HIGH PERFORMANCE FUND

DATE: 08-10-2010

Submitted to: Prof. Akshay Damani

Author
ASHISH KOTHARI (ROLL NO-25)
SUDHAKAR YADAV (ROLL NO-60)
INTRODUCTION
Portfolio management is the on-going process of
constructing portfolios that balance an investor's ever
changing goals with the portfolio manager's assumptions
about the future.
Within the framework established by the investor’s
investment policy, a strategy will be adopted that ensures
that the investor’s long-term objective(s) will be attained.
Often, the specific tactics that the portfolio manager
might employ are also specified.
The portfolio is then monitored so that the strategy
and tactics can be adjusted to accommodate the
outcomes realized and changes in the investor's
objectives.

Additionally, certain assumptions have been made

while devising the portfolio stated below

• DOMESTIC MARKETS
The asset class which is considered is Equity
market by investing in different growing sectors.

• GLOBAL MARKETS
The lists of asset classes selected are bonds,
equity, commodity and hedge fund.

The portfolio has been compared to the s& p 500 index as

the benchmark based on the assets within the fund.The
fund details are discussed below

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 2

FUND DETAILS

NAME OF FUND: HIGH PERFORMANCE FUND

INVESTMENT POLICY
The following Investment policy is laid down for the
fund.

OBJECTIVE OF FUND
Helps investors to grow their capital through enhanced
returns over a long term period through investments in
equity instruments in various diversified sectors ther by
providing a good balance between risk and return.
• To minimize the risk & to maximize the investor’s
wealth through adequate research and proper
investment studies.
• To invest in diversifying sectors to avoid risk due to
impact on one particular sector
• To achieve long term returns
• To secure investors future( marriage,childs
education,childs marriage etc)
• Aim to achieve growth in the Net asset values (NAV)
and to sustain it subject to market risks.
• Achieve a return greater than the NIFTY returns & in
case of global s& p 500 index.

TARGET CUSTOMER
• Type- Risk Taker
• Age-18 to 30 years
• Income group- Higher middle income class

TYPE OF FUND
• DOMESTIC MARKET-EQUITY SCHEMES

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 3

 • GLOBAL MARKETS –BALANCED FUNDS
The fund aims to invest in asset classes (diversifying
sectors) which will give sustained returns with reduced
risks to enhance the NAV of the fund.

INVESTMENT STRATEGY
To earn capital appreciation by maintaining
diversified equity portfolio by active management
resulting in wealth creation of policy holders.Our
investment strategy is based on economic indicators of
India & World markets such as GDP,Inflation,monetary
policies,etc.
Based on these economic factors NIFTY has shown a
record of giving 18% in past 30 years including scams of
Harshad Mehta and Satyam.
Inflation is expected to be on an average 5 % ,10 years
down the line in INDIA.

LIST OF ASSETS/ASSETS CLASS & JUSTIFICATION OF

SELECTION
ASSET ALLOCATION:
• EQUITY 100%
• RISK RETURN PROFILE:
• RISK -HIGH
• RETURN- HIGH

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 4

DOMESTIC MARKETS
For Domestic markets asset allocation is based
investment in diversified and growing sectors.
We have selected the banking sectors which is
growing at high rate and also diversified the portfolio with
some pharma companies.
The banking index has grown at a compounded
annual rate of 27 per cent since last five years whereas
the pharma sector has given a growth of 16 per cent.

Sector Company
BANKING DENA BANK
BANKING BAJAJ AUTO
FINANCE
AUTOMOBILE EICHER
INDUSTRY MOTORS
SPECTRA
INDIA
PHARMA AVENTIS
PHARMA JYOTI LAB

BANKING INDUSTRY
The growth in the Indian Banking Industry has been
more qualitative than quantitative and it is expected to
remain the same in the coming years. Based on the
projections made in the "India Vision 2020" prepared by
the Planning Commission and the Draft 10th Plan, the

