Project Report On Mutual Funds

Introduction to Systematic Investment Plan (SIP)
Investing successfully in equity market demands a great deal of knowledge about

the market apart from large sum of money. This market is driven by a number of forces
and the mechanics of the same is quite difficult to understand. More often than not, a
common investor misjudges the prospects of the scripts and consequently ends up short
of what he had invested. Another constraint in his way to success is his miniscule
investble fund, as compared to the large volume of transactions of the stock market,
which restricts his diversification across a broad cross-section of industries and sectors.
He may also find himself helpless, in investing in large-cap scripts. Above all these even
if he invests in a well diversified portfolio of high-grade stocks, success is not
guaranteed. For him, to be a successful investor, it is required to learn the mantra of
market timing. It is often seen that the odd lotter enters when the market tops and exits at
its bottoms and makes some intelligent investors a bit richer during the process. So, the
question here is "what is the way out?"
By investing in mutual funds, he will get the services of experienced and skilled
professionals, backed by a dedicated investment research team that analyses the
performance and prospects of companies and selects suitable investment options at right
time. But even now the exact problem is not solved as he may end up in losses as NAV of
mutual fund can also decline and if right timing is not done an investor may end up
loosing his money.
A Mutual Fund is a trust that pools the savings of a number of investors who
share a common financial goal. The money thus collected is then invested in capital
market instruments such as shares, debentures and other securities. The income earned
through these investments and the capital appreciation realised are shared by its unit
holders in proportion to the number of units owned by them. Thus a Mutual Fund is the
most suitable investment for the common man as it offers an opportunity to invest in a
diversified, professionally managed basket of securities at a relatively low cost.
According to SEBI (the Securities and Exchange Board of India), a mutual fund
(MF) is a form of trust established to raise money by selling units to the public or a
section of the public under one or more schemes for investing in securities, including
money market instruments. Mutual Funds come under the purview of the Indian Trusts
Act, 1882.
Mutual Funds are ideal investment vehicles for those who are too busy to keep
track of whats happening in the financial markets or do not have the time or resources to
undertake the research needed to make an intelligent investment choice. It is for investors
who appreciate the obvious benefits of liquidity but not at the cost of safety and returns.
These funds can survive and thrive only if they can live up to the hopes and thrust
of their individual members. Mutual funds come to the rescue of those people who do not
excel at stock market due to certain mistakes they commit which can be minimized with
mutual funds. Such mistakes can be viz. lack of sound investments strategies,
unreasonable expectations of making money, untimely decisions of investing or
disinvesting, acting on advice given by others, putting all their eggs in one basket. Mutual
funds come to the rescue of such investors who face following constraints while making
direct investments:
Limited resources in the hands of investors quite often take them away from their
stock markets. Lack of funds forbids investors to have a balanced and diversified
portfolio. Lack of professional knowledge associated with investment business unable
investors to operate gainfully in the market. Small investors can hardly afford to have
expensive investment consultations. To buy shares, investors have to engage share
brokers to whom they have to pay brokerage charges which again adds up to their
expense. It is difficult for them to know the developments taking place in share market
and corporate sector. Allotments by the firm for small investments may not be possible.
There are various investment options available in the investment options in the
stock markets. Bank Fixed Deposits and Post Office schemes regularly come always to
the mind. Because, these were the only options available with us. They offered returns as
well as the ever-important security. If one ever needed to look for other options one could
invest in Corporate Fixed Deposits. With the revival of economy in early 1990's there
was a flurry of NBFC's wooing people and vying for a share in their investments. They
offered some astounding returns and people got stuck in to them. However, their fall was
quicker than their rise. The fall out of changes in economic conditions was that people
lost money heavily and also lost some of the trust they had for non-government agencies
when it came to savings. The second round of bouncing back of the economy brought to
the fore another major area, Mutual Funds (MFs). Despite the fact that UTI had been
around for over 30 years and had been a preferred destination for many people with US
64, its flagship, being the single largest scheme in terms of its, key corpus and its investor
base, this industry has started picking pace only in the last few years. People started
receiving Mutual Funds with caution and it were only when they found them to be safe
did some semblance of confidence return.
However, there are several things that should go against this run. For one, people
who invested early this year are not likely to have made money till now with both equity
and debt markets witnessing volatility. This makes it essential to stay invested for a
longer period than envisaged to safeguard their principal. Second, the market conditions
are temporary. With market reviving, equity based funds will see the net worth of people
going up. In fact, if return of the market in last six months is compared with Average
return of equity funds then Mutual Funds are still better off, having gone down by just
15% as against the fall of over 20% in the market. Moreover, they help people diversify
risks. On the debt market front, the market is not expecting further consolidation of
interest rates even though there are some concerns about the rising inflationary pressures
and a falling Rupee. With the previous rise in market yield already discounted, the higher
yield will help people recover fast. This in turn implies that the debt funds too will
perform well.
For the investors these are expected to be the positive signs that can help them
regain some of the confidence. Mutual Funds are not the instruments of speculation.
Equity investors need to understand that timing the market correctly being virtually
impossible a task; they would do well to stay invested for longer periods. Market will
reward the investors for their patience, as the economic cycle will turn positive in long
run. Another important issue that needs to be addressed pertains to finding the right
products to suit the investment objective. People have to control greed and invest in
schemes that suit their need. They also need to decide upon their investment horizon as
then they can choose the product with much more ease.
On the whole, the industry may have seen some market factors go against it in
recent past but the industry is here to stay. Though investor confidence has been shaken a
bit, mutual funds are still a safe destination for investors.
Though still at a blossoming stage, Indian MF industry offers a plethora of schemes

and serves broadly to all type of investors. The range of products includes equity funds,
debt, liquid, gilt and balanced funds. There are also funds meant exclusively for young
and old, small and large investors. Moreover, the setup of a legal structure, which has
enough teeth to safeguard investors interest, ensures that the investors are not cheated
out of their hard-earned money. All in all, benefits provided by them cut across the
boundaries of investor category and thus create for them, a universal appeal.
An SIP is a method of investing a fixed sum, on a regular basis, in a
mutual fund scheme. It is similar to regular saving schemes like a recurring deposit. An
SIP allows one to buy units on a given date each month, so that one can implement a
saving plan for themselves. A SIP can be started with as small as Rs 500 per month in
ELSS schemes to Rs 1,000 per month in diversified equity schemes.
Buy low sell high, just four words sum up a winning strategy for the stock
markets. But timing the market is not easy for everyone. In timing the markets one can
miss the larger rally and may stay out while the markets were doing well. Therefore,
rather than timing the market, investing month after month will ensure that one is
invested at the high and the low, and make the best out of an opportunity that could be
tough to predict in advance.
Why SIP?
Mutual Fund investments are managed by qualified and experienced professionals who
have the expertise of investment techniques, backed by dedicated investment research
team
You can purchase scheme units at a lesser cost as most of the Asset Management
Companies (AMCs) charge less entry load (for some scheme even NIL) for SIP
investments, as compared to normal purchases in the scheme.
SIPs make the volatility in the market work in your favour. Since a fixed amount is
invested more units are purchased when a schemes NAV is low and fewer units when the
NAV is high. As a result, over a period of time these market fluctuations are generally
averaged. Thus the average cost of your investment is often reduced.
Since you invest regularly, it makes you disciplined in your savings, which leads to
wealth accumulation.
The SIP reduces the average purchase cost, even in volatile markets with relative ease.
When you invest a fixed amount every month, the number of mutual fund units you
actually buy depends on their market price. Therefore, with the money you invest each
month, you can buy less units when the market moves up and more units when the
market moves down.
This means you are averaging out your cost. If you invest Rs 1000 a month at a price of
Rs 20 a unit, you will have bought 50 units (1000/20). But at a price of Rs 10 per unit,
you will have bought 100 units (1000/10). Investing a fixed sum regularly means
averaging out the cost, as you get fewer units when the price goes up and more when the
price goes down.
SWOT ANALYSIS OF THE COMPANY:
Strengths
1. Management philosophy and commitment to maximize shareholders returns
2. Upgraded product design and development facilities to develop new products and aid
diversification
3. Ongoing activities to support up gradation of operational performance and rise in
productivity
4. Team of talented and committed professionals available to improve companies
performance Weakness
1. Competition from cheap imports
2. Low customer base
Opportunities
1. UFSL has initiated development of products for diesel application. This will provide
tremendous scope for diversification and growth
2. Acquisition of AMTEC to provide opportunities to access global OEMs
3. Opportunity to support AMTECs operations by supplying products from India
4. The introduction of new emission norms will provide UFSL opportunity to develop
injection systems and thereby upgrade the status of the company from product to system
supplier.
Threats, Risks & Concerns

