A STUDY ON OVERALL COMPARATIVE ANALYSIS OF NET ASSET VALUE OF MUTUAL FUND FOR ADITYA BIRLA MONEY LIMITED, COIMBATORE

A STUDY ON OVERALL COMPARATIVE

ANALYSIS OF NET ASSET

VALUE OF MUTUAL FUND

FOR ADITYA BIRLA MONEY LIMITED, COIMBATORE

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1.           EXECUTIVE SUMMARY

            In few years Mutual Fund has emerged as a tool for ensuring one’s financial well being. Mutual Funds have not only contributed to the India growth story but have also helped families tap into the success of Indian Industry.. The main reason the number of retail mutual fund investors remains small is that nine in ten people with incomes in India do not know that mutual funds exist. But once people are aware of mutual fund investment opportunities, the number who decide to invest in mutual funds increases to as many as one in five people. The trick for converting a person with no knowledge of mutual funds to a new Mutual Fund customer is to understand which of the potential investors are more likely to buy mutual funds and to use the right arguments in the sales process that

            The first part gives an insight about Mutual Fund and its various aspects, the Company Profile, Objectives of the study, Research Methodology. One can have a brief knowledge about Mutual Fund and its basics through the Project.

            The second part of the Project consists of data and its analysis collected from various sources such as primary data and secondary data. I got primary data from Aditya birla money ltd, Coimbatore about the mutual fund and its operation. For analysis and interpretation I used secondary data from various websites, journals, past performance and experts opinion. I visited other AMCs in Coimbatore to get some knowledge related to my topic. I studied about the products and strategies of other AMCs in Coimbatore to know why people prefer to invest in those AMCs.   This Project covers the topic “A Study of Performance of Mutual fund houses and NAV Comparison of Various schemes.”  The data collected has been well organized and presented. I hope the research findings and conclusion will be of use.

1.1            INTRODUCTION

Mutual funds have a major role in India and lot of people preferring to select mutual fund as their investment opportunities. In India lot of banking and insurance companies are also providing mutual funds to public. It is found that mutual fund is a great player in the money market. So I am hereby starting a project titled study on overall comparison on mutual fund which will analyse the major 5 player in mutual fund industry by Aditya birla taked as base. Five companies were selected and compared and NAV was calculated

A mutual fund is nothing more than a coming together of a group of investors like you who contribute different sums of money to make up a large lump sum. The money collected is invested by the fund manager in stocks, bonds and other securities - across companies, industries and sectors and in some cases, across countries as well. As an investor,  units in proportion to the money invested. Since you own units of the fund, it makes you less reliant on the success or failure of any individual stock, which would have been the case if you had invested directly in the shares of a single company.

1.2 Overview of MUTUAL FUND

What is a Mutual fund

A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the gathered  money into specific securities (stocks or bonds). When you invest in a mutual fund, you are buying units or portions of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund.

Figure 1.1

               

 

1.2.1  HISTORY OF MUTUAL FUND

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. 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 qualities wise as well as quantity wise. Before, the monopoly of the market had seen an ending phase; the Assets Under Management (AUM) was Rs67 billion. The private sector entry to the fund family raised the amount to Rs. 470 billion in March 1993 and till April 2004; it reached the height if Rs. 1540 billion.

1.2.1.1. First Phase – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked 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.

1.2.1.2.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.

1.2.1.3.Third Phase – 1993-2003 (Entry of Private Sector Funds)

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..

1.2.1.4. 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

1.2.2 Type of Mutual Fund Schemes

1.2.2.1 BY STRUCTURE

1.2.2.1.1 Open Ended Schemes

An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.

1.2.2.1.2 Close Ended Schemes

A close-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. 

1.2.2.1.3 Interval Schemes

Interval Schemes are that scheme, which combines the features of open-ended and close-ended schemes. The units may be traded on the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV related prices.

1.2.2.2 BY NATURE

Under this the mutual fund is categorized on the basis of  Investment Objective. By nature the mutual fund is categorized as follow:

1.2.2.2.1 Equity fund:

These funds invest a maximum part of their corpus into equities holdings. The structure of the fund may vary different for different schemes and the fund manager’s outlook on different stocks. The Equity Funds are sub-classified depending upon their investment objective, as follows:

1.2.2.2.2 Debt funds:

The objective of these Funds is to invest in debt papers. Government authorities, private companies, banks and financial institutions are some of the major issuers of debt papers. By investing in debt instruments, these funds ensure low risk and provide stable income to the investors. Debt funds are further classified as:

• Gilt Funds:
• Income Funds
• MIPs
• Short Term Plans
• Liquid Funds

1.2.2.2.3 Balanced funds:

As the name suggest they, are a mix of both equity and debt funds. They invest in both equities and fixed income securities, which are in line with pre-defined investment objective of the scheme. These schemes aim to provide investors with the best of both the worlds. Equity part provides growth and the debt part provides stability in returns.                  .

1.2.2.3 BY INVESTMENT OBJECTIVE

• Growth Schemes: Growth Schemes are also known as equity schemes. The aim of these schemes is to provide capital appreciation over medium to long term.

• Income Schemes: Income Schemes are also known as debt schemes. The aim of these schemes is to provide regular and steady income to investors.

• Balanced Schemes: Balanced Schemes aim to provide both growth and income by periodically distributing a part of the income and capital gains they earn.
• Money Market Schemes: Money Market Schemes aim to provide easy liquidity, preservation of capital and moderate income.

1.2.2.4 OTHER SCHEMES

• Tax Saving Schemes: Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from time to time
• Index Schemes: Index schemes attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50.
• Sector Specific Schemes: These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents

Chart 1.1

RISK vs RETURN

1.2.3    NAV (NET ASSET VALUE)

A mutual fund is a  common investment vehicle  where the assets of the fund be long directly to the investors. Investors’ subscriptions are accounted for by the fund not as liabilities or de posits but as Unit Capital. On the other hand,  the investments made on behalf of the  investors are reflected on  the assets  side  and  are  the  main  constituent  of the  balance  sheet.  There  are, however,  liabilities  of  a  strictly  short-term  nature  that  may  be  part  of  the balance  sheet.  The  fund’s  Net  Assets  a re  therefore   de fined  as  the  assets minus t he  liabilities.  As there  are  many  investors in  a  fund,  it is  common practice  for mutual funds to compute the  share of each investor on the  basis of the value  of Net Assets per Share/Unit, commonly known as the  Net Asset Value (NAV).

1.3        ROLE OF 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 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.

Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to a professional and healthy market with ethical lines enhancing and maintaining standards. It follows the principle of both protecting and promoting the interests of mutual funds as well as their unit holders.

The Association of Mutual Funds of India works with 30 registered AMCs of the country. It has certain defined objectives which juxtaposes the guidelines of its Board of Directors.

1.3.1. SEBI Guidelines for Mutual Funds

·      Mutual funds cannot invest more than 10 per cent of the total net assets of a scheme in the short-term deposits of a single bank, the Securities and Exchange Board of India said on Monday.

·      Announcing guidelines for parking of funds in short-term deposits of scheduled commercial banks (SCBs) by mutual funds, the regulator said that investment cap would also take into account the deposit schemes of the bank's subsidiaries.

·      The Sebi has also defined 'short term' for funds' investment purposes as a period not exceeding 91 days.