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 5

report forecasts that the pace of expansion in the
balance-sheets of banks is likely to decelerate.
The total assets of all scheduled commercial banks
by end-March 2010 is estimated at Rs 40,90,000 crores.
That will comprise about 65 per cent of GDP at current
market prices as compared to 67 per cent in 2002-03.
Bank assets are expected to grow at an annual composite
rate of 13.4 per cent during the rest of the decade as
against the growth rate of 16.7 per cent that existed
between 1994-95 and 2002-03. It is expected that there
will be large additions to the capital base and reserves on
the liability side.
DENA BANK
Dena Bank was founded o n 26th May, 1938 by the
family of Devkaran Nanjeeunder the name Devkaran
Nanjee Banking Company Ltd. It became a Public Ltd.
Company in December 1939 and later the name was
changed to Dena Bank Ltd.
In July 1969 Dena Bank Ltd. along with 13 other
major banks was nationalized and is now a Public Sector
Bank constituted under the Banking Companies
(Acquisition & Transfer of Undertakings) Act, 1970. Under
the provisions of the Banking Regulations Act 1949, in
addition to the business of banking, the Bank can
undertake other business as specified in Section 6 of the
Banking Regulations Act, 1949.

Milestones
• One among six Public Sector Banks selected by the
World Bank for sanctioning a loan of Rs.72.3 crores
for augmentation of Tier-II Capital under Financial
Sector Developmental project in the year 1995.
• One among the few Banks to receive the World Bank
loan for technological upgradation and training.
HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 6
 • Launched a Bond Issue of Rs.92.13 crores in
November 1996.
• Maiden Public Issue of Rs.180 Crores in November
1996.
• Introduced Tele banking facility of selected
metropolitan centers.

BAJA AUTO FINANCE LIMITED

Baja Auto Finance Limited (BAFL) is a diversified non-
banking finance company. It is engaged in the business of
financing. The products of the Company include
consumer durable loans, small business loan, personal
loan, loan against property, loan against securities,
construction equipment finance, two wheeler loan and
insurance services. BAFL offers consumer durable loans,
personal loans, loan against property, small business
loans, construction equipment loans, loan against
securities and insurance services under the name of Bajaj
Finserv Lending. As of March 31, 2010, the Company is
present in 375 dealerships, and accesses over 900 sub-
dealers across India.
The group's flagship company, Bajaj Auto, is ranked
as the world's fourth largest two- and three- wheeler
manufacturer and the Bajaj brand is well-known across
several countries in Latin America, Africa, Middle East,
South and South East Asia.
Bajaj Auto Finance (BAFL), incorporated in 1987, is
engaged in business of retail financing. Earlier BAFL was
promoted by Bajaj Auto and Bajaj Auto Holdings. Bajaj
Auto is the second largest manufacturer of two- and
three-wheelers in the India. Bajaj Auto Holdings is an
investment company.
AUTO INDUSTRY

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 Since the first car rolled out on the streets of Mumbai
(then Bombay) in 1898, the Automobile Industry of India
has come a long way. During its early stages the auto
industry was overlooked by the then Government and the
policies were also not favorable. The liberalization policy
and various tax reliefs by the Govt. of India in recent
years has made remarkable impacts on Indian
Automobile Industry. Indian auto industry, which is
currently growing at the pace of around 18 % per annum,
has become a hot destination for global auto players like
Volvo, General Motors and Ford. A well developed
transportation system plays a key role in the
development of an economy, and India is no exception to
it. With the growth of transportation system the
Automotive Industry of India is also growing at rapid
speed, occupying an important place on the 'canvas' of
Indian economy.

EICHER MOTORS
Eicher began its business operations in 1959 with the
roll out of India’s first tractor. Today the Eicher Group is a
significant player in the Indian automobile industry with a
gross sales turnover of over INR 19,000 million (424 USD
Mn) in the year 2005-06.
The Eicher Group has diversified business interests in
design & development, manufacturing and local/
international marketing of Trucks & Buses, Motorcycles,
Automotive Gears and components.In addition to this,
Eicher has also invested in the potential growth areas
of Customised Engineering Solutions, City Map & Travel
Guides. The activities of the Group are divided into the
following business units covering all the business
interests.
PHARMA INDUSTRY
HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 8
 The pharmaceutical industry in India is among the
most highly organized sectors. This industry plays an
important role in promoting and sustaining development
in the field of global medicine. Due to the presence of low
cost manufacturing facilities, educated and skilled
manpower and cheap labor force among others, the
industry is set to scale new heights in the fields of
production, development, manufacturing and research. In
2008, the domestic pharma market in India was expected
to be US$ 10.76 billion and this is likely to increase at a
compound annual growth rate of 9.9 per cent until 2010
and subsequently at 9.5 per cent till the year 2015.

