CHAPTER 1INTRODUCTIONINTRODUCTION

COMPANY DETAILS

Background

Karvy Consultants Limited was established in 1982 at Hydrabad. It was established by a group of Hydrabad-based practicing Chartered Accountants. At initial stage it was very small in size. It was started with a capital of

Rs.1,50,000.

In starting it was only offering auditing and taxation services. Later, it acts into the Registrar and Share transfer activities and subsequently into financial services and other services like Financial Product Distribution, Investment Advisory Services, Demat Services, Corporate Finance, Insurance etc.

All along, Karvys strong work ethics and professional background leveraged with Information Technology enabled it to deliver quality to the individual. A decade of commitment, professional integrity and vision helped Karvy achieving a leadership position in its field when it handled largest number of corporate and retail that proved to be a sound business synergy.

Today, Karvy has access to millions of Indian shareholders, besides companies, banks, financial institutions and regulatory agencies. Over the past one and half decades, Karvy has evolved as a veritable link between industry, finance and people.

In January 1998, Karvy became first Depository Participant in Andhra Pradesh. An ISO 9002 Company, Karvys commitment to quality and retail reach has made it an Integrated Financial Services Company.

Today, company has 230 branch offices in 164 cities all over the India. The company adds 5 new offices every month to the companys ever growing national network in every nook and corner of the country. The company service over 16 million individual investors, 180 corporate and handle corporate disbursements that exceed Rs.2500 Crores.WHERE KARVY STAND IN THE MARKET?

KARVY is a legendary name in financial services, Karvys credit is defined by its mission to succeed, passion for professionalism, excellent work ethics and customer centric values.

Today KARVY is well known as a premier financial services enterprise, offering a broad spectrum of customized services to its clients, both corporate and retail. Services that KARVY constantly upgrade and improve are because of companys skill in leveraging technology. Being one of the most techno-savvy organizations around helps company to deliver even more cost effective financial solutions in the shortest possible time.

What bears ample testimony to Karvys success is the faith reposed in company by valued investors and customers, all across the country. Indeed, with Karvys wide network touching every corner of the country, even the most remote investor can easily access Karvys services and benefit from companys expert advice.

KARVY GROUP

Karvy Consultants Limited

Karvy Comtrade Limited

Karvy Insurance Broking limited

Karvy Realty (India) Limited

Karvy Globle Service Limited

Karvy Data Management Service Limited

Karvy Financial Service Limited

Karvy Investor Services Limited

Karvy Stock broking Limited

Karvy Computer Shares Pvt. Ltd.

Mission Statement of Karvy

An organization exists to accomplish something or achieve something. The mission statement indicates what an organization wants to achieve. The mission statement may be changed periodically to take advantage of new opportunities or respond to new market conditions.

Karvys mission statement is To Bring Industry, Finance and People together.

Karvy is work as intermediary between industry and people. Karvy work as investment advisor and helps people to invest their money same way Karvy helps industry in achieving finance from people by issuing shares, debentures, bonds, mutual funds, fixed deposits etc.

Companys mission statement is clear and thoughtful which guide geographically dispersed employees to work independently yet collectively towards achieving the organizations goals.

Vision of Karvy

Companys vision is crystal clear and mind frame very directed. To be pioneering financial services company. And continue to grow at a healthy pace, year after year, decade after decade. Companys foray into IT-enabled services and internet business has provided an opportunity to explore new frontiers and business solutions. To build a corporate that sets benchmarks for others to follow.

Karvy Values:

Integrity

Responsibility

Reliability

Unity

Understanding

Excellence

Confidentiality

Karvy has adequate internal control systems and procedures commensurate with the size nature of its business. These system and procedures provide reasonable assurance of maintenance of proper accounting records, reliability of financial information, protection of resources and safeguarding of assets against unauthorized use.

KARVY SERVICES AN OVERVIEW

1. Stock broking

2. Demat services

3. Investment product distribution

4. Investment advisory services

5. Corporate finance & Merchant banking

6. Insurance

7. Mutual fund services

8. IT enabled services

9. Registrars & Transfer agents

10. Loans

1.Stock Broking:

KARVY is working as Capital Market Intermediaries. Stockbrokers are regulated by SEBI [Stock-brokers and Sub-brokers] Regulations, 1992. The stockbroker is a member of the stock exchange. Stockbrokers are the intermediaries who are allowed to trade in securities on the exchange of which they are members. They buy and sell on their own behalf as well as on behalf of their clients.

Stockbrokers expand their business by engaging sub-broker. Sub-brokers mean any person not being a member of a stock exchange who acts on behalf of a stock broker as an agent or otherwise for assisting the investors in buying, selling or dealing in securities through such stock-brokers.

2. Demat Services:

Karvy is a depository participant with the National Securities Depository Limited (NSDL) for trading and settlement of dematerialized shares.

Depository Participants (DPs) are described as an agent of the depository. They are intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between the two under Depositories Act.

A DP can offer depository-related services only after obtaining a certificate of registration from SEBI.

Since Karvy is also in the broking business, investors who use Karvys depository services get a dual benefit. They can use Karvys brokerage services to execute transactions and Karvys depository services to settle them.

3. Investment Products Distribution:

Company is also concern with the distribution of investment products like

(a).Fixed Deposit

(b).Bonds

(c).IPO

5 (a). Fixed Deposit:

KARVY is dealer of 34 fixed deposits of various types which includes fixed deposits of Public Sector, Non Banking Finance Companies, Housing Finance Companies and Manufacturing Companies.

Company is dealer of following Fixed Deposits4Cholamandalam Investment & Finance Co. Ltd.

5Escorts Finance Ltd.

6First Leasing Company of India Ltd.

7IDBI Suvidha

8Nicco Uco Alliance Credit Ltd.

[FD of Non Banking Finance Companies with which Karvy deals]

HOUSING FINANCE COMPANIES

Sl. No.Company Name

1Can Fin Homes Ltd.

2Dewan Housing Finance Corporation Ltd.

3Gruh Finance Ltd.

4HDFC Ltd.

5PNB Housing Finance Ltd.

6Sundaram Home Finance Ltd.

[FD of Housing Finance Companies with which Karvy deals]MANUFACTURING COMPANIES

Sl. No.Company Name

1A P Paper Mills Ltd.

