A SUMMER TRAINING PROJECT REPORT

ON

COMPARATIVE ANALYSIS OF AXIS MUTUAL FUND WITH HDFC MUTUAL FUND,BIRLA SUN LIFE MUTUAL FUND AND INVESTORS PERCEPTION TOWARDS INVESTMENT IN AXIS MUTUAL FUND Submitted in partial fulfilment for MASTER OF BUSINESS ADMIMISTRATION Programme of MM INSTITUTE OF MANAGEMENT MMU-MULLANA (AMBALA) *Batch:-2009-2011*

Submitted by SHANKY ROLL NO: 12097138 MBA BATCH: 2009-2011

Under Guidance Mr. VIJAY KUMAR BRANCH MANAGER AXIS BANK LTD. (KAITHAL)

MM INSTITUTE OF MANAGEMENT MAHARISHI MARKANDESHWAR UNIVERSITY MULLANA-(AMBALA)

PREFACE
MBA is a stepping-stone to the management carrier and to develop good manager. It is necessary that the theoretical must be supplemented with exposure to the real environment. Theoretical knowledge just provides the base and its not sufficient to produce a good manager thats why practical knowledge is needed. Therefore the research product is an essential requirement for the student of MBA. This research project not only helps the student to utilize his skills properly learn field realities but also provides a chance to the organization to find out talent among the budding managers in the very beginning. Investing money where the risk is less has always been risky to decide. The first factor, which an investor would like to see before investing, is risk factor. Diversification of risk gave birth to the phenomenon called Mutual Fund. The Mutual Fund Industry is in the growing stage in India, which is evident from the flood of mutual funds offered by the Banks, Financial Institutes & Private Financial Companies. In accordance with the requirement of MBA course I have summer training Research project on the topic COMPARATIVE ANALYSIS OF AXIS MUTUAL FUND WITH HDFC MUTUAL FUND, BIRLA SUN LIFE MUTUAL FUND AND INVESTORS PERCEPTION TOWARDS

INVESTMENT IN AXIS MUTUAL FUND. While preparing this project report, I got an opportunity to learn many valuable things.

CERTIFICATE FROM GUIDE

This is to certify that the project topic COMPARATIVE ANALYSIS OF AXIS MUTUAL FUND WITH HDFC MUTUAL FUND,BIRLA SUN LIFE MUTUAL FUND AND INVESTORS PERCEPTION TOWARDS INVESTMENT IN AXIS MUTUAL FUND is prepared and completed successfully by Mr. SHANKY (Roll No. 12097138) under my guidance. The project has been completed to my satisfaction and I wish him all the best in his future endeavour.

Mr. VIJAY KUMAR (Project Guide) BRANCH MANAGER, AXIS BANK LTD. KAITHAL (HARYANA)

ACKNOWLEDGEMENT
EXPRESSION OF FEELINGS BY WORDS MAKES THEM
LESS SIGNIFICANT WHEN IT COMES TO MAKE STATEMENT OF GRATITUDE
Summer training is one of the most vital and active part of the curriculum of management students. I take this opportunity to express my gratitude to all the people who have guided and helped me directly or indirectly in the course of completion of my project. I did the work as a management trainee at Axis Bank Ltd. Ambala Road, Kaithal for a period of six weeks starting from 14th June, 2010. I feel immense pleasure to express a deep sense of gratitude to my Director of MMIM, Dr. AMIT MITTAL who has given me an opportunity to do my internship in Axis Bank Ltd. at Kaithal Branch & I would also thankful to my Faculty Guide PROF. ESHA CHAWLA. His valuable suggestions and helping hands has helped me to complete my project successfully. I would like to extend my heartfelt gratitude to Mr. VIJAY KUMAR Branch Manager of Axis Bank Ltd. (Kaithal), for his proper guidance throughout the project. Without his support and cooperation I would have failed in my endeavours and targets in the summer training. I am indebted to the Bank Employees who supported me in handling my queries. Last, I feel self-short of words to thanks My Parents and Friends who had directly or indirectly instrumental in the completion of the project. I am indebted to all respondents for their time passion during the long conversations.

(SHANKY)

DECLARATION
This is to certify that the project topic COMPARATIVE ANALYSIS OF AXIS MUTUAL FUND WITH HDFC MUTUAL FUND, BIRLA SUN LIFE MUTUAL FUND AND INVESTORS PERCEPTION TOWARDS INVESTMENT IN AXIS MUTUAL FUND is prepared and submitted by me to MM Institute Of Management (MMIM) MMU-MULLANA in partial fulfilment for the award of the Master Degree in Business Administration and this report has not been submitted elsewhere.

Date:

SHANKY ROLL NO: 12097138 MBA, BATCH: 2009-2011 MMIM, MMU- MULLANA.

