awareness of mutual fund and its scope

8/4/2019 Awareness of Mutual Fund and Its Scope

1/64

A PROJECT REPORT

ONAWARENESS OF MUTUAL FUND AND ITS

SCOPE ATKARVY STOCK BROKING LTD.

BY


2/64

2007-2009

ACKNOWLEDGEMENT

I take immense pleasure in completing this project and submitting this final project report.

The whole summer internship period with KARVY STOCK BROKING LTD has been full oflearning and sense of contribution towards the organization. I would like to thank KARVYSTOCK BROKING LTD for giving us an opportunity of learning and contributing through this project. I also take this opportunity to thank all those people that made this experience amemorable one.

A successful project can never be prepared by the single efforts of the person to whom project

is assigned, but it also demand the help and guardianship of some conversant person whohelped the undersigned actively or passively in the completion of successful project.

In this context as a student of BHAIGURDAS INSTITUTE OF MANAGEMENT. I wouldfirst of all like to express my gratitude to Ms. Risha Bansal for assigning me such aworthwhile topic AWARENESS OF MUTUAL FUND AND ITS SCOPE to work uponin KARVY STOCK BROKING LTD.

The project couldnt have been complete without timely and vital help of other office staff.Special thank to Mr. Ninad Raghatate, Mr. Vikrant Joshi, Ms. Sonal Chopra for their

invaluable guidance, keen interest, cooperation, inspiration and of course moral supportthrough out my project session.

2


3/64

CERTIFICATE

This is to certify that from thehave successfully

complicated their term internship with Karvy Stock Broking Ltd.From to in partial fulfillment of MBAcurriculum as prescribed.

3


4/64

Mr. Ravi Gaikwad

(Senior Relationship Manager)

IND EX

NO. PARTICULARS.

PAGE.N

O.

1. ACKNOWLEDGEMENT 2.

2. CERTIFICATE 3.

3. EXECUTIVE SUMMARY 5.

4. COMPANY PROFILE 7.

5. INTRODUCTION TO MUTUAL FUND 16.

INVESTMENT & YOU

MUTUAL FUND & YOU

HISTORY OF MUTUAL FUNDS

TYPES OF MUTUAL FUNDS

ADVANTAGES & DRAWBACKS OF M. F.

AMFI & MUTUAL FUNDS

6. ANALYSIS OF PROJECT 34.

DATA COLLECTIONDATA INTERPRETATION

7. PROJECT FINDINGS & RECOMMENDATIONS 49.

8. BIBILOGRAPHY 51.

4


5/64

9. QUESTIONNAIRE 52.

EXE CUTI VE SUMMARY:-

The project titled AWARNESS OF MUTUAL FUND AND ITS SCOPEbeing carriedout forKARVY STOCK BROKING LTD.

Karvy operates in various financial products and services like Consultancy, Stock Broking,Mutual Funds, Insurance, Registrar and Transfer Agent, Research, Mapin etc.

The evaluation of financing planning has been increased through decades, which is best seen in

customer rise. Now a days investment of saving has assumed great importance.

According to the study of the Market, it is being observed that markets are doing well ininvestments like, Mutual funds, Shares etc. In near future a proper financial planning isrequired to invest money in all type of financial product because there is good potential inmarket to invest.

The main objective of this project is to know the current scenario of investment and thepeoples awareness of various instruments available for Tax planning and Personal FinancialAdvising facility provided by the KARVY STOCK BROKING LTD.

IT and Retail sector have been given more emphasis for the study of the project because it isthe only sector where all types of age group, Income class and different level of people arerepresented.

5


6/64

CO MPANYPROFILE

6


7/64

OVERVIE W:

KARVY, is a premier integrated financial services provider, and ranked among the topfive in the country in all its business segments, services over 16 million individual investors invarious capacities, and provides investor services to over 300 corporate, comprising the who iswho of Corporate India. KARVY covers the entire spectrum of financial services such as Stockbroking, Depository Participants, Distribution of financial products - mutual funds, bonds,fixed deposit, equities, Insurance Broking, Commodities Broking, Personal Finance AdvisoryServices, Merchant Banking & Corporate Finance, placement of equity, IPOs, among others.Karvy has a professional management team and ranks among the best in technology, operations

and research of various industrial segments.

EAR L Y D A Y S:

The birth of Karvy was on a modest scale in 1981. It began with the vision and enterprise of asmall group of practicing Chartered Accountants who founded the flagship company KarvyConsultants Limited. Company started with consulting and financial accounting automation,and carved inroads into the field of registry and share accounting by 1985. Since then, theyhave utilized their experience and superlative expertise to go from strength to strengthtobetter their services, to provide new ones, to innovate, diversify and in the process, evolvedKarvy as one of Indias premier integrated financial service enterprise.

Thus over the last 20 years Karvy has traveled the success route, towards building a reputationas an integrated financial services provider, offering a wide spectrum of services. And we havemade this journey by taking the route of quality service, path breaking innovations in service,versatility in service and finallytotality in service. Their highly qualified manpower, cutting-edge technology, comprehensive infrastructure and total customer-focus has secured for themthe position of an emerging financial services giant enjoying the confidence and support of anenviable clientele across diverse fields in the financial world.

7


8/64

Mi le Stones:

KarKarvvyy milestonmilestoneess

2003/04

Equity Derivatives broking commencedExpanding Institutional segment clientele. Setting up of the Research

desk and Private Client Group at Mumbai2001

Custodial (DP$) services launched

Distribution of investment products (mutualfunds, IPOs, Bonds, etc)

Commenced NSE operations

1990-95

1997ADTO in broking crosses Rs 4,500 mn

Ranked@ no 1in IPO and in Mutual funddistribution in 2003-04

DP accounts exceed 640,000Broking accounts exceed 220,000 (retail)

WDM#

membership obtainedBranches 495+Commenced commodity and insurance broking

operations

1990Retail broking operations (Cash segment)

commenced on the HSE**

1985Share Registry and Transfer (R&T)Business recently hived off to a JV with

Computershare, Australia

1982

$ - Depository business# - Wholesale Debt Market segment on the NSE@ - by number of applications mobilised* - High Networth Individual segment** - Hyderabad Stock Exchange

8


9/64

KARVY GROUP COMPANIES

(1) KARVY CONSULTANTS LIMITED

As the flagship company of the Karvy Group, Karvy Consultants Limited has always remainedat the helm of organizational affairs, pioneering business policies, work ethic and channels ofprogress.

Having emerged as a leader in the registry business, the first of the businesses that Karvyventured into, company have now transferred this business into a joint venture with Computershare Limited of Australia, the worlds largest registrar. With the advent of depositories in theIndian capital market and the relationships that Company have created in the registry business,Karvy believe that they were best positioned to venture into this activity as a Depository

Participant. Karvy were one of the early entrants registered as Depository Participant withNSDL (National Securities Depository Limited), the first Depository in the country and thenwith CDSL (Central Depository Services Limited). Today, Karvy service over 6 lakhscustomer accounts in this business spread across over 250 cities/towns in India and are rankedamongst the largest Depository Participants in the country. With a growing secondary marketpresence, they have transferred this business to Karvy Stock Broking Limited (KSBL), theirassociateand a member of NSE, BSE and HSE.

