INTRODUCTION

The Indian financial system based on four basic components like Financial
Market, Financial Institutions, Financial Service, Financial Instruments. All are play
important role for smooth activities for the transfer of the funds and allocation of the
funds. The main aim of the Indian financial system is that providing the efficiently
services to the capital market. The Indian capital market has been increasing
tremendously during the second generation reforms. The first generation reforms
started in 1991 the concept of LPG. (Liberalization, privatization, Globalization)
Then after 1997 second generation reforms was started, still the it’s going on,
its include reforms of industrial investment, reforms of fiscal policy, reforms of ex-
imp policy, reforms of public sector, reforms of financial sector, reforms of foreign
investment through the institutional investors, reforms banking sectors. The economic
development model adopted by India in the post independence era has been
characterized by mixed economy with the public sector playing a dominating role and
the activities in private industrial sector control measures emaciated form time to
time. The last two decades have been a phenomenal expansion in the geographical
coverage and the financial spread of our financial system.
The spared of the banking system has been a major factor in promoting
financial intermediation in the economy and in the growth of financial savings with
progressive liberalization of economic policies, there has been a rapid growth of
capital market, money market and financial services industry including merchant
banking, leasing and venture capital, leasing, hire purchasing. Consistent with the
growth of financial sector and second generation reforms its need to fruition of the
financial sector. Its also need to providing the efficient service to the investor mostly
if the investors are supply small amount, in that point of view the mutual fund play
vital for better service to the small investors. The main vision for the analysis for this
study is to scrutinize the performance of five star rated mutual funds, given the weight
of risk, return, and assets under management, net assets value, book value and price
earnings ratio.
There are a lot of investment avenues available today in the financial market
for an investor with an investable surplus. He can invest in Bank Deposits, Corporate
Debentures, and Bonds where there is low risk but low return. He may invest in Stock

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of companies where the risk is high and the returns are also proportionately high. The
recent trends in the Stock Market have shown that an average retail investor always
lost with periodic bearish tends. People began opting for portfolio managers with
expertise in stock markets who would invest on their behalf. Thus we had wealth
management services provided by many institutions. However they proved too costly
for a small investor. These investors have found a good shelter with the mutual funds.
CONCEPT OF MUTUAL FUND:
A mutual fund is a common pool of money into which investors place their
contributions that are to be invested in accordance with a stated objective. The
ownership of the fund is thus joint or “mutual”; the fund belongs to all investors. A
single investor’s ownership of the fund is in the same proportion as the amount of the
contribution made by him or her bears to the total amount of the fund.
Mutual Funds are trusts, which accept savings from investors and invest the
same in diversified financial instruments in terms of objectives set out in the trusts
deed with the view to reduce the risk and maximize the income and capital
appreciation for distribution for the members. A Mutual Fund is a corporation and the
fund manager’s interest is to professionally manage the funds provided by the
investors and provide a return on them after deducting reasonable management fees.
The objective sought to be achieved by Mutual Fund is to provide an opportunity for
lower income groups to acquire without much difficulty financial assets. They cater
mainly to the needs of the individual investor whose means are small and to manage
investors portfolio in a manner that provides a regular income, growth, safety,
liquidity and diversification opportunities.
There are many, many types of mutual funds. You can classify funds based
Structure (open-ended & close-ended), Nature (equity, debt, balanced), Investment
objective (growth, income, money market) etc. a code of conduct and registration
structure for Mutual Fund intermediaries, which were subsequently mandated by
SEBI. In addition, this year AMFI was involved in a number of developments and
enhancements to the regulatory.

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DEFINITION:
In “Mutual Fund Book”, published by Investment company of U.S.., “A
Mutual Fund is a financial service organization that receives money from
shareholders, invest it, earns returns on it, attempts to make it grows and aggress to
pay the share holders cash on demand for the current value of his “investment”. The
investment managers of the funds manage these savings in such a way that the risk is
minimized and steady return is ensured.
Securities and Exchange Board of India (Mutual Funds) Regulations, 1996
define ‘Mutual Fund’ as , “a fund established in the form of a trust to raise monies
through the sale of units to the public or a section of the public under one or more
schemes for investing in securities, including, money market instrument”.

CHARACTERISTICS OF MUTUAL FUNDS

The specific characteristics of Indian Mutual Fund Schemes, can be narrated
as listed below.
ASSURANCE OF MINIMUM RETURNS:
In general mutual funds do not assure any minimum returns to their investors.
However, Indian Mutual Fund Schemes launched during 1987 to 1990 assured
specific returns till 1991, when the SEBI and Union Ministry of Finance order the
mutual funds not to assure minimum returns. Recently, SEBI has formulated a policy
that, mutual funds with a track record of five years will be allowed to offer fixed
returns not exceeding one year period.

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MULTIPLE OPTIONS:
Most of the mutual fund schemes are offering different options to the investors
under one scheme. For example, a growth oriented scheme may offer option of either
regular income or re-investment of income. Under the regular income plan, dividend
shall be distributed to investors and under the second dividend will be reinvested and
total amount shall be paid at time of redemption.
LOCK IN PERIOD:
Mutual Fund Schemes offer documents that contain a clause of lock-in period
ranging from one year to three years. Till the completion of the minimum period the
investors are to trade neither the units on the stock exchange nor to avail themselves
of repurchase facility.
LIQUIDITY:
Generally open-ended funds offer the facility of repurchase and the close-
ended are traded at stock exchange offering repurchase after a minimum lock in
period of two to three years. Mutual funds also have a facility to pledge or mortgage
at banks to obtain loan and can be transferred in favour of any individual.
INCENTIVES TO EARLY SUBSCRIBERS:
Most of the close-ended mutual fund schemes are offering incentives to
encourage early subscription to investors. This is more often in the tax planning
schemes. For instance, if the scheme is open for a period of three months, the investor
may be allowed a deduction from the amount to be invested at a certain specified rate,
if the subscriptions were during the specified time limits.
RETURN RISK MATRIX:

Higher Risk Moderate Higher Risk Higher returns

Returns • Equity
•Venture Capital

Return Risk
Matrix

Lower risk Lower Returns Lower Risk Higher Returns

•Postal Savings •Mutual Funds

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 While investing in mutual funds or any other financial products, we seek
opinion from our relatives or friends and then invest. Hardly do we understand the
importance of making informed decisions. Most of us do not understand the
significance of using a benchmark for the purpose of effective comparison. Capital
market regulator SEBI (Securities and Exchange Board of India) has made it
mandatory for fund houses to declare a benchmark index. Benchmark returns will
give you a standard by which to make the comparison. It basically indicates what the
fund has earned against what it should have earned. One can say that the benchmark’s
returns are the MF schemes target and the scheme is expected to have done well if it
manages to beat its benchmark.
A scheme’s benchmark is an index that is decided by its fund house to serve as
a standard for the scheme’s returns. Some well-known benchmarks are the BSE
Sensex and NSE Nifty for funds that invest in large-company stocks. A benchmark
gives lay investors an opportunity to compare the performance of their investments
with that of the broader market. Similarly, a fund house can also set target returns and
try hard to perform better than the benchmark index. A fund's returns compared to its
benchmark are called its benchmark returns

10 STEPS BEFORE INVESTING IN MUTUAL FUNDS

1) MUTUAL FUND:
You are not going to get very far in mutual fund investing if you don't
understand what a mutual fund is.
2) ANNUAL RETURN:
The first thing you are going to see mutual fund companies doing, is touting
their returns. There are a few ways to measure a fund's return - be sure you know the
differences.
3) EXPENSE RATIO:
Expense ratios are probably the most important ratio when it comes to mutual
fund investing. Don't buy a mutual fund until you understand what an expense ratio is.
4) NET ASSET VALUE:
Mutual fund prices are measured by Net Asset Value or NAV. NAVs are
calculated and published every day. They are easy to understand, but come with their
own suppress.

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5) FUND STYLE:
"Styles" mean a lot of different things in the investing world. Find out why
style is an important factor in fund investing.
6) INDEX FUND:
Index funds should be a part of every portfolio. Learn what they are and what
makes them such a great investment.
7) TURNOVER RATIO:
Depending on your situation, this ratio may be a key piece of data in the
mutual fund selection process. This ratio is especially important in taxable accounts.
8) FUND PROSPECTUS:
By law, all mutual fund companies are required to provide you with a
prospectus before you invest. Learn what a prospectus is and what you should do with
it.
9) LOAD:
Loads are something to watch out for. They come in many shapes and forms
(back-end, front-end). Be sure to learn what a load is before you invest in a mutual
fund.
10) MONEY MARKET FUNDS:
Looking for a safe place to stash your cash? Money market funds are a great
place. Find out why.

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 NEED FOR THE STUDY:
The main purpose this project was to known about the Mutual Fund and its
functioning. This helps to known in details about Mutual Fund Industry right from its
inspection stage, growth and future prospectus.
It also helps in understanding different schemes of Mutual Funds. Because my
study depends upon prominent Funds in India and their schemes like Equity,
Dividend, Balanced as well as the returns associated with those schemes
The project study was done to ascertain the asset allocation, entry load, Exit load,
associated with the Mutual Fund ultimately this would help in understanding the
benefits of mutual Funds to investors.

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 SCOPE OF THE STUDY:
The project deals with the Equity funds in the Mutual Fund Industry under the
regulated environment after the introduction of SEBI (Stock Exchange of India)
regulations Act -1996 enforcing uniformity in rules and regulations. Performance
evaluating of mutual fund in this study is contained to three aspects namely.
 Financial,
 Investing Public and
 Regulatory body
In Financial Aspect the performance of Mutual Fund is evaluated from return
incurred by them and their comparison with the Stock Index (NIFTY is Bench Mark).
Investment performance of the Mutual Fund is evaluating through a survey
conducted on the Mutual Fund investors considering the attitudes, satisfactions and
other aspects.
Financially the impact of regulatory measures taken from time to time by the
regulatory authority (AMFI, SEBI, NSE and BSE) on the performance of the Mutual
Funds. Evaluating the financial performance of the selected Mutual Fund in the period
of the Study is taken from 2011-2015 (i.e. January to December for the 5 years).

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 OBJECTIVES OF THE STUDY:
 To understand the fluctuations in NET ASSET VALUES (NAV’s) of
Equity Funds and NIFTY.
 To Analyze the Risk and Return of Select Equity Mutual Funds and
NIFTY.
 To Evaluate Performance of Select Equity Mutual Funds and NIFTY.
 To give findings and suggestions based on the study.

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 Research Methodology

Research refers to search for knowledge. One can also define research as a
scientific and systematic search for pertinent information on a specific topic. It is an
art of scientific investigation. It is the way to systematically solve a problem In a
competitive situation with multiple mutual funds operating in Indian market, it is
necessary to know about the performance of different mutual funds as the
performance of mutual fund decides about the future of Mutual Fund Company.
LITERATURE SURVEY:
I have used newspapers, magazines related to business & finance & apart
from websites.

PROPOSED FOR DATA ANALYSIS:

In this section the researcher has explained the research methodology used
which include Attributes taken for analyzing the mutual funds performance, data
used and its collection. Also time period of the study, population, sample,
sampling frame and the models and Techniques employed for analyzing the data
have been discussed in detail.
DATA COLLECTION DESIGN:
Sources of data had collected for my study by the secondary data from websites &
journals. Databases used for collecting these data are Alpha data base of CMIE,
RBI Bulletin, Website of AMFI, NSE, Bombay Stock Exchange, mutual funds
companies, Value Research Personal FN and Yahoo Finance.
DATA INTERPRETATION:
I have used some charts Data Interpretation is that in which we analysis the
whole collected data & tries to give it in simple words to be understandable.
ATTRIBUTES:
The attributes considered by the researcher in the study have been discussed as
under:

i. LOAD STATUS (LOAD):

It the fee charged by Mutual Fund Company. Load status has been taken as a
dummy variable in many past studies. In the present study, it is and has been

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obtained by the average of six years expense ratios of mutual fund schemes i.e.,
coded as “1” for schemes with load fee “0” otherwise.

ii. EXPENSE RATIO (EXPENSE):

It is per unit cost incurred in managing the mutual fund.
iii. MINIMUM INITIAL INVESTMENT (MINII):
Minimum initial investment is the minimum amount needed initially by the
investors to invest in a mutual fund scheme.
iv. RISK (RISK):
Two risk measures as standard deviation (σ) and beta (β) have been used in the
past researches. In the present study, risk measure beta (β) has been used for
analyzing the efficiency of fund schemes and standard deviation (σ) has been
taken for analyzing the relationship of performance with attributes.
v. Standard Deviation or Total Risk of Portfolio:
Standard deviation (σ) represents the total risk of the portfolio. The σ of all the
sample schemes has been calculated on the yearly returns.
vi. Systematic Risk or Beta (β):
Systematic risk is that component of total portfolio risk which is not controlled
through the process of diversification. β of mutual fund schemes has been
obtained through equation by using standard regression methodology.
Rpt = αp + βp Rmt + ἐp
Where, Rpt = return on mutual fund scheme for the year t
Rmt is the return on the market index for time t; αp represents the coefficient term
βp beta coefficient, the measure of sensitivity; ἐp is the error term
vii. ASSET SIZE (ASSETS):
Asset size of a mutual fund is the market value of all the securities held in its
portfolio. It has been computed by taking the natural logarithm of the Mutual
fund’s assets.
viii. ASSET RATIO (ASSETR):
Asset ratio of the mutual fund has been calculated as:

Asset Ratio = Total Assets as on at the end of Current year / Total

Assets as on at the end of Previous year

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The ratio above 1 indicates a positive and ratio less than one indicates a negative
asset flow.

viii. RISK ADJUSTED RETURN (SHARPE):

Risk adjusted return has been computed by Sharpe Ratio (Sp) also called as the
reward to variability ratio. It has been employed in many researches. Sp for the
sample mutual fund schemes have been computed by the equation,
Sp = (Rp - Rf) / σp
Where, Sp stands for the Sharpe ratio of mutual fund schemes (April, 2006 to
March, 2012).
Rp is the average yearly return on the mutual fund scheme.
σp stands for the total risk or the standard deviation of the yearly returns of
portfolio.
Rf is stands for the average risk free rate of return.

Xi. Treynor’s:
Jack Treynor extended the work of William Sharpe by formulating treynor
ratio. Treynor ratio is similar to Sharpe ratio, but the only difference between the
ratios is that of the denominator Treynor ratio shows the risk adjusted
performance of the fund. Here the denominator is the beta of the portfolio. Thus, it
takes into account the systematic risk of the portfolio.

Formula for Treynor ratio: (Rp-Rf)/Beta.

Where, Rp: Return on the portfolio

Rf: Risk free rate
Beta, The sensitivity of the portfolio to changes in the overall market.

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Net Asset Value (NAV):
The net asset value (NAV) is usually used in mutual and unit trust fund
describing the value of funds of assets and less the value of liabilities. It is also
referred as net book value or book value and the term may also be used in many
places in different meanings. Net asset value mostly used in mutual and unit trust fund
to signify total value of the portfolio of the fund less its liabilities. For mutual and unit
trust fund, the liabilities may be the owed money to investment trustees and managers.
Mutual fund and unit trust companies will divide the NAV with total outstanding
units in order to get the net asset value per share. This will then be the selling price for
the mutual and unit trust fund before adding any fees and charges.
The net asset value per share for mutual and unit trust fund is daily calculated
in the closing market price reflecting the value change. The net asset value in
companies is the book value deducting liabilities and intangible assets from the total
assets. For companies, the net asset value is always used in market book ratio or price
book ratio to compare the net asset value of the company with its market value. If the
net asset value is bigger than the market value, many investors will believe that a
particular company may be undervalued. Investors can normally find the net asset
value in the balance sheet.
Net Asset Value Formula Investment: Formula
Net asset value mutual fund = total assets – liabilities
Net asset value per share = net asset value/total outstanding shares
Net asset value = total assets – intangible assets – liabilities

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 LIMITATIONS OF THE STUDY
 This study confined to Equity Oriented Funds.
 This Study confined to Growth Sector.
 This Study does not provide a guarantee and future forecast on mutual
funds brining on past performance.
 The Study confined to last 5 years data i.e. from 2011 to 2015 (monthly
data i.e. From January to December).

