INTRODUCTION TO THE STUDY

Financial management is an integral part of overall management and not merely a staff Function. It is not only confined to fund raising operation but extends beyond it is to Cover utilization of funds and monitoring its uses .These functions influence the operations of other crucial functional areas of the firm such as production, marketing and human resources. The financial management of a firm affects its very survival because the survival of the firm depends on strategic decisions made in such important matters such as product development, market development, entry in new product line, retrenchment of a product, expansion of the plant, change in location etc. In all these Matters assessment of financial implications of inescapable. The management of the finances of a business / organization in order to achieve financial objectives Taking a commercial business as the most common organizational structure, the key objectives of financial management would be to: Create wealth for the business Generate cash, and Provide an adequate return on investment bearing in mind the risks that the business is Taking and the resources invested there are three key elements to the process of financial management (1) Financial Planning Management need to ensure that enough funding is available at the right time to meet the needs of the business. In the short term, funding may be needed to invest in equipment and stocks, pay employees and fund sales made on credit. In the medium and long term, funding may be required for significant additions to the productive capacity of the business or to make acquisitions. 1

(2) Financial Control Financial control is a critically important activity to help the business ensure that the business is meeting its objectives. Financial control addresses questions such as: Are assets being used efficiently? Are the businesses assets secure? Do management act in the best interest of shareholders and in accordance with business rules? (3) Financial Decision-making The key aspects of financial decision-making relate to investment, financing and dividends: Investments must be financed in some way however there are always financing alternatives that can be considered. For example it is possible to raise finance from selling new shares, borrowing from banks or taking credit from suppliers A key financing decision is whether profits earned by the business should be retained rather than distributed to shareholders via dividends. If dividends are too high, the business may be starved of funding to reinvest in growing revenues and profits further. Financial services industry is the main stay of any economy as it mirrors the financial health of the country. Indian financial markets are highly regulated with different authorities keeping an eye on every avenue of financial sub-segments viz. Stock markets, mutual funds, insurance and banking. Stock markets are regulated by Securities and Exchange Board of India (SEBI) while Insurance Regulatory and Development Authority (IRDA) keep an eye on the insurance industry. Similarly, Reserve Bank of India (RBI) keeps a check on the Indian banking sector and Association of Mutual Funds in India (AMFI) takes care of the mutual fund segment. India boasts of a Rs 23, 000 crore (US$ 4.44 billion) - financial services distribution

and advice market. Recent developments, Government measures, key facts and figures pertaining to the same are discussed hereafter. Insurance Sector Even when the turbulent times are prevalent in the global financial markets, India Consumers have not lost faith in their financial systems. This fact is Marjory driving Indian insurance market. Banking Services Ratings agency Moody's believe that strong deposit base of Indian lenders and Government's persistent support to public sector and private banks would act as positive Factors for the 64 trillion (US$ 1.23 trillion) Indian banking industry amidst the negative Global scenario. According to the RBI's 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks', March 2011, Nationalized Banks, as a group, accounted For 53.0 per cent of the aggregate deposits, while State Bank of India (SBI) and its Associates accounted for 21.6 per cent. The share of new private sector banks, Old private Sector banks, Foreign banks and Regional Rural banks in aggregate deposits was 13.4 per Cent, 4.6 per cent, 4.4 per cent and 3 per cent respectively. Mutual Funds Industry in India Mutual Funds Definition refers to the meaning of Mutual Fund, Which is a fund, managed by an investment company with the financial objective of generating high Rate of Returns. These asset management or investment management companies collects money from the investors and invests those money in different Stocks, Bonds and other financial securities in a diversified manner. Before investing they carry out thorough research and detailed analysis on the market conditions and market trends of stock and bond prices. These things help the fund mangers to speculate properly in the right direction.

Recent data released by AMFI stated that the cumulative average Asset Under Management (AUM) of all fund houses aggregated to about Rs 6,87,640 core (US$ 132.77 billion) in the last quarter of 2011. Investing in the financial markets is no easy task, but learning the basics can move, you ahead and make you feel confident about where you decide to put your money. Thats what getting started is all about a mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus Collected is invested by the found manager in different types of securities depending upon the objective of the scheme. These could range from shares to debentures to money market instruments. The income earned through these investments and the capital appreciations realized by the scheme are shared by its unit holders in proportion to the number of units owned by them (pro rata). Thus a mutual fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed portfolio at a relatively low cost. Anybody with an inventible surplus of as little as a few thousand rupees can invest in mutual funds. Each mutual funds scheme has a defined investment objective and strategy. A mutual fund is the ideal investment vehicle for todays complex and modern financial scenario markets for equity shares, bounds and other fixed income instruments, real estate, derivatives and other assets have become mature and information driven. Price changes in these assets are driven by global events occurring in faraway places. A typical individual is unlikely to have the knowledge, skills, inclination and time to keep track of events, understand their implications and act speedily. An individual also finds it difficult to keep track of ownership of his assets, investment brokerage dues and bank transactions etc. A mutual fund is the answer to all these situations. It appoints professionally qualified and experienced staff that manages each of these functions on a full time basis. The large pool of money collected in the fund allows it to hire such staff at a very low cost to each investor. In effect, the mutual fund vehicle exploits economies of scale in all three areas research, investments and transaction processing. While the concept of individuals coming together to invest money collectively is not new, the mutual fund in its present form is a 20th century phenomenon. 4

In fact, mutual funds gained popularity only after the Second World War. Globally, there are thousand of firms offering tens of thousand of mutual funds with different investment objectives. Today, mutual funds collectively manage almost as much as or more money as compared to banks. A draft offer document is to be prepared at the time of launching the fund. Typically, it per specifies the investment objectives of the fund, the risk associated, the costs involved in the process and broad rules for entry into and exit from the fund and other areas of operation. In India, as in most countries, these sponsors need approval from a regulator, SEBI (Securities exchange board of India) in our case. SEBI looks at track records of the sponsor and its financial strength in granting approval to the fund for commencing operations. A sponsor then hires an asset management company to invest the funds according to the investment objective. It also hires another entity to be the custodian of the assets of the fund and perhaps a third one to handle registry work for the unit holders (subscribers) of the fund. In the Indian context, the sponsors promote the Asset Management Company also, in which it holds a majority stake. In many cases a sponsor can hold a 100% stake in the asset management company (AMC). E.g. Birla Global Finance is the sponsor of the Birla Sun Life Asset Management Company Ltd., which has floated different mutual funds schemes and also acts as an asset manager for the funds collected under the schemes. A stock exchange provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and dividends .Securities traded on a stock exchange include shares issued by companies, unit trusts, derivatives pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it must be listed there. Usually, there is a central location at least for record keeping, but trade is increasingly less linked to such a physical place, as modern markets are electronic networks which give those advantages of increased speed and reduced cost of 5

transactions. Trade on an exchange is by members only. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market .There are two main major stock exchanges in India. They are BSE and NSE. The Bombay Stock Exchange (BSE) is known as the oldest exchange in Asia. It traces its history to the 1850s, when Stockbrokers would gather under banyan trees in front of Mumbais Town Hall. The location of these meetings changed many times, as the number of brokers constantly increased. Capital market reforms in India and the launch of the Securities and Exchange Board of India (SEBI) accelerated the integration of the second Indian stock exchange called the National Stock Exchange (NSE) in 1992. After a few years of operations, the NSE has become the largest stock exchange in India. Three segments of the NSE trading platform were established one after another. The Wholesale Debt Market (WDM) commenced operations in June 1994 and the Capital Market (CM) segment was opened at the end of 1994. Finally, the Futures and Options segment began operating in 2000. Today the NSE takes the 14th position in the top 40 futures exchanges in the world. In 1996, the National Stock Exchange of India launched S&P CNX Nifty and CNX Junior Indices that make up 100 most liquid stocks in India. CNX Nifty is a diversified index of 50 stocks from 25 different economy sectors. The Indices are owned and managed by India Index Services and Products Ltd (IISL) that has a consulting and licensing agreement with Standard & Poors. In 1998, the National Stock Exchange of India launched its web-site and was the first exchange in India that started trading stock on the Internet in2000. The NSE has also proved its leadership in the Indian financial market by gaining many awards such as Best IT Usage Award by Computer Society in India (in 1996 and 1997) and CHIP Web Award by CHIP magazine (1999).

NEED FOR THE STUDY Indian mutual fund industry today, occupies a prominent place in Indias investment industry the mutual fund industry today is being universally acknowledged as knowledge-driven and globally competitive one of largest among in the developing countries. Middle class people (or) investors with less risk lower try to invest in Mutual Funds. Now-a-days three are number of Mutual Fund companies in India with various investment options. So the investors are in a dilemma to select the Mutual Fund Company. Hence the performance analysis of Mutual Funds will help Investors to select a specific type of Mutual Fund. Hence there is a need to study an the topic PERFORMANCE ANALYSIS OF MUTUAL FUNDS A COMPARATIVE STUDY OF ADITYA BIRLA AND ICICI PRUDENTIAL (GROWTH) FUNDS OBJECTIVES OF THE STUDY 1. To understand the concept relating to mutual funds. 2. To know the profile of ADITYA BIRLA and ICICI Mutual funds. 3. To analyse the performance of growth scheme ICICI GROWTH and ADITYA BIRLA Mutual Funds. 4. To make conclusions based on the study. SCOPE OF THE STUDY The scope of the project includes knowledge about the Mutual fund industry. As a whole this includes the detailed study of Mutual Funds, their types, benefits, present scenario, equities as a part of mutual funds, the risk return relationship related to investment avenues. Its also included the marketing and promotional aspects, the marketing & promotional activities have been carried out at the ADITYA BIRLA MONEY, Karimnagar. They have provided an opportunity to apply the financial planning process in practice & recommending financial strategies to investors. It enabled to create awareness among the investors about the right investment products, helping

investors understand the risk & return in the fund investing recommending model portfolios and selecting the right fund. METHODOLOGY OF THE STUDY DATA COLLECTION METHODS: For the purpose of the study data was collected through secondary source. Major source of the data are published Net Asset Value (NAV) of ICICI FMCG Equity Fund. The data is relating to daily NAV pertains to 3year i.e., April 2010 to march 2012. LIMITATIONS OF THE STUDY The time period taken for doing the analysis has been taken from April 2009 to March 2012 only. The performance of mutual fund cannot be judged with one year data. The mathematic errors may arise due to round off calculation. There is no overall performance of all mutual funds.

MUTUAL FUND INDUSTRY IN INDIA

The first introduction of a mutual fund in India occurred in 1963, when the Government of India launched Unit Trust of India (UTI). Until 1987, UTI enjoyed a monopoly in the Indian mutual fund market. Then a host of other governmentcontrolled Indian financial companies came up with their own funds. These included State Bank of India, Canara Bank, and Punjab National Bank. This market was made open to private players in 1993, as a result of the historic constitutional amendments brought forward by the then Congress-led government under the existing regime of Liberalization, Privatization and Globalization (LPG). The first private sector fund to operate in India was Kothari Pioneer, which later merged with Franklin Templeton. Mutual funds are an under tapped market in India Despite being available in the market for over two decades now with assets under management equaling Rs 7,81,71,152 Lakhs (as of 28 February 2010) (Source: Association of Mutual Funds, India), less than 10% of Indian households have invested in mutual funds. A recent report on Mutual Fund Investments in India published by research and analytics firm, Boston Analytics, suggests investors are holding back from putting their money into mutual funds due to their perceived high risk and a lack of information on how mutual funds work. This report is based on a survey of approximately 10,000 respondents in 15 Indian cities and towns as of March 2010. There are 43 Mutual Funds recently. The primary reason for not investing appears to be correlated with city size. Among respondents with a high savings rate, close to 40% of those who live in metros and Tier I cities considered suchinvestments to be very risky, whereas 33% of those in Tier II cities said they did not how or where to invest in such assets.

Source: www.investopedia.com On the other hand, among those who invested, close to nine out of ten respondents did so because they felt these assets were more professionally managed than other asset classes. Exhibit 2 lists some of the influencing factors for investing in mutual funds. Interestingly, while non-investors cite risk as one of the primary reasons they do not invest in mutual funds, those who do invest consider that they are professionally managed and more diverse most often as their reasons to invest in mutual funds versus other investments.

