18-09-2012, 03:48 PM
COMPARATIVE ANALYSIS OF MUTUAL FUND ON THE BASIS OF ALPHA, BETA, AND STANDARD DEVIATION
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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 particular Mutual Fund as related to stock market is.
3. 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 OBJECTIVE:
To evaluate investment performance of selected mutual funds in terms of risk and
return. Also to analyze the performance of mutual fund schemes on the basis of various
parameters. Primarily to understand the basic concepts of Mutual fund and its benefits as
an investment avenue.
Secondly, to compare and evaluate the performance of different schemes of mutual
fund companies on the basis of risk, return and volatility
SCOPE OF PROJECT:
The Schemes were categorized and selected on evaluating their performance and
relative risk. The scope of the project is mainly concentrated on the different categories
of the mutual funds such as equity schemes, debt funds, balanced funds and liquid fund.
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:
INDIA INFOLINE is a one-stop financial services shop, most respected
for quality of its advice, personalized service and cutting-edge technology.
VISION is “to be the most respected company in the financial services space.”
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 .
Investment Highlights
Strong growth in Industry volumes and rising retail participation Average daily
volumes in the equity markets (cash and derivative combined) have increased by
72%from to Rs.167bn in FY 05 to Rs.288bn in FY 06.With the economy growing at 7-
8% a mounting per capita income and growing BPO culture, there is a new class of
young investors, which are moving towards the equity market.
IIL is majorly present in the retail segment. With the rising income levels, risk- taking
ability of people and the confidence in the India Inc, participation from the retail crowd is
increasing y-o-y. IIL is aggressively increasing its presence by opening branches in
different cities. In FY QI-07, they roll out 56 new branches and acquired 25000 new
customers. And it expects them to have 350 and 430 branches by FY 08 respectively.