nidhi mittal report

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Summer training report

On

HDFC BANK

mutual funds and their comparative analysis

Submitted in partial fulfillment of the requirements of business

management program.

NATIONAL INSTITUTE OF TECHNOLOGY(kurukshetra)

SUBMITTED BY:

NIDHI MITTAL

MBA-IIsem

3023

DEPARTMENT OF BUSINESS ADMINISTRATION

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ACKNOWLEDGEMENT

No work is considered complete unless due acknowledgement is given to those who

made it possible. Therefore, I am very thankful to the entire team of HDFC BANK for

their cooperation, without which completion of this project would not have been possible.

Words at my command are inadequate both in form and spirit to express my sincere and

profound gratitude to Mr. Naveen Relan (branch manager) of HDFC ltd.. for having

confidence in my abilities and giving me all the liberties to perform. Sirs meticulous

guidance, keen supervision and whole hearted help has made me capable to complete this

project. I would also like to thankMr. Hitesh Mehta and Mr.Dinesh (Advisor- Mutual

Funds) for sharing with me all the details of the project and providing me with valuable

insights about the product. I would also like to thank Ms. Meenu (Advisor credit cards),

Mr.Deepak bajaj(personal banker) for the patience shown by them and being of such a

great help to all my queries and above all making the environment more comfortable for

me.

Last but not the least I would like to thank my co-trainees Ms sheetal and

Ms rachna.they have been a great support in preparing this report as well as in

discussing about the related data and creating a cosy environment for my research work.

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MUTUAL FUNDS AND THEIR COMPARATIVE ANALYSIS

This report gives one an insight into the mutual funds in India. I have tried my level bestto incorporate the readings and the information I collected through these readings duringmy Summer Internship in HDFC BANK.

This report basically consists of all information regarding work which I had done in thisproject .So going ahead I would like to tell you in general actually what my project is?

The Project Title i.e. MUTUAL FUNDS AND THEIR COMPARATIVEANALYSIS.

So under, First topic ofMutual Funds I had collected data from various resources andreference like facts sheets of various funds houses and secondary data from differentwebsites and with total support of the bank staff and branch managerMr.Naveen relan

From these facts sheets of various companies I had analyzed the past track record ofvarious funds of selected Fund houses..By this analysis I had seen the performance ofdifferent funds of different fund houses. So that it I can make this project helpful for theinvestor in selection of the right fund and guided the investor for his or her investment

This project would help the investor in selecting best of best fund for making investment.This project basically concentrates on the study of Mutual Funds, which are currentlyattracting investors from all walks of life. This project also enhances my knowledgeabout the subject. and enable me to understand the terms more easily by knowing the

funds behind the name and its implications This project aims at understanding theviability of best of best in different sections of mutual funds and banking scrips forfuture investment.

SUPERVISION:Mr. Naveen Relan(Branch manager)HDFC BANK

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INTRODUCTION

In todays world where people are more concerned about protecting their future, theyneed to plan out their investments in a judicious manner. Investment goals vary fromperson to person. While somebody wants security, others might give more weight age toreturns alone. Somebody else might want to plan for his childs education whilesomebody might be saving for life after retirement.

With different objectives their main aim is that they want their money to grow in a safeand secure manner. but there is a phrase which states that Higher the Risk Higher isthe Return everyone is not that strong that he could risk his earning but they do want toearn at minimum possible risk

This project would help the investor in selecting the Best fund for making investment.This project basically concentrates on the study of Mutual Funds and selected BankingScrips as investment avenues, which are currently attracting investors from all walks oflife. This project also enhance my knowledge about the subject. and enable me tounderstand the terms more easily by knowing the funds behind the name and itsimplications This project aims at understanding the viability of best of best in differentsections of mutual funds and banking scrips for future investment

This project would guide them as to how they can plan out there investment by providinginvestors with the research facts In this project a study for comparative analysis of

various schemes offered by different Mutual fund companiesLastly Enough work has not been done on this subject hence I have chosen this projectfor further research to guide .This Analysis can help in relating the risk profile of aninvestor with the investment avenue that he is opting

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ESSENTIAL OF THIS RESEARCH

Managed assets to rise 6-fold by 2015

The total assets managed by all funds in the country--mutual funds, international funds, private banking, including portfolio management services, unit-linked insurance andpension funds--is likely to grow more than six-fold to US$ 1,300 billion by 2015, fromUS$ 170 billion, says the Boston Consulting Group. The potential of the Indian market isattracting many new entrants and this is likely to continue over the next five years. Theopportunity for various fund categories to invest in India will grow exponentially;managed assets, excluding pension, are expected to grow at least 10 times over next 10years Trends

India--with its GDP approaching

US$ 800 billion--is viewed as one of the biggest growth stories among emerging marketsexplains only part of the attraction for foreign banks. Credit off-take has grown 25-30 percent annually in recent years, with retail consumer lending being the hunting ground forforeign banks. State Bank of India (SBI), the country's largest bank, has earmarkedbiotechnology, fisheries, food technology, dairy and horticulture as thrust areas. Its three-year national plan, FY07-10, involves an outlay of US$ 2.66 billion. ICICI Bank says its20 million customer base is growing by 35 per cent annually. The bank operates 2,680

automated teller machines, and its network of 670 branches is expanding by 50-100 everyyear. A growth machine in the past five years, the group held US$ 62 billion in assets forthe year ended on March 31, 2006.

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SCOPE OF THE PROJECT

This project is not only for those people who are planning to invest there money indifferent Mutual Funds or Banking Scrips but also for them who had invested theremoney in either of the schemes which are being compared in the project . so that theycould also use this report for there investments so as to yield maximum benefit out of thisproject As hdfc deals in various financial instruments where in which investors investthere money so by my research I could tell investors which Banking stock to buy or tosell with strong fundamental research .

The prime objective of the project would be to identify and suggest people with properresearch facts for investment in mutual fund and banking scripts prior to there investmentso as to why they go for our recommendations

OBJECTIVES OF THE PROJECT

1. To Appraise leading Mutual Fund companies

2. To Analyze returns generated by leading fund houses

3. To Study Scripts on Various parameters of Research

4. To Guide investors about there investments among these scrips

5. To give recommendations on the best Fund / Scrip

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LIMITATIONS

A large number of schemes around 590 are available in the market and it is

difficult to analyze all of them.

The analysis is completely based on the past performance and does not confirms

the future performance.

Lack of enthusiasm among investors due to fluctuations in market

Difficulties in gathering desired information

No Co-ordination between study and project

Study is not very exhaustive and many concepts cannot be studied due to time and

other constraints.

Officials though very helpful, are not able to give much of their time due to their

own time constraint.

The results from the analysis is qualitative and not the quantitative.

Limitations of stock market.

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METHODOLOGY

It is an Empirical study in which mostly secondary data will be used . The Primary data

in this case is not required as such because investments are made according to the pasttrends and market value of an mutual fund or a scrip primary dataThe Secondary data has been collected from the followings

Fact Sheets of all the AMCs

Mutual Fund Insight

Indian Mutual Funds Handbook

Newspapers ( Economic Times , Business Line)

Magazines ( Business World)

Internet Web Sites

In this the Sample Size For Mutual Funds companies is 6 this size is selected out of 10companies which are currently offering their products in the market these 6 companiesare selected according to there market capitalization of the companies

In the project of Banking Scrip the Sample Size is 6 out of 10. the companies which hasbeen selected for analysis has large market capitalization and highest performing mutualfund categories.

Analysis would be on those companies and banks which have large market capitalizationand other parameters like performance, stability, etc.

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ANALYTICAL STUDY OF MUTUAL FUNDS

Introduction

Different investment avenues are available to investors. Mutual funds also offer goodinvestment opportunities to the investors. Like all investment, they also carry certainrisks. The investors should compare the risks and expected yield after adjustment of taxon various instruments while taking investment decisions. The investors may seek advicefrom experts and consultants including agents and distributors of mutual funds schemeswhile making investment decisions.With an objective to make the investors aware of functioning of mutual funds, an attempthas been made to provide information in question-answer format which may help theinvestors in taking investment decisions.

