Performance of Different Schemes in Mutual Funds

8/2/2019 Performance of Different Schemes in Mutual Funds

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2/98

DECLARATION

I hereby declare that this Project Report titled

PERFORMANCE OF MUTUAL FUNDS submitted by me to the

Department of Business Management, Osmania University,

Hyderabad is a bonafide work undertaken by me and it is not

submitted to any other University or Institution for the award of any

degree diploma/certificate or published any time before.

PLACE:DATE:

(M. SATYA NARAYANA)


3/98

CERTIFICATE

This is to certify that the Project Report titled PERFORMANCE OF MUTUAL

FUNDS submitted in partial fulfillment for the award of Master of Business

Administration was carried out by M. SATYA NARAYANA under my guidance. This has

not been submitted to any other University or Institution for the award of any degree /

diploma / certificate.

PLACE:DATE:

Signature of the Supervisor


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ACKNOWLEDGEMENTI take this opportunity to thank Mr. M. KARUNAKAR Principal of M.B.A Dept .

STAN FORD PG COLLEGE, for his encouragement in doing the project work.

I would like to thank MrM. KARUNAKARHead of The Department of

M.B.A Dept. for his

I would like to thank Mrs. M. KARUNAKAR Faculty of Finance for his

guidance and suggestion and his kind help and motivation in completing the project.

I take the opportunity to express my deep and sincere gratitude to the

management ofHDFC Mutual Fund for their gesture of allowing me to undertake this

project and its various employees who lent their hand towards the completion this study.

(M. SATYA NARAYANA)


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CONTENTS

CHAPTER- 1

INTRODUCTION

CHAPTER-2

INDUSTRY PROFILE

COMPANY PROFILE

CHAPTER-3

OBJECTIVES AND METHODOLOGY

a. Objectives

b. Methodology

c. Significance of the study

d. Presentation of the study

e. Limitations

CHAPTER-4

DATA ANALYSIS & INTREPRETATION

CHAPTER-5

FINDINGS AND SUGGESTIONS

BIBLIOGRAPHY

LIST OF TABLES


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TABLE NO. TABLE TITLE PAGE NO.

9 Returns, mean, variance, standard deviation of 52

TABLE NO. TABLE TITLE PAGE NO.1 Returns, mean, variance, standard deviation of

HDFC TAX SAVER DIVIDEND PLAN for the

period of July 07

36

2 Returns, mean, variance, standard deviation of


period of August 07

38


HDFC TAX SAVER DIVIDEND PLAN for theperiod of September 07

40



period of -October 07

42


HDFC TAX SAVER DIVIDEND PLAN for the period

of -November 07

44


HDFC TAX SAVER DIVIDEND PLAN for the period

of -December 07

46


HDFC Monthly income plan Long term plan Growth

option for the period July-07

48


HDFC Monthly income plan Long term plan Growth

option for the period August-07

50


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HDFC Monthly income plan Long term plan

Growth option for the period September-0710 Returns, mean, variance, standard deviation of


Growth option for the period October-07

54



Growth option for the period November-07

56



Growth option for the period December-07

58


HDFC Floating Rate income fund long term plan-Dividend for the period July-07

60


HDFC Floating Rate income fund long term plan-

Dividend for the period August-07

62



Dividend for the period September-07

64



Dividend for the period October-07

66

TABLE NO. TABLE TITLE PAGE NO.17 Returns, mean, variance, standard deviation of

HDFC Floating Rate income fund long term plan-Dividend

for the period November-07

68


HDFC Floating Rate income fund long term plan-Dividend

for the period December-07

70


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19 Comparisons of various HDFC Mutual Funds For the month

of july-07

72


of August-07

73


of September-07

74

22

Comparisons of various HDFC Mutual Funds For the month

of October-07

75

23

Comparisons of various HDFC Mutual Funds For the month

of November-07

76


of December-07

77

LIST OF GRAPHS

GRAPH GRAPH TITLE PAGE NO1 Graphical presentation for HDFC Tax Saver fund For the

month of July-07

37

2 Graphical presentation for HDFC Tax Saver fund For themonth of August-07

39

3 Graphical presentation for HDFC Tax Saver fund For the

month of September-07

41

4 Graphical presentation for HDFC Tax Saver fund For the

month of October-07

43

5 Graphical presentation for HDFC Tax Saver fund For the 45


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month of November-076 Graphical presentation for HDFC Tax Saver fund For the

month of December-07

47

7 Graphical presentation for HDFC Monthly Income plan

Long Term Plan Growth option For the MonthOf July-07

49


Long Term Plan Growth option For the Month

Of August-07

51



Of September-07

53



Of October-07

55

GRAPH GRAPH TITLE PAGE NO11 Graphical presentation for HDFC Monthly Income plan

Long Term Plan Growth option For the MonthOf November-07

57

12 Graphical presentation for HDFC Monthly Income planLong Term Plan Growth option For the MonthOf December-07

59

13 Graphical presentation for HDFC Floating Rate IncomeFund Long term Plan Dividend For the month Of July-07 61

14 Graphical presentation for HDFC Floating Rate IncomeFund Long term Plan Dividend For the month OfAugust-07

63

15 Graphical presentation for HDFC Floating Rate Income 65


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Fund Long term Plan Dividend For the month OfSeptember-07

16 Graphical presentation for HDFC Floating Rate IncomeFund Long term Plan Dividend For the month Of

October-07

67

17 Graphical presentation for HDFC Floating Rate Income

Fund Long term Plan Dividend For the month Of

November-07

69

GRAPH GRAPH TITLE PAGE NO18 Graphical Representation for HDFC Floating Rate Income

Fund Long term Plan Dividend For the month Of

December-07

71

19 Graphical Representation of various schemes for the

month of July-07

72

20

Graphical Representation of various Schemes for the

month of August-07

73

21 Graphical Representation of various schemes for themonth of September-07

74


month of October-07

75

23 Graphical Representation of various schemes for the 76


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month of November-07


month of December-07

77

INTRODUCTION


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INTRODUCTION TO MUTUAL FUND

Mutual fund is a trust that pools money from a group of investors (sharing common

financial goals) and invest the money thus collected into asset classes that match the stated

investment objectives of the scheme. Since the stated investment objective of a mutual fund

scheme generally forms the basis for an investor's decision to contribute money to the pool,

a mutual fund can not deviate from its stated objectives at any point of time.

Every Mutual Fund is managed by a fund manager, who using his investment management

skills and necessary research works ensures much better return than what an investor can

manage on his own. The capital appreciation and other incomes earned from these

investments are passed on to the investors (also known as unit holders) in proportion of the

number of units they own.


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1

When an investor subscribes for the units of a mutual fund, he becomes part owner of the

assets of the fund in the same proportion as his contribution amount put up with the corpus

(the total amount of the fund). Mutual Fund investor is also known as a mutual fund

shareholder or a unit holder.

Any change in the value of the investments made into capital market instruments (such as

shares, debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV is

defined as the market value of the Mutual Fund scheme's assets net of its liabilities. NAV

of a scheme is calculated by dividing the market value of scheme's assets by the total

number of units issued to the investors.

ADVANTAGES OF MUTUAL FUND

1. Portfolio Diversification: Mutual Funds invest in a well-diversified portfolio of

securities which enables investor to hold a diversified investment portfolio (whether the

amount of investment is big or small).


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2. Professional Management: Fund manager undergoes through various research works

and has better investment management skills which ensure higher returns to the investor

than what he can manage on his own.

3. Less Risk: Investors acquire a diversified portfolio of securities even with a small

investment in a Mutual Fund. The risk in a diversified portfolio is lesser than investing in

merely 2 or 3 securities.

4. Low Transaction Costs: Due to the economies of scale (benefits of larger volumes),

mutual funds pay lesser transaction costs. These benefits are passed on to the investors.

5. Liquidity: An investor may not be able to sell some of the shares held by him veryeasily and quickly, whereas units of a mutual fund are far more liquid.

2

6. Choice of Schemes: Mutual funds provide investors with various schemes with different

investment objectives. Investors have the option of investing in a scheme having a

correlation between its investment objectives and their own financial goals. These schemes

further have different plans/options

7. Transparency: Funds provide investors with updated information pertaining to the

markets and the schemes. All material facts are disclosed to investors as required by the

regulator.

8. Flexibility: Investors also benefit from the convenience and flexibility offered by

Mutual Funds. Investors can switch their holdings from a debt scheme to an equity scheme

and vice-versa. Option of systematic (at regular intervals) investment and withdrawal is

also offered to the investors in most open-end schemes.


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9. Safety: Mutual Fund industry is part of a well-regulated investment environment where

the interests of the investors are protected by the regulator. All funds are registered with

SEBI and complete transparency is forced.

DISADVANTAGES OF MUTUAL FUND

1.Costs Control Not in the Hands of an Investor: Investor has to pay investment

management fees and fund distribution costs as a percentage of the value of his investments

(as long as he holds the units), irrespective of the performance of the fund.

3

2. No Customized Portfolios: The portfolio of securities in which a fund invests is a

decision taken by the fund manager. Investors have no right to interfere in the decision

making process of a fund manager, which some investors find as a constraint in achieving

their financial objectives.