2Amtek India Ltd.

3Atul Ltd.

4Ballarpur Industries Ltd.

5Chambal Fertilizers & Chemicals Ltd.

6Escort Ltd.

7Greaves Ltd.

8Gujarat Alkalies & Chemicals Ltd.

9Indian Express

10Ind-Swift Ltd.

11JK Industries Ltd.

12Jindal Steel & Power Ltd.

13Sound Craft Industries Ltd.

14Supreme Industries Ltd.

15Zuari Industries Ltd.

[FD of Manufacturing Companies with which Karvy deals](b). Bonds:

Karvy is dealer of following bonds

RBI Saving Bonds

NHB

REC(c). IPO:

Company is also provides services related to Initial Public Offer of company. Company provides stationary at the time of IPO as well as provides information to investors regarding IPO and solves their queries.

4. Investment Advisory Services:

This division provides portfolio management services to high net-worth individuals and corporate. The expertise of Karvy in research and stock broking gives it the right perspective to provide investment advisory services. Company provides advisory services to its clients.

Financial goal of each individual investor varies according to his dream, ambition and family size and future financial planning for the children & old age pension for self and wife so does the pathway to achieve it. Karvy apply the principles of Financial Planning as both science & art, it understands the time horizon, risk bearing capacity and investment goals of investors keeping in mind their psyche and financial needs. Based upon this Karvy helps individual investors to plan their entire life up to retirement, Taxes, Insurance needs and other important personal financial goals. It designs portfolio for investor to invest their saving in various financial products like shares, bonds, debentures, mutual funds, fixed deposits, insurance etc., Company design portfolio by considering following factors.

Investors requirement of getting money back,

Investors willingness to take risk,

Investors tax planning etc.

5. Corporate finance & Merchant banking:

Corporate finance is the financial activity of corporation. It deals with the firm's operations with regard to investing and financing. It concerned with how firms raise capital and the consequences of alternative methods of raising capital. Firms capital can be raised by raising loans, issuing shares, and acquiring or merging with other businesses by public or private companies.

Merchant banking is a financial intermediation that matches entities that need capital and those that have capital. Hence they facilitate the flow of capital in the market.

Karvy enjoys SEBI category (I) authorization for Merchant Banking. Karvy offers the full spectrum of Merchant Banking Services, beginning from identifying the best time for an issue to final stage of marketing it, to harvest unparalleled success.As a merchant banker Karvy offer following services:

Issue management

Instrument designing

Pricing of the issue

Registration process for the issue of shares

Marketing efforts

Final allotment to investors

Listing details on stock exchanges

Loan syndication Lease financing Corporate advisory services Underwriting Portfolio management6. Insurance:

Karvy is also dealer of many private life insurance companies. At New Delhi, Motinagar branch, company is associated with dealing of following companies.

ICICI Prudential Life Insurance

HDFC Life Insurance

TATA AIG Life Insurance

7. Mutual Fund Services:

Since its inception in 1982, Karvy has demonstrated a dedication coupled with dynamism that has inspired trust from various segments corporate, government bodies and individuals. Karvy has since been performing a pivotal role as the intermediary the interface between these players.

With Mutual Funds emerging as a distinct asset class, Karvy has made a strategic choice to leverage the power of latest technology to provide a cutting edge to its services. Karvy, today, service nearly 80% of the asset management companies (AMCs) across an extensive network of service centers with assets under service in excess of Rs.10,000 crores.

Karvy's ability to mass customize and offer a diverse range of products for a diverse range of customers has helped mutual fund companies to uniquely position themselves in the market place. These diverse range of services cut across multiple delivery channels service centers, web, mobile phones, call center has brought home the benefits of technology to investors, distributors, and the mutual funds.

Going forward, Karvy shall strive to create new products and services, which would address the needs of the end customer. Companys single minded focus in delivering products for customers has given it the distinguished position of being the preferred provider of financial services in the country.

List of Mutual Fund Clients of KARVY:

1Alliance Mutual Fund

2Birla Mutual Fund

3Bank of Baroda Mutual Fund

4Can Bank Mutual Fund

5Chola Mutual Fund

6Deutsche Mutual Fund

7DSP Merrill Lynch Mutual Fund

8Franklin Templeton Investments

9GIC Mutual Fund

10HDFC Mutual Fund

11HSBC Mutual Fund

12IL & FS Mutual Fund

13JM Mutual Fund

14Kotak Mutual Fund

15LIC Mutual Fund

16Punjab National Bank Mutual Fund

17Prudential ICICI Mutual Fund

18Principal Mutual Fund

19Reliance Mutual Fund

20State Bank of India Mutual Fund

21Standard Chartered Mutual Fund

22Sundaram Mutual Fund

23SUN F&C Mutual Fund

24Tata Mutual Fund

[List of MF Companies with which Karvy deals]8. Income Tax enabled services:

Karvy has been started this service since March, 2004. Karvy is work as TIN Facilitation Centre it provides following IT enabled services.

a. Distribution of PAN Card.

b. Distribution of TAN Card.

c. Services related to e-TDS.

Karvy work as an intermediary between NSDL and IT payers. Karvy provides various form for different IT enabled services and guide people to fill that forms. It also solves queries of the tax payers. It also distributes PAN and TAN card to the tax payers.

TIN Overview

National Securities Depository Ltd. (NSDL) has established a nationwide Tax Information Network (TIN) on behalf of the Income Tax Department (ITD). This is designed to make the tax administration more effective, furnishing of returns convenient, reduce compliance cost and bring greater transparency.

While NSDL will be the primary agency responsible for the design, implementation and maintenance of TIN as per the requirements of ITD, other agencies will also play key roles in the TIN system.

Karvy has established infrastructure required to provide IT enabled services so, Karvy provides TIN facilitation centers all over India on behalf of NSDL. Besides Karvy following companies can also work as intermediary between NSDL and customers.

Alankit Assignments Ltd.

Integrated Enterprise (I) Ltd.

Shell Tran source Ltd.

