papai project (2)

AProject Report

On

A STUDY OF RELIGARE MUTUAL FUND

Submitted to fulfillment

Of the requirement to award the degree of

Master of Business Administration

In order to study the above information the researcher has organized the present report as per the following:

Chapter 1: Focuses attention on introduction to equity and mutual funds and Company Profile of Religare Securities Ltd., kolkata.

Chapter 2: Focuses on design of study, problem, scope and objectives of the study, and limitations.

Chapter 3: Concentrates on the methodology and sources of data collection, Sample design and tools and techniques of data collection.

Chapter 4: Is concerned with the analysis and interpretation of data.

Chapter 5: Provides the summary of findings.

Chapter 6: Deals with the suggestions and conclusions for the benefits of prospective Investors and market analysers.

Lastly, it includes the annexure and bibliography.

Chapter 1

Focuses attention on introduction

to equity and mutual funds and

Company Profile of Religare

Securities Ltd., KOLKATA.

INTRODUCTION TO EQUITY CAPITAL AND MUTUAL FUND

Issue of shares is the most important method of raising capital. Finance raised by

the issue of shares serves as a financial floor to the company’s capital structure. Shares

indicate the ownership or equity interest in the assets of the company. Shares are of

different nominal or face values and of different kinds to attract different kinds of

investors. The maximum amount of capital to be raised by the issue of shares is

mentioned in the memorandum of association.

During 1990-91 and 1991-92, equity accounts for 35 to 39 percent of the total

capital raised respectively. This proportion was reversed in 1992-93, the first year of free

pricing, when the share of equity increased to 62 percent. His share of equity finance

increased to a high of 73.18 percent in 1994-95. However, in 1995-96 there is a rise in the

importance of debt largely due to the high interest rates in the economy and negative

returns from the secondary market.

The mutual fund industry in India started in 1964 with the formation of Unit Trust

of India, at the initiative of the Government of India. The 1993 SEBI Regulations were

substituted by a more comprehensive and revised Mutual Fund Regulations in 1996.

The end of millennium marks 36 years of existence of mutual funds in this

country. The ride through these 36 years is not been smooth. Investor opinion is still

divided. While some are for mutual funds others are against it. UTI commenced its

operations from July 1964. The impetus for establishing a formal institution came from

the desire to increase the propensity of the middle and lower groups to save and to invest.

UTI came in to existence during a period marked by great political and economic turmoil

that depressed the financial market; entrepreneurs were rather hesitant to enter the capital

markets.

Concept of Equity Capital and Mutual Fund

The term Equity literally means the stock or ownership of a company. They are

also known as ordinary shares. The rate of dividend on equity shares varies according to

the amount of profit available and the intention of board of directors. In the event of

winding up of the company, equity shares can be refunded only after all other claims,

including those of preference shares for the refund of their capital, have been met.

Equity capital or financing is money raised by a business in exchange for a share

of ownership in the company. Ownership is represented by owning shares of stock

outright or having the right to convert other financial instruments into stock of that

private company. Two key sources of equity capital for new and emerging businesses are

angel investors and venture capital firms.

Equity capital is represented by funds that are raised by a business, in exchange

for a share of ownership in the company. Equity financing allows a business to obtain

funds without incurring debt, or without having to repay a specific amount of money at a

particular time.

The Equity Capital Markets Group (ECM) oversees the Firm's activities in the

primary equity and equity-linked markets, as well as monetization and equity derivatives.

It provides support in the origination of primary market transactions and manages their

structuring, syndication, marketing and distribution.

The world over, it’s been shown that over long tenures, equities–with their risk

premium–have provided approximately 7 percentage points higher returns than risk-free

options. People have to accumulate significant amounts of wealth during their working

years. Right now, a 17-year bond gives you only 5.5 per cent. So, it is imperative that

these people have some exposure to equity.

A mutual fund is a trust that pools the money of many investors -- its shareholders

-- to invest in a variety of different securities. Investments may be in stocks, bonds,

money market securities or some combination of these. Those securities are

professionally managed on behalf of the shareholders, and each investor holds a pro rata

share of the portfolio -- entitled to any profits when the securities are sold, but subject to

any losses in value as well.

A mutual fund is a group of investors operating through a fund manager to

purchase a diverse portfolio of stocks or bonds. There are myriad kinds of mutual funds,

each with its own goals and methodologies. Whether or not a mutual fund is a good

investment is a matter of much public debate, with many claiming they are excellent for

the average person, and others saying they are simply a poor way to invest.

For the individual investor, mutual funds provide the benefit of having someone

else manage your investments, take care of recordkeeping for your account, and diversify

your rupees over many different securities that may not be available or affordable to you

otherwise. Today, minimum investment requirements on many funds are low enough that

even the smallest investor can get started in mutual funds.

A mutual fund, by its very nature, is diversified -- its assets are invested in many

different securities. Beyond that, there are many different types of mutual funds with

different objectives and levels of growth potential, furthering your chances to diversify.

Many critics of mutual funds point out that scarcely over 20% of mutual funds

outperform the Standard and Poor's 500 Index. This means that nearly 80% of the time,

an investor would have been more profitable by simply buying equal shares in all 500 of

the companies currently on the S&P 500.

SCHEMES OF MUTUAL FUNDS:

Schemes according to Maturity Period:

A mutual fund scheme can be classified into open-ended scheme or close-ended

scheme depending on its maturity period.

Open-ended Scheme:

An open-ended fund or scheme is one that is available for subscription and

repurchase on a continuous basis. These schemes do not have a fixed maturity period.

Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices

which are declared on a daily basis. The key feature of open-end schemes is liquidity.

Close-ended Scheme:

A close-ended fund or scheme 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 or sell the units of the scheme on the stock exchanges where the

units are listed. In order to provide an 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 investor i.e. either repurchase facility or through listing on stock

exchanges. These mutual funds schemes disclose NAV generally on weekly basis.

Schemes according to Investment Objective:

A scheme can also be classified as growth scheme, income scheme, or balanced

scheme considering its investment objective. Such schemes may be open-ended or close-

ended schemes as described earlier. Such schemes may be classified mainly as follows:

Growth / Equity Oriented Scheme:

The aim of growth funds 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.

Income / 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, corporate

debentures, 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.

Balanced Scheme:

The aim of balanced funds is to provide both growth and 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 because of fluctuations 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 Liquid Fund:

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

preservation of capital and moderate income. These schemes invest exclusively in safer

short-term instruments such as treasury bills, certificates of deposit, commercial paper

and inter-bank call money, government securities, etc. Returns on these schemes fluctuate

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

individual investors as a means to 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 other 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

weightage comprising of an index. NAV’s 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 disclosures

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

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. e.g. Pharmaceuticals, Software, Fast

Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are

dependent on the performance of the respective sectors/industries.

Tax Saving Schemes:

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

Income Tax Act, 1961 as the Government offers tax incentives for investment in

specified avenues. e.g. Equity Linked Savings 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 risks associated are

like any equity-oriented scheme.

Advantages of Equity Capital:

1. High dividend and high value:-

In times of prosperity, the equity shareholders get a very high rate of dividend,

sufficiently higher than that on preference shares. At the same time, their share value will

also go up in the market.

2. Voting rights:-

It is only the equity shareholders who enjoy voting rights on all the policy matters

of the company.

3. Pre-emptive right to new shares:-

Equity shareholders have the pre-emptive right to purchase new shares. Under the provisions of the companies act, the existing shareholders of the company have a right to allotment of newly issued shared.

4. Many privileges and rights:-

Equity shareholders enjoy many privileges and rights. For example, they can vote

at meetings, elect directors, control the directors to run the company efficiently and

profitably, look into the books and records of the company and transfer or sell their

shareholdings.

Advantages of Mutual Fund:

1. Professional Investment Management:-

By pooling the funds of thousands of investors, mutual funds provide full-time,

high-level professional management that few individual investors can afford to obtain

independently. Such management is vital to achieving results in today's complex markets.

Your fund managers' interests are tied to yours, because their compensation is based not

on sales commissions, but on how well the fund performs.

2. Diversification:-

Mutual funds invest in a broad range of securities. This limits investment risk by

reducing the effect of a possible decline in the value of any one security. Mutual fund

shareowners can benefit from diversification techniques usually available only to

investors wealthy enough to buy significant positions in a wide variety of securities.

3. Low Cost:-

If you tried to create your own diversified portfolio of 50 stocks, you'd need at

least Rs.1,00,000 and you'd pay thousands of rupees in commissions to assemble your

portfolio. A mutual fund lets you participate in a diversified portfolio for as little as

Rs.10,000, and sometimes less. And if you buy a no-load fund, you pay or no sale

charges to own them.

4. Convenience and Flexibility:-

You own just one security rather than many, yet enjoy the benefits of a diversified

portfolio and a wide range of services. Fund managers decide what securities to trade,

clip the bond coupons, collect the interest payments and see that your dividends on

portfolio securities are received and your rights exercised.

5. Quick, Personalized Service:-

Most funds now offer extensive websites with a host of shareholder services for

immediate access to information about your fund account. Or a phone call puts you in

touch with a trained investment specialist at a mutual fund company who can provide

information you can use to make your own investment choices, assist you with buying

and selling your fund shares.

6. Ease of Investing:-

You may open or add to your account and conduct transactions or business with

the fund by mail, telephone or bank wire. You can even arrange for automatic monthly

investments by authorizing electronic fund transfers from your checking account in any

amount and on a date you choose.

7. Total Liquidity, Easy Withdrawal:-

You can easily redeem your shares anytime you need cash by letter, telephone,

bank wire or check, depending on the fund. Your proceeds are usually available within a

day or two.

8. Life Cycle Planning:-

With no-load mutual funds, you can link your investment plans to future

individual and family needs -- and make changes as your life cycles change. You can

invest in growth funds for future college tuition needs, then move to income funds for

retirement, and adjust your investments as your needs change throughout your life.

9. Market Cycle Planning:-

For investors who understand how to actively manage their portfolio, mutual fund

investments can be moved as market conditions change. You can place your funds in

equities when the market is on the upswing and move into money market funds on the

downswing or take any number of steps to ensure that your investments are meeting your

needs in changing market climates.

10. Investor Information:-

Shareholders receive regular reports from the funds, including details of

transactions on a year-to-date basis. The current net asset value of your shares (the price

at which you may purchase or redeem them) appears in the mutual fund price listings of

daily newspapers. You can also obtain pricing and performance results for the all mutual

funds at this site, or it can be obtained by phone from the fund.

11. Periodic Withdrawals:-

If you want steady monthly income, many funds allow you to arrange for monthly

fixed checks to be sent to you, first by distributing some or all of the income and then,

if necessary, by dipping into your principal.

12. Dividend Options:-

You can receive all dividend payments in cash. Or you can have them reinvested

in the fund free of charge, in which case the dividends are automatically compounded.

This can make a significant contribution to your long-term investment results.

13. Automatic Direct Deposit:-

You can usually arrange to have regular, third-party payments -- such as Social

Security or pension checks -- deposited directly into your fund account. This puts your

money to work immediately, without waiting to clear your checking account, and it saves

you from worrying about checks being lost in the mail.

14. Recordkeeping Service:-

With your own portfolio of stocks and bonds, you would have to do your own

recordkeeping of purchases, sales, dividends, interest, short-term and long-term gains and

losses. Mutual funds provide confirmation of your transactions and necessary tax forms

to help you keep track of your investments and tax reporting.

15. Safekeeping:-

When you own shares in a mutual fund, you own securities in many companies

without having to worry about keeping stock certificates in safe deposit boxes or sending

them by registered mail. You don't even have to worry about handling the mutual fund

stock certificates; the fund maintains your account on its books and sends you periodic

statements keeping track of all your transactions.

16. Retirement and College Plans:-

Mutual funds are well suited to Individual Retirement Accounts and most funds

offer IRA-approved prototype and master plans for individual retirement accounts (IRAs)

and Keogh, 403(b), SEP-IRA and 401(k) retirement plans.

17. Online Services:-

The internet provides a fast, convenient way for investors to access financial

information. A host of services are available to the online investor including direct access

to no-load companies. Visit Company Links to access these Companies.

18. Sweep Accounts:-

With many funds, if you choose not to reinvest your stock or bond fund dividends, you

can arrange to have them swept into your money market fund automatically. You get all

the advantages of both accounts with no extra effort.

