Draft report: Measuring and evaluating performance of focus equity
schemes
Measuring and evaluating performance of focus equity Schemes
Identifying and classifying equity schemes by category/investment objectives
Comparing these schemes within specific category and with benchmark on various parameters
Attribution analysis of all the above identified schemes
Preparing a report with the observations and conclusions basis the findings from above
Report
1) Objectives( defne broader objective of the report as specifed in the earlier mail)
-Then divide into sub categories viz Large ap !unds"#iversifed !unds etc
$) Tools used for comparison( %ention the !act that &ou are using '(L)* *+press soft,are and
mention the name of the specifc performance comparison tool-sa& bar chart"ratio anal&sis table
etc)
-) %ention the choice list of schemes in each categor&
.) /nsert the chart0table 0graph for comparison in the anal&sis of each categor&12elo, each graph or
table "mention the observations
and inference0conclusion
3) (t the end of each chapter sa& large cap"midcap etc "mention the overall conclusion
Introduction
The Mutual Funds Industry in India, as of July 2014, has approximately 10 lakh Crore Assets under Manaement
!AMFI, 2014"# $ut of this, e%uity&oriented s'hemes a'ross funds 'ommand total A(M of )s 2#2 lakh Crore, or
approximately 22*# The purpose of this report is to o+,e'ti-ely measure and e-aluate the performan'e of sele'ted
e%uity fo'used s'hemes o-er the last fi-e years# The s'hemes are rouped and analy.ed /ith peers of the same asset
'lass, in-estment pattern and in-estment o+,e'ti-e in order to deri-e a +etter pi'ture of their o-erall performan'e#
Furthermore, this report /ill attempt to analy.e the se'tor /ise +reakdo/n of 012 3la'k)o'k promoted funds and link
them to any ma,or 'hanes in performan'e -is&4&-is the appli'a+le peer roup and index#
Selection and Analysis Criteria
The funds sele'ted fall into four +road in-estment 'ateories5 6are Cap, Mid 7 1mall Cap, Infrastru'ture and
0i-ersified# The funds 'hosen for ea'h 'ateory /ere sele'ted /ith t/o 'riteria5 A(M -alue and ae# The funds short&
listed are 'onse%uently +oth the larest and most popular funds as /ell as some of the most -enera+le# The funds are
'ompared to the 819 +en'hmark, C8: 8IFT;, as /ell as a 'ateory appropriate +en'hmark to +etter refle't their
performan'e 'ompared to the o-erall market as /ell as /ithin their spe'ifi' 'ateory#
The timeframe sele'ted, < years from July 200= to July 2014, allo/s for a lon&term performan'e analysis# It also
'oin'ides rouhly /ith the term of the pre-ious o-ernment, the ele'tion of the ne/ one and the tumultuous times in
+et/een, thus allo/in for some interestin o+ser-ations# The tool used to a''umulate the data and 'ompare the
performan'e is the F9 Analyti's soft/are usin the Indian Mutual >alue )esear'h 0ata+ase#
Method5
The data /ill +e analy.ed usin -arious parameters to i-e a 'omprehensi-e pi'ture of the funds respe'ti-e
performan'es# The follo/in tools /ill +e used5
Performance Tables are the most +asi' indi'ation of the funds performan'es in the i-en timeframe# The raphi'al
representation of the funds performan'es 'an +e 'ompared easily as /ell as the o-erall rise in the -alue of the fund in
the period taken# Rolling Charts paint a more a''urate and pre'ise pi'ture of the a'tual performan'e of the funds +y
a-erain returns on a month&to&month +asis# Bar Charts ela+orate on this +y usin the rollin 12&month return to
-isally depi't the indi-idual funds performan'e e-ery month# Scatter Charts hihliht the )isk -s# )eturn of ea'h of
the funds# SIP Charts indi'ate the returns that a systemati' in-estment plan that starts out /ith )s <000 and in-ests )s
<000 e-ery month /ould enerate# The Performance Table ela+orates on the performan'e 'hart +y i-in the total
)$I from -arious time periods to date# Ratio Tables 'ontain key information and ratios that i-e a +roader perspe'ti-e
on the funds# The Holdings Comparison details the -arious se'urities that ea'h fund holds# Finally, the Correlation
Table lists the 'orrelation +et/een the listed funds and the respe'ti-e indi'es#
Furthermore, the funds promoted +y 012 3la'k)o'k /ill +e analy.ed further usin the histori'al +reakdo/n of the
