INTRODUCTION Introduction to Equity Capital and Mutual Funds

Issue of shares is the most important method of raising capital. Finance raised by the issue of shares serves as a financial floor to the companys capital structure. Shares indicate the ownership or equity interest in the assets of the company. Shares are of different nominal or face values and of different kinds to attract different kinds of investors. The maximum amount of capital to be raised by the issue of shares is mentioned in the memorandum of association.

During 1990-91 and 1991-92, equity accounts for 35 to 39 percent of the total capital raised respectively. This proportion was reversed in 1992-93, the first year of free pricing, when the share of equity increased to 62 percent. The share of equity finance increased to a high of 73.18 percent in 1994-95. However, in 1995-96 there is a rise in the importance of debt largely due to the high interest rates in the economy and negative returns from the secondary market.

The mutual fund industry in India started in 1964 with the formation of Unit Trust of India, at the initiative of the Government of India. The 1993 SEBI Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The end of millennium marks 36 years of existence of mutual funds in this country. The ride through these 36 years is not been smooth. Investor opinion is still divided. While some are for mutual funds others are against it. UTI commenced its operations from July 1964. The impetus for establishing a formal institution came from the desire to increase the propensity of the middle and lower groups to save and to invest. UTI came in to existence during a period marked by great political and economic turmoil that depressed the financial market; entrepreneurs were rather hesitant to enter the capital markets.

Concept of Equity Capital

The term Equity literally means the stock or ownership of a company. They are also known as ordinary shares. The rate of dividend on equity shares varies according to the amount of profit available and the intention of board of directors. In the event of winding up of the company, equity shares can be refunded only after all other claims, including those of preference shares for the refund of their capital, have been met. Equity capital or financing is money raised by a business in exchange for a share of ownership in the company. Ownership is represented by owning shares of stock outright or having the right to convert other financial instruments into stock of that private company. Two key sources of equity capital for new and emerging businesses are angel investors and venture capital firms. Equity capital is represented by funds that are raised by a business, in exchange for a share of ownership in the company. Equity financing allows a business to obtain funds without incurring debt, or without having to repay a specific amount of money at a particular time. The Equity Capital Markets Group (ECM) oversees the Firm's activities in the primary equity and equity-linked markets, as well as monetization and equity derivatives. It provides support in the origination of primary market transactions and manages their structuring, syndication, marketing and distribution. The world over, its been shown that over long tenures, equitieswith their risk premia have provided approximately 7 percentage points higher returns than risk-free options. People have to accumulate significant amounts of wealth during their working years. Right now, a 17year bond gives you only 5.5 per cent. So, it is imperative that these people have some exposure to equity.

Concept of Mutual Fund

A mutual fund is a trust that pools the money of many investors -- its shareholders -- to invest in a variety of different securities. Investments may be in stocks, bonds, money market securities or some combination of these. Those securities are professionally managed on behalf of the shareholders, and each investor holds a pro rata share of the portfolio entitled to any profits when the securities are sold, but subject to any losses in value as well. A mutual fund is a group of investors operating through a fund manager to purchase a diverse portfolio of stocks or bonds. Thesre are myriad kinds of mutual funds, each with its own goals and methodologies. Whether or not a mutual fund is a good investment is a matter of much public debate, with many claiming they are excellent for the average person, and others saying they are simply a poor way to invest. For the individual investor, mutual funds provide the benefit of having someone else manage your investments, take care of recordkeeping for your account, and diversify your rupees over many different securities that may not be available or affordable to you otherwise. Today, minimum investment requirements on many funds are low enough that even the smallest investor can get started in mutual funds. A mutual fund, by its very nature, is diversified -- its assets are invested in many different securities. Beyond that, there are many different types of mutual funds with different objectives and levels of growth potential, furthering your chances to diversify. Many critics of mutual funds out that scarcely over 20% of mutual funds outperform the Standard and Poors 500 Index. This means that nearly 80% of the time, an investor would have been more profitable by simply buying equal shares in all 500 of the companies currently on the S&P 500.

INDUSTRY PROFILE
Over the last decade the Indian capital market has been growing drastically. India has largest number of listing companies in the world today. As a result investors have a face a lot of inconvenience in effecting registration of securities in their favour and in receiving their rightful share of dividend, bonus, rights and other benefits. The large number of public issue in the capital market has given rise to large amount of paperwork associated with many related problems. With the increase in the volumes of trading there have been an increase in the number of bad deliveries and this introduced increased risk in settlement of trades. The threat of wrong / forged signature, stolen shares, forged / fake certificates etc.; need to be removed for maintaining the investors confidence in the capital market. The clearing and settlement mechanism have been encumbered by huge volumes of paperwork related to processing of shares certificate. In 1992 Harshad Metha scam exposed the inability of the market participants to keep pace with the volume of activity. With such irregular settlement schedules and bad deliveries and increasing legal cases, the situation proved conducive to risk prone practice. The introduction of NSEs NEAT (National
Stock Exchange Automated Trading)

automated trading in 1994 and its geographical research across smaller cities increased the volumes and trades manifold. Later on with BSE launching its BOLT, handling physical deliveries or paper-based settlements got increasingly tough. It was felt that the settlement up of a depository mechanism and the introduction of scrip less settlement would improve the efficiency of the markers, thus elimination the various problems bought about by dealing in physical certificates. According to Depositories Act 1996, the National Securities Depository Limited (NSDL) was registered on 7th June 1996 with the Securities and Exchange Board of India as the first depository in the country followed by Central Depository Service (India) Ltd. (CDSL) on 19th August 1998.

National Securities Depository Limited (NSDL)

Although India had a vibrant capital market, which is more than a century old, the paperbased settlement of trades caused substantial problem like bad delivery and delayed transfer of

title till recently. The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL, the first depository in India. This depository promoted by institutions of national stature responsible for economic development of the country has since establishment a national infrastructure of international standard that handles mast of the trading and settlement in dematerialized form in Indian capital market. Using innovative and flexible technology system, NSDL work to support the investors and brokers in the capital market of the country. NSDL aims at ensuring the safety and soundness of India market place by developing settlement solution that increases efficiency, minimize risk and reduce costs. At NSDL, we play a quite but central role in developing products and service that will continue to nurture the growing need of the financial services industry. In the depository system, securities are held in depository accounts, which is more or less similar to holding funds in bank accounts. Transfer of ownership of securities is done through simple account transfers. This method does away with all the risk and hassles normally associated with paperwork. Consequently, the cost of transacting in a depository environment is considerably lower as compared to transacting in certificates.

Central Depositary Services Limited (CDSL)

The stock exchange Mumbai and Bank of India (BOI) have jointly promoted that secondary Depository in the country for dealing in securities with electronic form by name CDSL. Objectives Accelerate the growth of scrip less trading. To make a major thrust in the individual investors participation in the Depository. Create a comprehensive environment, which will be responsive to the users interest and demand. Enhance liquidity.

CDSL has broad based ownership pattern with equity participation from BSE, banks, and financial institutions and other stock exchanges and Depository participants. Bank of Baroda, UTI, HDFC and SBI are participating in CDSL. Capital is an important factor of production, necessary for economic development. A market for raising funds for capital formation and investment, which is referred to as capital

market, is thus very vital for economic development of any country. Investment comes from savings and the mobilization of savings is a major function of the capital market.

Capital market is a wide term used to comprise all operations in the new issues and stock market. New issues made by the companies constitute the primary market, while trading in the existing securities relates to the secondary market. While we can only buy in the primary market, we can buy and sell securities in the secondary market. Capital market thus provides funds from public who are savers to investors. The

surpluses of the household Sector and Foreign Sector are used to meet the deficits of the Government and business Sectors, who invest more than they save, or spend more than their income. Besides the allocation of funds and the flow of funds from less profitable to more profitable avenues and intermediation between savers and investors are the functions of the capital market. Lending and borrowing of these surpluses and deficits and Bank Credit and the credit from financial institutions are all channelized through the capital market. Commercial and Cooperative Banks, financial institutions, intermediaries are operating in the capital market. This facilitates the project financing and growth of the corporate sector on the one hand and there working in day-to-day operations on the other. Hence the capital market is the market for financial assets that have long or indefinite maturity. When a company wishes to raise capital by issuing securities or other entity intends to raise funds through units, debt instruments, bonds, etc., it approaches the primary market which is the segment of the capital market where issuers exchange financial securities for long-tem funds. The primary market facilitates the formation of capital. There are three ways in which a company may raise capital in the primary market: public issue, rights issue, and private placement. Public issue, which involves sale of securities to members of the public, is the most important mode of raising long-term funds. Rights issue is the method of raising further capital from existing shareholders by offering additional securities to them on a pre-emptive basis. Private placements are a way of selling securities privately to groups of investors.

The secondary market in India (where outstanding securities are traded) consists of the stock exchanges which are self-regulatory bodies under the overall regulatory purview of the government / SEBI. Recently, SEBI has proposed the trading in futures and options (capital market derivatives). Accordingly, the definition of securities under SCRA will have to be amended.

The government has accorded powers to the Securities and Exchange board of India (SEBI), as an autonomous body, to oversee the functioning of the securities market and the operations of intermediaries like mutual funds and merchant bankers, underwriters, portfolio managers, debenture trustee, bankers to an issue, registrars to an issue and share transfer agents, stock brokers, sub-brokers, FIIs (Foreign Institutional investors) plantation companies schemes including rating agencies and also to prohibit insider trading. The first Stock Exchange in India was established in 1875 in Bombay on 9th of July. After its establishment in Bombay the first Stockbrokers association or organization called The Native Share & Stock Brokers Association was formally established in 1875 which was later recognized as Bombay Stock Exchange. It can rightly be proud of being the cradle of the oldest Stock Exchange in Asia. The process of establishing Stock Exchanges gradually spread to other cities of the country. The second Stock Exchange started in 1894 at Ahmedabad as Ahmedabad Shares and Stock Brokers Association to facilitate dealings in the shares of the textile mills. Now it is called Ahmedabad Stock Exchange. In 1908, the Calcutta Stock Exchange came in to existence and business was conducted under the Neem Trees in the open with the sole objectives to provide a market for transaction in plantations and jute mills shares. Next in 1930 at Madhya Pradesh, 1943 in Hyderabad and in 1957 at Bangalore etc. as a result the securities contracted in the initial year. It was the first act to regulate the Stock Exchange in the country. By 1939 speculations arose in the country and the number of Stock Exchanges increased from seven to Twenty four in 1945. During the world war the security market under went several prolonged changes that were brought about by the growth in the manufacturing activities. This lead to the development of organized Stock Exchanges in major cities in the country.

In 1950, the constitution was proclaimed that the Stock Exchange was placed under the regulation of the government, under Securities Contract Regulation Act 1956. Only recognized Stock Exchanges were permitted to function. The government took the responsibility of supervising and controlling the stock markets. The stock markets in India grew at a moderate base from 1956 1980. During this period Foreign Exchange (Regulation) Act, was enacted which effected the securities markets whereby corporations with more than 40% foreign shareholders were required to dilute the foreign ownership. As a result corporations offered equity to the Indian public.

The decade of 1980s however saw the birth of a number of new recognized Stock Exchanges in the country. In 1978 Cochin Stock Exchange was started, in 1982 Pune and U.P. Stock Exchange was started. In 1983 at Ludhiana and in 1984 at Guhwathi, Mangalore and Jaipur and in 1986 at Patna, Stock Exchanges were started. In 1990 at Vadodara, in 1991 Coimbatore Stock Exchanges was started. In 1992 the Over the Counter Exchange of India (OTCEI) and National Stock Exchange (NSE) were started. The stock market activities in India were relatively on low key till the beginning of the decade of 80s mainly because of an alien regime until 1947, which concentrated more on administration than on development and also the public sector dominating the economy in the independent India after 1947. The process of liberalization and deregulation was set by the government headed by the late Sri Rajeev Gandhi as the Prime Minister in November 1984, and later it was followed more vigorously by the next Prime Minister Sri P.V. Narasimha Rao and Dr. Manmohan Singh as the Finance Minister in July 1991. It was expected that about 25% of the domestic savings would be invested in corporate securities and mutual funds by the end of the current century. The Indian economy had vision the eastern sky. The day was extremely important from the Indian economys point of view as it witnessed its country take altogether a different shape created and crafted out finely and timely. The bold step taken with lots of complexities by the Finance Minister had hardly faced any loopholes in the industrial policy. The reason was same, unnecessary bureaucratic control and government intervention in certain core areas. The policy aimed to shed the load of the

public sectors, which have shown a very slow rate of return and high rate of incoming losses over the years, all these reforms have lead to a pace of growth almost unparalleled in the history of any nation.

