Comparison of Equity Mutual Funds Of

State Bank Of India Mutual Fund, HDFC Mutual Fund , Reliance Mutual Fund, DSP Blackrock Mutual Fund, Franklin Templeton Mutual Fund

What is Financial Planning?

A process of determining an individual's financial goals, purposes in life and life's priorities, and after considering his resources, risk taking ability and current lifestyle, to detail a balanced and realistic plan on 'what needs to be done' to meet those goals It varies from person to person and should be updated from time to time

Cost of money lying idle

Money in savings account Interest earned in 1 year (@4 % annum) Tax on Interest Impact of Inflation (@5% per annum) Value at the end of year 1

+ +

100000 4000 104000 1500 5000 97500

Your investment ought to beat the inflation !!!

Your Investment Menu Card

Instrument EPF PPF NSC FDs Banks & Post Office Senoir Citizen Savings Scheme Mutual Funds ULIP NPS Direct Equity Gold Real Estate Tax Benefit Return 8.50% 8% 8% 5.70 to 8.50% 9% Market Linked Market Linked Market Linked Market Linked Market Linked Market Linked Duration Long Term Long Term Long Term Short Term Long Term Long Term & Short Term Long Term Long Term Long Term Short Term Long Term

Basics of Mutual Funds

What is Mutual Fund and Why Mutual Fund



A mutual fund is the trust that pools the savings of a number of investors who share a common financial goal. Anybody with an investible surplus of as little as a few hundred rupees can invest in Mutual Funds. The money thus collected is then invested by the fund manager in different types of securities. These could range from shares to debenture to money market instruments, depending upon the schemes stated objective.

Evolution of Mutual Funds

Growth of Unit Trust of India (1964-87) Entry of Public Sector (1987-93) Emergence of Private Funds (1993-96) Growth and SEBI Regulations (1996-99) Emergence of a large and uniform industry (1999-2004) Consolidation and Growth (From 2004 onwards)

Organization of a Mutual Fund

Mutual Fund Operation Flow Chart

Advantages of Mutual Funds

1.Professional Management 2.Diversification 3.Convenient Administration 4.Return 5.Low

potential

cost

6.Liquidity 7.Transparency 8.Flexibility 9.Choice 10.Well 11.Tax

of schemes

regulated

benefits

Disadvantages of Mutual Funds

Lack Of Portfolio Customization Choice Overload Inherent Market Risk Risk Of Inflation Change in Government Policy regardingCredit Risk Interest Rate Risk

Net Asset Value

NAV =Value of Each Unit of the scheme Term to describe Value of Assets-Liabilities of an Entity NAV/UNIT = Net Asset Value Number of Units Outstanding

Demystifying NAV Net Asset Value

While selecting a fund, the NAV shouldnt be the criteria, A low NAV need not mean that its a good buy ...

utual und cheme Name A B C D E

NAV's on Jan st 2 9 Oct 2 st 2 23.55 7.44 19.86 21.70 12.10

Growth 9 38.97 12.04 30.23 31.57 16.56 65.5% 61.8% 52.2% 45.5% 36.9%

In the above example during the period under consideration the best growths have been recorded by the funds with the lowest (Scheme B Rs 7.44) and the highest (Scheme A- Rs 23.55) NAVs respectively. On the other hand the least growth has been recorded by (Scheme E), a fund with a low NAV.

Clearly the data suggests that there is no correlation between the NAV size and the returns.

Key Investment Considerations

Liquidity
You get your money back when you want it You get your Safety money back

Plus Convenience
How easy is it to invest, disinvest and adjust to your needs?

Post-tax Returns

How much is really left for you post tax?

TYPES OF MUTUAL FUNDS

Type of Mutual Fund Schemes Special Schemes

Structure

Investment Objective

Open Ended Funds

Equity/Growth Funds

Industry Specific Schemes

Close Ended Funds

Income Funds

Index Schemes

Interval Funds

Balanced Funds

Sectoral Schemes

Money Market Funds

Types Of Equity Mutual Funds

Diversified Equity Fund Sector Fund Thematic Fund Equity Link Savings Scheme Equity Dividend Yield Scheme Arbitrage Fund

Mutual Fund- How to invest in Mutual Funds

Selection Process- 3 step process
Step 3 Select the ideal mix of schemes Investing in just 1 scheme may not meet all your investment needs. You may consider investing in a combination of schemes to achieve your specific goals.

Step Choose the right mutual fund. 1. The track record of performance over the last few years in relation to the appropriate Benchmark and similar funds in the same category 2. How well the mutual fund is organized to provide efficient, prompt and personalized service. 3. Degree of transparency as reflected in frequency an d quality of their communications.

Step 1 Identify your investment needs 1. What are my investment objectives and needs? 2. How much risk am I willing to take? 3. What are my cash flow requirements?

