INTRODUCTION

The Indian financial market offers numerous ways, apart from equity, to invest,
diversify and ensure a positively healthy portfolio. One such method is commodity
trading. The commodity market in India is over 100 years old but was officially
established through a legal trading mechanism in the year 2003. As every country relies on
raw materials to grow, the commodities markets have a special place in driving a
country’s economy and allowing investors to profit along the way.

INVESTMENT:

The income that a person receives may be used for purchasing goods and
servicesthat he currently requires, or it may be saved for purchasing goods and services that
he
mayrequireinthefuture.Inotherwords,incomecanbewhatisspentforcurrentconsumptionorsave
d for the future consumption. Savings are generated when a person or an
organizationabstains from present consumption for a future use. The person savings a part
of his incometries tofind a temporary repository for his saving until they are required
tofinance hisofthefutureexpenditure.Thisresultsininvestment.

MEANINGOFINVESTMENT:

Investment is an activity that is engaged in by people who have savings, i.e.,

investmentsare made from savings, or in other words, people invest their savings. But all
savers are notinvestors,investmentisanactivitywhichisdifferentfromsaving.

CHARACTERISTICSOFINVESTMENT:

All investments are characterized by certain features. Let us analyze

thesecharacteristics/featuresofinvestments.

RETURN:

Allinvestmentsarecharacterizedbytheexpectationofreturn. Infact,investments
aremadewiththe primaryobjectiveofderivingareturn. Of yield plus capital appreciation. The

1
difference between the sale price and thepurchasepriceis capitalappreciation

RISK:

Risk is inherent in any investment. This risk may relate to loss of capita,delay in repayment
of capital, non-repayment of interest or variability of
return.Whilesomeinvestmentslikegovernmentsecuritiesabankdepositsarealmostriskless,other
saremoreriskily.Theriskofaninvestmentsdependsuponthefollowingfactors.

1. Thelongerthe maturityperiod,thelargeristherisk.

2. Thelowerthecreditworthinessoftheborrower,thehigheristherisk.

3. The risk varies with the nature of investment. Investments in ownershipsecurities

like equity shares carry higher risk compared to investments in
debtinstrumentslikedebentureandbonds.

SAFTEY:

The safety of an investment implies the certainty of return of capitalwithout loss of money
or time. Safely is another feature which an investor desires forhis investments. Every
investor expects to get back his capital on maturity without lossandwithoutdelay.

LIQUIDITY:

An investment which is easily saleable or marketable without loss ofmoney and without
loss of time is said to possess liquidity. Some investments
likecompanydeposits.P.O.Deposits,NSC,NSS,etc.arenotmarketable.

OBJECTIVESOFINVESTMENTS:

An investor has various alternative avenues of investment for his savings to flow to.Savings
kept as cash are barren and do not earn anything. Hence, savings are
investedinassetsdependingontheirriskandreturncharacteristics.Theobjectiveof theinvestors to
minimize the risk and return characteristics. This objective of the investor is
tominimizetheriskinvolvedininvestmentandmaximizethereturnfrom investment.

Thus,theobjectivesofaninvestorcanbestated
2
 INVESTMENTS

EQUITY PREFERENC DEBENTUR DERIVATIV MUTUAL

SHARE E SHARE ES/BONDS ES FUNDS

 Maximizationofreturn

 Minimizationofrisk

 Hedgeagainstinflation

Investmentvs.speculation:

Investment and speculation are two terms which are closely related. Both involvepurchase
of assets like shares and securities. Traditionally, investment is
distinguishedfromspeculationwithrespecttothreefactors,viz.(1)risk.
(2)capitalgainand(3)timeperiod.

TYPESOFINVESTMENTAVENUES:

EQUITY SHARES:

Equity means equal, Equity shares means distributing the capital equallyto the public at
large. These shares may be issued in face value or premiums. The returnsmay be high or
low according to the company performance. The return may be in terms
ofdividendorshares.

PreferenceShares:

Preference means, giving more interest to a particular shareholder who bought

thepreference shares. Comparing to the equity shares preference shares are more profitable
andsecure.

3
Debentures/Bonds:

Debentures are also a type of investment like equity or preference shares, but the
debentureisforlongterminvestmentwithfixedinterestandtime.Whereasbondisalsolikedebentur
ebut compare to debenture it is more secure where debenture is not. It is also a long-
terminvestmentwithfixedinterest.

Derivatives:

Derivatives is an emerging market on these days comparing to capital market. Inderivatives

we trade all types of commodities like Gold, Silver, Copper, Crude Oil,
Wheat,Sugaretc.WhereasincapitalmarketwetradeonlyEquityshares.Derivativesisa
worldwidemarket,itmaybetradedoncurrency,Indexes,Stocksetc.

Mutual Funds: A mutual fund is a pool of money managed by a professional Fund

Manager. It is a trust that collects money from a number of investors who share a common
investment objective and invests the same in equities, bonds, money market instruments
and/or other securities.

4
 OBJECTIVES OF THE STUDY

The following are the objectives of the study

• To present an overview of mutual funds in India.

• To evaluate the performance of different schemes of diversified and banking mutual funds.
• To understand the nature of various mutual fund schemes offered by Angel stock broking
limited.
• To analyze the trends in returns of selected mutual funds.
• To offer suitable suggestions based on findings of the study.

5
 SCOPE OF THE STUDY

 The study has been conducted to understand the position of the various mutual fund
schemes offered by Angel stock broking ltd.

 In this study analysis was made on various funds offered by Angel stock broking ltd.

 The study here has been limited to do analysis of six mutual funds offered by Angel
stock broking ltd.

 List of mutual funds considered for the study

1. Reliance Small Cap Fund.
2. Reliance Banking Fund.
3. ICICI Prudential Mid Cap Fund.
4. ICICI Prudential Banking and Financial Services Fund.
5. Sundaram Select Midcap Fund.
6. Sundaram Financial Services Opportunities Fund.

6
 NEED FOR THE STUDY

The basic purpose of the study is to give broad idea on mutual funds and analyze various
schemes to highlight the diversified investment that mutual fund offers to its investors.

 To study the basic concepts and trends in the mutual fund industry.
 The study enables a fresh investor to understand easily the various benefits offered by
Angel stock broking ltd
 On the growth and dividend schemes of various types of funds according to their
investment objective.
 The study provides a clear idea on growth of mutual funds from past to present scenario
and its scope in the future.
 The study will definitely help the company and the researcher to analyze the present
situation of various schemes and to know whether these funds are performing to their
expectations or not. Researcher has analyzed these mutual funds schemes with
performance measures like beta, standard deviation, etc.
 At the end of the study, one can conclude what type of investments would be ideal with
reference to the risk taking abilities of the investors and which type of investments
would suit their financial needs and analysis.

7
 METHODOLOGY OF THE STUDY

The collection of data refers to a planned gathering of information relevant to the subject matter
of the study from the units under investigation the method of collection of data depends mainly
upon the nature, objective and scope of the inquiry on one hand and available of resources and
time on the other hand. Data may be classified into primary and secondary data, depending upon
the nature and mode of collection.

Mainly the data is collected from

1)
Primary data

2)
Secondary data
Primary data

• Primary data is the first hand information and it is collected from internal
interview and discussion with various officials.
• Interaction with existing customers and new investors of mutual funds about their
experiences, interests. Data is collected through observational approach.
Secondary data:

The secondary data means the data that are already available i.e. they refer to the data,
which have already been collected and analyzed by someone else. Secondary data may either
be published data or unpublished data.
The following are the sources of secondary data
 Broachers of organization.
• Company manuals and records.
• Fact sheet and key information memorandum.
• Websites.
• News paper
• Journals
• Company website

8
 LIMITATIONS OF THE STUDY

• The study is conducted in a limited area only.

• There is a difficulty in getting a continuous data relating to a past period regarding the
mutual fund schemes.
• Lack of additional information due to confidential matters.

9
INDUSTRY PROFILE

MUTUAL FUNDSINDUSTRY:
The origin of mutual fund industry in India is with the introduction of the concept of
mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the
year 1987 when non-UTI players entered the industry. In the past decade, Indian mutual fund
industry had seen dramatic improvements, both quality wise as well as quantity wise. Before, the
monopoly of the market had seen an ending phase; the Assets under Management (AUM) was
Rs. 67bn. The private sector entry to the fund family raised the AUM to Rs. 470bn in March
1993 and till April 2004; it reached the height of 1,540bn.

The AUM of the Indian Mutual Funds Industry into comparison, the total of it is less than
the deposits of SBI alone, constitute less than 11% of the total deposits held by the India n
banking industry.

The main reason of its poor growth is that the mutual fund industry in India is new in the
country. Large sections of Indian investors are yet to be intellectuated with the concept. Hence, it
is the prime responsibility of all mutual fund companies, to market the product correctly abreast
of selling. The mutual fund industry can be broadly put into four phases according to the
development of the sector. Each phase is briefly described as under. FIRST PHASE – 1968:

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. 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 1978 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 1964. At the end of 1988 UTI had
Rs.6,700 cores of assets under management.

SECOND-PHASE 1987-1993:

Entry of non-UTI mutual funds. SBI Mutual Fund was the first 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 in 1989 and GIC
10
in 1990. The end of 1993 marked Rs.47, 004 as assets under management. THIRD PHASE –

1993-2000:

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 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 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI
(Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual 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 cores.
The Unit Trust of India with Rs.44, 541 cores of assets under management was way ahead of
other mutual funds.

FOURTH PHASE-SCIENCE FEB 2003:

This phase had bitter experience for UTI. It was bifurcated into two separate entities. One
is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29, 835 crores (as on
January 2003). 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 AUM 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
September, 2004, there were 29 funds, which manage assets of Rs.153108 cores under 421
schemes. On the Growth Track:

11
 After an initial slow growth, this four-decades aged industry slowly but steadily began to
see significant growth during the recent period of 1993-2005. The AUMs during this period
swelled phenomenally from mere Rs 47,000 crore in March 1993 to Rs 3,26,388 crore by March
2007.previously, the AUMs had been on a decline. The situation reversed as, riding on a positive
market sentiment, a slew of new offerings from mutual fund houses swelled the AUMs, which
stood at Rs 3,26,388 crore in March 2007. This was a revolutionary shift in the industry with an
all-round increase of Rs 94,080 crore in AUMs.

FUTURE OF MUTUAL FUNDS IN INDIA:

By March 2007, Indian mutual fund industry reached Rs 3, 26,388 crore. It is estimated
that by 2010 March-end, the total assets of all scheduled commercial banks should be Rs 40, 90,
000 crore.

The annual composite rate of growth is expected 13.4% during the rest of the decade. In
the last 5 years we have seen annual growth rate of 9%. According to the current growth rate, by
year 2010, mutual fund assets will be double.

ORGANISATION OF MUTUAL FUND:

All mutual funds comprise four constituents – Sponsors, Trustees, Asset Management
Company (AMC) and Custodians.
Sponsors:
The sponsors initiate the idea to set up a mutual fund. It could be a registered company,
scheduled bank or financial institution.

A sponsor has to satisfy certain conditions, such as capital, record (at least five years’
operation in financial services), default free dealings and general reputation of fairness.

Trust/ Board of Trustees:

Trustees hold a fiduciary responsibility towards unit holders by protecting their interests.
Trustees float and market schemes, and secure necessary approvals. They check if the AMC’s
investments are within well-defined limits, whether the fund’s assets are protected, and also
ensure that unit holders get their due returns. They also review any due diligence by the AMC.

12
For major decisions concerning the fund, they have to take the unit holders consent. They submit
reports every six months to SEBI; investors get an annual report. Trustees are paid annually out
of the fund’s assets – 0.5 percent of the weekly net asset value.

Fund Managers/ AMC:

They are the ones who manage money of the investors. An AMC takes decisions,
compensates investors through dividends, maintains proper accounting and information for
pricing of units, calculates the NAV, and provides information on listed schemes. It also exercises
due diligence on investments, and submits quarterly reports to the trustees. A fund’s
AMC can neither act for any other fund nor undertake any business other than asset management.
Its net worth should not fall below Rs. 10 crore. And, its fee should not exceed
1.25 percent if collections are below Rs. 100 crore and 1 percent if collections are above Rs. 100
crore. SEBI can pull up an AMC if it deviates from its prescribed role.

Custodian:
Often an independent organization, it takes custody of securities and other assets of
mutual fund. Its responsibilities include receipt and delivery of securities, collecting income-
distributing dividends, safekeeping of the units and segregating assets and settlements between
schemes. Their charges range between 0.15-0.2 percent of the net value of the holding.
Custodians can service more than one fund.

13
Mutual Fund Companies in India:

The concept of mutual funds in India dates back to the year 1963. The era between 1963
and 1987 marked the existence of only one mutual fund Company in India with Rs.67 bn assets
under management (AUM), by the end of its monopoly era, the Unit Trust of India (UTI). By the
end of the 80s decade, few other mutual fund companies in India took their position in mutual
fund market.

