A Study On Mutual Funds: Master of Business Administration

A STUDY ON MUTUAL FUNDS
Done AT
KARVY STOCK BROKING LIMITED, HYDERABAD
Project report submitted to
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY
ANANTAPUR, ANANTHAPURAMU
in partial fulfillment for the award of degree of

MASTER OF BUSINESS ADMINISTRATION
By
Mr. SHAIK MOHAMED HAKEEM

Reg. No. 19HD1E00L5
Under the Guidance of

Mr. M. RAGHAVA REDDY M.B.A., (Ph.D)
Assistant Professor
Department of Management Studies

SRI SAI COLLEGE OF IT & MANAGEMENT
(Approved by AICTE & Affiliated to JNTUA, Ananthapuramu)
BUDDAYAPALLI, Kadapa
2019-2021
CERTIFICATE
This is to certify that the project work entitled “A STUDY ON MUTUAL FUND” done for
“KARVY STOCK BROKING”,HYDERABAD is submitted by Mr. SHAIK MOHAMED
HAKEEM (Roll No. 19HD1E00L5) for the award of degree of MASTER OF BUSINESS
ADMINISTRATION to JNTUA, Ananthapuramu is a bonafide record of independent
research work under taken by her under the supervision of Mr. M. RAGHAVA REDDY,
M.B.A., (Ph.D) Assistant Professor and the project has not been submitted earlier
either in part of whole for the award of any other degree or diploma of any other
university.
Mr. M. RAGHAVA REDDY Dr. V. Mallikarjuna

M.B.A. (Ph.D) B.Tech., M.B.A., Ph.D.,
Assistant Professor Principal
Project Guide
External Examiner
DECLARATION
I hereby declare that the project report entitled “A STUDY ON MUTUAL
FUNDS” done for “KARVY STOCK BROKING LIMITED”, HYDERABAD
submitted by me in partial fulfillment of the requirements for award of the degree
of Master of Business Administration of JNTUA, ANANTHAPURAMU is the
original work carried out by me under the guidance of Mr. M. RAGHAVA
REDDY, M.B.A., (Ph.D) Assistant Professor, Sri Sai college of IT &
Management, Kadapa and it has not been submitted previously in part or full to
any other university or institute.
Place: Kadapa (SHAIK MOHAMED HAKEEM)
Date: (19HD1E00L5)
ACKNOWLEDGEMENTS
I am very happy to present this dissertation report on “MUTUAL

FUND” done for KARVY STOCK BROKING LIMITED, HYDERABAD as a
part of Master of Business Administration.
It gives me a great pleasure to acknowledge my deep sense of gratitude
to Mr. K. Surya Narayana Reddy, M.Sc., M.Phil., Correspondent of Sri Sai
college of IT & Management, Kadapa for his support.
I am thankful to Dr. V. Mallikarjuna, B.Tech., M.B.A., Ph.D., Principal
of Sri Sai college of IT & Management for making it convenient for me to
undertake this project work.
I sincerely thank my guide Mr. M. RAGHAVA REDDY, M.B.A.
(Ph.D) Assistant Professor of Sri Sai college of IT & Management, for his
guidance and valuable suggestions, continuous support and encouragement. He

played a significant role in bringing out this report. The stimulus provided and
encouraging feedback helped me sustain my spirits.
I would like to express my cordial gratitude to KARVY STOCK
BROKING LIMITED, HYDERABAD of for giving this opportunity to
undertake project in such an esteemed organization.
My special acknowledgements to all the faculty members of Sri Sai
College of IT & Management, Kadapa, for generously sharing their insight and
experiences with me.
Finally, much credit goes to my beloved parents, and close friends for
their contribution, who gave right inspiration, encouragement and support in
my efforts in successful completion of the project work.
SHAIK MOHAMED HAKEEM

(Reg. No: 19HD1E00L5)
CONTENTS
CHAPTER TITLE PAGE No.
No.
TITLE PAGE
COLLEGE CERTIFICATE
COMPANY CERTIFICATE
DECLARATION
ACKNOWLEDGEMENTS
EXECUTIVE SYNOPSIS
CHAPTER- 1 INTRODUCTION TO THE TOPIC 1-11
CHAPTER-II INDUSTRY PROFILE & 12-32
COMPANY PROFILE
CHAPTER- III RESEARCH METHODOLOGY 33-37
CHAPTER – IV DATA ANALYSIS & INTERPRETATION 38-78
CHAPTER - V FINDINGS, SUGGESTIONS& CONCLUSION 79-83
ANNEXURES – ANNUAL REPORTS -
BIBLIOGRAPHY 84
SRI SAI COLLEGE OF IT & MANAGEMENT:: KADAPA
A STUDY ON “MUTUAL FUNDS” IN
KARVY STOCK BROKING, HYDERABAD.
PROJECT WORK DONE BY UNDER THE GUIDANCE OF

SHAIK. MOHAMMED HAKEEM, Mr. M. RAGHAVA REDDY, M.B.A.,
Roll No. 19HD1E00L5, ASSISTANT PROFESSOR.
MBA II- IV SEMESTER.
INTRODUCTION
Balancing of funds in any economy is very important which includes issuing
& collecting of funds. Not only for balancing but also to provide liquidity for ideal
capital there are many financial products such as bank deposits, NSS savings,
securities, insurance etc., in India, which have some risk & returns.
INDUSTRY PROFILE
Capital market is the backbone of any country’s economy. It facilitates
conversion of savings to investments. Capital market can be classified as primary and
secondary market. The fresh issue of securities takes place in primary market and
trading among investors takes place in secondary market. Primary market is also
known as new issue market. Equity first enter capital market though investment in
primary market. In India, common investors participating in the equity primary market
is massive. The number of companies offering equity though primary markets
increased continuously in the post-independence period till the year 1995.
COMPANY PROFILE
The KARVY group was formed in 1983 at Hyderabad, India. Karvy ranks
among the top player in almost all the field it operates. Karvy Computers shares Ltd is
India’s largest Register and Transfer Agent with a client base of nearly 500 blue chips
corporate managing over 2 core accounts. Karvy stock brokers Ltd, member of
National stock Exchange of India. With over 6,00,000 active accounts, it ranks among
the top 5 Depository Participated in India, registered with NSDL and CDSL Karvy
COM trade, Member of NCDEX and MCX ranks among the top0 3 commodity
brokers in the country.
NEED FOR THE STUDY
The study basically made to educate the investors about Mutual Funds.
Analyze the various schemes to highlight the risk and return of diversity of investment
that mutual funds offer
OBJECTIVES OF THE STUDY
The following are the important Objectives formulated by me from the project study.
¾ To know risk & return involved in different types of mutual funds schemes.
¾ To evaluate the benefits of investing in mutual funds.
SCOPE OF THE STUDY
The study here has been limited to analyze open-ended debt schemes of
different assets management companies namely ICICI, HDFC, and ING & SAHARA
mutual funds.
RESEARCH METHODOLY
SOURCE OF THE DATA
• Two sources of collection data have been employed i.e., Primary data and
Secondary data.
PRIMARY DATA:
Primary data is a direct data this information is collected directly with face-to-
face information in company.
SECONDARY DATA:
The secondary data collected from the different sites, broachers, newspapers,
company offer documents.
LIMITATIONS OF THE STUDUY
The time period for the project was limited to only one and half month and
information provided is limited to the extent of internet and journals.
• A good number of explanatory variables must be taken in to consideration in
order to assess the share price movement. But due to time constraints detailed
analysis of each company were not made.
FINDINGS
Saving money is not enough. Each of us also need to invest one’s savings
intelligently in order to have enough money available for funding the higher education
of one’s children, for buying a house, or for one’s own golden years.
Investments in both equity capital and mutual fund schemes are subjected to
market risk
SUGGESTIONS
¾ Now a day’s Indian capital market is attracting more and more foreign
institutional investors (FII’s) because of economic stability and increasing
growth rate, it leads to gradual increase in the stock market indices
¾ This is the right time to invest in share and mutual funds because of above
reason.
CONCLUSION
Saving money is not enough. Each of us also need to invest one’s savings
of one’s children, for buying a house, or for one’s 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.
CHAPTER – I
INTRODUCTION TO MUTUAL FUNDS
Balancing of funds in any economy is very important which includes issuing &
collecting of funds. Not only for balancing but also to provide liquidity for ideal capital
there are many financial products such as bank deposits, NSS savings, securities,
insurance etc., in India, which have some risk & returns. But in recent times there are
new types of products developed in the financial markets such as derivatives,
commodities, mutual funds among which mutual funds is one of best source of
investment to the financial markets and investors. Which are developed in U.S and
landed into India where it is growing at slow phase?
This project is to create an idea of which type of fund is better from the investor
point of view in the standard chartered Mutual Fund Company.
A mutual fund is a trust that pools the money of a number of investors and
invests it in different types of securities to earn a return. The money held in the trust is
divided into shares of equal value called “units”. Investors become “unit-holders” and
are allotted units based on the amount of their investment. The trustees of the mutual
fund trust appoint an Asset Management Company (AMC) to manage the investments.
They also appoint registrars, auditors, custodians and other service-provides to support
the smooth functioning of the fund. The decisions on how to invest the money in the
trust are taken by the AMC, which is an investment management
MEANING OF MUTUAL FUND:
The meaning of mutual fund we have to know about stocks and bonds.
Stocks: The no of stocks held by investors in a public company. IBM,
Microsoft, companies.
Bonds: It means GOVT or a company borrows money from you and you receive
interest for that process. Now your money is bonded with them for a specific period.
Mutual funds mean there is financial committee which pools the money& allows the
fund manager to invest it in different growing sectors.
NEED FOR THE MUTUAL FUND:
A mutual fund basically made to educate the investors about Mutual Funds.
that mutual funds offer. Thus through the study one would understand how a common
1
man could fruitfully convert a pittance into great penny by wisely investing into the
right scheme according to his risk- taking abilities
SCOPE OF MUTUAL FUNDS:
The mutual fund here has been limited to analyze open-ended debt schemes of
mutual funds. Each scheme is analyzed according to its performances against the other,
based on factors like Sharpe‟s ratio, treynor‟s ratio, Jensen‟s Ratio, Beta co-efficient,
returns. Pie charts are used to reflect the portfolio risk and return.
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 Objective:
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:
2
Growth / Equity Oriented Scheme:
The aim of growth funds is to provide capital appreciation over the medium to
long- term. 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, ECT. 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
3
in the same weight age comprising of an index. NAV‟s 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.
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.
Concept of Equity Capital and Mutual Fund
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
4
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, it‟s been shown that over long tenures, equities–with their risk
premium–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 17-year bond gives you only 5.5 per cent. So, it is
imperative that these people have some exposure to equity.
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. There 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.
5
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 point out that scarcely over 20% of mutual funds
outperform the Standard and Poor's 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.
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,
high-level 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'.
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
6
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.
7
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.
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 company‟s
management may be vitiated by manipulation of votes, clique-formation, abuse of
proxy rights etc.,
4. High risk: -
Equity shareholders 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 less
remunerative.
8
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.
6. 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.
7. 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.
8. 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).
9. 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.
10. 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
9
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 are trusting someone else with your money when you invest
in a mutual fund.
11. Trading Limitations:-Although mutual Funds are highly liquid in general, most
mutual funds (called open-ended 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.
12. 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.
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.
Organization of Mutual funds:-
10
The units are available continuously for sale on all working days at NAV related
prices excepting during the period when there is a book closure.
Net Asset Value (NAV) denotes the performance of a particular scheme of a mutual
fund.
Mutual funds invest the money collected from the investors in securities
markets. In simple words, Net Asset Value is the market value of the securities held by
the scheme. Since market value of securities changes every day, NAV of a scheme also
varies on day-today basis. The NAV per unit is the market value of securities of a
scheme divided by the total number of units of the scheme on any particular date.
For example, if the market value of securities of a mutual fund scheme is Rs
200 lakhs and the mutual fund has issued 10 lakhs units of Rs. 10 each to the investors,
then theNAV per unit of the fund is Rs.20. NAV is required to be disclosed by the
mutual funds on regular basis - daily or weekly - depending on the type of scheme.
NAV of units under each scheme / plan shall be calculated as shown below:
Market or fair value of the scheme/plan‟s investment+ Current Assets

