India Infoline Awarness About The Mutual Fund

A
Summer Project Report

On
Awareness Regarding Mutual Fund

At
Submitted
In the partial fulfillment of the Degree of
Master of Business Administration
By
Chirag Naresh Patel
Enrollment No. EIILMU/09/F718
Under the Guidance of:
Prof. Nimesh Bhatt
International Business School
Under the Supervision:

Mr. Janardan Vayeda
Branch Manager,
India Infoline Ltd.
Submitted To:
International Business School
EIILM University
Ahmedabad
July, 2010
BATCH: 2009-2011
INDEX
Rank Particulars Page No.

1. Certificate by Guide 4
2. Certificate by Mentor 5
3. Candidates Statement 6
4. Preface 7
5. Acknowledgement 8
6. Executive Summery 9
7. Objective of Study 10
About Mutual Fund 11
8. Introduction 12
9. History of Mutual Fund 14
10. Organization Of Mutual Fund 17
11. The way and type to invest in Mutual Fund 19
12. Regulatory of mutual Fund Scheme 20
13. Types of Mutual Fund Scheme 21
14. SEBI Registered Mutual Fund 24
15. Points to measure M.F Performance 26
16. Procedure for registering M.F. with SEBI 27
17. How to reduce risk while investing 28
18. Growth in assets in Management 30
19. Advantages of Mutual Fund 31
20. Disadvantage of Mutual Fund 33
Company Details 34
21. Snapshot of India Infoline Ltd 35
22. History 36
23. Milestones 37
24. About India Infoline Ltd. 39
25. Vision statement 40
26. Management team 41
27. Contact details 44
28. Company s structure 45
29. Unique Approaches 48
30. Assets under Management 49
31. NFO Period from 1st June to 3rd July 2010 50
32. Invest online 51
33. Philosophy on Corporate Governance 53
34. Financial Statement of IIFL 55
Research Methodology 57
35. Research Methodology 58
36. Hypothesis 59
37. Data analysis 69
Summery and Conclusion 83
38. Findings 84
39. Suggestion 85
40. Limitations 86
41. Conclusion 87
42. Bibliography 88
Annexure 89
43. Questionnaire 89
44. Different Terminology 92
CERTIFICATE BY THE GUIDE
This is to certify that the contents of this report entitled Awareness Regarding
Mutual fund by
Chirag Naresh Patel (Enrollment No. EIILMU/09/F718) submitted to International B
usiness
School for the Award of Master of Business Administration (MBA Semester-II) is o
riginal
research work carried out by him/her/them under my supervision.
This report has not been submitted either partly or fully to any other Universit
y or Institute for
award of any degree or diploma.
(Prof. Nimesh Bhatt),
Professor & Head,
International Business School,
EIILM University,
Ahmedabad.
Date: 10 July 2010
Place: Ahmedabad
CERTIFICATE BY THE MENTOR
This is to certify that the contents of this report entitled Awareness Regarding
Mutual Fund by
Chirag Naresh Patel (Enrollment No. EIILMU/09/F718) submitted to International B
usiness
School, Ahmedabad for the Award of Master of Business Administration (MBA Semest
er-II) is
original research work carried out by him/her under my mentoring. I, hereby cert
ify the
authenticity of the data and facts mentioned in the report.
This report has not been submitted either partly or fully to any other Universit
y or Institute for
award of any degree or diploma.
(Prof. Nimesh Bhatt),

Professor & Head,
International Business School,
EIILM University,
Ahmedabad.
Date: 10 July 2010
Place: Ahmedabad
CANDIDATE S STATEMENT
I hereby declare that the work incorporated in this report entitled Awareness Reg
arding Mutual
Fund in partial fulfillment of the requirements for the award of Master of Busine
ss
Administration (Sem.-II) is the outcome of original study undertaken by me and i
t has not been
submitted earlier to any other University or Institution for the award of any De
gree or Diploma.
Date : 10 July 2010
Place : Ahmedabad
Chirag Naresh Patel
(Enrollment No. EIILMU/09/F718)
PREFACE
In today s trend of cut-throat competition, Masters of Business Administration (MB

