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A REPORT ON

ANALYSIS OF MUTUAL FUNDS

By

Manaswi Gandhi
IBS Mumbai

Analysis Of Mutual Funds And Data Analysis

FINAL REPORT ON

ANALYSIS OF MUTUAL FUNDS


Submitted To:
Facult !uide:
P"o#$ Mo%a&da' Nai" (IBS) MUMBAI*

+om,a& !uide:
Dee,ali Pa"-a" (Relatio&'%i, Ma&a.e") Ma%i&d"a Fi&a&ce*

Submitted b : Ma&a'/i !a&d%i 0 12 BS 2314

(IBS) Mumbai*

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Analysis Of Mutual Funds And Data Analysis

Acknowledgement:
T%i' "e,o"t i' a ' &e".i'tic ,"oduct o# ma& mi&d'$ It be.a& o& 25"d Feb"ua" ) 2114) t%e da I /a' i&ducted a' a 'umme" t"ai&ee at MA6INDRA FINAN+E$ A' a& Amateu" to t%e co",o"ate e&7i"o&me&t) t%i' t"ai&i&. at MA6INDRA FINAN+E %a' bee& a 7e" i&'i.%t#ul$ I am ."ate#ul #o" t%e i&',i"atio& a&d /i'dom o# ma& ,eo,le #o" t%ei" i&'i.%t' a&d e&cou"a.eme&t$ I me&tio& t%e &ame' o# all t%o'e ,eo,le /%o %a7e e&"ic%ed a&d im,"o7ed m t%i&-i&. t%"ou.% t%ei" co&7e"'atio&'$ T%e team membe"' i& t%e mutual #u&d' a"e Dee,ali Pa"-a" (Relatio&'%i, Ma&a.e"*) M"'$ U88a/la) Mi'' +%et&a 9ot/al$ But /it%out t%e &ame' o# 'ome ,eo,le t%i' ,"o8ect "e,o"t /ould &ot be ,o''ible$ T%i' "e,o"t %a' bee& a&al :ed a&d '%a",e&ed b t%e i&tellectual ,"oce''$ Fi"'t a&d #o"emo't) I /ould li-e to e;,"e'' m 'i&ce"e "e.a"d' to m ,"o8ect .uide Dee,ali Pa"-a" (Relatio&'%i, Ma&a.e"*$ 6e" 7i'io& a&d t%e 7aluable time t%at '%e '%a"ed /it% me /ill al/a ' be a 'ou"ce o# i&',i"atio& #o" me$ T%e& I /ould to t%a&- ou" #acult .uide) M"$ Mo%a&da' Nai" (P"o#e''o") IBS) Mumbai* /%o let me to i&itiate t%e ,"o8ect a&d ,"o7ided 7aluable 'u..e'tio& a&d .uida&ce du"i&. t%e /%ole ,"o8ect$ 6i' ,e"',ecti7e %a' e&cou"a.ed me to i&co",o"ate a di##e"e&t dime&'io& to t%e ,"o8ect$ I al'o e;,"e'' m 'i&ce"e t%a&-' to m #ello/ 'tude&t' du"i&. t%e ,"o8ect) 'ta## o# MA6INDRA FINAN+E) a&d all ,eo,le "elated to me #o" t%ei" co&ti&ued 'u,,o"t < a,,"eciatio&

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Analysis Of Mutual Funds And Data Analysis

Table of Contents
S. No. 3$ 2$ 5$ >$ =$ @$ 2$ 4$ ?$ 31$ 33$ 32$ 35$ 3>$ 3=$ 3@$ 32$ 34$ Contents E;ecuti7e Summa" +om,a& B"ie# Ab't"act I&t"oductio& 6i'to" o# Mutual Fu&d Mutual Fu&d St"uctu"e T ,e' o# Mutual Fu&d A% Mutual Fu&dB Mutual #u&d 6ou'e' i& I&dia Ri'- A&al 'i' +alculatio& O# Ri'Ri'- Ad8u'ted Pe"#o"ma&ce Ri'- a&d Retu"& !lobal Mutual #u&dCI&dia& Mutual Fu&d T%e ELSS Ad7a&ta.e Ne/ +o&ce,t Fact' a&d Fi.u"e Re#e"e&ce' Page No. 13 12 1= 12 1? 33 3> 34 52 55 5@ >1 >2 >@ =1 =2 @= @2

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Analysis Of Mutual Funds And Data Analysis

!ecuti"e Summa#y
I %a7e do&e m SIP /it% MA6INDRA FINAN+E #"om 25 "d Feb"ua" ) 2114 to 2>t% Ma 2114$ I /a' a''i.&ed t%e #ollo/i&. ,"o8ect':- $esea#c% Analysis of Mutual Fund &ndust#y. - Dist#ibution of Mutual Funds. P#ofile key #esult a#ea 0 U&de"'ta&di&. T%e Im,o"ta&ce o# A&al 'i' o# Mutual Fu&d I&du't" $ $e'o#ting:- I %a7e to "e,o"t Dee,ali Pa"-a" (Relatio&'%i, Ma&a.e"*) /%o acted a' a me&to" #o" t%e ,"o8ect (ow did & a''ly my lea#ning at &)S* Du"i&. t%e ,"o8ect m lea"&i&. i& cla''"oom (ca'e 'tud ) a''i.&me&t* ,"o7ed to be 7e" u'e#ul$ At time' I "e#e""ed to m &ote' a&d 'tud mate"ial$ +ea#ning du#ing S&P: I lea"&t a lot du"i&. t%e ,"o8ect$ Fi"'tl ) it ,"o7ided me t%e muc% &eeded co",o"ate e;,o'u"e (bu'i&e'' commu&icatio&) a&d bei&. a&'/e"able to t%e 'e&io"'*$ Seco&dl ) t%e ,"o8ect %el,ed me t%e .ai& i&'i.%t i&to mutual #u&d i&du't" $ P#e'a#ation,Ac%ie"ement,$ecognition: I be.a& u&de"'ta&di&. t%e 7a"iou' /ealt% ma&a.eme&t o,tio& .i7e& b t%e com,a& to it' clie&t'$

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Analysis Of Mutual Funds And Data Analysis

Com'any )#ief

-ision. St#ategy and Positioning


Ou" .oal i' to be t%e ,"e#e""ed ,"o7ide" o# "etail #i&a&ci&. 'e"7ice' i& t%e "u"al a&d 'emi -u"ba& a"ea' o# I&dia$ Ou" 't"ate. i' to ,"o7ide t%e la".e't "a&.e o# #i&a&cial 'e"7ice' to ou" co&'ume"' t%"ou.% ou" e;te&'i7e &et/o"- o# b"a&c%e') ',"ead out o7e" I&dia$ Ae /ould li-e to ,o'itio& ou"'el7e' a' t%e luc"ati7e o,tio& bet/ee& t%e o".a&i:ed ba&-i&. 'ecto" a&d t%e mo&e le&de"') ,"o7idi&. ou" cu'tome"' /it% a mi; o# ,e"'o&ali:ed) #le;ible a&d e##icie&t le&di&. 'e"7ice'$

About ou# +ogo:


A&a&d Rat%i i' /"itte& i& .old lette"i&. /it% a ."ee& bac-."ou&d$ It 'ta&d' #o" tu"&i&. ou" mo&e to .old$ !"ee& i' t%e colou" o# mo&e a&d ."o/t%$ T%e .old lette"i&. i&dicate' /ealt% a&d ,"o',e"it $ T%e #o&t i' cla'' a&d 'e"iou'$ It .i7e' a ,e"'o&al #eel) a 'e&'e o# 'ecu"it o# ou" mo&e bei&. i& 'a#e %a&d'$ T%e ba'eli&e Dbe%i&d e7e" 'ucce''#ul i&7e'to"E i' u&de"'tated$ T%atF' -ee,i&. i& li&e /it% ou" ,%ilo'o,% o# bei&. clie&t ce&t"ic$ T%e #ocu' i' o& clie&t$ Ae 8u't /o"- be%i&d t%e 'ce&e' to ma-e mo&e #o" clie&t$

Com'any P#ofile:
Ma%i&d"a < Ma%i&d"a Fi&a&cial Se"7ice' Limited) a &o&-ba&-i&. #i&a&ce com,a& ) e&.a.e' i& lea'e a&d %i"e ,u"c%a'e #i&a&ce bu'i&e'' i& I&dia$ T%e com,a& ,"o7ide' #i&a&ce #o" utilit 7e%icle') t"acto"') a&d ca"' #o" "u"al a&d 'emi-u"ba& ma"-et'$ It al'o o##e"' #i&a&ce #o" t/o /%eele"') #a"m eGui,me&t) -@-

Analysis Of Mutual Funds And Data Analysis

comme"cial 7e%icle') a&d co&'t"uctio& eGui,me&t$ I& additio&) Ma%i&d"a < Ma%i&d"a Fi&a&cial Se"7ice' ,"o7ide' i&7e'tme&t ad7i'o" 'e"7ice'$ A' o# Ma"c% 53) 2112) it %ad >15 b"a&c%e'$ T%e com,a& /a' #ou&ded i& 3??3$ It /a' #o"me"l -&o/& a' Ma;i Moto"' Fi&a&cial Se"7ice' Limited a&d c%a&.ed it' &ame to Ma%i&d"a < Ma%i&d"a Fi&a&cial Se"7ice' Limited i& 3??2$ T%e com,a& i' ba'ed i& Mumbai) I&dia$ Ma%i&d"a < Ma%i&d"a Fi&a&cial Se"7ice' Limited i' a 'ub'idia" o# Ma%i&d"a < Ma%i&d"a Limited$ Rece&tl /e %a7e "ecei7ed t%e &ece''a" ,e"mi''io& #"om Re'e"7e Ba&- o# I&dia (RBI* to 'ta"t t%e di't"ibutio& o# Mutual Fu&d ,"oduct' t%"ou.% ou" &et/o"-$ 6it%e"to /e /e"e o&l ,a"tici,ati&. i& t%e liabilit "eGui"eme&t' o# ou" cu'tome"' but /it% a mutual #u&d di't"ibutio& bu'i&e'') /e ca& al'o ,a"tici,ate i& t%ei" a''et allocatio&$ A%e& it come' to i&7e'ti&.) e7e" o&e %a' u&iGue &eed' ba'ed o& t%ei" o/& ob8ecti7e' a&d "i'- ,"o#ile$ A%ile ma& i&7e'tme&t a7e&ue' 'uc% a' #i;ed de,o'it') bo&d' etc$ e;i't) it i' u'uall 'ee& t%at eGuitie' t ,icall out,e"#o"m t%e'e i&7e'tme&t') o7e" a lo&.e" ,e"iod o# time$ 6e&ce /e a"e o# t%e o,i&io& t%at) ' 'tematic i&7e'tme&t i& eGuit allo/' o&e to c"eate 'ub'ta&tial /ealt%$ 6o/e7e") i&7e'ti&. i& eGuit i' &ot a' 'im,le a' i&7e'ti&. i& bo&d' o" ba&de,o'it') becau'e o&l ,"o,e" allocatio& o# ,o"t#olio .i7e' ma;imum "etu"&' /it% mode"ate "i'-) a&d t%i' "eGui"e' e;,e"ti'e a&d time$ Ou" I&7e'tme&t Ad7i'o" Se"7ice' %el, ou i&7e't ou" mo&e i& eGuit t%"ou.% di##e"e&t Mutual Fu&d Sc%eme'$ Ae e&'u"e t%e be't #o" ou" clie&t' b ide&ti# i&. ,"oduct' be't 'uited to i&di7idual &eed'$

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Analysis Of Mutual Funds And Data Analysis

Key Events In Business History


3??5 +omme&ced #i&a&ci&. o# M<M UH' 3??= O,e&ed #i"'t b"a&c% out'ide Mumbai) at Iai,u" 3??@ +omme&ced #i&a&ci&. M<M deale"' #o" ,u"c%a'e o# t"acto"' 3??4 Lau&c%ed ,ilot ,"o8ect #o" "etail t"acto" #i&a&ci&. 3??? +omme&ced t"acto" "etail #i&a&ci&. i& "u"al a&d 'emi-u"ba& a"ea' 2113 Total A''et' c"o''ed R'$ 31 billio& 2112 +omme&ced #i&a&ci&. o# &o&-M<M 7e%icle' Recei7ed Tie" II debt #"om I&te"&atio&al Fi&a&ce +o",o"atio& Made #i"'t 'ecu"iti:atio& t"a&'actio& o# R'$ >5>$4 millio& 211> Recei7ed a lo&.-te"m c"edit "ati&. o# AAJCStable O,e&ed a b"a&c% i& Po"t Blai" Li'ti&. o# &o& co&7e"tible debe&tu"e' o& BSE o& t%e /%ole'ale debt ma"-et 'e.me&t Secu"iti:atio& o# t"acto" a''et' o# R'$ 2=@$@ millio& 211= Tied u, /it% 6P+L Made MIBL a /%oll o/&ed 'ub'idia" 211@ I''ued IPO Tied u, /it% Ma"uti Lau&c%ed ma"-eti&. cam,ai.& Reac%ed a &e/ be&c%ma"- /it% >11 b"a&c%e'

Abst#act
T%e i&7e'tme&t o,tio& I am deali&. /it% i':Mutual Fund

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Analysis Of Mutual Funds And Data Analysis

P#o/ect:
A&al 'i' O# Mutual Fu&d' I&du't" A&d Data A&al 'i'$

Ob/ecti"e:
T%e ob8ecti7e o# t%i' 'tud /a' to .et t%e a/a"e&e'' o# t%e mutual #u&d it) i&7e'ti&. i& MUTUAL FUND H' i&du't" ) 7a"iou' 'c%eme' o##e"ed b

I&7e'tme&t ,"oduct' "i'- i& Mutual #u&d i&7e'tme&t etc$

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Analysis Of Mutual Funds And Data Analysis

ANAYLASIS OF MUTUAL FUND INDUSTRY

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Analysis Of Mutual Funds And Data Analysis

P6ASE 3
&nt#oduction
DPut ou" mo&e i& t"u't) &ot t"u't i& mo&e E e&tice' t%e 'mall i&7e'to"') /%o .e&e"all lac- e;,e"ti'e to i&7e't o& t%ei" o/& i& t%ei" 'ecu"itie' ma"-et a&d ,"e#e" 'ome -i&d o# collecti7e i&7e'tme&t 7e%icle') /%ic% ca& ,ool t%e ma".i&al "e'ou"ce'$ A Mutual Fu&d i' a t"u't t%at ,ool' t%e 'a7i&. o# a &umbe" o# i&7e'to" /%o '%a"e' a commo& #i&a&cial .oal$ T%e mo&e t%u' collected i' t%e& i&7e'ted i& ca,ital ma"-et 'uc% a' '%a"e') debe&tu"e' a&d ot%e" 'ecu"itie'$ T%e i&come ea"&ed t%"ou.% t%e'e i&7e'tme&t' a&d t%e ca,ital a,,"eciatio& "eali:ed a"e '%a"e' b it' u&itE' %olde"' i& ,"o,o"tio& to t%e &umbe" o# u&it' o/&ed b t%em$ T%u' a mutual #u&d i' t%e mo't 'uitable i&7e'tme&t #o" t%e commo& ma& a' it o##e"' a& o,,o"tu&it to i&7e't i& a di7e"'i#ied) ,"o#e''io&all ma&a.ed ba'-et o# 'ecu"itie' at a "elati7el lo/ co't$ T%e #lo/c%a"t belo/ de'c"ibe' b"oadl t%e /o"-i&. o# mutual #u&d:-

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Analysis Of Mutual Funds And Data Analysis

0%at is a Mutual Fund* A 7e%icle #o" i&7e'ti&. i& 'toc-' a&d bo&d'$ A Mutual Fu&d i' &ot a& alte"&ati7e i&7e'tme&t o,tio& to 'toc-' a&d bo&d'K "at%e" it ,ool' t%e mo&e o# 'e7e"al i&7e'to"' a&d i&7e't' t%i' i& 'toc-') bo&d') mo&e ma"-et i&'t"ume&t a&d ot%e" t ,e' o# 'ecu"itie'$ Bu i&. a Mutual Fu&d i' li-e bu i&. a 'mall 'lice o# a bi. ,i::a$ T%e o/&e" o# t%e mutual #u&d' u&it' .et' ,"o,o"tio&al '%a"e' o# t%e #u&d' .ai&') lo''e') i&come a&d e;,e&'e'$ ac% Mutual Fund %as a s'ecific stated ob/ecti"e:1 T%e #u&d ob8ecti7e i' laid out i& t%e #u&d' ,"o',ectu') /%ic% i' t%e le.al docume&t t%at co&tai&' i&#o"matio& about t%e #u&d) it' %i'to" ) it' o##ice"' a&d it' ,e"#o"ma&ce$ Some ,o,ula" ob8ecti7e' o# a mutual #u&d a"e:Funds Objective EGuit (!"o/t%* Debt (I&come* Mo&e Ma"-et (i&cl$ !ilt* Bala&ced What the fund will invest in O&l i& 'toc-' O&l i& #i;ed i&come 'ect$ I& '%o"t te"m mo&e i&'t$ Pa"tl i& 'toc-' a&d ,a"tl i&come 'ecu"itie'$

i& Fi;ed

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Analysis Of Mutual Funds And Data Analysis

(isto#y Of Mutual Fund


T%e Mutual Fu&d i&du't" i& I&dia 'ta"ted i& 3?@5/it% t%e #o"matio& o# U&it T"u't o# I&dia) at t%e i&itiati7e o# "e'e"7e ba&- <.o7e"&me&t o# I&dia$ T%e ob8ecti7e t%e& /a' to att"act t%e 'mall i&7e'to"' < i&t"oduce t%em to ma"-et i&7e'tme&t) t%e %i'to" o# Mutual Fu&d' i& I&dia ca& be b"oadl di7ided i&to 'i; ,%a'e'$

P%ase2 32456124789 :#owt% of ;nit T#ust Of &ndia


I& 3?@5) UTI /a' e'tabli'%ed b a& act o# ,a"liame&t$ A' it /a' t%e o&l e&tit o##e"i&. Mutual Fu&d' i& I&dia) it /a' a mo&o,ol o,tio&all UTI /a' 'et u, b RBI but late" deli&-ed #"om RBI$ T%e #i"'t 'c%eme lau&c%ed b UTI /a' u&it 'c%eme 3?@>)it /a' #i"'t o,e& e&ded 'c%eme i& t%e cou&t" $ I& 3?21 di##e"e&t 'c%eme to 'uit' &eed' o# di##e"e&t cla'' o# i&7e'to" lau&c%ed b UTI$ Si; &e/ 'c%eme /e"e i&t"oduced bet/ee& 3?43 to 3?4> du"i&. 3?4>-4= &e/ 'c%eme 'uc% a' c%ild"e& .i#t ."o/t% #u&d <ma'te" '%a"e /e"e lau&c%ed$ Du"i&. 3??1 )UTI cate"ed to t%e dema&d #o" i&come 0o"ie&ted 'c%eme b lau&c%i&. mo&t%l i&come 'c%eme) a 'ome /%at u&u'ual mutual #u&d ,"oduct o##e"i&. a''u"ed "etu"&'$ I& 3?4> i&7e'tible #u&d co",u' /a' about R'$@11c"$ < b 3?42-44 AUM o# UTI %ad ."o/& to @211c"$