The corporate website of the company, w w w .kar v y .c om, gives access to in-depthinformation on financial matters including Mutual Funds, IPOs, Fixed Income Schemes,

Insurance, Stock Market and much more. A link called Resource Center, devoted solely toresearch conducted by team of experts on various financial aspects like Sector Research,deals exclusively within-depth analysis of the key sectors of the Indian economy. Besides, a host of other links likeMy Portfolio which acts as a personalized and customized financial measure, makes this siteextremely informative about investment options, market trends, news and also about our theircompany and each of the services offered here.

(2) KARVY STOCK BROKING LIMITED

Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely

towards attaining diverse goals of the customer through varied services. Creating a plethora ofopportunities for the customer by opening up investment vistas backed by research-basedadvisory services. Here, growth knows no limits and success recognizes no boundaries.Helping the customer create waves in his portfolio and empowering the investor completely isthe ultimate goal.

Karvy is a Member of National Stock Exchange (NSE), The Bombay Stock Exchange (BSE),and The Hyderabad Stock Exchange (HSE).

(3) KARVY IN VESTORS SERVICES LIMITED

9
http://www.karvy.com/http://www.karvy.com/


10/64

Merchant Banking- Recognized as a leading merchant banker in the country, Karvy areregistered with SEBI as a Category I merchant banker. This reputation was built by capitalizingon opportunities in corporate consolidations, mergers and acquisitions and corporaterestructuring, which have earned us the reputation of a merchant banker. Raising resources forcorporate or Government Undertaking successfully over the past two decades have given us the

confidence to renew company focus in this sector.

Karvy quality professional team and their work-oriented dedication have propelled company tooffer value-added corporate financial services and act as a professional navigator for long termgrowth of companies clients, which includes leading corporate, State Governments, foreigninstitutional investors, public and private sector companies and banks, in Indian and globalmarkets.

Karvy financial advice and assistance in restructuring, divestitures, acquisitions, de-mergers,spin-offs, joint ventures, privatization and takeover defense mechanisms have elevatedcompany relationship with the client to one based on unshakable trust and confidence.

(4) KA R VY COMPUTE R SHARE P V T . LIMIT E D

Karvy have traversed wide spaces to tie up with the worlds largest transfer agent, the leadingAustralian company, Computershare Limited. The company that services more than 75million shareholders across 7000 corporate clients and makes its presence felt in over 12countries across 5 continents has entered into a 50-50 joint venture with KARVY.

Mutual Fund Services

Karvy have attained a position of immense strength as a provider of across-the-board transfer

agency services to AMCs, Distributors and Investors.

Nearly 40% of the top-notch AMCs including prestigious clients like Deutsche AMC and UTIswear by the quality and range of services that company offer. Besides providing the entireback office processing, Karvy provide the link between various Mutual Funds and the investor,including services to the distributor, the prime channel in this operation.

Karvy service enhancements such as Karvy Converz', a full-fledged call center, a top-linewebsite ( ww w .kar v y m fs.c o m), the m-investor' and many more, creating a galaxy of customeradvantages.ww w .kar v y m fs.c o m

10
http://www.karvymfs.com/http://www.karvymfs.com/http://www.karvymfs.com/http://www.karvymfs.com/http://www.karvymfs.com/http://www.karvymfs.com/


11/64

Issue Registry

In company voyage towards becoming the largest transaction-processing house in the Indian

Corporate segment, KARVY have mobilized funds for numerous corporate, and emerged as thelargest transaction-processing house for the Indian Corporate sector. With an experienceof handling over 700 issues, Karvy today, has the ability to execute voluminous transactionsand hard-core expertise in technology applications have gained company the No.1 slot in thebusiness. Karvy is the first Registry Company to receive ISO 9002 certification in Indiathat stands testimony to its stature

Corporate S hareholder Services

Karvy has been a customer centric company since its inception. Karvy offers a single platformservicing multiple financial instruments in its bid to offer complete financial solutions to the

varying needs of both corporate and retail investors where an extensive range of services areprovided with great volume-management capability.

Today, Karvy is recognized as a company that can exceed customer expectations which is thereason for the loyalty of customers towards Karvy for all his financial needs. An opinion pollcommissioned by The Merchant Banker Update and conducted by the reputed marketresearch agency, MARG revealed that Karvy was considered the Most Admired in

the registrar category among financial services companies.

(5) KARVY GLOBAL SERVICES LIMITED

The specialist Business Process Outsourcing unit of the Karvy Group. The legacy of expertiseand experience in financial services of the Karvy Group serves us well as company enter theglobal arena with the confidence of being able to deliver and deliver well.

Here company offer several delivery models on the understanding that business needs areunique and therefore only a customized service could possibly fit the bill. KARVY servicematrix has permutations and combinations that create several options to choose from.

KARVY is in re-engineering and managing processes or delivering new efficiencies,companys service meets up to the most stringent of international standards. Their outsourcingmodels are designed for the global customer and are backed by sound corporate and operations

philosophies, and domain expertise. Providing productivity improvements, operational costcontrol, cost savings, improved accountability and a whole gamut of other advantages.

KARVY operate in the core market segments that have emerging requirements for specializedservices. Their wide vertical market coverage includes Banking, Financial and InsuranceServices (BFIS), Retail and Merchandising, Leisure and Entertainment, Energy and Utility andHealthcare.

11


12/64

(6) KA R VY COMMODI T IES BROKING LIMIT E D

At Karvy Commodities, they are focused on taking commodities trading to new dimensions ofreliability and profitability. They have made commodities trading, an essentially age-oldpractice, into a sophisticated and scientific investment option.

Company enables trade in all goods and products of agricultural and mineral origin that includelucrative commodities like gold and silver and popular items like oil, pulses and cotton througha well-systematized trading platform.

The technological and infrastructural strengths and especially the street-smart skills make theman ideal broker. Their service matrix is holistic with a gamut of advantages, the first andforemost being their legacy of human resources, technology and infrastructure that comes from

being part of the Karvy Group.

Their wide national network, spanning the length and breadth of India, further supports theseadvantages. Regular trading workshops and seminars are conducted to hone trading strategiesto perfection. Every move made is a calculated one, based on reliable research that is convertedinto valuable information through daily, weekly and monthly newsletters, calls and intradayalerts. Further, personalized service is provided here by a dedicated team committed to givinghassle-free service while the brokerage rates offered are extremely competitive.

Karvys commitment to excel in this sector stems from the immense importance thatcommodity broking has to a cross-section of investors & dash; farmers, exporters, importers,

manufacturers and the Government of India itself.