1. Constant pressure to be cost competitive to meet customer expectations
2. Relentless pressure to maintain profitability due to rising input/raw material prices
3. Increasing popularity of alternative fuel vehicles, such as Hybrid, Hydrogen powered,
CNG and LPG vehicles poses new challenges for the company
Theoretical Framework of Systematic Investment Plan

SIP is a service option that allows investors to buy mutual fund shares
on a regular schedule, usually through bank account deductions. The nomenclature of this
mode of investment can be different with some mutual fund houses
The primary objective of a SIP is to enable investors to clearly define an
investment goal, and then to help them reach it through systematic investment in select
equity-oriented mutual fund schemes that have a track record of consistent good
performance. Most of the mutual funds offer this facility. The real value lies in the
portfolio of the fund. Almost all schemes have the facility of steady investment plan.
Systematic investment adds value through rupee cost averaging and the power of
compounding. The net asset values (NAV) of these funds can vary widely, but through
rupee cost averaging, an SIP can make this volatility work for you. Many investors tend
to think that monthly income plan and systematic investment plan are one and the same.
The minimum monthly investment for a systematic investment plan is Rs 1,000. If you
are in the 30-40 year age group, you should probably keep to an allocation of 30-40 per
cent to equity investments. It is managed by a team of investment professionals and other
service providers with advantages of professionals management, portfolio diversification,
reducing risk, reduction of trading cost, convinces and flexibility liquidity, access to
information.
In simple words Systematic investment plan, is a simple, time-honoured strategy
designed to help investors accumulate wealth in a systematic manner over the longterm.
Systematic Investment Plan is the most effective way of investing in market

especially in a volatile market. SIP is a way to invest in a regular and disciplined manner
while taking care of volatility. It is yet another investment technique which helps in
mitigation of risk in terms of the entry point in an equity fund.
The people who want to invest should have investment analysis, proper
investment allocation is determined and it is by a systematic investment plan. It is by
established by one of the many mutual fund families offered by various Mutual Funds in
India - Principal Income Fund, Monthly Income Plan, Child Benefit Fund, Balanced
Fund, Index Fund, Growth Fund, Equity Fund and Tax Savings Fund etc.,
The best way to enter a mutual fund is through a Systematic Investment Plan. But
to get the benefit of an SIP, think of minimum three-year time frame, the returns will be
more if the no of years of investment is higher than two years.
A Systematic Investment Plan (SIP) is a disciplined way of investing, where you
make regular investments according to a set schedule you create. You often decide to start
saving and investing regularly, but get caught up in day-to-day activities and forget to
make the investment. Systematic investing is a time-tested discipline that makes it easy to
invest automatically.
Systematic Investment Plan (SIP) is a simple, time-honored strategy designed to help
investors accumulate wealth in a disciplined manner over the long-term and plan a better
future for them. The mutual fund Systematic Investment Plan is similar to a Recurring
Deposit. Every month an amount you choose is invested in a mutual fund scheme of your
choice. It is just like those water droplets that add to make huge oceans.
Process of Systematic Investment Plan
A specific amount should be invested for a continuous period at regular intervals

under this plan.
SIP is similar to a regular saving scheme like a recurring deposit. It is a method of

investing a fixed sum regularly in a mutual fund.
SIP allows the investor to buy units on a given date every month. The investor
decides the amount and also the mutual fund scheme.
While the investor's investment remains the same, more number of units can be
bought in a declining market and less number of units in a rising market.
The investor automatically participates in the market swings once the option for
SIP is made.
The systematic investment plans is the best method to stay invested without bothering
too much about the market ups and downs. Ideally one should be looking at an SIP in
mutual funds (better than direct investment as one does not the fundamentals of the stock,
industry etc) and also should ensure that the frequency of the SIP is not monthly but at
least 2-4 times a month. Through regular investing, one gets to invest in the highs as well
as the lows. This helps in averaging out the market volatility especially if there is too
much volatility within the month. The investor keeps investing a certain amount (even as
small as Rs 50 in case of some mutual finds) at regular intervals. As the market soars,
even the value of the investment scales new highs. And when the market tanks, the value
of the mutual fund units the net asset value (NAV) too comes down. This means
more units are bought for the same SIP amount.
SIP has the following advantages

1. It inculcates the discipline to invest regularly
2. Generally provides good returns over longer periods of time
3. The long-term nature of the investment provides for capital gains tax on returns
made.
4. When the markets are up, it buys lesser number of units and when the markets
are down, it provides for the purchase of a larger number of units thus providing a
mechanism to constantly accumulate the units.
5. SIP avoids the risk of locking in to one single valuation and facilitates one to
get an Average of the valuations on the various dates that one invests.
2. Benefits of Systematic Investment Plan

1. Power of compounding:
The power of compounding underlines the essence of making money work if only
invested at an early age. The longer one delays in investing, the greater the financial
burden to meet desired goals. Saving a small sum of money regularly at an early age
makes money work with greater power of compounding with significant impact on
wealth accumulation.
2. Rupee cost averaging:

Timing the market consistency is a difficult task. Rupee cost averaging is an
automatic market timing mechanism that eliminates the need to time one's investments.
Here one need not worry about where share prices or interest are headed as investment of
a regular sum is done at regular intervals; with fewer units being bought in a declining
market and more units in a rising market. Although SIP does not guarantee profit, it can
go a long way in minimizing the effects of investing in volatile markets.
3.Convenience:
SIP can be operated by simply providing post dated cheques with the completed
enrolment form or give ECS instructions. The cheques can be banked on the specified
dates and the units credited into the investor's account. The SIP facility is available in the
Principal Income Fund, Monthly Income Plan, Child Benefit Fund, Balanced Fund, Index
Fund, Growth Fund, Equity fund and Tax Savings Fund.
Systematic Investment Plan features

Disciplined investing is vital to earning good returns over a longer time frame.
Investors are saved the bother of identifying the ideal entry and exit points from volatile
markets. SIP options such as equity, debt and balanced schemes offer a range of
investment plans. While there is no entry load on SIP, investors face an exit load if the
units are redeemed within a stipulated time frame. The success of your SIP hinges on the
performance of your selected scheme.
1. Transaction costs:
In any mutual fund investment, there are two kinds of transaction costs viz
entry/exit loads (for purchase or redemption of fund units) and the expense ratio (annual
cost of fund management).
Let us examine each of these in the illustration given above. Most balanced funds,
unfortunately, charge the same entry load as equity funds (2.25%).
Thus, in our numerical example, of the Rs 100 invested in the balanced fund, only
Rs 97.8 would go towards allotment of units. In our synthetic example, the entire Rs 35
would go into debt units (there being no entry load), and Rs 63.57 towards equity units.
Thus, in the synthetic case, we have escaped paying entry load on the debt part of the
investment. This difference gets magnified with time, due to compounding.
The other major cost the expense ratio is (at least currently) similar in the
balanced and synthetic fund scenario. In fact, the difference between funds of similar
category exceeds the difference between the equity and balanced categories. So, we
ignore this term in the comparison.
2. Tax implications:
There are two tax structures in mutual funds, depending on whether a fund is
classified as debt or equity. The following table summarises the currently prevailing tax
structure:
Thus, equity funds enjoy beneficial tax treatment. Here, balanced funds enjoy the
beneficial treatment of being taxed like equity funds and, in this, they clearly score over
the synthetic portfolio we had manufactured, where the debt portion would be taxed at a
higher rate.
Balanced funds have higher transaction costs, but are beneficial from a tax
perspective. Let us now examine the net impact of all these factors on returns earned by a
typical investor.
The accompanying table shows the net impact in both the balanced fund
investment and the synthetic portfolio; for the period of three years, given the equity and
debt returns as assumed above. As can be seen there, the synthetic portfolio outperforms,
but by a very small margin. For all practical purposes, a good balanced fund can easily
perform as well as a synthetically-made portfolio with similar debt to equity ratio. And
we do have such excellent balanced funds in todays mutual fund market.
As an investor, if you are saving regularly for the long term and want a low
involvement hassle free instrument, balanced funds are for you. If you otherwise have a
lot of debt investment (Bank FD, PPF, NSC, liquid funds, etc) then you might be better
off going for 100% equity oriented funds instead. In either case, you can be comfortable
in the knowledge that the benefits of one option over another are not overwhelming; and
in most cases not even significant.
SIP The Bottom line

i.
Simplicity
ii.
Hassle Free
iii.
Low acquisition costs.
iv.
Discipline Risk Factors
Please note that there is no0 guarantee that SIP will always produce a profit.
Example
Market goes down after going up-(1)
Monthly investment
1200
1200
1200
1200
1200
Total=6000
Unit Price
20
24
24
20
20
Average=21.60
Units acquired
60
50
50
60
60
280
Average cost of acquisition = 6000/280 = 21.43

