Financial Services

Assignment Problem 1
MBA-BM

7/6/2017 Dr. Soumya G Deb 1

 Assignment Problem
What you need to do ?
Analyze, select and recommend some funds from
a group of funds.
Each group should consider 3 schemes each any 3 from the following
categories ( i.e each group should analyze 3 x 3 =9 schemes):
Diversified
Equity : Global
Equity : Global FoF
Equity Exchange Traded Funds
Equity Linked Savings Scheme
Fund Of Funds
Sector Funds
Specialty

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 Assignment Problem..contd..
The 3 schemes in each category should be from 3
different fund houses and should be comparable
in nature:
for example if you are selecting an aggressive growth
fund from one house, the others should also be
aggressive growth funds.

Select the ones which have adequate return data

points can be generated, at least 60) .Schemes
should not be repeated across groups.

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 Assignment 1..contd..
Analyze/compare the performance (risk and
return) of each scheme under each category,
based on both conventional and downside
risk adjusted measures and comment
whether the AUMs managed and expenses
charged are justified.

Need to give JUSTIFICATION of the indicators

you are USING or NOT USING.

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 Assignment 1..contd..
Look at the holdings data over the last few years and try
and prepare a style map based on the nature of the stocks
: small cap, medium cap or large and value/growth/median
. How do you classify stocks into value /growth or large
cap/small cap will be discussed in class.
If data of holdings is available across a number of periods
see if there is a style drift.

Finally make a recommendation from your bouquet of 3

for one fund in each category based on all your results and
observations.

If you can bring in some macro economic perspective into your

selection process, that will be considered as added advantage.

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 Data for the assignment
Shall be provided ( uploaded in AIS).
4 worksheets:
i) monthly return data of around 550 schemes
between Jan-2000 to May-2017.
ii)a specification about the nature of the scheme
iii) AUM data of schemes
iv) Expense ratio of schemes.

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 Assignment 1..contd..
You need to prepare the detailed analysis report
in an excel spreadsheet and email the soft
copies to me.
No hard copies are required.

There should be a title page with answers to the

questions along with links provided to the
subsequent calculation sheets as you have done
before.
Please ensure this format

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 Assignment 1contd..
Go to the website of a fund research organization ( like
Valueresearch or Morningstar) .

Select the schemes that you have chosen and see their
actual performance reports.

See if your analysis and overall recommendation

matches with what they propose.
Of course your analysis is expected to be much more
detailed with a much larger set of indicators than these
sites. They would typically provide a few basic indicators .

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 Assignment 1contd..

Questions ?

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