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1. A. WHAT ARE MUTUAL FUNDS?

Pooled Vehicle
A mutual fund (MF) is a vehicle to pool money from investors, with a promise that professional managers who are expected to honor the promise would invest the money in a particular manner.

Mutual funds in India are governed by the regulations of Securities and Exchange Board of India (SEBI).

Professional Management
The idea behind a MF is that investors lack the time or the inclination or the skills to manage their own investments. Professional managers, acting on behalf of the MF, manage the investments for the benefit of investors, in return for a management fee.

The organization that manages the investment is the Asset Management Company (AMC). Employees of the AMC who perform this role of managing investments are the Fund Managers.

Schemes
Investors have their individual preferences on how they would like their money invested and how much risk they are willing to take. Professional managers can choose to manage each individual investors money as per the investors preferences. Such personal treatment, often referred to as

Portfolio Management Scheme (PMS) in India, entails significant demands on the time of the managers. PMS is therefore economically feasible only for investment mutual fundss above a particular value. The breakeven asset size, which depends on the cost structure of the manager, is rarely below Rs 10,00,000. 1

It is possible to balance the time and cost required to manage investments by grouping investors together based on their preferences. In this manner, the focus of the investment activity can be shifted from a single investor (in the case of PMS) to a group of investors having similar expectations (in the case of a MF).

For ease of management and reporting, such a group of investors is identified with a mutual fund scheme. In commercial terminology, the investors have invested in a scheme and the professional managers manage the scheme. A MF can, and typically does, have several schemes to cater to different investor preferences.

Money in Trust
The MF manages investments of the scheme for the benefit of its investors. Every scheme has an: investmentmutual funds (Portfolio Statement); account of income and expenditure (Revenue Account); and Account of assets and liabilities (Balance Sheet).

In order to ensure fairness to investors, the expenditure that can be charged to the scheme, whether as management fees or as other expenses, is regulated by SEBI.

The gains of any scheme (after accounting for income, permitted expenses, profits and losses from the investment activity) would belong to its investors. Similarly losses, if any, would need to be borne by its investors, upto the amount invested. Thus, the MF manages the moneys in trust for the benefit of investors

Legal framework
Across the world, the MF sector is viewed as a critical mechanism to channel funds of investors into the capital market. Since these investors are often not so well qualified to

invest, the mutual fund business is highly regulated. Regulations vary from country to country. But broadly they provide for : checks and balances in the legal structure; pre-qualifications to start a MF;, permissible schemes and investments; control over marketing process; level of operational flexibility to the professional investors; Valuation of securities etc.

The flow chart below describes broadly the working of a mutual fund:

NEED OF THE STUDY


This study is an attempt in the direction of analyzing mutual funds. Since mutual funds play a very important role in achieving the investment objective, for this reason I have selected this topic in ATS. In this report I have analyzed the various mutual fund schemes and the perception of investors towards the schemes of mutual funds and investors satisfaction level towards mutual funds performance.

SCOPE OF THE STUDY


1. This is confined to Hyderabad City but it can be extended to other city in near feature. 2. Further their researchers outcome is useful for the company, it takes the necessary steps for maintaining and improving the ATS Pvt. Ltd. in Hyderabad City 3. This Study gives about the Investors attitude towards mutual funds of various mutual funds schemes. 4. The survey is centered on the investors for he purpose of Investors relation on mutual funds schemes 5. The study helps the company to understand the effective ways of risk & returns of various schemes

OBJECTIVES OF THE STUDY


1. To know the various types of mutual funds Fund schemes used by the Investors. 2. To study the perceptions of Investors on schemes of Mutual Funds. 3. To find out which media is more effective in creating the Mutual Funds awareness 4. To study the Mutual funds are most worthy than the other banking schemes 5. To study Investors satisfaction on the Mutual Funds performance. 6. To study the Mutual funds worthiness. 7. To study about the mutual funds analysis of various mutual funds schemes .

RESEARCH METHODOLOGY
A research design is a specification of methods, procedure for acquiring information needed. It is overall pattern or frame work of the project that stipulates what information is to be collected from which sources and by what procedures. Research is a systematic and intensive study directed towards a more complete knowledge of the subject studied

PRIMARY DATA
Data collected directly from the account certain ratios are computed and certain has also been prepared to perform the economic , industry and company analysis. the economic indicators are Gross domestic product, Inflation, Industries and Agriculture

SECONDARY DATA
Journals Internet Company websites Text books

LIMITATIONS OF THE STUDY


1. 2. The field work is limited only to Hyderabad Findings and suggestions also restricted to certain extent and they are not applicable to test as the respondents might have given a biased response. 3. The sample size is limited to mutual funds schemes, therefore any generalizations would be significant only to that extent. 4. The study was conducted with in short span of time 6-8 weeks. The findings and the data based on this information are to be 5. The inference made from the study may considerably differ from universal characteristics.

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 history of mutual funds in India can be broadly divided into four distinct phases:

FIRST PHASE 1964-87


Unit 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 the following. 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 mutual fund (June 1989) 7

GIC mutual fund (December 1990.) At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004 crores.

THIRD PHASE 1993-2006 (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 2006, there were 33 mutual funds with total assets of Rs. 1, 21,805 cores. 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 2006


In February 2006, 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 2006, 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 2007, there were 29 funds, which manage assets of Rs.153108 Crores under 421 scheme.

ORGANIZATION OF MUTUAL FUNDS Investors


Every investor, given her financial position and personal disposition, has a certain inclination to take risk (risk profile / risk appetite). The hypothesis is that by taking an incremental risk (of losing capital, wholly or partly), it would be possible for the investor to earn an incremental return. But assuming risk without regularly monitoring it is foolhardy. Therefore, it would be prudent for investors who take a risk to be able to manage this risk. MF is a solution for investors who lack the time, the inclination or the skills to actively manage their investment risk in individual securities. They can delegate this role to the MF, while retaining the right and the obligation to monitor their investments in the scheme (which, in turn, invests in individual securities). In the absence of a MF option, the moneys of such passive investors would lie either in bank deposits or other safe investment options, thus depriving the investors of the possibility of earning a better return.

Investing through a MF would make economic sense for an investor if her investment, over the medium to long term, fetches a return (net of all costs and expenses) that is higher than what she would otherwise have earned by investing directly. 9

Because the goal of investing is to accumulate real wealth an enhanced ability to pay for goods and services the ultimate focus of the long-term investor must be on real, not nominal, returns. The following categories of investors are eligible to invest in Indian mutual funds: Resident Indian adult individuals, either singly or jointly (not exceeding three); Parents / lawful guardians on behalf of minors; Companies, corporate bodies registered in India; Registered societies and co-operative societies authorized to invest in such Units; Religious and charitable trusts under the provisions of 11(5) of the Income Tax Act,

1961 read with Rule 17C of the Income Tax Rules, 1962; Trustees of private trusts authorized to invest in mutual fund schemes under their trust

deeds; Partners of partnership firms; Association of persons or body of individuals, whether incorporated or not; Hindu Undivided Families (HUFs), in the sole name of the Karta; Banks (including co-operative banks and regional rural banks) and financial

institutions and investment institutions; Non-resident Indians / Persons of Indian origin resident abroad (NRIs) on full

repatriation or non-repatriation basis; Overseas corporate bodies (OCBs), firms and societies which are held directly or

indirectly but ultimately to the extent of at least 60% by NRIs and trusts in which at least 60% of the beneficial interest is similarly held irrevocably by such persons, on full repatriation basis (subject to RBI approval); Other mutual funds registered with SEBI; Foreign institutional investors (FIIs) registered with SEBI; International multilateral agencies approved by the Government of India. Army / Navy / Airforce, para-military units and other eligible institutions; Scientific and industrial research organisations

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Trustees
Trustees are the people within a mutual fund organization, who are responsible for ensuring that investors interests are properly taken care of. In return for their services, they are paid trustee fees, which is normally charged to the scheme.

Asset Management Company (AMC)


AMCs manage the investment mutual fundss of schemes. An AMCs income comes from the management fees it charges to the schemes. The management fee is calculated as a percentage of net assets managed. Some countries provide for performance based management fees as well. In order to earn the management fee, any AMC has to employ people and bear all the establishment costs that are related to its activity, such as for premises, furniture, computers and other assets, software development, communication costs etc. These are to be met out of the management fee earned. Expenses such as on trustee fees, marketing etc. can be directly borne by the mutual fund scheme. However, in some cases, competition in the marketplace could force an AMC to bear some of these costs, which would otherwise have been borne by investors in the schemes. So long as the income through management fees more than covers its expenses, an AMC is economically viable. Given the nature of the activity, a certain minimum establishment and infrastructure is necessary for an AMCs functioning. Since costs cannot be reduced below a base level, AMCs need to have a reasonable corpus of assets under management (AUM), below which it may not be viable. The breakeven level of AUM is a function of cost structure of the AMC and distribution of assets between schemes (debt schemes and index schemes generally yield a lower management fee). As a thumb-rule, in the Indian context it is difficult for an AMC to breakeven if its AUM is below Rs 2,000crore.