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 PROFILE OF MUTUAL FUND INDUSTRY IN INDIA
Introduction:

The financial sector in India consists of two broad segments, the organized
and unorganized sectors. The former includes commercial banks, non-banking
financial companies (NBFCs), development financial institutions (DFIs), mutual
funds, insurance companies, pension and provident funds. The entry of private sector
banks, mutual funds and insurance companies has made a dent in the dominance of
the public sector. Several new generation public sector banks have emerged and are
successfully challenging the public sector banks. Mutual funds from the domestic and
foreign private sectors have taken away a significant proportion of the market share of
the UTI and public sector mutual funds. The financial institutions that are operating in
the organized sector can be grouped into the following categories as represented here
under.
A Mutual Fund is a trust that pools the savings of a number of investors who
share a common financial goal. The money thus collected is then invested in capital
market instruments such as shares, debentures and other securities. The income
earned through these investments and the capital appreciation realized is shared by its
unit holders in proportion to the number of units owned by them. Thus, a Mutual
Fund is the most suitable investment for the common person as it offers an
opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost.

GROWTH OF MUTUAL FUND INDUSTRY:

The stock market crash in 1929, the Great Depression, and the outbreak of the
Second World War slackened the pace of growth of the mutual fund industry.
Innovations in products and services increased the popularity of mutual funds in the
1950s and 1960s. The first international stock mutual fund was introduced in the US
in 1940. In 1976, the first tax – exempt municipal bond funds emerged and in 1979,
the first money market mutual funds were created. The latest additions are the
international bond fund in 1986 arm funds in 1990. This industry witnessed
substantial growth in the eighties and nineties when there was a significant increase in
the number of mutual funds, schemes, assets, and shareholders. In the US the mutual

15
fund industry registered s ten – fold growth the eighties. Since 1996, mutual fund
assets have exceeds bank deposits. The mutual fund industry and the banking industry
virtually rival each other in size.

HISTORY OF THE MUTUAL FUND IN INDIA:

The origin of mutual fund industry in India is with the introduction of
the concept of mutual fund by UTI in the year 1963. Though the
growth was slow, but it accelerated from the year 1987 when non-UTI
players entered the industry. In the past decade, Indian mutual fund
industry had seen dramatic improvements, both quality wise as well as
quantity wise. Before, the monopoly of the market had seen an ending
phase; the Assets under Management (AUM) were Rs. 67bn. The
private sector entry to the fund family raised the AUM to Rs. 470 bn in
March 1993 and till April 2004; it reached the height of 1,540 bn.
Putting the AUM of the Indian Mutual Funds Industry into comparison,
the total of it is less than the deposits of SBI alone. The main reason of
its poor growth is that the mutual fund industry in India is new
country. Large sections of Indian investors are yet to be intellectuated
with the concept. Hence, it is the prime
responsibility of all mutual fund companies, to market the product
correctly abreast of selling.The mutual fund industry can be broadly
put into four phases according to the development of the sector. Each
phase is briefly described as under. in the
First Phase - 1964-87 Unit Trust of India (UTI) was established
on 1963 by an Act of Parliament. It was set up by the Reserve Bank of
India and functioned under the Regulatory and administrative control
of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI
and the Industrial Development Bank of India (IDBI) took over the
regulatory and administrative control in place of RBI.

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Second Phase - 1987-1993 (Entry of Public Sector
Funds) Entry of non-UTI mutual funds. SBI Mutual Fund was the
first followed by Can bank Mutual Fund (Dec 87), Punjab National Bank
Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of
India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC in 1989 and
GIC in 1990. The end of 1993 marked Rs.47,004 as assets under
management.
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 This phase had bitter
experience for UTI. It was bifurcated into two separate entities. One is
the Specified Undertaking of the Unit Trust of India with AUM of
Rs.29,835 crores (as on January 2003). 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 AUM 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
PERFORMANCE OF MUTUAL
421 schemes
FUND IN INDIA Let us start the discussion of the
performance of mutual funds in India from the day the concept of
mutual fund took birth in India. The year was 1963. Unit Trust of India
invited investors or rather to those who believed in savings, to park
their money in UTI Mutual Fund.

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For 30 years it goaled without a single second player. Though the 1988
year saw some new mutual fund companies, but UTI remained in a
monopoly position. The performance of mutual funds in India in the
initial phase was not even closer to satisfactory level. People rarely
understood, and of course investing was out of question. But yes,
some 24 million shareholders was accustomed with guaranteed high
returns by the begining of liberalization of the industry in 1992. This
good record of UTI became marketing tool for new entrants. The
expectations of investors touched the sky in profitability factor.
However, people were miles away from the praparedness of risks
factor after the liberalization.
The Assets Under Management of UTI was Rs. 67bn. by the end of
1987. Let me concentrate about the performance of mutual funds in
India through figures. From Rs. 67bn. the Assets Under Management
rose to Rs. 470 bn. in March 1993 and the figure had a three times
higher performance by April 2004. It rose as high as Rs. 1,540bn.
The net asset value (NAV) of mutual funds in India declined when
stock prices started falling in the year 1992. Those days, the market
regulations did not allow portfolio shifts into alternative investments.
There was rather no choice apart from holding the cash or to further
continue investing in shares. One more thing to be noted, since only
closed-end funds were floated in the market, the investors disinvested
by selling at a loss in the secondary market.
The performance of mutual funds in India suffered qualitatively. The
1992 stock market scandal, the losses by disinvestments and of course
the lack of transparent rules in the whereabouts rocked confidence
among the investors. Partly owing to a relatively weak stock market
performance, mutual funds have not yet recovered, with funds trading
at an average discount of 1020 percent of their net asset value. The
supervisory authority adopted a set of measures to create a
transparent and competitive environment in mutual funds. Some of
them were like relaxing investment restrictions into the market,
introduction of open-ended funds, and paving the gateway for mutual
funds to launch pension schemes.
The measure was taken to make mutual funds the key instrument for
long-term saving. The more the variety offered, the quantitative will be
investors. At last to mention, as long as mutual fund companies are
performing with lower risks and higher profitability within a short span
of time, more and more people will be inclined to invest until and
unless they are fully educated with the dos and donts of mutual funds.
MUTUAL FUND COMPANIES IN INDIA
The concept of mutual funds in India dates back to the year
1963. The era between 1963 and 1987 marked the existence of only
one mutual fund company in India with Rs.67bn assets under
management (AUM), by the end of its monopoly era, the Unit Trust of
India (UTI). By the end of the 80s decade, few other mutual fund

18
companies in India took their position in mutual fund market. The new
entries of mutual fund companies in India were SBI Mutual Fund,
Canbank Mutual Fund, Punjab National Bank Mutual Fund, Indian Bank
Mutual Fund, Bank of India Mutual Fund. The succeeding decade
showed a new horizon in indian mutual fund industry. By the end of
1993, the total AUM of the industry was Rs. 470.04 bn. The private
sector funds started penetrating the fund families. In the same year
the first Mutual Fund Regulations came into existance with re-
registering all mutual funds except UTI. The regulations were further
given a revised shape in 1996. Kothari Pioneer was the first private
sector mutual fund company in India which has now merged with
Franklin Templeton. Just after ten years with private sector players
penetration, the total assets rose up to Rs. 1218.05 bn. Today there
are 33 mutual fund companies in India.

MAJOR MUTUAL FUND COMPANIES IN

INDIA
ABN AMRO Mutual Fund ABN AMRO Mutual Fund was setup on
April 15, 2004 with ABN AMRO Trustee (India) Pvt. Ltd. as the Trustee
Company. The AMC, ABN AMRO Asset Management (India) Ltd. was
incorporated on November 4, 2003. Deutsche Bank A G is the
custodian of ABN AMRO Mutual Fund. Birla Sun Life Mutual
Fund Birla Sun Life Mutual Fund is the joint venture of Aditya Birla
Group and Sun Life Financial. Sun Life Financial is a golbal organisation
evolved in 1871 and is being represented in Canada, the US, the
Philippines, Japan, Indonesia and Bermuda apart from India. Birla Sun
Life Mutual Fund follows a conservative long-term approach to
investment. Recently it crossed AUM of Rs. 10,000 crores.
Bank of Baroda Mutual Fund (BOB Mutual Fund) Bank
of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30,
1992 under the sponsorship of Bank of Baroda. BOB Asset
Management Company Limited is the AMC of BOB Mutual Fund and
was incorporated on November 5, 1992. Deutsche Bank AG is the
custodian.
HDFC Mutual Fund HDFC Mutual Fund was setup on June
30, 2000 with two sponsor namely Housing Development Finance
Corporation Limited and Standard Life Investments Limited.

HSBC Mutual Fund HSBC Mutual Fund was setup on May 27,
2002 with HSBC Securities and Capital Markets (India) Private Limited

19
as the sponsor. Board of Trustees, HSBC Mutual Fund acts as the
Trustee Company of HSBC Mutual Fund. ING Vysya Mutual
Fund ING Vysya Mutual Fund was setup on February 11, 1999 with
the same named Trustee Company. It is a joint venture of Vysya and
ING. The AMC, ING Investment Management (India) Pvt. Ltd. was
incorporated on April 6, 1998.
Prudential ICICI Mutual Fund
The mutual fund of ICICI is a joint venture with Prudential Plc. of
America, one of the largest life insurance companies in the US of A.
Prudential ICICI Mutual Fund was setup on 13th of October, 1993 with
two sponsor, Prudential Plc. and ICICI Ltd. The Trustee Company
formed is Prudential ICICI Trust Ltd. and the AMC is Prudential ICICI
Asset Management Company Limited incorporated on 22nd of June,

1993. Sahara Mutual Fund Sahara Mutual Fund was set up on

July 18, 1996 with Sahara India Financial Corporation Ltd. as the
sponsor. Sahara Asset Management Company Private Limited
incorporated on August 31, 1995 works as the AMC of Sahara Mutual
Fund. The paid-up capital of the AMC stands at Rs 25.8 crore.

State Bank of India Mutual Fund State Bank of India Mutual

Fund is the first Bank sponsored Mutual Fund to launch offshor fund,
the India Magnum Fund with a corpus of Rs. 225 cr. approximately.
Today it is the largest Bank sponsored Mutual Fund in India. They have
already launched 35 Schemes out of which 15 have already yielded
handsome returns to investors. State Bank of India Mutual Fund has
more than Rs. 5,500 Crores as AUM. Now it has an investor base of
over 8 Lakhs spread over 18 schemes. Tata Mutual Fund Tata
Mutual Fund (TMF) is a Trust under the Indian Trust Act, 1882. The
sponsorers for Tata Mutual Fund are Tata Sons Ltd., and Tata
Investment Corporation Ltd. The investment manager is Tata Asset
Management Limited and its Tata Trustee Company Pvt. Limited. Tata
Asset Management Limited's is one of the fastest in the country with
more than Rs. 7,703 crores (as on April 30, 2005) of AUM.
Kotak Mahindra Mutual Fund Kotak Mahindra Asset
Management Company (KMAMC) is a subsidiary of KMBL. It is
presently having more than 1,99,818 investors in its various schemes.
KMAMC started its operations in December 1998. Kotak Mahindra
Mutual Fund offers schemes catering to investors with varying risk -
return profiles. It was the first company to launch dedicated gilt
scheme investing only in government securities. Unit Trust of
India Mutual Fund UTI Asset Management Company Private
Limited, established in Jan 14, 2003, manages the UTI Mutual Fund
with the support of UTI Trustee Company Privete Limited. UTI Asset

20
Management Company presently manages a corpus of over Rs.20000
Crore. The sponsorers of UTI Mutual Fund are Bank of Baroda (BOB),
Punjab National Bank (PNB), State Bank of India (SBI), and Life
Insurance Corporation of India (LIC). The schemes of UTI Mutual Fund
are Liquid Funds, Income Funds, Asset Management Funds, Index
Funds, Equity Funds and Balance Funds. Reliance Mutual Fund
Reliance Mutual Fund (RMF) was established as trust under Indian
Trusts Act, 1882. The sponsor of RMF is Reliance Capital Limited and
Reliance Capital Trustee Co. Limited is the Trustee. It was registered
on June 30, 1995 as Reliance Capital Mutual Fund which was changed
on March 11, 2004. Reliance Mutual Fund was formed for launching of
various schemes under which units are issued to the Public with a view
to contribute to the capital market and to provide investors the
opportunities to make investments in diversified securities.
Standard Chartered Mutual Fund Standard Chartered
Mutual Fund was set up on March 13, 2000 sponsored by Standard
Chartered Bank. The Trustee is Standard Chartered Trustee Company
Pvt. Ltd. Standard Chartered Asset Management Company Pvt. Ltd. is
the AMC which was incorporated with SEBI on December 20,1999.
Franklin Templeton India Mutual Fund The group,
Frnaklin Templeton Investments is a California (USA) based company
with a global AUM of US$ 409.2 bn. (as of April 30, 2005). It is one of
the largest financial services groups in the world. Investors can buy or
sell the Mutual Fund through their financial advisor or through mail or
through their website. They have Open end
Diversified Equity schemes, Open end Sector Equity schemes, Open
end Hybrid schemes, Open end Tax Saving schemes, Open end Income
and Liquid schemes, Closed end Income schemes and Open end Fund
of Funds schemes to offer. Morgan Stanley Mutual Fund
India Morgan Stanley is a worldwide financial services company and
its leading in the market in securities, investmenty management and
credit services. Morgan Stanley Investment Management (MISM) was
established in the year 1975. It provides customized asset
management services and products to governments, corporations,
pension funds and non-profit organisations. Its services are also
extended to high net worth individuals and retail investors. In India it
is known as Morgan Stanley Investment Management Private Limited
(MSIM India) and its AMC is Morgan Stanley Mutual Fund (MSMF). This
is the first close end diversified equity scheme serving the needs of
Indian retail investors focussing on a long-term capital appreciation.
Escorts Mutual Fund Escorts Mutual Fund was setup on April 15,
1996 with Excorts Finance Limited as its sponsor. The Trustee
Company is Escorts Investment Trust Limited. Its AMC was
incorporated on December 1, 1995 with the name Escorts Asset
Management Limited.

21
 Alliance Capital Mutual Fund Alliance Capital Mutual
Fund was setup on December 30, 1994 with Alliance Capital
Management Corp. of Delaware (USA) as sponsorer. The Trustee is
ACAM Trust Company Pvt. Ltd. and AMC, the Alliance Capital Asset
Management India (Pvt) Ltd. with the corporate office in Mumbai.

Benchmark Mutual Fund Benchmark Mutual Fund was setup

on June 12, 2001 with Niche Financial Services Pvt. Ltd. as the
sponsorer and Benchmark Trustee Company Pvt. Ltd. as the Trustee
Company. Incorporated on October 16, 2000 and headquartered in
Mumbai, Benchmark Asset Management Company Pvt. Ltd. is the AMC.
Canbank Mutual Fund Canbank Mutual Fund was setup on
December 19, 1987 with Canara Bank acting as the sponsor. Canbank
Investment Management Services Ltd. incorporated on March 2, 1993
is the AMC. The Corporate Office of the AMC is in Mumbai.
Chola Mutual Fund Chola Mutual Fund under the sponsorship of
Cholamandalam Investment & Finance Company Ltd. was setup on
January 3, 1997. Cholamandalam Trustee Co. Ltd. is the Trustee
Company.
LIC Mutual Fund Life Insurance Corporation of India set up LIC
Mutual Fund on 19th June 1989. It contributed Rs. 2 Crores towards
the corpus of the Fund. LIC Mutual Fund was constituted as a Trust in
accordance with the provisions of the Indian Trust Act, 1882. The
Company started its business on 29th April 1994. Company Ltd as the
Investment Managers for LIC Mutual Fund.
GIC Mutual Fund GIC Mutual Fund, sponsored by General
Insurance Corporation of India (GIC), a Government of India
undertaking and the four Public Sector General Insurance
Companies, viz. National Insurance Co. Ltd (NIC), The New India
Assurance Co. Ltd. (NIA), The Oriental Insurance Co. Ltd (OIC) and
United India Insurance Co. Ltd. (UII) and is constituted as a Trust in
accordance with the provisions of the Indian Trusts Act, 1882.