EXCUTIVE SUMMARY
In few years Mutual Fund has emerged as a tool for ensuring ones financial well being. Mutual Funds have not only contributed to the India growth story but have also helped families tap into the success of Indian Industry. As information and awareness is rising more and more people are enjoying the benefits of investing in mutual funds. This Project gave me a great learning experience and at the same time it gave me enough scope to implement my analytical ability. This Report will help to know the past performance of open ended equity growth mutual funds scheme. The analytical tools such as Standard Deviation, Alpha, Beta, Sharpes Index, Treynors Index and Jensen Index has been show the risk and return of the portfolio & correlation between the fund return & market return has been used to show the investment pattern in mutual fund in industry. This report also tells us about the Investors Perception Towards Investment In Axis Mutual Fund means that investor are How much risk willing to take, How much return they expect from their investment, Which type of Scheme they prefer, Which Investment Strategy they follow (Equity fund, Debt fund, Balanced fund) etc. This Project as a whole can be divided into two parts. The 1st part gives an insight about Mutual Fund and its various knowledge-full aspects, The Company Profile, The Industry Profile. The 2nd part of the Project consist the Research Methodology, Comparative Analysis of Axis, HDFC and Birla Sun Life Mutual Funds and Investor perception towards Axis Mutual Fund, Findings, Conclusion, Suggestions & Recommendation. For the collection of Primary data I made a questionnaire and surveyed of 100 people. I also taken interview of many People those who were coming at the Axis Bank Ltd. Kaithal Branch where I done my Project. This Project covers the topic COMPARATIVE ANALYSIS OF AXIS MUTUAL FUND WITH HDFC MUTUAL FUND, BIRLA SUN LIFE MUTUAL FUND AND INVESTORS PERCEPTION TOWARDS INVESTMENT IN AXIS MUTUAL FUND. The data collected has been well organized and presented. I hope the research findings and conclusion will be of useful.

CONTENTS
Chapter Name & No. PART-1
1. INTRODUCTION..............................................................01-02 2. COMPANY PROFILE......................................................03-17 3. INDUSTRY PROFILE......................................................18-39

Page No.

PART-2
4. LITERATURE REVIEW..................................................40-42 5. RESEARCH METHODOLOGY......................................43-96 6. FINDINGS..........................................................................97-99 7. CONCLUSION......................................................................100 8. SUGGESTIONS & RECOMMENDATION.......................101 BIBLIOGRAPHY APPENDIX/ANNEXURE

LIST OF TABELS

Table Name & No.

Page No.

1. Board of directors of Axis Bank..........................................................................13 2. Core management team of Axis Bank.................................................................15 3. Shareholding pattern of Axis Bank.....................................................................16 4. Key performance indicators of Axis Bank.........................................................16 5. Financial performance of Axis Bank..................................................................17 6. Fund profile of Axis Equity Growth Fund.........................................................52 7. Returns of Axis Equity Growth Fund.................................................................52 8. Sector allocation of Axis Equity Growth Fund.................................................52 9. Asset allocation of Axis Equity Growth Fund....................................................52 10. Portfolio holdings of Axis Equity Growth Fund................................................53 11. History of Axis Equity Growth Fund..................................................................53 12. Fund profile of HDFC Equity Growth Fund.....................................................55 13. Returns of HDFC Equity Growth Fund.............................................................55 14. Fund sector allocation of HDFC Equity Growth Fund.....................................55 15. Asset allocation of HDFC Equity Growth Fund................................................55 16. Portfolio holdings of HDFC Equity Growth Fund............................................56 17. History of HDFC Equity Growth Fund..............................................................56 18. Fund profile of BSL 95-Growth Fund................................................................59 19. Returns of BSL 95-Growth Fund........................................................................59 20. Sector allocation of BSL 95-Growth Fund.........................................................59 21. Asset allocation of BSL 95-Growth Fund...........................................................59 22. Portfolio holdings of BSL 95- Growth Fund......................................................60 23. History of BSL 95-Growth Fund.........................................................................60

24. Performance evaluation of Axis Equity Growth Fund......................................66 25. Performance evaluation of HDFC Equity Growth Fund..................................68 26. Performance evaluation of BSL 95-Growth Fund.............................................70 27. Treynors index f Axis, HDFC, BSL Mutual Funds..........................................72 28. Sharpes index of Axis, HDFC, BSL Mutual Funds..........................................73 29. Jensens index of Axis, HDFC, BSL Mutual Funds..........................................74 30. Trend analysis of Axis Mutual Fund NAV.........................................................76 31. Expected and Actual NAV of Axis Mutual Fund..............................................77 32. Trend analysis of HDFC Mutual Fund NAV.....................................................78 33. Expected and Actual NAV of HDFC Mutual Fund...........................................79 34. Trend analysis of BSL Mutual Fund NAV.........................................................80 35. Expected and Actual NAV of BSL Mutual Fund.............................................81 36. No. of investors at different Age Group............................................................82 37. No. of investors having different Occupation...................................................83 38. No. of investors at different Income Level........................................................84 39. Investors awareness towards Axis MF..............................................................85 40. No. of investors from where they know about Axis MF..................................85 41. Investment decision of investors.........................................................................86 42. Investors who not invested in Axis MF..............................................................86 43. Investment objective of Axis MF investor..........................................................87 44. Avg. investment period of Axis MF investor......................................................88 45. Risk prefer by Axis MF investors......................................................................89 46. Return expected by various investors................................................................90 47. Scheme (By Structure) prefer by investors.......................................................91 48. Scheme (By Investment) prefer by Investors....................................................92 49. Table of investors influenced behaviour............................................................93 50. From where investors purchase Axis MF........................................................94 51. No. of investor who liked the different feature of Axis MF..............................95 52. Satisfaction level of Axis MF investors..............................................................96

LIST OF CHARTS

Chart Name & No.

