Performance of Mutual Funds

1.
Investment Basics
What is Investment?
The money you earn is partly spent
and the rest saved for meeting future
expenses. Instead of keeping the savings
idle you may like to use savings in order
to get return on it in the future. This is
called Investment.
Why should one invest?

One needs to invest to:
○ Earn return on your idle resources.
○ Generate a specified sum of money
for a specific goal in life.
○ Make a provision for an uncertain
future.
One of the important reasons why

one needs to invest wisely is to meet the cost of Inflation. Inflation is the rate at
which the cost of living increases. The cost of living is simply what it costs to buy the
goods and services you need to live. Inflation causes money to lose value because it will
not buy the same amount of a good or a service in the future as it does now or did in the
past. For example, if there was a 6% inflation rate for the next 20 years, an Rs. 100
purchases today would cost Rs. 321 in 20 years. This is why it is important to
consider inflation as a factor in any long-term investment strategy. Remember to
look at an investment's 'real' rate of return, which is the return after inflation. The aim
of investments should be to provide a return above the inflation rate to ensure
that the investment does not decrease in value. For example, if the annual inflation
rate is 6%, then the investment will need to earn more than 6% to ensure it increases in
value. If the after-tax return on your
investment is less than the inflation rate,
then your assets have actually
decreased in value; that is, they won't
buy as much today as they did last year.
When to start Investing?

The sooner one starts investing the
better. By investing early you allow your
investments more time to grow,
whereby the concept of compounding
(as we shall see later) increases your
income, by accumulating the principal
and the interest or dividend earned on it,
year after year. The three golden rules for
all investors are:
• Invest early
• Invest regularly
• Invest for long term and not
short term
What care should one take while investing?

Before making any investment, one must ensure to:
1. Obtain written documents explaining the investment
2. Read and understand such documents
3. Verify the legitimacy of the investment
4. Find out the costs and benefits associated with the investment
5. Assess the risk-return profile of the investment
6. Know the liquidity and safety aspects
of the investment
7. Ascertain if it is appropriate for your
specific goals
8. Compare these details with other
investment opportunities available
9. Examine if it fits in with other
investments you are considering or
you have already made
10.Deal only through an authorized
intermediary
11.Seek all clarifications about the
intermediary and the investment
12. Explore the options available to you
if something were to go wrong, and
then, if satisfied, make the
investment.
What is meant by Interest?

When we borrow money, we are
expected to pay for using it - this is
known as Interest. Interest is an amount charged to the borrower for the privilege of
using the lender’s money. Interest is usually Calculated as a percentage of the principal
balance (the amount of money borrowed). The percentage rate may be fixed for the life
of the loan, or it may be variable, depending on the terms of the loan.
What factors determine interest rates?

When we talk of interest rates, there are different types of interest rates that
banks offer to their depositors, rates that they lend to their borrowers, the rate at
which the Government borrows in the Bond/Government Securities market, rates
offered to investors in small savings
schemes like NSC, PPF, rates at
which companies issue fixed deposits
etc.
The factors which govern these
interest rates are mostly economy
related and are commonly referred to
as macroeconomic factors. Some of
these factors are:
• Demand for money
• Level of Government borrowings
• Supply of money
• Inflation rate
• The Reserve Bank of India and
the Gove rnment policies which
determine some of the variables
mentioned above
What are various options available for

investment?
One may invest in:
Physical assets like real estate,
gold/jewellery, commodities etc.
Financial assets such as fixed deposits
with banks, small saving instruments
with post offices, insurance/provident/pension fund etc. or securities market
related instruments like shares, bonds, debentures etc.
What are various Short-term financial options available for investment?

Broadly speaking, savings bank
account, money market/liquid funds and
fixed deposits with banks may be
considered as short -term financial
investment options:
Savings Bank Account:
Saving bank account is often the
first banking product people use, which
offers low interest (4%- 5% p.a.),
making them only Marginally better
than fixed deposits.
Money Market or Liquid Funds:
money market are a specialized
form of mutual funds that invest in
extremely short -term fixed income
instruments and thereby provide easy
liquidity. Unlike most mutual funds,
money market funds are primarily
oriented towards protecting your capital
and then, aim to maximize returns.
Money market funds usually yield better
returns than savings accounts, but lower
than bank fixed deposits.
Fixed Deposits:
fixed deposits with Banks are also referred to as term deposits and minimum
investment period for bank FDs is 30 days. Fixed Deposits with banks are for
investors with low risk appetite, and may be considered for 6- 12 months
investment period as normally interest on less than 6 months bank FDs is likely
to be lower than money market fund returns.
What are various Long-term financial options available for investment?

Post Office Savings Schemes,
Public Provident Fund, Company
Fixed Deposits, Bonds and Debentures,
Mutual Funds etc.
Post Office Savings:

Post Office Monthly Income
Scheme is a low risk saving instrument,
which can be availed through any post
office. It provides an interest rate of 8%
per annum, which is paid monthly.
Minimum amount, which can be
invested, is Rs. 1,000/- and Additional
investment in multiples of 1,000/-
. Maximum Amount is Rs.3, 00,000/-
(if Single) or Rs.6, 00,000/-(if held
jointly) during a year. It has a maturity
period of 6 years. A bonus of 10% is
paid at the time of maturity. Premature
withdrawal is permitted if deposit is
more than one year old. A deduction of
5% is levied from the principal amount if withdrawn prematurely; the 10% bonus is also
denied.
Public Provident Fund:
A long term savings instrument with a maturity of 15 years and interest
payable at 8% per annum Compounded annually. A PPF account can be opened
through a nationalized bank at anytime during the year and is open all through the year
for depositing money. Tax benefits can be availed for the amount invested and
interest accrued is tax-free. A withdrawal is permissible every year from the seventh
financial year of the date of opening of the account and the amount of withdrawal will be
limited to 50% of the balance at
credit at the end of the 4th year
immediately preceding the year in which
the amount is withdrawn or at the end
of the preceding year whichever is
lower the amount of loan if any.
Company Fixed Deposits:
These are short -term(six
months) to medium-term (three to five
years) borrowings by companies at a
fixed rate of interest which is payable
monthly, quarterly, semi- Annually Or
annually. They can also be cumulative
fixed deposits where the entire principal
along with the interest is paid at the end
of the loan period. The rate of interest
varies between 6- 9 % per annum for
company FDs. The interest received is
after deduction of taxes.
Bonds:
It is a fixed income (debt) instrument issued for a period of more than one year
with the purpose of raising capital. The central or state government, corporations and
similar institutions sell bonds. A bond is generally a promise to repay the principal along
with a fixed rate of interest on a specified date, called the Maturity Date.
Mutual Funds:
These are funds operated by an
investment company which raises money
from the public and invests in a group of
assets (shares, debentures etc.), in
accordance with a stated set of
objectives. It is a substitute for those
who are unable to invest directly in
equities or debt because of resource,
time or knowledge constraints.
Benefits include professional money
management, buying in small amounts
and diversification. Mutual fund units
are issued and redeemed by the Fund
Management Company based on the
fund's net asset value (NAV), which is
determined at the end of each trading
session. NAV is calculated as the value
of all the shares held by the fund,
minus expenses, divided by the
number of units issued. Mutual Funds
are usually long term investment
vehicle though there some categories
of mutual funds, such as money
market mutual funds which are short term
instruments.
What is meant by a Stock Exchange?

The Securities Contract (Regulation) Act, 1956 [SCRA] defines ‘Stock Exchange’
as anybody of individuals, whether incorporated or not, constituted for the
purpose of assisting, regulating or controlling the business of buying, selling or dealing
in securities. Stock exchange could be a regional stock exchange whose area of
operation/jurisdiction is specified at the time of its recognition or national
exchanges, which are permitted to have nationwide trading since inception. NSE was
incorporated as a national stock exchange.
What are an ‘Equity’/Share?
Total equity capital of a
company is divided into equal units
of small denominations, each called a
share. For example, in a company the
total equity capital of Rs 2,0 0,00,000
is divided into 20, 00, 000 units of Rs
10 each. Each such unit of Rs 10 is called
a Share. Thus, the company then is said
to have 20,00,00 0 equity shares of
Rs 10 each. The holders of such shares
are members of the company and have
voting rights.
What is a ‘Debt Instrument’?

Debt instrument represents a
contract whereby one party lends
money to another on pre -determined
terms with regards to rate and
periodicity of interest, repayment of
principal amount by the borrower to the
lender. In the Indian securities
markets, the term ‘bond’ is used for debt instruments issued by the Central and
State governments and public sector organizations and the term ‘debenture’ is used
for instruments issued by private corporate sector.
What is a Derivative?
Derivative is a product whose value is derived from the value of one or more
basic variables, called underlying. The underlying asset can be equity, index, foreign
exchange (forex), commodity or any other asset.
Derivative products initially
emerged as hedging devices against
fluctuations in commodity prices and
commodity-linked derivatives remained
the sole form of such products for
almost three hundred years. The
financial derivatives came into spotlight
in post - 1970 period due to growing
instability in the financial markets.
However, since their emergence, these
products have become very popular
and by 1990s, they accounted for
about two thirds of total transactions in
derivative products.
What is a Mutual Fund?

