A

PROJECT REPORT
ON
“A Relative Study Of Mutual Fund With Reference To Debt Market In India”
AT
(At SBI CAPITAL Securities Pvt. Ltd)
SUBMITTED TO
"SAVITRIBAI PHULE PUNE UNIVERSITY"
IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE
OF
MASTER OF BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY
“ADINATH DATTATRAY KHATAVKAR”
UNDER THE GUIDANCE OF

"Prof. MAHESH POL”

SINHGAD TECHNICAL EDUCATION SOCIETY

BATCH 2017-19

1
 DECLARATION

I the undersigned, “ADINATH DATTATRAY KHATAVKAR” do here by declare that

the project report entitled “A Relative Study Of Mutual Fund With Reference To
Debt Market In India.” Genuine and benefited work presented by me under the guidance of
internal project guide Prof. MAHESH POL. The empirical finding in this project is based on
the data collected by me. The matter presented in this project is not copied from any source. The
work has not been submitted for the award of any degree or diploma earlier to University of
Pune, or any other University. The Project report is submitted to Pune University in the partial
fulfilment of Master degree course in business administration.

Date: / / Adinath Khatavkar

Place: Pune MBA Finance

2
 ACKNOWLEDGEMENT

A Summer internship project is golden opportunity for learning and self-

development. I consider myself very lucky and honoured to have so
many wonderful person lead me through in completion of this project
during 26th May 2017 to 25th of July 2017.
I wish to express my indebted gratitude and special thanks to Mr.
PRASANNA PURANIK (Channel Manager , Pune) and All staffs of
SBI Capital Securities pvt, ltd. I am thankful for their contribution. Who
in spite of being busy with his duties, took time out here and keep me
correct path and allowing me carry out my project work.

Place: Pune

Date:

ADINATH KHATAVKAR

(M.B.A- 2017-19)

3
 INDEX

Sr. TOPIC PAGE

No. NO.
1 COMPANY PROFILE 1

2 INTRODUCTION TO MUTUAL FUND 4

3 NEED FOR STUDY 17

4 OBJECTIVES OF THE STUDY 19

6 SCOPE OF THE STUDY 21

7 RESEARCH METHEDOLOGY 23

8 FUNDS TAKEN INTO CONSIDERATION 25

9 DATA INTERPRETATION AND ANALYSIS 36

10 FINDINGS 42

11 LIMITATIONS 44

12 SUGGESTIONS 46

13 CONCLUSIONS 48

14 BIBLIOGRAPHY 50

4
5
 CHAPTER NO.1

COMPANY PROFILE

6
 SBI Capital Markets (SBICAPS) is an investment bank founded in
August 1986. It is wholly owned subsidiary and the investment banking arm of
State Bank of India (SBI). Headquartered in Mumbai, SBICAP has 5 regional
offices and 5 subsidiaries. SBICAP also offers services in the areas in the Equity
Broking & Research, Security Agency & Debenture Trusteeship Private Equity
Investment & Asset Management through its wholly owned subsidiaries SBICAP
Securities Limited, SBICAP Trustee Co. Ltd and SBICAP Ventures Limited,
respectively.

Mutual Fund SBI Mutual Fund

Setup Date Jun-29-1987

Incorporation Date Feb-07-1992

Sponsor State Bank Of India

Trustee SBI Mutual Fund Trustee Com PVT LTD

Chairman Mrs. Arunadhati Bhattacharya

CEO/MD Mr. Dinesh Kumar Khara

Compliance Officer Mr. Vinaya Datar

Investor Service Officer Mr. Rohidas Nakashe.

7
 SBICAP Securities Ltd(SSL) is the broking arm of the State Bank Group
and a wholly owned subsidiary of SBI Capital Markets Ltd. SSL commenced
operations in the first quarter of financial year of 2006-2007 with a view to
providing primary and secondary capital market access to investors. The company
currently has in its fold a wide segment of clients including Banks, Financial
Institutions, FIIs, Mutual Funds, and corporates, High net worth Individuals, Non-
Resident Indians and Retail domestic investors. SSL is registered with the
Securities Exchange Board Of India (SEBI) for its various services , a summary of
which is as under:

Following table shows details of regional offices, branch offices and subsidiaries
of SBI Capital Market Limited.

