MUTUAL FUND

PRESENTED BY :- GROUP K

SUMIT AGARWAL 117

SWANAND SHINDE 118
SWAPNIL KOLI 119
TANMAY DEODHAR 120

Mutual Funds 7-Nov-2010

 Flow Of The Presentation
2

Introduction

History

Overview of Mutual Funds

Ratios

Examples

Conclusion

Mutual Funds 7-Nov-2010

 MUTUAL FUND
3

A Mutual Fund is a trust that pools the savings of a

number of investors who share a common financial
goal.
These investors buy units of a particular Mutual
Fund scheme that has a defined investment
objective and strategy.
Collected Money invested by the Fund Manager in
different type of securities.
These could range from shares to debentures to
money market instruments, depending upon the
schemes stated objectives.
Mutual Funds 7-Nov-2010
 HISTORY OF THE INDIAN MUTUAL FUND
INDUSTRY
4

Started in 1963 with the formation of Unit Trust of

India
Accelerated from the year 1987 when non-UTI players
entered the Industry

First Phase – 1964-87

Second Phase – 1987-1993 (Entry of Public
Sector Funds)
Third Phase – 1993-2003 (Entry of Private
Sector Funds)
Fourth Phase – since February 2003

Mutual Funds 7-Nov-2010

 Process:
5

Mutual Funds 7-Nov-2010

 Why Invest In Mutual Funds?
6

Park surpluses

Short term Investment

Easy Liquidity

Tax benefits

Mutual Funds 7-Nov-2010

 TYPES OF MUTUAL FUND SCHEMES
7

 BY STRUCTURE
1. Open - Ended Schemes
2. Close - Ended Schemes
3. Interval Schemes
 BY INVESTMENT OBJECTIVE
1. Growth Schemes
2. Income Schemes
3. Balanced Schemes
4. Money Market Schemes
 BY NATURE
1. Equity fund
2. Debt funds
3. Balanced funds

Mutual Funds 7-Nov-2010

 Terms used in risk analysis
8

Beta
 Measures the market risk of funds.
 Beta>1, fund is more sensitive or volatile than the market
movement
 Beta<1, fund is less volatile than the market movement.
Standard Deviation
 Shows variability in the returns from the mean returns.
Therefore considered to be direct measure of risk.

Mutual Funds 7-Nov-2010

 9

Mutual Funds 7-Nov-2010

 10

Sharpe Ratio
 It shows the return per unit of risk that a fund is able to
generate.
 Sharpe = Rp – Rf
σ
Treynor Ratio
 It shows risk adjusted returns per unit of market risk.
 Treynor = Rp - Rf
β

Mutual Funds 7-Nov-2010

 EQT Small Companies Fund
Top 10 Holding Type % of
Portfolio Holdings
Lynas Corporation Ltd Stock 7.92 5%

Integra Mining Limited Stock 5.91

Resolute Mining Limited Conv. Stock 5.80
Note
Coote Industrial Ltd Stock 4.94
Kingsgate Consolidated Limited Stock 4.86
Red 5 Limited Stock 4.79
Mesoblast Ltd Stock 4.69
Sirtex Medical Limited Stock 4.31 95%

CSG Limited Stock 4.25

The MAC Services Group Stock 3.92
Limited
Domestic Shares
Cash
 Birla Sun Life Midcap Fund

Top 10 Holding Type % of Holdings

Portfolio
4%
Shriram TransFi Stock 3.71
YES BANK Stock 3.62
Exide Industries Stock 3.54
GlaxoSmith Con Stock 3.21
Cummins Stock 3.06
Castrol Stock 2.91
United Phos Stock 2.69
96%
Aurobindo Pharm Stock 2.68
Allahabad Bank Stock 2.51
Stock
Ashok Leyland 2.46

Equity Debt Cash

 Small /Mid Cap Funds
70.00%
62.70%
60.00%
50.00%
40.00% 35.60%

30.00% 27.30%
25.30%
22.65% EQT Small Companies
20.00% 14.33% Fund
13.20%
10.00%
9.20% Birla Sun Life Midcap
4.44%
3.90% 3.76% Fund
0.00%
-10.00% -7.11%

-20.00%
nth nth e ar e ar e ar it o
n
o o 1 Y Y Y p
M M 3 5 c e
1 3 In
ce
n
Si
 Ratio Comparison

Fund EQT Small Companies Birla Sun Life Midcap

Fund Fund - Plan A (G)
Mean 11.1 11.8
SD 13.4 9.4
Beta 0.66 0.9
Sharp 4.14 6.24
Treynor 83.9 64.6
MLC MKey InvSer/UT Aust Sh Gr Style Fund

Top 10 Holding Type % of

Portfolio Holdings
BHP Billiton Limited Stock 7.92
1% 1%
National Australia Bank Limited Stock 5.91
Australia & New Zealand Stock 5.80
Banking Grp
CSL Limited Stock 4.94
Westpac Banking Corporation Stock 4.86
Commonwealth Bank of AUS Stock 4.79
Woolworths Limited Stock 4.69
Telstra Corporation Limited Stock 4.31 97%