22
 TOTAL ASSES UNDER MANAGEMENT

BENEFITS OF INVESTING IN MUTUAL

FUNDS
􀀹Diversification: The best mutual funds design their portfolios so
individual investments will react differently to the same economic
conditions. For example, economic conditions like a rise in interest
rates may cause certain securities in a diversified portfolio to
decrease in value. Other securities in the portfolio will respond to
the same economic conditions by increasing in value. When a
portfolio is balanced in this way, the value of the overall portfolio
should gradually increase over time, even if some securities lose
value.

􀀹Professional Management: Most mutual funds pay topflight

professionals to manage their investments. These managers
decide what securities the fund will buy and sell.

􀀹Regulatory oversight: Mutual funds are subject to many

government regulations that protect investors from fraud.

23
 􀀹Liquidity: It's easy to get your money out of a mutual fund. Write
a check, make a call, and you've got the cash.

􀀹Convenience: You can usually buy mutual fund shares by mail,

phone, or over the Internet.

􀀹Low cost: Mutual fund expenses are often no more than 1.5
percent of your investment. Expenses for Index Funds are less
than that, because index funds are not actively managed. Instead,
they automatically buy stock in companies that are listed on a
specific index


􀀹Transparency: Mutual fund companies regularly show the
amount invested in various sectors and also stocks. This helps
investors to know where their money is invested.

􀀹Flexibility: Investors have the choice of switching to other funds

in case of open ended funds.

􀀹Choice of schemes: Many companies in India have floated

mutual fund schemes. This gives investor’s lot options to choose
from.

􀀹Tax benefits: Almost all the companies have floated Tax saving
schemes. SBI MAGNUM TAX FUND for example, this gives
investors a chance to escape tax on their investment

DRAWBACKS OF MUTUAL FUND:

􀀹No Guarantees: No investment is risk free. If the entire stock
market declines in value, the value of mutual fund shares will go
down as well, no matter how balanced the portfolio. Investors
encounter fewer risks when they invest in mutual funds than when
they buy and sell stocks on their own. However, anyone who invests
through a mutual fund runs the risk of losing money.

􀀹Fees and commissions: All funds charge administrative fees to

cover their day-to-day expenses. Some funds also charge sales
commissions or "loads" to compensate brokers, financial consultants,
or financial planners. Even if you don't use a broker or other financial
adviser, you will pay a sales commission if you buy shares in a Load
Fund.


􀀹Management risk: When you invest in a mutual fund, you depend
on the fund's manager to make the right decisions regarding the
fund's portfolio. If the manager does not perform as well as you had
hoped, you might not make as much money on your investment as
you expected.

24
 MUTUAL FUND- ORGANISATION
There are many entities involved and the diagram below
illustrates the organizational set up of a mutual fund:

Organisation of a Mutal Fund

TOP 10 MUTUAL FUND COMPANIES IN INDIA

1. Reliance Regular Savings Equity (G)
2. ICICI Pru Infrastructure (G)
3. Kotak Opportunities Fund (G)
4. DSP-ML India T.I.G.E.R -RP (G)
5. Standard Chartered Premier Equity
6. Tata Infrastructure Fund (G)
7. Birla Frontline Equity (G)
8. Sundaram BNP Paribas Select Focus (G)
9. HDFC Growth Fund (G)
10. Principal Global Oppor (G)

TYPES OF MUTUAL FUNDS:

A common man is so much confused about the various kinds of Mutual Funds that he
is afraid of investing in these funds as he cannot differentiate between various types of
Mutual Funds with fancy names. Mutual Funds can be classified into various
categories under the following heads:-

25
 Types of
Mutual
Funds

Based on Investment
Based on Fund Scheme Other Schemes
Objectives

Open-ended Funds Equity/Growth funds Tax-Saving funds

Closed-ended Funds Debt/ Income funds Index funds

Interval Funds Balanced funds Sector-Specific funds

Money Market/ Liquid

Funds

Gilt funds

Based on the Fund Scheme:

OPEN-ENDED FUND:
An open-ended fund is a fund that is available for subscription and can be
redeemed on a continuous basis. It is available for subscription throughout the year
and investors can buy and sell units at NAV related prices. These funds do not have a
fixed maturity date. The key feature of an open-ended fund is liquidity.
CLOSE-ENDED FUND:
A close-ended fund is a fund that has a defined maturity period, e.g. 3-6 years.
These funds are open for subscription for a specified period at the time of initial
launch. These funds are listed on a recognized stock exchange.
INTERVAL FUNDS:
Interval funds combine the features of open-ended and close-ended funds.
These funds may trade on stock exchanges and are open for sale or redemption at
predetermined intervals on the prevailing NAV.

26
BASED ON INVESTMENT OBJECTIVES:
EQUITY/GROWTH FUNDS:
Equity/Growth funds invest a major part of its corpus in stocks and the
investment objective of these funds is long-term capital growth. When you buy shares
of an equity mutual fund, you effectively become a part owner of each of the
securities in your fund’s portfolio. Equity funds invest minimum 65% of its corpus in
equity and equity related securities. These funds may invest in a wide range of
industries or focus on one or more industry sectors. These types of funds are suitable
for investors with a long-term outlook and higher risk appetite.
DEBT/INCOME FUNDS:
Debt/ Income funds generally invest in securities such as bonds, corporate
debentures, government securities (gilts) and money market instruments. These funds
invest minimum 65% of its corpus in fixed income securities. By investing in debt
instruments, these funds provide low risk and stable income to investors with
preservation of capital. These funds tend to be less volatile than equity funds and
produce regular income. These funds are suitable for investors whose main objective
is safety of capital with moderate growth.
BALANCED FUNDS:
Balanced funds invest in both equities and fixed income instruments in line
with the pre-determined investment objective of the scheme. These funds provide
both stability of returns and capital appreciation to investors. These funds with equal
allocation to equities and fixed income securities are ideal for investors looking for a
combination of income and moderate growth. They generally have an investment
pattern of investing around 60% in Equity and 40% in Debt instruments.

MONEY MARKET/ LIQUID FUNDS:

Money market/ Liquid funds invest in safer short-term instruments such as
Treasury Bills, Certificates of Deposit and Commercial Paper for a period of less than
91 days. The aim of Money Market /Liquid Funds is to provide easy liquidity,
preservation of capital and moderate income. These funds are ideal for corporate and
individual investors looking for moderate returns on their surplus funds.

27
GILT FUNDS:
Gilt funds invest exclusively in government securities. Although these funds
carry no credit risk, they are associated with interest rate risk. These funds are safer as
they invest in government securities.
OTHER SCHEMES:
Some of the common types of mutual funds and what they typically invest in:
TAX-SAVING (EQUITY LINKED SAVINGS SCHEMES) FUNDS:
Tax-saving schemes offer tax rebates to investors under specific provisions of
the Income Tax Act, 1961. These are growth-oriented schemes and invest primarily in
equities. Like an equity scheme, they largely suit investors having a higher risk
appetite and aim to generate capital appreciation over medium to long term.
INDEX FUNDS:
Index schemes replicate the performance of a particular index such as the BSE
Sensex or the S&P CNX Nifty. The portfolio of these schemes consist of only those
stocks that represent the index and the weight age assigned to each stock is aligned to
the stock’s weight age in the index. Hence, the returns from these funds are more or
less similar to those generated by the Index.
SECTOR-SPECIFIC FUNDS:
Sector-specific funds invest in the securities of only those sectors or industries
as specified in the Scheme Information Document. The returns in these funds are
dependent on the performance of the respective sector/industries for example FMCG,
Pharma, IT, etc. The funds enable investors to diversify holdings among many
companies within an industry. Sector funds are riskier as their performance is
dependent on particular sectors although this also results in higher returns generated
by these funds.

SOME OTHER IMPORTANT TERMS USED IN MUTUAL FUNDS

SALE PRICE:
It is the price you pay when you invest in a scheme and is also called "Offer
Price". It may include a sales load.

28
REPURCHASE PRICE:
It is the price at which a Mutual Fund’s repurchases its units and it may
include a back-end load. This is also called Bid Price.
REDEMPTION PRICE:
It 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 / FRONT END LOAD:
It is a charge collected by a scheme when it sells the units also called as;
‘Front-end’ load. Schemes which do not charge a load at the time of entry are called
‘No Load’ schemes.
Repurchase / ‘Back-end’ Load: It is a charge collected by a Mutual Fund’s
when it buys back / Repurchases the units from the unit holders.
ROLE OF CNX NIFTY:
The CNX Nifty is a well diversified 50 stock index accounting for 13 sectors
of the economy. It is used for a variety of purposes such as benchmarking fund
portfolios, index based derivatives and index funds.
CNX Nifty is owned and managed by India Index Services and Products Ltd. (IISL).
IISL is India's first specialized company focused upon the index as a core product.
 The CNX Nifty Index represents about 66.17% of the free float market
capitalization of the stocks listed on NSE as on March 31, 2015.
 The total traded value for the last six months ending March 2015 of all index
constituents is approximately 46.22% of the traded value of all stocks on the
NSE.
 Impact cost of the CNX Nifty for a portfolio size of Rs.50 lakhs is 0.06% for
the month March 2015.
 CNX Nifty is professionally maintained and is ideal for derivatives trading.
In case of equity oriented schemes, mutual funds may appropriately select any
of the indices available, (e.g. BSE sensitive) Index, S&P CNX Nifty, BSE 100, BSE
200 or S&P CNX 500 etc.) a benchmark index depending on the investment
objective and portfolio.
Benchmarks for debt oriented and balanced fund schemes23 developed by
research and rating agencies recommended by the AMFI on a regular basis shall be
used by the Mutual Funds. In case of sector or industry specific schemes, Mutual

29
Funds may select any sartorial indices as published by the Stock Exchanges and other
reputed agencies.
These benchmark indices may be decided by the AMC(s) and Trustees. Any
change at a later date in the benchmark index shall be recorded and reasonably
justified Growth funds maintaining minimum 65% of their investments in equities
shall always be compared against The Bombay Stock Exchange Ltd. (BSE) Sensex or
The National Stock Exchange Ltd. (NSE) Nifty or BSE 100 or CRISIL 500 or similar
standard indices.
ISSUES AND CHALLENGES:
The Indian mutual fund industry has strived hard for handling certain key
challenges for further growth of the industry.
 The household savings rate in the country is approximately 37 per cent which
though seems to be minute, compared to that of 40 per cent of East Asians, is
significant when compared to the negative savings by the US residents.
Though India enjoys good savings rate, the mutual fund industry gets very
little out of this. A large pool of money savings in India is still with banks. If
this money is channelized into mutual funds, it will help India to match other
well developed markets like USA and Canada.
 Another issue facing the industry is that till now the Indian mutual funds have
focused on the ‘A’ Class cities and haven’t made much impact on the B and C
class cities and the rural areas, which have also increased in income levels and
spending levels.
 Lack of deeper distribution networks and channels is hurting the growth of the
industry. If the mutual fund industry comes up with better distribution models
and increase its reach, it could tap into a huge potential investors market.
 Operational inefficiencies like lengthy transaction cycle, old fashioned return
distribution models like cheque based returns by some of the mutual funds are
hampering the growth prospects of the industry.
 Investment in technology takeup huge capital and is pretty risky for the mutual
fund companies to invest in. The rapid obsolescence of technology and huge
upfront investment costs are also getting in the way of the mutual funds from
embracing the technology wave.

30
 BENEFITS OF INVESTING IN MUTUAL
FUNDS
 􀀹Diversification: The best mutual funds design their
portfolios so individual investments will react differently to the
same economic conditions. For example, economic conditions
like a rise in interest rates may cause certain securities in a
diversified portfolio to decrease in value. Other securities in the
portfolio will respond to the same economic conditions by
increasing in value. When a portfolio is balanced in this way, the
value of the overall portfolio should gradually increase over time,
even if some securities lose value.
 􀀹Professional Management: Most mutual funds pay topflight
professionals to manage their investments. These managers
decide what securities the fund will buy and sell.
 􀀹Regulatory oversight: Mutual funds are subject to many
government regulations that protect investors from fraud.
 􀀹Liquidity: It's easy to get your money out of a mutual fund.
Write a check, make a call, and you've got the cash.
 􀀹Convenience: You can usually buy mutual fund shares by
mail, phone, or over the Internet.
 􀀹Low cost: Mutual fund expenses are often no more than 1.5
percent of your investment. Expenses for Index Funds are less
than that, because index funds are not actively managed.
Instead, they automatically buy stock in companies that are
listed on a specific index
 
 􀀹Transparency: Mutual fund companies regularly show the
amount invested in various sectors and also stocks. This helps
investors to know where their money is invested.
 􀀹Flexibility: Investors have the choice of switching to other
funds in case of open ended funds.
 􀀹Choice of schemes: Many companies in India have floated
mutual fund schemes. This gives investor’s lot options to choose
from.
 􀀹Tax benefits: Almost all the companies have floated Tax
saving schemes. SBI MAGNUM TAX FUND for example, this gives
investors a chance to escape tax on their investment
 DRAWBACKS OF MUTUAL FUND:
 􀀹No Guarantees: No investment is risk free. If the entire
stock market declines in value, the value of mutual fund shares
will go down as well, no matter how balanced the portfolio.
Investors encounter fewer risks when they invest in mutual
funds than when they buy and sell stocks on their own.
However, anyone who invests through a mutual fund runs the
risk of losing money.

 􀀹Fees and commissions: All funds charge administrative fees

to cover their day-to-day expenses. Some funds also charge

31
 sales commissions or "loads" to compensate brokers, financial
consultants, or financial planners. Even if you don't use a broker
or other financial adviser, you will pay a sales commission if you
buy shares in a Load Fund.
 
 􀀹Management risk: When you invest in a mutual fund, you
depend on the fund's manager to make the right decisions
regarding the fund's portfolio. If the manager does not perform
as well as you had hoped, you might not make as much money
on your investment as you expected.

32
 PROFILE OF INDIA INFO LINE LIMITED
VIJAYAWADA

Overview
IIFL Holdings Limited (NSE: IIFL, BSE: IIFL) is the apex holding company
of the entire IIFL Group, promoted by first generation entrepreneurs. Our evolution
from an entrepreneurial start-up in 1995 to a leading financial services group in India
is a story of steady growth by adapting to the dynamic business environment, without
losing focus on our core domain of financial services.

IIFL Holdings Ltd, formerly known as India Info Line Limited, offers a gamut
of services including financing, wealth and asset management, broking, financial
product distribution, investment banking, institutional equities, realty and property
advisory services through its various subsidiaries.

IIFL Holdings with a consolidated net-worth of Rs.25,577 million as of

financial year ended March 31, 2015, has global presence with offices in London,
New York, Houston, Geneva, Hong Kong, Dubai, Singapore and Mauritius. Our well-
entrenched network of close to 2,500 business locations spread over 850+ towns and
cities has given us the ability to expand and reach out to different segments of the
society. IIFL group has more than 2.9 million satisfied customers across various
business segments and is continuously building on its strengths to deliver excellent
service to its expanding customer base.

