Mutual Funds , a Project Report

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Mutual funds are a topic, which is of interest to both investors and academicians all over the world. Mutual Funds as a medium-to-long term investment option are preferred as a suitable investment option by investors. However, with so many market entrants and a plethora of schemes available to the investors, the question is the choice of mutual fund. The study focuses on this problem of mutual fund selection by investors. It involves performance evaluation of ten mutual funds based on the evaluation models: Fama, Jensen, Sharpe and Treynor.

It is to be noted that while analyzing performance of a mutual fund both qualitative and quantitative measures should be considered. The performance measures used in the study only depict the quantitative result based on the past return and risk associated with it. And the other factors such as asset allocation of funds, percentage of specific sector investments, fund manager’s background, experience and his style has not been taken in to consideration.

This report starts with an overview of the Standard Chartered Bank and Standard Chartered Mutual Fund. Following is the basics on Mutual Fund and the present industry scenario and the study on performance evaluation of mutual funds.


Standard Chartered Bank – An Overview

Standard Chartered Bank (SCB) is a leading British bank having operations in more than 50 countries with the Asia Pacific region, South Asia, the Middle East, Africa, the United Kingdom and America.

SCB is listed on London Stock Exchange and the Hong Kong Stock Exchange and is consistently ranked in the top 25 among FTSE-100 companies by market capitalization.

Standard Chartered has a history of over 150 years in banking and a network of over 1400 branches across the globe. It employs over 60,000 people of more than 100 nationalities. This diversity is the core competency of Standard Chartered Bank, which contributes to the growth of the bank in the international markets.

Its products and services include all structured banking products to corporate clients, covering short and long term funding in local and foreign currencies and transaction banking including comprehensive trade finance, supply and dealer chain financing and cash management services.

Company History

The Standard Chartered group was formed in 1969 through a merger of two banks: the Standard Bank of British South Africa founded in 1863, and the Chartered Bank of india, Australia and China, founded in 1853. Both companies were keen to capitalize on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods from Europe to the East and to Africa. Thus, as its operations came under threat from nationalization programme in the countries in which it was present in the 1970s, the bank sought expansion in developed countries, particularly the USA. It also proposed a takeover of the Royal Bank of Scotland Group, which would have given it a substantive base in its home country, but this was prevented by a counter-bid from the HSBC and then blocked by competition authorities in 1981. When a hostile takeover bid was made for the Group by Lyods Bank in 1986 this was successfully defeated. After this, Standard Chartered entered a period of change. Provisions were made against third world debt exposure and loans to corporations and entrepreneurs who could not meet their commitments. The company began a series of divestments and sought to re-focus itself on emerging markets. It divested its stake in the Standard Bank of South Africa in 1987 in response to anti-apartheid pressure and today the Standard Bank is one of its major competitors in Africa. From the early 90s, Standard Chartered has focused on developing its strong franchises in Asia, the Middle East and Africa using its operations in the United Kingdom and North America to provide customers with a safe regulatory bridge between these developing economies.

It now...
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