A Mutual Fund is a body corporate
registered with SEBI (Securities
Exchange Board of India) that pools
money from individuals/corporate
investors and invests the same in a
variety of different financial instruments
or securities such as equity shares, Government securities, Bonds, debentures etc.
Mutual funds can thus be considered as financial intermediaries in the investment
business that collect funds from the public and invest on behalf of the investors. Mutual
funds issue units to the investors. The appreciation of the portfolio or securities in
which the mutual fund has invested the money leads to an appreciation in the value
of the units held by investors . The investment objectives outlined by a Mutual Fund
in its prospectus are binding on the Mutual Fund scheme. The investment objectives
specify the class of securities a Mutual Fund can invest in. Mutual Funds invest in
various asset classes like equity, bonds, debentures, commercial paper and government
securities. The schemes offered by mutual funds vary from fund to fund. Some are pure
equity schemes; others are a mix of
equity and bonds. Investors are also
given the option of getting dividends,
which are declared periodically by the
mutual fund, or to participate only in the
capital appreciation of the scheme.
What is an Index?
An Index shows how specified
portfolios of share prices are moving in
order to give an indication of market
trends. It is a basket of securities and
the average price movement of the
basket of securities indicates the index
movement, whether upwards or
downwards.
What is a Depository?
A depository is like a bank
wherein the deposits are securities (viz.
shares, debentures, bonds, government
securities, units etc.) in electronic form.
What is Dematerialization?
Dematerialization is the process by which physical certificates of an investor are
converted to an equivalent number of securities in electronic form and credited to the
investor’s account with his Depository Participant (DP).
INTRODUCTION
Day by day as business is getting more competitive and so the management is
achieving its importance in every field to increase the efficiency and to cut down the
cost of production. The present day giant
organization is a specialized or expert in
all spheres of management. The
importance of specialist from each has
emerged, these specialist are often called
as professionals.
During last few years or so,

financial management which was not
considered so much has now been
recognize as an important area. This
change has created importance for the
study of financial management which has
lead to various objectives-covered in this
research methodology. The methodology
of the project reveals the step-by-step
procedure done to carry out the project
study.
RESEARCH PROCESS
The process is way to do the work, and in this study the simple way is used. For
that the suitable research process for this study is given below.
RESEARCH PROCESS
DEFINE THE PROBLEM
DEFINE RESEARCH
OBJECTIVE
DEFINE RESEARCH DESIGN
COLLECTION OF DATA
ANALYSIS THE INFORMATION

PRESENT THE FINDINGS
➢ DEFINE RESEARCH
OBJECTIVE
The primary object of the present

project is to know about which
mutual funds gave highest
performance within one-year.
• To know about types of

mutual funds in detail.
• To know, which schemes
gives highest return within
one-year.
• Investor refers this project
before in investing in mutual
funds.
➢ BENEFITS OF THE STUDY
The project provided researcher the following benefits:
• This project will helpful for those people who want to know the
performance of mutual funds within one year.
• This report will helpful for those people who do not aware about the mutual
funds.
• This report will helpful for those people who want to invest some money in
the mutual funds.
➢ Data Collection
The data collection is very
important before conducting a
survey. The data can be collected
by two ways:
• The primary data.

• The secondary data.
Primary Data
Primary data is the data

collected by the researcher at the
time of research; its main purpose
is to serve the findings of the
research and is collected for the
first time.
Secondary Data
Secondary data is the data already collected by someone for his/her purpose
of study.
In this project report, I used secondary source of data in the form of overall mutual
funds details and performance, through various magazines, newspapers, internet
sites, etc.
➢ Limitation of the Study
These limitations that the researcher

faced during the study are as follows:
• The report on “performance of
mutual funds” is based on one
year. (18th July 2007 to 18th July
2008)
• This report is based on secondary
data.
• This report is based on high return
during programme.
What is Mutual Fund?
A mutual fund is a professionally

managed firm of collective investments
that collects money from many investors
and puts it in stocks, bonds, short-term
money market instruments, and/or other
securities. The fund manager, also known
as portfolio manager, invests and trades
the fund's underlying securities, realizing
capital gains or losses and passing any
proceeds to the individual investors.
A Mutual Fund is a body corporate

registered with SEBI (Securities
Exchange Board of India) that pools
money from individuals/corporate
investors and invests the same in a
variety of different financial instruments or securities such as equity shares,
Government securities, Bonds, debentures etc. Mutual funds can thus be
considered as financial intermediaries in the investment business that collect funds
from the public and invest on behalf of the investors. Mutual funds issue units to the
investors. The appreciation of the portfolio or securities in which the mutual fund
has invested the money leads to an appreciation in the value of the units held by
investors . The investment objectives outlined by a Mutual Fund in its prospectus
are binding on the Mutual Fund scheme. The investment objectives specify the class of
securities a Mutual Fund can invest in. Mutual Funds invest in various asset classes like
equity, bonds, debentures, commercial paper and government securities. The schemes
offered by mutual funds vary from fund to fund. Some are pure equity schemes; others
are a mix of equity and bonds.
Investors are also given the option of
getting dividends, which are declared
periodically by the mutual fund, or to
participate only in the capital
appreciation of the scheme.
What is NAV?
The net asset value, or NAV, is the

current market value of a fund's holdings,
less the fund's liabilities, usually
expressed as a per-share amount. For
most funds, the NAV is determined daily,
after the close of trading on some
specified financial exchange, but some
funds update their NAV multiple times
during the trading day. The public
offering price, or POP, is the NAV plus a sales charge.
NAV represents a fund's per unit market value. This is the price at which investors buy
("bid price") fund unit from a fund company and sell them ("redemption price") to a
fund company. It is derived by dividing the total value of all the cash and securities in a
fund's portfolio, less any liabilities, by the number of shares outstanding.
Advantage of Mutual Funds

I. Portfolio diversification
Mutual funds normally invest

in a well- diversified portfolio of
securities. Each investor in a mutual
fund is a part owner of all the fund’s
assets. This enables him to hold a
diversified investment portfolio
even with a small amount of
investment, which would otherwise
require big capital.
II. Profession management
Even if an investor has a big

amount of capital available to him,
he benefits from the professional
management skills brought in by the
fund in the management of the
investor’s portfolio, the investment
management skills, along with the
needed research into available
investment options; ensure a much
better return than what an investor
can manage on his own. Few
investors have skills and resources
of their own to succeed in today’s
fast moving, global and
sophisticated markets.
III.Reduction of risk
An investor in a mutual fund acquired a diversified portfolio, no matter how

small his investment. Diversification reduces the risk of loss, as compared to
investing directly in one or two shares or debenture or other instruments. When an
investor invests directly, all the risk of potential loss is his own. While investing in
the pool of funds with other investor, any loss on one or two securities is also shared
with other investors. This risk
reduction is one of the most
important benefits of collective
investment vehicle like the mutual
fund,
IV.Reduction of transaction
costs
What is true of risk is also

true of the transaction costs. A
direct investor bears all the costs of
investing such as brokerage or
custody of securities. When going
through a fund, he has the benefit of
economies of scale; the funds pay
lesser costs because of larger
volumes, a benefit passed on to its
investors.
V. Liquidity
Often, investors hold shares

or bonds they cannot directly, easily
and quickly sell. Investment in a
mutual fund, on the other hand, is
more liquid. An investor can
liquidate the investment by selling the units to the fund if it is an open-end fund, or
by selling the units in the stock market if the fund is a closed-end fund, since closed
ends funds have to be listed on a stock exchange, in any case, the investor in a closed
end fund receives the sale proceeds at the end of a period specified by the mutual
fund or the stock exchange.
VI.Safety
Mutual fund industry is well-
regulated; all funds are registered
with SEBI which lays down rules to
protect the investors. Thus, investor
also benefit from the safety of a
regulated investment environment.
Disadvantage of Mutual
Funds
I. Costs
Mutual funds provide

investors with professional
management, but it comes at a
cost. Funds will typically have a
range of different fees that reduce
the overall payout. In mutual
funds, the fees are classified into
two categories: shareholder fees
and annual operating fees.
II. Misleading Advertisements
The misleading advertisements of different funds can guide investors down

the wrong path. Some funds may be incorrectly labeled as growth funds, while
others are classified as small cap or income funds. The Securities and Exchange
Commission (SEC) requires that funds have at least 80% of assets in the particular
type of investment implied in their names. How the remaining assets are invested
is up to the fund manager.
Mutual Fund
Classifications
Open-end Vs. Closed-end Funds
An open-end fund is one that sells

and repurchases units at all times. When
the fund sells units, the investor buys them
from the fund. When the investor redeems
the units, the fund repurchases the units
from the investor. An investor can buy
units or redeem units from the fund itself at
a price based on the net asset value (NAV)
per unit. NAV per unit is obtained by dividing the amount of the market value of the fund's
assets (plus accrued income minus the fund's liabilities) by the number of units outstanding.
The number of units outstanding goes up or down every time the fund sells new units or
repurchases existing units. In other words, the `unit capital' of an open-end mutual fund is
not fixed but variable. When sale of units exceeds repurchase, the fund increases in size.
When repurchase exceeds sale, the fund shrinks.
Unlike an open-end fund, the `unit capital' of a closed-end fund is fixed, as it
makes a one-time sale of a fixed number of units. After the offer closes, closed-end
funds do not allow investors to buy or redeem units directly from the funds. However, to
provide the much-needed liquidity to
investors, closed-end funds list on a stock
exchange. Trading through a stock
exchange enables investors to buy or sell
units of a closed-end mutual fund from
each other, through a stockbroker, in the
same fashion as buying or selling shares
of a company. The fund's units may be
traded at a discount or premium to NAV
based on investors' perceptions about the
fund's future performance and other
market factors affecting the demand for
or supply of the fund's units. The number
of outstanding units of a closed-end fund
does not vary on account of trading in the
fund's units at the stock exchange.
Sometimes, closed-end funds do offer
"buy-back of fund shares/units", thus
offering another avenue for liquidity to
closed-end fund investors. In this case,
the mutual fund actually reduces the
number of outstanding units. In India,
SEBI regulations ensure that the closed
end scheme investors are given at least
one of the two exit avenues.
Load and No-load Funds
Marketing of a new mutual fund scheme involves initial expenses. These expenses
may be recovered from the investors in different ways at different times. Three usual
ways in which a fund's marketing expenses may be recovered from the investors are:
1) At the time of investor's entry into the
fund/scheme, by deducting a specific
amount from his contribution
2) By charging the fund/scheme with a
fixed amount each year, during a
specified number of years
3) At the time of the investor's exit from
the fund/scheme, by deducting a
specified amount from the redemption
proceeds payable to the investor.
These charges imposed on the

investors to cover
distribution/sales/marketing expenses are
often called "loads". The load charged to
the investor at the time of his entry into a
scheme is called a "front-end load or
entry load". This is the first case above.
The load amount charged to the scheme
over a period of time is called a "deferred
load". This is the second case above. The
load that the investor pays at the time of his
exit is called a "back-end load or exit
load". This is the third case above. Some
funds may also charge different amounts of
loads to the investors, depending upon how
many years the investor has stayed with the
fund; the longer the investor stays with the fund, less the amount of "exit load" he is
charged. This is called "contingent deferred sales charge".
Funds that charge front-end, back-end or deferred loads are called load funds.
Funds that make no such charges or loads for sales expenses are called no-load funds.
The reason for this slightly different definition of a load by SEBI is to be found in
the nature of its regulation. Front-end load, or load as defined by SEBI, is meant to cover
the marketing expenses associated with the first issue of a scheme. Other expenses are
defined as "recurring expenses", rather
one as "loads". SEBI regulations allow
AMCs to recover loads from the investors
for the purpose of paying for the initial
issue expenses, subject however to a limit
on the maximum amount that can be
charged by the AMC.
This limit currently stands at 6%,

