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SUMMER TRAINING REPORT ON

"CONSUMER BEHAVIOUR ABOUT MUTUAL FUND IN


KARVY"

Submitted in Partial Fulfillment in Award of Degree


of BBA
UNDER THE GUIDANCE OF :
Faculty Guide

Industrial Guide

Submitted By:

ACKNOWLEDGEMENT
I would like to take this opportunity to express my deep gratitude to all
those who, directly or indirectly made this project possible.I have got
considerable help and support in making this project report a reality from
many people.
I would like to thank Mr. Sandeep Srivastava whose endeavor
for

perfection,

under

fatigable

zeal,

innovation

and

dynamism

contributed in a big way in completing this project. This work is the


reflection of his thought, ideas, concept and above all his modest effort.
At last, I would like to thank my parents, friends and colleagues, who
have been a constant source of help and encouragement.

EXECUTIVE SUMMARY
This project is completely based on market research of paint. Under this
research, we have taken 100 sample sizes of which 100 questionnaires
belong to 6 companies like Karvy, UTI, Birl, Birla, HDFC, Reliance, ICICI
Pru. We have taken only one brand mutual fund of these 6 Companies.
In spite of research we have analyzed the brand (mutual fund) in
numerical nature. On the basis of that we have assessed the strong
brand and weak brand out of five brands.

Then after we have

formulated the strategy of each brand in which we have told about


grabbing the market on the basis of:Quality product rendered to customer.
To attain customer satisfaction
To reduce the price of brand so sales can be boost up.
To advertise their product which is socially accepted?
To advertise their product through prominent celebrity.

On basis of weak brand, we have given recommendation in which we


mentioned how to strengthen the weak brand. This is the precise study
of project.

CONTENT
1. INTRODUCTION
2. MUTUAL FUNDS
3. MAJOR PLAYERS
4. RESEARCH METHODOLOGY
5. CONCLUSION
6. SUGGESTION
7. LIMITATION
8. BIBLIOGRAPHY
9. ANNEXURE

INTRODUCTION
MUTUAL FUND
A Mutual Fund is a body corporate registered with SEBI (Securities
Exchange Board of India) that pools money from individuals/corporate
investors and invests the same in a variety of different financial
instruments or securities such as equity shares, Government securities,
Bonds, debentures etc.Mutual funds can thus be considered as financial
intermediaries in the investment business that collect funds from the
public and invest on behalf of the investors. Mutual funds issue units to
the investors.The appreciation of the portfolio or securities in which the
mutual fund has invested the money leads to an appreciation in the value
of the units held by investors.The investment objectives outlined by a
Mutual Fund in its prospectus are binding on the Mutual Fund scheme.
The investment objectives specify the class of securities a Mutual Fund
can invest in. Mutual Funds invest in various asset classes like equity,
bonds, debentures, commercial paper and government securities. The
schemes offered by mutual funds vary from fund to fund. Some are pure
equity schemes; others are a mix of equity and bonds. Investors are also
6

given the option of getting dividends, which are declared periodically by


the mutual fund, or to participate only in the capital appreciation of the
scheme.

Evolution of Mutual Fund


The first investment trust (now called mutual fund) began in the Netherlands
in the early 1800s. The first in the U.S. was the New York Stock Trust, which
started in 1889. Since Boston was the economic center of the nation until
the turn of the century, the majority of funds started thereFidelity, Pioneer
and Putnum Fund, to name a few. A fund that was comprised of both stocks
and bonds (the Wellington Fund) started in 1928 and is still part of
Vanguard. As the 20's crashed to a close, there were 10 mutual funds in the
nation.
The Sixties saw the growth in aggressive (high risk) funds that were labeled,
in the vernacular of the times, "hot-shot" or "go-go" funds. They were sexy
and fast, there were a hundred of them by the late Sixties and a lot of
people dumped a lot of money in them until the bearish times of 1969
freaked everybody out: investors yanked out their money and have been

kicking themselves ever since, because some funds increased in value by


more than 9,000%.
Until this time, people had been paying sales commissions on their funds. In
the '70s, no-load funds were invented, and the biggest today. Vanguard
Funds, wasfounded in 1977. At the end of the Sixties, there were nearly 250
different mutual funds;today, they number over 6,000. But here's the thing:
the last time a mutual fund went bankrupt was 1940. And mutual funds often
outperform the stock market.
Benefits involved in investing Mutual Fund
There are several benefits from investing in a Mutual Fund:

Small investments
Mutual funds help you to reap the benefit of returns by a portfolio spread
across a wide spectrum of companies with small investments.

Professional Fund Management


Professionals having considerable expertise, experience and resources
manage the pool ofmoney collected by a mutual fund. They thoroughly
analyse themarkets and economy to pick good investment opportunities.
8

Spreading Risk
An investor with limited funds might be able to invest in only one or two
stocks/bonds, thus increasing his or her risk. However, a mutual fund will
spread its risk by investing a number of sound stocks or bonds. A fund
normally invests in companies across a wide range of industries, so the risk
is diversified.
Transparency
Mutual Funds regularly provide investors with information on the value of
their investments. Mutual Funds also provide complete portfolio disclosure
of the investments made by various schemes and also the proportion
invested in each asset type.

Choice
The large amount of Mutual Funds offer the investor a wide variety to
choose from. An investor can pick up a scheme depending upon his risk/
return profile.
Regulations
All the mutual funds are registered with SEBI and theyfunction within the
provisions of strict regulation designed to protect the interests of the
investor.
9

10

11

TYPES OF MUTUAL FUNDS


Mutual funds are classified in the following manner:
(a) On the basis of Objective
Equity Funds/ Growth Funds
Funds that invest in equity shares are called equity funds. They carry the
principal objective of capital appreciation of the investment over the
medium to long-term. They are best suited for investors who are seeking
capital appreciation. There are different types of equity funds such as
Diversified funds, Sector specific funds and Index based funds.
Diversified funds
These funds invest in companies spread across sectors. These funds
are generally meant for risk-averse investors who want a diversified
portfolio across sectors.
Sector funds
These funds invest primarily in equity shares of companies in a
particular business sector or industry. These funds are targeted at
investors who are bullish or fancy the prospects of
a particular sector.

12

Index funds
These funds invest in the same pattern as popular market indices like
S&P CNX Nifty or CNX Midcap 200. The money collected from the
investors is invested only in the stocks, which represent the index. For
e.g. a Nifty index fund will invest only in the Nifty 50 stocks.
The objective of such funds is not to beat the market but to give a return
equivalent to the market returns.
Tax Saving Funds
These funds offer tax benefits to investors under the Income Tax Act.
Opportunities provided under this scheme are in the form of tax rebates
under the Income Tax act.

Debt/Income Funds
These funds invest predominantly in high-rated fixed-income-bearing
instruments like bonds, debentures, government securities, commercial
paper and other money market instruments. They are best suited for the
medium to long-term investors who are averse to risk and seek capital
preservation. They provide a regular income to the investor.

Liquid Funds/Money Market Funds


13

These funds invest in highly liquid money market instruments. The


period of investment could be as short as a day. They provide easy
liquidity. They have emerged as an alternative for savings and shortterm
fixed deposit accounts with comparatively higher returns. These funds
are ideal for corporates,institutional investors and business houses that
invest their funds for very short periods.

Gilt Funds
These funds invest in Central and State Government securities. Since
they are Government backed bonds they give a secured return and also
ensure safety of the principal amount. They are best suited for the
medium to long-term investors who are averse to risk.

Balanced Funds
These funds invest both in equity shares and fixed-income-bearing
instruments (debt) in some proportion. They provide a steady return and
reduce the volatility of the fund while providing some upside for capital
appreciation. They are ideal for medium to long-term investors who are
willing to take moderate risks.

14

b) On the basis of Flexibility


Open-ended Funds
These funds do not have a fixed date of redemption. Generally they are
open for subscription and redemption throughout the year. Their prices
are linked to the daily net asset value (NAV). From the investors'
perspective, they are much more liquid than closed-ended funds.

Close-ended Funds
These funds are open initially for entry during the Initial Public Offering
(IPO) and thereafter closed for entry as well as exit. These funds have a
fixed date of redemption. One of the characteristics of the close-ended
schemes is that they are generally traded at a discount to NAV; but the
discount narrows as maturity nears. These funds are open for
subscription only once and can be redeemed only on the fixed date of
redemption. The units of these funds are listed on stock exchanges (with
certain exceptions), are tradable and the subscribers to the fund would
be able to exit from the fund at any time through the secondary market.
Different investment plans that Mutual Funds offer
The term investment plans generally refers to the services that the
funds provide to investors offering different ways to invest or
15

reinvest.The different investment plans are an important consideration in


the investment decision, because they determine the flexibility available
to the investor. Some of the investment plans offered by mutual funds in
India are:

16

Growth Plan and Dividend Plan


A growth plan is a plan under a scheme wherein the returns from
investments are reinvested and very few income distributions, if any, are
made. The investor thus only realizes capital appreciation on the
investment. Under the dividend plan, income is distributed from time to
time. This plan is ideal to those investors requiring regular income.
Dividend Reinvestment Plan
Dividend plans of schemes carry an additional option for reinvestment of
income distribution. This is referred to as the dividend reinvestment plan.
Under this plan, dividends declared by a fund are reinvested in the
scheme on behalf of the investor, thus increasing the number of units
held by the investors.

Rights that are available to a Mutual Fund holder in India


As per SEBI Regulations on Mutual Funds, an investor is entitled
to:
1. Receive Unit certificates or statements of accounts confirming your
title within 6 weeks from the date your request for a unit certificate is
received by the Mutual Fund.

17

2. Receive information about the investment policies, investment


objectives, financial position and general affairs of the scheme.
3. Receive dividend within 42 days of their declaration and receive the
redemption or repurchase proceeds within 10 days from the date of
redemption or repurchase.
4. The trustees shall be bound to make such disclosures to the unit
holders as are essential in order to keep them informed about any
information, which may have an adverse bearing on their investments.
5. 75% of the unit holders with the prior approval of SEBI can terminate
the AMC of the fund.
6. 75% of the unit holders can pass a resolution to wind-up the scheme.
7. An investor can send complaints to SEBI, who will take up the matter
with the concerned Mutual Funds and follow up with them till they are
resolved.

