mutual fund awareness-hdfc

8/12/2019 Mutual Fund Awareness-HDFC

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CONTENT

Sl.No. DESCRIPTION PAGE NO.

CHAPTER I INTRODUCTION 2-24

CHPATER II COMPANY PROFILE 25-47

CHPATER III CASE STUDY 48-52

CHAPTER IV ANALYSIS 53-72

CHAPTER V FINDINGS SUGGESTIONS 73-75

CHAPTER VI

CHAPTER-VII

!UESTIONNAIRE

"I"ILOGRAPHY

7#-7$

8%-8&

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CHAPTER-&

INTODUCTION TO

MUTUAL FUNDS

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I'()o*+,(o'

Mutual funds are for everyone. Around the world, millions of investor invests in mutual

funds because of their safety, ease of investing and the many advantages they offer. It is very

necessary before investing that you know some basics of investing which are given below. It is

best option for those investors who dont have time to manage their fund.

I'/01(0'(1 '* o+

Investment is never an easy process. owever, a sound understanding of some basic

concepts make the process of investment decision!making much easier and the e"perience

much more en#oyable. $he following step can help you get started on your path to becoming a

successful investor%

&. I*0'( o+) '',l '00*1 '* 6ol1%

$he first step is to get a clear understanding of your own financial needs and goals. Ask

yourself the &uestion '(hen do I need money and for what purpose) *ist down your financial

goals and when they will materialise +daughters higher education after years, purchase of a

house after 1- years, and how much money you will need for the same. $he answer will help

you arrive at the time frame for your investment ' short term, medium term or long term.

F'',l Gol1 Ao+'( )0+)0* Y0)1 (o ,90/0 I'/01(0'( 9o):o'

/


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( (o*1 ;),0 o+) 6ol

R0()00'(

D+69(0)1 9690)

E*+,(o'

"+'6 ,)

So'1 ,o;+(0)

,o+)10

R1. 25 L


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e of return depends on your financial goals and the time you have to achieve them. $ake an

e"ample that your retirement goal at 45 years is 6s. 2- *akhs and your monthly savings is 6s.

4---, your re&uired rate of return depending on your current age would be%

P)010'( A60 R0(+)'1

43 0)1

48 0)1

$.5 =

2&.2=

As you can see, the later you start, the higher will be your re&uired rate of return7 hence as your

investment hori8on 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! 6s 95--, almost twice the original savings re&uired to achieve your

target accumulation.

$hese three steps give a very basic idea about how to invest, when an investor is seeking

investment in different financial tools. $hough there are different steps of investment in each

financial tool, these acts as blue print for them too.

$he following diagram e"plains the working of Mutual :und

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MUTUAL FUND OPERATION CHART


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M+(+l F+'*1 '* Yo+

>9( 1 +(+l +'*?

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

seek the same general investment ob#ective and invests them in a number of different types of

financial claims +e.g. e&uity shares, bonds, money market instrument. $hese pooled funds

provide thousands of investors with proportional ownership of diversified managed by

professional investment managers.

>90)0 *o +(+l +'*1 '/01(?

0roadly, mutual funds invest basically in three types of asset classes%

S(o,


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E/ol+(o' o M+(+l F+'* ' I'*%

$he mutual fund industry in India started in 19/ with the formation of


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199/. $he 199/ ;E0I +Mutual :und 6egulations were substituted by a more comprehensive

and revised Mutual :und 6egulations in 199. $he industry now functions under the ;E0I

+Mutual :und 6egulations 199

$he 199/ ;E0I +Mutual :und 6egulations were substituted by a more comprehensive

and revised Mutual :und 6egulations in 199. $he industry now functions under the ;E0I

+Mutual :und 6egulations 199

Fo+)(9 P910 S',0 2%%3

In :ebruary 2--/, following the repeal of the


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E&uity fund invest in shares of common stocks.

:i"ed income funds invest in government or corporate securities which offer fi"ed rate

of returns.

0alanced fund invest in a combination of both stocks and bonds.

AGGRESSIVE GRO>TH FUNDS-

$hese funds seek to provide ma"imum growth of capital with secondary emphasis on

dividend or interest income. $hey invest in common stocks with a high potential for rapid

growth and capital appreciation.

Aggressive growth funds are suitable for those investors who can afford to assume the

risk of potential loss in value of their investment in the hope of achieving substantial and rapid

gains. $hey are not suitable for investors who must conserve their principal or who must

ma"imi8e their current income.

GRO>TH FUNDS-

*ike aggressive growth funds, growth fund generally invests in stocks for growth rather

than income. $hey are considered more conservative in their approach because they usuallyinvest in established companies to achieve long!term growth. ?rowth fund provides low

current income but the investor principal is more stable then it would be in an aggressive

growth fund. (hile the growth potential may be less over the short term, many growth funds

have superior long!term performance records.

$hese funds are suitable for growth oriented investors but not investors who are unable to

assume risk or who are dependent on ma"imi8ing current income from there investments.

GRO>TH AND INCOME FUNDS-

?rowth and income funds seek long!term growth of capital as well as current income.

$he investments strategies use to reach these goals vary among funds.

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?rowth and income funds have low to moderate stability of principal and moderate

potential for current income and growth. $hey are suitable for investors who can assume some

risk to achieve growth of capital but want to maintain a moderate level of current income.

FIED INCOME FUNDS-

$he goal of fi"ed income fund is to provide high current income consistent with the

level of capital. ?rowth of capital is of secondary importance.

:i"ed income funds offer a higher level of current income than money market funds, but

a lower stability of principal. :i"ed income funds are suitable for investors who want to

ma"imi8e current income and who can assume a degree of capital risk in order to do so.

E!UITY FUNDS-

:unds that invest in stocks represent the largest category of mutual fund. ?enerally the

investment ob#ective of this class of fund is long!term capital growth with some income. $here

are however many type of e&uity funds.

"ALANCED FUNDS%!

$he 0alanced funds aims to provide both growth and income. $hese funds invest in both

shares and fi"ed income securities in the proportion indicated in their offer documents. It is an

idea for investors who are looking for the combinations of income and moderate growth.

MONEY MARET FUNDS LI!UID FUNDS-

:or the cautious investors these funds provide a very high stability of principal while

seeking a moderate to high current income. $hey invest in highly li&uid7 virtually risk free,

short!term debt securities of agencies of the Indian government, banks and corporation and

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treasury bills. 0ecause of their short!term investments, money market mutual funds are able to

keep a virtually constant unit price7 only the yield fluctuates.

Money market funds are suitable for those investors who want high stability of principal and

current income with immediate li&uidity.