Chapter 2 Review of Literature: Investment styles and Performance of Equity Mutual Funds in India
The Mutual fund industry in India has emerged as a dominant financial intermediary in Indian capital market. The main objective of investing in a mutual fund scheme is to diversify risk. Though the mutual funds invest in diversified portfolio, the fund managers take different levels of risk in order to achieve the schemes objectives. Therefore, while evaluating and comparing the performance of the schemes, the returns should be measured taking into account the risks involved in achieving the returns. The study aims at analyzing performance of select open-ended equity mutual fund for the period April 2007 Feb 2009.

Author- Rao Neelakanteswar Dabbeeru Performance Characteristics of Individual vs. Team Managed Mutual Funds

This study is an empirical examination of whether funds managed by individuals perform differently than funds managed by teams. Using a sample of about three thousand equity mutual funds over a twelve-year horizon, we find that though funds managed by teams has grown by seven times the rate of funds managed by individuals, there is no significant difference in performance on a risk-adjusted basis. However, funds managed by teams are significantly less risky

Author- Richard T
Jensen (1967) derived a risk-adjusted measure of portfolio performance (Jensens alpha) that estimates how much a managers forecasting ability contributes to funds returns. Sharpe, William (1994) suggested the Sharp- Ratio technique for the measurement for the performance measurement of the MF. Berkowitz et.al,(1997), supports the argument & states that, past fund performance influences individual investment decisions along with implying strong incentives for managers increase the performance of Mutual funds.

Mishra, Rehman (2000) measured MF performance using lower partial moment Risk from the lower partial moment is measured by taking into account only those states in which return is below a pre-specified target rate like risk-free rate. Brealey and

Mayers (2002) supported Quality of Earnings as a key performance measure. Earnings can be manipulated by adopting different accounting policies. Further supported by Grahm et al. (2002), analyst rely on the primarily data, reported cash flows and the use of the accounting conservations in evaluating companies. Ramasamy et al, (2003), agreed that three elements consistent past performance, size of funds & cost of transaction effects the performance

RESEARCH DESIGN 3.1 Title of the Study:

A Comparative Study on Investment in Equity and Mutual Funds

3.2 Statement of the Problem:

In the current economic scenario interest rates are falling and fluctuation in the share market has put investors in confusion. One finds it difficult to take decision on investment. This is primarily, because investments are risky in nature and investors have to consider various factors before investing in investment avenues. Therefore the study aims to compare equity and mutual fund schemes in form their risk, return & liquidity and also creating awareness about Equity and Mutual Fund Schemes among the investors.

3.3 Scope of the Study:

The project primarily deals with equity, derivatives, mutual funds, portfolio management. The study is limited to compare equity capital and mutual fund schemes in respect of their risk, return and liquidity. The study covers 5 randomly selected stocks out of 30 BSE Sensex companies and 5 randomly selected mutual fund schemes out of mutual fund industry in India for comparison. The analysis is strictly based on share price and unit price information. Other company performance indicators are not considered. It focuses on every month ending closing prices of during the period from Apr 2007 to Feb 2009.

3.4 Objectives of the Study:

Saving money is not enough. Each of us also need to invest ones savings intelligently in order to have enough money available for funding the higher education of ones children, for buying a house, or for ones own golden years. But the rapidly growing number of investment avenues often led to confusion. Objectives of the study are to provide information to individual investors regarding their risk, and choosing the best investment options to match their goals and attitude to risk. 1. To compare Equity and Mutual Fund Schemes in respect of their risk & return. 2. Analyzing the performance of equity shares and mutual fund schemes with their benchmark. 3. Finding the Volatility of shares by using beta.
4. Provide information about pros and cons of investing in Equity and Mutual Funds.

3.5 LIMITATIONS OF THE STUDY:

o The time period for the project is limited to only one and half month o Information provided is limited to the extent of internet and journals

3.6 Research Methodology:

The whole study can be termed as comparative study. It is also a desk research hence; there is no field work and collection of primary date for this research. The study centers on comparing equity and mutual fund schemes in respect of their risk, return and liquidity. However, with the objective and scope of the study in mind, it was decided to base the study on return series of selected stocks and mutual fund schemes. BSE being the premier exchange of India was chosen for selecting stocks. It is widely accepted that BSE Sensex is the one of the most reliable index of the stock exchange that reflects present day market condition. Since it is not possible to compare all the 30 scrips in the index with all Mutual Fund Schemes due to time and resource constraints, sampling techniques were considered. Randomly selected samples will facilitate inference of the population, in our case BSE Sensex and mutual fund industry in India. Hence by stratified random sampling 5 scrips out of 30 Sensex and 5 mutual fund schemes out of whole mutual fund industry were selected. The initial examination of the composition of index revealed that it is composed of primarily two types of industries: manufacturing and services in the ratio of 3: 2. there for to give correct picture appropriate weight was assigned to manufacturing industries and hence three scrips from manufacturing and two from service industries were randomly selected and in case of mutual funds it consists basically large cap, mid cap, were selected. Monthly share price and unit prices of the selected scrips and units were collected from historical data. In order to avoid bias, at least three years monthly data was decided to be necessary. The reference period is from Apr 2007 to Feb 2009.

a. Sampling technique:
The quality of research output and the validity of its findings depend upon appropriateness of the sampling design selected for the study. It was needed to apply inferential statistical analysis; hence probability sampling was chosen to be essential.

Criteria for Selecting Sampling Techniques

It is intended to generalize the finding based on the sample examination to the population, therefore, probability sampling adopted in order to have a representative sample. Since the population is heterogeneous stratified random sampling was taken. Probability sampling produces high degree of precision compared to non probability sampling.

Sample Design
1. Relative population 30 BSE sensitivity index companies and mutual fund industry in India. 2. Sampling frame List of population, elements from which sample is drawn (see the annexure). 3. Method of sampling Stratified random sampling. Stratification or division of population into homogeneous group was done on the basis of industry. 4. Variables Monthly calculated risk and returns were used for comparing equity and mutual fund schemes.

b. Sample size: Five companies and five mutual fund schemes are selected.

CONCEPTUAL DEFINITION:

STANDARD DEVIATION: A measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance.

BETA: A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. It is known as "beta coefficient".

ALPHA: A measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund's alpha.

3.1 Schemes of Mutual funds Schemes according to Maturity Period:

A mutual fund scheme can be classified into open-ended scheme or close-ended scheme depending on its maturity period.

Open-ended Scheme:
An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end schemes is liquidity.

Close-ended Scheme:

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor i.e. either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.

Schemes according to Investment Objectives:

A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows:

Growth / Equity Oriented Scheme:

The aim of growth funds is to provide capital appreciation over the medium to longterm. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences.

Income / Debt Oriented Scheme:

The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets.

Balanced Scheme:
The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer

documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.

Money Market or Liquid Fund:

These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities; etc Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.

Gilt Fund:
These funds invest exclusively in government securities. Government securities have no default risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes.

Index Funds:
Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc, these schemes invest in the securities in the same weightage comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as "tracking error" in technical terms. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme.

Sector Specific Schemes:

These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries.

Tax Saving Schemes:

These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act, 1961 as the Government offers tax incentives for investment in specified avenues. e.g. Equity Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also offer tax benefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growth opportunities and risks associated are like any equity-oriented scheme.

3.2 Advantages of Equity Capital and Mutual Fund: Advantages of Equity Capital: 1. High dividend and high value:In times of prosperity, the equity shareholders get a very high rate of dividend, sufficiently higher than that on preference shares. At the same time, their share value will also go up in the market.

2. Voting rights:It is only the equity shareholders who enjoy voting rights on all the policy matters of the company.

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

4. Many privileges and rights:Equity shareholders enjoy many privileges and rights. For example, they can vote at meetings, elect directors, control the directors to run the company efficiently and profitably, look into the books and records of the company and transfer or sell their shareholdings.

Advantages of Mutual Fund: 1. Professional Investment Management:By pooling the funds of thousands of investors, mutual funds provide full-time, highlevel professional management that few individual investors can afford to obtain independently. Such management is vital to achieving results in today's complex markets. Your fund managers' interests are tied to yours, because their compensation is based not on sales commissions, but on how well the fund performs.

2. Diversification:Mutual funds invest in a broad range of securities. This limits investment risk by reducing the effect of a possible decline in the value of any one security. Mutual fund shareowners can benefit from diversification techniques usually available only to investors wealthy enough to buy significant positions in a wide variety of securities.

3. Low Cost:If you tried to create your own diversified portfolio of 50 stocks, you'd need at least Rs.1, 00,000 and you'd pay thousands of rupees in commissions to assemble your portfolio. A mutual fund lets you participate in a diversified portfolio for as little as Rs.10, 000, and sometimes less. And if you buy a no-load fund, you pay or no sale charges to own them.

4. Convenience and Flexibility:You own just one security rather than many, yet enjoy the benefits of a diversified portfolio and a wide range of services. Fund managers decide what securities to trade, clip the bond coupons, collect the interest payments and see that your dividends on portfolio securities are received and your rights exercised.

5. Quick, Personalized Service:Most funds now offer extensive websites with a host of shareholder services for immediate access to information about your fund account. Or a phone call puts you in touch with a trained investment specialist at a mutual fund company who can provide information you can use to make your own investment choices, assist you with buying and selling your fund shares.

6. Ease of Investing:You may open or add to your account and conduct transactions or business with the fund by mail, telephone or bank wire. You can even arrange for automatic monthly investments by authorizing electronic fund transfers from your checking account in any amount and on a date you choose.

7. Total Liquidity, Easy Withdrawal:You can easily redeem your shares anytime you need cash by letter, telephone, bank wire or check, depending on the fund. Your proceeds are usually available within a day or two.

8. Life Cycle Planning:With no-load mutual funds, you can link your investment plans to future individual and family needs -- and make changes as your life cycles change. You can invest in growth funds for future college tuition needs, then move to income funds for retirement, and adjust your investments as your needs change throughout your life.

9. Market Cycle Planning:For investors who understand how to actively manage their portfolio, mutual fund investments can be moved as market conditions change. You can place your funds in equities when the market is on the upswing and move into money market funds on the downswing or take any number of steps to ensure that your investments are meeting your needs in changing market climates.

10. Investor Information:Shareholders receive regular reports from the funds, including details of transactions on a year-to-date basis. The current net asset value of your shares (the price at which you may purchase or redeem them) appears in the mutual fund price listings of daily newspapers. You can also obtain pricing and performance results for the all mutual funds at this site, or it can be obtained by phone from the fund.

11. Periodic Withdrawals:If you want steady monthly income, many funds allow you to arrange for monthly fixed checks to be sent to you, first by distributing some or all of the income and then, if necessary, by dipping into your principal.

12. Dividend Options:You can receive all dividend payments in cash. Or you can have them reinvested in the fund free of charge, in which case the dividends are automatically compounded. This can make a significant contribution to your long-term investment results.

13. Automatic Direct Deposit:You can usually arrange to have regular, third-party payments -- such as Social Security or pension checks -- deposited directly into your fund account. This puts your money to work immediately, without waiting to clear your checking account, and it saves you from worrying about checks being lost in the mail.

14. Recordkeeping Service:With your own portfolio of stocks and bonds, you would have to do your own recordkeeping of purchases, sales, dividends, interest, short-term and long-term gains and losses. Mutual funds provide confirmation of your transactions and necessary tax forms to help you keep track of your investments and tax reporting.

15. Safekeeping:When you own shares in a mutual fund, you own securities in many companies without having to worry about keeping stock certificates in safe deposit boxes or sending them by registered mail. You don't even have to worry about handling the mutual fund stock certificates; the fund maintains your account on its books and sends you periodic statements keeping track of all your transactions.

16. Retirement and College Plans:Mutual funds are well suited to Individual Retirement Accounts and most funds offer IRA-approved prototype and master plans for individual retirement accounts (IRAs) and Keogh, 403(b), SEP-IRA and 401(k) retirement plans.

17. Online Services:The internet provides a fast, convenient way for investors to access financial information. A host of services are available to the online investor including direct access to no-load companies. Visit Company Links to access these Companies.

18. Sweep Accounts:-

With many funds, if you choose not to reinvest your stock or bond fund dividends, you can arrange to have them swept into your money market fund automatically. You get all the advantages of both accounts with no extra effort.

3.3 Disadvantages of Equity Capital and Mutual Fund

Disadvantages of Equity Capital: 1. No refund of capital:Since equity shares cannot be refunded, excessive issue of such shares may leads to overcapitalization, particularly when the earning capacity of the company declining.

2. Benefits only in prosperity:During the periods of prosperity, the company has to distribute heavy dividends on these shares.

3. Manipulation of control:Since the equity shares have proportionate voting power, the companys management may be vitiated by manipulation of votes, clique-formation, abuse of proxy rights etc.

4. High risk:Equity share holders cannot claim dividend as a matter of right, because the decision to fit the rate of dividend on equity shares is vested in the Board of Directors. Therefore investors as a class may find equity shares unsafe, unattractive and unremunerative.

5. Unhealthy Speculation:During the period of boom, the market value of shares will go up, which leads to unhealthy speculation in the stock market.

