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A study of Customer Satisfaction towards Mutual Funds

EXECUTIVE SUMMARY
Karvy, the FINAPOLIS Ltd. is a stock Broking Company that deals in shares. Apart
from security broking Karvy is in to Demat services, Mutual fund and Insurance services. It offers
a wide range of financial services in order to meet different individuals financial planning.
The project emphasizes on Customer satisfaction towards depository participants
Objectives of the Study:

Main Objective is to find the level of satisfaction of customers.


To find the factors which are responsible for slow growth.
To find out the preference people give to various options available.
To know the kind of benefit people expected from their service.
Origination Study.
Mutual Fund study.

Research Methodology:
Data source:
Primary Data

:Through Questionnaire

Secondary Data : Karvys Record & Report, Magazine & Websites.


Sample size: 100 customers of Karvy Stock Broking Ltd.
Area Covered for research: Only in Belgaum city.
Sampling Procedure: Random sampling method from available database.
In the present scenario the service industry has given an utmost importance of doing a particular
task at a fastest time in order to satisfy the customer and to attract new customer. In this project we
can find out the customer of Karvy Consultant have satisfied with Mutual Fund service.

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Findings:
1.I have carried out this exercise on Mutual Funds. With So in my studies I have tried to see
whether the customer have satisfied with the services given by the Karvy consultants Ltd.
2. .It is also came to know that new customer are not aware of the schemes available in mutual
funds
3. I have also seen that 37% awareness of new service given by Karvy Stock Broking

Ltd is

from mainly through Agents.


4. It is also find that more than46% customers are satisfied and 355 of customers are mostly
satisfied with the service of mutual funds given by Karvy consultants ltd.
5. Nearly 16% of the respondents are neither satisfied or un satisfied because of the lack of
attention given to them for their enquires.
6. 3% of customers are mostly unsatisfied with the service because the reason is that
lack of updated information.
7. 36% of respondents prefer Karvy consultants Ltd because of their Quality services given by
them .
8.62% of the respondents opinion is that mutual fund scheme is Extremely Good.
9. Majority of the respondents are very happy with the services

Introduction
India has two hundred years old tradition in Securities. Infact that first India stock exchange
established in Bombay is the oldest in Asia. The earliest security dealings were Transactions in
loan securities of East India Company, the dominant institution of those days. Corporate Shares
came into the picture by 1830s and assumed significance with the Companies Act of 1956. In
1887 the broker community gave birth to the Native share and stock brokers Association which
is now known as the Bombay Stock Exchange.
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The Indian Capital grew at a very moderate rate from 1951 to 1980. However it registered an
impressive growth in 1980s. the process of liberalization and the transparency in operation has
raised the interest of foreign investors in India. Till 1978 there were only 8 recognized exchanges
in India. Initially the exchange operated on an outcry system i.e. manual system of trading Due to
increase in the trading volumes, the number of issuer increased substantially ,and the birth of
NSES highly transparent automated system come into existence Even then there was an increase
in paper work causing a gridlock at every stage in the stock market This delays the clearance and
settlement of traders , registration of securities in the shareholder name and due this it increased
the back office paper work intermediaries These outdated systems have increased settlement risks
and have rendered the implementation of a delivery of a versus payment system impossible
Design of the Study
Title of the project:
To Know the Customer Satisfaction towards Mutual Funds.
Statement of the Problem: KARVY STOCK BROKING Ltd is providing the Demat service.
Hence in this report an attempt is made to know the present customer satisfaction towards Mutual
Funds.
RESEARCH OBJECTIVES:
Main Objective is to find the level of satisfaction of customers.
To find the factors which are responsible for slow growth.
To find out the preference people give to various options available.
To know the kind of benefit people expected from their service.
Origination Study.
Mutual Fund study
Methods &Methodology:
Sampling Design:

Sampling since segment wise investors in KARVY STOCK BROKING Ltd are not
available the overall customers were considered for the study. Hundred Percent coverage

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was difficult within the limited period of time. Hence random sampling survey method was
adopted for the purpose of the study.

Sampling Size: A sample of 100 was chosen for the purpose of the study. Sample consisted
of small investor, large investors and traders of KARVY STOCK BROKING Ltd.

Sampling Procedure: From large number of customer of KARVY STOCK BROKING


Ltd. Were randomly selected from the available customer database.

Field Study: Directly approached respondents


DATA COLLECTION METHOD:
1.

PRIMARY DATA: For a study of this nature of the data is primary data it is collected
through by making survey, which is systematic collection of information
directly from the respondents. (Questionnaire & telephonic interview).

2.SECOUNDARY DATA:

This is been is collected through


RECORD & REPORT, MAGAZINE & WEBSITES.

KARVYS

MEASUREMENT TECHNIQUE / STATISTICAL TOOLS:


For this purpose measurement
technique used for survey is questionnaire &
telephonic interview to collect information from the respondent
ANALYTICAL TECHNIQUE:

Statistical technique used for measuring the response is in terms of


percentage.

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

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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
inserviceandfinallytotalityinservice.
Our highly qualified manpower, cutting-edge technology, 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.
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. 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.
In 1982, a group of Hyderabad-based practising Chartered Accountants started Karvy

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Computers hare Private Ltd., with a capital of Rs.1,50,000 offering auditing and taxation
services initially. Later, it forayed into the Registrar and Share Transfer activities and
subsequently into financial services. All along, Karvy's strong work ethic and professional
background leveraged with Information Technology enabled it to deliver quality to the
individual.
A decade of commitment, professional integrity and vision helped Karvy achieve a
leadership position in its field when it handled the largest number of issues ever handled in the
history of the Indian stock market in a year. Thereafter, Karvy made inroads into a host of
capital-market services, - corporate and retail - which proved to be a sound business synergy.
Today, Karvy has access to millions of Indian shareholders, besides companies, banks,
financial institutions and regulatory agencies. Over the past one and half decades, Karvy has
evolved as a veritable link between industry, finance and people. In January 1998, Karvy
became the first Depository Participant in Andhra Pradesh. An ISO 9002 company, Karvy's
commitment to quality and retail reach has made it an Integrated financial services company.
GROUP OF COMPANIES
KARVY SECURITY LTD

Deals in distribution of various investment products, viz, equities,


Mutual fund, bounds debenture fixed deposits, insurance policies & other financial roducts.

Member Hyderabad stock Exchange (HSF)

KARVY STOCK BROKING LTD.

Deals in buying & selling equity shares & debenture &on the national stock exchange
(NSE), the Hyderabad stock exchange & over the counter exchange of India (OTCEI)

Member-national stock exchange (NSE)

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KARVY CONSULTANTS LTD

Transfer agency services for corporate & mutual funds

Registrar for IPO\book building

Depositary participant services

Registered with both NSDL/CDSL

It enable services MT/call center /data classification

Karvy .com comprehensive financial advisory site

KARVY INVESTER SERVICES LTD.

Deals in issue management, investor banking & merchant banking of fixed income
& other financial products.

Trading through BSE

DEPOSITARY SEVICES

Registered as DP both with NSDL & CDSL

Serving over 2 lac investors

Online connectivity at Hyderabad, Lucknow &Bangalore

Ranked among the top 5 DPS in the country

High synergy with registry & broking activities for higher services levels to the
customer information

Web based customer information

Provision of service in over 75 locations

IT SERVICES GROUP
1.Medical transcription
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First strategic initiative into global processing

Among the top MT companies in India

2.E-BUSINESS GROUP

Strategic intent: to develop a comprehensive financial services portal which


includes

Investor servicing: mutual funds, corporate shareholders & depository clients.

Distribution of financial products

Net trading

Insurance distribution
1. Call center

Started with a 30 agent e-call center

MISSION:
Our mission is to be a leading, preferred service provider to our customers, and we aim to
achieve this leadership position by building an innovative, enterprising and technology driven
organization which will set the highest standards of service and business ethics.

QUALITY POLICY:
To achieve and retain leadership, Karvy shall aim for complete
customers satisfaction, by combining its human and Technological resources, to provide superior
quality financial Services. In the process, Karvy will strive to exceed Customers expectations.
QUALITY OBJECTIVES:
As per the Quality Policy, Karvy will:

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1. Build in- house process that will ensure transparent and harmonious relationship
with its clients and investors to provide high quality of services.
2. Establish a partner relationship with its investor service agents and vendors that
will help in keeping up its commitments to the customers.
3. Provide high quality of work life for all its employees and equip them with
adequate knowledge &skills so as to respond to customers need.
4. Continue to uphold the values of honesty & integrity and strive to establish
unparalleled standards in business ethics.
5. Use state of the art information technology in developing new and innovative
financial products and services to meet the changing needs of investors and
clients.
6.

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


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

7.

Strive to keep all stake- holders (shareholders, clients, investors, employees,


suppliers and regulatory authorities) proud and satisfied.

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

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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
Largest mobiliser of funds as per PRIME DATABASE
First ISO - 9002 Certified Registrar in India
A Category- I -Merchant banker.
A Category- I -Registrar to Public Issues.
Ranked as " The Most Admired Registrar" by MARG.
Handled the largest- ever Public Issue - IDBI
Strategic tie-up with Jardine Fleming India Securities Ltd.
Handled over 500 Public issues as Registrars.
Handling the Reliance Account which accounts for nearly 10 million account holders
First Depository Participant from Andhra Pradesh.
Major issues managed as arrangers
Kerala State Electricity Board.
Power Finance Corporation
A.P. Water Resources Development Corporation.
A.P. Roads Development Corporation.
A.P. State Electricity Board.
Haldia Petrochemicals Ltd.
Major issues managed as Co-Managers
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IndusInd Bank Ltd
ICICI Bonds March 97
ICICI Bonds Dec 97
ICICI Safety Bonds March 98
ICICI Safety Bonds April 98. July 98, Oct 98, Dec 98, Jan 99.
The Jammu and Kashmir Bank Ltd
Major issue handled as Registrars to Issues
IDBI Equity
Morgan Stanley Mutual Fund
Bank of Baroda
Bank of Punjab Ltd
Corporation Bank
IndusInd Bank Ltd
Housing and Urban Development Corporation (HUDCO) Ltd
Madras Refineries Ltd
Tamil Nadu Newsprint & Paper Ltd
BPL Ltd
Birla 3M Ltd
Essar Shipping Ltd
Essar Steels Ltd.
Hindustan Petroleum Corporation Ltd.
Infosys Technologies Ltd.
Jindal Vijayanagar Steels Ltd.

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Nagarjuna Fertilizers & Chemicals Ltd.
Rajshree Polyfil Ltd.
Karvy Securities Ltd.
Karvy has secured over Rs. 500 crore in the following debt issues.
Andhra Pradesh Road Development Corporation Ltd
ICICI Bonds ( Private Placement)
ICICI Bonds 96
ICICI Bonds 97- I
ICICI Bonds 97 II
ICICI Safety Bonds March 98.
IDBI Bonds 96.
IDBI Flexi Bonds I
IDBI Flexi Bonds II
IDBI Flexi Bonds III
Kerala State Electricity Board
Krishna Bhagya Jala Nigam Ltd
Power Finance Corporation Ltd
Andhra Pradesh Water Resources Development Corporation
Andhra Pradesh State Electricity Board

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Karvys Mutual Fund services:


Building a heritage of confidence:
Since its inception in 1982, Karvy has demonstrated a dedication coupled with dynamism that
has inspired trust from various segments corporate, government bodies and individuals.
Karvy has since been performing a pivotal role as the intermediary the interface between
these players. With Mutual Funds emerging as a distinct asset class, Karvy has made a strategic
choice to leverage the power of latest technology to provide a cutting edge to its services. We,
today, service nearly 40% of the asset management companies (AMCs) across an extensive
network of service centers with assets under service in excess of Rs.10,000 crores. Mutual fund
services have been undergoing a sea change in the Indian market place and asset management
companies are finding their niche in delivering unique products and service offerings.
Our ability to mass customize and offer a diverse range of products for a diverse range of
customers has helped mutual fund companies to uniquely position themselves in the market
place. These diverse range of services cut across multiple delivery channels service centers,
web, mobile phones, call center has brought home the benefits of technology to investors,
distributors, and the mutual funds.
Going forward, we shall strive to create new products and services, which would address the
needs of the end customer. Our single minded focus in delivering products for customers has
given us the distinguished position of being the preferred provider of financial services in
Alliances:
Karvy has a strategic alliance with Jardine Fleming India Securities Limited (JFISL) - one of
Asia's most prestigious investment bankers - to leverage on the latter's investment banking

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expertise. This would augment the retail distribution reach and provide the Indian investor
access

to

the

best

global

and

local

insights

on

financial

markets.