18

ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the
organisational set up of a mutual fund:

Mutual funds have a typical organisation in which five key parlies or


players or special bodies or constituents are involved. They are:
The sponsors, the Board of Trustees (EOT) or Trust Company
(TC)
The Asset Management Company (AMC)
The custodian, and
19

The unit-holders
They are usually formed by an investment adviser or manager or
sponsor who selects and appoints a BOT, which, in turn, hires or
contracts a separate AMC which is run by professional managers.
The AMC conducts the necessary research, and based on it,
manages the fund or portfolio. It is responsible for floating, managing,
redeeming the schemes; it also handles the administrative chores. It
receives the fees for the services rendered by it. The custodian is
responsible far coordination with brokers, the actual transfer and
storage of stocks, and handling the property of the trust. He is
answerable to the AMC.As per the current regulations in force in
India, every MF proposed by a sponsor has to be setup as a trust
under the Indian Trust Act, 1882 (and not as a company under the
Companies Act, 1956). The UT1, however, was set up under a
special UTI Act, 1963. All MFs have to be registered with the SEBI. It
is required that the first four constituents of the MF should maintain
an arm's length relationship among themselves in order to reduce
conflict of interests, and to safeguard the interests of the
investors.Mutual funds can sell their units directly to the investors or
they may employ the sales forced brokers and agents for that
20

purpose. Some MFs in the US charge their investors a sales fee for
the costs involved in selling the fund, and they are known as "load
funds". Those who do not charge, such a fee arc known as "no-load
funds". All funds charge their shareholders a management fee which
is paid out of the fund's income.
Sponser
The sponsor is the promoter of the mutual fund. He sponsor
establishes the mutual fund
Sponsor appoints the trustees .custodians and the AMC with prior
approval

of

SEB1,and

in

and

registers

the

same

with

SEB1.accordance with regualation.


Sponsor must have at least 5 years track record of business
interest in the financial markets,
Sponsor must have been profit making in at least 3 of the above 5
years Sponsor must contribute at least 40% of the capital of the AMC.

21

Trustee
The mutual fund, which is a trust,is managed either by a trust
companies or a board of trustees and governed by the provisions of
the Indian Trust Act. The AMC and other functionaries are functially
accountable to trustees.
The sponsor executes and registers a trust deed in favour of the
trustees .the third schedule of SEB1 regulation specifies the
contents of the trust deed.
The appointment of all trustees has to be done with prior approval
of SEB1
There must be at least 4 members in the board of trustees must be
independent.
Trustees of one mutual fund cannot be trustees of another mutual
fund, unless he is an independent trustees in both cases, and has
the approval of both the boards.
Asset Management Company
The trustees on the advise of the sponsors, usually appoint the AMC.
The AMC has to be SEB1 registered entity and should have a
22

minimum net worth management agreement with the AMC.which


spells out the functions of the AMC.
The following are various types of AMC's we have in India:
AMC's owned by banks.
AMC's owned by the Indian private sector companies
AMC's owned by the financial institutions.
AMC's owned by the foreign institution investors.
AMC's owned jointly by Indian and foreign sponsors.
AUDIT
Legal advisor advise mutual fund on regulatory and taxation issues.
Every mutual fund has an employee designated as compliance
officer, who works under the advise of the legal advisor. The AMC
aiso has its accounts and annual reports, these two sets of accounts
are required to be statutory audited. SEB1 regulation stipulate that
auditors of the fund can not also be the auditors of the AMC- the two
sets of accounts have to be

23

audited by to separate auditing firms. audotors charge a fee from the


mutual fund for these services.
Transfer
As the fund stands ready to redeem the unit on any working day, the
transfer facility is found redundant. However, if a transferee becomes
a holder of scheme's units in an official capacity by operation of law
or is a scheduled bank/ financial institution upon enforcement of a
pledge, then the trustee shall subject to production of necessary
evidence, procide to affect the transfer, if the intended transferee is
otherwise in line with terms of the schemes -In case any
pledge/charge over the scheme's units is the registered with the
trustee, transfer will be affected in accordance with the procedure
outlined in the detailed offer document.
BANKERS
A Fund's activities involve dealing with money on a continuous basis
primarily with respects to buying and selling units, paying for
investment made, receiving the proceeds on sale of investment and
discharging its obligations towards operating expenses. A fund's
bankers therefore play.
24

HOW MUTUAL FUND WORKS


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

25

Regulatory Aspect
1) Investment in debt instrument should be only in rated debt instrument not
below investment grade rated by a credit rating agency authorized to carry
such activity under the act.
2) No mutual fund under all its scheme should own more than 10 % of any
companys paid up capital carrying voting rights.
3) Transfers of investment from one scheme to another in the same mutual fund
shall be allowed only if
a) Such transfers are done at the prevailing market price for quoted
instrument on spot basis.
b) The securities so transfers shall be in conformity with the investment
objective of the scheme to which such transfer has been made.
4) A scheme may invest in another scheme under the same AMC or any other
mutual fund without charging any fees, provided that aggregate interscheme
investment made by all scheme under the same management or in scheme
under the management of any other AMC shall not exceed five per cent of
the NAV of the mutual fund.

26

5) The initial issue expenses in respect of any scheme may not exceed six per
cent of the funds raised under the scheme.
6) Every mutual fund shall get the securities purchased or transferred in the
name of the mutual fund on account of the concerned scheme, wherever
investment are intended to be of long-term nature.
7) Pending deployment of funds of a scheme in securities in terms of
investment objectives of the scheme, a mutual fund can invest the funds of
the scheme in short term deposits of scheduled commercial banks.
8) Every mutual fund shall be 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 badla finance.

27

Who can invest in mutual funds in India?


The following people can invest in Mutual funds in India:

Residents including:

Resident Indian Individuals


Indian Companies
Indian Trusts / Charitable Institutions
Banks
Non-Banking Finance Companies
Insurance Companies
Provident funds
Non Residents including
Non Residents Indian
Other Corporate Bodies (OCBs)
Foreign Entities, viz.
Foreign Institutional Investors (FIIS) registered with SEBI.

28

Advantages of Investment in Mutual Fund


Mutual Funds offer several benefits to an investor that unmatched by the
other investment options. The major benefits are good post-tax returns and
reasonable safety, the other benefits in investing in Mutual Funds are

PROFESSIONAL MANAGEMENT:
Mutual Funds employ the services of experienced and skilled professionals
and dedicated investment research team. The whole team analyses the
performance and balance sheet of companies and selects them to achieve the
objectives of the scheme.

POTENTIAL RETURN:
Mutual Funds have the potential to provide a higher return to an investor
than any other option over a reasonable period of time.

DIVERSIFICATION:
Mutual Funds invest in a number of companies across a wide cross section
of industries and sectors.

LIQUIDITY:
The investor can get the money promptly at the net asset value related prices
from the Mutual Funds open-ended schemes. In close-ended schemes, the
units can be sold on a stock exchange at the prevailing market price.
29

TRANSPARENCY:
Mutual Funds have to disclose their holdings, investment pattern and the
necessary information before all investors under a regulation framework.

FLEXIBILITY:
Investment in Mutual Funds offers a lot of flexibility with features of
schemes such as regular investment plan, regular withdrawal plans and
dividend reinvestment plans enabling systematic investment or withdrawal
of funds.

AFFORDABILITY:
Small investors with low investment fund are unable to high-grade or blue
chip stocks. An investor through Mutual Funds can be benefited from a
portfolio including of high priced stock..

WELL REGULATED:
All Mutual Funds are registered with SEBI, and SEBI acts a watchdog, so
the Mutual Funds are well regulated

30

Disadvantages of Mutual Funds


FLUCTUATING RETURNS:
Mutual funds are like many other investments without a guaranteed return.
There is always the possibility that the value of your mutual fund will
depreciate. Unlike fixed-income products, such as bonds and Treasury bills,
mutual funds experience price fluctuations along with the stocks that make
up the fund.

DIVERSIFICATION:
Although diversification is one of the keys to successful investing, many
mutual fund investors tend to over diversify. The idea of diversification is to
reduce the risks associated with holding a single security; over
diversification (also known as diworsification) occurs when investors
acquire many funds that are highly related and so don't get the risk reducing
benefits of diversification.

CASH, CASH AND MORE CASH:


Mutual funds pool money from thousands of investors, so everyday
investors are putting money into the fund as well as withdrawing
investments. To maintain liquidity and the capacity to accommodate
withdrawals, funds typically have to keep a large portion of their portfolio as
31

cash. Having ample cash is great for liquidity, but money sitting around as
cash is not working for you and thus is not very advantageous.

COSTS:
In mutual funds the fees are classified into two categories: shareholder fees
and annual fund-operating fees.
The shareholder fees, in the forms of loads and redemption fees are paid
directly by shareholders purchasing or selling the funds. The annual fund
operating fees are charged as an annual percentage - usually ranging from 13%. These fees are assessed to mutual fund investors regardless of the
performance of the fund. When the fund doesn't make money these fees only
magnify losses.

MISLEADING ADVERTISEMENTS:
The misleading advertisements of different funds can guide investors down
the wrong path. Some funds may be incorrectly labeled as growth funds,
while others are classified as small-cap or income.

EVALUATING FUNDS:
Another disadvantage of mutual funds is the difficulty they pose for
investors interested in researching and evaluating the different funds. Unlike
stocks, mutual funds do not offer investors the opportunity to compare the
P/E ratio, sales growth, earnings per share, etc.
32

TAX ASPECT OF MUTUAL FUND


DIVIDEND MADE TAX-FREE
Dividend received from a domestic company and income distributed
by UTI-I or any MF, to its unit holders has been made tax-free from
1.4.03 onwards. However, dividend declared, distributed or paid by
such sources shall be charged a distribution tax of @16.995% flat.
This distribution tax is in addition to the normal income tax payable by
them.

CAPITAL GAIN TAX:

Capital gains are generated through the sale of stocks, bonds and
other investments, which have appreciated in value, from the funds
portfolio. There are no capital grain tax on MF and stock market.
While STCG are subject to Tax@10% even traded through stock
exchange and security from action tax has been paid. Unquated
shares/

MF

are

subject

to

tax

at

normal

rate

of

tax.

33

INCOME RECEIVED FROM MUTUAL FUND:


The Internal Revenue Service might depend upon the nature of your
mutual fund investment. Generally, most income generated from a
mutual fund account, with the exception of tax-exempt money market
or municipal bond funds, is subject to federal taxes as ordinary
income or capital gains
WEALTH TAX:
Under sec 2(1)(e) of Wealth tax Act it is not treated as an asset.
Therefore this is exempted from tax liability.
GIFT TAX:
Mutual Fund may be given as a gift and no tax is applicable by doner
or donee
TDS ON REDEMPTION:
No TDS is required to be deducted from capital gain at the time of
redemption in case of mutual fund.
TAX BENEFITS ON INVESTMENT IN MUTUAL FUND:
(1)100% Income Tax Exemption on all Mutual Fund dividends.
(2)Capital Gains tax to be lower of
10% on the capital gains without factoring indexation benefits and
20% on the capital gains after factoring indexation benefits.
34

(3)Open-end funds with equity exposure of more than 50% are


exempt of dividend tax for a period of 3 years from 1999-2000.
Another Investment Avenue featuring in the list of eligible
instruments is the Equity Linked Saving Scheme or tax saving funds.
Simply put, these are mutual fund schemes wherein investment upto
Rs 100,000 qualify for Section 80 benefits. Investors are given the
unique opportunity to invest in an equity-linked product and still claim
tax benefits on the same; which is quite a departure from
conventional tax saving instruments. Tax saving funds have a
mandatory 3-Yr lock in period, which distinguishes them from
conventional equity-oriented funds, which have no constraints on
liquidity.

