" A NALYSIS OF M UTUAL F UND AND P ORTFOLIO

M ANAGEMENT IN M UTUAL F UNDS ”

 DECLARATION

I, hereby, declare that the Project titled " Analysis of Mutual Fund and "
Portfolio Management in Mutual Funds” is original to best to my knowledge &
has not published elsewhere. This is for the purpose of partial fulfillment of ------------
-------------Luvknow of Management requirement for the award of the degree of
Master of Business Administration.
 ACKNOWLEDGEMENT

I am indebted to a multitude of persons who have provided me with valuable help

during our endeavor of research. The project would not have seen the illumination of
the day without the efforts of the many who managed the show in the wings. I am
thankful to all people who have put in great efforts and gave me guidance for the
successful completion of the project.

I am indeed grateful to Mr.---------------------------- for providing me the guidance,

advice, constructive suggestions and faith in my ability inspired to perform well who
gave me a valuable opportunity of involving our self in studying this project.

Preparing a project of this nature is an arduous task and I am fortunate enough to get
support from a large number of people to whom we shall always remain grateful.

Finally, I thank all those who directly and indirectly contributed to this project.
 PREFACE

Investing money where the risk is less has always been risky to decide. The first
factor, which an investor would like to see before investing, is risk factor.
Diversification of risk gave birth to the phenomenon called Mutual Fund.

We are preparing comprehensive report of Mutual Fund industry in India. The basic
idea of assignment of this project is to augment our knowledge about the industry in
its totality and appreciate the use of an integrated loom. It is concerned the
environmental issues and tribulations. This makes us more conscious about Industry
and its pose and makes us capable of analyzing Industry’s position in the competitive
market. This may also enhance our logical abilities.

The Mutual Fund Industry is in the growing stage in India, which is evident from the
flood of mutual funds offered by the Banks, Financial Institutes & Private Financial
Companies.

There are various aspects, which have been studied in detail in the project and have
been added to this project report.

Hope this report would help one understand the mutual Industry of India in detail.
 EXECUTIVE SUMMARY

As a part of my study curriculum it is necessary to conduct a grand project. It

provides us an opportunity to understand the particular topic in depth and which leads
to through to that topic. My topic for the grand project is titled as “Portfolio
management in mutual funds performance” in which emphasis given to the study of
different mutual funds in respect to the risk and return involved in it.

Since mutual funds are a relatively recent phenomenon in India, general public or
investors don’t have clarity about this concept. As we have started witnessing the
concept of more saving now being entrusted to the funds than to keeping it in banks.
So it is very important to manage investor’s portfolio efficiently. By efficient we
mean which reduces the risk of investor and increases return on the other hand.

This project is all about how to manage an investor’s portfolio in mutual fund. How
to diversify the investments into different schemes of funds. To manage client’s
portfolio efficiently we first need to understand the industry, current economic
condition of the economy, investor’s behavior, their objective, risk apatite.

This report has divided into two phases. First phase covered investor’s portfolio part
where we have included, Introduction of mutual funds, Indian mutual fund industry,
Investment options available with individuals and at last techniques of managing a
client’s portfolio in mutual funds.

Second phase of the report covered scheme’s portfolio part, where we have compared
HDFC Equity Fund and HDFC Core & Satellite Fund with their competitors. It also
included fund’s portfolio part where we have given information about the different
funds available to investor for investment
 CONTENT

Introduction to Mutual Fund

1 Investors portfolio
2.1. Fixed Return Options
2.2. Variable Return Options
2 Concept of mutual funds
3 Types of mutual funds
By structure
By investment objective
4 Different styles of Mutual Funds
5 Process of Mutual Fund
6 Net Asset Value (NAV)
7 Companies in India
8 Portfolio Management
9 Portfolio Management Process
10 Types of Investors

11.1. Portfolio for Cautious Investor

11.2. Portfolio for Balance Investor
11.3. Portfolio for Aggressive Investor
11 Measurement of Returns on Portfolios
12 Scheme Portfolio
13.1. HDFC Equity Fund
13.2. HDFC Core & Satellite Fund
13.3. Reliance Growth fund
13.4. Prudential ICICI Growth Fund
13.5. DSP Tiger Fund
13.6. Kotak Opportunity Fund

13 Conclusion
14 Bibliography
INTRODUCTION

Economic liberalization and globalization of the Indian markets began in 1991. This
meant that the Indian consumers had access to imported goods which resulted in fall
of prices of domestic goods due to high competition. This also meant that lower
interest rates and more importantly transfer of risk from government to the
individuals, forcing them to protect their investments them self.
Investors have variety of options for investments. Some of them are providing fixed
rate of returns are some of them provide variable rate of returns. Many had
investments with UTI, Company fixed deposits, and Bank fixed deposits that were
offering high returns that now they are starting falling after globalization and
liberalization.
There are some investors who are active. They are the ones who act promptly and
make educated, informed decisions about market. They done their own research and
understand the factors which may have effect on their investments in future. On the
other hand some investors who are apprehensive and will take action only when they
can see tangible merits on the change.
As every individual is different, their objectives behind investments also differ from
person to person. Their objectives can for fixed return, capital appreciation, tax
planning or current income. The investment decision will mainly depend upon the
objective of investor. He or she needs to design their portfolio according to their risk
and return profile. The individual should start by specifying investment goals. Once
these goals are established, the individual should be aware of the mechanics of
investing and the environment in which investment decision are made. These include
the process by which securities are issued and subsequently bought and sold, the
regulations and tax laws that have been enacted by various levels of government, and
the sources of information concerning investment that are available to the individuals.
Designing a portfolio is not simple task. Ones individual has decided about the type
of investment then he or she needs to decide portfolio in that category. There are
various ways of maintaining portfolio of individual.
 Investor’s Portfolio

What is an Investment?
An investment is the use of capital to create more money through the acquisition of a
security that promise the safety of the principal and generate a reasonable return.

Various Investment Options

Savings form an important part of the economy of any nation. With the saving
invested in various options available to the people, the money acts as the driver for
growth of the country. Indian financial scene too presents a plethora of avenue to the
investors. Though certainly not the best or deepest of markets in the world, it has
reasonable options for an ordinary man to invest his savings.
There are basically two kinds of investments. One that gives returns at fixed rate and
other where the rate of return is depending upon the certain factors of the economy.

1. Fixed Return Options

 Post office monthly income scheme
 Public provident fund
 Bank fixed deposits
 Government securities or gilts
 RBI taxable bonds
 Insurance
 Company fixed deposits
 Infrastructure bonds
 2. Variable Return Options
 Mutual Funds
 Share and Stock market
1. Primary invested in equity (IPO)
2. Secondary market investment in equity
3. Derivative, Futures and Options
 Gold
 Real estate
 Foreign exchange assets

3. UNIT LINKED INSURANCE PLANS

1. ULIP capital secure fund.
2. ULIP balanced fund.
3. ULIP growth fund
4. ULIP equity fund
5. Pension capital secure fund
6. Pension balanced fund
7. Pension growth fund

1. Fixed Return Options

Under fixed return investments, investor will get fixed return on their investments.
The rate of return is pre decided at the time of investment. Rate of return can be
calculated on per annum basis or at completion of particular time period.

a. Post Office Monthly Income Scheme:

In this scheme an investment can be made by individuals in single or joint names

maximum of Rs. 6 lakhs (Rs.3 lakhs per person) with an interest of 8% p.a. in a
monthly income scheme. This will give you Rs. 4000/- per month if you invested the
maximum amount. In addition, this investment will fetch you a taxable bonus of 10%
on the deposit maturity (i.e. after 6 years)
b. Other Post Office Scheme

Kisan Vikas Patra:

Money can be doubled in 8 years and 7 months. There is no upper limit on the
amount that you invest. There are no tax benefits for the investments made under this
scheme. The rate of interest works out to a compounded annual return of about 8.4%.
There are no tax deductions at source and banks loans are available against Kisan
Vikas Patra. Interest is paid at maturity and cannot be claimed prior to maturity.

Senior Citizen Savings Scheme (2004):

As per the 2004-2005 budgets, the Government has announced a new Senior Citizen
Savings Scheme. It has been launched only through designated Post Offices from the
2nd August, 2004. it for the individuals who have attained the age of 60 years or above
on the date of opening of an account or who have attained the age of 55 years or more
but less than 60 years, and who have retired under Voluntary Retirement scheme or a
Special Voluntary Retirement scheme on the date of opening of an account. The main
feature of the scheme is that is carries an interest of 9% p.a. (taxable) on the deposits.
Deposits can be a minimum of Rs. 1000 and maximum of Rs. 15 lakhs, to be held for
a period of 5 years and extendable for further 3 years. It can also be prematurely
withdrawn after one year with some deductions. Interest qualifies for deduction u/s
80L.

c. Public Provident Fund:

The rate of public provident fund is 8.5% p.a. currently. This is basically a long term
investment opportunities (maturity 15 year) as the entire amount that is accumulated
in this account can be withdrawn entirely only after 15 years. Partial withdrawal is
allowed only after 5 years. Interest is exempt from income tax and contributions are
eligible for tax deductions.
 d. Bank Fixed Deposits:

Bank fixed deposits yield will vary from bank to bank but they are more or less
streamlined. The yields are currently in the region of 5.5% to 6.5% per annum for
deposits ranging from 30 days to five years. All the schedule banks are covered by
DICGC (Deposit Insurance and Credit Guarantee Corporation) which means that up
to 1 lakh deposited in a bank per person is absolutely safe and insured even if the
bank collapse.

HDFC Bank FD Interest Rate

in % p.a.
7 days-14 days 3.5
15 days-29days 4.25
30days-45days 4.25
46days-60days 4.5
61days-90days 4.75
91days-180days 5
6month 1 day-1 year 5.5
1 year 1 day-2 years 6
2 year1 day- 3 years 6.25
3 year 1 day- 5 years 6.25
5 year 1 day-8 years 6.5

e. Government Security or Gilts:

Government security and gilts are totally secure. Government bonds are issued by the
government of India periodically. These are now available in the secondary market
through satellite dealers and banks. They are known to yield 5% to 6% per annum.
Interest exceeding Rs. 2500 is liable for TDS at 10.455%.
f. RBI Taxable Bonds:

These are 8% saving bonds which are taxable. The maturity is after 6 years and there
is no upper limit to investment is these bonds. The interest accrued on these bonds is
taxable under the Income Tax Act, 1961.

