A Study on Performance Evaluation of Equity Shares and Mutual Funds

In the current economic scenario interest rates are falling and fluctuation in the share market has put investors in confusion. One finds it difficult to take decision on investment. This is primarily, because of investments are risky in nature and investors have to consider various factors before investing in investment avenues.

These factors include risk, return, volatility of shares and liquidity. The main objective of comparing investment in equity shares with mutual fund schemes is to analyze the performance of mutual funds with their benchmark and comparing them with equities by using risk, return, beta and alpha as a parameter.

Historical data were taken for calculating risk, return, alpha and beta. Analysis has done on percentage method for comparing equity shares with mutual fund schemes. Compare to equities mutual funds are less risky with stable returns and mutual funds gives the investor a diversified portfolio. Those who have well knowledge in equity market they can go for equity investments rather than investing in mutual funds because no control on the expenses made by the fund manager.

The study will guide the new investor who wants to invest in equity and mutual fund schemes by providing knowledge about how to measure the risk and return of particular scrip or mutual fund scheme. The study recommends new investors to go for mutual funds rather than equities, because of high risk and market instability.

In the current economic scenario interest rates are falling and fluctuation in the share market has put investors in confusion. One finds it difficult to take decision on investment. This is primarily, because investments are risky in nature and investors have to consider various factors before investing in investment avenues. Therefore the study aims to compare equity and mutual fund schemes in form their risk, return & liquidity and also creating awareness about Equity and Mutual Fund Schemes among the investors.

Saving money is not enough. Each of us also need to invest one’s savings intelligently in order to have enough money available for funding the higher education of one’s children, for buying a house, or for one’s own golden years. But the rapidly growing number of investment avenues often led to confusion. Objectives of the study are to provide information to individual investors regarding their risk, and choosing the best investment options to match their goals and attitude to risk.

1. To compare Equity and Mutual Fund Schemes in respect of their risk & return.
2. Analyzing the performance of equity shares and mutual fund schemes with their benchmark.
3. Finding the Volatility of shares by using beta.
4. Provide information about pros and cons of investing in Equity and Mutual Funds portfolio management.

The study is limited to compare equity capital and mutual fund schemes in respect of their risk, return and liquidity. The study covers 5 randomly selected stocks out of 30 BSE, 50 Sensex companies and 5 randomly selected mutual fund schemes out of mutual fund industry in India for comparison. The analysis is strictly based on share price and unit price information. Other company performance indicators are not considered. It focuses on every month ending closing prices of during the period from 1st Apr, 2003 to 31st Mar, 2007.

The whole study can be termed as comparative study. It is also a desk research hence; there is no field work and collection of primary date for this research.

The study centres on comparing equity and mutual fund schemes in respect of their risk, return and liquidity. However, with the objective and scope of the study in mind, it was decided to base the study on return series of selected stocks and mutual fund schemes.

BSE being the premier exchange of India was chosen for selecting stocks. It is widely accepted that BSE Sensex is the one of the most reliable index of the stock exchange that reflects present day market condition. Since it is not possible to compare all the 30 scripts in the index with all Mutual Fund Schemes due to time and resource constraints, sampling techniques were considered. Randomly selected samples will facilitate inference of the population, in our case BSE Sensex and mutual fund industry in India. Hence by stratified random sampling 5 scrip’s out of 30 Sensex and 5 mutual fund schemes out of whole mutual fund industry were selected.

The initial examination of the composition of index revealed that it is composed of primarily two types of industries: manufacturing and services in the ratio of 3:2. there for to give correct picture appropriate weight was assigned to manufacturing industries and hence three scrip’s from manufacturing and two from service industries were randomly selected and in case of mutual funds it consists basically large cap, mid cap, small cap, sectorial funds and contra funds therefore one fund from each area were selected.

Monthly share price and unit prices of the selected scrip’s and units were collected from historical data. In order to avoid bias, at least three years monthly data was decided to be necessary. The reference period is from 1st Apr, 2003 to 31st Mar, 2007.