meaning that initial issue expenses should
not exceed 6% of the initial corpus
mobilized during the initial offer period.
Similarly, SEBI has also imposed a limit
on the maximum "recurring expenses"
that can be charged to a scheme. The limit
has been related to i.e. level of the daily or
weekly average net assets. Thus, the
AMC can charge a scheme 2.5% of the
average net assets of the scheme as
recurring expenses, if the net assets do not
exceed Rs. 100 crores, 2.25% on the next
300 crores, 2.00% on the next 300 crores
and 1.75% over Rs. 700 crores. If the
AMC had absorbed the initial issue
expenses, it can charge an additional 1 %
of net assets as recurring expenses. In case
of closed End Scheme these percentage
shall be lesser by at least 0.25%.
As an example,
If an open-end fund's NAV per unit is Rs. 11, with a front-load of 2%, the price at
which an investor can buy a unit is Rs. 11.22.
Expressed another way, an investment of Rs. 100 would not buy 100/11=9.09 units,
but only 100-2=98/11=8.9 units.
If the redemption price is Rs. 10.70, with a back-end load of 2%,
The exit load charged
by the fund amounts to Re.
0.21 So net sale proceeds will
be 10.70-.21=10.49.
Expressed
another way, sale of
50 units would not
fetch 50* 10.70=Rs.
535, but only 50*
10.49=Rs. 524.5
Tax-exempt Vs.
Non-Tax-exempt
Funds
Generally, when a fund invests in

tax-exempt securities, it is called a tax-
exempt fund. In India, any income
received by the mutual fund is tax-free.
After the 1999 Union Government
Budget, all of the dividend income
received from any of the mutual funds is
tax-free in the hands of the investor.
However, funds other than open-end
equity oriented funds have to pay a
distribution tax, before distributing income to investors. In other words, open-end equity
oriented mutual fund schemes are tax exempt investment avenues, while other funds are
taxable for distributable income.
Top performance in Tax-exempt funds
Taurus Libra Tax shield (G)

➢ Scheme Details
Min. Inv Inc. Inv(Rs.) Tax benefits
Asset Size (Cr.) Fund Manager Launch Date
13.18 Nitish Ojha 01/01/1996 500 500 112(1), 94(7),

115(R), 80C
(2) (xiii)
➢ Return Summary
6MONTH 1YEAR
Scheme Name 3MONTH
Taurus Li -11.76 -19.37 19.19
Nifty -2.26 -12.68 23.66
Sensex -3.4 -11.49 23.41
➢ Scheme Portfolio
% of Investment Amt (Rs. /Cr.)
Investment
Company Name
MMI-Others 18.51 2.44
Bihar Tubes 12.13 1.6
Orchid Chemicals 8.83 1.16
3i Infotech 7.04 0.93
6.71 0.88
Reliance Capital
Net 4 India 4.42 0.58
JSW Steel 4.41 0.58
Infra.Devlp.Fin 4.15 0.55
Jaiprakash Hydro 3.9 0.51
Mangalore Ref. 3.75 0.49
Jaiprakash Assoc 3.71 0.49
3.27 0.43
PVR
Electrost.Cast. 3.11 0.41
J K Cements Ltd 2.98 0.39
Guj. NRE Coke 2.61 0.34
Jay Engineering 2.09 0.28
IFCI 1.98 0.26
Idea Cellular 1.77 0.23
1.21 0.16
Siemens
Tata Tele service 1.19 0.16
Reliance Power 0.93 0.12
Rural Elec. Corp 0.71 0.09
Facor Steels 0.59 0.08
➢ Previous Dividend
Dividend (%)
Dividend Date
Sep 26 2003 11
Feb 27 2004 16
Feb 8 2002 3
Dec 23 2005 35
➢ NAV Of This Scheme

18-Jul-08 23.27
18-Jun-08 25.8
18-May-08 28.52
18-Apr-08 27.12
18-Mar-08 22.3
18-Feb-08 29.86
18-Jan-08 33.06
18-Dec-07 33.71
18-Nov-07 31.29
18-Oct-07 24.2
18-Sep-07 22.59
18-Aug-07 18.95
18-Jul-07 20.41
➢ Line Chart Of NAV
Money Market/Liquid Funds
Often considered to be at the lowest rung in the order of risk level, Liquid Funds
invest in debt securities of a short-term nature, which generally means securities of less
than one-year maturity. The typical, short term, interest-bearing instruments these funds
invest in include Treasury Bills issued by
governments, Certificates of Deposit
issued by banks and Commercial Paper
issued by companies.
The major strengths of money
market or liquid funds are liquidity and
safety of the principal that the investors
can normally expect from short-term
investments. Though interest rate risk is
present, the impact is low as the
investment instruments' maturities are
short.
Top performance in Liquid Funds
Escorts Liquid Plan (G)
➢ Scheme Details
Launch Min. Inv Tax benefits

Date
Asset Size (Cr.) Fund Manager
7.21 Sanjee Sharma 27/09/2005 1000 112(1), 94(7),

115(R)
➢ Return Summary
Scheme Name 3MONTH 6MONTH 1YEAR

4.51 9.05
Escorts Liquid Plan 2.32

Nifty -2.26 -12.68 23.66
Sensex -3.4 -11.49 23.41
Investment
Company Name
J & K Bank 67.78 4.88
E X I M Bank 11.05 0.80
Power Fin. Corp 9.73 0.70
LIC Housing Fin 9.61 0.69
Net CA & Others 1.83 0.13
18-Jul-08 12.20
18-Jun-08 12.10
18-May-08 12.01
18-Apr-08 11.92
18-Mar-08 11.84
18-Feb-08 11.75
18-Jan-08 11.68
18-Dec-07 11.60
18-Nov-07 11.52
18-Oct-07 11.44
18-Sep-07 11.36
18-Aug-07 11.27
18-Jul-07 11.19
Gilt Funds
Gilts are government securities with medium to long-term maturities, typically of

over one year (under one-year instruments being money market securities). In India, we
have Government Securities or Gilt Funds that invest in government paper called dated
securities (unlike Treasury Bills that mature in less than one year). Since the issuer is the
Government/s of India/States, these funds have little risk of default and hence offer
better protection of principal. However, Gilt securities, like all debt securities, face
interest rate risk. Debt securities' prices fall when interest rate levels increase (and vice
versa). Investors have to understand the
potential changes in NAVs of gilt funds
on account of changes in interest rates in
the economy.
Top performance in Gilt funds
Escorts Gilt Fund (G)
➢ Scheme Details
Launch Min. Inv Inc. Inv(Rs.)

Date
0.08 Sanjee Sharma Feb 19, 2001 1000 1000
➢ Return Summary
Escorts Gilt Fund 7.67 4.46 10.45

-12.68 23.66
Nifty -2.26
Sensex -3.4 -11.49 23.41
Investment
Company Name
GSEC 45.32 0.04
GSEC2012 38.51 0.03
Net CA & Other 16.15 0.01
TAMILNADU SD 0.02 0
18-Jul-08 12.20
18-Jun-08 12.10
18-May-08 12.01
18-Apr-08 11.92
18-Mar-08 11.84
18-Feb-08 11.75
18-Jan-08 11.68
18-Dec-07 11.60
18-Nov-07 11.52
18-Oct-07 11.44
18-Sep-07 11.36
18-Aug-07 11.27
18-Jul-07 11.19
Debt Funds (or Income Funds)
Next in the order of risk level, we have the general category Debt Funds. Debt
funds invest in debt instruments issued not only by governments, but also by private
companies, banks and financial institutions and other entities such as infrastructure
companies/utilities. By investing in debt, these funds target low risk and stable income
for the investor as their key objectives.
However, as compared to the money
market/liquid funds, they do have a
higher price fluctuation risk, since they
invest in longer-term securities.
Similarly, as compared to Gilt Funds,
general debt funds do have a higher risk
of default by their borrowers.
Debt Funds are largely considered
as Income Funds as they invest primarily
in fixed income generating debt
instruments. They do not target capital
appreciation but look for current income,
and therefore distribute a substantial part
of their surplus to investors. Income
funds that target high returns can face
more risks. Even within the broad
category of debt investment, different
investment objectives can be set. Each
would result in a different risk profile.
Let us see Debt Funds in this light.
a) Diversified Debt Funds
A debt fund that invests in all

available types of debt securities, issued
by entities across all industries and sectors is a properly diversified debt fund. While
debt funds offer high income and less risk than equity funds, investors need to recognize
that debt securities are subject to risk of default by the issuer on payment of interest or
principal. A diversified debt fund has the benefit of risk reduction through
diversification. Hence a diversified debt fund is less risky than a narrow-focus fund that
invests in debt securities of a particular sector or industry. In addition, all debt mutual
funds lead to risk reduction for the individual investor as any losses by a debt issuer are
shared by a large number of investors in the fund.
b) Focused Debt Funds
Some debt funds have a narrower
focus, with less diversification in its
investments. Examples include sector,
specialized and offshore debt funds. They
have a substantial part of their portfolio
invested in debt instruments and are
therefore more income oriented and
inherently less risky than equity funds.
However, the Indian financial markets
have demonstrated that debt funds should
not be automatically considered to be less
risky than equity funds, as there have
been relatively large defaults by issuers
of debt and many funds have non-
performing assets in their debt portfolios.
It should also be recognized that market
values of debt securities will also
fluctuate more as Indian debt markets
witness more trading and interest rate
volatility in the future. The central point
to note is that all these narrow-focus
funds have greater risk than diversified
debt funds.
Other examples of focused funds
include those that invest only in
Corporate Debentures and Bonds or only in Tax Free Infrastructure or Municipal Bonds.
While these funds are entirely conceivable now, they may take some time to appear as a
real choice for the Indian investor. One category of specialized funds that invests in the
housing sector, but offers greater security and safety than other debt instruments, is the
Mortgage Backed Bond Funds that invest in special securities created after securitization
of (and thus secured by) loan receivables of housing finance companies. As the Indian
financial markets witness the growth of securitization, such funds may appear on the
mutual fund scene soon.
c) High Yield Debt Funds
Usually, Debt Funds control the

default risk by investing in securities
issued by borrowers who are rated by
credit rating agencies and are considered
to be of "investment grade". There are,
however, High Yield Debt Funds that
seek to obtain higher interest returns by
investing in debt instruments that are
considered "below investment grade".
Clearly, these funds are exposed to
higher default risk. In the U.S.A., funds
that invest in debt instruments that are
not backed by tangible assets and rated
below investment grade (popularly
known as junk bonds) are called Junk
Bond Funds. These funds tend to be more
volatile than other debt funds, although
they may earn at times higher returns as a
result of the higher risks taken.
Top performance in Debt Funds (or

Income Funds)
DBS Chola Monthly Income Plan (G)
➢ Scheme Details
Asset Size (Cr.) Fund Manager Launch Date Min. Inv Inc. Inv(Rs.)
22.84 Ashish Nigam 7/27/1998 5000 1000

➢ Return Summary
6MONTH 1YEAR
Scheme Name 3MONTH
DBS Chola -3.67 0.21 21.92
Nifty -2.26 -12.68 23.66
Sensex -3.4 -11.49 23.41
% of Investment Investment Amt (Rs. /Cr.)
Company Name
Reliance Inds. 0.92 0.21

BHEL 0.91 0.21
Indian Overseas 0.87 0.2
GMR Infra. 0.7 0.16
Hind. Construct. 0.7 0.16
0.67 0.15
Power Fin. Corp.

