2. Profile of Sharekhan
Name of the company : Share khan ltd.
Year of Establishment : 1925
Headquarter : Share Khan SSKIA-
206 Phoenix House
Mills compound
Lower Parel
Mumbai
Maharashtra,
INDIA 400013
3. Sharekhan in fact
900 Share Shops
& Growing 650000 Customers & Growing
Among the top 3
Players in the
Strong Backbone of Research Retail space
& Technology
4. Our Mission
..to educate and empower the individual
investor to make better investment
decisions through
QUALITY ADVICE
INNOVATIVE PRODUCTS and
SUPERIOR SERVICE.
6. Sharekhan shareholding pattern
SHAREKHAN PERCENTAGE
SHAREHOLDING PATTERN
CITY VENTURE 63%
CAPITAL INTERNATIONAL
BARING PRIVTE 12%
EQUITY ASIA
IDFC 10%
MANAGEMENT & 15%
EMPLOYEE
7. Our Products
FIRST STEP FOR THOSE INVESTING FOR THE FIRST TIME IN THE STOCK MARKET
CLASSIC FOR THOSE FOR WHO TRANSACT OCCASIONALLY
TRADE FOR DAY TRADERS AND FOR THOSE WHO TRADE ACTIVELY IN THE
TIGER MARKET
PLATINUM FOR HNIS LOOKING FOR PERSONALIZED AND EXCLUSIVE INVESTMENT
CIRCLE AND PORTFOLIO MANAGEMENT SERVICES (PMS)
8. A
SUMMER PROJECT REPORT
ON
“ Comparative Analysis of Risk,
Return & Diversification of
Mutual Funds”
9. Introduction
The present investigation is aimed to examine the
performance of safest investment instrument in the
security market in the eyes of investors. Six mutual
fund schemes have been selected for this purpose. I.e.
mutual funds by specially focusing on:
• Large cap scheme
• Small & mid cap scheme
• Equity-diversified schemes
• ELSS scheme
• Floating Rate Debt - Short Term scheme
• Balance scheme
10. Assumptions
The schemes have been selected using deliberate
sampling method subject to the criteria mentioned as:
All the funds are taken as per the ranking done by
CRICL
Considering corpus size of AMC 25 crore to 1000 crore
The funds that have been consider as the minimum
investment 500 and maximum 100000 Rs.
The performances of funds are calculated on the bases
of their risk and return.
Closing Net Asset Values (NAV)of the selected funds are
taken on Monthly basis
11. Tools & Techniques
The collected data have been analyzed on basis of returns of
last one month, six months, one year, three years, and five
years. Various statistical and financial techniques namely :
• Sharpe's Ratio : additional return over the Risk-Free return
• Standard Deviation : variation from individual return from
the average expected return
• Beta (β) : reflects the systematic risk
• R-Squared : co-relation between returns generated by a
fund and its benchmark index values range
from 0 to 100
12. Analysis & Interpretation
The data collected of selected mutual fund schemes have
been analyzed into three parts:
A) Analysis on the basis of returns over the period of
time
Returns of Last:
• One Month
• Six Months
• One Year
• Three Years
• Five Years
13. Analysis & Interpretation…
B) Performance evaluation of Selected Funds
• Corpus Size
• Beta
• Alpha
• Standard Deviation
• R-Squared
C) Analysis on the on the bases of diversification
A diversified fund contrasts with specialized or focused
funds
14. Large Cap Scheme
Large cap funds are those mutual funds, which seek
capital appreciation by investing primarily in stocks of
large blue chip companies. companies with a market
capitalization in excess of Rs 1000 crore are known
large cap companies. The selected large cap funds are:
• HDFC Top 200 Fund (G)
• DSP-BR Top 100 Equity - RP (G)
• ICICI Pru Top 100 Fund -Inst –I
• Franklin India Bluechip (G)
• Birla SL Frontline Equity -A (G)
15. A) Analysis on the basis of returns
DSP-BR Top ICICI Pru Top Birla SL
HDFC Top 200 Franklin India
Scheme 100 Equity - 100 Fund -Inst Frontline
Fund (G) Bluechip (G)
RP (G) –I Equity -A (G)
Fund Class Large cap Large cap Large cap Large cap Large cap
Ranking Rank 2 Rank 2 Not Ranked Rank 2 Rank 2
Scheme Asset 11381.06 3109.35 20.13 4516.35 2900.75
Minimum
Rs.5000 Rs.5000 Rs.100000 Rs.5000 Rs.5000
Investment
Franklin
DSP BlackRock ICICI Birla Sun Life
HDFC Asset Templeton
Investment Prudential Asset
AMC/Fund Management Asset Mgmt.
