Setting Up an Initial Benchmark

For a New Mutual Fund

In partial fulfillment of the Dissertation

In Semester - IV of the Master of Business Administration

Prepared by
VAVILA VIDHYA SAGAR
Registration No: 15010121107

Under the Guidance of Dr. NITHYANANDA PATEL

 Master of Business Administration

Declaration

This is to declare that the report entitled Setting Up an Initial Benchmark For a
New Mutual Fund is prepared for the partial fulfillment of the Dissertation
course in Semester IV of the Master of Business Administration by me under the
guidance of Dr. Nithyananda patel

I confirm that this dissertation truly represents my work. This work is not a
replication of work done previously by any other person. I also confirm that the
contents of the report and the views contained therein have been discussed and
deliberated with the faculty guide.

Signature of the Student :

Name of the Student :VAVILA VIDHYA SAGAR

Registration No :15010121107
 Master of Business Administration

Certificate

This is to certify that Mr.VAVILA VIDHYA SAGAR Regn. No. 15010121107 has
completed the dissertation titled Setting Up an Initial Benchmark For a New
Mutual Fund under my guidance for the partial fulfillment of the Dissertation
course in Semester IV of the Master of Business Administration.

Signature of Faculty Guide:

Name of the Faculty Guide: Dr. Nithyananda Patel

 CONTENTS
Page.No
Executive Summary 1
Chapter 1 2
Chapter 2 5
Chapter 3 6
Chapter 4 7
a)Data Analysis 7
b)Findings 28

Reccomendations 33
Conclusions 34
 List Of Tables
Table No Page No
4.1:Franklin India Oppurtunities Funds 7
4.2:Performance 7
4.3:JP Morgan India Equity Fund 7
4.4:Performance 8
4.5:JM Equity Fund (G) 8
4.6:Performance 8
4.7:SBI Magnum Multicap Fund (G) 9
4.8:Performance 9
4.9:Birla Sun Life Equity Fund (G) 9
4.10:Performance 10
4.11:SBI Magnum Multiplier Fund (G) 10
4.12:Performance 11
4.13:DSP BlackRock Micro Cap Fund - Regular Plan (G) 11
4.14:Performance 11
4.15:Reliance Small Cap Fund (G) 12
4.16:Performance 12
4.17:Sundaram Select Midcap - Regular Plan (G) 12
4.18:Performance 13
4.19:SBI Infrastructure Fund - Series I (G) 14
4.20:Performance 14
4.21:Franklin Build India Fund (G) 15
4.22:Canara Robeco Infrastructure (G) 16
4.24:Performance 16
4.25: SBI Blue Chip Fund (G) 15
4.26:Performance 15
4.27:UTI Equity Fund (G) 16
4.28:Performance 16
4.29:ICICI Prudential Dynamic Plan (G) 17
4.30:Performance 17
4.31:Reliance Index Fund - Nifty Plan (G) 18
4.32:Performance 18
4:33:Kotak Nifty ETF 18
4.34:Performance 18
4.35:IDBI Nifty Index Fund (G) 19
4.36:Performance 19
4.37:Franklin India Balanced Fund (G) 19
4.38:Performance 19
4.39:Tata Balanced Fund - Regular Plan (G) 20
4.40:Performance 20
4.41:ICICI Prudential Balanced Fund (G) 20
4.42:Performance 21
4.43:HSBC Monthly Income Plan - Savings Plan (G) 21
4.44:Performance 21
4.45:Franklin India Monthly Income Plan (G) 22
4.46:Performance 22
4.47:Reliance Monthly Income Plan (G) 22
4.48:Performance 22
4.49:Tata Gilt Mid Term Fund (G) 23
4.50:Performance 23
4.51:L&T Gilt Fund (G) 23
4.52:Performance 24
4.53:Reliance Gilt Securities Fund - Retail Plan (G) 24
4.54:Performance 24
4.55:Birla Sun Life Income Plus - Retail (G) (Plan B) 25
4.56:Performance 25
4.57:BNP Paribas Flexi Debt Fund - Regular Plan (G) 25
4.58:Performance 25
4.59:HDFC High Interest Fund - Dynamic Plan (G) 26
4.60:Performance 26
4.61:Birla Sun Life Income Plus - Retail (G) (Plan B) 26
4.62:Performance 27
4.63:IDFC Dynamic Bond Fund - Regular Plan (G) 27
4.64:Performance 27
4.65:UTI Bond Fund (G) 27
4.66:Performance 28
4.67:Large Cap-oriented Equity funds Industry Averages 28
4.68:Diversified Equity funds Industry Averages 29
4.69:Small and Mid-cap Equity funds Industry Averages 29
4.70:Thematic funds Industry Averages 29
4.71:Consistent Performers - Equity funds Industry Averages30
4.72:Index funds Industry Averages 30
4.73:Balanced funds Industry Averages 30
4.74:Monthly Income Plan - Aggressive Industry Averages 31
4.75: Long Term Gilt funds Industry Averages 31
4.76:Long Term Income funds Industry Averages 32
4.77:Consistent Performers - Debt funds Industry Averages 32
 Excecutive Summary

The concept of mutual funds in India started back in 1963 with the formation of
UTI(United Trust Of India) by the backing of Government of India and RBI.It was
setup by an act in the parliament.In 1978 UTI was delinked from RBI and the
administration had shifted to Industrial Development Bank Of India.

In 1987 the first non UTI based mutual fund schemes are offered by SBI,PNB and
various public sector banks.The industry was growing at an exponential rate.By
1993, the total value of assets of the industry is over Rs 47000 Cr.

