Reshma Sharma

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.

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

16.

6.

ANALYSIS OF PROJECT • DATA COLLECTION • DATA INTERPRETATION

34.

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.

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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, cuttingedge 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.

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Mile Stones:

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

2001

1997

$

Custodial (DP ) services launched

Distribution of investment products (mutual funds, IPOs, Bonds, etc) Commenced NSE operations

1990

1985

1982

1990-95

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) # WDM membership obtained Branches – 495+ Commenced commodity and insurance broking operations

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

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 @ - by number of applications mobilised * - High Networth Individual segment ** - Hyderabad Stock Exchange

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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

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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.

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(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

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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 at today’s price

Year’s to achieve your goal

Investment horizon

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 course

Rs. 0.5 Lakhs

6 months

Short term

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.

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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 IndoChina 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:

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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

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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

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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 E T U R N S

Equity Funds Balanced Funds Income Funds

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.

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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 NO TOTAL

89 11 100

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 usinga. Scientific Tools

b. By Intuition

Scientific Tools By Intuition Total

47 53 100

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 NO TOTAL

77 23 100 LIC

23%

YES NO

77%

38

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 NO TOTAL

49 41 100 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 in banks on fixed deposit. BONDS & Debentures c. Bonds & Debentures YES NO TOTAL

34 66 100 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 NO TOTAL

45 55 100 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 NO

43 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 NO TOTAL

45 55 100 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 YES NO TOTAL

Post Office Savings

31 69 100

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 NO TOTAL

42 58 100 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 YES NO TOTAL

41 59 100

Gold

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 NO TOTAL

39 61 100

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% 10%-30% 30%-50% Above 50%

30 57 10 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 NO TOTAL

88 12 100 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 RISKY OTHERS TOTAL

15% 25% 60% 100% Perception about mutual funds

60% 50% 40% 60%

30% 20%

25%

15%

10%

Series1

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 NO TOTAL

41 59 100 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 NO TOTAL

36 64 100 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 HIGH NAV HIGH RETURNS ADVERTISING OTHERS

35 26 15 12 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 78% 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 : Product Presentation Done On

NDA Road Pune : Mutual Funds

No.Of Appointment Done With Client

: 1

Date of appointment

:

Summery Of Presentation

: Presentation was basically on the SIP

23/06/2008

Closing Details Product Closed

:

Amount

:

SBNPPSF 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 Done With Client

: 1

Date of appointment

:

Summery Of Presentation

: Presentation was basically on the SIP

25/06/2008

Closing Details Product Closed

:

Amount

:

RRSF 1200 (100*12)

53

SAMPLE CASE STUDY

Name of Client:

Siddharth ( sitender) Singh

Contact No. :

9922196963

Address : Product Presentation Done On

NDA Road Pune : Mutual Funds

No.Of Appointment Done With Client

: 1

Date of appointment

:

Summery Of Presentation

: Presentation was basically on the SIP

25/06/2008

Closing Details Product Closed

:

Amount

:

REF 1200 (100*12) 54

SAMPLE CASE STUDY Name of Client:

Siddharth (sitender) Singh

Contact No. :

9922196963

Address : Product Presentation Done On

NDA Road Pune : Mutual Funds

No.Of Appointment Done With Client

: 1

Date of appointment

:

Summery Of Presentation

: Presentation was basically on the SIP

25/06/2008

Closing Details Product Closed

:

Amount

:

RNRF 1200 (100*12)

55

SAMPLE CASE STUDY Name of Client:

Siddherth (Sitender) Singh

Contact No. :

9922196963

Address : Product Presentation Done On

NDA Road Pune : Mutual Funds

No.Of Appointment Done With Client

: 1

Date of appointment

:

Summery Of Presentation

: Presentation was basically on the SIP

25/06/2008

Closing Details Product Closed

:

Amount

:

REOF 1200 (100*12)

56

SAMPLE CASE STUDY Name of Client:

Siddherth (Sitender) Singh

Contact No. :

9922196963

Address : Product Presentation Done On

NDA Road Pune : Mutual Funds

No.Of Appointment Done With Client

: 1

Date of appointment

:

Summery Of Presentation

: Presentation was basically on the SIP

25/06/2008

Closing Details Product Closed

:

Amount

:

REAF 1200 (1 00*12)

57

SAMPLE CASE STUDY Name of Client:

Mahesh Joshi

Contact No. :

9890192440

Address : Product Presentation Done On

Gokhale Nager Pune : Mutual Funds

No.Of Appointment Done With Client

: 1

Date of appointment

:

Summery Of Presentation

: Presentation was basically on the SIP

02/07/2008

Closing Details Product Closed

:

Amount

:

RRSF 1200 (100*12)

58

SAMPLE CASE STUDY Name of Client:

Saranga Joshi

Contact No. :

9403357504

Address : Product Presentation Done On

Gokhale Nagar Pune : Mutual Funds

No.Of Appointment Done With Client

: 1

Date of appointment

:

Summery Of Presentation

: Presentation was basically on the SIP

02/07/2008

Closing Details Product Closed

:

Amount

:

RNRF 1200 (100*12)

59

SAMPLE CASE STUDY Name of Client:

Mukash Panday

Contact No. :

9860930122

Address : Product Presentation Done On

Atul Nagar Pune : Mutual Funds

No. Of Appointment Done With Client

: 1

Date of appointment

:

Summery Of Presentation

: Presentation was basically on the SIP

04/07/2008

Closing Details Product Closed

:

RRSF

Amount

:

3000 (250*12)

60

SAMPLE CASE STUDY Name of Client:

Mukesh Panday

Contact No. :

9860930122

Address : Product Presentation Done On

Atul Nagar : Mutual Funds

No.Of Appointment Done With Client

: 1

Date of appointment

:

Summery Of Presentation

: Presentation was basically on the SIP

04/07/2008

Closing Details Product Closed

:

Amount

:

RNRF 3000 (250*12)

61

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 62

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 :

___________________________________________

63

*************************Thank

you****************************

64