RITU YADAV Click to edit Master subtitle style

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INTRODUCTION
Title of Summer Project: COMPARITIVE STUDY OF EQUITY MUTUAL FUNDS &ANALYSIS OF THEIR FINANCIAL RATIOS Industry Mentor: Mr. Devesh Yadav Faculty Mentor: Prof. M.Y. Khan Area: Marketing Subject: Penetration & integration
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What is a MUTUAL FUND?

Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities.
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Types of MUTUAL FUNDS

DEBT FUND EQUITY FUND : Diversified, Sector, Thematic, Equity linked saving schemes(ELSS)

HYBRID FUND

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Objective of the Project

To get an insight about mutual funds To understand different financial ratios to analyze four large cap equity funds To know the awareness of mutual fund among people To evaluate the consumer feedback on mutual funds
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ABOUT

Company Profile- HDFC Asset Management Company Limited (AMC) Vision Statement To be a dominant player in the Indian Mutual Fund space recognized for its high levels of ethical and professional conduct and a commitment towards 4/15/12 enhancing investors needs.

Birth of Company: 10 Dec 1956 Schemes operated: 28 open ended schemes & 8closed

ended schemes

.Achievements:

HDFC Management Company

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Asset

Limited was

Research Methodology

Data Source: Primary & Secondary Primary Data: Questionnaire Secondary Data: books, journals & websites

Sampling Area: Bulandsher, Anupsher & Aligarh

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Findings

More than 62%people know about mutual funds & out of those most prefered are equity mutual funds.

45% people prefer Insurance as a good option for investment while 28% prefer Mutual funds.

Internet, magazines & newspaper is the source of information

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Findings

52% people prefer higher returns at the time of investment while 18% prefer lower risk.

42% people prefer investing their money at frequent intervals.

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Comparison of 4large equity funds:

HDFC Equity Reliance Vision Franklin Templeton India Prima Birla Sun Life Equity

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Finding
Latest NAV of four large cap equity funds as on 28july 2010

Reliance Vision=269.08 HDFC Equity Fund=262.24 Franklin Templeton=208.81 Birla Sun Life equity fund=84.82

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Ratios used for calculation

v

Sharpe Ratio: represent trade b/w return & risk

BETA() :Beta 1 means security price move with market, less than 1 securities are less volatile n more than 1 more volatile than market.

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Standard Deviation: quality rating of

Finding

Beta of 4large cap equity funds HDFC Equity fund=0.87 Birla Sun Life=0.84 Relance Vision=0.79 Franklin Templeton=0.79

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Finding

Sharpe Ratio of 4large cap equity funds HDFC Equity fund=-0.08 Birla Sun Life=-0.09 Relance Vision=-0.13 Franklin Templeton=-0.09

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Finding

Standard Deviation of 4large cap equity funds HDFC Equity fund=5.28 Birla Sun Life=4.99 Relance Vision=4.7 Franklin Templeton=4.79

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 Schemes Annual
Returnsfor last 5years(in% )
45 40 35 30 25 20 15 10 5 0 HDFC Equity Fund Franklin India Prim Plus a BirlaSun Life Equity Fund Reliance Vision 6m onths 20.87 12.51 12.36 13.39 1 year 42.01 27.07 27.66 29.45 3 year 15.82 9.51 12.74 7.67 5 year 26.56 22.94 25.11 21.77

e l t i T s i x A

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