Professional Documents
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Mutual Industry Ranjeet
Mutual Industry Ranjeet
DESSERTATION REPORT
“MUTUAL FUND INDUSTRY IN
INDIA”
Submitted In the partial Fulfillment for the
degree of
“Master of Finance Management”.
FACULTY OF COMMERCE
BANARAS HINDU UNIVERSITY
1
ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any
task would be incomplete without the mention of the people who made it possible and
whose constant guidance and encouragement heads all efforts with success.
I extend my gratitude to Prof. V.S. Singh (HEAD & DEAN) Faculty Of Commerce
who gave the valuable time to answer my queries. I am deeply indebted to him, without
his help this report would not have been a possibility.
Also my gratitude to all my colleagues at my institute for their valuable advice and moral
support during the project.
Thanking you,
Ranjeet Kumar Maurya
Roll No: 31
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SYNOPSIS
ABSTRACT
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The project involves in depth study and analysis of different mutuals funds that are
available in the
Market. The project also involves different steps that a retail investor should take into
consideration
before investing into mutual funds . Also we will also see how mutual fund will help to
save taxes..
Limitations of Project
As the time was quite short.It was very difficult to study in debt about the
mutual fund
Industry as it is very vast . Also the datas are collected from secondary sources.
Methodology Followed
The data was collected from different mutal funds site. Comparison. Was
done after carefully
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Seeing the rate of return for the last year performance. After that NAV was compare and
a percentage growth was calculated.The theory of mutual fund was found on various sites
that were dedicated to mutuall funds.
Sources
The data was found on AMFI website. As it is the official website of the AMFI.
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INTRODUCTION
Savings
4 ICICI Bank LOW 8% Deductible
Tax Saving From Taxable
Bonds Income
6
MUTUAL FUNDS
“….Mutual funds are popular among all income levels. With a mutual fund, we get a
diversified basket of stocks managed by a professional……”
Barbara Stanny, author of
Prince Charming Isn’t Coming: How Women Get Smart About Money
“…A mutual fund is a company that brings together money from many people and
invests it in stocks, bonds or other assets. The combined holdings of stocks, bonds or
other assets the fund owns are known as its portfolio. Each investor in the fund owns
shares, which represent a part of these holdings……..”
The U.S. Securities and Exchange
Commission
1. THEORETICAL BACKGROUND
1. INTRODUCTION
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1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund
(Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda
Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set
up its mutual fund in December 1990. At the end of 1993, the mutual fund industry had
assets under management of Rs.47,004 crores.
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setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and
with recent mergers taking place among different private sector funds, the mutual fund
industry has entered its current phase of consolidation and growth. As at the end of
October 31, 2003, there were 31 funds, which manage assets of Rs.126726 crores under
386 schemes.
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Alliance Capital Asset Management (I) Private Limited Private foreign
A mutual fund is an investment vehicle which allows investors with similar (one could
say mutual) investment objectives, to pool their resources and thereby achieve economies
of scale and diversification in their investing. Economies of Scale means lower costs on a
per unit basis by doing things "in bulk" which spreads fixed costs over greater volume. A
mutual fund achieves lower per unit costs for professional money management and for
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transaction charges, than small investors could achieve on their own. This can increase
return to the investor. Diversification is just another way of saying "Don’t put all your
eggs in one basket." A mutual fund allows its investors to a small percentage of many
different investments. So in a well-diversified mutual fund no one particular investment
dominates its performance. Poor results from some investments are likely to be offset by
good results from other investments. Therefore, the unit value of a mutual fund will not
fluctuate as sharply as the value of any one of its investments. This can reduce risk to the
investor.
A mutual fund is the ideal investment vehicle for today’s complex and modern financial
scenario. Markets for equity shares, bonds and other fixed income instruments, real
estate, derivatives and other assets have become mature and information driven. Price
changes in these assets are driven by global events occurring in faraway places. A typical
individual is unlikely to have the knowledge, skills, inclination and time to keep track of
events, understand their implications and act speedily. An individual also finds it difficult
to keep track of ownership of his assets, investments, brokerage dues and bank
transactions etc.
A mutual fund is the answer to all these situations. It appoints professionally qualified
and experienced staff that manages each of these functions on a full time basis. The large
pool of money collected in the fund allows it to hire such staff at a very low cost to each
investor. In effect, the mutual fund vehicle exploits economies of scale in all three areas -
research, investments and transaction processing. While the concept of individuals
coming together to invest money collectively is not new, the mutual fund in its present
form is a 20th century phenomenon. In fact, mutual funds gained popularity only after the
Second World War. Globally, there are thousands of firms offering tens of thousands of
mutual funds with different investment objectives. Today, mutual funds collectively
manage almost as much as or more money as compared to banks.
Despite these advantages mutual funds do not guarantee do not return, nor do they
eliminate risk to investors. The return and risk of a mutual fund depend primarily on the
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type of securities instruments in which it invests, and secondarily on how well it is
managed by the company offering it.
Typically a mutual fund scheme is initiated by a sponsor who recognizes and markets the
fund. It pre specifies the investment objective of the fund and the risks associated with
the costs involved in the process and broad rules for entry into and exit from the fund and
other areas of operation. In India as in most nations the sponsors
need approval from the regulator viz. SEBI. A sponsor then hires an asset management
company to invest the funds according to the investment objective. It also hires another
entity to the custodian of the assets of the funds and perhaps a third one to handle registry
work.
In the Indian context, the sponsors promote the Asset Management Company also, in
which it holds a majority stake. In many cases a sponsor can hold a 100% stake in the
Asset Management Company (AMC). E.g. Birla Global Finance is the sponsor of the
Birla Sun Life Asset Management Company Ltd., which has floated different mutual
funds schemes and also acts as an asset manager for the funds collected under the
schemes.
In nutshell, 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 other securities. The income earned
through these investments and the capital appreciation realized are 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 flow
chart below describes broadly the working of a mutual fund:
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ORGANISATION OF A MUTUAL FUND
There are many entities involved and the diagram below illustrates the
organizational set up of a mutual fund:
Professional Management
Mutual Funds provide the services of experienced and skilled professionals, backed by a
dedicated investment research team that analyses the performance and prospects of
companies and selects suitable investments to achieve the objectives of the scheme.