19. Asset Management Accounts:-

These master accounts, available from many of the larger fund groups, enable you

to manage all your financial service needs under a single umbrella from unlimited check

writing and automatic bill paying to discount brokerage and credit card accounts.

Disadvantages of Equity Capital:

1. No refund of capital:-

Since equity shares cannot be refunded, excessive issue of such shares may leads

to overcapitalization, particularly when the earning capacity of the company declining.

2. Benefits only in prosperity:-

During the periods of prosperity, the company has to distribute heavy dividends

on these shares.

3. Manipulation of control:-

Since the equity shares have proportionate voting power, the company’s

management may be vitiated by manipulation of votes, clique-formation, abuse of proxy

rights etc.

4. High risk:-

Equity share holders cannot claim dividend as a matter of right, because the

decision to fit the rate of dividend on equity shares is vested in the Board of Directors.

Therefore investors as a class may find equity shares unsafe, unattractive and less

remunerative.

5. Unhealthy Speculation:-

During the period of boom, the market value of shares will go up, which leads to

unhealthy speculation in the stock market.

Disadvantages of Mutual Fund:

There are certainly some benefits to mutual fund investing, but you should also be

aware of the drawbacks associated with mutual funds.

1. No Insurance:-

Mutual funds, although regulated by the government, are not insured against

losses. The Federal Deposit Insurance Corporation (FDIC) only insures against certain

losses at banks, credit unions, and savings and loans, not mutual funds. That means that

despite the risk-reducing diversification benefits provided by mutual funds, losses can

occur, and it is possible (although extremely unlikely) that you could even lose your

entire investment.

2. Dilution:-

Although diversification reduces the amount of risk involved in investing in

mutual funds, it can also be a disadvantage due to dilution. For example, if a single

security held by a mutual fund doubles in value, the mutual fund itself would not double

in value because that security is only one small part of the fund's holdings. By holding a

large number of different investments, mutual funds tend to do neither exceptionally well

nor exceptionally poorly.

3. Fees and Expenses:-

Most mutual funds charge management and operating fees that pay for the fund's

management expenses (usually around 1.0% to 1.5% per year). In addition, some mutual

funds charge high sales commissions, 12b-1 fees, and redemption fees. And some funds

buy and trade shares so often that the transaction costs add up significantly. Some of

these expenses are charged on an ongoing basis, unlike stock investments, for which a

commission is paid only when you buy and sell (see Investor Guide University: Fees and

Expenses).

4. Poor Performance:-

Returns on a mutual fund are by no means guaranteed. In fact, on average, around

75% of all mutual funds fail to beat the major market indexes, like the S&P 500, and a

growing number of critics now question whether or not professional money managers

have better stock-picking capabilities than the average investor.

5. Loss of Control:-

The managers of mutual funds make all of the decisions about which securities to

buy and sell and when to do so. This can make it difficult for you when trying to manage

your portfolio. For example, the tax consequences of a decision by the manager to buy or

sell an asset at a certain time might not be optimal for you. You also should remember

that you are trusting someone else with your money when you invest in a mutual fund.

6. Trading Limitations:-

Although mutual funds are highly liquid in general, most mutual funds (called

open-ended funds) cannot be bought or sold in the middle of the trading day. You can

only buy and sell them at the end of the day, after they've calculated the current value of

their holdings.

7. Size:-

Some mutual funds are too big to find enough good investments. This is

especially true of funds that focus on small companies, given that there are strict rules

about how much of a single company a fund may own. If a mutual fund has $5 billion to

invest and is only able to invest an average of $50 million in each, then it needs to find at

least 100 such companies to invest in; as a result, the fund might be forced to lower its

standards when selecting companies to invest in.

8. Inefficiency of Cash Reserves:-

Mutual funds usually maintain large cash reserves as protection against a large

number of simultaneous withdrawals. Although this provides investors with liquidity, it

means that some of the fund's money is invested in cash instead of assets, which tends to

lower the investor's potential return.

9. Different Types:-

The advantages and disadvantages listed above apply to mutual funds in general.

However, there are over 10,000 mutual funds in operation, and these funds vary greatly

according to investment objective, size, strategy, and style. Mutual funds are available for

virtually every investment strategy (e.g. value, growth), every sector (e.g. biotech,

internet), and every country or region of the world. So even the process of selecting a

fund can be tedious.

Company Profile:

Religare is one of the leading integrated financial services institution of India. The

company offers a large and diverse bouquet of services ranging from equities,

commodities, insurance broking, to wealth advisory, portfolio management services,

personal finance services, Investment banking and institutional broking services. The

services are broadly clubbed across three key business verticals- Retail, Wealth

management and the Institutional spectrum. Religare Enterprises Limited is the

holding company for all its businesses, structured and being operated through

various subsidiaries.

Religare’s retail network spreads across the length and breadth of the country with

its presence through more than 1,217 locations across more than 392 cities and towns.

Having spread itself fairly well across the country and with the promise of not resting on

its laurels, it has also aggressively started eyeing global geographies.

Our Brand Identity

Name

Religare is a Latin word that translates as 'to bind together'. This name has been

chosen to reflect the integrated nature of the financial services the company offers. The

name is intended to unite and bring together the phenomenon of money and wealth to co-

exist and serve the interest of individuals and institutions, alike.

Symbol

The Religare name is paired with the symbol of a four-leaf clover. The four-leaf

clover is used to define the rare quality of good fortune that is the aim of every financial

plan. It has traditionally been considered good fortune to find a single four leaf clover

considering that statistically one may need to search through over 10,000 three-leaf

clovers to even find one four leaf clover.

Each leaf of the four-leaf clover has a special meaning in the sphere of Religare.

The first leaf of the clover represents H ope . The aspirations to succeed. The

dream of becoming. Of new possibilities. It is the beginning of every step and the

foundations on which a person reaches for the stars.

The second leaf of the clover represents T rust . The ability to place ones own faith

in another. To have a relationship as partners in a team. To accomplish a given

goal with the balance that brings satisfaction to all not in the binding but in the

bond that is built.

The third leaf of the clover represents C are . The secret ingredient that is the

cement in every relationship. The truth of feeling that underlines sincerity and

the triumph of diligence in every aspect. From it springs true warmth of service

and the ability to adapt to evolving environments with consideration to all.

The fourth and final leaf of the clover represents G ood F ortune . Signifying that rare

ability to meld opportunity and planning with circumstance to generate those often

looked for remunerative moments of success.

H ope. T rust. C are. G ood fortune . All elements perfectly combine in the

emblematic and rare, four-leaf clover to visually symbolize the values that bind

together and form the core of the Religare vision.

Industry : Finance - General Group : Ranbaxy Group BSE Code : 532915 NSE Code : RELIGARE

Market Lot : 1 Face Value : Rs. 10.00 Market Cap : Rs. 4022.15 Cr.

Our Envisaged Group Structure

Listings Incorporation Public Issue Date

BSE , NSE 30/01/1984 29/10/2007

Client Interface

Retail Spectrum- To cater to a large number of retail clients by offering all products

under one roof through the Branch Network and Online mode

Equity and Commodity Trading

Personal Finance Services

Mutual Funds

Insurance

Saving Products

Personal Credit

Personal Loans

Loans against Shares

Online Investment Portal

Institutional Spectrum- To Forge & build strong relationships with Corporate and

Institutions

Institutional Equity Broking

Investment Banking

Merchant Banking

Transaction Advisory

Corporate Finance

Wealth Spectrum - To provide customized wealth advisory services to High Net worth

Individuals

Wealth Advisory Services

Portfolio Management Services

International Advisory Fund Management Services

Priority Equity Client Services

Arts Initiative

New Initiatives:

Religare is on a fast and ambitious growth trajectory with some interesting plans in the pipeline

AEGON Religare Life Insurance - Life Insurance Company, a Joint Venture with Aegon one of the largest insurance and pension companies, globally

Religare AEGON AMC - Asset Management Company, a Joint Venture with Aegon

Religare Finance - Personal Loans / Credit Cards / Loan against Property / Mortgage & Reverse Mortgage

Online Trading - Agreement with IndusInd Bank to offer online trading services

Religare Macquarie Wealth Management Ltd - Wealth Management Company , a Joint Venture with Macquarie

Wealth Management Services - with WallStreet Electronica, Inc., a U.S. broker - dealer to give our Indian clients access to U.S markets

Religare Securities Ltd - Agreement with Vijay Co-operative Bank Ltd. and Tamilnadu Mercantile Bank Ltd. to offer offline trading services

*******

Chapter 2

Focuses on design of study,

problem, scope and objectives of

the study, and limitations.

Statement of the Problem:

In the current economic scenario interest rates are falling and fluctuation in the

share market has put investors in confusion. One finds it difficult to take decision on

investment. This is primarily, because investments are risky in nature and investors have

to consider various factors before investing in investment avenues. Therefore the study

aims to compare equity and mutual fund schemes in form their risk, return & liquidity

and also creating awareness about Equity and Mutual Fund Schemes among the

investors.

Objectives of the Study:

Saving money is not enough. Each of us also need to invest one’s savings

intelligently in order to have enough money available for funding the higher education of

one’s children, for buying a house, or for one’s own golden years. But the rapidly

growing number of investment avenues often lead to confusion. Objectives of the study

are to provide information to individual investors regarding their risk, and choosing the

best investment options to match their goals and attitude to risk.

1. To compare Equity and Mutual Fund Schemes in respect of their risk & return.

2. Analyzing the performance of equity shares and mutual fund schemes with their

benchmark.

3. Finding the Volatility of shares by using beta.

4. Provide information about pros and cons of investing in Equity and Mutual Funds

Scope of the Study

The project primarily deals with equity, derivatives, mutual funds, portfolio

management.

The study is limited to compare equity capital and mutual fund schemes in respect

of their risk, return and liquidity. The study covers 5 randomly selected stocks out of 30

BSE Sensex companies and 5 randomly selected mutual fund schemes out of mutual fund

industry in India for comparison. The analysis is strictly based on share price and unit

price information. Other company performance indicators are not considered.

It focuses on every month ending closing prices of during the period from 1st Apr,

2003 to 31st Mar, 2006.

Limitations of the Study

The time period for the project was limited to only one and half month and

information provided is limited to the extent of internet and journals.

A good number of explanatory variables must be taken in to consideration in

order to assess the share price movement. But due to time constraints detailed

analysis of each company were not made.

The information regarding the company’s, which were considered for the

analysis, not uniform in nature. That is, number of observations differs from

one/two company’s to other company’s.

Generalization of findings and conclusions of the study are likely to be disputed

as security prices are determined by so many factors. However, the findings and

conclusions drawn upon the primary and secondary data collected are expected to

throw some light on volatility of share prices.

This is a one time study.

This being an academic study suffers from time and cost constraints.

*******

Chapter 3

Concentrates on the methodology

and sources of data collection,

Sample design and tools and

techniques of data collection.

Methodology:

The whole study can be termed as comparative study. It is also a desk research

hence; there is no field work and collection of primary date for this research.

The study centers on comparing equity and mutual fund schemes in respect of

their risk, return and liquidity. However, with the objective and scope of the study in

mind, it was decided to base the study on return series of selected stocks and mutual fund

schemes.

BSE being the premier exchange of India was chosen for selecting stocks. It is

widely accepted that BSE Sensex is the one of the most reliable index of the stock

exchange that reflects present day market condition. Since it is not possible to compare

all the 30 scrip’s in the index with all Mutual Fund Schemes due to time and resource

constraints, sampling techniques were considered. Randomly selected samples will

facilitate inference of the population, in our case BSE Sensex and mutual fund industry in

India. Hence by stratified random sampling 5 scrip’s out of 30 Sensex and 5 mutual fund

schemes out of whole mutual fund industry were selected.

The initial examination of the composition of index revealed that it is composed

of primarily two types of industries: manufacturing and services in the ratio of 3 : 2. there

for to give correct picture appropriate weight was assigned to manufacturing industries

and hence three scrip’s from manufacturing and two from service industries were

randomly selected and in case of mutual funds it consists basically large cap, mid cap,

small cap, sectoreal funds and contra funds there fore one fund from each area were

selected.