SPECIALITY SECTOR FUNDS-

$hese funds invest in securities of a specific industry or sector of the economy such as

health care, technology, leisure, utilities or precious metals. $he funds enable investor to

diversify holding among many companies within an industry, a more conservative approach

than investing directly in one particular company.

;ector funds offer a opportunity for sharp capital gains in cases where the funds industry

is Fin favorG but also entail the risk of capital losses when the industry is out of favor. (hile

sectors funds restrict holdings to a particular industry, other specialty funds such as inde" funds

gives investors a broadly diversified portfolio and attempt to mirror the performance of various

market averages.

OPEN ENDED SCHEMES-

pen!ended schemes do not have a fi"ed maturity period. Investors can buy or sell units

at CAH! related prices from and to the mutual fund on any business day. $hese schemes have

unlimited capitali8ation, open!ended schemes do not have a fi"ed maturity, there is no cap on

the amount you can buy from the fund and the unit capital keep growing. $hese funds are not

generally listed on any e"change.

pen!ended schemes are preferred for their li&uidity. ;uch funds can issue and redeem

units any time during the life of schemes. ence unit capital of open!ended funds can fluctuate

on a daily basis. $he advantages of open ended schemes are% !

1. Any time e"it option

2. Any time enter option.

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CLOSE ENDED SCHEMES-

>lose!ended schemes have fi"ed maturity periods. Investors can buy into these funds

during the period when these funds are open in the initial issue. After that such scheme cannot

issue new units e"cept in case of bonus or right issue. owever after the initial issue you can

buy or sell units of the schemes on the stock e"change where they are listed. $he market price

of the unit could vary from the CAH of the schemes due to demand and supply factor

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HO> LONG TO EEP INVESTMENT TO GET MAIMUM RETURNS

$echnically open!ended funds you can withdraw your investments even within a week,

but to get desired returns positive time frame is re&uired are%

F+'*1 T0 P0)o*

E+( F+'*1 3 Y0)1 @;l+1B

"l',0* F+'*1 &8 o'(91 (o 3 Y0)1

MIP1 & Y0) @;l+1B

I',o0 F+'*1 # o'(91 (o & Y0)

L+* F+'*1 0 *1 (o # o'(91

>HAT RETURNS CAN I EPECT IF I EEP MY MONEY FOR SUGGESTED TIME

FRAMES

F+'*1 R0(+)'1

S0,(o) +'*1 22= (o 25= ;.

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"l',0 +'*1 &5= (o &8= ;.

MIP1 P0'1o' Pl'1 &2= (o &5= ;.

I',o0 F+'*1 &%= (o &2= ;.

L+* F+'*1 7= (o $= ;.

$he above!mentioned returns in the table are indicative and not assured. All investments

in M


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$he above ?raph shows the 6isk and 6eturns generated by different :unds. *i&uid :unds are

less 6isky and also generate less 6eturns where as ;ector :unds are more 6isky but generate

more 6eturns by the e"ample of above two :unds it is clear that 6isk and 6eturns are directly

proportional to each other. ther :unds like E&uity :unds, 0alanced :unds and Income :unds

are also gives the same percentage of 6eturns as the 6isk involved.

ADVANTAGE OF MUTUAL FUND-

$he advantages of investing in a Mutual :und are%

D/0)1,(o' $he best mutual funds design their portfolios so individual

investments will react differently to the same economic conditions. :or e"ample,

economic conditions like a rise in interest rates may cause certain securities in a

diversified portfolio to decrease in value. ther securities in the portfolio will respond

to the same economic conditions by increasing in value. (hen a portfolio is balanced in

this way, the value of the overall portfolio should gradually increase over time, even if

some securities lose value.

P)o011o'l M'600'( Most mutual funds pay topflight professionals to manage

their investments. $hese managers decide what securities the fund will buy and sell.

R06+l(o) o/0)169( Mutual funds are sub#ect to many government regulations that

protect investors from fraud.

L+*( Its easy to get your money out of a mutual fund. (rite a check, make a call,

and youve got the cash.

Co'/0'0',0 ou can usually buy mutual fund shares by mail, phone, or over the

Internet.

Lo ,o1( Mutual fund e"penses are often no more than 1.4 percent of your

investment. E"penses for Inde" :unds are less than that, because inde" funds are not

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actively managed. Instead, they automatically buy stock in companies that are listed on

a specific inde".

T)'1;)0', Mutual :und schemes are said to be $ransparent because they show

the clear allocation of :unds to Investors.

Fl0l( Mutual funds are fle"ible because they change time to time and also if an

Investor wants his money back before the maturity of the :und eJshe can easily

redeem it.

DRA>"ACS OF MUTUAL FUNDS-

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

No G+)'(001

Co 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. owever, anyone who invests through a mutual fund runs the risk of losing

money.

F001 '* ,o11o'1

All funds charge administrative fees to cover their day!to!day e"penses. ;ome funds also

charge sales commissions or KloadsK to compensate brokers, financial consultants, or

financial planners. Even if you dont use a broker or other financial adviser, you will pay a

sales commission if you buy shares in a *oad :und.

T01

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uring a typical year, most actively managed mutual funds sell anywhere from 2- to @-

percent of the securities in their portfolios. If your fund makes a profit on its sales, you will

pay ta"es on the income you receive, even if you reinvest the money you made.

M'600'( )1


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country. It has certain defined ob#ectives, which #u"taposes the guidelines of its 0oard of

irectors. $he ob#ectives are as follows%

$his mutual fund association of India maintains high professional and ethical standards

in 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 related

people engaged in the activities of mutual fund and asset management. $he agencies

that are by any means connected or involved. In the field of capital markets and

financial services also involved in this code of conduct of the association.

AM:I interacts with ;E0I and works according to ;E0Is guidelines in the mutual fund

Industry.

Association of Mutual :und in India do represent the ?overnment of India, the 6eserve

0ank of India and other related bodies on matters relating to the Mutual :und Industry.

It develops a team of well &ualified and trained Agent distributors. It implements a

program of training and certification for all intermediaries and other engaged in the

mutual fund industry.

AM:I undertakes all India awareness programmed for investors in order to promote

proper understanding of the concepts and working of mutual funds.

At last but not the least association of mutual fund of India also disseminate

informations on Mutual :und Industry and undertakes studies and research either

directly or in association with other bodies.

R06+l(o) A1;0,(1

S,9001 o +(+l +'*1%!

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$he Asset management company shall launch no schemes unless the trustees approve

such scheme and a copy of the offer has been filed with the 0oard.