I. Average unit cost =Rs.21.43
II. Average Unit Price=Rs.21.60
III. Value of investment at the end of 5 months =Rs.5600
IV. Loss is Rs.400 (would have been Rs.1000 if the investment at the peak price).
Market goes up after going up-(1)
Monthly investment
1200
1200
1200
1200
1200
Total=6000
Unit Price
24
23
22
20
24
Average=22.60
Average cost of acquisition = 6000/266 = 22.55
Units acquired
50
52
54
60
50
266

I. Average unit cost =Rs.22.55
II. Average Unit Price=Rs.22.60
III. Value of investment at the end of 5 months =Rs.5998
IV. Loss is Rs.2 (would have been Rs.1000 if the investment at the peak price).
Objectives of the Study:

o To identify the procedure involved in systematic investment plan.
o To explain the benefits of Systematic investment plan over Lump sum to the
investors
o To elucidate the benefits of rupee cost averaging concept in mutual funds

o Observing and calculating unit price fluctuations in the current market conditions
in order to evaluate growth in returns in systematic investment plan compared to
one time investment.
o To get the awareness of mutual funds.
Need for the study:
The need of the study is to gain a detailed knowledge on systematic investment

plan about investment instrument in the investment market and then to provide a
starting point to other novice investors in the process of understanding the same in
the form of a report
To gain a practical knowledge on comparative analysis of systematic plan and

lump sum
Scope of the study:

The scope of the study is confined to only ICICI Prudential Systematic
Investment Plan for a period of 5 years i.e., from 2006-2011
: Data source and methodology
Secondary data from fact sheets, brochures and e-sources was taken into
consideration to compare the Systematic investment plan with One time
Investment
Observing current market unit price fluctuations in order to obtain net asset values
at different time periods.
Study was made to explain the benefits that generated the returns through
Systematic investment plan over Lump sum in different plans of PRUICICI.
Comparing the growth on net asset values generated over different time horizons
in different investment patterns through charts and graphs
For averaging the NAV, mean is used
Limitations:
1. Study is confined to few investment options of PRUICICI mutual funds
2. The data under study is taken from past records of company hence changes at
present cannot be identified
3. The future volatile conditions of market cannot be determined
4. Mutual funds are subjected to market risks
COMPANY PROFILE
Kellton is a professionally managed organization and is fast emerging as one of the most
respected Stock Broking and Wealth Management Companies in India. The Kellton
Group is a member of the National Stock Exchange (NSE),Bombay Stock Exchange
(BSE) and the two leading Commodities Exchanges in the country MCX and NCDEX.
Kellton is also registered as a Depository Participant with CDSL.
At Kellton, we offer you Broking and Wealth Management Services of world class
standards with a personal touch. We thoroughly understand the value of relationships
with our customers as opposed to just transactions at a business level. We are dedicated to
provide services with a personal touch so that our customer gets customized solutions and
attention. It is our earnest endeavor to enhance the trading experience of our customers
through continuous improvement in our services.
MISION AND VISION
Our Mission is the foundation on which the organization is built. Our vision is our
aspiration to continually improve and grow; to become the best. Our values guide us
through our actions.
MISSION
To take financial services to the next level of personalization and customization with
emphasis on value of interactions at a more personal level than just transactions at a
business level.
VISION
To be a respected enterprise that provides best-of-breed financial solutions, with a
personal touch.
VALUES
Commitment, dedication, integrity, team work, passion and attitude are the core values
that guide us through our actions.
MANAGEMENT TEAM
NARIANJAN CHINTAM
Niranjan is a recognized leader and innovator in the area of middle market Mergers and
Acquisitions services. He has advised an array of clients on a broad spectrum of strategic

transactions, acquisitions, mergers and divestitures. His clients have included a wide
breadth of companies in mid and small cap public firms and privately owned businesses.
A financial and strategic leader with domestic and international experience. He has lived
and worked in 3 Continents and 8 Countries. He is a Serial Entrepreneur. Prior to
forming Kellton, he was the Vice President of Corporate Development and Head of
Mergers and Acquisitions Group for one of the fastest growing companies in the United
States. Niranjan brings to Kellton more than 19 years of M&A, operations, business
development, and telecommunications experience. He has held various positions
including senior positions with Concert Communication, Cincinnati Bell and SecureInfo.
Currently as President and CEO, he is advising clients in US and around the globe on
many broad based corporate finance and M&A assignments. He has managed and closed
M&A transactions in North America and Asia. Niranjan received his M.B.A from
Wharton Business School.
RAJENDRA NAIWADEKAR
Rajendra is an investment strategist with over 20 years experience in the Indian securities
market. He was the President of the Hyderabad Stock Exchange and was a member of its
Governing Board for over a decade. He played a key role during the crucial period over
which the Indian Capital Market experienced a structural change in Market Regulation
and the Trading platform changed from physical to electronic form. He is an independent
consultant to corporations on issues of valuation, capital structure and acquisitions. He
deals extensively with clients in the technology, financial and power sectors, providing
corporate finance advisory services on topics ranging from capital structure, valuation,
M&A, capital market access and corporate governance. As an advisor and/or independent
director on the Board of a few Indian companies, he plays an active role in improving the
shareholder value. He holds an MBA in Finance.
KRISHNA CHINTAM
Krishna Chintam has about 20 years of experience in Information Technology, Strategy,
Marketing, Finance, and Operational management of companies. Krishna has solid
experience in IT Product Development, IT Program Management, Consulting and
Software Application Development. He also has domain expertise in Financial, Telecom,
Federal, and Bioinformatics. Krishna led and managed worldwide IT teams comprising
several hundreds of employees, with annual revenues of over hundred million dollars.
Krishna is a serial entrepreneur and currently sits on the Boards of a number of
companies both public and private. Under his leadership the companies have grown from
locally operated organizations to worldwide organizations with operations in United

States, India, China and Latin America. His companies have been acquired by a wellreputed BSE Trading companies and by globally reputed organizations. He received his
MBA from the Kellogg School of Business, Northwestern University, Chicago. He holds
a Masters degree in Electrical Engineering from Virginia Tech, Virginia, USA; and a
Bachelors degree in Electrical and Electronics Engineering from Andhra University,
India.
JOHN LINTON
John has more than two decades of experience in corporate development and operational
management. As an entrepreneur, he owned an emerging Internet and software company.
With more than 19 years experience as a business owner and mergers and acquisitions
specialist, John knows how to structure and negotiate contracts in many markets; giving
John the ability and experience to structure deals for both public and privately held
businesses. Over the years, he has gained reputation as a top corporate and business
development consultant with numerous successful strategic partnerships, mergers and
acquisitions under his belt. John has advised clients and managed M&A transactions in
virtually every industry and has particular experience in emerging Internet, software &
high-tech start-up companies. He has himself founded and developed several profitable
Internet-based companies prior to his consulting career. Some of the companies include
iWebspawn.Inc, EZ Domain Auction and Countycorner.com.
MIHIR SHAH
Mihir Shah brings to Kellton over 20 years of experience in the financial services
industry. His expertise spans across many streams in this industry such as Merchant
Banking, Primary Market Operations, Distribution, Issue Management, Project Finance,
and Secondary Market Operations. During his two-decade career, he has created niche
markets, set up branches and played crucial roles in the growth stories of some of the
well-reputed brokerage firms in India. His current areas of focus are methodologically
optimizing returns for clients and relationship management. Financial advisory and
wealth management are his core service areas. He is an excellent team leader and
understands the dynamics behind driving a team towards success
SRINIVAS POTLURI
Srinivas Potluri has over 18 years of global experience in engineering and technology
services with a special focus on systems integration and large systems deployments. His
diverse experience includes working in the automotive, financial, healthcare,
telecommunications and commodities industries. His professional career has been

