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Calculation of Return and Risk of Selected Mutual

This document summarizes the risk and return calculations for two mutual funds, Reliance Vision Fund and Franklin India Prima Fund, from April 2009 to March 2012. For Reliance Vision Fund, the monthly return ranged from -11.35% to 31.58% with an average return of 1.734% and standard deviation of 7.72%. Its beta was calculated to be 1.034. For Franklin India Prima Fund, the monthly return ranged from -10.61% to 36.59% with an average return of 1.77% and standard deviation of 7.72%. Its beta was calculated to be 1.034. Both funds' risk and returns are analyzed over a 36 month period from April

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Manjunatha Reddy
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43 views10 pages

Calculation of Return and Risk of Selected Mutual

This document summarizes the risk and return calculations for two mutual funds, Reliance Vision Fund and Franklin India Prima Fund, from April 2009 to March 2012. For Reliance Vision Fund, the monthly return ranged from -11.35% to 31.58% with an average return of 1.734% and standard deviation of 7.72%. Its beta was calculated to be 1.034. For Franklin India Prima Fund, the monthly return ranged from -10.61% to 36.59% with an average return of 1.77% and standard deviation of 7.72%. Its beta was calculated to be 1.034. Both funds' risk and returns are analyzed over a 36 month period from April

Uploaded by

Manjunatha Reddy
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 10

CALCULATION OF RETURN AND RISK OF SELECTED MUTUAL

FUNDS
1) Reliance Vision Fund:
Reliance Vision Fund is large cap open ended growth fund. Its objective is to achieve
long term growth of capital through a research based investment approach. Monthly risk and
return from Apr 2009 to Mar 2012 is calculated below.

Calculation of Risk and Return


Month
09-Apr
09-May
09-Jun
09-Jul
09-Aug
09-Sep
09-Oct
09-Nov
09-Dec
10-Jan
10-Feb
10-Mar
10-Apr
10-May
10-Jun
10-Jul
10-Aug
10-Sep
10-Oct
10-Nov
10-Dec
11-Jan
11-Feb
11-Mar
11-Apr
11-May
11-Jun
11-Jul

NET ASSET VALUE


150.8041
198.4248
196.2114
213.27
215.3381
237.7448
223.8429
239.2409
251.0499
239.0573
239.5465
251.8073
256.1138
250.6752
265.4515
266.6405
272.6781
298.7151
298.3058
283.706
287.8343
264.4526
249.1703
270.1551
272.9631
267.4692
270.0762
267.0624

RETURN % R
31.58
-1.12
8.69
0.97
10.41
-5.85
6.88
4.94
-4.78
0.20
5.12
1.71
-2.12
5.89
0.45
2.26
9.55
-0.14
-4.89
1.46
-8.12
-5.78
8.42
1.04
-2.01
0.97
-1.12
-9.44

R-R1
29.84
-2.85
6.96
-0.76
8.67
-7.58
5.14
3.20
-6.51
-1.53
3.38
-0.02
-3.86
4.16
-1.29
0.53
7.81
-1.87
-6.63
-0.28
-9.86
-7.51
6.69
-0.69
-3.75
-0.76
-2.85
-11.17

(R-R1)2
890.66
8.12
48.44
0.58
75.19
57.48
26.47
10.25
42.39
2.34
11.45
0.00
14.88
17.31
1.65
0.28
61.07
3.50
43.93
0.08
97.17
56.44
44.73
0.48
14.04
0.58
8.12
124.83

11-Aug
11-Sep
11-Oct
11-Nov
11-Dec
12-Jan
12-Feb
12-Mar

241.8547
237.6484
247.5469
219.4472
207.4707
242.9548
252.779
254.0285

-1.74
4.17
-11.35
-5.46
17.10
4.04
0.49

62.44

-3.47
2.43
-13.09
-7.19
15.37
2.31
-1.24

12.06
5.91
171.22
51.72
236.21
5.33
1.54

2146.48

Calculation of beta

Month
09-Apr
09-May
09-Jun
09-Jul
09-Aug
09-Sep
09-Oct
09-Nov
09-Dec
10-Jan
10-Feb
10-Mar
10-Apr
10-May
10-Jun
10-Jul
10-Aug
10-Sep
10-Oct
10-Nov
10-Dec
11-Jan
11-Feb
11-Mar
11-Apr
11-May
11-Jun
11-Jul
11-Aug
11-Sep
11-Oct
11-Nov
11-Dec
12-Jan
12-Feb