Source: www.investopedia.com

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COMPANY PROFILE
Established in 2000, Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla Group, a well known and trusted name globally amongst Indian conglomerates and Sun Life Financial Inc, leading international financial services organization from Canada. The local knowledge of the Aditya Birla Group combined with the domain expertise of Sun Life Financial Inc., offers a formidable protection for its customers future. With an experience of over 10 years, BSLI has contributed significantly to the growth and development of the life insurance industry in India and currently ranks amongst the top 6 private life insurance companies in the country. Known for its innovation and creating industry benchmarks, BSLI has several firsts to its credit. It was the first Indian Insurance Company to introduce "Free Look Period" and the same was made mandatory by IRDA for all other life insurance companies. Additionally, BSLI pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. To establish credibility and further transparency, BSLI also enjoys the prestige to be the originator of practice to disclose portfolio on monthly basis. These category development initiatives have helped BSLI be closer to its policy holders' expectations, which gets further accentuated by the complete bouquet of insurance products (viz. pure term plan, life stage products, health plan and retirement plan) that the company offers. Add to this, the extensive reach through its network of 600 branches and 1, 47,900 empanelled advisors. This impressive combination of domain expertise, product range, reach and ears on ground, helped BSLI cover more than 2.4 million lives since it commenced operations and establish a customer base spread across more than 1500 towns and cities in India. To ensure that our customers have an impeccable experience, BSLI has ensured that it has lowest outstanding claims ratio of 0.00% for FY 2010-11. Additionally, BSLI has the best Turn around Time according to LOMA on all claims Parameters. Such services are well supported by sound financials that the Company has. The AUM of BSLI stood at 19725 crs as on April 30, 2011, while the company has a rob ust capital base of Rs. 2450 crs

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Vision To be a leader and role model in a broad based and integrated financial services business. Mission To help people mitigate risks of life, accident, health, and money at all stages and under all circumstances Enhance the financial future of our customers including enterprises Values Integrity Commitment Passion Seamlessness Speed

About Aditya Birla Group A US $30 billion corporation, the Aditya Birla Group is in the league of Fortune 500 worldwide. It is anchored by an extraordinary force of130,000 employees, belonging to 40 different nationalities. The group operates in 27 countries across six continents truly India's first multinational corporation. Aditya Birla Group through Aditya Birla Financial Services Group (ABFSG), has a strong presence across various financial services verticals that include life insurance, fund management, distribution & wealth management, security based lending, insurance broking, private equity and retail broking The seven companies representing Aditya Birla Financial Services Group are Birla Sun Life Insurance Company Ltd., Birla Sun Life Asset Management Company Ltd., Aditya Birla Finance Ltd., Aditya Birla Capital Advisors Pvt. Ltd., Aditya Birla Money Ltd., 12

Aditya Birla Money Mart Ltd, and Aditya Birla Insurance Brokers Ltd. In FY 200910, ABFSG reported consolidated revenue from these businesses at Rs. 5871 Cr., registering a growth of 43%. Management Team 1. Mr. Jayant Dua, MD & CEO 2. Mr. Mayank Bathwal, CFO & Head of Institutional Sales 3. Mr. Amitabh Verma, Chief Operating Officer 4. Mr. Sashi Krishnan, Chief Investment Officer 5. Mr. Niall O'Hare, Chief Actuarial Officer 6. Mr. Arun Malkani, Chief Marketing Officer 7. Mr.Pramod Krishnamurthy,Head Information Technology 8. Mr. Saurov Ghosh, Head Human Resources & Training 9. Mr. Lalit Vermani, Head Compliance, Risk, Legal & Audit 10. Mr. Vikas Seth, Head of Sales DSF Board of Directors 1. Mr. Donald Stewart 2. Mr. Kumar Mangalam Birla 3. Mr. Ajay Srinivasan 4. Mr. Jayant Dua 5. Mr. Bishwanath Puranmalka 6. Mr. Dikran Ohannessian 7. Mr. Gian Gupta 8. Dr. Rakesh Jain 13

9. Mr. Suresh Talwar 10. Mrs. Tarjani Vakil 11. Mr. Venkatesh Mysore Committees Asset Liability Management Committee Audit Committee Investment Committee Risk Management Committee Policyholders' Protection Committee Finance Committee Share Allotment Committee

Business Continuity Plan Birla Sun Life Insurance is one of the few Indian companies to have a fully operational Business Continuity Plan (BCP) to ensure minimal impact to the organisation, its people, and most importantly, its customers. Our Business Continuity Planning (BCP) Program is a response plan which would ensure that in the event of a disaster we would be able to restore and recover operations for critical processes within a predetermined time after the disaster. BSLIs Business Continuity Management Policy To have a planned response in the event of any contingency ensuring recovery of critical activities at agreed levels within agreed timeframe thereby complying with various regulatory requirements Ensuring that we adhere to our clients, contractual, legal & regulatory requirements and minimizing the potential business impact to BSLI. Additionally to create a system that fosters continuous improvement of business continuity management. 14

Business Continuity Management System Objectives (BCMS) The objectives of BSLI's BCMS are as follows Ensuring a Proactive response to any contingency Ensuring recovery of identified critical activities within agreed timeframe Ensuring that we adhere to our clients, contractual, legal & regulatory requirements Programme Overview As part of our Business Continuity Plan, we have a documented crisis response and recovery procedure for quick response and stabilization of the situation, and a business continuity procedure to ensure recovery. Highlights of our Plan Document Crisis Management & incident response Data back-up, data and system recovery Recovery of all mission-critical business functions and supporting systems Alternate recovery sites if primary location is unavailable Communication with customers, employees and other stakeholders Assurance to customers that they will continue to receive optimum customer services at all times. Our Commitment Risk Assessment & Business Impact Analysis (BIA) annually Business Continuity Plan for HO & its Critical branches. Crisis Management Plan & Pandemic Response Plan at a corporate Level. 15

Business Continuity Plan Testing ensuring viability of all its plans. The activities set forth above may evolve as business and regulatory needs require.

Birla Sun Life Insurance Birla Sun Life Insurance Company (BSLI) Birla Sun Life Insurance established in 2000, is a private life insurance company. It is joint venture between the Aditya Birla Group- one of Indias leading business conglomerate and Sun Life Financial Inc, global financial service provider based in Canada. Aditya Birla holds 74% stake and Sun Life has 26% of equity in the joint venture. Product Portfolio of Birla Sun Life Insurance Birla Sun Life Insurance has wide array of products which include Child Plans, Retirement Plans, term plans, savings & investment plans and health plans. Retirement Plan With rising inflation, its absolutely necessary to make provisions for the future which makes retirement plan an important financial decision. Better known as Pension plan, this plan takes care of financial needs after retirement by investing a part of your savings for limited period. Pension plan provides steady income after retirement and takes care of daily needs. The pension plans offered by Birla Sun Life are BSLI Classic Life Plan, BSLI Dream Life Plan, BSLI Immediate income Plan and BSLI Secure 58 Plan. Child Plan: Parenthood brings responsibilities and no one is better judge of that than you. Child Plan is a plan specifically designed to take care of financial needs of your child. Child plan provides with necessary funds that will take care of childs education, marriage etc. By investing small portion of your savings you secure the financial end of your 16

child. Child plans of Birla Sun Life are called BSLI Classic Child Plan, BSLI Dream Child Plan and BSLI Dream Child Plan. Term Plan A risk plan which provides comprehensive cover for your family in the unfortunate event of untimely demise. A term life insurance plan provides good cover at relatively nominal cost and has no survival benefits. Birla Sun Life term plans are BSLI Term Plan, BSLI Premium Back Term and BSLI High Net worth Term. Investment Plan Popularly known as ULIP, an investment plan invests part of your savings in equity or debt market as per your preference. The objective of investment plan is to give you returns which easily beat the rising costs since the usual returns in a bank are extremely low. ULIPs offered by Birla Sun Life are BSLI Rainbow Plan, BSLI Platinum Advantage, BSLI Dream Endowment Plan, BSLI Money Back Plus Plan, BSLI Guaranteed Bach at Plan, BSLI Bach at Endowment Plan, Bach at-Money and Classic Endowment Plan. Health Plan Slightly different from health insurance, health plan provides cover for surgery costs, critical illness. A lump sum is paid irrespective of actual hospital bill. BSLI Health Plan and BSLI Universal health Plan are Birla Lifes health plans. Distribution Network Birla Sun Life Insurance has extensive network of 600 branches and 175000 empanelled advisors. Financial Information The total gross premium earned for the half year ended September 30, 2010 was Rs 25,935 million. The profit after tax for the same period is Rs 292 million. A total of 2761 claims were made during the period out of which 2408 claims were settled and 180 claims were rejected. 17

Marketing Campaign Birla Sun Life has signed up with Indian cricketers namely Yuvraj Singh, Virender Sehwag, Suresh Raina and Rohit Sharma as its brand ambassador. The ad campaign focuses on insecurity of successful cricketers saying Jab take ballad chalet hai, that chalet hain. Warna What Birla Sun Life wants to communicate is well thought out plans could go wrong its better to be ready. Birla Sun Life also launched a website called www.notjobsbutpassion.com which has career advice for children as part of their campaign to awaken customer for the need of child plans. Distinctions Birla Sun Life Insurance Company Ltd. (BSLI) won the prestigious Good Corporate Citizen Award from Bombay Chamber of Commerce and Industry for the year 200910 under the category of Banking and Financial Institutions. ICAI Awards for Excellence in Financial Reporting, Awarded a Silver Shield in the Insurance category by the Institute of Chartered Accountants of India (ICAI) for the financial year ended 31st March, 2009 Outlook Money Awards 2004 BSLI - Best Life Insurer (Runner Up) 2004 TROPHY. The 8th Asia Insurance Industry Awards 2004 - Birla Sun Life Insurance was among the top five nominees in the category. The Indo-Canadian Business Chamber- BSLI awarded for its 'Successful Performance' for 4 years April 2005. Management Jayant Dua is the MD of Birla Sun Life. Mayank Bathwal is the CFO of Birla Sun Life. Amitabh Verma is the COO of Birla Sun Life. Vikram Kotak is the CIO of Birla Sun Life.

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Fabien Jeudy is the Chief Actuarial Officer and Appointed Actuary of Birla Sun Life.

Reach Birla Sun Life Birla Sun Life Product Table Retirement/Pension Plan Retirement/Pension Plan Retirement/Pension Plan Retirement/Pension Plan Child Plan Child Plan Child Plan Term plan Term Plan Term Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan Health Plan Health Plan BSLI Dream Life Plan BSLI Classic Life Plan BSLI Immediate Income Plan BSLI Secure 58 Plan BSLI Dream Child Plan BSLI Classic Child Plan BSLI Bachat Child Plan BSLI Term Plan BSLI Premium Back Term BSLI Net worth Term BSLI Rainbow Plan BSLI Platinum Advantage BSLI Dream Endowment Plan BSLI Money Back Plus Plan BSLI Guaranteed Bachat Plan BSLI Bachat Endowment Plan BSLI Bachat-Money BSLI Classic Endowment Plan BSLI Health Plan BSLI Universal Health Plan

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COMPANY PROFILE ICICI PRUDENTIAL

ICICI Prudential Asset Management Company Ltd. is a joint venture between ICICI Bank, Indias second largest commercial bank & a well-known and trusted name in the financial services in India, & Prudential Plc, one of the United Kingdoms largest players in the financial services sectors. In a span of over 18 years since inception and just over 13 years of the Joint Venture, the company has forged a position of pre-eminence as one of the largest Asset Management Companys in the country, contributing significantly towards the growth of the Indian mutual fund industry. The company manages significant Mutual Fund Assets under Management (AUM), in addition to our Portfolio Management Services (PMS) and International Advisory Mandates for clients across international markets in asset classes like Debt, Equity and Real Estate with primary focus on risk adjusted returns. As an Asset Management Company, we have over 18 years of experience and are currently managing a comprehensive range of schemes of more than 46 Mutual fund schemes and a wide range of PMS Products for our investors spread across the country. We service this investor base with our own branch network of around 168 branches and a distribution reach of over 42,000 channel partners.

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Sponsors ICICI Bank

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

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Prudential Plc (formerly known as Prudential Corporation plc):

Prudential plc is an international financial services group with significant operations in Asia, the US and the UK. They serve approximately, 25 million customers and have 290 billion in assets under management. They are among the leading capitalized insurers in the world with an Insurance Groups Directive (IGD) capital surplus estimated at 3.4 billion (as at 31 December 2009). The Group is structured around four main business units: Prudential Corporation Asia (PCA): PCA is a leading life insurer in Asia with presence in 12 markets and a top three position in seven key locations: Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, and Vietnam. PCA provides a comprehensive range of savings, protection and investment products that are specifically designed to meet the needs of customers in each of its local markets. PCAs asset management business in Asia has retail operations in 10 markets and it independently manages assets on behalf of a wide range of retail and institutional investors across the region.

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Management Mr. Nimesh Shah- Managing Director & Chief Executive Officer Nimesh Shah joined ICICI Prudential AMC as its Managing Director in July 2007.Nimesh has completed his Chartered Accountancy. Prior to joining ICICI Prudential AMC, Nimesh was Senior General Manager at ICICI Bank and has over 18 years experience in banking and financial services. At ICICI Group, he has handled many responsibilities including project finance, corporate banking and international banking. He was associated with one of the first batches of senior managers selected to lead the foray of ICICI Bank into the international arena. He led ICICI Banks foray into the Middle-Eastern region and Africa. 1. Mr. B Ramakrishna - Executive Vice President 2. Mr. Raghav Iyengar - National Head Sales and distribution 3. Mr. Kalyan Prasath - Head - Information Technology 4. Mr. Hemant Agarwal - Head - Operations 5. Mr. Ashish Kakkar - Head - Human Resources 6. Mr. Aashish Somaiyaa - Head Retail Business Fund Management 1. Mr. S. Naren - Chief Investment Officer - Equity 2. Mr. Chaitanya Pande - Head Fixed Income Board of Directors: Asset Management Company Ms. Chanda Kochhar - Chairperson 1. Mr. Barry Stowe 23

2. Mr. Suresh Kumar 3. Mr. Vijay Thacker 4. Mr. Dileep C. Choksi 5. Mr. N.S. Kannan 6. Mr. Nimesh Shah 7. Mr. C. R. Muralidharan Directors of the Trustee Company 1. Mr. M. S. Parthasarthy 2. Mr. M. N. Gopinath 3. Mr. Keki Bomi Dadiseth 4. Mr. Vinod Dhall 5. Mr. Sandeep Batra Equity Funds ICICI Prudential Focused Bluechip Equity Fund Diversification is needed to reduce risk, but too much diversification can result in diminishing returns. Therefore, it makes sense to strike a balance between minimum risk and maximum returns, which is what a focused fund does. By investing in the largest companies because of an outlook that they will be the most stable through any situation, it strives to grow your wealth in the long run. ICICI Prudential Focused Bluechip Equity Fund, an open-ended equity saims to maximize long-term total returns, from a focused and optimally diversified portfolio that is invested in equity and equity related securities of about 20 companies belonging to the large cap domain. This strategy has the potential to

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generate positive returns from being overweight on certain high conviction stock picks.

