A PROJECT REPORT

ON
AWARENESS OF MUTUAL FUND AND ITS SCOPE
AT
KARVY STOCK BROKING LTD.

BY
MS.RESHMA SHARMA
MBA-I
B.G.I.M.T
SANGRUR
PUNJAB
 2007-2009

ACKNOWLEDGEMENT
I take immense pleasure in completing this project and submitting this final project report.

The whole summer internship period with KARVY STOCK BROKING LTD has been full of
learning and sense of contribution towards the organization. I would like to thank KARVY
STOCK BROKING LTD for giving us an opportunity of learning and contributing through this
project. I also take this opportunity to thank all those people that made this experience a
memorable one.

A successful project can never be prepared by the single efforts of the person to whom project
is assigned, but it also demand the help and guardianship of some conversant person who
helped the undersigned actively or passively in the completion of successful project.

In this context as a student of BHAIGURDAS INSTITUTE OF MANAGEMENT. I would

first of all like to express my gratitude to Ms. Risha Bansal for assigning me such a
worthwhile topic AWARENESS OF MUTUAL FUND AND ITS SCOPE to work upon in
KARVY STOCK BROKING LTD.

The project couldn’t have been complete without timely and vital help of other office staff.
Special thank to Mr. Ninad Raghatate, Mr. Vikrant Joshi, Ms. Sonal Chopra for their invaluable
guidance, keen interest, cooperation, inspiration and of course moral support through out my
project session.

2
 CERTIFICATE

This is to certify that Ms. Reshma Sharma from the Bhai Gurdas
Institute of Management , Sangrur , Punjab have successfully
complicated their term internship with Karvy Stock Broking Ltd.
From 4th May 2008 to 31st of July 2008 in partial fulfillment of MBA
curriculum as prescribed by B.G.I.M.T..

______________

3
 Mr. Ravi Gaikwad
(Senior Relationship Manager)

Reshma Sharma.

INDEX

PAGE.N
NO. PARTICULARS. O.

1. ACKNOWLEDGEMENT 2.

2. CERTIFICATE 3.

3. EXECUTIVE SUMMARY 5.

4. COMPANY PROFILE 7.

5. INTRODUCTION TO MUTUAL FUND 16.

• INVESTMENT & YOU
• MUTUAL FUND & YOU
• HISTORY OF MUTUAL FUNDS
• TYPES OF MUTUAL FUNDS
• ADVANTAGES & DRAWBACKS OF M. F.
• AMFI & MUTUAL FUNDS

6. ANALYSIS OF PROJECT 34.

• DATA COLLECTION
• DATA INTERPRETATION

7. PROJECT FINDINGS & RECOMMENDATIONS 49.

8. BIBILOGRAPHY 51.

4
 9. QUESTIONNAIRE 52.

EXECUTIVE SUMMARY:-
The project titled “AWARNESS OF MUTUAL FUND AND ITS SCOPE” being carried out
for KARVY STOCK BROKING LTD.

Karvy operates in various financial products and services like Consultancy, Stock Broking,
Mutual Funds, Insurance, Registrar and Transfer Agent, Research, Mapin etc.

The evaluation of financing planning has been increased through decades, which is best seen in
customer rise. Now a day’s investment of saving has assumed great importance.

According to the study of the Market, it is being observed that markets are doing well in
investments like, Mutual funds, Shares etc. In near future a proper financial planning is
required to invest money in all type of financial product because there is good potential in
market to invest.

The main objective of this project is to know the current scenario of investment and the
people’s awareness of various instruments available for Tax planning and Personal Financial
Advising facility provided by the KARVY STOCK BROKING LTD.

IT and Retail sector have been given more emphasis for the study of the project because it is
the only sector where all types of age group, Income class and different level of people are
represented.

5
COMPANY PROFILE

6
OVERVIEW:

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

EARLY DAYS:

The birth of Karvy was on a modest scale in 1981. It began with the vision and enterprise of a
small group of practicing Chartered Accountants who founded the flagship company …Karvy
Consultants Limited. Company started with consulting and financial accounting automation,
and carved inroads into the field of registry and share accounting by 1985. Since then, they
have utilized their experience and superlative expertise to go from strength to strength…to
better their services, to provide new ones, to innovate, diversify and in the process, evolved
Karvy as one of India’s premier integrated financial service enterprise.

Thus over the last 20 years Karvy has traveled the success route, towards building a reputation
as an integrated financial services provider, offering a wide spectrum of services. And we have
made this journey by taking the route of quality service, path breaking innovations in service,
versatility in service and finally…totality in service. Their highly qualified manpower, cutting-
edge technology, comprehensive infrastructure and total customer-focus has secured for them
the position of an emerging financial services giant enjoying the confidence and support of an
enviable clientele across diverse fields in the financial world.

7
Mile Stones:

Karvy – milestones
2003/04
Equity Derivatives broking commenced
Expanding Institutional segment clientele. Setting up of the Research 2001
desk and Private Client Group at Mumbai

1997
$
Custodial (DP ) services launched ADTO in broking crosses Rs 4,500 mn
Ranked@ no 1in IPO and in Mutual fund distribution
in 2003-04
DP accounts exceed 640,000
Broking accounts exceed 220,000 (retail)
Distribution of investment products (mutual 1990-95 #
WDM membership obtained
funds, IPOs, Bonds, etc)
Commenced NSE operations Branches – 495+
Commenced commodity and insurance broking
operations

1990
Retail broking operations (Cash segment)
commenced on the HSE**

1985
Share Registry and Transfer (R&T)
Business recently hived off to a JV with
Computershare, Australia

$ - Depository business
# - Wholesale Debt Market segment on the NSE
1982 @ - by number of applications mobilised
* - High Networth Individual segment
** - Hyderabad Stock Exchange

8
KARVY GROUP COMPANIES

(1) KARVY CONSULTANTS LIMITED

As the flagship company of the Karvy Group, Karvy Consultants Limited has always remained
at the helm of organizational affairs, pioneering business policies, work ethic and channels of
progress.

Having emerged as a leader in the registry business, the first of the businesses that Karvy
ventured into, company have now transferred this business into a joint venture with Computer
share Limited of Australia, the world’s largest registrar. With the advent of depositories in the
Indian capital market and the relationships that Company have created in the registry business,
Karvy believe that they were best positioned to venture into this activity as a Depository
Participant. Karvy were one of the early entrants registered as Depository Participant with
NSDL (National Securities Depository Limited), the first Depository in the country and then
with CDSL (Central Depository Services Limited). Today, Karvy service over 6 lakhs customer
accounts in this business spread across over 250 cities/towns in India and are ranked amongst
the largest Depository Participants in the country. With a growing secondary market presence,
they have transferred this business to Karvy Stock Broking Limited (KSBL), their associate
and a member of NSE, BSE and HSE.

