CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION TO MUTUAL FUND

A Mutual Fund is a trust that pools the savings of a number of investors who
share a common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through these
investments and the capital appreciations realized 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. The flow chart below describes broadly
the working of a mutual fund.

Fig 1.1 Working of Mutual Fund

1.2 INDUSTRY PROFILE

The mutual fund industry in India started in 1963 with the formation f Unit
Trust of India, at the initiative of the government of India and Reserve Bank of India. The
origin of mutual fund industry in India is with the introduction of the concept of mutual fund
by UTI in the year 1963. Though the growth was slow, but it accelerated from the year 1987
when non-UTI players entered the industry.
In the past decade, Indian mutual fund industry had seen a dramatic
improvement, both quality wise as well as quantity wise. Before, the monopoly of the market
had seen an ending phase; the Assets Under Management (AUM) was Rs. 67bn. The private
sector entry to the fund family rose the AUM to Rs. 470 bn in March 1993 and till April
2004, it reached the height of 1,540 bn.

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

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

First phase – 1964-87

Unit Trust of India (UTI) was established in 1963 by an act of Parliament. It was set up by
the Reserve Bank of India and functioned under the Regulatory and Administrative control of
the RBI. In 198 UTI was de-linked from the RBI and the Industrial Development Bank of
India took over the regulatory and administrative control in place of RBI. The first scheme
launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700 crores of
assets under management.

Second phase – 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non – UTI, public sector mutual funds set up by public sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non-UTI Mutual Fund established in June 1987
followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund
(Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund
in December 1990.

At the end of 1993, the mutual fund industry had assets under management of Rs. 47,004
crores.

Third phase – 1993 – 2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year
in which the first Mutual Fund Regulations came into being, under which all mutual funds,
except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged
with Franklin Templeton) was the first private sector mutual fund registered in July 1993.

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

The number of mutual fund houses went on increasing with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and acquisitions.
At the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805
crores. The Unit Trust of India with Rs. 44, 541 crores of assets under management was way
ahead of other mutual funds.

Fourth phase – since february 2003

In February 2003, following the repeal of the Unit Trust of Indian Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of
India with assets under management of Rs. 29,835 crores at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other schemes.
The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the purview of the
Mutual Fund Registrations.
 The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual fund regulations. With the bifurcation
of the erstwhile UTI which had in March 2000 more than 76,000 Crores of assets under
management and with the setting up of a UTI mutual fund, conforming to the SEBI mutual
fund regulations, and with recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of consolidation and growth. As at the
end of September 20004, there were 29 funds, which manage assets of Rs.1, 53,108 Crores
under 421 schemes.
ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI)

With the increase in Mutual Fund players in India, a need for Mutual Fund Association in
India was generated to function as a non-profit organization. Association of Mutual Funds in
India (AMFI) was incorporated on 22nd August 1995.

AMFI is an apex body of all Asset Management Companies (AMC) which has been
registered with Securities Exchange Board of India (SEBI). Till date all the AMCs are that
have launched mutual fund schemes are its members. It functions under the supervision and
guidelines of its Board of Directors. It follows the principal of both protecting and promoting
the interest of mutual funds as well as their unit holders. The objectives are as follows:

 This Mutual Fund Association of India maintains high professional and ethical
standards in all areas of operation of the industry
 AMFI interacts with SEBI and works according to SEBIs guidelines in the Mutual
Fund industry.
 Associations of Mutual Fund of India do represent the Government of India, the
Reserve Bank of India and other related bodies on matters relating to the Mutual Fund
Industry.
 It develops a team of well qualified and trained Agent distributors. It implements a
programme of training and certification for all intermediaries and other engaged in the mutual
fund industry.
 AMFI undertakes all India awareness programme for investors in order to promote
proper understanding of the concept and working of Mutual Funds.
1.3 COMPANY PROFILE

Geojit BNP Paribas Financial service Ltd

Geojit BNP Paribas today is a leading retail financial services company in

India with a growing presence in the Middle East. The company rides on its rich experience
in the capital market to offer its clients a wide portfolio of savings and investment solutions.
The gamut of value-added products and services offered ranges from equities and derivatives
to Mutual Funds, Life & General Insurance and third party Fixed Deposits. The needs of over
576,000 clients are met via multichannel services - a countrywide network of over 540
offices, phone service, dedicated Customer Care centre and the Internet. 

Geojit BNP Paribas has membership in, and is listed on, the National Stock
Exchange (NSE) and the Bombay Stock Exchange (BSE). In 2007, global banking major
BNP Paribas joined the company’s other major shareholders - Mr. C.J.George, KSIDC
(Kerala State Industrial Development Corporation) and Mr.Rakesh Jhunjhunwala – when it
took stake to become the single largest shareholder.

At the forefront of the many fruitful associations between Geojit BNP Paribas
and BNP Paribas is their joint venture, namely, BNP Paribas Securities India Private Limited.
This JV was created exclusively for domestic and foreign institutional clients. An industry
first was achieved when Geojit BNP Paribas became the first broker in India to offer full
Direct Market Access(DMA) on NSE to the JV’s institutional clients.

A strong brand identity and extensive industry knowledge coupled with BNP
Paribas’ international expertise gives Geojit BNP Paribas a competitive advantage.

Wide range of products and services 

Certified financial advisors help clients to arrive at the right financial solution to meet their
individual needs. The wide range of products and services on offer includes -
Equities , Derivatives, Currency Futures , Custody Accounts ,Mutual Funds , Life Insurance
& General Insurance , IPOs , Portfolio Management Services , Property Services , Margin
Funding , Loans against Shares
Evolution of the company :
It all started in the year 1987 when Mr. C.J. George and Mr. Ranajit Kanjilal founded Geojit
as a partnership firm. In 1993, Mr.Ranajit Kanjilal retired from the firm and Geojit became
the proprietary concern of Mr. C .J. George. In 1994, it became a Public Limited Company
named Geojit Securities Ltd. The Kerala State Industrial Development Corporation Ltd.
(KSIDC), in 1995, became a co-promoter of Geojit by acquiring a 24 percent stake in the
company, the only instance in India of a government entity participating in the equity of a
stock broking company. The year 1995 also saw Geojit being listed on the leading regional
stock exchanges. Geojit listed at The Stock Exchange, Mumbai (BSE) in the year 2000.
Company’s wholly owned subsidiary, Geojit Commodities Limited, launched Online Futures
Trading in agri-commodities, precious metals and energy futures on multiple commodity
exchanges in 2003. This was also the year when the company was renamed as Geojit
Financial Services Ltd. (GFSL). Company is a charter member of the Financial Planning
Standards Board of India and is one of the largest Depository Participant(DP) brokers in the
country.Global banking major BNP Paribas took a stake in the year 2007 to become the
single largest shareholder. Consequently, Geojit BNP Paribas has been renamed as Geojit
BNP Paribas Financial Services Ltd.
Milestones

1986

 Membership in Cochin Stock Exchange (CSE).

 1994 
 Becomes a Public Limited Company named Geojit Securities Ltd.
      
 1995 

 Kerala State Industrial Development Corporation Ltd.(KSIDC) acquires 24 percent

equity stake.
 Membership in National Stock Exchange (NSE).
 Public Issue
1996

 Launch of Portfolio Management Services with SEBI registration.

1997 

 Depository Participant (DP) under National Securities Depository Limited.

1999 

 Membership in Bombay Stock Exchange (BSE).

2000
 BSE Listing.
 1st broking firm in India to offer online trading facility.
 Commences Derivative Trading with NSE.
 Integrates the 1st Bank Payment Gateway in the country for Internet Trading.
2001
 Becomes India's first DP to launch depository transactions through Internet.
 Establishes Joint Venture in the UAE to serve NRI customers.
2002
 1st in India to launch an integrated internet trading system for Cash & Derivatives
segments.
2003
 Geojit Commodities Limited, wholly owned subsidiary, launched Online Futures
Trading in agri-commodities, precious metals and in energy futures on multiple
commodity exchanges.
 National launch of online futures trading in Rubber, Pepper, Gold, Wheat and Rice.
 Company renamed as Geojit BNP Paribas.
 2004
 National launch of online futures trading in Cardamom.
 2005
 NSE Listing.
 Geojit Credits, a subsidiary, registers with RBI as a Non-Banking Financial Company
(NBFC).
 National launch of online futures trading in Coffee.
      
 2006
 Charter member of the Financial Planning Standards Board of India.
 2007
 BNP Paribas takes a stake in the company’s equity, making it the single largest
shareholder.
 Establishes Joint Venture in Saudi Arabia to serve the Saudi national and the NRI.
2008
 BNP Paribas Securities India (P) Ltd. – a Joint Venture with BNP Paribas S.A. for
Institutional Brokerage.
 1st brokerage to offer full Direct Market Access execution in India for institutional
clients.
 2009
 Launch of Property Services division.
 Launch of online trading in Currency Derivatives.
1.4 NEED FOR THE STUDY

The advisors of the Geojit BNP Paribas financial ltd had to suggest Mutual fund schemes to
the investors while constructing the portfolio of the investors.