Investment Philosophy This fund invests in about 20 equity and equity related securities, and seeks to generate long term capital appreciation. The portfolio is mandated to select stocks from among the Top 200 stocks in terms of market capitalization on the NSE. This fund adopts a bottom-up approach to Stock Selection and the fund manager has the flexibility to choose between stocks across all themes, sectors and investment styles. Investor Profile This fund is ideal for -Investors looking at the comfort of investments in large-cap companies. Investors seeking the benefits of concentrated bets on the stock ideas by way of potentially higher returns. Key Benefits Higher Liquidity due to broader investor participation Relatively lower volatility compared to mid and small cap stocks Large caps generally recover faster than small and mid cap stocks Benefit of optimal diversification strategy targeted at long term capital

appreciation Awards and Recognition ICICI Prudential AMC has constantly been on the forefront of innovation and has introduced products aligned to meet customer needs leading to a well-diversified product portfolio. As acknowledgment of our efforts, we have received valued recognition from various organizations of international repute. Bloomberg UTV Financial Leadership Awards 2011 25

ICICI Prudential AMC received the coveted UTV Bloomberg Financial Leadership Award 2011 for Best Contribution in Investor Education & Category Enhancement. Mr. Nimesh Shah, Managing Director, ICICI Prudential AMC received this prestigious accolade from Honorable Finance Minister, Shri Pranab Mukherjee. Morning Star Mutual Fund Awards 2011 India Debt Fund House Award 2011 Business World Mutual Fund Awards 2010 ICICI Prudential Discovery Fund adjudged Emerging Leader (Based on past 3year SIP performance) ICICI Prudential Discovery Fund - Insti.1 adjudged Best Equity Fund Mid and Small Cap for the year 2010 Mr Sankaran Naren adjudged Smartest Fund Manager (ICICI Prudential Discovery Fund) for the year 2010 Mr Sankaran Naren adjudged Best Equity Fund Manager (ICICI Prudential Discovery Fund) for the year 2010 NDTV Profit Mutual Fund Awards 2010 ICICI Prudential Discovery Fund - Category Emerging Leader (Based on past 3-year SIP performance) Lipper Fund Awards 2010 India: ICICI Prudential Dynamic Plan-Growth - Best Fund over 3 Years (Mixed Asset INR flexible) ICICI Prudential Gilt Fund Investment Pl-PF Opt-Gth - Best Fund over 3 & 5 Years (Bond Indian Rupee Government).

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ICICI Prudential Mutual Fund Managed by ICICI Prudential Asset Management Company, ICICI Prudential Mutual Fund is a joint venture between Prudential Plc and ICICI Bank. While Prudential Plc is one of the largest players in insurance and fund management sectors in UK, ICICI Bank, on the other hand, is Indias second largest bank in the private sector. Prudential Plc is a dominant player in international financial services group, with operations spread across Asia, the US, and the UK. ICICI Bank provides numerous banking products and financial services to both corporate and retail customers through different delivery channels and specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital, and asset management. ICICI Prudential Mutual Fund offers plenty of retail and corporate investment solutions ranging in a variety of asset classes, namely, Equity, Fixed Income, Real Estate, and Gold. Open Ended ICICI Prudential Aggressive Plan ICICI Prudential Balanced Fund ICICI Prudential Banking and Financial Services Fund ICICI Prudential Blended Plan ICICI Prudential Cautious Plan ICICI Prudential Child Care Plan ICICI Prudential Discovery Fund 27

ICICI Prudential Dynamic Plan ICICI Prudential Emerging STAR Fund ICICI Prudential Equity & Derivatives Fund ICICI Prudential Flexible Income Plan ICICI Prudential Floating Rate Plan ICICI Prudential FMCG Fund ICICI Prudential Focused Bluechip Equity Fund ICICI Prudential Gilt Fund Investment Plan ICICI Prudential Gilt Fund Treasury Plan ICICI Prudential Income Plan ICICI Prudential Index Fund ICICI Prudential Indo Asia Fund ICICI Prudential Infrastructure Fund ICICI Prudential Liquid Plan ICICI Prudential Long Term Floating Rate Plan ICICI Prudential MIP 25 ICICI Prudential Moderate Plan ICICI Prudential Monthly Income Plan ICICI Prudential Nifty Junior Index Fund ICICI Prudential Services Industries Fund 28

ICICI Prudential Short Term Plan ICICI Prudential Spice Fund ICICI Prudential Sweep Plan ICICI Prudential Target Returns Fund ICICI Prudential Tax Plan ICICI Prudential Technology Fund ICICI Prudential Top 100 Fund ICICI Prudential Top 200 Fund ICICI Prudential Very Aggressive Plan

Close Ended: Prudential ICICI Fusion Fund Prudential ICICI Hybrid Fixed Maturity Plan

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DEFINITION & SETUP OF MUTUAL FUND

In Mutual Fund Book, published by Investment company of U.S.A., A Mutual Fund is a financial service organization that receives money from shareholders, invest it, earns returns on it, attempts to make it grows and aggress to pay the share holders cash on demand for the current value of his investment. The investment managers of the funds manage these savings in such a way that the risk is minimized and steady return is ensured. Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 define Mutual Fund as, a fund established in the form of a trust to raise monies through the sale of units to the public or a section of the public under one or more schemes for investing in securities, including, money market instrument. INVESTING WITH MUTUAL FUNDS People have different investment needs depending on their financial goals, tolerance for risk and time frame when they need the money they invested. Our mutual funds are created with these needs in mind we start with you. Before you choose investments, think about your financial goals, risk tolerance and time frame. CHARACTERISTICS OF MUTUAL FUNDS 1. A mutual fund actually belongs to the investors who have pooled their funds. The ownership of the mutual fund is in the hands of the investors. 2. A mutual fund is managed by investment professionals and other services providers, who earn a fee their services, from the fund.

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3. The pool of the funds is invested in a portfolio of marketable investments. The value of the portfolio is updated every day. 4. The investors share in the fund is denominated by units. The value of the units changes with the change in the portfolios value, everyday. The value of one unit of the investment is called as the Net Asset Value or NAV 5. The investment portfolio of the mutual fund is created accordingly to the stated investment objectives of the funds.

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MUTUAL FUND STRUCTURE

32

SPONSOR Sponsor is the person who acting alone or in combination with another body corporate establishes a mutual fund. Sponsor must contribute at least 40% of the net worth of the Investment Managed and meet the eligibility criteria prescribed under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution made by it towards setting up of the Mutual Fund. TRUST The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882 by the sponsor. The trust deed provisions of the India Trusts Act, 1882 by the sponsor. The trust deed is registered under the Indian Registration Act, 1908. TRUSTEE Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals). The main responsibility of the Trustee is to safeguard the interest of the unit holders and inter alia ensure that the AMC functions in the interest of investors and in accordance with the securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the Trust Deed and the offer Documents of the respective Schemes. At least 2/3 rd directors of the Trustee are independent directors who are not associated with the sponsor in any manner. ASSET MANAGEMENT COMPANY (AMC) The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. The AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act as an asset management company of the Mutual Fund. At least 50% of the directors AMC are independent directors who are not associated with 33

the Sponsor in any manner. The AMC must have a net worth of at least 10 crores at all times. REGISTAR AND TRANSFER AGENT The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the Mutual Fund. The Registrar processes the application form, redemption requests and dispatches account statements to the unit holders. The Registrar and Transfer agent also handles communications with investors and updates investor records. FACTORS CONDUCIVE TO THE GROWTH OF MUTUAL FUNDS On observing the past trends, it can be seen that certain factors are essential for the growth of mutual funds industry. These factors are: INVESTOR BASE A Mutual fund makes it possible for investors to earn a higher return on their capital by pooling the capital of a large number of small investors and investing the pooled sum in a diversified manner. As the small investors cannot diversify on their own, their presence acts as a catalyst for the mutual funds to grow. As different investors have different investment requirements their presence also acts as an incentive for the mutual funds to come up with new schemes, thus helping in further evolution of the industry. RETURNS ON MARKET Mutual funds invest in a diversified manner; the returns generated by them are generally reflective of the market returns. Higher the market returns, higher the expected returns from mutual funds. Higher expected returns attract more investors, giving a boost to the mutual funds. INVESTMENT AVENUES The presence of certain investment avenues make mutual funds more attractive than direct investment. One example of such investment avenues is money 34

market instruments. These instruments generally involve a large minimum investment, which makes it impossible for a small investor to invest directly. Another example is investment in real estate. While a small investor may not be able to invest in real estate, especially on a diversified basis, internationally, there are mutual funds dedicated to such investments and are called Real Estate Mutual Funds (REMF) such funds are not presently not operating in India. Then there are some investment avenues which require in-depth knowledge of complex instruments, for example, securitized debt, derivatives, etc. Small investors may not have the knowledge to understand the complexities of such instruments on their own, and may find it preferable to depend on the expert knowledge offered by mutual fund mangers. The presence of such instruments makes investments flow to mutual MUTUAL FUND A GLOBALLY PROVEN INVESTMENT AVENUE World wide, Mutual Fund or unit trust as it is referred to in some parts of the world, has a long and successful history. The popularity of Mutual Fund has increase manifold in developed financial markets, like United States. As at the end of March 2006, in the US alone there were 8002 Mutual Fund with total assets of over US $ 9.36 trillion (Rs. 427 lakh crore) In India, the Mutual Fund industry started with the setting up of the Unit Trust of India in 1964. Public sector banks and financial institutions were allowed to establish MF in 1987. Since 1993, private sector and foreign institutions were permitted to set up MFs. In February 2003, following the repeal of the Unit Trust of India Act 1963 the erstwhile UTI was bifurcated into two separate entities Viz. The specified undertaking of the Unit Trust of India, representing broadly, the absets of US 64 schemes, assured the turns and certain others scheme and UTI MF conforming to SEBI MF Regulations. As at the end of March 2006, there were 29 MFs, which managed assets of Rs 231862 crores (Us $52 billion) under 592 scheme this fast growing industry is regulated by the Securities and Exchange Board of India (SEBI). 35

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. The history of mutual fund in India can be broadly divided into four distinct phases. TYPES OF MUTUAL FUNDS SCHEMES A Mutual Fund scheme can be classified into open-ended scheme or closeended scheme depending on its maturity period. 1. Open-ended Fund/Scheme

An open-ended fund scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-ended schemes is liquidity. 2. Closed-ended Fund/Scheme

A close- ended fund or scheme has a stipulated maturity period, e.g., 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at a time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchange where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periods repurchase of NAV-related prices. SEBI regulations stipulated that at least one of the two exit routes is provided to the investor, i.e., either repurchase facility or through listing on stock exchanges. These mutual fund schemes disclose NAV generally on a weekly basis. BY INVESTMENT OBJECTIVE A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be openended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows:

36

1. Growth/Equity-oriented Schemes The aim of growth funds is to provide capital appreciation over the medium to long-term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation etc., and the investors may choose an option depending on their preference. The investors must indicate the option in the application form. Mutual funds also allow investors to change the options at the later date. Growth schemes are good for investors having a long- term outlook seeking appreciation over a period of time. 2. Income/Debt-oriented Scheme The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of a change in the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long-term investors may not bother about these fluctuations. 3. Balanced Fund The aim of balanced fund is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40%-60% in equity and debt instruments. The funds are also affected because of fluctuation in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.

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4. Money mark mutual Fund These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities. Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods. 5. Gilt Fund These funds invest exclusively in government securities. Government securities have no default risk. NAVs of these schemes also fluctuate due to changes in interest rates and other economic factor as is the case with income or debt-oriented schemes. 6. Index Fund Index funds replicated the portfolio of a particular index such as the BSE sensitive index, S&P NSE 50 index (Nifty), etc. These schemes invest in the securities in the same weight age comprising an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, through not exactly by the same percentage due to some factors know as tracking error in technical terms. Necessary disclosures in this regard are made in the offer documents of the mutual fund scheme. These are also exchange traded index funds launched by the mutual funds are traded on the stock exchanges. SECTOR SPECIFIC FUNDS/SCHEMES These are the funds/schemes, which invest in the securities of only those sectors or industries as specified in the offer documents. E.g., pharmaceuticals, software, Fast Moving Consumer Goods (FMCG), petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to 38

diversified funds. Investors need to keep a watch on the performance of these sectors/ industries and must exit at an appropriate time. They may also seek the advice of an expert. Tax Saving Schemes These schemes offer tax rebates to the investors under specific provision of the income Tax Act, 1961 as the government offers tax incentives for investment in specific avenues e.g., Equities-Linked Saving Schemes (ELSS). Pension schemes launched by the mutual fund also offer tax benefits. These schemes are growthoriented and invest predominantly in equities. Their growth opportunities and risk associated are like any equity-oriented schemes. Systematic Investment Plan (SIP) Here the investor is given the option of preparing a pre-determined number of post-dated cheques in favour of the fund. He will get units on the date of the cheque at the existing NAV. Systematic Withdrawal Plan As opposed to the Systematic Investment Plan, the Systematic Withdrawal Plan allows the investor the facility to withdraw a pre-determined amounts/units from his fund at a pre-determined interval. The investors units will be redeemed at the existing NAV as on the day. ADVANTAGES OF MUTUAL FUNDS Professional Management Qualified professionals manage your money and they have research team that continuously analyses the performance and prospects of companies. They also select suitable investment to achieve the objectives of the schemes and expertise, which will add value to your investment. These fund managers are in a better position to manage your investment and get higher returns.

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Diversification The clich, dont put all your eggs in one basket really applies to the concept of intelligent investing. Diversification lowers your risk of loss by spreading your money across various industries. It is a rare occasion when all the stocks decline at the same time and in the same proportion. Sector funds will spread your investment across only one industry and it would not be wise for your portfolio to be skewed towards these types of funds for obvious reasons. Choice of Schemes Mutual Funds offer a variety of schemes that will suit your needs over a life time. When you enter a new stage in your life, all you need to do is sit down with your investment advisor who will help you to rearrange your portfolio to suit your altered lifestyle. Affordability As a small investors, many find that it is possible to buy shares of large corporations. Mutual funds generally buy and sell securities in large volumes which allow investors to benefit from lower trading costs. The smallest investor can get started on mutual funds because of the minimal investment requirements. You can invest with a minimum of Rs. 500 on a regular basis. Tax Benefits Investments held by investors for a period of 12 months or more qualify for Capital gains and will be taxed accordingly (10%of the amount by which the investment appreciated, or 20%after factoring in the benefits of cost indexation, whichever is lower). These investment also get the benefits of indexation. Liquidity With open-ended funds, you can redeem all or part of your investment any time you wish and receive the current value of the shares or the NAV related price. Funds are more liquid than most investment in shares, deposits and bonds and the

40

process is standardized, making it quick and efficient so that you can get your cash in hand as soon as possible. Transparency The performance of a mutual fund is reviewed by various publications and rating agencies, making it easy for investors to compare one to the other. Once you are part of a mutual fund scheme, you are provided with regular updates, for examples daily NAVs, as well as information on the specific investment made and the fund managers strategy and outlook of the scheme. Well Regulated All Mutual Funds are registered by SEBI and they function within the provision of strict regulations designed to protect the interests of investors. The operations of Mutual Funds are regularly monitored by SEBI. Flexibility Through features such as regular investment plans, regular withdrawal plans and dividend reinvestment plans, you can systematically invest or withdraw funds accordingly to your needs and convenience. Low Costs Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits sale in brokerage, custodial and other fees translate into lower costs for investor. RISK ASSOCIATED WITH MUTUAL FUND INVESTMENT At the cornerstone of investing is the basic principle that the greater the risk you take, the greater the potential reward. Typically risk is defined as short-term price variability. But on a long-term basis, risk is the possibility that your accumulated real capital will be insufficient to meet your financial goals. And if you want to reach your financial goals, you must start with an honest appraisal of your own personal comfort zone with regard to risk, individual tolerance for risk varies, creating a distinct 41

investment personality for each investors. Some investor can accept short-term volatility with ease, others with near panic. So whether you consider your investment temperament to be conservative, moderate or aggressive you need to focus on how comfortable or uncomfortable you will be as the value of your investment moves up or down. Mutual Funds offer incredible flexibility in managing Investment risk. Diversification and Automatic Investing (SIP) are two key techniques you can to reduce your investment risk considerably and reach your long-term financial goals. TYPES OF RISKS All investment involves some from of risk. Even an insured bank account is subject to the possibility that inflation will rise faster than your earning, leaving you with less real purchasing power than when you started (Rs. 1000 gets you less than it got your father when he was your age). Consider these common types of risk and evaluate them against potential rewards when you select an investment. Market Risk At times the prices or yields of all the securities in a particular market rise or fall due to broad outside influence. When this happen, the stock prices of both an outstanding, highly profitable company and a fledgling corporation may be affected. This change in price is due to market risk. Inflation Risks Sometimes referred to as loss of purchasing power. Whenever inflation sprints forward faster than earnings on your investment, you run the risk that youll actually be able to buy less, not more. Inflation risk also occurs when prices rise faster than your returns. Credit Risk In short, how stable is the company or entity to which you lend your money when you invest. How certain are you that it will able to pay the interest you are promised, or repay your principal when the investment matures?