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

$he offer document shall contain disclosures which are ade&uate in order to enable theinvestors to make informed investment decision including the disclosure non ma"imum

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. F


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I'/01(0'( o0,(/01 '* /l+(o' ;ol,01-

$he price at which the units may be subscribed or sold the price at which such unit may at any

time be repurchased by the mutual fund shall be made available to the investors.

G0'0)l Ol6(o'-

Every asset management company for each scheme shall keep and maintain proper

book of accounts, records and document, for each scheme so as to e"plain its

transaction 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 intimate

to the board the place where such books of accounts, records and documents are

maintained.

$he financial year for all the scheme shall end as of March /1 of each year. Everymutual fund or the asset management company shall prepare in respect of each

financial year an annual report and annual statement of accounts of the schemes and the

fund as specified in Eleventh ;chedule.

Every mutual fund shall have the annual statement of accounts audited by an auditor

who is not in any way associated with the auditor of the asset management comp

P)o,0*+)0 o) A,(o' I' C10 O D0+l(-

n and from the date of the suspension of the certificate or the approval, as the case may

be, the mutual fund, trustees or asset management company, during the period of suspension

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and shall be sub#ect to the direction of the 0oard with regard to any records, documents, or

securities that may be in its custody or control relating to its activities as mutual funds, trustees

or the asset management company.

R01(),(o'1 o' I'/01(0'(1

A mutual fund scheme shall not invest more than 14L of its CAH in debt instrument

issued by a single issuer, which are rated not below investment grade by a credit rating

agency authori8e to carry out such activity under the act. ;uch investment limit may be

e"tended to 2-L of the CAH of the scheme with the prior approval of the 0oard of

$rustees and the 0oard of Asset Management >ompany.

A mutual fund ;cheme shall not invest more than 1-L of its CAH in unrated debt

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

not e"ceed 24L of the CAH of the 0oard of $rustees and the 0oard of Asset

management.

Co mutual funds under all its schemes should own more than 1-L of any companys

paid up capital carrying voting rights.

;uch transfers are done at the prevailing market price for &uoted instrument on spot

basis.

$he securities so transferred shall be in conformity with the investment ob#ectives of

the scheme to which such transfer has been made.

A scheme may invest in another scheme under the same asset management company or

any other mutual fund without charging any fees, provided that aggregated intercourse

inter scheme investment made by all schemes under the same management or in

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schemes under the management of any other asset management company shall not

e"ceed 4L of the net asset value of the mutual fund.

$he initial issue e"penses in respect of any scheme may not e"ceed L of the funds 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, deliver

the 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 0adla 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.

=ending deployment of funds of a scheme a mutual fund can invest the funds of the

scheme in short term deposits of scheduled commercial banks.

Co mutual fund scheme shall make any investment in7

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 group

company of the sponsor.

$he listed securities of group companies of the sponsor which is in e"cess of/-L of the net assets +of all the schemes of a mutual fund

Co mutual fund scheme shall invest more than 1-4 of its CAH in the e&uity

shares or e&uity related instrument of any company. =rovided that, the limit of

2/


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1- percent shall not be applicable for investments in inde" fund or sector or

industry specific schemes.

A Mutual fund scheme shall not invest more than 4L of its CAH in the e&uity

shares or e&uity related investments in case of open!ended schemes and 1- L of

its CAH in case of close ended schemes.

So0 ,(1 o) (90 6)o(9 o +(+l +'*1 ' I'*%!

1--L growth in the last years.

Cumber of foreign AM>s is in the &ueue to enter the Indian markets like :idelity

Investments, class cities are growing rapidly. $oday most of the mutual funds are

concentrating on the A class cities. ;oon they will find scope in the growing cities.

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

limited products.

;E0I allowing the M:s to launch commodity mutual funds.

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CHAPTER-2

COMPANY PROFILE

H1(o) o (90 I'*' M+(+l F+'* I'*+1()

$he mutual fund industry in India started in 19/ with the formation of


26/80

attract the small investors and introduce them to market investments. ;ince then, the history of

mutual funds in India can be broadly divided into four distinct phases.

F)1( P910 &$#4-87

and ?eneral Insurance >orporation of

India +?I>. ;0I Mutual :und was the first non!


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Mutual :und +Cov 59, 0ank of India +Bun 9-, 0ank of 0aroda Mutual :und +ct 92. *I>

established its mutual fund in Bune 1959 while ?I> had set up its mutual fund in ecember

199-. At the end of 199/, the mutual fund industry had assets under management of 6s.3@,--3

crores. :rom 195@to 1992!9/, the fund industry e"panded nearly seven times in terms of

Assets under Management, as seen in the following figures%

Fo) (90 ;0)o* o &$$2-$3 Tl0 No 2 S0,o'*) D(

Ao+'( Mol:0*

@R1.C)o)01B

A110(1 U'*0) M'600'(

@ R1.C)o)01B

UTI 11,-4@ /5,23@

P+l, S0,(o) 1,93 5,@4@

To(l &3%2& 47%%4

T9)* P910 &$$3-2%%3 @E'() o P)/(0 S0,(o) F+'*1B%

(ith the entry of private sector funds in 199/, a new era started in the Indian mutual fund

industry, giving the Indian investors a wider choice of fund families. Also, 199/ was the

year in which the first Mutual :und 6egulations came into being, under which all mutual

funds, e"cept


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Fo+)(9 P910 1',0 F0)+) 2%%3

In :ebruary 2--/, following the repeal of the


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U'( 9ol*'6 ;((0)' o +(+l +'*1 '*+1() 1 o' M),9 3& 2%%3

;E0I has done an analysis of the unit holding pattern of mutual funds industry as on March /1,

2--/. $he details are given below% !

A] Mutual Funds Industry Unit holding Pattern

:rom the data collected from the mutual funds, the following has been observed%!

i As on March /1, 2--/ there are a total number of 1. crore investors accounts +it is

likely that there may be more than one folio of an investor which might have been

counted more than once and actual number of investors would be less holding units of

6s. @9,-1 crore. ut of this total number of investors accounts, 1.4 crore areindividual investors accounts, accounting for [email protected] of the total number of investors

accounts and contribute 6s./2,91 crore which is 31.-@L of the total net assets.

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ii >orporate and institutions who form only 2.-3L of the total number of investors

accounts in the mutual funds industry, contribute a si8eable amount of 6s.34,3@- crore

which is [email protected] of the total net assets in the mutual funds industry.

iii $he C6IsJ>0s and :IIs constitute a very small percentage of investors accounts

+-.43L and contribute 6s.133-.15crore +1.51L of net assets.