·      Besides, the parking of funds in short-term deposits of all SCBs has been capped at 15 per cent of the net asset value (NAV) of a scheme, which can be raised to 20 per cent with prior approval of the trustees.

·      The parking of funds in short-term deposits of associate and sponsor SCBs together should not exceed 20 per cent of total deployment by the MF in short-term deposits, it added.

·      The Sebi said that these guidelines are aimed at ensuring that funds collected in a scheme are invested as per the investment objective stated in the offer document of an MF scheme.

·      The new guidelines would be applicable to all fresh investments whether in a new scheme or an existing one. In cases of an existing scheme, where the scheme has already parked funds in short-term deposits, the asset management company have been given three-months time to conform with the new guidelines.

·      The Sebi has also asked the trustees of a fund to ensure that no funds are parked by a scheme in short term deposit of a bank, which has invested in that particular scheme.

2.                 Literature review.

‘Mutual funds are as much about marketing as investing in the 1990’s which is why the hoary cliché’ Mutual funds are sold, not bought,’ is a true as ever. As Glorianne Stormberg once told canedian business magazine, the fund business may have started out in the portfolio management business, but ‘some where along the line, the marketers got hold of it, and the advisory function has been almost superseded by the sales function’

-          Jonathan Chevreau, the wealthy boomer

Successful fund marketing creates value for the fund companies, dealers and unit holders so that each is satisfied. The definition goes much deeper than simply ‘selling something to nobody’. Fund marketers must understand both the needs and values side of the equation and product, ideas and services, Side of the equation. Not only must marketing fully understand both sides of the equation. Not only must marketing must understand the both side of the equation, but it must also effectively communicate the details of each in order to successfully bridge the gap between the two. Every facet of modern marketing has been effectively employed to dramatically grow the Indian mutual fund industry.

2.1 Aditya Birla Group

The Aditya Birla Group is one of India's largest business houses. Global in vision, rooted in Indian values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. The Group's operations span 66 state of the art, straddling India, Thailand, Malaysia, Indonesia, Egypt, Philippines, Canada, Australia and China.

A US $28 billion corporation with a market cap. of US $31.5 billion and in the League of Fortune 500, the Aditya Birla Group is anchored by an extraordinary work force of 130,000 employees, belonging to 30 different nationalities. Over 50 per cent of its revenues flow from its operations across the world.

The Aditya Birla Group is a dominant player in all its areas of operations viz; Aluminium, Copper, Cement, Viscose Staple Fibre, Carbon Black, Viscose Filament Yarn, Fertilisers, Insulators, Sponge Iron, Chemicals, Branded Apparels, Insurance, Mutual Funds, Software and Telecom. The Group has strategic joint ventures with global majors such as Sun Life (Canada), AT&T (USA), the Tata Group and NGK Insulators (Japan), and has ventured into the BPO sector with the acquisition of Trans Works, a leading ITES/BPO company.

2.1.1 COMPANY PROFILE

Company Name                                              : Aditya Birla Group

Established on                                                 :1870

Chairman                                                         : Mr Kumara Mangalam Birla

Directors                                                         : Mr S Aga

                                                                          Mr D Battacharya

                                                                          Mr S K Jai    

Principal place                                                 : Mumbai

Corporate Address                                          :  Aditya birla group,

                                                                         4^th floor, C Wing,

                                                                        Aditya birla centre,

                                                                        Mumbai 400 030                                

2.1.2 Group Companies

Grasim: Grasim Industries Limited was established as a textiles manufacturer in 1948. Today, Grasim deals in Viscose Staple Fibre (VSF), Cement, Sponge Iron, Chemicals and Textiles.                          .

Hindalco: Established in 1958, Hindalco deals in Aluminium and Copper and is an industry leader in both.             .    .

Aditya Birla Nuvo: Aditya Birla Nuvo is a diversified business conglomerate with interests in viscose filament yarn (VFY), carbon black and branded garments.                                  .
Ultra Tech Cement: Ultra Tech Cement manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Cement.

Apart from the Group companies, other companies of the Aditya Birla Group are:                    .

Indian companies

• PSI Data Systems 894
• TransWorks
• Essel Mining & Industries Ltd
• Shree Digvijay Cement Ltd
• Idea Cellular Ltd.
• Aditya Birla Insulators Limited

2.1.3Birla Sunlife  Mutual Fund

            Birla sunlife mutual fund is a joint venture of  the Aditya birla group and the Sunlife financial ltd

Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment managers of Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun Life Financial Services Inc. of Canada. The joint venture brings together the Aditya Birla Group's experience in the Indian market and Sun Life's global experience.

Established in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading flagships of Mutual Funds business managing assets of a large investor base. Our solutions offer a range of investment options, including diversified and sector specific equity schemes, fund of fund schemes, hybrid and monthly income funds, a wide range of debt and treasury products and offshore funds.

Heritage

The Aditya Birla Group

The Aditya Birla Group is one of India's largest business houses. Global in vision, rooted in Indian values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. The Group's operations span 66 state of the art, straddling India, Thailand, Malaysia, Indonesia, Egypt, Philippines, Canada, Australia and China.

Sun Life Financial

Sun Life Financial Inc is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial Inc and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuds.

2.1.3.1 Birla Sunlife Mutual Fund Schemes

Birla Sun Life Mutual Fund came into existence in 1994. The mutual fund is managed by Birla Sun Life Asset Management Company Ltd. (BSLAMC) which is joint venture between the Aditya Birla Group and the Sun Life Financial Services Inc. of Canada.

2.1.4  MAJOR PLAYERS IN MUTUAL FUND

                                         i.    ICICI Mutual Fund

                                       ii.    Reliance Mutual Fund

                                      iii.    UTI Mutual Fund

                                      iv.    SBI Mutual fund

                                        v.    Kotak Mutual Fund

                                      vi.    HDFC Mutual Fund

                                    vii.    Sundaram Mutual Fund

                                   viii.    LIC Mutual Fund

                                      ix.    Principal

                                        x.    Franklin Templeton

2.2 OBJECTIVE OF THE STUDY

           

2.2.1 Primary Objective

The primary objective of the study is to calculate and compare the NAV of different mutual funds and judging to a customers to choose good mutual fund according to its performance.

2.2.2 Secondary Objectives

Following are the secondary objective

·         To get an insight knowledge about mutual funds

·         Understanding different ratios and portfolios so as to tell the distributers about these terms, by this, managing the relationship with the distributers

·         To aware about the mutual fund performance level in the present market

·         To analyse the competitive study between other leading mutual funds in the present market

·         To know the awareness level of mutual funds and its cases among investors.

·         Find out the way and mean to improve on the service by Aditya birla Money Ltd

2.3  SCOPE OF THE STUDY

The main purpose of doing this project was to know about mutual fund and its functioning. This helps to know in details about mutual fund industry right from its inception stage, growth and future prospects. It also helps in understanding different schemes of mutual funds. Because my study depends upon prominent funds in India and their schemes like equity, income, balance as well as the returns associated with those schemes. The project study was done to ascertain the NAV calculation, comparison of different NAV, and comparison performance associated with the mutual funds. Ultimately this would help in understanding the benefits of mutual funds to investors.         .                             

1.                RESEARCH METHODOLOGY

                  Research is an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research.

                  A research method refers to the methods the researchers use in performing research operations. Research Methodology is a way to systematically solve the research problem. By research methodology not only the research methods are considered but also the logic behind the methods used in the context of the research study and explanations are given on why a particular technique is used.