focused on working for top-tier organizations such as Parsons, Pricewaterhouse Coopers
(PwC) and France Telecom. At Parsons, Srinivas was involved in various projects for the
Department of Defense, Department of Treasury, EPA and state public departments. At
PwC, Srinivas was a management consultant focused on addressing the IT needs of
Fortune 500 clients such as GM, Keebler, Warnaco, and TetraPak. In the financial sector,
Srinivas has consulted with Citizens Bank to set up their on-line banking system. With
France Telecom, he has previously developed, managed and maintained their business
services systems and was instrumental in setting up a captive to transfer IT operations
from centers around the world to India. Srinivas received his MBA from the Kellogg
School of Management at Northwestern University. He also has a Masters degree in
Environmental Engineering from Virginia Tech and Bachelors in Environmental
Engineering from Bombay University. Prior to his appointment as COO of Bluenovo, he
was the COO of Links Group International, an IT service provider that was acquired by a
publicly traded company.
SERVICES
EQUITY
Kellton offers you a strategic, meticulous and personalized approach to maximize your
returns and reach your investment goals by trading effectively in equities. However, it
can also be a very risky proposition due to high risk-return trade off prevalent in the stock
market. Hence, it is more appropriate to take the help of an experienced and trustworthy
expert
who
will
guide
you
as
to
when,
where
and
how
to
invest.
At Kellton, we identify good opportunities to invest in and provide guidance in the

dynamic world of stock markets with suitable trading solutions and value added tools to
enhance your trading experience. Moreover our core theme of personalized services
implies that you can reach our professionals to get complete understanding of the
transactions
at
any
phase
of
the
process.
Kellton is a trading member in the NSE Derivatives segment which offers a gateway to
the exciting world of derivatives trading on Equities and Indices. The derivative market is
a highly lucrative market that gives investors, arbitrageurs and speculators immense
potential to earn returns. Over the years the Futures & Options segment has emerged as a
popular medium for trading in the financial markets.
COMMODITIES
Commodities Derivatives market has emerged as a new avenue for investors to create
wealth. Commodity derivatives that were initially developed for risk management
purposes are now growing in popularity as an investment tool. Based on the
fundamentals for demand and supply, Commodities form a separate asset class offering
investors,
arbitrageurs
and
speculators
immense
potential
to
earn
returns.
At, Kellton we understand the shifts and swings of Commodities markets and will
provide you with information about the volatility of the investible assets and when and
how to diversify them during high volatility to stabilize your returns. We closely monitor
and assess the performance of all classes of investments and will provide you with a
customized solution into the proper use of commodities within the mix of other asset
classes to maximize your returns and minimize risks.
INVESTMENT BANKING
MERGERS & ACQUISITIONS
Kelltons extensive expertise extends to a wide range of M&A transactions customized to
cater to the specific requirements of each of our client. Our relationships with many
leading financial groups enables our clients to get access to the emerging pool of private
equity financings.
SEEL-SIDE ADVISORY
As an advisor to selling stakeholders we analyze the options objectively and
dispassionately keeping in view the long term benefit to both parties. Our expertise,
experience and our network make us uniquely positioned to find an ideal partner for your
company
and
assess
the
mutual
benefits
from
this
transaction.
We perform the due diligence so as to avoid any surprises during value disclosure. Our
active involvement in deal structuring and contract negotiations would help you
understand the implications of the transaction from total perspective and be fully aware
of all legalese involved.
BUY-SIDE ADVISORY
Our extensive network comes handy in searching & selecting a wide-range of suitable
candidates. We help buyers identify the attributes of the target company including various
parameters. Upon confirmation of interest of the target company, we examine various
factors like financial data, brand image among stakeholders etc and perform a due
diligence process to showcase the potential value of the transaction, value

recommendation and comparative analysis.
CORPORATE FINANCE
We work with several companies in various stages of growth and help them to raise
private capital through Venture Capital firms, private equity companies and other
strategic
business
partners.
We assess optimal capitalization and recognize the means to increase funds. After
enlisting a group of potential target investors we position the company effectively to the
investors. We take care of the necessary communication to investors and manage due
diligence process
CAPITAL RESTRUCTURING
Capital restructuring may involve refinancing at every at every level of capital structure
which include securing asset-based loans & debt financing and achieving strategic
partnership by identifying suitable prospects.
DEBT SYNDICATION
We arrange finance from multiple banks/financial institutions to provide the borrower a
credit facility using common debt documents. We help companies to leverage on debt as
an instrument to raise capital through structured financial products for various needs.
WEALTH MANAGEMENT
Wealth Management helps you maximize your returns in asset management, investment
management and portfolio management. Developing strategies and innovative models to
build wealth from middle market business assets requires expertise and experience. Even
a seasoned investor knows that effective timing of markets is not possible and therefore
professional and expert advice is essential to generate superior returns from the market.
At Kellton we offer your client advisory services with the objectives of superior returns,
risk minimization and portfolio diversification.
DEPOSITORY SERVICES
We provide the dual benefits of trading and depository services at Kellton where you can
experience efficient, risk free depository services. Kellton is a registered Depository
participant with CDSL.
ADVANTAGES OF DEMAT ACCOUNT AT KELLTON

1. Automated pay-in facility without executing any physical instructions
2. Demat Statements on demand
3.
4.
5.
6.
7.
8.
Competitive transaction charges.

Online access to Demat Statements
Reduced paper work
Efficient pledge mechanism
Faster settlement process resulting in increased liquidity for your securities
No extra charges for Transactions and Holding Statements
Speedy disbursements of non-cash benefits (Bonus & Rights)

Managing Portfolio by Prudential KELLTON
Prudential kellton does involve a four step process of managing a portfolio of
mutual funds. These steps start with:
Setting investment goal of scheme

Identification of specific securities
Portfolio designing process
Reviewing a portfolio
Setting investment goal of scheme:
The ultimate goal of a mutual fund scheme is to serve the investor in a best
possible way. Thus to set up its investment goals mutual fund has to study its
investors. Thus, a Mutual fund has to establish goal of the scheme influenced by the
needs and taste of the investors.
Identification of specific securities:
Once the goal of a scheme is clearly spelled out, the fund manager has to
involve himself in security analysis to identify securities which can be combined to
meet the goal requirements. For each security, risk and return characteristics are
evaluated in broader perspective.
Portfolio designing
The institutional investors like mutual funds have to satisfy a variety of investors
on different fronts or grounds. So, special schemes are designed for different
requirements of different investors but sometimes in one scheme more than one type of
investors are served to their satisfaction. Accordingly investment strategies are to be

evolved by the fund mangers. So far as the broad portfolio mix is concerned the fund
manager while launching a scheme specifies it. Therefore a fund manager tries to create a
well-diversified portfolio of securities to reduce significantly unsystematic risk.
Reviewing the portfolio:
Fund manager always review portfolio and make changes as per the market
prevails. He has to follow a market trend regularly and make necessary changes
according to it. So, a fund manager has to review a portfolio in view of the investment
strategies and make necessary adjustments.
Comparative Analysis of returns in SIP over One time Investment
To analyse the returns generated through two different investment

patterns available to the investors in lieu with Prudential ICICI products a comparative
study has made.
Prudential ICICI Systematic Investment Plan (SIP) is simply what its name
suggests - a method of investing a fixed sum, regularly in any of the schemes of
Prudential ICICI Mutual Fund. In fact, it is very similar to regular saving schemes, like a
recurring deposit or a monthly deposit with the exception that your monthly contribution
is invested to buy units of the mutual fund scheme of your choice. These units get
purchased on a given date every month. By doing this , the Prudential ICICI SIP provides
you the time-tested benefit of averaging out your cost of acquiring units compared to
buying them in a lump sum. Thereby, you avoid the risk of timing the market wrongly, as
your investments are spread over time at various levels
For the comparative analysis of returns in systematic investment plan and one
time investment, assume Rs.1000 invested every month and the no of units allotted to the
investor at the current NAV for the amount invested. The growth in the net asset value
can be compared over different time horizons such as since inception, 1 st year, 2nd year,
3rd year, 4th year, 5 th years.
The pictographic representation of the values generated through line and bar
graphs gives a clear-cut insight of the benefits of SIP over lump sum investment strategy.
Net Asset value:

Net Asset Value (NAV) is calculated by subtracting liabilities from the value of a
fund's securities and other items of value and dividing this by the number of outstanding
shares. Net asset value is popularly used in newspaper mutual fund tables to designate the
price per share for the fund.
The value of a collective investment fund based on the market price of securities held in
its portfolio. Units in open ended funds are valued using this measure. Closed ended
investment trusts have a net asset value but have a separate market value. NAV per share
is calculated by dividing this figure by the number of ordinary shares. Investments trusts
can trade at net asset value or their price can be at a premium or discount to NAV.
NAV is calculated each day by taking the closing market value of all securities owned
plus all other assets such as cash, subtracting all liabilities, then dividing the result (total
net assets) by the total number of shares outstanding.
Calculating NAV
The NAV is a calculated by dividing the aggregate value of the net assets of
the
particular scheme by the number of outstanding units of such scheme.

Therefore for every NAV calculations the formula used is
(M+O) L
U
Where M = Market value of securities/investment made
O = Other assets
L = Liabilities
U = Number of units outstanding.
Calculating mutual fund net asset values is easy. Simply take the current market value of
the fund's net assets (securities held by the fund minus any liabilities) and divide by the
number of shares outstanding. So if a fund had net assets of Rs.50 lakh and there are one
lakh shares of the fund, then the price per share (or NAV) is Rs.50.00.
Mean:
The mean is the most commonly used measure of central tendency. When we talk about
an "average", we usually are referring to the mean. The mean is simply the sum of the
values divided by the total number of items in the set. The result is referred to as the
arithmetic mean. Sometimes it is useful to give more weighting to certain data points, in
which case the result is called the weighted arithmetic mean.
=
/N
where
= simple mena
= number of data points in the population
= value of each data point
The mean is valid only for interval data or ratio data. Since it uses the values of all of the
data points in the population or sample, the mean is influenced by outliers that may
be at the extremes of the data set
ICICI Prudential Child Care Plan - Study Plan

(Table: 1)
Systematic investment (1st year)
Investment Date
7/4/2006
7/5/2006
9/6/2006
7/7/2006
7/8/2006
8/9/2006
7/10/2006
7/11/2006
8/12/2006
7/1/2007
9/2/2007
7/3/2007
TOTAL
Amount Invested
(Rs)
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
Units Purchased
Net Asset Value
78.61
102.77
90.66
81.49
79.93
76.92
79.23
73.96
73.20
70.97
76.45
75.75
Average NAV
12.72
9.73
11.03
12.27
12.51
13.00
12.62
13.52
13.66
14.09
13.08
13.20
12.60
Single investment table (1st year)

Investment Date
Amount Invested
Amount (Rs)
Units Purchased
7/4/2006
12000
943.4
Net Asset Value

12.72
Systematic investment table (2nd year)

Investment Date
7/4/2007
7/5/2007
7/6/2007
7/7/2007
9/8/2007
7/9/2007
7/10/2007
8/11/2007
7/12/2007
7/1/2008
7/2/2008
Amount
Invested
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
Units Purchased
Net Asset Value
68.2
70.27
71.42
71.83
71.15
69.89
69.24
68.58
68.06
67.12
66.64
14.66
14.23
14.00
13.92
14.05
14.30
14.44
14.58
14.69
14.89
15.00
8/3/2008
Total
1000
12000
65.842
Average NAV
15.18
14.5
Single investment table (2nd year)

Date
Amount
Invested
Units Purchased
Net Asset Value
8/4/2007
12000
818.6
14.66
Systematic investment table (3rd year)

Investment Date
Amount Invested
(Rs)
7/4/2008
9/5/2008
7/6/2008
7/7/2008
8/8/2008
8/9/2008
7/10/2008
7/11/2008
7/12/2008
9/1/2009
7/2/2009
7/3/2009
Total
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
Units Purchased
Net Asset Value
59.95
66.73
65.62
65.147
63.34
61.97
60.42
60.69
59.31
57.53
57.39
56.29
Average NAV
16.4
16.68
14.98
15.23
15.35
15.78
16.13
16.55
16.47
16.86
17.38
17.42
17.76
Single investment table (3rd year)

Investment Date
Amount Invested
(Rs)
Units Purchased
Net Asset Value
7/4/2008
12000
719.40
16.68
Systematic investment table (4th year)

Investment Date
Amount Invested
(Rs)
7/4/2009
8/5/2009
7/6/2009
7/7/2009
7/8/2009
7/9/2009
9/10/2009
7/11/2009
7/12/2009
8/1/2010
7/2/2010
7/3/2010
Total
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
Units Purchased
53.95
51.54
56.66
56.29
55.93
54.65
53.73
52.50
51.65
51.26
49.88
51.27
Average NAV
Net Asset Value

18.53
19.40
17.64
17.76
17.87
18.29
18.61
19.04
19.36
19.50
20.04
19.50
18.8
Single investment table (4th year)

Investment Date
Amount Invested
(Rs)
Units Purchased
Net Asset Value
7/4/2009
12000
647.6
18.53

Investment Date
Amount Invested
(Rs)
9/4/2010
7/5/2010
7/6/2010
9/7/2010
7/8/2010
7/9/2010
8/10/2010
7/11/2010
7/12/2010
7/1/2011
7/2/2011
7/3/2011
Total
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
Units Purchased
44.03
49.57
48.82
47.88
47.82
47.49
46.60
45.98
45.34
43.40
44.35
44.98
Average NAV
Net Asset Value

22.71
20.17
20.48
20.88
20.90
21.05
21.45
21.74
22.05
23.04
22.54
22.22
21.6

Investment Date
Amount Invested
(Rs)
Units Purchased
Net Asset Value
7/4/2010
12000
528.4
22.71
Comparison of both NAV

Year
Systematic
Amount
Invested NAV
Single
Investment
Amount NAV
2006-07
2007-08
2008-09
2009-10
2010-11
12.6
14.50
16.4
18.8
21.6
12.72
14.66
16.8
18.53
22.71
Interpretation:
1. In the year 2006-07 we observe that the ICICI Prudential child care plan-study
plan investment decision is based on the parameters systematic amount invested
and single investment amount net asset value (NAV). From the above analysis it is
clear that the systematic amount invested NAV is 12.6 which is lesser than the
single investment amount NAV i.e., 12.72.It means that Systematic investment
plan has more units to buy and single investment has less units to buy
4. In the year 2009-10we observe that the ICICI Prudential child care plan-study
clear that the single investment amount NAV is 18.8 which is lesser than the
systematic amount invested t NAV i.e., 18.53.It means that Single investment
amount has more units to buy and single investment has less units to buy
5. In the year 2010-11 we observe that the Prudential child care plan-study plan
investment decision is based on the parameters systematic amount invested and
single investment amount net asset value (NAV). From the above analysis it is
single investment amount NAV i.e., 16.8.It means that Systematic investment plan
has more units to buy and single investment has less units to buy
ICICI Prudential FMCG Fund (Table: 2)

Investment
Date
Amount Invested
(Rs)
Units Purchased
Net Asset Value
7/4/2006
7/5/2006
9/6/2006
7/7/2006
7/8/2006
8/9/2006
7/10/2006
7/11/2006
8/12/2006
7/1/2007
9/2/2007
7/3/2007
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
92.08
132.27
114.02
108.81
105.59
94.78
95.60
132.80
85.32
73.20
81.96
77.63
10.86
7.56
8.77
9.19
9.47
10.55
10.46
7.53
11.72
13.66
12.2
12.88
TOTAL
12000
Average NAV
10.40