Jardine is a respected investment banker with a demonstrated track-record of delivering value


to its clients spread over 43 countries. It is ranked amongst the world's TOP 3 Foreign
Institutional Investors (FIIs).
Milestone:

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ORGANISATION CHART

Managing Director
Chief Managing Director

Vice-President

Karvy
Securities Ltd.
Deputy

Vice-President

Karvy
Stock Broking Ltd.

Vice-President

Vice-President

Karvy
Consultants

Karvy
Ltd.

Investors Services Ltd.

Deputy

Deputy

Deputy

General

General

General

General

Manager

Manager

Manager

Manager

Senior
Manager

Senior
Manager

Senior

Senior

Manager

Manager

Branch Manager

Number of Team Leaders


N number of Executives

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INTRODUCTION
Different investment avenues are available to investors. Mutual funds also offer good investment
opportunities to the investors. Like all investments, they also carry a certain
Risks. The investor should compare the risks and expected yields after adjustment of tax on
various instruments while taking investment decisions .The investors may seek advice from
experts and consultants including agents and distributors of mutual funds schemes while making
investment decisions.
With an objective to make the investors aware of functioning of mutual funds, an attempt has been
made to provide information in question answer format that may help the investors in taking
investment decisions.
Mutual funds now represent perhaps the most appropriate investment opportunity for most
investors. As financial markets become

more sophisticated and complex., investor need a

financial intermediary who provides the required knowledge on professional expertise on


successful investing.
CONCEPT OF MUTUAL FUNDS:
A Mutual Fund is a trust that pools the savings of a number of investors who share a
Common financial goal. The money thus collected is invested by the fund manager in
different types of securities depending upon the objective of the scheme. These could
range from shares to debentures to money market instruments. The income earned
through these investments and the capital appreciation realized by the scheme are shared
by its unit holders in proportion to the number of units owned by them (pro rata). Thus a
Mutual Fund is the most suitable investment for the common man as it offers an
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opportunity to invest in a diversified, professionally managed portfolio at a relatively low
cost. Anybody with an investible surplus of as little as a few thousand rupees can invest
in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and
strategy. It is is a mechanism for pooling the resources by issuing units to the investors
And investing funds in securities in accordance with the objectives as disclosed in offer
Document. Investments in securities are spread across a wide cross-section of industries
And sectors and thus the risk ins reduced. Diversification reduces the risk because all
Stocks may not move in the same direction in the same proportion at the same time.
Investors of the mutual funds are known as the unit holders.
The mutual funds normally come out with a number of schemes with
different investment objectives, which are launched from time to time. Mutual funds
required to be registered with securities and exchange board of India (SEBI), which
regulates securities markets before it can collect funds from the public.
The flow chart below describes broadly the working of a mutual fund :

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ORGANISATION OF A MUTUAL FUND
There are many entities involved and the diagram below illustrates the
Organizational set up of a mutual fund:

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY


The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at
the initiative of the Government of India and Reserve Bank the. The history of mutual funds in
India can be broadly divided into four distinct phases
First Phase 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the
Reserve Bank of India and functioned under the Regulatory and administrative control of the
Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in place
of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had
Rs.6,700 crores of assets under management.
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Second Phase 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987
followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct
92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in
December 1990.
At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores.
Third Phase 1993-200 With the entry of private sector funds in 1993, a new era started in
the Indian mutual fund industry, giving the Indian investors a wider choice of fund families.
Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari
Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund
registered in July 1993. 3 (Entry of Private Sector Funds)
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual
Fund) Regulations 1996
The number of mutual fund houses went on increasing, with many foreign mutual funds setting
up funds in India and also the industry has witnessed several mergers and acquisitions. As at
the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores.
The Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of
other mutual funds.

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Fourth Phase since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated
into two separate entities. One is the Specified Undertaking of the Unit Trust of India with
assets under management of Rs.29,835 crores as at the end of January 2003, representing
broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified
Undertaking of Unit Trust of India, functioning under an administrator and under the rules
framed by Government of India and does not come under the purview of the Mutual Fund
Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of
the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under
management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of consolidation and growth. As at the
end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under
421 schemes.
The graph indicates the growth of assets over the years
Unit Trust of India was the first mutual fund set up in India in the year 1963. In early
1990s, Government allowed public sector banks and institutions to set up mutual funds
In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. The
Objectives of SEBI are to protect the interest of investors in securities and to promote
The development of and to regulate the securities market.
As far as mutual funds are concerned, SEBI formulates policies and regulates the mutual

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funds to protect the interest of the investors. SEBI notified regulations for the mutual
funds in 1993. Thereafter, mutual funds sponsored by private sector entities were allowed
to enter the capital market. The regulations were fully revised in 1996 and have been
amended thereafter from time to time. SEBI has also issued guidelines to the mutual
funds from time to time to protect the interests of investors.
All mutual funds whether promoted by public sector or private sector entities including
those promoted by foreign entities are governed by the same set of Regulations. There is
no distinction in regulatory requirements for these mutual funds and all are subject to
monitoring and inspections by SEBI. The risks associated with the schemes launched by
the mutual funds sponsored by these entities are of similar type. It may be mentioned here
that Unit Trust of India (UTI) is not registered with SEBI as a mutual fund (as on January 15,
2002).
MUTUAL FUND SET-UP:
The mutual fund industry in India began with the setting up of the Unit Trust In India
(UTI) in 1964 by the Government of India. During the last 36 years, UTI has grown to be
a dominant player in the industry with assets of over Rs. 76,547 Crores as of March 31,
2000. The UTI is governed by a special legislation, the Unit Trust of India Act, 1963. In
1987 public sector banks and insurance companies were permitted to set up mutual funds
and accordingly since 1987, 6 public sector banks have set up mutual funds. Also the two
Insurance companies LIC and GIC established mutual funds. Securities Exchange Board
of India (SEBI) formulated the Mutual Fund (Regulation) 1993, which for the first time
established a comprehensive regulatory framework for the mutual fund industry. Since
then several mutual funds have been set up by the private and joint sectors.
A mutual fund is set up in the form of a trust, which has sponsor, trustees, asset

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Management company (AMC) and custodian. The trust is established by a sponsor or


More than one sponsor who is like promoter of a company. The trustees of the mutual
Funds hold its property for the benefit of the unit holders. Asset Management Company
(AMC) approved by SEBI manages the funds by making investments in various types of
Securities. Custodian, who is registered with SEBI, holds the securities of various
Schemes of the fund in its custody. The trustees are vested with the general power of
Superintendence and direction over AMC. They monitor the performance and compliance
of SEBI Regulations by the mutual fund.
SEBI Regulations require that at least two thirds of the directors of trustee company or
board of trustees must be independent i.e. they should not be associated with the
sponsors. Also, 50% of the directors of AMC must be independent. All mutual funds are
required to be registered with SEBI before they launch any scheme. However, Unit Trust
of India (UTI) is not registered with SEBI (as on January 15, 2002).

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ADVANTAGES OF MUTUAL FUNDS:
The following are the major advantages offered by mutual funds to all the investors.
1. Portfolio diversification:
Mutual funds normally invest in a well diversified portfolio or
securities. Each investor in a fund is a part of owner of all of the funds assets.
This enables him to hold a diversified investment portfolio even with a small
amount of investment that would otherwise require big capital.
2. Professional management:
Even if an investor has an big amount of capital available to him, he
Benefits from professional management skills brought by the fund in the
Management of the investors portfolio. The investments management skills
Along with a need ed research into available investment options ,ensure a much
better return than what an investor can manage on his own .
3.Reduction /diversification:
An investor in mutual fund acquires a diversified portfolio, no matter
how small his investment. Diversification reduces the risk of loss, as compared to
investing directly in one or two shares or debentures or other instruments. this
risk reduction is one of the most important benefits of a collective investment
Vehicle like the mutual fund.
4.Reduction of transaction costs:
What is true of risk is also true of the transaction costs .a direct
Investors bears all the costs of investing such as brokerage or custody of
Securities. When going through a fund, he has the benefit of economies of scale;

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The funds pay lesser costs because of larger volumes, a benefit passed on to its
Investors.
5. Liquidity:
Investment in a mutual fund is more liquid .an investor can liquidate
The investment, by selling the units to the fund if open-end, or selling them in
the market if the fund is closed end and collect funds at the end of a specified by
the mutual fund or the stock market
6. Convenience and flexibility:
Mutual fund management companies offer many investor services
that a direct market investor cannot get. Investors can easily transfer their holdings
from one scheme to the other ,get updated market information and so on.
* Drawbacks of Mutual Funds:
1) No Guarantees: No investment is risk free. If the entire stock market declines in value,
the value of mutual fund shares will go down as well, no matter how balanced the portfolio.
Investors encounter fewer risks when they invest in mutual funds than when they buy and
sell stocks on their own. However, anyone who invests through a mutual fund runs the risk
of losing money.
2) Fees and commissions: All funds charge administrative fees to cover their day-to-day
expenses. Some funds also charge sales commissions or "loads" to compensate brokers,
financial consultants, or financial planners. Even if you don't use a broker or other financial
adviser, you will pay a sales commission if you buy shares in a Load Fund.
3) Taxes: During a typical year, most actively managed mutual funds sell anywhere from 20
to 70 percent of the securities in their portfolios. If your fund makes a profit on its sales,

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you will pay taxes on the income you receive, even if you reinvest the money you made.
4)Management risk: When you invest in a mutual fund, you depend on the fund's manager
to make the right decisions regarding the fund's portfolio. If the manager does not perform
as well as you had hoped, you might not make as much money on your investment as you
expected. Of course, if you invest in Index Funds, you forego management risk, because
these funds do not employ managers.

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FREQUENTLY USED TERMS:
Net

Asset

Value

(NAV)

Net Asset Value is the market value of the assets of the scheme minus its liabilities. The
per unit NAV is the net asset value of the scheme divided by the number of units
Outstanding on the Valuation Date
Sale

Price

Is the price you pay when you invest in a scheme. Also called Offer Price. It may include a sales
load
Repurchase Price
Is the price at which a close-ended scheme repurchases its units and it may include a
back-end load. This is also called Bid Price.
Redemption Price
Is the price at which open-ended schemes repurchase their units and close-ended schemes
redeem their units on maturity. Such prices are NAV related
Sales Load
Is a charge collected by a scheme when it sells the units. Also called, Front-end load.
Schemes that do not charge a load are called No Load schemes.
Repurchase or Back-end Load
Is a charge collected by a scheme when it buys back the units from the unit holders.
Sector specific funds/schemes :
These are the funds/schemes, which invest in the securities of only those sectors or industries
as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer
Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the
performance of the respective sectors/industries. While these funds may give higher returns,

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they are more risky compared to diversified funds. Investors need to keep a watch on the
performance of those sectors/industries and must exit at an appropriate time. They may also
seek advice of an expert.
Tax Saving Schemes:
These schemes offer tax rebates to the investors under specific provisions of the Income Tax
Act, 1961 as the Government offers tax incentives for investment in specified avenues. e.g.
Equity Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also
offer tax benefits. These schemes are growth oriented and invest pre-dominantly in equities.
Their growth opportunities and risks associated are like any equity-oriented scheme.
Risks
involved
in
investing
in
mutual
funds.
A very important risk involved in mutual fund investments is the market risk. When the market is
in doldrums, most of the equity funds will also experience a downturn. However, the company
specific

risks

are

largely

eliminated

due

to

professional

fund

management.