Diversification
Mutual Funds invest in a number of companies across a broad cross-section of industries
and sectors. This diversification reduces the risk because seldom do all stocks decline at
the same time and in the same proportion. You achieve this diversification through a
Mutual Fund with far less money than you can do on your own.
Convenient Administration
Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such
as bad deliveries, delayed payments and follow up with brokers and companies. Mutual
Funds save your time and make investing easy and convenient.
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Return Potential
Over a medium to long-term, Mutual Funds have the potential to provide a higher return
as they invest in a diversified basket of selected securities.
Low Costs
Mutual Funds are a relatively less expensive way to invest compared to directly investing
in the capital markets because the benefits of scale in brokerage, custodial and other fees
translate into lower costs for investors.
Liquidity
In open-end schemes, the investor gets the money back promptly at net asset value
related prices from the Mutual Fund. In closed-end schemes, the units can be sold on a
stock exchange at the prevailing market price or the investor can avail of the facility of
direct repurchase at NAV related prices by the Mutual Fund.
Transparency
you get regular information on the value of your investment in addition to disclosure on
the specific investments made by your scheme, the proportion invested in each class of
assets and the fund manager's investment strategy and outlook.
Flexibility
Through features such as regular investment plans, regular withdrawal plans and dividend
reinvestment plans, you can systematically invest or withdraw funds according to your
needs and convenience.
Affordability
Investors individually may lack sufficient funds to invest in high-grade stocks. A mutual
fund because of its large corpus allows even a small investor to take the benefit of its
investment strategy.
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Choice of Schemes
Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.
Well Regulated
All Mutual Funds are registered with SEBI and they function within the provisions of
strict regulations designed to protect the interests of investors. The operations of Mutual
Funds are regularly monitored by SEBI.
While the benefits of investing through mutual funds far outweigh the disadvantages, an
investor and his advisor will do well to be aware of a few shortcomings of using the
mutual funds as investment vehicles.
No control over costs: an investor in a mutual fund has no control over the overall cost of
investing. He pays investment management fees as long as he remains with the fund,
albeit in return for the professional management and research. Fees are payable even
while the value of his investments may be declining. a mutual fund investor also pays
fund distribution cost, which he would not incur in direct investing.however,this
shortcoming only means that there is a cost to obtain the benefits of mutual fund services.
No tailor made portfolios: investor who invests on their own can build their own
portfolios of shares and bonds and other securities. Investing through funds means he
delegates this decision to the fund managers. The very high net worth individuals or large
corporate investors may find this to be a constraint in achieving their objectives.
However, most mutual fund managers help investors overcome this constraint by offering
families of funds-----a large number of different schemes---within their own management
company. An investor can choose from different investment plans and construct a
portfolio of his choice.
Managing a portfolio of funds: availability of a large number of funds can actually mean
too much choice for the investor. He may again need advice on how to select a fund to
achieve his objectives, quite similar to the situation when he has to select individual
shares or bonds to invest in.
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Role of Mutual Funds in the Financial Market
The brief review in the preceding section of financial system and structural changes in the
market suggests that Indian Financial institutions have played a dominant role in assets
formation and intermediation, and contributed substantially in macroeconomic
development. In this process of development, Indian mutual funds have emerged as
strong financial intermediaries and are playing a very important role in bringing stability
to the financial system and efficiency to resource allocation. Mutual funds have opened
new vistas to investors and imparted much-needed liquidity to the system.
Mutual funds are the fastest growing institutions in the household saving sector. Growing
complications and risk in the stock market, rising tax rates and increasing inflation have
pushed household towards mutual funds. The active involvement of mutual funds in
promoting economic development can be seen not only in terms of their participation in
the savings market but also in their dominant presence in the money and capital market.
A developed financial market is critical to overall development and mutual funds play an
active role in promoting a healthy capital market. We have also noted that Indian
investors have moved towards more liquid, growth-oriented tradable instrument like
share/ debentures, and units of mutual funds. This shift in asset holding pattern of
investors has been significantly influenced by the ‘equity’ and ‘unit’ culture.
Mutual funds in India have emerged as a critical institutional linkage among various
financial segments like saving, capital market and the corporate sector. They provide
much needed impetus to the money market and stock market, in addition to direct and
indirect support to the corporate sector. Above all, mutual funds have given a new
direction to the flow of personal saving and enabled small and medium investors in
remote, rural and semi urban areas to reap the benefit of stock market investment. Indian
mutual funds are thus playing a very crucial developmental role in allocating resource in
the emerging market economy.
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There are varied ways in which funds can be classified. From the investors perspective
funds are usually classified in terms:
Under each broad classification, there are several types of funds, depending on the basis
of the nature of their portfolio. Even fund has unique risk-profiles that are determined by
its portfolio.
Shares or units of such funds are normally not traded on the stock exchange but are
repurchased by the fund at announced rates. They provide better liquidity even though
not listed as investors can any time approach mutual funds for sale of such units.
Dividend reinvestment option is also available in case of such funds. Since there is
always a possibility of withdrawals, management of such funds becomes more tedious as
managers have to work from crises to crises. Crises may be two fronts:
Unexpected withdrawals require funds to maintain a high level of cash available every
time implying thereby idle cash.
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By virtue of this situation such funds may fail to grab favorable opportunities. Further to
match quick cash payments, funds cannot have matching realization from their portfolio
due to intricacies of the stock market.
Close-ended Funds
Close end funds can be subscribed to, only during the initial public offer. Thereafter the
units of such funds can be bought and sold on the stock exchange on which they are listed
through a broker. Such funds have a stipulated maturity period. The duration of such
funds is generally 2 to 15 years.
The funds units may be traded at the discount or premium to NAV based on the
investors’ perception about the funds future performance and other market factors
affecting the demand for a supply of the funds units. An important point to note here is
that the number of outstanding units of such fund doesn’t vary on account of trading in
the funds units at the stock exchange. From management point of view, managing close
ended schemes is comparatively easy since fund managers can evolve and adopt long
term investment strategies depending on the life of the scheme.
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Load Funds Vs No Load funds
Load Funds
Marketing of new mutual fund scheme involves initial expenses. Charges made to the
investor to cover distribution/sales/marketing expenses are often called “loads”. These
expenses may be recovered from the investors in different ways at different times.
Typically entry and exit loads range from 1% to 2%. Three usual ways in which funds
sales expenses may be recovered from the investor are:
At the time of entry into the fund, by deducting a specific amount from his initial
expenses. The load charges to the investor at the time of his entry into the scheme are
called a “front-end or entry load”.