Since Geojit BNP Paribas is not AMC the advisors were facing the problem of identifying the
best performing funds. This report aimed at identifying the best performing schemes to help
the advisors to suggest the investors to invest in those schemes.
1.5 OBJECTIVES OF THE STUDY:

Primary objective:

To evaluate the performance of balanced,income,equity schemes of HDFC Mutual Fund, JM

Financial Mutual Fund,SBI Mutual Fund and TATA Mutual Funds.
Secondary objective

 To evaluate the Risk involved in balanced,income and equity Schemes of HDFC

Mutual Fund, JM Financial Mutual Fund, SBI Mutual Fund and TATA Mutual
Funds..
 To evaluate the return of balanced,income and equity scheme of those mentioned
AMC with respect to Benchmark of S&P CNX Nifty index.
 To rank these schemes of HDFC Mutual Fund, JM Financial Mutual Fund, SBI
Mutual Fund and TATA Mutual Funds based upon their performance
1.6 SCOPE OF THE STUDY:
 The study was conducted in Geojit BNP Paribas
 The schemes covered under the study are Equity,Income,Balanced
 The study covers only few major asset management companies of the above schemes
HDFC Mutual Fund, JM Financial Mutual Fund, SBI Mutual Fund and TATA Mutual
Funds.
 The study covers the period of past 4 years from Jan 2007 to Dec 2010.
 The study covers only the open-ended funds with dividend option.
 CHAPTER 2

LITERATURE SURVEY

2.1 REVIEW OF LITERATURE

Performance evaluation of mutual funds is one of the preferred areas of research where a
good amount of study has been carried out. The area of research provides diverse views of
the same.
Meaning of Mutual fund:
A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such
as shares, debentures and other securities
Performance Evaluation Of Mutual fund
There are various ways to measure mutual fund performance. The simplest way suggested
by McCulloch (2003) was by finding the geometric mean of the fund
return.However,riskwasnotconsideredon this model. Many ways of measuring riskadjusted
returns was discovered but all of these differed in their definition and measurement of
risk(Simons,1998).According to Fama (1972), the mutual fund performance can be measured
on two basis:
Selectivity:theabilitytopickthebeststocksatagivenlevelofrisk
Timing–theabilitytopickthegeneralpricemovements.
Risk
The dictionary meaning of risk is the possibility of loss or injury. Any rational investor,
before investing his/her investible wealth in the security, analyzes the risk associated with a
particular security. The actual return he receives from a security may vary from his expected
return and the risk is expressed in term of variability of return
Risk Measurement
Understanding the nature of risk is not adequate unless the investor or analyst is capable of
expressing it in some quantitative terms. Measurements cannot be assured of cent percent
accuracy because risk is caused by numerous factors such as social, political, economic and
managerial efficiency. The statistical tools used to quantify risk are:
Standard Deviation:

σ = Standard Deviation;

N = Number of observations;

d = Deviations from actual mean;

A measure of the dispersion of a set of data from its mean. The more spread apart the data is,
the higher the deviation. In finance, standard deviation is applied to the annual rate of return
of an investment to measure the investment's volatility (risk).
A volatile stock would have a high standard deviation. In mutual funds, the standard
deviation tells us how much the return on the fund is deviating from the expected normal
returns. Standard deviation can also be calculated as the square root of the variance.

Beta
Beta describes the relationship between the securities return and the index returns.

β = Beta of the fund;

N = Number of Observations;

X = Monthly return of NAV;

Y = Monthly return of the Index.

Beta = + 1.0
One percent change in market index returns causes exactly one percent change in the
security return. It indicates that the security moves in tandem with the market.

Beta = + 0.5
 One percent change in the market index return causes 0.5 percent change in the
security return. The security is less volatile compared to the market.
Beta = + 2.0
One percent change in the market index return causes 2 percent change in the security
return. The security return is more volatile. When there is a decline of 10% in the market
return, the security with beta of 2 would give a negative return of 20%. The security with
more than 1 beta value is considered to be risky.
Negative Beta
Negative beta value indicates that the security return moves in the opposite direction
to the market return. A security with a negative beta of -1 would provide a return of 10%, if
the market return declines by 10% and vice-versa.
RATE OF RETURN:

The compounded annual return on a mutual fund scheme represents the return to investors
from a scheme since the date of issue. It is calculated on NAV basis or price basis.

Rate of Return for a period:

R= ((A-B)/B)*100

Where,

A = NAV at the end of the period of the period;

B = NAV at the beginning of the period

Net Asset Value (NAV):

The net asset value of the fund is the cumulative market value of the assets fund of its
liabilities. In other words, if the fund is dissolved or liquidated, by selling off all the assets in
the fund, this is the amount that the shareholders would collectively own. This gives rise to
the concept of net asset value per unit, which is the value, represented by the ownership of
one unit in the fund. It is calculated simply by dividing the net asset value of the fund by the
number of units. However, most people refer loosely to the NAV per unit as NAV, ignoring
the “per unit”. We also abide by the same convention.
Treynor Measure:
According to Jack Trteynor, systematic risk or beta is the appropriate measure of risk,
as suggested by the capital asset pricing model. The Treynor measure of portfolio
performance relates the excess of return on a port folio on portfolio beta. The Treynor
measure reflects the excess return earned per unit of risk. As systematic risk is the measure of
risk, the Treynor measure implicitly assumes that the portfolio is well diversified.

TM= Treynor Measure;

=Average rate of return of portfolio p;

= Average rate of return on a risk free investment (assuming 7% );

= Beta of the portfolio p.

Sharp Measure:
The Sharpe measure is similar to the Treynor measure except that it employs standard
deviation, not beta, as the measure of risk. Hence, the Sharpe measure reflects the excess
return earned on portfolio per unit of its total risk (standard deviation).

SM= Sharp Measure;

=Average rate of return of portfolio p;
= Average rate of return on a risk free investment (assuming 7% );
= Standard deviation of return of portfolio.
Jensen Measure:
Jensen’s alpha is based on the capital asset pricing model. It reflects the difference
between the return actually earned on portfolio and return the portfolio was supposed to earn,
given its beta as per the capital asset pricing model.

JM= Jensen Measure;

=Average rate of return of portfolio p;
= Average rate of return on a risk free investment (assuming 7%);
= Beta;
=Average rate of return of market portfolio.

Title: performance of Indian Mutual Fund Schemes in a bear market

Abstract:
It evaluated the performance of mutual fund scheme using relative performance index, risk-
return analysis, Treynor’s ratio, Sharpe’s ratio, Jensen’s measure, Fama’s measure. The study
finds that Medium Term Debt Funds were the best performing funds during the bear period
of September 98-April 2002 and 58 of 269 open ended mutual funds provided better returns
than the overall market returns.

Title: Analysis of open ended equity mutual fund schemes

Abstract:
It aimed at analyzing performance of select open-ended equity mutual fund using Sharpe
Ratio, Hypothesis testing and return based on yield. The most important finding of the study
had been that only four Growth plans and one Dividend plan (5 out of the 42 plans studied)
could generate higher returns than that of the market which is contrary to the general opinion
prevailing in the Indian mutual fund market. Even the Sharpe ratios of Growth plans and the
corresponding Dividend plans stand testimony to the relatively better performance of Growth
plans. The statistical tests in terms of F-test and t-Test further corroborate the significant
performance differences between the Growth plans and Dividend plans.
 CHAPTER 3
RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN

A Research design is a method and procedure for acquiring information needed to
solve the problem. A research design is the basic plan that helps in the data collection or
analysis. It specifies the type of information to be collected the sources and data collection
procedure.
Research is an academic activity and as such the term should be used in a technical
sense. According to Clifford woody research comprises defining and redefining problems,
formulating suggested solution; collecting organizing and evaluating data; making deductions
and reaching conclusions at last carefully testing the conclusions to determine whether they
fit the formulating hypothesis.
Redman and Mory define research as a “systematized effort to gain new knowledge”.
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically.
Meaning of research
Research is simply the process of finding solutions to a problem after a thorough
study and analysis of the situational factors.
Research Design
A research design is the arrangement of conditions for collections and analysis of
data in a manner that aims to combine relevance to the research purpose with economy in
procedure.
 Exploratory research study
 Descriptive research study
 Hypothesis testing research study
The research design used for the study is Exploratory research.
Exploratory Research study
Exploratory research design is used principally to gain a deeper understanding of something.
The design is far more flexible and dynamic than that of descriptive research.Exploratory
research often relies on secondary data  such as reviewing available literature and/or data, or
qualitative approaches such as informal discussions with consumers, employees etc.
 In this research an attempt has been made to analyze the past performance of the
Equity, Income or Balanced schemes provided by HDFC Mutual Fund, JM Financial Mutual
Fund, Sundaram BNP Paribas Mutual Fund, SBI Mutual Fund and TATA Mutual Funds to
know the benefits to the investors. The study is done on Equity, Income or Balanced schemes
provided by the companies to know the companies performance for the past 4years and to
know the risk and returns of the funds.

3.2 DATA COLLECTION METHOD

SECONDARY DATA is used for the study:
 Internet sources.
 Newspapers.
 Announcements and publishing’s by the company.

3.3 ASSUMPTION
The risk free rate of return is assumed to be 7.5%

3.4 TOOLS FOR ANALYSIS

 Rate of Return
 Standard deviation
 Beta
 Sharpe’s Ratio
 Treynor Ratio
 Jenson Ratio
 CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

4.1 HDFC EQUITY FUND

Opening Closing Returns(X Index Total index
Month (RS) (RS) ) Return return(Y) Y*Y X*Y
2007
Jan 43.968 45.193 2.711 4082.7 1.844 3.400 4.998
Feb 45.193 42.16 -7.194 3745.3 -9.009 81.155 64.808
March 42.16 37.424 -12.655 3821.55 1.995 3.981 -25.250
April 37.424 36.669 -2.059 4087.9 6.516 42.453 -13.415
May 36.669 42.326 13.365 4295.8 4.840 23.422 64.683
June 42.326 43.384 2.439 4318.3 0.521 0.271 1.271
July 43.384 45.223 4.067 4528.85 4.649 21.614 18.906
Aug 45.223 44.305 -2.072 4464 -1.453 2.110 3.010
Sep 44.305 47.982 7.663 5021.35 11.100 123.201 85.059
Oct 47.982 55.188 13.057 5900.65 14.902 222.062 194.575
Nov 55.188 54.106 -2.000 5762.75 -2.393 5.726 4.785
Dec 54.106 58.606 7.678 6138.6 6.123 37.488 47.013
2008
Jan 58.606 49.444 -18.530 5137.45 -19.487 379.755 361.101
Feb 49.444 49.229 -0.437 5223.5 1.647 2.714 -0.719
March 49.229 38.245 -28.720 4734.5 -10.328 106.677 296.634
April 38.245 41.06 6.856 5165.9 8.351 69.738 57.252
May 41.06 39.125 -4.946 4870.1 -6.074 36.891 30.039
June 39.125 33.027 -18.464 4040.55 -20.531 421.506 379.071
July 33.027 34.998 5.632 4332.95 6.748 45.539 38.005
Aug 34.998 36.661 4.536 4360 0.620 0.385 2.814
Sep 36.661 33.616 -9.058 3921.2 -11.190 125.226 101.365
Oct 33.616 25.448 -32.097 2885.6 -35.889 1287.988 1151.909
Nov 25.448 23.484 -8.363 2755.1 -4.737 22.436 39.613
Dec 23.484 25.923 9.409 2959.15 6.896 47.549 64.878
2009Jan 25.923 23.934 -8.310 2874.8 -2.934 8.609 24.384
Feb 23.934 22.644 -5.697 2763.65 -4.022 16.175 22.912
March 22.644 21.854 -3.615 3020.95 8.517 72.542 -30.789
April 21.854 25.518 14.358 3473.95 13.040 170.039 187.233
May 25.518 34.111 25.191 4448.95 21.915 480.280 552.074
June 34.111 34.708 1.720 4291.1 -3.679 13.532 -6.327
July 34.708 37.669 7.861 4636.45 7.449 55.481 58.550
Aug 37.669 38.747 2.782 4662.1 0.550 0.303 1.531
Sep 38.747 42.525 8.884 5083.95 8.298 68.852 73.718
 Oct 42.525 41.963 -1.339 4711.7 -7.901 62.419 10.581
Nov 41.963 44.995 6.739 5032.7 6.378 40.683 42.980
Dec 44.995 46.376 2.978 5201.05 3.237 10.477 9.639
2010
Jan 46.376 44.405 -4.439 4882.05 -6.534 42.695 29.003
Feb 44.405 44.845 0.981 4922.3 0.818 0.669 0.802
March 44.845 43.422 -3.277 5249.1 6.226 38.761 -20.403
April 43.422 44.937 3.371 5278 0.548 0.300 1.846
May 44.937 44.262 -1.525 5086.3 -3.769 14.205 5.748
June 44.262 46.551 4.917 5312.5 4.258 18.130 20.937
July 46.551 48.307 3.635 5367.6 1.027 1.054 3.732
Aug 48.307 50.215 3.800 5402.4 0.644 0.415 2.448
Sep 50.215 54.518 7.893 6029.95 10.407 108.310 82.142
Oct 54.518 55.267 1.355 6017.7 -0.204 0.041 -0.276
Nov 55.267 54.317 -1.749 5862.7 -2.644 6.990 4.624
Dec 54.317 54.859 0.988 6134.5 4.431 19.631 4.377