Investment
Date
Amount
Invested
Amount (Rs)
Units
Purchased
7/4/2006
12000
1104,97
Net Asset
Value
10.86

Investment Date
Amount Invested
Units Purchased
Net Asset Value
7/4/2007
7/5/2007
7/6/2007
7/7/2007
9/8/2007
7/9/2007
7/10/2007
8/11/2007
7/12/2007
7/1/2008
7/2/2008
8/3/2008
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
60.60
88.10
81.76
91.07
88.57
83.96
77.22
77.57
72.88
64.47
70.02
58.34
16.5
11.35
12.23
10.98
11.29
11.91
12.95
12.89
13.72
15.51
14.28
17.14
12000
Average NAV
12.40
Total

Date
Amount
Invested
Units
Purchased
Net Asset
Value
8/4/2007
12000
727.27
16.5

Investment Date
Amount Invested
(Rs)
Units Purchased
Net Asset Value
7/4/2008
9/5/2008
7/6/2008
7/7/2008
8/8/2008
8/9/2008
7/10/2008
7/11/2008
7/12/2008
9/1/2009
7/2/2009
7/3/2009
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
45.35
53.39
50.81
47.28
45.18
39.47
34.68
34.071
35.76
32.456
29.99
28.77
22.05
18.73
19.68
21.15
22.13
25.33
28.83
29.35
27.96
30.81
33.34
34.75
Total
12000
Average NAV
26.17

Investment Date
7/4/2008
Amount Invested
(Rs)
12000
Units Purchased
Net Asset Value
544.21
22.05

Investment Date
Amount Invested
(Rs)
Units Purchased
Net Asset Value
7/4/2009
8/5/2009
7/6/2009
7/7/2009
7/8/2009
7/9/2009
9/10/2009
7/11/2009
7/12/2009
8/1/2010
7/2/2010
7/3/2010
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
23.93
24.78
24.32
30.82
30.12
30.01
26.94
25.77
25.11
24.26
24.12
24.21
41.78
40.34
41.11
32.44
33.2
33.32
37.11
38.8
39.82
41.21
41.45
41.3
Total
12000
Average NAV
38.49

Investment
Date
Amount
Invested (Rs)
Units
Purchased
Net Asset
Value
7/4/2009
12000
287.21
41.78

Investment
Date
Amount
Invested (Rs)
Units
Purchased
Net Asset
Value
9/4/2010
7/5/2010
7/6/2010
9/7/2010
7/8/2010
7/9/2010
8/10/2010
7/11/2010
7/12/2010
7/1/2011
7/2/2011
7/3/2011
Total
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
23.78
25.26
25.56
24.18
23.28
22.73
22.22
21.84
20.77
20.06
16.78
20.27
Average NAV
42.05
39.58
39.11
41.34
42.94
43.99
45.00
45.77
48.14
49.83
59.56
49.31
45.14

Investment
Date
Amount
Invested (Rs)
Units
Purchased
Net Asset
Value
7/4/2010
12000
265.37
42.05

Year
Systematic Amount
Invested NAV
Single Investment
Amount NAV
2006-07
2007-08
2008-09
2009-10
2010-11
10.40
12.40
26.17
38.49
45.14
10.86
16.40
22.05
41.78
42.05
Interpretation:
1. In the year 2006-07 we observe that the ICICI Prudential FMCG Fund
single investment amount NAV i.e., 41.70It means that Systematic investment
ICICI Prudential Growth Plan

Growth (Table: 3)
Investment
Date
Amount Invested
(Rs)
Units Purchased
Net Asset Value
7/4/2006
7/5/2006
9/6/2006
7/7/2006
7/8/2006
8/9/2006
7/10/2006
7/11/2006
8/12/2006
7/1/2007
9/2/2007
7/3/2007
TOTAL
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
51.97
52.43
47.89
43.29
41.33
35.88
33.67
31.06
29.71
25.70
25.62
25.27
Average NAV
19.24
19.07
20.88
23.1
24.19
27.87
29.7
32.19
33.65
38.9
39.02
39.56
28.94

Investment Date
Amount Invested
Amount (Rs)
Units Purchased
7/4/2006
12000
623.70
Net Asset Value

19.24

Investment Date
Amount Invested
Units Purchased
Net Asset Value
7/4/2007
7/5/2007
7/6/2007
7/7/2007
9/8/2007
7/9/2007
7/10/2007
8/11/2007
7/12/2007
7/1/2008
7/2/2008
8/3/2008
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
26.61
26.83
32.12
32.16
30.23
29.24
27.21
26.48
24.93
23.62
23.20
21.41
Average NAV
37.58
37.26
31.13
31.09
33.08
34.2
36.74
37.76
40.11
42.33
43.09
46.69
37.58
Total
Date
8/4/2007

Amount Invested Units Purchased
12000
319.31
Net Asset Value

37.58

Amount Invested
Investment Date
(Rs)
Units Purchased Net Asset Value
7/4/2008
9/5/2008
7/6/2008
7/7/2008
8/8/2008
8/9/2008
7/10/2008
7/11/2008
7/12/2008
9/1/2009
7/2/2009
7/3/2009
Total
Investment Date
7/4/2008
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
22.44
22.89
21.60
20.79
18.94
17.74
17.11
17.72
16.09
14.79
13.94
13.12
Average NAV
Single investment table (3rdt year)

Amount Invested
(Rs)
Units Purchased
12000
269.36
44.55
43.68
46.29
48.08
52.78
56.36
58.42
56.42
62.14
67.58
71.7
76.19
57.01
Net Asset Value

44.55

Amount Invested
Investment Date
(Rs)
7/4/2009
8/5/2009
7/6/2009
7/7/2009
7/8/2009
7/9/2009
9/10/2009
7/11/2009
7/12/2009
8/1/2010
7/2/2010
7/3/2010
Total
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
11.90
11.12
14.65
13.84
13.49
12.18
11.78
11.11
10.58
10.84
10.21
11.85
Average NAV
83.97
89.92
68.24
72.25
74.09
82.06
84.84
89.97
94.47
92.25
97.86
84.33
84.52

Investment Date
Amount Invested
(Rs)
Units Purchased
Net Asset Value
7/4/2009
12000
142.90
83.97
Investment Date
Amount Invested
(Rs)
Units Purchased
Net Asset Value
9/4/2010
7/5/2010
7/6/2010
9/7/2010
7/8/2010
7/9/2010
8/10/2010
7/11/2010
7/12/2010
7/1/2011
7/2/2011
7/3/2011
Total
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
9.86
11.35
10.74
10.36
10.17
10.44
10.19
9.74
8.89
9.45
8.77
8.90
AVERAGE NAV
101.33
88.05
93.05
96.45
98.3
95.7
98.05
102.63
112.38
105.82
113.93
112.28
101.49

Investment Date
Amount Invested
(Rs)
Units Purchased
Net Asset Value
7/4/2010
12000
118.42
101.33

Year
Systematic
Amount
Invested NAV
Single
Investment
Amount NAV
2006-07
2007-08
2008-09
2009-10
2010-11
28.94
37.58
57.01
84.52
101.49
19.24
37.58
44.55
83.97
101.33
Interpretation
1. In the year 2006-07we observe that the ICICI PRUDENTIAL GROWTH PLAN GROWTH investment decision is based on the parameters systematic amount
invested and single investment amount net asset value (NAV). From the above
analysis it is clear that the single investment amount NAV is 19.24 which is lesser
than the systematic amount invested t NAV i.e., 28.94.It means that Single
investment amount has more units to buy and single investment has less units to
buy
2. In the year 2007-08we observe that the ICICI Prudential growth plan growth
clear that the single investment amount NAV is 37.58 and which is equal to the
amount and single investment has equal units to buy
3. In the year 2008-09 we observe that the ICICI Prudential growth plan growth
systematic amount invested t NAV i.e., 57.01It means that Single investment
single investment amount net asset value (NAV).
ICICI PRUDENTIAL MIP Cumulative (Table: 4)

Investment Date
Amount
Invested (Rs)
Units Purchased
Net Asset Value
7/4/2006
7/5/2006
9/6/2006
7/7/2006
7/8/2006
8/9/2006
7/10/2006
7/11/2006
8/12/2006
7/1/2007
9/2/2007
7/3/2007
TOTAL
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
77.91
77.45
76.19
75.35
74.27
72.53
71.39
70.65
70.19
68.67
69.01
69.01
Average NAV
13.84
12.91
13.12
13.27
13.46
13.78
14.00
14.15
14.24
14.56
14.49
14.49
13.9

