Comparative analysis of five mutual funds companies

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A
PROJECT REPORT ON
“COMPARITIVE ANALYSIS OF TOP 100 MUTUAL FUND
&
OPPORTUNITIES FUND AT UTI MUTUAL FUND”
UTI ASSET MANAGEMENT COMPANY LIMITED
By
B.SRUJAN KUMAR
B618
Company Guide Faculty guide
Mr. Sudhir Hotkar, Mr. Lohithkumar
Senior Manager Assistant Professor
SIVA SIVANI INSTITUTE OF MANAGEMENT
Secunderabad
(2012-14)

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Acknowledgement
I would take this opportunity to express my sincere gratitude to all the persons for their
valuable assistance and continuous support during my project.
I am grateful to my faculty guide, Mr. Lohithkumar Asst. Professor, Finance, Siva Sivani
Institute of Management for his guidance and supporting me in doing the project. His inputs and
suggestions have played a crucial role at every stage of the project .His continuous guidance
throughout my project helped me to complete this project in a timely and systematic
manner.
I am grateful to Mr. Sudhir Hotkar, Senior Manager, (UTI Mutual Funds, Warangal branch) for
his guidance and support during preparation of the project. His inputs and suggestions have
played a crucial role at every stage in the preparation of the project.
Finally, I would like to thanks all the staff members at UTI AMC who provided their
valuable inputs throughout the duration of my project, which really helped in successful
completion of my project report.

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Declaration
I hereby declare that this project report titled “Comparative Analysis Of Top 100 Mutual
Fund & Opportunities Fund at UTI Mutual Funds” is an original work, done by me during
the academic year 2012-13 under the guidance of my faculty guide Mr. Lohithkumar, Assistant
professor of Siva Sivani Institute of Management and my company guide MR. Sudhir Hotkar
Senior Manager at UTI Asset Management company limited for the partial fulfillment of the
requirements for the award of the POST GRADUATE DIPLOMA IN MANAGEMENT
(BIFAAS).
Place: Secunderabad
Date: B.SRUJAN KUMAR

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Index
Chapter Contents Page. No
Chapter 1 Introduction 5-13
Chapter 2 Industry Profile 14-17
Chapter 3 Company Profile 18-27
Chapter 4 Research Methodology 28-31
Chapter 5 Data Analysis & Interpretation 32-47
Chapter 6 Findings & Suggestions 48-49
Chapter 7 Conclusion 50-52

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Chapter-1
Introduction

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Introduction:-
A mutual fund is 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 investors invest in a mutual fund, they are buying units or portions of the mutual fund and
thus on investing becomes a 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.
Mutual funds are set up to buy many stocks. Beyond that, investors can diversify even more
by purchasing different kinds of stocks which helps to spreading out investors’ money across
different types of investments and hence, reduces risk tremendously up to certain extent.
It could take you weeks to buy all these investments, but if you purchased a few mutual funds
you could be done in a few hours because mutual funds automatically diversify in a
predetermined category of investments.
A Mutual is a pool of money, which is collected from many investors and is invested by an asset
management company to achieve some objective of the investors. Thus, a mutual fund is a
collective investment process. An Asset management Company(AMC) collects many investor
money. It invest this in various securities to generate return for the investor. Investor get returns
after deducting the related expenses. If there is any loss, it would be borne by the investors. An
Asset management company manages the pool of money; therefore, it is also an “indirect form of
investment” for investors.

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It is necessary that every pool of investor should have one common investment objective because
the investment objective decides where the investment is to be made. If the common objective is
to take risk for higher returns in medium to long term ,then investment will be made in equity. If
the objective is lower returns in medium to long term” then investment will be made in equity. If
the objective is lower return with safety of principal then investment is done in debt instrument.
The pool of money witch is contributed mutually by all investors are the benefits will be shared
mutually by all investor is the mutual fund. 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.
POOL
OF
MONEY
100 CR
A
B
C
D
E
INVESTO
R A
INVEST
5000
INVESTOR
B INVEST
5000
INVESTOR
C INVEST
6000
INVESTOR
D INVEST
5000
INVESTOR
E INVEST
5000

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Mutual Fund Operation Chart
Distinguishing Characteristics Of Mutual Fund:
The traditional, distinguishing characteristics of the mutual fund may include the following:
1) Investors purchase mutual fund shares from the fund itself (or through a broker for the fund)
instead of from other investors on a secondary market
2) The price that investors pay for mutual fund shares is the fund's per share net asset value
(NAV) plus any shareholder fees that the fund imposes at the time of purchase (such as sales
loads).
3) Mutual fund shares are "redeemable," meaning investors can sell their shares back to the fund
(or to a broker acting for the fund).
4) Mutual funds generally create and sell new shares to accommodate new investors. In other
words, they sell their shares on a continuous basis, although some funds stop selling when,
for example, they become too large.
Investor
Securities
Returns Fund
manager