Disadvantages of Mutual Fund:

There are certainly some benefits to mutual fund investing, but you should also be aware of the drawbacks associated with mutual funds.

1. No Insurance:Mutual funds, although regulated by the government, are not insured against losses. The Federal Deposit Insurance Corporation (FDIC) only insures against certain losses at banks, credit unions, and savings and loans, not mutual funds. That means that despite the risk-reducing diversification benefits provided by mutual funds, losses can occur, and it is possible (although extremely unlikely) that you could even lose your entire investment.

2. Dilution:Although diversification reduces the amount of risk involved in investing in mutual funds, it can also be a disadvantage due to dilution. For example, if a single security held by a mutual fund doubles in value, the mutual fund itself would not double in value because that security is only one small part of the fund's holdings. By holding a large number of different investments, mutual funds tend to do neither exceptionally well nor exceptionally poorly.

3. Fees and Expenses:Most mutual funds charge management and operating fees that pay for the fund's management expenses (usually around 1.0% to 1.5% per year). In addition, some mutual funds charge high sales commissions, 12b-1 fees, and redemption fees. And some funds buy and trade shares so often that the transaction costs add up significantly. Some of these expenses are charged on an ongoing basis, unlike stock investments, for which a commission is paid only when you buy and sell (see Investor Guide University: Fees and Expenses).

4. Poor Performance:Returns on a mutual fund are by no means guaranteed. In fact, on average, around 75% of all mutual funds fail to beat the major market indexes, like the S&P 500, and a growing number of critics now question whether or not professional money managers have better stock-picking capabilities than the average investor.

5. Loss of Control:The managers of mutual funds make all of the decisions about which securities to buy and sell and when to do so. This can make it difficult for you when trying to manage your portfolio. For example, the tax consequences of a decision by the manager to buy or sell an asset at a certain time might not be optimal for you. You also should remember that you trust someone else with your money when you invest in a mutual fund.

6. Trading Limitations:Although mutual funds are highly liquid in general, most mutual funds (called openended funds) cannot be bought or sold in the middle of the trading day. You can only buy and sell them at the end of the day, after they've calculated the current value of their holdings.

7. Size:Some mutual funds are too big to find enough good investments. This is especially true of funds that focus on small companies, given that there are strict rules about how much of a single company a fund may own. If a mutual fund has $5 billion to invest and is only able to invest an average of $50 million in each, then it needs to find at least 100 such companies to invest in as a result, the fund might be forced to lower its standards when selecting companies to invest in.

8. Inefficiency of Cash Reserves:Mutual funds usually maintain large cash reserves as protection against a large number of simultaneous withdrawals. Although this provides investors with liquidity, it means that some of the fund's money is invested in cash instead of assets, which tends to lower the investor's potential return.

9. Different Types:The advantages and disadvantages listed above apply to mutual funds in general. However, there are over 10,000 mutual funds in operation, and these funds vary greatly according to investment objective, size, strategy, and style. Mutual funds are available for virtually every investment strategy (e.g. value, growth), every sector (e.g. biotech, internet), and every country or region of the world. So even the process of selecting a fund can be tedious.

COMPANY PROFILE
GEOJIT FINANCIAL LIMITED Geojit Financial Service Limited was founded by Mr.C.J.George in 1987 as a Partnership for doing Broking business in Chochin Stock Exchange. in1994, the business was taken over by Geojit Financial Service Ltd, a joint venture between Mr.C.J.George and the Kerala State Industries Development Corporation Ltd. In the following year, the

company came up with an IPO and the shares were Listed in various Stock Exchange in India in 1995 and Listed at Bombay Stock Exchange(BSE) in 2000.

HISTORY The company crossed the following milestones to reach its present position as the leading retail broking house in India:

1986 become a member of the Cochin Stock Exchange.

1994 become a corporate broking house. Based on the evaluation report of Ernst & Young, Kerala State Industrial Dvelopment Corporation, an arm of the Govt. of kerala, decided to take up 24% equity stake in geojit financial service Ltd. This is only venture in India where state owned development institution is participation in the equity of a stock broking.

1995 came up with a small initial public offer (IPO) of Rs 9.5million, which was oversubscribed by 15 times. Geojits issued and subscribed equity

capital increased to Rs.30million by the issue and KSIDCS equity stake automatically came down to 17%.

1995

became a member of National Stock Exchange (NSE) and installed its first Trading terminal in Cochin Kerala.

1996

Launched

Portfolio

Management

Services

after

obtaining

required

registration (Portfolio Management) from SEBI.

1997

Launched Depository services as a depository participant under NSDL.

1999

Started Depository Services through the Internet for the first time in India. It was inaugurated by the then SEBI Chairman D.R.Metha.

1999

Became a member of the Stock Exchange, Mumbai (BSE) and activated 20 Bombay Online Terminals (BOLT) in different branches.

1999

Customer base crossed 50000.

2000

Became the first online trading Brokerage in India by offering trading facilities through the net.

2000

Commenced Derivative trading after obtaining registration as a clearing and Trading Member in NSE.

2000

Established Bank Gateway for Internet Trade.

2001

Customer base crossed 1 lakh. Became Indias first DP to launch depository transaction (SPEED-

2001

e) through Internet.

2001

established office in the UAE for serving NRI client.

2002

Ties up with MetLife for the marketing and distribution of insurance product s across the country.

2002

Becomes the first online brokerage house to launch integrated Internet

trading system for both cash and derivatives segment. Mr.G.N.Bajpai, SEBI Chairman, inaugurated the services by punching the first order.

2002

Sheikh Sultan Bin Saud AI Oasimi, a member of the ruling family of sharjah, UAE, joins the board of directors.

2003

Geojit commodities ltd. A wholly subsidiary of Geojit becomes member of national multi-commodity exchange of India national commodity

and derivatives exchange ltd. Multi commodity exchange and launches commodity future trading in rubber, paper, gold, wheat and rice.

2003

Geojit raises more than 100 million through issue of preferential shares

2005

Geojit reach spreads through a network of more than 300 branches.

2005

Geojit credits, a subsidiary of geojit financial services ltd Registers With reserve bank of India as a Non- banking financial company. (NBFC)

2005

The company listed on national stock exchange of India ltd.

2006

Geojit re-launches Internet trading on returns TIB mercury platform.

2007

On March 13, 2007 the formation of Geojit BNP Paribas financial services ltd. was announced in Mumbai and Paris. Through a

preferential allotment, BNP Paribas took 27% stake in Geojit, which will eventually increase to 34.35%. With this final step, the French

banking major has become the largest shareholder in Geojit Financial Services Limited. BNP Paribas has one of the largest international banking networks with significant presence in Asia and the United States. With presence in more than 85 countries the bank has a head count of more than 138,000. 2008 BNP Paribas Securities India (P) Ltd. a Joint Venture with BNP Paribas S.A. for Institutional Brokerage. 1st brokerage to offer full Direct Market Access execution in India for institutional clients 2009 Launch of Property Services division. Launch of online trading in Currency Derivatives. Consequent to BNP Paribas becoming the largest stakeholder in Geojit Financial Services, company is renamed as Geojit BNP Paribas Financial Services Ltd.

BOARD OF DIRECTOR Independent Professionals Constitute the Geojit Board Mr.A.P.Kurian Mr.C.J.George Mr.Jiji Thomson Mr.Mahesh Vyas Non-Executive&independent chairman Managing Director&Chief Promoter Non-Executive & Independent Director Non-Executive & Independent Director

Mr.Rakesh Jhunihunwala Mr.Ramanathan Bupathy Mr.Punnoose George

Non-Executive Director

Non-Executive & Independent Director Non-Executive Director

MANAGING COMMITTEE Mr.C,J.George Mr.Satish Menon Mr.A.Balakrishnan Mr.Kvenkitesh Mr.Stefan Groening Mr.Jean-Christophe Gougeon Mr.Binoy.V.Samuel Mr.Jaya Jacob Alexander Managing Director Director (Operations) Chief Technology Officer National Head-Distribution Director(Planning and Control) Director (Marketing) Chief Financial officer Chief Human Resources

GEOJIT SERVICES

1.

Equities

Broking Services through: National Stock Exchange(NSE) Bombay Stock Exchange(BSE) Net Trading

2.

Derivaties(NSE)

Index Futures Index Option Stock Future Stock option

3.

Depository Services-NSDL

All DP services available at all branches Delvery of Shares through internet(Speed-e) Off Market Transactions Internet Services

4.

Personal Investment Planning

Trained Investment Planners at branches evaluate investment needs of Clients and offer appropriate solution.

5.

Portfolio Management

Competent team of professionals manage portfolios

6. IPOs

Distribution

Mutual Funds Corporate Bonds and Govt.Securities Housing Mortgages Life & General Insurance Products

7.

Learning

IDRA accredited pre recruitment training for Insurance Agents Short-term course for NCFM with certification

Geojit Services Subsidiaries Geojit Commodities Ltd Geojit Technologies(P)Ltd Geojit Financial Distribution(P)Ltd Geojit Financial Management Services(P)Ltd Geojit Credits (P) Ltd Barjeel Geojit securities L.L.C
Geojit Commodities Limited

Geojit Commodities, a subsidiary of Geojit Financial Services Limited is mainly engaged in the business of Commodities Futures Trading. Geojit Commodities is a member of:

National Multi Commodity Exchange of India limited (NMCE) National Commodity & Derivatives Exchange Limited (NCDEX) Multi Commodity Exchange (MCX) India Pepper and Spice Trade Association (IPSTA) Singapore Commodity Exchange (SICOM Dubai Gold Commodity Exchange (DGCX).

Geojit Technologies (P) Limited

Geojit Technologies a subsidiary of Geojit Commodities Ltd. is engaged in providing software solutions using open computing and web standards where possible. Geojit Technologies has strong domain expertise in financial services such as Broking, Depository, Derivatives, Banking, etc. It also offers development, procurement assistance, implementation, guidance and support services.
Geojit Financial Distribution (P) Limited

This is a subsidiary of Geojit Commodities Limited, engaged in the distribution of Mutual Funds and Insurance products.
Geojit Financial Management Services (P) Limited

This is a subsidiary of Geojit Commodities Limited, engaged in providing wealth management services.
Geojit Credits (P) Limited

Geojit Credits, a subsidiary of Geojit Financial Services Ltd. is registered with Reserve Bank of India as an NBFC. It is engaged in the business of margin funding for securities trading, loan against shares, loan against commodity futures, etc.
Barjeel Geojit Securities L.L.C.

Barjeel Geojit Securities LLC is a joint venture between Geojit Financial Services Ltd and Al Saud Group. Al Saud is a Sharjah based company having diversified interest in the area of Construction, Real Estate and Investments and belongs to the family of Sheikh Sultan Bin Saud Al Qassemi from the royal family of Sharjah. Barjeel Geojit Securities offers online and offline trading services to NRI clients.

GEOJIT FACILITIES : Corporate planning integrates teamwork and innovation to offer you The best personal expertise Branch offices at your doorstep Geogit has 362 branch offices equipped with NSE and BSE terminals and trained customer support personnel. Client ID cards now trade even while away from home Customers are issued client ID cards to enable trade transaction from any Geojit branch Internet Trading the border lass world of Geojit Trade in the Indian stock market, both cash and derivatives through Geogit from any part of the world. Any registered Geogit client can avail of this facility. Experience the convenience and security of online trading with Geogits Online Trading system. Now trade from the comfort of your home or even while traveling Geogit ensures that your

 Trades occur in a safe and secure environment. E-depository-Easy, updated tracking of your holdings and paperless transactions Viewing/printing of your holding statement and transaction reports at your fingertips. This service also keeps you updated on the latest value of your holdings. Personalized guidance while planning each stages of your personal/loved ones lifetime requirement. Access most major Indian Stock exchanges Geojit offers broking services through the leading stock exchange of- NSE &BSE. Provides Research Reports timely and exhaustive financial findings tailor-made for you. A knowledgeable team of experienced research analysts backed by specially developed software packages come out with periodic advisory/analytical reports primarily for your benefits.

GEOJIT TECHNOLOGIES The impact of technology on the companys operations continues to be dramatic. The increase the increasing sophistication of Indians financial market and the rapid increase in the use of technology have transformed Geojits business.

State -of the-art communication and integrated solution that are always current are already in place.

Introduction of e-services like online trading and e-depositories is a beginning that corporate vision believes will revolutionize company operations and expand market opportunities.

Technology in conjunction with customized services will continue to strengthen the Geojit client equation.

ORGANISATION STRUCTURE

BRANCH MANAGER

Stock broking

DP

Commodities

Mutual funds

Dealing

Back office

Front office

Marketing Excutive

The Geojit has been divided into four sections for smooth flow of its function o Stock broking section o DP section o Commodities section o Mutual Funds section

Stock Broking Section In back office, the accounting and other manual work takes place and in dealing Section the activities of buying and selling of shares and debenture takes place. This section is supervised and head by a manager.