(including accrued income) – Current Liabilities and Provisions (including accrued
Expenses)
NAV (Rs.) per unit = Number of units outstanding under the scheme /plan
11
CHAPTER - II
INDUSTRY & COMPANY PROFILE
INDUSTRY PROFILE
Capital market is the backbone of any country‟s economy. It facilitates
conversion of savings to investments. Capital market can be classified as primary and
secondary market. The fresh issue of securities takes place in primary market and
trading among investors takes place in secondary market. Primary market is also
known as new issue market. Equity first enter capital market though investment in
primary market. In India, common investors participating in the equity primary market
is massive. The number of companies offering equity though primary markets
increased continuously in the post-independence period till the year 1995. After 1995,
there is a continuous slump experienced by the primary market offering equity. The
main reason for slump is lack of investors‟ confidence in the primary market. So it is
important to understand the causes and measures of revival of investors‟ confidence
leading to capital mobilizing and investment in right avenues creating, economic
growth in the country.
Globally, there are increased evidences to suggest that investor confidence has
assumed an important role in the economic development of a country. The economist
(1998) indicated that a lot of issues need to address to make capital markets safer.
Transparency, strengthening financial system and managing crises are the issues,
which cannot be quickly fixed. But they add up to a stronger system.
“The Securities market is the market for equity, debt and derivatives.” The
securities market has essentially 3 categories that is the issuer of securities, the
investors in the securities and intermediaries. The issuers are the borrowers or deficit
savers, who issue securities to raise funds. The investors, who are surplus savers,
deploy their savings by subscribing to these securities. The intermediaries were the
agents who match the needs of the users and suppliers of funds for a commission.
These intermediaries pack and unpack securities to help both the users and
investors to achieve their respective goals. There are a large variety and number of
intermediaries providing various services in the Indian Securities market. This process
of Mobilizing of resources is carries out under the supervision and overview of
regulators. The regulators develop fair market practices and regulate the conduct of
12
issuer‟s securities and intermediaries. They are also in charge of protecting the interest
of the investors. The regulator ensures a high service standard from the intermediaries
and supply of equity securities and non-manipulated demand for them in the market.
Equity Culture In The Indian Financial System
The capital market services as a reliable guide to the performance and the
financial position of companies and ties up companies and there by promoters
efficiency. It values firms accurately and ties up manager composition to stock value
and there by provides incentives to managers to maximize firm value. It thus helps to
align the interests of the managers and there by efficient resources allocation growth.
A near continuous valuation of companies as reflected in share prices and the implied
possibility of mergers and takeovers are conducive to financial discipline and more
efficient allocation of capital. Stock market promoter‟s growth through the creation of
liquidity. Many profitable investments require long term capital but investors are often
reluctant to control over their savings for long periods. Equity market makes
investment less risky, more profitable and more attractive by making it more liquid. By
facilitating long term and more profitable investment, liquid stock market improves the
allocation of capital and enhances growth. Through these effects, stock market
liquidity can lead to more savings and investment also. Historically, many investors
and been made much before they become innovations. Inventions become innovations
and ignited industrial revolution when liquid financial market made it possible to
develop projects that require large capital injections for long periods. The industrial
revolution had wait the financial revolution took place. Since high projects tend to
comparatively risky, stock market that facilitates risk diversification through
international integration can encourage a shift to higher return projects and thereby
help to promote growth. Large active and liquid stock markets induce investors to
research and monitor firm and the resulting improved information improves resource
allocation and accelerates growth.
STOCK EXCHANGE IN INDIA
The market for long term securities like bonds. Equity stock and preferred
stocks are divided in two primary and secondary markets. The primary market deals
with the new issues of securities. Outstanding securities are traded in the secondary
market which is commonly known as stock market or stock exchange. In the
Secondary market the investors can sell n buy securities. Stock markets predominantly
13
deal in the equity share. Debt instruments like bonds and debentures are also traded in
the stock market. Well regulated and active stock market promotes capital formation.
Growth of the primary market depends on the stock market. The health of the company
reflected by the growth of the stock market.
The origin of the stock exchange in India can be traced back to the later of the
19th century. After the American civil war (1860-61) due to the share mania of public,
the number of brokers dealing in share increased. The brokers organized an informal
association of brokers dealing in share increased. The brokers association” in 1975. At
presently in India there are 23 stock Exchanges are there and situated in various part of
the country. All the stock exchanges in India are controlled by SEBI (Security
Exchange Board of India).
FUNCTIONS OF STOCK MARKET
 Provide quotations of share/ stock for facilitating trading and
marketability.
 Extend liquidity to such stock as they are easily marketable and traded.
 Promotes savings and investment in the economy by attracting funds
for investment incorporate shares securities.
 Ensures safe and fair dealing.
 Maintain active trading.
NATIONAL STOCK EXCHANGE
The National stock Exchange (NSE) is India‟s leading stock exchanges covering
various cities and towns across the country. NSE was set up by leading institution to
private a modern, fully automated screen -based trading system speed and efficiency.
Safety and market integrity. It has set up facilities that serve as a model for the
securities industry in terms of systems, practices and procedures.
NSE has played a catalytic role in reforming the Indian securities market in terms
of microstructure, market practices and trading volumes. The market today uses state –
of- art information technology to provide an efficient and transparent trading, clearing
and settlement mechanism, and has witnessed several innovation in product and
services viz. demutualization and electronic transfer of securities, securities lending
and borrowing, professionalization of trading members, find-tuned risk management
system, emergence of clearing corporations to assume counterparty risk, market of
dept. and derivative instruments and intensive use of information technology.
14
The National stock Exchange of India Ltd as genesis in the report the high
powered study group on establishment of new stock exchange, which recommended
promotion of national stock exchange, by financial institution [Fls] to provide access
to investors from all across the country on an equal footing. Based on the
recommendations, NSE was promoted by leading financial institution at the behalf of
the GOVT of India and was incorporated November 1992 as a tax paying company
unlike other stock exchange in the country.
On its recognition as a stock exchange under the securities contracts (Regulations)
Act, 1956 in April 1993 NSE commenced operations in the Wholesale Debt Market
(WDM) segmenting JUNE 1994. The capital market (Equities) segment commenced
operation in November 1994 and operations in derivatives segment commenced in
June 2000.
LOGO OF NSF
The logo of the NSE symbolizes nationwide securities trading facilities equal
and fair access to investors, trading number and issues all over the country. The initials
of the Exchange Viz. N, S and E have been attached on the logo and a distinctly
visible. The logo symbolizes connectivity to bring about the change within the
securities industry. The logo symbolizes vibrancy and unleashing of creative energy to
constantly bring about change through innovations.
Promoters
NSE has been promoted by leading financial institutions, Banks,
insurance, companies and other financial intermediaries.
 Industrial Development Bank of India Limited.
 Industrial Finance Corporation of India Limited.
 Life Insurance Corporation of India.
 State Bank of India.
 ICICI Bank Limited.
15
 IL and FS Trust Company Limited.
 SBI Capital Market Limited.
 Bank of Baroda.
 Canara Bank.
 General Insurance Corporation of India.
 National Insurance Company Limited.
 The Oriental Insurance Company Limited.
 United India Insurance Company Limited.
 Punjab National Bank.
 Oriental Bank of Commerce.
 Indian Bank
 Union Bank of India.
 Infrastructure Development company Limited.
National stock Exchange (NSE) of India became operational in the capital
market segment on 3rd November 1994 in Mumbai. The genesis of the NSE
lies in the recommendations of the Pertain Committee (1991). Apart from
NSE, it had recommended for the establishment of National Stock Market the
defects specified.
 Lack of liquidity in most of the markets in term of depth and breadth.
 Lack of ability to develop markets for debt.
 Lack of infrastructure facilities and outdated trading system.
 Lack of transparency in the operations that effect investor‟s confidence.
 Outdated settlement system that are inadequate to cater to the growing
volumes, leading to delay.
The Main Objectives of NSE As follows
 To establish a nationwide trading facility for equities, debt instruments
and hybrids.
 To ensure equal access to investors all over the country through
appropriate communication network.
 To provide a fair, efficient and transparent securities market to
investors using an electronic communication network.
 To enable shorter settlement cycle and book entry settlement system.
 To meet current international standards of securities market.
16
Advantages of NSE
Wider Accessibility
The NSE ensures wider accessibility through satellite linked facility computer
terminals and links with VAST helps the trades to contact their counterparts in other
parts of the country quickly. The quick trading system ensures batter pricing.
Screen Based Trading
Originally, the basic advantage of NSE is computer based trading. The
backoffice loads have been reduced as everything is stored in the computer. At present
BSE and many other stock exchanges have introduced the computer based trading. The
ring based trading is vanishing in the recent days.
Non-Disclosure of the Trading Member’s Identity
While placing the orders there is no need to disclose the identity of themember
on the screen. It depends upon the wish of the trading members. So without any fear of
influencing the price. Any member can place size orders.
Effective Settlement of Corporate Benefits
All monetary benefits lodged dividend interest and redemption amount. Claims
on company objections are debited/ credited directly in the clearing account of the
clearing members. This reduces the problems faced by the members in settlement of
corporate benefits.
RECENT TRENDS IN NSE
Expansion
After establishing operation in Mumbai. The NSE had expanded its operation to the
other cities; NSE has installed 2580 VASTS in 318 cities across the country. A break
up of VSATs across 318 cities is given below.
Quality: -Apart from the consolidation of the market at the national level,the
transaction cost along with the bad deliveries has declined. The affective fun cottoning
on National Securities Clearing Corporation Limited is another reason for it.
More Liquidity: - With its online system and quick trading facilities theNSE has
introduced some liquidity into the capital marker. In the last quarter of 1997, the NSE
was more liquid for the 835 scraps that accounted for 97% of total trading volume. In
number of trades, an indicator of the presence of the retail investor, the NSE was ahead
of the BSE.
17
Less Brokerage:
Transparency in NSE allows the breaking up of the costs into brokerage fees,
market impact costs and clearing and settlement. The brokerage fee at the BSE
terminals outside Mumbai is 0.5% of the value transacted. On the NSE, it‟s around
0.1% of the value transacted.
Quick Clearing and Settlement
NSE has introduced a full range of clearing house facilities; a pan of securities
is processed at the regional clearing centers (Delhi, Chennai and Calcutta). The inter
region clearing facility provided at present, reduced that risk of the members because
of not getting timely delivery of shares or loss of shares in transit. The facility is also
expected to boost delivery based trading.
18
COMPANY PROFILE
The KARVY group was formed in 1983 at Hyderabad, India. Karvy ranks among
the top player in almost all the field it operates. Karvy Computers shares Ltd is India‟s
largest Register and Transfer Agent with a client base of nearly 500 blue chips corporate
managing over 2 core accounts. Karvy stock brokers Ltd, member of National stock
Exchange of India. With over 6,00,000 active accounts, it ranks among the top 5
Depository Participated in India, registered with NSDL and CDSL Karvy COM trade,
Member of NCDEX and MCX ranks among the top0 3 commodity brokers in the
country. Karvy Insurance Brokers is registered as a Broker with IRDA and ranks among
the top 5 insurance agent in the country. Registered with AMFI as a corporate Agent
Karvy is also among the top Mutual fund mobilize with over Rs. 5,000 cores under
management. Karvy Realty Services, which started in 2006, has quick established itself as
broker who adds value, in the realty sector. Karvy global offers niche off shoring services
to client in the US.
Karvy has 575 offices over 375 locations across India overseas at Dubai and New
York. Over 9,000 high qualified people staff Karvy.
Karvy – Early Days:-
Karvy the name comes from the names of the directors:
K – Mr. Krishna Prasad
A- Mr. Arun
R- Mr. Radha Krishna
V- Mr. Venkat Krishna
Y- Mr. Yogendar
19
The birth last of Karvy was on a modest scale in 1979. It began with the vision and
enterprise of a small group of practicing Chartered Accounts who founded the flagship
company. Karvy started with consulting and financial accounting and carved inroads into
the field of registry and share accounting by 1985. Since then, Karvy have utilized its
experiences and superlative enterprise to go from.
Strength to Strength. To better its services, to provide new ones, to innovative, diversity
and the process, evolved Karvy as one of India‟s premise integrated financial services enterprise.
GROWTH AND DEVELOPMENT OF KARVY
Over the last 20 years Karvy has traveled the success route, towards building a
reputation as an integrated financial services provider, offering a wide spectrum of
services. And they have made the journey by taking the route of quality service. Path
breaking innovation in service, versatility in service and finally totality in service.
Their highly qualified manpower, cutting-edge technology, comprehensive
infrastructure and total customer- focus has secured for us the position of an emerging
financial services giant enjoying the confidence and support of an enviable clientele
across diverse fields in the financial world.
With the experience of years of holistic financial behind us and years of complete
expertise in the industry to look forward to, they have now emerged as a premier
integrated financial services provider.
And today, they can look with pride at the fruits of their mastery and experience
Comprehensive financial services that are competently segregated to service and manage
a diverse range of customer requirements.
20
AT PRESENT STATUS OF KARVY
Present Karvy is a member of National stock Exchange (NSE), the Bombay stock Exchange
(BSE), and The Hyderabad stock Exchange (HSE). Market analysis and market predictions are
done by professional management team.
KARVY as covering the spectrum of financial services such as stock Broking
Services, Advisory Services, Stock broking, Depository Participants, Distribution of
financial products – mutual funds, fixed deposits, equities, Insurance Broking
Commodities Broking, Personal Finance Advisory Services, Merchant Banking and
corporate Finance, Placement Finance, Placement of equity, IPO‟s, among other.
VISION OF KARVY
To achieve and sustain market leadership, Karvy shall aim for complete customer
satisfaction, by combining its human and technological resources to provide world class
quality services. In the process Karvy shall strive to meet and exceed customer‟s
satisfaction and set industry standards.
Their values and vision of attaining total competence in their servicing has served
as the building block for creating a great financial enterprise, which stands solid on their
fortresses of financial strength – their various companies.
MISSION OF KARVY
“Our mission is to be a leading and preferred services provider to our customers,
and we aim to achieve this leadership by building an innovative, enterprising, and
technology driven organization which will highest standards of services and business
ethics.”
21
MILE STONES OF KARVY
SERVICES PROFILE OF THE KARVY GROUP COMPANIES

