...Performance Evaluation of Finnish Mutual Funds 2014 TABLE OF CONTENT 1! ABSTRACT ............................................................................................... 1! 2! INTRODUCTION ..................................................................................... 2! 2.1.! Purpose ................................................................................................................. 2! 3! THE FINNISH FUND MARKET .............................................................. 3! 4! PREVIOUS RESEARCH ........................................................................... 5! 5! METHODOLOGY ..................................................................................... 8! 5.1.! Standard Deviation .............................................................................................. 8! 5.2.! Beta ....................................................................................................................... 8! 5.3.! Jensen Alpha ........................................................................................................ 9! 5.4.! Sharpe Ratio ....................................................................................................... 10! 5.5.! Treynor Ratio ..................................................................................................... 10! 5.6.! Hypothesis ........................................................................................................... 11! ...
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...863–876 Performance Evaluation of Mutual Funds in Pakistan S. M. AAMIR SHAH and SYED TAHIR HIJAZI* INTRODUCTION In Pakistan Mutual Funds were introduced in 1962, when the public offering of National Investment (Unit) Trust (NIT) was introduced which is an open-end mutual fund. In 1966 another fund that is Investment Corporation of Pakistan (ICP) was establishment. ICP subsequently offered a series of closed-end mutual funds. Up to early 1990s, twenty six (26) closed-end ICP mutual funds had been floated by Investment Corporation of Pakistan. After considering the option of restructuring the corporation, government decided to wind up ICP in June, 2000. In 2002, the Government started Privatisation of the Investment Corporation of Pakistan. 25 Out of 26 closed-end funds of ICP were split into two lots. There had been a competitive bidding for the privatisation of funds. Management Right of Lot-A comprising 12 funds was acquired by ABAMCO Limited. Out of these 12, the first 9 funds were merged into a single closed-end fund and that was named as ABAMCO Capital Fund, except 4th ICP mutual fund as the certificate holders of the 4th ICP fund had not approved the scheme of arrangement of Amalgamation into ABAMCO capital fund in their extra ordinary general meeting held on December 20, 2003. The fund has therefore been reorganised as a separate closedend trust and named as ABAMCO Growth Fund. Rest of the three funds were merged into another single and named as ABAMCO Stock Market Fund. So...
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...Analysis of Mutual Fund for SBI Mutual Fund and Securities Ltd. Final Managerial Economics Submitted by: SHUBHAM SHARMA Division: B Roll No: 42 Class: BBA.LLB PRN NO: 14010224105 OF Symbiosis Law School, NOIDA Symbiosis International University, PUNE In March 2015 Under the guidance of Prof. Sweta Saurabh & Prof Pushpa Negi Course in charge Index S.NO | PARTICULARS | PAGE NO. | 1. | C E R T I F I C A T E | 3 | 2. | ACKNOWLEDGEMENT | 4 | 3. | INTRODUCTION | 5-6 | 4. | HISTORY | 6 | 5. | DIFFERENT TYPES OF MUTUAL FUNDS | 6-8 | 6. | LITERATURE REVIEW | 8-11 | 7. | OBJECTIVES | 11 | 8. | RESEARCH HYPOTHESIS OF THE STUDY | 11 | 9. | ANALYSIS | 11-12 | 10. | CONCLUSION | 13 | 11. | REFERENCES | 14 | C E R T I F I C A T E The project entitled “Analysis of Mutual Fund for SBI Mutual Fund and Securities Ltd.” submitted to the Symbiosis Law School, NOIDA for Managerial Economis as part of Internal assessment is based on my original work carried out under the guidance of Dr.Pushpa Negi and Professor Sweta Saurabh from 17th December,2014 to 15th March ,2015. The research work has not been submitted elsewhere for award of any degree. The material borrowed from other sources and incorporated in the thesis has been duly acknowledged. I understand that I myself could be held responsible and accountable for plagiarism...