T90 *0(l1 o +'( 9ol*'6 ;((0)' )0 6/0' ' (90 ollo'6 (l0

Tl0 No 3 S0,o'*) D(

UNIT HOLDING PATTERN OF MUTUAL FUNDS INDUSTRY

CategoryNo. O

I'/01(o)1 AC

= To To(l

I'/01(o)1 AC

[email protected])o)0B =To To(l

NAV

I'*/*+l1 14,44@,4- [email protected] /2,91.12 31.-@

NRI1OC"1 53,/11 -.4/ [email protected] 1.1-

FII1 2,-45 -.-1 41.@ -.@1

Co);o)(0

I'1((+(o'1O(90

)1 /23,9@9 2.-3 34,39.4/ [email protected]

TOTAL &5$#8854 &%%.%% 7$#%%.83 &%%.%%

"J U'( 9ol*'6 P((0)' P)/(0P+l, S0,(o) M+(+l F+'*1%

:rom the analysis of data on unit holding pattern of =rivate ;ector Mutual :unds and =ublic

;ector Mutual :unds, the following observations are made%!

/-


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&. ut of a total of 1. crore investors accounts in the mutual funds industry, +it is likely that

there may be more than one folio of an investor which might have been counted more than

once and therefore actual number of investors may be less 32.9/ lakh investors accounts

i.e. 2@L of the total investors accounts are in private sector mutual funds whereas the 1.1@

crore investors accounts ie.@/L are with the public sector mutual funds which includes


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Tl0 No 5 S0,o'*) D(

UNIT HOLDING PATTERN OF PU"LIC SECTOR MFS @INCLUDING UTI MF B

CategoryNO. O

I'/01(o)1 AC

= To To(l

I'/01(o)1 AC

[email protected])

o)0B

=To To(l

NAV

I'*/*+l1 11,444,4 95.9@ 13@/3.3 3.2@

NRI1OC"1 34594 -./9 144.39 -.5

FII1 @31 -.-1 //.1 -.13

Co);o)(0

I'1((+(o'1

O(90)1 @3--@ -./ 5--/.2 /3.91

TOTAL %8 &%%.%% 22$2#.$& &%%.%%

RECENT TRENDS IN MUTUAL FUND INDUSTRY

$he most important trend in the mutual fund industry is the aggressive e"pansion of the

foreign owned mutual fund companies and the decline of the companies floated by nationali8ed

banks and smaller private sector players.

Many nationali8ed banks got into the mutual fund business in the early nineties and got

off to a good start due to the stock market boom prevailing then. $hese banks did not really

understand the mutual fund business and they #ust viewed it as another kind of banking

activity. :ew hired speciali8ed staff and generally chose to transfer staff from the parent

organi8ations.

$he performance of most of the schemes floated by these funds was not good. ;ome

schemes had offered guaranteed returns and their parent organi8ations had to bail out these

AM>s by paying large amounts of money as the difference between the guaranteed and actual

returns.

/2


33/80

$he service levels were also very bad. Most of these AM>s have not been able to

retain staff, float new schemes etc. and it is doubtful whether, barring a few e"ceptions, they

have serious plans of continuing the activity in a ma#or way.

$he e"perience of some of the AM>s floated by private sector Indian companies was

also very similar. $hey &uickly reali8ed that the AM> business is a business, which makes

money in the long term and re&uires deep!pocketed support in the intermediate years. ;ome

have sold out to foreign owned companies, some have merged with others and there is general

restructuring going on.

$he foreign owned companies have deep pockets and have come in here with the

e"pectation of a long haul. $hey can be credited with introducing many new practices such as

new product innovation, sharp improvement in service standards and disclosure, usage of

technology, broker education and support etc. In fact, they have forced the industry to upgrade

itself and service levels of organi8ations like


34/80

COMPANY PROFILE

HDFC A110( M'600'( Co;' L(0* @AMCB

:> Asset Management >ompany *td +AM> was incorporated under the >ompanies Act,

194, on ecember 1-, 1999, and was approved to act as an Asset Management >ompany for

the :> Mutual :und by ;E0I vide its letter dated Buly /, 2---.

$he registered office of the AM> is situated at 6amon ouse, /rd :loor, .$. =arekh Marg,

19, 0ackbay 6eclamation, >hurchgate, Mumbai ! 3-- -2-.

In terms of the Investment Management Agreement, the $rustee has appointed the :>

Asset Management >ompany *imited to manage the Mutual :und. $he paid up capital of the

AM> is 6s. 24.19 crore.

$he present e&uity shareholding pattern of the AM> is as follows %

=articulars L of the paid up e&uity capital

ousing evelopment :inance >orporation *imited 49.95;tandard *ife Investments *imited /9.99ther ;hareholders +shares issued on e"ercise of ;tock ptions -.-/

Nurich Insurance >ompany +NI>, the ;ponsor of Nurich India Mutual :und, following a

review of its overall strategy, had decided to divest its Asset Management business in India.

$he AM> had entered into an agreement with NI> to ac&uire the said business, sub#ect to

necessary regulatory approvals.

n obtaining the regulatory approvals, the following ;chemes of Nurich India Mutual :und

have migrated to :> Mutual :und on Bune 19, 2--/. $hese ;chemes have been renamed as

follows%

:ormer Came Cew Came

/3


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Nurich India E&uity :und :> E&uity :undNurich India =rudence :und :> =rudence :undNurich India >apital 0uilder :und :> >apital 0uilder :undNurich India $a";aver :und :> $a";aver Nurich India $op 2-- :und :> $op 2-- :und

Nurich India igh Interest :und :> igh Interest :undNurich India *i&uidity :und :> >ash Management :undNurich India ;overeign ?ilt :und :> ;overeign ?ilt :undO

O:> ;overeign ?ilt :und has been wound up in March 2--

$he AM> is also providing portfolio management J advisory services and such activities are

not in conflict with the activities of the Mutual :und. $he AM> has renewed its registration

from ;E0I vide 6egistration Co. ! =M J IC=------4- dated ecember 21, 2--9 to act as a

=ortfolio Manager under the ;E0I +=ortfolio Managers 6egulations, 199/. $he >ertificate of

6egistration is valid from Banuary 1, 2-1- to ecember /1, 2-12.

:> Asset Management >ompany *imited +AM>

:> Asset Management >ompany *td +AM> was incorporated under the >ompanies Act,

194, on ecember 1-, 1999, and was approved to act as an Asset Management >ompany for

the :> Mutual :und by ;E0I vide its letter dated Buly /, 2---.

$he registered office of the AM> is situated at 6amon ouse, /rd :loor, .$. =arekh Marg,

19, 0ackbay 6eclamation, >hurchgate, Mumbai ! 3-- -2-.