Depository Participants (DP)

Acts as an agent of the depository and interacts with investor. He is responsible For maintaining investors securities account and the manager supervises operating That account under investors written instruction and DP.

Commodities section Under commodities section the different commodities are traded and the different Processes of delivering the commodities are taken place.

Mutual Funds section In front office online trading activities takes place and this is headed by Mutual funds section. This mutual funds section provides advisory services for investors it includes investment advice for new investors, focus on MF Portfolio, advice on the existing holding and Analysis of funds. And one marketing Executive who undertakes MF activities is guided by MF section and turn Branch Manager supervises this section.

GEOJIT BNP PARIBAS FINANCIAL SERVICES LIMITED

Reg.Office: 5th Floor, Finance Towers. Kaloor, Kochi-682 017

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE 2009
Rs in Lakh

Sr. No.
1

For the Quarter ended Particulars

a) Net Sales/Income Operations b)Other Operating Income Expenditure From 06/30/2009 Unaudited 6,643 62 06/30/2008 Unaudited 3,640 11

For the Year Ended

03/31/2009 Audited 13,991 70

a) Employee Costs b) Operating Expenses c) Administrative Expenditure d) Depreciation e) Total 3 & Other

1,235 2,653 984 267 5,139

1,087 1,082 915 187 3,271 380 301 681 681 2,892 188 493 2,093

4,309 4,860 3,724 1,013 13,906 155 1,882 2,037 11 2,026 2,026 574 1,452 2,234

Profit from Operations before Other Income, Interest and 1,566 Exceptional Items (1-2) Other Income Profit before Interest Exceptional Items (3+4) Interest & 1,328 2,894 2

4 5 6 7 8 9

Profit after Interest but before 2,892 Exceptional Items(5-6) Exceptional Items Net Profit/(Loss) from Ordinary Activities before Tax 2,892 (7+8) Tax Expense Paid-up Equity Share Capital (Face Value of Re.1/- each) Reserves Excluding Revaluation Reserves as per balance sheet of previous accounting year Earnings per Share (in Rs.) - not annualized a) Basic b) Diluted 1.01 1 81,116,145 36.31 % 631 2,234 Net Profit/(Loss)for the period 2,261

10 11 12 13

25,225

14

0.24 0.23 86,926,070 41.42%

0.68 0.66 81,116,145 36.31%

15

Public share holding -No. of shares -Percentage of Share holding

16

Promoters and Promoter group Shareholding a) Pledged/ Encumbered

- Number of Shares

Nil

NA NA

NA NA

- % of Share (as a % of the total shareholding of promoter and NA promoter group) - % of Share (as a % of the total NA share capital of the company) b) Non-Encumbered - Number of Shares 142,295,719

NA

NA

NA NA

142,295,719 100 %

- % of Share (as a % of the total shareholding of promoter and 100 % promoter group) - % of Share (as a % of the total 63.69 % share capital of the company) Notes:

NA

63.69%

1. The above financial result of the company for the quarter 30th June, 2009 was duly reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 11th July, 2009 and had been subjected to limited review by the statutory auditors. 2. As the company has only one reportable segment, i.e. broking and financial services, separate segment reporting is not applicable. 3. Other income includes dividend received from a wholly owned subsidiary amounting to Rs 10 Crs. 4. Number of Investor complaints during the quarter: Opening-Nil; Received-Nil; Disposed-NIl and Pending-Nil. 5. Figures for the prior periods have been regrouped and/or reclassified wherever considered necessary. For Geojit C.J.George Managing Director Place Date : 11.07.09 BNP Paribas Financial Services Limited

Kochi

ANALYSIS AND INTERPRETATION Sample Description:

EQUITIES
ACC LIMITED BHEL ICICI BANK LIMITED L & T PVT LTD. WIPRO

BENCHMARK
BSE SENSEX BSE SENSEX BSE SENSEX BSE SENSEX BSE SENSEX

Mutual Funds companies

MUTUAL FUND
FRANKLIN INDIA PRIMA FUND RELIANCE MUTUAL FUND PRUDENTIAL ICICI MUTUAL FUND SBI MUTUAL FUND UTI MUTUAL FUND

BEANCH MARK
BSE 100 BSE SENSEX BSE 100 BSE 100 BSE 500

DATA ANALYSIS: Calculation of Return and Risk of Selected Companies

Risk and Return of Bench Marks (BSE Sensex)

Month Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Sensex 17558.71 16944.63 17700.9 17868.29 17971.12 20069.12 20032.34 19521.25 20509.09 18327.76 17823.4 19445.22 19135.96 18503.28 18845.87 18197.2 16676.75 16453.76 17705.01 16123.46 15454.92 17193.55 17752.68 Return % -1.443226507 -3.497 4.463 0.945 0.575 11.674 0.183 -2.551 4.816 -11.901 -2.829 8.340 -1.616 -3.420 1.817 -3.564 -9.117 -1.355 7.067 -9.808 -4.325 10.112 3.149 -0.842 -3.461 4.499 0.981 0.611 11.710 0.219 -2.515 4.852 -11.865 -2.793 8.376 -1.580 -3.384 1.853 -3.528 -9.081 -1.319 7.103 -9.772 -4.289 10.148 3.185 11.978 20.241 0.962 0.373 137.124 0.084 6.325 23.541 140.778 7.800 70.157 2.496 11.451 3.433 12.446 82.464 1.739 50.452 95.491 18.395 102.981 10.144 810.855 R R1 (R R1)2

Bench Mark Return and Risk (BSE Sensex)

Return = (P1-P0 *100)-100

Where, P1 = Current month price,

P0 = Previous month price R1 = R/n, where n=number of months.

R1 = -0.842/23

= -0.036

SD = (R- R1)2 /n = 810.855 /23 SD = 5.937

BSE 100 Calculation of Return and Standard Deviation

Month Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12

Sensex 9379.04 9041.23 9442.58 9556.67 9627.72 10627.35 10639.96 10280.81 10675.02 9569.01 9259.48 10095.74 9991.88 9720.96 9803.89 9537.41 8727.88 8613.22 9196.79 8330.57 7927.94 8970.08 9321.49

Return % -1.32995 -3.601 4.439 1.208 0.743 10.382 0.118 -3.375 3.834 -10.360 -3.234 9.031 -1.028 -2.711 0.853 -2.718 -8.487 -1.313 6.775 -9.418 -4.833 13.145 3.917 3.376

R R1 -3.747 4.293 1.062 0.597 10.236 -0.028 -3.521 3.688 -10.506 -3.380 8.885 -1.174 -2.857 0.707 -2.864 -8.633 -1.459 6.629 -9.564 -4.979 12.999 3.771

(R R1)2 14.040 18.489 1.127 0.356 104.775 0.001 12.397 13.601 110.376 11.424 78.943 1.378 8.162 0.499 8.202 74.528 2.128 43.943 91.470 24.790 169.974 14.220 804.823

Bench Mark Return and Risk (BSE 100)

Return = (P1 /P0 *100)-100

Where, P1 = Current month price,

P0 = Previous month price R1 = R/n,

Where n=number of months.

R1 = 3.376/23

= 0.146 SD = (R- R1)2 /n = 804.823/23 SD = 5.915

BSE 500

Calculation of Return and Standard Deviation

Month Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Sensex 7042.68 6782.37 7092.2 7205.22 7289.74 7984.45 8036.88 7722.05 7961.06 7128.29 6850.4 7437.26 7427.14 7233.85 7265.32 7111.31 6487.22 6385.76 6763.26 6117 5778.68 6549.31 6857.28 Return % -1.514296842 -3.696 4.568 1.593 1.173 9.529 0.656 -3.917 3.095 -10.460 -3.898 8.566 -0.136 -2.602 0.435 -2.119 -8.776 -1.563 5.911 -9.555 -5.530 13.335 4.702 1.311 3.753 4.511 1.536 1.116 9.472 0.599 -3.974 3.038 -10.403 -3.955 8.509 -0.193 -2.176 0.378 -2.176 -8.833 -1.620 5.854 -9.612 -5.587 13.278 4.645 14.085 20.349 2.359 1.245 89.718 0.358 15.792 9.229 108.222 15.642 72.403 0.037 4.734 0.142 4.734 78.021 2.624 34.269 92.390 31.214 176.305 21.576 795.448 R R1 (R R1)2

Bench Mark Return and Risk (BSE 500)

Return = (P1 /P0 *100)-100

Where, P1 = Current month price,

P0 = Previous month price

X1 = R/n,

Where n=number of months.

R1 = 1.311/23

= 0.057

SD = (R- R1)2 /n

= 795.448/23

SD = 5.880

1) ACC Limited: Calculation of Return and Risk

Month April 10 May 10 June 10 July 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 April 11 May 11 Jun 11 July 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Scrip Value Return % -10.941 7.037 -4.922 4.852 13.644 -0.661 0.330 8.927 -8.130 -1.730 10.725 3.073 -7.367 -7.534 6.615 -0.938 9.535 8.842 -4.199 -0.759 4.712 9.664 40.775 -12.713 5.265 -6.694 3.080 11.872 -1.111 -1.442 7.155 -9.902 -3.502 8.953 1.301 -9.139 -9.306 4.843 -2.710 7.763 7.070 -5.971 -2.531 2.940 7.892 161.620 27.720 44.809 9.486 140.944 1.234 2.079 51.194 98.049 12.264 80.156 1.692 83.521 86.601 23.454 7.344 60.264 49.984 35.652 6.405 8.643 62.283 1055.398 R R1 (R R1)2

906.15 817.00 874.50 831.45 871.80 990.75 984.20 987.45 1075.60 988.15 971.05 1075.20 1108.25 1026.60 949.25 1012.05 1002.55 1098.15 1195.25 1145.05 1136.35 1189.90 1304.90

Total

Calculation of Beta

RETURN OF DATE COMPANY

RETURN OF MARKET Ra-Ra1 Rm - Rm1

(Ra -Ra1)* (Rm-Rm1)

(Rm Rm1)2

April 10 May 10 June 10 July 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 April 11 May 11 Jun 11 July 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 -10.941 7.037 -4.922 4.852 13.644 -0.661 0.330 8.927 -8.130 -1.730 10.725 3.073 -7.367 -7.534 6.615 -0.938 9.535 8.842 -4.199 -0.759 4.712 9.664 40.775 -3.497 4.463 0.945 0.575 11.674 0.183 -2.551 4.816 -11.901 -2.829 8.34 -1.616 -3.42 1.817 -3.564 -9.117 -1.355 7.067 -9.808 -4.325 10.112 3.149 -0.842 -12.713 5.265 -6.694 3.080 11.872 -1.111 -1.442 7.155 -9.902 -3.502 8.953 1.301 -9.139 -9.306 4.843 -2.710 7.763 7.070 -5.971 -2.531 2.940 7.892 -3.461 4.499 0.981 0.611 11.710 0.219 -2.515 4.852 -11.865 -2.793 8.376 -1.580 -3.384 1.853 -3.528 -9.081 -1.319 7.103 -9.772 -4.289 10.148 3.185
43.999 23.687 -6.566 1.881 139.021 -0.243 3.626 34.716 107.487 9.781 74.990 -2.055 30.926 -17.344 -17.086 24.609 -10.239 50.198 58.348 10.855 29.835 25.136

11.978 20.241 0.962 0.373 137.124 0.084 6.325 23.541 140.778 7.800 70.157 2.496 11.451 3.433 12.446 82.464 1.739 50.452 95.491 18.395 102.981 10.144 810.855

615.562

Bench Mark Return and Risk (ACC Ltd)

Return=P1 /P0 *100 1Where, P1 = Current month price, P0 = Previous month price R1 = R/n, where n=number of months. R1 = 40.775/23 =1.772 SD = (R- R1)2 /n = 3103.55/23 SD = 11.61

Calculation of Beta
B = [(Ra Ra1)(Rm-Rm1)]/ (Rm-Rm1)2 Where Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market = 1230.953/2052.304 B = 0.60

Calculation of Alpha

Alpha = (Ra1-Rm1)*B = ((-1.19)-(-1.44))*0.60 =0.15

Risk and Return of ACC Ltd.

Factor Risk Return Beta Alpha Percentage 12.06 -1.19 0.62 0.15

14 12 10 8 6 4 2 0 -2 Risk Return Beta Alpha

ANALYSIS: ACC Ltd. has a risk factor of 12.06 Its rate of return on a monthly average is -1.19 Alpha and Beta are 0.15 and 0.62 respectively

INTERPETATION: Beta of the ACC ltd. is 0.62 which is less than one; it shows the less volatility of scrip with respect to market. Risk of the share is 12.06% and the rate of return is in negative -1.19.