Rio Tinto PLC Stock 4.25

QBE Insurance Group Limited Stock 3.92

Domestic Shares
International Shares
Cash
 Principal Large Cap Fund

Top 10 Holding Type % of

Portfolio Holdings
2%
Reliance Stock 5.22
Infosys Stock 5.06
SBI Stock 4.17
Allahabad Bank Stock 3.71
HDFC Bank Stock 3.61
ICICI Bank Stock 3.58
Larsen Stock 3.45
ITC Stock 3.11
98%
ONGC Stock 3.09
Cipla Stock 2.97

Equity Cash
 Large Cap Fund
40.00%
36.50%
35.00% 33.00%

30.00%
26.20%
25.00%
20.00%
14.60%
15.00%
MLC MKey InvSer/UT
9.62%
10.00% 7.01% Aust Sh Gr Style Fund
5.70%
5.11%
5.00%2.10%
2.90% 1.78% Principal Large Cap Fund

0.00%
-5.00%
-6.30%
-10.00%
nth nth e ar e ar e ar it o
n
o o 1 Y Y Y p
M M 3 5 c e
1 3 In
ce
n
Si
 Ratio Comparison

Fund EQT Small Companies Birla Sun Life Midcap

Fund Fund - Plan A (G)
Mean -0.8 12.3
SD 5.5 11.2
Beta 1.0 0.8
Sharp -0.8 5.5
Treynor -4.2 75.5
 Perpetual Wholesale Property Income Fund

Top 10 Holding Type % of

Portfolio Holdings
Australand Wholesale Property Stock 17.31 2% 1%
Fund No 6
Goodman Australia Industrial Stock 11.34
Fund
27%
Perpetual Property Fund Stock 8.35

GPT Group Stock 7.86

Westfield Group Stock 7.20
Mirvac Wholesale Hotel Fund Stock 6.82 71%
Stockland Stock 5.44
Mirvac Group Stock 4.25
Mirvac Real Estate Investment Stock 3.46
Trust
CFS Retail Property Trust Stock 2.99
Domestic Shares
Cash
Infrastructure
Others
 Tata Infrastructure Fund (G)

Top 10 Holding Type % of

Portfolio Holdings
1%
SBI Stock 4.76
HDFC Bank Stock 4.68
ONGC Stock 4.67
BHEL Stock 4.49
Larsen Stock 4.42
Voltas Stock 4.32
ICICI Bank Stock 4.27
LIC Housing Fin Stock 4.03
99%
Crompton Greave Stock 3.95
Rural Elect Corporation Stock 3.93

Equity Cash
 Infrastructure Funds
40.00%

30.00% 28.70%
24.50% 24.00%

20.00%
11.90%
10.00%
3.90%
Perpetual Wholesale
0.00%
0.60%
1.99% 1.36% Property Income Fund
0.00% Tata Infrastructure Fund
-1.30%
-3.57%

-10.00%

-17.04%
-20.00%
nth nth e ar e ar e ar it o
n
o o 1 Y Y Y p
M M 3 5 c e
1 3 In
c e
n
Si
 Ratio Comparison

Fund Perpetual Wholesale Tata Infrastructure

Property Income Fund Fund (G)
Mean -5.0 7.5
SD 8.4 10.7
Beta 1.3 0.9
Sharp -3.0 3.5
Treynor -18.6 43.8
 BlackRock P Inv Global Allocation

Top 10 Holding Type % of

Portfolio Holdings
US Treasury Bill Cash - T-Bill 6.56
US Treasury Bill Cash - T-Bill 4.17
US Treasury Bill Cash - T-Bill 3.24
31%
US TREASURY BILL Cash - T-Bill 3.03
US Treasury Note Bond - TIPS 1.64
SPDR Gold Shares Mutual Fund 1.54 66%
(ETF)
3%
United States Treas Bills Cash - T-Bill 1.51
US Treasury Note 2.375% Bond - TIPS 1.31
Japan(Govt Of) 0.8032% Bond - Treasury 1.03
(Non-US)
Petroleo Brasileiro S.A. Stock 0.99

Shares Cash FD
 BNP Paribas Flexi Debt Fund
Top 10 Holding Type % of
Portfolio Holdings
7.80% Government of India Debt
(2020) 19.54 0%
Debt 18%
SREI Equipment Finance Pvt Ltd 14.36
HDFC Bank Ltd. Debt 12.91
National Aviation Co of India Debt 11.95
Shriram Transport Finance Co Debt
Ltd. 6.18
Shriram Transport Finance Co Debt
Ltd. 5.66 82%
Gemini Industries & Imaging Pvt Debt
Ltd 3.95
I L & F S Ltd. Debt 1.99
Power Finance Corporation Debt
Limited 1.99
DEBT Cash
I L & F S Ltd. Debt 1.97
Money Market
 Debt Fund
16.00%

14.00% 13.49%

12.00%
10.40% 10.40%
10.00% 9.30%

8.00% 7.25%
6.60%

6.00% 5.20% BlackRock P Inv

4.90%
Global Allocation
4.00% (Aus) (Class C)

2.00% 1.60% 1.50%

BNP Paribas Flexi
0.82%
0.10% Debt Fund
0.00%
nth nth e ar e ar e ar it o
n
o o 1 Y Y Y p
M M 3 5 ce
1 3 In
ce
n
Si
 Ratio Comparison

Fund Perpetual Wholesale Tata Infrastructure

Property Income Fund Fund (G)
Mean -5.0 -.76
SD 8.4 4.5
Beta 1.3 -.01
Sharp -3.0 -.8
Treynor -18.6 300
Thank You…