A) is sure to
have an edge over their counterparts.
MBA education brings its students in direct contact with the real corporate worl
d through
industrial training. The MBA program provides its students with an in depth stud
y of various
managerial activities that are performed in any organization.
A detailed analysis of managerial activities conducted in various departments li
ke production,
marketing, finance, human resources, export-imports, credit dept, etc. gives the
student a
conceptual idea of what they are expected to manage , how to manage and how to o
btain the
maximum output through minimum inputs and how to minimize the wastage of resourc
es.
I have undergone my summer training at India Infoline Ltd. It is one of the lead
ing mutual fund
companies in the country. I feel great pleasure to present this report work afte
r my training at
India Infoline Ltd. that produced to be golden opportunity for me by enriching m
y knowledge
by comparing my theoretical knowledge with the managerial skill and application.
Simple language has been used throughout the report. Report is illustrated with
figure, charts and
diagrams as and when required.
ACKNOWLEDGEMENT
Expression of feelings by words makes them less significant when it comes to make
statement of gratitude
It is with a sense of gratitude that I acknowledge the effort of a whole host of
well-wishers who
have in some way or the other contributed in their own special ways to the succe
ss of this effort.
Individual effort alone can never contribute in totality, to the successful comp
letion of any
venture. At first, I wish to express my sincere gratitude to Mr. Janardan vayeda
sir who has
give me lots of support and encourage for this project, who has guide me through
out the project.
I would also like to thank other member of the company like Miss. Sweta Sorathiy
a and other
company members.
I would also like to thank Prof. Nimesh Bhatt has also help me as a project guid
e of the college
whenever I am in need.
How can I forget my Parents who rendered me not only financial support but also
a moral
support without which I could not have completed my project.
I am also thankful to all the persons who help us directly or indirectly.
EXECUTIVE SUMMARY
The India Info line group, comprising the holding company, India Info line Limit
ed and
its wholly-owned subsidiaries, straddle the entire financial services space with
offerings ranging
from Equity research, Equities and derivatives trading, Commodities trading, Por
tfolio
management Services, Mutual Funds, Life Insurance, Fixed deposits, Govt. bonds a
nd other
small savings instruments to loan products and Investment banking. India Info li
ne also owns and
manages the websites www.indiainfoline. Command www.5paisa.com The Company has a
network of 976 business locations (branches and sub-brokers) spread across 365 c
ities and towns.
It has more than 800,000 customers.
In today s competitive world there are many goods chasing few customers some are t
rying
it expands their size and share of existing market. As a result there are loser
and winners.
Winners are those who carefully analyze needs identify opportunities and create
aloe rich offers
for target customer.
The objective of the market research to determine the demand and supply and use
of the
product and competitors study so as to get the total market scenario of the prod
uct for analyzing
market problem research is needed. A firm can obtained market research in number
of ways. It
can hire market research firm or it can ask student to design and carry out mark
et research
project.
These marketing problems and opportunities if entrust to the student of marketin
g.
Especially when they seek the same during the project gives opportunities to app
ly their
theoretical knowledge and managerial knowledge.
India infoline.com/5paisa.com is related tosh remarket, it is equity to caused o
rganization
tracing its lineage to SSKL, a veteran solution company with over 8 decades of e
xperience in the
lead in stock market.
OBJECTIVES OF THE STUDY
1. The objective of the research is to study and analyze the awareness level of
investors of
mutual funds.
2. To measure the satisfaction level of investors regarding mutual funds.
3. An attempt has been made to measure various variable s playing in the minds of
investors in
terms of safety, liquidity, service, returns, and tax saving.
4. To get insight knowledge about mutual funds
5. To know the mutual funds performance levels in the present market
6. To analyze the comparative study between other leading mutual funds in the pr
esent market.
7. To know the awareness of mutual funds among different groups of investors.
8. Finding out ways and means to improve on the services by India Infoline Ltd.
ABOUT
MUTUAL
FUND
INTRODUCTION
What is a Mutual fund?
Mutual fund is an investment company that pools money from shareholders and inve
sts in a
variety of securities, such as stocks, bonds and money market instruments. Most
open-end
Mutual funds stand ready to buy back (redeem) its shares at their current net as
set value, which
depends on the total market value of the fund's investment portfolio at the time
of redemption.
Most open-end Mutual funds continuously offer new shares to investors. Also know
n as an open-
end investment company, to differentiate it from a closed-end investment company
. Mutual funds
invest pooled cash of many investors to meet the fund's stated investment object
ive. Mutual
funds stand ready to sell and redeem their shares at any time at the fund's curr
ent net
asset value: total fund assets divided by shares outstanding.
In Simple Words, Mutual fund is a mechanism for pooling the resources by issuing
units to the
investors and investing funds in securities in accordance with objectives as dis
closed in offer
document. Investments in securities are spread across a wide cross-section of in
dustries and
sectors and thus the risk is reduced. Diversification reduces the risk because a
ll stocks may not
move in the same direction in the same proportion at the same time. Mutual fund
issues units to
the investors in accordance with quantum of money invested by them. Investors of
Mutual funds
are known as unit holders. The profits or losses are shared by the investors in
proportion to their
investments. The Mutual funds normally come out with a number of schemes with di
fferent
investment objectives which are launched from time to time. In India, A Mutual f
und is required
to be registered with Securities and Exchange Board of India (SEBI) which regula
tes securities
markets before it can collect funds from the public. In Short, a Mutual fund is
a common pool of
money in to which investors with common investment objective place their contrib
utions that are
to be invested in accordance with the stated investment objective of the scheme.
The investment
manager would invest the money collected from the investor in to assets that are
defined/
permitted by the stated objective of the scheme. For example, an equity fund wou
ld invest equity
and equity related instruments and a debt fund would invest in bonds, debentures
, gilts etc.
Mutual fund is a suitable investment for the common man as it offers an opportun
ity to invest in
a diversified, professionally managed basket of securities at a relatively low c
ost
CONCEPT OF THE MUTUAL FUND
A Mutual Fund is a trust that pools the savings of a number of investors who sha
re a common
financial goal. The money thus collected is then invested in capital market inst
ruments such as
shares, debentures and other securities. The income earned through these investm
ents and the
capital appreciations realized are shared by its unit holders in proportion to t
he number of units
owned by them. Thus a Mutual Fund is the most suitable investment for the common
man as it
offers an opportunity to invest in a diversified, professionally managed basket
of securities at a
relatively low cost. The flow chart below describes broadly the working of a mut
ual fund:
HISTORY OF THE MUTUAL FUND INDUSTRY
The mutual fund industry in India started in 1963 with the formation of Unit Tru
st of India, at the
initiative of the Government of India and Reserve Bank. The history of mutual fu
nds in India can
be broadly divided into four distinct phases
Phase - 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It wa
s set up by the
Reserve Bank of India and functioned under the Regulatory and administrative con
trol 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 plac
e of RBI. The
first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs
.6,700
crores of assets under management.
Second Phase - 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up by public s
ector banks and
Life Insurance Corporation of India (LIC) and General Insurance Corporation of I
ndia (GIC).
SBI Mutual Fund was the first non-UTI Mutual Fund established in June 1987 follo
wed by Can
bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Ban
k 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 19
90.
At the end of 1993, the mutual fund industry had assets under management of Rs.4
7, 004 crores.
Third Phase - 1993-2003 (Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the Indian
mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 199
3 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 merge
d with
Franklin Templeton) was the first private sector mutual fund registered in July
1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and
revised Mutual Fund Regulations in 1996. The industry now functions under the SE
BI (Mutual
Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual fu
nds setting
up funds in India and also the industry has witnessed several mergers and acquis
itions. As at the
end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,80
5 crores. The
Unit Trust of India with Rs.44,541 crores of assets under management was way ahe
ad of other
mutual funds.
Fourth Phase - since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI w
as bifurcated
into two separate entities. One is the Specified Undertaking of the Unit Trust o
f 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 fram
ed by
Government of India and does not come under the purview of the Mutual Fund Regul
ations.
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 un
der 421
schemes.
The graph indicates the growth of assets over the years.
ORGANISATION OF MUTUAL FUND
THE STRUCTURE CONSISTS OF
SPONSOR
17
Sponsor is the person who acting alone or in combination with another body corpo
rate
establishes a mutual fund. Sponsor must contribute at least 40% of the net worth
of the
Investment managed and meet the eligibility criteria prescribed under the Securi
ties and
Exchange Board of India (Mutual Fund) Regulations, 1996. The sponsor is not resp
onsible or
liable for any loss or shortfall resulting from the operation of the Schemes bey
ond the initial
contribution made by it towards setting up of the Mutual Fund.
TRUST
The Mutual Fund is constituted as a trust in accordance with the provisions of t
he Indian Trusts
Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registra
tion Act, 1908.
TRUSTEE
Trustee is usually a company (corporate body) or a Board of Trustees (body of in
dividuals). The
main responsibility of the Trustee is to safeguard the interest of the unit hold
ers and ensure that
the AMC functions in the interest of investors and in accordance with the Securi
ties and
Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the
Trust Deed
and the Offer Documents of the respective Schemes. At least 2/3rd directors of t
he Trustee are
independent directors who are not associated with the Sponsor in any manner.
ASSET MANAGEMENT COMPANY (AMC)
The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund
. The AMC
is required to be approved by the Securities and Exchange Board of India (SEBI)
to act as an
asset management company of the Mutual Fund. At least 50% of the directors of th
e AMC are
independent directors who are not associated with the Sponsor in any manner. The
AMC must
have a net worth of at least 10 cores at all times.
REGISTRAR AND TRANSFER AGENT
The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer A
gent to the
Mutual Fund. The Registrar processes the application form, redemption requests a
nd dispatches
account statements to the unit holders. The Registrar and Transfer agent also ha
ndles
communications with investors and updates investor records.
THE WAY & TYPE TO INVEST IN MUTUAL FUND
Mutual funds normally come out with an advertisement in newspapers publishing th
e date of
launch of the new schemes. Investors can also contact the agents and distributor
s of mutual funds
who are spread all over the country for necessary information and application fo
rms. Forms can
be deposited with mutual funds through the agents and distributors who provide s
uch services.
Now days, the post offices and banks also distribute the units of mutual funds.
However, the
investors may please note that the mutual funds schemes being marketed by banks
and post
offices should not be taken as their own schemes and no assurance of returns is
given by them.
The only role of banks and post offices is to help in. distribution of mutual fu
nds schemes to the
investors. Investors should not be carried away by commission/gifts given by age
nts/distributors
for investing in a particular scheme. On the other hand they must consider the t
rack record of the
mutual fund and should take objective decision.
.
ONE TIME INVESTMENT
The amount that has to be invested in onetime is known as Onetime Investment. Th
e
investor has to pay the whole amount at once. The minimum amount is Rs. 5000 and
maximum is as per the investor s Choice. This investment is generally preferred fo
r the
business man who is able to pay at one time.
.
SYSTEMATIC INVESTMENT PLAN (SIP)
The amount that has to be invested through same monthly installment is known as
Systematic Investment Plan. The investor has to pay the minimum amount Rs.1000
monthly for all equity and balanced schemes like that for 6months. And Rs.500 mo
nthly
for Tax Saver scheme like that for 12 months. The minimum amount that the invest
or has
to invest is Rs6000 and maximum as per their choice. This type of investment is
generally
preferred for the salaried people.
REGULATORY OF MUTUAL FUND IN INDIA
.
SEBI
The capital market regulates the mutual funds in India. SEBI requires all mutual
funds to
be registered with them. SEBI issues guidelines for all mutual funds operations-
investment, accounts, expenses etc. Recently, it has been decided that Money Mar
ket
Mutual Funds of registered mutual funds will be regulated by SEBI through (Mutua
l
Fund) Regulations 1996.
.
RBI
RBI, a supervisor of the Banks owned Mutual Funds-As banks in India come under t
he
regulatory Jurisdiction of RBI, banks owned funds to be under supervision of RBI
and
SEBI. RBI has supervisory responsibility over all entities that operate in the m
oney
markets.
.
MINISTRY OF FINANCE (MOF)
Ministry of Finance ultimately supervises both the RBI and the SEBI and plays th
e role of
apex authority for any major disputes over SEBI guidelines.
.
COMPANY LOW BOARD
Registrar of companies is called Company Low Board. AMCs of Mutual Funds are
companies registered under the companies Act 1956 and therefore answerable to
regulatory authorities empowered by the Companies Act.
.
STOCK EXCHANGE
Stock Exchanges are Self-regulatory organizations supervised by SEBI. Many close
d
ended funds of AMCs are listed as stock exchanges and are traded like shares.
.
OFFICE OF THE PUBLIC TRUSTE
Mutual Fund being public trust is governed y the Indian Trust Act 1882. The Boar
d of
trustee or the Trustees Company is accountable to the office of public trustee,
which in
turn reports to the Charity commissioner.
TYPES OF MUTUAL FUND SCHEMES
1. BY STRUCTURE
1.1. Open Ended Schemes.
1.2. Close Ended Schemes.
1.3. Interval Schemes.
2. BY INVESTMENT OBJECTIVE
2.1. Growth Schemes.
2.2. Income Schemes.
2.3. Balanced Schemes.
3. OTHER SCHEMES
3.1. Tax Saving Schemes.
3.2. Special Schemes.
3.3. Index Schemes.
3.4. Sector Specific Schemes.
1.1 OPEN ENDED SCHEMES
The units offered by these schemes are available for sale and repurchase on any
business day at
NAV based prices. Hence, the unit capital of the schemes keeps changing each day
. Such
schemes thus offer very high liquidity to investors and are becoming increasingl
y popular in
India. Please note that an open-ended fund is NOT obliged to keep selling/issuin
g new units at all
times, and may stop issuing further subscription to new investors. On the other
hand, an open-
ended fund rarely denies to its investor the facility to redeem existing units.
1.2 CLOSED ENDED SCHEMES
The unit capital of a close-ended product is fixed as it makes a one-time sale o
f fixed number of
units. These schemes are launched with an initial public offer (IPO) with a stat
ed maturity period
after which the units are fully redeemed at NAV linked prices. In the interim, i
nvestors can buy
or sell units on the stock exchanges where they are listed. Unlike open-ended sc
hemes, the unit
capital in closed-ended schemes usually remains unchanged. After an initial clos
ed period, the
scheme may offer direct repurchase facility to the investors. Closed-ended schem
es are usually
more illiquid as compared to open-ended schemes and hence trade at a discount to
the NAV. This
discount tends towards the NAV closer to the maturity date of the scheme.
1.3 INTERVAL SCHEMES
21
These schemes combine the features of open-ended and closed-ended schemes. They
may be
traded on the stock exchange or may be open for sale or redemption during pre-de
termined
intervals at NAV based prices.
2.1 GROWTH SCHEMES
These schemes, also commonly called Equity Schemes, seek to invest a majority of
their funds in
equities and a small portion in money market instruments. Such schemes have the
potential to
deliver superior returns over the long term. However, because they invest in equ
ities, these
schemes are exposed to fluctuations in value especially in the short term.
2.2 INCOME SCHEMES
These schemes, also commonly called Debt Schemes, invest in debt securities such
as corporate
bonds, debentures and government securities. The prices of these schemes tend to
be more stable
compared with equity schemes and most of the returns to the investors are genera
ted through
dividends or steady capital appreciation. These schemes are ideal for conservati
ve investors or
those not in a position to take higher equity risks, such as retired individuals
. However, as
compared to the money market schemes they do have a higher price fluctuation ris
k and
compared to a Gilt fund they have a higher credit risk.
2.3 BALANCED SCHEMES
These schemes are commonly known as Hybrid schemes. These schemes invest in both
equities
as well as debt. By investing in a mix of this nature, balanced schemes seek to
attain the objective
of income and moderate capital appreciation and are ideal for investors with a c
onservative, long-
term orientation.
3.1 TAX SAVING SCHEMES
Investors are being encouraged to invest in equity markets through Equity Linked
Savings
Scheme ( ELSS ) by offering them a tax rebate. Units purchased cannot be assigned /
transferred/ pledged / redeemed / switched out until completion of 3 years from
the date of
allotment of the respective Units.
The Scheme is subject to Securities & Exchange Board of India (Mutual Funds) Reg
ulations,
1996 and the notifications issued by the Ministry of Finance (Department of Econ
omic Affairs),
Government of India regarding ELSS.
22
Subject to such conditions and limitations, as prescribed under Section 88 of th
e Income-tax Act,
1961.
3.2 INDEX SCHEMES
The primary purpose of an Index is to serve as a measure of the performance of t
he market as a
whole, or a specific sector of the market. An Index also serves as a relevant be
nchmark to
evaluate the performance of mutual funds. Some investors are interested in inves
ting in the
market in general rather than investing in any specific fund. Such investors are
happy to receive
the returns posted by the markets. As it is not practical to invest in each and
every stock in the
market in proportion to its size, these investors are comfortable investing in a
fund that they
believe is a good representative of the entire market. Index Funds are launched
and managed for
such investors.
3.3 SECTOR SPECIFIC SCHEMES.
Sector Specific Schemes generally invests money in some specified sectors for ex
ample: Real
Estate Specialized real estate funds would invest in real estates directly, or ma
y fund real estate
developers or lend to them directly or buy shares of housing finance companies o
r may even buy
their securitized assets.
SEBI REGISTERED MUTUAL FUND
1. FORTIS Mutual fund
2. Alliance Capital Mutual fund,
3. AIG Global Investment Group Mutual fund
4. Benchmark Mutual fund,
5. Baroda Pioneer Mutual fund
6. Birla Mutual fund
7. Bharti AXA Mutual fund
8. Canara Robeco Mutual fund
9. CRB Mutual fund (Suspended)
10. DBS Chola Mutual fund,
11. Deutsche Mutual fund
12. DSP Blackrock Mutual fund,
13. Edelweiss Mutual fund
14. Escorts Mutual fund,
15. Franklin Templeton Mutual fund
16. Fidelity Mutual fund
17. Goldman Sachs Mutual fund
18. HDFC Mutual fund,
19. HSBC Mutual fund,
20. ICICI Securities Fund,
21. IL & FS Mutual fund,
22. ING Mutual fund,
23. ICICI Prudential Mutual fund
24. IDFC Mutual fund,
25. JM Financial Mutual fund
26. JP Morgan Mutual fund
27. Kotak Mahindra Mutual fund,
29. LIC Mutual fund
31. Morgan Stanley Mutual fund
32. Mirae Asset Mutual fund
33. Principal Mutual fund
34. Quantum Mutual fund,
35. Reliance Mutual fund
36. Religare AEGON Mutual fund
37. Sahara Mutual fund,
38. SBI Mutual fund
39. Shriram Mutual fund
40. Sundaram BNP Paribas Mutual fund,
41. Taurus Mutual fund
42. Tata Mutual fund,
43. UTI Mutual fund
POINTERS TO MEASURE MUTUAL FUND
PERFORMANCE
MEASURES DESCRIPTION IDEAL RANGE

