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INTRODUCTION

Mutual Fund is a non-depository, on-banking financial intermediary which acts as important vehicle for bringing wealth holders and deficit units together indirectly. Mutual funds are also suitable for those investors who do not have knowledge of capital market and by investing through a mutual fund it can make use of knowledge of specialized people which the mutual fund employs. PIERCE, JAMES.L

INTRODUCTION TO TITLE
The projects idea to Mutual Fund as the better avenue for investment Mutual Fund is productive package for a lay-investor with limited finances. Common man in India still assumes BANK as a safe door for investment. This Shows that Mutual Funds have not gained a strong foothold in his life. The project creates an awareness that the Mutual Fund is a worthy Investments practice.. The various schemes of Mutual Funds provide the investor with a wide Range of investment options according to his risk bearing capacities and interest, besides they also give a handy return to the investor. The project analysis various schemes of Mutual Fund by taking HDFC, ING VYSYA, LIC, TATA, & UTI. And comparative analysis of various schemes in HDFC, ING VYSYA, LIC, TATA & UTI.

PURPOSE OF STUDY:
The study is basically made to analyses the various schemes to highlight the diversity of investment that mutual funds offer. The study is made to have a comparatives analyses of various companies i.e. HDFC, ING VYSYA, LIC, TATA & UTI. Through the study one would understand how a common man could fruitfully convert savings in to great penny by wisely investing in to the right scheme according to his risk taking abilities.

OBJECTIVES:
The main objectives of the present study are as follows: 1. To determine the ground rules of mutual fund investing. 2. To study the growth of mutual funds in India 3. The objective of doing this project is to make a study of various Investment schemes in the secondary market. 4. To ascertain the various fluctuations in different schemes of Mutual funds.

5. To know how various schemes effects mutual fund investment and its performance taking past records. 6. To assist the community at large in deciding which investment Provides best return considering various points at a time. 7. To study the performance of selected mutual fund schemes (Equity, balanced, liquidity) and their performance in 3 months. 8. To give a brief idea about the benefits available for mutual funds schemes i.e. Equity Fund Scheme, Liquidity Fund Scheme, Balanced Fund Scheme from selected Mutual Funds in the market.

RESEARCH METHODOLOGY
Research can be defined as the search for knowledge or any systematic investigation to establish facts. The primary purpose for applied research (as opposed to basic research) is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe. Research can use the scientific method, but need not do so. Scientific research relies on the application of the scientific method, a harnessing of curiosity. This research provides scientific information and theories for the explanation of the nature and the properties of the world around us. It makes practical applications possible. Scientific research is funded by public authorities, by charitable organizations and by private groups, including many companies. Scientific research can be subdivided into different classifications according to their academic and application disciplines. Artistic research, also seen as 'practice-based research', can take form when creative works are considered both the research and the object of research itself. It is the debatable body of thought which offers an alternative to purely scientific methods in research in its search for knowledge and truth. Historical research is embodied in the scientific method.

The term research is also used to describe an entire collection of information about a particular subject. Research processes
S cien t if ic res earch

Generally, research is understood to follow a certain structural process. Though step order may vary depending on the subject matter and researcher, the following steps are usually part of most formal research, both basic and applied:

Formation of the topic Hypothesis Conceptual definitions Operational definition Gathering of data Analysis of data Test, revising of hypothesis Conclusion, iteration if necessary

A common misunderstanding is that by this method a hypothesis can be proven or tested. Generally a hypothesis is used to make predictions that can be tested by observing the outcome of an experiment. If the outcome is inconsistent with the hypothesis, then the hypothesis is rejected. However, if the outcome is consistent with the hypothesis, the experiment is said to support the hypothesis. This careful language is used because researchers recognize that alternative hypotheses may also be consistent with the observations. In this sense, a hypothesis can never be proven, but rather only supported by surviving rounds of scientific testing and, eventually, becoming widely thought of as true (or better, predictive), but this is not the same as it having been proven.

Artistic Research One of the characteristics of Artistic Research is that it must accept subjectivity as opposed to the classical scientific methods. As such, it is similar to social sciences in using quantitative research and inter subjectivity as tools to apply measurement and critical analysis. Historical method Main article: Historical method The historical method comprises the techniques and guidelines by which historians use historical sources and other evidence to research and then to write history. There are various history guidelines commonly used by historians in their work, under the headings of external criticism, internal criticism, and synthesis. This includes higher criticism and textual criticism. Though items may vary depending on the subject matter and researcher, the following concepts are usually part of most formal historical research:

Identification of origin date Evidence of localization Recognition of authorship Analysis of data

to digout something and to unearth something or unveal something


Identification of integrity Attribution of credibility

Research methods The goal of the research process is to produce new knowledge, which takes three main forms (although, as previously discussed, the boundaries between them may be obscure.):

Exploratory research, which structures and identifies new problems Constructive research, which develops solutions to a problem Empirical research, which tests the feasibility of a solution using empirical evidence

The research room at the New York Public Library, an example of secondary research in progress. Research can also fall into two distinct types:

Primary research Secondary research

In social sciences and later in other disciplines, the following two research methods can be applied, depending on the properties of the subject matter and on the objective of the research:

Qualitative research Quantitative research

Research is often conducted using the hourglass model Structure of Research[1]. The hourglass model starts with a broad spectrum for research, focusing in on the required information through the methodology of the project (like the neck of the hourglass), then expands the research in the form of discussion and results.

Data collection methods Data Collection is an important aspect of any type of research study. Inaccurate data collection can impact the results of a study and ultimately lead to invalid results. Data collection methods for impact evaluation vary along a continuum. At the one end of this continuum are quantitative methods and at the other end of the continuum are Qualitative methods for data collection. Data collection mainly in two types 1) Primary data 2) Secondary data Primary data In primary data collection, you collect the data yourself using methods such as interviews and questionnaires. The key point here is that the data you collect is unique to you and your research and, until you publish, no one else has access to it. There are many methods of collecting primary data and the main methods include:

questionnaires interviews focus group interviews observation case-studies diaries critical incidents Portfolios.

Secondary data

Secondary data is data collected by someone other than the user. Common sources of secondary data for social science include censuses, surveys, organizational records and data collected through qualitative methodologies or qualitative research. Primary data, by contrast, are collected by the investigator conducting the research. Secondary data analysis saves time that would otherwise be spent collecting data and, particularly in the case of quantitative data, provides larger and higher-quality databases than would be unfeasible for any individual researcher to collect on their own. In addition to that, analysts of social and economic change consider secondary data essential, since it is impossible to conduct a new survey that can adequately capture past change and/or developments. Sources of secondary data As is the case in primary research, secondary data can be obtained from two different research strands: Quantitative: Census, housing, social security as well as electoral statistics and other related databases. Qualitative: Semi-structured and structured interviews, focus groups transcripts, field notes, observation records and other personal, research-related documents. A clear benefit of using secondary data is that much of the background work needed has been already been carried out, for example: literature reviews, case studies might have been carried out, published utilized. texts and statistic could have been already used elsewhere, media promotion and personal contacts have also been

SCOPE OF THE STUDY :

1. The study is pertained to five Mutual Funds Sponsored by (AMC) namely HDFC, ING VYSYA, LIC, TATA & UTI. 2. The project report covers the study of Net Asset Value (NAV) of selected mutual fund schemes. 3. The analysis part includes the Net Asset Value (NAV) charts, which gives the clear picture of the present value of the mutual fund company. 4. Due to the time factor only three scheme i.e. Income Scheme, Liquidity Scheme, Balanced Scheme are taken for computation. 5. The study covers only 3 months data starting with 01-12-2009 to 29-02-2010.

