On Return Analysis and Performance of Selected

“On Return Analysis and Performance Of Selected Debt Fund with Special
Reference on Aditya Birla Sun Life Insurance”
Institutional Guide
Mr. Binod Moshahary
Assistant Professor
Department of Business Administration
NERIM Group of Institutions, Guwahati
Organizational Guide Presented by

Miss Komal Begwani Manas Pratim Kachari
MBA 3rd Sem
Agency Manager Roll no. 91/21
INTRODUCTION
Debt funds are mutual funds that generate returns by investing in fixed income
securities, that is in bonds or deposits of various kinds. This means that they
lend money and earn interest on it. The interest that they earn determines the
basis for the returns that they generate for investors.
Mutual funds can be a good opportunity for small or individual investors to
benefit from a professionally managed investment portfolio.
They usually invest in a large number of securities, and their performance is
tracked as the change in the market cap of the fund, which itself is determined
by the performance of the underlying investments.
OBJECTIVES
 To calculate and analyze the risk of selected 5 (five) debt funds of ABSLI.
 To calculate and analyze the return of selected 5 (five) debt fund of ABSLI.
 To analyze the overall performance of debt fund of this particular company.
RESEARCH METHODOLOGY
 Statement of the Problem
This project is basically conducted to understand and analyse the various types of risk and return
and to check the performance of debt fund of Aditya Birla Sun Life Insurance Co. Ltd.
 Sources of Data Collection

Secondary Data: Secondary data are those data which are already available. In this study,
secondary data are collected from the Internet and Factsheet.
 Reference Period
From 16 August 2022 – 12th October 2022 (Duration 2 Months)
 Plan of Analysis
The data has been presented with the help of table and graphical method like pie chart and
diagrams for convenience in understanding the result and their analysis. The findings are
then written in simple manner and on the basis of which suggestions and conclusion are
drawn.
 Toolsof Data Collection

The various tools that are being used for collection of data are as follows – Secondary data
 Organizational document (Factsheet)
 EMPOWER (ABSL monthly publication)
 Websites of ABSL: mutualfund.adityabirlacapital.com
 AMFI Websites.
LIMITATIONS
 There was shortage of time to analyse the debt fund as 2 months is not enough to
completely study about such a huge topic.
 The data has been analysed with limited data collected from the fact sheet of last
five years.
 The project work is limited to only selected Debt funds.
SUMMARY OF FINDINGS
The researcher has found that the highest bond price of Liquid fund was 928.18 in the year 2018 and the interest rate was
6.75% .The highest bond price of Short term fund was 736.41 in the year 2020 and the interest rate was 6.8%. The highest
bond price of Money manager fund was 586.10 in the year 2020 and the interest rate was 6.65% .The highest bond price
of Income fund was 2046 in the year 2019 and the interest rate was 8.09% .The highest bond price of savings fund was
1233.4 in the year 2018 and the interest rate was 7.2% . The bond price and interest rate are inversely related with each
other.Table 1.docx

The researcher has also found that the highest annualized return of liquid fund is 7.41% in the year 2019 and the lowest
annualized return is 3.36% in the year 2022. The highest annualized return of short term fund is 11.06% in the year 2021
and the lowest annualized return is 5.6% in the year 2018. The highest annualized return of Money manager fund is 8.04%
in the year 2020 and the lowest annualized return is 6.63% in the year 2021. Highest annualized return of income fund is
9.46% in the year 2020 and the lowest annualized return is 2.77% in the year 2018. Highest annualized return of savings
fund is 8.46% in the year 2020 and the lowest annualized return is 3.92% in the year 2022. Table 2.docx