Regional Offices Branch Offices Subsidiaries

Ahmedabad Pune SBICAP Securities Limited

Chennai Guwahati SBICAP Ventures Limited

Hyderabad SBICAP(Singapore) Limited

Kolkata SBICAP (UK) Limited

New Delhi SBICAP Trustee Company

Limited

Mission
“To work together with integrity and make our customers feel valued”
8
 Vision
“To create valuable relationship and provide the best financial services most
professionally”

Core Value
“Respect our colleague and the business itself.”

Product And Services

We offer a diverse range of financial services which includes institutional and
retail brokerage of

1. Mutual Funds
2. Capital Gain Bonds
3. Life Insurance
4. General Insurance
5. NCD’s
6. Fixed Deposits
7. RBI Bonds
8. IPO’s
9. Home Loan

9
 CHAPTER NO.2

EXECUTIVE SUMMARY

10
 EXECUTIVE SUMMARY

MUTUAL FUND:
Mutual funds have become a very popular way to take some of the risk out of investing in individual
stocks by investors. Mutual funds are a collection of stocks selected by mutual fund seller and sold to
investors as shares in a fund. There are several types of funds that you can invest in. Some of the more
popular types are technology funds, growth funds, security funds, and income funds. Mutual funds are
very popular because they allow you to invest in a number of stocks therefore greatly reducing the risks
associated with putting you money in an individual stock.

Mutual funds have become one of the most attractive ways for the average person to invest their
money. A mutual fund pools resources from thousands of investors and then diversifies its
investment into many different holdings such as stocks, bonds, or government securities in order
to provide high relative safety and returns.

Mutual Funds now represents perhaps the most appropriate opportunity for most investors. It is
no wonder that birthplace of mutual funds - the U.S.A.- the fund industry has already overtaken
the banking industry. The Indian industry has already started opening many of the exciting
investment opportunities to Indian investors.

Though not insured like banks, mutual funds generally provide more return than the current one
to two percent obtainable through banks while still being one of the safest ways to grow your
money. There are an endless variety of mutual fund investment choices depending on the degree
of risk you feel comfortable with.

Mutual Funds have emerged as professional intermediaries. Besides providing the expertise in
stock market investing, these funds allow investing in small amounts and yet holding a
diversified portfolio to a limit.

11
HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the
initiative of the Government of India and Reserve Bank and started its operations in 1964 with
the issue of units under the scheme US-64. The history of mutual funds in India can be broadly
divided into four distinct phases: -

First Phase- 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the
Reserve Bank of India and functioned under the Regulatory and administrative control of the
Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development
Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The
first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs. 6,700
crores of assets under management.

Second Phase- 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and
Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC).
SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by
Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank
Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC
established its mutual fund in June 1989 while GIC had set up its mutual fund in December
1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47,004
crores.

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

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in
which the first Mutual Fund Regulations came into being, under which all mutual funds, except

12
LTI 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

Fourth Phase - since February 2003

I n February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated
into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets
under management of Rs.29,835 crores as at the end of January 2003, representing broadly., the
assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of
Unit Trust of India, functioning under an administrator and under the rules framed by
Government of India and does not come under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of
the erstwhile UTI which had in March 2000 more than Rs. 76,000 crores of assets under
management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector funds, the
mutual fund industry has entered its current phase of consolidation and growth. As at the end of
October 31, 2003, there were 31 funds, which manage assets of Rs. 126726 crores under 386
schemes.

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

Currently Public Sector Banks like SBI, Canara Bank, Bank of India, institutions like IDBI,
GIC, LIC Foreign Institutions like Alliance, Morgan Stanley, Templeton and Private financial
companies like HDFC, Prudential ICICI, DSP Merrill Lynch, Sundaram, Kotak Mahindra etc.
have floated their own mutual funds.

13
WHAT IS MUTUAL FUND?

A Mutual Fund is a vehicle for investing in stocks and bonds. It is not an alternative investment
option to stocks and bonds; rather it pools the money of several investors and invests this in
stocks, bonds, money market instruments and other types of securities. Buying a mutual fund is
like buying a small slice of a big pizza. The owner of a mutual fund unit gets a proportional share
of the fund's gains, losses, income and expenses.