3. Difficulty in Selecting a Suitable Fund Scheme: Many investors find it difficult to

select one option from the plethora of funds/schemes/plans available. For this, they may

have to take advice from financial planners in order to invest in the right fund to achieve

their objectives.

TYPES OF MUTUAL FUNDS

General Classification of Mutual Funds

Open-end Funds / Closed-end Funds

Open-end Funds:


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Funds that can sell and purchase units at any point in time are classified as Open-end

Funds. The fund size (corpus) of an open-end fund is variable (keeps changing) because of

continuous selling (to investors) and repurchases (from the investors) by the fund. An

open-end fund is not required to keep selling new units to the investors at all times but is

required to always repurchase, when an investor wants to sell his units. The NAV of an

open-end fund is calculated every day.

Closed-end Funds:

Funds that can sell a fixed number of units only during the New Fund Offer (NFO) period

are known as Closed-end Funds. The corpus of aClosed-end Fund remains unchanged at

4

all times. After the closure of the offer, buying and redemption of units by the investors

directly from the Funds is not allowed. However, to protect the interests of the investors,

SEBI provides investors with two avenues to liquidate their positions:

1. Closed-end Funds are listed on the stock exchanges where investors can buy/sell

units from/to each other. The trading is generally done at a discount to the NAV of

the scheme. The NAV of a closed-end fund is computed on a weekly basis (updated

every Thursday).

2. Closed-end Funds may also offer "buy-back of units" to the unit holders. In this

case, the corpus of the Fund and its outstanding units do get changed.

Load Funds/no-load funds


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Load Funds:

Mutual Funds incur various expenses on marketing, distribution, advertising, portfolio

churning, fund managers salary etc. Many funds recover these expenses from the investors

in the form of load. These funds are known as Load Funds. A load fund may impose

following types of loads on the investors:

Entry Load Also known as Front-end load, it refers to the load charged to an

investor at the time of his entry into a scheme. Entry load is deducted from the

investors contribution amount to the fund.

5

Exit Load Also known as Back-end load, these charges are imposed on an

investor when he redeems his units (exits from the scheme). Exit load is deducted

from the redemption proceeds to an outgoing investor.

Deferred Load Deferred load is charged to the scheme over a period of time. Contingent Deferred Sales Charge (CDSS) In some schemes, the percentage of

exit load reduces as the investor stays longer with the fund. This type of load is

known as Contingent Deferred Sales Charge.

No-Load Fund:

All those funds that do not charge any of the above mentioned loads are known as No-load

Funds.

Tax-exempt Funds/ Non-Tax-exempt Funds

Tax-exempt Funds:


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Funds that invest in securities free from tax are known as Tax-exempt Funds. All open-end

equity oriented funds are exempt from distribution tax (tax for distributing income to

investors). Long term capital gains and dividend income in the hands of investors are tax-

free.

Non-Tax-exempt Funds:

Funds that invest in taxable securities are known as Non-Tax-exempt Funds. In India, all

funds, except open-end equity oriented funds are liable to pay tax on distribution income.

Profits arising out of sale of units by an investor within 12 months of purchase are

6

categorized as short-term capital gains, which are taxable. Sale of units of an equity

oriented fund is subject to Securities Transaction Tax (STT). STT is deducted from the

redemption proceeds to an investor

1. Equity Funds:

Equity funds are considered to be the more risky funds as compared to other fund types,

but they also provide higher returns than other funds. It is advisable that an investor

looking to invest in an equity fund should invest for long term i.e. for 3 years or more.

There are different types of equity funds each falling into different risk bracket. In the order

of decreasing risk level, there are following types of equity funds:

(1)Aggressive Growth Funds: In Aggressive Growth Funds, fund managers aspire for

maximum capital appreciation and invest in less researched shares of speculative nature.

Because of these speculative investments Aggressive Growth Funds become more volatile

and thus, are prone to higher risk than other equity funds.


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a. Growth Funds: Growth Funds also invest for capital appreciation (with time

horizon of 3 to 5 years) but they are different from Aggressive Growth Funds in the

sense that they invest in companies that are expected to outperform the market in

the future. Without entirely adopting speculative strategies, Growth Funds invest in

those companies that are expected to post above average earnings in the future.

b. Speciality Funds: Speciality Funds have stated criteria for investments and their

portfolio comprises of only those companies that meet their criteria. Criteria for

some

7

speciality funds could be to invest/not to invest in particular regions/companies. Speciality

funds are concentrated and thus, are comparatively riskier than diversified funds. There are

following types of speciality funds:

1. Sector Funds: Equity funds that invest in a particular sector/industry of the market areknown as Sector Funds. The exposure of these funds is limited to a particular sector (say

Information Technology, Auto, Banking, Pharmaceuticals or Fast Moving Consumer

Goods) which is why they are more risky than equity funds that invest in multiple sectors.

2. Foreign Securities Funds: Foreign Securities Equity Funds have the option to invest in

one or more foreign companies. Foreign securities funds achieve international

diversification and hence they are less risky than sector funds. However, foreign securities

funds are exposed to foreign exchange rate risk and country risk.


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3. Mid-Cap or Small-Cap Funds: Funds that invest in companies having lower market

capitalization than large capitalization companies are called Mid-Cap or Small-Cap Funds.

Market capitalization of Mid-Cap companies is less than that of big, blue chip companies

(less than Rs. 2500 crores but more than Rs. 500 crores) and Small-Cap companies have

market capitalization of less than Rs. 500 crores. Market Capitalization of a company can

be calculated by multiplying the market price of the company's share by the total number of

its outstanding shares in the market. The shares of Mid-Cap or Small-Cap Companies are

not as liquid as of Large-Cap Companies which gives rise to volatility in share prices of

these companies and consequently, investment gets risky.

8

4. Diversified Equity Funds: Except for a small portion of investment in liquid money

market, diversified equity funds invest mainly in equities without any concentration on a

particular sector(s). These funds are well diversified and reduce sector-specific or

company-specific risk. However, like all other funds diversified equity funds too are

exposed to equity market risk. One prominent type of diversified equity fund in India is

Equity Linked Savings Schemes (ELSS). As per the mandate, a minimum of 90% of

investments by ELSS should be in equities at all times. ELSS investors are eligible to claim

deduction from taxable income (up to Rs 1 lakh) at the time of filing the income tax return.

ELSS usually has a lock-in period and in case of any redemption by the investor before the

expiry of the lock-in period makes him liable to pay income tax on such income(s) for

which he may have received any tax exemption(s) in the past.


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c. Equity Index Funds: Equity Index Funds have the objective to match the

performance of a specific stock market index. The portfolio of these funds

comprises of the same companies that form the index and is constituted in the same

proportion as the index. Equity index funds that follow broad indices (like S&P

CNX Nifty, Sensex) are

d. Less risky than equity index funds that follow narrow sectoral indices (like

BSEBANKEX or CNX Bank Index etc). Narrow indices are less diversified and

therefore, are more risky.

2.Debt/IncomeFunds:

Funds that invest in medium to long-term debt instruments issued by private companies,

banks, financial institutions, governments and other entities belonging to various sectors

9

(like infrastructure companies etc.) are known as Debt / Income Funds. Debt funds are low

risk profile funds that seek to generate fixed current income (and not capital appreciation)to investors. In order to ensure regular income to investors, debt (or income) funds

distribute large fraction of their surplus to investors. Although debt securities are generally

less risky than equities, they are subject to credit risk (risk of default) by the issuer at the

time of interest or principal payment. To minimize the risk of default, debt funds usually

invest in securities from issuers who are rated by credit rating agencies and are considered

to be of "Investment Grade". Debt funds that target high returns are more risky. Based on

different investment objectives, there can be following types of debt funds:

a. Diversified Debt Funds: Debt funds that invest in all securities issued by entities

belonging to all sectors of the market are known as diversified debt funds. The best


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feature of diversified debtfunds is that investments are properly diversified into all

sectors which results in risk reduction. Any loss incurred, on account of default by a

debt issuer, is shared by all investors which further reduces risk for an individual

investor.

b. Focused Debt Funds: Unlike diversified debt funds, focused debt funds are narrow

focus funds that are confined to investments in selective debt securities, issued by

companies of a specific sector or industry or origin. Some examples of focused debt

funds are sector, specialized and offshore debt funds, funds that invest only in Tax

Free Infrastructure or Municipal Bonds. Because of their narrow orientation, focuseddebt

10

c. funds are more risky as compared to diversified debt funds. Although not yetavailable in India, these funds are conceivable and may be offered to investors very

soon.

d. Assured Return Funds: Although it is not necessary that a fund will meet its

objectives or provide assured returns to investors, but there can be funds that come

with a lock-in period and offer assurance of annual returns to investors during the

lock-in period. Any shortfall in returns is suffered by the sponsors or the Asset

Management Companies (AMCs). These funds are generally debt funds and provide

investors with a low-risk investment opportunity. However, the security of

investments depends upon the net worth of the guarantor (whose name is specified in


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advance on the offer document). To safeguard the interests of investors, SEBI permits

only those funds to offer assured return schemes whose sponsors have adequate net-

worth to guarantee returns in the future. In the past, UTI had offered assured return

schemes (i.e. Monthly Income Plans of UTI) that assured specified returns to

investors in the future. UTI was not able to fulfill its promises and faced large

shortfalls in returns. Eventually, government had to intervene and took over UTI's

payment obligations on itself. Currently, no AMC in India offers assured return

schemes to investors, though possible.

e. Fixed Term Plan Series: Fixed Term Plan Series usually are closed-end schemeshaving short term maturity period (of less than one year) that offer a series of plans

and issue units to investors at regular intervals. Unlike closed-end funds, fixed term

plans are not listed on the exchanges. Fixed term plan series usually invest in debt /

income schemes and target short-term investors. The objective of fixed term plan

schemes is to

11

f. Gratify investors by generating some expected returns in a short period.

g. 1.Open-end | 2.Closed-end 3.GiltFunds

Also known as Government Securities in India, Gilt Funds invest in government

papers (named dated securities) having medium to long term maturity period. Issued

by the Government of India, these investments have little credit risk (risk of default)

and provide safety of principal to the investors. However, like all debt funds, gilt


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funds too are exposed to interest rate risk. Interest rates and prices of debt securities

are inversely related and any change in the interest rates results in a change in the

NAV of debt/gilt funds in an opposite direction.