Table 4.1

Table showing the calculations of Return and Beta of HDFC Equity fund and S&P
CNX NIFTY

N = 48   ΣXY = 4053.870

ΣX =   σ = 10.265
- 1.679

21.717

ΣY =   β = 0.931

ΣY
² = 4363.880        

Table 4.1.1
Table showing the Standard deviation and Beta of HDFC Equity fund

Inference: As the β is less than 1 it can be said that the scheme is less risky. For One percent
change in the market index causes 0.931 percent change in the scheme return. The scheme is
less volatile compared to the market. The Standard Deviation of the scheme is 10.265 which
means the scheme’s returns vary with the index to the extent of 10.265.
4.2 JM FINANCIAL EQUITY FUND
Total
Opening Closing Index index
Month (RS) (RS) Returns(X) Return return(Y) Y*Y X*Y
2007 Jan 17.93 17.68 -1.414 4082.7 1.844 3.400 -2.607
Feb 17.68 15.37 -15.029 3745.3 -9.00862 81.155 135.393
March 15.37 14.79 -3.922 3821.55 1.995264 3.981 -7.825
April 14.79 16.14 8.364 4087.9 6.51557 42.453 54.498
May 16.14 17.42 7.348 4295.8 4.839611 23.422 35.561
June 17.42 18.1927 4.247 4318.3 0.521038 0.271 2.213
July 18.1927 19.4839 6.627 4528.85 4.649083 21.614 30.810
Aug 19.4839 19.7071 1.133 4464 -1.45273 2.110 -1.645
Sep 19.7071 21.5895 8.719 5021.35 11.0996 123.201 96.778
Oct 21.5895 23.9746 9.948 5900.65 14.90175 222.062 148.249
Nov 23.9746 24.001 0.110 5762.75 -2.39295 5.726 -0.263
Dec 24.001 25.878 7.253 6138.6 6.122732 37.488 44.410
2008 Jan 25.878 20.4415 -26.595 5137.45 -19.4873 379.755 518.273
Feb 20.4415 20.4028 -0.190 5223.5 1.647363 2.714 -0.312
March 20.4028 17.8581 -14.250 4734.5 -10.3284 106.677 147.176
April 17.8581 19.7532 9.594 5165.9 8.350917 69.738 80.118
May 19.7532 18.4496 -7.066 4870.1 -6.0738 36.891 42.916
June 18.4496 14.6266 -26.137 4040.55 -20.5306 421.506 536.615
July 14.6266 15.3111 4.471 4332.95 6.748289 45.539 30.169
Aug 15.3111 15.6688 2.283 4360 0.620413 0.385 1.416
Sep 15.6688 13.7414 -14.026 3921.2 -11.1905 125.226 156.960
Oct 13.7414 9.7395 -41.089 2885.6 -35.8886 1287.988 1474.638
Nov 9.7395 9.145 -6.501 2755.1 -4.73667 22.436 30.792
Dec 9.145 9.967 8.247 2959.15 6.895561 47.549 56.869
2009Jan 9.967 8.9848 -10.932 2874.8 -2.93412 8.609 32.075
Feb 8.9848 8.1628 -10.070 2763.65 -4.02186 16.175 40.500
March 8.1628 9.0437 9.740 3025.95 8.668352 75.140 84.434
April 9.0437 10.5352 14.157 3473.95 12.89598 166.306 182.572
May 10.5352 14.4639 27.162 4448.95 21.91528 480.280 595.265
June 14.4639 14.2536 -1.475 4291.1 -3.67854 13.532 5.427
July 14.2536 14.9265 4.508 4636.45 7.448587 55.481 33.579
Aug 14.9265 15.3029 2.460 4662.1 0.550181 0.303 1.353
Sep 15.3029 16.1721 5.375 5083.95 8.297682 68.852 44.597
Oct 16.1721 15.2166 -6.279 4711.7 -7.90055 62.419 49.610
Nov 15.2166 15.78 3.570 5032.7 6.378286 40.683 22.773
 Dec 15.78 15.9851 1.283 5201.05 3.236846 10.477 4.153
2010 Jan 15.9851 15.2598 -4.753 4882.05 -6.53414 42.695 31.057
Feb 15.2598 14.9385 -2.151 4922.3 0.817707 0.669 -1.759
March 14.9385 14.2604 -4.755 5249.1 6.225829 38.761 -29.605
April 14.2604 14.5078 1.705 5278 0.547556 0.300 0.934
May 14.5078 13.9944 -3.669 5086.3 -3.76895 14.205 13.827
June 13.9944 14.8225 5.587 5312.5 4.257882 18.130 23.788
July 14.8225 14.8849 0.419 5367.6 1.02653 1.054 0.430
Aug 14.8849 14.7329 -1.032 5402.4 0.644158 0.415 -0.665
Sep 14.7329 16.193 9.017 6029.95 10.40722 108.310 93.840
Oct 16.193 16.2964 0.634 6017.7 -0.20357 0.041 -0.129
Nov 16.2964 15.6659 -4.025 5862.7 -2.64383 6.990 10.641
Dec 15.6659 16.3345 4.093 6134.5 4.430679 19.631 18.136

Table 4.2

Table showing the calculations of Return and Beta of JM Financial Equity fund and
S&P CNX NIFTY

N = 48   ΣXY = 4868.036

ΣX =   Σ = 11.264
- 37.304

21.717

ΣY =   Β = 1.122

ΣY
² = 4363.880        

Table 4.2.1
Table showing the Standard deviation and Beta of JM Financial Equity fund

Inference: The beta of the scheme is more than +1 means the scheme is prone to more risk.
This means that the scheme is more volatile. If the market declines by 1 percent then the
scheme also declines but by 1.122 percent. The standard deviation of the scheme is 11.264,
which means the fund has very much variation in the returns when compared with its
benchmark index S&P CNX index.
4.3 SBI EQUITY MUTUAL FUND

Total
Opening Closing Index index
Month (RS) (RS) Returns Return return Y*Y X*Y
2007 Jan 27.87 28.53 2.313 4082.7 1.844 3.400336 4.266
Feb 28.53 26.49 -7.701 3745.3 -9.009 81.15531 69.376
March 26.49 26.56 0.264 3821.55 1.995 3.981077 0.526
April 26.56 28.41 6.512 4087.9 6.516 42.45266 42.428
May 28.41 29.58 3.955 4295.8 4.840 23.42183 19.142
Jun 29.58 30.58 3.270 4318.3 0.521 0.271481 1.704
July 30.58 32.65 6.340 4528.85 4.649 21.61397 29.475
Aug 32.65 32.39 -0.803 4464 -1.453 2.110433 1.166
Sep 32.39 36.06 10.177 5021.35 11.100 123.2012 112.966
Oct 36.06 42.45 15.053 5900.65 14.902 222.0621 224.316
Nov 42.45 38.63 -9.889 5762.75 -2.393 5.726232 23.663
Dec 38.63 41.52 6.961 6138.6 6.123 37.48784 42.617
2008Jan 41.52 34.32 -20.979 5137.45 -19.487 379.7546 408.824
Feb 34.32 32.45 -5.763 5223.5 1.647 2.713804 -9.493
March 32.45 29.06 -11.666 4734.5 -10.328 106.6767 120.487
April 29.06 31.68 8.270 5165.9 8.351 69.73781 69.064
May 31.68 30.14 -5.109 4870.1 -6.074 36.89101 31.034
Jun 30.14 24.34 -23.829 4040.55 -20.531 421.5064 489.226
July 24.34 26.55 8.324 4332.95 6.748 45.53941 56.172
Aug 26.55 26.76 0.785 4360 0.620 0.384912 0.487
Sep 26.76 23.36 -14.555 3921.2 -11.190 125.2262 162.875
Oct 23.36 17.84 -30.942 2885.6 -35.889 1287.988 1110.453
Nov 17.84 16.71 -6.762 2755.1 -4.737 22.43604 32.031
Dec 16.71 18.16 7.985 2959.15 6.896 47.54876 55.058
2009Jan 18.16 17.33 -4.789 2874.8 -2.934 8.609043 14.053
Feb 17.33 16.66 -4.022 2763.65 -4.022 16.17532 16.174
March 16.66 18.03 7.598 3020.95 8.517 72.5425 64.717
April 18.03 21.14 14.711 3473.95 13.040 170.0393 191.836
May 21.14 27.6 23.406 4448.95 21.915 480.2796 512.945
June 27.6 27.48 -0.437 4291.1 -3.679 13.53169 1.606
July 27.48 30.05 8.552 4636.45 7.449 55.48144 63.703
Aug 30.05 30.56 1.669 4662.1 0.550 0.302699 0.918
Sep 30.56 32.25 5.240 5083.95 8.298 68.85153 43.482
Oct 32.25 31.06 -3.831 4711.7 -7.901 62.41862 30.269
Nov 31.06 32.98 5.822 5032.7 6.378 40.68253 37.133
Dec 32.98 29.27 -12.675 5201.05 3.237 10.47717 -41.027
2010 Jan 29.27 27.69 -5.706 4882.05 -6.534 42.69499 37.284
 Feb 27.69 28.07 1.354 4922.3 0.818 0.668645 1.107
March 28.07 30 6.433 5249.1 6.226 38.76095 40.053
April 30 30.49 1.607 5278 0.548 0.299817 0.880
May 30.49 29.7 -2.660 5086.3 -3.769 14.20497 10.025
Jun 29.7 31.35 5.263 5312.5 4.258 18.12956 22.410
July 31.35 31.76 1.291 5367.6 1.027 1.053763 1.325
Aug 31.76 32.31 1.702 5402.4 0.644 0.41494 1.097
Sep 32.31 35.04 7.791 6029.95 10.407 108.3102 81.084
Oct 35.04 34.97 -0.200 6017.7 -0.204 0.041439 0.041
Nov 34.97 33.95 -3.004 5862.7 -2.644 6.989853 7.943
Dec 33.95 34.64 1.992 6134.5 4.431 19.63092 8.826
Table 4.3

