Shweta Tayde
Student, Department of Business Management,
Jhulelal Institute of Technology.
Prof. Amar satijani
Assistant Professor, Department of Business Management,
Jhulelal Institute of Technology, Nagpur
ABSTRACT
The research article is title as comparative study of between ICICI Prudential equity-debt fund & SBI Equity Hybrid Fund with reference to Indian context. The Main objective of the Study to evaluate performance of Mutual Fund and facilitate the retail investors in decision making. Data are taken from Money control ad value research online data sources. The main tools use for the Study are Sector allocation, Assets allocation. Top 10 Stock holding Sector. Annual return of last 5 year. Standard deviation. Sharpe Ratio. Apha and simple Comparative analysis of both fund. Finding the study revealed that SBI Equity Hybrid Fund provided high return than other categories of fund. SBI equity Hybrid fund lower Standard deviation show the higher chance of fund will continue giving similar return in future. This study enable the research to suggest the retail investors to invest their money in to the fund.
KEYWORDS
Mutual Fund , Net Assets Value, Assets Allocation, Sector Allocation, Fund performance, Risk Investment, Annual return.
INTRODUCTION OF MUTUAL FUND
Mutual funds mobilize savings from a large number of investors and invest these funds in shares and other securities. The concept of mutual funds was conceived to pool resources of the small investors and deploys the same in the capital market through participation in the equity and other debt instrument. Mutual fund offer investors a diversified portfolio and also professional management at low cost. . Due to all of the above reasons, financial market inadvertently facing slowdown. Obviously, mutual fund performances are subject to the market performance. In this given situation, this study aims to analyze and evaluate the performance of different categories mutual fund houses and also to find out which fund performs better than its peers in that particular category. The researcher concentrated on equity fund, balanced fund, liquid fund, index fund, gilt fund and income fund categories. The major private sector mutual funds include ICICI Prudential Mutual Fund, Birla Sun Life Mutual Fund, HDFC Mutual Fund, Tata Mutual Fund, Reliance SBI Equity Hybrid fund.
ICICI PRUDENTIAL EQUITY & DEBT FUND
The ICICI Prudential Equity & Debt as the name implies invests in equities and equity as well as debt-related securities. The scheme aims to provide regular income and capital appreciation over a long-term investment horizon. This is a balanced fund that gives your portfolio stability as well as a boost in returns. The ICICI Prudential Equity & Debt was launched on November 3, 1999, by ICICI Prudential AMC. Earlier, the fund was known as ICICI Prudential Balanced Fund .ICICI Prudential Equity & Debt is a moderately high-risk bet and suitable for investors who want exposure to the equity market with a long-term investment horizon.ICICI Prudential Equity & Debt is jointly managed by Manish Banthia (September 2013), Sankaran Naren (December 2015), and Atul Patel (August 2016).The fund house does not charge any entry load or exit load if only 10% of the investment is redeemed before a year. However, if the rest of the investment is redeemed before a year, an exit load of 1% is applicable. No exit load is charged if redeemed after one year from the date of allotment. The Short-term capital gain tax of 15% is applicable if sold within a year. Long-term capital gain, in excess of Rs 1 lakh are taxed at 10% without indexation.
SBI EQUITY HYBRID FUND
SBI Equity Hybrid Fund aims to provide investors with opportunities for long-term capital appreciation with liquidity of an open-ended scheme by investing in a mix of debt and equity. … At any point of time, the fund will allocate assets in the range of 20-35% towards debt and money market instruments SBI Equity Hybrid is one of the most stable performers in the long term. In the past three- and five-year periods, the scheme has given 8.2 per cent and 10.1 per cent returns, respectively, while its peers in the category have given 5.4 per cent and 7.3 per cent returns, respectively, in the same period.
As regards the scheme’s debt investments, fund managers Dinesh Ahuja and R Srinivasan have given special attentions to quality. The scheme is heavily invested in government and AAA-rated securities which, moderately, offer a certain amount of stability to the portfolio
SBI Equity Hybrid Fund is a well-managed balanced fund. The equity portion is managed as a well-diversified multi-cap portfolio of high growth stocks with a predominant large cap blas. R Srinivasan, who manages the equity portion, is an experienced manager. The fund is suitable for risk averse investors with at least 3-5 years investment
Mutual Fund and BNP Paribas Mutual Fund to name a few.
1.1 Basic Concepts and Terms
ASSET MANAGEMENT COMPANY
Asset Management Company An Asset Management Company (AMC) is a highly regulated organization that pools money from investors and invests the same in a portfolio. They charge a small management fee, which is normally 1.5 per cent of the total funds managed.
NAV
Net Asset Value of the fund is the cumulative market value of the assets of the fund .NAV per unit is simply the net value of assets divided by the number of units outstanding.
EXIT LOAD
The non refundable fee paid to the Asset Management Company at the time of redemption/ transfer of units between schemes of mutual funds is termed as exit load. It is deducted from the NAV (selling price) at the time of such redemption/ transfer.
REDEMPTION PRICE AND RE-PURCHASING PRICE
Redemption price is the price received on selling units of open-ended scheme. If the fund does not levy an exit load, the redemption price will be same as the NAV. The redemption price will be lower than the NAV in case the fund levies an exit load. Repurchase price is the price at which a close-ended scheme repurchases its units. Repurchase can either be at NAV or can have a exit load.
RISK
Risk in holding securities is generally associated with the possibility that realized returns will be less than expected returns. The difference between the required rate of returns on mutual fund investment and the risk free return is the risk premium. Risk can be measured in terms of Beta & standard deviations.
OBJECTIVE
- To study of Investment Growth.
- To Study of Invest money in faster growing companies.
- To Study SIP Annual Return of ICICI Prudential Equity-debt Fund, and SBI Equity Hybrid Fund.
- To Study of Various Aspects and forms of Hybrid Mutual Fund.
- To Measure the Performance of the Select Hybrid Mutual Fund Schemes.
RESEARCH METHODOLOGY
- Secondary Data – Online Search, Website and Books
The Table Showing Annual SIP Return Comparison of ICICI Prudential Equity-Debt Fund and SBI Equity Hybrid Fund.
FINDINGS
- Hybrid fund combine the power of equities (share) and the stability of debt market instrument (fixed return investment like bonds) and provide both income and capital appreciation while avoiding excessive risk.
- A hybrid fund is suitable for investor looking for a combination of safety, income and modest capital appreciation.
- Convenient option for the investor.
- Find standard deviation, sharpe ration beta alpha and Annual return of sip last 5 year of both fund and analysis the them for which fund better.
CONCLUSION
- SBI Equity hybrid fund’s performance is much better as compared ICICI Prudential equity-debt fund in Market in both long and short run.
- We show equity, debt assets sector wise for the analysis performance of both fund.
- Above hybrid funds beta, sharp ratio. Standard Deviation shows who SBI equity Hybrid fund will continue giving similar return in future.
- Hybrid fund more risky but it will give more return other fund.
- SBI Equity Hybrid Fund aims to provide investors with opportunities for long-term capital appreciation with liquidity of an open-ended scheme by investing in a mix of debt and equity
REFERENCE
- C. R. Kothari, Research Methodology, New Dehli, Vikas Publlishing House Pvt. Ltd 2009.
- Financial Institution and Markets- L. M. Bhole, 4th Edition
Websites
- www.mutualfundindia.com
- www.amfiindia.com
- www.fundsindia.com
- www.valueresearchonline.com
- www.icicipruamc.com
- www.sbimf.com
