ABSTRACT

In India Mutual Fund Industry started with the setting up of UTI in 1964.
Public Sector Banks and Financial Institutions began to establish Mutual Funds in
1987. The Private Sector and Foreign Institutions were allowed to set up Mutual
Funds in 1993. Today, there are over 29 Mutual Funds and over 300 Schemes with
total assets of approximately Rs.10,000 Crores. This fast growing industry is
regulated by the SEBI.
The mutual fund industry in India started in 1963 with the formation of Unit
Trust of India, at the initiative of the Government of India and Reserve Bank .The
objective then is to attract the small investors and introduce them to market
investments. Since then, the history of mutual funds in India can be broadly divided
into four distinct phases.
To understand the performance and benefits of Mutual Funds.To conduct a
Market study & find the fund preference and awareness of full schemes of AMC &
dividend option opted.This Study has been conducted within specific and limited time
period.The Project has been conducted in limited geographical area in Hyderabad.In
collection of data from the investors, personal bias may be present.
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.

There is comprehensive knowledge and understanding of Mutual Funds

amongst all individuals instrumental in selling the Mutual Fund schemes to investors
including employees of intermediaries, individual agents and financial planners.

The Mutual Fund industry has to now take the more difficult but long-term
sustainable route of gathering assets from individual investors by providing them
value added, financial planning services and ensuring that Mutual Funds are an
integral part of their overall portfolio.

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 TABLE CONTENTS

CHAPTERS TITLES PAGE NUMBERS

INTRODUCTION
OBJECTIVES
CHAPTER-I NEED OF THE STUDY
RESEARCH
METHODOLOGY
SCOPE OF THE STUDY
LIMITATIONS

CHAPTER-II REVIEW OF LITERATURE

INDUSTRY PROFILE
CHAPTER-III &
COMPANY PROFILE

DATA ANALYSIS
CHAPTER-IV &
INTERPRETATION

FINDINGS
CHAPTER-V SUGGESTIONS
CONCLUSION

BIBLIOGRAPHY

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CHAPTER-I
INTRODUCTION

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 INTRODUCTION

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 appreciations realized by the
scheme are shared by its unit holders in proportion to the number of units owned by
them (prorate). 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 investaible 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.

A mutual fund is the ideal investment vehicle for today’s complex and modern
financial scenario. Market 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 place. 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 funds it difficult to keep track of ownership of his
assets, investments, brokerage dues and bank transactions etc.

A mutual fund is the answer to all these situations. It appoints professionally

qualified and experienced staff that manages each of these functions on a full time
basis. The large pool of money collected in the fund allows it to hire such staff at a
very low cost to each investor. In effect, the mutual fund vehicle exploits economics
of scale in all three areas – research, investments and transaction processing. While
the concept of individuals coming together to invest money collectively is not new,
the mutual fund in its present form is a 20th century phenomenon. In fact, mutual
funds gained popularity only after the Second World War. Globally, there are
thousands of firms offering tens of thousands of mutual funds with different
investment objectives. Today, mutual funds collectively manage almost as much as or
more money as compared to banks.
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NEED OF THE STUDY

1. Mutual funds are dynamic financial intuitions which play crucial role in an
economy by mobilizing savings and investing them in the capital market.
2. The activities of mutual funds have both short- and long-term impact on the savings
in the capital market and the national economy.
3. Mutual funds, trust, assist the process of financial deepening & intermediation.
4. to know the performance of various mutual fund providers in india
5. India is one of the few countries to day maintain a study growth rate is domestic
savings.

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SCOPE THE STUDY

1. The study is limited to the analysis made for a Growth scheme offered by four
AMC’s.
2. Each scheme is calculated their risk and return using different performance
measurement theories.
3. Because of the reason for such performance is immediately analyzed in the
issue.
4. Graphs are used to reflect the portfolio risk and return.

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OBJECTIVES OF THE STUDY
1. To show the wide range of investment options available in MF’s by explaining
various schemes offered by different AMC’s.
2. To help an investor to make a right choice of investment, while considering the
inherent risk factors. And mutual fund options of various MF providers.
3. To understand the recent trends in the MF world.
4. To understand the risk and return of the various schemes.
5. To find out the various problems faced by Indian mutual funds and possible
solutions.

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RESEARCH METHODOLOGY

This study is basically depends on

1. Primary Data
2. Secondary Data

Primary data: The primary data collected from the different companies through
enquiry.

Secondary data:

The secondary data collected from the different sites, broachers, news papers,
company offer documents, different books and through suggestions from the project
guide and from the faculty members of our college.

TOOLS USED IN THIS PROJECT

The following parameters were considered for analysis:

 Beta
 Alpha
 Correlation coefficient
 Treynor’s Ratio

 Sharpe’s Ratio

ADVANTAGES OF THE MUTUAL FUNDS

1. The investors risk is reduced to the minimum.
2. The funds managers maximize the income of the funds.
3. To achieve a similar degree of diversification, an individual investor as to
spend considerable and money.
4. In a mutual fund, it is possible to reinvest the dividend and capital gains.
5. Selection of shares debentures etc and timing is made available to investors. .

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LIMITATIONS OF THE STUDY:

1. The study is conducted in short period, due to which the study may not be detailed

in all aspects.
2. The study is limited only to the analysis of different schemes and its suitability to
different investors according to their risk-taking ability.
3. The study is based on secondary data available from monthly fact sheets, web sites;
offer documents, magazines and newspapers etc., as primary data was not accessible.
4. The study is limited by the detailed study of various schemes.
5. The NAV’S are not uniform.
6. The data collected for this study is not proper because some mutual funds are not
disclosing the correct information.
7. The study is not exempt from limitations of Sharpe Treynor and Jenson measure.
8. Unique risk is completely ignored in all the measure.

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 CHAPTER-II
REVIEW OF LITERATURE

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 CHAPTER-II
REVIEW OF LITERATURE
1. Dr. Sandeep Bansal, Deepak Garg and Sanjeev K Saini (2012), have studied
Impact of Sharpe Ratio & Treynor’s Ratio on Selected Mutual Fund Schemes.
This paper examines the performance of selected mutual fund schemes, that
the risk profile of the aggregate mutual fund universe can be accurately
compared by a simple market index that offers comparative monthly liquidity,
returns, systematic & unsystematic risk and complete fund analysis by using
the special reference of Sharpe ratio and Treynor’s ratio.

2. Dr. K. Veeraiah and Dr. A. Kishore Kumar (Jan 2014), conducted a research
on Comparative Performance Analysis of Select Indian Mutual Fund Schemes.
This study analyzes the performance of Indian owned mutual funds and
compares their performance. The performance of these funds was analyzed
using a five year NAVs and portfolio allocation. Findings of the study reveals
that, mutual funds out perform naïve investment. Mutual funds as a medium-
to-long term investment option are preferred as a suitable investment option
by investors.

3. Dr. Yogesh Kumar Mehta (Feb 2012), has studied Emerging Scenario of
Mutual Funds in India: An Analytical Study of Tax Funds. The present study
is based on selected equity funds of public sector and private sector mutual
fund. Corporate and Institutions who form only 1.16% of the total number of
investors accounts in the MFs industry, contribute a sizeable amount of Rs.
2,87,108.01 crore which is 56.55% of the total net assets in the MF industry. It
is also found that MFs did not prefer debt segment.

4. Dr Surender Kumar Gupta and Dr. Sandeep Bansal (Jul 2012), have done a
Comparative Study on Debt Scheme of Mutual Fund of Reliance and Birla
Sunlife. This study provides an overview of the performance of debt scheme
of mutual fund of Reliance, and Birla Sunlife with the help of Sharpe Index
after calculating Net Asset Values and Standard Deviation. This study reveals

11
 that returns on Debt Schemes are close to Benchmark return (Crisil Composite
Debt Fund Index: 4.34%) and Risk Free Return: 6% (average adjusted for last
five year).

5. Prof. V. Vanaja and Dr. R. Karrupasamy (2013), have done a Study on the
Performance of select Private Sector Balanced Category Mutual Fund
Schemes in India. This study of performance evaluation would help the
investors to choose the best schemes available and will also help the AUM’s
in better portfolio construction and can rectify the problems of
underperforming schemes. The objective of the study is to evaluate the
performance of select Private sector balanced schemes on the basis of returns
and comparison with their bench marks and also to appraise the performance
of different category of funds using risk adjusted measures as suggested by
Sharpe, Treynor and Jensen.

6. E. Priyadarshini and Dr. A. Chandra Babu (2011), have done Prediction of

The Net Asset Values of Indian Mutual Funds Using Auto- Regressive
Integrated Moving Average (Arima). In this paper, some of the mutual funds
in India had been modeled using Box-Jenkins autoregressive integrated
moving average (ARIMA) methodology. Validity of the models was tested
using standard statistical techniques and the future NAV values of the mutual
funds have been forecasted.

7. Dr. Ranjit Singh, Dr. Anurag Singh and Dr. H. Ramananda Singh (August
2011), have done research on Positioning of Mutual Funds among Small Town
and Sub-Urban Investors. In the recent past the significant proportion of the
investment of the urban investor is being attracted by the mutual funds. This
has led to the saturation of the market in the urban areas. In order to increase
their investor base, the mutual fund companies are exploring the opportunities
in the small towns and sub-urban areas. But marketing the mutual funds in
these areas requires the positioning of the products in the minds of the
investors in a different way. The product has to be acceptable to the investors,
it should be affordable to the investors, it should be made available to them
and at the same time the investors should be aware of it. The present paper

12
 deals with all these issues. It measures the degree of influence on
acceptability, affordability, availability and awareness among the small town
and sub-urban investors on their investment decisions.
8. Prof. Kalpesh P Prajapati and Prof. Mahesh K Patel (Jul 2012), have done a
Comparative Study On Performance Evaluation of Mutual Fund Schemes Of
Indian Companies. In this paper the performance evaluation of Indian mutual
funds is carried out through relative performance index, risk-return analysis,
Treynor's ratio, Sharp's ratio, Sharp's measure, Jensen's measure, and Fama's
measure. The data used is daily closing NAVs. The source of data is website
of Association of Mutual Funds in India (AMFI). The study period is 1st
January 2007 to 31st December, 2011. The results of performance measures
suggest that most of the mutual fund have given positive return during 2007 to
2011.
9. C.Srinivas Yadav and Hemanth N C (Feb 2014), have studied Performance of
Selected Equity Growth Mutual Funds in India: An Empirical Study during 1st
June 2010 To 31st May 2013. The study evaluates performance of selected
growth equity funds in India, carried out using portfolio performance
evaluation techniques such as Sharpe and Treynor measure. S&P CNX NIFTY
has been taken as the benchmark. The study conducted with 15 equity growth
Schemes (NAV ) were chosen from top 10 AMCs ( based on AUM) for the
period 1st June 2010 to 31st may 2013(3 years).

10. Rashmi Sharma and N. K. Pandya (2013), have done an overview of Investing
in Mutual Fund. In this paper, structure of mutual fund, comparison between
investments in mutual fund and other investment options and calculation of
NAV etc. have been considered. In this paper, the impacts of various
demographic factors on investors’ attitude towards mutual fund have been
studied. For measuring various phenomena and analyzing the collected data
effectively and efficiently for drawing sound conclusions, drawing pie charts
has been used and for analyzing the various factors responsible for investment
in mutual funds.

11. Rahul Singal, Anuradha Garg and Dr Sanjay Singla (May 2013), have done
Performance Appraisal of Growth Mutual Fund. The paper examines the

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 performance of 25 Growth Mutual Fund Schemes. Over the time period Jan
2004 to Dec 2008. For this purpose three techniques are used (I) Beta (II)
Sharpe Ratio (III) Treynor Ratio. Rank is given according to result drawn
from this scheme and comparison is also made between results drawn from
different schemes and normally the different are insignificant.

12. Dhimen Jani and Dr. Rajeev Jain (Dec 2013), have studied Role of Mutual
Funds in Indian Financial System as a Key Resource Mobiliser. This paper
attempts to identify, the relationship between AUM mobilized by mutual fund
companies and GDP growth of the India. To find out correlation coefficient
Kendall’s tau b and spearman’s rho correlation ship was applied, the data
range was selected from 1998-99 to 2022-10.

13. Dr. R. Narayanasamy and V. Rathnamani (Apr 2013), have done Performance
Evaluation of Equity Mutual Funds (On Selected Equity Large Cap Funds).
This study, basically, deals with the equity mutual funds that are offered for
investment by the various fund houses in India. This study mainly focused on
the performance of selected equity large cap mutual fund schemes in terms of
risk- return relationship. The main objectives of this research work are to
analysis financial performance of selected mutual fund schemes through the
statistical parameters such as (alpha, beta, standard deviation, r-squared,
Sharpe ratio).

14. Dr. Ashok Khurana and Kavita Panjwani (Nov, 2010), have analysed Hybrid
Mutual Funds. Mutual fund returns can be compared using Arithmetic mean &
Compounded Annual Growth Rate. Risk can be analyzed by finding out
Standard Deviation, Beta while performance analysis is based on Risk-Return
adjustment. Key ratios like Sharpe ratio and Treynor ratio are used for Risk-
Return analysis. Funds are compared with a benchmark, industry average, and
analysis of volatility and return per unit to find out how well they are
performing with respect to the market Value at Risk analysis can be done to
find out the maximum possible losses in a month given the investor had made
an investment in that month. Based on the quantitative study conducted

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 company a fund is chosen as the best fund in the Balance fund growth
schemes.

15. Dr. D. Rajasekar (Sep 2013), has done a Study on Investor`s Preference
Towards Mutual Funds With Reference To Reliance Private Limited, Chennai
- An Empirical Analysis. The data was analyzed using the statistical tools like
percentage analysis, chi square, weighted average. The report was concluded
with findings and suggestions and summary. From the findings, it was inferred
overall that the investor are highly concerned about safety and growth and
liquidity of investments. Most of the respondents are highly satisfied with the
benefits and the service rendered by the Reliance mutual funds.
16. Dr. Mamta Shah (Dec 2012) has done research on Marketing Practices of
Mutual Funds. Development of an economy necessarily depends upon its
financial system and the rate of new capital formation which can be achieved
by mobilizing savings and adopting an investment pattern, be its self-financing
(i.e. direct or indirect) where financial intermediaries like banks, insurance and
other financial companies come in the picture and mediate between savers and
borrowers of funds. In the same way there are different types of investors and
each category of investors differs in its objectives and hence it is imperative
for investment managers to choose an appropriate investment policy for the
group they are dealing with, further managing the investment is a dynamic and
an ongoing process.

17. Rajiv G. Sharma (Aug 2013) has done a Comparative Study on Public and
Private Sector Mutual Funds in India. The study at first tests whether there is
any relation between demographic profile of the investor and selection of
mutual fund alternative from among public sector and private sector. For the
purpose of analysis perceptions of selected investors from public and private
sector mutual funds are taken into consideration. The major factors
influencing the investors of public and private sectors mutual funds are
identified. The factors under consideration to compare between perceptions of
public and private sector mutual fund investors are Liquidity, Security,
Flexibility, Management fee, Service Quality, Transparency, Returns and Tax
benefits.

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18. Dr. E. Priyadarshini (2013), has done Analysis of the Performance of Artificial
Neural Network Technique for Forecasting Mutual Fund Net Asset Values. In
this paper, the Net Asset Values of four Indian Mutual Funds were predicted
using Artificial Neural Network after eliminating the redundant variables
using PCA and the performance was evaluated using standard statistical
measures such as MAPE, RMSE, etc.

19. Vibha Lamba (Feb 2014), has done an analysis of Portfolio Management in
India. The purpose of present study is to analyse the scope and importance of
portfolio management in India. This paper also focuses on the types and steps
of portfolio management which a portfolio manager should take to provide
maximum returns and minimum risk to his clients for their investments.

20. Dr. N. K. Sathya Pal Sharma and Ravikumar. R (2013), have done the
Analysis of the Risk and Return Relationship of Equity Based Mutual Fund in
India. In this paper an attempt has been made to analyze the performance of
equity based mutual funds. A total of 15 schemes offered by 2 private sector
companies and 2 public sector companies, have been studied over the period
April 1999 to April 2013 (15years). The analysis has been made using the
risk-return relationship and Capital Asset Pricing model (CAPM).

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THEORETICAL REVIEW
CONCEPT OF MUTUAL FUNDS

Like most developed and developing countries the mutual fund culture has been
catching on in India. There are various reasons for this. Mutual funds make it easy
and less costly for investors to satisfy their need for capital growth, income and/or
income preservation. And in addition to this a mutual fund brings the benefits of
diversification and money management to the individual investor, providing an
opportunity for financial success that was once available only to a select few.

A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned
through these investments and the capital appreciations realized are shared by its unit
holders in proportion to the number of units owned by them. Thus a Mutual Fund is
the most suitable investment for the common man as it offers an opportunity to invest
in a diversified, -professionally managed basket of securities at a relatively low cost.
The flow chart below describes broadly the working of a mutual fund:

Mutual Fund Operation Flow Chart

BENEFITS OF MUTUAL FUNDS

Investing in mutual has various benefits which makes it an ideal investment avenue.
Following are some of the primary benefits.

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Professional investment management
One of the primary benefits of mutual funds is that an investor has access to
professional management. A good investment manager is certainly worth the fees you
will pay. Good mutual fund managers with an excellent research team can do a better
job of monitoring the companies they have chosen to invest in than you can, unless
you have time to spend on researching the companies you select for your portfolio.
That is because Mutual funds hire full-time, high-level investment professionals.
Funds can afford to do so as they manage large pools of money. The managers have
real-time access to crucial market information and are able to execute trades on the
largest and most cost-effective scale. When you buy a mutual fund, the primary asset
you are buying is the manager, who will be controlling which assets are chosen to
meet the funds' stated investment objectives.

Diversification
A crucial element in investing is asset allocation. It plays a very big part in the
success of any portfolio. However, small investors do not have enough money to
properly allocate their assets. By pooling your funds with others, you can quickly
benefit from greater diversification. Mutual funds invest in a broad range of securities.
This limits investment risk by reducing the effect of a possible decline in the value of
any one security. Mutual fund unit-holders can benefit from diversification techniques
usually available only to investors wealthy enough to buy significant positions in a
wide variety of securities.

Low Cost
A mutual fund let's you participate in a diversified portfolio for as little as Rs.5,000,
and sometimes less. And with a no-load fund, you pay little or no sales charges to
own them.

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Convenience and Flexibility
Investing in mutual funds has its own convenience. While you own just one security
rather than many, you still enjoy the benefits of a diversified portfolio and a wide
range of services. Fund managers decide what securities to trade, collect the interest
payments and see that your dividends on portfolio securities are received and your
rights exercised. It also uses the services of a high quality custodian and registrar.
Another big advantage is that you can move your funds easily from one fund to
another within a mutual fund family. This allows you to easily rebalance your
portfolio to respond to significant fund management or economic changes.
Liquidity
In open-ended schemes, you can get your money back promptly at net asset value
related prices from the mutual fund itself.
Transparency
Regulations for mutual funds have made the industry very transparent. You can track
the investments that have been made on you behalf and the specific investments made
by the mutual fund scheme to see where your money is going. In addition to this, you
get regular information on the value of your investment.
Variety
There is no shortage of variety when investing in mutual funds. You can find a mutual
fund that matches just about any investing strategy you select. There are funds that
focus on blue-chip stocks, technology stocks, bonds or a mix of stocks and bonds. The
greatest challenge can be sorting through the variety and picking the best for you.

TYPES OF MUTUAL FUNDS

Getting a handle on what's under the hood helps you become a better investor and put
together a more successful portfolio. To do this one must know the different types of
funds that cater to investor needs, whatever the age, financial position, risk tolerance
and return expectations. The mutual fund schemes can be classified according to both
their investment objective (like income, growth, tax saving) as well as the number of
units (if these are unlimited then the fund is an open-ended one while if there are
limited units then the fund is close-ended).

19
This section provides descriptions of the characteristics -- such as investment
objective and potential for volatility of your investment -- of various categories of
funds. The type of securities purchased by each fund organizes these descriptions:
equities, fixed-income, money market instruments, or some combination of these.

Open-Ended Schemes
Open-ended schemes do not have a fixed maturity period. Investors can buy or sell
units at NAV-related prices from and to the mutual fund on any business day. These
schemes have unlimited capitalization, open-ended schemes do not have a fixed
maturity, there is no cap on the amount you can buy from the fund and the unit capital
can keep growing. These funds are not generally listed on any exchange.
Open-ended schemes are preferred for their liquidity. Such funds can issue and
redeem units any time during the life of a scheme. Hence, unit capital of open-ended
funds can fluctuate on a daily basis. The advantages of open-ended funds over close-
ended are as follows:
Any time exit option. The issuing company directly takes the responsibility of
providing an entry and an exit. This provides ready liquidity to the investors and
avoids reliance on transfer deeds, signature verifications and bad deliveries. Any time
entry option, an open-ended fund allows one to enter the fund at any time and even to
invest at regular intervals.

Close-Ended Schemes
Close-ended schemes have fixed maturity periods. Investors can buy into these funds
during the period when these funds are open in the initial issue. After that such
schemes can not issue new units except in case of bonus or rights issue. However,
after the initial issue, you can buy or sell units of the scheme on the stock exchanges
where they are listed. The market price of the units could vary from the NAV of the
scheme due to demand and supply factors, investors’ expectations and other market
factors

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Classification According To Investment Objectives
Mutual funds can be further classified based on their specific investment objective
such as growth of capital, safety of principal, current income or tax-exempt income.
In general mutual funds fall into three general categories:
1] Equity Funds are those that invest in shares or equity of companies.
2] Fixed-Income Funds invest in government or corporate securities that offer fixed
rates of return are
3] While funds that invest in a combination of both stocks and bonds are called
Balanced Funds.

Growth Funds
Growth funds primarily look for growth of capital with secondary emphasis on
dividend. Such funds invest in shares with a potential for growth and capital
appreciation. They invest in well-established companies where the company itself and
the industry in which it operates are thought to have good long-term growth potential,
and hence growth funds provide low current income. Growth funds generally incur
higher risks than income funds in an effort to secure more pronounced growth.
Some growth funds concentrate on one or more industry sectors and also invest in a
broad range of industries. Growth funds are suitable for investors who can afford to
assume the risk of potential loss in value of their investment in the hope of achieving
substantial and rapid gains. They are not suitable for investors who must conserve
their principal or who must maximize current income.

Growth and Income Funds

Growth and income funds seek long-term growth of capital as well as current income.
The investment strategies used to reach these goals vary among funds. Some invest in
a dual portfolio consisting of growth stocks and income stocks, or a combination of
growth stocks, stocks paying high dividends, preferred stocks, convertible securities
or fixed-income securities such as corporate bonds and money market instruments.
Others may invest in growth stocks and earn current income by selling covered call
options on their portfolio stocks.
Growth and income funds have low to moderate stability of principal and moderate
potential for current income and growth. They are suitable for investors who can

21
assume some risk to achieve growth of capital but who also want to maintain a
moderate level of current income.
Fixed-Income Funds
Fixed income funds primarily look to provide current income consistent with the
preservation of capital. These funds invest in corporate bonds or government-backed
mortgage securities that have a fixed rate of return. Within the fixed-income category,
funds vary greatly in their stability of principal and in their dividend yields. High-
yield funds, which seek to maximize yield by investing in lower-rated bonds of longer
maturities, entail less stability of principal than fixed-income funds that invest in
higher-rated but lower-yielding securities.
Some fixed-income funds seek to minimize risk by investing exclusively in securities
whose timely payment of interest and principal is backed by the full faith and credit of
the Indian Government. Fixed-income funds are suitable for investors who want to
maximize current income and who can assume a degree of capital risk in order to do
so.

Balanced
The Balanced fund aims to provide both growth and income. These funds invest in
both shares and fixed income securities in the proportion indicated in their offer
documents. Ideal for investors who are looking for a combination of income and
moderate growth.

Money Market Funds/Liquid Funds

For the cautious investor, these funds provide a very high stability of principal while
seeking a moderate to high current income. They invest in highly liquid, virtually
risk-free, short-term debt securities of agencies of the Indian Government, banks and
corporations and Treasury Bills. Because of their short-term investments, money
market mutual funds are able to keep a virtually constant unit price; only the yield
fluctuates.
Therefore, they are an attractive alternative to bank accounts. With yields that are
generally competitive with - and usually higher than -- yields on bank savings
account, they offer several advantages. Money can be withdrawn any time without
penalty. Although not insured, money market funds invest only in highly liquid, short-

22
term, top-rated money market instruments. Money market funds are suitable for
investors who want high stability of principal and current income with immediate
liquidity.

Specialty/Sector Funds
These funds invest in securities of a specific industry or sector of the economy such as
health care, technology, leisure, utilities or precious metals. The funds enable
investors to diversify holdings among many companies within an industry, a more
conservative approach than investing directly in one particular company.
Sector funds offer the opportunity for sharp capital gains in cases where the fund's
industry is "in favor" but also entail the risk of capital losses when the industry is out
of favor. While sector funds restrict holdings to a particular industry, other specialty
funds such as index funds give investors a broadly diversified portfolio and attempt to
mirror the performance of various market averages.
Index funds generally buy shares in all the companies composing the BSE Sensex or
NSE Nifty or other broad stock market indices. They are not suitable for investors
who must conserve their principal or maximize current income.

RISK Vs. REWARD

Having understood the basics of mutual funds the next step is to build a successful
investment portfolio. Before you can begin to build a portfolio, one should understand
some other elements of mutual fund investing and how they can affect the potential
value of your investments over the years. The first thing that has to be kept in mind is
that when you invest in mutual funds, there is no guarantee that you will end up with
more money when you withdraw your investment than what you started out with.
That is the potential of loss is always there. The loss of value in your investment is
what is considered risk in investing. Even so, the opportunity for investment growth
that is possible through investments in mutual funds far exceeds that concern for most
investors. Here’s why At the cornerstone of investing is the basic principal that the
greater the risk you take, the greater the potential reward. Or stated in another way,
you get what you pay for and you get paid a higher return only when you're willing to
accept more volatility.

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Risk then, refers to the volatility -- the up and down activity in the markets and
individual issues that occurs constantly over time. This volatility can be caused by a
number of factors -- interest rate changes, inflation or general economic conditions. It
is this variability, uncertainty and potential for loss, that causes investors to worry.
We all fear the possibility that a stock we invest in will fall substantially. But it is this
very volatility that is the exact reason that you can expect to earn a higher long-term
return from these investments than from a savings account.
Different types of mutual funds have different levels of volatility or potential price
change, and those with the greater chance of losing value are also the funds that can
produce the greater returns for you over time. So risk has two sides: it causes the
value of your investments to fluctuate, but it is precisely the reason you can expect to
earn higher returns. You might find it helpful to remember that all financial
investments will fluctuate. There are very few perfectly safe havens and those simply
don't pay enough to beat inflation over the long run.

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TYPES OF RISKS

All investments involve some form of risk. Consider these common types of risk and
evaluate them against potential rewards when you select an investment.

Market Risk
At times the prices or yields of all the securities in a particular market rise or fall due
to broad outside influences. When this happens, the stock prices of both an
outstanding, highly profitable company and a fledgling corporation may be affected.
This change in price is due to "market risk". Also known as systematic risk.
Inflation Risk
Sometimes referred to as "loss of purchasing power." Whenever inflation rises
forward faster than the earnings on your investment, you run the risk that you'll
actually be able to buy less, not more. Inflation risk also occurs when prices rise faster
than your returns.
Credit Risk
In short, how stable is the company or entity to which you lend your money when you
invest? How certain are you that it will be able to pay the interest you are promised, or
repay your principal when the investment matures?
Interest Rate Risk
Changing interest rates affect both equities and bonds in many ways. Investors are
reminded that "predicting" which way rates will go is rarely successful. A diversified
portfolio can help in offsetting these changes.
Exchange risk
A number of companies generate revenues in foreign currencies and may have
investments or expenses also denominated in foreign currencies. Changes in exchange
rates may, therefore, have a positive or negative impact on companies which in turn
would have an effect on the investment of the fund.
Investment Risks
The sectoral fund schemes, investments will be predominantly in equities of select
companies in the particular sectors. Accordingly, the NAV of the schemes are linked
to the equity performance of such companies and may be more volatile than a more
diversified portfolio of equities.

25
Call Risks
Call risk is associated with bonds have and embedded call option in them. This option
gives the issuer the right to call back the bonds prior to maturity. Then investor how
ever is exposed to some risks here. The price of the callable bond many not rise much
above the price at which the issuer may call the bond.
Changes in the Government Policy
Changes in Government policy especially in regard to the tax benefits may impact the
business prospects of the companies leading to an impact on the investments made by
the fund. Effect of loss of key professionals and inability to adapt business to the rapid
technological change.

An industries' key asset is often the personnel who run the business i.e.
intellectual properties of the key employees of the respective companies. Given the
ever-changing complexion of few industries and the high obsolescence levels,
availability of qualified, trained and motivated personnel is very critical for the
success of industries in few sectors. It is, therefore, necessary to attract key personnel
and also to retain them to meet the changing environment and challenges the sector
offers. Failure or inability to attract/retain such qualified key personnel may impact
the prospects of the companies in the particular sec

26
Investment cycle in Mutual Funds

27
Types of mutual funds

History of the Indian Mutual Fund Industry:

The mutual fund industry in India started in 2263 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank the. The history
of mutual funds in India can be broadly divided into four distinct phases

First Phase – 2264-87(UTI MONOPOLY)

An Act of Parliament established Unit Trust of India (UTI) on 2263. It was set up by
the Reserve Bank of India and functioned under the Regulatory and administrative
control of the Reserve Bank of India. In 2278 UTI was de-linked from the RBI and
the Industrial Development Bank of India (IDBI) took over the regulatory and
administrative control in place of RBI. The first scheme launched by UTI was Unit
Scheme 2264. At the end of 2288 UTI had Rs.6, 700 crores of assets under
management.

28
Second Phase – 2287-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund
established in 31-3-202387 followed by Can bank Mutual Fund (Dec 87), Punjab
National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of
India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund
in 31-3-202389 while GIC had set up its mutual fund in December 2290.
At the end of 2293, the mutual fund industry had assets under management of Rs.47,
004 cores.

Third Phase – 2293-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 2293, a new era started in the Indian mutual
fund industry, giving the Indian investors a wider choice of fund families. Also, 2293
was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except UTI were to be registered and governed. The erstwhile
Kothari Pioneer (now merged with Franklin Templeton) was the first private sector
mutual fund registered in July 2293.
The 2293 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 2296. The industry now
functions under the SEBI (Mutual Fund) Regulations 2296.
The number of mutual fund houses went on increasing, with many foreign I am
dearmutual funds setting up funds in India and also the industry has witnessed several
mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds
with total assets of Rs. 1, 21,805 crores.

29
Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 2263 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit
Trust of India with assets under management of Rs.29, 835 crores as at the end of
January 2003, representing broadly, the assets of US 64 scheme, assured return and
certain other schemes. The Specified Undertaking of Unit Trust of India, functioning
under an administrator and under the rules framed by Government of India and does
not come under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores
of assets under management and with the setting up of a UTI Mutual Fund,
conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking
place among different private sector funds, the mutual fund industry has entered its
current phase of consolidation and growth. As at the end of January 30, 2003, there
were 31 funds, which manage assets of Rs.104762 crores under 376 schemes.
The graph indicates the growth of assets over the years.

30
GROWTH IN ASSETS UNDER MANAGEMENT

India is at the first stage of a revolution that has already peaked in the U.S. The U.S.
boasts of an Asset base that is much higher than its bank deposits. In India, mutual
fund assets are not even 10% of the bank deposits, but this trend is beginning to
change. Recent figures indicate that in the first quarter of the current fiscal year.

The formation and operations of mutual funds in India is solely guided by SEBI
(Mutual Fund) Regulations, 2293, which came into force on 20 31-3-202393. The
regulations have since been replaced by the Securities and Exchange Board of India
(Mutual Funds) Regulations, 2296, through a notification on 9 December 2296.
A mutual fund comprises four separate entities, namely sponsor, mutual fund trust,
AMC and custodian. They are of course assisted by other independent administrative
entities like banks, registrars and transfer agents. We may discuss in brief the
formation of different entities, their functions and obligations.

The sponsor for a mutual fund can by any person who, acting alone or in combination
with another body corporate establishes the mutual fund and gets it registered with
SEBI. The sponsor is required to contribute at least 40 per cent of the minimum net
worth (Rs 10 crore) of the asset management company. The sponsor must have a

31
sound track record and general reputation of fairness and integrity in all his business
transactions.

As per SEBI Regulation, 2296, a mutual fund is to be formed by the sponsor and
registered with SEBI. A mutual fund shall be constituted in the form of a trust and the
instrument of trust shall be in the form of a deed, duly registered under the provisions
of the Indian Registration Act, 2208, executed by the sponsor in favor of trustees
named in such an instrument.

The board of trustees manages the mutual fund and the sponsor executes the trust
deeds in favor of the trustees. The mutual fund raises money through sale of units
under one or more schemes for investing in securities in accordance with SEBI
guidelines. It is the job of the mutual fund trustees to see that the schemes floated and
managed by the AMC appointed by the trustees, are in accordance with the trust
deeds and SEBI guidelines. It is also the responsibilities of the trustees to control the
capital property of mutual funds schemes.
The trustees have the right to obtain relevant information from the AMC, as
well as a quarterly report on its activities. They can also dismiss the AMC under
specific condition as per SEBI regulations.

At least half the trustees should be independent persons. The AMC or its
employees cannot act as a trustee. No person who is appointed as a trustee of a mutual
fund can be appointed as a trustee of any other mutual fund unless he is an
independent trustee and prior permission is obtained from the mutual fund in which
he is a trustee.

The trustees are required to submit half-yearly reports to SEBI on the

activities of the mutual fund. The trustees appoint a custodian and supervise their
activities. The trustees can be removed only with prior approval of SEBI.

As per SEBI guidelines, an asset management company is appointed by the

trustees to float the schemes for the mutual fund and manage the funds raised by
selling units under a scheme. The AMC must act as per SEBI guidelines, trust deeds
and management agreement between trustee & the AMC.

32
The Importance of Accounting Knowledge
Mutual funds in India are required to follow the accounting policies laid down in
SEBI (Mutual Fund) Regulations, 2296 and the amendments in 2298. This section of
the workbook summarizes the important Regulations, and periodical budgets.

Net Asset Value (NAV)

A mutual fund is a common investment vehicle where the assets of the fund belong
directly to the investors. The fund does not account for investors' subscriptions as
liabilities or deposits but as Unit Capital. On the other hand, the investments made on
behalf of the investors are reflected on the assets side and are the main constituents of
the balance sheet. There are, however, liabilities of a strictly short-term nature that
may be part of the balance sheet. The fund's Net Assets are therefore defined as the
assets minus the liabilities. As there are many investors in a fund, it is common
practice for mutual funds to compute the share of each investor on the basis of the
value of Net Assets Per Share/Unit, commonly known as the Net Asset Value (NAV).

The following are the regulatory requirements and accounting definitions lay down by
SEBI.
NAV = Net Assets of the scheme / Number of Units Outstanding, i.e. Market value
of investments + Receivables + Other Accrued Income + Other Assets
Accrued Expenses-Other Payables-Other Liabilities
=
No. Of Units Outstanding as at the NAV date

A fund's NAV is affected by four sets of factors:

-- Purchase and sale of investment securities
-- Valuation of all investment securities held
-- Other assets and liabilities, and
-- Units sold or redeemed

Pricing of Units:

Although NAV per share defines the value of the investor's holding in the
fund, the fund may not repurchase the investor's units at the same price as NAV.

33
However, SEBI requires that the fund must ensure that repurchase price is not lower
than 93% of NAV (95% in the case of a closed end fund). On the other side, a fund
may sell new units at a price that is different from the NAV, but the sale price cannot
be higher than 107% of NAV. Also, the difference the repurchase price and the sale
price of the unit is not permitted to exceed 7% of the sale price.

Fees and Expenses:

An AMC may incur many expenses specifically for given schemes, and other
common expenses. In any case, all expenses should be clearly Unidentified and
allocated to the individual schemes. The AMC may charge the scheme with
investment management and advisory fees that are fully disclosed in the offer
document subject to the following limits:

@ 1.25% of the first Rs. 100 crore of weekly average net assets outstanding in the
accounting year, and @ 1% of weekly average net assets in excess of Rs. 100 crore.

For no load schemes, the AMC may charge an additional management fee up to 1%
of weekly average net assets outstanding in the accounting year.

Investment management and advisory fees are subject to the overall ceiling for
expenses.
A. Initial expenses of launching schemes (not to exceed 6% of initial resources raised
under the scheme); and

B. Recurring expenses including:

i. Marketing and selling expenses including agents' commission
ii. Brokerage and transaction costs
iii. Registrar services for transfer of units sold or redeemed
v. Fees and expenses of trustees
v. Audit fees
vi. Custodian fees
vii. Costs related to investor communication

34
 viii. Costs of fund transfers from location to location
ix. Costs of providing account statements and dividend / redemption
cheques and warrants
x. Insurance premium paid by the fund
xi. Winding up costs for terminating a fund or a scheme
xii. Other costs as approved by SEBI

The total expenses charged by the AMC to a scheme, excluding issue or redemption
expenses but including investment management and advisory fees are subject to the
following limits:
 On the first Rs. 100 Crores of average weekly net assets-2.5%
 On the next Rs. 300 Crores of average weekly net assets -2.0%
 On the balance of average weekly net assets-1.75%
 For bond funds, the above percentages are required to be lower by 0.25%

Initial Issue Expenses:

When a scheme is first launched, the AMC will incur significant expenses,
whose benefit will accrue over many years. All expenses cannot, therefore, be
charged to a scheme in the first year itself. SEBI permits "amortization" of initial
expenses as follows:

For a closed-end scheme floated on a 'load' basis, the initial issue expenses shall be
amortized on a weekly basis over the period of scheme. For example, a 5-year (i.e.
260 week) closed-end scheme with initial issue expenses of Rs. 5 lakhs must charge
Rs.1923 (5 lakhs / 260 weeks) every week to the fund. It cannot charge the entire
amount of Rs. 5 lakhs at the time of issue.

For an open-end scheme floated on a 'load' basis, initial issue expenses may be
amortized over a period not exceeding five years. For example, if an open-end scheme
has initial issue expenses of Rs. 10 lakhs, it need not charge this entire amount to the
fund in the year of issue. Instead, it may charge Rs. 2 lakhs (10 lakhs / 5 years) per
year to the fund, thereby spreading the charge of initial issue expenses over a

35
maximum of 5 years. Issue expenses incurred during the life of an open-end scheme
cannot be amortized.

Un amortized portion of initial issue expenses shall be included for NAV calculation,
considered as "other asset". The investment advisory fee cannot be claimed on this
asset. Hence, they have to be excluded while determining the chargeable investment
management / advisory fees. While calculating the maximum amount of chargeable
expenses, the un amortized portion of the initial issue expenses will not be included as
part of the average weekly net assets figure.

Accounting Policies:
Investments are required to be marked to market using market prices. Any unrealized
appreciation cannot be distributed, and provision must be made for the same.
Dividend received by the fund on a share should be recognized, not on the date of
declaration, but on the date the share is quoted on ex-dividend basis. For example, if a
fund owns shares on which dividend is declared on April 5, and the shares are quoted
on ex-dividend basis on April 20, the dividend income will be included by the fund
for distribution/NAV computation only April 20.

In determining gain or loss on sale of investments, the average cost method must be
followed to determine the cost of purchase. This will be applied by security.
Purchase / sale of investments should be recognized on the trade date and not
settlement date
Bonus / rights shares should be recognized only when the original shares are traded
on the stock exchange on an ex-bonus /ex-rights basis
Income receivable on investments, which is accrued, but not received for 12 months
beyond due date, should be provided for, and no further accrual should be made for
such investment
An investment shall be regarded as non-performing if it has provided no returns
through dividend/interest for more than 2years at the end of the accounting year
Investments owned by mutual funds are marked to market. Therefore, the value of
investments appreciates or depreciates based on market fluctuations, which is

36
reflected in the balance sheet. However, this change in value constitutes unrealized
gain/loss. When any investments are actually sold, the proportion of the unrealized
gain / loss that pertains to such investments becomes realized gain/loss. Therefore, at
any given time, the NAV includes realized and unrealized gain/loss on investments.
While SEBI prohibits the distribution of unrealized appreciation on investments,
realized gain in available for distribution.

An open-end scheme sells and repurchases units on the basis of NAV. SEBI
therefore prescribes the use of an equalization account, to ensure that creation /
redemption of units does not change the percentage of income distributed. This
involves the following steps:
- Computation of distributable reserves:
- Income + Realized Gain on Investments- Expenses-Unrealized Losses (unrealized
gains are excluded)

- If distributable reserves are positive, the following percentage is computed:

Distributable Reserve / Units Outstanding

- The above percentage is multiplied with the number of new units sold, and the
equalization account is credited by this amount, if units are sold above par; if the units
are sold below par, the equalization account is debited by this amount. The same
percentage is multiplies with the number of units repurchased, and the equalization
account is debited by this amount if the units are repurchased above par; if the units
are repurchased below par, the equalization account is credited.
- The net balance in the equalization account is transferred to the profit and loss
account. It is only an adjustment to the distributable surplus and does not affect the
net income for the period.

VALUATION
Mutual funds value their investments on a 'mark-to-market' basis with reference to
the date on which they are valued i.e., the valuation date.

Valuation of Traded Securities:

37
Where a security is traded on a stock exchange, it is valued at the last quoted closing
price on the stock exchange where it is "principally traded".
If a security is not traded on any stock exchange on a particular valuation day, the
value at which it was traded on the selected/other stock exchange on the
Earliest previous day may be used, provided such date is not more than 60 days prior
to the valuation date.
Valuation of traded securities, once the market price is obtained as above, is quite
simple. The fund will multiply its current holding in number of shares or bonds by the
applicable market price to get the "mark to market" value.

valuation of Non-traded Securities:

When a security is not traded on any stock exchange for 60 days prior to the
valuation date, it must be treated as non-traded' scrip.
Non-traded securities shall be valued 'in good faith' by the AMC on the basis of
appropriate valuation methods, which shall be periodically reviewed by the trustees
and reported by the auditors as fair and reasonable. The following principles are to be
applied for the valuation of non-traded securities:
Equity instruments: are to be valued on the basis of capitalization of earnings solely
or in combination with its balance sheet Net Asset Value. For this purpose,
capitalization rate will be determined by reference to the price or earning rations of
comparable traded securities with an appropriate discount for lower liquidity to be
used.

Debit instruments: are to be valued on a yield to maturity basis, the capitalization

factor being determined for comparable traded securities with an appropriate discount
for lower liquidity.

Call money, bills purchased: under rediscounting and short term deposits with
banks are to be valued at cost + accrual: other money market instruments at yield at
which they are currently traded; non-traded instruments (not traded for 7 days) will be
valued at cost plus interest accrued till the beginning of the valuation day plus the
difference between redemption value and cost, spread uniformly over the remaining
maturity of the instruments

38
Government Securities: are to be valued at yield to maturity based on
prevailing market rate

Convertible debentures and bonds: non-convertible component is to be

valued as a debt instrument, and convertible as any equity instrument. If after
Conversion, the resultant equity instrument would be traded pari passu with an
existing instrument, which is traded, the value of the latter instrument can be adopted
after an appropriate discount for the non-tradability of the instrument.

RISK INVOLVED IN MUTUAL FUNDS INDUSTRY:

Mutual funds are not free from risk. It is so because basically the mutual funds also
invest their funds in stock markets on shares, which are volatile in nature and are not
risk free, the following risk are inherent in their dealing.
INHERENT RISK FACTORS:

1) Market Risks:
In general there are certain risks associated with the every kind of investment on
shares. They are called market risks. These market risks can be reduced, but cannot be
completely eliminated even by a good investment.

2) Scheme Risks
There are certain risks inherent in the scheme itself. It all depends upon the nature of
the scheme. For instance, in a pure growth scheme, risks are greater.

3) Investment Risks
Whether the mutual fund makes money in shares or loses depends upon the
investment expertise of the Asset Management Company. If the investment advice
goes wrong, the fund has to suffer a lot.

39
4) Business Risks
The corpus of a mutual fund might have been invested in a company’s shares. If the
business of that company suffers any set back, it cannot declare any dividend. It may
even go to the extent of winding up its business.

5) Political Risks
Successive Governments bring with them fancy new economic ideologies and
policies. It is often said that many economic decisions are politically motivated.

PARAMETERS DESCRIPTION

The following parameters were considered for analysis:

 Beta
 Alpha
 Correlation coefficient
 Treynor’s Ratio
 Sharpe’s Ratio
 Jensen’s Ratio

Beta
Beta is a measure of volatility, or systematic risk, of a security or portfolio in
comparison to the market as a whole. Beta measures a stock's volatility, the degree to
which a stock price fluctuates in relation to the overall market. Investment analysts
use the Greek letter beta, ß. It is calculated using regression analysis. A beta of 1
indicates that the security's price will move with the market. A beta greater than 1
indicates that the security's price will be more volatile than the market, and a beta less
than 1 means that it will be less volatile than the market.

40
While standard deviation determines the volatility of a fund according to the disparity
of its returns over a period of time, beta, another useful statistical measure, determines
the volatility, or risk, of a fund in comparison to that of its index.

Investors expecting the market to be bullish may choose funds exhibiting high betas,
which increase investors' chances of beating the market. If an investor expects the
market to be bearish in the near future, the funds that have betas less than 1 are a good
choice because they would be expected to decline less in value than the index. For
example, if a fund had a beta of 0.5 and the S&P 500 declined 6%, the fund would be
expected to decline only 3%. Be aware of the fact that beta by itself is limited and can
be skewed due to factors of other than the market risk affecting the fund's volatility.

Here is a basic guide to various betas:

 Negative beta - A beta less than 0 is possible but highly unlikely. People used
to think that gold and gold stocks should have negative betas because they tended to
do better when the stock market declined, but this hasn't been true overall.

 Beta = 0 - Basically this is cash (assuming no inflation).

 Beta between 0 and 1 - Low-volatility investments, such as utilities, are

usually in this range

 Beta = 1 - This is the same as an index, such as the S&P 500 or some other
index fund.

 Beta greater than 1 - This denotes anything more volatile than the broad-
based index, like a sector fund.

 Beta greater than 100 - This is impossible because the stock would be
expected go to zero on any decline in the stock market. The beta never gets higher
than two to three.

41
The beta value for an index itself is taken as one. Equity funds can have beta values,
which can be above one, less than one or equal to one. By multiplying the beta value
of a fund with the expected percentage movement of an index, the expected
movement in the fund can be determined. Thus if a fund has a beta of 1.2 and the
market is expected to move up by ten per cent, the fund should move by 12 per cent
Similarly if the market loses ten per cent, the fund should lose 12 per cent.

This shows that a fund with a beta of more than one will rise more than the market
and also fall more than market. Clearly, if you'd like to beat the market on the upside,
it is best to invest in a high-beta fund. But you must keep in mind that such a fund will
also fall more than the market on the way down. So, over an entire cycle, returns may
not be much higher than the market.
Similarly, a low-beta fund will rise less than the market on the way up and lose less
on the way down. When safety of investment is important, a fund with a beta of less
than one is a better option. Such a fund may not gain much more than the market on
the upside; it will protect returns better when market falls.

Alpha

A measure of risk, used for mutual funds with regards to their relation and the market.
A positive alpha is the extra return awarded to the investor for taking a risk, instead of
accepting the market return

The formula for alpha is:

Alpha = [ (sum of y) - ((b)(sum of x)) ] / n
n =number of observations (36 mos.)
b = beta of the fund
x = rate of return for the market
y = rate of return for the fund
Alpha measures how much if any of this extra risk helped the fund outperform its
corresponding benchmark. Using beta, alpha's computation compares the fund's
performance to that of the benchmark's risk-adjusted returns and establishes if the
fund's returns outperformed the market's, given the same amount of risk.

42
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.

Standard Deviation

Standard deviation is probably used more than any other measure to describe the risk
of a security (or portfolio of securities). If you read an academic study on investment
performance, chances are that standard deviation will be used to gauge risk. It's not
just a financial tool, though. Standard deviation is one of the most commonly used
statistical tools in the sciences and social sciences. It provides a precise measure of
the amount of variation in any group of numbers--the returns of a mutual fund.

Measure of the dispersion of a set of data from its mean. The more spread apart the
data is, the higher the deviation. Standard deviation is applied to the annual rate of
return of an investment to measure the investment's volatility (risk).

A volatile stock would have a high standard deviation. In mutual funds, the standard
deviation tells us how much the return on the fund is deviating from the expected
normal returns. Standard deviation is a statistical measure of the range of a fund's
performance. When a fund has a high standard deviation, its range of performance has
been very wide, indicating that there is a greater potential for volatility.
Technically speaking, standard deviation provides a quantification of the variance of
the returns of the security, not its risk. After all, a fund with a high standard deviation
of returns is not necessarily "riskier" than one with a low-standard deviation of
returns.

Correlation

Correlation is a useful tool for determining if relationships exist between securities. A

correlation coefficient is the result of a mathematical comparison of how closely
related two variables are.

43
The relationship between two variables is said to be highly correlated if a movement
in one variable results or takes place at the same time as a similar movement in
another variable. A useful feature of correlation analysis is the potential to predict the
movement in one security when another security moves. Sometimes, there are
securities that lead other securities. In other words a change in price in one results in
a later change in price of the other. A high negative correlation means that when a
securities price changes, the other security or indicator or otherwise financial vehicle,
will often move in the opposite direction.

Correlation analysis is a measure of the degree to which a change in the independent

variable will result in a change in the dependent variable. A low correlation
coefficient (e.g., ±0.1) suggests that the relationship between the two variables is
weak or non-existent. A high correlation coefficient (e.g., ±0.80) indicates that the
dependent variable will most likely change when the Independent variable changes.
Correlation can also be used for a study between an indicator and a stock or index to
help determine the predictive abilities of changes in the indicator. Correlation is not
static. In other words, the correlation between two things in the markets does change
over time and so a careful understanding that what has happened in the past may not
predict what will happen in the future should be part of any basis in trading financial
instruments in the market.

PORTFOLIO MEASUREMENT METHODS:

We are interested in discovering if the management of a mutual fund is performing
well; that is, has management done better through its selective buying and selling of
securities than would have been achieved through merely “buying the market” ––
picking a large number of securities randomly and holding them throughout the
period?
The most popular ways of measuring management’s performance are
1. Sharpe’s Performance Measure
2. Treynor’s Performance Measure
3. Jensen’s Performance Measure

SHARPE’S RATIO

44
Sharpes is the summary measure of portfolio performance which properly adjusts
performance for risk. It measures the risk premiums of the portfolio relative to the
total amount of risk in the portfolio.

The Sharpes index is given by:

Sharpe’s Index = (Average return on portfolio – Risk less rate of interest)
(Deviation of returns on portfolio)
Graphifically the index measures the slope of the line emanating from the risk less
rate outward to the portfolio in question. Thus, the Sharpe Index summarizes the risk
and return of a portfolio in a single measure that categorizes the performance of the
fund on a risk-adjusted basis. The larger the value of Sharpe Index the better the
portfolio has performed.

TREYNOR’S RATIO
Treynor’s ratio measures the risk premium of the portfolio, where risk premium
equals the difference between the return of the portfolio and the risk less rate. The risk
premium is related to the amount of systematic risk assumed in the portfolio.
Graphically; the index measures the slope of the line emanating outward from risk
less rate to the portfolio under consideration.
Treynors ratio is given as
(Average return of portfolio –Risk less rate of interest)
Treynor Index = -------------------------------------------------------
Beta coefficient of portfolio

Jensen’s Performance Measure (Michael)

It refers the actual return earned in portfolio and return expected out of portfolio given
its level of risk.
CAPM – is used to calculate the expected return. The difference between the
expected return and act retain can be said the return earned out of the mandatory of
systematic risk.
This excess return refers the manager’s predictive ability and managerial skills.

CAPM
rp = rf + (rm – rf)

45
Differential return is calculated as follows:
p = rp - rp
p =positive ––> Superior returns
p = Negative ––> Unskilled management (worse portfolio)
p = 0 ––> Neutral performance

Higher alpha represents superior performance of a fund and vice versa.

List of Mutual Funds in India

In India, a significant portion of the population is shifting their investment ways towards mutual
funds.

Traditional methods of investment such as gold, real estate, bank deposits, etc., are slowly losing
their popularity. The main reason behind mutual funds garnering attention as a popular investment
vehicle is due to its ability to generate higher returns when compared to the conventional methods
of investment such as the ones mentioned above.

List of mutual fund companies in India

There are 44 asset management companies (AMCs) or mutual fund houses operating
in India. These companies manage the investments of investors to fetch them optimal
returns. Below we have provided a list of mutual fund houses in India:

1. Axis Asset Management Company Ltd.

This AMC launched its first mutual fund in October 2022 and since then the firm has
been able to make its presence in over 90 cities in India. It manages more than 20 lakh
investor accounts and offers around 50 mutual fund schemes in the categories of debt,
equity, hybrid, ETFs (Exchange-Traded Funds), FoFs (Fund of Funds), etc. The
schemes offered by the fund house are given below:

Category Name of the fund

Debt Funds  Axis Banking & PSU Fund

 Axis Liquid Fund
 Axis Gilt Fund
 Axis Corporate Debt Fund
 Axis Dynamic Bond Fund
 Axis Strategic Bond Fund

46
  Axis Credit Risk Fund
 Axis Short Term Fund
 Axis Treasury Advantage Fund

 Axis Ultra Short Term Fund

 Axis Focused 25 Fund

 Axis Bluechip Fund
 Axis Mid Cap Fund
 Axis Multicap Fund
Equity Funds  Axis Growth Opportunities Fund
 Axis Small Cap Fund

 Axis Long Term Equity Fund

 Axis Dynamic Equity Fund

 Axis Arbitrage Fund
 Axis Equity Hybrid Fund
Hybrid Funds  Axis Equity Saver Fund
 Axis Regular Saver Fund

 Axis Triple Advantage Fund

 Axis Gold ETF

 Axis Gold Fund
FoF and ETF
 Axis Nifty ETF

Special Situation Funds Axis Children’s Gift Fund

2. Aditya Birla Sun Life AMC Limited

Touted as one of the 3rd largest AMCs in India in terms of domestic AAUM (Aver-
age Assets Under Management). The firm forms a part of the Aditya Birla Group, a
Fortune 500 Indian multinational and offers 24 schemes in the debt, equity, and hy-
brid categories. Below we have provided the names of the schemes offered by the
AMC:

Category Name of the

Name of the fund
fund

Debt Funds  Aditya Birla Sun Life Savings Fund

 Aditya Birla Sun Life Corporate Bond Fund
 Aditya Birla Sun Life Medium Term Plan
 Aditya Birla Sun Life Credit Risk Fund

47
  Aditya Birla Sun Life Low Duration Fund
 Aditya Birla Sun Life Money Manager Fund
 Aditya Birla Sun Life Banking & PSU Debt Fund
 Aditya Birla Sun Life Dynamic Bond Fund
 Aditya Birla Sun Life Floating Rate Fund

 Aditya Birla Sun Life Short Term Opportunities

Fund

 Aditya Birla Sun Life Tax Relief 96

 Aditya Birla Sun Life Frontline Equity Fund
 Aditya Birla Sun Life Equity Fund
 Aditya Birla Sun Life Equity Advantage Fund
 Aditya Birla Sun Life Pure Value Fund
 Aditya Birla Sun Life Focused Equity Fund
Equity Funds  Aditya Birla Sun Life Arbitrage Fund
 Aditya Birla Sun Life MNC Fund
 Aditya Birla Sun Life Midcap Fund
 Aditya Birla Sun Life Small Cap Fund

 Aditya Birla Sun Life Banking & Financial Ser-

vices Fund

 Aditya Birla Sun Life Equity Hybrid ‘95 Fund

 Aditya Birla Sun Life Balanced Advantage Fund
Hybrid Funds
 Aditya Birla Sun Life Regular Savings Fund

3. Baroda Asset Management India Limited

Previously known as Baroda Pioneer Asset Management Co. Ltd., this AMC is a
wholly owned subsidiary of the Bank of Baroda, India’s second largest public sector
bank. It offers 16 mutual fund schemes in the categories of equity, debt income, and
liquid. We have provided the names of the schemes offered by Baroda Asset Manage-
ment below:

Category Name of the

Name of the fund
fund

Debt Income Funds  Baroda Short Term Bond Fund

 Baroda Short Term Bond Fund
 Baroda Treasury Advantage Fund
 Baroda Income Fund
 Baroda Gilt Fund
 Baroda Conservative Hybrid Fund
 Baroda Dynamic Bond Fund

48
  Baroda Credit Risk Fund

 Baroda Ultra Short Duration Fund

 Baroda Mid-Cap Fund

 Baroda Large Cap Fund
 Baroda ELSS ‘96
 Baroda Multi Cap Fund
Equity Funds  Baroda Hybrid Equity Fund
 Baroda Banking and Financial Services Fund

 Baroda Dynamic Equity Fund

Liquid Funds  Baroda Liquid Fund

4. BNP Paribas Asset Management India Private Limited

This AMC is a part of the BNP Paribas Asset Management, one of the leading asset
managers in the word. It has its presence in 30 countries and in India, it offers 15 mu-
tual fund schemes. The schemes are categorised into debt, equity, and hybrid funds
and the names of the funds have been provided below:

Category Name of the

Name of the fund
fund

 BNP Paribas Flexi Debt Fund

 BNP Paribas Corporate Bond Fund
 BNP Paribas Short Term Fund
Equity Funds  BNP Paribas Low Duration Fund
 BNP Paribas Liquid Fund

 BNP Paribas Medium Term Fund

 BNP Paribas Large Cap Fund

 BNP Paribas Long Term Equity Fund
 BNP Paribas Multi Cap Fund
Equity Funds  BNP Paribas Midcap Fund
 BNP Paribas Focused 25 Equity Fund

 BNP Paribas India Consumption Fund

 BNP Paribas Arbitrage Fund

 BNP Paribas Substantial Equity Hybrid Fund
Hybrid Funds
 BNP Paribas Conservative Hybrid Fund

49
5. BOI AXA Investment Managers Private Limited

The firm is a joint venture between AXA Investment Managers and Bank of India, a
public sector bank. AXA Investment Managers, on the other hand, is a part of the
AXA group, one of the world’s largest financial protection firms. The fund house of-
fers 12 mutual fund schemes, the category and names of which are given below:

Category Name of the

Name of the fund
fund

 BOI AXA Large & Mid Cap Equity Fund

 BOI AXA Tax Advantage Fund
Equity Funds  BOI AXA Manufacturing & Infrastructure Fund

 BOI AXA Small Cap Fund

 BOI AXA Conservative Hybrid Fund

 BOI AXA Equity Debt Rebalancer Fund
 BOI AXA Mid & Small Cap Equity & Debt
Hybrid Funds Fund

 BOI AXA Arbitrage Fund

 BOI AXA Liquid Fund

 BOI AXA Ultra Short Duration Fund
Debt Funds  BOI AXA Short Term Income Fund

 BOI AXA Credit Risk Fund

6. Canara Robeco Asset Management Company Limited

The fund house is a joint venture between public sector lender Canara Bank and
Netherlands-based investment firm, Robeco. The firm was founded in December 1987
and initially was known as Canbank Mutual Fund. The fund house was later renamed
to Canara Robeco Mutual Fund in 2007 and offers 18 schemes in various categories
(equity, debt, hybrid, and ETF). The schemes and their categories have been listed be-
low:

Category Name of the

Name of the fund
fund

Equity Funds  Canara Robeco Infrastructure

 Canara Robeco Equity Diversified Fund

50
  Canara Robeco Emerging Equities
 Canara Robeco Equity Tax Saver Fund
 Canara Robeco Consumer Trends Fund

 Canara Robeco Blue Chip Equity Fund

 Canara Robeco Equity Hybrid Fund

Hybrid Funds
 Canara Robeco Conservative Hybrid Fund

 Canara Robeco Savings Fund

 Canara Robeco Income Fund
 Canara Robeco Gilt Fund
 Canara Robeco Dynamic Bond Fund
Debt Funds  Canara Robeco Corporate Bond Fund
 Canara Robeco Short Duration Fund
 Canara Robeco Ultra Short Term Fund

 Canara Robeco Liquid Fund

 Canara Robeco Gold Savings Fund

Other Funds
 Canara Robeco Gold Exchange Traded Fund

7. DHFL Pramerica Asset Managers Private Limited

The AMC is headquartered in Mumbai and is sponsored by DHFL and Pramerica.

DHFL is one of the leading mortgage finance institutions in India while Pramerica is
the world’s leading financial services groups. The fund offers 22 schemes across the
categories of debt, equity, hybrid, and international FoF. The names of the schemes
have been provided below:

Category Name of the

Name of the fund
fund

 DHFL Pramerica Large Cap Fund

 DHFL Pramerica Diversified Equity Fund
 DHFL Pramerica Midcap Opportunities Fund
Equity Funds  DHFL Pramerica Long Term Equity Fund

 DHFL Pramerica Arbitrage Fund

Hybrid Funds  DHFL Pramerica Hybrid Debt Fund

 DHFL Pramerica Equity Savings Fund

51
  DHFL Pramerica Hybrid Equity Fund

 DHFL Pramerica Insta Cash Fund

 DHFL Pramerica Low Duration Fund
 DHFL Pramerica Ultra Short Term Fund
 DHFL Pramerica Floating Rate Fund
 DHFL Pramerica Short Maturity Fund
 DHFL Pramerica Medium Term Fund
Debt Funds  DHFL Pramerica Dynamic Bond Fund
 DHFL Pramerica Premier Bond Fund
 DHFL Pramerica Credit Risk Fund
 DHFL Pramerica Banking and PSU Debt Fund

 DHFL Pramerica Gilt Fund

 DHFL Pramerica Euro Equity Fund

International FoF  DHFL Pramerica Global Equity Opportunities
Fund

8. DSP Investment Managers Private Limited

The fund house is owned by the DSP Group, one of India’s most respected and oldest
financial services companies. One of the family members of the DSP Group is also a
founding member of the Bombay Stock Exchange. The AMC was previously known
as DSP BlackRock Investment Managers Pvt. Ltd. The list of schemes offered by the
fund house are given below:

Category Name of the fund

 DSP Top 100 Equity Fund

 DSP Equity Fund
 DSP Equity Opportunities Fund
 DSP India T.I.G.E.R Fund
 DSP Small Cap Fund
 DSP Midcap Fund
 DSP Tax Saver Fund
Equity Funds  DSP Natural Resources & New Energy Fund
 DSP Focus Fund
 DSP Dynamic Asset Allocation Fund
 DSP Equity Savings Fund
 DSP Arbitrage Fund
 DSP Healthcare Fund

 DSP Equal Nifty 50 Fund

52
  DSP Equity & Bond Fund
Hybrid Funds
 DSP Regular Savings Fund

 DSP Government Securities Fund

 DSP 10Y G-Sec Fund
 DSP Banking & PSU Debt Fund
 DSP Bond Fund
 DSP Low Duration Fund
 DSP Liquidity Fund
Debt Funds  DSP Ultra Short Fund
 DSP Short Term Fund
 DSP Savings Fund
 DSP Strategic Bond Fund
 DSP Credit Risk Fund

 DSP Corporate Bond Fund

 DSP US Flexible Equity Fund

 DSP World Agriculture Fund
 DSP Global Allocation Fund
International FoFs  DSP World Energy Fund
 DSP World Gold Fund

 DSP World Mining Fund

9. Edelweiss Asset Management Limited

The asset firm is a subsidiary of Edelweiss Financial Services Ltd. and is a part of the
Edelweiss Group. The AMC offers 25 schemes in the categories of equity, fixed in-
come, ETFs, and international funds. The schemes have been listed below:

Category Name of the

Name of the fund
fund

 Edelweiss Arbitrage Fund

 Edelweiss Balanced Arbitrage Fund
 Edelweiss Large Cap Fund
 Edelweiss Long Term Equity Fund
 Edelweiss Multi-Asset Allocation Fund
Equity Funds  Edelweiss Large and Mid Cap Fund
 Edelweiss Equity Savings Fund
 Edelweiss Mid Cap Fund
 Edelweiss Multi-Cap Fund

 Edelweiss Tax Advantage Fund

53

Fixed Income Funds
 Edelweiss Government Securities Fund
 Edelweiss Banking and PSU Debt Fund
 Edelweiss Liquid Fund
 Edelweiss Short Term Fund
 Edelweiss Dynamic Bond Fund
 Edelweiss Corporate Bond Fund

 Edelweiss Low Duration Fund

 Edelweiss ETF-Nifty 50
 Edelweiss ETF-Nifty Bank
ETFs
 Edelweiss ETF-Nifty 100 Quality 30

 Edelweiss ASEAN Equity Offshore Fund

 Edelweiss Europe Dynamic Equity Offshore Fund
 Edelweiss Greater China Equity Offshore Fund
International Funds  Edelweiss US Value Equity Offshore Fund

 Edelweiss Emerging Markets Opportunities Equity

Offshore Fund

10. Essel Finance AMC Limited

The AMC is owned by Essel Finance Wealth Zone Pvt. Ltd. which is a part of the Es -
sel Group, one of the most prominent business houses in India. It offers 8 schemes in
the categories of equity, debt, and hybrid and have been listed below:

Category Name of the fund

 Essel Equity Fund

Equity Funds
 Essel Midcap Fund

 Essel Liquid Fund

 Essel Short Term Fund
Debt Funds  Essel Ultra Short Term Fund

 Essel Income Plus Fund

Hybrid Funds  Essel 3 in 1 Fund

11. Franklin Templeton Asset Management (India) Private Limited

The fund house was established in 1996 and launched its first mutual fund scheme in
September the same year. It offers 37 schemes and we have listed them below:

54
Category Name of the fund

ELSS Funds Franklin India Taxshieldq

 Franklin Build India Fund

 Franklin India Bluechip Fund
 Franklin India Equity Advantage Fund
 Franklin India Equity Fund
 Franklin India Focused Equity Fund
 Franklin India Index Fund - NSE Nifty Plan
Equity Funds  Franklin India Opportunities Fund
 Franklin India Prima Fund
 Franklin India Smaller Companies Fund
 Franklin India Technology Fund
 Franklin Templeton India Equity Income Fund

 Franklin Templeton India Value Fund


 Franklin India Banking & PSU Debt Fund
 Franklin India Corporate Debt Fund
 Franklin India Credit Risk Fund
 Franklin India Dynamic Accrual Fund
Fixed Income  Franklin India Government Securities Fund
Funds  Franklin India Income Opportunities Fund
 Franklin India Low Duration Fund
 Franklin India Savings Fund
 Franklin India Short Term Income Plan

 Franklin India Ultra Short Bond Fund

 Franklin India Debt Hybrid Fund

 Franklin India Dynamic PE Ratio Fund of Funds
 Franklin India Life Stage Fund of Funds - 20s Plan, 30s
Plan, 40s Plan, 50s Plus Floating Rate Plan, 50s Plus Plan
Hybrid Funds  Franklin India Multi-Asset Solution Fund
 Franklin India Pension Plan
 Franklin India Equity Hybrid Fund

 Franklin India Equity Savings Fund

 Franklin Asian Equity Fund

International  Franklin India Feeder-Franklin European Growth Fund
Funds
 Franklin India Feeder-Franklin U.S Opportunities Fund

12. HDFC Asset Management Company Limited

55
This asset management firm is sponsored by the Housing Development Finance Cor-
poration Limited (HDFC Ltd.) and Standard Life Investments Ltd. The fund house
launched its first scheme in July 2001 and at the moment, offers 40 schemes, the cate-
gories and names of which have been given below:

Category Name of the fund

 HDFC TaxSaver Fund

 HDFC Capital Builder Value Fund
 HDFC Equity Fund
 HDFC Focused 30 Fund
 HDFC Growth Opportunities Fund
Equity Funds  HDFC Mid-Cap Opportunities Fund
 HDFC Small Cap Fund
 HDFC Top 100 Fund

 HDFC Infrastructure Fund

 HDFC Banking and PSU Debt Fund

 HDFC Corporate Bond Fund
 HDFC Credit Risk Debt Fund
 HDFC Dynamic Debt Fund
 HDFC Floating Rate Debt Fund
 HDFC Gilt Fund
 HDFC Income Fund
Debt Funds  HDFC Liquid Fund
 HDFC Low Duration Fund
 HDFC Medium Term Debt Fund
 HDFC Money Market Fund
 HDFC Overnight Fund
 HDFC Short Term Debt Fund

 HDFC Ultra Short Term Fund

 HDFC Arbitrage Fund

 HDFC Balanced Advantage Fund
 HDFC Equity Savings Fund
Hybrid Funds  HDFC Hybrid Debt Fund
 HDFC Hybrid Equity Fund

 HDFC Multi-Asset Fund

Gold ETF/Index Funds/  HDFC Index Fund-Sensex Plan

 HDFC Index Fund-Nifty 50 Plan
FoF
 HDFC Nifty 50 ETF
 HDFC Sensex ETF

56
  HDFC Dynamic PE Ratio Fund of Funds
 HDFC Gold ETF

 HDFC Gold Fund

 HDFC Children’s Gift Fund

 HDFC Retirement Savings Fund-Hybrid Equity
Plan
Solution-Oriented Funds  HDFC Retirement Savings Fund Equity Plan

 HDFC Retirement Savings Fund-Hybrid Debt

Plan

13. HDFC Asset Management Company Limited

This AMC is sponsored by HSBC Securities and Capital Markets (India) Private Ltd.
(HSCI), which is a member of the HSBC Group. It offers 20 schemes in the cate-
gories of active equities, fixed income, liquidity, and multi-asset. The name of the
schemes have been provided below:

Category Name of the fund

 HSBC Large Cap Equity Fund

 HSBC Multi Cap Equity Fund
 HSBC Small Cap Equity Fund
 HSBC Infrastructure Equity Fund
 HSBC Tax Saver Equity Fund
Active Equities  HSBC Asia Pacific Dividend Yield Fund
 HSBC Brazil Fund
 HSBC Global Emerging Markets Fund

 HSBC Global Consumer Opportunities Fund

 HSBC Dynamic Asset Allocation Fund

 HSBC Regular Savings Fund
 HSBC Equity Hybrid Fund
Multi-Asset  HSBC Managed Solutions India - Growth
 HSBC Managed Solutions India - Moderate

 HSBC Managed Solutions India - Conservative

 HSBC Debt Fund

 HSBC Short Duration Fund
Fixed Income  HSBC Low Duration Fund

 HSBC Flexi Debt Fund

57
Liquid Funds  HSBC Cash Fund

14.ICICI Prudential Asset Management Company Limited

This AMC is a joint venture between India’s largest private lender, ICICI Bank and
UK-based financial services firm, Prudential Plc. 59 schemes are offered by the fund
house and they are as follows:

Category Name of the fund

 ICICI Prudential Bluechip Fund

 ICICI Prudential Value Discovery Fund
 ICICI Prudential Long Term Equity Fund (Tax Sav-
ing)
 ICICI Prudential Infrastructure Fund
 ICICI Prudential Pharma Healthcare and Diagnostics
Fund
 ICICI Prudential Multicap Fund
 ICICI Prudential Technology Fund
 ICICI Prudential Large & Mid Cap Fund
Equity Funds  ICICI Prudential US Bluechip Equity Fund
 ICICI Prudential Exports & Services Fund
 ICICI Prudential MidCap Fund
 ICICI Prudential Dividend Yield Equity Fund
 ICICI Prudential FMCG Fund
 ICICI Prudential Small Cap Fund
 ICICI Prudential Focused Equity Fund

 ICICI Prudential Banking and Financial Services

Fund

 ICICI Prudential Regular Savings Fund

 ICICI Prudential Equity & Debt Fund
 ICICI Prudential Equity-Arbitrage Fund
Hybrid Funds  ICICI Prudential Multi-Asset Fund
 ICICI Prudential Equity Savings Fund

 ICICI Prudential Balanced Advantage Fund

Debt Funds  ICICI Prudential Savings Fund

 ICICI Prudential Floating Interest Fund
 ICICI Prudential Corporate Bond Fund
 ICICI Prudential Liquid Fund
 ICICI Prudential Short Term Fund
 ICICI Prudential Money Market Fund
 ICICI Prudential Long Term Bond Fund

58
  ICICI Prudential All Seasons Bond Fund
 ICICI Prudential Medium Term Bond Fund
 ICICI Prudential Gilt Fund
 ICICI Prudential Bond Fund
 ICICI Prudential Banking & PSU Debt Fund
 ICICI Prudential Constant Maturity Gilt Fund
 ICICI Prudential Ultra Short Term Fund

 ICICI Prudential Credit Risk Fund

Solution-Oriented
 ICICI Prudential Child Care Plan
Funds

 ICICI Prudential Nifty ETF

 ICICI Prudential Sensex ETF
 ICICI Prudential Midcap Select ETF
 ICICI Prudential Nifty 100 ETF
 ICICI Prudential Nifty Low Vol 30 ETF
 ICICI Prudential NV20 ETF
 ICICI Prudential Gold ETF
 Bharat 22 ETF
 ICICI Prudential S&P BSE 500 ETF
 ICICI Prudential Advisor Series-Debt Management
Fund
 ICICI Prudential Global Stable Equity Fund
ETFs  ICICI Prudential Sensex Index Fund
 ICICI Prudential Advisor Series-Passive Strategy
Fund
 ICICI Prudential Advisor Series-Conservative Fund
 ICICI Prudential Regular Gold Savings Fund
 ICICI Prudential Nifty Next 50 Index Fund
 ICICI Prudential Nifty Index Fund
 ICICI Prudential Advisor Series-Thematic Fund
 ICICI Prudential Advisor Series-Hybrid Fund
 ICICI Prudential Nifty Next 50 ETF

 ICICI Prudential Liquid ETF

15.IDBI Asset Management Ltd.

This AMC is sponsored by IDBI Bank Ltd. and was established on 25 January 2010.
The fund house offers 22 schemes in the categories of debt, equity, hybrid, and gold.
The names of the schemes have been given below:

Category Name of the fund

59
  IDBI Dividend Yield Fund
 IDBI Long Term Value Fund
 IDBI Banking & Financial Services Fund
 IDBI Focused 30 Equity Fund
 IDBI Small Cap Fund
 IDBI Midcap Fund
Equity Funds  IDBI Diversified Equity Fund
 IDBI Equity Advantage Fund
 IDBI India Top 100 Equity Fund
 IDBI Nifty Junior Index Fund
 IDBI Nifty Index Fund

 IDBI Dividend Yield Fund

 IDBI Hybrid Equity Fund

Hybrid Funds
 IDBI Equity Savings Fund

 IDBI Credit Risk Fund

 IDBI Gilt Fund
 IDBI Dynamic Bond Fund
Debt Funds  IDBI Short Term Bond Fund
 IDBI Ultra Short Term Fund

 IDBI Liquid Fund

 IDBI Gold Exchange Traded Fund

Gold Funds
 IDBI Gold Fund

16.IDFC Asset Management Company Limited

This fund house was set up in the year 2000 and in terms of AUM (Assets Under
Management), it is one of India’s largest fund houses. The firm is sponsored by IDFC
Ltd. and offers 34 schemes in various categories. The schemes have been listed be-
low:

Category Name of the fund

Equity Funds  IDFC Sterling Value Fund

 IDFC Tax Advantage Fund
 IDFC Multi Cap Fund
 IDFC Core Equity Fund
 IDFC Infrastructure Fund
 IDFC Nifty Fund
 IDFC Focused Equity Fund

60
  IDFC Large Cap Fund

 IDFC Arbitrage Fund

 IDFC Government Securities Fund-Constant Maturity Plan

 IDFC Government Securities Fund-IP
 IDFC Dynamic Bond Fund
 IDFC Dynamic Bond Fund-Income Plan
 IDFC Low Duration Fund
 IDFC All Seasons Bond Fund
Debt Funds  IDFC Bond Fund-Medium Term Plan
 IDFC Bond Fund - Short Term Plan
 IDFC Cash Fund
 IDFC Banking and PSU Debt Fund

 IDFC Money Manager Fund

1. IDFC Asset Allocation Fund of Funds-Aggressive Plan

2. IDFC Asset Allocation Fund of Funds-Moderate Plan
3. IDFC Regular Savings Fund
Hybrid 4. IDFC Asset Allocation Fund of Funds-Conservative Plan
Funds 5. IDFC Equity Savings Fund
6. IDFC Hybrid Equity Fund

7. IDFC Dynamic Equity Fund

 IDFC Nifty ETF

ETFs
 IDFC Sensex ETF

17.IIFCL Asset Management Co. Ltd.

This fund house was set up as a trust on 17 August 2012 by the India Infrastructure
Finance Company Ltd. (IIFCL), one of India’s top-ranked institutions in the infra-
structure sector. The firm offers only two schemes, both of which are close-ended
which means investors can only invest during a specified period. The schemes are
named as IIFCL Mutual Fund Infrastructure Debt Fund Series I and IIFCL Mutual
Fund Infrastructure Debt Fund Series II. The IIFCL Mutual Fund Infrastructure Debt
Fund Series I was open for subscription from 31 December 2013 to 9 February 2014.
Series II of the same scheme was open for subscription from 31 March 2017 to 12
April 2017.

18.IIFL Asset Management Ltd.Previously known as India Infoline Asset Manage-

ment Co. Ltd., this AMC is sponsored by IIFL Wealth Management Limited (IIFLW),
which is also a mutual funds distributor. The fund house offers only 4 schemes in the

61
categories of equity, fixed income, and liquid. The names of the schemes are IIFL Fo-
cused Equity Fund (equity), IIFL Capital Enhancer Fund Series I (subscription now
closed, IIFL Liquid Fund (liquid), and IIFL Dynamic Bond Fund (fixed income).

19.IL&FS Infra Asset Management LimitedIt is the AMC responsible for manag-
ing the IL&FS Infrastructure Debt Fund (IIDF). The fund was launched in partnership
with General Insurance Corporation of India (GIC), Life Insurance Corporation of In-
dia (LIC), National Insurance Co. Ltd. (NIC), and United India Insurance Company
Limited (UII). The fund targets banking institutions, foreign investors, pension funds,
insurance firms, sovereign wealth funds, etc., as its investors.

20.Indiabulls Asset Management Company Ltd.This AMC is sponsored by Indiab-

ulls Housing Finance Limited, one of the leading financial services firms in India. The
fund house offers 10 schemes in the debt and equity categories. The list of the
schemes are as follows:

Category Name of the fund

 Indiabulls Blue Chip Fund

 Indiabulls Arbitrage Fund
Equity Funds  Indiabulls Value Discovery Fund

 Indiabulls Tax Savings Fund

 Indiabulls Ultra Short Term Fund

 Indiabulls Short Term Fund
 Indiabulls Income Fund
Debt Funds  Indiabulls Savings Income Fund

 Indiabulls Savings Fund

21.Invesco Asset Management (India) Private Limited

It is a leading global investment firm that serves clients in over 120 countries. The
firm offers 28 schemes in the equity, fixed income, hybrid, fund of funds, and ETFs.
The names of the schemes along with its categories are given below:

Category Name of the fund

Equity Funds  Invesco India Contra Fund

 Invesco India Financial Services Fund
 Invesco India Growth Opportunities Fund
 Invesco India Infrastructure Fund

62
  Invesco India Largecap Fund
 Invesco India Midcap Fund
 Invesco India Multicap Fund
 Invesco India PSU Equity Fund
 Invesco India Smallcap Fund

 Invesco India Tax Plan

 Invesco India Banking & PSU Debt Fund

 Invesco India Corporate Bond Fund
 Invesco India Credit Risk Fund
 Invesco India Gilt Fund
Fixed Income  Invesco India Liquid Fund
Funds  Invesco India Money Market Fund
 Invesco India Short Term Fund
 Invesco India Treasury Advantage Fund

 Invesco India Ultra Short Term Fund

 Invesco India Arbitrage Fund

 Invesco India Dynamic Equity Fund
Hybrid Funds  Invesco India Equity and Bond Fund

 Invesco India Regular Savings Fund

 Invesco India Feeder-Invesco Global Equity Income

Fund
 Invesco India Feeder-Invesco Pan European Equity
Fund of Funds Fund

 Invesco India Gold Fund

 Invesco India Gold Exchange Traded Fund

ETFs
 Invesco India Nifty Exchange Traded Fund

22.ITI Asset Management Limited

The asset management firm is owned by Investment Trust of India (ITI), a financial
services firm incorporated in 1991. Some of the schemes offered by the firm are given
below:

Category Name of the fund

Equity Funds ITI Mutual Fund Equity Savings Advantage Fund

63
Fixed Income Funds ITI Mutual Fund Bond Fund

Liquid Funds ITI MF Liquid Fund

Offshore Fund of Funds ITI Mutual Fund ASEAN Equity Off-shore Fund

23.JM Financial Asset Management Limited

The AMC is wholly-owned by JM Financial Ltd., which is a part of the JM Financial

Group. The firm offers 15 schemes in various categories and they have been listed be-
low along with the names of the schemes.

Category Name of the fund

 JM Equity Hybrid Fund

 JM Value Fund
 JM Core 11 Fund
Equity Funds  JM Large Cap Fund
 JM Tax Gain Fund

 JM Multi Cap Fund

Arbitrage Fund JM Arbitrage Fund

 JM Dynamic Debt Fund

 JM G-Sec Fund
 JM Income Fund
 JM Low Duration Fund
Debt Funds  JM Money Market Fund
 JM Short Term Fund

 JM Ultra Short Duration Fund

Liquid Fund JM Liquid Fund

24.Kotak Mahindra Asset Management Company Limited (KMAMCL)The

AMC is wholly-owned by Kotak Mahindra Bank Limited (KMBL) and commenced
its operations in December 1998. The fund house has its

Fund Category Name of the Fund

Equity Funds  Kotak Standard Multicap Fund

64
  Kotak Emerging Equity Scheme
 Kotak Bluechip Fund
 Kotak Equity Opportunities Fund
 Kotak Small Cap Fund
 Kotak India EQ Contra Fund
 Kotak Infrastructure & Economic Reform Fund
 Kotak India Growth Fund Series 4,5, and 7

 Kotak Tax Saver Fund

 Kotak Balanced Advantage Fund

 Kotak Equity Hybrid
 Kotak Debt Hybrid
Hybrid Funds  Kotak Equity Arbitrage Fund

 Kotak Equity Savings Fund

 Kotak Low Duration Fund

 Kotak Dynamic Bond Fund
 Kotak Bond Short Term Plan
 Kotak Savings Fund
 Kotak Credit Risk Fund
 Kotak Money Market Scheme
 Kotak Medium Term Fund
Debt Funds  Kotak Bond Fund
 Kotak Mahindra Gilt Unit Scheme - 98 Investment Plan
 Kotak Banking & PSU Debt Fund
 Kotak Quarterly Interval Plan - Series 12
 Kotak FMP Series
 Kotak Capital Protection Oriented Series 1, 2, 3, and 4

 Kotak Corporate Bond Fund

Liquid Funds Kotak Mahindra Liquid Scheme

 Kotak Gold ETF

 Kotak PSU Bank ETF
 Kotak Nifty ETF
 Kotak Sensex ETF
ETFs  Kotak Banking ETF
 Kotak NV 20 ETF

 Kotak INAV

Fund of Funds 
 Kotak Asset Allocator Fund
 Kotak Gold Fund

65
  Kotak World Gold Fund
 Kotak US Equity Fund

 Kotak Global Emerging Market Fund

presence in 80 cities and offers 46 schemes in various categories. The schemes have
been listed below.

25.L&T Investment Management Limited

This fund house is sponsored by L&T Financial Services and offers 28 schemes. Be-
low we have provided the names of the schemes offered by the fund house.

Fund Category Name of the Fund

 L&T Emerging Businesses Fund

 L&T Focused Equity Fund
 L&T Equity Fund
 L&T Large & MidCap Fund
 L&T Business Cycles Fund
 L&T India Large Cap Fund
Equity Funds  L&T Midcap Fund
 L&T India Value Fund
 L&T Tax Advantage Fund
 L&T Infrastructure Fund

 L&T Long Term Advantage Fund I

 L&T Cash Fund

 L&T Resurgent India Bond Fund
 L&T Liquid Fund
 L&T Ultra Short Term Fund
 L&T Low Duration Fund
 L&T Banking & PSU Debt Fund
Fixed Income Funds  L&T Credit Risk Fund
 L&T Short Term Bond Fund
 L&T Money Market Fund
 L&T Gilt Fund
 L&T Triple Ace Bond Fund

 L&T Flexi Bond Fund

Hybrid Funds  L&T Hybrid Equity Fund

 L&T Conservative Hybrid Fund
 L&T Dynamic Equity Fund

66
  L&T Arbitrage Opportunities Fund

 L&T Equity Savings Fund

26.LIC Mutual Fund Asset Management Limited

This AMC was set up by the Life Insurance Corporation of India (LIC), the world’s
largest life insurer, on 20 April 1989. It offers 22 schemes in various categories and
they have been listed below:

Fund Category Name of the Fund

 LIC MF Banking and Financial Services Fund

 LIC MF Multicap Fund
 LIC MF Large Cap Fund
Equity Funds  LIC MF Infrastructure Fund
 LIC MF Large & Mid Cap Fund

 LIC MF Tax Plan

 LIC MF Bond Fund

 LIC MF Banking & PSU Debt Fund
 LIC MF G-Sec Fund
Debt Funds  LIC MF Savings Fund

 LIC MF Liquid Fund

 LIC MF Equity Hybrid Fund

 LIC MF Debt Hybrid Fund
Hybrid Funds  LIC MF Unit Linked Insurance Scheme

 LIC MF Arbitrage Fund

Solution-oriented Funds LIC MF Children’s Gift Fund

 LIC MF Exchange Traded Fund-Nifty 100

 LIC MF Exchange Traded Fund-Nifty 50
 LIC MF Exchange Traded Fund-Sensex
ETFs and Index Funds  LIC MF G-Sec Long Term Exchange Traded Fund
 LIC MF Index Fund Nifty

 LIC MF Index Fund Sensex

27.Mahindra Asset Management Company Pvt. Ltd.

67
The AMC is wholly owned by Mahindra and Mahindra Financial Services Limited
(MMFSL) and was established on 29 September 2015. The fund house offers 8
schemes in the categories of equity, debt, ELSS, and liquid. The names of the
schemes have been provided below:

Name of the Fund

 Mahindra Rural Bharat and Consumption Yojana

 Mahindra Unnati Emerging Business Yojana
Equity Funds  Mahindra Dhan Sanchay Equity Savings Yojana

 Mahindra Mutual Fund Badhat Yojana

 Mahindra Credit Risk Yojana

Debt Funds
 Mahindra Low Duration Bachat Yojana

ELSS Mahindra Mutual Fund Kar Bachat Yojana

Liquid Funds Mahindra Liquid Fund

28.Mirae Asset Global Investments (India) Pvt. Ltd.The fund house is sponsored
by Mirae Asset Global Investments Co. Limited, South Korea and was set up in India
in November 2007. 12 schemes are offered by the asset firm in various categories of
equity, thematic, hybrid, fixed income, tax savings, etc., and they have been listed be-
low.

Fund Category Name of the Fund

 Mirae Asset India Equity Fund

Equity Funds
 Mirae Asset Emerging Bluechip Fund

 Mirae Asset Healthcare Fund

Thematic Funds
 Mirae Asset Great Consumer Fund

 Mirae Asset Short Term Fund

 Mirae Asset Dynamic Bond Fund
Fixed Income Funds  Mirae Asset Cash Management Fund

 Mirae Asset Savings Fund

68
 1. Mirae Asset Equity Savings Fund
Hybrid Funds
2. Mirae Asset Hybrid Equity Fund

Tax Saving Funds Mirae Asset Tax Saver Fund

Alternate Funds Mirae Asset Nifty 50 ETF

29.Motilal Oswal Asset Management Company LimitedThe AMC was incorpo-

rated on 14 November 2008 and its promoter is Motilal Oswal Financial Services
Limited (MOFSL), an NBFC (Non-Banking Financial Company). The fund house of-
fers 12 schemes and they have been listed below:

Fund Category Name of the Fund

 MOSt Focused 25 Fund

 MOSt Midcap 30 Fund
Equity Funds  MOSt Focused Multicap 35 Fund

 Motilal Oswal Long Term Equity Fund

Debt Fund Motilal Oswal Ultra Short Term Fund

Liquid Fund Motilal Oswal Liquid Fund

 Motilal Oswal M50 ETF

 Motilal Oswal Midcap 100 ETF
ETFs
 Motilal Oswal Nasdaq 100 ETF

Fund of Funds Motilal Oswal Nasdaq 100 Fund of Fund

1. Motilal Oswal Dynamic Fund

Hybrid Fund
2. Motilal Oswal Equity Hybrid Fund

30.PPFAS Asset Management Pvt. Ltd.The AMC is sponsored by Parag Parikh Fi-
nancial Advisory Services Pvt. Ltd., an investment advisory firm. The fund house was
established in May 2013 and at the moment offers only 2 mutual fund schemes -
Parag Parikh Long Term Equity Fund and Parag Parikh Liquid Fund.

31.Principal Asset Management Pvt. Ltd.The AMC is a part of the Principal Finan-
cial Group, a leading global investment manager headquartered in US. The fund

69
house began operating in India in the year 2000 and at the moment serves more than 5
lakh customers. The investment firm offers 22 schemes and they have been listed be-
low:

Fund Category Name of the Fund

 Principal Emerging Bluechip Fund

 Principal Multicap Growth Fund
 Principal Tax Savings Fund
 Principal Dividend Yield Fund
Equity Funds  Principal Focused Multicap Fund
 Principal Nifty 100 Equal Weight Fund

 Principal Personal Tax Saver Fund

 Principal Hybrid Equity Fund

 Principal Equity Savings Fund
Hybrid Funds  Principal Balanced Advantage Fund

 Principal Arbitrage Fund

 Principal Low Duration Fund

 Principal Credit Risk Fund
 Principal Short Term Debt Fund
 Principal Ultra Short Term Fund
Debt Funds  Principal Cash Management Fund
 Principal Corporate Bond Fund

 Principal Dynamic Bond Fund

 Principal Retirement Savings Fund Progressive Plan

 Principal Retirement Savings Fund Moderate Plan
Solution-oriented
Funds  Principal Retirement Savings Fund Conservative
Plan

Fund of Funds Principal Global Opportunities Fund

32.Quant Money Managers LimitedPreviously known as Escorts Asset Manage-

ment Ltd., this investment firm was incorporated on 12 December 1995 but received
approval from the Securities and Exchange Board of India (SEBI) to function as an
AMC only in 2017. The AMC offers 13 schemes under various categories and they
have been provided below:

70
Fund Category Name of the Fund

 Quant Active Fund

 Quant Large & Midcap Fund
 Quant Infrastructure Fund
Equity Funds  Quant Focused Fund
 Quant Consumption Fund

 Quant Midcap Fund

ELSS Quant Tax Plan

 Quant Liquid Plan

 Quant Ultra Short Duration Plan
 Quant Dynamic Bond Fund
Debt Funds  Quant Unconstrained Fund

 Quant Small Cap Fund

Balance Funds Quant Absolute Fund

33.Quantum Asset Management Company Private LimitedThe fund house is

sponsored by Quantum Advisors Private Limited, the first institutional equity research
firm in India. The AMC offers 9 schemes in various categories of equity, debt, gold,
and multi asset. The schemes offered by Quantum AMC have been listed below:

Fund Category Name of the Fund

 Quantum Long Term Equity Value Fund

 Quantum Tax Saving Fund
Equity Funds  Quantum Equity Fund of Funds

 Quantum Nifty ETF

Multi Asset Funds Quantum Multi Asset Fund

 Quantum Liquid Fund

Debt Funds
 Quantum Dynamic Bond Fund

 Quantum Gold Fund ETF

Gold Funds
 Quantum Gold Savings Fund

71
34.Reliance Nippon Life Asset Management Limited

This fund house was earlier known as Reliance Capital Asset Management Limited
and is promoted by Nippon Life Insurance Company and Reliance Capital Ltd. Nip-
pon Life Insurance Company is a Japan-based life insurer while Reliance Capital Ltd.
is an NBFC (Non-Banking Financial Company) registered with the RBI. The AMC
offers 38 schemes in the equity, debt, gold, and liquid categories. The list of schemes
along with the categories, have been provided below:

Fund Category Name of the Fund

 Reliance Vision Fund

 Reliance Large Cap Fund
 Reliance Quant Fund
 Reliance Balanced Advantage Fund
 Reliance Index Fund - Nifty Plan
 Reliance Index Fund - Sensex Plan
 Reliance Growth Fund
 Reliance Focused Equity Fund
 Reliance Small Cap Fund
 Reliance Value Fund
 Reliance Multi Cap Fund
Equity Funds  Reliance Banking Fund
 Reliance Power & Infra Fund
 Reliance Pharma Fund
 Reliance Consumption Fund
 Reliance Tax Saver Fund
 Reliance Equity Hybrid Fund
 Reliance Arbitrage Fund
 Reliance Japan Equity Fund
 Reliance Equity Savings Fund

 Reliance US Equity Opportunities Fund

 Reliance Liquid Fund

Liquid Funds
 Reliance Overnight Fund

Debt Funds  Reliance Floating Rate Fund

 Reliance Low Duration Fund
 Reliance Prime Debt Fund
 Reliance Short Term Fund
 Reliance Credit Risk Fund
 Reliance Income Fund
 Reliance Dynamic Bond Fund
 Reliance Gilt Securities Fund

72
  Reliance Hybrid Bond Fund
 Reliance Money Market Fund
 Reliance Ultra Short Duration Fund
 Reliance Strategic Debt Fund
 Reliance Banking & PSU Debt Fund

 Reliance Nivesh Lakshya Fund

Gold Funds Reliance Gold Savings Fund

35.Sahara Asset Management Company Private LimitedThe AMC is sponsored

by the Sahara India Financial Corporation Limited (SIFCL), a part of the Sahara India
Group. Established on 7 August 1987, this fund house offers 16 schemes in categories
of debt and equity. The schemes have been listed below:

Fund Category Fund Category

 Sahara Tax Gain (ELSS)

 Sahara Growth Fund
 Sahara Wealth Plus Fund
 Sahara Infrastructure Fund
 Sahara Midcap Fund
Equity Funds  Sahara Banking & Financial Services Fund
 Sahara Power & Natural Resources Fund
 Sahara R.E.A.L Fund
 Sahara Super 20 Fund

 Sahara Star Value Fund

 Sahara Income Fund

 Sahara Classic Fund
 Sahara Liquid Fund
Debt Funds  Sahara Interval Fund Quarterly Plan - Series I
 Sahara Gilt Fund

 Sahara Short Term Bond Fund

36.SBI Funds Management Private Limited

The AMC acts as the fund manager to SBI Mutual Fund, a joint venture between In-
dia’s largest bank, State Bank of India (SBI) and France-based investment firm,
AMUNDI. The fund house offers 49 schemes in the categories of equity, debt, hybrid,
ETFs, etc. The categories and names of the schemes have been given below:

73
Fund Category Name of the Fund

74
  SBI Magnum Midcap Fund
 SBI Magnum Multicap Fund
 SBI Bluechip Fund
 SBI Magnum Equity ESG Fund
 SBI Large & Midcap Fund
 SBI Magnum Taxgain Scheme
 SBI Magnum Global Fund
 SBI Consumption Opportunities Fund
 SBI Technology Opportunities Fund
Equity Funds  SBI Healthcare Opportunities Fund
 SBI Contra Fund
 SBI Focused Equity Fund
 SBI Magnum Comma Fund
 SBI Infrastructure Fund
 SBI PSU Fund
 SBI Small Cap Fund

 SBI Banking & Financial Services Fund

 SBI Magnum Income Fund

 SBI Overnight Fund
 SBI Magnum Medium Duration Fund
 SBI Liquid Fund
 SBI Dynamic Bond Fund
 SBI Magnum Ultra Short Duration Fund
 SBI Magnum Constant Maturity Fund
Debt Funds  SBI Magnum Low Duration Fund
 SBI Short Term Debt Fund
 SBI Magnum Gilt Fund
 SBI Credit Risk Fund
 SBI Savings Fund
 SBI Banking and PSU Fund

 SBI Debt Fund Series C - 15 (91 Days)

 SBI Equity Hybrid Fund

 SBI Debt Hybrid Fund
 SBI Multi Asset Allocation Fund
Hybrid Funds  SBI Arbitrage Opportunities Fund
 SBI Dynamic Asset Allocation Fund

 SBI Equity Savings Fund

Solution-oriented Schemes SBI Magnum Children’s Benefit Fund

ETF/Gold Fund  SBI Nifty Index Fund

 SBI Gold Fund

75
  SBI - ETF Sensex
 SBI - ETF Nifty Next 50
 SBI - ETF Nifty Bank
 SBI - ETF BSE 100
 SBI - ETF Nifty 50
 SBI - ETF 10 Year Gilt
 SBI - ETF Sensex Next 50

 SBI - ETF Quality

37.Shriram Asset Management Co. Ltd.

The asset management firm is a part of Chennai-based Shriram conglomerate and

commenced operations in December 1994. It is sponsored by Shriram Credit Com-
pany Limited (SCCL), an NBFC registered with RBI. At present, the company offers
only 3 mutual fund schemes, namely Shriram Multicap Fund, Shriram Hybrid Equity
Fund, and Shriram Long Term Equity Fund.

38.SREI Mutual Fund Asset Management Pvt. Ltd.

This fund house is sponsored by Srei Infrastructure Finance Ltd. and launched its mu-
tual fund business in 2012. The AMC offers only one mutual fund scheme, the Infra-
structure Debt Funds Mutual Fund (IDF – MF) which invests in debt securities of
firms in the infrastructure sector.SBI ETF Gold

39.Sundaram Asset Management Company LimitedThe AMC is a wholly-owned

subsidiary of Sundaram Finance Ltd., one of the oldest NBFCs in India. It offers 22
open-ended schemes in various categories and 11 close-ended schemes. The names of
the schemes and its categories have been listed below:

Fund Category Name of the Fund

 Sundaram Select Focus

 Sundaram Large and Midcap Fund
 Sundaram Multi Asset Fund
 Sundaram Mid Cap Fund
 Sundaram Small Cap Fund
 Sundaram Diversified Equity A Long Term Tax Saver
Equity Funds Fund
 Sundaram Rural and Consumption Fund
 Sundaram Financial Services Opportunities
 Sundaram Infrastructure Advantage Fund

 Sundaram Services Fund

76
  Sundaram Money Fund
 Sundaram Money Market Fund
 Sundaram Low Duration Fund
 Sundaram Banking & PSU Debt Fund
Fixed Income
 Sundaram Short Term Credit Risk Fund
Funds  Sundaram Short Term Debt Fund
 Sundaram Corporate Bond Fund

 Sundaram Medium Term Bond Fund

 Sundaram Equity Hybrid Fund

Hybrid Fund
 Sundaram Debt Oriented Hybrid Fund

 Sundaram Global Advantage Fund

FoF/Index Fund
 Sundaram Smart Nifty 100 Equal Weight Fund

All the above given schemes are open ended. Close ended schemes offered by Sun-
daram Mutual Fund have been listed below:

 Sundaram Top 100

 Sundaram Value Fund
 Sundaram Select Small Cap
 Sundaram Select Micro Cap
 Sundaram Long Term Tax
 Sundaram World Brand Fund
 Sundaram Emerging Small Cap Series
 Sundaram Multi Cap Series
 Sundaram Fixed Term Plans

77
 CHAPTER-III
INDUSTRY PROFILE

&

COMPANY PROFILE

INDUSTRY PROFILE

The first introduction of a mutual fund in India occurred in 1963, when the Government of
India launched Unit Trust of India (UTI).[1] UTI enjoyed a monopoly in the Indian mutual fund
market until 1987, when a host of other government-controlled Indian financial companies
established their own funds, including State Bank of India, Canara Bank and by Punjab National
Bank.

Mutual funds are an under-tapped market in India

Despite being available in the market,[2] less than 10% of Indian households have invested in
mutual funds. A recent report on Mutual Fund Investments in India published by research and
analytics firm, Boston Analytics, suggests investors are holding back from putting their money
into mutual funds due to their perceived high risk and a lack of information on how mutual funds
work.[3] There are 46 Mutual Funds as of June 2013.[4]

The primary reason for not investing appears to be correlated with city size. Among respondents
with a high savings rate, close to 40% of those who live in metros and Tier I cities considered
such investments to be very risky, whereas 33% of those in Tier II cities said they did not know
how or where to invest in such assets.

78
Online
Customers can buy mutual funds online via the corresponding asset management company's
website or via brokers. There are a number of new platforms that have come which offer direct
mutual funds in their platform. Subscribers can buy mutual funds from these platforms. Direct
mutual funds provide better returns, generally between .5% to 1.5% more than their regular
counterparts. This is due to the fact that brokers charges are excluded from the returns. A 1%
deduction from a return of 12% from mutual funds, leads to a 8.33% lesser return to the investor,
which is a huge amount.

Offline
Most of the asset management company have an offline distribution network. These distributors
mainly sell regular mutual funds which carry some commission on it. FundsIndia, NJ, Prudent,
QFund are some of the popular distributors in India.

Average assets under management

Assets under management (AUM) is a financial term denoting the market value of all the funds
being managed by a financial institution (a mutual fund, hedge fund, private equity firm, venture
capital firm, or brokerage house) on behalf of its clients, investors, partners, depositors, etc.

The average assets under management of all mutual funds in India for the quarter Dec 2015 to
Mar 2016(in ₹ Lakh) is given below:

QAAUM Prev Inc/Dec

Mutual Fund Total
AUM (₹ QAAUM (₹ Percentage
Name Schemes
Lakh.) (₹ Lakh.) Lakh.)

Axis Asset
Management 263 3776454.37 3456348.88 320105 9%
Company

Baroda Pioneer
Asset Management 111 965630.33 925542.12 40132 4%
Company

79
 QAAUM Prev Inc/Dec
Mutual Fund Total
AUM (₹ QAAUM (₹ Percentage
Name Schemes
Lakh.) (₹ Lakh.) Lakh.)

Birla Sun Life

Asset Management 806 13678510.7 13684493.34 5312 0%
Company

BNP Paribas Asset

Management 114 509706.79 500795.21 9209 2%
Company

BOI AXA Asset

Management 76 238501.41 242767.91 2887 1%
Company

Canara Robeco
Asset Management 142 804326.86 751779.86 52627 7%
Company

DHFL Pramerica
Asset Management 491 2598683.24 216345 -80979 -37%
Company

DSP Asset
Management 398 4015131.25 3918267.17 96865 2%
Company

Edelweiss Asset
Management 70 167774.29 163236.28 4538 3%
Company

80
 QAAUM Prev Inc/Dec
Mutual Fund Total
AUM (₹ QAAUM (₹ Percentage
Name Schemes
Lakh.) (₹ Lakh.) Lakh.)

Escorts Asset
Management 60 28559.18 29222.27 -663 -2%
Company

Franklin
Templeton Asset
200 6784076.49 7172216.54 -384257 -5%
Management
Company

Goldman Sachs
Asset Management 18 610139.99 685179.35 -75039 -11%
Company

HDFC Asset
Management 1173 17608456.44 17866622.24 -256390 -1%
Company

HSBC Global
Asset Management 155 790382.19 837762.82 -47151 -6%
Company

ICICI Prudential
Asset Management 1529 17596397.6 17223699 390751 2%
Company

IDBI Asset
Management 92 689266.37 756428.17 -67162 -9%
Company

81
 QAAUM Prev Inc/Dec
Mutual Fund Total
AUM (₹ QAAUM (₹ Percentage
Name Schemes
Lakh.) (₹ Lakh.) Lakh.)

IDFC Asset
Management 453 5228379.46 5486421.83 -249600 -5%
Company

IIFCL Asset
1 35797.56 34293.89 1504 4%
Management Asset

IIFL Asset
Management 18 48543.76 42203.84 6340 15%
Company

IL & FS Infra
Asset Management 12 92296.34 90029.5 2267 3%
Company

Indiabulls Asset
Management 56 528955.04 491675.45 37279 8%
Company

JM Financial Asset
179 1616090.42 1586776.74 29313 2%
Management

Kotak Mahindra
Asset Management 431 5873108.27 5513383.02 362464 7%
Company

L&T Asset 246 2594480.1 2505850.82 89990 4%

Management

82
 QAAUM Prev Inc/Dec
Mutual Fund Total
AUM (₹ QAAUM (₹ Percentage
Name Schemes
Lakh.) (₹ Lakh.) Lakh.)

Company

LIC Nomura
Mutual Fund Asset
176 1315562.4 1238408.04 92942 8%
Management
Company

Mirae Asset
Management 55 313272.14 280239.04 33101 12%
Company

Motilal Oswal
Asset Management 31 468921.13 455222.64 14103 3%
Company

Nippon India
1015 15936949.34 15787817.36 152561 1%
Mutual Fund

Peerless Asset
Management 57 98524.1 102441.7 -3917 -4%
Company

PPFAS Asset
Management 1 61357.1 62931.88 -1575 -3%
Company

Pramerica 8 27698 17194 10504 61%

Investment

83
 QAAUM Prev Inc/Dec
Mutual Fund Total
AUM (₹ QAAUM (₹ Percentage
Name Schemes
Lakh.) (₹ Lakh.) Lakh.)

Management

Principal Asset
Management 123 528106.02 587875.66 -59770 -10%
Company

Quantum Asset
Management 15 66093.04 65531.63 561 1%
Company

Religare Global
Asset Management 267 1959617.91 1988459.31 -28622 -1%
Company

Sahara Asset
Management 68 9929.16 11002.32 -758 -7%
Company

SBI Asset
Management 652 10732737.36 10058453.69 672760 7%
Company

Shriram Asset
Management 4 3716.98 3711.53 5 0%
Company

Sundaram Asset 479 2366370.94 2187696.57 185302 8%

Management

84
 QAAUM Prev Inc/Dec
Mutual Fund Total
AUM (₹ QAAUM (₹ Percentage
Name Schemes
Lakh.) (₹ Lakh.) Lakh.)

Company

Tata Asset
Management 324 3186223.17 3155590.09 26752 1%
Company

Taurus Asset
Management 65 394858.04 350334.19 44524 13%
Company

Union KBC Asset

Management 60 290228.21 273213.25 17015 6%
Company

UTI Asset
Management 1220 10630921.82 10612903.52 16124 0%
Company

Gross 11856 135912187.2 132170477.1

Mutual Fund Acquisitions[edit]

Seller Acquired By Year

Pioneer ITI MF Franklin Templeton 2002

Zurich India AMC HDFC MF 2003

85
Seller Acquired By Year

Alliance Capital MF Birla Sunlife 2005

Standard Chartered IDFC 2008

AIG Global Investment Group MF PineBridge MF 2011

Benchmark Mutual Fund Goldman Sachs 2011

Fidelity L&T Finance 2012

Morgan Stanley's MF HDFC MF 2013

PineBridge MF Kotak MF 2014

ING Mutual Fund Birla Sunlife 2014

Daiwa AMC SBI MF 2013

Goldman Sachs Reliance MF 2015

Deutsche Pramerica 2015

JP Morgan Edelweiss 2016

Reliance MF Nippon India[9] 2019

86
Seller Acquired By Year

Principal Sundaram 2021

L&T Asset Management Company HSBC Global Asset Management Company 2022

IDFC Asset Management Company Bandhan Financial Holdings Limited 2023

87
 COMPANY PROFILE

The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set
up a bank in the private sector, as part of the RBI's liberalisation of the Indian
Banking Industry in 2294. The bank was incorporated in August 2294 in the name of
'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in 31-3-202395.

HDFC is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 2277, the
Corporation has maintained a consistent and healthy growth in its operations to
remain the market leader in mortgages. Its outstanding loan portfolio covers well over
a million dwelling units. HDFC has developed significant expertise in retail mortgage
loans to different market segments and also has a large corporate client base for its
housing related credit facilities. With its experience in the financial markets, a strong
market reputation, large shareholder base and unique consumer franchise, HDFC was
ideally positioned to promote a bank in the Indian environment.

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build

sound customer franchises across distinct businesses so as to be the preferred provider
of banking services for target retail and wholesale customer segments, and to achieve
healthy growth in profitability, consistent with the bank's risk appetite. The bank is
committed to maintain the highest level of ethical standards, professional integrity,
corporate governance and regulatory compliance. HDFC Bank's business philosophy
is based on four core values - Operational Excellence, Customer Focus, Product
Leadership and People.

88
Capital Structure

As on 31st December, 2006 the authorized share capital of the Bank is Rs. 550 crore.
The paid-up capital as on said date is Rs. 455,23,65,640/- (45,52,36,564 equity shares
of Rs. 10/- each). The HDFC Group holds 23.87 % of the Bank's equity and about
22.94 % of the equity is held by the ADS Depository (in respect of the bank's
American Depository Shares (ADS) Issue). 27.46 % of the equity is held by Foreign
Institutional Investors (FIIs) and the Bank has about 4,58,683 shareholders.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock
Exchange of India Limited. The Bank's American Depository Shares (ADS) are listed
on the New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's
Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under
ISIN No US40415F2002.

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable

network of 1,725 branches spread in 771 cities across India. All branches are linked
on an online real-time basis. Customers in over 500 locations are also serviced
through Telephone Banking. The Bank's expansion plans take into account the need to
have a presence in all major industrial and commercial centres where its corporate
customers are located as well as the need to build a strong retail customer base for
both deposits and loan products. Being a clearing/settlement bank to various leading
stock exchanges, the Bank has branches in the centres where the NSE/BSE have a
strong and active member base.

The Bank also has 4,000 networked ATMs across these cities. Moreover, HDFC
Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders.

Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr.
Capoor was a Deputy Governor of the Reserve Bank of India. The Managing
Director, Mr. Aditya Puri, has been a professional banker for over 25 years, and
before joining HDFC Bank in 2294 was heading Citibank's operations in Malaysia.

89
The Bank's Board of Directors is composed of eminent individuals with a wealth of
experience in public policy, administration, industry and commercial banking. Senior
executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad head
various businesses and functions and report to the Managing Director. Given the
professional expertise of the management team and the overall focus on recruiting and
retaining the best talent in the industry, the bank believes that its people are a
significant competitive strength.

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank's branches have online
connectivity, which enables the bank to offer speedy funds transfer facilities to its
customers. Multi-branch access is also provided to retail customers through the
branch network and Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class bank.
The Bank's business is supported by scalable and robust systems which ensure that
our clients always get the finest services we offer.

The Bank has prioritised its engagement in technology and the internet as one of its
key goals and has already made significant progress in web-enabling its core
businesses. In each of its businesses, the Bank has succeeded in leveraging its market
position, expertise and technology to create a competitive advantage and build market
share.

HDFC Bank offers a wide range of commercial and transactional banking services
and treasury products to wholesale and retail customers. The bank has three key
business segments:

90
Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing companies
in the Indian corporate to small & mid-sized corporates and agri-based
businesses. For these customers, the Bank provides a wide range of commercial
and transactional banking services, including working capital finance, trade
services, transactional services, cash management, etc. The bank is also a
leading provider of structured solutions, which combine cash management
services with vendor and distributor finance for facilitating superior supply
chain management for its corporate customers. Based on its superior product
delivery / service levels and strong customer orientation, the Bank has made
significant inroads into the banking consortia of a number of leading Indian
corporates including multinationals, companies from the domestic business
houses and prime public sector companies. It is recognised as a leading provider
of cash management and transactional banking solutions to corporate customers,
mutual funds, stock exchange members and banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one-stop
window for all his/her banking requirements. The products are backed by world-
class service and delivered to customers through the growing branch network, as
well as through alternative delivery channels like ATMs, Phone Banking,
NetBanking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC
Bank Plus and the Investment Advisory Services programs have been designed
keeping in mind needs of customers who seek distinct financial solutions,
information and advice on various investment avenues. The Bank also has a
wide array of retail loan products including Auto Loans, Loans against

91
 marketable securities, Personal Loans and Loans for Two-wheelers. It is also a
leading provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investments in electronic form.

HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the Mastercard Maestro debit
card as well. The Bank launched its credit card business in late 2001. By March
2006, the bank had a total card base (debit and credit cards) of over 13 million.
The Bank is also one of the leading players in the “merchant acquiring” business
with over 70,000 Point-of-sale (POS) terminals for debit / credit cards
acceptance at merchant establishments. The Bank is well positioned as a leader
in various net based B2C opportunities including a wide range of internet
banking services for Fixed Deposits, Loans, Bill Payments, etc.

Treasury
Within this business, the bank has three main product areas - Foreign Exchange
and Derivatives, Local Currency Money Market & Debt Securities, and
Equities. With the liberalisation of the financial markets in India, corporates
need more sophisticated risk management information, advice and product
structures. These and fine pricing on various treasury products are provided
through the bank's Treasury team. To comply with statutory reserve
requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and
market risk on this investment portfolio.

Credit Rating

The Bank has its deposit programs rated by two rating agencies - Credit Analysis &
Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank's Fixed
Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which
represents instruments considered to be "of the best quality, carrying negligible
investment risk". CARE has also rated the bank's Certificate of Deposit (CD)
programme "PR 1+" which represents "superior capacity for repayment of short term
promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.)
has assigned the "AAA ( ind )" rating to the Bank's deposit programme, with the

92
outlook on the rating as "stable". This rating indicates "highest credit quality" where
"protection factors are very high"

The Bank also has its long term unsecured, subordinated (Tier II) Bonds rated by
CARE and Fitch Ratings India Private Limited and its Tier I perpetual Bonds and
Upper Tier II Bonds rated by CARE and CRISIL Ltd. CARE has assigned the rating
of "CARE AAA" for the subordinated Tier II Bonds while Fitch Ratings India Pvt.
Ltd. has assigned the rating "AAA (ind)" with the outlook on the rating as "stable".
CARE has also assigned "CARE AAA [Triple A]" for the Banks Perpetual bond and
Upper Tier II bond issues. CRISIL has assigned the rating "AAA / Stable" for the
Bank's Perpetual Debt programme and Upper Tier II Bond issue. In each of the cases
referred to above, the ratings awarded were the highest assigned by the rating agency
for those instruments.

Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a Corporate
Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating
Information Services of India Limited (CRISIL). The rating provides an independent
assessment of an entity's current performance and an expectation on its "balanced
value creation and corporate governance practices" in future. The bank has been
assigned a 'CRISIL GVC Level 1' rating which indicates that the bank's capability
with respect to wealth creation for all its stakeholders while adopting sound corporate
governance practices is the highest.

On May 23, 2022, the amalgamation of Centurion Bank of Punjab with HDFC Bank
was formally approved by Reserve Bank of India to complete the statutory and
regulatory approval process. As per the scheme of amalgamation, shareholders of
CBoP received 1 share of HDFC Bank for every 29 shares of CBoP.

The merged entity will have a strong deposit base of around Rs. 1,22,000 crore and
net advances of around Rs. 89,000 crore. The balance sheet size of the combined
entity would be over Rs. 1,63,000 crore. The amalgamation added significant value to
HDFC Bank in terms of increased branch network, geographic reach, and customer
base, and a bigger pool of skilled manpower.

93
In a milestone transaction in the Indian banking industry, Times Bank Limited
(another new private sector bank promoted by Bennett, Coleman & Co. / Times
Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was the
first merger of two private banks in the New Generation Private Sector Banks. As per
the scheme of amalgamation approved by the shareholders of both banks and the
Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank
for every 5.75 shares of Times Bank.

HDFC Bank Ltd. (BSE: 500180, NYSE: HDB) is a commercial bank of India,
incorporated in August 2294, after the Reserve Bank of India allowed establishing
private sector banks. The Bank was promoted by the Housing Development Finance
Corporation, a premier housing finance company (set up in 2277) of India. HDFC
Bank has 1,412 branches and over 3,295 ATMs, in 528 cities in India, and all
branches of the bank are linked on an online real-time basis. As of September 30,
2022 the bank had total assets of INR 1006.82 billion. For the fiscal year 2022-23, the
bank has reported net profit of Rs.2,244.9 crore, up 41% from the previous fiscal.
Total annual earnings of the bank increased by 58% reaching at Rs.19,622.8 crore in
2022-23

Business Focus
HDFC Bank deals with three key business segments - WholesaleBanking Services,
Retail Banking Services, Treasury. It has entered the bankingconsortia of over 50
corporates for providing working capital finance, tradeservices, corporate finance and
merchant banking. It is also providingsophisticated product structures in areasof
foreign exchange and derivatives, money markets and debt trading and
equityresearch.

Wholesale Banking Services

The Bank's target m inroads into the banking consortia of a number of leading Indian
corporates including multinationals, companies from the domestic business houses
and prime public sector companies. It is recognised as a leading provider of cash
management and transactional banking solutions to corporate customers, mutual
funds, stock exchange members and banks.

94
Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range
of financial products and banking services, giving the customer a one-stop window
for all his/her banking requirements. The products are backed by world-class service
and delivered to customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile
Banking.

HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the Mastercard Maestro debit card
as well. The Bank launched its credit card business in late 2001. By March 2006, the
bank had a total card base (debit and credit cards) of over 13 million. The Bank is also
one of the leading players in the “merchant acquiring” business with over 70,000
Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant
establishments. The Bank is well positioned as a leader in various net based B2C
opportunities including a wide range of internet banking services for Fixed Deposits,
Loans, Bill Payments, etc.

Treasury

Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. These
services are provided through the bank's Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and market
risk on this investment portfolio.

Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank has an network of 1,725
branches spread in 771 cities across India. All branches are linked on an online real-
time basis. Customers in over 500 locations are also serviced through Telephone
Banking. The Bank has a presence in all major industrial and commercial centres
across the country. Being a clearing/settlement bank to various leading stock

95
exchanges, the Bank has branches in the centres where the NSE/BSE have a strong
and active member base.

The Bank also has 3,898 networked ATMs across these cities. Moreover, HDFC
Bank's ATM network can be accessed by all domestic and international
Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express
Credit/Charge cardholders.

Housing Development Finance Corporation Limited or HDFC (BSE: 500010),

founded 2277 by Ravi Maurya and Hasmukhbhai Parekh, is an Indian NBFC,
focusing on home mortgages. HDFC's distribution network spans 243 outlets that
include 49 offices of HDFC's distribution company, HDFC Sales Private Limited. In
addition, HDFC covers over 90 locations through its outreach programmes. HDFC's
marketing efforts continue to be concentrated on developing a stronger distribution
network. Home loans are also Sharcket through HDFC Sales, HDFC Bank Limited
and other third party Direct Selling Agents (DSA).

To cater to non-resident Indians, HDFC has an office in London and Dubai and
service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi, Al Khobar, Jeddah
and Riyadh in Saudi Arabia.

96
Awards and recognition
2016[edit]

 Best Banking Performer, India in 2016 by Global Brands

Magazine Award.[37]
 Best Performing Branch in Microfinance among private sector
banks by NABARD, 2016, Award for Best Performance in Mi-
crofinance[38]
 KPMG study of India's Best Banks, Bank of the year & best
digital banking initiative award 2016[39]
 BrandZ Rankings, Most Valued brand in India for third suc-
cessive year[40]
 FinanceAsia poll on Asia's Best Companies 2015, Best man-
aged public company – India[41]
 J. P. Morgan Quality Recognition Award, Best in class straight
through processing rates[42]

2018[edit]

 Company of the year: The Economic Times Corporate Excel-

lence Awards[citation needed]
 Best Performing Private Bank in Total Aadhaar Generation &
Update: [[Aadhaar|Aadhaar Excellence Awards[citation needed]]]
 NCPI - National Payments Excellence Awards[citation needed]

2022[edit]

 Best Bank: New Private Sector – FE Best Bank awards[43]

 Winner in Innovation and Inclusiveness in Priority Sector
Lending – 11th Inclusive Finance India Awards (IFI) 2022[44]
 Ranked 1st in 2022 BrandZ Top 75 Most Valuable Indian
Brands HDFC Bank was featured for the 6th consecutive year.[45]
 Among The Most Honored Company List, Institutional In-
vestor All-Asia (ex-Japan) Executive Team 2022 survey[46]
 India’s Best Bank, Euromoney Awards for Excellence 2022[47]
 Bank of the Year and Best Large Bank, Business Today –
Money Today Financial Awards 2022[48]
 Best Bank in India 2022, by Global magazine FinanceAsia.[49]
 Ranked 60th in 2022 BrandZ Top 100 Most Valuable Global
Brands[50] HDFC Bank was featured BrandZ Top 100 Most Valu-

97
 able Global Brands 2022 for the 5th consecutive year. The Bank's
brand value has gone up from $20.87 billion in 2018 to
$22.70 billion in 2022.[citation needed]
 Best Large Bank & Fastest Growing Large Bank in 2022, by
Business World Magna Awards[51]
 India's leading private sector bank: Dun & Bradstreet BFSI
Awards[citation needed]

2020[edit]

 Best Bank in India: Euromoney Awards[52]

 Best Bank in India: FinanceAsia Country Awards[citation needed]

2021[edit]

 Best bank in india: FinanceAsia Country Awards[citation needed]

 Best bank for SMEs: Asiamoney best bank awards[citation needed]
 Best bank in india:
[[Euromoney#The_Euromoney_Awards_for_Excellence|The Eu-
romoney Awards for Excellence[citation needed]]]
 Ranks No. 1 in Mass Affluent category:Euromoney Private
Banking and Wealth Management Survey

98
 CHAPTER IV

DATA ANALYSIS
&
INTERPRETATION

DATA ANALYSIS & INTERPRETATION

99
For the purpose of data analysis and interpretation the following mutual funds have
been chosen;

a) SBI Magnum Equity Fund Growth

b) Birla Sun life 95 Growth
c) Kotak 30 Growth
d) TATA Equity Management Fund Growth

Each product has been analyzed using the following tools and the results tabulated,
presented graphically and the evaluation of the same has been given under the caption
'Interpretation' below the graph.

The fund NAVs are compared with the bench mark of nifty for the analysis.

100
 Four Asset Management Company (AMC’S) have been taken
for the month of January 2022
TATA
Equity
Date Market Level Kotak
SBI Magnum Eq- Birla Sun life Manage-
30
uity fund Growth 95 Growth ment
(dd/mm/yyyy) ( NIFTY) Growth
Fund
Growth

17,538.95 21.08 159.95 57.62 7.94

1-Mar-23
17,388.00 21.22 192.21 57.94 7.98
2-Mar-23
17,661.45 21.69 193.7 59.18 8.1
3-Mar-23
17,779.00 21.86 193.84 59.22 8.12
6-Mar-23
17,798.70 20.7 154.38 56.44 7.7
8-Mar-23
17,638.20 20.18 154.48 55.55 7.57
9-Mar-23
17,449.50 19.75 152.69 53.99 7.42
10-Mar-23
17,220.00 19.64 152.59 53.55 7.39
13-Mar-23
17,140.00 20 155.28 54.64 7.53
14-Mar-23
17,027.55 19.56 152.9 53.31 7.33
15-Mar-23
17,070.35 19.87 154.27 54.56 7.46
16-Mar-23
17,189.00 19.98 156.12 54.73 7.49
17-Mar-23
17,037.05 19.63 155.72 53.92 7.38
20-Mar-23
17,169.10 19.18 153.08 52.47 7.25
21-Mar-23
17,183.95 19.06 151.88 52.5 7.24
22-Mar-23
17,082.00 18.71 150.67 51.76 7.19
23-Mar-23
16,938.00 19.24 151.51 53.03 7.24
24-Mar-23
17,024.55 19.62 152.33 54.04 7.35
27-Mar-23
16,977.70 19.47 151.76 53.86 7.34
28-Mar-23
17,081.20 19.71 152.91 54.54 7.42
29-Mar-23
17,269.71
Average 20.01 155.06 54.84 7.52

101
Calculations of Risk of SBI Magnum Equity fund Growth

for the period of 1-3-2023 to 31-3-2023

SBI Magnum
Date Market Level Market Re-
Equity fund Return
(dd/mm/yyyy) ( NIFTY) turn
Growth

17,538.95 21.08
1-Mar-23
17,388.00 0.44 21.22 0.66
2-Mar-23
17,661.45 2.45 21.69 2.21
3-Mar-23
17,779.00 -0.28 21.86 0.78
6-Mar-23
17,798.70 -6.18 20.7 -5.31
8-Mar-23
17,638.20 -1.62 20.18 -2.51
9-Mar-23
17,449.50 -3.48 19.75 -2.19
10-Mar-23
17,220.00 -1.02 19.64 -0.56
13-Mar-23
17,140.00 3.29 20 1.83
14-Mar-23
17,027.55 -3.48 19.56 -2.20
15-Mar-23
17,070.35 3.35 19.87 1.58
16-Mar-23
17,189.00 0.63 19.98 0.55
17-Mar-23
17,037.05 -1.74 19.63 -1.75
20-Mar-23
17,169.10 -3.23 19.18 -2.29
21-Mar-23
17,183.95 0.28 19.06 -0.36
22-Mar-23

102
 17,082.00 -1.30 18.71 -2.09
23-Mar-23
16,938.00 3.46 19.24 2.83
24-Mar-23
17,024.55 2.82 19.62 1.98
27-Mar-23
16,977.70 -0.90 19.47 -0.76
28-Mar-23
17,081.20 1.80 19.71 1.23
29-Mar-23

Average Return -0.36 -0.42

Standard deviation (Risk) 2.75 2.15

Beta 0.75

Graphical Presentation of SBI Magnum Equity Fund-Growth For

the month of 31-3-2023

Interpretation:

103
SBI Magnum Equity Fund-Growth has been analyzed and it is found that there is a
negative growth. How ever on the basis of the avg returns of SBI there is a negative
growth 0.42 as against the index avg of negative 0.36 the beta being less than 1 the
stock is not highly volatile.

104
Calculations of Risk of Birla Sun life 95 Growth

for the period of 1-3-2023 to 31-3-2023

Date Market Level Market Re- Birla Sun life

Return
(dd/mm/yyyy) ( NIFTY) turn 95 Growth

17,538.95 159.95
1-Mar-23
17,388.00 0.44 192.21 1.41
2-Mar-23
17,661.45 2.45 193.7 0.92
3-Mar-23
17,779.00 -0.28 193.84 0.09
6-Mar-23
17,798.70 -6.18 154.38 -5.77
8-Mar-23
17,638.20 -1.62 154.48 0.06
9-Mar-23
17,449.50 -3.48 152.69 -1.19
10-Mar-23
17,220.00 -1.02 152.59 -0.07
13-Mar-23
17,140.00 3.29 155.28 1.76
14-Mar-23
17,027.55 -3.48 152.9 -1.53
15-Mar-23
17,070.35 3.35 154.27 0.90
16-Mar-23
17,189.00 0.63 156.12 1.20
17-Mar-23
17,037.05 -1.74 155.72 -0.26
20-Mar-23
17,169.10 -3.23 153.08 -1.70
21-Mar-23
17,183.95 0.28 151.88 -0.78
22-Mar-23
17,082.00 -1.30 150.67 -0.80
23-Mar-23
16,938.00 3.46 151.51 0.56
24-Mar-23
17,024.55 2.82 152.33 0.54
27-Mar-23
16,977.70 -0.90 151.76 -0.37
28-Mar-23
17,081.20 1.80 152.91 0.76
29-Mar-23
105

Average Return -0.36 -0.28

Graphical Presentation of Birla Sun life 95 Growth

For the month of 31-3-2023

Interpretation:

Birla Sun life 95 Growth have been analysed and it is found that there is a negative
growth. How ever on the basis of the avg returns of Birla Sun life there is a negative
growth 0.28as against the index avg of negative 0.36 the beta being less than 1 the
stock is not highly volatile.

Calculations of Risk of Kotak 30 Growth

for the period of 1-3-2023 to 31-3-2023

Market
Date Market Re- Kotak 30
Level Return(y)
(dd/mm/yyyy) turn (x) Growth
( NIFTY)

17,538.95 57.62
1-Mar-23
17,388.00 0.44 57.94 0.56
2-Mar-23
17,661.45 2.45 59.18 2.19
3-Mar-23
17,779.00 -0.28 59.22 0.07
6-Mar-23

106
 17,798.70 -6.18 56.44 -4.69
8-Mar-23
17,638.20 -1.62 55.55 -1.58
9-Mar-23
17,449.50 -3.48 53.99 -2.81
10-Mar-23
17,220.00 -1.02 53.55 -0.81
13-Mar-23
17,140.00 3.29 54.64 2.04
14-Mar-23
17,027.55 -3.48 53.31 -2.43
15-Mar-23
17,070.35 3.35 54.56 2.34
16-Mar-23
17,189.00 0.63 54.73 0.31
17-Mar-23
17,037.05 -1.74 53.92 -1.48
20-Mar-23
17,169.10 -3.23 52.47 -2.69
21-Mar-23
17,183.95 0.28 52.5 0.06
22-Mar-23
17,082.00 -1.30 51.76 -1.41
23-Mar-23
16,938.00 3.46 53.03 2.45
24-Mar-23
17,024.55 2.82 54.04 1.90
27-Mar-23
16,977.70 -0.90 53.86 -0.33
28-Mar-23
17,081.20 1.80 54.54 1.26
29-Mar-23

x y

Average Return -0.36 -0.35

Standard deviation 2.75 2.07

Beta 0.75

107
Graphical Presentation of KOTAK 30 Growth Fund

For the month of 31-3-2023

Interpretation:

KOTAK 30 Growth Fund have been analysed and it is found that there is a negative
growth. How ever on the basis of the avg returns of KOTAK there is a negative
growth 0.35 as against the index avg of negative 0.36 the beta being less than 1 the
stock is not highly volatile.

Calculations of Risk of TATA Equity Management Fund Growth

for the period of 1-3-2023 to 31-3-2023

TATA Equity Man-

Date Market Level Market Re-
agement Fund Return(y)
(dd/mm/yyyy) ( NIFTY) turn (x)
Growth

17,538.95 7.94
1-Mar-23
2-Mar-23 17,388.00 0.44 7.98 0.50

108
 17,661.45 2.45 8.1 1.50
3-Mar-23
17,779.00 -0.28 8.12 0.25
6-Mar-23
17,798.70 -6.18 7.7 -5.19
8-Mar-23
17,638.20 -1.62 7.57 -1.69
9-Mar-23
17,449.50 -3.48 7.42 -1.98
10-Mar-23
17,220.00 -1.02 7.39 -0.40
13-Mar-23
17,140.00 3.29 7.53 1.89
14-Mar-23
17,027.55 -3.48 7.33 -2.66
15-Mar-23
17,070.35 3.35 7.46 1.77
16-Mar-23
17,189.00 0.63 7.49 0.40
17-Mar-23
17,037.05 -1.74 7.38 -1.47
20-Mar-23
17,169.10 -3.23 7.25 -1.76
21-Mar-23
17,183.95 0.28 7.24 -0.19
22-Mar-23
17,082.00 -1.30 7.19 -1.38
23-Mar-23
16,938.00 3.46 7.24 1.40
24-Mar-23
17,024.55 2.82 7.35 1.52
27-Mar-23
16,977.70 -0.90 7.34 -0.19
28-Mar-23
17,081.20 1.80 7.42 1.09
29-Mar-23

x y

Average Return -0.36 -0.42

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 Standard deviation 2.75 1.86

Beta 0.65

Graphical presentation of TATA Equity Management Fund Growth

For the month of 31-3-2023

Interpretation:

TATA Equity Management Fund Growth has been analyzed and it is found that there
is a negative growth. How ever on the basis of the avg returns of TATA Equity there
is a negative growth 0.42 as against the index avg of negative 0.36 the beta being less
than 1 the stock is not highly volatile.

Comparative Study of the performance of the Selected AMC’s Sharp in-

dex and Treynor index are calculated For the month of 31-3-2023
Sharp's Treynor
Return Risk(std Beta
Name of the Fund Rf
(Rm) dev) (β) (Rm- (Rm-
Rf)/σ Rf)/β

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SBI Magnum Equity Fund
-0.42 2.15 0.75 0.06 -0.22 -0.64
Growth

-0.28 1.69 0.51 0.06 -0.20 -0.67

Birla Sun life 95 Growth

Kotak 30 Growth -0.35 2.07 0.75 0.06 -0.20 -0.55

TATA Equity Management

-0.42 1.86 0.65 0.06 -0.26 -0.73
Fund Growth

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 The graphical representation of Sharp Index:

Interpretation:

 From the above table and graph we can know that Birla sunlife and kotak are
giving good returns and they are in first position,

 And the second position is SBI

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The graphical representation of TREYNER Index:

Interpretation:

 From the above table and graph we can know Kotak is performing well and it is
in first position

 And the second position is SBI

 The general trend in the reduction of the market price for various mutual funds
studied is not encouraging the stock market index has also been falling
continuously because of general economic slow down how ever the funds are
ranked considering sharp and trenyors in the order of performances

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 CHAPTER V
FINDINGS

SUGGESTIONS

CONCLUSION

FINDINGS

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 SHARPE’S: As per Sharpe performance measure, a high Sharpe ratio is
preferable as it indicates a superior risk adjusted performance of a fund. From the
above table Birla sunlife and kotak show a better risk-adjusted performance out of
top4 AMC’S.

TREYNOR’s: As per TREYNOR’S ratio the Treynor’s reward to volatility -

having high positive index is favorable. Therefore, as per this ratio also Kotak
PORTFOLIO MANAGEMENT is preferable.

HDFC Contra is a diversified equity growth scheme, by the performance of

this scheme we can say that it is not even up to comfort level of returns. In this fund
debt investments were given priority thus foregoing equity related investment. This
has happened the results badly.

This is open-ended equity growth scheme in which the investors in this

scheme only invest in IT sector, investment strategy between 90-100%.

Through my survey I observed HDFC Equity FOF is a multi manager FOF

scheme. In this scheme the investment is not invested in securities or stock. It is di-
rectly invested in other schemes of mutual funds. The performance of this scheme is
good.

SUGGESTIONS:
Investing Checklist

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 Financial goals & Time frame
(Are you investing for retirement? A child’s education? Or for current income? )
Risk Taking Capacity Identify funds that fall into your Buy List Obtain and read
the offer Documents match your objectives
 In terms of equity share and bond weightings, downside risk
 protection, tax benefits offered, dividend payout policy, sector focus
 Performance of various funds with similar objectives for at least 3-5 years
 Think hard about investing in sector funds For relatively aggressive investors
 Close touch with developments in sector, review portfolio regularly – Look for `load'
costs
 Management fees, annual expenses of the fund and sales loads
 Look for size and credentials
 Asset size less than Rs. 25 Crores
 Diversify, but not too much
 Invest regularly, choose the S-I-P
 MF- an integral part of your savings and wealth building plans.
Portfolio Decision
The right asset allocation
i. Age = % in debt instruments
ii. Reality= different financial position, different allocation
iii. Younger= Riskier
2. Selecting the right fund/s
i. Based on scheme’s investment philosophy
ii. Long-term, appetite for risk, beat inflation– equity funds best
3. TRAPS TO AVOID
4. IPO Blur
5. Begin with existing schemes (proven track record) and then new
6. schemes
i. Avoid Market Timing
7. MF Comparison
8. Absolute returns
9. –% Difference of NAV
i. Diversified Equity with Sector Funds– NO

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10. Benchmark returns
i. SEBI directs
ii. Fund's returns compared to its benchmark
11. Time period –Equal to time for which you plan to invest
i. Equity- compare for 5 years, Debt- for 6 months
ii.
Recommendations and Suggestions to AMCS:
1) Brand building:
Brand building is an exercise, which every business enterprise will have.
Brand is the soul of an institution; it survives on it, lives with it and cherishes it.
Example: BIRLA SUNLIFE MUTUAL FUND has a brand, every bank, insurance
companies; mutual fund companies have got their own brands.

2) Strength full Strategies:

Every AMC should try to turn into a more modern, a more vibrant, a more
transparent and regulatory compliance institution. It is with this in mind, every
institution should try to come up with verity of different type of products to fill
different investment objectives

3) Marketing tools for total quality achievement:

a. Large Network.
b. Effective Man power
c. Distribution across the Market
d. Customer relations(Building better relationships)
e. Value added service
f. Better transparency level
g. Building brand name as a disciplined player.

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 4) Innovation:

MF industry can be classified morely into three categories like equity, debt
and balanced. And there is also complexive in nature. Fund managers are not able to
reach niche market. The products are should be innovative that can meet niche
market. Here MF should follow the FMCG industry innovative strategy.

The Ground rules of Mutual Fund Investing

Assess yourself

1) Try to understand where the money is going

2) Don't rush in picking funds, think first
3) Invest. Don’t speculate
4) Don’t put all the eggs in one basket
5) Be regular
6) Do your homework
7) Find the right funds
8) Keep track of your investments
9) Know when to sell your mutual funds

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CONCLUSIONS

 From the study analysis conducted it is clear that in EQUITY FUNDS-KOTAK

MUTUAL FUND is performing very well.
 Investing in the KOTAK MUTUAL FUND (GROWTH) will leads to profits.
 By seeing the overall performance KOTAK MUTUAL FUND is performing
very well.
 The prospective investors are needed to be made aware of the investment in
mutual funds.
 The Industry should keep consistency and transparency in its management and
investors objectives.
 There is 100% growth of mutual fund as foreign AMCS are in queue to enter the
Indian markets.
 Mutual funds can also portrait in to rural areas.

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BIBLIOGRAPHY

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 BIBILIOGRAPHY

REFERENCE BOOKS
- Financial management : Philip Kotlar
- Research and Methodology : C.K. Kothari
- Direct Taxes : Dr. Vinod K. Singhania
&
: Dr. Kapil Singhania
NEWS PAPERS:
Times of India
Business Standard

JOURNALS
 JOURNAL ON INVESTMENT STRATEGY
 DALAL INVESTMENT JOURNAL
 AFFILIA
 AMERICAN JOURNAL

BOOKS
1. The Mindful Investor, by Maria Gonzalez and Graham Bayron.
2. Understanding Indian Investors, by Jawahar Lal.
3. Security Analysis and Portfolio Management by Punithavathi Pandian.
4. Investment Analysis and Portfolio Management, by Prasanna Chandra.

II. WEB SITES

www.amfiindia.com
www.religare.com
www.bseindia.com
www.nseinda.com
www.bluechipinda.co.in

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