• The pharma industry generally grows at about 1.5-

1.6 times the Gross Domestic Product growth
• Globally, India ranks third in terms of
manufacturing pharma products by volume
• The Indian pharmaceutical industry is expected to
grow at a rate of 9.9 % till 2010 and after that 9.5 %
till 2015
• In 2007-08, India exported drugs worth US$7.2
billion in to the US and Europe followed by Central
and Eastern Europe, Africa and Latin America
• The Indian vaccine market which was worth
US$665 million in 2007-08 is growing at a rate of
more than 20%
• The retail pharmaceutical market in India is
expected to cross US$ 12-13 billion by 2012
• The Indian drug and pharmaceuticals segment
received foreign direct investment to the tune of US$
1.43 billion from April 2000 to December 2008

AVENTIS

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 Aventis Pharma or Aventis Pharma Limited is the
Indian arm of the recently merged pharmaceutical
companies Sanofi and Aventis. This France-based private
pharmaceutical giant is having presence across all the
continents of the world. Aventis Pharma's parent
company Sanofi Aventis operates its Indian arm from
Mumbai, India. Aventis Pharma is one of the most
respected innovations and generic based
pharmaceuticals manufacturing company of the world.
Aventis Pharma parent company - Sanofi Aventis have
presence in more than 95 countries across the world. Its
state-of -the-art manufacturing facilities across the world
are well equipped for the development of new molecules
across all therapeutic verticals. Its manufacturing units
are quality-certified and strictly adhere to WHO-GMP
guidelines. Sanofi Aventis owns a number of innovations
to its credit. All of these innovations are protected across
the world through patents. Aventis Pharma has registered
total sales of Rs 2265 million for the year ended 31st
March 2007. Aventis Pharma has posted Net Profit to the
tune of Rs. 433 million for the year ended 31st March
2007.

JYOTHY LABORATORIES LTD

Jyothy Laboratories Ltd (JLL) was set up in 1983 by
Mr. M.P. Ramachandran, who has 37 years of experience
in production, sales and management. From being a
single brand company that commenced with Ujala Fabric
Whitener as the flagship product, JLL has grown by
diversifying. It has not just diversified its geographies
across various states in India capturing incremental
market share, but also diversified its product portfolio.
The brand equity of Ujala have been extended to Ujala
HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 10
detergent and Stiff & Shine comprising 46% turnover
(T/O). The company's mosquito repellant, Maxo(31% of
T/O) and surface cleaner Exo(16% of T/O) command a
significant market share and are expected to grow
further.
JLL also distributes incense sticks & soaps under the
Brand names Jeeva & Maya (7% of T/O).The latest foray
into fabric care services sector through organized laundry
also holds out good potential. The company has
diversified into different segments very rapidly and has
not only shown topline growth but also improving
profitability. Homecare has increased its profitability by
290 bps in FY10 Ujala is the market leader in the segment
with 72% market share by value, while the 2nd largest
competitor (Robin Blue) holds only 3.5% of the market
share and the rest 24.5% is divided amongst 250
unorganized players. If we include market shares of 'More
light' and 'Ruby Blue' (acquisitions made in 2007), then
the total goes up to 77%. Ujala has 99.99% market share
in Kerala, 94.5% in West Bengal and 93.5% in Delhi and
Punjab region

ASSET ALLOCATION PROCESS IS SAME FOR DOMESTIC AS

WELL AS GLOBAL MARKETS
According to Markowitz (1952) the process of selecting
a portfolio involves two stages, namely observation and

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 11

experience to start with, and ends with beliefs about
future performances of available securities.
• Based on investors need of getting optimum returns,
we have allocated assets into various growing
sectors

GLOBAL MARKETS

BOND GOLDMAN SACHS

EMERGING MARKET
DEBT A (GSDAX)
EQUITY MEXICO IPC
HEDGE FUNDS Dow Jones Credit
Suisse Hedge Fund
Index Equity Market
Neutral

COMMODITY CBOE GOLD INDEX

• We have selected last 6 years data & have calculated

the average mean & standard deviation, correlation ,
covariance.
st
• First we have calculated returns from 1 April 2004 to
31st March 2009
Returns=(P1-P0)/P0
• Then we have calculated Average returns and
standard deviation
Average returns =Average (range of data)
Average std = STDEVA(same range of data
as for Average)
• Then we have annualised mean and standard
deviation.
Annual return= ((1+mean)^12)-1
HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 12
 Annual Standard deviation= (S.D)*(12^0.5)
• Then we calculated Correlation and Covariance to
see the relation between diversified sector and risk
inherent in it.
Correlation =CORREL (range1, range2)
Covariance =Correlation*std1*std2
• Then we calculated bordered covariance
Bordered covariance = ∑w1x r1 +w2x r2 +……. w n x
rn
• Then we have calculated portfolio mean