9 Registrars & Transfer agents:

In1985, Karvy enteredthe Registrar andShare Transfer Business to create a market niche in the competitive field of financial services. In 1994-95, itreached a milestonewhen it processed 104 Public Issues constituting 46 per cent market share. Now in its second decade of existence,Karvy is the leader in the industry: In an opinion poll conducted by an independent market research agency - MARG, Karvy has been rated as Indias Most Admired Registrar on various parameters: -

Overall Excellence.

Handling of Volumes

Timely Dispatch

Quality Management and Technological Up gradation.

A SEBI Category 1 Registrar, So far,Karvy has handled over 675 ISSUES as Registrars to public issues processed over 52 million applications and is servicing over 16 million investors from various locations spread over 205 clients.

10. Loan:

Karvy has recently started this service at selected branches of metro cities. This service has not been started in Saurashtra-Kucch region. Karvy provides loans for following. Vehicle Loan

Home Loan

Personal Loan

MARKETING STRATEGY OF KARVY

Market Positioning:

Market positioning statements of Karvy are At Karvy we give you single window service and We also ensure your comfort.So, Karvy focus on the consumers who prefer almost all investment activities at same place by providing number of various financial services. At Karvy a person can purchase or sell shares, debentures etc. and at the same place also demat it. Karvy also provides other investment option to the same person at same place like Mutual Fund, Insurance, Fixed Deposit, and Bonds etc. and help the person in designing his portfolio. By this way Karvy provides comfort to its customers.

Karvy is also positioned according to Ries and Trout. Karvy is promoted as a no. 1 investment product distributor and R & T agent of India.Target Market:

Karvy uses demographic segmentation strategy and segment people based on their occupation. Karvy uses selective specialization strategy for market targeting. Target person for the Karvy Stock Broking and Karvy Investment Service are persons who can work as sub-broker for the companies. Companies focus on Advisors of Insurance and post office, Tax consultants and CAs for making sub-broker.

Marketing channel System:Karvy uses one level marketing channel for investment product distribution. Sub-brokers work as intermediary between consumer and company. Company has both forward and backward flow of activity through channel. Company distributes stationery, brokerage, and information forward to its sub-broker. The sub-brokers send filled forms, queries, amount of investment etc. back to the company.

Training Channel Members:

Karvy provides training to the sub-brokers because they will be viewed as the company by the investors. The executives of Karvy explain various new schemes of investment to the sub-brokers with its objective, risk factors and expected return. Company also periodically arrange seminar to guide sub-brokers.

Advertising and Promotion:

The objective of advertising of Karvy is to create awareness about services of Karvy among investors and sub-brokers and increase sub-brokers of Karvy.

Company doesnt give advertisement in media like TV, Newspapers, and Magazines etc. Karvys advertisement is made indirectly by the companies associate with it. Karvy is R & T agent of around 700 companies. They publish name, address and logo of Karvy on their annual report.

Karvy also publish its weekly Stock Market Newsletter Karvy Bazaar Baatein and monthly magazine The Finapolis to guide investors and sub-brokers about market.

HR POLICY OF KARVY

Karvys HR Department is located at Hyderabad.

Recruitment and Selection Policy:

The upper level members like zonal managers, regional managers, branch managers and senior executives are recruited by publishing recruitment advertisement in leading national level newspaper. The qualified applicant are then called for interview and selected.

The regional manager has authority to select lower level employee like peon, marketing executives, accountant etc. by approval of zonal manager.Training and Development:

Continuous training and upgrading technical, behavioral and managerial skills is a way of life in Karvy. Karvy encourages employees to hone their skills regularly to enable them to face the challenges of the changing requirements of customers that fit market up and down.

Training needs analysis is done on a regular basis and systematic methodologies are ensured that skills and capabilities of all employees are constantly upgraded to enable them to perform in the challenging work environment.

New employee has given training under experienced employee. The new employee work under experience employee and observe his all activities. When company employs new technology or there is any change in the working of company the training program is arranged. Employee Motivation:Karvys employees are highly empowered. They dont have to report any person of the same branch but they report upper level branch. If particular branch earn certain profit then Karvy gives them special incentives. This also helps in maintaining co-operation between employees. BRANCH LEVEL ORGANIZATION CHARTBranch Manager

Sr. Executive

Executives

Executive (Investment)

(SB - 4)

(IT)

Marketing

Clerk

Executives-3

Executive

(Demat)

Accountant

Peon

Peon[Branch Level Structure of Karvy]Quality Policy Of Karvy:

To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, by combining its human and technological resources, to provide superior quality financial services. In the process, Karvy will strive to exceedCustomers expectations.Quality Objectives of Karvy

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

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

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

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

Use state-of-the art information technology in developing new and innovative financial products 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 ajudicious choice of same.

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

Achievements of Karvy:

Largest mobilizer of funds as per PRIME DATABASE

First ISO - 9002 Certified Registrar in India

A Category- I Merchant banker

A Category- I Registrar to Public Issues

Ranked as "The Most Admired Registrarby MARG

Handled the largest- ever Public Issue - IDBI

Strategic tie-up with Jardine Fleming India Securities Ltd

Handled over 500 Public issues as Registrars

Handling the Reliance Accountwhich accounts for nearly 10 million account holders

First Depository Participant from Andhra Pradesh

SWOT ANALYSIS OF KARVY

Strengths:

Employees are highly empowered.

Strong Communication Network.

Good co-operation between employees.

Number 1 Registrar and Transfer agent in India.

Number 1 dealer of Investment Products in India.

Weaknesses:

High Employee Turnover.

Opportunity:

Growth rate of mutual fund industry is 40 to 50% during last year and it expected that this rate will be maintained in future also.

Marketing at rural and semi-urban areas.Threats:

Increasing number of local players.

Past image of Mutual Fund.

INDUSTRY DETAILSFollowing are list of Mutual Fund companies in India.