STANDARD Standard Deviation allows evaluating the volatility of Should be near t
o it s mean
DEVIATION the fund. The standard deviation of a fund measures
this risk by measuring the degree to which the fund
fluctuates in relation to its mean return.
return.
BETA Beta is a fairly commonly used measure of risk. It
basically indicates the level of volatility associated with
the fund as compared to the benchmark.
Beta > 1 = high risky
Beta = 1 = Average
Beta <1 = Low Risky
R-SQUARE R-square measures the correlation of a fund s
movement to that of an index. R-squared describes the
level of association between the fund's volatility and
market risk.
R-squared values range between
0 and 1, where 0 represents no
correlation and 1 represents full
correlation.
ALPHA Alpha is the difference between the returns one would
expect from a fund, given its beta, and the return it
actually produces. It also measures the unsystematic
risk.
Alpha is positive = returns of
stock are better then market
returns.
Alpha is negative = returns of
stock are worst then market.
Alpha is zero = returns are same
as market.
SHARPE
RATIO
Sharpe Ratio= Fund return in excess of risk free return/
Standard deviation of Fund. Sharpe ratios are ideal for
comparing funds that have a mixed asset classes.
The higher the Sharpe ratio, the
better a funds returns relative to
the amount of risk taken.
26
WHAT IS THE PROCEDURE FOR
REGISTERING A MUTUAL FUND WITH SEBI?
An applicant proposing to sponsor a Mutual fund in India must submit an applicat

ion in Form
A along with a fee of Rs.25, 000. The application is examined and once the spons
or satisfies
certain conditions such as being in the financial services business and possessi
ng positive net
worth for the last five years, having net profit in three out of the last five y
ears and possessing
the general reputation of fairness and integrity in all business transactions, i
t is required to
complete the remaining formalities for setting up a Mutual fund. These include i
nter alia,
executing the trust deed and investment management agreement, setting up a trust
ee
company/board of trustees comprising two-thirds independent trustees, incorporat
ing the
asset management company (AMC), contributing to at least 40% of the net worth of
the
AMC and appointing a custodian. Upon satisfying these conditions, the registrati
on
certificate is issued subject to the payment of registration fees of Rs.25.00 la
cs for details; see
the SEBI (Mutual funds) Regulations, 1996.
HOW TO REDUCE RISK WHILE INVESTING:
.
Any kind of investment we make is subject to risk. In fact we get return on our
investment purely and solely because at the very beginning we take the risk of p
arting
with our funds, for getting higher value back at a later date. Partition itself
is a risk.
.
Well known economist and Nobel Prize recipient William Sharpe tried to segregate
the total risk faced in any kind of investment into two parts -systematic (Syste
mic)
risk and unsystematic (Unsystemic) risk.
.
Systematic risk is that risk which exists in the system. Some of the biggest exa
mples
of systematic risk are inflation, recession, war, political situation etc.
.
Inflation erodes returns generated from all investments e.g. If return from fixe
d
deposit is 8 per cent and if inflation is 6 per cent then real rate of return fr
om fixed
deposit is reduced by 6 per cent.
.
Similarly if returns generated from equity market is 18 per cent and inflation i
s still 6
per cent then equity returns will be lesser by the rate of inflation. Since infl
ation exists
in the system there is no way one can stay away from the risk of inflation.
.
Economic cycles, war and political situations have effects on all forms of inves
tments.
Also these exist in the system and there is no way to stay away from them. It is
like
learning to walk.
.
Anyone who wants to learn to walk has to first fall; you cannot learn to walk wi
thout
falling. Similarly anyone who wants to invest has to first face systematic risk;
there
can never make any kind of investment without systematic risk.
.
Another form of risk is unsystematic risk. This risk does not exist in the syste
m and
hence is not applicable to all forms of investment. Unsystematic risk is associa
ted
with particular form of investment.
.
Suppose we invest in stock market and the market falls, then only our investment
in
equity gets affected OR if we have placed a fixed deposit in particular bank and
bank
goes bankrupt, than we only lose money placed in that bank.
.
While there is no way to keep away from risk, we can always reduce the impact of
risk. Diversification helps in reducing the impact of unsystematic risk. If our
investment is distributed across various asset classes the impact of unsystemati
c risk
is reduced.
.
If we have placed fixed deposit in several banks, then even if one of the banks
goes
bankrupt our entire fixed deposit investment is not lost.
.
Similarly if our equity investment is in Tata Motors, HLL, Infosys, adverse news
about Infosys will only impact investment in Infosys, all other stocks will not
have
any impact.
.
To reduce the impact of systematic risk, we should invest regularly. By investin
g
regularly we average out the impact of risk.
.
Mutual fund, as an investment vehicle gives us benefit of both diversification a
nd
averaging.
.
Portfolio of mutual funds consists of multiple securities and hence adverse news
about
single security will have nominal impact on overall portfolio.
.
By systematically investing in mutual fund we get benefit of rupee cost averagin
g.
.
Mutual fund as an investment vehicle helps reduce, both, systematic as well as
unsystematic risk.
ADVANTAGES OF MUTUAL FUNDS
.
Professional Management.
The major advantage of investing in a mutual fund is that you get a
professional money manager to manage your investments for a small fee. You
can leave the investment decisions to him and only have to monitor the
performance of the fund at regular intervals.
.
Diversification.
Considered the essential tool in risk management, mutual funds make it
possible for even small investors to diversify their portfolio. A mutual fund
can effectively diversify its portfolio because of the large corpus. However, a
small investor cannot have a well-diversified portfolio because it calls for
large investment. For example, a modest portfolio of 10 bluechip stocks calls
for a few a few thousands.
.
Convenient Administration.
Mutual funds offer tailor-made solutions like systematic investment plans and
systematic withdrawal plans to investors, which is very convenient to
investors. Investors also do not have to worry about investment decisions, they
do not have to deal with brokerage or depository, etc. for buying or selling of
securities. Mutual funds also offer specialized schemes like retirement plans,
children s plans, industry specific schemes, etc. to suit personal preference of
investors. These schemes also help small investors with asset allocation of
their corpus. It also saves a lot of paper work.
. Costs Effectiveness
A small investor will find that the mutual fund route is a cost-effective method
(the AMC fee is normally 2.5%) and it also saves a lot of transaction cost as
mutual funds get concession from brokerages. Also, the investor gets the
service of a financial professional for a very small fee. If he were to seek a
financial advisor's help directly, he will end up paying significantly more for
investment advice. Also, he will need to have a sizeable corpus to offer for
investment management to be eligible for an investment adviser s services.
.
Liquidity.
You can liquidate your investments within 3 to 5 working days (mutual funds
dispatch redemption cheques speedily and also offer direct credit facility into
your bank account i.e. Electronic Clearing Services).
.
Transparency.
Mutual funds offer daily NAVs of schemes, which help you to monitor your
investments on a regular basis. They also send quarterly newsletters, which
give details of the portfolio, performance of schemes against various
benchmarks, etc. They are also well regulated and Sebi monitors their actions
closely.
.
Tax benefits.
You do not have to pay any taxes on dividends issued by mutual funds. You
also have the advantage of capital gains taxation. Tax-saving schemes and
pension schemes give you the added advantage of benefits under section 88.
.
Affordability
Mutual funds allow you to invest small sums. For instance, if you want to buy
a portfolio of blue chips of modest size, you should at least have a few lakhs
of rupees. A mutual fund gives you the same portfolio for meager investment
of Rs.1,000-5,000. A mutual fund can do that because it collects money from
many people and it has a large corpus.
DISADVANTAGES OF MUTUAL FUNDS
.
Professional Management-
Did you notice how we qualified the advantage of professional management with th
e
word "theoretically"? Many investors debate over whether or not the so-called
professionals are any better than you or I at picking stocks. Management is by n
o
means infallible, and, even if the fund loses money, the manager still takes his
/her cut.
We'll talk about this in detail in a later section.
.
Costs
Mutual funds don't exist solely to make your life easier--all funds are in it fo
r a profit.
The Mutual fund industry is masterful at burying costs under layers of jargon. T
hese
costs are so complicated that in this tutorial we have devoted an entire section
to the
subject.
.
Dilution
It's possible to have too much diversification (this is explained in our article
entitled
"Are You Over-Diversified?"). Because funds have small holdings in so many
different companies, high returns from a few investments often don't make much
difference on the overall return. Dilution is also the result of a successful fu
nd getting
too big. When money pours into funds that have had strong success, the manager o
ften
has trouble finding a good investment for all the new money.
.
Taxes
When making decisions about your money, fund managers don't consider your
personal tax situation. For example, when a fund manager sells a security, a cap
ital-
gain tax is triggered, which affects how profitable the individual is from the s
ale. It
might have been more advantageous for the individual to defer the capital gains
liability.
.
Equity funds-
if selected in the right manner and in the right proportion, have the ability to
play an
important role in achieving most long-term objectives of investors in different
segments. While the selection process becomes much easier if you get advice from
professionals, it is equally important to know certain aspects of equity investi
ng
yourself to do justice to your hard earned money.
COMPANY
DETAILS
SNAPSHOT OF India Infoline Ltd.
Date of Establishment October 1995