P%ase < 324781244=9: nt#y of 'ublic secto# funds


3?42 ma"-ed t%e e&t" o# ot%e" ,ublic 'ecto" mutual #u&d'$ SBI e'tabli'%ed t%e #i"'t &o& UTI 0 mutual #u&d i& No7embe" 3?42$ T%i' /a' #ollo/ed b +a&a"a Ba&- Mutual Fu&d) LI+ Mutual Fu&d) Ba&- o# I&dia Mutual Fu&d) I&dia& Mutual Fu&d) PNB Mutual Fu&d$ F"om 3?42-44- 3??2-?5 t%e a''et u&de" ma&a.eme&t i&c"ea'ed #"om @211c" to >211>c"$

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Analysis Of Mutual Funds And Data Analysis

P%ase =3244=124459 me#gence of '#i"ate funds


A &e/ e"a o# mutual #u&d' i&du't" be.a& i& 3??5 /it% t%e ,e"mi''io& ."a&ted #o" e&t" o# ,"i7ate 'ecto" #u&d'$ Fo"ei.& #u&d ma&a.eme&t com,a&ie' /e"e al'o allo/ed to o,e"ate mutual #u&d') mo't o# t%em comi&. to I&dia t%"ou.%out 8oi&t 7e&tu"e' /it% I&dia& ,"omote"'$

P%ase 632445124449 :#owt% > S )& #egulation


Si&ce3??@) t%e mutual #u&d i&du't" i& I&dia 'a/ ti.%te" "e.ulatio& a&d %i.%e" ."o/t% )it 'caled &e/ %ei.%t' i& te"m' o# mobili:atio& o# #u&d'< &umbe" o# ,la e"'$ De"e.ulatio& <libe"ali:atio& o# t%e I&dia& eco&om %a' i&t"oduced com,etitio& a&d ,"o7ided im,etu'$ To ."o/t% o# i&du't" mutual #u&d i& I&dia "e.ulated b SEBI t%e bud.et o. u&io& .o7e"&me&t i& 3??? too- a bi. 'te, i& e;em,ti&. all mutual #u&d di7ide&d #"om i&come ta; i& t%e %a&d' o# i&7e'to"'$

P%ase ?324441<@@69 me#gence of la#ge > unifo#m indust#y


I& 2115 u&it t"u't o# i&dia &o lo&.e" %a' a ',ecial le.al 'tatu' a' a t"u't e'tabli'%ed b ,a"liame&t i&'tead$ I' t%e ,"e'e&t &ame o# t%e e"'t/%ile u&it t"u't o# I&dia$ No/ UTI mutual #u&d i' &o/ u&de" t%e SEBI "e.ulatio&$ I& 3??@ UTI mutual #u&d i' t%e la".e't ,la e" i& I&dia& #u&d i&du't" $ All SEBI com,lai&t 'c%eme o# t%e e"'t/%ile UTI u&de" it' c%a".e$ Ot%e" 'c%eme' (US-@>* o# UTI %a7e bee& ,laced /it% a ',ecial u&de"ta-i&. admi&i't"ated b t%e .o7e"&me&t o# I&dia$ I& 3??? ma"-ed t%e be.i&&i&. o# a &e/ ,%a'e i& t%e %i'to" o# mutual #u&d i&du't" i& I&dia$

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Analysis Of Mutual Funds And Data Analysis

Mutual Fund St#uctu#e


A mutual #u&d i' 'et u, i& t%e #o"m o# a t"u't) /%ic% %a' ',o&'o") t"u'tee') A''et Ma&a.eme&t +om,a& a&d cu'todia&$ T%e t"u't i' e'tabli'%ed b ',o&'o" o" mo"e t%a& o&e ',o&'o" /%o i' li-e ,"omote" o# a com,a& $AM+ a,,"o7ed b SEBI ma&a.e' t%e #u&d' b ma-i&. i&7e'tme&t' i& 7a"iou' t ,e' o# 'ecu"itie'$ T%e mo&ito" t%e ,e"#o"ma&ce a&d com,lia&ce o# SEBI "e.ulatio& b t%e mutual #u&d'$ T%e 't"uctu"e o# a mutual #u&d %ou'e ca& be /ell u&de"'tood /it% t%e e;am,le .i7e& belo/:-

&m'o#tant Te#ms in Mutual Fund


29 Net Asset -alue3NA-9:
NAH de&ote' t%e ,e"#o"ma&ce o# a ,a"ticula" 'c%eme o# a mutual #u&d$ Mutual #u&d i&7e't t%e mo&e collected #"om t%e i&7e'to"' i& 'ecu"itie' ma"-et$ I& 'im,le /o"d') NAH i' t%e ma"-et 7alue o# t%e 'ecu"itie' %eld b t%e 'c%eme$ Si&ce ma"-et 7alue o# t%e 'ecu"itie' c%a&.e' e7e" da ) NAH o# a 'c%eme al'o 7a"ie' o& da to da ba'i'$ NAH i' "eGui"ed to be

-3=-

Analysis Of Mutual Funds And Data Analysis

di'clo'ed b

t%e mutual #u&d' o& a "e.ula" ba'i' 0dail

o" /ee-l -

de,e&di&. o& t%e time o# 'c%eme$

<9

!'enses:
AM+' c%a".e a& a&&ual #ee') o" e;,e&'e "atio t%at co7e"' admi&i't"ati7e e;,e&'e') 'ala"ie') ad7e"ti'i&. e;,e&'e') etc$ A 3$=Le;,e&'e "atio mea&' t%e AM+ c%a".e' R' 3$=1 #o" e7e" R' 311 i& AUM$ A #u&d e;,e&'e "atio i' t ,icall to t%e 'i:e o# t%e #u&d' u&de" ma&a.eme&t a&d &ot to t%e "etu"& ea"&ed$ No"mall ) t%e co't o# "u&&i&. a #u&d ."o/ 'lo/e" t%a& t%e ."o/t% i& t%e #u&d 'i:e 0'o) t%e mo"e a''et i& t%e #u&d )t%e lo/e" '%ould be it' e;,e&'e "atio$ T%e e;,e&'e' ,"o,o"tio& u&de" 7a"iou' %ead' i' '%o/ belo/:

=9

nt#y +oad:
T%e co't o# t%e #u&d ma&a.eme&t ,"oce'' t%at i&clude' ma"-eti&. a&d i&itial co't a"e c%a".ed /%e& ou e&te" t%e 'c%eme$ T%e'e c%a".e' a"e te"med t%e e&t" load) t%e additio&al c%a".e /e ,a /%e& /e 8oi& t%e 'c%eme$ A&d i# t%e"e i' &o load) t%e bold #o&t i& t%e &e/ 'c%eme' ad 'a ' M&o e&t" loadN$

69

!it +oad:
Iu't li-e e&t" load' im,o'e a #ee /%e& /e lea7e t%e 'c%eme i$e$ /e "edeem ou" u&it') called t%e e;it load$ Load' a"e u'uall &ot #lat amou&t but %a7e a 't"uctu"e$ Needle'' to 'a ) load' i# a& a"e o&l a,,licable to o,e& 'c%eme' a&d &ot clo'e e&ded 'c%eme' becau'e /e ca& o&l bu 'uc% u&it' #"om t%e #u&d' o&l /%e& t%e 'c%eme i' lau&c%ed$

-3@-

Analysis Of Mutual Funds And Data Analysis

Note: A' ,e" SEBI "e.ulatio&) t%e ma;imum e;it load a,,licable i' @L$t%e"e i' a #u"t%e" 'ti,ulatio& b SEBI t%at t%e e&t" load a&d e;it load ,ut to.et%e" ca&&ot e;ceed @Lo# t%e 'ale ,"ice$

?9

Contingent Defe##ed Sales +oad:


+DSL i' a c%a".e im,o'ed /%e& t%e u&it' o# t%e #u&d' a"e "edeemed du"i&. t%e #i"'t #e/ ea"' o# o/&e"'%i,$ U&de" t%e SEBI "e.ulatio&) a #u&d ca& c%a".e +DSL to u&it %olde"' e;iti&. #"om t%e 'c%eme /it%i& t%e #i"'t #ou" ea"' o# e&t" $

-32-

Analysis Of Mutual Funds And Data Analysis

Ty'es Of Mutual Fund Sc%emes


29 O'en1ended Funds:
At a& time du"i&. t%e 'c%eme ,e"iod) i&7e'to"' ca& e&te" a&d e;it t%e #u&d 'c%eme (b bu i&.C'elli&. #u&d u&it'* at it' NAH (&et o# a& load c%a".e*$ I&c"ea'i&.l ) AM+' a"e i''ui&. mo'tl #u&d'$ o,e& e&ded

<9

Close1ended Funds:
A clo'e e&ded #u&d' o" 'c%eme %a' a 'ti,ulated matu"it ,e"iod o& t%e ba'i' o# t%e -e memo"a&dum o# t%e com,a& $ I&7e'to"' ca& i&7e't i& t%e 'c%eme at t%at time o# t%e i&itial ,ublic i''ue a&d t%e"ea#te" t%e ca& bu o" 'ell t%e u&it' o# t%e 'c%eme o& t%e 'toc- e;c%a&.e /%e"e t%e u&it' a"e li'ted$ Redem,tio& ca& ta-e ,lace o&l a#te" t%e ,e"iod o# t%e 'c%eme i' o7e"$ 6o/e7e") clo'e 0#u&d' a"e li'ted o& t%e 'toce;c%a&.e a&d i&7e'to"' ca& bu C'ell u&it' i& t%e 'eco&da" ma"-et (t%e"e i' &o load* Note: SEBI "e.ulatio& 'ti,ulate' t%at at lea't o&e o# t%e t/o e;it "oute' i' ,"o7ided to t%e i&7e'to"' i$e$ eit%e" "e,u"c%a'e #acilit o" t%"ou.% li'ti&. o& 'toc- e;c%a&.e$ T%e'e mutual #u&d' 'c%eme' di'clo'e NAH .e&e"all o& /ee-l ba'i'$

=9

Sc%emes acco#ding to in"estment ob/ecti"e:


A 'c%eme ca& al'o be cla''i#ied a' ."o/t% 'c%eme) i&come 'c%eme) o" bala&ced 'c%eme) co&'ide"i&. it' i&7e'tme&t ob8ecti7e'$ Suc% 'c%eme ma be o,e&-e&ded o" clo'e-e&ded 'c%eme' a' de'c"ibed ea"lie"$ Suc% 'c%eme' ma be cla''i#ied a' #ollo/':

-34-

Analysis Of Mutual Funds And Data Analysis

a9 !"o/t%CEGuit o"ie&ted 'c%eme:


T%e aim o# ."o/t% #u&d' i' to ,"o7ide ca,ital a,,"eciatio& o7e" t%e medium to lo&. te"m$ Suc% 'c%eme' &o"mall i&7e't a ma8o" ,a"t o# t%ei" co",u' i& eGuitie'$ Suc% #u&d' %a7e com,a"ati7el %i.% "i'-'$ T%e'e 'c%eme' ,"o7ide di##e"e&t o,tio& to t%e i&7e'to"' li-e di7ide&d o,tio& ca,ital a,,"eciatio& etc$ a&d t%e i&7e'to"' ma c%oo'e a& o,tio& de,e&di&. o& t%ei" ,"e#e"e&ce$ T%e i&7e'to" mu't i&dicate t%e o,tio& i& t%e a,,licatio& #o"m$ T%e mutual #u&d al'o allo/ t%e i&7e'to"' to c%a&.e t%e o,tio& at a late" date$ !"o/t% 'c%eme' a"e .ood #o" i&7e'to"' %a7i&. a lo&. te"m outloo- 'ee-i&. a,,"eciatio& o7e" a ,e"iod o# time$

b9 I&comeC Debt o"ie&ted 'c%eme:


T%e aim o# i&come #u&d i' to ,"o7ide "e.ula" a&d 'tead i&come to i&7e'to"'$ Suc% 'c%eme' .e&e"all i&7e't i& #i;ed i&come 'ecu"itie' 'uc% a' bo&d') co",o"ate debe&tu"e'$ Suc% #u&d a"e le'' "i'- com,a"ed to eGuit 'c%eme$ T%e NAH' o# 'uc% #u&d' a"e a##ected becau'e o# c%a&.e i& i&te"e't "ate' i& t%e cou&t" )i# t%e i&te"e't "ate' #all NAH o# 'uc% #u&d' a"e li-el to i&c"ea'e i& t%e '%o"t "u& a&d 7ice 7e"'a$ 6o/e7e" lo&. te"m i&7e'to"' ma &ot bot%e" about t%e'e #luctuatio&'$

c9 Bala&ced #u&d':
T%e aim o# bala&ced #u&d' i' to ,"o7ide bot% ."o/t% a&d "e.ula" i&come a' 'uc% 'c%eme' i&7e't bot% i& eGuitie' a&d #i;ed i&come' 'ecu"itie' i& t%e ,"o,o"tio& i&dicated i& t%ei" o##e" docume&t$ T%e'e a"e a,,"o,"iate #o" i&7e'to"' loo-i&. #o" mode"ate ."o/t%$ T%e .e&e"all i&7e't >1L-@1L i& eGuit a&d debt i&'t"ume&t$ T%e'e #u&d' a"e al'o a##ected becau'e o# #luctuatio& i& '%a"e ,"ice i& t%e 'toc- ma"-et$ 6o/e7e" NAH' o# 'uc% #u&d' a"e li-el to be le'' 7olatile com,a"ed to ,u"e eGuit #u&d'$

-3?-

Analysis Of Mutual Funds And Data Analysis

d9 Mo&e Ma"-et o" LiGuid Fu&d:


T%e'e #u&d' a"e al'o i&come #u&d' a&d t%ei" aim i' to ,"o7ide ea' liGuidit ) ,"e'e"7atio& o# ca,ital a&d mode"ate i&come$ T%e'e 'c%eme' i&7e't e;clu'i7el i& 'a#e" '%o"t te"m i&'t"ume&t 'uc% a' t"ea'u" bill) ce"ti#icate' o# de,o'it) comme"cial ,a,e" a&d i&te" ba&- call mo&e ) .o7e"&me&t 'ecu"itie' etc$ Retu"&' o& t%e'e 'c%eme' #luctuate muc% le'' com,a"ed to ot%e" #u&d'$ T%e'e #u&d' a"e a,,"o,"iate #o" co",o"ate a&d i&di7idual i&7e'to"' a' a mea& to ,a"- t%ei" 'u",lu' #u&d' #o" '%o"t ,e"iod$

e9 !ilt Fu&d:
T%e'e #u&d' i&7e't e;clu'i7el i& .o7e"&me&t 'ecu"itie'$ !o7e"&me&t 'ecu"itie' %a7e &o de#ault "i'-$ NAH' o# t%e'e 'c%eme' al'o #luctuate due to c%a&.e i& i&te"e't "ate' a&d ot%e" eco&omic #acto"' a' a"e t%e ca'e /it% i&come o" debt o"ie&ted 'c%eme$

f9 I&de; Fu&d':
I&de; #u&d' "e,licate t%e ,o"t#olio o# ,a"ticula" i&de; 'uc% a' t%e BSE 'e&'iti7e i&de; S<P NSE =1 i&de; (Ni#t * etc t%e'e 'c%eme' i&7e't i& t%e 'ecu"itie' i& t%e 'ame /ei.%ta.e com,"i'i&. o# a& i&de;$ NAH' o# 'uc% 'c%eme /ould "i'e o" #all i& acco"da&ce /it% t%e "i'e o" #all i& t%e i&de;$ T%e"e a"e al'o e;c%a&.e t"aded i&de; #u&d' lau&c%ed b t%e mutual #u&d' /%ic% a"e t"aded o& t%e 'toce;c%a&.e$

g9 Secto" ',eci#ic #u&d'C'c%eme':


T%e'e a"e t%e #u&d'C'c%eme') /%ic% i&7e't i& t%e 'ecu"itie' o# o&l t%o'e 'ecto"' o" i&du't"ie' a' ',eci#ied i& t%e o##e" docume&t' e$.$ 'o#t/a"e) FM+!) etc$ /%ile t%e'e #u&d' ma .i7e %i.%e" "etu"&' ) t%e a"e mo"e "i'- com,a"ed to di7e"'i#ied #u&d'$ T%e ma al'o 'ee- ad7i'e o# a& e;,e"t$

-21-

Analysis Of Mutual Funds And Data Analysis

%9 Ta; 'a7i&. 'c%eme':


T%e'e 'c%eme' o##e"' ta; "ebate' to t%e i&7e'to"' u&de" ',eci#ic ,"o7i'io&' o# t%e i&come ta; act) 3?@3 a' t%e .o7e"&me&t o##e"' ta; i&ce&ti7e' o# t%e i&7e'tme&t i& ',eci#ied a7e&ue') e$.$ELSS$ T%e'e 'c%eme' a"e ."o/t% o"ie&ted a&d i&7e't ,"e domi&a&tl i& eGuitie'$ T%ei" ."o/t% o,,o"tu&itie' a&d "i'-' a''ociated a"e li-e a& eGuit o"ie&ted 'c%eme'

69

+oad o# no1load fund:


A load #u&d i' o&e t%at c%a".e' a ,e"ce&ta.e o# NAH #o" e&t" o" e;it$ T%at i') eac% time o&e bu ' o" 'ell' u&it' i& t%e #u&d) a c%a".e /ill be ,a able$ T%i' c%a".e i' u'ed b t%e mutual #u&d #o" ma"-eti&. a&d di't"ibutio& e;,e&'e'$ Fo" e;: 'u,,o'e t%e NAH ,e" u&it i' "' 31$ I# t%e e&t" a' /ell a' e;it load c%a".ed i' 3L) t%e& t%e i&7e'to"' /%o bu /ould be "eGui"ed to ,a R' 31$31 a&d t%o'e /%o o##e" t%ei" u&it' #o" "e,u"c%a'e to t%e mutual #u&d /ill .et o&l R' ?$?1 ,e" u&it$ A &o load #u&d i' o&e t%at doe' &ot c%a".e #o" e&t" o" e;it$ It mea&' t%e i&7e'to"' ca& e&te" t%e #u&dC'c%eme' at NAH a&d &o additio&al c%a".e' a"e ,a able o& ,u"c%a'e o" 'ale o# u&it'$