(7)KARVY INSURANCE BROKING PRIVATE LIMITED

At Karvy Insurance Broking Pvt. Ltd., they provide both life and non-life insurance products toretail individuals, high net-worth clients and corporate. With the opening up of the insurancesector and with a large number of private players in the business, they are in a position toprovide tailor made policies for different segments of customers. In their journey to emerge asa personal finance advisor, they will be better positioned to leverage their relationships with theproduct providers and place the requirements of their customers appropriately with the productproviders. With Indian markets seeing a sea change, both in terms of investment patternand attitude of investors, insurance is no more seen as only a tax saving product but also

as an investment product. By setting up a separate entity, we would be positioned to providethe best of the products available in this business to their customers.

KARVY have wide national network, spanning the length and breadth of India, furthersupports these advantages. Further, personalized service is provided here by a dedicated teamcommitted in giving hassle-free service to the clients.

12


13/64

KARVY Alliances

Karvy Computershare Private Limited is a 50:50 joint venture of Karvy Consultants Limitedand Computershare Limited, Australia. Computershare Limited is world's largest -- and onlyglobal -- share registry, and a leading financial market services provider to the global securitiesindustry.

The joint venture with Computershare, reckoned as the largest registrar in the world, servicingover 60 million shareholder accounts for over 7,000 corporations across eleven countriesspread across five continents. Computershare manages more than 70 million shareholderaccounts for over 13,000 corporations around the world.

Karvy Computershare Private Limited, today, is India's largest Registrar and Share TransferAgent servicing over 300 corporate and mutual funds and 16 million investors.

Qua lity Policy

To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, bycombining its human and technological resources, to provide superior quality financialservices. In the process, Karvy will strive to exceed Customer's expectations.

Quality Objective s

As per the Quality Policy, Karvy will:

Build in-house processes that will ensure transparent and harmonious relationships with itsclients and investors to provide high quality of services.

Establish a partner relationship with its investor service agents and vendors that will help inkeeping up its commitments to the customers.

Provide high quality of work life for all its employees and equip them with adequateknowledge & skills so as to respond to customer's needs.

Continue to uphold the values of honesty & integrity and strive to establish unparalleledstandards in business ethics.

13


14/64

Use state-of-the art information technology in developing new and innovative financialproducts and services to meet the changing needs of investors and clients.

Strive to be a reliable source of value-added financial products and services and constantly

guide the individuals and institutions in making a judicious choice of same.

Strive to keep all stake-holders (shareholders, clients, investors, employees, suppliers andregulatory authorities) proud and satisfied.

Achievements

Among the top 3 stock brokers in India (4% of NSE volumes)

India's No. 1 Registrar & Securities Transfer Agents

Top most Depository Participants

Largest Network of Branches & Business Associates

ISO 9002 certified operations by DNV

Among top 10 Investment bankers

Largest Distributor of Financial Products

Adjudged as one of the top 50 IT uses in India by MIS Asia

Full Fledged IT driven operations

14


15/64

INTODUCTIONTOMUTUALFUNDS

15


16/64

Int r odu c tio n :

Mutual funds are for everyone. Around the world, millions of investor invests in mutualfunds because of their safety, ease of investing and the many advantages they offer. It isvery necessary before investing that you know some basics of investing which are givenbelow.It is best option for those investors who dont have time to manage their fund.

Investm ents and y ou:

Investment is never an easy process. However, a sound understanding of some basicconcepts make the process of investment decision-making much easier and the experiencemuch more enjoyable. The following step can help you get started on your path to becoming asuccessful investor:

1. Identify your financial needs and goals:

The first step is to get a clear understanding of your own financial needs and goals. Askyourself the question When do I need money and for what purpose? List down your financialgoals and when they will materialise (daughters higher education after 6 years, purchase of ahouse after 10 years), and how much money you will need for the same. The answer will helpyou arrive at the time frame for your investment short term, medium term or long term.

Financial Goals Amount required

at todays price

Years to achieve

your goal

Investment horizon

Retirement

Daughters higher

Rs. 25 Lakhs

Rs. 2 Lakhs

20 years

6 years

Long term

Long term

16


17/64

Education

Buying a car

Sons computer

course

Rs. 4 Lakhs

Rs. 0.5 Lakhs

2 years

6 months

Medium term

Short term

2. Understand your tolerance to risk:

Before making an investment decision, it is very necessary for an investor to know hisrisk tolerance limits. Will he be comfortable with fluctuations in the value of his investments?Or would he prefer to settle down for a lower return without many ups and downs. By knowing

risk tolerance limit of himself an investor can decide his portfolio and also choose from avariety of financial investment tools , one which suit his portfolio the most.

3. Estimate your required rate of return:

Your required rate of return depends on your financial goals and the time you have to achieve them. Take anexample that your retirement goal at 58 years is Rs. 20 Lakhs and your monthly savings is Rs.5000, your required rate of return depending on your current age would be:

Present Age Returns

43 years

48 years

9.5 %

21.2%

As you can see, the later you start, the higher will be your required rate of return, hence as yourinvestment horizon reduces, for the same level of saving you may need to take higher risk.Alternatively, if you were not willing to take a higher risk, you would have to save a higher

amount every month- Rs 9800, almost twice the original savings required to achieve yourtarget accumulation.These three steps give a very basic idea about how to invest, when an investor is seeking

investment in different financial tools. Though there are different steps of investment in eachfinancial tool, these acts as blue print for them too.

17


18/64

Mutual Funds and You:

What is a mutual fund?

A mutual fund is a type of financial intermediary that pools the funds of investors who

seek the same general investment objective and invests them in a number of different types offinancial claims (e.g. equity shares, bonds, money market instrument). These pooled funds provide thousands of investors with proportional ownership of diversified managed byprofessional investment managers.

Where do mutual funds invest?

Broadly, mutual funds invest basically in three types of asset classes:Stocks: Stocks represent ownership or equity in a company. These are also called asshares.Bonds: These represent debt from companies, financial institutions or government agencies.

Money Market Instruments: These include short term debt instrument such as treasury bills,certificates of deposits and inter bank money.

History of Mu t ual Funds in Indi a :In India the setting up of Unit Trust of India (UTI) in 1963 marked the advent of mutual

fund industry. Unit Trust of India was set up by an Act of Parliament. The purpose ofestablishing of Unit Trust of India was to give a fillip to the equity market. In the wake of Indo-China war of 1962, there was shortage of savings going into industrial investment foreconomic development. There was a need to mobilize adequate amount of risk capital forindustrial enterprise. The household savings were sought to be channelized into primary and

secondary market through units. However, in the initial years, the emphasis in UTI was onincome product. MasterShare launched in 1986 ushered in the equity-oriented schemes inIndia. Unit Trust of India launched a variety of innovative products suited to meet diverseneeds of investors, virtually the complete life cycle of investors.

Evolution of Mutual Fund in India:

18


19/64

The mutual fund industry in India started in 1963 with the formation of Unit Trust ofIndia, at the initiative of the Government of India and Reserve Bank the. The history of mutualfunds in India can be broadly divided into four distinct phases.