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Interest Risk Changing interest rates affect both equities and bonds in many ways. Investors are reminded that predicting which way rates wick go is rarely successful. A diversified portfolio can help in offsetting these changes. Exchange Risk A number of companies generate revenues in foreign currencies and may have investments or expenses also denominated in foreign currencies. Changes in exchange rates may, therefore, have a positive or negative impact on companies which in turn would have an effect on the investment of the fund Investment Risk The sectoral fund schemes, investments will be predominantly in equities of select companies in the particular sectors. Accordingly, the NAV of the schemes are linked to the equity performance of such performance of such companies and may be more volatile than a more diversified portfolio of equities. Government Policy Changes in Government Policy especially in regard to the tax benefits may impact the business prospects of the companies leading to an impact on the investments made by the fund.

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Their appeal is not just limited to these categories of investors. Specific goals like career planning for children and retirement plans are also catered to by mutual funds. Children funds have found their way in a big way with many of the fund houses already having launched a children fund. Essentially debt oriented, these schemes invite investments, which are locked till the child attains majority and requires money for higher education. You can invest today and assure financial support to your child when he / she requires them. The schemes have given very good returns of around 14% in the last one-year period. These schemes are also designed to provide tax efficiency. The returns generated by these funds come under capital gains and attract tax at confessional rates. Besides this, if the objective was to save taxes, the industry offers equity linked savings schemes as well. Equity-based funds, they can take long-term call on stocks and market conditions without having to worry about redemption pressure as the money is locked in for three years and provide good returns. Some of the ELSS have been exceptional performers in past and cater to equity investor with good performances. The industry offered tax benefits under various sections of the IT Act. NET ASSET VALUE (NAV) The net assets value of the Fund is the cumulative market value of the assets fund net of its liabilities. The Fund is dissolved or liquidated, by selling off all the assets in the fund, this is the amount shareholders would collectively own. This gives rise to the concept of the net assets value per unit, which is the value, represented by the ownership of one unit in the fund. It is calculated simply by dividing the net assets value fund by the number of units. However, most people refer loosely to the NAV per unit as NAV, ignoring the per unit. We also abide by the same convention. Calculation of NAV The most important part of the calculation is the valuation of the assets owned by the Fund. Once it is calculated, the NAV is simply the net value of the assets divided by the number of units outstanding. The detailed method for the calculation of the net asset value is given below.

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The net asset value is the actual value of a unit on any business day, NAV is the barometer of the performance of the scheme. The net asset value is the market value of the assets of the schemes minus its liabilities and expenses. The NAV is the net asset value of the scheme divided by the number of units outstanding on the valuation NAV is calculated as follows Market value of Fund investment + receivables + accrued income + Assets - liabilities accrued expenses- Payables NAV = Number of Units outstanding RETURN ON INVESTMENT: Capital appreciation, profit earned on sale of units at a higher NAV than the original cost. Income distribution: When a fund makes a profit on its investment, this (dividend) profit will be given to investor as a dividend which can be re-invested in the fund or retain it in the form of cash.

r =

r = return on mutual fund NAVt = NAV at the time period t NAVt-1 = NAV at the time period t-1 It = Income at the time period t Gt = Capital gain distribution at the time period t

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PERFORMANCE MEASURES OF MUTUAL FUNDS Mutual Fund industry today, with about 34 players and more than five hundred schemes, is one of the most preferred investment avenues in India. However, with a plethora of schemes to choose from, the retail investor faces problems in selecting funds. Factors such as investment strategy and management style are qualitative, but the funds record is an important indicator too. Though past performance alone can not be indicate of future performance alone can not be indicative of future performance, it is, frankly the only quantitative way to judge how good a fund is at present. Therefore, there is a need to correctly assess the past performance of different mutual funds. Worldwide, good mutual fund companies over are know by their AMCs and this fame is directly linked to their superior stock selection of stocks. In other words, there must be some performance indicator that will reveal the quality of stock selection of various AMCs. Returns alone should not be considered as the basis of measurement of the performance of a mutual fund scheme, it should also include the risk taken by the fund manager because different funds will have different levels of risk attached to them. Risk associated with a fund, in a general, can be defined as variability or fluctuation in the returns generated by it. The higher the fluctuations in the returns of a fund during a given period, higher will be the risk associated with it. These fluctuations in the returns generated by a fund are resultant of two guiding forces. First, general market fluctuations, which affect all the securities present in the market, called market risk or systematic risk and second, fluctuations due to specific securities present in the portfolio of the fund, called unsystematic risk. The total risk of a given fund is sum of these two and is measured in terms of standard deviation of returns of the fund. Systematic risk, on the other hand, is measured in terms of beta, which represents fluctuations in the NAV of the fund vis46

-vis market; higher will be its beta. Beta is calculated by relating the returns on a mutual funds with the returns in the market. While unsystematic risk can be diversified through investments in a number of instruments, systematic risk cannot. By using the another in a better way. In order to determine the risk adjusted returns of investments portfolios, several eminent authors have worked since 1960s to develop composite performance indices to evaluate a portfolio by comparing alternative portfolio within a particular risk class. The most important and widely used measures of performance are: 1. The treynor measure 2. The sharpe measure 3. Jenson model The treynor measure: Developed by jack terynor, this performance measure evaluates fund on the basis of treynors index. This index is a ratio of return generated by the fund over and above risk free rate of return (generally taken to be the return on securities backed by the government, as there is no credit risk associated), during a given period and systematic risk associated with it (beta). Treynors index (Ti)=(Ri-Rf)/Bi. Where, Ri represents return of fund, Rf is risk free rate Bi is beta of the fund. All risk-averse investors would like to maximize this value. While a high and positive Treynors index shows a superior risk-adjusted performance of a fund, low and negative Treynors index is an indication of unfavorable performance. The Sharpe Measure

47

In this model, performance of a fund is evaluated on the basis of Sharpe Ratio, which is a ratio of returns generated by the fund over and above risk free rate of return and the total risk associated with it. Accordingly to Sharpe, it is the total risk of the fund that the investors are concerned about. So, the model evaluates funds on the basis of reward per unit of total risk. Sharpe Index (Si)=(Ri-Rf)/Si Si Where, Si is standard deviation of the fund.

While a high and positive Sharpe Ratio shows a superior risk-adjusted performance of a fund, a low and negative Sharpe Ratio is an indication of unfavorable performance. Comparison of Sharpe and Treynor Sharpe and Treynor measure are similar in a way, since they both divide the risk premium by a numerical risk measure. The total risk is appropriate when we are evaluating the risk return relationship for well-diversified portfolios. On the other hand, the systematic risk is the relevant measure of risk when we are evaluating less than fully diversified portfolios or individual stocks. For well-diversified portfolio the total risk is equal to systematic risk. Ranking based on the total risk (Sharpe measure) and systematic risk (Treynor measure) should be identical for a well-diversified portfolio, as the total risk is reduced to systematic risk. Therefore, a poorly diversified fund that ranks higher on Treynor measure, compared with another fund that is highly diversified, will rank lower on Sharpe Measure. Jenson Model Jensons model proposes another risk adjusted performance measure. This measure was developed by Michael Jenson and is some times referred to as the Differential Return Method. This measure involves evaluation of the returns that the fund has generated Vs. the returns actually expected out of the fund given the level of its systematic risk. The surplus between the two returns is called Alpha, which measure the performance of a fund compared with the actual returns over the period. Required returns of a fund at a given level of risk (Bi) can be calculated as: 48

Ri = Rf + Bi (Rm-Rf) Where, Rm is average market return during the given period.

After calculating it, alpha can be obtained by subtracting required return from the actual return of the fund. Higher alpha represents superior performance of the fund and vice versa. Limitation of this model is that it considers only systematic risk not the entire risk associated with the fund and an ordinary investors cannot mitigate unsystematic risk, as his knowledge of market is primitive. VOLATILITY MEASUREMENT OF MUTUAL FUND When considering a funds volatility, an investor may find it difficult to decide which fund will provide the optimal risk-reward combination. Optimal Portfolio Theory and Mutual Funds: One examination of the relationship between portfolio returns and risk is the efficient frontier, a curve that is a part of the modern portfolio theory. The curve forms from a graph plotting return and risk indicated by volatility, which is represented by standard deviation. According to the modern portfolio theory, funds lying on the curve are yielding the maximum return possible given the amount of volatility. Standard Deviation The standard deviation essentially reports a funds volatility, which indicates the tendency of the returns to rise or fall drastically in a short period of time. A security that is volatile is also considered higher risk because its performance may change quickly in either direction at any moment. The standard deviation of a fund measures this risk by measuring the degree to which the fund fluctuates in relation to its mean return, the average return of a fund over a period of time. Beta

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While standard deviation determines the volatility of a fund according to the disparity of its return over a period of time, beta, another useful statistical measure, determines the volatility, or risk, of a fund in comparison to that of its index or benchmark. A fund with a beta very close to 1 means the funds performance closely matches the index or benchmarka beta. TABLE SHOWING RETURN VALUES OF ICICI AND BIRLA SUNLIFE MUTUAL FUNDS (GROWTH SCHEME) FOR THE PERIOD APRIL-JUNE 2010

Date 1-Apr-10 5-Apr-10 6-Apr-10 7-Apr-10 8-Apr-10 9-Apr-10 12-Apr-10 13-Apr-10 15-Apr-10 16-Apr-10 19-Apr-10 20-Apr-10 21-Apr-10 22-Apr-10 23-Apr-10 26-Apr-10 27-Apr-10 28-Apr-10 29-Apr-10 30-Apr-10 3-May-10 4-May-10 5-May-10

ICICI PRUDENTIAL ADITYA BIRLA NIFTY NAV RETURN NAV RETURN INDEX RETURN 41.6 255.14 5249.2 42.03 1.03 258.41 1.28 5291.4 0.80 42 259.1 5369.6 -0.07 0.27 5 1.48 41.97 -0.07 259.72 0.24 5365.7 -0.07 41.73 -0.57 257.87 -0.71 5376.3 0.20 41.99 0.62 260.19 0.90 5302.4 -1.37 41.87 259.7 5354.1 -0.29 -0.19 5 0.98 41.82 259.47 5340.8 -0.12 -0.09 5 -0.25 41.5 -0.77 257.98 -0.57 5323.3 -0.33 41.38 -0.29 257.3 -0.26 5273.4 -0.94 41.13 254.44 5279.0 -0.60 -1.11 5 0.11 41.3 0.41 256.43 0.78 5208.3 -1.34 41.37 0.17 258.43 0.78 5230.3 0.42 41.48 0.27 259.11 0.26 5248.6 0.35 41.62 259.93 5269.6 0.34 0.32 5 0.40 41.78 260.94 5299.3 0.38 0.39 5 0.56 41.71 -0.17 260.89 -0.02 5322.1 0.43 41.3 -0.98 256.83 -1.56 5308.2 -0.26 41.47 258.11 5215.2 0.41 0.50 5 -1.75 41.5 0.07 259.9 0.69 5254.2 0.75 41.3 -0.48 257.6 -0.88 5278.4 0.46 40.97 -0.80 253.73 -1.50 5223.9 -1.03 40.94 252.39 5148.3 -0.07 -0.53 5 -1.45 50

6-May-10 7-May-10 10-May-10 11-May-10 12-May-10 13-May-10 14-May-10 17-May-10 18-May-10 19-May-10 20-May-10 21-May-10 24-May-10 25-May-10 26-May-10 27-May-10 28-May-10 31-May-10 1-Jun-10 2-Jun-10 3-Jun-10 4-Jun-10 7-Jun-10 8-Jun-10 9-Jun-10 10-Jun-10 11-Jun-10 14-Jun-10 15-Jun-10 16-Jun-10 17-Jun-10 18-Jun-10

40.82 40.43 41.23 41 41.05

-0.29 -0.96 1.98 -0.56

250.86 245.09 251.09 248.51 248.98

-0.61 -2.30 2.45 -1.03 0.19

0.12 41.26 0.51 40.99 40.76 40.76 40.05 40.26 40.18 40.16 39.44 39.95 40.46 40.83 41.05 40.5 40.77 0.67 41.23 41.31 40.87 40.74 40.97 41.36 41.47 41.78 41.87 41.93 42.02 0.21 41.98 -0.10 51 253.8 0.75 0.22 0.14 254.79 1.13 0.19 -1.07 -0.32 0.56 0.95 0.27 251.83 252.51 253.68 249.15 249.26 244.92 243.89 244.56 248.43 249.48 -0.65 -0.56 0.00 -1.74 0.52 -0.20 -0.05 -1.79 1.29 1.28 0.91 0.54 -1.34 245.79 249.77 247.59 247.26 241.25 242.68 240.53 240.85 234.86 238.31 241.92 245.41 247.12 243.58 251.51