Managers Asset Management
Co. Ltd. (India) Pvt.
Limited Mgmt.Co. Ltd Company Ltd.
Ltd.
Latest NAV 201.863 98.444 19.99 212.827 84.53
16. Performance Returns as on
Jul 04, 12
3 Months 1.30% 0.20% 2.70% 0.60% 2.30%
6 Months 14.60% 12.10% 15.60% 12.00% 13.60%
1 Year -5.20% -3.20% 3.60% -2.00% -4.50%
2 Years 2.40% 2.70% 7.60% 4.60% 1.60%
3 Years 12.70% 11.40% 14.70% 13.00% 11.80%
5 Years 10.60% 8.30% 8.20% 8.10% 8.00%
In terms of last one year returns i.e. from August 11 to
July 12; ICICI Pru Top 100 stood at number one with the
maximum returns of 3.60%
17. B) Performance evaluation of
Selected Funds
Fund Risk Standard Sharpe
Fund Name Beta Alpha R-Squared
Grade Deviation Ratio
HDFC Top
Avg. 19.34 0.4 0.91 4.14 0.95
200
DSPBR Top
100 Equity Low 17.9 0.36 0.84 3.11 0.95
Reg
ICICI
Prudential
Below Avg. 19.13 0.48 0.91 5.57 0.97
Top 100 Inst
I
Franklin
India Low 16.39 0.43 0.78 4.04 0.96
Bluechip
Birla Sun
Life
Avg. 18.06 0.35 0.86 3.02 0.97
Frontline
Equity
18. Graph showing the status of
Std.Deviation
The most risky fund is of HDFC
19. Graph showing the status of
Sharpe Ratio
ICICI Prudential Top 100 Inst I is having maximum
returns per unit of risk (0.48).
20. Graph showing the status of
Beta
Least risky scheme Franklin India Bluechip in terms of
Standard Deviation and Beta
21. C) Analysis on the bases of
diversification
Infosys,
SBI, Infosys, TCS, Reliance, Infosys, ICICI ICICI Bank,
Reliance,
ITC, ICICI Wipro, Kotak Bank, Bharti ITC, Infosys,
Top 5 holdings Bharti Airtel,
Bank, Tata Mahindra, Airtel, HDFC Reliance,
ICICI Bank,
Motors (D) BPCL Bank, Reliance Larsen
Sun Pharma
Weight age to
top 5 30.43% 29.30% 42.74% 30.93% 23.07%
holdings
Banking/Finan Banking/Finan Banking/Finan
Technology, Banking/Finan
ce, ce, ce,
Top 3 Sectors Pharmaceutica ce, Oil & Gas,
Technology, Technology, Technology,
ls, Oil & Gas Technology
Oil & Gas Oil & Gas Automotive
Weight age to
44.96% 46.72% 48.83% 42.67% 43.88%
Top 3 Sectors
22. Findings & Analysis
A. Most preferable investment scenario.
INVESTMENT %
SENARIO
FIXED DEPOSITS 20%
EQUITY 20%
MUTUAL FUNDS 28%
DERIVATIVES 4%
COMMODITIES 4%
REAL STATE 24%
TOTAL 100%
23. B. Which feature of mutual fund allure you most?
FEATURES OF %
MUTUAL FUND
DIVERSIFICATION 30%
BETTER RETURN AND 20%
SAFETY
REDUCTION IN RISK 10%
REGULAR INCOME 5%
TAX BENEFIT 25%
TOTAL 100%