Because of the success in mutual fund industry private AMCs were also interested
to join the market.Although UTI was the only AMC that is registered with the
government.New AMCs entered the market and it dawned a new era in Indian
investment industry.Frankling Templeton was the first private AMC to open a
mutual fund in July 1993.

Now as the market grew larger a separate governing body(SEBI) was formed to
regulate and protect the investors from fraudulent activity.

In 2016 there are about 43 AMCs provide mutual fund services and about 12000
schemes with a total asset under management of about Rs135912187.2Crores.With
such a high competition in the industry its really hard for the fund manger to find
the correct benchmark that needs to be set of his scheme that is going to opened in
future.

So before starting the fund its better to set the initial expected performance
benchmark and then design the investment strategy and sector composition
depending upon it.

To calculate the benchmark we will take a few performance ratios into

consideration like Sharpe Ratio,Treynors Ratio,Jensons Alpha,Sortino
Ratio,Information Ratio and Regression Analysis.The ratios will be calculated for
last 3 years and averages of it will be considered.

To select the mutual funds first we will select the classes of mutual funds
like.Large Cap-oriented Equity funds,Diversified Equity funds,Small and Mid-
cap,Equity funds,Thematic - Infrastructure funds,Consistent Performers - Equity

1
funds,Index funds,Balanced funds,Monthly Income Plan Aggressive,Long Term
Gilt funds,Long Term Income funds,Consistent Performers - Debt funds.
From each class 3 schemes will be taken for analysis and the ratios will be found
out and at the end the results will be recorded in an excel sheet similar to the
following.

Now this is final result that the fund manager will take into consideration and
makes the appropriate decisions thats needs to be taken.

2
 Chapter 1

Introduction:
Mutual Fund is one of the tools in investment markets.It pools the corpus funds
from various investors and the representative of the mund i.e fund manager will
manage the investment structure of the fund according to the will and wishes of the
investors.
But first to build a corpus the AMC has to market its fund and has to build up the
investment structure without any idea about their potential investors.This paper
address this issues about by giving one of the ways to build the investment
structure and also by considering the various performance measurement ratios like
Sharpe Ratio,Treynors Ratio,Jensons Alpha,Sortino Ratio,Information Ratio and
Regression Analysis.
As the fund has to previous performance index ,this paper is useful to build a base
performance ratios for the fund and then build the structure according to these
ratios and the wishes of the investors.
Problem Definition:
When UTI first launched its first mutual fund in India ,it has monopoly over the
market and as the market had no other players and because of that performance of
mutual funds was not in the lime light and the growth of the industry was
stagnated.
In 1987,the government allowed other players to enter into the industry and thus it
started immense competition with better growth in the industry.Now the industry is
so competitive that the number of players in the industry has become a major entry
barrier and there are no domestic AMC entries,most of them are from large
international AMCs like BNP Paribas,Franklin Templeton,JP Morgan etc.
So in this environment its difficult for an AMC to start its mutual fund with no
prior experience.They may collect primary data from a representative sample but
its wont always give the exact picture.So this technical analysis will be useful to
bridge the gap between the results from the primary data and intended strategy for
the mutual fund.

Objective:
To develop a model that will help the fund magers who are just about to start a new
mutual fund scheme.This not only helps in setting up the expectation for the
performance of the fund but also bridges the gap between the intended strategy and
expected strategy.

3
Limitations of the study:
As this is a sample model it wont give the exact representative benchmark but this
can be applied in a larger scale with some limitations.
These are the limitations
When all the schemes are considered ,each scheme has its own objective and
aim so it wont concur with the our own objective
Each AMC has their goals and different expense ratios.

4
 Chapter 2
Abstract:

This article develops and applies new measures of portfolio performance which use
benchmarks based on the characteristics of stocks held by the portfolios that are
evaluated. Specifically, the benchmarks are constructed from the returns of 125
passive portfolios that are matched with stocks held in the evaluated portfolio on
the basis of the market capitalization, book-to-market, and prior-year return
characteristics of those stocks. Based on these benchmarks, "Characteristic
Timing" and "Characteristic Selectivity" measures are developed that detect,
respectively, whether portfolio managers successfully time their portfolio
weightings on these characteristics and whether managers can select stocks that
outperform the average stock having the same characteristics. We apply these
measures to a new database of mutual fund holdings covering over 2500 equity
funds from 1975 to 1994. Our results show that mutual funds, particularly
aggressive-growth funds, exhibit some selectivity ability, but that funds exhibit no
characteristic timing ability.

Research Gaps:

This research deals about the new ways to measure the performance of portfolio
but not deals with the comparative study that is needed to be done to find the
optimal performance ratios for the fund.Because that is needed especially at the
moment of starting a new scheme.

5
 Chapter 3
Research Methodology:
As the objective is to find out the performance valuation factors of
difference kinds of funds.Industrial average of these factors will be taken
and will be set as the benchmark for the fund manager and the
investment structure of the fund will be designed according to the results
that we have arrived at.

The selection of funds will be based on the rankings given by CRISIL.

Category-wise:
Large Cap-oriented Equity funds
Diversified Equity funds
Small and Mid-cap Equity funds
Thematic - Infrastructure funds
Consistent Performers - Equity funds
Index funds
Balanced funds
Monthly Income Plan - Aggressive
Long Term Gilt funds
Long Term Income funds
Consistent Performers - Debt funds

In each category CRISIL has listed top 3 performing funds in the URL
given below.From that top 3, the funds which exist since April 1st 2011
will be considered and last 3 years NAV will be taken for analysis.