First Phase: 1964-1987

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set upby the Reserve Bank of India and functioned under the Regulatory and administrative controlof the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the IndustrialDevelopment Bank of India (IDBI) took over the regulatory and administrative control in placeof RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI hadRs.6, 700 crores of assets under management.

Second Phase: 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation ofIndia (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987

followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund inDecember 1990.

At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004crores.

Third Phase: 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutualfund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was theyear in which the first Mutual Fund Regulations came into being, under which all mutualfunds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (nowmerged with Franklin Templeton) was the first private sector mutual fund registered in July1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensiveand revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI(Mutual Fund) Regulations 1996

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensiveand revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI(Mutual Fund) Regulations 1996

Fourth Phase: Since 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust ofIndia with assets under management of Rs.29, 835 crores as at the end of January 2003,representing broadly, the assets of US 64 scheme, assured return and certain other schemes.The Specified Undertaking of Unit Trust of India, functioning under an administrator andunder the rules framed by Government of India and does not come under the purview of theMutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It isregistered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation ofthe erstwhile UTI which had in March 2000 more than Rs.76, 000 crores of assets under

19


20/64

management and with the setting up of a UTI Mutual Fund, conforming to the SEBI MutualFund Regulations, and with recent mergers taking place among different private sector funds,the mutual fund industry has entered its current phase of consolidation and growth. As at theend of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under421 schemes.

The graph indicates the growth o f as sets over the y ears

20


21/64

Funds for All Reasons and All Season s :

TYPES OF MUTUAL FU N DS: -

Mutual Funds have specific investment objectives such as growth of capital, safety of principal current income or tax exempt income, one can select one fund or any number ofdifferent funds to help one meets ones specific goals. In general mutual fund fall under 3general categories: -

Equity fund invest in shares of common stocks.

Fixed income funds invest in government or corporate securities which offer fixed rateof returns.

Balanced fund invest in a combination of both stocks and bonds.

AGGRESSI VE GROWTH FUNDS :-

These funds seek to provide maximum growth of capital with secondary emphasis ondividend or interest income. They invest in common stocks with a high potential for rapidgrowth and capital appreciation.

Aggressive growth funds are suitable for those investors who can afford to assume therisk of potential loss in value of their investment in the hope of achieving substantial and rapidgains. They are not suitable for investors who must conserve their principal or who mustmaximize their current income.

GROWTH FUNDS:-

Like aggressive growth funds, growth fund generally invests in stocks for growth ratherthan income. They are considered more conservative in their approach because they usuallyinvest in established companies to achieve long-term growth. Growth fund provides lowcurrent income but the investor principal is more stable then it would be in an aggressivegrowth fund. While the growth potential may be less over the short term, many growth fundshave superior long-term performance records.

These funds are suitable for growth oriented investors but not investors who are unable toassume risk or who are dependent on maximizing current income from there investments.

21


22/64

GROWTH AND INCOME FUNDS:-

Growth and income funds seek long-term growth of capital as well as current income.The investments strategies use to reach these goals vary among funds.

Growth and income funds have low to moderate stability of principal and moderatepotential for current income and growth. They are suitable for investors who can assume somerisk to achieve growth of capital but want to maintain a moderate level of current income.

FIXED INCOME FUNDS:-

The goal of fixed income fund is to provide high current income consistent with thelevel of capital. Growth of capital is of secondary importance.

Fixed income funds offer a higher level of current income than money market funds, but

a lower stability of principal. Fixed income funds are suitable for investors who want tomaximize current income and who can assume a degree of capital risk in order to do so.

EQUITY FUNDS:-

Funds that invest in stocks represent the largest category of mutual fund. Generally theinvestment objective of this class of fund is long-term capital growth with some income. Thereare however many type of equity funds.

BAL A NCED FUND S:-

The Balanced funds aims to provide both growth and income. These funds invest in bothshares and fixed income securities in the proportion indicated in their offer documents. It is anidea for investors who are looking for the combinations of income and moderate growth.

MONEY MARKET FUNDS/ LIQUID FUNDS:-

For the cautious investors these funds provide a very high stability of principal whileseeking a moderate to high current income. They invest in highly liquid; virtually risk free,short-term debt securities of agencies of the Indian government, banks and corporation andtreasury bills. Because of their short-term investments, money market mutual funds are able tokeep a virtually constant unit price; only the yield fluctuates.Money market funds are suitable for those investors who want high stability of principal andcurrent income with immediate liquidity.

SPECIALITY / SECTOR FUNDS:-

These funds invest in securities of a specific industry or sector of the economy such ashealth care, technology, leisure, utilities or precious metals. The funds enable investor todiversify holding among many companies within an industry, a more conservative approachthan investing directly in one particular company.

22


23/64

Sector funds offer a opportunity for sharp capital gains in cases where the funds industryis in favor but also entail the risk of capital losses when the industry is out of favor. Whilesectors funds restrict holdings to a particular industry, other specialty funds such as index fundsgives investors a broadly diversified portfolio and attempt to mirror the performance of variousmarket averages.

OPEN ENDED SCHEMES:-

Open-ended schemes do not have a fixed maturity period. Investors can buy or sell units

at NAV- related prices from and to the mutual fund on any business day. These schemeshave unlimited capitalization, open-ended schemes do not have a fixed maturity, there is nocap on the amount you can buy from the fund and the unit capital keep growing. These fundsare not generally listed on any exchange.

Open-ended schemes are preferred for their liquidity. Such funds can issue and redeemunits any time during the life of schemes. Hence unit capital of open-ended funds can fluctuateon a daily basis. The advantages of open ended schemes are: -

1. Any time exit option2. Any time enter option.

CLOSE ENDED SCHEMES:-

Close-ended schemes have fixed maturity periods. Investors can buy into these fundsduring the period when these funds are open in the initial issue. After that such scheme cannotissue new units except in case of bonus or right issue. However after the initial issue you canbuy or sell units of the schemes on the stock exchange where they are listed. The market priceof the unit could vary from the NAV of the schemes due to demand and supply factor

23


24/64

HOW LONG TO KEEP INVESTMENT TO GET MAXIMUM RETURNS

Technically open-ended funds you can withdraw your investments even within a week,but to get desired returns positive time frame is required are:

Funds Time Period

Equity Funds 3 Years (plus)

Balanced Funds 18 months to 3 Years

MIPs 1 Year (plus)

Income Funds 6 months to 1 Year

Liquid Funds few days to 6 months

WHAT RETURNS CAN I EXPECT IF I KEEP MY MONEY FOR SUGGESTED

TIME FRAMES

Funds Returns

Sector funds 22% to 25% p.a

Balance funds 15% to 18% p.a

24


25/64

MIPs Pension Plans 12% to 15% p.a

Income Funds 10% to 12% p.a

Liquid Funds 7% to 9% p.a

The above-mentioned returns in the table are indicative and not assured. All investmentsin MUTUAL FUNDS are securities and are subject to market risk and the NAVs of theschemes may go up and down depending upon the factors and forces affecting the securitymarket including the fluctuations in the internal rates .The past performance of the MUTUALFUNDS is not indicative of future performance.