Nag. Construct. 0.59 0.13
ICICI Bank 0.55 0.13
Patel Engg. 0.48 0.11
Century Textiles 0.45 0.1
Spice Jet 0.44 0.1
0.4 0.09
Kotak Mah. Bank

Reliance Infrast 0.3 0.07
Great Offshore 0.24 0.05
Pun. Natl. Bank 0.14 0.03
Uni.Brew. (Hold.) 0.11 0.02
HDFC Bank 0.1 0.02
Zee Entertainment 0.04 0.01
41.81 9.55
Develop.Cr.Bank
Yes Bank 14.54 3.32
Cash & Bank Balance 11.57 2.64
HDFC 10.59 2.42
Videocon Inds. 1.14 0.26
16.5224
18-Jul-08
18-Jun-08 16.9801
18-May-08 17.31
18-Apr-08 17.0502
18-Mar-08 16.3731
18-Feb-08 16.6307
18-Jan-08 16.2386
18-Dec-07 14.781
18-Nov-07 14.3342
13.8695
18-Oct-07
18-Sep-07 13.4992
18-Aug-07 13.3783
18-Jul-07 13.4685

a) Assured Return Funds - an Indian
Variant
Fundamentally, mutual funds

hold assets in trust for investors. The
role of the fund manager is to provide
professional management service and to
ensure the. Most favorable risk-return
profile consistent with the investment
objective of the fund. The fund
manager, the trustees or the sponsors do
not guarantee minimum return to the
investors.
However, in India, historically,
UTI and other funds had offered "assured
return" schemes to investors. The most
popular variant of such schemes was the
Monthly Income Plans of UTI. Returns
were indicated in advance for all of the
future years of these closed-end schemes.
In assured return schemes the shortfall, if
any, is borne by the sponsors/AMCs.
Assured Return or Guaranteed Monthly Income Plans are essentially Debt/Income
Funds. Assured return debt funds certainly reduce the risk to the investor as compared to
all other debt or equity funds, but only to the extent that the guarantor has the required
financial strength. Hence, the market regulator SEBI permits only those funds whose
sponsors have adequate net-worth to offer assurance of returns.
If an assured return scheme is offered, explicit guarantee is required from a

guarantor whose name has to be specified in advance in the offer document of the
scheme. The risk that the investor faces was clearly demonstrated when the assured
return schemes of UTI faced large
shortfalls in their payment obligations. In
case of UTI, the Government bailed it out
and took over the scheme obligations on
itself. Assured return schemes are no
longer offered by AMCs, though
possible.
While Assured Return Schemes
may certainly be considered to be the
lowest risk type within the debt funds
category, they are still not entirely risk-
free, as investors have to normally lock
in their funds for the term of the scheme
or at least a specified period such as three
years. During this period, changes in the
financial markets may result in the
investor losing the opportunity to obtain
higher returns later in other debt or equity
funds. Besides, the investor is faced with
the credit risk of the guarantor who must
remain solvent enough to honour his
guarantee during the lock-in period.
b) Fixed Term Plan Series - Another

Indian Variant
A mutual fund scheme would normally be either open-end or closed-end.

However, in India, mutual funds have developed an innovative middle option between
the two, in response to investor needs.
If a scheme is open-end, the fund issues new units and redeems them at all times.
The fund does not have a stated maturity or fixed term of investment as such. Fixed
Term Plan Series offer a combination of both these features to investors, as a series of
plans are offered and units are issued at frequent intervals for short plan durations.
Fixed Term Plans are essentially closed-end in nature, in that the mutual fund
AMC issues a fixed number of units for each series only once and closes the issue after
an initial offering period, like a closed-
end scheme offering. However, a closed-
end scheme would normally make a one-
time initial offering of units, for a fixed
duration generally exceeding one year.
Investors have to hold the units until the
end of the stated duration, or sell them on
a stock exchange if listed. Fixed Term
Plans are closed-end, but usually for
shorter term-less than a year. Being of
short duration, they are not listed on a
stock exchange. Of course, like any
closed-end fund, each plan series can be
wound up earlier, under certain
regulatory conditions, as we shall see
later.
It is also important to bear in

mind that the actual structure of the
umbrella scheme under which a Fixed
Term Plan Series is offered can be
either closed-end or open end. Some
funds in India use a closed-end
structure, while others the open end
structure, to offer Term Plans. In any
case, one can think of Fixed Term Plans
as a series of closed-end plans within a scheme. Like the closed-end funds, Fixed Term
Plans also make only a one-time offering of units, but such offerings are made in a
series of plans under one offer document. No separate offer document is issued each
time a new series is launched.
The scheme under which such Fixed Term Plan Series are offered is likely to be
an Income Scheme, since the objective is clearly for the AMC to attempt to reward
investors with an expected return within a short period. Mutual Fund AMCs in India
usually offering such plans do not guarantee any returns, but the product has clearly
been designed to attract the short term investor who would otherwise place the money as
fixed term bank deposits or inter-corporate deposits.
Equity Funds
As investors move from Debt Fund

category to Equity Funds, they face
increased risk. However, there is a large
variety of Equity Funds each with a
slightly different risk profile. Investors
and their advisors need to sort out and
select the right equity fund that suits their
risk appetite. In the following section, we
have presented the types of Equity Funds,
going from the highest risk level to the
lowest level within this category.
Before we look at the types of
equity fund in terms of their risk, we
must understand where the risks of equity
funds come from and how they are
different from debt funds. Equity funds
invest a major portion of their corpus in
equity shares issued by companies,
acquired directly in initial public
offerings or through the secondary
market. Equity funds would be exposed
to the equity price fluctuation risk at the
market level, at the industry or sector level and at the company-specific level. Equity
Funds' Net Asset Values fluctuate with all these price movements. These price
movements are caused by several external factors -political, social as well as economic.
The issuers of equity shares offer no guaranteed repayment as in case of debt

instruments. Hence, Equity Funds are generally considered at the higher end of the risk
spectrum among all funds available in the market. On the other hand, unlike debt
instruments that offer fixed amounts of repayments, equities can appreciate in value in
line with the issuer's earnings potential,
and so offer the greatest potential for
growth in capital.
Equity funds adopt different
investment strategies resulting in
different levels of risk. Hence, they are
generally separated into different types
in terms of their investment styles.
Below we discuss some of the major
types of equity funds, arranged in
descending order of risk.
a) Aggressive Growth Funds.
There are many types of

stocks/shares available in the market;
Blue Chips that are recognized market
leaders, less researched stocks that are
considered to have future growth
potential, and even some speculative
stocks of somewhat unknown or
unproven issuers. Fund managers seek
out and invest in different types of stocks
in line with their own perception of
potential returns and appetite for risk.
As the name suggests, aggressive
growth funds target maximum capital appreciation, invest in less researched or
speculative shares and may adopt speculative investment strategies to attain their
objective of high returns for the investor. Consequently, they tend to be more volatile
and riskier than other funds.
b) Growth Funds
Growth funds invest in companies whose earnings are expected to rise at an above
average rate. These companies may be operating in sectors like technology considered
having a growth potential, but not entirely unproven and speculative. The primary
objective of Growth Funds is capital
appreciation over a three to five year
span. Growth funds are therefore less
volatile than funds that target aggressive
growth.
Top performance in growth funds
Sahara Growth Funds (G)
➢ Scheme Details

Date
5.23 A N Sridhar Jul 22, 2002 3000 1000
➢ Return Summary

-16.37 7.94
Sahara Growth -12.03
Nifty -2.26 -12.68 23.66

Sensex -3.4 -11.49 23.41
➢ Sector allocation
Assests (%) Value (Rs. /Cr.)
Sector
Petroleum 14.55 0.95
Banks 13.58 0.88
Industrial Capital Goods 11.75 0.76
Power & Others 8.69 0.56
Automobiles 7.09 0.46

6.80 0.44
Others
Ferrous Metal 6.02 0.39
Construction & Others 5.81 0.38
Oil/Gas 5.68 0.37
Consumer Non Durables 5.32 0.34

5.07 0.33
Pharma
Telecommunication Serv 4.02 0.26
Gas & Others 3.03 0.19
Finance 2.57 0.16

54.8702
18-Jul-08
18-Jun-08 59.7257
18-May-08 66.3448
18-Apr-08 64.3757
18-Mar-08 60.3195
18-Feb-08 70.5016
18-Jan-08 76.0525
18-Dec-07 74.9922
18-Nov-07 76.8305
18-Oct-07 66.3806
58.0865
18-Sep-07
18-Aug-07 52.4178
18-Jul-07 56.5281

a) Speciality Funds
These funds have a narrow

portfolio orientation and invest in only
companies that meet pre-defined criteria.
For example, at the height of the South
African apartheid regime, many funds in
the U.S. offered plans that promised not
to invest in South African companies.
Some funds may build portfolios that will
exclude tobacco companies. Funds that
invest in particular regions such as the
Middle East or the ASEAN countries are
also an example of specialty funds.
Within the Specialty Funds category,
some funds may be broad-based in terms
of the types of investments in the
portfolio. However, most specialty funds
tend to be concentrated funds, since
diversification is limited to one type of
investment. Clearly, concentrated
speciality funds tend to be more volatile
than diversified funds.
➢ Sector Funds
Sector funds' portfolios consist of investments in only one industry or

sector of the market such as Information Technology, Pharmaceuticals or Fast
Moving Consumer Goods. Since sector funds do not diversify into multiple
sectors, they carry a higher level of sector and company specific risk than
diversified equity funds.
Top performance in sector funds.
Reliance Diversified Power

Sector (G)
➢ Scheme Details

Date
4577.05 Sunil Singhania 3/29/2004 5000 1
➢ Return Summary
Reliance -15.59 -24.62 19.13

-12.68 23.66
Nifty -2.26
Sensex -3.4 -11.49 23.41
Company Name % of Investment Investment Amt (Rs. /Cr.)