Monthly share price and unit prices of the selected scrip’s and units were

collected from historical data. In order to avoid bias, at least three years monthly data was

decided to be necessary. The reference period is from 1st Apr, 2003 to 31st Mar, 2006.

Sampling technique:

The quality of research output and the validity of its findings depend upon

appropriateness of the sampling design selected for the study. It was needed to apply

inferential statistical analysis, hence probability sampling was chosen to be essential.

Criteria for Selecting Sampling Techniques

It is intended to generalize the finding based on the sample examination to the

population, therefore, probability sampling adopted in order to have a

representative sample. Since the population is heterogeneous stratified random

sampling was taken.

Probability sampling produces high degree of precision compared to non probability sampling.

Sample Design :

1. Relative population – 30 BSE sensitivity index companies and mutual fund

industry in India.

2. Sampling frame – list of population, elements from which sample is drawn (see

the annexure).

3. Method of sampling – stratified random sampling. Stratification or division of

population into homogeneous group was done on the basis of industry.

4. Variables – monthly calculated risk and returns were used for comparing equity

and mutual fund schemes.

Sample size:

Five company’s equity shares and five mutual fund schemes were selected.

Sample Description:

EQUITIES BENCHMARK ACC LIMITED BSE SENSEX

BAJAJ AUTO LIMITED BSE SENSEX

BHEL BSE SENSEX

ICICI BANK LIMITED BSE SENSEX

SATYAM COMPUTER SERVICES LIMITED BSE SENSEX

CALCULATION OF RETURN AND RISK OF SELECTED MUTUAL FUND SCHEMES AND THEIR BENCH MARKS

RISK AND RETURN OF BENCH MARKS

1. BSE SENSEX:

MUTUAL FUNDS BENCHMARK

RELIANCE MUTUAL FUND BSE SENSEXFRANKLIN INDIA PRIMA FUND BSE 100SUNDARAM SMILE FUND BSE 500PRUDENTIAL ICICI MUTUAL FUND BSE 100SBI MUTUAL FUND BSE 100

Calculation of Return and Standard Deviation

Date SENSEX Return in % R-R1 (R-R1)230-03-07 3048.7230-04-07 2959.79 -2.92 -6.83 46.6531-05-07 3180.75 7.47 3.56 12.6730-06-07 3607.13 13.41 9.50 90.2531-07-07 3792.61 5.14 1.23 1.5129-08-07 4244.73 11.92 8.01 64.1630-09-07 4453.24 4.91 1.00 1.0030-10-07 4906.87 10.19 6.28 39.4430-11-07 5044.82 2.81 -1.10 1.2130-12-07 5838.96 15.74 11.83 139.9530-01-08 5695.67 -2.45 -6.36 40.4530-02-08 5667.51 -0.49 -4.40 19.3630-03-08 5590.6 -1.36 -5.27 27.7730-04-08 5655.09 1.15 -2.76 7.6230-05-08 4759.62 -15.83 -19.74 389.6730-06-08 4795.46 0.75 -3.16 9.9930-07-08 5170.32 7.82 3.91 15.2930-08-08 5192.08 0.42 -3.49 12.1830-09-08 5583.61 7.54 3.63 13.1830-10-08 5672.27 1.59 -2.32 5.3830-11-08 6234.29 9.91 6.00 36.0030-12-08 6602.69 5.91 2.00 4.0030-01-09 6555.94 -0.71 -4.62 21.3430-02-09 6713.86 2.41 -1.50 2.2530-03-09 6492.82 -3.29 -7.20 51.8430-04-09 6154.44 -5.21 -9.12 83.1730-05-09 6715.11 9.11 5.20 27.0430-06-09 7193.85 7.13 3.22 10.3730-07-09 7635.42 6.14 2.23 4.9730-08-09 7805.43 2.23 -1.68 2.8230-09-09 8634.48 10.62 6.71 45.0230-10-09 7892.32 -8.6 -12.51 156.5030-11-09 8788.81 11.36 7.45 55.5030-12-09 9397.93 6.93 3.02 9.1230-01-10 9919.89 5.55 1.64 2.6928-02-10 10370.2 4.54 0.63 0.4031-03-10 11280 8.77 4.86 23.62Total 140.6 1474.39

Bench Mark Return and Risk (BSE Sensex)

Return = (P1 /P0 *100)-100

Where, P1 = Current month price,

P0 = Previous month price R1 = ΣR/n,

where n=number of months.

R1 = 140.60/36 =3.9

SD = √ Σ(R- R1)2 /n

=√1474.39/36SD = 6.4

2. BSE 100: Calculation of Return and Standard Deviation

Date BSE100 Return in % R-R1 (R-R1)230-03-07 1716.2830-04-07 1671.63 -2.60 -6.32 39.96 31-05-07 1641.44 -1.81 -5.53 30.54 30-06-07 1819.36 10.84 7.12 50.68 31-07-07 1893.45 4.07 0.35 0.12 29-08-07 2229.25 17.73 14.01 196.42 30-09-07 2314.62 3.83 0.11 0.01 30-10-07 2485.43 7.38 3.66 13.39 30-11-07 2594.94 4.41 0.69 0.47 30-12-07 3074.87 18.49 14.77 218.30 30-01-08 2946.14 -4.19 -7.91 62.51 30-02-08 2923.99 -0.75 -4.47 20.00 30-03-08 2966.31 1.45 -2.27 5.16 30-04-08 3025.14 1.98 -1.74 3.02 30-05-08 2525.35 -16.52 -20.24 409.71 30-06-08 2561.16 1.42 -2.30 5.30 30-07-08 2755.22 7.58 3.86 14.88 30-08-08 2789.07 1.23 -2.49 6.21 30-09-08 2997.97 7.49 3.77 14.21 30-10-08 3027.96 1.00 -2.72 7.40 30-11-08 3231.25 6.71 2.99 8.96 30-12-08 3456.54 6.97 3.25 10.58 30-01-09 3521.71 1.89 -1.83 3.37 30-02-09 3611.9 2.56 -1.16 1.34 30-03-09 3481.88 -3.60 -7.32 53.58 30-04-09 3313.45 -4.84 -8.56 73.23 30-05-09 3601.73 8.70 4.98 24.80 30-06-09 3800.24 5.51 1.79 3.21 30-07-09 4072.15 7.16 3.44 11.80 30-08-09 4184.83 2.77 -0.95 0.91

30-09-09 4566.63 9.12 5.40 29.20 30-10-09 4159.59 -8.91 -12.63 159.60 30-11-09 4849.87 16.59 12.87 165.76 30-12-09 4953.28 2.13 -1.59 2.52 30-01-10 5254.97 6.09 2.37 5.62 28-02-10 5422.67 3.19 -0.53 0.2831-03-10 5904.17 8.88 5.16 26.62Total 133.96 1679.66

Bench Mark Return and Risk (BSE 100)

Return = (P1 /P0 *100)-100 Where, P1 = Current month price, P0 = Previous month price

R1 = ΣR/n,

Where n=number of months.

R1 = 133.96/36

= 3.72

SD = √ Σ(R- R1)2 /n

= √1679.66/36

SD = 6.833. BSE 500:

Calculation of Return and Standard Deviation

Date BSE500 Return in % R-R1 (R-R1)230-03-07 1164.6830-04-07 1182.01 1.49 -2.60 6.7731-05-07 1235.78 4.55 0.46 0.2130-06-07 1373.56 11.15 7.06 49.8331-07-07 1439.3 4.79 0.70 0.4829-08-07 1687.35 17.23 13.14 172.7730-09-07 1748.43 3.62 -0.47 0.22 30-10-07 1877.14 7.36 3.27 10.70 30-11-07 1991.74 6.11 2.02 4.06 30-12-07 2366.36 18.81 14.72 216.64

30-01-08 2246.83 -5.05 -9.14 83.56 30-02-08 2228.41 -0.82 -4.91 24.11 30-03-08 2243.6 0.68 -3.41 11.62 30-04-08 2321.25 3.46 -0.63 0.40 30-05-08 1891.75 -18.50 -22.59 510.44 30-06-08 1923.78 1.69 -2.40 5.74 30-07-08 2081.26 8.19 4.10 16.78 30-08-08 2125.65 2.13 -1.96 3.83 30-09-08 2276.87 7.11 3.02 9.14 30-10-08 2319.3 1.86 -2.23 4.96 30-11-08 2518.67 8.60 4.51 20.31 30-12-08 2634.51 4.60 0.51 0.26 30-01-09 2726.49 3.49 -0.60 0.36 30-02-09 2825.65 3.64 -0.45 0.21 30-03-09 2434.66 -13.84 -17.93 321.38 30-04-09 2610.5 7.22 3.13 9.81 30-05-09 2829.2 8.38 4.29 18.38 30-06-09 2928.31 3.50 -0.59 0.34 30-07-09 3124.78 6.71 2.62 6.86 30-08-09 3273 4.74 0.65 0.43 30-09-09 3521.83 7.60 3.51 12.34 30-10-09 3198.69 -9.18 -13.27 175.97 30-11-09 3568.37 11.56 7.47 55.76 30-12-09 3795.96 6.38 2.29 5.23 30-01-10 4004.96 5.51 1.42 2.0028-02-10 4130.07 3.12 -0.97 0.9331-03-10 4516.73 9.36 5.27 27.79Total 147.26 1790.64

Bench Mark Return and Risk (BSE 500)

Return = (P1 /P0 *100)-100

Where, P1 = Current month price, P0 = Previous month price

X1 = ΣR/n,

Where,n=number of months.

R1 = 147.26/36 = 4.09 SD = √ Σ(R- R1)2 /n

= √1790.64/36

SD = 7.05

1. Reliance Vision Fund:-

Reliance Vision Fund is large cap open ended growth fund. Its objective is to

achieve long term growth of capital through a research based investment approach.

Monthly risk and return from 30th Apr 2003 to 31st Mar 2006 is calculated below.

Return=P1 /P0 *100

Where, P1 = Current month price, P0 = Previous month price

R1 = ΣR/n, = 190.14/36, = 5.28

Where n=number of months.

SD = √ Σ(R- R1)2 /n,

= √1704.71/36

SD = 6.88

Calculation of Beta

B = [Σ(Ra –Ra1)(Rm-Rm1)]/ Σ(Rm-Rm1)2

Where Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market

=1424.07/1474.39

B = 0.96

Calculation of Alpha

Alpha = (Ra1 - Rm1)*B =(5.16-3.9)*0.96 =1.2

CALCULATION OF RISK AND RETURNDate Net Asset Value Return in %(R) R - R1 (R- R1)2

30-03-07 27.66 ------ ----- ----

30-04-07 27.86 4.85 -0.43 0.18 31-05-07 31.45 13.7 8.42 70.89 30-06-07 34.70 10.03 4.75 22.56 31-07-07 37.58 8.29 3.01 9.06 29-08-07 43.31 16.39 11.11 123.43 30-09-07 48.11 9.99 4.71 22.18 30-10-07 53.04 10.24 4.96 24.6 30-11-07 57.89 9.14 3.86 14.89 30-12-07 68.51 18.34 13.06 170.56 30-01-08 63.69 -7.03 -12.31 151.53 30-02-08 65.39 2.66 -2.62 6.86 30-03-08 63.11 -3.48 -8.76 76.73 30-04-08 65.34 3.53 -1.8 3.24 30-05-08 54.44 -16.68 -21.96 482.24 30-06-08 56.26 3.34 -1.94 3.76 30-07-08 60.9 8.24 2.96 8.76 30-08-08 63.94 4.99 -1.04 1.08 30-09-08 68.7 7.44 2.16 4.66 30-10-08 69.11 1.45 -3.83 14.66 30-11-08 74.76 7.25 1.97 3.88 30-12-08 82.08 9.79 4.51 20.34 30-01-09 83.14 1.6 -3.68 13.54 30-02-09 90.19 8.14 2.86 8.17 30-03-09 86.7 -3.86 -9.14 83.53 30-04-09 86.10 -0.69 5.97 35.64 30-05-09 91.64 6.43 1.15 1.32 30-06-09 91.49 -0.16 -5.44 29.59 30-07-09 99.74 9.01 3.73 13.91 30-08-09 104.82 5.09 -0.19 0.03 30-09-09 114.32 9.06 3.78 14.28 30-10-09 105.35 -7.84 13.12 172.13 30-11-09 118.05 12.05 6.77 45.83 30-12-09 125.97 6.7 1.42 2.01 30-01-10 134.38 6.67 1.39 1.9328-02-10 139.26 3.63 -1.92 3.6831-03-10 155.75 11.84 6.65 43.03Total 190.14 1704.71