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Distributors
Distributors earn a commission for bringing investors into the schemes of a MF. This commission is an expense for the scheme, although there are occasions when an AMC chooses to bear the cost, wholly or partly. Depending on the financial and physical resources at their disposal, the distributors could be: Tier 1 distributors (having an owned or franchised network reaching out to investors

all across the country); or Tier 2 distributors (regional players with some reach within their region); or Tier 3 distributors (marginal players).

It is paradoxical that distributors earn a commission from the AMC, but are expected to safeguard the financial health of investors from whom they do not earn a fee. It is almost like a doctor earning a commission from the pharmaceutical company, but expected to safeguard the physical health of the patient who does not pay him anything. In recognition of the anomaly in the distribution structure, a body of financial planners is expected to emerge in the Indian financial market. They will safeguard investors interest in return for a fee from the investor.

Registrars
The investors holding in schemes is typically tracked by the schemes Registrar and Transfer agent (R&T). Some AMCs prefer to handle this role inhouse. The registrar / AMC maintains an account of the investors investments in and dis-investment from the scheme. Requests to invest more money into a scheme, or to recover moneys against existing investments in the scheme are processed by the R&T. Since the database of investors is maintained by the R&T, internet based transactions of existing investors in the schemes of an AMC are effected through the R&Ts database servers.

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Records of unitholders determine the schemes unit capital (discussion follows), which is a significant component of the liability side of any MF scheme.

Custodian / Depository
The custodian maintains custody of the securities in which the scheme invests (as distinct from the registrar who tracks the investment by investors in the scheme). This ensures an ongoing independent record of the investments of the scheme. The custodian also

follows up on various corporate actions, such as rights, bonus and dividends declared by investee companies. In a situation where securities are increasingly being dematerialised, the role of the depository for such independent record of investments is growing. In the recent securities market scam, a large investor parted with some of its funds without gaining custody of the securities where they were supposed to have invested. When the scam broke out, they realized that the money was gone, but they did not have the securities. The custodian in the MF structure is in a position to prevent such risks.

MUTUAL FUND STRUCTURE

Figure 1: MUTUAL FUND STRUCTURE

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Types of schemes
MF schemes can be offered with any of a range of investment objectives, each corresponding to a certain point in the risk return matrix. In a broad sense, they can be categorised based on tenor or asset class or position philosophy or geography.

Types of schemes by Tenor Open-end schemes


These are schemes that do not have a fixed maturity. The MF ensures liquidity by announcing sale and re-purchase price for the units of an open-end scheme on an ongoing basis. Investors who wish to exit from an open-end scheme can offer their units to the MF for redemption, generally called re-purchase . Similarly, the MF can sell new units to investors desirous of participating in the scheme, generally called sale. Every such transaction goes to change the unit capital of the scheme. The unit capital would increase when additional units are sold; it would decrease if existing units are repurchased. Additionally, the MF can choose to provide liquidity through listing of the scheme in the stock market. In such a scenario, investors can either trade in the market (in which case there is no change in unit capital of the scheme); or opt for the sale and re-purchase route (in which case unit capital of the scheme is impacted). As can be expected, arbitrage opportunities come up when there are two alternative options for dealing in the same units.

Closed-end schemes
These are schemes that have a fixed maturity. Liquidity in such schemes is available through listing in the stock market. Trades in the market entail change in the ownership of the units, but do not alter the schemes unit capital.

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Occasionally, closed-end schemes provide a re-purchase option to investors, either for a specified period or after a specified period, normally up to a total limit for all investors together, or a limit per investor. Such re-purchase would reduce the unit capital of the scheme. It is not normal for closed-end schemes to sell new units on an ongoing basis, though they could make a rights offering to existing investors.

Types of schemes by asset class Securities Mutual funds Schemes


mutual funds schemes invest primarily in equities. Depending on the scheme objective, investments could be in growth stocks (where earnings growth is expected to be attractive), momentum stocks (that go up or down in line with the market), or value stocks (where the fund manager is of the view that current valuations in the market do not reflect intrinsic value), or income stocks (that earn high returns through dividends).

Debt / income Schemes


o Gilt Schemes Gilt schemes invest in government securities. Apart from being the most liquid securities in the debt market, government securities are eligible for liquidity support,

o Bond Schemes These schemes invest in bond securities issued by the government or any other issuer.

o Junk Bond Schemes


Junk bond schemes invest in securities that are below investment grade. The hope is that attractive returns in such poor-quality investments would more than make up for the higher risk of losing the entire investment in some cases. 15

High yield bonds is a politically correct way of referring to junk bonds. SEBI guidelines limit investment in unrated securities and securities that are below investment grade to 25 per cent of the net assets of any scheme. Therefore, it is not possible to have a junk bond scheme in India.

o Money market / Liquid Schemes These schemes invest in short term debt instruments. As will be seen in Chapter 7, such schemes are less volatile.

o Balanced Schemes
Balanced schemes invest in a mix of equity and debt. The debt investments ensure a basic interest income, which the fund manager hopes to top up with capital gains on the investment mutual funds. However, losses can eat into the basic interest income and capital. The greatest benefit of a balanced investment program is that it makes risk more palatable. An allocation to bonds moderates the short term volatility of stocks, giving the risk averse long term investor the courage and confidence to sustain a heavy allocation to equities. Choose a balance of stocks and bonds according to your unique circumstances your investment objectives, your time horizon, your level of comfort with risk, and your financial resources. One of the common allocations used in these types of funds is known as the robot mix: 55 per cent in stock, 35 per cent in bonds, and 10 per cent in cash equivalents. A capital protected scheme is a kind of balanced scheme, where a part of the initial issue proceeds is invested in gilts that would mature to a value equivalent to the unit capital of the scheme. Thus, the investors capital is protected. The remaining issue proceeds (excess over what is required to be invested in gilts for capital protection) is invested in risky investments. In such schemes, an investors worst case scenario is that her investment does not grow. But the principal amount invested is covered by maturity proceeds from the investment in gilt securities. 16

o Physical assets Technically, mutual funds can invest in any asset. This includes real estate, precious metals (gold, silver), other metals (aluminium, steel), oil and commodities. The regulatory framework in India however does not currently permit MFs to invest in physical assets. SEBI is actively considering a proposal to permit schemes that would invest in real estate.

Types of schemes by Position Philosophy o Sector funds


Regular equity funds invest in a mix of equities that are spread across different sectors. Therefore they are often referred to as diversified equity funds. Sector funds, on the other hand, are expected to invest in only a specific sector. For instance, an energy fund would only invest in energy companies. Thus, an investor who is bullish about energy and wants an upside that is linked entirely to this sector (without a dilution arising out of exposure to other sectors) would invest in such a fund. As per the Standard Observations (explained in Chapter 8), at least 65 per cent of the investible moneys of any fund need to be invested in the concerned sector / type of security. In India, on account of a mix of legal slackness, fund managers lack of guts and investors lack of understanding of the concept, we have a situation where sector funds have ended up becoming diversified equity funds with a bias towards the identified sector! Unfortunately, we have also seen diversified equity funds managed as if they were sector funds.

o Index funds Index funds seek to have a position that replicates an identified index, say, BSE Sensex or NSE Nifty. Such a position can be created through either of 2 methods -

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It can be done by maintaining an investment mutual funds that replicates the

composition of the chosen index. Thus, the stocks in such a funds mutual funds would be the same as are used in calculating the index. The proportion of each stock in the mutual funds too would be the same as the weight of the stock in the calculation of that index.

This replicating style of investment is called passive investment.

Index funds are

therefore often called passive funds. Funds that are not passive are managed funds.

Index schemes are also referred to as unmanaged schemes (since they are passive) or

tracker schemes (since they seek to track a specific index).

Passive investment places lower demands on the time and efforts of the AMC. All

that is required is a good system that would integrate the valuation of securities (from the market) and information of sales and re-purchases of units (from the registrar) and generate the requisite buy / sell orders. Therefore, management fees for index funds are lower than for managed schemes.

Alternately, a MF, through its research can identify a basket of securities and / or

derivatives whose movement is similar to that of the index. Schemes that invest in such baskets can be viewed as active index funds.

Internationally, MFs have proprietary models that help create baskets that seek to

outperform the market during a boom, while falling lesser in a bearish market.

Enhanced Index Funds


The enhanced index fund is a managed index fund that seeks to beat the performance of its benchmark index by at least 0.1 per cent, but no more than 2 per cent. (If the index funds performance were to exceed this 2 per cent cap, it would then be considered a stock mutual fund.)

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Exchange Traded Funds


These are open-end funds that trade on the exchange. benchmarked to a stock exchange index. Like index funds, they are

The differences with respect to index funds are : A single NAV is applicable for the day in the case of any open-end funds.

Therefore, a single price would be applicable for all investors who buy units of an openend index funds on the day. Similarly, a single price would be recoverable by all investors who wish to exit from an open-end index fund on any day.

ETF, on the other hand, is traded in the market place. Therefore its price keeps This intra-day fluctuation in ETFs appeals to short-term

changing during the day. investors.

