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1.1 INTRODUCTION TO MUTUAL FUND

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

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

match the stated investment objectives of the scheme. Since the stated investment

objective of a mutual fund scheme generally forms the basis for an investor's decision

to contribute money to the pool, a mutual fund can not deviate from its stated

objectives at any point of time.

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

management skills and necessary research works ensures much better return than

what an investor can manage on his own. The capital appreciation and other incomes

earned from these investments are passed on to the investors (also known as unit

holders) in proportion of the number of units they own.


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1.2 INDUSTRY PROFILE

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 dramatic improvements, 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. 470bn in March 1993 and till April 2004,it

reached the height of 1,540 bn.

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.

First Phase - 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It

was set up by the Reserve Bank of India and functioned under the Regulatory and

administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from

the RBI and the Industrial Development Bank of India (IDBI) took over the

regulatory and administrative control in place of RBI. The first scheme launched by

UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6700 of assets under

management.

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

Entry of non UTI mutual funds. SBI Mutual Fund was the first followed by

Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),

Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual

Fund (Oct 92). LIC in 1989 and GIC in 1990. The end of 1993 marked Rs.47,004 as

assets under management.


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Third Phase - 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian

mutual fund industry, giving the Indian investors a wider choice of fund families.

Also, 1993 was the year in which the first Mutual Fund Regulations came into being,

under which all mutual funds, except UTI were to be registered and governed. The

Erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first

private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The industry now

functions under the SEBI (Mutual Fund) Regulations 1996.

Fourth Phase - since February 2003

This phase had bitter experience for UTI. It was bifurcated into two separate

entities. One is the Specified Undertaking of the Unit Trust of India with AUM of Rs

29,835crores (as on January 2003). The Specified Undertaking of Unit Trust of India,

functioning under an administrator and under the rules framed by Government of

India and does not come under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and

LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.

With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs

76,000crores of AUM and with the setting up of a UTI Mutual Fund, conforming to

the SEBI Mutual Fund Regulations, and with recent mergers taking place among

different private sector funds, the mutual fund industry has entered its current phase of

consolidation and growth. As at the end of September, 2004, there were 29 funds,

which manage assets of Rs 153108crores under 421 schemes.


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GROWTH IN ASSETS UNDER MANAGEMENT

Note: Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified

Undertaking of the Unit Trust of India effective from February 2003. The Assetsunder management of the Specified Undertaking of the Unit Trust of India has

therefore been excluded from the total assets of the industry as a whole from February

2003 onwards.


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UNDERSTANDING MUTUAL FUND

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

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

match the stated investment objectives of the scheme. Since the stated investmentobjective of a mutual fund scheme generally forms the basis for an investor's decision

to contribute money to the pool, a mutual fund can not deviate from its stated

objectives at any point of time.

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

management skills and necessary research works ensures much better return than

what an investor can manage on his own. The capital appreciation and other incomes

earned from these investments are passed on to the investors (also known as unit

holders) in proportion of the number of units they own.

ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the

organizational set up of a mutual fund:


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Types of mutual fund schemes

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.

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

owner of the assets of the fund in the same proportion as his contribution amount put

up with the corpus (the total amount of the fund). Mutual Fund investor is also known

as a mutual fund shareholder or a unit holder.

Any change in the value of the investments made into capital market

instruments (such as shares, debentures etc) is reflected in the Net Asset Value (NAV)

of the scheme. NAV is defined as the market value of the Mutual Fund scheme's

assets net of its liabilities. NAV of a scheme is calculated by dividing the market

value of scheme's assets by the total number of units issued to the investors.


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General Classification of Mutual Funds

Open-end Funds

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

Open-end Funds. The fund size (corpus) of an open-end fund is variable (keepschanging) because of continuous selling (to investors) and repurchases (from the

investors) by the fund. An open-end fund is not required to keep selling new units to

the investors at all times but is required to always repurchase, when an investor wants

to sell his units. The NAV of an open-end fund is calculated every day.

Closed-end Funds

Funds that can sell a fixed number of units only during the New Fund Offer

(NFO) period are known as Closed-end Funds. The corpus of a Closed-end Fund

remains unchanged at all times. After the closure of the offer, buying and redemption

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

the interests of the investors, SEBI provides investors with two avenues to liquidate

their positions:

Closed-end Funds are listed on the stock exchanges where investors can

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

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

(updated every Thursday).

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

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

Load Funds and No-load Funds

Load Funds

Mutual Funds incur various expenses on marketing, distribution, advertising,portfolio churning, fund manager's salary etc. Many funds recover these expenses

from the investors in the form of load. These funds are known as Load Funds. A load

fund may impose following types of loads on the investors:

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

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

investor's contribution amount to the fund.


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

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

redemption proceeds to an outgoing investor.

Deferred Load - Deferred load is charged to the scheme over a period of time.

Contingent Deferred Sales Charge (CDSC) - In some schemes, the percentage of

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

known as Contingent Deferred Sales Charge.

No-load Funds

All those funds that do not charge any of the above mentioned loads are

known as No-load Funds.

Tax-exempt Funds - Funds that invest in securities free from tax are known as Tax-

exempt Funds. All open-end equity oriented funds are exempt from distribution tax

(tax for distributing income to investors). Long term capital gains and dividend

income in the hands of investors are tax-free.

Non-Tax-exempt Funds - Funds that invest in taxable securities are known as Non-

Tax-exempt Funds. In India, all funds, except open-end equity oriented funds are

liable to pay tax on distribution income. Profits arising out of sale of units by an

investor within 12 months of purchase are categorized as short-term capital gains,

which are taxable. Sale of units of an equity oriented fund is subject to Securities

Transaction Tax (STT). STT is deducted from the redemption proceeds to an investor.


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BROAD MUTUAL FUND TYPES

1. Equity Funds

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

fund types, but they also provide higher returns than other funds. It is advisable that

an investor looking to invest in an equity fund should invest for long term i.e. for 3

years or more. There are different types of equity funds each falling into different riskbracket. In the order of decreasing risk level, there are following types of equity

funds:

a. Aggressive Growth Funds - In Aggressive Growth Funds, fund managers

aspire for maximum capital appreciation and invest in less researched shares

of speculative nature. Because of these speculative investments Aggressive

Growth Funds become more volatile and thus, are prone to higher risk than

other equity funds.


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b. Growth Funds - Growth Funds also invest for capital appreciation (with time

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

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

market in the future. Without entirely adopting speculative strategies, GrowthFunds invest in those companies that are expected to post above average

earnings in the future.

c. Specialty Funds - Specialty Funds have stated criteria for investments and

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

Criteria for some specialty funds could be to invest/not to invest in particular

regions/companies. Specialty funds are concentrated and thus, are

comparatively riskier than diversified funds. Following are the types of

specialty funds:

i. Sector Funds: Equity funds that invest in a particular sector/industry

of the market are known as Sector Funds. The exposure of these funds

is limited to a particular sector (say Information Technology, Auto,

Banking, Pharmaceuticals or Fast Moving Consumer Goods) which is

why they are more risky than equity funds that invest in multiple

sectors.

ii. Foreign Securities Funds: Foreign Securities Equity Funds have the

option to invest in one or more foreign companies. Foreign securities

funds achieve international diversification and hence they are less risky

than sector funds. However, foreign securities funds are exposed to

foreign exchange rate risk and country risk.

iii. Mid-Cap or Small-Cap Funds: Funds that invest in companies

having lower market capitalization than large capitalization companies

are called Mid-Cap or Small-Cap Funds. Market Capitalization of a

company can be calculated by multiplying the market price of the

company's share by the total number of its outstanding shares in the

market. The shares of Mid-Cap or Small-Cap Companies are not as

liquid as of Large-Cap Companies which gives rise to volatility in
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share prices of these companies and consequently, investment gets

risky.