holdins /hi'h may 'ast some liht on the se'toral 'ontri+utions to the funds performan'e#
6are Cap
This report /ill analy.e < ma,or funds in the 6are Cap 'ateory, namely, A" ICICI 2rudential Fo'used 3lue'hip
9%uity Fund, 3" (TI $pportunities Fund, C" ?0FC Top 200 Fund, 0" Franklin Templeton Franklin India 3lue'hip
Fund and 9" 012 3la'k)o'k Top 100 9%uity Fund# The +en'hmarks used for 'omparision are the 819 C8: 8IFT;
and the 819 C8: 100#
2erforman'e Chart5
The performan'e 'hart paints a positi-e pi'ture for all the s'hemes 'on'erned as /ell as the t/o indi'es# 2rima fa'ie,
there seems to +e a stron relation +et/een the funds and the indi'es, due to the o-er/helmin representation of 6are
Cap sto'ks in the 8IFT; index# The eneral trends in this raph indi'ate that the funds sa/ a ro'ky rise in -alue until
the third %uarter of a''ountin year 2010&11 !hen'eforth referred to as simply @yearA unless spe'ified other/ise", after
/hi'h there is a steady do/n/ard trend until Jan A12# That month sa/ a sharp up ti'k /hi'h remained steady for a fe/
months until a steady rise in fund performan'e until May A14# May A14 sa/ a massi-e in'rease in -alue for funds as
/ell as the indi'es from a rane of 4<&=0* to an impressi-e 12B&C0* in a matter of /eeks, possi+ly due to the massi-e
ele'toral -i'tory +y a 8arendra Modi&led 80A# The funds ha-e 'ontinued to reister steadily risin ains sin'e then#
An analysis of the indi-idual funds re-eals that ICICI 2rudential has 'onsistently +een the +est performin fund for
nearly the entire period, /ith the final )$I at 121* in July @14, as opposed to a D0&D<* ain for the t/o +en'hmark
indi'es# (TI also performs impressi-ely reisterin an in'rease of 111* o-er < years# ?0FC, /hile sustainin a
medio're performan'e from Jan A12 on/ards, reistered the sharpest rise of any fund in May A14, /ith a 40* in'rease#
2urely in terms of total )$I, 012 3la'k)o'k has +een the /orst performin fund amonst the < for the < year period#
)ollin Chart
The rollin 'hart sheds some more liht on the relati-e performan'e of the 'ompanies# It is adfa
3ar Chart
1'atter Chart
1I2 Chart
2erforman'e Ta+le
)atio Ta+le
?oldins Comparison
!Appendix A"
Correlation Ta+le
Name
DSP
BlackRock -
Top 100
Equity
Regular Gth
TR(RO! i"
N
#ra"kli"
Templeto" -
#ra"kli" "$ia
Bluechip Gth
TR(RO! i"
N
%D#& -
Top '00
Gth
TR(RO! i"
N
&&
Pru$e"tial -
#ocu(e$
Bluechip
Equity
Regular Gth
TR(RO! i"
N
NSE &N)
100
TR(RO! i"
N
NSE &N)
N#T*
TR(RO! i"
N
+T -
Opportu"itie(
Gth TR(RO! i"
N
DSP BlackRock
Top 100 Equity
Regular Gth
TR(RO! i" N
0,-. 0,-. 0,-/ 0,-. 0,-. 0,-/
#ra"kli"
Templeto"
#ra"kli" "$ia
Bluechip Gth
TR(RO! i" N
0,-. 0,-0 0,-0 0,-1 0,-0 0,-/
%D#& Top '00
Gth TR(RO! i"
N
0,-. 0,-0 0,-0 0,-0 0,-/ 0,-2
&& Pru$e"tial
#ocu(e$
Bluechip Equity
Regular Gth
TR(RO! i" N
0,-/ 0,-0 0,-0 0,-1 0,-1 0,-/
NSE &N) 100
TR(RO! i" N
0,-. 0,-1 0,-0 0,-1 1,00 0,-/
NSE &N)
N#T* TR(RO!
i" N
0,-. 0,-0 0,-/ 0,-1 1,00 0,-/
+T
Opportu"itie(
Gth TR(RO! i"
N
0,-/ 0,-/ 0,-2 0,-/ 0,-/ 0,-/
Mid and 1mall Cap
2erforman'e Chart
)ollin Chart
3ar Chart
1'atter Eraph
1I2 Chart
2erforman'e Ta+le
)atio Ta+le
?oldin Comparison
!Appendix 3"
Correlation Ta+le
Name
DSP
BlackRock
- Small a"$
3i$ &ap
Regular
Gth
TR(RO! i"
N
#ra"kli"
Templeto"
- #ra"kli"
"$ia Prima
Gth
TR(RO! i"
N
%D#& - 3i$
&ap
Opportu"itie(
Gth TR(RO!
i" N
&&
Pru$e"tial
- 4alue
Di(co5ery
Regular
Gth
TR(RO! i"
N
D#& -
Premier
Equity
Regular
Gth
TR(RO!
i" N
NSE
&N)
3i$cap
TR(RO!
i" N
NSE
&N)
N#T*
TR(RO!
i" N
Relia"ce -
Equity
Opportu"itie(
Ret Gth
TR(RO! i" N
DSP
BlackRock
Small a"$ 3i$
&ap Regular
Gth TR(RO!
i" N
0,-6 0,-. 0,-2 0,-2 0,-/ 0,1' 0,-6
#ra"kli"
Templeto"
#ra"kli" "$ia
Prima Gth
TR(RO! i" N
0,-6 0,-/ 0,-1 0,-6 0,-2 0,1/ 0,-'
%D#& 3i$
&ap
Opportu"itie(
Gth TR(RO!
i" N
0,-. 0,-/ 0,-2 0,-' 0,-. 0,1. 0,-2
&&
Pru$e"tial
4alue
Di(co5ery
Regular Gth
TR(RO! i" N
0,-2 0,-1 0,-2 0,-0 0,-2 0,12 0,-6
D#&
Premier
Equity
Regular Gth
TR(RO! i" N
0,-2 0,-6 0,-' 0,-0 0,-1 0,1' 0,-1
NSE &N)
3i$cap
TR(RO! i" N
0,-/ 0,-2 0,-. 0,-2 0,-1 0,10 0,-2
NSE &N)
N#T*
TR(RO! i" N
0,1' 0,1/ 0,1. 0,12 0,1' 0,10 0,-1
Relia"ce
Equity
Opportu"itie(
Ret Gth
TR(RO! i" N
0,-6 0,-' 0,-2 0,-6 0,-1 0,-2 0,-1
Infrastru'ture
2erforman'e Chart
)ollin Chart
3ar Chart
1'atter Chart
1I2 Chart
2erforman'e Ta+le
)atio Ta+le