Table showing the calculations of Return and Beta of SBI Equity fund and S&P CNX
NIFTY

N = 48   ΣXY = 4245.746

ΣX =   σ = 9.932
- 0.681

21.717

ΣY =   β = 0.975

ΣY
² = 4363.880        

Table 4.3.1
Table showing the Standard deviation and Beta of SBI Equity fund

Inference: As the β is less than 1 it can be said that the scheme is less risky. For One percent
change in the market index causes 0.975 percent change in the scheme return. The scheme is
less volatile compared to the market. The Standard Deviation of the scheme is 9.932 which
means the scheme’s returns vary with the index to the extent of 9.932.
4.4 TATA EQUITY FUND

Total
Opening Closing Index index
Month (RS) (RS) Returns(X) Return return(Y) Y*Y X*Y
2007 Jan 11.3391 11.1875 -1.355 4082.7 1.844 3.400 -2.499
Feb 11.1875 10.7005 -4.551 3745.3 -9.009 81.155 41.000
March 10.7005 10.6376 -0.591 3821.55 1.995 3.981 -1.180
April 10.6376 10.8742 2.176 4087.9 6.516 42.453 14.177
May 10.8742 10.9562 0.748 4295.8 4.840 23.422 3.622
June 10.9562 11.0018 0.414 4318.3 0.521 0.271 0.216
July 11.0018 11.1327 1.176 4528.85 4.649 21.614 5.466
Aug 11.1327 11.237 0.928 4464 -1.453 2.110 -1.348
Sep 11.237 12.4402 9.672 5021.35 11.100 123.201 107.354
Oct 12.4402 13.3591 6.878 5900.65 14.902 222.062 102.501
Nov 13.3591 13.5389 1.328 5762.75 -2.393 5.726 -3.178
Dec 13.5389 12.9707 -4.381 6138.6 6.123 37.488 -26.822
2008 Jan 12.9707 11.5604 -12.199 5137.45 -19.487 379.755 237.733
Feb 11.5604 11.4083 -1.333 5223.5 1.647 2.714 -2.196
March 11.4083 10.2839 -10.934 4734.5 -10.328 106.676 112.927
April 10.2839 11.0712 7.111 5165.9 8.351 69.738 59.385
May 11.0712 10.7926 -2.581 4870.1 -6.074 36.891 15.679
June 10.7926 9.1972 -17.347 4040.55 -20.531 421.506 356.136
July 9.1972 9.5913 4.109 4332.95 6.748 45.539 27.728
Aug 9.5913 9.6235 0.335 4360 0.620 0.385 0.208
Sep 9.6235 8.5336 -12.772 3921.2 -11.191 125.227 142.924
Oct 8.5336 6.9419 -22.929 2885.6 -35.889 1287.992 822.885
Nov 6.9419 6.7474 -2.883 2755.1 -4.737 22.436 13.654
Dec 6.7474 7.2343 6.730 2959.15 6.896 47.549 46.410
2009Jan 7.2343 6.885 -5.073 2874.8 -2.934 8.609 14.886
Feb 6.885 6.668 -3.254 2763.65 -4.022 16.175 13.089
March 6.668 7.0448 5.349 3020.95 8.517 72.542 45.555
April 7.0448 7.7846 9.503 3473.95 13.040 170.039 123.923
May 7.7846 9.945 21.723 4448.95 21.915 480.279 476.076
June 9.945 10.2796 3.255 4291.1 -3.679 13.532 -11.974
July 10.2796 11.1038 7.423 4636.45 7.449 55.481 55.289
Aug 11.1038 11.2265 1.093 4662.1 0.550 0.303 0.601
Sep 11.2265 12.0124 6.542 5083.95 8.298 68.852 54.287
Oct 12.0124 11.8674 -1.222 4711.7 -7.901 62.419 9.653
Nov 11.8674 12.292 3.454 5032.7 6.378 40.683 22.032
Dec 12.292 12.5605 2.138 5201.05 3.237 10.477 6.919
2010 Jan 12.5605 11.9895 -4.763 4882.05 -6.534 42.695 31.119
Feb 11.9895 12.0427 0.442 4922.3 0.818 0.669 0.361
March 12.0427 12.5302 3.891 5249.1 6.226 38.761 24.222
April 12.5302 12.9159 2.986 5278 0.548 0.300 1.635
May 12.9159 12.7656 -1.177 5086.3 -3.769 14.205 4.437
June 12.7656 13.3465 4.352 5312.5 4.258 18.130 18.532
July 13.3465 13.6951 2.545 5367.6 1.027 1.054 2.613
Aug 13.6951 13.6893 -0.042 5402.4 0.644 0.415 -0.027
 Sep 13.6893 13.4474 -1.799 6029.95 10.407 108.310 -18.721
Oct 13.4474 13.4719 0.182 6017.7 -0.204 0.041 -0.037
Nov 13.4719 13.1802 -2.213 5862.7 -2.644 6.990 5.851
Dec 13.1802 13.5115 2.452 6134.5 4.431 19.631 10.864
Table 4.4

Table showing the calculations of Return and Beta of SBI Equity fund and S&P CNX
NIFTY

N = 48   ΣXY = 2963.969

ΣX =   Σ = 7.179
5.537

21.717

ΣY =   Β = 0.680

ΣY
² = 4363.880        

Table 4.4.1
Table showing the Standard deviation and Beta of Tata Equity fund

Inference: As the β is less than 1 it can be said that the scheme is less risky. For One percent
change in the market index causes 0.680 percent change in the scheme return. The scheme is
less volatile compared to the market. The Standard Deviation of the scheme is 7.179 which
means the scheme’s returns vary with the index to the extent of 7.179.
4.5 HDFC INCOME FUND

Total
Opening Closing Returns(X Index index
Month (RS) (RS) ) Return return(Y) Y*Y X*Y
2007 Jan 10.1863 10.1996 0.130 4082.7 1.844 3.400 0.240
Feb 10.1996 10.1109 -0.877 3745.3 -9.009 81.155 7.903
March 10.1109 10.1151 0.042 3821.55 1.9953 3.981 0.083
April 10.1151 10.1616 0.458 4087.9 6.516 42.453 2.982
May 10.1616 10.1989 0.366 4295.8 4.840 23.422 1.770
June 10.1989 10.1366 -0.615 4318.3 0.521 0.271 -0.320
July 10.1366 10.4455 2.957 4528.85 4.649 21.614 13.749
Aug 10.4455 10.3811 -0.620 4464 -1.453 2.110 0.901
Sep 10.3811 10.3099 -0.691 5021.35 11.100 123.201 -7.665
Oct 10.3099 10.4816 1.638 5900.65 14.902 222.062 24.411
Nov 10.4816 10.5494 0.643 5762.75 -2.393 5.726 -1.538
Dec 10.5494 10.46 -0.855 6138.6 6.123 37.488 -5.233
2008 Jan 10.46 10.6649 1.921 5137.45 -19.487 379.755 -37.440
Feb 10.6649 10.6607 -0.039 5223.5 1.647 2.714 -0.065
March 10.6607 10.2828 -3.675 4734.5 -10.328 106.676 37.958
April 10.2828 10.3023 0.189 5165.9 8.351 69.738 1.581
May 10.3023 10.3187 0.159 4870.1 -6.074 36.891 -0.965
June 10.3187 10.1947 -1.216 4040.55 -20.531 421.506 24.972
July 10.1947 10.1695 -0.248 4332.95 6.748 45.539 -1.672
Aug 10.1695 10.22 0.494 4360 0.620 0.385 0.307
Sep 10.22 10.1692 -0.500 3921.2 -11.191 125.227 5.590
Oct 10.1692 10.0719 -0.966 2885.6 -35.889 1287.992 34.670
Nov 10.0719 10.4256 3.393 2755.1 -4.737 22.436 -16.070
Dec 10.4256 11.2787 7.564 2959.15 6.896 47.549 52.157
2009Jan 11.2787 10.8824 -3.642 2874.8 -2.934 8.609 10.685
Feb 10.8824 10.8928 0.095 2763.65 -4.022 16.175 -0.384
March 10.8928 10.6725 -2.064 3020.95 8.517 72.542 -17.581
April 10.6725 11.1785 4.527 3473.95 13.040 170.039 59.026
May 11.1785 10.9785 -1.822 4448.95 21.915 480.279 -39.924
June 10.9785 10.951 -0.251 4291.1 -3.679 13.532 0.924
July 10.951 10.9562 0.047 4636.45 7.449 55.481 0.354
Aug 10.9562 10.8523 -0.957 4662.1 0.550 0.303 -0.527
Sep 10.8523 10.8357 -0.153 5083.95 8.298 68.852 -1.271
Oct 10.8357 10.8544 0.172 4711.7 -7.901 62.419 -1.361
Nov 10.8544 11.0324 1.613 5032.7 6.378 40.683 10.291
Dec 11.0324 10.8424 -1.752 5201.05 3.237 10.477 -5.672
2010 Jan 10.8424 10.9037 0.562 4882.05 -6.534 42.695 -3.673
Feb 10.9037 10.8083 -0.883 4922.3 0.818 0.669 -0.722
March 10.8083 10.8334 0.232 5249.1 6.226 38.761 1.442
April 10.8334 10.9014 0.624 5278 0.548 0.300 0.342
May 10.9014 11.0134 1.017 5086.3 -3.769 14.205 -3.833
June 11.0134 10.8815 -1.212 5312.5 4.258 18.130 -5.161
July 10.8815 10.8668 -0.135 5367.6 1.027 1.054 -0.139
Aug 10.8668 10.9256 0.538 5402.4 0.644 0.415 0.347
 Sep 10.9256 10.8696 -0.515 6029.95 10.407 108.310 -5.362
Oct 10.8696 10.8146 -0.509 6017.7 -0.204 0.041 0.104
Nov 10.8146 10.8807 0.607 5862.7 -2.644 6.990 -1.606
Dec 10.8807 10.9239 0.395 6134.5 4.431 19.631 1.752