Key Rates Current 1 Month ago

1 yr G-sec 6.81% 6.72%
5 yr G-sec 7.22% 6.96%
10 yr G-sec 7.41% 7.31%
5 yr AAA 8.25% 7.77%

g. Insurance:

There are several types of insurance policies available in the market today through
various players. Life insurance is the most sought after cover life it also offer a tax
benefit for the amount of premium paid in a particular year. Though insurance is
considered as expenditure, it became an investment option.
The insurance policies available in the market are either pure insurance or a
combination of the three basic types of life insurance policies namely, Term, Whole
and Endowment. Term assurance policy is purely protection policy with no
investment elements. Whole life and Endowment policies are different as a payout is
certain in these policies. A Whole life policy pays out on the death of the life assured,
whenever that occurs and in Endowment policy pay will be on maturity date or earlier
death. There is one more type of insurance policy is so popular these days is UNIT
Link Insurance under which premium amount will be invested in to equity market via
mutual fund investment.
h. Company Fixed Deposits:

Company fixed deposits was a highly popular investment vehicle in the past. In
today’s changing scenario where the corporate world has access to cheaper funds
from sources all over the world, the rate of interest offered by good companies make
this a less attractive investment vehicle.

i. Infrastructure Bonds:

An infrastructure bond is a tax saving bond that was innovated in order to provide
funds for the development of the key infrastructure projects. Thus, investors in these
bonds apart from the material benefits in term of tax saving, have the higher
satisfaction of having contributed to the development of the country’s infrastructure.
The rate of return on such bonds is between 5 to 5.5%. The bonds have lock in period
of 3 years.

2. Variable Return Options

a. Mutual Funds:

A mutual fund is a company that pools the money of many investors to invest in a
variety of different securities. Investment may be in stocks, bonds, debentures, money
market or combination of these. These securities are professionally managed on the
behalf of investor, by the fund manager.

b. Shares and the Stock Market:

An equity share is a certificate or a book entry that represents the single unit of
ownership in a company or its business. They are sold either directly by the company
or they can be acquired through broker from the stock market. By purchasing a share
of a company, an individual gets a ownership rights, right to vote and share in the
company’s future profits and losses.
 Primary Market Investment in Equity (IPO)

The primary market is a place where the new offerings by companies are made as an
Initial Public Offering (IPO) IPO’s are offering made by the company for the first
time in the market. Such offers to the public can be at par or can be at premium.

Secondary Market Investment in Equity:

The stock exchange is a place where buyers and sellers meet to trade in shares in an
organized manner. There are at present 26 recognized stock exchanges in the country
and are governed by security board of India (SEBI).

Derivative, Futures and Options:

Derivative is a contract/ product that has no independent value i.e. it derives its value
from the underlying assets. Underlying assets can be securities, commodities, bullion,
currency, livestock or any thing else. Through the use of derivative product, an
investor can transfer the price by locking in asset prices.

c. Gold:

Of late, an inverse relationship between the dollar and gold has been in India. The
lower the dollar goes, the higher is the gold prices. Why does this happen? The dollar
is the international currency with nothing besides gold to challenge it. Besides being a
commodity, gold is a universally accepted form of money. India is a net importer of
gold. The domestic production is almost negligible and India is the highest consumer
of gold in the world.

d. Real estate:
 Investment in real estate or property is a good long term investment for well-heeled
investors with a huge amount of money. Depending on the total resources at your
disposal, you can invest a part of it in property.

e. Foreign Exchange Asset:

Till January 2004, Indian residents’ investors were not allowed by our exchange
control rules to invest in foreign exchange assets.
Recently, the reserve bank of India has allowed residents to invest overseas to the
extent of an equivalent of US $ 25,000 per year. Now investor from India can take
advantage of any attractive investment opportunity overseas.

3. UNIT LINKED INSURANCE PLANS

Risks of investment in the Units of the Fund the Proposer / Life Assured should be
aware that the investment in the units is subject to the following risks:
CashPlus is a Unit-Linked Insurance Policy (ULIP) and is different from traditional
products. Investments in ULIPs are subject to market risks. The premium paid in
Unit-Linked Life Insurance policies are subject to investments risks associated with
capital markets and debt markets; and the NAVs of the units may fluctuate based on
the performance of fund and factors influencing the
Capital market; and the insured is responsible for his /her decisions. ICICI Prudential
Life Insurance Company Limited and CashPlus are only names of the company and
the policy respectively and do not in any way indicate the quality of the policy, its
future prospects or returns. The investment in the Fund is subject to market and other
risks and there can be no assurance that the objectives of the Fund will be achieved.
The fund does not offer a guaranteed or assured return.
 CONCEPT OF MUTUAL FUNDS

A Mutual Fund is a body corporate that pools the savings of a number of investors
and invests the same in a variety of different financial instruments, or securities. The
income earned through these investments and the capital appreciations realized by the
scheme are shared by its unit holders in proportion to the number of units owned by
them. Mutual funds can thus be considered as financial intermediaries in the
investment business that collect funds from the public and invest on behalf of the
investors. The losses and gains accrue to the investors only. The Investment
objectives outlined by a Mutual Fund in its prospectus are binding on the Mutual
Fund scheme. The investment objectives specify the class of securities a Mutual Fund
can invest in. Mutual Funds invest in various asset classes like equity, bonds,
debentures, commercial paper and government securities.

Mutual funds are commonly categorized by their general investment objectives.

Equity funds consist mainly of common stocks and are organized primarily to achieve
capital appreciation, or growth, rather than periodic distribution of income. Bond
funds, on the other hand, are composed predominantly of corporate, Government, or
municipal bonds and emphasize regular income rather than growth. Income funds
have the same objective as bond funds but include Government National Mortgage
Association securities, Government securities, and common and preferred stocks as
well as bonds. Money market mutual funds consist of short-term instruments, such as
Government securities, bank CDs, and commercial paper. Short-term municipal bond
funds are composed predominantly of tax-exempt, short-term municipal securities.
 Types of Mutual Funds

Mutual Fund schemes may be classified on the basis of its structure and its
investments.

By Structure:

Open-End Funds:

 Available for sale and repurchase at all times based on the net asset values
 Unit capital of the fund is not fixed
 Fund size and its total investment go up if more new subscriptions come in than
redemptions and vice versa.

Close-End Funds:

 One time sale of fixed number of units.

 Investors are not allowed to buy or redeem the units directly from the funds. Some
funds offer repurchase after a fixed period.
 Listed on stock exchange and investors can buy or sell units through exchange. May
be traded at a discount or premium to NAV based on investor’s perception about the
funds future performance and other market factors.
A closed-end fund has a stipulated maturity period which generally ranging from 3 to
15 years. The fund is open for subscription only during a specified period. Investors
can invest in the scheme at the time of the initial public issue and thereafter they can
buy or sell the units of the scheme on the stock exchanges where they are listed. In
order to provide an exit route to the investors, some close-ended funds give an option
of selling back the units to the Mutual Fund through periodic repurchase at NAV
 related prices. SEBI Regulations stipulate that at least one of the two exit routes is
provided to the investor.
Interval Funds:

Interval funds combine the features of open-ended and close-ended schemes. They
are open for sale or redemption during pre-determined intervals at NAV related
prices.

By Investment Objective:-

Money/Cash Market Funds:

Instruments having less then one year maturity;

 Treasury bills issued by government
 Certificates of deposit issued by governments
 Commercial paper issued by companies
 Inter bank call money
 Aim to provide easy liquidity, preservation of capital and moderate income.

Gilt Funds:

Securities maturity over a year;

 Invested in government securities are called dated securities
 Virtually zero risk of default it is backed by the government
 It is more sensitive to market interest rates

Debt/Income Funds:
 Investment in debt instruments issued not only by Government but also by private
companies, banks and financial institution and other entities such as infrastructure
companies.
 Target low risk and stable income for investors.
 Have higher price fluctuation as compared to money market funds due to interest rate
fluctuation.
 Have higher risk of default by borrowers as compared to Gilt funds.
 Debt funds can be categorized further based on their risk profiles.
 Carry both credit risk and interest rate risk.

Equity Funds:
 Invest a major portion of their surplus in equity shares issued by cos, acquired directly
in initial public offering or through secondary market and keep a part in cash to take
care of redemption.
 Risk is very high than debt funds but offer very high growth potential for the capital.
 It can be further categorized based on investment strategy.
 It must have along term objectives.

Balanced Funds:
 Has a portfolio of debt instrument, convertible securities, preference and equity
shares.
 Almost equal proportion of debt/money market securities and equities. Normally
funds maintain a ratio of 55:45 or 60:40 some funds allocate a flexible proportion
based on market conditions.
 Aim is to gain income, capital appreciation and preservation of capital.
 Ideal for investors for a conservative and long term orientation.

Load Funds:
A Load Fund is one that charges a commission for entry or exit. That is, each time
you buy or sell units in the fund, a commission will be payable. Typically entry and
exit loads range from 1% to 2%. It could be worth paying the load, if the fund has a
good performance history.

No-Load Funds:
 A no-Load Fund is one that does not charge a commission for entry or exit. That is,
no commission is payable on purchase or sale of units in the fund. The advantage of a
no load fund is that the entire corpus is put to work.

Other Schemes:-

Tax saving Schemes

These schemes offer tax rebates to the investors under specific provisions of the
Indian Income Tax laws as the Government offers tax incentives for investment in
specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and
pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The
Act also provides opportunities to investors to save capital gains u/s 54EA by
investing in Mutual Funds, provided the capital asset has been sold prior to April 1,
2000 and the amount is invested before September 30, 2000.

Special Schemes:-

 Industry Specific Schemes

Industry Specific Schemes invest only in the industries specified in the offer
document. The investment of these funds is limited to specific industries like
InfoTech, FMCG and Pharmaceuticals etc.

 Index Schemes
Index Funds attempt to replicate the performance of a particular index such as the
BSE Sense or the NSE 50

 Sector Schemes
Sector Funds are those, which invest exclusively in a specified industry or a group of
industries or various segments such as 'A' Group shares or initial public offerings.
 Different styles of Mutual Funds

Different Mutual Funds have very different investing styles. These styles are a
function of the individuals managing the fund with the overall investment objectives
and policies of the organization acting as a constraint. These are manifest in things
like:-

Portfolio turnover – Buy and hold strategy versus frequent investment changes.

Kind of investments made – small versus large companies, multi baggers

(investments which yield high gains) versus percentage players (investing in shares
which will give small gains in line with the market), high quality – low yield bonds
versus low quality – high yield bonds.

Asset allocations – Varying percentage of cash depending on aggressive views on

markets

The following examples serve to illustrate a few styles of equity fund managers:

Some fund managers are passive value seekers and some are value creators. The
former type buys undervalued assets and patiently waits for the market to discover the
value. The latter aggressively promote the undervalued stocks that they have bought.

Some fund managers restrict themselves to liquid stocks while some thrive on illiquid
stocks which offer themselves easily to large price changes.

Some fund managers are masters of the momentum game and seek to buy stocks that
are in market fancy. They attach lesser importance to fundamentals and believe that a
rising stock price and favorable momentum indicators imply that fundamentals are
changing. In effect, they are following the philosophy, "The trend is my friend".
Other fund managers go more by deep fundamental analysis completely ignoring
price movements. They do not mind price going down and are in fact happy to buy
more.