URL:http://www.crisil.com/capital-markets/crisil-mf-ranking-
list.html
www.moneycontrol.com
www.nse.com

6
 Chapter 4

Data Analysis:
Large Cap-oriented Equity funds:
Table 4.1:
Franklin India Opportunities Fund (G)

Apr 01, 2011 to Mar

Investment Period
01, 2016
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 1,658.56
Investment Value as on Mar 01, 2016 80,966.90

54.82630 (as on May

Latest NAV
12, 2016)
Table 4.2:
0.2378
Variance 0.2513% %
Beta 0.000346922
0.6641
Mean 0.856420% %
0.04876
Standard Deviation 0.050132913 17

Sharpe Ratio 0.765336183

Treynor's Ratio 0.390887135
Jenson's Alpha -6.67313E-07
Strandard Deviation for Negative
Deviations 0.026484853
Sortino Ratio 1.28686E-05
Information Ratio 0.039447495
Table 4.3:
JPMorgan India Equity Fund
(G)
Investment Period Apr 01, 2011 to Mar 01, 2016
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 3,867.44

7
Investment Value as on Mar
77,623.37
01, 2016
21.83800 (as on May 13,
Latest NAV
2016)
Table 4.4:
Variance 0.2113% 0.2400%
Beta -0.049441136
Mean 0.807811% 0.720690%
Standard Deviation 0.045966767 0.04898756

Sharpe Ratio 0.412322796

Treynor's Ratio 0.005801593
Jenson's Alpha 4.30739E-05
Strandard Deviation for Negative Deviations 0.022750886
Sortino Ratio -2.66395E-05
Information Ratio 0.01778441

Table 4.5:
JM Equity Fund (G)

Investment Period Apr 01, 2011 to Mar 01, 2016

No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 1,545.40
Investment Value as on Mar 01, 2016 74,352.58

Latest NAV 51.46550 (as on May 13, 2016)

Table 4.6:
Variance 0.2947% 0.2400%
Beta -0.022551961
Mean 0.651656% 0.720690%
Standard Deviation 0.054283581 0.04898756

Sharpe Ratio -0.234274595

Treynor's Ratio -0.024251825
Jenson's Alpha -1.55685E-05
Strandard Deviation for Negative Deviations 0.027564491
Sortino Ratio 5.84677E-05

8
Information Ratio -0.014092121

Diversified Equity funds:

Table 4.7:
SBI Magnum Multicap Fund (G)

Apr 01, 2011 to Mar

Investment Period
01, 2016

No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 2,934.84
Investment Value as on Mar 01, 2016 87,252.85

33.39560 (as on
Latest NAV
May 13, 2016)

Table 4.8:
Variance 0.2135% 0.2400%
Beta -0.00669483
Mean 1.075038% 0.720690%
0.04620865
Standard Deviation 6 0.04898756

1.65952638
Sharpe Ratio 8
0.03951423
Treynor's Ratio 6
Jenson's Alpha 2.3723E-05
0.02354074
Strandard Deviation for Negative Deviations 7
-2.39949E-
Sortino Ratio 05
0.07233442
Information Ratio 5
Table 4.9:
Birla Sun Life
Equity Fund
(G)
Apr 01, 2011
Investment
to Mar 01,
Period
2016
No of
60
Investments

9
Total Amount
60,000.00
Invested (Rs)
Total Units
198.22
Purchased
Investment
Value as on 84,649.85
Mar 01, 2016
481.50000 (as
Latest NAV on May 13,
2016)
Table 4.10:
Variance 0.2851% 0.2400%
0.015455
Beta 882
1.005298
Mean % 0.720690%
0.053395 0.0489875
Standard Deviation 816 6

0.998234
Sharpe Ratio 785
0.029201
Treynor's Ratio 323
-
4.39887E-
Jenson's Alpha 05
Strandard Deviation for Negative 0.026591
Deviations 943
4.83906E-
Sortino Ratio 05
0.058098
Information Ratio 023
Table 4.11:
SBI Magnum Multiplier Fund (G)

Apr 01, 2011 to Mar

Investment Period
01, 2016

No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 614.82
Investment Value as on Mar 01, 2016 86,283.97

10
 155.25500 (as on May
Latest NAV
13, 2016)

Table 4.12:
Variance 0.2458% 0.2400%
-
0.037299
Beta 453
1.032747
Mean % 0.720690%
0.049580
Standard Deviation 157 0.04898756

1.269458
Sharpe Ratio 572
-
0.001566
Treynor's Ratio 002
0.000116
Jenson's Alpha 396
Strandard Deviation for Negative 0.027362
Deviations 116
5.2476E-
Sortino Ratio 06
0.063701
Information Ratio 335

Small and Mid-cap Equity funds

Table 4.13:
DSP BlackRock Micro Cap Fund - Regular
Plan (G)
Apr 01, 2011
Investment Period to Mar 01,
2016

No of Investments 60

Total Amount Invested (Rs) 60,000.00

Total Units Purchased 3,037.66

Investment Value as on Mar 01, 2016 112,979.73

44.16100 (as
Latest NAV on May 18,
2016)

11
Table 4.14:
Variance 0.003298275 144.0664323
Beta 19.1443125
Mean 0.016798995 1.579059802
Standard Deviation 0.057430614 12.00276769

Sharpe Ratio -473.6598927

Treynor's Ratio -7.525114001
Jenson's Alpha 29.9084091
Strandard Deviation for Negative
Deviations 0.031105997
Sortino Ratio -15.27550766
Information Ratio -0.130158381

Table 4.15:
Reliance Small Cap Fund (G)

