“PERFORMANCE ANALYSIS OF MUTUAL FUND”

In partial fulfilment of the Dissertation

In Semester - IV of the Master of Business Administration

Prepared by

KUMAR PRAKASH

Registration No: 18010121044

Under the Guidance of: Dr. Sivasankari S

In partial fulfillment of the Dissertation in Semester - IV of the Master of

Business Administration (Batch of 2018-2020)

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 Master of Business Administration

Declaration

This is to declare that the report entitled “PERFORMANCE ANALYSIS OF MUTUAL FUND” is
prepared for the partial fulfilment of the Dissertation course in Semester IV of the Master of Business
Administration (Batch of 2018-2020) by me under the guidance of Prof. Dr. Sivasankari S

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

Signature of the Student: kumar prakash

Name of the Student (in Capital Letters): KUMAR PRAKASH

Registration No: 18010121044

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 Master of Business Administration

Certificate

This is to certify that Mr. KUMAR PRAKASH Regn. No. 18010121044 has completed the
dissertation titled “PERFORMANCE ANALYSIS OF MUTUAL FUND” under my
guidance of for the partial fulfillment of the Dissertation course in Semester IV of the Master
of Business Administration.

Signature of Faculty Guide:

Name of the Faculty Guide: Prof. Dr. Sivasankari S

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 ABSTRACT

In growing country like India, capital market plays an important role to stabilize the Economic
growth, strengthen industrial performance, and provide various investment avenues to the
investors to help the various industries and to ensure the profitable return. Among various financial
products , mutual fund ensures the minimum risks and maximum return to the investors, its having
own policies , terms conditions that are different from other products , so the market volatilization
will not make more effect in return.. This report is based on the descriptive study of the risk and
return analysis of mutual fund (In reference with prabhudas lilladher Fund).Mutual fund is a pool
saving the amount of large number of investors who share the common financial goal .It helps me
to analyze how much risk and return consist in different mutual fund of prabhudas lilladher like
(Large cap fund, Select Mid cap fund etc.).The analysis of risk and return is done by technical ratio
like standard deviation, beta ratio, r-square, absolute return, average annualized return etc. The
main objective of the study of report is to give the investor a basic idea of investing in mutual fund
and encourage them to invest in those areas which can maximize their return according to their
financial goal.

As the Indian Capital Market has been increasing tremendously now a days. With the reforms of
financial sector ,industrial policy ,financial sector ,the economy has opened up and many
development has been taking up in Indian Capital Market .For helping the small investors Mutual
Fund Industry has occupied an important place. This study helps me to understand how the
company diversified their risk by investing the amount in different sectors to maximize their return
and risk involved in different sectors.

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 TABLE OF CONTENTS

CONTENTS PAGE NO.

CHAPTER -1
Introduction of Mutual Fund 8-10
History of Mutual Fund 11-12
Objective of the Report 13
Methodology of Report 13
Schedule of Report 13
Limitations of Report 13
CHAPTER-2
Economic Analysis 14-17
Industrial Analysis 18-22
Learning During Internship Program 23
Specimen of calling clients 24
CHAPTER-3
Organization Overview 25-29
SWOT Analysis 30-31
CHAPTER -4
Advantage of Mutual Fund 33-34
Disadvantage of Mutual Fund 34
Types of Mutual Fund 35
Schemes Of Mutual Fund 36
Steps to Choose Right Mutual Fund 37
Rights of Unit Holder 38-39
Tax Benefits of Mutual Fund 40
SEBI Regulations Of Mutual Fund 41-42
Structure Of Mutual Fund 43-44
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Top Layers Of Mutual Fund 45
Valuation Tool Used in Mutual Fund 46
Role of SIP in Mutual Fund 47
CHAPTER-5
Overview of Risk and Return Analysis of Mutual 48
Fund
Types of Mutual Fund Risk 49
Risk and Return Analysis of Mutual Fund Schemes 50-51
CHAPTER-5
Comparison of HDFC Balance Fund with Nifty 52-53
Graphical analysis return of HDFC with nifty 54
benchmark
Comparison of TATA Balance Fund with Nifty 55-56
Graphical analysis return of TATA with nifty 57
benchmark
Comparison of SBI Balance Fund with Nifty 58-59
Graphical analysis return of SBI with nifty 60
benchmark
Comparison of UTI Balance Fund with Nifty 61-62
Graphical analysis of UTI with nifty benchmark 63
Comparison of KOTAK Balance Fund with Nifty 64-645
Graphical analysis of kotak with nifty 66
Risk Analysis of Mutual Fund 65-67
Risk Analysis Of Mutual Fund Return 68-71
Conclusion 72-74
Recommendation 75
References 76

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INTRODUCTION OF MUTUAL FUND

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 CHAPTER 1

INTRODUCTION OF MUTUAL FUND

1.1 OVERVIEW OF MUTUAL FUND

The Mutual Fund industry started in India in 1963 with the formation of unit trust of India, at the
initiative of the government of India and reserve Bank. Though the growth was slow, but it
accelerated from the year1987 when non –UTI players entered the industry. Indian mutual fund
industry had seen a dramatic improvement, both qualities wise as well as quantity wise.

Mutual Fund is an investment vehicle that is made up of a pool of funds collected from many
investors for the purpose of investing in securities such as stocks ,bonds , money market
instruments and other assets. The investors in mutual Fund have common financial goal and
their money is invested in different assets class according to the fund investment objective
The investor in the mutual fund can invest the amount in funds by SIP or Lump sum amount
according to their investment objective.

Mutual funds are pooled investment which actively managed either by professional fund
managers . The funds are generally well diversified to offset potential losses. Mutual Fund gives
the option to the investors who generally lack the time or knowledge to make investment decision

The Asset Management Companies conduct the research analysis on market conditions and
market trends on stock and bond prices before investing the investor amount into stocks 1and
bonds. These research analysis help the fund manager to speculate the market in right condition.

The investors who invest their amount in the Mutual Fund of any Investment Company receive an
Equity Position in that Particular Mutual Fund. When the Investors sell the shares of the Mutual
Fund they receive the return according to the market condition.

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 PROCEDURE OF MUTUAL FUNDS

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 HISTORY OF MUTUAL FUNDS

1.2 HISTORY
The Mutual Fund Industry in India has started in the year 1963 with the formation of Unit Trust
of India, at the initiative of the Government of India and Reserve Bank of India. The history of
Mutual Fund has broadly divided into four sectors it was established in the year 1963 by an Act of
Parliament .It was set up by It was set up by the Reserve Bank Of India and it functioned under
the Regulatory and administrative control Of the Reserve Bank Of India. The First Scheme of UTI
was launched in the year 1964.

Second Phase 1987-1993 (Public Sector Banks)

In the Year 1987 to 1993 there was an entry of Public Sector Mutual Fund which was set up by
the public sector banks and Life Insurance Corporation and General Insurance Corporation .SBI
Mutual Fund was the first non UTI Mutual Fund which was established in the year 1987 .The
public Sector bank which come under the Mutual Fund in the year (1987-1993) are Punjab Bank
Mutual Fund, Indian Bank Mutual Fund, Bank Of Baroda Mutual Fund etc.

Third Phase 1993-2003 (Entry of Private Sector)

In the Year 1993 to 2003 there was an entry of Private Sector Funds in the Mutual Fund Industry.
Also in the Year 1993 the first Mutual Fund Regulations came into being under which all the
Mutual Funds except UTI were to be registered and governed. The Kothari Pioneer which was
now merged with Franklin Templeton was the first private sector mutual fund in India which was
registered in the year July 1993.

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Fourth Phase (February 2003)

In the Year 2003 the Unit Trust of India Act 1963 was divided into two separate entities. First is
Specified Undertaking of the Unit Trust of India with the Asset Management of Rs.29, 835 crores
as at the end of January 2003.

The Specified Undertaking Unit Trust of India functioned under administrator and under the rules
framed by the government of India.

The Second is the UTI Mutual Fund sponsored by the SBI, PNB, BOB and LIC. It is registered
under SEBI and functioned under the Mutual fund Regulations. UTI Mutual Fund handling the
Asset Management more than the 76,000 crore.

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1.3 OBJECTIVE OF THE REPORT

1) To understand about the mode of investment in mutual fund.

2) To understand about the risk and return analysis of different mutual fund.

3) How to select better schemes from the available types of mutual fund.

4) Performance and analysis.

1.4 Methodology
1) For research methodology I have used the money control website, nseindia.com, mutual funds
websites.

2) To study the risk appetite and investor preference while selecting between debt and equity.

1.5 Limitation of the Report

1) This study will cover the analysis of the data of open ended of balance fund..
2) This study includes the NAV of all five balance funds and benchmark of nifty nav value.
3) The data collection here in this project is strictly related to the secondary sources.
4) Source of information for this project is only secondary data. The data about the Mutual Fund,
the government policies with respect to the industry, and the Information about the industry is all
gathered from secondary sources, available On the websites, annual reports, and business
magazines.