This report is based on primary as well secondary data, however primary data collection was given more importance since it is overhearing factor in attitude studies. One of the most important users of research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem .It also helps in collecting the vital information that is required by the top management to assist them for the better decision making both day to day decision and critical ones

3.1  Research Design

The research design that is adopted in this study is descriptive design. Descriptive research is used to obtain information concerning the current status of the phenomena to describe, "What exists" with respect to variables or conditions in a situation. The focus of this study was on self-reported decisions made by various investors regarding the investment patterns in mutual funds. Thus it involves Statement of the problem, Identification of information needed to solve the problem, Selection or development of instruments for gathering the information, Identification of target population and determination of sampling procedure, Design of procedure for information collection, Collection of information, Analysis of information, Generalizations and/or predictions.

3.2 Sampling Technique

The sampling technique used is random sampling. Here the most performing funds and mutual fund companies are selected as sample. These samples are closely and comparatively acting equal and strong performance. Most popular mutual fund companies and their most attractive schemes are here selected as sample for comparison. Here samples are selected on the  basis of  performance of funds

3.2.1 Sample Size

            The sample size for the study is five mutual fund companies and their five similar scheme in mutual fund. These samples are closely competing and comparing by setting base as Birla Sunlife Mutual Fund. five year net asset value is taken for comparison

3.2.2. Sources of Data

3.2.2.1. Secondary data

Secondary data consist of information that already exists somewhere, have been collected. Secondary data is collected from company websites, other websites, company fact sheets, magazines and brochures. In this study primary data are not collected . all the data are secondary data and all the data are collected through Internet,  Journals, Articles, and experts opinion.

3.2.3 Statistical tools

·         Simple Percentage

·         Correlation

·         Moving average

·         Sharpe ratio

·         Beta

·         Alpha

·         Standard deviation

2.                DATA ANALYSIS AND INTERPRTATION

The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exist among data groups. Thus, “in the process of analysis, relationships or differences supporting or conflicting with original or new hypotheses should be subjected to statistical tests of significance to determine with what validity data can be said to indicate any conclusions.”

            In this study data analysis are classified as three phase

·         Phase I

Performance analysis of various Mutual fund company with Birla Sunlife Mutual fund company.

·         Phase II

Correlation analysis of five mutual fund AMC with Aditya birla AMC.

·         Phase III

Performance analysis of various Mutual fund schemes of various companies are compared with the similar schemes  in Birla sunlife mutual fund

·         Phase IV

Sectorwise analysis of different mutual fund of various mutual fund company

·         Phase V

Comparison of five mutual fund house using statistical mesures       

4.1 AMC Comparison (Phase I)

Here the performance of various mutual fund companies are analysed. The sample size is five and following are the selected five mutual fund companies

·         Birla Sunlife Mutual Fund

·         Franklin Temptaion Mutual Fund

·         SBI Mutual Fund

·         Tata Mutual Fund

·         Reliance Mutual Fund

4.1.1  Birla Sunlife V/s Franklin Temptation

            Here the asset value or asset managed by the franklin temptation mutual fund company compared with the Birla sunlife Mutual fund company. It is the overall performance comparison of the two Mutual fund company.

Table no 4.1

Fund Managed (amount in crore)
MF Co	April 2009	May 2009	June 2009	July 2009	Aug 2009	Sep 2009	Oct 2009	Nov 2009	Dec 2009	Jan 2009	Feb 2009	Mar 2009
Birla	51.8	56.6	56.3	57.3	62.9	63.1	65.1	69.6	68.1	62.6	66.3	62.3
Franklin	20.6	23.6	25.5	27.6	28.9	28.4	29.9	30.6	32	32.3	33.3	33.3

Chart 4.1

                            

                             The above chart shows that the Birla Mf have a huge volume of asset comparing to franklin Mf . The volume of Birla  asset is double than franklin MF. So we can judge that the Birla mutual fund is more safe while comparing to Franklin MF . But  if we comparing the growth of volume of fund franklin have 50% increase in their fund during one year. While comparing the growth franklin is more performing.

4.1.2 Birla MF V/S SBI MF

Here the asset value or asset managed by the SBI mutual fund company compared with the Birla sunlife Mutual fund company. It is the overall performance comparison of the two Mutual fund company.

Table no : 4.2

Fund Managed (amount in crore)
MF Co	April 2009	May 2009	June 2009	July 2009	Aug 2009	Sep 2009	Oct 2009	Nov 2009	Dec 2009	Jan 2009	Feb 2009	Mar 2009
Birla	51.8	56.6	56.3	57.3	62.9	63.1	65.1	69.6	68.1	62.6	66.3	62.3
SBI	30.9	34.4	34.1	34.2	34.1	34.9	38.3	38.8	37.9	36.6	36.1	37.4

Chart no 4.2

The above chart shows the birla sunlife mutual fund have a huge volume of asset they are managing but it have frequent fluctuation positively and negatively. But in SBI mutual fund a low volume of fund they managed but thy have a stability throughout the year. But the growth rate is very low in SBI MF. During one year SBI MF raised 7 crore and BSMF raised 10 crore.

4.1.3 Birla Sunlife MF V/S TATA MF 

Here the asset value or asset managed by the SBI mutual fund company will compared with the Birla sunlife Mutual fund company. It is the overall performance comparison of the two Mutual fund company.

Table no 4.3

Fund Managed (amount in crore)
MF Co	April 2009	May 2009	June 2009	July 2009	Aug 2009	Sep 2009	Oct 2009	Nov 2009	Dec 2009	Jan 2009	Feb 2009	Mar 2009
Birla	51.8	56.6	56.3	57.3	62.9	63.1	65.1	69.6	68.1	62.6	66.3	62.3
TATA	19.4	21.3	21.2	20.6	20.5	20.2	22.7	24.9	23.8	22.3	22.6	21.9

Chart no 4.3

            TATA Mutual fund have a very low Asset holding comparing to BSLMF. TATA Mutual fund shows a very low rate of growth tendency and it reflecting lot of negative movement of fund during one year. The performance of TATA Mutual fund is not satisfactory while comparing with Birls Sunlife MF.

4.1.4  Birla Sunlife Mutual Fund V/S Reliance MF

Here the asset value or asset managed by the SBI mutual fund company will compared with the Birla sunlife Mutual fund company. It is the overall performance comparison of the two Mutual fund company.

Table no 4.4

Fund Managed (amount in crore)
MF Co	April 2009	May 2009	June 2009	July 2009	Aug 2009	Sep 2009	Oct 2009	Nov 2009	Dec 2009	Jan 2009	Feb 2009	Mar 2009
Birla	51.8	56.6	56.3	57.3	62.9	63.1	65.1	69.6	68.1	62.6	66.3	62.3
Reliance	88.4	103	108	108	117	118	117	122	120	117	116	111

Char no 4.4

            The above chart shows that the fund volume of Reliance mutual fund is twice larger than the Birla Sunlife MF. Reliance MF touching at the peek of 120 Crore. Reliance mutual fund have a tremendous  growth from 88 k to 120 k. But at the end of the year the reliance MF shows a declining of asset volume from 120 to 111 k. Performance of Reliance MF is well while comparing to BSLMF.