1.02 -0.69 -0.87 -0.13 -2.43 0.59 -0.89 0.13 -2.49 1.47 1.51 1.44 0.70 -1.43 0.91 1.37 0.04 -1.74 -0.42 0.27 1.58 0.42 0.94 0.27 0.46 0.44 -0.39

5124.4 5072.3 5026.6 5189.7 5 5133.7 5 5157.5 5 5180.5 5 5093.9 5059.5 5 5065.1 4924.3 4946.7 4944.3 4945.3 4807.3 4915.1 5 5005.6 5076.1 5086.2 5 4970.7 5 5020.1 5 5112.6 5132.9 5 5036.7 4985.0 5 4999.6 5078.7 5 5120.1 5 5201.3 5225.0 5 5233.6 5 5274.9 5

-0.47 -1.02 -0.90 3.25 -1.08 0.46 0.45 -1.67 -0.67 0.11 -2.78 0.45 -0.05 0.02 -2.79 2.24 1.84 1.41 0.20 -2.27 0.99 1.84 0.40 -1.88 -1.03 0.29 1.58 0.82 1.58 0.46 0.16 0.79

21-Jun-10 22-Jun-10 23-Jun-10 24-Jun-10 25-Jun-10 28-Jun-10 29-Jun-10 30-Jun-10

42.44 42.3 42.36

1.10 -0.33

256.88 255.66 256.68

1.21 -0.47 0.40

0.14 42.38 42.17 42.56 42.25 42.44 0.45 Source: www.nseindia.com 0.05 -0.50 0.92 -0.73 257.77 256.51 254.9 258.27 256.02

-0.07 -0.63 1.32 -0.87 0.68

5266.5 5353.9 5 5316.1 5 5323.2 5 5320.5 5271.1 5333.5 5 5254.2 5

-0.16 1.66 -0.71 0.13 -0.05 -0.93 1.18 -1.49

52

Source: www.nseindia.com

52

TABLE SHOWING PARAMETERS OF ICICI AND BIRLA SUNLIFE MUTUAL FUNDS (GROWTH SCHEME) FOR THE PERIOD APRIL-JUNE 2010

PARAMETER ICICI PRUDENTIAL RETURN 0.03 RISK 0.73 COVARIANCE -0.06 BETA -0.05 SHARPES RATIO -8.16 JENSEN RATIO -6.29 TREYNORS RATIO 109.70

ADITYA BIRLA 0.02 1.04 -0.04 -0.03 -5.77 -6.17 184.58

NIFTY 0.01 1.21

INTERPRETATION: The return of ICICI Fund is 0.03% whereas return of ADITYA BIRLA Fund is -0.02% whereas return of NIFTY is 0.01% out of which ADITYA BIRLA is somewhat near to NIFTY. The risk of ICICI Fund is 0.73% and ADITYA BIRLA is 1.04% whereas risk of NIFTY is 1.21% which states that the risk is higher in NIFTY compared to ICICI and ADITYA BIRLA. The Sharpes Ratio of ICICI is -8.16% and ADITYA BIRLA is -5.77% which states that for every one unit of total risk the excess return of ADITYA BIRLA than risk free rate (i.e respectively. The Treynors Ratio of ICIC is 109.70% and ADITYA BIRLA is 184.58% which states that for every one unit of systematic risk the excess return of ADITY BIRLA than risk free rate (i.e 6%) is a positive return of 109.70% and 184.58% respectively. The Jensen Ratio of ICICI is -6.29% and ADITYA BIRLA is -6.17%which states that the deviation from expected return of ICICI and ADITYA BIRLA is -6.29% and -6.17% respectively. 6%) is a negative return of -8.16% and -5.77%

53

TABLE SHOWING RETURN VALUES OF ICICI AND BIRLA SUNLIFE MUTUAL FUNDS (GROWTH SCHEME) FOR THE PERIOD JULY-SEPTEMBER 2010

54

Date 1-Jul-10 2-Jul-10 5-Jul-10 6-Jul-10 7-Jul-10 8-Jul-10 9-Jul-10 12-Jul-10 13-Jul-10 14-Jul-10 15-Jul-10 16-Jul-10 19-Jul-10 20-Jul-10 21-Jul-10 22-Jul-10 23-Jul-10 26-Jul-10 27-Jul-10 28-Jul-10 29-Jul-10 30-Jul-10 2-Aug-10 3-Aug-10 4-Aug-10 5-Aug-10 6-Aug-10 9-Aug-10

ICICI PRUDENTIAL ADITYA BIRLA NAV RETURN NAV RETURN 42.2 256.3 1 9 42.1 255.6 8 -0.07 4 -0.29 42.1 255.3 4 -0.09 -0.13 42.4 257.6 0.62 1 0.90 42.2 256.9 3 -0.40 3 -0.26 42.5 259.1 2 0.69 8 0.88 42.8 261.9 0.66 5 1.07 42.9 263.8 2 0.28 1 0.71 42.9 264.9 3 0.02 9 0.45 42.8 264.2 5 -0.19 7 -0.27 42.8 263.5 4 -0.02 1 -0.29 43.0 265.1 1 0.40 3 0.61 43.0 265.0 1 0.00 4 -0.03 42.9 263.9 2 -0.21 6 -0.41 42.9 265.9 9 0.16 7 0.76 43.1 268.2 7 0.42 1 0.84 43.2 267.8 6 0.21 -0.15 43.2 264.9 1 -0.12 2 -1.08 43.3 265.3 3 0.28 8 0.17 43.2 265.2 1 -0.28 2 -0.06 43.2 265.7 8 0.16 7 0.21 43.1 265.3 9 -0.21 7 -0.15 43.4 267.9 8 0.67 3 0.96 43.5 268.8 6 0.18 3 0.34 43.6 269.6 6 0.23 8 0.32 43.5 268.3 7 -0.21 3 -0.50 43.5 269.155 4 -0.07 0.29 43.7 271.5 4 0.46 3 0.90

NAV

NIFTY RETURN

5312.05 5251.25 5237 5236.1 5293.1 5242 5297.2 5352.25 5370.2 5402 5387.1 5376.65 5392.7 5387 5368.85 5399.15 5441.9 5446.55 5420.2 5436.1 5397.85 5408.4 5369.55 5432.5 5441.35 5470.15 5448.25 5439.8 -1.14 -0.27 -0.02 1.09 -0.97 1.05 1.04 0.34 0.59 -0.28 -0.19 0.30 -0.11 -0.34 0.56 0.79 0.09 -0.48 0.29 -0.70 0.20 -0.72 1.17 0.16 0.53 -0.40 -0.16

Source: www.nseindia.com

56

Source: www.nseindia.com 57

TABLE SHOWING PARAMETERS OF ICICI AND BIRLA SUNLIFE MUTUAL FUNDS (GROWTH SCHEME) FOR THE PERIOD JULY-SEPTEMBER 2010 PARAMETER RETURN RISK COVARIANCE BETA SHARPES RATIO JENSEN RATIO TREYNOR RATIO INTERPRETATION: The return of ICICI Fund is 0.15% whereas return of ADITYA BIRLA Fund is -0.20% whereas return of NIFTY is o.19% out of which ADITYA BIRLA is somewhat near to NIFTY. The risk of ICICI Fund is 0.42% and ADITYA BIRLA is 0.64% whereas risk of NIFTY is 0.74% which states that the risk is higher in NIFTY compared to ICICI and ADITYA BIRLA. The Sharpes Ratio of ICICI is -13.91% and ADITYA BIRLA is -9.06% which states that for every one unit of total risk the excess return of ADITYA BIRLA than risk free rate (i.e 6%) is a negative return of -13.91% and -9.06% respectively. The Treynors Ratio of ICIC is 395.40% and ADITYA BIRLA is 153.26% which states that for every one unit of systematic risk the excess return of ADITY BIRLA than risk free rate (i.e 6%) is a positive return of 395.40% and 153.26% respectively. The Jensen Ratio of ICICI is -5.94% and ADITYA BIRLA is -6.02%which states that the deviation from expected return of ICICI and ADITYA BIRLA is -5.94% and -6.02% respectively. 58 ICICI PRUDENTIAL 0.15 0.42 -0.01 -0.01 -13.91 -5.94 395.40 ADITYA BIRLA 0.20 0.64 -0.05 -0.04 -9.06 -6.02 153.26 NIFTY 0.19 0.74

TABLE SHOWING RETURN VALUES OF ICICI AND BIRLA SUNLIFE MUTUAL FUNDS (GROWTH SCHEME) FOR THE PERIOD OCTOBER-DECEMBER 2010 ICICI PRUDENTIAL ADITYA BIRLA NIFTY NAV RETURN NAV RETURN INDEX RETURN 46.9 296.86 7 6030.3 47.0 297.04 2 0.11 0.06 6144.7 1.90 47.0 297.81 6 0.09 0.26 6159.45 0.24 47.3 300.11 1 0.53 0.77 6150.95 -0.14 47.0 299.26 7 -0.51 -0.28 6186.85 0.58 46.8 297.05 9 -0.38 -0.74 6121.4 -1.06 47.0 298.77 4 0.32 0.58 6105.95 -0.25 46.9 296.92 7 -0.15 -0.62 6135.95 0.49 47.5 300.18 7 1.28 1.10 6091.45 -0.73 47.2 298.44 7 -0.63 -0.58 6234.3 2.35 46.6 292.9 7 -1.27 -1.86 6175.9 -0.94 46.7 293.5 3 0.13 0.20 6112.75 -1.02 46.5 292.01 9 -0.30 -0.51 6114.45 0.03 46.5 290.51 1 -0.17 -0.51 6002.95 -1.82 47.1 294.89 7 1.42 1.51 6008.9 0.10 47.2 295.1 0.06 0.07 6113.4 1.74 47.5 296.38 1 0.66 0.43 6101.25 -0.20 47.3 295.53 4 -0.36 -0.29 6116.3 0.25 47.2 293.55 1 -0.27 -0.67 6075.45 -0.67 47.2 293.26 4 0.06 -0.10 6039.95 -0.58 47.2 0.02 293.58 0.11 6021.15 -0.31 59

Date 1-Oct-10 4-Oct-10 5-Oct-10 6-Oct-10 7-Oct-10 8-Oct-10 11-Oct-10 12-Oct-10 13-Oct-10 14-Oct-10 15-Oct-10 18-Oct-10 19-Oct-10 20-Oct-10 21-Oct-10 22-Oct-10 25-Oct-10 26-Oct-10 27-Oct-10 28-Oct-10 29-Oct-10

1-Nov-10 2-Nov-10 3-Nov-10 4-Nov-10 8-Nov-10 9-Nov-10 10-Nov-10 11-Nov-10 12-Nov-10 15-Nov-10 16-Nov-10 18-Nov-10 19-Nov-10 22-Nov-10 23-Nov-10 24-Nov-10 25-Nov-10 26-Nov-10 29-Nov-10 30-Nov-10 1-Dec-10 2-Dec-10 3-Dec-10 6-Dec-10

5 47.6 4 47.7 5 47.9 5 48.5 5 48.4 8 48.5 9 48.5 3 48.1 5 47.5 7 47.8 5 47.2 2 47.1 8 46.6 7 47.3 47.0 6 46.6 6 46.2 2 45.9 5 46.3 2 46.6 7 47.1 5 47.4 9 47.2 5 47.0 9

297.35 0.83 297.78 0.23 299.32 0.42 303.54 1.25 304.65 -0.14 306.42 0.23 305.28 -0.12 301.34 -0.78 296.15 -1.20 297.26 0.59 291.82 -1.32 291.7 -0.08 287.57 -1.08 1.35 -0.51 286.25 -0.85 281.52 -0.94 277.75 -0.58 279.76 0.81 283.13 0.76 287.12 1.03 290.75 0.72 287.04 -0.51 286.42 -0.34 60 -0.22 6033.65 0.34 -1.28 6013.35 -0.16 1.26 6023.05 2.59 1.41 5871 1.02 1.20 5811.6 0.37 0.72 5789.95 -0.66 -1.34 5828.55 -0.94 -1.65 5883.95 -1.06 -0.78 5946.8 -0.41 292.32 288.5 -1.42 1.65 -1.31 6011.3 5920.9 5971.55 -1.06 -1.50 0.86 -0.04 6075.95 -1.10 -1.83 6143.45 1.05 0.37 6079.9 -1.66 -1.72 6182.3 -1.66 -1.29 6286.35 -0.27 -0.37 6303.2 0.35 0.58 6281 -0.86 0.37 6335.25 2.02 1.41 6209.6 0.96 0.52 6150.6 0.38 0.14 6127.55 0.58 1.28 6092.3 1.18

7-Dec-10 8-Dec-10 9-Dec-10 10-Dec-10 13-Dec-10 14-Dec-10 15-Dec-10 16-Dec-10 20-Dec-10 21-Dec-10 22-Dec-10 23-Dec-10 24-Dec-10 27-Dec-10 28-Dec-10 29-Dec-10 30-Dec-10 31-Dec-10

46.8 3 46.3 1 45.7 6 46.2 4 46.4 6 46.7 1 46.5 4 46.6 9 46.6 3 46.7 9 46.7 2 46.6 2 46.7 3 46.6 8 46.6 8 47.0 1 47.2 7 47.4 9

284.42 -0.55 281.17 -1.11 273.59 -1.19 275.84 1.05 279.07 0.48 282.03 0.54 279.39 -0.36 281.68 0.32 281.78 -0.13 283.56 0.34 282.96 -0.15 282.33 -0.21 281.95 0.24 281.24 -0.11 281.3 0.00 283.46 0.71 284.83 0.55 287.77 0.47 1.03 6105.1 0.71 0.48 6062.35 0.95 0.77 6005.15 0.00 0.02 6005.35 -0.13 -0.25 6013.3 1.23 -0.13 5940.25 -1.09 -0.22 6005.9 -0.22 -0.21 6019 0.98 0.63 5960.4 0.57 0.04 5926.85 0.28 0.82 5910.55 -0.35 -0.94 5931.15 0.04 1.06 5928.7 0.78 1.17 5882.65 2.11 0.82 5761 -2.76 -2.70 5924.25 -0.51 -1.14 5954.4 -0.68 -0.70 5995.05 -0.64