Net CA & Others 30.13 1379.07
9.24 422.92
Other Equities
Tata Power Co. 5.41 247.62
Jindal Steel 4.48 205.05
3.6 164.77
BHEL
Punj Lloyd 3.05 139.6
Torrent Power 2.7 123.58
Siemens 2.01 92
Larsen & Toubro 1.99 91.08
1.83 83.76
Crompton Greaves
Cummins India 1.73 79.18
ABB 1.72 78.73
PTC India 1.7 77.81
Suzlon Energy 1.61 73.69
Voltamp Trans 1.58 72.32
Kirl. Brothers 1.58 72.32
1.35 61.79
Rural Elec. Corp

NTPC 1.33 60.87
Jindal Stainless 1.29 59.04
Bajaj Electrical 1.16 53.09
EMCO 1.13 51.72
Areva T&D 1.07 48.97
Cairn India 1.02 46.69
53.5977
18-Jul-08
18-Jun-08 59.6168
18-May-08 66.53
18-Apr-08 64.9958
18-Mar-08 60.5071
18-Feb-08 71.2474
18-Jan-08 79.6509
18-Dec-07 76.2487
18-Nov-07 76.9007
63.5594
18-Oct-07
18-Sep-07 52.0871
18-Aug-07 46.2595
18-Jul-07 46.1384

➢ Foreign Securities Funds
These funds invest in

equities in one or more foreign
countries thereby achieving
diversification across the country's
borders. However they also have
additional risks - such as the
foreign exchange rate risk - and
their performance depends on the
economic conditions of the
countries they invest in. Foreign
Securities Equity Funds may invest
in. a single country (hence riskier)
or many countries (hence more
diversified).
➢ Mid-Cap or Small-Cap
Equity Funds
These funds invest in shares

of companies with relatively lower
market capitalization than that of
big, blue chip companies. They
may thus be more volatile than other funds, as mid-size or smaller companies'
shares are not very liquid in the markets. We can think of these funds as a segment
of specialty funds. In terms of risk characteristics, small company funds may be
aggressive-growth or just growth type. In terms of investment style, some of these
funds may also be "value investors" (as explained the Investment Management
chapter).
➢ Option Income Funds

These funds do not yet exist
in India, but Option Income Funds
write options on a significant part
of their portfolio. While options
are viewed as risky instruments,
they may actually help to control
volatility, if properly used.
Conservative option funds invest
in large, dividend paying
companies, and then sell options
against their stock positions. This
ensures a stable income stream in
the form of premium income
through selling options and
dividends. Now that options on
individual shares have become
available in India, such funds may
be introduced.
a) Diversified Equity Funds
A fund that seeks to invest only in

equities, except for a very small portion
in liquid money market securities, but is not focused on any one or few sectors or shares,
may be termed a diversified equity fund. While exposed to all equity price risks,
diversified equity funds seek to reduce the sector or stock specific risks through
diversification. They have exposure to the equity market risk. Such general purpose
diversified funds are clearly at a lower risk level than growth funds.
➢ Equity Linked Savings Schemes: an Indian Variant

In India, investors have been
given tax concessions to encourage
them to invest in equity markets
through these special schemes.
Investment in these schemes
entitles the investor to claim an
income tax rebate, but usually has
a lock-in period. As the name
suggests, there are no specific
restrictions on the investment
objectives for the fund managers.
Investors should clearly look for
where the Fund Management
Company proposes to invest and
accordingly judge the level of risk
involved. Generally, such funds
would be in the Diversified Equity
Fund category.
Top performance in Diversified Equity

Funds
Reliance Regular Savings

Fund - Equity (G)
➢ Scheme Details
632.26 Arpit Malaviya 6/10/2004 500 1
➢ Return Summary
6MONTH 1YEAR
Scheme Name 3MONTH
Reliance -16.36 -28.47 7.54
Nifty -2.26 -12.68 23.66
Sensex -3.4 -11.49 23.41
Investment
Company Name
Net CA & Others 26.56 167.93
Other Equities 7.08 44.76
Divi's Lab 4.23 26.74
Pratibha Inds 4.14 26.18
Biocon 3.33 21.05
2.99 18.90
Radico Khaitan
Maruti Suzuki 2.93 18.53
India Infoline 2.49 15.74
Bharat Electron 2.49 15.74
Jain Irrigation 2.31 14.61
Bharti Airtel 2.28 14.42
2.25 14.23
Bombay Ryn Fash
BHEL 2.18 13.78
Reliance Comm 2.10 13.28
Mercator Lines 1.93 12.20

1.86 11.76
Reliance Infrast
Zuari Inds. 1.85 11.70
Bombay Dyeing 1.84 11.63
Titan Inds. 1.84 11.63
Shiv-Vani Oil 1.74 11.00

1.68 10.62
St Bk of India
Areva T&D 1.67 10.56
PTC India 1.61 10.18
Jindal Saw 1.58 9.99
Madhucon Project 1.41 8.91
Kirl. Oil Engine 1.39 8.79

1.38 8.73
Voltamp Trans
Sterlite Tech 1.26 7.97
Take Solutions 1.23 7.78
India Cements 1.08 6.83
➢ Sectorial Allocation
Assets (%) Value (Rs. /Cr.)
Sector
Others 17.72 122.62
Construction & Others 11.50 79.58
Banks 7.39 51.14
5.28 36.53
Consumer Non Durables

Software 5.23 36.19
Indust. Products 4.29 29.68
Finance 3.36 23.25
Pharma 3.26 22.56
Oil/Gas 2.61 18.06
2.51 17.37
Telecommunication Serv
Chemicals & Others 2.22 15.36
Transport 2.16 14.94
Fertilizers 1.57 10.86
Telecommunication Equip 1.38 9.55
Cement 1.24 8.58
1.10 7.61
Textile Prod.
Diversified 0.59 4.08
18-Jul-08 18.6413
18-Jun-08 21.174
18-May-08 23.5449
22.7669
18-Apr-08
18-Mar-08 20.8345
18-Feb-08 25.8347
18-Jan-08 28.8404
18-Dec-07 27.1502
18-Nov-07 24.5015
18-Oct-07 20.3488
18-Sep-07 18.6567
18-Aug-07 16.6373
17.9707
18-Jul-07
a) Equity Index Funds

An index fund tracks the
performance of a specific stock market
index. The objective is to match the
performance of the stock market by
tracking an index that represents the
overall market. The fund invests in shares
that constitute the index and in the same
proportion as the index. These funds take
only the overall market risk, while
reducing the sector and stock specific risks
through diversification. However, there are
index funds that track a narrow sectoral
index, such as Pharma Index or Bank
Index. These will be less diversified and
more risky, although they will still be less
risky compared to individual stocks in that
industry/sector.
Top performance in Equity Index

Funds
ICICI Pru Index Fund-Nifty

Plan
➢ Scheme Details
29.94 Yogesh Bhatt 2/15/2002 5000 1000
➢ Return Summary
6MONTH 1YEAR
Scheme Name 3MONTH
ICICI Pru -14.91 -18.50 -4.03
Nifty -2.26 -12.68 23.66
Sensex -3.4 -11.49 23.41
% of
Company Name Investment Investment Amt (Rs. /Cr.)

Derivatives 28.86 8.64
ONGC 5.08 1.52
Bharti Airtel 3.99 1.19
NTPC 3.65 1.09
Infosys Tech. 2.89 0.87
Reliance Comm 2.66 0.8
2.45 0.73
TCS
Reliance Petro 2.23 0.67
ITC 2.06 0.62
St Bk of India 2.04 0.61
DLF Ltd 1.97 0.59
BHEL 1.97 0.59
Wipro 1.96 0.59
1.68 0.5
SAIL
HDFC 1.63 0.49
Tata Steel 1.55 0.46
Sterlite Inds. 1.44 0.43
Hind. Unilever 1.31 0.39
HDFC Bank 1.04 0.31
Power Grid Corp. 0.96 0.29
0.85 0.26
Satyam Computer
Sun Pharma. 0.84 0.25
GAIL (India) 0.82 0.25
Unitech 0.81 0.24
Natl. Aluminium 0.66 0.2
0.57 0.17
Ranbaxy Labs.
Maruti Suzuki 0.52 0.16
Hindalco Inds. 0.51 0.15
ABB 0.5 0.15
Grasim Inds. 0.49 0.15
HCL Technologies 0.49 0.15
0.48 0.14
Tata Motors
Cipla 0.48 0.14
Hero Honda Motor 0.4 0.12
Siemens 0.38 0.11
M&M 0.35 0.1
Ambuja Cem. 0.34 0.1
0.33 0.1
Dr Reddy's Labs.
Tata Comm 0.31 0.09
ACC 0.29 0.09
Zee Entertainmen 0.25 0.08
BPCL 0.24 0.07
Net CA & Others -19.38 -5.8
18.6413
18-Jul-08
18-Jun-08 21.174
18-May-08 23.5449
18-Apr-08 22.7669
18-Mar-08 20.8345
18-Feb-08 25.8347
18-Jan-08 28.8404
18-Dec-07 27.1502
18-Nov-07 24.5015
20.3488
18-Oct-07
18-Sep-07 18.6567
18-Aug-07 16.6373
18-Jul-07 17.9707

a) Value Funds
The Growth Funds we reviewed

above hold shares of companies with good
or improving profit prospects, and aim
primarily at capital appreciation. They
concentrate on future growth prospects,
may be willing to pay high price/earnings
multiples for companies considered to have
high growth potential. In contrast to the
growth investing, some funds follow Value
Investing approach. Value Funds try to
seek out fundamentally sound companies
whose shares are currently under-priced in
the market. Value Funds will add only
those shares to their portfolios that are
selling at low price-earnings ratios, low
market to book value ratios and are
believed to be undervalued compared to
their true potential.
Value Funds take equity market
risks, but stand often at a lower end of the
risk spectrum in comparison with the
Growth Funds. Value Stocks may be from
a large number of sectors and therefore
diversified. However, value stocks often come from cyclical industries. The one example of
a Value Fund in India is Templeton Fund, which has in its portfolio shares of
Cement/Aluminium and other cyclical industries. Prices of such shares may fluctuate more
than the overall market in both bull and bear markets, making such value funds more risky
than diversified funds in the short-term. However, proponents of the Value Investing
recommend it as a long-term approach. In the long-term, Value Funds ought to be less risky
than Growth Funds or even Equity Diversified Funds.
Top performance in Value Funds

Templeton India Growth
Fund - (G)
➢ Scheme Details

Date
315.36 Dr J Mark 09/05/2003 5000 1000

Mobius
➢ Return Summary
6MONTH 1YEAR
Scheme Name 3MONTH
ICICI Pru -12.45 -11.40 8.87
Nifty -2.26 -12.68 23.66
Sensex -3.4 -11.49 23.41
Assests (%)
Sector Value (Rs. /Cr.)