Sr. No.Mutual Fund NameNo. of Schemes

1Alliance Mutual Fund36

2Benchmark Mutual Fund5

3Birla Mutual Fund74

4Bank of Baroda Mutual Fund17

5Can Bank Mutual Fund25

6Chola Mutual Fund45

7Deutsche Mutual Fund40

8DSP Merrill Lynch Mutual Fund40

9Escorts Mutual Fund15

10Franklin Templeton Investments130

11GIC Mutual Fund5

12HDFC Mutual Fund79

13HSBC Mutual Fund32

14IL & FS Mutual Fund43

15ING Vysya Mutual Fund 55

16JM Mutual Fund55

17Kotak Mutual Fund56

18LIC Mutual Fund35

19Morgan Stanley Mutual Fund1

20Punjab National Bank Mutual Fund4

21Prudential ICICI Mutual Fund124

22Principal Mutual Fund68

23Reliance Mutual Fund74

24Sahara Mutual Fund12

25State Bank of India Mutual Fund59

26Standard Chartered Mutual Fund 100

27Sundaram Mutual Fund52

28SUN F&C Mutual Fund1

29Tata TD Mutual Fund 100

30Taurus Mutual Fund 9

31Unit Trust of India 42

32UTI Mutual Fund 66

Development of Mutual Funds in India

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

FirstPhase-1964-87Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.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 of India (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 (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 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 mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993.The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996.The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other mutual funds.

Fourth Phase since February 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 of India 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 and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations.The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund 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 the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes. The graph indicates the growth of assets over the years.

[Growth in Assets Under Management]

[Source: www.amfiindia.com]

Mutual Funds OrganisationThere are many entities involved and the diagram below illustrates the organizational set up of a mutual fund:

[Assets Under Management By Fund Type]

[Source: www.amfiindia.com]

[Assets Under Management By AMC]

[Source: www.amfiindia.com]REGULATORY BODIES

Financial System is basically responsible for the major up and downs in the economy. So, there are some regulatory bodies on it which ensures effectiveness in the management of fund of the investors and transparency in the transactions.

Ministry of Finance

SEBI

RBI

Dept. of IT

Stock Brokers

Commercial

PAN

R & T Agent

Banks

TAN

Mutual Fund

NBF Co.

e-TDS

[Regulatory bodies]

COMPETITORS DETAILS

1. Bajaj Capital

It was established in 1964 at Delhi. In 1965 it innovates a new financial instrument Companies Fixed Deposits and becomes the first company to raise Fixed Deposits. The objective of company is to provide professional guidance to investors on where, when and how to invest and to assist the corporate sector in its resource raising activities. Bajaj Capital became the first company to set up Investment Centers all over India for this purpose. Today, Bajaj Capital has 90 offices in over 40 important Indian Cities and has a team of around 500 employees nationwide.Services provided

Merchant banking

Buying and Selling of Money Market Investments Distribution of financial products

Investment Advisory Service

Company fixed deposits Bonds Mutual funds Life insurance General insurance Pension schemes Post office schemes Tax saving schemes Insurance linked investment schemes Initial public offerings Housing loans NRI schemes Car insurance

Financial Planning

Investment planning Retirement planning Insurance planning Children's future planning Tax planning Short-term cash flow planning

2.MCS Ltd.It is established in 1985 in Delhi. It is one of the largest Data Processing House employing more than 600 people.

MCS Ltd. has 8 branches all over India.

Volumes Handled Share registry activities for over 100 corporate servicing over 10 million investors.

Mutual fund operations for 25 funds, servicing over 4.5 million investors.

Billing & settlement plan for Indian operations of IATA Geneva for 1.2 million tickets per annum covering (26 airlines & over 1200 agents). Services Offered: Registrars and Transfer Agents

Registrars to IPOs /Right Issues

Registrars to Open Offers

Registrars to Mutual Funds

Data Processing for Airlines

Print Shop Services MCS is a major player in these activities in the Country with a market share of about 25%. MCS today provides these services to over 140 Corporate and Mutual Funds for a total investor base of 15 million.

3. N.J.India Investments Pvt. Ltd.

NJ India Invest (formerly known as NJ Capital stocks) was started in 1994 to cater to the growing financial services sector. NJ India Invest evolved out as a client focused need based investment advisory firm. NJ regards mutual fund as one of the best investment avenue available to satisfy any kind of investment need. 4. ICICI Securities Ltd.

ICICI Securities Limited (i-SEC) is a wholly owned investment-banking subsidiary of ICICI Limited. ICICI is the only non-Japanese Asian financial institution to be listed on the New York Stock Exchange (NYSE). ICICI Securities was formed on 22nd Feb. 1993, when ICICI's Merchant Banking Division was spun off into a new company; ICICI Securities today is India's leading Investment Bank and one of the most significant players in the Indian capital markets.

ICICI Brokerage Services Limited (IBSL) set up in March 1995, IBSL is a 100% subsidiary of i-SEC. It commenced its securities brokerage activities in February 1996 and is registered with the National Stock Exchange of India Limited and The Stock Exchange, Mumbai.

ICICI has started a website ICICIdirect.com which is the most comprehensive website, which allows you to invest in Shares, Mutual funds, Derivatives (Futures and Options) and other financial products.

ICICI has a large network of branches all over India.Services offered:

Merchant Banking

Demat Service

Stock Broking

5. HDFCHDFC is the leading financial company in India. IT has large network of branches all over India. HDFC Securities which is fully subsidiary of HDFC provides demat service.

HDFC and its subsidiary provides following services.

Demat Service

Life Insurance

Banking Service

Housing Finance

Vehicle Finance

Education Loan

Personal Loan

6. Kotak Securities Ltd.

Kotak Securities needs no introduction as one of the largest stock broking houses in the country and a leading distributor of primary market offerings. Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sachs, the international investment banking and brokerage firm.

Kotak Securities is a corporate member of both the BSE and the NSE. It is also a depository participant with the National Securities Depository Limited (NSDL) for trading and settlement of dematerialized shares.Services offered:

Stock Broking

Financial Product Distribution

Demat Services

Investment Advisory Services

7. Motilal Oswal Securities Ltd.

Motilal Oswal Securities Ltd (MOSt) is one of the leading equity research and broking houses of India. MOSt has a 20-member research team, which is engaged round the clock in analyzing the Indian economy and corporate sectors to identify equity investment ideas. Asia Money Broker's Poll 2002 has rated MOSt as one of the best Indian broking house, for research, for the second time since 2000.

Motilal Oswal is member of NSDL and CDSIL for DP. It has wide network of branches. It has 158 branches all over India.