PERIOD OF THE STUDY:


The period of the study is taken 13 weekends 01-12-2009 to 29-02-2010. The data is collect the data from 01-12-2009 to 29-02-2010.

DATA ANALYSIS:
To study the currently available schemes are taken the fact sheets available with the Macs. The fact sheet provides the historical data about the various schemes offered by the AMC, investment pattern, dividend history, ratings given, funds manager's credentials, etc. The following schemes in open -Ended category are analyzed. 1. Balanced Scheme 2. Income Scheme 3. Liquidity Scheme. The Mutual Fund Schemes of following AMC'S have been taken for study

BASIS FOR ANALYSIS:


Net Asset Value (NAV) is the best parameter on which the performance of mutual fund can be studied. We have studied the performance of the NAV based on the weekends of the Scheme in terms of appreciation of NAV, issues. We have compared the week end returns of various schemes to get idea about their relative standings.

LIMITATIONS OF THE STUDY :


The concept of Mutual Funds is like an ocean, so a detailed study of each and every component of this concept is not studies because of the limited time constraint. The data colleted for this study are limited to open-ended schemes Study is contained to selective mutual funds only. The study is limited to comparative analysis of three types of scheme. I.e. Liquidity Scheme, Growth Scheme & Balanced Scheme of the selective mutual funds. The data is collected from internet, from the websites of respective AMC, s so the accuracy of facts may be limited. The study is conducted in short period, due to which the study may not be detailed in all aspects. Performance of Net Asset is not given in full details. The observations & conclusions may not applicable in real time industry as the study confined to specific period and usage of limited statistical tools.

SWOT ANALYSIS OF MUTUAL FUNDS STRENGTHS


1. Simplify speed and quality of services offer by mutual fund companies. 2. As on investment tool for the investors to boost their savings. 3. Wide range of investment schemes offered by mutual fund companies to meet various requirements of investors.

WEAKNESS
NAV range doesnt seem to fit in with corporate compensations. There is positioning and pricing problem. Delay is in infrastructure development may dampen the growth rate of NAVs of different schemes. Which in turn affect investors to invest?

Deregulation of interest rates may affect the profitability of companies. Stiff competition from existing mutual fund companies and new entrants.

OPPORTUNITIES
Perceptive changes in life style. Addition of level of new class of entrepreneurs to the board base of middle class of the market. The range of schemes and services offered by mutual fund companies is large enough for all investors to have a slice of cake. The falling interest rates would make to raise capital at less cost. Hence more opportunities for companies. Globalization is buying fresh opportunities in terms of foreign tie-ups.

THREATS
Risk of scams Several increase in the competition among mutual companies result in decreasing the spread.

ABOUT THE COMPANY


Zen Securities Limited is one of the leading stock broking companies based in Andhra Pradesh, India with an extensive network of over 100 trading terminals spread over Andhra Pradesh and Tamil Nadu. Zen Securities Limited is one of the leading stock broking companies based in Andhra Pradesh, India with an extensive network of over 100 trading terminals spread over Andhra Pradesh and Tamil Nadu. Zen Securities Limited (ZSL) is led by a highly experienced and respected team, which offers unique perspectives and excellent customer service to our clients. We offer a wide array of products and services including equities, futures & options, mutual funds, portfolio management services, public issues, commodities and depository services among others, to help our clients reach their personal financial goals Zen prides itself on the strength of its people, who offer valuable advice based on fundamental/technical research and pragmatic investment strategies, which guide our clients in the right direction.

Memberships

ZSL is members of the top exchanges and professional organizations of India. Currently, ZSL is a registered member of the Capital Market and Futures & Options segments of The National Stock Exchange of India Ltd. (NSE) and a member of the Capital Market segment of The Stock Exchange, Mumbai (BSE.) ZSL is a Depository Participant (DP) with the National Securities Depository Ltd. (NSDL) and the Central Depository Services Ltd. (CDSL.) ZSL is also a SEBI Registered Portfolio Manager and offer Portfolio Management Services to our clients.

The company has two Subsidiaries


1. Zen Comtrade Pvt. Limited: A 100% subsidiary of ZSL and is a member of National Commodities & Derivatives Exchange Limited (NCDEX), an exchange co-promoted by NSE and ICICI and the Multi Commodity Exchange (MCX.)

2. Zen Insurance Services Pvt. Limited: A 100% subsidiary of ZSL, it has applied for a license as an Insurance broker and the same is under consideration by Insurance Regulatory Development Authority (IRDA). Zen Securities Limited boasts a rich history of nearly two decades and continues to innovate in everything it does. ZSL is promoted by Mr. Ravindra Babu Kantheti, a prominent stockbroker and wellrespected personality in the stock broking and investing communities. ZSL commenced its membership on The Hyderabad Stock Exchange Ltd., Hyderabad as a proprietary concern of M/s K. Ravindra Babu in 1986, which was corporatised in February 1995 to Zen Securities Ltd. Since those days, we also have the distinction of being the first corporate member from Hyderabad and also the first Andhra Pradesh based broking firm to start trading on the National Stock Exchange (NSE.) Although we are proud of our past achievements, we are a forward-looking institution and are thus geared to continue to thrive in the future, along with our valuable clients

Zen Securities Limited - Team Profile


The people of Zen Securities have considerable experience and talents ranging over many industries such as financial services, pharmaceuticals, banking and I.T. among others. They are some of the most highly respected people in their professional circles.

Mr. Ravindra Babu Kantheti - Managing Director Mr. Ravindra Babu Kantheti is the main promoter of Zen Securities Ltd. Under his leadership, Zen has grown to become a leading provider of financial services. He is a prominent stockbroker and well-respected personality in the stock broking and investing communities and he serves as the Managing Director of our company. He has a Masters degree in Applied Physics with a specialization in the field of Instrumentation.

Mr. Sambasiva Rao Patibandla - Executive Director Mr. Sambasiva Rao has a Masters degree in Pharmacy. From a Premier Instutue

Mr. Gandhi Kantheti - C.E.O Mr. Gandhi Kantheti is one of the founder directors of the company and is presently based in U.S. He provides Zen with insights into global investments and technological practices. He is involved in providing critical overseas support to the company and is in charge of our Non-Resident Indian (NRI) services. He holds a Masters degree in Electrical and Communication Engineering from IIT Bombay.

Mr. Narayanan -.Director Mr. Narayanan is a very experienced Investment Analyst and Tax Consultant possessing a deep understanding about investments and stock market dynamics.

Mr. Ajay Kumar Mikkilineni.-.Director Mr. Ajay Kumar Mikkilineni is an M Sc (Agri)

Mr. Pratap Kantheti.-.Executive Director

Mr. Pratap Kantheti is a Chartered Financial Analyst (CFA) and also has a Masters in Business Administration (MBA) in Finance.

Mr. Satyanarayana Ch. Ravi.-.Director Mr. Satyanarayana Ch. Ravi has a Chemical Engineering. Degree from a Premier Institute Mr. Satish Kantheti.-.Director Mr. Satish Kantheti is a Chartered Financial Analyst (CFA) and also has a Masters in Business Administration (MBA) in Finance.

Mr. Namashivaya Renukuntla.-.Director, Zen Comtrade and Head of Compliance Mr. Namashivaya Renukuntla is a Mechanical Engineering and a Masters in Business Administration (MBA.)