In terms of the Investment Management Agreement, the $rustee has appointed the :>

Asset Management >ompany *imited to manage the Mutual :und. $he paid up capital of the

AM> is 6s. 24.19 crore.

T90 "o)* o D)0,(o)1 o (90 HDFC A110( M'600'( Co;' L(0* @AMCB

,o'11(1 o (90 ollo'6 0'0'( ;0)1o'1.

M). D00;< S. P)0


36/80

M). N. 0(9 S *td. in his capacity as its >hairman.

Mr. =arekh #oined :> *td. in a senior management position in 19@5. e was inducted as a

whole!time director of :> *td. in 1954, appointed as the Managing irector of :> *td.

+designated as >hairman in 199/ and continued to be appointed as such from time to time.

e retired as the Managing irector +designated as >hairman with effect from the close of

business hours on ecember /1, 2--9. Mr. =arekh was appointed as an Additional irector of

:> *td. with effect from Banuary 1, 2-1-. $he shareholders of :> *td. at the //rd

Annual ?eneral Meeting held on (ednesday, Buly 13, 2-1-, appointed Mr. eepak ;. =arekh

as a irector liable to retire by rotation.

is other irectorships as on March /1, 2-12 are as follows%

>ompanyE"ide Industries *imited Alternate irector?la"o;mithDline =harmaceuticals *imited >hairman:> E6? ?eneral Insurance >ompany *imited >hairman

/
http://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#N.KeithSkeochhttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#KekiM.Mistryhttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#JamesAirdhttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#P.M.Thampihttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#HumayunDhanrajgirhttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#DeepakB.Phatakhttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#HoshangS.Billimoriahttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#RajeshwarRajBajaajhttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#VijayMerchanthttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#VijayMerchanthttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#RenuS.Karnadhttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#MilindBarvehttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#N.KeithSkeochhttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#KekiM.Mistryhttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#JamesAirdhttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#P.M.Thampihttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#HumayunDhanrajgirhttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#DeepakB.Phatakhttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#HoshangS.Billimoriahttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#RajeshwarRajBajaajhttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#VijayMerchanthttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#RenuS.Karnadhttp://www.hdfcfund.com/AboutUs/ContentDisplay.aspx?ReportID=6FB6DAE8-3AEB-42C4-9C99-2455176C5F62#MilindBarve


37/80

:> ;tandard *ife Insurance >ompany *imited >hairmanInfrastructure evelopment :inance >ompany *imited >hairmanMahindra P Mahindra *imited irector;iemens *imited >hairman$he Indian otels >ompany *imited irector

Nodiac >lothing >ompany *imited Alternate irector(C; ?lobal ;ervices =vt. *td. irector = (orld *imited irector ?I> ;pecial Investments =te *td. irector

Mr. =arekh is a :ellow of the Institute of >hartered Accountants +England P (ales.

Mr. C. Deith ;keoch

Mr. C. Deith ;keoch is an associate director on the 0oard. Mr. C. Deith ;keoch is associated

with ;tandard *ife Investments *imited as its >hief E"ecutive and is responsible for all

company business and investment operations within ;tandard *ife Investments *imited.

Mr. ;keoch #oined ;tandard *ife Investments *imited as >hief Investment fficer from Bames

>apel P >o +now ;0> ;ecurities, where he was employed from 195- to 1999. :rom his

first role at Bames >apel as an International Economist, he went on to become the ;enior hief Economist two years later. In 199/, he was appointed irector of

Economics and ;trategy and was given the responsibilities of Managing irector, International

E&uities in 1995. Mr. ;keoch has held a number key industry appointments and

responsibilities. In March 2-12 he was appointed as a non!e"ecutive director to the 0oard of

the :inancial 6eporting >ouncil, the ouncil for the Institutional Investor >ommittee, a

body which represents Institutional investors. Mr ;keoch is also a board member of the

Investment Management Association. In Aug 2-1- he stepped down as >hairman of A0IInvestment >ommittee having completed three years in office. Immediately prior to this Mr.

;keoch contributed to the industry through a number of channels including M $reasury

(holesale Markets :orum in the year 2--9, irector Association of 0ritish Insurers, irector

Investment Management Association, >hairman IMA Asset Management >ommittee and the

>hancellors (orking ?roup on 6ights Issues in the year 2--@, and :;A ;enior =ractitioner

/@


38/80

=anel in the year 2--.

Mr. ;keoch graduated in Economics +0A ons from *td. Mr. Mistry has been employed with :> *td.

since 1951. e was appointed as the e"ecutive director of :> *td. in 199/, as the deputy

managing director in 1999 and as the managing director in 2---. e was re!designated as the

Hice >hairman and Managing irector of :> *td. in ctober 2--@. e was re!designated

as the Hice >hairman P >hief E"ecutive fficer with effect from Banuary 1, 2-1-. e has

been re!appointed as the Managing irector +designated as Hice >hairman P >hief E"ecutive

fficer of :> *td. for a period of 4 years, with effect from Covember 1/, 2-1-.


>ompany0ombay ;tock E"change *td irector ?reatship +India *imited irector?6hairman?6IA Investments, Mauritius irector :> E6? ?eneral Insurance >ompany *imited irector:> ;tandard *ife Insurance >ompany *imited irectorIndia Halue :und Advisors =vt. *td. irectorInfrastructure *easing P :inancial ;ervices *imited irectorCe"t ?en =ublishing *imited irector;hrenu# P >ompany *imited irector ;un =harmaceutical Industries *imited irector$he ?reat Eastern ;hipping >ompany *imited irector$orrent =ower *imited irector =(> India Advisory 0oard Member :> 0ank *td irector

/5


39/80

e is a :ellow of the Institute of >hartered Accountants of India.

Mr. Bames AirdMr. Bames Aird is an associate director on the 0oard. Mr. Bames Aird is associated with

;tandard *ife Investments *imited as ead of ;trategic evelopment and is responsible for

development of its new international business.

Mr. Aird #oined ;tandard *ife in 199@ as an Investment Manager for the >orporate =ooled and

;egregated :und businesses. e was appointed Investment irector, ead of ;egregated :unds

in April 1995 and took up the current position in Covember 1999. =reviously Mr. Aird worked

for ;cottish E&uitable, #oining as an Investment Analyst in 1951 before moving on to :und

Manager in 1953. Mr. Aird also managed both +Mauritius oldings *imited irector;tandard *ife +Mauritius oldings 2-- *imited irector;elect =roperty oldings + Mauritius *imited irector;tandard *ife Investments +?eneral =artner ?A6; *imited irector

Mr. Aird graduated in Economics from Edinburgh hairman and

Managing irector of 0A;: India *imited from Banuary 195 to March 2---. =rior to this, he

was with I>I India *imited from 194@ to 1954. is last position held at I>I India *imited was

/9


40/80

as >hief E"ecutive, :ertili8er ivision.


