Summer Internship presentation hedge .pptx

summer internship

1. Industry Mentor Ms. Steffy Francis Summer Internship

2. INDUSTRY PROFILE 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. Growth of mutual funds in India Phase 1 (1964-87)- Growth of Unit Trust of India Phase 2 (1987-93)- Entry of public sector funds Phase 3 (1993-96)- Emergence of private funds Phase 4 (1996-99)- Growth & SEBI regulation Phase 5 (1999-04)- Emergence of a large & uniform industry Phase 6 (2004- onwards)- Consolidation & growth

3. Hedge Equities Ltd. is one of the leading retail stock broking houses which is running successfully in the country. Hedge offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, Depository services, online trading, investment advice etc. The firm has an online trading and investment site (www.hedgeequities.com). COMPANY PROFILE MISSION To create an ethical and sustainable financial services platform for customers and partner them to build business, to provide employees with meaningful work, self- development and progression, and to achieve a consistent and competitive growth in profit and earnings for shareholders and staff. VISION Ever since its inception, Hedge Equities has been a household name among the masses owing our success to timely Professional financial assistance to our clients. This aptly articulates our vision of 'Evolving into a financial supermarket which will be a one stop shop for all financial solutions'.

4. PROJECT TOPIC “A Study Conducted at M/S Hedge Equities Limited on Portfolio Analysis through Mutual Funds with Special Reference to Hybrid, Equity & Debt Mutual Funds” PROBLEM STATEMENT In today's complex financial landscape, selecting the right investment is challenging. Mutual funds, while practical for small investors, pose a dilemma due to their diverse types (equity, debt, balanced, sectorial) and the influence of global events on asset prices. Mature, information-driven markets in real estate, derivatives, and stocks add to the complexity. Common investors struggle to identify profitable funds amid economic fluctuations. This highlights the need for portfolio analysis as an effective tool to assess returns and risks associated with mutual fund investments.

5. DATA SOURCE The present study is based on secondary data. Monthly adjusted close price of the selected schemes has been collected from https://finance.yahoo.com/ website. SAMPLE The following schemes were meticulously evaluated- EQUITY MUTUAL FUNDS DEBT MUTUAL FUNDS HYBRID MUTUAL FUNDS IDFC Tax Advantage (ELSS) Fund- Direct Plan Growth SBI Contra Direct Fund Growth DSP Equity Fund Direct Plan Growth Aditya Birla Life Sun Frontline Equity of Growth Direct Plan ICICI Prudential Large & Mid Cap Fund Direct Plan Growth DSP Equity & Bond Fund Growth Aditya Birla Sun Life Medium Term Plan Axis Strategic Bond Fund Growth ICICI Prudential Medium Term Bond Fund Growth Nippon India Ultra Short Duration Fund Growth UTI Bond Fund Regular Plan Growth ICICI Prudential Equity & Debt Fund Direct Plan Kotak Equity Hybrid Direct Growth HDFC Balanced Advantage Growth Canara Robeco Equity Hybrid Fund Direct Plan Growth

6. Tools & Techniques Average return 01 Standard deviation 02 Beta 03 04 05 06 Treynor’s ratio Jenson’s ratio Sharpe’s ratio

7. AVERAGE RETURN Interpretation All funds had negative returns in the 2019–20 fiscal year. Starting from 2020, SBI Contra Fund Direct Growth showed strong returns compared to other funds. SBI Contra Fund Direct Growth had a high negative return in the 2019–20 fiscal year. The fund with the lowest return compared to others is IDFC Tax Advantage (ELSS) Fund - Direct Plan - Growth. The mutual funds with the most modest returns in equities are DSP Equity Fund - Direct Plan - Growth, ICICI Prudential Large & Mid Cap Fund Direct Plan Growth, and Aditya Birla Sun Life Frontline Equity Fund Growth Direct Plan. Graph showing Average return of Selected Equity Mutual Funds from year 2018 to 2023

8. AVERAGE RETURN Interpretation In the fiscal year 2019-20, three funds (Nippon India Ultra Short Duration Fund Growth, Aditya Birla Sun Life Medium Term Plan Growth Direct Plan, and Axis Strategic Bond Fund Growth) had negative returns, while others were positive. Post-2020, these three funds started to show improving returns, while the rest saw declining returns. After the 2021-22 period, Aditya Birla Sun Life Medium Term Plan Growth Direct Plan and Axis Strategic Bond Fund Growth continued to rise, while others declined. Aditya Birla Sun Life Medium Term Plan Growth Direct Plan had the highest average annual return among analyzed debt mutual funds, making it an attractive choice. ICICI Prudential Medium Term Bond Fund Growth and Axis Strategic Bond Fund Growth were consistent in providing positive returns, offering stability for investors. GRAPH showing Average return of Selected Debt Mutual Funds