Services Offered:

Demat Services

Stock Broking

Investment Advisory Service

PRODUCT DETAILS

Mutual funds serve as a link between the saving people and the capital market in that they mobilize saving from investors and bring them to borrowers in the capital markets. In short, it is a common pool of money into which investors place their contribution that is to be invested in accordance with a stated objective.

A mutual fund uses the money collected from the investors to buy those assets, which are specially permitted by its stated investment objective. When an investor subscribes to a mutual fund, he/she buys a part of asset or the pool of funds that are outstanding at that time.

A mutual fund is constituted as an investment company and an investor buys into the fund, means he buys the share of the fund and is known as a unit holder. Since each unit holder is a part of owner of a mutual fund, it is necessary to establish the value of his part. Since the unit held by an investor evidences the ownership of the funds assets, the value of the total asset of the fund when divided by the total number of units issued by the mutual fund gives us the value of one unit. This is called as Net Asset Value (NAV).

STRUCTURE OF INDIAN MUTUAL FUNDS

Mutual fund industry is highly regulated by the government keeping in view of the protection of investors interest as well as to maintain operational transparency.

In India SEBI Regulations Act, 1996, guides the formation and operation of Mutual Funds. A Mutual Fund comprises of 4 separate entities.

1. Sponsor

2. Board of Trusties

3. Asset Management Company

4. Custodian and Depositories

5. Distributors

1. Sponsor:

Sponsor is defined under SEBI regulation as any person who, acting alone or in combination with another body corporate, establishes a mutual fund. The sponsor gets the fund registered with SEBI. The sponsors form a trust and appoint a Board of Trustees.

The sponsor must contribute at least 40% of the net worth of the AMC.

The sponsor must posses a sound financial track record over 5 years prior to registration.

2. Board of Trustees:Mutual funds are managed by Board of Trustees. Trust is created by a document called the Trust Deed that is executed by fund sponsor in favour of trustees.

The trustees appoint the AMC and custodian with the prior approval of SEBI.

They also approve all the schemes floated by the AMC.

They have right to dismiss the AMC, with the approval of SEBI.

Half of the trustees should be independent persons. Neither the AMC, nor its employees can act as trustee.

A trustee can not be appointed as a trustee of two or more mutual funds until and unless he is an independent person or has permission from the Mutual Fund where he is trustee.

Trustees can be removed only by prior approval of SEBI.

3. Asset Management Company:The role of an AMC is to act as the investment manager of the Trust under the Board supervision and direction of the Trustees.

The AMC is required to be approved and registered with SEBI.

The AMC of a Mutual Fund must have a net worth of at least Rs. 10 crore at all time.

The AMC can not act as a trustee of any other Mutual Fund.

They will float schemes only after obtaining the prior approval of the Trustees and SEBI.

The director of AMC should be a person of reputed of high standing and at least have five years experience in relevant field.

AMC can be terminated with 75% unit holders or majority of trustees.

4. Custodian and Depositories:

As per SEBI Regulations Mutual Funds shall have a custodian who is not any way associated with the AMC. It carry outs the activity of safe keeping the securities or participating, in any clearing system. The custodian should be independent from sponsors and AMC and should have a sound track record and adequate relevant experience.

As Indian capital markets are moving away from having physical certificates to ownership of these securities in dematerialized form with Depository. Mutual Funds dematerialized securities are hold by depository participant.

5. Distributors:

For a fund to sell units across a wide retail base of individual investors, an established network of distribution agents is essential. AMCs usually appoint Distributors or Brokers, who sell units on behalf of the fund. A broker usually acts on behalf of several mutual funds simultaneously and may have several sub-brokers under him for the purpose of distribution of units.

MUTUAL FUND A GLOBALLY PROVEN INVESTMENT

Worldwide, the mutual fund has a long and successful history. The popularity of mutual fund has increased manifold. In developed financial market, like US mutual funds have almost overtaken bank deposits and total assets of over US $ 3 trillion.

In India, Mutual Fund industry started with the setting up of UTI in 1964. Public sector banks and financial institution began to establish Mutual Funds in 1987. The private sector and foreign institutions were allowed to set up Mutual Fund in 1993.

WHAT IS MUTUAL FUND?

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. Critical View About Mutual Fund

Advantages:

1. Portfolio Diversification:

Each investor in a fund is a part owner of all the funds assets, thus enabling investor to hold a diversified investment portfolio even with a small amount of investment, which would otherwise require big capital.

2. Professional Management:

Mutual Funds provide the services of experienced and skilled professionals, backed by a dedicated investment research team that analyze the performance and prospect of companies and selects suitable investments to achieve the objectives of the scheme.

3. Diversification:

Mutual Fund invests in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because all stock can not go through a downtrend at the same time and in the same proportion. You achieve this diversification through a mutual fund with powerless money that you can do on your own.

4. Reduction of Transaction Cost:

The investors bear all the cost of investing such as brokerage or custody of securities. When going through the fund investor has the benefit of economies of scale; the funds pay lesser cost because of larger volumes, a benefit passed on to its investors.

5. Liquidity:

By investing in Mutual Funds the investors can cash their investment by selling their units to the fund if open-ended, or selling them in the stock market if the fund is close ended.

6. Convenience & Flexibility:

Mutual Funds Companies offer investor to transfer their holding from one scheme to other.

7. Tax Benefits:

The investors are totally exempt from paying any tax on the income they receive from the Mutual Funds.

Investment up to 10000 in ELSS qualifies for tax rebate of 20%.

8. Regulatory oversight:

Mutual funds are subject to many government regulations that protect investors from fraud.

9. Convenience:

You can usually buy mutual fund shares by mail, phone, or over the Internet.

Limitations:

1. No Control over Costs:

An investor in a mutual fund has no control over the overall cost of investing. He/she has to pay investment management fees as long as he/she remains with the fund. Fees are payable even while the value of the investment may be declining.

2. No Tailor made Portfolios:

Investors who invest on their own can build their own portfolios of shares and bonds and other securities. Investing through fund means he/she delegates this decision to the fund managers.

3. Managing a Portfolio of Funds:

Availability of a large number of funds can actually mean too much choice for the investor. He/she may again need advice on how to select a fund to achieve his/her objectives, quite similar to the situation when he/she has to select individual shares or bonds to invest in.