KARVY STOCK BOKING LIMITED
Member – National Stock Exchange (NSE), the Bombay Stock Exchange (BSE),
and the Hyderabad Stock Exchange (HSE),
Karvy Stock Broking Limited, one of the cornerstones of the Kavry edifice, flows
freely toward attaining diverse goals of the customer through varied services, creating a
plethora of opportunities for the customer by opening up investment vistas backed by
research-based advisory services. Here, growth knows no limits and success recognizes
22
no boundaries. Helping the customer create waves in his portfolio and empowering the
investor completely is the ultimate goal.
Why should Investors choose for KARVY …?
Excellence is next to nothing and here at Karvy everybody tries to offer excellence
services to its client through its offerings maintaining the Karvy culture which included: -
1. Controlled and low cost services culture: - Karvy is there to serve itsclient at the
minimum possible costs.
2. Longer volume processing capability: - Being the largest financial serviceprovider
in the country. It has the unique distinction of operating its activities on a large scale
which benefits all the parties cordially.
3. Adherence to strict time Schedule: - Karvy knows that time is money andtries it best
to finish the task within the stipulated time schedule.
4. Expertise in coordinating Multi-Location Responses: - Karvy has got awide
network and hence I can find its branches at most of the places in India. Thus it enjoys its
presence everywhere and co-ordinates among itself in solving the quarries and in
responding to any situation.
5. Expertise in managing independent entities such as Banks, Post-offices, etc:-The
work culture of Karvy and the ethics followed inside KarvyMakes its workforce with
everybody. So the Karvy person establishes good coordination with independent entities
too.
6. Pooling of Group Resources: - Karvy group consists of 8 subsidiaries. So itcan easily
pool up its resource for accomplishment of its goals, whenever needed. The group can
help each other whenever there are peaks and lows and even in the case when they have
huge targets just as we saw few years‟ bank, Tata group pooling its resources to acquire
Corus.
23
STOCK BROKING SERVICES
It is an undisputed fact that the stock market is unpredictable and yet enjoys a
high success rate as a wealth management and wealth accumulation option. The
difference between unpredictability and safety anchor in the market is provided by in –
depth knowledge of market functioning and changing trends, planning with foresight and
choosing options with care. This is what they provide in their Stock Broking services.
They offer services that are beyond just a medium for buying and selling stocks
and shares. Instead they provide services which are multidimensional and multi-focused
in their scope. There are several advantages in utilizing their stock Broking services,
which are the reasons why it is one of the best in the country.
They offer trading on a vast platform; National Stock Exchange. Bombay Stock
Exchange and Hyderabad stock Exchange. More importantly, they make trading safe to
the maximum possible extent, by accounting for several risk and planning accordingly.
They are assisted in this takes by their in-depth research, constant feedback and sound
advisory facilities. Their highly skilled research team, comprising of technical analysts as
well as fundamental specialists, secure result-oriented information on market trends,
market analysis and market predictions.
This crucial information is given as a constant feedback to their customers,
through daily reports delivered thrice daily; The Pre-Session Report, where market
scenario for the day is predicted, The Mid- Session Report, timed to arrive during lunch
break, where the market forecast for the rest of the day is given and the post-session
Report, the final report for the day, where the market and report itself is reviewed. To add
to this repository of information, they publish a monthly magazine.
“The Finapolis” which analyzed the latest stock market treads and takes a close
look at the various investment options, and products available in the market, while a
weekly report, called “Karvy Bazaar Baatein”, keeps clients more informed on the
immediate trends in the stock market. In addition, their specific industry reports give
comprehensive information on various industries. Besides this, they also offer special
24
portfolio analysis packages that provide daily technical advice on scraps for successful
portfolio management and provide customized advisory services to help you make the
right financial moves that are specifically suited to their portfolio.
Stock Broking services are widely networked across India, with the number of
trading terminals providing retail stock broking facilities. Its services have increasingly
offered customer oriented convenience, which they provide to a spectrum of investors.
High-net worth or otherwise, with equal dedication and competence.
But true to their spirit, this success is not their final destination, but just a
platform to launch further enhanced quality services to provide you the latest in
convenient, customer-friendly stock management.
Over the years Karvy have ensured that the trust of customers is their biggest
returns. Factors such as their success in the Electronic custody business has helped build
on their tradition of trust even more. Consequentially their retail client base expanded
very fast.
To empower the investor further they have made serious efforts to ensure that
their research calls are disseminated systematically to all their stock broking clients
through various delivery channels like email, chat, SMS, phone calls etc.
Their foray into commodities broking has been path breaking and they are in the
process of converting existing traders in commodities into the more organized
mainstream of trading in commodity futures, both as a trading and risk hedging
mechanism.
In the future, their focus will be emerging businesses and to meet this objective,
they have enhanced their manpower and revitalized their knowledge base with enhances
focus on Futures and Options as well as commodities business.
DEPOSITORY PARTICIPANTS
The onset of the technology revolution in financial service Industry saw the
emergence of Karvy as an electronic custodian registered with National Securities
Depository Ltd (NSDL) and central Securities Depository Ltd (CSDL) in 1998.Karvy set
standards enabling further comfort to the investor by promoting paperless trading across
25
the country and emerged as the top 3 Depository Participants in the country in terms of
customer serviced.
Offering a wide trading platform with a dual membership at both NSDL and
CDSL, they are a powerful medium for trading and settlement of dematerialized shares.
They have established live DPMs, Internet access to accounts and an easies transaction
process in order to offer more convenience to individual and corporate investors. A team
of process in order to offer more convenience to individual and corporate investors. A
team of professional and the latest technological enhancements like SPEED-e make their
response time quick and their delivery impeccable, a wide national network makes their
efficiencies accessible to all.
ADVISIORY SERVICES
Under their retail brand „Karvy –the finapolis‟, they deliver advisory services to a
cross- section of customers. The service is backed by a team of dedicated and expert
professionals with varied experience and background in handling investment portfolios.
They are continually engaged in designing the right investment portfolio for each
customer according to individual needs and budget considerations with a comprehensive
support system that focuses on trading customers‟ portfolios and providing valuable
inputs, monitoring and managing the portfolio through varied technological initiative.
This is made possible by the expertise they have gained in the business over the years.
Another venture towards being investor friendly is the circulation of a monthly magazine
called „Karvy –the Fin polis‟. Covering the latest of market news, trends, investment
schemes and research-bases opinions from experts in various financial fields.
MUTUAL FUNDS SERVICES
Karvy has attained a position of immense strength as a provider of across the
board transfer agency services to AMCs, Distributors and Investors. Nearly 40% of the
top AMCs including prestigious client like Deustsche AMC and UTI swear by the quality
and range of services that karvy offers. Besides providing the entire bank office
processing. Karvy provides the link between various Mutual Funds and the investors
including services to the distributor, the prime channel in this operation. Carrying the
26
limitless ideology forward. Karvy has explored new dimensions in every aspect of
Mutual Fund Servicing right from volume management, cost effective pricing, and
delivery in the least turnaround time, efficient back office and front office operations to
customize services. Karvy has explored new dimensions in every aspect of Mutual fund
servicing right from volume management, cost effective pricing, and delivery in the least
turnaround time, efficient back office and front office operations to customize services.
Karvy has been with the AMCs every step of the way, helping them serve their investors
better by offering them a diverse and customized range of services.
The first to market approach that is Karvy‟s Service enhancements such as Karvy
Covers, a full-fledged call center, top-line website (www.Karvymfs.com), the investors
and many more, creating a of galaxy of customer advantages.
27
KARVY CONSULTANCY LIMITED
As the flagship company of the Karvy Consultants limited has always remained
at the helm of organizational affairs, pioneering business policies, work ethic and
channels of progress.
Having emerged as a leader in the registry business, the first of the
businessesthat they ventured into, they have now transferred this business into a joint
venture with Computer share Limited of Australia, The world‟s largest registrar. With
the advent of depositories in the Indian capital marked and the relationships they have
created in the registry business, they believe they were best positioned to venture into
this activity as a Depository Participant. They were one of the early entrants
registered as Depository in the country and then with CDST (Central Depository
Services Limited). Today, they service over 6 lakhs customer accounts in this
business spread across over 250 cities/towns in India and are ranked amongst the
largest Depository Participants in the country. With a growing secondary market
presence, they have transferred this business to Karvy stock Broking Limited
(KSBL), their associate and a member of NSE, BSE and HSE.
KARVY INVESTOR SERVICE LIMITED
Merchant Banking
Recognized as a leading merchant banker in the country, they are registered
with SEBI as a category I merchant banker. This reputation was built by capitalizing
on opportunities, which have earned us the reputation of a merchant banker. Raising
theories for corporate or Government Undertaking successfully over the past two
decades have given us the confidence to renew their focus in this sector.
Their quality professional team and their work-oriented dedication
havepropelled us to offer value-added corporate financial services and act as a
professional navigator for long term growth of their clients, who include leading
corporate, State Governments, foreign institutional investors, public and sector
companies and banks, in Indian and global markets.
They have also emerged as a trailblazer in the arena of relationships, both at
the customer and trade levels because of their unshakable integrity, seamless service
and innovative solutions that are tuned to meet varied needs. Their team of committed
28
industry specialists, having extensive experience in capital markets, further nurtures
this relationship.
Their financial advice and assistance in restructuring, divestitures, acquisitions, de-
mergers, spin-offs, joint ventures, privatization and takeover defense mechanisms
have elevated their relationship their relationship with the client to one based on
unshakable trust and confidence.
KARVY GIOBAL SERVIVES LIMITED
The specialist Business Process of the Karvy Group. The legacy of experience
in financial services of the Karvy Group Serves us well as they enter the global arena
with the confidence of being able to deliver well.
Here they offer several delivery models on the understanding that business
needs are unique and therefore only a customized service could possibly fit the bill.
Their service matrix has permutations and combinations that create several options to
choose from.
Be it in re-engineering and managing processes or delivering new efficiencies,
their service meets up to the most stringent of international standards. Their
outsourcing models are designed for the global customer and are backed by sound
corporate and operations philosophies, and domain expertise. Providing productivity
improvements operational cost control, cost savings, improved accountability and a
whole gamut of other advantages.
They operate in the core market segments that have emerging requirements for
specialized services. Their wide vertical market coverage includes Banking, Financial
and Insurance Services (BFIS), Retail and Merchandising, Leisure and Entertainment,
Energy and Utility and Healthcare.
KARVY INSURANCE BROKING PRIVATE LIMITED
At Karvy Insurance Broking Pvt. Ltd., they provide both life and non-life
insurance products to retail individuals, high net –worth clients and corporate. With
the opening up of the insurance sector and with a large number of private players in
the business, they are in a position to provide tailor made policies for different
segments of customers. I their journey to emerge as a personal finance advisor, they
will be better positioned to leverage their relationships with the product providers and
place the requirements of their customers appropriately with the product providers.
29
With Indian markets seeing a sea change, bout in terms of investment pattern and
attitude of investors, insurance is no more seen as only a tax saving product but also
as an investment product by setting up a separate entity, they would be positioned to
provide the best of the products available in this business to their customers.
Their wide national network, spanning the length and breadth of
India, further supports these advantages. Further, personalized service is
provided here by a dedicated team committed in giving hassle- free service
to the clients.
KARVY COMMODITIES BROKING PRIVATE LIMITED
Commodities market, contrary to the belief of many people, has been in
existence in India through the ages. However, the recent attempt by the Government
to permit Multi-Commodity National levels exchanges has indeed given it, a shot in
the arm. As a result, two exchanges Multi Commodity Exchange (MCX) and National
Commodity and derivatives Exchange (NCDEX) have come into being. These
exchanges, by virtue of their high profile promoters and stakeholders, bundle in
themselves, online trading facilities, robust surveillance measures and a hassle-free
settlement system. The future contracts available on a wide spectrum of commodities
like Gold, Silver, Cotton, Steel, Soya beans, Wheat, Sugar, Channa etc., provide
excellent opportunities for hedging the risks of the farmers, importers, exporters,
trades and large scale consumers, they also make open an avenue for quality
investments in precious metals. The commodities market, as it is not affected by the
movement of the stock market or debt market provides tremendous opportunities for
better diversification of risk. Realizing this fact, event mutual funds are contemplating
of entering into this market.
Karvy COM trade Limited is another venture of the prestigious Karvy
group.With their well established presence in the multifarious facets of the modern
financial services industry from stock broking to registry services, it is indeed a
pleasure for us to make foray into the commodities derivatives market which opens
yet another door for us to deliver their service to their beloved customers and investor
public at large. With the high quality infrastructure already in place and a committed
Government providing continuous impetus, it is the responsibility of us, the
intermediaries to deliver these benefits at the door-steps of their esteemed customers.
30
With their expertise in financial services, existence across the lengths and
breadths of the country and an enviable technological edge, they are all set to bring to
you, the pleasure of investing in this burgeoning market, which can touch upon the
lives of a vast majority of the population from the farmer to the corporate alike. They
are confident that the commodity futures can be a good value addition to their
portfolio.
The company provides investment, advisory and brokerage services in Indian
commodities Markets. And most importantly, they offer a wide reach through their
branch network of over 255 branches located across 180 cities.
KARVY COMPUTERSHARE PRIVATE LIMITED
KARVY have traversed wide spaces to tie up with the world‟s largest
transferagent, the leading Australian company, Computershare Limited. The
Company that services more than 75 million shareholders across 7000 corporate
clients and makes its presence felt in over 12 countries across 5 continents has entered
into a 50-50 joint venture with us.
With its management team completely transferred to this new entity, they
willaim to enrich the financial services industry than before. The future holds new
arenas of client servicing and contemporary and relevant technologies as they are
geared to deliver better value and foster bigger investments in the business. The
worldwide network of Computershare will hold us in good as they expect to adopt
international standards in addition to leveraging the of best of technologies from
around the world.
Excellence has to be the order of the day when two companies with
suchsimilar ideologies of growth, vision and competence, get together.
ISSUE REGISTRY
Karvy towards becoming the largest transaction-processing house in the Indian
Corporate segment, they have mobilized fund for numerous corporate sector. With an
experience of handling over 700 issues, Karvy today, has the ability to execute
Voluminous transactions and hard-core expertise in technology applications have
gained us the No.1 slot in the business. Karvy is the first Registry Company to receive
ISO 9002 certification in India that stands testimony to its stature.
31
Karvy has the backing of skilled human esthetic complemented by requisite
technological packages to ensure a faster processing capability. Karvy has the benefit
of a good synergy between depositories and registry that enables faster resolution to
related customer queries. Apart from its unique investor servicing presence in all the
phases of related customer queries. Apart from its unique investor servicing presence
in all the phases of a public Issue, it is actively coordinating with both the main
depositories to develop special model to enable the customer to access depository
(NSDL, CDSL) Services during an IPO.
Their trust-worthy reputation, competent manpower and high-end technology
and infrastructure are the solid foundations on which their success is built.
KARVY STOCK BROKING LTD
Registered office
“KARVY HOUSE”
46, Avenue 4, Street No.1,
Banjara Hills,
Hyderabad-500 034
Andhra Pradesh,
India.
Telephone:- +91-40 -23312454
Fax :- +91-40-23311968
E-Mail :- Mailmanager@karvy.com
32
CHAPTER - III
RESEARCH METHODOLOGY
3.1 NEED FOR THE STUDY
The study basically made to educate the investors about Mutual Funds.
that mutual funds offer. Thus through the study one would understand how a common
man could fruitfully convert a pittance into great penny by wisely investing into the
right scheme according to his risk- taking abilities.
33
3.2SCOPE OF THE STUDY
The study here has been limited to analyze open-ended debt schemes of
mutual funds. Each scheme is analyzed according to its performances against the
other, based on factors like Sharpe‟s ratio, treynor‟s ratio, Jensen‟s Ratio, Beta co-
efficient, returns. Pie charts are used to reflect the portfolio risk and return.
34
3.3 OBJECTIVES OF THE STUDY
The following are the important Objectives formulated by me from the project study.
 To know risk & return involved in different types of mutual funds schemes.
 To evaluate the benefits of investing in mutual funds.
 To know the risk factor affecting the Nav‟s growth.
 To know the volatility of the funds with the help of Beta & Standard
Deviation.
 To find out the risk adjusted performance of the funds with the help of three
Indexes.
35
3.4 RESEARCH METHODOLOGY
SOURCE OF THE DATA
 Two sources of collection data have been employed i.e., Primary data and
Secondary data.
PRIMARY DATA:
Primary data is a direct data this information is collected directly with face to
face information in company.
SECONDARY DATA:
The secondary data collected from the different sites, broachers, newspapers,
company offer documents.
36
3.5 LIMITATIONS OF THE STUDY
The time period for the project was limited to only one and half month and
information provided is limited to the extent of internet and journals.
 A good number of explanatory variables must be taken in to consideration in
order to assess the share price movement. But due to time constraints detailed
analysis of each company were not made.
 The information regarding the company‟s, which were considered for the
analysis, not uniform in nature? That is, number of observations differs from
one/two companies to other companies.
 Generalization of findings and conclusions of the study are likely to be
disputed as security prices are determined by so many factors. However, the
findings and conclusions drawn upon the primary and secondary data collected
are expected to throw some light on volatility of share prices.
 This being an academic study suffers from time and cost constrain
37
CHAPTER - IV
DATA ANALYSIS & INTERPRETATION
CALCULATION OF RETURN AND RISK OF SELECTED MUTUAL FUND
SCHEMES AND THEIR BENCH MARKS
RISK AND RETURN OF BENCH MARKS
BSE SENSEX:
Calculation of Return and Standard Deviation
Date SENSEX Return in R-R1 (R-R1)2