By charging the fund/scheme with a fixed amount each year, during the stated number of
years. The load amount charged to the scheme over a period of time is called “deferred
load”
At the time of investors exit from the scheme, by deducting a specified amount from the
redemption precedes payable to the investor. The load that the investors pay at the time of
his exit is called a “back-end or exit load”
Some funds may also charge different amounts of load to the investor depending upon
how many years the investors has stayed with the fund, the longer the investor stays with
the fund less the amount of exit load, he is charged. This is called as contingent deferred
sales charge. The schemes NAV would reflect the net amount after the deferred load.
Loads are charged not only by an open-ended fund but even a close-ended fund can
charge a load to cover the initial issue expense.
No-Load Funds
Funds that make no such charges or loads for sales expenses are called as “no load
funds”.
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1.5. TYPES OF FUNDS
Funds are generally distinguished from each other by their investment objectives and
types of securities they invest in. Currently, mutual funds in India are allowed to invest
either in equity or debt or a combination of these two. While moves are on to float funds
that invest in gold or real estate etc, as of date, mutual funds are not permitted to
currently hold physical assets. Thus, a fund can invest in shares or debt instruments of a
gold mining company, but cannot buy gold itself.
By Objective
Here the funds are classified on the basis of the investment objective where objective
reflects the purpose for which the investor is investing his money. By law each mutual
fund must declare an investment objective which tells an investor what the fund
concentrates on and allows the investor to integrate a particular fund with his or her own
needs. The main objective of any investor is to generate returns on his investments but
investors have different needs depending upon which the returns and the portfolio for any
investor varies.
Investors can have one particular objective or can have a mix of various objectives. On
the basis of objective and asset allocation mutual funds can be categorized as follows.
Equity Funds
These are funds which invest in equity shares of companies. Equities, as an asset class,
have historically delivered higher returns compared to debt funds over a long term.
Equity funds, by their very nature, tend to be volatile, that is, in the short term their value
can go up or down. Therefore, they are not meant for those investors who need a regular
and stable stream of easily predictable income.
Broad-based, diversified equity funds vary their investments across companies and
sectors to give a return comparable to the market indices. For instance, if the BSE sensex
appreciates 50 per cent in a one-year, then a broad-based fund would try to give returns
of about 40-60 per cent. Aggressive growth funds take sector bets, that is, they invest
more in particular sectors like infotech and pharma. Here, the fund managers believe that
companies in a particular sector will outperform the general market. Sector funds invest
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their money exclusively in companies belonging to one sector. Here the investor risks his
entire investments on the fortunes of that sector. If the sector does well, he will get above
market returns, but if his bet goes wrong, then the entire capital could get eroded. Hence,
fund managers recommend that sector funds should form only a very small part of your
overall equity investment portfolio.
How they performed - Though the short term out look is volatile in long-term equity
diversified funds have outperformed other categories & stock markets will lesser amount
of risk than stock markets. The average returns of equity diversified funds are 102
PERFORMANCE AS ON APRIL10,2007S
Equity Diversified Asset NAV 1wk 1mt 3mt 6mt 1yr 2yr 3yr
Size (Rs./Uni h h h
(Rs. t)
cr.)
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Follow the index - These are the index-based funds, which move with the likes of Sensex
& Nifty. These fund charges NIL or very low entry/exit loads.
Who should invest - As you have seen in last few months Nifty & Sensex have almost
come down 500points from their tops, it is a good time to invest in Index funds with the
principal of "Investing at the lower levels".
How they performed - Though the short term out look is volatile in long-term Sensex &
Nifty could do well with improving economic conditions. It has been seen that these
Index funds have outperformed the indices making them more attractive.
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PERFORMANCE AS ON APRIL 10, 2007
Equity Tax Saving Asset NAV 1wk 1mt 3mt 6mt 1yr 2yr 3yr
Size (Rs./Uni h h h
(Rs. t)
cr.)
I. Debt Funds -
Banking on Debt Markets - Debt funds invest in the government securities, Corporate
Bonds, Treasury Bills, etc.
Who should invest - The conservative investors like to go for capital safety.
How they performed - From Last 12 months in the declining interest rate scenario debt
funds remained flat. In 3 years debt funds have given average returns of 12%. As equity
market is looking volatile its better to invest part of your money in these funds.
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PRRFORMANCE AS ON APRIL 10 ,2007
Debt - Floating Rate Asset NAV 1wk 1mt 3mt 6mt 1yr 2yr 3yr
Size (Rs./Uni h h h
(Rs. t)
cr.)
III. MIP -
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Monthly Income - These schemes gives you monthly income.
Who should invest - Those who seek monthly income. In the current scenario where debt
market is very volatile it's better to invest in hybrid funds like MIP with suitable time
horizon for capital appreciation.
How they performed - In Last 6-12 months MIP's have given descent returns compare to
debt funds. The average returns of MIP's stands at 15.68%, which looks good, compared
to income funds.
ABN Amro MIP (G) 62.27 12.93 0.5 0.1 -0.4 5.9 9.6 22.4 --
HDFC MIP - LTP 1,161.5
14.79 1.1 1.1 1.2 3.4 7.8 30.8 40.3
(G) 5
HSBC MIP - Savings
69.54 13.16 1.0 1.1 0.1 3.7 6.9 23.5 28.3
Plan (G)
Birla Sun Life MIP
144.35 25.24 0.7 0.9 -0.1 2.8 7.2 20.4 23.5
(G)
Tata Monthly Income
34.01 14.67 0.5 0.6 2.6 3.9 5.0 14.0 18.3
Fund (G)
IV. STP -
Short-term Plans - These schemes provides short-term saving option with more liquidity
than FD's to park your investments.
Who should invest - Those who seeking for income in short-term investments of 6-10
months with more liquidity than Bank fixed deposit.
How they performed - While savings accounts would give you 3.5% per anum, bank FD's
annually return up to 6.5%, Liquid funds would typically give you more than 5% and
short-term plans 6 to 6.5% per anum.
In Last 6-12 months STP's have given descent returns.
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PERFORMANCE AS ON APRIL 10, 2007
Debt - Short Term Asset NAV 1wk 1mt 3mt 6mt 1yr 2yr 3yr
Size (Rs./Uni h h h
(Rs. t)
cr.)