Some fund managers are growth investors i.e. they buy stocks with a high P/E using
the forecasted growth to justify the high valuation. Others are value investors who
buy shares with low P/E or P/BV multiples - typically companies rich with
undervalued assets.

rocess of Mutual Fund

In the above graph shows how Mutual Fund works and how investor earns money by
investing in the Mutual Fund. Investors put their saving as an investment in Mutual
Fund. The Fund Manager who is a person who takes the decisions where the money
should be invested in securities according to the scheme’s objective. Securities
include Equities, Debentures, Govt. Securities, Bonds, and Commercial Paper etc.
These Securities generates returns to the Fund Manager. The Fund Manager passes
back return to the investor.
 NET ASSET VALUE (NAV)

The net asset value of the fund is the cumulative market value of the assets fund net
of its liabilities. In other words, if the fund is dissolved or liquidated, by selling off all
the assets in the fund, this is the amount that the shareholders would collectively own.
This gives rise to the concept of net asset value per unit, which is the value,
represented by the ownership of one unit in the fund. It is calculated simply by
dividing the net asset value of the fund by the number of units. However, most people
refer loosely to the NAV per unit as NAV, ignoring the "per unit". We also abide by
the same convention.

Calculation of NAV

The most important part of the calculation is the valuation of the assets owned by the
fund. Once it is calculated, the NAV is simply the net value of assets divided by the
number of units outstanding. The detailed methodology for the calculation of the
asset value is given below.

Asset value is equal to

Sum of market value of shares/debentures

+ Liquid assets/cash held, if any

+ Dividends/interest accrued

Amount due on unpaid assets

Expenses accrued but not paid

Details on the above items

For liquid shares/debentures, valuation is done on the basis of the last or closing
market price on the principal exchange where the security is traded.

For illiquid and unlisted and/or thinly traded shares/debentures, the value has to be
estimated. For shares, this could be the book value per share or an estimated market
price if suitable benchmarks are available. For debentures and bonds, value is
estimated on the basis of yields of comparable liquid securities after adjusting for
illiquidity. The value of fixed interest bearing securities moves in a direction opposite
to interest rate changes Valuation of debentures and bonds is a big problem since
most of them are unlisted and thinly traded. This gives considerable leeway to the
AMCs on valuation and some of the AMCs are believed to take advantage of this and
adopt flexible valuation policies depending on the situation.

Interest is payable on debentures/bonds on a periodic basis say every 6 months. But,

with every passing day, interest is said to be accrued, at the daily interest rate, which
is calculated by dividing the periodic interest payment with the number of days in
each period. Thus, accrued interest on a particular day is equal to the daily interest
rate multiplied by the number of days since the last interest payment date.

Usually, dividends are proposed at the time of the Annual General meeting and
become due on the record date. There is a gap between the dates on which it becomes
due and the actual payment date. In the intermediate period, it is deemed to be
"accrued". Expenses including management fees, custody charges etc. are calculated
on a daily basis.
 COMPANIES IN INDIA
1. ABN AMRO Mutual Fund
2. Birla Sun Life Mutual Fund
3. Bank of Baroda Mutual Fund (BOB Mutual Fund)
4. HDFC Mutual Fund
5. HSBC Mutual Fund
6. ING Vysya Mutual Fund
7. Prudential ICICI Mutual Fund
8. Sahara Mutual Fund
9. State Bank of India Mutual Fund
10. Tata Mutual Fund
11. Kotak Mahindra Mutual Fund
12. Unit Trust of India Mutual Fund
13. Reliance Mutual Fund
14. Standard Chartered Mutual Fund
15. Franklin Templeton India Mutual Fund
16. Morgan Stanley Mutual Fund India
17. Escorts Mutual Fund
18. Alliance Capital Mutual Fund
19. Benchmark Mutual Fund
20. Canbank Mutual Fund
21. Chola Mutual Fund
22. GIC Mutual Fund
23. LIC Mutual Fund
24. Fidelity Mutual Fund
25. IL&FS Mutual Fund
26. DSP Merill lynch Mutual Fund
27. Sundaram Mutual Fund
28. Principal Mutual Fund
29. Taurus Mutual Fund
30. Deutsche Mutual fund
31. IDBI Investment Company Ltd.
32. Bank of India Mutual Fund
 PORTFOLIO MANAGEMENT

People have different investment objective and risk appetite so to get the highest
returns asset allocation through active portfolio management is the key element.
Asset allocation is a method that determines how you divide your portfolio among
different investment instruments and provides you with the proper blend of various
asset classes.
It is based on the theory that the type or class of security you own equity, debt or
money market- is more important than the particular security itself. In other words
asset allocation is way to control risk in your portfolio. Different asset class will react
differently to market conditions like inflation, rising or falling interest rates or a
market segment coming into or falling out of favor.
Asset allocation is different from simple diversification. Suppose you diversify your
equity portfolio by investing in five or ten equity funds. You really have not done
much to control risk in your portfolio if all these funds come from only one particular
segment of the market say large cap stocks or mid cap stocks. In case of an adverse
reaction for that segment, all the funds will react similarly means they will go down.
If you build your portfolio with various top performing growth funds without really
bothering to analyze their portfolio allocation, you may end up with over-exposure to
a particular segment. Another point you need to remember is that growth funds are
highly correlated- they tend to move in the same direction in response to a given
market force.
The advantage of asset allocation lies in achieves superior returns when markets are
down while minimizing the exposure of the portfolio to volatility. In fact, asset
allocation is based on certain dimensions that, when combined tend to control the
volatility while achieving targeted returns.
 Portfolio Management Process

Portfolio management is a complex activity, which may be broken down into the
following steps:

1. Specification of investment objectives and constraints:

The typical objectives sought by an investor are current income, capital appreciation,
safety, fixed returns on principal investment.

2. Choice of asset mix:

The most important decision in portfolio management is the asset mix decision. This
is concerned with the proportions of “Stock” or “
Units” of mutual fund or “Bond” in the portfolio. The appropriate mix of Stock and
Bonds will depend upon the risk tolerance and investment horizon of the investor.

3. Formulation of portfolio strategy:

Once the certain asset mix has been chosen an appropriate portfolio strategy has to be
decided out. Two broad portfolio choices are available
An active portfolio management: it strive to earn superior risk adjusted returns by
resorting to market timing, or sector rotation or security selection or some
combination of these.
A passive portfolio management involves holding a broadly diversified portfolio
and maintaining a pre-determined level of risk exposure.

Designing a model Portfolio

 There are certain objectives that should keep in mind while designing a portfolio
these are:

 Higher absolute rate of return and high real rate of return

 Maximization current income
 High post tax returns
 Positive real return
 Preservation of capital
 Growth in capital

For my study I am making three dummy portfolios for three different kinds of
investors.

Types of Investor:

1. Cautious Investor:
It’s kind of investor who is less bothers about high returns. He wants to lower down
his risk profile and demand for fixed income on his investment. His main objective of
investment is fixed returns with less risk.

2. Balanced Investor:
It’s a kind of investor who is bothers about returns as well as risk. He wants
moderate returns with moderate risk.

3. Aggressive Investor:
It’s a kind of investor who is ready to take risk. He believes in high risk and high
returns. So he only wants to invest in equity schemes.

I have made an assumption that each investor want to invest 5 Lakh Rs.
Portfolio for Cautious Investor

Investment Instrument Amount Returns

Kisan Vikas Patra 1,50,000 Rs. 8.4% p.a.
PPF 70,000 Rs. 8.5% p.a.
Bank Fixed Deposits 1,00,000 Rs. 6.5% p.a.
NSC 80,000 Rs. 8.16% p.a.
Post office monthly MIP 1,00,000 Rs. 8% p.a.
TOTAL 5,00,000 Rs.

Logic behind selection of particular Instrument:

As investor does not want to take risk, he is satisfied with fixed return rather they are
less than equity investment’s returns. So I took thus instrument which provides good
return as well as secure also. All of these instruments will give him return around 8%
annually.

Portfolio for Balance Investor

Investment Instrument Amount Returns

HDFC Prudence Fund 1,30,000 Rs. 54.2% p.a.
Reliance Vision Fund 1,00,000 Rs. 78.3% p.a.
Bank Fixed Deposits 1,00,000 Rs. 6.5% p.a.
PPF 70,000 Rs. 8.5% p.a.
Kisan Vikas Patra 1,00,000 Rs. 8.4% p.a.
TOTAL 5,00,000 Rs.

Logic behind selection of particular Instrument:

As investor does not want to take high risk, he is satisfied with fixed return plus some
equity exposure. But he wants some safety in equity exposure also. So I took thus
instrument which provides good return as well as safety also. Fixed return
instruments like PPF, Bank FD and kisan viaks patra will give him return around 8%
annually and I suggest Balance kind of funds to him where he will have exposure of
both equity as well as debts. HDFC prudence fund is best performing fund under
balance scheme. To increase the ratio of equity in portfolio I suggested Reliance
vision fund which is mainly based on large and mid cap companies.

Portfolio for Aggressive Investor

Investment Instrument Amount Returns

HDFC Core & Satellite Fund 1,30,000 Rs. 83.56% p.a.
Prudential ICICI Emerging Star Fund 90,000 Rs. 93.3% p.a.
Franklin Flexi Cap Fund 1,10,000 Rs. 86.25% p.a.
Fidelity Equity Fund 80,000 Rs. 82.4% p.a.
DSP Top 100 90,000 Rs. 79.28% p.a.
TOTAL 5,00,000 Rs.

Logic behind selection of particular Instrument:

As investor ready to take high risk, he is looking for high returns on his investment. I
took thus instrument which provides good return. All of these instruments will give
him return around 80% annually. Currently Mid cap companies will perform better
than large cap companies so, I select more funds which are focusing on mid cap
companies like HDFC, Franklin’s funds.
To take the benefit of increasing Sensex I took DSP top 100.
 MEASUREMENT OF RETURNS ON PORTFOLIOS

The realized rate of return will be calculated by

1. Time Weighted Rate of Return (TWROR)

It is calculated by using Dietz Algorithm

Ri= [(Pi-0.5Ci)/ (Po+0.5Ci)-1}*100

Po= Portfolio value at the beginning of the period

Pi= Portfolio value at the end of the period
Ci= Net contributions during time interval
Ri= Rate of Return for the time interval

a) Rate of return for cautious investor

Current
Investment Instrument Amount Returns
Value
Kisan Vikas Patra 1,50,000 Rs. 8.4% p.a. 1,62,600
PPF 70,000 Rs. 8.5% p.a. 75,950
Bank Fixed Deposits 1,00,000 Rs. 6.5% p.a. 1,06,500
NSC 80,000 Rs. 8.16% p.a. 86,528
Post office monthly MIP 1,00,000 Rs. 8% p.a. 1,08,000
TOTAL 5,00,000 Rs. 5,39,578
 Time Weighted Rate of Return (TWROR)

Ri= [(Pi-0.5Ci)/ (Po+0.5Ci)-1}*100

= {(539578-0.5(0))/ (500000+0.5(0))-1}*100

= 7.91% p.a.

b) Rate of return for balance investor

Investment Instrument Amount Returns Current

Value
HDFC Prudence Fund 1,30,000 Rs. 54.2% p.a. 2,00,460
Reliance Vision Fund 1,00,000 Rs. 78.3% p.a. 1,78,300
Bank Fixed Deposits 1,00,000 Rs. 6.5% p.a. 1,06,500
PPF 70,000 Rs. 8.5% p.a. 75,950
Kisan Vikas Patra 1,00,000 Rs. 8.4% p.a. 1,08,400
TOTAL 5,00,000 Rs. 6,69,610

Time Weighted Rate of Return (TWROR)

Ri= [(Pi-0.5Ci)/ (Po+0.5Ci)-1}*100

= {(669610-0.5(0))/ (500000+0.5(0))-1}*100

= 33.92%p.a.

c) Rate of return for aggressive investor

Investment Instrument Amount Returns Current Value

HDFC Core & Satellite Fund 1,30,000 Rs. 83.56% p.a. 2,38,628
Prudential ICICI Emerging Star Fund 90,000 Rs. 93.3% p.a. 1,73,790
Franklin Flexi Cap Fund 1,10,000 Rs. 86.25% p.a. 2,04,875
Fidelity Equity Fund 80,000 Rs. 82.4% p.a. 1,45,920
DSP Top 100 90,000 Rs. 79.28% p.a. 1,61,352
TOTAL 5,00,000 Rs. 9,24,565

Time Weighted Rate of Return (TWROR)

Ri= [(Pi-0.5Ci)/ (Po+0.5Ci)-1}*100

= {(924565-0.5(0))/ (500000+0.5(0))-1}*100

= 84.91%p.a.
 Need for the Study:

• To understand the contribution of mutual funds for the growth and development of
economy in general .