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iv. Option Income Funds: While not yet available in India, Option

Income Funds write options on a large fraction of their portfolio.

Proper use of options can help to reduce volatility, which is otherwise

considered as a risky instrument. These funds invest in big, highdividend yielding companies, and then sell options against their stock

positions, which generate stable income for investors.

d. Diversified Equity Funds - Except for a small portion of investment in liquid

money market, diversified equity funds invest mainly in equities without any

concentration on a particular sector. These funds are well diversified and

reduce sector-specific or company-specific risk. However, like all other funds

diversified equity funds too are exposed to equity market risk. As per the

mandate, a minimum of 90% of investments by ELSS should be in equities at

all times. ELSS investors are eligible to claim deduction from taxable income

(up to Rs 1lakh) at the time of filing the income tax return. ELSS usually has a

lock-in period and in case of any redemption by the investor before the expiry

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

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

e. Equity Index Funds - Equity Index Funds have the objective to match the

performance of a specific stock market index

.The portfolio of these funds comprises of the same companies that form the

index and is constituted in the same proportion as the index. Equity index

funds that follow broad indices (like S&P CNX Nifty, Sensex) are less risky

than equity index funds that follow narrow sectoral indices (like BSE BANK

EX or CNX Bank Index etc). Narrow indices are less diversified and therefore,

are more risky.

f. Value Funds - Value Funds invest in those companies that have sound

fundamentals and whose share prices are currently under-valued. The portfolio

of these funds comprises of shares that are trading at a low Price to Earning

Ratio (Market Price per Share / Earning per Share) and a low Market to Book

Value (Fundamental Value) Ratio. Value stocks are generally from cyclical

industries (such as cement, steel, sugar etc.) which make them volatile in the
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short-term. Therefore, it is advisable to invest in Value funds with a long-term

time horizon as risk in the long term, to a large extent, is reduced.

g. Equity Income or Dividend Yield Funds - The objective of Equity Income

or Dividend Yield Equity Funds is to generate high recurring income andsteady capital appreciation for investors by investing in those companies

which issue high dividends (such as Power or Utility companies whose share

prices fluctuate comparatively lesser than other companies' share prices).

Equity Income or Dividend Yield Equity Funds are generally exposed to the

lowest risk level as compared to other equity funds.

2. Debt / Income Funds

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

companies, banks, financial institutions, governments and other entities belonging to

various sectors (like infrastructure companies etc.) are known as Debt / Income

Funds. Debt funds are low risk profile funds that seek to generate fixed current

income (and not capital appreciation) to investors. In order to ensure regular income

to investors, debt (or income) funds distribute large fraction of their surplus to

investors. Although debt securities are generally less risky than equities, they are

subject to credit risk (risk of default) by the issuer at the time of interest or principal

payment. To minimize the risk of default, debt funds usually invest in securities from

issuers who are rated by credit rating agencies and are considered to be of

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

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

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

entities belonging to all sectors of the market are known as diversified debtfunds. The best feature of diversified debt funds is that investments are

properly diversified into all sectors which results in risk reduction. Any loss

incurred, on account of default by a debt issuer, is shared by all investors

which further reduces risk for an individual investor.


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

narrow focus funds that are confined to investments in selective debt

securities, issued by companies of a specific sector or industry or origin.

Some examples of focused debt funds are sector, specialized and off shoredebt funds, funds that invest only in Tax Free Infrastructure or Municipal

Bonds. Because of their narrow orientation, focused debt funds are more

risky as compared to diversified debt funds. Although not yet available in

India, these funds are conceivable and may be offered to investors very soon.

c. High Yield Debt funds - As we now understand that risk of default is present

in all debt funds, and therefore, debt funds generally try to minimize the risk

of default by investing in securities issued by only those borrowers who are

considered to be of "Investment grade". But, High Yield Debt Funds adopt a

different strategy and prefer securities issued by those issuers who are

considered to be of "Below investment grade". The motive behind adopting

this sort of risky strategy is to earn higher interest returns from these issuers.

These funds are more volatile and bear higher default risk, although they may

earn at times higher returns for investors.

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

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

that come with a lock-in period and offer assurance of annual returns to

investors during the lock-in period. Any shortfall in returns is suffered by the

sponsors or the Asset Management Companies (AMCs). These funds are

generally debt funds and provide investors with a low-risk investment

opportunity. However, the security of investments depends upon the net

worth of the guarantor (whose name is specified in advance on the offer

document). To safeguard the interests of investors, SEBI permits only those

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

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

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

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

faced large shortfalls in returns. Eventually, government had to intervene and

took over UTI's payment obligations on itself. Currently, no AMC in India

offers assured return schemes to investors, though possible.
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e. Fixed Term Plan Series - Fixed Term Plan Series usually are closed-end

schemes having short term maturity period (of less than one year) that offer a

series of plans and issue units to investors at regular intervals. Unlike closed-

end funds, fixed term plans are not listed on the exchanges. Fixed term planseries usually invest in debt / income schemes and target short-term investors.

The objective of fixed term plan schemes is to gratify investors by generating

some expected returns in a short period.

3. Gilt Funds

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

government papers (named dated securities) having medium to long term maturity

period. Issued by the Government of India, these investments have little credit risk

(risk of default) and provide safety of principal to the investors. However, like all debt

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

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

in the NAV of debt/gilt funds in an opposite direction.

4. Money Market / Liquid Funds

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

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

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

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

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

funds include Treasury Bills (issued by governments), Commercial papers (issued by

companies) and Certificates of Deposit (issued by banks).

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

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

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

investors with a regular income, moderate capital appreciation and at the same
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time minimizing the risk of capital erosion. Balanced funds are appropriate for

conservative investors having a long term investment horizon.

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

and income funds are known as Growth-and-Income Funds. These fundsinvest in companies having potential for capital appreciation and those known

for issuing high dividends. The level of risks involved in these funds is lower

than growth funds and higher than income funds.

c. Asset Allocation Funds - Mutual funds may invest in financial assets like

equity, debt, money market or non-financial (physical) assets like real estate,

commodities etc.. In other words, fund managers may switch over to equity if

they expect equity market to provide good returns and switch over to debt if

they expect debt market to provide better returns. It should be noted that

switching over from one asset class to another is a decision taken by the fund

manager on the basis of his own judgment and understanding of specific

markets, and therefore, the success of these funds depends upon the skill of a

fund manager in anticipating market trends.

5. Commodity Funds

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

food grains, crude oil etc.) or commodity companies or commodity futures contracts

are termed as Commodity Funds. A commodity fund that invests in a single

commodity or a group of commodities is a specialized commodity fund and a

commodity fund that invests in all available commodities is a diversified commodity

fund and bears less risk than a specialized commodity fund. "Precious Metals Fund"

and Gold Funds (that invest in gold, gold futures or shares of gold mines) are

common examples of commodity funds.