THE RISK RETURNS GRAPHS FOR VARIOUS FUNDS:-

Sector Funds

REquity Funds

E

T Balanced FundsUR Income FundsN

SLiquid Funds

RISKS

The above Graph shows the Risk and Returns generated by different Funds. Liquid Funds areless Risky and also generate less Returns where as Sector Funds are more Risky but generatemore Returns by the example of above two Funds it is clear that Risk and Returns are directlyproportional to each other. Other Funds like Equity Funds, Balanced Funds and Income Fundsare also gives the same percentage of Returns as the Risk involved.

25


26/64

ADVANTAGE OF MUT UAL FUND:-

The advantages of investing in a Mutual Fund are:

Diversification: The best mutual funds design their portfolios so individualinvestments will react differently to the same economic conditions. For example,economic conditions like a rise in interest rates may cause certain securities in adiversified portfolio to decrease in value. Other securities in the portfolio will respondto the same economic conditions by increasing in value. When a portfolio is balanced inthis way, the value of the overall portfolio should gradually increase over time, even ifsome securities lose value.

P r ofessional Manag e m ent: Most mutual funds pay topflight professionals to managetheir investments. These managers decide what securities the fund will buy and sell.

Regulatory oversight: Mutual funds are subject to many government regulations thatprotect investors from fraud.

Liquidity: It's easy to get your money out of a mutual fund. Write a check, make a call,and you've got the cash.

Convenience: You can usually buy mutual fund shares by mail, phone, or over the

Internet.

L o w cost: Mutual fund expenses are often no more than 1.5 percent of yourinvestment. Expenses for Index Funds are less than that, because index funds are notactively managed. Instead, they automatically buy stock in companies that are listed ona specific index.

T ranspa r en c y: Mutual Fund schemes are said to be Transparent because they showthe clear allocation of Funds to Investors.

26


27/64

F l exibi lit y: Mutual funds are flexible because they change time to time and also if anInvestor wants his money back before the maturity of the Fund He/she can easilyredeem it.

DRAWBACKS OF MUTUAL FUNDS:-

Mutual funds have their drawbacks and may not be for everyone:

No Guarantees:

No investment is risk free. If the entire stock market declines in value, the value of mutualfund shares will go down as well, no matter how balanced the portfolio. Investorsencounter fewer risks when they invest in mutual funds than when they buy and sell stockson their own. However, anyone who invests through a mutual fund runs the risk of losingmoney.

Fe es and comm issions:

All funds charge administrative fees to cover their day-to-day expenses. Some funds alsocharge sales commissions or "loads" to compensate brokers, financial consultants, orfinancial planners. Even if you don't use a broker or other financial adviser, you will pay asales commission if you buy shares in a Load Fund.

Ta xes:

During a typical year, most actively managed mutual funds sell anywhere from 20 to 70percent of the securities in their portfolios. If your fund makes a profit on its sales, you willpay taxes on the income you receive, even if you reinvest the money you made.

Manageme nt r isk:

When you invest in a mutual fund, you depend on the fund's manager to make the rightdecisions regarding the fund's portfolio. If the manager does not perform as well as you hadhoped, you might not make as much money on your investment as you expected. Ofcourse, if you invest in Index Funds, you forego management risk, because these funds donot employ managers.

27


28/64

ASSOCIATION OF MUTUAL FUNDS I N INDIA:-

With the increase in mutual fund players in India, a need for mutual fund association inIndia was generated to function as a non-profit organization. Association of Mutual Funds in

India (AMFI) was incorporated on 22nd August 1995.AMFI is an apex body of all Asset Management Companies (AMC), which has beenregistered with SEBI. Till date all the AMCs are that have launched mutual fund schemes areits members. It functions under the supervision and guidelines of its Board of Directors.

Association of Mutual Funds India has brought down the Indian Mutual Fund Industry toa professional and healthy market with ethical lines enhancing and maintaining standards. Itfollows the principle of both protecting and promoting the interests of mutual funds as well astheir unit holder

The objecti v es o f A s socia t ion o f Mutual Fun d s in Indi a:-

The Association of Mutual Funds of India works with 30 registered AMCs of thecountry. It has certain defined objectives, which juxtaposes the guidelines of its Board ofDirectors. The objectives are as follows:

This mutual fund association of India maintains high professional and ethical standardsin all areas of operation of the industry. It also recommends and promotes the top class business practices and code of conduct which is followed by members and relatedpeople engaged in the activities of mutual fund and asset management. The agenciesthat are by any means connected or involved. In the field of capital markets andfinancial services also involved in this code of conduct of the association.

AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual fundIndustry.

Association of Mutual Fund in India do represent the Government of India, the ReserveBank of India and other related bodies on matters relating to the Mutual Fund Industry.

It develops a team of well qualified and trained Agent distributors. It implements a program of training and certification for all intermediaries and other engaged in themutual fund industry.

AMFI undertakes all India awareness programmed for investors in order to promoteproper understanding of the concepts and working of mutual funds.

At last but not the least association of mutual fund of India also disseminateinformations on Mutual Fund Industry and undertakes studies and research eitherdirectly or in association with other bodies.

28


29/64

Regulatory Aspects:

Schemes of mutual funds:-

The Asset management company shall launch no schemes unless the trustees approve

such scheme and a copy of the offer has been filed with the Board.

Every mutual fund shall along with the offer documents of each scheme pay filing fees.

The offer document shall contain disclosures which are adequate in order to enable the

investors to make informed investment decision including the disclosure non maximum

investments proposed to be made by the scheme in the listed securities of the group

companies of the sponsor. A close-ended scheme shall be fully redeemed at the end of

the maturity period. Unless a majority of the unit holders otherwise decide for itsrollover by passing a resolution.

The mutual fund and asset management company shall be liable to refund the

application money to the applicants:-

If the mutual fund fails to receive the minimum subscription amount referred to in

clause (i) of sub- regulation.

If the moneys received from the applicants for units are in excess of subscription as

referred to in clause (ii) of sub-regulation.

The asset m anagem ent com pany shall issue to the applicant w hose:

Application has been accepted, unit certificates or a statement of accounts

Specifying the number of units allotted to the applicant as soon as possible

But not later than six weeks from the date of closure of the initial

Subscription list and or from the date of receipt of the request from the unit

29


30/64

Holders in any open ended scheme.

Rules Regarding Advertis e m e n t:-

The offer document and advertisement materials shall not be misleading or contain any

statement or opinion, which are incorrect or false.

Investm ent object ives and valuation policies:-

The price at which the units may be subscribed or sold the price at which such unit may at anytime be repurchased by the mutual fund shall be made available to the investors.