SERVICES 1 2 3 4 5 6 7 8 Services offered by Zen Securities Limited Investment advisory services Portfolio Management Services. Trading on NSE (Capital Market segment ), BSE and HSE Trading on Futures and Options on the NSE Demat Accounts & Guidance to client in Dematerialization of physical shares. Tax saving Bonds and instruments Guidance to NRI clients regarding investing in the Indian Markets IPOs / Fixed income / Mutual Funds

REVIEW OF LITERATURE

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank the. The history of mutual funds in India can be broadly divided into four distinct phases. PHASES: First Phase 1964-87: Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was delinked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 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 Canara bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund(Oct 92). LIC 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. As 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 India 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 as 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 Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of 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, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

The graph indicates the growth of assets over the years. GROWTH IN ASSETS UNDER MANAGEMENT

Note: Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of the Unit Trust of India effective from February 2003. The Assets under management of the Specified Undertaking of the Unit Trust of India has therefore been excluded from the total assets of the industry as a whole from February 2003 onwards.

ADVANTAGES OF MUTUAL FUND:


The following are the major advantages offered by mutual funds to all investors: 2 Professional Management

3 4 5 6 7 8 9

Portfolio diversification Convenient administration Return potential Low cost Liquidity Transparency Flexibility

10 Affordability 11 Choice of schemes 12 Well regulatory

Professional Management:
Mutual Funds provide the services of experienced and skilled professionals, backed by a dedicated investment research team that analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme.

Diversification:
Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. You achieve this diversification through a Mutual Fund with far less money than you can do on your own.

Convenient Administration:
Investing in a Mutual Fund reduces paper work and helps you avoid many problems such as bad deliveries, delay payments and follow up with brokers and companies. Mutual Funds save your time and make investing easy and convenient.

Return Potential:
Over a medium to long - term, Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities.

Low Costs:
Mutual Funds are a relatively less expensive way to invest compared to directly; investing in the capital markets because the benefits of scale in brokerage, custodial and other fees translate into lower costs for investors.

Liquidity:
In open - end schemes, the investors gets the money back promptly at net asset value related prices from the Mutual Fund. In closed- end schemes, the units can be sold on a stock exchange at the prevailing market price or the investor can avail of the facility of direct repurchase at NAV related prices by the Mutual Fund.

Transparency:
You get regular information on the value of your investment in addition to disclosure in the specific investments made by your scheme, the proportion invested in each class of assets and the fund managers investment strategy and outlook.

Flexibility:
Through features such as regular investment plans, regular withdrawal plans and dividend reinvestment plans, you can systematically invest or withdraw funds according to your needs and convenience.

Affordability:
Investors individually may lack sufficient funds to invest in high grade stocks. A mutual fund because of its large corpus allows even a small investor to take the benefit of its investment strategy.

Choice of schemes:
Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.

Well Regulated:
All Mutual Funds are registered with SEBI and they function within the provisions of strict regulations designed to protect the interests of investors. The operations of Mutual Funds are regularly monitored by SEBI.

DISADVANTAGE OF MUTUAL FUND:


1 2 3 No control over costs No tailor - made portfolios Managing a portfolio of funds

An investor in a mutual fund has no control overall cost of investing. Fees are usually payable as a percentage of the value of his investments, whether the fund value is rising or declining. A mutual fund investor also pays fund distribution costs, which he would not incur in direct investing. Investors who invest on their own can build their own portfolios of shares, bonds and other securities. Investing through funds means he delegates this decision to the fund managers. The very high - net worth individuals or large corporate investors may find this to be a constraint in achieving their objectives. An investor can choose from different investment plans and construct a portfolio of his choice. Availability of large number of funds can actually mean too much choice for the investor. He may again need advice on how to select a fund to achieve his objectives, quite similar to the situation when he has to select individual shares or bonds to invest in.

TYPES OF MUTUAL FUNDS:


All mutual funds would be either closed-end or open-end, and either load or no-load. These classifications are general. Funds are generally distinguished from each other by their investment objectives and types of securities.

1 Money market funds 2 Gilt funds 3 Debt funds 4 Equity funds 5 Hybrid funds 6 Commodity funds 7 Real funds

Money Market Funds:


Money market funds invest in securities of a short term nature, which generally means securities of less than one-year maturity. The typical, short-term, interest-bearing instruments these funds invest in include treasure bills issued by governments, certificates of deposit issued by banks and commercial paper issued by companies. Money market funds also invest in the inter-bank money market. The major strengths of money market funds are the liquidity and safety of principal that the investors can normally expect from short-term investments.

Gilt Funds:
Gilts are government securities with medium to long - term maturities, typically of over one year. Gilt funds that invest in government paper called dated securities. The issuer is the governments of India; these funds have little risk of default and hence offer better protection of principal. Debt securities prices fall when interest rate levels increase.

Debt funds: (income funds)


Debt funds invest in debt instruments issued not only by governments, but also by private companies, bank and financial institutions and other entities such as infrastructure companies. By investing in debt, these funds target low risk and stable income for the investor as their key objectives. As compared to gilt funds, general debt funds do have a higher risk of default by their borrowers. Debt funds are largely considered as income funds as they do not target capital appreciation, high current income, and therefore distribute a substantial part of their surplus to investors.

1 2 3 4 5

Diversified debt funds Focused debt funds High yield debt funds Assured return funds Fixed term plan series

Equity Funds:
There are a large variety of equity funds and all of them are not equally risk - prone. Investors and their advisors and their advisors need to sort out and select the right equity fund that suits their risk appetite. Equity funds invest a major portion of their corpus in equity shares issued by companies, acquired directly in initial public offerings or through the secondary market. 1 2 3 4 5 6 7 Aggressive growth funds Growth funds Specialty funds Diversified equity funds Equity index funds Value funds Equity income funds

Hybrid Funds:
There are three major mutual fund types money market, debt and equity. Money mutual funds mix these different types of securities in their portfolios. There are funds that seek to hold a relatively balanced holding of debt and equity securities in the portfolios. Such funds are termed as they have a dual equity/bond focus. Some of the funds in this category are described below. 1Balanced funds

2Growth - and - income funds 3Asset allocation funds

Commodity Funds:
Commodity funds specialize in investing in different commodities directly or through shares of commodity companies or through commodity futures contracts. A most common example of commodity funds is called precious metals funds. Gold funds invest in gold, gold futures or shares of gold mines. Commodity funds have not yet developed.

Real estate Funds:


Real estate funds would invest in real estate directly, or may fund real estate developers, or lend to them, or buy shares of housing finance companies or may even buy their securitized assets. The funds may have a growth orientation or seek to give investors regular income.

Significance of Mutual Funds:


It must be appreciated that no specific class or type is universally accepted as the best option. Each type of fund comes with its pros and cons and a unique risk-return relationship. It is up to the investor to decide the type that best suits his requirements and matches his objectives. The reader should not have too much difficulty in seeing the relatively minor differences in classifications or names of fund types. To help Yet a better understanding, we have developed the enclosed chart that lists the mutual fund types in order risk levels.

STRUCTURE OF MUTUAL FUNDS


Structure of Mutual Funds in India:

India has a legal frame work with in which mutual funds must be constituted. Unlike in the UK, where two distinct trust and corporate. A mutual fund in India is allowed to issue open-end and closed-end schemes under a common legal structure. The structure which is required to be followed by followed by mutual funds in India is laid down under SEBI (mutual fund) regulation, 1996. 1The fund sponsor 2Mutual funds as Trusts 3Trustees 4The asset management company 5Independent directors and trustees

The fund sponsor:


Sponsor is defined under SEBI regulations as any person who, acting alone or in combination with another body corporate, establishes a mutual fund. The sponsor of a fund is akin to the promoter of a company, the fund registered with SEBI. The sponsor will form a trust and appoint a board of trustees. The sponsor will also generally appoint an Asset management company as fund managers. All these appointments are made in accordance with SEBI regulations.