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5) The investment portfolios of mutual funds typically are managed by separate entities known
as "investment advisers" that are registered with the SEBI.
Importance of Mutual Fund:
Small investors face a lot of problems in the share market, limited resources, lack of professional
advice, lack of information etc. Mutual funds have come as a much needed help to these
investors. It is a special type of institutional device or an investment vehicle through which the
investors pool their savings which are to be invested under the guidance of a team of experts in
wide variety of portfolios of Corporate securities in such a way, so as to minimize risk, while
ensuring safety and steady return on investment. It forms an important part of the capital market,
providing the benefits of a diversified portfolio and expert fund management to a large number,
particularly small investors. Now a days, mutual fund is gaining its popularity due to the
following reasons :
 With the emphasis on increase in domestic savings and improvement in deployment of
investment through markets, the need and scope for mutual fund operation has increased
tremendously. The basic purpose of reforms in the financial sector was to enhance the
generation of domestic resources by reducing the dependence on outside funds. This calls
for a market based institution which can tap the vast potential of domestic savings and
canalize them for profitable investments. Mutual funds are not only best suited for the
purpose but also capable of meeting this challenge.
 An ordinary investor who applies for share in a public issue of any company is not
assured of any firm allotment. But mutual funds who subscribe to the capital issue made
by companies get firm allotment of shares. Mutual fund latter sell these shares in the
same market and to the Promoters of the company at a much higher price. Hence, mutual
fund creates the investors confidence.
 The mindset of the typical Indian investor has been summed up by Mr.S.A. Dave,
Chairman of UTI, in three words; Yield, Liquidity and Security. The mutual funds, being
set up in the public sector, have given the impression of being as safe a conduit for
investment as bank deposits. Besides, the assured returns promised by them have
investors had great appeal for the typical Indian investor.

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 As mutual funds are managed by professionals, they are considered to have a better
knowledge of market behaviors. Besides, they bring a certain competence to their job.
They also maximize gains by proper selection and timing of investment.
 Another important thing is that the dividends and capital gains are reinvested
automatically in mutual funds and hence are not fritted away. The automatic reinvestment
feature of a mutual fund is a form of forced saving and can make a big difference in the
long run.
 The mutual fund operation provides a reasonable protection to investors. Besides,
presently all Schemes of mutual funds provide tax relief under Section 80 L of the
Income Tax Act and in addition, some schemes provide tax relief under Section 88 of the
Income Tax Act lead to the growth of importance of mutual fund in the minds of the
investors.
 As mutual funds creates awareness among urban and rural middle class people about the
benefits of investment in capital market, through profitable and safe avenues, mutual fund
could be able to make up a large amount of the surplus funds available with these people.
 The mutual fund attracts foreign capital flow in the country and secure profitable
investment avenues abroad for domestic savings through the opening of off shore funds
in various foreign investors.
Advantages
It’s important to remember that features that matter to one investor may not be important for
others. Whether any particular feature is an advantage for you will depend on your unique
circumstances. For some investors, mutual funds provide an attractive investment choice because
they generally offer the following features:
1) Professional Management—Professional money managers research, select, and monitor the
performance of the securities the fund purchases.
2) Diversification—Diversification is an investing strategy that can be neatly summed up as
“Don’t put all your eggs in one basket.” Spreading your investments across a wide range of
companies and industry sectors can help lower your risk if a company or sector fails. Some
investors find it easier to achieve diversification through ownership of mutual funds rather than
through ownership of individual stocks or bonds.

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3) Affordability—Some mutual funds accommodate investors who don’t have a lot of money to
invest by setting relatively low dollar amounts for initial purchases, subsequent monthly
purchases, or both.
4) Liquidity—Mutual fund investors can readily redeem their shares at the cur-rent NAV—plus
any fees and charges assessed on redemption—at any time.
Disadvantages:-
But mutual funds also have features that some investors might view as disadvantages, such as:
 Costs despite Negative Returns—Investors must pay sales charges, annual fees, and
other expenses regardless of how the fund performs. And, depending on the timing of
their investment, investors may also have to pay taxes on any capital gains distribution
they receive—even if the fund went on to perform poorly after they bought shares
 Lack of Control—Investors typically cannot ascertain the exact make-up of a fund’s
portfolio at any given time, nor can they directly influence which securities the fund
manager buys and sells or the timing of those trades.
 Price Uncertainty—with an individual stock, you can obtain real-time (or close to real-
time) pricing information with relative ease by checking financial websites or by calling
your broker. You can also monitor how a stock’s price changes from hour to hour—or
even second to second. By contrast, with a mutual fund, the price at which you purchase
or redeem shares will typically depend on the fund’s NAV, which the fund might not
calculate until many hours after you’ve placed your order. In general, mutual funds must
calculate their NAV at least once every business day.
Types Of Mutual Fund Schemes :
The objectives of mutual funds are to provide continuous liquidity and higher yields with high
degree of safety to investors. Based on these objectives, different types of mutual fund schemes
have evolved.
1)Functional
 Open-Ended Event
 Close-Ended Scheme

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Functional Classification of Mutual Funds
1) Open-ended schemes: In case of open-ended schemes, the mutual fund continuously offers to
sell and repurchase its units at net asset value (NAV) or NAV-related prices. Unlike close-ended
schemes, open-ended ones do not have to be listed on the stock exchange and can also offer
repurchase soon after allotment. Investors can enter and exit the scheme any time during the life
of the fund. Open-ended schemes do not have a fixed corpus. The corpus fund increases or
decreases, depending on the purchase or redemption of units by investors. There is no fixed
redemption period in open-ended schemes, which can be terminated whenever the need arises.
The fund offers a redemption price at which the holder can sell units to the fund and exit.
Besides, an investor can enter the fund again by buying units from the fund at its offer price.
Such funds announce sale and repurchase prices from time-to-time. UTI’s US-64 scheme is an
example of such a fund. The key feature of open-ended funds is liquidity. They increase liquidity
of the investors as the units can be continuously bought and sold. The investors can develop their
income or saving plan due to free entry and exit frame of funds. Open-ended schemes usually
come as a family of schemes which enable the investors to switch over from one scheme to
another of same family.
2) Close-ended schemes: Close-ended schemes have a fixed corpus and a stipulated maturity
period ranging between 2 to 5 years. Investors can invest in the scheme when it is launched. The
scheme remains open for a period not exceeding 45 days. Investors in close-ended schemes can
buy units only from the market, once initial subscriptions are over and thereafter the units are
listed on the stock exchanges where they are bought and sold. The fund has no interaction with
investors till redemption except for paying dividend/bonus. In order to provide an alternate exit
route to the investors, some close-ended funds give an option of selling back the units to the
mutual fund through periodic repurchase at NAV related prices. If an investor sells units directly
to the fund, he cannot enter the fund again, as units bought back by the fund cannot be reissued.
The close-ended scheme can be converted into an open-ended one. The units can be rolled over
by the passing of a resolution by a majority of the unit--holders.
3) Interval scheme: Interval scheme combines the features of open-ended and close-ended
schemes. They are open for sale or redemption during predetermined intervals at NAV related
prices.