T%e table belo/ me&tio& t%e t%e #u&d' acco"di&. to t%ei" &atu"e o# "i'-': Nature of Risks Lo/ "i'-' Mode"ate Ri'-' ate!ories of Funds Mo&e ma"-et #u&d' !-Sec #u&d'$ I&come #u&d' S%o"t te"m ,la&' Bala&ced #u&d' 6i.% Ri'I&de; #u&d' !"o/t% #u&d' Secto"' #u&d' -23-

Analysis Of Mutual Funds And Data Analysis

0%y Mutual Funds*


A% mutual #u&dB T%e mo't im,o"ta&t Gue'tio&$ A%at t%e %ec- mutual #u&d i'B A% &ot di"ectl i&7e't i& eGuitie'$ T%e be&e#it' o# i&7e'ti&. i& mutual #u&d' ca& 'umma"i:ed i& t%e #ollo/i&. ,oi&t':

29

Affo#dability:
T%e mi&imum i&itial i&7e'tme&t #o" a mutual #u&d i' #ai"l lo/ #o" mo't #u&d' (a' lo/ a' "' =11 #o" 'ome 'c%eme'*$ A mutual #u&d i&7e't i& a ,o"t#olio o# a''et i$e$ bo&d') '%a"e' etc$ de,e&di&. u,o& t%e i&7e'tme&t ob8ecti7e o# t%e 'c%eme$ A& i&7e'to"' ca& bu i& to a ,o"t#olio o# eGuitie') /%ic% /ould ot%e"/i'e be e;t"emel e;,e&'i7e$

<9

Di"e#sification:
Di7e"'i#icatio& i' o&e o# t%e be't /a ' to "educe "i'-' (to u&de"'ta&d /% ) "ead t%e &eed to di7e"'i# *$ Mutual #u&d' o##e"' i&7e'to"' a& o,,o"tu&it to di7e"'i# ac"o'' a''et de,e&di&. o& t%ei" i&7e'tme&t &eed'$ Fo" e;: du"i&. o&e ,e"iod o# time eGuitie' mi.%t u&de",e"#o"m' but bo&d' a&d mo&e ma"-et i&'t"ume&t' mi.%t do /ell e&ou.% to o##'et t%e e##ect o# a 'lum, i& t%e eGuit ma"-et'$

=9

Fle!ibility and "a#iety:


You ca& ,ic- #"om co&'e"7ati7e) blue- c%i, 'toc- #u&d') 'ecto"al #u&d') #u&d' t%at aim to ,"o7ide i&come /it% mode't ."o/t% o" t%o'e t%at ta-e bi. "i'-' i& t%e 'ea"c% #o" "etu"&'$ You ca& e7e& bu bala&ced #u&d') o" t%o'e t%at combi&e 'toc-' a&d bo&d' i& t%e 'ame #u&d'$ Fo"e;: I&7e'to"' ca& i&7e't %i' mo&e i& a ."o/t% #u&d (eGuit 'c%eme* a&d i&come #u&d (debt 'c%eme* de,e&di&. o& %i' "i'-' a,,etite a&d t%u' c"eate a bala&ced ,o"t#olio ea'il o" 'im,l 8u't bu a bala&ced 'c%eme$

-22-

Analysis Of Mutual Funds And Data Analysis

69

P#ofessional money management:


Fu&d ma&a.e"' a"e "e',o&'ible #o" im,leme&ti&. a co&'i'te&t i&7e'tme&t 't"ate. t%at "e#lect' t%e .oal' o# t%e #u&d'$ Fu&d ma&a.e"' mo&ito" ma"-et a&d eco&omic t"e&d' a&d a&al :e 'ecu"itie' i& o"de" to ma-e i&#o"med i&7e'tme&t deci'io&'$

?9

$egulation:
SEBI) t%e mutual #u&d "e.ulato" %a' clea"l de#i&ed "ule') /%ic% .o7e"& mutual #u&d'$ T%e'e "ule' "elate to t%e i&#o"matio& ) admi&i't"atio& a&d )ma&a.eme&t o# mutual #u&d' a&d al'o ,"e'c"ibe di'clo'u"e a&d accou&ti&. "eGui"eme&t$ Suc% a %i.% le7el o# "e.ulatio& 'ee-' to ,"otect t%e i&te"e't o# i&7e'to"'$

:#ound $ules of &n"esting


T%e /o"ld o# i&7e'tme&t too %a' 'e7e"al ."ou&d "ule' mea&t #o" i&7e'to"' /%o a"e i&7oice i& t%ei" o/& "i.%t a&d /i'% to e&te" t%e m "iad /o"ld o# i&7e'tme&t$ T%e'e come i& %a&d #o" t%e"e i' e7e" ,o''ibilit o# lo'i&. /%at o&e %a' i# due ca"e i' &ot ta-e&$

-25-

Analysis Of Mutual Funds And Data Analysis

29

Assess you#self:
Sel# 0 a''e''me&t o# o&e' &eed'K e;,ectatio& a&d "i'- ,"o#ile i' o# ,"ime im,o"ta&ce #aili&. /%ic%K o&e /ill ma-e mo"e mi'ta-e i& ,utti&. mo&e i& "i.%t ,lace' t%a& ot%e"/i'e$ O&e '%ould ide&ti# t%e de."ee o# "i'-' bea"i&. ca,acit o&e %a' a&d al'o clea"l 'tate t%e e;,ectatio& #"om t%e i&7e'tme&t$ I""atio&al e;,ectatio& /ill o&l b"i&. ,ai&$

<9

DonAt #us% in 'icking funds. t%ink fi#st:


O&e #i"'t %a' to decide /%at %e /a&t' t%e mo&e #o" a&d it i' t%i' i&7e'tme&t .oal t%at '%ould be t%e .uidi&. li.%t #o" all i&7e'tme&t do&e$ O&e '%ould ta-e a loo- at t%e ,o"t#olio o# t%e #u&d' #o" t%e ,u",o'e$ Mutual #u&d' i&7e't /it% a ce"tai& ideolo. 'uc% a' t%e MHalue P"i&ci,leN o" M!"o/t% P%ilo'o,% N$ Bot% %a7e t%ei" '%a"e o# c"itic' but bot% ,%ilo'o,% /o"- #o" i&7e'to"' o# di##e"e&t -i&d'$

=9

&n"estB DonAt s'eculate:


A commo& i&7e'to" i' limited i& t%e de."ee o# "i'- t%at %e i' /illi&. to ta-e$ O&e '%ould ab'tai& #"om ',eculati&. /%ic% i& ot%e" /o"d' /ould mea& .etti&. out o# o&e #u&d a&d i&7e'ti&. i& a&ot%e" /it% t%e i&te&tio& o# ma-i&. Guic- mo&e $ O&e /ould do /ell to "emembe" t%at &obod ca& ,e"#ectl time t%e ma"-et 'o 'ta i&. i&7e'ted i' t%e be't o,tio& u&le'' t%e"e i' com,elli&. "ea'o& to e;it$

69

)e #egula#:
I&7e'ti&. '%ould be a %abit a&d &ot a& e;e"ci'e u&de"ta-e& at o&e /i'%e') i# o&e %a' to "eall be&e#it #"om t%em$ 6e /ould 'ta&d a bette" c%a&ce o# .e&e"ati&. mo"e "etu"&' t%a& t%e ma"-et #o" t%e e&ti"e du"atio&$

-2>-

Analysis Of Mutual Funds And Data Analysis

?9

Find t%e #ig%t funds:


Fi&di&. #u&d' t%at do &ot c%a".e ma& #ee' o# im,o"ta&ce) a' t%e #ee c%a".ed ultimatel .oe' #"om t%e ,oc-et o# i&7e'to"'$ Fi&di&. t%e "i.%t #u&d' i' im,o"ta&ce a&d o&e '%ould al'o u'e t%e'e #u&d' #o" ta; e##icie&c $ I&7e'to"' o# eGuit '%ould -ee, i& mi&d t%at all di7ide&d' a"e cu""e&tl ta; 0#"ee i& I&dia a&d 'o t%e ta; liabilitie' ca& be "educed i# t%e di7ide&d ,a out o,tio& i' u'ed$ I&7e'to"' o# debt /ill be c%a".ed a ta; o& di7ide&d di't"ibutio& a&d 'o ca& ea'il a7oid t%e ,a me&t o,tio&$

59

Cee' t#ack of in"estment:


Fi&di&. t%e "i.%t #u&d' i' im,o"ta&t but e7e& mo"e im,o"ta&t i' to -ee, t"ac- b t%e /a t%e a"e ,e"#o"mi&. i& t%e ma"-et$ I# t%e ma"-et i' be.i&&i&. to e&te" a bea"i'% ,%a'e) t%a& i&7e'to"' o# eGuit too /ill be&e#it b '/itc%i&. to debt #u&d' a' t%e lo''e' ca& be mi&imi:ed$

0%o can in"est in Mutual Fund*


Ae &eed to a/a"e o# /%o ca& bu mutual #u&d' u&it' o" '%a"e'$ Mutual #u&d' i& I&dia a"e o,e& to i&7e'tme&t b

29 $esidents including:
a* Re'ide&t I&dia& I&di7idual b* I&dia& +om,a&ie' c* I&dia& t"u'tCc%a"itable t"u't' d* Ba&-' e* No& 0Ba&-i&. Fi&a&ce com,a&ie' #* I&'u"a&ce com,a&ie' .* P"o7ide&t #u&d'

-2=-

Analysis Of Mutual Funds And Data Analysis

<9 Non $esidents &ncluding:


a* No& "e'ide&t' I&dia&' b* O7e"'ea' co",o"ate bodie'

=9 Fo#eign entities:
a* Fo"ei.& I&'titutio&al I&7e'to"' "e.i'te"ed /it% SEBI$ Fo"ei.& citi:e&'Ce&titie' a"e %o/e7e" &o/ allo/ed to i&7e't i& I&dia$

(ow To Make Money &n Mutual Funds*


T%e"e a"e t%"ee /a ' i& /%ic% o&e ca& ma-e mo&e i& mutual #u&d': 3* O&e ca& ea"& a di7ide&d #"om t%e Mutual Fu&d$ Mo't debt #u&d decla"e di7ide&d o& t%e ba'i' o# t%e 'c%eme o# /%ic% t%e com,a& %a' to be decided$ A%e& a di7ide&d i' decla"ed) t%e NAH o# t%e u&it' /ill #all) 'i&ce di7ide&d i' ,aid out o# t%e a,,"eciatio& i& t%e 7alue o# t%e u&it$ 2* O&e ca& ma-e a ,"o#it b 'elli&. t%e mutual #u&d u&it' at a ,"ice %i.%e" t%a& t%at at /%ic% ou bou.%t t%em$ T%i' i' ca,ital .ai& ( i# ou 'ell t%e u&it' at a lo/e" ,"ice) ou ma-e a ca,ital lo''*$ 5* Fi&all ) t%e 7alue o# t%e u&it' ou %old ca& a,,"eciate$ Di7ide&d' a&d ca,ital .ai&' a"e t"eated di##e"e&tl $

Ta!ing in Mutual Funds


29 0%at is t%e ta! status of a mutual fund*
A mutual #u&d i' e;em,t #"om ,a i&. ta;e' o& it' i&come) b 7i"tue o# e;em,tio& ."a&ted u&de" t%e I&come Ta; Act$ T%e i&come' ea"&ed b t%e #u&d a"e o& it' i&7e'tme&t') a&d t%e'e i&come' a"e ,a''ed o& to t%e

-2@-

Analysis Of Mutual Funds And Data Analysis

i&7e'to"'$ T%e"e#o"e t%e mutual #u&d i' me"el a M,a''-t%"ou.%N e&tit ) /%ic% doe' &ot .e&e"ate a& i&come o& it' o/&$ It i' t%e"e#o"e e;em,t #"om ,a i&. ta;e' o& it' i&come 0 di7ide&d') i&te"e't a&d ca,ital .ai&' bot% lo&. te"m a&d '%o"t te"m$

<9

0%at is t%e natu#e of income ea#ned by an in"esto# in a mutual fund*


A& i&7e'to" ca& ea"& %i' i&come #"om mutual #u&d i&7e'tme&t') i& t/o di##e"e&t #o"m': Di7ide&d' a&d ca,ital .ai&'$ Di7ide&d' a.ai& a"e o# t/o t ,e' 0 "e.ula" ,e"iodic di7ide&d) a' i&dicated i& t%e 'c%eme (dail ) mo&t%l ) Gua"te"l a&d t%e li-e* o" ad-%oc di7ide&d (ca& be a&&ou&ced a& time* a' a,,"o7ed b t%e t"u'tee'$ +a,ital .ai& (o" lo''* acc"ue' to t%e i&7e'to") /%e& t%e i&7e'to" ma-e' t%e deci'io& to "edeem t%e u&it'$ I# %e "edeem' t%e u&it' at a ,"ice t%at i' %i.%e" t%a& %i' co't o# ,u"c%a'e) t%e"e i' a ca,ital .ai&$ I# t%e "edem,tio& ,"ice i' lo/e" t%a& %i' co't) t%e"e i' a ca,ital lo''$

=9

0%at a#e t%e ta! im'lications of t%e o'tions c%osen by t%e in"esto#*
A& i&7e'to" ca& c%oo'e t%e #o"m i& /%ic% %e li-e' to ea"& %i' i&come #"om t%e mutual #u&d$ I# a& i&7e'to" c%oo'e' t%e ."o/t% o,tio&) %e doe' &ot ea"& a di7ide&d i&come$ To "eali:e %i' "etu"&') %e %a' to "edeem t%e u&it') 'uc% "edem,tio& i' 'ub8ect to t%e a,,licable ca,ital .ai&' ta;$ I# %e c%oo'e' di7ide&d o,tio&) %e ea"&' di7ide&d i&come t%at i' 'ub8ect to ta; a' 'uc%$ I# %e c%oo'e' a di7ide&d "e-i&7e'tme&t o,tio&) %e i' deemed to %a7e "ecei7ed t%e di7ide&d a&d 'ub'eGue&tl t%i' ca'e$ "e-i&7e'ted t%e 'ame) t%e"e#o"e t%e 'ame ta; ,"o7i'io&' t%at a,,l to di7ide&d' /ill a,,l i&

-22-

Analysis Of Mutual Funds And Data Analysis

69

0%at is s%o#t te#m and long1te#m ca'ital gains f#om mutual fund in"estments* (ow a#e t%ey ta!ed*
I# a& i&7e'to" "edeem' %i' i&7e'tme&t' i& a mutual #u&d a#te" a ,e"iod o# 32 mo&t%' #"om t%e date o# bu i&. t%e u&it') %e i' 'aid to %a7e %eld t%e u&it' #o" t%e lo&. te"m$ T%e ca,ital .ai&' a"e ta;ed a' lo&.-te"m ca,ital .ai&' (LT+!*$ A& "edem,tio& o# u&it' be#o"e a ,e"iod o# 32 mo&t%' i' o7e" i' t"eated '%o"t te"m ca,ital .ai&' (ST+!*$ T%e "ate' o# ta;atio& #o" t%e t/o a"e di##e"e&t$ Lo&.-te"m ca,ital .ai&' a"e al'o 'ub8ect to ea") due to i&#latio&) t%e 7alue o# %i' i&de;atio&$ T%i' mea&') a& i&7e'to" ca& claim t%at 'i&ce %e %eld t%e i&7e'tme&t #o" mo"e t%a& a i&7e'tme&t' %a' .o&e u,$ T%e +BDT t%e"e#o"e ,ubli'%e' a +o't o# T%i' ,"oce'' i' called

I&#latio& I&de;) a&d allo/' t%e i&7e'to" to ad8u't %i' co't to t%e i&#latio& i&de;) be#o"e com,uti&. t%e ca,ital .ai&'$ i&de;atio& (I&de;ed co't O +o't o# acGui'itio& ; I&de; i& t%e ea" o# 'aleCI&de; i& t%e ea" o# ,u"c%a'e*$ T%e ta; "ate' a"e di##e"e&t de,e&di&. o& /%et%e" t%e ca,ital .ai&' a"e i&de;ed o" &ot$

Section <: Ta! P#o"isions as amended by Finance Act 3No.<9 <@@6 29 0%at is t%e ta! status of mutual fund di"idends*
Di7ide&d' #"om mutual #u&d' a"e e;em,t #"om ta;$ 6o/e7e") i& t%e ca'e o# all ot%e" #u&d') e;ce,t eGuit a&d eGuit o"ie&ted #u&d') t%e mutual #u&d' /ill %a7e to deduct a di7ide&d di't"ibutio& ta; at 32$=L J a,,licable 'u"c%a".e (2$=L* a&d ce'' (2L*) be#o"e ,a i&. out t%e di7ide&d to t%e i&7e'to"'$ A& eGuit -o"ie&ted #u&d i' o&e t%at i&7e't' at lea't =1L o# it' &et a''et' i& eGuit '%a"e' o# dome'tic com,a&ie'$ T%e mo&t%l o,e&i&. a&d clo'i&. %oldi&.' i& eGuit '%ould be com,uted) a&d t%e a&&ual a7e"a.e o# t%i' &umbe" '%ould be at lea't =1L) #o" t%e #u&d to be cla''i#ied a' a& eGuit -o"ie&ted #u&d) a&d be e;em,t #"om t%e ,"o7i'io&' o# t%e di7ide&d di't"ibutio& ta;$ T%e e;em,tio& #o" eGuit -o"ie&ted -24-

Analysis Of Mutual Funds And Data Analysis

#u&d' %ad e;,i"ed o& Ma"c% 53) 211>$ T%e Fi&a&ce Act (No 2* 211> %a' e;te&ded t%i' be&e#it u&co&ditio&all #o" eGuit o"ie&ted #u&d'$ It %a' al'o made a di'ti&ctio& bet/ee& i&di7idual' a&d 6UF' a&d ot%e"'$ bee& i&c"ea'ed to 21L (,lu' 'u"c%a".e a&d ce''*$ T%e di7ide&d di't"ibutio& ta; a,,licable to all a''e''e') ot%e" t%a& i&di7idual' a&d 6UF') %a'