Table 4.5

Table showing the calculations of Return and Beta of SBI Equity fund and S&P CNX
NIFTY

N = 48   ΣXY = 136.352

ΣX =   σ = 1.825
6.187

21.717

ΣY =   β = 0.031

ΣY
² = 4363.880        

Table 4.5.1
Table showing the Standard deviation and Beta of Tata Equity fund

Inference: As the β is less than 1 it can be said that the scheme is less risky. For One percent
change in the market index causes 0.031 percent change in the scheme return. The scheme is
less volatile compared to the market. The standard deviation of the scheme is 1.825 which
means there is almost no variation in the returns with the index.
4.6 JM FINANCIAL INCOME FUND

Total
Opening Closing Returns(X Index index
Month (RS) (RS) ) Return return(Y) Y*Y X*Y
2007 Jan 10.291 10.3153 0.236 4082.7 1.844 3.400 0.434
Feb 10.3153 10.332 0.162 3745.3 -9.009 81.155 -1.456
March 10.332 10.1704 -1.589 3821.55 1.995 3.981 -3.170
April 10.1704 10.2144 0.431 4087.9 6.516 42.453 2.807
May 10.2144 10.2588 0.433 4295.8 4.840 23.422 2.095
June 10.2588 10.3021 0.420 4318.3 0.521 0.271 0.219
July 10.3021 10.3071 0.049 4528.85 4.649 21.614 0.226
Aug 10.3071 10.335 0.270 4464 -1.453 2.110 -0.392
Sep 10.335 10.3997 0.622 5021.35 11.100 123.201 6.905
Oct 10.3997 10.5155 1.101 5900.65 14.902 222.062 16.410
Nov 10.5155 10.5955 0.755 5762.75 -2.393 5.726 -1.807
Dec 10.5955 10.6972 0.951 6138.6 6.123 37.488 5.821
2008 Jan 10.6972 10.7563 0.549 5137.45 -19.487 379.755 -10.707
Feb 10.7563 10.6914 -0.607 5223.5 1.647 2.714 -1.000
March 10.6914 10.6189 -0.683 4734.5 -10.328 106.676 7.052
April 10.6189 10.6572 0.359 5165.9 8.351 69.738 3.001
May 10.6572 10.5629 -0.893 4870.1 -6.074 36.891 5.422
June 10.5629 10.4103 -1.466 4040.55 -20.531 421.506 30.095
July 10.4103 10.3582 -0.503 4332.95 6.748 45.539 -3.394
Aug 10.3582 10.1773 -1.777 4360 0.620 0.385 -1.103
Sep 10.1773 10.2098 0.318 3921.2 -11.191 125.227 -3.562
Oct 10.2098 10.2109 0.011 2885.6 -35.889 1287.992 -0.387
Nov 10.2109 10.2911 0.779 2755.1 -4.737 22.436 -3.691
Dec 10.2911 10.4708 1.716 2959.15 6.896 47.549 11.834
2009Jan 10.4708 10.4263 -0.427 2874.8 -2.934 8.609 1.252
Feb 10.4263 10.2178 -2.041 2763.65 -4.022 16.175 8.207
March 10.2178 10.0818 -1.349 3020.95 8.517 72.542 -11.489
April 10.0818 10.0409 -0.407 3473.95 13.040 170.039 -5.312
May 10.0409 10.0056 -0.353 4448.95 21.915 480.279 -7.732
June 10.0056 9.9948 -0.108 4291.1 -3.679 13.532 0.397
July 9.9948 9.9516 -0.434 4636.45 7.449 55.481 -3.233
Aug 9.9516 9.8744 -0.782 4662.1 0.550 0.303 -0.430
Sep 9.8744 9.8728 -0.016 5083.95 8.298 68.852 -0.134
Oct 9.8728 9.8513 -0.218 4711.7 -7.901 62.419 1.724
Nov 9.8513 9.901 0.502 5032.7 6.378 40.683 3.202
Dec 9.901 9.9513 0.505 5201.05 3.237 10.477 1.636
2010 Jan 9.9513 9.9392 -0.122 4882.05 -6.534 42.695 0.795
Feb 9.9392 9.9283 -0.110 4922.3 0.818 0.669 -0.090
March 9.9283 9.9865 0.583 5249.1 6.226 38.761 3.628
April 9.9865 10.0492 0.624 5278 0.548 0.300 0.342
May 10.0492 10.148 0.974 5086.3 -3.769 14.205 -3.669
June 10.148 10.174 0.256 5312.5 4.258 18.130 1.088
 July 10.174 10.1932 0.188 5367.6 1.027 1.054 0.193
Aug 10.1932 10.2386 0.443 5402.4 0.644 0.415 0.286
Sep 10.2386 10.257 0.179 6029.95 10.407 108.310 1.867
Oct 10.257 10.2579 0.009 6017.7 -0.204 0.041 -0.002
Nov 10.2579 10.2915 0.326 5862.7 -2.644 6.990 -0.863
Dec 10.2915 10.3012 0.094 6134.5 4.431 19.631 0.417

Table 4.6

Table showing the calculations of Return and Beta of JM Financial Equity and S&P
CNX NIFTY

N = 48   ΣXY = 53.732

ΣX =   σ = 0.766
-0.038

21.717

ΣY =   β = 0.012

ΣY² = 4363.880        

Table 4.6.1
Table showing the Standard deviation and Beta of JM Financial Income fund

Inference: As the β is less than 1 it can be said that the scheme is less risky. For One percent
change in the market index causes 0.012 percent change in the scheme return. The scheme is
less volatile compared to the market. The standard deviation of the scheme is 0.766 which
means there is almost no variation in the returns with the index.
4.7 SBI INCOME FUND
Total
Opening Closing Returns(X Index index
Month (RS) (RS) ) Return return(Y) Y*Y X*Y
2007 Jan 10.1877 10.2168 0.285 4082.7 1.844 3.400 0.525
Feb 10.2168 10.221 0.041 3745.3 -9.009 81.155 -0.370
March 10.221 10.0458 -1.744 3821.55 1.995 3.981 -3.480
April 10.0458 10.0526 0.068 4087.9 6.516 42.453 0.441
May 10.0526 10.1275 0.740 4295.8 4.840 23.422 3.579
June 10.1275 10.123 -0.044 4318.3 0.521 0.271 -0.023
July 10.123 10.3542 2.233 4528.85 4.649 21.614 10.381
Aug 10.3542 10.348 -0.060 4464 -1.453 2.110 0.087
Sep 10.348 10.4162 0.655 5021.35 11.100 123.201 7.267
Oct 10.4162 10.163 -2.491 5900.65 14.902 222.062 -37.126
Nov 10.163 10.2106 0.466 5762.75 -2.393 5.726 -1.116
Dec 10.2106 10.3064 0.930 6138.6 6.123 37.488 5.691
2008 Jan 10.3064 10.4499 1.373 5137.45 -19.487 379.755 -26.760
Feb 10.4499 10.388 -0.596 5223.5 1.647 2.714 -0.982
March 10.388 10.2101 -1.742 4734.5 -10.328 106.676 17.996
April 10.2101 10.1989 -0.110 5165.9 8.351 69.738 -0.917
May 10.1989 10.2138 0.146 4870.1 -6.074 36.891 -0.886
June 10.2138 10.0777 -1.351 4040.55 -20.531 421.506 27.727
July 10.0777 10.0803 0.026 4332.95 6.748 45.539 0.174
Aug 10.0803 10.1173 0.366 4360 0.620 0.385 0.227
Sep 10.1173 10.0602 -0.568 3921.2 -11.191 125.227 6.352
Oct 10.0602 10.0616 0.014 2885.6 -35.889 1287.992 -0.499
Nov 10.0616 10.2329 1.674 2755.1 -4.737 22.436 -7.929
Dec 10.2329 11.1184 7.964 2959.15 6.896 47.549 54.918
2009Jan 11.1184 10.5633 -5.255 2874.8 -2.934 8.609 15.419
Feb 10.5633 10.5317 -0.300 2763.65 -4.022 16.175 1.207
March 10.5317 10.1752 -3.504 3020.95 8.517 72.542 -29.841
April 10.1752 10.4749 2.861 3473.95 13.040 170.039 37.309
May 10.4749 10.3277 -1.425 4448.95 21.915 480.279 -31.236
June 10.3277 10.4228 0.912 4291.1 -3.679 13.532 -3.356
July 10.4228 10.4568 0.325 4636.45 7.449 55.481 2.422
Aug 10.4568 10.3718 -0.820 4662.1 0.550 0.303 -0.451
Sep 10.3718 10.2452 -1.236 5083.95 8.298 68.852 -10.253
Oct 10.2452 10.257 0.115 4711.7 -7.901 62.419 -0.909
Nov 10.257 10.3689 1.079 5032.7 6.378 40.683 6.883
Dec 10.3689 10.3381 -0.298 5201.05 3.237 10.477 -0.964
2010 Jan 10.3381 10.4128 0.717 4882.05 -6.534 42.695 -4.688
Feb 10.4128 10.3836 -0.281 4922.3 0.818 0.669 -0.230
March 10.3836 10.516 1.259 5249.1 6.226 38.761 7.839
April 10.516 10.593 0.727 5278 0.548 0.300 0.398
May 10.593 10.6186 0.241 5086.3 -3.769 14.205 -0.909
June 10.6186 10.6744 0.523 5312.5 4.258 18.130 2.226
July 10.6744 10.6 -0.702 5367.6 1.027 1.054 -0.721
Aug 10.6 10.6932 0.872 5402.4 0.644 0.415 0.561
 Sep 10.6932 10.5452 -1.403 6029.95 10.407 108.310 -14.606
Oct 10.5452 10.556 0.102 6017.7 -0.204 0.041 -0.021
Nov 10.556 10.5931 0.350 5862.7 -2.644 6.990 -0.926
Dec 10.5931 10.6427 0.466 6134.5 4.431 19.631 2.065
Table 4.7
Table showing the calculations of Return and Beta of SBI Income fund and S&P CNX
NIFTY