6. Real Estate Funds

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

invest in shares/securitized assets of housing finance companies, are known as

Specialized Real Estate Funds. The objective of these funds may be to generate

regular income for investors or capital appreciation.


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7. Exchange Traded Funds (ETF)

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

end and an open-end mutual fund. The biggest advantage offered by these funds is

that they offer diversification, flexibility of holding a single share (tradable at index

linked prices) at the same time. Recently introduced in India, these funds are quite

popular abroad.

8. Fund of Funds

Mutual funds that do not invest in financial or physical assets, but do invest in

other mutual fund schemes offered by different AMCs, are known as Fund of Funds.

Fund of Funds provide investors with an added advantage of diversifying into

different mutual fund schemes with even a small amount of investment, which further

helps in diversification of risks.

Frequently used terms

Net Asset Value (NAV) Net Asset Value is the market value of the assets of the

scheme minus its liabilities. The per unit NAV is the net asset value of the scheme

divided by the number of units outstanding on the Valuation Date.Sale Price Is the price you pay when you invest in a scheme. Also called Offer Price.

It may include a sales load.

Repurchase Price Is the price at which a close-ended scheme repurchases its units

and it may include a back-end load. This is also called Bid Price.

Redemption Price Is the price at which open-ended schemes repurchase their units

and close-ended schemes redeem their units on maturity. Such prices are NAV

related.

Sales Load Is a charge collected by a scheme when it sells the units. Also called,

Front-end load. Schemes that do not charge a load are called No Load schemes.

Repurchase or Back-end Load Is a charge collected by a scheme when it buys

back the units from the unit holders.


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1.3 COMPANY PROFILE

UTI Mutual Fund is managed by UTI Asset Management Company Private

Limited (Estb: Jan 14, 2003) who has been appointed by the UTI Trustee Company

Private Limited for managing the schemes of UTI Mutual Fund and the schemes

transferred / migrated from UTI Mutual Fund.

The UTI Asset Management Company has its registered office at: UTI Tower,

Gn Block, Bandra - Kurla Complex, Bandra (East), Mumbai - 400 051 will provide

professionally managed back office support for all business services of UTI Mutual

Fund (excluding fund management) in accordance with the provisions of the

Investment Management Agreement, the Trust Deed, the SEBI (Mutual Funds)

Regulations and the objectives of the schemes. State-of-the-art systems and

communications are in place to ensure a seamless flow across the various activities

undertaken by UTI AMC.

UTI AMC is a registered portfolio manager under the SEBI (Portfolio

Managers) Regulations, 1993 on February 3 2004, for undertaking portfolio

management services and also acts as the manager and marketer to offshore funds

through its 100 % subsidiary, UTI International Limited, registered in Guernsey,Channel Islands.

UTI Mutual Fund has come into existence with effect from 1st February 2003.

UTI Asset Management Company presently manages a corpus of over Rs 34500

Crores.

UTI Mutual Fund has a track record of managing a variety of schemes

catering to the needs of every class of citizenry. It has a nationwide network

consisting 70 UTI Financial Centers (UFCs) and UTI International offices in London,

Dubai and Bahrain. With a view to reach to common investors at district level, 4

satellite offices have also been opened in select towns and districts. It has a well-

qualified, professional fund management team, who has been highly empowered to

manage funds with greater efficiency and accountability in the sole interest of unit

holders.


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It has reset and upgraded transparency standards for the mutual funds industry.

All the branches, UFCs and registrar offices are connected on a robust IT network to

ensure cost-effective quick and efficient service. All these have evolved UTI Mutual

Fund to position as a dynamic, responsive, restructured, efficient, and transparent andSEBI compliant entity.

UTI Asset Management Company Ltd. manages the activities of UTI Mutual

Fund in India. The mutual funds organization offers a variety of schemes to Indian

customers. UTI Mutual Fund has several offices located across the country of India.

The corporate head office of UTI Mutual Fund is situated in Mumbai.

SPONSORS

Three leading public sector banks Bank of Baroda (BOB), Punjab National

Bank (PNB) and State Bank of India (SBI) and Life Insurance Corporation of India

(LIC), the largest public financial investment institution and life insurer in India have

entered into an agreement with the Government of India as Sponsors of the UTI

Mutual Fund.

Bank of Baroda

Bank of Baroda was established in July 1908 by Maharaja - Sir Sayajirao

Gaikwad III. During the period since inception, it has always maintained its practice

of sound value based banking to emerge as one of the premier public sector Banks of

the country today. It has a track record of uninterrupted profits since inception in

1908. The financial strength of the Bank and its long tradition of efficient customer

service are drawn substantially from the extensive reach of its 2,715 strong branch

network (as of 31.03.2003) covering almost every State and Union Territory in the

Country. The Bank is also one of the few Indian Banks with a formidable presence

overseas with 38 branches. Thus, the total branch network is 2,753 as at 31.03.2003.


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Life Insurance Corporation of India

Life Insurance Corporation of India (LIC) is amongst the largest insurance

companies in the world, serving over 10 crore policy holders and managing a Fund of

over Rs 186000Crores.

Punjab National Bank

PNB is a statutory body performing banking activities in terms of Banking

Companies (Acquisition and Transfer of undertaking) Act 1970 under which the

Undertaking of the Bank was taken over by the Central Government. The main object

of the bank under the said Act is as below:-

An act to provide for the acquisition and transfer of the undertaking of certain banking

companies, having regard to their size, resources coverage and organization, in order

to further to control the heights of the economy, to meet progressively and serve

better, the needs of the development of the economy and to promote the welfare of the

people, in conformity with the policy of the State towards securing the principles laid

down in clause (b) and (c) of Article 39 of the Constitution of India and for matter

connected therewith or incidental therein.

Punjab National Bank has 4037 branches and 4 subsidiaries. The bank has a

deposit size of Rs 75813.49Crores as on 31.03.2003.

State Bank of India

The State Bank of India is the largest public sector bank in India with 9033

branches in India and 48 offices in 28 countries worldwide. In addition to this, SBI

also has 17 subsidiaries. The sponsors are not responsible or liable for any loss

resulting from the operation of all the schemes of UTI Mutual Fund beyond the

contribution of an amount of Rs 10000 made by them towards setting up of the UTI

Mutual Fund.


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Trustee

UTI Trustee Company Private Limited a company incorporated under The

Companies Act, 1956 will be the Trustee of transferred/migrated schemes are the first

and sole trustee of the Mutual Fund under the Trust Deed dated December 9, 2002

executed between the Sponsors and the Trustee Company (the Trustee).

Registered office:

UTI Tower,

Gn Block,

Bandra - Kurla Complex,

Bandra (East),

Mumbai - 400 051.

Subsidiaries

UTI Mutual Fund has 2 subsidiaries: UTI Venture Funds and UTI

International Ltd.

UTI Venture Funds

UTI Venture Funds is a private equity organization in India. The main focus

area of UTI Venture Funds is growth capital. Many of the Indian entrepreneurs have

benefited from their dealings with UTI Venture Funds.

UTI International Ltd

UTI International Ltd. has significant presence in international locations like

London, Dubai and Bahrain. UTI has plans to further develop its offshore mutual

funds unit.


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Awards

Some of the important awards won by UTI Mutual Fund have been listed below.

