Executive Summary The project has been carried out at Zenith consultancy Ltd with the title Analysis

of Mutual Fund on the basis of Alpha, Beta and Standard Deviation. The main function of having analysis of Mutual fund is to pinpoint the strong points and weaknesses of mutual fund schemes. For this I have taken the following parameters: Analyzing Mutual Fund using:1. Alpha: - I came to know how particulars Mutual Fund schemes performed related to what it was expected to do. 2. Beta:- By comparing Mutual Fund on the basis of beta we come to know how volatile a particular Mutual Fund as related to stock market is. 3. Standard Deviation:- The standard deviation of a fund measures this risk by

BETA : is a ratio that measures the market risk of securities or a fund. If the beta ratio exceeds one, the fund is more sensitive than funds in general to the fluctuations of the stock market. The beta may also be negative, which means that the value of the fund will, on average, move to the opposite direction than the general market development. Beta measures the sensitivity of rates of return on a fund to general market movements. It also measures the volatility of the fund, as compared to that of the overall market. The Market's beta is set at 1.00; a beta higher than 1.00 is considered to be more volatile than the market, while a beta lower than 1.00 is considered to be less volatile. Beta measures the systematic risk and show how price of security respond to the market foresees. It is calculated by relating the return on security with return for market.

= n XY ( x y) / n x (x) Where, X =index return, Y = fund return

Alpha: It measures the stock unsystematic return and it is average return independent of market return. It is calculated by comparing the funds actual performance with the risk adjusted expected return. = Y-*X Where, X =index return, Y = fund return

Standard Deviation: Standard deviation is a representation of the risk associated with a given security stocks, bonds, property, etc. or the risk of a portfolio of securities. Risk is an important factor in determining how to efficiently manage a portfolio of investments because it determines the variation in returns on the asset and/or portfolio and lives investors a mathematical basis for investment decisions. The overall concept of risk is that as it increases, the expected return on the asset will increase as a result of the risk premium earned higher return on an investment when said investment carries a higher level of risk. S.D is used to measure the variability of return i.e. the variation between the actual and expected return.

= y/n

It is used to measure the variation in the individual return from the average expected return over a certain period. Standard deviation is used in the concept of risk of a portfolio of investment. Higher the Standard Deviation means a greater fluctuation in expected return.

4. Schemes selected for project: Equity Diversified Balanced Fund Debt fund Liquid fund

RESEARCH OBJECTIVE: To evaluate investment performance of selected mutual funds in terms of risk and return. Also to analyze the performance of mutual fund schemes on the basis of various parameters. Primarily to understand the basic concepts of Mutual fund and its benefits as an investment avenue. Secondly, to compare and evaluate the performance of different schemes of mutual fund companies on the basis of risk, return and volatility

SCOPE OF PROJECT: The Schemes were categorized and selected on evaluating their performance and relative risk. The scope of the project is mainly concentrated on the different categories of the mutual funds such as equity schemes, debt funds, balanced funds and liquid fund.

RESEARCH METHODOLGY: Research Methodology is a very organized and systematic medium through which a particular case or problem can be solved. It is analytical, descriptive and quantitative research where the comparison between the different mutual fund schemes is made on the basis of risk, volatility and return.

FINDINGS AND ANALYSIS: The collection of information is based on the secondary probe. The information has been collected through various books, and internet. An attempt has been made to evaluate the performance of the selected mutual fund schemes. Performance of mutual fund schemes has been evaluated by using the following performance measures (a) Risk (b) Standard Deviation. (c) Beta

LIMITATIONS: To get an insight in the process of risk and return and deployment of funds by fund manager is difficult. The project is unable to analyse each and every scheme of mutual funds to create awarness about risk and return. The risk and return of mutual fund schemes can change according to the market conditions

INTRODUCTION TO MUTUAL FUND 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 invested by the fund manager in different types of securities depending upon the objective of the scheme. These could range from shares to debentures to money market instruments. The income earned through these investments and the capital appreciation realized by the scheme are shared by its unit holders in proportion to the number of units owned by them (pro rata). 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 portfolio at a relatively low cost. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy mutual fund is the ideal investment vehicle for todays 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. Draft offer document is to be prepared at the time of launching the fund. Typically, it pre specifies the investment objectives of the fund, the risk associated, the costs involved in the process and the broad rules for entry into and exit from the fund and other areas of operation. In India, as in most countries, these sponsors need approval from a regulator, SEBI (Securities exchange Board of India) in our case. SEBI looks at track records of the sponsor and its financial strength in granting approval to the fund for commencing operations. A sponsor then hires an asset management company to invest the funds according to the investment objective. It also hires another entity to be the custodian of the assets of the fund and perhaps a third one to handle registry work for the unit holders (subscribers) of the fund. 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.

MAJOR MUTUAL FUND COMPANIES IN INDIA ABN AMRO MUTUAL FUND ABN AMRO Mutual Fund was setup on April 15, 2004 with ABN AMRO Trustee(India) Pvt. Ltd. as the Trustee Company. The AMC, ABN AMRO Asset Management (India) Ltd. was incorporated on November 4, 2003. Deutsche Bank A G is the custodian of ABN AMRO Mutual Fund. BIRLA SUN LIFE MUTUAL FUND Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun Life Financial. Sun Life Financial is a global organization evolved in 1871 and is being represented in Canada, the US, the Philippines, Japan, Indonesia and Bermuda apart from India. Birla Sun life Mutual Fund follows a conservative long-term approach to investment. Recently it crossed a AUM of Rs.10, 000 crores. BANK OF BARODA MUTUAL FUND Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30, 1992 under the sponsorship of Bank of Baroda. BOB Assets Management Company Limited is the AUM of BOB Mutual Fund and was incorporated on November 5, 1992. Deutsche Bank AG is the custodian. HDFC MUTUAL FUND HDFC Mutual Fund was setup on June 30, 2000 with two sponsors namely Housing Development Finance Corporation Limited and Standard Life Investments Limited. ING VYSYA MUTUAL FUND ING Yysya Mutual Fund was setup on February 11, 1999 with the same named Trustee Company. It is a joint venture of Vysya and ING. The AMC, ING Investment Management (India) Pvt. Ltd. was on corporaed on April 6, 1998. PRUDENTIAL ICICI MUTUAL FUND The mutual fund of ICICI is a joint venture with Prudential Plc. Of America, one of the largest life insurance companies in the US of A. Prudential ICICI Mutual Fund was setup on 13 October, 1993 with two sponsors, Prudential Plc. and the AMC is Prudential ICICI Asset Management Company Limited incorporated on 22 June, 1993. SAHARA MUTUAL FUND Sahara Mutual Fund was setup on July 18, 1996 with Sahara India financial Corporation Ltd. as the sponsor. Sahara Assets Management Company Private Limited incorporated on August 31, 1995 works as the AMC of Sahara Mutual Fund. The paid up capital of the AMC stands at Rs.25.8 crore.

STATE BANK OF INDIA MUTUAL FUND State Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to launch offshore fund, the India Magnum Fund with a corpus of Rs.225 crore approximately. Today it is the largest Bank sponsored Mutual Fund in India. They already launched 35 schemes out of which 15 have already yield handsome returns toinvestors. State Bank of India Mutual Fund has more than Rs.5, 500 crores as AUM.Now it has an investor base of over 8 lakhs spread over 18 schemes. TATA MUTUAL FUND TATA Mutual Fund is a Trust under the Indian Trust Act, 1882. the sponsors for Tata Mutual Fund are Tata Sons Ltd., and Tata Investment Corporation Ltd. the investment manger is Tata management Limited is one of the fastest in the country with more than Rs.7,703 Crore(as on 2005) of AUM. KOTAK MAHINDRA ASSTE MANAGEMENT COMPANY Kotak Mahindra Asset Management Company is a subsidiary of KMBL. It is presently having more than 1, 99,818 investors in its various schemes. KMAMC stared its operations in December 1998. Kotak Mahindra Mutual Fund offers schemes catering to investors with varying risk return profiles. It was the first company to launch to dedicated gilt scheme investing only in government securities. 17 UNIT TRUST OF INDIA MUTUAL FUND UTI Asset Management Company Private Limited, established in Jan 24, 2003 manages the UTI Mutual Fund with the support of UTI Trustee Company Private Limited. UTI Asset Management Company presently manages a corpus of over Rs.20, 000 crore. The sponsors of UTI Mutual Fund are Bank of Baroda, Punjab National Bank, State Bank of India, and Life Insurance Corporation of India. The schemes of UTI Mutual Fund are Liquid Funds, assets Management Funds, Index Funds and Balanced Funds. RELIANCE MUTUAL FUND Reliance Mutual Fund was established as trust under Indian Trusts Act, 1882.The sponsor of RMF is Reliance Capital Limited and Reliance Capital Trustee Co. Limited is the Trustee. It was registered on June 30, 1995 as Reliance Mutual Fund which was changed on March 11, 2004. Reliance Mutual Fund was formed for launching of various schemes under which, units are issued to the public with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities. STANDARD CHARTERED MUTUAL FUND Standard Chartered Mutual Fund was setup on March 13, 2000 sponsored by Standard Chartered Bank. The Trustee is Standard Chartered Trustee Company Pvt. Ltd. Standard Chartered Asset Management Company Pvt. Ltd is the AMC which was incorporated with SEBI on December 20, 1999.

FRANKLIN TEMPLETON MUTUAL FUND The group, Franklin Templeton investment is a California based company with a global AUM of US $409.2(as on 2005). It is one of the largest financial service group in the world. Investors can buy or sell the Mutual Fund through their financial advisor or through mail or through their website. They have open end Diversified Equity schemes, Open end Sector Equity schemes, Open end Hybrid schemes, Open end tax saving schemes, Open end income and liquid schemes, Closed end Income schemes and Open end Fund of Funds schemes to offer. 18 MORGAN STANLEY MUTUAL FUND Morgan Stanley is a world wide financial services company and its leading in the market in securities, investment management and credit services. Morgan Stanley investment management was established in the year 1975. it provides customized asset management services and products to governments, corporations, pension funds and non profit organizations. Its services are also extending to high net worth individuals and retail investors. In India it is known as Morgan Stanley investment management Private Ltd. and its AMC is Morgan Stanley Mutual Fund. This is the first closed end diversified equity scheme serving the needs of Indian retail investors focusing on the long term capital appreciation. ESCORT MUTUAL FUNDS Escort Mutual Funds was set up on April 15th, 1996 with Escorts Finance Ltd. as its sponsor. The Trustee Company is Escorts Investments Trust Ltd.. its AMC was incorporated on Dec1st, 95 with the name Escorts Asset Management Ltd. ALLAINCE CAPITAL MUTUAL FUND Allaince Capital Mutual Fund was set up on December 30, 1994 with Alliance Capital Management Corp. of Delaware (USA) as sponsor. The Trustee is ACAM Trust Company Pvt. Ltd. and AMC, the Alliance Capital Asset Management India Pvt. Ltd. with the corporate office in Mumbai. BENCHMARK MUTUAL FUND Benchmark Mutual Fund was setup on June 12, 2001 with Niche Financial Services Pvt. Ltd. as the sponsor and Benchmark Trustee Company Pvt. Ltd. as the trustee Company. incorporated on October 16, 2000 and headquartered in Mumbai, Benchmark Assets Management Company Pvt. Ltd. is the AMC. CAN BANK MUTUAL FUND Can Bank Mutual Fund was setup on December 19, 1987 with Canara Bank acting as the sponsor. Canara bank investment Management Service Ltd. incorporated on March 2, 1993 is the AMC. The Corporate Office of the AMC is in Mumbai. CHOLA MUTUAL FUND Chola Mutual Fund under the sponsorship of Cholamandalam Investment & Finance Company Ltd. was setup on January 3, 1997. Cholamandalam Trustee Co. Ltd. is the Trustee Company and AMC is Cholamandalam AMC Limited.

LIC MUTUAL FUND Life Insurance Corporation on India setup LIC Mutual Fund on 19th June 1989. It contributed Rs.2 crore towards the corpus of the Fund. LIC Mutual Fund was constituted as a trust in accordance with the provisions of the Indian trust Act, 1882. The Company started its bsiness on 29th April 1994. The Trustees of LIC Mutual Fund have appointed Jeevan Bima Sahayog Asset Management Company Ltd. as the Investment Managers for mutual fund. GIC MUTUAL FUND GIC Mutual Fund, sponsored by General Insurance Corporation of India, a government of India undertaking and the four Public Sector General Insurance Companies, viz. National Insurance Co. Ltd, the New India Assurance Co. Ltd. the Oriental Insurance Co. Ltd and United India Insurance Co. Ltd and is constituted as a Trust in Accordance with the provisions of the Indian Trusts Act, 1882.

Types of Mutual Funds Mutual fund schemes may be classified on the basis of its structure and its investment objective. By Structure: Open-ended Funds An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity. Closed-ended Funds A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor. Interval Funds Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre-determined intervals at NAV related prices. By Investment Objective: Growth Funds: The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a majority of their corpus in equities. It has been proven that returns from stocks, have outperformed most other kind of investments held over the long term. Growth schemes are ideal for investors having a long-term outlook seeking growth over a period of time. Income Funds: The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures and Government securities. Income Funds are ideal for capital stability and regular income. Balanced Funds: The aim of balanced funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. In a rising stock market, the NAV of these schemes may not normally keep pace, or fall equally when the market falls. These are ideal for investors looking for a combination of income and moderate growth.

Money Market Funds The aim of money market funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and interbank call money. Returns on these schemes may fluctuate depending upon the interest rates prevailing in the market. These are ideal for Corporate and individual investors as a means to park their surplus funds for short periods. Load Funds: A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or sell units in the fund, a commission will be payable. Typically entry and exit loads range from 1% to 2%. It could be worth paying the load, if the fund has a good performance history. No-Load Funds: A No-Load Fund is one that does not charge a commission for entry or exit. That is, no commission is payable on purchase or sale of units in the fund. The advantage of a no load fund is that the entire corpus is put to work. Other Schemes: Tax Saving Schemes: These schemes offer tax rebates to the investors under specific provisions of the Indian Income Tax laws as the Government offers tax incentives for investment in specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The Act also provides opportunities to investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds, provided the capital asset has been sold prior to April 1, 2000 and the amount is invested before September 30, 2000. Special Schemes: Industry Specific Schemes: Industry Specific Schemes invest only in the industries specified in the offer document. The investment of these funds is limited to specific industries like InfoTech, FMCG, Pharmaceuticals etc. Index Schemes: Index Funds attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50. Sectoral Schemes: Sectoral Funds are those, which invest exclusively in a specified industry or a group of industries or various segments such as 'A' Group shares or initial public offerings. 23

BENEFITS OF MUTUAL FUND INVESTMENT 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. 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. 24 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.

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. LIMITATION OF MUTUAL FUND INVESTMENT 1. No Control Over Cost: An Investor in mutual fund has no control over the overall costs of investing. He pays an investment management fee (which is a percentage of his investments) as long as he remains invested in fund, whether the fund value is rising or declining. He also has to pay fund distribution costs, which he would not incur in direct investing. However this only means that there is a cost to obtain the benefits of mutual fund services. This cost is often less than the cost of direct investing. 2. No Tailor-Made Portfolios: Investing through mutual funds means delegation of the decision of portfolio composition 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 funds help investors overcome this constraint by offering large no. of schemes within the same fund. 3. Managing A Portfolio Of Funds: Availability of large no. of funds can actually mean too much choice for the investors. He may again need advice on how to select a fund to achieve his objectives. AMFI has taken initiative in this regard by starting a training and certification program for prospective Mutual Fund Advisors. SEBI has made this certification compulsory for every mutual fund advisor interested in selling mutual fund. a. Taxes: During a typical year, most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios. If your fund makes a profit on its sales, you will pay taxes on the income you receive, even if you reinvest the money you made. b. Cost of Churn: The portfolio of fund does not remain constant. The extent to which the portfolio changes is a function of the style of the individual fund manager i.e. whether he is a buy and hold type of manager or one who aggressively churns the fund. It is also dependent 26 on the volatility of the fund size i.e. whether the fund constantly receives fresh subscriptions and redemptions. Such portfolio changes have associated costs of brokerage, custody fees etc. that lowers the portfolio return commensurately.

Net Asset Value (NAV) The net asset value of the fund is the cumulative market value of the assets fund net of its liabilities. In other words, if the fund is dissolved or liquidated, by selling off all the assets in the fund, this is the amount that the shareholders would collectively own. This gives rise to the concept of net asset value per unit, which is the value, represented by the ownership of one unit in the fund. It is calculated simply by dividing the net asset value of the fund by the number of units. However, most people refer loosely to the NAV per unit as NAV, ignoring the "per unit". We also abide by the same convention. 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 HISTORY OF MUTUAL FUND: Mutual Funds in India (1964-2000) The end of millennium marks 36 years of existence of mutual funds in this country. The ride through these 36 years is not been smooth. Investor opinion is still divided. While some are for mutual funds others are against it. UTI commenced its operations from July 1964 .The impetus for establishing a formal institution came from the desire to increase the propensity of the middle and lower groups to save and to invest. UTI came into existence during a period marked by great political and economic uncertainty in India. With war on the borders and economic turmoil that depressed the financial market, entrepreneurs were hesitant to enter capital market. UTI commenced its operations from July 1964 "with a view to encouraging savings and investment and participation in the income, profits and gains accruing to the Corporation from the acquisition, holding, management and disposal of securities." Different provisions of the UTI Act laid down the structure of management, scope of business, powers and functions of the Trust as well as accounting, disclosures and regulatory requirements for the Trust. The opening up of the asset management business to private sector in 1993 saw international players like Morgan Stanley, Jardine Fleming, JP Morgan, George Soros and Capital International along with the host of domestic players join the party. But for the equity funds, the period of 1994-96 was one of the worst in the history of Indian Mutual Funds.

1999-2000 Year of the funds Mutual funds have been around for a long period of time to be precise for 36 yrs but the year 1999 saw immense future potential and developments in this sector. This year signaled the year of resurgence of mutual funds and the regaining of investor confidence in these MFs. This time around all the participants are involved in the revival of the funds the AMCs, the unit holders, the other related parties. However the sole factor that gave lifr to the revival of the funds was the Union Budget. The budget brought about a large number of changes in one stroke. An insight of the Union Budget on mutual funds taxation benefits is provided later. It provided centrestage to the mutual funds, made them more attractive and provides acceptability among the investors. The Union Budget exempted mutual fund dividend given out by equity-oriented schemes from tax, both at the hands of the investor as well as the mutual fund. No longer were the mutual funds interested in selling the concept of mutual funds they wanted to talk business which would mean to increase asset base, and to get asset base and investor base they had to be fully armed with a whole lot of schemes for every investor .So new schemes for new IPOs were inevitable. The quest to attract investors extended beyond just new schemes. The funds started to regulate themselves and were all out on winning the trust and confidence of the investors under the aegis of the Association of Mutual Funds of India (AMFI) One cam say that the industry is moving from infancy to adolescence, the industry is maturing and the investors and funds are frankly and openly discussing difficulties opportunities and compulsions. Future Scenario The asset base will continue to grow at an annual rate of about 30 to 35 % over the next few years as investors shift their assets from banks and other traditional avenues. Some of the older public and private sector players will either close shop or be taken over. Out of ten public sector players five will sell out, close down or merge with stronger players in three to four years. In the private sector this trend has already started with two mergers and one takeover. Here too some of them will down their shutters in the near future to come. But this does not mean there is no room for other players. The market will witness a flurry of new players entering the arena. There will be a large number of offers from various asset management companies in the time to come. Some big names like Fidelity, Principal, Old Mutual etc. are looking at Indian market seriously. One important reason for it is that most major players already have presence here and hence these big names would hardly like to get left behind. The mutual fund industry is awaiting the introduction of derivatives in India as this would enable it to hedge its risk and this in turn would be reflected in its Net Asset Value (NAV). SEBI is working out the norms for enabling the existing mutual fund schemes to trade in derivatives. Importantly, many market players have called on the Regulator to 30 initiate the process immediately, so that the mutual funds can implement the changes that are required to trade in Derivatives.

WHY SHOULD INVESTORS INVEST IN MUTUAL FUND? An investor avails of the service of experienced and skilled professionals who are backed by a dedicated of companies and selects suitable investments to achieve the objectives of the schemes. 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 the stocks decline at the same time and in the same proportion. The investors achieve this diversification through a mutual fund with far less money than you can do on our own. Investing in a mutual fund reduces paperwork and helps an investor avoid many problems such as bad deliveries, delayed payments and unnecessary follow. EMERGING ISSUES IN MUTUAL FUND Rating of Mutual Fund Schemes: Total returns has been the criteria for measuring the performance of mutual fund. Therefore, CRISIL has development a composite performance ranking which measures performance for each of the open- ended schemes. According to CRISIL, this measures is applicable only to those schemes, which are at least two years old and disclose 100% of their portfolios. Changes in Mutual Fund due to the Advent of Net: As per SEBI regulations, bond funds and equity funds can charge a maximum of 2.25% and 2.5% as administrative fees, respectively. Mutual Funds could bring down their administrative costs to 0.75%, if trading is done online and consequently improves the return potential of their schemes. Mutual Funds could provide better advise or servise to their investors through the Net. New Norms on NPA Classification: The Malegan committee has made important recommendations regarding norms on classification of NPAs in debt securities and norms for valuation of liquid securities in a mutual fund schemes. The committee has recommended that debt securities held by mutual fund in their portfolio can be classified as NPA, if the principal or interest is not received for six months. The mutual funds will have to disclose the NPAs to unit holders in a half-yearly basis. INFLUENCE OF TECHNOLOGY: A majority of the mutual fund have their own websites providing basic information relating to the schemes. Mutual Fund have begun to use electronic fund transfer method top remit their dividends and redemption proceeds. However, the most significant influence of technology is seen in servicing investors. So technology can bridge the gap between investor education and products positioning.

PRODUCT INNOVATION: Product innovation is an emerging feature in the mutual fund industry in India. Most of the products offered by mutual fund can be divided among three classes of cash funds, income funds and equity funds. The year 2002 was different in that the products offered were far more innovative. Templeton India launched a debt fund that would invest predominantly in floating rate bonds. INDICES FOR MUTUAL FUNDS: The AMFI has recently launched four indices for gilt funds and another set of indices for balanced funds, bond funds, monthly income plans and liquid funds. The indices, which have been developed and will be maintained by ICICI securities and finance companied and CRISIL.com, respectively, will be mandated for use by mutual funds to enable the comparison of performance. FUNDS OF FUNDS: The SEBI may soon permit mutual funds to float a new category of funds called funds of funds, which will invest in other mutual fund schemes. These scheme will enable people to invest in different mutual funds schemes through a single find. MUTUAL FUND BEST PRCTICES THE PRACTICE OF RESTFUL Risk- Reward Relationship: A clear and direct relationship of risk with reward has to be developed and the concept instilled in the mind of the investor, and this is the basis of all classification of Mutual Fund. Ease of Business: The business of Mutual Fund is not an easy one. It is easy only for the ones who have either been in the business for a long time, or for the people, institutions which have been in the investment space for a long time and are willing to experiment and learn from their mistake, and can be flexible. Service: The service provision ought to be flawless, for after all, Mutual Fund is a service, and the only way the number of customers can be increased and the existing ones retained is by providing a higher level of service, thereby increasing customer satisfaction. Trust / Transparency: A high level of transparency has to be built into the system of processes and investments in Mutual Fund. This is of vital importance as the terms Transparency and Trust, in the case of Mutual Funds is synonyms. Trust in the firm would come only with transparency. And with Trust would come more business.

Fairness to Investors: This, of course, is an offshoot of the previous point that we made. No business

can survive unless it is fair to the customer. However, what is important here is that it has to be made evidently clear that the firm is actually being fair to its customers. Modesty doesnt help, and this has to be told to your customers so that they actually notice. Utility: The objective of the investment have to be always kept in mind while marketing Mutual Fund, for if there is a deviation, its utility is lost, or the customers remain unsatisfied. Liquidity: This has again and again highlighted, for it the basic premise that most investors invest in Mutual Fund only because of the high level of liquidity. There has to be a good market development for your issue, so that there is a ready market available for them.

COMPARATIVE STUDY OF MUTUAL FUNDS ON THE BASES OF ALPHA, BETA AND STANDARD DEVIATION ALPHA:-

ALPHA:Measures how much if any of the 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 under performed for the amount of extra, fund-specific risk that the fund's investors undertook.

BETA :Beta is useful statistical measure, which 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.

STANDARD DEVIATION :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.

SENSEX RETURNS: MONTH SENSEX RETURNS March -0.14 April 0.14 May 0.02 June -0.17 July 0.11

CALCULATION OF RETURNS ON MUTUAL FUND SCHEMES: BALANCE FUND: TATA BALANCED FUND (GROWTH) PRU ICICI FUND (GROWTH) HDFC PRUDENCE FUND (GROWTH) MAGNUM BALANCE FUND (GROWTH)
JM BALANCED FUND (GROWTH)

TATA BALANCED FUND DATE (%) 1-Mar 2-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar 20-Mar 21-Mar 22-Mar 23-Mar 26-Mar 28-Mar 27-Apr 30-Apr 31-May NAV RETURN NAV DATE NAV DATE NAV DATE NAV RETURN RETURN RETURN RETURN (%) (%) (%) (%) -1.30% 2-Apr -1.94 3-May 1.16% 1-Jun 0.09% 2-Jul 0.34% -3.23% 3-Apr 0.74% 4-May -0.39% 4-Jun -0.49% 3-Jul 0.74% 1.10% 4-Apr 1.06% 7-May -0.23% 5-Jun 0.62% 4-Jul 0.17% 1.10% 5-Apr 0.55% 8-May -0.44% 6-Jun -1.10% 5-Jul -0.27% -0.91% 9-Apr 1.64% 9-May 0.07% 7-Jun -0.09% 6-Jul 0.52% 2.36% 10-Apr 0.28% 10-May 0.01% 8-Jun -0.59% 9-Jul 0.45% -0.84% 11-Apr 0.50% 11-May 0.26% 11-Jun -0.22% 10-Jul -0.39% 0.80% 12-Apr -0.13% 14-May 0.83% 12-Jun -0.11% 11-Jul 0.14% 0.82% 13-Apr 1.52% 15-May 0.08% 13-Jun -0.45% 12-Jul 1.17% -1.96% 16-Apr 1.74% 16-May 1.19% 14-Jun 1.18% 13-Jul 0.83% -0.60% 17-Apr -0.47% 17-May 0.83% 15-Jun 0.04% 16-Jul 0.17% 1.33% 18-Apr 0.01% 18-May -0.05% 18-Jun -0.25% 17-Jul -0.68% 0.24% 19-Apr 0.06% 21-May 0.59% 19-Jun 1.11% 19-Jul 0.83% 0.93% 20-Apr 1.08% 22-May 0.24% 20-Jun 0.75% 20-Jul 0.07% 1.87% 23-Apr 0.10% 23-May -0.28% 21-Jun 0.70% 23-Jul 0.94% 0.31% 24-Apr 0.81% 24-May -0.62% 22-Jun -0.23% 24-Jul 0.14% -0.41% 25-Apr 0.16% 25-May 0.55% 25-Jun 0.31% 25-Jul -0.75% -1.17% 26-Arp -0.13% 28-May 0.37% 26-Jun 0.48% 26-Jul -0.09% -0.78% 29-May 0.71% 27-Jun -0.31% 27-Jul 2.66% 0.61% 30-May -0.47% 28-Jun 0.29% 30-Jul 0.01% 0.79% 29-Jun 0.95% 31-Jul 1.67% DATE

TOTAL 0.44% TOTAL -1.85% TOTAL 5.20% TOTAL 2.68% TOTAL 8.67% Avg. RETURNS 0.02% Avg. RETURNS 0.092325 Avg. RETURNS 0.25% Avg. RETURNS 0.13% Avg. RETURNS 0.41% 40 PRU ICICI BALANCED FUND DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETURN RETURN RETURN RETURN RETURN (%) (%) (%) (%) (%)

1-Mar 1.05% 2-Apr -1.92% 3-May 1.03% 1-Jun 0.16% 2-Jul 0.02% 2-Mar -1.66 3-Apr 0.80% 4-May -0.74% 4-Jun -0.60% 3-Jul 0.90% 5-Mar -3.23% 4-Apr 0.64% 7-May -0.34% 5-Jun 0.55% 4-Jul -0.22% 6-Mar 1.44% 5-Apr 0.39% 8-May -0.60% 6-Jun -1.62% 5-Jul -0.08% 7-Mar -0.86% 9-Apr 1.57% 9-May 0.09% 7-Jun -0.06% 6-Jul 0.14% 8-Mar 2.54% 10-Apr -0.12% 10-May 0.09% 8-Jun -0.56% 9-Jul 0.57% 9-Mar -0.70% 11-Apr 0.42% 11-May 0.55% 11-Jun 0.03% 10-Jul -0.30% 12-Mar 0.34% 12-Apr -0.47% 14-May 1.15% 12-Jun -0.20% 11-Jul 0.30% 13-Mar 0.76% 13-Apr 1.96% 15-May 0.17% 13-Jun -0.59% 12-Jul 0.97% 14-Mar -2.11% 16-Apr 1.20% 16-May 0.79% 14-Jun 1.27% 13-Jul 0.59% 16-Mar 0.00% 17-Apr -0.66% 17-May 0.79% 15-Jun 0.03% 16-Jul -0.21% 19-Mar 1.11% 18-Apr 0.38% 18-May -0.17% 18-Jun -0.34% 17-Jul -0.16% 20-Mar 0.76% 19-Apr -0.12% 21-May 1.01% 19-Jun 0.92% 19-Jul 0.83% 21-Mar 0.70% 20-Apr 1.24% 22-May 0.06% 20-Jun 0.78% 20-Jul 0% 22-Mar 1.71% 23-Apr 0.03% 23-May -0.39% 21-Jun 0.22% 23-Jul 0.69% 23-Mar -0.15% 24-Apr 0.66% 24-May -0.58% 22-Jun -0.47% 24-Jul 0.21% 26-Mar -0.59% 25-Apr 0.37% 25-May 0.59% 25-Jun -0.06% 25-Jul -0.92% 28-Mar -1.31% 26-Apr -0.23% 28-May 0.83% 26-Jun 0.36% 26-Jul -0.18% 27-Apr -1.33% 29-May 0.55% 27-Jun -0.17% 27-Jul -2.70% 30-Apr 0.03% 30-May -0.79% 28-Jun 0.19% 30-Jul -0.24% 31-May 0.41% 29-Jun 0.85% 31-Jul 1.61% TOTAL -0.20% TOTAL 4.84% TOTAL 4.50% TOTAL 0.69% TOTAL 1.90% Avg. RETURNS 0.25% Avg. RETURNS 0.24% Avg. RETURNS 0.21% Avg. RETURNS 0.03% Avg. RETURNS 0.09% 41 HDFC PRUDENCE FUND DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETURN RETURN RETURN RETURN RETURN (%) (%) (%) (%) (%) 1-Mar 0.15% 2-Apr -1.50% 3-May 0.79% 1-Jun 0.71% 2-Jul 0.72% 2-Mar -1.05% 3-Apr 0.52% 4-May -0.57% 4-Jun -0.57% 3-Jul 0.67% 5-Mar -3.39% 4-Apr 0.75% 7-May -0.12% 5-Jun 0.72% 4-Jul -0.51% 6-Mar 0.09% 5-Apr 0.61% 8-May -0.59% 6-Jun -0.88% 5-Jul -0.34% 7-Mar -1.34% 9-Apr 1.49% 9-May 0.22% 7-Jun -0.11% 6-Jul 0.28% 8-Mar 1.91% 10-Apr 0.55% 10-May -0.01% 8-Jun -0.36% 9-Jul 0.75% 9-Mar -0.19% 11-Apr 0.83% 11-May 0.48% 11-Jun 0.15% 10-Jul -0.24% 12-Mar 0.66% 12-Apr -0.47% 14-May 1.37% 12-Jun -0.66% 11-Jul -0.06% 13-Mar 0.29% 13-Apr 0.97% 15-May 0.30% 13-Jun -0.15% 12-Jul 1.17% 14-Mar -1.42% 16-Apr 1.50% 16-May 0.62% 14-Jun 1.17% 13-Jul 0.28% 16-Mar -0.14% 17-Apr -0.73% 17-May 0.11% 15-Jun 0.16% 16-Jul 0.66% 19-Mar 0.68% 18-Apr 0.09% 18-May -0.30% 18-Jun -0.24% 17-Jul -0.65% 20-Mar 0.72% 19-Apr 0.01% 21-May 0.57% 19-Jun 0.69% 19-Jul 1.02%

21-Mar 0.98% 20-Apr 0.45% 22-May 0.24% 20-Jun 1.12% 20-Jul 0.13% 23-Mar -0.24% 23-Apr 0.13% 23-May 0.01% 21-Jun 0.41% 23-Jul 0.57% 26-Mar -0.31% 24-Apr 0.24% 24-May -0.85% 22-Jun -0.32% 24-Jul -0.07% 28-Mar -1.18% 25-Apr 0.55% 25-May 0.37% 25-Jun 0.21% 25-Jul -0.42% 26-Apr -0.26% 28-May 1.21% 26-Jun 0.37% 26-Jul 0.19% 27-Apr -0.41% 29-May 0.33% 27-Jun 0.11% 27-Jul -1.49% 30-Apr 0.81% 30-May -0.42% 28-Jun -0.09% 30-Jul -0.04% 31-May 0.88% 29-Jun 0.71% 31-Jul 1.73% TOTAL -3.78% TOTAL 6.13% TOTAL 4.64% TOTAL 3.15% TOTAL 4.35% Avg. RETURNS -0.22% Avg. RETURNS 0.31% Avg. RETURNS 0.22% Avg. RETURNS 0.15% Avg. RETURNS 0.21% 42 MAGNUM BALANCE FUND DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETURN RETURN RETURN RETURN RETURN (%) (%) (%) (%) (%) 1-Mar 0.89% 2-Apr -2.00% 3-May 0.45% 1-Jun 0.32% 2-Jul 0.65% 2-Mar -1.38% 3-Apr 0.52% 4-May -0.28% 4-Jun -0.24% 3-Jul 0.86% 5-Mar -2.64% 4-Apr 0.88% 7-May -0.31% 5-Jun 0.05% 4-Jul 0.08% 6-Mar 1.01% 5-Apr 0.39% 8-May -0.78% 6-Jun -1.01% 5-Jul -0.36% 7-Mar -0.60% 9-Apr 1.34% 9-May 0.31% 7-Jun -0.05% 6-Jul 0.13% 8-Mar 2.09% 10-Apr 0.32% 10-May 0.14% 8-Jun -0.94% 9-Jul 0.72% 9-Mar -0.71% 11-Apr 0.35% 11-May 0.48% 11-Jun -0.35% 10-Jul -0.13% 12-Mar 0.21% 12-Apr -0.56% 14-May 0.75% 12-Jun -0.44% 11-Jul 0.23% 13-Mar 0.72% 13-Apr 1.41% 15-May -0.08% 13-Jun -0.33% 12-Jul 0.72% 14-Mar -1.96% 16-Apr 1.65% 16-May 1.36% 14-Jun 0.90% 13-Jul 0.56% 16-Mar -0.70% 17-Apr -0.57% 17-May 0.60% 15-Jun 0.24% 16-Jul 0.53% 19-Mar 1.46% 18-Apr 0.60% 18-May 0.33% 18-Jun 0.00% 17-Jul -0.53% 20-Mar 0.57% 19-Apr 0.03% 21-May 0.62% 19-Jun 1.27% 19-Jul 0.63% 21-Mar 0.63% 20-Apr 1.11% 22-May 0.00% 20-Jun 0.83% 20-Jul -0.08% 23-Mar 1.42% 23-Apr 0.03% 23-May -0.30% 21-Jun 0.37% 23-Jul 0.28% 26-Mar -0.06% 24-Apr 1.16% 24-May -0.11% 22-Jun -0.29% 24-Jul -0.13% 28-Mar -0.50% 25-Apr 0.86% 25-May 0.54% 25-Jun -0.16% 25-Jul -0.35% -1.12% 26-Apr -0.39% 28-May 0.27% 26-Jun 0.35% 26-Jul 0.08% 27-Apr -1.16% 29-May 0.99% 27-Jun -0.11% 27-Jul -2.54% 30-Apr 0.51% 30-May -0.27% 28-Jun 0.26% 30-Jul 0.31% 31-May 0.19% 29-Jun 0.92% 31-Jul 1.34% TOTAL -0.67% TOTAL 6.48% TOTAL 4.90% TOTAL 1.59% TOTAL 3.00% Avg. RETURNS -0.04% Avg. RETURNS 0.32%

Avg. RETURNS 0.23% Avg. RETURNS 0.08% Avg. RETURNS 0.14% 43 JM BALANCED FUND DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETURN RETURN RETURN RETURN RETURN (%) (%) (%) (%) (%) 1-Mar 0.36% 2-Apr 1.92% 3-May 1.57% 1-Jun 0.04% 2-Jul 1.08% 2-Mar -1.04% 3-Apr 0.70% 4-May -0.88% 4-Jun -0.14% 3-Jul 1.50% 5-Mar -2.75% 4-Apr 0.37% 7-May -0.46% 5-Jun -0.04% 4-Jul 1.04% 6-Mar 0.66% 5-Apr 0.78% 8-May -0.30% 6-Jun -1.23% 5-Jul -0.58% 7-Mar -1.68% 9-Apr 1.28% 9-May 0.00% 7-Jun -0.67% 6-Jul 1.48% 8-Mar 3.28% 10-Apr 0.05% 10-May 0.30% 8-Jun -0.90% 9-Jul 0.06% 9-Mar -1.06% 11-Apr 0.72% 11-May 0.13% 11-Jun -0.28% 10-Jul 0.57% 12-Mar 1.07% 12-Apr 0.18% 14-May 0.51% 12-Jun -0.75% 11-Jul 0.51% 13-Mar 0.83% 13-Apr 2.37% 15-May -0.13% 13-Jun -0.42% 12-Jul 1.22% 14-Mar -1.37% 16-Apr 2.67% 16-May 1.18% 14-Jun 1.39% 13-Jul 0.57% 16-Mar -0.51% 17-Apr 0.94% 17-May 0.79% 15-Jun 0.74% 16-Jul 0.57% 19-Mar 1.30% 18-Apr 0.26% 18-May -0.08% 18-Jun -0.75% 17-Jul -0.39% 20-Mar 0.69% 19-Apr 0.30% 21-May 0.70% 19-Jun 0.88% 19-Jul 0.72% 21-Mar 0.37% 20-Apr 0.90% 22-May 0.70% 20-Jun 0.67% 20-Jul -0.26% 22-Mar 1.55% 23-Apr 0.51% 23-May -0.61% 21-Jun 0.65% 23-Jul 1.14% 23-Mar 0.04% 24-Apr 0.50% 24-May -0.70% 22-Jun 0.41% 24-Jul -0.24% 26-Mar -0.45% 25-Apr 0.85% 25-May 0.12% 25-Jun -0.34% 25-Jul -1.11% 28-Mar -1.62% 26-Apr 0.30% 28-May 0.87% 26-Jun 0.35% 26-Jul 0.95% 27-Apr 1.02% 29-May 0.66% 27-Jun 0.59% 27-Jul -3.04% 30-Apr 0.69% 30-May -0.90% 28-Jun 1.11% 30-Jul 1.35% 31-May 1.69% 29-Jun -0.16% 31-Jul 1.35% TOTAL -0.33% TOTAL 7.23% TOTAL 5.16% TOTAL 1.15% TOTAL 8.49% Avg. RETURNS -0.02% Avg.

RETURNS 0.36% Avg. RETURNS 0.25% Avg. RETURNS 0.05% Avg. RETURNS 0.40% 44 CALCULATION OF RETURNS ON MUTUAL FUND SCHEMES: Month Sensex Returns tata bal (Sm-mean) (Mm-mean) (Sm-Sm)* (Mm-Mm) (Sm-mean)* (Sm-mean) (Mm-mean)* (Mm-mean) March -0.14 0.02 -0.132 -0.1240 0.016368 0.0004 0.015376 April 0.14 -0.09 0.148 -0.2340 -0.034632 0.0081 0.054756 May 0.02 0.25 0.028 0.1060 0.002968 0.0625 0.011236 June -0.17 0.13 -0.162 -0.0140 0.002268 0.0169 0.000196 July 0.11 0.41 0.118 0.2660 0.031388 0.1681 0.070756 TOTAL -0.04 0.72 0.01836 0.256 0.030525 mean -0.008 0.144 BETA 0.01836/ 0.08028 ALPHA 0.1458296 0.2286996 Standard Deviation 0.030525 Month sensex returns PRU ICICI (Sm-mean) (Tm-mean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean) (Tmmean)*(tm-mean) March -0.14 0.25 -0.132 0.086 -0.011352 0.007396 0.007396 April 0.14 0.24 0.148 0.076 0.011248 0.005776 0.005776 May 0.02 0.21 0.028 0.046 0.001288 0.002116 0.002116 June -0.17 0.03 -0.162 -0.134 0.021708 0.017956 0.017956 July 0.11 0.09 0.118 -0.074 -0.008732 0.005476 0.005476 TOTAL -0.04 0.82 0.01416 MEAN -0.008 0.164 BETA 0.01416/ 0.08028 ALPHA 0.174 0.1654111 Standard Deviation 0.006 45 Month sensex returns MAG BAL (Sm-mean) (Mmmean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean) March -0.14 -0.04 -0.132 -0.186 -0.186 0.034596 April 0.14 0.32 0.148 0.174 0.174 0.030276 May 0.02 0.23 0.028 0.084 0.084 0.007056 June -0.17 0.08 -0.162 -0.066 -0.066 0.004356

July 0.11 0.14 0.118 -0.006 -0.006 0.013924 TOTAL -0.04 0.73 0.012 MEAN -0.008 0.146 BETA 0.012/ 0.08028 ALPHA 0.1522422 0.149476831 Standard Deviation 0.0137 Month sensex returns HDFC Pru (Smmean) (Mmmean) (Sm-Sm)*(TmTm) (Tm-mean)*(tmmean) March -0.14 -0.22 -0.132 -0.354 0.046728 0.125316 April 0.14 0.31 0.148 0.176 0.026048 0.030976 May 0.02 0.22 0.028 0.086 0.002408 0.007396 June -0.17 0.15 -0.162 0.016 -0.002592 0.000256 July 0.11 0.21 0.118 0.076 0.008968 0.005776 TOTAL -0.04 0.67 0.08156 46 MEAN -0.008 0.134 BETA 0.08156/ 0.08028 ALPHA 0.142127554 1.015944195 Standard Deviation 0.0524 Month sensex returns JM BAL (Sm-mean) (Mmmean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean) March -0.14 -0.02 -0.132 -0.228 0.030096 0.017424 April 0.14 0.36 0.148 0.152 0.022496 0.021904 May 0.02 0.25 0.028 0.042 0.001176 0.000784 June -0.17 0.05 -0.162 -0.158 0.025596 0.026244 July 0.11 0.4 0.118 0.192 0.022656 0.013924 TOTAL -0.04 1.04 0.10202 MEAN -0.008 0.208 BETA 0.10202/ 0.08028 ALPHA 0.218166418 1.270802192 Standard Deviation 0.0185 SCHEMES BETA ALPHA S.D. TATA 0.2286996 0.146 0.031 PRU ICICI 0.174 0.165 0.006 HDFC 1.314365517 0.142 0.0524 MAG BAL 0.132383266 0.152 0.0137 JM BAL 1.24 0.218 0.0185 INTERPRETATION: BETA: This indicates that HDFC Schemes in balance fund has given return with par with SENSEX. The highest volatility shown in balance fund is by JM Morgan Balance fund. And the least volatility is been shown by Magnum Balance Fund. Alpha: 47

Alpha of JM Morgan is the higgest, this indicate that with the given risk the fund has given good return. It indicate that JM Morgan strategy is that, it takes comparatively more risk but at the same time it gives good return. The less return is given by TATA Balance Fund. Standard Deviation: Standard Deviation indicate volatility in the performance. From the Balance Fund it indicates that HDFC has high volatility in its portfolio. Investors who do not want to take much risk normally go for Balanced Funds.in Balance Fund also investors who are risk averse can go for Pru ICICI as has less beta that is it is less volatile but at the same time it is giving good returns.

48 EQUITY FUND: DSP ML Equity Fund Reliance Vision Fund Magnum Multicap Fund Birla Midcap Fund Franklin India Opportunities Fund 49 CALCULATION OF RETURNS ON MUTUAL FUND SCHEMES: EQUITY DIVERSIFIED DSP ML Equity Fund DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETURN RETURN RETURN RETURN RETURN (%) (%) (%) (%) (%) 1-Mar 1.80% 2-Apr 1.63% 3-May 1.39% 1-Jun 0.81% 2-Jul 1.53% 2-Mar -1.69% 3-Apr 0.76% 4-May -0.57% 4-Jun -0.45% 3-Jul 0.86% 5-Mar -4.45% 4-Apr 1.23% 7-May -0.09% 5-Jun 0.59% 4-Jul 0.14% 6-Mar 1.26% 5-Apr 0.87% 8-May -0.74% 6-Jun -1.96% 5-Jul -0.41% 7-Mar -1.00% 9-Apr 1.81% 9-May 0.54% 7-Jun -0.20% 6-Jul 0.26% 8-Mar 2.34% 10-Apr 0.24% 10-May 0.57% 8-Jun -0.75% 9-Jul 0.74% 9-Mar -0.52% 11-Apr 0.32% 11-May 0.86% 11-Jun -0.12% 10-Jul -0.05% 12-Mar 0.57% 12-Apr 0.77% 14-May 2.00% 12-Jun 0.31% 11-Jul 0.49% 13-Mar 0.80% 13-Apr 1.40% 15-May 0.56% 13-Jun -0.58% 12-Jul 1.21% 14-Mar -1.98% 16-Apr 2.10% 16-May 1.53% 14-Jun 0.92% 13-Jul 0.44% 16-Mar -0.38% 17-Apr 0.10% 17-May 1.01% 15-Jun 0.14% 16-Jul 0.07% 19-Mar 1.27% 18-Apr 0.23% 18-May 0.10% 18-Jun -0.58% 17-Jul -0.93% 20-Mar 0.72% 19-Apr 0.12% 21-May 1.06% 19-Jun 1.18% 19-Jul 0.69% 21-Mar 0.65% 20-Apr 1.53% 22-May 0.27% 20-Jun 1.12% 20-Jul 0.01% 22-Mar 1.50% 23-Apr 0.13% 23-May -0.73% 21-Jun 1.19% 23-Jul 0.78% 23-Mar -0.19% 24-Apr 1.31% 24-May -0.93% 22-Jun -0.33% 24-Jul -0.23% 26-Mar -0.70% 25-Apr 0.53% 25-May 0.83% 25-Jun -0.08% 25-Jul -0.68% 28-Mar -1.31% 26-Apr 0.07% 28-May 0.94% 26-Jun 0.55% 26-Jul 0.54% 27-Apr -

1.48% 29-May 0.97% 27-Jun -0.34% 27-Jul -3.88% 30-Apr 0.96% 30-May -0.54% 28-Jun 0.44% 30-Jul 0.79% 31-May 0.72% 29-Jun 1.01% 31-Jul 1.46% TOTAL -1.31% TOTAL 9.03% TOTAL 9.75% TOTAL 2.87% TOTAL 3.83% Avg. RETURNS -0.07% Avg. RETURNS 0.45% Avg. RETURNS 0.46% Avg. RETURNS 0.14% Avg. RETURNS 0.18% 50 Reliance Vision Fund - (G) DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETURN RETURN RETURN RETURN RETURN (%) (%) (%) (%) (%) 1-Mar 1.25% 2-Apr 2.36% 3-May 1.94% 1-Jun 0.54% 2-Jul 0.85% 2-Mar -2.32% 3-Apr 1.09% 4-May -0.21% 4-Jun -0.93% 3-Jul 0.50% 5-Mar -4.74% 4-Apr 0.84% 7-May -0.34% 5-Jun -0.18% 4-Jul 0.62% 6-Mar 1.31% 5-Apr 0.87% 8-May -0.78% 6-Jun -1.18% 5-Jul -0.18% 7-Mar -0.97% 9-Apr 2.30% 9-May 0.42% 7-Jun -0.12% 6-Jul 0.70% 8-Mar 3.96% 10-Apr 0.48% 10-May 0.01% 8-Jun -0.70% 9-Jul 1.19% 9-Mar -1.29% 11-Apr 0.15% 11-May 0.80% 11-Jun 0.22% 10-Jul -0.55% 12-Mar 0.17% 12-Apr 0.06% 14-May 1.00% 12-Jun -0.27% 11-Jul -0.19% 13-Mar 1.10% 13-Apr 1.98% 15-May 0.21% 13-Jun -0.55% 12-Jul 1.78% 14-Mar -2.52% 16-Apr 1.28% 16-May 1.04% 14-Jun 1.29% 13-Jul 0.39% 16-Mar -0.66% 17-Apr 0.83% 17-May 1.34% 15-Jun 0.13% 16-Jul 0.39% 19-Mar 1.52% 18-Apr 0.35% 18-May -0.26% 18-Jun 0.24% 17-Jul -0.71% 20-Mar 0.77% 19-Apr 0.11% 21-May 0.63% 19-Jun 1.68% 19-Jul 1.49% 21-Mar 0.67% 20-Apr 1.32% 22-May 0.74% 20-Jun 1.27% 20-Jul 0.02% 22-Mar 2.14% 23-Apr 0.23% 23-May -0.84% 21-Jun 0.45% 23-Jul 0.49% 23-Mar -0.03% 24-Apr 1.02% 24-May 0.31% 22-Jun 0.07% 24-Jul 0.02% 26-Mar -1.11% 25-Apr 0.68% 25-May 0.32% 25-Jun 0.39% 25-Jul -0.79% 28-Mar -1.52% 26-Apr 0.69% 28-May 0.72% 26-Jun 0.18% 26-Jul 0.36% 27-Apr 1.41% 29-May 0.96% 27-Jun -0.27% 27-Jul -2.42% 30-Apr 1.00% 30-May -0.52% 28-Jun 0.70% 30-Jul 0.19% 31-May 1.02% 29-Jun 0.71% 31-Jul 1.54% TOTAL -2.27% TOTAL 9.73% TOTAL 8.51% TOTAL 3.67% TOTAL 5.69% Avg.

RETURNS -0.13% Avg. RETURNS 0.49% Avg. RETURNS 0.41% Avg. RETURNS 0.17% Avg. RETURNS 0.27% 51 Magnum Multicap Fund (G) DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETUR N RETURN RETUR N RETUR N RETUR N (%) (%) (%) (%) (%) 1-Mar 0.62% 2-Apr -2.65% 3-May 1.04% 1-Jun 0.81% 2-Jul 1.11% 2-Mar -1.65% 3-Apr 0.64% 4-May -0.38% 4-Jun -1.05% 3-Jul 0.86% 5-Mar -4.13% 4-Apr 1.07% 7-May -0.84% 5-Jun 0.44% 4-Jul -0.06% 6-Mar 1.46% 5-Apr 1.20% 8-May -1.30% 6-Jun -1.75% 5-Jul 0.18% 7-Mar -1.15% 9-Apr 1.88% 9-May -0.20% 7-Jun -0.57% 6-Jul 0.91% 8-Mar 3.50% 10-Apr 0.20% 10-May -0.59% 8-Jun -0.83% 9-Jul 0.72% 9-Mar -1.20% 11-Apr 0.20% 11-May 0.26% 11-Jun -0.32% 10-Jul -0.36% 12-Mar 0.57% 12-Apr -0.82% 14-May 1.72% 12-Jun -0.19% 11-Jul -0.12% 13-Mar 0.92% 13-Apr 1.58% 15-May 0.00% 13-Jun -0.58% 12-Jul 1.38% 14-Mar -2.11% 16-Apr 2.56% 16-May 1.23% 14-Jun 1.37% 13-Jul 1.12% 16-Mar -1.15% 17-Apr -0.85% 17-May 0.64% 15-Jun 0.39% 16-Jul -0.41% 19-Mar 1.45% 18-Apr 0.20% 18-May 0.00% 18-Jun -0.32% 17-Jul -0.70% 20-Mar 1.14% 19-Apr -0.73% 21-May 0.89% 19-Jun 1.22% 19-Jul 1.12% 21-Mar 1.13% 20-Apr 1.13% 22-May 0.25% 20-Jun 1.20% 20-Jul 0.64% 22-Mar 2.24% 23-Apr 0.40% 23-May -0.50% 21-Jun 0.63% 23-Jul 0.87% 23-Mar 0.14% 24-Apr 2.04% 24-May -0.89% 22-Jun -0.44% 24-Jul 0.12% 26-Mar -0.68% 25-Apr 0.84% 25-May 0.45% 25-Jun -0.06% 25-Jul -0.86% 28-Mar -1.24% 26-Apr -0.26% 28-May 1.72% 26-Jun 0.44% 26-Jul 0.70% 27-Apr -1.47% 29-May 0.69% 27-Jun -0.75% 27-Jul -3.40% 30-Apr 0.32% 30-May -1.61% 28-Jun 0.19% 30-Jul 0.00% 31-May 1.07% 29-Jun 1.25% 31-Jul 2.09% TOTAL -0.14% TOTAL 7.48% TOTAL 3.65% TOTAL 1.08% TOTAL 5.91% Avg. RETURN S -0.01% Avg. RETURN S 0.37% Avg.

RETURN S 0.17% Avg. RETURN S 0.05% Avg. RETURN S 0.28% 52 Birla Midcap Fund (G) DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETURN RETURN RETURN RETURN RETURN (%) (%) (%) (%) (%) 1-Mar 0.21% 2-Apr -1.48% 3-May 0.51% 1-Jun -0.08% 2-Jul 1.24% 2-Mar -0.96% 3-Apr 0.52% 4-May 0.43% 4-Jun -0.70% 3-Jul 0.66% 5-Mar -4.75% 4-Apr 1.05% 7-May -0.29% 5-Jun 0.48% 4-Jul 0.98% 6-Mar 0.29% 5-Apr 0.64% 8-May -0.38% 6-Jun -0.84% 5-Jul -0.01% 7-Mar -1.49% 9-Apr 1.72% 9-May 0.24% 7-Jun -0.18% 6-Jul 0.30% 8-Mar 2.37% 10-Apr 1.14% 10-May 0.59% 8-Jun -0.49% 9-Jul 1.00% 9-Mar -0.61% 11-Apr 0.84% 11-May 1.33% 11-Jun -0.18% 10-Jul -0.63% 12-Mar 0.50% 12-Apr -0.26% 14-May 1.75% 12-Jun -0.61% 11-Jul 0.64% 13-Mar 0.87% 13-Apr 1.29% 15-May 0.37% 13-Jun -0.49% 12-Jul 1.47% 14-Mar -1.67% 16-Apr 1.66% 16-May 1.64% 14-Jun 1.19% 13-Jul 1.40% 16-Mar -0.57% 17-Apr 0.00% 17-May 0.27% 15-Jun 0.44% 16-Jul 1.10% 19-Mar 0.78% 18-Apr 0.36% 18-May 0.11% 18-Jun 0.07% 17-Jul -0.76% 20-Mar 0.82% 19-Apr 0.27% 21-May 1.31% 19-Jun 1.03% 19-Jul 0.91% 21-Mar 0.39% 20-Apr 0.49% 22-May 0.16% 20-Jun 1.69% 20-Jul -0.35% 22-Mar 1.29% 23-Apr -0.16% 23-May -0.48% 21-Jun 0.62% 23-Jul 0.55% 23-Mar 0.32% 24-Apr 1.66% 24-May -0.70% 22-Jun -0.40% 24-Jul -0.25% 26-Mar -0.52% 25-Apr 0.77% 25-May 0.47% 25-Jun 0.21% 25-Jul -0.85% 28-Mar -1.44% 26-Apr -0.32% 28-May 1.24% 26-Jun 0.26% 26-Jul 1.02% 27-Apr -0.68% 29-May 0.35% 27-Jun 0.00% 27-Jul -2.74% 30-Apr 0.88% 30-May -0.41% 28-Jun 0.66% 30-Jul 0.60% 31-May 1.11% 29-Jun 0.95% 31-Jul 1.44% TOTAL -4.17% TOTAL 10.39% TOTAL 9.62% TOTAL 3.63% TOTAL 7.72% Avg. RETURNS -0.23% Avg. RETURNS 0.52% Avg. RETURNS 0.46% Avg. RETURNS 0.17% Avg. RETURNS 0.37% 53 Franklin India Opportunities Fund - (G) DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETURN RETURN RETURN RETURN RETURN (%) (%) (%) (%) (%)

1-Mar 0.08% 2-Apr -1.31% 3-May 0.58% 1-Jun 0.22% 2-Jul 0.84% 2-Mar -1.25% 3-Apr 0.35% 4-May -0.22% 4-Jun -1.01% 3-Jul 1.25% 5-Mar -4.53% 4-Apr -0.17% 7-May -0.55% 5-Jun 0.27% 4-Jul 0.13% 6-Mar 0.98% 5-Apr 0.86% 8-May -0.78% 6-Jun -2.11% 5-Jul -0.56% 7-Mar -2.63% 9-Apr 2.13% 9-May 0.27% 7-Jun -0.59% 6-Jul 0.57% 8-Mar 4.33% 10-Apr 1.23% 10-May 0.03% 8-Jun -0.29% 9-Jul 0.43% 9-Mar -0.86% 11-Apr 0.20% 11-May 0.69% 11-Jun -0.09% 10-Jul -0.12% 12-Mar 1.74% 12-Apr 0.70% 14-May 1.30% 12-Jun -0.29% 11-Jul 0.33% 13-Mar 1.41% 13-Apr 1.43% 15-May 0.01% 13-Jun -0.25% 12-Jul 1.67% 14-Mar -1.65% 16-Apr 1.56% 16-May 1.72% 14-Jun 2.07% 13-Jul 0.80% 16-Mar -0.52% 17-Apr -1.12% 17-May 1.03% 15-Jun -0.18% 16-Jul 0.63% 19-Mar 0.95% 18-Apr 0.33% 18-May -0.34% 18-Jun -0.01% 17-Jul -1.56% 20-Mar 1.07% 19-Apr -0.16% 21-May 1.08% 19-Jun 1.24% 19-Jul 0.32% 21-Mar 1.02% 20-Apr 1.37% 22-May 0.67% 20-Jun 1.09% 20-Jul -0.34% 22-Mar 1.17% 23-Apr -0.09% 23-May -0.79% 21-Jun 0.34% 23-Jul 1.04% 23-Mar 0.21% 24-Apr 0.65% 24-May 0.05% 22-Jun 0.55% 24-Jul -0.46% 26-Mar -0.74% 25-Apr 1.65% 25-May 0.18% 25-Jun 0.47% 25-Jul -0.64% 28-Mar -1.37% 26-Apr 0.12% 28-May 1.92% 26-Jun 0.88% 26-Jul 1.04% 27-Apr -1.42% 29-May 1.06% 27-Jun -0.53% 27-Jul -4.39% 30-Apr -0.04% 30-May -0.56% 28-Jun 0.74% 30-Jul 0.54% 31-May 0.64% 29-Jun 0.37% 31-Jul 1.68% TOTAL -0.59% TOTAL 8.27% TOTAL 7.99% TOTAL 2.89% TOTAL 3.20% Avg. RETURNS -0.03% Avg. RETURNS 0.41% Avg. RETURNS 0.73% Avg. RETURNS 0.14% Avg. RETURNS 0.15% 54 EQUITY DIVERSIFIED BETA 0.08728/ 0.08028 ALPHA 0.241 1.087194818 Standard Deviation 0.036 Month sensex returns Rel VIS (Smmean) (Rmmean) (Sm-Sm)*(TmTm) (Tm-mean)*(tmmean) March -0.14 -0.13 -0.132 -0.372 0.049104 0.138384 April 0.14 0.49 0.148 0.248 0.036704 0.061504 May 0.02 0.41 0.028 0.168 0.004704 0.028224 June -0.17 0.17 -0.162 -0.072 0.011664 0.005184 July 0.11 0.27 0.118 0.028 0.003304 0.000784 Month

sensex returns DSP ML Eq (Smmean) (Dmmean) (SmSm)*(TmTm) (Sm-mean)*(Smmean) (Tm-mean)*(tmmean) March -0.14 -0.07 -0.132 -0.302 0.039864 0.017424 0.091204 April 0.14 0.45 0.148 0.218 0.032264 0.021904 0.047524 May 0.02 0.46 0.028 0.228 0.006384 0.000784 0.051984 June -0.17 0.14 -0.162 -0.092 0.014904 0.026244 0.008464 July 0.11 0.18 0.118 -0.052 -0.006136 0.013924 0.002704 TOTAL -0.04 1.16 0.08728 MEAN -0.008 0.232 55 TOTAL -0.04 1.21 0.10548 MEAN -0.008 0.242 BETA 0.10548/0.08028 ALPHA 0.2525 1.313901345 Standard Deviation 0.057 Month sensex returns Mag Mul (Sm-mean) (Mmmean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean) March -0.14 -0.01 -0.132 -0.182 0.024024 0.033124 April 0.14 0.37 0.148 0.198 0.029304 0.039204 May 0.02 0.17 0.028 -0.002 -0.000056 0.00 June -0.17 0.05 -0.162 -0.122 0.019764 0.014884 July 0.11 0.28 0.118 0.108 0.012744 0.011664 0.016095686 TOTAL -0.04 0.86 0.18466 MEAN -0.008 0.172 BETA 0.08578/ 0.08028 ALPHA 0.181 1.068510214 Standard Deviation 0.0161 Month sensex returns Birla Mid (Smmean) (Bmmean) (Sm-Sm)*(TmTm) (Tm-mean)*(tmmean) March -0.14 -0.23 -0.132 -0.488 0.064416 0.017424 56 April 0.14 0.52 0.148 0.262 0.038776 0.021904

May 0.02 0.46 0.028 0.202 0.005656 0.000784 June -0.17 0.17 -0.162 -0.088 0.014256 0.026244 July 0.11 0.37 0.118 0.112 0.013216 0.013924 TOTAL -0.04 1.29 0.13632 MEAN -0.008 0.258 BETA 0.13632/0.08028 ALPHA 0.272 1.698056801 Standard Deviation 0.0952 Month sensex returns Fran Ind Opp (Smmean) (Bmmean) (Sm-Sm)*(TmTm) (Tm-mean)*(tmmean) March -0.14 -0.03 -0.132 -0.31 0.04092 0.0961 April 0.14 0.41 0.148 0.13 0.01924 0.0169 May 0.02 0.73 0.028 0.45 0.0126 0.2025 June -0.17 0.14 -0.162 -0.14 0.02268 0.0196 July 0.11 0.15 0.118 -0.13 -0.01534 0.0169 TOTAL -0.04 1.4 0.0801 MEAN -0.008 0.28 BETA 0.0801/0.08028 ALPHA 0.288 0.997757848 Standard Deviation 0.087 SCHEMES BETA ALPHA S.D. DSP ML Eq 1.09 0.241 0.036 Rel VIS 1.31 0.252 0.057 Mag Mul 1.07 0.181 0.016 Birla Mid 1.698 0.272 0.095 Fran Ind Opp 0.998 0.288 0.087 57 INTERPRETATION BETA: Beta of Birla Midcap Equity Scheme is the highest, this indicate that the risk profile of Birla Mutual Fund for Equity schemes is more. In equity schemes all the above mention schemes have shown volatility as compared to SENSEX. But Franklin India Opportunies Fund has shown less volatility as compared to other Equity Mutual Fund. ALPHA: The highest return is given by Franklin India Opportunies Fund. But the risk taken by this fund is less. Magnum Multicap fund has shown volatility at par with SENSEX but among the Equity Schemes this fund has given less returns. STANDARD DEVIATION: Birla and Franklin Equity Mutual Fund has shown more deviation in its Movement. Therefore these fund has shown more volatility in its performance. For investors who invest in Equity Fund for getting more returns as compared to other schemes, thereofore in order to get more returns they have to take more risks.

Investors who donot want to take risk but want to get more returns can go for Franklin India Opportunies Fund GILT FUND: DSP ML G-SEC FUND 58 MAGNUM GILT FUND(SHORT TERM) HDFC GILT LONG TERM PLAN PRU ICICI GILT FUND(INVESTMENT) BIRLA GILT PLUS REGULAR FUND CALCULATION OF RETURNS ON MUTUAL FUND SCHEMES: DSP ML G-Sec Fund A DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETURN RETURN RETURN RETURN RETURN (%) (%) (%) (%) (%) 1-Mar 0.26% 2-Apr -0.95% 3-May 0.13% 1-Jun 0.09% 2-Jul 0.64% 2-Mar -0.05% 3-Apr 0.08% 4-May -0.05% 4-Jun 0.04% 3-Jul 0.42% 5-Mar 0.02% 4-Apr -0.12% 7-May 0.14 5-Jun -0.10% 4-Jul 0.15% 6-Mar -0.01% 5-Apr 0.48% 8-May 0.20% 6-Jun -0.20% 5-Jul -0.03% 7-Mar 0.04% 9-Apr 0.33% 9-May 0.17% 7-Jun 0.16% 6-Jul 0.40% 8-Mar -0.21% 10-Apr -0.01% 10-May -0.23% 8-Jun -0.18% 9-Jul -0.05% 9-Mar 0.05% 11-Apr -0.04% 11-May -0.22% 11-Jun -0.50% 10-Jul 0.03% 12-Mar 0.35% 12-Apr -0.18% 14-May 0.13% 12-Jun 0.01% 11-Jul 0.06% 13-Mar -0.11% 13-Apr -0.05% 15-May 0.18% 13-Jun -0.10% 12-Jul 0.01% 14-Mar -0.06% 16-Apr 0.08% 16-May 0.08% 14-Jun 0.32% 13-Jul 0.19% 16-Mar -0.29% 17-Apr 0.20% 17-May -0.03% 15-Jun 0.29% 16-Jul 0.45% 19-Mar 0.06% 18-Apr 0.01% 18-May -0.16% 18-Jun 0.35% 17-Jul 0.21% 20-Mar -0.25% 19-Apr 0.07% 21-May 0.36% 19-Jun -0.10% 19-Jul 0.12% 21-Mar 0.21% 20-Apr -0.17% 22-May 0.02% 20-Jun -0.10% 20-Jul 0.37% 22-Mar 0.51% 23-Apr 0.60% 23-May -0.14% 21-Jun 0.00% 23-Jul -0.09% 23-Mar 0.04% 24-Apr 0.09% 24-May -0.08% 22-Jun -0.01% 24-Jul -0.19% 26-Mar -0.20% 25-Apr -0.36% 25-May 0.15% 25-Jun 0.30% 25-Jul 0.06% 28-Mar 0.12% 26-Apr -0.37% 28-May 0.40% 26-Jun -0.22% 26-Jul -0.15% 27-Apr -0.05% 29-May -0.09% 27-Jun -0.14% 27-Jul 0.30% 30-Apr 30-May -0.02% 28-Jun 0.25% 30-Jul -0.58% 31-May 0.18% 29-Jun 0.05% 31-Jul TOTAL 0.48% TOTAL -0.36% TOTAL 14.98% TOTAL 0.21% TOTAL 2.32% Avg. RETURNS 0.03% Avg. RETURNS -0.02% Avg. RETURNS 0.71% Avg. RETURNS 0.01% Avg. RETURNS 0.12% 59 Magnum Gilt Fund - Short Term DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%) 1-Mar 0.00% 2-Apr 0.07% 3-May 0.07% 1-Jun 0.07% 2-Jul 0.07% 2-Mar 0.02% 3-Apr 0.02% 4-May 0.02% 4-Jun 0.09% 3-Jul 0.07% 5-Mar 0.06% 4-Apr 0.02% 7-May 0.07% 5-Jun 0.03% 4-Jul 0.10% 6-Mar 0.02% 5-Apr 0.02% 8-May 0.02% 6-Jun 0.03% 5-Jul 0.18% 7-Mar 0.02% 9-Apr 0.08% 9-May 0.02% 7-Jun 0.03% 6-Jul 0.16% 8-Mar 0.02% 10-Apr 0.02% 10-May 0.02% 8-Jun 0.03% 9-Jul 0.32% 9-Mar 0.02% 11-Apr 0.02% 11-May 0.02% 11-Jun 0.08% 10-Jul 0.02% 12-Mar 0.11% 12-Apr 0.02% 14-May 0.07% 12-Jun 0.03% 11-Jul 0.02% 13-Mar 0.02% 13-Apr 0.02% 15-May 0.02% 13-Jun 0.03% 12-Jul 0.02% 14-Mar 0.02% 16-Apr 0.07% 16-May 0.02% 14-Jun 0.03% 13-Jul 0.02% 16-Mar 0.04% 17-Apr 0.02% 17-May 0.04% 15-Jun 0.03% 16-Jul 0.07% 19-Mar 0.07% 18-Apr 0.02% 18-May 0.04% 18-Jun 0.08% 17-Jul 0.02% 20-Mar 0.02% 19-Apr 0.02% 21-May 0.09% 19-Jun 0.03% 19-Jul 0.05% 21-Mar 0.02% 20-Apr 0.03% 22-May 0.04% 20-Jun 0.03% 20-Jul 0.01% 22-Mar 0.02% 23-Apr 0.08% 23-May 0.04% 21-Jun 0.03% 23-Jul 0.18% 23-Mar 0.02% 24-Apr 0.02% 24-May 0.04% 22-Jun 0.03% 24-Jul 0.02% 26-Mar 0.07% 25-Apr 0.02% 25-May 0.04% 25-Jun 0.08% 25-Jul 0.02% 28-Mar 0.04% 26-Apr 0.02% 28-May 0.20% 26-Jun 0.03% 26-Jul 0.02% 27-Apr 0.02% 29-May 0.02% 27-Jun 0.03% 27-Jul 0.01% 30-Apr 0.07% 30-May 0.02% 28-Jun 0.09% 30-Jul 0.04% 31-May 0.03% 29-Jun 0.03% 31-Jul 0.01% TOTAL 0.61% TOTAL 0.68% TOTAL 0.95% TOTAL 0.94% TOTAL 1.43% Avg. RETURNS 0.03% Avg. RETURNS 0.03% Avg. RETURNS 0.05% Avg. RETURNS 0.04% Avg. RETURNS 0.07% 60 HDFC Gilt Fund Long Term Plan DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETURN RETURN RETURN RETURN RETURN (%) (%) (%) (%) (%) 1-Mar 0.26% 2-Apr 0.06% 3-May 0.13% 1-Jun 0.06% 2-Jul 0.19% 2-Mar -0.06% 3-Apr -0.90% 4-May -0.03% 4-Jun -0.01% 3-Jul 0.03% 5-Mar -0.02% 4-Apr 0.09% 7-May 0.10% 5-Jun -0.07% 4-Jul 0.16% 6-Mar 0.09% 5-Apr -0.18% 8-May 0.16% 6-Jun -0.21% 5-Jul 0.17% 7-Mar 0.08% 9-Apr 0.37% 9-May 0.12% 7-Jun 0.16% 6-Jul -0.09% 8-Mar -0.33% 10-Apr 0.39% 10-May -0.23% 8-Jun -0.25% 9-Jul 0.29% 9-Mar -0.02% 11-Apr -0.14% 11-May 0.00% 11-Jun -0.92% 10-Jul -0.07% 12-Mar 0.34% 12-Apr -0.11% 14-May 0.15% 12-Jun 0.03% 11-Jul -0.03% 13-Mar -0.12% 13-Apr -0.10% 15-May 0.15% 13-Jun -0.17% 12-Jul 0.04% 14-Mar -0.06% 16-Apr -0.06% 16-May 0.08% 14-Jun 0.58% 13-Jul -0.02% 16-Mar -0.30% 17-Apr 0.13% 17-May -0.03% 15-Jun 0.34% 16-Jul 0.06% 19-Mar 0.06% 18-Apr 0.17% 18-May -0.06% 18-Jun 0.48% 17-Jul 0.12%

20-Mar -0.20% 19-Apr 0.08% 21-May 0.23% 19-Jun -0.10% 19-Jul 0.06% 21-Mar 0.10% 20-Apr 0.04% 22-May -0.05% 20-Jun -0.08% 20-Jul 0.12% 22-Mar 0.53% 23-Apr -0.08% 23-May -0.05% 21-Jun 0.06% 23-Jul 0.59% 23-Mar 0.04% 24-Apr 0.55% 24-May -0.02% 22-Jun 0.04% 24-Jul -0.20% 26-Mar -0.23% 25-Apr 0.03% 25-May 0.18% 25-Jun 0.07% 25-Jul -0.26% 28-Mar 0.13% 26-Apr -0.29% 28-May 0.38% 26-Jun -0.06% 26-Jul 0.12% 27-Apr -0.29% 29-May -0.06% 27-Jun -0.09% 27-Jul -0.26% 30-Apr -0.01% 30-May -0.04% 28-Jun 0.16% 30-Jul 0.30% 31-May 0.16% 29-Jun 0.02% 31-Jul -0.51% TOTAL 0.29% TOTAL -0.25% TOTAL 1.27% TOTAL 0.04% TOTAL 0.81% Avg. RETURNS 0.02% Avg. RETURNS -0.01% Avg. RETURNS 0.06% Avg. RETURNS 0.00% Avg. RETURNS 0.04% 61 Pru ICICI Gilt Fund (Investment) DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETURN RETURN RETURN RETURN RETURN (%) (%) (%) (%) (%) 1-Mar 0.04% 1-Mar 0.04% 3-May 0.09% 1-Jun -0.04% 2-Jul 0.31% 2-Mar -0.04% 2-Mar -0.09% 4-May -0.05% 4-Jun -0.05% 3-Jul 0.34% 5-Mar 0.02% 5-Mar 0.01% 7-May -0.05% 5-Jun -0.02% 4-Jul 0.11% 6-Mar 0.00% 6-Mar 0.22% 8-May 0.09% 6-Jun 0.01% 5-Jul 0.09% 7-Mar 0.02% 7-Mar 0.07% 9-May 0.02% 7-Jun 0.00% 6-Jul 0.47% 8-Mar 0.00% 8-Mar 0.01% 10-May -0.09% 8-Jun -0.09% 9-Jul 0.40% 9-Mar 0.03% 9-Mar 0.02% 11-May 0.01% 11-Jun 0.14% 10-Jul 0.04% 12-Mar 0.03% 12-Mar -0.04% 14-May 0.17% 12-Jun 0.10% 11-Jul 0.07% 13-Mar 0.00% 13-Mar 0.07% 15-May 0.06% 13-Jun -0.05% 12-Jul -0.08% 14-Mar -0.02% 14-Mar 0.06% 16-May 0.05% 14-Jun -0.05% 13-Jul 0.17% 16-Mar 0.05% 16-Mar 0.00% 17-May -0.04% 15-Jun 0.10% 16-Jul 0.34% 19-Mar 0.07% 19-Mar 0.08% 18-May 0.00% 18-Jun 0.24% 17-Jul 0.15% 20-Mar 0.08% 20-Mar 0.04% 21-May 0.08% 19-Jun -0.05% 19-Jul 0.14% 21-Mar 0.17% 21-Mar 0.08% 22-May -0.01% 20-Jun 0.01% 20-Jul 0.46% 22-Mar 0.03% 22-Mar 0.27% 23-May 0.05% 21-Jun 0.02% 23-Jul -0.17% 23-Mar -0.05% 23-Mar 0.07% 24-May -0.05% 22-Jun -0.01% 24-Jul -0.27% 26-Mar 0.07% 26-Mar -0.17% 25-May 0.11% 25-Jun -0.04% 25-Jul 0.14% 28-Mar 28-Mar -0.07% 28-May 0.15% 26-Jun 0.06% 26-Jul -0.28% 30-Apr -0.03% 29-May -0.05% 27-Jun -0.12% 27-Jul 0.53% 30-May -0.06% 28-Jun 0.13% 30-Jul -0.49% 31-May 0.10% 29-Jun -0.02% 31-Jul TOTAL 0.50% TOTAL 0.64% TOTAL 0.58% TOTAL 0.27% TOTAL 2.47% Avg. RETURNS 0.03% Avg.

RETURNS 0.03% Avg. RETURNS 0.03% Avg. RETURNS 0.01% Avg. RETURNS 0.12% 62 Birla Gilt Plus - Regular DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETURN RETURN RETURN RETURN RETURN (%) (%) (%) (%) (%) 1-Mar 0.04% 2-Apr 0.00% 3-May 0.08% 1-Jun 0.00% 2-Jul 0.29% 2-Mar -0.03% 3-Apr -0.01% 4-May 0.01% 4-Jun -0.04% 3-Jul 0.07% 5-Mar -0.03% 4-Apr 0.02% 7-May 0.06% 5-Jun 0.04% 4-Jul 0.47% 6-Mar 0.10% 5-Apr 0.01% 8-May 0.05% 6-Jun -0.19% 5-Jul 0.39% 7-Mar 0.01% 9-Apr 0.11% 9-May 0.03% 7-Jun 0.12% 6-Jul 0.03% 8-Mar -0.15% 10-Apr 0.03% 10-May -0.03% 8-Jun -0.19% 9-Jul 0.54% 9-Mar -0.01% 11-Apr -0.03% 11-May -0.01% 11-Jun -0.09% 10-Jul -0.03% 12-Mar 0.08% 12-Apr -0.02% 14-May 0.12% 12-Jun -0.01% 11-Jul -0.04% 13-Mar -0.02% 13-Apr 0.02% 15-May 0.15% 13-Jun -0.03% 12-Jul 0.10% 14-Mar 0.02% 16-Apr 0.03% 16-May 0.07% 14-Jun 0.04% 13-Jul -0.08% 16-Mar 0.00% 17-Apr 0.07% 17-May -0.05% 15-Jun 0.05% 16-Jul 0.15% 19-Mar 0.05% 18-Apr 0.02% 18-May -0.10% 18-Jun 0.12% 17-Jul 0.33% 20-Mar -0.05% 19-Apr 0.09% 21-May 0.23% 19-Jun -0.05% 19-Jul 0.05% 21-Mar 0.03% 20-Apr 0.03% 22-May -0.04% 20-Jun -0.02% 20-Jul 0.12% 22-Mar 0.13% 23-Apr 0.04% 23-May 0.00% 21-Jun 0.03% 23-Jul 0.51% 23-Mar 0.02% 24-Apr 0.75% 24-May -0.02% 22-Jun 0.00% 24-Jul -0.13% 26-Mar 0.02% 25-Apr 0.08% 25-May 0.05% 25-Jun 0.12% 25-Jul -0.11% 28-Mar 0.04% 26-Apr -0.26% 28-May 0.07% 26-Jun -0.10% 26-Jul 0.16% 30-Mar 0.03% 27-Apr -0.17% 29-May -0.03% 27-Jun -0.10% 27-Jul -0.13% 30-Apr -0.04% 30-May -0.01% 28-Jun 0.22% 30-Jul 0.17% 31-May 0.04% 29-Jun 0.01% 31-Jul -0.04% TOTAL 0.28% TOTAL 0.77% TOTAL 0.67% TOTAL -0.07% TOTAL 2.82% Avg. RETURNS 0.01% Avg. RETURNS 0.04% Avg. RETURNS 0.03% Avg. RETURNS 0.00% Avg. RETURNS 0.13% 63 CALCULATION OF RETURNS ON MUTUAL FUND SCHEMES: Month sensex returns DSP ML (Smmean)

(Bmmean) (Sm-Sm)*(TmTm) (Tm-mean)*(tmmean) March -0.14 0.03 -0.132 -0.14 0.01848 0.0196 April 0.14 -0.02 0.148 -0.19 -0.02812 0.0361 May 0.02 0.71 0.028 0.54 0.01512 0.2916 June -0.17 0.01 -0.162 -0.16 0.02592 0.0256 July 0.11 0.12 0.118 -0.05 -0.0059 0.0025 TOTAL -0.04 0.85 0.0255 MEAN -0.008 0.17 BETA 0.0255/0.08028 ALPHA 0.1725 0.317638266 Standard Deviation 0.057 Month sensex returns Magnum (Sm-mean) (Bm-mean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean) March -0.14 0.03 -0.132 -0.014 0.001848 0.000196 April 0.14 0.03 0.148 -0.014 -0.002072 0.000196 May 0.02 0.05 0.028 0.006 0.000168 0.0000360 June -0.17 0.04 -0.162 -0.004 0.000648 0.000016 July 0.11 0.07 0.118 0.026 0.003068 0.000676 TOTAL -0.04 0.22 0.000592 MEAN -0.008 0.044 BETA 0.00059/ 0.08028 ALPHA 0.044 0.007349278 Standard Deviation 0.0027 64 Month sensex returns HDFC (Smmean) (Bmmean) (Sm-Sm)*(TmTm) (Tm-mean)*(tmmean) March -0.14 0.02 -0.132 -0.002 0.000264 0.000004 April 0.14 -0.01 0.148 -0.032 -0.004736 0.001024 May 0.02 0.06 0.028 0.038 0.001064 0.001444 June -0.17 0 -0.162 -0.022 0.003564 0.000484 July 0.11 0.04 0.118 0.018 0.002124 0.000324 TOTAL -0.04 0.11 0.00228 MEAN -0.008 0.022 BETA 0.00228/ 0.08028 ALPHA 0.022 0.028400598 Standard Deviation 0.00057 Month sensex returns Pru ICICI (Smmean) (Bmmean)

(Sm-Sm)*(TmTm) (Tm-mean)*(tmmean) March -0.14 0.03 -0.132 -0.014 0.001848 0.000196 April 0.14 0.03 0.148 -0.014 -0.002072 0.000196 May 0.02 0.03 0.028 -0.014 -0.000392 0.000196 June -0.17 0.01 -0.162 -0.034 0.005508 0.001156 July 0.11 0.12 0.118 0.076 0.008968 0.005776 TOTAL -0.04 0.22 0.01386 MEAN -0.008 0.044 BETA 0.01386/ 0.08028 ALPHA 0.045 0.17264574 Standard Deviation 0.0024 Month sensex returns Birla (Sm-mean) (Bmmean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean) March -0.14 0.01 -0.132 -0.032 0.004224 0.001024 April 0.14 0.04 0.148 -0.002 -0.000296 0.000004 May 0.02 0.03 0.028 -0.012 -0.000336 0.000144 65 June -0.17 0 -0.162 -0.042 0.006804 0.001764 July 0.11 0.13 0.118 0.088 0.010384 0.007744 TOTAL -0.04 0.21 0.02078 MEAN -0.008 0.042 BETA 0.02078/ 0.08028 ALPHA 0.044 0.25884405 Standard Deviation 0.0032 SCHEMES BETA ALPHA S.D. DSPML G-SEC FUND 0.318 0.173 0.057 MAGNUM GILT FUND 0.007 0.044 0.0027 HDFC GILT FUND 0.028 0.022 0.00057 PRU ICICI GILT FUND 0.173 0.045 0.0024 BIRLA GILT PLUS 0.259 0.044 0.0032 INTERPRETATION BETA: Beta of DSP ML G-Sec Fund is the highest, which indicate that volatility in this specific schemes is more as compared to other fund. But at the same time Magnum Gilt Fund and HDFC Gilt Fund has shown less risky investments. ALPHA: Returns on HDFC Gilt Fund is less but it has shown volatility also.But DSP ML G-Sec Fund has taken risk but at the same time it has generated positive returns. STANDARD DEVIATION: DSP ML G-Sec has shown more deviation as compared to other G-sec funds. 66 CALCULATION OF RETURNS ON MUTUAL FUND SCHEMES: HDFC LIQUID FUND PRU ICICI LIQUID

MAGNUM INSTACASH TEMPLETON INDIA LIQUID PLUS JM BASIC FUND 67 HDFC Liquid Fund HDFC Liquid Fund DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETUR N RETUR N RETUR N RETUR N RETUR N (%) (%) (%) (%) (%) 2-Apr 0.13% 1-Mar 0.00% 2-May 0.07% 1-Jun 0.07% 2-Jul 0.07% 3-Apr 0.03% 2-Mar 0.02% 3-May 0.02% 3-Jun 0.03% 3-Jul 0.02% 4-Apr 0.03% 4-Mar 0.04% 4-May 0.02% 4-Jun 0.01% 4-Jul 0.02% 5-Apr 0.03% 5-Mar 0.02% 6-May 0.05% 5-Jun 0.01% 5-Jul 0.02% 6-Apr 0.02% 6-Mar 0.02% 7-May 0.02% 6-Jun 0.01% 6-Jul 0.02% 8-Apr 0.05% 7-Mar 0.02% 8-May 0.02% 7-Jun 0.01% 8-Jul 0.04% 9-Apr 0.02% 8-Mar 0.02% 9-May 0.02% 8-Jun 0.01% 9-Jul 0.02% 10-Apr 0.02% 9-Mar 0.02% 10-May 0.02% 11-Jun 0.03% 10-Jul 0.02% 11-Apr 0.02% 11-Mar 0.04% 11-May 0.02% 12-Jun 0.01% 11-Jul 0.02% 12-Apr 0.02% 12-Mar 0.02% 13-May 0.05% 13-Jun 0.02% 12-Jul 0.02% 13-Apr 0.02% 13-Mar 0.02% 14-May 0.03% 14-Jun 0.02% 13-Jul 0.02% 15-Apr 0.05% 14-Mar 0.02% 15-May 0.02% 15-Jun 0.02% 15-Jul 0.04% 16-Apr 0.02% 16-Mar 0.05% 16-May 0.02% 17-Apr 0.02% 16-Jul 0.02% 17-Apr 0.02% 19-Mar 0.07% 17-May 0.03% 18-Jun 0.03% 17-Jul 0.02% 18-Apr 0.03% 20-Mar 0.03% 18-May 0.02% 19-Jun 0.02% 19-Jul 0.04% 19-Apr 0.02% 21-Mar 0.03% 20-May 0.05% 20-Jun 0.02% 20-Jul 0.02% 20-Apr 0.02% 22-Mar 0.03% 21-May 0.02% 21-Jun 0.02% 22-Jul 0.03% 22-Apr 0.05% 23-Mar 0.03% 22-May 0.02% 22-Jun 0.01% 23-Jul 0.02% 23-Apr 0.02% 25-Mar 0.05% 23-May 0.02% 24-Apr 0.02% 24-Jul 0.02% 24-Apr 0.02% 26-Mar 0.03% 24-May 0.02% 25-Jun 0.04% 25-Jul 0.02% 25-Apr 0.03% 27-Mar 0.03% 25-May 0.02% 26-Jun 0.02% 26-Jul 0.02% 26-Apr 0.02% 28-Mar 0.03% 27-May 0.05% 27-Jun 0.02% 27-Jul 0.02% 27-Apr 0.02% 28-May 0.02% 28-Jun 0.02% 29-Jul 0.03% 29-Apr 0.05% 29-May 0.02% 29-Jun 0.02% 30-Jul 0.02% 30-Apr 0.03% 30-May 0.02% 31-May 0.02% TOTAL 0.79% TOTAL 0.64% TOTAL 0.71% TOTAL 0.54% TOTAL 0.61% Avg. RETURNS 0.03% Avg. RETURNS 0.03% Avg.

RETURNS 0.03% Avg. RETURNS 0.02% Avg. RETURNS 0.03% 68 Pru ICICI Liquid DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETURN RETURN RETURN RETURN RETURN (%) (%) (%) (%) (%) 1-Mar 0.05% 2-Apr 0.16% 2-May 0.05% 1-Jun 0.05% 2-Jul 0.11% 2-Mar 0.02% 3-Apr 0.03% 3-May 0.02% 3-Jun 0.03% 3-Jul 0.02% 4-Mar 0.04% 4-Apr 0.03% 4-May 0.02% 4-Jun 0.02% 4-Jul 0.02% 5-Mar 0.02% 5-Apr 0.03% 6-May 0.05% 5-Jun 0.02% 5-Jul 0.02% 6-Mar 0.02% 6-Apr 0.03% 7-May 0.02% 6-Jun 0.02% 6-Jul 0.02% 7-Mar 0.02% 8-Apr 0.05% 8-May 0.02% 7-Jun 0.02% 8-Jul 0.04% 8-Mar 0.02% 9-Apr 0.02% 9-May 0.02% 8-Jun 0.01% 9-Jul 0.02% 9-Mar 0.02% 10-Apr 0.02% 10-May 0.02% 10-Jun 0.03% 10-Jul 0.02% 11-Mar 0.04% 11-Apr 0.02% 11-May 0.02% 11-Jun 0.01% 11-Jul 0.02% 12-Mar 0.02% 12-Apr 0.02% 13-May 0.05% 12-Jun 0.01% 12-Jul 0.02% 13-Mar 0.02% 13-Apr 0.02% 14-May 0.02% 13-Jun 0.01% 13-Jul 0.02% 14-Mar 0.02% 15-Apr 0.05% 15-May 0.02% 14-Jun 0.01% 15-Jul 0.03% 16-Mar 0.05% 16-Apr 0.02% 16-May 0.02% 15-Jun 0.01% 16-Jul 0.02% 19-Mar 0.07% 17-Apr 0.03% 17-May 0.02% 17-Apr 0.04% 17-Jul 0.02% 20-Mar 0.03% 18-Apr 0.03% 18-May 0.02% 18-Jun 0.02% 19-Jul 0.04% 21-Mar 0.03% 19-Apr 0.03% 20-May 0.05% 19-Jun 0.02% 20-Jul 0.02% 22-Mar 0.03% 20-Apr 0.03% 21-May 0.02% 20-Jun 0.02% 22-Jul 0.04% 23-Mar 0.03% 22-Apr 0.05% 22-May 0.02% 21-Jun 0.02% 23-Jul 0.02% 25-Mar 0.05% 23-Apr 0.03% 23-May 0.02% 22-Jun 0.02% 24-Jul 0.02% 26-Mar 0.03% 24-Apr 0.03% 24-May 0.02% 24-Apr 4.00% 25-Jul 0.02% 27-Mar 0.03% 25-Apr 0.02% 25-May 0.02% 25-Jun 0.02% 26-Jul 0.02% 28-Mar 0.03% 26-Apr 0.03% 27-May 0.05% 26-Jun 0.02% 27-Jul 0.02% 27-Apr 0.03% 28-May 0.02% 27-Jun 0.02% 29-Jul 0.03% 29-Apr 0.05% 29-May 0.02% 28-Jun 0.03% 30-Jul 0.02% 30-Apr 0.03% 30-May 0.02% 29-Jun 0.03% 0.01% 31-May 0.02% TOTAL 0.69% TOTAL 0.89% TOTAL 0.67% TOTAL 4.51% TOTAL 0.66% Avg. RETURNS 0.03% Avg. RETURNS 0.04% Avg. RETURNS 0.03% Avg. RETURNS 0.18% Avg. RETURNS 0.03% 69 Magnum InstaCash DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETUR N RETURN RETURN RETURN RETURN (%) (%) (%) (%) (%) 1-Mar 0.0599 2-Apr 0.06% 0.06% 1-May 1-Jun 0.00% 1-Jul 0.06% 2-Mar 0.0002 3-Apr 0.02% 0.02% 2-May 2-Jun 0.02% 2-Jul 0.02% 3-Mar 0.0002 4-Apr 0.03% 0.02% 3-May 3-Jun 0.02% 3-Jul 0.02% 4-Mar 0.0002 5-Apr 0.02% 0.02% 4-May 4-Jun 0.02% 4-Jul 0.02% 5-Mar 0.0002 6-Apr 0.02% 0.02% 5-May 5-Jun 0.02% 5-Jul 0.02% 6-Mar 0.0002 7-Apr 0.02% 0.02% 6-May 6-Jun 0.02% 6-Jul 0.02% 7-Mar 0.0002 8-Apr 0.02% 0.02% 7-May 7-Jun 0.02% 7-Jul 0.02% 8-Mar 0.0002 9-Apr 0.02% 0.02% 8-May 8-Jun 0.02% 8-Jul 0.02% 9-Mar 0.0002 10-Apr 0.02% 0.02% 9-May 9-Jun 0.02% 9-Jul 0.02% 10-Mar 0.0002 11-Apr 0.02% 0.02% 10-May 10-Jun 0.02% 10-Jul 0.01% 11-Mar 0.0002 12-Apr 0.02% 0.02% 11-May 11-Jun 0.02% 11-Jul 0.01% 12-Mar 0.0002 13-Apr 0.02% 0.02% 12-May 12-Jun 0.02% 12-Jul 0.02% 13-Mar 0.0002 14-Apr 0.02% 0.02% 13-May 13-Jun 0.02% 13-Jul 0.01% 14-Mar 0.0002 15-Apr 0.02% 0.02% 14-May 14-Jun 0.01% 14-Jul 0.01% 16-Mar 0.0005 16-Apr 0.02% 0.02% 15-May 15-Jun 0.01% 15-Jul 0.01% 17-Mar 0.0003 17-Apr 0.02% 0.02% 16-May 16-Jun 0.01% 16-Jul 0.02% 18-Mar 0.0002 18-Apr 0.02% 0.02% 17-May 17-Jun 0.01% 17-Jul 0.02% 19-Mar 0.0003 19-Apr 0.02% 0.02% 18-May 18-Jun 0.02% 19-Jul 0.03% 20-Mar 0.0003 20-Apr 0.02% 0.02% 19-May 19-Jun 0.02% 20-Jul 0.01% 21-Mar 0.0003 21-Apr 0.02% 0.02% 20-May 20-Jun 0.02% 22-Jul 0.02% 22-Mar 0.0002 22-Apr 0.03% 0.02% 21-May 21-Jun 0.02% 23-Jul 0.01% 23-Mar 0.0003 23-Apr 0.02% 0.02% 22-May 22-Jun 0.02% 24-Jul 0.01% 24Mar 0.0003 24-Apr 0.02% 0.02% 23-May 23-Jun 0.02% 25-Jul 0.01% 25-Mar 0.0003 25-Apr 0.02% 0.02% 24-May 24-Jun 0.02% 26-Jul 0.01% 26-Mar 0.0003 26-Apr 0.02% 0.02% 25-May 25-Jun 0.02% 27-Jul 0.01% 27-Mar 0.0003 27-Apr 0.02% 0.02% 26-May 26-Jun 0.02% 28-Jul 0.01% 28-Mar 0.0003 28-Apr 0.02% 0.02% 27-May 27-Jun 0.02% 29-Jul 0.01% 31-Mar 0.001 29-Apr 0.02% 0.02% 28-May 28-Jun 0.02% 30-Jul 0.01% 30-Apr 0.02% 0.02% 29-May 29-Jun 0.02% 31-Jul 0.01% 0.02% 30-May 0.02% 31-May TOTAL 0.0674 TOTAL 0.62% TOTAL 0.66% TOTAL 0.52% TOTAL 0.48% Avg. RETURNS 0.002407 Avg. RETURNS 0.000221 1 Avg. RETURNS 0.000212 9 Avg. RETURNS 0.000185 7 Avg.

RETURNS 0.000164 8 70 Templeton India Liquid Plus DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETUR N RETURN RETURN RETURN RETUR N (%) (%) (%) (%) (%) 1-Mar 0.00% 2-Apr 0.073 2-May 0.073 1-Jun 0.073 2-Jul 0.00% 2-Mar 0.02% 3-Apr 0.00% 3-May 0.02% 3-Jun 0.04% 3-Jul 0.02% 4-Mar 0.04% 4-Apr 0.02% 4-May 0.02% 4-Jun 0.02% 4-Jul 0.02% 5-Mar 0.02% 5-Apr 0.02% 6-May 0.04% 5-Jun 0.02% 5-Jul 0.06% 6-Mar 0.02% 6-Apr 0.02% 7-May 0.02% 6-Jun 0.02% 6-Jul 0.01% 7-Mar 0.02% 8-Apr 0.04% 8-May 0.02% 7-Jun 0.02% 8-Jul 0.03% 8-Mar 0.02% 9-Apr 0.02% 9-May 0.02% 8-Jun 0.02% 9-Jul 0.01% 9-Mar 0.02% 10-Apr 0.02% 10-May 0.03% 10-Jun 0.03% 10-Jul 0.01% 11-Mar 0.04% 11-Apr 0.02% 11-May 0.02% 11-Jun 0.01% 11-Jul 0.01% 12-Mar 0.02% 12-Apr 0.02% 13-May 0.04% 12-Jun 0.01% 12-Jul 0.01% 13-Mar 0.02% 13-Apr 0.02% 14-May 0.02% 13-Jun 0.01% 13-Jul 0.01% 14-Mar 0.02% 15-Apr 0.04% 15-May 0.02% 14-Jun 0.02% 15-Jul 0.02% 16-Mar 0.04% 16-Apr 0.02% 16-May 0.02% 15-Jun 0.02% 16-Jul 0.01% 19-Mar 0.06% 17-Apr 0.03% 17-May 0.02% 17-Jun 0.03% 17-Jul 0.01% 20-Mar 0.02% 18-Apr 0.03% 18-May 0.02% 18-Jun 0.02% 19-Jul 0.03% 21-Mar 0.04% 19-Apr 0.02% 20-May 0.04% 19-Jun 0.02% 20-Jul 0.01% 22-Mar 0.03% 20-Apr 0.03% 21-May 0.02% 20-Jun 0.01% 22-Jul 0.03% 23-Mar 0.01% 22-Apr 0.04% 22-May 0.02% 21-Jun 0.07% 23-Jul 0.01% 25-Mar 0.06% 23-Apr 0.02% 23-May 0.02% 22-Jun 0.01% 24-Jul 0.01% 26-Mar 0.02% 24-Apr 0.02% 24-May 0.02% 24-Jun 0.02% 25-Jul 0.01% 27-Mar 0.02% 25-Apr 0.02% 25-May 0.02% 25-Jun 0.01% 26-Jul 0.01% 28-Mar 0.01% 26-Apr 0.02% 27-May 0.04% 26-Jun 0.03% 27-Jul 0.01% 27-Apr 0.02% 28-May 0.02% 27-Jun 0.02% 29-Jul 0.03% 29-Apr 0.04% 29-May 0.03% 28-Jun 0.02% 30-Jul 0.01% 30-Apr 0.02% 30-May 0.02% 29-Jun 0.02% 31-Jul 0.01% 31-May 0.02% TOTAL 0.49% TOTAL 0.0057 TOTAL 0.079 TOTAL 0.0782 TOTAL 0.40% Avg. RETURNS 0.03% Avg. RETURNS 0.0031 5 Avg. RETURNS 0.0030 4 Avg. RETURNS

0.0031 3 Avg. RETURNS 0.0002 71 DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETURN RETURN RETURN RETURN RETURN (%) (%) (%) (%) (%) 1-Mar 0.70% 2-Apr -2.34% 2-May 1.21 1-Jun 0.56% 2-Jul 1.15% 2-Mar -1.61% 3-Apr 1.45% 3-May -0.53% 3-Jun -1.57% 3-Jul 2.05% 4-Mar -4.31% 4-Apr 1.43% 4-May 0.10% 4-Jun 0.34% 4-Jul 0.41% 5-Mar 0.06% 5-Apr 1.08% 6-May -1.15% 5-Jun -0.98% 5-Jul -0.21% 6-Mar -0.74% 6-Apr 2.25% 7-May 0.05% 6-Jun 0.23% 6-Jul 1.81% 7-Mar 2.81% 8-Apr 0.26% 8-May 0.44% 7-Jun -0.73% 8-Jul 1.29% 8-Mar -0.11% 9-Apr 1.73% 9-May 1.11% 8-Jun 0.20% 9-Jul -0.40% 9-Mar 0.73% 10-Apr -0.10% 10-May 1.82% 10-Jun -0.26% 10-Jul 1.11% 11-Mar 1.67% 12-Apr 1.18% 11-May -0.89% 11-Jun -0.46% 11-Jul 1.82% 12-Mar -2.46% 13-Apr 1.78% 13-May 1.85% 13-Jun 1.07% 12-Jul 1.06% 13-Mar -0.73% 16-Apr -0.75% 14-May 0.33% 14-Jun 0.40% 13-Jul -0.58% 14-Mar 1.18% 17-Apr 0.70% 15-May 0.65% 17-Jun 0.33% 15-Jul -0.86% 16-Mar -0.11% 18-Apr -0.90% 16-May 0.78% 18-Jun 0.78% 16-Jul 0.97% 19-Mar 0.84% 20-Apr 1.06% 17-May 0.64% 19-Jun 2.07% 17-Jul 0.18% 20-Mar 2.10% 22-Apr 0.15% 18-May -0.68% 20-Jun 1.84% 19-Jul 1.44% 21-Mar 0.70% 23-Apr 1.55% 20-May -0.59% 22-Jun -0.51% 20-Jul 0.29% 22-Mar -0.11% 24-Apr 1.18% 21-May 0.74% 24-Jun 0.10% 22-Jul -1.26% 23-Mar -1.08% 25-Apr -0.24% 22-May 1.87% 25-Jun 0.36% 23-Jul 0.02% 25-Mar 26-Apr -1.07% 23-May 1.03% 26-Jun -0.77% 24-Jul -2.94% 26-Mar 27-Apr 1.67% 24-May 1.64% 27-Jun 1.12% 25-Jul -0.04% 27-Mar 25-May 0.65% 28-Jun 1.57% 26-Jul 2.43% 28-Mar TOTAL -0.47 TOTAL 12.07% TOTAL 1.31% TOTAL 5.69% TOTAL 9.74% Avg. RETURNS -0.02611 Avg. RETURNS 0.006035 Avg. RETURNS 0.06231 Avg. RETURNS 0.0027095 Avg. RETURNS 0.0046381 72 LIQUID FUNDS Month sensex returns HDFC Liq (Smmean) (Bmmean)

(Sm-Sm)*(TmTm) (Tm-mean)*(tmmean) March -0.14 0.03 -0.132 0.002 -0.000264 0.000004 April 0.14 0.03 0.148 0.002 0.000296 0.000004 May 0.02 0.03 0.028 0.002 0.000056 0.000004 June -0.17 0.02 -0.162 -0.008 0.001296 0.000064 July 0.11 0.03 0.118 0.002 0.000236 0.000004 TOTAL -0.04 0.14 0.00162 MEAN -0.008 0.028 BETA 0.00162/ 0.08028 ALPHA 0.028 0.02018 Standard Deviation 0.000027 Month sensex returns Pru ICICI Liquid (Sm-mean) (Bm-mean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean) March -0.14 0.03 -0.132 -0.032 0.004224 0.001024 April 0.14 0.04 0.148 -0.022 -0.003256 0.000484 May 0.02 0.03 0.028 -0.032 -0.000896 0.001024 June -0.17 0.18 -0.162 0.118 -0.019116 0.013924 July 0.11 0.03 0.118 -0.032 -0.003776 0.001024 TOTAL -0.04 0.31 -0.02282 0.005834117 MEAN -0.008 0.062 BETA -0.02282/0.08028 ALPHA 0.059725959 -0.2843 Standard Deviation 0.0058 73 Month sensex returns magnum (Sm-mean) (Bm-mean) (Sm-Sm)* (Tm-Tm) (Tm-mean)*(tm-mean) March -0.14 0.0024 -0.132 0.002032 -0.000268224 0.00000413 April 0.14 0.0002 0.148 -0.000168 -0.000024864 0.00000003 May 0.02 0.00021 0.028 -0.000158 -0.000004424 0.00000002 June -0.17 0.00018 -0.162 -0.000188 0.000030456 0.00000004 July 0.11 0.0002 0.118 -0.000168 -0.000019824 0.00000003 TOTAL -0.04 0.00319 -0.00028688 0.00000183 MEAN -0.008 0.000638 BETA -0.00029/ 0.08028 ALPHA 0.000609412 -0.00361 Standard Deviation 0.00000183 Month sensex returns Templeton India Liquid Plus (Sm-mean) (Bm-mean) (Sm-Sm)*(TmTm) (Tm-mean)*(tm-mean) March -0.14 0.03 -0.132 0.022168 -0.002926176 0.00049142 April 0.14 0.003 0.148 -0.004832 -0.000715136 0.000023348

May 0.02 0.003 0.028 -0.004832 -0.000135296 0.000023348 June -0.17 0.003 -0.162 -0.004832 0.000782784 0.000023348 July 0.11 0.00016 0.118 -0.007672 -0.000905296 0.000058860 TOTAL -0.04 0.03916 -0.00389912 MEAN -0.008 0.007832 BETA -0.0039/ 0.08028 ALPHA 0.007443448 -0.04858 Standard Deviation 0.00021 Month sensex returns JM Basic Fund (Sm-mean) (Bm-mean) (Sm-Sm)*(TmTm) (Tm-mean)*(tm-mean) March -0.14 -0.00026 -0.132 -0.0153308 0.002023666 0.000235033 April 0.14 0.006 0.148 -0.0090698 -0.00134233 8.22613E-05 May 0.02 0.06231 0.028 0.0472402 0.001322726 0.002231636 June -0.17 0.0027 -0.162 -0.0123698 0.002003908 0.000153012 July 0.11 0.0046 0.118 -0.0104698 -0.001235436 0.000109617 TOTAL -0.04 0.075349 0.002772532 0.000934968 MEAN -0.008 0.01507 BETA 0.00277/ 0.08028 ALPHA 0.015346086 74 0.0345 Standard Deviation 0.00093 SCHEMES BETA ALPHA S.D. HDFC Liq 0.02018 0.028 0.000027 Pru ICICI -0.284 0.06 0.01 Magnum -0.0036 0.0006 0 Templeton India -0.049 0.007 0.00021 JM Basic Fund 0.0345 0.015 0.0093 INTERPRETATION: BETA In Liquid most of the schemes has shown more volatility except HDFC Liquid Fund and JM Basic Fund. All other funds has been volatile as compared to SENSEX. ALPHA As the nature of Liquid Fund is to provide easy liquidy to investors, therefore the return accepted from this type of fund is also less. Among these funds Magnum Instacash has given less returns as compared to other funds. STANDARD DEVIATION Among the above mentioned schemes Pru ICICI has shown more volatility in its portfolio. But Magnum Insta cash has shown no deviation in its portfolio. Therefore for short term investors HDFC Liquid Fund is suitable as it has given returns and at the same time in has not shown much volatility as compared to SENSEX returns. RECOMMENDATIONS 75 Remember to pack the following investment gems in your luggage as you set forth on your financial journey. These guideposts reinforce and expand the key points

covered throughout Building Your Mutual Fund Portfolio. Diversify for investment success: Develop a solid plan based on your age, time horizon, liquidity needs, income and risk tolerance. Stick with it until your circumstances change. Periodically rebalance your holdings to your original asset allocation benchmark: By doing this, you will wind up selling shares in expensive funds and reinvesting in cheaper ones. Invest as much as you can in stock funds: As a rough rule, try to hold a percentage at least equal to 100 minus your age in stocks. Senior citizens might consider 110 minus their ages to avoid growing too conservative. Dont hop from fund to fund: Traders often lag the long-range returns of the stock and bonds markets. Set your sights on building wealth slowly: Get rich quick schemes often backfire. People who amass fortunes through speculation frequently also learn how it feels to get poor quickly. Keep it simple: Basic investment plans often work best on the quest for wealth. Avoid gimmicks: Dont invest in anything you dont understand. Pain vanilla funds survive the test of time better than faddish peers that make use of derivatives and other arcane strategies. Do your home work before starting out: Never buy or sell Mutual Funds solely on the basis of tips. If a suggestion seems to have merit, do your own analysis. Focus on risk, return and cost when evaluating funds: Keep in mind that a funds risk and expenses are easier to predict than its return. Judge past performance with a grain of salt: Historic returns dont always predict future results, especially if a funds management or investment style has changed recently. Dont neglect the prospectus: Youll find the guts of this document in the financial - highlights. Look for past expense rations, portfolio turnovers, total annual returns and year to year changes in assets. 76 Consider hiring a stockbroker or financial planner if you need help with your portfolio: Just make sure the individual is competent and will your needs. The more you understand about investment risks, return and costs, better you can evaluate the kind of jobs your advisor is doing. Dont overlook estate planning in your investment game plan: A living trust has important advantage over a will. Make sure your Mutual Fund accounts are titled correctly: Individual, joint, custodial and trust account are four common alternatives. The manners of titling takes precedence over any instructions in your heirs know about your accounts. Take advantage of fund company service: Telephone reps often can furnish answers to your questions. Let time work for you: At 10 percent annually the long run average return on stocks your money doubles every 7.3 years, quadruples every 14.6 years and expands tenfold every 24.2 years. Emphasize time over market timing: Buy good stock funds and stay with them for the long haul. Even professional have trouble predicting the markets next move. Invest regularly: Its been demonstrated that you can do well over the long haul even if you invest money each year at or near the markets annual peak. Recognize that the risk of being in stock decreases as your holding period lengthens: Known as time diversification, it works because the good years far outweigh

the bad over lengthy period. On average, seven out of every ten years are winners in the stock market. Save as much of your paycheck as you can: The older you get and the higher your income, the larger the percentage you should strive to set aside. Consider painless and efficient automatic investment plans, as offered by many fund companies. Your monthly investment go straight into your chosen fund from either a bank account or your paycheck. Pay attention to what T-bills yield relative to stocks: by dividing the yield on the former by the yield on the latter, when 91 days T-bills yield more than twice the sensex 30s yield, it could signal that stocks have become overpriced. 77 Conversely, recognize the excellent value offered by stocks any time the Tbills /stock yield ration is considerably below 2. At the extreme, stock market condition could be highly favorable when both numbers are about equal. Dont expect good or bad times to last forever. Stocks can stay overvalued or undervalued for surprisingly long stretches, but bull markets always come to an end, and so do bear markets. Use standard deviation instead of beta to evaluate a mutual fund risk: The former is a pure, unbiased measure of volatility, which is not tied to a particular stockprice index as is beta. Standard deviation measures the extent to which returns bob up and down around their average. Examine your funds composite PE ratio: The average price earnings ratio for all the stocks it holds. If a funds PE is well above that of the sensex 30s, it faces greater possible losses in a correction or bear market. Remember that volatile funds might not be so bad when held in appropriate proportions within a broad portfolio. Combining funds that rise and fall at different times could result in an overall smoother ride. Combine funds that follow the growth and value stock picking styles: as one style normally is out of favour when the other is in. your portfolios fluctuations will be less erratic if you include investments from both camps. Dont give up stock funds, even if youre retired: A 65 year old retiree can expect to live another 20 years or so. If you need income, take your dividends in cash. If thats insufficient, make systematic withdrawals from a diversified portfolio. But dont set up a systematic withdrawal plan without forst calculating how long your capital will last: given your expected return and withdrawal rate. Considering the impact of taxes and inflation, you risk depleting your nest egg if your annual withdrawal rate exceeds about 6 percent. Stay away from funds that are not members of reputable families: Unless you know the manager has an excellent record. In particular, avoid tiny funds those with assts less than 400 million unless they are promising members of an established group 78 Dont assume that laggard funds will bounce back: Long term losers have perennially poor performance records, along with outsized expenses, a small and declining asset base, high portfolio turnover and, sometimes, legal problems. Dont look to your nest egg for thrills and excitement: Some times, relatively dull investments, such as index funds, are best. Keep in minds that about 70 percent of actively managed funds under perform the market: because operating expenses, transaction costs and cash holdings lower returns. This represents the main argument in favor of index funds. Favor index funds for a meaningful core portion of your stock allocation:

say 25 to 50 percent or so. With these portfolios you need not worry that a fund manager might jump ship. With a passive approach, it doesnt matter so much whos in control. Beware of gimmicks when shopping for an index fund: Avoid enhanced index portfolios that claim they can outperform the sensex or other benchmarks. Plain vanilla products with rock bottom costs are best. Include small cap and international funds in your portfolio for better risk adjusted performance: Younger investors with long time horizons should take a significant stake in these categories. Look beyond a funds name to its actual investment policies and portfolio holdings. Avoid small stock portfolios with assets greater than 20,000 million or so unless youre convinced the management is exceptionally talented. Keep in mind that small stocks move in cycles of five to seven years, during which they either outperform or underperform the large blue chips. Conversely, do take bigger positions in small stocks when theyre cheap: Small companies represent excellent value when the PE of any funds approximates that of the sensex. Dont hesitate to venture abroad: International investing is a great way to round out a portfolio, since about two-thirds of world stock market values exist outside India. Lean to international rather than global funds for your over-seas exposure: The former invest exclusively in foreign markets, whereas the latter have stakes in 79 stateside stocks as well. With international funds, you can fine tune your overseas exposure more precisely. Check the foreign weightings of your domestic stock funds: which could hold up to 15 percent or more of their assets in non- Indian issues to try to improve performance. You may already have more international exposure than you think. Maintain modest stake in emerging stock markets: as well if you have a lengthy investment horizon. Developing nations offer exciting long term growth potential. Dont expect international diversification to reduce your portfolios volatility all the time: Normally, it works reasonably well, but during a global panic, all the worlds major stock exchanges could tumble together. CONCLUSION: I order to study the concept of mutual fund we should note that a mutual fund is a trust that pools the money of several investors and manages investments on behalf. The fund collects this money from investors through various schemes. Each schemes is differentiated by its objectives of investments or in other words a broadly defined purpose of how the collected money is going to be involved. Investors invest in mutual fund due to following advantages: they have professional management, diversification, convenient administration, return potential, low cost, liquidity. By comparing the above mentoined schemes I came to know the risk and return relation between the specified schemes. Therefore investors before investing in any Mutual Fund schemes they should study the risk and return relation. And if the risk and returns is been matched with their planning, then only the investors should go for Mutual Fund schemes. So the future of mutual funds in India is bright, because it meets investor s needs perfectly. This will give boost to Indian investors and will attract foreign investors also. It will lead to the growth of strong institutional framework that can support the capital

markets in the long run.

BIBLIOGRAPHY: www.indiainfoline.com www.amfiindia.com www.mutualfunds.com www.investopidia.com