The new entries of mutual fund companies in India were SBI Mutual Fund, Can bank
Mutual Fund, Punjab National Bank Mutual Fund, Indian Bank Mutual Fund, Bank of India
Mutual Fund.

The succeeding decade showed a new horizon in Indian mutual fund industry. By the end
of 1993, the total AUM of the industry was Rs.470.04 bn.
The private sector funds started penetrating the fund families. In the same year the first
Mutual Fund Regulations came into existence with re-registering all mutual funds except UTI.
The regulations were further given a revised shape in 1996.

14
 Kothari Pioneer was the first private sector mutual fund company in India which has now

merged with Franklin Templeton. Just after ten years with private sector player penetration, the

total assets rose up to Rs.1218.05 bn. Today there are 33 mutual fund companies in India.

A.Bank Sponsored:

1. Joint Ventures - Predominantly Indian

- Canara Robeco Asset Management Company Ltd.

- SBI Funds Management Pvt. Ltd.

2. Joint Ventures - Predominantly Foreign

- Baroda Pioneer Asset Management Company Ltd.

3. Others

- IDBI Asset Management Ltd.

- UTI Asset Management Company Ltd

B. Institutions:

- LIC Mutual Fund Asset Management Company Ltd

C. Private Sector:

1.Indian

- Axis Asset Management Company Ltd.

- Benchmark Asset Management Company Pvt. Ltd.

- Deutsche Asset Management (India) Pvt. Ltd.

- Edelweiss Asset Management Ltd.

- Escorts Asset Management Ltd.

- IDFC Asset Management Company Pvt. Ltd.

- JM Financial Asset Management Pvt. Ltd.

15
 - Kotak Mahindra Asset Management Company Ltd

- L&T Investment Management Ltd.

- Motilal Oswal Asset Management Company Ltd.

- Peerless Funds Management Co. Ltd.

- Quantum Asset Management Co. Pvt. Ltd.

- Reliance Capital Asset Management Ltd.

- Religare Asset Management Company Ltd.

- Sahara Asset Management Company Pvt. Ltd.

- Tata Asset Management Ltd.

- Taurus Asset Management Company Ltd.

2. Foreign

- AIG Global Asset Management Company (India) Pvt. Ltd.

- FIL Fund Management Pvt. Ltd.

- Fortis Investment Management (India) Pvt. Ltd.

- Franklin Templeton Asset Management (I) Pvt. Ltd.

- Goldman Sachs Asset Management (I) Pvt. Ltd.

- Mirae Asset Global Investments (India) Pvt. Ltd.

- Pramerica Asset Managers Pvt. Ltd.

3. Joint Ventures - Predominantly Indian

- Birla Sun Life Asset Management Company Ltd.

- DSP Blackrock Investment Managers Pvt. Ltd.

16
 - HDFC Asset Management Company Ltd.

- ICICI Prudential Asset Mgmt.Company Ltd.

- Sundaram BNP Paribas Asset Management Company Ltd.

4. Joint Ventures - Predominantly Foreign

- AEGON Asset Management Company Pvt. Ltd.

- Bharti AXA Investment Managers Pvt. Ltd.

- HSBC Asset Management (India) Pvt. Ltd.

- ING Investment Management (India) Pvt. Ltd.

- JPMorgan Asset Management India Pvt. Ltd.

- Morgan Stanley Investment Management Pvt.ltd.

- Principal pnb Asset Management Co. Pvt. Ltd. - Shinsei Asset Management
(India) Pvt. ltd.

MAJOR MUTUAL FUND COMPANIES IN INDIA:

ABN AMRO Mutual Fund:

ABN AMRO Mutual Fund was setup on April 15, 2004 with ABN
AMRO Trustee (India) Pvt. ltd. As the Trustee Company. The AMC, ABN
AMRO Asset Management (India) Ltd. was incorporated on November 4,
2003.
Deutsche Bank A G is the custodian of ABN AMRO Mutual Fund.

Birla Sun Life Mutual Fund:

Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group
and Sun Life Financial. Sun Life Financial is a global organization
evolved in 1871 and is being represented in Canada, the US, the
Philippines, Japan, Indonesia and Bermuda apart from India. Birla Sun Life Mutual Fund follows
a conservative long-term approach to investment. Recently it crossed AUM of Rs. 10,000 crores.
17
Bank of Baroda Mutual Fund (BOB Mutual Fund) :

Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on

October 30, 1992 under the sponsorship of Bank of Baroda. BOB Asset
Management Company Limited is the AMC of BOB Mutual Fund and was incorporated on

November 5, 1992. Deutsche Bank AG is the custodian. HDFC Mutual Fund:

HDFC Mutual Fund was setup on June 30, 2000 with two sponsors namely Housing

Development Finance Corporation Limited and Standard

Life Investments Limited.

HSBC Mutual Fund:

HSBC Mutual Fund was setup on May 27, 2002 with HSBC
Securities and Capital Markets (India) Private Limited as the sponsor.
Board of Trustees , HSBC Mutual Fund acts as the Trustee Company of
HSBC Mutual Fund. ING Vysya Mutual Fund:

ING Vysya Mutual Fund was setup on February 11, 1999 with the same named

Trustee Company. It is a joint venture of Vysya and ING. The

AMC, ING Investment Management (India) Pvt. Ltd. was incorporated on April 6, 1998.

ICICI PRUDENTIAL Mutual Fund:

The mutual fund of ICICI is a joint venture with Prudential Plc.

of America, one of the largest life insurance companies in the US of A.
ICICI PRUDENTIAL Mutual Fund was setup on 13th of October,
1993 with two sponsors, Prudential Plc. and ICICI Ltd.

The Trustee Company formed is ICICI PRUDENTIAL Trust Ltd. and the AMC is ICICI

PRUDENTIAL Asset Management Company Limited incorporated on 22nd of June, 1993.

18
Sahara Mutual Fund:

Sahara Mutual Fund was set up on July 18, 1996 with Sahara
India Financial Corporation Ltd. as the sponsor. Sahara Asset
Management Company Private Limited incorporated on August 31, 1995 works as the AMC of
Sahara Mutual Fund. The paid-up capital of the AMC stands at Rs 25.8 crore.

State Bank of India Mutual Fund:

State Bank of India Mutual Fund is the first Bank

sponsored Mutual Fund to launch offshore fund, the India
Magnum Fund with a corpus of Rs. 225 cr. approximately. Today it is the largest Bank
sponsored Mutual Fund in India. They have already launched 35 Schemes out of which 15 have
already yielded handsome returns to investors. State Bank of India Mutual Fund has more than
Rs. 5,500cr as AUM. Now it has an investor base of over 8lakhs spread over 18 schemes. Tata
Mutual Fund:

Tata Mutual Fund (TMF) is a Trust under the Indian Trust Act, 1882.
The sponsors for Tata Mutual Fund are Tata Sons Ltd., and Tata
Investment Corporation Ltd. The investment manager is Tata Asset
Management Limited and its Tata Trustee Company Pvt. Limited. Tata Asset Management
Limited's is one of the fastest in the country with more than Rs. 7,703cr (as on April 30, 2005) of
AUM.

Kotak Mahindra Mutual Fund:

Kotak Mahindra Asset Management Company (KMAMC) is a

subsidiary of KMBL. It is presently having more than 1,99,818
investors in its various schemes. KMAMC started its operations in
December 1998. Kotak Mahindra Mutual Fund offers schemes catering to investors with varying

risk - return profiles. It was the first company to launch dedicated gilt scheme investing only in

government securities. Unit Trust of India Mutual Fund:

UTI Asset Management Company Private Limited,

19
established in Jan 14, 2003, manages the UTI Mutual Fund with the support of UTI Trustee
Company Private Limited. UTI Asset
Management Company presently manages a corpus of over Rs.20000 Crore. The sponsorers of
UTI Mutual Fund are Bank of Baroda (BOB), Punjab National Bank (PNB), State Bank of India
(SBI), and Life Insurance Corporation of India (LIC). The schemes of UTI Mutual Fund are

Liquid Funds, Income Funds, Asset Management Funds, Index Funds, Equity Funds and Balance

Funds. Reliance Mutual Fund:

Reliance Mutual Fund (RMF) was established as trust under

Indian Trusts Act, 1882. The sponsor of RMF is Reliance Capital
Limited and Reliance Capital Trustee Co. Limited is the Trustee. It was
registered on June 30, 1995 as Reliance Capital Mutual

Fund which was changed on March 11, 2004. Reliance Mutual Fund was formed for
launching of various schemes under which units are issued to the Public with a view to contribute
to the capital market and to provide investors the opportunities to make investments in diversified
securities.

Standard Chartered Mutual Fund:

Standard Chartered Mutual Fund was set up on March 13, 2000

sponsored by Standard Chartered Bank. The Trustee is Standard
Chartered Trustee Company Pvt. Ltd.

Standard Chartered Asset Management Company Pvt. Ltd. is the AMC which was

incorporated with SEBI on December 20, 1999. Franklin Templeton India Mutual

Fund:

The group, Frnaklin Templeton Investments is a

California (USA) based company with a global AUM of US$ 409.2
bn. (as of April 30, 2005). It is one of the largest financial
services groups in the world. Investors can buy or sell the
Mutual Fund through their financial advisor or through mail or through their website. They have
Open end Diversified Equity schemes, Open end Sector Equity schemes, Open end Hybrid
20
schemes, Open end Tax Saving schemes, Open end Income and Liquid schemes, Closed end
Income schemes and Open end Fund of Funds schemes to offer. Morgan Stanley Mutual Fund
India:

Morgan Stanley is a worldwide financial services

company and its leading in the market in securities,
investment management and credit services.
Morgan Stanley Investment Management (MISM) was established in the year 1975. It provides
customized asset management services and products to governments, corporations, pension funds
and non-profit organizations. Its services are also extended to high net worth individuals and
retail investors. In India it is known as Morgan Stanley Investment Management Private Limited
(MSIM India) and its AMC is Morgan Stanley Mutual Fund (MSMF). This is the first close end
diversified equity scheme serving the needs of Indian retail investors focusing on a long-term
capital appreciation.
Escorts Mutual Fund:

Escorts Mutual Fund was setup on April 15, 1996 with Escorts Finance Limited as its

sponsor. The Trustee Company is Escorts Investment Trust Limited. Its AMC was incorporated

on December 1, 1995 with the name Escorts Asset Management Limited. Alliance Capital

Mutual Fund:

Alliance Capital Mutual Fund was setup on

December 30, 1994 with Alliance Capital
Management Corp. of Delaware (USA) as sponsored. The Trustee is ACAM Trust Company Pvt.
Ltd. and AMC, the Alliance Capital Asset Management India (Pvt.) Ltd. with the corporate office
in Mumbai. Benchmark Mutual Fund:

Benchmark Mutual Fund was setup on June 12, 2001 with

Niche Financial Services Pvt. Ltd. as the sponsors and
Benchmark Trustee Company Pvt. Ltd. as the Trustee Company. Incorporated on October 16,
2000 and headquartered in Mumbai, Benchmark Asset Management Company Pvt. Ltd. is the

AMC.

21
Canbank Mutual Fund:

Canbank Mutual Fund was setup on December 19, 1987 with

Canara Bank acting as the sponsor. Canbank Investment Management
Services Ltd. incorporated on March 2, 1993 is the AMC. The Corporate
Office of the AMC is in Mumbai. Chola Mutual Fund:

Chola Mutual Fund under the sponsorship

of Cholamandalam Investment & Finance Company Ltd. was
setup on January 3, 1997. Cholamandalam Trustee Co. Ltd. is the
Trustee Company and AMC is Cholamandalam AMC Limited.
LIC Mutual Fund:

Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989.

It contributed Rs.2 crores towards the corpus of the Fund. LIC

Mutual Fund was constituted as a Trust in accordance with the provisions of the Indian
Trust Act, 1882.
The Company started its business on 29th April 1994. The Trustees of LIC

Mutual Fund have appointed Jeevan Bima Sahayog Asset Management Company Ltd as the

Investment Managers for LIC Mutual Fund.

GIC Mutual Fund:

GIC Mutual Fund, sponsored by General Insurance Corporation of India

(GIC), a Government of India undertaking and the four Public Sector
General Insurance Companies, viz. National Insurance Co. Ltd (NIC), The New
India Assurance Co. Ltd. (NIA), The Oriental Insurance Co. Ltd (OIC) and United India

Insurance Co. Ltd. (UII) and is constituted as a Trust in accordance with the provisions of the

Indian Trusts Act, 1882.

Future Outlook:

22
 The mutual funds industry has been growing annually at the rate of 9 per cent for the last
five years and is expected to double its AUM’s by the end of March 2010, according to AMFI.
Further, the annual composite growth rate of the industry is expected to be 13 per cent in the next
ten years. The industry, with less than ten schemes a decade ago, has 460 schemes today. The
schemes are more diverse and offer a wide array of choice to investors.