Page No.

1. Treynor's Index Analysis.....................................................................................72 2. Sharpe's Index Analysis.......................................................................................73 3. Jensen's Index Analysis........................................................................................74 4. Trend of AXIS Mutual Fund NAV.....................................................................77 5. Trend of HDFC Mutual Fund NAV....................................................................79 6. Trend of BSL Mutual Fund NAV......................................................................81 7. Analysis according to Age....................................................................................82 8. Analysis according to Occupation.......................................................................83 9. Analysis according to Income..............................................................................84 10. Analysis awareness of Axis MF..........................................................................85 11. Analysis source of awareness...............................................................................85 12. Analysis investment decision of investors.........................................................86 13. Analysis who not invested in Axis MF................................................................86 14. Analysis investment objective of Axis MF..........................................................87 15. Analysis of avg. investment period of Axis MF Investor...................................88 16. Analysis of risk prefer by Axis MF Investor......................................................89 17. Analysis of expected return of Axis MF Investor..............................................90

18. Analysis of scheme (By Structure) prefer by Axis MF Investor.......................91 19. Analysis of scheme (By Investment) prefer by Axis MF Investor....................92 20. Analysis of investor influenced behaviour of Axis MF......................................93 21. Analysis of purchase decision of Axis MF investor...........................................94 22. Analysis of Axis MF features...............................................................................95 23. Analysis of satisfaction level of Axis MF investor..............................................96

PART-1 Chapter-1 INTORDUCTION

INTRODUCTION
Mutual fund is a buzz in the market these days. The mutual fund industry is burgeoning, it is completely untapped market. Only 5% of total potential of this industry has been grabbed. Hence this industry has a lot of opportunities in it. Thats why it is so much interactive. As Indian economy is growing at the rate of 8% per annum, we can see its effect in all areas. The Indian stock market and companies have become lucrative for foreign investors. More and more fund is pouring in our country. This is increasing liquidity in the market and hence increasing the money in the hands of people and thus investment. As the future prospects for Indian companies are bright, they have lots of opportunities to expand their business worldwide, the investment in Indian companies. A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. These could range from shares to debentures to money market instruments. The income earned through these investments and the capital appreciations realized by the scheme are shared by its unit holders in proportion to the number of units owned by them (pro-rata). Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed portfolio at a relatively low cost. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy. A mutual fund is the ideal investment vehicle for todays complex and modern financial scenario. Markets for equity shares, bonds and other fixed income instruments, real estate, derivatives and other assets have become mature and information driven. Price changes in these assets are driven by global events occurring in faraway places. Atypical individual is unlikely to have the knowledge, skills, inclination and time to keep track of events, understand their implications and act speedily. An individual also finds it difficult to keep track of ownership of his assets, investments, brokerage dues and bank transactions etc. A mutual fund is the answer to all these situations. It appoints professionally qualified and experienced staff that manages each of these functions on a full time basis. The large pool of money collected in the fund allows it to hire such staff at a very low cost to each investor. In effect, the mutual fund vehicle exploits economies of scale in all three areas research, investments and transaction processing. While the concept of individuals coming together to invest money collectively is not new, the mutual fund in its present

form is a 20th century phenomenon. In fact, mutual funds gained popularity only after the Second World War. Globally, there are thousands of firms offering tens of thousands of mutual funds with different investment objectives. Today, mutual funds collectively manage almost as much as or more money as compared to banks.

Chapter-2 COMPANY PROFILE

COMPANY PROFILE
BANKING IN INDIA:
Banking in India originated in the first decade of 18th century. The General Bank of India, which started in 1786, and Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the "The Bank of Bengal" in Calcutta in June 1806. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras. The presidency banks were established under charters from the British East India Company. They merged in 1925 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. For many years the Presidency banks acted as quasi-central banks, as did their successors. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers.

EARLY HISTORY:
The first fully Indian owned bank was the Allahabad Bank, established in 1865. However, at the end of late-18th century, there were hardly any banks in India in the modern sense of the term. The American Civil War stopped the supply of cotton to Lancashire from the Confederate States. Promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. The Bank of Bengal, which later became the State Bank of India. Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities. The presidency banks dominated banking in India. There were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally undercapitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like

some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments." By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. Punjab National Bank is the first Swadeshi Bank founded by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi movement in particular inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.

NATIONALIZED BANKS IN INDIA:

Banking System in India is dominated by nationalized banks. The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective behind nationalization was to spread banking infrastructure in rural areas and make available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969. Before 1969, State Bank of India (SBI) was the only public sector bank in India. SBI was nationalized in 1955 under the SBI Act of 1955. The second phase of nationalization of Indian banks took place in the year 1980. Seven more banks were nationalized with deposits over 200 crores. List of Public Sector Banks in India is as follows:

Allahabad Bank Bank of Baroda Bank of Maharashtra Central Bank of India Dena Bank Indian Overseas Bank Punjab and Sind Bank State Bank of India (SBI)

Andhra Bank Bank of India Canara Bank Corporation Bank Indian Bank Oriental Bank of Commerce Punjab National Bank

PRIVATE BANKS IN INDIA:

All the banks in India were earlier private banks. They were founded in the preindependence era to cater to the banking needs of the people. But after nationalization of banks in 1969 public sector banks came to occupy dominant role in the banking structure. Private sector banking in India received a fillip in 1994 when Reserve Bank of India encouraged setting up of private banks as part of its policy of liberalization of the Indian Banking Industry. Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. Private Banks have played a major role in the development of Indian banking industry. They have made banking more efficient and customer friendly. In the process they have jolted public sector banks out of complacency and forced them to become more competitive. Major Private Banks in India is:

Bank of Rajasthan Axis Bank Centurion Bank of Punjab Federal Bank ICICI Bank Jammu & Kashmir Bank Karur Vysya Bank

Bharat Overseas Bank Catholic Syrian Bank Dhanalakshmi Bank HDFC Bank ING Vysya Bank Karnataka Bank Kotak Mahindra Bank

AXIS BANK
Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank today is capitalized to the extent of Rs. 403.63 crores with the public holding (other than promoters and GDRs) at 53.72%. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a very wide network of more than 1000 branches. The Bank has a network of over 4293 ATMs providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence. Welldiversified asset mix, low proportion of non-performing assets, robust non-operating income, and high net interest margins are likely to be the key drivers for growth.

AXIS PROFILE:
Axis Bank is one of the fastest growing banks in the country and has extremely competitive and profitable banking franchise evidence by: Comprehensive portfolio of banking services including Retail Banking, Corporate Banking, Treasury, Business Banking, and International Banking.

RETAIL BANKING SERVICES:

The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking and Net Banking. The Axis Bank Preferred program for high net worth individuals, the Axis Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Twowheelers. It is also a leading provider of Depository Participant (DP) services for retail

customers, providing customers the facility to hold their investments in electronic form. The Bank aims to increase its market-share in India's expanding financial services industry through continued emphasis on building a strong retail franchise. The Bank remains committed to developing long-term strong relationships with its customers and ensuring that they have access to high-quality service as well as the full suite of financial solutions to help achieve their financial objectives. Growth strategies have focused on building profitable relationships across various customer segments. In order to achieve the objective of becoming more customer-centric, rather than product-centric, the Bank has restructured Retail Banking into two groups namely Mass and Mass Affluent, and Affluent segments. The Mass and Mass Affluent Segment owns, as the name indicates, mass-market customers, while the Affluent Segment owns clientele defined as affluent, comprising customers in the wealth and private banking space.

CORPORATE BANKING SERVICES:

The Axis Bank Corporate Banking franchise aims to provide a wide array of products across several customer segments, including credit, trade finance, structured finance and syndication services for debt and equity. Since each corporate engagement also offers opportunities on the retail side of the business, products anchored in the Retail SBUs also form a part of the corporate marketing effort. New customer acquisition and relationshipdeepening constitute the two-pronged strategy for growth. In order to leverage growth opportunities offered by India's infrastructure sector, a separate infrastructure business group has been established within the corporate banking group. The Axis Bank target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporates and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery/service levels and strong customer orientation, the Axis Bank has made significant inroads into a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognised as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.

TREASURY:
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the financial markets in India, corporates need more sophisticated risk

management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio. The Axis Bank has an integrated Treasury, covering both domestic and global markets, which manages the Bank's funds across geographies. During the year, the Bank posted a vigorous growth in both customer-based and proprietary Treasury business. In foreign exchange business, the Bank has increased its presence in the inter-bank markets and despite the competitive environment, grew the customer forex (merchant) business during 2009-10 by 36% year-on-year. The Bank has played a key role in the sovereign debt markets during the year and booked trading gains from the government securities portfolio of Rs. 302.63 crores against Rs. 217.35 crores last year. During the year, the Bank became a member of the NSE on the Interest Rate Futures segment and used the Interest Rate Swap market for proprietary trading as well as for hedging its balance sheet risks. The Bank enlarged its business with financial institutions during the year raising foreign currency resources to support customer trade business across the borders and increasing trade finance activity. The Bank also participated actively in risk-participation business overseas with several reputed international banks. The Bank has a stringent process of setting up interbank exposure limits and a strong monitoring process to react quickly to changing markets and economic conditions.

BUSINESS BANKING:
Business Banking initiatives have consistently focused on procuring low-cost funds by offering a range of current account products and cash management solutions across all business segments covering corporate, institutions, central and state government ministries and undertakings, as well as small and retail business customers. The crossselling of transactional banking products have also succeeded in enlarging the customer base and growing current account balances. Thus, sourcing of current accounts is one of the key enablers for the growth of the balance sheet. As on 31 March 2010, current account balances for the Bank stood at Rs. 32,167.74 crores, against Rs. 24,821.61 crores on 31 March 2009, rising 29.60% over the year. On a daily average basis, current account balances grew from Rs. 14,658.35 crores on 31 March 2009 to Rs. 18,321.75 crores on 31 March 2010, thus increasing 24.99% over the year.