During the last few decades the global scenario has witnessed several significantdevelopments, including initiation of new and innovative financial services. Thephenomenal growth of the capital market has been accompanied by the advent of equitycult among the household sector. The household sector does not possess the surplusfunds, but psychologically it is either risk-neutral or risk-averse. Therefore,institutional shields have been created, whose main role is to act as intermediariesbetween the people, who have the ability and propensity to save, and those who requiremoney. This is a historical necessity, which has given rise to the concept of MutualFunds.

An investor normally prioritizes his investment needs before undertaking an investment.So different goals will be allocated different proportions of the total disposable amount.Investments for specific goals normally find their way into the debt market as riskreduction is of prime importance. This is the area for the risk-averse investors and here,mutual funds are generally the best option. Capital markets interest people, albeit not allfor there are several problems associated. First issue is that of expertise. While investingdirectly into capital market one has to be analytical enough to judge the valuation of thestock and understand the complex undertones of the stock. One needs to judge the rightvaluation for exiting the stock too.It is very difficult for a small investor to keep track of the movements of the market.Entrusting the job to experts, who watch the trends of the market and analyze the

valuations of the stocks will solve this problem for an investor. Mutual funds specializein identification of stocks through dedicated experts in the field and this enables them topick stocks at the right moment.

Next problem is that of funds/money. A single person cant invest in multiple high-pricedstocks for the sole reason that his pockets are not likely to be deep enough. This limitshim from diversifying his portfolio as well as benefiting from multiple investments. Hereagain, investing through MF route enables an investor to invest in many good stocks andreap benefits even through a small investment. This not only diversifies the portfolio andhelps in generating returns from a number of sectors but reduces the risk as well. Though

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identification of the right fund might not be an easy task, availability of good investmentconsultants and counselors will help investors take informed decision.

Why Mutual Fund ?

A Mutual Fund is an institutional arrangement which mobilizes savings of millions of

investors for investment in a diversified portfolio of securities, with a view to spread riskand to ensure adequate and consistent return, both in the form of dividend and capitalappreciation. It is, in fact, a financial intermediary that receives money fromshareholders, invest it, earn on it, and make it grow to share it with them. Theseinstitutions are managed by professional money managers who make portfolio investmentdecision on behalf of unsophisticated investors.

Mutual fund is a mechanism for pooling the resources by issuing units to the investorsand investing funds in securities in accordance with objectives as disclosed in offerdocument.

Investments in securities are spread across a wide cross-section of industries and sectorsand thus the risk is reduced. Diversification reduces the risk because all stocks may notmove in the same direction in the same proportion at the same time. Mutual funds issuesunits to the investors in accordance with quantum of money invested by them. Investorsof Mutual funds are known as Unit Holders.

The profits and losses are shared by the investors in proportion to their investments.Mutual funds normally comes out with a number of schemes with different investmentsobjectives which are launched from time to time. A mutual fund is required to beregistered with Securities and Exchange Board of India which regulates securitiesmarkets before it can collect funds from public.

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RISK RETURN GRID (types of funds)

RiskTolerance/Return

Expected

Focus Suitable Products Benefits offered by MFs

Low DebtBank/ Company FD,

Debt based FundsLiquidity, Better Post-Tax returns

Medium

PartiallyDebt,

PartiallyEquity

Balanced Funds, Some

Diversified EquityFunds and some debt

Funds, Mix of sharesand Fixed Deposits

Liquidity, Better Post-Tax returns,

Better Management, Diversification

High Equity

Capital Market, Equity

Funds (Diversified aswell as Sector)

Diversification, Expertise in stock

picking, Liquidity, Tax freedividends

Their appeal is not just limited to these categories of investors. Specific goals like career

planning for children and retirement plans are also catered to by mutual funds. Children

funds have found their way in a big way with many of the fund houses already having

launched a children fund. Essentially debt oriented, these schemes invite investments,

which are locked till the child attains majority and requires money for higher education.

You can invest today and assure financial support to your child when he/she requires

them. The schemes have given very good returns of around 14 percent in the last one-

year period. These schemes are also designed to provide tax efficiency. The returns

generated by these funds come under capital gains and attract tax at concessional rates.

Besides this, if the objective was to save taxes, the industry offers equity linked

savings schemes as well. Equity-based funds, they can take long-term call on stocks and

market conditions without having to worry about redemption pressure as the money is

locked in for three years and provide good returns. Some of the ELSS have been

exceptional performers in past and cater to equity investor with good performances. The

industry offered tax benefits under various sections of the IT Act. For e.g. dividend

income is free in the hands of the investor while capital gains are taxed after providing

for cost inflation indexation. Hitherto, the benefits under section 54 EA/EB were

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available to take benefits of the tax provisions for capital gains but have now been

removed.

The benefits listed so far have essentially been for the small retail investor

but the industry can attract investments from institutional and big investors as well.

Liquid funds offer liquidity as well as better returns than banks and so attract investors.

Many funds provide anytime withdrawal enabling a big investor to take maximum

benefits.

The appeal of mutual funds cuts across investor classes. In other developed countries,

mutual funds attract much more investments as compared to the banking sector but in

India the case is reverse. We lack awareness about the benefits that are offered by these

schemes. It is time that investors irrespective of their risk capacities, made intelligent

decisions to generate better returns and mutual funds are definitely one of the ways to go

about it.

HISTORY OF INDIAN MUTUAL FUND INDUSTRY

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:-

First Phase 1964-87

An Act of Parliament established Unit Trust of India

(UTI) on 1963. 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 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.

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

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Corporation of India (LIC) and General Insurance Corporation of India (GIC).

SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987

followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund

(Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of

Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while

GIC had set up its mutual fund in December 1990.At the end of 1993, the mutual

fund industry had assets under management of Rs.47,004 crores.

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

With

the entry of private sector funds in 1993, a new era started in the Indian mutual

fund industry, giving the Indian investors a wider choice of fund families. Also,

1993 was the year in which the first Mutual Fund Regulations came into being,

under which all mutual funds, except UTI were to be registered and governed.

The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the

first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by

a more comprehensive and revised Mutual Fund Regulations in 1996. The

industry now functions under the SEBI (Mutual Fund) Regulations 1996. The

number of mutual fund houses went on increasing, with many foreign mutual

funds setting up funds in India and also the industry has witnessed several

mergers and acquisitions.

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

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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.

GROWTH IN ASSETS UNDER MANAGEMENT

SOURCE : AMFI

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SOURCE : AMFI

Role of Securities & Exchange Board of India

To protect interest of investors in securities and to promote the development of securitiesmarket.As far as mutual funds are concerned, SEBI formulates the policy and regulates mutualfunds to protect interest of investors. SEBI notified regulations for mutual funds

in1993.Thereafter,mutual funds sponsored by private sector entities were allowed to entercapital market. The regulations were revised in 1996 ,and have been amended thereafterfrom time to time.

All mutual funds whether promoted by public sector or private sector entities aregoverned by same set of regulations. There is no distinction in regulatory requirement forthese monthly requirements and all are subject to monitoring by SEBI. The risksassociated with the schemes launched by mutual funds sponsored by these entities are ofsimilar type.

Setting up of Mutual Fund

A mutual fund is set up in form of a trust, which has sponsors, trustees, assetmanagement companies and custodian. The trust is established by a sponsor who is like apromoter of a company. The trustees of mutual fund hold its property for benefit of unitholders. AMC approved by SEBI manages the funds by making investments in varioustypes of securities. Custodian, who is registered with SEBI, holds the securities of variousschemes of the funds in the custody. The trustees are vested with the general power ofsuperintendence and direction over AMC. They monitor the performance and complianceof the SEBI regulations by the mutual funds.

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SEBI regulations require that at least two third of the directors of trustee company orboard of trustee must be independent i.e. they should be associated with the sponsors.Also, 50% of the directors of AMC must be independent. All mutual funds are requiredto be registered with SEBI before they launch any scheme. However, Unit trust ofIndia(UTI) is not registered with SEBI (as on January 15, 2002).