CALCULATION OF BETA:

DATE Return of Company

Return of market

Ra-Ra1 Rm-Rm1 [(Ra-Ra1)(Rm-Rm1)]

(Rm-Rm1)2

30-03-0730-04-07 0.72 -2.92 -4.44 -6.83 30.33 46.6531-05-07 12.89 7.47 7.73 3.56 27.52 12.6730-06-07 10.33 13.41 5.17 9.5 49.12 90.2531-07-07 8.3 5.14 3.14 1.23 3.86 1.5129-08-07 15.25 11.92 10.09 8.01 80.82 64.1630-09-07 11.08 4.91 5.92 1 5.92 1.0030-10-07 10.25 10.19 5.09 6.28 31.97 39.44

30-11-07 9.14 2.81 3.98 -1.1 -4.38 1.2130-12-07 18.35 15.74 13.19 11.83 156.04 139.9530-01-08 -7.04 -2.45 -12.2 -6.36 77.59 40.4530-02-08 2.67 -0.49 -2.49 -4.4 10.96 19.3630-03-08 -3.49 -1.36 -8.65 -5.27 45.59 27.77 30-04-08 3.53 1.15 -1.63 -2.76 4.50 7.6230-05-08 -16.68 -15.83 -21.84 -19.74 431.12 389.6730-06-08 3.34 0.75 -1.82 -3.16 5.75 9.9930-07-08 8.25 7.82 3.09 3.91 12.08 15.2930-08-08 4.99 0.42 -0.17 -3.49 0.59 12.1830-09-08 7.44 7.54 2.28 3.63 8.28 13.1830-10-08 0.6 1.59 -4.56 -2.32 10.58 5.3830-11-08 8.18 9.91 3.02 6 18.12 36.0030-12-08 9.79 5.91 4.63 2 9.26 4.0030-01-09 1.29 -0.71 -3.87 -4.62 17.88 21.3430-02-09 8.48 2.41 3.32 -1.5 -4.98 2.2530-03-09 -3.87 -3.29 -9.03 -7.2 65.02 51.8430-04-09 -0.69 -5.21 -5.85 -9.12 53.35 83.1730-05-09 6.43 9.11 1.27 5.2 6.60 27.0430-06-09 -0.16 7.13 -5.32 3.22 -17.13 10.3730-07-09 9.02 6.14 3.86 2.23 8.61 4.9730-08-09 5.09 2.23 -0.07 -1.68 0.12 2.8230-09-09 9.06 10.62 3.9 6.71 26.17 45.0230-10-09 -7.85 -8.6 -13.01 -12.51 162.76 156.5030-11-09 12.06 11.36 6.9 7.45 51.41 55.5030-12-09 6.71 6.93 1.55 3.02 4.68 9.1230-01-10 6.68 5.55 1.52 1.64 2.49 2.6928-02-10 3.63 4.54 -1.53 0.63 -0.96 0.4031-03-10 11.84 8.77 6.68 4.86 32.46 23.62Total 185.61 140.61 1424.07 1474.39

2. Franklin India Prima Fund:-

Franklin India Prima Fund is mid cap open ended growth fund. Its objective is

to achieve long term growth of capital through a research based investment approach.


Return = (P1 /P0 *100) – 100Where, P1 = Current month price, P0 = Previous month price

R1 = ΣR/n,Where n=number of months.

R1 = 201.9/36 = 5.6

SD = √ Σ(R- R1)2 /n = √1669.164/36

SD = 6.8

Calculation of Beta B = [Σ(Ra –Ra1)(Rm-Rm1)]/ Σ(Rm-Rm1)2


= 375.48/1679.2

B = 0.22


Alpha = (Ra1-Rm1)*B = (5.64-3.72)*0.22 =0.42

Calculation of Risk and Return

Date NAV Return in % R-R1 (R-R1)230-03-07 29.3330-04-07 30.55 4.15 -1.45 2.131-05-07 37.23 21.86 16.26 264.3830-06-07 41.14 10.5 4.9 24.0131-07-07 45.70 11.08 5.48 30.0329-08-07 49.05 7.33 1.73 2.9930-09-07 52.04 6.09 0.49 0.2430-10-07 56.93 9.39 3.79 14.3630-11-07 64.97 14.12 8.52 72.5930-12-07 80.59 24.04 18.44 340.0330-01-08 73.49 -8.81 -14.41 207.6430-02-08 72.14 -1.83 -7.43 55.230-03-08 72.43 0.04 -5.56 30.9130-04-08 71.86 -0.78 -6.38 40.730-05-08 78.32 8.98 3.38 11.4230-06-08 79.04 0.09 -5.51 30.3630-07-08 75.49 -4.49 -10.09 101.830-08-08 81.64 8.14 2.54 6.4530-09-08 84.73 3.78 -1.82 3.31

30-10-08 88.06 3.93 -1.67 2.7830-11-08 97.23 10.41 4.81 23.1330-12-08 109.93 13.06 7.46 55.6530-01-09 108.91 -0.92 -6.52 42.5130-02-09 117.09 7.51 1.91 3.6430-03-09 113.63 -2.95 -8.55 73.130-04-09 118.08 3.91 -1.69 2.8530-05-09 124.54 5.47 -0.13 0.0130-06-09 122.89 -1.32 -6.92 47.8830-07-09 126.52 2.95 -2.65 7.0230-08-09 127.9 1.09 -4.51 20.3430-09-09 130.06 1.68 -3.92 15.3630-10-09 149.4 14.87 9.27 85.9330-11-09 164.69 10.23 4.63 21.4330-12-09 174.03 5.67 0.07 0.00430-01-10 180.17 3.52 -2.08 4.3228-02-10 182.34 1.2 -4.4 19.3631-03-10 196.88 7.91 2.31 5.33Total 201.9 1669.164

Calculation of Beta:


Return of market


(Rm-Rm1)2

30-03-0730-04-07 4.16 -2.6 -1 -6.32 6.32 39.9431-05-07 21.87 -1.81 16.71 -5.53 -92.41 30.5830-06-07 10.5 10.84 5.34 7.12 38.02 50.6931-07-07 11.08 4.07 5.92 0.35 2.07 0.1229-08-07 7.33 17.73 2.17 14.01 30.40 196.2830-09-07 6.1 3.83 0.94 0.11 0.10 0.0130-10-07 9.4 7.38 4.24 3.66 15.52 13.4030-11-07 14.12 4.41 8.96 0.69 6.18 0.4830-12-07 24.04 18.49 18.88 14.77 278.86 218.1530-01-08 -8.81 -4.19 -13.97 -7.91 110.50 62.57 30-02-08 -1.84 -0.75 -7 -4.47 31.29 19.9830-03-08 0.4 1.45 -4.76 -2.27 10.81 5.1530-04-08 -0.79 1.98 -5.95 -1.74 10.35 3.0330-05-08 8.99 -16.52 3.83 -20.24 -77.52 409.6630-06-08 0.92 1.42 -4.24 -2.3 9.75 5.2930-07-08 -4.49 7.58 -9.65 3.86 -37.25 14.9030-08-08 8.15 1.23 2.99 -2.49 -7.45 6.2030-09-08 3.78 7.49 -1.38 3.77 -5.20 14.2130-10-08 3.93 1 -1.23 -2.72 3.35 7.4030-11-08 10.41 6.71 5.25 2.99 15.70 8.94

30-12-08 13.06 6.97 7.9 3.25 25.68 10.5630-01-09 -0.93 1.89 -6.09 -1.83 11.14 3.3530-02-09 7.51 2.56 2.35 -1.16 -2.73 1.3530-03-09 -2.95 -3.6 -8.11 -7.32 59.37 53.5830-04-09 3.92 -4.84 -1.24 -8.56 10.61 73.2730-05-09 5.47 8.7 0.31 4.98 1.54 24.8030-06-09 -1.32 5.51 -6.48 1.79 -11.60 3.2030-07-09 2.95 7.16 -2.21 3.44 -7.60 11.8330-08-09 1.09 2.77 -4.07 -0.95 3.87 0.9030-09-09 1.69 9.12 -3.47 5.4 -18.74 29.1630-10-09 14.87 -8.91 9.71 -12.63 -122.64 159.5230-11-09 10.23 16.59 5.07 12.87 65.25 165.6430-12-09 5.67 2.13 0.51 -1.59 -0.81 2.5330-01-10 3.53 6.09 -1.63 2.37 -3.86 5.6228-02-10 1.2 3.19 -3.96 -0.53 2.10 0.2831-03-10 7.97 8.88 2.81 5.16 14.50 26.63Total 203.23 133.96 375.48 1679.20

3. Prudential ICICI FMCG Plan

Prudential ICICI FMCG Plan is sector open ended growth fund. Its objective is

to achieve long term growth of capital through a research based investment approach.


Return=(P1 /P0 *100) - 100 Where, P1 = Current month price, P0 = Previous month price

R1 = ΣR/n, where n=number of months.R1 = 178.5/36 = 4.96

SD = √ Σ(R- R1)2 /n = √1567.54/36SD = 6.6

Calculation of BetaB = [Σ(Ra –Ra1)(Rm-Rm1)]/ Σ(Rm-Rm1)2 Where Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market = 1102.22/1679.2

B = 0.65

Calculation of AlphaAlpha = (Ra1-Rm1)*B = (4.96-3.72)*0.65 =0.80

Calculation of Return and RiskDate NAV Return in % R-R1 (R-R1)2

30-03-07 7.4330-04-07 7.48 0.67 -4.49 20.13 31-05-07 8.28 10.70 5.54 30.64 30-06-07 9.05 9.30 4.14 17.14 31-07-07 9.36 3.43 -1.73 3.01 29-08-07 10.23 9.29 4.13 17.10 30-09-07 10.11 -1.17 -6.33 40.11 30-10-07 10.31 1.98 -3.18 10.12 30-11-07 11.03 6.98 1.82 3.33 30-12-07 12.85 16.50 11.34 128.61 30-01-08 12.04 -6.30 -11.46 131.41 30-02-08 11.88 -1.33 -6.49 42.11 30-03-08 11.13 -6.31 -11.47 131.63 30-04-08 12.06 8.36 3.20 10.21 30-05-08 10.92 -9.45 -14.61 213.53 30-06-08 11.11 1.74 -3.42 11.70 30-07-08 11.73 5.58 0.42 0.18 30-08-08 12.72 8.44 3.28 10.76 30-09-08 13.16 3.46 -1.70 2.89 30-10-08 12.87 -2.20 -7.36 54.22 30-11-08 15.18 17.95 12.79 163.55 30-12-08 16.72 10.14 4.98 24.85 30-01-09 17.34 3.71 -1.45 2.11 30-02-09 17.52 1.04 -4.12 16.99 30-03-09 18.06 3.08 -2.08 4.32 30-04-09 18.85 4.37 -0.79 0.62 30-05-09 20.85 10.61 5.45 29.70 30-06-09 21.48 3.02 -2.14 4.57 30-07-09 24.21 12.71 7.55 56.99 30-08-09 27.87 15.12 9.96 99.16

30-09-09 29.72 6.64 1.48 2.18 30-10-09 27.04 -9.02 -14.18 201.00 30-11-09 29.96 10.80 5.64 31.80 30-12-09 32.48 8.41 3.25 10.57 30-01-10 34.11 5.02 -0.14 0.0228-02-10 35.43 3.87 -1.29 1.6631-03-10 39.46 11.37 6.21 38.62Total 178.50 1567.54

Calculation of Beta:DATE Return of

CompanyReturn of

marketRa-Ra1 Rm-Rm1 [(Ra-Ra1)