Suggested Portfolio based on Risk tolerance

Aggressive Plan
5% 10-15% 10-20% 60-70% 40-50%

Moderate Plan
10% 30-40% 20%

This plan may suit: Investors in their prime earning years and willing to take more risk Investors seeking growth over a long term

Conservative Plan
10% 20-30% 50-60% 10%

This plan may suit: Investors seeking income and moderate growth Investors looking for growth and stability with moderate risk

This plan may suit: Retired and other investors who need to preserve capital and earn regular income

Growth Schemes

Income Schemes Money Market Schemes

Balanced Schemes

HDFC Equity Fund

The Scheme is an open-ended equity scheme that invests predominantly in equity and equity related instruments with an objective of Long Term Capital Appreciation. Asset Allocation Pattern :- 80-100% Equity and 0-20% Debt Instruments Absolute Return(as %) Year 2011 2010 2009 Performance 23-06-2010 250.53 23-06-2011 268.418 1st Quarter 2nd Quarter -5.5 1.6 -5.0 6.3 56.9 3rd Quarter 4th Quarter 18.0 21.1 -0.7 -0.2 Annual Return 28.4 101.7

SBI Magnum Equity Fund

The Scheme is an open-ended equity scheme that invests predominantly in equity and equity related instruments. The objective of the scheme is to provide the investor Long term capital appreciation by investing in high growth companies. Asset Allocation Pattern :- Not Less than 70% Equity, Not More Than 30% Debt, and Not more than 10% of Securitized Debt. Absolute Return(as %) Year 2011 2010 2009 Performance 23-06-2010 41.24 23-06-2011 41.70 1st Quarter 2nd Quarter -4.6 1.9 -2.8 2.3 45.8 3rd Quarter 12.7 14.8 4th Quarter -2.6 -0.2 Annual Return 17.6 84.1

Reliance Equity Mutual Fund

The Scheme is an open-ended equity scheme that invests predominantly in equity and equity related instruments. The objective of the scheme is to generate Capital Appreciation and provide growth opportunities. Asset Allocation Pattern :- 75-100% Equity, 0-25% Debt Instruments. Absolute Return(as %) Year 2011 2010 2009 Performance 23-06-2010 14.80 23-06-2011 12.94 1st Quarter -7.8 -2.9 -7.1 2nd Quarter 0.8 38.4 3rd Quarter 4.8 14.3 4th Quarter -4.0 -0.2 Annual Return -0.4 51.6

DSP BlackRock Mutual Fund

The Scheme is an open-ended equity scheme that invests predominantly in equity and equity related instruments. The objective of the scheme is to provide the investor Long term capital appreciation. Asset Allocation Pattern :- 90-100% Equity, 0-10% Debt. Absolute Return(as %) Year 2011 2010 1st Quarter -12.9 -0.6 2nd Quarter 4.6 43.2 48.74 3rd Quarter 15.1 21.5 23-06-2011 4th Quarter -2.7 2.4 Annual Return 18.4 77.6 46.10

2009 -1.7 Performance 23-06-2010

Templeton India Equity Income Fund

An open-end diversified equity fund that seeks to provide a combination of regular income and long-term capital appreciation by investing primarily in stocks that have a current or potentially attractive dividend yield. Asset Allocation Pattern :-70% - 100% Equity out of which Large companies 20%75% , Other Indian companies 0%-25%, Foreign securities as permitted by SEBI/RBI 0%-50%, Debt securities 0-30%. Absolute Return(as %) Year 2011 2010 2009 Performance 23-06-2010 41.24 23-06-2011 41.70 1st Quarter 2nd Quarter -7.3 1.5 1.1 -2.0 46.0 3rd Quarter 18.4 20.5 4th Quarter 3.2 -0.2 Annual Return 22.7 100.2

Comparison Of the Above Stated Funds

Point Fund Class Bench Mark Scheme Asset Sector Preference Top 5 Holdings Latest NAV Minimum Investment Rating HDFC EMF Equity Diversified S&P CNX 500 8404.84
Banking/Finance, Oil & Gas, Technology SBI, ICICI Bank, TCS, Coal India, Bank of Baroda

SBI MEF Equity Diversified BSE 100 466.1

Banking/Finance, Technology, Automotive HDFC Bank, Infosys, Bharti Airtel, ICICI Bank, ITC

Reliance EF Equity Diversified S&P CNX Nifty 1433.62

Technology, Banking/Finance, Oil & Gas SBI, Reliance, ICICI Bank, HCL Tech, TCS

DSPBREF Equity Diversified S&P CNX Nifty 1317.60

Banking/Finance, Oil & Gas, Technology TCS, HDFC Bank, HDFC, Reliance, Cairn India

TIEIF Equity Diversified BSE 200 1135.07

Banking/Finance, Metals & Mining, Oil & Gas Tata Chemicals, Sundarmfin, ONGC, Hindalco, Union Bank

268.418 5000 *****

41.70 1000 ***

12.94 5000 *

46.103 5000 ***

19.672 5000 *****

Comparison Of the Above Stated Funds

Performance Returns 3-Month 6-Month 1 Year 2 Year 3 Year 5 Year HDFC EMF -0.9% -8.7% 6.9% 25.3% 21.6% 19.9% SBI MEF -1.0% -7.7% 1.2% 15.3% 12.7% 15.7% Reliance EF -3.4% 13.8% -12.2% 0.1% 2.2% 7.3% DSPBREF -1.3% -15.4% -5.4% 15.0% 11.9% 17.8% TIEIF -2.9% -11.1% 8.3% 21.2% 10.8% 16.3%

Comparison of the Above State Funds

Growth Of a Hypothetical Investment of Rs.10000 over a Period of 10 months.

BE IT SMALL, BE IT BIG, INVEST EARLY, INVEST REGULARLY, BUT INVEST SMART

Happy Investing In Mutual Funds

Compiled by
Prashansa Diptarup Shubhankar Abhishek Behal

THANK Y U