VISION
To become the most respected company in the financial services space in India.
VALUES
Values of IIFL are summarised in one acronym: GIFTS
 Growth with focused team of dynamic professionals
 Integrity in all aspects of business-no compromise in any situation
 Fairness in all or dealings-employees, customers, vendors, and shareholders all
included.

33
  Transparency in what the company do – and inn how and why the company do
it.
 Service Orientation is companies’ core value, imbibed by all sales as well as
support teams.

Business strategy
 Steady growth by adapting to the changing environment, without losing the
focus on our core domain of financial services.
 De-risked business through multiple products and diversified revenue steam.
 Knowledge is the key to power superior financial decisions.
 Keep costs low and continuously strive for innovation.

Customer strategy
 Remain largely a retail focused organisation, driving stickiness through
knowledge and quality service.
 Cater to untapped areas in semi-urban and rural areas, which is relatively safe
from cut-throat competition.
 Target the micro, small and medium enterprise mushrooming across the
country through a cluster approach for lending business.
 Use wide multi-modal network serving as one stop shop to customers.

People strategy
 Attracts the best talents and driven people.
 Ensure conductive merit environment.
 Liberal ownership sharing.

34
 Journey of India Info Line Limited

1996 - A small group of professionals formed an Information Services Company

The company was formed in October 1995 with a vision to produce high quality,
unbiased, independent research on the Indian economy, business, industries and
corporates.

The company was originally incorporated as Probity Research and Services

Pvt.Ltd. The name of the company was later changed to India Infoline Ltd.

1997 - The quality gets recognition

The quality of this research soon resulted in a client list that read like a who's
who of Indian business and finance, from Hindustan Lever toTata’s, from
Crisil to McKinsey, from SBI to Citibank.

1998 - Onwards and upwards!

We launched our research products – Probity 200 Company Reports, followed
Economy Probe, Sector Reports covering Pharmaceuticals, Information
Technology, Oil & Gas and FMCG among others. Leading FIIs, brokers,
banks and companies were immediate subscribers.

1999 - The launch of www.indiainfoline.com

Up popped a crazy idea – if all this research were to be available free on the
internet, the number of users could well leap straight from hundreds to
millions. We took the plunge and thus www.indiainfoline.com was born!
CDC (now Actis) was the first private equity firm to invest US$1mn.

2000 - Launched online trading through www.5paisa.com

This was the year we became one of the pioneers of online trading, with the
launch of 5paisa.com, a paradigm shift, with full service brokerage at 0.05%
when the industry was at 1-1.5%. we received growth capital from Intel and
others in this year of 'dot-com euphoria'.

2001 - Dot com bust- and preparations for better times!

35
The 'internet bubble' burst with a vengeance and funding just vanished. we
persevered, nevertheless, with laying the foundations of our distribution
business, becoming India's first Corporate Agent for Insurance, tying up with
ICICI Prudential Life Insurance.

2002 - Difficult year – Survive without losing focus

There was global gloom. The internet bubble burst, the economy witnessed a
slowdown and the stock market was paralyzed by the Ketan Parekh scam. We
conserved resources, focused on survival and avoided any distractions, which
were away from our core competencies i.e. financial services.

2003 - Trader Terminal – Our proprietary software to revolutionize

online trading
Convinced that technology was game changer, we launched the 'Trader
Terminal', a pioneering technology that we built over 3 years, shall we call it
retail investor's Bloomberg. The product became an instant hit and remains
sought after even to date.

2004 - Our commodities license

We were again at the forefront to offer commodities broking to retail investors. A
coincidence may be, but this was when our magical linkage between transactional and
advisory expertise began.

2005 - Our Maiden IPO – the tipping point

Listing on the NSE and BSE gave impetus and momentum to expansion, scaling up
and funding. It was again full steam ahead. The IPO was at Rs15.2(adjusted for split)
and shareholders have received Rs15.7 by way of dividend. The price was Rs60.65 as
at FY13 end.

2006 - Commenced our lending business

This was another major move for our group – from fee-based to fund-based business.
From a modest beginning with all processes and controls, the NBFC was later to
become the most dominant business line.

36
2007 - From retail to wholesale – Institutional Equities begins with a bang
A high profile institutional team from the then leading foreign brokerage house joined
us in what was a first deal of its kind in the Indian broking industry, making IIFL the
port of first call for FIIs and Mutual Funds.

2008 - Launched IIFL Private Wealth Management

IIFL Wealth’s business model, in contrast to the traditional industry's practice of
driving revenues through distribution and commission, focuses on advisory fees as
core income, ensuring alignment of interests with those of our clients. Meanwhile,
we transitioned from a corporate agent to insurance broking.

2009 - Enterprising India

Our first global investor conference, Enterprising India, held in 2009-10, received an
overwhelming response. It was attended by 450 fund managers, 67 corporates and
thought leaders like Jim Walker, David Bloom and Brahma Chellany among others.

2010 - Beyond Borders

IIFL became the first Indian broker to register on the Colombo Stock Exchange. In the
same year, IIFL received in-principle approval for membership of the Singapore Stock
Exchange.

2011 - The Launch of IIFL Mutual Fund

We incorporated the IIFL Asset Management Company, and in doing so, ensured our
coverage of the entire gamut of financial services.

2012 - Announcing the Real Estate Fund

A debt and equity linked investment instrument, this fund's focus is on affordable
residential segments in the top seven cities in India. The maiden fund raised Rs5bn, as
testimony to customer's trust.

2013 - The biggest AIF and all time high income and profits

37
We launched AIF raising Rs6.28bn, the largest AIF fund in India, till date.
Over the years, our business model has been de-risked and is no longer
dependent on cyclical capital markets. Reported all time high income of
Rs26.65bn and PAT of Rs2.79bn
2014 - Set up advisory services for succession and estate planning in IIFL
Wealth Management
We created a niche by providing bespoke solutions in areas of succession
planning, asset protection and administration services integrated with its
family office proposition.

2015 - Record Profits!

Our consolidated income was at Rs 36.7 billion and profit after tax stood at Rs
4.5 billion for the financial year ended March 31, 2015.

Strengths

Managerial depth
Our promoters individually are first-generation Indian entrepreneurs with
meritorious academic backgrounds and impeccable professional careers.

Nirmal Jain, Chairman, is a rank holder Chartered Accountant, Cost

Accountant and an MBA from IIM Ahmedabad and Mr R. Venkataraman, Managing
Director, is an Electronics Engineer from IIT Kharagpur and an MBA from IIM
Bangalore.

The Promoters have built the business from scratch, without pedigree of a
large family business or inherited wealth and steered it towards a market leading
position by dint of hard work and enterprise.

IIFL Group has consistently attracted the best of the talent from across the
financial sector – private sector banks, foreign banks, public sector banks and
established NBFCs. The senior management team have years of experience and
backgrounds similar to promoters and leads competent teams. IIFL has uninterrupted

38
history of profits and dividends since listing. Shareholders’ wealth has grown at over
32% per annum since listing in 2005 till March 31, 2015.

Governance
The Promoters have demonstrated an exemplary track record
of governance and utmost integrity. There have been no notable regulatory strictures
or oversight ever in the group’s history. This is despite a widespread and broad range
of operations governed by multiple regulators including RBI, SEBI, IRDA, FMC and
NHB. In addition, we have eight licensed subsidiaries in major global financial
centers.

Our Board has independent directors, highly respected for their professional
integrity as well as rich financial and banking experience and expertise. We have an
advisory board comprising stalwarts with long and immaculate careers in banks,
public service and legal profession.
People
Our people form the backbone of our organization and are the foundation of our
success. We have significant ownership by employees with a credo of ‘owners work,
workers own’, which has enabled us to maintain a highly motivated staff driven by
‘owner mindset’. We create owners out of our employees not just by offering a
financial stake but also through autonomy to take decisions, make mistakes and grow
confidence, competence and career.
Knowledge
IIFL is a knowledge driven organization and has over the years developed and
institutionalized knowledge about its businesses at all the levels.

Our roots are in original research on economy, sectors, companies, capital

markets and global financial trends. Our in-house research capabilities gives us an
edge in understanding industry trends, macro-economic situations, business cycles,
inflation and interest rate trends, technological changes, regulatory and legal updates,
environmental factors impacting labour, raw material supply, pollution norms and for
intermediate products- trends in end user sectors and for consumption products-
trends in customers habits.

39
 Innovation
We have successfully executed a number of innovative and disruptive ideas in the
financial services industry to rise from a start-up to leadership position in less than
two decades. For instance:

 We gave away all our research free on indiainfoline.com and acquired millions of
readers

 We pioneered online trading and revolutionized broking at lowest rate of 5 basis

points

Distribution reach
We are present in around 2,500 business locations across more than 850 cities
in India.
Our global footprint covers US, UK, Singapore, Hong Kong, UAE, Mauritius and
Switzerland.

De-risked business
IIFL has a de-risked and diversified business model across multiple revenue
streams.
We offer multiple products across all segments of financial services.

Risk management
The basis of our risk management and hence our sustainability is our
underlying conservatism. The objective of our risk management process is to insulate
the company from risks associated with the business while simultaneously creating an
environment conducive for growth.
board is reflected in our business plans and integrated into our operations.
We identify risks through appropriate systems, indicators and risk surveys
reinforced by our mangers. The company’s well-defined organizational structure,
documented policies and standard operating procedures, authority matrix and internal
controls ensure efficiency of operations, compliance with internal and regulatory
requirements.
Well capitalized
The Group has net-worth of about Rs. 30 billion.

40
Technology
Right from inception, IIFL has incubated and developed next generation
technology for its core businesses.

IIFL’s front office software is seamlessly integrated to a highly automated

proprietary back office, risk management and MIS software.
IIFL Trader Terminal is an entirely home grown proprietary technology, which allows
trading in Equities Cash & Derivatives, Commodities, Forex, Mutual Funds, NFOs
and IPOs on a single screen.

Customer service
Our existing customer service organization has evolved with the singular goal
since inception that our customer experience should be the best. We offer services
through multiple customer touch-points such as personal interaction at our offices,
call centre, email, and online web-based interface. We have made significant
investment in systems, technology, people and their training, to ensure high service
standards. We have also won an award for Best Customer Service in Financial
Services 2013. Some key elements of our service approach are ‘first time right’ and
‘lightning fast’ response time. We have taken several proactive steps to reduce the
incidence of grievances.
Awards
 No. 1 in Fixed Income Portfolio Management in India, 2012 – Euro Money
 Best Broking House with Global Presence, 2011 & 2012 – D&B
 Top Performer, Equity (FI Category), 2012 – BSE
 Best Commodities Investment, 2012 – Euro Money
 Best Customer Service in Financial Services, 2013 - Retailer Customer
Service Awards

41
 THEORETICAL FRAMEWORK
In economics, BRIC is a grouping acronym that refers to the countries of
Brazil, Russia, India, and China which are all deemed to be at a similar stage of newly
advanced economic development. It is typically rendered as "the BRIC" or "the BRIC
countries" or "the BRIC economies" or alternatively as the "Big Four". A related
acronym is BRICS where S stands for South Africa, but South Korea in the study.
The acronym was coined by Jim O'Neill in a 2001 paper titled "Building
Better Global Economic BRICS". The acronym has come into widespread use as a
symbol of the apparent shift in global economic power away from the developed G7
economies towards the developing world.
Projections on the future power of the BRICS economies vary widely. Some
sources suggest that they might overtake the G7 economies by 2027. More modestly,
Goldman Sachs has argued that, although the five BRICS countries are developing
rapidly, it was only by 2050 that their combined economies could eclipse the
combined economies of the current richest countries of the world.
In 2010, however, while the five BRICS countries accounted for over a quarter
of the world's land area and more than 40% of the world's population, they accounted
for only one quarter of the world gross national income.
According to a paper published in 2005, Mexico and South Korea were the
only other countries comparable to the BRICS, but their economies were excluded
initially because they were considered already more developed, as they were already
members of the OECD. The same creator of the term "BRICS" endorses the term
MINT, which includes Mexico, Indonesia, Nigeria, and Turkey.
Several of the more developed of the N-11 countries, in particular Turkey,
Mexico, Indonesia and South Korea, were seen as the most likely contenders to the
BRICS. Some other developing countries that have not yet reached the N-11
economic level, such as South Africa, aspired to BRICS status.

42
 Bovespa logo
IBOVESPA(BRAZIL)
MANAGEMENT AND ECO-EFFICIENCY
The BM&FBOVESPA S.A. – Securities, Commodities, and Futures Exchange
was created in 2008 through the integration of the Brazilian Mercantile & Futures
Exchange (BM&F) and the São Paulo Stock Exchange (Bovespa).
Together, they have formed what is now one of the largest exchanges in the
world in terms of market capitalization, the second largest exchange in the Western
hemisphere, and the leading exchange in Latin America. Sustainability has been on
the BM&FBOVESPA agenda since 1996.
SUSTAINABILITY AREA
Created in November 2009, the Sustainability Department is responsible for
managing social investment projects and for encouraging and promoting socio-
environmental responsibility concepts and initiatives among the BM&FBOVESPA
stakeholders. It also helps other areas of the Exchange to incorporate sustainability
principles into their policies and practices, thereby raising the awareness of employees
and external stakeholders about this vital issue.
NOVO VALOR GOVERNANCE
The Novo Valor governance has a multidisciplinary approach. The Sustainability
Department is responsible for the organizational structure and reports to the CEO.
There is also a Sustainability Committee and a Sustainability Working Group.
BM&FBVESPA’S SUSTAINABILITY POLICY
BM&FBOVESPA’s Sustainability Policy reasserts its commitment to
sustainable development and is directed to the internal management of
BM&FBOVESPA S.A. -Brazilian Securities, Commodities and Futures Exchange
and its subsidiaries and affiliates in Brazil and abroad, and to the relations with its
various stakeholder groups.
The Policy is structured into four pillars which group together relevant
themes–Market, Environmental, Social, and Corporate Governance.

43
 To fulfill its commitment to the smooth and safe operation of the market,
BM&FBOVESPA pledges to maintain secure and efficient systems, offer innovative
products and services that add customer value, encourage the adoption of sustainable
practices by listed companies, and develop educational programs to popularize its
products and services.
To minimize the environmental impacts associated with its activities,
BM&FBOVESPA pledges to adopt eco-efficiency programs in its facilities, optimize
water, energy and paper use, and properly manage solid waste, including electronic
waste, and greenhouse gas emissions. Furthermore, the company pledges to promote
good environmental practices across its value chain and among other stakeholders,
while leveraging Brazilian Market growth by offering products, and services with an
environmental focus.
As a socially responsible company that respects its internal and external
relationships, BM&FBOVESPA pledges to attract and retain talented people,
encourage the pursuit of improvements to the quality of life, and develop its
employees. The company is also committed to fostering good social practices across
its value chain and among other stakeholders, to promoting private social investment,
and to encouraging volunteerism.
Given its commitment to best corporate governance practices and its strong
belief that this is a way of creating shareholder value, BM&FBOVESPA is duty-
bound to promote, induce, and assure good transparency and accountability practices,
guarantee efficient risk management, promote the adoption of codes of conduct, and
assure the protection of shareholder rights.
WHAT THE EXCHANGE DOES
BM&FBOVESPA is a company that manages the organized securities and
derivatives markets, providing registration, clearing and settlement services. It acts as
central counterparty, guaranteeing financial liquidity for the trades executed in its
environments.
The Exchange offers a wide range of products and services such as spot FX,
equities and fixed-income securities trading, as well as trading in derivatives contracts
based among other things on equities, financial securities, indices, rates, commodities,
and currencies. It lists companies and other issuers, is a securities depository, has a
securities lending service and licenses software.