%
30-03-17 3048.72
30-04-17 2959.79 -2.92 -6.83 46.65
31-05-17 3180.75 7.47 3.56 12.67
30-06-17 3607.13 13.41 9.50 90.25
31-07-17 3792.61 5.14 1.23 1.51
29-08-17 4244.73 11.92 8.01 64.16
30-09-17 4453.24 4.91 1.00 1.00
30-10-17 4906.87 10.19 6.28 39.44
30-11-17 5044.82 2.81 -1.10 1.21
30-12-17 5838.96 15.74 11.83 139.95
30-01-18 5695.67 -2.45 -6.36 40.45
30-02-18 5667.51 -0.49 -4.40 19.36
30-03-18 5590.6 -1.36 -5.27 27.77
30-04-18 5655.09 1.15 -2.76 7.62
30-05-18 4759.62 -15.83 -19.74 389.67
30-06-18 4795.46 0.75 -3.16 9.99
30-07-18 5170.32 7.82 3.91 15.29
30-08-18 5192.08 0.42 -3.49 12.18
30-09-18 5583.61 7.54 3.63 13.18
30-10-18 5672.27 1.59 -2.32 5.38
30-11-18 6234.29 9.91 6.00 36.00
30-12-18 6602.69 5.91 2.00 4.00
30-01-19 6555.94 -0.71 -4.62 21.34
30-02-19 6713.86 2.41 -1.50 2.25
30-03-19 6492.82 -3.29 -7.20 51.84
30-04-19 6154.44 -5.21 -9.12 83.17
30-05-19 6715.11 9.11 5.20 27.04
30-06-19 7193.85 7.13 3.22 10.37
30-07-19 7635.42 6.14 2.23 4.97
30-08-19 7805.43 2.23 -1.68 2.82
30-09-19 8634.48 10.62 6.71 45.02
38
30-10-19 7892.32 -8.6 -12.51 156.50
30-11-19 8788.81 11.36 7.45 55.50
30-12-19 9397.93 6.93 3.02 9.12
30-01-20 9919.89 5.55 1.64 2.69
28-02-20 10370.2 4.54 0.63 0.40
31-03-20 11280 8.77 4.86 23.62
Total 140.6 1474.39
Bench Mark Return and Risk (BSE Sensex)
Return = (P /P *100)-100
1 0
Where, P = Current month price,

1
P = Previous month price

0
R1 = ΣR/n,
Where n=number of months.
R1 = 140.60/36
=3.9
SD = √ Σ(R- R1)2 /n
=√1474.39/36
SD = 6.4
39
BSE 100:
Date BSE100 Return in % R-R1 (R-R1)2

30-03-17 1716.28
30-04-17 1671.63 -2.60 -6.32 39.96
31-05-17 1641.44 -1.81 -5.53 30.54
30-06-17 1819.36 10.84 7.12 50.68
31-07-17 1893.45 4.07 0.35 0.12
29-08-17 2229.25 17.73 14.01 196.42
30-09-17 2314.62 3.83 0.11 0.01
30-10-17 2485.43 7.38 3.66 13.39
30-11-17 2594.94 4.41 0.69 0.47
30-12-17 3074.87 18.49 14.77 218.30
30-01-18 2946.14 -4.19 -7.91 62.51
30-02-18 2923.99 -0.75 -4.47 20.00
30-03-18 2966.31 1.45 -2.27 5.16
30-04-18 3025.14 1.98 -1.74 3.02
30-05-18 2525.35 -16.52 -20.24 409.71
30-06-18 2561.16 1.42 -2.30 5.30
30-07-18 2755.22 7.58 3.86 14.88
30-08-18 2789.07 1.23 -2.49 6.21
30-09-18 2997.97 7.49 3.77 14.21
30-10-18 3027.96 1.00 -2.72 7.40
30-11-18 3231.25 6.71 2.99 8.96
30-12-18 3456.54 6.97 3.25 10.58
30-01-19 3521.71 1.89 -1.83 3.37
30-02-19 3611.9 2.56 -1.16 1.34
30-03-19 3481.88 -3.60 -7.32 53.58
30-04-19 3313.45 -4.84 -8.56 73.23
30-05-19 3601.73 8.70 4.98 24.80
30-06-19 3800.24 5.51 1.79 3.21
30-07-19 4072.15 7.16 3.44 11.80
30-08-19 4184.83 2.77 -0.95 0.91
30-09-19 4566.63 9.12 5.40 29.20
30-10-19 4159.59 -8.91 -12.63 159.60
30-11-19 4849.87 16.59 12.87 165.76
30-12-19 4953.28 2.13 -1.59 2.52
30-01-20 5254.97 6.09 2.37 5.62
28-02-20 5422.67 3.19 -0.53 0.28
31-03-20 5904.17 8.88 5.16 26.62
Total 133.96 1679.66
40
Bench Mark Return and Risk (BSE 100)
Return = (P1 /P0 *100)-100

Where, P1 = Current month price,
P0 = Previous month price
R1 = ΣR/n,
R1 = 133.96/36
= 3.72
SD = √ Σ(R- R1)2 /n
= √1679.66/36
SD = 6.83
41
BSE 500:
Date BSE500 Return in R-R1 (R-R1)2

%
30-03-17 1164.68
30-04-17 1182.01 1.49 -2.60 6.77
31-05-17 1235.78 4.55 0.46 0.21
30-06-17 1373.56 11.15 7.06 49.83
31-07-17 1439.3 4.79 0.70 0.48
29-08-17 1687.35 17.23 13.14 172.77
30-09-17 1748.43 3.62 -0.47 0.22
30-10-17 1877.14 7.36 3.27 10.70
30-11-17 1991.74 6.11 2.02 4.06
30-12-17 2366.36 18.81 14.72 216.64
30-01-18 2246.83 -5.05 -9.14 83.56
30-02-18 2228.41 -0.82 -4.91 24.11
30-03-18 2243.6 0.68 -3.41 11.62
30-04-18 2321.25 3.46 -0.63 0.40
30-05-18 1891.75 -18.50 -22.59 510.44
30-06-18 1923.78 1.69 -2.40 5.74
30-07-18 2081.26 8.19 4.10 16.78
30-08-18 2125.65 2.13 -1.96 3.83
30-09-18 2276.87 7.11 3.02 9.14
30-10-18 2319.3 1.86 -2.23 4.96
30-11-18 2518.67 8.60 4.51 20.31
30-12-18 2634.51 4.60 0.51 0.26
30-01-19 2726.49 3.49 -0.60 0.36
30-02-19 2825.65 3.64 -0.45 0.21
30-03-19 2434.66 -13.84 -17.93 321.38
30-04-19 2610.5 7.22 3.13 9.81
30-05-19 2829.2 8.38 4.29 18.38
30-06-19 2928.31 3.50 -0.59 0.34
30-07-19 3124.78 6.71 2.62 6.86
30-08-19 3273 4.74 0.65 0.43
30-09-19 3521.83 7.60 3.51 12.34
30-10-19 3198.69 -9.18 -13.27 175.97
30-11-19 3568.37 11.56 7.47 55.76
30-12-19 3795.96 6.38 2.29 5.23
30-01-20 4004.96 5.51 1.42 2.00
28-02-20 4130.07 3.12 -0.97 0.93
31-03-20 4516.73 9.36 5.27 27.79
Total 147.26 1790.64
42
Bench Mark Return and Risk (BSE 500)
Return = (P /P *100)-100
1 0

1
0
X1 = ΣR/n,
Where, n=number of months.
R1 = 147.26/36 = 4.09
2
SD = √ Σ(R- R1) /n
= √1790.64/36
SD = 7.05
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.
th
Monthly risk and return from 16 Apr 2017 to 19th Mar 2020 is calculated below.
Return=P /P *100
1 0

1
0
R1 = ΣR/n, = 190.14/36, = 5.28

2
SD = √ Σ(R- R1) /n,
= √1704.71/36
SD = 6.88
43
Calculation of Beta
B = [Σ (Ra –Ra1) (Rm-Rm1)]/ Σ (Rm-Rm1)2
Where Ra = Return on Company,

Ra1= Average return on company
Rm= Return on market,
Rm1= Average return on market
=1424.07/1474.39
B = 0.96
Calculation of Alpha
Alpha = (Ra1 - Rm1)*B