COMPANY PROFILE

23
 COMPANY OVERVIEW

INDIABULLS SECURITIES LTD is an Indianstockbrokerfirm established in may, 2000.

The company is a member of theBombay Stock Exchange,National Stock Exchangeof
India,National Commodity &Derivatives Exchange LimitedandMulti Commodity Exchange
ofIndia Limited. It is adepository participantwithCentral Depository Services Limited
(CDSL). The company has more than 8500 sub-brokers and franchisee outlets in more than
900 cities across India.

The company's services include onlinestock broking,depository services,commodity trading

andinvestment advisoryservices.Personal loansandinsuranceare also delivered by this
company. In 2006, Angel Broking also started itsportfolio managementservices,IPOsbusiness
andmutual fundsdistribution arm.

Type Public company

Industry Financial services

Headquarters : Gurgam
,
Haryana.

Key people :Mr. Banga

(Chairman & Managing Director)

24
 Stockbroker
Services
Equity trading
Commodities
Portfolio management services
Mutual funds
Life insurance
Health insurance
IPO
Depository services
Investment advisory

PRODUCT
Angel Broking has products such as Angel Eye, Angel BEE mutual fund app, Angel Speed
Pro, Angel Trade and Angel Swiftfor online trading. Angel Eye is a browser trading
application; SpeedPro is a trading platform application; Angel Trade offers an online trading
platform for share investors; and Swift is a trading app for small devices.

Angel Broking app has been incorporated with a machine learning technology called ARQ,
that keys in up to a billion data points and uses advanced nature-based algorithms,
quantitative analysis and the Nobel-prize winning Modern Portfolio Theoryto enable
personalized investment advice to help users get better returns on investments. ARQ is based
on a model where performance has been optimized to provide recommendations with high
probability of outperformance and strike rates. The model has been tested using scientific
back-testing and has also been validated based on its track record.

COMPANY BUSINESS

Equity trading
Commodities
Portfolio management services
Mutual funds
Life insurance
Personal loans

25
IPO
Depository services
Investment advisory

COMPANY PRESENCES
National-wide presences of 21 regional hubs present in 124 cities
Over 7850 sub-brokers and business associates.
More than 6.5lakh clients

ANGLE GROUP
Angle broking ltd
Angle capital and debt market ltd
Angle commodities broking ltd
Angle securities ltd

CORE VALUES OF COMPANY

Motto:
To have complete harmony between quality in process and continuous improvement to
deliver exceptional service that will delight our customers and client .

CRM policy-customer is the king:

Customer is the most important person in our premises. He is not dependent on us but we
are dependent on him he is not an interruption in our work but a part of it. we are not doing
him favors by serving it but he is doing favors on us by giving an oppournity to serve him.
BUSINESS PHISILOPHY
Ethical practice and transparency in our all dealing
Customer interest above all

26
 Always deliver fir what we have promise
Effective cost management

QUALITY ASSURANCE

We are committed to provide the world class services which exceed the expectation of our
customers achieved by team work and by a process of continuous improvement

History
Dinesh Thakkar started his business in 1987 with a capital of Five Lakhs Indian Rupees and
lost half of the money within eight months. In 1989, he started off again as a subbroker.
Later, Angel Broking was incorporated as awealth management, retail and corporate broking
firm in December, 1997. In November 1998, Angel Capital and Debt Market Ltd. gained
membership ofNational Stock Exchangeas a legal entity. The company opened its
commodity broking Division in April, 2004. In November 2007, Birla Sun Life Insurance
joined hands with Angel Broking for distribution of its insurance products. In 2007, theWorld
Bank'sarmInternational Finance Corporationbought an 18% stake in Angel Broking. In
January 2013, a probe found the company and two other entities involved in fraudulent and
unfair trade practices in transactions of shares of Sun Infoways during FebMay 2001. As a
result,SEBIrestrained from taking new clients for a period of two weeks. Angel filed an
appeal against the SEBI order which was dismissed by the Securities appellate tribunal.
Recently Angel Broking has filed for an IPO with SEBI for an amount of Rs 600cr. This
offer includes issuance of new shares worth Rs 300 crore and stake sale by promoters and
IFC selling Rs 120 crore worth of stake. Angel Group of Companies was brought to life by
Mr. Dinesh Thakkar. He ventured into stock trading with an intention to raise capital for his
own independent enterprise. However, he recognized the opportunity offered by the stock
27
market to serve individual investors. Thus India’s first retail-focused stock-broking house
was established in 1987. Under his leadership, Angel became the first broking house to
embrace new technology for faster, more effective and affordable services to retail
investors.Mr. Thakkar is valued for his understanding of the economy and the stockmarket.
The print and electronic media often seek his views on the market trend as well as
investment strategie.

GROUP:

Indiabulls is recent years has expended its reach in health care and financial services
where in it has multiple specialty hospital and labs which provided healthcare services and
multiple financial services such as secondary market equity services portfolio management
services, depository services etc. Angel Broking financial services group companies of Angel
Broking Limited, provide services in Equity, Commodity, and financial Services business .

INDIABULLS SECURITIES LTD is a Member of National Stock Exchange of India

and Bombay Stock Exchange of 13 India. Depository participant with National Securities
Depository Limited (NSDL) and Central Depository Services Limited (CDSL). A SEBI
approved portfolio manager .

OFFICES:
The company has offices located at prime locations in Gurgaon, haryana and chennai.
The offices are centrally located to cater to the requirements of Institutional and corporate
clients, and retail clients and for ease of operations due to proximity to stock exchanges and
banks.

COMMUNICATION:
The company has its disposal an efficient network of advance communication system
And intends to install CRM facility, besides this it is implementing interactive clients
Information dissemination system which enables clients to view their latest client

28
 information on web. It has an installed multiple WAN interconnect the branches to
communicate on real time basis.

MANAGEMENT:
Mr. Dinesh Thakkar is chief executive officer and Managing Director of Angel
Broking Limited. He is also the CEO&MD of the parent company Angel Broking Limited
and is managing the entire operation of both the company.CEO is supported by various HOD
who are creditable professional of there respective field and they are further working with
team of professional consisting of chartered accountants MBA with varied experience in
financial services and stock broking functions. The board of Directors consists of Mr. Amit
Majumdar as chairman and Mr.Rajeev Phadke, Mr. Vinay Agarwal, Mr. Nikhil Daxini as
Directors.
MISSION:
TO EMERGE AS A FUND HOUSE OF CHOICE OF THE SAVVY INDIA INVESTOR
OF TODAY’S TIMES.

VISION:
TO ACHIEVE A BALANCE BETWEEN SAFETY, LIQUIDITY,AND RETURNS TO
THE . UNITHOLDERS IN THE MOST ETHICAL AND TRANSPARENT MANNER.

CORPORATE STUCTURE:
The organization is led by individuals who are professionals and leaders in everysense
of the word. Exports in there respective domains, esteem members of board of Directors .

PRODUCTS & SERVICES:

Angle broking as products such as angel Eye, angle BEE mutual fund app, angel speed pro,
angel trade and swift for online trading. Angel eye is a browser trading application, speed pro
is a trading platform application, angel trade offers an online trading platform for share
investors and swift is a trading app for small devices.

29
Angel broking app has been incorporated with a machine learning technology called ARQ ,
that keys in up to a billion data points and uses advanced nature based algorithms ,
quantitative analysis and the nobelprice winning modern portfolio theory to enable
personalized investment advice to help uses get better returns investments. ARQ is based on
a model where performance as been optimized to provide recommendations with high
profitability of out performance and strike rates. The model been tested using scientific
backtesting and has also been validated based on its track record some of the services
provided by this company has follows:

Equity Trading
Commodity Trading
Mutual funds promotion
Depository services
Margin Financing
NRI-Desk Management proximity to stock exchanges and banks.

Equity Trading:
For the first time Angel Broking investing commodity the power to be associated with
the elite dealing rooms and freedom to execute trade on there own. That is one may trade
from their branches or trade own over the net and with that expertise and assistance.

Depository Services:
Angel Broking is among the few major Depository Participants holding securities worth
more than Rs.6000 crors under its management .RSL provides depository services investors
as a depository participant with NSDL and CDSL.16

• Commodity Trading:

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 Commodities are a word originated from the French word ‘commodity’ means
benefit profit Angel commodities Limited is a member of both the
exchange(MCX & NCDEX)that allows trading in all the commodities traded
at both the exchange .At present, trading in commodities is restricted to futures
contracts only.

• Benefits of Commodity Trading:

To investors: investors always look for alternative investments avenues where

they can diversify their funds to achieve their financial goals. In financial market,
commodities have rapidly emerged as a major investment tool as they help in
diversifying investments and to hedge against inflation , greatest threat to any
investor.

CORPORATE ADVISORY GROUP:

Corporate advisory group provides various solutions to corporate banks and FI son the
management of debit , equity and investments. The services extends from advising client to
earn maximum profit by investing through selected papers like MF/PMF etc.

PORTFOLIO MANAGEMENT SYSTEM:

Portfolio management services manage client’s wealth more efficiently reduces risk
by diversifying across assets , sectors and funds, and maximizing returns at managed levels
of risk .This service could also be called as “transparent collective investments”.

INVESTMENT BROKING DIVISION:

Angel Broking provides innovative, integrated and best – fit solutions to their
corporate customers, it is continuous endeavor to provide value enhancement through
diverse financial solution on an on-going basis , through products like corporate debt ,
private equity , IPO, ECB, FCCB, GDR/ADR etc.

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SATISFACTION LEVEL OF THE EXITING CLIENT S OF INDIABULLS
SECURITIES LTD ONTHE FOLLOWING PARAMETERS :

Services effectiveness
Handling queries
Problem handling
Product diversity
Relation with customer
Product knowledge of employees
Employee behavior
Technical expertise of employees
Employee motivation
Marketing strategies adopted by co.

Sales source Facilities provided by the co.

Promotional activities undertakan by the co.

Strengths:
 We believe we have the following competitive strengths:
 Our Company is one of the well known independent full-service retail broking house in
India in terms of active clients on NSE as of June 30, 2020.
 We ensure utmost client satisfaction by implementing advanced technology platforms and
digitisation.
 Strong client base through our online and digital platform and sub-broker network
 Significant market share in the cash and commodity segment
 We have proven a track record of continuous growth and strong financial performance.
Proven and experienced management team and execution strength

AWARDS

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• 2009 - 'Broking House with Largest Distribution Network' Award and 'Best Retail
Broking House' Award at BSE IPF-D&B Equity Broking Awards
• 2012 - BSE IPF-D&B Equity Broking Award for ‘Best Retail Broking House’ .
. 2012-13 - Among BSE Top 10 Performers in Equity Segment (Retail Trading) FY 201213
• 2013 - BSE-IPF D&B Equity Broking Award for ‘Broking House with Largest
Distribution Network’
• 2013 - BSE-IPF D&B Equity Broking Award for 'Best Retail Equity Broking House'
• 2013-14 - Awarded ‘Top Three Clients Traded Members in Equity’ by the BSE
• 2014 - BSE-IPF D&B Equity Broking Award for ‘Broking House with Largest
Distribution Network’
• 2014 - Global Marketing Excellence Award for 'Best Mobile trading application'  2017
- MCX Commodity broker of the year award

33
 MUTUAL FUND

A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market instruments
such as shares, debenture and other securities. Mutual funds are money-managing institutions set
up to professionally invest the money pooled in from the public. These schemes are managed by
Asset Management Companies (AMC), which are sponsored by different financial institutions or
companies. Each unit of these schemes reflects the share of investor in the respective fund and its
appreciation is judged by the Net Asset Value (NAV) of the scheme.

The Securities and Exchange Board of India (Mutual Funds) Regulations 1993 defines
mutual funds as “a fund established in the form of a trust by a sponsor, to raise monies by the
trustees through in the sales of units t o the public under one or more schemes‚ for investing in
security in accordance with these regulation”.

MUTUAL FUNDS – CONCEPT:

A mutual fund is an entity that pools the money of many investors its unit-holders to
invest in different securities. Investments may be in shares, debt securities, money market
securities or a combination of these. Those securities are professionally managed on behalf of the
unit-holders, and each investor holds a pro-rata share of the portfolio i.e. entitled to any profits
when the securities are sold, but subject to any losses in value as well.
Mutual funds perform different roles for the different constituents that participate in it.
There primary role is to assist investors in earning an income or building by participating in the
opportunities available in various securities and markets. It is possible for mutual funds to
structure a scheme for different kinds of investment objects. Thus the mutual funds structure
through its various schemes, makes it possible to tap a large corpus of money from diverse

34
investor. The money that is raised from investors, ultimately benefits governments, companies
and other entities directly and indirectly.