 It has been found that As per Sharpe’s ratio calculation the liquid fund has a Sharpe ratio (reward risk ratio) of -1.52 which
indicates low return over a period of 5 years. The income fund has a Sharpe ratio (reward risk ratio) of -0.03 which
indicates also low return over a period of 5 years. The short term fund has a Sharpe ratio (reward risk ratio) of 0.18 which
indicates high return over a period of 5 years as compared to the income fund & Liquid fund. The Money manager fund
has a Sharpe ratio of 0.62 which indicates highest return over a period of 5 years. The savings fund has a Sharpe ratio
(reward risk ratio) of -0.18 which indicates also low return over a period of 5 years.Table 3.docx

 According to beta calculation liquid fund beta is 0.99 and is having high risk and the Treynor’s ratio is -1.34. Savings fund
beta is -0.40 and is having low risk and the Treynor’s ratio is 0.38 and liquid fund yielding low return over a period of 5
years. The income fund beta is 0.57 and is having low risk and the Treynor’s ratio is -0.11 and is yielding low return over a
period of 5 years. The Money manager fund beta is 0.029 and is having moderate risk and the Treynor’s ratio is 7.59 and is
yielding higher return and it indicates that it is a defensive stock. According to beta calculation the savings fund beta is -
0.40 and is having low risk and the Treynor’s ratio is 0.38 and is yielding high return over a period of 5 years. Table 4.docx

 According to Arithmetic mean Short term Fund is yielding high average returns (7.23) when compared other
funds like Liquid fund (5.67), Money manager fund (7.22), Income fund (6.94) and savings fund (6.85).
Table 5.docx
 According to standard deviation Money manager fund (0.36) is having low risk, when compared to other funds
like Liquid fund (0.88), short term fund (1.29), Savings fund (0.87) and Income fund (2.05). Table 6.docx
 According to Beta calculation Savings fund (0.99) is having high risk when compared to other funds like short
term fund (0.66), Money manager fund (0.029), Income fund (0.57) and savings fund (-0.40).Table 7.docx
 As per Sharpe ratio the performance of Money manager fund (0.62) is high when compared to other funds like
liquid fund (-1.52), Short term fund (0.18) Income fund (-0.03) and savings fund (-0.18). Table 8.docx
 According to Treynor’s ratio Money manager fund (7.59) is yielding high returns when compared to other funds
like Liquid fund (-1.34), short term fund (0.35), Income fund (-0.11) and savings fund (0.38).Table 9.docx
SUGGESTIONS AND CONCLUSION
 Risk takers can go for Short term fund which is yielding high average returns.
 The fund manager has to select good scripts in the portfolio for providing good returns to the
investors as well as to attract more potential investors in near future.
 The investor has to think their investment objectives and to take high risk for getting high
returns.
 Risk averages can go for short term fund because its performance is high and average
returns also moderate.

 The investors can go for the Money manager fund its gives higher return and treynor’s ratio.
 The investors should focus on marker situations and then only invest in any fund.

CONCLUSION
Mutual fund industry nowadays is one of the most favoured investment options all over the world. It
plays a vital role in the economic expansion of a country. Mutual funds mainly depend on capital
market performance. If the market performance is good, it will give good returns and vice –versa.
Aditya Birla Capital Limited (ABCL) is the holding company of all the financial services businesses of
the Aditya Birla Group. With a strong presence across the life insurance, asset management, private
equity, corporate lending, structured finance, project finance, general insurance broking, wealth
management, equity, currency and commodity broking, online personal finance management, housing
finance, pension fund management and health insurance business, ABCL is committed to serving the
end-to-end financial services needs of its retail and corporate customers . On the basis of data analysis
and interpretation it can be states that the Aditya Birla Group plays a vital role in providing the
investment opportunities to different types of investors in the society through mutual fund scheme.

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On Return Analysis and Performance of Selected

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“On Return Analysis and Performance Of Selected Debt Fund with Special

Reference on Aditya Birla Sun Life Insurance”

Organizational Guide Presented by

 Sources of Data Collection

 Toolsof Data Collection

investors as well as to attract more potential investors in near future.

returns also moderate.

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