Investment Date
Amount Invested
Amount (Rs)
Units Purchased
7/4/2006
12000
866.74
Net Asset Value

13.84

Investment Date
7/4/2007
7/5/2007
7/6/2007
7/7/2007
9/8/2007
7/9/2007
7/10/2007
8/11/2007
7/12/2007
7/1/2008
7/2/2008
8/3/2008
Total
Amount
Invested
Units Purchased
Net Asset Value
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
68.74
68.46
69.38
69.21
68.84
68.05
67.33
67.26
66.29
65.76
65.12
64.36
Average NAV
15.48
14.60
14.41
14.44
14.52
14.69
14.85
14.86
15.08
15.20
15.35
15.53
14.9
Date
8/4/2007

Amount Invested Units Purchased
12000
775.19
Net Asset Value

15.48

Amount
Investment Date
Invested (Rs)
7/4/2008
9/5/2008
7/6/2008
7/7/2008
8/8/2008
8/9/2008
7/10/2008
7/11/2008
7/12/2008
9/1/2009
7/2/2009
7/3/2009
Total
Investment Date
7/4/2007
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
64.4
64.13
63.42
63.02
61.77
60.66
60.47
60.82
59.98
58.59
58.01
57.36
Average NAV

Amount Invested
(Rs)
Units Purchased
12000
726.39

Amount Invested
Investment Date
(Rs)
Units Purchased
07/04/2009
08/05/2009
07/062009
07/07/2009
07/08/2009
07/09/2009
09/10/2009
07/11/2009
07/12/2009
08/01/2010
07/02/2010
07/03/2010
Total
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
56.13
54.96
57.31
56.73
56.52
55.16
54.47
53.59
52.77
52.68
52.23
53.37
Average NAV
16.52
15.07
15.76
15.86
16.19
16.48
16.53
16.44
16.67
17.06
17.23
17.43
16.4
Net Asset Value

16.52
Net Asset Value

18.84
18.194
17.45
17.628
17.694
18.13
18.36
18.659
18.951
18.982
19.147
18.737
18.4

Investment Date
Amount Invested
(Rs)
Units Purchased
Net Asset Value
7/4/2009
12000
636.94
18.84

Investment Date
Amount
Invested (Rs)
Units Purchased
Net Asset Value
9/4/2010
7/5/2010
7/6/2010
9/7/2010
7/8/2010
7/9/2010
8/10/2010
7/11/2010
7/12/2010
7/1/2011
7/2/2011
7/3/2011
Total
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
52.93
52.35
51.9
51.09
50.61
50.45
49.66
48.44
47.47
46.12
47.26
48.46
Average NAV
19.92
19.10
19.26
18.44
19.75
18.82
19.94
20.64
20.83
20.92
20.98
20.63
19.9

Investment Date
Amount
Invested (Rs)
Units Purchased
Net Asset Value
7/4/2010
12000
602.41
19.92

Year
Systematic
Amount
Invested NAV
Single
Investment
Amount NAV
2006-07
2007-08
2008-09
2007-10
2010-11
13.9
14.9
16.4
18.4
19.9
13.84
15.48
16.52
18.84
19.92
Interpretation
1. In the year 2006-07 we observe that the ICICI Prudential MIP - Cumulative
5. In the year 2010-11we observe that the ICICI Prudential MIP - Cumulative
ICICI Prudential Technology Fund Growth

(Table:5)
Investment Date
7/4/2006
7/5/2006
9/6/2006
7/7/2006
7/8/2006
8/9/2006
7/10/2006
7/11/2006
8/12/2006
7/1/2007
9/2/2007
7/3/2007
TOTAL
Investment Date
7/4/2006

Amount
Units Purchased
Invested (Rs)
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
230.41
320.51
374.53
343.64
303.03
279.32
257.73
248.75
242.71
180.180
187.61
131.23
Average NAV

Amount Invested
Amount (Rs)
Units Purchased
12000
4181.18
Net Asset Value

4.34
3.12
2.67
2.91
3.3
3.58
3.88
4.02
4.12
5.55
5.33
7.62
4.2
Net Asset Value

4.34

Amount
Investment Date
Invested
7/4/2007
7/5/2007
7/6/2007
7/7/2007
9/8/2007
7/9/2007
7/10/2007
8/11/2007
7/12/2007
7/1/2008
7/2/2008
8/3/2008
Total
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
149.70
198.80
206.61
206.61
187.96
173.91
169.49
164.74
158.47
154.79
150.15
124.37
Average NAV
6.68
5.03
4.84
4.84
5.32
5.75
5.9
6.07
6.31
6.46
6.66
8.04
5.99

Date
Amount Invested
Units Purchased
Net Asset Value
8/4/2007
12000
1796.41
6.68

Amount
Investment Date
Invested (Rs)
7/4/2008
9/5/2008
7/6/2008
7/7/2008
8/8/2008
8/9/2008
7/10/2008
7/11/2008
7/12/2008
9/1/2009
7/2/2009
7/3/2009
Total
Investment Date
7/4/2008
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
113.89
143.47
135.86
128.53
119.61
108.93
111.48
115.60
126.90
112.86
110.86
94.42
Average NAV

Amount Invested
(Rs)
Units Purchased
12000
1366.74

Amount Invested
Investment Date
(Rs)
Units Purchased
07/04/2009
08/05/2009
07/06/2009
07/07/2009
07/08/2009
07/09/2009
09/10/2009
07/11/2009
07/12/2009
08/01/2010
07/02/2010
07/03/2010
Total
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
79.05
81.96
118.62
104.16
100.70
90.82
89.04
79.11
90.57
74.34
68.96
69.15
Average
8.78
6.97
7.36
7.78
8.36
9.18
8.97
8.65
7.88
8.86
9.02
10.6
8.53
Net Asset Value

8.78
Net Asset Value

12.7
12.2
8.43
9.6
9.93
11
11.2
12.6
11
13.5
14.5
14.5
11.8

Investment Date
Amount Invested
(Rs)
Units Purchased
Net Asset Value
7/4/2009
12000
948.61
12.7

Investment Date
Amount
Units Purchased
Net Asset Value
Invested (Rs)
9/4/2010
7/5/2010
7/6/2010
9/7/2010
7/8/2010
7/9/2010
8/10/2010
7/11/2010
7/12/2010
7/1/2011
7/2/2011
7/3/2011
Total
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
63.01
69.34
64.35
58.85
63.49
62.89
69.15
72.56
65.06
55.55
68.30
70.17
Average NAV
15.9
14.4
15.5
17
15.8
15.9
14.5
13.8
15.4
18
14.6
14.3
15.4

Investment Date
Amount Invested
(Rs)
Units Purchased
Net Asset Value
7/4/2010
12000
756.14
15.9

Year
Systematic
Amount
Invested NAV
Single
Investment
Amount NAV
2006-07
2007-08
2008-09
2009-10
2010-11
4.2
5.99
8.53
11.8
15.4
4.34
6.68
8.78
12.7
15.9
Interpretation:
1. In the year 2006-07 we observe that the ICICI Technology Fund - Growth
2. In the year 2007-08we observe that the
ICICI Technology Fund - Growth

5. In the year 2010-11we observe that the ICICI Technology Fund - Growth
ICICI Prudential Tax Plan Growth (Table: 6)

Investment Date
Amount
Invested (Rs)
7/4/2006
7/5/2006
9/6/2006
7/7/2006
7/8/2006
8/9/2006
7/10/2006
7/11/2006
8/12/2006
7/1/2007
9/2/2007
7/3/2007
TOTAL
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
Units Purchased
Net Asset Value
43.21
48.40
53.33
60.45
70.17
45.06
41.85
39.95
35.80
36.17
36.46
39.32
Average NAV
23.14
20.66
18.75
16.54
14.25
22.19
23.89
25.03
27.93
27.64
27.42
25.43
22.7

Investment Date
Amount Invested
Amount (Rs)
Units Purchased
7/4/2006
12000
518.33
Net Asset Value