35

Tax saving funds: Smart long-term performers!


Tax Saving Funds
NAV (Rs) 1-Yr
HDFC LONG TERM
46.63
41.52%
ADV.

3-Yr

5-Yr

SD

68.36%

6.17%

BIRLA

55.01%

35.50

19.55%

SR
0.76
%
0.62

12.10% 7.23%
%
0.64

UTI

32.45

47.12%

51.95%

0.13%

7.96%
%
0.59

PRU ICICI TAX

41.91

30.89%

51.93%

15.76% 7.93%
%
0.78

HDFC TAX SAVER

61.15

42.46%

51.40%

5.72%
%

(Source: Credence Analytics. NAV data as on 2007 fsys trwuitr.


Growth

over

1-Yr

is

compounded

annualized)

(The Sharpe Ratio is a measure of the returns offered by the


fund vis--vis those offered by a risk-free instrument) (Standard
deviation highlights the element of risk associated with the
fund.)

36

MUTUAL FUNDS IN INDIA

37

SIX AMCS IN MUTUAL FUNDS


KARVY

UTI MUTUL FUND

BIRLA MUTUL FUND

HDFC MUTUL FUND

RELIANCE MUTUL FUND

ICICI PRU. MUTUL FUND

38

OVERVIEW
KARVY, is a premier integrated financial services provider, and
ranked among the top five in the country in all its business segments,
services over 20 million individual investors in various capacities, and
provides investor services to over 300 corporates, comprising the
who's who of Corporate India. KARVY covers the entire spectrum of
financial services such as Stock broking, Depository Participants,
Distribution of financial products like mutual funds, bonds, fixed
deposit, Merchant Banking & Corporate Finance, Insurance Broking,
Commodities Broking, Realty Services, Personal Finance Advisory
Services, placement of equity, IPOs, among others. Karvy has a
professional management team and ranks among the best in
technology, operations, and more importantly, in research of various
industrial segments.

39

Karvy Early Days


The birth of Karvy was on a modest scale in 1981. It began with the
vision and enterprise of a small group of practicing Chartered
Accountants who founded the flagship company Karvy Consultants
Limited. We started with consulting and financial accounting
automation, and carved inroads into the field of registry and share
accounting by 1985. Since then, we have utilized our experience and
superlative expertise to go from strength to strengthto better our
services, to provide new ones, to innovate, diversify and in the
process, evolved Karvy as one of Indias premier integrated financial
service enterprise.
Thus over the last 20 years Karvy has traveled the success route,
towards building a reputation as an integrated financial services
provider, offering a wide spectrum of services. And we have made
this journey by taking the route of quality service, path breaking
innovations in service, versatility in service and finallytotality in
service.
Our

highly

qualified

manpower,

cutting-edge

technology,
40

comprehensive infrastructure and total customer-focus has secured


for us the position of an emerging financial services giant enjoying the
confidence and support of an enviable clientele across diverse fields
in the financial world.
Our values and vision of attaining total competence in our servicing
has served as the building block for creating a great financial
enterprise, which stands solid on our fortresses of financial strength our various companies.
With the experience of years of holistic financial servicing behind us
and years of complete expertise in the industry to look forward to, we
have now emerged as a premier integrated financial services
provider.
And today, we can look with pride at the fruits of our mastery and
experience comprehensive financial services that are competently
segregated to service and manage a diverse range of customer
requirements.

41

The Karvy Credo


Our Clients. Our Focus
Clients are the reason for our being.
Personalized service, professional care; pro-activeness are the
values that help us nurture enduring relationships with our clients.

espect for the individual


Each and every individual is an essential building block of our
organization.
We are the kiln that hones individuals to perfection. Be they our
employees, shareholders or investors. We do so by upholding their
dignity & pride, inculcating trust and achieving a sensitive balance of
heir professional and personal lives.
Teamwork
None of us is more important than all of us.

42

Each team member is the face of Karvy. Together we offer diverse


services with speed, accuracy and quality to deliver only one product:
excellence.

Transparency,

co-operation,

invaluable

individual

contributions for a collective goal, and respecting individual


uniqueness within a corporate whole, is how we deliver again and
again.
Responsible Citizenship
A social balance sheet is as rewarding as a business one.
As a responsible corporate citizen, our duty is to foster a better
environment in the society where we live and work. Abiding by its
norms, and behaving responsibly towards the environment, are some
of our growing initiatives towards realizing it.
Integrity
Everything else is secondary.
Professional and personal ethics are our bedrock. We take pride in
an environment that encourages honesty and the opportunity to learn
from failures than camouflage them. We insist on consistency
between works and actions.
43

KARVY CONSULTANTS LIMITED

As the flagship company of the Karvy Group, Karvy Consultants


Limited has always remained at the helm of organizational affairs,
pioneering business policies, work ethic and channels of progress.
Having emerged as a leader in the registry business, the first of the
businesses that we ventured into, we have now transferred this
business into a joint venture with Computershare Limited of Australia,
the worlds largest registrar. With the advent of depositories in the
Indian capital market and the relationships that we have created in
the registry business, we believe that we were best positioned to
venture into this activity as a Depository Participant. We were one of
the early entrants registered as Depository Participant with NSDL
(National Securities Depository Limited), the first Depository in the
country and then with CDSL (Central Depository Services Limited).
Today, we service over 6 lakhs customer accounts in this business
spread across over 250 cities/towns in India and are ranked amongst
the largest Depository Participants in the country. With a growing
secondary market presence, we have transferred this business to
44

Karvy Stock Broking Limited (KSBL), our associate and a member of


NSE, BSE and HSE.
IT enabled services
Our Technology Services division forms the ideal platform to unleash
our technology initiatives and make our presence felt on the Internet.
Our past achievements include many quality websites designed,
developed and deployed by us. We also possess our own web
hosting facilities with dedicated bandwidth and a state-of-the-art
server farm (data center) with services functioning on a variety of
operating platforms such as Windows, Solaris, Linux and Unix.

The corporate website of the company, www.karvy.com, gives


access to in-depth information on financial matters including Mutual
Funds, IPOs, Fixed Income Schemes, Insurance, Stock Market and
much more. A link called Resource Center, devoted solely to
research conducted by our team of experts on various financial
aspects like Sector Research, deals exclusively with in-depth
analysis of the key sectors of the Indian economy. Besides, a host of
other links like My Portfolio which acts as a personalized and
45

customized financial measure, makes this site extremely informative


about investment options, market trends, news as also about our
company and each of the services offered here.

46

KARVY STOCK BROKING LIMITED

Stock Broking Services | Distribution of Financial Products |


Depository Participants | Advisory Services | Research | Private
Client Group
Member - Natio nal Stock Exchange (NSE), The Bombay Stock
Exchange (BSE), and The Hyderabad Stock Exchange (HSE).
Karvy Stock Broking Limited, one of the cornerstones of the Karvy
edifice, flows freely towards attaining diverse goals of the customer
through varied services. Creating a plethora of opportunities for the
customer by opening up investment vistas backed by research-based
advisory services. Here, growth knows no limits and success
recognizes no boundaries. Helping the customer create waves in his
portfolio and empowering the investor completely is the ultimate goal.

47

STOCK BROKING SERVICES

It is an undisputed fact that the stock market is unpredictable and yet


enjoys a high success rate as a wealth management and wealth
accumulation option. The difference between unpredictability and a
safety anchor in the market is provided by in-depth knowledge of
market functioning and changing trends, planning with foresight and
choosing one’s options with care. This is what we provide in
our Stock Broking services.
We offer services that are beyond just a medium for buying and
selling stocks and shares. Instead we provide services which are
multi dimensional and multi-focused in their scope. There are several
advantages in utilizing our Stock Broking services, which are the
reasons why it is one of the best in the country.

48

We offer trading on a vast platform ; National Stock Exchange,


Bombay Stock Exchange and Hyderabad Stock Exchange. More
importantly, we make trading safe to the maximum possible extent, by
accounting for several risk factors and planning accordingly. We are
assisted in this task by our in-depth research, constant feedback and
sound advisory facilities. Our highly skilled research team, comprising
of technical analysts as well as fundamental specialists, secure
result-oriented information on market trends, market analysis and
market predictions. This crucial information is given as a constant
feedback to our customers, through daily reports delivered thrice daily
; The Pre-session Report, where market scenario for the day is
predicted, The Mid-session Report, timed to arrive during lunch break
, where the market forecast for the rest of the day is given and The
Post-session Report, the final report for the day, where the market
and the report itself is reviewed. To add to this repository of
information, we publish a monthly magazine “Karvy ; The
Finapolis”, which analyzes the latest stock market trends and
takes a close look at the various investment options, and products
available in the market, while a weekly report, called “ Karvy
Bazaar Baatein”, keeps you more informed on the immediate
49

trends in the stock market. In addition, our specific industry reports


give comprehensive information on various industries. Besides this,
we also offer special portfolio analysis packages that provide daily
technical advice on scrips for successful portfolio management and
provide customized advisory services to help you make the right
financial moves that are specifically suited to your portfolio.
Our Stock Broking services are widely networked across India, with
the number of our trading terminals providing retail stock broking
facilities. Our services have increasingly offered customer oriented
convenience, which we provide to a spectrum of investors, highnetworth or otherwise, with equal dedication and competence.
But true to our spirit, this success is not our final destination, but just
a platform to launch further enhanced quality services to provide you
the latest in convenient, customer-friendly stock management.
Over the years we have ensured that the trust of our customers is our
biggest returns. Factors such as our success in the Electronic
custody business has helped build on our tradition of trust even more.
Consequentially our retail client base expanded very fast.

50

To empower the investor further we have made serious efforts to


ensure that our research calls are disseminated systematically to all
our stock broking clients through various delivery channels like email,
chat, SMS, phone calls etc.
Our foray into commodities broking has been path breaking and we
are in the process of converting existing traders in commodities into
the more organized mainstream of trading in commodity futures, both
as a trading and risk hedging mechanism.
In the future, our focus will be on the emerging businesses and to
meet this objective, we have enhanced our manpower and revitalized
our knowledge base with enhances focus on Futures and Options as
well as the commodities business.