4. Money Market/Liquid Funds:

Money market / liquid funds invest in short-term (maturing within one year) interest

bearing debt instruments. These securities are highly liquid and provide safety of

investment, thus making money market / liquid funds the safest investment option when

compared with other mutual fund types. However, even money market / liquid funds are

exposed to the interest rate risk. The typical investment options for liquid funds include

Treasury Bills (issued by governments), Commercial papers (issued by companies) and

Certificates of Deposit (issued by banks).

5. Hybrid Funds:

As the name suggests, hybrid funds are those funds whose portfolio includes a blend of

equities, debts and money market securities. Hybrid funds have an equal proportion of12

debt and equity in their portfolio. There are following types of hybrid funds in India:

a. Balanced Funds The portfolio of balanced funds include assets like debt

securities, convertible securities, and equity and preference shares held in a

relatively equal proportion. The objectives of balanced funds are to reward

investors with a regular income, moderate capital appreciation and at the same time

minimizing the risk of capital erosion. Balanced funds are appropriate for

conservative investors having a long term investment horizon.


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b. Growth-and-Income Funds Funds that combine features of growth funds and

income funds are known as Growth-and-Income Funds. These funds invest in

companies having potential for capital appreciation and those known for issuing

high dividends. The level of risks involved in these funds is lower than growth

funds and higher than income funds.

6. Commodity Funds:

Those funds that focus on investing in different commodities (like metals, food grains,

crude oil etc.) or commodity companies or commodity futures contracts are termed as

Commodity Funds. A commodity fund that invests in a single commodity or a group of

commodities is a specialized commodity fund and a commodity fund that invests in all

available commodities is a diversified commodity fund and bears less risk than a

specialized commodity fund. Precious Metals Fund and Gold Funds (that invest in gold,

gold futures or shares of gold mines) are common examples of commodity funds.

13

7. Real Estate Funds:

Funds that invest directly in real estate or lend to real estate developers or invest in

shares/securitized assets of housing finance companies, are known as Specialized Real

Estate Funds. The objective of these funds may be to generate regular income for investors

or capital appreciation.


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8. Exchange Traded Funds (ETF):

Exchange Traded Funds provide investors with combined benefits of a closed-end and an

open-end mutual fund. Exchange Traded Funds follow stock market indices and are traded

on stock exchanges like a single stock at index linked prices. The biggest advantage offered

by these funds is that they offer diversification, flexibility of holding a single share

(tradable at index linked prices) at the same time. Recently introduced in India, these funds

are quite popular abroad.

9. Fund of Funds: Mutual funds that do not invest in financial or physical assets, but do

invest in other mutual fund schemes offered by different AMCs, are known as Fund ofFunds. Fund of Funds maintain a portfolio comprising of units of other mutual fund

schemes, just like conventional mutual funds maintain a portfolio comprising of

equity/debt/money market instruments or non financial assets. Fund of Funds provide

investors with an added advantage of diversifying into different mutual fund schemes with

even a small amount of investment, which further helps in diversification of risks.

However, the expenses of Fund of Funds are quite high on account of compounding

expenses of investments into different mutual fund schemes.

14


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LiteratureReview


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HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the

initiative of the Government of India and Reserve Bank the. The history of mutual funds in India can

be broadly divided into four distinct phases

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 crores of

assets under management.

Second Phase 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and

Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBIMutual Fund was the first non- UTI Mutual Fund established in June 1987 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 established its mutual

fund in June 1989 while GIC had set up its mutual fund in December 1990.

At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores.

15


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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 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 crores. The Unit Trust of

India with Rs.44,541 crores of assets under management was way ahead of other mutual funds.

Fourth Phase since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into

two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under

management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of

US 64 scheme, assured return and certain other schemes. 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.

16

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


30/98

UTI which had in March 2000 more than Rs.76,000 crores of assets under management 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 crores under 421 schemes.

The graph indicates the growth of assets over the years.

GROWTH IN ASSETS UNDER MANAGEMENT

Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of the Unit Trust

of India effective from February 2003. The Assets under management of the Specified Undertaking

of the Unit Trust of India has therefore been excluded from the total assets of the industry as a whole

from February 2003 onward

17

INDUSTRY PROFILE


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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 then invested in capital market instruments such as

shares, debentures and other securities. The income earned through these investments and the capital

appreciations realized are 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

Fig-1

18


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Organizations Of Mutual Funds:

There are many entities involved and the diagram below illustrates the organizational set up of a mutual fund

Organization of a Mutual Fund

Fig-2

ADVANTAGES OF MUTUAL FUNDS:

The advantages of investing in a Mutual Fund are:

Professional Management

Diversification

Convenient and Flexibility

Low Costs and Transparency

Liquidity

Choice of schemes

Tax benefits

Well regulated

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Disadvantage Of Mutual Funds:

No Tailor Made Portfolio

Restrictive Gains

Risk

Types of Mutual Funds:

Wide varieties of Mutual Fund Schemes exist to cater to the needs such

as financial position, risk tolerance and return expectations etc. The table below

gives an overview into the existing types of schemes in the Industry

Mutual Fund Schemes:

By Structure

Open-ended Schemes

Closed-ended Schemes

Interval Schemes

By Investment

Growth Schemes

Income Schemes

Balanced Schemes

Money Market Schemes

Other Schemes

Tax saving schemes

Special Schemes1. Index Schemes

2. Sector Special Schemes

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COMPANY PROFILE

VISION

To be a dominant player in the Indian mutual fund space, recognized for its high levels of ethical and

professional conduct and a commitment towards enhancing investor interests.

SPONSORS

Housing Development Finance Corporation Limited (HDFC)

HDFC was incorporated in 1977 as the first specialised mortgage company in India. HDFC provides

financial assistance to individuals, corporates and developers for the purchase or construction of

residential housing. It also provides property related services (e.g. property identification, sales

services and valuation), training and consultancy. Of these activities, housing finance remains the

dominant activity. HDFC has a client base of around 9.5 lac borrowers, around 1 million depositors,

over 91,000 shareholders and 50,000 deposit agents, as at June 30, 2007. HDFC has raised funds

from international agencies such as the World Bank, IFC (Washington), USAID, DEG, ADB and

KfW, international syndicated loans, domestic term loans from banks and insurance companies,

bonds and deposits. HDFC has received the highest rating for its bonds and deposits program for the

twelfth year in succession. HDFC Standard Life Insurance Company Limited, promoted by HDFC

was the first life insurance

21


35/98

company in the private sector to be granted a Certificate of Registration (on October 23, 2000)

by the Insurance Regulatory and Development Authority to transact life insurance business in India.

Standard Life Investments Limited

The Standard Life Assurance Company was established in 1825 and has considerable experience in

global financial markets. The company was present in the Indian life insurance market from 1847 to

1938 when agencies were set up in Kolkata and Mumbai. The company re-entered the Indian market

in 1995, when an agreement was signed with HDFC to launch an insurance joint venture. On April

2006, the Board of The Standard Life Assurance Company recommended that it should demutualiseand Standard Life plc float on the London Stock Exchange. At a Special General Meeting held in

May voting members overwhelmingly voted in favour of this. The Court of Session in Scotland

approved this in June and Standard Life plc floated on the London Stock Exchange on 10th July

2006. Standard Life Investments was launched as an investment management company in 1998. It is

a wholly owned subsidiary of Standard Life Investments (Holdings) Limited, which in turn is a

wholly owned subsidiary of Standard Life plc. Standard Life Investments is a leading asset

management company, with approximately US$ 282 billion as at June 30, 2007, of assets under

management. The company operates in the UK, Canada, Hong Kong, China, Korea, Ireland and the

USA to ensure it is able to form a truly global investment view. In order to meet the different needs

and risk profiles of its clients, Standard Life Investments Limited manages a diverse portfolio

covering all of the major markets world-wide, which includes a range of private and public equities,

22

government and company bonds, property investments and various derivative instruments. The


36/98

company's current holdings in UK equities account for approximately 1.8% of the market

capitalisation of the London Stock Exchange.

MANAGEMENT :

HDFC Trustee Company Limited:

a company incorporated under the Companies Act, 1956 is the Trustee to the Mutual Fund vide the

Trust deed dated June 8, 2000, as amended from time to time. HDFC Trustee Company Limited is a

wholly owned subsidiary of HDFC Limited.