Balance Funds
Balanced funds invest in a combination of debt and equity to balance the risks of
investing in equity. Balanced funds are theoretically designed to hedge the risk of loss on
equity investments by the income generated by debt instruments. The ideal mix of debt to
equity investments in a balanced fund is 50:50. But as funds which invest a majority of
their money in equity are exempt from paying tax on their income up to the year 2002, in
India most funds have a debt to equity ratio of 49:51. A ratio higher than 51 for equity
investments could actually work against the very purpose of balanced schemes.
Balanced fund - Balanced funds gives you the stability with the potential to grow with the
equity help of equity investments. These funds invest in both Equity & Debt markets.
Who should invest - The balanced funds are for those, who want to enjoy the appreciation
effects of equity market but at the same time like to play safe with less volatile debt
market. In this volatile market it is good to invest in balanced funds as they carries less
risk compare to equity funds.
How they performed - In the last 12 months balanced funds have given descent returns
with the up trend in the equity markets. Balanced funds average returns are 60% for 1-
year period.
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PERFOFMANCE AS ON APRIL 10, 2007
Balanced Asset NAV 1wk 1mt 3mt 6mt 1yr 2yr 3yr
Size (Rs./Uni h h h
(Rs. t)
cr.)
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per cent of the amount invested in ELSS can be deducted from your tax liability subject
to a maximum investment of Rs 10,000 per year
Net Asset Value (NAV): Net Asset Value is the market value of the assets of the scheme
minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the
number of units outstanding on the Valuation Date.
Calculation of NAV
The most important part of the calculation is the valuation of the assets owned by the
fund. Once it is calculated, the NAV is simply the net value of assets divided by the
number of units outstanding. The detailed methodology for the calculation of the asset
value is given below.
Asset value is equal to
Sum of market value of shares/debentures + Liquid assets/cash held, if any
+ Dividends/interest accrued
Amount due on unpaid assets
Expenses accrued but not paid
Sale Price: Is the price you pay when you invest in a scheme. Also called Offer Price. It
may include a sales load.
Repurchase Price: Is the price at which a close-ended scheme repurchases its units and
it may include a back-end load. This is also called Bid Price.
Redemption Price: Is the price at which open-ended schemes repurchase their units and
close-ended schemes redeem their units on maturity. Such prices are NAV related.
Sales Load: Is a charge collected by a scheme when it sells the units. Also called,
‘Front-end’ load. Schemes that do not charge a load are called ‘No Load’ schemes.
Repurchase or ‘Back-end’ Load: Is a charge collected by a scheme when it buys back the
units from the unit-holders
EQUITY INVESTING
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“Equities are unique assets that investors feel more comfortable buying at higher prices
and selling at lower prices”
What are the deciding factors which should be considered while buying equities?
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Have consumer switched their preferences for products manufactured by rival
companies to products manufactured by company X?
Has the main shareholders changed its attitude to company X or its philosophy of
management and control.
But keeping a track of all the above factors is not easy for a layman and for this there are
technical annalists who consider the following tools to understand a company’s
performance:
Charts and graphs showing price movements.
Product performance of the company.
Competitive analysis.
Ratio Analysis
Current Ratios
Sales-To-Assets Ratios
Debt Ratios
Return On Equity
Balance sheet and Income statement.
Assets and liabilities
Cash flows
Analysis sheet
Equity share data
Earning Per Share
Dividends Per share
The market price
P/E Ratio
Cash Flow ratios
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1.9. RISK ASSOCITED WITH MUTUAL FUNDS
Mutual funds and securities investment are subject to various risks and there is no
assurance that a scheme objective will be achieved. These risks should be properly
understood by investors so that they can understand how much risky their investment
avenue is. Equity and fixed income bearing securities have different risks associated with
them. Various risks associated with mutual funds can be described as below.
Liquidity or marketable risk - This refers to the ease with which an security can be sold
at near to its valuation yield to maturity. The primary measure of liquidity risk is the
spread between the bid price and the offer price quoted by the dealer. Liquidity risk is
inherent to the Indian Debt market.
Credit risk - Credit risk or default risk refers to the risk that an issuer of fixed income
security may default (i.e, will be unable to make timely principal and interest payments
on the security). Because of those risk corporate debentures are sold at a yield above
those offered on Government securities, which are sovereign obligations and free of
credit risk. Normally the value of fixed income security will fluctuate depending upon the
perceived level of credit risks well as the actual event of default. The greater the credit
risk the greater the yield require for someone to be compensated for increased risk.
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Risk associated to equities
Market risk – The NAV of the scheme investing in equity will fluctuate as the daily
prices of the individual securities in which they invest fluctuate and the units when
redeemed may be worth more or less than the original cost.
Timing the market – It is difficult to identify which is the right time to invest and which
is the right time to take out the money. There may be situations where stocks may not be
rightly timed according to the market leading to loss in the value of scheme.
Liquidity - Investment made in unlisted equities or equity related securities might only
be realizable upon the listing of the securities. Settlement problems could cause the
scheme to miss certain investment opportunities
Dividend Option
Under the dividend plan dividend are usually declared on quarterly or annual basis.
Mutual fund reserves the right to change the frequency of dividend declared.
Growth Option
Under this plan returns accrue to the investor in the form of capital appreciation as
reflected in the NAV. The scheme will not declare the dividend under the Growth plan
and investors who opt for this plan will not receive any income from the scheme. Instead
of income earned on their units will remain invested within the scheme and will be
reflected in the NAV
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3. INVESTMENT MANAGEMENT
After learning the concept of mutual funds and various schemes of mutual funds
available for investment it is required to effectively manage the portfolio of an investor
which depends upon the objective of investor. The most important objective of any
investor is to generate returns. Requirement for return for every investor varies which
depends upon many factors and these factors determine the category to which an investor
belongs. Depending upon the category to which an investors belongs portfolio of any
customer is managed.
Investors can be categorized on the basis of certain factors which can be described as
below.
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4. On the basis of tenure of investment:
Short Term
Medium Term
Long Term
On the basis of the advisory paradigm (deciding factors) mentioned above, various
categories of investor can be made which is deciding factor as to where an investor with a
particular requirement must invest.