<9

0%at is t%e ta! status of ca'ital gains*


Lo&. te"m ca,ital .ai&' #"om eGuit -o"ie&ted #u&d') i' #ull e;em,t #"om ta;$ Lo&. te"m ca,ital .ai&' #"om all ot%e" #u&d') i' 'ub8ect to ta;atio&$ T%e a,,licable "ate' a"e 31L (/it%out i&de;atio&* o" 21L (/it% i&de;atio&*$ Su"c%a".e a&d ce'' a,,l $ NRI' a"e &ot eli.ible #o" i&de;atio& be&e#it') 'i&ce t%e ca& a7ail cu""e&c 7alue ad8u'tme&t #o" com,uti&. ca,ital .ai&'$ S%o"t te"m ca,ital .ai&' #"om eGuit -o"ie&ted #u&d') i' ta;able at 31L (,lu' S+ a&d ce''*$ I& t%e ca'e' o# all ot%e" #u&d') t%e '%o"t-te"m ca,ital .ai&' /ill be ta;ed a' &o"mal i&come) at t%e ma".i&al "ate' o# ta;atio& a,,licable to t%e i&7e'to"$ I&come ta; "ate' a,,l i& 'lab') ',eci#ied #o" eac% le7el o# i&come$ T%e ma".i&al "ate i' t%e %i.%e't "ate a& a''e''e' ,a ') .i7e& %i' le7el o# ta;able i&come$

=9

0%at is t%e secu#ities t#ansaction ta! 3STT9 a''licable to t%e mutual fund in"esto#*
A 1$3=L STT to be ,aid b t%e 'elle") o& all t"a&'actio&' i& eGuit o"ie&ted #u&d') /%e"e t%e u&it' a"e 'old to a mutual #u&d$ T%i' mea&') &o STT a,,lie' o& ,u"c%a'e o# u&it' #"om t%e #u&d$ O&l o& "edem,tio&) i& a& eGuit -o"ie&ted #u&d) t%e i&7e'to" i' "eGui"ed to ,a 1$3=L o# t%e t"a&'actio& 7alue a' STT$ I& t%e ca'e o# all ot%e" #u&d') t%at a"e &ot eGuit -o"ie&ted) t%e"e i' &o STT #o" t%e i&7e'to"E' t"a&'actio&' /it% t%e mutual #u&d$ -2?-

Analysis Of Mutual Funds And Data Analysis

69

0%en do t%e new #ates of ca'ital gains ta! become a''licable*


T%e ca,ital .ai&' ta; a&d t%e 'ecu"itie' t"a&'actio& ta;) .o to.et%e"$ T%e &e/ ca,ital .ai&' ta; "ate' /ill become a,,licable #"om t%e date t%e +BDT &oti#ie' t%e STT$

?9

Can t%e STT be #educed f#om "alue of units befo#e com'uting ca'ital gains*
Sectio& >4 %a' bee& ame&ded to ,"o7ide t%at &o deductio& '%all be allo/ed i& "e',ect o# STT ,aid) #o" t%e ,u",o'e o# com,uti&. ca,ital .ai&'

Section =: Set1off. Di"idend st#i''ing and Debt funds


29 0%at is set1off*
A& i&7e'to") /%o ma-e' a ca,ital lo'' #"om %i' i&7e'tme&t') i' allo/ed to ca"" #o"/a"d t%i' lo'' #o" 4 ea"' #"om t%e date o# t%e lo''$ 6e ca& deduct t%e lo'' t%at i' ca""ied #o"/a"d) #"om t%e ca,ital .ai&' t%at %e ma-e' i& t%e 'ub'eGue&t ea"') 'o t%at %i' ca,ital .ai&' ta; i& t%e 'ub'eGue&t ea"' i' "educed$ T%i' act o# "educi&. t%e ca,ital .ai&' b deducti&. t%e ca,ital lo'' i' called 'et o##$ T%e "ule' #o" 'et o## a"e a' u&de": a$ Lo'' a"i'i&. #"om a '%o"t-te"m ca,ital a''et ca& be 'et o## a.ai&'t t%e .ai&' a"i'i&. #"om t%e 'ale o# a lo&. o" '%o"t-te"m ca,ital a''et$ b$ Lo'' a"i'i&. #"om a lo&.-te"m ca,ital a''et ca& be 'et o## o&l a.ai&'t t%e .ai&' #"om t%e 'ale o# lo&.-te"m a''et'$ c$ A& lo'' u&de" t%e %ead ca,ital .ai&') eit%e" '%o"t o" lo&. te"m) ca& be 'et o## o&l a.ai&'t i&come #"om t%e 'ame %ead (ca,ital .ai&'*$ S%o"t

-51-

Analysis Of Mutual Funds And Data Analysis

o" lo&. te"m ca,ital lo''e' ca&&ot be 'et-o## a.ai&'t a& ot%e" 'ou"ce o# i&come$ d$ I# t%e"e i' a lo'' u&de" a& ot%e" %ead o# i&come) t%at ca& be 'et o## a.ai&'t '%o"t o" lo&. te"m ca,ital .ai&'$ U&de" t%e cu""e&t ,"o7i'io&' a& i&7e'to" /%o %a' ca""ied #o"/a"d a lo&.te"m ca,ital lo'') ca& 'et it o## o&l a.ai&'t lo&. te"m ca,ital .ai&' #"om debt #u&d' a&d ot%e" #u&d' t%at %a7e le'' t%a& =1L i& eGuit $ T%i' i' becau'e lo&. te"m ca,ital .ai&' #"om ta; #o" eGuit -o"ie&ted #u&d' i' e;em,t #"om ta;$

<9

0%at a#e t%e new '#o"isions fo# set1off of ca'ital loss on e!1 di"idend basis*
Di7ide&d 't"i,,i&. i' t%e ,"actice o# bu i&. i&to a mutual #u&d ,"io" to decla"atio& o# di7ide&d) a&d 'elli&. t%e u&it' a#te" di7ide&d' at t%e e;di7ide&d ,"ice$ T%e i&7e'to" t%e& ea"&' ta;-#"ee di7ide&d' a&d al'o %a' a ca,ital lo'' t%at ca& be u'ed #o" ,u",o'e' o# 'et o##$ Sectio& ?>(2* a' ame&ded b t%e Fi&a&ce Act (No2* 211>) %a' ,lu..ed t%i' loo,%ole$ I# a& i&7e'to" acGui"e' a u&it a& time i& t%e ,e"iod o# 5 mo&t%' be#o"e t%e e;di7ide&d date) a&d 'ell' it /it%i& a ,e"iod o# ? mo&t%' #"om t%e e;di7ide&d date) t%e lo'' i& t%e 7alue o# i&7e'tme&t') to t%e e;te&t o# t%e di7ide&d decla"ed) /ill be i.&o"ed #o" t%e ,u",o'e' o# com,uti&. i&come c%a".eable to ta;$ A%at t%i' mea&' i' t%at 'uc% lo'' i& 7alue /ill &ot be ca,ital lo'') a7ailable #o" 'et o## a.ai&'t ca,ital .ai&'$A &e/ 'ectio& ?>(4* %a' bee& i&t"oduced /%ic% ma-e' t%e ,"o7i'io&' o# ?>(2* a,,l e7e& i# t%e di7ide&d di't"ibutio& i' i& t%e #o"m o# bo&u' u&it'$ T%e 'ame "ule' o# 5 mo&t%' be#o"e a&d ? mo&t%' a#te" e;-di7ide&d date' a,,l ) a&d t%e lo'' i& t%e 7alue o# u&it' /ill be deemed to be t%e ,u"c%a'e ,"ice o# t%e bo&u' u&it'$

-53-

Analysis Of Mutual Funds And Data Analysis

=9

0%y a#e debt funds 3and all funds t%at a#e not eDuity o#iented9 only sub/ect to di"idend dist#ibution ta!*
I& ca'e o# a #u&d t%at i' &ot eGuit -o"ie&ted) t%e i&come o# t%e #u&d i' mo'tl ea"&ed a' i&te"e't i&come) a&d i' &o"mall 'ub8ect to ta;$ But /%e& t%e mutual #u&d di't"ibute' t%e 'ame a' di7ide&d) it i' e;em,t #"om ta;$ T%e"e#o"e all #u&d' ot%e" t%a& eGuit -o"ie&ted #u&d' a"e 'ub8ect to di7ide&d di't"ibutio& ta;$ I& a& eGuit -o"ie&ted #u&d) t%e di7ide&d' t%at a"e ea"&ed a"e e;em,t #"om ta; a& /a ) a&d t%e com,a& t%at ,a ' t%e di7ide&d %a' ,aid t%e di7ide&d di't"ibutio& ta;) be#o"e di't"ibuti&. t%e di7ide&d to t%e mutual #u&d

-52-

Analysis Of Mutual Funds And Data Analysis

Section 6 E A''licable ta! #ates and effecti"e #ates


29 $esident &ndi"iduals and (;Fs

Ma;imum a,,licable ta; "ate - 51L A,,licable 'u"c%a".e #o" ca,ital .ai&' -21L (,lu' 'u"c%a".e* A,,licable 'u"c%a".e #o" Di7ide&d Di't"ibutio& Ta; 0 2$=L A,,licable ce'' 0 2L Equity Funds Debt Funds 31L J 31L S+J 51L J 31L S+J 2L +e'' 2L +e'' Te"m Effective - 11.22% +a,ital NIL Effective - 33.66% 31L J 31L S+J2L +e'' (/it%out i&de;atio&* Effective - 11.22% o 21LJ31LS+J2L +e'' (/it% i&de;atio&* Di7ide&d' NIL Effective ! 22.""% Di7ide&d' a"e ta;-#"ee$ Sub8ect to DDT P 32$=L J 2$=LS+ J 2L +e''$ Effective - 13.#$%

S%o"t !ai&' Lo&. !ai&'

Te"m

+a,ital

-55-

Analysis Of Mutual Funds And Data Analysis

<9

Pa#tne#s%i' Fi#ms and &ndian Com'anies

Ma;imum a,,licable ta; "ate - 5=L A,,licable 'u"c%a".e #o" ca,ital .ai&' 0 2$=L A,,licable 'u"c%a".e #o" Di7ide&d Di't"ibutio& Ta; 0 2$=L A,,licable +e'' 0 2L Equity Funds Debt Funds +a,ital 31LJ2$=L S+J 5=L J 2$=L S+J 2L +e'' 2L +e'' Te"m Effective - 36.%&2%% Effective ! 1#."6% +a,ital NIL 31L J 2$=L S+J2L +e'' (/it%out i&de;atio&* Effective ! 1#."6% o 21LJ2$=LS+J2L +e'' (/it% i&de;atio&* Di7ide&d' NIL Effective ! 2#.&1% Di7ide&d' a"e ta; 2$=LS+ J 2L +e''$ Effective ! 2#.&1% #"ee$

S%o"t !ai&' Lo&. !ai&'

Te"m

Sub8ect to DDT P 21L J

-5>-

Analysis Of Mutual Funds And Data Analysis

=9

Non1$esident &ndians

A,,licable Rate #o" ST+! - 51L (Deducted a' TDS* A,,licable Rate #o" LT+! - 21L (Deducted a' TDS* A,,licable Su"c%a".e #o" +a,ital !ai&' 0 31L A,,licable Su"c%a".e #o" Di7ide&d Di't"ibutio& Ta; 0 2$=L A,,licable +e'' 0 2L NRI' ca& o,t #o" com,utatio& o# LT+! u&de" Sectio& 332) /%ic% e&able' ad8u'ti&. #o" de,"eciatio& i& 7alue o# t%e "u,ee be#o"e com,uti&. LT+!$ Equity Funds S%o"t Debt Funds 'D(

Te"m 31L J 31L S+J 51L J 31L S+J 33$22L - EGuit 2L +e'' Effective 2L +e'' - Effective 33.66% 31L J S+J2L +e'' Effective TDS o" #o" debt 31L EGuit 0 Nil Debt 0 33$22L 55$@@L - Debt

+a,ital !ai&'

Lo&.

11.22% Te"m NIL

+a,ital !ai&'

Di7ide&d'

NIL

11.22% Di7ide&d' a"e ta; No #"ee$ Sub8ect to eGuit DDT P 32$=L J #u&d$ 2$=L S+ J 2L +e''$ Effective 13.#$% -

69

Fo#eign Com'anies
-5=-

Analysis Of Mutual Funds And Data Analysis

Ma;imum A,,licable Ta; Rate - >1L A,,licable Su"c%a".e #o" +a,ital !ai&' 0 2$=L A,,licable Su"c%a".e #o" Di7ide&d Di't"ibutio& Ta; 0 2$=L A,,licable +e'' 0 2L Equity Funds Debt Funds +a,ital 31LJ2$=L S+J >1L J 2$=L S+J 2L +e'' 2L +e'' Te"m Effective ! "1.)2% Effective ! 1#."6% +a,ital NIL 31L J 2$=L S+J2L +e'' (/it%out i&de;atio&* Effective ! 1#."6% o 21LJ2$=LS+J2L +e'' (/it% i&de;atio&* Di7ide&d' NIL Effective ! 2#.&1% Di7ide&d' a"e ta; 2$=LS+ J 2L +e''$ Effective ! 2#.&1% #"ee$

S%o"t !ai&' Lo&. !ai&'

Te"m

Sub8ect to DDT P 21L J

-5@-

Analysis Of Mutual Funds And Data Analysis

P%a'e - 2
Mutual Funds %ouses in &ndia
Till 53't Ma"c% 2114 t%e"e a"e 5= mutual #u&d %ou'e' i& I&dia$ T%e &ame' o# t%e'e mutual #u&d %ou'e' /it% t%ei" "e',ecti7e &umbe" o# 'c%eme' i' to be /"itte& u&de" t%i'$ Out o# t%e 5= com,a& mutual #u&d to ,e"#o"m /ell i& t%e ma"-et it &eed' a 'u##icie&t co",u' 'i:e$ So t%at it ca& i&7e't i& 7a"iou' o,tio& a7ailable i& t%e ma"-et$ A&d #o" i&7e'tme&t it &eed' co",u'$ It' &ot t%at a& #u&d %ou'e /it% la".e co",u' 'i:e 0t%e "i'-' "educe' a bit$ T%e'e a"e t%e Mutual Fu&d' +om,a& 53'tma"c%2114$ Se"ial &o$ 3 2 5 > = 5? @ 2 4 ? 31 33 +%ola Ma&dlum Mutual 345 Fu&d F"a&-li& Tem,leto& 23 ==1 =14 2@> =5= Mutual Mutual Fu&d Fu&d 6DF+ Relia&ce Mutual Fu&d SBI Mutual Fu&d UTI Mutual Fu&d Mutual Fu&d Name ABN AMRO Fu&d AI! I&dia Mutual Fu&d Be&c%ma"- Ba&- Fu&d Bi"la Mutual Fu&d BOB Mutual Fu&d No$ o# Sc%eme' =5 3@ >>= Mutual 54= < t%ei" &umbe" o# 'c%eme' a' o&

-52-

Analysis Of Mutual Funds And Data Analysis

$isk Analysis
Mo't ,eo,le /ould a."ee t%at %i.% "etu"&' a"e .ood a&d "i'- i' bad$ T%e ,"oblem i' t%at "i'- < "etu"&' u'uall .o %a&d i& %a&d$ To ea"& abo7e a7e"a.e .ai&' o7e" t%e ea"' /it% ou" 'toc- mutual #u&d ) /e mu't be /illi&. to tole"ate %i.%e" le7el' o# 7olatilit $ Facto"' e##ecti&. 7a"iabilit o# t%e i&7e'tme&t ,e"#o"ma&ce: 3$ T%e -i&d o# 'toc-' i& t%e ,o"t#olio$ 2$ T%e de."ee to /%ic% a #u&d di7e"'i#ie'$ 5$ T%e de."ee to /%ic% a ma&a.e" u'e' le7e"a.e o" bo""o/i&.$ >$ T%e e;te&t) i# a& ) to /%ic% t%e ma&a.e" t"ie' to time t%e ma"-et o" %ed.e$

-54-

Analysis Of Mutual Funds And Data Analysis

Diffe#ent kinds of #isks


29 Com'any #isks:
T%e mo't ba'ic < ,ote&tial de7a'tati&. da&.e") /%ic% mo't mutual #u&d i&7e'to"' %a,,il a7oid) i' com,a& ',eci#ic o" "a&dom "i'-'$ Academic "e'ea"c% i&dicate' t%at b %oldi&. at lea't 32 to 21 di##e"e&t 'toc-' i& t%e ,o"t#olio$ Ae ca& elimi&ate mo't com,a& ',eci#ic "i'-'$

<9

-olatility:
A' t%e i&'t"ume&t t%at t%e #u&d' i&7e't i& a"e ma"-et to ma"-et) t%ei" NAH' a"e automaticall 'ub8ect to t%e ,"ice mo7eme&t o# t%e'e 'ecu"itie'$ T%e 7olatilit ) %o/e7e") 7a"ie' #"om 'c%eme to 'c%eme debt #u&d' a"e le'' 7olatile t%e& eGuit #u&d' becaue t%e #o"me" i&7e't mo"e i& #i;ed i&come) &o& .o7e"&me&t 'ecu"itie') /%e"e t%e 7olatilit i' lo/e"$

=9

St#ategy #isks:
T%i' "e#e"' to t%e bala&ced #u&d di7idi&. it' co",u' bet/ee& eGuit < debt'o t%e i&7e't bet/ee& >1 a&d @1 ,e"ce&t i& eGuit i&'t"ume&t a&d t%e bala&ce i& debt$ +o&ti&uou' b"eac%i&. o# 'et limit' i' a /a"&i&.) a' t%e de7iatio& #"om ma&date ca& .i7e "etu"&' i&co&'i'te&t /it% e;,ectatio&$

69

Secto# #isks
Di7e"'i#icatio& doe'&Et de,e&d 8u't o& %oldi&. a la".e &umbe" o# 'toc-'$ I&di7idual /%o i&7e't i& ',eciali:ed eGuit ,o"t#olio mu't "eco.&i:e t%ei" ,ote&tial 7olatilit $ I&du't" "i'- ma al'o be ,"e'e&t) albeit to a le''e" de."ee) i& di7e"'i#ied #u&d' t%at ta-e bi. ,o'itio& i& ce"tai& i&du't"ie'$

-5?-

Analysis Of Mutual Funds And Data Analysis

?9

Ma#ket #isks:
Ma"-et "i'-' i' "eall a double ed.ed '/o"d$ Mo't ,eo,le "e.a"d it a' t%e t%"eat o# #aci&. a bea" ma"-et$ T%atE' t%e mo't ob7iou' da&.e"$ Ma"-et "i'-' i' 'ometime' called M&o& 0 di7e"'i#iableN "i'- becau'e o&e ca&t a7oid it &o matte" %o/ ma& 'toc-' a"e %eld i& a ,o"t#olio$

59

C#edit #isks:
I& '%o"t it mea&' %o/ 'table i' t%e com,a& o" e&tit i') i& /%ic% /e a"e ,ooli&. ou" mo&e $

89

!c%ange #ate #isks:


A &umbe" o# com,a&ie' .e&e"ate "e7e&ue' i& #o"ei.& cu""e&cie' < ma %a7e i&7e'tme&t < e;,e&'e' al'o de&omi&ated i& #o"ei.& cu""e&cie'$ 6e&ce) c%a&.e' i& e;c%a&.e "ate' ma %a7e a ,o'iti7e o" &e.ati7e im,act o& com,a&ie' /%ic% i& tu"& /ould %a7e a& e##ect o& t%e i&7e'tme&t o# t%e #u&d$