Lipper Fund Awards- 2008

ICRA Mutual Funds Award- 2007

Several ICRA 5 Star and 7 Star Awards

Golden peacock award 2008

Work culture

We believe in providing an environment that encourages employees to achieve

and full fill personal goals and that of the company. When the combined force of

both, the employees and the company flow in one direction, there is ample amount of

possibilities, opportunities and growth.

The work culture at UTI Mutual Fund is simple work is priority and the rest

follows. Our relationship with our employees works both ways, they give their best

and we give them the best, we strike the right balance at work.

Careers

UTI AMC, a pioneer in the mutual fund industry is executing an ambitious

plan to expand its marketing activities in India.

To realize these plans, the Company is now looking for energetic, self-paced

professionals to support our efforts in empowering people.

At UTI AMC, we are committed to provide a work environment where our

employees take pride in what they do. We provide a nurturing environment that gives

ample scope to grow professionally and personally. If you have the passion to see

beyond the obvious, we have a place for you. We are seeking passionate professionals

to be a part of our team.


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Employee Benefits

Competitive salaries

Comfortable work environment

Career opportunities

Insurance benefits

Recreational amenities

Present scenario

The country's oldest fund house, UTI Asset Management Company, is likely

to offload 26 per cent stake to a strategic partner in the next three months. According

to sources, Japan-based Shinsei, with which the fund house has tie-up with regard to

global fund management, is being actively considered to be the strategic partner.

Other US and European players, including the second largest fund house in the

US America Vanguard Mutual Fund, have also shown interest in picking up strategic

stake in the mutual fund, which has seen growth in its asset under management evenwhen the sector is facing redemption pressure. Last month, UTI Mutual Fund replaced

ICICI Prudential for the third spot by witnessing increase in asset under management

at a time when assets of the industry shrunk by seven per cent. It has thus increased its

market share to 9.54 per cent against 8.86 per cent in October. The market share of

the fund house is expected to cross double-digit in December as it has raised Rs 300

crore from the New Fund Offer -- UTI Wealth Builder Fund.

According to market analysts, even in economic slowdown it could command

good valuations because of robust fundamentals and strong pan-India presence. UTI

Mutual Fund is promoted by four sponsors -- State Bank of India, Punjab National

Bank, Bank of Baroda and Life Insurance Corporation -- holding 25 per cent each.

The sponsors would divest a portion of their stake that would go to the strategic

partner. The strategic partner is expected to add value to the business and strengthen

distribution network and help upgrade technology.
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UTI Mutual Funds proposed initial public offer (IPO) is likely to be priced

between Rs 850 and Rs 1,050, sources said. The IPO is likely to come out in the

second week of January. The 11 investment banking firms, which are in the race to

manage the first public offer by an India mutual fund, have valued the assetmanagement company (AMC) between Rs 5,500 crore and Rs 9,000 crore. At Rs

5500crore, the per share value would be Rs 850 and at Rs 9,000 crore, it would have a

per share value of Rs 1,200.

The IPO would offer a 5% discount to retail investors, sources said. The

valuation at Rs 1,200 per share reflects what in industry circles is called scarcity

value, which derives from the fund houses status as the first mutual fund to be hitting

the bourses.

But the thinking within the AMC is not to go for the highest valuation as far as retail

investors are concerned, and hence, the upper band is likely to be fixed at Rs 1,050.

According to sources, of the 11 investment bankers in the fray to manage the offer,

the dart may ultimately fall on one of the four - Lehman Brothers, Enam Securities,

Citibank and JM Financial. The AMC has already decided to go for a 20% pre-IPO

placement through the reverse auction route.


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UTI Mutual Fund Schemes

UTI Mutual Fund offers a number of useful schemes to its customers. Some of the

popular products launched by the mutual fund organization have been listed below.

UTI Asset Fund

UTI Index Funds

UTI Balanced Fund

UTI Mutual Funds

Open Ended

UTI Auto Sector Fund, UTI Balanced Fund, UTI Banking Sector Fund, UTI Bond

Fund, UTI Brand Value Fund, UTI Charitable & Religious Trust & Registered

Society, UTI Contra Fund,UTI Dividend Yield Fund, UTI Dynamic Equity Scheme,

UTI Equity Fund, UTI Equity Tax Savings Plan, UTI Floating Rate Fund STP,UTI

Growth and Value Fund, UTI Growth Sector Fund Services, UTI Growth Sector Fund

Software, UTI Index Select Fund, UTI India Advantage Equity Fund, UTI

Infrastructure Fund, UTI Large Cap Fund, UTI Leadership Equity Fund, UTI Liquid

Cash Plan, UTI Mahila Unit Scheme, UTI Master Index Fund, UTI Master Plus Unit

Scheme, UTI Master Value Fund, UTI Master gain Unit Scheme, UTI Master growth,

UTI Master share Unit Scheme, UTI Mid Cap Fund, UTI MIS Advantage plan, UTI

MNC Fund, UTI Money Market Fund, UTI Nifty Index Select Fund, UTI

Opportunities Fund,UTI Petro Fund,UTI PSU Fund,UTI Retirement Benefit Pension

Fund, UTI SPREAD Fund, UTI Sunder, UTI ULIP,UTI Variable Investment Scheme,UTI-Children Career Plan (Bond),UTI-G-SEC STP,UTI-G-Sec-Investment Plan,

UTI-Gilt Advantage Fund LTP,UTI-Growth Sector Fund Pharma.

Close Ended

UTI Capital Protection Oriented Scheme, UTI Long-Term Advantage Fund, UTI

MEPUS,UTI Wealth Builder Fund,
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phttp://www.indobase.com/markets/mtfi-india/uti-dynamic-equity-scheme.phphttp://www.indobase.com/markets/mtfi-india/uti-equity-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-equity-tax-savings-plan.phphttp://www.indobase.com/markets/mtfi-india/uti-floating-rate-fund-stp.phphttp://www.indobase.com/markets/mtfi-india/uti-growth-and-value-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-growth-and-value-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-growth-sector-fund-services.phphttp://www.indobase.com/markets/mtfi-india/uti-growth-sector-fund-software.phphttp://www.indobase.com/markets/mtfi-india/uti-growth-sector-fund-software.phphttp://www.indobase.com/markets/mtfi-india/uti-index-select-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-india-advantage-equity-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-infrastructure-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-infrastructure-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-large-cap-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-leadership-equity-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-liquid-cash-plan.phphttp://www.indobase.com/markets/mtfi-india/uti-liquid-cash-plan.phphttp://www.indobase.com/markets/mtfi-india/uti-mahila-unit-scheme.phphttp://www.indobase.com/markets/mtfi-india/uti-master-index-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-master-plus-unit-scheme.phphttp://www.indobase.com/markets/mtfi-india/uti-master-plus-unit-scheme.phphttp://www.indobase.com/markets/mtfi-india/uti-master-value-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-mastergain-unit-scheme.phphttp://www.indobase.com/markets/mtfi-india/uti-mastergrowth.phphttp://www.indobase.com/markets/mtfi-india/uti-mastershare-unit-scheme.phphttp://www.indobase.com/markets/mtfi-india/uti-mid-cap-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-mis-advantage-plan.phphttp://www.indobase.com/markets/mtfi-india/uti-mnc-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-mnc-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-money-market-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-nifty-index-select-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-opportunities-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-opportunities-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-petro-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-psu-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-retirement-benefit-pension-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-retirement-benefit-pension-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-spread-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-sunder.phphttp://www.indobase.com/markets/mtfi-india/uti-ulip.phphttp://www.indobase.com/markets/mtfi-india/uti-variable-investment-scheme.phphttp://www.indobase.com/markets/mtfi-india/uti-children-career-plan-bond.phphttp://www.indobase.com/markets/mtfi-india/uti-g-sec-stp.phphttp://www.indobase.com/markets/mtfi-india/uti-g-sec-investment-plan.phphttp://www.indobase.com/markets/mtfi-india/uti-gilt-advantage-fund-ltp.phphttp://www.indobase.com/markets/mtfi-india/uti-growth-sector-fund-pharma.phphttp://www.indobase.com/markets/mtfi-india/uti-capital-protection-oriented-scheme.phphttp://www.indobase.com/markets/mtfi-india/uti-long-term-advantage-fund.phphttp://www.indobase.com/markets/mtfi-india/uti-mepus.phphttp://www.indobase.com/markets/mtfi-india/uti-mepus.phphttp://www.indobase.com/markets/mtfi-india/uti-wealth-builder-fund.php