4.1.5 Birla Sunlife MF V/S UTI MF

Here the asset value or asset managed by the SBI mutual fund company will compared with the Birla sunlife Mutual fund company. It is the overall performance comparison of the two Mutual fund company.

Table no 4.5

Fund Managed (amount in crore)
MF Co	April 2009	May 2009	June 2009	July 2009	Aug 2009	Sep 2009	Oct 2009	Nov 2009	Dec 2009	Jan 2009	Feb 2009	Mar 2009
Birla	51.8	56.6	56.3	57.3	62.9	63.1	65.1	69.6	68.1	62.6	66.3	62.3
UTI	54.5	63.4	68	67.3	74	73.6	76.8	80	78.2	74.5	79.3	80.2

Chart no 4.5

            The above chart reveal that UTI MF is the close competitor of BSLMF. In at the beginning of the year both companies manage there asset in an equal level ie (50 – 55 k) but after 6 moth UTI’s fund will touch the peek of 80k and at the end of the year the UTI touches the peek 80 k. UTI shows a good growth position than Birla Sunlife MF.

4.2 Correlation Between AMC’s

              Correlation between the two variable can be describe through the Karl Pearson Coefficient of correlation.

Table no 4.5.1

Fund Managed (amount in crore)
MF Co	April 2009	May 2009	June 2009	July 2009	Aug 2009	Sep 2009	Oct 2009	Nov 2009	Dec 2009	Jan 2009	Feb 2009	Mar 2009
Birla	51.8	56.6	56.3	57.3	62.9	63.1	65.1	69.6	68.1	62.6	66.3	62.3
Franklin	20.6	23.6	25.5	27.6	28.9	28.4	29.9	30.6	32	32.3	33.3	33.3
SBI	30.9	34.4	34.1	34.2	34.1	34.9	38.3	38.8	37.9	36.6	36.1	37.4
TATA	19.4	21.3	21.2	20.6	20.5	20.2	22.7	24.9	23.8	22.3	22.6	21.9
Reliance	88.4	103	108	108	117	118	117	122	120	117	116	111
UTI	54.5	63.4	68	67.3	74	73.6	76.8	80	78.2	74.5	79.3	80.2

Correlation Formula

             

           

Ø  Birla v/s Franklin ,       r = 0.84

Ø  Birla v/s SBI,               r = 0.87

Ø  Birla v/s TATA,          r = 0.81

Ø  Birla v/s Reliance,       r = 0.92

Ø  Birla v/s UTI,              r = 0.92

                 The Karl Pearson co efficient of correlation shows good correlation between birla sunlife mutual fund with all other selected mutual funds. Its shows a good positive relation between all the mutual fund AMC’s  in the mutual fund industry

4.2 NAV Comparison

            Here the performance of various fund provided by several mutual fund housed are analyzed. NAV of each fund taken for calculation, the time period is determined as on year. Birla sunlife mutual funds companies different schemes are taken as base. Following  schemes are taken for NAV Comparison of different schemes.

Categories

·         Equity

·         Gilt

·         Debt

·         Liquid

·         Balanced

·         Equity Tax planning

·         Equity Diversified

·         Equity Sector

·         Equity Index

·         Debt short term

·         Debt Income

·         Debt MIP 

·         Growth

4.2.1 Equity fund

            Here five AMC’s similar schemes which are under equity category are selected for comparison. Net value for 5 year is taken for comparison

Table No 4.6

Scheme	NAV(in crore ) from April 05 to March 10					Legend
	March 2006	March 2007	March 2008	March 2009	March 2010
SBI Magnum Equity fund	29	26.32	33.05	20.11	39.87
Birla Sun Life Equity fund	150	173	212	128	252.9
Kotak 30	58.5	65.2	88.8	57	94.6
HDFC Growth fund	40.5	44.4	62.1	37.5	74.5
Reliance equity fund	10.31	10.6	14	9.6	14.9

Chart no: 4.6

                            The above table shows that Birla sunlife equity fund started with 150 NAV at the beginning of financial year 2006 and the value reached the peek at December 2007 around 252 and at the end of  financial year 2009 it reached at 257 and after that it projects an increasing tendency.

Chart no: 4.6.1

                            The above chart clearly reveal the performance of mutual fund under Equity category. In this chart the base selected is 100 and all five equity mutual fund schemes are started with 100.

                            Birla sunlife equity fund performing very well and it have a great growth while comparing with other schemes. This particular fund shows a growth tendency higher than the Benchmark index 

                            Performance of SBI equity mutual fund and Kotak 30 is good. Kotak 30 also performing very well it shows an increasing tendency shows the positive growth. However the growth of ICICI prudential and franklin are not satisfactory.

                            The overall performance of the mutual fund under equity category shows a great increase in the net asset value . Birla sunlife mutual fund equity schemes are suggestible to customers.

4.3.2 Gilt Fund

Here five AMC’s similar schemes which are under Gilt category are selected for comparison. Net value for 5 year is taken for comparison.

Table No 4.7

Scheme	NAV(in crore ) from April 05 to March 10					Legend
	March 2006	March 2007	March 2008	March 2009	March 2010
Birla Sunlife Equity G Sec	18.8	19.8	20	23.44	26.3
SBI Magnum Gilt Fund	16.3	17.2	18.2	18.9	18.94
ICICI Prudential GFIP	16.35	17.2	18.2	19	31.45
Kotak Gilt saving plan	17	18	19.5	20.5	21.39
HDFC Gilt fund LTP	15.2	15.4	15.6	17.9	18.72

Chart no 4.7

           

The above diagram shows the net asset value of gilt fund offered by different mutual fund houses during one year from April 06 – March 10. Birla sunlife gilt fund shows a very high net asset value and high growth rate. It starts the value at 19 and end at the year 26 it shows 10% growth during one year. Through the above diagram we can judge that Birla sunlife Gilt fund is the good scheme in select in customers investment portfolio. In the long run ICICI prudential gilt plan shows high return and growth while comparing to other fund.

Chart no 4.7.1

In Short run ie one year starting from April 2009 to March 2010 shows birla sunlife gilt fund shows a huge growth while comparing other fund.

ICICI prudential G Sec fund also shows a growth in the NAV at the initial stage the but after July NAV shows a decrees trend but at the end of the year it become the same level of NAV at the beginning of the year.

            Kotak Gilt saving plan shows a little growth in NAV but it is more constant than any other plan it have a little fluctuation in the NAV of the particular scheme. Comparing to Birla Sunlife Mutual fund it shows a lesser growth trend and lesser fluctuation in the NAV.  

            HDFC Gilt plan showed a huge increase in the NAV at the time of beginning of financial year but after that it fall down and continuously shows a declining NAV.       

SBI Magnum Gilt plan shows a huge decrees in the NAV of the particular scheme

4.3.3 Debt Fund

Here five AMC’s similar schemes which are under debt category are selected for comparison. Net value for 5 year is taken for comparison

Table no 4.8

Scheme	NAV(in crore ) from April 05 to March 10					Legend
	March 2006	March 2007	March 2008	March 2009	March 2010
Birla sun life dynamic	10.7	11.4	12.6	14.34	15.4
HDFC FRF	11.7	12.6	13.6	14.8	15.5
ICICI prudential  STP	13.3	14.3	15.7	18.2	19.3
Kotak income plus	12.8	12.9	13.9	12.9	14.7
SBI Dynamic bond plus	10.3	10.6	10.9	10.55	11

Chart no 4.8

The above chart shows that Birla sunlife Mutual fund and ICICI prudential mutual fund are shows high performance which comparison to other debt funds. This chart shows the long run aspect and it covers five year net asset value so the growth is constant and reliable. In the long run Kotak income plus shows high fluctuation in net asset value through out the entire five year. It reached in the peek at August 2008 and decease at march 2008.