79

&n"estment #isks:
T%e 'ecto" #u&d 'c%eme' )i&7e'tme&t /ill be ,"edomi&atel i& eGuitie' o# 'elect com,a&ie' i& t%e ,a"ticula" 'ecto"'$ I& ot%e" /o"d') it "elate' to t%e i&7e'tme&t ,o"t#olio deci'io&' o# t%e ma&a.e" o# t%e #u&d$

->1-

Analysis Of Mutual Funds And Data Analysis

Calculation of $isks:
Ri'-' ca& be calculated u'i&. 7a"iou' mea'u"e'$ Some o# t%e mea'u"e #o" calculati&. "i'-' a"e di'cu''ed belo/:

29

Standa#d De"iation
It "e#lect' t%e de."ee to /%ic% "etu"&' #luctuate a"ou&d t%ei" a7e"a.e$ T%e %i.%e" t%e 'ta&da"d de7iatio&) t%e ."eate" i' t%e "i'-$ T%e mea'u"e i' t ,icall calculated u'i&. mo&t%l "e'ult' /%ic% a"e .e&e"all di'clo'ed b Fu&d %ou'e' i& t%ei" #u&d u,date'$ A co&'e"7ati7e eGuit #u&d mi.%t %a7e a &umbe" belo/ 5$=L ,e" mo&t%) /%e"ea' a& e;t"emel a.."e''i7e o&e could %a7e a 7alue o# @L o" mo"e$ About t/o t%i"d' o# t%e time a #u&dE' actual mo&t%l "etu"& /ill "a&.e /it%i& ,lu' o" mi&u' Mo&e 'ta&da"d de7iatio&N o# it' mo&t%l a7e"a.e$ It' "etu"& /ill 7a" /it%i& t%e t/o 'ta&da"d de7iatio&' about ?= L o# t%e time$

->3-

Analysis Of Mutual Funds And Data Analysis

Ait% t%e S<P =11 Fu&d B) t%e i&7e'to" /ould be acGui"i&. a la".e" amou&t o# 7olatilit "i'- t%a& &ece''a" to ac%ie7e t%e 'ame "etu"&' a' Fu&d A$ Fu&d A /ould ,"o7ide t%e i&7e'to" /it% t%e o,timal "i'-C"etu"& "elatio&'%i,

<9

T%e )eta Measu#e:


Ma"-et "i'- i' commo&l mea'u"ed b /%atE' -&o/& a' t%e Mbeta coe##icie&tN$ It "elate' t%e "etu"& o& a 'toc- o" mutual #u&d to a ma"-et i&de;$ T%i' i' o#te& do&e b ta-i&. "etu"&' #o") 'a ) t%e ,a't 5 ea"' < co""elati&. t%em /it% t%e i&de;E' mo&t%l "e'ult'$ Beta "e#lect' t%e 'e&'iti7it o# t%e "etu"& to #luctuatio&' i& t%e ma"-et i&de;$ T%e beta #o" t%e a7e"a.e /ell-di7e"'i#ied ,o"t#olio eGual' 3$1$Ma"-et "i'- i' commo&l mea'u"ed b /%atE' -&o/& a' t%e Mbeta coe##icie&tN$ It "elate' t%e "etu"& o& a 'toc- o" mutual #u&d to a ma"-et i&de;$ T%i' i' o#te& do&e b ta-i&. "etu"&' #o") 'a ) t%e ,a't 5 ea"' < co""elati&. t%em /it% t%e i&de;E' mo&t%l "e'ult'$ Beta "e#lect' t%e 'e&'iti7it o# t%e "etu"& to #luctuatio&' i& t%e ma"-et i&de;$ T%e beta #o" t%e a7e"a.e /ell-di7e"'i#ied ,o"t#olio eGual' 3$1$

=9

T%e T#eyno# Measu#e:


De7elo,ed b Iac- T"e &o") t%i' ,e"#o"ma&ce mea'u"e e7aluate' #u&d' o& t%e ba'i' o# T"e &o"Q' I&de;$ T%i' I&de; i' a "atio o# "etu"& .e&e"ated b t%e #u&d o7e" a&d abo7e "i'- #"ee "ate o# "etu"& (.e&e"all ta-e& to be t%e "etu"& o& 'ecu"itie' bac-ed b t%e .o7e"&me&t) a' t%e"e i' &o c"edit "i'a''ociated*) du"i&. a .i7e& ,e"iod a&d ' 'tematic "i'- a''ociated /it% it (beta*$ a' T"e &o"Q' I&de;O (Ti* O (Ri - R#*CBi A%e"e) DRiE "e,"e'e&t' "etu"& o& #u&d) DR#E i' "i'- #"ee "ate o# "etu"& a&d

->2-

Analysis Of Mutual Funds And Data Analysis

DBiE i' beta o# t%e #u&d$ All "i'--a7e"'e i&7e'to"' /ould li-e to ma;imi:e t%i' 7alue$ A%ile a %i.% a&d ,o'iti7e T"e &o"Q' I&de; '%o/' a 'u,e"io" "i'--ad8u'ted ,e"#o"ma&ce o# a #u&d) a lo/ a&d &e.ati7e T"e &o"Q' I&de; i' a& i&dicatio& o# u&#a7o"able ,e"#o"ma&ce$

69

T%e S%a#'e Measu#e:


I& t%i' model) ,e"#o"ma&ce o# a #u&d i' e7aluated o& t%e ba'i' o# S%a",e Ratio) /%ic% i' a "atio o# "etu"&' .e&e"ated b t%e #u&d o7e" a&d abo7e "i'- #"ee "ate o# "etu"& a&d t%e total "i'- a''ociated /it% it$ Acco"di&. to S%a",e) it i' t%e total "i'- o# t%e #u&d t%at t%e i&7e'to"' a"e co&ce"&ed about$ So) t%e model e7aluate' #u&d' o& t%e ba'i' o# "e/a"d ,e" u&it o# total "i'-$ S mbolicall ) it ca& be /"itte& a' : S%a",e I&de; (Si* O (Ri - R#*CSi A%e"e) Si i' 'ta&da"d de7iatio& o# t%e #u&d$ A%ile a %i.% a&d ,o'iti7e S%a",e Ratio '%o/' a 'u,e"io" "i'--ad8u'ted ,e"#o"ma&ce o# a #u&d) a lo/ a&d &e.ati7e S%a",e Ratio i' a& i&dicatio& o# u&#a7o"able ,e"#o"ma&ce$

?9

T%e Fenson Model:


Ie&'o&Q' model ,"o,o'e' a&ot%e" "i'- ad8u'ted ,e"#o"ma&ce mea'u"e$ T%i' mea'u"e /a' de7elo,ed b Mic%ael Ie&'o& a&d i' 'ometime' "e#e""ed to a' t%e Di##e"e&tial Retu"& Met%od$ T%i' mea'u"e i&7ol7e' e7aluatio& o# t%e "etu"&' t%at t%e #u&d %a' .e&e"ated 7'$ t%e "etu"&' actuall e;,ected out o# t%e #u&d .i7e& t%e le7el o# it' ' 'tematic "i'-$ T%e 'u",lu' bet/ee& t%e t/o "etu"&' i' called Al,%a) /%ic% mea'u"e' t%e ,e"#o"ma&ce o# a #u&d com,a"ed /it% t%e actual "etu"&' o7e" t%e ,e"iod$ ReGui"ed "etu"& o# a #u&d at a .i7e& le7el o# "i'- (Bi* ca& be calculated a':

Ri O R# J Bi (Rm - R#*
A%e"e) Rm i' a7e"a.e ma"-et "etu"& du"i&. t%e .i7e& ,e"iod$ A#te" ->5-

Analysis Of Mutual Funds And Data Analysis

calculati&. it) al,%a ca& be obtai&ed b 'ubt"acti&. "eGui"ed "etu"& #"om t%e actual "etu"& o# t%e #u&d$ It com,a"e' t%e actual "e'ult' o# a ,o"t#olio /it% /%at /ould %a7e bee& e;,ected .i7e& t%e #u&dE' beta < t%e ma"-etE' be%a7io"$ I# t%e #u&d #a"e' bette" t%a& ,"edicted) it %a' a ,o'iti7e al,%a < 7ice-7e"'a$ 6i.%e" al,%a "e,"e'e&t' 'u,e"io" ,e"#o"ma&ce o# t%e #u&d a&d 7ice 7e"'a$ Limitatio& o# t%i' model i' t%at it co&'ide"' o&l ' 'tematic "i'- &ot t%e e&ti"e "i'- a''ociated /it% t%e #u&d a&d a& o"di&a" i&7e'to" ca& &ot miti.ate u&' 'tematic "i'-) a' %i' -&o/led.e o# ma"-et i' ,"imiti7e$

59

T%e Fama Model:


T%e Eu.e&e Fama model i' a& e;te&'io& o# Ie&'o& model$ T%i' model com,a"e' t%e ,e"#o"ma&ce) mea'u"ed i& te"m' o# "etu"&') o# a #u&d /it% t%e "eGui"ed "etu"& comme&'u"ate /it% t%e total "i'- a''ociated /it% it$ T%e di##e"e&ce bet/ee& t%e'e t/o i' ta-e& a' a mea'u"e o# t%e ,e"#o"ma&ce o# t%e #u&d a&d i' called &et 'electi7it $ T%e &et 'electi7it "e,"e'e&t' t%e 'toc- 'electio& '-ill o# t%e #u&d ma&a.e") a' it i' t%e e;ce'' "etu"& o7e" a&d abo7e t%e "etu"& "eGui"ed to com,e&'ate #o" t%e total "i'ta-e& b t%e #u&d ma&a.e"$ 6i.%e" 7alue o# /%ic% i&dicate' t%at #u&d ma&a.e" %a' ea"&ed "etu"&' /ell abo7e t%e "etu"& comme&'u"ate /it% t%e le7el o# "i'- ta-e& b %im$ ReGui"ed "etu"& ca& be calculated a': Ri

O R# J SiCSmR(Rm 0 R#*

A%e"e) Sm i' 'ta&da"d de7iatio& o# ma"-et "etu"&'$ T%e &et 'electi7it i' t%e& calculated b 'ubt"acti&. t%i' "eGui"ed "etu"& #"om t%e actual "etu"& o# t%e #u&d$

->>-

Analysis Of Mutual Funds And Data Analysis

$isk Ad/usted Pe#fo#mance


Met%odology:
T%e S%a",e) Fama) T"e &o" a&d Ie&'o& "atio' o# all t%e #u&d' i& eac% cate.o" i' calculated o& a dail ba'i' #"om 53't Ma"c% 2112 to 53't Ma"c% 2114$ T%e #u&d' a"e t%e& 'e,a"atel "a&-ed o& all t%e ,a"amete"' i& eac% cate.o" $ T%e a7e"a.e o# t%e'e "a&-' a"e calculated i& eac% cate.o" a&d "a&-ed acco"di&.l $ T%e 'ta&da"d de7iatio& a&d a7e"a.e "etu"&' o# t%e #u&d' a"e ,lotted i& eac% cate.o" $ T%e a7e"a.e o# t%e 'ta&da"d de7iatio& a&d a7e"a.e "etu"&' o# t%e #u&d' i& eac% cate.o" i' co&'ide"ed a' a be&c%ma"-$ I# t%e #u&dE' 'ta&da"d de7iatio& i' abo7e t%e a7e"a.e 'ta&da"d de7iatio& i& t%at cate.o" ) t%o'e #u&d' a"e co&'ide"ed a' mo"e "i'- $ A B+! mat"i; i' c"eated ba'ed o& t%e 'ta&da"d de7iatio& a&d a7e"a.e "etu"&'$ Fi"'t Suad"a&t - 6i.% Ri'- < 6i.% Retu"& Seco&d Suad"a&t - Lo/ Ri'- < 6i.% Retu"& T%i"d Suad"a&t - Lo/ Ri'- < Lo/ Retu"& Fou"t% Suad"a&t - 6i.% Ri'- < Lo/ Retu"&

->=-

Analysis Of Mutual Funds And Data Analysis

Relati7e Ri'- Retu"& a&al 'i' (EGuit Di7e"'i#ied Sc%eme'*

Lo/ Ri'- 6i.% Retu"&


SBI Ma.&um !lobal 9ota- O,,o"tu&itie' DSP ML Ti.e"$ Bi"la Su& li#e EGuit Tata I&#"a't"uctu"e$

6i.% Ri'- 6i.% Retu"&


SBI Ma.&um Midca,$ Tata Select EGuit $ 6DF+ EGuit $ P"u I+I+I D a&amic Pla& SBI Ma.&um Multi,lie" Plu'$

9ota- 51 6DF+ To, 211 Relia&ce !"o/t%$ Relia&ce EGuit O,,o"tu&itie'

Tata EGuit O,,o"tu&itie' UTI T%ematic Mid +a,$ 6SB+ I&dia O,,o"tu&itie'$

Lo/ Ri'- Lo/ Retu"&

6i.% Ri'- Lo/ Retu"&

->@-

Analysis Of Mutual Funds And Data Analysis

$isk and $etu#n


Retu"&' ac"o'' 7a"iou' a''et cate.o"ie' %a7e '%o/& t%at eGuit '%a"e' .i7e t%e %i.%e't le7el o# "etu"&' i& t%e lo&.-te"m) #ollo/ed b co",o"ate bo&d' a&d de,o'it' a&d la'tl ba&- de,o'it' a&d .o7e"&me&t debt$ P"edictabl t%e le7el o# "i'- i' al'o i& t%e 'ame o"de"$ Mutual Fu&d' o##e" a "a&.e o# 'c%eme' t%at co7e" di##e"e&t le7el' o# Ri'-' H' Retu"&'$

0ays to MinimiGe $isks.


Mi&imum t%e "i'- - bette" t%e #u&d$N So it i' t%e 8ob o# t%e Fu&d Ma&a.e" to ,"o7ide ma;imum "etu"&' /it% mi&imum "i'-$ So %e %a to mi&imi:e t%e "i'-' i&7ol7ed$ Mi&imi:atio& o# "i'-' ca& be do&e b 7a"iou' mea'u"e'$

29

MinimiGing $isk by Di"e#sification:


A%e& o&e i&7e't' i& Mutual Fu&d') %e i&'ta&tl ',"ead' %i' "i'- o7e" a &umbe" o# di##e"e&t com,a&ie'$ O&e ca& al'o di7e"'i# o7e" 'e7e"al di##e"e&t -i&d' o# 'ecu"itie' b i&7e'ti&. i& di##e"e&t mutual #u&d') #u"t%e" ->2-

Analysis Of Mutual Funds And Data Analysis

"educi&. %i' ,ote&tial "i'-$ Di7e"'i#icatio& i' a ba'ic "i'- ma&a.eme&t tool t%at o&e /ould li-e to u'e t%"ou.%out %i' li#etime a' to "ebala&ce %i' ,o"t#olio to meet %i' c%a&.i&. &eed'$ I&7e'to"') /%o a"e /illi&. to mai&tai& a mi; o# eGuit '%a"e') bo&d') < mo&e ma"-et 'ecu"itie') %a7e a ."eate" c%a&ce o# ea"&i&. 'i.&i#ica&tl %i.%e" "etu"&' o7e" time t%a& t%o'e /%o i&7e't i& o&l t%e mo't co&'e"7ati7e i&7e'tme&t'$ Additio&all ) a di7e"'i#ied a,,"oac% to i&7e'ti&.- combi&i&. t%e ."o/t% ,ote&tial o# eGuitie' /it% t%e %i.%e" i&come o# bo&d' < t%e 'tabilit o# mo&e ma"-et'- %el,' mode"ate o&eE' "i'- < e&%a&ce' ,ote&tial "etu"&$

<9

MinimiGing $isk by Asset Allocation:


A''et allocatio& i' .e&e"all t%e mo't im,o"ta&t #acto" i& dete"mi&i&. t%e "etu"& o& ou" i&7e'tme&t'$ I& #act) acco"di&. to "e'ea"c%) a''et allocatio& (t%e t ,e' o" cla''e' o# 'ecu"itie' o/&ed* dete"mi&e' a,,"o;imatel ?1L o# t%e "etu"&$ T%e "emai&i&. 31L o# t%e "etu"& i' dete"mi&ed b /%ic% ,a"ticula" i&7e'tme&t' ('toc-) bo&d) mutual #u&d etc$* o&e 'elect' < /%e& %e decide' to bu t%em$ A''et allocatio& i' t%e co"&e"'to&e o# .ood i&7e'ti&.$ T%"ee -e a"ea' t%at dete"mi&e i&7e'tme&t ,e"#o"ma&ce #o" eac% a''et cla'' i& MA''et allocatio& ModelN: E;,ected "etu"&: T%i' i' a& e'timate o# /%at t%e a''et cla'' /ill ea"& i& t%e #utu"e- bot% i&come < ca,ital .ai&- ba'ed o& bot% %i'to"ical ,e"#o"ma&ce < eco&omic ,"o8ectio&'$ Ri'-: T%i' i' mea'u"ed b loo-i&. to t%e a''et cla''E' ,a't ,e"#o"ma&ce$ I# a& i&7e'tme&tE' "etu"&' a"e 7olatile) it i' co&'ide"ed %i.%-"i'-$ +o""elatio&: It i' dete"mi&ed b 7ie/i&. t%e e;te&t to /%ic% a''et cla''e' te&d to "i'e < #all to.et%e"$ 6i.% co""elatio& '%o/') deci'io& to i&7e't i& t%em /ill i&c"ea'e "i'-$ T%e co""ect a''et mi; /ill %a7e a lo/ co""elatio& amo&. a''et cla''e'$ ->4-

Analysis Of Mutual Funds And Data Analysis

=9

Time $educes Ma#ket $isk:


To ma-e mo&e i& t%e 'toc- ma"-et) o&e %a' to /it% t%e ,"obabilitie') /%ic% mea&' %a&.i&. i& t%e"e#o"e t%e lo&. te"m$ O&e o# t%e mo't im,o"ta&t ,oi&t' to "emembe" about "i'- i' t%at a& 'toc- ca& be 7e" "i'- a' a '%o"t-te"m i&7e'tme&t$ Still itE' ,o''ible) alt%ou.% &ot li-el #o" 'toc-' to ,e"#o"m mi'e"abl ma"-et "i'- i& ma& /a '$ #o" a /%ole decade$ O&e ca& deal /it%

69

$u'ee Cost A"e#aging , Systematic &n"estment Plan:


I# o&e i&7e't' 'ame amou&t o# mo&e eac% mo&t% i& a mutual #u&d) %e i' e&.a.i&. i& MRu,ee +o't A7e"a.i&.$ S%a"e ,"ice' c%a&.e #"om mo&t% to mo&t%) 'o t%at 'et amou&t o# mo&e o&e i&7e't' bu ' di##e"e&t amou&t' o# '%a"e'$