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Portfolio Classification:-
Here, classification is on the basis of nature and types of securities and objective of investment.
1) Income funds: The aim of income funds is to provide safety of investments and regular
income to investors. Such schemes invest predominantly in income-bearing instruments like
bonds, debentures, government securities, and commercial paper. The return as well as the risk is
lower in income funds as compared to growth funds.
2) Growth funds: The main objective of growth funds is capital appreciation over the medium-
to-long- term. They invest most of the corpus in equity shares with significant growth potential
and they offer higher return to investors in the long-term. They assume the risks associated with
equity investments. There is no guarantee or assurance of returns. These schemes are usually
close-ended and listed on stock exchanges.
3) Balanced funds: The aim of balanced scheme is to provide both capital appreciation and
regular income. They divide their investment between equity shares and fixed nice bearing
instruments in such a proportion that, the portfolio is balanced. The portfolio of such funds
usually comprises of companies with good profit and dividend track records. Their exposure to
risk is moderate and they offer a reasonable rate of return.
4) Money market mutual funds: They specialize in investing in short-term money market
instruments like treasury bills, and certificate of deposits. The objective of such funds is high
liquidity with low rate of return.
Asset Management Company (AMC):-
AMC is involved in the daily administration and also acts as investment advisor for the fund. A
sponsor promotes an asset management company, which usually is a reputed corporate entity
with sound record of profits. An AMC typically has three departments
 Fund Management
 Sales & Marketing
 Operations & Accounting

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Chapter-2
Industry Profile

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History of the Indian Mutual Fund Industry:-
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the
initiative of the Government of India and Reserve Bank and started its operations in 1964 with
the issue of units under the scheme US-64. The history of mutual funds in India can be broadly
divided into four distinct phases: -
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.6,700
crores of assets under management.
Second Phase- 1987-1993 (Entry of Public Sector Funds):-
1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and
Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC).
SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by
Canbank 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
established its mutual fund in June 1989 while GIC had set up its mutual fund in December
1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47,004
crores.
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
LTI 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
Fourth Phase - since February 2003:-
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated
into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets
under management of Rs.29,835 crores as at the end of January 2003, representing broadly., the
assets of US 64 scheme, assured return and certain other schemes. 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.

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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. 76,000 crores of assets under
management 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
October 31, 2003, there were 31 funds, which manage assets of Rs. 126726 crores under 386
schemes.
The graph indicates the growth of assets over the years
Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of the Unit
Trust of India effective from February 2003. The Assets under 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.
MUTUAL FUND COMPANIES IN INDIA
1. Joint Ventures –predominantly Indians
a. SBI Funds Management Private Ltd.
b. Birla Sun Life Asset Management Co Ltd.

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c. DSP Black Rock Fund Management Ltd.
d. HDFC Asset Management Co
e. Prudential ICICI Asset Management Co.Ltd
f. Benchmark Asset Management Co Private. Ltd
g. Cholamandalam Asset Management Co.Ltd
h. Credit Capital Asset Management CO.Ltd
i. Kotak Mahindra Asset Management Co. Ltd
j. Reliance Capital Asset Management Ltd
k. Tata Asset Management Ltd
2. Others
a. BOB Asset Management Co. Ltd.
b. Canbank investment Management Services Ltd.
c. UTI Asset Management Co Private Ltd.
3. Institutions
a. Jeevan Bima Sahayog Asset Management Co Ltd.
4. Joint Ventures –Predominantly Foreign :
a. ABN AMRO Asset Management (India)Ltd
b. Deutsche Asset Management (India) Private Ltd
c. Fidelity Fund Management Private Ltd
d. Franklin Templeton Asset Management (India) Private Ltd
e. HSBC Asset Management (India) private Ltd
f. ING Investment Management private Ltd
g. Morgan Stanley Investment Management private Ltd
h. Standard Chartered Asset Management Co private .Ltd

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Chapter-3
Company Profile

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UTI Asset Management Co. (P) Ltd
UTI Mutual Fund:-
UTI AMC is a company incorporated under companies act 1956.In UTI AMC the investment
agreement is executed between UTI Trustee company Ltd and UTI AMC on December 9 2002
UTI AMC was registered by SEBI to act as Asset Management Company for UTI Mutual Fund
vide its letter of January 2003.
The paid up capital of UTI AMC has been subscribed equally by four sponsors: State Bank of
India, Life Insurance Corporation of India, Bank of Baroda and Punjab National Bank.
UTIAMC, apart from managing the schemes of UTI Mutual Fund, also manages the schemes
transferred/migrated from the erstwhile Unit Trust of India, in accordance with the provisions of
the Investment Management Agreement, the Trust Deed, and the SEBI (Mutual Funds)
Regulations.
History:-
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. 6, 700 crore of assets under management. Despite being the
trendsetter in the segment, the UTI mutual fund could not sustain the initial tempo and was on
the verge of a collapse in 2001, before the government bailed it
The fund's sponsors are public sector financial giants like Life Insurance Corporation, SBI, Bank
of Baroda and Punjab National Bank. The sponsors hold equal stakes in the asset management
company, UTI Asset Management Company Private Limited. UTI Mutual Fund remains the
largest fund in the country with assets of over Rs.35, 028 crore under management.
UTI was divided into two parts, UTI Mutual Fund (UTI MF) and a specified undertaking of UTI
or UTI-I. UTI MF was brought under SEBI regulations while UTI-I was kept under direct
government control since its schemes offered guaranteed returns.