(Rm-Rm1)](Rm-

Rm1)230-03-0730-04-07 0.67 -2.6 -4.49 -6.32 28.38 39.9431-05-07 10.7 -1.81 5.54 -5.53 -30.64 30.5830-06-07 9.3 10.84 4.14 7.12 29.48 50.6931-07-07 3.43 4.07 -1.73 0.35 -0.61 0.1229-08-07 9.29 17.73 4.13 14.01 57.86 196.2830-09-07 -1.17 3.83 -6.33 0.11 -0.70 0.0130-10-07 1.98 7.38 -3.18 3.66 -11.64 13.4030-11-07 6.98 4.41 1.82 0.69 1.26 0.4830-12-07 16.5 18.49 11.34 14.77 167.49 218.1530-01-08 -6.3 -4.19 -11.46 -7.91 90.65 62.57 30-02-08 -1.33 -0.75 -6.49 -4.47 29.01 19.9830-03-08 -6.31 1.45 -11.47 -2.27 26.04 5.1530-04-08 8.36 1.98 3.2 -1.74 -5.57 3.0330-05-08 -9.45 -16.52 -14.61 -20.24 295.71 409.6630-06-08 1.74 1.42 -3.42 -2.3 7.87 5.2930-07-08 5.58 7.58 0.42 3.86 1.62 14.9030-08-08 8.44 1.23 3.28 -2.49 -8.17 6.2030-09-08 3.46 7.49 -1.7 3.77 -6.41 14.2130-10-08 -2.2 1 -7.36 -2.72 20.02 7.4030-11-08 17.95 6.71 12.79 2.99 38.24 8.9430-12-08 10.14 6.97 4.98 3.25 16.19 10.5630-01-09 3.71 1.89 -1.45 -1.83 2.65 3.3530-02-09 1.04 2.56 -4.12 -1.16 4.78 1.3530-03-09 3.08 -3.6 -2.08 -7.32 15.23 53.5830-04-09 4.37 -4.84 -0.79 -8.56 6.76 73.2730-05-09 10.61 8.7 5.45 4.98 27.14 24.8030-06-09 3.02 5.51 -2.14 1.79 -3.83 3.2030-07-09 12.71 7.16 7.55 3.44 25.97 11.8330-08-09 15.12 2.77 9.96 -0.95 -9.46 0.9030-09-09 6.64 9.12 1.48 5.4 7.99 29.1630-10-09 -9.02 -8.91 -14.18 -12.63 179.09 159.5230-11-09 10.8 16.59 5.64 12.87 72.59 165.6430-12-09 8.41 2.13 3.25 -1.59 -5.17 2.5330-01-10 5.02 6.09 -0.14 2.37 -0.33 5.62

28-02-10 3.87 3.19 -1.29 -0.53 0.68 0.2831-03-10 11.37 8.88 6.21 5.16 32.04 26.63Total 178.5 133.96 1102.22 1679.20

4. Sundaram S.M.I.L.E. Fund

Sundaram S.M.I.L.E. Fund is Mid cap open ended growth fund. Its objective is

to achieve capital appreciation by investing in diversified stocks that are generally

termed as 'Small and Midcaps' and by investing in other equities. Monthly risk and

return from 28th Feb 2005 to 31st Mar 2006 is calculated below.

Return = (P1 /P0 *100)-100Where, P1 = Current month price, P0 = Previous month price

R1 = ΣR/n, where n=number of months.R1 = -3.31/14 = -0.23

SD= √ Σ(R- R1)2 /n = √873.52/14SD= 7.89

Calculation of BetaB = [Σ(Ra –Ra1)(Rm-Rm1)]/ Σ(Rm-Rm1)2


= 415/637.71B = 0.65

Calculation of AlphaAlpha = (Ra1-Rm1)*B = (-0.23-4.09)*0.65 = -2.8

Calculation of Beta

5. SBI MSFU CONTRA

Calculation of Return and RiskDate NAV Return in % R-R1 (R-R1)2

30-01-09 11.0130-02-09 10.19 -7.45 -7.23 52.24 30-03-09 10.07 -1.18 -0.96 0.92 30-04-09 10.14 0.70 0.92 0.84 30-05-09 11 8.48 8.70 75.71 30-06-09 11.23 2.09 2.31 5.34 30-07-09 12.21 8.73 8.95 80.04 30-08-09 13.19 8.03 8.25 68.00 30-09-09 13.5 2.35 2.57 6.61 30-10-09 10.21 -24.37 -24.15 583.24 30-11-09 10.13 -0.78 -0.56 0.32 30-12-09 10.12 -0.10 0.12 0.01 30-01-10 10.13 0.10 0.32 0.1028-02-10 10.14 0.10 0.32 0.1031-03-10 10.14 0.00 0.22 0.05Total -3.31 873.52


Return of market


(Rm-Rm1)2

27-02-09 -7.45 3.64 -7.23 -0.45 3.25 0.2030-03-09 -1.18 -13.84 -0.96 -17.93 17.21 321.4830-04-09 0.7 7.22 0.92 3.13 2.88 9.8030-05-09 8.48 8.38 8.7 4.29 37.32 18.4030-06-09 2.09 3.5 2.31 -0.59 -1.36 0.3530-07-09 8.73 6.71 8.95 2.62 23.45 6.8630-08-09 8.03 4.74 8.25 0.65 5.36 0.4230-09-09 2.35 7.6 2.57 3.51 9.02 12.3230-10-09 -24.37 -9.18 -24.15 -13.27 320.47 176.0930-11-09 -0.78 11.56 -0.56 7.47 -4.18 55.8030-12-09 -0.10 6.38 0.12 2.29 0.27 5.2430-01-10 0.10 5.51 0.32 1.42 0.45 2.0228-02-10 0.10 3.12 0.32 -0.97 -0.31 0.9431-03-10 0.00 9.36 0.22 5.27 1.16 27.77Total -3.33 147.26 415.00 637.71

SBI MSFU CONTRA is open ended growth fund. Its objective is to achieve

capital appreciation by investing in diversified stocks. Monthly risk and return from

31st May 2005 to 31st Mar 2006 is calculated below.

Return=P1 /P0 *100 Where, P1 = Current month price, P0 = Previous month priceR1 = ΣR/n, where n=number of months.X1 = 70.64/11 = 6.42SD = √ Σ(R- R1)2 /n = √337/11SD = 5.53

Calculation of BetaB = [Σ(Ra –Ra1)(Rm-Rm1)]/ Σ(Rm-Rm1)2 Where Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market = -67.35/677.99B = -0.09


Alpha = (Ra1-Rm1)*B = (6.42-5.57)*-0.09 = 0.76

Calculation of Return and RiskDate Net Asset Value Return in % R -R1 (R - R1)2

30-04-09 16.52 30-05-09 17.16 3.87 -2.55 6.48 30-06-09 17.66 2.91 -3.51 12.29 30-07-09 19.87 12.51 6.09 37.14 30-08-09 21.91 10.27 3.85 14.80 30-09-09 23.04 5.16 -1.26 1.59 30-10-09 21.53 -6.55 -12.97 168.32 30-11-09 24.1 11.94 5.52 30.44 30-12-09 24.92 3.40 -3.02 9.11 30-01-10 27.08 8.67 2.25 5.0528-02-10 28.43 4.99 -1.43 2.0631-03-10 32.26 13.47 7.05 49.73Total 70.64 337.00

Calculation of Beta

*****

Date Return of company

Return of market

Ra-Ra1 Rm-Rm1 [(Ra-Ra1) (Rm-Rm1)]

(Rm-Rm1)2

30-05-09 3.87 -2.55 8.7 -8.12 -70.64 65.9330-06-09 2.91 -3.51 5.51 -9.08 -50.03 82.4530-07-09 12.51 6.09 7.16 0.52 3.72 0.2730-08-09 10.27 3.85 2.77 -1.72 -4.76 2.9630-09-09 5.16 -1.26 9.12 -6.83 -62.29 46.6530-10-09 -6.55 -12.97 -8.91 -18.54 165.19 343.7330-11-09 11.94 5.52 16.59 -0.05 -0.83 0.0030-12-09 3.4 -3.02 2.13 -8.59 -18.30 73.7930-01-10 8.67 2.25 6.09 -3.32 -20.22 11.0228-02-10 4.99 -1.43 3.19 -7.00 -22.33 49.0031-03-10 13.47 7.05 8.88 1.48 13.14 2.19

Total 70.64 61.23 -67.35 677.99

Chapter 4

Is concerned with the analysis

and interpretation of data

Table1.1:

AVERAGE RISK OF SELECTED MUTUAL FUND SCHEMES

Mutual Fund Schemes Risk Beta Alpha

RELIANCE VISION FUND 6.9 0.96 1.2

FRANKLIN INDIA PRIMA FUND 6.8 0.22 0.42

PRU ICICI FMCG SECTOR FUND 6.6 0.65 0.8

SUNDARAM SMILE FUND 7.89 0.65 -2.8

SBI CONTRA FUND 5.53 -0.09 0.76

Total 33.72

Bench Mark 6.4

Average risk = 33.72/5 = 6.74

Chart 1.1:

ANALYSIS:

Sundaram SMILE fund has the highest risk factor of 7.89% with 0.65% beta

and -2.8% of alpha.

SBI Contra Fund has the lowest risk factor of 5.53% with -0.09% of beta and

0.76% of alpha.

Bench Mark has the risk factor of 6.4%

On an average Mutual Fund Schemes have the risk factor of 6.74%

INTERPETATION:

Risk is a major factor influence all type of investors. In the above selected

Mutual Fund Schemes average risk factor is 6.74% even though the risk factor of

bench mark is 6.4%, it is very close to average risk. It is showing Mutual Funds are

also risky.

Table1.2

AVERAGE RETURN OF SELECTED MUTUAL FUND SCHEMES

Mutual Fund Schemes Return

RELIANCE VISION FUND 5.16

FRANKLIN INDIA PRIMA FUND 5.64

PRU ICICI FMCG SECTOR FUND 4.96

SUNDARAM SMILE FUND -0.23

SBI CONTRA FUND 6.42

Total 21.95

Bench Mark 3.9

Average Return = 21.95/5 = 4.39 Chart 1.2

ANALYSIS:

SBI Contra Fund has got the highest return of 6.42%. Sundaram SMILE fund got the negative return of -0.23%. Bench Mark return is 3.9%. On an average Mutual Fund Schemes have got 4.39% per month.

INTERPETATION:

Return is a major factor influencing factor to all type of investors. In the above selected Mutual Fund Schemes average return is 4.39%, compared to bench mark return mutual fund returns are good and it will attract more and more customers.

CALCULATION OF RETURN AND RISK OF SELECTED COMPANIES

Calculation of Return and Risk of Bench Mark(BSE SENSEX)

Date SENSEX Return in % R-R1 (R-R1)230-03-07 3048.7230-04-07 2959.79 -2.92 -6.83 46.6531-05-07 3180.75 7.47 3.56 12.6730-06-07 3607.13 13.41 9.50 90.2531-07-07 3792.61 5.14 1.23 1.5129-08-07 4244.73 11.92 8.01 64.1630-09-07 4453.24 4.91 1.00 1.0030-10-07 4906.87 10.19 6.28 39.4430-11-07 5044.82 2.81 -1.10 1.2130-12-07 5838.96 15.74 11.83 139.9530-01-08 5695.67 -2.45 -6.36 40.45

30-02-08 5667.51 -0.49 -4.40 19.3630-03-08 5590.6 -1.36 -5.27 27.7730-04-08 5655.09 1.15 -2.76 7.6230-05-08 4759.62 -15.83 -19.74 389.6730-06-08 4795.46 0.75 -3.16 9.9930-07-08 5170.32 7.82 3.91 15.2930-08-08 5192.08 0.42 -3.49 12.1830-09-08 5583.61 7.54 3.63 13.1830-10-08 5672.27 1.59 -2.32 5.3830-11-08 6234.29 9.91 6.00 36.0030-12-08 6602.69 5.91 2.00 4.0030-01-09 6555.94 -0.71 -4.62 21.3430-02-09 6713.86 2.41 -1.50 2.2530-03-09 6492.82 -3.29 -7.20 51.8430-04-09 6154.44 -5.21 -9.12 83.1730-05-09 6715.11 9.11 5.20 27.0430-06-09 7193.85 7.13 3.22 10.3730-07-09 7635.42 6.14 2.23 4.9730-08-09 7805.43 2.23 -1.68 2.8230-09-09 8634.48 10.62 6.71 45.0230-10-09 7892.32 -8.6 -12.51 156.5030-11-09 8788.81 11.36 7.45 55.5030-12-09 9397.93 6.93 3.02 9.1230-01-10 9919.89 5.55 1.64 2.6928-02-10 10370.2 4.54 0.63 0.4031-03-10 11280 8.77 4.86 23.62Total 140.6 1474.39