The corporate website of the company, “www.karvy.com”, gives access to in-depth information
on financial matters including Mutual Funds, IPOs, Fixed Income Schemes, Insurance, Stock
Market and much more. A link called ‘Resource Center’, devoted solely to research conducted
by team of experts on various financial aspects like ‘Sector Research’, deals exclusively with
in-depth analysis of the key sectors of the Indian economy. Besides, a host of other links like
‘My Portfolio’ which acts as a personalized and customized financial measure, makes this site
extremely informative about investment options, market trends, news and also about our their
company and each of the services offered here.

(2) KARVY STOCK BROKING LIMITED

Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely
towards attaining diverse goals of the customer through varied services. Creating a plethora of
opportunities for the customer by opening up investment vistas backed by research-based
advisory services. Here, growth knows no limits and success recognizes no boundaries.
Helping the customer create waves in his portfolio and empowering the investor completely is
the ultimate goal.

Karvy is a Member of National Stock Exchange (NSE), The Bombay Stock Exchange (BSE),
and The Hyderabad Stock Exchange (HSE).

(3) KARVY INVESTORS SERVICES LIMITED

9
Merchant Banking- Recognized as a leading merchant banker in the country, Karvy are
registered with SEBI as a Category I merchant banker. This reputation was built by capitalizing
on opportunities in corporate consolidations, mergers and acquisitions and corporate
restructuring, which have earned us the reputation of a merchant banker. Raising resources for
corporate or Government Undertaking successfully over the past two decades have given us the
confidence to renew company focus in this sector.

Karvy quality professional team and their work-oriented dedication have propelled company to
offer value-added corporate financial services and act as a professional navigator for long term
growth of companies clients, which includes leading corporate, State Governments, foreign
institutional investors, public and private sector companies and banks, in Indian and global
markets.

Karvy financial advice and assistance in restructuring, divestitures, acquisitions, de-mergers,

spin-offs, joint ventures, privatization and takeover defense mechanisms have elevated
company relationship with the client to one based on unshakable trust and confidence.

(4) KARVY COMPUTERSHARE PVT. LIMITED

Karvy have traversed wide spaces to tie up with the world’s largest transfer agent, the leading
Australian company, Computershare Limited. The company that services more than 75
million shareholders across 7000 corporate clients and makes its presence felt in over 12
countries across 5 continents has entered into a 50-50 joint venture with KARVY.

Mutual Fund Services

Karvy have attained a position of immense strength as a provider of across-the-board transfer

agency services to AMCs, Distributors and Investors.

Nearly 40% of the top-notch AMCs including prestigious clients like Deutsche AMC and UTI
swear by the quality and range of services that company offer. Besides providing the entire
back office processing, Karvy provide the link between various Mutual Funds and the investor,
including services to the distributor, the prime channel in this operation.

Karvy service enhancements such as ‘Karvy Converz', a full-fledged call center, a top-line
website (www.karvymfs.com), the ‘m-investor' and many more, creating a galaxy of customer
advantages. www.karvymfs.com

10
Issue Registry

In company voyage towards becoming the largest transaction-processing house in the Indian
Corporate segment, KARVY have mobilized funds for numerous corporate, and emerged as the
largest transaction-processing house for the Indian Corporate sector. With an experience
of handling over 700 issues, Karvy today, has the ability to execute voluminous transactions
and hard-core expertise in technology applications have gained company the No.1 slot in the
business. Karvy is the first Registry Company to receive ISO 9002 certification in India
that stands testimony to its stature

Corporate Shareholder Services

Karvy has been a customer centric company since its inception. Karvy offers a single platform
servicing multiple financial instruments in its bid to offer complete financial solutions to the
varying needs of both corporate and retail investors where an extensive range of services are
provided with great volume-management capability.

Today, Karvy is recognized as a company that can exceed customer expectations which is the
reason for the loyalty of customers towards Karvy for all his financial needs. An opinion poll
commissioned by “The Merchant Banker Update” and conducted by the reputed market
research agency, MARG revealed that Karvy was considered the “Most Admired” in the
registrar category among financial services companies.

(5) KARVY GLOBAL SERVICES LIMITED

The specialist Business Process Outsourcing unit of the Karvy Group. The legacy of expertise
and experience in financial services of the Karvy Group serves us well as company enter the
global arena with the confidence of being able to deliver and deliver well.

Here company offer several delivery models on the understanding that business needs are
unique and therefore only a customized service could possibly fit the bill. KARVY service
matrix has permutations and combinations that create several options to choose from.

KARVY is in re-engineering and managing processes or delivering new efficiencies,

company’s service meets up to the most stringent of international standards. Their outsourcing
models are designed for the global customer and are backed by sound corporate and operations
philosophies, and domain expertise. Providing productivity improvements, operational cost
control, cost savings, improved accountability and a whole gamut of other advantages.

KARVY operate in the core market segments that have emerging requirements for specialized
services. Their wide vertical market coverage includes Banking, Financial and Insurance
Services (BFIS), Retail and Merchandising, Leisure and Entertainment, Energy and Utility and
Healthcare.

11
(6) KARVY COMMODITIES BROKING LIMITED

At Karvy Commodities, they are focused on taking commodities trading to new dimensions of
reliability and profitability. They have made commodities trading, an essentially age-old
practice, into a sophisticated and scientific investment option.

Company enables trade in all goods and products of agricultural and mineral origin that include
lucrative commodities like gold and silver and popular items like oil, pulses and cotton through
a well-systematized trading platform.

The technological and infrastructural strengths and especially the street-smart skills make them
an ideal broker. Their service matrix is holistic with a gamut of advantages, the first and
foremost being their legacy of human resources, technology and infrastructure that comes from
being part of the Karvy Group.

Their wide national network, spanning the length and breadth of India, further supports these
advantages. Regular trading workshops and seminars are conducted to hone trading strategies
to perfection. Every move made is a calculated one, based on reliable research that is converted
into valuable information through daily, weekly and monthly newsletters, calls and intraday
alerts. Further, personalized service is provided here by a dedicated team committed to giving
hassle-free service while the brokerage rates offered are extremely competitive.

Karvy’s commitment to excel in this sector stems from the immense importance that
commodity broking has to a cross-section of investors & dash; farmers, exporters, importers,
manufacturers and the Government of India itself.