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A Study on Effectiveness of Performance Appraisal of Employees

Appraising the performance of the individual, groups and organization is a common practice of all societies. While in some instance these appraisal processes are structured and formally sanctioned, in other instances they are an integral and informal part of daily activities. The teacher evaluates the performance of student, banker evaluates the performance of creditors, parents evaluate the performance of their children and all of unconsciously or unconsciously evaluate our own action from time to time. In social interaction, performance evaluation is done in a haphazard an often unsystematic way. But in organization formal programs of evaluating employee and managerial performance-conducted in a systematic and planned manner have achieved popularity in recent years.

During and after world war-1, the systematic performance appraisal was quite prominent. Credit goes to Walter dill Scott for systematic performance appraisal technique of man to man rating system (or merit rating). It was used for evaluating military officers. Industrial concern also used this system during 1920 and 1940’s for evaluating hourly paid workers.

However with the increase of training and management development programs from 1950’s management started adopting performance appraisal for evaluating technical, skilled, professional and managerial personnel as a part of training and managerial development programs. With this evolutionary process, the term merit rating and been charged into employee appraisal or performance appraisal. This is not mere change in the term but a change in the scope of the activity as the emphasis of merit rating was limited to personnel traits, whereas performance appraisal covers result, accomplishment and performance.

Therefore performance appraisal enables employee to get incentive treatment according to their potential, sincerity and capabilities. They get motivated by which, performance appraisal benefits not only employee but also the management in the form of greater productive efficiency.

India is called the “country of villages” where it covers nearly 70% of its total area. In this relation we can say that Indian economy is base on rural activities and their development. Therefore we have to give prime importance to the rural activities.

A dairy is a place for handling milk and milk products. Technology refers to the application of scientific knowledge for practical purposes. Dairy technology has been defined as that branch of dairy science which deals with the processing of milk and the milk products on an industrial scale. In developed dairying countries such as the USA the year 1850 is seen as the dividing line between farm and factory scale production.

Various factors distribute to this change in these countries such as the concentration of the population in cities where the jobs are plentiful, rapid industrialization, improvement of transportation facilities, development of machines etc., The rural areas are identified for the production, urban areas are for the processing of the milk.

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A Study on Performance Management of Mahindra and Mahindra

The management thesis focuses on Human resource study on performance management with reference to Mahindra and Mahindra. In the management thesis the information on the performance management is collected. The information about this is collected by the Show room which is located in Bidar as well as by the internet also.

I prepared a questionnaire to collect information from them. The main aim of the questionnaire is to collect the information of theory is practiced in practical or not. The questionnaire also helped me collect the information. It helped me to understand whether the employees are aware of the performance management or not.

I study that Successful organizations are embracing a new model of corporate performance management (CPM) – one that relies heavily on understanding data to improve future performance.

In their definitive text upon which this factsheet is based, Armstrong and Baron define performance management as 'a process which contributes to the effective management of individuals and teams in order to achieve high levels of organizational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved'. They go on to stress that it is 'a strategy which relates to every activity of the organization set in the context of its human resource policies, culture, style and communications systems. The nature of the strategy depends on the organizational context and can vary from organization to organization.'

It is about sharing expectations. Managers can clarify what they expect individual and teams to do; likewise individuals and teams can communicate their expectations of how they should be managed and what they need to do their jobs. It follows that performance management is about interrelationships and about improving the quality of relationships - between managers and individuals, between managers and teams, between members of teams and so on, and is therefore a joint process. It is also about planning - defining expectations expressed as objectives and in business plans - and about measurement; the old dictum is 'If you can't measure it, you can't manage it'. It should apply to all employees, not just managers, and to teams as much as individuals. It is a continuous process, not a one-off event. Last but not least, it is holistic and should pervade every aspect of running an organization.

Because performance management is (or should be) so all-pervasive, it needs structures to support it. These should provide a framework to help people operate, and to help them to help others to operate. But it should not be a rigid system; there needs to be a reasonable degree of flexibility to allow people freedom to operate. Performance management is a process, not an event. It operates as a continuous cycle. Corporate strategic goals provide the starting point for business and departmental goals, followed by agreement on performance and development, leading to the drawing up of plans between individuals and managers, with continuous monitoring and feedback supported by formal reviews.