Apr 01, 2011

Investment Period to Mar 01,
2016

No of Investments 60

Total Amount Invested (Rs) 60,000.00

Total Units Purchased 4,832.83

Investment Value as on Mar

109,518.58
01, 2016
26.07540 (as
Latest NAV on May 18,
2016)
Table 4.16:
Variance 0.004245053 144.0664323
Beta 15.19623843
Mean 0.016419552 1.579059802
Standard Deviation 0.065154073 12.00276769

Sharpe Ratio -368.1085135

Treynor's Ratio -9.480121539
Jenson's Alpha 23.74625382
Strandard Deviation for Negative
Deviations 0.032537733
Sortino Ratio -18.79515284

12
Information Ratio -0.130189994

Table 4.17:
Sundaram Select Midcap - Regular
Plan (G)
Apr 01, 2011
Investment Period to Mar 01,
2016
No of Investments 60

Total Amount Invested (Rs) 60,000.00

Total Units Purchased 316.77

Investment Value as on Mar 01, 2016 95,272.22

348.56570
Latest NAV (as on May
18, 2016)
Table 4.18:
0.00302 144.0664
Variance 65 323
11.6054
Beta 34
0.01355 1.579059
Mean 2 802
0.05501 12.00276
Standard Deviation 36 769

-
517.267
Sharpe Ratio 65
-
12.4134
Treynor's Ratio 44
18.1683
Jenson's Alpha 97
Strandard Deviation for Negative 0.02517
Deviations 96
-
17.3158
Sortino Ratio 98
-
0.13042
Information Ratio 89

13
Thematic - Infrastructure funds
Table 4.19:
SBI Infrastructure Fund - Series I (G)
Apr 01,
Investment Period 2011 to Mar
01, 2016
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 6,965.61
Investment Value as on Mar 01, 2016 68,195.43
11.79440
Latest NAV (as on May
27, 2016)

Table 4.20:
0.0101636
Variance 69 0.007997635
0.1282932
Beta 05
-
0.0109032
Mean 69 0.077563185
0.1008150
Standard Deviation 24 0.089429496

-
8.7041849
Sharpe Ratio 26
0.0168834
Treynor's Ratio 69
0.0113496
Jenson's Alpha 45
Strandard Deviation for Negative 0.0303061
Deviations 53
0.0007264
Sortino Ratio 15
-
0.9892312
Information Ratio 82
Table 4.21:
Franklin Build India Fund (G)

Investment Period Apr 01, 2011 to Mar 01, 2016

No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 3,947.19

14
Investment Value as on Mar 01,
98,615.76
2016

Latest NAV 28.96940 (as on May 27, 2016)

Variance 0.00297083 0.002288168

Beta 0.796329333
Mean 0.017898532 0.007823306
Standard Deviation 0.054505321 0.0478348

Sharpe Ratio 3.391384045

Treynor's Ratio 0.000857261
Jenson's Alpha -0.008023198
Strandard Deviation for Negative Deviations 0.02539743
Sortino Ratio 7.98535E-05
Information Ratio 0.210625436

Table 4.22:
Canara Robeco Infrastructure (G)
Apr 01, 2011
Investment Period to Mar 01,
2016
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 2,422.11
Investment Value as on Mar 01, 2016 78,912.47
36.21000 (as
Latest NAV on May 27,
2016)
Table 4.24:
0.0039415 0.00592373
Variance 83 1
0.3654216
Beta 57
-
0.00552393
Mean 0.0080307 8
0.0627820 0.07696577
Standard Deviation 25 7

3.4388821
Sharpe Ratio 46
Treynor's Ratio -
0.0054242

15
 77
-
0.0049531
Jenson's Alpha 58
Strandard Deviation for Negative 0.0276578
Deviations 68
-
0.0002824
Sortino Ratio 8
0.1761125
Information Ratio 36
Consistent Performers - Equity funds
Table 4.25:
SBI Blue Chip Fund (G)
Apr 01, 2011 to
Investment Period
Mar 01, 2016
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 3,340.72
Investment Value as on Mar 01,
87,096.68
2016
29.78260 (as on
Latest NAV
May 30, 2016)
Table 4.26:
0.0018050 0.002377
Variance 29 702
-
0.0259972
Beta 16
0.0104858 0.006640
Mean 5 678
0.0424856 0.048761
Standard Deviation 34 683

2.1302547
Sharpe Ratio 39
0.0220282
Treynor's Ratio 29
9.99638E-
Jenson's Alpha 05
Strandard Deviation for Negative 0.0215839
Deviations 06
-4.78917E-
Sortino Ratio 05
0.0788564
Information Ratio 21
Table 4.27:
UTI Equity Fund (G)

16
 Apr 01,
2011 to
Investment Period
Mar 01,
2016
No of Investments 60
Total Amount Invested 60,000.
(Rs) 00
Total Units Purchased 882.32
Investment Value as on 79,745.
Mar 01, 2016 14
102.57
000 (as
Latest NAV on May
30,
2016)
Table 4.28:
0.0018973 0.002377
Variance 4 702
-
0.0548288
Beta 94
0.0092138 0.006640
Mean 91 678
0.0435584 0.048761
Standard Deviation 62 683

1.3562218
Sharpe Ratio 22
0.0087611
Treynor's Ratio 13
0.0001410
Jenson's Alpha 86
Strandard Deviation for Negative 0.0226841
Deviations 97
-4.01782E-
Sortino Ratio 05
0.0527712
Information Ratio 17

Table 4.29:
ICICI Prudential Dynamic Plan
(G)
Apr 01,
2011 to
Investment Period
Mar 01,
2016
No of Investments 60
Total Amount Invested (Rs) 60,000.