2) BHEL: Calculation of Return and Risk

Month Scrip Value Return % R R1 (R R1)2

April 10 May 10 June 10 July 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 April 11 May 11

2492.1 2356.65 2460.7 2438.9 2408.2 2483.6 2445.7 2205.75 2324.75 2217.5 2000.65 2060.85 2000.75 1944.1 -5.435 4.415 -0.885 -1.258 3.130 -1.526 -9.811 5.394 -4.576 -9.779 3.009 -2.911 -2.831 -0.284 9.566 4.266 3.893 8.281 3.625 -4.660 10.788 0.575 -4.628 8.160 2.240 2.320 0.080 91.508 18.198 15.155 68.574 13.140 21.715 116.380 0.330 21.418 66.585 5.017 5.382

Jun 11 July 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12

2046.55 1838.35 1767.7 1637.15 317.85 282.2 239 250.55 308.2

5.269 -10.173 -3.853 -7.385 -80.585 -11.215 -15.308 4.832 23.009 -118.473

10.538 -5.022 1.298 -2.234 -75.434 -6.064 -10.157 9.983 28.160

111.049 25.220 1.684 4.990 5690.288 36.772 103.164 99.660 792.985 7309.294

Calculation of Beta
DATE RETURN OF COMPANY RETURN OF MARKET (Ra-Ra1)* Ra-Ra1 Rm-Rm1 (Rm-Rm1) (Rm-Rm1)2

April 10 May 10 June 10 July 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 April 11 May 11 Jun 11 July 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 -5.435 4.415 -0.885 -1.258 3.130 -1.526 -9.811 5.394 -4.576 -9.779 3.009 -2.911 -2.831 5.269 -10.173 -3.853 -7.385 -80.585 -11.215 -15.308 4.832 -3.497 4.463 0.945 0.575 11.674 0.183 -2.551 4.816 -11.901 -2.829 8.340 -1.616 -3.420 1.817 -3.564 -9.117 -1.355 7.067 -9.808 -4.325 10.112 -0.284 9.566 4.266 3.893 8.281 3.625 -4.660 10.788 0.575 -4.628 8.160 2.240 2.320 10.538 -5.022 1.298 -2.234 -75.434 -6.064 -10.157 9.983 -3.461 4.499 0.981 0.611 11.710 0.219 -2.515 4.852 -11.865 -2.793 8.376 -1.580 -3.384 1.853 -3.528 -9.081 -1.319 7.103 -9.772 -4.289 10.148 0.982 43.037 4.184 2.378 96.970 0.793 11.719 52.343 -6.822 12.926 68.348 -3.539 -7.850 19.526 17.717 -11.787 2.946 -535.807 59.257 43.563 101.307 11.978 20.241 0.962 0.373 137.124 0.084 6.325 23.541 140.778 7.800 70.157 2.496 11.451 3.433 12.446 82.464 1.739 50.452 95.491 18.395 102.981

Feb 12 23.009 -118.473 3.149 -0.842 28.160 3.185 89.689 61.880 10.144 810.855

Bench Mark Return and Risk (BHEL)

Return = (P1 /P0 *100) -100 Where, P1 = Current month price, P0 = Previous month price R1 = R/n, where n=number of months. R1 = -27.550/23 =-1.19 SD = (X- X1)2 /n = 5197.246/23

SD = 15.03

Calculation of Beta
B = [ (Ra Ra1) (Rm-Rm1)]/ (Rm-Rm1)2 Where Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market = 1548.77714/1968.188

B=0.79

Calculation of Alpha
Alpha = (Ra1-Rm1)*B = ((-1.19)-(-1.44))*0.79

A=0.17

Risk and Return of BHEL

FACTOR Risk Return Beta Alpha PERCENTAGE 15.03 -1.19 0.79 0.17

16 14 12 10 8 6 4 2 0 -2 Risk Return Beta Alpha

ANALYSIS: BHEL has a risk factor of 15.03 Its rate of return on a monthly average is -1.19 Alpha and Beta are 0.17 and 0.79respectively

INTERPETATION:

Beta of the BHEL. Is 0.79 which is very close to one; it shows the equal volatility of scrip with respect to market. Risk of the share is 15.O3% and the rate of return is in negative (-1.19 %).

3) ICICI BANK LTD: Calculation of Return and Risk

Month April 10 May 10 June 10 July 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 April 11 May 11 Jun 11 July 11 Aug 11 Sep 11 Oct 11 Nov 11 Scrip Value 950.5 867.05 862 904.45 977.3 1110.35 1161.65 1143.65 1144.65 1020 971 1112.75 1114.25 1086 1093.1 1037.75 873.25 875.35 930.5 714.15 -8.779 -0.582 4.924 8.054 13.614 4.591 -1.549 0.087 -10.889 -4.803 14.598 0.134 -2.535 0.653 -5.063 -15.851 0.240 6.300 -23.250 -9.127 -0.930 4.576 7.706 13.266 4.243 -1.897 -0.261 11.237 -5.151 14.250 -0.214 2.701 0.305 -5.411 -16.199 -0.108 5.952 -23.598 83.302 0.864 20.939 59.382 175.986 17.964 3.598 0.068 126.270 26.532 203.062 0.045 7.295 0.093 29.278 262.407 0.011 35.426 556.865 Return % R R1 (R R1)2

Dec 11 Jan 12 Feb 12

684.6 902 906.5

-4.137 31.755 0.498 8.010

-3.789 31.407 0.150

14.356 986.399 0.022 2610.164

Calculation of Beta

RETURN OF RETURN DATE April 10 May 10 June 10 July 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 April 11 May 11 Jun 11 July 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 COMPANY MARKET

OF Ra-Ra1

RmRm1

(Ra-Ra1)*(RmRm1)

(RmRm1)2

-8.779 -0.582 4.924 8.054 13.614 4.591 -1.549 0.087 -10.889 -4.803 14.598 0.134 -2.535 0.653 -5.063 -15.851 0.240 6.300 -23.250 -4.137 31.755 0.498 8.010

-3.497 4.463 0.945 0.575 11.674 0.183 -2.551 4.816 -11.901 -2.829 8.340 -1.616 -3.420 1.817 -3.564 -9.117 -1.355 7.067 -9.808 -4.325 10.112 3.149 -0.842

-9.127 -0.930 4.576 7.706 13.266 4.243 -1.897 -0.261 11.237 -5.151 14.250 -0.214 2.701 0.305 -5.411 -16.199 -0.108 5.952 -23.598 -3.789 31.407 0.150

-3.461 4.499 0.981 0.611 11.710 0.219 -2.515 4.852 -11.865 -2.793 8.376 -1.580 -3.384 1.853 -3.528 -9.081 -1.319 7.103 -9.772 -4.289 10.148 3.185

31.588 -4.184 4.489 4.708 155.344 0.929 4.770 -1.266 -133.327 14.386 119.358 0.338 -9.170 0.565 19.090 147.103 0.142 42.277 230.599 16.251 318.718 0.477 963.185

11.978 20.241 0.962 0.373 137.124 0.084 6.325 23.541 140.778 7.800 70.157 2.496 11.451 3.433 12.446 82.464 1.739 50.452 95.491 18.395 102.981 10.144 810.855

Bench Mark Return and Risk (ICICI BANK LTD)

Return = (P1 /P0 *100) -100 Where, P1 = Current month price, P0 = Previous month price R1 = R/n, where n=number of months. R1 = -70.135/23

R1=-3.05 SD = (R- R1)2 /n = 4792.066/23

SD = 14.43

Calculation of Beta
B = [ (Ra Ra1) (Rm-Rm1)]/ (Rm-Rm1)2 Where Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market = 2706.968/2053.828

B = 1.32

Calculation of Alpha
Alpha = (Ra1-Rm1)*B = ((-3.05)-(-1.44)*1.32

A= -2.13

Risk and Return of ICICI Bank Ltd

FACTOR Risk Return Beta Alpha PERCENTAGE 14.43 -3.03 1.32 -2.13

PERCENTAGE 16 14 12 10 8 6 4 2 0 -2 -4 Risk Return Beta Alpha PERCENTAGE

ANALYSIS: ICICI Bank Ltd. has a risk factor of 14.43% Its rate of return on a monthly average is -3.03% Alpha and Beta are -2.13 and 1.32 respectively.

INTERPETATION: Beta of the ICICI Bank Ltd. Is 1.32 which is higher to one; it shows the high volatility of scrip with respect to market. Risk of the share is 14.43% and the rate of return is only -3.03%.

4) L & T PVT LTD: Calculation of Return and Risk

Month April 10 May 10 June 10 July 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 April 11 May 11 Jun 11 July 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Scrip Value 1608.35 1628.6 1804.55 1797.1 1812.45 2044.7 2021.85 1949.85 1979.05 1641.15 1528.05 1653.25 1597.9 1644 1822.65 1725.95 1609.8 1358.2 1413.25 1268.8 995.1 1310.6 1.259 10.803 -0.412 0.854 12.814 -1.117 -3.561 1.497 -17.336 -6.891 8.193 -3.347 2.885 10.866 -5.305 -6.729 -15.629 4.053 -10.221 -21.547 31.705 1.578 11.122 -0.093 1.173 12.495 -0.798 -3.242 1.816 -17.017 -6.572 8.512 3.028 3.204 11.185 -4.986 -6.410 -15.310 4.372 -9.902 21.228 32.024 129.227 407.293 0.336 107.964 2746.086 1.515 6.395 105.888 7.744 160.058 0.611 602.592 639.092 428.740 0.994 17.513 4295.114 68.144 64.295 90.457 Return % R R1 (R R1)2

Feb 12

1308.1

-0.190 -7.356

0.129

95.845 10348.72

Calculation of Beta
RmDATE April 10 May 10 June 10 July 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 April 11 May 11 Jun 11 July 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 RETURN OF COMPANY 17.817 9.876 18.69 -0.911 8.899 50.911 -2.722 1.0377 -11.781 -4.274 -14.14 -0.709 -0.732 -26.771 19.214 -0.493 -5.676 -67.028 -9.746 6.527 -11.002 -11.281 -34.296 RETURN OF MARKET 4.844 0.729 6.146 -1.494 12.876 14.729 -2.393 4.77 -13.004 -0.396 -11.003 10.501 -5.042 -17.994 6.642 1.454 -11.7 -23.89 -7.1039 6.099 -2.312 -5.651 -33.194 Ra-Ra1 Rm1 (RaRa1)*(RmRm1) (RmRm1)2

19.308 11.367 20.181 0.579 10.39 52.403 -1.231 2.528 -10.29 -2.782 -12.64 0.782 0.758 -25.28 20.706 0.997 -4.184 -65.537 -8.254 8.018 -9.51 -9.79

6.287 2.172 7.589 -0.05 14.319 16.172 -0.949 6.213 -11.56 1.047 -9.559 11.944 -3.598 -16.55 8.085 2.897 -10.256 -22.446 -5.66 7.542 -0.868 -4.207

121.395 24.693 153.162 -0.0294 148.784 847.474 1.169 15.712 118.962 -2.914 120.92 9.34 -2.73 418.407 167.412 2.889 42.923 1471.098 46.728 60.476 8.262 41.194 3815.336

39.529 4.718 57.596 0.002 205.039 261.54 0.902 38.604 133.651 1.096 91.389 142.664 12.951 273.928 65.37 8.393 105.201 503.858 32.043 56.885 0.754 17.705 2053.827

Bench Mark Return and Risk (L&T PVT LTD)

Return = (P1 /P0 *100) -100 Where, P1 = Current month price, P0 = Previous month price R1 = R/n, where n=number of months. R1 = -34.296/23

R1= -1.49 SD = (R- R1)2 /n = 10348.72/23 SD = 21.21

Calculation of Beta
B = [ (Ra Ra1) (Rm-Rm1)]/ (Rm-Rm1)2 Where Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market = 3815.33/2053.82

B = 1.85

Calculation of Alpha
Alpha = (Ra1-Rm1)*B = ((-1.49)-(-1.44)*1.85

A=-0.093

Risk and Return of L&T PVT Ltd

FACTOR Risk Return Beta Alpha PERCENTAGE 21.21 -1.49 1.85 0.093

PERCENTAGE 25 20 15 10 5 0 Risk -5 Return Beta Alpha PERCENTAGE

ANALYSIS: L & T PVT Ltd. has a risk factor of 21.21% Its rate of return on a monthly average is -1.49% Alpha and Beta are 0.093 and 1.85 respectively.

INTERPETATION: Beta of L&T PVT Ltd. is 1.85 which is higher to one; it shows the high volatility of scrip with respect to market. Risk of the share is 21.21% and the rate of return is only -1.49%.