=(5.16-3.9)*0.96
=1.2
44
CALCULATION OF RISK AND RETURN
2
Date Net Asset Return in R - R1 (R- R1)
Value %(R)
30-03-17 27.66 ------ ----- ----
30-04-17 27.86 4.85 -0.43 0.18
31-05-17 31.45 13.7 8.42 70.89
30-06-17 34.70 10.03 4.75 22.56
31-07-17 37.58 8.29 3.01 9.06
29-08-17 43.31 16.39 11.11 123.43
30-09-17 48.11 9.99 4.71 22.18
30-10-17 53.04 10.24 4.96 24.6
30-11-17 57.89 9.14 3.86 14.89
30-12-18 68.51 18.34 13.06 170.56
30-01-18 63.69 -7.03 -12.31 151.53
30-02-18 65.39 2.66 -2.62 6.86
30-03-18 63.11 -3.48 -8.76 76.73
30-04-18 65.34 3.53 -1.8 3.24
30-05-18 54.44 -16.68 -21.96 482.24
30-06-18 56.26 3.34 -1.94 3.76
30-07-18 60.9 8.24 2.96 8.76
30-08-18 63.94 4.99 -1.04 1.08
30-09-18 68.7 7.44 2.16 4.66
30-10-18 69.11 1.45 -3.83 14.66
30-11-18 74.76 7.25 1.97 3.88
30-12-18 82.08 9.79 4.51 20.34
30-01-19 83.14 1.6 -3.68 13.54
30-02-19 90.19 8.14 2.86 8.17
30-03-19 86.7 -3.86 -9.14 83.53
30-04-19 86.10 -0.69 5.97 35.64
30-05-19 91.64 6.43 1.15 1.32
30-06-19 91.49 -0.16 -5.44 29.59
30-07-19 99.74 9.01 3.73 13.91
30-08-19 104.82 5.09 -0.19 0.03
30-09-19 114.32 9.06 3.78 14.28
30-10-19 105.35 -7.84 13.12 172.13
30-11-19 118.05 12.05 6.77 45.83
30-12-19 125.97 6.7 1.42 2.01
30-01-20 134.38 6.67 1.39 1.93
28-02-20 139.26 3.63 -1.92 3.68
31-03-20 155.75 11.84 6.65 43.03
Total 190.14 1704.71
45
DATE Return of Return Ra- Rm- [(Ra-Ra1) (Rm-
Company of Ra1 Rm1 (Rm- Rm1)2
market Rm1)]
30-03-17
30-04-17 0.72 -2.92 -4.44 -6.83 30.33 46.65
31-05-17 12.89 7.47 7.73 3.56 27.52 12.67
30-06-17 10.33 13.41 5.17 9.5 49.12 90.25
31-07-17 8.3 5.14 3.14 1.23 3.86 1.51
29-08-17 15.25 11.92 10.09 8.01 80.82 64.16
30-09-17 11.08 4.91 5.92 1 5.92 1.00
30-10-17 10.25 10.19 5.09 6.28 31.97 39.44
30-11-17 9.14 2.81 3.98 -1.1 -4.38 1.21
30-12-17 18.35 15.74 13.19 11.83 156.04 139.95
30-01-18 -7.04 -2.45 -12.2 -6.36 77.59 40.45
30-02-18 2.67 -0.49 -2.49 -4.4 10.96 19.36
30-03-18 -3.49 -1.36 -8.65 -5.27 45.59 27.77
30-04-18 3.53 1.15 -1.63 -2.76 4.50 7.62
30-05-18 -16.68 -15.83 -21.84 -19.74 431.12 389.67
30-06-18 3.34 0.75 -1.82 -3.16 5.75 9.99
30-07-18 8.25 7.82 3.09 3.91 12.08 15.29
30-08-18 4.99 0.42 -0.17 -3.49 0.59 12.18
30-09-18 7.44 7.54 2.28 3.63 8.28 13.18
30-10-18 0.6 1.59 -4.56 -2.32 10.58 5.38
30-11-18 8.18 9.91 3.02 6 18.12 36.00
30-12-18 9.79 5.91 4.63 2 9.26 4.00
30-01-19 1.29 -0.71 -3.87 -4.62 17.88 21.34
30-02-19 8.48 2.41 3.32 -1.5 -4.98 2.25
30-03-19 -3.87 -3.29 -9.03 -7.2 65.02 51.84
30-04-19 -0.69 -5.21 -5.85 -9.12 53.35 83.17
30-05-19 6.43 9.11 1.27 5.2 6.60 27.04
30-06-19 -0.16 7.13 -5.32 3.22 -17.13 10.37
30-07-19 9.02 6.14 3.86 2.23 8.61 4.97
30-08-19 5.09 2.23 -0.07 -1.68 0.12 2.82
30-09-19 9.06 10.62 3.9 6.71 26.17 45.02
30-10-19 -7.85 -8.6 -13.01 -12.51 162.76 156.50
30-11-19 12.06 11.36 6.9 7.45 51.41 55.50
30-12-19 6.71 6.93 1.55 3.02 4.68 9.12
30-01-20 6.68 5.55 1.52 1.64 2.49 2.69
28-02-20 3.63 4.54 -1.53 0.63 -0.96 0.40
31-03-20 11.84 8.77 6.68 4.86 32.46 23.62
Total 185.61 140.61 1424.07 1474.39
46
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 30th Apr 2017 to 31st Mar 2020 is calculated below.
Return = (P1 /P0 *100) – 100
R1 = ΣR/n,
R1 = 201.9/36
= 5.6
SD = √ Σ(R- R1)2 /n
= √1669.164/36
SD = 6.8
Calculation of Beta
B = [Σ(Ra –Ra1)(Rm-Rm1)]/ Σ(Rm-Rm1)2
= 375.48/1679.2
B = 0.22
Alpha = (Ra1-Rm1)*B
= (5.64-3.72)*0.22
=0.42
47
Calculation of Risk and Return
Date NAV Return in % R-R1 (R-R1)2

30-03-17 29.33
30-04-17 30.55 4.15 -1.45 2.1
31-05-17 37.23 21.86 16.26 264.38
30-06-17 41.14 10.5 4.9 24.01
31-07-17 45.70 11.08 5.48 30.03
29-08-17 49.05 7.33 1.73 2.99
30-09-17 52.04 6.09 0.49 0.24
30-10-17 56.93 9.39 3.79 14.36
30-11-17 64.97 14.12 8.52 72.59
30-12-17 80.59 24.04 18.44 340.03
30-01-18 73.49 -8.81 -14.41 207.64
30-02-18 72.14 -1.83 -7.43 55.2
30-03-18 72.43 0.04 -5.56 30.91
30-04-18 71.86 -0.78 -6.38 40.7
30-05-18 78.32 8.98 3.38 11.42
30-06-18 79.04 0.09 -5.51 30.36
30-07-18 75.49 -4.49 -10.09 101.8
30-08-18 81.64 8.14 2.54 6.45
30-09-18 84.73 3.78 -1.82 3.31
30-10-18 88.06 3.93 -1.67 2.78
30-11-18 97.23 10.41 4.81 23.13
30-12-18 109.93 13.06 7.46 55.65
30-01-19 108.91 -0.92 -6.52 42.51
30-02-19 117.09 7.51 1.91 3.64
30-03-19 113.63 -2.95 -8.55 73.1
30-04-19 118.08 3.91 -1.69 2.85
30-05-19 124.54 5.47 -0.13 0.01
30-06-19 122.89 -1.32 -6.92 47.88
30-07-19 126.52 2.95 -2.65 7.02
30-08-19 127.9 1.09 -4.51 20.34
30-09-19 130.06 1.68 -3.92 15.36
30-10-19 149.4 14.87 9.27 85.93
30-11-19 164.69 10.23 4.63 21.43
30-12-19 174.03 5.67 0.07 0.004
30-01-20 180.17 3.52 -2.08 4.32
28-02-20 182.34 1.2 -4.4 19.36
31-03-20 196.88 7.91 2.31 5.33
Total 201.9 1669.164
48
Calculation of Beta:

market Rm1)]
30-03-17
30-04-17 4.16 -2.6 -1 -6.32 6.32 39.94
31-05-17 21.87 -1.81 16.71 -5.53 -92.41 30.58
30-06-17 10.5 10.84 5.34 7.12 38.02 50.69
31-07-17 11.08 4.07 5.92 0.35 2.07 0.12
29-08-17 7.33 17.73 2.17 14.01 30.40 196.28
30-09-17 6.1 3.83 0.94 0.11 0.10 0.01
30-10-17 9.4 7.38 4.24 3.66 15.52 13.40
30-11-17 14.12 4.41 8.96 0.69 6.18 0.48
30-12-17 24.04 18.49 18.88 14.77 278.86 218.15
30-01-18 -8.81 -4.19 -13.97 -7.91 110.50 62.57
27-02-18 -1.84 -0.75 -7 -4.47 31.29 19.98
30-03-18 0.4 1.45 -4.76 -2.27 10.81 5.15
30-04-18 -0.79 1.98 -5.95 -1.74 10.35 3.03
30-05-18 8.99 -16.52 3.83 -20.24 -77.52 409.66
30-06-18 0.92 1.42 -4.24 -2.3 9.75 5.29
30-07-18 -4.49 7.58 -9.65 3.86 -37.25 14.90
30-08-18 8.15 1.23 2.99 -2.49 -7.45 6.20
30-09-18 3.78 7.49 -1.38 3.77 -5.20 14.21
30-10-18 3.93 1 -1.23 -2.72 3.35 7.40
30-11-18 10.41 6.71 5.25 2.99 15.70 8.94
30-12-18 13.06 6.97 7.9 3.25 25.68 10.56
30-01-19 -0.93 1.89 -6.09 -1.83 11.14 3.35
27-02-19 7.51 2.56 2.35 -1.16 -2.73 1.35
30-03-19 -2.95 -3.6 -8.11 -7.32 59.37 53.58
30-04-19 3.92 -4.84 -1.24 -8.56 10.61 73.27
30-05-19 5.47 8.7 0.31 4.98 1.54 24.80
30-06-19 -1.32 5.51 -6.48 1.79 -11.60 3.20
30-07-19 2.95 7.16 -2.21 3.44 -7.60 11.83
30-08-19 1.09 2.77 -4.07 -0.95 3.87 0.90
30-09-19 1.69 9.12 -3.47 5.4 -18.74 29.16
30-10-19 14.87 -8.91 9.71 -12.63 -122.64 159.52
30-11-19 10.23 16.59 5.07 12.87 65.25 165.64
30-12-19 5.67 2.13 0.51 -1.59 -0.81 2.53
30-01-20 3.53 6.09 -1.63 2.37 -3.86 5.62
28-02-20 1.2 3.19 -3.96 -0.53 2.10 0.28
31-03-20 7.97 8.88 2.81 5.16 14.50 26.63
Total 203.23 133.96 375.48 1679.20
Calculation of Return and Risk
49
market Rm1)]
30-03-17
30-04-17 0.67 -2.6 -4.49 -6.32 28.38 39.94
31-05-17 10.7 -1.81 5.54 -5.53 -30.64 30.58
30-06-17 9.3 10.84 4.14 7.12 29.48 50.69
31-07-17 3.43 4.07 -1.73 0.35 -0.61 0.12
29-08-17 9.29 17.73 4.13 14.01 57.86 196.28
30-09-17 -1.17 3.83 -6.33 0.11 -0.70 0.01
30-10-17 1.98 7.38 -3.18 3.66 -11.64 13.40
30-11-17 6.98 4.41 1.82 0.69 1.26 0.48
30-12-17 16.5 18.49 11.34 14.77 167.49 218.15
30-01-18 -6.3 -4.19 -11.46 -7.91 90.65 62.57
27-02-18 -1.33 -0.75 -6.49 -4.47 29.01 19.98
30-03-18 -6.31 1.45 -11.47 -2.27 26.04 5.15
30-04-18 8.36 1.98 3.2 -1.74 -5.57 3.03
30-05-18 -9.45 -16.52 -14.61 -20.24 295.71 409.66
30-06-18 1.74 1.42 -3.42 -2.3 7.87 5.29
30-07-18 5.58 7.58 0.42 3.86 1.62 14.90
30-08-18 8.44 1.23 3.28 -2.49 -8.17 6.20
30-09-18 3.46 7.49 -1.7 3.77 -6.41 14.21
30-10-18 -2.2 1 -7.36 -2.72 20.02 7.40
30-11-18 17.95 6.71 12.79 2.99 38.24 8.94
30-12-18 10.14 6.97 4.98 3.25 16.19 10.56
30-01-19 3.71 1.89 -1.45 -1.83 2.65 3.35
27-02-19 1.04 2.56 -4.12 -1.16 4.78 1.35
30-03-19 3.08 -3.6 -2.08 -7.32 15.23 53.58
30-04-19 4.37 -4.84 -0.79 -8.56 6.76 73.27
30-05-19 10.61 8.7 5.45 4.98 27.14 24.80
30-06-19 3.02 5.51 -2.14 1.79 -3.83 3.20
30-07-19 12.71 7.16 7.55 3.44 25.97 11.83
30-08-19 15.12 2.77 9.96 -0.95 -9.46 0.90
30-09-19 6.64 9.12 1.48 5.4 7.99 29.16
30-10-19 -9.02 -8.91 -14.18 -12.63 179.09 159.52
30-11-19 10.8 16.59 5.64 12.87 72.59 165.64
30-12-19 8.41 2.13 3.25 -1.59 -5.17 2.53
30-01-20 5.02 6.09 -0.14 2.37 -0.33 5.62
28-02-20 3.87 3.19 -1.29 -0.53 0.68 0.28
31-03-20 11.37 8.88 6.21 5.16 32.04 26.63
Total 178.5 133.96 1102.22 1679.20
4. Sundaram S.M.I.L.E. Fund
Sundaram S.M.I.L.E. Fund is Mid cap open ended growth fund. Its objective is to
50
achieve capital appreciation by investing in diversified stocks that are generally
termed as 'Small and Midcaps' and by investing in other equities. Monthly risk and
return from 28th Feb 2010 to 31st Mar 2011 is calculated below.
Return = (P1 /P0 *100)-100
R1 = ΣR/n, where n=number of months.
R1 = -3.31/14
= -0.23
SD= √ Σ(R- R1)2 /n

