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UNIVERSITY OF MUMBAI

PROJECT REPORT

ON

THE COMPARATIVE STUDY OF MIDCAP SCHEMES OF

DIFFERENT MUTUAL FUND COMPANIES

IN PARTIAL FULFILLMENT FOR THE DEGREE OF

MASTER OF MANAGEMENT STUDIES

AS PER


SUBMITTED BY:

NITESH N. SAVLA

MMS- FINANCE

YEAR: 2013-2015

KOHINOOR BUSINESS SCHOOL

KURLA (WEST) MUMBAI

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PROJECT REPORT

ON

THE COMPARATIVE STUDY OF MIDCAP SCHEMES OF

DIFFERENT MUTUAL FUND COMPANIES

SUBMITTED BY:

NITESH N. SAVLA

MMS- FINANCE

YEAR: 2013-2015

UNDER THE !UIDE OF

"ROF. MILIND DALVI


KOHINOOR BUSINESS SCHOOL

KURLA (WEST) MUMBAI

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DECLARATION

I,NITESH N. SAVLA, student of KOHINOOR BUSINESS SCHOOL of M.M.S, hee!"

de#$%e th%t I h%&e #o'($eted th)s (o*e#t on "THE COMPARATIVE STUDY OF MIDCAP

SCHEMES OF DIFFERENT MUTUAL FUND COMPANIES du)n+ the %#%de')# "e%

-/01 AS INTERNSHIP PRO2E3T .The )nfo'%t)on su!')tted )s tue %nd o)+)n%$ to the

!est of 4no5$ed+e.

Signatu! # $tu%!nt

NITESH N& SAVLA

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4/46

CERTIFICATE

I, PROF. MILIND DALVI, hee!" #et)f" th%t NITESH SAVLA Student of KOHINOOR

BUSINESS SCHOOL' KURLA 6Mu'!%)7 h%s #o'($eted the (o*e#t on THE

COMPARATIVE STUDY OF MIDCAP SCHEMES OF DIFFERENT MUTUAL FUND

COMPANIES du)n+ the %#%de')# "e% -/01. The )nfo'%t)on su!')tted )s tue %nd

o)+)n%$ to !est of '" 4no5$ed+e.

DATE8

PLA3E8 Mu'!%).

Signatu! # ()!*t gui%!+

,P#& Mi-in% Da-.i/

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5/46

ACKNO0LED1EMENT

I 5ou$d $)4e to e9(ess the dee(est +%t)tude %nd %((e#)%t)on to '" 'ento %nd

f%#u$t" +u)de Pof. MILIND DALVI 5ho h%s the %tt)tude %nd su!st%n#e of %

+en)us: he #ont)nu%$$" %nd #on&)n#)n+$" #on&e"ed the s())t of 'ot)&%t)on %nd

su((ot )n e+%d to th)s (o*e#t. ;)thout h)s +u)d%n#e %nd (es)stent he$( th)s

(o*e#t on


6/46

un#ond)t)on%$ su((ot to5%ds '" (o*e#t. F)n%$$" I th%n4 the A$')+ht" fo h)s

!$ess)n+s )n e&e" %s(e#t

6


7/46

INDE2

S n& Tit-! Pag! n& E9e#ut)&e su''%" @

3o'(%n" (of)$e

/ Intodu#t)on 1

H)sto" Of Mutu%$ Fund @

1 Ad&%nt%+es of Mutu%$ fund

C D)s%d&%nt%+es of 'utu%$ fund

@ T"(es of Mutu%$ fund C

Ru$es %nd Re+u$%t)ons /

G$oss%" /

- L)te%tue Re&)e5 /1

Need Fo the stud", O!*e#t)&e, S#o(e /C Rese%#h Methodo$o+" /

/ D%t% An%$"s)s /

L)')t%t)ons

1 3on#$us)on 1

C Re#o''end%t)on C

@ B)!$)o+%(h" @

E3!*uti.! $u44a5+6

A Mutu%$ Fund )s % tust th%t (oo$s the s%&)n+s of % nu'!e of )n&estos 5ho sh%e % #o''on

f)n%n#)%$ +o%$ ).e. 'one". The 'one" thus #o$$e#ted )s then )n&ested )n #%()t%$ '%4et

)nstu'ents su#h %s sh%es, de!entues %nd othe se#u)t)es. The )n#o'e e%ned thou+h these

)n&est'ents %nd the #%()t%$ %((e#)%t)on e%$)>ed )s sh%ed !" )ts un)t ho$des )n (o(ot)on to

the nu'!e of un)ts o5ned !" the'. Thus % Mutu%$ Fund )s the 'ost su)t%!$e )n&est'ent fo

the #o''on '%n %s )t offes %n o((otun)t" to )n&est )n % d)&es)f)ed, (ofess)on%$$" '%n%+ed

%t $o5 #ost.

7


8/46

The M%)n o!*e#t)&e of ese%#h 5%s to 4no5 the !enef)ts %&%)$%!$e fo' M)d#%( s#he'es )n

Mutu%$ Fund )n&est'ent %nd undest%nd d)ffeent t"(es of 'utu%$ fund s#he'es %&%)$%!$e. To

+)&e %n )de% %!out the e+u$%t)ons of 'utu%$ funds %nd %n%$">e the (%%'etes of se$e#ted

M)d#%( s#he'es %nd to stud" the )s4 e5%d (%%'etes of se$e#ted M)d#%( s#he'es. The

3N M)d#%( )s the Ben#h'%4 se$e#ted !" %$$ the s#he'es. Afte %n%$">)n+ the s#he'es %nd

#o'(%)n+ the' 5)th the !en#h '%4, )t )s found th%t %$$ f)&e s#he'es h%&e (efo'ed

s)+n)f)#%nt$" !ette th%n the) !en#h'%4 The se$e#ted M)d#%( 5ee Tata Mi%*a(' Kta7

Mi%*a( Fun%' HDFC Mi%*a( O((tunit5 Fun%' L8T Mi%*a( Fun%' R!-iga! In.!$*

Mi%*a( Fun% &

At the end, %$$ the 1 ')d #%( s#he'es %e 'e%nt fo $on+ te' %n+)n+ fo' 1 to - "e%s.

Hen#e )t '%4es 'oe sense of t%+et)n+ the "outh %nd ')dd$e %+ed (eo($e. Th)s 5%s

#h%%#te)>ed !" the Bu$$ Ph%se !efoe the Mod) +o&en'ent #%'e )nto (o5e. Th)s '%" not

ne#ess%)$" 'e%n th%t shot te' 5ou$d offe su#h h)+h etuns.

A9ut *4(an5+6

?%&" Sto#4 Bo4)n+ L)')ted, one of the #onestones of the ?%&"

ed)f)#e, f$o5s fee$" to5%ds %tt%)n)n+ d)&ese +o%$s of the #usto'e thou+h &%)ed se&)#es.

3e%t)n+ % ($etho% of o((otun)t)es fo the #usto'e !" o(en)n+ u( )n&est'ent &)st%s !%#4ed

!" ese%#h0!%sed %d&)so" se&)#es. Hee, +o5th 4no5s no $)')ts %nd su##ess e#o+n)>es no

!ound%)es. He$()n+ the #usto'e #e%te 5%&es )n h)s (otfo$)o %nd e'(o5e)n+ the )n&esto

#o'($ete$" )s the u$t)'%te +o%$.

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9/46

P.i%! S!.i*!

Sto#4 Bo4)n+ Se&)#es

De(os)to" P%t)#)(%nts

D)st)!ut)on of F)n%n#)%$ Podu#ts

Ad&)so" Se&)#es

P)&%te 3$)ent Gou(

:& St*7 B7ing S!.i*!+6

It )s %n und)s(uted f%#t th%t the sto#4 '%4et )s un(ed)#t%!$e %nd "et en*o"s %

h)+h su##ess %te %s % 5e%$th '%n%+e'ent %nd 5e%$th %##u'u$%t)on o(t)on. The d)ffeen#e

!et5een un(ed)#t%!)$)t" %nd % s%fet" %n#ho )n the '%4et )s (o&)ded !" )n0de(th 4no5$ed+e

of '%4et fun#t)on)n+ %nd #h%n+)n+ tends, ($%nn)n+ 5)th foes)+ht %nd #hoos)n+ ones o(t)ons

5)th #%e. Th)s )s 5h%t 5e (o&)de )n ou Sto#4 Bo4)n+ se&)#es.