Revenue Rs. 2654.1 million (2008-2009)
Market Cap Rs. 5110.71 (April 21 2009)
Corporate Address 84, Nariman Bhavan, Nariman Point, Mumbai -
400021, Maharashtra, India
Branches India
Management Team Nirmal Jain Founder
R Venkataraman-Co-
promoter and Executive
Director
Sat Pal Khattar- Non Executive Director
Nilesh Vikamsey- Independent Director
Kranti Sinha - Independent Director
Overview
India Infoline Limited provides the entire gamut of
financial services entailing equity research, equities and
derivatives trading, commodities trading, portfolio
management services, mutual funds, life insurance,
fixed deposits, GoI bonds and investment banking. It is
proficient in equities broking, wealth advisory services
and portfolio management services. The company is a
member of BSE and NSE. It is a depository member of
National Securities Depository Limited and Central
Depository Securities Ltd. The parent company India
Infoline Group also contains India Infoline Media and
Research Services Limited, India Infoline Commodities
Limited, India Infoline Marketing & Services, India
Infoline Investment Services Limited and IIFL (Asia)
Private Limited
HISTORY
We were founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director) as a
n
independent business research and information provider. We gradually evolved int
o a one-
stop financial services solutions provider. Our strong management team comprises
competent
and dedicated professionals
We are a pan-India financial services organization across 1,361 business locatio
ns and a
presence in 428 cities. Our global footprint extends across geographies with off
ices in New
York, Singapore and Dubai. We are listed on the Bombay Stock Exchange (BSE) and
the
National Stock Exchange (NSE).
We offser a wide range of services and products comprising broking (retail and i
nstitutional
equities and commodities), wealth management, credit and finance, insurance, ass
et
management and investment banking.
We are registered with the BSE and the NSE for securities trading, MCX, NCDEX an
d
DGCX for commodities trading, CDSL and NSDL as depository participants. We are
registered as a Category I merchant banker and are a SEBI registered portfolio m
anager. We
also received the FII license in IIFL Inc. IIFL Securities Pte Ltd received appr
oval from the
Monetary Authority of Singapore to carry out corporate advisory and dealing in s
ecurities
operations. Two subsidiaries India Infoline Investment Services and Moneyline Cr
edit
Limited are registered with RBI as non-deposit taking non-banking financial serv
ices
companies. India infoline Housing Finance Ltd, the housing finance arm, is regis
tered with
the National Housing Bank.
MILESTONES
1995
Incorporated as an equity research and consulting firm with a client base that i
ncluded
leading FIIs, banks, consulting firms and corporates.
1999
Restructured the business model to embrace the internet; launched
archives.indiainfoline.com mobilised capital from reputed private equity investo
rs.
2000
Commenced the distribution of personal financial products; launched online equit
y
trading; entered life insurance distribution as a corporate agent. Acknowledged
by
Forbes as Best of the Web and ...must read for investors .
2004
Acquired commodities broking license; launched Portfolio Management Service.
2005
Listed on the Indian stock markets.
2006
Acquired membership of DGCX; launched investment banking services.
2007
Launched a proprietary trading platform; inducted an institutional equities team
; formed
a Singapore subsidiary; raised over USD 300 mn in the group; launched consumer
finance business under the Moneyline brand.
2008
Launched wealth management services under the IIFL Wealth brand; set up India
37
Infoline Private Equity fund; received the Insurance broking license from IRDA;
received the venture capital license; received in principle approval to sponsor
a mutual
fund; received Best broker-India award from Financeasia; Most Improved Brokerage-
India award from Asiamoney.
Received registration for a housing finance company from the National Housing Ba
nk;
received Fastest growing Equity Broking House -Large firms in India by Dun &
Bradstreet.
India Infoline Ltd.
India Info Line is a one-stop financial services shop, most respected for qualit
y of its
advice, personalized service and cutting-edge technology.
.
Vision Statement :
Our vision is to be the most respected company in the financial service space.
. India Info line Group :
The India Info line group, comprising the holding company, india info line limit
ed
and its wholly-owned subsidiaries, straddle the entire financial services space
with
offerings ranging from equity research, equities and derivatives trading, commod
ities
trading, portfolio management services, mutual funds, life insurance, fixed depo
sits,
goi bonds and other small savings instruments to loan products and investment
banking.
India Info line also owns and manages the websites www.indiainfoline.com and
www.5paisa.com the company has a network of over 2100 business locations
(branches and sub-brokers) spread across more than 450 cities and towns. the gro
up
caters to approximately a million customers.
.
India Infoline Group subsidiaries:
India Infoline Media and Research Services Limited

India Infoline Commodities Limited
India Infoline Marketing & Services
India Infoline Investment Services Limited
IIFL (Asia) Pte Limited
.
Our Global Presence:
USA, Dubai, Singapore
VISION
To become the most respected
Company in the financial
Service space
Diversified,
Addressing all customer segments
MANAGEMENT TEAM
Mr. Nirmal Jain

Chairman & Managing Director
India Infoline Ltd.
Nirmal Jain, MBA (IIM, Ahmedabad) and a Chartered and Cost Accountant, founded
India s leading financial services company India Infoline Ltd. in 1995, providing
globally
acclaimed financial services in equities and commodities broking, life insurance
and
mutual funds distribution, among others. Mr. Jain began his career in 1989 with
Hindustan Lever s commodity export business, contributing tremendously to its grow
th.
He was also associated with Inquire-Indian Equity Research, which he co-founded
in
1994 to set new standards in equity research in India.
Mr. R Venkataraman
Executive Director
India Infoline Ltd.
R Venkataraman, co-promoter and Executive Director of India Infoline Ltd., is a

B. Tech
(Electronics and Electrical Communications Engineering, IIT Kharagpur) and an MB
A
(IIM Bangalore). He joined the India Infoline board in July 1999. He previously
held
senior managerial positions in ICICI Limited, including ICICI Securities Limited
, their
investment banking joint venture with J P Morgan of USA and with BZW and Taib
Capital Corporation Limited. He was also Assistant Vice President with G E Capit
al
Services India Limited in their private equity division, possessing a varied exp
erience of
more than 16 years in the financial services sector.
The Board of Directors
Apart from Nirmal Jain and R Venkataraman, the Board of Directors of India Infol
ine
Ltd. comprises:
Mr Nilesh Vikamsey
Independent Director
India Infoline Ltd.
Mr. Vikamsey, Board member since February 2005 -a practising Chartered Accountan
t
and partner (Khimji Kunverji & Co., Chartered Accountants), a member firm of HLB
International, headed the audit department till 1990 and thereafter also handles
financial
services, consultancy, investigations, mergers and acquisitions, valuations etc;
an ICAI
study group member for Proposed Accounting Standard 30 on Financial Instruments
Recognition and Management, Finance Committee of The Chamber of Tax
Consultants (CTC), Law Review, Reforms and Rationalization Committee and
Infotainment and Media Committee of Indian Merchants Chamber (IMC) and Insurance
Committee and Legal Affairs Committee of Bombay Chamber of Commerce and Industry
(BCCI).
Mr. Vikamsey is a director of Miloni Consultants Private Limited, HLB Technologi
es
(Mumbai) Private Limited and Chairman of HLB India.
Mr Sat Pal Khattar
Non Executive Director
India Infoline Ltd.
Mr Sat Pal Khattar, -Board member since April 2001 -Presidential Council of Mino
rity
Rights member, Chairman of the Board of Trustee of Singapore Business Federation
, is
also a life trustee of SINDA, a non profit body, helping the under-privileged In
dians in
Singapore. He joined the India Infoline board in April 2001. Mr Khattar is a Dir
ector of
public and private companies in Singapore, India and Hong Kong; Chairman of
Guocoland Limited listed in Singapore and its parent Guoco Group Ltd listed in H
ong
Kong, a leading property company of Singapore, China and Malaysia.
Mr Kranti Sinha
India Infoline Ltd.
Mr. Kranti Sinha Board member since January 2005 completed his masters from
the Agra University and started his career as a Class I officer with Life Insura
nce
Corporation of India. He served as the Director and Chief Executive of LIC Housi
ng
Finance Limited from August 1998 to December 2002 and concurrently as the Managi
ng
Director of LICHFL Care Homes (a wholly owned subsidiary of LIC Housing Finance
Limited). He retired from the permanent cadre of the Executive Director of LIC;
served as
the Deputy President of the Governing Council of Insurance Institute of India an
d as a
member of the Governing Council of National Insurance Academy, Pune apart from
various other such bodies. Mr. Sinha is also on the Board of Directors of Hindus
tan
Motors Limited, Larsen & Toubro Limited, LICHFL Care Homes Limited, Gremach
Infrastructure Equipments and Projects Limited and Cinemax (India) Limited.
Mr Arun K. Purvar
India Infoline Ltd.
Mr. A.K. Purvar Board member since March 2008 completed his Masters degree in
commerce from Allahabad University in 1966 and a diploma in Business Administrat
ion
in 1967. Mr. Purwar joined the State Bank of India as a probationary officer in
1968,
where he held several important and critical positions in retail, corporate and
international
banking, covering almost the entire range of commercial banking operations in hi
s
illustrious career. He also played a key role in co-coordinating the work for th
e Bank's
entry into the field of insurance. After retiring from the Bank at end May 2006,
Mr.
Purwar is now working as Member of Board of Governors of IIM-Lucknow, joined IIM
Indore as a visiting professor, joined as a Hon.-Professor in NMIMS and he is al
so a
member of Advisory Board for Institute of Indian Economic Studies (IIES), Waseda
University, Tokyo, Japan. He has now taken over as Chairman of IndiaVenture Advi
sors
Pvt. Ltd., as well as IL & FS Renewable Energy Limited. He is also working as
Independent Director in leading companies in Autoparts, Engineering and Consulta
ncy.
CONTECT DETAILS
Registrar & Transfer Agent Shareholder Enquiries

Intime Spectrum Registry Ltd, The Company Secretary,
C13 Pannalal Silk Mills compound, Bldg. No. 75, Nirlon Complex,
LBS Marg,Bhandup West, Off W E Highway, Goregaon(E),
Mumbai 400078 Mumbai-400 063
Tel : 91-22-5555 5454 Tel : +(91 22) 6669 3200
Fax : 91-22-5555 5353 Fax: +(91 22) 2272 2419
Email : vishwasa@intimespectrum.com Email : Investor@indiainfoline.com
Shareholder Enquiries Email Details
India Infoline Ltd Investor Relations
75, Nirlon Complex, ir@indiainfoline.comOff W.E.Highway,
Goregaon (E), Investor Grievances
Mumbai, customergrievances@indiainfoline.comIndia - 400 063,
Boardline No : (91-22) 4007 7000 Shareholder Grievances
Tel: (91-22) 4249 9000 shareholders@indiainfoline.com
Fax: (91-22) 2685 0451
Website : http://www.indiainfoline.com
Email : mail@indiainfoline.com
COMPANY STRUCTURE
India Infoline Limited is listed on both the leading stock exchanges in India, v
iz. the Stock
Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a membe
r of
both the exchanges. It is engaged in the businesses of Equities broking, Wealth
Advisory
Services and Portfolio Management Services. It offers broking services in the Ca
sh and
Derivatives segments of the NSE as well as the Cash segment of the BSE. It is re
gistered with
NSDL as well as CDSL as a depository participant, providing a one-stop solution
for clients
trading in the equities market. It has recently launched its Investment banking
and
Institutional Broking business.
A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to