HDFC Asset Management Company Limited (AMC):

was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to actas an Asset Management Company for the Mutual Fund by SEBI on 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. In terms of the Investment Management Agreement,

the Trustee has appointed HDFC Asset Management Company Limited to manage the Mutual Fund.

The paid up capital of the AMC is Rs. 45.161 crore.

The present equity shareholding pattern of the AMC is as follows:

Particulars % of the paid up equity capital

HDFC 60

Standard Life Investments Limited 40

Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund, following a review of

its overall strategy, had decided to divest its Asset Management business in India.

23

The AMC had entered into an agreement with ZIC to acquire the said business, subject to


37/98

necessary regulatory approvals. On obtaining the regulatory approvals, the Schemes of Zurich India

Mutual Fund has now migrated to HDFC Mutual Fund on June 19, 2003.

The AMC is managing 24 open-ended schemes of the Mutual Fund viz. HDFC Growth Fund (HGF),

HDFC Balanced Fund (HBF), HDFC Income Fund (HIF), HDFC Liquid Fund (HLF), HDFC Long

Term Advantage Fund (HLTAF), HDFC Children's Gift Fund (HDFC CGF), HDFC Gilt Fund

(HGILT), HDFC Short Term Plan (HSTP), HDFC Index Fund, HDFC Floating Rate Income Fund

(HFRIF), HDFC Equity Fund (HEF), HDFC Top 200 Fund (HT200), HDFC Capital Builder Fund

(HCBF), HDFC TaxSaver (HTS), HDFC Prudence Fund (HPF), HDFC High Interest Fund (HHIF),HDFC Cash Management Fund (HCMF), HDFC MF Monthly Income Plan (HMIP), HDFC Core &

Satellite Fund (HCSF), HDFC Multiple Yield Fund (HMYF), HDFC Premier Multi-Cap Fund

(HPMCF), HDFC Multiple Yield Fund . Plan 2005 (HMYF-Plan 2005), HDFC Quarterly Interval

Fund (HQIF) and HDFC Arbitrage Fund (HAF).

The AMC is also managing 8 closed ended Schemes of the HDFC Mutual Fund viz. HDFC Long

Term Equity Fund, HDFC Mid-Cap Opportunities Fund, HDFC Fixed Maturity Plans, HDFC Fixed

Maturity Plans - Series II, HDFC Fixed Maturity Plans - Series III, HDFC Fixed Maturity Plans -

Series IV, HDFC Fixed Maturity Plans - Series V and HDFC Fixed Maturity Plans - Series VI.

The AMC is also providing portfolio management / advisory services and such activities are not in

conflict with the activities of the Mutual Fund. The AMC has renewed its registration

24

from SEBI vide Registration No. - PM / INP000000506 dated December 8, 2006 to act as a Portfolio

Manager under the SEBI (Portfolio Managers) Regulations, 1993. The Certificate of Registration is

valid from January 1, 2007 to December 31, 2009.

THE TRUSTEE


38/98

HDFC Trustee Company Limited, a company incorporated under the Companies Act, 1956 is the

Trustee to HDFC Mutual Fund vide the Trust deed dated June 8, 2000, as amended from time to

time. HDFC Trustee Company Ltd is wholly owned subsidiary of HDFC

The Board of Directors of HDFC Trustee company Limited consists of the following eminent

persons.

o Mr. James Aird

o Mr. Anil Kumar Hirjee

o Mr. Shishir K. Diwanji

o Mr. Ranjan Sanghi

o Mr. V. Srinivasa Rangan

HDFC Asset Management Company Limited (AMC)

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 June 30, 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.

In terms of the Investment Management Agreement, the Trustee has appointed the AMC to manage

the Mutual Fund.

25

As per the terms of the Investment Management Agreement, the AMC will conduct the operations of

the Mutual Fund and manage assets of the schemes, including the schemes launched from time to

time.

The present equity shareholding pattern of the AMC is as follows:


39/98

Particulars % of the paid up equity capital

Housing Development Finance Corporation Limited 60

Standard Life Investments Limited 40

Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund, following a review of

its overall strategy, had decided to divest its Asset Management business in India. The AMC had

entered into an agreement with ZIC to acquire the said business, subject to necessary regulatory

approvals.

On obtaining the regulatory approvals, the following Schemes of Zurich India Mutual Fund have

migrated to HDFC Mutual Fund on June 19, 2003. These Schemes have been renamed as follows:The AMC is also managing 8 closed ended Schemes of the HDFC Mutual Fund viz. HDFC Long

Term Equity Fund, HDFC Mid-Cap Opportunities Fund, HDFC Fixed Maturity Plans, HDFC Fixed

Maturity Plans - Series II, HDFC Fixed Maturity Plans - Series III, HDFC Fixed Maturity Plans -

Series IV, HDFC Fixed Maturity Plans - Series V and HDFC Fixed Maturity Plans - Series VI.

The AMC is also providing portfolio management / advisory services and such activities are not in

conflict with the activities of the Mutual Fund. The AMC has renewed its registration

26

from SEBI vide Registration No. - PM / INP000000506 dated December 8, 2006 to act as a Portfolio

Manager under the SEBI (Portfolio Managers) Regulations, 1993. The Certificate of Registration is

valid from January 1, 2007 to December 31, 2009.

The Board of Directors of the HDFC Asset Management Company Limited (AMC) consists of

the following eminent persons.

o Mr. Deepak S Parekh


40/98

o Mr. N. Keith Skeoch

o Mr. Keki M. Mistry

o Mr Mark Connolly

o Mr. Hoshang S. Billimoria

o Mr. Humayun Dhanrajgir

o Mr. P. M. Thampi

o Dr. Deepak B Phatak

o Mr Rajeshwar Raj Bajaaj

o Mr. Vijay Merchant

o Ms. Renu S. Karnad

o Mr. Milind Barve

HDFC Mutual Fund Products

Schemes

Equity Funds

HDFC Infrastructure Fund HDFC Arbitrage Fund

27

HDFC Capital Builder Fund

HDFC Core & Satellite Fund

HDFC Equity Fund

HDFC Growth Fund

HDFC Long Term Equity Fund

HDFC Premier Multi-Cap Fund

HDFC Top 200 Fund


41/98

HDFC Mid-Cap Opportunities Fund

HDFC Index Fund

HDFC Index Fund Nifty Plan

HDFC Index Fund SENSEX Plan

HDFC Index Fund SENSEX Plus Plan

Equity Linked Savings Scheme

HDFC Long Term Advantage Fund

HDFC TaxSaver

Balanced Funds

HDFC Balanced Fund

HDFC Children's Gift Fund Investment Plan

HDFC Children's Gift Fund Savings Plan

HDFC Prudence Fund

Debt Funds

HDFC Cash Management Fund - Savings Plus Plan

28

HDFC Floating Rate Income Fund Long Term Plan

HDFC Floating Rate Income Fund Short Term Plan - Retail Option

HDFC Gilt Fund Short Term Plan

HDFC Gilt Fund Long Term Plan

HDFC High Interest Fund

HDFC High Interest Fund - Short Term Plan

HDFC Income Fund


42/98

HDFC MF Monthly Income Plan - Short Term Plan

HDFC MF Monthly Income Plan - Long Term Plan

HDFC Multiple Yield Fund

HDFC Multiple Yield Fund Plan 2005

HDFC Short Term Plan

HDFC Quarterly Interval Fund - Plan A

HDFC Quarterly Interval Fund - Plan B

HDFC Quarterly Interval Fund - Plan C

Liquid Funds

HDFC Cash Management Fund - Call Plan

HDFC Cash Management Fund - Savings Plan

HDFC Liquid Fund

HDFC Liquid Fund - PREMIUM PLAN

HDFC Liquid Fund - PREMIUM PLUS PLAN

29

Bombay Stock Exchange (BSE)

About the Bombay Stock Exchange


43/98

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a

rich heritage. Popularly known as "BSE", it was established as "The Native

Share Stock Brokers Association" in 1875. It is the first stock exchange in the

country to obtain permanent recognition in 1956 from the Government of India

under the Securities Contracts (Regulation) Act, 1956.The Exchange's pivotal

and pre-eminent role in the development of the Indian capital market is widely

recognized and its index, SENSEX, is tracked worldwide. Earlier an Association

of Persons (AOP), the Exchange is now a demutualised and corporative entity

incorporated under the provisions of the Companies Act, 1956,

30

BSE(Corporatisation and Demutualization) Scheme, 2005 notified by the

Securities and Exchange Board of India (SEBI).

With demutualization, the trading rights and ownership rights have been de-

linked effectively addressing concerns regarding perceived and real conflicts of

interest. The Exchange is professionally managed under the overall direction of

the Board of Directors. The Board comprises eminent professionals,

representatives of Trading Members and the Managing Director of the


44/98

Exchange. The Board is inclusive and is designed to benefit from the

participation of market intermediaries.

In terms of organisation structure, the Board formulates larger policy issues and

exercises over-all control. The committees constituted by the Board are broad-

based. The day-to-day operations of the Exchange are managed by the

Managing Director and a management team of professionals.

31

The Exchange has a nation-wide reach with a presence in 417 cities and towns

of India. The systems and processes of the Exchange are designed to

safeguard market integrity and enhance transparency in operations. During the

year 2004-2005, the trading volumes on the Exchange showed robust growth.