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2.1 OBJECTIVES

To find out the risk and return of three diversified funds of UTI mutual fund

during 2004-2008.

To find out the performance of the three diversified funds of UTI asset

Management Company during 2004-08.

To compare the performance of diversified fund with other funds of UTI

mutual fund during 2004-2008.

To compare the performance of diversified funds of UTI mutual fund in

relation to mutual fund industry during 2004-2008.

2.2 NEED FOR STUDY

Researchers need is to design a unique mutual fund scheme and to calculate

net asset value and assess the performance of set unique mutual fund schemes and

also to know how investment can be made in different industries through mutual

funds.

2.3 SCOPE OF THE STUDY

The historical performance of specific stocks is taken as a benchmark for

investment. The corpus fund for an amount of 500crores is taken as the amount to be

invested in IT, banking, and infrastructure. The total corpus fund is invested in these

sectors of hypothetically. Taking historical prices of these stocks, the performance of

the fund is calculated based up on the net asset value of the investment. The historical

data of the specific stocks is used for analysis. The prevailing market prices of these

specific stocks listed in the national stock exchange are considered for evaluating the

performance of these specific stocks is not included in the scope of the study. The

scope of the study is confined to the performance of these specific securities in

comparisons to the prevailing market conditions. The market being a major factor

affecting the fund performance, the market conditions play a critical role contributing

to the performance of the fund. The scope of study is limited to the performance of

the hypothetical fund in the existing market conditions.


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2.4 METHODOLOGY

The Sharpe Ratio Definition

Most people with a financial background can quickly comprehend how the

Sharpe ratio is calculated and what it represents. The ratio describes how much excess

return you are receiving for the extra volatility that you endure for holding a riskier

asset. Remember, you always need to be properly compensated for the additional risk

you take for not holding a risk-free asset.

The following formula will give you a better understanding of how this ratio works:

Return

The returns measured can be of any frequency (i.e. daily, weekly, monthly or

annually), as long as they are normally distributed, as the returns can always beannualized. Herein lies the underlying weakness of the ratio - not all asset returns are

normally distributed.

Abnormalities like kurtosis, fatter tails and higher peaks, orskewnesson the

distribution can be a problematic for the ratio, as standard deviation doesn't have the

same effectiveness when these problems exist. Sometimes it can be downright

dangerous to use this formula when returns are not normally distributed.
http://www.investopedia.com/terms/r/return.asphttp://www.investopedia.com/terms/v/volatility.asphttp://www.investopedia.com/terms/r/riskfreeasset.asphttp://www.investopedia.com/terms/r/riskfreeasset.asphttp://www.investopedia.com/terms/k/kurtosis.asphttp://www.investopedia.com/terms/t/tailrisk.asphttp://www.investopedia.com/terms/s/skewness.asphttp://www.investopedia.com/terms/s/skewness.asphttp://www.investopedia.com/terms/r/return.asphttp://www.investopedia.com/terms/v/volatility.asphttp://www.investopedia.com/terms/r/riskfreeasset.asphttp://www.investopedia.com/terms/k/kurtosis.asphttp://www.investopedia.com/terms/t/tailrisk.asphttp://www.investopedia.com/terms/s/skewness.asp


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Risk-Free Rate of Return

The risk-free rate of return is used to see if you are being properly

compensated for the additional risk you are taking on with the risky asset.

Traditionally, the risk-free rate of return is the shortest dated government T-bill (i.e.

U.S. T-Bill). While this type of security will have the least volatility, some would

argue that the risk-free security used should match the duration of the investment it is

being compared against.

For example, equities are the longest duration asset available, so shouldn't they be

compared with the longest duration risk-free asset available - government issued

inflation-protected securities (IPS)?

Using a long-dated IPS would certainly result in a different value for the ratio,

because in a normal interest rate environment, IPS should have a higher real return

than t-bills. Sometimes that yield on IPS has been extremely high. For instance, in the

1990s, Canada's long-dated real return bonds were trading as high as 5%. That meant

that any investor purchasing these bonds would have a guaranteed inflation-adjusted

return of 5% per year for the next 30 years.

Given that global equities only returned an arithmetic average of 7.2% over

inflation for the twentieth century (according to Dimson, Marsh, and Staunton, in

their book "Triumph Of The Optimists: 101 Years Of Global Investment Returns"

(2002)), the projected excess in the example above was not much for the additional

risk of holding equities. (As an aside, the yield on Canadian IPS has come down

dramatically since then.)
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Standard Deviation

Now that we have calculated the excess return from subtracting the return of

the risky asset from the risk-free rate of return, we need to divide this by the standard

deviation of the risky asset being measured. As mentioned above, the higher the

number, the better the investment looks from a risk/return perspective.

How the returns are distributed is the Achilles heel of the Sharpe ratio. Bell

curves do not take big moves in the market into account. As Benoit Mandelbrot and

Nassim Nicholas Taleb note in their article, "How the Finance Gurus Get Risk All

Wrong", which appeared in Fortune in 2005, bell curves were adopted for

mathematical convenience, not realism.

However, unless the standard deviation is very large, leverage may not affect

the ratio. Both the numerator (return) and denominator (standard deviation) could be

doubled with no problems. Only if the standard deviation gets too high do we start to

see problems. For example, a stock that is leveraged 10 to 1 could easily see a price

drop of 10%, which would translate to a 100% drop in the original capital and an

early margin call.

Comparative analysis Definition

Item by item comparison of two or more comparable (see comparability

analysis) alternatives, processes, products, qualifications,sets ofdata,systems, etc. In

accounting, for example, changes in a financial statement's items over several

accounting periods may be presented together to detect the emerging trends in the

firm'soperations and results.
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2.5 LIMITATIONS OF THE STUDY

The following are the limitations of the study

Data is considered for only 2004-08.

Collected data is secondary data.

Only net asset values have been taken.

Different people may interpret the same analysis in different way.

Tax concept is not taken into account.

Risk free rate of return is taken as 8%.


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3.1 Calculations and interpretations

Table: 3.1

Returns ofequity fund for month ending values for the year 2004-05

Descriptive

analysis

Interpretations : For the year 2004-05, the NAV of equity fund varied between

14.61 to 21.40 with an avg of 17.82917. The average return for this period is 1.98573

and moved between -15.15 to 9.86. During this year the return started at -15.15 and is

increased to 9.86 in December month and then decreased to -2.73 in the month of

March 2005.The risk deviation is 7.36477 and the performance of the scheme during

the period is 0.259.

