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COMPARATIVE ANALYSIS

OF MUTUAL FUNDS
MUTUAL FUND OPERATION
FLOW CHART
TYPES OF MUTUAL FUNDS
SCHEMES
 According to Maturity Period
 Open Ended
 Close Ended

 According to Investment Objective


 Growth/Equity Oriented Scheme

 Income / Debt Oriented Schemes

 Balanced Scheme
INSTRUMENTS OF
INVESTMENT
 EQUITY
 CONVERTIBLE DEBENTURES

 FIXED INCOME SECURITIES

 SHORT TERM SECURITIES


Facilities Provided by Mutual
Funds to the Investors
 Systematic Investment Plan (SIP)
 Systematic Withdrawal Plan (SWP)
 Systematic Transfer Plan (STP)
 Dividend Transfer Plan (DTP)
 Auto debit facility and Electronic Clearing
Service (ECS)
 Switching
INTRODUCTION TO THE
ORGANIZATION
SHAREKHAN BACKGROUND
 Retail broking arm of the Mumbai based
SSKI group.
 Established in 1922

 Share khan's ground network includes

over 700+ Share shops in 130+ cities in


India.
 SSKI group ventured into institutional

broking and corporate finance 18 years


ago.
OBJECTIVES OF THE STUDY
The present study focuses on the
comparative analysis of mutual funds
schemes performance.
 To evaluate the schemes on the basis

of risk and return by calculating Beta,


Alpha, Standard Deviation.
RESEARCH METHEDOLOGY
 TYPE OF RESEARCH
-- Descriptive cum Analytical research
has been used because the researcher has
no control over the variables. He can only
report what has happened or what is
happening. . In Analytical Research, the
researcher has to use facts and
information already available and make
an analysis on the basis of these only.
DATA COLLECTION
 The data has been collected from the
secondary sources i.e.
-- Fact sheets
-- Annual Reports
-- Offer Documents
NAVs of selected schemes and
closing values of S&P CNX 500 have
been noted from www.amfindia.com and
Mutual Fund House’s Personal Sites.
SAMPLE & SAMPLING
TECHNIQUE
 SAMPLE SIZE: 7 Schemes of 4 Mutual Fund
Companies namely Franklin Templeton,
Reliance, HDFC and ICICI Prudential has
been selected.
 SAMPLING TECHNIQUE: In the present
study Convenience Sampling technique has
been used.
DATA ANALYSIS AND FINDINGS
The following parameters have been chosen
for comparison:
 Fund Objective
 Fund Style
 Fund Details
 History
 Portfolio Characteristics
 Sectoral Allocation
 Portfolio Concentration
 Performance
 Analysis
Following Test’s have been applied:

 BETA
 ALPHA

 STANDARD DEVIATION
BETA
 A Beta is a measure of risk. It compares a
mutual fund’s volatility with that of a
benchmark. If the beta of the stock is 1, it
means that the returns in the stock are highly
correlated to the benchmark index.
 If Beta is greater than 1, it means the stock is
more volatile.
 If Beta is less than 1, than the stock is less
volatile.
COMPARATIVE ANALYSIS
(BETA)
 LARGE CAP FUND
0.96
0.94
0.92
0.9
0.88 BETA
0.86
0.84
Franklin HDFC PRU ICICI Reliance
India TOP 200 Growth Vision
Bluechip
 MID CAP FUND

1
0.98
0.96
0.94
0.92
0.9
BETA
0.88
0.86
0.84
Franklin HDFC Reliance
Prima Capital Growth
Builder
ALPHA
 Alpha is a financial term describing that part
of an investor’s return that is due to the skills
of the investment manager, as distinct from the
return of the market as a whole.
• αi < rf: the manager or firm has destroyed
value
• αi = rf: the manager or firm has neither created
nor destroyed value
• αi > rf: the manager or firm has created value
 LARGE CAP FUNDS

5
4.5
4
3.5
3
2.5
2
ALPHA
1.5
1
0.5
0
Franklin HDFC PRU ICICI Reliance
India TOP 200 Growth Vision
Bluechip
 MID CAP FUNDS

6
5
4
3
2
1
ALPHA
0
-1
-2
-3
Franklin HDFC Reliance
Prima Capital Growth
Builder
STANDARD DEVIATION
 The total risk of a given fund is
measured in terms of standard
deviation.
 It tells us how much the values have

deviated from the mean of the values.


STANDARD DEVIATION
 LARGE CAP FUNDS
26
25.5
25
24.5
24
23.5
23
STANDARD
22.5 DEVIATION
22
21.5
Franklin HDFCTOP PRU ICICI Reliance
India 200 Growth Vision
Bluechip
 MID CAP FUNDS

29
28
27 STANDARD
DEVIATION
26
25
24
23
22
Franklin HDFC Reliance
Prima Capital Growth
Builder
FINDINGS
 ICICI PRU--
-This fund has an aggressive stock-picking style, but
with a careful eye on risk control.
-The fund has a great exposure to banking and
software sector stocks.
 FRANKLIN TEMPLETON—

- Franklin India Blue-chip fund is one of the biggest


diversified equity funds and is one of the most
preferred large cap funds.
- One of the astonishing features of the fund’s
investment style is the buy-and hold-strategy.
 RELIANCE
-High returns can be expected from this fund
but its aggressiveness does not make it apt for
conservative investors.
 HDFC

-The fund's exposure to large-cap stocks is a


cushion in the falling markets. It has not been
a top performer as some of the other mid-cap
funds, but quite a consistent one
-This fund is a good bet for those wanting to
invest in mid-caps but not willing to take too
much of a risk.
CONCLUSIONS
 Best option consider by the investors when it
comes to investing their money in Mutual
Funds.
 This industry is growing at a good pace.
 Money Invested in Mutual Funds is safe.
 Investors who are looking for very high instant
returns, mutual funds are not recommended;
they are meant for investors committed to
patient investing.
RECOMMENDATIONS
Following suggestions can be made so that the
mutual fund houses can design their schemes
in such a manner that it can improve their
performance as compared to other AMC’s.
 A thorough analysis should be done while

selecting the securities for a particular


portfolio.
 Fundamental security analysis should also be

done i.e. the relationship between a security’s


return and economy wide events.
THANK YOU..!!