Source: www.nseindia.com

61

62

Source: www.nseindia.com

63

TABLE SHOWING PARAMETERS OF ICICI AND BIRLA SUNLIFE MUTUAL FUNDS (GROWTH SCHEME) FOR THE PERIOD OCTOBERDECEMBER 2010 PARAMETER RETURN RISK COVARIANCE BETA SHARPES RATIO JENSEN RATIO TREYNORS RATIO INTERPRETATION: The return of ICICI Fund is 0.02% whereas return of ADITYA BIRLA Fund is -0.05% whereas return of NIFTY is 0.03% out of which ADITYA BIRLA is somewhat near to NIFTY. The risk of ICICI Fund is 0.68% and ADITYA BIRLA is 0.98% whereas risk of NIFTY is 1.08% which states that the risk is higher in NIFTY compared to ICICI and ADITYA BIRLA. The Sharpes Ratio of ICICI is -8.76% and ADITYA BIRLA is -6.19% which states that for every one unit of total risk the excess return of ADITYA BIRLA than risk free rate (i.e respectively. The Treynors Ratio of ICIC is -77.02% and ADITYA BIRLA is -24.44% which states that for every one unit of systematic risk the excess return of ADITY BIRLA than risk free rate (i.e 6%) is a negative return of -77.02% and -24.44% respectively. The Jensen Ratio of ICICI is -5.52% and ADITYA BIRLA is -4.57%which states that the deviation from expected return of ICICI and ADITYA BIRLA is -5.52 and -4.57% respectively. 6%) is a negative return of -8.76% and -6.19% ICICI PRUDENTIAL 0.02 0.68 0.08 0.08 -8.76 -5.52 -77.02 ADITYA BIRLA -0.05 0.98 0.25 0.25 -6.19 -4.57 -24.44 NIFTY 0.03 1.08

64

TABLE SHOWING RETURN VAUES OF ICICI AND BIRLA SUNLIFE MUTUAL FUNDS (GROWTH SCHEME) FOR THE PERIOD JANUARY-MARCH 2011 ICICI PRUDENTIAL ADITYA BIRLA NIFTY NAV RETURN NAV RETURN INDEX RETURN 47.57 289.47 6177.45 47.36 288.23 -0.44 -0.43 6172.75 -0.08 46.97 -0.82 285.91 -0.80 6141.35 -0.51 46.79 -0.38 283.02 -1.01 6107 -0.56 46.2 -1.26 277.01 -2.12 6030.9 -1.25 45.69 -1.10 271.46 -2.00 5901.3 -2.15 45.8 0.24 270.69 -0.28 5767.95 -2.26 46.2 275 0.87 1.59 5800.05 0.56 45.72 271.41 -1.04 -1.31 5850.75 0.87 45.41 267.45 -0.68 -1.46 5752.1 -1.69 45.48 266 0.15 -0.54 5648.8 -1.80 45.67 0.42 268.08 0.78 5682.55 0.60 45.62 -0.11 267.35 -0.27 5737.35 0.96 45.56 -0.13 266.56 -0.30 5656 -1.42 45.54 -0.04 266.61 0.02 5692.05 0.64 45.88 0.75 269.01 0.90 5717.1 0.44 45.65 266.69 -0.50 -0.86 5763.3 0.81 45.18 262.08 -1.03 -1.73 5725.3 -0.66 44.51 256.77 -1.48 -2.03 5614 -1.94 44.63 257.35 0.27 0.23 5452.55 -2.88 44.28 -0.78 253.45 -1.52 5537.3 1.55 44.34 0.14 254.52 0.42 5469.55 -1.22 44.63 0.65 258.77 1.67 5430.45 -0.71 44.07 -1.25 253.98 -1.85 5519.9 1.65 43.92 -0.34 252.06 -0.76 5430.15 -1.63 43.49 247 -0.98 -2.01 5432.35 0.04 43 240.45 -1.13 -2.65 5293.05 -2.56 42.79 239.48 -0.49 -0.40 5246.05 -0.89 43.36 243.45 1.33 1.66 5219.65 -0.50 44.13 1.78 251.11 3.15 5340.25 2.31 44.32 252.1 0.43 0.39 5467.75 2.39 44.41 0.20 252.26 0.06 5467.6 0.00 44.72 0.70 254.85 1.03 5501.7 0.62 44.33 -0.87 250.42 -1.74 5557.55 1.02 65

Date 3-Jan-11 4-Jan-11 5-Jan-11 6-Jan-11 7-Jan-11 10-Jan-11 11-Jan-11 12-Jan-11 13-Jan-11 14-Jan-11 17-Jan-11 18-Jan-11 19-Jan-11 20-Jan-11 21-Jan-11 24-Jan-11 25-Jan-11 27-Jan-11 28-Jan-11 31-Jan-11 1-Feb-11 2-Feb-11 3-Feb-11 4-Feb-11 7-Feb-11 8-Feb-11 9-Feb-11 10-Feb-11 11-Feb-11 14-Feb-11 15-Feb-11 16-Feb-11 17-Feb-11 18-Feb-11

21-Feb-11 22-Feb-11 23-Feb-11 24-Feb-11 25-Feb-11 28-Feb-11 1-Mar-11 3-Mar-11 4-Mar-11 7-Mar-11 8-Mar-11 9-Mar-11 10-Mar-11 11-Mar-11 14-Mar-11 15-Mar-11 16-Mar-11 17-Mar-11 18-Mar-11 21-Mar-11 22-Mar-11 23-Mar-11 24-Mar-11 25-Mar-11 28-Mar-11 29-Mar-11 30-Mar-11 31-Mar-11

44.56 44.43 44.28 43.52 43.56 43.67 44.51 44.39 44.46 44.12 44.59 44.61 44.46 44.12 44.37 44.14 44.44 44.29 44.03 43.98 44.1 44.43 44.7 45.22 45.45 45.87 46.33 46.49

0.52 -0.29 -0.34 -1.72 0.09 0.25 1.92 -0.27 0.16 -0.76 1.07 0.04 -0.34 -0.76 0.57 -0.52 0.68 -0.34 -0.59 -0.11 0.27 0.75 0.61 1.16 0.51 0.92 1.00 0.35

251.86 249.28 247.19 238.44 239.89 240.93 248.6 248.2 248.42 245.3 247.54 248.2 247.27 244.11 246.28 242.28 245.29 243.83 241.12 240.73 243.16 245.82 247.8 252.6 254.24 256.33 259.74 260.06

0.58 -1.02 -0.84 -3.54 0.61 0.43 3.18 -0.16 0.09 -1.26 0.91 0.27 -0.37 -1.28 0.89 -1.62 1.24 -0.60 -1.11 -0.16 1.01 1.09 0.81 1.94 0.65 0.82 1.33 0.12

5456.6 5504.4 5452.45 5408.75 5321.05 5330.15 5382 5478.45 5586.2 5490.05 5466.1 5542.4 5516.1 5456.15 5436.5 5420 5475.95 5455.4 5475.35 5408.75 5390.85 5411.4 5501.8 5588.65 5645.25 5686.5 5755.8 5803.05

-1.82 0.88 -0.94 -0.80 -1.62 0.17 0.97 1.79 1.97 -1.72 -0.44 1.40 -0.47 -1.09 -0.36 -0.30 1.03 -0.38 0.37 -1.22 -0.33 0.38 1.67 1.58 1.01 0.73 1.22 0.82

Source: www.nseindia.com

66

Source: www.nseindia.com

67

TABLE SHOWING PARAMETERS OF ICICI AND BIRLA SUNLIFE MUTUAL FUNDS (GROWTH SCHEME) FOR THE PERIOD JANUARYMARCH 2011

PARAMETER RETURN RISK COVARIANCE BETA SHARPES RATIO JENSEN RATIO TREYNORS RATIO INTERPRETATION:

ICICI PRUDENTIAL -0.03 0.80 0.36 0.29 -7.59 -4.28 -20.94

ADITYA BIRLA -0.17 1.34 0.65 0.52 -4.60 -2.98 -11.78

NIFTY -0.09 1.29

The return of ICICI Fund is -0.03% whereas return of ADITYA BIRLA Fund is -0.17% whereas return of NIFTY is -0.09% out of which ADITYA BITLA is somewhat near to NIFTY.

The risk of ICICI Fund is 0.80% and ADITYA BIRLA is 1.34% whereas risk of NIFTY is 1.29% which states that the risk is higher in NIFTY compared to ICICI and ADITYA BIRLA.

The Sharpes Ratio of ICICI is 7.59% and ADITYA BIRLA is -4.60% which states that for every one unit of total risk the excess return of ADITYA BIRLA than risk free rate (i.e 6%) is a negative return of -7.59% and -4.60% respectively.

The Treynors Ratio of ICIC is -20.94% and ADITYA BIRLA is -11.78% which states that for every one unit of systematic risk the excess return of ADITY BIRLA than risk free rate (i.e 6%) is a negative return of -20.94% and -11.78% respectively.

The Jensen Ratio of ICICI is -4.28% and ADITYA BIRLA is -2.98%which states that the deviation from expected return of ICICI and ADITYA BIRLA is -4.28% and -2.98% respectively. 68

TABLE SHOWING RETURN VALUES OF ICICI AND BIRLA SUNLIFE MUTUAL FUNDS (GROWTH SCHEME) FOR THE PERIOD APRIL-JUNE 2011 ICICI PRUDENTIAL NAV RETURN 46.4 3 46.8 6 0.93 46.9 5 0.19 46.9 3 -0.04 47.0 1 0.17 46.8 6 -0.32 46.6 3 -0.49 47.1 5 1.12 46.9 9 -0.34 46.5 9 -0.85 46.6 6 0.15 47.1 3 1.01 47.2 3 0.21 47.3 4 0.23 47.3 4 0.00 47.4 6 0.25 47.1 2 -0.72 46.7 6 -0.76 46.4 2 -0.73 45.7 8 -1.38 45.7 0.00

DATE 1-Apr-11 4-Apr-11 5-Apr-11 6-Apr-11 7-Apr-11 8-Apr-11 11-Apr-11 13-Apr-11 15-Apr-11 18-Apr-11 19-Apr-11 20-Apr-11 21-Apr-11 25-Apr-11 26-Apr-11 27-Apr-11 28-Apr-11 29-Apr-11 2-May-11 3-May-11 4-May-11

ADITYA BIRLA NIFTY NAV RETURN INDEX RETURN 260.69 5835 265.21 1.73 5842 0.12 266.4 0.45 5923.85 1.40 266.65 0.09 5908 -0.27 267.71 0.40 5888.55 -0.33 264.94 -1.03 5886.75 -0.03 263 -0.73 5805.35 -1.38 267.19 1.59 5747.95 -0.99 265.92 -0.48 5898.75 2.62 262.67 -1.22 5824.35 -1.26 263.06 0.15 5716 -1.86 267.65 1.74 5786.05 1.23 267.31 -0.13 5882.85 1.67 266.88 -0.16 5859.6 -0.40 266.84 -0.01 5876.85 0.29 265.94 -0.34 5884.2 0.13 264.08 -0.70 5851.35 -0.56 261.18 -1.10 5782.5 -1.18 258.9 -0.87 5766.9 -0.27 253.3 -2.16 5689.7 -1.34 251.8 -0.59 5567.7 -2.14 69

5-May-11 6-May-11 9-May-11 10-May-11 11-May-11 12-May-11 13-May-11 16-May-11 17-May-11 18-May-11 19-May-11 20-May-11 23-May-11 24-May-11 25-May-11 26-May-11 27-May-11 30-May-11 31-May-11 1-Jun-11 2-Jun-11 3-Jun-11 6-Jun-11 7-Jun-11 8-Jun-11 9-Jun-11

8 45.5 45.9 4 46.0 9 46.0 4 46.2 1 45.8 2 46.1 7 45.9 45.7 4 45.6 3 45.6 4 45.8 1 45.3 5 45.4 5 45.3 45.6 7 46.1 2 45.9 2 46.3 9 46.5 1 46.4 1 46.3 46.2 6 46.4 2 46.4 46.4

-0.61 0.97

248.9 252 252.15

-1.15 1.25 0.06

5531.6 5477.65 5575.2 5555.55 5547.2 5537.8 5492.35 5541.7 5496.1 5448.2 5448.15 5450.65 5456.7 5385.1 5389.1 5372.75 5413.7 5493.75 5492 5561.05 5529.9 5565.7 5504.3 5509.15 5535.25 5523.55

-0.65 -0.98 1.78 -0.35 -0.15 -0.17 -0.82 0.90 -0.82 -0.87 0.00 0.05 0.11 -1.31 0.07 -0.30 0.76 1.48 -0.03 1.26 -0.56 0.65 -1.10 0.09 0.47 -0.21

0.33 252.38 -0.11 253.41 0.37 250.33 -0.84 252.54 0.76 -0.58 -0.35 246.51 -0.24 246.78 0.02 248.68 0.37 244.41 -1.00 244.85 0.22 -0.33 0.82 248.52 0.99 248.44 -0.43 252.14 1.02 253.62 0.26 251.93 -0.22 -0.24 -0.09 252.32 0.35 -0.04 0.13 251.96 251.69 70 250.94 251.19 242.96 244.99 250.76 247.99

0.09 0.41 -1.22 0.88 -0.70 -1.10 -0.60 0.11 0.77 -1.72 0.18 -0.77 0.84 1.44 -0.03 1.49 0.59 -0.67 -0.39 0.10 0.45 -0.14 -0.11

10-Jun-11 13-Jun-11 14-Jun-11 15-Jun-11 16-Jun-11 17-Jun-11 20-Jun-11 21-Jun-11 22-Jun-11 23-Jun-11 24-Jun-11 27-Jun-11 28-Jun-11 29-Jun-11 30-Jun-11

6 46.3 6 46.4 3 46.7 1 46.5 9 46.4 7 46.2 3 45.7 45.7 2 45.7 8 45.8 3 46.4 8 46.9 2 47.0 9 47.3 6 47.4 9