Mutual Funds as Trusts:


A mutual fund in India is constituted in the form of a public trust created under the Indian trusts act, 1882. The fund sponsor acts as the settler of the trust, contributing to its initial capital and appoints a trustee to hold the assets of the trust for the benefit of the unitholder, who are the beneficiaries of the trust.

Trustees:
Most of the funds in India are managed by board of trustees. The trust is created through a document called the trust deed that is executed by the fund sponsor in favour of the

trustees. The trust deed is required to be stamped as registered under the provisions of Indian registration act and registered with SEBI.

The Asset Management Company:


The role of an AMC is to act as the investment manager of the trust. The sponsor, or the trustees, if so authorized by the trust deed, appoints the AMC. The AMC appointed is required to be appointed is required to approve by SEBI. The AMC of a mutual fund must have a net worth of at least Rs.10 crores at all times. The AMC cannot act as a trustee of any other mutual fund.

Independent Directors and Trustees:


In any service contracts with affiliates to ensure higher than market-level fees have not been charged by the AMC to the fund, any securities transactions with affiliates if permitted, by the AMC. The independent trustees must also design a code of ethics for the securities transactions.

SETUP OF A MUTUAL FUND


A Mutual fund is set up in the form of a trust, which has sponsor, trustees, Asset Management Company (AMC) and custodian. The trust is established by a sponsor or more that one sponsor who is like promoter of a company. The trustees of the mutual fund hold its property for the benefit of the unit holders. Asset Management Company (AMC) approved be SEBI manages the funds by making investments in various types of securities. Custodian, who is registered with SEBI, holds the securities of various schemes of the fund in its custody. The trustees are vested with the general power of superintendence and direction over AMC. They monitor the performance and compliance of SEBI Regulations by the mutual fund.

NET ASSET VALUE (NAV)

The performance of a particular scheme of a mutual fund is denoted by Net Asset Value (NAV). Net asset value of mutual fund scheme represents the market value of a single unit of the scheme on any given business day. When you invest your money in any mutual fund, you are allotted units at a certain price. This price, measured per unit, is called the NAV or the Net Asset value of the unit. So, just like a share is bought and sold at a price, or a bond is traded at a value, a mutual fund is bought and sold at its NAV. Simply put, a funds NAV is its assets divided by the number of outstanding units. A mutual fund is a proxy route for investors to access the stock and bond markets. Mutual funds collect money from investors and buy shares/bonds on their behalf. These investments the fund makes in the market are its assets. There are, however, some short-term liabilities too in the funds balance sheet. These liabilities and any fund expenses are Net assets are defined as assets minus deducted from its assets to get the net assets. assets per unit, commonly know as NAV. Net assets of schemes SEBIS formula for NAV: ----------------------------------Number of Units outstanding For example, if the market value of securities of a mutual fund scheme is Rs 200 lakhs & the mutual fund has issued 10 lakh units of Rs.10 each to the investors, then the NAV per unit of the fund is Rs. 20. NAV is required to be disclosed on a regular basis daily or weekly depending on the type of scheme.

liabilities. Mutual funds compute the share of each investor on the basis of the value of net

Calculation of Net Asset Value (NAV)


The most important part of the calculation is the valuation of the assets owned by the fund. Once it is calculated, the NAV is simply the net value of assets divided by the number of units outstanding. The detailed methodology for the calculation of the asset value is given below.

Asset value is equal to Sum of market value of shares/debentures.

+ Liquid assets/cash held, if any + Dividend/interest accrued Amount due on unpaid assets Expenses accrued but not paid

COST INVOLVED IN MUTUAL FUNDS


Ah that all important question what kind of hole will it burn in your pocket! Well, there are a few charges involved, but if you think of all the bother theyre saving you and the money that you stand to earn, you wont mind paying up. In addition to what are called loads (explained below), a mutual fund also charges asset management fees and certain other expenses. These charges compensate the fund for the expenses it incurs in managing assets, processing transactions and paying brokerages. investor. However, it will please you to know that theres nothing arbitrary about these charges. For example, regulations stipulate that the difference between the repurchase and the resale price cannot exceed 7% of same price, and that recurring expenses cannot exceed 2.5% of average weekly net assets. The recurring expenses limit is even lower for schemes with a size exceeding Rs.100 crores in net assets. So if ever you get the feeling that youre being fleeced dont, because theres somebody making sure that all is fair and square. For instance, every redemption request involves not only administrative processing costs but also others costs associated with raising money to pay off the outgoing

Loads
Dont look at these as a burden; just think of them as tolls you pay on the highway to big money.

Entry Load/Sale Load


This is the charge imposed at the time you enter a fund as an investor. You pay for the value of the units plus an additional charge. That additional charged is termed entry/sale load. Funds usually charge an entry load ranging between 1.00 % and 2.00%.

For e.g. Let us assume an investor invests Rs. 10,000/- and the current NAV is Rs. 13/-. If the entry load levied is 1.00%, the price at which the investor invests is Rs. 13.13 per unit. The investor receives 10,000/13.13 = 761.6146 units. (Notes that unit are allotted to an investor based on the mount invested and not on the basis of no of units purchased)

Exit Load/Repurchase Load


The opposite of the above! This is what you cough up at the time of our exit from the scheme. Operationally, therefore, what you get back from the mutual fund will be the value of the units minus the exits charge. Exit loads vary between 0.25% and 2.00%.

Recurring Expenses
Apart from Loads mutual funds also charge some other expenses, such as:

Trustees Fees
These are fees payable to the trustees for managing the trust.

Custodian Fees
These are paid b the fund to its custodians, the organization which handles the possessing of the securities invested in by the fund.

UNDERSTANDING AND MANAGING RISK


Having understood the basics of mutual funds the next step is to build a successful portfolio, one should understand some other elements on mutual fund investing and how they can affect the potential value of your investments over the years. The first thing that has to be kept in mind is that when you invest in mutual funds, there is no guarantee that you started our with. That is, the potential of loss is always there. The loss of value in your investments is what is considered risk in investing. Risk then, refers to the volatility the ups and downs in the market and the individual issues that occur constantly over time. This volatility can be caused by a number of factors interest rate changes, inflation or general economic condition.

Types of Risks Market Risk:


There are times when the price of securities in a particular market rise or fall due to certain outside influencing factors. This could affect large as well as small businesses.

Credit Risk:
The ability of a company to repay investors money or to make interest payments determines the credit risk that investors face

THE GROUND RULES OF MUTUAL FUND INVESTING


Moses gave to his followers 10 commandments that were to be followed till eternity. The world of investments too has several ground rules meant for investors who are novices in their own right and wish to enter the myriad world of investments. These come in handy for there is every possibility of losing what one has if due care is not taken.

Investors Rights and Obligations


Assess yourself Self-assessment of ones needs; expectations and risk profile is of prime importance failing which; one will make more mistakes in putting money in capacity one has and also clearly state the expectations from the investments. Irrational expectations will only bring pain.

Try to understand where your money is going


It is important to identify the nature of investment and to know if one is compatible with the investment. One can lose substantially if one picks the wrong kind or mutual fund.