clients.
These services are offered to clients as different schemes, which are based on d
iffering
investment strategies made to reflect the varied risk-return preferences of clie
nts.
India Infoline Media and Research Services Limited.
The content services represent a strong support that drives the broking, commodi
ties, mutual
fund and portfolio management services businesses. Revenue generation is through
the sale
of content to financial and media houses, Indian as well as global.
It undertakes equities research which is acknowledged by none other than Forbes
as 'Best of
the Web' and ' a must read for investors in Asia'. India Infoline's research is av
ailable not
just over the internet but also on international wire services like Bloomberg (C
ode: IILL),
Thomson First Call and Internet Securities where India Infoline is amongst the m
ost read
Indian brokers.
India Infoline Commodities Limited.
India Infoline Commodities Pvt Limited is engaged in the business of commodities
broking.
Our experience in securities broking empowered us with the requisite skills and
technologies
to allow us offer commodities broking as a contra-cyclical alternative to equiti
es broking. We
enjoy memberships with the MCX and NCDEX, two leading Indian commodities exchang
es,
and recently acquired membership of DGCX. We have a multi-channel delivery model
,
making it among the select few to offer online as well as offline trading facili
ties.
India Infoline Marketing & Services
India Infoline Marketing and Services Limited is the holding company of India In
foline
Insurance Services Limited and India Infoline Insurance Brokers Limited.
(a) India Infoline Insurance Services Limited is a registered Corporate Agent wi
th the
Insurance Regulatory and Development Authority (IRDA). It is the largest Corpora
te Agent
for ICICI Prudential Life Insurance Co Limited, which is India's largest private
Life
Insurance Company. India Infoline was the first corporate agent to get licensed
by IRDA in
early 2001.
(b) India Infoline Insurance Brokers Limited is a newly formed subsidiary which
will carry
out the business of Insurance broking. We have applied to IRDA for the insurance
broking
licence and the clearance for the same is awaited. Post the grant of license, we
propose to also
commence the general insurance distribution business.
India Infoline Investment Services Limited
Consolidated shareholdings of all the subsidiary companies engaged in loans and
financing
activities under one subsidiary. Recently, Orient Global, a Singapore-based inve
stment
institution invested USD 76.7 million for a 22.5% stake in India Infoline Invest
ment Services.
This will help focused expansion and capital raising in the said subsidiaries fo
r various
lending businesses like loans against securities, SME financing, distribution of
retail loan
products, consumer finance business and housing finance business. India Infoline
Investment
Services Private Limited consists of the following step-down subsidiaries.
(a) India Infoline Distribution Company Limited (distribution of retail loan pro
ducts)
(b) Moneyline Credit Limited (consumer finance)
(c) India Infoline Housing Finance Limited (housing finance)
IIFL (Asia) Private Limited
IIFL (Asia) Private Limited is wholly owned subsidiary which has been incorporat
ed in
Singapore to pursue financial sector activities in other Asian markets. Further
to obtaining the
necessary regulatory approvals, the company has been initially capitalized at 1
million
Singapore dollars.
COMPANY S UNIQUE APPROACHES
ASSET UNDER MANAGEMENT
Mutual Fund Name

