A

PROJECT REPORT
ON
A Study of Mutual fund: - Comparison of Various Scheme Under Equity
WEALTHIER INDIA

A Summer Internship Project (SIP) Done in

Finance
Submitted in Partial Fulfilment of the Requirement for the Award Of degree Of
Master Of Management Studies (MMS) Under the University Of Mumbai
Submitted By
Shubham Dubey
Roll No. MMS0108
Batch:2020-21
Under The Guidance Of
Prof.
Rajani Mathur
Bharati Vidyapeeth’s
Institute of Management Studies & Research
Navi Mumbai
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 ACKNOWLEDGEMENT

With regards to Wealthier India, I Would like to Thank each and everyone associated
with this company for their help and support and guidance whenever required.
My heartfelt gratitude is towards our Industry guide Mr. Aakash Baberwal, who
devoted his valuable time for our assistance and extended his technical support for this
project. I would like to extend my gratitude towards my mentor
Prof. Rajani Mathur for her excellent guidance throughout the project I take this
opportunity to extend my gratitude towards our institute director Dr. Anjalikalse.
Special thanks are reserved for BharatiVidhyapeeth’s Institute of Management
Studies and Research for proving this wonderful opportunity to get us acquainted with
the corporate culture.

Shubham Dubey

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(iii)
 CERTIFICATE
This is to certify that Summer Internship Project (SIP) titled is A Study of Mutual
fund: - Comparison of Various Scheme Under Equity successful done by Mr.
Shubham dubey BATCH: 2020-2022, A student of BharatiVidhyapeeth’s Institute of
Management Studies and Research, Submitted in Partial Fulfilment of Master of
Management Studies under the University of Mumbai from 15 July 2021 at Wealthier
India

Date: …………………………
…………………………………
Prof. Rajani Mathur
Project Guide
BVIMSR Dr. Anjali Kalse
I/C Director
BVIMSR

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 EXECUTIVE SUMMARY

The mutual fund is an untapped area which is bound to be the next growth story.
while this area had been on downward track science 2008 , it has started showing gings
of recovery this project emphasis on mutual fund : Compression of various scheme
under equity conducted at Wealthier India In this project I have analysed the mutual
fund scheme , particularly the equity Diversified open ended (Growth) scheme and
compared schemes of various fund houses namely ICICI PRUDENTIAL, SBI and Axis
to evaluated in which schemes to invest & from which to switch and current
performance and position of these schemes as well.
In few years Mutual Fund has emerged as a tool for ensuring one’s financial well-
being. mutual fund has not only contributed to the India growth story but have also
helped Families tap into the success of India Industry as Information as Awareness is
rising more and more people are enjoying the benefit of investing in mutual fund The
main reason the number of retail mutual fund investors remain small is that nine ten
people with income in India do not know the mutual fund exist. But once people are
aware of mutual fund investment opportunities the number who decide to invest in
mutual fund increase to as many as one in five people The trick for converting person
with no knowledge of Mutual fund to a new mutual fund customer is to understand
which of the potential investor are more likely to buy mutual fund and to use the right
argument in the sales process that customer will accept as important and relent to
their decision. "This Project gave me a great learning experience and at the same time
it gave me enough scope to
implement my analytical ability. The analysis and advice presented in this Project
Report is based on
market research on the saving and investment practices of the investors and
preferences of the
investors for investment in Mutual Funds. This Report will help to know about the
investors’
Preferences in Mutual Fund means Are they prefer any particular Asset Management
Company
(AMC), Which type of Product they prefer, Which Option (Growth or Dividend) they
prefer or Which
Investment Strategy they follow (Systematic Investment Plan or One time Plan). This
Project as a
whole can be divided into two parts.
The first part gives an insight about Mutual Fund and its various aspects, the
Company Profile,
Objectives of the study, Research Methodology. One can have a brief knowledge about
Mutual Fund
and its basics through the Project.
The second part of the Project consists of data and its analysis collected through
survey done on 200
people. For the collection of Primary data, I made a questionnaire through Google
Form and surveyed
of 200 people. I studied about the products and strategies of other AMCs in Mumbai to
know why
people prefer to invest in those AMCs. This Project covers the topic “THE MUTUAL
FUND IS"

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 “MUTUAL FUNDS:
Comparison of various schemes under equity

(THE MUTUAL FUND IS BETTER INVESTMENT PLAN)

 TABLE OF CONTENTSS.NO. PARTICULERSPAGE Page no.
NUMBER
 Objective & Scope of the Study 1-2

 Review of Literature

 Research Methodology

 Introduction of the company – SBI MUTUAL FUND

 Mutual funds: Basics, History, Types & pros and cons

 Equity funds explained

 Fund houses:

 ICICI prudential

 Reliance

 SBI

 Comparison of Various schemes under equity

 Introduction of the company Wealthier India

 Conclusion

 Latest Amendments in Mutual Funds

 References 65
CHAPTER 1

OBJECTIVE OF STUDY
1.1 Introduction
Investment is done with the motive of earning a regular return, risk-free. In our
country, a number of investment measures can be seen ranging from insurance
policies to shares or debentures. The type of investment chosen depends upon the
income level and the risk-taking ability of the investor. Mutual Funds are an emerging
mode of investment with great potential as it’s got diverging investing modes with
regular return and minimized risk. But the awareness level it has with respect to the
citizens of our country is really low. The vague knowledge on the same has forced
many to stay away or even optout from such mode of investment. This study has been
adopted with the aim to study the awareness level mutual funds have among the
investing population in India and to suggest better remedies to familiarize them among
the population

1.2 Objective of The Study

Primary Objective:

Comparison of similar schemes of different fund houses, their evaluation and which
scheme is best to invest and from where the money should be taken out. Study of
various fund houses, their management and the future outlook.

1
 Secondary Objective:

 Study of the basic mutual fund Industry fundamental analysis

 To find out the Preferences of the investors for Asset Management company
 To know the Preferences for the portfolios
 To find out the most preferred channel
 To find out what should do to boost Mutual Fund Industry
 To examine the penetration of mutual funds among Indian investors.

 To Examine the Various Mutual fund Investment available to investor in India

 Finally, to assess the perception of investors towards mutual funds schemes.

1.3 Scope of the Study

A big boom has been Invested in mutual fund Industry in recent time A Larger
number of new players have enter in the new market share in this rapidly Improving
market. The research was Carried on Mumbai. I Surveyed on my project Topic
“MUTUAL FUNDS Comparison of various schemes inequity

(THE MUTUAL FUND IS BETTERINVESTMENT PLAN)

 through survey.

The study will help to know the preferences of the customers, which company,
portfolio, mode of investment, option for getting return and so on they prefer. This
project report may help the company to make further planning and strategy

2
CHAPTER 2

REVIEW OF LITERATURE

Tyson E

(2007) in his book “Mutual Funds for DUMMIES” (5th edition) has provided
practical and profitable techniques of mutual fund investing that investor can put to
work now and for many years to come.

Dr. Yogesh Kumar Mehta (Feb 2012), has studied Emerging Scenario of Mutual
Funds in India: An Analytical Study of Tax Funds. The present study is based on
selected equity funds of public sector and private sector mutual fund. Corporate and
Institutions who form only 1.16% of the total number of investors accounts in the MFs
industry, contribute a sizeable amount of Rs. 2,87,108.01 crore which is 56.55% of the
total net assets in the MF industry. It is also found that MFs did not prefer debt
segment.

3
CHAPTER 3 RESEARCH METHODOLOGY

3.1 Research Methodology

An exploratory research methodology is used to collect the consumer preferences

while making investments. The outcome of the project can help various financial
service organization to plan accordingly their target investors and also the AMC to
device a structured scheme for customers while investing in Mutual Funds. This report
is based on primary as well secondary data, however primary data collection was given
more importance since it is overhearing factor in attitude studies. One of the most
important users of research methodology is that it helps in identifying the problem,
collecting, analysing the required information data and providing an alternative
solution to the problem. It also helps in collecting the vital information that is required
by the top management to assist them for the better decision making both day to day
decision and critical ones.

3.2 Data sources:

Research is totally based on primary data. Secondary data can be used only for the
reference. Research has been done by primary data collection, and primary data has
been collected by interacting with various people. The secondary data has been
collected through various journals and websites. Duration of Study: The study was
carried out for a period of two months, from 15th Feb to 30th March 2021.

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3.3 Research Design: -

The present research study has adopted Descriptive Research Design for properly
designing Research work. Through this, the topic will be studied thoroughly and it will
be presented by giving necessary findings & conclusions.

3.4 Sampling procedure:

The sample was selected of the random basis from different age group. The data has
been collected through filling up the questionnaire (Google Form) prepared. The data
has been analysed by using mathematical/Statistical tool.

3.5 Sampling Method

The method adopted is Convenient Sampling Method because it was necessary to

cover all types of investors and at different places all over city, even if by taking the
help of cell phones too.