17
 00
Total Units Purchased 464.04
Investment Value as on Mar 75,541.
01, 2016 72
184.40
810 (as
Latest NAV on May
30,
2016)
Table 4.30:
0.0019929 0.00237
Variance 03 77
-
0.0253086
Beta 6
0.0077787 0.00664
Mean 36 07
0.0446419 0.04876
Standard Deviation 42 17

0.5710553
Sharpe Ratio 32
0.0152042
Treynor's Ratio 34
2.88027E-
Jenson's Alpha 05
Strandard Deviation for Negative 0.0249949
Deviations 87
-3.06808E-
Sortino Ratio 05
0.0233391
Information Ratio 83
Index funds
Table 4.31:
Reliance Index Fund - Nifty Plan
(G)
Apr 01, 2011
Investment Period to Mar 01,
2016
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 5,743.17
Investment Value as on Mar 01,
69,112.78
2016
13.61510 (as
Latest NAV on May 31,
2016)

Table 4.32:

18
 0.0022166 0.002377
Variance 05 702
-
0.0549597
Beta 29
0.0051792 0.006640
Mean 63 678
0.0470808 0.048761
Standard Deviation 31 683

-
0.6593035
Sharpe Ratio 25
0.0029311
Treynor's Ratio 84
-8.0319E-
Jenson's Alpha 05
Strandard Deviation for Negative 0.0244790
Deviations 73
-1.45875E-
Sortino Ratio 05
-
0.0299705
Information Ratio 66
Table 4.33:
Kotak Nifty ETF
Investment Apr 01, 2011 to
Period Mar 01, 2016
No of
60
Investments
Total Amount
60,000.00
Invested (Rs)
Total Units
93.61
Purchased
Investment
Value as on Mar 68,534.28
01, 2016
820.82800 (as on
Latest NAV
May 30, 2016)
Table 4.34:
0.0022542 0.002377
Variance 65 702
-
0.0471928
Beta 48
0.0048747 0.006640
Mean 85 678
0.0474790 0.048761
Standard Deviation 98 683

19
 -
0.7833566
Sharpe Ratio 62
0.0026155
Treynor's Ratio 88
-8.33375E-
Jenson's Alpha 05
Strandard Deviation for Negative 0.0247707
Deviations 11
-1.12334E-
Sortino Ratio 05
-
0.0362147
Information Ratio 73

Table 4.35:
IDBI Nifty Index
Fund (G)
Apr 01, 2011 to Mar 01,
Investment Period
2016
No of Investments 60
Total Amount
60,000.00
Invested (Rs)
Total Units
5,032.96
Purchased
Investment Value
as on Mar 01, 68,061.71
2016
15.28410 (as on May 30,
Latest NAV
2016)
Table 4.36:
0.0022116 0.002377
Variance 56 702
-
0.0569415
Beta 18
0.0046180 0.006640
Mean 48 678
0.0470282 0.048761
Standard Deviation 43 683

-
0.9145320
Sharpe Ratio 86
0.0029160
Treynor's Ratio 82
-
0.0001151
Jenson's Alpha 72
Strandard Deviation for Negative 0.0247468
Deviations 93

20
 -1.48397E-
Sortino Ratio 05
-
0.0414799
Information Ratio 06
Balanced funds
Table 4.37:
Franklin India Balanced Fund
(G)
Apr 01, 2011
Investment Period to Mar 01,
2016
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 993.13
Investment Value as on Mar
84,691.81
01, 2016
93.90140 (as
Latest NAV on May 31,
2016)
Table 4.38:
0.0011546 0.002377
Variance 74 702
-
0.0271859
Beta 73
0.0098685 0.006640
Mean 45 678
0.0339804 0.048761
Standard Deviation 94 683

2.7954792
Sharpe Ratio 99
0.0449874
Treynor's Ratio 57
8.77527E-
Jenson's Alpha 05
Strandard Deviation for Negative 0.0159609
Deviations 05
-8.84786E-
Sortino Ratio 05
0.0661967
Information Ratio 95
Table 4.39:
Tata Balanced Fund -
Regular Plan (G)
Apr 01, 2011 to
Investment Period
Mar 01, 2016
No of Investments 60

21
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 557.68
Investment Value as on
86,076.32
Mar 01, 2016
169.99750 (as
Latest NAV on May 31,
2016)
Table 4.40:
0.0013002 0.002377
Variance 55 702
-
0.0276666
Beta 51
0.0112763 0.006640
Mean 38 678
0.0360590 0.048761
Standard Deviation 45 683

3.5651934
Sharpe Ratio 41
0.0389438
Treynor's Ratio 9
0.0001282
Jenson's Alpha 53
Strandard Deviation for Negative 0.0180990
Deviations 41
-7.7405E-
Sortino Ratio 05
0.0950676
Information Ratio 7
Table 4.41:
ICICI Prudential
Balanced Fund (G)
Apr 01, 2011 to Mar 01,
Investment Period
2016
No of Investments 60
Total Amount Invested
60,000.00
(Rs)
Total Units Purchased 983.2
Investment Value as on
83,159.39
Mar 01, 2016
93.02000 (as on May 31,
Latest NAV
2016)
Table 4.42:
0.0012042 0.002377
Variance 46 702
-
0.0334500
Beta 37