5) WIPRO PVT LTD: Calculation of Return and Risk

Month Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Scrip Value 571.25 544.55 518.5 495.65 482.25 459.85 504.8 460.3 525.6 413.35 434.65 425.3 488.6 508 437.95 416 432.3 339.65 272.15 243.3 233.55 -4.673 -4.783 -4.406 -2.703 -4.644 9.774 -8.815 14.186 -21.356 5.153 -2.151 14.883 3.970 -13.789 -5.011 3.9182 -21.431 -19.873 -10.60 -4.007 -0.861 -0.971 -0.594 1.109 -0.832 13.587 -5.002 17.999 -17.543 8.965 1.661 18.696 7.783 -9.976 -1.199 7.730 -17.619 -16.060 -6.788 -0.194 0.741 0.943 0.353 1.230 0.692 184.621 25.027 323.964 307.789 80.382 2.760 349.544 60.577 99.535 1.438 59.766 310.433 257.948 46.079 0.037 Return % R R1 (R R1)2

Jan-09 Feb-09

231.1 207.35

-1.049 -10.276

2.763 -6.464

7.637 41.787 (RaRa1)*(RmRm1)

DATE

RETURN OF RETURNOF COMPANY MARKET Ra-Ra1

RmRm1

(RmRm1)2

-87.690

2163.303

Calculation of Beta

Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 -4.673 -4.783 -4.406 -2.703 -4.644 9.774 -8.815 14.186 -21.356 5.153 -2.151 14.883 3.97 -13.789 -5.011 3.918 -21.431 -19.873 -10.6 -4.007 -1.049 -10.276 -87.69 4.844 0.729 6.146 -1.494 12.876 14.729 -2.393 4.77 -13.004 -0.396 -11.003 10.501 -5.042 -17.994 6.642 1.454 -11.7 -23.89 -7.1039 6.099 -2.312 -5.651 -33.194 -0.861 -0.971 -0.594 1.109 -0.832 13.587 -5.002 17.999 -17.54 8.965 1.661 18.696 7.783 -9.976 -1.199 7.73 -17.62 -19.87 -6.788 -0.194 2.763 -6.464 6.287 2.172 7.589 -0.05 14.319 16.172 -0.949 6.213 11.56 1.047 -9.559 11.944 -3.598 -16.55 8.085 2.897 -10.256 -22.446 -5.66 7.542 -0.868 -4.207 -5.415 -2.109 -4.5104 -0.056 -11.917 219.74 4.751 111.831 202.821 9.388 -15.883 223.311 -28.009 165.123 -9.697 22.398 180.717 446.093 38.425 -1.469 -2.4 27.2 1570.335 39.529 4.718 57.596 0.002 205.04 261.54 0.902 38.604 133.651 1.096 91.389 142.664 12.951 273.928 65.37 8.393 105.201 503.858 32.043 56.885 0.754 17.705 2053.828

Bench Mark Return and Risk (WIPRO PVT LTD)

Return = (P1 /P0 *100) -100 Where, P1 = Current month price, P0 = Previous month price R1 = R/n, where n=number of months. R1 = -87.69/23

R1= -3.81 SD = (R- R1)2 /n = 2163.303/23

SD = 9.69

Calculation of Beta
B = [ (Ra Ra1) (Rm-Rm1)]/ (Rm-Rm1)2 Where Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market = 157O.34/2053.83

B = 0.76

Calculation of Alpha
Alpha = (Ra1-Rm1)*B = ((-3.81)-(-1.44))*0.76

B=-1.80

Risk and Return of WIPRO PVT Ltd

FACTOR Risk Return Beta Alpha PERCENTAGE 9.69 -3.31 0.76 -1.80

PERCENTAGE 12 10 8 6 4 2 0 -2 -4 Risk Return Beta Alpha PERCENTAGE

ANALYSIS: WIPRO PVT Ltd. has a risk factor of 9.69% Its rate of return on a monthly average is -3.31% Alpha and Beta are -1.80 and 0.76 respectively

INTERPETATION:

Beta of WIPRO PVT Ltd. is O.76 which is close to one; it shows the high volatility of scrip with respect to market. Risk of the share is 9.69% and the rate of return is -3.31%.

CALCULATION OF RETURN AND RISK OF SELECTED MUTUAL FUNDS 1) Reliance Vision Fund:
Reliance Vision Fund is large cap open ended growth fund. Its objective is to achieve long term growth of capital through a research based investment approach. Monthly risk and return from Apr 2007 to Feb 2009 is calculated below.

Calculation of Risk and Return

DATE Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 NET ASSET VALUE
41.4341 41.4896 40.1250 42.9872 43.9779 45.0711 49.5671 49.3220 47.3733 47.6401 42.3663 42.0597 39.8524 39.9679 39.5589 39.6218 39.3248 35.8920 34.6327 36.0773 32.7353 30.6891 35.9220

RETURN % R

R-R1

(R-R1)2

5.055698372 3.996737357 3.137254902 -1.74904943 11.99690402 12.71596406 1.532801962 6.944444444 -12.3094297 -5.795235029 -6.220095694 3.206997085 -4.872881356 -13.06607275 5.550811272 2.427184466 -7.266982622 -22.23168654 1.095290252 6.500541712 -8.341810783 -4.10654828

6.003488 4.944527 4.085045 -0.80126 12.94469 13.66375 2.480592 7.892234 -11.3616 -4.84745 -5.27231 4.154787 -3.92509 -12.1183 6.498601 3.374974 -6.31919 -21.2839 2.04308 7.448331 -7.39402 -3.15876

36.04187 24.44835 16.68759 0.642017 167.5651 186.6982 6.153335 62.28736 129.0869 23.49773 27.79721 17.26225 15.40634 146.8528 42.23181 11.39045 39.9322 453.0043 4.174176 55.47764 54.67155 9.977756

-21.79916228

1531.29

Calculation of beta
RETURN RETURN OF OF COMPANY MARKET Ra-Ra1 5.055698372 4.844 3.996737357 0.729 3.137254902 6.146 -1.74904943 -1.494 11.99690402 12.876 12.71596406 14.729 1.532801962 -2.393 6.944444444 4.77 -12.3094297 -13.004 -5.795235029 -0.396 -6.220095694 -11.003 3.206997085 10.501 -4.872881356 -5.042 -13.06607275 -17.994 5.550811272 6.642 2.427184466 1.454 -7.266982622 -11.7 -22.23168654 -23.89 1.095290252 -7.1039 6.500541712 6.099 -8.341810783 -2.312 -4.10654828 -5.651 -21.79916228 -33.194 5.234244 4.175283 3.3158 -1.5705 12.17545 12.89451 1.711348 7.12299 -12.1309 -5.61669 -6.04155 3.385543 -4.69434 -12.8875 5.729357 2.60573 -7.08844 -22.0531 1.273836 6.679087 -8.16327 -3.928

DATE Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09

Rm-Rm1 5.089695652 0.974695652 6.391695652 -1.248304348 13.12169565 14.97469565 -2.147304348 5.015695652 -12.75830435 -0.150304348 -10.75730435 10.74669565 -4.796304348 -17.74830435 6.887695652 1.699695652 -11.45430435 -23.64430435 -6.858204348 6.344695652 -2.066304348 -5.405304348

(Ra-Ra1)*(RmRm1)

(RmRm1)2

26.64070867 25.9050018 4.069630123 0.95003161 21.19358751 40.8537733 1.960466787 1.55826374 159.762544 172.178897 193.0913574 224.24151 -3.674784012 4.61091596 35.72675008 25.1572029 154.7695116 0.844212845 162.77433 0.0225914

64.99079334 115.719597 36.38339661 115.491467 22.51546311 23.0045354 228.7317546 315.002307 39.46206626 47.4403514 4.428948025 2.88896531 81.19311526 131.201088 521.4311767 559.053128 -8.736226424 47.0349669 42.37677609 40.2551629 16.86779039 4.26961366 21.23205009 29.2173151 1665.261089 2088.83102

Bench Mark Return and Risk (Reliance Vision Fund)

Return = (P1 /P0 *100) - 100 Where, P1 = Current month price, P0 = Previous month price R1 = R/n, Where n=number of months. R1 = -21.799/23

R1 = -0.94 SD = (R- R1)2 /n = 1531.29/23

SD = 8.16

Calculation of Beta
B = [(Ra Ra1)(Rm-Rm1)]/ (Rm-Rm1)2 Where Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market = 1665.261/2088.83

B = 0.79

Calculation of Alpha
Alpha = (Ra1-Rm1)*B = ((-0.94)-(-1.44)*0.79

A= -1.06

2) Franklin India Prima Fund:

Franklin India Prima Fund is mid cap open ended growth fund. Its objective is to achieve long term growth of capital through a research based investment approach. Monthly risk and return from Apr 2007 to Feb 2009 is calculated below.

Calculation of Risk and Return

DATE Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 NET ASSET VALUE 48.3071 49.2019 46.2448 41.0506 42.9791 44.6122 47.4243 48.2666 47.2773 46.1587 39.9036 39.2707 41.9344 42.0336 42.8095 36.6563 36.3775 34.2028 33.0378 34.3100 RETURN % R -0.867377423 4.812 2.633 4.267 0 -0.394 37.115 -2.785 -2.245 -11.186 1.779 -9.539 8.988 -5.628 -16.960 6.843 1.101 -9.953 -30.953 1.208 5.679 3.500 5.135 0.867 0.472 37.983 -1.917 -1.378 -10.3192 2.647 -8.671 9.855 -4.761 -16.093 7.710 1.969 -9.085 -30.086 2.075 32.261 12.254 26.369 0.752 0.223 1442.72 3.678 1.898 106.486 7.007 75.203 97.132 22.671 258.995 59.454 3.878 82.554 905.199 4.308 R-R1 (R-R1)2

Dec-11 Jan-12 Feb-12

32.5143 30.4646 33.6215

8.188 -3.397 -3.842 -19.949

9.055 -2.530 -2.975

82.001 6.402 8.854 3240.309

Calculation of Beta
RETURN OF COMPANY RETURN OF MARKET (RaRa1)*(RmRm1)

DATE Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09

Ra-Ra1

Rm-Rm1

(Rm-Rm1)2

4.812 6.196137 2.633 1.829903 4.267 5.242086 0 -1.82957 -0.394 14.12389 37.115 15.87727 -2.785 -0.06534 -2.245 7.413813 -11.186 -15.3604 1.779 -0.38089 -9.539 -12.4632 8.988 11.7413 -5.628 -5.61109 -16.96 -19.0427 6.843 6.525704 1.101 1.774993 -9.953 -12.2003 -30.953 -25.9669 1.208 -7.13628 8.188 8.425045 -3.397 -3.96388 -3.842 -5.71862 -19.949 -30.5889

5.679347826 3.500347826 5.134347826 0.867347826 0.473347826 37.98234783 -1.917652174 -1.377652174 12.05334783 2.646347826 -8.671652174 9.855347826 -4.760652174 -16.09265217 7.710347826 1.968347826 -9.085652174 -30.08565217 2.075347826 9.055347826 -2.529652174 -2.974652174

7.329059 2.962825 6.375008 -0.69665 15.25681 17.01019 1.067582 8.546735 -14.2275 0.752032 -11.3303 12.87422 -4.47817 -17.9098 7.658626 2.907915 -11.0674 -24.834 -6.00336 9.557967 -2.83096 -4.5857

41.62427656 10.37091883 32.73150961 -0.604235936 7.221778898 646.0870376 -2.047251369 -11.77442836 -171.4887383 1.990138836 98.25222792 126.879938 21.31899917 288.2158243 59.05067204 5.723788606 100.554345 747.1464175 -12.45905551 86.55071771 7.161338497 13.64085586 2096.147075

53.71510908 8.778333297 40.64072983 0.485318126 232.7703192 289.3466394 1.139731801 73.04668296 202.4211239 0.565552463 128.3751945 165.7455978 20.05398665 320.76014 58.65455561 8.45597094 122.4868509 616.7264523 36.04030461 91.35473742 8.01432194 21.02862411 2500.606277

Bench Mark Return and Risk (Franklin India Prima Fund)

Return = (P1 /P0 *100) - 100 Where, P1 = Current month price, P0 = Previous month price R1 = R/n, Where n=number of months. R1 = -19.949/23

R1 = -0.87 SD = (R- R1)2 /n = 3240.309/23

SD = 11.86

Calculation of Beta
B = [(Ra Ra1)(Rm-Rm1)]/ (Rm-Rm1)2 Where Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market = 2096.14/2500.60

B = 0.89

Calculation of Alpha
Alpha = (Ra1-Rm1)*B = ((-0.87)-(-1.32)*0.89

A = -0.40

3) ICICI PVT LTD:

Prudential ICICI FMCG Plan is sector open ended growth fund. Its objective is to achieve long term growth of capital through a research based investment approach. Monthly risk and return from 30th Apr 2010 to 29th Feb. 2012 is calculated below