The ETFs AMC does not offer sale and repurchase prices for the Units. Instead, it

appointsdesignated market intermediaries (market makers) who buy or sell units from the investors.

Thus, an investor who wants to invest in an ETF would go to a market maker who is

expected to offer two-way quotes at all times. An investor who chooses to invest in the ETF would thus know precisely how many units in the ETF she will get against her investment.

The moneys collected from investors would be invested in index scrips by the market These investments would become a part of the ETFs mutual funds.

maker.

Based on two-way quotes of the market maker, the investor would know how much

she would recover if she were to exit from the ETF. On exit, the ETF will release index scrips from its mutual funds, which the market maker would sell to pay the investor.

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The market maker makes

money based on the spread in the two-way quote.

Competition between market makers is expected to keep the bid-ask spread low.

This structure also ensures that the AMC does not need to pay a commission to

market intermediaries for bringing investors into the fund. Similarly, there are no loads recovered by the AMC (the concept of loads is discussed in Chapter 6).

Thus, a significant element of cost is eliminated for the investors. Investors only bear

a cost that is implicit in the bid-ask spread. Low expense ratio is an attraction for any investor.

Returns in an open-end fund can be affected by significant churning of unit holding.

Suppose today many large applications are received in the fund, and tomorrow there are several large redemptions. The fund manager would be under pressure to buy and sell securities in the market to match such sudden inflows and outflows. Besides, most openend funds maintain 5-10% in liquid assets to meet the cash flow requirements for possible redemptions. These factors can pull down returns in an open-end index fund. ETFs, as seen earlier, have a different structure where the fund receives (if investor invests) and gives securities (if investor disinvests). Since such transactions are effected in kind, short-term investments and disinvestments do not affect the performance of the fund. Long-term investors like this feature in ETFs.

Fixed Maturity Plans / Serial Schemes.


Fixed Maturity Plans (FMP) seek to eliminate the risk of such capital loss by investing exclusively in a pre-specified debt security. Thus, if an investor is desirous of investing for four years, she can invest in a fund that will invest in a pre-specified 4-year security.

On maturity, the scheme would redeem the security and pay the investor. The investor, however, can exit earlier. But what she would recover in an early exit would depend on the market situation at her time of exit.

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Thus, an investor is assured a fixed return, if she stays invested in the scheme for the period originally envisaged. But she also has an earlier exit option, in case she invests in a FMP that is structured as an open-end scheme.

Normally, an assured returns scheme can be offered only if there is a named guarantor who offers the guarantee. A FMP is anassured returns scheme through the back door, since the investor is reasonably assured of the expected return (subject to credit risk and re-investment risk) if she holds the units for the originally envisaged period but the return is assured without a named guarantor.

Further, as explained later in this chapter, mutual funds are tax efficient. The income accrued in the scheme would not bear a tax, and would therefore be revested on gross basis. If the same income were to be received directly by the investor, it would be subject to tax, thus reducing the amount available for re-investment.

When a series of FMPs are issued for different maturities, they are called Serial Funds. These can choose to invest exclusively in government securities, in which case they become Serial Gilts. Alternatively, they can invest in non-government securities, in which case they become Serial Bond SchemesNon-government securities of course have a risk of default (credit risk), which does not exist for government securities.

Hedge Funds or Leveraged Funds


While the name hedge funds gives a psychological comfort of a fund being low on risk, nothing can be further away from the truth.

Hedge funds are leveraged funds where the fund manager invests a mix of funds belonging to its investors (unit capital and reserves) and funds from lenders (borrowed funds). A leveraging of two would mean that for every Re 1 of unit capital, an additional Rs 2 is borrowed, thus investing Rs 3 in the market. Borrowed funds have interest and repayment obligationsthat are independent of how the market performs. Thus, in bad market conditions, a non-leveraged fund only needs to 21

bear a loss; a leveraged fund would also need to generate additional resources to meet the interest and repayment obligations on borrowed funds. However, when the returns on the investment mutual funds are higher than the cost of borrowed funds, investors in a leveraged fund earn super-normal return. The following illustration will explain the concept better: Table 1: RETURN ON MUTUAL FUND UNIT

Scheme : Leverage: Unit Capital (Rs) Loans (Rs) Investible funds (Rs) Interest rate on loan Portfolio Return Earning before interest (Rs) Interest (Rs) Profit (Rs) Return on unit capital

A Nil 100 0 100 N/A 20% 20 0 20 20%

B 1 time 100 100 200 15% 20% 40 15 25 25%

C 2 times 100 200 300 15% 10% 30 30 0%

Hedge funds are therefore extremely risky funds; the level of risk being a function of the extent of leveraging. Why then the name hedge fund?

Suppose an investor has a short-sold position of Rs 100 in the market. If the market goes up by 20%, then the investor effectively loses Rs 20.

If such an investor wants to neutralize this short-sold position, she can either purchase stocks worth Rs 100. Or, if she invests in Scheme B in the above example, she only needs to invest Rs 80 to fully reverse her short-sold position of Rs 100. The 25% gain on Rs 80 invested in Scheme C will give her Rs 20 precisely the amount she would lose in her earlier short-sold position.

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Thus, if a person already has an exposure that he wants to reverse, hedge funds help him do that with minimum capital outlay (and therefore cost). Hence the name hedge funds.

As seen in Scheme C, it is also easy for hedge funds to wipe out their profits or even report significant losses.

Thus far, by limiting the scope for borrowing by MFs (as detailed in Chapter 7), the Indian regulatory framework has kept hedge funds out.

Option income
Suppose you would like the right, but not the obligation (an option) to buy 100 shares of Company Z from me at a price of Rs 15 some time in the future. I will give you that option only if you pay me an option premium. (In option market terminology, I would be the writer of that option).The option premium would be my income, because it is not refundable to you. There are 2 implications for me as the option writer:

If the stock of Company Z rises above Rs 15 in the market, you would exercise

your option. in which case I would lose out on the opportunity of gaining from that appreciation (opportunity loss).

If I operate on a fully hedged basis, then I will retain 100 shares of Company Z in

my mutual funds, so that I can offer them if you exercise your option.

Thus, I effectively lose my right to sell the shares (dead asset). During the period that I hold the share, the dividend would belong to me (holding income).

A typical option income fund will earn option premium through writing options on securities where the holding income is attractive enough to retain the security as ]a dead asset. The underlying view of the fund is that holding income plus option premium more 23

than covers for the opportunity loss.Option Income funds are permitted in India, though none has been launched so far.

Types of schemes by Geography Country / Region funds


Country funds invest in securities from a specific country or region. The underlying belief is that the chosen country or region is expected to demonstrate superior performance, which, in turn, would be favourable for the securities (equity or debt) of that country. For instance, funds that invested in Japan between 1990 and 1991 would have nearly doubled their assets in the boom that followed. But funds that were invested in South East Asia during 1997-98 bit the dust.The returns on country funds are affected not only by the performance of the market where they are invested, but also by changes in exchange rates.

Offshore funds Offshore funds mobilise moneys from investors for investment outside their country. Indian mutual funds have been permitted to invest in foreign debt securities in countries with fully convertible currencies. The debt instruments, short term or long term, would need to have the highest rating (foreign currency credit rating) by accredited/registered credit rating agencies, say A-1/AAA by Standard & Poor, P-1/AAA by Moodys, F1/AAA by Fitch IBCA, etc. The MF may also invest in government securities where the countries are AAA rated. Indian mutual funds may also invest in the units / securities issued by overseas mutual funds or unit trusts, which invest in the aforesaid securities or are rated as mentioned above and are registered with overseas regulators.For Indian mutual funds as an industry, there is a cap of $500mn on investment in American Depository Receipts (ADR) / Global Depository Receipts (GDR) and foreign securities. Each mutual fund is permitted to invest up to 10% of its net assets as on 31.3.2005. The foreign investment limit for each mutual fund cannot be more than US$50 mn, nor less than US$5mn.

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RESEARCH GUIDANCE
We provide you with highly successful Trading/Investment calls to enhance your profitability. Our research will guide you in making informed decisions which will make your WEALTH GROW.

RESEARCH ON YOUR MOBILE


Imagine how profitable you can be if critical research calls are available to you on time. We at ATS deliver trading calls to your mobile through SMS on time, every time.

PERSONALIZED SERVICE
We understand that each of our clients have unique set of trading requirements. We customize our service package to suit your trading needs

PROMOTERS OF THE COMPANY Mr. Vikas Jain - ATS Founder


Mr. Vikas Jain is Managing Director of Aditya Trading Solutions Private Limited (ATS) and started the business along with co-promoter, Mr. Sunish C V in 2006. Prior to this, Mr. Vikas Jain was the part of Asset Liability Management Team of Standard Chartered Bank. IN the year 2005 he was conferred the Best Performer Award for his outstanding performance in the development of Wholesale Banking by Standard Chartered Bank. Earlier, Mr. Vikas Jain worked as Risk Manager, in Chemoil Corp, which is the largest independent oil bunkering company in United States of America and was in charge of oil trading positions for various group companies in Chemoil Corp. Mr. Vikas Jain is part of many social service and charity programs and channels his contributions through the Rotary club of Madras Downtown. Mr. Vikas Jain is a post graduate in Business Management and holds Master in Finance from the Institute of Chartered Financial Analysts of India.

