Page 1 of 5

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 12

November 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 78

A study on Equity Fund Evaluation Special Reference to Aditya

Birla Sun Life Frontline Equity.

Dr.C.Mugunthan & Mr. Sharath Prabhu

Research Supervisor, Department of Commerce, Periyar University, Dharmapuri

Research Scholar, Department of Commerce, Periyar University, Dharmapuri

mugunth16274@gmail.com & prabhu.sharath22@gmail.com

Introduction

The mutual fund is such investment it will

help the investors to invest with the small

fund and it will collect or pool the money

from the various small and big investors

according to the investment objectives of

the investors. They intern issues units

based on the current NAV and it will run

based on the market interacting and always

hopes on the market that it will rise in the

future. The benefits for the investors are

that it will give the equal opportunities in

investing various scheme of the mutual

fund. There are different kinds of mutual

fund available in the market it will be open

ended and close ended schemes. These

mutual funds are regulated by SEBI and

managed by the asset management

company for healthy growth in the market

and within the scheme. They will collect

certain amount has the fee for managing

the fund of the investors. This study has

been taken on the equity scheme one of the

beset and popular scheme in the market at

the same time it will has much fluctuation

in the units. Therefore there is a small

attempt has been made to research on the

performance of the fund over the past five

years.

Back ground of the study

The Aditya Birla Sunlife Frontline Equity

generates the long term growth of capital

through a portfolio with a target allocation

of 100% equity by aiming at being as

diversified across various industries. The

fund manager always plays a vital role to

up keep fund when it break down through

different types of strategies.

The policy is flexibility to invest and buy

and hold strategies and a buy and hold

strategy well for the investors who stay

invest in this fund for the long run. A well

diversified fund with holdings of about 70

stocks, along with a stable management

team backed by performance makes it a

good choice to invest in.

Review of literature

Friend, et al., (1962) made a broad and

methodical investigation of 152 common

Page 2 of 5

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 12

November 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 79

assets found that shared reserve plans

earned a normal yearly return of 12.4

percent, while their composite benchmark

earned an arrival of 12.6 percent. Their

alpha was negative with 20 premise

focuses. General outcomes did not propose

boundless wastefulness in the business.

Examination of store comes back with

turnover and cost classifications did not

uncover a solid relationship.

Williamson (1972) thought about

positions of 180 supports between 1961-65

and 1966-70. There was no relationship

between's the rankings of the two periods.

The speculation capacities of a large

portion of the reserve chiefs were

indistinguishable. He highlighted the

developing unmistakable quality of

instability in the estimation of venture

hazard.

Klemosky (1973) examined speculation

execution of 40 assets in light of quarterly

returns amid the period 1966-71. He

recognized that, predispositions in Sharpe,

Treynor, and Jensen's measures, could be

expelled by utilizing mean supreme

deviation and semi-standard deviation as

hazard surrogates contrasted with the

composite measures got from the CAPM

(Capital Asset Pricing Modal).

Objectives

1. To study the fund invested by the

company.

2. To study the benchmark fixed for the

fund invested.

3. To study the sector investment made

by the company.

4. To study the holdings of the company.

Methodology

This study has been conducted based on the

secondary data collected from various reports

of the companies.

Analysis

Table 1: Showing the investment made by the company in mutual fund schemes

Year Fund invested (Rs in Lakh) Percentage

1 16.14 21.29

3 13.30 17.54

5 19.07 25.15

7 13.10 17.28

10 14.20 18.73

75.81 100

Table 1: Showing the investment made by the company in mutual fund schemes

0

20

40

1 3 5 7 10

16.14 13.3 19.07 13.1 14.2 21.29 17.54 25.15 17.28 18.73

fund invested

Axis Title

Fund invested

Page 3 of 5

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 12

November 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 80

Interpretation: The investment made by the Aditya Birla Sun Life Frontline Equity varies from one

year to ten years. Initial years it is more and during 3year and 7 years it was declined and then it was

increased.

Table 2: Showing the Bench Mark fixed for the return

Year Bench mark (%)

1 15.79

3 9.90

5 14.48

7 8.85

10 9.60

Chart 2: Showing the Bench Mark fixed for the return

Interpretation: The Company has the expectation from the diversification which company has made.

It was varying from the year to year and the fund invested. The expected return is more from year to

years.

Table 3: Showing the holdings of the company in various sectors.

Company % of Holdings of the various sectors

ICICI Bank 5.73

HDFC Bank 4.93

ITC 4.20

Infosys 3.84

Maruti Suzuki India 3.03

Charts 3: Showing the 5 sector of investment

0%

20%

40%

60%

80%

100%

1 3 5 7 10

15.79 9.9 14.48 8.85 9.6

Bench mark

year

Bench mark fixed for the return

5.73 4.93 4.2 3.84 3.03

0

10

ICICI Bank HDFC Bank ITC Infosys

Holidings

Sectors

Holdings of investments in various

sectors