Net Asset Value (NAV) of A Scheme

The performance of a particular scheme of a mutual fund is denoted by Net Asset Value(NAV). Mutual funds invest the money collected from the investors in securities markets.In simple words, Net Asset Value is the market value of the securities held by thescheme. Since market value of securities changes every day, NAV of a scheme alsovaries on day to day basis. The NAV per unit is the market value of the securities of ascheme divided by the total number of the unit of the scheme on any particular date. Forexample, if the market value of securities of a mutual fund scheme is Rs. 200 lakhs andthe mutual funds has issued 10 lakhs units of Rs.10 each to the investors, then the NAVper unit fund is Rs. 20. NAV is required to be disclosed by the mutual funds on a regularbasis- daily or weekly- depending on the type of the scheme.

Graphical Representation

SOURCE : AMFI

Mutual Fund Operation Flow Chart16


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SOURCE : AMFI

STRUCTURE OF A MUTUAL FUND

SOURCE : AMFI

Why should you invest in Mutual Funds?

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1) Reduce your risks-Mutual Funds diversify your portfolio by investing in various

securities & minimise the risk.

2) Maximise your opportunities - The fund managers with the strong research

take explore new investment options make available opportunities for your investments

to flourish.

3) Liquidity: (Quick access to your money) -Mutual Funds can be bought and

sold on any dealing day

4) Affordability -Of course you dont need to be millionaire to invest in mutual fund

as the minimum investment in mutual fund starts from Rs.500/-. A Mutual Fund because

of its large corpus allows even a small investor to take the benefit of its investment

strategy.

5) 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.

6) Tax Benefits -The tax benefits that Mutual Funds investors enjoy at the moment is

the treatment of long-term capital gains.

Investors have two options as regards long-term capital gains:

Tax @ 10% on capital gains without indexation (plus surcharge)

Tax @ 20% on capital gains after indexation (plus surcharge)

7) Transparency - The investor gets regular information on the value of his

investment in addition to disclosure on the specific investments made by the fund, the

proportion invested in each class of assets and the fund manager's investment strategy

and outlook.

8) Regulated for investor protection -All Mutual Funds in India are registeredwith the regulator of the Indian securities industry - the Securities and Exchange Board of

India (SEBI). The funds function within the framework of regulations designed by SEBI

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and these regulations are intended to protect the interests of investors. The operations of

the mutual funds are also regularly monitored by SEBI.

9)Professional Management you avail the services of experienced and skilled

who are backed by a dedicated investment research team which analysis the performance

and prospects of companies and accordingly selects suitable investment archive

Risk Profiles

Equity Diversified Funds

Diversification - Mutual Funds reduces the risk by investing in all the sectors. Instead of

putting all your money in one sector or company it's better to invest in various good

performing sectors as you reduces the risk of getting involved in a particular

sector/company which may perform or may not.

Who should invest - This is an ideal category for those who want to participate in stock

market & knows the risk involved in stock market but have few rupees to invest in

bluechip stocks.

How they performed - Though the short term out look is volatile in long-term equity

diversified funds have outperformed other categories & stock markets will lesser amount

of risk than stock markets. The average returns of equity diversified funds are 102%.

Index Funds -

Follow the index - These are the index-based funds, which move with the likes of Sensex

& Nifty. These fund charges NIL or very low entry/exit loads.

Who should invest - if Nifty & Sensex have come down from their tops, it is a good time

to invest in Index funds with the principal of "Investing at the lower levels".

How they performed - Though the short term out look is volatile in long-term Sensex &

Nifty could do well with improving economic conditions. It has been seen that these

Index funds have outperformed the indices making them more attractive.

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Sector Fund -

Sector - Sector Schemes follow particular sector.

Who should invest - You have to be selective while investing in these funds, as you need

to select particular sector, which will perform better in the future. Investing in these funds

carries some amount of risk but also give you more returns.

How they performed - Sector funds have given average returns of 73% for 1 year

period. Auto, Steel, Cement have done well the year '03 & the trend will continue in year

'04 but IT, FMCG sectors are experiencing downward trend due to $ depreciation, price

war in FMCG respectively. Though short-term trend for pharma sector looks down in

long term we look forward to lot more action in the sector, as there exists a long-term,

strong fundamental story backed by immense growth potential for the Indian

pharmaceutical companies.

Balanced Funds -

Balanced Act - Balanced funds gives you the stability with the potential to grow with the

equity help of equity investments. These funds invest in both Equity & Debt markets.Who should invest - The balanced funds are for those, who want to enjoy the

appreciation effects of equity market but at the same time like to play safe with less

volatile debt market. In this volatile market it is good to invest in balanced funds as they

carries less risk compare to equity funds.

How they performed - In the last 12 months balanced funds have given descent returns

with the up trend in the equity markets. Balanced funds average returns are 60% for 1-

year period.

Equity Linked Tax Savings Schemes (ELSS) -

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Who should invest - Those who seek monthly income. In the current scenario where

debt market is very volatile it's better to invest in hybrid funds like MIP with suitable

time horizon for capital appreciation.

How they performed - In Last 6-12 months MIP's have given descent returns compare

to debt funds. The average returns of MIP's stands at 15.68%, which looks good,

compared to income funds.

STP

Short-term Plans - These schemes provides short-term saving option with more liquidity

than FD's to park your investments.

Who should invest - Those who seeking for income in short-term investments of 6-10

months with more liquidity than Bank fixed deposit.

How they performed - While savings accounts would give you 3.5% per anum, bank

FD's annually return up to 6.5%, Liquid funds would typically give you more than 5%

and short-term plans 6 to 6.5% per anum. In Last 6-12 months STP's have given descent

returns.

Various Types of Mutual Fund Schemes

Schemes according to Maturity Period :-

A mutual fund scheme can be classified into open-ended scheme orclose-ended scheme

depending on its maturity period.

Open-Ended Fund Or Scheme :-

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An open-ended scheme or fund is one that is available for subscription or repurchase on a

continuous basis. These schemes do not have a fix maturity period. Investors can

conveniently buy and sell units at net asset value related price which are declared on a

daily basis. The key feature on an open-ended scheme is liquidity.

Close-Ended Fund Or Scheme :-

A close-ended scheme of fund has a stipulated maturity period e.g. 5-7 years. The

fund is open for subscription only during a specified period at the time of launch of the

scheme. Investors can invest in the scheme at the time of the initial public issue and

thereafter they can buy and sell the units of the schemes on the stock exchanges where

the units are listed. In order to provide the exit route to the investors, Some close-ended

funds give an option of selling back the units to the mutual fund through periodic

repurchase at NAV related prices. SEBI regulations stipulate that at least one of the two

exit routes is provided to the investors i.e. either repurchase facility or through listing on

the stock exchanges. These mutual funds schemes disclose NAV generally on weekly

basis.

Schemes According To Investment Objective :-

Considering its investment objective, a scheme can also be classified as :-

Growth Scheme

Income Scheme

Balanced Scheme

Such schemes can be Open-ended or be Close-ended as described earlier. These schemes

may be classified mainly as follows -:

Growth Or Equity Oriented Scheme :-

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The aim of the Growth fund is to provide capital appreciation over the medium to long

term. Such schemes normally invest a major part of their corpus in equities. Such funds

have comparatively high risks. These schemes provide different options to the investors

like dividend option, capital appreciation etc. and the investors may choose an option

depending on their preferences. The investor must indicate the option in the application

form. Mutual funds also allow the investors to change the options at the later date.

Growth schemes are good for investors having a long-term outlook seeking appreciation

over a period of time.

Income Or Debt Oriented Scheme

The aim of income funds is to provide regular and steady income to investors. Such

schemes generally invest in fixed income securities such as Bonds, CorporateDebentures, Government Securities and Money Market Instruments. Such funds are

less risky compared to equity schemes. These funds are not affected because of

fluctuations in equity markets. However opportunities of the capital appreciation are also

limited in such funds.

The NAV of such funds are affected because of change in interest rates in country. If the

interest rate falls, NAVs of such funds are likely to increase in the short run or vice-versa.