3.6 Sample size:

The sample size of my project is limited to 200 people only. Out of which only 190
people had invested in Mutual Fund. Other 80 people did not have invested in Mutual
Fund.

3.7 Sample design:

Data has been presented with the help of bar graph, pie charts, line graphs etc. 3.8
Limitation: -

 Possibility of error in data collection because many of investors may have not
known much about answers of my questionnaire.

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  Sample size is limited to 200 persons only from Mumbai out of these only 190
had invested in Mutual Fund.
 The sample size may not adequately represent the whole market

CHAPTER 4

4.3 Products and Services

Equity

The company offers a wide array of equity funds ranging from diversified to thematic
and sector-based

offerings.

Debt

The company has a robust product range matching all maturities for cash
management. The focus of investment philosophy is primarily on the product's
liquidity as well as on the quality of the securities held in the portfolio.

Hybrid

Hybrid Schemes invest in a mixture of multiple asset classes like debt, equity, and gold
in different proportions based on the investment objective. The company has a suite of
products across the risk spectrum including a multi-asset offering that has gold in the
portfolio into the traditional mix of equity and debt.

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Other Large Mutual Fund Houses

Some of the major competitors for SBI Mutual Fund in the mutual fund sector are
Birla Sun Life Mutual Fund, Kotak Mutual Fund, HDFC Mutual Fund, ICICI
Prudential Mutual Fund, Reliance Mutual Fund, UTI Mutual Fund & Axis Mutual
Fund.

CHAPTER 5

MUTUAL FUND

5.1 Introduction

Various investment opportunities available to the investors for investing and make
savings. The multiple options are as follows:

1. Stocks:

Stocks represent shares of ownership in a public company. Examples of public

companies include Reliance, ONGC and Infosys. Stocks are considered to be the most
common owned investment traded on the market.

2.Bonds:

Bonds are basically the money which you lend to the government or a company, and
in return you can receive interest on your invested amount, which is back over
predetermined amounts of time. Bonds are considered to be the most common lending
investment traded on the market. There are many other types of investments other
7
than stocks and bonds (including annuities, real estate, and precious metals), but the
majority of mutual funds invest in stocks and/or bonds.

What Is Mutual Fund?

A mutual fund is just the connecting bridge or a financial intermediary that allows a
group of investors to pool their money together with a predetermined investment
objective. The mutual fund will have a fund manager who is responsible for investing
the gathered money into specific securities (stocks or bonds). When you invest in a
mutual fund, you are buying units or portions of the mutual fund and thus on
investing becomes a shareholder or unit holder of the fund. Mutual funds are
considered as one of the best available investments as compare to others, they are very
cost efficient and also easy to invest in, thus by pooling money together in a mutual
fund, investors can purchase stocks or bonds with much lower trading costs than if
they tried to do it on their own. But the biggest advantage to mutual funds is
diversification, by minimizing risk & maximizing returns. 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.

Unit Trust of India is the first Mutual Fund set up under a separate act, UTI Act in
1963, and started its operations in 1964 with the issue of units under the scheme US-64.

5.2 Overview of existing schemes existed in mutual fund category

Wide variety of Mutual Fund Schemes exists 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.

5.3 Type of Mutual Fund Schemes:

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5.3.1 BY STRUCTURE

A. Open Ended Schemes An open-end fund is one that is available for subscription all
through the year. These do not have a fixed maturity. Investors can conveniently buy
and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end
schemes is liquidity.

B. Close Ended Schemes

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

9
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.

C. Interval Scheme

Interval Schemes are that scheme, which combines the features of open-ended and
close-ended schemes. The units may be traded on the stock exchange or may be open
for sale or redemption during pre-determined intervals at NAV related prices.

5.3.2 BY NATURE

A. Equity fund: These funds invest a maximum part of their corpus into equities
holdings. The structure of the fund may vary different for different schemes and the
fund manager’s outlook on different stocks. The Equity Funds are sub-classified
depending upon their investment objective, as follows:

 Diversified Equity Funds

 Mid-Cap Funds
 Sector Specific Funds
 Tax Savings Funds (ELSS)
Equity investments are meant for a longer time horizon; thus, Equity funds rank
high on the risk- return matrix.
B. Debt funds:
The objective of these Funds is to invest in debt papers. Government
authorities, private companies, banks and financial institutions are some of the
major issuers of debt papers. By investing in debt instruments, these funds
ensure low risk and provide stable income to the investors. Debt funds are
further classified as:
 Gilt Funds:

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 Invest their corpus in securities issued by Government, popularly known as
Government of India debt papers. These Funds carry zero Default risk but are
associated with Interest Rate risk. These schemes are safer as they invest in
papers backed by Government.
 Income Funds:
Invest a major portion into various debt instruments such as bonds, corporate
debentures and Government securities

MIPs:

Invests maximum of their total corpus in debt instruments while they take minimum
exposure in equities. It gets benefit of both equity and debt market. These scheme
ranks slightly high on the risk-return matrix when compared with other debt schemes.

Short Term Plans (STPs):

Meant for investment horizon for three to six months. These funds primarily invest in
short term papers like Certificate of Deposits (CDs) and Commercial Papers (CPs).
Some portion of the corpus is also invested in corporate debentures.

Liquid Funds:

Also known as Money Market Schemes, these funds provide easy liquidity and
preservation of capital. These schemes invest in short-term instruments like Treasury
Bills, inter-bank call money market, CPs and CDs. These funds are meant for short-
term cash management of corporate houses and are meant for an investment horizon
of 1day to 3 months. These schemes rank low on risk-return matrix and are considered
to be the safest amongst all categories of mutual funds.

C. Balanced funds:

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As the name suggest they, are a mix of both equity and debt funds. They invest in both
equities and fixed income securities, which are in line with pre-defined investment
objective of the scheme. These schemes aim to provide investors with the best of both
the worlds. Equity part provide growth and the debt part provides stability in returns.
Further the mutual funds can be broadly classified on the basis of investment
parameter viz, each category of funds is backed by an investment philosophy, which is
pre-defined in the objectives of the fund. The investor can align his own investment
needs with the funds objective and invest accordingly.

5.3.3 BY INVESTMENT OBJECTIVE

Growth Schemes:

Growth Schemes are also known as equity schemes. The aim of these schemes is to
provide capital appreciation over medium to long term. These schemes normally invest
a major part of their fund in equities and are willing to bear short-term decline in
value for possible future appreciation.

 Income Schemes:

Income Schemes are also known as debt schemes. The aim of these schemes is to
provide regular and steady income to investors. These schemes generally invest in

12
fixed income securities such as bonds and corporate debentures. Capital appreciation
in such schemes may be limited.

 Balanced Schemes:

Balanced Schemes aim to provide both growth and income by periodically

distributing a part of the income and capital gains they earn. These schemes invest in
both shares and fixed income securities, in the proportion indicated in their offer
documents (normally 50:50).

 Money Market Schemes:

Money Market Schemes aim to provide easy liquidity, preservation of capital and
moderate income. These schemes generally invest in safer, short-term instruments,
such as treasury bills, certificates of deposit, commercial paper and inter-bank call
money.

5.3.4 OTHER SCHEMES

 Tax Saving Schemes:

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Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from
time to time. Under Sec.88 of the Income Tax Act, contributions made to any Equity
Linked Savings Scheme (ELSS) are eligible for rebate.

 Index Schemes:

Index schemes attempt to replicate the performance of a particular index such as the
BSE Sensex or the NSE 50. The portfolio of these schemes will consist of only those
stocks that constitute the index. The percentage of each stock to the total holding will
be identical to the stocks index weightage. And hence, the returns from such schemes
would be more or less equivalent to those of the Index.

 Sector Specific Schemes:

These are the funds/schemes which invest in the securities of only those sectors or
industries as specified in the offer documents. e.g., Pharmaceuticals, Software, Fast
Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds
are dependent on the performance of the respective sectors/industries. While these
funds may give higher returns, they are riskier compared to diversified funds.
Investors need to keep a watch on the performance of those sectors/industries and
must exit at an appropriate time

5.4 Types of returns There are three ways, where the total returns provided by mutual
funds can be enjoyed by investors:

 Income is earned from dividends on stocks and interest on bonds. A fund pays
out nearly all income it receives over the year to fund owners in the form of a
distribution.

14
 If the fund sells securities that have increased in price, the fund has a capital
gain. Most funds also pass on these gains to investors in a distribution.

 If fund holdings increase in price but are not sold by the fund manager, the
fund's shares increase in price. You can then sell your mutual fund shares for a
profit. Funds will also usually give you a choice either to receive a check for
distributions or to reinvest the earnings and get more shares.