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The three strong pillars of UTI MF are:-
1. Fund Management
2. Investor Services
3. Large Distribution Reach
Vision:-
To be the most Preferred Mutual Fund.
Mission:-
Our mission is to make UTI Mutual Fund:
 The most trusted brand, admired by all stakeholders
 The largest and most efficient money manager with global presence
 The best in class customer service provider
 The most preferred employer
 The most innovative and best wealth creator
 A socially responsible organization known for best corporate governance
Fund Management
UTI MF has a highly qualified and professional Management Team to care of the unit holder’s
investments. An equally strong in-house research department to support the fund Management
team in their decision making process. UTI MF has the distinction of being the only mutual fund
in India with a full macroeconomic research cell. The integration of world-class practices in day-
to-day working and up gradation thereof on a continuous base allows UTI MF to meet the
challenges existing and emerging and maintain its leadership position. Some of the notable
practices are:
 Higher empowerment the Fund Manager for greater efficiency and accountability.
 Creation of a Risk Management Department to ensure better management of risks
associated with fund management so as to eliminate future NAV’s.

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 Vigorous and regular investment monitoring to enable better health of the future
employed and step-up/ensure recovery of existing NPA’s.
 Benchmarking of the fund with suitable and well-accepted indices to ensure objective
assessment of the fund’s performance.
 Greater transparency by monthly disclosure of portfolios daily NAVs and well
documented monthly fact sheet to provide complete information on scheme
performance.
 Reduced sales and repurchase load for various schemes thereby enhancing the returns for
the investors.
 With several of UTI MF’s schemes attaining critical size the expense ratios have been
brought down for the benefit of investors.
In-house Equity and Debt research capabilities
UTI MF is the only mutual fund in India to have a 12 member strong research team to track,
research and evaluate macroeconomic indicators, capital markets, financial sector and mutual
fund. The In-house research team has gained expertise in research of equities as well as debt.
Portfolio Management Services
UTI AMC has started a new division to offer wealth management solutions to its clients. The
division, operating under the brand name of Axel, shall offer the entire suit of wealth
management solutions to private clients like HNI’s, trusts, corporates and NRI’s etc. to begin
with Axel shall offering discretionary portfolio management services to these clients under the
following 2 schemes.
1. Axel FF: under this scheme, a fixed management fee of upon 2.50% per annum of the
NAV of the client’s portfolio shall be charged. Additional applicable taxes shall be
charged on the amount of fee.
2. Axel VF: under this scheme, management fees shall be charged as combination of fixed
and variable basis. Fixed fees shall be up to 1.50% per annum of the NAV of the client’s
portfolio and variable fees shall be up to 10% of the positive annual portfolio returns.
Additional applicable taxes shall be charged on the amount of fees.

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New Initiatives Of Uti Mf
UTI MF has approached Government of India to seek approval from Pension Regulation and
Development Authority of India for offering pension products and through its subsidiary
UTITSL (UTI Technology Services Ltd) it has applied for becoming centralized record keeping
Agency (CRA) for all Indian pensioners.
Diverse Investor Base:
 Nearly 65% of the investor’s accounts of the Indian MF industry is with UTI MF which
endorses the fact that the country’s largest MF enjoys tremendous investors “trust &
Confidence”.
 UTI MF is proud to be associated with various esteemed companies/organization as our
investors. These investors are the largest Banks of the country, co-operative banks, largest
software companies, largest MNC’s, charitable &religious trusts, provident funds, army &
defense forces, stock exchange, port trusts, trade association and leading lights of the society
in additional to most of the common people.
 Almost each of the top 1500 investors/savers of the Indian economy have investment in one
of the funds of UTI Mutual Funds.
 Largest Mutual Fund Houses in India with total assets of Rs30000 crores and more under
management.
 Able Fund Management team, with a well-diversified portfolio under all Schemes.
 53 demotic schemes and 4 offshore schemes to clear to the whole gamut of your investment
needs.
 The fund house with the largest number of retail investors. More than 6 million investors
have invested in various funds.
 Distribution network of 63 financial centers ,343 chief
 Representative/chief agents and over 18,000 AMFI certified financial advisors.
 Nation –wide network of satellite connecting all UFC’s and branches.
 Central processing center for attaining better service standard at lower cost.
 Currently UTI AMC has four offshore funds namely
1. India Fund

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2. Indian IT Fund
3. Indian Infrastructure Fund
4. Indian Pharma Fund
ORGANISATION STRUCTURE OF A MUTUAL FUND INDUSTRY
KEY POINTS
 Mutual funds in India have a 3-tier structure of Sponsor-Trustee-AMC
 Sponsor creates the AMC and the trustee company appoints the boards of both these
companies with SEBI approval
 Sponsor is the promoter of the fund.
 The Mutual fund is formed as a trust in India and not as a company.
 The sponsor contributes the AMCs capital.
 Investor’s money is held in the Trust (mutual fund). The AMC gets a fee for managing
the funds, according to the mandate of the investors.
 The trustees make sure that the funds are managed according to the investor’s mandate.