?9

MinimiGing #isk by Ado'ting diffe#ent Management Styles


T%e mo't commo& /a o# le7e"a.i&. t%e "i'-' a' ,e" t%e i&7e'to"' "i'a,,etite /%ic% mo't Mutual #u&d com,a&ie' a"e ado,ti&. t%e'e da ' to att"act mo"e cu'tome"' a' it e&able' t%em to ,"o7ide e;actl i&7e'to"' de'i"e$ /%at

->?-

Analysis Of Mutual Funds And Data Analysis

:lobal Mutual Fund &ndust#y -s &ndian Mutual Fund &ndust#y


T%e I&dia& mutual #u&d' i&du't" %a' bee& ."o/i&. at a %ealt% ,ace o# 3@$>>L #o" t%e la't 4 ea"' /%ic% i' #a" 'u,e"io" a' com,a"ed to t%e ."o/t% "ate #o" t%e /o"ld/ide mutual #u&d i&du't" ) /%ic% %a' bee& a"ou&d 35L i& t%e 'ame ,e"iod$ T%e I&dia& mutual #u&d' i&du't" %a' R' 2=>)=3? c"o"e' /o"t% o# a''et' u&de" ma&a.eme&t a' o& 51t% No7 211@ /%ic% i' a ',ectacula" ."o/t% o# 52L #"om la't ea") T%e ."o/t% ca& be att"ibuted to t%e boomi&. eGuit ma"-et' i& ma8o"it o# t%e cou&t"ie' ac"o'' t%e .lobe$ T%e "i'e %a' bee& %i.%e" i& ca'e o# I&dia becau'e o# t%e com,a"ati7el 'malle" ba'e$ A' o& 51t% Iu&e 1=) /o"ld/ide mutual #u&d' ma&a.e a''et' /o"t% T3@$>3 t"illio&) /%ile I&dia %a' a mea."e 1$22L '%a"e o# t%e /o"ld ma"-et$ EGuit #u&d a''et' "e,"e'e&t >5L o# t%e /o"ld/ide mutual #u&d a''et') /%ile mo&e ma"-et #u&d' a"e 3?L) a&d '%a"e o# bo&d #u&d' 'ta&d' at 21L$ Bala&ced #u&d' "e,"e'e&t ?L o# t%e total a''et'$ T%e I&dia& 'to" i' %o/e7e" Guite di##e"e&t - t%e eGuit #u&d a''et' %a7e #o"med o&l 22L o# t%e total I&dia& i&du't" E' AUM a' o& 51t% Iu&e 1@$ T%i' i' de',ite t%e #act t%at t%e eGuit i&#lo/' i& I&dia %a7e /it&e''ed a 'tu,e&dou' "i'e o# 35>L i& t%e ea" 1=-1@$ T%e eGuit cult %a' bee& ',"eadi&. #a't i& t%e cou&t" a&d i&7e'to"' %a7e 'ta"ted "eco.&i:i&. t%e 'i.&i#ica&ce o# t%e mutual #u&d "oute to e&te" t%e 'toc- ma"-et'$ T%e I&dia& mutual #u&d i&du't" i' mo7i&. to/a"d' t%e i&te"&atio&al t"e&d' /%e"e t%e mutual #u&d' %a7e 7e" %i.% acce,ta&ce le7el a&d a"e ,"e#e""ed o7e" di"ect i&7e'tme&t i& 'toc-'$ T%e %u.e ,a"tici,atio& o# I&dia& i&7e'to"' i& t%e NFO' "ece&tl demo&'t"ate' t%e i&c"ea'ed acce,ta&ce le7el' o# eGuit mutual #u&d' i& t%e cou&t" $ A' o& No7embe" 51) 211@ t%e eGuit a''et' %a7e i&c"ea'ed to almo't 5@L o# t%e total I&dia& mutual #u&d -=1-

Analysis Of Mutual Funds And Data Analysis

a''et' b"i&.i&. it clo'e to t%e .lobal le7el'$ LiGuidC mo&e ma"-et #u&d' com,"i'e o# a la".e ,a"t o# t%e I&dia& mutual #u&d a''et' a&d 'ta&d' at 52L a' com,a"ed to t%ei" /o"ld/ide '%a"e o# 3?L$ La".e i&'titutio&' a&d co",o"ate %ou'e' ,a"- t%ei" 'u",lu' '%o"t te"m #u&d' i& liGuid 'c%eme' a' it ,"o7ide' /it% ta; e##icie&t "etu"&'$ Ao"ld/ide) t%e"e a"e about ==)?21 'c%eme' a&d >3L a"e eGuit -o"ie&ted 'c%eme') /%e"ea' 2>L a"e Bo&d #u&d') 21L a"e bala&cedCmi;ed #u&d') a&d @L a"e mo&e ma"-et #u&d'$ I& I&dia t%e"e a"e >?= 'c%eme' a' o& 51t% No7 1= a&d >2L a"e eGuit -o"ie&ted 'c%eme') >3L a"e Bo&d Fu&d'$ O# t%e'e 'c%eme') t%e la".e" #u&d' %old t%e ma;imum a''et' a' "e7ealed belo/: I& t%e eGuit cate.o" ) to, 31 'c%eme' i& te"m' o# co",u'K %old 22L o# total a''et'$ To, 3= 'c%eme' %old 5=L a&d to, 21 'c%eme' %old >2L$ To, 24 'c%eme' %old mo"e t%a& =1L o# t%e a''et'$ +o&'ide"i&. t%e"e a"e 232 'c%eme' i& t%e eGuit cate.o" t%e domi&a&ce o# 'ome o# t%e to, 'c%eme' i' Guite clea"$ A %a&d#ul o# ,la e"' i& t%e i&du't" ma&a.e a la".e c%u&- o# mo&e a' o# &o/$ But /it% mo"e .lobal a''et ma&a.eme&t com,a&ie' Gueui&. to e&te" t%e I&dia&$ No/ #o" all it' ."o/t% i& la't ea"') t%e ma"-et i' 'till 7e" 'mall a&d "e't"icted bot% i& te"m' o# ,e&et"atio&$ T%e I&du't" #ace' com,etitio& #"om ot%e" t"aditio&al i&7e'tme&t a7e&ue' a' /ell - i&'u"a&ce) ,e&'io& ,la&' a&d ,"o7ide&t #u&d i&7e'tme&t') com,a& de,o'it' a&d #i;ed de,o'it' etc$ T%e I&dia& eGuit ',ace %a' a lo&. /a to .o be#o"e t%e catc% u, /it% t"aditio&al mode o# i&7e'tme&t$ Fo" t%e i&du't" to eme".e a' a ,"e#e""ed i&7e'tme&t 7e%icle #o" t%e commo& i&7e'to") it %a' to o7e"come ot%e" %u"dle' al'o 'uc% a') ,e&et"atio& a&d e;,a&di&. t%e ma"-et "eac%$ T%e e;i'ti&. &et/o"- o# Di't"ibuto"' t%at t%e i&du't" i' %ea7il "elia&t o& i' co&ce&t"ated i& #e/ ma8o" citie' a&d met"o' o&l a&d it %a' to e;,a&d .eo."a,%icall $

-=3-

Analysis Of Mutual Funds And Data Analysis

:old !c%ange T#aded Funds


T%e deci'io& !old E;c%a&.e T"aded Fu&d' /it% F.oldQ a' t%e u&de"l i&. a''et /ill #acilitate bu i&. a&d 'elli&. o# t%e ello/ metal e7e& i& t%e 'malle't o# u&it'$ T%i' i' a /elcome mo7e t%at 'i.&i#ie' I&dia i' catc%i&. u, /it% t%e de7elo,ed ma"-et'$ !old ETF t ,icall i' a& E;c%a&.e T"aded Mutual Fu&d U&it li'ted a&d t"aded o& a 'toc- e;c%a&.e$ !old i' t%e u&de"l i&. a''et #o" t%e u&it' o# t%at #u&d$ E7e" !old ETF U&it "e,"e'e&t' a de#i&ite Gua&tum o# ,u"e .old a&d t%e t"aded ,"ice o# t%at !old U&it mo7e' i& ta&dem /it% t%e ,"ice o# t%e actual .old metal a' i' t"aded i& a& bi. .old me"c%a&t o" i& a& metal e;c%a&.e$ A mutual #u&d %ou'e lau&c%i&. a !old ETF a,,oi&t' Aut%o"i'ed Pa"tici,a&t' /%o i&itiall bu t%e u&it' o# !old ETF #"om t%e mutual #u&d b e;c%a&.i&. actual ,u"e .old #o" t%e u&it' o# !old ETF$ T%e'e Aut%o"i'ed Pa"tici,a&t' #acilitate 'eco&da" ma"-et t"adi&. t%"ou.% o# t%e !old ETF U&it' t%"ou.% t%e Stoc- E;c%a&.e) /%e"e i&7e'to"' ca& bu o" 'ell .old u&it' o& ,a me&t) #o" Gua&titie' a' 'mall a' o&e u&it$ T%e u&de"l i&. a''et U t%at i') .old U i' %eld b a mutual #u&d %ou'e i''ui&. 'uc% u&it' eit%e" i& a ,% 'ical #o"m o" t%"ou.% a F.old "ecei,tQ .i7i&. "i.%t o# o/&e"'%i,$ Aut%o"i'ed ,a"tici,a&t' ca& .o bac- to t%e mutual #u&d %ou'e to "edeem t%e .old ETF U&it' a&d ca& dema&d eGui7ale&t 7alue o# actual ,u"e .old at a& time$

(ow t%e unit '#ice is dete#mined*


Ab"oad) t%e ,"actice /it% .old t"aded #u&d' i' t%at o&e u&it "e,"e'e&t' o&e-te&t% o# a& ou&ce o# ,% 'ical .old$ So i# t%e"e a"e i&7e'to"' i& t%e #u&d /%o %old 31)111 u&it') t%at mea&' t%e #u&d mu't %a7e ,% 'ical .old /o"t% 311 ou&ce'$ A' t%e ,"ice o# .old "i'e' a&d #all') t%e 7alue o# t%e u&it /ill mo7e acco"di&.l $ Iu't li-e a mutual #u&d) t%e 7alue ,e" u&it /ill be t%e total 7alue o# .old %eld di7ided b t%e &umbe" o# u&it') mi&u' t%e e;,e&'e' o# t%e #u&d$ -=2-

Analysis Of Mutual Funds And Data Analysis

0%y in"est in :old TFs*


!OLD ETF /ill ,"o7ide a 'c"ee&-ba'ed ,lat#o"m to i&7e'to"' to accumulate Gualit .old i& 'mall lot'$ !old i' a %ed.e a.ai&'t i&#latio&$ A' i&#latio& "i'e') ou" "u,ee /ill bu ou le'' t%a& /%at it did ea"lie"$ But t%e ,"ice o# .old /ill co&ti&ue to "i'e$ T%at mea&' ou" i&7e'tme&t i& .old doe' &ot lo'e it' 7alueK it' 7alue could i&c"ea'e$ !old %a' ,"o7e& to be a .ood %ed.e a.ai&'t i&#latio& a&d mai&tai&ed a lo&.-te"m 7alue$ !old i' &ot %i.%l co""elated /it% ot%e" #i&a&cial a''et' 'uc% a' 'toc-') cu""e&c a&d bo&d') /%ic% a"e di"ectl a##ected b t%e cou&t" Q' eco&om $ 6e&ce) it o##e"' a .ood di7e"'i#icatio& a&d "educe' o7e"all "i'-C7olatilit o# i&7e'tme&t'$ !old %a' a "ead a&d /ide acce,tabilit $ 6e&ce) e;c%a&.i&. it #o" ca'% o" "ai'i&. mo&e a.ai&'t .old i' ea'ie"$

-=5-

Analysis Of Mutual Funds And Data Analysis

T%e +SS Ad"antage.


Ta; Sa7i&.' i' a 7e" im,o"ta&t ,a"t o# #i&a&cial ,la&&i&.$ Po't ta; "etu"&' a"e /%at "eall matte"' at t%e e&d o# t%e da a' t%e "eal i&come #"om i&7e'tme&t' come' #"om /%at ou ea"& a#te" ,a i&. all ta;e'$ EGuit Li&-ed Sa7i&.' Sc%eme' (ELSS* i' a& ideal /a to 'a7e o& ta; a' /ell a' 'ta i&. i&7e'ted i& eGuit mutual #u&d'$ ELSS 'c%eme' %a7e bee& i&t"oduced i& I&dia to ,"omote i&7e'tme&t' i& eGuit ma"-et' b .i7i&. ta; co&ce''io&' to t%e i&7e'to"'$ ELSS i' ba'icall eGuit -di7e"'i#ied 'c%eme a&d %a' a loc- i& ,e"iod o# t%"ee- ea"'$ Ri'i&. i&#latio& a&d u&ce"tai&t o& t%e i&te"e't "ate #"o&t %a7e tu"&ed debt #u&d' i& to lac-lu't"e$ I&te"e't "ate' o& ot%e" i&7e'tme&t a7e&ue' 'uc% a' ba&- de,o'it' a"e ieldi&. lo/e" "etu"&' a&d %e&ce o&e ca&&ot a7oid i&7e'ti&. i& eGuitie'$ T%u' o&e ca& 'a7e o& ta; a' /ell a' ea"& %i.% "etu"&' b i&7e'ti&. i& ELSS$ O7e" a lo&.-te"m) "etu"& #"om eGuitie' .et 'moot%e&ed a&d %a7e beate& "etu"&' o& t%e debt 'ide$ T%u' ELSS i' a& ideal o,tio& #o" i&7e'to"' /%o a"e co&'ide"i&. i&7e'ti&. i& eGuit mutual #u&d' #o" a lo&.-te"m %o"i:o&$ Fo" t%e #i"'t time) debt a&d eGuit a"e bei&. t"eated o& ,a" #o" t%e ,u",o'e o# ta; ,la&&i&.$ I# o&e i' i&cli&ed to/a"d' eGuitie') a' ou '%ould be i& ci"cum'ta&ce' /%e"e ,o't-ta; debt "etu"&' ba"el beat i&#latio&) ELSS '%ould ,la a bi..e" "ole i& o&e' ,o"t#olio$ T%e combi&e t%e u&matc%ed ."o/t% ,ote&tial o# eGuitie' /it% t%e be't ta; 'a7i&.' ,o''ible u&de" t%e &e/ "ule'$

-=>-

Analysis Of Mutual Funds And Data Analysis

&ncome Funds "s. )onds , Debentu#es


+iDuidity:
I&7e'to"' i&7e'ti&. i& debe&tu"e' a&d bo&d' %a7e to loc- i& t%ei" mo&e #o" a ,a"ticula" ,e"iod o# time ba'ed o& t%e matu"it o# t%e i&'t"ume&t$ Some i&'t"ume&t' do ,"o7ide i&7e'to"' /it% a& ea"l e;it o,tio& i& te"m' o# a ,ut a&d call o,tio& o" li'ti&. o& t%e 'toc- e;c%a&.e'$ But t%i' #acilit i' &ot al/a ' be&e#icial to t%e i&7e'to" i& t%e "eal /o"ld$ I& t%e ca'e o# t%e ,ut a&d call o,tio&) t%e i&7e'to" %a' a& o,tio& to e;it o&l at ce"tai& ',eci#ic time i&te"7al'$ Fu"t%e"mo"e) 7e" #e/ i&'t"ume&t' o##e" t%i' #acilit $ O& t%e ot%e" %a&d i&7e'to"' i&7e'ti&. i& a& I&come Fu&d ca& "edeem t%ei" u&it' /%e&e7e" t%e /a&t) a&d &o"mall t%e "edem,tio& c%eGue' a"e .i7e& /it%i& t%"ee bu'i&e'' da '$

C%ange in inte#est #ate:


I&7e'tme&t' i& debe&tu"e a&d bo&d' a"e loc-ed i& at t%e i&te"e't "ate at /%ic% t%e i''ue" i''ue' t%e i&'t"ume&t'$ T%e i&7e'to" doe' &ot .et t%e be&e#it o# a c%a&.e i& t%e i&te"e't "ate 'ce&a"io i# t%e i&'t"ume&t' a"e &ot li'ted o& t%e 'toce;c%a&.e$ I& t%e #alli&. i&te"e't "ate 'ce&a"io it ma-e' mo"e i&7e'tme&t 'e&'e to ,ut mo&e i& t%e I&come Fu&d' /%ic% .i7e' i&7e'to"' t%e be&e#it o# #alli&. i&te"e't "ate' i& te"m' o# i&c"ea'e i& t%e 7alue o# t%e u&de"l i&. a''et' (i$e$ debt i&'t"ume&t' bou.%t* a' com,a"ed to loc-i&. i& t%e i&7e'tme&t at a ,a"ticula" i&te"e't "ate #o" a lo&. ,e"iod

&dle money:
Fo" i&7e'to"' i&7e'ti&. i& t%e debe&tu"e' a&d bo&d' t%e"e i' a la. bet/ee& t%e matu"it o# t%e ea"lie" i&7e'tme&t a&d "ei&7e'tme&t' i& a #"e'% i''ue$ 6e&ce t%e"e i' a& i&te"mitte&t ,e"iod /%e& t%e mo&e doe' &ot ea"& a& i&te"e't o" lie' idle$ -==-

Analysis Of Mutual Funds And Data Analysis

T%at /ould &ot be t%e ca'e /it% i&come #u&d'$ 6e"e a& i&7e'to" ca& ma-e ,u"c%a'e' /%e&e7e" %e /a&t' to$ It e7e& .i7e' i&7e'to"' t%e be&e#it o# ,a"t "edem,tio& i# %e &eed' it #o" a& i&te"mitte&t ,e"iod$

Matu#ity and Huality of Debt:


A%e& a& i&7e'to" ma-e' i&7e'tme&t' i& t%e debe&tu"e o" bo&d') t%e i&7e'to" %a' to acce'' t%e matu"it a&d Gualit o# t%e debt i''ue a&d t%e i''ue"$ Ait% t%e mo&e i&7ol7ed bei&. %i.% i& eac% i''ue it i' di##icult #o" t%e i&7e'to" to al/a ' di7e"'i# a&d t%e i&7e'to" e&d' u, co&ce&t"ati&. %i' i&7e'tme&t' - a cla''ic ca'e o# ,utti&. all t%e e..' i& o&e ba'-et$ A%e& a& i&7e'to" "oute' t%e mo&e i& a& I&come Fu&d t%e o&u' o# c%ec-i&. t%e c"edit Gualit a&d ma&a.i&. t%e matu"it ,"o#ile o# t%e debt 'o a' to ,"o7ide liGuidit to t%e i&7e'to"' "e't' /it% t%e #u&d ma&a.e" a&d t%e #u&d %ou'e$

&ncome Funds -s Fi!ed De'osits.