Return = (P1 /P0 *100)-100 Where, P1 = Current month price,

P0 = Previous month priceR1 = ΣR/n, where n=number of months.R1 = 140.60/36 =3.9

SD = √ Σ(R- R1)2 /n = √1474.39/36SD = 6.4

1. ACC Limited:-

Calculation of Return and Risk

Date Scrip Value Return in % R-R1 (R-R1)230-03-07 13730-04-07 128.1 -6.50 -10.22 104.3731-05-07 136.9 6.87 3.15 9.9230-06-07 169.1 23.52 19.80 392.0731-07-07 174.8 3.37 -0.35 0.1229-08-07 219 25.29 21.57 465.0930-09-07 186.5 -14.84 -18.56 344.4830-10-07 207.1 11.05 7.33 53.6630-11-07 222.2 7.29 3.57 12.7530-12-07 252.4 13.59 9.87 97.4430-01-08 271 7.37 3.65 13.3230-02-08 261 -3.69 -7.41 54.9130-03-08 255.25 -2.20 -5.92 35.0830-04-08 276 8.13 4.41 19.4430-05-08 247 -10.51 -14.23 202.4130-06-08 232.9 -5.71 -9.43 88.9030-07-08 236 1.33 -2.39 5.7130-08-08 263 11.44 7.72 59.6130-09-08 267.3 1.63 -2.09 4.3530-10-08 263.5 -1.42 -5.14 26.4430-11-08 287.65 9.17 5.45 29.6530-12-08 320.1 11.28 7.56 57.1730-01-09 352 9.97 6.25 39.0130-02-09 362.6 3.01 -0.71 0.5030-03-09 369.8 1.99 -1.73 3.0130-04-09 376 1.68 -2.04 4.1830-05-09 381.15 1.37 -2.35 5.5230-06-09 384.5 0.88 -2.84 8.0730-07-09 450 17.04 13.32 177.2930-08-09 472.45 4.99 1.27 1.6130-09-09 467.6 -1.03 -4.75 22.5330-10-09 438 -6.33 -10.05 101.0130-11-09 516.5 17.92 14.20 201.7130-12-09 537.5 4.07 0.35 0.1230-01-10 566 5.30 1.58 2.5028-02-10 597.9 5.64 1.92 3.6731-03-10 764 27.78 24.06 578.91Total 190.72 3226.54



Return of market


(Rm-Rm1)2

30-03-07 -6.5 -2.92 -10.22 -6.83 69.80 46.6530-04-07 6.87 7.47 3.15 3.56 11.21 12.6731-05-07 23.52 13.41 19.8 9.5 188.10 90.25

30-06-07 3.37 5.14 -0.35 1.23 -0.43 1.5131-07-07 25.29 11.92 21.57 8.01 172.78 64.1629-08-07 -14.84 4.91 -18.56 1 -18.56 1.0030-09-07 11.05 10.19 7.33 6.28 46.03 39.4430-10-07 7.29 2.81 3.57 -1.1 -3.93 1.2130-11-07 13.59 15.74 9.87 11.83 116.76 139.9530-12-07 7.37 -2.45 3.65 -6.36 -23.21 40.4530-01-08 -3.69 -0.49 -7.41 -4.4 32.60 19.3630-02-08 -2.2 -1.36 -5.92 -5.27 31.20 27.7730-03-08 8.13 1.15 4.41 -2.76 -12.17 7.6230-04-08 -10.51 -15.83 -14.23 -19.74 280.90 389.6730-05-08 -5.71 0.75 -9.43 -3.16 29.80 9.9930-06-08 1.33 7.82 -2.39 3.91 -9.34 15.2930-07-08 11.44 0.42 7.72 -3.49 -26.94 12.1830-08-08 1.63 7.54 -2.09 3.63 -7.59 13.1830-09-08 -1.42 1.59 -5.14 -2.32 11.92 5.3830-10-08 9.17 9.91 5.45 6 32.70 36.0030-11-08 11.28 5.91 7.56 2 15.12 4.0030-12-08 9.97 -0.71 6.25 -4.62 -28.88 21.3430-01-09 3.01 2.41 -0.71 -1.5 1.07 2.2530-02-09 1.99 -3.29 -1.73 -7.2 12.46 51.8430-03-09 1.68 -5.21 -2.04 -9.12 18.60 83.1730-04-09 1.37 9.11 -2.35 5.2 -12.22 27.0430-05-09 0.88 7.13 -2.84 3.22 -9.14 10.3730-06-09 17.04 6.14 13.32 2.23 29.70 4.9730-07-09 4.99 2.23 1.27 -1.68 -2.13 2.8230-08-09 -1.03 10.62 -4.75 6.71 -31.87 45.0230-09-09 -6.33 -8.6 -10.05 -12.51 125.73 156.5030-10-09 17.92 11.36 14.2 7.45 105.79 55.5030-11-09 4.07 6.93 0.35 3.02 1.06 9.1230-12-09 5.3 5.55 1.58 1.64 2.59 2.6930-01-10 5.64 4.54 1.92 0.63 1.21 0.4028-02-10 27.78 8.77 24.06 4.86 116.93 23.62Total 190.72 140.6 1267.64 1474.39

Return=P1 /P0 *100 Where, P1 = Current month price, P0 = Previous month price

R1 = ΣR/n, where n=number of months.R1 = 190.72/36 =5.29

SD = √ Σ(R- R1)2 /n = √3136.92/36 SD = 9.33

Calculation of Beta

B = [Σ(Ra –Ra1)(Rm-Rm1)]/ Σ(Rm-Rm1)2Where, Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market

= 1267.64/1474.39 B = 0.86


Alpha = (Ra1-Rm1)*B = (5.29-3.9)*0.86

=1.19

Table 1.3 Return and Risk of ACC LTD

Factors PercentageRisk 9.33

Return 5.29Beta 0.86

Alpha 1.19

Chart 1.3

ANALYSIS: ACC Ltd. has a risk factor of 9.33%

Its rate of return on a monthly average is 5.29%

Alpha and Beta are 1.19 and 0.86 respectively

INTERPETATION: Beta of the ACC ltd. is 0.86 which is less than one; it shows the less volatility

of scrip with respect to market. Risk of the share is 9.33% and the rate of return is

only 5.29%.

2. BAJAJ AUTO LIMITED:-


Date Scrip Value Return in % R-R1 (R-R1)230-03-07 481.130-04-07 481.2 0.23 -3.49 12.1931-05-07 485 0.58 -3.14 9.8630-06-07 576 18.76 15.04 226.2931-07-07 575 -0.17 -3.89 15.1629-08-07 705 22.61 18.89 356.7830-09-07 746.5 5.89 2.17 4.6930-10-07 863.8 15.71 11.99 143.8430-11-07 918 6.27 2.55 6.5330-12-07 1160 26.36 22.64 512.64

30-01-08 1119 -3.53 -7.25 52.6330-02-08 920 -17.78 -21.50 462.4130-03-08 876 -4.78 -8.50 72.2930-04-08 943 7.65 3.93 15.4330-05-08 879 -6.79 -10.51 110.3930-06-08 895 1.82 -1.90 3.6130-07-08 831.9 -7.05 -10.77 116.0030-08-08 909 9.27 5.55 30.7830-09-08 990 8.91 5.19 26.9530-10-08 954 -3.64 -7.36 54.1230-11-08 1020 6.92 3.20 10.2330-12-08 1127 10.49 6.77 45.8430-01-09 1050 -6.83 -10.55 111.3530-02-09 990 -5.71 -9.43 89.0130-03-09 1021 3.13 -0.59 0.3530-04-09 1080 5.78 2.06 4.2430-05-09 1243 15.09 11.37 129.3430-06-09 1310 5.39 1.67 2.7930-07-09 1325 1.15 -2.57 6.6330-08-09 1405 6.04 2.32 5.3730-09-09 1640 16.73 13.01 169.1630-10-09 1665 1.52 -2.20 4.8230-11-09 2075.5 24.65 20.93 438.2630-12-09 2064.9 -0.51 -4.23 17.9030-01-10 2229.9 7.99 4.27 18.2428-02-10 2600 16.60 12.88 165.8231-03-10 2749 5.73 2.01 4.04Total 194.47 3455.96

Calculation of Beta


Return of market


(Rm-Rm1)2

30-03-0730-04-07 0.23 -2.92 -3.49 -6.83 23.84 46.6531-05-07 0.58 7.47 -3.14 3.56 -11.18 12.6730-06-07 18.76 13.41 15.04 9.5 142.88 90.2531-07-07 -0.17 5.14 -3.89 1.23 -4.78 1.5129-08-07 22.61 11.92 18.89 8.01 151.31 64.1630-09-07 5.89 4.91 2.17 1 2.17 1.0030-10-07 15.71 10.19 11.99 6.28 75.30 39.4430-11-07 6.27 2.81 2.55 -1.1 -2.81 1.2130-12-07 26.36 15.74 22.64 11.83 267.83 139.9530-01-08 -3.53 -2.45 -7.25 -6.36 46.11 40.4530-02-08 -17.78 -0.49 -21.5 -4.4 94.60 19.3630-03-08 -4.78 -1.36 -8.5 -5.27 44.80 27.7730-04-08 7.65 1.15 3.93 -2.76 -10.85 7.62

30-05-08 -6.79 -15.83 -10.51 -19.74 207.47 389.6730-06-08 1.82 0.75 -1.9 -3.16 6.00 9.9930-07-08 -7.05 7.82 -10.77 3.91 -42.11 15.2930-08-08 9.27 0.42 5.55 -3.49 -19.37 12.1830-09-08 8.91 7.54 5.19 3.63 18.84 13.1830-10-08 -3.64 1.59 -7.36 -2.32 17.08 5.3830-11-08 6.92 9.91 3.2 6 19.20 36.0030-12-08 10.49 5.91 6.77 2 13.54 4.0030-01-09 -6.83 -0.71 -10.55 -4.62 48.74 21.3430-02-09 -5.71 2.41 -9.43 -1.5 14.15 2.2530-03-09 3.13 -3.29 -0.59 -7.2 4.25 51.8430-04-09 5.78 -5.21 2.06 -9.12 -18.79 83.1730-05-09 15.09 9.11 11.37 5.2 59.12 27.0430-06-09 5.39 7.13 1.67 3.22 5.38 10.3730-07-09 1.15 6.14 -2.57 2.23 -5.73 4.9730-08-09 6.04 2.23 2.32 -1.68 -3.90 2.8230-09-09 16.73 10.62 13.01 6.71 87.30 45.0230-10-09 1.52 -8.6 -2.2 -12.51 27.52 156.5030-11-09 24.65 11.36 20.93 7.45 155.93 55.5030-12-09 -0.51 6.93 -4.23 3.02 -12.77 9.1230-01-10 7.99 5.55 4.27 1.64 7.00 2.6928-02-10 16.6 4.54 12.88 0.63 8.11 0.4031-03-10 5.73 8.77 2.01 4.86 9.77 23.62Total 194.47 140.6 1425.94 1474.39

Return = (P1 /P0 *100) -100 Where, P1 = Current month price, P0 = Previous month price


SD = √ Σ(R- R1)2 /n = √3353.99/36SD = 9.63

Calculation of Beta

B = [Σ(Ra –Ra1)(Rm-Rm1)]/ Σ(Rm-Rm1)2 Where, Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market

= 1425.94/1474.39B = 0.96


Alpha = (Ra1-Rm1)*B = (5.4-3.9)*0.96 =1.44

Table 1.4 Return and Risk of BAJAJ AUTO LTD


Return 5.4Beta 0.96

Alpha 1.44

Chart 1.4

ANALYSIS:

Bajaj Ltd. has a risk factor of 9.63%



INTERPETATION:

Beta of the Bajaj ltd. is 0.96 which is very close to one; it shows the equal

volatility of scrip with respect to market. Risk of the share is 9.63% and the rate of

return is only 5.4%.