?ARVY offe se&)#es th%t %e !e"ond *ust % 'ed)u' fo !u")n+ %nd se$$)n+ sto#4s %nd sh%es.

Inste%d ?ARVY (o&)de se&)#es 5h)#h %e 'u$t) d)'ens)on%$ %nd 'u$t)0fo#used )n the)

s#o(e. Thee %e se&e%$ %d&%nt%+es )n ut)$)>)n+ ou Sto#4 Bo4)n+ se&)#es, 5h)#h %e the

e%sons 5h" )t )s one of the !est )n the #ount".

?ARVY offe t%d)n+ on % &%st ($%tfo' Natina- St*7 E3*;ang!%nd B49a5 St*7

E3*;ang!. Moe )'(ot%nt$", ?ARVY '%4e t%d)n+ s%fe to the '%9)'u' (oss)!$e e9tent, !"

%##ount)n+ fo se&e%$ )s4 f%#tos %nd ($%nn)n+ %##od)n+$". ?ARY IS %ss)sted )n th)s t%s4 !"

ou )n0de(th ese%#h, #onst%nt feed!%#4 %nd sound %d&)so" f%#)$)t)es. ?ASRVYs h)+h$"

s4)$$ed ese%#h te%', #o'()s)n+ of te#hn)#%$ %n%$"sts %s 5e$$ %s fund%'ent%$ s(e#)%$)sts,

9


10/46

se#ue esu$t0o)ented )nfo'%t)on on '%4et tends, '%4et %n%$"s)s %nd '%4et (ed)#t)ons.

Th)s #u#)%$ )nfo'%t)on )s +)&en %s % #onst%nt feed!%#4 to ou #usto'es, thou+h d%)$"

e(ots de$)&eed th)#e d%)$" : The Pe0sess)on Re(ot, 5hee '%4et s#en%)o fo the d%" )s

(ed)#ted, The M)d0sess)on Re(ot, t)'ed to %)&e du)n+ $un#h !e%4 , 5hee the '%4et

foe#%st fo the est of the d%" )s +)&en %nd The Post0sess)on Re(ot, the f)n%$ e(ot fo the

d%", 5hee the '%4et %nd the e(ot )tse$f )s e&)e5ed. To %dd to th)s e(os)to" of

)nfo'%t)on, ?%&" (u!$)sh % 'onth$" '%+%>)ne Ka.5 t;! Fina(-i$, 5h)#h %n%$">es the

$%test sto#4 '%4et tends %nd t%4es % #$ose $oo4 %t the &%)ous )n&est'ent o(t)ons, %nd

(odu#ts %&%)$%!$e )n the '%4et, 5h)$e % 5ee4$" e(ot, #%$$ed Ka.5 Ba


11/46

O&e the "e%s 5e h%&e ensued th%t the tust of ou #usto'es )s ou !)++est etuns. F%#tos

su#h %s ou su##ess )n the E$e#ton)# #ustod" !us)ness h%s he$(ed !u)$d on ou t%d)t)on of tust

e&en 'oe. 3onseuent)%$$" ou et%)$ #$)ent !%se e9(%nded &e" f%st.

To e'(o5e the )n&esto futhe 5e h%&e '%de se)ous effots to ensue th%t ou ese%#h #%$$s

%e d)sse')n%ted s"ste'%t)#%$$" to %$$ ou sto#4 !o4)n+ #$)ents thou+h &%)ous de$)&e"

#h%nne$s $)4e e'%)$, #h%t, SMS, (hone #%$$s et#.

Ou fo%" )nto #o''od)t)es !o4)n+ h%s !een (%th !e%4)n+ %nd 5e %e )n the (o#ess of

#on&et)n+ e9)st)n+ t%des )n #o''od)t)es )nto the 'oe o+%n)>ed '%)nste%' of t%d)n+ )n

#o''od)t" futues, !oth %s % t%d)n+ %nd )s4 hed+)n+ 'e#h%n)s'.

In the futue, ou fo#us 5)$$ !e on the e'e+)n+ !us)nesses %nd to 'eet th)s o!*e#t)&e, 5e h%&e

enh%n#ed ou '%n(o5e %nd e&)t%$)>ed ou 4no5$ed+e !%se 5)th enh%n#es fo#us on Futues

%nd O(t)ons %s 5e$$ %s the #o''od)t)es !us)ness.

=& D!($it5 Pati*i(ant$+6

The onset of the te#hno$o+" e&o$ut)on )n f)n%n#)%$ se&)#es

Indust" s%5 the e'e+en#e of ?%&" %s %n e$e#ton)# #ustod)%n e+)steed 5)th Natina-

S!*uiti!$ D!($it5 Lt% ,NSDL/ an% C!nta- S!*uiti!$ D!($it5 Lt% ,CSDL/ )n

. ?%&" set st%nd%ds en%!$)n+ futhe #o'fot to the )n&esto !" (o'ot)n+ (%(e$ess

t%d)n+ %#oss the #ount" %nd e'e+ed %s the t( > D!($it5 Pati*i(ant$ )n the #ount" )n

te's of #usto'e se&)#ed.

11


12/46

Offe)n+ % 5)de t%d)n+ ($%tfo' 5)th % du%$ 'e'!esh)( %t !oth NSDL %nd 3DSL, 5e %e %

(o5efu$ 'ed)u' fo t%d)n+ %nd sett$e'ent of de'%te)%$)>ed sh%es. ;e h%&e est%!$)shed

$)&e DPMs, Intenet %##ess to %##ounts %nd %n e%s)e t%ns%#t)on (o#ess )n ode to offe 'oe

#on&en)en#e to )nd)&)du%$ %nd #o(o%te )n&estos. A te%' of (ofess)on%$ %nd the $%test

te#hno$o+)#%$ e9(et)se %$$o#%ted e9#$us)&e$" to ou de'%t d)&)s)on )n#$ud)n+ te#hno$o+)#%$

enh%n#e'ents $)4e SPEED0e, '%4e ou es(onse t)'e u)#4 %nd ou de$)&e" )'(e##%!$e. A

5)de n%t)on%$ net5o4 '%4es ou eff)#)en#)es %##ess)!$e to %$$.

>& Di$ti9utin # Finan*ia- P%u*t$+6

The (%%d)+' sh)ft fo' (ue se$$)n+ to 4no5$ed+e !%sed se$$)n+ d)&es the

!us)ness tod%". ;)th ou 5)de (otfo$)o offe)n+s, 5e o##u(" %$$ se+'ents )n the et%)$

f)n%n#)%$ se&)#es )ndust".

A C-- te%' of h)+h$" u%$)f)ed %nd ded)#%ted (ofess)on%$s d%5n fo' the !est of %#%de')#

%nd (ofess)on%$ !%#4+ounds %e #o'')tted to '%)nt%)n)n+ h)+h $e&e$s of #$)ent se&)#e

de$)&e". Th)s h%s (o(e$$ed us to % (os)t)on %'on+ the to( d)st)!utos fo eu)t" %nd de!t

)ssues 5)th %n est)'%ted '%4et sh%e of 1J )n te's of %(($)#%t)ons 'o!)$)>ed, !es)des

!e)n+ est%!$)shed %s the $e%d)n+ (o#ue )n %$$ (u!$)# )ssues.

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13/46

To futhe t%( the )''ense +o5th (otent)%$ )n the #%()t%$ '%4ets 5e enh%n#ed the s#o(e of

ou et%)$ !%nd, Ka.5 6 t;! Fina(-i$'thee!" (o&)d)n+ ($%nn)n+ %nd %d&)so" se&)#es to

the '%ss %ff$uent. Hee 5e undest%nd the #usto'e needs %nd $)fest"$e )n the #onte9t of

(esent e%n)n+s %nd (o&)de %deu%te %d&)so" se&)#es th%t 5)$$ ne#ess%)$" he$( )n #e%t)n+

5e%$th. 2ud)#)ous ($%nn)n+ th%t )s #usto')>ed to 'eet the futue needs of the #usto'e de$)&e

% se&)#e th%t )s e9e'($%". The '%4et0s%&&" %nd the )+no%nt )n&estos, !oth f)nd th)s se&)#e

&e" s%t)sf%#to". The ed+e th%t 5e h%&e o&e #o'(et)t)on )s ou (otfo$)o of offe)n+s %nd ou

(ofess)on%$ e9(et)se. The )n&est'ent ($%nn)n+ fo e%#h #usto'e )s done 5)th %n un!)%sed

%tt)tude so th%t the se&)#e )s tu$" #usto')>ed.

Ou 'onth$" '%+%>)ne, F)n%(o$)s, (o&)des u(0d%ted '%4et )nfo'%t)on on '%4et tends,

)n&est'ent o(t)ons, o()n)ons et#. Thus e'(o5e)n+ the )n&esto to !%se e&e" f)n%n#)%$ 'o&e

on %t)on%$ thou+ht %nd (udent %n%$"s)s %nd e'!%4 on the (%th to 5e%$th #e%t)on.

?& A%.i$5 S!.i*!$+6

Unde ou et%)$ !%nd ?%&" K the F)n%(o$)s, 5e de$)&e %d&)so" se&)#es to % #oss0se#t)on

of #usto'es. The se&)#e )s !%#4ed !" % te%' of ded)#%ted %nd e9(et (ofess)on%$s 5)th

&%)ed e9(e)en#e %nd !%#4+ound )n h%nd$)n+ )n&est'ent (otfo$)os. The" %e #ont)nu%$$"

en+%+ed )n des)+n)n+ the )+ht )n&est'ent (otfo$)o fo e%#h #usto'e %##od)n+ to )nd)&)du%$

needs %nd !ud+et #ons)de%t)ons 5)th % #o'(ehens)&e su((ot s"ste' th%t fo#uses on t%d)n+

#usto'es (otfo$)os %nd (o&)d)n+ &%$u%!$e )n(uts, 'on)to)n+ %nd '%n%+)n+ the (otfo$)o

thou+h &%)ed te#hno$o+)#%$ )n)t)%t)&es. Th)s )s '%de (oss)!$e !" the e9(et)se 5e h%&e +%)ned

)n the !us)ness o&e the "e%s. Anothe &entue to5%ds !e)n+ )n&esto0f)end$" )s the

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14/46

#)#u$%t)on of % 'onth$" '%+%>)ne #%$$ed ?%&" 0 the F)n%(o$)s. 3o&e)n+ the $%test of

'%4et ne5s, tends, )n&est'ent s#he'es %nd ese%#h0!%sed o()n)ons fo' e9(ets )n &%)ous

f)n%n#)%$ f)e$ds.

@& Pi.at! C-i!nt 1u(+6

Th)s s(e#)%$)>ed d)&)s)on 5%s set u( to #%te to the h)+h net 5oth )nd)&)du%$s %nd )nst)tut)on%$

#$)ents 4ee()n+ )n ')nd th%t the" eu)e % d)ffeent 4)nd of f)n%n#)%$ ($%nn)n+ %nd

'%n%+e'ent th%t 5)$$ %u+'ent not *ust e9)st)n+ f)n%n#es !ut the) $)fe0st"$e %s 5e$$. Hee 5e

fo$$o5 % h%d0nosed !us)ness %((o%#h 5)th the soft tou#h of ded)#%ted #usto'e #%e %nd

(eson%$)>ed %ttent)on.

Fo th)s (u(ose 5e offe % #o'(ehens)&e %nd (eson%$)>ed se&)#e th%t en#o'(%sses

($%nn)n+ %nd (ote#t)on of f)n%n#es, ($%nn)n+ of !us)ness needs %nd et)e'ent needs %nd %

host of othe se&)#es, %$$ (o&)ded on % one0to0one !%s)s.

Ou ese%#h e(ots h%&e !een 5)de$" %((e#)%ted !" th)s se+'ent. The de$)&e" %nd su((ot

'odu$es h%&e !een f)ne tuned !" +)&)n+ ou #$)ents %##ess to on$)ne (otfo$)o )nfo'%t)on,

#onst%nt u(d%tes on the) (otfo$)os %s 5e$$ %s &%$ue0%dded %d&)se on (otfo$)o #hun)n+, se#to

s5)t#hes et#. The )n&est'ent e#o''end%t)ons +)&en !" ou ese%#h te%' )n the #%sh '%4et

h%&e en*o"ed % h)+h su##ess %te.

14


15/46

Int%u*tin+6

A Mutu%$ Fund )s % tust th%t (oo$s the s%&)n+s of % nu'!e of )n&estos 5ho

sh%e % #o''on f)n%n#)%$ +o%$ ).e. 'one". The 'one" thus #o$$e#ted )s then )n&ested )n #%()t%$

'%4et )nstu'ents su#h %s sh%es, de!entues %nd othe se#u)t)es. The )n#o'e e%ned thou+h

these )n&est'ents %nd the #%()t%$ %((e#)%t)on e%$)>ed )s sh%ed !" )ts un)t ho$des )n

(o(ot)on to the nu'!e of un)ts o5ned !" the'. Thus % Mutu%$ Fund )s the 'ost su)t%!$e

)n&est'ent fo the #o''on '%n %s )t offes %n o((otun)t" to )n&est )n % d)&es)f)ed,

15


16/46

(ofess)on%$$" '%n%+ed !%s4et of se#u)t)es %t % e$%t)&e$" $o5 #ost. The f$o5 #h%t !e$o5

des#)!es !o%d$" the 5o4)n+ of % 'utu%$ fund8

Sou#es80555.%'f))nd)%.#o'

The )n&est'ent )n se#u)t)es thou+h 'utu%$ fund )s s(e%d %#oss 5)de %n+e of )ndust)es %nd

se#tos %nd thus the )s4 %e edu#ed. D)&es)f)#%t)on edu#e the )s4 !e#%use %$$ sto#4 '%" not

'o&e )n the s%'e d)e#t)on %t the s%'e t)'e. V%)ous fund houses )ssue un)ts to )n&estos )n

%##od%n#e 5)th the u%ntu' of 'one" )n&ested !" the'.

D!#initin+6

16


17/46


18/46

Un)t Tust of Ind)% 6UTI7 5%s est%!$)shed )n C/ !" %n A#t of P%$)%'ent. It 5%s set u( !" the

Rese&e B%n4 of Ind)% %nd fun#t)oned unde the Re+u$%to" %nd %d')n)st%t)&e #onto$ of the

Rese&e B%n4 of Ind)%. In @ UTI 5%s de0$)n4ed fo' the RBI %nd the Indust)%$

De&e$o('ent B%n4 of Ind)% 6IDBI7 too4 o&e the e+u$%to" %nd %d')n)st%t)&e #onto$ )n

($%#e of RBI. The f)st s#he'e $%un#hed !" UTI 5%s Un)t S#he'e C. At the end of

UTI h%d Rs. C,@-- #oes of %ssets unde '%n%+e'ent.

S!*n% P;a$! 6 :6:> ,Ent5 # Pu9-i* S!*t Fun%$/

@ '%4ed the ent" of non0UTI, (u!$)# se#to 'utu%$ funds set u( !" (u!$)# se#to !%n4s

%nd L)fe Insu%n#e 3o(o%t)on of Ind)% 6LI37 %nd Gene%$ Insu%n#e 3o(o%t)on of Ind)%

6GI37. SBI Mutu%$ Fund 5%s the f)st non0UTI Mutu%$ Fund est%!$)shed )n 2une @

fo$$o5ed !" 3%n!%n4 Mutu%$ Fund 6De# @7, Pun*%! N%t)on%$ B%n4 Mutu%$ Fund 6Au+ 7,

Ind)%n B%n4 Mutu%$ Fund 6No& 7, B%n4 of Ind)% 62un -7, B%n4 of B%od% Mutu%$ Fund

6O#t 7. LI3 est%!$)shed )ts 'utu%$ fund )n 2une 5h)$e GI3 h%d set u( )ts 'utu%$ fund )n

De#e'!e -.

At the end of /, the 'utu%$ fund )ndust" h%d %ssets unde '%n%+e'ent of Rs. @,--

#oes.

T;i% P;a$! 6 :>6=> ,Ent5 # Pi.at! S!*t Fun%$/

;)th the ent" of ()&%te se#to funds )n /, % ne5 e% st%ted )n the Ind)%n 'utu%$ fund

)ndust", +)&)n+ the Ind)%n )n&estos % 5)de #ho)#e of fund f%')$)es. A$so, / 5%s the "e%

)n 5h)#h the f)st Mutu%$ Fund Re+u$%t)ons #%'e )nto !e)n+, unde 5h)#h %$$ 'utu%$ funds,

18


19/46

e9#e(t UTI 5ee to !e e+)steed %nd +o&ened. The est5h)$e ?oth%) P)onee 6no5 'e+ed

5)th F%n4$)n Te'($eton7 5%s the f)st ()&%te se#to 'utu%$ fund e+)steed )n 2u$" /.

The / SEBI 6Mutu%$ Fund7 Re+u$%t)ons 5ee su!st)tuted !" % 'oe #o'(ehens)&e %nd

e&)sed Mutu%$ Fund Re+u$%t)ons )n C. The )ndust" no5 fun#t)ons unde the SEBI

6Mutu%$ Fund7 Re+u$%t)ons C.

The nu'!e of 'utu%$ fund houses 5ent on )n#e%s)n+, 5)th '%n" foe)+n 'utu%$ funds

sett)n+ u( funds )n Ind)% %nd %$so the )ndust" h%s 5)tnessed se&e%$ 'e+es %nd %#u)s)t)ons.

As %t the end of 2%nu%" --/, thee 5ee // 'utu%$ funds 5)th tot%$ %ssets of Rs. ,,-1

#oes. The Un)t Tust of Ind)% 5)th Rs. ,1 #oes of %ssets unde '%n%+e'ent 5%s 5%"

%he%d of othe 'utu%$ funds.

Fut; P;a$! 6 $in*! F!9ua5 =>

In Fe!u%" --/, fo$$o5)n+ the e(e%$ of the Un)t Tust of Ind)% A#t C/ UTI 5%s !)fu#%ted

)nto t5o se(%%te ent)t)es. One )s the S(e#)f)ed Undet%4)n+ of the Un)t Tust of Ind)% 5)th

%ssets unde '%n%+e'ent of Rs. ,/1 #oes %s %t the end of 2%nu%" --/, e(esent)n+

!o%d$", the %ssets of US C s#he'e, %ssued etun %nd #et%)n othe s#he'es. The S(e#)f)ed

Undet%4)n+ of Un)t Tust of Ind)%, fun#t)on)n+ unde %n %d')n)st%to %nd unde the u$es

19


20/46

f%'ed !" Go&en'ent of Ind)% %nd does not #o'e unde the (u&)e5 of the Mutu%$ Fund

Re+u$%t)ons.

The se#ond )s the UTI Mutu%$ Fund, s(onsoed !" SBI, PNB, BOB %nd LI3. It )s e+)steed

5)th SEBI %nd fun#t)ons unde the Mutu%$ Fund Re+u$%t)ons. ;)th the !)fu#%t)on of the

est5h)$e UTI 5h)#h h%d )n M%#h --- 'oe th%n Rs. @C,--- #oes of %ssets unde

'%n%+e'ent %nd 5)th the sett)n+ u( of % UTI Mutu%$ Fund, #onfo')n+ to the SEBI Mutu%$

Fund Re+u$%t)ons, %nd 5)th e#ent 'e+es t%4)n+ ($%#e %'on+ d)ffeent ()&%te se#to funds,

the 'utu%$ fund )ndust" h%s enteed )ts #uent (h%se of #onso$)d%t)on %nd +o5th.

The +%(h )nd)#%tes the +o5th of %ssets o&e the "e%s.

20


21/46

6Sou#es80555.%'f))nd)%.#o'7

21


22/46

A%.antag!$ # Mutua- #un%+6

The fo$$o5)n+s %e %d&%nt%+es of Mutu%$ fund80

:& N -ag! in.!$t4!nt *4(u-$5+6

Mutu%$ funds %$$o5 "ou to '%4e %n )n&est'ent, e&en )f "ou h%&e % &e" s'%$$

%'ount to )n&est. Th)s %d&%nt%+e '%4es )t 'oe %tt%#t)&e %'on+ )n&estos.

=& In.!$ting in a .ai!t5 # in$tu4!nt$+6

Mutu%$ Funds )n&est )n % 5)de %n+e of se#u)t)es. Th)s d)&es)f)#%t)on edu#es the )s4

!" $)')t)n+ the effe#t of % (oss)!$e de#$)ne )n the &%$ue of %n" one se#u)t". You %#h)e&e th)s

d)&es)f)#%t)on thou+h % Mutu%$ Fund 5)th f% $ess 'one" th%n "ou #%n do on "ou o5n.

>& Cn.!ni!n*!+6

You #%n )n&est d)e#t$" 5)th the fund house o thou+h "ou f)n%n#)%$ %d&)so. You +et

e+u$% )nfo'%t)on on the &%$ue of "ou )n&est'ents %nd (otfo$)os of the s#he'es.

?& P#!$$ina- Manag!4!nt+6

Mutu%$ fund )n&est'ents%e '%n%+ed !" e9(e)en#ed %nd s4)$$ed (ofess)on%$s, 5ho

5)th the he$( of %n )n&est'ent ese%#h te%', %n%$">es the (efo'%n#e (os(e#ts of

#o'(%n)es %nd se$e#ts su)t%!$e )n&est'ents to %#h)e&e the o!*e#t)&e of the s#he'e.

@& Ea$5 a**!$$ t 5u 4n!5+6

In o(en0ended 'utu%$ funds, "ou #%n edee' %$$ o (%t of "ou un)ts %n" t)'e "ou

5)sh. So'e s#he'es do h%&e % $o#40)n (e)od 5hee %n )n&esto #%nnot etun the un)ts unt)$

22
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23/46

the #o'($et)on of su#h % $o#40)n (e)od. ;)th #$ose0ended s#he'es, "ou #%n se$$ "ou un)ts on

% sto#4 e9#h%n+e %t the (e&%)$)n+ '%4et ()#e o %&%)$ of the f%#)$)t" of e(u#h%se thou+h

Mutu%$ Funds %t NAV e$%ted ()#es 5h)#h so'e #$ose0ended %nd )nte&%$ s#he'es offe "ou

on '%tu)t" of s#he'e o (e)od)#%$$", %s the #%se '%"!e

& L *$t+6

Mutu%$ funds %e e$%t)&e$" $ess e9(ens)&e$" 5%" to )n&est #o'(%ed to d)e#t )n&est)n+

)n #%()t%$ '%4ets !e#%use !enef)ts of s#%$e )n !o4e%+e, #ustod)%$ %nd othe fees t%ns$%te )n

to $o5 #ost.

& 0!-- !gu-at!%+6

A$$ Mutu%$ Funds %e e+)steed 5)th SEBI %nd the" fun#t)on 5)th)n the (o&)s)ons of

st)#t e+u$%t)ons des)+ned to (ote#t the )nteests of )n&estos. The o(e%t)ons of Mutu%$ Funds

%e e+u$%$" 'on)toed !" SEBI.

& Ta3 B!n!#it$+6

An" )n#o'e d)st)!uted %fte M%#h /, -- 5)$$ !e su!*e#t to t%9 )n the %ssess'ent of

%$$ Un)t ho$des. Ho5e&e, %s % 'e%sue of #on#ess)on to Un)t ho$des of o(en0ended eu)t"

o)ented funds, )n#o'e d)st)!ut)ons fo the "e% end)n+ M%#h /, --/, 5)$$ !e t%9ed %t %

#on#ess)on%$ %te of -.1J.In #%se of Ind)&)du%$s %nd H)ndu Und)&)ded F%')$)es % dedu#t)on u(to Rs. ,--- fo'

the Tot%$ In#o'e 5)$$ !e %d')ss)!$e )n es(e#t of )n#o'e fo' )n&est'ents s(e#)f)ed )n

Se#t)on -L, )n#$ud)n+ )n#o'e fo' Un)ts of the Mutu%$ Fund. Un)ts of the s#he'es %e not

su!*e#t to ;e%$th0T%9 %nd G)ft0T%9.

23


24/46

Di$a%.antag!$ # Mutua- #un%+6

Fo$$o5)n+ %e the d)s%d&%nt%+es of Mutu%$ fund

:& Di-utin80

A$thou+h d)&es)f)#%t)on edu#es the %'ount of )s4 )n&o$&ed )n )n&est)n+ )n 'utu%$

funds, )t #%n %$so !e % d)s%d&%nt%+e due to d)$ut)on. Fo e9%'($e, )f % s)n+$e se#u)t" he$d !" %

'utu%$ fund dou!$es )n &%$ue, the 'utu%$ fund )tse$f 5ou$d not dou!$e )n &%$ue !e#%use th%t

se#u)t" )s on$" one s'%$$ (%t of the funds ho$d)n+s. B" ho$d)n+ % $%+e nu'!e of d)ffeent

)n&est'ents, 'utu%$ funds tend to do ne)the e9#e(t)on%$$" 5e$$ no e9#e(t)on%$$" (oo$".

=& F!!$ an% E3(!n$!$80

Most 'utu%$ funds #h%+e '%n%+e'ent %nd o(e%t)n+ feesth%t (%" fo the funds

'%n%+e'ent e9(enses. In %dd)t)on, so'e 'utu%$ funds #h%+e h)+h s%$es #o'')ss)ons %nd

ede'(t)on fees. And so'e funds !u" %nd t%de sh%es so often th%t the t%ns%#t)on #osts %dd

u( s)+n)f)#%nt$". So'e of these e9(enses %e #h%+ed on %n on+o)n+ !%s)s, un$)4e sto#4

)n&est'ents, fo 5h)#h % #o'')ss)on )s (%)d on$" 5hen "ou !u" %nd se$$.

24
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25/46

>& La*7 LiGui%it5+6

Ho5 f%st #%n "ou +et "ou 'one" )f "ou se$$ % 'utu%$ fund %s #o'(%ed to ETFs,

sto#4s %nd #$osed0end funds If "ou se$$ % 'utu%$ fund, "ou h%&e %##ess to "ou #%sh the d%"

%fte the s%$e. ETFs, sto#4s %nd #$osed0end funds eu)e "ou to 5%)t thee d%"s %fte "ou se$$

the )n&est'ent. I 5ou$d #%$$ the


26/46

;)de &%)et" of Mutu%$ Fund S#he'es e9)sts to #%te to the needs su#h %s f)n%n#)%$

(os)t)on, )s4 to$e%n#e %nd etun e9(e#t%t)ons et#. thus 'utu%$ funds h%s V%)et" of f$%&os,

Be)n+ % #o$$e#t)on of '%n" sto#4s, %n )n&estos #%n +o fo ()#4)n+ % 'utu%$ fund ')+ht !e

e%s". Thee %e o&e hundeds of 'utu%$ funds s#he'e to #hoose fo'. It )s e%s)e to th)n4 of

'utu%$ funds )n #%te+o)es, 'ent)oned !e$o5.

B5 *n$titutina-+6

26


27/46

:& C-$!6!n%!%+6

A #$osed0end fund h%s % st)(u$%ted '%tu)t" (e)od 5h)#h +ene%$$" %n+)n+ fo' / to 1

"e%s. The fund )s o(en fo su!s#)(t)on on$" du)n+ % s(e#)f)ed (e)od. In&estos #%n )n&est )n

the s#he'e %t the t)'e of the )n)t)%$ (u!$)# )ssue %nd thee%fte the" #%n !u" o se$$ the un)ts of

the s#he'e on the sto#4 e9#h%n+es 5hee the" %e $)sted. In ode to (o&)de %n e9)t oute to

the )n&estos, so'e #$ose0ended funds +)&e %n o(t)on of se$$)n+ !%#4 the un)ts to the Mutu%$

Fund thou+h (e)od)# e(u#h%se %t NAV e$%ted ()#es. SEBI Re+u$%t)ons st)(u$%te th%t %t

$e%st one of the t5o e9)t outes )s (o&)ded to the )n&esto.

=& O(!n6!n%!%+6

An o(en0end fund )s one th%t )s %&%)$%!$e fo su!s#)(t)on %$$ thou+h the "e%. These

do not h%&e % f)9ed '%tu)t". In&estos #%n #on&en)ent$" !u" %nd se$$ un)ts %t Net Asset

V%$ue 6NAV7 e$%ted ()#es. The 4e" fe%tue of o(en0end s#he'es )s $)u)d)t".

>& Int!.a-+6

Inte&%$ S#he'es %e th%t s#he'e, 5h)#h #o'!)nes the fe%tues of o(en0ended %nd

#$ose0ended s#he'es. The un)ts '%" !e t%ded on the sto#4 e9#h%n+e o '%" !e o(en fo

s%$e o ede'(t)on du)n+ (e0dete')ned )nte&%$s %t NAV e$%ted ()#es.

B5 In.!$t4!nt+6

:& EGuit5 Fun%+6

These funds )n&est % '%9)'u' (%t of the) #o(us )nto eu)t)es ho$d)n+s. The stu#tue of

the fund '%" &%" d)ffeent fo d)ffeent s#he'es %nd the fund '%n%+es out$oo4 on d)ffeent

27


28/46

sto#4s. The Eu)t" Funds %e su!0#$%ss)f)ed de(end)n+ u(on the) )n&est'ent o!*e#t)&e, %s

fo$$o5s8

D)&es)f)ed Eu)t" Funds

M)d#%( Funds

Se#to S(e#)f)# Funds

T%9 S%&)n+s Funds 6ELSS7

Eu)t" )n&est'ents %e 'e%nt fo % $on+e t)'e ho)>on, thus Eu)t" funds %n4 h)+h on

The )s40etun '%t)9.

=& D!9t Fun%+6

The o!*e#t)&e of these Funds )s to )n&est )n de!t (%(es. Go&en'ent %utho)t)es,

()&%te #o'(%n)es, !%n4s %nd f)n%n#)%$ )nst)tut)ons %e so'e of the '%*o )ssues of de!t

(%(es. B" )n&est)n+ )n de!t )nstu'ents, these funds ensue $o5 )s4 %nd (o&)de st%!$e

)n#o'e to the )n&estos. De!t funds %e futhe #$%ss)f)ed %s8

1i-t Fun%$+6

In&est the) #o(us )n se#u)t)es )ssued !" Go&en'ent, (o(u$%$" 4no5n %s

Go&en'ent of Ind)% de!t (%(es. These Funds #%" >eo Def%u$t )s4 !ut %e %sso#)%ted 5)th

Inteest R%te )s4. These s#he'es %e s%fe %s the" )n&est )n (%(es !%#4ed !" Go&en'ent.

In*4! Fun%$80

In&est % '%*o (ot)on )nto &%)ous de!t )nstu'ents su#h %s !onds, #o(o%te de!entues

%nd Go&en'ent se#u)t)es.

Mnt;-5 In*4! P-an$ ,MIP$/+6

In&ests '%9)'u' of the) tot%$ #o(us )n de!t )nstu'ents 5h)$e the" t%4e

28


29/46

')n)'u' e9(osue )n eu)t)es. It +ets !enef)t of !oth eu)t" %nd de!t '%4et. These s#he'e

%n4s s$)+ht$" h)+h on the )s40etun '%t)9 5hen #o'(%ed 5)th othe de!t s#he'es.

S;t T!4 P-an$ ,STP$/80STP Me%ns fo )n&est'ent ho)>on fo thee to s)9 'onths. These funds ()'%)$" )n&est )n

shot te' (%(es $)4e 3et)f)#%te of De(os)ts 63Ds7 %nd 3o''e#)%$ P%(es 63Ps7. So'e

(ot)on of the #o(us )s %$so )n&ested )n #o(o%te de!entues.

LiGui% Fun%$+6.

A$so 4no5n %s Mone" M%4et S#he'es, These funds (o&)des e%s" $)u)d)t" %nd

(ese&%t)on of #%()t%$. These s#he'es )n&est )n shot0te' )nstu'ents $)4e Te%su" B)$$s,

)nte0!%n4 #%$$ 'one" '%4et, 3Ps %nd 3Ds. These funds %e 'e%nt fo shot0te' #%sh

'%n%+e'ent of #o(o%te houses %nd %e 'e%nt fo %n )n&est'ent ho)>on of d%" to /

'onths. These s#he'es %n4 $o5 on )s40etun '%t)9 %nd %e #ons)deed to !e the s%fest

%'on+st %$$ #%te+o)es of 'utu%$ funds.

>& H59i% #un%+6

As the n%'e su++est the", %e % ')9 of !oth eu)t" %nd de!t funds. The" )n&est )n !oth

eu)t)es %nd f)9ed )n#o'e se#u)t)es, 5h)#h %e )n $)ne 5)th (e0def)ned )n&est'ent o!*e#t)&e

of the s#he'e. These s#he'es %)' to (o&)de )n&estos 5)th the !est of !oth the 5o$ds.

Eu)t" (%t (o&)des +o5th %nd the de!t (%t (o&)des st%!)$)t" )n etuns.

Further the mutual funds can be broadl class!f!ed on the bas!s of !n"estment #arameter$

E%#h #%te+o" of funds )s !%#4ed !" %n )n&est'ent (h)$oso(h", 5h)#h )s (e0def)ned )n the

o!*e#t)&es of the fund. The )n&esto #%n %$)+n h)s o5n )n&est'ent needs 5)th the funds

o!*e#t)&e %nd )n&est %##od)n+$".

29


30/46

?& Mn!5 4a7!t Fun%+6

Mone" M%4et S#he'es %)' to (o&)de e%s" $)u)d)t", (ese&%t)on of #%()t%$ %nd

'ode%te )n#o'e. These s#he'es +ene%$$" )n&est )n s%fe, shot0te' )nstu'ents, su#h %s

te%su" !)$$s, #et)f)#%tes of de(os)t, #o''e#)%$ (%(e %nd )nte0!%n4 #%$$ 'one".

Ru-!$ an% R!gu-atin$ # Mutua- #un%$

The stu#tue of 'utu%$ funds )n Ind)% )s +u)ded !" the SEBI. Re+u$%t)ons, C.These

e+u$%t)ons '%4e )t '%nd%to" fo 'utu%$ fund to h%&e thee stu#tues of s(onso tustee %nd

%sset M%n%+e'ent 3o'(%n". The s(onso of the 'utu%$ fund %nd %((o)nts the tustees. The

tustees %e es(ons)!$e to the )n&estos )n 'utu%$ fund %nd %((o)nt the AM3 fo '%n%+)n+ the

)n&est'ent (otfo$)o. The AM3 )s the !us)ness f%#e of the 'utu%$ fund, %s )t '%n%+es %$$ the

%ff%)s of the 'utu%$ fund. The AM3 %nd the 'utu%$ fund h%&e to !e e+)steed 5)th SEBI.

SEBI RE1ULATIONS +

As f% %s 'utu%$ funds %e #on#ened, SEBI fo'u$%tes (o$)#)es %nd e+u$%tes the 'utu%$ funds

to (ote#t the )nteest of the )n&estos.

SEBI not)f)ed e+u$%t)ons fo the 'utu%$ funds )n /. Thee%fte, 'utu%$ funds s(onsoed !"

()&%te se#to ent)t)es 5ee %$$o5ed to ente the #%()t%$ '%4et.

30


31/46

The e+u$%t)ons 5ee fu$$" e&)sed )n C %nd h%&e !een %'ended thee%fte fo' t)'e to

t)'e.

SEBI h%s %$so )ssued +u)de$)nes to the 'utu%$ funds fo' t)'e to t)'e to (ote#t the )nteests

of )n&estos.

A$$ 'utu%$ funds 5hethe (o'oted !" (u!$)# se#to o ()&%te se#to ent)t)es )n#$ud)n+ those

(o'oted !" foe)+n ent)t)es %e +o&ened !" the s%'e set of Re+u$%t)ons. The )s4s %sso#)%ted

5)th the s#he'es $%un#hed !" the 'utu%$ funds s(onsoed !" these ent)t)es %e of s)')$% t"(e.

Thee )s no d)st)n#t)on )n e+u$%to" eu)e'ents fo these 'utu%$ funds %nd %$$ %e su!*e#t to

'on)to)n+ %nd )ns(e#t)ons !" SEBI. SEBI Re+u$%t)ons eu)e th%t %t $e%st t5o th)ds of the d)e#tos of tustee #o'(%n" o !o%d

of tustees 'ust !e )nde(endent ).e. the" shou$d not !e %sso#)%ted 5)th the s(onsos.

A$so, 1-J of the d)e#tos of AM3 'ust !e )nde(endent. A$$ 'utu%$ funds %e eu)ed to !e

e+)steed 5)th SEBI !efoe the" $%un#h %n" s#he'e.

Futhe SEBI Re+u$%t)ons, )nte0%$)%, st)(u$%te th%t MFs #%nnot +u%%ntee etuns )n %n"

s#he'e %nd th%t e%#h s#he'e )s su!*e#t to - 8 1 #ond)t)on I.e ')n)'u' - )n&estos (e

s#he'e %nd one )n&esto #%n ho$d 'oe th%n 1J st%4e )n the #o(us )n th%t one s#he'e.

A$so SEBI h%s (e')tted MFs to $%un#h s#he'es o&ese%s su!*e#t &%)ous est)#t)ons %nd %$so

to $%un#h s#he'es $)n4ed to Re%$ Est%te, O(t)ons %nd Futues, 3o''od)t)es, et#.

ASSOCIATION OF MUTUAL FUNDS IN INDIA ,AMFI/+

;)th the )n#e%se )n 'utu%$ fund ($%"es )n Ind)%, % need fo 'utu%$ fund %sso#)%t)on )n

Ind)% 5%s +ene%ted to fun#t)on %s % non0(of)t o+%n)>%t)on. Asso#)%t)on of Mutu%$ Funds )n

Ind)% 6AMFI7 5%s )n#o(o%ted on nd Au+ust, 1. AMFI )s %n %(e9 !od" of %$$ Asset

M%n%+e'ent 3o'(%n)es 6AM37 5h)#h h%s !een e+)steed 5)th SEBI. T)$$ d%te %$$ the AM3s

%e th%t h%&e $%un#hed 'utu%$ fund s#he'es %e )ts 'e'!es. It fun#t)ons unde the

31


32/46

su(e&)s)on %nd +u)de$)nes of )ts Bo%d of D)e#tos. Asso#)%t)on of Mutu%$ Funds Ind)% h%s

!ou+ht do5n the Ind)%n Mutu%$ Fund Indust" to % (ofess)on%$ %nd he%$th" '%4et 5)th

eth)#%$ $)nes enh%n#)n+ %nd '%)nt%)n)n+ st%nd%ds. It fo$$o5s the ()n#)($e of !oth (ote#t)n+

%nd (o'ot)n+ the )nteests of 'utu%$ funds %s 5e$$ %s

the) un)t ho$des.

T;! O9)!*ti.!$ # A$$*iatin # Mutua- Fun%$ in In%ia+

The Asso#)%t)on of Mutu%$ Funds of Ind)% 5o4s 5)th /- e+)steed AM3s of the#ount". It

h%s #et%)n def)ned o!*e#t)&es 5h)#h *u9t%(oses the +u)de$)nes of )ts Bo%d ofD)e#tos. The

o!*e#t)&es %e %s fo$$o5s8

Th)s 'utu%$ fund %sso#)%t)on of Ind)% '%)nt%)ns h)+h (ofess)on%$ %nd eth)#%$ st%nd%ds )n %$$

%e%s of o(e%t)on of the )ndust".

It %$so e#o''ends %nd (o'otes the to( #$%ss !us)ness (%#t)#es %nd #ode of #ondu#t 5h)#h

)s fo$$o5ed !" 'e'!es %nd e$%ted (eo($e en+%+ed )n the %#t)&)t)es of 'utu%$ fund %nd %sset

'%n%+e'ent. The %+en#)es 5ho %e !" %n" 'e%ns #onne#ted o )n&o$&ed )n the f)e$d of #%()t%$

'%4ets %nd f)n%n#)%$ se&)#es %$so )n&o$&ed )n th)s #ode of #ondu#t of the %sso#)%t)on.

AMFI )nte%#ts 5)th SEBI %nd 5o4s %##od)n+ to SEBIs +u)de$)nes )n the 'utu%$ fund

)ndust".

Asso#)%t)ons of Mutu%$ Fund of Ind)% do e(esent the Go&en'ent of Ind)%, the Rese&e B%n4

of Ind)% %nd othe e$%ted !od)es on '%ttes e$%t)n+ to the Mutu%$ Fund Indust".

It de&e$o(s % te%' of 5e$$ u%$)f)ed %nd t%)ned A+ent d)st)!utos. It )'($e'ents %

(o+%''ed of t%)n)n+ %nd #et)f)#%t)on fo %$$ )nte'ed)%)es %nd othe en+%+ed )n the

'utu%$ fund )ndust".

AMFI undet%4es %$$ Ind)% %5%eness (o+%''ed fo )n&estos )n ode to (o'ote (o(e

undest%nd)n+ of the #on#e(t %nd 5o4)n+ of 'utu%$ funds.

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At $%st !ut not the $e%st %sso#)%t)on of 'utu%$ fund of Ind)% %$so d)sse')n%te )nfo'%t)ons on

Mutu%$ Fund Indust" %nd undet%4es stud)es %nd ese%#h e)the d)e#t$" o )n %sso#)%t)on

5)th othe !od)es.

1-$$a5+6

N!t A$$!t$ .a-u!+6

Net Asset V%$ue )s the '%4et &%$ueof the %ssets of the s#he'e ')nus )ts $)%!)$)t)es. The

(e un)t NAV )s the net %sset &%$ue of the s#he'e d)&)ded !" the nu'!e of un)ts outst%nd)n+

on the V%$u%t)on D%te.

Sa-!$ Pi*!+6

S%$e ()#e )s the ()#e "ou (%" 5hen "ou )n&est )n % s#he'e, )t %$so #%$$ed Offe P)#e.

It '%" )n#$ude % s%$es $o%d.

R!(u*;a$! (i*!+6

It )s the ()#e %t 5h)#h % #$ose0ended s#he'e e(u#h%ses )ts un)ts %nd )t '%" )n#$ude %

!%#40end $o%d Th)s )s %$so #%$$ed B)d P)#e.

R!%!4(tin (i*!+6

It )s the ()#e %t 5h)#h o(en0ended s#he'es e(u#h%se the) un)ts %nd #$ose0ended

s#he'es edee' the) un)ts on '%tu)t". Su#h ()#es %e NAV e$%ted.

Sa-!$ La%+6

It )s % #h%+e #o$$e#ted !" % s#he'e 5hen )t se$$s the un)ts. A$so #%$$ed %s Font0End

Lo%d. S#he'es th%t do not #h%+e % $o%d %e #%$$ed No Lo%d s#he'es.

R!(u*;a$! Ba*76!n% La%+6

It )s % #h%+e #o$$e#ted !" % s#he'e 5hen )t !u"s !%#4 the un)ts fo' the un)t ho$des.

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Lit!atu! R!.i!

D.V.In+$e. !oo4 )n


35/46

Sou#es80 555.*sto.#o'

N!!% # t;! $tu%5+6

The '%)n (u(ose of do)n+ th)s (o*e#t )s to undest%nd the Mutu%$ Fund %nd )ts 5o4)n+.

Th)s he$(s to 4no5 )n det%)$s %!out d)ffeent Assets M%n%+e'ent #o'(%n)es 6AM3S7, %nd

the) +o5th, etuns %nd )s4.

It %$so he$(s )n undest%nd)n+ d)ffeent 'utu%$ Funds $)4e $%+e #%(, M)d#%(, S'%$$ #%(

%nd ELSS et#. Be#%use '" stud" )s !%sed on d)ffeent ')d #%( s#he'es of d)ffeent AM3 %s

5e$$ %s stud" the) )s4 %nd etun.

F)n%$$" th)s 5ou$d he$( to undest%nd the Mutu%$ Funds %nd %$so 4no5 5h)#h M)d#%(

s#he'es %e !enef)#)%$ fo )n&esto (o)nt of &)e5.

O9)!*ti.!+6

. To 4no5 the !enef)ts %&%)$%!$e fo' M)d#%( s#he'es )n Mutu%$ Fund )n&est'ent.

. To 4no5 the d)ffeent t"(es of 'utu%$ fund s#he'es %&%)$%!$e.

/. To +)&e %n )de% %!out the e+u$%t)ons of 'utu%$ funds.. To %n%$">e the (%%'etes of se$e#ted M)d#%( s#he'es to #o'(%e the se$e#ted s#he'es 5)th

the !en#h'%4.1. To stud" the )s4 e5%d (%%'etes of se$e#ted M)d#%( s#he'es.

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S*(!+6

The '%)n (u(ose of th)s stud" )s to 4no5 %!out d)ffeent Assets M%n%+e'ent

3o'(%n"s 6AM3s7 %nd the) d)ffeent s#he'es %nd )ts (efo'%n#e. S)n#e %$$ Asset

M%n%+e'ent 3o'(%n" #o'e out 5)th s)')$% t"(e of s#he'es, e&en '%4et )s &o$%t)$e so, )t

!e#o'es #u#)%$ fo the AM3 to (efo' #onst%nt$" 5e$$ %s to su&)&e )n the #o'(et)t)&e

'%4et %nd (o&)de '%9)'u' #%()t%$ %((o()%t)on o etuns to the )n&estos. Othe th%n the

(efo'%n#e of the fund )s de(end)n+ u(on the 4)nd of sto#4 #hosen !" the Fund '%n%+e of

the #o'(%n".

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R!$!a*; M!t;%-g5+6

Data *--!*tin+

A '%*o (ot)on of the d%t% )n th)s stud" h%s !een #o$$e#ted thou+h se#ond%" sou#es of d%t%.

3o$$e#t)on of Se#ond%" d%t% sou#es )n#$uded8

Rese%#h !%sed on$)ne (ot%$s.

Annu%$ e(ot of the 'utu%$ fund #o'(%n)es $)4e T%t% Mutu%$ fund, ?ot%4 'utu%$ fund, et#.

Othe (u!$)shed '%te)%$s $)4e MF M%+%>)nes, F)n%(o$)s ).e. (u!$)shed !" ?%&" Sto#4

Bo4)n+ Ltd

Sa4(-! (#i-!+

The s%'($e eu)ed fo the stud" h%s !een se$e#ted thou+h %ndo' s%'($)n+ 'ethod

fo' the %&%)$%!$e $)st of MIDCAPs#he'es of 'utu%$ fund %&%)$%!$e )n the '%4et.

3on&en)ent s%'($)n+ of 1 MID3AP s#he'es of 'utu%$ fund su#h %s

. HDF3 M)d#%( o((otun)t" fund. LT M)d#%( fund

/. T%t% M)d#%( Fund

. ?ot%4 M)d#%(

1. Re$)+%e M)d#%( fund.

P!i%+

The stud" #o&eed % (e)od --0- fo #o'(%)son of M)d#%( s#he'es of d)ffeent 'utu%$

fund #o'(%n)es.Data ana-5$i$+

C4(un% annua- gt; at! ,CA1R/+6

The "e%0o&e0"e% +o5th %te of %n )n&est'ent o&e % s(e#)f)ed (e)od of t)'e. The

#o'(ound %nnu%$ +o5th %te )s #%$#u$%ted !" t%4)n+ the nth oot of the tot%$ (e#ent%+e

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38/46

+o5th %te, 5hee n )s the nu'!e of "e%s )n the (e)od !e)n+ #ons)deed. The 3AGR

fo'u$% )s80

F4u-a

Stan%a% D!.iatin+6

St%nd%d de&)%t)on )s % st%t)st)#%$ 'e%sue of the %n+e of % funds (efo'%n#e. ;hen

% fund h%s % h)+h st%nd%d de&)%t)on, )ts %n+e of (efo'%n#e h%s !een &e" 5)de, )nd)#%t)n+

th%t thee )s % +e%te (otent)%$ fo &o$%t)$)t". The St%nd%d de&)%t)on fo'u$% )s80

F4u-a # Stan%a% D!.iatin+

.

76

=

n

xxs

S;a( ati+6

A %t)o de&e$o(ed !" No!e$ $%ue%te ;)$$)%' F. Sh%(e to 'e%sue )s40%d*usted (efo'%n#e.

The Sh%(e %t)o )s #%$#u$%ted !" su!t%#t)n+ the )s40fee %te 0 su#h %s th%t of the -0"e%

Ind)%n +o&en'ent !ond 0 fo' the %te of etun fo % (otfo$)o %nd d)&)d)n+ the esu$t !" the

st%nd%d de&)%t)on of the (otfo$)o etuns. The Sh%(e %t)o fo'u$% )s8

F4u-a+6

38

3AGR 6 EV Q BV7 Q n0


39/46

p

rp rf

;hee8

rp E9(e#ted Potfo$)o etun

rf R)s4 fee %te

p Potfo$)o St%nd%d De&)%t)on

A-(;a+6

A$(h% 'e%sues the d)ffeen#e !et5een % funds %#tu%$ etuns %nd )ts e9(e#ted (efo'%n#e,

+)&en )ts $e&e$ of )s4 6%s 'e%sued !" !et%7. A (os)t)&e %$(h% f)+ue )nd)#%tes the fund h%s

(efo'ed !ette th%n )ts !et% 5ou$d (ed)#t. In #ont%st, % ne+%t)&e %$(h% )nd)#%tes % fund h%s

unde(efo'ed, +)&en the e9(e#t%t)ons est%!$)shed !" the funds !et%. So'e )n&estos see

%$(h% %s % 'e%sue'ent of the &%$ue %dded o su!t%#ted !" % funds '%n%+e. Thee %e

$)')t%t)ons to %$(h%s %!)$)t" to %##u%te$" de()#t % '%n%+es %dded o su!t%#ted &%$ue. In

so'e #%ses, % ne+%t)&e %$(h% #%n esu$t fo' the e9(enses th%t %e (esent )n the fund f)+ues

!ut %e not (esent )n the f)+ues of the #o'(%)son )nde9. A$(h% )s de(endent on the %##u%#"

39


40/46

of !et%8 If the )n&esto %##e(ts !et% %s % #on#$us)&e def)n)t)on of )s4, % (os)t)&e %$(h% 5ou$d !e

% #on#$us)&e )nd)#%to of +ood fund (efo'%n#e.

F4u-a+6

"09

;hee,

" 0 Me%n &%$ue of etuns of the fund

9 K Me%n &%$ue of etun of the )nde9

K Bet% &%$ue of the fund

B!ta+6

A 'e%sue of the &o$%t)$)t" o s"ste'%t)# )s4 of % se#u)t" o % (otfo$)o )n #o'(%)son to the

'%4et %s % 5ho$e. Bet% )s used )n the #%()t%$ %sset ()#)n+ 'ode$ 63APM7, % 'ode$ th%t

#%$#u$%tes the e9(e#ted etun of %n %sset !%sed on )ts !et% %nd e9(e#ted '%4et etuns.

F4u-a+6

n9" 0 697 6"7 n9 0 697

;hee,

40


41/46

n K Nu'!e of d%"s

9 K Retun of the )nde9

" Ketun of the Fund

Ana-5$i$ # Fi.! *4(ani!$+6

Tata

Mi%*a(

Kta7 HDFC L8T R!-iga! CN2

Mi%*a(

St%nd%d

de&)%t)on

1.@J /.@@J /.-J 1.J .CJ

3AGR /.1J 22.74% 30.55% 25.70% 30.20% 20%

A$(h% 9.33 1. -.11 ./ -.-1

Bet% -. . -. -. -.C

Sh%(e -.C -.@ -.@ -.C1 -.@

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Li4itatin$+6

. The fo#us 5%s done on ')d#%( s#he'es %nd not on $%+e #%( %nd s'%$$ #%(.. The ()'%" d%t% 5%s not %&%)$%!$e

/. The fo#us 5%s done on$" on 1 M)d#%( s#he'es %nd not %$$ othe M)d#%( s#he'e

42


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Cn*-u$in$+6

Afte %n%$">)n+ %$$ the s#he'es HDF3 M)d#%( o((otun)t" Fund %nd Re$e+%e In&es#o

M)d#%( s#he'es h%&e (efo'ed !ette then %$$ othe s#he'es se$e#ted fo the stud")n+ )s4

e5%d (%%'ete. The 3N M)d#%( )s the Ben#h'%4 se$e#ted !" %$$ the s#he'es. Afte

%n%$">)n+ the s#he'es %nd #o'(%)n+ the' 5)th the !en#h '%4, )t )s found th%t %$$ f)&e

s#he'es h%&e (efo'ed s)+n)f)#%nt$" !ette th%n the) !en#h'%4. Out of %$$ the ')d#%(

s#he'es, HDF3 M)d#%( o((otun)t" %nd Re$)+%e M)d#%( s#he'es h%&e $o5e st%nd%d

de&)%t)on %nd the) Sh%(e %t)o )s h)+he %s #o'(%ed to %$$ othe s#he'es. It 'e%ns these

s#he'es h%&e !e$o5 %&e%+e )s4 %nd h%&e de$)&eed %!o&e %&e%+e etuns. Th)s 'e%ns th%t

the fund '%n%+e h%s (efo'ed !ette )n te's of se$e#t)n+ %nd '%n%+)n+ the (otfo$)o. Bet%

%ssesses the &o$%t)$)t" of the (otfo$)o. In the (esent stud", ?ot%4 ')d#%( h%s the h)+hest !et%

).e. .-. th)s )nd)#%tes th%t ?ot%4 M)d#%( s#he'es )s 'oe &o$%t)$e th%n the !en#h'%4. H)+h

!et% (otfo$)os #%n !e )s4 du)n+ un#et%)n t)'es.

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44/46

R!*44!n%atin+6

A$$ the 1 ')d #%( s#he'es %e not 'e%nt fo (eo($e 5ho %e O$d %+ed !e#%use these s#he'es

%e &e" %++ess)&e %nd &e" )s4", so th%t these s#he'es %e $on+ te' %n+)n+ fo' 1 to -

"e%s then on$" )n&esto +et h)+he etun. Hen#e )t '%4es 'oe sense of t%+et)n+ the "outh

%nd ')dd$e %+ed (eo($e. Th)s 5%s #h%%#te)>ed !" the Bu$$ Ph%se !efoe the Mod)

+o&en'ent #%'e )nto (o5e. Th)s '%" not ne#ess%)$" 'e%n th%t shot te' 5ou$d offe su#h

h)+h etuns.

44


45/46

Bi9-iga(;5+6

&7a.5&*4The #o'(%n" (of)$e 5%s t%4en fo' th)s 5e!s)te.

&.a-u!!$!a*;&*4The etuns %nd Ind)#es F)+ues 5%s (o&)ded !" th)s 5e

&a4#iin%ia&*4The Ru$es %nd Re+u$%t)on of SEBI %nd AMFI 5%s t%4en fo' th)s 5e!

s)te.

&tata4utua-#un%&*4T%t% M)d#%( s#he'es NAV 5%s t%4en fo' th)s 5e! s)te.

&!-iga!in.!$*&*4Re$)+%e In&es#o M)d#%( s#he'es NAV 5%s t%4en fo' th)s 5e!

s)te.

&7ta74utua-&*4?ot%4 M)d#%( s#he'es NAV 5%s t%4en fo' th)s 5e! s)te.

&;%#*#u%&*4HDF3 M)d#%( O((otun)t" s#he'es NAV 5%s t%4en fo' th)s 5e! s)te.

&-nt4#&*4LT M)d#%( S#he'es NAV 5%s t%4en fo' th)s 5e! s)te.

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