No. of Schemes(Incl
Options)
Corpus(Rs.Cr)
30-Apr-10
Corpus(Rs.Cr)
31-Mar-10
Net Inc/Dec in
Corpus
Reliance Mutual Fund 491 111,819 110,413 1,407
HDFC Mutual Fund 437 94,703 88,780 5,923
ICICI Prudential
Mutual Fund
594 83,064 81,018 2,046
UTI Mutual Fund 378 79,457 80,218 [761]
Birla Sun Life Mutual
Fund
496 69,532 62,367 7,165
LIC Mutual Fund 100 40,507 42,304 [1,797]
SBI Mutual Fund 178 39,826 37,417 2,409
Franklin Templeton
Mutual Fund
276 34,912 34,034 878
Kotak Mahindra
Mutual Fund
222 33,845 34,787 [942]
IDFC Mutual Fund 271 25,623 25,775 [151]
Tata Mutual Fund 409 22,051 21,935 116
DSP Blackrock
Mutual Fund
229 21,949 21,491 458
Sundaram BNP
Paribas Mutual Fund
314 14,361 13,878 483
Religare Mutual Fund 288 13,829 12,945 885
Deutsche Mutual Fund 245 10,112 10,477 [365]
NFO PERIOD FROM 1ST JUNE TO 30TH JUNE 2010.
IDFC Mutual Fund has launched a new fund named as IDFC Capital Protection Orient
ed Fund -Series
II, a three year close ended income scheme. The scheme shall mature on 30 June 2
013. The New Fund
Offer (NFO) price for the scheme is Rs 10 per unit. The new issue is open for su
bscription from 1 June
and closes on 30 June 2010.
The investment objective of the scheme is to protect the capital by investing in
high quality fixed
income securities as the primary objective and generate capital appreciation by
investing in equity and
equity related instruments as a secondary objective.
The scheme offers dividend and growth option.
The scheme would allocate up to 16% of assets in equities & equity related secur
ities with high risk
profile. It would further allocate 84% to 100% of assets in debt securities & mo
ney market instruments
(of which up to 30% would be in securitized instruments) with low to medium risk
profile. Equity
Derivatives (futures and options) may be used in place of cash equities with the
condition that the total
notional exposure together with the investments in equities will not exceed the
allocation of the corpus
towards equity investments at any point of time.
The minimum investment amount is Rs 5,000 and in multiples of Rs 10 thereafter.
The fund seeks to collect a minimum subscription (minimum target) amount of Rs 1
crore under the
scheme during the NFO period.
Entry and entry load charge shall be nil for the scheme.
The Scheme's performance will be benchmarked against CRISIL MIP Blended Index.
Ashwin Patni will be the fund manager for the scheme.
INVEST ONLINE
India Infoline has made investing in Mutual funds and primary market so effortle
ss.
All you have to do is register with us and thats all. No paperwork no queues and
No
registration charges.
If you are 5p customer use your existing login ID and Ledger (fund transfer) pas
sword.
Indiainfoline offers you a host of mutual fund and IPO choices under one roof; b
acked by
in-depth information and research to help you invest effortlessly.
INVEST IN MF
Indiainfoline offers you a host of mutual fund choices under one roof, backed by
in-depth
research and advice from research house and tools configured as investor friendl
y.Investing
in Mutual Funds has never been easier
Know more about MF
Buying a mutual fund may be the smartest financial decision of your life. But wi
th
over 2500 mutual funds to choose from, you can be sure that there are a decent
number of sour apples out there. To be safe, take a look at the items mentioned
on
this list before you invest in any mutual fund.
Evaluate MF
Invest Wisely! Don't get caught in the trap of chasing performance. Buy a fund
because it meets an objective in your portfolio. Let us provide you platform whe
re
you can search, research and compare funds across all fund families, asset class
es
and objectives using this section.
Buy & Sell MF
Now you are one click away from building your portfolio. This section brings you
mutual fund schemes, which you desire to buy.
APPLY IN IPOs
You could also invest in Initial Public Offers (IPOs) online without going throu
gh the
hassles of filling ANY application form/ paperwork.
Know more about IPO
Get in-depth analyses of new IPOs issues (Initial Public Offerings) which are
Apply for IPOs
Easiest way to bid for IPO. This section brings you IPOs, which you wants in
your portfolio.
Register Now!
COMPANY S PHYLOSOPHY ON CORPORATE
GOVERNANCE
The India Infoline Group is committed to placing the Investor First, by continuo
usly striving to
increase the efficiency of the operations as well as the systems and processes f
or use of corporate
resources in such a way so as to maximize the value to the stakeholders. The Gro
up aims at achieving
not only the highest possible standards of legal and regulatory compliances, but
also of effective
management.
Committee
Audit Committee
Terms of reference & Composition, Name of members and Chairman: The Audit commit
tee
comprises Mr Nilesh Vikamsey, Chairman of the Committee, Mr Sat Pal Khattar, Mr
Sanjiv Ahuja
and Mr Kranti Sinha, three of whom are independent Directors. The Managing Direc
tor, the
Executive Director along with the Statutory and Internal Auditors are invitees t
o the Meeting. The
Terms of reference of this committee are as under: -To investigate into any matt
er that may be
prescribed under the provisions of Section 292A of The Companies Act, 1956 -Reco
mmendation and
removal of External Auditor and fixation of the Audit Fees. -Reviewing with the
management the
financial statements before submission of the same to the Board. -Overseeing of
Company s financial
reporting process and disclosure of its financial information. -Reviewing the Ad
equacy of the Internal
Audit Function.
Compensation/ Remuneration Committee
Terms of reference & Composition, Name of members and Chairman: The Compensation
/
Remuneration Committee comprises Mr Sanjiv Ahuja, Chairman of the Committee, Mr
Nilesh
Vikamsey and Mr Kranti Sinha, all of whom are independent Directors. The Terms o
f reference of
this committee are as under: -To fix suitable remuneration package of all the Ex
ecutive Directors and
Non Executive Directors, Senior Employees and officers i.e. Salary, perquisites,
bonuses, stock
options, pensions etc. -Determination of the fixed component and performance lin
ked incentives
alongwith the performance criteria to all employees of the company -Service Cont
racts, Notice
Period, Severance Fees of Directors and employees. -Stock Option details: whethe
r to be issued at
discount as well as the period over which to be accrued and over which exercisab
le. -To conduct
discussions with the HR department and form suitable remuneration policies.
Share Transfer and Investor Grievance Committee
Details of the Members, Compliance Officer, No of Complaints received and pendin
g and pending
transfers as on close of the financial year. The committee functions under the C
hairmanship of Mr
Kranti Sinha, a Non-executive independent Director. The other Members of the com
mittee are Mr
Sanjiv Ahuja, Independent Director and Mr R Venkataraman, Executive Director. Ms
Komal Parikh,
Company Secretary is the Compliance Officer of the Company.
FINANCIAL STATEMENT OF INDIA INFOLINE LTD.
Balance sheet
(Rs.in Millions)
Particulars Mar 2009 Mar 2008 Mar 2007 Mar 2006 Mar 2005
SOURCES OF FUNDS
+ Share Capital 566.80 571.03 501.67 451.01 316.22
Share Warrants & Outstandings 136.17 668.64 55.17 44.20 0.00
+ Reserves & Surplus 9778.84 9256.60 2340.81 1238.34 207.05
Shareholder's Funds 10481.81 10496.28 2897.65 1733.55 523.27
+ Secured Loans 17.04 0 446.82 15.01 13.69
+ Unsecured Loans 1.03 1305.68 362.70 808.85 2.00
Total Debts 18.08 1305.68 809.52 823.87 15.68
Total Liabilities 10499.89 11801.95 3707.17 2557.42 538.95
APPLICATION OF FUNDS :
+ Loans (Non Current Assets) 0 0 0 0 0
Gross Block 1436.77 983.18 730.99 87.48 44.74
Less: Accumulated Depreciation 449.45 350.77 243.85 52.31 37.61
Less: Impairment of Assets 0 0 0.00 0 0
Net Block 987.32 632.41 487.14 35.17 7.13
Lease Adjustment A/c 0 0 0.00 0 0
Capital Work in Progress 45.13 4.91 0.00 0 0
Pre-operative Expenses pending 0 0 0.00 0 0
Assets in transit 0 0 0 0 0
+ Investments 8693.12 9156.80 1714.50 1002.49 403.09
Market Value of Quoted Investements 0 0.00 0 0.00 1.56
Current Assets, Loans & Advances
+ Inventories 5.61 13.09 0.00 0 0
+ Sundry Debtors 1035.29 3428.13 1307.23 54.88 14.90
+ Cash and Bank 4302.49 2143.71 950.79 20.91 20.33
+ Other Current Assets 0 0.00 0.00 0.00 0.00
+ Loans and Advances 2405.91 3112.99 2197.40 1721.63 133.85
Total Current Assets 7749.30 8697.92 4455.42 1797.42 169.08
Less : Current Liabilities and Provisions
+ Current Liabilities 5526.75 5148.54 2445.20 76.69 23.88
+ Provisions 1486.39 1567.44 510.26 202.99 16.47
Total Current Liabilities 7013.15 6715.98 2955.45 279.68 40.35
Net Current Assets 736.16 1981.94 1499.97 1517.74 128.73
Miscellaneous Expenses not written off 0 0 0 0 0
Deferred Tax Assets 38.15 25.89 5.80 2.01 0.00
Deferred Tax Liability 0.00 0.00 0.25 0.00 0.00
Deferred Tax Assets / Liabilities 38.15 25.89 5.56 2.01 0
Total Assets 10499.89 11801.95 3707.17 2557.42 538.95
Contingent Liabilities 3.41 0 0 0 0
+ Unsecured Loans 1.03 1305.68 362.70 808.85 2.00
Total Debts 18.08 1305.68 809.52 823.87 15.68
Total Liabilities 10499.89 11801.95 3707.17 2557.42 538.95
APPLICATION OF FUNDS :
+ Loans (Non Current Assets) 0 0 0 0 0
Gross Block 1436.77 983.18 730.99 87.48 44.74
Less: Accumulated Depreciation 449.45 350.77 243.85 52.31 37.61
Less: Impairment of Assets 0 0 0.00 0 0
Net Block 987.32 632.41 487.14 35.17 7.13
Lease Adjustment A/c 0 0 0.00 0 0
Capital Work in Progress 45.13 4.91 0.00 0 0
Pre-operative Expenses pending 0 0 0.00 0 0
Assets in transit 0 0 0 0 0
+ Investments 8693.12 9156.80 1714.50 1002.49 403.09
Market Value of Quoted Investements 0 0.00 0 0.00 1.56
Current Assets, Loans & Advances
+ Inventories 5.61 13.09 0.00 0 0
+ Sundry Debtors 1035.29 3428.13 1307.23 54.88 14.90
+ Cash and Bank 4302.49 2143.71 950.79 20.91 20.33
+ Other Current Assets 0 0.00 0.00 0.00 0.00
+ Loans and Advances 2405.91 3112.99 2197.40 1721.63 133.85
Total Current Assets 7749.30 8697.92 4455.42 1797.42 169.08
Less : Current Liabilities and Provisions
+ Current Liabilities 5526.75 5148.54 2445.20 76.69 23.88
+ Provisions 1486.39 1567.44 510.26 202.99 16.47
Total Current Liabilities 7013.15 6715.98 2955.45 279.68 40.35
Net Current Assets 736.16 1981.94 1499.97 1517.74 128.73
Miscellaneous Expenses not written off 0 0 0 0 0
Deferred Tax Assets 38.15 25.89 5.80 2.01 0.00
Deferred Tax Liability 0.00 0.00 0.25 0.00 0.00
Deferred Tax Assets / Liabilities 38.15 25.89 5.56 2.01 0
Total Assets 10499.89 11801.95 3707.17 2557.42 538.95
Contingent Liabilities 3.41 0 0 0 0
Profit and loss account
(Rs.in Millions)
Particulars Mar 2009 Mar 2008 Mar 2007 Mar 2006 Mar 2005
No of Months 12 12 12 12 12
+ Operating Income 5715.35 6575.36 2828.46 449.12 213.17
Interest income 0 0.00 0.00 0.00 0.00
Net Sales 5715.35 6575.36 2828.46 449.12 213.17
EXPENDITURE :
Increase/Decrease in Stock 0 0 0.00 0 0
Purchase of Shares / Units 0 0 0.00 0 0
Employee Cost 1409.37 1325.42 539.96 0.38 0.66
+ Operating & Establishment Expenses 1824.72 1990.92 963.39 7.91 6.75
+ Administrations & Other Expenses 590.54 597.61 340.14 41.68 17.83
Provisions and Contigencies 9.90 21.31 20.69 0.53 1.31
Less: Pre-operative Expenses Capitalised 0 0 0 0 0
Total Expenditure 3834.52 3935.27 1864.18 50.49 26.55
Operating Profit (Excl OI) 1880.82 2640.09 964.28 398.63 186.62
+ Other Income 1.01 149.04 38.71 35.55 9.19
Operating Profit 1881.84 2789.14 1002.99 434.18 195.81
+ Interest 111.47 228.22 83.53 21.97 0.43
Depreciation 255.61 194.40 123.27 14.70 5.24
Profit Before Taxation & Exceptional Items 1514.76 2366.52 796.19 397.51 190.14
Exceptional Income / Expenses 0 -290.44 0.00 0 0
Profit Before Tax 1514.76 2076.07 796.19 397.51 190.14
+ Provision for Tax 456.50 789.20 274.97 132.81 15.40
Profits After Tax 1058.25 1286.87 521.22 264.69 174.74
+ Appropriations 2287.40 1760.99 604.69 265.49 0.79
Equity Dividend % 140.00 60.00 30.00 30.00 0
Earnings Per Share 3.71 22.54 10.39 5.87 5.53
Book Value 36.51 172.10 56.66 37.46 16.55
Less: Pre-operative Expenses Capitalised 0 0 0 0 0
Total Expenditure 3834.52 3935.27 1864.18 50.49 26.55
Operating Profit (Excl OI) 1880.82 2640.09 964.28 398.63 186.62
+ Other Income 1.01 149.04 38.71 35.55 9.19
Operating Profit 1881.84 2789.14 1002.99 434.18 195.81
+ Interest 111.47 228.22 83.53 21.97 0.43
Depreciation 255.61 194.40 123.27 14.70 5.24
Profit Before Taxation & Exceptional Items 1514.76 2366.52 796.19 397.51 190.14
Exceptional Income / Expenses 0 -290.44 0.00 0 0
Profit Before Tax 1514.76 2076.07 796.19 397.51 190.14
+ Provision for Tax 456.50 789.20 274.97 132.81 15.40
Profits After Tax 1058.25 1286.87 521.22 264.69 174.74
+ Appropriations 2287.40 1760.99 604.69 265.49 0.79
Equity Dividend % 140.00 60.00 30.00 30.00 0
Earnings Per Share 3.71 22.54 10.39 5.87 5.53
Book Value 36.51 172.10 56.66 37.46 16.55
RESEARCH
METHODOLOGY
Research Methodology
Type of Research Design : Conclusive Research Design
Source of Data : a. Primary Data: Survey Method
b. Secondary Data: Internet,
Magazines, Reference Books,
Newspapers.
Research Equipment : Questionnaire
57
Sampling Technique : Non-Probability TechniqueConvenience
Sampling Method.
Sample Size : 100 Samples
Area of Research : Ahmadabad, Jamnagar, Bhavnagar
Hypotheses-1 Age and awareness regarding Mutual Fund
Ho=Age of the people have impact on awareness of Mutual Fund
H1=Age of the people have not impact on awareness of Mutual Fund
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
age * awareness 100 100.0% 0 .0% 100 100.0%
Objectives : The main objective of research is to find awareness
regarding Mutual fund among earning people
Sub-objectives
: To find how much people investing in Mutual Fund
To find in which Mutual Fund they are investing
To find which way or which option people like while
Investing in Mutual Fund
age * awareness Cross tabulation
Awareness
yes No Total
age 20-30 Count 7 6 13
% of Total 7.0% 6.0% 13.0%
Std. Residual -.4 .5
30-40 Count 29 17 46
% of Total 29.0% 17.0% 46.0%
Std. Residual .0 .0
40-50 Count 25 10 35
% of Total 25.0% 10.0% 35.0%
Std. Residual .6 -.8
50-above Count 2 4 6
% of Total 2.0% 4.0% 6.0%
Std. Residual -.9 1.2
Total Count 63 37 100
% of Total 63.0% 37.0% 100.0%
Chi-Square Tests
Value Df
Asymp. Sig. (2sided)
Exact Sig.
(2-sided)
Exact
Sig.
(1sided)
Point Probability
Pearson Chi-Square
Likelihood Ratio
Fisher's Exact Test
Linear-by-Linear
Association
N of Valid Cases
3.799a
3.727
3.770
.024b
100
3
3
1
.284
.293
.878
.292
.313
.289
.896 .492 .104
a. 3 cells (37.5%) have expected count less than 5. The minimum expected count i
s
2.22.
b. The standardized statistic is -.154.
Interpretation:-The above chart and diagram shows that awareness of Mutual fund
is more
in the age between 30 and 40.There are more people who have awareness regarding
Mutual
Fund from 46 respondents 29 are aware it shows high awareness. People having age
above 50
have not much awareness regarding Mutual fund from 6 respondents 4 are not aware
and
only 2 are aware about Mutual Fund.
Hypotheses:-2 Occupation and awareness of Mutual Fund
Ho= Occupation have impact on awareness of mutual Fund
H1= Occupation have not impact on awareness of Mutual Fund
Cases
Valid Missing Total
occupation * awareness 100 100.0% 0 .0% 100 100.0%
occupation * awareness Cross tabulation
Awareness
Yes No Total
occupation student Count 5 2 7
% of Total 5.0% 2.0% 7.0%
business Count 16 12 28
% of Total 16.0% 12.0% 28.0%
service Count 18 12 30
% of Total 18.0% 12.0% 30.0%
profession Count 13 5 18
% of Total 13.0% 5.0% 18.0%
others Count 11 6 17
% of Total 11.0% 6.0% 17.0%
% of Total 63.0% 37.0% 100.0%
Chi-Square Tests
Value Df
Exact Sig.
(2-sided)
Exact Sig.
(1-sided)
Point
Probabilit
y
Pearson Chi-Square
Likelihood Ratio
Fisher's Exact Test
Linear-by-Linear Association
N of Valid Cases
1.419a
1.447
1.415
.220b
100
4
4
1
.841
.836
.639
.848
.846
.866
.666 .352 .062
a. 2 cells (20.0%) have expected count less than 5. The minimum expected count i
s 2.59.
b. The standardized statistic is -.469.
Interpretation:-After analyzing all the data can say service people are more awa
re about
Mutual Fund and business person also are more aware among all the despondence. S
tudents
are not more aware about Mutual Fund. From 18 Professional 13 are aware and 5 ar
e not
aware is shows more awareness in professionals.
Hypotheses 3:-Education level and awareness of Mutual Fund
Ho=Education have impact on awareness of Mutual fund
H1=Education have not impact on awareness of Mutual Fund
Cases
Valid Missing Total
Education qualification *
awareness
100 100.0% 0 .0% 100 100.0%
Education qualification * awareness Cross tabulation
awareness
yes no Total
Education qualification under graduate Count 14 9 23
% of Total 14.0% 9.0% 23.0%
graduate Count 30 15 45
% of Total 30.0% 15.0% 45.0%
post graduate Count 19 12 31
% of Total 19.0% 12.0% 31.0%
other Count 0 1 1
% of Total .0% 1.0% 1.0%
% of Total 63.0% 37.0% 100.0%
Chi-Square Tests
Value Df
Pearson Chi-Square
Likelihood Ratio
Linear-by-Linear Association
N of Valid Cases
2.046a
2.335
.126
100
3
3
1
.563
.506
.723
a. 2 cells (25.0%) have expected count less than 5. The minimum
expected count is .37.
Interpretation:-Here we Interpret that Education qualification have much impact
on
awareness of Mutual Fund out of 45 student 30 are aware and 15 are not aware. Am
ong all
the respondents most of the respondents are Graduate level. People who are not g
raduate
have not much awareness regarding Mutual Fund.
Hypothesis 4:-Occupation and way of invest of Mutual Fund
Ho=Occupation have impact on way of investment of Mutual fund
H1=Occupation have not an impact on way of investment of Mutual Fund
Cases
Valid Missing Total
occupation
invest
* way of
28 28.0% 72 72.0% 100 100.0%
occupation * way of invest Cross tabulation
Way of invest
lump sum s.i.p Total
occupation student Count 1 2 3
% of Total 3.6% 7.1% 10.7%
business Count 2 5 7
% of Total 7.1% 17.9% 25.0%
service Count 4 5 9
% of Total 14.3% 17.9% 32.1%
profession Count 6 0 6
% of Total 21.4% .0% 21.4%
Std. Residual 1.7 -1.7
others Count 1 2 3
% of Total 3.6% 7.1% 10.7%
% of Total 50.0% 50.0% 100.0%
Chi-Square Tests
Value Df
Asymp.
Sig. (2sided)
Exact Sig. (2sided)
Exact Sig.
(1-sided)
Point
Probabilit
y
Pearson Chi-Square
Likelihood Ratio
Fisher's Exact Test
Linear-by-Linear
Association
N of Valid Cases
8.063a
10.437
8.252
2.113b
28
4
4
1
.089
.034
.146
.085
.068
.055
.199 .099 .046
a. 10 cells (100.0%) have expected count less than 5. The minimum expected count
is 1.50.
b. The standardized statistic is -1.454
Interpretation:-Above chart and data shows that both the ways of investing into
Mutual
Fund are as fabulous. People choose lump sum option as much as sip. But we can s
ee that
people whose occupation is Profession choose only lump sum way of investing in m
utual
fund. Business people mostly choose sip as a way of their investment.
66
Hypotheses:-5 Annual income of people and type of Mutual Fund
Ho=Income of the people have impact on purchase of type of Mutual Fund
H1=Income of the people have impact on purchase of type of Mutual Fund
Cases
Valid Missing Total
Annual income * type of
mutual fund
31 31.0% 69 69.0% 100 100.0%
Annual income * type of mutual fund Cross tabulation
Type of mutual fund
TATA Franklin ICICI
mutual fund Templeton Reliance Prudential SBI Others Total
Annual below Count 1 0 0 1 2 3 7
income 100000 % of Total 3.2% .0% .0% 3.2% 6.5% 9.7% 22.6%
Std.
Residual
.1 -1.1 -1.1 -.3 .6 1.8
100000Count
2 0 4 1 1 2 10
300000 % of Total 6.5% .0% 12.9% 3.2% 3.2% 6.5% 32.3%
Std.
Residual
.6 -1.3 1.9 -.7 -.7 .3
300000Count
1 3 1 3 1 0 9
500000 % of Total 3.2% 9.7% 3.2% 9.7% 3.2% .0% 29.0%
Std.
Residual
-.1 1.3 -.4 1.0 -.6 -1.2
500000Count
0 2 0 1 2 0 5
above % of Total .0% 6.5% .0% 3.2% 6.5% .0% 16.1%
Std.
Residual
-.8 1.3 -.9 .0 1.0 -.9
Total Count 4 5 5 6 6 5 31
% of Total 12.9% 16.1% 16.1% 19.4% 19.4% 16.1% 100.0%
Chi-Square Tests
Asymp. Sig. (2Exact
Sig. (2Exact
Sig. (1Point
Value df sided) sided) sided) Probability
Pearson Chi-Square 21.920a 15 .110 .103
Likelihood Ratio 26.321 15 .035 .123
Fisher's Exact Test 18.130 .123
Linear-by-Linear Association 2.174b 1 .140 .150 .079 .015
N of Valid Cases 31
a. 24 cells (100.0%) have expected count less than 5. The minimum expected count
is .65.
b. The standardized statistic is -1.475.
Interpretation:-From the above data and chart we can analyze choice of the peopl
e in
purchasing Mutual fund as per their income level. People having annual income of
a l lake to
3 lake prefer reliance Mutual Fund. There is different choice of purchasing Mutu
al Fund.
DATA ANALYSIS
Age
Frequency Percent Valid Percent