N = 48   ΣXY = 32.495

ΣX =   σ = 1.793
3.600

21.717

ΣY =   β = .0007089

ΣY
² = 4363.880        

Table 4.7.1
Table showing the Standard deviation and Beta of SBI Income fund

Inference: As the β is less than 1 it can be said that the scheme is less risky. For One percent
change in the market index causes 0.0007 percent change in the scheme return. The scheme is
less volatile compared to the market. The standard deviation of the scheme is 1.793 which
means there is almost no variation in the returns with the index.
4.8 TATA EQUITY FUND
Month Opening Closing Returns(X) Index Total Y*Y X*Y
(RS) (RS) Return index
return(Y)
2007 Jan 14.3698 14.3996 0.207 4082.7 1.844 3.400 0.382
Feb 14.3996 14.419 0.135 3745.3 -9.009 81.155 -1.212
March 14.419 14.486 0.463 3821.55 1.995 3.981 0.923
April 14.486 14.5898 0.711 4087.9 6.516 42.453 4.636
May 14.5898 14.6816 0.625 4295.8 4.840 23.422 3.026
June 14.6816 14.7596 0.528 4318.3 0.521 0.271 0.275
July 14.7596 15.0886 2.180 4528.85 4.649 21.614 10.137
Aug 15.0886 14.9587 -0.868 4464 -1.453 2.110 1.262
Sep 14.9587 15.0705 0.742 5021.35 11.100 123.201 8.234
Oct 15.0705 15.2275 1.031 5900.65 14.902 222.062 15.364
Nov 15.2275 15.3076 0.523 5762.75 -2.393 5.726 -1.252
Dec 15.3076 15.49 1.178 6138.6 6.123 37.488 7.210
2008 Jan 15.49 15.7355 1.560 5137.45 -19.487 379.755 -30.403
Feb 15.7355 15.7798 0.281 5223.5 1.647 2.714 0.462
March 15.7798 15.7282 -0.328 4734.5 -10.328 106.676 3.388
April 15.7282 15.8228 0.598 5165.9 8.351 69.738 4.993
May 15.8228 15.868 0.285 4870.1 -6.074 36.891 -1.730
June 15.868 15.6349 -1.491 4040.55 -20.531 421.506 30.609
July 15.6349 15.6163 -0.119 4332.95 6.748 45.539 -0.804
Aug 15.6163 15.7092 0.591 4360 0.620 0.385 0.367
Sep 15.7092 15.8684 1.003 3921.2 -11.191 125.227 -11.227
Oct 15.8684 15.99 0.760 2885.6 -35.889 1287.992 -27.292
Nov 15.99 16.3294 2.078 2755.1 -4.737 22.436 -9.845
Dec 16.3294 17.5948 7.192 2959.15 6.896 47.549 49.592
2009Jan 17.5948 16.7786 -4.865 2874.8 -2.934 8.609 14.273
Feb 16.7786 16.6961 -0.494 2763.65 -4.022 16.175 1.987
March 16.6961 16.4612 -1.427 3020.95 8.517 72.542 -12.154
April 16.4612 17.0083 3.217 3473.95 13.040 170.039 41.945
May 17.0083 16.7052 -1.814 4448.95 21.915 480.279 -39.763
June 16.7052 16.7213 0.096 4291.1 -3.679 13.532 -0.354
July 16.7213 16.6389 -0.495 4636.45 7.449 55.481 -3.689
Aug 16.6389 16.5137 -0.758 4662.1 0.550 0.303 -0.417
Sep 16.5137 16.4501 -0.387 5083.95 8.298 68.852 -3.208
Oct 16.4501 16.4728 0.138 4711.7 -7.901 62.419 -1.089
Nov 16.4728 16.6508 1.069 5032.7 6.378 40.683 6.819
Dec 16.6508 16.6319 -0.114 5201.05 3.237 10.477 -0.368
2010 Jan 16.6319 16.6805 0.291 4882.05 -6.534 42.695 -1.904
Feb 16.6805 16.5937 -0.523 4922.3 0.818 0.669 -0.428
March 16.5937 16.6395 0.275 5249.1 6.226 38.761 1.714
April 16.6395 16.8505 1.252 5278 0.548 0.300 0.686
May 16.8505 16.98 0.763 5086.3 -3.769 14.205 -2.874
June 16.98 16.9799 -0.001 5312.5 4.258 18.130 -0.003
July 16.9799 16.9206 -0.350 5367.6 1.027 1.054 -0.360
Aug 16.9206 16.9196 -0.006 5402.4 0.644 0.415 -0.004
 Sep 16.9196 17.0173 0.574 6029.95 10.407 108.310 5.975
Oct 17.0173 17.011 -0.037 6017.7 -0.204 0.041 0.008
Nov 17.011 17.0688 0.339 5862.7 -2.644 6.990 -0.895
Dec 17.0688 17.0952 0.154 6134.5 4.431 19.631 0.684

Table 4.8

Table showing the calculations of Return and Beta of SBI Income fund and S&P CNX
NIFTY

N = 48   ΣXY = 63.675

ΣX =   σ = 1.547
0.013

21.717

ΣY =   β = 0.013

ΣY² = 4363.880        

Table 4.8.1
Table showing the Standard deviation and Beta ofTata Income fund

Inference: As the β is less than 1 it can be said that the scheme is less risky. For One percent
change in the market index causes 0.013 percent change in the scheme return. The scheme is
less volatile compared to the market. The Standard Deviation of the scheme is 1.547 which
means there is almost no variation in the returns with the index.
4.9 HDFC Balanced Fund
Total
Opening Closing Returns(X Index index
Month (RS) (RS) ) Return return(Y) Y*Y X*Y
2007 Jan 18.072 17.989 -0.461 4082.7 1.844 3.400 -0.851
Feb 17.989 16.539 -8.767 3745.3 -9.009 81.155 78.980
March 16.539 16.486 -0.321 3821.55 1.995 3.981 -0.641
April 16.486 17.404 5.275 4087.9 6.516 42.453 34.367
May 17.404 18.099 3.840 4295.8 4.840 23.422 18.584
June 18.099 18.258 0.871 4318.3 0.521 0.271 0.454
July 18.258 19.03 4.057 4528.85 4.649 21.614 18.860
Aug 19.03 18.576 -2.444 4464 -1.453 2.110 3.550
Sep 18.576 19.779 6.082 5021.35 11.100 123.201 67.510
Oct 19.779 21.262 6.975 5900.65 14.902 222.062 103.938
Nov 21.262 21.497 1.093 5762.75 -2.393 5.726 -2.616
Dec 21.497 20.572 -4.496 6138.6 6.123 37.488 -27.530
2008 Jan 20.572 19.009 -8.222 5137.45 -19.487 379.755 160.233
Feb 19.009 18.94 -0.364 5223.5 1.647 2.714 -0.600
March 18.94 17.292 -9.530 4734.5 -10.328 106.676 98.434
April 17.292 18.294 5.477 5165.9 8.351 69.738 45.740
May 18.294 17.648 -3.660 4870.1 -6.074 36.891 22.233
June 17.648 15.82 -11.555 4040.55 -20.531 421.506 237.231
July 15.82 16.729 5.434 4332.95 6.748 45.539 36.668
Aug 16.729 17.207 2.778 4360 0.620 0.385 1.723
Sep 17.207 16.022 -7.396 3921.2 -11.191 125.227 82.766
Oct 16.022 12.894 -24.259 2885.6 -35.889 1287.992 870.634
Nov 12.894 12.238 -5.360 2755.1 -4.737 22.436 25.390
Dec 12.238 13.063 6.316 2959.15 6.896 47.549 43.549
2009Jan 13.063 12.78 -2.214 2874.8 -2.934 8.609 6.497
Feb 12.78 10.826 -18.049 2763.65 -4.022 16.175 72.591
March 10.826 11.47 5.615 3020.95 8.517 72.542 47.821
April 11.47 13.04 12.040 3473.95 13.040 170.039 156.999
May 13.04 15.703 16.959 4448.95 21.915 480.279 371.651
June 15.703 15.921 1.369 4291.1 -3.679 13.532 -5.037
July 15.921 16.861 5.575 4636.45 7.449 55.481 41.526
Aug 16.861 17.004 0.841 4662.1 0.550 0.303 0.463
Sep 17.004 18.325 7.209 5083.95 8.298 68.852 59.816
Oct 18.325 18.215 -0.604 4711.7 -7.901 62.419 4.771
Nov 18.215 18.945 3.853 5032.7 6.378 40.683 24.577
Dec 18.945 19.899 4.794 5201.05 3.237 10.477 15.518
2010 Jan 19.899 19.907 0.040 4882.05 -6.534 42.695 -0.263
Feb 19.907 19.935 0.140 4922.3 0.818 0.669 0.115
March 19.935 18.576 -7.316 5249.1 6.226 38.761 -45.547
April 18.576 19.051 2.493 5278 0.548 0.300 1.365
May 19.051 19.107 0.293 5086.3 -3.769 14.205 -1.105
June 19.107 19.959 4.269 5312.5 4.258 18.130 18.176
July 19.959 20.491 2.596 5367.6 1.027 1.054 2.665
Aug 20.491 20.744 1.220 5402.4 0.644 0.415 0.786
 Sep 20.744 21.865 5.127 6029.95 10.407 108.310 53.357
Oct 21.865 22.466 2.675 6017.7 -0.204 0.041 -0.545
Nov 22.466 22.057 -1.854 5862.7 -2.644 6.990 4.902
Dec 22.057 22.222 0.743 6134.5 4.431 19.631 3.290

Table 4.9

Table showing the calculations of Return and Beta of SBI Income fund and S&P CNX
NIFTY

N = 48   ΣXY = 2752.996

ΣX =   σ = 7.108
9.17

21.717

ΣY =   β = 0.63

ΣY
² = 4363.880        

Table 4.9.1
Table showing the Standard deviation and Beta of HDFC Balanced fund

Inference: As the β is less than 1 it can be said that the scheme is less risky. For One percent
change in the market index causes 0.63 percent change in the scheme return. The scheme is
less volatile compared to the market. The Standard Deviation of the scheme is 7.108 which
means the scheme’s returns vary with the index to the extent of 7.108.
4.10 JM Financial Balanced Fund