250.51 -0.22 250.39 0.15 251.59 0.60 249.88 -0.26 247.26 -0.26 246.16 -0.52 -1.15 0.04 239.86 0.13 240.75 0.11 246.81 1.42 249.94 0.95 250.91 0.36 252.99 0.57 253.6 0.27 0.24 5614.5 0.86 0.83 5566.5 0.32 0.39 5548.85 1.98 1.27 5441.2 1.83 2.52 5343.4 1.41 0.37 5269.1 -0.67 -0.43 5304.65 0.45 240.88 240.9 -0.44 -2.14 0.01 5412.5 5372.2 5280.8 -0.13 -0.74 -1.70 -1.05 5419.65 -1.36 -0.68 5494.45 0.16 0.48 5485.6 0.29 -0.05 5469.85 -0.87 -0.47 5518.05 -0.10

Source: www.nseindia.com

71

Source: www.nseindia.com

72

TABLE SHOWING PARAMETERS OF ICICI AND BIRLA SUNLIFE MUTUAL FUNDS (GROWTH SCHEME) FOR THE PERIOD APRIL-JUNE 2011 PARAMETER RETURN RISK COVARIANCE BETA SHARPES RATIO JENSEN RATIO TREYNOR RATIO INTERPRETATION: The return of ICICI Fund is 0.04% whereas return of ADITYA BIRLA Fund is -0.04% whereas return of NIFTY is -0.06% out of which ADITYA BITLA is somewhat near to NIFTY. The risk of ICICI Fund is 0.60% and ADITYA BIRLA is 0.94% whereas risk of NIFTY is 1.02% which states that the risk is higher in NIFTY compared to ICICI and ADITYA BIRLA. The Sharpes Ratio of ICICI is 9.96% and ADITYA BIRLA is -6.39% which states that for every one unit of total risk the excess return of ADITYA BIRLA than risk free rate (i.e 6%) is a negative return of -9.96% and -6.39% respectively. The Treynors Ratio of ICIC is -34.70% and ADITYA BIRLA is -19.11% which states that for every one unit of systematic risk the excess return of ADITY BIRLA than risk free rate (i.e 6%) is a negative return of -34.70% and -19.11% respectively. The Jensen Ratio of ICICI is -4.92% and ADITYA BIRLA is -4.13%which states that the deviation from expected return of ICICI and ADITYA BIRLA is -4.92% and -4.13% respectively. ICICI PRUDENTIAL 0.04 0.60 0.17 0.17 -9.96 -4.92 -34.70 ADITYA BIRLA -0.04 0.94 0.31 0.32 -6.39 -4.13 -19.11 NIFTY -0.06 1.02

73

TABLE SHOWING RETURN VALUES OF ICICI AND BIRLA SUNLIFE MUTUAL FUNDS (GROWTH SCHEME) FOR THE PERIOD JULY-SEPTEMBER 2011 ICICI PRUDENTIAL NAV RETURN 47.5 5 47.8 4 0.61 47.8 1 -0.06 47.8 5 0.08 48.3 5 1.04 48.2 -0.31 48.0 2 -0.37 47.5 8 -0.92 47.9 6 0.80 48.1 7 0.44 48.3 4 0.35 48.4 0.12 48.4 7 0.14 48.3 5 -0.25 48.2 6 -0.19 48.9 3 1.39 49.1 1 0.37 48.6 8 -0.88 48.6 -0.16 48.2 9 -0.64 48.2 1 -0.17 48.4 5 0.50 ADITYA BIRLA NIFTY NAV RETURN INDEX RETURN 253.45 5705.75 255.05 0.63 5679.55 -0.46 254.35 -0.27 5659.85 -0.35 254.66 0.12 5622.7 -0.66 258.35 1.45 5633.35 0.19 255.7 -1.03 5734.65 1.80 254.24 -0.57 5648.05 -1.51 250.96 -1.29 5556.9 -1.61 253.69 1.09 5542.05 -0.27 254.67 0.39 5569 0.49 254.2 -0.18 5602.95 0.61 253.48 -0.28 5581.75 -0.38 254.85 0.54 5569.85 -0.21 253.51 -0.53 5642.05 1.30 252.41 -0.43 5554.6 -1.55 256.65 1.68 5576.95 0.40 258.84 0.85 5633.8 1.02 255.07 -1.46 5688.45 0.97 254.55 -0.20 5588.55 -1.76 252.62 -0.76 5492.4 -1.72 252.56 -0.02 5479 -0.24 253.27 0.28 5527.5 0.89 74

Date 1-Jul-11 4-Jul-11 5-Jul-11 6-Jul-11 7-Jul-11 8-Jul-11 11-Jul-11 12-Jul-11 13-Jul-11 14-Jul-11 15-Jul-11 18-Jul-11 19-Jul-11 20-Jul-11 21-Jul-11 22-Jul-11 25-Jul-11 26-Jul-11 27-Jul-11 28-Jul-11 29-Jul-11 1-Aug-11

2-Aug-11 3-Aug-11 4-Aug-11 5-Aug-11 8-Aug-11 9-Aug-11 10-Aug-11 11-Aug-11 12-Aug-11 16-Aug-11 17-Aug-11 18-Aug-11 19-Aug-11 22-Aug-11 23-Aug-11 24-Aug-11 25-Aug-11 26-Aug-11 29-Aug-11 30-Aug-11 2-Sep-11 5-Sep-11 6-Sep-11 7-Sep-11 8-Sep-11

48.2 1 48.0 4 47.5 8 47.1 4 46.8 4 46.5 47 46.7 5 46.4 6 46.2 7 46.0 8 45.5 1 45.0 1 45.3 5 45.6 5 45.3 9 45.1 9 44.5 7 45.3 4 45.7 8 45.9 1 45.9 1 46.0 7 46.4 7 46.5 8

249.82 -0.50 247.8 -0.35 245.96 -0.96 241.47 -0.92 238.1 -0.64 -0.73 1.08 -0.53 235.52 -0.62 233.73 -0.41 232.82 -0.41 228.39 -1.24 223.67 -1.10 224.77 0.76 227.1 0.66 225.36 -0.57 223.04 -0.44 219.04 -1.37 225.32 1.73 228.51 0.97 229.95 0.28 229.03 0.00 230.51 0.35 232.96 0.87 234.44 0.24 75 0.64 5139.2 1.16 1.06 5080.15 1.74 0.65 4993.35 -0.11 -0.40 4998.9 -2.17 0.63 5109.8 2.75 1.42 4973.25 3.48 2.87 4806.2 -0.68 -1.79 4839.25 -1.53 -1.03 4914.65 -0.40 -0.77 4934.35 0.19 1.04 4925.15 1.68 0.49 4843.7 -0.32 -2.07 4859.3 -4.31 -1.90 5077.95 0.95 -0.39 5030.3 -1.86 -0.76 5125.75 -1.32 -0.83 5194.4 1.29 235.67 239.21 237.5 -1.40 -1.02 1.50 -0.71 5083.85 4947.9 5196.55 5128 -2.32 -2.67 5.03 -1.32 -1.83 5204.35 -3.84 -0.74 5412.4 0.19 -0.81 5402 -1.66 -1.36 5493.2 -0.62

9-Sep-11 12-Sep-11 13-Sep-11 14-Sep-11 15-Sep-11 16-Sep-11 19-Sep-11 20-Sep-11 21-Sep-11 22-Sep-11 23-Sep-11 26-Sep-11 27-Sep-11 28-Sep-11 29-Sep-11 30-Sep-11

46.2 7 45.5 6 45.6 5 45.9 1 46.2 3 46.2 9 46.0 4 46.4 8 46.5 45.4 7 45.4 45.1 2 45.7 45.5 5 45.6 2 45.1 3

231.02 -0.67 225.97 -1.53 226.21 0.20 227.8 0.57 230.66 0.70 231.17 0.13 229.45 -0.54 232.72 0.96 0.04 -2.22 -0.15 -0.62 1.29 -0.33 227.46 0.15 225.85 -1.07 -0.71 4990.15 1.34 0.64 4924.2 -1.62 233.37 226.07 224.23 222.34 226.86 226.02 1.43 0.28 -3.13 -0.81 -0.84 2.03 -0.37 5042.55 5153.75 5054.45 4873.75 4878.6 4905.15 5005.5 -0.51 2.21 -1.93 -3.58 0.10 0.54 2.05 -0.74 5068.4 -1.07 0.22 5123.35 1.20 1.26 5062.35 1.96 0.70 4965.05 -0.26 0.11 4977.8 -0.08 -2.19 4981.7 -3.48 -1.46 5161.3 0.43

Source: www.nseindia.com

76

Source: www.nseindia.com

77

TABLE SHOWING PARAMETERS OF ICICI AND BIRLA SUNLIFE MUTUAL FUNDS (GROWTH SCHEME) FOR THE PERIOD JULY-SEPTEMBER 2011 ICICI PRUDENTIAL -0.08 0.77 0.61 0.36 -7.89 -3.83 -16.76 ADITYA BIRLA NIFTY -0.18 -0.20 1.15 1.76 1.00 0.60 -5.38 -2.48 -10.35

PARAMETER RETURN RISK COVARIANCE BETA SHARPES RATIO JENSEN RATIO TREYNORS RATIO

INTERPRETATION: The return of ICICI Fund is -0.08% whereas return of ADITYA BIRLA Fund is -0.18% whereas return of NIFTY is -0.20% out of which ADITYA BITLA is somewhat near to NIFTY. The risk of ICICI Fund is 0.77% and ADITYA BIRLA is 1.15% whereas risk of NIFTY is 1.76% which states that the risk is higher in NIFTY compared to ICICI and ADITYA BIRLA. The Sharpes Ratio of ICICI is 7.89% and ADITYA BIRLA is -5.38% which states that for every one unit of total risk the excess return of ADITYA BIRLA than risk free rate (i.e 6%) is a negative return of -7.89% and -5.38% respectively. The Treynors Ratio of ICIC is -16.76% and ADITYA BIRLA is -10.35% which states that for every one unit of systematic risk the excess return of ADITY BIRLA than risk free rate (i.e 6%) is a negative return of -16.67% and -10.35% respectively. The Jensen Ratio of ICICI is -3.83% and ADITYA BIRLA is -2.48%which states that the deviation from expected return of ICICI and ADITYA BIRLA is -3.83% and -2.48% respectively.

78

TABLE SHOWING RETURN VALUES OF ICICI AND BIRLA SUNLIFE MUTUAL FUNDS (GROWTH SCHEME) FOR THE PERIOD OCTOBER-DECEMBER 2011 ICICI PRUDENTIAL ADITYA BIRLA NIFTY NAV RETURN NAV RETURN INDEX RETURN 44.59 222.18 4874.4 44.04 218.51 -1.23 -1.65 4823.5 -1.04 43.94 217.38 -0.23 -0.52 4791.3 -0.67 44.4 221.17 1.05 1.74 4883.65 1.93 44.94 224.58 1.22 1.54 4886.85 0.07 44.9 -0.09 224.75 0.08 5019.9 2.72 45.46 1.25 229.19 1.98 5011.2 -0.17 45.43 -0.07 228.68 -0.22 5130.8 2.39 45.67 0.53 230.82 0.94 5057.35 -1.43 45.71 0.09 230.45 -0.16 5156.2 1.95 45.28 -0.94 227.23 -1.40 5049.45 -2.07 45.79 1.13 230.93 1.63 5080.45 0.61 45.63 -0.35 229.53 -0.61 5086.55 0.12 45.44 -0.42 228.28 -0.54 5106.6 0.39 45.62 0.40 229.24 0.42 5114.7 0.16 45.8 0.39 231.35 0.92 5137.9 0.45 46.47 1.46 237.68 2.74 5341.9 3.97 46.43 -0.09 236.52 -0.49 5358.9 0.32 46.54 0.24 233.94 -1.09 5278.6 -1.50 46.55 233.4 0.02 -0.23 5216.75 -1.17 46.75 0.43 234.32 0.39 5241.55 0.48 46.86 0.24 235.46 0.49 5325.4 1.60 46.89 236.01 0.06 0.23 5292.25 -0.62 46.45 232.86 -0.94 -1.33 5309.7 0.33 46.21 230.25 -0.52 -1.12 5159.75 -2.82 46.13 229.29 -0.17 -0.42 5217.35 1.12 45.62 225.09 -1.11 -1.83 5131.2 -1.65 45.48 223.64 -0.31 -0.64 5059.1 -1.41 45.04 220.44 -0.97 -1.43 5027.1 -0.63 44.86 218.73 -0.40 -0.78 4899.15 -2.55 44.32 214.31 -1.20 -2.02 4873.8 -0.52 44.34 214.89 0.05 0.27 4794.85 -1.62 43.85 -1.11 210.91 -1.85 4779.5 -0.32 44.21 0.82 213.14 1.06 4707.55 -1.51 44.34 212.1 0.29 -0.49 4731.3 0.50 44.95 1.38 216.49 2.07 4769.3 0.80 79

Date 3-Oct-11 4-Oct-11 5-Oct-11 7-Oct-11 10-Oct-11 11-Oct-11 12-Oct-11 13-Oct-11 14-Oct-11 17-Oct-11 18-Oct-11 19-Oct-11 20-Oct-11 21-Oct-11 24-Oct-11 25-Oct-11 28-Oct-11 31-Oct-11 1-Nov-11 2-Nov-11 3-Nov-11 4-Nov-11 8-Nov-11 9-Nov-11 11-Nov-11 14-Nov-11 15-Nov-11 16-Nov-11 17-Nov-11 18-Nov-11 21-Nov-11 22-Nov-11 23-Nov-11 24-Nov-11 25-Nov-11 28-Nov-11

29-Nov-11 30-Nov-11 1-Dec-11 2-Dec-11 5-Dec-11 7-Dec-11 8-Dec-11 9-Dec-11 12-Dec-11 13-Dec-11 14-Dec-11 15-Dec-11 16-Dec-11 19-Dec-11 20-Dec-11 21-Dec-11 22-Dec-11 23-Dec-11 26-Dec-11 27-Dec-11 28-Dec-11 29-Dec-11 30-Dec-11

44.64 44.64 45.06 45.65 45.72 45.75 45.22 44.83 44.25 44.33 44.13 43.97 43.53 43.1 42.6 43.36 43.5 43.36 43.61 43.44 43.15 42.97 43.06

-0.69 0.00 0.94 1.31 0.15 0.07 -1.16 -0.86 -1.29 0.18 -0.45 -0.36 -1.00 -0.99 -1.16 1.78 0.32 -0.32 0.58 -0.39 -0.67 -0.42 0.21

214.67 215.39 218.41 222.26 221.58 222.16 217.61 214.97 211.05 212.01 210.35 209.12 205.7 203.45 200.85 205.03 205.96 205.47 207.56 206.42 204.44 203 203.23

-0.84 0.34 1.40 1.76 -0.31 0.26 -2.05 -1.21 -1.82 0.45 -0.78 -0.58 -1.64 -1.09 -1.28 2.08 0.45 -0.24 1.02 -0.55 -0.96 -0.70 0.11

4864.2 4766.15 4970.85 4940.85 5036.5 5050.1 5037.4 4870.75 4906.85 4733.6 4788.7 4712.8 4752.5 4623.15 4635.8 4636.45 4636.9 4763.2 4718.15 4780.2 4756.2 4681.15 4659.95

1.99 -2.02 4.29 -0.60 1.94 0.27 -0.25 -3.31 0.74 -3.53 1.16 -1.58 0.84 -2.72 0.27 0.01 0.01 2.72 -0.95 1.32 -0.50 -1.58 -0.45

Source: www.nseindia.com

80

Source: www.nseindia.com 81

TABLE SHOWING PARAMETERS OF ICICI AND BIRLA SUNLIFE MUTUAL FUNDS (GROWTH SCHEME) FOR THE PERIOD OCTOBERDECEMDER 2011

PARAMETER RETURN RISK COVARIANCE BETA SHARPES RATIO JENSEN RATIO TREYNOR RATIO INTERPRETATION:

ICICI PRUDENTIAL -0.06 0.78 0.36 0.23 -7.73 -4.69 -26.79

ADITYA BIRLA -0.15 1.18 0.59 0.37 -5.20 -3.88 -16.42

NIFTY -0.06 1.67

The return of ICICI Fund is -0.06% whereas return of ADITYA BIRLA Fund is -0.15% whereas return of NIFTY is -0.06% out of which ADITYA BITLA is somewhat near to NIFTY.