The Exchange provides an efficient and transparent market for trading in

equity, debt instruments and derivatives. The BSE's On Line Trading System

(BOLT) is a proprietory system of the Exchange and is BS 7799-2-2002


45/98

certified. The surveillance and clearing & settlement functions of the Exchange

are ISO 9001:2000 certified.

32

History of the Bombay Stock Exchange :

The Bombay Stock Exchange is known as the oldest exchange in Asia. It traces itshistory to the 1850s, when stockbrokers would gather under banyan trees in front of

Mumbai's Town Hall. The location of these meetings changed many times, as the

number of brokers constantly increased. The group eventually moved to Dalal Street

in 1874 and in 1875 became an official organization known as 'The Native Share &

Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be

recognized by the Indian Government under the Securities Contracts Regulation

Act. The Bombay Stock Exchange developed the BSE Sensex in 1986,

giving the BSE a means to measure overall performance of the


46/98

exchange. In 2000 the BSE used this index to open its derivatives

market, trading Sensex futures contracts. The development of Sensex

options along with equity derivatives followed in 2001 and 2002,

expanding the BSE's trading platform. Historically an open-cry floor trading

exchange, the Bombay Stock Exchange switched to an electronic trading

system in 1995. It took the exchange only fifty days to make this transition.

33

OBJECTIVES

ANDMETHODOLOGY


47/98

OBJECTIVES

Statement of the problem:

The study totally attempts to know the performance of diversified funds with reference to

HDFC Mutual Fund.

Objectives of the Project:

The various objectives of the study are

Primary Objective:

To evaluate the performance of diversified equity funds for the last 1 year.

To find out the perception of investors towards various mutual funds options.

Secondary Objectives:

To know concept of mutual fund industry in India.

To get exposure about mutual fund industry

To find out which funds is performing well.

Study the volatility in Fidelity mutual fund for the period July-2007 to dec-2007

To measure return and risk of investing in HDFC mutual fund

To measure the performance of HDFC mutual fund using Sharpes Model, Treynors

Model.

To find out the correlation of HDFC mutual fund

To measure the fund performance for (July 2007-Dec-2007)


48/98

34

RESEARCH METHODOLOGY

Research design or research methodology is the procedure of collecting, analyzing and interpreting

the data to diagnose the problem and react to the opportunity in such a way where the costs can be

minimized and the desired level of accuracy can be achieved to arrive at a particular conclusion.

The methodology used in the study for the completion of the project and the fulfillment of the

project objectives, is as follows:

Collection of Data:

Data can be collected on two types

1. Primary data

2. Secondary data.

Primary Data:

In this method I follow a structured questionnaire and this can be taken to Investors

perception towards various mutual funds schemes.

Secondary data:

In this method I collected the performance reports of the funds, company profile, Industry

profile, fund fact sheets, journals, and some information through internet.

LIMITATIONS

This study is restricted to Diversified funds only.

Different people may interpret the same analysis in different

ways.

The study is made with in the geographical boundaries of Hyderabad only.

People may not be willing to spend their time in answering the

Questions.


49/98

35


50/98

DATA ANALYSISAND

INTERPRETATION

Table:1Calculation of Risk of HDFC Tax saver Fund for the month of July-07

Date

NetAssetValue

Closingprice S. No.

Returns(y)

Returns(x)

Returns-Mean

(Returns-Mean)^2 x^2 x*y


51/98

2-Jul-07 66.1314664.2

6

3-Jul-07 66.77 14806.51 1 0.98 0.97 0.78 0.61 0.94 0.95

4-Jul-07 66.6114880.2

4 2 -0.25 0.50 -0.45 0.20 0.25 -0.13

5-Jul-07 66.27 14861.89 3 -0.50 -0.12 -0.70 0.49 0.02 0.06

6-Jul-07 67.03 14964.12 4 1.14 0.69 0.95 0.90 0.47 0.78

9-Jul-07 67.42 15045.73 5 0.59 0.55 0.39 0.16 0.30 0.32

10-Jul-07 67.16 15009.88 6 -0.39 -0.24 -0.58 0.34 0.06 0.09

11-Jul-07 66.86 14910.62 7 -0.44 -0.66 -0.63 0.40 0.44 0.29

12-Jul-07 67.61 15092.04 8 1.11 1.22 0.92 0.84 1.48 1.35

13-Jul-07 67.97 15272.72 9 0.54 1.20 0.34 0.12 1.43 0.64

16-Jul-07 67.37 15311.22 10 -0.89 0.25 -1.08 1.17 0.06 -0.22

17-Jul-07 67.25 15289.82 11 -0.18 -0.14 -0.37 0.14 0.02 0.03

18-Jul-07 67.07 15301.17 12 -0.26 0.07 -0.46 0.21 0.01 -0.02

19-Jul-07 67.91 15550.13 13 1.25 1.63 1.05 1.11 2.65 2.03

20-Jul-07 68.3415565.5

5 14 0.64 0.10 0.45 0.20 0.01 0.06

23-Jul-07 68.96 15732.2 15 0.91 1.07 0.71 0.51 1.15 0.97

24-Jul-07 69.09 15794.92 16 0.18 0.40 -0.02 0.00 0.16 0.07

25-Jul-07 68.71 15699.33 17 -0.55 -0.61 -0.74 0.55 0.37 0.33

26-Jul-07 69.15 15776.31 18 0.65 0.49 0.46 0.21 0.24 0.32

27-Jul-07 67.63 15234.57 19 -2.20 -3.43 -2.39 5.73 11.79 7.55

30-Jul-07 67.43 15260.91 20 -0.30 0.17 -0.49 0.24 0.03 -0.05

31-Jul-07 68.82 15550.99 21 2.05 1.90 1.86 3.45 3.61 3.90

Average 0.19 Variance 0.84 Sum

Sum 4.08 6.00 Risk 0.91 25.47 19.34

36

Returns of HDFC Tax Saver Fund for the month of july-07

Risk free Rate 0.06

n*sum x y 406.09

Sum x 6.00


52/98

Sum y 4.08

n*sumx^2 534.97

sumx^2 648.96

Beta -3.35

Returns 0.19

Risk 0.91

Shrpes 0.15

Treynor -0.04

Graph:1Graphical Representation of HDFC Tax Saver Dividend Plan and Bse Returns for the Month

of JUly-07

Graphical Representationfor theHDFCTaxsaverDividendPlan&BSEReturns

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

1 3 5 7 9 11 13 15 17 19 21

Time

Ret

Returns(y)

Returns(x)

for the Month of July are not much affected by change in market environment, as the Beta

is -3.35 which is less than the market value of Beta; the fund is not an antagonistic fund. It

generated returns 0.15.

It has the Sharpe ratio giving a risk Premium of 0.91 for every unit of Standard Deviation

Risk.

It has the Trynors ratio generating -0.04 returns above the risk free rate of return for every

unit of Systematic risk.

37

Table:2Calculation of Risk of HDFC Tax saver Fund for the month of August07

Date

NetAssetValue

Closingprice S. No.

Returns(y) Returns(x)

Returns-Mean



53/98

1-Aug-07 66.54 14935.77 1 -3.30 -3.96 -3.41 11.62 15.65 13.06

2-Aug-07 67.07 14985.7 2 0.79 0.33 0.68 0.47 0.11 0.27

3-Aug-07 67.82 15138.4 3 1.11 1.02 1.00 1.01 1.04 1.13

6-Aug-07 66.97 14903.03 4 -1.25 -1.55 -1.36 1.85 2.42 1.95

7-Aug-07 67.22 14932.77 5 0.38 0.20 0.27 0.07 0.04 0.08

8-Aug-07 68.45 15307.98 6 1.83 2.51 1.72 2.96 6.31 4.59

9-Aug-07 67.45 15100.15 7 -1.46 -1.36 -1.57 2.46 1.84 1.98

10-Aug-07 66.94 14868.25 8 -0.76 -1.54 -0.87 0.76 2.36 1.17

13-Aug-07 67.37 15017.21 9 0.65 1.00 0.54 0.29 1.00 0.65

14-Aug-07 67.37 15000.91 10 0.00 -0.11 -0.11 0.01 0.01 0.00

16-Aug-07 64.97 14358.21 11 -3.57 -4.28 -3.67 13.50 18.36 15.28

17-Aug-07 64.14 14141.52 12 -1.28 -1.51 -1.39 1.94 2.28 1.94

20-Aug-07 65.04 14427.55 13 1.41 2.02 1.30 1.68 4.09 2.84

21-Aug-07 63.11 13989.11 14 -2.96 -3.04 -3.07 9.43 9.23 9.00

22-Aug-07 63.70 14248.66 15 0.94 1.86 0.83 0.69 3.44 1.74

23-Aug-07 63.36 14163.98 16 -0.54 -0.59 -0.65 0.42 0.35 0.32

24-Aug-07 64.24 14424.87 17 1.39 1.84 1.28 1.65 3.39 2.57

27-Aug-07 65.87 14842.38 18 2.54 2.89 2.43 5.90 8.38 7.35

28-Aug-07 66.33 14919.19 19 0.69 0.52 0.58 0.33 0.27 0.36

29-Aug-07 66.38 14993.04 20 0.08 0.50 -0.03 0.00 0.25 0.04

30-Aug-07 66.97 15121.74 21 0.89 0.86 0.78 0.61 0.74 0.76

31-Aug-07 67.92 15318.6 22 1.42 1.30 1.31 1.72 1.69 1.85


Sum 2.29 2.87 Risk 1.51 67.61 55.86

38

Returns of HDFC Tax Saver Fund for the month of August07

Risk free Rate 0.06

n*sum x y 1229.01

Sum x 2.87


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Sum y 2.29

n*sumx^2 1487.37

Sumx^2 4570.82

Beta -0.40

Returns 0.11

Risk 1.51

Shrpes 0.03

Treynor -0.12

Graph:2

Graphical Representation of HDFC Tax Saver Dividend Plan and Bse Returns for the Month

of August-07

Graphical Representationfor theHDFCTaxsaver

DividendPlan&BSEReturns

-5.00

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

1 3 5 7 9 11 13 15 17 19 21

Time

Ret

Returns(y)

Returns(x)


Risk.It has the Trynors ratio generating -0.12 returns above the risk free rate of return for every


The Returns generated by HDFC Tax Saver Dividend Fund for the Month of August are not

much affected by change in market surroundings, as the Beta is -0.40 which is less than the

market value of Beta; the fund is not a destructive fund. It generated returns 0.03.