GLOBAL INDEX

MEXICO IPC
Mexico has a single securities market, the Mexican
Stock Exchange (Bolsa Mexicana de Valores, known as
the Bolsa). The market has grown steadily, with its main
indices increasing by more than 150% in 2003–05. It is
Latin America's second largest exchange, after Brazil's.
Still, the Bolsa remains relatively small when compared to
other North American exchanges. The New York Stock
Exchange is about 100 times larger; the Toronto Stock
Exchange is six times larger.
The Indice de Precios y Cotizaciones (IPC, the general
equities index) is the benchmark stock index on the
Bolsa. In 2005 the IPC surged 37.8%, to 17,802.71 from
12,917.88, backed by a stronger Mexican economy and
lower interest rates. It continued its steep rise through
the beginning of 2006, reaching 19,272.63 points at end-
March 2006. The stockmarket also posted a record low
vacancy rate, according to the central bank. Local
stockmarket capitalisation totalled US$236bn at end-
2005, up from US$170bn at end-2004. As of March 2006
HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 13
there were 135 listed companies, down from 153 a year
earlier. Only a handful of the listed companies are
foreign. Most are from Mexico City or Monterrey;
companies from these two cities compose 67% of the
total listed companies.

THE DOW JONES CREDIT SUISSE HEDGE FUND INDEX

The Broad Index is constructed using the Credit
Suisse database of more than 8,000 hedge funds. It
includes both open and closed funds located in the U.S.
and offshore, but does not include fund of funds. In order
to qualify for inclusion in the index selection universe, a
fund must have a minimum of USD 50 million under
management, a 12-month track record, and audited
financial statements. Index funds are selected using a
formula based on assets under management, which
ensures that the Index represents at least 85% of total
assets in each of ten strategy-based sectors in the
selection universe. In order to minimize survivorship bias,
funds are not excluded until they liquidate or fail to meet
the reporting requirements. The Broad Index is
calculated as a total return index on a monthly basis,
adjusted for asset in- and outflows, including a reselection
according to the procedure outlined above, on a quarterly
basis.

GOLDMAN SACHS EMERGING MARKET DEBT A (GSDAX)

The investment seeks a high level of total return
consisting of income and capital appreciation. The fund
normally invests at least 80% of assets in fixed-income
securities of issuers located in emerging countries. The
majority of countries in which the fund invests will have
sovereign ratings that are below investment grade or are
unrated. Moreover, to the extent the fund invests in

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 14

corporate or other privately issued debt obligations,
many of the issuers of such obligations will be smaller
companies with stock market capitalizations of $1 billion
or less at the time of investment. The fund is
nondiversified.

CBOE GOLD Index

The CBOE Gold Index (“Index”) currently1 consists of
12 companies involved primarily in gold mining and
production that have common shares or ADRs listed on
NYSE, Nasdaq-NMS or AMEX.
The Index is calculated using an “equal-dollar weighting”
methodology designed to ensure that each of its
component securities is represented in approximate
equal dollar value. Index values are disseminated every
15 seconds throughout each trading day. The number of
shares of each component stock in the Index remains
fixed between quarterly reviews except in the event of
certain types of corporate actions, such as the payment
of a dividend (other than an ordinary cash dividend),
stock distributions, stock splits, reverse stock splits, rights
offerings, distributions, reorganizations, or similar events
with respect to an Index component stock. In the case of
such an action, if the stock remains in the Index, the
number of shares of that security may be adjusted, to the
nearest whole share, to maintain the component's
relative weight in the Index at the level immediately prior
to the corporate action.

RUSSIA RTSI
The RTS Stock Exchange calculates and publishes 9
indexes: RTS Index, RTS-2 Index, and 7 sectoral indexes.
The RTS Index and the RTS-2 Index are calculated using
two different lists of stocks.