4. Entry and Exit Cost:

When large bodies like a fund invest in shares, the concentrated buying or selling often result in adverse price movements i.e. at the time of buying, fund has to pay high and vise-versa. But now SEBI has confirmed that no AMC can charge entry load on new mutual fund.

5. No Guarantees:

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

MUTUAL FUND CYCLE

[Mutual Fund Cycle]

[Source: amfiindia.com]

From above cycle, it can be observed clearly that how the money from the investors flow and they get returns out of it. With a very small amount of fund, investors pool their money with fund managers.

After studying the market, the fund manager invests money of the investors in various securities like shares, bonds, debentures, government securities etc. to achieve goal of the investors.

With ups and downs in the market returns are generated and they are passed on to the investors in form of dividend or capital gain or lost. The above cycle is very clear and also very effective.

The fund manager while investing on behalf of investors takes into consideration various factors like time, risk; amount etc. so that he/she can make proper investment decision.

Types of Mutual Fund

[Fig.10: Types of Mutual Funds]

By objective:Investment goals vary from person to person. While somebody wants security, others might give more weightage to returns alone. Somebody else might want to plan for his childs education while somebody might be saving for the proverbial rainy day or even life after retirement. With objectives defying any range, it is obvious that the products required will vary as well. So, Mutual funds can be classified based on the objectives of the investor.

(a).Equity Fund:

Equity funds invest a major portion of their corpus in equity shares issued by companies. NAV of equity funds are fluctuated by fluctuation in price of shares that it holds. So there is a high risk as well as high return in equity fund. Potential to earn in such funds is higher when they are invested for long term.

The leading example of such funds are

Prudential ICICI Growth Plan,

Tata Pure Equity Fund,

Reliance Vision,

Franklin India Prima Fund etc.

(b).Debt Fund:

Debt funds invest in debt instruments debt instruments issued by governments, private companies, banks and financial institutions. By investing in debt, these funds target low risk and stable income investors. These funds are low risk low return funds.

The leading examples are:

Birla Income Plus,

Principal Income Fund,

HDFC Income Fund,

UTI Bond Fund etc.

(c).Balanced Fund:

A balanced fund is one that has a portfolio comprising debt instruments as well as preference and equity shares. The idea is to reduce volatility of funds, while providing some upside for capital appreciation. They are best suitable for the people looking for a combination for capital appreciation and regular income and best time spend for such investment is more than 3 years.

The leading examples are

Prudential ICICI Balanced Fund,

Birla Balance Fund,

Franklin India Balance Fund,

Sundaram Balance Fund etc.

(d).Money Market Fund:

Money market funds invest in securities of a short-term nature, which generally means securities of less than one-year maturity such as Treasury Bills issued by governments, Certificates of deposit issued by banks and Commercial paper issued by companies.

The major strength of money market funds are the liquidity and safety of principal that the investors can normally expect from short term investments.

The leading examples are

Prudential ICICI Liquid Plan,

Templeton India Liquid Fund,

Grindlays Cash Fund etc.

(e).Gilt Fund:

These funds are sort of government funds wherein the investments are made in debt instrument of government, which carry no risk of non payment of interest as the RBI manages the payment of interest and principal on the investments. These funds are best suited for regular income and long term investment objectives.

The leading examples are

Prudential ICICI Gilt Fund,

Tata Gilt Securities Fund,

Templton India Government Securities Fund etc.2. By Duration:

(a).Open-ended Fund:

An open ended fund is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at NAV related prices which are declared daily basis. The key feature of this fund is liquidity.

(b).Close-ended Fund:

A close ended fund has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of initial public issue and thereafter they can buy or sell units on stock exchange where the units are listed at NAV. These mutual fund schemes disclose NAV generally on weekly basis.

(c).Interval Fund:

Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre determined intervals at NAV related prices.

Risk Return GridRisk Tolerance/Return ExpectedFocusSuitable ProductsBenefits offered by MFs

LowDebtBank/ Company FD, Debt based FundsLiquidity, Better Post-Tax returns

MediumPartially Debt, Partially EquityBalanced Funds, Some Diversified Equity Funds and some debt Funds, Mix of shares and Fixed DepositsLiquidity, Better Post-Tax returns, Better Management, Diversification

HighEquityCapital Market, Equity Funds (Diversified as well as Sector)Diversification, Expertise in stock picking, Liquidity, Tax free dividends

[Table11: Risk Return Grid of various MF] 3. By Load:(a).Load Fund:

Marketing of new mutual fund scheme involves initial expenses. These initial expenses may be recovered from the investors by entry or exit load.

But now SEBI has confirmed that AMC can not charge entry load on new mutual fund.

(i).Entry Load or Front-end Load:

If initial expenses recovered from investors at the time of investors entry into the fund, by deducting a specific amount from his initial contribution it is called Entry Load. But now it has been banned by SEBI.

(ii).Exit Load or Back-end Load:

If initial expenses recovered at the time of the investors exit from the scheme, by deducting a specified amount from the redemption proceeds payable to the investor it is called exit load.

(iii).Deferred Load:

The load amount charged to the scheme over a period of time is called a deferred load.

(b).No Load Fund:

Funds that dont charge entry, exit, or deferred load or any other charges for sales expenses are called no load funds.

Now, generally all Mutual Fund companies charge 2 to 2.5% entry load on equity fund.

Generally there is no exit load on equity and sectoral funds to maintain liquidity of that funds.

Generally there is no entry load on gilt scheme and income fund.

There is 0.25 to 1% exit load on gilt and income fund if investors exit from fund before specified time which is generally 3 to 6 months.

Other types of fund:

(a) Tax Saving Funds:

These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act, 1961 as the Government offers tax incentives for investment in specified avenues. E.g. Equity Linked Saving Scheme (ELSS). Pension schemes also offer tax benefits.

The leading examples are

Prudential ICICI Tax Plan,

Templeton India Pension Plan,

Franklin India Taxshield etc.

(b) Index Funds:

Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc. These schemes invest in the securities in the same weightage comprising of an index. NAV of such funds are changed accordance with the change in the index.

The leading examples are

Birla Index Fund,

HDFC Index Fund,

Prudential ICICI Index Fund,

UTI Index Fund etc.