23.14

Investment Date
7/4/2007
7/5/2007
7/6/2007
7/7/2007
9/8/2007
7/9/2007
7/10/2007
8/11/2007
7/12/2007
7/1/2008
7/2/2008
8/3/2008
Total
Amount
Invested
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
Units Purchased
Net Asset Value
29.93
34.41
40.74
38.74
34.30
32.49
32.39
30.68
25.23
25.87
25.86
24.26
Average NAV
33.41
29.06
24.54
25.81
29.15
30.78
30.87
32.59
39.63
38.65
38.66
41.22
32.9

Date
Amount Invested
Units Purchased
Net Asset Value
8/4/2007
12000
359.17
33.41

Investment Date
Amount
Invested (Rs)
7/4/2008
9/5/2008
7/6/2008
7/7/2008
8/8/2008
8/9/2008
7/10/2008
7/11/2008
7/12/2008
9/1/2009
7/2/2009
7/3/2009
Total
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
Units Purchased
Net Asset Value
16.93
20.50
18.66
18.37
23.11
14.61
18.29
17.83
15.96
15.00
15.21
13.57
Average NAV
59.06
48.76
53.57
54.41
43.26
68.43
54.65
56.07
62.65
66.64
65.74
73.65
58.9

Investment Date
Amount Invested
(Rs)
Units Purchased
Net Asset Value
7/4/2008
12000
203.18
59.06

Investment Date
Amount Invested
(Rs)
07/04/2009
08/05/2009
06/06/2009
07/07/2009
07/08/2009
07/09/2009
09/10/2009
07/11/2009
07/12/2009
08/01/2010
07/02/2010
07/03/2010
Total
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
Units Purchased
10.72
9.92
14.21
13.68
13.25
11.38
10.94
10.69
10.84
10.48
11.90
12.48
Average NAV
Net Asset Value

93.24
100.8
70.35
73.09
75.47
87.81
91.39
93.47
92.21
95.39
84.02
80.08
86.4

Investment Date
Amount Invested
(Rs)
Units Purchased
Net Asset Value
7/4/2009
12000
128.7
93.24

Investment Date
Amount
Invested (Rs)
9/4/2010
7/5/2010
7/6/2010
9/7/2010
7/8/2010
7/9/2010
8/10/2010
7/11/2010
7/12/2010
7/1/2011
7/2/2011
7/3/2011
Total
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
1000
12000
Units Purchased
Net Asset Value
9.74
12.21
11.00
11.76
10.76
10.40
10.00
10.19
9.77
9.36
9.38
9.75
Average NAV
102.7
81.87
90.86
85.02
92.93
96.09
99.92
98.07
102.3
106.8
106.5
102.5
97.1

Investment Date
Amount Invested
(Rs)
Units Purchased
Net Asset Value
7/4/2010
12000
116.90
102.7

Year
Systematic
Amount
Invested NAV
Single
Investment
Amount NAV
2006-07
2007-08
2008-09
2009-10
2010-11
22.7
32.9
58.90
86.4
97.1
23.14
33.41
59.06
93.24
102.7
Interpretation:
1. In the year 2006-07 we observe that the ICICI Tax Plan-Growth investment
decision is based on the parameters systematic amount invested and single
investment amount net asset value (NAV). From the above analysis it is clear that
the systematic amount invested NAV is 22.7 which is lesser than the single
investment amount NAV i.e., 23.14.It means that Systematic investment plan has
more units to buy and single investment has less units to buy
3. In the year 2008-09 we observe that the ICICI Tax Plan-Growth investment is
based on the parameters systematic amount invested and single investment
amount net asset value (NAV). From the above analysis it is clear that the
systematic amount invested NAV is 58.90 which is lesser than the single
4. In the year 2009-10we observe that the ICICI Tax Plan-Growth investment
investment amount NAV i.e., 102.1 .It means that Systematic investment plan has
Conclusions:
1.
Mutual funds are becoming one of the foremost Investment avenues available to
the investors as it is structured as per the investors horizon and risk appetite.
2. This study helps to understand the Systematic Investment Pattern and its
advantages over Lump sum investment that are available to the investors.
3. The systematic investment plan is suggestible for the employees and the investors
with. Because limited funds investment decision are take correctly with diverting
their funds in a systematic way.
4. The benefit of rupee cost averaging helps the investors in compensating the losses
as well as appreciating the asset values over a certain period of time.
5. The investments in mutual funds are completely subjected to market risks hence
the investor must have a close watch on the different forces acting upon and
choose the proper scheme and make investment at appropriate time in order to
acquire desirable returns.
Suggestions:
1. Digital marketing: E-commerce is gradually showing signs of gaining acceptance
and electronic sale of financial products is especially gaining volumes.
2. As Indian markets mature, regulatory restrictions are becoming easy paving the
way for introduction of innumerable specialized products hitherto not introduced
in India such as hedge funds and derivative-based products.
3. The government and companies should take more plans such that every one
should be involve in the investment like systematic plans .There should be more
innovative plans for developing the Investment market in India.
4. As the market is globalised the government needs to inform the international
market situation to companys and investors.
5.
There is a need for improvement in financial services to tap the market especially
in the rural areas.
BIBLIOGRAPHY
References:
1. Study materials provided by Kellton Financial Services
2. Brochures
3. Application forms
4. Promotional Materials
5. Various books :a. Investments how to win by Prasanna Chandra
b. Portfolio Management by James L. Farell Fr.
c. How Mutual Funds Work -- by Albert J. Fredman, Russ Wiles
d. Mutual funds management and Working by Lalit.K.Bansal
INTERNET (Hyperlinks):
I. www.kellton.com
II. www.valueresearch.com
III. www.mutualfundsindia.com
IV. www.forbes.com/funds
V. www.investorword.com

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Project Report On Mutual Funds

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Introduction to Systematic Investment Plan (SIP)

Investing successfully in equity market demands a great deal of knowledge about

Though still at a blossoming stage, Indian MF industry offers a plethora of schemes

Threats, Risks & Concerns

Theoretical Framework of Systematic Investment Plan

Systematic Investment Plan is the most effective way of investing in market

Process of Systematic Investment Plan

A specific amount should be invested for a continuous period at regular intervals

SIP is similar to a regular saving scheme like a recurring deposit. It is a method of

SIP has the following advantages

2. Benefits of Systematic Investment Plan

2. Rupee cost averaging:

Systematic Investment Plan features

SIP The Bottom line

Low acquisition costs.

Discipline Risk Factors

Average cost of acquisition = 6000/280 = 21.43

Average cost of acquisition = 6000/266 = 22.55

Market goes down after going up-(2)

Objectives of the Study:

o To elucidate the benefits of rupee cost averaging concept in mutual funds

Need for the study:

The need of the study is to gain a detailed knowledge on systematic investment

To gain a practical knowledge on comparative analysis of systematic plan and

Scope of the study:

: Data source and methodology

For averaging the NAV, mean is used

Acquisitions services. He has advised an array of clients on a broad spectrum of strategic

locally operated organizations to worldwide organizations with operations in United

telecommunications and commodities industries. His professional career has been

At Kellton, we identify good opportunities to invest in and provide guidance in the

diligence process to showcase the potential value of the transaction, value

ADVANTAGES OF DEMAT ACCOUNT AT KELLTON

Competitive transaction charges.

Speedy disbursements of non-cash benefits (Bonus & Rights)

Setting investment goal of scheme

investors are served to their satisfaction. Accordingly investment strategies are to be

Comparative Analysis of returns in SIP over One time Investment

To analyse the returns generated through two different investment

Net Asset value:

particular scheme by the number of outstanding units of such scheme.

ICICI Prudential Child Care Plan - Study Plan

Net Asset Value

Single investment table (1st year)

Net Asset Value

Systematic investment table (2nd year)

Net Asset Value

Single investment table (2nd year)

Net Asset Value

Systematic investment table (3rd year)

Net Asset Value

Single investment table (3rd year)

Net Asset Value

Systematic investment table (4th year)

Net Asset Value

Single investment table (4th year)

Net Asset Value

Systematic investment table (5th year)

Net Asset Value

Single investment table (5th year)

Net Asset Value

Comparison of both NAV

ICICI Prudential FMCG Fund (Table: 2)