Safety: )ank Fi!ed De'osits E Mo't o# t%e i&7e'to"' belie7e t%at t%e ba&- #i;ed
de,o'it' a"e 'a#e$ T%i' t"ue - but o&l to 'ome e;te&t$ Ba&- #i;ed de,o'it' a"e i&'u"ed u,to R'$3 la-%$ Be o&d t%i' 7alue) t%e "i'- o# lo'' o# ca,ital a&d i&te"e't i' /it% t%e de,o'ito"$ Fu"t%e"mo"e) t%i' .ua"a&tee i' o&l a7ailable to t%o'e ba&-') /%ic% ,a t%e &ece''a" ,"emium #o" t%i' #acilit to it' de,o'ito"'$ So) o&e' mo&e i' .ua"a&teed u,to R'$ 3 la-% a&d be o&d t%at) o&e ca""ie' /%ate7e" "i't%e"e ma be$

&ncome Fund Offe#ed by Mutual Funds E A%e& o&e i&7e't i& t%e i&come
#u&d' ma&a.ed b mutual #u&d') t%e a"e ,utti&. t%ei" mo&e /it% ,"o#e''io&al mo&e ma&a.e"') /%o do com,lete c"edit a&al 'i' o# t%e 'ecu"itie' a&d com,a&ie' i& /%ic% t%e i&7e't a&d i&te"e't "ate a&al 'i' ba'ed o& t%e I&dia& -=@-

Analysis Of Mutual Funds And Data Analysis

a&d .lobal eco&om $ T%e mo&e ) /%ic% i' i&7e'ted) belo&.' to t%e i&7e'to"' a&d t%e NAH (&et a''et 7alue* decla"ed o& t%e dail ba'i' i' t%e 7aluatio& o# ou" %oldi&.' o& t%at da a&d t%e #u&d i' liable to ,a /%ic% i' ,"o#e''io&all ma&a.ed b ou t%at mo&e i# o&e 8ob i' "edeem' %i' i&7e'tme&t$ T%u' o&e i' com,letel i& co&t"ol o# %i' i&7e'tme&t ) a #u&d ma&a.e" /%o'e o&l ma&a.i&. a''et' da -i& a&d da -out$

Notional $etu#ns on &n"estment:


Notio&al "etu"& o& i&7e'tme&t i' t%e "etu"& t%at ou" i&7e'tme&t ea"&' but t%at i' &ot /%at /e actuall .et i&to ou" %a&d' due to ta;e' a,,licable o& ou" "etu"&'$

)ank Fi!ed De'osits 1 T%e "etu"& o& i&7e'tme&t i& t%e ba&- #i;ed de,o'it i'
#i;ed at t%e "ate at /%ic% /e %a7e ,ut ou" mo&e $ No matte" %o/ t%e i&te"e't "ate mo7e' (eit%e" u, o" do/&* i& t%e eco&om /e a"e a''u"ed o# t%e i&te"e't "ate t%at /e a"e .oi&. to "ecei7e till t%e ,e"iod t%at /e %a7e a."eed u,o& at t%e time o# ou" de,o'it$

&ncome Fund Offe#ed by Mutual Funds 1 T%e "etu"&' o& t%e i&7e'tme&t i&
t%e u&de"l i&. a''et' o# t%e i&come #u&d' (i$e$ 'ecu"itie' bou.%t b t%e #u&d e$.$ .o7e"&me&t 'ecu"itie') t"ea'u" bill' etc* a"e i& t/o /a ' 7i:$ (3*$I&te"e't "ecei7ed o& t%e 'ecu"itie' a.ai&'t /%ic% t%e mo&e /a' le&t (i$e$ t%e "ate at /%ic% t%e #u&d le&d' t%e mo&e to t%e bo""o/e"$ (2*$ +a,ital A,,"eciatio& i& t%e 7alue o# t%e 'ecu"itie' i& t%e /%ole'ale debt ma"-et$ A%e& i&te"e't "ate' "i'e') t%e ma"-et 7alue o# .o7e"&me&t 'ecu"itie'Cbo&d' #all$ A%e& i&te"e't "ate' d"o, t%e ma"-et 7alue' o# .o7e"&me&t 'ecu"itie'Cbo&d' "i'e'$ T%e ma.&itude o# c%a&.e de,e&d' o& #acto"' /%ic% i&clude le&.t% o# matu"it ) "ati&. a&d 7a"iable' "elati&. to a ',eci#ic i''ue") t%e

-=2-

Analysis Of Mutual Funds And Data Analysis

i&du't"

etc$ 6e&ce i& t%e c%a&.i&. i&te"e't "ate 'ce&a"io t%e i&come #u&d

i&7e'to"' "ecei7e t/o #old be&e#it) o&e #"om t%e i&te"e't o& mo&e le&t a&d 'eco&d #"om t%e ca,ital a,,"eciatio& o# t%e 'ecu"itie' (i& t%e /%ole'ale debt ma"-et* a.ai&'t t%e mo&e le&t$

$eal 3Actual9 #etu#ns:


T%i' i' t%e "etu"& t%at /e a' a& i&7e'to" actuall .et i& ou" %a&d' a#te" deductio& o# ta;$

)ank Fi!ed De'osits 1 T%e i&te"e't "ecei7ed o& t%e ba&- #i;ed de,o'it' i'
liable to TDS (ta; deductio& at 'ou"ce* a&d t%e i&te"e't i&come .et' clubbed /it% t%e &o"mal i&come o# t%e i&7e'to"'

&ncome Fund Offe#ed by Mutual Funds 1 T%e "etu"&' t%at t%e i&7e'to"
"ecei7e' #"om %i' i&7e'tme&t (u&it'* i& t%e Mutual Fu&d a"e eit%e" i& t%e #o"m o# di7ide&d a&dCo" i& t%e #o"m o# ca,ital a,,"eciatio&$ I& ca'e t%e i&7e'to" "ecei7e' t%e "etu"&' o& %i' i&7e'tme&t i& t%e #o"m o# di7ide&d ,a out t%a& %e i' &ot liable to ,a a& ta; ('i&ce t%e di7ide&d' a"e ta; #"ee i& t%e %a&d' o# t%e i&7e'to"*$ I& ca'e %e "ecei7e' "etu"&' i& t%e #o"m o# ca,ital a,,"eciatio& t%a& %e ca& ta-e ad7a&ta.e o# t%e be&e#it' o# i&de;atio&$

Mutual Fund "s. Duities


Mutual Fu&d' 7'$ EGuitie' - A millio& dolla" Gue'tio&$ A% '%ould /e &ot di"ectl i&to eGuitie' i&'tead o# .oi&. t%"ou.% t%e /a o# mutual #u&d'B A#te" all) /%at doe' a #u&d ma&a.e" doe') %e too i&7e't' ou" mo&e i& eGuitie'$ T%e& /% '%ould /e ,a t%e c%a".e' #o" t%at$ T%e ad7a&ta.e' o# u'i&. mutual #u&d' "oute to i&7e't i& eGuitie' ca& be b"ie#l 'ummed u, i& t%e #ollo/i&. ,oi&t' 0 Di"e#sification. w%ic% #educes #isk 3-olatility9: -=4-

Analysis Of Mutual Funds And Data Analysis

Mutual #u&d' i&7e't ou" mo&e i& di7e"'i#ied 'ecto"'$ I& ca'e /e a"e di"ectl i&7e'ti&. i& eGuitie') itE' &ot ,o''ible to di7e"'i# ou" ,o"t#olio a' muc% a' a mutual #u&d ca& do$ Mutual #u&d ca& i&7e't t%e mo&e i& 7a"iou' 'ecto"') a&d t%at /ould ma-e t%e i&7e'tme&t o& a b"oade" ba'i'$ Remembe": Di7e"'i#icatio& "educe' Ri'-$ P#o"ides in"esto# t%e access to '#ofessional fund management e!'e#tise: I&7e'tme&t i' 7e" com,licated #ield$ I&7e'tme&t i' 7e" 'imila" to ',eculati&.$ But ea"&i&. t%"ou.% ',eculatio&' a&d ea"&i&. t%"ou.% ,"o,e" i&7e'tme&t a"e t/o di##e"e&t /a '$ A 7e" #amou' Guote 'a ': MA ,e"'o& '%ould &ot ',eculate t/o time' i& %i' li#e$ 3$ A%e& %e ca&Et a##o"d to$ 2$ A%e& %e ca&$ Ait% t%e %el, o# mutual #u&d') a ,e"'o& .et' t%e ',eciali'ed -&o/led.e a&d e;,e"ie&ce o# ,"o#e''io&al' /%ic% i& "etu"& %el,' %im u&de"'ta&d %e ma"-et bette" a&d .e&e"ate .ood "etu"&'$ Ta! efficiency: Ta; - A 7e" im,o"ta&t ,oi&t /%ile ma-i&. i&7e'tme&t$ I&7e'tme&t i' ma& a time made #o" t%e 'a-e #o" .etti&. ta; be&e#it'$ Mutual #u&d' .i7e t%e i&7e'to" "etu"&' a' /ell a' o,timum ta; be&e#it'$ Acti"e management: A' me&tio&ed ea"lie") mutual #u&d' a"e ma&a.ed b t%e 7olatilit %i.%l Guali#ied ,"o#e''io&al) /%o a"e i& t%e #ield 'i&ce a lo&.e" ,e"iod o# time$ T%e u&de"'ta&d o# t%e ma"-et muc% bette" t%e& a &o"mal i&7e'to"$ T%e ma&a.eme&t &eed' to be 'ma"t a' /ell a' acti7e$ Fle!ibility , +ow minimum in"estment: -=?-

Analysis Of Mutual Funds And Data Analysis

T%e mo't im,o"ta&t be&e#it /%ic% /e ca& 'a $ A%ile i&7e'ti&. i& eGuitie' o&e &eed' to %a7e 'ou&d amou&t o# mo&e #o" .ai&i&. 'ome comme&dable ,"o#it$ A 'mall i&7e'to" ca&Et .o #o" a bi. bet$ But i& mutual #u&d') a' t%e mo&e i' ,ooled i& to.et%e") 'o a lo/ i&7e'tme&t al'o ma-e' lot' o# di##e"e&ce$ Be'ide' t%i' t%e i&7e'to" al'o e&8o ' t%e #le;ibilit $ T#ans'a#ency A' mutual #u&d' a"e "e.ulated b SEBI .uideli&e') ,"o,e" deco"um a&d dece&c i& mai&tai&ed$ I&7e'tme&t i' 7e" t"a&',a"e&t a& i&7e'to" %a' #ull i&#o"matio& about %i' i&7e'tme&t made$ P"o,e" docume&tatio&' a"e do&e a&d "e,o"t' a"e 'e&d to t%e i&7e'to" Timel
$

-@1-

Analysis Of Mutual Funds And Data Analysis

New Conce'ts.
De#i"ati"es in Mutual Funds:
T%e I&dia& "e.ulato"' %a7e '%o/& i&te&tio&' o# 'lo/l but 'u"el "ela;i&. t%e #"ame/o"- i& #a7ou" o# Mutual Fu&d'$ P"o,o'al' li-e allo/i&. MF to '%o"t-'ell 'ecu"itie') t"adi&. i& de"i7ati7e') allo/i&. i&7e'tme&t i& !old) a&d mo"e "ece&tl "ela;i&. "ule' "e.a"di&. i&7e'tme&t i& #o"ei.& eGuit a"e all 'te,' i& t%e "i.%t di"ectio&'$ Dome'tic Mutual #u&d i&du't" i& t%e "ece&t time' %a7e eme".ed a' a 't"o&. i&7e'tme&t a7e&ue) i& a la&d domi&ated b t"aditio&al i&7e'tme&t ,"oduct'- a&d #o" t%e mome&tum to co&ti&ue it i' &ece''a" t%at mo"e libe"al outloo- i' ,ut i& ,lace to "eall allo/ t%e i&du't" to ',"ead it' /i&.'$ Mutual #u&d' /e"e allo/ed to t"ade i& de"i7ati7e' b t%e "e.ulato"' to o&l %ed.e a.ai&'t t%e "i'- i& t%e ,o"t#olio) a&d o# all t%e c%a&.e' ,"o,o'ed clea"l allo/i&. u&"e't"icted t"adi&. i& de"i7ati7e' i' t%e mo't e;citi&.) becau'e o# t%e #le;ibilit it o##e"'$ A #u&d i' &ot allo/ed to$ 6ed.e a di7e"'i#ied ,o"t#olio u'i&. a 'ecto"al i&de;) becau'e it i' &ot a& e##ecti7e %ed.e$ Simila"l ) a '%o"t ,o'itio& i& ot%e" 'toc-') /%ic% do &ot #o"m ,a"t o# t%e ,o"t#olio) /ould &ot be allo/ed$

0%y De#i"ati"es in Mutual Fund*


Fu&d ma&a.e" de,e&di&. u,o& %i' 7ie/ o# t%e ma"-et') a' /ell a' a& a"bit"a.e o,,o"tu&itie' ma c%oo'e to %a7e a ,o'itio& i& de"i7ati7e' a&dCo" u&de"l i&. 'ecu"itie'$ SEBI 7ie/ i' t%at MF %a' a& o&u' to c"eate t%ei" ,"e#e""ed ,o'itio& i& t%e mo't co't-e##ecti7e ma&&e") t%"ou.% u'e o# ca'% ma"-et') de"i7ati7e' ma"-et' o" bot%$ De"i7ati7e' a&d '%o"t 'elli&. ,"o7ide a7e&ue to ma-e mo&e e7e& /%e& t%e ma"-et' #all o" mo7e 'ide/a '$ S%o"t 'elli&. i' bei&. co&tem,lated a&d o&ce allo/ed /ould .i7e t%e #u&d ma&a.e"' a lot mo"e #le;ibilit $ T%e ,ote&tial a&d

-@3-

Analysis Of Mutual Funds And Data Analysis

t%e ad7a&ta.e' t%at t%i' a7e&ue .i7e' to t%e #u&d ma&a.e" a"e imme&'e a&d 'ome i&du't" ,la e"' %a7e al"ead d"a/& u, ,la&' #o" a 'e,a"ate cla'' o# ,"oduct /%ic% #ocu'e' e&ti"el b"a&c% out i& ot%e" a"ea' a' /ell$ o& i&7e'tme&t i& de"i7ati7e' 'e.me&t) /it% acti7e ,o'itio&' i& t%e ca'% 'e.me&t) /%ic% /ill e7e&tuall %el, t%e i&du't" to

Fund Of Funds3FoF9:
Fu&d o# Fu&d' ,"o7ide a u&iGue a',ect o# i&7e'ti&. a&d o##e"' 7a"iou' be&e#it' li-e ."eate" di7e"'i#icatio&) "educed "i'-') ea'e i& #u&d 'electio& etc$ but it %a' et to ac%ie7e "eGui'ite i&7e'to" ,a"tici,atio& i& I&dia$ A FoF i' a mutual #u&d 'c%eme t%at i&7e't' ,"ima"il i& ot%e" 'c%eme' o# t%e 'ame mutual #u&d %ou'e o" 'c%eme' #loated b ot%e" mutual #u&d' %ou'e' - 8u't a' a mutual #u&d i&7e't' i& a &umbe" o# di##e"e&t 'ecu"itie'- a FoF %old' u&it' o# di##e"e&t mutual #u&d 'c%eme'$ FT I&dia D &amic PE Ratio Fu&d o# Fu&d' /a' t%e #i"'t e7e" Fu&d o# Fu&d' (FoF* lau&c%ed i& I&dia i& 2115 a&d it %a' ."o/& at a +A!R o# a"ou&d 5=L) /%ic% i' dece&t b all 'ta&da"d') but cu""e&tl t%e"e a"e o&l 2 FoF' 'c%eme' i& t%e cou&t" $ T%e i&du't" i& it' bid to mobili:e a' muc% mo&e a' ,o''ible %a' lau&c%ed eGuit 'c%eme' o&e a#te" t%e ot%e") but 'adl t%i' cate.o" o# 'c%eme' i& ',ite o# t%e imme&'e be&e#it' it ,"o7ide' to it' i&7e'to"' i' a &e.lected lot$ !loball ) t%e co&ce,t i' 7e" ,o,ula" o/i&. to t%e be&e#it' it ca""ie' but it %a' et to .ai& due "eco.&itio& i& I&dia$ P"ima"il %a7e bee& lo/e" t%a& t%e "etu"&' deli7e"ed b t%"ee "ea'o&' %a7e bee& eGuit di7e"'i#ied 'c%eme'$ "e',o&'ible #o" FoF' mode't ."o/t%$ Fi"'tl t%e "etu"&' ,o'ted b FoF 'c%eme' Seco&dl ) t%e co't i&clu'i7e o# t%e load' a&d e;,e&'e' a"e o& t%e %i.%e" 'ide /%e& com,a"ed to ot%e" eGuit #u&d') a' i&7e'to"' %a7e to bea" t%e "ecu""i&. e;,e&'e' o# t%e 'c%eme i& additio& to t%e e;,e&'e' o# u&de"l i&. 'c%eme$ T%i"dl ) t%e di##e"e&tial ta; t"eatme&t bet/ee& eGuit #u&d' a&d FoF %a' al'o

-@2-

Analysis Of Mutual Funds And Data Analysis

i&%ibited t%ei" ."o/t%$ Mutual Fu&d i&du't"

/a' %o,i&. #o" 'imila" ta;

t"eatme&t i& ca'e o# FoF #o" Guite 'ome time but t%e "ece&t bud.et too %a' o7e"loo-ed t%i' a',ect$ +u""e&tl eGuit -o"ie&ted FoF ,a di7ide&d di't"ibutio& ta; (DDT* o# 3>$15 ,e" ce&t) /%ile eGuit -o"ie&ted #u&d' a"e e;em,ted$ FoF al'o do &ot o##e" lo&.-te"m ca,ital .ai&' ta; e;em,tio&) e7e& i# t%e a"e eGuit o"ie&ted$ A' t%e ,e"#o"ma&ce o# t%e FoF' de,e&d' o& t%e ,e"#o"ma&ce o# t%e u&de"l i&. 'c%eme 'o i& o"de" to e;,loit it' t"ue ,ote&tial t%e #u&d ma&a.e" %a' to be 7e" a'tute /%ile 'electi&. t%e 'c%eme' ac"o'' t%e #u&d %ou'e'$ 6o/e7e") i& I&dia) #u&d %ou'e' %a7e co&ce&t"ated i& i&7e'ti&. i& #u&d' #"om t%ei" o/& 'table) /%ic% %a' "e't"icted t%ei" ,e"#o"ma&ce$ A,a"t #"om 9ota- Mutual Fu&d) Sta&da"d +%a"te"ed a&d Fidelit ) all ot%e" #u&d %ou'e' o##e"i&. FoF 'c%eme' a"e i&7e'ti&. i& t%e 'c%eme' #"om t%ei" o/& AM+$ Rece&tl #u&d-o#-#u&d' co&ce,t$ T%e FoF o##e"ed i& I&dia .e&e"all a"e a''et-allocatio& FoF' a&d t%u' te&d to be % b"id i& &atu"e$ Fidelit "ece&tl lau&c%ed a Multi-Ma&a.e" +a'% FoF i&7e'ti&. o&l i& liGuid 'c%eme' o# 7a"iou' mutual #u&d'$ IN! H ' a %a' lau&c%ed a 'e,a"ate di7i'io& called O,timi; t%at /ill #ollo/ t%e multima&a.e"