(C) Sector Funds:

These are the funds which invest in the securities of only those sectors or industries as specified in the offer documents. E.g. Pharmaceuticals, Software, Petroleum etc. These types of funds are more risky compared to diversified funds.

The leading examples are

Birla IT Fund,

Pru. ICICI FMCG Fund,

Franklin India Pharma Fund etc.

(d) Commodity Funds:

Commodity funds invest into the different commodities directly or through shares of commodity companies. E.g. Commodity fund invest in gold or shares of gold mines. Commodity funds have not yet developed in India.

(e) Off Shore Funds:

These funds invest in equities in one or more foreign countries there by achieving diversification across the countrys borders. However they also have additional risks such as the foreign exchange rate risk and their performance depends on the economic conditions of the countries they invest in.

RESEARCH OBJECTIVES

Any activity done without an objective in a mind cannot turn fruitful. An objective provides a specific direction to an activity. Objectives may range from very general to very specific, but they should be clear enough to point out with reasonable accuracy what researcher wants to achieve through the study and how it will be helpful to the decision maker in solving the problem.

The objective of any research is basically divided into two categories.

Primary Objective:

To find out market potential of Karvy Investor Service Ltd.

Secondary Objectives:

Following are secondary objectives.

To assess an awareness of mutual funds in Delhi.

To find out how many people are interested in dealing of mutual fund.

CHAPTER 2

LETERATURE REVIEW

REVIEW OF LITERATURE

A number of studies have been conducted from time to time to understand the

different aspects relating to primary market and merchant banking activities in India.

However, most of them have focused upon the primary market in India only. Research

in the area of merchant banking in India and its role in the primary market is very

limited and that too is descriptive in nature and deals with procedural aspects,

organization and management and marketing aspects of merchant bankers. A review

of important studies is presented below:

Verma (2008)1 conducted research on merchant banks in India with the purpose to

analyse their organization structure and management pattern and to assess their

suitability for medium and small size corporate and non corporate enterprises. The

suitability of merchant banking services in reducing investors risk and corporate

capital structure has also been examined. The information was collected from a

sample of 32 merchant bankers through questionnaire and the study covered the

period 2000 to 2005

Shah (2005)3 conducted an empirical study on the data set of 2056 Indian IPOs listed

on the BSE from January 2004 to May 2005 with the objective to examine the under

pricing of IPOs and to establish the empirical regularities about Indias IPO market.

He examined six factors underlying under pricing, namely asymmetric information

between firms and investors, fixing the offer price too early, the interest rate float, loss

of liquidity on the amount paid at issue date (liquidity premium), building loyal

shareholders and merchant bankers rewarding favoured clients as an incentive to

under price.

Qumar (2008)8 analyzed the non fund based financial services by the leading public

sector banks (PSBs) in the field of merchant banking for the period 2001-03 to 2007-

08. According to the author, the public sector banks entered in merchant banking

business on the recommendations of Banking Commission 1972 and dilution of

foreign equity of large number of foreign companies operating in India. He analyzed

the role played by public sector banks in handling the number and amount of issues as

lead manager, co manager, underwriter, adviser, banker to issue and the project

appraiser

CHAPTER 3

RESEARCH METHODLOGY

RESEARCH METHODOLOGY

1. Research Design:

A research design is a pattern or an outline of a research projects working. It is a statement of only the essential elements of a study, those that provide the basic guidelines for the details of the project. It comprises a series of prior decision that taken together provide master plans for executing a research projects.

A research design serves as a bridge between what has been established i.e., the research objectives and what is to be done, in conduct of the study to relish those objectives. If there were no research design, the research would have only foggy notions as about what is to be done.

I have used Exploratory Type. The research is of both qualitative as well as quantitative type.

2.Unit of Analysis:

Middle class, Upper Middle class and HNIs people.

Characteristics of interest:

Peoples knowledge about Mutual Fund

Peoples knowledge about Karvy

Peoples interest in getting knowledge of Mutual Fund

Peoples willingness to deal in Mutual Fund with Karvy

3. Sources of Data:

a. Primary Source:

The primary data is collected using sampling method and by survey using questionnaire.b. Secondary Source:

Secondary data includes information regarding present market scenario, Information regarding Mutual Funds and competitors are collected by Internet, Magazines and News papers and books.

4.Sample Planning:

Sample Size: 50 units

Sample Extent: Delhi

Sampling Design:

A Sample Design is a definite plan for obtaining a sample from a given population. It refers to the technique or method the researcher would adopt in selecting items for the sample.

I have used both Convenience Sampling Method.

5. Data Collection Method:

I have used Survey Method to collect data. I have collected data using questionnaire.

Questionnaire Plan

I have used Structured Questionnaire for gathering the required data through contacting respondent personally.

Type of Information:

I have collected Fact, Awareness, Attitude, Future action plan and reason using questionnaire.

Type of Questions:

Close-ended questions of Dichotomous and Multiple Choice type are asked in the questionnaire for data collection.

6.Data Analysis & Interpretation:

Data Analysis is based on the data collected by way of Questionnaires. From the collected data findings are extracted. The data is tabulated and frequency distribution chart is prepared.

CHAPTER 4

ANALYSIS & INTERPRETATION

RESEARCH ANALYSIS AND INTERPRETATION

1. What is the investment preference of the people?

Inference : Graph shows that 30% of people are investing in mutual fund. That mean it is a good opportunity for the company as they can grap the rest unaware people to being them investor in mutual fund by making them aware about mutual fund. 2. What is the reason for investing money in mutual funds? Inference : Graph shows that 50% (above among all) people

are interested in investing in mutual fund. That mean company

can increase investors for investing in mutual fund by giving

them equity based mutual fund.

3. What is the frequency of investment in mutual funds?

Inference: Graph shows that 40% people are investing in mutual fund once a month. So company suggests people about SIP and company suggest rest of the people about the benefits of SIP.4. How much is the awareness about scheme offered for Mutual Fund?

Inference: Graph shows that 66% of people have few knowledge about

mutual fund and 10 % of people do not know about mutual fund. That

means company can make fully aware about mutual fund to people and

tell them benefit associated with mutual fund so that they will invest in

Mutual fund.