DATE NAVs RETURN

30TH APR 04 17.2200

31ST MAY04 14.6100 -15.1567

30TH JUNE 04 14.6900 0.5475

31ST JULY 04 15.7500 7.2157

31ST AUG 04 16.2700 3.3015

30TH SEP 04 14.4900 7.4984

31ST OCT 04 17.7300 1.3722

30TH NOV 04 19.3600 9.1934

31ST DEC 04 21.2700 9.8657

31ST JAN 05 20.3300 -4.4193

28TH FEB 05 21.4000 5.2631

31ST MAR 05 20.8300 -2.7364

NAV Returns

Minimum 14.6100 -15.1567

Maximum 21.4000 9.8657

Average 17.82917 1.98573

Stdev 2.70849 7.36477Sharpe index 0.259


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Table: 3.2

Returns of equity fund for month ending values for the year 2005-06

Descriptive analysis

NAV Returns

Minimum 20.0200 -9.041

Maximum 32.1200 11.83

Average 24.5175 3.89375

Stdev 3.791656 6.89396

Sharpe index 0.584


20.02 to 32.12 with an avg of 24.5175. The average return for this period is

3.89375and moved between -9.041 to 11.83. During this year the return started at

-2.592 in April 2005 and is increased to 11.83 in November month and then decreased

to 10.529 in the month of March 2005. The risk deviation is 6.89396 and the

performance of the scheme during the period is 0.584.

DATE NAVs RETURN

30TH APR 05 20.2900 -2.592

31ST MAY 05 22.0100 8.477

30TH JUNE 05 20.0200 -9.041

31ST JULY 05 21.3900 6.843

31ST AUG 05 22.7300 6.264

30TH SEP 05 24.4200 7.435

31ST OCT 05 22.4000 -8.271

30TH NOV 05 25.0500 11.83

31ST DEC 05 26.5200 5.868

31ST JAN 06 28.2000 6.334

28TH FEB 06 29.0600 3.04931ST MAR 06 32.1200 10.529


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Table: 3.3



NAV Returns

Minimum 24.6600 -12.282

Maximum 32.2400 7.785

Average 28.67667 -0.8365

Stdev 2.090612 6.25507

Sharpe index -0.151


24.66 to 32.24 with an avg of 28.67667. The average return for this period is -0.8365

and moved between -12.282 to 7.785. During this year the return started at -12.282 in

may 2006 and is increased to 7.785in august month and then slowly decreased to

-7.772 in the month of February 2007. The risk deviation is 6.25507and the

performance of the scheme during the period is -0.151.

DATE NAVs RETURN30TH APR 06 32.2400 0.373

31ST MAY 06 28.2800 -12.282

30TH JUNE 06 26.5200 -6.223

31ST JULY 06 24.6600 -7.013

31ST AUG 06 26.5800 7.785

30TH SEP 06 28.4800 7.148

31ST OCT 06 29.1500 2.352

30TH NOV 06 30.3100 3.979

31ST DEC 06 30.1400 -0.56

31ST JAN 07 30.8800 2.455

28TH FEB 07 28.4800 -7.772

31ST MAR 07 28.4000 -0.28


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Table: 3.4



NAV Returns

Minimum 30.300 -13.749

Maximum 44.300 12.411

Average 36.43 2.08142

Stdev 4.351037 7.71887

Sharpe index 0.186

Interpretations: For the year 2007-08, the NAV of equity fund varied between

30.300 to 44.300 with an avg of 36.43. The average return for this period is 2.08142

and moved between -13.749 to 12.411. The risk deviation is 7.71887and the


DATE NAVs RETURN30TH APR 07 30.3000 6.69

31ST MAY 07 32.2500 6.435

30TH JUNE 07 32.3600 0.341

31ST JULY 07 33.5800 3.77

31ST AUG 07 33.1300 -1.34

30TH SEP 07 36.9000 11.379

31ST OCT 07 41.4800 12.411

30TH NOV 07 41.0600 -1.012

31ST DEC 07 44.3000 7.89

31

ST

JAN 08 38.2100 -13.74929TH FEB 08 38.3900 0.471

31ST MAR 08 35.2000 -8.309


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Table: 3.5

Returns of equity fund for monthly average values for the year 2004-05


NAV Returns

Minimum 14.5430 -8.227

Maximum 21.3561 12.020

Average 18.71974 2.508727

Stdev 4.343264 6.017905

Sharpe index 0.368

Interpretations: For the year 2004-05, the average monthly NAV of equity fund

varied between 14.5430 to 21.3561 with an avg of 28.67667. The average return for

this period is 2.50872. During this year the return is fluctuating from -8.227 to 12.020

in June 2004 it decreased to -8.227 and then it has recovered very quickly.The risk

deviation is 6.01790 and the performance of the scheme during the period is 0.368.

Month NAVs RETURNAPRIL 04 16.5455

MAY 04 15.9014 -3.892

JUNE 04 14.5931 -8.227

JULY 04 14.5430 -0.343

AUG 04 15.8640 9.083

SEP 04 17.7709 12.02

OCT 04 17.7368 -0.191

NOV 04 18.6138 4.944

DEC 04 20.3143 9.135

JAN 05 30.358 0.215FEB 05 21.04 3.35

MAR 05 21.3561 1.502


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Table: 3.6



NAV Returns

Minimum 20.6990 -2.962

Maximum 30.9268 7.77

Average 24.20748 3.20092

Stdev 3.37556 3.86851

Sharpe index 0.870

Interpretations: The year 2005-06, started with negative returns the average monthly

NAV of equity fund varied between 20.6990 to 30.9268 with an avg of 24.20748. The

average return for this period is 3.20092.During this year the return is fluctuating

from -2.962 to 7.77 the most of months in this period acquired negative returns. The

risk deviation is 3.86851 and the performance of the scheme during the period is

0.870.

Month NAVs RETURN

APRIL 05 20.7235 -2.962

MAY 05 21.2945 2.755

JUNE 05 20.6990 -2.796

JULY 05 21.0866 1.872

AUG 05 22.3933 6.196

SEP 05 23.7971 6.268

OCT 05 23.3893 -1.712

NOV 05 24.1588 3.289

DEC 05 25.8936 7.18

JAN 06 27.4305 5.935FEB 06 28.6968 4.616

MAR 06 30.9268 7.77


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Table: 3.7



NAV Returns

Minimum 25.6338 -17.857

Maximum 32.6677 15.428

Average 28.73285 -0.5392

Stdev 2.620292 8.54757

Sharpe index -0.127

Interpretations: The year 2006-07, is also fluctuating in great manner the average

monthly NAV of equity fund varied between 25.6338 to 32.6677 with an avg of

28.73285. The average return for this period is -0.5392.The risk deviation is 8.54757

and the performance of the scheme during the period is -0.127.