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 15

 The RTS Index, RTSI, the official Exchange indicator,
first calculated on September 1, 1995, is similar in
function to the Dow Jones Average in New York City.
RTSI is computed on thirty-minute intervals using
real-time prices of the 50 most liquid Russian stocks
listed on the Exchange and is relayed to the RTS Web
site, RTS workstations and news agencies. The
constituent list of stocks is reviewed every 3 months

JPMORGAN EMERGING MKTS DEBT SEL (JEMDX)

The investment seeks high total return from a
portfolio of fixed-income securities of emerging-markets
issuers. The fund normally invests at least 80% of assets
in emerging-market debt investments. These emerging-
market securities may be denominated in foreign
currencies or the U.S. dollar. The fund does not have any
minimum quality rating and may invest without limit in
securities that are rated below investment grade
(commonly known as junk bonds) or the unrated
equivalent. It is non-diversified
OPPENHEIMER GOLD & SPECIAL MINERALS A (OPGSX)
The investment seeks capital appreciation. The fund
currently invests mainly in common stocks of U.S. and
foreign companies that are involved in mining, processing
or dealing in gold or other metals or minerals. It normally
invests at least 80% of assets (plus borrowings for
investment purposes) in those companies. The fund
invests at least 25% of investments in mining securities
and metal investments. It is non-diversified

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 16

DOMESTIC MARKETS
• Allocated weights to various equities using Solver
Software

RISK RETURN
0.7031 0.7685
COMPANIES WEIGHTS
DENA BANK 0.25
BAJAJ AUTO 0.25
FINANCE
EICHER 0.25
MOTORS
SPECTRA INDIA 0.25

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 17

EFFICIENT FRONTIER CURVE

CHURNING 1: By changing the portfolio from October

2004 to September 2009
During the first churning process we have reduced
the Risk along with the Return to make it more stable
which wont be much affected by the volatility in the
markets
For this we have replaced SPECTRA INDIA with a pharma
company

Sector Company
BANKING DENA BANK
BANKING BAJAJ AUTO
FINANCE
AUTOMOBILE EICHER
INDUSTRY MOTORS
PHARMA AVENTIS

RISK RETURN
0.3687 0.3249

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 18

 COMPANIES WEIGHTS
DENA BANK 0.25
BAJAJ AUTO 0.25
FINANCE
EICHER MOTORS 0.25
AVENTIS 0.25

EFFICIENT FRONTIER CURVE

CHURNING 2: By changing the portfolio from April 2005 to

March2010
At second churning we have again introduced one
more pharma company to stabilies and reduce the effect
of slowdown in the markets by giving the same returns to
our clients.

Sector Company
BANKING DENA BANK
PHARMA JYOTI LAB

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 19

 AUTOMOBILE EICHER
INDUSTRY MOTORS
PHARMA AVENTIS

RISK RETURN
0.3656 0.3249
COMPANIES WEIGHTS
DENA BANK 0.25
JYOTI LAB 0.25
EICHER 0.25
MOTORS
AVENTIS 0.25

EFFICIENT FRONTIER CURVE

GLOBAL MARKET
Portfolio process will be same as above. The allocated
weights to different assets classes.

RISK RETURN
0.1511 0.13
COMPANIES WEIGHTS
MEXICO IPC 0.25
HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 20
 DOW JONES
CREDIT SUISSE 0.25
HEDGE FUND
INDEX EQUITY
MARKET
NEUTRAL
GOLDMAN SACHS 0.25
EMERGING
MARKET DEBT A
(GSDAX)
CBOE GOLD 0.25
INDEX

EFFICIENT FRONTIER CURVE

• By changing the portfolio from October 2004 to

September 2009
We have selected Russia RTS, as the index is
performing well and it earns high returns with
reduced risks

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 21

 RISK RETURN
0.20 0.1693
COMPANIES WEIGHTS
RUSSIA RTSI 0.25
DOW JONES
CREDIT SUISSE 0.25
HEDGE FUND
INDEX EQUITY
MARKET
NEUTRAL
JPMORGAN 0.25
EMERGING MKTS
DEBT SEL
(JEMDX)
CBOE GOLD 0.25
INDEX

EFFICIENT FRONTIER CURVE

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 22

 • By changing the portfolio from april 2005 to march
2010
Here we have changed two index which will help us
to increase the returns substantially.
• We have introduced OPPENHEIMER GOLD & SPECIAL
MINERALS A (OPGSX) and GOLDMAN SACHS
EMERGING MARKET DEBT A (GSDAX), as the index is
performing well and it earns high returns with
reduced risks

RISK RETURN
0.2516 0.2553
COMPANIES WEIGHTS
RUSSIA RTSI 0.25
OPPENHEIMER
GOLD & SPECIAL 0.25
MINERALS A
(OPGSX)
GOLDMAN 0.25
SACHS
EMERGING
MARKET DEBT A
(GSDAX)
CBOE GOLD 0.25
INDEX