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...(level 3)6 Bibliography AMFI india. (2014). Retrieved May 2014, from AMFI: http://www.amfiindia.com Debashish, & SathyaSwaroop. (2009). Investigating Performance of Equity-based Mutual Fund Schemes in Indian Scenario. KCA Journal of Business Management . Desigan, e. a. (2006). Women Investors’ Perception towards Investment: An empirical Study. Indian Journal of Marketing . Ippolito, A. (1992). Consumer Reaction to Measure of Poor Quality: Evidence from the Mutual Fund Industry. Journal of Law and Economics . Jain, P., & Sondhi, H. (2011). Market Risk and Investment Performance of Equity Mutual Funds in India: Some Empirical Evidence. Finance India . Jayadev, M. (1996). Mutual Fund Performance: An Analysis of Monthly Returns. Finance India . Jha, B. K., & Singh, A. K. (2009). An empirical study on awareness & acceptability of mutual fund. Regional Student’s Conference, ICWAI. Money Control. (2014). Retrieved May 2014, from http://www.moneycontrol.com Murugaiah, V., & Anand, S. (2004). Marketing of financial services: strategic issues. SCMS Journal of Indian Management . PriceWaterCoopers. (2013). Retrieved April 2014, from http://www.pwc.in/en_IN/in/assets/pdfs/publications/2013/indian-mutual-fund-industry-fv.pdf Rao, D. N. (2006). Investment Styles and Performance of Equity Mutual Funds in India. Social Science Research...
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...year 1924. The creation of the Massachusetts Investors' Trust in Boston now known as Massachusetts Financial Services(MFS) heralded the arrival of the modern mutual fund in 1924. The case describes the compensation and performance management system at MFS. The company follows a subjective based compensation system for its employee. The senior management team introduced hedge funds at the firm, and it is a great opportunity to bring higher revenue. On introduction of hedge fund, the key problem management is facing is -How to compensate the Hedge fund manager. The question arises, will the typical hedge fund manager pay which is 20% of the upside harm the MFS culture of camaraderie. Also if they pay hedge fund manager on a prevalent subjective system, can they retain the hedge fund managers especially after an incident where 2 top performers in hedge fund left the company to start their own firm, in less than year the fund was made available to public. The company has closed down the hedge fund available to domestic institutional investment as it saw half of its hedge fund outflow with the exit of Stack and his former MFS Colleague. Mark Regan MFS veteran employee is chosen as the new manager and is heading current hedge fund which is available for offshore investors (B)Problem Essay: In 1924 the firm introduced mutual fund to its client by giving them opportunity to purchase and redeem share on demand. MFS was able to successfully achieve its first vision plan to capture the...
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...PORTFOLIO PERFORMANCE EVALUATION- LITERATURE REVIEW Deepa Chandrashekar Table of Contents 1. Introduction........................................................................................................................................... 2 2. Portfolio Returns Calculation................................................................................................................ 4 2.1. 2.2. Value weighted rate of return........................................................................................................ 6 2.3. 3. Time weighted rate of return......................................................................................................... 5 Internal rate of return .................................................................................................................... 6 Literature Review.................................................................................................................................. 7 3.1. Sharpe ratio ................................................................................................................................... 9 3.2. Sortino ratio ................................................................................................................................10 3.3. Treynor ratio ...............................................................................................................................12 3.4. Jensen ratio...
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...ICB Mutual Funds ICB Mutual Funds are also known as close ended Mutual Funds. The issued capital of a Mutual Fund is limited, that is, a Mutual Fund offers a limited number of certificates for sale to the public. The amount of capital and the number of certificates of each Mutual Fund remains unchanged. ICB Mutual Funds are independent of one another. A Mutual Fund being listed is traded on the Stock Exchanges. Price of Mutual Fund certificates after IPO is determined on the Stock Exchanges through interaction of supply and demand. The market price of a Mutual Fund certificates is available in Stock exchange quotations and in newspapers. Performances of ICB Mutual Fund The Considerations underlying the performance evaluation of mutual funds is a matter of concern to the fund managers, investors and researchers alike. The present paper attempts to answer two questions relating to mutual fund performance; 1. Whether the growth oriented Mutual Fund are earning higher returns than the benchmark returns (or market Portfolio/Index returns) in terms of risk. 2. Whether the growth oriented mutual funds are offering the advantages of Diversification, Market timing and Selectivity of Securities to their investors. This paper attempts to answer the questions raised, by initially describing some basic concepts and later by employing a methodology which was used by Sharpe (1966), Treynor (1965), and Jenson (1968) and finally given appropriate comments. ...
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...ReseaRch PaPeR Commerce Volume : 3 | Issue : 1 | January 2013 | ISSN - 2249-555X A Study About Awareness of Mutual Funds Among the Investors of Navsari District Keywords Mutual Funds, Investment alternatives, Investors’ perception. Dr. M. P. Desai Head, Department of Accountancy,Udhna Citizen Commerce College, Surat. Residence: 50,Niral Nivas, Ashapuri society,Vijalpore road, Navsari,396445, Gujarat. Mr. Mayur K Joshi Asst. Prof., Department of Accountancy,Udhna Citizen Commerce College, Surat. Residence: Vinay readymade, 7, shopping center,Dudhiya talav, Navsari,396445, Gujarat. ABSTRACT The financial securities include ownership securities (like shares, mutual fund units) and creditorship securities (like debentures, bonds). Ownership securities are more risky than creditorship securities. Investment decisions relating to ownership securities involve planning of investment strategies according to the extent of diversification desired by individuals. Investors can reduce risk and maximize returns by way of mutual fund investments, enjoying the expertise of professional fund management. In India, Mutual fund industry is an organised financial system, accessible to individual investors having varied needs and options. In order to identify awareness of mutual funds among the investors of Navsari District, a careful collection of primary data through questionnaire was made. Introduction Financial system comprises financial institutions, services, market and...