51

Depository Participants

The onset of the technology revolution in financial services Industry


saw the emergence of Karvy as an electronic custodian registered
with National Securities Depository Ltd (NSDL) and Central
Securities Depository Ltd (CSDL) in 1998. Karvy set standards
enabling further comfort to the investor by promoting paperless
trading across the country and emerged as the top 3 Depository
Participants in the country in terms of customer serviced.
Offering a wide trading platform with a dual membership at both
NSDL and CDSL, we are a powerful medium for trading and
settlement of dematerialized shares. We have established live DPMs,
Internet access to accounts and an easier transaction process in
order to offer more convenience to individual and corporate investors.
A team of professional and the latest technological expertise
allocated exclusively to our demat division including technological
52

enhancements like SPEED-e, make our response time quick and our
delivery impeccable. A wide national network makes our efficiencies
accessible to all.

53

Distribution of Financial Products

The paradigm shift from pure selling to knowledge based selling


drives the business today. With our wide portfolio offerings, we
occupy all segments in the retail financial services industry.
A 1600 team of highly qualified and dedicated professionals drawn
from the best of academic and professional backgrounds are
committed to maintaining high levels of client service delivery. This
has propelled us to a position among the top distributors for equity
and debt issues with an estimated market share of 15% in terms of
applications mobilized, besides being established as the leading
procurer in all public issues.

54

To further tap the immense growth potential in the capital markets we


enhanced the scope of our retail brand, Karvy the Finapolis ,
thereby providing planning and advisory services to the mass
affluent. Here we understand the customer needs and lifestyle in the
context of present earnings and provide adequate advisory services
that will necessarily help in creating wealth. Judicious planning that is
customized to meet the future needs of the customer deliver a service
that is exemplary. The market-savvy and the ignorant investors, both
find this service very satisfactory. The edge that we have over
competition is our portfolio of offerings and our professional expertise.
The investment planning for each customer is done with an unbiased
attitude so that the service is truly customized.
Our

monthly magazine,

Finapolis,

provides

up-dated

market

information on market trends, investment options, opinions etc. Thus


empowering the investor to base every financial move on rational
thought and prudent analysis and embark on the path to wealth
creation.

55

Advisory Services

Under our retail brand Karvy the Finapolis', we deliver advisory


services to a cross-section of customers. The service is backed by a
team of dedicated and expert professionals with varied experience
and background in handling investment portfolios. They are
continually engaged in designing the right investment portfolio for
each

customer

according

to

individual

needs

and

budget

considerations with a comprehensive support system that focuses on


trading

customers'

portfolios

and

providing

valuable

inputs,

monitoring and managing the portfolio through varied technological


initiatives. This is made possible by the expertise we have gained in
the business over the years. Another venture towards being investorfriendly is the circulation of a monthly magazine called Karvy - the
Finapolis'. Covering the latest of market news, trends, investment
schemes and research-based opinions from experts in various
financial fields.
56

Private Client Group

This specialized division was set up to cater to the high net worth
individuals and institutional clients keeping in mind that they require a
different kind of financial planning and management that will augment
not just existing finances but their life-style as well. Here we follow a
hard-nosed business approach with the soft touch of dedicated
customer care and personalized attention.
For this purpose we offer a comprehensive and personalized service
that encompasses planning and protection of finances, planning of
business needs and retirement needs and a host of other services, all
provided on a one-to-one basis.
Our research reports have been widely appreciated by this segment.
The delivery and support modules have been fine tuned by giving our
clients access to online portfolio information, constant updates on
their portfolios as well as value-added advise on portfolio churning,
sector switches etc. The investment recommendations given by our
research team in the cash market has enjoyed a high success rate.
57

KARVY INVESTORS SERVICES LIMITED

Merchant Banking
Recognized as a leading merchant banker in the country, we are
registered with SEBI as a Category I merchant banker. This
reputation was built by capitalizing on opportunities in corporate
consolidations, mergers and acquisitions and corporate restructuring,
which have earned us the reputation of a merchant banker. Raising
resources for corporate or Government Undertaking successfully over
the past two decades have given us the confidence to renew our
focus in this sector.
Our quality professional team and our work-oriented dedication have
propelled us to offer value-added corporate financial services and act
as a professional navigator for long term growth of our clients, who
include leading corporates, State Governments, foreign institutional
investors, public and private sector companies and banks, in Indian
and global markets.

58

We have also emerged as a trailblazer in the arena of relationships,


both at the customer and trade levels because of our unshakable
integrity, seamless service and innovative solutions that are tuned to
meet varied needs. Our team of committed industry specialists,
having extensive experience in capital markets, further nurtures this
relationship.
Our financial advice and assistance in restructuring, divestitures,
acquisitions, de-mergers, spin-offs, joint ventures, privatization and
takeover defense mechanisms have elevated our relationship with
the client to one based on unshakable trust and confidence.

59

KARVY COMPUTERSHARE PVT LIMITED

Mutual Fund Services | Issue Registry | Corporate Shareholder


Services
We have traversed wide spaces to tie up with the worlds largest
transfer agent, the leading Australian company, Computershare
Limited.

The

company

that

services

more

than

75

million

shareholders across 7000 corporate clients and makes its presence


felt in over 12 countries across 5 continents has entered into a 50-50
joint venture with us.
With our management team completely transferred to this new entity,
we will aim to enrich the financial services industry than before. The
future holds new arenas of client servicing and contemporary and
relevant technologies as we are geared to deliver better value and
foster bigger investments in the business. The worldwide network of
Computershare will hold us in good stead as we expect to adopt
60

international standards in addition to leveraging the best of


technologies from around the world.
Excellence has to be the order of the day when two companies with
such similar ideologies of growth, vision and competence, get
together.

61

MUTUAL FUND SERVICES

We have attained a position of immense strength as a provider of


across-the-board transfer agency services to AMCs, Distributors and
Investors.
Nearly 40% of the top-notch AMCs including prestigious clients like
Deutsche AMC and UTI swear by the quality and range of services
that we offer. Besides providing the entire back office processing, we
provide the link between various Mutual Funds and the investor,
including services to the distributor, the prime channel in this
operation.
Carrying the limitless' ideology forward, we have explored new
dimensions in every aspect of Mutual Fund servicing right from
volume management, cost effective pricing, delivery in the least
turnaround time, efficient back-office and front-office operations to
customized service. We have been with the AMCs every step of the
62

way, helping them serve their investors better by offering them a


diverse and customized range of services. The first to market'
approach that is our anthem has earned us the reputation of an
innovative service provider with a visionary bent of mind.
Our service enhancements such as Karvy Converz', a full-fledged
call center, a top-line website (www.karvymfs.com), the m-investor'
and many more, creating a galaxy of customer advantages.
Issue Registry

In our voyage towards becoming the largest transaction-processing


house in the Indian Corporate segment, we have mobilized funds for
numerous corporate, Karvy has emerged as the largest transactionprocessing house for the Indian Corporate sector. With an experience
of handling over 700 issues, Karvy today, has the ability to execute
voluminous transactions and hard-core expertise in technology
applications have gained us the No.1 slot in the business. Karvy is

63

the first Registry Company to receive ISO 9002 certification in India


that stands testimony to its stature.
Karvy has the backing of skilled human resources complemented by
requisite technological packages to ensure a faster processing
capability. Karvy has the benefit of a good synergy between
depositories and registry that enables faster resolution to related
customer queries. Apart from its unique investor servicing presence in
all the phases of a public Issue, it is actively coordinating with both
the main depositories to develop special models to enable the
customer to access depository (NSDL, CDSL) services during an
IPO.
Our trust-worthy reputation, competent manpower and high-end
technology and infrastructure are the solid foundations on which our
success is built.

64

CORPORATE SHAREHOLDER SERVICES

Karvy has been a customer centric company since its inception.


Karvy offers a single platform servicing multiple financial instruments
in its bid to offer complete financial solutions to the varying needs of
both corporate and retail investors where an extensive range of
services are provided with great volume-management capability.
Today, Karvy is recognized as a company that can exceed customer
expectations which is the reason for the loyalty of customers towards
Karvy for all his financial needs. An opinion poll commissioned by
The Merchant Banker Update and conducted by the reputed market
research agency, MARG revealed that Karvy was considered the
Most Admired in the registrar category among financial services
companies.
We have grown from being a pure transaction processing business,
to one of complete shareholder solutions.
65

KARVY GLOBAL SERVICES LIMITED

The specialist Business Process Outsourcing unit of the Karvy Group.


The legacy of expertise and experience in financial services of the
Karvy Group serves us well as we enter the global arena with the
confidence of being able to deliver and deliver well.
Here we offer several delivery models on the understanding that
business needs are unique and therefore only a customized service
could possibly fit the bill. Our service matrix has permutations and
combinations that create several options to choose from.
Be it in re-engineering and managing processes or delivering new
efficiencies, our service meets up to the most stringent of
international standards. Our outsourcing models are designed for the
global customer and are backed by sound corporate and operations
philosophies,

and

domain

expertise.

Providing

productivity

improvements, operational cost control, cost savings, improved


accountability and a whole gamut of other advantages.
66

We operate in the core market segments that have emerging


requirements for specialized services. Our wide vertical market
coverage includes Banking, Financial and Insurance Services (BFIS),
Retail and Merchandising, Leisure and Entertainment, Energy and
Utility and Healthcare.
Our horizontal offerings do justice to our stance as a comprehensive
BPO unit and include a variety of services in Finance and Accounting
Outsourcing Operations, Human Resource Outsourcing Operations,
Research and Analytics Outsourcing Operations and Insurance Back
Office Outsourcing Operations

67

KARVY COMTRADE LIMITED

At Karvy Commodities, we are focused on taking commodities trading


to new dimensions of reliability and profitability. We have made
commodities trading, an essentially age-old practice, into a
sophisticated and scientific investment option.
Here we enable trade in all goods and products of agricultural and
mineral origin that include lucrative commodities like gold and silver
and popular items like oil, pulses and cotton through a wellsystematized trading platform.
Our technological and infrastructural strengths and especially our
street-smart skills make us an ideal broker. Our service matrix is
holistic with a gamut of advantages, the first and foremost being our
legacy of human resources, technology and infrastructure that comes
from being part of the Karvy Group.