Different types of plans that any mutual fund scheme offers


It depends on your investment object, which again depends on your income, age, financial
responsibilities, risk taking capacity and tax status. For example a retired government employee is
most likely to opt for monthly income plan while a high-income youngster is most likely to opt for
growth
plan.

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DIFFERENT TYPES OF MUTUAL FUNDS SCHEMES:


Open-ended Fund /Scheme:
An open-ended fund or scheme is one that is available for subscription and repurchase
on a continuous basis. These schemes do not have a fixed maturity period. investors can
Conveniently buy and sell units at Net Asset Value (NAV) related prices which are
declared on a daily basis. The key feature of open ended schemes is liquidity. The unit
capital of an open-ended mutual fund is not fixed but variable. The fund size and its
total investment amount go up if more new subscription come in from new investors than
redemption by existing investors ; the fund shrinks when redemption of units exceed
fresh subscriptions.
Closed-ended Fund/scheme:
A closed ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund
is open for subscription only during a specified period at the time of launch of the
schemes. Investor can invest in the scheme at the time of the initial public issues and
thereafter they can buy and sell the units of the scheme on the stock exchanges where the
units are listed. In order to provide an exit route to the investors, some close-ended funds
give an option of selling back the units to the mutual fund through periodic repurchase at
NAV related prices. SEBI regulations stipulate that at least one of the two exit routes is
provided to the investor i.e. either repurchases facility or trough listing on stock
exchanges. These mutual funds schemes disclose NAV generally on weekly basis.

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Load and No-load funds.


Marketing of a new mutual fund schemes involves initial expenses . these expenses
may be recovered from the investors in different times. Three usual ways in which a
Funds sales expenses may be recovered from the investor from the investors are:
1. At the time of investors entry into the fund/ scheme, by deducting a specific amount from
his initial contribution.
2. By charging the fund /scheme with a fixed amount each year ,during the stated number of
years ,or
3.

At the time of the investors exit from the fund/scheme, by deducting a specified amount
from the redemption proceeds payable to the investors.

A load is one that charges a percentage of NAV for entry or exit. That is , each time
one buys or sells units in the fund, a charge will be payable . This charge is used by
the mutual fund for marketing and distribution expenses. suppose the NAV per units
Rs.10 if the entry as well as exit load charged is%1, then the investors who buy
would be required to pay Rs.10.10 and those who offer their units for repurchase to
the mutual fund will get only Rs.9.90 per unit. The investors should take the loads
into consideration while making investment as these affect their yields /returns .
However, the investors should also consider the performance track record and
service standards of the mutual fund which are more important .Effective funds may
give higher returns in spite of loads.
A no-load fund is one that does not charge or exit .It means the investors can
enter the funds/scheme at NAV and no additional charges are payable on purchase
or sales of units.
These charges made by the fund managers to the investors to cover
distribution/ sales/ marketing expenses are often called loads . The load charged to
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the investor at the time of his entry into a scheme is called a front end or entry
load. The load charged to the scheme over a period of time is called a deferred
load . the load that the investor pays at the time of his exit is called a back-end
or exit load.
Tax exempt Vs. Non Tax exempt Funds
Generally , when a fund invests in tax-exempt securities , it is called
a tax exempt fund .In the U S A,for ex ,municipal bonds pay interest that is taxfree, while interest on corporate and other bonds is taxable. In India ,after the 1999
Union Government Budget ,all of the dividend income received from any of the
mutual funds is tax free in the hands of the investor. However ,funds other than
Equity funds have to pay a distribution tax, before distributing income to investors .

While Indian mutual funds currently offer tax-free income, any capital gains
arising out of sale of fund units are taxable .All these tax consideration are important
in the decision on where to invest as the tax- exemptions or concessions alter the
returns obtained from these investments.
MUTUAL FUND TYPES:
a) Broad Fund Types by Nature of investments:
Mutual funds may invest in equities, bonds or other fixed income securities, or
short- term money market securities .So we have Euity,Bond and Money Market
Funds. All of them investment in financial assets .But there invest in physical assets.
For ex. We may have Gold or other precious Metals funds or Real Estate Funds.

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b) Broad Fund Types by investment Objective:


Investors and hence the mutual funds pursue different objective while
investing. Thus Growth Funds invest for medium to long term capital apperception.
Value funds invest in equities that are considered under valued today , whose
value will be unlocked in the future.
c) Broad fund Types by Risk Profile:
The nature of a funds portfolio and investment objective imply
different levels of risk undertaken . Funds are therefore often grouped in order of
risk . Thus, Equity Funds have a greater a risk of capital loss than a debt fund that
seeks to protect the capital while looking for income. Money Market Funds are
exposed to less than even the Bonds funds ,since they invest in short- term fixed
income securities, as compared to longer term portfolios of Bond Funds.
Money Market Funds:
Often considered to be at the lowest rung in the order of risk level, Money
Market Funds invest in securities of short-term nature, which generally means
securities of less than one- year maturity .The typical, short-term ,interest bearing
instruments these funds invest in include Treasury Bills issued by
governments,certifactes of Deposit issued by banks and Commercial Paper issued by
companies.In India,Money Market Mutual Funds also invest in the inter-bank call money
market.
Gift Funds:
Gifts are government securities with medium to long- term maturities, typically
of over one year .in India, we have now seen the emergence of Government securities

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or gift funds that invest in government in government paper called dated securities.
since the issuer is the governments/s of India/states these funds have little risk of
default and hence offer better protection of principles .
Debt Funds (Income Funds):
Debt funds invest in debt instruments issued not only by governments,
but also by private companies, banks and financial institutions and other entities such
as infrastructure companies/utilities. By investing in debt ,these funds target low risk
and stable income for the investor as their key objectives. Debt funds are largely
considered as Income funds as they do not target capital appreciation, look for
high current income, and therefore distribute a substantial part of their surplus to
investors. Income funds that target returns substantially above market levels can
face more risks.
a) Diversified Debt Funds:
A debt fund that invest in all available types of debt securities, issued
by entities across all industries and sectors is a properly diversified debt fund.
While debt offer high income and less risk than equity funds, investors need to

recognize that debt securities are subject to risk of default by the issuer on
payment of interest or principal .A diversified debt fund has the benefit of risk
reduction through diversification and sharing of any default losses by a larger
number of investors. Hence a diversified debt fund isles risky than a narrow focus
fund that invest in debt securities of a particular sector or industry.

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b) Focused Debt Funds:
Some debt funds have a narrow focus ,with less diversification in its

Investments.Ex include sector ,specialized and offshore debt funds. These are
similar to the funds described later in the equity category except that debt funds
have a substantial part their portfolio invested in debt instruments and are
Therefore more income oriented and inherently less risky than equity funds. That
debt funds should be automatically considered to be less risky than equity
funds.
c) High Yield Debt Funds:
Usually ,debt funds control the borrower default risk by investing in
Securities issued by borrowers who are rated by credit rating agencies and are
considered to be of investment grade .There are High Yield debt funds that
seek to obtain higher interest returns by investing in debt instruments that are
considered bellow investment grade.Cleraly ,these funds are exposed to higher
risk.
d) Assured Return Funds-an Indian Variant:
Fundamentally ,mutual funds hold assets in trust for investors. All
returns and risks are for account of the investor .The role of the fund manager is
to provide the professional management service and to ensure the highest
possible return consistent with the investment objective of the fund .The fund
manager or the trustees or the sponsors do not give any guarantee on the
minimum return to the investors.

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e) Fixed Term Plan Series-Another Indian Variant:
A mutual fund scheme would normally be either open-end or
close-end .However ,In India, mutual funds have evolved an innovative middle

option the two, in response to investor needs. If a scheme is open-end ,the fund
issues new units and redeems them at any time. The fund does not have a stated
maturity or fixed term of investment as such. Fixed Term Plan series offer a
combination of both these features to investors ,as a series of plans are offered
and units are issued at frequent intervals for short plan durations.
Equity Funds:
Equity funds invest a major portion of their corpus in equity
shares issued by companies, acquired directly in initial public offerings or
through the secondary market .Equity funds would be exposed to the equity
price fluctuation risk at the market level, at the industry or sector level and at
the company- specific level. Equity Funds Net asset Values fluctuate with all
these price movements. they are generally considered at the higher end of the
risk spectrum among all funds available in the market.
a) Aggressive Growth Funds:
As the name suggests , aggressive growth funds target maximum
capital appreciation, invest in less researched or speculative shares and may adopt
speculative investment strategies to attain their objective of high returns for the
investor .consequently ,they tend to be more volatile and riskier than other funds.
b) Growth Funds:

Growth fund invest in companies whose earnings are expected to

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rise at an above average rate. These companies may be operating in sectors like
technology considered to have a growth potential ,but not entirely unproven and
speculative .the primary objective of growth fund is capital appreciation over a

three to five year span . growth funds are therefore less volatile than funds that
target aggressive growth.
C) Specialty Funds:
These funds have a narrow portfolio orientation and invest in only
companies that meet pre- defined criteria. for EX. At the height of the South
African regime, many funds in the U.S.offered plans that promised not to invest in
south African companies. Funds that invest in particular regions such as the
Middle East or ASEAN countries are also an example of specialty funds.
C) I . Sector Funds: Sector funds Portfolios consist of investment in only one
industry or sector of the the market such as Information Technology , Pharmaceuticals or
Fast Moving Consumer goods that have recently been launched in India.
Since sector funds do not diversify into multiple sectors ,they carry a higher level of
sector and company specific risk than diversified equity funds.
C) II. Offshore Funds
These funds invest in equities in one or more foreign countries thereby
achieving diversification across the countrys borders. However they also have additional
risks-such as the foreign exchange rate risk-and their performance depends on the
economic conditions of the countries they invest in. Offshore Equity funds may invest
in a single country or many countries.

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C) III. Small-Cap Equity Funds
These funds invest in shares of companies with relatively lower market
capitalization than that of big ,blue chip companies. They may thus be more volatile than
other funds ,as smaller companies shares are not very liquid in the markets.

We can think of these funds as a segment of specialty funds. Int terms of risk
characteristics, small company funds may be aggressive growth type .
D) Diversified Equity Funds
A fund that seeks to invest only in equities , except for a very small
portion in liquid money market securities ,but is not focused to all equity price risks
,diversified equity funds seek to reduce the sector or stock specific risks through
diversification .They have mainly

market risk exposure. Such general purpose but

diversified funds are clearly at the lower risk level than growth funds.
D) i. Equity Linked Savings Schemes:
In India the investors have given tax concessions to encourage them to
invest in equity markets through these special schemes. Investment in these schemes
entitles the investor to claim an income tax rebate ,but usually has a lock- in period
before the end of which funds cannot be withdrawn. These funds are subject to the
general SEBI investment guidelines for all equity funds, and would be in the
diversified Equity Fund category.
E) Equity Index funds:
An index fund track the performance of a specific stock market index.
The objective is to match the performance of the stock market by tracking an index that

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represents the overall market. The fund invests in shares that constitute the index and
in the same proportion as the index . since they generally invest in a diversified market
index portfolio, these funds take only the overall market risk ,while reducing the sector
and stock specific risks through diversification.
F) Value Funds :
Value Funds have the equity market price fluctuations risks ,but stand often at a
lower end of the risk spectrum in comparison with the Growth Funds. Value stocks
may be from a large number of sectors and therefore diversified. However ,value
stocks may be from a cyclical industries. In the long-term ,value funds ought to be
less risky than growth funds or even Equity Diversified Funds.
G) Equity Income Funds:
There are equity funds that can designed to give the investor a high
level of current income along with some steady capital appreciation, investing
mainly in shares of companies with high dividend yields. These equity funds should
therefore be less volatile and less risky than nearly all other equity funds.
Hybrid Funds Quasi Equity/Quasi debt
There are funds that, however, seek to hold a relatively balanced
holdings of debt and equity securities in their portfolios. Such funds are termed
hybrid funds as they have a dual equity /bond focus. Some of the funds in this
category are described below.
a) Balanced Funds:
A balanced fund is one that is one that has a portfolio comprising debt
instruments , convertible securities , preference and equity shares. Their assets