39

Table:3Calculation of Risk of HDFC Tax saver Fund for themonth of September-07

Date

NetAssetValue

Closingprice S. No.

Returns(y)

Returns(x)

Returns-Mean



55/98

3-Sep-07 68.30 15422.05 1 0.56 0.68 0.15 0.02 0.46 0.38

4-Sep-07 68.38 15465.4 2 0.12 0.28 -0.29 0.09 0.08 0.03

5-Sep-07 68.22 15446.15 3 -0.24 -0.12 -0.65 0.43 0.02 0.03

6-Sep-07 68.77 15616.31 4 0.81 1.10 0.40 0.16 1.21 0.89

7-Sep-07 68.91 15590.42 5 0.20 -0.17 -0.21 0.04 0.03 -0.03

10-Sep-07 69.02 15596.83 6 0.17 0.04 -0.24 0.06 0.00 0.01

11-Sep-07 68.79 15542.77 7 -0.34 -0.35 -0.76 0.57 0.12 0.12

12-Sep-07 68.66 15505.36 8 -0.18 -0.24 -0.60 0.36 0.06 0.04

13-Sep-07 69.13 15614.44 9 0.69 0.70 0.28 0.08 0.49 0.48

14-Sep-07 68.74 15603.8 10 -0.57 -0.07 -0.98 0.96 0.00 0.04

17-Sep-07 68.62 15504.43 11 -0.18 -0.64 -0.59 0.35 0.41 0.12

18-Sep-07 69.28 15669.12 12 0.97 1.06 0.55 0.31 1.13 1.03

19-Sep-07 70.96 16322.75 13 2.43 4.17 2.01 4.06 17.40 10.12

20-Sep-07 71.35 16347.95 14 0.55 0.15 0.14 0.02 0.02 0.08

21-Sep-07 71.95 16564.23 15 0.84 1.32 0.43 0.19 1.75 1.12

24-Sep-07 72.67 16845.83 16 1.00 1.70 0.59 0.35 2.89 1.71

25-Sep-07 72.50 16899.54 17 -0.23 0.32 -0.65 0.42 0.10 -0.07

26-Sep-07 72.80 16921.39 18 0.40 0.13 -0.01 0.00 0.02 0.05

27-Sep-07 73.16 17150.56 19 0.50 1.35 0.09 0.01 1.83 0.68

28-Sep-07 73.72 17291.1 20 0.76 0.82 0.35 0.12 0.67 0.63


Sum 8.25 12.25 Risk 0.66 28.69 17.44

40

Returns of HDFC Tax Saver Fund for the month of September-07

Risk free Rate 0.06

n*sum x y 348.89

Sum x 12.25


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Sum y 8.25

n*sumx^2 573.88

Sumx^2 823.35

Beta -0.99

Returns 0.41

Risk 0.66

Shrpes 0.54

Treynor -0.35

Graph:3


of September-07

Graphical RepresentationfortheHDFCTaxsaver


-1.00

0.00

1.00

2.00

3.00

4.00

5.00

1 3 5 7 9 11 13 15 17 19

Time

Ret

Returns(y)

Returns(x)




Risk.The Returns generated by HDFC Tax Saver Dividend Fund for the Month of September are

not much affected by change in market environment, as the Beta is -0.99 which is less than the

market value of Beta; the fund is not an aggressive fund. It generated returns 0.54.

41

Table:4 Calculation of Risk of HDFC Tax saver Fund for the month of October-07

Date

NetAssetValue

Closingprice S. No.


Returns-Mean


1-Oct-07 73.82 17328.62 1 0.14 0.22 -0.48 0.23 0.05 0.03


57/98

3-Oct-07 74.66 17847.04 2 1.14 2.99 0.52 0.27 8.95 3.40

4-Oct-07 74.71 17777.14 3 0.07 -0.39 -0.55 0.30 0.15 -0.03

5-Oct-07 74.87 17773.36 4 0.22 -0.02 -0.39 0.15 0.00 0.00

8-Oct-07 73.64 17491.39 5 -1.65 -1.59 -2.26 5.10 2.52 2.61

9-Oct-07 75.74 18280.24 6 2.85 4.51 2.24 5.00 20.34 12.85

10-Oct-07 76.83 18658.25 7 1.44 2.07 0.83 0.68 4.28 2.98

11-Oct-07 77.40 18814.07 8 0.75 0.84 0.13 0.02 0.70 0.62

12-Oct-07 76.44 18419.04 9 -1.25 -2.10 -1.86 3.47 4.41 2.62

15-Oct-07 79.08 19058.67 10 3.46 3.47 2.85 8.10 12.06 12.02

16-Oct-07 79.07 19051.86 11 -0.02 -0.04 -0.63 0.40 0.00 0.00

17-Oct-07 78.16 18715.82 12 -1.14 -1.76 -1.76 3.09 3.11 2.02

18-Oct-07 75.91 17998.39 13 -2.88 -3.83 -3.49 12.21 14.69 11.04

19-Oct-07 73.92 17559.98 14 -2.62 -2.44 -3.23 10.44 5.93 6.38

22-Oct-07 73.98 17613.99 15 0.07 0.31 -0.54 0.30 0.09 0.02

23-Oct-07 77.67 18492.84 16 4.99 4.99 4.38 19.18 24.90 24.92

24-Oct-07 78.50 18512.91 17 1.07 0.11 0.45 0.20 0.01 0.12

25-Oct-07 79.71 18770.89 18 1.55 1.39 0.94 0.88 1.94 2.16

26-Oct-07 81.97 19243.17 19 2.83 2.52 2.21 4.90 6.33 7.11

29-Oct-07 84.63 19977.67 20 3.25 3.82 2.64 6.94 14.57 12.40

30-Oct-07 83.89 19783.51 21 -0.87 -0.97 -1.49 2.21 0.94 0.85

31-Oct-07 83.59 19837.99 22 -0.36 0.28 -0.98 0.95 0.08 -0.10


Sum 12.89 14.15 Risk 2.01 126.00 103.97

42

Returns of HDFC Tax Saver Fund for the month of October-07Risk free Rate 0.06

n*sum x y 2287.37

Sum x 14.15

Sum y 12.89


58/98

n*sumx^2 2772.10

Sumx^2 15877.18

Beta -0.16

Returns 0.61

Risk 2.01

Shrpes 0.28

Treynor -3.45

Graph-4


of October-07



-5.00

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

6.00

1 3 5 7 9 11 13 15 17 19 21

Time

Re Returns(y)

Returns(x)

The Returns generated by HDFC Tax Saver Dividend Fund for the Month of October are nomuch affected by change in market conditions, as the Beta is -0.16 which is less than the market

value of Beta; the fund is not a forceful fund. It generated returns 0.28.It has the Sharpe ratio

giving a risk Premium of 2.01 for every unit of Standard Deviation Risk.



43

Table-5Calculation of Risk of HDFC Tax saver Fund for the month of November-07

Date

NetAssetValue

Closingprice S. No.