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...Absenteeism among the employees 10. A study on Training Effectiveness in the organization 11. A study on Credit Appraisal for Car loan financing in the finance companies. 12. A study on Consumer buying behavior towards two wheeler bikes. 13. A study on Effectiveness of Performance Management system among the employees 14. A study on Effectiveness of Quality Initiativeness among the employees. 15. A study on Safety , Welfare and Health among the employees. 16. A study on Training and Recreation programmes among the employees. 17. A study on the investor behavior towards the mutual funds investments. 18. A study on Induction Training Program among the employees. 19. A study on Quality of Work Life among the employees. 20. A study on potentiality of Auto and Engineering companies. 21. A study on Customer Financial Need Analysis. 22. A study on financial position of the firm and a comparison of cash management product and multicity cheque facility 23. A study on Effectiveness of performance of Management System among the employees. 24. A Study on Working Capital Requirements of the Comapnay. 25. A study on Finanacial Performance of the Company. 26. A review on financial performance of the company 27....
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...1. RESEARCH METHODOLOGY 1. Objectives of the study:- ➢ To study Mutual Fund Industry with specific reference to equity growth oriented schemes. ➢ To compare the performance of 5 open ended equity mutual fund schemes with various financial parameters like Treynor, Jenson and Sharpe Model. ➢ To assess the above-mentioned schemes in-depth and suggest the investors for the same. ➢ To assign ranks to the selected mutual fund schemes and suggest suitable scheme to the investors on the basis of risk and return. 2. Scope of the Study:- ➢ In this study we have selected last 5 years data for 5 equity oriented mutual fund schemes and their performance results. ➢ Due to time constrain, we took only five equity schemes and suggest the desired portfolio for the investors only on the base of above schemes only. ➢ We have taken BSE 100 as the benchmark index for calculation of market return though different funds have compared themselves on different indices. This is to make our study more valid and it is easy to compare performance on one benchmark return basis. ➢ We have considered the rate of interest of National Savings Certificates as the Risk free rate of return. 3. Criteria & Tools for Evaluation:- This study only includes five open ended equity funds during the last 5 years. Moreover the result of the study is only based on following measures. ➢ Treynor Measure ➢ Sharpe Measure ➢ Jenson Model 1.4 Research design:- ...
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...EQUITY DIVERSIFIED MUTUAL FUNDS V/s DIRECT EQUITY: A comparative study Submitted in Partial Fulfillment for the Degree of Bachelor of Business Studies By Akshat Jain (Roll No. – 08/BBS/7160 Batch: 2008-2011 ) To DEEN DAYAL UPADHYAYA COLLEGE University of Delhi Shivaji Marg, Karampura New Delhi-110015 | | | ACKNOWLEDGEMENT Encouragement motivates a person towards one’s aim while guidance helps one to achieve it. Both encouragement and guidance take one towards success in one’s works. It would be difficult and almost impossible to achieve excellence without the blessings of God above and of elders. I convey my heartfelt affection and accord my deep sense of gratitude to Dr. Deepa Kamra, Faculty Guide for inspiring guidance, constructive criticism, unlimited interest and innovative ideas throughout the pursue of this manuscript. Akshat Jain DECLARATION I Akshat Jain have completed the Summer Training Project titled “EQUITY DIVERSIFIED MUTUAL FUNDS V/S DIRECT EQUITY” under the guidance of Dr. Deepa Kamra in the partial fulfillment of the requirement for the award of degree of Bachelor of Business Studies from Deen Dayal Upadhyaya College, Delhi University. This is an original piece of work & I have neither copied and nor submitted it earlier elsewhere. Akshat Jain Certificate from Internal Guide ...
