In the last lecture, we saw how to calculate Petroski f score for a particular stock. Now we apply that knowledge of Petrovsky f score to a mutual fund. For the purpose of illustration, we consider sunlight pure value fund. As an example, we noticed that the top 10 holdings of this particular fund includes State Bank of India ici ci bank SRF limited petrol LNG dabber, India, Gujarat alkalis and chemicals limited debug nitrite PTC India's the entertainment in the sub Petroleum Corporation Limited now for all of these stocks, we have granted the values of p PV and dividend deal. Now from the value of p PV and dividend deal, we get that said Bank of India because alkalis and chemicals limited PTC India and Hindustan petroleum qualifier value stocks, those State Bank of India and business alkalis and chemicals limited have low dividend yield, he will still consider them as a value stock.

Basically, because our two parameters they qualify as a value stock. Remember that Petroski only considers the price to book value as the criteria for evaluating whether a stock is a value stock or a growth stock. I have rearranged the stocks to put the value stocks together and the growth stocks together. Notice that these top 10 holdings of this particular fund constitute 27.48% of the total holdings of this particular fund. Our purpose is to come to a score of four the ABS RPO value fund, we should be able to use this code to compare this particular fund with any other mutual fund and see which is better. We find that this mutual fund is invested in both value funds and growth funds.

This will be the case with most of the mutual funds So, we should be able to evaluate the value fund separately and the growth fund separately and put the two scores together to form a single score for the mutual fund. In the next section, we will see a mechanism how we can score the growth stocks. For now, we have the mechanism for scoring the value stocks. Now in ABS a pure value fund, we find that there are four value stocks and the full value stocks constitute 10.85% of the portfolio. Now this 10.85% of this portfolio is 10.85% of 27.48%. So the value stocks contribute 10.85% of 27.48% that is 39.48% towards the total score of ABS a pure value fund.

Now from the top 10 holdings of a BSL pure value fund, I have taken out the value stocks and kept them separately As you can see here, now we just calculated that the weight of these four stocks towards the score of ABS LPL value fund will be 39.48%. Now also we calculated the F score for goods, balconies and chemicals limited when we were discussing Petroski f score. So good without alkalis and chemicals limited, get an F score of eight. Now, Google has alkaloids and chemicals limited have a allocation of four 2.42% in a BSL pure value fund. So we multiply 2.42% by Petrovsky f score eight and get 0.1936. So good job alkalis.

And chemicals limited contribute a score of 0.1936 towards the F score off ABS a pure value fund. Now let's calculate the F score for State Bank of India. studied the annual reports of State Bank of India for the year 2017 18 and for the financial year 2016 70. From that I gathered the figures and this is what the result shows on return of assets, the value added value is 1.557 which is greater than zero and thus it said Bank of India gets a score of one on cash flow from operations. The State Bank of score India score is minus 0.490, which is less than zero and so State Bank of India gets a score of zero Delta zero a for State Bank of India works out to 0.054 which is greater than zero and the State Bank of India gets a score of one. Now accruals for our travels, you find that the CFO is less than RA and so State Bank of India gets a score of zero in terms of greater leverage, State Bank of India score is minus 0.178.

So State Bank of India gets a score of one In terms of delta liquid State Bank of India score is minus 0.007. So it gets a score of zero said Bank of India did not give any equity capital. So its score is zero, delta margin is minus 0.030. So the score is zero and delta turnovers minus 10.0806 so the score is zero. So, when we add the nine parameters score, we get the F score for State Bank of India is three. Now, I plan the State Bank of India's f score calculation on the ABS welfare value funds chart.

Now, you notice that the F score for State Bank of India is three its allocation is 4.46%. So the contribution of State Bank of India towards a PSLF f score is 4.46% into three which is equal to 0.1338. Next, I calculated the F score for PTC India Limited by studying the answer reports of frequency India for the financial year 2017 18 and for the financial year 2016 17. The F score for PTC India box out to six. So I plan the F score of PTC India Limited on the ABS and pure value funds chart. Now we see that PTC India Ltd has allocation of 2.01% in aviation to for pure value fund.

So, the contribution of PTC India towards ABS LP value funds f score is 2.01% into six which is 0.1206. Lastly is calculate the F score of Hindustan Petroleum Corporation Limited studying the annual reports from 2017 18 financial year and 2016 17 financial year. Now, the F score find this on Petroleum Corporation Limited works out to five now I plant the F score of Hindustan Petroleum Corporation Limited on As a pure value funds chart, we notice that in the sun Petroleum Corporation Limited has a contribution of 1.96% in the ABS or pure value fund. So the innocent Petroleum Corporation Limited contribution towards f score of ABS and pure value fund is five into 1.96%, which works out to 0.0980. So now we have the F score of all the four value stocks in ABS LP value funds, top 10 holdings. Now, we calculated the contribution of all these four stocks towards ABS elfia value fund, f score.

What we do is we add up all these contributions to arrive at a figure of 0.546. Previously, we had calculated that from the allocation of the stocks in ABS a pure value fund value stocks have a weight age of 39.48% So, the F score what we got for the value stocks of 0.546, we multiply by 34 39.48% to get a score of 0.216. So this 0.216 is the contribution of these four value stocks in the ABS LP value funds score. We will then find the similar contribution from the growth stocks and we will see how to use the growth stocks g score and the value stocks f score to find a consolidated score for a BSL pure value Fund, which can be used to compare it with other funds. Thank you for listening. See you in the next lecture.