General Obligatio n:-

Every asset management company for each scheme shall keep and maintain proper book of accounts, records and document, for each scheme so as to explain itstransaction and to disclose at any point of time the financial position of each scheme

and in particular give a true and fair view of the state of affairs of the fund and intimateto the board the place where such books of accounts, records and documents aremaintained.

The financial year for all the scheme shall end as of March 31 of each year. Everymutual fund or the asset management company shall prepare in respect of eachfinancial year an annual report and annual statement of accounts of the schemes and thefund as specified in Eleventh Schedule.

Every mutual fund shall have the annual statement of accounts audited by an auditorwho is not in any way associated with the auditor of the asset management comp

Proc edure for Action In Case Of Default:-

On and from the date of the suspension of the certificate or the approval, as the case maybe, the mutual fund, trustees or asset management company, during the period of suspensionand shall be subject to the direction of the Board with regard to any records, documents, orsecurities that may be in its custody or control relating to its activities as mutual funds, trusteesor the asset management company.

Restric t io n s on Inves t m e nts:

A mutual fund scheme shall not invest more than 15% of its NAV in debt instrumentissued by a single issuer, which are rated not below investment grade by a credit ratingagency authorize to carry out such activity under the act. Such investment limit may beextended to 20% of the NAV of the scheme with the prior approval of the Board ofTrustees and the Board of Asset Management Company.

A mutual fund Scheme shall not invest more than 10% of its NAV in unrated debt

instrument issued by a single issuer and the total investment in such instruments shall

30


31/64

not exceed 25% of the NAV of the Board of Trustees and the Board of Assetmanagement.

No mutual funds under all its schemes should own more than 10% of any companys

paid up capital carrying voting rights.

Such transfers are done at the prevailing market price for quoted instrument on spot

basis.

The securities so transferred shall be in conformity with the investment objectives of

the scheme to which such transfer has been made.

A scheme may invest in another scheme under the same asset management company orany other mutual fund without charging any fees, provided that aggregated intercourseinter scheme investment made by all schemes under the same management or in

schemes under the management of any other asset management company shall notexceed 5% of the net asset value of the mutual fund.

The initial issue expenses in respect of any scheme may not exceed 6% of thefunds raised under that scheme.

Every mutual fund shall buy and sell securities on the basis of deliveries and shall in all

cases of purchases, take delivery of relative securities and in all cases of sale, deliverthe securities and shall in no case put itself in a position whereby it has to make short

sale or carry forward transaction or engage in Badla finance.

Every mutual fund shall get the securities purchased or transferred in the name of the

mutual fund on account of the concerned scheme, wherever investments are intended to

be of long-term nature.

Pending deployment of funds of a scheme a mutual fund can invest the funds of the

scheme in short term deposits of scheduled commercial banks.

No mutual fund scheme shall make any investment in;

Any unlisted security of an associate or group company of the sponsor or

Any security issued by way of private placement by an associate or groupcompany of the sponsor.

The listed securities of group companies of the sponsor which is in excess of

30% of the net assets (of all the schemes of a mutual fund)

31


32/64

No mutual fund scheme shall invest more than 105 of its NAV in the equityshares or equity related instrument of any company. Provided that, the limit of10 percent shall not be applicable for investments in index fund or sector orindustry specific schemes.

A Mutual fund scheme shall not invest more than 5% of its NAV in the equityshares or equity related investments in case of open-ended schemes and 10 % ofits NAV in case of close ended schemes.

S o m e fa c ts for the g r o wth of m utual funds in Indi a:-

100% growth in the last 6 years.

Number of foreign AMCs is in the queue to enter the Indian markets like Fidelity

Investments, US based, with over US$1trillion assets under management worldwide.

Our saving rate is over 23%, highest in the world. Only channelizing these savings in

mutual funds sector is required.

We have approximately 29 mutual funds which is much less than US having more than

800. There is a big scope for expansion.

'B' and 'C' class cities are growing rapidly. Today most of the mutual funds are

concentrating on the 'A' class cities. Soon they will find scope in the growing cities.

Mutual fund can penetrate rural like the Indian insurance industry with simple and

limited products.

SEBI allowing the MF's to launch commodity mutual funds.

32


33/64

ANALYSIS

33


34/64

PROBL EM STATEMENT:-

Due to the falling Rate of Interest on Bank deposits, it is obvious that Investment in

Mutual Fund will grow in year to come. However lack of Awareness of Mutual Fund is a

hindering factor in expected growth of Mutual Fund Business. Under noted problems are

envisaged in this area:

Difficult in convincing people for investment.Difficult to change mind of the investor according to age and

Profession.

Difficult to make an approach to investors.

Difficult to take an appointment with professional people.

Difficult to get the documents required for formalities from investors

Difficult to overcome an impassionate person who wants return in less time.

Difficult to follow up the people whose names are being stored in a data.

Difficult to remove the fear of risk from the minds of investors.

OBJ ECTIVE OF STUDY:-

In view of the problem cited above, the study aims at analyzing the following majorissues:

34


35/64

To know the awareness of MUTUAL FUND among people.

To know the different Asset management companies involve in MUTUAL FUND.

To know the different aspects of MUTUAL FUND according to different age, profession

etc.

To see the interest of people in investing in MUTUAL FUNDS.

To know the future of MUTUAL FUNDS in India.

To know the different attitudes of people regarding risk, rate of return, period of

investment etc.

To study the diversification of mutual fund.

METH ODOLOGY OF STUDY:

Research can be defined as a systemized effort to gain new knowledge. A research iscarried out by different methodologies which have their own pros and cons. Researchmethodology is a way to solve research in study and solving research problems along withlogic behind them are defined through research methodology. Thus while talking aboutresearch methodologies we are not only talking of research methods but also consider the logicbehind the methods. We are in context of our research studies and explain why it is being useda particular method or technique and why the others are not used. So that research result iscapable of being evaluated either by researcher himself or by others.

RESEARCH METHODOL OGY:

Research has its special significance in solving various operational and planning problem ofbusiness and industry. Research methodology is a way to systematically analyze the researchproblem.

A S SUMPTION S :

1. It has been assumed that sample of hundred represents the whole population2. The information given by the customer is unbiased

LITERATURE

SURVEY:

35


36/64

The project is based on pure findings of facts

Development of Working Hypothesis: The hypothesis could be developed by discussing withthe consulting department heads and guides about this exploratory research and reach to theconclusion that the data is to be collected by personal interaction with the clients, asking them

about their investment planning and their need for financial advisory service from KARVYStock Broking Ltd.First of all are they aware of tax and investment planning or not and then analyzing thefindings to reach to the objectives of research.

COLLECTION OF

D A T A:

This research is solely based on primary research done by means of questionnairestargeted to respondents who primarily belong to the business and service sector. The samplesize is 100.

a. Sampling Methods: A sample is the representative of the populations which will predictthe behaviors of the whole universe

b. The sampling size put under 2 categories: Probability Sampling and Non ProbabilitySampling.