A Mutual Fund is a body corporate registered with the Securities and Exchange Board of India
(SEBI), that pools up the money from individual/ corporate investors and invests the same on
behalf of the investors /unit holders, in equity shares, Government securities, Bonds, Call money
markets etc., and distributes the profits. In other words, a mutual fund allows an investor to
indirectly take a position in a basket of assets. A mutual fund pools together sums from
individual investors and invests it in various financial instruments. Each mutual fund has its own
investment objective.

Mutual funds have become one of the most attractive ways for the average person to invest
their money. A mutual fund pools resources from thousands of investors and then diversifies its
investment into many different holdings such as stock, bonds, and securities in order to provide
highly relative safety and returns.

Each Mutual Fund with different type of schemes is managed by respective Asset
Management Company (AMC). An investor can invest his money in one or more schemes of
Mutual Fund according to his choice and becomes the unit holder of the scheme. The invested
money in a particular scheme of a Mutual Fund is then invested by fund manager in different
types of suitable stock and securities, bonds and money market instruments. Each Mutual Fund is
managed by qualified professional man, who use this money to create a portfolio which includes
stock and shares, bonds, gilt, money-market instruments or combination of all. A mutual fund is
a form of collective investment. It is a pool of money collected from various investors which is
invested according to the stated investment objective. The fund manager is the person who
invests the money in different types of securities according to the predetermined objectives. The
portfolio of a mutual fund is decided taking into consideration this investment objective.
14
ADVANTAGES OF INVESTING IN MUTUAL FUNDS:

There are several that can be attributed to the growing popularities and suitability of mutual
funds as an investment vehicle especially for retail investors.

Professional management:

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

Diversification:

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

Convenient administration:

Investing in a mutual fund reduces paperwork and helps you avoid many problems such as bad
deliveries, delayed payment and follow up with brokers and companies. Mutual funds save your
time and make investing easy and convenient.

Return potential:

Over a medium to long term, mutual funds have the potential to provide a higher return as they
invest in a diversified basket of selected securities.

Low costs:

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

15
Liquidity:

In open ended schemes, the investors get the money back promptly at net asset value related
prices from the mutual fund. In closed end schemes, the units can be sold on a stock exchange at
the prevailing market price or the investor can avail of the facility of direct repurchase at NAV
related prices by mutual fund.

Transparency:

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

Flexibility:

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

Affordability:

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

16
Importance of Mutual Fund:

Small investors face a lot of problems in the share market, limited resources, lack of professional
advice, lack of information etc. Mutual funds have come as a much-needed help to these
investors. It is a special type of institutional device or an investment vehicle through which the
investors pool their savings which are to be invested under the guidance of a team of experts in
wide variety of portfolios of corporate securities in such a way, to minimize risk, while ensuring
safety and steady return on investment. It forms an important part of the capital market,
providing the benefits of a diversified portfolio and expert fund management to a large number,
particularly small investors. Now days, mutual fund is gaining its popularity due to the following
reasons.

Fig.1

With the emphasis on increase in domestic savings and improvement in deployment of

investment through markets, the need and scope for mutual fund operation has increased
tremendously.

17
TYPES OF MUTUAL FUNDS IN INDIA

Mutual funds can be classified based on the structure and investment objective. By Structure,
mutual funds are closed-end fund and open-end fund.

Closed-End Fund

A closed-end fund looks much like a stock of a publicly traded company: it's traded on
some stock exchange, you buy or sell shares in the fund through a broker just like a stock
(including paying a commission), the price fluctuates in response to the fund's performance and
(very important) what people are willing to pay for it. Also like a publicly traded company, only
a fixed number of shares are available.

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

Open-End Fund

An open-end fund is the most common variety of mutual fund. Both existing and new
investors may add any amount of money they want to the fund. In other words, there is no limit
to the number of shares in the fund. Investors buy and sell shares usually by dealing directly with
the fund company, not with any exchange. The price fluctuates in response to the value of the
investments made by the fund, but the fund company values the shares on its own; investor
sentiment about the fund is not considered.

Open-end funds keep some portion of their assets in short-term and money market securities to
provide available funds for redemptions.