• To understanding the risk and return relationships for each mutual fund scheme
under consideration.

• To study and make a comparative analysis of the mutual fund schemes offered by
reliance mutual fund and identify the best.

Objective of the Study:

• To evaluate the past performance of selected open-ended Equity mutual fund

schemes of Reliance.

• To carry out the risk return analysis of the sample funds selected.

Scope of the study:

• The Schemes were categorized and selected for evaluating their performance and
relative risk.
• The scope of the project is mainly concentrated on the top performing schemes of the
Reliance mutual fund such as Reliance Small Cap Fund, Reliance Long Term
Equity Fund, Reliance Growth Fund, Reliance Vision Fund, Reliance Top 200
Fund, Reliance Equity Opportunities Fund, Reliance Banking Fund, Reliance
Pharma Fund, Reliance Diversified power Sector Fund and Reliance Tax Saver
Fund
 RESEARCH METHODOLOGY

Primary Objectives

The main objective of this study is doing an In-depth analysis of Mutual Fund
portfolio by taking sample of funds and comparing it with it others

Secondary objectives

- to understand the portfolio management process in mutual fund

- To know the effects of political, economical, social and technological factors
on Mutual Fund Industry in India.
- Evaluating fund performance

Collection of data

For the complete study I required data of Mutual Fund and getting from the secondary
data base.

Sources of the data collection will be,

(1) Internet
(2) Various magazines/bulletins
(3) News papers
(4) Related books
 Scheme Portfolio

Scheme Portfolio:
Like investors portfolio different scheme under mutual fund have different portfolio.
By scheme portfolio we mean portfolio or companies in which fund manager invested
the fund. The selection of companies depend upon many issue which have great
impact in current scenario as well as in near future. Fund manager has to do lot of
research before investing into particular script.
Before going into detail one should understand Sensex movement. Mutual fund
returns are based on Sensex. Their Net Asset Value is directly related to Share
market. The below table shown the Sensex change on monthly basis. Means what is
% change in Sensex during one month.

Sensex Journey
Percentage Changes at the End of the Day
Date Opening Closing Change Change in %
30-Sep-08 8,672.66 8,634.48 -38 -0.43
3-Oct-08 8,662.99 8,697.65 35 0.44
31-Oct-08 7,717.07 7,892.32 175 2.26
2-Nov-08 7,953.28 8,072.75 119 1.49
30-Nov-08 8,962.92 8,788.81 -174 -0.19
2-Dec-08 9,010.58 8,961.61 -49 -0.54
30-Dec-08 9,339.32 9,397.93 58 0.62
2-Jan-09 9,422.49 9,390.14 -32 -0.33
31-Jan-09 9,892.23 9,919.89 27 0.27
2-Feb-09 9,890.90 9,843.87 -47 -0.47
28-Feb-09 10,308.71 10,370.24 62 0.61
2-Mar-09 10,597.19 10,626.78 29 0.27
31-Mar-09 11,325.96 11,279.96 -46 -0.41
 Percentage Changes at the End of the Month

Date Opening Closing Change In Closing Prices Change in %

30-Sep-08 8,672.66 8,634.48 Nil Nil

31-Oct-08 7,717.07 7,892.32 742 8.59

30-Nov-08 8,962.92 8,788.81 896 11.35
30-Dec-08 9,339.32 9,397.93 609 6.92
31-Jan-09 9,892.23 9,919.89 522 5.55
28-Feb-09 10,308.71 10,370.24 451 4.54
31-Mar-09 11,325.96 11,279.96 909 8.76

Sensex has boomed with lots of ups and down from last year. It seems very
fluctuating.
For my study purpose I have taken HDFC Equity Fund and HDFC Core & Satellite
Fund. What is their portfolio means in which companies the fund manager invested
the fund. How he has allocated funds among various industries as well as various
companies. After studying both the fund’s portfolio I compare them with reliance
Growth fund, Prudential ICICI Growth Fund, DSP Tiger Fund and Kotak
Opportunity Fund. Comparison is based on per month returns and Sensex returns
during the same period.

HDFC Equity Fund

Portfolio Top 10 Holdings For October

S. No. Company Industry % of NAV
1 Oil & Natural Gas Corporation Ltd. Oil 9.11
2 State Bank of India Banks 9.02
3 Infosys Technologies Ltd. Software 7.97
4 Satyam Computer Services Ltd. Software 7.68
5 Bharat Heavy Electricals Ltd. Industrial Capital Goods 7.25
6 Amtek Auto Ltd. Auto Ancillaries 6.05
7 Maruti Udyog Ltd. Auto Ancillaries 5.21
8 United Phosphorus Ltd. Pesticides 4.69
9 Crompton Greaves Ltd. Industrial Capital Goods 4.67
10 Mahindra & Mahindra Ltd. Auto 4.54
Top 10 Holdings 66.09
Others Equity Holdings 33.91
TOTAL 100

NAV Changed During the Month (GROWTH)

Date NAV Change % Change
1, Oct 2008 93.055
31, Oct 2008 88.295 -4.76 -5.11

Compare returns with Sensex Movement

Date Closing Change % change
30-Sep-
08 8,634.48
31-Oct-08 7,892.32 -742 -8.59
 HDFC Equity Fund

Portfolio Top 10 Holdings For December

S. No. Company Industry % of NAV
1 Oil & Natural Gas Corporation Ltd. Oil 9.14
2 Infosys Technologies Ltd. Software 8.91
3 Tata Motors Ltd. Auto 8.67
4 Satyam Computer Services Ltd. Software 7.72
5 State Bank of India Banks 5.19
6 Crompton Greaves Ltd. Industrial Capital Goods 4.87
7 Amtek Auto Ltd. Auto Ancillaries 4.76
8 Mahindra & Mahindra Ltd. Auto 4.45
9 Bharat Heavy Electricals Ltd. Industrial Capital Goods 4.44
10 Maruti Udyog Ltd. Auto Ancillaries 4.36
Top 10 Holdings 62.51
Others Equity Holdings 37.49
TOTAL 100

NAV Changed During the Month (GROWTH)

Date NAV Change % Change
1, Dec 2008 102.827
3o, Dec 2009 107.009 4.182 4.06

Compare returns with Sensex Movement

Date Closing Change % change
30-Nov-
08 8,788.81
30-Dec-08 9,397.93 609 6.92

In the month of December Sensex has grown by 6.92% but fund’s return were only
4.06% which indicating towards lower performance of fund.
 HDFC Equity Fund

How Fund's Portfolio effected Returns

October December
Industry % Of Allocation Industry % Of Allocation
Software 19.97 Software 20.14
Industrial Capital
Goods 13.73 Auto 17.48
Auto 12.73 Industrial Capital Goods 13.77
Banks 9.28 Oil 9.14
Oil 9.11 Banks 7.73
Auto Ancillaries 8.68 Auto Ancillaries 7.19
Pesticides 4.69 Pesticides 3.98
Power 4.07 Consumer Non Durables 3.27
Transportation 2.74 Transportation 3.15
Petroleum Products 2.41 Metals 2.25
Hardware 2.11 Gas 2.01
Textile 1.92 Pharmaceuticals 1.63
Metals 1.76 Hardware 1.5
Pharmaceuticals 1.45 Textile 2.57
Chemicals 0.88 Chemicals 0.82
Telecom-service 0.79
Construction 0.21
IT Consulting & Services 0.09
Oct-Dec Month Portfolio
Industry Change
Software 0.17
Auto 4.75
Industry Capital Goods 0.04
Oil 0.03
Banks -1.55
Auto Ancillaries -1.49
Pesticides -0.71
Consumer Non Durables 3.27
Transportation 0.41
Metals 0.51
Gas 2.01
Pharmaceuticals 0.18
Hardware -0.61
Textile 0.66
Chemicals -0.06

Tata Motors Share Benefit

Date Price Change % Change
31, Oct 2008 472
31, dec2008 639.55 167.55 35.49%

Fund manager added auto industry by taking Tata motors to 8.67 % which had no
exposure in the month of October in the portfolio. During that time Tata Motors has
grown from 472 to 639.55 Rs means 35.49% increase which fletched fund
performance in to positive. So, fund manager decision of taking Tata Motors has
proved right.

Amtek Share Benefit

Date Price Change % Change
31, Oct 2008 273.7
31, dec2008 297 24 8.79%

Fund manager reduced Amtek exposure in the portfolio by 1.26 % which proved right
because its share price rose only by 8.79% where Sensex was increasing at 19.2%.so
Amtek performed lower than market so its good to sell this script from portfolio.

HDFC Equity Fund

Portfolio Top 10 Holdings For April
S. No. Company Industry % of NAV
1 Tata Motors Ltd. Auto 9.04
 2 State Bank of India Banks 8.13
3 Infosys Technologies Ltd. Software 8.04
4 Oil & Natural Gas Corporation Ltd. Oil 7.89
5 Satyam Computer Services Ltd. Software 7.44
6 Bharat Heavy Electricals Ltd. Industrial Capital Goods 5.55
7 Maruti Udyog Ltd. Auto Ancillaries 5.23
8 Crompton Greaves Ltd. Industrial Capital Goods 5.17
9 Siemens Ltd. Industrial Capital Goods 4.47
10 Amtek Auto Ltd. Auto Ancillaries 3.94
Top 10 Holdings 64.9
Others Equity Holdings 35.1
TOTAL 100

NAV Changed During the Month (GROWTH)

Date NAV Change % Change Beta

1, Aprl 2009 107.009 0.88
30, Aprl 0.88
2009 132.31 29.30 23.64

Compare returns with Sensex movement

Date Closing Change % change

30 march
09 11329.05
31 april
09 14700.01 2677.96 23.64
 Industry Wise Allocation
April May
Industry % Of Allocation Industry % Of Allocation
Software 20.14 Software 22.03
Auto 17.48 Auto 18.16
Industry Capital Goods 13.77 Industry Capital Goods 15.35
Oil 9.14 Banks 8.6
Banks 7.73 Oil 7.89
Auto Ancillaries 7.19 Auto Ancillaries 6.65
Pesticides 3.98 Consumer Non Durables 3.94
Consumer Non Durables 3.27 Pesticides 3.93
Transportation 3.15 Transportation 2.84
Metals 2.25 Gas 2.1
Gas 2.01 Metals 1.85
Pharmaceuticals 1.63 Pharmaceuticals 1.42
Hardware 1.5 Hardware 1.38
Textile 2.57 Textile 2.04
Chemicals 0.82 Chemicals 0.7
Telecom-service 0.79 IT Consulting & Services 0.1
Construction 0.21
IT Consulting & Services 0.09

April-May Month Portfolio

Industry Change
Software 1.89
Auto 0.68
Industry Capital Goods 1.58
Oil -1.25
Banks 0.87
Auto Ancillaries -0.54
Pesticides -0.05
Consumer Non Durables 0.67
Transportation -0.29
Metals -0.4
Gas 0.09
Pharmaceuticals -0.19
Hardware -0.12
Textile -0.5
Chemicals -0.12

Siemens Share Benefit

Date Price Change % Change Beta
30, April 2009 3625.85 1.29
31, May 2009 4486 860.15 23.72 1.4

Add siemens to 4.47 which had no exposure in the month of December in the
portfolio. During that time siemens has grown from 3625.85 to 4486 Rs means
23.72% increase which fletched fund performance at good rate.