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ECONOMY INDUSTRY ANALYSIS OF
MUTUAL FUND

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2.1 ECONOMIC ANALYSIS

The Economy of India is considered as the largest economy in the world by nominal GDP .The
annual growth rate of Indian Economy have increased from 7.5% in 2015 -2016 as compared to
the 7.2% in the fiscal year in 2014-2015. The agriculture Sector is the largest Sector in India.
Nearly about 70% of the people are in agriculture sector.

Indian Economic would grow by 7.7%-8.0% in the year 2016-2017 fiscal years starting on April
1, 2015 from 7.5% in the year (2015-2016). According to the Statistics the GDP of India is $2.40
trillion in April 2016. The GDP of Indian Economy by Sector is:-

1) Agriculture : 16.1%
2) Industry: 29.5%
3) Services 54.4%

The Indian money market is classified into the organized sector that comprising private, public
and foreign owned commercial banks and cooperative banks which are known as Scheduled Banks
.The unorganized Sector includes individual or family owned indigenous bankers or money lender.
The government owned public sector bank hold 75% of the total bank industry with private and
foreign banks holdings 18.2% and 6.5% respectively. After the NAFC in 2008-09 India real GDP
growth rebounded during 2009-2011 but this rebound was short –lived. This declaration in growth
was accompanied by a number of disconcerting macro-economic development since 2008-2009.

The CAD (Current Account Deficit) which was relatively moderate and average less than 1 percent
of the GDP during 1992-2008 widened significantly to just under 5% in 2012-2013 (but has since
more than halved to 2.3 % in the first three quarters of 2013-14 and in 2015 (1.2 percent GDP)in
the June 2015 quarter in response to policy actions). Consumer Inflation has remained persistently
high in the post crisis period.

The emerging Sectors of the India Economy are Food Processing, Manufacturing Sector, Pharma
Sector, Organized Retailing, Education and Training, Tourism and Entertainment, Insurance,
Banking, knowledge Process Outsourcing etc. These are the sectors which are growing very fastly

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and likely to become very significantly bigger in new future. The World may recognize India for
its IT and biotechnology capabilities, there are other sectors of interest to small to medium
entrepreneurs which have made impressive strides in the last few years. India has many fast
emerging sectors that present ample opportunity for entrepreneurs. Here is a look at a few of them

• Food Processing: - The Indian food processing industry is a high priority sector and it has
a high growth in the upcoming year. India’s is the world largest producer after the China.
It is the sector which contributes nearly 90% of total sales of packaged foods in India in
FY 2013.Investment in India food processing sector grew at 20% per annum in 5 Years.

• Pharma Sector: India’s Health sector has been growing rapidly driven by a number of
factors such as increasing the average life expectancy and average income level and rising
awareness for health care. The India health care Industry that comprises hospitals,
medicines, infrastructure and medical devices is expected to reach US $ 100 billion by
2016 from the current US $ 65 billion growing around 20 % year of year as per rating
agency.

• Tourism: Tourism is now being seen as emerging of growth for economy and a key
employment generator because of low capital investment in trade, imports earn foreign
exchange. According to World Tourism Organization estimates India will lead in South
Asia with 8.9 million arrivals by 2020.

• Retail: The India Retail Industry is the largest among all the industries, accounting for over
10% of the country’s GDP and around 8% of the employment. The Retail Industry in India
has come forth one of the most dynamic and fast paced industry with several players
entering the market.

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Emerging sectors in an economy are type of markets that seems to be getting more important in
that economy. Companies that have good products in this sector should be able to experience rapid
growth in the near future. For an industry qualifies as emerging sector, not only on the basis of its
existing stage but also on expectation of future growth. There are many other sectors like
Insurance, Textiles, Entertainment, Manufacturing which comes under the criteria of emerging
sector.

The annualized Inflation rate in India is 5.65% in 2016 as per the Statistics and Program
Implementation .There are several which help to determine the Inflation impact in the country
.These are Demand factor, Supply Factor, Domestic Factor and Exchange Factor.

Indian Stock Market in the recent years, have sharply risen on the back of improving
macroeconomics fundamentals and large inflow of foreign money. Large foreign investments have
brought greater transparency and liquidity into the Indian Market. India entered the International
Financial Markets to mobilize resource towards the end of the 1970s around the time of the launch
of fourth Five Year Plans. India could not have carried on with its old policies and procedures, as
there were visible signs that the flow of soft financing would decrease with the emergence of new
claimants on such financing.

The rise of in the activities of International Finance Markets, it seemed to be the most opportune
time for the country to enter the markets for mobilizing resource support that was so vital for
financing India’s economic plans. In a country like India where the stock market is undergoing
significant with the liberalization measures, there are also concerns regarding its exposures to risk
in case of global crises.

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2.2 INDUSTRY ANALYSIS

Mutual Fund is one of the most attractive financial investments that play an important role in the
economy of a country. Mutual Fund Industry was introduced in India 1963 with the formation of
Unit Trust of India .Mutual Fund Industry has performed extraordinary in the recent years. Mutual
Fund has provided so many schemes Open-Ended Schemes, Equity Schemes, Closed ended
Schemes. The Success of the Scheme depends upon the competence of the management and its
soundness. The numbers of Open ended Schemes have been increased from the last few years
except 2009.The reason for decreasing Open –Ended Schemes are the global financial crisis.
According to the AMFI there were near about 1095 schemes in India out of which 727 were open
ended only.

The performance of Mutual Fund in the Industry are generally influenced by the by the
performance of the stock market and the economy as the whole .In a Mutual Fund Industry Equity
Fund are generally influenced by the stock market.

In an Mutual Fund Industry the stock market is influenced by the performance of the company as
well as the economy as whole.

The performance of the sector funds depend to the large extent on the company within that sector
.Bonds Funds are influenced by the interest rates and credit quality .As the Interest rate rises in the
mutual fund bond price fall and vice –versa. In a Similar case bond fund with the higher credit
ratings are less influenced by the changes in the economy.

The size of Mutual Fund Industry has increased uptos 165000 crore in the year. The worldwide
size of the Industry is about 37% of the GDP. .Securities and Exchange Board Of India has been
established as the regulatory for equity markets. Since 1992 reforms measures in the equity market
have mainly focused on regulatory, effectiveness, developing modern technological infrastructure.
.

The Major Players in the Mutual Fund Industry are:-

1) Franklin Mutual Fund : - It is an Open-Ended fund which seeks to achieve capital

appreciation through investments. It was launched in the year August 10, 2009. The
benchmark of this Scheme CNX 500. The Asset Size of this Scheme is Rs. 546.04 crore

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 the minimum Investment Under this Scheme an investor can do is Rs 5000. There is no
entry load in the Scheme but if the investor redeemed the units within two years from the
date of the allotment the investor has to pay 1.00% exit load. The Top ten Sector holdings
of Franklin Mutual Fund are: Financial, Healthcare, Engineering, Automobile,
Technology, Services, Energy, Communication, Diversified and Chemicals. The
Composition of fund is 95.63% in Equity, 4.57 % in Cash and 0% in debt.

2) SBI Mutual Fund: - It is an Open- Ended Equity and Large Cap Fund .The main
objective of this fund is to achieve capital appreciation through better investments. The
benchmark of this fund is CNX Nifty. The Asset Size Of this Scheme is Rs. 1443.9 crore.
The launch date of the Scheme is Jan 01; 1991.The minimum Investment that investor can
do under this Scheme is Rs. 5000. There is no entry load under the Scheme but there is an
exit load if investor redeemed within 365 days. The exit load is 1%.The Top Sector
holdings of this Scheme is Financial, Automobile , HealthCare, Technology, Energy,
FMCG, Diversified and Chemicals. The Composition of this Scheme is Equity 97.86%,
Debt 1.99% and Cash 0.15%.

3) Tata Balance Fund: - It is an Open- Ended Equity Oriented Fund. It was launched
in the year Oct 08,1995 .The Asset Size Of this Scheme is Rs 3050.9 crore as on April
30,2015.The minimum Investment under this Scheme is Rs . 1000. The benchmark of this
Scheme is CRISIL balanced The total stock holdings is 69 and the bond is 44. The top
Sector holdings of the Scheme is :-
Financial, Construction, HealthCare, Engineering, Technology, Automotive, Chemical,
Services, FMCG and Consumer Durables. The Composition of this fund is 71.79% in
Equity, 28.91% in Debt and Cash is -0.71%.There is no entry load but there is an exit load
if the investor redeemed within 540 days i.e. 1 %.

4) ICICI Mutual Fund: - It is an Open-Ended Equity Oriented Fund. It was launched in

the year Oct 31, 2002. The Asset size of this Scheme is Rs. 5726.3 Crore as on April30,
2015. The minimum Investment Under this Scheme is Rs. 5000. The benchmark of this

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 Scheme is CNX Nifty. The total stock holding is 60.The top Sector holdings of the Scheme
Financial, Energy, Technology, Automobile, Metals, FMCG, Services, Communication,
Diversified and HealthCare. There is no entry load in the Scheme but there is a 1% exit
load for redemption of units.