Chart no 4.8.1

            The above chart is shows the aspect which is a one year period. From April 09 to march 10. It clearly shows that Kotak debt fund shows huge increase in  the net asset value while comparing others debt fund.

            Birla Sunlife mutual fund and ICICI debt fund are shows same trend in increasing manner and HDFC also shows better performance but lower than Birla and ICICI. SBI mutual fund shows low growth in the net asset value in short run also.

            Here we can suggest to customer to select Birla Sunlife debt fund or ICICI Prudential debt fund. Even though  Kotak debt fund shows higher performance in last year the growth of this fund is very less in long run and it continuously shows fluctuating trend. But Birla Sunlife mutual fund shows good performance in both long run and short run. Birla sunlife dynamic bond fund shows 50% growth in last 5 year. So customer can add this fund in their portfolio.

4.3.4 Liquid Fund

Here five AMC’s similar schemes which are under Liquid category are selected for comparison. Net value for 5 year is taken for comparison

Scheme NAV(in crore ) from April 05 to March 10 Legend

March 2006 March 2007 March 2008 March 2009 March 2010

Birla sunlife cash manager 11.6 12.5 13.5 14.6 15.39

HDFC cash manager 14.5 15.6 16.9 18.3 19.2

ICICI prudential liquid 17.2 18.5 20 21.7 226

Kotak liquid 13.8 14.5 15.8 17.1 17.84

SBI magnum insta cash 15.7 16.8 18.11 19.6 20.44

Table no 4.9

Chart no: 4.9

The above chart show the growth and performance of liquid fund in mutual fund industry. Here the past 5 year data are collected for comparison. This chart will show that all the selected mutual funds are shows an equal performance. And there is a perfect growth and there is no fluctuation. HDFC cash manager fund is performing very well the compares to others. It shows 35 % of growth during this five year.

Chart no 4.9.1

The above chart represent the short run aspect . Here we can see some variation in net asset value. Here Birla cash manager shows high growth comparing with other mutual funds and HDFC cash manager also shows similar growth in net asset value. Kotak, SBI, and ICICI prudential mutual funds are shows a decreased growth in the past one year.

Birla sunlife liquid fund and  HDFC liquid funds are shows 6% annual increase in the net asset value. And both are performing very well. We can suggest the investors to invest in HDFC cash manager liquid fund or Birla Sunlife liquid fund because both are shows maximum performance.

4.2.5 Balanced Fund

Here five AMC’s similar schemes which are under balanced fund category are selected for comparison. Net value for 5 year is taken for comparison.

Table no 4.10

Scheme NAV(in crore ) from April 05 to March 10 Legend

March 2006 March 2007 March 2008 March 2009 March 2010

Birla Sun Life 95 153 168 206 164 279

HDFC balanced Fund 28.8 28.9 34.11 26.15 47.5

SBI Magnum Balanced fund 33.6 32.9 40.36 29.05 48.46

ICICI prudential Balanced Fund 30.6 33.4 37.2 26.3 41.6

Kotak Balance 22.9 22.6 21.5 15.7 22

Chart no 4.10

The above chart will show the five year growth of net asset value of each AMC held under balanced fund. The chart will shows that net asset value of each AMC’s are fluctuating in a similar manner even though their is a difference in growth.

Birla Sunlife 95 shows huge growth in the long run, at December 2007 it reach to peek with a NAV of 280 and their after it showed a decline and at the end of March the performance jumped back to the peak. Birla sunlife 95 shows a good growth while comparing other similar fund. It shows 85% of growth within five year

In the case of SBI and HDFC both are showed a good growth though it was less than birla sunlfie 95’s growth. HDFC balanced fund shows 38 % of growth and SBI balanced fund showed  24% of growth in last five year. ICICI prudential Balanced fund and kotak balanced fund are shows less growth while comparing other balanced mutual funds. 

Chart no 4.10.1

The above chart  showed the one year growth of balanced fund of different AMC’. In short run moving average shows that HDFC balanced fund shows maximum net asset value in the ending the financial year. HDFC Balanced fund shows an increasing trend in the last year. In the last financial year HDFC balanced fund’s growth rate increased to 44% from 38%. 

Birla Sunlife 95 also shows a good growth rate but less than HDFC balanced fund. BSL 95 shows 41% of growth of net asset value in last year. 

4.2.6  Equity tax saving

Here five AMC’s similar schemes which are under equity tax saving category are selected for comparison. Net value for 5 year is taken for comparison.

Table no 4.11

Scheme NAV(in crore ) from April 05 to March 10 Legend

March 2006 March 2007 March 2008 March 2009 March 2010

Birla Sun Life Tax Plan 10.3 10.5 11.8 6.4 12.9

HDFC Taxsaver 131 134 151.5 100 194

ICICI Prudential Tax plan 86.7 82 92 53.6 126

SBI Magnum Tax Gain 44 52.51 50.6 32.5 57.8

Kotak Tax Saver 12 13.85 16.1 9.2 17.2

Chart no : 4.11

The above moving average chart shows the five year performance of equity tax saving mutual fund schemes. Base is 100 and it shows HDFC tax saving plan is leading with high volume and high rate of growth. Net asset value for the five year here shows that their is a fluctuating trend. 

HDFC tax saver shows a high growth trend and it shows a 33% of growth during this five year. ICICI prudential tax saver also shows 30% of growth in long run table. Birla Sunlife tax saver shows 20 % of growth in the net asset value. SBI tax saver and Kotak tax saver also shows 18%  growth in the net asset value during the past five financial years.

Chart no: 4.11.1

The above moving average chart shows that the short run growth of net asset value of tax saver equity mutual fund during the last financial year. Base is taken as 100. Here ICICI prudential tax saver shows 57.4 of growth in the last financial year. HDFC tax saver shows 46.5% of growth in the net asset value during the last financial year. SBI tax  saver and kotak tax saver fund shows similar growth rate at the end of year both the funds are shows 42% of growth in the last financial year. Birla Sunlife mutual fund shows a lower growth trend in short run while comparing to other tax saver mutual fund. It shows 20% of growth in the short run chart.

The above charts suggest an investor to choose HDFC tax saver fund because it is shows an increasing rate of growth in both long run and short run. Fund volume of the HDFC tax saver fund is also high while comparing other fund.

4.2.7  Equity Index Fund.

Here five AMC’s similar schemes which are under equity Index category are selected for comparison. Net value for 5 year is taken for comparison.

Table no: 4.12

Scheme NAV(in crore ) from April 05 to March 10 Legend

March 2006 March 2007 March 2008 March 2009 March 2010

Birla Sun Life Index Fund 34.8 36 47.8 30.6 52.6

HDFC Index Fund 33 37 42.5 28 46.1

ICICI Prudential Index Fund 29 34 43 28 49

SBI Magnum Index Fund 30 34 42 25 45

Tata Index Fund 21 24 28 18 31

Chart no: 4.12

The above diagram show the long run moving average from April 2006 to march 2010. The chart shows ICICI prudential index fund shows high growth rate while comparing other index fund. ICICI prudential index fund shows 41% of growth in the past five year.  The overall index fund shows the same trend in the market. In December 2007 it reached peek level and November 2008 it touched the least on at 31 march. There after a recovery trend is observed in the growth.