22
 0.0108119 0.006640
Mean 03 678
0.0347022 0.048761
Standard Deviation 41 683

3.4637660
Sharpe Ratio 05
0.0350808
Treynor's Ratio 65
0.0001395
Jenson's Alpha 28
Strandard Deviation for Negative 0.0184463
Deviations 28
-7.66076E-
Sortino Ratio 05
0.0855430
Information Ratio 82
Monthly Income Plan - Aggressive
Table 4.43:
HSBC Monthly Income Plan -
Savings Plan (G)
Apr 01, 2011 to
Investment Period
Mar 01, 2016
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 2,558.74
Investment Value as on Mar
73,780.39
01, 2016
30.54120 (as on
Latest NAV
Jun 02, 2016)
Table 4.44:
0.0002630 0.002377
Variance 09 702
0.1755410
Beta 07
0.0069423 0.006640
Mean 37 678
0.0162175 0.048761
Standard Deviation 5 683

1.1469535
Sharpe Ratio 23
-
0.0120467
Treynor's Ratio 17
-5.29535E-
Jenson's Alpha 05
Strandard Deviation for Negative 0.0067175
Deviations 32

23
 -8.27957E-
Sortino Ratio 05
0.0061863
Information Ratio 94

Table 4.45:
Franklin India Monthly Income Plan
(G)

Apr 01, 2011 to

Investment Period
Mar 01, 2016

No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 1,744.05
Investment Value as on Mar 01,
76,290.20
2016
46.13530 (as on
Latest NAV
May 31, 2016)
Table 4.46:
0.0001711 0.002377
Variance 92 702
0.0258177
Beta 2
0.0077195 0.006640
Mean 66 678
0.0130840 0.048761
Standard Deviation 27 683

6.3022217
Sharpe Ratio 07
-
0.0854649
Treynor's Ratio 45
-2.78544E-
Jenson's Alpha 05
Strandard Deviation for Negative 0.0056522
Deviations 94
-6.68289E-
Sortino Ratio 05
0.0221257
Information Ratio 43
Table 4.47:
Reliance Monthly Income Plan
(G)
Apr 01, 2011 to
Investment Period
Mar 01, 2016

24
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 2,256.59
Investment Value as on Mar
75,348.38
01, 2016
35.09300 (as on
Latest NAV
May 31, 2016)
Table 4.48:
0.0002303 0.002377
Variance 91 702
0.3757845
Beta 89
0.0074111 0.006640
Mean 34 678
0.0151786 0.048761
Standard Deviation 34 683

3.3441229
Sharpe Ratio 41
-
0.0057142
Treynor's Ratio 07
-
0.0002895
Jenson's Alpha 25
Strandard Deviation for Negative 0.0083858
Deviations 39
-5.89948E-
Sortino Ratio 05
0.0158004
Information Ratio 32
Long Term Gilt funds:
Table 4.49:
Tata Gilt Mid Term Fund (G)
Apr 01, 2011 to Mar
Investment Period
01, 2016
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 4,733.54
Investment Value as on Mar
76,284.31
01, 2016
16.69300 (as on Jun
Latest NAV
02, 2016)
Table 4.50:
0.0001195 0.002377
Variance 95 702
1.2010939
Beta 49

25
 0.0075981 0.006640
Mean 8 678
0.0109359 0.048761
Standard Deviation 54 683

8.0061992
Sharpe Ratio 55
-
0.0018800
Treynor's Ratio 42
-
0.0011500
Jenson's Alpha 5
Strandard Deviation for Negative 0.0078686
Deviations 83
-3.43207E-
Sortino Ratio 05
0.0196363
Information Ratio 63
Table 4.51:
L&T Gilt Fund (G)
Apr 01, 2011 to Mar
Investment Period
01, 2016
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 2,133.35
Investment Value as on Mar 01,
77,516.30
2016
37.94410 (as on Jun
Latest NAV
02, 2016)
Table 4.52:
0.0001842 0.002377
Variance 33 702
0.8610944
Beta 86
0.0081867 0.006640
Mean 55 678
0.0135732 0.048761
Standard Deviation 31 683

Sharpe Ratio 8.3919849

-
0.0025473
Treynor's Ratio 04
-
0.0013313
Jenson's Alpha 19
Strandard Deviation for Negative 0.0100248
Deviations 01
Sortino Ratio -4.03109E-

26
 05
0.0317068
Information Ratio 06
Table 4.53:
Reliance Gilt Securities Fund - Retail
Plan (G)
Apr 01, 2011 to
Investment Period
Mar 01, 2016
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 4,018.57
Investment Value as on Mar 01, 2016 75,111.86
19.47440 (as on
Latest NAV
Jun 02, 2016)
Table 4.54:
0.0001931 0.002377
Variance 35 702
0.7878128
Beta 8
0.0072764 0.006640
Mean 26 678
0.0138972 0.048761
Standard Deviation 98 683

3.2917324
Sharpe Ratio 47
-
0.0027729
Treynor's Ratio 51
-
0.0005008
Jenson's Alpha 51
Strandard Deviation for Negative 0.0108344
Deviations 25
-3.89422E-
Sortino Ratio 05
0.0130378
Information Ratio 67

Long Term Income funds:

Table 4.55:
Birla Sun Life Income Plus - Retail
(G) (Plan B)
Apr 01, 2011 to
Investment Period
Mar 01, 2016

27
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 1,122.24
Investment Value as on Mar 01,
71,811.85
2016
67.05410 (as on
Latest NAV
Jun 06, 2016)
Table 4.56:
0.0001437 0.002377
Variance 02 702
0.5920597
Beta 14
0.0064028 0.006640
Mean 5 678
0.0119875 0.048761
Standard Deviation 65 683