5) UTI Mutual Fund: - It is an Open-Ended Equity Oriented Fund. It was launched in the
year .The Asset size of this Scheme is Rs. 4,100 crore .The minimum Investment Under
this Scheme is Rs 1000. The benchmark of this Scheme is CNX Nifty. The total stock
holding is 77. The top Sector holding is Financial, Automobile, Technology, Energy,
Health Care, Construction, FMCG, Diversified, Consumer Durables and Communication.

6) HDFC Fund: - It is an Open-Ended Equity Oriented Fund .It was launched in the year.
The Asset size of the Scheme is Rs. The minimum investment under the Scheme is 500.
The benchmark of the Scheme is S&P BSE Index. The main objective of the Scheme is to
create Capital Appreciation. . The total Stock holding of the Scheme is 33. The top
HoldimSecholholFinancial, Automobile, Technology, Metals, Energy, FMCG etc.

7) Reliance Mutual Fund: - It is an Open-Ended Equity Oriented Fund. It was launched

in the year. The Asset size of the Scheme is Rs 1,533 crore. The minimum investment
under the Scheme 5000. The benchmark of the Scheme is S & P BSE Index. The main
objective of the fund is Capital Appreciation. The total stock holding of the Scheme is. The
top Sector holding is Construction, Financial, Chemical Technology, FMCG, HealthCare
and Textile. There is no entry load but there is an exit load if the unit is redeemed within
365 days.

8) Birla Mutual Fund :- It is an Open-Ended Equity Oriented Fund .It was launched in
the year Feb.10,1995.The Asset size of the Scheme is Rs 1414 crore. The minimum
investment under the Scheme is Rs 5000. The benchmark of the Scheme is Crisil Balanced
.The main objective of the fund is to create capital appreciation .The total stock holding of
the Scheme is 73. The top Sector holding of the Scheme is Automobile, Health Care,

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 FMCG, Financial, Chemicals, Technology, Engineering and Textile. There is no Entry load
but there is an exit load if the units are redeemed within 540 days.

9) Sundaram Mutual Fund: - It is an Open-Ended-Equity Oriented Fund. It was

launched in the year June 23, 2000.The Asset size is 14.1531 crore. The minimum
investment under the Fund is 5000. The benchmark of the Scheme is Crisil Balanced .The
main objective of the fund is to capital appreciation. The total stock holding is 34. The top
Sector holding is Financial, Technology, Chemicals, Engineering, Textile, FMCG, Health
Care and Automobile. There is no entry load but there is an exit if the units are redeemed
within 365 days.

10) JP Morgan Mutual Fund: - It is an Open-Ended Equity Oriented Fund .It was
launched in the year. The Asset size is 239 crore. The minimum investment under the fund
is 5000.. The benchmark of the Fund is S&P BSE 200 .The main objective of the fund is
to capital through the better investment .The total stock holding is 45. There is no entry
load but there is an exit if the units are redeemed within 365 and the exit load is 1%.The
top Sector holding are Financial, Automobile, HealthCare, Chemical, Engineering, Textile
and Diversified.

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The Success of Mutual Fund generally depends upon lot of research work. Before Investing the
amount in Mutual Fund investor should do a little research work to predict that whether this fund
is right or not for investing. Morningstar is the one which predict the best mutual fund performance.
It is the one which separate the funds into five equal groups ranked by the amount, and the fees
they charged. According to the research, funds in the cheapest group were more than twice to beat
the average fund in their category as those in most expensive group.

The expenses of the fund not only reflect the fees but also its size. The funds with smaller asset
bases have few shareholders over whom to spread their cost. , their expenses probably can be
higher.

In this project I have analyzed the performance of Reliance mutual fund on the basis of risk and
return analysis.

Reasons For The High Risk And Return In Mutual Fund

❖ The existence of mutual fund is one of the factors for predicting the return and the
risk in the fund in Industry.
❖ Expense Ratio is also one of the important factors that will tell about the amount
that mutual fund charge for managing the investor money.
❖ If the Standard deviation of the fund is less than the return of fund the fund will be
high and it will be considered as ideally the good mutual fund.
❖ Equity oriented fund is considered as the most risky as they directly invest the
amount in securities and there will be lot of volatility in the market. As the risk
involved under this fund is high so there will be the high return in the fund.
❖ The size of the Asset Management Company is also of the important factor on the
high risk and return in the fund.

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2.3 LEARNING DURING INTERNSHIP PRGRAM

➢ One Week Training given By Mr. Prashant Nayak about the company and the basic of the

Stock Market.

➢ Understanding about the equity market.

➢ Understanding about the invest active portfolio management of our company.

➢ Understanding about Demat account.

➢ Calling of 50 clients daily (trading – non- trading client both).

➢ Understanding about the KYC form.

➢ I have given four clients for trading and also fixed the two appointments with our

Territory manager Mr.Arun Giri and also went with manager for client meeting.

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2.4 LIST OF CALLING CLIENTS CLIENTS

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 COMPANY PROFILE

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COMPANY PROFILE

3.1 ORGANISATION OVERVIEW

PRABHUDAS LILLADHER PRIVATE LIMITED.

In 1944, Mr. Prabhudas Lilladher sheth registered a stock broking company in India with a vision
of rising up to become India’s leading financial services provider. It has been a long journey since.
A journey of success, based on strong adherence to ethics, uncompromising dedication to quality
and an attitude of excellence. Imbibed in our corporate culture, these founding principles have
guided us to reach the pinnacle that we are at today, over the years; PL has evolved from a
standalone brokerage firm to a one-stop shop to companies for all financial services.

With a team of dedicated experts and a nationwide distribution network of branches, ‘franchisees
and associates PL provides a comprehensive gamut of financial advisory services in the
institutional and retail domain. Our range of services includes equity & derivative broking,
investment banking, corporate advisory ,PMS, online trading loan against shares, Mutual fund ,
IPO’S, Real Estate, Home loan & loan against property .

Drawing on our teams profound technical expertise and years of extensive practical experience,
we develop customized solutions that are unique to each of our clients , thus ensuring high level
of customer satisfaction.

The CEO of Prabhudas Lilladher is AMISHA VORA she is a Chartered Accountant with over 27
years of venerable experience in financial services. Zee Business Market Analyst Awards has
honored her with the Editor’s Choice Award for “Outstanding Contribution to the Equity Markets”

Research Desk

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PL's research is known to be the best in the Indian financial industry. The Research Desk is
comprised of dedicated teams for technical and fundamental research, conducting painstaking
research to beat the market time and again. The lab has internally developed analytical tools and
models that have consistently provided clients an edge over the market. The findings of the
research team take shape in the form of our various daily, monthly and quarterly; fundamental &
technical research reports.

Behind the growth of Prabhudas Lilladher Group are the fundamental values of integrity,
responsiveness, enterprising, expertise and ambitious - Values encouraged, promoted and practices
by the Leadership Team. The leadership team at PL has established for itself a name to reckon
with not only because of the growth they drive but also for the values they bring to the table.

Dhiren Sheth Joint Managing Director & Group Vice Chairman.

Dilip Bhatt Joint Managing Director.

Amisha Vora Joint Managing Director.

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 Mihir Sheth Group Director

The number of employees is 800+ employees .Nearly PL has 360 offices in 120 cities offices
in cities .There are 60,000+ clients and 6 advisors ensure the expertise to deal with multiple
asset classes and it also enable to go beyond and it offer a one-step solution for the client’
investments. PL develops an understanding of equities, derivatives, currency derivatives, mutual
funds and also the commodity market.

PL get add value to every customer .The training and regular interactions with experts in the field
.PL has an effective research that help the financial advisor to take the sound financial decisions
.Employees of PL get to train with top research analysts and trainers quarterly at H.O.

PL not only generates the wealth but also forge strong relationships. They also conduct regular
seminars and interactive sessions with experts and senior management.

Multiple Trading Modes

• Offline Trading: PL offers trading through its widespread network of franchisees and
partners across the length and breadth of the country. A dedicated advisory desk is constantly
involved in addressing clients' queries pertaining to the entire gamut products and solutions
that we offer. This is backed by state-of-the-art technological infrastructure at all our branches.

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• Online Trading: A complete platform offering online trading in Equity, Derivatives,
Commodity, Currency, Mutual Fund's & IPO's, ready with various tools that empower you to
closely monitor your financial growth.

• Mobile Trading: PL offers its customers the convenience of mobile trading which allows
you to take decisions on buying and selling of your equity on the move. It offers a host of other
features like instant access to Net Position report, Live Advice and Top Gainers/Losers. You
can also synchronize your transactions with other media like Web, Desktop, CNT, etc.

Key Features
• 35+ member in equity research team with over 100 years of combined experience
• 150+ stocks covered, spanning across 20 mid and large sectors
• Rated as having one of the best corporate access in the market
• Strong relationships with top management of 200+ corporate houses
• Deep industry knowledge
• Strong database
• Strong investment ideas
• SMS and e-mail alerts

Vision
Our Vision Statement
To be India's leading and most preferred financial services
organization built on ethical practices and integrity.
3.2 SWOT ANALYSIS Of PRABHUDAS LILLADHER FINANCIAL
SERVICES

It is a tool that generally defines the strength, weakness , opportunities and threats of Prabhudas
lilladher private Ltd. It helps to analyzing what the organization can do and what it cannot do as

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well as the potential opportunities and the threats. Strength and Weakness it will come under the
Internal factor of the Company , Opportunities and Threats it come under the External factor of
the Company.