= √873.52/14
SD= 7.89
Calculation of Beta
= 415/637.71
B = 0.65
Alpha = (Ra1-Rm1)*B
= (-0.23-4.09)*0.65
= -2.8
51
Date NAV Return in % R-R1 (R-R1)2
30-01-18 11.01
30-02-18 10.19 -7.45 -7.23 52.24
30-03-18 10.07 -1.18 -0.96 0.92
30-04-18 10.14 0.70 0.92 0.84
30-05-18 11 8.48 8.70 75.71
30-06-18 11.23 2.09 2.31 5.34
30-07-18 12.21 8.73 8.95 80.04
30-08-18 13.19 8.03 8.25 68.00
30-09-18 13.5 2.35 2.57 6.61
30-10-18 10.21 -24.37 -24.15 583.24
30-11-18 10.13 -0.78 -0.56 0.32
30-12-18 10.12 -0.10 0.12 0.01
30-01-19 10.13 0.10 0.32 0.10
28-02-19 10.14 0.10 0.32 0.10
31-03-19 10.14 0.00 0.22 0.05
Total -3.31 873.52

market Rm1)]
27-02-19 -7.45 3.64 -7.23 -0.45 3.25 0.20
30-03-19 -1.18 -13.84 -0.96 -17.93 17.21 321.48
30-04-19 0.7 7.22 0.92 3.13 2.88 9.80
30-05-19 8.48 8.38 8.7 4.29 37.32 18.40
30-06-19 2.09 3.5 2.31 -0.59 -1.36 0.35
30-07-19 8.73 6.71 8.95 2.62 23.45 6.86
30-08-19 8.03 4.74 8.25 0.65 5.36 0.42
30-09-19 2.35 7.6 2.57 3.51 9.02 12.32
30-10-19 -24.37 -9.18 -24.15 -13.27 320.47 176.09
30-11-19 -0.78 11.56 -0.56 7.47 -4.18 55.80
30-12-19 -0.10 6.38 0.12 2.29 0.27 5.24
30-01-20 0.10 5.51 0.32 1.42 0.45 2.02
28-02-20 0.10 3.12 0.32 -0.97 -0.31 0.94
31-03-20 0.00 9.36 0.22 5.27 1.16 27.77
Total -3.33 147.26 415.00 637.71
5. SBI MSFU CONTRA
SBI MSFU CONTRA is open ended growth fund. Its objective is to achieve capital
appreciation by investing in diversified stocks. Monthly risk and return from
52
31st May 2019 to 31st Mar 2020 is calculated below.
Return=P1 /P0 *100

X1 = 70.64/11
= 6.42
SD = √ Σ(R- R1)2 /n
= √337/11
SD = 5.53
Calculation of Beta
= -67.35/677.99
B = -0.09
Alpha = (Ra1-Rm1)*B
= (6.42-5.57)*-0.09
= 0.76
53
Date Net Asset Return in R -R1 (R - R1)2

Value %
30-04-19 16.52
30-05-19 17.16 3.87 -2.55 6.48
30-06-19 17.66 2.91 -3.51 12.29
30-07-19 19.87 12.51 6.09 37.14
30-08-19 21.91 10.27 3.85 14.80
30-09-19 23.04 5.16 -1.26 1.59
30-10-19 21.53 -6.55 -12.97 168.32
30-11-19 24.1 11.94 5.52 30.44
30-12-19 24.92 3.40 -3.02 9.11
30-01-20 27.08 8.67 2.25 5.05
28-02-20 28.43 4.99 -1.43 2.06
31-03-20 32.26 13.47 7.05 49.73
Total 70.64 337.00
Calculation of Beta
Date Return Return Ra- Rm- [(Ra-Ra1) (Rm-

of of Ra1 Rm1 (Rm- Rm1)2
company market Rm1)]
30-05-19 3.87 -2.55 8.7 -8.12 -70.64 65.93
30-06-19 2.91 -3.51 5.51 -9.08 -50.03 82.45
30-07-19 12.51 6.09 7.16 0.52 3.72 0.27
30-08-19 10.27 3.85 2.77 -1.72 -4.76 2.96
30-09-19 5.16 -1.26 9.12 -6.83 -62.29 46.65
30-10-19 -6.55 -12.97 -8.91 -18.54 165.19 343.73
30-11-19 11.94 5.52 16.59 -0.05 -0.83 0.00
30-12-19 3.4 -3.02 2.13 -8.59 -18.30 73.79
30-01-20 8.67 2.25 6.09 -3.32 -20.22 11.02
28-02-20 4.99 -1.43 3.19 -7.00 -22.33 49.00
31-03-20 13.47 7.05 8.88 1.48 13.14 2.19
Total 70.64 61.23 -67.35 677.99
54
Table1.1:
AVERAGE RISK OF SELECTED MUTUAL FUND SCHEMES
Mutual Fund Schemes Risk Beta Alpha

RELIANCE VISION FUND 6.9 0.96 1.2
FRANKLIN INDIA PRIMA 6.8 0.22 0.42
FUND
PRU ICICI FMCG SECTOR 6.6 0.65 0.8
FUND
SUNDARAM SMILE FUND 7.89 0.65 -2.8
SBI CONTRA FUND 5.53 -0.09 0.76
Total 33.72
Bench Mark 6.4
Average risk = 33.72/5

= 6.74
Chart 1.1:
RISK, BETA & ALPHA IN %
8 RISK FACTOR OF MUTUAL FUNDS
4
Risk
2
Beta
0 Alpha
-2
-4
MUTUAL FUNDS & BENCH MARK
55
ANALYSIS:
 Sundaram SMILE fund has the highest risk factor of 7.89% with 0.65% beta
and -2.8% of alpha.
 SBI Contra Fund has the lowest risk factor of 5.53% with -0.09% of beta and
0.76% of alpha.
 Bench Mark has the risk factor of 6.4%
 On an average Mutual Fund Schemes have the risk factor of 6.74
INTERPETATION:
Risk is a major factor influence all type of investors. In the above selected Mutual
Fund Schemes average risk factor is 6.74% even though the risk factor of bench mark
is 6.4%, it is very close to average risk. It is showing Mutual Funds are also risky.
56
Table1.2
AVERAGE RETURNS OF SELECTED MUTUAL FUND SCHEMES
Mutual Fund Schemes Return

RELIANCE VISION FUND 5.16
FRANKLIN INDIA PRIMA 5.64
FUND
PRU ICICI FMCG SECTOR 4.96
FUND
SUNDARAM SMILE FUND -0.23
SBI CONTRA FUND 6.42
Total 21.95
Bench Mark 3.9
Average Return = 21.95/5

= 4.39
Chart 1.2
Return of selected Mutual Funds

MUTUAL FUNDS & BENCH MARKS
Bench Mark
SBI CONTRA FUND
SUNDARAM SMILE FUND
PRU ICICI FMCG SECTOR FUND Return
FRANKLIN INDIA PRIMA FUND
RELIANCE VISION FUND
-2 0 2 4 6 8
Return in %
57
ANALYSIS:
 SBI Contra Fund has got the highest return of 6.42%.

 Sundaram SMILE fund got the negative return of -0.23%.
 Bench Mark return is 3.9%.
 On an average Mutual Fund Schemes have got 4.39% per month.
INTERPETATION:
Return is a major factor influencing factor to all type of investors. In the above
selected Mutual Fund Schemes average return is 4.39%, compared to bench mark
return mutual fund returns are good and it will attract more and more customers.
58
CALCULATION OF RETURN AND RISK OF SELECTED COMPANIES
Calculation of Return and Risk of Bench Mark (BSE SENSEX)
Date SENSEX Return in R-R1 (R-R1)2
%
30-03-17 3048.72
30-04-17 2959.79 -2.92 -6.83 46.65
31-05-17 3180.75 7.47 3.56 12.67
30-06-17 3607.13 13.41 9.50 90.25
31-07-17 3792.61 5.14 1.23 1.51
29-08-17 4244.73 11.92 8.01 64.16
30-09-17 4453.24 4.91 1.00 1.00
30-10-17 4906.87 10.19 6.28 39.44
30-11-17 5044.82 2.81 -1.10 1.21
30-12-17 5838.96 15.74 11.83 139.95
30-01-18 5695.67 -2.45 -6.36 40.45
30-02-18 5667.51 -0.49 -4.40 19.36
30-03-18 5590.6 -1.36 -5.27 27.77
30-04-18 5655.09 1.15 -2.76 7.62
30-05-18 4759.62 -15.83 -19.74 389.67
30-06-18 4795.46 0.75 -3.16 9.99
30-07-18 5170.32 7.82 3.91 15.29
30-08-18 5192.08 0.42 -3.49 12.18
30-09-18 5583.61 7.54 3.63 13.18
30-10-18 5672.27 1.59 -2.32 5.38
30-11-18 6234.29 9.91 6.00 36.00
30-12-18 6602.69 5.91 2.00 4.00
30-01-19 6555.94 -0.71 -4.62 21.34
30-02-19 6713.86 2.41 -1.50 2.25
30-03-19 6492.82 -3.29 -7.20 51.84
30-04-19 6154.44 -5.21 -9.12 83.17
30-05-19 6715.11 9.11 5.20 27.04
30-06-19 7193.85 7.13 3.22 10.37
30-07-19 7635.42 6.14 2.23 4.97
30-08-19 7805.43 2.23 -1.68 2.82
30-09-19 8634.48 10.62 6.71 45.02
30-10-19 7892.32 -8.6 -12.51 156.50
30-11-19 8788.81 11.36 7.45 55.50
30-12-19 9397.93 6.93 3.02 9.12
30-01-20 9919.89 5.55 1.64 2.69
28-02-20 10370.2 4.54 0.63 0.40
31-03-20 11280 8.77 4.86 23.62
Total 140.6 1474.39
Return = (P1 /P0 *100)-100
59
R1 = 140.60/36
=3.9
SD = √ Σ(R- R1)2 /n
= √1474.39/36
SD = 6.4
1.ACC Limited:-
Date Scrip Value Return in R-R1 (R-R1)2

%
30-03-17 137
30-04-17 128. -6.50 -10.22 104.37
31-05-17 136.9 6.87 3.15 9.92
30-06-17 169.1 23.52 19.80 392.07
31-07-17 174.8 3.37 -0.35 0.12
29-08-17 219 25.29 21.57 465.09
30-09-17 186.5 -14.84 -18.56 344.48
30-10-17 207.1 11.05 7.33 53.66
30-11-17 222.2 7.29 3.57 12.75
30-12-17 252.4 13.59 9.87 97.44
30-01-18 271 7.37 3.65 13.32
30-02-18 261 -3.69 -7.41 54.91
30-03-18 255.25 -2.20 -5.92 35.08
30-04-18 276 8.13 4.41 19.44
30-05-18 247 -10.51 -14.23 202.41
30-06-18 232.9 -5.71 -9.43 88.90
30-07-18 236 1.33 -2.39 5.71
30-08-18 263 11.44 7.72 59.61
30-09-18 267.3 1.63 -2.09 4.35
30-10-18 263.5 -1.42 -5.14 26.44
30-11-18 287.65 9.17 5.45 29.65
30-12-18 320.1 11.28 7.56 57.17
30-01-19 352 9.97 6.25 39.01
30-02-19 362.6 3.01 -0.71 0.50
30-03-19 369.8 1.99 -1.73 3.01
30-04-19 376 1.68 -2.04 4.18
30-05-19 381.15 1.37 -2.35 5.52
30-06-19 384.5 0.88 -2.84 8.07
30-07-19 450 17.04 13.32 177.29
30-08-19 472.45 4.99 1.27 1.61
30-09-19 467.6 -1.03 -4.75 22.53
30-10-19 438 -6.33 -10.05 101.01
30-11-19 516.5 17.92 14.20 201.71
60
30-12-19 537.5 4.07 0.35 0.12
30-01-20 566 5.30 1.58 2.50
28-02-20 597.9 5.64 1.92 3.67
31-03-20 764 27.78 24.06 578.91
Total 190.72 3226.54

market Rm1)]
30-04-17 -6.5 -2.92 -10.22 -6.83 69.80 46.65
31-05-17 6.87 7.47 3.15 3.56 11.21 12.67
30-06-17 23.52 13.41 19.8 9.5 188.10 90.25
31-07-17 3.37 5.14 -0.35 1.23 -0.43 1.51
29-08-17 25.29 11.92 21.57 8.01 172.78 64.16
30-09-17 -14.84 4.91 -18.56 1 -18.56 1.00
30-10-17 11.05 10.19 7.33 6.28 46.03 39.44
30-11-17 7.29 2.81 3.57 -1.1 -3.93 1.21
30-12-17 13.59 15.74 9.87 11.83 116.76 139.95
30-01-18 7.37 -2.45 3.65 -6.36 -23.21 40.45
27-02-18 -3.69 -0.49 -7.41 -4.4 32.60 19.36
30-03-18 -2.2 -1.36 -5.92 -5.27 31.20 27.77
30-04-18 8.13 1.15 4.41 -2.76 -12.17 7.62
30-05-18 -10.51 -15.83 -14.23 -19.74 280.90 389.67
30-06-18 -5.71 0.75 -9.43 -3.16 29.80 9.99
30-07-18 1.33 7.82 -2.39 3.91 -9.34 15.29
30-08-18 11.44 0.42 7.72 -3.49 -26.94 12.18
30-09-18 1.63 7.54 -2.09 3.63 -7.59 13.18
30-10-18 -1.42 1.59 -5.14 -2.32 11.92 5.38
30-11-18 9.17 9.91 5.45 6 32.70 36.00
30-12-18 11.28 5.91 7.56 2 15.12 4.00
30-01-19 9.97 -0.71 6.25 -4.62 -28.88 21.34
27-02-19 3.01 2.41 -0.71 -1.5 1.07 2.25
30-03-19 1.99 -3.29 -1.73 -7.2 12.46 51.84
30-04-19 1.68 -5.21 -2.04 -9.12 18.60 83.17
30-05-19 1.37 9.11 -2.35 5.2 -12.22 27.04
30-06-19 0.88 7.13 -2.84 3.22 -9.14 10.37
30-07-19 17.04 6.14 13.32 2.23 29.70 4.97
30-08-19 4.99 2.23 1.27 -1.68 -2.13 2.82
30-09-19 -1.03 10.62 -4.75 6.71 -31.87 45.02
30-10-19 -6.33 -8.6 -10.05 -12.51 125.73 156.50
30-11-19 17.92 11.36 14.2 7.45 105.79 55.50
30-12-19 4.07 6.93 0.35 3.02 1.06 9.12
30-01-20 5.3 5.55 1.58 1.64 2.59 2.69
61
28-02-20 5.64 4.54 1.92 0.63 1.21 0.40
31-03-20 27.78 8.77 24.06 4.86 116.93 23.62
Total 190.72 140.6 1267.64 1474.39
Return=P1 /P0 *100