>ompany0rigade Enterprises *imited irector=ioneer 0alloon India =rivate *imited irector ;trides Acrolab *td. irector

Mr. $hampi is a ?raduate in ;cience, =ost ?raduate iploma in >hem. Engineering, :.I.

>hem. E. +. Eng. +hairman. :rom 193 to 199 Mr. hanra#gir was associated with 0urmah ;hell India in

;enior positions. Earlier, Mr. hanra#gir was a =rocess esign Engineer with 0ritish "ygen

>ompany, *ondon from 19-!19/.


>ompany

>adila ealthcare *imited irectorEmcure =harmaceuticals *imited irector . hanra#gir Estates =rivate *imited irectorCe"t ?en =ublishing *imited irectorCeuland *aboratories *imited irector;ami *abs *imited irector$hemis Medicare *imited irectorNydus (ellness *td. irector

3-


41/80


42/80

Mr. 6a#eshwar 6a# 0a#aa#Mr. 6a#eshwar 6a# 0a#aa# is a ?raduate in ;cience and is an independent director on the

0oard. e is the >hairman of *erch 0ates =rivate *imited, a ;pecialised >onsulting >ompany

for Hertical $ransportation. Mr. 0a#aa# was the >hairman of the 0oard of irectors and

Managing irector of tis Elevators India. e also held the position of Hice =resident, ;outh

and ;outheast Asia based in ;ingapore wherein the tis country heads from India, ;ingapore,

$hailand, Malaysia, Indonesia, =hilippines and Hietnam reported to him. In May 2--1, Mr.

0a#aa# #oined ;pecial lympics Inc. as Managing irector, Asia =acific, a non!profit

organi8ation created by the Boseph = Dennedy Br. :oundation, (ashington for the benefit of

people with mental retardation.


>ompany?la"o;mithDline =harmaceuticals *imited irector *erch 0ates =rivate *imited irector0ombay ?ymkhana *td =resident

Mr. 0a#aa# is a ?raduate in ;cience and *aw.

Mr. Hi#ay MerchantMr. Hi#ay Merchant is an independent irector on the 0oard. Mr. Merchant is a partner of

ynam =lastics since 195@. e is responsible for overall management and control of the firm

for past 2- years. e was the :ormer =resident of $he All India =lastic Manufacturing

Association for / terms, :ounder of Indian >entre for =lastics in Environment +non!profit

body also Envis Code of Ministry of Environment P :orests ?overnment of India. e has

also served on national bodies of Indian Institute of =ackaging +Ministry of >ommerce, Indian

Merchants >hamber, Enviroplast =lastindia :oundation, =le"concil, Indian =lastics Institute,

etc. and was the onorary Editor of Industry Bournal =lastics Cews for 1- years.


>ompany;uraiya 0rothers =rivate *imited irector

Mr. Merchant is a graduate in >ommerce and has also done =ost ?raduate =rogramme from

32


43/80

IIM Ahmedabad.

Ms. 6enu ;. Darnad

Ms. 6enu ;. Darnad is an associate director on the 0oard. Ms. 6enu ;ud Darnad is associated

with :> *td. in her capacity as its Managing irector. ;he has been employed with :>

*td. since 19@5 and was appointed as the e"ecutive director of :> *td. in 2--- and was re!

designated as the Boint Managing irector of :> *td. in ctober 2--@. ;he has been

appointed as the Managing irector of :> *td. for a period of 4 years, with effect from

Banuary 1, 2-1-.

er other irectorships as on March /1, 2-12 are as follows%

>ompany0osch *imited irector>redit Information 0ureau +India *imited irector?6 0ank *imited >hairperson:> ;tandard *ife Insurance >ompany *imited irector :> E6? ?eneral Insurance >ompany *imited irector

:> =roperty Hentures *imited >hairperson:> ;ales =rivate *imited >hairpersonIndraprastha Medical >orporation *imited irectorADN Cobel India *imited >hairperson?3; >orporate ;ervices +India =vt. *imited irector :eedback Infrastructure ;ervices =rivate *imited irector$6AC; ' >hicago irector Halue P 0udget ousing >orporation +India =vt *td irector:> =*> Maldives irector>redila :inancial ;ervices =rivate *td >hairperson:> Education and evelopment ;ervices =vt. *td >hairperson

EI *td irector *afarge India =vt *td irector

Ms. Darnad is the >hairperson of Audit >ommittee of >redit Information 0ureau +India

*imited and I>I India *imited, a member of Audit >ommittee of 0osch *imited and :>

E6? ?eneral Insurance >ompany *imited and a member of Investors ?rievance >ommittee

of 0osch *imited.

3/


44/80

;he is a graduate in law from the

*td. for 13 years.

Mr. 0arve was responsible for the management of :>s $reasury portfolio and for raising

funds from :inancial Institutions and >apital Markets. e was also head of marketing for retail

deposit products and responsible for investment advisory relationships for >ommonwealth

E&uity :und Mutual :und and Invesco India ?rowth :und.


>ompanyAssociation of Mutual :unds in India +AM:I >hairman:> Asset Management >ompany +;ingapore =te. *imited irector

Mr. 0arve is a ?raduate in >ommerce and an Associate Member of the Institute of >hartered

Accountants of India.

:> Mutual :und is one of the largest mutual funds and well!established fund house in the

country with consistent fund performance across categories since its incorporation on

ecember 1-, 1999. (hile our past e"perience does make us a veteran, but when it comes to

investments, we have never believed that the e"perience is enough.

O+) I'/01(0'( P9lo1o;9

$he single most important factor that drives :> Mutual :und is its belief to give the

investor the chance to profitably invest in the financial market, without constantly worrying

about the market swings. $o reali8e this belief, :> Mutual :und has set up the

infrastructure re&uired to conduct all the fundamental research and back it up with effective

analysis. ur strong emphasis on managing and controlling portfolio risk avoids chasing the

latest KfadsK and trends.

33


45/80

(e believe, that, by giving the investor long!term benefits, we have to constantly review the

markets for new trends, to identify new growth sectors and share this knowledge with our

investors in the form of product offerings. (e have come up with various products across asset

and risk categories to enable investors to invest in line with their investment ob#ectives and risk

taking capacity. 0esides, we also offer =ortfolio Management ;ervices.