9. AVERAGE RETURN Interpretation The graph shows the average returns of Hybrid mutual funds from the year 2018-19 to August 2021-22. The fund Canara Robeco Equity Hybrid Fund - Direct Plan – Growth shows high variation in the returns in the past 5 years. This fund depicted highest return in 2020-21 and lowest return in 2019-20. The fund DSP Equity & Bond Fund Growth is less deviating funds among these 5 funds. GRAPH showing Average return of Selected Hybrid Mutual Funds

10. BETA Interpretation The graph shows that most of the equity funds has the risk greater than the market risk. In these funds Aditya Birla Sun Life Frontline Equity Fund Growth Direct Plan and SBI Contra Fund Direct Growth have less risk which is less than 1. The fund IDFC Tax Advantage(ELSS) Fund - Direct Plan – Growth has the highest beta (1.12). Graph showing Beta of selected portfolios of Equity Mutual Funds

11. BETA Interpretation The debt mutual funds are less risky when compared with equity mutual fund. The funds have less risk than the market risk. In these funds Aditya Birla Sun Life Medium Term Plan Growth Direct Plan have the highest beta value. The fund Nippon India Ultra Short Duration Fund Growth has negative beta value. Graph showing Beta of different portfolios of Debt Mutual Funds

12. BETA Interpretation The Hybrid mutual funds are less risky when compared with equity mutual fund. The funds have less risk than the market risk. In these funds HDFC Balanced Adv Growth have the highest beta value. The fund DSP Equity & Bond Fund Growth have the lowest beta value.it is the less risky fund in the selected hybrid funds. Graph showing Beta of different portfolios of Hybrid Mutual Funds

13. STANDARD DEVIATION Interpretation The standard deviation indicate the variations in the returns of the funds. The funds IDFC Tax Advantage (ELSS) Fund - Direct Plan – Growth have the highest standard deviation which means its returns are high violating in nature. The fund Aditya Birla Sun Life Frontline Equity Fund Growth Direct Plan is less violating fund in these funds. Graph showing Standard Deviation of different portfolios of Equity Mutual Funds

14. STANDARD DEVIATION Interpretation The standard deviation indicates the variations in the returns of the funds. The fund Aditya Birla Sun Life Medium Term Plan Growth Direct Plan has the highest standard deviation which means its returns are high violating in nature. The fund ICICI Prudential Medium Term Bond Fund Growth is less violating among others. Graph showing Standard Deviation of selected portfolios of Debt Mutual Funds

15. STANDARD DEVIATION Interpretation The standard deviation indicate the variations in the returns of the funds. The fund HDFC Balanced Advantage Growth has the highest standard deviation which means its returns are high violating in nature. The fund Canara Robeco Equity Hybrid Fund - DirectPlan – Growth is less violating fund in these funds. Graph showing Standard Deviation of different portfolios of Hybrid Mutual Funds

16. SHARPE RATIO Interpretation All the funds depicts a positive ratio so, all the funds are performing well in the market. Among these funds SBI Contra Fund Direct Growth fund is better performing and IDFC Tax Advantage (ELSS) Fund - Direct Plan – Growth is showing less performance than the other funds. Graph showing Sharpe ratio of different portfolios of Equity Mutual Funds

17. SHARPE RATIO Interpretation The graph depicts the Sharpe ratio of debt mutual funds. Most of the funds showing negative ratio, which indicates that, the funds are underperforming and only one fund depicts positive ratio. The fund Aditya Birla Sun Life Medium Term Plan Growth Direct Plan is the better performing fund among these funds. Graph showing Sharpe ratio of different portfolios of Debt Mutual Funds

18. SHARPE RATIO Interpretation All the funds depicts a positive ratio so, all the funds are performing well in the market. Among these ICICI Prudential Equity & Debt Fund Direct Plan Growth fund is better performing and HDFC Balanced Adv Growth is showing less performance than the other funds. Graph showing Sharpe ratio of different portfolios of Hybrid Mutual Funds

19. TREYNOR RATIO Interpretation Since every fund has a positive ratio, every fund is doing well in the market. SBI Contra Fund Direct Growth Fund outperforms the competition, while Aditya Birla Sun Life Frontline Equity Fund Growth Direct Plan underperforms when compare with others. Graph showing Treynor ratio of different portfolios of Equity Mutual Funds