Cumulative
Percent
Valid
Missing
Total
20-30
30-40
40-50
50-above
Total
System
13
46
35
6
100
1
101
12.9
45.5
34.7
5.9
99.0
1.0
100.0
13.0
46.0
35.0
6.0
100.0
13.0
59.0
94.0
100.0
Analysis:From
all the respondents there are more people who have age between 30-40 and less no
of
people are having age of less then 50.
Gender

Cumulative
Percent
Valid
Missing
Total
male
female
Total
System
70
30
100
1
101
69.3
29.7
99.0
1.0
100.0
70.0
30.0
100.0
70.0
100.0
Analysis:
From the all respondents there are 70 % male and 30% female. It shows that there
is more no.
of male then the female.
Occupation

Cumulative
Percent
Valid
Missing
Total
student
business
service
profession
others
Total
System
7
28
30
18
17
100
1
101
6.9
27.7
29.7
17.8
16.8
99.0
1.0
100.0
7.0
28.0
30.0
18.0
17.0
100.0
7.0
35.0
65.0
83.0
100.0
Analysis:
From all the respondents more respondents are service person and business person
. These
number is double then the profession and student
Annual income

Cumulative
Percent
Valid
Missing
Total
below 100000
100000-300000
300000-500000
500000-above
Total
System
9
32
31
9
81
20
101
8.9
31.7
30.7
8.9
80.2
19.8
100.0
11.1
39.5
38.3
11.1
100.0
11.1
50.6
88.9
100.0
Analysis:
There are more people who have there annual income within one lakh to five lakh.
People
having Income of below one lakh and above five lakh are very less.
Education qualification

Cumulative
Percent
Valid
Missing
Total
under graduate
graduate
post graduate
other
Total
System
23
45
31
1
100
1
101
22.8
44.6
30.7
1.0
99.0
1.0
100.0
23.0
45.0
31.0
1.0
100.0
23.0
68.0
99.0
100.0
Analysis:
Above graph shows that there are more people who complete there graduation and u
nder
graduate people are less number it shows that now a days education level is incr
eased.
Awareness

Cumulative
Percent
Valid yes 63 62.4 63.0 63.0
no 37 36.6 37.0 100.0
Total 100 99.0 100.0
Missing System 1 1.0
Total 101 100.0
Analysis:
Out of all the respondents 63% respondents are aware about Mutual Fund and 37%
respondents are not aware about Mutual Fund.
Source of awareness

Cumulative
Percent
Valid broker 10 9.9 15.2 15.2
friend/relative 9 8.9 13.6 28.8
bank 25 24.8 37.9 66.7
T.v/newspaper 12 11.9 18.2 84.8
AMC 9 8.9 13.6 98.5
other 1 1.0 1.5 100.0
Total 66 65.3 100.0
Total 101 100.0
Analysis:
From all the respondents most of the respondents are aware about Mutual Fund fro
m the bank
and others are aware from the T.V, News paper, Friends and Brokers.
Investment In M.F

Cumulative
Percent
Valid yes 34 33.7 34.0 34.0
no 66 65.3 66.0 100.0
Total 100 99.0 100.0
Total 101 100.0
Analysis:
From all the respondents 63% respondents are aware about Mutual Fund and among a
ll of
them only 34% have invest in the Mutual Fund.
Way of invest

Cumulative
Percent
Valid
Missing
Total
lump sum
s.i.p
Total
System
14
14
28
73
101
13.9
13.9
27.7
72.3
100.0
50.0
50.0
100.0
50.0
100.0
Analysis:
Above diagram shows that two ways of investing into Mutual Fund like Lump sum an
d S.I.P
are same famous people like Lump Sum investment as well as S.I.P (Systematic Inv
estment
Plan).
Type of mutual fund

Cumulative
Percent
Valid TATA mutual fund 4 4.0 11.8 11.8
Frenklin Templeton 5 5.0 14.7 26.5
Reliance 5 5.0 14.7 41.2
ICICI Prudential 6 5.9 17.6 58.8
SBI 6 5.9 17.6 76.5
Others 8 7.9 23.5 100.0
Total 34 33.7 100.0
Total 101 100.0
Analysis:
From above diagram we can say that there is no much difference in preference of
purchasing
Mutual fund.There is minor difference in purchasing different type of Mutual fun
d.
Awareness of tax benefit

Cumulative
Percent
Valid yes 41 40.6 65.1 65.1
no 22 21.8 34.9 100.0
Total 63 62.4 100.0
Total 101 100.0
Analysis:
In the above diagram we can see that more people are aware about tax benefit whi
ch is given
to the purchaser of the Mutual Fund. So tax benefit is more fabulous among the p
eople.
Option like in M.F

Cumulative
Percent
Valid growth 19 18.8 57.6 57.6
dividend 14 13.9 42.4 100.0
Total 33 32.7 100.0
Total 101 100.0
Analysis:
The above analysis shows that growth option is more Preferred then the dividend
option
among all investors of the Mutual fund.
Awareness of service in M.F

Cumulative
Percent
Valid E-mail alert 6 5.9 12.2 12.2
SMS alert 21 20.8 42.9 55.1
correspondents 5 5.0 10.2 65.3
24 hrs tall free no. 11 10.9 22.4 87.8
personal assistance 6 5.9 12.2 100.0
Total 49 48.5 100.0
Total 101 100.0
Analysis:
Above diagram shows that more no. of respondents know the SMS alert service whic
h is
provided by the Investor of Mutual Fund and less no. of respondents know the ser
vice of
correspondents.
81
Satisfaction level