INTERNATIONAL BANKING:
The International Banking strategy of the Bank revolves around leveraging its relations with corporates in India while providing banking solutions at overseas centres. The product offerings at overseas centres cover a wide spectrum of businesses involving retail banking, wealth management, corporate banking and treasury solutions. The Bank's

international presence spans the major financial hubs in Asia with branches at Singapore, Hong Kong and DIFC, Dubai, and representative offices at Shanghai and Dubai, besides strategic alliances with banks and exchange houses in the Gulf Co-operation Council (GCC) countries. While branches at Singapore, Hong Kong and DIFC-Dubai enable the Bank to partner with Indian corporate doing business globally, the Dubai Representative Office and the arrangement with GCC based banks and exchange houses provide access to the NRI population. The Shanghai Representative Office apart from providing presence in the key market of China fulfils the regulatory requirement of establishing a branch in course of time to enhance the ability of the Bank to tap business opportunities emanating from that region.

AXIS BANK PRODUCT BOUQUET :

Current Accounts Saving Accounts Easy access through various channels Term Deposits Locker Facilities Financial Advisory Services Online Trading Wealth Advisory Services Depository Services Priority Banking Service Salary Account Mohur Pure Gold Bars Retail Loans Nri Services Travel Currency Card Remittance Card Resident Foreign Currency (RFC) Account Trust/Ngo Saving Account Cash Management Services De-mate Account Gift Card Credit Card Debit Card etc.

MISSION, VISION AND CORE VALUES OF AXIS BANK:

MISSION :
Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. Continuous technology up gradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices.

VISION:
To be the preferred financial solutions provider excelling in customer delivery through insight, empowered employees and smart use of technology.

CORE VALUES:
o o o Customer Satisfaction through: Providing quality service effectively and efficiently. "Smile, it enhances your face value" is a service quality stressed on. Periodic Customer Service Audits. Maximizations of Stakeholder value. Success through Teamwork, Integrity and People.

SWOT ANALYSIS OF AXIS BANK: STRENGTHS:

Brand Name Support of various promoters. High level of services. Knowledge of Indian market

WEAKNESS: Not having good image. Market capitalization is very low. Not been fully able to position it-self correctly.

OPPORTUNITIES: Growing Indian banking sectors. People are becoming more service oriented. In the global market. Dissatisfied Customers.

THREATS: Advent of MNC banks Foreign banks Govt. banks Future market trends.

Business and Marketing Strategy Of Axis Bank:

Competitive Strategy: For the private sector banks: Differentiation on the basis of area coverage and restricted Reach, Level of service is the same, Axis got advantage because of Product Innovation. For the government sector banks: High level of service quality and through product innovation, AXIS not anywhere near but has created a different set of segment people who believe in the higher set of services. For the international banks: Differentiated itself on the base of the reach and coverage to the people, Service level is somewhat same in the future otherwise these banks may create a problem.

Segmentation Strategy:
Demographics variables: Location (Metros & divisional cities), Occupation (Business persons, Salaried class-both Govt. and private, Working woman),Age (Senior citizens, Minor). Psychographic variables: Lifestyle-The people who believes in modern banking with higher set of services i.e. Internet banking (i-connect, mobile refill, travel currency card etc.).

Targeting Strategy:
Target market: Corporate banking market: This market target the industries and fulfil their financial needs. To get 125 Crore Corporate investments. Capital market: This segment is targeted on the long term needs of the individual as well as of industries. To get the 175 Crore Capital investments Retail banking market: This segment is for the retail investor and provide them short term financial credit for their personal, household needs.To get the 200 Crore retail investment.

Positioning Strategy: Axis bank has positioned itself as a bank which gives higher standard of services through product innovation for the diverse need of individual & corporate clients. So they want to highlight following points in their positioning statement: Customer centric, Service oriented, Product innovation

BOARD OF DIRECTORS:
The Bank has 13 members on the Board Mrs. Shikha Sharma is the CEO and Managing Director of the Bank.

The members of the Board are: Adarsh Adarsh Kishore Chairman Shikha Sharma M. M. Agrawal N. C. Singhal J. R. Varma R. H. Patil Managing Director & CEO Deputy Managing Director Director Director Director

Rama Bijapurkar Director R. B. L. Vaish M. V. Subbiah K. N. Prithviraj Director Director Director

V. R. Kaundinya Director S. B. S.B. Mathur P. J. Oza Director Company Secretary

Table 1: Board of directors of Axis Bank

THE CORE MANAGEMENT TEAM:

S. K. Chakrabarti Executive Director (Retail Banking, SME and Agri.) Executive Director (Corporate Banking) Executive Director and CFO Executive Director President & Chief Compliance Officer President - Large Corporates & International Banking President - Wholesale Banking Operations President - Business Banking President - IT and Retail Banking Operations President & Chief Audit Executive President - Law President - Retail Banking (Assets) President & Chief Risk Officer President - Advances President - Retail Banking (Liabilities) President - Finance & Accounts and Investor Relations President - Mid Corporates President - Infrastructure Business President - North Zone

V. Srinivasan

Somnath Sengupta Snehomoy Bhattacharya S. S. Bajaj

P. Mukherjee

Vinod George

M. V. Subramanian Rajagopal Srivatsa

S. K. Supekar B. Gopalakrishnan Manju Srivatsa Bapi Munshi C. Babu Joseph Sonu Bhasin

Sanjeev K. Gupta

V. K. Bajaj Sidharth Rath R. K. Bammi

S. K. Nandi S. K. Mitra C. P. Rangarajan

President - West Zone President - East Zone President - South Zone Table 2: Core management team of Axis Bank

Promoters:
Axis Bank Ltd. has been promoted by the largest and the best Financial Institution of the country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5 crore each.