Finance 15.34 49.06
Software 10.09 32.27
Oil/Gas 9.00 28.78

7.56 24.18
Equities
Banks 7.11 22.74
Non Ferrous Metal 5.83 18.64
Transport 3.57 11.41
Others 3.17 10.13

75.4556
18-Jul-08
18-Jun-08 86.4349
18-May-08 93.9191
18-Apr-08 88.1855
18-Mar-08 80.0829
18-Feb-08 92.0738
18-Jan-08 97.9879
18-Dec-07 98.5737
18-Nov-07 100.6162
89.9354
18-Oct-07
18-Sep-07 79.4085
18-Aug-07 70.1119
18-Jul-07 77.8446

a) Equity Income or Dividend Yield
Funds
Usually income funds are in the Debt

Funds category, as they target fixed income
investments. However, there are equity
funds that can be designed to give the
investor a high level of current income
along with some steady capital
appreciation, investing mainly in shares of
companies with high dividend yields. As an
example, an Equity Income Fund would
invest largely in Power/Utility companies'
shares of established companies that pay
higher dividends and whose prices do not
fluctuate as much as other shares. These
equity funds should therefore be less
volatile and less risky than nearly all other
equity funds. Recently many fund houses
have launched such schemes.
Top performance in Dividend Yield

Funds
ICICI Pru Index Fund-Nifty Plan
➢ Scheme Details
838.22 Swati Kulkarni 04/11/2005 5000 1000

➢ Return Summary
6MONTH 1YEAR
Scheme Name 3MONTH
ICICI Pru -10.22 -12.76 6.24
Nifty -2.26 -12.68 23.66
Sensex -3.4 -11.49 23.41
% of
Investment
Company Name Investment Amt (Rs. /Cr.)
Net CA & Others 24.79 207.78

GE Shipping Co 4.14 34.71
ITC 3.92 32.82
GAIL (India) 3.81 31.94
Infosys Tech. 3.63 30.39
Tata Chemicals 3.59 30.12
Sesa Goa 3.51 29.45
3.42 28.67
ONGC
NTPC 3.3 27.66
Guj. Mineral Dev 3.02 25.35
TCS 2.56 21.46
Deepak Fert. 2.16 18.1
Indian Oil 2.08 17.43
ICI (India) 1.89 15.87
Axis Bank 1.8 15.13
1.77 14.8
Tata Power Co.

Chambal Fert. 1.61 13.47
Ranbaxy Labs. 1.56 13.09
St Bk of India 1.39 11.68
Great Offshore 1.39 11.63
Guj. Inds. Power 1.39 11.61
Clariant Chemica 1.36 11.39
0.31 2.63
Tata Steel
18-Jul-08 17.60
18-Jun-08 19.86
18-May-08 21.16
20.55
18-Apr-08
18-Mar-08 18.56
18-Feb-08 22.33
18-Jan-08 24.19
18-Dec-07 24.77
18-Nov-07 25.21
18-Oct-07 22.14
18-Sep-07 19.06
18-Aug-07 17.39
18.31
18-Jul-07
Hybrid Funds - Quasi Equity/Quasi Debt

We have seen that in terms of the
nature of financial securities held, there are
three major mutual fund types: money
market, debt and equity. Many mutual
funds mix these different types of securities
in their portfolios. Thus, most funds, equity
or debt, always have some money market
securities in their portfolios as these
securities offer the much-needed liquidity.
However, money market holdings will
constitute a lower proportion in the overall
portfolios of debt or equity funds. There are
funds that, however, seek to have a
relatively balanced holding of debt and
equity securities in their portfolios. Such
funds are termed "hybrid funds" as they
have a dual equity-bond focus. Some of the
funds in this category are described below.
a) Balanced Funds
A balanced fund is one that has a

portfolio comprising debt instruments,
convertible securities, and preference and
equity shares. Their assets are generally
held in more or less equal proportions between debt/money market securities and equities.
By investing in a mix of this nature, balanced funds seek to attain the objectives of income,
moderate capital appreciation and preservation of capital, and are ideal for investors with a
conservative and long-term orientation.
Top performance in balanced funds
DSP ML Balanced Fund - (G)

➢ Scheme Details

Date
532.58 Apoorva Shah 5/03/1999 5000 1000
➢ Return Summary

DSP ML Ba -9.63 -13.79 1.00
-12.68 23.66
Nifty -2.26
Sensex -3.4 -11.49 23.41
➢ Sectorial Allocation
Sector Assests (%) Value (Rs. /Cr.)

30.09 163.11
Debt
Software 8.67 47
Consumer Non Durables 6.4 34.69
Banks 5.45 29.54
Media & Entertainment 3.35 18.16
Pharma 3.32 17.99
Oil/Gas 3.25 17.61
3.22 17.45
Finance
Fertilizers 2.55 13.82
Chemicals & Others 2.5 13.55
Hotel 2.15 11.65
Others 1.79 9.7
1.51 8.18
Construction & Others

Cement 1.26 6.83
Textile Prod. 0.96 5.2
Gas & Others 0.78 4.22
Non Ferrous Metal 0.74 4.01
Pesticides 0.7 3.79

0.69 3.74
Paper
Indust. Products 0.66 3.57
18-Jul-08 43.3810
47.3890
18-Jun-08
18-May-08 50.0750
18-Apr-08 48.6700
18-Mar-08 45.4360
18-Feb-08 50.6220
18-Jan-08 55.1020
18-Dec-07 55.1500
18-Nov-07 54.4650
18-Oct-07 48.5660
45.8730
18-Sep-07
18-Aug-07 41.6400
18-Jul-07 44.2780

a) Growth-and-Income Funds
Unlike income-focused or growth-

focused funds, these funds seek to strike a
balance between capital appreciation and
income for the investor. Their portfolios
are a mix between companies with good
dividend paying records and those with
potential for capital appreciation. These
funds would be less risky than pure growth
funds, though more risky than income
funds.
b) Asset Allocation Funds
Normally, an Equity Fund would

have its primary portfolio in equities most
of the time. That is, the assets are
primarily equity holdings. Similarly, a
Debt Fund would have allocated much of
its money to debt instruments. The
proportion of money to be invested in a
particular class of asset is predefined. In
other words, their "asset allocation" is predetermined to a large extent.
However, there do exist funds that follow variable asset allocation policies and
move in and out of an asset class (equity, debt, money market, or even non-financial
assets) depending upon their outlook for specific markets. The fund manager is given the
flexibility to shift towards equity when equity market is expected to do well and to shift
towards debt when the debt market is expected to do well. The success of such strategy
would depend on the skill of the fund
manager in anticipating market trends. For
that reason, Asset Allocation Funds could
be riskier.
Top performance in asset allocation

funds
UTI Spread Funds - (G)
➢ Scheme Details

Date
360.33 Harsha Jun 09, 2006 5000 1

Upadhyaya
➢ Return Summary

4.25 8.43
UTI-SPrEA 2.07
Nifty -2.26 -12.68 23.66
Sensex -3.4 -11.49 23.41
➢ Scheme portfolio
0.02 0.07
Bombay Ryn Fash

Omaxe Ltd 0.01 0.05
Wire & Wireless 0.01 0.02
Alstom Projects 0 0.01
18-Jul-08 11.8826
11.8049
18-Jun-08
18-May-08 11.7254
18-Apr-08 11.6498
18-Mar-08 11.5679
18-Feb-08 11.4935
18-Jan-08 11.3655
18-Dec-07 11.2626
18-Nov-07 11.197
18-Oct-07 11.1856
18-Sep-07 11.0728
10.9963
18-Aug-07
18-Jul-07 10.8986

Commodity Funds
While all of the debt/equity/liquid

funds invest in financial assets, the mutual
fund vehicle is suited for investment in
any other- for example - physical assets.
Commodity funds specialize in investing
in different commodities directly or
through shares of commodity companies
or through commodity futures contracts.
Specialized funds may invest in a single
commodity or a commodity group such as
edible oils or grains, while diversified
commodity funds will spread their assets
over many commodities.
A most common example of

commodity funds is the so-called Precious
Metals Funds. Gold Funds invest in gold,
gold futures or shares of gold mines. Other
precious metals funds such as Platinum or
Silver are also available in other countries.
They may take exposure to more than one
metal to get some benefit of
diversification. In India, the Union Finance Minister recently announced a Gold Linked
Unit Scheme - like a Gold Fund. These schemes hold a good potential, given the large
public holding and interest in gold. Similarly, a large number of commodity futures
contracts are now available for trading on commodity exchanges, making it possible to
launch commodity funds.
Real Estate Funds
Specialized Real Estate Funds would invest in real estate directly, or may fund real
estate developers, or lend to them, or buy shares of housing finance companies or may
even buy their securitized assets. The
funds may have a growth orientation or
seek to give investors regular income.
Exchange Traded Funds
An Exchange Traded Fund (ETF) is

a mutual fund scheme, which combines
the best features of open end and closed
end structures. It tracks a market index and
trades like a single stock on the Stock
Exchange. Its pricing is linked to the index
and units can be bought/sold on the Stock
Exchange. ETF offers investor the benefit
of flexibility of holding a single share as
well as the diversification and cost
efficiency of an index. These funds are
popular abroad and have recently been
introduced in India.
Although based on an index, ETFs should not be confused with index funds.
Investors can buy index funds units directly from the asset management company at a
unique Net Asset Value that will be applicable w all investors. ETFs trade on the
exchanges and thus its unit price is determined in the market place and will keep changing
from time to time. ETFs are bought and sold through intermediaries who are generally
market-makers - buying and selling the units with two-way price quotes. These market
makers allow investors to exchange ETF units for underlying shares. This is not possible
in the case of index mutual funds.
Fund distributors should note that
ETF AI\YCs usually do not pay any
commissions to intermediaries, nor
recover any loads from investors. Market
makers keep their margin in the form of
difference in bid and ask prices. For the
investor, therefore, ETFs are less costly
and more efficient in terms of tracking the
index performance. They can even ask for
delivery of underlying shares.
Top performance in Exchange Traded

Funds
UTI-Gold Exchange Traded Fund (G)
➢ Scheme Details
Asset Size (Cr.) Fund Manager Launch Date Min. Inv. Inc. Inv(Rs.)
174.84 Swati Kulkarni 3/1/2007 20000 1

