Main Project

EXECUTIVE SUMMARY
Primary Investment objective of any individual or organization is to maximize the return and
minimizing the market risk and credit risk through diversification. A mutual fund has become the
attractive way for the investors to invest their money. The first priority of every individual is
bank investment and the second priority goes to mutual fund and other revenues.
The Mutual fund pools resources from a large number of speculators and afterward enhances its
investment into a wide range of holding, for example, stock bonds or government securities with
a specific end goal to give high relative wellbeing and great returns.
The first chapter of the project helps to understand an statement of the study, objectives of the
study, need and limitation of the study, second and third chapter of the project shows overview
of financial services industry in India background and inspection of the sunness capital India pvt
ltd. Product profile and services of the company and facilities provides to clients from the
company.
The main objective of study is to obtain and analyse the performance of mutual fund using
sharper’s, jensen’s and treynor’s models.
The project consists of a brief idea about the development of mutual fund industry, the broad
idea about the organizations and theory of mutual funds.
CHAPTER 1
INTRODUCTION
INTRODUCTION ABOUT THE STUDY
Finance is a key in part of all round development of a concern. Finance is described as

“lifeblood” of an industry and pure-requisite for accelerating the process of development. Every
business needs finance, “finance is the live wire of an organization like the heart beat of human
being.
Monetary examination is a procedure of deciding the huge activity and money related qualities of
a firm from bookkeeping information and budgetary proclamations. Financial analysis is an
examination of the organizations financial statement and the various ratio derived information on
its balance sheet and income statement.
TITLE OF THE STUDY
“A STUDY ON PERFORMANCE EVALUATION OF MUTUAL FUNDS SCHEMES AT

SUNNESS CAPITAL INDIA PVT LTD BANGALORE
NEED FOR THE STUDY
There are numerous fund management companies that are engaged in the managing various
mutual funds and some assuring performance of various schemes becomes very important from
investors point of view as well as fund manager point of view.
The principle motivation behind doing this extend was to think about common reserve and its
working. This knows in insights about common store industry ideal from its commencement
stage, development and future prospects.
OBJECTIVE OF THE STUDY
 To evaluate investment performance of mutual funds in terms of risk and return.

 To examine the funds sensitivity to the market fluctuations in terms of beta.
 To rank the funds according to sharpe’s, Treynor’s and Jensen’s performance
measure.
 To evaluate the trends in returns of selected Mutual Funds.
SCOPE OF THE STUDY
The current study comprise of 10 mutual fund schemes propelled by diverse mutual fund
companies. The selected schemes NAV have been compared for 10 years with the monthly
return. Then the selected schemes have been compared with the standard return to estimate the
condition of the Mutual funds and other schemes.
STATEMENT OF PROBLEM
The current study comprise of 10 mutual fund schemes propelled by diverse mutual fund
companies. The selected schemes NAV have been compared for 10 years with the monthly
return. Then the selected schemes have been compared with the standard return to estimate how
the condition of the Mutual funds and other schemes.
RESEARCH METHODOLOGY
This study is conducted on Secondary sources & it is descriptive in nature. The research has used
quantitative techniques of Standard Deviation, Beta, Treynor’s measures, Sharpe measures and
Jensen’s performance measures.
Sources of data
Secondary data
Secondary data has been collected from reports, government publications and other sources.
Tools and techniques
Performance measure
Tenor’s Index
Sharpe’s Index
Jensen’s Index
Statistical techniques
Mean
Standard deviation
REVIEW OF LITERATURE
An attempt was made in this section to review the past research done in the area of performance
analysis of selected Mutual funds.
Ravi vyas and suresh Chandra moonat-(2012) “Perception and behavior of Mutual Funds
Investors in MadhyaPradesh” concluded that the highly volatile funds are risky and therefore the
fund manager should collect all possible information before making an investment. A careful and
reasonable diversification of investment in mutual funds should be done on the investor’s part to
balance the risk involved in investment. And suggested that investors should inculcate the habit
of saving regularly so, that the little savings will grow into a big returns.
Selvam et.al (2011)the authors in their study had conducted a research onAnalysis of Risk and
Return Relationship of Indian mutual fund schemes and concluded that out of thirty five sample
schemes, eleven showed significant t–values and all other twenty four sample schemes did not
prove significant relationship between the risk and return. According to t-alpha values, majority
(thirty two) of the sample schemes' returns were not significantly different from their market
returns and very few number of sample schemes' returns were significantly different from their
market returns during the study period
Dr. Susheel Kumar Mehta (2010)the authors in their study had conducted a research onanalyse
the performance of mutual fund schemes of SBI and UTI and concluded that SBI schemes have
performed better than the UTI in the year 2007-2008.
Agrawal Deepak &Patidar Deepak (2009)the authors in their study “A ComparativeStudy of

Equity Based Mutual Fund of Reliance and HDFC” had concluded that the performance is
affected by the saving and investment habits of the people and at the other side the confidence
and loyalty of the fund Manager and rewards
Rao D. N (2006)the authors in their study “Investment Styles and Performance of Equity Mutual
Funds in India” hadconcluded that growth plans have generated higher returns than that of
dividend plans but at a higher risk studied classified the 419 open-ended equity mutual fund
schemes into six distinct investment styles.
7. Bajwa, Rubeena, “Performance Analysis of Indian Investment Strategies: A Study based
on Value and Growth Styles, Asian Journal of Research in Banking and Finance”, Volume:
3, Issue: 12, Pages: 1-15, Number of pages: 15, year: Dec 2013
"Generally utilized terms 'esteem' and 'development' speculation styles have a broad history in
value administration. Different speculation methodologies have been dissected in the history in
view of the measurements of these styles. This examination dissected the speculation execution
investigation of different procedures framed based on six esteem and development parameters
through the different rising and falling patterns of Indian value advertise. In our economy the
outcomes have not possessed the capacity to give parallel evidence as identified with other
created country. The amplification systems have been more gainful and their style-level partners
were as well."
LIMITATIONS OF THE STUDY
 The study is limited to performance analysis of mutual funds.

 Considered only one year of data.
 Considered only 10 mutual funds for the analysis.
 The study only focuses on selected mutual funds only.
CHAPTER-2
COMPANY AND INDUSTRY PROFILE
Introduction:
SUNNESS CAPITAL INDIA PRIVATE LIMITED (SCIPL) was incorporated in 2009, is an

active capital firm that specializes in investments. SCIPL is headquartered in Bangalore with
branch office in Mangalore. SCIPL is an investment management firm that maximizes return on
investment, offering stake holders a unique conduit of risk-controlled high return on investment.
Our approach to equities continues to be through value-oriented, fundamental research and
disciplined portfolio management. This commitment to deep, fundamental research across the
product spectrum underpins a long-term investment philosophy which is a hallmark of our
culture. We are committed to our goal of providing solid, consistent returns through all market
cycles.
We believe our success is not only a result of our firm’s vision, but of the prudent investment
philosophy that guides the way we balance risk with reward. It’s an approach that has stood the
toughest test of all the Time. SCIPL’s unique approach to investing maximizes return on capital,
offering investors a unique conduit into risk-controlled high return investments.
COMPANY PROFILE
SUNNESS CAPITAL INDIA PRIVATE LIMITED (SCIPL), was incorporated in 2009, is an active capital
firm that specializes in investments. SCIPL is headquartered in Bangalore with branch office in
Bangalore, Tamilnadu & Maharashtra (Mumbai - Ghatkopar). SCIPL is an investment
management firm that maximizes return on investment, offering stake holders a unique
conduit of risk-controlled return on investment. Our approach to equities continues to be
through value-oriented, fundamental research and disciplined portfolio management. This
commitment to deep, fundamental research across the product spectrum underpins a long-
term investment philosophy which is a hallmark of our culture. We are committed to our goal
of providing solid, consistent returns through all market cycles.
We believe our success is not only a result of our firm’s vision, but of the prudent investment
philosophy that guides the way we balance risk with reward. It’s an approach that has stood the
toughest test of all the Time. SCIPL’s unique approach to investing maximizes return on capital,
offering investors a unique conduit into risk-controlled high return investments.
This table displays the company profile:
Name of the company Sunness capital India Pvt ltd.
Year of establishment 26 August 2009
Headquarter Bangalore
Company category Company limited by shares
Class of company Private
Website www.sunness.in
Overview
A mutual fund goes revise to the periods of the "Egyptians and Phoenicians "while they offer
offers in parades and vessels to expand the risk of underlined attempts. The remote and outskirts
govt Trust of London of 1867 is estimated to the present thought of shared assets. The USA is,
believed to be Mecca of bleeding edge shared assets industry. In U.S.A by the mid '30s a broad
no. of close - finished common assets were in task. In 1954, the cash leading body of trustees for
the private part endorsed determination of hold assets of the professional class theorists over unit
trusts. In July 1964, the thought started in India when UTI was established.
Evolution of the Indian Brokerage Market