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...CHAPTER ONE INTRODUCTION 1.0 OVERVIEW This paper intent to analyze the performance of Islamic equity unit trust funds’ in CIMB Wealth Advisors Berhad by comparing with the FTSE Bursa Malaysia Composite Index (KLCI) as benchmark. This chapter will discuss the background of the study, historical development of unit trust industry in Malaysia, understanding unit trust, problem statement, research objectives and the significance of the study. 1.1 BACKGROUND OF THE STUDY A plenty of investments alternative can be seen nowadays. But it’s depends on people which alternative they prefer to invest or depend on their skills of investing in such instruments. Most of the people who are lack in financial knowledge or investing skills will prefer to make investments in unit trust funds. There has abundance of benefits in unit trust and also can be advantageous to the small investors. Unit trust is an ideal way for small investors to invest for their future. Small investors are people who earn their living engaged in activities not related to the financial arena. They are aware that investing is important to them, but they lack of know-how to make the right decisions. For people who are unable or unwilling to do research and analyze investment markets and climate on their own, unit trusts is a good way to invest. In order to maintain a portfolio of stocks in the share market, a person has to keep himself up-to-date with market information and climate. For many people, this is difficult...
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...management of the risk. This ensures that the portfolio manager of the company works hard to deliver the best performance that is relatively the same as compared to the benchmark’s performance. The equity fund seeks for growth which is for the long term, when the earnings from the stocks are expected to grow above average rates. ZEUS’s PRIMARY INVESTORS The primary investors of Zeus consist of both the individuals and the institutional investors. The institutional investors come from corporations, endowments and foundations. On the other hand, the individual investors consist of high net worth and the risk averse investors that want to invest their assets for long periods and achieve growth. INDIVIDUALLY MANAGED ACCOUNTS & MUTUAL FUNDS The minimum requirement for the individually managed accounts is $ 2 million. Zeus used to customize the portfolios for these clients according to the investment objectives of these clients and afterwards it balanced the volatility and the time horizon of these investments. For other types of people or groups that did not have the minimum capital requirement, then these individuals could invest in the specialty funds. Zeus had established multiple mutual funds because of the domestic equity, bond and the international equity market. Apart from this, Zeus also provided fixed income securities and high quality equities both combined in balanced fund. QUESTION 2 CURRENT INVESTMENT PROCESS OF ZEUS Whenever any new director was hired by the management...
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... 13-14 3.1 Regulatory Framework of ICB 13 3.2 Institutional Framework 13 3.3 Manpower 13 3.4 Number of Branches of ICB 14 3.5 Training of Employees 14 Chapter 4 Functions of Various Departments of ICB 16-27 4.1 Administrative Division 17 4.2 Merchandising Division 18 4.3 Funds Division 19 4.4 Accounts and Finance Division 20 4.5 Computer Division 22 4.6 Loan Appraisal Division 22 4.7 Implementation & Recovery 24 4.8 Legal Affairs Division 24 4.9 Audits and Method Department 25 4.10 Secretary’s Division 25 4.11 Branch and Subsidiary Control Division 26 4.12 Activities of Subsidiary Company’s 26 Chapter 5 Introduction of ICB Mutual Funds 29-36 5.1 Introduction 29 5.2 What Is Mutual Fund 29 5.3 Types of Mutual Funds 30 5.4 Classification of Mutual Fund 31 5.5 Mutual Fund Returns 31 5.6 Advantages of Mutual Fund 32 5.7 Launching Of ICB Mutual Funds 33 5.8 Regulatory Set-Up of ICB Mutual Fund 33 5.9 Mutual Fund Management 34 5.10 How to Buy or Sale Mutual Funds 34 5.11 Registration of Mutual Fund 34 5.12 Causes Behind Investing In ICB Mutual Fund 34 5.13 How Mutual...
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...relationship-oriented that served both individual and institutional investors with the investment philosophy of believing that they could get a superior return over the long run using a conservative, risk-averse and quality-oriented approach. Zeus have been measuring it’s return in an absolute basis however Abbott demanded for it to be in risk adjusted basis to be better determine if Zeus outperform the relevant indices. The main problem with the current measure is that it did not take risk into consideration. The main aim in this case study is to determine if the current performance evaluation is sufficient or a better risk adjusted measure could be form. Other than that, we would also take into consideration of the difference between Zeus with its main competitors and how different type of investors would have different investment strategy due to their different risk preference. Problem with current measure As the current fund performance measurement consist mainly of holding period and benchmark return, these return have weaknesses that does not allow it to be a sufficient measurement. As a HPR generally calculated based on determining what the total return is earned from holding the investment for a specific period of time. The advantage of it is that it is easy to calculate and understand by investors, at the same time taking into account of the income and growth. However it did not take into account of time value of money, that make the return inaccurate for a longer time period. Other...
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