20. TREYNOR RATIO Interpretation The graph depicts the Treynor ratio of debt mutual funds. Most of the funds have negative ratio, which indicates that, the funds are underperforming and only one fund posess positive ratio. The fund Aditya Birla Sun Life Medium Term Plan Growth Direct Plan is the better performing fund among these funds. Graph showing Treynor ratio of different portfolios of Debt Mutual Funds

21. TREYNOR RATIO Interpretation The graph depicts Treynor ratio of hybrid funds. All the funds have positive ratio. It indicates that all the funds are performing well. The fund Canara Robeco Equity Hybrid Fund - Direct Plan - Growth has the highest ratio. The fund HDFC Balanced Adv Growth has fewer ratios and it is underperforming fund when compare with other selected hybrid funds. Graph showing Treynor ratio of different portfolios of Hybrid Mutual Funds

22. TREYNOR RATIO Interpretation The graph depicts Treynor ratio of hybrid funds. All the funds have positive ratio. It indicates that all the funds are performing well. The fund Canara Robeco Equity Hybrid Fund - Direct Plan - Growth has the highest ratio. The fund HDFC Balanced Adv Growth has fewer ratios and it is underperforming fund when compared with other selected hybrid funds. Graph showing Treynor ratio of different portfolios of Hybrid Mutual Funds

23. JENSEN RATIO Interpretation The graph shows the Jensen ratio of equity mutual funds. Here, while comparing these funds SBI Contra Fund Direct Growth shows highest ratio based on its performance. The positive ratio implies that the fund manager of SBI Contra Fund Direct Growth had outperformed and able to beat the bench mark return. Simultaneously ICICI Prudential Large & Mid Cap Fund Direct Plan Growth and Aditya Birla Sun Life Frontline Equity Fund Growth Direct Plan were underperformed. Graph showing Jensen ratio of different portfolios of Equity Mutual Funds

24. JENSEN RATIO Interpretation The graph shows the Jensen ratio of debt mutual funds. Here, most of the debt funds have underperformed as they are negative. Aditya Birla Sun Life Medium Term Plan Growth Direct Plan had the highest positive ratio where the investors can invest. Graph showing Jensen ratio of different portfolios of Debt Mutual Funds

25. JENSEN RATIO Interpretation The graph shows the Jensen ratio of hybrid mutual funds. Here, while comparing those funds ICICI Prudential Equity & Debt Fund Direct Plan Growth shows highest ratio based on its performance. It shows the investor can invest in this fund Simultaneously DSP Equity & Bond Fund Growth and HDFC Balanced Adv Growth underperformed when compared to its peers. Graph showing Jensen ratio of different portfolios of Hybrid Mutual Funds

26. SBI Contra Fund Direct Growth stands out with high average returns compared to its peers. It also has a lower volatility, as indicated by its beta, making it less risky than the overall market. On the other hand, Aditya Birla Sun Life Frontline Equity Fund Growth Direct Plan is a low-risk option. The standard deviation suggests that IDFC Tax Advantage (ELSS) Fund - Direct Plan – Growth carries higher risk due to its greater volatility. In contrast, ICICI Prudential Large & Mid Cap Fund Direct Plan Growth is a less volatile choice for long-term investments. In terms of the Sharpe ratio, SBI Contra Fund Direct Growth demonstrates strong performance among the selected equity mutual funds. Conversely, Aditya Birla Sun Life Frontline Equity Fund Growth Direct Plan lags behind. The Treynor ratio also favors SBI Contra Fund Direct Growth as the best-performing fund, with Aditya Birla Sun Life Frontline Equity Fund Growth Direct Plan being the weakest in this regard. When considering the Jensen ratio, SBI Contra Fund Direct Growth continues to outperform other funds, while ICICI Prudential Large & Mid Cap Fund Direct Plan Growth is the least favorable choice. FINDINGS 1. Equity Mutual Funds

27. The fund Aditya Birla Sun Life Medium Term Plan Growth Direct Plan have the highest average return and the same fund showing the highest return in the current year. In terms of standard deviation, Aditya Birla Sun Life Medium Term Plan Growth Direct Plan Fund is more volatile than other funds, which implies that its performance has a larger tendency to swing sharply beyond average but also noticeably below it. This fund is therefore suited for making short-term investments. ICICI Prudential Medium Term Bond Fund Growth, on the other hand, exhibits less volatility and is a good option for long-term investments. The portfolio's beta value suggests that the funds are less volatile than the market as a whole. ICICI Prudential Medium Term Bond Fund Growth has the low risk compared to other funds. An investment with a negative beta is one that goes counter to the direction of the stock market. Nippon India Ultra Short Duration Fund Growth has a negative beta. On the basis of sharpe ratio the performance of selected debt mutual funds is worse as it shows a negative ratio and only one fund showing a positive ratio. The fund Aditya Birla Sun Life Medium Term Plan Growth Direct Plan has the highest ratio and it is the better performing fund. The fund UTI Bond Fund Regular Plan Growth is the worst performing fund. The performance of the chosen debt mutual funds is poorer based on the Treynor ratio, with only one fund displaying a positive ratio. The fund with the highest ratio and best performance is Aditya Birla Sun Life Medium Term Plan Growth Direct Plan. The worst-performing fund is Nippon India Ultra Short DurationFund Growth. According to the Jensen ratio, just one of the selected debt mutual funds has performed better than the others.Aditya Birla is the fund with the greatest ratio and the best performance. UTI Bond Fund Regular Plan Growth is the fund with the worst performance. FINDINGS 2. Debt Mutual Funds