STRENGTH OF THE COMPANY

PL is a firm which is dedicated to the long term relationships with the clients and it empowers
them to gain from market opportunities. It offers the unique Online trading, Offline trading,
Mobile trading experience across exchanges. The basic Strength point PL is:-

• Expertise: - It has the experience of 70 Years in the Stock Market and it is one of the
best leading financial Service institutions in India and PL research team known for one of
the best research team in India.

• Multi Asset Class: It offers the Client benefit trading in equities, derivatives, mutual
fund, commodity, bonds and Currency.
• Flexibility Of Platforms:- PL offers the different types of Platforms to the clients for
trading:-
1) By an Online Portal – www.plindia.com
2) By a team of best Equity Advisor.
3) By the mobile- www.pl.in/mobile
4) By a call and trade facility at – 080-4094-3080

Faster Analysis and Better Decision: - PL offers the better analysis of MF schemes
asset classes. Investor can do the quick analysis of information available.

WEAKNESS OF THE COMPANY

PL is one of the leading financial Service Company. The weak point of the PL is that PL should
give more focus on the marketing of financial Products of the Company. As after the Completion

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of Three month Internship in PL I have analyzed after calling to so many clients that there are so
many People who don’t about the name of Prabhudas Lilladher. PL is the Company which is
having more potential to compete with the Top Most Mutual Fund. Slow and Weak management
Process in the Company is also one of the important factors for weakness of the company.

OPPORTUNITIES OF THE COMPANYS

The Opportunity Of the Company is that PL is now entering into the new sector like Housing
Loans, Real Estate and Banking Sector. And now they also have entered into the Sub-broker
business. This will help the company to gain from the market opportunities. And it also help them
to make strong position in the market.

THREAT FOR THE COMPANY

Charging of less brokerage rate by the PL Competitor Company can be the threat for the company.
And also the political, inflation, legal effect etc. can also be the threat for the company which can
affect the stock price

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 CONCEPTUAL ANALYSIS OF
MUTUAL FUND

31 | P a g e
4.1 ADVANTAGES OF MUTUAL FUND

1) Professional Management : An investor can avail the service of skilled

professionals and research team which analyses the performance and prospects of
companies and selects suitable investments to achieve the objective of the scheme.

2) Diversification : Mutual Fund invest in a number of companies across various

industries and asset classes .This reduce the risk, because all the stock cannot be decline at
the same time and in same proportion.

3) Convenient Administration: Investing in mutual fund help the investors in avoiding

many problems such as delayed payments and unnecessary follow up with brokers and
companies.

4) Return Potential: Mutual funds have the potential to provide a higher return as they
invest in a diversified basket of selected securities.

5) Low Costs: Mutual Funds are relatively less expensive as compared to the investing in
the capital market instruments because the investor can get the benefit of brokerage,
custodial and other fee expenses.
6) Liquidity: Investor can get back his money promptly at NAV from the mutual fund in
Open-Ended Scheme But In close –Ended Scheme investor can sell the units on stock
exchange at the prevailing market price.

7) Transparency: Investor can get the regular information on the value of his investment,
other disclosure etc.

32 | P a g e
 8) Flexibility: Investor can systematically invest or withdrawn funds from Systematic
Investment Plans or Systematic Withdrawal plans and dividend reinvestment plans
according to their investment need and convenience.

9) Choice of Scheme: Mutual Funds offer a variety of Scheme to suit varying investor’s
needs.

10) Well-Regulated: All mutual funds are registered with SEBI and they function with the
provisions of strict regulation designed to protect the interest of investors.

4.2 DISADVANTAGE OF MUTUAL FUND

1) Risk and Costs : Fluctuation in the market can create change in the value of mutual fund
investment. Due to the fluctuation in the market the fees and expense associated with mutual
funds investment can increase.

2) No Guarantee: there are a guarantee of return of Investment in mutual funds in debt and
equities.

3) No Control: Investor does not have the control on the investment in mutual fund because
all the decision is taken by the fund manager.

4) No Customized portfolio: All the decisions of portfolio of securities in which a fund

can invest are taken by the fund manager only so because of that investor does not have the
right to interference in the decision making of fund manager.

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4.3 TYPES OF MUTUAL FUND

1) Open-Ended Fund: Open – Ended Fund are those fund in which investor can redeemed
the shares at any time. An investor can directly purchase the share in the fund directly from
the fund itself rather than from existing shareholder.

2) Close – Ended Fund: A close –ended fund is a collective investment which is based
on issuing a fixed number of shares which are not redeemable from the fund.

3) Equity Fund: Equity fund are those fund which are generally invest in stock. These
funds are also known as the Stock Fund.

4) Debt Fund: Debt Fund is those funds that invest in fixed income securities like bond and
treasury bills.

5) Balance Fund: Balance fund are those fund that invest in equity fund and debt fund.

34 | P a g e
4.4 Schemes Of Mutual Fund

1) Growth Schemes :Growth Scheme are those scheme which normally invest a majority
of their funds in equities and are willing to bear short time decline in value for possible
future appreciation. The main aim of this Scheme is to provide capital appreciation over
the medium to long term. These are the schemes which are not for investors seeking regular
income.

2) Balanced Scheme: Balanced Scheme are those scheme which invest in both the shares
and fixed income securities. The aim of this scheme is to provide both growth and income
by periodically distributing part of income and capital gain they earn.

3) Income Schemes: Income Scheme is those which generally invest in fixed income
securities such as bonds and corporate debentures. The aim of this scheme is to provide
regular and steady income to investors.

4) Money Market Schemes : Money Market Schemes are those scheme that generally
invest in short term instruments such as money market instruments having 91 days
maturity ,treasury bills, certificate of deposits, Government Securities less than a year.

5) Exchange traded funds: An Exchange Traded Fund is a basket of stocks that reflects
the composition of the index , like Nifty ,Sensex etc. .It can be compared to a stock that
can be bought or sold during the market hours. ETF’s provide a means to investors to
participate in the gold market by buying and selling the units of the Stock Exchange without
taking its physical delivery.

35 | P a g e
4.5 STEPS TO CHOOSE THE RIGHT MUTUAL FUNDS

1. Identify your investment needs

A) What are the investor objectives for investment in funds?
b) How much the investor is willing to take?
c) What are the cash flow requirements?

2. Choose the right mutual fund?

. a) Track the record of performance over the last few years in relation to the appropriate

Benchmark and similar funds in the same category.

b) Look for reputation of fund house and the performance of fund manager.

c) How well the mutual fund is organized to provide efficient, prompt and personalized

Service.

d) Degree of transparency as reflected in frequency and quality of their communication.

3. Select the Ideal mix of schemes

Investor should invests in combination of schemes to achieve the specific goals instead

Investing in one scheme.

4. Investor can take the help of unbiased and independent mutual fund rating

Websites like Morningstar and Value research online. Investor can take the help of

Financial planneer.

36 | P a g e
4.6 RIGHTS OF THE UNIT HOLDER

1) The investor should receive the certificates of accounts confirming his title within 30
days from the date of closure of the subscription under open-ended schemes , or within 6
weeks from the date his request for a unit certificate is received by mutual fund.

2) The investor should receive information about the investment policies, financial position
and general affairs of the scheme.

3) The investor should receive the dividend within 30 days of their declaration and receive
the redemption or repurchase proceeds within 10 working days from the date of
redemption.

4) The investor should receive communication from the trustees about changes in the
fundamental analysis of the scheme.

5) The investor should inspect the documents of the mutual funds specified in the scheme
offer document.

6) The investor can expect the following from mutual fund :-

a) To publish the NAV , in accordance with the regulations: in the case of open ended
schemes.
b) To adhere the Code Of Ethics which require that investment decision are taken in the
interest of the unit holder.

7) The investor should receive the certificates of accounts confirming his title within 30
days from the date of closure of the subscription under open-ended schemes , or within 6
weeks from the date his request for a unit certificate is received by mutual fund.

37 | P a g e
 8) The investor should receive information about the investment policies, financial position
and general affairs of the scheme.

9) The investor should receive the dividend within 30 days of their declaration and receive
the redemption or repurchase proceeds within 10 working days from the date of
redemption.

10) The investor should receive communication from the trustees about changes in the
fundamental analysis of the scheme.

11) The investor should inspect the documents of the mutual funds specified in the scheme
offer document.

12) The investor can expect the following from mutual fund :-

c) To publish the NAV , in accordance with the regulations: in the case of open ended
schemes.
d) To adhere the Code Of Ethics which require that investment decision are taken in the
interest of the unit holder.