-
1.6550121
Sharpe Ratio 34
-
0.0037732
Treynor's Ratio 68
0.0001408
Jenson's Alpha 08
Strandard Deviation for Negative 0.0090947
Deviations 63
-3.52983E-
Sortino Ratio 05
-
0.0048773
Information Ratio 55
Table 4.57:
BNP Paribas Flexi Debt Fund -
Regular Plan (G)
Apr 01, 2011 to
Investment Period
Mar 01, 2016
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 2,965.70
Investment Value as on Mar 01, 2016 74,648.87
25.92370 (as on
Latest NAV
Jun 06, 2016)
Table 4.58:
7.38511E- 0.002377
Variance 05 702
1.2615762
Beta 35

28
 0.0071030 0.006640
Mean 21 678
0.0085936 0.048761
Standard Deviation 66 683

6.2604762
Sharpe Ratio 63
-
0.0018261
Treynor's Ratio 68
-
0.0005832
Jenson's Alpha 81
Strandard Deviation for Negative 0.0058304
Deviations 92
-2.91814E-
Sortino Ratio 05
0.0094816
Information Ratio 88
Table 4.59:
HDFC High Interest Fund -
Dynamic Plan (G)
Apr 01, 2011 to
Investment Period
Mar 01, 2016
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 1,491.24
Investment Value as on Mar
73,697.08
01, 2016
51.77240 (as on
Latest NAV
Jun 02, 2016)
Table 4.60:
0.0001102 0.002377
Variance 73 702
0.9471929
Beta 01
0.0068154 0.006640
Mean 18 678
0.0105010 0.048761
Standard Deviation 96 683

1.5846106
Sharpe Ratio 7
-
0.0023938
Treynor's Ratio 4
-
0.0001655
Jenson's Alpha 12

29
Strandard Deviation for Negative 0.0061672
Deviations 33
-4.05427E-
Sortino Ratio 05
0.0035835
Information Ratio 47
Consistent Performers - Debt funds
Table 4.61:
Birla Sun Life Income Plus - Retail (G)
(Plan B)
Apr 01, 2011 to Mar 01,
Investment Period
2016
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 1,122.24
Investment Value as on Mar 01, 2016 71,811.85
67.05410 (as on Jun 06,
Latest NAV
2016)
Table 4.62:
0.0001437 0.002377
Variance 02 702
0.5920597
Beta 14
0.0064028 0.006640
Mean 5 678
0.0119875 0.048761
Standard Deviation 65 683

-
1.6550121
Sharpe Ratio 34
-
0.0037732
Treynor's Ratio 68
0.0001408
Jenson's Alpha 08
Strandard Deviation for Negative 0.0090947
Deviations 63
-3.52983E-
Sortino Ratio 05
-
0.0048773
Information Ratio 55
Table 4.63:
IDFC Dynamic Bond Fund - Regular
Plan (G)
Apr 01, 2011 to Mar 01,
Investment Period
2016
No of Investments 60

30
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 4,239.96
Investment Value as on Mar 01,
74,734.84
2016
18.08140 (as on Jun 06,
Latest NAV
2016)
Table 4.64:
8.49417E- 0.002377
Variance 05 702
0.3270455
Beta 09
0.0077437 0.006640
Mean 96 678
0.0092163 0.048761
Standard Deviation 82 683

12.986766
Sharpe Ratio 06
-
0.0070105
Treynor's Ratio 23
-
0.0003607
Jenson's Alpha 7
Strandard Deviation for Negative 0.0045622
Deviations 05
-4.26879E-
Sortino Ratio 05
0.0226226
Information Ratio 37
Table 4.65:
UTI Bond Fund (G)
Apr 01, 2011 to Mar 01,
Investment Period
2016
No of Investments 60
Total Amount Invested (Rs) 60,000.00
Total Units Purchased 1,696.90
Investment Value as on Mar 01, 2016 73,839.63
44.71410 (as on Jun 06,
Latest NAV
2016)
Table 4.66:
9.33908E- 0.002377
Variance 05 702
0.2201244
Beta 92
0.0074545 0.006640
Mean 68 678
0.0096638 0.048761
Standard Deviation 92 683

31
 8.7148823
Sharpe Ratio 15
-
0.0103773
Treynor's Ratio 59
-
0.0001791
Jenson's Alpha 57
Strandard Deviation for Negative 0.0067608
Deviations 63
-3.15542E-
Sortino Ratio 05
0.0166911
Information Ratio 78

Findings
After finding the required ratios for the mutual fund schemes,now the
industry averages are found by taking the average of each ratio in that
particular mutual fund class.

Large Cap-oriented Equity funds Industry Averages:

Table 4.67:
Industry Averages
0.00252 0.00239
Variance 432 2421
-
0.02388
Beta 2058
0.00771 0.00701
Mean 9625 8157
0.05012 0.04891
Standard Deviation 7754 2267

0.31446
Sharpe Ratio 1461
0.12414
Treynor's Ratio 5634
8.94602
Jenson's Alpha E-06
Strandard Deviation for 0.02560
Negative Deviations 0077

32
 1.48989
Sortino Ratio E-05
0.01437
Information Ratio 9928
Diversified Equity fundsIndustry Averages:
Table 4.68:
Industry Averages
0.00248 0.00239
Variance 1515 9781
-
0.00951
Beta 28
0.01037 0.00720
Mean 6943 6897
0.04972 0.04898
Standard Deviation 821 756

1.30907
Sharpe Ratio 3248
0.02238
Treynor's Ratio 3186
3.20433
Jenson's Alpha E-05
Strandard Deviation for 0.02583
Negative Deviations 1602
9.88108
Sortino Ratio E-06
0.06471
Information Ratio 1261
Small and Mid-cap Equity fundsIndustry Averages:
Table 4.69:
Industry Averages
0.00352 144.066
Variance 327 432
15.3153
Beta 283
0.01559 1.57905
Mean 019 98
0.05919 12.0027
Standard Deviation 942 677