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are generally held in more or less equal proportion s between debt/money
market securities and equities . By investing in a mix of this nature ,balanced
funds seek to attain the objectives of income ,moderate capital appreciation and
preservation of capital and are ideal for investors with a conservative and longterm

orientation.

b) Growth-and-Income Funds:
Unlike income focused or growth focused funds, these funds seek to
strike a balance between capital appreciation and income for the investor . their
portfolios are a mix between companies with good dividend paying records and
those with potential for capital appreciation these funds would be less risky than pure
growth funds, though more risky than income funds.
C) Asset Allocation Funds:
Normally ,an Equity fund would have its primary portfolio in equities most of the
time .similarly a debt fund would not have major equity holdings .In other words
,their asset allocation is predetermined within certain parameters. However there
do exist funds that follow variable asset allocation policies and move in and out of
an asset class. depending upon their outlook for specific markets.
Commodity Funds:
Commodity funds specialize in investing in different commodities directly or
through shares of commodity companies or commodity futures contracts. Specialized
funds may invest in a single commodity or a commodity group such as edible oils
or grains ,while diversified commodity funds will spread their assets over many commodities.
Real Estate Funds:
Specialized Real estate Funds would invest in Real Estate directly, or may

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fund real estate developers, or lend to them ,or buy shares of housing finance
companies or many even buy their securitised assets. The funds may have a growth
orientation or seek to give investors regular income. There has recently been an
initiative to offer such an income fund by the HDFC.
Regulatory Aspects of Mutual Funds
Schemes of a Mutual Fund

The asset management company shall launch no scheme unless the trustees approve
such scheme and a copy of the offer document has been filed with the Board.

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

The offer document shall contain disclosures which are adequate in order to enable the
investors to make informed investment decision including the disclosure on maximum
investments proposed to be made by the scheme in the listed securities of the group
companies of the sponsor

The mutual fund and asset management company shall be liable to refund the
application money to the applicants,(i) If the mutual fund fails to receive the minimum subscription
amount referred to in clause (a) of sub-regulation (1);
(ii) If the moneys received from the applicants for units are in
excess of subscription as referred to in clause (b) of subregulation (1).

The asset management company shall issue to the applicant whose application has been
accepted, unit certificates or a statement of accounts specifying the number of units
allotted to the applicant as soon as possible but not later than six weeks from the date of

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closure of the initial subscription list and or from the date of receipt of the request from
the unit holders in any open ended scheme.
Rules Regarding Advertisement:

The offer document and advertisement materials shall not be misleading or contain any
statement or opinion, which are incorrect or false.

Investment Objectives And Valuation Policies:

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

General Obligations:

Every asset management company for each scheme shall keep and maintain proper
books of accounts, records and documents, for each scheme so as to explain its transactions

and to disclose at any point of time the financial position of each scheme and in particular
give a true and fair view of the state of affairs of the fund and intimate to the Board the
place where such books of accounts, records and documents are maintained.

The financial year for all the schemes shall end as of March 31 of each year.
Every mutual fund shall have the annual statement of accounts audited by an auditor
who is not in any way associated with the auditor of the asset management company.

Procedure For Action In Case Of Default:

On and from the date of the suspension of the certificate or the approval, as the case
may be, the mutual fund, trustees or asset management company, shall cease to carry on
any activity as a mutual fund, trustee or asset management company, during the period
of suspension, and shall be subject to the directions of the Board with regard to any
records, documents, or securities that may be in its custody or control, relating to its
activities as mutual fund, trustees or asset management company.

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Restrictions On Investments:

A mutual fund scheme shall not invest more than 15% of its NAV in debt instruments

issued by a single issuer, which are rated not below investment grade by a credit rating
agency authorized to carry out such activity under the Act. Such investment limit may be
extended to 20% of the NAV of the scheme with the prior approval of the Board of
Trustees and the Board of asset management company.

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

instruments issued by a single issuer and the total investment in such instruments shall
not exceed 25% of the NAV of the scheme. All such investments shall be made with
the prior approval of the Board of Trustees and the Board of asset management company.

No mutual fund under all its schemes should own more than ten per cent of any
company's paid up capital carrying voting rights.

Such transfers are done at the prevailing market price for quoted instruments on spot basis.

The securities so transferred shall be in conformity with the investment objective of the
scheme to which such transfer has been made.

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

any other mutual fund without charging any fees, provided that aggregate interscheme
investment made by all schemes under the same management or in schemes under the
management of any other asset management company shall not exceed 5% of the net
asset value of the mutual fund.

The initial issue expenses in respect of any scheme may not exceed six per cent of the
funds raised under that scheme.

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

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

mutual fund on account of the concerned scheme, wherever investments are intended to
be of long-term nature.
Pending deployment of funds of a scheme 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.

i.

No mutual fund scheme shall make any investment in;


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

ii Any security issued by way of private placement by an associate or


group company of the sponsor; or The listed securities of group companies of the
sponsor which is in excess of 30% of the net assets [of all the schemes of a mutual fund]

No mutual fund scheme shall invest more than 10 per cent of its NAV in the equity

shares or equity related instruments of any company. Provided that, the limit of 10 per
cent shall not be applicable for investments in index fund or sector or industry specific
scheme.

A mutual fund scheme shall not invest more than 5% of its NAV in the equity shares or

equity related investments in case of open-ended scheme and 10% of its NAV in case
of close-ended scheme.

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ON-LINE PROCEDURE:

IIL / 5p Users

Registered Users
5p investor can use
their trading ID &
Fund
Transfer
(Ledger) password for
availing online Equity
IPO & Mutual Funds.

New User
Registration form
Login ID

Investor has to accept


POA
terms
&
conditions & also need
to send physical copy
of POA by courier or
post ASAP

Password
POA Confirmation
Product
s
MF

IPO

Company

Investor has to
select his/her
correct DP Name
from list & input DP
ID & Beneficiary
account. Allotment
proceeds will be
credited to this DP
Account

DP Details

Scheme Select

No of Shares

Transaction Report

PAN
Card
is
compulsory,
for
investments greater
than or equal to Rs.
50000.

Confirmation Report
Reminder for Documents
Redirect to Payment Gateway

BABASAB PATIL MARKETING PROJECT REPORT

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Growth

of

the

Mutual

Fund

Industry

in

India

The mutual fund industry has seen various phases in India and has evolved over
the last 10 years in a big way. It started in India in 1963 with the setting up of
Unit Trust of India. Its total Assets under Management (AUM) reached a level of
Rs 67 billion by the end of 1988. In 1987 some Public Sector Banks and Insurance
Companies started their own mutual funds and kicked off the second phase in the
mutual fund industry. SBI Mutual Fund, LIC Mutual Fund etc. were few among
them.
The mutual fund industry registered a major milestone in 1993 with the beginning
of first private sector mutual fund. The erstwhile Kothari Pioneer Mutual Fund
(now merged with Franklin Templeton Mutual Fund) was the first private sector
mutual fund registered in July 1993. After that several mutual funds have started
in India, including many international players. The industry has also seen a spate
of mergers and acquisitions, most recently being the acquisition of the schemes of
Alliance

Mutual

by

Birla

Sun

Life

and

Sun

F&C

by

Principal

Mutual.

The latest phase in the evolution of the industry started when Unit Trust of India
(UTI) was bifurcated into two separate entities. The first one is the specified
undertaking of UTI and covers mainly the AUM of US-64 (the first mutual fund
scheme in India) and other assured return schemes. The second is the UTI Mutual
Fund, which manages about 40 schemes and AUM worth Rs 209.76 billion as of
December 2004.While the Indian mutual fund industry has grown in size by about
320% from March, 1993 (Rs 470 billion) to December, 2004 (Rs 1505 billion) in
terms of AUM, the AUM of the sector excluding UTI has grown over 8 times from
Rs.152 billion in March 1999 to Rs.1295 billion as at December 2004 (See Chart 1).

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SECURITIES AND EXCHANGE BOARD OF INDIA

INVESTMENT MANAGEMENT DEPARTMENT

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Equity (Rs in Crores)

Jan 2000March
2000.
April 2000
-March
2001.
April 2001March
2002.
April 2002March 2003
April 2003March 2004
April 2004.
May 2004.
June 2004.
July 2004.
August
2004
September
2004.
October
2004.
November
2004.
December
2004.
January
2005.
February
2005 (upto
19th)
Total (April
'04 - Feb.
'05)

Debt (Rs in Crores)

Gross
Purchase

Gross
Sales

Net
Purchase/
Sales

Gross
Purchase

Gross
Sales

Net
Purchase
/ Sales

11070.54

11492.19

-421.65

2764.72

1864.29

900.43

17375.78

20142.76

-2766.98

13512.17

8488.68

5023.49

12098.11

15893.99

-3795.88

33583.64

22624.42

10959.22

14520.89

16587.59

-2066.70

46663.83

34059.41

12604.42

36663.58
3675.30
4857.15
2130.11
2678.86

35355.67
3894.64
3852.06
2389.96
3149.27

1307.91
-219.34
1005.09
-259.85
-470.41

63169.93
6105.57
4311.55
4066.64
4356.85

40469.18
3653.81
3684.39
5338.14
4006.42

22700.75
2451.76
627.16
-1271.50
350.43

2822.05

2919.88

-97.83

4582.91

3228.22

1354.69

3530.42

3759.18

-228.76

4620.8

3411.59

1209.21

2861.36

3283.24

-421.88

2354.67

2819.14

-464.47

3589.34

4284.71

-695.37

3709.49

2527.27

1182.22

4795.59

5151.50

-355.91

6573.29

3872.69

2700.60

3767.54

3219.83

547.71

5817.59

3137.39

2680.20

2545.81

2716.85

-171.04

5868.19

3726.59

2141.60

37253.53

38621.12

-1367.59

52367.55

39405.65

12961.90

Trends in Transactions on Stock Exchanges by Mutual Funds


(since January 2000)
Trends in Transactions on Stock Exchanges by Mutual Funds

BABASAB PATIL MARKETING PROJECT REPORT

Page No 47

A study of Customer Satisfaction towards Mutual Funds


(Provisional and subject to revision) February 2005
Equity (Rs in crores)
Transactio
n Date
01.02.05
02.02.05
03.02.05
04.02.05
05.02.05
07.02.05
08.02.05
09.02.05
10.02.05
11.02.05
12.02.05
14.02.05
15.02.05
16.02.05
17.02.05
18.02.05
19.02.05
Total

Gross
Purchases
159.50
290.22
195.62
131.16
0.00
109.64
199.20
193.60
198.31
229.54
0.00
240.43
107.62
179.72
108.62
202.63
0.00
2545.81

Gross
Sales
272.45
246.23
211.86
113.52
0.00
195.16
169.55
141.26
148.58
167.90
0.00
195.25
239.60
157.57
205.94
251.98
0.00
2716.85

Debt (Rs in crores)


Net
Purchase
s / Sales
-112.95
43.99
-16.24
17.64
0.00
-85.52
29.65
52.34
49.73
61.64
0.00
45.18
-131.98
22.15
-97.32
-49.35
0.00
-171.04

Gross
Purchas
es
366.45
793.07
767.85
409.49
261.26
378.63
486.78
597.15
350.41
260.32
40.20
174.22
261.86
237.29
318.27
124.81
40.13
5868.19

Gross
Sales
254.61
525.92
280.55
343.13
71.35
191.39
406.32
213.70
449.75
218.11
59.81
46.83
189.49
154.00
193.74
87.80
40.09
3726.59

Net
Purcha
ses/
Sales
111.84
267.15
487.30
66.36
189.91
187.24
80.46
383.45
-99.34
42.21
-19.61
127.39
72.37
83.29
124.53
37.01
0.04
2141.60

ANALYSIS OF CUSTOMER SATISFACTION:


The Sample size selected for the survey was 100 .The respondents are the customers of KARVY

BABASAB PATIL MARKETING PROJECT REPORT

Page No 48

A study of Customer Satisfaction towards Mutual Funds


CONSULTANT STOCK BROCKING LTD. were available for the survey,& their opinion was
taken to know the customer satisfaction towards Mutual Funds.
Q NO .1 Do you believe in savings?
YES

NO

100%

0%

savings
100

Number of
respondents

100
80
60
0

40
20
0

yes
No

1
opinion

Interpretation:
According to the survey we came to know that 100%respondents are believe in savings.
from the selected sample all respondents save their earnings in investing in mutual
funds.So they believe in savings.