DEFINITIONS:
1.The Securities and Exchange Board of India (Mutual Funds ) Regulations 1993 defines
mutual funds as ‘ a fund established in the form of a trust by a sponsor, to raise monies by the
trustees through in the sales of units t o the public under one or more schemes‚ for investing in
security in accordance with these regulation.”

2. These mutual funds are referred to as Unit Trust in the U.K and as open end Investment
companies in the U.S.A.
Therefore defines an open end investment company as ‘ an organization formed for the
investment of funds obtained from individuals and institutional investors who in exchange for
the funds receive shares which can be redeemed at any times at their underlying asset values” –
KEY
3. Mutual Funds are corporation which pool funds by selling their own shares and reduce
risk by diversification.

4. Mutual Funds is a corporation ‚ which accept many from by investment and use the
same to by the stock ,loans bonds & short teeing de investment issued – WESTERN FRED
AND
BRIGHAM

HISTORY
The first mutual funds were established in Europe .One researcher credits a Dutch
merchant with creating the first mutual fund in 174.Mutual funds were introduced to the United
States in the 1890’s, and they became popular in the 1920’s.These early funds were generally
closed-end funds with a fixed number of shares that often traded at prices above the portfolio
value.

The first open-end mutual fund called the Massachusetts Investors Trust(now part of the

35
 MF family of funds),with redeemable shares was established on
March21,1924.However,closedfunds remained more popular than open-end funds throughout the

1920s.In 1929,open-end funds accounted for only 5% of the industry’s $27 billion in total assets.

Features of mutual funds:

Mutual funds provide an attractive investment choice because they

generally offer the following features

1. MANAGEMENT
The professional consultants have the specialized knowledge due to expertise and training in
evaluating investments. They have superiority in managing the portfolios due to expertise of
investing and continuous learning on the job.

2. SMALL SAVER
Mutual funds accommodate investors who don’t have a lot of money to invest by setting
relatively low rupee value for initial purchases or both. They also offer schemes that easily fit
into the budget of the investor.

3. LIQUIDITY
Mutual fund investors can readily redeem their shares at the current NAV plus any fees
and charges assessed on any time .Investments made in units give the advantage of liquidity to
the investor .The investor may purchase the units and sell them at any time in an open-ended
scheme. The small investor does not even have tofind any other investor in the stockexchange or
wait for the liquidity of his funds. The terms of payment on re-purchase are low.

4. DIVERSIFICATION

36
 It reduces risk because all stocks may not move in same direction .in the same proportion
at the same timeshares prices can move up or down. The investor should be aware of these risks
while making an investment decision.

Even with risks it is expected that the mutual funds are able to perform better than an
individual stock because a careful selection of securities over a diversified portfolio covering
large number of companies/industries is made and the portfolios’ constantly reviewed. Spreading
investments across a wide range of companies and industry sectors can help to lower risk.

5. ANALYSIS AND SELECTION OF SECURITIES

Mutual funds select a large share of equities in the case of growth schemes. Although this
has a greater risk and potential for capital appreciation is higher in growth schemes. Besides
growth schemes mutual funds also have income schemes. When they have income schemes they
invest in securities of a guaranteed return. They generally select a large share of fixed income
securities like debentures and bonds. All growth schemes are either close ended or open end.

6. PROFESSIONAL MANAGEMENT
Securities the fund purchases. This helps the investors in achieving a higher return than
he would gain by investing in individual Professional money managers research, select and
monitor the performance of the securities without professional help.

IMPORTANCE OF MUTUAL FUNDS

Mutual funds pool money from individuals and organizations to invest in stocks, bonds,
and other assets in different industry sectors and regions of the world. You can buy whole or
fractional fund units directly from fund companies or through your broker. The price of each
mutual fund unit reflects the market prices of the fund holdings, adjusted for management fees
and expenses.

37
Selection
You can choose from hundreds of mutual funds offered by dozens of mutual fund
companies. This wide selection gives you the flexibility to pick mutual funds that suit your
financial objectives and risk tolerance. For example, equity and growth funds are suitable for
aggressive investors who can tolerate periods of extreme market volatility. Balanced funds could
be suitable for a more moderate investor looking for both capital gains and income,
while bond funds would suit conservative investors who want preservation of capital and regular
income.

Diversification
Mutual funds are a cost-effective way to diversify your portfolio across different asset
categories and industry sectors. Instead of buying and monitoring potentially dozens of stocks,
you could buy a few mutual funds to achieve broad diversification at a fraction of the cost. For
example, equity funds offer an indirect way to invest in dozens of companies in different industry
sectors, while balanced funds offer exposure to both stocks and bonds.

Further diversification is possible within each asset category. For example, you could
buy mutual funds that specialize in certain industries within equities, such as technology and
energy. Similarly, international funds and emerging market funds are convenient ways to
diversify geographically.

Expertise
Professional money management expertise at a reasonable cost is another important
attribute of mutual funds. Fund managers typically have postgraduate finance degrees, and
several years of stock analysis and investment management experience. Mutual fund companies
use a combination of in-house research staff and the services of external research firms to
determine the composition of fund portfolios. Fund managers may use information technology
and sophisticated trading strategies to rebalance portfolios and hedge against market volatility .

Affordability
Mutual funds have leveled the playing field by bringing the financial markets closer to small
investors. For about the price of an average stock, you can participate in the capital gains and
38
dividend distributions of potentially dozens of companies. You do not have to spend a sizable
amount of your savings to invest in each one of these companies separately. Mutual fund
companies are able to spread research, commissions, and related expenses over a larger asset
base, which reduces the cost for individual fund investors. You can reduce the costs even further
by holding index mutual funds, which track major market and industry indexes. These funds
have low management fees and expenses because they do not have the research and trading costs
of actively managed funds.

ADVANTAGES OF MUTUAL FUNDS:

Benefits of Mutual funds:

Affordability:

A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the
investment objective scheme. An investor can buy in to a portfolio of equities, which would
otherwise be extremely expensive. Each unit holder thus gets an exposure to such portfolios with
an investment as modest as Rs.500/-
39
Diversification:
You must spread your investment across different securities (stocks, bonds, money market
instruments,
Real estate, fixed deposits etc.) and different sectors (auto, textile, information technology etc.)

Professional Management:
It is the Fund Manager's job to (a) find the best securities for the fund, given the fund's
stated investment objectives; and (b) keep track of investments and changes in market conditions
and adjust the mix of the portfolio, as and when required.

Variety:
Mutual funds offer a tremendous variety of schemes. This variety is beneficial in two
ways: first, it offers different types of schemes to investors with different needs and risk
appetites; secondly, it offers an opportunity to an investor to invest sums across a variety of
schemes, both debt and equity.

Tax Benefits:
Any income distributed after March 31, 2002 will be subject to tax in the assessment of
all Unit holders. However, as a measure of concession to Unit holders of open-ended equity
oriented funds, income distributions for the year ending March 31, 2003, will be taxed at a
concessional rate of 10.5%.

Regulations:
Securities Exchange Board of India (“SEBI”), the mutual funds regulator has clearly
defined rules, which govern mutual funds. These rules relate to the formation, administration and
management of mutual funds and also prescribe disclosure and accounting requirements.

Liquidity:
In open-ended mutual funds, you can redeem all or part of your units any time you wish

40
Convenience:
An investor can purchase or sell fund units directly from a fund, through a broker or a
financial planner. The investor may opt for a Systematic Investment Plan (“SIP”) or a Systematic
Withdrawal Advantage Plan (“SWAP”).

Flexibility:
Mutual Funds offering multiple schemes allow investors to switch easily between various
schemes. This flexibility gives the investor a convenient way to change the mix of his portfolio
over time.

Transparency:
Open-ended mutual funds disclose their Net Asset Value (“NAV”) daily and the entire
portfolio monthly. This level of transparency, where the investor himself sees the underlying
assets bought with his money, is unmatched by any other financial instrument.

DISADVANTAGES OF MUTUAL FUNDS:

Mutual funds have their drawbacks and may not be for everyone.

• No guarantee:
No investment is risk free. If the entire stock market declines in value, the value
of mutual fund shares will go down as well, no matter how balanced the portfolio.
Investors encounter fewer risks when they invest in mutual funds than when they buy
and sell stocks on their own.

• Fees and commissions:

All funds charge administrative fees to cover their day-to-day expenses. Some
funds also charge sales commissions or "loads" to compensate brokers, financial
consultants, or financial planners.
41
 • Taxes:
During a typical year, most actively managed mutual funds sell anywhere from 20
to 70 percent of the securities in their portfolios. If your fund makes a profit on its sales,
you will pay taxes on the income you receive, even if you reinvest the money you made.

Management risk:

When you invest in a mutual fund, you depend on the fund's manager to make the right
decisions regarding the fund's portfolio. If the manager does not perform as well as you had
hoped, you might not make as much money on your investment as you expected.

Risk/Return Trade-Off:
The most important relationship to understand is the risk-
return trade-off. Higher the risk greater the returns/loss and lower the risk lesser the returns/loss .

Market Risk:

42
 Sometimes prices and yields of all securities rise and fall. Broad outside influences
affecting the market in general lead to this. This is true, may it be big corporations or smaller
mid-sized companies.

This is known as Market Risk. A Systematic Investment Plan (“SIP”) that works on the
concept of Rupee Cost Averaging (“RCA”) might help mitigate this risk.

Credit Risk:
The debt servicing ability (may it be interest payments or repayment of principal) of a company
through its cash flows determines the Credit Risk faced by you. This credit risk is measured by
independent rating agencies like CRISIL who rate companies and their paper. A
‘AAA’ rating is considered the safest whereas a ‘D’ rating is considered poor credit quality. A
well-diversified portfolio might help mitigate this risk.

Interest risk:
In a free market economy interest rates are difficult if not impossible to predict. Changes
in interest rates affect the prices of bonds as well as equities. If interest rates rise the prices of
bonds fall and vice versa. Equity might be negatively affected as well in a rising interest rate
environment. A well-diversified portfolio might help mitigate this risk.

Political/Government policy Risk

Changes in government policy and political decision can change the investment environment.
They can create a favorable environment for investment or vice versa

MUTUAL FUNDS SCHEMES:

Types of Schemes:

43
Investment objectives:

Schemes can be classified by way of their stated investment objective such as Growth
Fund, Balanced Fund, and Income Fund etc.

Equity oriented Schemes:

These schemes, also commonly called Growth Schemes, seek to invest a majority of their
funds in equities and a small portion in money market instruments. Such schemes have the
potential to deliver superior returns over the long term. The NAV prices of equity fund fluctuates
with market value of the underlying stop which are influenced by external factors such as social,
political as well as economic. Reliance Growth Fund, Reliance Index Fund are examples of
equity schemes

44
The investment objectives of general-purpose equity schemes do not restrict them to invest in
specific industries or sectors. They thus have a diversified portfolio of companies across a large
spectrum of industries. While they are exposed to equity price risks, diversified general purpose
equity funds seek to reduce the sector or stock specific risks through diversification. They mainly
have market risk exposure. Reliance Growth Fund is a general-purpose equity scheme.

Sector Specific:
These schemes restrict their investing to one or more pre-defined sectors, e.g. technology
sector. Since they depend upon the performance of select sectors only, these schemes are
inherently more risky than general-purpose schemes. They are suited for informed investors who
wish to take a view and risk on the concerned sector.

Debt Based Schemes:

These schemes, also commonly called Income Schemes, invest in debt securities such as
corporate bonds, debentures and government securities. The prices of these schemes tend to be
more stable compared with equity schemes and most of the returns to the investors are generated
through dividends or steady capital appreciation. These schemes are ideal for conservative
investors or those not in a position to take higher equity risks, such as retired individuals.

45
However, as the money market schemes they do have a higher price fluctuation risk and
compared to a Gilt

fund they have a higher credit risk.

Income schemes:
These schemes invest in money markets, bonds and debentures of corporates with
medium and long-term maturities. These schemes primarily target current income instead of
capital appreciation. They therefore distribute a substantial part of their distributable surplus
tothe investor by way of dividend distribution. Reliance Income Fund, Reliance Short Term Plan
and Reliance Fixed Investment Plans are examples of bond schemes.

Liquid Income Schemes:

Similar to the Income scheme but with a shorter maturity than Income schemes. An
example of this scheme is the Reliance Liquid Fund.

Money Market Schemes:

These schemes invest in short term instruments such as commercial paper (“CP”),
certificates of deposit (“CD”), treasury bills (“T-Bill”) and overnight money (“Call”). The
schemes are the least volatile of all the types of schemes because of their investments in money

46
market instrument with short-term maturities. These schemes have become popular with
institutional investors and high net worth individuals having short-term surplus funds.

Gilt Funds:
This scheme primarily invests in Government Debt. Hence the investor usually does not
have to worry about credit risk since Government Debt is generally credit risk free. Reliance Gilt
Fund is an example of such a scheme.