Birla sunlife index fund shows growth rate but less than HDFC index fund. It shows 33% of growth during the five year. SBI index fund and Tata index fund also shows a 33% growth in the last five years.

Chart no: 4.12.1

The short run moving average chart shows that the similar growth rate is exhibited in the overall mutual fund industry under tax saver scheme.

In the last financial year Birla Sunlife Index fund showed a 41.8% of growth. 42.8% of growth was lead by ICICI prudential index fund. HDFC index fund shows 39.3% of growth in the last financial year. SBI India and Tata Index fund showed a 41% to 44% growth in the last financial year 2009-2010.

The above analyses suggest an investor to choose ICICI prudential index fund to add in their portfolio because it shows maximum performance in both long and short run.

4.2.8  Equity Diversified Fund.

Here five AMC’s similar schemes which are under equity Index category are selected for comparison. Net value for 5 year is taken for comparison.

Scheme NAV(in crore ) from April 05 to March 10 Legend

March 2006 March 2007 March 2008 March 2009 March 2010

Birla Sunlife Advantage Fund 10.3 10.3 10.65 6.69 13.3

HDFC Capital Builder Fund 60 60.9 75 48 97.7

ICICI Prudential discovery fund 25.2 24.3 26.1 16.9 42.7

Reliance Equity fund 10.2 10.9 13.2 9.3 14

Kotak Contra Fund 10.2 11.6 11.5 6.6 11.6

Table no: 4.13

Chart no: 4.13

The above interpretation show that ICICI prudential discovery fund shows a maximum growth in the net asset value in the past five year moving average shows that prudential discovery fund has maximum growth in NAV. In long run kotak contra fund started at  lower than the base level and showed a growth trend But at December the economic conditions rad a dip and increased it showed 2007 boom period is not increased the net asset of kotak contra it showed a decreased trend thorough the five year. 

ICICI prudential shows a huge growth at the end of the fifth year. ICICI diversified fund shows 40% of growth in the net asset value during the five year. Birla sunlife diversified fund shows 23% of growth, HDFC capital builder fund shows 51% of growth,  Reliance equity fund shows 27% of growth and Kotak contra fund shows  12% of growth in the net asset value during the last five year

Chart no:4.13.1

   

The short run moving average chart showed that ICICI prudential diversified fund shows outstanding growth while comparing other equity diversified fund. ICICI prudential showed 60% of growth in the net asset value during the last year. 

Birla sunlife diversified shows 110% of growth , HDFC diversified fund showed 95% , Reliance diversified fund showed 66% of growth, and Kotak diversified fund showed 80% of growth in the last year.

From the above chart it can be interpreted is a good choice for the investors. It is a fund with lot of investment opportunities.

4.2.9  Debt Short term.

Here five AMC’s similar schemes which are under Short term debt category are selected for comparison. Net value for 5 year is taken for comparison

Table no: 4.14

Scheme NAV(in crore ) from April 05 to March 10 Legend

March 2006 March 2007 March 2008 March 2009 March 2010

Birla Sun Life Opportunity - - 10.1 10.3 10.4

HDFC Short Term Plan 12.5 13.3 14.6 16.7 17.9

ICICI Prudential Short 13.3 14.3 15.7 18.2 19.5

Reliance Short term fund 12.1 13.1 14.8 16.1 17.3

Kotak bond short term plan 12.5 13.4 14.8 16.3 17.7

Chart no: 4.14

The above chart shows that ICICI prudential short term fund is shows a maximum performance in the long run moving average chart. It shows a growth of 50% during the last one year. HDFC Short term plan shows a good growth rate. HDFC Short term fund shows 43.2% of growth in the last five year. Kotak short term fund shows 41.6% growth . Birla sunlife Opportunity fund shows a less growth rate.

Chart no: 4.14.1

The above chart showed that the kotak short term fund having high rate of growth as for as NAV calculated within last year. HDFC short term fund and Reliance short term fund  shows a similar growth in the net asset value. Even though ICICI prudential short term fund performance is very good in long run moving average chart but here this fund shows a lesser growth trend compared to other similar mutual fund  held under this category. Birla Sunlife short term fund shows a lower growth rate compared to other similar mutual funds. 

From the above chart it can suggested an investors that invest in ICICI prudential short term fund, because it shows maximum performance.

4.2.10  Debt Monthly Income Plan

Here five AMC’s similar schemes which are under montly income debt category are selected for comparison. Net value for 5 year is taken for comparison.

Table no: 4.15

Scheme NAV(in crore ) from April 05 to March 10 Legend

March 2006 March 2007 March 2008 March 2009 March 2010

Birla Sunlife MIP 39 17.8 18.9 20.8 21.7 24.8

HDFC MIP ST 29 12.4 12.7 13.5 13.6 16

ICICI Prudential MIP C 17.6 18.8 20.4 20.6 24.1

SBI Magnum MIP  21 15.7 16.5 17.9 16.7 19.1

Reliance MIP 61.6 12.5 13.4 14.2 14.2 20.2

Chart no: 4.15

The above chart will shows that the Reliance monthly income plan shows an outstanding performance in long run. It having 61% of growth in net asset value during the last 5 year. Birla Sunlife monthly income plan also shows 39% of growth in the last five year.  ICICI prudential montly income plan shows 36% of growth in the net asset value during the last five year. HDFC montly income plan shows 29% of growth in the last five year. SBI magnum montly income plan shows lesser growth in the last five year. It having only 21% of growth in the last five year.

Chart no: 4.15.1

The above chart shows that reliance monthly income plan having high growth in net asset value during the last year. The above two chart will reveal that reliance monthly income plan has good growth compared to other plans.

The above chart suggest that the investors to invest in reliance MIP to add in their portfolio. Because it shows an outstanding performance in long run and short run.

4.3 Sectorial analysis ( Phase III)

Sectorial Analysis of Five mutual funds

          Here five mutual fund schemes are taken from different Mutual Fund House having similar category. In third phase of data analysis and interpretation, classifying funds according to its allocation under different sectors. Each funds are differently allocated their assets into different sectors. For data analysis and  interpretation following mutual fund schemes are selected under different mutual fund houses.

Table no: 4.16

AMC	Scheme Name	Category	Type
Birla Sunlife Mutual Fund	Birla Equity Plan	Growth	Open Ended
SBI Magnum MF	SBI Magnum Global Fund	Growth	Open Ended
Tata Mutual Fund	Tata Growth Plan	Growth	Open Ended
Reliance Mutual Fund	Reliance Growth Fund	Growth	Open Ended
Franklin Temptation MF	Franklin India Prima Plus	Growth	Open Ended

            The above mentioned  five mutual fund schemes are under same category and from different AMC. Each mutual fund schemes having different portfolio in their investment. AMC’s funds are pooled in different securities with a flexible proportion of debt and equity. The above mentioned five funds majority of assets are allocated in equity shares.  these funds concentrate on one industry such as infrastructure, banking, technology, energy, real estate, power heath care, FMCG, pharmaceuticals etc. The idea is to allow investors to place bets on specific industries or sectors, which have strong growth potential.                                                 
 These funds tend to be more volatile than funds holding a diversified portfolio of securities in many industries. Such concentrated portfolios can produce tremendous gains or losses, depending on whether the chosen sector is in or out of favour. Sectoral mutual funds come in the high risk high reward category and are not suitable for investors having low risk reward category.