SUUTI Shareholding :
Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February 2003. In accordance with the Act, the Undertaking specified as UTI I has been transferred and vested in the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), who manages assured return schemes along with 6.75% US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores. The Government of India has currently appointed Shri K. N. Prithviraj as the Administrator of the Specified undertaking of UTI, to look after and administer the schemes under UTI - I, where Government has continuing obligations and commitments to the investors, which it will uphold. The paid up capital of the Bank as on 31 March 2010 rose to Rs. 405.17 crores from Rs. 359.01 crores as on 31 March 2009. The shareholding pattern of the Bank as of 31 March 2010 is stated below:

Sr. No. 1.

Name Of Shareholder Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I) Life Insurance Corporation of India General Insurance Corporation and four PSU Insurance Companies Overseas Investors including FIIs/ OCBs/ NRIs Foreign Direct Investment (GDR issue) Other Indian Financial Institutions/ Mutual Funds/ Banks Others

% Of Paid Up Capital 24.00

2. 3.

10.27 4.27

4.

33.68

5. 6.

8.37 7.07

7. Total

12.34 100.00

Table 3: Shareholding pattern of Axis Bank

KEY PERFORMANCE INDICATORS Interest Income as a percentage of working funds* Non-Interest Income as a percentage of working funds Net Interest Margin Return on Average Net Worth Operating Profit as a percentage of working funds Return on Average Assets Profit per employee**

2009 - 10 7.73% 2.62% 3.75% 19.89% 3.48% 1.67% Rs. 11.63 lacs

2008 - 09 8.59% 2.30% 3.33% 19.93% 2.95% 1.44% Rs. 10.02 lacs Rs. 10.60 crores 0.35%

Business (Deposits less inter bank deposits + Advances) Rs. 11.11 per employee** crores Net Non performing assets as a percentage of net 0.36% customer assets *** Table 4: Key performance indicators of Axis Bank

THE FINANCIAL PERFORMANCE OF THE AXIS BANK as on 31st March 2010: (Rs. in crores) 2008 - 09 2009 10 117,374.11 141,300.22 33,861.80 32,167.74 104,343.12 20,822.90 83,520.22 180,647.85 5,004.49 3,945.78 822.38 3,123.40 25,822.12 24,821.61 81,556.77 16,051.78 65,504.99 147,722.05 3,686.21 2,896.88 373.86 2,523.02

PARTICULARS Deposits Out of which Savings Bank Deposits Current Account Deposits Advances Out of which Retail Advances Non-retail Advances Total Assets/Liabilities Net Interest Income Other Income Out of which Trading Profit (1) Fee & other income

Growth 20.38% 31.13% 29.60% 27.94% 29.72% 27.50% 22.29% 35.76% 36.21% 119.97% 23.80% 30.19% 39.90% 24.20% 37.84% 47.84% 38.51% 38.51% 52.62% 34.94% 35.90%

2,669.55 Operating Expenses excl. depreciation 3,475.40 3,913.54 Profit before depreciation, provisions and 5,474.87 tax 188.66 Depreciation 234.32 969.84 Provision for Tax 1,336.83 939.68 Other Provisions & Write offs 1,389.19 1,815.36 Net Profit 2,514.53 Appropriations : 453.84 Transfer to Statutory Reserve 628.63 0.06 Transfer to Investment Reserve 14.88 146.72 Transfer to Capital Reserve 223.92 Transfer to General Reserve 0.31 420.52 Proposed Dividend 567.45 794.22 Surplus carried over to Balance Sheet 1,079.34 Table 5: Financial performance of Axis Bank

Chapter-3 INDUSTRY PROFILE

INDUSTRY PROFILE
THE INDIAN MUTUAL FUND INDUSTRY:
The largest categories of Mutual Funds are the ones floated by the private sector and by Foreign Asset Management Companies. The largest of these are Prudential ICICI AMC and Birla Sun Life AMC. The aggregate corpus of assets managed by this category of AMCs is in excess of Rs.350 bn. Earlier the Indian Mutual Fund industry was dominated by the Unit Trust of India which has a total corpus of Rs.700 bn collected from more than 20 million investors. The UTI has many funds/schemes in all categories i.e. equity, balanced, income etc. with some being open-ended and some being closed-ended. The Unit Scheme 1964 commonly referred to as US 64, which is a balanced fund, is the biggest scheme with a corpus of about Rs.200 bn. UTI was floated by financial institutions and is governed by a special Act of Parliament. Most of its investors believe that the UTI is government owned and controlled, which, while legally incorrect, is true for all practical purposes. The second largest categories of mutual funds are the ones floated by nationalized banks. Canara bank Asset Management floated by Canara Bank and SBI Funds Management floated by the State Bank of India are the largest of these. GIC AMC floated by the General Insurance Corporation and Jeevan Bima Sahayog AMC floated by the LIC are some of the other prominent ones. The aggregate corpus of funds managed by this category of AMCs is about Rs.200 bn.

HISTORY OF INDIAN MUTUAL FUNDS INDUSTRY:

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

First Phase 1964-87:

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

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 number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 Cores. The Unit Trust of India with Rs.44,541 Cores of assets under management was way ahead of other mutual funds.