5. How many are aware of tax advantage by Mutual Fund?

Inference: Graph shows that 38 % of people dont know about tax

benefit associated with mutual fund and 34 % of people are not sure

about tax benefit through mutual fund. This is the good opportunity

for company to increase investors of mutual fund by making aware

them tax benefit associated with mutual fund in such schemes like ELSS.6. Who are the external advisors to people for investment in mutual fund?

Inference: Graph shows that 38 % of people invest in mutual fund

on the suggestion of their friends. So they are potential investors for

the company. Company can take care of these investors by suggest

them to invest on professional advisory.

7. What are the types of Mutual Funds in which people invest?

Inference: Graph shows that most of the people (58 %)

invest in equity based mutual funds. They are risk taker.

Company can take care of these investors by suggesting

them balanced and debts funds.

8. Why they are not investing in mutual funds?

Inference: Graph shows that 48% of people are not investing in

Mutual fund because of bitter past experience. 14% have not knowledge about mutual funds. 22 % do not believe on this service.

6 % are not able to select the best scheme for them.Company assumes

that these investors have lack of advisory. So company should suggest them for investing on basis of professional advisor.

9. How many people are interested in knowing more about mutual fund?

Inference: Graph shows that 86 % of people are interested to know

more about mutual funds. This is the great opportunity for the

company to increase the investors by making them aware about

mutual funds and telling them benefits associated with mutual funds.

CHAPTER 5

CONCLUSION & LIMITATION

CONCLUSION

Our exhaustive research in the field of Mutual Fund threw up some interesting trends which can be seen in the above analysis. A general impression that we gathered during data collection was the immense awareness and knowledge among people about various companies and their mutual fund schemes. People are beginning to look beyond SBI for their mutual fund needs and are willing to trust private players with their hard earned money.

People in general have been impression by the marketing and advertising campaigns of mutual fund companies. A high penetration of print, radio and television ad campaigns over the years is beginning to have its impact now.

It is an undisputed fact that the stock market is unpredictable and yet enjoys a high success rate as a wealth management and wealth accumulation option. The difference between unpredictability and a safety anchor in the market is provided by in-depth knowledge of market functioning and changing trends, planning with foresight and choosing one options with care. This is what KARVY provide in our Stock Broking services.

KARVY offer services that are beyond just a medium for buying and selling stocks and shares. Instead we provide services which are multi-dimensional and multi-focused in their scope. There are several advantages in utilizing our Stock Broking services, which are the reasons why it is one of the best in the country.

LIMITATIONS

Due to limitation of time and cost constrains a sample size of only 50 respondents are chosen.

Data Analysis and interpretation done may not be that strong due to small sample and Convenience Sampling Method.

The sample extent for research is only Delhi.

Some of the respondents may be biased in giving responses.

My inexperience in research area might have affected results.

CHAPTER 6

BIBLIOGRAPHY

BIBLIOGRAPHY

REFERANCE BOOKS:

A. D.C.Anjaria & Dhaivat Anjaria,Association of Mutual Funds In India, AMFI Workbook, Mutual Fund Scenario, page no-233,234, Second Edition, Sultan Chand & Sons, Delhi, 2003.B. Sundaram & Varshney, Banking, Theory Law and Practice; Concept and Types of Mutual Fund, page no -3.45,3.46,3.52,3.53, Fifth Edition,Sultan Chand & sons; New Delhi, 2004.

C. Varshney & Malhotra, Principles of Banking, Risk Associated with Mutual Fund, page no- 256,257,258,259, Third Edition, Sultan Chand & Sons, Mumbai, 2005.

D. Beri, G.C., Marketing Research, Sources and Types of Data, page no-v Eighth Edition, Tata McGraw Hill, New Delhi 2010.

WEBSITES:

1) http://en.wikipedia.org/wiki/Mutual_fund2) https://www.karvymfs.com/karvy/

3) http://www.thefinapolis.com/v2/Mutualfunds/Mutualfunds.aspQuestionnaire

1. Which are the investment tools you invest in?

[ ] Bank Fixed Deposit

[ ] RBI Bonds

[ ] Mutual Funds

[ ] Equities

[ ] others (Please specify)

2. You primarily invest for (Rank according to your preference)[ ] Returns[ ] Liquidity[ ] Savings

[ ] Tax Benefits

3. Rank the investments options according to you preference of

Investment.

[ ] Bank Fixed Deposit[ ] RBI Bonds[ ] Mutual Funds[ ] Equities

[ ] Any other (Please specify)

4. What is the frequency of your investments?

[ ] Once a Month

[ ] Once in 6 Months

[ ] Once a Year

5. Do you invest in Mutual Funds?

[ ] Yes

[ ] No

6. If the answer to question 8 is "Yes"

a.)Are you aware of the various schemes offered by Mutual Funds?[ ] Yes

[ ] No

[ ] Few

b.)Do you know that you can get Tax Advantages by investing in Mutual Funds?

[ ] Yes

[ ] No

[] Not Sure

c.)On whose external advice do you invest?

[ ] Bank

[ ] Distributor

[ ] Agents

[ ] Direct investments

[ ] C.A.

d.)Which types of Mutual Fund do you invest in?[ ] Debt

[ ] Equities

[ ] Balanced

7.If the answer to question 8 is "No"

You do not invest in Mutual Fund because of (you may give multiple answers)

[ ] Bitter past experience

[ ] Lack of Knowledge

[ ] Lack of confidence in service being provided

[ ] Difficulty in selection of schemes[ ] In-efficient investment advisors

8. If Mutual Fund offer you Steady Returns, Tax Benefits, Liquidity, Diversification of Portfolio, Lesser Risk would consider it as an investment option in the future for you?[ ] Yes

[ ] No

[ ] May be

9. Would you be interested to know more about Mutual Funds?

[ ] Yes[ ] No

EMBED Excel.Chart.8 \s

68

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25

4564

47000

121805

79464

121778

154018

East

Years

Rs. In Crores

Sheet1

Mar-65Mar-87Mar-93Jan-03Mar-03Sep-03May-04

East2545644700012180579464121778154018

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0.42

0.14

0.03

0.36

0.04

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Fund Type

Sheet1

IncomeGrowthBalancedMoney MarketGiltELSS

42%14%3%36%4%1%

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0.38

0.21

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