R1 = 190.72/36
=5.29
SD = √ Σ(R- R1)2 /n
= √3136.92/36
SD = 9.33
Calculation of Beta

Where, Ra = Return on Company,
= 1267.64/1474.39
B = 0.86
Alpha = (Ra1-Rm1)*B
= (5.29-3.9)*0.86
=1.19
62
Table 1.3
Return and Risk of ACC LTD
Percentag
Factors e
Risk 9.33
Return 5.29
Beta 0.86
Alpha 1.19
Chart 1.3
Risk & Return of ACC LTD
10
4 Percentage
0
Risk Return Beta Alpha
ANALYSIS:
 ACC Ltd. has a risk factor of 9.33%
 Its rate of return on a monthly average is 5.29%
 Alpha and Beta are 1.19 and 0.86 respectively
INTERPETATION:
Beta of the ACC ltd. is 0.86 which is less than one; it shows the less volatility
of scrip with respect to market. Risk of the share is 9.33% and the rate of return is
only 5.29%.
2. BAJAJ AUTO LIMITED:-

63
Date Scrip Value Return in R-R1 (R-R1)2
%
30-03-18 481.1
30-04-18 481.2 0.23 -3.49 12.19
31-05-18 485 0.58 -3.14 9.86
30-06-18 576 18.76 15.04 226.29
31-07-18 575 -0.17 -3.89 15.16
29-08-18 705 22.61 18.89 356.78
30-09-18 746.5 5.89 2.17 4.69
30-10-18 863.8 15.71 11.99 143.84
30-11-18 918 6.27 2.55 6.53
30-12-18 1160 26.36 22.64 512.64
30-01-18 1119 -3.53 -7.25 52.63
30-02-18 920 -17.78 -21.50 462.41
30-03-18 876 -4.78 -8.50 72.29
30-04-18 943 7.65 3.93 15.43
30-05-18 879 -6.79 -10.51 110.39
30-06-18 895 1.82 -1.90 3.61
30-07-18 831.9 -7.05 -10.77 116.00
30-08-18 909 9.27 5.55 30.78
30-09-18 990 8.91 5.19 26.95
30-10-18 954 -3.64 -7.36 54.12
30-11-18 1020 6.92 3.20 10.23
30-12-18 1127 10.49 6.77 45.84
30-01-19 1050 -6.83 -10.55 111.35
30-02-19 990 -5.71 -9.43 89.01
30-03-19 1021 3.13 -0.59 0.35
30-04-19 1080 5.78 2.06 4.24
30-05-19 1243 15.09 11.37 129.34
30-06-19 1310 5.39 1.67 2.79
30-07-19 1325 1.15 -2.57 6.63
30-08-19 1405 6.04 2.32 5.37
30-09-19 1640 16.73 13.01 169.16
30-10-19 1665 1.52 -2.20 4.82
30-11-19 2075.5 24.65 20.93 438.26
30-12-19 2064.9 -0.51 -4.23 17.90
30-01-20 2229.9 7.99 4.27 18.24
28-02-20 2600 16.60 12.88 165.82
31-03-20 2749 5.73 2.01 4.04
Total 194.47 3455.96
64
Calculation of Beta

market Rm1)]
30-03-17
30-04-17 0.23 -2.92 -3.49 -6.83 23.84 46.65
31-05-17 0.58 7.47 -3.14 3.56 -11.18 12.67
30-06-17 18.76 13.41 15.04 9.5 142.88 90.25
31-07-17 -0.17 5.14 -3.89 1.23 -4.78 1.51
29-08-17 22.61 11.92 18.89 8.01 151.31 64.16
30-09-17 5.89 4.91 2.17 1 2.17 1.00
30-10-17 15.71 10.19 11.99 6.28 75.30 39.44
30-11-17 6.27 2.81 2.55 -1.1 -2.81 1.21
30-12-17 26.36 15.74 22.64 11.83 267.83 139.95
30-01-18 -3.53 -2.45 -7.25 -6.36 46.11 40.45
27-02-18 -17.78 -0.49 -21.5 -4.4 94.60 19.36
30-03-18 -4.78 -1.36 -8.5 -5.27 44.80 27.77
30-04-18 7.65 1.15 3.93 -2.76 -10.85 7.62
30-05-18 -6.79 -15.83 -10.51 -19.74 207.47 389.67
30-06-18 1.82 0.75 -1.9 -3.16 6.00 9.99
30-07-18 -7.05 7.82 -10.77 3.91 -42.11 15.29
30-08-18 9.27 0.42 5.55 -3.49 -19.37 12.18
30-09-18 8.91 7.54 5.19 3.63 18.84 13.18
30-10-18 -3.64 1.59 -7.36 -2.32 17.08 5.38
30-11-18 6.92 9.91 3.2 6 19.20 36.00
30-12-18 10.49 5.91 6.77 2 13.54 4.00
30-01-19 -6.83 -0.71 -10.55 -4.62 48.74 21.34
27-02-19 -5.71 2.41 -9.43 -1.5 14.15 2.25
30-03-19 3.13 -3.29 -0.59 -7.2 4.25 51.84
30-04-19 5.78 -5.21 2.06 -9.12 -18.79 83.17
30-05-19 15.09 9.11 11.37 5.2 59.12 27.04
30-06-19 5.39 7.13 1.67 3.22 5.38 10.37
30-07-19 1.15 6.14 -2.57 2.23 -5.73 4.97
30-08-19 6.04 2.23 2.32 -1.68 -3.90 2.82
30-09-19 16.73 10.62 13.01 6.71 87.30 45.02
30-10-19 1.52 -8.6 -2.2 -12.51 27.52 156.50
30-11-19 24.65 11.36 20.93 7.45 155.93 55.50
30-12-19 -0.51 6.93 -4.23 3.02 -12.77 9.12
30-01-20 7.99 5.55 4.27 1.64 7.00 2.69
28-02-20 16.6 4.54 12.88 0.63 8.11 0.40
31-03-20 5.73 8.77 2.01 4.86 9.77 23.62
Total 194.47 140.6 1425.94 1474.39
65
Return = (P1 /P0 *100) -100

R1 = 194.47/36
=5.40
SD = √ Σ(R- R1)2 /n
= √3353.99/36
SD = 9.63
Calculation of Beta

= 1425.94/1474.39
B = 0.96
Alpha = (Ra1-Rm1)*B
= (5.4-3.9)*0.96
=1.44
66
Table 1.4
Return and Risk of BAJAJ AUTO LTD
Percentag
Factors e
Risk 9.63
Return 5.4
Beta 0.96
Alpha 1.44
Chart 1.4
Risk & Return of BAJAJ AUTO LTD
10
8
Percentage
4 Percentage
0
Risk Return Beta Alpha
Factors
ANALYSIS:
 Bajaj Ltd. has a risk factor of 9.63%

 Alpha and Beta are 1.44 and 0.96 respectively
INTERPETATION:
Beta of the Bajaj ltd. is 0.96 which is very close to one; it shows the equal
volatility of scrip with respect to market. Risk of the share is 9.63% and the rate of
return is only 5.4%.
67
3. BHEL:
2
Date Script Value Return in % R - R1 (R- R1)
(R)
30-03-17 219.9
30-04-17 228.2 3.77 0.05 0.00
31-05-17 256 12.18 8.46 71.61
30-06-17 266 3.91 0.19 0.03
31-07-17 275.05 3.40 -0.32 0.10
29-08-17 339.7 23.50 19.78 391.44
30-09-17 365 7.45 3.73 13.90
30-10-17 428 17.26 13.54 183.34
30-11-17 430 0.47 -3.25 10.58
30-12-17 495 15.12 11.40 129.88
30-01-18 579.45 17.06 13.34 177.97
30-02-18 617.95 6.64 2.92 8.55
30-03-18 566 -8.41 -12.13 147.06
30-04-18 642 13.43 9.71 94.24
30-05-18 452 -29.60 -33.32 1109.89
30-06-18 496.45 9.83 6.11 37.38
30-07-18 549.1 10.61 6.89 47.41
30-08-18 555.25 1.12 -2.60 6.76
30-09-18 580 4.46 0.74 0.54
30-10-18 630 8.62 4.90 24.02
30-11-18 600 -4.76 -8.48 71.94
30-12-18 728.9 21.48 17.76 315.54
30-01-19 729 0.01 -3.71 13.74
30-02-19 865 18.66 14.94 223.07
30-03-19 799 -7.63 -11.35 128.82
30-04-19 815 2.00 -1.72 2.95
30-05-19 880 7.98 4.26 18.11
30-06-19 842.3 -4.28 -8.00 64.07
30-07-19 986 17.06 13.34 177.97
30-08-19 1099 11.46 7.74 59.91
30-09-19 1109 0.91 -2.81 7.90
30-10-19 1099 -0.90 -4.62 21.36
30-11-19 1434.5 30.53 26.81 718.66
30-12-19 1379 -3.87 -7.59 57.59
30-01-20 1730 25.45 21.73 472.33
28-02-20 1911 10.46 6.74 45.46
31-03-20 2162 13.13 9.41 88.63
Total 258.52 4942.75
Return = (P1 /P0 *100) -100

68
R1 = 258.52/36
=7.18
SD = √ Σ(X- X1)2 /n
= √4511.48/36
SD = 11.19
Calculation of Beta
= 1413.3/1474.39
B = 0.958
Alpha = (Ra1-Rm1)*B
= (7.18-3.9)*0.958
=3.1
69
Table 1.5
Calculation of Return and Risk of BHEL:
Percentag
Factors e
Risk 11.19
Return 7.18
Beta 0.958
Alpha -3.14
Chart 1.5:
Risk & Return of BHEL
12
10
8
Percentage
6
4
Percentage
2
0
-2 Risk Return Beta Alpha
-4
Factor
ANALYSIS:
 BHEL has a risk factor of 11.19%
 Alpha and Beta are -3.14 and 0.958 respectively
INTERPETATION:
Beta of the BHEL is 0.958 which is very close to one; it shows the equal
SATYAM:-
70
Date Scrip Value Return in X -X1 (X - X1)2
%
30-03-17
30-04-17 162 -13.14 -16.86 284.15
31-05-17 161.9 -0.06 -3.78 14.30
30-06-17 190.8 17.85 14.13 199.67
31-07-17 175.05 -8.25 -11.97 143.39
29-08-17 208.65 19.19 15.47 239.46
30-09-17 241 15.50 11.78 138.87
30-10-17 298.55 23.88 20.16 406.41
30-11-17 315 5.51 1.79 3.20
30-12-17 361.8 14.86 11.14 124.04
30-01-18 380 5.03 1.31 1.72
30-02-18 314.95 -17.12 -20.84 434.24
30-03-18 320 1.60 -2.12 4.48
30-04-18 334 4.38 0.66 0.43
30-05-18 300 -10.18 -13.90 193.20
30-06-18 309 3.00 -0.72 0.52
30-07-18 327 5.83 2.11 4.43
30-08-18 342.5 4.74 1.02 1.04
30-09-18 373.4 9.02 5.30 28.11
30-10-18 371 -0.64 -4.36 19.03
30-11-18 417.6 12.56 8.84 78.16
30-12-18 408 -2.30 -6.02 36.23
30-01-19 401 -1.72 -5.44 29.55
30-02-19 401.55 0.14 -3.58 12.84
30-03-19 390 -2.88 -6.60 43.51
30-04-19 402 3.08 -0.64 0.41
30-05-19 457 13.68 9.96 99.23
30-06-19 498 8.97 5.25 27.58
30-07-19 535.9 7.61 3.89 15.14
30-08-19 508 -5.21 -8.93 79.68
30-09-19 520 2.36 -1.36 1.84
30-10-19 579.8 11.50 7.78 60.53
30-11-19 653.9 12.78 9.06 82.09
30-12-19 710 8.58 4.86 23.61
30-01-20 741 4.37 0.65 0.42
28-02-20 771 4.05 0.33 0.11
30-03-20 823.9 6.86 3.14 9.87
Total 165.44 2841.49
Calculation of Beta
DATE Return of Return Ra-Ra1 Rm- [(Ra-Ra1) (Rm-
company of Rm1 (Rm- Rm1)2
Market Rm1)]
30-03-17
71
30-04-17 -13.14 -2.92 -16.86 -6.83 115.15 46.65
31-05-17 -0.06 7.47 -3.78 3.56 -13.46 12.67
30-06-17 17.85 13.41 14.13 9.5 134.24 90.25
31-07-17 -8.25 5.14 -11.97 1.23 -14.72 1.51
29-08-17 19.19 11.92 15.47 8.01 123.91 64.16
30-09-17 15.5 4.91 11.78 1 11.78 1.00
30-10-17 23.88 10.19 20.16 6.28 126.60 39.44
30-11-17 5.51 2.81 1.79 -1.1 -1.97 1.21
30-12-17 14.86 15.74 11.14 11.83 131.79 139.95
30-01-18 5.03 -2.45 1.31 -6.36 -8.33 40.45
30-02-18 -17.12 -0.49 -20.84 -4.4 91.70 19.36
30-03-18 1.6 -1.36 -2.12 -5.27 11.17 27.77
30-04-18 4.38 1.15 0.66 -2.76 -1.82 7.62
30-05-18 -10.18 -15.83 -13.9 -19.74 274.39 389.67
30-06-18 3 0.75 -0.72 -3.16 2.28 9.99
30-07-18 5.83 7.82 2.11 3.91 8.25 15.29
30-08-18 4.74 0.42 1.02 -3.49 -3.56 12.18
30-09-18 9.02 7.54 5.3 3.63 19.24 13.18
30-10-18 -0.64 1.59 -4.36 -2.32 10.12 5.38
30-11-18 12.56 9.91 8.84 6 53.04 36.00
30-12-18 -2.3 5.91 -6.02 2 -12.04 4.00
30-01-19 -1.72 -0.71 -5.44 -4.62 25.13 21.34
30-02-19 0.14 2.41 -3.58 -1.5 5.37 2.25
30-03-19 -2.88 -3.29 -6.6 -7.2 47.52 51.84
30-04-19 3.08 -5.21 -0.64 -9.12 5.84 83.17
30-05-19 13.68 9.11 9.96 5.2 51.79 27.04
30-06-19 8.97 7.13 5.25 3.22 16.91 10.37
30-07-19 7.61 6.14 3.89 2.23 8.67 4.97
30-08-19 -5.21 2.23 -8.93 -1.68 15.00 2.82
30-09-19 2.36 10.62 -1.36 6.71 -9.13 45.02
30-10-19 11.5 -8.6 7.78 -12.51 -97.33 156.50
30-11-19 12.78 11.36 9.06 7.45 67.50 55.50
30-12-19 8.58 6.93 4.86 3.02 14.68 9.12
30-01-20 4.37 5.55 0.65 1.64 1.07 2.69
28-02-20 4.05 4.54 0.33 0.63 0.21 0.40
30-03-20 6.85 8.77 3.14 4.86 15.26 23.62
165.44 140.6 1474.39
Total 1226.24
Return = (P1 /P0 *100) – 100