68

Our wide national network, spanning the length and breadth of India,
further supports these advantages. Regular trading workshops and
seminars are conducted to hone trading strategies to perfection.
Every move made is a calculated one, based on reliable research
that is converted into valuable information through daily, weekly and
monthly newsletters, calls and intraday alerts. Further, personalized
service is provided here by a dedicated team committed to giving
hassle-free service while the brokerage rates offered are extremely
competitive.
Our commitment to excel in this sector stems from the immense
importance that commodities broking has to a cross-section of
investors – farmers, exporters, importers, manufacturers and
the Government of India itself.

69

KARVY INSURANCE BROKING PRIVATE LIMITED

At Karvy Insurance Broking Pvt. Ltd., we provide both life and non-life
insurance products to retail individuals, high net-worth clients and
corporates. With the opening up of the insurance sector and with a
large number of private players in the business, we are in a position
to provide tailor made policies for different segments of customers. In
our journey to emerge as a personal finance advisor, we will be better
positioned to leverage our relationships with the product providers
and place the requirements of our customers appropriately with the
product providers. With Indian markets seeing a sea change, both in
terms of investment pattern and attitude of investors, insurance is no
more seen as only a tax saving product but also as an investment
product. By setting up a separate entity, we would be positioned to
provide the best of the products available in this business to our
customers.
Our wide national network, spanning the length and breadth of India,
further supports these advantages. Further, personalized service is
provided here by a dedicated team committed in giving hassle-free
service to the clients.

70

KARVY REALTY & SERVICES (INDIA) LIMITED

KARVY Realty & Services (India) Limited (KRSIL) is engaged in the


business of real estate and property services offering value added
property services and offers individuals and establishments a myriad
of options across investments, financing and advisory services in the
realty sector.

71

KARVY CONSULTANTS LIMITED

Board of Directors
Mr. C Parthasarathy
Chairman

Mr. M Yugandhar
Managing Director

Mr. M S Ramakrishna
Director

72

Karvy Stock Broking Limited

Board of Directors
Mr. C Parthasarathy
Director
Mr. M Yugandhar
Director
Mr. M S Ramakrishna
Director
Mr. Akash Mehta
Director
Mr. Peter Wing Hung So
Director

73

Karvy Investors Services Limited

Board of Directors
Mr. C Parthasarathy
Managing Director
Mr. M Yugandhar
Director
Mr. M S Ramakrishna
Director

74

KARVY COMPUTERSHRE PRIVATE LIMITED

Board of Directors
William Stuart Crosby
Chairman

Mr. C Parthasarathy
Managing Director
Mr. M Yugandhar
Managing Director
Mr. M S Ramakrishna
Director
Chandra Balaraman
Director
James wong
Director

75

KARVY GLOBAL SERVICES LIMITED

Board of Directors
Mr. C Parthasarathy
Director
Mr. M Yugandhar
Director
Mr. M S Ramakrishna
Director

76

KARVY COMTRADE LIMITED

Board of Directors
Mr. C Parthasarathy
Chairman
Mr. M Yugandhar
Director
Mr. M S Ramakrishna
Director

77

KARVY INSURANCE BROKING PRIVATE LIMITED

Board of Directors
Mr. C Parthasarathy
Chairman

Mr. M Yugandhar
Director

Mr. M S Ramakrishna
Director

78

ACHIEVEMENTS

Among the top 5 stock brokers in India (4% of NSE volumes)


India's No. 1 Registrar & Securities Transfer Agents
Among the to top 3 Depository Participants
Largest Network of Branches & Business Associates
ISO 9002 certified operations by DNV
Among top 10 Investment bankers
Largest Distributor of Financial Products
Adjudged as one of the top 50 IT uses in India by MIS Asia
Full Fledged IT driven operations

79

UTI MUTUL FUND

Introduction
Vision
To be the most Preferred Mutual Fund.
Our mission is to make UTI Mutual Fund:
The most trusted brand, admired by all stakeholders
The largest and most efficient money manager with global
presence
The best in class customer service provider
The most preferred employer
The most innovative and best wealth creator
A socially responsible organisation known for best corporate
governance

80

Genesis
January 14, 2003 is when UTI Mutual Fund started to pave its path
following the vision of UTI Asset Management Co. Ltd. (UTIAMC),
which was appointed by UTI Trustee Co, Pvt. Ltd. for managing the
schemes of UTI Mutual Fund and the schemes transferred/migrated
from the erstwhile Unit Trust of India.
UTIAMC provides professionally managed back office support for all
business services of UTI Mutual Fund in accordance with the
provisions of the Investment Management Agreement, the Trust
Deed, the SEBI (Mutual Funds) Regulations and the objectives of
the schemes. State-of-the-art systems and communications are in
place to ensure a seamless flow across the various activities
undertaken by UTIMF.
Since February 3, 2004, UTIAMC is also a registered portfolio
manager under the SEBI (Portfolio Managers) Regulations, 1993 for
undertaking portfolio management services. UTIAMC also acts as
the manager and marketer to offshore funds through its 100 %
subsidiary, UTI International Limited, registered in Guernsey,
Channel Islands.
81

Assets Under Management


UTIAMC presently manages a corpus of over Rs. 67,978 Crores* as
on 30th June 2009 (source: www.amfiindia.com). UTI Mutual Fund
has a track record of managing a variety of schemes catering to the
needs of every class of citizens. It has a nationwide network
consisting 114 UTI Financial Centres (UFCs) and UTI International
offices in London, Dubai and Bahrain. With a view to reach to
common investors at district level, 1 satellite office have also been
opened.
UTIAMC has a well-qualified, professional fund management team,
which has been fully empowered to manage funds with greater
efficiency and accountability in the sole interest of the unit holders.
The fund managers are ably supported by a strong in-house
securities research department. To ensure investors interests, a risk
management department is also in operation.
Reliability
UTIMF has consistently reset and upgraded transparency standards.
All the branches, UFCs and registrar offices are connected on a
robust IT network to ensure cost-effective quick and efficient service.
82

All these have evolved UTIMF to position as a dynamic, responsive,


restructured, efficient and transparent entity, fully compliant with
SEBI regulations.

s received by UTI Mutual Fund


UTI MF CNBC Award 2009...more
UTI Mutual Fund sweeps ICRA mutual fund Award 2009...
UTI MF wins the Best Debt Fund House Award...
Golden Peacock Innovative Product/Service Award-2008...
Loyalty Awards - 2009 ...
Lipper Fund Awards09-UTI Mahila Unit-5 yrs...
Lipper Fund Awards09-UTI Mahila Unit-3 yrs...
Readers Digest Trusted Brand 2008...
Lipper Fund Awards - Gulf 2008...
Top Performing Infrastructure Fund - Income ...
Brand loyalty Awards 2008...
Four ICRA 7 Star Gold Award...

83

Four ICRA 5 Star Award...


ICRA Mutual Fund Award 2007...
Lipper Fund Awards 2007...
CRISIL-CNBC-TV18-Mutual Fund of the year Award 2007...
ICRA Mutual Fund Award 2006...
Lipper Fund Awards...
CNBC-TV18-BNP Par-ibas Mutual Fund of the year Award
2006...
CNBC-TV18-BNP Par-ibas Mutual Fund of the year
Award...
ICRA online Mutual Fund Award: UTI NIFTY INDEX FUND
won the award for the year 2004...
CNBC India Mutual Fund of the Year Award...
UTI Nifty Index Fund wins Gold at ICRA Online...
UTI Dynamic Equity Fund wins Silver at ICRA Online...
UTI Growth Value Fund has been ranked by CRISIL...

Investment Philosophy
84

UTI Mutual Funds investment philosophy is to deliver


consistent and stable returns in the medium to long term with
a fairly lower volatility of fund returns compared to the broad
market. It believes in having a balanced and well-diversified
portfolio for all the funds and a rigorous in-house research
based approach to all its investments. It is committed to adopt
and maintain good fund management practices and a process
based investment management.
UTI Mutual Fund follows an investment approach of giving as
equal

an

importance

to

asset

allocation

and

sectoral

allocation, as is given to security selection while managing


any fund. It combines top-down and bottom-up approaches to
enable the portfolios/funds to adapt to different market
conditions

so

as

to

prevent

missing

an

investment

opportunity.
In terms of its funds performance, UTI Mutual Fund aims to
consistently remain in the top quartile vis--vis the funds in
the peer group.

85

Mumbai
1st Feb 2003

86

Sponsors

Three leading public sector banks Bank of Baroda, Punjab National


Bank and State Bank of India and Life Insurance Corporation of India
(LIC), the largest public financial investment institution and life insurer
in India are the sponsors of UTI Mutual Fund.

Bank of Baroda:Bank of Baroda is a commercial bank performing activities in terms of


Banking Companies (Acquisition and Transfer of Undertakings Act
1970) under which the Undertaking of the Bank was taken over by
the Central Government. During the period since inception, it has
always maintained its practice of sound value based banking to
emerge as one of the premier public sector Banks of the country
today. It has a track record of uninterrupted profits since inception in
1908. The financial strength of the Bank and its long tradition of
efficient customer service are drawn substantially from the extensive
reach of its 2732 strong branch network (as of 31.03.2007) covering
almost every State and Union Territory in the Country. The Bank is
also one of the few Indian Banks with a formidable presence
87

overseas with 40 branches. Thus, the total branch network is 2,772


as at 31.03.2007.

Life Insurance Corporation of India


Life Insurance Corporation of India (LIC) is amongst the largest
insurance companies in the world, with 2048 branches and having a
Fund size of Rs.-5,60,806.33 crore.

Punjab National Bank


Punjab National Bank is a commercial bank performing activities in
terms of Banking Companies (Acquisition and Transfer of
Undertakings Act 1970) under which the Undertaking of the Bank was
taken over by the Central Government. The main object of the bank
under the said Act is as below:- An act to provide for the acquisition
and transfer of the undertaking of certain banking companies, having
regard to their size, resources coverage and organisation, in order to
further to control the heights of the economy, to meet progressively
and serve better, the needs of the development of the economy and
to promote the welfare of the people, in conformity with the policy of
the State towards securing the principles laid down in clause (b) and
88

(c) of Article 39 of the Constitution of India and for matter connected


therewith or incidental therein. As on 31.03.2007 Punjab National
Bank has 4539 domestic offices including 421 extension counters, 2
subsidiaries and a deposit size of Rs.1, 39,860 crores.

State Bank of India:


The State Bank of India is the largest public sector bank in India with
9517 branches in India and 83 offices in 32 countries worldwide. In
addition to this, SBI also has 21 subsidiaries.

The sponsors are not responsible nor liable for any loss resulting
from the operation of the scheme beyond the contribution of an
amount of Rs.10,000/- made by them towards setting up of the
Mutual Fund.