HDFC Equity Fund

Portfolio Top 10 Holdings For February

S. No. Company Industry % of NAV
1 Infosys Technologies Ltd. Software 8.78
2 State Bank of India Banks 7.92
3 Satyam Computer Services Ltd. Software 7.24
4 Bharat Heavy Electricals Ltd. Industrial Capital Goods 7.05
5 Oil & Natural Gas Corporation Ltd. Oil 6.58
6 Tata Motors Ltd. Auto 6.55
7 Maruti Udyog Ltd. Auto Ancillaries 6.04
8 ITC Ltd. Consumer Non Durables 5.97
9 Amtek Auto Ltd. Auto Ancillaries 5.48
Top 10 Holdings 61.61
Others Equity Holdings 38.39
TOTAL 100
 NAV Changed During the Month (GROWTH)
Date NAV Change % Change Beta
1, Feb 2009 113.063 0.83
28, Feb 2009 116.844 3.781 3.344 0.83

Compare returns with Sensex Movement

Date Closing Change % change
31-Jan-06 9236
28-Feb-
06 8800 436 -4.72

Industry Wise Allocation

January February
% Of % Of
Industry Allocation Industry Allocation
Software 22.03 Software 21.06
Auto 18.16 Industry Capital Goods 17.32
Industry Capital Goods 15.35 Auto 12.59
Banks 8.6 Consumer Non Durables 10.16
Oil 7.89 Auto Ancillaries 8.9
Auto Ancillaries 6.65 Banks 7.92
Consumer Non Durables 3.94 Oil 6.58
Pesticides 3.93 Pesticides 3.7
Transportation 2.84 Transportation 2.32
Gas 2.1 Metals 1.78
Metals Pharmaceuticals 1.45
Pharmaceuticals 1.42 Hardware 1.29
Hardware 1.38 Textile 2.09
Textile 2.04 Chemicals 0.67
Chemicals 0.7 IT Consulting & Services 0.12
IT Consulting & Services 0.1

Jan-Feb Month Portfolio

Industry Change
Software -0.97
Industry Capital Goods 1.97
Auto -5.57
Consumer Non Durables 6.22
Auto Ancillaries 2.25
Banks -0.68
Oil -1.31
Pesticides -0.23
Transportation -0.62
Metals -0.07
Pharmaceuticals 0.03
Hardware -0.09
Textile 0.05
Chemicals -0.03
IT Consulting & Services 0.02
 ITC Share Benefit

Date Price Change % Change

31, Jan 2006 154.8
28, Feb 2006 172.45 17.65 11.41

Add ITC to 5.97 which had no exposure in the month of January in the portfolio.
During that time ITC has grown from 154.8 to 172.45 Rs means 11.41% increase
which is higher than Sensex 4.54% growth, this decision gave return at 3.44%.

Crompton Greaves Share Benefit

%
Date Price Change Change
31, Jan
2006 906.35
28, Feb
2006 892.45 -13.9 -1.53

Reduce share of Crompton Greaves which had less exposure in the month of
February than January in the portfolio. During that time Crompton has felt from
906.35 to 892.45 Rs means 1.53% decrease. Due to this fund’s performance has not
felt.

HDFC Equity Fund

Portfolio Top 10 Holdings For March

% of
SR. No. Company Industry NAV
1 Infosys Technologies Ltd. Software 8.72
2 State Bank of India Banks 7.88
3 ITC Ltd. Consumer Non Durables 7.81
 4 Satyam Computer Services Ltd. Software 6.86
5 Tata Motors Ltd. Auto 5.87
6 Bharat Heavy Electricals Ltd. Industrial Capital Goods 5.71
7 Maruti Udyog Ltd. Auto Ancillaries 5.5
8 Crompton Greaves Ltd. Industrial Capital Goods 5.06
9 Siemens Ltd. Industrial Capital Goods 4.78
10 Amtek Auto Ltd. Auto Ancillaries 4.57
Top 10 Holdings 62.76
Others Equity Holdings 37.24
TOTAL 100

NAV Changed During the Month (GROWTH)

Date NAV Change % Change Beta

1, Mar 2009 116.844 0.88
31, Mar 2009 127.151 10.307 8.821 0.88

Compare returns with Sensex Movement

Date Closing Change % change

28-Feb-06 8800
31-Mar-06 9568.14 768.14 8.73

Industry Wise Allocation

February March
Industry % Of Allocation Industry % Of Allocation
Software 21.06 Software 18.09
Industry Capital Goods 17.32 Industry Capital Goods 17.35
Auto 12.59 Consumer Non Durables 12.46
Consumer Non Durables 10.16 Auto 11.37
Auto Ancillaries 8.9 Banks 7.88
Banks 7.92 Auto Ancillaries 7.67
Oil 6.58 Oil 3.86
Pesticides 3.7 Media & Entertainment 3.29
Transportation 2.32 Pesticides 2.87
Metals 1.78 Telecom- Services 2.65
Pharmaceuticals 1.45 Metals 2.13
Hardware 1.29 Transportation 1.86
Textile 2.09 Hardware 1.81
Chemicals 0.67 Textile 2.05
IT Consulting & Services 0.12 Pharmaceuticals 1.09
Chemicals 0.87
IT Consulting & Services 0.08

Feb-March Month Portfolio

Industry Change
Software -2.97
Industry Capital Goods 0.03
Consumer Non Durables 2.3
Auto -1.22
Banks -0.04
Auto Ancillaries -1.23
Oil -2.72
Media & Entertainment 3.29
Pesticides -0.83
Telecom- Services 2.65
Metals 0.35
Transportation -0.46
Hardware 0.52
Textile -0.04
Pharmaceuticals -0.36
Chemicals 0.2
IT Consulting & Services -0.04
 Crompton Greaves Share Benefit

Date Price Change % Change

28, Feb 2006 892.45
31, March 2006 1049.3 156.85 17.57

Add share of Crompton Greaves which had less exposure in the month of February in
the portfolio. During March Crompton has grown from 892.45 to 1049.3 Rs means
17.57% increase. So, these decision results in 8.4% return on fund.

Satyam Computer Share Benefit

Date Price Change % Change

28, Feb 2006 769.65
31, March 2006 848.5 78.85 10.24

Satyam computer has grown at the rate of 10.24% which is 20% higher than Sensex
growth in that time period.

Prudential ICICI Growth Fund

January

S. No Companies Industry % of NAV

1 Hindalco Industry Ltd. Non Ferrous Metals 5.43
2 Bharat Heavy Electricals Limited Industrial Capital Goods 4.16
3 Associated Cement Companies Ltd Cement 3.87
4 Oil & Natural Gas Company Ltd Oil 3.73
5 Grasim Industries Limited Cement 3.47
6 Reliance Industries Limited Petroleum Products 3.36
7 Satyam Computer Services Ltd. Software 3.14
8 Jaiprakash Associates Ltd Construction 3.08
9 Mahindra & Mahindra Limited Auto 3.03
10 ITC Limited Consumer Non Durables 3
Industry Wise Allocation

NAV Changed During the Month (GROWTH)

Date NAV Change % Change Beta
1, Jan 2009 68.7 0.98
31, Jan 2009 70.42 1.72 2.5 0.98

In January, ICICI Growth Fund has given only 2.5% returns where HDFC Equity
Fund has given 5.34% returns. So we can say that HDFC has performed better in
January.

Reliance Industry Share Benefit

Date Price Change % Change

31, Dec 2008 897.85
31, Jan 2009 713.9 -183.95 -20.4

In the month of January Reliance Industry’s share price has come down to 713.9 Rs
which is 20.4% lesser than December price. ICICI has exposure of reliance industry
in to portfolio which harms the fund’s overall returns.
 Jai Prakash Associate Share’s Benefit

Date Price Change % Change

31, Dec 2008 379.9
31, Jan 2009 408.25 28.35 7.46

ICICI has exposure of Jai Prakash Associates which has rose by 7.46% in January
month. HDFC Mutual fund did not have Jai Prakash’s exposure in their portfolio.

Prudential ICICI Growth Fund

February

S. No Companies Industry % of NAV

1 Bharat Heavy Electricals Limited Industrial Capital Goods 4.84
2 Jaiprakash Associates Ltd Construction 4.14
3 Reliance Industries Limited Petroleum Products 3.99
4 ITC Limited Consumer Non Durables 3.82
5 Grasim Industries Limited Cement 3.73
6 Associated Cement Companies Ltd Cement 3.71
7 Bajaj Auto Limited Auto 3.68
8 Satyam Computer Services Ltd. Software 3.45
9 Mahindra & Mahindra Limited Auto 3.44
10 Oil & Natural Gas Company Ltd Oil 3.44
Industry Wise Allocation

NAV Changed During the Month (GROWTH)

Date NAV Change % Change Beta
1, Feb 2009 70.42 0.96
28, Feb 2009 71.79 1.37 1.94 0.96

In February market has boomed by 4.54% where HDFC Equity fund has given 3.33%
returns. So it has performed similar to market trend but ICICI Growth fund has given
only 1.94% in same period. So, we can say that this fund has performed lower than
market.
 Prudential ICICI Growth Fund
March

S. No Companies Industry % of NAV

1 Bharat Heavy Electricals Limited Industrial Capital Goods 4.84%
2 Reliance Industries Limited Petroleum Products 4.64%
3 Larsen & Toubro Limited Industrial Capital Goods 4.03%
4 ITC Limited Consumer Non Durables 3.91%
5 Siemens India Limited Industrial Capital Goods 3.82%
6 Bajaj Auto Limited Auto 3.52%
7 Associated Cement Companies Ltd Cement 3.49%
8 Mahindra & Mahindra Limited Auto 3.32%
9 Cipla Limited Pharmaceuticals 3.28%
10 Grasim Industries Limited Cement 3.17%