(7)KARVY INSURANCE BROKING PRIVATE LIMITED

At Karvy Insurance Broking Pvt. Ltd., they provide both life and non-life insurance products to
retail individuals, high net-worth clients and corporate. With the opening up of the insurance
sector and with a large number of private players in the business, they are in a position to
provide tailor made policies for different segments of customers. In their journey to emerge as
a personal finance advisor, they will be better positioned to leverage their relationships with the
product providers and place the requirements of their customers appropriately with the product
providers. With Indian markets seeing a sea change, both in terms of investment pattern
and attitude of investors, insurance is no more seen as only a tax saving product but also
as an investment product. By setting up a separate entity, we would be positioned to provide
the best of the products available in this business to their customers.

KARVY have wide national network, spanning the length and breadth of India, further
supports these advantages. Further, personalized service is provided here by a dedicated team
committed in giving hassle-free service to the clients.

12
KARVY Alliances

Karvy Computershare Private Limited is a 50:50 joint venture of Karvy Consultants Limited
and Computershare Limited, Australia. Computershare Limited is world's largest -- and only
global -- share registry, and a leading financial market services provider to the global securities
industry.

The joint venture with Computershare, reckoned as the largest registrar in the world, servicing
over 60 million shareholder accounts for over 7,000 corporations across eleven countries
spread across five continents. Computershare manages more than 70 million shareholder
accounts for over 13,000 corporations around the world.

Karvy Computershare Private Limited, today, is India's largest Registrar and Share Transfer
Agent servicing over 300 corporate and mutual funds and 16 million investors.

Quality Policy
To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, by
combining its human and technological resources, to provide superior quality financial
services. In the process, Karvy will strive to exceed Customer's expectations.

Quality Objectives

As per the Quality Policy, Karvy will:

Build in-house processes that will ensure transparent and harmonious relationships with its
clients and investors to provide high quality of services.

Establish a partner relationship with its investor service agents and vendors that will help in
keeping up its commitments to the customers.

Provide high quality of work life for all its employees and equip them with adequate
knowledge & skills so as to respond to customer's needs.

Continue to uphold the values of honesty & integrity and strive to establish unparalleled
standards in business ethics.

13
 Use state-of-the art information technology in developing new and innovative financial
products and services to meet the changing needs of investors and clients.

Strive to be a reliable source of value-added financial products and services and constantly
guide the individuals and institutions in making a judicious choice of same.

Strive to keep all stake-holders (shareholders, clients, investors, employees, suppliers and
regulatory authorities) proud and satisfied.

Achievements
• Among the top 3 stock brokers in India (4% of NSE volumes)

• India's No. 1 Registrar & Securities Transfer Agents

• Top most Depository Participants

• Largest Network of Branches & Business Associates

• ISO 9002 certified operations by DNV

• Among top 10 Investment bankers

• Largest Distributor of Financial Products

• Adjudged as one of the top 50 IT uses in India by MIS Asia

• Full Fledged IT driven operations

14
INTODUCTION TO
MUTUAL FUNDS

15
Introduction:

Mutual funds are for everyone. Around the world, millions of investor invests in mutual
funds because of their safety, ease of investing and the many advantages they offer. It is very
necessary before investing that you know some basics of investing which are given below.It is
best option for those investors who don’t have time to manage their fund.

Investments and you:

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

concepts make the process of investment decision-making much easier and the experience
much more enjoyable. The following step can help you get started on your path to becoming a
successful investor:

1. Identify your financial needs and goals:

The first step is to get a clear understanding of your own financial needs and goals. Ask
yourself the question –When do I need money and for what purpose? List down your financial
goals and when they will materialise (daughter’s higher education after 6 years, purchase of a
house after 10 years), and how much money you will need for the same. The answer will help
you arrive at the time frame for your investment – short term, medium term or long term.

Financial Goals Amount required Year’s to achieve Investment horizon

at today’s price your goal

Retirement Rs. 25 Lakhs 20 years Long term

Daughter’s higher Rs. 2 Lakhs 6 years Long term

16
 Education

Buying a car Rs. 4 Lakhs 2 years Medium term

Son’s computer Rs. 0.5 Lakhs 6 months Short term

course

2. Understand your tolerance to risk:

Before making an investment decision, it is very necessary for an investor to know his
risk tolerance limits. Will he be comfortable with fluctuations in the value of his investments?
Or would he prefer to settle down for a lower return without many ups and downs. By knowing
risk tolerance limit of himself an investor can decide his portfolio and also choose from a
variety of financial investment tools , one which suit his portfolio the most.

3. Estimate your required rate of return:

Your required rat

e of return depends on your financial goals and the time you have to achieve them. Take an
example that your retirement goal at 58 years is Rs. 20 Lakhs and your monthly savings is Rs.
5000, your required rate of return depending on your current age would be:

Present Age Returns

43 years 9.5 %

48 years 21.2%

As you can see, the later you start, the higher will be your required rate of return, hence as your
investment horizon reduces, for the same level of saving you may need to take higher risk.
Alternatively, if you were not willing to take a higher risk, you would have to save a higher
amount every month- Rs 9800, almost twice the original savings required to achieve your
target accumulation.
These three steps give a very basic idea about how to invest, when an investor is seeking
investment in different financial tools. Though there are different steps of investment in each
financial tool, these acts as blue print for them too.

17
Mutual Funds and You:

What is a mutual fund?

A mutual fund is a type of financial intermediary that pools the funds of investors who
seek the same general investment objective and invests them in a number of different types of
financial claims (e.g. equity shares, bonds, money market instrument). These pooled funds
provide thousands of investors with proportional ownership of diversified managed by
professional investment managers.

Where do mutual funds invest?

Broadly, mutual funds invest basically in three types of asset classes:

Stocks: Stocks represent ownership or equity in a company. These are also called as
shares.
Bonds: These represent debt from companies, financial institutions or government agencies.
Money Market Instruments: These include short term debt instrument such as treasury bills,
certificates of deposits and inter bank money.

History of Mutual Funds in India:

In India the setting up of Unit Trust of India (UTI) in 1963 marked the advent of mutual
fund industry. Unit Trust of India was set up by an Act of Parliament. The purpose of
establishing of Unit Trust of India was to give a fillip to the equity market. In the wake of Indo-
China war of 1962, there was shortage of savings going into industrial investment for
economic development. There was a need to mobilize adequate amount of risk capital for
industrial enterprise. The household savings were sought to be channelized into primary and
secondary market through units. However, in the initial years, the emphasis in UTI was on
income product. MasterShare launched in 1986 ushered in the equity-oriented schemes in
India. Unit Trust of India launched a variety of innovative products suited to meet diverse
needs of investors, virtually the complete life cycle of investors.

Evolution of Mutual Fund in India:

18
 The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank the. The history of mutual
funds in India can be broadly divided into four distinct phases.