Fourth Phase since February 2003:

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 Cores of assets under management and with the setting up of a UTI Mutual Fund, conforming to

the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 Cores under 421 schemes. The net asset value (NAV) of mutual funds in India declined when stock prices started falling in the year 1992. Those days, the market regulations did not allow portfolio shifts into alternative investments. There was rather no choice apart from holding the cash or to further continue investing in shares. One more thing to benoted, since only closed-end funds were floated in the market, the investors disinvested by selling at a loss in the secondary market. The performance of mutual funds in India suffered qualitatively. The 1992 stock market scandal, the losses by disinvestments and of course the lack of transparent rules in the whereabouts rocked confidence among the investors. Funds now have shifted their focus to the recession free sectors like pharmaceuticals, FMCG and technology sector. Funds performances are improving. Funds collection, which averaged at less than Rs100bn per annum over five-year period spanning 1993-98 doubled to Rs210bn in 1998-99. In the 2000 mobilization had exceeded Rs300bn. Total collection for the financial year ending March 2000 reached Rs.450bn.

STRUCTURE OF MUTUAL FUND:

The Mutual Funds are structured in two forms: Company form and Trust form.

 Company Form: These forms of mutual funds are more popular in US. Trust Form: In India, mutual funds are organized as Trusts. The Trust is either managed by a Board of Trustees or by a Trustee Company. There must be at least 4 members in the Board of Trustees and at least 2/3 of the members of the board must be independent. Trustee of one mutual fund cannot be a trustee of another mutual fund.

Unit Trusts Constituents:

A Mutual Fund is set up in the form of a Trust which has the following constituents:1. Fund Sponsor 2. Trust 3. Asset Management Company 4. Other Fund Constituents 4.1. Custodian and Depositors 4.2. Brokers 4.3. Transfer Agent 4.4. Distributor

1. FUND SPONSOR:
What a promoter is to a company, a sponsor is to a mutual fund. The sponsor initiates the idea to set up a mutual fund. It could be a financial services company, a bank or a financial institution. It could be Indian or foreign. It could do it alone or through a joint venture. In order to run a mutual fund in India, the sponsor has to obtain a license from SEBI. For this, it has to satisfy certain conditions, such as on capital and profits, track record (at least five years in financial services), default-free dealings and a general reputation for fairness. The sponsor must have been profit making in at least 3 years of the above 5 years.

The Sponsor appoints the Trustees, Custodian and the AMC with the prior approval of SEBI and in accordance with SEBI Regulations. Like the company promoter, the sponsor takes big-picture decisions related to the mutual fund, leaving money management and other such nitty-gritty to the other constituents, whom it appoints. The sponsor should inspire confidence in you as a money manager and, preferably, be profitable. Financial muscle, so long as it is complemented by good fund management, helps, as money is then not an impediment for the mutual fund- it can hire the best talent, invest in technology and continuously offer high service standards to the investors. In the days of assured return schemes, sponsors also had to fulfill return promises made to the unit holders. This sometimes meant meeting shortfalls from their own pockets, as the government did for UTI. Now that assured return schemes are passed, such bailouts wont be required. All things considered, choose sponsors who are good money managers, who have a reputation for fair business practices and who have deep pockets.

2. TRUST:
The Mutual Fund is constituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908. The Trust appoints the Trustees who are responsible to the investors of the fund.

TRUSTEES:
Trustees are like internal regulators in a mutual fund, and their job is to protect the interests of the unit holders. Trustees are appointed by the sponsors, and can be either individuals or corporate bodies. In order to ensure they are impartial and fair, SEBI rules mandate that at least two-thirds of the trustees be independent, i.e., not have any association with the sponsor. Trustees appoint the AMC, which subsequently, seeks their approval for the work it does, and reports periodically to them on how the business being run. Trustees float and market schemes, and secure necessary approvals. They check if the AMCs investments are within defined limits and whether the funds assets are protected. Trustees can be held accountable for financial irregularities in the mutual fund.

Rights of the Trustees:

Trustees appoint the AMC in consultation with the sponsor and according to the SEBI Regulations. All Mutual Fund Schemes floated by the AMC have to be approved by the Trustees. Trustees can seek information from the AMC regarding the operations and compliance of the mutual fund. Trustees review and ensure that the net worth of the AMC is according to the stipulated norms, every quarter.

Obligations of the Trustees:

Trustees must ensure that the transactions of the mutual fund are in accordance with the trust deed. Trustees must ensure that the AMC has systems and procedures in place. Trustees must ensure due diligence on the part of AMC in the appointment of constituents and business associates. Trustees must furnish to the SEBI, on half yearly basis a report on the activities of the AMC. Trustees must ensure compliance with SEBI Regulations.