Industry Wise Allocation

 NAV Changed During the Month (GROWTH)
Date NAV Change % Change Beta
1, March 2009 71.79 0.78
31, March 0.78
2009 80.94 9.15 12.74

ICICI Growth fund has grown up by 12.74% in March where HDFC Equity Fund has
grown only by 8.8%

CIPLA Share’s Benefit

Date Price Change % Change

31, Dec 2008 552.15
31, Jan 2009 662.25 110.1 19.94

ICICI has CIPLA script in their portfolio which has grown to 662.25 Rs. It has rose
by 19.94% in March month. HDFC did not have CIPLA’s exposure. This script has
the main reason behind ICICI better performance over HDFC.
Reliance Growth Fund
January
S. No. Companies % of NAV
1 Bharat Earth Movers Ltd. 4.96
2 Kirloskar Brothers 3.84
3 Crompton Greaves Ltd. 2.99
4 Hindustan Lever Ltd. 2.64
5 State Bank of India 2.58
6 Strides Arcolabs Ltd. 2.35
7 United Phosphorous 2.26
8 Jindal Saw Ltd. 2.2
9 Jaiprakash Associates 2.11
10 Reliance Industries Ltd. 2.08

Industry Wise Allocation

S. No. Industry % Of Allocation
1 Industry Capital Goods 10.44
2 Consumer Non Durable 10.41
3 Industrial Products 9.34
4 Software 8.92
5 Banks 7.25
6 Pharmaceuticals 6.1
7 Ferrous Metals 5.16
8 Fertilizers 3.09
9 Chemicals 3.09
10 Construction 2.8
11 Auto Ancillaries 2.33
 12 Pesticides 2.26
13 Petroleum Products 2.08
14 Auto 2.05
15 Telecom Services 1.86

Reliance Growth Fund

March
S. No. Companies % of NAV
1 Bharat Earth Movers Ltd. 4.91
2 Reliance Industries Ltd. 4.6
3 Kirloskar Brothers 4.18
4 Bombay Dying Ltd. 2.66
5 Bank of Baroda 2.58
6 Crompton Greaves Ltd. 2.57
7 Jaiprakash Associates 2.31
8 Strides Arcolabs Ltd. 2.16
9 Jindal Saw Ltd. 2.1
10 JSW Steels Ltd. 2.04

Industry Wise Allocation

S. No. Industry % Of Allocation

1 Industry Capital Goods 10.76
2 Industrial Products 10.19
3 Consumer Non Durable 8.37
 4 Software 8.17
5 Pharmaceuticals 7.78
6 Banks 7.19
7 Ferrous Metals 6.98
8 Petroleum Products 5.95
9 Chemicals 4.55
10 Construction 3.11
11 Fertilizers 2.78
12 Telecom Services 2.56
13 Auto 2.34
14 Auto Ancillaries 2.19
15 Pesticides 2.14

NAV Changed During the Month (GROWTH)

Date NAV Change % Change Beta

1, Mar 2009 207.15 0.87
31, Mar 2009 229.76 22.61 10.91 0.87

Reliance growth fund has given 10.91% returns to investors in the month of March
where market has boomed by only 8.4%. In the same month HDFC Equity fund has
given only 8.84 % returns.

Kirloskar Brother Share’s Benefit

Date Price Change % Change

28, Feb 2009 196.55
31, Mar 2009 291.7 95.15 48.41

Kirloskar Brother Share price has risen from 196.55 to 291.7 Rs. This means 48.41%
increase in March month. HDFC Mutual Fund had not this script into their portfolio.
 Bombay Dyeing Share’s Benefit

Date Price Change % Change

28, Feb 2009 375.35
31, Mar 2009 596 220.45 58.71

Bombay Dyeing shares have grown by 58.71% where the overall Sensex has grown
only by 8.76% Reliance has 4.18% exposure to this script.

JSW Steel Share’s Benefit

Date Price Change % Change

28, Feb 2009 205.1
31, Mar 2009 302.85 97.75 47.61

In the month of March JSW Steel has moved to 302.85 Rs which was 47.61%
increase. Reliance has 2.04% exposure to this script.
 HDFC Equity Fund

February

S. No. Company % of NAV

1 Infosys Technologies Ltd. 8.78
2 State Bank of India 7.92
3 Satyam Computer Services Ltd. 7.24
4 Bharat Heavy Electricals Ltd. 7.05
5 Oil & Natural Gas Corporation Ltd. 6.58
6 Tata Motors Ltd. 6.55
7 Maruti Udyog Ltd. 6.04
8 ITC Ltd. 5.97
9 Amtek Auto Ltd. 5.48
10 Crompton Greaves Ltd. 4.8
11 Siemens Ltd. 4.25
12 United Phosphorus Limited 3.7
13 Nestle India Ltd. 2.87
14 Balkrishna Industry Ltd. 2.5
15 I-flex Solutions Limited 2.42
16 Container Corporation of India Ltd. 2.32
17 HCL Technology Ltd. 2.29
18 ISMT Ltd. 1.78
19 Dishman Pharmaceuticals & Chemicals 1.45
20 Britannia Industries Limited 1.32
21 CMC Ltd. 1.29
22 Larsen & Toubro Ltd. 1.22
23 Indo Rama Synthetics (India) Limited 1.06
24 Himatsinka Seilde Ltd. 1.03
25 J K Industries Limited 0.92
26 Savita Chemicals Limited 0.67
27 Datamatics Technologies Limited 0.33
TOTAL 100
 March

S. No. Company % of NAV

1 Infosys Technologies Ltd. 8.72
2 State Bank of India 7.88
3 ITC Ltd. 7.81
4 Satyam Computer Services Ltd. 6.86
5 Tata Motors Ltd. 5.87
6 Bharat Heavy Electricals Ltd. 5.71
7 Maruti Udyog Ltd. 5.5
8 Crompton Greaves Ltd. 5.06
9 Siemens Ltd. 4.78
10 Amtek Auto Ltd. 4.57
11 ONGC 3.86
12 Zee Tele films Ltd. 3.29
13 United Phosphorus Limited 2.87
14 Nestle India Ltd. 2.78
15 Bharti Tele-ventures Ltd. 2.65
16 Balkrishna Industry Ltd. 2.35
17 HCL Technology Ltd. 2.25
18 ISMT Ltd. 2.13
19 Hindustan Lever Ltd. 1.87
20 Container Corporation of India Ltd. 1.86
21 CMC Ltd. 1.81
22 Larsen & Toubro Ltd. 1.8
23 Himatsinka Seilde Ltd. 1.15
24 Disahman Pharmaceuticals & Chemicals 1.09
25 Indo Rama Synthetics (India) Limited 0.9
26 Savita Chemicals Limited 0.87
27 J K Industries Limited 0.75
28 Datamatics Technologies Limited 0.26
TOTAL 100
Change in Portfolio

Companies Change
United Phosphorus Limited -0.83
Tata Motors Ltd. -0.68
State Bank of India -0.04
Siemens Ltd. 0.53
Savita Chemicals Limited 0.2
Satyam Computer Services Ltd. -0.38
ONGC -2.72
Nestle India Ltd. -0.09
Maruti Udyog Ltd. -0.54
Larsen & Toubro Ltd. 0.58
J K Industries Limited -0.17
ITC Ltd. 1.84
ISMT Ltd. 0.35
Infosys Technologies Ltd. -0.06
Indo Rama Synthetics (india) Limited -0.16
Himatsinka Seilde Ltd. 0.84
HCL Tecnology Ltd. -1.14
Disahman Pharmaceuticals & Chemicals 0.8
Datamatics Technologies Limited 0.76
Crompton Greaves Ltd. -4.54
Container Corporation of India Ltd. 2.74
CMC Ltd. 0.57
Bharat Heavy Electricals Ltd. -5.24
Balkrishna Industry Ltd. 0.15
Amtek Auto Ltd. 0.23
Zee Tele Films Ltd. 3.29
Bharti Tele-ventures Ltd. 2.65
Hindustan Lever Ltd. 1.87
I-Flex Solution Ltd. -2.42
Britannia Industry Ltd. -1.32
 Zee Tele Films Share's Effect
Date Price Change % Change
28, Feb 2009 176.6
31, Mar 2009 239 62.4 35.33

Fund adds exposure of zee tele films into portfolio by 3.29 % which has increased by
35.33% during March. In the same time period market has boomed only by 8.76%.

I- Flex Share's Effect

Date Price Change % Change
28, Feb 2009 1063.5
31, Mar 2009 1327 263.5 24.77

Fund eliminate I flex solution from its portfolio which has increased by 24.77%
during March.

Hindustan Lever Ltd. Share's Effect

Date Price Change % Change
28, Feb 2009 243.7
31, Mar 2009 272 28.3 11.61

Fund added Hindustan Lever Ltd. into their portfolio which has risen by 11.61%
during March.
 ITC Ltd. Share's Effect
Date Price Change % Change
28, Feb 2009 172.45
31, Mar 2009 195.15 22.7 13.16

Fund added ITC Ltd. into portfolio which has risen 13.16% during March.

Crompton greaves Ltd. Share's Effect

Date Price Change % Change
28, Feb 2009 892
31, Mar 2009 1049.5 157.5 17.61

Fund reduces the share of Crompton from portfolio which has increased by 17.61%
during March.

Core & Satellite Fund

Nature of scheme : Open ended growth scheme

Objective: To generate capital appreciation through equity investment in companies
whose shares are quoting at prices below their true value.
Fund Manager : Dhawal Mehta
Inception Date : September 17, 2004
 Core & Satellite Fund
Portfolio Top 10 Holdings For October
S. No. Company Industry % To NAV
1 State Bank of India Banks 8.83
2 Bharat Heavy Electricals Ltd. Industrial Capital Goods 7.95
3 Infosys Technologies Ltd. Software 7.73
4 Tata Motors Ltd. Auto 7.17
5 Satyam Computer Services Ltd. Software 6.34
6 ITC Ltd. Consumer Capital Goods 5.27
7 Crompton Greaves Ltd. Industrial Capital Goods 4.96
8 Hindalco Industries Ltd. Non- Ferrous Metals 4.74
9 United Phosphorus Ltd. Pesticides 4.22
10 Hindustan Construction Company Ltd. Construction 4.07
Top 10 Holdings 61.28
Others Equity Holdings 28.72
TOTAL 100

NAV Changed During the Month (GROWTH)

Date NAV Change % Change Beta

1, oct 2008 17.18 1.03
31, oct 2008 15.699 (-1.481) (-8.6) 1.03

Compare returns with Sensex Movement

Date Closing Change % change

30-Sep-08 8,634.48

31-Oct-08 7,892.32 (-742) (-8.59)

Core & Satellite Fund

Portfolio Top 10 Holdings For December

% To
S. No. Company Industry NAV
1 Satyam Computer Services Ltd. Software 6.78
2 Bharat Heavy Electricals Ltd. Industrial Capital Goods 6.65
3 Tata Motors Ltd. Auto 6.33
4 State Bank of India Banks 6.21
5 Infosys Technologies Ltd. Software 5.5
6 Crompton Greaves Ltd. Industrial Capital Goods 5.35
7 Hindustan Construction Company Ltd. Construction 5.18
8 ITC Ltd. Consumer Non Durable 5.15
9 Hindalco Industries Ltd. Non- Ferrous Metals 4.14
10 Hindustan zinc Ltd. Non- Ferrous Metals 3.75
Top 10 Holdings 55.04
Others Equity Holdings 28.72
Total 100