Returns-Mean


1-Nov-07 83.21 19724.35 1 -0.45 -0.57 -0.42 0.17 0.33 0.26

2-Nov-07 83.93 19976.23 2 0.87 1.28 0.90 0.81 1.63 1.11

5-Nov-07 83.10 19590.78 3 -1.00 -1.93 -0.96 0.92 3.72 1.92


59/98

6-Nov-07 82.28 19400.67 4 -0.98 -0.97 -0.95 0.90 0.94 0.95

7-Nov-07 81.99 19289.83 5 -0.36 -0.57 -0.32 0.10 0.33 0.20

8-Nov-07 80.75 19058.93 6 -1.51 -1.20 -1.48 2.19 1.43 1.81

12-Nov-07 80.12 18737.27 7 -0.77 -1.69 -0.74 0.55 2.85 1.31

13-Nov-07 81.30 19035.48 8 1.47 1.59 1.50 2.26 2.53 2.34

14-Nov-07 84.20 19929.06 9 3.58 4.69 3.61 13.05 22.04 16.79

15-Nov-07 84.61 19784.89 10 0.49 -0.72 0.52 0.27 0.52 -0.35

16-Nov-07 84.64 19698.36 11 0.03 -0.44 0.07 0.00 0.19 -0.01

19-Nov-07 85.70 19633.36 12 1.25 -0.33 1.28 1.64 0.11 -0.41

20-Nov-07 83.75 19280.8 13 -2.27 -1.80 -2.24 5.01 3.22 4.08

21-Nov-07 80.43 18602.62 14 -3.96 -3.52 -3.93 15.41 12.37 13.93

22-Nov-07 79.69 18526.32 15 -0.93 -0.41 -0.89 0.79 0.17 0.38

23-Nov-07 80.45 18852.87 16 0.96 1.76 0.99 0.99 3.11 1.69

26-Nov-07 81.99 19247.54 17 1.91 2.09 1.94 3.78 4.38 4.00

27-Nov-07 81.78 19127.73 18 -0.25 -0.62 -0.21 0.05 0.39 0.15

28-Nov-07 80.92 18938.87 19 -1.06 -0.99 -1.03 1.05 0.97 1.05

29-Nov-07 80.97 19003.26 20 0.07 0.34 0.11 0.01 0.12 0.02

30-Nov-07 82.75 19363.19 21 2.19 1.89 2.23 4.96 3.59 4.15

Average -0.04 Variance 2.62 Sum

Sum -0.74 -2.10 Risk 1.62 64.94 55.37

44

Returns of HDFC Tax Saver Fund for the month of November-07

Risk free Rate 0.06

n*sum x y 1162.78

Sum x -2.10

Sum y -0.74

n*sumx^2 1363.81


60/98

sumx^2 4217.66

Beta -0.41

Returns -0.04

Risk 1.62

Shrpes -0.06

Treynor 0.23

Graph-5Graphical Representation of HDFC Tax Saver Dividend Plan and Bse Returns for the Month

of November-07



-5.00

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

6.00

1 3 5 7 9 11 13 15 17 19 21

Time

Re Returns(y)

Returns(x)


Risk.It has the Trynors ratio generating 0.23 returns above the risk free rate of return for every


The Returns generated by HDFC Tax Saver Dividend Fund for the Month of November

are not much affected by change in market state of affairs, as the Beta is -0.41 which is less

than the market value of Beta; the fund is not a destructive fund. It generated returns -0.06.

45

Table-6 Calculation of Risk of HDFC Tax saver Fund for the month of December-07

Date

NetAssetValue

Closingprice S. No.


Returns-Mean


3-Dec-07 83.62 19603.41 1 1.06 1.24 0.85 0.73 1.54 1.31

4-Dec-07 83.52 19529.5 2 -0.13 -0.38 -0.34 0.11 0.14 0.05


61/98

5-Dec-07 84.57 19738.07 3 1.26 1.07 1.06 1.12 1.14 1.35

6-Dec-07 84.96 19795.87 4 0.46 0.29 0.26 0.07 0.09 0.14

7-Dec-07 84.88 19966 5 -0.10 0.86 -0.30 0.09 0.74 -0.08

10-Dec-07 84.94 19930.68 6 0.08 -0.18 -0.13 0.02 0.03 -0.01

11-Dec-07 86.04 20290.89 7 1.29 1.81 1.09 1.18 3.27 2.33

12-Dec-07 86.22 20375.87 8 0.21 0.42 0.01 0.00 0.18 0.09

13-Dec-07 85.66 20104.39 9 -0.65 -1.33 -0.85 0.73 1.78 0.87

14-Dec-07 85.48 20030.83 10 -0.21 -0.37 -0.42 0.17 0.13 0.08

17-Dec-07 82.47 19261.35 11 -3.53 -3.84 -3.73 13.92 14.76 13.54

18-Dec-07 82.20 19079.64 12 -0.32 -0.94 -0.52 0.27 0.89 0.30

19-Dec-07 82.12 19091.96 13 -0.10 0.06 -0.31 0.10 0.00 -0.01

20-Dec-07 82.14 19162.57 14 0.03 0.37 -0.18 0.03 0.14 0.01

24-Dec-07 83.97 19854.12 15 2.23 3.61 2.03 4.11 13.02 8.05

26-Dec-07 85.27 20192.52 16 1.55 1.70 1.34 1.81 2.91 2.64

27-Dec-07 85.21 20216.72 17 -0.08 0.12 -0.28 0.08 0.01 -0.01

28-Dec-07 85.40 20206.95 18 0.23 -0.05 0.02 0.00 0.00 -0.01

31-Dec-07 85.92 20286.99 19 0.62 0.40 0.41 0.17 0.16 0.24


Sum 3.89 5.10 Risk 1.14 40.92 30.88

46

Returns of HDFC Tax Saver Fund for the month of December-07

Risk free Rate 0.06

n*sum x y 586.74

Sum x 5.10

Sum y 3.89

n*sumx^2 777.46

sumx^2 1674.34


62/98

Beta -0.63

Returns 0.20

Risk 1.14

Shrpes 0.13

Treynor -0.23

Graph-6Graphical Representation of HDFC Tax Saver Dividend Plan and Bse Returns for the Month

of December-07



-5.00

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

1 3 5 7 9 11 13 15 17 19

Time

R

et

Returns(y)

Returns(x)




Risk.

The Returns generated by HDFC Tax Saver Dividend Fund for the Month of December are

not much affected by change in market conditions, as the Beta is -0.63 which is less than the

market value of Beta; the fund is not a belligerent fund. It generated returns 0.13.

47

Table:7 Calculation of Risk of HDFC Monthly Income Plan Long term Plan-Growth optionfor the month of July-07.

Date

NetAssetValue

Closingprice S. No.


Returns-Mean


2-Jul-07 15.48 14664.3

3-Jul-07 15.55 14806.5 1 0.43 0.97 0.34 0.12 0.94 0.41

4-Jul-07 15.54 14880.2 2 -0.03 0.50 -0.11 0.01 0.25-

0.01


63/98

5-Jul-07 15.51 14861.9 3 -0.25 -0.12 -0.33 0.11 0.02 0.03

6-Jul-07 15.53 14964.1 4 0.13 0.69 0.05 0.00 0.47 0.09

9-Jul-07 15.59 15045.7 5 0.42 0.55 0.33 0.11 0.30 0.23

10-Jul-07 15.58 15009.9 6 -0.06 -0.24 -0.15 0.02 0.06 0.01

11-Jul-07 15.61 14910.6 7 0.16 -0.66 0.08 0.01 0.44-

0.11

12-Jul-07 15.67 15092 8 0.40 1.22 0.32 0.10 1.48 0.49

13-Jul-07 15.67 15272.7 9 -0.01 1.20 -0.10 0.01 1.43-

0.02

16-Jul-07 15.7 15311.2 10 0.20 0.25 0.12 0.01 0.06 0.05

17-Jul-07 15.67 15289.8 11 -0.16 -0.14 -0.25 0.06 0.02 0.02

18-Jul-07 15.68 15301.2 12 0.06 0.07 -0.03 0.00 0.01 0.00

19-Jul-07 15.71 15550.1 13 0.19 1.63 0.10 0.01 2.65 0.30

20-Jul-07 15.72 15565.6 14 0.07 0.10 -0.02 0.00 0.01 0.01

23-Jul-07 15.77 15732.2 15 0.33 1.07 0.25 0.06 1.15 0.36

24-Jul-07 15.78 15794.9 16 0.01 0.40 -0.08 0.01 0.16 0.00

25-Jul-07 15.74 15699.3 17 -0.25 -0.61 -0.34 0.11 0.37 0.15

26-Jul-07 15.74 15776.3 18 0.05 0.49 -0.04 0.00 0.24 0.02

27-Jul-07 15.68 15234.6 19 -0.37 -3.43 -0.46 0.21 11.79 1.28

30-Jul-07 15.69 15260.9 20 0.03 0.17 -0.05 0.00 0.03 0.01

31-Jul-07 15.76 15551 21 0.45 1.90 0.37 0.13 3.61 0.86


Sum 1.78 6.00 Risk 0.23 25.47 4.20

48

Returns of HDFC Monthly Income Plan long term plan growth option for themonth of july-07

Risk free Rate 0.06

n*sum x y 88.12

Sum x 6.00

Sum y 1.78

n*sumx^2 534.97

Sumx^2 648.96


64/98

Beta -0.68

Returns 0.08

Risk 0.23

Shrpes 0.11

Treynor -0.04

Graph:7Graphical Representation of HDFC Monthly Income Plan Long Term Plan Growth option

and Bse Returns for the Month of July-07

Graphical Representationforthe HDFCMonthly

IncomePlanLongTermPlanGrowthOption&

BSEReturns

-4.000

-3.000

-2.000

-1.000

0.000

1.000

2.000

3.000

1 3 5 7 9 11 13 15 17 19 21

Time

Ret Returns(y)

Returns(x)

The Returns generated by HDFC Monthly Income Plan-Long Term Plan-Growth option for

the Month of July are not much affected by change in market situation, as the Beta is -0.68

which is less than the market value of Beta; the fund is not an aggressive fund. It generated

returns 0.11.It has the Sharpe ratio giving a risk Premium of 0.23 for every unit of StandardDeviation Risk.