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 Sponsor should have at least a 5-year track record in the financial services business and
should have made profit at least 3 out of the 5 years.
 Trustees are appointed by the sponsor with SEBI approval.
Sponsors of the UTI AMC:-
 State Bank of India
 Life Insurance Corporation of India
 Bank of Baroda
 Punjab National Bank
Custodians:-
Stock Holding Corporation of India Ltd
Registrars and Transfer Agents:-
1. UTI Technology services Ltd
2. Computer Age Management services pvt .Ltd
3. Datamatics Financial Software & Services Ltd
4. Karvy Computer Shares Pvt .Ltd
LIST OF MUTUAL FUNDS OF UTI
EQUITY FUNDS CATEGORY:
Diversified Funds:
 UTI MASTER SHARE UNIT SCHEME
 UTI MASTER PLUS UNIT SCHEME
 UTI EQUITY FUND
 UTI CONTRA FUND
 UTI WEALTH BUILDER FUND
 UTI TOP 100 FUND
Specialty/ Theme BasedFunds:
 UTI MNC FUND
 UTI MASTER VALUE FUND

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 UTI SERVICE INDUSTRIES FUND
 UTI INFRASTRUCTURE FUND
 UTI MIDCAP FUND
 UTI DIVIDEND YIELD FUND
 UTI OPPORTUNITIES FUND
 UTI LEADERSHIP EQUITY FUND
 UTI INDIA LIFESTYLE FUND
 UTI WEALTH BUILDER FUND SER.- 2
Sector Funds:
 UTI PHARMA & HEALTHCARE FUND
 UTI BANKING SECTOR FUND
 UTI ENERGY FUND
 UTI TRANSPORTATION & LOGISTICS FUND
Tax Planning Funds:
 UTI EQUITY TAX SAVING PLAN
 UTI MEPLUS
 UTI LONGTERM ADVANTAGE FUND- SER. 1
 UTI LONGTERM ADVANTAGE FUND- SER. 2
Arbitrage Fund:
 UTI SPREAD FUND
INDEX FUNDS CATEGORY
Pure Index Funds:
 UTI MASTER INDEX FUND
 UTI NIFTY INDEX FUND
Exchange Index Fund:

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 UTI SUNDER
BALANCED FUNDS CTAEGORY:
Pure Balanced Funds:
 UTI BALANCED FUND
Segment Focused Funds:
 UTI UNIT LINKED INSURANCE PLAN
 UTI CHARITABLE & RELIGIOUS TRUST & REISTERED SOCEITY
 UTI CHILDREN’S CAREER BALANCED PLAN
 UTI RETIRMENT BENEFIT PENSION FUND
 UTI MAHILA UNIT SCHEME
 UTI CCP ADVANTAGE FUND
Monthly Income Schemes:
 UTI MONTHLY INCOME SCHEME
 UTI MIS ADVANTAGE
INCOME FUNDS CTAEGORY:
Segment Focused Funds:
 UTI BOND FUND
 UTI TREASURY ADVANTAGE FUND
 UTI G-SEC FUND-INVESTMENT PLAN
 UTI GILT ADVANTAGE FUND- LTP
 UTI SHORT TERM INCOME FUND
 UTI FLOATING RATE FUND
 UTI G-SEC FUND- SHORT TERM PLAN
 UTI DYNAMIC BOND FUND
LIQUID FUNDS CATEGORY:

27. - 27 -
 UTI MONEY MARKET FUND
 UTI LIQUID FUND-CASH PLAN

28. - 28 -
Chapter-4
Research Methodology

29. - 29 -
Scope of the Study:
The scope of the study is about the analyzing the performance of different mutual fund schemes
to suggest measures to overcome underperformance of funds.
Objectives of the Study:
 To study the performance of the selected mutual funds and comparing with the UTI
Mutual Funds.
 To offer the suggestions for investors to choose best schemes
 The need of the study aimed to know the awareness in the public about the various
products and services provided by UTI-MF.
 A study was also conducted to measure the performance of various funds on the basis of
various performance measuring ratios such as sharp ration, total expense ratio, standard
deviation, Beta
 The study was basically undertaken to understand the financial needs of the customers
and to provide or suggest them products and services according their financial products.
Methodology
 For the first part of analysis i.e. fund returns, I have taken five top funds of same category
of different fund houses and compared their returns 5 years.
 For the second part of analysis i.e. risk profile, I have compared these five funds with
respect to their standard deviation, Sharpe ratio, beta, alpha and r- squared.
 The comparison of the funds is done using the bar charts and thus arriving at a conclusion
after analyzing those charts.
Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:
Primary Data:
 In dealing with real life problem it is often found that data at hand are
inadequate, and hence, it becomes necessary to collect data that is appropriate. There
are several ways of collecting the appropriate data which differ considerably in context of
money costs, time and other resources at the disposal of the researcher.
 Primary data can be collected either through experiment or through survey.
 The data collection for this study was done in the following manner:
Secondary Data:
The data has been collected from their officially website and AMFI and other sources