5.5 Pros & cons of investing in mutual funds:

For investments in mutual fund, one must keep in mind about the Pros and cons
of investments in mutual fund.
Advantages of Investing Mutual Funds:

1. Professional Management –

The basic advantage of funds is that, they are professional managed, by well
qualified professional. Investors purchase funds because they do not have the
time or the expertise to manage their own portfolio. A mutual fund is considered
to be relatively less expensive way to make and monitor their investments.

2. Diversification –

Purchasing units in a mutual fund instead of buying individual stocks or bonds,

the investors risk is spread out and minimized up to certain extent. The idea

15
behind diversification is to invest in a large number of assets so that a loss in any
particular investment is minimized by gains in others
3. Economies of Scale –

Mutual fund buy and sell large amounts of securities at a time, thus help to
reducing transaction costs, and help to bring down the average cost of the unit
for their investors.

4. Liquidity –

Just like an individual stock, mutual fund also allows investors to liquidate their
holdings as and when they want.

5. Simplicity –

Investments in mutual fund is considered to be easy, compare to other available

instruments in the market, and the minimum investment is small. Most AMC
also have automatic purchase plans whereby as little as Rs. 2000, where SIP
start with just Rs.50 per month basis

Disadvantages of Investing Mutual Funds:

1. Professional Management-
Some funds don’t perform in neither the market, as their management is not
dynamic enough to explore the available opportunity in the market, thus many
investors debate over whether or not the so-called professionals are any better
than mutual fund or investor himself, for picking up stocks.

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2. Costs –
The biggest source of AMC income, is generally from the entry & exit load
which they charge from an investor, at the time of purchase. The mutual fund
industries are thus charging extra cost under layers of jargon. 3. Dilution –
Because funds have small holdings across different companies, high returns
from a few investments often don't make much difference on the overall return.
Dilution is also the result of a successful fund getting too big. When money pours
into funds that have had strong success, the manager often has trouble finding a
good investment for all the new money
. 4. Taxes –
when making decisions about your money, fund managers don't consider your
personal tax situation. For example, when a fund manager sells a security, a
capital-gain tax is triggered, which affects how profitable the individual is from
the sale. It might have been more advantageous for the individual to defer the
capital gains liability.

5.6 Mutual Funds Industry in India

The origin of mutual fund industry in India is with the introduction of the
concept of mutual fund by UTI in the year 1963. Though the growth was slow,
but it accelerated from the year 1987 when non- UTI players entered the
industry. In the past decade, Indian mutual fund industry had seen a dramatic
improvement, both quality wise as well as quantity wise. Before, the monopoly of
the market had seen an ending phase, the Assets Under Management (AUM)
was Rs. 67bn. The private sector entry to the fund family rose the AUM to Rs.
470 in in March 1993 and till April 2004, it reached the height of 1,540 bn.
Putting the AUM of the Indian Mutual Funds Industry into comparison, the
total of it is less than the deposits of SBI alone, constitute less than 11% of the

17
 total deposits held by the Indian banking industry. The main reason of its poor
growth is that the mutual fund industry in India is new in the country. Large
sections of Indian investors are yet to be indelicate with the concept. Hence, it is
the prime responsibility of all mutual fund companies, to market the product
correctly abreast of selling. The mutual fund industry can be broadly put into
four phases according to the development of the sector. Each phase is briefly
described as under.

The major players in the Indian Mutual Fund Industry are:

AUM 5 Year 7 Year

Fund Name Category
(Crores) Returns Returns

Mirae Asset Large Cap

Equity: Large Cap Rs.13,209 6.61% 13.78%
Fund

DSP Tax Saver Fund Equity: ELSS Rs.4,667 6.11% 13.01%

Axis Bluechip Fund Equity: Large Cap Rs.10,998 8.60% 12.75%

Axis Focused 25 Fund Equity: Multi Cap Rs.8,185 9.03% 12.66%

Hybrid: Aggressive
DSP Equity & Bond Fund Rs.5,118 6.69% 11.63%
Hybrid

ICICI Prudential Bluechip

Equity: Large Cap Rs.18,892 4.38% 10.40%
Fund

ICICI Prudential Long Debt: Long

Rs.839 10.08% 9.63%
Term Bond Fund Duration

HDFC Short Term Debt Debt: Short

Rs.11,204 8.27% 8.61%
Fund Duration

Nippon India Low

Debt: Low Duration Rs.3,268 7.84% 8.33%
Duration Fund

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Axis Small Cap Fund Equity: Small Cap Rs.1,879 7.73% –

5.7 HOW TO CALCULATE NAV

A mutual fund is a professionally-managed firm of collective investments that pools

money from many investors and invests it in stocks, bonds, short-term money market
instruments, and/or other securities.in other words we can say that A Mutual Fund is a
trust registered with the Securities and Exchange Board of India (SEBI), which pools
up the money from individual / corporate investors and invests the same on behalf of
the investors /unit holders, in equity shares, Government securities, Bonds, Call money
markets etc., and distributes the profits. The value of each unit of the mutual fund,
known as the net asset value (NAV), is mostly calculated daily based on the total value
of the fund divided by the number of shares currently issued and outstanding. The
value of all the securities in the portfolio in calculated daily. From this, all expenses are
deducted and the resultant value divided by the number of units in the fund is the
fund’s NAV.

NET ASSET VALUE = Value of Asset- Value of Liabilities

Total share of Outstanding

CHAPTER 6

19
FUND HOUSES

6.1 Various Fund Houses in India

A fund house is a company/firm that owns and operates a mutual fund. They own the
fund and decide on the investment strategies to be followed with the money that was
collected from the investor public for the fund.

Various fund houses taken as samples for the comparison of schemes are:

1. ICICI PRUDENTIAL ASSEST MANAGEMENT COMPANY

2. RELIENCE MUTUAL FUND

3. SBI MUTUAL FUND

The sample of ten comparisons of schemes falling under equity category has been
selected for analysis, these comparisons are:

1. ICICI PRUDENTIAL ASSET MANAGEMENT COMPANY

ICICI Prudential Asset Management Company Ltd. (IPAMC/ the Company) is the
joint venture between ICICI Bank, a well-known and trusted name in financial
services in India and Prudential Plc, one of UK’s largest players in the financial
services sectors. IPAMC was incorporated in the year 1993. The Company in a span of
over 18 years since inception and just over 13 years of the Joint Venture, has forged a
position of pre-eminence in the Indian Mutual Fund industry as the third largest asset
management company in the country, contributing significantly to the growth of the
Indian mutual fund industry. The Company manages significant Mutual Fund Asset
20
Under Management (AUM), in addition to Portfolio Management Services and
International Advisory Mandates for clients across international markets in asset
classes like Debt, Equity and Real Estate with primary focus on risk adjusted returns.
IPAMC has witnessed substantial growth in scale. From merely 2 locations and 6
employees during inception to the current strength of over 700 employees with reach
across around 150 locations, the growth momentum of the Company has been
exponential. The organization today is an ideal mix of investment expertise, resource
bandwidth & process orientation. IPAMC’s Endeavour is to bridge the gap between
savings & investments to help create long term wealth and value for investors through
innovation, consistency and sustained risk adjusted performance.

ICICI Bank: -

ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$
91 billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million)
for the year ended March 31, 2011. The Bank has a network of 2,538 branches and
about 6,810 ATMs in India, and has a presence in 19 countries, including India. ICICI
Bank offers a wide range of banking products and financial services to corporate and
retail customers through a variety of delivery channels and through its specialised
subsidiaries in the areas of investment banking, life and non-life insurance, venture
capital and asset management. The Bank currently has subsidiaries in the United
Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong
Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative
offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia
and Indonesia. Our UK subsidiary has established branches in Belgium and Germany.
21
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE)

Prudential Plc (formerly known as Prudential Corporation plc)

Prudential plc is an international financial services group with significant operations

in Asia, the US and the UK. They serve approximately, 25 million customers and have
£290 billion in assets under management. They are among the leading capitalized
insurers in the world with an Insurance Groups Directive (IGD) capital surplus
estimated at £3.4 billion (as at 31 December 2009). The Group is structured around
four main business units:

Prudential Corporation Asia (PCA)

PCA is a leading life insurer in Asia with presence in 19 markets and a top three
position in seven key locations: Hong Kong, India, Indonesia, Malaysia, Philippines,
Singapore, and Vietnam. PCA provides a comprehensive range of savings, protection
and investment products that are specifically designed to meet the needs of customers
in each of its local markets. PCA’s asset management business in Asia has retail
operations in 10 markets and it independently manages assets on behalf of a wide
range of retail and institutional investors across the region.
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Jackson National Life Insurance Company

Jackson is one of the largest life insurance companies in the US, providing retirement
savings and income solutions to more than 2.8 million customers. It is also one of the
top five providers of variable and fixed index annuities in the US. Founded nearly 50
years ago, Jackson has a long and successful record of providing effective retirement
solutions for their clients.