4.3.1 Birla Equity Plan

Mutual Fund               :  Birla Sunlife Mutual Fund.

Scheme Name             :  Birla Equity Plan

Scheme Type               :  Open ended

Scheme Category        : Growth

Launch date                :  27: Aug : 1998

Objectives of the fund : An open-ended growth scheme with the objective of long term growth of capital, through a portfolio with a target allocation of 90% equity and 10% debt and money market securities.

Minimum Subscription : 5000

Table no 4.17

Sectors	RS in Crores
Automobile  Sector	13.72
Financial  Sector	8.43
Technology  Sector	7.94
Engineering Sector	7.61
FMCG Sector	5.99
Diversified  Sector	5.84
Communication Sector	3.49
Cement Sector	3.01
Metals  Sector	2.76
Transportation  Sector	2.70
Construction  Sector	2.47
Textiles  Sector	2.17

Chart no: 4.16

            The graph represents the various sectors in which the company has invested in the terms of crores. The above graphs represents the graphical representation of Birla Sunlife Equity Fund. The graph show that birla equity fund is mainly concentrating on investment Automobile sector.  They have around 15% of holding.  Top Ten holding of birla equity fund shown below which are held under different sector

Table no: 5.17.1

Securities	Percentage of Holding
Infosys	4.4
Reliance Industries	3.6
TCS	3.5
Tata Steel	3.1
ONGC	3.1
ICICI Bank	2.9
ITC	2.8
BHEL	2.6
Bharti Airtel	2.4
Tata Motors	2.2

4.3.2 SBI Magnum Global

Mutual Fund               :  SBI Mutual Fund

Scheme Name             :  SBI Magnum Global Fund 94

Scheme Type               :  Open ended

Scheme Category        : Growth

Launch date                :  06-jun-2005

Objectives of the fund : Objective of the scheme is to provide investors with maximum growth opportunity.

Minimum Subscription : 2000

Table no: 4.18

Sectors	RS in Crore
Engineering  Sector	15
Construction Sector	13.5
Diversified Sector	10
Service Sector	9.45
Financial Sector	7.5
Chemical  Sector	6
Metal Sector	5.85
Technology Sector	4.8
Health Care Sector	2.7
Communication  Sector	2.68
Energy  Sector	1.85
FMCG  Sector	1.79
Automobile Sector	0.96

Chart no 4.17

The above graph represents the various sectors that the company has invested in the terms of crores. The above graphs represents the graphical representation of SBI Magnum Global Fund 94 . SBI global fund mainly concentrates on engineering sector and construction sector. Both are having around 15% of  holding in all the sector.

Table no: 4.18.1

Securities	Percentage of Holding
Redigton India	6.42
Bosch Ltd	5.05
Texmaco	4.18
Bajaj Holding	4.17
Asian Paints	3.79
BEML Ltd	3.74
UTV Software	3.56
Wyeth Ltd	3.25
Shree Cement	3.17
Oracle Financial Service	3.16

4.3.3 TATA Growth Fund

Mutual Fund               :  Tata Mutual Fund

Scheme Name             :  Tata Growth Fund

Scheme Type               :  Open ended

Scheme Category        : Growth

Launch date                :  15: Aug : 2000

Objectives of the fund : The investment objective of the scheme will be to provide income distribution and  medium to long term capital gains. The scheme will invest in equity and equity related instruments of well researched  growth oriented companies

Minimum Subscription : 5000

Table no: 4.19

Sectors	RS in Crore
Energy  Sector	19.92
Service  Sector	16.66
Financial Sector	9.15
Engineering Sector	8.68
FMCG Sector	8.45
Diversified  Sector	7.6
Technology Sector	6.1
Health Care Sector	5.36
Metals  Sector	3.9
Chemical  Sector	2.8
Construction  Sector	2.17
Communication  Sector	1.02
Cons Durable Sector	0.95

Chart no: 4.18

            The graph represents the various sectors in which company has invested in the terms of crores. The above graphs represents the graphical representation of Tata Growth Fund. Tata growth fund mainly concentrating on Energy sectors. The following will show the top ten holding of tata growth fund in the above mentioned sectors. 

Table no: 4.19.1

Securities	Percentage of Holding
Oracle Financial service	4.2
Lupin  Ltd	3.69
Exide	3.58
Shiv vani Oil and Gas	3.47
Sun TV Network	3.37
Cromption Grave	3.27
Sterlite Tech	3.25
Nava Bharathi Ventures	3.15
Bank Of Baroda	3.09
Unicem Lab	2.99

4.3.4 Reliance Growth Fund

Mutual Fund               :  Reliance Mutual Fund.

Scheme Name             :  Reliance Growth Fund

Scheme Type               :  Open ended

Scheme Category        : Growth

Launch date                :  25: Sep : 1995

Objectives of the fund : The primary investment objective is to achieve long term growth of capital by investing in equity and equity related  securities through a research based investment approach 

Minimum Subscription : 5000

Table no: 4.20

Sectors	RS in Crore
Financial Sector	9.41
Health care Sector	6.81
Energy Sector	6.32
Chemical Sector	5.86
Technology Sector	5.74
Diversified Sector	5.16
Metals Sector	4.75
FMCG Sector	4.41
Communication Sector	4.41
Engineering Sector	2.51
Automobile Sector	2.06
Service Sector	1.85

Chart no: 4.19

The graph represents the various sectors in which company has invested in the terms of crores. The above graphs represents the graphical representation of Reliance Growth Fund. The graph shows that reliance growth fund mainly concentrating on Financial Sectors.  The following table will show the top ten holding and percentage of holding of this Reliance Growth fund.

Table no: 4.20.1

Securities	Percentage of Holding
Lupin Ltd	4.69
Jindal Saw	3.81
Bank Of Baroda	3.51
SBI	3.39
ICICI Bank	2.87
Reliance Industries	2.66
Jindal Power	2.57
Infosys Technologies	2.38
Divi AposLab	2.31
EID Parry	2.2

4.3.5 Franklin Temptation India Prima Plus

Mutual Fund               :  Franklin Temptation Mutual Fund.

Scheme Name             :  Franklin Temptation India Prima Plus.

Scheme Type               :  Open ended

Scheme Category        : Growth

Launch date                :  29: Sep : 1994

Objectives of the fund : Objective of the scheme is to provide investors with maximum growth opportunity.

Minimum Subscription : 2000

Table no:4.21

Sectors	RS in Crore
Financial Sector	18.03
FMCG Sector	15.61
Energy Sector	11.52
Service Sector	10.86
Communication Sector	10.02
Engineering  Sector	7.18
Technology Sector	4.24
Health Care Sector	3.79
Automobile  Sector	3.05
Metals  Sector	2.79
Construction Sector	1.85
Chemicals  Sector	1.04
Cons Durable Sector	0.96

Chart no: 4.20

The above graph represents the various sectors in which the company has invested in the terms of crores. The above graphs represents the graphical representation of Tata Growth Fund. Franklin India prima plus concentrating on financial sector. The following table will show the top ten holding and percentage of holding of this Reliance Growth fund.