44
 BM&FBOVESPA has a diversified and integrated trading model offering a
complete custody system. Trading takes place in an exclusively electronic
environment. The Exchange enables customers to trade equities, to hedge and to
execute arbitrage, investment diversification, allocation and the leveraging of
positions.
REPORTS
Reports are published presenting companies’ results and targets and are an
important point of reference for investors’ decision-making.
The global trend is towards including socio-environmental as well as
economic-financial aspects in these reports. This demonstrates an understanding that
corporate governance and the three-pronged sustainability approach are also key
elements in investment decisions and in pricing financial assets.
GREENHOUSE GAS (GHG) INVENTORY
Inventories of organizations’ direct and indirect greenhouse gas emissions are
instruments that permit self-assessment. They also demonstrate corporate concern, the
shouldering of responsibility and engagement with climate change questions,
transforming discourse into responsible attitude. BM&FBOVESPA has made an
inventory of its greenhouse gas emissions since 2009. Since 2010 it has been audited
externally and the document has been included in the Public Registry of the Brazil
GHG Protocol Program, where it can be seen and downloaded.
In 2013, BM&FBOVESPA announced that it will annually compensate its
greenhouse gas (GHG) emissions that it has been unable to reduce, thus becoming
carbon neutral. This process dates back to 2011 and 2012 and seeks among other
things to encourage the adoption of best practices in sustainability by listed companies
and by the market in general.

45
 BOARD OF DIRECTORS: IBOVESPA
Sr NAMES DESIGNATION
No
1 Pedro Pullen Parente Chairman of the board (Independent
2 Marcelo Fernandez Trindade Director)
Vice-Chairman of the Board
3 André Santos Esteves (Independent Director)
Director
4 Charles Peter Carey Director
5 Independent Director Claudio Luiz da Silva Haddad
6 José de Menezes Berenguer Director
7 DANIELNeto
Luiz gleizer Director
8 José Roberto Mendonça de Independent director
9 BarrosFigueiredo
Luiz Fernando Independent Director
10 Luiz Nelson Guedes de Independent Director
Carvalho

MICEX logo
MICEX (MOSCO INTERBANK CURRENCY EXCHANGE)
(RUSSIA)
MISSION
Offering financial market participants a full set of competitive trading,
clearing, settlement, depository, and information services that correspond to the world
financial center standards and meet the demands of the market participants and
shareholders with the aim of creating an integrated infrastructure of the Russian
market.
OUR VALUES
We are one team. We are dynamic, innovative, ambitious, and result-oriented.

SOCIAL RESPONSIBILITY AND CHARITY

As the institution at the heart of the Russian financial markets infrastructure,
Moscow Exchange is committed to supporting programs to improve the public’s
financial literacy and develop the local securities market. In addition, the Exchange is
actively involved in charitable programs that channel funds to those in need,
particularly children.

46
 Moscow Exchange laid the foundation of its charitable giving policy in 2012
with the adoption of a corporate policy on charity. We are committed to ensuring that
our social responsibility projects produce long-term results.

IMPROVING FINANCIAL LITERACY

Moscow Exchange regards improving the financial literacy of the population
as one of its objectives. For this purpose, we are in constant partnership with the
Expert Group on Financial Education at FSFM and other organizations, and we act as
organizers and partners of numerous events aimed at enhancing financial literacy. We
enthusiastically support educational efforts in Russia’s regions. In 2012, we
conducted the All-Russian Financial Awareness Conference as well as Financial
Awareness Days in Russia’s Regions (Ulyanovsk, Samara, and Arkhangelsk
Regions). At the invitation of the local administration, similar events were held in the
Krasnodar Region. Training workshops and trainings for young investors were also
arranged in Rostov-on-Don, Vladivostok, Yekaterinburg, Samara, Stavropol,
Krasnodar, Novosibirsk, St. Petersburg, and Nizhny Novgorod.
Another important direction is youth outreach. Moscow Exchange cooperates
with schools, colleges, and universities on an ongoing basis. In 2012, around 3,000
university students and schoolchildren visited our Museum of Exchange History.
Lectures and workshops were held directly in financial companies, universities, and
schools. Representatives of the Exchange took part in the Financial Literacy Forum
for Moscow Senior High School Students and were on the jury of the All-Russian
Contest of Students" Literacy Awareness Papers. Moscow Exchange has supported
the Kostroma international youth camp of financial literacy in the Nizhny Novgorod
Region for several years. Exchange employees visit the camp to deliver lectures, to
hold workshops and facilitate business games.
PARTNERSHIP WITH HIGHER EDUCATIONALINSTITUTIONS
Strategic partnerships with Russia’s leading technical and economic higher
educational institutions are an important aspect of the Exchanges CSR policy. The
Higher Educational Institutions Cooperation Program provides targeted training of
highly qualified personnel for the Exchange and the entire industry and facilitates the
implementation of R&D projects in Economics and Technology.

47
 In 2012, cooperation agreements in educational, scientific, and consulting
fields were signed with the Higher School of Economics, Plekhanov Russian
Economic University, and the Russian National Economics and Public Service
Academy of the Russian President. We conduct joint research and development on
securities market development with these higher educational institutions and we
cooperate on research and practical issues surrounding the creation of an International
Financial Center. A major aspect of this cooperation is the development of practically
oriented programs for training financial market specialists.
The Exchange maintains close ties with technical higher educational
institutions through many years of partnership. We supervise the Mathematical
Software Systems Department in the Moscow Engineering and Physical Institute,
which educates specialists in Computer Technologies for Exchange and Banking
Systems. In 2012, we signed a cooperation agreement with the Moscow Physical and
Technical Institute and founded a joint laboratory, Moscow Exchange/Phys Tech, to
conduct scientific and applied projects. Students work actively on the Exchange’s
objectives, conduct internships, and have the opportunity to implement their projects
jointly with the Exchange’s employees. Some developments and innovations have
already been introduced at the Exchange.

CHARITABLE GIVING
Support of orphans and children in need is a key element of Moscow
Exchange’s CSR program. As part of our program of charitable giving to children,
funds were donated in 2012 to projects of a number of charitable organizations,
including:
 Children’s Home Foundation: assistance in organizing Cheburashka’s Birthday,
an annual charitable event that gathers more than 1,000 orphaned and disabled
children;
 Volunteers to Aid Orphan Children Foundation: assistance in holding a football
tournament among orphanages;
 Illustrated Books for Blind Children, a regional charitable non-governmental
foundation: printing books for children with impaired vision;
 Perspective, a Nizhny Novgorod regional non-governmental organization:
repairs and purchases new equipment for children’s recovery;

48
 Pilgrim, an inter-regional non-governmental organization of disabled persons:
assistance in arranging for exchanges between Russian and German disabled
youth;
 Vera, a charitable foundation for hospices: assistance to children as part of the
Assistance to Children charitable program.
Additionally, financial aid was provided to the Who If Not Me charitable
foundation, the National Social Foundation, the Union of Charitable Organizations of
Russia, and the Kurmysh Children’s Asylum (a state public institution). Funds were
also allocated for urgent assistance to the victims of the flood in Kurymsk
MANAGEMENT TEAM
BOARD OF DIRECTORS: MICEX
S No: NAME DESIGNATION
Chairman of the Executive Board and
1 Alexander Afanasiev
CEO
Deputy Chairman of the Executive
2 Andrey Shemetov
Board
Chief Financial Officer (CFO),
3 Evgeny Fetisov
Member of the Executive Board
Chief Information Officer (CIO),
4 Sergei Poliakoff
Member of the Executive Board

49
 NSE logo
NATIONAL STOCK EXCHANGE (INDIA)
The National stock exchange (NSE) is India's leading stock exchange covering
various cities and towns across the country. NSE was set up by leading institutions to
provide a modern, fully automated screen-based trading system with national reach.
The Exchange has brought about unparalleled transparency, speed & efficiency,
safety and market integrity. It has set up facilities that serve as a model for the
securities industry in terms of systems, practices, and procedures.
NSE has played a catalytic role in reforming the Indian securities market in
terms of microstructure, market practices and trading volumes. The market today uses
state-of-art Information technology to provide an efficient and transparent trading,
clearing and settlement mechanism, and has witnessed several innovations in
products & services viz. demutualization of stock exchange governance, screen based
trading, compression of settlement cycles, dematerialization and electronic transfer of
securities, securities lending and borrowing, professionalization of trading members,
fine-tuned risk management systems, emergence of clearing corporations to assume
counterparty risks, market of debt and derivative instruments and intensive use of
information technology.
PURPOSE
Committed to improve the financial well-being of people.
VISION
To continue to be a leader, establish global presence, facilitate the financial
well being of people.
VALUE
NSE is committed to the following core values:
 Integrity
 Customer focused culture
 Trust, respect and care for the individual
 Passion for excellence
 Teamwork

50
HISTORY AND MILESTONE
NSE was promoted by leading financial Institutions at the behest of the
Government of India and was incorporated in November 1992 as a tax-paying
company unlike other stock exchanges in the country.
2011-2015
HISTORY AND MILE STONE 2011-15
Commencement of trading of CNX Nifty Futures on
24-Mar-14
OSE.
NSE Launches NVIX Futures – Futures on India VIX
February26,2014
index.
21-Jan-14 NSE Launches ‘NSE Bond Futures II’
NSE launches the first dedicated Debt Platform on the
13-May-13
Exchange
Agreement on Launch of S&P CNX Nifty Futures in
10-Jan-13
Japan
3-Jan-13 NSCCL Rated CCR AAA for fifth consecutive year
September18,2012 NSE launches SME operations
NSE launches financial literacy initiative ' Jagruti' in
27-Jun-12
Mohali, in partnership with India Post
3-May-12 Futures and options contracts on FTSE 100
NSE and India Post start Unique Financial Inclusion
22-Mar-12
Initiative "Jagruti"
14-Mar-12 NSE launches “EMERGE” - SME Platform
NSCCL Rated “CCR AAA” for fourth consecutive year - 28th
Dec-11
Dec 2011
Launch of derivatives on CNX PSE and CNX
Sep-11
Infrastructure Indices
Aug-11 Launch of derivatives on Global Indices
Commencement of trading in 91 Day GOI Treasury
July, 2011
Bill – Futures
January, 2011 NSE receives "Financial Inclusion" Award.

AWARDS & RECOGNITION

Ms. Chitra was selected as the woman of the year, in the business
leadership awards by the Forbes magazine recently and is also ranked 17th in the list
of top global women business leaders by Fortune Magazine USA. She is the second
most powerful businesswoman in India in this list. She has also been featured in the
list of top 30 women achievers by the Business Today group, for the last four
successive years. She is the third woman CEO to head an Exchange in the Asia-
Pacific region.

51
NSCCL RATED “CCR AAA” FOR THE FOURTH
CONSECUTIVE YEAR-28TH DEC 2011
For fourth consecutive year CRISIL has assigned its highest corporate credit
rating of ‘CCR AAA’ to the National Securities Clearing Corporation Ltd (NSCCL).
'CCR AAA' rating indicates highest degree of strength with regard to honoring debt
obligations. As per CRISIL the rating reflects NSCCL’s status as Clearing
Corporation for NSE. The rating also factors in NSCCL’s rigorous risk management
controls and adequate settlement guarantee cover.
CRISIL has further stated that NSCCL’s risk management system is
comprehensive, and is regularly upgraded to pre-empt market failures. The company
addresses risks in clearing and settlement with its stringent norms for selection of
members, robust margining system, and risk-based position limits and surveillance
mechanism.
NSE AND NSCCL RECEIVED ‘ASIAN BANKER AWARD’
NSE has been awarded 'The Asian Banker Financial Derivative Exchange of the
Year Award" NSCCL has been awarded 'The Asian Banker Clearing House of the
Year Award"
NSE awarded Derivative Exchange of the year. The award recognizes best
practice, quality service, and innovation in derivatives and risk management in the
Asia-Pacific region. The winning institutions are those that, over the past year, have
responded best in the needs of their clients, both on the asset and liability side, along
with the end-users that have demonstrated outstanding trading and risk management
strategies.
'Asia Risk' is the only publication dedicated solely to the business of financial
risk management and the derivatives market in the Asia-Pacific region since 1995.
Corporate Bonds

52
Board of director of NSE India
SR NAME OF THE COMPANY DESIGNATION
1 Mr.S.B.Mathur,Former Chairman Chairman
NO
2 Mr.RaviNarain, Former Managing Vice Chairman
Life Insurance Corporation of India
3 Ms.ChitraRamkrishna Managing Director
Director & CEO (Shareholder Directo
4 Mr.AbhayHavaldar Shareholder Director
National Stock Exchange of India & CEO
5 National Stock Exchange
Mr.S.B.Mainak, Managingof India
Director r) Director
Shareholder
Managing Director - General
6 Limited Chairman
Mr.Y.H.Malegam, Public
Life InsuranceLimited
Corporation of India
7 Dr.KRSMurthy LLC
Atlantic Professor & Public Interest
Emeritus Interest Director
8 Mr.PrakashParthasarathy, Chief Shareholder Director
Former Director Director
9 M/s. S. B. Billimoria
Dr.S.Sadagopan, Director &
Indian Public Interest
Investment Officer
10 Indian
Mr. Institute
Justice of Management,
B.N.Srikrishna(Retd.) Public Interest
Co., Chartered Accountants
Institute Director
11 Azim Premji Investment Private
Mrs.PratimaM.Umarji,Former Prin Public Interest
Bangalore
Former Judge, Supreme Court of Director
of Information Technology,
Limited
cipal Secretary(Legislation) Director
India
Bangalore
Government of Maharashtra

Shanghai, China logo

SHANGHAI STOCK EXCHANGE (CHINA)
The Shanghai Stock Exchange (SSE) was founded on Nov 26th, 1990 and in
operation on Dec.19th the same year. It is a membership institution directly governed
by the China Securities Regulatory Commission (CSRC). The SSE bases its
development on the principle of "legislation, supervision, self-regulation and
standardization" to create a transparent, open, safe and efficient marketplace. The SSE
endeavors to realize a variety of functions: providing marketplace and facilities for the
securities trading; formulating business rules; accepting and arranging listings;
organizing and monitoring securities trading; regulating members and listed
companies.
After several years' operation, the SSE has become the most preeminent stock
market in Mainland China in terms of number of listed companies, number of shares
listed, total market value, tradable market value, securities turnover in value, stock
turnover in value and the T-bond turnover in value. As at the end of 2012, there were
954 listed companies on SSE, with 26 new listings in 2012. By the end of the year,
there were 998 listed stocks on SSE with a total market capitalization of RMB
15,869.844 billion, decreasing by 6.96% year-on-year, and free-float market
capitalization of RMB 13,429.445 billion, up 9.31% from the previous year. The year-
end total share capital of all the listed companies reached 2,461.76 billion shares, of
which 1,952.13 billion shares or 79.30% were tradable. A large number of companies

53
from key industries, infrastructure and high-tech sectors have not only raised capital,
but also improved their operation mechanism through listing on Shanghai stock
market.
Entering the new century, SSE is faced with great opportunities as well as
challenges to further boost the market construction and regulation. Combining the
cutting-edge hardware facilities, favorable policy conditions in Pudong, exemplary
role of Shanghai economy, SSE is fully committed to the goal of State-owned
industrial enterprises reform and developing Shanghai into an international financial
centre with great confidence.
THE FUNCTIONS OF VARIOUS DEPARTMENTS
 GENERAL ASSEMBLY
The supreme authority is of the Shanghai Stock Exchange
 BOARD OF GOVERNORS
The decision-making body is of the Shanghai Stock Exchange
 BOARD OF SUPERVISORS
The supervisory body of the SSE is independently exercising the rights of
supervision by law
 EXECUTIVE OFFICE
Internal coordination and administration are controlled here
 HUMAN RESOURCES DEPARTMENT (CPC
ORGANIZATIONAL AFFAIRS DEPARTMENT)
Human resources management and development team building of CPC members
 CPC COMMITTEE OFFICE
Manage CPC-related affairs, publicity, and affairs of the SSE Labour Union
 DISCIPLINARY INSPECTION OFFICE
Disciplinary inspection and efficiency are monitored
 TRADING MANAGEMENT DEPARTMENT
Arranging and managing daily trading, ensuring normal operation of the
electronic trading system, introducing new products and new means,
providing trading support for members, and steering OTC market building