Prudential UK & Europe (PUE)

PUE is a leading life and pension’s provider to approximately 7 million customers in

the UK. It has a number of major competitive advantages including significant
longevity experience, multi asset investment capabilities, a strong investment track
record, a highly respected brand and financial strength. PUE continues to focus on its
core strengths including its annuities, pensions and investment products where it can
maximize the advantage it has in offering with-profits and other multi-asset
investment funds.

M&G

M&G is Prudential’s UK and European fund management business with total assets
under management of £174 billion (as at December 31, 2009).M&G has been investing
money for individual and institutional clients for nearly 80 years. Today it is among
the largest investors in the UK stock market, as well as being a powerhouse in fixed-
income investments. Prudential plc of the United Kingdom is not affiliated in any
manner with Prudential Financial, Inc., a company whose principal place of business
is in the United States of America.

MANAGEMENT Mr. Nimesh Shah- Managing Director & Chief Executive Officer:

Nimesh Shah joined ICICI Prudential AMC as its Managing Director in July
2007.Nimesh has completed his Chartered Accountancy. Prior to joining ICICI
23
Prudential AMC, Nimesh was Senior General Manager at ICICI Bank and has over 18
years’ experience in banking and financial services. At ICICI Group, he has handled
many responsibilities including project finance, corporate banking and international
banking. He was associated with one of the first batches of senior managers selected to
lead the foray of ICICI Bank into the international arena. He led ICICI Bank’s foray
into the Middle Eastern region and Africa. Mr. B Ramakrishna - Executive Vice
President:

Ramakrishna joined ICICI Prudential AMC in September 2004.Ramakrishna is a

Chartered Accountant and has also done his Cost Accountancy. He has around 23
years of rich experience across industries like FMCG and banking & financial
services. At ICICI Prudential AMC, Ramakrishna is the custodian of the finance,
compliance and technology functions. He plays an integral role in driving the key
profitability agenda through financial & corporate planning, budgetary control and
corporate finance.

Mr. Raghav Iyengar - Head - Retail & Institutional Business:

Raghav joined ICICI Prudential AMC in December 2006. Raghav is a Chartered

Accountant and also has a degree in Cost Accountancy. He has an overall work
experience of around 16 years across the Banking & Financial Service Industry. He
was also associated with ICICI Prudential AMC from 1998 to 2000.At ICICI
Prudential AMC, Raghav is responsible for driving the business objectives through
Retail sales and distribution, channel sales and institutional / corporate investors. His
role is of a key driver in strengthening distribution relationships and facilitating asset
growth. He is also responsible for identifying potential areas of expansion and
facilitating business growth. Raghav loves traveling and visiting new places. He loves
reading books and enjoys playing tennis with his son.

24
Mr. Kalyan Prasath - Head - Information Technology: Kalyan joined ICICI
Prudential AMC in June 2001. Kalyan holds a Diploma in Business Management from
ICFAI and Post Graduate Diploma in Systems Management from NIIT. He has 23
years of experience across industries like IT, manufacturing and banking & financial
services. At ICICI Prudential AMC, his responsibilities include overseeing the overall
technology function i.e., business application, information security and IT
infrastructure & projects thereby contributing to business excellence.

FUND MANAGEMENT

Mr. S. Naren - Chief Investment Officer – Equity: Naren joined ICICI Prudential
AMC in October 2004. At ICICI Prudential AMC, Naren oversees the equity
investments across the Mutual Fund, Portfolio Management Services (PMS) and
International Advisory Business. He is instrumental in overall equity investment
strategy development. Naren has an overall outstanding and rich experience of over 20
years in almost all spectrum of the financial services industry ranging from investment
banking, Fund Management, Equity Research, and stock broking operations. His core
competency lies in being involved in the entire gamut of equity market space with
extensive knowledge of Indian equities and the economy. After obtaining a B. Tech
degree from IIT Chennai, Naren finished MBA in finance from IIM Kolkata and
worked with various financial services companies like Refco Sify Securities India Pvt.
Ltd., HDFC Securities Ltd. and Yoha Securities in various positions prior to joining
ICICI Prudential AMC.

Mr. Chaitanya Pande - Head – Fixed Income:

Chaitanya joined ICICI Prudential AMC in September 2002. Chaitanya currently

manages thirteen funds viz. ICICI Prudential Flexible Income Plan, ICICI Prudential
Equity & Derivatives Fund, ICICI Prudential Blended Plan A, ICICI Prudential
Blended Plan B, ICICI Prudential Fixed Maturity Plans, ICICI Prudential Interval
25
Fund, ICICI Prudential Liquid Plan, ICICI Prudential Floating Rate Plan, ICICI
Prudential Long Term Floating Rate Plan, ICICI Prudential Short Term Plan, ICICI
Prudential Sweep Plan, ICICI Prudential Real Estate Securities Fund and ICICI
Prudential S.M.A.R.T. (Structure Methodology Aiming at Returns over Tenure) Fund.
Chaitanya has an overall work experience of around over 14 years. His core
competency lies in credit analysis and efficient portfolio management. His efficiency in
fund management also won him the title of India’s Most Astute Bond Investor by Asset
Magazine for the year 2007. Chaitanya holds an MBA from IMI Delhi. Prior to joining
ICICI Prudential AMC he was with Jardine Fleming AMC Pvt Ltd.

Scheme-wise commentary*

ICICI Prudential Focused Blue-chip Equity Fund

ICICI Prudential Focused Blue-chip Equity Fund is an open-ended equity scheme

that seeks to generate long-term capital appreciation to unitholders from a portfolio
that is invested predominantly in equity and equity-related 5 securities of about 25-30
large-cap companies and the balance in debt securities, money market instruments,
and cash. The scheme posted a return of -3.66% in FY19, better than the -9.23%
posted by the benchmark S&P CNX Nifty Index. The AAUM of the scheme during the
last quarter of FY19 was Rs. 3,805.27 crore. ICICI Prudential Tax Plan ICICI
Prudential Tax Plan is an open-ended Equity Linked Savings Scheme (ELSS). The
scheme posted a return of -3.61% in FY19, better than the -8.75% posted by the
benchmark S&P CNX 500. The AAUM of the scheme during the last quarter of FY19
was Rs. 1,278.42 crore.

ICICI Prudential Infrastructure Fund

ICICI Prudential Infrastructure Fund is a thematic fund encompassing

infrastructure. It is an open-ended equity scheme that seeks to generate capital

26
appreciation and income distribution to unit holders by investing predominantly in
equity or equity-related securities of the companies belonging to the infrastructure
development and balance in debt securities and money market instruments. The
scheme posted a return of -15.39% in FY19, better than the -18.45% posted by the
benchmark CNX Infrastructure Index. The AAUM of the scheme during the last
quarter of FY19 was Rs. 2,153.67 crore.

ICICI Prudential Banking & Financial Services Fund

ICICI Prudential Banking & Financial Services Fund is an open-ended sectoral

scheme that seeks to generate long-term capital appreciation to unit holders from a
portfolio that is invested predominantly in equity and equity related securities of
companies engaged in banking and financial services. The scheme posted a return of -
10.54% in FY19, better than the -11.64% posted by the benchmark BSE Banker. The
AAUM of the scheme during the last quarter of FY19 was Rs. 140.76 crore.

ICICI Prudential Technology Fund

ICICI Prudential Technology Fund is an open-ended Technology sector-oriented fund.

The scheme posted a return of -2.52% in FY19, better than the -7.19% posted by the
benchmark BSE IT Index. The AAUM of the scheme during the last quarter of FY19
was Rs. 104.56 crore

ICICI Prudential FMCG Fund

ICICI Prudential FMCG Fund is an open-ended FMCG sector-oriented fund. The

scheme posted a return of 30.98% in FY19, better than the 24.35% posted by the
benchmark S&P CNX FMCG Index. The AAUM of the scheme during the last
quarter of FY19 was Rs. 130.06 crore.

27
2. RELIANCE MUTUAL FUND

Mutual Fund ('RMF'/ Mutual Fund') is one of India’s leading Mutual Funds, with
Average Assets Under Management (AAUM) of Rs. 80,694 Crores and an investor
count of over 63.17 and 69.37 Lakh folios. (AAUM and investor count as of Apr - June
19) Reliance Mutual Fund, a part of the Reliance Group, is one of the fastest growing
mutual funds in India. RMF offers investors a well-rounded portfolio of products to
meet varying investor requirements and has presence in 179 cities across the country.
Reliance Mutual Fund constantly endeavours to launch innovative products and
customer service initiatives to increase value to investors. Reliance Capital Asset
Management Limited (‘RCAM’) is the asset manager of Reliance Mutual Fund.
RCAM a subsidiary of Reliance Capital Limited, which holds 92.93% of the paid-up
capital of RCAM, the balance paid up capital being held by minority shareholders.
Reliance Capital Ltd. is one of India’s leading and fastest growing private sector
financial services companies, and ranks among the top 3 private sector financial
services and banking companies, in terms of net worth. Reliance Capital Ltd. has
interests in asset management, life and general insurance, private financial services.
equity and proprietary investments, stock broking and other

Sponsor: Reliance Capital Limited

Trustee: Reliance Capital Trustee Co. Limited

Investment Manager /: Reliance Capital Asset Management Limited AMC Statutory

Details: The Sponsor, the Trustee and the Investment Manager are incorporated
under the Companies Act 1956.