Month NAVs RETURNAPRIL 06 32.6676 5.628

MAY 06 31.2440 -4.357

JUNE 06 25.6645 -17.857

JULY 06 25.6338 -0.119

AUG 06 25.8340 0.781

SEP 06 27.53 6.564

OCT 06 25.8715 -6.024

NOV 06 29.8631 15.428

DEC 06 31.496 5.467

JAN 07 30.611 -2.809

FEB 07 30.5721 -0.127

MAR 07 27.8066 -9.045


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Table: 3.8



NAV Returns

Minimum 29.125 -9.780

Maximum 42.524 13.037

Average 35.843 2.15492

Stdev 4.588664 6.6165

Sharpe index 0.253

Interpretations: The year 2007-08, the average monthly NAV of equity fund varied

between 29.125 to 42.524 with an average of 35.843. The average return for this

period is 6.6165. This year started with positive returns but slowly the average returns

are decreasing manner since the month of October. The risk deviation is 6.6165 and

the performance of the scheme during the period is 0.253.

Month NAVs RETURN

APRIL 07 29.125 4.741

MAY 07 31.341 7.608

JUNE 07 31.816 1.515

JULY 07 33.195 4.334

AUG 07 32.141 -3.175

SEP 07 34.540 7.463

OCT 07 39.043 13.037

NOV 07 40.815 4.538

DEC 07 42.524 4.187

JAN 08 42.319 -0.482

FEB 08 38.180 -9.78

MAR 08 35.077 -8.127


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Table: 3.9

Returns of master share unit scheme for month ending values for the year 2004-05


NAV Returns

Minimum 16.9500 -14.133

Maximum 21.1000 10.149

Average 18.88667 0.29564

Stdev 1.506485 7.19633

Sharpe index 0.029

Interpretations: For the year 2006-07, the NAV of master share unit scheme varied

between 16.950 to 21.100 with an avg of 18.88667. The average return for this period

is 0.29564 and moved betwee-14.133 to 10.149. The risk deviation is 7.19633 and the


DATE NAVs RETURN

30TH APRIL 04 19.7400

31ST MAY 04 16.9500 -14.133

30TH JUNE 04 17.2200 1.592

31ST JULY 04 18.1000 5.11

31ST AUG 04 18.4400 1.878

30TH SEP 04 17.3000 -6.182

31ST OCT 04 17.4400 0.809

30TH NOV 04 19.2100 10.149

31ST DEC 04 21.1000 9.838

31ST JAN 05 20.3400 -3.60128TH FEB 05 20.9400 2.949

31ST MAR 05 19.8600 -5.157


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Table: 3.10



NAV Returns

Minimum 19.1800 -17.475

Maximum 28.1900 10.611

Average 23.39083 3.23958

Stdev 2.594597 7.54093

Sharpe index 0.496


between 19.18 to 28.19 with an avg of 23.39083. The average return for this period is

3.23958 and moved between -17.475 to 10.611. During this year the return average

return decreased drastically to-17.475 in the month of October 2005 and is increased

to 10.611 in November 2005.the risk for this period is ranging up to 7.54093and the

performance index is 0.496.

Table: 3.11

DATE NAVs RETURN

30TH APRIL 05 19.1800 -3.423

31ST MAY 05 20.7200 8.029

30TH JUNE 05 21.2400 2.509

31ST JULY 05 22.6200 6.497

31ST AUG 05 23.6200 4.427

30TH SEP 05 25.3500 7.324

31ST OCT 05 20.9200 -17.475

30TH NOV 05 23.1400 10.611

31ST DEC 05 24.6200 4.847

31ST

JAN 06 25.3400 4.45128TH FEB 06 25.7500 1.617

31ST MAR 06 28.1900 9.475


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NAV Returns

Minimum 24.0900 -12.354

Maximum 29.2900 9.288

Average 26.82417 -0.3503

Stdev 1.705294 5.94606

Sharpe index -0.101



-0.3503 and moved between -12.354 to 9.288. The risk for the period is 5.94606 and

the performance index is -0.101.

Table: 3.12


DATE NAVs RETURN

30TH APRIL 06 28.3300 0.769

31ST MAY 06 24.8300 -12.354

30TH JUNE 06 24.0900 -2.98

31ST JULY 06 24.3300 0.996

31ST AUG 06 26.5900 9.288

30TH SEP 06 27.8900 4.889

31ST OCT 06 29.2900 5.019

30TH NOV 06 27.7900 -5.121

31ST DEC 06 27.7400 -0.179

31ST JAN 07 28.3900 2.34328TH FEB 07 26.2000 -7.713

31ST MAR 07 26.4200 0.839


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NAV Returns

Minimum 28.2100 -14.738Maximum 43.1000 20.863

Average 34.435 0.638

Stdev 4.67649 10.768

Sharpe index -0.0006



0.638 and moved between -14.738 to 20.863. The risk deviation for the period is

10.768 and the performance index is -0.0006.

DATE NAVs RETURN30TH APRIL 07 28.2100 6.775

31ST MAY 07 30.0400 -6.487

30TH JUNE 07 30.7100 2.23

31ST JULY 07 32.5200 5.893

31ST AUG 07 31.9100 -1.875

30TH SEP 07 35.6600 11.751

31ST OCT 07 43.1000 20.863

30TH NOV 07 38.6400 -10.348

31ST DEC 07 41.3200 6.935

31ST

JAN 08 35.2300 -14.73829TH FEB 08 35.3700 0.397

31ST MAR 08 30.5100 -13.74


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Table: 3.13

Returns of master share unit scheme for monthly average values for the year 2004-05


NAV Returns

Minimum 16.588 -11.908

Maximum 20.6890 10.637

Average 18.78879 0.99755

Stdev 1.36751 6.68164

Sharpe index 0.124

Interpretations: For the year 2004-05, the monthly average NAV of master share

unit scheme varied between 16.588 to 20.689 with an avg of 18.7887. The average

return for the period is moved between -11.908 to 10.637. The risk deviation for the

period is 6.68164 and the performance index is -0.124.

Month NAVs RETURNAPRIL 04 18.9685

MAY 04 18.3104 -3.469

JUNE 04 17.0027 -7.141

JULY 04 17.6827 3.999

AUG 04 18.1809 2.817

SEP 04 18.8305 3.572

OCT 04 16.588 -11.908

NOV 04 18.3526 10.637

DEC 04 20.1547 9.819

JAN 05 20.105 -0.246FEB 05 20.6005 2.464

MAR 05 20.6890 0.429


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Table: 3.14



NAV Returns

Minimum 19.751 -4.862

Maximum 27.0618 6.312

Average 23.14922 2.3523

Stdev 2.210042 4.03782Sharpe index 0.562




period is 4.03782 and the performance index is 0.562.