18
BASED ON INVESTMENT OBJECTIVE:

When it comes to investing in mutual funds, investors have literally thousands of

choices. Before investing in any given fund, decide whether the investment strategy and risks of
the fund are a good fit for you. The first step to successful investing is figuring out financial
goals and risk tolerance. Once you know what you're saving for, when you'll need the money,
and how much risk one can tolerate, one can more easily narrow our choices

SCHEMES

Equity Funds

Debt Funds

Balanced funds

1. EQUITY FUNDS:

They are also known as growth funds. They focus on stocks that may not pay a regular dividend
but have potential for large capital gains. They promise pure capital appreciation with equity
shares. They buy shares in companies with high potential for growth (some of which might not
pay dividends). The NAV of such a fund will tend to be erratic, since these so-called growth
shares experience high price volatility.

Sector funds: The goal is once again pure capita! appreciation, but the strategy is to buy into
shares of only one industry. And not diversify like a growth fund. Such funds forgo the principle
of asset allocation for high returns. That's why they are also the riskiest.

 Tax planning funds:Also, known as equity linked savings schemes, they operate like
any other growth fund (and that's why are as risky). However, an investor in these
schemes gets an income-tax rebate of 20 per cent (for a maximum of Rs 10,000) under
Section 88 of the Income Tax Act.

 Index fund: Their goal is to match the performance of the markets. They do not involve
stock picking by so called professional fund managers. An index fund essentially buys
into the stock market in a way determined by some market index.
19
 2. DEBT FUNDS:

They aim to provide safety of principal and regular (monthly, quarterly or semi-annually) income
by investing in bonds, corporate debentures and other fixed income instruments. The AMC in
this case will also be guided by ratings given to the issuer of debt by credit rating agencies.
Wherever a debt instrument is not rated, specific approval of the board of the AMC is required.
Since most of corporate debt is illiquid, the fund tries to provide liquidity by investing in debt of
varying maturity. Some of the common debt funds are:

 Money market funds:Also, known as liquid plans, these funds are a play on volatility in
interest rates. Most of their investment is in fixed-income instruments with maturity
period of less than a year. Since they accept money even for a few days, they are best
used to park short-term money, which otherwise earns a lower return in a savings bank
account.

 Gilt funds: They are aimed at generating returns commensurate with zero credit risk,
which is by investing securities created and issued by the central and/or the state
government securities and/or other instruments permitted by the Reserve Bank of India.
Since they ensure zero risk, instant liquidity, tax-free income, their return is lower than
an income fund.

3. BALANCED FUNDS:

The idea is to get the best of both the world's equity shares and debt. These are also known as
hybrid funds. Investing in equities is supposed to bring home capital appreciation, while that in
fixed income is to impart stability and assure income for distribution. The proportion of the two
asset classes depends on the fund managers' preference for risk against return. But because the
investments are highly diversified, investors reduce their market risk. Normally about 50 to 65
per cent of a portfolio's assets are invested in equity shares.

20
STRUCTURE OF MUTUAL FUND IN INDIA:

Sponsor

Trustees Mutual fund

ASSET
MANAGEMENT
COMPANY

Custodian Registrar

Fig.2

Mutual Funds in India follow a 3-tier structure. There is a Sponsor (the First tier), who
thinks of starting a mutual fund. The Sponsor approaches the Securities & Exchange Board of
India (SEBI), which is the market regulator and the regulator for mutual funds. SEBI checks
whether the person is of integrity, whether he has enough experience in the financial sector, his
net-worth etc. Once SEBI is convinced, the sponsor can create a Public Trust (the Second tier) as
per the Indian Trusts Act, 1882. Trusts have no legal identity in India and cannot enter contracts,
hence the Trustees are the people authorized to act on behalf of the Trust.
21
ASSET MANAGEMENT COMPANIES (AMC)

AMC forms the third tier of the mutual fund structure. Trustees appoint the Asset Management
Company (AMC), to manage investor’s money. The AMC in return charges a fee for the services
provided and this fee is borne by the investors as it is deducted from the money collected from
them. The AMC’s Board of Directors must have at least 50% of Directors who are independent
directors. The AMC must be approved by SEBI. The AMC functions under the supervision of its
Board of Directors, and under the direction of the Trustees and SEBI.