Total
Opening Closing Index index
Month (RS) (RS) Returns(X) Return return(Y) Y*Y X*Y
2007 Jan 17.7 17.94 1.338 4082.7 1.844 3.400 2.467
Feb 17.94 16.71 -7.361 3745.3 -9.009 81.155 66.311
March 16.71 16.85 0.831 3821.55 1.995 3.981 1.658
April 16.85 17.85 5.602 4087.9 6.516 42.453 36.502
May 17.85 18.79 5.003 4295.8 4.840 23.422 24.211
June 18.79 19.0314 1.268 4318.3 0.521 0.271 0.661
July 19.0314 20.6637 7.899 4528.85 4.649 21.614 36.725
Aug 20.6637 21.1556 2.325 4464 -1.453 2.110 -3.378
Sep 21.1556 22.9954 8.001 5021.35 11.100 123.201 88.805
Oct 22.9954 24.0288 4.301 5900.65 14.902 222.062 64.088
Nov 24.0288 24.2301 0.831 5762.75 -2.393 5.726 -1.988
Dec 24.2301 25.8466 6.254 6138.6 6.123 37.488 38.293
2008 Jan 25.8466 21.6224 -19.536 5137.45 -19.487 379.755 380.708
Feb 21.6224 21.1992 -1.996 5223.5 1.647 2.714 -3.289
March 21.1992 18.4396 -14.966 4734.5 -10.328 106.676 154.571
April 18.4396 19.949 7.566 5165.9 8.351 69.738 63.185
May 19.949 18.5471 -7.559 4870.1 -6.074 36.891 45.909
June 18.5471 15.7123 -18.042 4040.55 -20.531 421.506 370.411
July 15.7123 16.1076 2.454 4332.95 6.748 45.539 16.561
Aug 16.1076 16.5818 2.860 4360 0.620 0.385 1.774
Sep 16.5818 14.0568 -17.963 3921.2 -11.191 125.227 201.013
Oct 14.0568 10.4547 -34.454 2885.6 -35.889 1287.992 1236.519
Nov 10.4547 10.1863 -2.635 2755.1 -4.737 22.436 12.481
Dec 10.1863 11.16 8.725 2959.15 6.896 47.549 60.163
2009Jan 11.16 10.1637 -9.803 2874.8 -2.934 8.609 28.762
Feb 10.1637 9.704 -4.737 2763.65 -4.022 16.175 19.052
March 9.704 10.2503 5.330 3020.95 8.517 72.542 45.393
April 10.2503 11.8962 13.836 3473.95 13.040 170.039 180.414
May 11.8962 15.4357 22.931 4448.95 21.915 480.279 502.531
June 15.4357 14.9114 -3.516 4291.1 -3.679 13.532 12.934
July 14.9114 15.5953 4.385 4636.45 7.449 55.481 32.664
Aug 15.5953 15.6755 0.512 4662.1 0.550 0.303 0.281
Sep 15.6755 16.6266 5.720 5083.95 8.298 68.852 47.466
Oct 16.6266 15.2733 -8.861 4711.7 -7.901 62.419 70.003
Nov 15.2733 15.9321 4.135 5032.7 6.378 40.683 26.375
Dec 15.9321 16.467 3.248 5201.05 3.237 10.477 10.514
2010 Jan 16.467 15.6837 -4.994 4882.05 -6.534 42.695 32.634
Feb 15.6837 15.4625 -1.431 4922.3 0.818 0.669 -1.170
March 15.4625 15.3273 -0.882 5249.1 6.226 38.761 -5.492
April 15.3273 16.1185 4.909 5278 0.548 0.300 2.688
May 16.1185 15.7096 -2.603 5086.3 -3.769 14.205 9.810
June 15.7096 16.4863 4.711 5312.5 4.258 18.130 20.060
 July 16.4863 16.8911 2.397 5367.6 1.027 1.054 2.460
Aug 16.8911 16.5032 -2.350 5402.4 0.644 0.415 -1.514
Sep 16.5032 17.5233 5.821 6029.95 10.407 108.310 60.585
Oct 17.5233 17.5772 0.307 6017.7 -0.204 0.041 -0.062
Nov 17.5772 16.8445 -4.350 5862.7 -2.644 6.990 11.500
Dec 16.8445 17.2472 2.335 6134.5 4.431 19.631 10.345

Table 4.10

Table showing the calculations of Return and Beta of SBI Income fund and S&P CNX
NIFTY

N = 48   ΣXY = 4012.594

ΣX =   σ = 9.381
-22.205

21.717

ΣY =   β = 0.92

ΣY
² = 4363.880        

Table 4.10.1
Table showing the Standard deviation and Beta of JM Financial Balanced fund

Inference: As the β is less than 1 it can be said that the scheme is less risky. For One percent
change in the market index causes 0.92 percent change in the scheme return. The scheme is
less volatile compared to the market. The Standard Deviation of the scheme is 9.381 which
means the scheme’s returns vary with the index to the extent of 9.381.
4.11 SBI Balanced Fund
Total
Opening Closing Index index
Month (RS) (RS) Returns(X) Return return(Y) Y*Y X*Y
2007 Jan 25.81 26.38 2.161 4082.7 1.844 3.400 3.984
Feb 26.38 24.73 -6.672 3745.3 -9.009 81.155 60.106
March 24.73 24.7 -0.121 3821.55 1.995 3.981 -0.242
April 24.7 26.14 5.509 4087.9 6.516 42.453 35.893
May 26.14 27.45 4.772 4295.8 4.840 23.422 23.096
June 27.45 27.89 1.578 4318.3 0.521 0.271 0.822
July 27.89 28.72 2.890 4528.85 4.649 21.614 13.436
Aug 28.72 28.59 -0.455 4464 -1.453 2.110 0.661
Sep 28.59 31.48 9.180 5021.35 11.100 123.201 101.899
Oct 31.48 35.18 10.517 5900.65 14.902 222.062 156.727
Nov 35.18 31.42 -11.967 5762.75 -2.393 5.726 28.636
Dec 31.42 33.94 7.425 6138.6 6.123 37.488 45.460
2008 Jan 33.94 29.18 -16.313 5137.45 -19.487 379.755 317.887
Feb 29.18 29.22 0.137 5223.5 1.647 2.714 0.226
March 29.22 26.3 -11.103 4734.5 -10.328 106.676 114.673
April 26.3 27.71 5.088 5165.9 8.351 69.738 42.493
May 27.71 26.44 -4.803 4870.1 -6.074 36.891 29.174
June 26.44 22.97 -15.107 4040.55 -20.531 421.506 310.149
July 22.97 23.98 4.212 4332.95 6.748 45.539 28.423
Aug 23.98 24.27 1.195 4360 0.620 0.385 0.741
Sep 24.27 22.27 -8.981 3921.2 -11.191 125.227 100.498
Oct 22.27 18.23 -22.161 2885.6 -35.889 1287.992 795.337
Nov 18.23 17.48 -4.291 2755.1 -4.737 22.436 20.323
Dec 17.48 18.78 6.922 2959.15 6.896 47.549 47.733
2009Jan 18.78 18.12 -3.642 2874.8 -2.934 8.609 10.687
Feb 18.12 17.45 -3.840 2763.65 -4.022 16.175 15.442
March 17.45 18.57 6.031 3020.95 8.517 72.542 51.369
April 18.57 20.98 11.487 3473.95 13.040 170.039 149.791
May 20.98 26.23 20.015 4448.95 21.915 480.279 438.640
June 26.23 26.14 -0.344 4291.1 -3.679 13.532 1.267
July 26.14 27.61 5.324 4636.45 7.449 55.481 39.657
Aug 27.61 27.96 1.252 4662.1 0.550 0.303 0.689
Sep 27.96 29.69 5.827 5083.95 8.298 68.852 48.350
Oct 29.69 28.4 -4.542 4711.7 -7.901 62.419 35.886
Nov 28.4 24.74 -14.794 5032.7 6.378 40.683 -94.359
Dec 24.74 25.61 3.397 5201.05 3.237 10.477 10.996
2010 Jan 25.61 24.97 -2.563 4882.05 -6.534 42.695 16.747
Feb 24.97 24.7 -1.093 4922.3 0.818 0.669 -0.894
March 24.7 26 5.000 5249.1 6.226 38.761 31.129
April 26 26.48 1.813 5278 0.548 0.300 0.993
May 26.48 25.53 -3.721 5086.3 -3.769 14.205 14.025
June 25.53 26.4 3.295 5312.5 4.258 18.130 14.032
July 26.4 26.93 1.968 5367.6 1.027 1.054 2.020
Aug 26.93 27.13 0.737 5402.4 0.644 0.415 0.475
 Sep 27.13 28.84 5.929 6029.95 10.407 108.310 61.707
Oct 28.84 28.976 0.469 6017.7 -0.204 0.041 -0.096
Nov 28.976 28.45 -1.849 5862.7 -2.644 6.990 4.888
Dec 28.45 28.81 1.250 6134.5 4.431 19.631 5.536

Table 4.11

Table showing the calculations of Return and Beta of SBI Balanced fund and S&P
CNX NIFTY

N = 48   ΣXY = 3137.113

ΣX =   σ = 7.784
-2.980

21.717

ΣY =   β = 0.721

ΣY
² = 4363.880        

Table 4.11.1
Table showing the Standard deviation and Beta of SBI Balanced fund

Inference: As the β is less than 1 it can be said that the scheme is less risky. For One percent
change in the market index causes 0.721 percent change in the scheme return. The scheme is
less volatile compared to the market. The Standard Deviation of the scheme is 7.784 which
means the scheme’s returns vary with the index to the extent of 7.784.
4.12 Tata Balanced Fund