VISION AND MISSION STATEMENTS VISION STATEMENT

28
To be a globally respected wealth creator with an emphasis on customer care and a
culture of good corporate governance. MISSION STATEMENT To create and
nurture a world-class, high-performance environment aimed at delighting our
customers

CORPORATE GOVERNANCE

Corporate Governance Policy: Reliance Capital Asset Management Limited has a

vision of being a leading player in the mutual fund business and has achieved
significant success and visibility in the market. However, an imperative part of growth
and visibility is adherence to good conduct in the marketplace. At Reliance Capital
Asset Management Limited, the implementation and observance of ethical processes
and policies has helped us in standing up to the scrutiny of our domestic and
international investors.

Management:

The management at Reliance Capital Asset Management Limited is committed to good

corporate governance, which includes transparency and timely dissemination of
information to its investors and unit holders. The Board of Directors of RCAM is a
professional body constituting inter-alia of, well-experienced and knowledgeable
independent members. Regular audit committee meetings are conducted to review the
operations and performance of the company.

Employees:

Reliance Capital Asset Management Limited has at present, a code of conduct for all
its officers. It has a clearly defined prohibition on insider trading policy and
regulations. The management believes in the principles of propriety and utmost care is
taken while handling public money, making proper and adequate disclosures. All
personnel at RCAM are made aware of their rights, obligations and duties as part of

29
the Dealing Policy laid down in terms of SEBI guidelines. They are taken through a
well-designed HR program, conducted to impart work ethics, the Code of Conduct,
information security, Internet and e-mail usage and a host of other issues. One of the
core objectives of RCAM is to identify issues considered sensitive by global corporate
standards, and implement policies/guidelines in conformity with the best practices as
an ongoing process. RCAM gives top priority to compliance in true letter and spirit,
fully understanding its fiduciary responsibilities.

MANAGEMENT TEAM

Sundeep Sikka: is CEO of RCAM. He has been instrumental in expanding RCAM's

footprints in both domestic & international territories. Sundeep has been with RCAM
since November 2003 and has more than 13 years of leadership experience with
NBFCs and Banks. Sundeep brings a proven track record of success and a broad
understanding of the company's business. Prior to RCAM, Sundeep has held a number
of other senior management positions and his last stint was with ICICI Bank.

Himanshu Vyapak:

Is Deputy CEO with Reliance Capital Asset Management (RCAM) from Oct 2003
onwards and brings in over 14 years of rich experience in sales & distribution of
financial services. He has been instrumental in expanding RCAM’s footprints in both
domestic & international territories. Apart from Reliance Mutual Fund, He was also
involved with key businesses across Reliance Capital group like Credit Cards &
Unsecured Loans. Prior to Reliance Capital he was with ICICI bank and Escorts
Finance across liability and asset verticals. Himanshu is a Fellow of Insurance from
Indian Institute of Insurance, a Certified Financial Planner, a gold medallist in MBA
and a Graduate in Economics (Hons) from Delhi University. Under his leadership,
RCAM has earned accolades from Customers, Partners and Independent professional

30
research entities representing domestic and international geographies. Some of the
recent recognition include:

 Best Sales Team - Stevie Award 2008

 National Sales Team of the year - Stevie Award 2009

 Best National Sales Head of the Year - Wealth Forum Award 2010

 Best Distributor Training Team from Wealth Forum Platinum Circle 2010

 Top 3 in Customer Service from Wealth Forum Platinum Circle 2010 Presently, he
is Chairman of National Institute of Technology, Calicut and Chairman of Energy
Institute, India and hold directorships in several limited companies.

Amitabh Mohanty:

Head Fixed Income has been with Reliance Capital Asset Management Ltd., in his
current assignment, for over Six years. He is a Fixed Income Portfolio Manager with
over 16 years of experience. Prior to his current assignment, he had a six-year stint
with Alliance Capital Asset Management Ltd. as Vice President, in charge of fixed
income assets. He started his career in SBI Funds Management Ltd. where he was
Deputy Manager responsible for managing fixed income schemes. He is a management
graduate from Indian Institute of Management, Ahmedabad from the 1996 batch and
holds an electrical engineering degree from the IIT, Roorkee.

BOARD OF DIRECTORS

Kanu Doshi: Mr. Kanu H Doshi, 72 years, a B. Com, B A, FCA (Chartered

Accountant), is a fellow member of Institute of Chartered Accountants of India. He is
also the Dean – Finance, at Welingkar Institute of Management, Mumbai, where he

31
teaches Corporate Tax Planning and Financial Management for Master’s Degree of
Mumbai University in Management. He regularly contributes articles to leading
journals and periodicals, including leading websites like moneycontrol.com. He is co-
author of “Tax Holidays”, “Financial Accounting”, and “Treatise on Special Economic
Zones”. Mr. Doshi is a Director on the Boards of leading companies like Reliance
Capital Asset Management Limited, Motilal Oswal AMC Ltd, Edelweiss Capital Asset
Management Limited.

S.C. Tripathi:

Mr. S C Tripathi 63 years, is a M.Sc. (Physics – Spl. Electronics), LL B, Postgraduate

Diploma in Development Studies (Cantab), AIMA Diploma in Management. He has
varied experience at State, Central Govt. & International level in Public Finances,
Industrial & Communal Finance & Banking. Few of the vital positions held by him,
includes:

 Managing Director, Industrial & Investment Corporation of U.P. (PICUP)

 Minister (Economy & Commerce), Embassy of India, Tokyo

 Secretary, Heavy Industries, & Department of Taxation & Institutional Finance,

3. SBI MUTUAL FUND

32
CORPORATE PROFILE With 25 years of rich experience in fund management, we at
SBI Funds Management Pvt. Ltd. bring forward our expertise by consistently
delivering value to our investors. We have a strong and proud lineage that traces back
to the State Bank of India (SBI) - India's largest bank. We are a Joint Venture
between SBI and AMUNDI (France), one of the world's leading fund management
companies. With our network of over 222 points of acceptance across India, we deliver
value and nurture the trust of our vast and varied family of investors. Excellence has
no substitute. And to ensure excellence right from the first stage of product
development to the post-investment stage, we are ably guided by our philosophy of
‘growth through innovation’ and our stable investment policies. This dedication is
what helps our customers achieve their financial objectives. Vision “To be the most
preferred and the largest fund house for all asset classes, with a consistent track
record of excellent returns and best standards in customer service, product innovation,
technology and HR practices.” Services Mutual Funds Investors are our priority. Our
mission has been to establish Mutual Funds as a viable investment option to the masses
in the country. Working towards it, we developed innovative, need-specific products
and educated the investors about the added benefits of investing in capital markets via
Mutual Funds. Today, we have been actively managing our investor's assets not only
Today, we have been actively managing our investor's assets not only through our
investment expertise in domestic mutual funds, but also offshore funds and portfolio
management advisory services for institutional investors. This makes us one of the
largest investment management firms in India, managing investment mandates of over
5.4 million investors.

Portfolio Management and Advisory Services

SBI Funds Management has emerged as one of the largest players in India advising
various financial institutions, pension funds, and local and international asset

33
management companies. We have excelled by understanding our investor's
requirements and terms of risk / return expectations, based on which we suggest
customized asset portfolio recommendations. We also provide an integrated end-to-
end customized asset management solution for institutions in terms of advisory service,
discretionary and non-discretionary portfolio management services.

Offshore Funds

SBI Funds Management has been successfully managing and advising India's
dedicated offshore funds since 1988. SBI Funds Management was the 1st bank
sponsored asset management company fund to launch an offshore fund called SBI
Resurgent India Opportunities Fund' with an objective to provide our investors with
opportunities for long-term growth in capital, through well-researched investments in
a diversified basket of stocks of Indian Companies.

BOARD OF DIRECTORS-

AMC Mr. Pratip Chaudhuri, (Chairman & Associate Director): Qualifications: B.Sc.
(Hons), MBA. Mr. Pratip Chaudhuri joined State Bank of India as Probationary
Officer in 1974. He took over charge as Chairman of State Bank of India on 7th April,
2011. Immediately prior to taking over as Chairman, Mr. Chaudhuri was Dy.
Managing Director & Group Executive (International Banking), Mumbai. During his
illustrious career spanning 36 years in State Bank of India, he held several important
positions like Chief General Manager (Foreign Offices) at Corporate Centre, Mumbai,
Managing Director, State Bank of Saurashtra, Chief General Manager, Chennai
Circle etc.