In order to avoid any confusion it is better to go through the literature such as offer document and fact sheets that mutual fund companies provide on their funds.

Dont rush in picking funds, think first


One first has to decide what he wants the money for and it is this investment goal that should be the guiding light for all investments done. It is thus important to know the risks associated with the fund and align it with the quantum of risk one is willing to take. One should take a look at the portfolio of the funds for the purpose. Excessive exposure to any specific sector should be avoided, as it will only add to the risk of the portfolio. Mutual funds invest with a certain ideology such as the Value Principle or Growth Philosophy. Both have their share of critics but both philosophies work for investors of different kinds. Identifying the proposed investment philosophy of the fund will give an insight into the kind of risks that it shall be taking in future.

Dont Put all eggs in one basket


This old age adage is of utmost important. No matter what the risk profile of a person is, it is always advisable to diversify the risks associated. So putting ones money in different asset classes is generally the best options as it averages the risks in each category. Thus, even investors of equity should judicious and invest some portion of the investment in debt. Diversification even in any particular asset class (such as equity, debt) is good. Not all fund managers have the same acumen of fund management and with identification of the best man being a tough task; it is good to place money in the hands of several fund managers. This might reduce the maximum return possible, but will also reduce the risks.

Do your homework
It is important for all investors to research the avenues available to them irrespective of the investor category they belong to. This is important because an informed investor is in a better decision to make right decisions. Having identified the risks associated with the investment is important and so one should try to know all aspects associated with it. Asking the intermediaries is one of the ways to take care of the problem.

Find the fight funds


Finding funds that do not charge much fees is of importance, as the fee charged ultimately goes from the pocked of the investor. This is even more important for debt funds as the returns from these funds are not much. Funds that charge more will reduce the yield to the investor. Finding the right funds is important and one should also use these funds for tax efficiency. Investors of equity should keep in mind that all dividends are currently tax-free in India and so their tax liabilities can be reduced if the dividend payout option is used. Investors of debt will be charged a tax on dividend distribution and so can easily avoid the payout options.

REGULATORY ASPECTS OF MUTUAL FUNDS


Schemes of a Mutual Fund
The asset management company shall launch no scheme unless the trustees approve such scheme and a copy of the offer document has been filed with the Board. Every mutual fund shall along with the offer document of each scheme pay filing fees. The offer document shall contain disclosures which are adequate in order to enable the investors to make informed investment decision including the disclosure on maximum investments proposed to be make by the scheme in listed securities of the group companies of the sponsors A close-ended scheme shall be fully redeemed at the end of the maturity period.

Rules regarding Advertisement


The offer document and advertisement materials shall not be misleading or contain any statement or opinion, which are incorrect or false.

Restrictions On Investment
A mutual fund scheme shall not invest more than 15% of its NAV in debt instrument issued by a single issuer, which are rated not below investment grade by a credit rating agency authorized to carry out such activity under the Act. Such investment limit may be

extended to 20% of the NAV of the scheme with prior approval of the Board of Trustees and the Board of Asset Management Company. A mutual fund scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer and the total investment in such investments shall not exceed 25% of the NAV of the scheme. All such investments shall be made with the prior approval of the Board of Trustees and the Board of asset management company. No mutual fund scheme shall invest more than 10% of its NAV in the equity shares or equity related instruments of any company. Provided that, the limit of 10% shall not be applicable for investments in index fund or sector or industry specific scheme. A mutual fund scheme shall not invest more than 5% of its NAV in the equity shares or equity related investments in case of open-ended scheme and 10% of its NAV in case close-ended.

.Chapter IV

DATA ANALYSIS
&

INTERPRETATION

INTRODUCTION TO FUNDS
HDFC MUTUAL FUND:
1. Scheme Type Inception date Fund size in Rs. Crorres Minimum investment Asset allocation Entry load Exit load Investment objective : : : : : : : : : HDFC Balance Fund Open ended balance fund Set-11-2000 11.42 5000 Normal Allocation (% of Net Assets) 60% in Equities & 40% debt securities & Money Market instruments. 2.25% 0% To generate capital appreciation along with current income from a combined portfolio of equity & equity related and debt. Fund manager : Tushar Pradhan

2. Scheme Type Inception date Fund size in Rs. Crores Minimum investment Asset collection Entry load Exit Load Investment objective Fund manager : : : : : : : : : : HDFC Income Fund Open ended Income fund Dec-08-1994 290.73 5000 Normal Allocation (% of net asset) 2.25% 0% To achieve capital appreciation Prashanth Jain

3. Scheme Type Inception date Fund size in Rs. Crorres Minimum investment Asset allocation Entry load Exit load Investment objective Fund manager : : : : : : : : : : Shobit Malhothra 0% 0% HDFC Liquid Fund Open ended Liquid fund Oct-17-2000 173.90 10000

ING VYSYA MUTUAL FUND:


1. Scheme Type Inception date Fund size in Rs. Crorres Minimum investment Entry load Exit load Investment objective : : : : : : : : ING Balanced Open ended Balanced fund Apr-25-2000 1.64 5000 0% 0% The investment objective of this scheme is to generate long-term capital appreciation and current income from a portfolio of equity and fixed income securities .This scheme will , under normal market conditions, investment approximately 60% of its net assets in equity and equity related instruments with the balance 40% being invested in fixed income securities , money market instruments , cash and cash equitants ,through these % may vary . Fund manager : Gaurav Narain.

2. Scheme Type Inception date Fund size in Rs. Crores Minimum investment Entry load Exit Load Investment objective : : : : : : : : ING Income Fund Open ended Income fund Feb-22-2002 0.75 5000 2% 0% The objective of the scheme is to provide long-term capital appreciation from portfolio that is invested

predominantly in high quality equity and equity related securities . Fund manager : Gaurav Narain

3. Scheme Type Inception date Fund size in Rs. Crorres Minimum investment Entry load Exit load Investment objective : : : : : : : : ING Liquid Fund Open ended liquid fund Dec-30-1999 86.52 2000 0% 0% To provide reasonable returns while providing a high level of liquidity and low risk by investing primarily in money market and debt securities .The aim is to optimize returns while providing liquidity. Fund manager : Ramachandram

LIC MUTUAL FUND:


1. Scheme Type Inception date Fund size in Rs. Crores Minimum investment Entry load Exit Load Investment objective : : : : : : : : LIC MF Balanced Fund Open ended Jan-01-1991 2.34 1000 1.50% 0% To generate capital appreciation along with current income from a combined portfolio of equity related funds. Fund manager : JS Zala

2. Scheme Type Inception date Fund size in Rs. Crores Minimum investment Entry load Exit Load Investment objective Fund manager : : : : : : : : : LIC MF Income Fund Open ended Jan-11-1993 7.23 2000 2% 0% Capital appreciation through investing in equity and generate income through debt. Bichitra Mahapatra.

3.

Scheme Type Inception date Fund size in Rs. Crores Minimum investment Entry load Exit Load Investment objective Fund manager

: : : : : : : : :

LIC MF liquid Fund Open ended Mar-18-2002 347.52 25000 0% 0% To achieve capital appreciation Anjali Desai

TATA MUTUAL FUND:


1. Scheme Type Inception date Fund size in Rs. Crores Minimum investment Entry load Exit Load Investment objective : : : : : : : : TATA Balanced Fund Open ended Oct-08-1995 13.73 1000 1.75% 0% To provide income distribution and/or medium to long term capital gains while at all times emphasizing the importance of capital appreciation. Fund manager : Venugopal

2. Scheme Type Inception date Fund size in Rs. Crores Minimum investment Entry load Exit Load Investment objective : : : : : : : : TATA Income Fund Open ended Income fund May-24-1996 26.55 5000 2.25% 0% To provide income distribution and/or medium to long term capital gains while at all times emphasizing the importance of capital appreciation. Fund manager : S.Sankaranarayanan

3.