First Phase: 1964-1987

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up
by the Reserve Bank of India and functioned under the Regulatory and administrative control
of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in place
of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had
Rs.6, 700 crores of assets under management.

Second Phase: 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of
India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987
followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct
92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in
December 1990.
At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004
crores.

Third Phase: 1993-2003 (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, 1993 was the
year in which the first Mutual Fund Regulations came into being, under which all mutual
funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now
merged with Franklin Templeton) was the first private sector mutual fund registered in July
1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI
(Mutual Fund) Regulations 1996
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI
(Mutual Fund) Regulations 1996

Fourth Phase: Since 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of
India with assets under management of Rs.29, 835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other schemes.
The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the purview of the
Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of
the erstwhile UTI which had in March 2000 more than Rs.76, 000 crores of assets under
19
management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of consolidation and growth. As at the
end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under
421 schemes.

The graph indicates the growth of assets over the years

20
Funds for All Reasons and All Seasons:
TYPES OF MUTUAL FUNDS: -
Mutual Funds have specific investment objectives such as growth of capital, safety of
principal current income or tax exempt income, one can select one fund or any number of
different funds to help one meets ones specific goals. In general mutual fund fall under 3
general categories: -

 Equity fund invest in shares of common stocks.

 Fixed income funds invest in government or corporate securities which offer fixed rate
of returns.
 Balanced fund invest in a combination of both stocks and bonds.

AGGRESSIVE GROWTH FUNDS :-

These funds seek to provide maximum growth of capital with secondary emphasis on
dividend or interest income. They invest in common stocks with a high potential for rapid
growth and capital appreciation.
Aggressive growth funds are suitable for those investors who can afford to assume the
risk of potential loss in value of their investment in the hope of achieving substantial and rapid
gains. They are not suitable for investors who must conserve their principal or who must
maximize their current income.

GROWTH FUNDS:-

Like aggressive growth funds, growth fund generally invests in stocks for growth rather
than income. They are considered more conservative in their approach because they usually
invest in established companies to achieve long-term growth. Growth fund provides low
current income but the investor principal is more stable then it would be in an aggressive
growth fund. While the growth potential may be less over the short term, many growth funds
have superior long-term performance records.
These funds are suitable for growth oriented investors but not investors who are unable to
assume risk or who are dependent on maximizing current income from there investments.
21
GROWTH AND INCOME FUNDS:-

Growth and income funds seek long-term growth of capital as well as current income.
The investments strategies use to reach these goals vary among funds.
Growth and income funds have low to moderate stability of principal and moderate
potential for current income and growth. They are suitable for investors who can assume some
risk to achieve growth of capital but want to maintain a moderate level of current income.

FIXED INCOME FUNDS:-

The goal of fixed income fund is to provide high current income consistent with the
level of capital. Growth of capital is of secondary importance.
Fixed income funds offer a higher level of current income than money market funds, but
a lower stability of principal. Fixed income funds are suitable for investors who want to
maximize current income and who can assume a degree of capital risk in order to do so.

EQUITY FUNDS:-

Funds that invest in stocks represent the largest category of mutual fund. Generally the
investment objective of this class of fund is long-term capital growth with some income. There
are however many type of equity funds.

BALANCED FUNDS:-

The Balanced funds aims to provide both growth and income. These funds invest in both
shares and fixed income securities in the proportion indicated in their offer documents. It is an
idea for investors who are looking for the combinations of income and moderate growth.

MONEY MARKET FUNDS/ LIQUID FUNDS:-

For the cautious investors these funds provide a very high stability of principal while
seeking a moderate to high current income. They invest in highly liquid; virtually risk free,
short-term debt securities of agencies of the Indian government, banks and corporation and
treasury bills. Because of their short-term investments, money market mutual funds are able to
keep a virtually constant unit price; only the yield fluctuates.
Money market funds are suitable for those investors who want high stability of principal and
current income with immediate liquidity.

SPECIALITY / SECTOR FUNDS:-

These funds invest in securities of a specific industry or sector of the economy such as
health care, technology, leisure, utilities or precious metals. The funds enable investor to
diversify holding among many companies within an industry, a more conservative approach
than investing directly in one particular company.
22
 Sector funds offer a opportunity for sharp capital gains in cases where the fund’s industry
is “in favor” but also entail the risk of capital losses when the industry is out of favor. While
sectors funds restrict holdings to a particular industry, other specialty funds such as index funds
gives investors a broadly diversified portfolio and attempt to mirror the performance of various
market averages.

OPEN ENDED SCHEMES:-

Open-ended schemes do not have a fixed maturity period. Investors can buy or sell units
at NAV- related prices from and to the mutual fund on any business day. These schemes have
unlimited capitalization, open-ended schemes do not have a fixed maturity, there is no cap on
the amount you can buy from the fund and the unit capital keep growing. These funds are not
generally listed on any exchange.
Open-ended schemes are preferred for their liquidity. Such funds can issue and redeem
units any time during the life of schemes. Hence unit capital of open-ended funds can fluctuate
on a daily basis. The advantages of open ended schemes are: -

1. Any time exit option

2. Any time enter option.

CLOSE ENDED SCHEMES:-

Close-ended schemes have fixed maturity periods. Investors can buy into these funds
during the period when these funds are open in the initial issue. After that such scheme cannot
issue new units except in case of bonus or right issue. However after the initial issue you can
buy or sell units of the schemes on the stock exchange where they are listed. The market price
of the unit could vary from the NAV of the schemes due to demand and supply factor

23
HOW LONG TO KEEP INVESTMENT TO GET MAXIMUM RETURNS

Technically open-ended funds you can withdraw your investments even within a week,
but to get desired returns positive time frame is required are:

Funds Time Period

Equity Funds 3 Years (plus)

Balanced Funds 18 months to 3 Years

MIP’s 1 Year (plus)

Income Funds 6 months to 1 Year

Liquid Funds few days to 6 months

WHAT RETURNS CAN I EXPECT IF I KEEP MY MONEY FOR SUGGESTED TIME

FRAMES

Funds Returns

Sector funds 22% to 25% p.a

Balance funds 15% to 18% p.a

24
 MIP’s Pension Plans 12% to 15% p.a

Income Funds 10% to 12% p.a

Liquid Funds 7% to 9% p.a

The above-mentioned returns in the table are indicative and not assured. All investments
in MUTUAL FUNDS are securities and are subject to market risk and the NAVs of the
schemes may go up and down depending upon the factors and forces affecting the security
market including the fluctuations in the internal rates .The past performance of the MUTUAL
FUNDS is not indicative of future performance.