However, Long-term investors may not bother about these fluctuations.

Balanced Fund

The Aim of the Balanced fund is to provide both regular income as such schemes invest

both in equities and fixed income securities in the proportion indicated in their offer

documents. These are appropriate for investors looking for moderate growth. They

generally invest 40-60% in equity and debt instruments. These funds are also affected of

fluctuation in share prices in the stock markets. However, NAVs of such funds are likely

to be less volatile compared to pure equity funds.

Money market Or Liquidity Funds

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These funds are also income funds and their aim is to provide easy liquidity, preservation

of the capital and moderate income. These schemes invest exclusively in safer short-term

instruments such as Treasury Bills, Certificate of Deposit, Commercial Paper and

Inter Bank Call money, Government Securities etc. Return on these schemes

fluctuates much less compared to other funds. These funds are appropriate for corporate

and individual investors as a means of park their surplus funds for short periods.

Gilt Fund

These funds invest exclusively in government securities. Government securities have no

default risk. NAVs of these schemes also fluctuate due to change in interest rates and

economic factors as is the case with income or debt oriented schemes.

Index Funds

Index Funds replicate the portfolio of a particular index such as the BSE sensitive index,

S&P NSE 50 index(Nifty), etc. These schemes invest in the securities in the same weight

age comprising of an index. NAVs of such schemes would rise or fall in accordance with

the rise or fall in the index, though not exactly by the same percentage due to some

factors known as Tracking Error in technical terms. Necessary disclosure in this

regard are made in the offer document of the mutual fund scheme. There are also

exchange traded index funds launched by the mutual funds which are traded on the stock

exchanges.

Sector Specific Fund or Schemes

These are the funds or schemes which invest in the securities of only those sectors or

industries as specified in the offer documents. E.g. Pharmaceuticals, software, Fast

Moving Consumers goods(FMCG), petroleum stocks, etc. the return on these funds are

dependent on the performance of the respective sector/industries. While these funds may

give higher returns, they are more risky compared to the diversified funds. Investors need

to keep a watch on the performance of these sectors/industries and must exit at an

appropriate time. They may seek an advice of an expert.

Tax Saving Schemes

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These schemes offer tax rebate to the investors under the specific provisions of the

Income tax act, 1961 as the government offers tax incentives for investment in the

specific avenues. E.g. Equity Linked Saving Schemes (ELSS). Pension schemes

launched by the mutual funds also offer tax benefits. These schemes are growth oriented

and invest pre-dominantly in equities. Their growth opportunities and risk associated are

like any equity-oriented scheme.

Load And No-Load Fund

A load fund is that charges a percentage of NAV for entry or exit. That is, each time one

buys or sells units in the fund, a charge will be payable. This charge is used by the mutual

fund for marketing and distribution expenses. Suppose the NAV per unit is Rs.10.if the

entry or exit load charged is 1% then the investors who buy would be required to pay

Rs.10.10 and those who offer their units for repurchase to the mutual fund will get only

Rs.9.90 per unit. The investors should take the loads into consideration while making

investment as these affect their yield/returns. However, the investor should also consider

the performance track record and service standards of mutual funds which are more

important. Efficient funds may give higher returns in spite of loads.

A Non-Load fund is one that does not charge for entry or exit. It means that the investors

can enter the fund/scheme at NAV and no additional charges are payable on the purchase

or sale of the units.

Amendment in Mutual Fund to impose fresh load or increase the load beyond the

level mentioned in the Offer Documents

Mutual funds cant increase the load beyond the level mentioned in the offer document.

Any change in the load will be applicable only to prospective investments and not to the

original investments. In case of imposition of fresh loads or increasing in the exiting

loads, the mutual funds are requires to amend their offer documents so that the new

investors are aware of the loads at the time of investments.

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basis, they are require to inform the unitholders and giving them option to exit the

scheme at prevailing NAV without any load.

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Frequently Used Terms

NetAssetValue(NAV)

Net Asset Value is the market value of the assets of the scheme minus its liabilities.

The per unit NAV is the net asset value of the scheme divided by the number of units

outstanding on the Valuation Date.

SalePrice

Is the price you pay when you invest in a scheme. Also called Offer price.

Repurchase Price

Is the price at which a close-ended scheme repurchases its units and it may include a

back-end load. This is also called Bid Price.

Redemption Price

Is the price at which open-ended schemes repurchase their units and close-ended

schemes redeem their units on maturity. Such prices are NAV related.

Sales Load

Is a charge collected by a scheme when it sells the units. Also called, Front-end

load. Schemes that do not charge a load are called No Load schemes.

Repurchase or Back-end Load

Is a charge collected by a scheme when it buys back the units from the unitholders.

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Procedure to be followed to Invest in a Mutual Fund Scheme

Mutual funds come out with an advertisement in newspapers publishing the launch of the

new schemes. Investors can also contact the agents and distributors of the mutual funds

who are spread all over the country for necessary information and application forms.Forms can be deposited with mutual funds through the agents and distributors who

provide such services. Now a days, the post offices and banks also distribute the units of

the mutual funds. However, the investor should note that the mutual funds being

marketed by banks and post offices should not be taken as their own schemes and no

assurance of return can be given by them. The only role of the banks is to help in

distribution of mutual funds schemes to the investors.

Investors should not be carried away by commission / gift given by agents / distributors

for investing in a particular scheme. On the other hand they must consider the track

record of mutual fund and should take objective decisions.

Provision for Non Resident Indian to Invest in Mutual Funds

Non Resident Indians can also invest in mutual funds. Necessary details in this respect

are given in the offer documents of the schemes.

Distribution of Portfolio between Debt or Equity oriented schemes

An investor should take into account his risk taking capacity, age factor, financial

position, etc. As already mentioned, the schemes invest in different type of securities as

disclosed in the offer documents and offer different returns and risks. Investors may also

consult financial experts before taking decisions. Agents and distributors may also help in

this regard.

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Prospective of an Investor into an Offer document

An abridged offer document, which contain very useful information, is required to be

given to the prospective investor by the mutual fund. The application fund for

subscription to a scheme is an integral part of the offer document. SEBI has prescribed

minimum disclosures in the offer document. An investor, before investing in a scheme,

should carefully read the offer document. Due care must be given to portions relating to

main features of the scheme, risk factors, initial issue expenses and recurring expenses to

be charged to the scheme, entry or exit loads, sponsors track record, educational

qualification and work experience of key personnel including fund managers,

performance of other schemes launched by the mutual funds in the past, pending

litigations and penalties imposed, etc.

Dispatch of Certificate or Statement of Statement of Account to the Investor, after

Investing in a Mutual Fund

Mutual funds are required to dispatch certificates or statements of accounts within six

weeks from the date of closure of the initial subscription of the scheme. In case of close

ended schemes, the investors would get either a Demat account statement or unit

certificates as they are traded in the stock exchanges. In case of the open-ended schemes,

a statement of account is issued by the mutual fund within 30 days from the date of

closure of initial public offer of the scheme. The procedure of repurchase is mentioned in

the offer document.

Transfer of Units after Purchase from Stock Markets in case of Close Ended

Schemes

According to SEBI regulations, transfer of units is required to be done within thirty days

from the date of lodgment of certificates with the mutual fund.

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Mutual Fund Provides option to Transfer / Invest Periodically / Withdraw

Periodically

Systematic Transfer Plan (STP)

Through STP you can transfer amounts at a weekly ( Every Friday ), monthly or quarterly

frequency from one scheme of ours to another scheme. All you need to do is to give us a

one-time instruction to do so. You may choose to regularly switch either a fixed sum or

just the appreciation part of your investment. In brief it is the combination of SWP and

SIP.

Benefits from STP

If you have investments or plan to invest in any of our debt schemes at the same timewant to have a little exposure in any of our equity funds by investing regularly with out

taking much of a risk. You may opt to take STP form the debt investment into the equity

scheme. Both fixed and appreciation options would work for you it all depends on your

requirements. If you wish to transfer an exact amount regularly then the Fixed Option is

suitable for you. If do not want this transfer to disturb your capital contribution and

would like only to switch the appreciation generated in the investment, you should opt for

the appreciation option.