EXECUTION OF PROJECT

It is very essential in the research process to know the accuracy of the findings which dependson how systematically the study has been carried out so that it can make sense.We have executed the project after prior discussion with our guide and structured in thefollowing steps:

a. Preparation of a questionnaire b. The focal point of the designing the questionnaire was to comprehend the current

investment scenarioc. This questionnaire was primarily aimed to respondents who belong to the service and

business class peopled. The questionnaires were discussed through personal interface with the respondents

LIMITATIONS OF STREAMLINING RESULTS:

36


37/64

Every work has its own limitations. Limitations are extent to which the process should notexceed. The following limitations for the project are:1. Duration of project was not enough to make our conclusion on such a vast subject.

Time constraints has also become a major limitation2. The sample size taken for drawing the conclusion was not sizeable

3. Investor ignorance was faced during discussions with respondents

Q1. Do you invest regularly?

YES 89

NO 11

TOTAL 100

Percentage of people makingany

investment

11%

YES

NO

89%

It has been observed that approximately 90% of the correspondents invest in some or the

other financial instrument. Though the percentage of choice of investment may vary due

to different factors such as age, education, risk etc.

37


38/64

Scientific Tools 47

By Intuition 53

Total 100

Q2. Do you invest using-

a. Scientific Tools b. By Intuition

It has been observed that there is no major difference between the percentage of people

who invest using scientific tools and those whose who believe in their intuition but it is

seen that the younger generation is more leaning towards usage of scientific tools than

their peers.

Methods of investment

47%scientifictoo ls

by intution53%

Q3. What are you preferred investment priorities?

a. Insurance

YES 77

NO 23

TOTAL 100

LIC

23%

YES

NO

77%38


39/64

about the falling interest rate in banks on fixed deposit.

c. Bonds & Debentures

YES 34

NO 66

TOTAL 100

YES 49

NO 41

TOTAL 100

A major chunk who have been interviewed it has been observed that almost 80% have

some kind of insurance policy. It has also been observed that though LIC is a public

sector undertaking, people of all ages have more faith in it as compared to other private

sector companies.

b. Bank (Fixed deposit)

Banks(Fixe d Deposit)

YES

NO

There is no major difference between the number of people who prefer keeping their

mone in fixed de osit and who dont o t for it. There is however a rowin concern

BONDS & Debentures

YES

NO

39


40/64

It has been observed that only 34% they have invested in Bonds and Debentures AS

compared to those who have not. This may be due to less knowledge about it or the time

of re-demption.

d. Equities & Share Market

YES 45

NO 55

TOTAL 100

Equity & Share Market

YES

NO

YES

NO

By the chart we observe that the percentage of people investing in equity and share

market is not much but there is a going interest among people especially the younger

generation to invest so as to make quick bucks with the market boom.

e. PPF

YES 43

NO 57

40


41/64

Out of the total people asked 57% said they invest in PPF and 43

g. Post Office Savings

YES 31

NO 69

TOTAL 100

YES 45

NO 55

TOTAL 100

TOTAL 100

PPF

43%

YES

NO

57%

% said they dont, but it

has been observed that from the people who said they invest the major chunk are people

from service sector.

f. NSC

NSC

45%

YES

NO

55%

Out of all the people questioned 45% said YES and 55% said NO. People who have said

that YES a major percentage are either business man or working people who want a fix

rate of return and security.

Post Office Savings

31%

YES

NO

69%

41


42/64

YES 41

NO 59

TOTAL 100

Out of the total correspondent only 31% they invest in post office savings. This could be

due to falling interest rate and better return by other tools.

h. Real Estate

YES 42NO 58

TOTAL 100

Real Estate

58%

42%

YES

NO

The correspondent who said YES are 42% and who said NO is 58% but this will change

as people are more comfortable in real estate and with falling interest rate people try to

find new avenue of investments.

i. Gold

Gold

59%

41%

YES

NO

42


43/64

Out of the total correspondent questioned 41% say they prefer to invest in gold while

59% say they dont.

j. Others

YES 39

NO 61TOTAL 100

OTHERS

61%

39%

Of all the correspondents asked only 39% said they have other options to invest other

than the conventional options.

Q4. What percentage of your income do you invest?

Below 10% 3010%-30% 57

30%-50% 10

Above 50% 3

About 60% of people said that they invest between 10%-60% of their total income in

some or other types of financial tools. A major chunk of people belonging to this

segment

43


44/64

are from IT sector who are young, large disposable income and have a little knowledge

about investment and are willing to take risk.

percentage of income invested

60

50

40

30 Series1

20

10

0

Below 10% 10%-30% 30%-50% Above 50%

Q5. Are you aware about mutual funds?

YES 88

NO 12

TOTAL 100

Aw arenes s about m utual funds

12%

YES

NO

88%

44


45/64

TOTAL 100

SAFE 15%

RISKY 25%

OTHERS 60%

TOTAL 100%

Only 12% of correspondent said they dont know any thing about mutual fund and 88%

said they know about mutual funds but what we found that they have just a primary or

very negligible knowledge about mutual funds and not really aware of the concept called

MUTUAL FUND.

Q6. What is your perception about mutual funds?

Pe rce ption about mutual funds

60%

50%

40%

60%30% Series1

20%25%

10% 15%

0%

Safe Risky Others

The percentage of person who say that mutual fund is safe is 5%, an those who say it is

risky is 25% but a major percentage of corresponds opt as other which is about 60%.

These are people who say that mutual funds are high risk and high gain or even people

who have no opinion.

Q7. Have you ever invested in mutual fund?

YES 41

NO 59investment in mutual funds

60

50

40

30

20

10

0Yes No

45


46/64

Out of the total correspondents asked about 41% have said that they had invested in

mutual funds before while 59% said NO. Out of the total people who have said yes a

majority of them are young, having disposable income and willingness to take risk.

Q8. Do you know different type of mutual scheme present in the market?

YES 36

NO 64

TOTAL 100

Types of mutual funds

100%

80%

60%

40%

20%

0%

Yes No

Out of total corresponds only 36% said that they know about various mutual schemes as

this number is very small it explains that people still dont know about various schemes in

the market. It also shows that even those who have bought mutual funds are still ignorant

about the different schemes.

Q9. How you choose a mutual fund?

BRAND NAME 35

HIGH NAV 26

HIGH RETURNS 15

ADVERTISING 12

OTHERS 12

46


47/64

TOTAL 100

Choosing of mutual fund

40

35

30

25

20

15

10

5

0

Brand Name High NAV High Returns Advertising Others

It has been observed that brand name does matter when people are choosing a mutual

fund as 35% said brand name. The next is NAV at about 26%. These two factors play

a major role during selection of mutual funds.

47


48/64

PROJECT FINDINGS AND

RECOMMENDATIONS

48


49/64

PROJECT FI N DING S :

There is great opportunity for Mutual Fund companies as there is a is a rise in number

of people who want to invest in share market but dont have time and knowledge to doso, also these people want to take less risk .