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Mr. Sunish C V Director


Mr. Sunish C V is the Co Founder and Director of Aditya Trading Solutions Private Limited (ATS). Sunish C V has a 10-year professional track in the field of investment banking, where he has had a challenging career across various regions and businesses. Excelling in all responsibilities handled, he has acquired functional expertise in Risk Management, Retail Broking, Asset Management and corporate planning. As the Manager of the Risk Mgmt Team in Chemoil Corp of USA, Sunish C V held a number of leadership roles, particularly in setting up Risk Management Policies and its implementation throughout various trading desks of Chemoil group across the world. Prior to this, Sunish C V, held various positions in Systematix Corporate. He was part of the team which leads the company from a one branch broking company to its present stature of one of the leading brokerage houses in India. Sunish C V is a member of the Institute of Chartered Financial Analysts of India. He also delivers guest lectures at National Institute of Technology, Trichy, and ICFAI Business School. Sunish C V graduated in Electronics and Communication Engineering, a Master of Business Administration from Regional College of Engineering, Trichy and is a Chartered Financial Analyst. Sunish C V is affiliated with certain non-profit organizations, including the Rotary Club.

Mr. Suresh Kumar P - Vice President


He is a Post graduate in Business administration (Marketing) from NIT Trichy, and a Bachelor of Engineering (Mechanical) from HCE Chennai. He had worked with Apex management consulting P ltd as a business consultant and had advised Murugappa group of companies, Godrej saralee ltd and Reynolds pens for Business process reengineering, ERP implementation and productivity improvement.

27

Ms. Divya B - Financial Controller


She is responsible for Operational development at ATS. She has done M.B.A (Finance) and associated with ATS since August 2007. She started her career with ATS as Accounts Assistant, later on appointed as Back Office Manager before assuming the role of Financial Controller.

Mr. Manoharan - Business Leader


Joined as a Dealer and promoted to Business Leader he has been awarded Best Branch Manager for 2012. He is the person who gives equal importance to hard work and smart work. He has over 5 years of industry experience He has a graduate in Corporate Secretary ship and currently pursuing Master of Business Administration - (Finance).

Mr. V Sunil Kumar - Branch Manager


Joined as a Dealer in ATS and was promoted to Branch Manager. He has even worked with Astron Technologies Pvt Ltd and has over 3 years of industry experience. He is a commerce graduate

Mr. Lenish K - Risk Manager


He is in employment with Aditya Trading Solutions Private Limited (ATS) for the past Four and Half years and showed a significance increase relationship between clients.

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PRODUCTS AND SERVICES

EQUITY
The section attempts to assist and guide our valuable investors in their decision making process with the thorough company-specific in-depth analysis. Based on the complete evaluation and study of the stocks, done by our highly experienced and efficient research and analytical team, the investors, with different risk appetites, may judge their past, present and likely future position in equity shares. The report covers various aspects like valuation, revenue projection, future financial position of the business, key ratios, trading comparables, market data, current positioning of the company and industry, key developments and other relevant details. To make the information reader friendly and simpler, it is also presented in tabular and graphical forms. Analysis of impact of any important business, economic or political development, on the revenues and margins is conduct to give a clear insight to the investors. Finally an investment call to BUY, SELL, HOLD, or ACCUMULATE is provided by the analyst. Besides, a similar approach is followed in offering industry reports as well.

DERIVATIVES
Derivatives are tools used to hedge position of an investor in a future position. However, in recent times, Futures and Options have also grabbed investors attention in view of their lucrative returns. A daily derivative report is provided in order to give an insight on the day-to-day F&O highlights, overview, pivot table, nifty put call ratio over the month, daily future open interest gainers & losers and recommendation. We also provide information on daily trading strategy in the F&O.

IPO
This includes the extensive coverage of the companies entering the capital market with their Initial Public Offers (IPO). Mostly, investors are unaware regarding the longevity of these companies operations and where will they stand in future. Our IPO report, which incorporates all the relevant information including future earnings forecast, growth and 29

its current market performance, acts as a complete investment guide. Besides, our specialized team also ranks the IPO, in order to make the investment decision simpler.

MUTUAL FUND
The section includes the daily updates in Mutual funds including New Fund Offers, Dividend declaration, buying and selling by Mutual funds in equity as well as in debt market. Besides, it also highlights the in-depth analysis on mutual funds, in which the news and developments, category wise top gainers and over all top gainers schemes, portfolio and scheme analysis of top three schemes are covered along with the updates on NFO and latest dividends.

COMMODITIES
A commodity, the only asset class that is negatively correlated to bonds is a powerful tool for diversification, and has developed into a new opportunity for investors to get heavy returns. With ATS, you can cash on the lucrative opportunity of investing in commodities or the raw materials used to create the products that people really need, demand for which is endless and ever increasing. Our report covers various aspects including Agricultural Commodities, Precious Metals, Base Metals, Energy segment, coupled with the analysis of impact of the global and domestic news. Finally an investment call to BUY, SELL, orHOLD, is provided by the analyst, and a similar approach is followed in offering industry reports as well.

ANNOUNCEMENTS
Daily corporate announcements made by the top companies in the BSE and NSE are covered throughout the day, coupled with the analysts view on the major business events.

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COMPANY INFORMATION
An overall company snapshot captures all the relevant details including contact information, top management, listings, latest financial results, market performance, news, shareholding pattern and announcements.

TRADING GUIDELINES
Equity trading is no more risky, as now ATS is there with you to take care of your investment portfolio by providing assistance in the world of stock markets. We support our customers by providing them timely recommendations, fact based reliable and "dependable" research calls. Bundled with this, we also offer value-added tools and services to our customers to enrich their trading know how.

Investing in equities is considered risky due to the highly volatile nature of stock markets and their dependence on the varied factors ranging from global and domestic economic and political situations.

However, the high returns from equities offset the underlying risk and can become the best option for long term wealth accumulation. Hence, before investing you should always a consult a knowledgeable and experienced expert who will guide you during the course of investment process. We want to explain some trading guidelines, please implement our trading guidelines. Trade management is more important than successful trading tips.

1. Please place stop loss orders in trading system not in your mind, without stop loss don't trade its nothing but suicide attempt.

2. Trade all our tips, do not select our tips. If you have Rs.50,000 rupees, non-risky traders fix your each trade value as Rs.25,000 (50% value of your cash), risky traders fix your each trade value as Rs.50,000(100% value of your cash). 31

3. Book 75% quantity at first target then change stop loss to actual recommended price for remaining quantity, place first target order in advance, sometimes price come and go very quickly. Execute trades very quickly price movements are very sharp in intraday.

4. Small difference is common, you can execute trades with small difference, do not look for exact recommended entry prices and target prices.

5. If you trade all our tips and maintain all trades equal value then only profits and losses will be balanced systematically.

6. Please trade with trading discipline; if we protect our capital with good trading discipline, profits automatically follow otherwise only luck will dominate you. Dont depend on luck.

7. Always trade with 1 lot after recover your principal amount, you can trade as you want.

8. Trade in the most active markets and avoid inactive markets. Also, trade the contract months with the most open interest. They are more liquid.

9. What is meaning of trade reverse:

For example if we buy and stop loss trigger, sell at stop loss price then buy position will become sell position, easy method to reverse to trade: just place double quantity stop loss order

10. Avoid taking small profits and big losses, never add to a losing position.

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1. ATS CLASSIC EQUITY FUND& IMPERIAL FUND TABLE 2: ANALYSIS OF ATS CLASSIC EQUITY FUND & IMPERFUND

RISK AND RETURNS


Mean Standard Deviation Sharpe Beta -1.23 4.99 -0.27 0.83

Treynor Sortino Correlation Fama

-1.61 -0.43 0.83 -0.15

Scheme Performance (%) as on FEB 20, 2012 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Since Inception -2.72 3.96 -34.29 -48.42 -4.05 NA 2.87

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PORTFOLIO
PORTFOLIO ATTRIBUTE P/E P/B Dividend Yield Market Cap (Rs. in crores) 16.48 as on Dec- - 2011 4.75 as on - Dec- 2011 1.48 as on Dec- - 2011 66,387.54 as on Dec- 2011 Large Mid Small Top 5 Holding (%) No. of Stocks Expense Ratio (%) 72.32 as on Jan - 2012 5.45 as on Jan - 2012 NA 32.35 as on Jan - 2012 23 2.33 STYLE BOX

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TOP 10 HOLDINGS
Stock Sector P/E Percentage Qty of Assets Net Value Percentage of Change with month Other Debts Debt Investments Reliance Industries Ltd Oil & Gas, 13.33 8.07 & 131,432 17.40 7.39 NA 12.51 NA 26.95 9.97 last