NAV Changed During the Month (GROWTH)

Date NAV Change % Change Beta

1, Dec 2008 17.542 0.87
30, Dec 2008 18.822 1.28 7.2 0.87

Compare returns with Sensex Movement

Date Closing Change % change

30-Nov-
08 8,788.81
30-Dec-08 9,397.93 609 6.92
 Industry Wise Allocation

October December
% Of
Industry % Of Allocation Industry Allocation
Industry Capital Goods 22.15 Industry Capital Goods 21.42
Software 15.61 Software 14.03
Banks 12.61 Auto Ancillaries 10.76
Auto Ancillaries 11.12 Banks 9.75
Non-Ferrous Metals 8.48 Non-Ferrous Metals 7.89
Auto 7.17 Auto 6.33
Pesticides 5.42 Construction 5.18
Consumer Non Durable 5.27 Consumer Non Durable 5.15
Construction 4.07 Pesticides 4.96
Industrial Products 2.67 Industrial Products 2.94
Chemicals 1.71 Chemicals 2.12
Consumer Durables 1.29 Consumer Durables 1.43
Power 0.53

Oct-Dec month portfolio

Industry Change
Industry Capital Goods -0.73
Software -1.58
Auto Ancillaries -0.36
Banks -2.86
Non-Ferrous Metals -0.59
Auto -0.84
Construction -0.5
Consumer Non Durable 1.11
Pesticides -0.12
Industrial Products 0.27
Chemicals 0.41
Consumer Durables 0.14
 Hindustan Construction Ltd. Share Benefit
Date Price Change % Change
31, Oct 2008 853.85
31, Dec2008 127.2

Fund bought Hindustan Construction Ltd. shares.

Core & Satellite Fund

Portfolio Top 10 Holdings For January
S. No. Company Industry % To NAV
1 Infosys Technologies Ltd. Software 8.94
2 Tata Motors Ltd. Auto 8.48
3 Bharat Heavy Electricals Ltd. Industrial Capital Goods 8.08
4 Satyam Computer Services Ltd. Software 6.44
5 Crompton Greaves Ltd. Industrial Capital Goods 5.98
6 State Bank of India Banks 5.69
7 ITC Ltd. Consumer Non Durable 5.26
8 Hindustan zinc Ltd. Non- Ferrous Metals 5.25
9 Hindalco Industries Ltd. Non- Ferrous Metals 4.79
10 United Phosphorus Ltd. Pesticides 3.91
Top 10 Holdings 62.82
Others Equity Holdings 37.18
Total 100

NAV Changed During the Month (GROWTH)

Date NAV Change % Change Beta

1, Jan 2009 18.822 0.90
31, Jan 2009 20.609 1.78 9.49 0.90
 Compare returns with Sensex movement

Date Closing Change % change

30-Dec-
08 9,397.93
31-Jan-09 9,919.89 522 5.55

Industry Wise Allocation

December January
Industry % Of Allocation Industry % Of Allocation
Industry Capital Goods 21.42 Industry Capital Goods 24.12
Software 14.03 Software 16.99
Auto Ancillaries 10.76 Non-Ferrous Metals 10.04
Banks 9.75 Banks 9.73
Non-Ferrous Metals 7.89 Auto Ancillaries 8.99
Auto 6.33 Auto 8.48
Construction 5.18 Consumer Non Durable 5.26
Consumer Non Durable 5.15 Pesticides 3.91
Pesticides 4.96 Construction 3.73
Industrial Products 2.94 Industrial Products 3.52
Chemicals 2.12 Consumer Durables 1.43
Consumer Durables 1.43 Chemicals 1.01

Dec-Jan month portfolio

Industry Change
Industry Capital Goods 2.7
Software 2.96
Non-Ferrous Metals 2.15
Banks -0.02
Auto Ancillaries -1.77
Auto 2.15
Consumer Non Durable 0.11
Pesticides -1.05
Construction -1.45
Industrial Products 0.58
 Consumer Durables Nil
Chemicals -1.11

Infosys Share effect

Date Price Change % Change
31, Dec2008 2979.4
31, Jan 2009 2880.3 -99.1 3.33

Fund has increased the share of Infosys in to portfolio by 3.5%. The share price of
Infosys during that time period has failed down to 2880.3 Rs. Its 3.33% lower than
the price in the beginning of January.

Core & Satellite Fund

Portfolio Top 10 Holdings For February

S. No. Company Industry % To NAV
1 Bharat Heavy Electricals Ltd. Industrial Capital Goods 8.87
2 Tata Motors Ltd. Auto 8.74
3 Infosys Technologies Ltd. Software 8.53
4 State Bank of India Banks 7.52
5 Satyam Computer Services Ltd. Software 6.45
6 Hindustan zinc Ltd. Non- Ferrous Metals 6.05
7 Crompton Greaves Ltd. Industrial Capital Goods 5.72
8 ITC Ltd. Consumer Non Durable 5.7
9 Hindalco Industries Ltd. Non- Ferrous Metals 4.22
10 Bharti Shipyard Ltd. Industrial Capital Goods 3.84
Top 10 Holdings 65.64
Others Equity Holdings 34.39
Total 100

NAV Changed During the Month (GROWTH)

Date NAV Change % Change Beta

 1, Feb 2009 20.609 0.91
28, Feb 2009 21.159 0.55 2.66 0.91

Compare returns with Sensex Movement

%
Date Closing Change Change
31-Jan-09 9,919.89
28-Feb-09 8800 1119.89 -11.29

In February fund has given 2.66% returns on investment but in the same time Sensex
has decreased by 4.54%. So, fund has performed higher than market trend.

Industry Wise Allocation

January February
Industry % Of Allocation Industry % Of Allocation
Industry Capital Goods 24.12 Industry Capital Goods 21.64
Software 16.99 Software 16.63
Non-Ferrous Metals 10.04 Banks 10.79
Banks 9.73 Non-Ferrous Metals 10.27
Auto Ancillaries 8.99 Auto Ancillaries 9.02
Auto 8.48 Auto 8.74
Consumer Non Durable 5.26 Consumer Non Durable 5.7
Pesticides 3.91 Pesticides 3.78
Construction 3.73 Construction 3.63
Industrial Products 3.52 Industrial Products 3.51
Consumer Durables 1.43 Power 2.62
Chemicals 1.01 Consumer Durables 1.49
 Chemicals 0.89

Jan-Feb month portfolio

Industry Change
Industry Capital Goods -2.48
Software -0.36
Banks 1.06
Non-Ferrous Metals 0.23
Auto Ancillaries 0.03
Auto 0.26
Consumer Non Durable 0.44
Pesticides -0.13
Construction -0.16
Industrial Products -0.01
Power 2.62
Consumer Durables 0.06
Chemicals -0.12

United Phosphorus Ltd. Share’s effect

Date Price Change % Change

31, Jan 2009 272
28, Feb 2009 270 2 0.07

Reduce the share of united phosphorus ltd. from portfolio. The share price of united
has fall during February.
 Core & Satellite Fund
Portfolio Top 10 Holdings For March
S. No. Company Industry % To NAV
1 Tata Motors Ltd. Auto 7.99
2 Bharat Heavy Electricals Ltd. Industrial Capital Goods 7.87
3 Infosys Technologies Ltd. Software 7.53
4 Crompton Greaves Ltd. Industrial Capital Goods 7.53
5 Hindustan zinc Ltd. Non- Ferrous Metals 7.34
6 State Bank of India Banks 6.95
7 ITC Ltd. Consumer Non Durable 6.62
8 Satyam Computer Services Ltd. Software 5.96
9 Hindalco Industries Ltd. Non- Ferrous Metals 4.29
10 Hindustan Construction Company Ltd. Construction 3.84
Top 10 Holdings 65.92
Others Equity Holdings 34.08
Total 100

NAV Changed During the Month (GROWTH)

Date NAV Change % Change Beta
1, Mar 2009 21.159 0.86
31, Mar 2009 23.82 2.661 12.57 0.86

Compare returns with Sensex Movement

Date Closing Change % change
 28-Feb-06 8800
31-Mar-
06 11,279.96 2479.96 28.18

Industry Wise Allocation

February March
Industry % Of Allocation Industry % Of Allocation
Industry Capital Goods 21.64 Industry Capital Goods 19.76
Software 16.63 Software 15.12
Banks 10.79 Non-Ferrous Metals 11.63
Non-Ferrous Metals 10.27 Banks 10.62
Auto Ancillaries 9.02 Auto Ancillaries 8.47
Auto 8.74 Auto 7.99
Consumer Non Durable 5.7 Consumer Non Durable 6.62
Pesticides 3.78 Construction 3.84
Construction 3.63 Power 3.16
Industrial Products 3.51 Pesticides 3.15
Power 2.62 Industrial Products 3
Consumer Durables 1.49 Consumer Durables 1.51
Chemicals 0.89 Chemicals 0.91

Feb-March month portfolio

Industry Change
Industry Capital Goods -1.88
Software -1.51
Non-Ferrous Metals 1.34
Banks -0.18
Auto Ancillaries -0.55
Auto -0.75
Consumer Non Durable 0.92
Construction 0.21
Power 0.54
Pesticides -0.63
Industrial Products -0.51
Consumer Durables 0.02
Chemicals 0.02

Bharti Shipyard Ltd. Share's effect

Date Price Change % Change

28, Feb 2009 383.85
31, March 2009 384.5 0.65 0.016

Reduce the share of Bharti ship yard in the month of March. The price of bhatri’s
share has just increased by 0.016 % in March. Where the over all share market has
boomed by 8.76%. in the same time fund increased the share of Crompton greaves in
the portfolio which was boomed by 17.57%.

Portfolio as of January 31, 2009

DSP Merrill Lynch India T.I.G.E.R Fund

Company Industry % to NAV

L&T Industrial Capital Goods 4.79
Reliance Industries Petroleum Products 4.65
BHEL Industrial Capital Goods 4.64
ONGC Oil 3.05
Siemens Industrial Capital Goods 2.95
Thermax Industrial Capital Goods 2.74
Grasim Industries Cement 2.67
Jyoti Structures Industrial Capital Goods 2.65
HDFC Finance 2.18
Crompton Greaves Industrial Capital Goods 2.15
 NAV Changed During the Month (GROWTH)
Date NAV Change % Change Beta
1, Jan 2009 21.5 1.6
31, Jan 2009 23.62 2.12 9.86 1.6

L&T share price

Date Price Change % Change
1, Jan 2009 1825.65
31, Jan 2009 2172.1 346.45 18.97

DSP fund has given more returns than HDFC Core & Satellite fund. DSP has exposure of L&
T which has grown by 18.97% during January. In January market has grown up only by
5.55%.