R1 = 165.44/36
=4.59
72
SD = √ Σ(R- R1)2 /n
= √2813.89/36
SD = 8.84
Calculation of Beta

,Where Ra = Return on Company,
= 1226.24/1474.39
B = 0.83
Alpha = (Ra1-Rm1)*B
= (4.59-3.9)*0.958
=0.66
73
Table No 1.7
Calculation of Return and Risk of Satyam Computers Ltd.,
Factor Percentage
Risk 8.84
Return 4.59
Beta 0.83
Alpha 0.66
Chart No 1.7
Risk & Return of Satyam computers

10 8.84
8
Percentage
6 4.59
4
2
0.83
0 0.66
Risk
Return
Beta
Factor Alpha
ANALYSIS:
 Satyam Computers has a risk factor of 8.84%.
 Its rate of return on a monthly average is 4.71%.
 Alpha and Beta are 0.66 and 0.83 respectively.
INTERPETATION:
Beta of the Satyam Computers is 0.83 which is lower than one; it shows the low
74
Average risk of selected Company shares
Table No.: 1.8
Company Risk
ACC Limited 9.33
Bajaj Auto Limited 9.63
BHEL 11.19
ICICI Bank 10.37
Satyam 8.84
Total 49.36
Bench Mark 6.4
Average risk = 49.36/5

=9.87
Chart No:1.8
Companies & Bench mark
Risk Profile
Bench Mark
Satyam
ICICI Bank Risk
BHEL
Bajaj Auto Limited
ACC Limited
0 5 10 15
Risk in percentage
ANALYSIS:
 BHEL has the highest risk factor of 11.19% with 0.958% beta and -3.14% of
alpha.
 Satyam Computers has the lowest risk factor of 8.84% with 0.83% of beta and
0.66% of alpha.
 Bench Mark has the risk factor of 6.4%
 On an average Equity shares have the risk factor of 9.87%
INTERPETATION:
Risk is a major factor influence all type of investors. In the above selected Equity
Shares average risk factor is 9.87% and the risk factor of bench mark is 6.4%, it is
showing equities are more risky.
Average return of selected Company shares
75
Table no: 1.9
Company Return
ACC Limited 5.29
Bajaj Auto Limited 5.4
BHEL 7.18
ICICI Bank Ltd. 4.71
Satyam 4.59
Total 27.17
Bench Mark 3.9
Average return = 27.17/5

= 5.43
Chart no: 1.9
Return
8
Returns in percentage
2
Return
0
ACC Bajaj BHEL ICICI Satyam Bench
Limited Auto Bank Ltd. Mark
Limited
Companies & Benchmark
ANALYSIS:
 BHEL shares have got the highest return of 7.18%
 Satyam Computers shares have got the lower return of 4.59%
 Bench Mark return is 3.9%

 On an average equity shares have got 5.43% per month
INTERPRETATION:
Return is a major factor influencing factor to all type of investors. In the above
selected equity shares average return is 5.43%, compared to bench mark return of 3.9%
selected equity shares returns are good and it will attract more and more customers.
Comparison of Selected Equity Capital and Mutual Fund Schemes in respect

their Risk
76
Table no: 1.10
Investment Avenues Risk

Mutual funds 6.74
Equity capital 9.87
Chart no: 1.10
Investment avenue
Risk Profile
Mutual funds
Equity capital
0 5 10
Risk
ANALYSIS:
 Mutual funds have the risk on an average of 6.74%
 Equity shares have the risk on an average of 9.87%
INTERPETATION:
Equity capital and Mutual fund schemes are subjected to market risk. Based on
the above analysis mutual funds have an average risk of 6.74% which is compared to
equity shares risk of 9.87% is lower. Those who would like to take risk can go for
equity investments
77
Comparison of Selected Equity Capital and Mutual Fund Schemes in respect
their Return
Table No: 1.11
Investment Avenues Return

Mutual funds
4.39
Equity capital
5.43
Chart No: 1.11
Returns Profile
Investment avenues
Mutual
funds
0 2 4 6
Returns
ANALYSIS:
 Mutual funds have average return of 4.39%
 Equity shares have the return on an average of 5.43%
INTERPETATION:
Equity capital and Mutual fund schemes are subjected to market risk. Based on the
above analysis mutual funds have an average return of 4.39% which is compared to
equity shares return of 5.43% is lower. Those who would like to take risk can go for
equity investments for getting higher return.
78
CHAPTER – V
FINDINGS, SUGGESTIONS & CONCLUSION
FINDINGS
Saving money is not enough. Each of us also need to invest one‟s savings
of one‟s children, for buying a house, or for one‟s own golden years.
 Investments in both equity capital and mutual fund schemes are subjected to
market risk.
 Now a day‟s investments in equity and mutual fund schemes are increases
because of falling interest rates and awareness of equity capital and mutual
fund schemes in the minds of investors.
 BHEL has a highest risk factor of 11.19% and Satyam Computers has a lowest
risk factor of 8.84%, whereas benchmark risk is 6.4% which shows investing in
equity is more risky.
 BHEL has a highest return on a monthly average of 8.18% and Satyam
Computers has a lowest return on a monthly average of 4.59%, whereas
benchmark return is only 3.9% which shows higher the risk higher the return.
 Sandarac SMILE fund has higher risk factor of 7.89% with a negative return
of 0.23% whereas Reliance Vision Fund has higher risk factor of 6.9% with a
return of 5.16% per month.
 On the basis of above analysis mutual funds have a risk factor on an average
6.74%, and their returns are 4.39% per month
 On the basis of above analysis Equity shares have a risk factor on an average
9.87%, and their returns are 5.43% per month
 On the basis of above statements, it has proved higher the risk higher the return
and lower the risk lower the return.
 Investment in mutual fund schemes gives diversified portfolio to investors.
 Standard deviation is one of the best ways for finding risk of scrip‟s mutual
fund units.
79
 In case of both equities and mutual funds (open ended) liquidity is very high,
within 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.
 Equity capital and Mutual fund schemes are subjected to market risk. Based on
the above analysis mutual funds have an average return of 4.39% which is
compared to equity shares return of 5.43% is lower. Those who would like to
take risk can go for equity investments for getting higher return.
 Equity capital and Mutual fund schemes are subjected to market risk. Based on
the above analysis mutual funds have an average risk of 6.74% which is
compared to equity shares risk of 9.87% is lower. Those who would like to take
risk can go for equity investments.
80
SUGGESTIONS
 Now a day‟s Indian capital market is attracting more and more foreign
institutional investors (FII‟s) because of economic stability and increasing
growth rate, it leads to gradual increase in the stock market indices
 This is the right time to invest in share and mutual funds because of above
reason.
 Interest rates are falling gradually and equity markets are booming because of
this reason investor can move from bank deposits to mutual funds and equities.
Five basic norms of smart investing:
1. Investors must have a portfolio approach to wealth
2. One must analyze one's risk appetite.
3. One must possess a long-term outlook
4. Never forget to do homework and analysis.
5. It is essential to have control over one's emotions.
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
Aggressive Growth Funds
Investors who can assume the risk of potential loss in value of their investment
in the hope of achieving substantial and rapid gains. They are not suitable for
investors who must conserve their principal or who must maximize current income.
Growth Funds
Although growth funds are more conservative than aggressive growth funds,
they are still relatively volatile. They are suitable for growth-oriented investors but not
investors who are unable to assume risk or who are dependent on maximizing current
income from their investments.
Growth and Income Funds
Growth and income funds have low to moderate stability of principal and
moderate potential for current income and growth. They are suitable for investors who
81
can assume some risk to achieve growth of capital but who also want to maintain a
moderate level of curr
 Fixed-Income Funds
Fixed-income funds are suitable for investors who want to maximize current
income and who can assume a degree of capital risk in order to do so. Again, carefully
read the prospectus to learn if a fund's investment policy with respect to yield and risk
coincides with your own objectives.
 Balanced/Equity Income funds
Balanced and equity income funds are suitable for conservative investors who
want high current yield with some growth.
Money Market Funds
Money market funds are suitable for conservative investors who want high
stability of principal and moderate current income with immediate liquidity.
82
CONCLUSION
Saving money is not enough. Each of us also need to invest one‟s savings
of one‟s children, for buying a house, or for one‟s 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 9.87 & they are earning 5.43% returns per month whereas mutual funds
average risk based on sample size is only 8.74 & they are earning 4.39% per month.
83
BIBLIOGRAPHY
Sl. Name of the book Name of the Editions Publication

No. authors
1. Financial Management BEDFORD 9th Kalyani
2. Capital Market Institutions & FRANK 10th Vikas

Instrument
3. Financial Services M.Y.KHAN 7th TATA mc
Web sites:
 www.karvystockbroking.in
 www.moneypore.com
 www.forex.com
 www.nsbl.com
Magazine:
o Newspapers
o Magazines
84

A Study On Mutual Funds: Master of Business Administration

Uploaded by

Copyright:

Available Formats

A Study On Mutual Funds: Master of Business Administration

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

A Study On Mutual Funds: Master of Business Administration

Uploaded by

Copyright:

Available Formats

A STUDY ON MUTUAL FUNDS

in partial fulfillment for the award of degree of

Mr. SHAIK MOHAMED HAKEEM

Under the Guidance of

Department of Management Studies

Mr. M. RAGHAVA REDDY Dr. V. Mallikarjuna

FUNDS” done for “KARVY STOCK BROKING LIMITED”, HYDERABAD

submitted by me in partial fulfillment of the requirements for award of the degree

of Master of Business Administration of JNTUA, ANANTHAPURAMU is the

original work carried out by me under the guidance of Mr. M. RAGHAVA

REDDY, M.B.A., (Ph.D) Assistant Professor, Sri Sai college of IT &

any other university or institute.

Place: Kadapa (SHAIK MOHAMED HAKEEM)

I am very happy to present this dissertation report on “MUTUAL

guidance and valuable suggestions, continuous support and encouragement. He

SHAIK MOHAMED HAKEEM

CHAPTER- 1 INTRODUCTION TO THE TOPIC 1-11

CHAPTER-II INDUSTRY PROFILE & 12-32

CHAPTER- III RESEARCH METHODOLOGY 33-37

CHAPTER – IV DATA ANALYSIS & INTERPRETATION 38-78

CHAPTER - V FINDINGS, SUGGESTIONS& CONCLUSION 79-83

ANNEXURES – ANNUAL REPORTS -

PROJECT WORK DONE BY UNDER THE GUIDANCE OF

Market or fair value of the scheme/plan‟s investment+ Current Assets

Karvy the name comes from the names of the directors:

K – Mr. Krishna Prasad

R- Mr. Radha Krishna

V- Mr. Venkat Krishna

GROWTH AND DEVELOPMENT OF KARVY

SERVICES PROFILE OF THE KARVY GROUP COMPANIES

3.1 NEED FOR THE STUDY

Calculation of Return and Standard Deviation

Date SENSEX Return in R-R1 (R-R1)2

Bench Mark Return and Risk (BSE Sensex)

Where, P = Current month price,

P = Previous month price

Date BSE100 Return in % R-R1 (R-R1)2

Return = (P1 /P0 *100)-100

Where n=number of months.

Date BSE500 Return in R-R1 (R-R1)2

Where, P = Current month price,

Where, n=number of months.

1. Reliance Vision Fund:-

Where, P = Current month price,

R1 = ΣR/n, = 190.14/36, = 5.28

Where n=number of months.

B = [Σ (Ra –Ra1) (Rm-Rm1)]/ Σ (Rm-Rm1)2

Where Ra = Return on Company,

Alpha = (Ra1 - Rm1)*B

Date NAV Return in % R-R1 (R-R1)2

DATE Return of Return Ra- Rm- [(Ra-Ra1) (Rm-

SD= √ Σ(R- R1)2 /n

DATE Return of Return Ra- Rm- [(Ra-Ra1) (Rm-

Return=P1 /P0 *100

Date Net Asset Return in R -R1 (R - R1)2

Date Return Return Ra- Rm- [(Ra-Ra1) (Rm-

AVERAGE RISK OF SELECTED MUTUAL FUND SCHEMES

Mutual Fund Schemes Risk Beta Alpha