Petroleum Refinery

Bharti Airtel Ltd Hindustan Unilever Ltd Bharat

Telecom Diversified

16.13 7.38 27.23 6.38

250,865 15.90 525,313 13.74

-11.42 4.50

Heavy Electricals Electrical Equipments

& 22.36 5.86

95,552

12.62

-3.07

Electricals Ltd

Larsen & Toubro Engineering Limited Industrial Machinery Infosys Technologies Ltd Computers Software Education State India Hindustan Petroleum Corporation Ltd Bajaj Auto Ltd Oil & Bank of Banks

& 15.93 4.66

145,648 10.05

29.86

- 14.05 4.32 &

71,204

9.30

17.09

9.13

3.57

66,850

7.69

2.26

Gas, -0.47 &

3.31

249,600 7.13

4.69

Petroleum Refinery Auto &

Auto 10.60 3.15

143,256 6.79

21.41

ancilliaries 35

Whats In

Whats out

Maruti Udyog Ltd No Changes Jubilant Organosys Limited

SECTOR ALLOCATION
Auto & Auto ancilliaries Banks Computers - Software & Education Current Assets Debt Investments Diversified Electricals & Electrical Equipments Engineering & Industrial Machinery Finance Miscellaneous Oil & Gas, Petroleum & Refinery Packaging Pharmaceuticals Plastic Power Generation, Transmission & Equip Steel Telecom 3.15 9.35 4.32 7.93 12.51 6.38 5.86 6.25 5.74 1.79 16.98 1.61 2.92 2.25 2.87 2.72 7.38

36

Power Generation, Transmission & Equip Steel 3% 3% Plastic 2% Pharmaceuticals 3% Packaging 2% Oil & Gas, Petroleum & Refinery 17%

Chart Title
Telecom 7% Banks 9%

Auto & Auto ancilliaries 3% Computers Software & Education 4%

Current Assets 8%

Debt Investments 13%

Miscellaneous 2% Finance Engineering & 6% Industrial Machinery 6%

Diversified Electricals & 6% Electrical Equipments 6%

ASSET ALLOCATION (%)


mutual funds 79.57 12.51 Debt Cash & Equivalent 7.92

INTERPRETATION:
Fund Objective; To maximize performance by investing in diversified mutual funds with out any cap bias that can generate long-term capital growth. Fund Investments is not restricted to any particular market sector or company size, thereby investing across all sectors without market capitalization bias covering large-cap, small-cap and mid-cap companies. ATS Classic mutual funds Fund offers you a mutual funds whose core is invested in fundamentally strong companies that may or may not be in current market favour. The 37

1remainder of the mutual funds is invested in companies / sectors that attempt to capture an oncoming market bias ahead of the market rally.

Fund Without Any Cap Bias


In common parlance, when we say a company is big, one concludes the bigness is on account of the number of employees it employs, its turnover, its market share in its industry, but in the stock market universe what determines size is the market capitalization. Market capitalization (or commonly referred to as Market Cap) which is nothing but the product of two components- number of shares that have been issued by the company and the current share price of the company. You multiply these two and viola you get the market capitalization. The stock market universe can be broadly classified into three categories of stocks (refers to companies which are listed on the stock exchange). Large cap, Medium cap and Small cap companies. Though there is no formal definition of categorization of companies into Large, Medium or Small, broadly speaking Large Cap refers to companies with large market capitalization and small- in the Indian context can be construed as companies with market capitalization between Rs 50 - Rs 150 crores and quite naturally Medium Capitalisation refers to companies that fall in between Large and Small.

The ground rule quite simply is - a large cap company is relatively much safer as compared to a company with a small-cap. Due to their small size, lack of established brand equity, minimal liquidity, small cap companies are most susceptible to economic and environmental threats.

Evaluating Large and Mid cap companies


There are relevant benchmarks that try and slot companies as per their market cap. For example, the BSE 200 is an index that comprises the top 200 listed companies based primarily on their market capitalization. The BSE 500index represents nearly 93% of the total market capitalization on Bombay Stock Exchange Limited. The BSE Mid-Cap 38

tracks the performance of companies whose market capitalization falls between 80 -95% of aggregate total market capitalization and the BSE Small-Cap index tracks the performance of remaining 5% companies (95-100%).

All funds have a benchmark (which serves as a basis for comparison) and the investment strategy of the fund decides what kind of companies a fund would invest in.

A fund that invests in small and mid cap companies can also be diversified in the sense that it invests across various industries within the small and mid cap space.

The Classic mutual funds Fund Diversification across market caps


TheATS Classic mutual funds Fund is an open-ended diversified equity fund that will endeavor to invest in well-managed sustainable businesses. The mutual funds of securities will be well diversified across market caps and sectors, so identified, to mitigate overall risk.

Diversification follows the maxim of not putting all your eggs in one basket. The extent of diversification can though differ. When we say the Classic mutual funds fund has no market cap bias, we are merely referring to the fact that the Fund selects companies irrespective of their market cap. It does so purely on the merit of the companys current performance and future promise it holds. However the fund mindful of its motive of true diversification it would try and ensure that there is no concentration of companies belonging to a particular market cap or a particular industry/ sector.

Unique Features of Classic mutual funds Fund?


The Classic mutual funds Fund seeks to outperform the market by employing strategies like sector rotation and moving weights dynamically across different market capitalization spectrum.

39

De-mystifying Sector Rotation


When you travel to a foreign country it is quite natural to expect the local attire to differ from the attire at home. And the best way to gel well in a foreign country is to follow the old maxim When In Rome Do As The Romans Do.

By doing so you are merely, and most importantly, temporarily changing your external demeanor and attire but you are certainly not changing your intrinsic character or basic nature. You do so purely to gain instant acceptability and thus profit from it.

Thematic preference
While well-managed companies do perform well in the long run, from time-to-time, there are certain themes that seem to catch investor fancy. And it is this that the Classic mutual funds Fund tries to capture. Carrying forward the analogy to the Classic mutual funds Fund, one could describe this fund as a fu\intrinsic core comprising well-managed companies that hold great promise in the future or the long-term but an adaptable exterior that seeks to dip into the current market sentiment and attempts to profit from it by investing in companies that have caught investor fancy.

Market Preference
For example the BSE Mid-Cap 200 Index scaled its new high in two long rallies of about seven months each between July 2006 and January 2007, and from August 2007 to March 2008. Thus it is not uncommon to hear stocks belonging to a particular sector are performing better as the market anticipates that the build-up of certain market-related, consumer preference related or economy related conditions portend better for some sectors than others. While each of these rallies was driven primarily by the expectations of an upturn in economic activity, the underlying factors and sectoral themes that propelled them were different. First the sector focus was skewed towards pharma and software (global outsourcing story- where the world at large considered India as a cheaper base for 40

manufacturing and delivering service and hence companies that), banking (led by the decline in interest rates) and power (based on power reforms- the power sector caught the fancy of the markets on account of the sector emerging from the regulatory haze and was driven by huge capital investments.).

Sectoral Preference
More recently with the economy growing at 8-9 %, consumption (that is when consumers i.e. people like you and me spend or consume goods and services) was a dominant theme in the markets. And this purely domestic consumption story is one of the few ideas that professional investors are almost unanimously positive aboutTraditionally the universe of stocks that benefited from the consumption theme was restricted to the FMCG sector but no longer. Sectors like retailing, media, tourism, alcoholic beverages, automobiles, telecom and housing too stand to gain during a consumption theme. However within this theme, the performance in the stock market over the past year has been mixed. Obvious beneficiaries of consumption, such as FMCG, retailing and hotels have been underperformers. So it not necessary that all sectors within a theme perform equally well.

The one thing to remember in such market fancies is that companies in such sectors tend to witness a sharper rise in prices in the medium term. Again it is not uncommon for markets to be in an experimental phase for the market, where sectors and stocks may catch investor fancy for a month or quarter, only to be dumped unceremoniously in the next few months.

Future Preferred Sectors


There is an opportunity here. But deciphering these conditions much before they occur and further on the sectors within it is easier said than done. This is much like a surfer trying to predict the size of the next big wave and accordingly position himself to ride it rather than get swamped by it.

41

Thus a fund that seeks to do just this, that is, predict the next big wave and ride it when it actually develops can have very volatile returns in the short to medium term.

Consistancy
The point therefore is simple. Anticipating the dominant theme and within that the sector is something that even to most professionals is a challenge. Therefore most diversified equity funds prefer cherry-picking robust well-managed companies with a clear eye only on the long term. Such funds therefore tend to under-perform when a particular theme is in vogue and if the stocks in the funds mutual funds do not figure in the current market rally. So while the long term performance may look promising, it is the medium term performance that may suffer.

The Classic mutual funds Fund attempts to plug that and attempts to stay within a band of acceptability by attempting to ensure that a part of its mutual funds stays contemporary by taking medium term exposures in sectors that have caught the market fancy.