For other factors the portfolio of the customer is adjusted accordingly depending upon the
category of the customer. Following are the various profile of investors based on the
advisory paradigm followed by investment avenues where they can park their money:
1. Start early -
The sooner you invest the more time your money will have to grow. If you delay, you
will almost certainly have to invest much more to achieve a similar result.
The difference time can make: an example
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If you started investing Rs. 5,000 a month on your 40th B’Day, in 20 yrs time you would
have put aside Rs. 12 Lakhs. If that investment grew by an average of 7%a year, it would
be worth Rs. 25, 52,994 when you reach 60.
If you started investing ten years earlier, your Rs. 5000 each month would add up to 18
Lakhs over 30 years. Assuming the same average annual growth of 7%, you would have
Rs. 58,825,454 on your 60th Birthday – more than double the amount you would have
received if you’d started ten years later! the bottom line – your investments gain most
from compounding interests when you have time on your side.
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5. Think carefully about how long you will be investing for -
Only look at the stock market if you are prepared to put your money away for five or ten
years, or perhaps even longer. If you are likely to need your money any sooner, keep it in
a lower-risk investment so there is less chance of a fall in value just before you make a
withdrawal.
7. Invest regularly-
Investing regularly can be a great way to build up a significant lump sum. You will also
benefit from what is known as rupee cost averaging. This means that, if you are investing
in a mutual fund, over the years you will pay the average price for units. If the market
goes up, the units you already own will increase in value. If it goes down, you will buy
more units.
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9. Remember that time not timing is the key to successful investing-
When you are planning an investment, it can be tempting to wait for the market to reach a
low point. But how will you know when this happens? You run the risk of missing out on
the significant rises that often occur in the early trends of a upward trend.
38
automatically buy more units when prices are low and fewer units when prices are high,
resulting in lower "per unit acquiring cost" as a result of averaging.
Understanding SIP – How does cost averaging benefits you? (Taking an example of few
schemes of Prudential ICICI mutual fund)
Many investors think that they should invest only when an opportunity to invest – like an
IPO (Initial Public Offering) – is available. However, \hen doing this, one runs the risk of
mistiming the market. For example, many times investors are attracted by the price in the
market only to subsequently find out that they had invested at a peak. Sometimes
investors buy when they think the market has bottomed out only to find the prices falling
further. SIP through cost averaging helps you avoid the risk of mistiming by spreading
your risk.
To illustrate this point, let us look at the contrast in returns that a hypothetical investor
would have gained by using an SIP in some schemes of Prudential ICICI versus doing an
one time investment in the same fund at IPO stage.
40 36.55
35
28.87
30
20 ONE TIME
13.6 13.58 INVESTMENT AT
15 IPO
10
MONTHLY SIP
SINCE IPO
5
-5
-8.3
-10
POWER TECHNOLOGY CHILD CARE - Gift BALANCED
Let us compare SIP’s of top Players and the kind of returns they give in one year, also
compare the returns with Recurring deposit and fixed deposit returns:
SCHEME TOTAL VALUE OF RECURRING FIXED
AMOUNT INVESTMENT DEPOSIT @ DEPOSIT @
39
INVESTD AFTER 1 5% 5.5%
(@ 1,000 YEAR
PM)
F.T. BLUECHIP 12,000 14,791 12,328 12,660
F.T. PRIMA 12,000 16,913 12,328 12,660
FUND
BIRLA 12,000 15,487 12,328 12,660
DIVIDEND
YIELD PLUS
DSPML 12,000 20,724 12,328 12,660
OPPORTUNITIES
HDFC CAPITAL 12,000 15,240 12,328 12,660
BUILDER
HDFC EQUITY 12,000 15,240 12,328 12,660
KOTAK 30 12,000 16,440 12,328 12,660
PRU ICICI OWER 12,000 14,689 12,328 12,660
RELIANCE 12,000 17,040 12,328 12,660
GROWTH
SUNDRAM 12,000 16,320 12,328 12,660
MIDCAP
TATA PURE 12,000 15,480 12,328 12,660
EQUITY
HDFC LTA 12,000 18,960 12,328 12,660
F.T. TAX 12,000 17,520 12,328 12,660
SHIELD
40
III. Systematic Withdrawal Plan
Systematic Withdrawal Plan (SWP) lets you automatically redeem a prearranged amount
of your mutual fund holdings each month. SWPs are an ideal way to supplement your
monthly cash flow, meet minimum withdrawal requirements, or move assets between the
funds.
SWP is a no-charge service. When you set up your SWP, cash proceeds from each
redemption (minimum balance maintained @ 25% of the holding at any given point of
time) are given to you in the form of post-dated cheques (six monthly cheques at par,
which enables you to get the funds lodged).
Mutual Fund industry today, with about 34 players and more than five hundred schemes,
is one of the most preferred investment avenues in India. However, with a plethora of
schemes to choose from, the retail investor faces problems in selecting funds. Factors
such as investment strategy and management style are qualitative, but the funds record is
an important indicator too. Though past performance alone can not be indicative of future
performance, it is, frankly, the only quantitative way to judge how good a fund is at
present. Therefore, there is a need to correctly assess the past performance of different
mutual funds.
Worldwide, good mutual fund companies over are known by their AMCs and this fame is
directly linked to their superior stock selection skills. For mutual funds to grow, AMCs
must be held accountable for their selection of stocks. In other words, there must be some
performance indicator that will reveal the quality of stock selection of various AMCs.
Return alone should not be considered as the basis of measurement of the performance of
a mutual fund scheme, it should also include the risk taken by the fund manager because
different funds will have different
levels of risk attached to them. Risk associated with a fund, in a general, can be defined
as variability or fluctuations in the returns generated by it. The higher the fluctuations in
the returns of a fund during a given period, higher will be the risk associated with it.
These fluctuations in the returns generated by a fund are resultant of two guiding forces
41
. First, general market fluctuations, which affect all the securities, present in the market,
called market risk or systematic risk and second, fluctuations due to specific securities
present in the portfolio of the fund, called unsystematic risk. The Total Risk of a given
fund is sum of these two and is measured in terms of standard deviation of returns of the
fund. Systematic risk, on the other hand, is measured in terms of Beta, which represents
fluctuations in the NAV of the fund vis-à-vis market. The more responsive the NAV of a
mutual fund is to the changes in the market; higher will be its beta. Beta is calculated by
relating the returns on a mutual fund with the returns in the market. While unsystematic
risk can be diversified through investments in a number of instruments, systematic risk
can not. By using the risk return relationship, we try to assess the competitive strength of
the mutual funds vis-à-vis one another in a better way.