Scheme Type Inception date Fund size in Rs. Crores Minimum investment Entry load Exit Load Investment objective

: : : : : : : :

TATA liquid fund Open ended Aug-30-1998 233.16 30000 0% 0% The objective of the scheme is to generate reasonable returns along with high liquidity and safety by investing in a portfolio of money market and other short term debt instrument.

Fund manager

S.Sankaranarayanan

UTI MUTUAL FUND:


1. Scheme Type Inception date Fund size in Rs. Crores Minimum investment Entry load Exit Load Investment objective : : : : : : : : UTI Balanced Fund Open ended Jan-01-1995 55.95 5000 2.25% 0% An open ended balanced fund investing between 40% to 60% in equity related securities and the balance in debt (fixed income securities ) with a view to generate regular income together with capital appreciation. Fund manager : David Pezarkar.

2. Scheme Type Inception date Fund size in Rs. Crores Minimum investment Entry load Exit Load Investment objective : : : : : : : : UTI Income Fund Open ended May-18-1992 159.51 5000 2.25% 0% An open-ended equity fund aiming to provide benefit of capital appreciation and income distribution through investment in equity. Fund manager : Siddarth Dernbi

3.

Scheme Type Inception date Fund size in Rs. Crores Minimum investment Entry load Exit Load Investment objective

: : : : : : : :

UTI Liquid Fund Open ended Jul-23-2002 1.35 10000 0% 0% The scheme seeks to generate steady & reasonable income with low risk and high level of liquidity from a portfolio of money market securities and high quality debt.

Fund manager

Amardeep S.Chopra/Alok Sahoo

A COMPARATIVE ANALYSIS OF BALANCE MUTUAL FUND SCHEMES


NAVS IN RS WEEKEND Name of W1 W2 W321- W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 the M.F 07-12- 14-12- 12-7-09 28-12- 4-01-10 11-01- 18-01- 25-01- 1-02-10 8-02-10 15-02- 22-02- 29-02Schemes 09 09 09 10 10 10 10 10 10 HDFC 22.135 22.784 22.144 20.465 21.135 20.869 20.096 19.308 19.211 18.892 18.946 18.725 18.940 BMF ING VY 18.170 18.550 17.730 18.520 18.920 18.690 17.680 16.970 16.520 16.150 16.510 16.090 16.300 BMF LIC BMF 14.582 15.436 14.702 15.553 16.196 15.269 14.425 14.360 12.750 12.575 12.250 12.119 12.423 TATA 52.421 51.986 49.939 52.409 54.597 53.054 50.400 48.045 46.927 45.553 46.151 44.914 45.615 BMF UTI BMF 26.450 25.980 25.660 26.750 27.420 26.810 25.730 24.751 24.230 23.730 24.210 23.640 24.040
0.08 0.06 0.04 0.02 0 W1 -0.02 -0.04 -0.06 -0.08 -0.1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13

HDFC BMF INGVY BMF LIC BMF TATA BMF UTI BMF

A C OM P A RA TIV E AN A LYS IS O F BA LA N C E M U TUA L FU ND S C H EM ES R ETU R N S IN RS

A C OMPA R A T IV E A NA L Y SI S OF B A LA N C E MU T U A L FUN D S C HE ME S R E TU R NS I N RS

Name of W1 W2 W3 W4 W5 W6 the M.F 07-12- 14-12- 21-12- 28-12- 4-01-10 11-01Schemes 09 09 09 09 10 HDFC - 0.0293 0.0280 0.0758 0.0327 0.0125 BMF 2 9 2 39 9 ING VY - 0.0209 -0.0442 0.0445 0.0215 0.0121 BMF 14 57 98 6 LIC BMF - 0.0585 0.0475 0.0578 0.0413 0.0572 65 5 83 43 4 TATA - 0.0083 0.0393 0.0494 0.0417 0.0282 BMF 8 6 49 6 UTI BMF - 0.0177 0.0123 0.0424 0.0250 0.0222 7 2 79 47 5

W7 18-0110 0.0370 4 0.0540 4 0.0552 8 0.0500 2 0.0402 8

W8 W9 W10 25-01- 1-02-10 8-02-10 10 0.0392 0.0050 0.0166 1 2 1 0.0401 0.0265 -0.0224 6 2 0.0045 0.1121 0.0137 1 2 3 0.0467 0.0232 0.0292 3 7 8 0.0380 0.0210 0.0206 5 5 4

W11 W12 W13 15-02- 22-02- 29-0210 10 10 -.0088 -0.06 -0.456 -0.639 -0.09 - 0.01148 0.00884 2 - 0.01305 0.00372 2 - 0.02508 0.03626 5 - 0.01560 0.01403 8 0.003790.01692

Interpretation:
Th e table s how s the comparative analys is are B alance M utual Fun d S ch eme bas ed on N et As s et V alue of H DF C , IN G VY SY A , LIC , TA TA & U TI Mu tual F und C ompanies . The s tudy carry on period 13 w eeks & data s h o ws w eekend NA V comparis on betw een different M utual Fund s amp le C o mp an ies . Th e table values indicate decreas ing trend in all M utual Fund S chemes o f d if ferent s ample C ompanies . Th e table s how s the returns of different M utual Fund s hows fluctuat io n w ith iv performance except few w eeks of U TI, TA TA & LIC .

A C OMPA R A T IV E A NA L Y SI S OF IN C OME MU T U A L FUN D S C HE ME S NAVS IN RS WEEKEND Name of W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 the M.F 07-12- 14-12- 21-12- 28-12- 4-01-10 11-01- 18-01- 25-01- 1-02-10 8-02-10 15-02- 22-02- 29-02Schemes 09 09 09 09 10 10 10 10 10 10 HDFC 10.581 10.581 10.610 10.435 10.516 10.602 10.622 10.706 10.676 10.716 10.693 10.615 10.660 IMF ING VY 10.481 10.491 10.514 10.379 10.475 10.648 10.694 10.813 10.694 10.737 10.726 10.676 10.701 IMF LIC IMF 10.300 10.293 10.303 10.360 10.168 10.170 10.165 10.162 10.167 10.167 10.169 10.161 10.172 TATA 15.318 15.322 15.442 15.478 15.514 15.611 15.648 15.745 15.749 15.779 15.797 15.726 15.779 IMF UTI IMF 23.146 23.178 23.204 23.281 23.418 23.533 23.564 23.667 23.625 23.692 23.657 23.514 23.586
0.02 0.015 0.01 0.005 HDFC IMF 0 W1 -0.005 -0.01 -0.015 -0.02 -0.025 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 ING VY IMF LIC IMF TATA IMF UTI IMF