Total
Opening Closing Index index
Month (RS) (RS) Returns(X) Return return(Y) Y*Y X*Y
2007 Jan 36.4971 37.3989 2.411 4082.7 1.844 3.400 4.446
Feb 37.3989 35.6155 -5.007 3745.3 -9.009 81.155 45.109
March 35.6155 35.969 0.983 3821.55 1.995 3.981 1.961
April 35.969 38.2376 5.933 4087.9 6.516 42.453 38.656
May 38.2376 40.2662 5.038 4295.8 4.840 23.422 24.382
June 40.2662 41.3435 2.606 4318.3 0.521 0.271 1.358
July 41.3435 40.5855 -1.868 4528.85 4.649 21.614 -8.683
Aug 40.5855 40.5888 0.008 4464 -1.453 2.110 -0.012
Sep 40.5888 44.1081 7.979 5021.35 11.100 123.201 88.562
Oct 44.1081 50.3854 12.459 5900.65 14.902 222.062 185.654
Nov 50.3854 51.1117 1.421 5762.75 -2.393 5.726 -3.400
Dec 51.1117 53.0234 3.605 6138.6 6.123 37.488 22.075
2008 Jan 53.0234 46.5737 -13.848 5137.45 -19.487 379.755 269.867
Feb 46.5737 45.6159 -2.100 5223.5 1.647 2.714 -3.459
March 45.6159 40.9358 -11.433 4734.5 -10.328 106.676 118.082
April 40.9358 43.1337 5.096 5165.9 8.351 69.738 42.553
May 43.1337 41.8192 -3.143 4870.1 -6.074 36.891 19.092
June 41.8192 36.0312 -16.064 4040.55 -20.531 421.506 329.801
July 36.0312 37.5443 4.030 4332.95 6.748 45.539 27.197
Aug 37.5443 38.0232 1.259 4360 0.620 0.385 0.781
Sep 38.0232 34.5912 -9.922 3921.2 -11.191 125.227 111.028
Oct 34.5912 28.3164 -22.160 2885.6 -35.889 1287.992 795.277
Nov 28.3164 27.4191 -3.273 2755.1 -4.737 22.436 15.501
Dec 27.4191 29.4827 6.999 2959.15 6.896 47.549 48.265
2009Jan 29.4827 28.4476 -3.639 2874.8 -2.934 8.609 10.676
Feb 28.4476 28.175 -0.968 2763.65 -4.022 16.175 3.891
March 28.175 29.5963 4.802 3020.95 8.517 72.542 40.902
April 29.5963 31.1984 5.135 3473.95 13.040 170.039 66.963
May 31.1984 39.081 20.170 4448.95 21.915 480.279 442.029
June 39.081 39.5149 1.098 4291.1 -3.679 13.532 -4.039
July 39.5149 42.1075 6.157 4636.45 7.449 55.481 45.862
Aug 42.1075 43.4335 3.053 4662.1 0.550 0.303 1.680
Sep 43.4335 46.2956 6.182 5083.95 8.298 68.852 51.298
Oct 46.2956 45.8419 -0.990 4711.7 -7.901 62.419 7.819
Nov 45.8419 48.7342 5.935 5032.7 6.378 40.683 37.854
Dec 48.7342 50.0035 2.538 5201.05 3.237 10.477 8.216
2010 Jan 50.0035 48.4083 -3.295 4882.05 -6.534 42.695 21.532
Feb 48.4083 48.8594 0.923 4922.3 0.818 0.669 0.755
March 48.8594 47.9525 -1.891 5249.1 6.226 38.761 -11.775
April 47.9525 48.7766 1.690 5278 0.548 0.300 0.925
May 48.7766 47.8289 -1.981 5086.3 -3.769 14.205 7.468
June 47.8289 49.7702 3.901 5312.5 4.258 18.130 16.608
 July 49.7702 50.4418 1.331 5367.6 1.027 1.054 1.367
Aug 50.4418 50.8809 0.863 5402.4 0.644 0.415 0.556
Sep 50.8809 53.9264 5.648 6029.95 10.407 108.310 58.775
Oct 53.9264 54.1237 0.365 6017.7 -0.204 0.041 -0.074
Nov 54.1237 53.5627 -1.047 5862.7 -2.644 6.990 2.769
Dec 53.5627 54.0398 0.883 6134.5 4.431 19.631 3.912

Table 4.12

Table showing the calculations of Return and Beta of Tata Balanced Fund and S&P
CNX NIFTY

N = 48   ΣXY = 2990.061

ΣX =   σ = 6.967
27.873

21.717

ΣY =   β = 0.684

ΣY
² = 4363.880        

Table 4.12.1
Table showing the Standard deviation and Beta of Tata Balanced fund

Inference: As the β is less than 1 it can be said that the scheme is less risky. For One percent
change in the market index causes 0.684 percent change in the scheme return. The scheme is
less volatile compared to the market. The Standard Deviation of the scheme is 6.967 which
means the scheme’s returns vary with the index to the extent of 6.967.
4.13 Ranking of the Equity schemes based on Treynor, Sharpe and Jensen measures

Rank
Rank Rank according
accordin accordin to
g to Sharpe g to
Sr Mutual Fund Treynor Treynor measur Sharpe Jensen Jensen
No Company measure measure e measure measure measure

1 HDFC - 9.859 3 -0.894 2 -14.915 2

2 SBI - 8.39 2 -2.255 3 -22.043 3

3 JM Financial - 39.932 4 -3.978 4 -60.755 4

5 TATA - 2.887 1 -0.273 1 -11.631 1

Table 4.13

Inference:According to Treynor ratio Tata Equity fund is Ranked 1 whereas SBI and HDFC
equity fund are Ranked 2 and 3 Respectively.According to sharpe’s and jenson measure Tata
Equity fund is ranked 1 whereas HDFC and SBI are ranked 2 and 3 respectively.
4.14 Ranking of the Income schemes based on Treynor, Sharpe and Jensen measures

Rank
Rank Rank according
according according to
to Sharpe to Jensen
Sl Mutual Fund Treynor Treynor measur Sharpe measur Jensen
No Company measure measure e measure e measure

1 HDFC -42.35 2 - 0.719 2 -1.754 2

2 SBI - 550.14 3 - 2.175 3 -4.001 3

3 JM Financial -628.16 4 - 9.854 4 -7.709 4

5 TATA 712.615 1 5.988 1 9.079 1

Table 4.14

Inference:According to treynor,sharpe and jenson measure Tata Income fund is Ranked 1

whereas Hdfc Income fund is ranked 2 followed by SBI income fund.
4.15 Ranking of the Balanced schemes based on Treynor, Sharpe and Jensen measures

Table 4.15

Rank
Rank Rank according
accordin accordin to
Mutual g to g to
Sr Fund Treynor Treynor Sharpe Sharpe Jensen Jensen
No Company measure measure measure measure measure measure

1 HDFC 2.651 2 0.235 2 -7.287 2

2 SBI -14.535 3 -1.346 3 -20.730 3

3 JM Financial -32.288 4 -3.167 4 -42.785 4

5 TATA 29.785 1 2.924 1 10.649 1

Inference: According to Treynor,Sharpe,Jenson measure Tata Balanced fund is ranked

1,HDFC balanced fund is ranked 2 and SBI balanced fund is ranked 3
 CHAPTER 5

CONCLUSION

5.1 SUMMARY OF FINDINGS

The research project was done about Four Asset Management Companies and the data
collected for the project was for a period of four years i.e. from Jan 2007 to Dec 2010. And
on the collected data, study was done and the following were the findings:

Equity Scheme Income Scheme Balanced Scheme

Name of the Mutual Standard Beta Standard Beta Standard Beta

fund Company deviation deviation deviation

HDFC 10.265 0.931 1.825 0.031 7.108 0.684

JM Financial 11.264 1.122 0.766 0.012 9.381 0.92

SBI 9.932 0.975 1.793 0.0007 7.784 0.721

TATA 7.179 0.680 1.547 0.013 6.967 0.63

In the Equity Scheme sector JM Financial has the highest beta of 1.122 as against the
Tata which has lowest beta of 0.680. HDFC ,SBI, TATA are called defensive assets, the
funds having beta less than 1. JM Financial is aggressive asset whose beta is more than 1.
None of the above five schemes are risk free assets whose beta is zero.
In the Balanced Scheme sector JM Financial has the highest beta of 0.92 as against
the Tata has lowest beta of 0.63. Beta measures the risk (volatility) of an individual asset
relative to the market portfolio. JM Financial, SBI, HDFC & TATA are called defensive
assets, the funds having beta less than 1. None of the above five schemes are risk free assets
whose beta is zero.

In the Income Scheme sector hdfc has the highest beta of 0.031 as against the SBI
which have lowest beta of .0007.HDFC, JM Financial, SBI & TATA are called defensive
assets, the funds having beta less than 1. There is no aggressive asset whose beta is more than
1. None of the above five schemes are risk free assets whose beta is zero but the beta of all
the schemes are very near to zero.
According to Treynor,Sharpe’s,Jenson measure Tata Equity,Income and Balanced fund is
ranked 1 , Hdfc Equity,balanced,Income Fund is Ranked 2 and SBI Schemes are ranked 3

5.2 RECOMMENDATIONS:
  In Equity schemes among HDFC Mutual Fund, JM Financial Mutual Fund, SBI
Mutual Fund and TATA Mutual Funds, TATA Mutual fund is performing well.

 In Income schemes among HDFC Mutual Fund, JM Financial Mutual Fund,SBI

Mutual Fund and TATA Mutual Funds, TATA Mutual fund is performing well.

 In Balanced schemes among HDFC Mutual Fund, JM Financial Mutual Fund, SBI
Mutual Fund and TATA Mutual Funds, TATA Mutual fund and Hdfc is performing
well.

5. 3 SUGGESSIONS:

 The company has a good team of equity research still there is scope for further
improvement in equity & Mutual fund research.

 The company has presence in Derivative sector, Insurance (life & nonlife), Wealth
management services. Advanced research technology needs to be adopted to increase
market share.

 In order to increase the client base the company needs to increase the geographic
cover up from metro to semi urban, non metro cities and gradually to rural area.

 The company needs to create finance awareness in the general public (target people)
about the Mutual Fund .

5. 4 CONCLUSIONS:
Indian mutual fund industry has witnessed a lot of ups and down in its history. Despite that it
has been able to successfully assist efficient resources allocation, provide strong support to
the capital market and help investors realizing the benefits of stock market investing. The
growing importance of Indian mutual fund in the market place may be noticed in terms of
increased mobilization of funds and growing number of investor accounts education
regarding various schemes and avenues with their relative benefits compared to other
investment avenues. Requisite training should also be given to financial advisor.
The performance of the mutual fund in the last four years in Equity,Income and Balanced
schemes
TATA Mutual Fund------Out performing.
JM Financial Mutual fund ---- Worst performing.
Return alone should not be considered as the basis of measurement of the
performance of mutual fund scheme, and
It should also include the risk taken by the fund manager because different funds
will have different levels of risk attached to them
Thus the mutual fund brings together a group of people and invests their money in
stocks, bonds, and other securities.