➢ Return Summary
6MONTH 1YEAR
Scheme Name 3MONTH
UTI-Gold 8.63 18.81 52.54

Nifty -2.26 -12.68 23.66
Sensex -3.4 -11.49 23.41
Company Name % of Investment Investment Amt (Rs./Cr.)
Other 99.93 174.72
18-Jul-08 1329.15
18-Jun-08 1227.33
18-May-08 1222.51
18-Apr-08 1231.91
18-Mar-08 1324.55
18-Feb-08 1166.01
18-Jan-08 1114.71
18-Dec-07 1026.41
18-Nov-07 1010.17
18-Oct-07 977.225
18-Sep-07 952.204
18-Aug-07 888.924
18-Jul-07 884.113
➢➢ NAV Of This Scheme

➢ Line Chart of NAV
Fund of Funds
A Fund of Funds invests in other

mutual funds. Just as a normal mutual fund
invests in a portfolio of securities such as
debt or equity, a fund of funds invests in a
portfolio of the units of other mutual fund
schemes. Availability of a fund of funds to
an investor helps him select the right funds
from a wide variety of schemes offered by
different asset management companies. It
also helps the investor diversify his risk
not only in terms of the types of securities held in the portfolio, but also in terms of
schemes of different fund managers and investment styles, For example, a fund of funds
can invest in top performing equity funds of different AMCs and offering most widely
diversified portfolio to the investor. It can also invest in equity and income schemes of
other AMCs simultaneously offering the investor balanced or diversified portfolios across
asset classes. The risk level associated with this type of fund is generally lower than that
of conventional mutual fund schemes. Investors in such funds also enjoy the advantage of
diverse management styles. A fund of funds could, however, result in higher expenses as
the expenses of the AMC that manages the fund of funds get added to the expenses of the
other schemes it invests in.
Top performance in Fund of Funds
ICICI Pru Advisor - Very

Cautious Plan (G)
➢ Scheme Details
Launch Min. Inv. Inc. Inv(Rs.)

Date
3.23 Pankaj Kaji 11/10/2003 50000 1
➢ Return Summary

3.98 8.11
ICICI Pru 2.00

Nifty -2.26 -12.68 23.66
Sensex -3.4 -11.49 23.41

57.97 1.87
ICICI Pru Flexible Income Plan

ICICI Pru Liquid (G) 38.62 1.25

18-Jul-08 13.2242
18-Jun-08 13.1320
18-May-08 13.0416
18-Apr-08 12.9638
18-Mar-08 12.8804
18-Feb-08 12.8035
18-Jan-08 12.7022
18-Dec-07 12.6193
18-Nov-07 12.5439
18-Oct-07 12.4611
18-Sep-07 12.3861
18-Aug-07 12.3045
18-Jul-07 12.2372

Top 10 performing schemes/funds in
mutual funds
I. UTI-Gold Exchange Traded

Fund (G)
➢ Scheme Details
Launch Min. Inv. Inc. Inv(Rs.)

Date

174.84 Swati Kulkarni 3/1/2007 20000 1
➢ Return Summary

UTI-Gold 8.63 18.81 52.54
-12.68 23.66
Nifty -2.26
Sensex -3.4 -11.49 23.41
Other 99.93 174.72

18-Jul-08 1329.15
18-Jun-08 1227.33
18-May-08 1222.51
18-Apr-08 1231.91
18-Mar-08 1324.55
18-Feb-08 1166.01
18-Jan-08 1114.71
18-Dec-07 1026.41
18-Nov-07 1010.17
18-Oct-07 977.225
18-Sep-07 952.204
18-Aug-07 888.924
18-Jul-07 884.113

I. DBS Chola Monthly Income
Plan (G)
➢ Scheme Details

Date

22.84 Ashish Nigam 7/27/1998 5000 1000
➢ Return Summary
DBS Chola -3.67 0.21 21.92

-12.68 23.66
Nifty -2.26
Sensex -3.4 -11.49 23.41

Develop.Cr.Bank 41.81 9.55
Yes Bank 14.54 3.32
11.57 2.64
Cash & Bank Balance

HDFC 10.59 2.42
Videocon Inds. 1.14 0.26

0.91 0.21
BHEL
Indian Overseas 0.87 0.2
GMR Infra. 0.7 0.16
Hind. Construct. 0.7 0.16
Power Fin. Corp. 0.67 0.15
0.59 0.13
Nag. Construct.
Patel Engg. 0.48 0.11
Century Textiles 0.45 0.1
Spice Jet 0.44 0.1
Kotak Mah. Bank 0.4 0.09
0.24 0.05
Great Offshore
Uni.Brew. (Hold.) 0.11 0.02
HDFC Bank 0.1 0.02
Zee Entertainment 0.04 0.01
16.5224
18-Jul-08
18-Jun-08 16.9801
18-May-08 17.31
18-Apr-08 17.0502
18-Mar-08 16.3731
18-Feb-08 16.6307
18-Jan-08 16.2386
18-Dec-07 14.781
18-Nov-07 14.3342
13.8695
18-Oct-07
18-Sep-07 13.4992
18-Aug-07 13.3783
18-Jul-07 13.4685

I. Taurus Libra Tax shield (G)
➢ Scheme Details

Date

13.18 Nitish Ojha 1/1/1996 500 500
➢ Return Summary
Taurus Li -11.76 -19.37 19.19

-12.68 23.66
Nifty -2.26
Sensex -3.4 -11.49 23.41

MMI-Others 18.51 2.44
Bihar Tubes 12.13 1.6
8.83 1.16
Orchid Chemicals
3i Infotech 7.04 0.93
Reliance Capital 6.71 0.88
Net 4 India 4.42 0.58
JSW Steel 4.41 0.58

4.15 0.55
Infra.Devlp.Fin
Jaiprakash Hydro 3.9 0.51
Mangalore Ref. 3.75 0.49
PVR 3.27 0.43
Electrost.Cast. 3.11 0.41
J K Cements Ltd 2.98 0.39
2.61 0.34
Guj. NRE Coke

Jay Engineering 2.09 0.28
IFCI 1.98 0.26
Siemens 1.21 0.16
Tata Tele service 1.19 0.16
Reliance Power 0.93 0.12
0.71 0.09
Rural Elec. Corp

Facor Steels 0.59 0.08
➢ Previous Dividend
Dividend Date Dividend (%)
Sep 26 2003 11
Feb 27 2004 16
Feb 8 2002 3
35
Dec 23 2005

18-Jul-08 23.27
18-Jun-08 25.8
18-May-08 28.52
18-Apr-08 27.12
18-Mar-08 22.3
18-Feb-08 29.86
18-Jan-08 33.06
18-Dec-07 33.71
18-Nov-07 31.29
18-Oct-07 24.2
18-Sep-07 22.59
18-Aug-07 18.95
18-Jul-07 20.41
I. Reliance Diversified Power

Sector (G)
➢ Scheme Details
4577.05 Sunil Singhania 3/29/2004 5000 1
➢ Return Summary
6MONTH 1YEAR
Scheme Name 3MONTH
Reliance -15.59 -24.62 19.13
Nifty -2.26 -12.68 23.66
Sensex -3.4 -11.49 23.41
Investment
Company Name
Net CA & Others 30.13 1379.07
Other Equities 9.24 422.92
Jindal Steel 4.48 205.05
3.6 164.77
BHEL
Torrent Power 2.7 123.58
Siemens 2.01 92
1.83 83.76
Crompton Greaves
Cummins India 1.73 79.18
ABB 1.72 78.73
PTC India 1.7 77.81
Voltamp Trans 1.58 72.32
Kirl. Brothers 1.58 72.32
1.35 61.79
Rural Elec. Corp

NTPC 1.33 60.87
Jindal Stainless 1.29 59.04
Bajaj Electrical 1.16 53.09
EMCO 1.13 51.72
Areva T&D 1.07 48.97
53.5977
18-Jul-08
18-Jun-08 59.6168
18-May-08 66.53
18-Apr-08 64.9958
18-Mar-08 60.5071
18-Feb-08 71.2474
18-Jan-08 79.6509
18-Dec-07 76.2487
18-Nov-07 76.9007
63.5594
18-Oct-07
18-Sep-07 52.0871
18-Aug-07 46.2595
18-Jul-07 46.1384

I. Birla Sun Life Dynamic Bond
Fund Retail (G)
➢ Scheme Details

Date

1027.95 Maneesh Dangi 9/10/2004 5000 1000
➢ Return Summary

Birla Sun 2.24 4.80 10.92
-12.68 23.66
Nifty -2.26
Sensex -3.4 -11.49 23.41
Pun. Natl. Bank 29.19 300.06

22.19 228.09
HDFC
State Bank of India 19.17 197.08
Reliance Capital 8.42 86.58
Kalpataru Power 7.3 75
Karnataka Bank 4.78 49.18

2.14 21.97
IDBI Home finance

UCO Bank 1.64 16.86
18-Jul-08 13.0379
18- 12.9384
Jun-08
18-May-08 12.8615
18-Apr-08 12.7438
18-Mar-08 12.6385
18-Feb-08 12.5521
18-Jan-08 12.4409
18-Dec-07 12.2071
18-Nov-07 12.0988
18- 12.0104
Oct-07
18-Sep-07 11.9313
18-Aug-07 11.8499
18-Jul-07 11.757

I. ING Income Fund Inst (G)
➢ Scheme Details

Date

22.85 Amit Shewale 3/10/2003 2500000 100000
➢ Return Summary
ING Incom 1.61 1.51 10.58

-12.68 23.66
Nifty -2.26
Sensex -3.4 -11.49 23.41

16.51 3.77
UCO Bank
Chola mandalam DB 16.04 3.67
Tata Tea 4.28 0.98

21.6824
18-Jul-08
18-Jun-08 21.5681
18-May-08 21.4098
18-Apr-08 21.3499
18-Mar-08 21.1668
18-Feb-08 21.1977
18-Jan-08 21.1588
18-Dec-07 20.3467
18-Nov-07 20.1858
18-Oct-07 20.0438
19.8927
18-Sep-07
18-Aug-07 19.7145
18-Jul-07 19.4204

I. LICMF FMP: Series 22 -
16Mth (G)
➢ Scheme Details

Date

0 Ashish Kumar 4/16/2007 10000 1000
➢ Return Summary

LICMF FMP 2.61 5.09 10.55
-12.68 23.66
Nifty -2.26
Sensex -3.4 -11.49 23.41
18-Jul-08 11.3135
18-Jun-08 11.2168
18-May-08 11.1057
18-Apr-08 11.0174
10.93
18-Mar-08
18-Feb-08 10.85
18-Jan-08 10.7533
18-Dec-07 10.6597
18-Nov-07 10.5717
18-Oct-07 10.4762
18-Sep-07 10.3881
18-Aug-07 10.2928
18-Jul-07 10.2301
I. Principal Monthly Income

Plus - (G)
➢ Scheme Details

Date

98.42 Pankaj Tibrewal 12/30/2003 5000 500
➢ Return Summary
Principal -1.36 -3.07 10.51

-12.68 23.66
Nifty -2.26
Sensex -3.4 -11.49 23.41

7.11 7.00
JM Financial Pro
ABN Amro Bank NV 6.83 6.72
UCO Bank 5.63 5.54
St Bk of Patiala 5.55 5.46
L&T Finance 5.02 4.94
St Bk of Bikaner 4.96 4.88
LIC Housing Fin 4.88 4.80
4.81 4.73
Power Fin. Corp.