CUSTODIAN

A custodian’s role is safe keeping of physical securities and keeping a tab on the corporate
actions like rights, bonus and dividends declared by the companies in which the fund has
invested. The Custodian is appointed by the Board of Trustees. The custodian also participates in
a clearing and settlement system through approved depository companies on behalf of mutual
funds, in case of dematerialized securities. In India, today, securities and units of mutual funds
are no longer held in physical form but mostly in dematerialized form with the Depositories. The
holdings are held in the Depository through Depository Participants (DPs). The deliveries and
receipt of units of a mutual fund are done by the custodian or a depository participant at the
instruction of the AMC and under the overall direction and responsibility of the Trustees.
Regulations provide that the Sponsor and the Custodian must be separate entities

22
CHAPTER NO.3

NEED FOR THE STUDY

23
NEED FOR THE STUDY

1. Mutual fund is an investment that pools money from shareholders and invest in a variety of
securities, such as stocks, bonds and money market instrument.
2. The purpose of doing this project was to know about mutual fund and performances of
various fund.
3. The need of the study is to analyze the performance of mutual funds and analyses the risk
associated with each fund.
4. Comparison is done between top performers and bottom performers.

24
 CHAPTER NO.4

OBJECTIVE
OF THE STUDY

25
OBJECTIVES OF THE STUDY

1. To study the mutual fund schemes

2. To compare the top ranked and the bottom ranked funds
3. To analyze the Returns and the consistencies of the funds performances
4. To analyze the risk associated with each of the funds

26
 CHAPTER NO.6

SCOPE OF THE STUDY

27
SCOPE OF THE STUDY

By this research, the researcher can identify the funds which give highest return with less risk to
the investors and provide the less volatility with superior risk adjustment and return that are
believed to have growth.

Investors, meanwhile, should continue to choose funds with a good track record and should not
be persuaded to buy products that they don’t want. In each sector, mutual fund plays a crucial
role and provides different schemes to the investors and also provides the advisory services to
the potential investors.

28
 CHAPTER NO.5

RESEARCH
METHODOLOGY

29
RESEARCH METHODOLOGY
The research is to understand the performances of the mutual funds and to compare the funds of
the top performers with the bottom performers and see the risks associated with it from the given
data through analysis.

Research design:

Analytical research

Data collection:

The data can be collected through Secondary sources.

Secondary data:

Secondary data means the data which is collected from existing resources (or) relevant
sources for ex: Fund card, Mail, Library books, Articles etc.

Statistical tools:

These are tools, which helps to analyse the collected data. This analysis contains various
approaches like comparisons, estimation etc. Usually the returns derived are only considered for
choosing the best scheme. But it is only half of the consideration for choosing the best scheme.
The risk should also be considered in choosing the suitable and best scheme. Therefore, what
matters a lot, is the risk adjusted returns. There are several measures to measure the performance
of the scheme and rate it. Each of these measures uses past performance data.

30
 CHAPTER NO.7

FUNDS TAKEN INTO

CONSIDERATION

31
FUNDS TAKEN INTO CONSIDERATION:

ICICI Prudential Long Term Gilt Fund

Investment Objective:
The scheme seeks to generate steady and consistent return from a basket of government
securities across various maturities through proactive fund management aimed at
controlling Interest rate risk. The investment plan will invest in gilt including T-Bills with
medium to long maturity, with average maturity of the portfolio normally not exceeding 8
years.

Table 1ICICI Prudential Long Term GiltFund

Investment Information

Fund Type Open- Ended

Investment Plan Growth

Asset Size (Rs cr) Rs. 2211 cr (As on June 30, 2017)

Min. Investment 5000

Risk Grade High

Return Grade Above average

Fund House ICICI Prudential Mutual Fund.

Launch August 1999

32
Birla sun life gilt plus –PF Plan

Investment Objective:

The scheme seeks to generate income and capital appreciation through investments in
government securities and T-Bills with medium-to-long term maturities.

Table 2.Birla sun life gilt plus –PF Plan

Investment Information

Fund Type Open- Ended

Investment Plan Growth

Asset Size(Rs cr) Rs. 79 cr (As on June 30, 2017)

Min. Investment 1000

Risk Grade Above Average

Return Grade Above Average

Fund House Birla Sun Life Mutual Fund

Launch October 1999

33
Invesco India Gilt Fund - Longer Duration Plan

Investment Objective:
The scheme aims to generate regular income and the growth of capita, by investing 100%
in Government Securities including T-Bills.