49

Table:8 Calculation of Risk of HDFC Monthly Income Plan Long termPlan-Growth option for the month of August-07


65/98

50

Returns of HDFC Monthly Income Plan long term plan growth option for themonth of August-07

Risk free Rate 0.06

n*sum x y 397.52

Date

NetAssetValue

Closingprice S. No.


Returns-Mean

(Returns-Mean)^2 x^2 x*

1-Aug-07 15.64 14935.8 1 -0.76 -3.96 -0.77 0.59 15.65 3

2-Aug-07 15.7 14985.7 2 0.41 0.33 0.40 0.16 0.11 0

3-Aug-07 15.75 15138.4 3 0.30 1.02 0.29 0.08 1.04 0

6-Aug-07 15.73 14903 4 -0.15 -1.55 -0.16 0.03 2.42 0

7-Aug-07 15.74 14932.8 5 0.10 0.20 0.09 0.01 0.04 0

8-Aug-07 15.78 15308 6 0.27 2.51 0.27 0.07 6.31 0

9-Aug-07 15.68 15100.2 7 -0.64 -1.36 -0.65 0.42 1.84 0

10-Aug-07 15.64 14868.3 8 -0.28 -1.54 -0.29 0.08 2.36 0

13-Aug-07 15.68 15017.2 9 0.23 1.00 0.22 0.05 1.00 0

14-Aug-07 15.68 15000.9 10 0.05 -0.11 0.04 0.00 0.01 -0

16-Aug-07 15.56 14358.2 11 -0.81 -4.28 -0.81 0.66 18.36 3

17-Aug-07 15.5 14141.5 12 -0.36 -1.51 -0.37 0.13 2.28 0

20-Aug-07 15.59 14427.6 13 0.54 2.02 0.53 0.29 4.09 1

21-Aug-07 15.45 13989.1 14 -0.84 -3.04 -0.85 0.72 9.23 2

22-Aug-07 15.5 14248.7 15 0.27 1.86 0.26 0.07 3.44 0

23-Aug-07 15.46 14164 16 -0.25 -0.59 -0.26 0.07 0.35 0

24-Aug-07 15.51 14424.9 17 0.34 1.84 0.33 0.11 3.39 0

27-Aug-07 15.62 14842.4 18 0.74 2.89 0.73 0.54 8.38 2

28-Aug-07 15.65 14919.2 19 0.19 0.52 0.18 0.03 0.27 0

29-Aug-07 15.65 14993 20 -0.04 0.50 -0.05 0.00 0.25 -0

30-Aug-07 15.69 15121.7 21 0.29 0.86 0.28 0.08 0.74 0

31-Aug-07 15.78 15318.6 22 0.59 1.30 0.58 0.34 1.69 0


Sum 0.17 -1.09 Risk 0.45 83.26 18


66/98

Sum x -1.09

Sum y 0.17

n*sumx^2 1831.70

sumx^2 6932.05

Beta -0.08

Returns 0.01

Risk 0.45

Shrpes -0.12

Treynor 0.67

Graph:8

Graphical Representation of HDFC Monthly Income Plan Long Term Plan Growth option

and Bse Returns for the Month of August-07

Graphical Representationforthe HDFCMonthly


BSEReturns

-5.00

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

1 3 5 7 9 11 13 15 17 19 21

Time

Ret

Returns(y)

Returns(x)


Risk.It has the Trynors ratio generating 0.67 returns above the risk free rate of return for every



the Month of August are not much affected by change in market surroundings, as the Beta is -0.0

which is less than the market value of Beta; the fund is not an aggressive fund. It generated retur

-0.12.

51

Table-9 Calculation of Risk of HDFC Monthly Income Plan Long term Plan-Growthoption for the month of Sepetember-07


67/98

Date

NetAssetValue

Closingprice S. No.


Returns-Mean


3-Sep-07 15.82 15422.1 1 0.22 0.68 0.11 0.01 0.46 0.15

4-Sep-07 15.82 15465.4 2 0.02 0.28 -0.09 0.01 0.08 0.01

5-Sep-07 15.82 15446.2 3 -0.02 -0.12 -0.12 0.01 0.02 0.00

6-Sep-07 15.86 15616.3 4 0.24 1.10 0.14 0.02 1.21 0.26

7-Sep-07 15.86 15590.4 5 0.02 -0.17 -0.09 0.01 0.03 0.00

10-Sep-07 15.87 15596.8 6 0.06 0.04 -0.05 0.00 0.00 0.00

11-Sep-07 15.85 15542.8 7 -0.10 -0.35 -0.20 0.04 0.12 0.03

12-Sep-07 15.84 15505.4 8 -0.05 -0.24 -0.16 0.02 0.06 0.01

13-Sep-07 15.86 15614.4 9 0.08 0.70 -0.03 0.00 0.49 0.0614-Sep-07 15.82 15603.8 10 -0.21 -0.07 -0.32 0.10 0.00 0.01

17-Sep-07 15.81 15504.4 11 -0.06 -0.64 -0.16 0.03 0.41 0.04

18-Sep-07 15.86 15669.1 12 0.31 1.06 0.21 0.04 1.13 0.33

19-Sep-07 15.94 16322.8 13 0.48 4.17 0.38 0.14 17.40 2.02

20-Sep-07 15.94 16348 14 -0.02 0.15 -0.12 0.02 0.02 0.00

21-Sep-07 15.96 16564.2 15 0.13 1.32 0.03 0.00 1.75 0.17

24-Sep-07 15.98 16845.8 16 0.17 1.70 0.06 0.00 2.89 0.29

25-Sep-07 15.99 16899.5 17 0.05 0.32 -0.06 0.00 0.10 0.01

26-Sep-07 16.02 16921.4 18 0.17 0.13 0.06 0.00 0.02 0.02

27-Sep-07 16.05 17150.6 19 0.19 1.35 0.09 0.01 1.83 0.26

28-Sep-07 16.11 17291.1 20 0.41 0.82 0.31 0.10 0.67 0.34


Sum 2.08 12.93 Risk 0.17 28.69 4.01

52

Returns of HDFC Monthly Income Plan long term plan growth option for themonth of Sepetember-07

Risk free Rate 0.06

n*sum x y 80.18


68/98

Sum x 12.93

Sum y 2.08

n*sumx^2 573.88

sumx^2 823.35

Beta -0.21

Returns 0.10

Risk 0.17

Shrpes 0.26

Treynor -0.21

Graph-9Graphical Representation of HDFC Monthly Income Plan Long Term Plan Growth option

and Bse Returns for the Month of September-07Graphical Representationforthe HDFCMonthly


BSEReturns

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

1 3 5 7 9 11 13 15 17 19

Time

Re Returns(y)

Returns(x)




Risk.


the Month of September are not much affected by change in market conditions, as the Beta is -0.

which is less than the market value of Beta; the fund is not an antagonistic fund. It generated

returns 0.26.

53

Table-10 Calculation of Risk of HDFC Monthly Income Plan Long term Plan-Growthoption for the month of October-07


69/98

Date

NetAssetValue

Closingprice S. No.


Returns-Mean

(Returns-Mean)^2 x^2 x*

1-Oct-07 16.15 17328.6 1 0.21 0.22 0.04 0.00 0.05 0.

3-Oct-07 16.19 17847 2 0.23 2.99 0.06 0.00 8.95 0.4-Oct-07 16.14 17777.1 3 -0.28 -0.39 -0.46 0.21 0.15 0.

5-Oct-07 16.16 17773.4 4 0.15 -0.02 -0.03 0.00 0.00 0.

8-Oct-07 16.07 17491.4 5 -0.55 -1.59 -0.73 0.53 2.52 0.

9-Oct-07 16.14 18280.2 6 0.38 4.51 0.21 0.04 20.34 1.

10-Oct-07 16.17 18658.3 7 0.18 2.07 0.01 0.00 4.28 0.

11-Oct-07 16.22 18814.1 8 0.34 0.84 0.16 0.03 0.70 0.

12-Oct-07 16.17 18419 9 -0.30 -2.10 -0.47 0.23 4.41 0.

15-Oct-07 16.28 19058.7 10 0.69 3.47 0.52 0.27 12.06 2.

16-Oct-07 16.32 19051.9 11 0.21 -0.04 0.04 0.00 0.00 -0.

17-Oct-07 16.26 18715.8 12 -0.36 -1.76 -0.53 0.28 3.11 0.

18-Oct-07 16.18 17998.4 13 -0.47 -3.83 -0.65 0.42 14.69 1.

19-Oct-07 16.1 17560 14 -0.54 -2.44 -0.71 0.51 5.93 1.

22-Oct-07 16.14 17614 15 0.29 0.31 0.11 0.01 0.09 0.

23-Oct-07 16.3 18492.8 16 0.98 4.99 0.80 0.64 24.90 4.

24-Oct-07 16.43 18512.9 17 0.78 0.11 0.61 0.37 0.01 0.

25-Oct-07 16.49 18770.9 18 0.41 1.39 0.23 0.05 1.94 0.

26-Oct-07 16.57 19243.2 19 0.49 2.52 0.32 0.10 6.33 1.

29-Oct-07 16.66 19977.7 20 0.52 3.82 0.34 0.12 14.57 1.

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