When considering a fund's volatility, an investor may find it difficult to decide which
fund will provide the optimal risk-reward combination. Many websites provide various
volatility measures for mutual funds free of charge; however, it can be hard to know not
only what the figures mean but also how to analyze them. Furthermore, the relationship
between these figures is not always obvious. Read on to learn about the four most
common volatility measures and how they're applied in the type of risk analysis that is
based on modern portfolio theory. Optimal Portfolio Theory and Mutual Funds
One examination of the relationship between portfolio returns and risk is the efficient
frontier, a curve that is a part of the modern portfolio theory. The curve forms from a
graph plotting return and risk indicated by volatility, which is represented by standard
deviation. According to the modern portfolio theory, funds lying on the curve are
yielding the maximum return possible given the amount of volatility.
42
Notice that as standard deviation increases, so does the return. In the above chart, once
expected returns of a portfolio reach a certain level, an investor must take on a large
amount of volatility for a small increase in return. Obviously portfolios that have a
risk/return relationship plotted far below the curve are not optimal as the investor is
taking on a large amount of instability for a small return. To determine if the proposed
fund has an optimal return for the amount of volatility acquired, an investor needs to do
an analysis of the fund's standard deviation.
Note that the modern portfolio theory and volatility are not the only means investors use
to determine and analyze risk, which may be caused by many different factors in the
market
43
The standard deviation essentially reports a fund's volatility, which indicates the tendency
of the returns to rise or fall drastically in a short period of time. A security that is volatile
is also considered higher risk because its performance may change quickly in either
direction at any moment. The standard deviation of a fund measures this risk by
measuring the degree to which the fund fluctuates in relation to its mean return, the
average return of a fund over a period of time.
A fund that has a consistent four-year return of 3%, for example, would have a mean, or
average, of 3%. The standard deviation for this fund would then be zero because the
fund's return in any given year does not differ from its four-year mean of 3%. On the
other hand, a fund that in each of the last four years returned -5%, 17%, 2% and 30% will
have a mean return of 11%. The fund will also exhibit a high standard deviation because
each year the return of the fund differs from the mean return. This fund is therefore more
risky because it fluctuates widely between negative and positive returns within a short
period.
A note to remember is that, because volatility is only one indicator of the risk affecting a
security, a stable past performance of a fund is not necessarily a guarantee of future
stability. Since unforeseen market factors can influence volatility, a fund that this year
has a standard deviation close or equal to zero may behave differently in the following
year.
To determine how well a fund is maximizing the return received for its volatility, you can
compare the fund to another with a similar investment strategy and similar returns. The
fund with the lower standard deviation would be more optimal because it is maximizing
the return received for the amount of risk acquired. Consider the following graph:
44
With the S&P 500 Fund B, the investor would be acquiring a larger amount of volatility
risk than necessary to achieve the same returns as Fund A. Fund A would provide the
investor with the optimal risk/return relationship.
#2: Beta
while standard deviation determines the volatility of a fund according to the disparity of
its returns over a period of time, beta, another useful statistical measure, determines the
volatility, or risk, of a fund in comparison to that of its index or benchmark. A fund with
a beta very close to 1 means the fund's performance closely matches the index or
benchmark. A beta greater than 1 indicates greater volatility than the overall market, and
a beta less than 1 indicates less volatility than the benchmark.
If, for example, a fund has a beta of 1.05 in relation to the S&P 500, the fund has been
moving 5% more than the index. Therefore, if the S&P 500 increased 15%, the fund
would be expected to increase 15.75%. On the other hand, a fund with a beta of 2.4
would be expected to move 2.4 times more than its corresponding index. So if the S&P
500 moved 10%, the fund would be expected to rise 24%, and, if the S&P 500 declined
10%, the fund would be expected to lose 24%.
Investors expecting the market to be bullish may choose funds exhibiting high betas,
which increase investors' chances of beating the market. If an investor expects the market
to be bearish in the near future, the funds that have betas less than 1 are a good choice
45
because they would be expected to decline less in value than the index. For example, if a
fund had a beta of 0.5 and the S&P 500 declined 6%, the fund would be expected to
decline only 3%.
Be aware of the fact that beta by itself is limited and can be skewed due to factors other
than the market risk affecting the fund's volatility.
#3: R-Squared
The R-squared of a fund advises investors if the beta of a mutual fund is measured
against an appropriate benchmark. Measuring the correlation of a fund's movements to
that of an index, R-squared describes the level of association between the fund's volatility
and market risk, or more specifically, the degree to which a fund's volatility is a result of
the day-to-day fluctuations experienced by the overall market.
R-squared values range between 0 and 100, where 0 represents the least correlation and
100 represents full correlation. If a fund's beta has an R-squared value that is close to
100, the beta of the fund should be trusted. On the other hand, an R-squared value that is
close to 0 indicates that the beta is not particularly useful because the fund is being
compared against an inappropriate benchmark.
If, for example, a bond fund was judged against the S&P 500, the R-squared value would
be very low. A bond index such as the Lehman Brothers Aggregate Bond Index would be
a much more appropriate benchmark for a bond fund, so the resulting R-squared value
would be higher. Obviously the risks apparent in the stock market are different than the
risks associated with the bond market. Therefore, if the beta for a bond were calculated
using a stock index, the beta would not be trustworthy.
An inappropriate benchmark will skew more than just beta. Alpha is calculated using
beta, so if the R-squared value of a fund is low, it is also wise not to trust the figure given
for alpha. We'll go through an example in the next section.
46
#4: Alpha
Up to this point, we have learned how to examine figures that measure risk posed by
volatility, but how do we measure the extra return rewarded to you for taking on risk
posed by factors other than market volatility? Enter alpha, which measures how much if
any of this extra risk helped the fund outperform its corresponding benchmark. Using
beta, alpha's computation compares the fund's performance to that of the benchmark's
risk-adjusted returns and establishes if the fund's returns outperformed the market's, given
the same amount of risk.
For example, if a fund has an alpha of 1, it means that the fund outperformed the
benchmark by 1%. Negative alphas are bad in that they indicate that the fund
underperformed for the amount of extra, fund-specific risk that the fund's investors
undertook.