30. - 30 -
Limitations:
 The study is limited to equity diversified growth scheme
 Only 5 growth orient mutual funds are compared and analyzed
 performance cannot be judged by the performance of the particular scheme
 Period of the study is 45days
 Extreme variability in MARKET
 Unawareness among investors is next in the line. The investor does not want to invest in
Mutual Funds because of the myth that investment in these funds lead to insensitive
returns. They think that market is highly volatile and will not be able to give him the
secured returns.
 The investor also does not want to invest because of the greater risk attached with
equity. Rather, he wants to invest in a fixed instrument from where he may be able to get
secured returns instead of having unasserted returns.
Review of Literature:
“Comparative analysis of mutual funds” by L. Rajarajeswari examines each investment
alternative has its own strengths and weaknesses. Some options seek to achieve superior returns
(like equity), but with corresponding higher risk. Other provide safety (like PPF) but at the
expense of liquidity and growth. Other options such as FDs offer safety and liquidity, but at the
cost of return. Mutual funds seek to combine the advantages of investing in arch of these
alternatives while dispensing with the shortcomings.
Indian stock market is semi-efficient by nature and, is considered as one of the most respected
stock markets, where information is quickly and widely disseminated, thereby allowing each
security's price to adjust rapidly in an unbiased manner to new information so that, it reflects the
nearest investment value. And mainly after the introduction of electronic trading system, the
information flow has become much faster. But sometimes, in developing countries like India,
sentiments play major role in price movements, or say, fluctuations, where investors find it
difficult to predict the future with certainty. Some of the events affect economy as a whole, while
some events are sector specific. Even in one particular sector, some companies or major market
player are more sensitive to the event. So, the new investors taking exposure in the market
should be well aware about the maximum potential loss, i.e. Value at risk.
It would be good to diversify one's portfolio to include equity mutual funds and stocks. The
benefit of diversification are that while risk exposure from a particular asset may not be very
high, it would also give the opportunity of participating in the party in the equity markets- which
may have just begun- in a relatively safe manner(than investing directly into stock markets).
Mutual funds are one of the best options for investors to choose from. It must be realized that the
performance of different funds varies time to time. Evaluation of a fund performance is
meaningful when a fund has access to an array of investment products in market. An investor can
choose from a variety of funds to suit his risk tolerance, investment horizon and objective. Direct

31. - 31 -
investment in equity offers capital growth but at high risk and without the benefit of
diversification by professional management offered by mutual funds.

32. - 32 -
Chapter-5
Data Analysis
&
Interpretation

33. - 33 -
Analysis
UTI Mutual fund
Years UTI returns
2013 6.74305
2012 0.001001
2011 -0.000671
2010 0.000413
2009 0.001500
Findings:
The returns of UTI Mutual Funds in the year 2008 is high (0.0015) when compared to 2013 the
returns were 0.746 In the year 2011 the returns were negative (0.0005)
-0.001
-0.0005
0
0.0005
0.001
0.0015
0.002
2008 2009 2010 2011 2012 2013 2014
UTI Mutual fund returns
returns

34. - 34 -
DSP Black Rock Mutual fund
Year DSP Blackrock returns
2013 -0.000626
2012 0.001093
2011 0.000700
2010 0.000625
2009 0.002383
2008 -0.010662
2007 2.980209
Findings:
The returns of DSP Balck Rock in the year 2008is in negetive(-0.010115)when compared to
2013 the returns were -0.001.Whereas It has profits in the year 2009-2012 as comapring 2007-
08.
-0.01200000
-0.01000000
-0.00800000
-0.00600000
-0.00400000
-0.00200000
0.00000000
0.00200000
0.00400000
2013 2012 2011 2010 2009 2008 2007
DSPBlackrockMutual fund returns
DSP Blackrock returns

35. - 35 -
LIC Nomura Mutual fund
year Returns
2013 -0.066514
2012 0.091264
2011 -0.013082
2010 0.00555
2009 0.003935
2008 -0.056544
2007 2.980230
`
Findings :
The returns of LIC Nomura Mutual Funds were more fluctuating year by year i.e., in 2007-08
returns are (- 0.00375).In year 2009-10 the returns has raised to 0.0025 and again in 2011 it
falled drastically to (-0.0015).In year 2013 the returns are (-0.0005)
-0.004
-0.003
-0.002
-0.001
0
0.001
0.002
0.003
2006 2007 2008 2009 2010 2011 2012 2013 2014
LIC Nomura Mutual fund returns
returns

36. - 36 -
Edelweiss Top 100 Fund
Year Returns of Edelweiss top 100 funds
2013 -0.020698
2012 0.087886
2011 -0.083542
2010 0.092521
2009 2.902309
Findings:
The returns of Edelweiss Mutual Funds were high in the year 2009-10 but during the year 2013
the company’s returns were (-0.0001)
-0.001
-0.0008
-0.0006
-0.0004
-0.0002
0
0.0002
0.0004
0.0006
0.0008
2013 2012 2011 2010 2009
Edelweiss Top100 fund returns
returns of edelweiss top
100 funds

37. - 37 -
Birla Sun Life Mutual Fund
Years Returns of Birla Mutual funds
2013 -0.00104
2012 0.00128
2011 -0.00146
2010 0.00049
2009 0.00264
2008 2.98023
`
Findings:
The returns of Birla Sunlife Mutual Funds in the year 2008 were positive when compared to
2013 the returns were (-0.001).
-0.002
-0.0015
-0.001
-0.0005
0
0.0005
0.001
0.0015
0.002
0.0025
0.003
2013 2012 2011 2010 2009 2008
Birla Mutual fund returns
returns of Birla Mutual funds

38. - 38 -
Comparison of UTI top 100 equity growth fund with other mutual fund companies
years UTI Mutual
Fund
DSP BR
Mutual Fund
LIC Nomura
Mutual Fund
EDELWEISS
Mutual Fund
BIRLA
SUNLIFE
Mutual Fund
2013 6.74305 -0.000626259 -0.000665138 -0.02069 -0.001049961
2012 0.001001929 0.001093667 0.000921264 -0.020698 -0.001049961
2011 -0.000671377 0.000700226 -0.001309824 -0.020698 -0.001049961
2010 0.000413553 0.000625293 0.00054455 -0.095437 -0.001049961
2009 0.001500033 0.002383465 0.00213935 -0.3206982 -0.001049961
Finding:
After analysis of the given 5 companies (i.e. 2009-13) DSP Blackrock is performing well when
compared to UTI Mutual Funds and other companies.
-0.006 -0.004 -0.002 0 0.002 0.004 0.006
UTI Mutual Funds
DSP BR Mutual Fund
LIC Nomura Mutual Fund
EDELWEISS Mutual Fund
BIRLA SUNLIFE Mutual Fund 2013
2012
2011
2010
2009
Returns Of Different Mutual Fund Company schemes