For investors in our equity schemes STP is an excellent tool for booking the gains and

transferring them to a less volatile debt scheme. Such investors may choose to opt the

appreciation option of STP.

Ideally, STP should be opted from the growth options of our schemes/plans.

Systematic Investment Plan (SIP)

a) It provides you the convenience of investing in our schemes/plans regularly any

day of the month a fixed amount by submitting post dated cheques along with the

Kotak Facility form. In most of the schemes you can even start your investments

though SIP.

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b) At least 5 cheques to be issued and the aggregate of such cheque not to be less

than the the minimum purchase amount for opening Unit Account for the

respective Scheme/Plan.

It is an ideal option for investors having salary incomes. If you have regular and

consistent income flows, SIP becomes an ideal choice to discipline your savings by

committing for them through post-dated cheques.

Advantages of SIP

Although SIP works well for both Debt and Equity funds, the advantage of opting it for

investing in Equity funds is supported by the fact that volatility is inherent in equities. By

investing regularly through SIP in our equity schemes, you would be averaging out on the

NAV fluctuations. Over a period of time you would observe that by investing fixed

amounts you have accumulated more units at lower NAV and lesser units at higher NAV.

We are of the belief that it is difficult to time the stock market consistently, hence the best

option is to invest regularly and average out on the market fluctuations.

Systematic Withdrawal Plan (SWP)

Through SWP you can redeem sums at a monthly or quarterly frequency by giving a one-

time instruction to us. You may choose to regularly withdraw either a fixed sum or just

the appreciation part of your investment. As the capital gain tax would be levied only on

the number of units you withdraw, SWP becomes a tax efficient way of getting regular

income from your investments.

This facility is suitable fortwo types of needs : -

1) Investors wanting regular funds inflow from their investments.

2) Investors interested in booking their gains at a regular interval.

If you require an exact amount regularly then the Fixed Option is suitable for you. If you

do not want this withdrawal to disturb your capital contribution and would like only to

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reap the appreciation generated in the investment, you should opt for the appreciation

option.

Ideally SWP should be opted from the growth options of our schemes.

Advantages of SWP

Apart from offering you a great convenience in managing your funds inflow and profit

booking, you also benefit by saving on the tax liability if a similar inflow would have

come from dividends.

Time Required to Receive Dividends / Repurchase Proceeds

A mutual fund is required to dispatch the dividend warrants within 30 days of the

declaration of the dividend and the redemption or repurchase proceeds within 10 working

days from the date of redemption or repurchase request made by the unit holder.

In case of failures to dispatch the redemption/repurchase proceeds with in the stipulated

time period, asset management company is liable to pay interest as specified by SEBI

from time to time(15% at present).

Net Asset Value (NAV)

The net asset value of the fund is the cumulative market value of the assets fund net of its

liabilities. In other words, if the fund is dissolved or liquidated, by selling off all the

assets in the fund, this is the amount that the shareholders would collectively own. This

gives rise to the concept of net asset value per unit, which is the value, represented by the

ownership of one unit in the fund. It is calculated simply by dividing the net asset value

of the fund by the number of units. However, most people refer loosely to the NAV per

unit as NAV, ignoring the "per unit". We also abide by the same convention.

Calculation of 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.

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Asset value is equal to

Sum of market value of shares/debentures

+ Liquid assets/cash held, if any

+ Dividends/interest accrued

Amount due on unpaid assets

Expenses accrued but not paid

NAV= ASSET-LIABILITIES

NO.OF UNITS

Details on the above items

For liquid shares/debentures, valuation is done on the basis of the last or closing market

price on the principal exchange where the security is traded

For illiquid and unlisted and/or thinly traded shares/debentures, the value has to be

estimated. For shares, this could be the book value per share or an estimated market price

if suitable benchmarks are available. For debentures and bonds, value is estimated on the

basis of yields of comparable liquid securities after adjusting for illiquidity. The value of

fixed interest bearing securities moves in a direction opposite to interest rate changes

Valuation of debentures and bonds is a big problem since most of them are unlisted and

thinly traded. This gives considerable leeway to the AMCs on valuation and some of the

AMCs are believed to take advantage of this and adopt flexible valuation policies

depending on the situation.

Interest is payable on debentures/bonds on a periodic basis say every 6 months. But, with

every passing day, interest is said to be accrued, at the daily interest rate, which is

calculated by dividing the periodic interest payment with the number of days in each

period. Thus, accrued interest on a particular day is equal to the daily interest rate

multiplied by the number of days since the last interest payment date.

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Usually, dividends are proposed at the time of the Annual General meeting and become

due on the record date. There is a gap between the dates on which it becomes due and the

actual payment date. In the intermediate period, it is deemed to be "accrued ".

Parameter for Analysis

Details of the Fund -

a. AMC Profile

b. Return Absolute / Relative

c. Risk & Volatility

a)Analytical Tools applied for measuring Performance

b) Standard Deviation

c) The Treynor Measure

d) The Sharpe Measure

e) Beta

f)Alpha

g) R Squared

d. Load on Entry or Exit

e. NAV

f. Portfolio Turnover

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Global Scenario

Some basic facts-

The money market mutual fund segment has a total corpus of $ 1.48

trillion in the U.S. against a corpus of $ 100 million in India.

Out of the top 10 mutual funds worldwide, eight are bank- sponsored.

Only Fidelity and Capital are non-bank mutual funds in this group.

In the U.S. the total number of schemes is higher than that of the listed

companies while in India we have just 277 schemes

Internationally, mutual funds are allowed to go short. In India fund

managers do not have such leeway.

In the U.S. about 9.7 million households will manage their assets on-

line by the year 2003, such a facility is not yet of avail in India.

On- line trading is a great idea to reduce management expenses from

the current 2 % of total assets to about 0.75 % of the total assets.

72% of the core customer base of mutual funds in the top 50-broking

firms in the U.S. are expected to trade on-line by 2003.

(Source: The Financial Express September, 99)

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Regulatory Aspects

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 made by the scheme in the

listed securities of the group companies of the sponsor A close-ended scheme

shall be fully redeemed at the end of the maturity period. "Unless a majority of

the unit holders otherwise decide for its rollover by passing a resolution".

Restrictions On Investments:

A mutual fund scheme shall not invest more than 15% of its NAV in debt

instruments 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 the

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 instruments

shall not exceed 25% of the NAV of the scheme. All such investments shall bemade with the prior approval of the Board of Trustees and the Board of asset

management company.

No mutual fund under all its schemes should own more than ten per cent of any

company's paid up capital carrying voting rights.

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Such transfers are done at the prevailing market price for quoted instruments on

spot basis.

The securities so transferred shall be in conformity with the investment objective

of the scheme to which such transfer has been made.

A scheme may invest in another scheme under the same asset management

company or any other mutual fund without charging any fees, provided that

aggregate interscheme investment made by all schemes under the same

management or in schemes under the management of any other asset management

company shall not exceed 5% of the net asset value of the mutual fund.

The initial issue expenses in respect of any scheme may not exceed six per cent of

the funds raised under that scheme.

Every mutual fund shall buy and sell securities on the basis of deliveries and shall

in all cases of purchases, take delivery of relative securities and in all cases of

sale, deliver the securities and shall in no case put itself in a position whereby it

has to make short sale or carry forward transaction or engage in badla finance.

Every mutual fund shall, get the securities purchased or transferred in the name of

the mutual fund on account of the concerned scheme, wherever investments are

intended to be of long-term nature.

Pending deployment of funds of a scheme in securities in terms of investment

objectives of the scheme a mutual fund can invest the funds of the scheme in short

term deposits of scheduled commercial banks.

No mutual fund scheme shall make any investment in;

i. Any unlisted security of an associate or group company of the

sponsor; or

ii. Any security issued by way of private placement by anassociate or group company of the sponsor; or

The listed securities of group companies of the

sponsor which is in excess of 30% of the net assets

[of all the schemes of a mutual fund]

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No mutual fund scheme shall invest more than 10 per cent of its NAV in the

equity shares or equity related instruments of any company. Provided that, the

limit of 10 per cent 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 equityshares or equity related investments in case of open-ended scheme and 10% of its

NAV in case of close-ended scheme.