Shri Jayesh Gandhi (Independent Director):

34
Qualifications: B. Com, F.C.A. Shri Jayesh Gandhi is a Chartered Accountant and
Senior Partner from N.M. Raiji & Co. Chartered Accountants, Mumbai. Since last 18
years Shri Gandhi has audit assignments of various companies like ICICI Group
including ICICI Bank Ltd., Wipro Group, Tata Finance Ltd., Tata Tea Ltd., Tata
Chemicals Ltd. and Prism Cement Ltd. He also handles various other assignments in
the audit of mutual funds. He is also a director on the Board of various companies.

Mr. Deepak Kumar Chatterjee (Managing Director):

Qualifications: M.Sc., MBA. Mr. Deepak Kumar Chatterjee brings with him
experience of over 32 years in State Bank of India in various areas such as Credit
Administration, Investment Banking, International Banking Operations and Branch
Management. In his previous assignment, Mr. Chatterjee was General Manger
(Financial Institutions Group), International Business Group in SBI where he was
handling fund raising for SBI outside India, Country Risk and Bank exposures.

MANAGEMENT TEAM Mr. Deepak Kumar Chatterjee:

profile discussed earlier in report Mr. Philippe Batchevitch: profile discussed earlier
in report

Mr. K. T. Ravindran: Chief Operating Officer, Mr. Ravindran, General Manager,

State Bank of India (SBI), has over 30 years of experience in various areas at SBI such
as Credit Administration, Monitoring Asset Quality, International Banking
Operations, Retail Banking, Branch Management, Internal Audit functions, Circle
Balance Sheet and Compliance. Prior to assuming the charge of Chief Operating
Officer at SBI Funds Management Pvt. Ltd, Mr. Ravindran was Deputy General
Manager (Credit) of SBI Chennai Circle. Mr. Navneet Munot: Chief Investment
Officer, Navneet joined SBI Funds Management Private Limited as Chief Investment
Officer in December 2008. He brings with him over 15 years of rich experience in

35
Financial Markets. In his previous assignment, he was the Executive Director & head -
multi - strategy boutique with Morgan Stanley Investment Management. Prior to
joining Morgan Stanley Investment Management, he worked as the Chief Investment
Officer - Fixed Income and Hybrid Funds at Birla Sun Life Asset Management
Company Ltd. Several funds managed by Navneet got recognition for their consistent
superior risk-adjusted performance and won several awards from independent
agencies such as CRISIL-CNBC TV 18, ICRA, Reuters Lipper and got top ranking in
Value Research. Navneet had been associated with the financial services business of
the group for over 13 years and worked in various areas such as fixed income, equities
and foreign exchange. His articles on matters related to financial markets have widely
been published. Navneet is a postgraduate in accountancy and business statistics and a
qualified Chartered Accountant. He is also a charter holder of the CFA Institute USA
and CAIA Institute USA. He is also an FRM charter holder of Global Association of
Risk professionals (GARP).

Ms. Vinaya Datar:

Company Secretary & Compliance Officer, Ms. Vinaya Datar has overall experience
of more than 15 years, including over 8 years in the field of financial services. She has
extensively worked in the areas of Compliance, Secretarial, and Legal. Prior to this
assignment, she was Assistant Vice President - Compliance with Mirae Asset Global
Investments (India) Pvt. Ltd. Ms. Data has also been previously associated with
Reliance Capital Asset Management Ltd, IL&FS Limited and UTI Infrastructure &
Services Limited. Mr. C. A. Santosh, Head - Customer Service: Mr. C. A. Santosh has
joined SBI Funds Management (P) Ltd as Chief Manager - Customer Service. He has
over 19 years of experience and started his career in the Aviation Industry (Customer
36
Service) and later moved on to Banking. His last assignment was in the Kotak
Mahindra Bank as Chief Manager - Customer Contact Centre.

EQUITY OUTLOOK:

As the Murphy’s law says, “anything that can go wrong will go wrong”. India was a
classic example of this. Sticky inflation, depreciating currency and rising interest rates
coupled with policy inaction and execution failure led to a poor performance by Indian
capital markets during FY 2019. Corporate profitability took a major hit further
impacting asset creation. Political situation remained worrisome which put the whole
policy making in jeopardy. Headwinds from overseas markets, mostly fuelled by debt
crisis in Europe, were also the key triggers for the poor performance of stock markets
in India. Corporate profitability is likely to remain depressed in the near future given
the higher input costs, wages, interest rates, steep depreciation in currency and higher
competitive intensity. With a hazy outlook and depressed profitability, corporate India
seems reluctant to commit new capital locally. Most of the capex has been stalled,
delayed or suspended. The situation will certainly put to test Indian corporates’
wherewithal to navigate this challenging business environment. The economy cannot
afford continuance of sticky inflation, rising interest rates and a weaker currency.
While demand is an addressable issue with marginal stretch from the policy side – it is
the governance that needs to step-up its response to the glaring supply gap on most of
the input parameters. One can expect a tactical readjustment by polity to get the
structural India story back on track sooner. There exists a possibility of an outlier
“blue-swan” of synchronized occurrence of Y favourable events like – softened interest
rates, global commodities and reversal of the currency slide (they all have high
interlinks). In Today’s pain lies tomorrow’s gain. We expect this period to offer a good
opportunity to investors to participate in the long-term India story. In this scenario we
prefer to focus on bottom-up stock picking with core beliefs in terms of quality

37
(business, management, and cash flows), prudence (on cash utilization) and agility (in
terms of timing and allocation). We prefer to look for businesses with strong franchise
value, large consumption compulsion canvass opportunity and penetration potential.
We also remain alert to opportunities that provide tactical returns on Asset plays at
attractive valuations and rate sensitive’s given impending policy response. We
recommend investors to maintain the discipline of asset allocation and use the
downturn in equity market as an opportunity to gradually build exposure.

Operations of the schemes:

SBI Mutual Fund manages 28 open ended and 11 close ended schemes, out of which
17 are equity schemes (2 close ended),1 balance scheme, 2 liquid schemes,1 gilt
scheme,16 debt schemes (9 close ended) and 1 Gold ETF scheme & 1 Gold Fund
scheme. SBI Mutual Fund continues to hold certain securities which were sold by it
but these have not been got transferred by the buyers in their names. These securities
do not belong to SBIMF, but are held on behalf of the unknown buyers and not as
Owners/Investors. Such securities are transferred to the buyers against claims after
establishing the genuineness of the claim. The market value of such securities as on
31st March 2019 is ` 14.89 crore

Scheme-wise commentary:

SBI Blue Chip Fund:

has generated a return of (5.34%) (31st March 2011 to 31st March 2019) as compared
to a return of (9.23%) for its benchmark (BSE100). The fund has outperformed the
benchmark due to its underweight on Financials, Materials, Industrials and IT.

Magnum Tax Gain Scheme 1993:

38
has performed very well and has outperformed the benchmark index (BSE100). Most
of our sectoral calls, in terms of being underweight financials and overweight
pharmaceuticals, cement, etc., have worked well for us. Even our bottoms up stock
picks have performed exceedingly well contributing meaningfully to the performance
of the Fund.

SBI Infrastructure Fund – Series I:

has generated a performance of (16.61%) during the period 31st March 2011 to 31st
March 2019, as compared to a return of (9.23%) for its benchmark (BSE100). The
fund cannot invest in Healthcare and Consumer Staples, which were the main drivers
of performance of the BSE 200 during the fiscal year 2011/2019.

Magnum NRI – FAP:

has generated a return of (2.92%) during the period 31st March 2011 to 31st March
2019, as compared to a return of (9.23%) for its benchmark (BSE100). The fund
outperformed the benchmark through the execution of active asset allocation between
equity and cash to benefit from increased volatility in the market.

Magnum IT Fund:

has generated a return of (3.15%) (31st March 2011 to 31st March 2019) as compared
to a return of (7.19%) for its benchmark (BSE IT Index). The outperformance was
driven by higher allocation to midcaps and prudent stock selection among large-caps.

Magnum FMCG Fund:

has generated a return of 26.63% (31st March 2011 to 31st March 2019) as compared
to a return of 24.94% for its benchmark. (BSEFMCG Index). The fund has

39
outperformed the benchmark due to overweight on VST Industries, TTK Prestige,
Marico and underweight on United Spirits and Dabur.

Magnum Index Fund

has generated a return of (8.96%) (31st March 2011 to 31st March 2019) as compared
to a return of (9.23%) for its benchmark (S&P CNX Nifty). The Magnum Index Fund
does not take any view on the market, the objective being to replicate the performance
of its benchmark.

Magnum Pharma Fund:

has generated a return of 9.66% (31st March 2011 to 31st March 2019) as compared
to a return of 10.00% for its benchmark (BSE Healthcare Index). Though, the fund
benefited from positive active exposure in IPCA, Divis, Strides and from holding
Lupin, the fund underperformed the benchmark from being underweight Sun
Pharma, GSK Pharma and Ranbaxy.