;E0I has directed Mutual :unds JAM> vide ;E0I >ircular no. >I6JIMJ:J21J2-12 dated

;eptember 1/, 2-12 to provide a separate plan for direct investments, i.e. investments not

routed through a distributor, in e"isting as well as new schemes. ence :> Mutual :und

has launched separate plans under e"isting open!ended schemes for direct investments called

Kirect =lanK with effect from Banuary 1, 2-1/.

$he Kirect =lansK were launched with effect from Banuary 1, 2-1/.

Investments under the irect =lan are open to all categories of investors who choose to invest

without routing the transaction via a distributor.

All =lans J ptions J ;ub!ptions offered currently under KE"isting =lansK of the ;chemes are

also available for subscription under the Kirect =lanK. $hus, there shall be 2 plans available

for subscription under the schemes vi8. E"isting =lan and irect =lan.

34


46/80

CHAPTER-3

CASE STUDY

3


47/80

PRO"LEM STATEMENT-

ue to the falling 6ate of Interest on 0ank deposits, it is obvious that Investment in

Mutual :und will grow in year to come. owever lack of Awareness of Mutual :und is a

hindering factor in e"pected growth of Mutual :und 0usiness.


48/80

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

O"KECTIVE OF STUDY-

In view of the problem cited above, the study aims at analy8ing the following ma#or

issues%

$o know the awareness of M


49/80

RESEARCH METHODOLOGY

6esearch has its special significance in solving various operational and planning problem of

business and industry. 6esearch methodology is a way to systematically analy8e the research

problem.

ASSUMPTIONS

1. It has been assumed that sample of hundred represents the whole population

2. $he information given by the customer is unbiased

LITERATURE SURVEY

$he pro#ect is based on pure findings of facts

D0/0lo;0'( o >o)


50/80

COLLECTION OF DATA

$his research is solely based on primary research done by means of &uestionnaires

targeted to respondents who primarily belong to the business and service sector. $he sample

si8e is 1--.

a. ;ampling Methods% A sample is the representative of the populations which will predict

the behaviors of the whole universe

b. $he sampling si8e put under 2 categories% =robability ;ampling and Con =robability

;ampling.

EECUTION OF PROKECT

It is very essential in the research process to know the accuracy of the findings which depends

on how systematically the study has been carried out so that it can make sense.

(e have e"ecuted the pro#ect after prior discussion with our guide and structured in the

following steps%

a. =reparation of a &uestionnaire

b. $he focal point of the designing the &uestionnaire was to comprehend the current

investment scenario

c. $his &uestionnaire was primarily aimed to respondents who belong to the service and

business class people

d. $he &uestionnaires were discussed through personal interface with the respondents

LIMITATIONS OF STREAMLINING RESULTS

Every work has its own limitations. *imitations are e"tent to which the process should not

e"ceed. $he following limitations for the pro#ect are%

1. uration of pro#ect was not enough to make our conclusion on such a vast sub#ect.

$ime constraints has also become a ma#or limitation

2. $he sample si8e taken for drawing the conclusion was not si8eable

/. Investor ignorance was faced during discussions with respondents

4-


51/80

41


52/80

CHAPTER-4

ANALYSIS

42


53/80

!&. Do o+ '/01( )06+l)l?

YES 8$

NO &&

TOTAL &%%

=ortfolio of Mr. ;EDA6 >AC.

E;0'101 I',o0

T(l0

A''+l

A(. Mo'(9l A''+l A(. Mo'(9l

A''+l

I',. 35---- 3--

ouse *oan ---- 4---

O(90) E;0'101 -

Beewan mitra+ouble cover ---- 4---

Beewan mitra+$riple cover 1---- 5//

Money back 24--- 2-5/

Misllenious E"penses 194-- 1/--

To(l E;0'101 35%#%% 2$2&7 To(l I',. 48%%%% 4%%

;urpus money

(ant a regular income after 15 years of 6s.

14-- p.mAge of Mr. Mano# is 32yrs.

D0;0'*0'(1

1(ife P 1 ;on P 1 aughter

Sol+(o'

N0( >o)(9@To(l I',o0- To(l E;0'101B 1293--

S+);l+1 Mo'0

To(l o'0 (o I'/01(@A''+l &2$4%%

To(l o'0 (o I'/01(@Mo'(9lB &%783

A110(1 Allo,(o'

= (o

I'/01(

Mo'(9l

@S/'6B Monthly Annual+saving Annual

Mutual :unds /4L 1-@5/ /@@3 1293-- 342

;tock Market 24L 1-@5/ 29 1293-- /2/

Insurance 24L 1-@5/ 29 1293-- /2/

>ontingency :und 14L 1-@5/ 11@ 1293-- 193

To(l &%%= &%783 &2$4

4/


54/80

Percentage of people making any

investment

89%

11%

YES

NO

I( 91 00' o10)/0* (9( ;;)o(0l $%= o (90 ,o))01;o'*0'(1 '/01( ' 1o0 o) (90

o(90) '',l '1()+0'(. T9o+69 (90 ;0),0'(60 o ,9o,0 o '/01(0'( /) *+0

(o *0)0'( ,(o)1 1+,9 1 60 0*+,(o' )1< 0(,.

!2. Do o+ '/01( +1'6-

. S,0'(, Tool1 . " I'(+(o'

43


55/80

S,0'(, Tool1 47

" I'(+(o' 53

To(l &%%

Methods of investment

47%

53%

scientific tools

by intution

I( 91 00' o10)/0* (9( (90)0 1 'o o) *0)0',0 0(00' (90 ;0),0'(60 o ;0o;l0

9o '/01( +1'6 1,0'(, (ool1 '* (9o10 9o10 9o 0l0/0 ' (90) '(+(o' +( ( 1

100' (9( (90 o+'60) 60'0)(o' 1 o)0 l0''6 (o)*1 +160 o 1,0'(, (ool1 (9'

(90) ;00)1.

!3. >9( )0 o+ ;)00))0* '/01(0'( ;)o)(01?