38 | P a g e
4.7 TAX BENEFITS OF MUTUAL FUNDS FOR INVESTORS

➢ Equity Linked Saving Scheme is one of the fund that offers an easy option to the investors
to obtain the tax benefits.
➢ These are the fund which have the locked period of three years. It offers the tax benefits
to the investor upto Rs. 1.50 lakh deduction for the investor under Section 80 C of the
Income Tax Act, 1961.It also provide the benefits of Capital Gains to the investor.
➢ The dividend which are declared under the ELSS Scheme are tax free during the
investment period .The profit which the investor get under the sale of ELSS units are Tax
Free and these are treated as long term capital gains.
➢ ELSS Fund are generally those fund which invest a large part of fund in equity and it has
the potential to build wealth over long term capital gain.
➢ Investor can invest the fixed amount in ELSS Fund every month through Systematic
Investment Planning .It help the investor to reduce the amount of large investment through
the end of financial year.
➢ Invesment in ELSS Fund through SIP is one of the best fund for investor as it provide both
the benefits of capital appreciation. The minimum investment that the investor can do in
ELSS Fund are low as Rs. 500. The locker lock period in this fund is 3 year as comparison
to other tax saving instrument and it has the potential to take the full advantage of growth
through equities.

39 | P a g e
 4.8 SEBI REGULATIONS FOR MUTUAL FUNDS

1) Formation:-Mutual Funds are required to set up Asset Management Companies with

fifty percent independent directors, separate board of trustee companies, consisting of
minimum fifty percent of independent trustee and to appoint independent custodians. It
ensures the relationships between trustees, funds manager and custodians.

2) Registration: SEBI prescribed registration of mutual funds taking into account track
record of a sponsor, integrity in business transactions and financial soundness for granting
the permission.

3) Documents: The documents of Schemes launched by mutual funds and the scheme are
required to be vetted by SEBI.

4) Assurance On returns: SEBI has introduced a change in the Securities Control and
Regulations Act governing the mutual funds. Mutual funds . Mutual funds are prevented
from giving any assurance on returns.

5) Minimum corpus: The minimum start up amount required for open-ended scheme is
Rs. 50 crore and Rs.20 crore for close-ended scheme.

6) Institutionalization: SEBI has institutionalized the market by introducing

proportionate allotment and the minimum amount that the investor is required to deposit
for mutual funds.

40 | P a g e
 7) Valuation Of Investment : It is very much important to provide the Net Asset Value
to the Investor for Mutual Fund Schemes with the information of the performance of
mutual fund.

8) Inspection: All the mutual funds are protected ,monitored and inspected by SEBI to
ensure compliance with the regulations.

9) Conduct: SEBI has clarified that mutual funds shall not offer buy back of schemes or
the assured returns to corporate investors.

10) Investment of mobilization of fund: SEBI has increased the time limit from 6 to 9
months in which mutual can invest the resources that raised from last tax saving schemes.

4.9 Mutual Fund Structure

The Mutual Fund are structured in two forms: Company Form and Trust Form.

➢ Company Form : It is the form of mutual funds which are most the most popular in U.S
➢ Trust Form: It is the form in India where the mutual funds are organized as Trusts. The
Trust is either managed by a Board Of Trustee or by a Trustee Company .Board Of
Trustee can hold the four members only .

A mutual fund in the form of Trust has the following components:-

1) Fund Sponsor: - A fund sponsor is the creation of mutual fund to earn money by doing
the fund management. Sponsor creates the AMC to manage the money of the trust. AMC
earns the fee for managing the money of investors. Fee is generally expressed in the
percentage of the fund which is managed by the AMC. The Sponsor either directly or
acting through the Trustees will also appoint the Custodian to hold the Asset of the mutual
fund. SEBI is the regulator of the mutual fund.

41 | P a g e
 2) Asset Management Companies: - It is the Investment manager of the trust. The
trustee is authorized by the Trust Deed which is appointed by the AMC. The AMC who is
appointed is required is required to be appointed by the SEBI.

3) Mutual Fund as Trust: - Mutual Fund has constituted in the form of Public Trust
which all the holdings and the transaction in the units comply with the prescribed
conditions.

4) Role Of Asset Management Companies:

a) Asset Management cannot be the Trustee or the AMC of the other mutual fund.
b) AMC can be appointed as an investment manager of the mutual funds.
c) AMC cannot be indulge in any other business.
d) AMC should have minimum worth of Rs.10 crore for the mutual funds
5) Custodian:-The custodian has custody of the assets of the fund. The custodians needs
to accept and give delivery of securities for the purchase and sale transactions of the
various schemes of the fund.

6) RTA: - The RTA maintains investors records. Their offices in various centres serve as
the Investor Service Centres, which perform a useful role in handling the documentation
of investors.

7) Regulator SEBI:- SEBI was officially formed by the Government of India in 1992.To
protect the Interest of the Investors, SEBI regulated the mutual funds

4.10 TOP PLAYERS OF MUTUAL FUND

1) Unit Trust Of India Mutual Fund:- It was established in the year Jan 14, 2003 .It
manage the UTI Mutual Fund with the UTI trustee Company Private Limited .Presently

42 | P a g e
 UTI manage the corpus of over Rs.20000 crore. Bank Of Baroda, Punjab National Bank,
Life Insurance Corporation are the sponsor of UTI Mutual Fund.

2) Reliance Mutual Fund:- It was established in the year 1882 under India Trust Act.
Reliance Capital Limited and Reliance Capital Trustee Co. Limited is are the Trustee of
Reliance Mutual Fund. It was generally formed for launching of various schemes under
which units are issued to public .The main objective of this fund is to provide the
opportunities to the investor to make investment in diversified schemes.

3) Franklin Templeton India Mutual Fund: It was set up in the year April 30,2005.
It is one of the largest financial services in the world. It provide opportunities to the investor
to buy or sell the Mutual Fund through mail or website. It include so many mutual fund
Open Ended Schemes , Hybrid Schemes , Close Ended Schemes etc.

4) Tata Mutual Fund:- It was set up in the Year 1882 under the Indian Trust Act. Tata
Sons Ltd, Tata Investment Corporation Ltd are the Sponsor of the Tata Mutual Fund. The
Asset management of Tata Mutual Fund .

5) ICICI Prudential Mutual Fund :- It was set up in the year 13th of October 1993.
The sponsor of ICICI Prudential Mutual Fund are Prudential and ICICI Ltd. The Asset
Management Company Limited incorporated on 22nd of June 1993.

6) Morgan Stanley Mutual Fund:- It was established in the year 1975. It is one of the
worldwide financial Services company and its leading market in credit services, investment
management etc. It provide the best customized asset management services and products
to government ,profit organization etc.

43 | P a g e
4.11 VALUATION TOOLS UDSED IN MUTUAL FUND

1) NET ASSET VALUE :- It is the market value of the assets of the scheme minus
liabilities. The per unit NAV is the Net Asset Value of the scheme divided by the number
of units outstanding on the valuation date .For Example:-
• If the market value of the asset of a fund is Rs. 200,000
• The total number of units issued to the investor is equal to 20000
• Then the NAV of the scheme is equal to 200000/20000=10

2) Entry Load and Exit Load :- Entry load is that is charged to investors for meeting
the selling and distribution expenses of the Scheme . A major portion of the entry load
is used for paying commissions to the distributor.
For Example: If the Investor has invested the amount Rs. 100 and the entry load amount
is 2.5% then Rs 2.50 is deducted from Rs.100 and Rs.97.50 will be invested in the Scheme.
For exit load if the Invested amount 100 has grown to 120 and the fund exit load is 2%
then Rs.2.40 has been deducted from the amount 120 then the redemption amount will be
117.60.However the exit load of various schemes may vary with the Investment Schemes.

3)Expense Ratio :- It is defined as the ratio of expenses incurred by a scheme to its

Average Weekly Net Assets i.e how much the investor amount is going toward expenses and how
much is being invested.

4) AUM:- Asset Under Management represent the money which is managed by a mutual
fund in a Scheme. It measures the total market value of all the financial assets which a financial
institution such as mutual fund, brokerage house manages on the behalf of the clients. It changes
according to the flow of money into particular fund.

4.12 ROLE OF SYSTEMATIC INVESTMENT PLAN IN MUTUAL FUND

44 | P a g e
SIP or Systematic Investment Plan is one of the platform in Mutual Fund that enable the investor
to invest through small and periodic installments. It is the convenient way to invest regularly
over the long term in disciplined manner .There are some of the funds which allow the monthly
investment to below Rs 100/-.

SIP helps the investor in different ways :-

• SIP provide the option for investor who does not have the common resources and time.
• SIP help in reducing the risk for investor because of Rupee Cost Averaging.
• SIP provide the benefit to the investor to invest with a small amount of money.
• Long term goal can be aligned with SIP
• It provide benefit to the investor in term of amount or quantity based SIP.

Amount Based SIP: It is a SIP where the investor can invest the fixed amount in their
selected share at pre-defined frequency.

Quantity based SIP : It is a SIP where the investor can purchase the fixed quantity of
shares of their desired company at pre-defined frequency

45 | P a g e
RETURN ANALYSIS OF MUTUAL FUND
5.1 OVERVIEW OF RISK AND RETURN ANALYSIS ON MUTUAL FUND

All the Investment avenue carry some risk, mutual fund also involve some risk. But however the
degree of risk may vary. Risk is generally refers to the possibility of money which the investor
invest the amount on different schemes of fund .The fund investment objective and the holdings
tell about the influential factor about how much the fund is risky. Risk and the Return both are
related to each other and this is called Risk-Trade Off.

Higher the risk taken by the investor on fund expected the higher return on mutual fund. And a
fund with lower risk has lower return on the funds .If the fund performs well then the money
invested by the investor will grow. And, If not it will suffer some losses on the principal amount.

Credit Risk
Market Risk

RISK

Interest rate risk Inflation risk

46 | P a g e
 5.2 TYPE OF MUTUAL FUND RISK

1) Market Risk :- It is the risk where the prices of all the securities in a particular market
rises or fall due to broad outside influences. The change in the prices of securities is known
as the market risk.
2) Interest Risk:- It is the risk at which the Interest rate movements in the Indian debt
markets can be volatile leading to the possibility of large price movements up or down in
debt and money market securities and because of that there will be large movements in the
NAV.
3) Credit Risk :- It generally tell about how stable is the company in which the fund invest
.It will also tell about the interest ,repay of principal when the investment matures.
4) Inflation Risk :- Inflation risk referred to as loss of purchasing power. When the rate
of Inflation exceeds the earnings on the Investor Investment , in that case investor run the
risk that actually be able to buy less, not more.
5) Currency Risk :- It generally refers to the fluctuation in market because of fluctuation
in Currency.
6) Manager Risk:- It generally refers to the risk where the manager of a fund may not
invest the amount wisely in fund. It is a very big risk so choosing the investor has to be
done very carefully.
7) Industry Risk:- It is the risk when there is a development in the Industry then there will
be chances that the value of stock associated with industry got fall down.

47 | P a g e
5.3 RISK AND RETURN ANALYSIS OF MUTUAL FUND SCHEMES

In this Project I am analyzing the risk and return analyzing of five different Schemes of Mutual
Fund are:-

• HDFC BALANCE FUND

• TATA BALANCE FUND
• SBI BALANCE FUND
• UTI BALANCE FUND
• KOTAK BALANCE FUND
I have also analyzed the risk and return of FIVE Mutual Fund with Nifty.

5.3.1 HDFC BALANCE FUND

HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act,
1956, on December 10, 1999, and was approved to act as an Asset Management Company for the
HDFC Mutual Fund by Securities and Exchange Board of India (SEBI) vide its letter dated July
3, 2000.

In terms of the Investment Management Agreement, the HDFC Trustee Company Ltd has
appointed the HDFC Asset Management Company Limited (AMC) to manage schemes of the
Mutual Fund. The paid up capital of the AMC is Rs. 25.241 crore as on September 30, 2013.

The benchmark of this Scheme is Crisil Balanced Fund. The minimum investment under this fund
is required Rs.5000.The Asset management of this Fund is Rs.3,685 crore .The top 10 sector of
this fund are
:Financial,Technology,Healthcare,Automobile,Chemicals,Diversified,Energy,Engineering
,FMCG and Metals. The Asset Management Of this Fund is Equity 68.2%, Debt 30.72% and Cash
0.46%.

48 | P a g e
5.3.2 TATA BALANCE FUND

It was set up in the Year 1882 under the Indian Trust Act. Tata Sons Ltd, Tata Investment
Corporation Ltd are Tata Mutual Fund (TMF), a brand from Tata Asset Management, one of the
oldest asset management companies in India and one of India’s leading investment managers, is
based on the dictum that managing wealth is as important as creating it. TMF is an Indian brand
with a global network of partnerships. The brand has established loyalty among its client base
through product differentiation, branding activities, the confidence of associates, performance of
the funds and overall experience of the customers. It is an Open-Ended Oriented Fund. It was
launched in the Year Oct 08,1995. The benchmark of this fund is Crisil Balanced Fund. The
minimum Investment under this Fund is Rs.5000.The Asset Management Of this Fund is Rs. 3,051
crore. The top Sector of this Fund are:- Financial, Construction, HealthCare, Engineering,
Technology, Automobile, Chemicals, Services, FMCG and Consumer Durables

5.3.3 SBI BALANCE FUND

SBI Mutual Fund is a bank sponsored fund house with its corporate
headquarters in Mumbai, India. It is a joint venture between the State Bank of India, an Indian
multinational, Public Sector banking and financial services company and Amundi, a
European asset management company.

5.3.4 UTI BALANCE FUND

It was established in the year Jan 14, 2003 .It manage the UTI Mutual Fund with the UTI trustee
Company Private Limited .Presently UTI manage the corpus of over Rs.20000 crore. Bank Of
Baroda, Punjab National Bank, Life Insurance Corporation are the sponsor of UTI Mutual Fund.

5.3.5 KOTAK BALANCE FUND Kotak Mahindra Mutual Fund (KMMF) has been established
as a Trust under the Indian Trusts Act, 1882. The Trust Deed establishing KMMF and the Deed of
Amendment has been registered under the Registration Act, 1908 by the office of the Sub-Registrar
of Assurances at Mumbai. KMMF has been registered with SEBI vide registration dated 23rd
June, 1998.

49 | P a g e
 Comparison of HDFC BALANCE Fund With NIFTY

An Investor has invested the amount of Rs. 100,000 on 01-MARCH-2012 in HDFC mutual Fund
– Regular Plan Growth Scheme

We examine how much the investor would get back if he withdrawn the entire proceeds on 1st
march 2013, 1st 2014, 1st march 2015 and 1st march 2016.

We will also compare the same with what would have been the return the same amount have been
invested in a fund which track the Nifty Index.

1. HDFC BALANCE FUND

HDFC NIFTY
Date NAV INDEX Year On Year Return
HDFC NIFTY
1-Mar-12 20.35 544.96
1-Mar-13 17.88 580.16 -12.14 6.46
1-Mar-14 19.63 630.52 9.79 8.68
1-Mar-15 30.38 897.62 54.76 42.36
1-Mar-16 24.35 730.63 -19.85 -18.60

Investment Lump sum Return HDFC minus

date Amount Date Return Amount(Rs.) Nifty HDFC
no. of units
invested(Rs.) HDFC NIFTY (Rs.) held
1-Mar-12 100000 4914.00
1-Mar-13 87862.41 106459.19 -18596.78 4914.00
1-Mar-14 96461.92 108680.36 -12218.45 4914.00
1-Mar-15 149287.47 142361.86 6925.61 4914.00
1-Mar-16 119656.02 81396.36 38259.66 4914.00

50 | P a g e
GRAPHICAL ANALYSIS RETURN OF HDFC BALANCE FUND WITH
NIFTY BENCHMARK

60

50

40

30

20
HDFC
NIFTY
10

0
1-Jan-13 1-Jan-14 1-Jan-15 1-Jan-16
-10

-20

-30

51 | P a g e
 Comparison of TATA BALANCE Fund With NIFTY

An Investor has invested the amount of Rs. 100,000 on 01-MARCH-2012 in TATA mutual Fund
– Regular Plan Growth Scheme

We examine how much the investor would get back if he withdrawn the entire proceeds on 1st
march 2013, 1st 2014, 1st march 2015 and 1st march 2016.

We will also compare the same with what would have been the return the same amount have been
invested in a fund which track the Nifty Index.

TATA BALANCE FUND

TATA NIFTY
Date NAV INDEX Year on year Return
TATA NIFTY
1-Mar-12 90.00 544.96
1-Mar-13 94.60 580.16 5.11 6.46
1-Mar-14 107.40 630.52 13.53 8.68
1-Mar-15 176.78 897.62 64.60 42.36
1-Mar-16 157.02 730.63 -11.18 -18.60

Investment Lump sum Return TATA minus

date Amount Date Return Amount(Rs.) Nifty TATA
no. of units
invested(Rs.) TATA NIFTY (Rs.) held
1-Mar-12 100000 1111.11
1-Mar-13 105111.11 106459.19 -1348.08 1111.11
1-Mar-14 113530.66 108680.36 4850.29 1111.11
1-Mar-15 164599.63 142361.86 22237.77 1111.11
1-Mar-16 88822.26 81396.36 7425.91 1111.11

52 | P a g e
GRAPHICAL ANALYSIS RETURN OF TATA BALANCE FUND WITH
NIFTY BENCHMARK

70.00

60.00

50.00

40.00

30.00

TATA
20.00
NIFTY

10.00

0.00
1-Jan-13 1-Jan-14 1-Jan-15 1-Jan-16
-10.00

-20.00

-30.00

53 | P a g e
 Comparison of SBI BALANCE Fund With NIFTY

An Investor has invested the amount of Rs. 100,000 on 01-MARCH-2012 in SBI mutual Fund –
Regular Plan Growth Scheme

We examine how much the investor would get back if he withdrawn the entire proceeds on 1st
march 2013, 1st 2014, 1st march 2015 and 1st march 2016.

We will also compare the same with what would have been the return the same amount have been
invested in a fund which track the Nifty Index.

SBI BALANCE FUND

SBI NIFTY
Date NAV INDEX year on year Return
SBI NIFTY
1-Mar-12 26.00 544.96
1-Mar-13 24.88 580.16 -4.31 6.46
1-Mar-14 28.01 630.52 12.58 8.68
1-Mar-15 43.96 897.62 56.94 42.36
1-Mar-16 35.43 730.63 -19.40 -18.60

Investment Lump sum Return

date Amount Date Return Amount(Rs.) SBI minus Nifty SBI
no. of units
invested(Rs.) SBI NIFTY (Rs.) held
1-Mar-12 100000 3846.15
1-Mar-12 95692.31 106459.19 -10766.88 3846.15
1-Mar-14 112580.39 108680.36 3900.02 3846.15
1-Mar-15 156943.95 142361.86 14582.09 3846.15
1-Mar-16 80596.00 81396.36 -800.36 3846.15

54 | P a g e
GRAPHICAL ANALYSIS RETURN OF SBI BALANCE FUND WITH
NIFTY BENCHMARK

70

60

50

40

30
SBI
20
NIFTY
10

0
1-Mar-13 1-Mar-14 1-Mar-15 Category 4
-10

-20

-30

55 | P a g e
 Comparison of UTI BALANCE Fund With NIFTY

An Investor has invested the amount of Rs. 100,000 on 01-MARCH-2012 in UTI mutual Fund –
Regular Plan Growth Scheme

We examine how much the investor would get back if he withdrawn the entire proceeds on 1st
march 2013, 1st 2014, 1st march 2015 and 1st march 2016.

We will also compare the same with what would have been the return the same amount have
been invested in a fund which track the Nifty Index

UTI BALANCE FUND

UTI NIFTY
Date NAV INDEX Year on year return
UTI NIFTY
1-Mar-12 20.87 544.96
1-Mar-13 21.79 580.16 4.41 6.46
1-Mar-14 23.94 630.52 9.87 8.68
1-Mar-15 32.08 897.62 34.00 42.36
1-Mar-16 25.39 730.63 -20.85 -18.60

Investment Lump sum Return

date Amount Date Return Amount(Rs.) UTI minus Nifty UTI
no. of units
invested(Rs.) UTI NIFTY (Rs.) held
1-Mar-12 100000 4791.57
1-Mar-12 104408.24 106459.19 -2050.95 4791.57
1-Mar-14 109866.91 108680.36 1186.55 4791.57
1-Mar-15 134001.67 142361.86 -8360.19 4791.57
1-Mar-16 79145.89 81396.36 -2250.47 4791.57

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GRAPHICAL ANALYSIS RETURN OF UTI BALANCE FUND WITH
NIFTY BENCHMARK

50.00

40.00

30.00
UTI

20.00

NIFTY
10.00

0.00
1-Jan-13 1-Jan-14 1-Jan-15 1-Jan-16

-10.00

-20.00

-30.00

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 Comparison of KOTAK BALANCE Fund With NIFTY

An Investor has invested the amount of Rs. 100,000 on 01-MARCH-2012 in KOTAK mutual
Fund – Regular Plan Growth Scheme

We examine how much the investor would get back if he withdrawn the entire proceeds on 1st
march 2013, 1st 2014, 1st march 2015 and 1st march 2016.

We will also compare the same with what would have been the return the same amount have
been invested in a fund which track the Nifty Index.

KOTAK BALANCE FUND

KOTAK NIFTY
Date NAV INDEX year on year return
KOTAK NIFTY
1-Mar-12 15.00 544.96
1-Mar-13 23.16 580.16 54.40 6.46
1-Mar-14 19.37 630.52 -16.36 8.68
1-Mar-15 19.44 897.62 0.36 42.36
1-Mar-16 14.03 730.63 -27.83 -18.60

Investment Lump sum Return KOTAK minus

date Amount Date Return Amount(Rs.) Nifty KOTAK
no. of units
invested(Rs.) KOTAK NIFTY (Rs.) held
1-Mar-12 100000 6666.67
1-Mar-12 154400.00 106459.19 47940.81 6666.67
1-Mar-14 83635.58 108680.36 -25044.79 6666.67
1-Mar-15 100361.38 142361.86 -42000.48 6666.67
1-Mar-16 72170.78 81396.36 -9225.58 6666.67

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GRAPHICAL ANALYSIS RETURN OF KOTAK BALANCE FUND WITH
NIFTY BENCHMARK

60

50

40

30

20
KOTAK
10
NIFTY
0
1-Jan-13 1-Jan-14 1-Jan-15 1-Jan-16
-10

-20

-30

-40

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 RISK ANALYSIS OF MUTUAL FUND

RISK ANALYSIS OF FIVE MUTUAL FUND WITH NIFTY

All the Investment avenue carry some risk, mutual fund also involve some risk. But however the
degree of risk may vary. Risk is generally refers to the possibility of money which the investor
invest the amount on different schemes of fund .The fund investment objective and the holdings
tell about the influential factor about how much the fund is risky.

TO Analyze the risk of FIVE MUTUAL FUNDS and NIFTY I have used the Following Ratio
to analyze the risk in different Scheme Of Mutual Fund:-

1) Sharpe Ratio

2) Expense Ratio

3) Standard Deviation

4) R-Squared

5) Beta Ratio

➢ Sharpe Ratio: - It is the measure of calculating the risk-adjusted return. It is considered as

the Industry standard for calculation of the risk . It is also the average return earned in
excess of the risk-free rate per unit of the volatility of the risk. It is used to analyze how
well the return of an asset compensate the investor for the risk taken, the higher the Sharpe
ratio number be the better. While comparing between the two asset then the expected return
against the benchmark with return risk free ,the asset with the the higher sharpe ratio will
give more return for the same risk.

Formulae Of Sharpe Ratio: - Risk Free Average Return Of Scheme÷ Standard Deviation
Of Scheme.

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 ➢ Expense Ratio: - It is the total percentage of funds’ assets used for management,
administration, advertising and other fund expenses. The lesser the expense ratio will be
better for the Company. Formulae for Expense Ratio:-

Expense Ratio: - Amount Spend In fund÷ Total AUM *100

➢ Standard Deviation: - It measures the volatility of the fund’s return in relation to its
average. It tells us about the fund return deviate from the historical mean return of the
scheme. For eg. If a fund has a return of 14% average rate of return and a standard deviation
of 5%, its return 9-17%.
Significance Of Standard Deviation:-If the Standard deviation will be higher the more
volatile will be the Fund’s return. Investor will generally prefer the fund with the lower
volatility.

➢ R- Squared: - It measures the relationship between portfolio with the benchmark. The
percentage of R-Squared varies from 1 to 100.It is a measure of the correlation of portfolio
return with the benchmark return. The formulae of R-Squared is :-

Correlation=Correlation between Index and Portfolio /Standard deviation of portfolio*

Standard Deviation of benchmark.

Significance Of R-Squared

1) R-Squared are used to ascertain the significance of portfolio beta.

2) Range For R-Squared
• 70-100% = Good correlation between the portfolio return and the benchmark
return
• 40-70%= Average correlation between the portfolio’s return and the
benchmarks return.
• 1-40%= Low correlation between the portfolio return and the benchmark
return.

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 ➢ Beta: - It measures the volatility of the fund with the benchmark. It generally tell about the
fund performance with that of the benchmark. The formulae of the benchmark is:-
Beta= Standard Deviation Of Fund÷Standard Deviation of benchmark * R-Squared

Significance Of the Beta

Beta=1, It happens when the stock movement is that of the market.

Beta>1, It means stock price movement surpass the market movement.
Beta<1, It means stock price moves less as compared to the market.

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 RISK ANALYSIS OF FUND RETURN

An Investor has invested the amount of Rs. 100,000 on 1st march 2012in HDFC Fund – Regular
Plan Growth Scheme.

We examine how much the investor will bear from the risk if he withdrawn the entire proceeds
on1st march 2013, 1st march2014 ,1st march 2015 and 1st march Dec 2016.

We will also compare the same with what would have been the risk the same amount have been
invested in a fund which track the Nifty Index

Year Market Return Scheme

2013 6.46 -12.14

2014 8.68 9.79
2015 42.36 54.76
2016 -18.6 -19.85
Average 9.725 8.14
Standard Dev. 25.02732573 33.52046837

Covariance of stock &

Market 594.6876
Variance of market 626.3670333
beta 0.94942353
Sharpe ratio
R Square 0.893318217 89.33182172
Total AUM (CRORE) 5543.32
Amount spend in fund 1158553.88
Expense Ratio 2.09

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An Investor has invested the amount of Rs. 100,000 on 1st march 2012in TATA Fund – Regular
Plan Growth Scheme.

We examine how much the investor will bear from the risk if he withdrawn the entire proceeds
on1st march 2013, 1st march2014 ,1st march 2015 and 1st march Dec 2016.

We will also compare the same with what would have been the risk the same amount have been
invested in a fund which track the Nifty Index

year
2013 6.46 5.11
2014 8.68 13.53
2015 42.36 64.60
2016 -18.60 11.18
Average 9.73 23.61
Standard Deviation 25.02732573 27.55927732

Covariance of stock &

Market 440.181125
Variance of market 626.3670333
beta 0.702752702
Sharpe ratio
R Square 0.724062013 72.40620126
Total AUM (CRORE) 5814.97
Amount spend in fund 132.58
Expense Ratio 0.000227998

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An Investor has invested the amount of Rs. 100,000 on 1st march 2012in SBI Fund – Regular Plan
Growth Scheme.

We examine how much the investor will bear from the risk if he withdrawn the entire proceeds
on1st march 2013, 1st march2014 ,1st march 2015 and 1st march Dec 2016.

We will also compare the same with what would have been the risk the same amount have been
invested in a fund which track the Nifty Index

MARKET
Year RETURN SCHEME
2013 6.46 -4.31
2014 8.68 12.58
2015 42.36 56.94
2016 -18.60 -19.40
Average 9.73 11.45
standard Deviation 25.02732573 33.01876777

Covariance of stock &

Market 602.1669875
Variance of market 626.3670333
beta 0.961364432
Sharpe ratio
Total AUM (CRORE) 4393.18
Amount spend in fund 104.99
Expense Ratio 0.000238984

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An Investor has invested the amount of Rs. 100,000 on 1st march 2012in UTI Fund – Regular Plan
Growth Scheme.

We examine how much the investor will bear from the risk if he withdrawn the entire proceeds
on1st march 2013, 1st march2014 ,1st march 2015 and 1st march Dec 2016.

We will also compare the same with what would have been the risk the same amount have been
invested in a fund which track the Nifty Index

MARKET
YEAR RETURN SCHEME
2013 6.46 4.41
2014 8.68 9.87
2014 42.36 34.00
2016 -18.60 0.85
Average 9.73 12.28
Standard Deviation 25.02732573 14.94599473

Covariance of stock &

Market 265.2002375
Variance of Market 626.3670333
beta 0.423394309
Sharpe ratio
Total AUM (CRORE) 1311.71
Amount spend in fund 33.97
Expense ratio 0.000258975

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An Investor has invested the amount of Rs. 100,000 on 1st march 2012in KOTAK Fund – Regular
Plan Growth Scheme.

We examine how much the investor will bear from the risk if he withdrawn the entire proceeds
on1st march 2013, 1st march2014 ,1st march 2015 and 1st march Dec 2016.

We will also compare the same with what would have been the risk the same amount have been
invested in a fund which track the Nifty Index

MARKET
Year RETURN SCHEME
2013 6.46 54.40
2014 8.68 -16.36
2015 42.36 0.36
2016 -18.60 -27.83
Average 9.73 2.64
Standard Deviation 25.02732573 36.39467395

covariance of stock &

Market 159.8783875
variance of market 626.3670333
beta 0.25524713
Sharpe ratio
Total AUM(LAKHS) 8957.18
Amount spend in fund 179.14
Expense ratio 0.000199996

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CONCLUSION
CONCLUSION OF RETURN ANALYSIS OF MUTUAL FUNDS SCHEMES WITH TOP
RATED FUNDS AND BENCHMARK

FOR HDFC BALANCED FUNDS

HDFC has given the negative return as compared to the benchmark nifty in the year 2013. In the
year 2013 the nifty benchmark has given the positive return of 6.46% whereas HDFC has given
the negative return value of -12.14%. In 2014 HDFC has given the high positive return of 9.79%
as compared to nifty benchmark has given less positive return of 8.68%. In 2015 HDFC has given
the high positive return of 54.76 as compared to nifty benchmark has given less positive return of
42.36%. In 2016 HDFC has given high negative return of -19.85 as compared to nifty benchmark
has given less negative of -18.60.

So, after seeing the returns of all five years in March 2015 HDFC has given the high positive return
of 54.76% as compared to nifty benchmark of 42.36%.

TATA BALANCE FUNDS

Nifty benchmark has given the high positive return of 6.46% as compared to Tata has given less
positive return of 5.11% in 2013. In 2014 Tata has given the high positive return of 13.53% as
compared to nifty benchmark has given less positive return of 8.68%. In 2015 TATA has given
the high positive return of 64.60% as compare to nifty benchmark has given less positive return of
42.36%. In 2016 nifty benchmark has given the high negative return of -18.60 % as compared to
TATA has given the less negative return of -11.18.

So, after seeing the returns of all five years in march 2015 TATA has given the high positive
returns as compare to nifty benchmark of 42.36%.

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SBI BALANCE FUNDS

Nifty benchmark has given the high positive return of 6.46% as compared to SBI has given the
less negative return of- 4.31% in 2013. In 2014 SBI has given the high positive return of 12.58%
as compared to nifty benchmark has given the less positive return of 8.68%. In 2015 SBI has given
the high positive return of 56.94% as compared to nifty benchmark has given the less positive
return of 42.36%. In 2016 SBI has given the high negative return of -19.40 as compared to nifty
benchmark has given less negative return of -18.60%.

So, after seeing the returns of all five year in March 2015 SBI has given the high positive return
of 56.94% as compared to nifty benchmark of 42.36%.

UTI BALANCE FUNDS

Nifty benchmark has given the high positive return of 6.46% as compared to UTI has given the
less positive return of 4.41% in 2013. In 2014 UTI has given the high positive return of 9.87 as
compare to nifty benchmark has given the less positive return of 8.68%. In 2015 nifty benchmark
has given the high positive return of 42.36% as compared to UTI has given the less positive return
of 34.00%. In 2016 UTI has given the high negative return of -20.85 as compared to nifty
benchmark has given the less negative return of -18.60%.

So, after seeing the returns of all five year in March 2015 nifty benchmark has given the high
positive return of 42.36% as compared to UTI has given of less positive return of 34.00%.

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KOTAK BALANCE FUND

KOTAK has given high positive return of 54.40% as compared to nifty benchmark has given less
positive return of 6.46% in 2013. In 2014 KOTAK has given the high negative return of -16.36%
as compared to nifty benchmark has given less positive return of 8.68% . In 2015 nifty benchmark
has given high positive return of 42.36% as compared to KOTAK has given less positive return of
0.36%. In 2016 KOTAK has given high negative return of -27.83 as compared to nifty benchmark
has given less negative return of -18.60%.

So, after seeing the returns of all year in March 2013 UTI has given the high positive return of
54.40% as compared to nifty benchmark has given less positive return of 6.46%.

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RECOMMENDATION

FOR BALANCE FUNDS

➢ Investor who is looking for aggressive portfolio they should invest their amount in HDFC
Fund.It means the investor who is willing to take lot of risk for getting the high return in
portfolio they can invest their amount in these Funds.
➢ Investor who is looking for moderate portfolio they should invest their amount in Nifty
benchmark Scheme as the Scheme has given the good return but the percentage of return
is less than the HDFC .

➢ Investor who is looking for aggressive portfolio they should invest their amount in TATA
Fund.It means the investor who is willing to take lot of risk for getting the high return in
portfolio they can invest their amount in these Funds.
➢ Investor who is looking for moderate portfolio they should invest their amount in Nifty
benchmark Scheme as the Scheme has given the good return but the percentage of return
is less than the TATA.

➢ Investor who is looking for aggressive portfolio they should invest their amount in SBI
Fund.It means the investor who is willing to take lot of risk for getting the high return in
portfolio they can invest their amount in these Funds.
➢ Investor who is looking for moderate portfolio they should invest their amount in Nifty
benchmark Scheme as the Scheme has given the good return but the percentage of return
is less than the SBI.

➢ Investor who is looking for aggressive portfolio they should invest their amount in SBI
Fund.It means the investor who is willing to take lot of risk for getting the high return in
portfolio they can invest their amount in these Funds.

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 ➢ Investor who is looking for moderate portfolio they should invest their amount in Nifty
benchmark Scheme as the Scheme has given the good return but the percentage of return
is less than the SBI.
➢ Investor who is looking for aggressive portfolio they should invest their amount in Nifty
benchmark It means the investor who is willing to take lot of risk for getting the high return
in portfolio they can invest their amount in these Funds.
➢ Investor who is looking for moderate portfolio they should invest their amount in UTI fund
as the fund has given the good return but the percentage of return is less than the Nifty.

➢ Investor who is looking for aggressive portfolio they should invest their amount in kotak
fund It means the investor who is willing to take lot of risk for getting the high return in
portfolio they can invest their amount in these Funds.
➢ Investor who is looking for moderate portfolio they should invest their amount in Nifty
benchmark scheme as the scheme has given the good return but the percentage of return
is less than the kotak.

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 REFRENCES

1) For mutual funds NAV: http://www.moneycontrol.com/india/mutual funds/minfo/hist

graph/MEW501

2) For NIFTY INDEX CHART: http://profit.ndtv.com/market/domestic_index_nifty/chart

3) For Mutual Fund Basic Information: www.investopedia.com

4) For Terms Used in Mutual Funds: www.icipruamc.in

5) NSEINDIA.COM

6) nifty bees for nifty benchmark nav value

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