THE RISK RETURNS GRAPHS FOR VARIOUS FUNDS:-

Sector Funds

R Equity Funds
E
T Balanced Funds
U
R Income Funds
N
S
Liquid Funds

RISKS

The above Graph shows the Risk and Returns generated by different Funds. Liquid Funds are
less Risky and also generate less Returns where as Sector Funds are more Risky but generate
more Returns by the example of above two Funds it is clear that Risk and Returns are directly
proportional to each other. Other Funds like Equity Funds, Balanced Funds and Income Funds
are also gives the same percentage of Returns as the Risk involved.

25
ADVANTAGE OF MUTUAL FUND:-

The advantages of investing in a Mutual Fund are:

• Diversification: The best mutual funds design their portfolios so individual

investments will react differently to the same economic conditions. For example,
economic conditions like a rise in interest rates may cause certain securities in a
diversified portfolio to decrease in value. Other securities in the portfolio will respond
to the same economic conditions by increasing in value. When a portfolio is balanced in
this way, the value of the overall portfolio should gradually increase over time, even if
some securities lose value.

• Professional Management: Most mutual funds pay topflight professionals to manage

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

• Regulatory oversight: Mutual funds are subject to many government regulations that
protect investors from fraud.

• Liquidity: It's easy to get your money out of a mutual fund. Write a check, make a call,
and you've got the cash.

• Convenience: You can usually buy mutual fund shares by mail, phone, or over the
Internet.

• Low cost: Mutual fund expenses are often no more than 1.5 percent of your
investment. Expenses for Index Funds are less than that, because index funds are not
actively managed. Instead, they automatically buy stock in companies that are listed on
a specific index.

• Transparency: Mutual Fund schemes are said to be Transparent because they show
the clear allocation of Funds to Investors.

26
• Flexibility: Mutual funds are flexible because they change time to time and also if an
Investor wants his money back before the maturity of the Fund He/she can easily
redeem it.

DRAWBACKS OF MUTUAL FUNDS:-

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

• No Guarantees:

No investment is risk free. If the entire stock market declines in value, the value of mutual
fund shares will go down as well, no matter how balanced the portfolio. Investors
encounter fewer risks when they invest in mutual funds than when they buy and sell stocks
on their own. However, anyone who invests through a mutual fund runs the risk of losing
money.

• Fees and commissions:

All funds charge administrative fees to cover their day-to-day expenses. Some funds also
charge sales commissions or "loads" to compensate brokers, financial consultants, or
financial planners. Even if you don't use a broker or other financial adviser, you will pay a
sales commission if you buy shares in a Load Fund.

• Taxes:

During a typical year, most actively managed mutual funds sell anywhere from 20 to 70
percent of the securities in their portfolios. If your fund makes a profit on its sales, you will
pay taxes on the income you receive, even if you reinvest the money you made.

• Management risk:

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

27
ASSOCIATION OF MUTUAL FUNDS IN INDIA:-

With the increase in mutual fund players in India, a need for mutual fund association in
India was generated to function as a non-profit organization. Association of Mutual Funds in
India (AMFI) was incorporated on 22nd August 1995.
AMFI is an apex body of all Asset Management Companies (AMC), which has been
registered with SEBI. Till date all the AMCs are that have launched mutual fund schemes are
its members. It functions under the supervision and guidelines of its Board of Directors.
Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to
a professional and healthy market with ethical lines enhancing and maintaining standards. It
follows the principle of both protecting and promoting the interests of mutual funds as well as
their unit holder

The objectives of Association of Mutual Funds in India:-

The Association of Mutual Funds of India works with 30 registered AMCs of the country.
It has certain defined objectives, which juxtaposes the guidelines of its Board of Directors. The
objectives are as follows:

 This mutual fund association of India maintains high professional and ethical standards
in all areas of operation of the industry. It also recommends and promotes the top class
business practices and code of conduct which is followed by members and related
people engaged in the activities of mutual fund and asset management. The agencies
that are by any means connected or involved. In the field of capital markets and
financial services also involved in this code of conduct of the association.

 AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual fund
Industry.

 Association of Mutual Fund in India do represent the Government of India, the Reserve
Bank of India and other related bodies on matters relating to the Mutual Fund Industry.

 It develops a team of well qualified and trained Agent distributors. It implements a

program of training and certification for all intermediaries and other engaged in the
mutual fund industry.

 AMFI undertakes all India awareness programmed for investor’s in order to promote
proper understanding of the concepts and working of mutual funds.

 At last but not the least association of mutual fund of India also disseminate
information’s on Mutual Fund Industry and undertakes studies and research either
directly or in association with other bodies.

28
Regulatory Aspects:

Schemes of mutual funds:-

• The Asset management company shall launch no schemes unless the trustees approve
such scheme and a copy of the offer has been filed with the Board.
• Every mutual fund shall along with the offer documents of each scheme pay filing fees.
• The offer document shall contain disclosures which are adequate in order to enable the
investors to make informed investment decision including the disclosure non maximum
investments proposed to be made by the scheme in the listed securities of the group
companies of the sponsor. A close-ended scheme shall be fully redeemed at the end of
the maturity period. “Unless a majority of the unit holders otherwise decide for its
rollover by passing a resolution”.

• The mutual fund and asset management company shall be liable to refund the
application money to the applicants:-

• If the mutual fund fails to receive the minimum subscription amount referred to in
clause (i) of sub- regulation.

• If the moneys received from the applicants for units are in excess of subscription as
referred to in clause (ii) of sub-regulation.

The asset management company shall issue to the applicant whose:

 Application has been accepted, unit certificates or a statement of accounts

 Specifying the number of units allotted to the applicant as soon as possible
 But not later than six weeks from the date of closure of the initial
 Subscription list and or from the date of receipt of the request from the unit

29
  Holders in any open ended scheme.

Rules Regarding Advertisement:-

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

Investment objectives and valuation policies:-

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

 Every asset management company for each scheme shall keep and maintain proper
book of accounts, records and document, for each scheme so as to explain its
transaction and to disclose at any point of time the financial position of each scheme
and in particular give a true and fair view of the state of affairs of the fund and intimate
to the board the place where such books of accounts, records and documents are
maintained.

 The financial year for all the scheme shall end as of March 31 of each year. Every
mutual fund or the asset management company shall prepare in respect of each
financial year an annual report and annual statement of accounts of the schemes and the
fund as specified in Eleventh Schedule.

 Every mutual fund shall have the annual statement of accounts audited by an auditor
who is not in any way associated with the auditor of the asset management comp

Procedure for Action In Case Of Default:-

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

Restrictions on Investments:

• A mutual fund scheme shall not invest more than 15% of its NAV in debt instrument
issued by a single issuer, which are rated not below investment grade by a credit rating
agency authorize to carry out such activity under the act. Such investment limit may be
extended to 20% of the NAV of the scheme with the prior approval of the Board of
Trustees and the Board of Asset Management Company.