RETURN
OF
COMPANY

31.58
-1.12
8.69
0.97
10.41
-5.85
6.88
4.94
-4.78
0.2
5.12
1.71
-2.12
5.89
0.45
2.26
9.55
-0.14
-4.89
1.46
-8.12
-5.78
8.42
1.04
-2.01
0.97
-1.12
-9.44
-1.74
4.17
-11.35
-5.46
17.1
4.04
0.49

RETURN
OF
MARKET

28.26
-0.90
8.12
-0.02
9.32
-7.19
6.48
3.18
-6.34
0.44
6.68
0.18
-3.50
4.46
0.95
0.58
11.67
-0.18
-2.55
5.06
-10.64
-2.75
9.10
-1.59
-3.31
1.85
-3.44
-8.36
-1.34
7.60
-8.93
-4.15
11.25
3.25
-1.96

Ra-Ra1

29.85
-2.85
6.96
-0.76
8.68
-7.58
5.15
3.21
-6.51
-1.53
3.39
-0.02
-3.85
4.16
-1.28
0.53
7.82
-1.87
-6.62
-0.27
-9.85
-7.51
6.69
-0.69
-3.74
-0.76
-2.85
-11.17
-3.47
2.44
-13.08
-7.19
15.37
2.31
-1.24

Rm-Rm1

26.49
-2.67
6.35
-1.79
7.55
-8.96
4.71
1.41
-8.11
-1.33
4.91
-1.59
-5.27
2.69
-0.82
-1.19
9.90
-1.95
-4.32
3.29
-12.41
-4.52
7.33
-3.36
-5.08
0.08
-5.21
-10.13
-3.11
5.83
-10.70
-5.92
9.48
1.48
-3.73

(Ra-Ra1)*(Rm-Rm1)

(Rm-Rm1)2

790.47
7.62
44.15
1.37
65.51
67.91
24.23
4.53
52.81
2.04
16.64
0.04
20.30
11.19
1.06
-0.63
77.41
3.66
28.62
-0.90
122.25
33.98
49.00
2.33
19.01
-0.06
14.88
113.14
10.79
14.21
140.04
42.56
145.67
3.42
4.64

701.46
7.12
40.28
3.22
57.01
80.19
22.18
1.99
65.73
1.78
24.15
2.54
27.74
7.25
0.68
1.43
98.10
3.82
18.67
10.83
153.91
20.45
53.72
11.29
25.77
0.01
27.16
102.52
9.65
34.04
114.55
35.00
89.86
2.20
13.94

12-Mar
62.44

63.88

Bench Mark Return and Risk (Reliance Vision Fund)

Return = (P1 /P0 *100) - 100


Where, P1 = Current month price,
P0 = Previous month price
R1 = R/n,
Where n=number of months.
R1 = 62.44/36
R1 = 1.734
SD = (R- R1)2 /n
= 2146.48/36
SD = 7.72

Calculation of Beta
B = [(Ra Ra1)(Rm-Rm1)]/ (Rm-Rm1)2
Where Ra = Return on Company, Ra1= Average return on company
Rm= Return on market, Rm1= Average return on market
= 1933.90/1870.25
B = 1.034

1933.90

1870.25

Calculation of Alpha

Alpha = (Ra1-Rm1)*B
= ((1.734)-(1.77)*1.034
A= -0.096

2) Franklin India Prima Fund:


Franklin India Prima Fund is mid cap open ended growth fund. Its objective is to achieve
long term growth of capital through a research based investment approach. Monthly risk and
return from Apr 2009 to Mar 2012 is calculated below.

Calculation of Risk and Return


Month
09-Apr
09-May
09-Jun
09-Jul
09-Aug
09-Sep
09-Oct
09-Nov
09-Dec
10-Jan
10-Feb
10-Mar
10-Apr
10-May
10-Jun
10-Jul
10-Aug
10-Sep
10-Oct
10-Nov
10-Dec
11-Jan
11-Feb
11-Mar
11-Apr

NET ASSET VALUE


127.87
174.66
175.49
196.15
208.48
219.00
217.94
233.75
246.24
237.74
234.13
256.05
265.60
250.52
264.23
273.90
282.10
301.09
305.20
297.58
290.20
259.41
245.20
267.52
272.46

RETURN % R
36.59
0.47
11.77
6.29
5.05
-0.48
7.25
5.35
-3.46
-1.52
9.36
3.73
-5.68
5.47
3.66
3.00
6.73
1.36
-2.50
-2.48
-10.61
-5.48
9.11
1.84
0.59

R-R1
34.23
-1.89
9.41
3.93
2.69
-2.84
4.89
2.99
-5.82
-3.88
7.00
1.37
-8.04
3.11
1.30
0.64
4.37
-1.00
-4.86
-4.84
-12.97
-7.84
6.75
-0.52
-1.77