54
 OFFERING AND LISTING DEPARTMENT
Conducting market promotion to pre-IPO companies and providing
services, including asset reorganization, to listed companies, reviewing IPO
application materials of issuers, arranging for listing, allotment of shares, and
rights issue, and approving refinancing etc.
 LISTED COMPANY SUPERVISION DEPARTMENT I
Supervising information disclosure of listed companies and punishing
illegal acts
 LISTED COMPANY SUPERVISION DEPARTMENT
II
Supervising accounting matters, corporate governance, social
responsibility, and internal control of listed companies
 MEMBERSHIP DEPARTMENT
Manages membership, supervising members, and their trading-related
business, and monitors the financial position of members
 BOND MARKET DEPARTMENT
In charge of the planning of the bond market, bond offering and listing,
daily supervision, and safe operation of bond trading, so as to nurture and
develop the exchange bond market.
 TGLOBAL BUSINESS DEVELOPMENT
DEPARTMEN
Enhances international exchanges and cooperation, facilitates overseas
business trips, conducting research into overseas markets, and launches
overseas market promotion
 FUND AND DERIVATIVE MARKET DEPARTMENT
In charge of the R&D, and promotion of funds and derivatives, daily
supervise and safe operation of fund, and derivatives trading, so as to nurture
and develop the exchange fund, and derivative market
 MARKET SURVEILLANCE DEPARTMENT
Monitoring the market in real time, timely discovering, investigating
and curbing abnormal trading and violations

55
 LEGAL AFFAIRS DEPARTMENT
In charge of the legal affairs of the SSE, formulation of business rules,
research of laws, compliance auditing and external legal affairs
 INVESTOR EDUCATION DEPARTMENT
Conducting investor education, providing market service, and training,
enhancing investor risk awareness as well as the service of the SSE
 SYSTEM OPERATION DEPARTMENT
Operating, monitoring, arranging and maintaining the technology
infrastructure and system, and ensuring safe operation
 TECHNOLOGY DEVELOPMENT DEPARTMENT
Develops technology systems, provides support for system
application, customizing system functions to business demands, and optimizes
system performance and framework in compliance with the SSE technology
planning
 TECHNOLOGY PLANNING AND SERVICES
DEPARTMENT
Plans the function, framework, configuration, and interface of the SSE
technology systems, and infrastructure, and the strategy of the information
security, tracks the changes of the strategy, conducts technical tests, and
simulations, constantly enhances the technology service for the SSE, and its
market participants
 INFORMATION CENTER
Compiling and disseminating the SSE indices and market statistical
statements, collecting, storing and making backup of business data of the SSE,
and planning and managing the SSE data and information
 BEIJING CENTER
Providing liaison and logistics support in Beijing, collecting
information for the SSE, and facilitating market promotion in North China

 FINANCE DEPARTMENT

56
 In charge accounting auditing, internal financial management, and
supervise of the SSE, and tax management
 RISK CONTROL AND INTERNAL AUDIT
DEPARTMENT
Coordinates internal risk control, and management, conducts internal
compliance auditing, ensuring the safe, regulated, and efficient operation of
the SSE
 INFRASTRUCTURE CONSTRUCTION TEAM
In charges the construction of the SSE new office building
 SSE DEVELOPMENT & RESEARCH CENTER
Formulating the SSE Strategic Development Plan, conducting
economic, and financial researches and financial innovative experiments, and
providing technical support, professional training, and service on the capital
market
 SHANGHAI SECURITIES TELECOMMUNICATION
CO. LTD
Planning, constructing and managing the SSE satellite communication
network and providing stable, reliable and high-speed transmission channels
for market data and information
 SSE INFO NET CO. ,LTD
` Implementing the SSE Internet Strategic Plan, building and
maintaining the SSE official website, information service system, and CA
centre of the securities industry, and marketing the SSE information resources

57
 BOARD OF DIRECTORS
BOARD OF DIRECTORS: SHANGHAI
Sr NAME COMPANY
1 Alexey Kudrin Open Joint Stock Company Moscow Exchange
No
2 Sergey Lykov State Corporation Bank for Development and
MICEX-RTS
3 Andrey Golikov Open Joint Stock Company Moscow Exchange
Foreign Economic Affairs (Vnesheconombank)
4 Rainer Riess Deutsche Boerse AG
MICEX-RTS
5 Bella Zlatkis Sberbank of Russia OJSC
6 Yuriy Denisov Open Joint Stock Company Moscow Exchange
7 Kirill Shershun CentroCredit Joint Stock Commercial Bank
MICEX-RTS
8 Mikhail Bratanov Société Générale Securities Services SA
9 Nicola Beattie Open Joint Stock Company Moscow Exchange
10 Anatoly IBS Group Holding Limited
MICEX-RTS
11 Sean Glodek Russian Direct Investment Fund
Karachinsky
12 Yuan Wang Open Joint Stock Company Moscow Exchange
13 Valery Goreglyad Open Joint Stock Company Moscow Exchange
MICEX-RTS
14 Segey Kozlov Open Joint Stock Company Moscow Exchange
MICEX-RTS
15 Andrey Belinsky Open Joint Stock Company Moscow Exchange
MICEX-RTS
16 Olga Romantsova Open Joint Stock Company Moscow Exchange
MICEX-RTS
MICEX-RTS

KOSPI (SOUTH KOREA)

Kospi, South Korea logo

VISION
The KRX, which aims to be a 'World-Class Premier Exchange', is making
concerted efforts to establish an orderly capital market and achieve sustainable growth
through providing trustworthy services for the society and building up effective and
stable systems and infrastructure.

58
 ORGANIZATION

HISTORY
 2014
Mar 24 Launched KRX Gold Spot Market
Mar 3 Launched CCP services for OTC derivatives products
 2013
Jul 2 Launched KONEX Market
 2012
Mar 30 Launched Petroleum Spot Market
 2011
Jul 11 Established Cambodia Stock Exchange (KRX holds 45% of the
company shares)
Jan 11 Established Laos Stock Exchange (KRX holds 49% of the company
shares)
 2010
Sep 13 Launched Mini-Gold Futures Market
Aug 30 Launched Night-time Trading of KOSPI200 Options on Eurex
 2009

59
 Nov 16 Launched Nighttime Trading of KOSPI200 Futures on CME Globex
Sep 21 KRX reclassified to FTSE Developed Indices Group
July 29 Listing of ETF tracking 3-yr KTB

 2008
July 21 Listing of Lean Hog Futures
May 6 Listing of Single Stock Futures
Apr 24 Opened of KRX Beijing Representative Office
Feb 25 Listing of 10-yr KTB Futures
 2007
Oct 10 Listing of foreign ETF for the first time
Aug 17 Listing of foreign company for the first time
 2006
May 26 Launched Yen & Euro Futures
 2005
Dec 1 Launched ELW Market
Jun 1 Began to publish the KRX 100 Index
Jan 27 Incorporation of the Korea Exchange
 2004
Feb 25 The KSE launched the Inter-Dealer Repo Market
Jan 28 The KSE launched Equity Options
 1999
Mar 29 The KSE opened the Inter-Dealer Market for government bonds
Feb 6 The KFE established
 1998
Oct 12 The KOSDAQ Committee established
 1997
Jul 7 The KSE launched the stock Index Options
 1996
May 17 The KOSDAQ Stock Market established
May 3 The KSE launched the Stock Index Futures
 1994
Jun 15 The KSE started publishing the KOSPI 200 Index (Jan. 3, 1990=100)
 1992

60
 Jan 3 Direct portfolio investment by foreign investors allowed
 1988
Mar 1 The KSE privatized and incorporated into a membership organization

 1979
Sep 24 The KSE joined the International Federation of Stock Exchanges
(FIBV),
currently the World Federation of Exchange (WFE)
 1977
Sep 20 The Korea Securities Computer Corporation (KOSCOM) incorporated
 1974
Dec 6 The Korea Securities Depository (KSD) established
 1963
May 3 The KSE reorganized into a government-run, non-profit corporation
 1962
Apr 1 The KSE reorganized into a joint stock corporation
 1956
Mar 3 The Daehan Stock Exchange, the predecessor of the
Korea Stock Exchange (KSE), established

FORMULAE USED FOR CALCULATIONS IN DATA ANALYSIS

 Change=Current month close-Previous month close
 %change=Change/Previous month close*100
 Annual Return=Last month close-First month close
 %Annual Return=Annual Return/First month close*100
 Mean=Annual Return/No. of months
 %Mean=%Annual Return/No. of months
 Standard Deviation=√(∑((x–xi)2/(n-1)))
 Relative Standard Deviation=Standard Deviation/Average
 Sharpe Ratio=(%Annual Return-Risk Free Return)/Relative Standard Deviation

61
 DATA ANALYSES AND INTERPRETATION
FUNDS OF THE STUDY:
In the study funds are used to evaluate the performance of the Mutual Funds
with Benchmark. They are:
RELIANCE GROWTH FUND:
OBJECTIVE:
Reliance Growth Fund seeks to generate capital appreciation & provide long-
term growth opportunities by investing in a portfolio constituted of equity & equity
related securities of top 100 companies by market capitalization & of companies
which are available in the derivatives segment from time to time and the secondary
objective is to generate consistent returns by investing in debt and money market
securities.
Structure: Open-ended Diversified Equity Scheme
Inception Date: May 07, 2006
Plans and Options under the Plan: Dividend, Growth.
Face Value (Rs/Unit): Rs. 10
Minimum Investment: Rs.5000.
Entry Load: For Subscription below Rs. 2 crore - 2.25%.
For subscription of Rs. 2 crores & above and below Rs. 5 crore - 1.25%.
For Subscription of Rs. 5 crore & above - Nil
Exit Load: Nil.

HDFC Equity Fund

Objective:
To achieve capital appreciation by investing primarily in equity oriented
securities.
Structure: Open-ended Growth Scheme
Inception Date: January 01, 1995
Plans and Options under the Plan: Growth & Dividend Option.
Face Value (Rs/Unit): Rs. 10
Minimum Investment: For new investors: Rs.5000 and in multiples of Rs.100
thereafter.

62
For existing investors: Rs. 1000 and in multiples of Rs. 100 thereafter.

Entry Load: For investments below Rs. 5 crores, Entry load is 2.25%.
For Investments of Rs. 5 crores and above, Entry Load is Nil.
Exit Load: Nil.
UTI Equity Fund:
OBJECTIVE:
Capital appreciation through investments in Equities and Equity related
instruments, convertible debentures, derivatives in India and also in overseas markets.
Structure: Open Ended Equity Fund
Inception Date: April 20, 1992
Plans and Options under the Plan: Growth Option, Income Option
Face Value (Rs/Unit): Rs. 10
Minimum Investment: Rs. 5,000/-
Entry Load: 2.25% for < Rs.2 crores; Nil for >= Rs.2 crores.
Exit Load: Nil
BIRLA SUN LIFE EQUITY FUND:
OBJECTIVE:
To provide long term capital appreciation through a portfolio with target
allocation of 90 percent in equity.
Structure: Open Ended Equity Scheme
Inception Date: August 27, 1998
Plans and Options under the Plan: Dividend, Growth
Face Value (Rs/Unit): Rs. 10
Minimum Investment: Rs.5000.
Entry Load: 2.25% for amount < 5 crores. Nil, for amount > 5 crore. Exit Load: Nil.

63
 Table:1 Represents the performance of NIFTY for the year 2011
For the Month of Index % Change
Jan 5505.90 -
Feb 5333.25 -3.14
Mar 5833.75 9.38
Apr 5749.50 -1.44
May 5473.10 -4.81
Jun 5647.40 3.18
Jul 5482.00 -2.93
Aug 5001.00 -8.77
Sep 4943.25 -1.15
Oct 5326.60 7.76
Nov 4832.05 -9.28
Dec 4624.30 -4.30
Annual Return -15.50
Mean -1.41
Percentage Standard Deviation 6.03
Sharpe Ratio -3.69

NIFTY For the year of 2011

15.00

10.00

5.00

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5.00

-10.00
NIFTY
-15.00

INTERPRETATION:
From the above data, it was observed that the Index value has decreased
continuously from first April to September 2011 and then it increased to a certain
level, later again it started decreasing. Its overall performance was not satisfactory.
Here the Annual Return generated on investment i.e. -15.50% which indicates
negative return and the volatility was calculated with the Standard deviation i.e.
6.03% where was the Sharpe ratio (risk adjusted return) indicated negatively i.e. -
3.69%.

64
 Table:2 Represents the performance of NIFTY for the year 2012
For the Month of Index % Change
Dec-11 4624.30 -
Jan 5199.25 12.43
Feb 5385.20 3.58
Mar 5295.55 -1.66
Apr 5248.15 -0.90
May 4924.25 -6.17
Jun 5278.90 7.20
Jul 5229.00 -0.95
Aug 5258.50 0.56
Sep 5703.30 8.46
Oct 5619.70 -1.47
Nov 5879.85 4.63
Dec 5905.10 0.43
Annual Return 26.15
Mean 2.18
Percentage Standard Deviation 5.23
Sharpe Ratio 3.71

NIFTY For the year of 2012

15.00

10.00

5.00

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5.00

NIFTY
-10.00

INTERPRETATION:
From the above data, it was observed that the Index value has fluctuated from
March to May and again in October 2011. Its overall performance is moderate. Here
generated Annual Return on investment was 26.15% which indicates positive return
and the volatility was calculated with the Standard deviation i.e. 5.23% where as the
Sharpe ratio (risk adjusted return) was indicated negatively i.e. -3.71%.

65
 Table:3 Represents the performance of NIFTY for the year 2013
For the Month of Index % Change
Dec-12 5905.10 -
Jan 6034.75 2.20
Feb 5693.05 -5.66
Mar 5682.55 -0.18
Apr 5930.20 4.36
May 5985.95 0.94
Jun 5842.20 -2.40
Jul 5742.00 -1.72
Aug 5471.80 -4.71
Sep 5735.30 4.82
Oct 6299.15 9.83
Nov 6176.10 -1.95
Dec 6304.00 2.07
Annual Return 7.59
Mean 0.63
Average 0.63
Percentage Standard 4.38
Sharpe Ratio 0.19
Deviation

NIFTY For the year of 2013

15.00

10.00

5.00

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5.00
NIFTY
-10.00

INTERPRETATION:
From the above data, it was observed that the Index value has fluctuated from
the month of February to August later it was increased up to certain level and
afterwards it’s declined in 2013. Its overall performance was not up to the mark. Here
generated Annual Return on investment was 7.59% which indicated positive return
and the volatility calculated with the Standard deviation i.e. 4.38% where as the
Sharpe ratio (risk adjusted return) was indicated positively i.e. 0.19%.

66
 Table:4 Represents the performance of NIFTY for the year 2014
For the Month of Index % Change
Dec-13 6304.00 -
Jan 6089.50 -3.40
Feb 6276.95 3.08
Mar 6704.20 6.81
Apr 6696.40 -0.12
May 7229.95 7.97
Jun 7611.35 5.28
Jul 7721.30 1.44
Aug 7954.35 3.02
Sep 7964.80 0.13
Oct 8322.20 4.49
Nov 8588.25 3.20
Dec 8282.70 -3.56
Annual Return 28.33
Mean 2.36
Percentage Standard 3.64
Sharpe Ratio 5.92
Deviation

NIFTY For the year of 2014

10.00
8.00
6.00
4.00
2.00
0.00
-2.00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-4.00
NIFTY
-6.00

INTERPRETATION:
From the above data, it was observed that the Index value was quiet
satisfactory to the investors from February to November, except in the months of
April and December Where it was negatively performed in the year 2014. On an
average it has performed well. It was notice that generated annual return on
investment i.e. 28.33%. Where risk was calculated with the Standard deviation i.e.
3.64% where as the Sharpe ratio (risk adjusted return) was negatively noted i.e.
5.92%.