• A mutual fund Scheme shall not invest more than 10% of its NAV in unrated debt
instrument issued by a single issuer and the total investment in such instruments shall

30
 not exceed 25% of the NAV of the Board of Trustees and the Board of Asset
management.

• No mutual funds under all its schemes should own more than 10% of any company’s
paid up capital carrying voting rights.

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

• The securities so transferred shall be in conformity with the investment objectives of

the scheme to which such transfer has been made.

• A scheme may invest in another scheme under the same asset management company or
any other mutual fund without charging any fees, provided that aggregated intercourse
inter scheme investment made by all schemes under the same management or in
schemes under the management of any other asset management company shall not
exceed 5% of the net asset value of the mutual fund.

The initial issue expenses in respect of any scheme may not exceed 6% of the
funds raised under that scheme.

• Every mutual fund shall buy and sell securities on the basis of deliveries and shall in all
cases of purchases, take delivery of relative securities and in all cases of sale, deliver
the securities and shall in no case put itself in a position whereby it has to make short
sale or carry forward transaction or engage in Badla finance.

• Every mutual fund shall get the securities purchased or transferred in the name of the
mutual fund on account of the concerned scheme, wherever investments are intended to
be of long-term nature.

• Pending deployment of funds of a scheme a mutual fund can invest the funds of the
scheme in short term deposits of scheduled commercial banks.

• No mutual fund scheme shall make any investment in;

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

 Any security issued by way of private placement by an associate or group

company of the sponsor.

 The listed securities of group companies of the sponsor which is in excess of

30% of the net assets (of all the schemes of a mutual fund)

31
  No mutual fund scheme shall invest more than 105 of its NAV in the equity
shares or equity related instrument of any company. Provided that, the limit of
10 percent shall not be applicable for investments in index fund or sector or
industry specific schemes.

 A Mutual fund scheme shall not invest more than 5% of its NAV in the equity
shares or equity related investments in case of open-ended schemes and 10 % of
its NAV in case of close ended schemes.

Some facts for the growth of mutual funds in India:-

 100% growth in the last 6 years.

 Number of foreign AMC’s is in the queue to enter the Indian markets like Fidelity
Investments, US based, with over US$1trillion assets under management worldwide.

 Our saving rate is over 23%, highest in the world. Only channelizing these savings in
mutual funds sector is required.

 We have approximately 29 mutual funds which is much less than US having more than
800. There is a big scope for expansion.

 'B' and 'C' class cities are growing rapidly. Today most of the mutual funds are
concentrating on the 'A' class cities. Soon they will find scope in the growing cities.

 Mutual fund can penetrate rural like the Indian insurance industry with simple and
limited products.

 SEBI allowing the MF's to launch commodity mutual funds.

32
ANALYSIS

33
PROBLEM STATEMENT:-

Due to the falling Rate of Interest on Bank deposits, it is obvious that Investment in
Mutual Fund will grow in year to come. However lack of Awareness of Mutual Fund is a
hindering factor in expected growth of Mutual Fund Business. Under noted problems are
envisaged in this area:
• Difficult in convincing people for investment.
• Difficult to change mind of the investor according to age and
Profession.
• Difficult to make an approach to investors.
• Difficult to take an appointment with professional people.
• Difficult to get the documents required for formalities from investors
• Difficult to overcome an impassionate person who wants return in less time.
• Difficult to follow up the people whose names are being stored in a data.
• Difficult to remove the fear of risk from the minds of investors.

OBJECTIVE OF STUDY:-

In view of the problem cited above, the study aims at analyzing the following major
issues:
34
 • To know the awareness of MUTUAL FUND among people.
• To know the different Asset management companies involve in MUTUAL FUND.
• To know the different aspects of MUTUAL FUND according to different age, profession
etc.
• To see the interest of people in investing in MUTUAL FUNDS.
• To know the future of MUTUAL FUNDS in India.
• To know the different attitudes of people regarding risk, rate of return, period of
investment etc.
• To study the diversification of mutual fund.

METHODOLOGY OF STUDY:

Research can be defined as a systemized effort to gain new knowledge. A research is

carried out by different methodologies which have their own pros and cons. Research
methodology is a way to solve research in study and solving research problems along with
logic behind them are defined through research methodology. Thus while talking about
research methodologies we are not only talking of research methods but also consider the logic
behind the methods. We are in context of our research studies and explain why it is being used
a particular method or technique and why the others are not used. So that research result is
capable of being evaluated either by researcher himself or by others.

RESEARCH METHODOLOGY:

Research has its special significance in solving various operational and planning problem of
business and industry. Research methodology is a way to systematically analyze the research
problem.

ASSUMPTIONS:

1. It has been assumed that sample of hundred represents the whole population
2. The information given by the customer is unbiased

LITERATURE SURVEY:

35
The project is based on pure findings of facts

Development of Working Hypothesis: The hypothesis could be developed by discussing with

the consulting department heads and guides about this exploratory research and reach to the
conclusion that the data is to be collected by personal interaction with the clients, asking them
about their investment planning and their need for financial advisory service from KARVY
Stock Broking Ltd.
First of all are they aware of tax and investment planning or not and then analyzing the
findings to reach to the objectives of research.

COLLECTION OF DATA:
This research is solely based on primary research done by means of questionnaires
targeted to respondents who primarily belong to the business and service sector. The sample
size is 100.
a. Sampling Methods: A sample is the representative of the populations which will predict
the behaviors of the whole universe
b. The sampling size put under 2 categories: Probability Sampling and Non Probability
Sampling.

EXECUTION OF PROJECT

It is very essential in the research process to know the accuracy of the finding’s which depends
on how systematically the study has been carried out so that it can make sense.
We have executed the project after prior discussion with our guide and structured in the
following steps:
a. Preparation of a questionnaire
b. The focal point of the designing the questionnaire was to comprehend the current
investment scenario
c. This questionnaire was primarily aimed to respondents who belong to the service and
business class people
d. The questionnaires were discussed through personal interface with the respondents

LIMITATIONS OF STREAMLINING RESULTS:

36
 Every work has its own limitations. Limitations are extent to which the process should not
exceed. The following limitations for the project are:
1. Duration of project was not enough to make our conclusion on such a vast subject.
Time constraints has also become a major limitation
2. The sample size taken for drawing the conclusion was not sizeable
3. Investor ignorance was faced during discussions with respondents

Q1. Do you invest regularly?