Table no: 4.21.1

Securities	Percentage of Holding
Bharti Airte	6.28
HDFC Bank	4.8
Cairna India	4.54
ICICI Bank	4.4
Infosys Technologies	3.48
Hero Honda Motors	2.8
Kotak Mahindra Bank	2.65
Great Esteem	2.51
IBN Broadcast Ltd	2.49
Idea Cellular Ltd	2.39

4.4 Risk Analysis (Phase IV)

            In this phase five mutual fund companies are taken into consideration and comparing by using statistical measures. The following mathematical calculation are taken for the comparison of this phase.

·         SHARPE RATIO

·         BETA

·         ALPHA

·         R-SQUARE

·         STANDARD DEVIATION

·         PB RATIO

·         PE RATIO

For mathematical calculation of different mutual fund following samples are selected for comparison. Here samples are taken form different AMC and the nature of these funds are identical.

Table no: 4.22

AMC	Scheme Name	Category	Type
Birla Sunlife Mutual Fund	Birla Equity Plan	Growth	Open Ended
SBI Magnum MF	SBI Magnum Global	Growth	Open Ended
Tata Mutual Fund	Tata Growth Plan	Growth	Open Ended
Reliance Mutual Fund	Reliance Growth Fund	Growth	Open Ended
Franklin Temptation MF	Franklin India Prima Plus	Growth	Open Ended

4.4.1 SHARPE RATIO

While  an  investor  seeks  to  generate  high  returns  the  question  arises, how  high? Though  the  sky  ca n  be  the  limit,  usually  one  asks for  re turns, which  a re  higher  than  those,  which  we  are  normally  accustomed  to.  These are returns  from  risk-less  instruments  like  treasury  bills,  government securities or bank savings deposits. So the aim of investing seems to be  to generate returns in excess of the risk free return. At  the  same  times  high  returns  are  gene rally  associate d  with  a  high degree   of  volatility.  The  Investors  accept  this  volatility  only  because  they want  higher  returns.  The  Sharpe  ratio  re presents this tradeoff  between risk and  ret urns.  At  the  same  time  it  also  factors  in  the  desire  to  generate returns, which are  higher than those from risk free returns. Mathematically Sharpe ratio can describe through the below formula.

                                   

                                               

                                   

Where,

Rp = Expected return on stock.

Rf = Return on a risk less asset.

βp= Expected change in the rate of return on stock “p” associated with one percent change in the market return.

Table no: 4.22.1

Fund Name	Alpha
Birla Sunlife Equity Fund	-0.13
Franklin India Pirma Plus	-0.18
SBI Equity Fund	-0.2
Tata Growth Fund	-0.21
Reliance Growth Fund	-0.14

Chart no: 4.21

A higher Sharpe ratio is therefore better as it  represents a higher re turn generated  per  unit  of  risk.  However,  while  looking  at  Sharpe  ratio  a  few points have to be  kept  in  mind  to  obtain an accurate  reading  of  the  fund's performance.

·         Firstly, being  a  ratio,  the  Sharpe  measure  is a  pure  number.  In isolation it has no meaning. It can only be used as a comparative tool. Thus the Sharpe  ratio should be  used to compare the performance of a number of funds.

·         Alternatively  one   can  compare   the  Sharpe  ratio  of  a  fund  with that  of  its  benchmark  index.  If the  only  information  available   is  that  the Sharpe  ratio  of  a  fund  is  1.2,  no  meaningful  inference  can  be   drawn  as nothing is known about the  peer group performance.

·         The Sharpe ratio uses standard deviation as its risk component, a low standard deviation can unduly influence results. Thus a fund with low returns but with a relatively mild standard deviation can end up with a high Sharpe ratio. Such a fund will have a very tranquil portfolio and not  generate high returns.

·         For  an  investor who  puts in all  his/he r  money  in  a single fund, Sharpe  ratio  is  a  useful  measure  of  risk-adjusted  return.  This is  because standard  deviation  measures of  total  risk  with single portfolio.

4.4.2  BETA

A measure of the volatility, or systematic risk, of a security or a portfolio in  comparison  to  the  market  as  a  whole .  The value of  beta  of  1  indicates  that  the security's price  will move with the market . A beta value  less than 1 means that the  security  will  be  less  volatile than the  market. A beta  of  greater than  1 indicates that the  security's price  will  be more volatile than the  market. For example, if a stock's beta is 1.2, it's theoretically 20% more volatile than the market.

Calculating BET A

BETA  is  ascertained  mathematically  by  finding  the  covariance  of  the re turns  of  the  scrip  to  those  of  the  market  and  then  dividing  it   by  the variance of the  market  re turn. As a market professional one  is aware  of his / her  investment  objectives and how  much risk  he/she  can  assume  and  can best  decide  whether  to use  weekly,  monthly  or daily  pricing  information in BETA calculation. For this study, Historical data for  benchmark  indices-BSE  200,  NIFTY, CNX  500,  SENSEX  and  NAV  performance  of  each  of  the  funds  have  been collected.

           

           

Table. 4.22.2

Fund Name	BETA
Birla Sunlife Equity Fund	0.89
Franklin India Pirma Plus	0.84
SBI Equity Fund	0.82
Tata Growth Fund	0.82
Reliance Growth Fund	0.78

Chart no: 4.22

            The above mentioned graph shows that all the selected mutual funds are below BETA 1 it means these funds are shows less risk rate and less return rate. Higher BETA shows higher rate of return and higher risk. Here Birla sunlife equity fund is having the highest BETA that is below 1. It shows that the performance of all funds is lesser than the performance of  overall market. Reliance growth fund shows less BETA . It provide high safety and less amount of return

4.4.3 ALPHA

The  basic  idea  is  that  to  analyze  the  performance  of  an  investment manager you must look not only  at  the overall return of a portfolio, but also at the risk of that portfolio. For example, if there are two mutual funds that both  have  a  12%  re turn,  a  rational investor  will  want  the fund  that  is less risky. Jensen's measure is one of t he ways to help determine if a portfolio is earning the proper return for its level of risk.  If the value is positive, then the portfolio is earning excess returns.  In other words, a positive value for Jensen's alpha means a fund manager has "beat the market" wit h his or he r stock picking skills. Jenson’s alpha means can be plotter by bellow formula.

α = R_p - R_f  - β_p (R_m - R_f)

Where :

R_p = Expected total portfolio return

R_f  = Risk free rate

β_p  = Beta of the portfolio

R_m = Expected market return.

Table no:4.22.3

Fund Name	ALPHA
Birla Sunlife Equity Fund	-3.86
Franklin India Pirma Plus	1.56
SBI Equity Fund	-3.5
Tata Growth Fund	-2.46
Reliance Growth Fund	-3.31

Chart no: 4.23

            The graph represents that franlin india pima plus fund is taking higher risk and earning higher returns followed by Tata, Reliance SBI and Birla AMC’s. Birla shows low risk and low return for the period of previous financial year.

1.                CONCLUSION

                 Mutual fund have a major role in India and lot of people preferring to select mutual fund as their investment opportunities. In India lot of banking and insurance companies are also providing mutual funds to public. I find that mutual fund is a great player in the money market. So i am hereby starting a project titled “a study on overall performance analyse of mutual fund for aditya birla mony ltd ” which will analyse the major  players in mutual fund industry by Aditya birla taken as base. Here I am concluding this study by recommending investors to invest in mutual fund because it s a good investment opportunity based on my limited study.