Calculation of Risk and Return

Month April 10 May 10 June 10 July 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 April 11 May 11 Jun 11 July 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Net Asset Value Return % 30.0000 30.2600 30.4700 34.8100 36.0600 37.1900 39.1900 38.2400 37.5000 37.7000 34.2400 35.6100 35.2600 36.7100 37.5500 40.2600 42.7200 41.8300 40.9200 42.8900 41.4500 40.5000 41.4400 4.098360656 1.349831271 -1.109877913 4.713804714 9.431939979 1.028403526 5.28356762 -10.91160221 -0.671834625 -15.34859521 5.03995083 -3.97893505 -13.40645948 3.9408867 0.609343263 -9.084791386 -27.75721688 0.614754098 9.16496945 -2.798507463 -2.591170825 1.773399015 R R1 5.864003 3.115474 0.655765 6.479447 11.19758 2.794046 7.04921 -9.14596 1.093808 -13.583 6.805593 -2.21329 -11.6408 5.706529 2.374986 -7.31915 -25.9916 2.380397 10.93061 -1.03286 -0.82553 3.539042 (R R1)2 34.3865342 9.70617747 0.43002733 41.9832376 125.385856 7.80669378 49.6913648 83.6485771 1.1964159 184.496602 46.316102 4.89866345 135.508617 32.5644767 5.64055788 53.5699389 675.561933 5.66628847 119.47828 1.06680981 0.68149684 12.5248156

-40.60977992

1632.20947

Calculation of Beta
RETURN OF COMPANY RETURN OF MARKET (RaRa1)*(RmRm1)

DATE April 07 May 07 June 07 July 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08 April 08 May 08 Jun 08 July 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09

Ra-Ra1

Rm-Rm1

(Rm-Rm1)2

4.098360656 6.196137 1.349831271 1.829903 1.109877913 5.242086 4.713804714 9.431939979 1.028403526 5.28356762 10.91160221 0.671834625 15.34859521 -1.82957 14.12389 15.87727 -0.06534 7.413813 -15.3604 -0.38089

5.864003 7.52608917 44.13301146 56.64201825 3.115474 3.15985517 9.844446247 9.98468472 0.655765 6.57203817 4.30971059 43.19168576 6.479447 0.49961783 3.237247384 0.249617972 11.19758 15.4538422 173.045674 238.8212379 2.794046 17.2072222 48.07777254 296.0884949 7.04921 1.26461217 8.914517067 1.59924395 -9.14596 8.74376517 79.97012307 76.45342942 1.093808 14.0304478 -15.3466158 196.8534662 -13.583 0.94906217 12.89106653 0.90071901 6.805593 11.1332478 75.76835832 123.9492072 -2.21329 13.0712522 28.93050368 170.8576334 -11.6408 4.28113783 49.83594145 18.32814109 5.706529 17.7127478 101.0783145 313.7414356 2.374986 7.85565617 18.6570724 61.71133392 -7.31915 3.10494517 22.72555568 9.640684533 -25.9916 10.8703478 282.5374529 118.1644619 2.380397 24.6369478 58.64570938 606.9791982 10.93061 5.80632783 63.46671693 33.71344282 -1.03286 9.75499717 10.07559377 95.15996986 -0.82553 2.63392783 2.174381749 6.937575793 3.539042 4.38866783 15.53167809 19.26040529 153.8624972 2499.228088

5.03995083 -12.4632 -3.97893505 11.7413 13.40645948 -5.61109 3.9408867 0.609343263 9.084791386 27.75721688 -19.0427 6.525704 1.774993 -12.2003

0.614754098 -25.9669 9.16496945 -7.13628 2.798507463 8.425045 2.591170825 -3.96388 1.773399015 -5.71862 - -30.5889

40.60977992

Bench Mark Return and Risk (ICICI PVT Ltd)

Return = (P1 /P0 *100) - 100 Where, P1 = Current month price, P0 = Previous month price R1 = R/n, Where n=number of months. R1 = -40.609/23

R1 = -1.77 SD = (R- R1)2 /n = 1632.209/23

SD = 8.42

Calculation of Beta
B = [ (Ra Ra1) (Rm-Rm1)]/ (Rm-Rm1)2 Where Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market = 153.862/2499.22

B = 0.06

Calculation of Alpha

Alpha = (Ra1-Rm1)*B = ((-1.77)-(-1.32)*0.06

A = -0.02

4) SBI MUTUAL FUND:

SBI mutual fund is open ended growth fund. Its objective is to achieve capital appreciation by investing in diversified stocks. Monthly risk and return from 31 April 2007 to 28th Feb 2009 is calculated below

Calculation of Return and Standard Deviation

Month April 07 May 07 June 07 July 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08 April 08 May 08 Jun 08 July 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09

Net Asset Value

26.4200 26.3300 25.2200 26.2400 27.1700 27.4000 29.1700 29.2300 28.7400 28.9300 26.3700 26.3500 25.1200 24.7900 24.3700 24.6400 24.2600 22.4500 21.7600 22.8400 21.6800 21.0800 22.4300

Return % 3.203098 4.092769 4.554391 -0.12535 13.14716 13.86578 -5.91817 7.481232 -17.341 -5.44872 -10.4468 9.015829 -4.86111 -19.2435 9.942482 -0.74738 -12.0482 -27.6113 7.392076 -4.57048 -3.86613 -3.78151

R R1 5.086356 5.976028 6.437649 1.757906 15.03042 15.74904 -4.03491 9.364491 -15.4578 -3.56546 -8.56358 10.89909 -2.97785 -17.3603 11.82574 1.135875 -10.1649 -25.728 9.275334 -2.68723 -1.98287 -1.89825

(R R1)2 25.87101929 35.71291221 41.4433279 3.09023398 225.9134962 248.0321962 16.28049745 87.69368967 238.9430173 12.71249973 73.33494703 118.7901194 8.867605047 301.3790267 139.8481313 1.290210956 103.3258849 661.9321802 86.03182794 7.221182996 3.931771106 3.603367929

-43.3149

2445.249145

Calculation of Beta
RETURN OF COMPANY RETURN OF MARKET

DATE April 07 May 07 June 07 July 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08 April 08 May 08 Jun 08 July 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09

Ra-Ra1

Rm-Rm1

(Ra-Ra1)*(RmRm1) (Rm-Rm1)2

3.203 4.097 4.554 -0.125 13.457 13.865 -5.918 7.481 -17.341 -5.443 -10.446 9.015 -4.861 -19.243 9.942 -0.747 -12.048 -27.611 7.392 -4.57 -3.866 -3.781 -43.315

4.844 0.729 6.146 -1.494 12.876 14.729 -2.393 4.77 -13.004 -0.396 -11.003 10.501 -5.042 -17.994 6.642 1.454 -11.7 -23.89 -7.1039 6.099 -2.312 -5.651 -33.194

5.086261 5.980261 6.437261 1.758261 15.34026 15.74826 -4.03474 9.364261 -15.4577 -3.55974 -8.56274 10.89826 -2.97774 -17.3597 11.82526 1.136261 -10.1647 -25.7277 9.275261 -2.68674 -1.98274 -1.89774

6.287217 2.172217 7.589217 -0.05078 14.31922 16.17222 -0.94978 6.213217 -11.5608 1.047217 -9.55978 11.94422 -3.59878 -16.5508 8.085217 2.897217 -10.2568 -22.4468 -5.66068 7.542217 -0.86878 -4.20778

31.9784278 12.99042667 48.85377214 -0.089289074 219.6605302 254.6842983 3.832125057 58.18218849 178.7035617 -3.727820726 81.85792462 130.171197 10.7162358 287.3172685 95.60980484 3.291994752 104.2575195 577.5049673 -52.5043079 -20.2639706 1.722569274 7.985273709 2032.734697

39.52910253 4.718528395 57.59622061 0.002578873 205.0399867 261.5406154 0.902087004 38.60407035 133.6516945 1.096664265 91.38944353 142.6643291 12.95123626 273.928405 65.37074026 8.393868612 105.2015895 503.8580495 32.0433276 56.88504318 0.754783221 17.70543448 2053.827799

Bench Mark Return and Risk (SBI BANK Ltd)

Return = (P1 /P0 *100) - 100 Where, P1 = Current month price, P0 = Previous month price R1 = R/n, Where n=number of months. R1 = -40.609/23

R1 = -1.77 SD = (R- R1)2 /n = 2445.24/23

SD = 10.31

Calculation of Beta
B = [ (Ra Ra1) (Rm-Rm1)]/ (Rm-Rm1)2 Where Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market = 2032.73/2053.82

B = 0.98

Calculation of Alpha
Alpha = (Ra1-Rm1)*B = ((-1.77)-(-1.44)*0.98

A = -0.26

5. UTI MUTUAL FUND: Calculation of Return and Standard Deviation

Net Asset Value 42.9400 42.8800 41.7500 44.1900 45.2400 46.4500 51.2200 52.0100 51.2300 52.1200 46.2700 46.6000 49.0900 48.7200 48.2200 48.8800 48.8900 45.4300 44.1500 46.5800 45.1900 41.8700 46.3700 -2.64113 1.864454 2.992587 -0.622 6.652361 4.652918 -3.93335 1.801201 -3.17005 -0.49911 -3.23074 2.196451 -1.4271 -5.76487 2.258214 1.303285 -10.7835 -6.41899 1.027287 -1.01684 26.72017 -0.67556 11.28566 -3.13181336 1.37377351 2.5019065 -1.11268173 6.16167985 4.16223684 -4.42403002 1.31052013 -3.66073309 -0.98979242 -3.72142374 1.70576987 -1.91777833 -6.25555072 1.76753312 0.8126047 -11.2742061 -6.90966725 0.53660665 -1.5075221 26.2294905 -1.16624223 9.808254912 1.887253669 6.259536149 1.238060638 37.96629856 17.3242155 19.57204163 1.717463022 13.40096676 0.979689028 13.84899463 2.909650848 3.677873716 39.13191477 3.124173342 0.660326396 127.1077228 47.74350147 0.2879467 2.27262289 687.9861744 1.360120932 1040.264803

Month April 10 May 10 June 10 July 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 April 11 May 11 Jun 11 July 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12

Return %

R R1

(R R1)2

RETURN OF DATE April 07 May 07 June 07 July 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Mar 08 April 08 May 08 Jun 08 July 08 Aug 08 Sep 08 Oct 08 Nov 08 Dec 08 Jan 09 Feb 09 2.641132692 2.992587169 1.864454181 0.622001066 6.652360515 4.652917505 3.933349355 1.801200801 3.170052425 -0.49911175 3.230743071 2.196450536 1.427097662 5.764870051 2.25821379 1.303285365 10.78352542 6.418986581 COMPANY

RETURN OF MARKET Ra-Ra1 3.13181336 2.5019065 1.37377351 1.11268173 6.16167985 4.16223684 4.42403002 1.31052013 3.66073309 0.98979242 3.72142374 1.70576987 1.91777833 6.25555072 1.76753312 0.8126047 11.2742061 6.90966725 0.53660665 -1.5075221 26.2294905 1.16624223 Rm-Rm1

(RaRa1)*(RmRm1) (Rm-Rm1)2

6.324008714 2.381306558 4.874796112 -1.8651867 13.83890382 14.93576476 1.037350261 9.235340034 -16.67048786 -0.724996962 -13.37695481 11.81952391 -5.955820091 -19.45337198 5.951639098 1.913579465 -13.03238385 -27.10557642

1.027287319 -7.688084547 1.016841436 9.140975847 26.72017121 -4.728859975 0.675561561 -5.680292755

7.838305557 24.54811005 61.439034 3.895603401 9.746435481 15.17572585 6.389092955 8.777166683 40.82050878 0.350889857 0.390428735 0.123123692 15.35320066 94.60150713 235.7207706 16.4500616 68.4690524 270.6045267 2.551647104 11.28856339 6.510902941 10.74963688 14.08761556 115.554693 15.15619102 55.48276999 229.7101262 0.789299881 0.781243036 0.622994302 11.86265797 44.14597695 140.7226541 13.33382075 22.74442968 177.7907759 4.441523248 8.51785703 19.72712877 17.93907514 112.2187943 321.8104168 7.465935941 13.19628907 55.74019947 3.427876308 2.785508394 11.75033598 11.51808701 129.8572866 132.6663283 25.59127958 176.8272263 654.9135904 6.173787704 3.312895556 38.11565462 10.65527269 16.06305909 113.5348361 3.214563132 -84.3163533 10.33341613 4.165995912 4.858560351 17.35552194

11.28565533 -34.82882738

626.3966803 2670.743264

Calculation of Beta:

Bench Mark Return and Risk (UTI)

Return = (P1 /P0 *100) - 100 Where, P1 = Current month price, P0 = Previous month price R1 = R/n, Where n=number of months. R1 = 11.28/23

R1 = 0.49 SD = (R- R1)2 /n = 1632.209/23

SD = 8.42

Calculation of Beta
B = [ (Ra Ra1) (Rm-Rm1)]/ (Rm-Rm1)2 Where Ra = Return on Company, Ra1= Average return on company Rm= Return on market, Rm1= Average return on market = 626.39/2670.74

B = 0.23

Calculation of Alpha

Alpha = (Ra1-Rm1)*B = ((-0.49)-(-1.51)*0.23

A = 0.23

AVERAGE RISK (SD), BETA AND ALPHA OF SELECTED MUTUAL FUNDS

MUTUAL FUNDS Reliance Vision Fund Franklin India Prima Fund ICICI Pvt Ltd SBI UTI Risk(SD) 8.16 11.86 8.42 10.31 8.42 BETA 0.79 0.89 0.06 0.98 0.23 ALPHA -1.06 -0.40 -0.02 -0.26 -0.23

14 12 10 8 6
ICICI Pvt Ltd Reliance Vision Fund

Franklin India Prima Fund

4
SBI

2 0 Risk(SD) -2 BETA ALPHA

UTI

Average risk = 47.17 = 9.434

ANALYSIS:

Franklin India Prima Fund has the highest risk factor of 11.86% with 0.89% Beta and -0.40% of Alpha. Reliance Vision Fund has the lowest risk factor of 8.16% with 0.79% of beta and 1.06% of alpha.