The Classic mutual funds Fund does not lose its intrinsic character or basic nature of a diversified equity fund. A large part of the mutual funds comprises companies that are carefully handpicked with a view on the long term but has a small portion that keeps rotating sectors by investing in those sectors and in turn companies that look promising in the medium term. The fund manager of the Classic Fund would attempt to constantly scan the environment and interpret which sectors-and in turn companies-would profit from the build up of prevalent conditions in the near future and thus attempt to invest early on and thus attempt to profit from these investments. Trying to mimic the Classic mutual funds Fund is much like investing a certain percentage of your mutual funds in a core diversified fund and a certain percentage that you keep rotating across sector funds trying to capitalize on the market fancy for a particular sector. Trying to mimic this is easier said than done for often trying to decipher 42

which sector will catch the market fancy is a challenge even to the most seasoned investment professional. The Classic mutual funds Fund attempts to does this for you and does away with the need of having to maintain two different sets of funds one for the very long term and one that takes advantage of the medium term. By attempting to rotate sectors the fund is more in touch with prevalent conditions.

43

2. ATS PREMIER EQUITY FUND TABLES 3: ANALYSIS OF ATS PREMIER EQUITY FUND FUND FEATURES
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Open Ended mutual funds Growth Sep 26, 2008 10 507.68 as on Jan 30, 2012

Last Declared Minimum

Dividend NA

5000

Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Daily Amount Bet. 0 to 49999999 then Entry load is 2.25%. and Amount greater than 50000000 then Entry load is 0%. Exit Load If redeemed bet. 0 Year to 1 Year; ; and Amount Bet. 0 to 49999999 then Exit load is 1%. and Amount greater than 50000000 then Exit load is 0%. Daily

44

Fund Manager SIP STP SWP Expense ratio(%) Portfolio Turnover Ratio(%)

Kenneth Andrade .

2.43 127

SCHEME PERFORMANCE (%) AS ON FEB 20, 2012 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Since Inception -1.70 9.18 -26.21 -35.83 NA NA 0.37

RISK
Mean Standard Deviation Sharpe Beta -0.88 5.05 -0.20 0.86

Treynor Sortino Correlation Fama

-1.15 -0.33 0.85 0.22

45

PORTFOLIO
PORTFOLIO P/E P/B Dividend Yield Market Cap 69,514.24 as on Dec (Rs. crores) Large Mid Small Top Holding (%) No. of Stocks Expense Ratio (%) 20 2.43 75.51 as on Jan - 2012 NA NA 5 31.52 as on Jan - 2012 in 2011 14.89 as on Dec- 2011 2.82 as on Dec - 2011 1.79 as on Dec - 2011 STYLE BOX

TOP TEN HOLDINGS


Stock Sector P/E Percentage of Assets Net Qty Value Percentage of with month Other Debts Debt Investments Reliance Oil & Gas, 13.33 7.43 75,076 9.94 31.75 NA 11.33 NA 15.15 67.77 Change last

46

Industries Ltd

Petroleum & Refinery 9.13 6.63 77,000 8.86 -8.34

State Bank of Banks India

Oil & Natural Oil & Gas, 8.79 Gas Ltd Corpn Petroleum & Refinery

6.12

125,000 8.19

63.69

ICICI BANK Banks LTD. Bharti Airtel Telecom Ltd ITC Ltd Tobacco Auto & Auto ancilliaries Banks Indian Cement Pan Masala

11.13 5.94

190,870 7.94

-8.70

16.13 5.40

114,000 7.23

-11.36

& 21.26 5.39

400,000 6.06 7.20 15.89

109.67

Oil Oil & Gas, -1.16

4.74

142,200 4.34 6.34 4.41 13.16 45,150 5.90

4.66

Corporation Petroleum & Computers - Software & Education Ltd Current Assets Refinery Infosys Technologies Ltd Ambuja Cements Ltd Computers - 14.05 4.41 Software Education Cement 7.50 4.34 &

75.43

819,000 5.80

1.10

WHATS IN

WHATS OUT

Reliance Petroleum Ltd Maruti Suzuki India Ltd ABB Ltd Sun Pharmaceuticals Industries Ltd

Larsen & Toubro Limited Maruti Udyog Ltd Punjab National Bank

47

Debt Investments Electricals & Electrical Equipments Finance Metals Oil & Gas, Petroleum & Refinery Pharmaceuticals Telecom Tobacco & Pan Masala

11.33 6.02 2.06 1.03 23.51 1.41 5.40 5.39

SECTOR ALLOCATION
Tobacco & Pan Masala 5% Pharmaceuticals 2% Telecom 5%

Chart Title

Auto & Auto ancilliaries 6%

Banks 16% Oil & Gas, Petroleum & Refinery 24% Metals 1% Finance 2% Electricals & Electrical Equipments 6% Current Assets 13% Debt Investments 11% Cement 4% Computers Software & Education 5%

ASSET ALLOCATION
Mutual funds 75.51 Debt 11.33 Cash & Equivalent 13.16

48

INTERPRETATION:
The funds compact mutual funds of large-caps is likely to weather the current market correction better. The one-year return, although at -2.5 per cent, has declined lesser than the diversified fund category average of -14 per cent, suggesting that the mutual funds may have higher tolerance to bear phases. The large-cap tilt also holds promise for a lead rally when the market makes a recovery. However, given the funds short track record of just over two years since its launch in March 2009, investors can avoid fresh exposure to the fund and instead watch its performance against such peers as Sundaram Select Focus or Kotak-30. The funds monthly return pattern since its launch also suggests that while it has managed to contain the downside better than its benchmark BSE-200, the returns on the upside have lagged behind.

SUITABULITY:
ATS Imperial mutual funds provides exposure to stocks of companies that are large in terms of their business as well as market capitalization. To this extent, the fund may be suitable for novice investors looking to enter the equity market through exposure to prominent stocks. The compact mutual funds of less than 25 stocks also allows the fund to take focused bets, which, if timed well, hold potential for higher returns.

PERFORMANCE:
The time of launch did not prove to be very auspicious for the fund as it had to face the May 2009 correction soon after raising funds. However, the correction could have provided a good window of opportunity to enter the market. The funds return of about 11 per cent since its launch in March 2009 is superior to returns generated by diversified funds that were launched during the same period. This

49

performance appears reasonable given the bout of corrections and the absence of any prolonged rally since the fund launch. ATS Imperial returned 15 per cent over the last two years, beating its benchmark by two percentage points. However, the monthly return since inception suggests that it has had difficulty in consistently beating the benchmark. While it did so in just 11 of the 26 months since inception, the fund has performed well against the Sensex beating the index over 80 per cent of the times.

PORTFOLIO OVERVIEW:
The fund, as part of its strategy, also seeks to invest in companies that have unlocked potential by hiving off potential businesses and also in companies that are into emerging sectors. The mutual funds holds stocks such as Larsen & Toubro, Suzlon Energy and Gujarat NRE Coke, reflecting the above themes. The fund increased exposure to software and Parma as defensive bets. This has reduced losses after its worst quarterly performance between January-March 2011.

OBJECTIVE
To generate long-term capital growth from an actively managed mutual funds of predominantly equity and equity related instruments. The Scheme mutual funds would acquire, inter alia, small and medium size businesses with good long term potential, which are available at cheap valuations. Such securities would be identified through disciplined fundamental research keeping in view medium to long-term trends in the business environment

50

3. ATS ARBITRAGE FUND


TABLES 4: ANALYSIS OF ATS ARBITRAGE FUND

FUND FEATURE
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Open Ended mutual funds Growth Sep 26, 2008 10 507.68 as on Jan 30, 2012

Fund Manager SIP STP SWP Expense ratio(%) Portfolio Turnover Ratio(%)

Kenneth Andrade .

2.15 21

Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load

NA 25000 Daily Daily Amount Bet. 0 to 49999999 then Entry load is 2.25%.

Exit Load

If redeemed bet. 0 Year to 1 Year; Exit load is 1%.