67
 Table:5 Represents the performance of NIFTY for the year 2015
For the Month of Index % Change
Dec-14 8282.70 -
Jan 8808.90 6.35
Feb 8844.60 0.41
Mar 8491.00 -4.00
Apr 8181.50 -3.65
May 8433.65 3.08
Jun 8368.50 -0.77
Jul 8532.85 1.96
Aug 7971.30 -6.58
Sep 7948.90 -0.28
Oct 8065.80 1.47
Nov 7935.25 -1.62
Dec 7946.35 0.14
Annual Return -3.48
Mean -0.29
Percentage Standard Deviation 3.45
Sharpe Ratio -2.97

NIFTY For the year of 2015

10.00

5.00

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5.00

NIFTY
-10.00

INTERPRETATION:
From the above data, it was observed that the Index value has drastically
fluctuated from March to November. On an average it has not performed well. It
noticed that annual return on investment was negative i.e. -3.48% where risk was
calculated by the Standard deviation -0.29% where as the Sharpe ratio (risk adjusted
return) was negatively noted i.e. -2. 79%.

68
 Table:6 Represents Performance of Equity Funds For the year of 2011
Reliance HDFC Birla UTI
For the Month NAV % NAV % NAV % NAV %
Sun
Jan 475.41 - 282.22 - 289.47 - 55.38 -
of Change Change Change Change
Feb 446.59 -6.06 269.28 -4.58 Life
253.45 -12.44 52.36 -5.45
Mar 439.59 -1.57 268.96 -0.12 248.6 -1.91 52.73 0.71
Apr 461.43 4.97 282.66 5.1 265.21 6.68 55.56 5.37
May 461.74 0.07 282.88 0.08 258.9 -2.38 55.14 -0.76
Jun 451.77 -2.16 280.64 -0.79 253.62 -2.04 54.57 -1.03
Jul 450.89 -0.19 281.05 0.15 253.45 -0.07 55.32 1.37
Aug 447.65 -0.72 277.63 -1.22 253.27 -0.07 55.33 0.02
Sep 407.39 -9 250.65 -9.72 229.95 -9.21 51.4 -7.1
Oct 401.22 -1.51 241.61 -3.61 222.18 -3.38 49.95 -2.82
Nov 424.3 5.75 253.73 5.01 233.94 5.29 52.7 5.51
Dec 391.39 -7.76 235.85 -7.04 218.41 -6.64 50.2 -4.74
Annual Return -18.18 -16.75 -26.16 -8.94
Percentage 4.64 4.54 5.65 4.08
Sharpe Ratio -5.34 -5.18 -5.83 -3.84
Standard
Beta -0.13 0.86 1.01 0.63
Deviation
Treynor 35.44 -24.57 -32.87 -19.68

Performance of Equity Funds For the year of

10.00 2011
5.00

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5.00

-10.00
Reliance HDFC Birlasunlife UTI
-15.00

INTERPRETATION:
From the above data, it was observed that the NAV (Net Asset Value)
values of Mutual Funds (Reliance, HDFC, Birla Sun Life and UTI) were
highly fluctuated. The overall performances of the funds were not satisfactory.
It has noted that return generated on the investments are -18.18%, -16.75%,
26.16% and -8.94% and the volatility was calculated with the standard
deviation i.e. 4.64%, 4.54%, 5.65% and 4.08% where as the Sharpe ratio (risk
adjusted return) shows negative sign values i.e. -5.34%, -5.18%, -5.83% and -
3.84% respectively for the funds.

69
 Tabel-7: Represents Performance of Equity Funds For the year of 2012

Reliance HDFC Birla UTI

For the NAV % Change NAV % NAV % NAV %
Sun
Dec 391.39 - 235.85 - 218.41 - 50.2 -
Month of Change Change Change
Jan 364.41 -6.89 219.41 Life
-6.97 203.16 -6.98 47.37 -5.64
Feb 418.01 14.71 250.95 14.37 229.64 13.03 52.46 10.75
Mar 431.26 3.17 262.21 4.49 235.49 2.55 54.36 3.62
Apr 436.79 1.28 263.29 0.41 237.51 0.86 54.88 0.96
May 433.66 -0.72 258.53 -1.81 233.65 -1.63 54.24 -1.17
Jun 398.64 -8.08 239.44 -7.39 216.94 -7.15 50.84 -6.27
Jul 424.32 6.44 258.35 7.9 234.58 8.13 54.99 8.16
Aug 418.3 -1.42 255.74 -1.01 235.6 0.43 55.38 0.71
Sep 419.74 0.34 248.13 -2.97 236.23 0.27 55.37 -0.02
Oct 467.88 11.47 278.46 12.22 259.93 10.03 59.87 8.13
Nov 465.63 -0.48 274.16 -1.55 258.91 -0.39 59.67 -0.33
Dec 498.5 7.06 287.76 4.96 270.59 4.51 61.87 3.69

Annual 26.89 22.66 23.67 22.59

Mean 2.24 1.89 1.97 1.88
Return
Average 2.24 1.89 1.97 1.88
Percentage 6.78 7 6.18 5.28
Sharpe 2.97 2.27 2.74 3
Standard
Beta -0.52 0.93 0.79 0.78
Ratio
Deviation
Treynor 39.76 15.38 15.17 13.9

50.00 Performance Equity Funds For the year of

2012
0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

-50.00 Reliance HDFC Birlasunlife UTI

INTERPRETATION:
From the above data, it was observed that the NAV (Net Asset Value) values
of Mutual Funds (Reliance, HDFC, Birla Sun Life and UTI) were moderately
fluctuated. The overall performances of the funds were performed well. It has noted
that return on the investments are 26.89%, 22.66%, 23.67% and 22.59% and the risk
is calculated with the standard deviation i.e. 4.64%, 4.54%, 5.65% and 4.08% where
as the Sharpe ratio (risk adjusted return)shows values i.e. 2.97%, 2.27%, 2.74% and
3.00% respectively for the funds.

70
 Table:8 Represents Performance of Equity Funds For the year of 2013

Reliance HDFC Birla UTI

For the NAV % NAV % NAV % NAV %
12-Dec 498.5 - 287.76 - Sun
270.59 - 61.87 -
Month
Jan of 505.38 Change
1.38 296.88 Change
3.17 278.57 Change
2.95 63.06 Change
1.92
496.16 298.9
Life
276.57 63.26
Feb -1.82 0.68 -0.72 0.32
Mar 453.56 -8.59 275.81 -7.72 258.27 -6.62 59.97 -5.2
Apr 443.71 -2.17 272.43 -1.23 254.71 -1.38 59.24 -1.23
May 457.34 3.07 285.12 4.66 266.68 4.7 62.57 5.62
Jun 450.52 -1.49 281.69 -1.2 260.51 -2.31 62.4 -0.26
Jul 438.14 -2.75 272.43 -3.29 256.46 -1.55 61.62 -1.25
Aug 399.74 -8.77 250.8 -7.94 242.15 -5.58 60.08 -2.5
Sep 408.72 2.25 246.13 -1.86 241.81 -0.14 58.14 -3.23
Oct 423.89 3.71 257.91 4.79 255.68 5.74 60.93 4.8
Nov 464.58 9.6 289.54 12.26 281.36 10.04 65.68 7.8
Dec 474.49 2.13 292.97 1.19 285.37 1.43 65.25 -0.66
Annual -3.44 3.5 6.55 6.14
Mean -0.29 0.29 0.55 0.51
Return
Average -0.29 0.29 0.55 0.51
Percentage 5.17 5.61 4.75 3.86
Sharpe -1.97 -0.58 -0.04 -0.16
Standard
Beta 0.4 0.94 0.76 0.69
Ratio
Deviation
Performance of Equity Funds For the year
15.00 of 2013
10.00

5.00

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5.00

-10.00 Reliance HDFC Birlasunlife UTI

INTERPRETATION:
From the above data, it was observed that the NAV (Net Asset Value) values
of Mutual Funds (Reliance, HDFC, Birla Sun Life and UTI) were moderately
fluctuated. The overall performances of the funds were performed well. It has noted
that return on the investments are 26.89%, 22.66%, 23.67% and 22.59% and the risk
is calculated with the standard deviation i.e. 4.64%, 4.54%, 5.65% and 4.08% where
as the Sharpe ratio (risk adjusted return)shows values i.e. 2.97%, 2.27%, 2.74% and
3.00% respectively for the funds.

71
 Table:9 Represents Performance of Equity Funds For the year of 2014

Reliance HDFC Birla UTI

For the NAV % NAV % NAV % NAV %
13-Dec 474.49 - 292.97 - Sun
285.37 - 65.25 -
Month
Jan of 491.9 Change
3.67 304.88 Change
4.07 296.84 Change
4.02 67.42 Change
3.33
465.95 285.49
Life
282.33 64.63
Feb -5.28 -6.36 -4.89 -4.15
Mar 474.5 1.83 300.39 5.22 291.79 3.35 66.64 3.12
Apr 510.29 7.54 332.28 10.62 320.62 9.88 71.91 7.91
May 534 4.65 341.05 2.64 329.21 2.68 71.92 0.01
Jun 622.27 16.53 401.69 17.78 388.12 17.89 80.46 11.87
Jul 662.35 6.44 424.82 5.76 417.27 7.51 85.33 6.06
Aug 645.72 -2.51 415.75 -2.13 407.72 -2.29 85.16 -0.2
Sep 679.51 5.23 444.09 6.82 426.67 4.65 91.01 6.86
Oct 704.94 3.74 441.96 -0.48 424.28 -0.56 91.81 0.87
Nov 741.88 5.24 465.24 5.27 446.66 5.27 96.65 5.28
Dec 762.13 2.73 483.8 3.99 462.98 3.65 100.04 3.51

Annual 49.82 53.18 51.17 44.48

Mean 4.15 4.43 4.26 3.71
Return
Average 4.15 4.43 4.26 3.71
Percentage 5.34 6.12 5.9 4.28
Sharpe 8.07 7.58 7.53 8.81
Standard
Beta 0.1 0.99 0.87 0.63
Ratio
Deviation
Treynor -18.52 46.35 43.4 33.76

Represents Performance of Equity Funds For

20.00
the year of 2014

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Reliance HDFC Birla Sunlife UTI

-20.00

INTERPRETATION:
From the above data, it was observed that the NAV (Net Asset Value) values
of Mutual Funds (Reliance, HDFC, Birla Sun Life and UTI) were positively
fluctuated. The overall performances of the funds were performed well. It has noted
that return on the investments are 49.82%, 53.18%, 51.17% and 44.48% and the risk
is calculated with the standard deviation i.e. 5.34%, 6.12%, 5.90% and 4.28% where
as the Sharpe ratio (risk adjusted return)shows values i.e. 8.07%, 7.58%, 7.53% and
8.81% respectively for the funds.

72
 Table: 10 Represents Performance of Equity Funds For the year of 2015
Reliance HDFC Birla UTI
For the NAV % NAV % NAV % NAV %
14-Dec 762.13 - 483.8 - Sun
462.98 - 100.04 -
Month
Jan of 758.05 Change
-0.53 469.89 Change
-2.88 463.55 Change
0.12 99.14 Change
-0.9
823.91 489.07
Life
492.68 104.71
Feb 8.69 4.08 6.28 5.62
Mar 834.85 1.33 492.95 0.79 501.72 1.83 106.1 1.32
Apr 810.57 -2.91 474.44 -3.75 491.3 -2.08 104.11 -1.87
May 798.31 -1.51 466.97 -1.57 477.56 -2.8 100.93 -3.06
Jun 805.78 0.94 469.38 0.52 480.89 0.7 102.67 1.73
Jul 807.51 0.22 470.87 0.32 480.89 0 102.69 0.02
Aug 861.62 6.7 485.19 3.04 504.59 4.93 105.93 3.16
Sep 786.26 -8.75 436.43 -10.05 468.2 -7.21 98.51 -7
Oct 793.74 0.95 444.74 1.91 478.63 2.23 101.02 2.54
Nov 793.43 -0.04 450.83 1.37 484.44 1.21 100.9 -0.11
Dec 804.48 1.39 453.93 0.69 475.68 -1.81 99.96 -0.93

Annual 6.47 -5.54 3.42 0.51

Mean 0.54 -0.46 0.28 0.04
Return
Average 0.54 -0.46 0.28 0.04
Percentage 4.37 3.77 3.57 3.25
Sharpe Ratio -0.06 -3.26 -0.93 -1. 92
Standard
Beta -0.26 0.72 0.78 0.81
Deviation
Treynor 32.07 -14.86 -5.23 -7.81

Represents Performance of Equity Funds for

10.00
the year of 2015
0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

-10.00

Reliance HDFC Birla Sunlife UTI

-20.00

INTERPRETATION:
From the above data, it was observed that the NAV (Net Asset Value) values
of Mutual Funds (Reliance, HDFC, Birla Sun Life and UTI) were moderately
fluctuated where in the month of September shown more negative performance in the
year. The overall performances of the funds were performed moderately. It has noted
that return on the investments are 6.47%, -5.54%, 3.42% and 0.51% and the risk is
calculated with the standard deviation i.e. 4.37%, 3.77%, 3.57% and 3.25% where as
the Sharpe ratio (risk adjusted return)shows values i.e. -0.06%, -3.26%, -0.93% and -
1.92% respectively for the funds.

73
Tabel-12: Represents Comparison between Equity Funds with NIFTY For the year of
2011 (% Change)
Months NIFTY Reliance HDFC Birla UTI
Jan - - - - -
SunLife
Feb -3.14 -6.06 -4.58 -12.44 -5.45
Mar 9.38 -1.57 -0.12 -1.91 0.71
Apr -1.44 4.97 5.1 6.68 5.37
May -4.81 0.07 0.08 -2.38 -0.76
Jun 3.18 -2.16 -0.79 -2.04 -1.03
Jul -2.93 -0.19 0.15 -0.07 1.37
Aug -8.77 -0.72 -1.22 -0.07 0.02
Sep -1.15 -9 -9.72 -9.21 -7.1
Oct 7.76 -1.51 -3.61 -3.38 -2.82
Nov -9.28 5.75 5.01 5.29 5.51
Dec -4.3 -7.76 -7.04 -6.64 -4.74

Annual -15.5 -18.18 -16.75 -26.16 -8.94

Mean -1.41 -1.65 -1.52 -2.38 -0.81
Return
Percentage 6.03 4.64 4.54 5.65 4.08
Sharpe Ratio -3.69 -5.37 -5.18 -5.83 -3.84
Standard
Beta -0.13 0.86 1.01 0.63
Deviation
Treynor 35.44 -24.57 -32.87 -19.68

Comparsion between Equity Mutual Funds with NIFTY

For the year of 2011
15.00
10.00
5.00
0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5.00
-10.00
-15.00 NIFTY Reliance HDFC Birlasunlife UTI

INTERPRETATION:
From the above chart it has been observed that the mutual funds were
performed well than the Benchmark index Nifty in the year 2011. The selected mutual
fund companies outperformed NIFTY in terms of returns. There is an inverse
relationship between the selected mutual fund companies and benchmark NIFTY
index, where if the fund tends to gain simultaneously the NIFTY underperformed.