The Indian broking industry is one of the most seasoned exchanging commercial ventures that
were around even before the foundation of the BSE in 1875. The Brokerage went towards
manageable extension. The development of the financier Brokerage sector is clarified in three
stages: pre 1990, 1990-2000, post 2000.
INDUSTRY PROFILE
Evolution:
Indian securities exchanges are one of the most established and perceived in all of Asia. The
principal business sector in India was the Bombay stock trade set up in 1875 as Asia's first stock
trade. In spite of the fact that the first joint-stock trade organization to accomplish an altered
capital stock was the Dutch East Indian Company (established in 1602) and subsequently
persistent exchange stock happened in Amsterdam trade.
The world's biggest markets are in United States, United Kingdom, Japan, India, China, Pakistan,
Canada, Germany, France, South Korea, and Netherlands. There are currently securities
exchanges in for all intents and purposes each created and most creating economy. The
exchanging rundown was more extensive in 1839 and the representatives were perceived by
banks and vendors amid 1840 and business and advance issuing or to be executed was begun
nearly by eighteenth century.
Business on corporate stocks and partakes in bank and cotton presses were begun in Bombay
by1830's. Slowly there was a quick development and advancement of business venture and
business that pulled in new financial specialists or players where the quantities of agents were
higher in number i.e. into 60 by the year 1860.
Offer insanity in India started with an emergency where the American common war had broken
out amid 1860-61 which prompt cessation of cotton supply from United States of Europe. After
offer insanity had begun in India there was more number of representatives around 200-250 as it
began creating. The American common war was finished in 1865 and a deplorable fall was
reflected and the merchants began to take upon and made a helpful spot to make exchange,
amass business. They found a road place in Bombay and the road was named as Dalal-Street.
Later they formally initiated and formally settled "The Shares and Stock intermediary
Association" additionally called as The Stock trade in Bombay. Amid the year 1895 the stock
trade gained a recommendation in the same road and began to grow in this manner in 1899 and
stock trade at Bombay was mix.
INDIAN STOCK EXCHANGES- An Umbrella Growth
After the second world war was dejected out it gave an impact or get which was trailed by a hang
however then the circumstance had changed quickly when the nation was activated as a supply
construct and controls with respect to seeds, cotton and different wares and different dealings in
them were found in the year 1943 of money markets. There were numerous to join the strengths
of exchange and their numbers were expanding quickly. New affiliations were constituted and
Stock trade framework was in all parts of the nation such as: Uttar Pradesh stock trade in 1940
Hyderabad in 1944 and Nagpur stock trade in 1940were consolidated in Delhi there were two
stock trades called Delhi's Stocks and shares Broker Association ltd and the Delhi Shares and
stocks trade ltd in the year 1947 and afterward it was amalgamated into the name Delhi Stock
Exchange Association Ltd.
Mutual funds in India

The first introduction of a mutual fund in India occurred in 1961, when the government of India
launched unit trust of India (uti). until 1987, until enjoyed a monopoly in the Indian mutual fund
market. Then a host of other government - controlled Indian financial companies came up with
their own funds. These included state bank of India, cannara bank, and Punjab national bank.
This market was made open to private players in 1993, as are suit of the his tore constitutional
amendments brought forward by the then congress-led government under the existing regime of
liberalization, privatization and globalization (LPG). The first private sector fund to operate in
India was Kothari pioneer, which later merged with Franklin Templeton.
Bombay Stock Exchange (BSE)
It was set up in 1875, situated in Bombay and is additionally one of the most seasoned stock
trades in Asia. There are more than 5000 organizations enrolled on BSE making the world's top
trade as recorded individuals. To quantify the general execution of the trade it created. the BSE
SENSEX file, giving the BSE a way to gauge and it is utilized as a part of subordinates business
sector, exchanging SENSEX future and forward contracts and extending BSE's exchanging
stage. The improvement of SENSEX choices alongside value subsidiaries followed in 2001 and
2002.
On 22 might 2006 BSE propelled the dollar connected adaptation of BSE-100 record and on
May 27th 1994 the 'BSE-200" and the DOLLEX-200 was additionally dispatched and in 1999
the BSE-500 Index and rate segments lists were likewise propelled. Data on Price-Earnings
Ratio, the Price to Book esteem proportion, and the Dividend yield rate was spread by the BSE
on everyday premise. The file estimations of BSE are shared through a constant premise amid
business sector hours and are shown in the BSE site and other wire offices and are checked on
occasionally b the Committee of BSE. The panel contains prominent autonomous fund experts
that edges the board polices, rules for the systems of support and advancement of all BSE list.
Other developing cities in stock market
Beside Bombay, the other city which picked up significance was Ahmadabad. Numerous
factories were set up after 1880 from Ahmadabad and were quickly creating ahead. As new
plants rose, and requirement for stock trade was essential, it was shaped by gathering of
specialists as "The Ahmadabad Stocks and shares Association." The cotton material industry was
in the middle of Bombay and Ahmadabad amid 1894. The jute business was in Calcutta and
other significant commercial ventures like tea and coal were additionally included. After offer
insanity in 1861 - 1865, there was an awesome top in jute offers alongside tea and coal offers for
Calcutta and these rose quickly at a top and a stock Association must be framed by a gathering of
specialists. It was named as "The Calcutta Stock Exchange Association." Indian Enterprise
started in the twelfth century with the beginning of TATA Iron and Steel Co Ltd. in 1907. Later
Madras Stock Exchange rose/framed with 100 individuals. Notwithstanding they fizzled because
of a few circumstances and the quantity of individuals lessened from 100 to only 3 in 1923 and
was out of group. After a particular length of time of time, securities exchange enhanced in 1937
and Madras stock trade was resuscitated and numerous different urban communities like Lahore
and Punjab had their own Stock Exchanges amid 1936.Later Indian stock trade like U.P, Nagpur,
Hyderabad, Delhi and so on., had their own particular stock trades which gave a fast
development and a formative procedure.
Mutual funds are an under tapped market in India

In spite of being accessible in the market under 10%of Indian family units have put resources
into common assets. An ongoing report on Mutual Fund Investments in India distributed by look
into and investigation firm, Boston Analytics, recommends financial specialists are keeping
away from putting their cash into shared supports because of their apparent high hazard and an
absence of data on how common assets function. There are 46 Mutual Funds as of June 2017.
The essential purpose behind not contributing gives off an impression of being associated with
city measure. Among respondents with a high reserve funds rate, near 40% of the individuals
who live in metros and Tier I urban communities viewed such ventures as exceptionally
hazardous, while 33% of those in Tier II urban areas said they didn't know how or where to put
resources into such resources.
Over the Counter Exchange of India (OTCEI)
The old components in Indian securities exchange offered ascend to practical inefficiencies
comparably as, absence of straightforwardness, long settlement periods, and nonattendance of
liquidity which influenced financial specialists to a specific degree. To overcome such
challenges OTCEI was made in 1992 by nation's premises monetary foundations, for example,
Unit Trust of India, Industrial Credit and Investment Corporation of India, Industrial
Development Bank of India, SBI Capital Markets, Industrial Finance Corporation of India,
General Insurance Corporation and its backups.
Advantages of OTCEI
 OTCEI minimizes the danger and gives a superior exchanging system the nation over
with more prominent liquidity.
 Due to screen based script less exchanging more noteworthy straightforwardness and
exactness of costs is acquired.
 Accurate cost of the exchange is accessible if there should be an occurrence of
exchanging which is recipient to speculators.
 Compared to different trades it includes a quicker settlement and exchange process.
National stock exchange (NSE)
Indian securities exchange needed to bring upon or standard with universal exchange or
benchmarks on liberalization of Indian economy. The national stock trade was joined in the year
1992 by Industrial Development Bank of India, Industrial Credit and Investment Corporation of
India, Industrial Finance Corporation of India, all Insurance Corporations, chose business banks
and others.
Exchanging at NSE was mostly characterized into:
• Wholesale obligation market
• Capital market
Corporate bodies and foundations which enter high esteem exchange money related instruments,
for example, treasury charges, government securities open segment unit securities, business
paper, endorsement of store, and so on.
For the most part there are two sorts of players in NSE:
1. Trading individuals: Trading depends on screen based robotized instrument which

depends on a guideline of an overdriven market. Exchanging individuals can survey the
progressions or the issue cost at which the purchaser and dealer are willing to purchase and
their exchanges are to be showed up on the screen, investigating in their separate working
environment or territory since they are connected with a correspondence system. The cost of
the exchange will be finished and affirmation slip will be created at the spot of the
exchanging part.
2. Participants: Participants by and large include banks, extensive financial specialists and
other perceived individuals and foundations are members.
NSE has different focal points over the customary exchanging trade. They are:
 National stock trade makes coordinated securities exchange exchanging system