With booming market and falling interest rate of bank deposits, people see mutual

funds as an attractive financial tool which provide a high return rate at lower risk ascompared to equity market.

Young people these days are particularly more interested in mutual funds because they

see mutual fund as safe bet. Also these people have large disposable incomes and risktaking capability too.

The bad part is people are still ignorant about mutual funds and different schemes about

mutual funds, hence it is very necessary to educate them about mutual funds

Advertising can also play a major part as it has been seen that people buy mutual fund

looking at the brand name.

R E COMMEND A TIONS :

India is passing through a tremendous growth phase with an average growth rate of 7-

8% per annum. With this growth phase there is growth in each and every sector, hencethere is rush to by shares and equities. It is also a very good time for mutual fundcompanies but it is advisable for them and their brokers that they dont just sell mutualfunds but sell the right kind of scheme which is comfortable to a person nature oftaking risk and need,

There is a general ignorance and questions about, what are mutual funds? What aredifferent schemes of mutual funds? How to invest in a mutual? And many more. Thisthing should be handled by mutual fund companies and their brokers to provide

knowledge to their clients.

It has been seen that there is a major increase in the percentage of young investors whohave large amount of disposable income with them and want to invest, these type of

prospective clients should be tapped at an early stage.

49


50/64

Small towns, villages are still untapped and can also acts as an business area of very

huge potential.

Now even co-operative society can invest up to 10% of their capital in mutual funds

which open the door to new and very important client base.

BIBLIOGRAPHY

50


51/64

WE B:

ww w .k arv y .c o m

www.sundermutual.com

ww w .njindiainvest.c o m

ww w . m o n eycont r ol.c o mww w .a mfiindia.com

ww w .indi a m utual.c o m

BOOKS

MUTUAL FUND

PRODUCT AND SERVICES----

TAXMAN AMFI COURSE BOOK

INDIAN MUTUAL FUNDS HANDBOOK--

SUNDER SANKARAN

51
http://www.karvy.com/http://www.sundermutual.com/http://www.sundermutual.com/http://www.sundermutual.com/http://www.sundermutual.com/http://www.sundermutual.com/http://www.sundermutual.com/http://www.sundermutual.com/http://www.sundermutual.com/http://www.sundermutual.com/http://www.sundermutual.com/http://www.sundermutual.com/http://www.sundermutual.com/http://www.sundermutual.com/http://www.sundermutual.com/http://www.sundermutual.com/http://www.njindiainvest.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.amfiindia.com/http://www.indiamutual.com/http://www.karvy.com/http://www.sundermutual.com/http://www.sundermutual.com/http://www.njindiainvest.com/http://www.moneycontrol.com/http://www.amfiindia.com/http://www.indiamutual.com/


52/64

SAMPLE CASE STUDY

Name of Client: Sitender Singh

Contact No. : 9325644390Address : NDA Road Pune

Product Presentation

Done On : Mutual Funds

No.Of Appointment : 1

Done With Client

Date of appointment : 23/06/2008

Summery Of : Presentation was basically on thePresentation SIP

Closing Details

Product Closed : SBNPPSFAmount : 6000 (500*12)

52


53/64

SAMPLE CASE STUDY

Name of Client: Siddharth ( sitender) Singh

Contact No. : 9922196963

Address : NDA Road Pune




Done With Client


Summery Of : Presentation was basically on the

Presentation SIP

Closing Details

Product Closed : RRSF

Amount : 1200 (100*12)

53


54/64

SAMPLE CASE STUDY

Name of Client: Siddharth ( sitender) Singh

Contact No. : 9922196963





Done With Client



Presentation SIP

Closing Details

Product Closed : REF

Amount : 1200 (100*12)

54


55/64

SAMPLE CASE STUDY

Name of Client: Siddharth (sitender) Singh

Contact No. : 9922196963





Done With Client



Presentation SIP

Closing Details

Product Closed : RNRF

Amount : 1200 (100*12)

55


56/64

SAMPLE CASE STUDY

Name of Client: Siddherth (Sitender) Singh

Contact No. : 9922196963





Done With Client



Presentation SIP

Closing Details

Product Closed : REOF

Amount : 1200 (100*12)

56


57/64

SAMPLE CASE STUDY

Name of Client: Siddherth (Sitender) Singh

Contact No. : 9922196963





Done With Client



Presentation SIP

Closing Details

Product Closed : REAF

Amount : 1200 (1 00*12)

57


58/64

SAMPLE CASE STUDY

Name of Client: Mahesh Joshi

Contact No. : 9890192440Address : Gokhale Nager Pune




Done With Client



Presentation SIP

Closing Details


Amount : 1200 (100*12)

58


59/64

SAMPLE CASE STUDY

Name of Client: Saranga Joshi

Contact No. : 9403357504Address : Gokhale Nagar Pune




Done With Client



Presentation SIP

Closing Details


Amount : 1200 (100*12)

59


60/64

SAMPLE CASE STUDY

Name of Client: Mukash Panday

Contact No. : 9860930122Address : Atul Nagar Pune



No. Of Appointment : 1

Done With Client



Presentation SIP

Closing Details


Amount : 3000 (250*12)

60


61/64

SAMPLE CASE STUDY

Name of Client: Mukesh Panday

Contact No. : 9860930122Address : Atul Nagar




Done With Client



Presentation SIP

Closing Details


Amount : 3000 (250*12)

61


62/64

Ques tionna ire

1. Are you a regular investor?

a. Yes b. No

2. Do you invest using

a. Scientific Tools b. By Intuition

3. What are your preferred investment priorities?

Name of Investment

Insurance

Bank

Bonds & Debentures

Equities & Share Market

PPF (Public Provident Fund)

NSC (National Saving Schemes)

Post Office Saving SchemesReal Estate

Gold

Others

4. What percentage of your income do you invest?

a. Below 10% b. 10% - 30%c. 30% - 50%d. Above 50%

5. Are you aware about Mutual Funds?

a. Yes b. No

6. What is your perception about Mutual Funds?

a. Safe

62


63/64

b. Riskyc. Others

7. Have you invested in some Mutual Funds?

a. Yes b. No

8. Do you know different type of Mutual Fund scheme present in the market?

a. Yes b. No

9. How do you select and choose Mutual Funds?

a. Brand Name b. High NAVc. High Dividends d. Advertisement

e. Others

Demographics

1. NAME:

2. AGE: SEX: M / F

3. MARTIAL STATUS:

4. PROFESSION:

5. ANNUAL INCOME:a. Less than Rs. 1, 00,000/-

b. 1, 00,000 - 1, 50,000/-

c. 1, 50,000 - 2, 50,000/-

d. 2, 50,000 - 5, 00,000/-e. Above 5,00,000/-

6. Contact Number:

7. Email ID :

63


64/64

*************************Thank you****************************

awareness of mutual fund and its scope

Documents