Cumulative
Percent
Valid
Missing
extremely satisfied
satisfied
neutral
dissatisfied
extremely dissatisfied
Total
System
Total
8
11
6
6
3
34
67
101
7.9
10.9
5.9
5.9
3.0
33.7
66.3
100.0
23.5
32.4
17.6
17.6
8.8
100.0
23.5
55.9
73.5
91.2
100.0
Analysis:
From the above diagram we can say that mostly people are satisfied and extremely
satisfied
with Investment Company of Mutual Fund so we can say that Investment Company Pla
y a
Good role in Investment of Mutual Fund.
SUMMERY
AND
CONCLUSION
FINDINGS OF THE RESEARCH
.
Among all the respondents 63% are aware about Mutual Fund and 37% are not aware
about Mutual Fund.
.
From all aware respondents onl 34 respondents have invest in Mutual Fund.
.
There are 70% male and 30% female out of all the respondents and more no. of mal
e
are aware then the female about Mutual Fund.
.
Among 18 professionals 13 are aware and 5 are not aware about Mutual fund it sho
ws
that there is more awareness in professionals.
.
There are 23 respondents who are under graduate among them 14 are aware and 9 ar
e
not aware about Mutual Fund.
.
There are 45 respondents who are graduate among them 30 are aware about Mutual
Fund and 15 are not aware about Mutual Fund.
.
More respondents have their annual income between 1 lacks to 3 lacks and from th
em
most of the people are prefer Reliance Mutual Fund.
.
From all the respondents 67% respondents have awareness regarding Mutual Fund
through Bank and less no. of respondents are aware through broker.
.
50% respondents are investing in lump sum and 50% are investing in Systematic
Investment Plan.
.
65% respondents are known about Tax benefit and 35% are not aware about tax
benefit.
.
58% respondents like Growth Option and 42% respondents like Dividend Option.
.
From all the service provided by company SMS alert is more known by respondents
which is 55%.
.
Among all the respondents 33% are satisfied with their investment in Mutual Fund
and 24% are extremely satisfied with their investment. Only 8% are extremely
dissatisfied with their investment.
SUGESSIONS
After seeing the whole Data analysis and findings my suggestions for the industr
y are shown
as below.
.
The company should give the knowledge regarding Mutual Fund through
various sources like more advertisement, TV programmes etc. about what it
is? How it works? What is its benefit for us with its advertisement or in
programmes. Because many people have heard about it but don t know what
it is?
.
The company should also attract the low Income people by showing them the
benefits of the liquidity funds for the short Term to attract them.
.
As per survey Bank creates higher awareness so the Mutual Fund companies
should more collaborate with the Banks.
.
The company should also attract the customer through different schemes who
having knowledge about the Mutual Funds but not investing in Mutual Funds.
.
The company should also make aware the people about the AMFI exam and
should motivate them to be financial adviser to get more business.
.
The company should give information regarding Tax benefit to Invest into
Mutual Fund.
.
The company should organize seminar to give information about Mutual Fund
and should distribute brochures having detail of schemes of Mutual Fund.
LIMITATION OF THE RESEARCH
.
This research reflects on individual customer in Ahemdabad only. So findings and
suggestions given on the basis of this research cannot be extrapolated to the en

tire
population.
.
Sample size is 100 which is very small that is not enough to study the awareness
of
consumers of the country.
.
Respondents are not sincere and care full to fill up the questionnaire so we can
not find
right solution.
.
As sampling technique is convenient sampling so it may result in personal bias.
So
perfect result cannot be achieved.
.
The study might also consist of the respondents bias answer.
.
It take much time to go in different areas and fill up questionnaire so the timi
ngs are
also limited to make the Project.
.
To create hypothesis and make cross tabulation is little bit confusing technique
so it
may be a limitation.
.
In India people are not much care full and educated regarding Investment plan so
to
do this type of research is little hard.
CONCLUSION
After making the whole report I am concluding that this project measures the awa
reness
of Mutual Funds and its service. As Mutual Funds having good options and schemes
, so we
can grow it with creating the awareness among the people. It is also good for th
ose who want
to make their future in it. For that the only thing you need is to give time to
your money to
grow, they will surely give good returns and the other thing is the knowledge of
the all
product and schemes.
As there is lesser no. of people investing in the Mutual Fund in comparison of t
he other
instruments of the investment like L.I.C, post, savings a/c etc. So there is a g
ood chance of its
growing. Even Mutual Fund is also having the product as substitute of it. So the
industry can
get the benefit of it.
The industry cans aware more investors to invest in Mutual Fund. They can do the
se through
seminars, advertisement etc. They can also increase their sales by collaborating
with many
banks. They can also make more advisors by giving them more commission.
BIBLIOGRAPHY
Web sites
.
www.indiainfoline.com
.
www.amfindia.com
.
www.moneycontrol.com
.
www.google.com
.
www.wikipedia.com
.
www.sharemaketbasics.com
.
www.sharemarket.com
Books:
.
David F, Swenson. 2005. Unconventional Success. A fundamental Approach to
Personal Investment Free Press 416
.
D.C. Anjaria. Dhaivat Anjaria. 2001 AMFI s Mutual Fund Testing Program.
ANEXURE
Awareness about Mutual Fund

QUESTIONNAIRE
Dear Respondents,
We the students of MBA semester-II studying at International Business School, EI
ILM
University, Ahmedabad, are conducting a survey about Awareness of Mutual Fund .
This project is a part of our MBA curriculum and we would like to have your co o
peration
and full support to complete it so we would like you to provide us with your val
uable views
and opinions.
General information
1. Gender :
Male
2. Age:
20-3040-50
3. Occupation :
Student
Service
Others (specify) ______________
4. Annual income of family

Below 100000
300000-500000
Female
30-40
50-Above
business
profession
100000-300000500000 & above

5. Education Qualification
Under Graduate
Graduate
Post Graduate
Other _______(specify)
Research Questions
6.
Are you aware about Mutual Fund ?
Yes
No
7. From which source you come to know about Mutual Fund ?
Broker
Friend/Relative
Bank
T.V./News Paper
AMC (Asset Mgt. Company)
Others_______(specify)
8. Have you ever invest in Mutual Fund of any company?
Yes
No
9. Are you aware about the different ways of investing into Mutual Fund?
Yes
No
10. If yes, which way you like the most ?
Lump sum
S.I.P
11. Out of the following in which Mutual Fund you have invested?
TATA Mutual Fund
Franklin Templeton
Reliance
ICICI Prudential
SBI
Other
12. Are you aware about different tax benefit of investing into Mutual Fund?
Yes
No
13. Do you know about different option of investment in Mutual Fund?
Yes
No
If yes, which do you like most?
Growth
Dividend
14. Out of following which service you are aware which are provided after invest
ing in
Mutual Fund?
E-mail Alert
SMS Alert
Correspondents
24 hr Tall Free no.

Personal Assistance
15. To how much extent are you satisfied with the service offered by your invest
ment
company regarding Mutual Fund?
Extremely Satisfied
Satisfied
Neutral
Dissatisfied
Extremely dissatisfied
THANK YOU
DIFFERENT TERMINOLOGY
AMC
The AMC is the corporate entity, which markets and manager and manages a mutual
fund scheme and in return receives a management fee from the fund corpus. SEBI
specifies that an AMC must be separate entity the trust that manages it.
NAV
It is the value of unit of a Mutual Fund scheme and represents its true worth. N
AV is
arrived at by dividing total value of all investment made under the scheme by nu
mber
of units of the scheme. NAV is critical yardstick of the funds performance.
UNITS
Units in a mutual fund scheme are similar to shares of a joint company. These ar
e
always in denominations of Rs. 10 each the sum total of all the units constitute
s
corpus of mutual fund.
SPONSORS
Sponsor of a mutual fund are those who establish the mutual fund trust and the A
MC
they constitute the shareholders of the AMC and receive dividends on profits mad
e by
the AMC. SEBI rules stipulate that mutual fund trust as well as the AMC must
maintain an arms length relationship with the sponsors to avoid any conflict to
interests, which may affect the unit holders.
INCOME FUND
These Funds invest largely in fixed income securities like bonds and debentures.
Such
funds earn returns more regularly than a growth fund but level of returns over l
onger
periods normally lag behind those offered by growth funds while returns in such
funds may be regular, their scale may fluctuate depending upon the prevalent int
erest
rates and credit quality of the debt securities.
GROWTH FUNDS
Growth funds predominantly invest in stock market securities and carry risks lar
ger
than income funds. Since stock markets travel through a natural cycle of boom an
d
bursts one should normally stay invested inequity funds for a longer times to ea
rn
higher returns.
Equity funds may earn higher but they also carry larger risks. For risk taking i
nvestor
equity are best suited.
BALANCED FUNDS
A balanced fund is the mixture of income fund and growth fund invested partly in
equity to achieve a trade-of between risk and return.
CLOSE ENDED
In a close-ended fund an investor is allowed to subscribe only during the period
of the
initial offer. Close-ended funds mature after a specified period.
OPEN ENDED FUNDS
Those funds in which investor can invest & withdraw whenever they wish, after th
e
closing of initial offer. Withdrawals are allowed at NAV minus a back end load.
LOCK IN PERIOD
Time period during which investor can neither redeem nor they transfer their hol
dings
to others. Lock in period is imposed to allow fund manager to deploy money for a
n
adequate period of time to earn a reasonable return premature withdrawals may
destabilize the fund & are not beneficial to the interests of investors.
MANAGEMENT FEES
An AMC that mangers & markets a mutual fund scheme is entitled to a management
fee@ 1% to 25% of the total funds managed, it could be charged to the scheme
irrespective of the performance of the scheme.
REDEMPTION
Disbursement of unit capital on the maturity of that particular scheme to all it
s
existing unit holders.
MARKET PRICE
The price at which units of mutual funds are quoted in stock exchange where they
are
listed.
REGISTRAR
Organization appointed by an AMC to the schemes it is registered, monitored, and
regulated by SEBI, it provides required services like system capabilities back u
p,
accepts and processes investors applications in informs AMC about amounts
received/disbursed for subscription/ purchase/ redemption it also handles
communications with investors, perform data entry services and dispatches accoun
t
statements.
CUSTODAIN
Banking organization that keeps in safe custody all the securities & other instr
uments
belonging to the fund to insure smooth inflow & outflow of securities. It is als
o
approved regulated and registered with SEBI.
EXIT LOAD
Value of deduction from NAV on the date when one choose to withdraw from a fund,
load is imposed because withdrawals carry transaction cost to AMC it can not be
more than 6% of NAV of corpus as prescribed by SEBI many schemes offer
redemption facility without exit load.
ENTRY LOAD
Charge paid by unit holder when he invests an amount in the scheme. Mutual funds
incur many expenses during an issue, which are charged to the scheme. Such load
is
called entry load.
LIQUIDITY
Ability of investors to change its unit into cash within minimum time as and whe
n he
needs money.
TRANSPARENCY
Basic feature of mutual funds is transparency, their functioning is very efficie
nt, well
monitored & transparent working of AMC is regulated by SEBI it is audited weekly
,
it has to work under strict guidelines issued by SEBI, and its NAV is calculated
and
published daily so that there is no chance of any default in the working of Mutu
al
Funds.

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Summer Project Report

Awareness Regarding Mutual Fund

Under the Supervision:

Rank Particulars Page No.

(Prof. Nimesh Bhatt),

In today s trend of cut-throat competition, Masters of Business Administration (MB

MEASURES DESCRIPTION IDEAL RANGE

REGISTERING A MUTUAL FUND WITH SEBI?

An applicant proposing to sponsor a Mutual fund in India must submit an applicat

Date of Establishment October 1995

India Infoline Media and Research Services Limited

Mr. Nirmal Jain

R Venkataraman, co-promoter and Executive Director of India Infoline Ltd., is a

Registrar & Transfer Agent Shareholder Enquiries

A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to

Mutual Fund Name

Frequency Percent Valid Percent

Frequency Percent Valid Percent

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Frequency Percent Valid Percent

Frequency Percent Valid Percent

Frequency Percent Valid Percent

Frequency Percent Valid Percent

Frequency Percent Valid Percent

Frequency Percent Valid Percent

Frequency Percent Valid Percent

Frequency Percent Valid Percent

Frequency Percent Valid Percent

suggestions given on the basis of this research cannot be extrapolated to the en

Awareness about Mutual Fund

4. Annual income of family

100000-300000500000 & above

24 hr Tall Free no.

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