26-04-2014, 02:15 PM
COMPARATIVE ANALYSIS OF MUTUAL FUND ON THE BASIS OF ALPHA, BETA, AND STANDARD DEVIATION
COMPARATIVE ANALYSIS.pdf (Size: 356.21 KB / Downloads: 31)
Executive Summary
The project has been carried out at “India Infoline Ltd” with the title
“Comparative Analysis of Mutual Fund on the basis of Alpha, Beta and Standard
Deviation”.
The main function of having analysis of Mutual fund is to pinpoint the strong
points and weaknesses of mutual fund schemes.
For this I have taken the following parameters:
Analyzing Mutual Fund using:-
1.
Alpha: - I came to know how particulars Mutual Fund schemes performed related
to what it was expected to do.
2.
Beta:- By comparing Mutual Fund on the basis of beta we come to know how
volatile a
3.
particular Mutual Fund as related to stock market is.
Standard Deviation:- The standard deviation of a fund measures this risk by
measuring the degree to which the fund fluctuates in relation to its mean return.
RESEARCH METHODOLGY:
Research Methodology is a very organized and systematic medium through which
a particular case or problem can be solved. It is analytical, descriptive and quantitative
research where the comparison between the different mutual fund schemes is made on the
basis of risk, volatility and return.
India Infoline Ltd:
India Infoline Ltd is listed on both the leading stock exchanges in India, viz. the
Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The India
Infoline group, comprising the holding company, India Infoline Ltd and its subsidiaries,
straddles the entire financial services space with offerings ranging from Equity research,
Equities and derivatives trading, Commodities trading, Portfolio Management Services,
Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings
instruments to loan products and Investment banking. India Infoline also owns and
manages the websites, www.indiainfoline.com and www.5paisa.com .
INTRODUCTION TO MUTUAL FUND
A Mutual Fund is a trust that pools the savings of a number of investors who
share a common financial goal. The money thus collected is invested by the fund
manager in different types of securities depending upon the objective of the scheme.
These could range from shares to debentures to money market instruments. The income
earned through these investments and the capital appreciation realized by the scheme are
shared by its unit holders in proportion to the number of units owned by them (pro rata).
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 portfolio at a
relatively low cost. Anybody with an investible surplus of as little as a few thousand
rupees can invest in Mutual Funds.
Each Mutual Fund scheme has a defined investment objective and strategy
mutual fund is the ideal investment vehicle for today’s complex and modern financial
scenario. Markets for equity shares, bonds and other fixed income instruments, real
estate, derivatives and other assets have become mature and information driven. Price
changes in these assets are driven by global events occurring in faraway places.
A typical individual is unlikely to have the knowledge, skills, inclination and time to keep
track of events, understand their implications and act speedily. An individual also finds it
difficult to keep track of ownership of his assets, investments, brokerage dues and bank
transactions etc.
MORGAN STANLEY MUTUAL FUND
Morgan Stanley is a world wide financial services company and its leading in the
market in securities, investment management and credit services. Morgan Stanley
investment management was established in the year 1975. it provides customized asset
management services and products to governments, corporations, pension funds and non
profit organizations. Its services are also extending to high net worth individuals and
retail investors. In India it is known as Morgan Stanley investment management Private
Ltd. and its AMC is Morgan Stanley Mutual Fund. This is the first closed end diversified
equity scheme serving the needs of Indian retail investors focusing on the long term
capital appreciation.