Performance analysis of selected mutual fund schemes

INTERNSHIPPRESENTATIO

N

Presented By:

Gagandeep KumarCUN120550014

INTRODUCTION

Incorporated on August 1994 by the name of “HDFC Bank Limited”, with its registered office in Mumbai

HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

The Housing Development Finance Corporation (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994.

Date of Incorporation : 1994

Registered Office : HDFC Bank House,Senapati Bapat

Marg, Lower Parel, Mumbai – 400 013. Tel.No.: 022 - 66521000

Public Issue Date : December 31, 1995

BSE Code : 500180

NSE Code : HDFCBANK

Web URL : http://www.hdfcbank.com

Logo :

CORPORATE PROFILE

http://www.hdfcbank.com/

BOARD OF DIRECTORS

Director Name Designation

C M Vasudev Non Executive Chairman

Aditya Puri Managing Director

Harish Engineer Executive Director

Paresh Sukthankar Executive Director

Anami N Roy Director

Ashim Samanta Director

Bobby Parikh Director

Partho Datta Director

Renu Karnad Director

Pandit Palande Director

Sanjay Dongre Company Secretary

Merger and Amalgamation

In a milestone transaction in the Indian banking industry, Times Bank Limited was merged with HDFC Bank Ltd., effective February 26, 2000. With this, HDFC and Times became the first two private banks in the New Generation Private Sector Banks to have gone through a merger.

During the year ended March 31, 2009, the RBI accorded its consent to the Scheme of Amalgamation of Centurion Bank of Punjab (CBP) with HDFC Bank. Pursuant to the order of amalgamation the operations of both Banks were merged with effect from May 23, 2008.

Mission and Business Strategy

Our mission is to be "a World Class Indian Bank", benchmarking ourselves against

international standards and best practices in terms of product offerings, technology, service

levels, risk management and audit & compliance. The objective is to build sound customer

franchises across distinct businesses so as to be a preferred provider of banking services

for target retail and wholesale customer segments, and to achieve a healthy growth in

profitability, consistent with the Bank's risk appetite. We are committed to do this while

ensuring the highest levels of ethical standards, professional integrity, corporate governance

and regulatory compliance.

Our business strategy emphasizes the following :

Increase our market share in India’s expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service.

Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs.

Maintain our current high standards for asset quality through disciplined credit risk management. Develop innovative products and services that attract our targeted customers and address

inefficiencies in the Indian financial sector. Continue to develop products and services that reduce our cost of funds. Focus on high earnings growth with low volatility.

HDFC Mutual Fund

HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000.

The registered office of the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai - 400 020.

The paid up capital of the AMC is Rs. 25.169 crore.

Mutual Fund Process

HDFC 20 Branch

HDFC opened its branch in sector 20 on 31st march,2012

Branch AddressSCO 25SECTOR 20DCHANDIGARH

Name Designation

Ashish Ahuja Branch ManagerNitin Gupta PB AuthorizerBhavna Khosla Internal operations(Cashier)Gauravjeet Singh PB Welcome Harvinder Singh PB Sales

Financial Information: CASA value 4.374crCurrent Account 1.69crSaving Account 2.68cr

Total liabilities 7.81cr

Performance Analysis of selected Mutual fund schemes

NEED OF THE STUDY

Need of the study is to check the performance of the selected

mutual fund scheme which will further help the investors who

are willing to invest in the mutual fund.

Adding to this,further need is to evaluate the best scheme of the

period which has outperformed the market.

OBJECTIVES OF THE STUDY

Indian mutual fund industry is featured by a schemes consisting of varying portfolio mix,

investment objectives and expertise of professional fund management. For the small

investor, choosing a suitable one is therefore a complex decision. This present study has the

objective of finding out the necessary facts rearding performance of selected growth-

oriented and open-ended schemes, which can benefit the investors and fund managers.

The specific objectives of the study are:

To analysis the financial performance of selected mutual fund schemes through the statistical parameters (Standard Deviation, Beta and Alpha) and ratio analysis (Sharpe Ratio, Treynor Ratio)

To compare the performance of selected mutual fund schemes Anlaysis will help the investors for investing in mutual fund and understand the

performance of mutual fund schemes

DATA COLLECTIONSECONDARY DATA

The fact sheets are issued by the AMC updated periodically on the various

information of the schemes. It involves portfolio of the scheme, sectoral

allocation, performance compared to their benchmarks over a period of time and

portfolio turnover ratio etc acted as a complete profile about the facts and

features of the various schemes of the AMC.

The monthly edition magazine on mutual fund named insight to mutual funds

and newspaper helped me to collect data on the current situation of the mutual

fund industry, the recent changes taken place and emerging sectors for the

investment of the funds.

And finally, through surfing the internet data had been collected through

accessing various websites such as

www.mutualfundindia.com, www.amfiindia.com,www.moneycontrol.com,

http://www.amfiindia.com/

Research Methodology

Return

Risk free rate of return

Beta

Sharpe Ratio

Treynor Ratio

Jensen Alpha

FRAME WORKCOMPANY NAME MUTUAL FUND SCHEME HDFC MUTUAL FUND HDFC TOP 200 (G) OPTION

HDFC TOP 200 (D) OPTION HDFC MIDCAP(D) OPTION HDFC MIDCAP(G) OPTION

RELIANCE MUTUAL FUND RELIANCE TOP 200(G) OPTION RELIANCE TOP200(D) OPTION

BIRLA SUN LIFE BIRLA SUNLIFE TOP 100(G) OPTIONMUTUAL FUND BIRLA SUNLIFE TOP 100(D) OPTION BIRLA SUNLIFE MIDCAP(D) OPTION BIRLA SUNLIFE MIDCAP(G) OPTION