(ig%e# o# +owe# NA- 1 Any diffe#ence*


Some o# t%e i&7e'to"' %a7e t%e te&de&c to ,"e#e" a 'c%eme t%at i' a7ailable at lo/e" NAH com,a"ed to t%e o&e a7ailable at %i.%e" NAH$ Sometime') t%e ,"e#e" a &e/ 'c%eme /%ic% i' i''ui&. u&it' at R'$ 31 /%e"ea' t%e e;i'ti&. 'c%eme' i& t%e 'ame cate.o" a"e a7ailable at muc% %i.%e" NAH'$ I&7e'to"' ma ,lea'e &ote t%at i& ca'e o# mutual #u&d' 'c%eme') lo/e" o" %i.%e" NAH' o# 'imila" t ,e 'c%eme' o# di##e"e&t mutual #u&d' %a7e &o "ele7a&ce$ O& t%e ot%e" %a&d) i&7e'to"' '%ould c%oo'e a 'c%eme ba'ed o& it' me"it co&'ide"i&. -@5-

Analysis Of Mutual Funds And Data Analysis

,e"#o"ma&ce t"ac- "eco"d o# t%e mutual #u&d) 'e"7ice 'ta&da"d') ,"o#e''io&al ma&a.eme&t) etc$ T%i' i' e;,lai&ed i& a& e;am,le .i7e& belo/$ Su,,o'e 'c%eme A i' a7ailable at a NAH o# R'$3= a&d a&ot%e" 'c%eme B at R'$?1$ Bot% 'c%eme' a"e di7e"'i#ied eGuit o"ie&ted 'c%eme'$ I&7e'to" %a' ,ut R'$ ?)111 i& eac% o# t%e t/o 'c%eme'$ 6e /ould .et @11 u&it' (?111C3=* i& 'c%eme A a&d 311 u&it' (?111C?1* i& 'c%eme B$ A''umi&. t%at t%e ma"-et' .o u, b 31 ,e" ce&t a&d bot% t%e 'c%eme' ,e"#o"m eGuall /ell a&d it i' "e#lected i& t%ei" NAH'$ NAH o# 'c%eme A /ould .o u, to R'$ 3@$=1 a&d t%at o# 'c%eme B to R'$ ??$ T%u') t%e ma"-et 7alue o# i&7e'tme&t' /ould be R'$ ?)?11 (@11R 3@$=1* i& 'c%eme A a&d it /ould be t%e 'ame amou&t o# R'$ ??11 i& 'c%eme B (311R??*$ T%e i&7e'to" /ould .et t%e 'ame "etu"& o# 31L o& %i' i&7e'tme&t i& eac% o# t%e 'c%eme'$ T%u') lo/e" o" %i.%e" NAH o# t%e 'c%eme' a&d allotme&t o# %i.%e" o" lo/e" &umbe" o# u&it' /it%i& t%e amou&t a& i&7e'to" i' /illi&. to i&7e't) '%ould &ot be t%e #acto"' #o" ma-i&. i&7e'tme&t deci'io&$ Li-e/i'e) i# a &e/ eGuit o"ie&ted 'c%eme i' bei&. o##e"ed at R'$31 a&d a& e;i'ti&. 'c%eme i' a7ailable #o" R'$ ?1) '%ould &ot be a #acto" #o" deci'io& ma-i&. b t%e i&7e'to"$

Fund Selection:
Selecting t%e Duity Funds:
Ste' One: +la''i# t%e a7ailable eGuit 'c%eme' i& !"o/t%) Halue) EGuit I&come) B"oad -ba'ed S,ecialt a&d +o&ce&t"ated S,ecialt #u&d'$ T%e ,u",o'e o# cla''i#icatio& i' to decide /%et%e" t%e i&7e'tme&t ob8ecti7e o# t%e #u&d 'uit' t%e i&7e'to"E' &eed' a' t"a&'lated i& t%e model ,o"t#olio$ It i' ea' to ma-e t%e mi'ta-e o# loo-i&. o&l at t%e ,a't ,e"#o"ma&ce o# a #u&d a&d i.&o"i&. it' 'uitabilit #o" t%e i&7e'to"$ Fo" e;am,le) &o matte" %o/ .ood ,e"#o"ma&ce o# a ',ecialt o##'%o"e o" i&du't" #u&d) it /ould &ot be ad7i'able #o" t%e co&'e"7ati7e eGuit ,o"t#olio o# a "eti"ee$

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Analysis Of Mutual Funds And Data Analysis

Ste' Two: +%oo'e o&e o# t/o 't"ate.ie' - eit%e" (3$* Select mai&'t"eam ."o/t% o" 7alue #u&d') ,"o7idi&. b"oad di7e"'i#icatio&$ O" (2* Select eit%e" a di##e"e&tiated ."o/t% o" 7alue #u&d o" a ',ecialt #u&d /%o'e "i'-' a&d "etu"&' /ill 7a" #"om t%e o7e"all ma"-et$ Fo" a ou&. i&7e'to") a ."o/t% #u&d -be ,"e#e"able to a& eGuit i&come #u&d) mo"e 'uited to a& Qolde" i&7e'to"$ Ste' T%#ee: E7aluate ,a't "etu"&' o# a7ailable #u&d' i& eac% cate.o" mai&'t"eam) eGuit i&come o" e7e& i&de; #u&d) o" %i.% "i'-C"e/a"d ',ecialt #u&d$ Ste' Fou#: Re7ie/ t%e 'alie&t #eatu"e' o# a 'c%eme$ SEBI i& I&dia "eGui"e' t%e O##e" Docume&t o# &e/ 'c%eme' to %i.%li.%t t%e "i'- #acto" t%at a #u&dQ' ,a't ,e"#o"ma&ce i' &o .uide to t%e #utu"e i' im,o"ta&t to "emembe"$ +o&'ide" a &e/ 'c%eme o" a &e/ Bala&ced Fu&d #"om a #u&d ma&a.e" /%o %a' o##e"ed 'ucce''#ul eGuit o" debt #u&d' o" e7e& a &e/ i&de; #u&d$ Po"t#olio Ma&a.e"Q' E;,e"ie&ce: It i' .ood to -&o/ /%o ma&a.e' t%e ,o"t#olio) %o/ lo&.$ 6e %a' ma&a.ed it) a&d /%at %i' ,e"#o"ma&ce t"ac- "eco"d i'$ -

Po#tfolio C%a#acte#istics:
I$ Cas% Position: EGuit #u&d' /ould &o"mall %old little ca'%$ Too muc% ca'% mea&' ,a i&. 'ome/%at e;ce''i7e ma&a.eme&t #ee' to t%e #u&d ma&a.e"$ 6o/e7e") loo- at /%et%e" t%e ma&a.e" %a' 'ucce''#ull ,"edicted u,-ma"-et mo7e' b ,%a'e'$ II$ Po#tfolio Statistics: A%ile 'electi&. a #u&d) ou &eed to com,a"e it' ,e"#o"ma&ce /it% ot%e"'$ To e&'u"e a ,"o,e" com,a"i'o&) loo- at t%e'e mea'u"e': t%e "elati7e "etu"&) !"o'' Di7ide&d Yield) t%e "i'- a&d &et "etu"&' to t%e i&7e'to"$ III$ Po#tfolio Concent#ation: +%ec- t%e #u&dQ' la".e't te& %oldi&.' - t%ei" %oldi&. ca'% be#o"e 'uc% bull ma"-et

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Analysis Of Mutual Funds And Data Analysis

,"o,o"tio& i& t%e #u&dQ' &et a''et'$ I' t%e co&ce&t"atio& i& li&e /it% t%e 'tated ob8ecti7e o# t%e #u&dB Te& la".e't %oldi&.' accou&ti&. #o" o7e" =1L o# t%e &et a''et' mea&' t%e #u&d i' co&ce&t"ated) &ot di7e"'i#ied$ IH$ Ma#ket Ca'italiGation of t%e Fund: Iud.e t%e #u&dQ' 't"ate. b t%e 'i:e o# t%e ma"-et ca, o# it' eGuit %oldi&.' - doe' it %a7e la".e-ca,) blue c%i, '%a"e' o" eme".i&. 'mall-ca, '%a"e'B T%e ma"-et ca, al'o i&dicate' t%e le7el o# "i'-' a''umed$ Relate t%i' i&#o"matio& to t%e #u&d ob8ecti7e' a&d co&'i'te&c o# it' ,e"#o"ma&ce$ H$ Po#tfolio Tu#no"e#: A 'tead %oldi&. o# i&7e'tme&t' i&dicate' a lo&.te"m o"ie&tatio&$ La".e" tu"&o7e" - ,u"c%a'e' a&d 'ale' - could .e&e"ate %i.%e" ca,ital .ai&' but al'o %i.%e" t"a&'actio& co't' #o" t%e #u&d$

Selecting a Debt, )ond, &ncome Fund:


3* Na##ow Down t%e C%oice: Debt #u&d' %a7e a la".e" 7a"iet to c%oo'e #"om t%a& eGuit #u&d'$ T%e debt #u&d' ma %a7e '%o"t) i&te"mediate a&d lo&.-te"m ,o"t#olio'$ T%e ma i&7e't i& .o7e"&me&t 'ecu"itie') co",o"ate debe&tu"e' a&d bo&d' - i&7e'tme&t ."ade o" belo/) Fi&a&cial I&'titutio& bo&d') 'tate o" e7e& mu&ici,al le7el bo&d') o" .lobal bo&d'$ Cnow Iou# &n"esto# Ob/ecti"e: Fo" ou&. i&7e'to"' doi&. "eti"eme&t

2*

,la&&i&.) lo&.te"m bo&d #u&d' a"e a,,"o,"iate$ But) #o" "eti"ed ,e"'o&') mo&t%l i&come 'c%eme' a"e mo"e a,,"o,"iate$
=9

Dete#mine t%e $ig%t Selection C#ite#ia and select: Fu&d A.e a&d Si:e- Due to e;,licit ob8ecti7e' o# a debt #u&d) u&li-e eGuit #u&d') t%e"e i' &o %a"m i& i&7e'ti&. i& &e/ #u&d') t%ou.% t%e #u&d ma&a.e"Q' t"ac- "eco"d i' "ele7a&t to co&'ide"$ Be ca"e#ul o# #u&d' t%at i&7e't i& a' et u&-&o/& o" &e/ i&'t"ume&t'$ Simila"l ) t%e te&u"e o# t%e ,o"t#olio ma&a.e" i' al'o le'' im,o"ta&t #o" -@@-

Analysis Of Mutual Funds And Data Analysis

bo&d #u&d' t%a& #o" eGuit #u&d'$ Relati7e Yield'- I# a& i&7e'to" &eed' i&come 'elect' a #u&d /it% %i.% cu""e&t ield (#u&d di7ide&d' a' ,e"ce&ta.e o# it' ma"-et 7alue*$ But) a debt #u&d al'o %a' a ield to matu"it - #i&d it out$ YTM i' im,o"ta&t) i# t%e ob8ecti7e i' total "etu"&) &ot 8u't cu""e&t i&come$ I& a decli&i&. i&te"e't-"ate e&7i"o&me&t) a #u&d ma %old %i.% cou,o& ,"emium bo&d') /%o'e ,"i&ci,al 7alue /ill decli&e /%e& i&te"e't "ate' "i'e) cau'i&. a ca,ital lo'' a&d a lo/e" total "etu"&$ +o't': Mo"e t%a& a& eGuit #u&d) a bo&d #u&d o,e"ate' i& &a""o/ i&come ma".i&'$ Fo" a bo&d #u&d t%e"e#o"e) e;,e&'e "ate i' muc% mo"e im,o"ta&t t%a& #o" a& eGuit #u&d$ A& #"o&t-e&d) e&t" load #o" a bo&d #u&d al'o "educe' t%e "etu"& to t%e i&7e'to" 'i.&i#ica&tl $ Loo- at bot% t%e'e eleme&t' o# co't'$ +o't' i&7ol7e /%at i' called Q ield 'ac"i#iceV$ Po"t#olio +%a"acte"i'tic': Mu't -&o/ t%e ,o"t#olio Gualit i& te"m' o# t%e +"edit Rati&.' - %o/ muc% ,e"ce&ta.e o# t%e ,o"t#olio i' %eld i& %i.%e't c"edit "ated i&'t"ume&t' a&d %o/ muc% i& lo/e" "ated o" &o&-i&7e'tme&t ."ade i&'t"ume&t'$ T%i' i' a mea'u"e o# ,o"t#olio "i'- - "i'- o# c"edit de#ault b t%e #u&dQ' bo""o/e"'$ A,a"t #"om "e7ie/i&. t%e c"edit "ati&.' o# t%e i&7e'tme&t ,o"t#olio o# a 'c%eme) a&ot%e" /a to "eco.&i'e t%e "i'o# de#ault "elated lo''e' i& a debt 'c%eme i' to loo- at t%e o7e"all +"edit Rati&. o# t%e Fu&d o" Sc%eme a''i.&ed b +"edit Rati&. A.e&cie'K a #e/ #u&d' i& I&dia %a7e bee& "ated a' a /%ole$ A7e"a.e Matu"it o# a debt ,o"t#olio /ill dete"mi&e /%et%e" t%e ,o"t#olio i' 'e&'iti7e to mo7eme&t' i& i&te"e't "ate'$ T%e lo&.e" t%e a7e"a.e du"atio& o# a ,o"t#olio) t%e ."eate" t%e 'e&'iti7it - mea&i&. i&c"ea'e i& i&te"e't "ate' /ill cau'e ,o"t#olio 7alue to decli&e a&d 7ice 7e"'a$ 6i.% cu""e&t ield o# a #u&d ma come at t%e co't o# %i.%e" "i'- o# ,"i&ci,al amou&t lo''$ T%u') lo&.-te"m #u&d' ca"" a %i.%e" "i'- o# ca,ital lo'' (o" .ai&*$ -@2-

Analysis Of Mutual Funds And Data Analysis

Selecting a Money Ma#ket Fund:


a* Costs: I# e;,e&'e' a"e im,o"ta&t i& ca'e o# debt #u&d') t%e a"e c"ucial i& ca'e o# mo&e ma"-et #u&d') 'i&ce t%e .e&e"all o##e" lo/e" "etu"&' a&d e;,e&'e' ca& ta-e a/a a 'i.&i#ica&t ,a"t o# "etu"&'$ Loo- #o" #u&d' /it% lo/e" e;,e&'e "atio'$ b* Huality: Po"t#olio Gualit i' t%e ot%e" #acto" t%at a##ect' ield$ 6i.%e" ield /it% lo/e" "ated ,o"t#olio come' at %i.%e" "i'-$ Lo/e" Gualit ma %a7e 'ome 8u'ti#icatio& i& lo&.-te"m #u&d') but 'uc% "i'- i& ca'e o# '%o"t te"m mo&e ma"-et #u&d' i' u&acce,table$ c* Iields: 6i.%e" ieldi&. mo&e ma"-et #u&d' a"e &ot &ece''a"il o# lo/e" Gualit ) o" 7ice 7e"'a$ I& .e&e"al) u&li-e debt #u&d') MMMF' %a7e t%e lo/e't ,"i&ci,al) "i'- but %i.%e't i&come 7a"iabilit a' '%o"t-te"m i&te"e't "ate' #luctuate$ So 7i"tuall &o ca,ital .ai&' ,o''ibilit eit%e"$ Yield' o# ,o"t#olio' t%at a"e o# t%e 'ame Gualit a"e li-el to be &ea" ide&tical$ I& a& ca'e) loo- at a&d com,a"e Q&et ield'Q a#te" #u&d e;,e&'e' a&d load$

Selecting a )alanced Mutual Fund:


I& I&dia /e &o/ %a7e a& i&c"ea'i&. &umbe" o# Bala&ced Fu&d' a7ailable$ 6e&ce 'electi&. t%e "i.%t #u&d i' im,o"ta&t$ a* Po#tfolio )alance: P"o,o"tio& o# ,o"t#olio i& 'toc-') bo&d' a&d mo&e ma"-et 'ecu"itie' i' o&e #acto"$ Aei.%t .i7e& to cu""e&t i&come 7e"'u' total "etu"& i' a&ot%e" #acto"$ Bot% mu't be i& li&e /it% t%e i&7e'to"Q' ob8ecti7e'$ b* Debt Po#tfolio C%a#acte#: I& .e&e"al) bala&ced #u&d' a"e #o" t%e 'li.%tl co&'e"7ati7e i&7e'to"$ So it' bo&d ,o"t#olio ou.%t to be o# i&7e'tme&t ."ade Gualit ) /it% lo&. a7e"a.e matu"itie'$ c* d* Costs: Mo"e im,o"ta&t t%a& i& a& eGuit #u&d$ Fo" t%e i&come-o"ie&ted bala&ced #u&d) co't' a"e e7e& mo"e im,o"ta&t t%a& t%e eGuit -o"ie&ted t ,e$ $etu#ns: All t%at %a' bee& 'aid about %o/ to co""ectl com,ute "etu"&' o& ot%e" #u&d cate.o"ie') /%ile com,a"i&. a&d 'electi&. #"om di##e"e&t #u&d') i' al'o a,,licable to bala&ced #u&d'$

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Analysis Of Mutual Funds And Data Analysis

Facts And Figu#es:1

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Analysis Of Mutual Funds And Data Analysis

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Analysis Of Mutual Funds And Data Analysis

A7e"a.e AUM i& La't 34 Mo&t%'

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Analysis Of Mutual Funds And Data Analysis

)ibliog#a'%y
Aeb'ite': ///$ma%i&d"a#i&a&ce$com ///$.oo.le$com ///$am#ii&dia$com ///$&'ei&dia$com ///$'ebi$.o7$i& ///$-a"7 $m#'$com ///$cam'o&li&ei&dia$com

Ne/',a,e"': I&dia& E;,"e'' Time' o# I&dia 6i&du'ta& Time' Eco&omic Time'

Ma.a:i&e': Outloo- Mo&e Bu'i&e'' Ao"ld

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