Bench Mark has the risk factor of 9.44%. on an average Mutual Fund Schemes have the risk factor of 9.43%.

INTERPRETATION:
Risk is a major factor influences to all type of investors. In the above selected Mutual Fund Schemes average risk factor is 9 . 4 3 % even though the risk factor of bench mark is 9 . 4 4 %. It is very close to average risk. It is showing Mutual Funds are also risky.

AVERAGE RETURN OF SELECTED MUTUAL FUND SCHEMES MUTUAL FUNDS

Reliance Vision Fund Franklin India Prima Fund ICICI Pvt Ltd SBI UTI

Returns in % -0.94 -0.87 -1.77 -1.77 0.49

Average Return of selected Mutual Funds

=-4.86 =-0.972

0.5

Reliance Vision Fund

Franklin India Prima Fund

-0.5
ICICI Pvt Ltd

-1
SBI

-1.5
UTI

-2 Returns in %

ANALYSIS: UTI Fund has got the highest & positive return of 0.49% ICICI & SBI Mutual fund got the lowest negative return of -1.77% On an average Mutual Fund Schemes have got -0.972% per month.

INTERPRETATION:

Return is a major factor influencing factor to all type of investors. In the above selected Mutual Fund Schemes average return is -0.972%, compared to bench mark return mutual fund returns are also good and it will attract more and more customers.

Comparative Risk of Selected Equity and Mutual Funds

Comparative Risk of Selected Equity and Mutual Funds ACC LIMITED BHEL 15.03 ICICI BANK LIMITED 14.43 L & T PVT LTD. WIPRO AVG EQUITY FRANKLIN INDIA PRIMA FUND RELIANCE MUTUAL FUND PRUDENTIAL ICICI MUTUAL FUND SBI MUTUAL FUND UTI MUTUAL FUND AVG MUTUAL FUNDS 21.21 9.69 2.87 8.16 11.86 8.42 10.31 8.42 1.88 RISK (SD) 11.61

SBI MUTUAL FUND

22
PRUDENTIAL ICICI MUTUAL FUND RELIANCE MUTUAL FUND

17

FRANKLIN INDIA PRIMA FUND

12

AVG EQUITY

WIPRO

7
L & T PVT LTD.

ICICI BANK LIMITED

BHEL

-3

ACC LIMITED

ANALYSIS:

The Average Risk of Equity is 2.87and Average Risk of Mutual funds is 1.88.

The highest Risky Equity is Larsen and Toubro with 9.69%

The highest Risky Mutual fund is Reliance Mutual Fund with 11.86%

The lowest Risky Mutual fund is Franklin India Prima Fund with 8.16%

INTERPRETATION:

The average risk of equity is much more than the average risk of Mutual funds

By individually also equities Risk is greater than the Mutual funds Risk

From the point of view of Risk the Equity is more risky then Mutual Fund for investment.

Comparative Return of Selected Equity and Mutual Funds

Comparative Return of Selected Equity and Mutual Funds ACC LIMITED BHEL ICICI BANK LIMITED L & T PVT LTD WIPRO Pvt Ltd AVG EQUITY FRANKLIN INDIA PRIMA FUND RELIANCE MUTUAL FUND PRUDENTIAL ICICI MUTUAL FUND SBI MUTUAL FUND UTI MUTUAL FUND AVG MUTUAL FUNDS Returns -1.19 -1.19 -3.05 -1.49 -3.81 -2.14 -0.94 -0.87 -1.77 -1.77 0.49 -0.97

1 0.5 0 -0.5 -1 -1.5 -2 -2.5 -3 -3.5 -4 -4.5 1

ACC LIMITED BHEL ICICI BANK LIMITED L & T PVT LTD. WIPRO Pvt Ltd AVG EQUITY FRANKLIN INDIA PRIMA FUND RELIANCE MUTUAL FUND PRUDENTIAL ICICI MUTUAL FUND SBI MUTUAL FUND UTI MUTUAL FUND AVG MUTUAL FUNDS

Analysis:

The Average Return of Equity is -2.14% and Average Return of Mutual funds is -0.97% The lowest negative Return in Equity is ACC Ltd & BHEL with -1.19% The highest negative Return in Equity is Wipro Pvt Ltd with -3.81% LIMITED ACC
1.2

The highest Return in Mutual fund is UTI Mutual Fund with 0.49% BHEL The lowest Return in Mutual fund is PRUDENTIAL ICICI MUTUAL FUND &
1
ICICI BANK LIMITED

SBI MUTUAL FUND with -1.77%

L & T PVT LTD.

Interpretation:

0.8

WIPRO

AVG EQUITY

0.6

FRANKLIN INDIA PRIMA FUND

The average Return of equity is much more than the average Return of Mutual funds
RELIANCE MUTUAL FUND

PRUDENTIAL ICICI By individually also equities Return is greater than the Mutual funds Return. MUTUAL FUND SBI MUTUAL FUND

0.4

0.2 From the point of view of Return the Mutual Fund is best for investment because it yields UTI MUTUAL FUND

more return comparing to Equity,

0

AVG MUTUAL FUNDS

Comparative Alpha of Selected Equity and Mutual Funds

Comparative Alpha of Selected Equity and Mutual Funds ACC LIMITED BHEL ICICI BANK LIMITED L & T PVT LTD. WIPRO Pvt Ltd AVG EQUITY FRANKLIN INDIA PRIMA FUND RELIANCE MUTUAL FUND PRUDENTIAL ICICI MUTUAL FUND SBI MUTUAL FUND UTI MUTUAL FUND AVG MUTUAL FUNDS Alpha 0.15 0.17 -2.13 -0.09 -1.80 -0.74 -1.06 -0.40 -0.02 -0.26 -0.23 -0.39

0.5

ACC LIMITED BHEL

0 1

ICICI BANK LIMITED L & T PVT LTD.

-0.5 WIPRO Pvt Ltd -1 AVG EQUITY FRANKLIN INDIA PRIMA FUND -1.5 RELIANCE MUTUAL FUND PRUDENTIAL ICICI MUTUAL FUND SBI MUTUAL FUND -2.5 UTI MUTUAL FUND AVG MUTUAL FUNDS

-2

Analysis:

The Average Alpha of Equity is -0.74% and Average Alpha of Mutual funds is - 0.39 %

The highest Alpha in Equity is BHEL with 0.17% The lowest Alpha in Equity is ICICI BANK LIMITED with 2.13%

The lowest negative Alpha in Mutual fund is PRUDENTIAL ICICI MUTUAL FUND with -0.02 % The highest negative Alpha in Mutual fund is FRANKLIN INDIA PRIMA FUND with 1.06%

Interpretation:

The average Alpha of Mutual funds is much more than the average Alpha of equity, the equity are outperforming its Benchmark and Mutual funds are under performing its Benchmark

By individually also Mutual funds Alpha is greater than the equities Alpha.

Comparative Beta of Selected Equity and Mutual Funds

Comparative Beta of Selected Equity and Mutual Funds ACC LIMITED BHEL ICICI BANK LIMITED L & T PVT LTD. WIPRO Pvt Ltd AVG EQUITY FRANKLIN INDIA PRIMA FUND RELIANCE MUTUAL FUND PRUDENTIAL ICICI MUTUAL FUND SBI MUTUAL FUND UTI MUTUAL FUND AVG MUTUAL FUNDS Beta 0.60 0.79 1.32 1.85 0.76 1.06 0.79 0.89 0.06 0.98 0.23 0.59

2 1.8 1.6 1.4

ACC LIMITED BHEL ICICI BANK LIMITED L & T PVT LTD.

1.2 1 0.8 0.6 0.4 0.2 0 1 WIPRO Pvt Ltd AVG EQUITY FRANKLIN INDIA PRIMA FUND RELIANCE MUTUAL FUND PRUDENTIAL ICICI MUTUAL FUND SBI MUTUAL FUND UTI MUTUAL FUND

Analysis:

The Average Beta of Equity is 1.06% and Average Beta of Mutual fund is 0.59%.

The highest Beta in Equity is Larsen & Toubro Ltd with 1.85%

The lowest Beta in Equity is ACC Ltd with 0.60%

The highest Beta in Mutual fund is SBI MUTUAL FUND with 0.98 %

The lowest Beta in Mutual fund is UTI MUTUAL FUND with 0.23%

Interpretation:

The average Beta of Equity is much more than the average Beta of Mutual funds, the equity are more volatile and Mutual funds are not as volatile as Equity.

By individually also equities Beta is greater than the Mutual funds Beta; means the Equity are more risky.

FINDINGS, CONCLUSION AND SUGGESTIONS

Saving money is not enough. Each of us also need to invest ones savings intelligently in order to have enough money available for funding the higher education of ones children, for buying a house, or for ones own golden years.

FINDINGS:
Investments in both equity capital and mutual fund schemes are subjected to market risk. L & T LTD has a highest risk factor of 21.21% and Wipro Pvt LTD has a lowest risk factor of 9.69%, which shows investing in equity is more risky. ACC Ltd has a lowest negative return on a monthly average of -1.19% and Wipro LTD has a highest negative return on a monthly average of -3.81%, which shows higher the risk higher the return.

Franklin India Prima Fund has higher risk factor of 11.86% with a highest return of 0.49% of UTI.

On the basis of above analysis mutual funds have a risk factor on an average, and 1.88% their returns are -0.97% per month On the basis of above analysis Equity shares have a risk factor on an average, and 2.87% their returns are -2.14% per month On the basis of above statements it has proved that higher the risk, higher the return and lower the risk lower the return The average Beta of equity is much more than the average Beta of Mutual funds, the equity are more volatile and Mutual funds are not as volatile as equity.

 The average Alpha of equity is much more than the average Alpha of Mutual funds, the equity are outperforming its Benchmark and Mutual funds are under performing its Benchmark Investment in mutual fund schemes gives diversified portfolio to investors. In case of both equities and mutual funds(open ended) liquidity is very high, with in three working days mutual funds will converted into cash and liquidity of equity is based on demand and supply conditions of the market for a particular scrip.

CONCLUSION

Saving money is not enough. Each of us also need to invest ones savings intelligently in order to have enough money available for funding the higher education of ones children, for buying a house, or for ones own golden years. The study will guide the new investor who wants to invest in equity and mutual fund schemes by providing knowledge about how to measure the risk and return of particular scrip or mutual fund scheme. The study recommends new investors to go for mutual funds rather than equities, because of high risk and market instability. From the calculation it is found that the average risk of equities based on sample size is 2.87% & they are earning -2.14% returns per month where as mutual funds average risk based on sample size is1.88% only & they are earning -0.97% per month. Mutual Funds are better option for investment who doesnt have time for in-depth analysis

SUGGESTIONS:
Investment in both equity capital and mutual fund schemes are subjected to market risk. Following are the recommendations given to investors for investing rationally in equity capital and mutual fund schemes Some Investors are ready to take Very high Risk to get very high Returns, such investors can go for equity or aggressive growth funds Some investors are ready to take High Risk to get high returns, such investors can go for equity or growth Mutual funds

Some investors are ready to take Moderate Risk to get Good Returns; such investors can go for Equity which are not volatile or Mutual funds (dividends). Some investors are ready to accept Low Risk to get good Returns , such Investors can balance his investment by investing 40- 50% in equity and remaining in the bonds.

Some investors are conservative and they want stable Returns, such investors can go for Bonds or Fixed/Floating rate mutual funds. Some investors want to get Tax benefit such Investors can go for tax saving funds or Govt. bonds.

Mutual Funds are better option for investment who doesnt have time for in-depth analysis.

BIBLIOGRAPHY
Key information memorandums. Franklin Templeton KIM Sundaram mutual fund KIM Tata mutual fund KIM

Author Investment Management

Title of Book Preeti Singh

Edition
Eleventh Edition

Publishers Himalaya Publishing House.

www.amfiindia.com / Historical NAVs of mutual fund schemes www.bseindia.com / Historical share prices of companies.

ANNEXURES
BSE Sensex Companies: ACC Ltd. Bharat Heavy Electricals Ltd ICICI Bank Ltd . L & T Ltd. Wipro Ltd. Mutual Fund Companies in India: Reliance Vision Fund Franklin India Prima Fund ICICI Pvt Ltd. SBI Bank Ltd. UTI