3. BHEL:

Calculation of Risk And Return

Date Script Value Return in % (R) R - R1 (R- R1)2

30-03-07 219.9

30-04-07 228.2 3.77 0.05 0.00

31-05-07 256 12.18 8.46 71.61

30-06-07 266 3.91 0.19 0.03

31-07-07 275.05 3.40 -0.32 0.10

29-08-07 339.7 23.50 19.78 391.44

30-09-07 365 7.45 3.73 13.90

30-10-07 428 17.26 13.54 183.34

30-11-07 430 0.47 -3.25 10.58

30-12-07 495 15.12 11.40 129.88

30-01-08 579.45 17.06 13.34 177.97

30-02-08 617.95 6.64 2.92 8.55

30-03-08 566 -8.41 -12.13 147.06

30-04-08 642 13.43 9.71 94.24

30-05-08 452 -29.60 -33.32 1109.89

30-06-08 496.45 9.83 6.11 37.38

30-07-08 549.1 10.61 6.89 47.41

30-08-08 555.25 1.12 -2.60 6.76

30-09-08 580 4.46 0.74 0.54

30-10-08 630 8.62 4.90 24.02

30-11-08 600 -4.76 -8.48 71.94

30-12-08 728.9 21.48 17.76 315.54

30-01-09 729 0.01 -3.71 13.74

30-02-09 865 18.66 14.94 223.07

30-03-09 799 -7.63 -11.35 128.82

30-04-09 815 2.00 -1.72 2.95

30-05-09 880 7.98 4.26 18.11

30-06-09 842.3 -4.28 -8.00 64.07

30-07-09 986 17.06 13.34 177.97

30-08-09 1099 11.46 7.74 59.91

30-09-09 1109 0.91 -2.81 7.90

30-10-09 1099 -0.90 -4.62 21.36

30-11-09 1434.5 30.53 26.81 718.66

30-12-09 1379 -3.87 -7.59 57.59

30-01-10 1730 25.45 21.73 472.33

28-02-10 1911 10.46 6.74 45.46

31-03-10 2162 13.13 9.41 88.63

Total 258.52 4942.75


DATE Return of company

Return of Market


(Rm-Rm1)2

30-03-07

30-04-07 3.77 -2.92 0.05 -6.83 -0.34 46.65

31-05-07 12.18 7.47 8.46 3.56 30.12 12.67

30-06-07 3.91 13.41 0.19 9.5 1.81 90.25

31-07-07 3.4 5.14 -0.32 1.23 -0.39 1.51

29-08-07 23.5 11.92 19.78 8.01 158.44 64.16

30-09-07 7.45 4.91 3.73 1 3.73 1.00

30-10-07 17.26 10.19 13.54 6.28 85.03 39.44

30-11-07 0.47 2.81 -3.25 -1.1 3.58 1.21

30-12-07 15.12 15.74 11.4 11.83 134.86 139.95

30-01-08 17.06 -2.45 13.34 -6.36 -84.84 40.45

30-02-08 6.64 -0.49 2.92 -4.4 -12.85 19.36

30-03-08 -8.41 -1.36 -12.13 -5.27 63.93 27.77

30-04-08 13.43 1.15 9.71 -2.76 -26.80 7.62

30-05-08 -29.6 -15.83 -33.32 -19.74 657.74 389.67

30-06-08 9.83 0.75 6.11 -3.16 -19.31 9.99

30-07-08 10.61 7.82 6.89 3.91 26.94 15.29

30-08-08 1.12 0.42 -2.6 -3.49 9.07 12.18

30-09-08 4.46 7.54 0.74 3.63 2.69 13.18

30-10-08 8.62 1.59 4.9 -2.32 -11.37 5.38

30-11-08 -4.76 9.91 -8.48 6 -50.88 36.00

30-12-08 21.48 5.91 17.76 2 35.52 4.00

30-01-09 0.01 -0.71 -3.71 -4.62 17.14 21.34

30-02-09 18.66 2.41 14.94 -1.5 -22.41 2.25

30-03-09 -7.63 -3.29 -11.35 -7.2 81.72 51.84

30-04-09 2 -5.21 -1.72 -9.12 15.69 83.17

30-05-09 7.98 9.11 4.26 5.2 22.15 27.04

30-06-09 -4.28 7.13 -8 3.22 -25.76 10.37

30-07-09 17.06 6.14 13.34 2.23 29.75 4.97

30-08-09 11.46 2.23 7.74 -1.68 -13.00 2.82

30-09-09 0.91 10.62 -2.81 6.71 -18.86 45.02

30-10-09 -0.9 -8.6 -4.62 -12.51 57.80 156.50

30-11-09 30.53 11.36 26.81 7.45 199.73 55.50

30-12-09 -3.87 6.93 -7.59 3.02 -22.92 9.12

30-01-10 25.45 5.55 21.73 1.64 35.64 2.69

28-02-10 10.46 4.54 6.74 0.63 4.25 0.40

31-03-10 13.13 8.77 9.41 4.86 45.73 23.62

Total 258.52 140.6 1413.30 1474.39

Return = (P1 /P0 *100) -100 Where, P1 = Current month price, P0 = Previous month price


SD = √ Σ(X- X1)2 /n = √4511.48/36SD = 11.19

Calculation of BetaB = [Σ(Ra –Ra1)(Rm-Rm1)]/ Σ(Rm-Rm1)2 Where, Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market = 1413.3/1474.39B = 0.958

Calculation of AlphaAlpha = (Ra1-Rm1)*B = (7.18-3.9)*0.958

=3.1

Table 1.5

Calculation of Return and Risk of BHEL:


Return 7.18

Beta 0.958Alpha -3.14

Chart 1.5:

ANALYSIS: BHEL has a risk factor of 11.19%


Alpha and Beta are -3.14 and 0.958 respectively

INTERPETATION: Beta of the BHEL. is 0.958 which is very close to one; it shows the equal


return is only 7.18%.

4. ICICI BANK LTD:-


Calculation of Beta


Return of Market


(Rm-Rm1)2

30-03-07

Date Scrip Value Return in % X -X1 (X - X1)230-03-03 133.9630-03-07 121.4 -9.38 -13.10 171.5030-04-07 137.67 13.40 9.68 93.7431-05-07 150.2 9.10 5.38 28.9630-06-07 158.6 5.59 1.87 3.5131-07-07 184.55 16.36 12.64 159.8229-08-07 194.95 5.64 1.92 3.6730-09-07 248.1 27.26 23.54 554.2930-10-07 249.9 0.73 -2.99 8.9730-11-07 295.7 18.33 14.61 213.3730-12-07 287.25 -2.86 -6.58 43.2730-01-08 271.8 -5.38 -9.10 82.7830-02-08 295.9 8.87 5.15 26.4930-03-08 315.2 6.52 2.80 7.8530-04-08 258.2 -18.08 -21.80 475.4030-05-08 266.8 3.33 -0.39 0.1530-06-08 269.45 0.99 -2.73 7.4430-07-08 278.56 3.38 -0.34 0.1130-08-08 286.05 2.69 -1.03 1.0630-09-08 299 4.53 0.81 0.6530-10-08 340.2 13.78 10.06 101.1930-11-08 370.75 8.98 5.26 27.6730-12-08 360.6 -2.74 -6.46 41.7030-01-09 380.75 5.59 1.87 3.4930-02-09 393 3.22 -0.50 0.2530-03-09 375.1 -4.55 -8.27 68.4730-04-09 392.05 4.52 0.80 0.6430-05-09 421.55 7.52 3.80 14.4730-06-09 536 27.15 23.43 548.9630-07-09 481.7 -10.13 -13.85 191.8430-08-09 600.35 24.63 20.91 437.2930-09-09 497.15 -17.19 -20.91 437.2330-10-09 537.15 8.05 4.33 18.7130-11-09 584.7 8.85 5.13 26.3430-12-09 609.15 4.18 0.46 0.2130-01-10 615.1 0.98 -2.74 7.5328-02-10 589.25 -4.20 -7.92 62.77Total 169.65 3871.80

30-04-07 -9.38 -2.92 -13.1 -6.83 89.47 46.6531-05-07 13.4 7.47 9.68 3.56 34.46 12.6730-06-07 9.1 13.41 5.38 9.5 51.11 90.2531-07-07 5.59 5.14 1.87 1.23 2.30 1.5129-08-07 16.36 11.92 12.64 8.01 101.25 64.1630-09-07 5.64 4.91 1.92 1 1.92 1.0030-10-07 27.26 10.19 23.54 6.28 147.83 39.4430-11-07 0.73 2.81 -2.99 -1.1 3.29 1.2130-12-07 18.33 15.74 14.61 11.83 172.84 139.9530-01-08 -2.86 -2.45 -6.58 -6.36 41.85 40.4530-02-08 -5.38 -0.49 -9.1 -4.4 40.04 19.3630-03-08 8.87 -1.36 5.15 -5.27 -27.14 27.7730-04-08 6.52 1.15 2.8 -2.76 -7.73 7.6230-05-08 -18.08 -15.83 -21.8 -19.74 430.33 389.6730-06-08 3.33 0.75 -0.39 -3.16 1.23 9.9930-07-08 0.99 7.82 -2.73 3.91 -10.67 15.2930-08-08 3.38 0.42 -0.34 -3.49 1.19 12.1830-09-08 2.69 7.54 -1.03 3.63 -3.74 13.1830-10-08 4.53 1.59 0.81 -2.32 -1.88 5.3830-11-08 13.78 9.91 10.06 6 60.36 36.0030-12-08 8.98 5.91 5.26 2 10.52 4.0030-01-09 -2.74 -0.71 -6.46 -4.62 29.85 21.3430-02-09 5.59 2.41 1.87 -1.5 -2.81 2.2530-03-09 3.22 -3.29 -0.5 -7.2 3.60 51.8430-04-09 -4.55 -5.21 -8.27 -9.12 75.42 83.1730-05-09 4.52 9.11 0.8 5.2 4.16 27.0430-06-09 7.52 7.13 3.8 3.22 12.24 10.3730-07-09 27.15 6.14 23.43 2.23 52.25 4.9730-08-09 -10.13 2.23 -13.85 -1.68 23.27 2.8230-09-09 24.63 10.62 20.91 6.71 140.31 45.0230-10-09 -17.19 -8.6 -20.91 -12.51 261.58 156.5030-11-09 8.05 11.36 4.33 7.45 32.26 55.5030-12-09 8.85 6.93 5.13 3.02 15.49 9.1230-01-10 4.18 5.55 0.46 1.64 0.75 2.6928-02-10 0.98 4.54 -2.74 0.63 -1.73 0.4031-03-10 -4.2 8.77 -7.92 4.86 -38.49 23.62Total 169.65 140.6 1746.98 1474.39

Return = (P1 /P0 *100) -100 Where, P1 = Current month price,

P0 = Previous month price


SD = √ Σ(R- R1)2 /n = √3871.8/36SD = 10.37

Calculation of Beta

B = [Σ(Ra –Ra1)(Rm-Rm1)]/ Σ(Rm-Rm1)2Where Ra = Return on Company,

Ra1= Average return on company Rm= Return on market,

Rm1= Average return on market = 1746.98/1474.39B = 1.18


Alpha = (Ra1-Rm1)*B = (4.71-3.9)*1.18

=0.96

Table No 1.6:

Factors Percentage

Risk 10.37

Return 4.71

Beta 1.18

Alpha 0.96

Chart No 1.6: Calculation of Return and Risk of ICICI Bank Ltd

ANALYSIS:

ICICI Bank Ltd. has a risk factor of 10.37%.

Its rate of return on a monthly average is 4.71%.


INTERPETATION:

Beta of the ICICI Bank Ltd. is 1.18 which is higher to one; it shows the high

volatility of scrip with respect to market. Risk of the share is 10.37% and the

rate of return is only 4.71%.