YES 89
NO 11
TOTAL 100

Percentage of people making any

investment

11%

YES
NO

89%

It has been observed that approximately 90% of the correspondents invest in some or the
other financial instrument. Though the percentage of choice of investment may vary due
to different factors such as age, education, risk etc.
37
Q2. Do you invest using-
a. Scientific Tools b. By Intuition

Scientific Tools 47
By Intuition 53
Total 100

It has been observed that there is no major difference between the percentage of people
who invest using scientific tools and those whose who believe in their intuition but it is
seen that the younger generation is more leaning towards usage of scientific tools than
their peers.

Methods of investment

47%
scientific tools
by intution
53%

Q3. What are you preferred investment priorities?

a. Insurance

YES 77
NO 23
TOTAL 100
LIC

23%

YES
NO

38
77%
A major chunk who have been interviewed it has been observed that almost 80% have
some kind of insurance policy. It has also been observed that though LIC is a public
sector undertaking, people of all ages have more faith in it as compared to other private
sector companies.

b. Bank (Fixed deposit)

YES 49
NO 41
TOTAL 100

Banks(Fixed Deposit)

YES
NO

There is no major difference between the number of people who prefer keeping their
money in fixed deposit and who don’t opt for it. There is however a growing concern
about the falling interest rate
BONDSin banks on fixed deposit.
& Debentures
c. Bonds & Debentures

YES 34
NO 66
TOTAL 100
YES
NO

39
It has been observed that only 34% they have invested in Bonds and Debentures AS
compared to those who have not. This may be due to less knowledge about it or the time
of re-demption.

d. Equities & Share Market

YES 45
NO 55
TOTAL 100

Equity & Share Market

YES
YES
NO
NO

By the chart we observe that the percentage of people investing in equity and share
market is not much but there is a going interest among people especially the younger
generation to invest so as to make quick bucks with the market boom.

e. PPF

YES 43
NO 57
40
 TOTAL 100

PPF

43%
YES
NO
57%

Out of the total people asked 57% said they invest in PPF and 43% said they don’t, but it
has been observed that from the people who said they invest the major chunk are people
from service sector.

f. NSC

YES 45
NO 55
TOTAL 100

NSC

45%
YES
NO
55%

Out of all the people questioned 45% said YES and 55% said NO. People who have said
that YES a major percentage are either business man or working people who want a fix
rate of return and security.

g. Post Office Savings Post Office Savings

YES 31
NO 69
TOTAL 100 31%

YES
NO
41
69%
Out of the total correspondent only 31% they invest in post office savings. This could be
due to falling interest rate and better return by other tools.

h. Real Estate

YES 42
NO 58
TOTAL 100

Real Estate

42%
YES
NO
58%

The correspondent who said YES are 42% and who said NO is 58% but this will change
as people are more comfortable in real estate and with falling interest rate people try to
find new avenue of investments.

i. Gold
Gold
YES 41
NO 59
TOTAL 100

41%
YES
NO
59% 42
Out of the total correspondent questioned 41% say they prefer to invest in gold while
59% say they don’t.

j. Others

YES 39
NO 61
TOTAL 100
OTHERS

39%
YES
NO
61%

Of all the correspondents asked only 39% said they have other options to invest other
than the conventional options.

Q4. What percentage of your income do you invest?

Below 10% 30
10%-30% 57
30%-50% 10
Above 50% 3

About 60% of people said that they invest between 10%-60% of their total income in
some or other types of financial tools. A major chunk of people belonging to this segment

43
are from IT sector who are young, large disposable income and have a little knowledge
about investment and are willing to take risk.

percentage of income invested

60

50

40

30 Series1
20

10

0
Below 10% 10%-30% 30%-50% Above 50%

Q5. Are you aware about mutual funds?

YES 88
NO 12
TOTAL 100

Aw areness about m utual funds

12%

YES
NO

88%

44
Only 12% of correspondent said they don’t know any thing about mutual fund and 88%
said they know about mutual funds but what we found that they have just a primary or
very negligible knowledge about mutual funds and not really aware of the concept called
MUTUAL FUND.

Q6. What is your perception about mutual funds?

SAFE 15%
RISKY 25%
OTHERS 60%
TOTAL 100%

Perception about mutual funds

60%

50%

40%
60%
30% Series1

20%
25%
10% 15%

0%
Safe Risky Others

The percentage of person who say that mutual fund is safe is 5%, an those who say it is
risky is 25% but a major percentage of corresponds opt as other which is about 60%.
These are people who say that mutual funds are high risk and high gain or even people
who have no opinion.

Q7. Have you ever invested in mutual fund?

YES 41
NO 59
TOTAL 100
investment in mutual funds

60
50
40
30
20
45
10
0
Yes No
Out of the total correspondents asked about 41% have said that they had invested in
mutual funds before while 59% said NO. Out of the total people who have said yes a
majority of them are young, having disposable income and willingness to take risk.

Q8. Do you know different type of mutual scheme present in the market?

YES 36
NO 64
TOTAL 100

Types of mutual funds

100%

80%

60%

40%

20%

0%
Yes No

Out of total corresponds only 36% said that they know about various mutual schemes as
this number is very small it explains that people still don’t know about various schemes in
the market. It also shows that even those who have bought mutual funds are still ignorant
about the different schemes.

Q9. How you choose a mutual fund?

BRAND NAME 35
HIGH NAV 26
HIGH RETURNS 15
ADVERTISING 12
OTHERS 12
46
 TOTAL 100

Choosing of mutual fund

40
35
30
25
20
15
10
5
0
Brand Name High NAV High Returns Advertising Others

It has been observed that brand name does matter when people are choosing a mutual
fund as 35% said brand name. The next is NAV at about 26%. These two factors play a
major role during selection of mutual funds.

47
PROJECT FINDINGS AND
RECOMMENDATIONS

48
PROJECT FINDINGS:
• There is great opportunity for Mutual Fund companies as there is a is a rise in number
of people who want to invest in share market but don’t have time and knowledge to do
so, also these people want to take less risk .

• With booming market and falling interest rate of bank deposits, people see mutual
funds as an attractive financial tool which provide a high return rate at lower risk as
compared to equity market.

• Young people these days are particularly more interested in mutual funds because they
see mutual fund as safe bet. Also these people have large disposable incomes and risk
taking capability too.

• The bad part is people are still ignorant about mutual funds and different schemes about
mutual funds, hence it is very necessary to educate them about mutual funds

• Advertising can also play a major part as it has been seen that people buy mutual fund
looking at the brand name.

RECOMMENDATIONS:
• India is passing through a tremendous growth phase with an average growth rate of 7-
8% per annum. With this growth phase there is growth in each and every sector, hence
there is rush to by shares and equities. It is also a very good time for mutual fund
companies but it is advisable for them and their brokers that they don’t just sell mutual
funds but sell the right kind of scheme which is comfortable to a person nature of
taking risk and need,

• There is a general ignorance and questions about, what are mutual funds? What are
different schemes of mutual funds? How to invest in a mutual? And many more. This
thing should be handled by mutual fund companies and their brokers to provide
knowledge to their clients.