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A Study on Level of employee Job satisfaction in Bharathi Associates

Job satisfaction describes how content an individual is with his or her job. It is a relatively recent term since in previous centuries the jobs available to a particular person were often predetermined by the occupation of the person’s parent. There are a variety of factors that can influence a person’s level of job satisfaction. Some of these factors include the level of pay and benefits, the perceived fairness of the promotion system within a company, the quality of the working conditions, leadership and social relationships, the job itself( the variety of tasks involved, the interest and challenge the job generates, and clarity of the job description/ requirements)

It is said that satisfied employee is a productive employee, any kind of grievance relating to organizational or personal to a greater extent influence on the job. So every organization is giving higher priority to keep their employees with satisfaction by providing several facilities which improves satisfaction and which reduces dissatisfaction.

Job Satisfaction is considered as a key issue by the entrepreneur where efforts are taken and programs are initiated. If an employee is not satisfied with the job there are chances for absenteeism, lob turnover, lower productivity. committing of mistakes, diverting energy for different types of conflicts keeping this thing in view all organizations are trying to identify the areas where satisfaction to be improved to get out of the above dangers

In this connection a survey was conducted on behalf of “Bharathi Associates” to identify the level of satisfaction in terms of strongly agree to strongly disagree on various job related factors. The Indian food industry is estimated to be worth over US $200 billion and according to the confederation of Indian industry (CII) is expected to grow to US $310 billion by 2015. India is one of the world’s major food products but accounts for less then 1.5 percent of international food trade. This indicates vast scope for both investors and exports.

India is the world second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. In this respect, the country is endowed with a large production base for a variety of raw materials covering food crops, commercial crops and fibers due to its varied agro-climatic conditions.

India is world’s largest producer of cereals and milk; second largest producer of rice, wheat sugar, fruits, and vegetables; third in cotton; and seventh largest producer of fish. Also, India has the highest number of plants approved by the US Food and Drug Administration (FDA) outside the USA.

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A Study on Job Rotation with special reference to Syndicate Bank

Increasing productivity, new product development, creativity and cutting time to market require a stable and productive work force. The stability and productivity of the work force can be dramatically increased by ensuring that every employee is challenged and excited about their job. Employee turnover and the associated loss of tacit and explicit knowledge disrupt team effectiveness and also slow product development.

An effective way of reducing turnover is a well thought out job rotation programme. Job Rotation Programmes (JRP) can not only reduce turnover but they also increase learning, and provide depth and strength of knowledge in the organization. Rotation programmes are more common in the development of top executives but there are also many reasons to use them for technical and new hire positions.

Since late 1980’s Job Rotation has been developed and mainstreamed as an active labor market tool in Denmark. Job Rotation originated in Denmark as a collaborative development amongst trade unions, employers and training institutes.

Many successful companies encourage rapid job rotation. Some have informal programmes while some have it as an essential part in their company’s employee development strategy.
Job rotation is where an individual is moved through a schedule of assignments designed to give that individual a breadth of exposure to the entire operation. The term job rotation can also mean the scheduled exchange of persons in offices, especially in public offices.

The word ‘Bank’ is used in the sense of a commercial bank. It is of Germanic origin though some person trace it origin to French word ‘Banqui’ and the Italian word ‘Banca’. It referred to a bench for keeping lending and exchanging of money lenders and money chargers. There was no such word as banking before 1640. All though the practice of safe keeping and saving flourished in the temple of Babylon as earlier as 2000 B.C. Chanakya in his Arthashastra written in about 300 B.C. mentioned about the existence of Merchant of Bankers who received deposits advanced loans and hundise.

The 1st bank in India was the ‘Bank of Hindustan’ started in 1770 by Alexander and co., an English agency house in Kolkata which failed in 1782 with the closer of the agency house. But the 1st bank in the modern sense was established in the Bengal presidency as the Bank of Bengal in 1806.

Merchant bankers issued ‘Hundis’ to remit funds in India such Merchant bankers were known as Seth’s. The next stage in the growth of banking was the Goldsmith he started charging something for taking care of the money and bullion.

The next stage in the growth of banking is the money lenders, the goldsmith found that on an average the withdrawal of coins were much less than the deposits with him. So he started advancing the coins on loan by charging interest as a safeguard he kept some money in the reserve thus the goldsmith –money lenders became a banker who started performing the 2 functions of modern banking that of accepting deposit and advancing loan.


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