Hybrid Schemes:
These schemes are commonly known as balanced schemes. These schemes invest in both
equities as well as debt. Reliance Balanced Fund is examples of hybrid schemes.

Special Schemes:

Index Schemes:

The primary purpose of an Index is to serve as a measure of the performance of the

market as a whole, or a specific sector of the market. An Index also serves as a relevant
benchmark to evaluate the performance of mutual funds. Some investors are interested in
investing in the market in general rather than investing in any specific fund. Such investors are
happy to receive the returns posted by the markets. Index Funds are launched and managed for
such investors. An example to such a fund is the Reliance Index Fund.

Tax Savings Schemes:

Investors (individuals and Hindu Undivided Families (“HUFs”)) are being encouraged to
invest in equity markets through Equity Linked Savings Scheme (“ELSS”) by offering them a tax
rebate. Units purchased cannot be assigned / transferred/ pledged / redeemed / switched – out
until completion of 3 years from the date of allotment of the respective Units.

The Scheme is subject to Securities & Exchange Board of India (Mutual Funds)
Regulations, 1996 and the notifications issued by the Ministry of Finance (Department of
Economic Affairs), Government of India regarding ELSS. Subject to such conditions and
limitations, as prescribed under Section 88 of the Income-tax Act, 1961, subscriptions to the

47
Units not exceeding Rs.10, 000 would be eligible to a deduction, from income tax, of an amount
equal to 20% of the amount subscribed. Reliance Tax Saver Funds.

Constitution:
Schemes can be classified as Closed-ended or Open-ended depending upon whether they
give the investor the option to redeem at any time (open-ended) or whether the investor has to
wait till maturity of the scheme.

Open ended Schemes:

The units offered by these schemes are available for sale and repurchase on any business
day at NAV based prices. Hence, the unit capital of the schemes keeps changing each day. Such
schemes thus offer very high liquidity to investors and are becoming increasingly popular in
India. Please note that an open-ended fund is NOT obliged to keep selling/issuing new units at all
times, and may stop issuing further subscription to new investors.

Closed Ended Schemes:

The unit capital of a close-ended product is fixed as it makes a one-time sale of fixed
number of units. These schemes are launched with an initial public offer (IPO) with a stated
maturity period after which the units are fully redeemed at NAV linked prices. In the interim,
investors can buy or sell units on the stock exchanges where they are listed. Unlike open-ended
schemes, the unit capital in closed-ended schemes usually remains unchanged. After an initial
closed period, the scheme may offer direct repurchase facility to the investors. Closed-ended
schemes are usually more illiquid as compared to open-ended schemes and hence trade at a
discount to the NAV. This discount tends towards the NAV closer to the maturity date of the
scheme.

Interval Schemes:
These schemes combine the features of open-ended and closed-ended schemes. They may
be traded on the stock exchange or may be open for sale or redemption during pre-determined
intervals at NAV based prices.

How do mutual fund scheme operate:-

48
Mutual fund scheme announce their investment objectives and seek investments from the
investor. Depending on how the scheme is structured, it may be open to accept money from
investors, either during a limited period only or at any time.

The investment that an investor makes in a scheme is translated into acertain number of units in
the scheme. Thus, investor in a scheme is issued units of the scheme.

Under the law every unit as a face value of rs.10.( however ,older schemes in the market may
have a different face value).The face value is relevant from an accounting perspective.The
number of units multiplied by its face value (rs.10) is the capital of the scheme – its unit capital.

Process of mutual fund:

49
The mutual funds collect money directly or through brokers from investors. Theses invested in
various instruments depending on the objective of the scheme. The income generated by selling
securities or capital appreciation of these securities is passed on to the investor in proportion to
their investment in the scheme. The investments or divided into units and the value of the units
will be reflected in net asset value (NAV) of the unit. NAV is the market value of the asset of the
scheme minus its liabilities. As per unit NAV is the net asset value of the scheme divided by the
number of units outstanding on the valuation date. Mutual fund companies provide daily net
asset value of their schemes to their investors. NAV is important, as it will determine the price at
which you buy or sell the units of a scheme. Depending on the load structure of the scheme, you
have to pay entry or exit load

Structure of mutual funds

50
 The mutual funds in India are regulated by SEBI MF Regulations, 1996. Under the
regulations mutual fund is formed as a public trust under the Indian Trusts Act, 1882.

These regulations stipulate a three tiered structure of entities – sponsor (creation),

trustees, and Asset Management Company (fund management) – for carrying out different
functions of a mutual fund, but place the primary responsibility on the trustees.

1) Sponsor
SEBI regulations define sponsor as any person who either itself or in association with another
body corporate establishes a mutual fund. Sponsor sets up a mutual fund to earn money by doing
fund management through its subsidiary company which acts as investment manager of the fund.
Largely, sponsor can be compared with a promoter of a company.

Eligibility of sponsor-

51
 Mutual fund involves managing retail investor’s money and hence, it becomes important to
ensure that it is run by entities with capabilities and professional merits. SEBI (mutual funds)
Regulations, 1996 specifies the following eligibility criteria in this regard:

• Sponsor is required to have financial services business experience of at least 5 years and
a positive Net worth in all the preceding five years.
• Sponsor’s Net worth in the immediately preceding year required to be more than the
capital contribution to AMC.
• Sponsor is required to be profit making in at least three out of the last five years
including last year.
• Sponsor must contribute at least 40 percent of the net worth of the Asset Management
Company. Any entity, which contributes at least 40 percent to the Net worth of an AMC,
is deemed sponsor and therefore is required to fulfill all the requirements given in 1 to 4.

2. Trustees
The trust is created through document called the trust deed which is executed by the fund
sponsor in favors of the trustees. Trustees manage the trust and are responsible to the investors in
the mutual funds.
They are the primary guardians of the unit-holders funds and assets. Trustees can be
formed in either of the following two ways- Board of Trustees, or a trustee company.

2(a) Obligations of trustees

Trustees ensure that the activities of the mutual fund are in accordance with SEBI (mutual
fund) regulations, 1996. They check that the AMC has proper systems and procedures in place.
Trustee also make sure that all the other fund constituents are appointer and that proper due
diligence is exercised by the AMC in the appointment of constituents and business associates.

2(b) Regulation regarding appointment of trustees-

Sponsor with prior approval of SEBI appoints trustees. There should be at least four
members in the board of trustees with at least 2/3 rd independent.

52
 A trustee of one mutual fund cannot be trustee of another mutual fund, unless he is an
independent trustee in both cases and has the approval of both boards. The trustee is appointed by
executing and registering a trust deed under the provisions of Indian Registration Act. This trust
deed also registered with SEBI.

2(c) Responsibilities of Trustees:

The trustees are required to fulfill several duties and obligations in accordance with SEBI
(mutual funds) Regulations, 1996 and the trust deed constituting the mutual fund.

These include:
1. The trustee and Asset Management Company enter into an investment Management
Agreement (IMA) with the approval from SEBI.

2. The investment management agreement shall contain such clauses as are mentioned in
the Fourth Schedule of the SEBI (MFs) Regulations, 1996 and other such clauses as are
necessary for making investments.

3. The trustees shall have a right to obtain from such the Asset Management Company
such information as is considered necessary by the trustees.

4. The trustee shall ensure before the launch of any scheme that the Asset Management
Company possesses/has done the following:

 Systems in place for its back office, dealing room and accounting.
 Appointed all key personnel including fund manager(s) for the schemes and submitted
their bio-data which shall contain the educational qualifications, past experience in the
securities market to SEBI, within 15 days of their appointment.
 Appointed auditors to audit its accounts.
 Appointed a compliance officer to comply with regulatory requirement and to redress
investor grievances.
 Appointed registers and laid down parameters for their supervision.

3. Asset Management Company

53
 The asset management company (AMC) is the investment manager of the trust. The sponsor, or
the trustees is so authorized by the trust deed, appoints the AMC as the “Investment Manager” of
the trust (Mutual funds) via an agreement called as ‘Investment Management Agreement’. An
asset management company is a company registered under the companies act, 1956.

3(a) Role of AMC

The AMC is an operational arm of the mutual fund AMC is responsible for all carrying out all
functions related to management of assets of the trust. The AMC structures various schemes,
launches the scheme and mobilizes initial amount, manages the funds and give services to the
investors. In fact, AMC is the first major constituent appointed. Later on AMC solicits the
services of other constituents like Registrar, Bankers, Brokers, Auditors, Lawyers etc and works
in close co-ordination with them.

3(b) Restrictions on business activities of the Asset Management Company

In India, regulator has ensured that an AMC focuses just on its core business and that the
activities of AMC’s are not in conflict of each other. These are ensured through the following
restrictions on the business activities of an AMC.

a. An AMC shall not undertake any business activity except in the nature of portfolio
management services, management and advisory services to offshore funds etc., provided
these activities are not in conflict with the activities of the mutual fund.

b. An AMC cannot invest in any of its own schemes unless full disclosure of its intention to
invest has been made in the offer document.

c. An AMC shall not act as a trustee of any mutual fund.

4. Custodian

54
 Though the securities bought and held in the name of the trustees, they are not kept with
them. The responsibility of safe keeping the securities is on the custodian. Securities, which are
in material form, are kept in safe custody of a custodian and securities, which are in
“Dematerialized” form, are kept with a depositary participant, who acts on the advice of
custodian.

Custodians keep the investment account of the mutual fund. They collect and account for
the dividends and interest receivables on mutual fund investments. They also keep track of
various corporate actions like bonus issue, rights issue, and stock split; buy back offers, open
offer etc and act on these as per instructions of the Investment manager.

Responsibility of custodian

Following are the responsibilities of a custodian:

• Provide post-trading and custodial services to the Mutual Fund.
• Keep securities and other instruments belonging to the Scheme in safe custody.
• Ensure smooth inflow/outflow of securities and such other instruments as and when
necessary, in the best interests of the unit holders.
• Ensure that the benefits due to the holdings of the Mutual Fund are recovered; and
• Be responsible for loss of or damage to the securities due to negligence on its part or on
the part of its approved agents.
5. Other constituents
Regulation imposes responsibility on the trustees to ensure that the AMC has proper system
and procedures in place and has appointed key personnel and other constituents like R&T agents,
brokers etc.

5(a) Registrar and transfer agent

A mutual fund manages money of many unit-holders across cities and towns of the
country. Investor servicing not only becomes important but challenging as well.

This would typically include processing investors’ application, recording the details of
investors, sending them account statements and other reports on periodical basis, processing

55
dividend payouts, making changes in investor details and keeping investor records updated by
adding details of new investors and by removing details of investors who withdraw their funds
from the mutual funds.

5(b) Auditor
Investor money is held by the trustees in trust. Regulation has ensured proper accounting
norms to ensure fair and responsible record keeping of investor’s money. Separate books of
account are maintained for each scheme of the mutual fund and individual annual report is
prepared. The books of accounts and the annual reports of the scheme are audited by auditors.

5(c) Brokers
Brokers are registered members of the stock exchange whose services are utilized by AMCs to
buy and sells securities on the stock exchanges. Many brokers also provide the Investment
Manager (AMC) with research reports on the performance of various companies, sector and
market outlook, investment recommendations etc.

14 Important steps taken by SEBI for the regulation of mutual funds are listed below:

(1) Formation:
Certain structural changes have also been made in the mutual fund industry, as part of which
mutual funds are required to set up asset management companies with fifty percent independent
directors, separate board of trustee companies, consisting of a minimum fifty percent of
independent trustees and to appoint independent custodians.

This is to ensure an arm’s length relationship between trustees, fund managers and custodians,
and is in contrast with the situation prevailing earlier in which all three functions were often
performed by one body which was usually the sponsor of the fund or a subsidiary of the sponsor.

(2) Registration:

56
 In January 1993, SEBI prescribed registration of mutual funds taking into account track
record of a sponsor, integrity in business transactions and financial soundness while granting
permission.

This will curb excessive growth of the mutual funds and protect investor’s interest by
registering only the sound promoters with a proven track record and financial strength. In
February 1993, SEBI cleared six private sector mutual funds viz. 20th Century Finance
Corporation, Industrial Credit & Investment Corporation of India, Tata Sons, Credit Capital
Finance Corporation, Ceat Financial Services and Apple Industries.

(3) Documents:
The offer documents of schemes launched by mutual funds and the scheme particulars are
required to be vetted by SEBI. A standard format for mutual fund prospectuses is being

(4) Code of formulated:

Mutual funds have been required to adhere to a code of advertisement.

(5) Assurance on returns:

SEBI has introduced a change in the Securities Control and Regulations Act governing
the mutual funds. Now the mutual funds were prevented from giving any assurance on the land
of returns they would be providing. However, under pressure from the mutual funds, SEBI
revised the guidelines allowing assurances on return subject to certain conditions.

Hence, only those mutual funds which have been in the market for at least five years are
allowed to assure a maximum return of 12 per cent only, for one year. With this, SEBI, by
default, allowed public sector mutual funds an advantage against the newly set up private mutual
funds.