Q NO .2 What is the minimum amount you save per month/quarterly/


half- yearly/yearly?

BABASAB PATIL MARKETING PROJECT REPORT

Page No 49

A study of Customer Satisfaction towards Mutual Funds


0-500

500-1000

1000-2000

17

8%

2000-5000

26

17%

5000 above

25

26%

25%

24
24%

Minimum amount of savings


26 25 24

Amount of savings

30
25

17

20
15

0-500
500-1000
1000-2000
2000-5000
5000 above

10
5
0

1
Savings per month

Interpretation:
By conducting survey we came to know about the minimum amount of savings made by
the Respondents 8% of respondents save between 0-500, 17%respondents save
between 500-1000, & 26%of respondents save between 1000-2000, & 25% of the
respondents save between 2000-5000& 24% of respondents save above 5000.So
here maximum Respondents are fall in the category 1000-2000.

3 Q No : As customers while investing in Mutual Funds what factors do you see?


[A]

BABASAB PATIL MARKETING PROJECT REPORT

Page No 50

A study of Customer Satisfaction towards Mutual Funds


1

60

20

10

60%

20%

10%

6%

3%

1%

Saftey
60
60
50
40
30
20
10
0

No of
Responden
ts

20
10

3
5

Saftey 1

1
6

Ranks

Interpretation:
According to the survey we know that 60% of respondents have given first
preference to safety,20% of respondents are given second preference,10%
respondents are given third preference ,6% of respondents are given fourth
preference, as like 5% respondents given fifth ,1% respondents given sixth
preference.

3 [B]
1

28 PATIL
34 MARKETING
20
14
4
BABASAB
PROJECT
REPORT
28%

34%

20%

14%

4%

6
0
0%

Page No 51

A study of Customer Satisfaction towards Mutual Funds

Rate of return 2
28

40
No of
Responden
ts

34
20

30

14

20

10
0

Rate of return 2

Ranks

Interpretation:

According to the survey we came to know that 28% of the respondents have given first
preference to rate of return, 34 % respondents have given second preference
,20% respondents have given third ,14% respondents have given fourth ,4% have
given fifth.

3 [C ]
1

20

18

44

15

2%

20%

18%

44%

15%

1%

BABASAB PATIL MARKETING PROJECT REPORT

Page No 52

A study of Customer Satisfaction towards Mutual Funds

No of Respondents

Liquidity 3
50

44

40
30

20

20
10

18

Liquidity 3

15

0
1

Ranks

Interpretation:
According to the survey we came to know that 2% respondents have given first
preference,20%have Given second, 18% have given third,44%have fourth,15%have given
fifth,1%have given as six.

3 [D]
1

16

37

14

25

6%

16%

37%

14%

25%

2%

BABASAB PATIL MARKETING PROJECT REPORT

Page No 53

A study of Customer Satisfaction towards Mutual Funds

Tax liability 4

No of
Responde
nts

40
35
30
25
20
15
10
5
0

37
25
6

16

14
Tax liability 4

2
1

Ranks

Interpretation:
According to the survey we came to know that 6% of respondents have given first,16%have given
Second,37%have given third,14%have given fourth ,25% have given fifth,2%have
given six preference.

3 [E]
1

13

18

48

10

3%

8%

13%

18%

48%

10%

BABASAB PATIL MARKETING PROJECT REPORT

Page No 54

A study of Customer Satisfaction towards Mutual Funds

Flexibility 5

10

1
2
3
4
5

13

18

48

Interpretation:
According to the survey we came to know that 3% of respondents have given first preference, 85
have given Second,13% have given third,18%have given fourth 48% have given fifth
,10% have given six preference.

3 [F]
1

86

1%

2%

2%

4%

5%

86%

BABASAB PATIL MARKETING PROJECT REPORT

Page No 55

A study of Customer Satisfaction towards Mutual Funds

Others if any 6

No of Respondents

100
90
80

86

70
60
50
40

Others if any 6

30
20
10
0

Ranks

Interpretation:
According to the survey we came to know that 1% of respondents have given first preference, 2%
have given second, 2%have given third,4% have given fourth ,55have given fifth ,86%
have given six preference.

Q No 4 :

In which scheme are your holding your Mutual Fund?

[ I]
Equity

63

63%

Debt

5%

Balanced

30

30%

BABASAB PATIL MARKETING PROJECT REPORT

Page No 56

A study of Customer Satisfaction towards Mutual Funds

Schemes of holding
63
70
60
50

30

40
No of
Response 30

20
10
0

Equity

Debt

Balanced

Types of schemes
Interpretation:
Here the majority of respondents i,e,63% , have chosen Equity
scheme for investing their savings in mutual funds &remaining 5%for debt
& 30%for balanced scheme.

Q No 5 : How do you justify your performance of your service provider for


over Mutual Fund distribution?

Qty services

36

36%

Steady

16

16%

Reach

13

13%

Safety

28

28%

BABASAB PATIL MARKETING PROJECT REPORT

Page No 57

A study of Customer Satisfaction towards Mutual Funds


Nothing in particular

7%

Performance of service provider


7

Nothing in particular

28
13

Services

Saftey
Reach

16

steady

36

Qty services
0

10

20

30

40

Series1

Interpretation:
For measuring the performance of Service provider 36% of respondents have
chosen quality service ,as it indicates that the service provider will give more
quality service to the public.& 16% have chosen steady,13%have chosen reach,28%
have chosen safety ,7% have chosen nothing in particular.
Q No 6: If you are aware of new services, then how do you come to know
Abou t these services?

Friends

12

News papers &Magazines

22

Brokers

26

Agents

37

BABASAB PATIL MARKETING PROJECT REPORT

12%
22%
26%
37%
Page No 58

A study of Customer Satisfaction towards Mutual Funds


Others

3%

Awareness of new services


3
2

60

80

40

37

20

26

22

12

100

120

Level of awareness
Friends
Brokers
Others

News papres&Magazines
Agents

Interpretation:
According to the survey we came to know that the awareness of new service through
Agents is very high because 37% of respondents are aware through agents,26%are
through Brokers,22%are through News papers & Magazines ,12%through
Friends,3% through others. so the majority of the respondents are aware from
agents.
Q No 7:

Overall, How would you rate Mutual Fund scheme?

Interpretation:

Extremely good

62

Very good

29

Neither good/bad

Very bad

Extremely bad

62%
29%
8%
1%
0%

According to the survey we came to know that overall rating of mutual fund scheme is that
BABASAB PATIL MARKETING PROJECT REPORT

Page No 59

A study of Customer Satisfaction towards Mutual Funds


62% of the respondents have chosen Extremely good ,29%have chosen very good
,8% have chosen Neither good / Bad ,1% have chosen very bad.
So finally the Majority of the respondents say that this mutual fund scheme is
Extremely good.
Q No 8 :

Overall how do you Rate the services of Your Financial


Service Provider?

0%

0%

20%

6%

40%

24

24%

60%

45

45%

80%

21

21%

100%

4%

Overall Rating of services

6
33%

1 2
0%7%

3
13%

4
20%
5
27%

Interpretation:

BABASAB PATIL MARKETING PROJECT REPORT

Page No 60

A study of Customer Satisfaction towards Mutual Funds


From this survey we can see that overall rating the Services of Financial Service
Provider in terms of Percentage is that, 40% of respondents are chosen 60%because
They are satisfied up to 60%,24% respondents have satisfied 40%,21% respondents
Have satisfied 80%,6%respondents have satisfied 20%,4%respondents have
Satisfied 100% respectively.
Q NO 9: Express your level of satisfaction about the following schems/services.
[I]

MS

NE S/US

MUS

US

46

35

16

46%

35%

16%

3%

0%

Mutual fund
46
50

35

40
No of
30
Responde
20
nts
10
0

16
3

S MS NE
S/US

Mutual fund

MUS US

Opinion

Interpretation:

BABASAB PATIL MARKETING PROJECT REPORT

Page No 61

A study of Customer Satisfaction towards Mutual Funds


From this we will see that about M UTUAL FUND scheme the level of satisfaction of the
respondents is that 46% of respondents are satisfied,35% respondents are Mostly
satisfied, 16% respondents are Neither satisfied/unsatisfied,3%respondents are
Mostly unsatisfied. Hence the majority of the respondents is satisfied with the scheme.
[II]
S

MS

NE S/US

MUS

US

40

12

46

40%

12%

46%

2%

0%

Tax

20
40
46

12

Interpretation:
From this we will see that about TAX scheme, Most of the respondents arei,e,46%
are Neither satisfied/unsatisfied about the scheme, 40% are satified,12% are
Mostly satified,2%are Mostly satisfied .so the majority of the respondents have
BABASAB PATIL MARKETING PROJECT REPORT

Page No 62

A study of Customer Satisfaction towards Mutual Funds


Chosen they are Neither satisfied or un satisfied about the scheme

[III]
S

MS

NE S/US

MUS

US

33

15

50

33%

15%

50%

2%

0%

Insurance
50

No of
Responden
ts

50
40
30
20
10
0

33
15
2

0
Insurance

MS NE
S/US

MUS US

Opinion

From this survey it is clear that about INSURANCE Scheme 50%of the respondents
are neither satisfied or unsatisfied about the scheme,33% of respondents are
BABASAB PATIL MARKETING PROJECT REPORT

Page No 63

A study of Customer Satisfaction towards Mutual Funds


satisfied,15%are Mostly satisfied,2% are Mostly satisfied. Finally we will see that
majority is 50%.

[IV]

MS

NE S/US

MUS

US

38

10

45

38%

10%

45%

5%

2%

38

45

Bonds
2
S

S
M
U

S/
U

M
S

10

50
40
30
20
10
0
S

No of Respondents

Bonds

Opinion

Interpretation:
From this it is clear that the level of satisfaction about BONDS is that
45%respondents are Neither satisfied or un satisfied,38%are satisfied, 10%are
BABASAB PATIL MARKETING PROJECT REPORT

Page No 64

A study of Customer Satisfaction towards Mutual Funds


Mostly satisfied,5%are Mostly unsatisfied,2% unsatisfied about the bond schemes.

[V]

MS

NE S/US

MUS

US

62

12

25

62%

12%

25%

1%

0%

Equity IPO
80
60
No of
Respondent 40
s
20
0
Equity IPO

MS

NE

MUS

US

62

12

25

Opinion

Interpretation:
BABASAB PATIL MARKETING PROJECT REPORT

Page No 65

A study of Customer Satisfaction towards Mutual Funds


From this we know that the level of satisfaction about the Equity IPO is that 62% of
the respondents are satisfied about the scheme,12% are Mostly satisfied, 25%are
Neither satisfied or unsatisfied,1% are Mostly unsatisfied. So finally the majority of
respondents are satisfied about the schemes .