PERFORMANCE ANALYSIS BASED ON STATISTICS PARAMETERS

Table 1EQUITY DIVERSIFIED SCHEMES

Name of Scheme Alpha (α) Beta (β)

HDFC Top MIDCAP Fund -

Growth Option

0.05745786 0.295

HDFC Top 200 Fund -

Growth Option

0.207463865 0.975

Birla Sun Life MIDCAP

Fund - Growth Option

0.082016942 -0.007

Birla Sun Life Top 100 Fund

-Growth Option

0.039529881 0.508

Reliance Top 200 Fund-

Growth Option

0.042760939 0.469

Table 2Debt Schemes Analysis

Name of Scheme Alpha (α ) Beta (β)

Reliance Top 200 Fund- Dividend

Option

0.047191439 0.442

Birla Sun Life Top 100 Fund -

Dividend Option

0.052444375 0.382

HDFC Top 200 Fund - Dividend

Option

0.04468159 0.478

HDFC Top MIDCAP Fund -

Dividend Option

0.046839625 0.43529634

Birla Sun Life MIDCAP Fund -

Dividend Option

0.063791594 0.238

PERFORMANCE ANALYSIS BASED ON RATIO ANALYSIS AND RANKING

Table No. 3EQUITY DIVERSIFIED SCHEMES

Name of Scheme Treynor Ratio Rank

HDFC Top MIDCAP Fund - Growth

Option

-0.0017696 4

HDFC Top 200 Fund - Growth Option -0.00042 5

Birla Sun Life MIDCAP Fund -Growth

Option

0.155904828 1

Birla Sun Life Top 100 Fund -Growth

Option

0.001481 2

Reliance Top 200 Fund-Growth Option 0.000734159 3

Table 4DEBT SCHEMES ANALYSIS

Name of Scheme Treynor Ratio Rank


Option

-0.00422383 1

Birla Sun Life Top 100 Fund –Dividend

Option

-0.00622 4

HDFC Top 200 Fund - Dividend Option -0.00479 3

HDFC Top MIDCAP Fund - Dividend

Option

-0.00461789 2

Birla Sun Life MIDCAP Fund -Dividend

Option

-0.00976 5

PERFORMANCE ANALYSIS BASED ON RATIO ANALYSIS AND RANKING


Name of Scheme Sharpe Ratio Rank


Option

-0.51342 4

HDFC Top 200 Fund - Growth

Option

-0.323090317 2


Growth Option

-0.912223604 5


Growth Option

0.34565195 3

Reliance Top 200 Fund-Growth

Option

0.221700654 1

Table 6Debt Schemes Analysis

Name of Scheme Sharpe Ratio Rank


Option

-1.119377322 1


Dividend Option

-1.524831813 4


Option

-1.409265691 3


Option

-1.38445 2


Dividend Option

-1.98283 5

PERFORMANCE ANALYSIS AND COMPARISON BETWEEN SCHEMES

AND MARKET TREYNOR RATIO

Table 7 EQUITY DIVERSIFIED SCHEMES

Name of Scheme

Treynor Ratio Market Treynor

Ratio


Option

-0.0017696 0.00340718

HDFC Top 200 Fund - Growth Option -0.00042 0.001033


Option

0.155904828 -0.145844212


Option

0.001481 0.001981

Reliance Top 200 Fund-Growth Option 0.000734159 0.002143508


Name of Scheme Treynor Ratio Market Treynor

Ratio


Option

-0.00422383 0.0022792

Birla Sun Life Top 100 Fund –

Dividend Option

-0.00622 0.002636


Option

-0.00479 0.002103


Option

-0.00461789 0.00173718


Dividend Option

-0.00976 0.004223

PERFORMANCE ANALYSIS AND COMPARISON BETWEEN SCHEMES

AND MARKET SHARPE RATIO


Name of Scheme Sharpe Ratio Market Sharpe

Ratio


Option

-0.51342 0.851858

HDFC Top 200 Fund - Growth Option -0.323090317 0.851858


Option

-0.912223604 0.851858


Option

0.34565195 0.851858

Reliance Top 200 Fund-Growth Option 0.221700654 0.851858


Name of Scheme Sharpe Ratio Market Sharpe

Ratio


Option

-1.119377322 0.851858

Birla Sun Life Top 100 Fund –

Dividend Option

-1.524831813 0.851858


Option

-1.409265691 0.851858


Option

-1.38445 0.851858


Dividend Option

-1.98283 0.851858

CONCLUSION

This study creates awareness among the investor community thereby before

Choosing the mutual fund schemes,the investor should undergo fact sheet

thoroughly and he has to choose the best one.

Among the schemes that were analysed,Out of Equity Schemes HDFC TOP

200(G) has topped the list with the good returns and a beta value of .97 which

shows the higher risk as well as higher returns too.Scheme has ranked 2 in

sharpe ratio and 5th in treynor ratio.So this scheme is the preferred and

recommended one for the investors based on the past performance analysis

Using treynors,sharpe and regression statistics.

Even alpha value shows the 20% much return as compare to the expected

return. Out of debt schemes,again HDFC TOP 200(D) has outperformed last

year with the highest beta Value among the other schemes.With the 3 rank in

the treynor ratio and 3 in sharpe ratio the scheme have still outperformed the

market index.With the beta value .47 its is less risky as compare to other

schemes over the period.

Thank You

Performance analysis of selected mutual fund schemes

Economy & Finance

Transcript of Performance analysis of selected mutual fund schemes