As per basic tenets of investment, it can be justifiably argued that investments in the
capital market carried a certain amount of risk, and any investor investing in the markets with an
aim of making profit from capital appreciation, or otherwise, should also be prepared to bear the
risks of loss.
57
(6) Minimum corpus:
The current SEBI guidelines on mutual funds prescribe a minimum start-up corpus of
Rs.50cr for an open-ended scheme, and Rs.20cr corpuses for closed-ended scheme, failing which
application money has to be refunded.
The idea behind forwarding such a proposal to SEBI is that in the past, the minimum
corpus requirements have forced AMCs to solicit funds from corporate bodies, thus reducing
mutual funds into quasi-portfolio management outfits. In fact, the Association of Mutual Funds
in India (AMFI) has repeatedly appealed to the regulatory authorities for scrapping the minimum
corpus requirements.

(7) Institutionalization:
The efforts of SEBI have, in the last few years, been to institutionalize the market by
introducing proportionate allotment and increasing the minimum deposit amount to Rs.5000 etc.
These efforts are to channel the investment of individual investors into the mutual funds.

(8) Investment of funds mobilized:

In November 1992, SEBI increased the time limit from six months to nine months within
which the mutual funds have to invest resources raised from the latest tax saving schemes. The
guideline was issued to protect the mutual funds from the disadvantage of investing funds in the
bullish market at very high prices and suffering from poor NAV thereafter.

(9) Investment in money market:

SEBI guidelines say that mutual funds can invest a maximum of 25 per cent of resources
mobilized into money-market instruments in the first six months after closing the funds and a
maximum of 15 per cent of the corpus after six months to meet short term liquidity requirements.

(10) Valuation of investment:

The transparent and well understood declaration or Net Asset Values (NAVs) of mutual
fund schemes is an important issue in providing investors with information as to the performance
of the fund. SEBI has warned some mutual funds earlier of unhealthy market

58
 (11) Inspection:
SEBI inspect mutual funds every year. A full SEBI inspection of all the 27 mutual funds
was proposed to be done by the March 1996 to streamline their operations and protect the
investor’s interests. Mutual funds are monitored and inspected by SEBI to ensure compliance
with the regulations.
(12) Underwriting:
In July 1994, SEBI permitted mutual funds to take up underwriting of primary issues as a
part of their investment activity. This step may assist the mutual funds in diversifying their
business.
(13) Conduct:
In September 1994, it was clarified by SEBI that mutual funds shall not offer buy back
schemes or assured returns to corporate investors. The Regulations governing Mutual Funds and
Portfolio Managers ensure transparency in their functioning.

(14) Voting rights:

In September 1993, mutual funds were allowed to exercise their voting rights.
Department of Company Affairs has reportedly granted mutual funds the right to vote as
fullfledged shareholders in companies where they have equity investments.

All the public sector, private sector and those promoted by foreign entities are governed by
the same set of regulations by SEBI which is the controlling Authority.

• Unit Trust of India was the first mutual fund set up in India in the year 1963.
• In 1987 government allowed public sector banks and institutions to set up mutual funds.
• In 1992 Securities and Exchange Board of India (SEBI) Act was passed to formulate
pYolicies and regulate the mutual funds to `protect the interest of the investors.
• In 1993 mutual funds sponsored by private sector entities were allowed to enter the
capital market.
• In 1996 SEBI revised its regulations to protect the interest of the investors.
SEBI has also issued guidelines to mutual funds in order to make the mutual funds as secure as
possible for the investors.

59
DATA ANALYSIS
60
 TOOLS USED FOR DATA ANALYSIS

• AVERAGE RETURN
• STANDARD DEVIATION SHARPE RATIO

AVERAGE RETURN:

Average return is the simple mathematical average of a series of returns generated over a
period of time

Average Return (Rp):

= ∑Ri ÷ N

STANDARD DEVIATION:
If an asset’s return has no variability, it has no risk. An investor analyzing a series of
returns on an investment over a period of years need to know about the variability of its returns
or in other words the assets total risk. For determining total risk standard deviation is calculated.
The fund that has high standard deviation has high variability and thus has high risk and vice
versa

Formula = ( Average fund return Particular period fund return –)2
Number of returns
SHARPE RATIO:

The Sharpe ratio is a measure for calculating risk adjusted return and this ratio has
become the industry standard for such calculations. It was developed by Nobel laureate William
F.Sharpe. The Sharpe ratio is the average return earned in excess of the risk free rate per unit of
volatility or total risk

S = ( R p – Rf ) ÷ σp
Average of return on portfolio – average rate of return on a risk free investment
Standard deviation of portfolio

61
Table 5.1: Table showing Comparison of Axis Blue Chip Fund - Growth plan
& AXIS BANKING & PSU DEBT FUND- Growth plan performance for the
Year 2019

Percentage Change in NAV's in the year 2019

Month Axis blue chip Fund
Axis Banking & PSU debt
Fund
Jan 9.97 19.90
Feb 13.28 22.53
Mar 3.00 3.78
Apr 2.92 -0.88
May 0.00 -1.20
Jun -4.52 -7.32
Jul 6.24 10.90
Aug 0.57 0.19
Sep 1.98 -4.83
Oct 9.35 14.88
Nov 1.79 1.63
Dec 2.48 5.78
Average Return 3.905 5.8
Standard Deviation 4.57 9.26
Sharpe Ratio 0.715 4.98

Graph 5.1: Graph showing Comparison of Axis blue chip Fund - Growth
plan & Axis Banking & PSU Debt Fund - Growth plan performance for the
Year 2019

62
 25.00
Axis Blue Chip Fund
20.00
Axis baking &PSU fund
15.00

10.00

5.00

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5.00

-10.00

From the above diagram

In the year 2019, both Axis blue chip Fund - Growth plan & Axis Banking & PSU debt Fund -
Growth plan are showing positive and negative returns as well during the 12 months period.

 Standard Deviation for :

Axis blue chip Fund is 4.57 and

Axis Banking & PSU debt Fund is 9.26

 Sharpe Ratio for:
Axis blue chip Fund is 0.715 and

Axis Banking & PSU debt Fund is 4.98

Table 5.2: Table showing Comparison of Axis Blue Chip Fund - Growth plan
& Axis Banking & PSU Debt Fund Growth plan performance for the Year
2020

Percentage Change in NAV's in the year 2020

63
 Month Axis blue chip Fund
Axis Banking & PSU debt
Fund
Jan 2.28 1.25
Feb -6.48 -0.88
Mar -6.32 -9.45
Apr -1.57 -2.87
May 0.98 7.35
Jun -1.07 -0.08
Jul -2.21 -4.53
Aug -5.0 -15.91
Sep -1.28 -10.20
Oct 5.2 8.23
Nov 13.65 19.06
Dec 8.66 -2.05
Average Return 0.528 -0.865
Standard Deviation 6.40 9.76
Sharpe Ratio -0.77 -2.30

Graph 5.2: Graph showing Comparison of Axis Blue Chip Fund - Growth
plan & Axis Banking &PSU Debt Fund - Growth plan performance for the
Year 2020

64
 20 Axis blue chip Fund
15
Axis banking& PSU fund
10
5

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5
-10

-15

-20

From the above diagram

In the year 2020, both Axis blue chip Fund - Growth plan & Axis Banking &PSU debt Fund -
Growth plan are showing both positive and negative returns as well during 12 months period.

 Standard Deviation for:

Axis blue chip Fund is 6.40 and

Axis Banking &PSU debt Fund is 9.76.

 Sharpe Ratio for:

Axis blue chip Fund is -0.77 and Axis Banking &PSU debt Fund is -2.30

Table 5.3: Table showing Comparison of Axis Blue Chip Fund - Growth plan

65
& AXIS BANKING & PSU DEBT Fund- Growth plan performance for the
Year 2021

Percentage Change in NAV's in the year 2021

Month Axis blue chip Fund Axis Banking & PSU debt
Fund
Jan 5.38 7.66
Feb -4.90 -12.07
Mar 3.75 4.09
Apr 11.33 16.38
May 42.04 3.91
Jun -2.24 21.58
Jul 9.8 1.24
Aug 6.54 -1.86
Sep 4.54 4.33
Oct 0.32 -1.83
Nov -38.71 9.96
Dec 20.88 5.06

Average Return 4.824 5.03

Standard Deviation 19.87 9.5
Sharpe Ratio 1.52 5.96

From the above diagram

In the year 2021, both Axis blue chip Fund - Growth plan & Axis Banking &PSU debt Fund -
Growth plan are showing both positive and negative returns as well during 12 months period.

66
  Standard Deviation for :
Axis blue chip Fund is 19.87 and

Axis Banking &PSU debt Banking

Fund is 9.5
 Sharpe Ratio for :
Reliance Small Cap Fund is 1.52 and
Reliance Banking Fund is 5.96

67
Table 5.4: Table showing comparison of Axis Blue Chip Fund Growth plan
&Axis banking &PSU debt fund - Growth plan performance for the year 2022

Percentage Change in NAV's in the year 2022

Month Axis Blue Chip Fund Axis banking &PSU
debt fund
Jan 7.53 5.05
Feb 3.35 8.30
Mar -0.80 0.16
Apr -1.78 -6.80
May -2.50 -0.70
Jun 0.65 0.87
Jul 0.30 0.18
Aug 9.37 3.00
Sep -8.70 -11.90
Oct 4.20 4.80
Nov 6.25 0.53
Dec 2.99 -0.04

Average Return 1.749 0.262

Standard Deviation 4.86 5.5
Sharpe Ratio 1.25 -1.92

68
 10 Axis blue chip fund
Axis banking
5

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

-5

-10

-15

From the above diagram

In the year 2022, both Axis blue chip Fund - Growth plan & Axis Banking &PSU debt Fund -
Growth plan are showing positively and negatively returns as well during 12 months period.

 Standard Deviation for :

Axis blue chip Fund is 4.86 and

Axis Banking &PSU debt Fund is 5.5

 Sharpe Ratio for :
Axis blue chip Fund is 1.25 and Axis Banking
&PSU debt Fund is -1.92

69
 Table 5.5: Table showing comparison of Axis blue chip Fund - Growth plan &
Axis Banking & PSU Fund - Growth plan performance for the year 2023

Percentage Change in NAV's in the year 2023

Month Reliance Small Cap Reliance Banking
Jan 2.36 6.05
Feb -9.39 -9.55
Mar -10.62 -6.27
Apr 8.35 10.99
May 4.75 2.90
Jun 0.86 4.98
Jul 6.19 5.07
Aug 2.02 5.31
Sep 3.66 6.71
Oct 4.56 0.91
Nov 6.01 -0.85
Dec -8.27 -6.45

Average Return 0.87 1.810

Standard Deviation 6.74 6.47
Sharpe Ratio -0.19 0.72

Graph 5.5: Graph showing comparison of Reliance Small Cap Fund - Growth
plan & Reliance Banking Fund - Growth plan performance for the year 2023

70
 15.00
Axis blue chip fund
10.00 Axis Banking

5.00

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

-5.00

-10.00

-15.00

From the above graph

In the year 2023, both Axis blue chip Fund - Growth plan & Axis Banking & PSU Fund -
Growth plan are showing positively and negatively returns as well during 12 months period.

 Standard Deviation for :

Axis blue chip Fund is 6.74 and

Axis Banking &PSU debt Fund is 6.47

 Sharpe Ratio for :
Axis blue chip Fund is -0.19 and Axis Banking &PSU debt Fund is0.72

Table 5.6: Table showing comparison of ICICI Prudential Blue Chip Fund
Growth plan - ICICI Prudential Banking & Financial Services Fund – Growth
plan performance for the year 2019

Percentage Change in NAV's in the year 2019

Month ICICI Prudential blue chip ICICI Prudential Banking
fund

71
 Jan 12.19 20.01
Feb 19.88 22.92
Mar 5.55 3.52
Apr 1.36 2.37
May 1.49 -0.31
Jun -7.73 -8.38
Jul 5.10 11.85
Aug -2.36 2.22
Sep 0.52 -2.50
Oct 8.80 12.62
Nov 0.91 2.41
Dec 3.49 7.46

Average Return 4.605 6.310

Standard Deviation 6.97 8.45
Sharpe Ratio 4.82 6.86

Graph 5.6: Graph showing comparison of ICICI Prudential blue chip Fund
Growth plan ICICI Prudential Banking & Financial Services Fund – Growth
plan performance for the year 2019

72
 ICICI Prudential blue chip
25.00 ICICI Prudential Banking
20.00

15.00

10.00

5.00

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5.00

-10.00

From the above graph

In the year 2019, both ICICI Prudential blue chip Fund& ICICI Prudential Banking and Financial
Services Fund showing both positive and negative returns as well during 12 months period.