Code sheet Customer Response

S NO

Q1 Q2a Q3a Q3b Q3c Q3d Q3e Q3f Q4 Q5 Q6 Q7

Q8 Q9a Q9b Q9c Q9d Q9e

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

2
3
3
1
3
4
5
3
5
5
3
4
3
5
4
5
4
3
5
2
2
2
5
4
4
3
5
3
5
4
3

1
6
1
1
1
1
1
5
1
1
1
1
2
1
1
1
1
1
2
1
1
2
2
1
5
2
1
1
1
2
1

1
1
2
2
4
1
2
1
2
3
3
2
1
1
2
2
3
3
1
2
4
1
3
5
1
1
5
3
2
1
2

3
2
5
2
2
5
4
4
5
3
4
4
4
4
3
5
5
5
4
4
4
4
4
2
4
4
2
4
5
4
4

5
3
3
3
5
4
5
2
3
5
5
3
3
3
4
3
2
2
3
3
5
3
3
3
3
3
4
2
4
5
3

6
5
6
4
5
6
6
4
5
4
2
3
5
6
5
4
4
4
6
5
2
5
5
5
2
5
3
5
3
3
5

4
4
5
6
6
2
3
3
6
6
6
6
6
6
6
6
4
6
6
6
6
6
6
6
6
6
6
6
6
6
6

1
3
1
1
3
1
1
1
1
1
1
1
3
1
2
1
2
1
1
1
1
3
1
1
3
1
1
3
1
1
3

5
1
2
1
1
4
2
2
1
1
4
2
3
1
4
1
3
1
2
1
1
2
3
1
2
3
2
1
3
1
1

1
4
3
3
2
4
4
1
2
3
1
2
1
4
1
2
3
4
2
4
2
4
2
4
1
4
2
4
4
3
2

3
2
1
1
2
1
1
3
1
2
1
1
2
1
1
1
2
2
1
2
1
2
2
1
4
1
2
1
2
1
1

3
4
4
3
5
4
3
3
5
5
3
3
4
4
4
4
5
4
2
4
3
4
5
4
3
5
5
3
4
4
4

1
2
2
1
1
2
4
3
1
2
2
1
2
2
1
2
2
1
1
1
3
2
1
1
4
3
2
1
1
2
1

1
1
1
1
3
1
1
1
2
1
3
1
3
1
3
2
3
1
1
3
3
3
3
3
3
3
2
3
3
3
3

2
3
1
4
2
1
2
3
2
3
1
2
3
3
3
2
3
1
2
3
1
3
3
2
3
3
2
3
3
3
1

1
4
1
3
2
3
1
3
1
3
5
1
3
3
3
3
4
2
3
3
3
3
3
3
4
3
2
3
3
3
1

1
3
1
2
2
1
3
1
1
1
2
1
1
1
1
3
1
2
1
1
3
1
3
3
4
3
2
1
3
1
1

BABASAB PATIL MARKETING PROJECT REPORT

Page No 66

A study of Customer Satisfaction towards Mutual Funds


33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

4
3
5
3
5
4
2
2
4
4
4
3
3
3
3
4
3
5
4
2
4
2
4
3
2
5
5
4
4
4
1
5
4
4
4
5
1
4
5
3
2
3
2
5
5
2
1
3
3
2
2

1
2
1
2
1
1
1
1
3
4
3
2
1
3
1
2
2
2
1
1
1
1
2
1
1
2
1
3
2
2
2
1
1
1
1
1
1
2
1
1
4
3
4
1
1
3
4
2
1
1
1

3
1
4
1
2
5
2
4
1
1
2
1
4
1
4
1
1
5
3
3
3
2
1
2
2
4
2
4
1
1
3
2
2
2
2
2
3
1
2
2
2
4
1
2
2
1
3
1
3
3
4

2
4
5
4
4
3
4
2
2
2
4
4
3
4
2
4
3
6
2
4
2
3
4
5
4
3
3
5
4
4
1
5
3
4
4
4
4
4
4
3
1
2
3
4
4
2
5
4
2
4
5

5
5
3
3
6
5
3
3
4
5
5
3
2
2
4
3
5
3
4
2
5
4
5
3
5
5
4
1
3
5
4
4
4
3
3
3
2
5
3
5
3
1
2
3
3
4
2
3
4
2
3

4
3
2
5
4
2
5
5
5
3
2
5
5
5
5
5
4
1
5
5
4
5
3
4
3
6
5
2
5
3
5
3
5
5
5
5
5
3
5
4
5
5
5
5
5
5
3
6
5
5
2

6
6
6
6
5
6
6
6
6
6
6
6
6
6
6
6
6
2
6
6
6
6
6
6
6
1
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
6
5
6
6
6

1
1
2
1
1
1
1
3
1
1
1
1
1
1
2
1
1
3
1
3
1
1
1
1
1
1
1
1
3
1
1
3
1
1
1
1
1
3
1
3
1
3
1
1
1
2
1
1
2
1
1

3
1
2
4
3
2
1
1
4
2
1
1
4
2
1
1
4
1
3
4
4
2
1
3
2
5
5
2
4
3
4
4
4
3
4
4
3
4
4
1
2
1
3
1
1
5
4
3
1
2
1

4
2
2
4
3
4
3
4
3
4
3
3
3
3
4
3
3
1
5
2
4
2
2
2
3
2
2
2
1
1
1
4
4
3
3
4
3
3
4
2
4
1
3
4
4
5
3
3
2
3
1

2
1
1
1
2
1
1
2
1
2
1
1
1
1
2
1
2
1
1
1
3
1
2
1
2
2
1
1
3
2
1
2
1
1
2
1
2
1
1
2
1
1
1
1
3
1
3
1
3
2

BABASAB PATIL MARKETING PROJECT REPORT

4
4
2
4
6
5
4
3
4
5
5
3
2
3
4
4
4
5
2
4
2
2
3
5
4
4
4
4
3
3
4
5
4
4
6
5
2
4
5
5
4
5
6
2
5
3
3
3
5
3
4

2
2
3
3
3
2
2
1
2
2
2
3
1
3
1
1
2
1
1
2
1
1
1
1
2
1
2
1
1
3
1
2
1
1
2
2
1
1
2
2
1
2
2
1
2
1
1
3
2
3
1

1
1
2
2
3
3
3
3
3
1
3
4
3
3
3
3
3
3
3
2
3
1
3
1
2
1
1
2
2
3
3
3
1
1
1
1
3
2
1
3
3
3
1
3
1
3
1
3
1
1
3

1
3
2
1
3
3
3
3
3
1
3
3
3
3
3
3
3
1
3
3
3
1
3
1
2
1
1
2
3
3
3
3
1
1
1
1
1
2
1
3
3
3
1
3
1
3
1
3
3
1
3

3
3
2
1
3
1
3
3
3
1
3
3
3
3
3
3
3
1
3
3
3
1
3
1
2
1
1
1
3
3
3
3
1
1
1
1
1
2
3
3
3
1
1
3
1
1
1
3
3
1
3

1
1
2
1
1
1
1
3
1
1
1
1
3
1
1
1
1
3
1
2
3
1
3
1
2
1
1
1
3
1
2
3
1
1
1
1
1
1
3
3
3
1
1
3
1
1
1
1
3
1
3

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A study of Customer Satisfaction towards Mutual Funds


84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

1
5
3
1
3
1
5
4
3
3
4
5
2
1
2
5
2

3
1
1
1
3
1
4
1
5
3
1
3
4
2
1
1
1

1
3
3
2
4
4
2
3
4
4
3
2
1
3
2
2
2

5
2
4
4
2
3
3
2
2
2
4
5
3
4
4
3
3

2
5
2
3
1
2
1
5
3
1
2
1
2
5
6
5
5

4
4
5
5
5
5
5
4
1
5
5
4
6
1
3
4
6

6
6
6
6
6
6
6
6
6
6
6
6
5
6
5
6
4

3
1
1
3
1
3
1
2
1
1
1
2
1
1
2
1
1

1
1
1
1
3
3
1
2
2
4
1
1
2
4
2
1

3
3
5
3
2
1
3
3
4
4
2
1
2
1
2
3
1

3
1
2
1
1
3
2
3
2
1
3
1
2
2
3
1
3

3
6
2
3
3
2
4
3
5
4
2
5
3
4
3
4
3

1
2
4
1
3
3
1
1
2
2
3
2
1
2
1
1
1

1
1
1
1
3
3
3
4
1
1
3
3
3
1
1
2
1

1
1
1
1
3
3
4
3
1
1
2
3
1
1
3
3
2

1
1
1
1
3
3
4
3
1
1
3
1
1
5
3
1
1

1
1
3
1
3
3
1
3
1
1
1
1
1
2
3
2
1

Recommendations

Findings & suggestions:


1.I have carried out this exercise on Mutual Funds. With So in my studies I have tried to see
whether the customer have satisfied with the services given by the Karvy consultants Ltd.
2. .It is also came to know that new customer are not aware of the schemes available in mutual
funds
3. I have also seen that 37% awareness of new service given by Karvy Stock Broking

Ltd is

from mainly through Agents.


4. It is also find that more than46% customers are satisfied and 355 of customers are mostly
satisfied with the service of mutual funds given by Karvy consultants ltd.
5. Nearly 16% of the respondents are neither satisfied or un satisfied because of the lack of
attention given to them for their enquires.
6. 3% of customers are mostly unsatisfied with the service because the reason is that
lack of updated information.
7. 36% of respondents prefer Karvy consultants Ltd because of their Quality services given by
them .
8.62% of the respondents opinion is that mutual fund scheme is Extremely Good.
9. Majority of the respondents are very happy with the services given by Karvy agents.
BABASAB PATIL MARKETING PROJECT REPORT

Page No 68

A study of Customer Satisfaction towards Mutual Funds

Suggestions:

QUESTIONNAIRE

NAME

ADDRESS

E-MAIL

MOBILE NO

AGE

ANUUAL INCOME :

PH NO:
18-25
1 lack 5lack

26-50

50 &Above
5lack-8 lack

BABASAB PATIL MARKETING PROJECT REPORT

8 lack & above

Page No 69

A study of Customer Satisfaction towards Mutual Funds


1)

Do you believe in savings?


Yes

No

2) What is the minimum amount you save per month/quarterly/half-yearly/yearly?


0-500

500-1000

1000-2000

2000-5000

5000 above

3) As customers while investing in Mutual Funds what factors do you see?


(Rank them No 1 for Preferred and No 6 for Least Preferred )

Safety

Rate of Return

Liquidity

Tax Liability

Flexibility

Others if any

4) In which scheme are your holding your Mutual Fund?


Equity

Debt

Balanced

5) How do you justify your performance of your service provider for over Mutual Fund
distribution?
Qty services
Steady
Reach
Safety
Nothing
in
Particular

6) If you are aware of new services, then how do you came to know about these services?
Friends

News
Papers& Brokers
Magazines

Agents

Others

7) Overall, How would you rate Mutual Fund scheme?

BABASAB PATIL MARKETING PROJECT REPORT

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A study of Customer Satisfaction towards Mutual Funds


Extremely
good

Very good

Neither
good/bad

Very bad

Extermely bad

8) Overall how do you Rate the services of Your Financial Service Provider?
0%

20%

40%

60%

80%

100%

9) Express your level of satisfaction about the following schems/services.pleaseTick ( ) the


following.
Satisfied
Mostly
un Neither
Mostly Un Unsatisfied
Satisfied
satisfied/Un Satisfied
satisfied
Mutual
Fund
Tax
Insurance
Bonds
Equity
IPO
10) Any Suggestion for Your Financial Advisory Services.
---------------------------------------------------------------------------------------------------------------------------

Thank you.

Recommendations

Findings & suggestions:


1.I have carried out this exercise on Mutual Funds. With So in my studies I have tried to see
whether the customer have satisfied with the services given by the Karvy consultants Ltd.
2. .It is also came to know that new customer are not aware of the schemes available in mutual
funds
3. I have also seen that 37% awareness of new service given by Karvy Stock Broking
from mainly through Agents.

BABASAB PATIL MARKETING PROJECT REPORT

Page No 71

Ltd is

A study of Customer Satisfaction towards Mutual Funds


4. It is also find that more than46% customers are satisfied and 355 of customers are mostly
satisfied with the service of mutual funds given by Karvy consultants ltd.
5. Nearly 16% of the respondents are neither satisfied or un satisfied because of the lack of
attention given to them for their enquires.
6. 3% of customers are mostly unsatisfied with the service because the reason is that
lack of updated information.
7. 36% of respondents prefer Karvy consultants Ltd because of their Quality services given by
them .
8.62% of the respondents opinion is that mutual fund scheme is Extremely Good.
9. Majority of the respondents are very happy with the services given by Karvy agents.