51

Scheme Performance (%) as on FEB 20, 2012 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Since Inception -1.70 3.69 -37.13 -47.85 3.35 NA 5.60

RISK
Mean Standard Deviation Sharpe Beta -1.12 4.78 -0.26 0.72

Treynor Sortino Correlation Fama

-1.70 -0.40 0.71 -0.08

52

PORTFOLIO

PORTFOLIO ATTRIBUTE

STYLE BOX

P/E

14.89 as on Dec 2011 2.65 as on 2011 1.24 as on 2011 as on Dec Dec -

P/B

Dividend Yield

Market Cap (Rs. 3,217.71 in crores) Large Dec - 2011 6.86 as on 2012

Jan -

Mid

56.17 as on Jan 2012 8.44 as on Jan 2012

Small

Top 5 Holding 26.34 as on Jan (%) No. of Stocks Expense (%) 2012 26

Ratio 2.15

53

TOP 10 HOLDINGS
Stock Sector P/E Percentage Qty of Assets Net Value Percentage of Change with month Other Debts Shree Debt Investments NA 17.75 NA 90.11 34.04 8.16 last

Renuka Sugar

29.02 7.52

4,800,000 38.16

Sugars Ltd. Exide Industries Auto Ltd Other Equities Shriram Transport Finance Company Ltd Coromandel Fertilisers Ltd Fertilizers, Pesticides Agrochemicals Blue Express Ltd PTC India Ltd. Power Generation, 16.67 3.63 Transmission Equip Axis Bank Ltd Banks 9.74 3.55 415,000 18.00 -28.67 20.40 & 2,732,004 18.43 -1.88 Dart Miscellaneous 12.75 3.70 432,231 18.80 2.70 & 4.41 3.95 1,846,789 20.07 15.24 & Auto 11.48 5.06 6,317,773 25.68 -13.08

ancilliaries Miscellaneous Finance NA 4.49 4.94 4.87 NA 25.10 -13.38 -3.50

1,313,945 24.72

Balrampur Chini Sugar Mills Ltd

10.30 3.54

3,000,000 17.97

54

SECTOR ALLOCATION
Auto & Auto ancilliaries Banks Cement Computers - Software & Education Consumer Durables Current Assets Debt Investments Electricals & Electrical Equipments Engineering & Industrial Machinery Fertilizers, Pesticides & Agrochemicals Finance Housing & Construction Leather Miscellaneous Oil & Gas, Petroleum & Refinery Power Generation, Transmission & Equip Sugar Textiles Trading Transport & Travel 7.45 3.55 4.56 1.47 2.35 5.84 17.75 3.31 1.58 6.53 6.49 2.71 2.37 8.65 1.14 3.63 11.06 5.15 2.36 2.04

55

Hotels & Resorts 0% Finance 4%

Oil & Gas, Petroleum & Refinery Pharmaceuticals Housing & 9% 5% Construction 5% Metals Banks 3% 10%

Chart Title

Auto & Auto ancilliaries 2%

Fertilizers, Pesticides & Agrochemicals 1% Entertainment Engineering & Industrial Machinery 2% 0% Electronics 0% Current Assets 21%

Cement 8% Chemicals 2% Computers - Software & Education 5% Consumer Durables 1%

Electricals & Electrical Equipments Diversified 3% 0%

Debt Investments 19%

ASSET ALLOCATION
Mutual funds 76.41 Debt 17.75 Cash & Equivalent 5.84

INTERPRETATION
1.start of a period of high growth and profitability. 2. The investments will attempt to capture shifts in the business environment with regard to new business opportunities, new technologies, new trends, etc. 3. The fund has a bias towards a mutual funds of companies which are going to undergo transformational changes in their business prospects. We rely predominantly on in-house primary research of companies in this mutual funds. This requires meeting up with top management, employees, dealers, trade bodies, etc 56

The fund invests in small and medium-sized businesses in emerging segments or markets. This gives the mutual funds a venture-capital feel and makes it riskier than even the typical mid-cap fund. The fund lacks a long track record and, therefore, need not form part of ones core mutual funds. It could, however, complement other mid-cap funds in a mutual funds and help boost overall returns. Investments can be planned in phases, as the fund is likely to encounter a greater degree of volatility than the average diversified fund.

PERFORMANCE:
Premier mutual funds has delivered a return of 26 per cent over the past year, beating benchmark BSE-200 by a whopping 17 percentage points. Its performance is equally impressive against the broader benchmark, the BSE-500. The fund has withstood the turbulent period over the last six months and three months better than the average fund in the diversified equity category. It has shed about 28 per cent of its value since the beginning of the year, in line with the BSE-500. The net asset value has doubled since its launch in October 2008, while the BSE-500 has gained 75 per cent in absolute terms. However, Premier mutual funds has witnessed periodic bouts of underperformance and even sharp slides in value as several stocks in the mutual funds enjoy expensive valuations and are more vulnerable to a meltdown.

PORTFOLIO OVERVIEW:
The fund follows a bottom-up approach to investing. The latest mutual funds does not reveal any sector biases. Investments are stock-specific and the fund takes measured exposures to stocks. The top ten stocks account for about 45 per cent of the mutual funds. The latest mutual funds, as on April 30, 2011, sported about 27 stocks. The fund appears to favour stocks that have a niche within their category or are leaders in emerging categories. Within a mature sector such as FMCG, for instance, the fund has

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homed in on Jyothy Laboratories. Stocks such as Alphageo, Entertainment Network, Time Technoplast, Vimta Labs, Educomp Solutions, Onmobile Global and 3M India are stocks with leadership status in nascent segments. Many of these stocks have delivered significant returns over the past year and trade at premium valuations. In the near term, these stocks may remain range-bound as investors stay away from richly valued stocks. However, from a long-term perspective, they continue to hold promise. Importantly, the ability to continue to pick such stocks ahead of the market would be key to sustaining the funds performance. Premier mutual funds does not have a specific mid-cap mandate, but the fund is inherently mid-cap biased. It, however, periodically curtails inflows into the fund to ensure that it remains at a manageable size. This offers some protection to investors as it ensures that the fund sticks to its original mandate.

OBJECTIVE
To generate long-term capital growth from an actively managed mutual funds of predominantly equity and equity related instruments. The Scheme mutual funds would acquire, inter alia, small and medium size businesses with good long term potential, which are available at cheap valuations. Such securities would be identified through disciplined fundamental research keeping in view medium to long-term trends in the business environment.

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4. ATS TAX SAVER (ATSTS) FUND

TABLES 5: ANALYSIS OF ATS TAX SAVER (ATSTS) FUND FUND FEATURES


Type of Scheme Nature Option Inception Date Face (Rs/Unit) Fund Rs. Cr. Size in Value Open Ended mutual funds Growth Nov 30,2009 10 SIP STP SWP Expense ratio(%) 302.33 as on Portfolio Jan 30, 2012 Ratio(%) 1.75 Turnover 78 Fund Manager Arjun Parthasarthy , Mr. Ashwin Patni .

Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load

NA 5000 Daily Daily Entry Load is 0%. If redeemed bet. 0 Days to 30 Days; Exit load is 0.25%.

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RISK RETURN
Scheme Performance (%) as on Feb 20, 2012 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Since Inception 0.23 1.49 3.99 6.33 NA NA 7.96

RISK
Mean Standard Deviation Sharpe Beta 0.12 0.25 0.13 0.22

Treynor Sortino Correlation Fama

0.11 0.21 0.28 -0.17

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PORTFOLIO
PORTFOLIO PERRFORMANCE STYLE BOX

P/E

11.46 as on Dec 2011

P/B

1.90 as on Dec 2011

Dividend Yield

2.49 as on Dec 2011

Market Cap (Rs. in 30,740.92 as on Dec crores) Large - 2011 35.86 as on Jan2012 Mid 31.45 as on Jan 2012 Small Top 5 Holding (%) 1.50 as on Jan - 2012 16.11 as on Jan 2012 No. of Stocks Expense Ratio (%) 105 1.75

WHATS IN Chambal Fertilisers & Chemicals Ltd Jet Airways India Ltd Jindal Steel and Power Ltd. Industrial Development Bank of India Ltd

WHATS OUT IBN18 Broadcast Ltd. Wire and Wireless India Ltd. Satyam Computer Services Ltd Associated Cement Companies Ltd

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TOP 10 HOLDINGS
Stock Sector P/E Percentage Qty of Assets Net Value Percentage of Change with month Other Debts Global Debt Investments NA 14.46 NA 521,530 43.73 11.58 93.14 6.88 last

Tele- Telecom

19.08 3.83

Systems Ltd Ultratech Cement Ltd. ITC Ltd Tobacco & Pan 21.26 3.44 Masala Balrampur Chini Ltd Hindustan Petroleum Corporation Ltd Ranbaxy Laboratories Ltd Bharat Heavy Electricals Electricals Ltd Electrical Equipments JaiPrakash Associates Ltd. Hindalco Industries Ltd Housing Construction Metals 3.34 1.91 1,179,469 5.77 234.34 & 12.78 1.99 788,250 6.01 747.41 & 22.36 2.04 46,701 6.17 312.55 Pharmaceuticals -6.16 2.08 291,962 6.30 -32.72 Oil & Gas, -0.47 & 2.20 232,700 6.65 4.74 Mills Sugar 10.30 2.73 1,377,600 8.25 13.09 578,250 10.41 63.38 Cement 5.19 3.53 269,200 10.66 2.72

Petroleum Refinery

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SECTOR ALLOCATION
Auto & Auto ancilliaries Banks Cement Chemicals Computers - Software & Education Consumer Durables Current Assets Debt Investments Diversified Electricals & Electrical Equipments Electronics Engineering & Industrial Machinery Entertainment Fertilizers, Pesticides & Agrochemicals Finance Hotels & Resorts Housing & Construction Metals Oil & Gas, Petroleum & Refinery Pharmaceuticals Power Generation, Transmission & Equip Steel Sugar Telecom Textiles Tobacco & Pan Masala Transport & Travel 1.30 8.08 6.10 1.54 3.63 0.40 16.68 14.46 0.32 2.10 0.04 1.66 0.15 0.99 3.27 0.24 3.91 2.09 6.89 4.11 4.15 2.81 3.43 6.16 0.70 3.83 0.96

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Chart Title
Oil & Gas, Petroleum & Housing & Refinery Construction 9% Metals 5% 3% Hotels & Resorts 0% Fertilizers, Finance Pesticides & 4% Agrochemicals 1% Entertainment 0% Engineering & Industrial Machinery 2% Electronics 0% Electricals & Electrical Equipments 3% Pharmaceuticals 5%

Auto & Auto ancilliaries 2%

Banks 10% Cement 8%

Chemicals 2% Computers Software & Education 5%

Debt Investments 19%

Current Assets 21%

Consumer Durables 1%

Diversified 0%

ASSET ALLOCATION
mutual funds 68.86 Debt 14.47 Cash & Equivalent 16.67

INTERPRETATION
The ATS Arbitrage Fund is a fund that invests predominantly in arbitrage opportunities in the cash and the derivative segments of the equity markets. As an open ended equity fund, it offers the tax benefits that equity schemes enjoy and with up to 35% allocation in debt and money market instruments, the fund has relatively low investment risk.