Month NAVs RETURNAPRIL 05 19.751 -4.533

MAY 05 20.1409 1.974

JUNE 05 20.9818 4.175

JULY 05 21.9133 4.439

AUG 05 23.2965 6.312

SEP 05 24.6733 5.909

OCT 05 23.4736 -4.862

NOV 05 22.4172 -4.5

DEC 05 23.8022 6.178

JAN 06 24.778 4.099

FEB 06 25.501 2.917

MAR 06 27.0618 6.12


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Table: 3.15

Returns of master share unit scheme for average monthly values for the year 2006-07


NAV Returns

Minimum 22.8854 -17.050

Maximum 28.4673 12.697

Average 26.82833 0.1357

Stdev 1.776616 7.2846

Sharpe index 0.029






MAY 06 27.5895 -3.08

JUNE 06 22.8854 -17.05

JULY 06 23.9471 4.639

AUG 06 26.9877 12.697

SEP 06 27.1995 0.784

OCT 06 28.4673 4.661

NOV 06 28.1709 -1.041

DEC 06 27.359 -2.882

JAN 07 28.1185 2.776FEB 07 26.9215 -4.2569

MAR 07 25.8271 -4.0651


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Table: 3.16



NAV Returns

Minimum 27.1235 -11.806

Maximum 39.9778 18.47

Average 34.08043 1.85658

Stdev 4.72558 8.08511

Sharpe index 0.219






MAY 07 29.2604 7.878

JUNE 07 29.7747 1.757

JULY 07 31.8171 6.859

AUG 07 30.9322 -2.781

SEP 07 33.234 7.441

OCT 07 39.3790 18.47

NOV 07 39.8715 1.25

DEC 07 39.9778 0.266

JAN 08 38.1888 -4.474FEB 08 38.2861 -7.6

MAR 08 31.12 -11.806


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Table: 3.17

Returns of master plus unit scheme for month ending values for the year 2004-05


NAV Returns

Minimum 31.0500 -5.125

Maximum 33.7600 8.727

Average 32.476 0.80325

Stdev 1.157078 6.84793

Sharpe index 0.105

Interpretations: For the year 2004-05, the NAV of master plus unit scheme varied

between 31.05 to 33.76 with an avg of 32.476. This scheme introduced in this year so

the return for this period is 0.80325 and moved between -5.125 to 8.727. The risk is

deviating at 6.84793 and the performance index is 0.105.

DATE NAVs RETURN

30TH APRIL 04

31ST MAY 04

30TH JUNE 04

31ST JULY 04

31ST AUG 04

30TH SEP 04

31ST OCT 04

30TH NOV 04 31.0500

31ST DEC 04 33.7600 8.727

31ST JAN 05 32.1700 -4.70928TH FEB 05 33.5600 4.32

31ST MAR 05 31.8400 -5.125


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Table: 3.18



NAV Returns

Minimum 30.6500 -8.042

Maximum 50.2100 14.739

Average 38.6625 4.03142

Stdev 5.263825 6.02397

Sharpe index 0.655

Interpretations: For the year 2005-06, the month ending NAV of master plus unit

scheme is varied between 30.65 to 50.21 with an avg of 38.6625. The average return

for this period is 4.03142 and moved between -8.042 to 14.739. During this year most

of the period is varying in negative returns. The risk deviation is 6.02397and the

performance index is 0.655.

Table: 3.19

DATE NAVs RETURN30TH APRIL 05 30.6500 -3.737

31ST MAY 05 33.1200 8.058

30TH JUNE 05 33.8300 2.143

31ST JULY 05 36.3500 7.449

31ST AUG 05 38.4000 5.639

30TH SEP 05 40.9100 6.536

31ST OCT 05 37.6200 -8.042

30TH NOV 05 37.2200 -1.063

31ST DEC 05 39.6800 6.609

31ST

JAN 06 42.2000 6.3528TH FEB 06 43.7600 3.696

31ST MAR 06 50.2100 14.739


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NAV Returns

Minimum 44.0100 -13.420

Maximum 58.9500 9.656

Average 49.84833 0.1298

Stdev 4.522815 8.06866

Sharpe index 0.026

Interpretations: For the year 2005-06, the month ending NAV of master plus unit

scheme is varied between 44.01to 58.95 with an avg of 49.848. The average return

for this period is 0.1298 and moved between -13.420 to 9.656. The risk deviation is

8.06866 the performance index is 0.026.

DATE NAVs RETURN

30TH APRIL 06 52.5300 4.62

31ST MAY 06 45.4800 -13.42

30TH JUNE 06 44.0400 -3.166

31ST JULY 06 44.0100 -0.068

31ST AUG 06 48.2600 9.656

30TH SEP 06 52.0900 7.936

31ST OCT 06 54.6100 4.837

30TH NOV 06 58.9500 7.947

31ST DEC 06 51.1400 -13.248

31ST JAN 07 52.0900 1.857

28TH FEB 07 47.3500 -9.099

31ST MAR 07 47.6300 0.591


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Table: 3.20



NAV Returns

Minimum 50.3600 -13.743

Maximum 75.3800 15.550

Average 61.50333 1.65142

Stdev 8.233671 8.72518

Sharpe index 0.180

Interpretations: For the year 2007-08, the month ending NAV of masterplus unit

scheme varied between 50.36 to 75.38 with an avg of 61.50333. The average return

for this period is 1.65142 and moved between -13.743to 15.550.The risk for the year

is 8.72518and the performance index is 0.180.

DATE NAVs RETURN

30TH APRIL 07 50.3600 5.731

31ST MAY 07 53.4600 6.155

30TH JUNE 07 54.2200 1.421

31ST JULY 07 57.1500 5.403

31ST AUG 07 56.4900 -1.154

30TH SEP 07 62.5700 10.762

31ST OCT 07 72.3000 15.55

30TH NOV 07 71.2200 -1.493

31ST DEC 07 75.3800 5.841

31ST JAN 08 65.0200 -13.74329TH FEB 08 64.2800 -1.138

31ST MAR 08 55.5900 -13.518


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Table: 3.21

Returns of master plus unit scheme for average values for the year 2004-05


NAV Returns

Minimum 29.857 -1.361

Maximum 33.070 8.001

Average 31.984 2.649Stdev 1.295901 4.10863

Sharpe index 0.625

Month NAVs RETURNAPRIL 04

MAY 04

JUNE 04

JULY 04

AUG 04

SEP 04

OCT 04

NOV 04 29.857

DEC 04 32.246 8.001

JAN 05 31.807 -1.361FEB 05 32.94 3.562

MAR 05 33.070 0.394


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unit scheme varied between 29.857 to 33.07 with an average of 31.984. The average




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53

Table: 3.22



NAV Returns

Minimum 31.634 -4.342

Maximum 47.761 11.544

Average 31.984 3.20317Stdev 1.295901 4.55535

Sharpe index 0.685

Month NAVs RETURN

APRIL 05 31.634 -4.342

MAY 05 32.162 1.669

JUNE 05 33.573 4.387

JULY 05 35.202 4.852

AUG 05 37.635 6.911

SEP 05 39.821 5.808

OCT 05 39.37 -1.132

NOV 05 40.162 2.011

DEC 05 38.715 -3.602

JAN 06 40.914 5.679FEB 06 42.818 4.653

MAR 06 47.761 11.544


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55

Table: 3.23



NAV Returns

Minimum 41.589 -18.122

Maximum 57.037 9.457

Average 49.89342 0.14525Stdev 4.416769 8.57582

Sharpe index 0.007


MAY 06 50.794 -2.838

JUNE 06 41.589 -18.122

JULY 06 43.427 4.419

AUG 06 46.630 7.372

SEP 06 50.293 7.855

OCT 06 53.004 5.39

NOV 06 57.037 7.608

DEC 06 53.010 -7.06

JAN 07 51.770 -2.339FEB 07 51.91 0.27

MAR 07 46.979 -10.269


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57

Table: 3.24



NAV Returns

Minimum 48.559 -12.318

Maximum 72.715 14.402

Average 60.56708 1.90508Stdev 8.564181 7.68151

Sharpe index 0.237


MAY 07 51.596 6.254

JUNE 07 52.863 2.455

JULY 07 56.517 6.912

AUG 07 54.421 -3.708

SEP 07 58.727 7.912

OCT 07 67.185 14.402

NOV 07 71.392 6.261

DEC 07 7

Documents

project work - sk