IDBI Bank 4.68 4.61
Vijaya Bank 4.68 4.61
E X I M Bank 4.35 4.28
Federal Bank 3.81 3.75
Axis Bank 2.86 2.81
St Bk of Mysore 2.30 2.26
2.04 2.01
2.04
GSEC2032 1.78 1.75
Kotak Mahindra P 1.66 1.63
Power Grid Corp. 1.44 1.42
Unspecified PTC 1.03 1.01
Tata Motors Fin 1.01 0.99
1.00 0.98
Indian Rail Fin

CRISIL 0.90 0.89
Numeric Power Sy 0.84 0.83
Pantaloon Retail 0.58 0.57
BHEL 0.54 0.53
ICRA 0.50 0.49
0.50 0.49
Rallis India
SAIL 0.50 0.49
Titagarh Wagons 0.50 0.49
Jay Shree Tea 0.46 0.45
Chennai Petroleu 0.39 0.38
Grasim Inds. 0.39 0.38
0.39 0.38
Jaiprakash Assoc
Sagar Cements 0.39 0.38
Sintex Inds. 0.39 0.38
ABG Shipyard 0.38 0.37
Balmer Lawrie 0.38 0.37
JM Financial 0.37 0.36
Bajaj Holdings 0.35 0.34
0.34 0.33
Adhunik Metal
Union Bank (I) 0.33 0.32
Gillette India 0.27 0.27
RPG Cables 0.27 0.27
Indian Bank 0.26 0.26
Revathi Equipmnt 0.24 0.24
Kalyani Steels 0.22 0.22
0.19 0.19
Ashapura Minech.
Binani Inds. 0.16 0.16
Ineos ABS (India 0.12 0.12
Kirl. Electric 0.09 0.09

18-Jul-08 14.7742
18-Jun-08 15.1150
20-May-08 15.2306
17-Apr-08 14.9929
18-Mar-08 14.6197
18-Feb-08 15.2698
18-Jan-08 15.6715
18-Dec-07 15.5286
19-Nov-07 15.1712
18-Oct-07 14.3292
18-Sep-07 13.8776
17-Aug-07 13.3906
18-Jul-07 13.4642
I. Escorts Gilt Fund (G)
➢ Scheme Details
0.08 Sanjee Sharma 02/19/2001 1000 1000
➢ Return Summary

4.46 10.45
Escorts Gilt Fund 7.67
Nifty -2.26 -12.68 23.66
Sensex -3.4 -11.49 23.41

45.32 0.04
GSEC
GSEC2012 38.51 0.03
Net CA & Other 16.15 0.01
TAMILNADU SD 0.02 0
18-Jul-08 12.20
18-Jun-08 12.10
18-May-08 12.01
18-Apr-08 11.92
18-Mar-08 11.84
18-Feb-08 11.75
18-Jan-08 11.68
18-Dec-07 11.60
18-Nov-07 11.52
18-Oct-07 11.44
18-Sep-07 11.36
18-Aug-07 11.27
18-Jul-07 11.19

I. Lotus India FMP - Sr.I -
375Days - Inst (G)
➢ Scheme Details

Date

127.11 Umesh Sharma 06/08/2007 5000000 1
➢ Return Summary

Lotus India 2.31 4.69 9.98
-12.68 23.66
Nifty -2.26
Sensex -3.4 -11.49 23.41
Company Name % of Investment Investment Amt

(Rs. /Cr.)
19.32 24.56
Hong kong & Shang

Edelweiss Sec 15.42 19.60
Religare Fin 11.79 14.99
St Bk of Saurash 3.89 4.95
2.15 2.73
Net CA & Others

Kotak Mahindra P 1.18 1.50
First Leasing 1.18 1.50
Lotus India Liquid Fund - Inst 0.94 1.20

25- 11.0338
Ju
n -08
18- 11.0002
Jun-08
18-May-08 10.9139
18-Apr-08 10.8378
18-Mar-08 10.7590
18-Feb-08 10.6822
18-Jan-08 10.5982
18-Dec-07 10.5122
18-Nov-07 10.4446
18- 10.3636
Oct-07
18-Sep-07 10.2656
18-Aug-07 10.1888
18-Jul-07 10.1369
Top 10 mutual funds allocation on the

basis of time period
Scheme 3Months 6Months 1 year

Return Return Return
UTI-Gold Exchange Traded Fund (G) 8.63 18.81 52.54
DBS Chola Monthly Income Plan (G) -3.67 0.21 21.92
-11.76 -19.37 19.19
Taurus Libra Tax shield (G)

Reliance Diversified Power Sector (G) -15.59 -24.62 19.13
Birla Sun Life Dynamic Bond Fund - Retail 2.24 4.80 10.92
(G)
ING Income Fund - Inst (G) 1.61 1.51 10.58
LICMF FMP: Series 22 - 16Mth (G) 2.61 5.09 10.55
-1.36 -3.07 10.51
Principal Monthly Income Plus - (G)

Escorts Gilt Fund (G) 7.67 4.46 10.45
Lotus India FMP - Sr.I - 375Days - Inst (G) 2.31 4.69 9.98
Nifty -2.26 -12.68 23.66

Sensex -3.4 -11.49 23.41
Column chart of Top 10 mutual funds
CONCLUSION
These are the best conclusion on this

report.
Mutual funds are no risk instrument

as compare with shares.
Mutual funds are best instrument for

stable return.
If u want secure your money, invest

in mutual fund behalf of shares.
Now stock markets are higher

volatile as compare with mutual
funds. So, I suggest to new or safer investor to invest in mutual funds for
stable return.
RECOMMENDATIONS
The following are the recommendations

suggested by the researcher after
undertaking this project study:-
➢ TO THE COMPANY:
The company has already
established its presence in
Maharashtra, Andhra Pradesh, Karnataka, Madhya Pradesh, Gujarat and West
Bengal; it should expand its business into Uttaranchal, Chhattisgarh,
Rajasthan, Tamil Nadu and Orissa.

The software ‘POWER TRADE’
which is used by the company for
ticker plan doesn’t work fast and
doesn’t update price quickly, so the
company should work out on that.
The company should focus on rural
areas.
➢ TO THE STOCKMARKET:
A major topic of discussion in the
equity market, internationally, is the
move to T+1. Once RBI obtains some progress on the payments system, we
will need to sequence the movement from T+2 down to T+1.
The most important challenge before SEBI today lies in dealing with market
misconduct. The crises from 1992 onwards have been matched by poor
responses in terms of investigation and enforcement. SEBI has yet to develop

the institutional capacity for honest
and efficient treatment of the
difficult problems of detection,
investigation and enforcement
against fraudulent secondary market
practices. In the debt market, we
need to widen the investor base by
bringing in retail and non-bank
investors – this can be a key
measure for adding depth to
the gilts market. To this end,
satellite dealers, when they become
operational, and banks, with their
retail branch network, have
important roles to play.
The other types of derivatives should be introduced in the stock market.

BIBLIOGRAPHY
BOOKS:
➢ AMFI Mutual Fund Testing

Programme, D. C. Anjaria,
Third Edition, May 2006.
➢ Financial Markets: A
Beginners' Module, NSE’s
Certification in Financial
Markets.
Websites:
➢ http://www.reliancemoney.co
m/MutualFund/SnapshotHome.aspx
➢ http://www.geojit.com/mutual/mf_schemepro.asp?index=4&a=4
➢ http://www.mutualfundsindia.com

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1.

Why should one invest?

One of the important reasons why

When to start Investing?

What care should one take while investing?

What is meant by Interest?

What factors determine interest rates?

What are various options available for

What are various Short-term financial options available for investment?

What are various Long-term financial options available for investment?

Post Office Savings:

What is meant by a Stock Exchange?

What is a ‘Debt Instrument’?

What is a Mutual Fund?

During last few years or so,

DEFINE THE PROBLEM

DEFINE RESEARCH DESIGN

ANALYSIS THE INFORMATION

The primary object of the present

• To know about types of

➢ BENEFITS OF THE STUDY

The project provided researcher the following benefits:

• The primary data.

Primary data is the data

These limitations that the researcher

A mutual fund is a professionally

A Mutual Fund is a body corporate

The net asset value, or NAV, is the

Advantage of Mutual Funds

Mutual funds normally invest

II. Profession management

Even if an investor has a big

An investor in a mutual fund acquired a diversified portfolio, no matter how

What is true of risk is also

Often, investors hold shares

Mutual funds provide

II. Misleading Advertisements

The misleading advertisements of different funds can guide investors down

Open-end Vs. Closed-end Funds

An open-end fund is one that sells

Load and No-load Funds

These charges imposed on the

This limit currently stands at 6%,

Generally, when a fund invests in

Top performance in Tax-exempt funds

Taurus Libra Tax shield (G)

Min. Inv Inc. Inv(Rs.) Tax benefits

Asset Size (Cr.) Fund Manager Launch Date

13.18 Nitish Ojha 01/01/1996 500 500 112(1), 94(7),

Scheme Name 3MONTH

Taurus Li -11.76 -19.37 19.19

Nifty -2.26 -12.68 23.66

Sensex -3.4 -11.49 23.41

➢ NAV Of This Scheme

➢ Line Chart Of NAV

Money Market/Liquid Funds

Top performance in Liquid Funds

Escorts Liquid Plan (G)

Launch Min. Inv Tax benefits

Asset Size (Cr.) Fund Manager

7.21 Sanjee Sharma 27/09/2005 1000 112(1), 94(7),

Scheme Name 3MONTH 6MONTH 1YEAR

Escorts Liquid Plan 2.32

Sensex -3.4 -11.49 23.41