Suggestions:

Glossary on Mutual Funds:


Account
Statement
A physical document, similar to a bank account statement, representing the mutual fund units
owned. Issued to the unitholder every time he/she carries out a transaction.
Annual
Report
Unabridged financial results that comprise historical per unit statistics and complete portfolio of
schemes of a mutual fund for a certain period. It is sent to unit holders once in a year.
Appreciation
An increase in an investments value.

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A study of Customer Satisfaction towards Mutual Funds


Asset
Allocation
The process of diversifying investments among different types of assets like stocks, bonds and
cash in order to optimize risk / return tradeoff based on a persons financial situation and goals.
Asset
Class
Different types of investments such as stocks, bonds, real estate and cash.
Asset
Management
Company
A firm that invests the pooled funds of retail investors in securities in line with the stated
investment objectives. For a fee, the investment company provides more diversification, liquidity,
and professional management service than is normally available to individual investors.
Asset-Backed
Security
A debt instrument backed by loan paper or accounts receivable from banks, companies or other
providers of credit.
Assets
An item of value owned by an individual or an organization. It could be stocks, cash, house or a
car.
Automatic
Investment
Plan
Periodic investment of a fixed amount by a unitholder, either directly from his bank account or by
issuing post-dated cheques, in his mutual fund account. It allows the investor to benefit from rupee
cost averaging.
Automatic
Withdrawal
Plan
Allows an investor to receive periodic payments of fixed amount or units from his investment in a
mutual fund scheme. Retirees who want a regular income supplement often choose this.
Average
Portfolio
Maturity
The average maturity of all the bonds in a bond funds portfolio.
Back-End/
Redemption
Load
One of two possible sales charge imposed by funds that charge fees. Redemption load is a charge
an investor pays when units are redeemed or sold back to the fund. It sometimes depends on how
long the investment is held -- generally the longer the time period, the smaller the charge.
Balanced
Scheme
A mutual fund scheme with an investment objective of both long-term growth and Income, through
investment in stocks and bonds. Typically, the stock-bond ratio ranges around 60%-40% in an
effort to obtain the highest returns consistent with a low risk strategy.
Basis
Point
(BP)
The smallest measure used in quoting yields on fixed income securities. One basis point is one
percent of one percent, or 0.01%.

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A study of Customer Satisfaction towards Mutual Funds


Bear
Market
A prolonged period of falling securities prices in a stock market.
Benchmark
A standard used for comparison. Usually to provide a point of reference for evaluating a fund's
performance. The common benchmarks for equity-oriented funds is the BSE 200 index or the BSE
Sensex.
Beta
A measure of a funds volatility in relation to the stock market, as measured by a stated index. By
definition, the beta of the stated index is 1; a fund with a higher beta has been more volatile than
the market, and a fund with a lower beta has been less volatile than the market. Based on past
historical records, a beta higher than 1.0 indicates that when the market rises, the stock will rise to
a greater extent than that of the market; likewise, when the market falls, the stock will fall to a
greater extent. A beta lower than 1.0 indicates that the stock will usually change to a lesser extent
than that of the market. The higher the beta, the greater the investment risk.
Blue chip
Stock of a nationally known company that has a long record of profit, growth, and dividend
payment, and a reputation for quality management, products, and services.
Bond
A debt security, or an IOU, issued by a company or government agency. A bond investor lends
money to the issuer and, in exchange, the issuer promises to repay the loan amount on a specified
maturity date; the issuer usually pays the bondholder periodic interest payments over the period of
the loan.
Bond Scheme
A scheme that invests primarily in bonds with the general emphasis on income over growth.
Bottom-Up
An investment strategy that first seeks individual companies with attractive investment potential,
then considers the economic and industry trends affecting those companies.
Bull
Market
A prolonged rise in the price of stocks, bonds or commodities characterized by high trading
volumes.
Business Day
A Business Day is any day other than a Saturday, a Sunday or a day on which banks are not
required or obligated by law or executive order to remain closed including the occasions when the
functioning of the Banks/ RBI is affected due to a strike call made by a Recognized Union/
Management at any part of the country.
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Call money
Money which is loaned in the call market, which can be demanded for repayment on call, which
basically means immediately. The term call money is also known as money at short notice as it is
repayable in 24 hours. It is also traded in the money market.
Call
Risk
The risk that bonds will be redeemed (or "called") before maturity. This possibility increases
during periods of falling interest rates.
Capital
Appreciation
An increase in the value of an investment, measured by the increase in a fund unit's value from the
time of purchase to the time of redemption.
Capital
Gain
The amount by which an investments selling price exceeds its purchase price.
Capital
Market
A market where debt or equity securities are traded.
Certificate of Deposit (CD)
Short-term debt instrument issued by scheduled commercial banks excluding regional rural banks.
They are unsecured instruments that mature between three months to one year.
Compounded Annualized Growth Return (CAGR)
When you deposit money in a bank it earns interest. When that interest also begins to earn interest
the result is compound interest. Compounding occurs if bond income or dividends from stocks or
mutual funds are reinvested. Because of compounding the money has potential to grow much
faster.
Contingent
Deferred
Sales
Charge
(CDSC)
A type of back-end sales load charged when shares are redeemed within a specific period
following their purchase. Usually assessed on a sliding scale, these charges reduce, the longer the
units are held.
Closed-End
Scheme
A mutual fund scheme that offers a limited number of units which have a lock-in period, usually of
three to five years. ELSS schemes are closed-ended schemes. The units of closed-end funds are
often listed on one of the major stock exchanges and traded like securities at prices which may be
higher or lower than its net asset value
Commercial
Paper
Debt instruments issued by corporations to meet their short-term financing needs. Such
instruments are unsecured and have maturities ranging from 15 to 365 days.

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A study of Customer Satisfaction towards Mutual Funds


Commission
A fee charged by a broker or distributor for his/her service in facilitating a transaction.
Compound
Interest
Interest earned not only on the initially invested principal but also on accumulated interest during
the period.

Consumer Price Index


The index compiled by a governmental agency which follows the cost of living by following the
changes in price of basic goods and services over time. This index measures inflation.
Convertible security
Corporate security (usually preferred stock or bond) that is exchangeable for another form of
security (usually common stock) at a predetermined price.
Coupon
Interest rate on a debt security that the issuer promises to pay to the holder until maturity. Usually
expressed as a percentage of the face value of the security.
Credit
Rating
A measure of a bond issuer's creditworthiness or the ability to repay the loan as rated by an
independent rating agency, such as CRISIL, ICRA and CARE.
Credit
Risk
The possibility that a bond issuer will default, and fail to repay principal or interest as promised.
Also known as "default risk."
Cumulative
Quantitative
Discount
(CQD)
Cumulative quantitative discount (CQD) is discount on sales load to investors on increasing
purchase of units.
Cumulative total return
Usually calculated in the same manner as standardised average annual total return, except that
these figures represent the total change in value of an investment over the stated periods and do not
reflect any sales charges
Current assets
Assets that can be converted to cash within a year.

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A study of Customer Satisfaction towards Mutual Funds


Current liabilities
Liabilities that must be paid within a year.
Currency
Risk
The possibility that fluctuating currency exchange rates will affect the rupee value of an
investment.
Custodian
The organization (usually a bank) that keeps and safeguards the custody of securities and other
assets of a fund.
Cyclical stocks
Stocks which rise and fall in price with the state of the economy, in such industries as construction,
automobile, engineering or those affected by the international economy such as shipping, aviation,
and tourism. Cyclical stocks are also stocks which are affected by the natural environment such as
fertilizers and tea. Examples of non-cyclical stocks would be drugs, insurance, basic foodstuffs and
many other consumer products.
Debentures
Instruments of debt, usually unsecured. They are also usually credit rated.
Debt funds/ securities
A general term for any security representing money loaned that must be repaid to the lender at a
future date. Bonds,T-notes, T-bills and money market instruments are debt securities, but they vary
in maturities.
Default
A term that denotes the failure to pay the principal or interest on a financial obligation (such as a
bond).

Derivative
Financial instrument whose value is based on the value of another underlying security.
Depreciation
A decline in an investment's value.
Discount
Refers to the selling price of a bond when its price is below its maturity value.
BABASAB PATIL MARKETING PROJECT REPORT

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A study of Customer Satisfaction towards Mutual Funds


Distribution
The payment of dividends to unit holders by a mutual fund.
Diversification
The strategy of spreading investments among different securities to reduce risk. By nature, mutual
funds are a diversified investment.
Dividend
When companies pay part of their profits to the shareholders those profits are called dividends. A
mutual funds dividend is money paid to shareholders from investment income the fund has
earned. The amount of each shares dividend depends on how well the company does.
Dividend
Reinvestment
A unitholder service that allows dividend distributions to be reinvested automatically to purchase
more fund units.
Dow Jones Industrial Average
The oldest and most quoted measure of stock market price movements, an indicator showing how
the market is going. It is a price-weighted average of 30 actively traded blue chip stocks.
Earnings (per share)
The net income for a company during a specific period. It is calculated by subtracting the cost of
sales, operating expenses and taxes from revenues, for a specific time period. It is the reason
corporations exist and often the single most important determinant of a stocks price.
Equity
Schemes
A scheme that invests primarily in stocks while seeking to provide relatively high long-term
growth of capital.
Ex-Dividend
Date
The date following the record date for a scheme. When a fund's net asset value reduces by an
amount equal to a dividend distribution.
Expense
Ratio
A fund's operating expenses, expressed as a percentage of its average net assets.
Face value
The value printed on the face of a stock, bond or other financial instrument or document.
Family
Of
Schemes
A set of schemes with different investment objectives from a single asset management company
usually allowing investors to switch
their investments from one scheme to another at a no charge or a nominal charge.

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A study of Customer Satisfaction towards Mutual Funds


FCNR
A Fully Convertible Non-Rupee account that can be opened for funds coming in from abroad or
from local funds. The funds in the account are held in a foreign currency.
Fixed assets
A long-term asset that will not be converted to cash within a year such as a house or a plot of land.
Fixed deposit
An investment instrument where you invest a fixed amount of money for a fixed period of time at
a fixed rate of interest.
Fixed
Income
Security
A security that pays a fixed rate of interest such as a bond but do not offer an investor much
potential for growth.
Front-End
Load
A one-time charge that an investor pays at the time of buying units of a scheme.
Fixed rate
A loan in which the interest rates do not change during the entire term of the loan.
Floating rate
An interest rate which is periodically adjusted, usually based on a standard market rate outside the
control of the institution. These rates often have a specified floor and ceiling, which limit the
floating rate. The opposite of having a floating rate is having a fixed rate.
Floor
A lower limit for a price, interest rate, or other numerical factor. The price at which a stop order is
activated (an order to buy or sell at the market when a definite price is reached either above (for a
buy) or below (for a sell) the price that prevailed when the order was given). Also the area of a
stock exchange where active trading occurs.
Fully
Invested
The investment of nearly all available assets in securities as per the stated objective of the scheme
and having no cash or cash equivalents in ones portfolio.
Fund
Manager
The individual responsible for making portfolio decisions for a mutual fund.
Government securities

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A study of Customer Satisfaction towards Mutual Funds


Securities that are sold to the public by the government, for example, bonds.
Growth
An investment objective of equity funds which seek to provide capital gains, rather than dividend
income.
Growth funds
Mutual funds with a primary investment objective of long-term growth of capital. Unlike income,
which is somewhat regular and consistent in most cases, growth is much less certain. Growth
investments, however, usually outpace the returns on income investments over the long-term (five
to ten years, or longer). It invests mainly in common stocks with significant growth potential.
Growth
Investing
An investment style that seeks stocks with the belief they will go up in price, regardless of the
stock's current price relative to its underlying value. Often discussed in contrast to value investing
Holdings
The possessions or securities in an investors portfolio.
Historical
Yield
Yield provided by a scheme, typically a money market fund, over a specific time period.
Inception
Date
The date when a schemes initial offering period ends and the schemes formation takes place.
Income
/Debt
Scheme
A scheme that invests primarily in fixed income securities. Typically, income schemes seek to
provide current income rather than growth of capital.
Index
A benchmark against which the performance of a scheme is measured. Usually, equity funds use
BSE 30 or BSE 200 as the benchmark. For fixed-income funds it is a bond index. The benchmark
index must consist of securities similar to which the scheme invests in.
Index
Fund
A fund that tries to mirror the performance of an index by investing in securities making up that
index. (note: it is not possible for investors to actually invest in the actual index, such as the BSE
30).
Inflation
Risk
The possibility that the value of assets or income will be eroded by inflation affecting the
purchasing power of a currency. Often mentioned in relation to fixed income funds as while they
may minimize the possibility of losing principal, they expose an investor to inflation risk.