conceivable the country over.
 Inter-market operations gives financial specialist to exchange the same cost from
anyplace in the nation and access to securities crosswise over nationwide is conceivable.
 With the backing of electronic system delay in installment and correspondence has
overcome with more prominent operational productivity enlightening straightforwardness
in the share trading system operations.
VISION AND MISSION STATEMENT
VISION
“Ensuring the Natural Life Style”
MISSION
“Uncompromised Services”
PRODUCTS & SERVICES
Equity
Putting resources into offers or securities exchange is inarguably the best course to long haul
riches collection. Be that as it may, it can likewise be an exceptionally dangerous suggestion
because of high hazard return exchange off predominant in money markets. Consequently, it is
more fitting to take help of an accomplished and dependable master who will manage you with
respect to when, where and how to contribute.
Sunness Capital India Pvt. Ltd gives direction in the energizing universe of securities
exchange with appropriate exchanging arrangements and esteem added devices and
administrations to improve your exchanging knowledge
Our Services
Online Trading
Excellent online items custom-made for brokers and financial specialists
Customized single screen Market Watch for various trades, MCX and NCDEX with BSE
,NSE &MCX-SX
Streaming cites
Real-time rates
Flash news and intra-day Research reports
Intra-day and verifiable graphs with specialized devices
Online look into
Quality Research
Wide scope of every day, week by week and extraordinary Research reports
Expert Sector Analysts with proficient industry encounter.

The Derivative
The subsidiary portion is a profoundly lucrative market that gives financial specialists a chance
to procure superlative benefits (or misfortunes) by paying an ostensible measure of edge. Over
recent years, Future and Options fragment has developed as a well known medium for
exchanging money related markets. Future contracts are accessible on Equities, Indices,
Currency and Commodities.
Sunness with its participation as Trading and Clearing Member of NSE F&O Segment and BSE
Derivatives Segment, gives you a door to the energizing universe of subordinate market.
Items Derivative market has risen as another road for financial specialists to make riches. Today,
Commodities have advanced as the following best alternative after stocks and bonds for
expanding the portfolio. In light of the essentials of interest and supply, Commodities shape a
different resource class offering financial specialists, arbitrageurs and theorists enormous
potential to gain returns.
SUNNESS ADVANTAGE:
Automated pay-in office.
Access data – Anytime, Anywhere.
Quarterly Demat proclamations with valuation.
Statements on request.
View Demat A/C proclamation on the web.
Competitive exchange charges.
Top quality Research
In house investigate on in excess of 25 items
Highly talented Analysts with proficient industry encounter
Daily, Weekly and Monthly Research Reports

SWOT ANALYSIS
STRENGTHS:
 Strong network in India

 Satisfying the need of the clients
 Meeting up the client requirement in time
 Innovation & creative in advertisement segment
 Quality in advertisement
 Global exposure with higher rewards & appreciation
 Efficient team work environment
 Expertise and experienced workforce
WEAKNESS:
Market share is constrained because of numerous contenders

Geographic infiltration is additionally constrained
OPPORTUNITIES:
Online promoting is another wellspring of income
Adapting new systems for statistical surveying acquires more incomes
Decentralized basic leadership is useful as neighbourhood advertising needs change

starting with one area then onto the next
Entering in global market to attract global clients
THREATS:
 Increasing lawsuits due to sheer negligence in preparation of ads

 Recession may hit the industry as cut is primarily on marketing budget of corporate
 Cut-throat competition offered by other players in the industry
 Challenging stiff competition from its competitors from both domestic and international
levels
 Changes in the taste and preferences of clients.
Competitors Information
1. Sharekhan:
Sharekhan is one of the main retail breakage of City Venture which is running effectively
from 1922 in the nation. Sharekhan renders its clients a broad assortment of significant
worth related organizations including trade execution on BSE, NSE, Derivatives, store
organizations, web exchanging,venture direction et cetera.
2. Angel Broking Limited:

Angel Broking, Ltd. provides retail personal financial services in India. The company offers e-
broking, portfolio management, mutual fund, private client group, commodities broking,
investment advisory, wealth management, IPO, and depository services. The company was
founded in 1987 and headquarters in Mumbai, India.
3. Karvy Stock Broking Limited:

Karvy Stock Broking Limited gives stock broking and research admonitory administrations in
India. The organization offers portfolio investigation, safe member, and money related arranging
and administration administrations for people and institutional customers. Extra to that, a month
to month magazine, Fin polis, which gives up-dated business sector data on business sector
patterns, speculation alternatives, and suppositions. The organization was established in 1990
and is situated in Hyderabad, India. Karvy Stock Broking Ltd. works as an auxiliary of Karvy
Consultants Limited.
4. MotilalOswal Securities Ltd:

MotilalOswal Securities is a leading research and counselling based on stock broking house of
India, with predominant situation in both institutional and retail broking. MotilalOswal Securities
Provide guidance based broking both with values and subsidiaries, portfolio management
services(PMS), e-broking, store administrations, items exchanging, IPO and mutual fund
speculation consultative administrations, has seen fast natural growth.FY05 and FY06 saw the
organization become inorganically through procurement of three critical local broking firms
from Andhra Pradesh, Karnataka and Kerala.
5. VLS FINANCE LTD:
VLS Group is a multi-faceted multi-divisional incorporated monetary administrations bunch

with significant vicinity in every aspect of money related administrations, for example, Asset
Management, Strategic Private Equity Investments, Arbitrage and all the more especially in
Stock broking and Corporate Consulting and Advisory Services. The current business sector
capitalization remains at Rs177.07 crore. The organization has reported a standalone offers of
Rs 896.82 crore and a Net Profit of Rs 1.76 crore for the quarter finished September 2017.
6. BNK SECURITIES PRIVATE LTD:
BNK Securities Pvt. Ltd. (ISO 9001:2008 Certified) is the individual from National Stock
Exchange, Bombay Stock Exchange, DP with CDSL and the organization is additionally the
individual from MCX-SX and Calcutta Stock Exchange (CSE). It gives broking and vault
administrations to a great deal of high total assets speculators, corporate and business houses,
money related establishments, banks and common assets. It is likewise included in circulation of
money related items. The present business sector capitalization remains at Rs 48.85 crore.
7 GEOJIT BNP PARIBAS:
Geojit BNP Paribas has participation in, and is recorded on, the National Stock Exchange (NSE)
and the Bombay Stock Exchange (BSE). The organization rides on its rich involvement in the
capital business sector to offer its customers a wide arrangement of reserve funds and venture
arrangements. The extent of quality included items and administrations offered ranges from
values and subsidiaries to Mutual Funds, Life and General Insurance and outsider Fixed
Deposits. The present business sector capitalization remains at Rs 869.44 crore. The organization
has reported a combined offers of Rs 66.38 crore and a Net Profit of Rs 17.65 crore for the
quarter finished December 2017.
8. R K GLOBAL SHARES and SECURITIES LTD:
R K Global is India based quickest developing Share and Commodity Broking Company. RK
Global propelled its retail facilitating business in year 2004 and from that point forward become
exponentially. Organization today gives administrations under Values, Derivatives,
Commodities, Currency, Depository, IPO Distribution, Mutual Fund Distribution and
Consultancy locales. RK Global today has Pan India vicinity with its item offerings in more than
150 urban communities crosswise over India however its business partners.
9. ZERODHA
Zerodha is a Bangalore; India based Flat Free Share Broker for exchanging Stock, Commodity
and Currency Derivative. It charges financier of 0.01% or Rs 20 per executed request, whichever
is lower, independent to number of shares or their costs .Zerodha is first and No. 1 markdown
specialist in India by volume, number of clients and development. Like other online stock
exchanging organizations, Zerodha offers exchanging administrations to purchase and offer
stocks, fates and alternatives (in Equity, Currency and Commodity portions). Zerodha's offer
exchanging stage is fueled by Omnesys 'Home Trader'
ANALYSIS OF FINANCIAL STATEMENT
Table 2.2: Balance Sheet of SUNNESS Finance (in crores for 12

months)
Mar'16 Mar'17
Sources Of Funds
Total Share Capital 12.20 12.34
Equity Share Capital 12.20 12.34
Share Application Money 0.00 0.00
Preference Share Capital 0.00 0.00
Reserves 146.00 142.12
Net worth 158.20 154.46
Secured Loans 40.19 141.71
Unsecured Loans 39.04 0.00
Total Debt 79.23 141.71
Total Liabilities 237.43 296.17
Application Of Funds
Gross Block 2.01 1.92
Less: Revaluation Reserves 0.00 0.00
Less: Accum. Depreciation 1.24 1.09
Net Block 0.77 0.83
Capital Work in Progress 0.00 0.00
Investments 36.84 40.71
Inventories 29.33 42.94