SBI Arbitrage Opportunities Fund

has generated a performance of 8.62% (31st March 2011 to 31st March 2019) as
compared to a return of 8.45% for its benchmark (Crisil Liquid Fund Index). With the
advent of technology on the trading desks, arbitrage opportunities have shrunk
drastically over the last few years. Nevertheless, the fund is still delivering returns
better than Crisis Liquid Fund Index, its benchmark.

40
 COMPARISON 1

Scheme ICICI Pru Focused SBI Blue Chip Reliance Equity

Fund
Bluechip Equity Fund-RP(G)
 
(G) (G)

Fund class Large cap Large cap Large cap

Fund Type Open ended Open ended Open ended

Ranking Rank 1 Rank3 Rank5

Scheme assets Rs in 3809.54 686.36 1056.83

cr
(as on June 30,2019)

Inception date May 7, 2008 Jan 20, 2006 Mar 07, 2006

41
Bench mark S&P CNX NIFTY BSE 100 S&P CNX NIFTY
Minimum investment 5000 5000 5000
(in Rs.)
AMC Assets (in cr, as 73049.66 47184.11 80694.47
on june 30,2019)
Latest NAV (Rs/unit) 16.50000 14.54000 13.25910
Performance
3 months 9.1% 11.8% 13.2%
6 months -3.5% 3.3% -2.0%
1 year 10.1% 19.5% 11.0%
Portfolio
Top 5 holdings HDFC bank, ITC, HDFC, HDFC Bank, Divis labs, Reliance,
Infosys, ICICI Bank, ICICI Bank,
ICICI Bank, Infosys,
Infosys,
Bajaj auto HCL Tech
HCL Tech
Weightage to top 5 34.94% 27.86% 23.88%
holdings
Top 3 Sectors Banking/Finance, Banking/finance, Engineering,
Technology, oil and technology, automotive,
Gas pharmaceuticals Pharmaceuticals
Weightage to top 3 50.48% 50.54% 35.79%
sectors

42
 COMPARISON 2
Scheme ICICI Pru Tax Plan SBI Magnum Tax Reliance Tax Saver
Gain (ELSS)
Fund class ELSS ELSS ELSS

Fund Type Open Ended Open Ended Open Ended

Ranking Rank 1 Rank 3 Rank 2

Scheme assets rs in cr 1995.14 4518.19 1969.84

(as on june 30,2019)

Inception date Aug 09, 1999 Mar 31, 1993 Aug 23, 2005

Bench mark S & P CNX 500 BSE 100 BSE 100

Minimum 500 500 500

investment (in rs.)

AMC Assets (in cr, as 73,049.66 47,184.11 80,694.47

on june 30,2019)

Latest NAV (Rs/unit) 138.96000 60.80000 21.75220

As on Aug 17, 2019

43
Performance

3 months 9.5% 9.9% 7.3%

6 months -0.8% 1.8% 0.8%
1 year 9.9% 19.4% 11.9%
Portfolio

Top 5 holdings Reliance, Infosys, HDFC Bank, Eicher Motors,

Bharti Airtel, ICICI Bank, Maruti Suzuki,
ICICI Bank, Hind
TCS, HDFC, Madras Cements,
Zinc
Grasim Bajaj Finance, SBI
Weightage to top 5 32.1% 25.06% 25%
holdings

Top 3 Sectors Oil and gas, Banking/ Engineeri

Banking/Finance, Finance, ng,
Technology
Technology, Automotiv
Pharmaceuticals e,
Banking/Finance
Weightage to top 3 51.36% 45.11% 51.54%
sectors

Management &
fees
Fund manager Chintan Haria Jayesh Shroff Ashwani
Kumar/Viral
Berawala
Entry load 0% 0% 0%
Exit load 0% 0% 0%

44
ANALYSIS: In ELSS category, there are various fund houses that offers scheme as it is very
attracting to customers, ICICI Pru tax plan is ranked 1 in this category by CRISIL as it has a
very good performance and recommended as a strong buy, whereas SBI is ranked 3 and is an
average performer here and reliance is ranked 2 and recommended to be kept
but also with an alert to keep a check on the performance due to its decreasing NAV

COMPARISON 3

Scheme ICICI Pru SBI Reliance

Infrastructure Fund Infrastructure Infrastructure
Fund Fund
Series I
Fund class Thematic – Thematic – Thematic -
Infrastructure Infrastructure Infrastructure

Fund Type Open Ended Open Ended Open Ended

Ranking Rank 3 Rank 4 NOT RANKED

Scheme assets rs in 1864.49 649.80 633.01

cr (as on june
30,2019)

Inception date Aug 16, 2005 May 11, 2007 June 23, 2009

Bench mark BSE 100 BSE 100 BSE 100

45
Minimum 5000 5000 5000
investment (in rs.)

AMC Assets (in cr, 73,049.66 47,184.11 80,694.47

as
on June 30,2019)

Latest NAV 25.11000 7.65000 6.67810

(Rs/unit) As on Aug
17, 2019

46
Performance

3 months 9.9% 11.5% 3.5%

6 months -9.1% -8.2% -18.5%

1 year -2.3% -8.2% -5.2%

Portfolio

Top 5 holdings Reliance, ONGC, HDFC Bank, ICICI ICICI Bank, KSB
HDFC Bank, Bank, Power Pumps,
Bharti airtel, Grid Corp, Coal Jaiprakash Asso,
ICICI Bank India, ONGC Jindal Saw,
Larsen
Weightage to top 5 36% 34.73% 24.87%
holdings

Top 3 Sectors Banking/Finance, Oil Banking/Finance, Oil Cements, Metals &

& Gas, Utilities & Gas, Cement Mining, Engineering

Weightage to top 3 56.81% 64.19% 58.43%

sectors

Management & fees

Fund manager Yogesh Bhatt Ajit Dange Sunil Singhania

Entry load 0% 0% 0%

Exit load 1.00% 1.00% 1.00%

ANALYSIS: In themetic infrastructure category, these fund houses are not doing well, ICICI
Pru, an outperformer, is ranked 3 in this category with an average buy and a “better switch
to other scheme” recommendation. Whereas SBI is ranked 4 with below average
performance and “sell” recommendation but Reliance has not yet gained any rank or
recommendation.

47
Chapter 4

48
 Introduction of the company

1.1 Organization’s Profile

Wealthier create financial awareness by introducing blogs around financial services

and products. The organization came into existence in the year 2020. With a thorough
understanding to fulfil financial goals of our esteemed clientele, the company has
designed our offerings in such a way that most of our client's requirement in the area
of mutual fund, debt, insurance and financial advisory services are fulfilled under a
single umbrella. Our emphasis has always been on quality and timely delivery of
services. Our clients will reap the benefits of expert advice, fact-based guidance and
support from someone who genuinely cares for their growth.

As our focus has always been in all clientele level, we devise customized solutions for
different clients suiting their financial goals fulfils. Our esteemed client's financial
goals fulfil are paramount to us. The success of our clients is the biggest reward for
us. We understand our client's needs and develop solutions for them accordingly.
Creativity and innovation are key factors to everything we do. We encourage new
ideas which help us address unique opportunities.

We believe in development of our self and continuously hone our skills, setting higher
targets of performance for ourselves. We are aware of the trust our clients place in us
and ensure that we do everything possible to raise our bar each time. It is because of
this quality of service we provide that we get loyalty and repeat business from our
clients. We are a catalyst in our client's growth. Providing customized solutions to our
client's financial goals fulfil are paramount to us, hence our mantra: “if our client's
gratified, we gratified”.

VISION: - To create financial awareness by introducing blogs around financial

services and products.

MISSION: -To help our customers achieve financial prosperity and peace of mind.

3.2 PRODUCT
49
  Mutual Fund
 Financial Blogs
 Equity
 Pre IPO-Shares
 Mutual fund

 SERVICES

Making Blogs and articles on Financial Services, Helps in investing in Mutual

funds, Pre IPO shares, Equity Market.

Mr. Aakash Baberwal is the founder of Wealthier is Financial Advisors & Head of
Business Development. He has many years of experience in financial service
industry, which encompasses the entire range of asset management services
including Alternative Funds, Mutual Fund, PMS, Retail Broking, Insurance as
well as Wealth Management.