39. - 39 -
Risk Adjusted Performance Measures
Risk Adjusted
Performance Measure
UTI Mutual
Fund
DSP BR
Mutual
Fund
LIC Nomura
Mutual Fund
Edelweiss
Mutual Fund
Birla Sunlife
Mutual Fund
Jensen ratio 0.000351705 0.000228 -0.00029 0.019916 -0.02717
Trenor's ratio 26.371 14.4119 11.3738 50.6896 36.0399
Sharpe ratio 21.372176 14.411 11.3738 20.7547 36.0399
Findings:
In Edelweiss company the Trenor’s ratio is more when compared to all other funds 50(it is high
than all other funds). For Birla, DSP and LIC the trenor’s and Sharpe ratio is equal i.e.,45, 25 and
10 respectively. In UTI the Trenor’s ratio is more than Sharpe i.e., 35.
-10
0
10
20
30
40
50
60
UTI Mutual
Fund
DSP BR Mutual
fund
LIC Nomura
Mutual Fund
Edelweiss
Mutual Fund
Birla Mutual
Funds
Jensen
Trenor's ratio
Sharpe ratio

40. - 40 -
Risk profile
Findings:
Edelweiss company has greater standard deviation when compared to other companies i.e.,
0.45.Beta is high in LIC whereas for DSP & Edelweiss were negative(less than 0.05).
-0.1
0
0.1
0.2
0.3
0.4
0.5
UTI Mutual
Fund
DSP BR
Mutual fund
LIC Nomura
Mutual Fund
Edelweiss
Mutual Fund
Birla Mutual
Funds
SD
Beta
Risk UTI Mutual
Fund
DSP BR
Mutual fund
LIC Nomura
Mutual fund
Edelweiss
Mutual Fund
Birla Sun Life Mutual
Fund
SD 0.046231 0.09333 0.02854 0.47601 0.0316
Beta 0.037467 -0.06855 0.086869 -0.01949 0.027414

41. - 41 -
UTI Opportunities Fund
Year Returns of UTI Opportunities fund
2013 0.0002418
2012 -0.0004258
2011 0.0002345
2010 -0.0002997
2009 -0.0011977
2008 0.0014945
Findings:
The returns of UTI Opportunittes Fund in the year 2009 were (-0.0012) when compared to 2013
the returns are positive i.e., 0.0001.
-0.0015
-0.001
-0.0005
0
0.0005
0.001
0.0015
0.002
2007 2008 2009 2010 2011 2012 2013 2014
UTI Opportunities Fund returns
Returns of Opportunities
fund

42. - 42 -
HSBC Opportunities Fund
Year Returns of HSBC Opportunities fund
2007 0.00106
2008 -0.00177
2009 0.00100
2010 0.00031
2011 -0.00058
2012 0.00051
2013 -0.00059
Findings:
The returns of HSBC Opportunities Funds were negative in the year 2013(-0.0007). In 2008 the
returns were very low i.e.,(0.00155)
-0.002
-0.0015
-0.001
-0.0005
0
0.0005
0.001
0.0015
2006 2007 2008 2009 2010 2011 2012 2013 2014
HSBC Opportunities fund returns
returns of Opportunities
fund

43. - 43 -
Franklin mutual fund
year Returns of Opportunities fund
2013 0.00044
2012 -0.00040
2011 0.00044
2010 -0.00022
2009 -0.00088
Findings:
The returns of Franklin Mutual Funds in the year 2009 were (-0.0009) when compared to 2013
the returns were 0.0004. In 2011 and 2013 the returns were high.
-0.001
-0.0008
-0.0006
-0.0004
-0.0002
0
0.0002
0.0004
0.0006
2008 2009 2010 2011 2012 2013 2014
Franklin Opportunities Fund returns
returns of Opportunities
fund

44. - 44 -
Mirae Mutual Fund
Findings:
The returns of Mirae Mutual Funds were positive in all the years from 2008 to 2013 i.e., 0.998 to
0.99. In 2008-10 the company has high returns
-0.0015
-0.001
-0.0005
0
0.0005
0.001
0.0015
2007 2008 2009 2010 2011 2012 2013 2014
Mirae India Opportunities fund returns
year Returns Opportunities fund
2013 8.63076
2012 -0.000509
2011 0.000239
2010 -0.000367
2009 -0.001331
2008 0.000964

45. - 45 -
Comparison of UTI Opportunities growth fund with other mutual fund companies
Year UTI Mutual Fund HSBC Mutual Fund FRANKLIN
Mutual Fund
MIRAE Mutual
Fund
2008 0.001494463 -0.001773453 0.0014637 0.000964385
2009 -0.001197687 0.001002012 -0.000883968 -0.00133128
2010 -0.000299652 0.000318627 -0.00022562 -0.000367204
2011 0.000234533 -0.000584406 0.000443507 0.000239484
2012 -0.000425803 0.000517448 -0.000404424 -0.000509193
2013 0.000241838 -0.000597976 0.000444592 8.63076E-05
Findings:
UTI Mutual Fund returns were high in the year 2008(i.e.0.0015) when compared to other
companies. But in the year 2013 Franklin returns are higher than UTI Mutual Funds. The returns
of HSBC were fluctuating in all the years.
-0.002 -0.001 0 0.001 0.002
2008
2009
2010
2011
2012
2013
MIRAE Mutual Fund
FRANKLIN Mutual Fund
HSBC Mutual Fund
UTI Mutual Fund