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A study of Customer Satisfaction towards Mutual Funds


Initial
Public
Offer
(IPO)
The first sale of units of a scheme by a mutual fund to the public. Usually, for a fixed time period.
Interest rate risk
The risk that a securitys value will change due to an increase or decrease in interest rates. A bonds
price will always drop as interest rates rise and when interest rates fall, a bonds price will rise.
Investment
Grade
High quality bonds that are rated AAA or higher by a rating agency. Investment grade bonds are
considered safe. However, the higher the bond's rating, the lower the interest it offers.
Investment
Objective
A schemes investment goal. Say, a growth scheme typically has an investment objective of
providing long-term growth of capital.
Load
A one-time sales charge paid by an investor while buying or selling units of a scheme. Typically,
there are two types of loads front-end charged at the time of purchase and back-end charged at the
time of redemption.
Liabilities
The claims of investors who have loaned to a company. The debts of a company.
Liquidity
The ease with which an investment can be converted into cash or cash equivalents. Mutual fund
units are generally considered highly liquid investments as they can be sold on any business day at
their current net asset value
Listed
Securities which are traded and listed in any of the approved Stock Exchanges of India will be
treated as listed security.
Lock-in period
A period of time during which the investor is restricted from selling a particular investment.
Management
Fee
The amount a scheme pays to its asset management company for its services. Typically, a certain
percentage of assets under management. A fund's management fee is listed in its offer document.
Market risk

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The potential loss that is possible as a result of short-term volatility of the stock market, indicated
by beta. Owning mutual fund shields an investor to some market risk that a stockholder may be
vulnerable to because of their diversification.
Market
Timing
Attempting to time the purchase and sale of securities or mutual fund units to coincide with market
conditions.
Maturity
Date
The date on which the principal amount of a bond is to be paid in full.
Maturity value
The amount the issuer agrees to pay out when the bond reaches its maturity date.
Minimum
Purchase
The smallest investment amount a scheme will accept to open a new unitholder account.
Money
Market
Fund
A fund that invests in the short-term, high-grade securities sold in the money market including
government securities, treasury bills, certificates of deposit, and commercial paper.
Mutual
Fund
An investment company through which an investor can pool his money with other investors who
have a similar objective. Professional investment managers, then invest the pool in securities
which in their judgement will help investors achieve their objective. Mutual funds offer the
benefits of portfolio diversification (which provides greater safety and reduced volatility),
professional management, liquidity and convenience.
Net
Asset
Value
(NAV)
The market value of a mutual fund unit. It is calculated daily by taking the funds total assets,
securities, cash and any accrued earnings, deducting liabilities, and dividing the remainder by the
number of units outstanding.
Net
The net worth of a fund.

Assets

Net profit margin


A measure of a companys profitability and efficiency calculated by dividing a measure of net
profits (operating profit minus depreciation and income taxes) by sales.
Net worth
The value found by subtracting total liabilities from total assets.

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No
Load
Fund
A fund that sells its units to investors without a sales load/charge.
NRE
A Non-Resident External Rupee account that NRIs can open with any Indian bank. They can use
this account for making investments in India on a repatriable basis.
NRI
A Non-Resident Indian who is an Indian citizen or a person of Indian origin but who resides
abroad. NRIs have to follow specific rules when investing in India.
NRO
An Ordinary Non-Resident Rupee account which can be opened for funds coming in from abroad
or from local funds. The amount in the account is, however, non-repatriable.
Offer
Document
/
Prospectus
A legal document, that describes a mutual fund scheme. It contains information required by the
Securities and Exchange Board of India explaining the offer, including the terms, issuer,
objectives, historical financial statements, and other information that could help an individual
decide whether the investment is appropriate for him.
Offering price
The price at which mutual fund shares are offered for sale to the public. Also known as offering
price. The public offering price represents the net asset value plus any applicable initial sales
charges.
Open-Ended
Scheme
A scheme where investors can buy and redeem their units on any business day. Its units are not
listed on any stock exchange but are bought from and sold to the mutual fund.
Operating
Expenses
The day-today costs a mutual fund incurs in conducting business, such as for maintaining offices,
staff, and equipment. These expenses are paid from the fund's assets before any earnings are
distributed.
Performance
A measure of how well a fund is doing. Typically, mutual fund performance measures are yield
(for dividends) and total return (which measures dividends plus changes in net asset value).
Increase in the Net Asset Value (NAV)
Portfolio
A collection of securities owned by a mutual fund. A fund's portfolio may include a combination of
stocks, bonds, and money market securities.
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Portfolio
Manager
The individual responsible for managing a mutual fund's portfolio.
Portfolio
Turnover
The rate of trading activity in a fund's portfolio of investments. In other words, how often
securities are bought and sold.
Preferred stock
A type of capital stock whose holders are paid dividends at a specified rate. It has preference over
common stock in the payment of dividends and the liquidation of assets, but does not ordinarily
carry voting rights. The benefits of owning preferred stock are realised if the company ever goes
bankrupt. If this occurs, preferred stock shareholders receive their money first. General (also
known as common) stockholders may not receive any money, if none is remaining after paying
preferred stock holders.
Price-earnings ratio (P/E)
One of the benchmarks used by portfolio managers to help them value companies. It is calculated
by dividing a companys share price by its earning per share.
Principal
The original amount initially invested, exclusive of earnings.
Promissory note
A document signed by the borrower in which he promises to repay a loan under agreed-upon
terms.
Public
Offer
Price
The price at which an investor can buy units of a mutual fund scheme. It includes the current net
asset value plus any sales load.
Rate of return
Rate of return is calculated by subtracting the purchase value by the present value and then
dividing it by the purchase value. For equities, we often include dividends with the present value.
Real
Return
The rate return earned on an investment after adjusting for the rate of inflation.
Record
Date
The date on which a unitholder must officially own a scheme's units in order to receive declared
dividend.
Redeem
To cash in units by selling them back to the mutual fund.
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Redemption
Price
The price at which a mutual funds units are redeemed, or bought back, by the fund. It is usually
the current net asset value per unit less exit load if any.
Reinstatement
Privilege
A facility which allows unit holders who have redeemed units, and then wish to reinvest, to
reinvest without paying the sales load. There is generally a 30-day time limit for this service.

Repatriable
The return from abroad of the financial assets of an organization or individual, and the conversion
of foreign currency to Rupees.
Risk
In general, risk is the possibility of suffering loss. There are many types of risk, such as credit risk ,
principal risk, inflation risk, interest rate risk and investment risk. If you are prepared to accept
greater risk, you have the chance of earning higher returns or profits on your money. Low-risk
investments, while generally safer, do not usually produce a high return, hence the loss of potential
gain.
Risk/ reward trade-off
The compromise made between high- and low-risk investments. High-risk investments generally
generate more earnings, while low-risk ones generate a lower rate of return.
Risk tolerance
The willingness of an investor to tolerate the risk of losing money for the potential to make money.
Rollover
A movement of funds from one investment to another, often similar, investment. Typically used
when securities are maturing.
Rupee
Cost
Averaging
An investment strategy that involves investing a fixed amount in a scheme at regular intervals say, monthly or quarterly. As a result, more fund units are bought when prices are low than at high
prices, usually bringing down an investor's average cost per share over time.
Sales charge
A charge added on to the price of a mutual fund when you buy it.

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Sector
Fund
A fund that invests primarily in securities of companies engaged in a specific industry. Sector
funds entail more risk, but may offer greater potential returns than funds that diversify their
portfolios.
Securities
The holdings of a mutual fund, such as stocks or bonds. Stocks are securities representing
ownership shares. Bonds are securities representing a contractual debt obligation of the issuer to
repay the holder, with interest.
Settlement
Date
The date by which a transaction must be settled, that is, to make the payment of funds and the
delivery of securities.
Standard
Deviation
A measure of the degree to which a fund's return varies from the average of the schemes own
return.
Stock
A fund that invests primarily in stocks.

Fund

Switching
The movement of investment from one scheme to another usually within the family of schemes.
An investor may switch schemes because of market conditions.
Systematic Investment Plan (SIP)
Allows an investor to periodically invest in units by issuing post-dated cheques. It allows the
investor to benefit from rupee cost averaging.
Systematic Withdrawal Plan (SWP)
Permits the investor to receive regular payments of a fixed amount or capital appreciation from his
investment in a mutual fund scheme on a periodic basis. Retirees in need of a regular income often
opt for this.
Top
Down
An investment method that first defines major economic and industry trends, and then identifies
specific companies that are likely to benefit from those trends.
Total
Return
A fund's performance that takes into account: income from dividends and unit price
appreciation/depreciation over a time period.
Treasury bills (T-bills)

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A short-term security with a maturity of one year or less.
Treasury bonds (T-bonds)
A long-term debt instruments with a maturity of 10 years or longer.
Treasury notes (T-notes)
A certificate representing an intermediate-term loan to the government with a maturity between
two to ten years.
Transaction costs
The costs incurred by the buying and selling of securities, including broker commissions and the
difference between dealer buying and selling price.
Transfer
The process of changing ownership of a unitholder account within the same scheme.
Transfer
Agent
A firm employed by a mutual fund to maintain unitholder records, including purchases, sales, and
account balances.
Treasury
Bill
(T-bill)
A debt security issued by the Indian government, having a maturity of less than a year.
Turnover
Rate
Based on the corpus, it is the number of times at which the fund buys and sells securities each year.
Unitholder
An investor, owning units of a mutual fund.
Unlisted
Securities which are not traded or listed in any of the approved Stock Exchanges of India will be
treated as unlisted security.
Unrealized
Gain
Or
Increase or decrease in the prices of securities held by the fund.

Loss

Value
Investing
The investment approach which favours buying under priced stocks that have the potential to
perform well and increase in price.
Volatility
The rate by which the price of a security fluctuates in changing market conditions.

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Year
To
Date
(YTD)
A period in a calendar year starting January 1 of that year and ending on that date.
Yield
The annual rate of return on an investment usually expressed as a percentage.
Yield
Curve
A graph depicting yield vis-a-vis maturity. If short-term rates are lower than long-term rates, it is a
positive yield curve, if short-term rates are higher, it is a negative or inverted yield curve. If there
is isnt much difference, it is a flat yield curve.
Yield
To
Maturity
The yield earned by a bond if held to maturity

(YTM)

Zero
Coupon
Bond
A bond issued at a discount, which accrues interest that is paid in full at maturity. The maturity
value an investor receives is equal to the principal invested plus interest earned compounded
semi-annually at the original rate to maturity. Interest income from zero-coupon bonds is
subject to taxes annually even though no payments will be made.

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Bibliography
Web sites:

www.Karvy.com

www .Karvy mutualfunds.com

www. AmfiIndia.com

www.sharekhan.com

www. Indiamart.com

www.Indiainfoline.com

www.Equity masters.com

Books:

Company Books

Company Brochures

AMFI (work book)

SEBI (A guide to mutual funds)

Financial Institutions and Markets ( L.M. Bhole)

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