Table. 3.Invesco India Gilt Fund - Longer Duration Plan

Investment Information

Fund Type Open- Ended

Investment Plan Growth

Asset Size(Rs cr) Rs. 88 cr (As on June 30, 2017)

Min. Investment 5000

Risk Grade Above Average

Return Grade Average

Fund House Invesco Mutual Fund

Launch February 2008

34
L&T Gilt Fund - Investment Plan

Investment Objective:

The fund seeks to generate returns from a portfolio that is free from credit risk and
invests in gilt securities with medium to long term residual maturity, with the average
maturity of the portfolio normally not exceeding 12 years.

Table 4. L&T Gilt Fund - Investment Plan

Investment Information

Fund Type Open- Ended

Investment Plan Growth

Asset Size(Rs cr) Rs 203 cr (As on. June 30, 2017)

Min. Investment 10000

Risk Grade Average

Return Grade Average

Fund House L&T Mutual Fund

Launch March 2000

35
Kotak Gilt Investment - Regular Plan

Investment Objectives:

The scheme seeks to generate risk-free returns through investments in sovereign

securities. The savings plan (D) will provide regular dividend payouts. A portion of the
fund will be invested in interbank money market to meet the liquidity
requirement.residual maturities.

Table 5.Kotak Gilt Investment - Regular Plan

Investment Information

Fund Type Open- Ended

Investment Plan Growth

Asset Size(RS. IN CR) Rs. 504 cr (As on June 30, 2017)

Min. Investment 5000

Risk Grade Above Average

Return Grade Average

Fund House Kotak Mahindra Mutual Fund

Launch Dec 1998

36
Edelweiss Treasury Fund - Super Institutional Plan

Investment Objective:

The scheme aims to invest primarily in money market and debt instruments with average
maturity of one year and 30% of the portfolio would in the debt instruments with
maturity greater than one year and less than 3 years.

Table 6Edelweiss Treasury Fund - Super Institutional Plan

Investment Information

Fund Type Open- Ended

Investment Plan Growth

Asset Size (Rs cr) Rs. 16 Cr (As on June 30, 2017)

Min. Investment 10000

Risk Grade High

Return Grade Low

Fund House Edelweiss Mutual Fund

Launch September 2007

37
JM Income Fund

Investment Objective

The scheme seeks to provide high degree of liquidity, along with current income and
capital preservation through a mix of debt and equity

Table 7.JM Income Fund

Investment Information

Fund Type Open- Ended

Investment Plan Growth

Asset Size (Rs cr) Rs. 39 Cr (As on June 30, 2017)

Min. Investment 5000

Risk Grade Above Average

Return Grade Low

Fund House JM Financial Mutual Fund

Launch April 1995

38
HDFC Cash Management Fund – Call Plan

Investment Objective:
The fund seeks to generate reasonable return commensurate with low risk and high
liquidity from a portfolio of money market and debt securities with overnight maturity.

Table 8.HDFC Cash Management Fund – Call Plan

Investment Information

Fund Type Open- Ended

Investment Plan Growth

Asset Size (Rs cr) Rs. 94 Cr (As on June 30, 2017)

Min. Investment 5000

Risk Grade -

Return Grade Low

Fund House HDFC Asset Management Company Ltd.

Launch February 2002

39
 LIC MF Income Plus Fund

Investment Objective:

The fund seeks to generate reasonable return with low risk and high liquidity from a
portfolio of debt and money market instruments.

Table 9.LIC MF Income Plus Fund

Investment Information

Fund Type Open- Ended

Investment Plan Growth

Asset Size (Rs cr) Rs. 531 Cr (As on June 30, 2017)

Min. Investment 5000

Risk Grade High

Return Grade Low

Fund House LIC Mutual Fund Asset Management

Company Ltd.

Launch May 2007

40
Taurus Dynamic Income Fund - Regular Plan

Investment Objective:
The scheme aims to generate regular income and capital appreciation through investment in debt
instruments and money market securities.