46. - 46 -
Risk Adjustment Measures
Risk
Adjustment
Measure
UTI Mutual
Fund
HSBC Mutual
Fund
FRANKLIN
Mutual Fund
MIRAE
Mutual Fund
Jenson -0.02155 -3.42969 -0.01746 -0.019042
Trenors 5.1131 -6.89433 7.8926 26.9798
Sharp ratio 12.43033 12.18074 7.8956 14.9219
Findings:
Trenors ratio is high for MIRAE mutual fund when compared to all the companies i.e., (26.9798)
whereas HSBC mutual fund is performing negative(-6.894). Sharp ratio is also high in MIRAE
mutual fund i.e.,14.9219. For all the companies Jenson ratio is negative (HSBC mutual fund is
not performing well when compared to other companies).
-10
0
10
20
30
40
50
UTI Mutual
Fund
HSBC Mutual
Fund
FRANKLIN
Mutual Fund
MIRAE
Mutual Fund
Sharp ratio
Trenors
Jenson

47. - 47 -
Risk Profile
Risk UTI Mutual
Fund
HSBC Mutual
Fund
FRANKLIN
Mutual Fund
MIRAE
Mutual Fund
SD 0.94847 0.11118 -0.000125183 0.021267
Beta 0.323219 0.147766 0.006966632 0.662065
Findings:
Standard deviation is negative for FRANKLIN mutual fund (i.e.,-0.000125183). Beta is high for
HSBC mutual fund (i.e.,0.11118) whereas for other companies they were very low.
-0.02
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
UTI Mutual
Fund
HSBC Mutual
Fund
FRANKLIN
Mutual Fund
MIRAE Mutual
Fund
Beta
SD

48. - 48 -
Chapter-6
Findings & Suggestions

49. - 49 -
FINDINGS OF THE STUDY:
Findings:
 The investors give more preference to regular income funds beside the consideration of
 Diversified equity
 Opportunities funds
 And the major finding is that I have compared UTI with other mutual fund companies
and I came to know that Edelweiss Mutual Fund was performing better than other funds.
 While dealing with them I have observed that the performance of the Edelweiss Mutual
Fund schemes is quite good and the demand for those schemes is also good. I came to
know that UTI top 100 equity is the most popular fund among individual investors.
According to them the 3yr and 5yr returns of the funds are very good. One of the reason
for great demands of AMCs fund is the Brand Value of UTI, as it is the largest AMC of
country
 In Edelweiss company the Trenor’s ratio is more when compared to all other funds
 Edelweiss company has greater standard deviation when compared to other companies
Suggestions:
 The Asset Management Company must design the portfolio in such a way, to increase the
returns.
 Take the beta ratios of various funds and suggest wither the fund is volatile or not
 Use treynor’s ratio and tell wither the fund of the company is giving returns justifying the
market risk to which all the similar funds are subject to.
 While investing into mutual funds the investor need to pick up a fund which performance
better to get better returns
 The Asset Management Company must dedicate itself to a more professional
management of the Fund because it motivates the investors and potential investors to
invest in Mutual Funds.
 The Asset Management Company must make sure that the Net Asset Value (NAV) of the
fund remains considerably high because it is the most important factor that would be
checked by the investors before investing in Mutual Funds.
 The Asset Management Company must organize itself professionally and manage the
Fund efficiently and with dedication to earn the goodwill of the public
 The Asset Management Company must make sure that the Net Asset Value (NAV) of the
fund remains considerably high because it is the most important factor that would be
checked by the investors before investing in Mutual Funds.

50. - 50 -
Chapter-7
Conclusion

51. - 51 -
Conclusion:-
The future of primary market is growing at a very high pace. Taking this thing into
consideration, there are lots of opportunities for the UTI Asset management Pvt Ltd to tap the
golden opportunities from the Indian market.
UTI Asset Management Pvt Ltd has emerged a very strong player in the field of distribution of
financial product within a short period of one year time in Northern India and is giving stiff
competition to all the players in the market including the banks. It is expanding its area of
business, if the progress of UTI MF goes in the same way, than I can say that there is bright
future for UTI MF in coming years. They have much potential to expand their distribution
network in northern India.
The company is currently following huge investment and growth strategies. A part from the
market growth rate the distribution industry doesn’t seem so attractive. Hence the firm should be
selective using growth strategies. This is not to undermine the bright future of UTI MF, just a
check to be a cautious.
There is little awareness about mutual fund in India; people have accepted it as a one of the
major investment avenue. Mutual funds will become one of the sought after investment avenues.
As far as the other investment products marketed by UTI MF are concerned, they have a ready
market. The only thing, which it needs to focus on, is that they should have a strong network so
that prompt services and availability of forms is made available to the investor at a short notice,
and if it keeps the traditional base for marketing in India, which is a price sensitive market, we
can say that UTI MF has a great future ahead.

52. - 52 -
BIBLIOGRAPHY
 www.utimf.com/
 www.amfiindia.com
 www.sebi.com
 www.utimf.com
 www.NSE.com
 www.economictimes.indiatimes.com/Mutual_fund
Reference Books
 Security Analysis and Portfolio Management : Donald E Fischer, Ronald J Jordan·
 Outlook Money·
 Mutual fund review
 How to rate management of mutual funds : Harvard Business review·
 Association of mutual funds in India (AMFI) Publications and quarterly reports·
 Securities and Exchange Board of India·
 Investopedia· Mutual Fund Performance : W. Sharpe· Market Timing, Selectivity, and
Mutual Fund Performance: An Empirical Investigation·
 Fact sheets of different fund house