 Standard Deviation for :

ICICI Prudential blue chip Fund is 6.97
and ICICI Prudential Banking is 8.47.
 Sharpe Ratio for:
ICICI Prudential blue chip Fund is 4.82 and
ICICI Prudential Banking and Services is 6.86

Table 5.7: Table showing comparison of ICICI Prudential Blue chip Fund
Growth plan_ ICICI Prudential Banking & Financial Services Fund – Growth
plan performance for the year 2020

Percentage Change in NAV's in the year 2020

73
 Month ICICI Prudential blue chip fund ICICI Prudential Banking

Jan 2.29 0.55

Feb -1.44 -1.61
Mar 0.32 0.82
Apr -7.85 -9.65
May 0.66 6.98
Jun -1.43 -0.67
Jul -5.93 -3.98
Aug -6.32 -11.98
Sep -0.68 -7.95
Oct 7.03 7.82
Nov 10.06 15.36
Dec 7.42 0.44

Average Return 0.376 -0.277

Standard Deviation 5.87 8.7
Sharpe Ratio -1.11 -1.6

Table 5.7: Data representing comparison of ICICI Prudential blue chip Fund

74
–Growth plan ICICI Prudential Banking & Financial Services Fund – Growth
plan performance for the year 2020

20 ICICI Prudential blue chip

15 ICICI Prudential Banking

10

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5

-10

-15

From the above graph

In the year 2020, both ICICI prudential blue chip fund & ICICI Prudential banking and Financial
Services Fund showing both positive and negative returns as well during 12 months period.

 Standard Deviation for :

ICICI prudential blue chip fund is 5.87
and ICICI prudential banking Fund is 8.7
 Sharpe Ratio for :
ICICI prudential blue chip fund is -1.11
and ICICI prudential Fund is -1.6

75
 Fund –
Growth
Table 5.8: Table showing comparison of ICICI Prudential blue chip
Growth plan ICICI Prudential Banking & Financial Services Fund –
plan performance for the year 2021

Percentage Change in NAV's in the year 2018

Month ICICI Prudential blue chip ICICI Prudential Banking
Jan 2.31 6.37
Feb -4.23 -12.46
Mar 7.33 4.28
Apr 5.15 16.91
May 6.63 3.83
Jun 18.71 21.22
Jul 10.08 3.61
Aug 0.61 -2.52
Sep 6.18 5.26
Oct 2.52 -1.44
Nov 4.86 7.91
Dec 5.61 7.08

Average Return 5.569 4.987

Standard Deviation 5.70 9.10
Sharpe Ratio 13.40 6.5

76
 Fund –
Growth
Graph 5.8: Graph showing comparison of ICICI Prudential blue
chip Growth plan ICICI Prudential Banking & Financial Services
Fund – plan performance for the year 2021

25 ICICI Prudential blue chip

20 ICICI PrudentialBanking
15

10

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5

-10

-15

From the above graph

In the year 2021,both ICICI Prudential blue chip Fund& ICICI Prudential Banking and
Financial Services Fund showing positive and negative returns as well during 12 months period.

 Standard Deviation for :

ICICI Prudential blue chip Fund is 5.70 and
ICICI Prudential Banking and Financial Services Fund is 9.10
 Sharpe Ratio for :
 ICICI Prudential blue chip Fund is 13.40 and
ICICI Prudential Banking and Financial Services Fund is 6.5

77
 Fund –
Growth
Table 5.9: Graph showing comparison of ICICI Prudential blue chip
Growth plan ICICI Prudential Banking & Financial Services Fund –
plan performance for the year 2022

Percentage Change in NAV’s in the year 2022

ICICI Prudential
Month ICICI Prudential blue chip
Banking

Jan 5.08 7.28

Feb 5.12 4.62
Mar 0.8 -0.53
Apr -2.54 -5.35
May -1.86 -1.07
Jun 2.00 1.94
Jul -0.37 0.26
Aug 7.33 4.75
Sep -8.73 -11.10
Oct 0.61 4.08
Nov -0.90 -1.94
Dec 3.48 0.71

Average Return 0.906 0.25

Standard Deviation 4.35 4.70
Sharpe Ratio -0.48 -2.54

78
 Graph 5.9: Graph representing comparison of ICICI Prudential blue chip
Fund – Growth plan ICICI Prudential Banking & Financial Services Fund –
Growth plan performance for the year 2022

8 ICICI Prudential blue chip

id Cap
6
ICICI Prudential Banking
4
2
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-2
-4
-6
-8
-10
-12

From the above diagram

In the year 2022, both ICICI Prudential blue chip Fund& ICICI Prudential Banking and
Financial Services Fund showing positive and negative returns as well during 12 months period.

 Standard Deviation for :

ICICI prudential blue chip fund is
4.35 and ICICI prudential Fund is 4.70
 Sharpe Ratio for :
ICICI prudential blue chip fund is -0.48 and
ICICI Infrastructure Fund is -2.54

79
Table 5.10: Table showing comparison of ICICI Prudential blue chip Fund –
Growth plan ICICI Prudential Banking & Financial Services Fund – Growth
plan performance for the year 2023

Percentage Change in NAV’s in the year 2023

ICICI Prudential blue
Month chip ICICI Prudential Banking

Jan 3.26 -4.35

Feb -10.16 -7.81
Mar -5.60 -5.62
Apr 7.25 9.15
May 2.40 5.12
Jun -0.61 6.21
Jul 8.29 9.68
Aug 4.49 8.35
Sep 1.50 3.75
Oct 4.29 1.79
Nov 1.06 0.89
Dec -7.17 -7.26

Average Return 0.798 1.98

Standard Deviation 5.94 6.67
Sharpe Ratio -0.36 2.62

Graph 5.10: Graph showing comparison of ICICI Prudential blue chipFund –

Growth plan ICICI Prudential Banking & Financial Services Fund – Growth
plan performance for the year 2023

80
 ICICI Prudential blue chip
10.00
8.00 ICICI Prudential Banking
6.00
4.00
2.00
0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-2.00
-4.00
-6.00
-8.00
-10.00
-12.00

From the above diagram

In the year 2023, both ICICI Prudential blue chip Fund& ICICI Prudential Banking and
Financial Services Fund showing positive and negative returns as well during 12 months period.

 Standard Deviation for:

ICICI prudential blue chip fund is 5.94and

ICICI Infrastructure Fund is 6.67

 Sharpe Ratio for :
ICICI prudential blue chip fund is -0.396and
ICICI Infrastructure Fund is 2.62

81
Table 5.11:.Table showing comparison of SBI Blue chip SBI Financial Services
Opportunities Fund Regular Growth plan performance for the year 2019

Percentage Change in NAV's in the year 2019

Month SBI blue chip SBI Financial Services
Jan 7.55 22.50
Feb 12.61 24.9
Mar 4.18 3.01
Apr 1.59 0.25
May -2.72 -3.15
Jun -6.10 -10.95
Jul 6.18 11.90
Aug 2.48 -1.36
Sep 3.22 -5.68
Oct 9.41 14.90
Nov -1.12 0.07
Dec 3.76 6.39

Average Return 3.420 5.256

Standard Deviation 5.29 10.04
Sharpe Ratio 5.74 3.32

Graph 5.11: Graph showing comparison of SBI blue chipFund – Growth plans
Sundaram Financial Services Opportunities Fund Regular Growth plan
performance for the year 2019

82
 Fund – Growth plan

25.00
SBI blue chip Fund
20.00
SBIFinancial Services
15.00

10.00

5.00

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5.00

-10.00

-15.00

From the above diagram

In the year 2019, both SBI blue chip fund &SBI Financial Services Fund - are showing both
positive and negative returns as well during 12 months period.

 Standard Deviation for :

SBI blue chip fund is 5.29 and

SBI Financial Services is 10.04.

 Sharpe Ratio for:
SBI blue chip fund is 5.74 and

SBI Financial Services is 3.32

83
Table 5.12: Table showing comparison of SBI Blue chip SBI Financial Services
Fund Regular Growth plan performance for the year 2020

Percentage Change in NAV’s in the year 2020

SBI Financial
Month SBI blue chip fund Services

Jan 2.38 0.51

Feb -3.91 -0.50
Mar -6.07 -9.98
Apr 0.1 -2.16
May 1.7 7.96
Jun 0.65 -1.95
Jul -1.59 -4.5
Aug -7.81 -15.62
Sep -1.96 -9.71
Oct 7.45 7.62
Nov 6.30 17.31
Dec 3.41 -1.60

Average Return 0.064 -1.025

Standard Deviation 4.84 9.31
Sharpe Ratio -1.99 -2.41

Graph 5.12: Graph showing comparison of Fund – SBI blue chip fund-
Growth plans SBI Financial Services Fund Regular Growth plan performance
for the year 2020

84
 Fund – Growth plan
20
15
10
5
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5

-10
-15
-20

From the above graph

In the year 2020, both SBI blue chip fund & SBI Financial Services Fund - are showing both
positive and negative returns as well during 12 months period.

 Standard Deviation for :

SBI blue chip fund is 4.84and

SBI Financial Services Fund is 9.31

 Sharpe Ratio for :

SBI blue chip fund is -1.99 and
SBI Financial Services Fund is -2.41
Table 5.13: Graph showing comparison of SBI blue chip SBI Financial
Services Fund Regular Growth plan performance for the year 2021

Percentage Change in NAV’s in the year 2021

85
 Month SBI blue chip fund SBI Financial Services
Jan 2.31 5.32
Feb -6.32 -10.81
Mar 3.51 3.86
Apr 10.59 16.61
May 4.76 1.10
Jun 16.51 18.39
Jul 10.68 0.96
Aug -3.42 -1.7
Sep 7.76 5.48
Oct 3.23 -3.7
Nov 4.20 10.40
Dec 4.07 7.38

Average Return 4.827 4.444

Standard Deviation 6.46 8.88
Sharpe Ratio 9.60 5.43

86
 Growth SBI

Graph 5.13: Graph showing comparison of SBI blue chip Fund –

Financial Services Fund Regular Growth plan performance for the year 2021

20
SBI blue chip fund
15
SBI Financial Services
10

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5

-10

-15

From the above graph

In the year 2018, both SBI blue chip fund & SBI Financial Services Fund - are showing both
positive and negative returns as well during 12 months period.

 Standard Deviation for :

SBI blue chip fund is 6.46
Financial Services Fund is 8.88
 Sharpe Ratio for :
SBI blue chip Fund is 9.60and
SBI Financial Services Fund is 5.43

87
 – Growth SBI

Table 5.14: Table showing comparison of SBI blue chip

Financial Services Fund Regular Growth plan performance for the year 2022

Percentage Change in NAV's in the year 2022

Month SBI blue chip fund SBI Financial Services
Jan 5.70 7.31
Feb 6.67 6.06
Mar 1.51 1.03
Apr -0.43 -6.26
May -2.62 -1.51
Jun 2.71 0.71
Jul 1.62 0.01
Aug -1.66 2.40
Sep -0.41 -2.91
Oct 1.05 3.35
Nov 0.90 0.10
Dec 1.63 -0.12

Average Return 1.326 0.146

Standard Deviation 2.35 4.74
Sharpe Ratio 1.44 -2.29

Graph 5.14: Graph showing comparison of SBI blue chip fund

Financial Services Fund Regular Growth plan performance for the year 2022

88
 Fund – Growth SBI

8
6
4
2
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-2
-4
-6
-8
-10
-12

From the above graph

In the year 2019, both SBI blue chip fund & SBI Financial Services Fund - are showing both
positive and negative returns as well during 12 months period.

 Standard Deviation for :

SBI blue chip fund is 2.35 and
SBI Financial Services Fund is 4.74
 Sharpe Ratio for :
SBI blue chip fund is 1.44 and SBI Financial Services Fund is -2.89

89
 – Growth SBI

Table 5.15: Table showing comparison of SBI blue chip

Financial Services Fund Regular Growth plan performance for the year 2023

Percentage Change in NAV's in the year 2023

SBI Financial
Month SBI blue chip fund
Services

Jan -4.91 0.32

Feb -6.49 -10.9
Mar -8.19 -6.12
Apr 8.09 12.97
May 4.61 2.66
Jun 1.85 5.71
Jul 6.31 5.50
Aug 5.55 5.29
Sep 3.54 5.22
Oct 3.26 -0.35
Nov 2.80 -0.37
Dec -9.19 -5.50

Average Return 0.62 1.331

Standard Deviation 6.25 6.75
Sharpe Ratio 0.73 1.02

90
 –
Graph 5.15: Graph showing comparison of SBI blue chip fund Growth SBI
Financial Services Fund Regular Growth plan performance for the year 2023

15.00

10.00

5.00

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

-5.00

-10.00

-15.00

From the above diagram

In the year 2020, both SBI blue chip fund & SBI Financial Services Fund - are showing both
positive and negative returns as well during 12 months period.