Sundry Debtors 0.38 0.05
Cash and Bank Balance 23.70 25.99
Total Current Assets 53.41 68.98
Loans and Advances 154.11 211.83
Fixed Deposits 0.00 0.00
Total CA, Loans &Advances 207.52 280.81
Deferred Credit 0.00 0.00
Current Liabilities 4.48 22.78
Provisions 3.22 3.39
Total CL &Provisions 7.70 26.17
Net Current Assets 199.82 254.64
Miscellaneous Expenses 0.00 0.00
Total Assets 237.43 296.18
Contingent Liabilities 8.34 8.34
Book Value(Rs) 129.69 125.13

Table 2.3: Consolidated Profit & Loss account of SUNNESS Finance
(2016-17)
Mar '16 Mar '17
Income
Sales Turnover 73.13 76.53
Excise Duty 0.00 0.00
Net Sales 73.13 76.53
Other Income 2.27 2.21
Stock Adjustments 0.00 0.00
Total Income 75.40 78.74
Expenditure
Raw Materials 0.00 0.00
Power & Fuel Cost 0.00 0.00
Employee Cost 23.67 19.92
Other Manufacturing Expenses 0.00 0.00
Selling and Admin Expenses 0.00 0.00
Miscellaneous Expenses 27.34 26.61
Preoperative Exp Capitalized 0.00 0.00
Total Expenses 51.01 46.53
Operating Profit 22.12 30.00
PBDIT 24.39 32.21
Interest 21.96 23.40
PBDT 2.43 8.81
Depreciation 1.77 1.80

Other Written Off 0.00 0.00
Profit Before Tax 0.66 7.01
Extra-ordinary items 0.00 0.00
PBT (Post Extra-ord Items) 0.66 7.01
Tax -1.87 3.57
Reported Net Profit 2.52 3.45
Minority Interest 0.00 0.00
Share Of P/L Of Associates 0.00 0.00
Net P/L After Minority Interest & Share Of Associates 2.52 3.45
Total Value Addition 51.01 46.53
Preference Dividend 0.00 0.00
Equity Dividend 2.44 2.46
Corporate Dividend Tax 0.40 0.40
Per share data (annualized)
Shares in issue (lakhs) 121.98 123.44
Earnings Per Share (Rs) 2.07 2.79
Equity Dividend (%) 0.00 0.00
Book Value (Rs) 125.50 125.00
ANALYISIS:
Financial statement is an analysis which highlights important relationship in the financial
statements. It is helps to assessing performance and in planning future performance.
 The equity share capital of the company decreased in the year 2016-17 is Rs
0.14crs compared to previous year 2015-16.
 The reserve and surplus of the company in the year 2016-17 was 146crs as
compared to previous year 2015-16 it was 142.12crs.
 The investment of the company in the year 2017 was decreased to 36.84 as
compared to previous year 2016 was 40.71. The investment has been decreased by
9.51% in 2017.
 Total net current asset in year 2016-17 was 199.82 as compared to previous year
2015-16 was 254.64. It had been decreased by 21.53%.
 Current liabilities of the company in the year 2017 were decreased to 4.48 as
compared to previous year 2016 was 22.78. The current liability has been decreased
by 80.33 in 2017.
 Total income is decreased by 3.34crsin the year 2016-17 compared to previous year
2015-16.
 A total expense is increased from Rs 46.53 in theyear2015-16 to Rs 51.01in the
year 2016-17.
 Net profit decreased in the year 2016-17 isRs0.93crs compared to previous year
2015-16.
 Earnings per share of the company increased by 34.78% over its previous year.
CHAPTER-3
THEORETICAL BACKGROUND OF THE STUDY
MUTUAL FUND:
investors contribute money in securities for a secure purpose, it is a group of mutual funds. and
invest it for example, securities, stocks, currency market instruments and comparable resources.
Mutual funds are worked by asset chiefs, who contributes the asset's capital and make an
endeavour to deliver profits in order to increase the wealth of the investors and earn income.
Those who contribute to the pool are the ones who get the benefit. Investors get the benefit in the
proportion to the investors share in the pool. Investment objective describes the mutual fund
product. Investment objective defines the risk return profile of the fund. While investing,
investors have to match their objectives with the funds. Mutual funds are first offered to an
investor in a NFO (New fund offer).
WORKING OF A MUTUAL FUND
A Mutual Fund trusts that, the store funds of different speculators who share a typical monetary
objective. The trade out along these lines accumulated is then placed assets into capital business
division instruments, for instance, shares, debentures and distinctive securities. The
compensation earns during the endeavours and the capital thanks recognized are shared by its
unit holder in degree to amount of units guaranteed through them. Thusly Mutual Fund is mainly
appropriate theory for the essential man as it offers an opportunity to place assets into a widened,
efficiently administered mutual fund.
Advantages of mutual funds

i) Professional Investment administration:
Mutual funds enlist full-time, abnormal state venture experts, as they oversee expansive pools of
cash. The directors have availability to essential business sector data and can execute exchanges
on the expansive and most practical scale.
ii) Diversification:
Mutual funds put resources into an extensive variety of securities. By this the venture danger will
be decreased by conceivable decrease of estimation in any one security. Common asset unit-
holders will profit by expansion procedures which are accessible to financial specialists.
iii) Low Cost
A mutual fund permit to contribute with a minimum amount of Rs.5,000/-, & sometimes
with even lesser amount. What's more, there are no business charges to possess them.
iv) Convenience and Flexibility
One can maintain only one security instead of various; however realize every one of the
compensation of an expanded portfolio and wide variety of administration. Shared store
likewise utilizes the administrations of a brilliant overseer and recorder keeping in mind the
end goal to ensure that speculator's luxury stays at the top.
v) Personal Service
Can without much of a stretch connect with a pro who can give all of you data in regards to the
venture. These authorities will give financial specialists individual help with giving asset data,
purchasing and offering the asset units and answer inquiries about speculators account status.
vi) Liquidity
In open-ended schemes, one can get back the cash quickly at NAV related costs from the
mutual fund itself.
vii) Transparency
Financial specialists get standard data on the estimation of interest notwithstanding exposure
on the exacting speculations.
Disadvantages of mutual funds

1. Professional Management: several funds don't execute in neither the business sector, as
their administration is not sufficiently active to investigate the accessible open door in
business sector.
2. Costs: The greatest wellspring of AMC wage is by and large from section and leave load
which they do charge from financial specialists, on the season of procurement. The mutual
fund commercial ventures are charging additional expense under layers of specialized
grounds.
3. Dilution: Funds have little possessions crosswise over various organizations, significant
yields from a couple investments; don’t have a lot effect on a general return. Weakening is
likewise the consequence of an effective asset getting too huge. And manager finds it difficult to
get good investment.
4.Taxes: Fund chiefs don't consider your own expense circumstance. Case in point, when
an asset supervisor offers security, capital-pick up expense is activated, which influences
how gainful individual is commencing the deal.
TYPES OF MUTUAL FUND SCHEMES
Open ended scheme

Open ended assets are sold at the NAV based costs, which are figured on every Brokerage day.
These plans have boundless capitalization, and don't have a settled development.
Close-ended plans
Plans that have a predetermined development stage, limited capitalization and the units recorded
on the stock trade are called close-ended plans. Close-ended plans, generally, have seen a
gigantic membership. This fame is assessed to be virtue of firstly, open area MFs having drifted
close-ended wage plans with ensured returns and also simple liquidity because of posting on the
stock trades.
Interval schemes
Interval Schemes joins open-ended and close-ended plans’ elements. The units might be
exchange on the stock trade or accessible openly to purchase or retrieval among pre-decided time
periods at NAV related costs.
According to investment objective:

Mutual funds have express speculation goals, for example, development of capital, essential
wellbeing, current wage or expense excluded pay. When all is said in done mutual funds fall into
3 general classifications:
EQUITY FUNDS: Investments in shares or value of organizations.
FIXED-INCOME FUNDS: Investments in government or corporate securities that offer altered

returns.
BALANCED FUNDS: Combined investments of securities and stocks.
Growth schemes:
Improvement plans are generally called esteem designs. The purpose of these plans is to give
capital increment more than medium to longhair. These plans for the most part contribute a
noteworthy piece of their asset in values and are willing to endure fleeting decrease in worth for
conceivable future admiration.
Income Schemes:
Income Schemes also called as debt schemes. The purpose of these plans is to give consistent
and relentless wage to budgetary masters. These designs place capital into changed pay
securities, for instance, securities and corporate debentures. Capital thankfulness in such plans
may be restricted.
Balanced Schemes:
Adjusted Schemes hope to give advancement besides pay by spreading a piece of the pay and
capital expands they secure. These designs place assets into shares and settled wage securities,
the degree appeared in their offer reports i.e. 50:50.
Money Market Schemes:

Money Market Schemes expect ensured liquidity, shielding of capital and mild pay. These
designs normally place assets into more secure, transient instruments, for instance, treasury
charges, confirmations of store, business paper, and between bank call money.
OTHER SCHEMES
Tax-Saving Schemes:
Tax-saving schemes assessment discounts to the speculators under expense laws endorsed every
now and then. Under Section 88 of the Income Tax Act, commitments made to Equity-Linked
Savings Scheme (ELSS) are qualified to refund.
SPECIAL SCHEMES
Index Schemes:
An index plan displays the execution of a specific record, for example, the BSE Sense or the
NSE 50. The strategy of these plans will contain just people stocks that speak to the once-over.
The rate of each stock to the aggregate holding will be ambiguous to the weight period of stocks
rundown. Thusly, the advantages from these courses of action would be fundamentally equal to
the advantages of the Index.
Sector Specific Schemes:

This plans that put resources into the securities of businesses indicated in the offer archives. For
example, Pharmaceuticals, Software, FMCG, Petroleum stocks, et cetera. The benefits in these
advantages are dependent on the execution of the person commercial ventures. Outline of actives
in mutual fund class.
BY NATURE
1. Equity fund:
 This contribute most outrageous bit of the hypothesis in values belonging. The structure of
an asset might shift from various plans and the asset administrator's point of view toward
various stocks.
 The Equity Funds are further arranged relying on their speculation objective, as takes
after:
 Diversified Equity Funds
 Mid-Cap Funds
 Sector Specific Funds
2. Debt funds:
The guideline expectation of these Funds is to place assets into commitment papers. Government
powers, exclusive organizations, banks and cash related establishments are a part of the genuine
distributers of commitment papers. By placing assets into commitment instruments, these
benefits ensure for the most part protected and give stable pay to the money related masters.
Commitment resources are additionally named:
Guild Funds: Investing their trade out securities issue by Govt, predominantly known as GOI
commitment papers. This Funds pass on zero Default danger regardless, are associated with
Interest Rate peril. These designs are more secure as they place assets into papers maintained by
Government.
Pay Funds: Investing an essential piece into various commitment instruments, for instance,
securities, corporate debentures and Government securities.
MIPs: Invest most outrageous of their total amount under fluid instrument while they take
minimum presentation in values. It is benefitted of both esteem and commitment showcase.
These arrangement positions to some degree high than the risk return organize when
differentiated and commitment designs.
Short term Plans (STPs): These assets fundamentally put resources into fleeting papers, for
example, COD and CP’s. The segment of the corpus is likewise put resources into corporate
debentures.
Liquid Funds: These assets give simple liquidity and conservation of capital, subsequently
otherwise called Money Market Schemes. These plans put resources into transient instrument
like Treasury Bills, between bank call currency business sector, CPs and CDs. These assets are
known for fleeting money administration of corporate houses and are implied for speculation
skyline of 1day to 3 months. These plans rank low on danger return framework and are thought
to be most secure between all classifications of mutual funds.
3. Adjusted assets:
These assets are a mix of both value and obligation reserves. They put resources into both values
and altered wage securities, which are in accordance with pre-characterized speculation target of
the plan. Value part gives development and the obligation part gives solidness consequently.
RISK RETURN
The risk return exchange off shows that if financial specialist is willing to go for broke than
respectively he can imagine high profits and tight clamp versa in the event that he relates to
lower danger instrument, which would be fulfilled by lower profits. Case in point, if speculators
run with bank FD, which give moderate return insignificant danger. Be that as it may, as he
advances to bond that provide out supplementary return which is somewhat higher when
contrasted with the bank stores however the danger included likewise increments in the
equivalent extent. In this manner financial specialists pick mutual funds as their essential method
for contributing, as Mutual assets give proficient administration, expansion, accommodation and
liquidity.
That does not mean common asset speculations are without hazard. Flexible investments include
high hazard since it is for the most part exchanged the subordinates market which is considered
exceptionally unpredictable.
Managing risk
To lessen your venture hazard impressively and achieve your long haul money related objectives
Mutual assets offer unimaginable adaptability in overseeing speculation hazard. Expansion and
Automatic Investing (SIP) are two key methods.
Broadening
When you put resources into one common asset, you quickly spread your danger over various
organizations. One can likewise enhance more than a few sorts of securities by putting resources
into various mutual funds, further lessening your potential danger. Expansion is a fundamental
danger administration instrument that you will need to utilize all through your life span as you
rebalance your portfolio to gather your altering needs and objectives.
Evaluating portfolio Performance

It’s essential to estimate the execution of portfolio is a in progress premise. The accompanying
element is imperative in this procedure: Considered long haul track record instead of transient
execution. In addition, longer-term track record adjusts for the impacts of an asset administrator's
specific venture style. Accomplishment in dealing with a little or in an asset concentrating on a
specific section of the business sector can't be depended upon as a confirmation of foreseen
execution in dealing with an extensive or an expansive based asset. Discipline in speculation
methodology is an essential variable as the weight to perform can make an asset chief presented
to have a desire to change tracks as far as stock determination and also venture technique. The
goal ought to be to separate speculation ability of the asset administrator from fortunes and to
recognize those assets with the best capability of future achievement.
SEBI registered mutual funds:

 FORTIS Mutual fund.
 Benchmark Mutual fund.
 DSP Blackrock Mutual fund.
 HDFC Mutual fund.
 HSBC Mutual fund.
 ICICI Securities Fund.
 Reliance vision fund.
 ICICI Prudential Mutual fund.
 IDFC Mutual fund.
On off chance that the grievances remain unresolved, the speculators might approach SEBI for
encouraging redressed of their dissensions. On receipt of grumblings, SEBI brings up the matter
with the concerned Mutual Fund and catches up with it routinely. Financial specialists might
send their dissensions to: SEBI office of speculator help and education (OIAE) Exchange court,
"G" block,4th floor, Bandar (e) ,Mumbai-400051
5 Ways to measure the mutual fund risk
The wholesalers have a vast assortment of items to offer to the imminent financial specialists. In
any case, there is gigantic number of organizations offering comparative items to the speculators.
Subsequently there are substantial quantities of common asset items offered in the business
sector. In this way, there ought to be a few variables, which will think about these AMCs. These
similar elements are:
CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
EQUITY SCHEMES
Sundaram Growth Fund calculations
Year Return(Y) Market XY X2 Y-Y1 (Y-Y1)2
Index (X)
31st Mar-13 -19.00 -9.10 172.90 82.81 -20.25 410.06
31st Jun-13 2.50 8.50 21.25 72.25 1.25 1.56
31stSep-13 16.70 7.20 120.24 51.84 15.45 238.70
31stDec-13 -0.70 -8.20 5.74 67.24 -1.95 3.80
31stMar-14 -9.20 -5.00 46.00 25.00 -10.45 109.20
31stJun-14 -1.10 -7.50 8.25 56.25 -2.35 5.52
31stSep-14 11.20 9.00 100.80 81.00 9.95 99.00
31stDec-14 -6.80 -7.90 53.72 62.41 -8.05 64.80
31stMar-15 15.20 -8.60 -130.72 73.96 13.95 194.60
31stJun-15 -3.20 -8.20 26.24 67.24 -4.45 19.80
31stSep-15 -8.80 -8.40 73.92 70.56 -10.05 101.00
31stDec-15 4.50 9.20 41.40 84.64 3.25 10.56
31stMar-16 -10.70 -9.00 96.30 81.00 -11.95 142.80

31stJun-16 1.30 -6.00 -7.80 36.00 0.05 0.01
31stSep-16 4.30 9.50 40.85 90.25 3.05 9.30
31stDec-16 11.70 8.50 99.45 72.25 10.45 109.20
31stMar-17 5.80 9.50 55.10 90.25 4.55 20.70
31stJun-17 3.4 8.6 29.24 73.96 2S.15 4.62
31stSep-17 3.2 7.9 25.28 62.41 1.95 3.80
31stDec-17 4.6 9.9 45.54 98.01 3.35 11.22
Total 24.90 9.90 923.70 1399.33 1560.24
Y1 1.25
BETA TREYNOR’S MEASURES

n∑XY−(∑X)(∑Y) Rp−Rf
β= TI = β
{n∑x2 −(∑X)2 }
24.9−8
20(923.7)−(9.9)(24.9) TI = 0.654
β=
{20(1399.33)−(9.9)2 }
TI = 25.841
18227.49
β=
27888.59 JENSEN’S PERFORMANCE
MEASURES
β =0.654 J = Rp-SML
STANDARDDEVIATION J =24.9-9.243
SD=√(Y − Y1)2/n − 1
J =15.657
SD=√1560.24/(20 − 1)
SD=√82.118
SD=9.062
SHARPE’SMEASURES
Rp−Rf
SI=
SD
24.9−8
SI=
9.062
SI= 1.865
Interpretation:
Beta value is less than 1 which shows that fund is less risky. Standard deviation shows that the
fund is lesser volatile, and would yield good returns. Through Sharpe’s measures it implies that
there is greater risk as the value is higher than 1. The investor can rely upon this scheme has the
Jensen measure shows a highly positive yielding higher returns.
Sundaram Select Mid Cap calculations:

Index (X)
31st Mar- -10.50 -11 115.5 121 -12.05 145.2

13
31st Jun-13 4.50 8.00 36.00 64.00 2.95 8.70
31stSep-13 16.10 8.00 128.80 64.00 14.55 211.70
31stDec-13 -11.20 -9.60 107.52 92.16 -12.75 162.56
31stMar-14 -11.30 -10.50 118.65 110.25 -12.85 165.12
31stJun-14 3.90 -7.40 -28.86 54.76 2.35 5.52
31stSep-14 -8.30 -9.20 76.36 84.64 -9.85 97.02
31stDec-14 -10.80 11.50 -124.20 132.25 -12.35 152.52
31stMar-15 17.60 -9.20 -161.92 84.64 16.05 257.60

31stJun-15 -3.50 -8.50 29.75 72.25 -5.05 25.50
31stSep-15 15.10 -10.50 -158.55 110.25 13.55 183.60
31stDec-15 3.50 6.20 21.70 38.44 1.95 3.80
31stMar-16 -10.50 8.60 -90.30 73.96 -12.05 145.20
31stJun-16 -0.20 -9.90 1.98 98.01 -1.75 3.06
31stSep-16 -3.40 9.30 -31.62 86.49 -4.95 24.50
31stDec-16 10.70 9.70 103.79 94.09 9.15 83.72
31stMar-17 -2.40 6.70 -16.08 44.89 -3.95 15.60
31stJun-17 14.60 8.90 129.94 79.21 13.05 170.30
31stSep-17 7.80 9.80 76.44 96.04 6.25 39.06
31stDec-17 8.20 9.50 77.90 90.25 6.65 44.22
Total 30.90 10.40 428.95 1691.58 1944.50
Y1 1.55

β= TI =
β
{n∑x2 −(∑X)2 }
30.9−8
20(428.95)−(10.4)(30.9) TI =
β= 0.245
{20(1691.95)−(10.4)2 }
TI = 93.469
8257.64
β=
33730.84 JENSEN’S PERFORMANCE
MEASURES
β =0.245 J = Rp-SML
STANDARD DEVIATION J = 30.9-8.588
J = 22.312
SD=√(Y − Y1)2/n − 1
SD=√1944.5/(20 − 1)
SD=√102.342
SD=10.116
SHARPE’S MEASURES
Rp−Rf
SI=
SD
30.9−8
SI=
10.116
SI= 2.264
Interpretation:
The investor can rely upon this scheme as it is highly positive with relation to Jensen’s measures.
Beta value is less than 1 which shows that fund is less risky compared to market. Standard
deviation shows that the fund is lesser volatile, and would yield good returns. But has greater risk
as Sharpe’s measures implies.
Sundaram SMILE Fund calculations:

Index(X)
31st Mar-13 -13.80 -9.50 131.10 90.25 -15.28 233.48
31st Jun-13 4.60 6.20 28.52 38.44 3.12 9.73
31stSep-13 14.00 8.40 117.60 70.56 15.52 240.87
31stDec-13 -6.70 -9.20 61.64 84.64 -8.18 66.91

31stMar-14 -14.30 -10.20 145.86 104.04 -15.78 249.00
31stJun-14 -10.10 -2.00 20.20 4.00 -11.58 134.10
31stSep-14 -7.60 -3.50 26.20 12.25 -9.08 82.45
31stDec-14 -15.20 4.80 -72.96 23.04 -16.68 278.22
31stMar-15 21.80 8.20 178.76 67.24 20.32 412.90
31stJun-15 -0.30 -2.20 0.66 4.84 -1.78 3.17
31stSep-15 10.10 9.90 99.99 98.01 8.68 75.34
31stDec-15 5.60 4.20 23.52 17.64 4.12 16.97
31stMar-16 -18.90 -6.40 120.96 40.96 -20.38 415.34
31stJun-16 -5.80 -7.70 44.66 59.29 -7.28 52.99
31stSep-16 -3.40 -8.80 29.92 77.44 -4.88 23.81
31stDec-16 21.90 9.20 201.48 84.64 20.42 416.98
31stMar-17 6.00 -8.20 -49.20 67.24 4.52 20.43
31stJun-17 17.00 9.30 158.10 86.49 15.52 240.87
31stSep-17 12.30 9.80 120.54 96.04 10.82 117.07
31stDec-17 12.40 9.90 122.76 98.01 10.92 119.25
Total 29.60 12.20 1510.31 1225.06 3209.88
Y1 1.48
BETA TREYNOR’SMEASURES
β= TI =
{n∑x2 −(∑X)2 } β
20(1510.31)−(12.2)(29.6) 29.6−8
β= TI =
{20(1225.06)−(12.2)2 } 1.225
TI = 17.633
29845.08
β=
24361.36
JENSEN’SPERFORMANCE
β =1.225 MEASURES
J = Rp-SML
STANDARDDEVIATION
J = 29.6-13.145
SD=√(Y − Y1)2/n − 1
SD=√3209.88/(20 − 1) J = 16.455
SD=√168.941
SD=12.998
SHARPE’S MEASURES
Rp−Rf
SI=
SD
29.6−8
SI=
12.998
SI= 1.662
Interpretation:
The beta value is more than 1 which shows that the fund is under high risk. And it is also risky as the
Sharpe’s measures is more than 1. It is highly volatile and standard deviation value is high.
Sundaram Tax Saver calculations:

Index(X)
31st Mar-13 -25.00 -12.00 300.00 144.00 -26.67 711.29
31st Jun-13 1.80 -6.00 -10.80 36.00 0.13 0.02
31stSep-13 14.70 -8.20 -120.54 67.24 13.03 169.78
31stDec-13 14.10 -9.20 -129.72 84.64 12.43 154.50
31stMar-14 -10.20 -11.20 114.24 125.44 -11.87 140.90
31stJun-14 -3.20 8.00 -25.60 64.00 -4.87 23.72
31stSep-14 -8.80 -6.20 54.56 38.44 -10.47 109.62
31stDec-14 -6.70 -8.50 56.95 72.25 -8.37 70.06
31stMar-15 17.50 11.50 201.25 132.25 15.83 250.59
31stJun-15 -2.70 8.30 -22.41 68.89 -4.37 19.10
31stSep-15 10.00 9.20 92.00 84.64 8.33 69.39
31stDec-15 4.10 -7.60 -31.16 57.76 2.43 5.90
31stMar-16 -7.40 -5.20 38.48 27.04 -9.07 82.26
31stJun-16 -0.10 5.70 -0.57 32.49 -1.77 3.13
31stSep-16 -4.80 7.70 -36.96 59.29 -6.47 41.86
31stDec-16 12.10 8.20 99.22 67.24 10.43 108.78
31stMar-17 5.50 2.60 14.30 6.76 3.83 14.67
31stJun-17 14.00 9.80 137.20 96.04 12.33 152.03
31stSep-17 3.20 3.30 10.56 10.89 1.53 2.34
31stDec-17 5.30 8.20 43.46 67.24 3.63 13.18

Total 33.40 8.40 784.46 1342.54 2143.12
Y1 1.67

Rp−Rf
TI =
n∑XY−(∑X)(∑Y) β
β=
{n∑x2 −(∑X)2 }
33.4−8
TI =
0.575
20(784.46)−(8.4)(33.4)
β=
{20(1342.54)−(8.4)2 } TI = 44.174
15408.64 JENSEN’SPERFORMANCEM
β=
26780.24
EASURES
J = Rp-SML
β =0.575
J = 33.4-8.230
STANDARDDEVIATION
J = 25.17
SD=√(Y − Y1)2/n − 1
SD=√2143/(20 − 1)
SD=√112.789
SD=10.620
SHARPE’SMEASURES
Rp−Rf
SI=
SD
33.4−8
SI=
10.620
SI= 2.392
Interpretation:
fund is lesser volatile, and would yield good returns. It is highly risky with no risk-adjusted
return.
Sundaram Balance Fund calculations:

Index (X)
31st Mar-13 -2.70 -8.70 23.49 75.69 -3.66 13.40
31st Jun-13 3.40 -9.30 -31.62 86.49 2.44 5.95
31stSep-13 11.30 -12.20 -137.86 148.84 10.34 106.92
31stDec-13 -0.40 8.30 -3.32 68.89 -1.36 1.85
31stMar-14 -18.30 -2.10 38.43 4.41 -19.26 370.95
31stJun-14 -4.20 -5.40 22.68 29.61 -5.16 26.63
31stSep-14 -8.90 -6.30 56.07 39.69 -9.86 97.22
31stDec-14 -4.90 -5.80 28.42 33.64 -5.86 34.34
31stMar-15 10.60 6.30 66.78 36.69 9.64 92.93
31stJun-15 - 2.30 - 5.29 -.96 0.92
31stSep-15 5.60 -6.20 -34.72 38.44 4.64 21.53
31stDec-15 2.70 9.20 24.84 84.64 1.74 3.03
31stMar-16 -4.90 4.30 -21.07 18.49 -5.86 34.34
31stJun-16 0.90 6.30 5.67 39.69 -0.06 0.03
31stSep-16 -1.50 -5.40 8.10 29.16 -2.46 6.05
31stDec-16 8.40 7.90 66.36 62.41 7.44 55.35
31stMar-17 3.20 4.30 13.76 18.49 2.24 5.02

31stJun-17 11.50 9.20 105.80 84.64 10.54 111.09
31stSep-17 0.50 8.10 4.05 65.61 -0.46 0.21
31stDec-17 6.80 9.70 65.96 94.09 5.84 34.11
Total 19.10 14.50 301.82 1064.90 1021.87
Y1 0.96
β= TI =
{n∑x2 −(∑X)2 } β
20(301.82)−(14.5)(19.1)
β= 19.1−8
{20(1064.9)−(14.5)2 }
TI =
0.273
5759.45
β= TI = 40.659
21087.75
β =0.273 JENSEN’SPERFORMANCEM
EASURES
STANDARDDEVIATION J = Rp-SML
SD=√(Y − Y1)2/n − 1 J =19.1-9.775
J = 9.325
SD=√1021.87/(20 − 1)
SD=√53.783
SD=7.334
SHARPE’SMEASURES
Rp−Rf
SI=
SD
19.1−8
SI=
7.334
SI= 1.513
Interpretation:
Beta value is less than 1 which shows that fund less risky in comparison of market. Standard
deviation shows that the fund is lesser volatile, and would yield good returns. It is less riskier
with relation to Jensen’s measures.
Sundaram Equity Multiplier calculations:

Index (X)
31st Mar-13 -2.60 -8.30 21.58 68.89 -3.77 14.21
31st Jun-13 1.90 -3.30 -6.27 10.89 0.73 0.53
31stSep-13 -10.20 9.20 -93.84 84.64 -11.37 129.28
31stDec-13 -2.90 -7.50 21.75 56.25 -4.07 16.56
31stMar-14 -8.40 -6.30 52.92 39.69 -9.57 91.58
31stJun-14 2.70 -8.80 -23.76 77.44 1.53 2.34
31stSep-14 11.30 4.30 48.59 18.49 10.13 102.62
31stDec-14 9.10 -2.10 -19.11 4.41 7.93 62.88
31stMar-15 14.30 10.20 145.86 104.04 13.13 172.39
31stJun-15 -3.60 -0.30 1.08 0.09 -4.77 22.75
31stSep-15 -11.50 -4.50 51.75 20.25 -12.67 160.53
31stDec-15 -4.90 -6.20 30.38 38.44 -6.07 36.84
31stMar-16 -14.00 -8.20 114.80 67.24 -15.17 230.13

31stJun-16 -2.30 7.70 -17.71 59.29 -3.47 12.04
31stSep-16 -4.20 -6.30 26.46 39.69 -5.37 28.84
31stDec-16 15.70 9.10 142.87 82.81 14.53 211.12
31stMar-17 3.50 7.50 26.25 56.25 2.33 5.43
31stJun-17 15.40 8.20 126.28 67.24 14.23 202.49
31stSep-17 3.70 4.40 16.28 19.36 2.53 6.40
31stDec-17 10.30 9.60 98.88 92.16 9.13 83.36
Total 23.30 8.40 765.04 1007.56 1592.32
Y1 1.17
β= TI =
β
{n∑x2 −(∑X)2 }
23.3−8
TI =
0.752
20(765.04)−(8.4)(23.3)
β =
{20(1007.56)−(8.4)2 } TI = 20.346
15105.08 JENSEN’SPERFORMANCEM
β=
20020.64 EASURES
J = Rp-SML
β =0.752
J = 23.3-8.301
STANDARDDEVIATION
SD=√(Y − Y1)2/n − 1 J = 14.999
SD=√1592.32/(20 − 1)
SD=√83.806
SD=9.155
SHARPE’S MEASURES
Rp−Rf
SI=
SD
23.3−8
SI=
9.155
SI= 1.671
Interpretation:
fund is lesser volatile, and would yield good returns. Sharpe’s measures is more than one hence it
more volatile. Jensen’s performance measures show it is less risky comparatively with other
schemes.
Ranking of Sundaram Equity Schemes based on Returns:
S NO. SCHEMES NAMES VALUES RANKINGS

1 Sundaram tax saver 1.67 1
2 Sundaram select mid cap 1.55 2
3 Sundaram smile fund 1.48 3
4 Sundaram growth fund 1.25 4
5 Sundaram equity multiplier 1.17 5
6 Sundaram balance fund 0.96 6
Analysis:
Sundaram tax saver scheme is leading at the 1st with the value of 1.67, followed by Sudaram
select mid cap with value of 1.55 and at last ranking its Sudaram balance fund scheme with the
value 0.96.Sundaram tax saver, Sundaram select mid cap, Sundaram smile fund have a very
close competition when we look at their values.
Values based on returns
SUNDARAM BALANCE FUND 0.96
SUNDARAM EQUITY MULTIPLIER 1.17
SUNDARAM GROWTH FUND 1.25
SUNDARAM SMILE FUND 1.48
SUNDARAM SELECT MID CAP 1.55
SUNDARAM TAX SAVER 1.67
0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8

Values of Sundaram Equity Scheme based on returns
Interpretation
From above graph we can interpret that the Sundaram Tax Saver fund is more risky fund and is
performing good compare to all funds because its having more return than other funds so the
investors have to go for investing in Sundaram Tax saver, but Sundaram Balance Fund was not
taken more risk so it’s having less return compare to all.
Ranking of Sundaram Equity Schemes based on Beta:

Analysis
The Sundaram SMILE Fund is leadingwith the highest beta value compared to the other funds
that is 1.225 hence securing the 1st rank with relation to the beta value analysis. The Sundaram
Select Mid Cap is having very less beta value of 0.245 standing at last rank.
Values of Sundaram Equity Schemes based on Beta:

Values based on beta

SUNDARAM SMILE FUND
1.225
0 0.2 0.4 0.6 0.8 1 1.2 1.4
Interpretation
From the above the graph we can interpret that Sundaram SMILE Fund have more volatility or
more risk that too above 1. Whereas other Sundaram equity schemes having beta value less
than 1 which shows that the fund’s performance is less than the market index or benchmark.
Ranking of Sundaram Equity Schemes based on Standard Deviation:

Analysis
The Sundaram SMILE Fund is leading at the first with relation to the standard deviation analysis
hence which shows that it is highly volatile hence the returns would also be highly fluctuating.
So we can conclude that it is better to opt for other schemes which have a lesser standard
deviation values.
Values of Sundaram Equity Schemes based on Standard Deviation:
Values based on Standard Deviation
0 2 4 6 8 10 12 14
Interpretation
From the above graph we can interpret that standard deviation of Sundaram SMILE Fund is
having higher value than the other funds so it says that its past performance have been more
unstable and its having more risk but Sundaram balance fund is less risky in nature because its
value is lesser than the other funds.
Ranking of Sundaram Equity Schemes based on Sharpe’s measures:

Analysis
The Sundaram Tax Saver is having highest value of 2.392 which shows that it is better
investment with its risk adjusted performance and it would also yield good returns with not much
additional risks attached to it.
Values of Sundaram Equity Schemes based on Sharpe’s measures:
Values based on Sharpe's measures

0 0.5 1 1.5 2 2.5 3
Interpretation
From the above graph we can interpret that the Sundaram Tax Saver is a smart investment fund
to invest because it is performing good and it’s more risky fund in nature and having more value
compare to the other funds and through this fund investor can reap more return, but Sundaram
Balance fund is not having more value compare to other funds so it was not more risky.
Ranking of Sundaram Equity Schemes based on Treynor’smeasures:

Analysis
The Sundaram Select Mid Cap is more risky when compared to tax saver scheme, whereby the
value is twice of it. And it shows the investment does not correlate with the underlying
benchmark.
Values of Sundaram Equity Schemes based on Treynor’smeasures:
Values based on Treynor's measures
0 20 40 60 80 100
Interpretation
From the above graph we can interpret that the Sundaram Select Mid Cap is performing
excellent compare to the other equity funds and we can know that its having more market return
through Treynor’smeasures, but other funds is having less volatility in nature of market return
according to the Treynor’s measures.
Ranking of Sundaram Equity Schemes based on Jensen’s Performance measures:

Analysis
The Sundaram Tax Saver fund is showing more performance compare to other fund that is
25.170 and also depicts that it is less riskier earning excess returns when compared to the other
schemes. Sundaram select mid cap would also be a better investment option with relation to
Jensen’s performance measures giving a close competition to Sundaram tax saver scheme with
the value 22.312.
Values of Sundaram Equity Schemes based on Jensen’s Performance measures:
Values based on Jensen's performance measures

30
25 25.17
20 22.312
15 16.455 15.657 14.999
10 9.325
5
0
SUNDARAM SUNDARAM SUNDARAM SUNDARAM SUNDARAM SUNDARAM
TAX SAVER SELECT MID SMILE FUND GROWTH EQUITY BALANCE
CAP FUND MULTIPLIER FUND
Interpretation:
From the above graph we can interpret that Sundaram Select Mid Cap is having more value
according to the Jensen’s performance measures so its earning proper return with the level of its
risk, even this fund is having more positive value so it can earn more returns but compare to all
Sundaram Balance fund is having less value or less volatile.
CHAPTER 5
SUMMARY OF FINDINGS,
SUGGESTIONS & CONCLUSION
FINDINGS:
 In equity schemes the Sundaram Tax Saver is having more return compare to all
equity funds that is 1.67, which is followed by Sundaram select mid cap with the
value of 1.55.
 In Debt schemes the Sundaram Ultra Short Term fund is having more return
compare to all debt funds that is 1.32, whereas Sundaram Flexible Fund is having
less return.
 According to beta in equity schemes Sundaram smile fund performance is more
than the market index or benchmark. Which is having beta value of 1.225
 According to beta the Sundaram Bond Saver is having highest beta value of 0.248
which is less performing compared to market index.
 The Sundaram SMILE fund is having more risk with unstable performance where
its standard deviation is 12.998.
 The Sundaram Ultra Short Term has taken more risk with the unstable return
compare to all debt funds that is 2.719
 According to Sharpe’s measures the Sundaram Tax Saver is the smart investment
mutual fund to reap the more returns while compare to the all equity funds because
this fund was taken more value that is 2.392.
 According to Sharpe’s measures in debt schemes the Sundaram Ultra Short Term
fund with smart invest mutual fund to earn the more return compare to all debt
funds because its having more volatile that is 6.767
 According to the Treynor’s measures that the Sundaram Select Mid Cap is having
more market return with the level of its volatility that is 93.469.
 In debt funds according to the Treynor’s measures the Sundaram Ultra Short Term
was taken more risk with high volatility compare to the all other debt funds that is
252.055.
 According to the Jensen’s Performance measures the Sundaram Tax Saver is
earning proper return compare to the all equity funds and taking more volatility that
is 25.170.
 According to the Jensen’s Performance measures The Ultra Short Term fund is
taking more risk by earning more return while compare to the all debt funds that is
18.280.
SUGGESTIONS
In Sundaram Equity funds the Sundaram Select Mid Cap, Sundaram Tax Saver and Sundaram
SMILE Funds are performing well, according to the tools like Beta, Standard Deviation, sharpe s
measures, Treynor’s measures and Jensen’s performance measures, these funds are taking more
volatility (systematic and unsystematic risk) and getting more return compare to the other equity
funds. In Sundaram Debt funds the Sundaram Ultra Short Term fund is performing excellent and
taking more risk in achieving of more returns so for the investors this is the right time to invest in
these funds to earn the more returns.
Hence they concentrate on those schemes which are under performing to increase their
performance level by taking few measures that would lessen the risk level of schemes and
increase their returns.
CONCLUSION
A Mutual fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such as
shares, debentures and securities. The income earned through these investments and the capital
appreciation realized is shared by its unit holders in proportion to the number of units owned by
them. Thus a mutual fund is the most suitable investment for the common man as it offers an
opportunity to invest in a diversified professionally managed basket of securities at a relatively
low cost. The investors have to be intuitive while making any investment. While considering the
return of various mutual fund schemes, the risk involved need also to be considered.
We can conclude that Sundaram Ultra short term fund is preferable for the investors who
requires an regular income. And the investor who is ready to take risk to get high return then
Sundaram Tax Saver will be suitable for them.
BIBLIOGRAPHY
 Articles
1. Treynor, jackL. and Mazuy, kayk., ”Can Mutual Funds Outguess the Markets”,
Harvard Brokerage Review,44:131-136,1996
2. Gupta, Maniac C (1974), “The Mutual Fund Industry and its comparative Performance”,
Journal of Financial and Quantitative Analysis, 6:894.
3. Henriksson, Roy L., and Merton, Robert C.,” On Market Timing and Investment
performance II: Statistical Procedures for Evaluating Forecasting Skills” Journal of
Brokerage, 4:513-533, 1981.
4. Lee, C.F., and Rahman,”Market Timing, Selectivity and Mutual Fund Performance: An
Empirical Investigation “, Journal of Brokerage, Vol.63, pp.261-278, 1990.
5. Ippoliti Richard A., “Efficiency with costly Information: A study of Mutual Performance,
1965-1984”, Quarterly Journal of Economics, Vol.IV:1-23, 1989.
6. Sharpe, William F. (1966), “Mutual Fund Performance”, Journal of Brokerage, Volume
39, Supplement, pp. 119-138.
7. Treynor, J. (1965), “How to Rate Management of Investment Funds”, Harvard

Brokerage Review, Volume 43, pp. 63-75.
8. Dr.Rupeetkaur “performance evaluation of debt mutual fund schemes in india” , galaxy

international interdisciplinary research journal issn 2347-6915 giirj, vol.2 (2), february
(2014)
Websites
www.sunness.in
www.zaubacorp.com
www.justdial.com
www.indiamart.com

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EXECUTIVE SUMMARY

INTRODUCTION ABOUT THE STUDY

Finance is a key in part of all round development of a concern. Finance is described as

TITLE OF THE STUDY

“A STUDY ON PERFORMANCE EVALUATION OF MUTUAL FUNDS SCHEMES AT

NEED FOR THE STUDY

OBJECTIVE OF THE STUDY

 To evaluate investment performance of mutual funds in terms of risk and return.

SCOPE OF THE STUDY

Tools and techniques

Agrawal Deepak &Patidar Deepak (2009)the authors in their study “A ComparativeStudy of

LIMITATIONS OF THE STUDY

 The study is limited to performance analysis of mutual funds.

COMPANY AND INDUSTRY PROFILE

SUNNESS CAPITAL INDIA PRIVATE LIMITED (SCIPL) was incorporated in 2009, is an

This table displays the company profile:

Name of the company Sunness capital India Pvt ltd.

Year of establishment 26 August 2009

Company category Company limited by shares

Class of company Private

Evolution of the Indian Brokerage Market

INDIAN STOCK EXCHANGES- An Umbrella Growth

Mutual funds in India

Other developing cities in stock market

Mutual funds are an under tapped market in India

Over the Counter Exchange of India (OTCEI)

National stock exchange (NSE)

Exchanging at NSE was mostly characterized into:

• Wholesale obligation market

1. Trading individuals: Trading depends on screen based robotized instrument which

 National stock trade makes coordinated securities exchange exchanging system

VISION AND MISSION STATEMENT

“Ensuring the Natural Life Style”

PRODUCTS & SERVICES

Excellent online items custom-made for brokers and financial specialists

Flash news and intra-day Research reports

Intra-day and verifiable graphs with specialized devices

Online look into

Expert Sector Analysts with proficient industry encounter.

Automated pay-in office.

Access data – Anytime, Anywhere.

Quarterly Demat proclamations with valuation.

View Demat A/C proclamation on the web.

Competitive exchange charges.

Top quality Research

In house investigate on in excess of 25 items

Highly talented Analysts with proficient industry encounter

Daily, Weekly and Monthly Research Reports

 Strong network in India

Market share is constrained because of numerous contenders

Online promoting is another wellspring of income

Adapting new systems for statistical surveying acquires more incomes

Decentralized basic leadership is useful as neighbourhood advertising needs change

Entering in global market to attract global clients

 Increasing lawsuits due to sheer negligence in preparation of ads

2. Angel Broking Limited:

3. Karvy Stock Broking Limited:

4. MotilalOswal Securities Ltd:

5. VLS FINANCE LTD:

VLS Group is a multi-faceted multi-divisional incorporated monetary administrations bunch

6. BNK SECURITIES PRIVATE LTD:

7 GEOJIT BNP PARIBAS: