Analysis of Sectoral Mutual Funds

ANALYSIS OF SECTORAL MUTUAL FUNDS
1.1)
1.2)
1.3)
1.4)
1.5)
ABOUT TOPICS
IMPORTANCE OF TOPICS
IMPORTANCE OF STUDY
BENEFITS OF STUDY
1.4.1) TO ORGANIZATION
1.4.2) TO MY SELF
COMPANY PROFILE
1.1) ABOUT TOPICS:

The researcher has taken five sectoral mutual funds to understand the risks and return with
respect to BSE index.
Sectoral mutual funds has the different schemes available in the market for investors may
invest their money into the different sectoral wise and get maximum returns out of it, here the
investor has the number of option to invest their money into different sectoral wise so that
researcher has to analysis the which sector gave the maximum return as compare to selected
mutual funds schemes. Hence the researcher has to compare different sectoral mutual funds
with the return of BSE index returns.
In order to get a clear understanding as to what is the underlying concept of mutual fund let
us see the following example.
In a cooperative housing society that has 100 apartments, a security guard is to be

appointed. You find out that a good security guard costs Rs 2000 per month. Now for a single
household to pay Rs 2000/- every month, it would be a heavy burden.
Now if all the households got together and shared the cost then it would make a better
economic decision. Because all the residents of the housing society have the same need and
therefore it makes sense to pool together.
For this act of pooling together you approach the residents welfare association (RWA). All
the 100 flat owners contribute Rs 20 per month and ask (RWA) to appoint a security guard.
Now it is the RWAs responsibility to ensure that the security guard is doing his job effectively.
They also monitor his performance. If the RWA is unhappy with the security guard they can
change the guard. The members keep contributing. If one flat owner sells his flat and moves out
of the society, another flat owner takes his place and starts contributing.
Now in a mutual fund structure there is a trust, which is like the members of the cooperative society. The asset management company is something like the RWA who is
responsible for getting the right kind of security guard and monitoring whether he is doing the
right kind of job or not. And lastly the security guard is the investment.
1.2) IMPORTANCE OF TOPICS:

This study helps to researcher to get practical knowledge and implement into the real
situation. It is also helps to find out the where the investor may invest their money with
minimum risk and maximum return. Importance of topics is the investor may invest different
sector but which sector give maximum return with minimum risk but there is no possible
without taking risk any investor cannot get return out of it. The main objective is that the
whether the investors get more return as compare to BSE index.
Researcher gets clear understanding of from where the investor gets maximum return.
Organization gets the current data related to topics.
This study helps to an investor to find out their investment target.
This study also helps in find out the return of Mutual funds with comparison of return of BSE
index which gives maximum return with less risk.
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is invested by the fund manager in different
types of securities depending upon the objective of the scheme. These could range from shares
to debentures to money market instruments. The income earned through these investments and
the capital appreciation realized by the scheme is shared by its unit holders in proportion to the
number of units owned by them (pro rata). Thus a Mutual Fund is the most suitable investment
for the common man as it offers an opportunity to invest in a diversified, professionally
managed portfolio at a relatively low cost. Anybody with an investible surplus of as little as a
3
few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined
investment objective and strategy.
1.3) IMPORTANCE OF STUDY:

This study will help to organization for future expansion.
This study helps to find out the scope from where the investor may invest their
money and can get maximum return out of it.
It helps in making an investment in Sector wise Mutual Funds.
Organization get current data related to Sectoral Mutual Funds.
This study helps me to understand investment in different Sector wise Mutual
Fund.
It helps me to understand how to find correlation between risks and return
associate with Secoral Mutual funds and BSE index.
1.4)
BENEFITS OF STUDY:
1.4.1) TO ORGANIZATION:-

This study helps to find out the scope from where the investor may
invest their money and can get maximum return out of it.

1.4.2) TO MYSELF: This study helps me to understand investment in different Sector wise
Mutual Fund.
5
It helps me to understand how to find correlation between risks and

return associate with Secoral Mutual funds and BSE index.
To get deep knowledge in specialization subject and have practical
knowledge out of it. Comparison between Theoretical knowledge
obtained in BBA and to get Experience of Business life.
1.5) COMPANY PROFILE:

TEJAS INVESTMENT
Tejas investment is a subsidiary company of sharp education and trading pvt.ltd. It is

completely manage by Mr. Tejas Nayak. Who himself is the chairman and managing director of
tejas investment. Who has 7 years of experience in the field of stock market analysis. The
chairman and managing director of sharp education training put. Ltd. is Mr. Aditya Srinivas.
The company provides wide range of financial services including.
BSE
Cash Trading
NSE
6
Cash Trading
NSE Future
&
Commodities
Markets
Trading
Financial
Services
IPO Trading
Mutual Funds
[Financial Services Provided by TEJAS Investment]
Our vision:
To be a listed company in the next five years that is 2015.
Our mission:
To be a number one company in the field of providing quality education and guidance.
1.
2.
3.
4.
5.
6.
BSE Cash Trading.

NSE Cash Trading.
NSE Future and Option.
Commodities Markets trading. (MCX)
IPO Trading.
Mutual Funds.
The company has made significant progress in the last 6 year of operation and has been able
to achieve very good growth. The company has recently also entered into portfolio
management service and provides advisory base services based on the requirement of the
clients. This includes portfolio creation, portfolio restructuring and portfolio management. The
company is actively engaged in business diversification and has entered the most promising
7
sector that is the education sector. The company provides stock market related short-term
courses like:
Short term
cources by
Bases of
Investme
1)
2)
3)
4)
Fundament
al and
Technical
Analysis
Personality
Developm
Courses
on
Portfolio
Managem
Bases of Investment.
Fundamental and Technical Analysis.
Personality Development.
Courses on Portfolio Management.
The company was formed in 2004 and has been in operation since there.
2.1)
2.2)
INTRO DUCATIO OF SECTORAL MUTUAL FUNDS

MEANING OF SECTORS
2.2.1) FMCG SECTORS
2.2.2) PHARMACEUTICAL SECTORS
2.2.3) INFRASTRUCTURE SECTORS
2.2.4) POWER SECTORS
2.2.5) TECHNOLOGY SECTORS
2.1) INTRODUCTION OF SECTOR MUTUAL FUNDS:

There are several different ways one can diversify a portfolio, such as the different
categories of the Morningstar style box, which contain several different asset classes. But
9
another common way to diversify is between the various sectors of the economy. This is
usually accomplished with mutual funds that concentrate in one of the major sectors, such as
natural resources or utilities. This article will examine the nature and composition of sector
funds and the advantages and disadvantages that they present to investors.
WHAT IS A SECTOR FUND?

As the name implies, a sector fund is a mutual fund that invests in a specific sector of the
economy, such as energy or utilities. Sector funds come in many different flavors and can vary
substantially in market capitalization, investment objective (i.e. growth and/or income) and
class of securities within the portfolio. Sector funds do not fall into a particular category in the
Morningstar style box, such as large-cap value or mid-cap growth.
10
2.2) MEANING OF SECTOR:

The manufacturer of the some products is come together and establishes of homogeneous
groups and this group is called an industry which is particular sector. There are many
companies or scrip that manufacturer the same products provide services are comes and
specified under the particular name that is called sector. E.G. HLL specified under the FMCG
sector, Infosys, Wipro under the IT sector.
There are many sectors in which many types of scrip are listed. Few sectors among these are
as follows.
Software Sector
Banking Sector
FMCG Sector
Power Sector
Garment Sector
Automobile Sector
Cement Sector
Petrochemicals Sector
Telecommunication Sector
Pharmaceutical Sector
Shipping Sector
Agriculture Sector
Steel Sector
Fertilizer Sector
In all sector number of scrip are listed so it is easier to find out any particular scrip from the
market.
From the above sector I have select five sectors out of it for preparing my project report and
enhancing my knowledge pertaining to Sectoral Mutual Funds.
These are my selected Sectoral Mutual Funds are as below:

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1)
2)
3)
4)
5)
FAST MOVING CONSUMER GOODS (FMCG) Sector

PHARMACEUTICAL Sector
INFRASTRUCTURE Sector
POWER Sector
TECHNOLOGY Sector
So here I would like to give brief idea about each of selected Sector;
2.2.1) FAST MOVING CONSUMER GOODS (FMCG) Sector:
WHAT ARE FMCGS?
We regularly talk about things like butter, potato chips, toothpastes, razors, household care
products, packaged food and beverages, etc. But do we know under which category these
things come? They are called FMCGs. FMCG is an acronym for Fast Moving Consumer
Goods, which refer to things that we buy from local supermarkets on daily basis, the things that
have high turnover and are relatively cheaper.
FMCG Products and Categories:Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps);
Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper products;
Household care fabric wash including laundry soaps and synthetic detergents; household
cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides
and mosquito repellents, metal polish and furniture polish;
Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged
goods.
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FMCG companies maintain intense distribution network. Companies spend a large portion
of their budget on maintaining distribution networks. New entrants who wish to bring their
products in the national level need to invest huge sums of money on promoting brands.
Manufacturing can be outsourced. A recent phenomenon in the sector was entry of
multinationals and cheaper imports. Also the market is more pressurized with presence of local
players in rural areas and state brands.
SWOT Analysis of FMCG Sector

Strengths:
1. Low operational costs
2. Presence of established distribution networks in both urban and rural areas
3. Presence of well-known brands in FMCG sector
Weaknesses:
1. Lower scope of investing in technology and achieving economies of scale, especially in
small sectors
2. Low exports levels
3. "Me-too" products, which illegally mimic the labels of the established brands. These
products narrow the scope of FMCG products in rural and semi-urban market.
Opportunities:
1. Untapped rural market
2. Rising income levels, i.e. increase in purchasing power of consumers
3. Large domestic market- a population of over one billion.
4. Export potential
5. High consumer goods spending
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Threats:
1. Removal of import restrictions resulting in replacing of domestic brands
2. Slowdown in rural demand
Tax and regulatory structure
Sector Outlook
FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs.
60,000 cores. FMCG sector generates 5% of total factory employment in the country and is
creating employment for three million people, especially in small towns and rural India.
2.2.2) PHARMACEUTICAL Sector:

Accounting for two percent of the world's pharmaceutical market, the Indian pharmaceutical
sector has an estimated market value of about US $8 billion. It's at 4th rank in terms of total
pharmaceutical production and 13th in terms of value. It is growing at an average rate of 7.2 %
and is expected to grow to US $ 12 billion by 2010.
Over the last two years the pharmaceutical market value has increased to about US $ 355
million because of the launch of new products. According to an estimate, 3900 new generic
products have been launched in the past two years. These have been by and large launched by
big brands in the pharmacy sector. And in the year 2005 Indian pharmaceutical companies
captured around 70% of the domestic market.
As in the present scenario, only a few people can afford costly drugs, which have increased
price sensitivity in the pharmaceutical market. Now the companies are trying to capture the
market by introducing high quality and low price medicines and drugs.
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SWOT Analysis of pharmacy Sector

Strengths:
1. Cost effective technology
2. Strong and well-developed manufacturing base
3. Clinical research and trials
4. Knowledge based, low- cost manpower in science & technology
5. High-quality formulations and drugs
6. High standards of purity
7. Future growth driver
8. Excellent clinical trial centers
Weaknesses:
1. Low Indian share in world pharmaceutical market (about 2%)
2. Lack of strategic planning
3. Fragmented capacities
4. Low R&D investments
5. Low healthcare expenditure
Opportunities:
1. Incredible export potential
2. Increasing health consciousness
3. New innovative therapeutic products
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4. Globalization
5. Drug delivery system management
6. Increased incomes
7. Production of generic drugs
8. Contract manufacturing
9. Clinical trials & research
10. Drug molecules
Threats:
1. Small number of discoveries
2. Competition from MNCs
3. Transformation of process patent to product patent (TRIPS)
4. Outdated Sales and marketing methods
5. Non-tariff barriers imposed by developed countries
Over view
The Indian pharmaceutical industry, which is now meeting over 95% of the country's
pharmaceutical needs, was almost non-existent before 1970. With the compound annual growth
of 19.8% the industry has grown from Rs.4 billion in 1970 to Rs.290 billion in 2003. The
pharmacy sector has shown tremendous growth over the years. About 250 Indian
pharmaceutical companies hold 70% of the market share with top players controlling about 7%
of the market share.
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2.2.3) INFRASTRUCTURE Sector:

Infrastructure is the basic physical and organizational structures needed for the operation
of a society or enterprise, or the services and facilities necessary for an economy to function.
The term typically refers to the technical structures that support a society, such as roads, water
supply, sewers, power grids, telecommunications, and so forth. Viewed functionally,
infrastructure facilitates the production of goods and services;
for example, roads enable the transport of raw materials to a factory, and also for the
distribution of finished products to markets. In some contexts, the term may also include basic
social services such as schools and hospitals. In military parlance, the term refers to the
buildings and permanent installations necessary for the support, redeployment, and operation of
military forces.
There are two types of infrastructure are available that are as below;
"Hard" and soft" infrastructure
Hard infrastructure refers to the large physical networks necessary for the functioning of a
modern industrial nation, Are as follow
1.
2.
3.
4.
5.
Transportation infrastructure
Energy infrastructure
Water management infrastructure
Communications infrastructure
Solid waste management
Soft infrastructure refers to all the institutions which are required to maintain the economic,
health and cultural/social standards of a country, such as the financial system, the education
17
system, and the health care system, the system of government and law enforcement, as well as
emergency services, are as follow
1.
2.
3.
4.
Institutional infrastructure
Industrial infrastructure
Social infrastructure
Cultural, sports and recreational infrastructure
The various factors responsible for the upswing in the India Infrastructure investments are:
The increasing demand in residential, commercial and industrial properties

Growth in hospitality or hotel industry
Development of Special Economic Zones (SEZ)
Increased living standards of people with higher disposable incomes
Development of IT and ITES industry.
The Government of India is also liberalizing by providing more funds for infrastructure
developments all across the country and relaxing the economic policies. The various acts by the
GOI in this regard are:
Indian Transfer Of Property Act
Indian Registration Act, 1908.
Indian Urban Land (Ceiling And Regulation) Act, 1976
Stamp Duty
Rent Control Acts
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Property Tax
Foreign Exchange Regulation Act, 1973
Besides the GOI interest in the realty sector other investments demanding mention are NRI
Investments. NRI investment in infrastructure segment in India have increased manifold.
Special NRI cities are being developed around, major cities in India like Noida, Bangalore,
Mumbai, Pune, Kolkata etc.
A major chunk of the Foreign Direct Investments (FDI's) presently goes into the Indian
realty sector. Steps have been taken to manage and further promote real estate investment in
India. An Indian Real Estate Investment Trust (REIT) is being formed that will facilitate fast
and easy liquidation of investments in the real estate market in India. The Indian realty market
is flooded with Initial Public Offer (IPO) by various real estate and infrastructure
development groups. This is opening further avenues for investments in real estate in India.
2.2.4) POWER Sector:

The electrical power industry provides the production and delivery of electrical power often
known as power, or electricity, in sufficient quantities to areas that need electricity through a
grid connection. The grid distributes electrical energy to customers. Electric power is generated
by central power stations or by distributed generation.
Many households and businesses need access to electricity, especially in developed nations,
the demand being scarcer in developing nations. Demand for electricity is derived from the
requirement for electricity in order to operate domestic appliances, office equipment, industrial
19
machinery and provide sufficient energy for both domestic and commercial lighting, heating,
cooking and industrial processes. Because of this aspect of the industry, it is viewed as a public
utility as infrastructure.
When India became independent in 1947, the country had a power generating capacity of
1,362 MW. Generation and distribution of electrical power was carried out primarily by private
utility companies. Notable amongst them and still in existence is Calcutta Electric. Power was
available only in a few urban centers; rural areas and villages did not have electricity.
After 1947, all new power generation, transmission and distribution in the rural sector and
the urban centers (which was not served by private utilities) came under the purview of State
and Central government agencies. State Electricity Boards (SEBs) were formed in all the states.
National Thermal Power Corporation (NTPC), National Hydro-electric Power Corporation
(NHPC) and Power Grid Corporation Limited (PGCL) were formed by the government to
assist in meeting the increasing demand for electricity throughout the country. The electricity
sector is in the 'concurrent list', meaning that both, State and Central governments participate in
the sector's development. The Ministry of Power in the Central government formulates the
policies for the power sector. The Central Electricity Authority (CEA) was established as a
statutory authority to develop a 2nd National Power Policy and also to function as a regulatory
authority. As per government guidelines, all power projects above a certain capacity have to
obtain techno-economic clearance from CEA before they can be implemented. A new Ministry
of Non-Conventional Energy Sources has also been formed to focus on renewable energy
sources to augment the generation capacity of electrical power.
The Public sector units (PSUs) provided a vital service to the nation in the postindependence era. From the few transmission and distribution networks existing at the time of
independence, in few urban centers, the PSUs have established networks covering the entire
length and breadth of the country. Besides, massive rural electrification programs have boosted
agricultural production in a big way. Today, India is self-sufficient in food grains primarily
because of this.
2.2.5) TECHNOLOGY Sector:

The Indian information technology (IT) industry has played a key role in putting India on
the global map.
The wheel was invented circa 4000 BC, and has become one of the world's most famous,
and most useful technologies. This wheel is on display in The National Museum of Iran, in
Tehran.
20
The history of technology is the history of the invention of tools and techniques, and is
similar in many ways to the history of humanity. Background knowledge has enabled people to
create new things, and conversely, many scientific endeavors have become possible through
technologies which assist humans to travel to places we could not otherwise go, and probe the
nature of the universe in more detail than our natural senses allow.
Technological artifacts are products of an economy, a force for economic growth, and a
large part of everyday life. Technological innovations affect, and are affected by, a society's
cultural
The Indian information technology sector continues to be one of the sunshine sectors of the
Indian economy showing rapid growth and promise.
According to a report prepared by McKinsey for NASSCOM called 'Perspective 2020:
Transform Business, Transform India' released in May 2009, the exports component of the
Indian industry is expected to reach US$ 175 billion in revenue by 2020. The domestic
component will contribute US$ 50 billion in revenue by 2020. Together, the export and
domestic markets are likely to bring in US$ 225 billion in revenue, as new opportunities
emerge in areas such as public sector and healthcare and as geographies including Brazil,
Russia, China and Japan opt for greater outsourcing.
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3.1)
3.2)
3.3)
3.4)
3.5)
3.6)
3.7)
OBJECTIVES OF STUDY
PROBLEMS OF STAMENT
BENEFIT OF STUDY
RESEARCH DESIGN
SAMPLING
RESEARCH TOOLS
LIMITATION OF STUDY
22
3.1) OBJECTIVE OF STUDY:

This study helps to find out the scope from where the investor may invest their
money and can get maximum return out of it.
This study helps me to understand investment in different Sector wise Mutual
Fund.
It helps me to understand how to find correlation between risks and return
associate with Secoral Mutual funds and BSE index.
To get deep knowledge in specialization subject and have practical knowledge of
it. Comparison between Theoretical knowledge obtained in BBA and to get
Experience of Business life.
23
3.2) PROBLEMS OF STATEMENT:
A study on Analysis of Sectoral Mutual Funds

(With respect of Fast Moving Consumer Goods (FMCG), Pharmaceutical,
Infrastructure, Power, and Technology)
3.3) BENEFIT OF STUDY:
To know the risks and return associated with investing in different sectoral Mutual Fund.
To ascertain the investors awareness about various different sector of investment.
To know the different investment scenario in sectoral Mutual funds scheme.
To know the objective behind their investment. Either for short period of time or for
perpetual.
It also help to find out the Co-relation coefficient associated with it.
This study helps to an investor to make the right investment in right sectoral Mutual
Funds.
This study also helps to find out the volatility with respect to BSE index return.
24
3.4) RESEARCH DESIGN:

According to Kerlinger,
Research design is the plan, structure and strategy of investigation conceived so as to
obtain answers to research question and to control the variance.
The definition consists of three important terms Plan, structure and strategy. Plan is an
outline of the research scheme on which the researcher is to work. Structure of the research is
more specific outline or the scheme and strategy shows how the research will be carried out,
specifying the methods to be used in the collection and analyses of data.
Types of research design:

1) Exploratory Research
2) Descriptive design
3) Causal design
Exploratory Research:Exploratory Research is considered suitable for the topics, it would try to discover a
relationship between return of sectoral mutual funds with respect to BSE index return.
E.g. in a business where sales are reducing since last few months, the management may
conduct a study to find out what could be the possible explanations sales might have declined
on account of number of factors like deterioration in the quality of product, increased
competition,
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3.5) SAMPLING:
Sampling is the process of drawing a sample from a large population is called
sampling.
Probability sampling.
Non probability sampling
Population:
All the sectoral mutual funds in India.
Sample:
Drawing a sample unit from the entire population is called sample.
I have selected five sectors of mutual funds those are as mention below;
1)
2)
3)
4)
5)
FAST MOVING CONSUMER GOODS (FMCG) Sector

PHARMACEUTICAL Sector
INFRASTRUCTURE Sector
POWER Sector
TECHNOLOGY Sector
Sampling plan:
Non probability sampling plan

26
Rule of thumb approach
3.6) RESEARCH TOOLS:
Appropriate Statistical tools like Correlation Co-efficient (r), Standard deviation (S.D)
and Beta () will be used to analyze the data to quantify analyze the relationship
between Mutual funds return and BSE index return.

Standard deviation (S.D) is used to analyze volatility.
Beta () is used to analyze the risks and return associated with the particular
investment.
27
3.7) LIMITATION OF STUDY:

As the data available to me has been taken from the secondary sources (like internet). It
is not sure that collected data are accurate and complete.
Because of the time limitation, it may be possible that some important data are left out.
The data which are very useful for the analysis are lacking in this Project or contract that
are still in negotiation or any kind of deal which is in-process. Here that is ignored.
Due to lack of experience and knowledge of the sectoral mutual funds it cant be said
that the projection has been made totally correct and accurate.
As the time available was very less, so analysis has been done only of five sectors. This
may led to misinterpretation of the industry.
Todays stock market is totally running on the investors perception so the conclusion
derived on the basis of analysis would not viable in long run.
28
29
4.1)
4.2)
4.3)
4.4)
4.5)
4.6)
4.7)
4.8)
INTRODUCTION OF MUTUAL FUNDS

HISTORY OF MUTUAL FUNDS IN INDIA
PHASES OF MUTUAL FUNDS IN INDIA
WHAT IS MUTUAL FUND?
STRUCTURE OF MUTUAL FUNDS
TYPES OF MUTUAL FUNDS
ADVANTAGES OF MUTUAL FUNDS
FREQUANTILY USED TERMS IN MUTUAL FUNDS
4.1) INTRODUCTION OF MUTUAL FUND

common financial goal. The money thus collected is invested by the fund manager in different
types of securities depending upon the objective of the scheme. These could range from shares
to debentures to money market instruments. The income earned through these investments and
the capital appreciation realized by the scheme are shared by its unit holders in proportion to
the number of units owned by them (pro rata). Thus a Mutual Fund is the most suitable
investment for the common man as it offers an opportunity to invest in a diversified,
professionally managed portfolio at a relatively low cost. Anybody with an investible surplus of
30
as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a
defined investment objective and strategy.
A mutual fund is the ideal investment vehicle for todays complex and modern financial
scenario. Markets for equity shares, bonds and other fixed income instruments, real estate,
derivatives and other assets have become mature and information driven. Price changes in these
assets are driven by global events occurring in faraway places. A typical individual is unlikely
to have the knowledge, skills, inclination and time to keep track of events, understand their
implications and act speedily. An individual also finds it difficult to keep track of ownership of
his assets, investments, brokerage dues and bank transactions etc.
A mutual fund is the answer to all these situations. It appoints professionally qualified and
experienced staff that manages each of these functions on a full time basis. The large pool of
money collected in the fund allows it to hire such staff at a very low cost to each investor. In
effect, the mutual fund vehicle exploits economies of scale in all three areas - research,
investments and transaction processing. While the concept of individuals coming together to
invest money collectively is not new, the mutual fund in its present form is a 20th century
phenomenon. In fact, mutual funds gained popularity only after the Second World War.
Globally, there are thousands of firms offering tens of thousands of mutual funds with different
investment objectives. Today, mutual funds collectively manage almost as much as or more
money as compared to banks.
A draft offer document is to be prepared at the time of launching the fund. Typically, it pre
specifies the investment objectives of the fund, the risk associated, the costs involved in the
31
process and the broad rules for entry into and exit from the fund and other areas of operation. In
India, as in most countries, these sponsors need approval from a regulator, SEBI (Securities
exchange Board of India) in our case. SEBI looks at track records of the sponsor and its
financial strength in granting approval to the fund for commencing operations.
A sponsor then hires an asset management company to invest the funds according to the
investment objective. It also hires another entity to be the custodian of the assets of the fund
and perhaps a third one to handle registry work for the unit holders (subscribers) of the fund.
In the Indian context, the sponsors promote the Asset Management Company also, in which
it holds a majority stake. In many cases a sponsor can hold a 100% stake in the Asset
Management Company (AMC). E.g. Birla Global Finance is the sponsor of the Birla Sun Life
Asset Management Company Ltd., which has floated different mutual funds schemes and also
acts as an asset manager for the funds collected under the scheme.
DEFINITION OF MUTUAL FUND?

Mutual funds are investment companies whose job is to handle their investors money
by reinvesting it into stocks, bonds, government securities or a combination of two things
common financial goal. The money thus collected is then invested in capital market instruments
32
such as shares, debentures and other securities. The income earned through these investments
and the capital appreciation realized is shared by its unit holders in proportion to the number of
units owned by them. Thus a Mutual Fund is the most suitable investment for the common man
as it offers an opportunity to invest in a diversified, professionally managed basket of securities
at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:
Mutual Fund Operation Flow Chart
4.2) HISTORY OF MUTUAL FUNDS IN INDIA:
33
The end of millennium marks 36 years of existence of mutual funds in this country. The ride
through these 36 years is not been smooth. Investor opinion is still divided. While some are for
mutual funds others are against it.
UTI commenced its operations from July 1964. The impetus for establishing a formal
institution came from the desire to increase the propensity of the middle and lower groups to
save and to invest. UTI came into existence during a period marked by great political and
economic uncertainty in India. With war on the borders and economic turmoil that depressed
the financial market, entrepreneurs were hesitant to enter the capital market.
The already existing companies found it difficult to raise fresh capital, as investors did not
respond adequately to new issues. Earnest efforts were required to canalize savings of the
community into productive uses in order to speed up the process of industrial growth.
The Finance Minister, T.T. Krishnamachari set up the idea of a unit trust that would be
"open to any person or institution to purchase the units offered by the trust. However, this
institution as we see it, is intended to cater to the needs of individual investors, and even among
them as far as possible, to those whose means are small"
His ideas took the form of the Unit Trust of India, an intermediary that would help fulfill the
twin objectives of mobilizing retail savings and investing those savings in the capital market
and passing on the benefits so accrued to the small investors.
UTI commenced its operations from July 1964 "with a view to encouraging savings and
investment and participation in the income, profits and gains accruing to the Corporation from
the acquisition, holding, management and disposal of securities." Different provisions of the
UTI Act laid down the structure of management, scope of business, powers and functions of the
Trust as well as accounting, disclosures and regulatory requirements for the Trust.
34
One thing is certain - the fund industry is here to stay. The industry was one-entity show till
1986 when the UTI monopoly was broken when SBI and Canbank mutual fund entered the
area. This was followed by the entry of others like BOI, LIC, GIC, etc. sponsored by public
sector banks. Starting with an asset base of Rs 0.25 in 1964 the industry has grown at a
compounded average growth rate of 26.34% to its current size of Rs 1130. The period 19861993 can be termed as the period of public sector mutual funds (PMFs). From one player in
1985 the number increased to 8 in 1993. The party did not last long. When the private sector
made its debate in 1993-94, the stock market was booming.
The opening up of the asset management business to private sector in 1993 saw international
players like Morgan Stanley, Jardine Fleming, JP Morgan, George Soros and Capital
International along with the period of 1994-96 was one of the worst in the history of Indian
Mutual Funds.
35
4.3) PHASES OF MUTUAL FUND IN INDIA(1964-2000)
The mutual fund industry can be broadly put into four phases according to the development
of the sector. Each phase is briefly described as under.
FIRST PHASE - 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act
of Parliament. It was set up by the Reserve Bank of India and functioned under the
Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was
de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over
the regulatory and administrative control in place of RBI. The first scheme launched by
UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 cores of assets under
management.
SECOND PHASE - 1987-1993 (ENTRY OF PUBLIC SECTOR FUNDS) Entry of

non-UTI mutual funds. SBI Mutual Fund was the first followed by Canbank Mutual
Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund
(Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC in 1989
and GIC in 1990. The end of 1993 marked Rs.47,004 as assets under management.
THIRD PHASE - 1993-2003 (ENTRY OF PRIVATE SECTOR FUNDS) with the

entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the
year in which the first Mutual Fund Regulations came into being, under which all
mutual funds, except UTI were to be registered and governed. The erstwhile Kothari
36
Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund
registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the
SEBI (Mutual Fund) Regulations 1996.The number of mutual fund houses went on
increasing, with many foreign mutual funds setting up funds in India and also the
industry has witnessed several mergers and acquisitions. As at the end of January 2003,
there were 33 mutual funds with total assets of Rs. 1,21,805 cores. The Unit Trust of
India with Rs.44,541 cores of assets under management was way ahead of other mutual
funds.
FOURTH PHASE - SINCE FEBRUARY 2003 This phase had bitter experience for
UTI. It was bifurcated into two separate entities. One is the Specified Undertaking of the
Unit Trust of India with AUM of Rs.29, 835 cores (as on January 2003). The Specified
Undertaking of Unit Trust of India, functioning under an administrator and under the
rules framed by Government of India and does not come under the purview of the
Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI,
PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund
Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more
than Rs.76, 000 cores of AUM and with the setting up of a UTI Mutual Fund,
conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place
among different private sector funds, the mutual fund industry has entered its current
phase of consolidation and growth. As at the end of September, 2004, there were 29
funds, which manage assets of Rs.153108 cores under 421 schemes.
FIFTH PHASE V. GROWTH AND CONSOLIDATION - 2004 ONWARDS The

industry has also witnessed several mergers and acquisitions recently, examples of
which are acquisition of schemes of Alliance Mutual Fund by Birla Sun Life, Sun F&C
Mutual Fund and PNB Mutual Fund by Principal Mutual Fund. Simultaneously, more
international mutual fund players have entered India like Fidelity, Franklin Templeton
37
Mutual Fund etc. There were 29 funds as at the end of March 2006. This is a continuing
phase of growth of the industry through consolidation and entry of new international and
private sector players.
4.4) WHAT IS MUTUAL FUND?
Investors
Invest/pool their money

Mutual Fund Co.
Profit/Loss from
portfolio of
investments
(Pool of money)
Investing a number of
stocks/bonds
Market
(Fluctuates)
38
Profit/Loss from
individual of
investments
A Mutual Fund is a common pool of money in to which investors with common investment
objective place their contributions that are to be invested in accordance with the stated
investment objective of the scheme. The investment manager would invest the money collected
from the investor in to assets that are defined/ permitted by the stated objective of the scheme.
For example, an equity fund would invest equity and equity related instruments and a debt fund
would invest in bonds, debentures, gilts etc.
4.5) STRUCTURE OF MUTUAL FUND
SEBI
Truste
Spons
AMC
Operati
Fund
Market/Sa
Mutual
Market/S
Scheme
Distribu
39
Investo
1) Sponsor:
Sponsor is the person who acting alone or in combination with another body corporate
establishes a mutual fund. Sponsor must contribute at least 40% of the net worth of the
Investment Managed and meet the eligibility criteria prescribed under the Securities and
Exchange Board of India (Mutual Funds) Regulations, 1996.The Sponsor is not responsible or
liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial
contribution made by it towards setting up of the Mutual Fund.
2) Trust:
The Sponsor constitutes the Mutual Fund as a trust in accordance with the provisions of the
Indian Trusts Act, 1882. The trust deed is registered under the Indian Registration Act, 1908.
3) Trustee:
Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals).
The main responsibility of the Trustee is to safeguard the interest of the unit holders and inter
alia ensure that the AMC functions in the interest of investors and in accordance with the
Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of
the Trust Deed and the Offer Documents of the respective Schemes. At least 2/3rd directors of
the Trustee are independent directors who are not associated with the Sponsor in any manner.
40
4) Asset Management Company (AMC):

The Trustee as the Investment Manager of the Mutual Fund appoints the AMC. The AMC is
required to be approved by the Securities and Exchange Board of India (SEBI) to act as an
asset management company of the Mutual Fund. At least 50% of the directors of the AMC are
independent directors who are not associated with the Sponsor in any manner. The AMC must
have a net worth of at least 10 core at all times.
5) Registrar and Transfer Agent:

The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to
the Mutual Fund. The Registrar processes the application form, redemption requests and
dispatches account statements to the unit holders. The Registrar and Transfer agent also handles
communications with investors and updates investor records.
4.6) TYPES OF MUTUAL FUNDS

In the investment market, one can find a variety of investors with different needs,
objectives and risk talking capacities.
Mutual Fund
On the basis of
Execution and
Operation
Close
-
Open
-
On the basis of yield

and investment
pattern
Income Fund
41
Growth Fund
Balance Fund
Specialized Fund
Money Market
Taxation Fund
A. On the basis of Execution and Operation
1) Close-ended Funds:
The unit capital of a close-ended product is fixed as it makes a one-time sale of fixed
number of units. These schemes are launched with an initial public offer (IPO) with a stated
maturity period after which the units are fully redeemed at NAV linked prices. In the interim,
investors can buy or sell units on the stock exchanges where they are listed. Unlike open-ended
schemes, the unit capital in closed-ended schemes usually remains unchanged. After an initial
closed period, the scheme may offer direct repurchase facility to the investors. Closed-ended
schemes are usually more illiquid as compared to open-ended schemes and hence trade at a
42
discount to the NAV. This discount tends towards the NAV closer to the maturity date of the
scheme.
Features:
The period and/or the target amount of the fund are definite and fixed beforehand.
Once the period is over and/or the target is reached, the door is closed for the investors.
They cannot purchase any more units.
These units are publicly traded through stock exchange and generally, there is no
repurchase facility by the fund.
The main objective of this fund is capital appreciation.
The whole fund is available for the entire duration of the scheme and there will not be
any redemption demands before its maturity.
At the time of redemption, the entire investment pertaining to a closed-end scheme is

liquidated and the proceeds are distributed among the unit holders.
2) Open-ended Funds:
An open-end fund is one that is available for subscription all through the year. These do not
have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV")
related prices. The key feature of open-end schemes is liquidity.
Features:
43
There is complete flexibility with regard to one's investment or disinvestment.
These units are not publicly traded but the Fund is ready to repurchase them and resell
them at any time.
The investor is offered install liquidity in the sense that the unit can be sold on any
working day to the Fund.
The main objective of this fund is income generation. The inventors get dividend, right
or bonuses as rewards for their investment.
Generally, the listed prices are close to their Net Asset Value. The Fund fixes a different
price for their purchases and sales.
B. On the basis of yield and investment pattern
1) Income Funds:
44
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 and
Government securities. Income Funds are ideal for capital stability and regular income.
Features:
The investor is assured of regular income at periodic intervals, says Half- yearly or years
and so on.
The main objective of this type fund is to declare regular dividends and not capital
appreciation.
The pattern of investment is oriented towards high and fixed income yielding securities
like debentures, bonds etc.
This is best suited to the old and retired people who may not have any regular income.
It concerns itself with short run gains only.
2) Growth Funds:
The aim of growth funds is to provide capital appreciation over the medium to long- term.
Such schemes normally invest a majority of their corpus in equities. It has been proven that
returns from stocks, have outperformed most other kind of investments held over the long term.
Growth schemes are ideal for investors having a long-term outlook seeking growth over a
period of time.
Features:
45
The Growth oriented fund aims at meeting the investors' need for capital appreciation.
The Investment strategy therefore, conforms to the Fund objective by investing the fund
predominantly on equities with high growth potential.
The Fund tries to get capital appreciation by taking much risk and investing on risk
bearing equities and high growth equity shares.
The Fund may declare dividend, but its principal objective is only capital appreciation.
This is best suited to salaried and business people who have high risk bearing capacity
and ability to defer liquidity. They can accumulate wealth for future needs.
3) Balance Funds:
The aim of balanced funds is to provide both growth and regular income. Such schemes
periodically distribute a part of their earning and invest both in equities and fixed income
securities in the proportion indicated in their offer documents. In a rising stock market, the
NAV of these schemes may not normally keep pace, or fall equally when the market falls.
These are ideal for investors looking for a combination of income and moderate growth.
4) Specialized Funds:
1) Index schemes:
The primary purpose of an Index is to serve as a measure of the performance of the market
as a whole, or a specific sector of the market. An Index also serves as a relevant benchmark to
evaluate the performance of mutual funds. Some investors are interested in investing in the
market in general rather than investing in any specific fund. Such investors are happy to receive
the returns posted by the markets. As it is not practical to invest in each and every stock in the
market in proportion to its size, these investors are comfortable investing in a fund that they
46
believe is a good representative of the entire market. Index Funds are launched and managed
for such investors. An example to such a fund is the HDFC Index Fund.
5) Tax Saving schemes:

Investors (individuals and Hindu Undivided Families HUFs) are being encouraged to
invest in equity markets through Equity Linked Savings Scheme (ELSS) by offering them a
tax rebate. Units purchased cannot be assigned / transferred/ pledged / redeemed / switched
out until completion of 3 years from the date of allotment of the respective Units.
6) Money Market Funds:

The aim of money market funds is to provide easy liquidity, preservation of capital and
moderate income. These schemes generally invest in safer short-term instruments such as
treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on
these schemes may fluctuate depending upon the interest rates prevailing in the market. These
are ideal for corporate and individual investors as a means to park their surplus funds for short
periods.
47
4.7) Advantages of Mutual Fund:Mutual funds serve as a link between the saving public and the capital markets. They
mobilize savings from the investors and bring them to borrowers in the capital markets. Today
mutual funds are fast emerging as the favorite investment vehicle because of the many
advantages they have over other forms and avenues of investing. The major advantages offered
by mutual funds to all investors are:
1. Professional Management:Mutual Funds provide the services of experienced and skilled professionals, backed by a
dedicated investment research team that analyses the performance and prospects of
companies and selects suitable investments to achieve the objectives of the scheme.
2. Diversification:Mutual Funds invest in a number of companies across a broad cross-section of

industries and sectors. This diversification reduces the risk because seldom do all stocks
decline at the same time and in the same proportion. You achieve this diversification
through a Mutual Fund with far less money than you can do on your own.
3. Convenient Administration:Investing in a Mutual Fund reduces paperwork and helps you avoid many problems
such as bad deliveries, delayed payments and follow up with brokers and companies.
Mutual Funds save your time and make investing easy and convenient.
4. Return Potential:Over a medium to long-term, Mutual Funds have the potential to provide a higher return
as they invest in a diversified basket of selected securities.
48
5. Low Cost:Mutual Funds are a relatively less expensive way to invest compared to directly
investing in the capital markets because the benefits of scale in brokerage, custodial and
other fees translate into lower costs for investors.
6. Liquidity:In open-end schemes, the investor gets the money back promptly at net asset value
related prices from the Mutual Fund. In closed-end schemes, the units can be sold on a
stock exchange at the prevailing market price or the investor can avail of the facility of
direct repurchase at NAV related prices by the Mutual Fund.
7. Transparency:You get regular information on the value of your investment in addition to disclosure on
the specific investments made by your scheme, the proportion invested in each class of
assets and the fund manager's investment strategy and outlook.
8. Flexibility:Through features such as regular investment plans, regular withdrawal plans and
dividend reinvestment plans, you can systematically invest or withdraw funds according to
your needs and convenience.
9. Affordability:Investors individually may lack sufficient funds to invest in high-grade stock. A mutual
fund because of its large corpus allows even a small investor to take the benefit of its
investment strategy.
10. Choice of schemes:Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.
11. Well Regulated:49
All Mutual Funds are registered with SEBI and they function within the provision of
strict regulations designed to protect the interests of investors. The operations of Mutual
Funds are regularly monitored by SEBI.
4.8)
FREQUENTLY USED TERMS
1) Net Asset Value (NAV):

Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per
unit NAV is the net asset value of the scheme divided by the number of units outstanding on the
Valuation Date.
The NAV Calculated as following way: -
NAV
V alue of Investment + Receivables+ Acctured Income+ Other Current AssetsLiabilities Accured Expensess
Number of the scheme units outstanding
It also be calculated as: - Unit Capital + Reserves

The dividend paid on Units under the Dividend Plan and distribution tax (if applicable, as
per the prevalent tax provisions) on the amount of Dividend distributed shall be deducted in
computing the NAV of the Units under the Dividend Plan each time Dividend is declared and
till it is distributed. Consequently once the Dividend is distributed under the Dividend Plan, the
50
NAV of the Units under the Dividend Plan will always remain lower than the NAV of the Units
under the Growth Plan. The income earned / accrued and profits realized attributable to the
Units under the Growth Plan shall remain invested and shall be deemed to have been invested
in the Growth Plan to the exclusiveness of the Units under the Dividend Plan, and would be
reflected in the NAV of the Units under the Growth Plan.
Net Asset Value shall be calculated as of the close of every Business Day. Calculation of the
Schemes Net Asset Value will be subject to such rules or regulations that SEBI may issue from
time to time and will be subject to audit on an annual basis. The computation and disclosure of
the Net Asset Value and the repurchase price shall be in conformance with SEBI (MF)
Regulations, 1996.
Example:
A scheme with 1,000 units has the following items in its balance sheet.
Unit capital Rs.10,000/-, Investment at market value Rs.25,000/-, Other assets Rs.35,000/-,
Other liabilities Rs.2,000/-, Issue expenses not written off Rs.500/- & Reserves Rs.17,000/-.
What would be its NAV?
A good starting point would be to put down the numbers in a tabular form to ensure that all
items are treated properly: -
Liabilities
Unit Capital
Rs.
10,000/-
Assets
Investment (M.V)
51
Rs.
25,000/-
Reserve
Other Liabilities
Total
17,000/2,000/29,000/-
NAV =
Other assets
Issue Exp. Not W/o
Total
3,500/500/29,000/-
Total AssetsLiabilities other than
unit holders
Number of units
290002000
1000
27
2) Sale Price
Is the price you pay when you invest in a scheme. Also called Offer Price. It may include a
sales load.
3) Repurchase Price
Is the price at which a close-ended scheme repurchases its units and it may include a backend load. This is also called Bid Price.
4) Redemption Price
Is the price at which open-ended schemes repurchase their units and close-ended schemes
redeem their units on maturity. Such prices are NAV related.
52
5) Sales Load
Is a charge collected by a scheme when it sells the units. Also called, Front-end load.
Schemes that do not charge a load are called No Load schemes.
6) Repurchase or Back-end Load

Is a charge collected by a scheme when it buys back the units from the unit holders.
53
54
5.1) PERFORMANCE OF MUTUAL FUNDS UNDER FMCG SECTOR

Franklin FMCG fund (G)
Fund Type
Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Entry Load
Exit Load
Load Comments
Open-Ended
Growth
77.59 (Dec-31-2010)
Rs.5000
N.A.
N.A.
Mar 30, 1999
N.A.
Prashant Kothari / Mrinal Singh
N.A.
N.A.
1.00%
Exit Load 1% if units are redeemed / switched-out for a period of
up to 1 year from the date of allotment.
Quarterly NAV (Net Assets value)

Year
2010
2009
2008
2007
2006
Qtr 1
4.6
-0.7
-12
-7.1
21.9
Qtr 2
Qtr 3
55
15.6
12.3
23.4
13.9
-8.8
4.9
9.9
10.5
-12.9
7.2
Qtr 4
-0.8
12.2
-11.8
11.3
-1.5
Annual
31.7
48.8
-27.7
24.6
14.7
Quarter
Q1
Q2
Q3
Q4

X
(X X )
XY
X2
Y2
Security Sensex
6.2887
21.9
6
137.724 39.5485 479.61
3.3256
-12.9
-1.6216 20.9186 2.62959 166.41
-4.58476
5.5386
7.2
8
39.8785 30.677
51.84
2.57552
-1.5
1.6468 -2.4702 2.71195
2.25
-1.31636
2
2
( X X )
Y
X
XY
X
Y
Y
14.7
11.8526 196.051
75.567
700.11
( X X )2
11.05962
21.02002
6.633303
1.732804
2
( X X )
0
40.4457
moneycontro.com/mutual fund/detail view)
For the
year 2006
( Xi X )2
S . D=
X
2.96316
(Source:
S.D
3.1799
xi
X =
n
n x 2
n xy( x )( y )
=
3.7703
40.4457
4
s . d=3.1799
0.9433
11 . 8526
4
2.96316
11.8526 2
4 (75.567)
4(196.051)(11.8526)(14.7)
56
609.969
161.783
=3.7703

x
y
2
n x2 BETA CO-RELATION
YEAR
RETURN STANDARD
DEVIATION
()
COEFFICIENT
n (S.D)
xy( x)( y )
(r)
r=
2010
31.7000
1.7106 2 1.2416
0.3305
11.8526
2009
48.8000
5.8512
1.2553
0.8557
2008
-27.7000
0.9175
42.9576
(75.567) 2.1541
2007
24.6000
3.0405
2.4670
0.9785
4(196.051)(11.8526)(14.7)
2006
14.7000
3.1798
3.7703
0.9433
AVERAGE 18.4200
3.3479
2.1777
0.8051
609.969
646.61
r=0.9433
Interpretation:57
Here, Franklin FMCG fund (G) has an average return of 18.42 which is good for the view
point of investment.
Standard Deviation (S.D) is higher in the year 2009 has 5.8512. And an average is 3.3479
which mean it is highly volatile with comparison of BSE index.
Beta () is higher in the year 2006 has 3.7703. And an average is 2.1777 that are more than
1 which mean risks and return is higher.
Co-relation Co-efficient is higher in the year 2007 has 0.9785. And an average is 0.8051
which is near to 1 that mean the positive relation between Mutual funds return and BSE index
return.
ICICI Pru FMCF Fund (D)
Fund
Open-Ended
Type
Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Entry Load
Exit Load
Load Comments
Dividend
77.59 (Dec-31-2010)
Rs.5000
Rs.1.20 (Feb-11-2010)
N.A.
Mar 30, 1999
N.A.
Prashant Kothari / Mrinal Singh
N.A.
N.A.
1.00%
Exit Load 1% if units are redeemed / switched-out for a period
of up to 1 year from the date of allotment.
Year
2010
2009
2008
Qtr 1
-4.1
-8.2
-24.4
Qtr 2
16
20.1
-12.5
Qtr 3
12.3
19
-12.4
58
Qtr 4
-4.1
12.1
-16.3
Annual
20.1
43
-65.6

2007
2006
-8.6
9.8
10.9
-17.2
4.1
23.3
29.7
16.6
4.2
13.4
(Source: moneycontro.com/mutual fund/detail view)
YEAR
RETUR
N
STANDAR
D
DEVIATIO
N
(S.D)
2010
20.1000
1.7106
2009
43.0000
5.8512
2008
-65.6000
2.9576
2007
29.7000
3.0405
2006
AVERAG
E
13.4000
3.1798
8.1200
3.3479
CO-RELATION
BETA COEFFICIENT
()
(r)
2.282
7
0.4236
1.321
3
0.6804
1.233
2
0.7475
3.002
8
0.7917
3.675
9
0.9239
2.303
2
0.7134
SBI Magnum FMCF Fund
Fund
Type
Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Open-Ended
Dividend
32.92 (Jan-31-2011)
Rs.2000
Rs.6.00 (Mar-03-2006)
N.A.
Jul 31, 1999
BSE FMCG Sector
59

Fund Manager
Notes
Notes
Entry Load
Exit Load
Load Comments
Sohini Andani
N.A.
N.A.
N.A.
1.00%
Exit Load 1% if units are redeemed / switched-out within 1 year
from the date of allotment.

Year
2010
2009
2008
2007
2006
Qtr 1
9.2
2.4
-19.7
-9.7
16.5
Qtr 2
14.3
19.8
-6.3
8.6
-12.4
Qtr 3
17.2
18.4
0.9
9.3
2.7
Qtr 4
-1.1
-0.2
-10.4
19.6
-1
Annual
39.6
40.4
-35.5
27.8
5.8
(Source:
moneycontro.com/mutual fund/detail view)
YEAR
2010
2009
2008
2007
2006
AVERAGE
STANDARD
DEVIATION
RETURN
(S.D)
39.6000
1.7106
40.4000
5.8512
-35.5000
2.9576
27.8000
3.0405
5.8000
3.1798
15.6200
3.3479
SCHEME
Franklin FMCG Fund (G)
BETA
()
2.1422
1.3249
2.2353
3.2376
2.9668
2.3814
CO-RELATION
COEFFICIENT
(r)
0.5260
0.8556
0.8881
0.9328
0.9143
0.8233
AVERAGE
RETURN
STANDARD
DEVIATION
(S.D)
BETA
()
CO-RELATION
COEFFICIENT
(r)
18.4200
3.3479
2.1777
0.8051
60

ICICI Pru FMCG Fund (D)
SBI Magnum FMCG Fund
8.1200
15.6200
3.3479
3.3479
2.3032
2.3814
0.7134
0.8233
AVERAGE
14.0533
3.3479
2.2874
0.7806
PERFORMANCE OF MUTUAL FUNDS UNDER FMCG SECTOR
Interpretation:Researcher has taken an average return, Standard deviation, Beta and Co-relation Coefficient of FMCG Sectors funds to know the risks and return associate with it.
Here, Standard Deviation is 3.3479 which mean the FMCG funds have a higher volatile
with comparison of BSE index return.
Average Beta of FMCG funds is 2.2874. Which is more than 1 that is risks is higher.
Average Co-relation Coefficient of FMCG funds are 0. 7806. This is near to 1 which means
that positive correlation between return of FMCG funds and BSE index.
5.2) PERFORMANCE OF MUTUAL FUNDS UNDER

PHARMACEUTICAL SECTOR
61
Reliance PHARMA Fund (G)

Fund
Type
Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Entry Load
Exit Load
Load Comments
Open-Ended
Growth
543.71 (Dec-31-2010)
Rs.5000
N.A.
N.A.
May 26, 2004
BSE Healthcare Sector
Sailesh Raj Bhan
N.A.
N.A.
1.00%
Exit load - 1% if redeemed/switched out on or before
completion of 1 yrs from the date of allotment.
Year
2010
2009
2008
2007
2006
YEAR
2010
2009
2008
2007
2006
AVERAG
E
Qtr 1
11
-5.4
-29.1
-4.3
13.6
Qtr 2
8.7
33
0.6
31.2
-23.2
Qtr 3
Qtr 4 Annual
0.9
6.6
27.2
40.9
-0.2
68.3
3.4
-10.6
-35.7
-2.7
18.5
42.7
21.9
4.9
17.2
RETUR
N
27.2000
68.3000
-35.7000
42.7000
17.2000
STANDAR
D
DEVIATIO
N
(S.D)
1.7106
3.0405
2.9576
5.8512
3.1798 62
BETA
()
-2.0748
2.5759
3.5272
1.9242
4.9832
CO-RELATION
COEFFICIENT
(r)
-0.9477
0.7478
0.8168
0.3932
0.9334
23.9400
3.3479
2.1871
0.3887
Franklin PHARMA fund (G)
Fund
Type
Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Entry Load
Exit Load
Load Comments
Open-Ended
Growth
152.53 (Jan-31-2011)
Rs.5000
N.A.
N.A.
Mar 31, 1999
N.A.
Anand Radhakrishnan
N.A.
N.A.
1.00%

Year
2010
2009
2008
2007
2006
Qtr 1
13
-0.8
-13.3
-1.9
17
Qtr 2
7.3
37.5
4.8
11.9
-21.6
Qtr 3
3.9
31.6
1.2
-11.8
14.9
Qtr 4
6.1
19.7
-20.8
10
6.7
Annual
30.3
88
-28.1
8.2
17
63

STANDARD
DEVIATION
YEAR
RETURN
(S.D)
2010
30.3000
1.7106
2009
88.0000
5.8512
2008
-28.1000
2.9576
2007
8.2000
3.0405
2006
17.0000
3.1798
AVERAGE 23.0800
3.3479
BETA
()
-1.3665
2.0159
3.0312
0.2520
4.5770
1.7019
CO-RELATION
COEFFICIENT
(r)
-0.6955
0.8056
0.8581
0.0799
0.9443
0.3985
SBI Magnum PHARMA Fund (D)
Fund
Type
Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Entry Load
Exit Load
Load Comments
Open-Ended
Dividend
38.28 (Jan-31-2011)
Rs.2000
Rs.3.90 (Dec-31-2004)
N.A.
Jul 31, 1999
BSE Healthcare Sector
Sohini Andani
N.A.
N.A.
1.00%

Year
2010
2009
2008
2007
2006
Qtr 1
4.8
-11.1
-27
-7.2
10
Qtr 2
Qtr 3
9.8
-0.3
43.8
26.2
6.7 64 -10.5
12.9
-9.7
-18
14.9
Qtr 4
9.5
-0.2
-27.8
11.7
4.1
Annual
23.8
58.7
-58.6
7.7
11
YEAR
2010
2009
2008
2007
2006
AVERAG
E
RETUR
N
STANDAR
D
DEVIATIO
N
(S.D)
BETA
()
CO-RELATION
COEFFICIENT
(r)
23.8000
58.7000
-58.6000
7.7000
11.0000
1.7106
3.0405
2.9576
3.0405
3.1798
-2.0140
3.4990
3.2978
1.2340
3.6780
-0.8367
0.9477
0.6903
0.3600
0.9300
8.5200
2.7858
1.9390
0.4183
PHARMA Fund (G)
Fund
Type
Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Entry Load
Exit Load
Load Comments
Open-Ended
Growth
87.94 (Dec-31-2010)
Rs.5000
N.A.
N.A.
Jun 26, 1999
N.A.
Lalit Nambiar / Anoop Bhaskar
N.A.
N.A.
1.00%
Exit Load 1% if redeemed within 1 Year from the date of
65
UTI

allotment.
Year
2010
2009
2008
2007
2006
YEAR
2010
2009
2008
2007
2006
AVERAG
E
Qtr 1
11.8
-1.3
-15.5
-4.4
14.1
Qtr 2
8.9
18.2
9.8
13.4
-22.2
Qtr 3
Qtr 4 Annual
1.4
9.9
32
25.1
-0.2
41.8
-0.4
-18.4
-24.5
-6.5
-6.5
-4
13.5
4.8
10.2
RETUR
N
32.0000
41.8000
-24.5000
-4.0000
10.2000
STANDAR
D
DEVIATIO
N
(S.D)
1.7106
5.8512
2.9576
3.0405
3.1798
BETA
()
-2.2402
1.3672
2.9924
-0.0476
4.3793
CO-RELATION
COEFFICIENT
(r)
-0.9701
0.6975
0.7726
-0.0173
0.9437
11.1000
3.3479
1.2902
0.2853
PERFORMANCE OF MUTUAL FUNDS UNDER PHARMA SECTOR
SCHEME
AVERAGE
RETURN
STANDARD
DEVIATION
(S.D)
66
BETA
()
CO-RELATION
COEFFICIENT
(r)
Franklin Pharma Fund (G)

Reliance Pharma Fund (G)
SBI Magnum Pharma Fund (D)
UTI Pharma & Healthcare
Fund (G)
23.0800
23.9400
8.5200
11.1000
3.3479
3.3479
2.7858
3.3479
1.7019
2.1871
1.9390
1.2902
0.3985
0.3887
0.4183
0.2853
AVERAGE
16.6600
3.2074
1.7796
0.3727
Interpretation:Researcher has taken an average of Pharmaceutical Sectors funds to know the risks and
return associate with it.
Here, Average Standard Deviation is 3.2074 which mean the Pharmaceutical funds have a
higher volatile with comparison of BSE index return.
Average Beta of Pharmaceutical funds 1.7796. Which is more than 1 that is risks is higher.
Average Co-relation Coefficient of funds is 0. 3727. This is near to 1 which means that
positive correlation between return of Pharmaceutical funds and BSE index.
5.3) PERFORMANCE OF MUTUAL FUNDS UNDER

INFRASTRUCTURE SECTOR
L&T INFRASTRUCTURE Fund (G)
67
Fund
Type
Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Entry Load
Exit Load
Load Comments
Open-Ended
Growth
36.76 (Jan-31-2011)
Rs.5000
N.A.
N.A.
Sep 06, 2007
S&P CNX Nifty
Bajrang Kumar Bafna
L&T Infrastructure Fund, a close ended scheme has been
converted into an open ended equity scheme with effect from
September 27, 2010.
N.A.
1.00%
Exit load of 1% if redeemed within 1 year from the date of
allotment.
Year
2010
2009
2008
Qtr 1
0.1
-10.3
-32.8
Qtr 2
0.3
63.7
-17.1
Qtr 3
Qtr 4 Annual
9.1
-5.5
4
11.6
-2.5
62
1.9
-31.9
-79.9
STANDARD
DEVIATION
YEAR
RETURN
(S.D)
2010
4.0000
1.7106
2009
62.5000
5.8512
2008
-79.9000
2.9576
AVERAGE
-4.4667
3.5064
68
BETA
()
2.5705
4.8869
4.7156
4.0577
CO-RELATION
COEFFICIENT
(r)
0.8417
0.9913
0.9902
0.9411
Bharti AXA Focused INFRASTRUCTURE Fund (G)
Fund
Type
Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Entry Load
Exit Load
Load Comments
Open-Ended
Growth
32.82 (Jan-31-2011)
Rs.5000
N.A.
N.A.
Feb 18, 2010
BSE 100
Prateek Agrawal
N.A.
N.A.
1.00%
Exit Load 1% if redeemed within 1year from the date of
allotment.

Year
2010
Qtr 1
0.8
Qtr 2
-2.1
Qtr 3
9.2
Qtr 4 Annual
-7
0.9
STANDARD
DEVIATION
YEAR
RETURN
(S.D)
2010
0.9000
1.7106
AVERAGE
0.9000
1.7106
69
BETA
()
2.8314
2.8314
CO-RELATION
COEFFICIENT
(r)
0.8231
0.8231
Baroda Pioneer INFRASTRUCTURE Fund (G)
Fund
Type
Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Entry Load
Exit Load
Load Comments
Open-Ended
Growth
33.31 (Nov-30-2010)
Rs.5000
N.A.
N.A.
May 31, 2010
CNX 100
Dipak Acharya
N.A.
N.A.
1.00%
Exit load: 1% if redeemed on or before 365 Days from the date of
allotment.

Year
2010
Qtr 1
-
Qtr 2
0.1
Qtr 3
6.3
70
Qtr 4 Annual
-3.9
2.5

STANDARD
DEVIATION
YEAR
RETURN
(S.D)
2010
2.5000
1.8082
AVERAGE
2.5000
1.8082
BETA
()
2.0489
2.0489
CO-RELATION
COEFFICIENT
(r)
0.8829
0.8829
Canara Robeco INFRASTRUCTURE Fund (G)
Fund
Type
Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Entry Load
Exit Load
Load Comments
Open-Ended
Growth
156.27 (Feb-28-2011)
Rs.5000
N.A.
N.A.
Nov 09, 2005
S&P CNX Nifty
Anand Shah
N.A.
0.00%
1.00%
Exit load 1% if redeemed/switched out within 1 year from the
date of allotment. For all investments in SIP/STP exit load 1%, if
redeemed/switched out within 2 year from the date of allotment.
71

Year
2010
2009
2008
2007
2006
YEAR
2010
2009
2008
2007
2006
AVERAGE
Qtr 1
1.4
-2.7
-30.6
-9.5
25.3
Qtr 2
4.2
55.5
-19.8
30.4
-18.8
Qtr 3
Qtr 4 Annual
9.7
-5.8
9.5
14.5
3.8
71.1
-4
-20.6
-75
23.7
30.7
75.3
13.4
13.5
33.4
STANDARD
DEVIATION
RETURN
(S.D)
9.5000
71.1000
-75.0000
75.3000
33.4000
22.8600
1.7106
5.8512
2.9576
3.0405
3.1798
3.3479
BETA
()
CO-RELATION
COEFFICIENT
(r)
2.2488
3.8310
2.8129
5.0834
4.6253
3.7203
0.6888
0.9905
0.8739
0.9316
0.8966
0.8763
PERFORMANCE OF MUTUAL FUNDS UNDER INFRASTRUCTURE

SECTOR
SCHEME
L&T Infrastructure Fund

(G)
Bharti AXA Focused
Infrastructure Fund (G)
AVERAGE
RETURN
STANDARD
DEVIATION
(S.D)
BETA
()
CO-RELATION
COEFFICIENT
(r)
-4.4667
3.5064
4.0577
0.9411
0.9
1.7106
2.8314
0.8231
72

Baroda Pioneer
Canara Robeco
Infrastructure (G)
AVERAGE
2.5000
1.8082
2.0489
0.8829
22.8600
3.3479
3.7203
0.8763
5.4483
2.5933
3.1646
0.8808
Interpretation:Researcher has taken an average of Infrastructure Sectors funds to know the risks and return
associate with it.
Here, Average Standard Deviation is 2.5933 which mean the Infrastructure funds have a
Average Beta of Infrastructure funds 3.1646. Which is more than 1 that is risks is higher.
Average Co-relation Coefficient of funds is 0.8808. This is near to 1 which means that
positive correlation between return of Infrastructure funds and BSE index.
5.4) PERFORMANCE OF MUTUAL FUNDS UNDER POWER SECTOR

ICICI Pru POWER (G)
Fund
Type
Investment Plan
Asset Size (Rs cr)
Open-Ended
Growth
648.95 (Dec-31-2010)
73

Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Entry Load
Exit Load
Load Comments
Rs.5000
N.A.
N.A.
Oct 05, 2001
S&P CNX Nifty
Mrinal Singh / Sanjay Parekh
N.A.
N.A.
1.00%
from the date of allotment. Exit Load of 1% for SIP/STP if units
are redeemed / switched-out within 2 year from the date of
allotment.
Year
2010
2009
2008
2007
2006
Qtr 1
1.6
-0.9
-28.7
-6.4
25
Qtr 2
2.7
42
-16.2
20.5
-12.2
Qtr 3
15.4
18.6
-0.7
10.3
16.9
Qtr 4 Annual
-0.9
18.8
6.3
66
-22.8
-68.4
24.2
48.6
12.9
42.6
STANDARD
DEVIATION
YEAR
RETURN
(S.D)
2010
18.8000
1.7106
2009
66.0000
5.8512
2008
-68.4000
2.9576
2007
48.6000
3.0405
2006
42.6000
3.1798
AVERAGE 21.5200
3.3479
BETA
()
3.5158
2.7572
3.3783
3.2724
4.0949
3.4037
CO-RELATION
COEFFICIENT
(r)
0.9525
0.9904
0.9561
0.8391
0.9372
0.9350
Escorts POWER and Energy Fund (G)

74
Fund
Type
Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Entry Load
Exit Load
Load Comments
Open-Ended
Growth
1.71 (Jan-31-2011)
Rs.5000
N.A.
N.A.
Sep 23, 2008
BSE Power Index
Jagveer Singh Fauzdar
N.A.
N.A.
1.00%
Year
2010
2009
YEAR
2010
2009
AVERAGE
Qtr 1
-3
2
Qtr 2
2.5
43.5
Qtr 3
Qtr 4 Annual
5.8
-5.7
-0.4
7.8
6.8
60.1
STANDARD
DEVIATION
RETURN
(S.D)
-0.4000
60.1000
29.8500
1.7106
5.8512
3.7809
75
BETA
()
CO-RELATION
COEFFICIENT
(r)
1.8661
2.7114
2.2887
0.7079
0.9565
0.8322
Reliance Diversified POWER sector fund Retail Plan (G)
Fund
Type
Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Exit Load
Load Comments
Open-Ended
Growth
4,606.89 (Dec-31-2010)
Rs.5000
N.A.
N.A.
Apr 15, 2004
BSE Power Index
Sunil Singhania
N.A.
N.A.
1.00%
Exit load - 1% if redeemed/switched out on or before completion
of 1 yrs from the date of allotment.
Year
2010
2009
2008
2007
2006
Qtr 1
0.1
-2.5
-23.6
-6.5
31
Qtr 2
2.7
55
-16.5
31.7
-21.4
Qtr 3
7.2
16.4
1
25.7
21.6
76
Qtr 4 Annual
-6.7
3.3
-0.2
68.7
-21.2
-60.3
43.6
94.5
22.8
54

YEAR
2010
2009
2008
2007
2006
AVERAGE
STANDARD
DEVIATION
RETURN
(S.D)
3.3000
68.7000
-60.3000
94.5000
54.0000
32.0400
1.7106
5.8512
2.9576
3.0405
3.1798
3.3479
BETA
()
CO-RELATION
COEFFICIENT
(r)
1.9421
3.9297
3.0530
5.6012
5.6081
4.0268
0.6601
0.9987
0.9380
0.9182
0.8711
0.8772
Sahara POWER & Natural Resources Fund (D)
Fund
Type
Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Entry Load
Exit Load
Load Comments
Open-Ended
Dividend
5.06 (Dec-31-2010)
Rs.5000
Rs.2.00 (Aug-02-2010)
N.A.
May 27, 2008
S&P CNX Nifty
A. N. Sridhar
N.A.
N.A.
1.00%
Exit Load 1% if units are redeemed / switched-out within 36
months from the date of allotment

77
Year
2010
2009
2008
YEAR
2010
2009
2008
AVERAG
E
Qtr 1
-2.8
-4.2
-
Qtr 2
2.6
61.7
-7.1
Qtr 3
Qtr 4 Annual
11.9
-7.2
4.7
14.5
4.9
76.9
-8.2
-21.3
-36.6
RETUR
N
STANDAR
D
DEVIATIO
N
(S.D)
BETA
()
CORELATION
COEFFICIEN
T (r)
4.5000
76.9000
-36.6000
1.7106
5.8512
2.9098
3.4581
4.2767
1.9447
0.8304
0.9852
0.8773
14.9333
3.4905
3.2265
0.8976
PERFORMANCE OF MUTUAL FUNDS UNDER POWER SECTOR
SCHEME
AVERAGE
RETURN
STANDARD
DEVIATION
(S.D)
BETA
()
CO-RELATION
COEFFICIENT
(r)
ICICI Pru Power (G)

Escorts Power and Energy
Fund (G)
Reliance Diversified Power
Sector Fund - Retail Plan (G)
21.5200
29.8500
3.3479
3.7809
3.4037
2.2887
0.9350
0.8322
32.0400
3.3479
4.0268
0.8772
78

Sahara Power & Natural
Resources Fund (D)
AVERAGE
14.9333
3.4905
3.2265
0.8976
24.5858
3.4918
3.2364
0.8855
Interpretation:Researcher has taken an average of Power Sectors funds to know the risks and return
associate with it.
Here, Average Standard Deviation is 3.4918 which mean the Power funds have a higher
volatile with comparison of BSE index return.
Average Beta of Power funds 3.2364. Which is more than 1 that is risks is higher.
positive correlation between return of Power funds and BSE index.
5.5) PERFORMANCE OF MUTUAL FUNDS UNDER TECHNOLOGY

SECTOR
Tata Life Sciences & Technology Fund (D)
Fund
Open-Ended
Type
79

Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Entry Load
Exit Load
Load Comments
Dividend
61.55 (Jan-31-2011)
Rs.5000
Rs.2.00 (Aug-20-2010)
N.A.
BSE Sensitive Index
Bhupinder Sethi
N.A.
N.A.
1.00%
Exit load - 1% if redeemed/switched out on or before expiry of
365 days from the date of allotment.
Year
2010
2009
2008
2007
2006
Qtr 1
1.3
1.5
-29.7
-5.2
19.6
Qtr 2
2.8
54.3
-2.2
-5.3
-15.4
Qtr 3
-1.9
21.1
-7.7
-17.5
18.3
Qtr 4 Annual
5
7.2
-0.2
76.7
-21.9
-61.5
15.2
-12.5
9.4
31.9
STANDARD
DEVIATION
YEAR
RETURN
(S.D)
2010
7.2000
1.7106
2009
76.7000
5.8512
2008
-61.5000
2.9576
2007
-12.8000
3.0405
2006
31.9000
3.1798
AVERAGE
8.3000
3.3479
BETA
()
-1.1571
3.7436
3.0411
0.4456
4.2166
2.0579
CO-RELATION
COEFFICIENT
(r)
-0.7889
0.9984
0.8208
0.1154
0.9540
0.4199
ICICI Pru Technology Fund (D)

80
Fund
Type
Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Entry Load
Exit Load
Load Comments
Open-Ended
Dividend
228.22 (Dec-31-2010)
Rs.5000
N.A.
N.A.
Jan 28, 2000
BSE Teck
Deven Sangoi / Mrinal Singh
N.A.
N.A.
1.00%
Exit Load 1% if units are redeemed / switched-out for a period
of up to 1 year from the date of allotment.

Year
2010
2009
2008
2007
2006
YEAR
2010
2009
Qtr 1
2.4
-6.2
-27.4
-2.3
11.1
Qtr 2
3.4
43.2
-3.7
16
-18
Qtr 3
Qtr 4 Annual
13.7
12.8
32.3
33.5
12.7
83.2
-19.3
-32.7
-83.1
-9.7
12.3
16.3
13.6
37.5
44.2
STANDARD
DEVIATION
RETURN
(S.D)
32.3000
1.7106
83.2000
5.8512
81
BETA
()
2.1479
2.8525
CO-RELATION
COEFFICIENT
(r)
0.7070
0.8743

2008
2007
2006
AVERAGE
-83.1000
16.3000
44.2000
18.5800
2.9576
3.0405
3.1798
3.3479
2.2786
0.6330
2.5986
2.1021
0.6153
0.1834
0.4198
0.5600
DSP BlackRock Technology.Com Regular Plan (D)
Fund
Type
Investment Plan
Asset Size (Rs cr)
Minimum Investment
Last Dividend
Bonus
Launch Date
Benchmark
Fund Manager
Notes
Entry Load
Exit Load
Load Comments
Open-Ended
Dividend
69.62 (Jan-31-2011)
Rs.5000
Rs.10.00 (Jan-04-2008)
N.A.
Apr 18, 2000
BSE Teck
Apoorva Shah / Aseem Gupta
N.A.
N.A.
1.00%
Exit Load 1% if redeemed within 12 months from the date of
allotment.
Year
2010
2009
2008
2007
2006
Qtr 1
1.5
-9.2
-49.1
5.8
12.6
Qtr 2
2.6
48.5
-4.2
20.6
-17.1
Qtr 3
Qtr 4 Annual
7.1
0.1
11.3
36.8
7.2
83.3
-13.9
-29.1
-96.3
2.3
22.2
50.9
16.7
29.6
41.8
82
STANDARD
DEVIATION
YEAR
RETURN
(S.D)
2010
11.3000
1.7106
2009
83.3000
5.8512
2008
-96.3000
2.9576
2007
50.9000
3.0405
2006
41.8000
3.1798
AVERAGE 18.2000
3.3479
BETA
()
1.3891
3.5244
4.2870
0.9526
3.0745
2.6455
CO-RELATION
COEFFICIENT
(r)
0.9061
0.8982
0.7478
0.3298
0.5718
0.6907
PERFORMANCE OF MUTUAL FUNDS UNDER TECHNOLOGY

SECTOR
SCHEME
AVERAGE
RETURN
STANDARD
DEVIATION
(S.D)
BETA
()
CO-RELATION
COEFFICIENT
(r)
Tata Life Sciences &

Technology Fund (D)
ICICI Pru Technology Fund
(D)
DSP BlackRock
Technology.Com - Regular
Plan (D)
8.3000
3.3479
2.0579
0.4199
18.5800
3.3479
2.1021
0.5600
18.2000
3.3479
2.6455
0.6907
15.0267
3.3479
2.2685
0.5569
AVERAGE
Interpretation:83
Researcher has taken an average of Technology Sectors funds to know the risks and return
associate with it.
Here, Average Standard Deviation is 3.3479 which mean the Technology funds have a
Average Beta of Technology funds 2.2685. Which is more than 1 that is risks is higher.
positive correlation between return of Technology funds and BSE index.
ANALYSIS OF EACH SECTOR BY TAKING THEIR AVERAGE
AVERAGE
AVERAGE
RETURN
STANDARD
DEVIATION
(S.D)
BETA ()
CO-RELATION
COEFFICIENT
(r)
FMCG
INFRATRUCTURE
PHARMACEUTICAL
POWER
TECHNOLOGY
14.0533
5.4483
16.6600
24.5858
15.0267
3.3479
2.5933
3.2074
3.4918
3.3479
2.2874
3.1646
1.7796
3.2364
2.2685
0.7806
0.8808
0.3727
0.8855
0.5569
Interpretation:84
Here, Researcher has compare all the five sectors by taking their average
Standard Deviation of Infrastructure sector is less that is 2.5933 as compare to all four
sectors and power sector is higher that is 3.4918. This shows the volatile in return with respect
to BSE index.
Beta of pharmaceutical sector is less that is 1.7796 and power sector shows the higher beta
that mean the higher risks associate with power sector as compare to all five selected sectors.
Co-relation co-efficient of pharmaceutical sector is less that is 0.3727 and power sector
shows the higher Co-relation co-efficient that is 0.8855.
PERFORMANCE OF TOP 10 SECTORAL MUTUAL FUNDS UNDER THE

CONSIDERATION OF FUND BETA ()
SCHEME
AVERAGE
RETURN
STANDARD
DEVIATION
BETA
()
L&T Infrastructure Fund (G)

Canara Robeco Infrastructure
(G)
ICICI Pru Power (G)
Resources Fund (D)
Bharti AXA Focused
-4.4667
32.0400
3.5064
3.3479
4.0577
4.0268
CO-RELATION
COEFFICIENT
(r)
0.9411
0.8772
22.8600
3.3479
3.7203
0.8763
21.5200
14.9333
3.3479
3.4905
3.4037
3.2265
0.9350
0.8976
0.9
1.7106
2.8314
0.8231
85

DSP BlackRock
Technology.Com - Regular
Plan (D)
ICICI Pru FMCG Fund (D)
Fund (G)
18.2000
3.3479
2.6455
0.6907
15.6200
8.1200
29.8500
3.3479
3.3479
3.7809
2.3814
2.3032
2.2887
0.8233
0.7134
0.8322
Interpretation:Here, the researcher has taken Top 10 Sector wise Mutual Funds Scheme Fund Beta () to
know the risk associate with Mutual Funds.
Here, the L&T Infrastructure Fund (G) has a highest Beta i.e. 4.0577 which show the risk is
higher in investing this fund as compare to other mutual funds.
Escorts Power and Energy Fund (G) has a lowest Beta i.e. 2.2887 which show the risk is
there but as compare to all the sachems risk is less.
PERFORMANCE OF TOP 10 SECTORAL MUTUAL FUNDS UNDER THE

CONSIDERATION OF CO-RELATION CO-EFFICIENT (r)
SCHEME
L&T Infrastructure Fund

(G)
ICICI Pru Power (G)
AVERAGE
RETURN
STANDARD
DEVIATION
BETA
()
CO-RELATION
COEFFICIENT
(r)
-4.4667
3.5064s
4.0577
0.9411
21.5200
3.3479
3.4037
0.9350
86

Resources Fund (D)
Baroda Pioneer
Canara Robeco
Infrastructure (G)
Fund (G)
Bharti AXA Focused
Franklin FMCG Fund (G)
14.9333
3.4905
3.2265
0.8976
2.5000
1.8082
2.0489
0.8829
32.0400
3.3479
4.0268
0.8772
22.8600
3.3479
3.7203
0.8763
29.8500
3.7809
2.2887
0.8322
15.6200
0.9
3.3479
1.7106
2.3814
2.8314
0.8233
0.8231
18.4200
3.3479
2.1777
0.8051
Interpretation:Here, the researcher has taken Top 10 Sector wise Mutual Funds Scheme of Co-relation Coefficient (r) to know relation between the return of Mutual Funds and return of BSE index.
Here, the L&T Infrastructure Fund (G) has a highest Co-relation Co-efficient i.e.
0.9411which is near to 1 and show the positive relationship between the return of BSE index
and return of Mutual Funds.
Franklin FMCG Fund (G) has a lowest Co-relation Co-efficient i.e. 08051 which is also near
to 1 which shows the positive relationship between the return of BSE index and return of
Mutual Funds.
87
6.1) FINDING
6.2) SUGGESTION
6.3) CONCLUSION
88
FINDING
Due to lack of awareness about investing in different Sectoral Mutual Funds they are not
investing in it. Hence, it is necessary to educate them by arranging some educational
seminar to show them how to invest in Mutual Funds? What is the liquidity? What is the
risk covered in Mutual Funds?
Most of people know only UTI Mutual Funds. Hence, it is necessary to increase
advertisement effort for private Mutual Funds and Public Mutual Funds.
Many of the people dont know the different schemes available at market for investing
their money into the different Mutual Funds.
The Indian Mutual Funds retail market, which at present is growing at around 30%, is
estimated to reach US$ 300 Billion by 2015.
Private sector Asset Management Companies (AMCs) account for majority of Mutual
Funds sales in India (around 84%)
89
SUGGESTION
After completing my training in sectoral mutual fund. Researcher can rightly say that
Mutual Fund is the right investment option to get good return out of it.
People who want high return in short period they should invest in different secortal
Mutual Funds, but for the same they should be ready to take high risk also.
Investors who want less risk exposure and who want stable income should invest in
Mutual Funds.
Sectoral investment weightage given by Mutual Funds (Fund Manger) gives a

forecasting of which sector would be up coming, so investors should take an investment
decision on the basis of sectoral weightage given by Fund Manager.
During my winter training, researcher found out that an investor have mindset that it one
sector gives higher return, but after fortnight this sectors doesnt gives higher return
even though an investors invest in this particular sectors that kinds of mindset investors
researcher would suggest that they may go for another sectors for investment.
During my winter training, researcher found that the certain government norms as well
as the economic condition of country affecting the investors.
90
CONCLUSION
Researcher has found the risks and return with comparison of BSE index.
Researcher has found the co-relation co-efficient between Mutual Funds returns and
BSE index returns.
Researcher has also found the Beta, so he might come to know what is risks involved in
the sources of investment are?
Researcher has found the Standard Deviation of securities to know the volatility with
comparison of BSE index.
Many of the people investing their money into the different sources of Mutual Funds
because of expanded their wealth as long time.
Researcher would come at my conclusion that if an individual can invest their money
into the different Mutual Funds then he \ she may reduce risks and earned handsome
amount of returns out of it.
In Mutual Funds, we know there is a lower risk so that there are less chances that
investor make a loss. Even if the market is down then the loss is also less than direct
investment in Sensex, but the return associated with Mutual Funds is also less as
compare to direct investing in sensex.
91
BIBLIOGRAPHY
Books
Name of books
Edition
Author
:::-
Investment management
4th
V.K.Bhalla
Wed Site:
www.Moneycontrol.com
www.Bseindia.com
www.Mutualfundsindia.com
www.Capitalmarket.com
http://www.moneycontrol.com/mutual-funds/nav/
http://www.moneycontrol.com/mutual-funds/detail-view/
92
http://www.bseindia.com/stockinfo/indices_main.aspx
http://www.mutualfundsindia.com/nav_view.asp?scheme=KP016
ANNEXURE
Mont
h
Open
6-Jan
6-Feb
High
Low
Close
Return
9,422.49
9,959.24
9,158.44
9,713.51
9,919.89
10,370.24
5.5540
4.5399
8.7724
11,342.96
10,344.2 11,279.96
6
11,008.43 12,042.56
9,945.19
10,422.6
5
6-Mar 10,368.75 11,356.95
6-Apr
6-May 12,103.78
6-Jun 10,472.46
6-Jul
10,616.97
6-Aug
10,737.50
6-Sep
11,699.57
6-Oct
12,473.79
6-Nov
12,992.62
6-Dec
13,729.67
12,102.0
0
12,671.11
10,626.8
4
10,940.4
5
11,794.43
12,485.1
7
13,075.8
5
13,799.0
8
14,035.3
0
Quarter
Quarterly
return
Q1
6.2888
Q2
-1.6216
Q3
5.5387
Q4
3.4674
6.7607
9,826.91
8,799.01
10,398.61 -13.6512
10,609.25 2.0257
9,875.35
10,743.88
1.2690
10,645.9 11,699.05
9
11,444.18 12,454.42
8.8904
12,178.8
3
12,937.3
0
12,801.6
5
12,961.90
4.0747
13,696.31
5.6659
13,786.91
0.6615
6.4567
SENSEX QUARTERLY RETURN

For the year 2006:93
For the year 2007:Mont

h
Open
High
Low
Close
Return
7-Jan
13,827.7
7
14,124.3
6
13,013.7
4
12,811.9
3
13,987.7
7
14,610.2
8
14,685.1
6
15,344.0
2
15,401.9
9
17,356.9
9
20,130.2
3
19,547.0
9
14,325.9
2
14,723.8
8
13,386.9
5
14,383.7
2
14,576.3
7
14,683.3
6
15,868.8
5
15,542.4
0
17,361.4
7
20,238.1
6
20,204.2
1
20,498.1
1
13,303.2
2
12,800.9
1
12,316.1
0
12,425.5
2
13,554.3
4
13,946.9
9
14,638.8
8
13,779.8
8
15,323.0
5
17,144.5
8
18,182.8
3
18,886.4
0
14,090.9
2
12,938.0
9
13,072.1
0
13,872.3
7
14,544.4
6
14,650.5
1
15,550.9
9
15,318.6
0
17,291.1
0
19,837.9
9
19,363.1
9
20,286.9
9
2.2051
High
Low
Close
7-Feb
7Mar
7-Apr
7May
7-Jun
7-Jul
7Aug
7-Sep
7-Oct
7-Nov
7-Dec
Quarte
r
Quarterl
y
return
Q1
-1.6468
Q2
3.8986
Q3
5.8428
4.7709
Q4
5.7023
Return
Quarte
Quarterl
-8.1814
1.0358
6.1220
4.8448
0.7291
6.1464
-1.4944
12.8765
14.7295
-2.3934
Open
94

h
8-Jan
8-Feb
8Mar
8-Apr
8May
8-Jun
8-Jul
8Aug
8-Sep
8-Oct
8-Nov
8-Dec
20,325.2
7
17,820.6
7
17,227.5
6
15,771.7
2
17,560.1
5
16,591.4
6
13,480.0
2
14,064.2
6
14,412.9
9
13,006.7
2
10,209.3
7
9,162.94
y
return
Q1
-8.1350
Q2
-4.1788
Q3
-1.2013
21,206.7
7
18,895.3
4
17,227.5
6
17,480.7
4
17,735.7
0
16,632.7
2
15,130.0
9
15,579.7
8
15,107.0
1
13,203.8
6
10,945.4
1
10,188.5
4
15,332.4
2
16,457.7
4
14,677.2
4
15,297.9
6
16,196.0
2
13,405.5
4
12,514.0
2
14,002.4
3
12,153.5
5
7,697.39
17,648.7
1
17,578.7
2
15,644.4
4
17,287.3
1
16,415.5
7
13,461.6
0
14,355.7
5
14,564.5
3
12,860.4
3
9,788.06
13.0048
-0.3966
8,316.39
9,092.72
11.7003
23.8901
-7.1040
8,467.43
9,647.31
6.0993
Q4
-8.2983
Quarte
r
Quarterl
y
return
11.0035
10.5013
-5.0427
17.9949
6.6422
1.4543

h
Open
High
Low
Close
Return
9-Jan
9,720.55
8,631.60
9,424.24
-2.3123
9-Feb
9,340.37
10,469.7
2
9,724.87
8,619.22
8,891.61
-5.6517
95

9Mar
9-Apr
8,762.88
9May
9-Jun
11,635.2
4
14,746.5
1
14,506.4
3
15,694.7
8
15,691.2
7
17,186.2
0
15,838.6
3
16,947.4
6
9-Jul
9Aug
9-Sep
9-Oct
9-Nov
9-Dec
9,745.77
10,127.0
9
11,492.1
0
14,930.5
4
15,600.3
0
15,732.8
1
16,002.4
6
17,142.5
2
17,493.1
7
17,290.4
8
17,530.9
4
8,047.17
9,708.50
9.1872
9,546.29
11,403.2
5
14,625.2
5
14,493.8
4
15,670.3
1
15,666.6
4
17,126.8
4
15,896.2
8
16,926.2
2
17,464.8
1
17.4564
11,621.3
0
14,016.9
5
13,219.9
9
14,684.4
5
15,356.7
2
15,805.2
0
15,330.5
6
16,577.7
8
Q1
0.4077
Q2
14.9376
Q3
5.8047
Q4
0.8254
28.2551
-0.8985
8.1170
-0.0234
9.3204
-7.1850
6.4791
3.1820
For the year 2010:Month
Open
High
Low
Close
Return
10-Jan
10-Feb
10-Mar
10-Apr
10-May
10-Jun
10-Jul
10-Aug
10-Sep
10-Oct
10-Nov
17,473.45
16,339.32
16,438.45
17,555.04
17,536.86
16,942.82
17,679.34
17,911.31
18,027.12
20,094.10
20,272.49
17,790.33
16,669.25
17,793.01
18,047.86
17,536.86
17,919.62
18,237.56
18,475.27
20,267.98
20,854.55
21,108.64
15,982.08
15,651.99
16,438.45
17,276.80
15,960.15
16,318.39
17,395.58
17,819.99
18,027.12
19,768.96
18,954.82
16,357.96
16,429.55
17,527.77
17,558.71
16,944.63
17,700.90
17,868.29
17,971.12
20,069.12
20,032.34
19,521.25
-6.3376
0.4376
6.6844
0.1765
-3.4973
4.4632
0.9457
0.5755
11.6743
-0.1833
-2.5513
96
Quarter
Quarterly
return
Q1
0.2615
Q2
0.3808
Q3
4.3985

10-Dec
19,529.99
20,552.03
19,074.57
20,509.09
5.0603
Q4
0.7752
QUARTERLY RETURN OF SENSEX
Year
201
0
200
9
200
8
200
7
200
6
Qtr 1
0.2614
9
0.4077
5
-8.135
-1.6468
6.2887
6
Qtr 2
0.3808
14.937
6
Qtr 3
4.3984
8
5.8046
9
-4.1788
3.8986
4
Qtr 4
0.7752
5
0.8253
8
Annual
5.81602
21.9754
2
-1.2013 -8.2983 -21.8134

5.8428 5.7023 13.7970
5
4
3
5.5386
-1.6216
8
1.6468 11.85264
(Sources: - bseindia.com/about/bseannual_archives.asp)
97

Analysis of Sectoral Mutual Funds

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ANALYSIS OF SECTORAL MUTUAL FUNDS