Portfolio as of February 28, 2006

DSP Merrill Lynch India T.I.G.E.R Fund

Company Industry % to NAV

L&T Industrial Capital Goods 4.29%
BHEL Industrial Capital Goods 4.25%
Reliance Industries Petroleum Products 3.74%
Grasim Industries Cement 3.14%
Siemens Industrial Capital Goods 2.99%
Bharati TeleVentures Telecom- Services 2.67%
Thermax Industrial Capital Goods 2.55%
ONGC Oil 2.27%
HDFC Finance 2.19%
Jyoti Structures Industrial Capital Goods 2.14%
 NAV Changed During the Month (GROWTH)
Date NAV Change % Change Beta
1, Feb 2009 23.62 1.78
28, Feb 2009 24.46 0.84 3.55 1.78

Grasim Industries share's price

Date Price Change % Change

1, Feb 2009 1454.25
28, Feb 2009 1742.6 288.35 19.82

DSP has given 3.55% returns where HDFC has given only 2.55% returns in the month of
February. DSP has exposure of Grasim Industry in their portfolio. Grasim has increased by
19.82% during February month.

Portfolio as of March 31, 2009

DSP Merrill Lynch India T.I.G.E.R Fund

% to
Company Industry NAV
Reliance Industries Petroleum Products 5.87%
Reliance Communications Telecom- Services 4.41%
BHEL Industrial Capital Goods 4.28%
Grasim Industries Cement 3.56%
L&T Industrial Capital Goods 3.48%
Bharati TeleVentures Telecom- Services 3.17%
Siemens Industrial Capital Goods 2.82%
Thermax Industrial Capital Goods 2.56%
Jyoti Structures Industrial Capital Goods 2.26%
Crompton Greaves Industrial Capital Goods 2.13%

NAV Changed During the Month (GROWTH)

Date NAV Change % Change Beta
1, Mar 2009 24.46 1.69
31, Mar 2009 27.36 2.9 11.85 1.69

Hindalco share's price

Date Price Change % change

1, Mar 2009 75
31-Mar-09 182.7 107.7 143.6

In March, DSP has given 11.85% returns where HDFC has given 12.54% returns.
HDFC had Hindalco in their portfolio which has grown by 143.6% in March.
ICICI Dynamic Plan

January Portfolio

S. No. Companies % of NAV

1 Deccan Chronicle Holdings Ltd 7.18
2 Subex Systems Limited 4.02
3 Hindalco Industries Limited 3.89
4 E.I.D. Parry (India) Limited 3.49
5 State Bank of India 3.38
6 Bajaj Hindustan Limited 3.35
7 Reliance Industries Limited 3.18
8 Larsen & Toubro Limited 3.12
9 Sterlite Industries (India) Limited 2.98
10 Grasim Industries Limited 2.98
Industry Wise Allocation

NAV Changed During the Month (GROWTH)

Date NAV Change % Change Beta
1, Jan 2009 42.68 0.91
31, Jan 2009 44.51 1.83 4.28 0.91

Sterlite share's price

Date Price Change % change

1, Jan 2009 1074.75
31, Jan 2009 1363.45 288.75 26.86
Fund has 2.98% exposure of sterlite which has grown 26.86% in January month.

ICICI Dynamic Plan

February Portfolio

S. No. Companies % of NAV

1 Deccan Chronicle Holdings Ltd 8.65
2 Jain Irrigation Systems Limited 4.5
3 Subex Systems Limited 4.01
4 E.I.D. Parry (India) Limited 3.65
5 Larsen & Toubro Limited 3.44
6 Grasim Industries Limited 3.34
7 Hindalco Industries Limited 3.21
8 Reliance Industries Limited 3.16
9 Century Textiles & Industries Ltd 3.14
10 Amtek Ltd. 3.01

Industry Wise Allocation

 NAV Changed During the Month (GROWTH)
Date NAV Change % Change Beta
1, Feb 2009 44.51 0.98
28, Feb 2009 46.22 1.71 3.64 0.98

Century textile share's price

Date Price Change % Change
1, Feb 2009 2.9
28, Feb 2009 2.9 Nil Nil

Dynamic plan has 3.14% exposure of this script which has grown by 0 % means its
share price remained same during the month of February.
ICICI Dynamic Plan
March Portfolio

S. No. Companies % of NAV

1 Deccan Chronicle Holdings Ltd 7.31
2 Reliance Industries Limited 5.17
3 Triveni Engineering & Industries Ltd 4.98
4 Jain Irrigation Systems Limited 3.89
5 Subex Systems Limited 3.7
6 Century Textiles & Industries Ltd 3.46
7 E.I.D. Parry (India) Limited 3.36
8 Tata Consultancy Services Limited 3.18
9 Grasim Industries Limited 2.97
10 Larsen & Toubro Limited 2.93

Industry Wise Allocation

 NAV Changed During the Month (GROWTH)
Date NAV Change % Change Beta
1, March 2009 46.22 0.95
31, March 0.95
2009 53.35 7.13 15.42

Triveni share's price

Date Price Change % change

1, Mar 2009 76.95
31-Mar-09 125.95 49 64.47

Fund has increased triveni sharein portfolio to 4.98% which has grown by 64.47%
during March.
 Kotak Opportunity
January

S. No. Companies Industry % of NAV

1 National Aluminium Company Ltd Non - Ferrous Metals 6.66
2 Larsen And Toubro Ltd. Industrial Capital Goods 5.49
3 Jaiprakash Associates Ltd Construction 5.06
4 Punjab National Bank Banks 4.12
5 Satyam Computer Services Ltd. Software 3.59
6 Infosys Technologies Ltd. Software 3.57
7 Shree Renuka Sugars Ltd. Consumer Non Durables 3.5
8 Mahindra & Mahindra Ltd. Auto 3.38
9 Areva T and D India Ltd. Industrial Capital Goods 3.23
10 Alembic Ltd. Pharmaceuticals 3.11

Industry Wise Allocation

 NAV Changed During the Month (GROWTH)

Date NAV Change % Change Beta

1, Jan 2009 20.45 1.25
31, Jan 2009 22.021 1.571 7.68 1.25

Kotak Opportunity
February
S. No. Companies Industry % of NAV
1 Bajaj Auto Ltd. Auto 5.86
2 Larsen And Toubro Ltd. Industrial Capital Goods 5.31
3 Jaiprakash Associates Ltd Construction 4.53
4 Punjab National Bank Banks 4.51
5 Mahindra & Mahindra Ltd. Auto 4.23
6 Tata Steel Limited. Ferrous Metals 4.2
7 Areva T and D India Ltd. Industrial Capital Goods 3.47
8 Balrampur Chini Mills Ltd Consumer Non Durables 3.46
9 Satyam Computer Services Ltd. Software 3.25
10 Jindal Steel & Power Ltd. Ferrous Metals 3.18

Industry Wise Allocation

NAV Changed During the Month (GROWTH)
Date NAV Change % Change Beta
1, Feb 2009 22.021 1.12
28, Feb 2009 23.225 1.2 5.46 1.12

Kotak Opportunity
March
% of
S. No. Companies Industry NAV
1 Jindal Steel & Power Ltd. Ferrous Metals 5.1
2 Tata Steel Limited. Ferrous Metals 4.64
3 National Aluminium Company Ltd Non - Ferrous Metals 4.38
4 Sterlite Industries (India) Ltd Non - Ferrous Metals 4.17
5 Satyam Computer Services Ltd. Software 3.93
6 Larsen And Toubro Ltd. Industrial Capital Goods 3.92
7 Maharashtra Seamless Ltd. Ferrous Metals 3.49
8 Ultratech Cement Ltd. Cement 3.37
9 Tata Chemicals Ltd. Fertilizers 3.27
10 Bajaj Auto Ltd. Auto 3.25
Industry Wise Allocation

NAV Changed During the Month (GROWTH)

Date NAV Change % Change Beta
1, March 2009 23.225 1.20
31, March 1.20
2009 25.89 2.66 11.47
 CONCLUSION

The performance of mutual funds in India in the initial phase was not even closer to
satisfactory level. People rarely understood, and of course investing was out of
question. But yes, some 24 million shareholders were accustomed with guaranteed
high returns by the beginning of liberalization of the industry in 1992. This good
record of UTI became marketing tool for new entrants. The expectations of investors
touched the sky in profitability factor. However, people were miles away from the
preparedness of risks factor after the liberalization.
The annual composite rate of growth is expected 13.4% during the rest of the
decades. In the last 5 years we have seen annual growth rate of 9%. According to the
current growth rate, by year 2010, mutual fund assets will be double.
The government is also helping in boosting mutual fund industry. Government is
emphasizing a lot on infrastructure development and social spending and yet targeting
a lower fiscal deficit. FIIs continued to be positive on emerging markets in general
and the Indian markets in particular. FIIs buying have considerable portion in mutual
funds buying.

Key Points:

 Almost 100% growth in the last 6 years.(excepting 2008)

 Our saving rate is over 30%, highest in the world. Only channel zing these savings in
mutual funds sector is required.
 We have some 70 mutual funds which are much less than US having more than 800.
There is a big scope for expansion.
 'B' and 'C' class cities are growing rapidly. Today most of the mutual funds are
concentrating on the 'A' class cities. Soon they will find scope in the growing cities.
 SEBI allowing the MFs to launch commodity mutual funds.
 This year budget has increased the limit of investment in overseas market by mutual
funds to 33-35%.
 During last financial year investment habit of India has increased by 25 % and it is
expected to grow by 30 % this year.
 RECOMMENDATIONS

Studying the mutual fund industry I came to know that there are more then 700 types
of funds available in the market. What I see that most of the fund managers who are
investing in equity market are putting their funds into large cap funds which is of
course more secure but it is giving less return to the investors. i thought of preparing
my own portfolio by investing 25 percent in money market and the rest of the 75
percent in mid cap equity To provide investors with opportunities for long term
growth in capital along with the liquidity of an open ended scheme by investing
predominantly in a well diversified basket of equity stocks of companies and in debt
and money market instruments.. The portfolio is mentioned below:-
 MY LEARNING FROM PROJECT

I have learnt many things which I might not be able to learn under class
room training like looking at the stock market terminal and analyzing the
stocks and thereby deducing about their performance and thus designing
the portfolio on the basis of their performances. I want to share some of
experience or learning with you.

 First and the most important I learnt about Mutual Fund Industry. Before
this project I dint have much knowledge about Mutual funds. But now I
have good knowledge about Mutual Funds.

 I learnt about marketing elements also. How the companies, banks and
brokerage houses market their products in front of customer in presence
of competitor’s products.

 I learnt about mutual funds as well as other products like insurance,

DMAT account, IPO, some of banking product and transactions and
some financial services offered by Angel Broking Ltd.

 I also learnt about the risk factor calculation of the mutual funds, how the
various broking firms calculate the risk factors of various mutual funds.
 WEBOGRAPHY

 hdfcfund.com
 google.com
 altavista.com
 investmart.com
 icicidirect.com
 amfiindia.com
 nseindia.com
 mutualfundsindia.com

BIBLIOGRAPHY

 Book on “Portfolio Management” by ICFAI Press

 Magazine “AAG” by HDFC Bank, April issue.
 Business world