28. The funds ICICI Prudential Equity & Debt Fund Direct Plan Growth have the highest average return and the fund HDFC Balanced Adv Growth showed the highest return in the current year. The portfolio's beta value suggests that the funds are less volatile than the market as a whole. DSP Equity & Bond Fund Growth has the low risk compared to other funds. The fund HDFC Balanced Adv Growth has the highest risk in the portfolio. The performance of Hybrid mutual funds is strong according to the sharpe ratio, which displays a positive ratio. The best performance has been seen in ICICI Prudential Equity & Debt Fund Direct Plan Growth compared to other funds and the worst one is HDFC Balanced Adv Growth in the selected hybrid mutual funds. The fund HDFC Balanced Adv Growth is more volatile than other funds in terms of standard deviation, which means that its performance is more likely to swing drastically above average but also noticeably below it. Because of this, this fund is appropriate for making short- term investments. Canara Robeco Equity Hybrid Fund Direct Plan - Growth, has lower volatility and is a wise choice for long-term investments. According to the Treynor ratio, which shows a favourable ratio, the performance of Hybrid-based mutual funds is good. The best performance has been seen in DSP Equity & Bond Fund Growth compared to other funds and the worst one in HDFC Balanced Adv Growth. The jensen ratio, which exhibits a positive ratio, indicates that the performance of some hybrid mutual funds is strong. The performance of ICICI Prudential Equity &Debt Fund Direct Plan Growth is best compared to other funds and HDFC Balanced Adv Growth is the worst one. FINDINGS 3. Hybrid Mutual Funds

29. BEST PERFORMING MUTUAL FUNDS The equity mutual funds are ranked on the basis of funds having high return and moderate risk and also having high sharpe, treynor and jensen‘s ratio. The debt mutual funds are ranked on the basis of funds having high return and moderate risk and also having high sharpe, treynor and jensen‘s ratio. Hybrid mutual funds are structured to strike a balance between returns and risk, as they do not conform to a uniform pattern. These funds are designed to offer investors a moderate level of both returns and risk.

30. SUGGESTIONS Investments in equity funds are preferable for investors seeking high margins of return at high risk. SBI Contra Fund Direct Growth is preferable fund in equity category. For Investors seeking low risk and a positive margin of return, debt funds such as Aditya Birla Sun Life Medium Term Plan Growth Direct Plan and ICICI Prudential Medium Term Bond Fund Growth are the best option. Hybrid funds are the greatest choice for investors looking for diversified fund portfolios. From the selected hybrid funds ICICI Prudential Equity & Debt Fund Direct Plan Growth and Canara Robeco Equity Hybrid Fund - Direct Plan – Growth are best option for the investors who are looking for long term investment and investors who look for short term, HDFC Balanced Adv Growth is the better alternative. Prior to making an investment, always be clear about your goals. Investors should think about concentrating on long-term growth funds. To reduce risk and increase return, investors must routinely monitor the performance of their portfolio. Examine several mutual fund scheme types.

31. CONCLUSION Study covers three mutual fund types: equity, debt, and hybrid, with five funds in each category. Investors aim for better returns in stock market investments but should be aware of potential risks. Analysis employs beta, standard deviation, Sharpe, Treynor, and Jensen ratios to identify top mutual funds. Equity funds offer high returns with high risk, debt funds suit low-risk investors seeking positive returns, and hybrid funds are for diversified portfolios. Market conditions and investment goals should guide investors in choosing fund types. Top-performing funds include SBI Contra Fund Direct Growth, Aditya Birla Sun Life Medium Term Plan Growth Direct Plan, and ICICI Prudential Equity & Debt Fund Direct Plan Growth. Mutual funds have seen significant growth in India due to factors like increased personal assets, international asset management firms, a favorable stock market, and effective marketing.

32. ACHIEVEMENT