74
Tabel-12: Represents Comparison between Equity Funds with NIFTY For the year of
2012 (% Change)
Months NIFTY Reliance HDFC Birla UTI
Jan 12.43 -6.89 -6.97 -6.98 -5.64
SunLife
Feb 3.58 14.71 14.37 13.03 10.75
Mar -1.66 3.17 4.49 2.55 3.62
Apr -0.9 1.28 0.41 0.86 0.96
May -6.17 -0.72 -1.81 -1.63 -1.17
Jun 7.2 -8.08 -7.39 -7.15 -6.27
Jul -0.95 6.44 7.9 8.13 8.16
Aug 0.56 -1.42 -1.01 0.43 0.71
Sep 8.46 0.34 -2.97 0.27 -0.02
Oct -1.47 11.47 12.22 10.03 8.13
Nov 4.63 -0.48 -1.55 -0.39 -0.33
Dec 0.43 7.06 4.96 4.51 3.69
Annual 26.15 26.89 22.66 23.67 22.59
Mean 2.18 2.24 1.89 1.97 1.88
Return
Percentage 5.23 6.78 7 6.18 5.28
Sharpe Ratio 3.71 2.97 2.27 2.74 3
Standard
Beta -0.52 0.93 0.79 0.78
Deviation
Treynor 39.76 15.38 15.17 13.9

Comparsion between Equity Funds with NIFTY

20.00 For the year of 2012
10.00

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

-10.00 NIFTY Reliance HDFC Birlasunlife UTI

INTERPRETATION:
From the above chart it has been observed that the mutual funds were
performed well than the Benchmark index Nifty in the year 2012. The selected mutual
fund companies outperformed NIFTY in terms of returns. There is an inverse
relationship between the selected mutual fund companies and benchmark NIFTY
index, where if the fund tends to gain simultaneously the NIFTY underperformed.

75
Tabel-13: Represents Comparison between Equity Funds with NIFTY For the year of
2013 (% Change)
Months NIFTY Reliance HDFC Birla UTI
Jan 2.2 1.38 3.17 2.95 1.92
SunLife
Feb -5.66 -1.82 0.68 -0.72 0.32
Mar -0.18 -8.59 -7.72 -6.62 -5.2
Apr 4.36 -2.17 -1.23 -1.38 -1.23
May 0.94 3.07 4.66 4.7 5.62
Jun -2.4 -1.49 -1.2 -2.31 -0.26
Jul -1.72 -2.75 -3.29 -1.55 -1.25
Aug -4.71 -8.77 -7.94 -5.58 -2.5
Sep 4.82 2.25 -1.86 -0.14 -3.23
Oct 9.83 3.71 4.79 5.74 4.8
Nov -1.95 9.6 12.26 10.04 7.8
Dec 2.07 2.13 1.19 1.43 -0.66

Annual Return 7.59 -3.44 3.5 6.55 6.14

Mean 0.63 -0.29 0.29 0.55 0.51
Percentage 4.38 5.17 5.61 4.75 3.86
Sharpe Ratio 0.19 -1.97 -0.58 -0.04 -0.16
Standard
Beta 0.4 0.94 0.76 0.69
Deviation
Treynor -20.12 -3.68 -2.34 -3.66

Comparsion between Equity Funds with NIFTY

15.00 For the year of 2013
10.00

5.00

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5.00

-10.00
NIFTY Reliance HDFC Birlasunlife UTI

INTERPRETATION:
From the above chart it has been observed that the mutual funds were
performed well than the Benchmark index Nifty in the year 2013. The selected mutual
fund companies outperformed NIFTY in terms of returns. There is an inverse
relationship between the selected mutual fund companies and benchmark NIFTY
index, where if the fund tends to gain simultaneously the NIFTY underperformed.

76
Tabel-14: Represents Comparison between Equity Funds with NIFTY For the year of
2014 (% Change)
Months NIFTY Reliance HDFC Birla UTI
Jan -3.4 3.67 4.07 4.02 3.33
SunLife
Feb 3.08 -5.28 -6.36 -4.89 -4.15
Mar 6.81 1.83 5.22 3.35 3.12
Apr -0.12 7.54 10.62 9.88 7.91
May 7.97 4.65 2.64 2.68 0.01
Jun 5.28 16.53 17.78 17.89 11.87
Jul 1.44 6.44 5.76 7.51 6.06
Aug 3.02 -2.51 -2.13 -2.29 -0.2
Sep 0.13 5.23 6.82 4.65 6.86
Oct 4.49 3.74 -0.48 -0.56 0.87
Nov 3.2 5.24 5.27 5.27 5.28
Dec -3.56 2.73 3.99 3.65 3.51

Annual Return 28.33 49.82 53.18 51.17 44.48

Mean 2.36 4.15 4.43 4.26 3.71
Percentage Standard 3.64 5.34 6.12 5.9 4.28
Sharpe Ratio 5.92 8.07 7.58 7.53 8.81
Deviation
Beta 0.1 0.99 0.87 0.63
Treynor 18.52 46.35 43.4 33.76

Comparsion between Equity Funds with

NIFTY For the year of 2014
20.00
15.00
10.00
5.00
0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5.00
NIFTY Reliance HDFC Birla Sunlife UTI
-10.00

Interpretation:
From the above chart it has been observed that the mutual funds were
performed well than the Benchmark index Nifty in the year 2014. The selected mutual
fund companies outperformed NIFTY in terms of returns. There is an inverse
relationship between the selected mutual fund companies and benchmark NIFTY
index, where if the fund tends to gain simultaneously the NIFTY underperformed.

77
Tabel-15: Represents Comparison between Equity Funds with NIFTY For the year of
2015 (% change)
Months NIFTY Reliance HDFC Birla SunLife UTI
Jan 6.35 -0.53 -2.88 0.12 -0.90
Feb 0.41 8.69 4.08 6.28 5.62
Mar -4.00 1.33 0.79 1.83 1.32
Apr -3.65 -2.91 -3.75 -2.08 -1.87
May 3.08 -1.51 -1.57 -2.80 -3.06
Jun -0.77 0.94 0.52 0.70 1.73
Jul 1.96 0.22 0.32 0.00 0.02
Aug -6.58 6.70 3.04 4.93 3.16
Sep -0.28 -8.75 -10.05 -7.21 -7.00
Oct 1.47 0.95 1.91 2.23 2.54
Nov -1.62 -0.04 1.37 1.21 -0.11
Dec 0.14 1.39 0.69 -1.81 -0.93

Annual Return -3.48 6.47 -5.54 3.42 0.51

Mean -0.29 0.54 -0.46 0.28 0.04
Percentage 3.45 4.37 3.77 3.57 3.25
Sharpe Ratio -2.97 -0.06 -3.26 -0.93 -1.92
Standard Deviation
Beta -0.26 0.72 0.78 0.81
Treynor 32.07 -14.86 -5.23 -7.81

Comparsion between Equity Funds with

10.00 NIFTY For the year of 2015
5.00

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5.00

-10.00
NIFTY Reliance HDFC Birla Sunlife UTI
-15.00

INTERPRETATION:
From the above chart it has been observed that the mutual funds were
performed well than the Benchmark index Nifty in the year 2015. The selected mutual
fund companies outperformed NIFTY in terms of returns. There is an inverse
relationship between the selected mutual fund companies and benchmark NIFTY
index, where if the fund tends to gain simultaneously the NIFTY underperformed.

78
Table 16 : Represents Annual Return Performance of Equity Funds
YEARS Reliance HDFC Birla SunLife UTI

2011 -18.18 -16.75 -26.16 -8.94

2012 26.89 22.66 23.67 22.59
2013 -3.44 3.50 6.55 6.14
2014 49.82 53.18 51.17 44.48
2015 6.47 -5.54 3.42 0.51
Total 61.56 57.05 58.64 64.77

Annual Return Performance of Equity Funds

70.00

65.00 64.77
61.56
60.00
58.64
57.05
55.00

50.00
Reliance HDFC Birla SunLife UTI

INTERPRETATION:
From the above data, it was observed that the Percentage of Annual Return of
Mutual Funds (Reliance, HDFC, Birla Sun Life and UTI) were shown highest in the
UTI Equity Fund i.e. 26.31% and lowest was coded by HDFC Equity Fund i.e.
20.74% when compared with the other funds.

79
Table 17: Represents Standard Deviation Performance of Equity Funds
YEARS Reliance HDFC Birla SunLife UTI

2011 4.64 4.54 5.65 4.08

2012 6.78 7.00 6.18 5.28
2013 5.17 5.61 4.75 3.86
2014 5.34 6.12 5.90 4.28
2015 4.37 3.77 3.25 3.25
Total 26.31 27.04 25.73 20.74

Standard Deviation Performance of Equity

Funds
30.00
26.31 27.04 25.73
25.00
20.00 20.74

15.00
10.00
5.00
0.00
Reliance HDFC Birla SunLife UTI

INTERPRETATION:
From the above data, it was observed that the Standard Deviation of Mutual
Funds (Reliance, HDFC, Birla Sun Life and UTI) were shown highest in the Reliance
Equity Fund i.e. 26.31% and lowest was coded by UTI Equity Fund i.e. 20.74% when
compared with the other funds.

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Table 18 : Represents Sharpe Ratio Performance of Equity Funds
YEARS Reliance HDFC Birla SunLife UTI

2011 -5.37 -5.18 -5.83 -3.84

2012 2.97 2.27 0.77 0.79
2013 -1.97 4.75 2.74 3.00
2014 8.07 7.58 7.53 8.81
2015 -0.06 -3.26 -0.93 -1.92
Total 3.63 6.16 4.28 6.84

Sharpe Ratio Performance of Equity Funds

8.00
7.00 6.84
6.00 6.16
5.00
4.00 4.28
3.63
3.00
2.00
1.00
0.00
Reliance HDFC Birla SunLife UTI

INTERPRETATION:
From the above data, it was observed that the Sharpe Ratio of Mutual Funds
(Reliance, HDFC, Birla Sun Life and UTI) were shown highest in the UTI Equity
Fund i.e. 6.84% and lowest was coded by Reliance Equity Fund i.e. 3.63% when
compared with the other funds.

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Table 19 : Represents Beta Performance of Equity Funds
YEARS Reliance HDFC Birla SunLife UTI

2011 -0.13 0.86 1.01 0.63

2012 -0.52 0.93 0.79 0.78
2013 0.40 0.94 0.76 0.69
2014 0.10 0.99 0.87 0.63
2015 -0.26 0.72 0.78 0.81
Total -0.41 4.44 4.21 3.54

Beta Performance of Equity Funds

5.00
4.44
4.00 4.21
3.54
3.00

2.00

1.00

0.00
-0.41
Reliance HDFC Birla SunLife UTI
-1.00

INTERPRETATION:
From the above data, it was observed that the Standard Deviation of Mutual
Funds (Reliance, HDFC, Birla Sun Life and UTI) were shown highest in the Reliance
Equity Fund i.e. 26.31% and lowest was coded by UTI Equity Fund i.e. 20.74% when
compared with the other funds.

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Table 20: Represents Treynor Performance of Equity Funds
YEARS Reliance HDFC Birla SunLife UTI

2011 35.44 -24.57 -32.87 -19.68

2012 39.76 15.38 15.17 13.90
2013 -20.12 -3.68 -2.34 -3.66
2014 -18.52 46.35 43.40 33.76
2015 32.07 -14.86 -5.23 -7.81
Total 68.64 18.61 18.14 16.51

Performance of Equity Funds

80.00
70.00 68.64
60.00
50.00
40.00
30.00
20.00 18.61 18.14 16.51
10.00
0.00
Reliance HDFC Birla SunLife UTI

INTERPRETATION:
From the above data, it was observed that the Standard Deviation of Mutual
Funds (Reliance, HDFC, Birla Sun Life and UTI) were shown highest in the Reliance
Equity Fund i.e. 26.31% and lowest was coded by UTI Equity Fund i.e. 20.74% when
compared with the other funds.

83
 FINDINGS
From the Data Analyses the findings are observed and compared the
performance of Equity funds (Reliance, HDFC, Birla Sun Life and UTI) with the
Benchmark of CNX Nifty (NSE) and understand the factors are influencing the
investors. Where directly invest either in a Financial Market or in Mutual Funds. The
following information is influence the investors decisions in evaluation by
performance of Equity Funds in which obtaining a maximum returns with minimum
risk through diversification and choosing a portfolio by investors or with the help of
Asset Management Companies.
 It was observed that the performance of Equity Funds performed well
than the Benchmark index Nifty in over the years in the study.
 It was identified the UTI Equity Fund is generated more return then the
comparative other funds.
 Reliance Growth Fund is generated high amount of return at high level
of volatility of Beta.
 Where the Birla Sun life Equity Fund is generated moderately returns
and risk to the investors on the investment.
 HDFC Equity Fund is a highly risky fund when comparative to other
funds in the study.
 Ultimately the performance of Mutual Funds are more than upto the
mark of Benchmark of CNX NIFTY.

84
 SUGGESTIONS
It can be said that, falling interest rates and recent developments in the
investment climate in the country, have led to investment avenues dwindling
drastically. But Mutual Funds are any day a safe bet for investors of different groups,
motives and other preferences. Since Asset Management companies offer a range of
Funds respective Investment philosophies, an investor can benefit only by investing in
appropriate fund, which shall meet his requirements.
 UTI Equity Fund (An Open-ended Equity Growth Fund) is better to invest.
Where in this fund the company is presenting Quarterly Dividend and other
benefits.
 To the risk seekers in the Mutual Fund is better to invest in Reliance Growth
Fund is advisable due to the Fund is acting against to the Stock Market’s
volatility.
 An Open-ended Equity Growth Fund is better to invest. These Funds
providing more yields on NAV with less volatility then the comparative other
Funds.
 The new entrants to the stock market are suggested to invest in Mutual Funds
then the stock market with a minimum of investments.
 The Mutual Funds are also providing the same gain to the investors for the
same investment in the stock markets at lower risk for the capital investments.
 The fund managers are safely driving the funds according to the investor’s
opinion and acting according to the market situations.

85
 CONCLUSION

Mutual Funds now represent perhaps most appropriate investment opportunity

for most investors. As financial markets become more sophisticated and complex,
investors need a financial intermediary who provides the required knowledge and
professional expertise on successful investing. As the investor always try to maximize
the returns and minimize the risk. Mutual fund satisfies these requirements by
providing attractive returns with affordable risks. The fund industry has already
overtaken the banking industry, more funds being under mutual fund management
than deposited with banks. With the emergence of tough competition in this sector
mutual funds are launching a variety of schemes which caters to the requirement of
the particular class of investors.

Risk takers for getting capital appreciation should invest in growth, equity
schemes. Investors who are in need of regular income should invest in income plans.
The stock market has been rising for over three years now. This in turn has not only
protected the money invested in funds but has also to help grow these investments.
This has also instilled greater confidence among fund investors who are investing
more into the market through the Mutual Fund route than ever before.

Reliance India mutual funds provide major benefits to a common man who
wants to make his life better than previous. India’s largest mutual fund, UTI, still
controls nearly 80 per cent of the market. HDFC having a more Assets size in the
market and Birla sun Life is established under the combination of foreign and
Domestic Company. Also, the Mutual fund industry as a whole gets less than 2 per
cent of household savings against the 46 percent that go into bank deposits. Some
fund managers say this only indicates the sectors potential.

"If mutual funds succeed in chipping away at bank deposits, even a triple digit
growth is possible over the next few years. The mutual fund investors prefer more of
the equity fund as they want more return on their money in a longer period. They
avoid going to investment directly in to the Stock Market (CNX Nifty) because they
can get same amount of return on their investment that is also without taking any risk.

86
 BIBLIOGRAPHY
The readings listed here had proved to be helpful in learning and completion
of my Project.

Magazines:
 Business Standard

Referred Books:
 Making mutual funds work for you – The investors concise guide AMFI(
D.R.Mehta SEBI Chairman, 2000)
 Security Analysis( Dogulas Hamilton Bellemore,2007)
 Mutual Funds in India by Sadak
 AMFI work

Visited Websites:

 http://www.mutualfundindia.com
 http://www.valueresearchonline.com
 http://www.amfiindia.com
 http://www.cholamutual.com
 http://www.nseindia.com
 https://www.fundsindia.com

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