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FUND FACTS OBJECTIVE


The investment objective of the Scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and the derivative segments of the equity markets and the arbitrage opportunities available within the derivative segment and by investing the balance in debt and money market instruments.

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6. ATS TAX SAVER (ATSTS) TABLES 5: ANALYSIS OF ATS TAX SAVER (ATSTS) FUND FEATURES
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Close Ended mutual funds Growth Feb 23, 2010 10 42.99 as on Jan 30, 2012

Fund Manager SIP STP SWP Expense ratio(%) Portfolio Turnover Ratio(%)

Ajay Bodke .

2.43 55

Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load

NA 500 Daily Daily Entry Load is 0%. Exit Load is 0%.

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RETURNS
Scheme Performance (%) as on FEB 20, 2012 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Since Inception -2.18 4.24 -34.21 -49.62 NA NA -17.22

RISK
Mean Standard Deviation Sharpe Beta -0.27 0.81 -1.28 5.06

Treynor Sortino Correlation Fama

-1.70 -0.43 0.81 -0.18

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PORTFOLIO

PORTFOLIO ATTRIBUTES

STYLE BOX

P/E

15.90 as on Dec 2011

P/B

3.98 as on Dec 2011

Dividend Yield

1.53 as on Dec 2011

Market Cap (Rs. 61,425.07 as on in crores) Large Dec - 2011 70.60 as on Jan2012 Mid 14.57 as on Jan 2012 Small Top (%) No. of Stocks Expense (%) 5 NA Holding 30.39 as on Jan 2012 23

Ratio 2.43

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TOP 10 HOLDINGS
Stock Sector P/E Percen tage of Net Assets Reliance Industries Ltd Oil & Gas, Petroleum & 13.33 Refinery 9.13 6.87 25,640 2.95 -10.73 7.95 25,806 3.42 Qty Value Percentage of Change last

with month 7.51

State Bank of Banks India HDFC Ltd Exide Industries Auto & Auto ancilliaries Ltd Hindustan Petroleum Corporation Ltd Hindustan Unilever Ltd NTPC Limited. Power Diversified Bank Banks

18.86

6.17

28,660

2.65

-7.38

11.48

4.86

513,460 2.09

-15.70

Oil & Gas, Petroleum & -0.47 Refinery

4.56

68,500

1.96

4.87

27.23

4.46

73,202

1.92

4.79

Generation, 21.04

4.42

100,245 1.90

4.95

Transmission & Equip Larsen & Engineering Industrial Machinery Computers - Software & Education 14.05 3.82 12,558 1.64 17.08 & 15.93 3.90 24,308 1.68 48.63

Toubro Limited Infosys Technologies Ltd Bharat

Heavy Electricals & Electrical Equipments

22.36

3.79

12,350

1.63

-3.14

Electricals Ltd

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SECTOR ALLOCATION
Auto & Auto ancilliaries Banks Cement Computers - Software & Education Current Assets Diversified Electricals & Electrical Equipments Engineering & Industrial Machinery Finance Miscellaneous Oil & Gas, Petroleum & Refinery Packaging Pharmaceuticals Plastic Power Generation, Transmission & Equip Steel Telecom 7.92 14.97 2.59 3.82 14.39 4.46 3.79 6.73 5.75 0.45 15.61 2.60 3.72 1.69 4.42 3.34 3.74

70

Power Generation, Transmission & Equip 4% Plastic 2% Pharmaceuticals 4% Packaging 3%

Steel 3%

Telecom 4%

Auto & Auto ancilliaries 8%

Banks 15%

Oil & Gas, Petroleum & Refinery 16% Current Assets 14% Miscellaneous 0% Finance 6% Engineering & Industrial Machinery 7%

Cement 3% Computers Software & Education 4%

Diversified 4%

Electricals & Electrical Equipments 4%

ASSET ALLOCATION
mutual funds 85.61 Debt 0.00 Cash & Equivalent 14.39

INTERPRETATION
ATS Tax Saver (ATSTS) Scheme is a ten year old equity linked savings scheme. It is a scheme formulated under the mutual funds Linked Savings Scheme, 2008, issued by the Indian Central Government. Accordingly, investment made by individuals, HUFs and / or specified category of BOI / AOPs (as per ATSTS notification) in the Scheme up to a sum of Rs. 100,000 in a financial year would qualify for deduction under Section 80-C of the

71

Act.Investors other than these specified investors shall not qualify for the tax benefit as mentioned under Section 80-C of the Income Tax Act. The investment objective of the Scheme is to seek to generate long-term capital growth from a diversified mutual funds of predominantly equity and equity-related securities. In accordance with ATSTS, investments in equity and equity related instruments shall be to the extent of at least 80% of net assets of the Scheme.Investments in the scheme shall be locked in for a period of 3 years from the date of allotment.

HOW TO REDEEM?
Units can be redeemed / switched out only after the expiry of lock-in period of three years. Thereafter the Units can be redeemed (i.e., sold back to the Fund), at the Applicable NAV (hereinafter defined) on relevant business days. Repurchase facility is available on all business days on completion of lock in period of 3 years from the date of allotment.The lock in period may be changed prospectively if so permitted by the applicable regulations (SEBI Regulations and the ATSTS guidelines). A Unit holder may request redemption of a specified amount or a specified number of Units, (subject to the minimum redemption amount which is presently in multiples of Rs. 500/-) the number of Units specified will be considered for deciding the redemption amount.

OBJECTIVE
The investment objective of the Scheme is to seek to generate long-term capital growth from a diversified mutual funds of predominantly equity and equity-related securities.

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SUGESSTION 1. The Mutual Funds Manager has to spend more on advertisement and other promotional activities to create awareness among the public 2. The Mutual Funds Manager has to introduce some new schemes and offers in the market to increase the sale of Mutual Funds. 3. The equity fund is very high risky, so during the depressed economy they should inform to investors and put them in some other schemes which give them reasonable returns. 4. The Mutual Funds booklet should have to issue to each investor, in order to get a clear cut idea about Mutual Funds. 5. It has to maintain better services to capture the market.

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CONCLUSION

The Mutual Fund there by collects money or funds from a group of people with similar investment goals. The Mutual Fund scheme is well known to a good percentage of population.

The advertisement has become an effective tool to wake public awareness. The switching off from the Mutual Funds is very Low. The investment Manager has to guide the investors to choose the correct Mutual Funds, which they prefer.

Furthermore, to conclude we can say that mutual fund is a very much profitable tool for investment because of its low cost of acquiring fund, tax benefit, and diversification of profits & reduction of risk.

Many investors who have invested in mutual fund have invested with ATS and them also thinks that it provides better returns. Finally, to conclude we can say mutual fund is a best investment vehicle for old & widow, as well as to those who want regular returns on their investment. Mutual fund is also better and preferable for those who want their capital appreciation.

Both the companies are doing considerable achievements in mutual fund industry. There are also so many competitors involved those affect the company.

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S.NO NAME AUTHOR 1 Alexander.

OF

THE TITTLE THE BOOK

OF PLACE PUBLISHERS

OF EDITION 3RD Ed South 9th Ed 3RD Ed.

YEAR

G.j,

Sharpe, Fundamentals of PHI 3RD Ed. Investments Investment Introduction an Thomson Western 9th Ed. TMH of

2010

W.F and Bailey 2 Herbert.B.Mayo,

2010

Prasanna Chandra

Investment Analysis Portfolio Management

2010

V.K. BHALLA

Investment Management: Security Analysis & Portfolio

S. Chand & Company Limited, 2008

1st Ed

2010

Management 5 S. Kevin Analysis Portfolio Management and PHI 2nd Ed 2009

S.NO 1 2 3 4 5 6 7 8 9

WEBSITES http://www.valueresearchonline.com/funds/amclist.asp www.adityatrading.in http://www.moneycontrol.com/mf/returns.php http://www.investopedia.com/articles/mutualfund/ http://finance.indiamart.com/india_business_information/mutual_funds_concept.html http://finance.indiamart.com/india_business_information/drawbacks_of_mutual_funds.in http://sify.com/finance/mf/moreheadlines.php?ctid=2&cid=20803 www.mutualfundsindia.com www.sify.com/finance

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