89

UTI Asset Management Co. Ltd. (UTIAMC) is a company incorporated


under The Companies Act, 1956.
UTIAMC was appointed as the Asset Management Company of the UTI
Mutual Fund in terms of the Investment Management Agreement
executed between UTI Trustee Co. Ltd. and UTIAMC on December 9,
2002.

UTIAMC was registered by SEBI to act as the asset

management company for UTI Mutual Fund vide its letter of January 14,
2003.
The paid up capital of UTIAMC has been subscribed equally by four
sponsors: State Bank of India, Life Insurance Corporation of India, Bank
of Baroda and Punjab National Bank. UTIAMC, apart from managing
the schemes of UTI Mutual Fund, also manages the schemes
transferred/migrated from the erstwhile Unit Trust of India, in
accordance with the provisions of the Investment Management
Agreement, the Trust Deed, the SEBI (Mutual Funds) Regulations and
the objectives of the schemes.

90

UTIAMC has also entered into a service agreement with the


Administrator of the Specified Undertaking of the Unit Trust of India
(SUUTI) to provide them with back office support for business
processes.
UTIAMC is also a registered Portfolio Manager under the SEBI
(Portfolio Managers) Regulations, 1993 since February 3, 2004 for
undertaking

portfolio

management

services.

Subsidiaries
UTI International Ltd. (UTIIL) is a 100% subsidiary of UTIAMC,
registered in Guernsey, Channel Islands, which acts as the manager to
offshore funds and markets these offshore funds abroad. Towards
expansion of its activities, UTIIL has signed a joint venture agreement
with Shinsei Bank Ltd. of Japan to set up UTI International (Singapore)
Pvt. Ltd.
UTIIL is focussed on investment management and distribution of
financial products in the South East Asian region. UTIIL also manages
funds investing in other jurisdictions.
UTI Retirement Solutions Ltd. (UTIRSL), is a 100% subsidiary of
UTIAMC which was incorporated in December, 2007 and started
91

operations w.e.f. March, 2008. UTIRSL has been set up to carry out the
operations as a Pension Fund Manager under the New Pension
System set up by Pension Fund Regulatory and Development Authority
(PFRDA).
UTIRSL was initially appointed by the NPS to manage the pension
funds of the government employees. In March, 2009, the Company has
also been appointed by NPS for management of pension funds for nongovernment employees.
Directors of UTIAMC
Shri U. K. Sinha
Chairman & Managing Director
UTIAMC Ltd.
UTI Tower, Gn Block
Bandra Kurla Complex
Bandra (East)
Mumbai - 400 051
Shri S. C. Bhargava
Non-Executive Chairman
OTC Exchange of India
Flat No.14, Queens Court
92

Maharshi Karve Road


Churchgate
Mumbai 400 020
Dr. K. C. Mishra
Director
National Insurance Academy
B2-32, Elite Empire
Balewadi
Pune - 411 045
Ms. Anita Ramachandran
Director & CEO
Cerebrus Consultants Pvt. Ltd.
13, Navroze Apartments
Bhulabhai Desai Road
Mumbai - 400 026
Shri Prithvi Haldea
Chairman & Managing Director
Praxis Consulting & Information
Services Pvt. Ltd.
C-101, Rishi Apartments

93

Alaknanda
New Delhi-110 019
Shri P. R. Khanna
Chartered Accountant
70, Sundar Nagar
New Delhi - 110 003

94

RELIANCE MUTUAL FUND

Reliance Mutual Fund (RMF) is one of Indias leading Mutual Funds,


with Assets Under Management (AUM) of Rs. 93,532 crore (AUM as
on 29th Feb 08) and an investor base of over 65.73 Lakhs. Reliance
Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is
one of the fastest growing mutual funds in the country. RMF offers
investors a well-rounded portfolio of products to meet varying investor
requirements and has presence in 115 cities across the country.
Reliance Mutual Fund constantly endeavors to launch innovative
products and customer service initiatives to increase value to
investors. "Reliance Mutual Fund schemes are managed by Reliance
Capital Asset Management Limited., a subsidiary of Reliance Capital
Limited, which holds 93.37% of the paid-up capital of RCAM, the
balance paid up capital being held by minority shareholders."Reliance
Capital Ltd. is one of Indias leading and fastest growing private
sector financial services companies, and ranks among the top 3
private sector financial services and banking companies, in terms of

95

net worth. Reliance Capital Ltd. has interests in asset management,


life and general insurance, private equity and proprietary investments,
stock broking and other financial services.
Vision Statement
To be a globally respected wealth creator with an emphasis on
customer care and a culture of good corporate governance.
Mission Statement
To create and nurture a world-class, high performance
environment aimed at delighting our customers.
Corporate Governance
Our Corporate Governance Policy:
Reliance Capital Asset Management Ltd. has a vision of being a
leading player in the Mutual Fund business and has achieved
significant success and visibility in the market. However, an
imperative part of growth and visibility is adherence to Good Conduct
in the marketplace.
At Reliance Capital Asset Management Ltd., the implementation and
observance of ethical processes and policies has helped us in
standing up to the scrutiny of our domestic and internationalinvestors.

96

Management :
The management at Reliance Capital Asset Management Ltd. is
committed

to

good

Corporate

Governance,

which

includes

transparency and timely dissemination of information to its investors


and unit holders. The Board of Directors of RCAM is a professional
body, including well-experienced and knowledgeable Independent
Members. Regular Audit Committee meetings are conducted to
review the operations and performance of the company.
Employees :
Reliance Capital Asset Management Ltd. has at present, a code of
conduct for all its officers. It has a clearly defined prohibition on
insider trading policy and regulations. The management believes in
the principles of propriety and utmost care is taken while handling
public money, making proper and adequate disclosures. All personnel
at Reliance Capital Asset Management Ltd are made aware of their
rights, obligations and duties as part of the Dealing Policy laid down
in terms of SEBI guidelines. They are taken through a well-designed
HR program, conducted to impart work ethics, the Code of Conduct,
information security, Internet and e-mail usage and a host of other
issues. One of the core objectives of Reliance Capital Asset
97

Management Ltd. is to identify issues considered sensitive by global


corporate standards, and implement policies/guidelines in conformity
with the best practices as an ongoing process. Reliance Capital Asset
Management Ltd. gives top priority to compliance in true letter and
spirit, fully understanding its fiduciary responsibilities.

98

HDFC MUTUL FUND

About Us
HDFC

Asset

Management

Company

Limited

(AMC)

HDFC Asset Management Company Ltd (AMC) was incorporated


under the Companies Act, 1956, on December 10, 1999, and was
approved to act as an Asset Management Company for the HDFC
Mutual Fund by SEBI vide its letter dated July 3, 2000.
The registered office of the AMC is situated at Ramon House, 3rd
Floor, H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate,
Mumbai - 400 020.
In terms of the Investment Management Agreement, the Trustee has
appointed the HDFC Asset Management Company Limited to
manage the Mutual Fund. The paid up capital of the AMC is Rs.
25.161 crore.
The present equity shareholding pattern of the AMC is as follows :
Particulars

% of the paid up equity capital


99

Housing Development Finance Corporation Limited


Standard Life Investments Limited

60

40

Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual


Fund, following a review of its overall strategy, had decided to divest
its Asset Management business in India. The AMC had entered into
an agreement with ZIC to acquire the said business, subject to
necessary

regulatory

approvals.

On obtaining the regulatory approvals, the following Schemes of


Zurich India Mutual Fund have migrated to HDFC Mutual Fund on
June 19, 2003. These Schemes have been renamed as follows:
Former Name

New Name

Zurich India Equity Fund

HDFC Equity Fund

Zurich India Prudence Fund

HDFC Prudence Fund

Zurich India Capital Builder Fund

HDFC Capital Builder Fund

Zurich India TaxSaver Fund

HDFC TaxSaver

Zurich India Top 200 Fund

HDFC Top 200 Fund

Zurich India High Interest Fund

HDFC High Interest Fund

Zurich India Liquidity Fund

HDFC Cash Management Fund

Zurich India Sovereign Gilt Fund

HDFC Sovereign Gilt Fund*

100

*HDFC Sovereign Gilt Fund has been wound up in March 2006

The AMC is managing 24 open-ended schemes of the Mutual Fund


viz. HDFC Growth Fund (HGF), HDFC Balanced Fund (HBF), HDFC
Income Fund (HIF), HDFC Liquid Fund (HLF), HDFC Long Term
Advantage Fund (HLTAF), HDFC Children's Gift Fund (HDFC CGF),
HDFC Gilt Fund (HGILT), HDFC Short Term Plan (HSTP), HDFC
Index Fund, HDFC Floating Rate Income Fund (HFRIF), HDFC
Equity Fund (HEF), HDFC Top 200 Fund (HT200), HDFC Capital
Builder Fund (HCBF), HDFC TaxSaver (HTS), HDFC Prudence Fund
(HPF), HDFC High Interest Fund (HHIF), HDFC Cash Management
Fund (HCMF), HDFC MF Monthly Income Plan (HMIP), HDFC Core
& Satellite Fund (HCSF), HDFC Multiple Yield Fund (HMYF), HDFC
Premier Multi-Cap Fund (HPMCF), HDFC Multiple Yield Fund . Plan
2005 (HMYF-Plan 2005), HDFC Quarterly Interval Fund (HQIF) and
HDFC Arbitrage Fund (HAF).
The AMC is also managing 13 closed ended Schemes of the HDFC
Mutual Fund viz. HDFC Long Term Equity Fund, HDFC Mid-Cap
Opportunities Fund, HDFC Infrastructure Fund, HDFC Fixed Maturity

101

Plans, HDFC Fixed Maturity Plans - Series II, HDFC Fixed Maturity
Plans - Series III, HDFC Fixed Maturity Plans - Series IV, HDFC
Fixed Maturity Plans - Series V, HDFC Fixed Maturity Plans - Series
VI, HFDC Fixed Maturity Plans - Series VII, HFDC Fixed Maturity
Plans - Series VIII, HFDC Fixed Maturity Plans - Series IX and HFDC
Fixed Maturity Plans - Series X.
The AMC is also providing portfolio management / advisory services
and such activities are not in conflict with the activities of the Mutual
Fund. The AMC has renewed its registration from SEBI vide
Registration No. - PM / INP000000506 dated December 8, 2006 to
act as a Portfolio Manager under the SEBI (Portfolio Managers)
Regulations, 1993. The Certificate of Registration is valid from
January 1, 2007 to December 31, 2009.