47
8
6
Standard Deviation
Sharpe Ratio
5
Beta
4
R Square
Alfa
3
Comprehensive Ranking
2
0
Reliance Reliance Franklin Franklin HDFC HDFC top Pru ICICI Pru ICICI
growth fund vision fund India Prima India Blue growth fund 200 growthv power fund
Fund chip Fund fund
This explanation of these four statistical measures provides you with the basic knowledge
on using them to apply the premise of the optimal portfolio theory, which uses volatility
to establish risk and states a guideline for determining how much of a fund's volatility
carries a higher potential for return. As you may have noticed, these figures may be
difficult and complicated to understand, but if you do use them, it is important you know
what they mean. Do keep in mind that these calculations only work within one type of
risk analysis. When you are deciding on buying mutual funds it is important that you be
aware of factors other than volatility that affect and indicate the risk posed by mutual
funds.
49
The Sharpe Measure
In this model, performance of a fund is evaluated on the basis of Sharpe Ratio, which is a
ratio of returns generated by the fund over and above risk free rate of return and the total
risk associated with it. According to Sharpe, it is the total risk of the fund that the
investors are concerned about. So, the model evaluates funds on the basis of reward per
unit of total risk. Symbolically, it can be written as:
Sharpe Index (Si) = (Ri - Rf)/Si where,
Si is standard deviation of the fund.
While a high and positive Sharpe Ratio shows a superior risk-adjusted performance of a
fund, a low and negative Sharpe Ratio is an indication of unfavorable performance.
On the other hand, the systematic risk is the relevant measure of risk when we are
evaluating less than fully diversified portfolios or individual stocks. For a well-diversified
portfolio the total risk is equal to systematic risk. Rankings based on total risk (Sharpe
measure) and systematic risk (Treynor measure) should be identical for a well-diversified
portfolio, as the total risk is reduced to systematic risk. Therefore, a poorly diversified
fund that ranks higher on Treynor measure, compared with another fund that is highly
diversified, will rank lower on Sharpe Measure.
Jenson Model
Jenson's model proposes another risk adjusted performance measure. This measure was
developed by Michael Jenson and is sometimes referred to as the Differential Return
Method. This measure involves evaluation of the returns that the fund has generated vs.
the returns actually expected out of the fund given the level of its systematic risk. The
surplus between the two returns is called Alpha, which measures the performance of a
fund compared with the actual returns over the period. Required return of a fund at a
given level of risk (Bi) can be calculated as:
Ri = Rf + Bi (Rm - Rf) where,
50
Rm is average market return during the given period.
After calculating it, alpha can be obtained by subtracting required return from the actual
return of the fund.
Higher alpha represents superior performance of the fund and vice versa. Limitation of
this model is that it considers only systematic risk not the entire risk associated with the
fund and an ordinary investor can not mitigate unsystematic risk, as his knowledge of
market is primitive.
Fama Model
The Eugene Fama model is an extension of Jenson model. This model compares the
performance, measured in terms of returns, of a fund with the required return
commensurate with the total risk associated with it. The difference between these two is
taken as a measure of the performance of the fund and is called net selectivity.
The net selectivity represents the stock selection skill of the fund manager, as it is the
excess return over and above the return required to compensate for the total risk taken by
the fund manager. Higher value of which indicates that fund manager has earned returns
well above the return commensurate with the level of risk taken by him.
Required return can be calculated as:
Ri = Rf + Si/Sm*(Rm - Rf) where,
Sm is standard deviation of market returns.
The net selectivity is then calculated by subtracting this required return from the actual
return of the fund.
Dividend paid by mutual funds is fully tax-exempt at the hands of the investor, although,
debt funds have to pay a 12.81 per cent dividend distribution tax. On redemption of any
units held for more than a year, your realization will attract long-term capital gains tax of
20 per cent plus surcharge after indexing for inflation, or at a flat rate of 10 per cent. If
redeemed before a year it will be termed as short term capital gain and taxed along with
your other income. However, you can save tax by investing in Equity-Linked Savings
Scheme (ELSS) under Section 88 of the Income Tax Act, 1961, according to which 20
per cent of the amount invested
in ELSS could be deducted from your tax liability subject to a maximum investment of
Rs 10,000 per year but now under section 80C the complete 100000 can be invested in
51
ELSS schemes and which can be deducted from your gross salary thereby leaving your
taxable salary thinner by Rs.100000.
Income tax
Income received ,otherwise than on transfer(subject to the exemption of long term capital
gains provided for in section 10(38)of the4 act, discussed elsewhere in this statement),in
respect of units of a mutual fund would be exempt from tax under section 10(35) of the
act.
52
1,2004 ,where such transaction of sale is chargeable to STT under chapter VII of the
finance (no.2 ) act,2004 ,shall be exempt from tax.
Other benefits
Investments in units of the mutual fund will rank as an eligible form of investment under
section 11(5)of the act read with rule 17C of the income tax rules,1962, for religious and
charitable trusts.
Wealth tax
Units of the mutual fund are ot treated as assets as defined under; section 2(ea) of the
wealth tax act,1957 and therefore would not be liable to wealth tax.
Gift tax
The gift tax act, 1958 has ceased to apply to gifts made on or after October 1, 1998 .gifts
of units of the mutual fund would therefore be exempt from gift tax.
53
It may also be noted that that SEBI has issued a circular that with effect from nov
1,2001 ,only those agents/distributors who have passed the association of mutual funds in
India(AMFI) certification programme
can be empanelled as agents/distributors .in case of firms/companies, the requirement of
certification is applicable to persons engaged in sales and marketing. The existing
agents /distributors were required to pass the certification programme by Sep 30, 2003,
further agents/distributors would be entitled to sell units of mutual funds unless the
intermediary is registered with AMF
Moses gave to his followers 10 commandments that were to be followed till eternity. The
world of investments too has several ground rules meant for investors who are novices in
their own right and wish to enter the myriad world of investments. These come in handy
for there is every possibility of losing what one has if due care is not taken.
1. Assess yourself: Self-assessment of one’s needs; expectations and risk profile is
of prime importance failing which; one will make more mistakes in putting
money in right places than otherwise. One should identify the degree of risk
bearing capacity one has and also clearly state the expectations from the
investments. Irrational expectations will only bring pain.