(R-R1)2
1171.64
3.56
88.59
15.42
7.22
8.09
23.95
8.92
33.82
15.04
49.03
1.88
64.64
9.70
1.69
0.41
19.10
0.99
23.58
23.41
168.24
61.46
45.50
0.27
3.12

11-May
11-Jun
11-Jul
11-Aug
11-Sep
11-Oct
11-Nov
11-Dec
12-Jan
12-Feb
12-Mar

274.08
273.63
272.57
255.84
251.40
257.61
242.81
228.86
249.38
266.12
269.69

-0.16
-0.39
-6.14
-1.74
2.47
-5.74
-5.74
8.96
6.71
1.34

85.00

-2.52
-2.75
-8.50
-4.10
0.11
-8.10
-8.10
6.60
4.35
-1.02

6.37
7.54
72.22
16.79
0.01
65.67
65.69
43.61
18.94
1.03

2147.14

Calculation of Beta
RETURN OF

Month COMPANY
09-Apr
36.59
09-May
0.47
09-Jun
11.77
09-Jul
6.29
09-Aug
5.05
09-Sep
-0.48
09-Oct
7.25
09-Nov
5.35
09-Dec
-3.46
10-Jan
-1.52
10-Feb
9.36
10-Mar
3.73
10-Apr
-5.68
10-May
5.47
10-Jun
3.66
10-Jul
3
10-Aug
6.73
10-Sep
1.36
10-Oct
-2.5
10-Nov
-2.48
10-Dec
-10.61
11-Jan
-5.48
11-Feb
9.11
11-Mar
1.84
11-Apr
0.59
11-May
-0.16
11-Jun
-0.39
11-Jul
-6.14
11-Aug
-1.74
11-Sep
2.47
11-Oct
-5.74
11-Nov
-5.74
11-Dec
8.96
12-Jan
6.71
12-Feb
1.34
12-Mar
85

RETURN OF
MARKET

RaRa1

Rm-Rm1

(Ra-Ra1)*(RmRm1)

(RmRm1)2

28.26
-0.9
8.12
-0.02
9.32
-7.19
6.48
3.18
-6.34
0.44
6.68
0.18
-3.5
4.46
0.95
0.58
11.67
-0.18
-2.55
5.06
-10.64
-2.75
9.1
-1.59
-3.31
1.85
-3.44
-8.36
-1.34
7.6
-8.93
-4.15
11.25
3.25
-1.96

34.23
-1.89
9.41
3.93
2.69
-2.84
4.89
2.99
-5.82
-3.88
7
1.37
-8.04
3.11
1.3
0.64
4.37
-1
-4.86
-4.84
-12.97
-7.84
6.75
-0.52
-1.77
-2.52
-2.75
-8.5
-4.1
0.11
-8.1
-8.1
6.6
4.35
-1.02

26.49
-2.67
6.35
-1.79
7.55
-8.96
4.71
1.41
-8.11
-1.33
4.91
-1.59
-5.27
2.69
-0.82
-1.19
9.9
-1.95
-4.32
3.29
-12.41
-4.52
7.33
-3.36
-5.08
0.08
-5.21
-10.13
-3.11
5.83
-10.7
-5.92
9.48
1.48
-3.73

906.75
5.05
59.75
-7.03
20.31
25.45
23.03
4.22
47.20
5.16
34.37
-2.18
42.37
8.37
-1.07
-0.76
43.26
1.95
21.00
-15.92
160.96
35.44
49.48
1.75
8.99
-0.20
14.33
86.11
12.75
0.64
86.67
47.95
62.57
6.44
3.80

701.72
7.13
40.32
3.20
57.00
80.28
22.18
1.99
65.77
1.77
24.11
2.53
27.77
7.24
0.67
1.42
98.01
3.80
18.66
10.82
154.01
20.43
53.73
11.29
25.81
0.01
27.14
102.62
9.67
33.99
114.49
35.05
89.87
2.19
13.91

1798.93

1870.61

63.88

Bench Mark Return and Risk (Franklin India Prima Fund)


Return = (P1 /P0 *100) - 100
Where, P1 = Current month price,
P0 = Previous month price
R1 = R/n,
Where n=number of months.
R1 = 85/36
R1 = 2.36
SD = (R- R1)2 /n
= 2147.14/36
SD = 7.72
Calculation of Beta
B = [(Ra Ra1)(Rm-Rm1)]/ (Rm-Rm1)2
Where Ra = Return on Company, Ra1= Average return on company
Rm= Return on market, Rm1= Average return on market
= 1798.93/1870.61
B = 0.96
Calculation of Alpha
Alpha = (Ra1-Rm1)*B
= ((1.734)-(1.77)*0.96
A = 0.0348

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