102

HDFC
HDFC
HDFC was incorporated under the Companies Act, 1956, on
December 10, 1999, and was approved to act as an Asset
Management Company for the HDFC Mutual Fund by SEBI vide its
letter dated June 30, 2000.
The registered office of the AMC is situated at Ramon House, 3rd
Floor, H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate,
Mumbai - 400 020.
In terms of the Investment Management Agreement, the Trustee has
appointed the HDFC Asset Management Company Limited to
manage the Mutual Fund. The paid up capital of the AMC is Rs.
25.161 crore.
The present equity shareholding pattern of the AMC is as follows :
Particulars

% of the paid up equity

capital
Housing Development Finance Corporation Limited
Standard Life Investments Limited

60

40
103

Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual


Fund, following a review of its overall strategy, had decided to divest
its Asset Management business in India. The AMC had entered into
an agreement with ZIC to acquire the said business, subject to
necessary regulatory approvals.

On obtaining the regulatory approvals, the following Schemes of


Zurich India Mutual Fund have migrated to HDFC Mutual Fund on
June 19, 2003. These Schemes have been renamed as follows:
Former Name

New Name

Zurich India Capital Builder Fund

HDFC Capital Builder Fund

Zurich India Equity Fund

HDFC Equity Fund

Zurich India High Interest Fund

HDFC High Interest Fund

Zurich India Liquidity Fund

HDFC Cash Management Fund

Zurich India Prudence Fund

HDFC Prudence Fund

Zurich India Sovereign Gilt Fund

HDFC Sovereign Gilt Fund*

Zurich India TaxSaver Fund

HDFC TaxSaver

Zurich India Top 200 Fund

HDFC Top 200 Fund

104

*HDFC Sovereign Gilt Fund has been wound up in March 2006.

The AMC is also providing portfolio management / advisory services


and such activities are not in conflict with the activities of the Mutual
Fund. The AMC has renewed its registration from SEBI vide
Registration No. - PM / INP000000506 dated December 8, 2006 to
act as a Portfolio Manager under the SEBI (Portfolio Managers)
Regulations, 1993. The Certificate of Registration is valid from
January 1, 2007 to December 31, 2009.

The Board of Directors of the HDFC Asset Management


Company Limited (AMC) consists of the following eminent
persons.

Mr. Deepak S. Parekh

Mr. N. Keith Skeoch

Mr. Keki M. Mistry

Mr. James Aird

Mr. P. M. Thampi

Mr. Humayun Dhanrajgir

Dr. Deepak B. Phatak


105

Mr. Hoshang S. Billimoria

Mr. Rajeshwar Raj Bajaaj

Mr. Vijay Merchant

Ms. Renu S. Karnad

Mr. Milind Barve


Mr. Deepak S. Parekh
Mr. Deepak Parekh, the Chairman of the Board, is associated with
HDFC Ltd. in his capacity as its Executive Chairman.
Mr. Parekh joined HDFC Ltd. in a senior management position in
1978. He was inducted as Wholetime Director of HDFC Ltd. in 1985
and was appointed as the Executive Chairman in 1993.
His other Directorships as on March 31, 2009 are as follows:
Company
Airport Authority of India

Director

Bharat Bijlee Limited

Alternate Director

Borax Morarji Limited

Alternate Director

Castrol India Limited

Director

Exide Industries Limited

Alternate Director

GlaxoSmithKline Pharmaceuticals Limited

Chairman
106

HDFC ERGO General Insurance Company Limited

Chairman

HDFC Standard Life Insurance Company Limited Chairman


Hindustan Oil Exploration Corporation Limited
Hindustan Unilever Limited

Director

Director

Infrastructure Development Finance Company Limited


Lafarge India Pvt. Limited

Chairman

Mahindra & Mahindra Limited

Director

Satyam Computer Services Limited

Director

Siemens Limited

Chairman

The Indian Hotels Company Limited

Director

Zodiac Clothing Company Limited

Alternate Director

Chairman

Mr. Parekh is a Fellow of the Institute of Chartered Accountants


(England & Wales).
Mr. N. Keith Skeoch
Mr. N. Keith Skeoch is associated with Standard Life Investments
Limited as its Chief Executive and is responsible for all company
business and investment operations within Standard Life Investments
Limited.
Mr. Skeoch joined Standard Life Investments Limited as Chief

107

Executive Officer from James Capel & Co (now HSBC Securities),


where he was employed from 1980 to 1999. From his first role at
James Capel as an International Economist, he went on to become
the Senior UK Economist in 1982 and Chief Economist two years
later. In 1993, he was appointed Director of Economics and Strategy
and was given the responsibilities of Managing Director, International
Equities in 1998.
His other Directorships as on March 31, 2009 are as follows:

108

ICICI PRU. MUTUL FUND

ICICI Prudential mutual fund is a joint venture between ICICI Bank, a


premier financial powerhouse, and Prudential plc, a leading
international financial services group headquartered in the United
Kingdom. ICICI Prudential was amongst the first private sector
insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development
Authority (IRDA).
ICICI Prudential's capital base stands at Rs. 20.26 billion with ICICI
Bank and Prudential plc holding 74% and 26% stake respectively.
For the past five years, ICICI Prudential has retained its position
as the No. 1 private life insurance in the country, with the wide
range of flexible products that meet the needs of the Indian
customer at every step in life. In the first quarter of financial year
2006-07 we have cross the new milestone of insuring the lives of
more than 2.5 million police holders. Today our nation-wide team
comprises of over 580 offices, over 234000 advisors; and 22 bank
assurance partners.
109

ICICI Prudential is also the only private life insurer in India to receive
a National Insurer Financial Strength rating of AAA (Ind) from
Fitch ratings. The AAA rating is the highest rating, and is a clear
assurance of ICICI Prudential's ability to meet its obligations to
customers at the time of maturity or claims. This rating is
determined after a thorough evolution of companys financial
processes, risk management framework , product mix , market
share, etc. Over the past five years
We have paid over 2100 claims amounting to more then Rs 26 crore
and taken several step to assure customers of quick and smooth
claims process .For the past five years, ICICI Prudential has
retained its position as the No. 1 private life insurer in the country,
with a wide range of flexible products that meet the needs of the
Indian customer at every step in life. We have once again
maintained our leadership position with a 32% market share
amongst the private life insurance companies ( figure as of
Quarter 1,finantial year 2006-07)

110

MARKET SHARE OF ICICI PRUDENTIAL

DISTRIBUTION
ICICI Prudential has one of the largest distribution networks amongst
private life insurers in India with a network of over 234,000 advisors,
and having commenced operations in 271 cities and towns in India,
stretching from Bhuj in the west to Guwahati in the east, and Jammu
in the north to Trivandrum in the south.
The company has 22 bank assurance partners, having tie-ups with
ICICI Bank, of India, Federal Bank, South Indian Bank, Lord Krishna
111

Bank, all regional rural banks sponsored by Bank of India, as well as


some co-operative banks; as well as over 200 corporate agents and
brokers. It has also tied up with NGOs, MFIs and corporate for the
distribution of rural policies.
Board of Directors
The ICICI Prudential Life Insurance Company Limited Board
comprises reputed people from the finance industry both from India
and abroad.
Mr. K.V. Kamath, Chairman
Mr. Barry Stowe
Mrs. Kalpana Morparia
Mrs. Chanda Kochhar
Mr. HT Phong
Mr. M.P. Modi
Mr. R Narayanan

Mr. Keki Dadiseth

Ms.Shikha Sharma, Managing Director


Mr. N.S.Kannan, Executive Director
112

Mr. Bhargav Dasgupta, Executive Director

Management Team
The

ICICI

Prudential

Life

Insurance

Company

Limited

Management team comprises reputed people from the


finance industry both from
India and abroad.
Ms. Shikha Sharma, Managing Director & CEO
Mr. N. S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director
Ms. Anita Pai, EVP - Customer Service & Technology
Mr. Azim Mithani, Chief Actuary
Mr. Puneet Nanda , Chief Investments Officer

113

Vision & Values


Our vision:
To make ICICI Prudential the dominant Life and Pensions player built on trust by
world-class people and service.
This we hope to achieve by:
1-Understanding the needs of customers and offering them superior products
and service .
2- Leveraging technology to service customers quickly, efficiently and
conveniently.
3- Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders
4-Providing an enabling environment to foster growth and learning for our
employees .
5-And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment to 5
core values -- Integrity, Customer First, Boundary less, Ownership and Passion.
Each of the values describe what the company stands for, the qualities of our
people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity, where
we can play a significant role in redefining and reshaping the sector. Given the
114

quality of our parentage and the commitment of our team, there are no limits to
our growth.

Our values :
Every member of the ICICI Prudential team is committed to 5 core values:
Integrity, Customer First, Boundary less, Ownership, and Passion. These values
shine forth in all we do, and have become the keystones of our success.

115

RESEARCH METHODOLOGY
This Research involves the collection of primary data through survey
approach because data is to be collected only by meeting worker of
mutual fund Company executives. Survey helps to know that what is
the strength of company means which worth, publicity and strength.
Approached executive through various means. We did cold calling,
targeted on Mutual fund. A meeting that talks about the career
opportunity being provided and the benefits that a what is the position
of company in India. Also did surveys, at places like Karvy, UTI, Birla,
HDFC, Reliance, ICICI pru with a questionnaire taking their
information.
Also since how many years was established your company in
Lucknow city. All this helps in judging who will be a better in 5 MNCs
companys and who fulfills the criteria we looking out for the most. We
mainly approached that companys executives who answered truly.

116

RESEARCH INSTRUMENT
The research instrument used here for collecting primary data
is

questionnaire. This has provided flexibility in substantial

Information from diversified people.


SAMPLING PLAN:
Sampling unit: Lucknow
Sample size :

120

Sampling Procedure
(a)

Random sampling

(b) Stratified sampling: Existing executive in other AMCs


companies Lucknow Region
Big sample size helps in getting more

reliable result &

information about the respondents preferences.


CONTACT METHOD:

117

Following

contact methods through which information was

gathered:
In depth interview
IN-DEPTH INTERVIEW:
After

collecting

the

data

made

an

appointment

with

respondents for their detailed interview to check whether the


candidate have zeal to earn money by making relationship with
customers. Their qualification and work experience was also
checked.
DATA COLLECTION:
Primary Data: Data collected through market survey
and cold calling.
Secondary Data: Data collected from magazines,
yellow pages and from other indirect sources.
Primary Data: For collecting data I directly approached to
persons of different profile with questionnaire. I took the relevant
information out of them.