Table 10.Taurus Dynamic Income Fund - Regular Plan

Investment Information

Fund Type Open- Ended

Investment Plan Growth

Asset Size (Rs cr) Rs. 15 Cr (As on June 30, 2017)

Min. Investment 5000

Risk Grade Low

Return Grade Low

Fund House Taurus Mutual Fund

Launch February 2011

41
 CHAPTER NO.8

DATA INTERPRETATION
AND ANALYSIS

42
DATA INTERPRETATION AND ANALYSIS

Top 5 Performers (Debt)

Average Returns Average Returns Average Returns Average Returns
Funds of 1-year of 2-year of 3-year of 5-year

ICICI Prudential Long

20.15 11.07 13.67 10.27
Term Gilt Fund

Birla sun life gilt plus 18.79 10.65 13.88 11.17

Invesco India Gilt Fund

18.4 9.76 12.34 9.18
- Longer Duration Plan
L&T Gilt Fund -
18.16 11.1 13.51 12.76
Investment Plan
Kotak Gilt Investment -
18.12 10.11 12.99 10.2
Regular Plan

20.5
20
19.5
19
18.5
18
Series1
17.5
17
ICICI Birla sun Invesco L&T Gilt Kotak Gilt
Prudential life gilt plus India Gilt Fund - Investment
Long Term Fund - Investment - Regular
Gilt Fund Longer Plan Plan
Duration
Plan

Fig 3: Top Performers avg return

Interpretation: From the above data, ICICI Prudential Long Term Gilt Fund has the highest
one year return of 20.15%, but, L &T Gilt fund has maintained the consistency in the returns of
3 year and 5 year among all the other funds

43
Bottom 5 Performers (Debt)
Average Average Average
Average Returns of 1-
Funds year
Returns of 2- Returns of 3- Returns of 5-
year year year

Edelweiss Treasury Fund

7.14 2.89 5.05 6.75
- Super Institutional Plan

JM Income Fund 8.68 4.83 8.07 7.45

Taurus Dynamic Income

7.18 7.31 7.67 7.32
Fund - Regular Plan

HDFC Cash
Management Fund - Call 6.38 6.79 7.26 7.62
Plan
LIC MF Income Plus
8.28 7.02 7.25 7.68
Fund

10
9
8
7
6
5
4
3
2
1 Average Returns of 1-year
0

Fig 4: Bottom Performers Average Returns

Interpretations: from the above table, JM Income Fund has highest one year return with
8.68%, but, these returns are comparatively lower than the top performers of the debt funds.

44
NAV: Net Asset Value is the value of an entity’s assets minus the value of its liabilities, often
in relation to open-end or mutual funds. This may also be same as the book value or the equity
value of a business.

NAV(Rs.) - Top Performers

Invesco India
ICICI Birla sun Kotak Gilt
Gilt Fund - L&T Gilt Fund -
YEAR Prudential Long life gilt Investment -
Longer Investment Plan
Term Gilt Fund plus Regular Plan
Duration Plan

2012 38.81 29.97 12.38 26.47 39.68

2013 38.93 31.02 1248.95 28.91 39.7

2014 45.92 37.21 1461.21 33.63 46.49

2015 48.47 39.32 1523.28 36.15 48.93

2016 57.27 45.87 1776.27 42.21 57.01

2017 57.97 46.45 1803.03 42.67 57.68

Table 11. NAV of Top Performers

Interpretations: From the above interpretation, of the 5 years data, every fund has shown a
constant increase in the Performance of the NAV, but, again, Invesco India gilt fund has shown a
considerable jump in the year 2013 with NAV of 1248.95 and year 2014 with NAV of 1461.21.

45
NAV(Rs.) - Bottom Performers

Taurus
Edelweiss
Dynamic HDFC Cash LIC MF
Treasury Fund - JM Income
YEAR Income Fund Management Fund Income
Super Fund
- Regular - Call Plan Plus Fund
Institutional Plan
Plan

2012 15.06 34.05 12 18.44 15.16

2013 16.42 35.61 12.4 19.96 16.39
2014 17.96 40.26 13.48 21.59 17.62
2015 17.77 41.94 14.5 23.00 18.68
2016 19.05 44.95 15.55 24.00 20.2
2017 19.15 45.4 15.65 2.00 20.29
Table 11. NAV of Bottom Performer