Financial services Blogging and Pre IPO. Which is further classified as

FINANCE

MARKETING AND SALES

FINANCIAL BLOGGING/LITERACY

50
 CHAPTER 5
DATA ANLYSIS & INTERPRETATION

I.Data Analysis and Interpretation

1. Comparison of Equity schemes of HDFC and SBI mutual funds.
HDFC SBI
Name of the scheme HDFC- Capital SBI Magnum Multiplier
Builder Plus
Type of structure Open ended Open ended
Type of investment Equity Equity
Capitalization type Large cap and Mid Large cap and mid cap
cap
Benchmark CNX Nifty CNX nifty
NAV ₹ 201.71 ₹144.4265
Total Number of 46 52
Stocks

Annual returns trend of Equity schemes (large cap) from 2005 to 2014:
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
HDF 47.60 21.58 68.65 -54.89 92.91 28.44 -23.64 28.42 10.37 51.95
C
SBI 70.17 49.83 64.89 -55.19 87.53 19.30 -25.75 32.47 10.54 48.26
CNX 36.34 39.38 54.77 -51.79 75.76 17.95 -24.62 27.7 6.76 31.39
Nifty

Analysis: From the above table we can analyze that both the funds have
performed extremely well compared to the benchmark except in the years 2008 and
2011 when they incurred negative returns. HDFC and SBI had the highest return of
92.91% and 87.53% in the year 2009 respectively.
Interpretation: The fund managers have been able to adopt good strategies
thereby enabling them to outperform the Index. SBI fund has sustained more losses
51
in 2008 and 2011 as it has higher exposure to equity nearly 97% when compared to
HDFC which has 95% exposure to equity

CAGR trend of Equity (large cap) schemes:

1-year 3- year 5-year 7-year 10-year
HDFC 58.65 28.27 16.31 10.63 19.58
SBI 56.12 28.80 14.43 9.15 22.47

III.ANALYSIS
HDFC has consistently outperformed SBI in terms of trailing returns of the
fund except for the 3-year and 10-year investment period. The lowest returns gained
have been for a 7-year investment period which is 10.63% and 9.15% and the
highest returns gained are for a 1-year investment horizon with 58.65% and 56.12%
by HDFC and SBI respectively

Interpretation: Both the funds have given higher returns when compared to
traditional investment options like Fixed Deposits, PPFs which give 8.5%-9.5%. The
investors should hence invest at for a period of 1 year to get the maximum benefit.

Risk analysis of Equity (large cap) schemes:

Standard Sharpe’s Beta Alpha
deviation Ratio
HDFC 15.00 1.34 0.92 7.28
SBI 14.36 1.41 0.88 8.14

Analysis: HDFC and SBI have nearly the same level of standard deviation and
Beta values approximating to 15 and 0.92 respectively. HDFC and SBI both have a
positive Sharpe’s ratio and both the funds have Alpha values of greater than 1.

52
 Interpretation: Both the funds have high standard deviations indicating
considerable amount of risk. SBI has a lower Beta value of 0.88 than HDFC which
has a Beta value of 0.92 which means that SBI will perform better than HDFC in a
bear market. The Sharpe’s Ratio of HDFC is lower than SBI value, which means
that it would be better for an investor to invest in a riskless asset instead. Hence in
terms of risk, SBI Magnum Multiplier Plus is a better performer.

Portfolio Valuation of Equity (large cap) schemes

HDFC SBI
P/B Ratio 3.00 3.60
P/E Ratio 20.11 22.09
Analysis: SBI has higher P/E and P/B ratios of Rs.22.02 and Rs.3.60 against
HDFC which has P/E and P/B ratios of Rs.20.11 and Rs.3.00 respectively.

SBI
P/B ratio
HDFC
0510152025

Interpretation: The P/E ratio indicates that an investor would have to pay
Rs.22.09 and Rs.20.11 per rupee of earnings for SBI and HDFC respectively; hence
an investor would have to shell out more for a rupee of earning in case of SBI. Also
P/B ratio specifies if the fund is undervalued or overvalued, SBI has a higher ratio
than HDFC. These two figures indicate that SBI is following a more aggressive
growth strategy when compared to HDFC.

Portfolio Expense of Equity (large cap) schemes:

HDFC SBI
Expense ratio 2.76 2.59

Analysis: SBI has a lower expense ratio of 2.59% when compared to 2.76% of
HDFC.

53
Interpretation: The expense ratio represents the operating expenses incurred by the
fund. According to the chart above we can notice that HDFC capital Builder has
higher expense ratio indicating that an investor would have to pay 2.76% of the
value he invested to cover the operating expenses apart from the sales load and
brokerage. Thus, it is cheaper for an investor if he invests in SBI Magnum
Multiplier Plus.

CHAPTER 6
FINDINGS & CONCLUSION

6.1 Conclusion The findings show that mutual funds as an investment option
have displayed tremendous growth potential when the markets are optimistic and
when wise choices are made. They have performed much better than traditional
investment options in the long term and thus help investor beat inflation to some
extent. It is of paramount importance that investors do not make a rash decision
simply by looking at the return figures generated by an individual fund, they
should compare funds based on the risk and return analysis and find out which
fund is giving better returns commensurate to the risk taken. Statistical analysis
helps investors make a wise decision looking at facts based on numbers instead of
just going by their gut feeling. Also compared to the traditional options, mutual
funds provide a more professional approach towards investment and some amount
of diversification. The mutual fund industry in India is still in its nascent stages
when compared to its American and European counterparts, which means that
there is still a huge untapped market and potential for good returns. A thorough
analysis clubbed with timely investments might prove Mutual Funds to be an
excellent form of investment.

Mutual Funds, though a very profitable form of investment, with limited

54
 risk factors compared to shares and debentures, have not yet shown itself to the
potential investors so as to invest in favorable returns. So as to make mutual
funds familiar, initiatives should be first started from part of the service providers
in form of awareness campaigns, innovative financial instruments, advertisements
etc which can help trigger the growth of this mode of finance sector which can
thereby help promote the individual, institutional as well as economic goals of the
country.
The construction of the mutual fund scheme’s portfolio is done by taking
various factors so even after evaluating the mutual funds and ranking them we
cannot say which is the best fund house or scheme in all. Nothing is certain in
case of mutual funds as they are subject to market risks, an estimate can be
made considering various past performances and future outlooks and best
money out of these schemes can be generated.
Running a successful Mutual Fund requires complete understanding of the
peculiarities of the Indian Stock Market and also the psyche of the small
investors. This study has made an attempt to understand the financial behavior
of Mutual Fund investors in connection with the preferences of Brand (AMC),
Products, Channels etc. I observed that many of people have fear of Mutual
Fund.
They think their money will not be secure in Mutual Fund. They need the
knowledge of Mutual Fund and its related terms. Many of people do not have
invested in mutual fund due to lack of awareness although they have money to
invest. As the awareness and income is growing the number of mutual fund
investors are also growing.
“Brand” plays important role for the investment. People invest in those
Companies where they have faith or they are well known with them. There are
many AMCs in Mumbai but only some are performing well due to Brand
55
awareness. Some AMCs are not performing well although some of the schemes
of them are giving good return because of not awareness about Brand.
Reliance, UTI, SBIMF, ICICI Prudential etc. they are well known Brand, they
are performing well and their Asset Under Management is larger than others
whose Brand name are not well known like Principle, Sundaram, etc.

56
 ANNEXURE
QUESTIONNARE:
I am shubham dubey MMS Student of BVIMSR currently
doing my project. The purpose of this questionnaire is to understand the
MUTUAL FUNDS: Comparison of various schemes under Equity
I) General Information
1. Which of the following categories best described Annual Income?
o 18-45
o 31-45
o 46-60
o Older then 60
2. Which category best describes your annual income?
o Under 1 lakh
o 1-5 lakh
o 5-10 lakh
o Over 10 lakhs
3. How much do you save from Income?
o 0-10
o 11-20
o 21-30
o Above 30
4. Do you read offer document / key information memorandum before
investing in mutual funds?
o Yes
o No
o Maybe
5. Do you have idea about mutual fund type like Equity, Balanced and debt
funds?
o Yes
o No
o Maybe

57
6. Do you think you need to track the investment?
o Yes
o No
o Maybe
7. What is your frequency to track the investment?
o Monthly
o Quarterly
o Semi-Annually
o Annually
8. What parameter do you prefer to invest in mutual funds?
o Performance of mutual fund
o Brand name
o Tax Benefit
o Any other
9. Do you think Mutual fund will give you guaranteed returns?
o Yes
o No
o Maybe
10. Do you have idea about mutual fund type like Equity, Balanced and
debt funds?
o Yes
o Nu
o Maybe
11. Do you think past performance assure you the good returns?
o Yes
o No
o Maybe

58
CHAPTER 7
BIBLIOGRAPHY

NEWSPAPER

TELEVISION CHANNEL (CNBC AAWAJ)

MUTUAL FUND HAND BOOK

FACT SHEET AND STATEMENT

WWW.SBIMF.COM

WWW.MONEYCONTROL.COM

59
REFERENCES

 www.amfiindia.com www.valueresearchonline.com

 www.mutualfundsindia.com

 www.reliancemutual.com

 www.sbimf.com

 www.icicipruamc.com

 www.moneycontrol.com

Thank you
60