• It has been seen that there is a major increase in the percentage of young investors who
have large amount of disposable income with them and want to invest, these type of
prospective clients should be tapped at an early stage.
49
• Small towns, villages are still untapped and can also acts as an business area of very
huge potential.

• Now even co-operative society can invest up to 10% of their capital in mutual funds
which open the door to new and very important client base.

BIBLIOGRAPHY

50
WEB:

• www.karvy.com
• www.sundermutual.com
• www.njindiainvest.com
• www.moneycontrol.com
• www.amfiindia.com
• www.indiamutual.com

BOOKS
• MUTUAL FUND
PRODUCT AND SERVICES---- TAXMAN
• AMFI COURSE BOOK
• INDIAN MUTUAL FUNDS HANDBOOK--
SUNDER SANKARAN

51
 SAMPLE CASE STUDY

Name of Client: Sitender Singh

Contact No. : 9325644390

Address : NDA Road Pune

Product Presentation
Done On : Mutual Funds

No.Of Appointment : 1
Done With Client

Date of appointment : 23/06/2008

Summery Of : Presentation was basically on the

Presentation SIP

Closing Details

Product Closed : SBNPPSF

Amount : 6000 (500*12)

52
 SAMPLE CASE STUDY

Name of Client: Siddharth ( sitender) Singh

Contact No. : 9922196963

Address : NDA Road Pune

Product Presentation
Done On : Mutual Funds

No.Of Appointment : 1
Done With Client

Date of appointment : 25/06/2008

Summery Of : Presentation was basically on the

Presentation SIP

Closing Details

Product Closed : RRSF

Amount : 1200 (100*12)

53
 SAMPLE CASE STUDY

Name of Client: Siddharth ( sitender) Singh

Contact No. : 9922196963

Address : NDA Road Pune

Product Presentation
Done On : Mutual Funds

No.Of Appointment : 1
Done With Client

Date of appointment : 25/06/2008

Summery Of : Presentation was basically on the

Presentation SIP

Closing Details

Product Closed : REF

Amount : 1200 (100*12)

54
 SAMPLE CASE STUDY

Name of Client: Siddharth (sitender) Singh

Contact No. : 9922196963

Address : NDA Road Pune

Product Presentation
Done On : Mutual Funds

No.Of Appointment : 1
Done With Client

Date of appointment : 25/06/2008

Summery Of : Presentation was basically on the

Presentation SIP

Closing Details

Product Closed : RNRF

Amount : 1200 (100*12)

55
 SAMPLE CASE STUDY

Name of Client: Siddherth (Sitender) Singh

Contact No. : 9922196963

Address : NDA Road Pune

Product Presentation
Done On : Mutual Funds

No.Of Appointment : 1
Done With Client

Date of appointment : 25/06/2008

Summery Of : Presentation was basically on the

Presentation SIP

Closing Details

Product Closed : REOF

Amount : 1200 (100*12)

56
 SAMPLE CASE STUDY

Name of Client: Siddherth (Sitender) Singh

Contact No. : 9922196963

Address : NDA Road Pune

Product Presentation
Done On : Mutual Funds

No.Of Appointment : 1
Done With Client

Date of appointment : 25/06/2008

Summery Of : Presentation was basically on the

Presentation SIP

Closing Details

Product Closed : REAF

Amount : 1200 (1 00*12)

57
 SAMPLE CASE STUDY

Name of Client: Mahesh Joshi

Contact No. : 9890192440

Address : Gokhale Nager Pune

Product Presentation
Done On : Mutual Funds

No.Of Appointment : 1
Done With Client

Date of appointment : 02/07/2008

Summery Of : Presentation was basically on the

Presentation SIP

Closing Details

Product Closed : RRSF

Amount : 1200 (100*12)

58
 SAMPLE CASE STUDY

Name of Client: Saranga Joshi

Contact No. : 9403357504

Address : Gokhale Nagar Pune

Product Presentation
Done On : Mutual Funds

No.Of Appointment : 1
Done With Client

Date of appointment : 02/07/2008

Summery Of : Presentation was basically on the

Presentation SIP

Closing Details

Product Closed : RNRF

Amount : 1200 (100*12)

59
 SAMPLE CASE STUDY

Name of Client: Mukash Panday

Contact No. : 9860930122

Address : Atul Nagar Pune

Product Presentation
Done On : Mutual Funds

No. Of Appointment : 1
Done With Client

Date of appointment : 04/07/2008

Summery Of : Presentation was basically on the

Presentation SIP

Closing Details

Product Closed : RRSF

Amount : 3000 (250*12)

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 SAMPLE CASE STUDY

Name of Client: Mukesh Panday

Contact No. : 9860930122

Address : Atul Nagar

Product Presentation
Done On : Mutual Funds

No.Of Appointment : 1
Done With Client

Date of appointment : 04/07/2008

Summery Of : Presentation was basically on the

Presentation SIP

Closing Details

Product Closed : RNRF

Amount : 3000 (250*12)

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Questionnaire

1. Are you a regular investor?

a. Yes b. No

2. Do you invest using –

a. Scientific Tools b. By Intuition

3. What are your preferred investment priorities?

Name of Investment
Insurance
Bank
Bonds & Debentures
Equities & Share Market
PPF (Public Provident Fund)
NSC (National Saving Schemes)
Post Office Saving Schemes
Real Estate
Gold
Others

4. What percentage of your income do you invest?

a. Below 10%
b. 10% - 30%
c. 30% - 50%
d. Above 50%

5. Are you aware about Mutual Funds?

a. Yes b. No

6. What is your perception about Mutual Funds?

a. Safe

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 b. Risky
c. Others

7. Have you invested in some Mutual Funds?

a. Yes b. No

8. Do you know different type of Mutual Fund scheme present in the market?
a. Yes b. No

9. How do you select and choose Mutual Funds?

a. Brand Name b. High NAV
c. High Dividends d. Advertisement
e. Others

Demographics

1. NAME: _____________________________________________

2. AGE: SEX: M / F

3. MARTIAL STATUS:

4. PROFESSION:

5. ANNUAL INCOME:
a. Less than Rs. 1, 00,000/-
b. 1, 00,000 - 1, 50,000/-
c. 1, 50,000 - 2, 50,000/-
d. 2, 50,000 - 5, 00,000/-
e. Above 5,00,000/-

6. Contact Number:

7. Email ID : ___________________________________________

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*************************Thank you****************************

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