Concept

Life makes many demands of us. Woven into different threads of life is the inescapable

truth that money is a means to many an end. Mutual funds are investment products that

operate on the principle of strength in numbers. They collect money from a large group

of investors, pool it together, and invest it in various securities, in line with their

objective. They are an alternative to investing directly. My project is to compare the

returns of different equity diversified mutual funds. People invest in different mutual

funds. Mutual funds are the next best thing if you think about investments. By investing

in a mutual fund a person can get good returns on his/her investment. This project aims to

find out the returns different mutual funds give and after analyzing the different returns

we can know which mutual fund is good for the investors to invest. Typically, an equity

fund holds 25-30 stocks and a debt fund holds 25-30 debt instruments.

In the long term, equities have been known to outperform every other asset class. Its a

truism, but one that merits iteration, such are the wonders equities can work into our

personal finances. That is, when picked carefully and managed smartly. We can build and

maintain a portfolio by ourselves research stocks, buy and sell them through a broker,

and follow up regularly. Alternatively if we dont understand the market or dont want to

expend time and energy in this pursuit, we can let equity funds go to work for us. They

can be just as effective as direct investing and in many ways, a lot more convenient.

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Equity funds pool savings of many investors, and invest this sum in a bunch of stocks

typically 25-30 stocks, across various sectors. So, a portfolio of the average equity fund

might look something like this: Reliance, Infosys, GE, Hindustan Lever and some more.

For an affordable amount, starting from as little as Rs. 1000/-, we can pick up a stake in

all these companies, and their fortunes, through an equity fund. The fund house does

everything for us, for a nominal fee. Its fund managers and analysts track the market and

sift through the universe of stocks, and construct portfolios capable of delivering returns

characteristic of equities.

If you are looking to maximize returns on your investment, and can bear the risk of it

eroding temporarily in that pursuit, consider equity funds. The universe of equity funds

comprises many kinds of schemes, each of which services a specific investment

objective. Equity fund has been broken down into five categories, which collectively

cover the risk-return spectrum of equities. They are:-

(1) Index Funds, Exchange Traded Funds (ETFS),

(2) Equity Linked Savings Schemes (ELSS),

(3) Diversified Equity Funds,

(4) Sector Funds, and

(5) Specialty Funds.

Of the various kinds of equity schemes, diversified equity funds are the most popular

among investors. Their popularity stems from the broad and dynamic exposure to the

market they offer. They invest in many stocks across many sectors, and because they

have the freedom to chop and churn their portfolios as they like, diversified equity funds

are a good proxy to the stock market.

Diversified equity funds aim to outperform the market, which is represented by stock

indices such as the BSEs (Bombay Stock Exchange) 30-share Sensex or the NSEs

(National Stock Exchange) 50-share S&P CNX Nifty. In order to achieve this objective,

they actively manage their portfolios. Compared to most other types of equity schemes,

diversified funds are governed by fewer rules. They can invest in all listed stocks, and

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even in unlisted stocks. They can invest in whichever sector they like, in whatever ratio

they like. The deviations in equity funds can pay off handsomely or back-fire badly, as is

reflected in the performance of actively managed diversified funds, which typically takes

on a wide range. So, for instance, even when the Sensex or the Nifty has shot up 50%,

some diversified schemes would have returned twice that much, while some would have

risen just 5%. Thats why its important to choose our fund house and scheme well.

This study aims to explore and compare the risk and returns of equity diversified mutual

funds of different companies offered by ICICI Bank. Further it aims to give a

comparative and descriptive analysis of their portfolios and top holdings. The project will

find out the risk and return level of different equity diversified mutual funds. Comparison

of different equity diversified mutual funds will help us to know which equity fund is

doing very well and which one is the best to invest in.

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TOP FUNDS RANKED ON THE BASIS OFPERFORMANCE AS ON JUL 12, 2007 (ON 15 DAYS )Top Debt Funds.

Performance in %

Scheme Name 15 Days91-

days1yr Inception Date

LIC MF Unit Linked Insurance scheme 4.2059 16.3279 33.5011 9.9035Jul 12,2007

3.4216 5.0968 17.6666 8.5095Jul 12,2007

UTI CRTS 81 - Growth 2.5024 7.5606 6.1855 0.6035Jul 12,2007

UTI CRTS 81 - Dividend 2.5015 6.9797 10.9138 11.8637Jul 12,2007

Birla Income Plus - Quarterly Dividend 2.2684 3.8184 6.9803 6.5756Jul 12,2007

Top Balanced Funds.

Performance in %

Scheme Name 15 Days91-days

1yr Inception Date

JM Balanced - Dividend 6.9186 19.9063 40.8173 10.4134Jul 12,2007

JM Balanced - Growth 6.9186 19.9207 40.7902 12.492Jul 12,2007

Kotak Dynamic Asset Allocation Fund -Growth

6.3692 24.5082 N.A 27.9275Jul 12,2007

LIC Balanced - Plan C (Growth) 4.8841 11.9889 23.661 9.7864Jul 12,2007

LIC Balanced - Plan A (Dividend) 4.8838 11.9895 23.7693 8.344Jul 12,2007

Top Short Term Debt Funds.

Performance in %


1yr Inception Date

Templeton India Money Market Account- Chq Wri Acc - Growth 0.4755 2.0825 3.0923 0.291 Jul 12,2007

Escorts Liquid Plan - Growth 0.3466 2.2258 7.2257 6.422Jul 12,

2007

Escorts Liquid Plan - Dly Dividend 0.3466 2.2258 7.2257 6.422Jul 12,2007

Escorts Liquid Plan - Wkly Dividend 0.3466 2.2258 7.2257 6.422Jul 12,2007

Escorts Liquid Plan - Mtly Dividend 0.3466 2.2258 7.2257 6.422Jul 12,2007

Top Diversified Funds.

43
http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LC002http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=UT281http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=UT106http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=BM001http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM005http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM006http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=KM168http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=KM168http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LC006http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LC004http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=KP006http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=KP006http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=EM016http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=EM017http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=EM018http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=EM019http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=UT281http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=UT106http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=BM001http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM005http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM006http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=KM168http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=KM168http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LC006http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LC004http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=KP006http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=KP006http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=EM016http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=EM017http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=EM018http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=EM019http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LC002


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Performance in %


1yr InceptionDate

JM Hi Fi Fund - Dividend 10.7888 29.8594 36.7559 16.313Jul 12,2007

JM Hi Fi Fund - Growth 10.7879 29.8798 36.7774 16.3275Jul 12,2007

ABN AMRO Future Leaders Fund -Dividend

9.2809 28.6221 58.9387 19.2463Jul 12,2007

ABN AMRO Future Leaders Fund -Growth

9.2801 28.6325 59.1155 19.2544Jul 12,2007

ABN AMRO Opportunities Fund -Growth

8.3775 31.6251 67.9857 59.6113Jul 12,2007

Top Index Funds.

Performance in %


1yr InceptionDate

LIC MF Index Fund - Sensex AdvantagePlan - Growth

4.4723 14.9884 30.6777 28.7861Jul 12,2007

LIC MF Index Fund - Sensex AdvantagePlan - Div

4.4721 14.9886 30.5386 22.9117Jul 12,2007

Birla Index Fund - Growth 4.461 17.9996 36.1502 36.4652 Jul 12,2007

Birla Index Fund - Dividend 4.4608 18.0002 35.6255 26.513Jul 12,2007

HDFC Index Fund - Sensex Plus Plan 4.2151 17.023 41.0944 38.6479Jul 12,2007

Top Sector Funds.