118

Primary data is the kind of data, which is collected by the investigator


himself for the purpose of the specific study. The data such collected
is original in character. The advantage of this method of collections
authentic.
For Primary data we did MNCs Companies surveys where we
approached people through questionnaire, used posters & banners
(many people came enquiring & we got questionnaires filled on which
calls were made later, we also did cold calling on random numbers
telling people about the career opportunity & those that seemed
interested were called to the office for formal meeting. The method of
sampling was the random convenient sampling method.
MARKET SURVEY
We carried out various surveys where we approached executives of
ICICI Prudential, Birla, HDFC, Reliance. We approached executives
who appeared in interview and they showed interest in my
programme they are Branch Manager HDFC Mutual fund, cluster
head ICICI Pru and executive of UTI, Birla and Reliance mutual fund.
Their name & contact numbers were taken.
SECONDARY DATA:
119

The data that has been already collected by others is called


secondary data. The secondary data could be collected from journals,
Reports, internet and various publications. The advantages of the
secondary data can be it is economical, both in terms of money and
time spent.
For secondary data we used various sources like Directories, CAs
directory, Yellow pages, references & also data from various internet
sites like google.com, ask.com where there are few free resumes
available.
These data was taken from the following sources:
Mutual Fund companies executives

120

OBJECTIVE OF THE STUDY


The Present study has been undertaken with the objective of
examining, analyzing and interpreting under the title
consumer behaviour about mutual fund in karvy
The specific objective can be enumerated as following(1)To study the demographic pattern of investment.
(2)To know the saving habits of investors.
(3)To know the interest of customers regarding Investment in
Mutual Fund.
(4)To identify the criteria for choosing the schemes amongst the
followinga. Tax benefit
b. Capital growth
c. Liquidity
(5)To identify need of customers/investors according to the various
schemes available in Mutual Fund, Such as sectoral fund,
debt fund and equity fund.
(6)To study the satisfaction level of Investors.

121

(7)To identify the investors reaction for the introduction of


Mandatory Permanent Account Number (PAN) Card.
(8)To develop the understanding of various funds available in the
market.

122

DATA ANALYSIS
INVESTORS PROFILE
AGE:
Age (Years)
20-30
30-40
40-50
>50
Total

No
23
48
34
15
120

%
19.17
40.00
28.33
12.50
100.00

Description:

Most of the respondents (40%) are in the age group of 30-40 years.

Least no. of respondents are in the age group of more than 50 years.

123

Sex:
Male
MALE
FEMALE
Total

No
94
26
120

%
78.3
21.7
100.00

Description:

Majority of the respondents are male (about 78%).

About 22% are female No. of female investors are quite less than that of male.

124

Profession:
Profession
Govt. Service
Private Service
Self Employed
Total

No
23
45
52
120

%
19.17
37.50
43.33
100.00

Description:

Majority of the respondents are self employed i.e. 43% of the sample size.

Govt. servant constitute only about 19% lesser than private service holder (about
37%).

More of the person are from self employed which determine from the concern
report.

125

Q.1

Which Income bracket best describe your annual income?


Income (Rs. in lakh)
Up to One
1 to 2.5
2.5 to 5
>5
Total

No
08
36
54
22
120

%
7
30
45
18
100.00

Description:

Majority of the investors comes under the income 2.5 to 5 lakh.

About 18% respondents come under the income more than 5 lakh.

Least %age (7%) respondents come under the income up to 1 lakh.

126

Q.2

What % of your income do you invest?


Investment (in %)
<15
15-30
30-50
>50
Total

Number
32
41
29
18
120

%
27
34
24
15
100.00

Description:

34% of the respondents invest 15 to 30% of their income where as 27%


respondent invest less than 15% of their income.

24% invest 30-50% income of their income.

Only 15% respondents invest greater than half of their total income.

127

Q.3

How much of total investment do you invest in mutual fund?


Investment (in %)
<10
10-20
20-40
>40
Total

Number
43
37
28
12
120

%
36
31
23
10
100.00

Description:

36% of the respondents invest less than 10% in mutual fund out of their total
investment compare to 31% who invest their 10-20% of their total investment.

23% respondents invest 20-40% of their total investment where as respondent


greater than 40% invest of their total investment in mutual fund.

128

Q.4

What is the Primary objective of your investment?


Objectives
Tax benefits
Capital appreciation
Dividend
Liquidity
Total

Number
38
42
09
31
120

%
32
34
08
26
100.00

Description:

About 34% of the respondents primary objective is capital appreciation. Tax


benefit is the second objective of the respondent (31%).

Liquidity as a primary objective constitute only 26%. 8% invest for the objective
of dividend.

129

Q.5

Which of the following types of Mutual Fund do you invest in?


Types of Mutual Fund
Open Ended
Close Ended
Both
Total

Number
47
12
61
120

%
39
10
51
100.00

Description:

Open ended schemes constitute 39% of the total respondents. Where as only 10%
constitute close ended schemes.

Both open ended and close ended constitute about half of the respondent (51%).

130

Q.6

What is your preference of investment among the following schemes?


Schemes
Equity
Debt
Sectoral
Others
Total

Number
49
23
35
13
120

%
41
19
29
11
100.00

Description:

Equity schemes are the most preferred (41%), then sectoral schemes (29%).

Debt schemes constitute 19% and others constitute only 11%.

131

Q.7

Which of the following AMCS (Mutual Fund) did you make maximum

investment in?
AMCS (Mutual Fund)
Reliance
ICICI Prudential
LIC
Karvy
Others
Total

Number
29
07
43
25
16
120

13.00%

%
24
06
36
21
13
100.00

24.00%

21.00%
6.00%
36.00%

Reliance
ICICI

LIC
KArvy

Others

Description:

Reliance mutual fund is widely expected (second position0 just sfter LIC which
constitute 36% of the respondents. Karvy on 3rd (21%).

ICICI Prudential is least popular (only6%).

Others mutual funds constitute 13% of the respondents.

132

Q.8

Do you think that the performance of AMC effect the criteria of Investment?
Opinion
Yes
No
Cant Say
Total

Number
97
14
09
120

%
80
12
08
100.00

Description:

Maximum of the respondents (80%) think that the performance of AMC effect the
criteria of investment whereas 12% dont believe so.

8% are unable to say anything.

133

Q.9

Are you satisfy with the return or your present investment?


Opinion
Highly Satisfied
Satisfied
Unsatisfied
Highly Unsatisfied
Total

Number
11
57
38
14
120

%
09
47
32
12
100.00

Description:

About half of the respondents (47%) are satisfied with return of their present
investment. On the other hand 32% are unsatisfied also.

9% of the respondents are highly satisfied compare to 12% who are highly
unsatisfied.

134

Q.10

Do you think that mandatory of permanent account number (PAN) effect the

investment?
Opinion
Yes
No
Cant Say
Total

Number
93
21
06
120

%
77
18
05
100.00

Description:

77% of the respondents think that mandatory PAN effect the investment. On the other
hand, 18% dont believe so.

5% are unable to say anything.

135

FINDINGS:
1) Majority of the respondent we met were Male in the age group of 30-40 yrs.
2) More than 65% of the investor invest only about 20% of their total investment in
Mutual fund.
3) Majority of investors have invested in LIC, as perhaps its oldest and reliable
trust.
4) Amongst the private player, Karvy Mutual fund is rapidly becoming popular
among investors.
5) People invest in Mutual Fund Primarily for capital growth and secondarily for tax
benefits % liquidity.
6) Majority of the investors opt for equity schemes.
7) Open ended schemes have more preference to close ended schemes.
8) Performance of AMC largely effect the investment.
9) Introduction of Permanent Account No. (PAN) for investing in Mutual Fund will
effect the AMC in accumulating funds.

136

RECOMMENDATIONS AND SUGGESTIONS


1) There is a large scope of Mutual Funds to invest in especially in suburban area.
2) There is need to have more promotional activities from the very grass root level
such as installing canopy, advertising through print & electronic medic.
3) People invest their savings in a trust not in a company. So investors trust should be
maintained and developed by delivering best services and after safe services, value
added services and after sale services.
4) The objective of the investment for mutual fund should be capital growth and fund
should be invested in equities.
5) Equity schemes of Mutual Fund are the most preferred amongst investors as they
give high returns over the other schemes.
6) Open ended scheme is highly preferred amongst customers as there may be reasons
for redemption of unit at any period of time.
7) Performance of mutual should be focused on by providing necessary facts figures,
award & other achievement of the trust.
8) Investors got their expected returns from the investment they have make already
and thus it widen the scope of investment further.
9) Almost 75% of investor do not want to give their permanent Account No. (PAN)
while investing in Mutual fund and trust, it should be mandatory for a specified
amount of investment.

137

LIMITATIONS

Lead provided me was not sufficient.

Due to paucity of time, sample size limited up to 120 respondents only.

Most of the investors did not respond well & might have replied incorrectly.

it was difficult to fix appointment with clients due to their tight schedule.

The reliability of data collected and analyzed depends upon the sources of data.

Some investors did not want to reveals fact figures of their earnings and
investment.

The lead provided me was limited to Lucknow only. It was not enough to my
summer training Topic.

138

BIBLIOGRAPHY
www.google.com
www.karvy.com
www.reliancemutual.com
www.nseindia.com
www.reliancemutualfund.com
www.mutualfundofinsa.com
NEWS PAPER (ECONOMIC TIMES, BUSINESS WORLD, TIMES
OF INDIA)

139

QUESTIONNAIRE
INVESTORS PROFILE
AGE:
Age (Years)
20-30
30-40
40-50
>50
Sex:
Male
MALE
FEMALE
Profession:
Profession
Govt. Service
Private Service
Self Employed
Q.1
Which Income bracket best describe your annual income?
Income (Rs. in lakh)
Up to One
1 to 2.5
2.5 to 5
>5
Q.2
What % of your income do you invest?
Investment (in %)
<15
15-30
30-50
>50
Q.3
How much of total investment do you invest in mutual fund?
Investment (in %)
<10
10-20
20-40
>40
Q.4
What is the Primary objective of your investment?
140

Objectives
Tax benefits
Capital appreciation
Dividend
Liquidity
Q.5
Which of the following types of Mutual Fund do you invest in?
Types of Mutual Fund
Open Ended
Close Ended
Both
Q.6
What is your preference of investment among the following schemes?
Schemes
Equity
Debt
Sectoral
Others
Q.7
Which of the following AMCS (Mutual Fund) did you make maximum
investment in?
AMCS (Mutual Fund)
Reliance
ICICI Prudential
LIC
Karvy
Others
Q.8
Do you think that the performance of AMC effect the criteria of Investment?
Opinion
Yes
No
Cant Say
Q.9
Are you satisfy with the return or your present investment?
Highly Satisfied
Satisfied
Unsatisfied
Highly Unsatisfied
Q.10 Do you think that mandatory of permanent account number (PAN) effect the
investment?
Yes
No
Cant Say

141