A C OMPA R A T IV E A NA L Y SI S OF IN C OME MU T U A L FUN D S C HE ME S R E TU R NS I N RS

A C OMPA R A T IV E A NA L Y SI S OF IN C OME MU T U A L FUN D SC HE ME S RE T U RN S Name of W1 W2 W3 W4 W5 W6 the M.F 07-12- 14-12- 21-12- 28-12- 4-01-10 11-01Schemes 09 09 09 09 10 HDFC - 0.0027 0.0164 0.0077 0.0081 0.0018 IMF 41 9 62 78 86 ING VY - 0.0021 0.0128 0.0092 0.0165 0.0043 IMF 92 4 49 16 2 LIC IMF - 0.0009 0.0055 0.0185 0.0001 0.0004 72 32 3 97 9 TATA IMF UTI IMF W7 W8 W9 W10 W11 W12 W13 18-01- 25-01- 1-02-10 8-02-10 15-02- 22-02- 29-0210 10 10 10 10 0.0079 -0.0028 0.0037 0.0021 0.0072 0.004230.00274 08 47 5 9 9 1 0.0111 0.0110 0.0040 0.0010 0.0046 0.002340.00219 28 1 21 2 6 2 2 -0.0003 0.0004 0 0.0001 0.0007 0.001080.00097 92 97 9 3 2 0.0078 0.0023 0.0023 0.0062 0.0023 0.0061 0.0002 0.0019 0.0011 0.0044 0.00783 32 31 26 52 7 99 54 05 41 9 0.00337 2 0.0011 0.0033 0.0058 0.0049 0.0013 0.0043 0.0017 0.0028 0.0014 0.0060 0.003060.00112 22 18 85 11 17 71 7 36 8 4 2 2

Interpretation:
Th e table s how s the comparative analys is are Income M utual Fun d S ch eme bas ed on N et As s et V alue of H DF C , IN G VY SY A , LIC , TA TA & U TI Mu tual F und C ompanies . The s tudy carry on period 13 w eeks & data s h o ws w eekend NA V comparis on betw een different M utual Fund s amp le C o mp an ies . Th e table values indicate increas ing trend in all M utual F und S chemes o f d if ferent s ample C ompanies . Th e table s how s the returns of different Mutual Fund s how s a + v e g r o w th during period s tudy except 9 t h , 10 t h w eek of the s tudy.

A C OMPA R A T IV E A NA L Y SI S OF L I QUI D MU TU A L FU ND S C HE ME S NAVS IN RSWEEKEND Name of W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 the M.F 07-12- 14-12- 21-12- 28-12- 4-01-10 11-01- 18-01- 25-01- 1-02-10 8-02-10 15-02- 22-02- 29-02Schemes 09 09 09 09 10 10 10 10 10 10 HDFC 10.319 10.319 10.319 10.319 10.319 10.319 10.318 10.319 10.319 10.318 10.319 10.319 10.319 LMF ING VY 10.833 10.833 10.833 10.834 10.832 10.833 10.833 10.834 10.834 10.833 10.833 10.833 10.833 LMF LIC LMF 10.980 10.980 10.980 10.980 10.980 10.980 10.980 10.980 10.980 10.980 10.980 10.980 10.980 TATA 1116.8 1116.8 1116.8 1116.8 1116.8 1116.8 1116.8 1116.8 1116.8 1116.8 1116.81 1116.8 1116.81 LMF 14 14 14 14 14 14 14 14 14 14 4 14 4 UTI LMF 1031.8 1031.1 1031.3 1031.6 1031.7 1031.8 1032.1 1032.3 1032.6 1032.8 1033.02 1033.2 1033.51 88 28 98 05 12 63 12 71 19 47 6 30 2
0.0003 0.00025 0.0002 0.00015 0.0001 0.00005 0 -0.00005 -0.0001 -0.00015 -0.0002 -0.00025 W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 HDFC LMF ING VY LMF LIC LMF TATA LMF UTI LMF

A C OMPA R A TI V E AN A L YS I S OF L I QU ID MU T U A L FUN D S C HE ME S R E TU R NS I N RS

A C OMPA R A TI V E AN A L YS I S OF L I QU ID MU T U A L FUN D SC HE ME S IN RS Name of W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 the M.F 07-12- 14-12- 21-12- 28-12- 4-01-10 11-01- 18-01- 25-01- 1-02-08 8-02-10 15-02- 22-02- 29-02Schemes 09 09 09 09 10 10 10 10 10 10 HDFC LMF ING VY LMF LIC LMF TATA LMF UTI LMF 0 0 0 0 0 0 0 -9.7E- 9.69E05 05 0 0 0 9.23E05 0 0 0 0 0 0 -9.7E- 9.69E05 05 -9.2E05 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

9.23E- 0.0001 9.23E05 8 05 0 0 0 0 0 0

0.0002 0.0002 0.0001 0.0001 0.0002 0.0002 0.0002 0.0002 0.0001 0.0001 0.000270.00026 62 01 04 46 41 51 4 21 73 97 3 2

Interpretation:
Th e table s how s the comparative analys is are Liquid Mutual Fun d S ch eme bas ed on N et As s et V alue of H DF C , IN G VY SY A , LIC , TA TA & U TI Mu tual F und C ompanies . The s tudy carry on period 13 w eeks & data s h o ws w eekend NA V comparis on betw een different M utual Fund s amp le C o mp an ies . Th e table values indicate s layable trend in all M utual F und S chemes o f d if f er ent s ample C ompanies except U TI & some of w eeks of HD F C & I N G VY SY A .. Th e table s how s the returns of different M utual Fund s hows 0 & +v e imp r ovemen t in all s ample companies .

A C OMPA R A T IV E A NA L Y SI S OF HD FC MU TU A L FU ND S C HE ME S RE T U RN S I N RS

Name of W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 the M.F 07-12- 14-12- 21-12- 28-12- 4-01-10 11-01- 18-01- 25-01- 1-02-10 8-02-10 15-02- 22-02- 29-02Schemes 09 09 09 09 10 10 10 10 10 10 HDFC - 0.0293 0.0280 0.0758 0.0327 0.0125 0.0370 0.0392 0.0050 0.0166 0 - 0.01148 BMF 2 9 2 39 9 4 1 2 1 0.00884 2 HDFC - 0.0027 0.0164 0.0077 0.0081 0.0018 0.0079 -0.0028 0.0037 0.0021 0.0072 0.004230.00274 IMF 41 9 62 78 86 08 47 5 9 9 1 HDFC LMF 0 0 0 0 -9.7E- 9.69E05 05 0 -9.7E- 9.69E05 05 0 0 0

0.04

0.02

0 W1 -0.02 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 HDFC BMF HDFC IMF -0.04 HDFC LMF

-0.06

-0.08

-0.1

A COMPARATIVE ANALYSIS OF HDFC MUTUAL FUND SCHEMES RETURNS IN RS

Interpretation
Above table & graph shows performance of HDFC Mutual Fund returns of different Schemes. Where HDFC Income fund shows +ve growth other than Balance & Liquid Mutual Fund.

A C OMPA R A T IV E A NA L Y SI S OF IN G VY MU TU A L FU ND S C HE ME S RE T R UN S I N RS Name of W1 W2 W3 W4 W5 W6 the M.F 07-12- 14-12- 21-12- 28-12- 4-01-10 11-01Schemes 09 09 09 09 10 INGVY - 0.0209 -0.0442 0.0445 0.0215 0.0121 BMF 14 57 98 6 INGVY - 0.0021 0.0128 0.0092 0.0165 0.0043 IMF 92 4 49 16 2 INGVY 0 9.23E- 0.0001 9.23E0 LMF 05 8 05
0.06

W7 W8 W9 W10 W11 W12 W13 18-01- 25-01- 1-02-10 8-02-10 15-02- 22-02- 29-0210 10 10 10 10 0.0540 0.0401 0.0265 -0.0224 0 - 0.01305 4 6 2 0.00372 2 0.0111 0.0110 0.0040 0.0010 0.0046 0.002340.00219 28 1 21 2 6 2 2 9.23E05 0 -9.2E05 0 0 0 0

0.04

0.02 INGVY BMF 0 W1 -0.02 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 INGVY IMF INGVY LMF

-0.04

-0.06

A COMPARATIVE ANALYSIS OF ING VY MUTUAL FUND SCHEMES RETRUNS IN RS

Interpretation
Above table & graph shows performance of ING VYSYA Mutual Fund returns of different Schemes. Where ING VYSYA Income fund shows consistency in performance among other schemes.