Interpretation: From the above table, HDFC Cash Management Fund – Call Plan has shown
a considerable jump in the year 2015 and 2016-17 with NAV of rs. 2316.19 and rs. 2464.64
respectively

46
Expenses ratio: Expense ratio is the fee charged by the investment company to manage the
funds of investors.

Table 12:

Expenses Ratio (%) - Top Performers

Invesco
ICICI Birla India
L&T Gilt Kotak Gilt
Prudential sun Gilt
Fund - Investment
YEAR Long life Fund -
Investment - Regular
Term gilt Longer
Plan Plan
Fund plus Duration
Plan
2012 1.5 1.5 2 1.5 1.85
2013 1.41 1.48 1.56 1.5 2.06
2014 1.06 1.47 1.72 1.5 2.26
2015 0.95 1.36 1.78 0.71 1.29
2016 0.87 1.36 1.17 1.92 0.98

Table 13:

Expenses Ratio (%) - Bottom Performers

Edelweiss Taurus
LIC
Treasury Dynamic HDFC Cash
JM MF
Fund - Income Management
YEAR Income Income
Super Fund - Fund - Call
Fund Plus
Institutional Regular Plan
Fund
Plan Plan

2012 2.25 1.53 0.2 0.59

2013 0.48 2.61 2.05 0.25 0.62
2014 0.49 2.59 2.17 0.25 1.78
2015 0.42 2.48 0.95 0.25 2.47
2016 - 0.59 1.45 0.25 0.99

47
CHAPTER NO. 9
FINDINGS

48
FINDINGS

Top performer
1. Highest One year return – ICICI Prudential Long Term Gilt Fund – 20.15%
2. Highest 2-year Return – L & T Gilt Fund – 11.10%
3. Highest 3-year and 5-year Return Birla Sun life gilt Term Fund – 13.88% and L& T Gilt
fund 12.76% Respectively.
Bottom Performers
4. Highest One Year Return – JM Income Fund – 8.68%
5. Highest 2-year Return –Taurus Dynamic Income Find – 7.31%
6. Highest 3 year and 5-year Return Being – JM Income and LIC MF Income Plus Fund –
7.26% and 7.68%
7. The Returns earned among the Top Performers is quite higher comparatively to Bottom
Performers.
8. Considerable increase in the NAV among the Top Performers by all the funds, but the
major increase is shown again by the Invesco India gilt Fund and as far as the bottom
performers is concerned, no funds has performed to that exceptions, except for the HDFC
9. Cash Management Fund which showed a considerable increase in the year 2015 and 2016
with NAV of Rs. 2316.19 and Rs. 2464.64 respectively.
10. The Expenses Ratio (%) for both (Top and Bottom Performers) has been fluctuating,
except for the HDFC Cash Management Fund – Call Plan (Bottom Performers), whose
expenses ratio is constant throughout the year.

49
CHAPTER NO. 10

LIMITATIONS

50
LIMITATIONS

 Only top and bottom 5 mutual funds were taken into the study.
 The market fluctuation of the portfolio would also differ from each other.
 Some external factors that affect the performances were not taken into consideration.
 The Fund Amount keeps on changing on a daily basis; there is inconsistencies among the
fund performances, as it cannot be relied totally upon the project.

51
CHAPTER NO. 11

SUGGESTION

52
SUGGESTIONS:

1. The study has tried proving that mere returns of a fund or the past performance are not good
enough to make a sound decision on investment for the future.
2. There is a need to understand various available tools of comparative analysis and their
significance in making an investment decision.
3. The investors must thoroughly evaluate and scrutinize the various
factors of risk, return and volatility while selecting the mutual
funds for investment.
4. Based on the study, the investors are encouraged to put forth their
sums of money in the mutual funds of the debt market as the they
have outperformed the market indices with respect to return.

53
CHAPTER NO. 12

CONCLUSION

54
CONCLUSION

The conclusion made to the study is that both good and non-performing funds are available in the
trade, so the investor has to make decision on the investment by taking highest risk for highest
return under the guidance of financial service companies.

55
 CHAPTER NO. 13

REFERENCES/BIBLIOGRA
PHY

56
REFERANCES/ BIBLIOGRAPHY

www.sbicaps.com

www.moneycontrol.com

57