. I'1+)',0

44


56/80

A o) ,9+'< 9o 9/0 00' '(0)/00* ( 91 00' o10)/0* (9( lo1( 8%= 9/0

1o0


57/80

10,(o) +'*0)(


58/80

,. "o'*1 D00'(+)01

YES 34

NO ##

TOTAL &%%

I( 91 00' o10)/0* (9( o'l 34= (90 9/0 '/01(0* ' "o'*1 '* D00'(+)01 AS

,o;)0* (o (9o10 9o 9/0 'o(. T91 0 *+0 (o l011


59/80

*. E+(01 S9)0 M)


60/80

0. PPF

YES 43

NO 57

TOTAL &%%

O+( o (90 (o(l ;0o;l0 1


61/80

. NSC

YES 45

NO 55

TOTAL &%%

O+( o ll (90 ;0o;l0 +01(o'0* 45= 1* YES '* 55= 1* NO. P0o;l0 9o 9/0 1*

(9( YES o) ;0),0'(60 )0 0(90) +1'011 ' o) o)


62/80

6. Po1( O,0 S/'61

YES 3&

NO #$

TOTAL &%%

O+( o (90 (o(l ,o))01;o'*0'( o'l 3&= (90 '/01( ' ;o1( o,0 1/'61. T91 ,o+l* 0

*+0 (o ll'6 '(0)01( )(0 '* 0((0) )0(+)' o(90) (ool1.

2

Post ffice "avings

31%

69%

YES

NO


63/80

9. R0l E1((0

YES 42

NO 58

TOTAL &%%

T90 ,o))01;o'*0'( 9o 1* YES )0 42= '* 9o 1* NO 1 58= +( (91 ll ,9'60

1 ;0o;l0 )0 o)0 ,oo)(l0 ' )0l 01((0 '* (9 ll'6 '(0)01( )(0 ;0o;l0 () (o

'* '0 /0'+0 o '/01(0'(1.

/

(eal &state

42%

58%

YES

NO


64/80

. Gol*

YES 4&

NO 5$

TOTAL &%%

O+( o (90 (o(l ,o))01;o'*0'( +01(o'0* 4&= 1 (90 ;)00) (o '/01( ' 6ol* 9l0

5$= 1 (90 *o'(.

3


65/80

. O(90)1

O ll (90 ,o))01;o'*0'(1 1


66/80

!4. >9( ;0),0'(60 o o+) ',o0 *o o+ '/01(?

"0lo &%= 3%

&%=-3%= 57

3%=-5%= &%

Ao/0 5%= 3

Ao+( #%= o ;0o;l0 1* (9( (90 '/01( 0(00' &%=-#%= o (90) (o(l ',o0 '

1o0 o) o(90) (;01 o '',l (ool1. A o) ,9+'< o ;0o;l0 0lo'6'6 (o (91 1060'(

)0 )o IT 10,(o) 9o )0 o+'6 l)60 *1;o1l0 ',o0 '* 9/0 l((l0


67/80

!5. A)0 o+ )0 o+( +(+l +'*1?

YES 88

NO &2

TOTAL &%%

O'l &2= o ,o))01;o'*0'( 1* (90 *o'(


68/80

!#. >9( 1 o+) ;0),0;(o' o+( +(+l +'*1?

SAFE &5=

RISY 25=

OTHERS #%=

TOTAL &%%=

T90 ;0),0'(60 o ;0)1o' 9o 1 (9( +(+l +'* 1 10 1 5= (9o10 9o 1 ( 1

)1


69/80

YES 4&

NO 5$

TOTAL &%%

O+( o (90 (o(l ,o))01;o'*0'(1 1


70/80

YES 3#

NO #4

TOTAL &%%

O+( o (o(l ,o))01;o'*1 o'l 3#= 1* (9( (90


71/80

!$. Ho o+ ,9oo10 +(+l +'*?

"RAND NAME 35

HIGH NAV 2#

HIGH RETURNS &5

ADVERTISING &2

OTHERS &2

TOTAL &%%

I( 91 00' o10)/0* (9( )'* '0 *o01 ((0) 90' ;0o;l0 )0 ,9oo1'6 +(+l

+'* 1 35= 1* )'* '0. T90 '0( 1 NAV ( o+( 2#=. T9010 (o ,(o)1 ;l

o) )ol0 *+)'6 10l0,(o' o +(+l +'*1.

@1

Choosing of m%t%al f%nd

0

5

10

15

20

25

30

35

40

Bran Na!e "i#h N$ "i#h Ret&rns $'ertisin# Others


72/80

CHAPTER-5

PROKECT FINDINGS ANDRECOMMENDATIONS

PROKECT FINDINGS

@2


73/80

$here is great opportunity for Mutual :und 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 do

so, also these people want to take less risk .

(ith 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 as

compared to e&uity market.

oung 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 risk

taking capability too.

$he 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 ma#or part as it has been seen that people buy mutual fund

looking at the brand name.

SUGGESTIONS

@/


74/80

India is passing through a tremendous growth phase with an average growth rate of @!

5L per annum. (ith this growth phase there is growth in each and every sector, hence

there is rush to by shares and e&uities. It is also a very good time for mutual fund

companies but it is advisable for them and their brokers that they dont #ust sell mutual

funds but sell the right kind of scheme which is comfortable to a person nature of

taking risk and need,

$here is a general ignorance and &uestions about, what are mutual funds) (hat are

different schemes of mutual funds) ow to invest in a mutual) And many more. $his

thing should be handled by mutual fund companies and their brokers to provide

knowledge to their clients.

It has been seen that there is a ma#or increase in the percentage of young investors who

have large amount of disposable income with them and want to invest, these type of

prospective clients should be tapped at an early stage.

;mall towns, villages are still untapped and can also acts as a business area of very

huge potential.

Cow even co!operative society can invest up to 1-L of their capital in mutual funds

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

@3


75/80

CHAPTER-#

!UESTIONNAIRE

!+01(o'')0

@4


76/80

&. A)0 o+ )06+l) '/01(o)?

a. es b. Co

2. Do o+ '/01( +1'6

a. ;cientific $ools b. 0y Intuition

3. >9( )0 o+) ;)00))0* '/01(0'( ;)o)(01?

N0 o I'/01(0'(

I'1+)',0"'


77/80

#. >9( 1 o+) ;0),0;(o' o+( M+(+l F+'*1?

a. ;afe

b. 6isky

c. thers

7. H/0 o+ '/01(0* ' 1o0 M+(+l F+'*1?

a. es b. Co

8. Do o+


78/80

4. PROFESSION

5. ANNUAL INCOME

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OOOOOOOOOOOOOOOOOOOOOOOOO$hank youOOOOOOOOOOOOOOOOOOOOOOOOOOOO

@5


79/80

"I"ILOGRAPHY

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@9


80/80

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"OOS

MUTUAL FUND

PRODUCT AND SERVICES---- TAMAN

AMFI COURSE "OO

INDIAN MUTUAL FUNDS HAND"OO--

SUNDER SANARAN
http://www.njindiainvest.com/http://www.amfiindia.com/http://www.njindiainvest.com/http://www.amfiindia.com/

mutual fund awareness-hdfc

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