A C OMPA R A TI V E AN A L YS I S OF L I C MU TU A L FU ND S C HE ME S RE T U RN S I N RS Name of W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 the M.F 07-12- 14-12- 21-12- 28-12- 4-01-10 11-01- 18-01- 25-01- 1-02-10 8-02-10 15-02- 22-02- 29-02Schemes 09 09 09 09 10 10 10 10 10 10 LIC BMF - 0.0585 0.0475 0.0578 0.0413 0.0572 0.0552 0.0045 0.1121 0.0137 0 - 0.02508 65 5 83 43 4 8 1 2 3 0.03626 5 LIC IMF - 0.0009 0.0055 0.0185 0.0001 0.0004 -0.0003 0.0004 0 0.0001 0.0007 0.001080.00097 72 32 3 97 9 92 97 9 3 2 LIC LMF 0 0 0 0 0 0 0 0 0 0 0 0

0.08 0.06 0.04 0.02 0 -0.02 -0.04 -0.06 -0.08 -0.1 -0.12 -0.14 W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 LIC BMF LIC IMF LIC LMF

A COMPARATIVE ANALYSIS OF LIC MUTUAL FUND SCHEMES RETURNS IN RS

Interpretation
Above table & graph shows performance of LIC Mutual Fund returns of different Schemes. Where LIC Income fund shows +ve returns during period of study except one or 2 weeks & in Liquid fund shows 0 returns where as Balance shows ve.

A C OMPA R A TI V E AN A L YS I S OF T A T A MU TU A L FU ND S C HE ME S RE T R UN S I N RS

Name of W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 the M.F 07-12- 14-12- 21-12- 28-12- 4-01-10 11-01- 18-01- 25-01- 1-02-10 8-02-10 15-02- 22-02- 29-02Schemes 09 09 09 09 10 10 10 10 10 10 TATA - 0.0083 0.0393 0.0494 0.0417 0.0282 0.0500 0.0467 0.0232 0.0292 0 - 0.01560 BMF 8 6 49 6 2 3 7 8 0.01403 8 TATA - 0.0078 0.0023 0.0023 0.0062 0.0023 0.0061 0.0002 0.0019 0.0011 0.0044 0.00783 IMF 32 31 26 52 7 99 54 05 41 9 0.00337 2 TATA LMF 0 0 0 0 0 0 0 0 0 0 0 0

0.06

0.04

0.02 TATA BMF 0 W1 -0.02 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 TATA IMF TATA LMF

-0.04

-0.06

A COMPARATIVE ANALYSIS OF TATA MUTUAL FUND SCHEMES RETURNS IN RS

Interpretation
Above table & graph shows performance of TATA Mutual Fund returns of different Schemes. Where TATA Income fund shows +ve returns other Balance & Liquid fund shows 0 & -ve returns.

A C OMPA R A TI V E AN A L YS I S OF U T I MU TU A L FU ND S C HE ME S RE T R UN S I N RS Name of W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 the M.F 07-12- 14-12- 21-12- 28-12- 4-01-10 11-01- 18-01- 25-01- 1-02-10 8-02-10 15-02- 22-02- 29-02Schemes 09 09 09 09 10 10 10 10 10 10 UTI BMF - 0.0177 0.0123 0.0424 0.0250 0.0222 0.0402 0.0380 0.0210 0.0206 0 7 2 79 47 5 8 5 5 4 0.003790.01692 UTI IMF - 0.0011 0.0033 0.0058 0.0049 0.0013 0.0043 0.0017 0.0028 0.0014 0.0060 0.003060.00112 22 18 85 11 17 71 7 36 8 4 2 2 UTI LMF 0.0002 0.0002 0.0001 0.0001 0.0002 0.0002 0.0002 0.0002 0.0001 0.0001 0.000270.00026 62 01 04 46 41 51 4 21 73 97 3 2

0.05 0.04 0.03 0.02 0.01 0 W1 -0.01 -0.02 -0.03 -0.04 -0.05 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13

UTI BMF UTI IMF UTI LMF

A C OMPA R A TI V E AN A L YS I S OF U T I MU TU A L FU ND S C HE ME S RE T U RN S I N RS

Interpretation
Above table & graph shows performance of UTI Mutual Fund returns of different Schemes. Where UTI Income fund & liquid fund shows +ve returns & Balance fund shows ve returns.

FINDINGS
The following Findings are made based on Analysis & Interpretation of different Mutual Fund Companies (HDC, ING VYSYA, LIC, TATA & UTI). During period of study from 07-12-2009 to 29-02-2010. Comparative analysis of Balance Mutual Fund shows sample companies from last 13 weeks of returns shows ve performance of all Mutual Fund Returns. Income Mutual Fund schemes of different sample companies shows high fluctuations & -ve returns during period of study. The Liquid Mutual Fund Schemes of different sample companies shows 0 & -ve returns. Comparative analysis of HDFC different Mutual Fund Schemes shows ve performance between Balance, Income & Liquid Mutual Funds. Comparative analysis of ING VYSYA Income Mutual Fund Scheme shows +ve returns & Balance & Liquid Mutual Fund Schemes shows 0 & -ve returns. Comparative analysis of LIC different Mutual Fund Schemes shows ve performance of returns. Comparative analysis of TATA Income Mutual Fund Scheme shows ve performance or returns & Balance & Liquid Mutual Fund Schemes shows ve & 0 performance. Comparative analysis of UTI different Mutual Fund Scheme shows +ve returns in Liquid & Income Mutual Fund Schemes & Balance Mutual Fund Scheme shows ve returns.

SUGGESTIONS
The following suggestion are offer to the Organization & Investors based on analysis & interpretation of difference Mutual Fund sample companies & Mutual Fund Schemes. Investors can choose LIC Income Mutual Fund for +ve returns. Investors can invest TATA Income Mutual Fund & UTI Income Mutual Fund. Liquid Mutual Fund of difference sample companies shows ve & 0 returns in highly volatility market except UTI Liquid Mutual Fund. UTI Liquid Mutual Fund Scheme shows efficiency Management of Mutual Fund Securities. The above sample companies portfolio service were shows enable forecast market volatility except UTI, LIC & TATA Mutual Fund. systematic risk. Investors can choose any of these companies to get higher expected returns from their investment & minimize the market or

CONCLUSION
It is to be concluded that the performance of mutual funds will depends on effectiveness and efficiency of the concerned fund manager that the way he allocate the funds and diversify. The investors should understand the market movements and invest accordingly. It is concluded that few funds have given good returns to the investors and few have given low returns. Finally it is concluded that mutual funds investments are subject to market risk, the investors are advised to check the issue prospectus before their investments in any area.

BIBLIOGRAPHY
B OOKS Investment management Financial services Avdhani M.Y.Khan

WEBSITES
www.google.com www.Amfiindia.com www.bseindia.com www.nseindia.com www.zensec.com www.njindiainvest.com www.hdfcfund.com www.ingvysyamf.com www.licmutual.com www.tatamutualfund.com www.utimf.com

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