Performance in %


1yr InceptionDate

JM Basic Fund 11.1111 37.3546 85.3333 19.2188Jul 12,2007

Reliance Pharma Fund - Growth 9.2289 35.8741 71.9033 38.4579Jul 12,

2007

Reliance Pharma Fund - Bonus 9.2289 35.8741 71.9033 38.4579Jul 12,2007

Reliance Pharma Fund - Dividend 9.228 35.8705 71.9549 36.5713Jul 12,2007

Birla SunLife Basic Industries - Growth 7.7014 25.4339 48.626 32.3486Jul 12,2007

Top Tax Planning Funds.

Performance in %


1yr InceptionDate

Lotus India Tax Plan - Dividend 7.0822 23.127 N.A 23.3167Jul 12,2007

Lotus India Tax Plan - Growth 7.0822 23.127 N.A 23.3167 Jul 12,2007

Principal Personal Taxsaver 6.5917 28.8859 73.893 31.8699Jul 12,2007

JM Equity Tax Saver Fund - Series I -Dividend

6.4601 N.A N.A 80.8454Jul 12,2007

JM Equity Tax Saver Fund - Series I -Growth

6.4601 N.A N.A 80.8454Jul 12,2007

44
http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM117http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM116http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=AB053http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=AB053http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=AB052http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=AB052http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=AB022http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=AB022http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LC046http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LC046http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LC056http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LC056http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=BM041http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=BM066http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=HD029http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM009http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=RC095http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=RC096http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=RC097http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=AC016http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LT011http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LT012http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JF003http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM159http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM159http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM160http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM160http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM117http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM116http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=AB053http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=AB053http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=AB052http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=AB052http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=AB022http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=AB022http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LC046http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LC046http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LC056http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LC056http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=BM041http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=BM066http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=HD029http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM009http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=RC095http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=RC096http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=RC097http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=AC016http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LT011http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=LT012http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JF003http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM159http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM159http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM160http://mutualfundsindia.com/fund_facts_rpt.asp?scheme=JM160


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DETAILS ON TOP DIVERSIFIED FUND

ABN AMRO FUTURE LEADERS FUND - GROWTH

Objective

To seek to generate long-term capitalappreciation by investing primarily in

companies with high growthopportunities in the middle and small

capitalization segment, defined as FutureLeaders. The fund will emphasize on

companies that appear to offeropportunities for long-term growth and

will be inclined towards companies thatare driven by dynamic style of

management and entrepreneurial flair.

Scheme Performance (%) as on Jul12 , 2007

14 days

1 month

3 months

1 year

3 yrs*

Inception*

9.28 16.09 28.6359.12

NA 19.25

Top 10 Holdings as on Jun 29,

2007

Company NatureValue(Cr.)

%

NorthgateTechnologies Ltd.

EQ 15.91 9.93

Asian Electronics Ltd EQ 12.44 7.77

Television EighteenIndia Ltd

EQ 7.08 4.42

Hindustan Oil

Exploration CompanyLtd

EQ 5.78 3.61

Unitech Ltd EQ 5.7 3.56

Dish TV India Ltd EQ 5.62 3.51

Aptech Ltd EQ 5.61 3.51

Phoenix Lamps India

LtdEQ 5.5 3.43

EmailAddres

s

[email protected]

.com

Net

AssetValue

(Rs/Uni

t)

12.341

As On Jul 12, 2007

Fund Information

Type of Scheme Open Ended

Nature of Scheme Equity

Inception Date Apr 7, 2006

Face

Value(Rs/Unit)10

Fund Size (Rs. in

crores)

160.1794 on Jun

29, 2007Increase/Decrease

since May 31,2007 (Rs. in

crores)

-37.995

Minimum

Investment (Rs)5000

Purchase

RedemptionsDaily

NAV Calculation Daily

Entry Load

Amount Bet. 0 to49999999 then

Entry load is2.25%. and

Amount greaterthan 50000000

then Entry load is0%.

Exit Load If redeemed bet. 0Month to 6 Month;

and Amount Bet. 0to 49999999 then

Exit load is 1%. If

45
mailto:[email protected]%20mailto:[email protected]%20mailto:[email protected]%20mailto:[email protected]%20


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Deepak Fertilizers &

Petrochemicals CorpLtd

EQ 5.26 3.29

India Infoline EQ 5.12 3.2

Mutual Fund

ABN AMRO Mutual Fund

101, 10th Floor Sakhar Bhavan

Nariman Point

Mumbai

Tel.-56563862,,

Asset Management Company

ABN AMRO Asset Management (India)

Limited101, 10th Floor Sakhar Bhavan

Nariman Point

Mumbai - 400021

Tel.- 56563862,

Registrar

NA

redeemed bet. 0

Month to 3 Month;and Amount

greater than50000000 then

Exit load is 0.5%.

Top Industry Allocation as on Jun29, 2007

Computers - Software &

Education

24.354

1%

Entertainment18.304

7%

Electricals & Electrical

Equipments

7.7673

%

Engineering & Industrial

Machinery

6.7487

%

Housing & Construction5.3229%

Auto & Auto ancilliaries5.0047

%

Oil & Gas, Petroleum &

Refinery

4.7173

%

Diversified3.885

%

Fertilizers, Pesticides &

Agrochemicals

3.2851

%

Miscellaneous2.9732

%

Asset Allocation as on Jun 29,

2007

Equity DebtMoneyMarket

96.17 0 3.83

--

----

24

26

18

19

8

4

7

6

5

7

5

4

5

5

46


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A B C D E F G

BIRLA INCOME PLUS - QUARTERLY DIVIDEND

ObjectiveAims to generate consistent incomethrough superior yield with moderate

level of risk.

Scheme Performance (%) as on Jul

12 , 2007

14 days

1 month

3 months

1 year

3 yrs*

Inception*

2.27 2.49 3.82 6.98 3.99 6.58

Top 10 Holdings as on Jun 29,2007

Company Nature Value(Cr.)

%

Export-Import Bank

of India LtdDebt 21.3 10.42

State Bank of India Debt 18.09 8.85

Housing

Development

Finance CorporationLtd

Debt 16.99 8.31

Power FinanceCorporation Ltd

Debt 15.14 7.41

Indian Railway

Finance CorporationLtd

Debt 10 4.89

GOI (Oil Bonds) Debt 9.5 4.65

LIC Housing FinanceLtd

Debt 7 3.43

CitifinancialConsumer Finance

India Ltd.

Debt 5.07 2.48

Auto Loan Securities

TrustDebt 5.06 2.47

EmailAddress

[email protected]

Net AssetValue(Rs/Unit)

10.3107

As On Jul 12, 2007

Fund Information


Nature of Scheme Debt

Inception Date Oct 21, 1995

Face

Value(Rs/Unit)10

Fund Size (Rs. incrores)

204.3806 on Jun29, 2007

Increase/Decrease

since May 31,2007 (Rs. incrores)

-1.524

MinimumInvestment (Rs)

5000

PurchaseRedemptions

Daily


Fund Manager Navneet Munot

Entry Load Entry Load is 0%.

Exit Load

If redeemed bet. 0

Days to 180 Days;and Amount Bet. 0

to 1000000 thenExit load is 0.6%.

and Amountgreater than

1000001 then Exitload is 0%.

Last Dividend Declared

1.529%

On Jun 15, 2007

47
mailto:[email protected]:[email protected]


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Sundaram Finance

LtdDebt 5.03 2.46

Mutual Fund

Birla Mutual Fund

Ahura Centre , 2nd Floor, A. 96/A-D,

Mahakali Caves Road, Andheri (E)

MumbaiTel.-56928000, ,


Birla Sunlife Asset Management

Company Ltd.

2nd Floor, Tower B Ahura Centre, 96 A

D,

Mahakali Caves Road, Andheri(E)

Mumbai - 400093

Tel.- 56928000,

Registrar

NA

*Returns are annualized

Credit Quality as on Jun 29, 2007

Rating Corpus(%)

A1+ 30.0711

AA+ 4.8451

AAA 55.3382

LAA 1.3226

Sovereign 4.6482Average Maturity Profile as on Jun

29, 2007 -2212 DAYS


2007

Equity DebtMoney

Market

0 66.15 33.85

Change in Portfolio(Sector-Wise)(%age)

---

--

---

---

--

49

51

42

23

5

5

0

0

0

0

Jun 29, 2007May 31, 2007

A

B

C

D

E

48


49/123

A B C D E

LIC MF UNIT LINKED INSURANCE SCHEME

Objective

To generate long term capitalappreciation and offer Tax rebate u/s 80

C as well as additional benefits of a life& insurance cover free accident

insurance cover.