The risk of ICICI Fund is 0.78% and ADITYA BIRLA is 1.18% whereas risk of NIFTY is 1.67% which states that the risk is higher in NIFTY compared to ICICI and ADITYA BIRLA.

The Sharpes Ratio of ICICI is 7.73% and ADITYA BIRLA is -5.20% which states that for every one unit of total risk the excess return of ADITYA BIRLA than risk free rate (i.e 6%) is a negative return of -7.73% and -5.20% respectively.

The Treynors Ratio of ICIC is -26.79% and ADITYA BIRLA is -16.42% which states that for every one unit of systematic risk the excess return of ADITY BIRLA than risk free rate (i.e 6%) is a negative return of -26.79% and -16.42% respectively.

The Jensen Ratio of ICICI is -4.69% and ADITYA BIRLA is -3.88%which states that the deviation from expected return of ICICI and ADITYA BIRLA is -4.69% and -3.88% respectively.

82

TABLE SHOWING RETURN VALUES OF ICICI AND BIRLA SUNLIFE MUTUAL FUNDS (GROWTH SCHEME) FOR THE PERIOD JANUARY-MARCH 2012 ICICI PRUDENTIAL ADITYA BIRLA NIFTY NAV RETURN NAV RETURN INDEX RETURN 43.01 203.16 4640.2 43.82 1.88 207.72 2.24 4675.8 0.77 43.74 -0.18 207.59 -0.06 4774.95 2.12 43.81 0.16 207.53 -0.03 4749 -0.54 43.65 -0.37 206.86 -0.32 4724.15 -0.52 43.64 207.47 -0.02 0.29 4747.55 0.50 44.17 211.33 1.21 1.86 4771.85 0.51 44.25 212 0.18 0.32 4863.15 1.91 44.08 211.55 -0.38 -0.21 4840.95 -0.46 44.25 213.03 0.39 0.70 4861.95 0.43 44.2 213.4 -0.11 0.17 4844 -0.37 44.91 1.61 216.49 1.45 4904.5 1.25 44.57 -0.76 215.98 -0.24 4977.75 1.49 44.9 0.74 218.71 1.26 4995 0.35 45.21 0.69 220.18 0.67 5044.85 1.00 45.24 0.07 220.08 -0.05 5025.35 -0.39 45.62 0.84 223.07 1.36 5064.8 0.79 45.8 0.39 225.11 0.91 5151.5 1.71 46.03 0.50 227.21 0.93 5216.75 1.27 45.5 -1.15 223.14 -1.79 5163.55 -1.02 46.15 1.43 227.89 2.13 5125.25 -0.74 46.51 229.64 0.78 0.77 5198.15 1.42 46.81 231.09 0.65 0.63 5272.1 1.42 47.08 233.62 0.58 1.09 5276.1 0.08 47.59 235.86 1.08 0.96 5379.45 1.96 47.5 235.31 -0.19 -0.23 5412.95 0.62 47.68 0.38 236.43 0.48 5343.8 -1.28 48.02 0.71 237.61 0.50 5343.05 -0.01 48.29 0.56 236.99 -0.26 5399.8 1.06 48.49 0.41 236.92 -0.03 5382.1 -0.33 48.61 0.25 237.98 0.45 5380.8 -0.02 49.19 1.19 243.52 2.33 5460.6 1.48 49.29 243.3 0.20 -0.09 5513.75 0.97 49.48 0.39 244.86 0.64 5574.2 1.10 49.59 0.22 245.57 0.29 5561.9 -0.22 49.01 239.6 -1.17 -2.43 5609.75 0.86 83

Date 2-Jan-12 3-Jan-12 4-Jan-12 5-Jan-12 6-Jan-12 9-Jan-12 10-Jan-12 11-Jan-12 12-Jan-12 13-Jan-12 16-Jan-12 17-Jan-12 18-Jan-12 19-Jan-12 20-Jan-12 23-Jan-12 24-Jan-12 25-Jan-12 27-Jan-12 30-Jan-12 31-Jan-12 1-Feb-12 2-Feb-12 3-Feb-12 6-Feb-12 7-Feb-12 8-Feb-12 9-Feb-12 10-Feb-12 13-Feb-12 14-Feb-12 15-Feb-12 16-Feb-12 17-Feb-12 21-Feb-12 22-Feb-12

23-Feb-12 48.79 24-Feb-12 48.51 27-Feb-12 47.84 28-Feb-12 48.49 29-Feb-12 48.79 1-Mar-12 48.59 2-Mar-12 48.57 5-Mar-12 48.26 6-Mar-12 48.13 7-Mar-12 47.98 9-Mar-12 48.49 12-Mar-12 48.63 13-Mar-12 48.9 14-Mar-12 49.04 15-Mar-12 48.69 16-Mar-12 48.43 19-Mar-12 48.35 20-Mar-12 48.41 21-Mar-12 48.83 22-Mar-12 48.17 23-Mar-12 48.5 26-Mar-12 47.94 27-Mar-12 48.21 28-Mar-12 47.89 29-Mar-12 47.94 30-Mar-12 48.73 Source: www.nseindia.com

-0.45 -0.57 -1.38 1.36 0.62 -0.41 -0.04 -0.64 -0.27 -0.31 1.06 0.29 0.56 0.29 -0.71 -0.53 -0.17 0.12 0.87 -1.35 0.69 -1.15 0.56 -0.66 0.10 1.65

238.75 236.49 230.7 235.73 237.35 235.43 236.1 232.94 231.04 230.94 235.75 237.58 240.64 241.43 238.58 236.64 234 234.43 238.23 232.87 235 231.26 232.54 231.43 231.21 236.56

-0.35 -0.95 -2.45 2.18 0.69 -0.81 0.28 -1.34 -0.82 -0.04 2.08 0.78 1.29 0.33 -1.18 -0.81 -1.12 0.18 1.62 -2.25 0.91 -1.59 0.55 -0.48 -0.10 2.31

5490.05 5479.15 5448.1 5310.5 5424.95 5366 5369.45 5342.55 5266 5207.05 5294.1 5420.1 5391.05 5490.55 5462.5 5380.35 5337.35 5257.15 5267.2 5361.1 5255.65 5274.35 5242.95 5231.7 5145.95 5206.6

-2.13 -0.20 -0.57 -2.53 2.16 -1.09 0.06 -0.50 -1.43 -1.12 1.67 2.38 -0.54 1.85 -0.51 -1.50 -0.80 -1.50 0.19 1.78 -1.97 0.36 -0.60 -0.21 -1.64 1.18

84

Source: www.nseindia.com 85

TABLE SHOWING PARAMETERS OF ICICI AND BIRLA SUNLIFE MUTUAL FUNDS (GROWTH SCHEME) FOR THE PERIOD JANUARY-MARCH 2012 PARAMETER RETURN RISK COVARIANCE BETA SHARPES RATIO JENSEN RATIO TREYNORS RATIO ICICI PRUDENTIAL 0.21 0.75 0.20 0.17 -7.68 -4.80 -33.88 ADITYA BIRLA 0.26 1.15 0.29 0.25 -5.00 -4.28 -22.75 NIFTY 0.20 1.20

INTERPRETATION: The return of ICICI Fund is 0.21% whereas return of ADITYA BIRLA Fund is -0.26% whereas return of NIFTY is 0.20% out of which ADITYA BITLA is somewhat near to NIFTY. The risk of ICICI Fund is 0.75% and ADITYA BIRLA is 1.15% whereas risk of NIFTY is 1.20% which states that the risk is higher in NIFTY compared to ICICI and ADITYA BIRLA. The Sharpes Ratio of ICICI is 7.68% and ADITYA BIRLA is -5.00% which states that for every one unit of total risk the excess return of ADITYA BIRLA than risk free rate (i.e 6%) is a negative return of -7.68% and -5.00% respectively. The Treynors Ratio of ICIC is -33.88% and ADITYA BIRLA is -4.28% which states that for every one unit of systematic risk the excess return of ADITY BIRLA than risk free rate (i.e 6%) is a negative return of -33.88% and -4.28% respectively. The Jensen Ratio of ICICI is -4.80% and ADITYA BIRLA is -4.28%which states that the deviation from expected return of ICICI and ADITYA BIRLA is -4.80% and -4.28% respectively.

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FINDINGS
1. By evaluating the parameters Sharpes Ratio of ICICI is -9.22% and ADITYA BIRLA is -6.17% which states that for every one unit of total risk the excess return of ADITYA BIRLA than risk free rate (i.e 6%) is a negative return of -9.22% and -6.17% respectively for the period January to march 2010. 2. By evaluating the parameters Treynors Ratio of ICICI is -62.65% and ADITYA BIRLA is -41.81% which states that for every one unit of systematic risk the excess return of ADITYA BIRLA than risk free rate (i.e 6%) is a negative return of -62.65% and -41.81% for the period January to march 2010. 3. By evaluating the parameters Jensen Ratio of ICICI is -5.38% and ADITYA BIRAL is -5.14%which states that the deviation from expected return of ICICI and ADITYA BIRLA is -5.38% and 5.14% respectively for the period January to march 2010. 4. By evaluating the parameters return of ICICI Fund is -0.06% whereas return of ADITYA BIRLA Fund is -0.15% whereas return of NIFTY is -0.06% out of which ADITYA BIRLA is somewhat near to NIFTY for the period October to decemder-2011. 5. By evaluating the parameters The risk of ICICI Fund is 0.78% and ADITYA BIRLA is 1.18% whereas risk of NIFTY is 1.67% which states that the risk is higher in NIFTY compared to ICICI and ADITYA BIRLA for the period October to decemder-2011. 6. By evaluating the parameters Sharpes Ratio of ICICI is 7.73% and ADITYA BIRLA is -5.20% which states that for every one unit of total risk the excess return of ADITYA BIRLA than risk free rate (i.e 6%) is a negative return of -7.73% and -5.20% respectively for the period October to decemder-2011. 7. By evaluating the parameters Treynors Ratio of ICIC is -26.79% and ADITYA BIRLA is -16.42% which states that for every one unit of systematic risk the excess return of ADITY BIRLA than risk free rate (i.e 6%) is a negative return of -26.79% and -16.42% respectively for the period October to decemder-2011. 87

CONCLUSIONS
1. According to the data analysis, the return of the ICICI and ADITYA BIRLA growth fund is higher than the NIFTY return. 2. According to the data analysis, the risk of ICICI and ADITYA BIRLA is less when compared to NIFTY. 3. The sharpes ratio of ICICI and ADITYA BIRLA growth fund is negative in all the years. 4. The treynors ratio of ICICI and ADITYA BIRLA growth fund is fluctuating in all the years. 5. The Jensens ratio of ICICI and ADITYA BIRLA growth fund is negative in all the years. 6. By observing the data analysis it is better to invest in the ICICI and ADITYA BIRLA growth fund. 7. The mutual fund company must know about the risk and return. 8. The mutual fund company, which takes high risk, and involves in taking of high return. 9. The mutual fund company, which takes low risk, and involves in taking of low return.

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SUGGESTIONS
1. Any investor who wants to invest in the mutual funds they must go for professional investment process to achieve the objectives. 2. Investors much know about Mutual funds. 3. Investor should have to see the performance of mutual funds before investing. 4. They have to see the past records of the mutual funds. 5. Compare with other mutual funds companies. 6. See whether they have been giving any security on our investments. 7. Growth rate of the dividend. 8. See whether the % of NAVs is continuously increasing or not. 9. They have to know more about past records and there performance of the mutual funds managers. 10. Select right mutual funds which should have less risk and high profits. 11. See whether any fluctuations in the Dividends. 12. Select those mutual funds which give high returns with low investments.

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BIBLIOGRHAPHY
REFERENCES Prasanna Chandra - Investment Analysis and Portfolio Management, Tate McGraw Hill Education Private Limited, Third Edition. Punithavathy Pandian, Security Analysis and Portfolio Management, Vikas Publishing House Pvt Ltd. Financial Markets & Services Natrajan & Gordan., Himalaya Publications. Financial Instrumental Markets & Services L.M. BHOLE TATA Mc. GrawHill. WEBSITES 1) www.google.com 2) www.icicipru.com 3) www.amfiindia.com 4) www.nseindia.com 5) www.birlasunlife.com

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