 Standard Deviation for :

SBI blue chip fund is 6.25 and
SBI Financial Services Fund is 6.75

 Sharpe Ratio for :

Sundaram Select Midcap Fund is 0.73 and
SBI Financial Services Fund is 1.02

91
Table 5.16: Table showing the values of average return, standard deviation
and Sharpe ratio of reliance small cap fund and reliance banking fund for the
period of 2019-2023

S.NO YEAR FUND NAME AVERAGE STANDARD SHARPE

DEVIATION
RETURN RATIO

3.905 4.57 0.715

Axis blue chip Fund
1
2019
5.8 9.26 4.98
Axis Banking &
PSU debt Fund
0.528 6.40 -0.77
Axis blue chip Fund
2 2020
-0.865 9.76 -2.30
Axis Banking &
PSU debt Fund
4.824 19.87 1.52
Axis blue chip Fund
3 2021
5.03 9.5 5.96
Axis Banking &
PSU debt Fund
1.749 4.86 1.25
Axis blue chip Fund
4 2022
0.262 5.5 -1.92
Axis Banking &
PSU debt Fund
0.87 6.74 -0.19
Axis blue chip Fund
5 2023
1.810 6.47 0.72
Axis Banking &
PSU debt Fund

92
INTERPRETATION:

From the above consolidated statement it is observed that during the study period the highest
average return is recorded for Axis banking & PSU debt fund for the year 2019.i.e. 5.8, lowest
standard deviation is recorded for Axis blue chip Fund in the year 2022 i.e.4.57, lowest Sharpe
ratio is recorded for Axis blue chip fund in the year 2023 i.e.-0.19 and highest Sharpe ratio is
recorded for Axis banking & PSU debt Fund in the year 2021 i.e., 5.96

93
Graph 5.16: Graph showing average returns for Axis blue chip fund and Axis
Banking& PSU debt fund for the period of 2019-2023

Average Return
6

0
2013 2014 2015 2016 2017
-1

-2

Axis blue chip Fund Axis banking fund

Graph 5.16: Graph showing Standard Deviation for Axis blue chip fund and
Axis banking & PSU debt fund for the period of 2019-2023

Standard Deviation
25

20
15

10

0
2012 2014 2018 2016 2017

Axis blue chip Fund Axis Banking fund

94
Graph 5.16: Graph showing sharpe Ratio for Axis blue chip fund and Axis
banking &PSU debt fund for the period of 2019-2023

Sharpe Ratio
7
6
5
4
3
2
1
0
-1 2016 2 17 2018 2019 2020

-2
-3

Axis blue chip Fund Axis Banking fund

95
Table 5.17: Table showing the values of average return, standard deviation
and Sharpe ratio of ICICI prudential blue chip fund and ICICI Prudential
banking and services fund for the period of 2019-23.

S.NO YEAR FUND NAME AVERAGE STANDARD SHARPE

RETURN DEVIATION RATIO
ICICI Prudential blue
chip fund 4.605 6.97 4.82
ICICI Prudential
1 2019 Banking 6.310 8.45 6.86
ICICI Prudential blue
chip fund 0.376 5.87 -1.16
ICICI Prudential
2 2020
Banking -0.277 8.7 -1.6
ICICI Prudential blue
chip fund 5.569 5.70 13.40
ICICI Prudential
3 2021
Banking 4.987 9.10 6.5
ICICI Prudential blue
chip fund 0.906 4.35 -0.48
ICICI Prudential
4 2022
Banking 0.25 4.70 -2.54
ICICI Prudential blue
chip fund 0.798 5.94 -0.36
ICICI Prudential
5 2023
Banking 1.98 6.67 2.62
INTERPRETATION:
From the above consolidated statement it is observed that during the study period
the highest average return is recorded for ICICI Prudential Banking and Services
Fund in the year 2019i.e.6.310,lowest standard deviation is recorded for ICICI
Prudential blue chip Fund in the year 2022 i.e. 4.35,lowest Sharpe ratio is recorded
for ICICI Prudential blue chip Fund in the year 2023 i.e.-0.36 and the highest
Sharpe ratio is recorded for ICICI PRUDENTIAL BANKING & ServicesFund in
the year 2019 i.e., 6.86

96
Graph 5.17: Graph showing average returns for ICICI Prudential Blue chip
fund and ICICI Prudential Banking and services fund for the period of 2019-
2023

Average Return
7

0
2013 2014 2015 2016 2017
-1
ICICI PRUDENTIAL blue chip CAP ICICI PRUDENITAL BANKING AND SERVICES FUND

Graph 5.17: Graph showing Standard Deviation for ICICI Prudential Blue
chip fund and ICICI Prudential Banking and services fund for the period
of 2019-2023

StandardDeviation
10
9
8
7
6
5
4
3
2
1
0
2013 2014 2015 2016 2017
ICICI PRUDENTIAL Blue chip ICICI PRUDENITAL BANKING AND SERVICES FUND

97
Graph 5.17: Graph showing Sharpe ratio for ICICI Prudential Blue chip fund
and ICICI Prudential Banking and services fund for the period of 2019-2023

Sharpe Ratio
16
14
12
10
8
6
4
2
0
-2 2013 2014 2015 2016 2017

-4

ICICI PRUDENTIAL Blue chip fund ICICI PRUDENITAL BANKING ANSERVICES FUND

98
Table 5.18: Table showing the values of Average return, Standard deviation
and Sharpe ratio of SBI blue chip Fund and SBI Financial Services Fund for
the period of 2019-23.

S.NO YEAR FUND NAME AVERAGE STANDARD SHARPE

RETURN DEVIATION RATIO

SBI blue chip fund 3.420 5.29 5.74

1 2019 SBI Financial

Services 5.256 10.04 3.32

SBI blue chip fund 0.064 4.84 -1.99

2 2020 SBI Financial

Services -1.025 9.31 -2.41

SBI blue chip fund 4.827 6.46 9.60

2021
3 SBI Financial
Services 4.444 8.88 5.543

SBI blue chip fund 1.326 2.35 1.44

4 2022 SBI Financial

Services 0.146 4.74 -2.89

SBI blue chip fund 0.62 6.25 0.73

5 2023 SBI Financial

Services 1.313 6.75 1.02

99
INTERPRETATION:

From the above consolidated statement it is observed that during the study period the highest
average return is recorded for SBI Financial Services fund in the year 2019
i.e. 5.256 ,lowest standard deviation is recorded for SBI blue chip Fund in the year 2022 i.e. 2.35,
lowest Sharpe ratio is recorded for SBI Financial Services Fund in the year 2020i.e. -2.41 and the
highest Sharpe ratio is recorded for SBI blue chip Fund in the year 2021i.e., 9.60

100
Graph 5.18: Graph showing Average return for SBI Blue Chip fund and SBI
Financial Services fund for the period of 2019-2023

Average Return
6

0
2013 2014 2015 2016 2017
-1

-2

SBI blue chip fund SBI Financial Services fund

101
Graph 5.18: Graph showing Standard Deviation for SBI Blue Chip fund and
SBI Financial Services fund for the period of 2019-2023

Standard Deviation
12

10

0
2019 2020 2021 2022 2023

SBI blue chip fund SBI Financial Services fund

102
Graph 5.18: Graph showing Sharpe Ratio for SBI Blue chip fund and SBI
Financial Services fund for the period of 2019- 2023

SharpeRatio
12
10

0 2016 2 7 2018 2019 2020

-2
-4

SBIbluechipfund SBIFinancialServicesfund

103
 FINDINGS

From the data analysis of “A comparative analysis on Performance of Diversified

and Banking Mutual Funds, the following points are found out:

For the study, the selected equity mutual funds are taken i.e., Axis blue chip Fund - Growth plan,
Axis Banking & PSU debt Fund - Growth plan, SBI Blue chip fund, SBI Financial Services
Fund, ICICI Prudential Blue Chip Fund & ICICI Prudential Banking and Financial Services
Fund. And the data considered for the data analysis is five years (2016-2020) on monthly basis.
Return

 In 2019, when returns are considered for all the six schemes Axis Blue Chip Fund -
Growth plan, Axis Banking &PSU debt Fund - Growth plan, SBI Mid Blue Chip fund,
SBI Financial Services Fund, ICICI Prudential Blue Chip Fund & ICICI Prudential
Banking and Financial Services Fund, all the six schemes are showing positive returns.
 In 2020, when returns are considered for all the schemes, two schemes gave positive
returns i.e., Axis Blue Chip Fund - Growth plan, ICICI Prudential Blue Chip Fund and
remaining four schemes i.e., Axis Banking &PSU debt Fund - Growth plan, SBI Blue
Chip fund, SBI Financial Services Fund &ICICI Prudential Banking and Financial
Services Fund are showing negative results.
 In 2021, when returns are considered for all the six schemes Axis Blue Chip Fund -
Growth plan, Axis Banking & PSU debt Fund - Growth plan, SBI Blue Chip fund, SBI
Financial Services Fund, ICICI Prudential Blue Chip Fund& ICICI Prudential Banking
and Financial Services Fund all the six schemes are showing positive returns.
 In 2022, when returns are considered for all the schemes, three schemes gave positive
returns i.e., Axis Blue Chip Fund - Growth plan, SBI Blue Chip fund, ICICI Prudential
Blue Chip Fund and remaining three schemes i.e., Axis Banking & PSU debt Fund -
Growth plan, SBI Financial Services Fund &ICICI Prudential Banking and Financial
Services Fund are showing negative results.

 In 2023, when returns are considered for all the six schemes Axis Blue Chip Fund -

104
 Growth plan, Axis Banking & PSU debt Fund - Growth plan, SBI Blue Chip fund, SBI
Financial Services Fund, ICICI Prudential Blue Chip Fund& ICICI Prudential Banking
and Financial Services Fund all the six schemes are showing positive returns.

RISK
 In the year 2019, the Risk was high for SBI Financial Services Fund i.e., 10.04 when
compared to the other mutual funds schemes.
 In the year 2020, The Risk was more for Axis Banking &PSU debt Fund - Growth plan
i.e., 9.76 when compared to the other mutual funds schemes.
 In the year 2021, The Risk was more for Axis Blue Chip Fund - Growth plan i.e.,
19.87 when comparing to the other mutual funds schemes.
 In the year 2022, The Risk was more for Axis Banking &PSU debt Fund - Growth plan
i.e., 5.5 when comparing to the other mutual funds schemes.
 In the year 2023, The Risk was more for Axis Blue Chip Fund - Growth plan i.e., 6.74
when comparing to the other mutual funds schemes.

SHARPE PERIOD:

 In the year 2019, the Sharpe ratio was high for the ICICI Prudential Banking and
Services Fund i.e.6.86 when compared to other mutual fund schemes.
 In the year 2020, the Sharpe ratio becomes negative for all the schemes, SBI Financial
Services Fund is -2.41 when compared to other mutual fund schemes.
 In the year 2021, the Sharpe ratio was high for ICICI Prudential Blue Chip Fund i.e.
13.40 when comparing to other mutual fund schemes.
 In the year 2022, the Sharpe ratio was high for SBI Blue Chip Fund i.e. 1.44 when
comparing to other mutual fund schemes.
 In the year 2023, the Sharpe ratio was high for ICICI Prudential Banking And Services
Fund i.e. 2.62 when compared to other mutual fund schemes.

105
 SUGGESTIONS

After careful observation of data analysis the investments in Mutual funds are very profitable.
The following few suggestions were given which would help the investor to maximize the return
and minimize the risk.

• Funds should be classified along with risk return analysis by using average return Sharpe
ratio, and standard deviation.
• A comparative study on mutual funds should be made so as to assist the organization in
its vision in order to give personalizes advice to its clients regarding appropriate scheme
based on their risk profile.
• Since the standard deviation of Axis Blue Chip Fund is high, investing in this kind of
fund is not suitable for conservative investors.
• Funds that hold high standard deviation value suits for the investors who opts for Risk.
Hence the company should clearly be defined about the risk taking capacity of an
investor.
• Investor who are risk averse and who looks for assured returns can invest in the SBI Blue
Chip Fund which are offering highest average return.
• Based on the analysis investing in ICICI mutual funds is very profitable that too in closed
ended funds.
• ICIC funds are giving more yields, so Investors can choose ICICI funds in their Portfolio.
• The investor must analyze and invest in the schemes according to the present economic
crisis.

106
 BIBLOGRAPHY

The readings listed here had proved to be helpful in learning and completion of my
project

TITLE AUTHOR

SECURITY ANALYSIS DOGULAS HAMILTON BELLEMORE

FINANCIAL MANAGEMENT IM PANDEY

INVESTMENT ANALYSIS AND PORTFOLIO PRASANNA CHANDRA,TATA MC GRAW

HILL PUBLICATIONS

SECURITY ANALYSIS AND PORTFOLIO S. KEVIN

MANAGEMENT

Magazines:

• Business world-the mutual fund industry

Websites:

• www.mutualfundsindia.com
• www.sebi.com
• www.angelbroking.com