Scheme Performance (%) as on Jul12 , 2007

14 days

1 month

3 months

1 year

3 yrs*

Inception*

4.21 9.25 16.33 33.528.5

89.9

Top 10 Holdings as on Jun 29,

2007


%

Omaxe Ltd Debt 5 8.49

Infosys Technologies

LtdEQ 4.63 7.85

Bharti Airtel Ltd EQ 4.18 7.09

Housing DevelopmentFinance Corporation

Ltd

EQ 4.06 6.89

First Leasing

Company of India LtdDebt 4 6.79

Essar Power Ltd Debt 4 6.79

Grasim Industries Ltd EQ 3.43 5.82

Reliance Industries

LtdEQ 3.4 5.77

Bharat Heavy

Electricals LtdEQ 3.08 5.22

HDFC Bank Ltd EQ 2.29 3.88

Mutual Fund

LIC Mutual Fund

Industrial Assurance Bldg.

4th Floor, Opp.Churchgate Stn.

Mumbai

Tel.-22885971,55719750,

EmailAddress

[email protected]

NetAsset

Value(Rs/Unit)

12.159

5As On Jul 13, 2007

Fund Information


Nature of Scheme Debt

Inception Date Jun 19, 1989

Face

Value(Rs/Unit)10

Fund Size (Rs. in

crores)

58.9179 on Jun

29, 2007Increase/Decrease

since May 31,2007 (Rs. in

crores)

2.813

Minimum

Investment (Rs)10000

Purchase

RedemptionsDaily


Fund Manager Bichitra Mahapatra

Entry LoadEntry Load is

2.25%.Exit Load Exit Load is 0%.

Last Dividend Declared

18 % On Jan 23, 2007

Credit Quality as on Jun 29, 2007

Rating Corpus(%)

A 8.4864

AA 0.3403

PR1 6.7891

Average Maturity Profile as on Jun29, 2007

190 days

Tax Benefits u/s

88,112 of Income Tax Act, 1961

Special Features

Free accident cover equal to life

Insurance cover worth 30000/-

49


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Jeevan Bima Sahyog Asset Management

Company Ltd.

Industrial Assurance Building, 4 th Floor

Opp. Churchgate Station

Mumbai - 400020

Tel.- 22885971,55719750

Registrar

NA

*Returns are annualized


2007

Equity DebtMoney

Market

77.7 27.48 -5.18


-

----

19

19

15

12

13

14

9

10

9

10

8

9

6

6

A

B

C

D

E

F

G

A B C D E F G

50


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LIC BALANCED - PLAN C (GROWTH)

Objective

The Scheme aims to provide regular flow ofdividend and capital appreciation especially

when the unit are held for a longer period.Scheme Performance (%) as on Jul 12 ,2007

14 days

1 month

3 months

1 year

3 yrs*

Inception*

4.88 9.88 11.9923.66

27.58

9.79

Top 10 Holdings as on Jun 29, 2007


%

Magma Leasing Ltd Debt 3 7.85

First Leasing Company of

India Ltd

Debt 3 7.84

Associated CementCompanies Ltd

EQ 2.35 6.14

Mahindra & Mahindra Ltd EQ 2.17 5.67

DLF Universal Ltd Debt 2.02 5.28

Bharti Airtel Ltd EQ 1.67 4.37

Satyam ComputerServices Ltd

EQ 1.64 4.27

Reliance CommunicationVentures Ltd.

EQ 1.55 4.05

Industrial FinanceCorporation of India Ltd

Debt 1.5 3.92

Maruti Udyog Ltd EQ 1.49 3.88

Mutual Fund

LIC Mutual Fund

Industrial Assurance Bldg.

4th Floor, Opp.Churchgate Stn.

Mumbai

Tel.-22885971,55719750,


Jeevan Bima Sahyog Asset ManagementCompany Ltd.

EmailAddress

[email protected]

NetAssetValue

(Rs/Unit)

47.4509 As On Jul 13, 2007

Fund Information


Nature of Scheme Equity & Debt

Inception Date Jan 1, 1991

Face Value(Rs/Unit) 10

Fund Size (Rs. incrores)

38.2693 on Jun 29,2007

Increase/Decreasesince May 31,2007 (Rs. in crores)

2.503

Minimum Investment

(Rs)

1000

Purchase Redemptions Daily


Entry Load

Amount Bet. 0 to10000000 then Entry

load is 2.25%. andAmount greater than10000001 then Entryload is 0%.

Exit Load Exit Load is 0%.

51


52/123

Industrial Assurance Building, 4 th Floor

Opp. Churchgate Station

Mumbai - 400020

Tel.- 22885971,55719750

Registrar

NA

Top Industry Allocation as on Jun 29,2007

Finance 27.0131%

Telecom 11.8537%

Auto & Auto ancilliaries 9.5501%

Housing & Construction 7.8728%

Computers - Software & Education 7.3219%

Cement 6.1439%

Diversified 4.8381%

Oil & Gas, Petroleum & Refinery 4.1196%

Power Generation, Transmission &Equip

3.6251%

Textiles 3.2732%

Average Maturity Profile as on Jun 29,2007

146 days

Asset Allocation as on Jun 29, 2007

Equity Debt Money Market

70.12 28.79 1.09


---

----

27

28

12

13

10

10

8

8

7

5

6

6

5

8

A

B

C

D

52


53/123

E

F

G

A B C D E F G

RELIANCE PHARMA FUND GROWTH

Objective

To generate consistent returns income securities of pharma an

Scheme Performance (%) as

14 days 1 month

9.23 14.09

Top 10 Holdings as on

Company

Ankur Drugs & Pharna Ltd.

Divis Laboratories Limited

Dishman Pharmaceuticals &

Chemicals

Sun Pharmaceuticals Industries

FDC Ltd

Aurobindo Pharma Ltd

Lupin Ltd.

Aventis Pharma India Ltd.

Ranbaxy Laboratories Ltd

Torrent Pharmaceuticals Ltd

Mutual Fund

Reliance Mutual Fund

Kamala Mills Compound, Trade 7th Floor, Senapati Bapat Marg,

Mumbai

Email

Address

NetAssetValue

(Rs/Unit)

FundInformati

Type of

Scheme

Nature of

Scheme

InceptionDate

Face

Value(Rs/Unit)

FundSize (Rs.

in crores)

Increase/

Decreasesince

2007

. incrores)

MinimumInvestme

nt (Rs)

Purchase

Redemptions

53


54/123

Tel.-30414800,,

HDFC INDEX FUND -

SENSEX PLUS PLAN

Objective

The plan will invest between 80 -90 percent of the money in 30scrips comprising the SENSEX inthe same proportion. The balancewill be invested in the other non-index scrips.

Scheme Performance (%) as onJul 12 , 2007

14 days

1 month

3 months

1 year

3s*

4.22 6.93 17.02 41.09

46.4

Top 10 Holdings as on2007

Company NatureValue

(Cr.)

RelianceIndustries Ltd

EQ 1.69

InfosysTechnologiesLtd

EQ 1.3

ICICI BANKLTD.

EQ 1.22

ABB Ltd EQ 1.1

Bharti AirtelLtd

EQ 0.79

Larsen &Toubro Limited

EQ 0.79

HousingDevelopmentFinance

Corporation Ltd

EQ 0.65

ITC Ltd EQ 0.58

Oil & NaturalGas Corpn Ltd

EQ 0.55

RelianceCommunicationVentures Ltd.

EQ 0.53

Mutual Fund

HDFC Mutual Fund

Ramon House, 3rd Floor, H.T.Parekh Marg

169, Backbay Reclamation,Churchgate

Mumbai

Tel.-22029111,56316333,


HD