4. SATYAM:- Calculation of Return and Risk

Calculation of Beta

Date Scrip Value Return in % X -X1 (X - X1)230-03-07 186.530-04-07 162 -13.14 -16.86 284.1531-05-07 161.9 -0.06 -3.78 14.3030-06-07 190.8 17.85 14.13 199.6731-07-07 175.05 -8.25 -11.97 143.3929-08-07 208.65 19.19 15.47 239.4630-09-07 241 15.50 11.78 138.8730-10-07 298.55 23.88 20.16 406.4130-11-07 315 5.51 1.79 3.2030-12-07 361.8 14.86 11.14 124.0430-01-08 380 5.03 1.31 1.7230-02-08 314.95 -17.12 -20.84 434.2430-03-08 320 1.60 -2.12 4.4830-04-08 334 4.38 0.66 0.4330-05-08 300 -10.18 -13.90 193.2030-06-08 309 3.00 -0.72 0.5230-07-08 327 5.83 2.11 4.4330-08-08 342.5 4.74 1.02 1.0430-09-08 373.4 9.02 5.30 28.1130-10-08 371 -0.64 -4.36 19.0330-11-08 417.6 12.56 8.84 78.1630-12-08 408 -2.30 -6.02 36.2330-01-09 401 -1.72 -5.44 29.5530-02-09 401.55 0.14 -3.58 12.8430-03-09 390 -2.88 -6.60 43.5130-04-09 402 3.08 -0.64 0.4130-05-09 457 13.68 9.96 99.2330-06-09 498 8.97 5.25 27.5830-07-09 535.9 7.61 3.89 15.1430-08-09 508 -5.21 -8.93 79.6830-09-09 520 2.36 -1.36 1.8430-10-09 579.8 11.50 7.78 60.5330-11-09 653.9 12.78 9.06 82.0930-12-09 710 8.58 4.86 23.6130-01-10 741 4.37 0.65 0.4228-02-10 771 4.05 0.33 0.1131-03-10 823.9 6.86 3.14 9.87Total 165.44 2841.49


Return of Market


(Rm-Rm1)2

30-03-0730-04-07 -13.14 -2.92 -16.86 -6.83 115.15 46.6531-05-07 -0.06 7.47 -3.78 3.56 -13.46 12.6730-06-07 17.85 13.41 14.13 9.5 134.24 90.2531-07-07 -8.25 5.14 -11.97 1.23 -14.72 1.5129-08-07 19.19 11.92 15.47 8.01 123.91 64.1630-09-07 15.5 4.91 11.78 1 11.78 1.0030-10-07 23.88 10.19 20.16 6.28 126.60 39.4430-11-07 5.51 2.81 1.79 -1.1 -1.97 1.2130-12-07 14.86 15.74 11.14 11.83 131.79 139.9530-01-08 5.03 -2.45 1.31 -6.36 -8.33 40.4530-02-08 -17.12 -0.49 -20.84 -4.4 91.70 19.3630-03-08 1.6 -1.36 -2.12 -5.27 11.17 27.7730-04-08 4.38 1.15 0.66 -2.76 -1.82 7.6230-05-08 -10.18 -15.83 -13.9 -19.74 274.39 389.6730-06-08 3 0.75 -0.72 -3.16 2.28 9.9930-07-08 5.83 7.82 2.11 3.91 8.25 15.2930-08-08 4.74 0.42 1.02 -3.49 -3.56 12.1830-09-08 9.02 7.54 5.3 3.63 19.24 13.1830-10-08 -0.64 1.59 -4.36 -2.32 10.12 5.3830-11-08 12.56 9.91 8.84 6 53.04 36.0030-12-08 -2.3 5.91 -6.02 2 -12.04 4.0030-01-09 -1.72 -0.71 -5.44 -4.62 25.13 21.3430-02-09 0.14 2.41 -3.58 -1.5 5.37 2.2530-03-09 -2.88 -3.29 -6.6 -7.2 47.52 51.8430-04-09 3.08 -5.21 -0.64 -9.12 5.84 83.1730-05-09 13.68 9.11 9.96 5.2 51.79 27.0430-06-09 8.97 7.13 5.25 3.22 16.91 10.3730-07-09 7.61 6.14 3.89 2.23 8.67 4.9730-08-09 -5.21 2.23 -8.93 -1.68 15.00 2.8230-09-09 2.36 10.62 -1.36 6.71 -9.13 45.0230-10-09 11.5 -8.6 7.78 -12.51 -97.33 156.5030-11-09 12.78 11.36 9.06 7.45 67.50 55.5030-12-09 8.58 6.93 4.86 3.02 14.68 9.1230-01-10 4.37 5.55 0.65 1.64 1.07 2.6928-02-10 4.05 4.54 0.33 0.63 0.21 0.4031-03-10 6.85 8.77 3.14 4.86 15.26 23.62

Total 165.44 140.6 1226.24 1474.39

Return = (P1 /P0 *100) – 100 Where, P1 = Current month price, P0 = Previous month price

R1 = ΣR/n, where n=number of months.

R1 = 165.44/36 =4.59

SD = √ Σ(R- R1)2 /n = √2813.89/36SD = 8.84

Calculation of Beta

B = [Σ(Ra –Ra1)(Rm-Rm1)]/ Σ(Rm-Rm1)2 ,Where Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market

= 1226.24/1474.39 B = 0.83

Calculation of Alpha Alpha = (Ra1-Rm1)*B

= (4.59-3.9)*0.958 =0.66

Table No 1.7

Calculation of Return and Risk of Satyam Computers Ltd

Factor Percentage

Risk 8.84

Return 4.59

Beta 0.83

Alpha 0.66

Chart No 1.7

ANALYSIS:

Satyam Computers has a risk factor of 8.84%.

Its rate of return on a monthly average is 4.71%.

Alpha and Beta are 0.66 and 0.83 respectively.

INTERPETATION:

Beta of the Satyam Computers is 0.83 which is lower than one; it shows the low


return is only 4.59%

Average risk of selected Company shares

Table no: 1.8

Company Risk

ACC Limited 9.33

Bajaj Auto Limited 9.63BHEL 11.19ICICI Bank 10.37Satyam 8.84

Total 49.36Bench Mark 6.4

Average risk = 49.36/5 =9.87

Chart No:1.8

ANALYSIS:

BHEL has the highest risk factor of 11.19% with 0.958% beta and -3.14% of alpha.

Satyam Computers has the lowest risk factor of 8.84% with 0.83% of beta and 0.66% of alpha.

Bench Mark has the risk factor of 6.4% On an average Equity shares have the risk factor of 9.87%

INTERPETATION:

Risk is a major factor influence all type of investors. In the above selected Equity

Shares average risk factor is 9.87% and the risk factor of bench mark is 6.4%, it is

showing equities are more risky.

Average return of selected Company shares

Table no: 1.9

Company ReturnACC Limited 5.29Bajaj Auto Limited 5.4BHEL 7.18ICICI Bank Ltd. 4.71Satyam 4.59Total 27.17Bench Mark 3.9

Average return = 27.17/5 = 5.43

Chart no: 1.9

ANALYSIS:

BHEL shares have got the highest return of 7.18%

Satyam Computers shares have got the lower return of 4.59%

Bench Mark return is 3.9%

On an average equity shares have got 5.43% per month.

INTERPRETATION:

Return is a major factor influencing factor to all type of investors. In the above

selected equity shares average return is 5.43%, compared to bench mark return of 3.9%

selected equity shares returns are good and it will attract more and more customers.

Comparison of Selected Equity Capital and Mutual Fund Schemes in respect their Risk

Table no: 1.10

Investment Avenues RiskMutual funds 6.74Equity capital 9.87

Chart no: 1.10

ANALYSIS:

Mutual funds have the risk on an average of 6.74%

Equity shares have the risk on an average of 9.87%

INTERPETATION:

Equity capital and Mutual fund schemes are subjected to market risk. Based

on the above analysis mutual funds have an average risk of 6.74% which is compared

to equity shares risk of 9.87% is lower. Those who would like to take risk can go for

equity investments

Comparison of Selected Equity Capital and Mutual Fund Schemes in respect their Return

Table No: 1.11

Investment Avenues Return

Mutual funds 4.39

Equity capital 5.43

Chart No: 1.11

ANALYSIS:

Mutual funds have average return of 4.39%

Equity shares have the return on an average of 5.43%

INTERPETATION:

Equity capital and Mutual fund schemes are subjected to market risk. Based

on the above analysis mutual funds have an average return of 4.39% which is

compared to equity shares return of 5.43% is lower. Those who would like to take

risk can go for equity investments for getting higher return.

******

Chapter 5

Provides the summary of findings.

SUMMARY OF FINDINGS


intelligently in order to have enough money available for funding the higher

education of one’s children, for buying a house, or for one’s own golden years.

FINDINGS

Investments in both equity capital and mutual fund schemes are subjected to

market risk.

Now a day’s investments in equity and mutual fund schemes are increases

because of falling interest rates and awareness of equity capital and mutual

fund schemes in the minds of investors.

BHEL has a highest risk factor of 11.19% and Satyam Computers has a

lowest risk factor of 8.84%, where as benchmark risk is 6.4% which shows

investing in equity is more risky.

BHEL has a highest return on a monthly average of 8.18% and Satyam

Computers has a lowest return on a monthly average of 4.59%, where as

benchmark return is only 3.9% which shows higher the risk higher the return.

Sundaram SMILE fund has higher risk factor of 7.89% with a negative return

of 0.23% where as Reliance Vision Fund has higher risk factor of 6.9% with a

return of 5.16% per month.

On the basis of above analysis mutual funds have a risk factor on an average

6.74%, and their returns are 4.39% per month

On the basis of above analysis Equity shares have a risk factor on an average

9.87%, and their returns are 5.43% per month

On the basis of above statements it has proved higher the risk higher the

return and lower the risk lower the return.

Investment in mutual fund schemes gives diversified portfolio to investors.

Standard deviation is one of the best ways for finding risk of scrip’s mutual fund

units.

In case of both equities and mutual funds(open ended) liquidity is very high, with

in three working days mutual funds will converted into cash and liquidity of

equity is based on demand and supply conditions of the market for a particular

scrip.

******

Chapter 6

Deals with the suggestions and

conclusions for the benefits of

prospective Investors and

market analysers.

SUGGESTIONS

Now a day’s Indian capital market is attracting more and more foreign

institutional investors (FII’s) because of economic stability and increasing

growth rate, it leads to gradual increase in the stock market indices

This is the right time to invest in share and mutual funds because of above

reason.

Interest rates are falling gradually and equity markets are booming because of

this reason investors can move from bank deposits to mutual funds and

equities.

Five basic norms of smart investing:

1. Investors must have a portfolio approach to wealth

2. One must analyze one's risk appetite.

3. One must possess a long-term outlook

4. Never forget to do homework and analysis.

5. It is essential to have control over one's emotions.

Investment in both equity capital and mutual fund schemes are subjected to

market risk. Following are the recommendations given to investors for investing

rationally in equity capital and mutual fund schemes

Aggressive Growth Funds

Investors who can assume the risk of potential loss in value of their investment in the

hope of achieving substantial and rapid gains. They are not suitable for investors who must

conserve their principal or who must maximize current income.

Growth Funds

Although growth funds are more conservative than aggressive growth funds,

they are still relatively volatile. They are suitable for growth-oriented investors but

not investors who are unable to assume risk or who are dependent on maximizing

current income from their investments.

Growth and Income Funds

Growth and income funds have low to moderate stability of principal and

moderate potential for current income and growth. They are suitable for investors

who can assume some risk to achieve growth of capital but who also want to maintain

a moderate level of current income.

Fixed-Income Funds

Fixed-income funds are suitable for investors who want to maximize current

income and who can assume a degree of capital risk in order to do so. Again,

carefully read the prospectus to learn if a fund's investment policy with respect to

yield and risk coincides with your own objectives.

Balanced/Equity Income funds

Balanced and equity income funds are suitable for conservative investors who

want high current yield with some growth.

Money Market Funds

Money market funds are suitable for conservative investors who want high

stability of principal and moderate current income with immediate liquidity.

******

CONCLUSION


intelligently in order to have enough money available for funding the higher

education of one’s children, for buying a house, or for one’s own golden years.

The study will guide the new investor who wants to invest in equity and

mutual fund schemes by providing knowledge about how to measure the risk and

return of particular scrip or mutual fund scheme. The study recommends new

investors to go for mutual funds rather than equities, because of high risk and market

instability.

From the calculation it is found that the average risk of equities based on

sample size is 9.87 & they are earning 5.43% returns per month where as mutual

funds average risk based on sample size is only 8.74 & they are earning 4.39% per

month

*****

papai project (2)

Education

equity shares

share of equity

concept of equity capital

equity financing

theprimary equity

term equity

equity accounts

key sources of equity