3. Don't rush in picking funds, think first: One first has to decide what he wants
the money for and it is this investment goal that should be the guiding light for all
investments done. It is thus important to know the risks associated with the fund
and align it with the quantum of risk one is willing to take. One should take a look
at the portfolio of the funds for the purpose. Excessive exposure to any specific
54
sector should be avoided, as it will only add to the risk of the entire portfolio.
Mutual funds invest with a certain ideology such as the "Value Principle" or
"Growth Philosophy". Both have their share of critics but both philosophies work
for investors of different kinds. Identifying the proposed investment philosophy of
the fund will give an insight into the kind of risks that it shall be taking in future.
4. Invest. Don’t speculate: A common investor is limited in the degree of risk that
he is willing to take. It is thus of key importance that there is thought given to the
process of investment and to the time horizon of the intended investment. One
should abstain from speculating which in other words would mean getting out of
one fund and investing in another with the intention of making quick money. One
would do well to remember that nobody can perfectly time the market so staying
invested is the best option unless there are compelling reasons to exit.
5. Don’t put all the eggs in one basket: This old age adage is of utmost
importance. No matter what the risk profile of a person is, it is always advisable
to diversify the risks associated. So putting one’s money in different asset classes
is generally the best option as it averages the risks in each category.
Thus, even investors of equity should be judicious and invest some portion of the
investment in debt. Diversification even in any particular asset class (such as
equity, debt) is good. Not all fund managers have the same acumen of fund
management and with identification of the best man being a tough task; it is good
to place money in the hands of several fund managers. This might reduce the
maximum return possible, but will also reduce the risks
8. Find the right funds: Finding funds that do not charge much fees is of
importance, as the fee charged ultimately goes from the pocket of the investor.
This is even more important for debt funds as the returns from these funds are not
much. Funds that charge more will reduce the yield to the investor. Finding the
right funds is important and one should also use these funds for tax efficiency.
Investors of equity should keep in mind that all dividends are currently tax-free in
India and so their tax liabilities can be reduced if the dividend payout option is
used. Investors of debt will be charged a tax on dividend distribution and so can
easily avoid the payout options.
9. Keep track of your investments: Finding the right fund is important but even
more important is to keep track of the way they are performing in the market. If
the market is beginning to enter a bearish phase, then investors of equity too will
benefit by switching to debt funds as the losses can be minimized. One can
always switch back to equity if the equity market starts to show some buoyancy.
10. Know when to sell your mutual funds: Knowing when to exit a fund too
is of utmost importance. One should book profits immediately when enough has
been earned i.e. the initial expectation from
56
the fund has been met with. Other factors like non-performance, hike in fee
charged and change in any basic attribute of the fund etc. are some of the reasons
for to exit. For more on it, read "When to say goodbye to your mutual fund."
Investments in mutual funds too are not risk-free and so investments warrant
some caution and careful attention of the investor.
After learning the concept of mutual funds and various schemes of mutual funds
available for investment it is required to effectively manage the portfolio of an
investor which depends upon the objective of investor. The most important
objective of any investor is to generate returns. Requirement for return for every
investor varies which depends upon many factors and these factors determine the
category to which an investor belongs. Depending upon the category to which an
investors belongs portfolio of any customer is managed.
Risk-Return analysis
The charts on the following pages give you a snapshot of how the mutual funds have
performed on the risk-return parameters in the past. We have used the bubble analysis
method to measure their performances on three parameters, viz risk, return and
fund size. The risk is measured by standard deviation, which measures the average
deviation of the returns generated by a scheme from its mean returns. We have tried to
explain the same with the help of a diagram, which is divided into four quadrants,
with each quadrant containing funds of a particular risk-return profile. The size
of the bubbl e indicates the size of the fund.
The funds in the high-risk high return s quadrant follow a very aggressive approach and
deliver high absolute returns compared to the peers albeit at a higher risk.
The funds in the low-risk high return s quadrant outperform the peer group on the risk-
adjusted returns basis as they deliver higher returns compared to the peers without
exposing the portfolio to very high risk.
The funds in the low-risk low returns quadrant are not very aggressive and provide
lower absolute returns, taking lower risks.
The funds in the high-risk low return s quadrant underperform the peers on the
risk adjusted returns basis as they adopt a high-risk strategy but the returns fail to
compensate the risk taken by the fund.
For aggressive, conservative and tax planning funds, risk is measured in terms of two
57
years' volatility while returns are measured as two years' average rolling returns as on
December 26 Feb 2006. For thematic and balanced funds, risk is measured in terms of
one year's volatility while returns are measured as one year's average rolling returns as
26 Feb 2006..
By December 2004, Indian mutual fund industry reached Rs 1,50,537 crore. It is estimated
that by 2010 March-end, the total assets of all scheduled commercial banks should be Rs
40,90,000 crore.
The annual composite rate of growth is expected 13.4% during the rest of the decade. In the
last 5 years we have seen annual growth rate of 9%. According to the current growth rate, by
year 2010, mutual fund assets will be double.
• Number of foreign AMC's are in the que to enter the Indian markets like Fidelity
Investments, US based, with over US$1trillion assets under management worldwide.
• Our saving rate is over 23%, highest in the world. Only channelizing these savings in
58
mutual funds sector is required.
• We have approximately 29 mutual funds which is much less than US having more than
800. There is a big scope for expansion.
• 'B' and 'C' class cities are growing rapidly. Today most of the mutual funds are
concentrating on the 'A' class cities. Soon they will find scope in the growing cities.
• Mutual fund can penetrate rurals like the Indian insurance industry with simple and
limited products.
59
Conclusion:--
The mutual fund industry is a lot like the film star of the finance business.
Though it is perhaps the smallest segment of the industry, it is also the most
glamorous – in that it is a young industry where there are changes in the rules of the game
everyday, and there are constant shifts and upheavals.
The mutual fund is structured around a fairly simple concept, the mitigation
of risk through the spreading of investments across multiple entities, which is achieved
by the pooling of a number of small investments into a large bucket.
Yet it has been the subject of perhaps the most elaborate and prolonged
regulatory effort in the history of the country.
60
Bibliography
www.amfiindia.com
www.crisil.com
www.business_standard.com/special/fund/2003/trend/html
www.indiainfoline.com
www.india_business_informal/mutualfund- perfomance.html
www.indiabudget.nic.in/es2001-2002
www.valuereasearch.com
www.equityresearch.com
www.utibank.com
Journals
Karvy finapolis
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