-
453.012
Sharpe Ratio 02
-
9.80622
Treynor's Ratio 65

33
 23.9410
Jenson's Alpha 201
Strandard Deviation for 0.02960
Negative Deviations 777
-
17.1288
Sortino Ratio 53
-
0.13025
Information Ratio 91
Thematic fundsIndustry Averages:
Table 4.70:
Industry Averages
0.00569 0.00540
Variance 203 318
0.43001
Beta 473
0.00500 0.02662
Mean 865 085
0.07270
Standard Deviation 079

-
0.62463
Sharpe Ratio 96
0.00410
Treynor's Ratio 548
-
0.00054
Jenson's Alpha 22
Strandard Deviation for 0.02778
Negative Deviations 715
0.00017
Sortino Ratio 46
-
0.20083
Information Ratio 11
Consistent Performers - Equity fundsIndustry Averages:
Table 4.71:
Industry Averages
0.00189 0.0023
Variance 842 777
-
0.03537
Beta 83
0.00915
Mean 949
Standard Deviation 0.04356

34
 201

1.35251
Sharpe Ratio 063
0.01533
Treynor's Ratio 119
8.9951E
Jenson's Alpha -05
Strandard Deviation for 0.02308
Negative Deviations 77
-3.958E-
Sortino Ratio 05
0.05165
Information Ratio 561
Index fundsIndustry Averages:
Table 4.72:
Industry Averages
0.00222 0.00237
Variance 7508 7702
-
0.05303
Beta 1365
0.00489 0.00664
Mean 0698 0678
0.04719 0.04876
Standard Deviation 6057 1683

-
0.78573
Sharpe Ratio 0757
0.00282
Treynor's Ratio 0951
-
9.29427
Jenson's Alpha E-05
Strandard Deviation for 0.02466
Negative Deviations 5559
-
1.35535
Sortino Ratio E-05
-
0.03588
Information Ratio 8415
Balanced fundsIndustry Averages:
Table 4.73:
Industry Averages
Variance 0.00121 0.00237

35
 972 77
-
0.02943
Beta 42
0.01065 0.00664
Mean 226 068
0.03491 0.04876
Standard Deviation 393 168

3.27481
Sharpe Ratio 292
0.03967
Treynor's Ratio 074
0.00011
Jenson's Alpha 851
Strandard Deviation for 0.01750
Negative Deviations 209
-
8.083E-
Sortino Ratio 05
0.08226
Information Ratio 918
Monthly Income Plan - AggressiveIndustry Averages:
Table 4.74:
Industry Averages
0.00022 0.00237
Variance 153 77
0.19238
Beta 111
0.00735
Mean 768
0.01482 0.04876
Standard Deviation 674 168

3.59776
Sharpe Ratio 606
-
0.03440
Treynor's Ratio 86
-
0.00012
Jenson's Alpha 34
Strandard Deviation for 0.00691
Negative Deviations 855
-
6.954E-
Sortino Ratio 05
Information Ratio 0.01470

36
 419
Long Term Gilt fundsIndustry Averages:
Table 4.75:
Industry Averages
0.00016 0.00237
Variance 5654 7702
0.95000
Beta 0438
0.00768 0.00664
Mean 7121 0678
0.01280 0.04876
Standard Deviation 2161 1683

6.56330
Sharpe Ratio 5534
-
0.00240
Treynor's Ratio 0099
-
0.00099
Jenson's Alpha 4073
Strandard Deviation for 0.00957
Negative Deviations 597
-
3.78579
Sortino Ratio E-05
0.02146
Information Ratio 0345
Long Term Income fundsIndustry Averages:
Table 4.76:
Industry Averages
0.00010 0.00237
Variance 928 77
0.93360
Beta 962
0.00677 0.00664
Mean 376 068
0.01036 0.04876
Standard Deviation 078 168

2.06335
Sharpe Ratio 827
-
0.00266
Treynor's Ratio 44
Jenson's Alpha -
0.00020

37
 27
Strandard Deviation for 0.00703
Negative Deviations 083
-
3.501E-
Sortino Ratio 05
0.00272
Information Ratio 929
Consistent Performers - Debt fundsIndustry Averages:
Table 4.77:
Industry average
0.00010 0.00237
Variance 734 77
0.37974
Beta 324
0.00720 0.00664
Mean 04 068
0.01028 0.04876
Standard Deviation 928 168

6.68221
Sharpe Ratio 208
-
0.00705
Treynor's Ratio 37
-
0.00013
Jenson's Alpha 3
Strandard Deviation for 0.00680
Negative Deviations 594
-
3.651E-
Sortino Ratio 05
0.01147
Information Ratio 882

38
 Recommendations

As this analysis is done for the purpose of dissertation ,the sample size is
lesser because of the time and other constraints.When an AMC had to do
similar analysis I would advice to take much larger sample size to get
the real representative performance of the market rather than taking the
Top 3 in each class.

Consider larger sample size

Use more advanced analysis techniques for better understanding of
the industry performance

39
In some cases there were sudden variations in the performance of
benchmarks that were considered but AMC has to investigate the reason
for the those variations and make more interpretations out of it.

Conclusions
Now the fund manager has all the industry averages for each mutual
fund category .By observing the data now he can adjust his sector
compositions, expense ratio,investment strategy, expected profits from
the fund in the initial years, minimum cash ratio,Intial Offer Price etc.

40
41