EFFICIENT FRONTIER CURVE

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 23

PORTFOLIO EVALUATION
• Now we will compare our portfolio with the
benchmark index i.e with NIFTY NSE INDEX.
• We evaluate our portfolio by using Sharpe Ratio= Si =
Ri – rfr/ σ

DOMESTIC
ASSUMPTION: RISK FREE RATE TI BE 0.06

SHARPE RATIO
BASIC PORTFOLIO 1.0078
CHURNING 1 0.7183
CHURNING 2 0.7244

DOMESTIC PERFORMANCE- FUND V/S BENCHMARK

YEAR PORTFOLIO BENCHMARK

MEAN MEAN
BASIC 0.7685 0.3191848
PORTFOLIO 3

CHURNING 1 0.3249 0.292665

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 24

 CHURNING 2 0.3249 0.265893

COLOUMN CHART SHOWING THE GOOD

PERFORMANCE OF PORTFOLIO AGAINST NIFTY
BENCHMARK

ANALYSIS
• In the initial period, sharpe ratio is 1.0078 and the
returns of the portfolio is 0.7685 which is more than
double the return when compared to the Benchmark
mean.

• At first churning we have tried to make the portfolio

more stable with reduced risk. This could be looked
HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 25
 upon as a long term strategy for increased return at
some point ahead in time.

• At second churning we have justified the steps taken

during the first churning for stable portfolio with
constant returns irrespective of the market
performance.
Moreover the sharp ratio has increased with almost the
same returns although the market performance has
constantly declining.

GLOBAL
ASSUMPTION: RISK FREE RATE TI BE 0.03

SHARPE RATIO
BASIC 0.6621
PORTFOLIO
CHURNING 1 0.6966
CHURNING 2 0.8962

GLOBAL PERFORMANCE- FUND V/S BENCHMARK

YEAR PORTFOLIO BENCHMARK

MEAN MEAN
BASIC 0.1300 -
PORTFOLIO 0.0537351
1

CHURNING 1 0.1693 0.002454

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 26

 CHURNING 2 0.25553 0.011743

COLOUMN CHART SHOWING THE GOOD PERFORMANCE

OF PORTFOLIO AGAINST BENCHMARK

ANALYSIS

• The sharpe ratiohas been constantly increasing from

66 per cent to 69 per cent and then to 89 per cent
which justifies the equity asset class we have
justified with our portfolio as it performing good.
• It can be seen that returns are increasing by 23.41%.
• Also the portfolio mean has been constantly on a
higher side when compared to the benchmark which
has given negative returns for some period.

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 27

COST (EXIT LOAD)
• These cost are charged to a scheme to meet its
selling,marketing & distribution expenses.
• These loads are charged as a percentage of NAV.
• Entry load are charged when investors enters the
shceme.
So there is no entry load in our investors portfolio.
• Exit loads reduces the amount received by the
investor.
• If an investor exits from investments early he has to
bear more exit load & if he remains invested for long
period of time then exit load will reduce.
• Exits load charges are 1.25%

PORTFOLIO MANAGERS BACK GROUND

HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 28

 • HIGH PERFORMANCE FUND managers, have
completed MMS in finance with core area of
specialization in portfolio management.

CONCLUSIONS

• The Indian Stock market index(Sensex) continued to

move upwards to the 19200 mark and the Indian
Shares have entered a new bull market with 20%
gain from 2010 lows(reporting from
economictimes.com).
• According to recent data as on 13/09/10 ,investors
should put more money in Banks ,Capital goods,Real
estate and Metals.
• So investors should keep on diversifying their
portofolios by adding above sectors into it.
• According to Uday Kotak,VC Kotak Bank ,India seems
like the last man standing around in this world with
the kind of robust domestic consumption and GDP
growth.
HIGH PERFORMANCE FUND [DATE: 08/10/2010] Page 29
 • India’s Economy grew at 8.8% in june 2010 quarter
compared to 8.6% in previous 3 months.
• So investors have good oppurtunities to invest in
India due to robust economic growth.
• We have considered till now the Indian perspective
and now let see from the Global perspective by
investing into different asset classes of different
countries across the world.
• So we have selected countries on the basis of their
Economic indicators-GDP,Interests rates,Inflation
rates etc

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