3. ASSET MANAGEMENT COMPANY (AMC):

An AMC is the legal entity formed by the sponsor to run a mutual fund. The AMC is usually a private limited company in which the sponsors and their associates or joint venture partners are the shareholders. The trustees sign an investment agreement with the AMC, which spells out the functions of the AMC. It is the AMC that employs fund managers and analysts, and other personnel. It is the AMC that handles all operational matters of a mutual fund from launching schemes to managing them to interacting with investors. The people in the AMC who should matter the most to you are those who take investment decisions. There is the head of the fund house, generally referred to as the Chief

Executive Officer (CEO). Under him comes the Chief Investment Officer (CIO), who shapes the funds investment philosophy, and fund managers, who manages its schemes. They are assisted by a team of analysts, who track markets, sectors and companies. Although these people are employed by the AMC, its you, the unit holders, who pays their salaries, partly or wholly. Each scheme pays the AMC an annual fund management fee, which is linked to the scheme size and results in a corresponding drop in your return. If a schemes corpus is up to Rs.100 crores it pays 1.25% of its corpus a year; on over Rs.100 crores, the fee is 1% of the corpus. So, if a fund house has two schemes, with a corpus of Rs.100 crores and Rs.200 crores respectively, the AMC will earn Rs.3.25 crore (1.25+2) as fund management fee that year. If an AMCs expenses for the year exceed what it earns as fund management fee from its schemes, the balance has to be met by the sponsor. Again, financial strength comes into play: a cash-rich sponsor can easily pump in money to meet short falls, while a sponsor with less financial clout might force the AMC to trim costs, which could well turn into an exercise in cutting corners.

Regulatory requirements for the AMC:

Only SEBI registered AMC can be appointed as investment managers of mutual funds. AMC must have a minimum net worth of Rs.10 crores at all times. An AMC cannot be an AMC or Trustee of another Mutual Fund. AMCs cannot indulge in any other business, other than that of asset management. At least half of the members of the Board of an AMC have to be independent. The 4th schedule of SEBI Regulations spells out rights and obligations of both trustees and AMCs.

Obligations of the AMC:

Investments have to be according to the investment management agreement and SEBI regulations.

 The actions of its employees and associates have to be as mandated by the trustees. AMCs have to submit detailed quarterly reports on the working and performance of the mutual fund. AMCs have to make the necessary statutory disclosures on portfolio, NAV and price to the investors.

Restrictions on the AMC:

AMCs cannot launch a scheme without the prior approval of the trustees. AMCs have to provide full details of the investments by employees and Board members in all cases where the investment exceeds Rs.1 lakh. AMCs cannot take up any activity that is in conflict with the activities of the mutual fund.

Conditions under which an AMC can be taken over:

SEBI approval is required for the change of ownership and unit holders have to be informed of the takeover. Scheme take over: If an existing mutual fund scheme is taken over by another AMC, it is called as scheme take over. The two mutual funds continue to exist. Trustee and SEBI approval and notification of the unit holders are required for scheme take over.

4. Other Fund Constituents: 4.1. CUSTODIAN:

A custodian handles the investment back office of a mutual fund. Its responsibilities include receipt and delivery of securities, collection of income, distribution of dividends and segregation of assets between the schemes. It also track corporate actions like bonus issues, right offers, offer for sale, buy back and open offers for acquisition. The sponsor of a mutual fund cannot act as a custodian to the fund. This condition, formulated in the interest of investors, ensures that the assets of a mutual fund are not in the hands of its sponsor. For example, Deutsche Bank is a custodian, but it cannot service Deutsche Mutual Fund, its mutual fund arm.

4.2. BROKERS: Role of Brokers in a Mutual Fund: They enable the investment managers to buy and sell securities. Brokers are the registered members of the stock exchange. They charge a commission for their services. In some cases, provide investment managers with research reports. Act as an important source of market information.

4.3. REGISTRAR OR TRANSFER AGENTS:

Registrars, also known as the transfer agents, are responsible for the investor servicing functions. This includes issuing and redeeming units, sending fact sheets and annual reports. Some fund houses handle such functions in-house. Others outsource it to the Registrars; Karvy and CAMS are the more popular ones. It doesnt really matter which model your mutual fund opt for, as long as it is prompt and efficient in servicing you. Most mutual funds, in addition to registrars, also have investor service centers of their own in some cities.

4.4. DISTRIBUTORS:
Role of Selling and Distribution Agents: Selling agents bring investors funds for a commission. Distributors appoint agents and other mechanisms to mobilize funds from the investors. Banks and post offices also act as distributors. The commission received by the distributors is split into initial commission which is paid on mobilization of funds and trail commission which is paid depending on the time the investor stays with the fund.

ABOUT MUTUAL FUND AND ITS VARIOUS ASPECTS:

Before we understand what is mutual fund, its very important to know the area in which mutual funds works, the basic understanding of stocks and bonds.

Stocks:
Stocks represent shares of ownership in a public company. Examples of public companies include Reliance, ONGC and Infosys. Stocks are considered to be the most common owned investment traded on the market.

Bonds:
Bonds are basically the money which you lend to the government or a company, and in return you can receive interest on your invested amount, which is back over predetermined amounts of time. Bonds are considered to be the most common lending investment traded on the market. There are many other types of investments other than stocks and bonds (including annuities, real estate, and precious metals), but the majority of mutual funds invest in stocks and/or bonds.

WHAT IS MUTUAL FUND:

A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds). When you invest in a mutual fund, you are buying units or portions of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund. Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient and also easy to invest in, thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing risk & maximizing returns. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund.

WORKING OF MUTUAL FUND:

The flow chart below describes broadly the working of a Mutual Fund.

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. These could range from shares to debentures to money market instruments. The income earned through these investments and the capital appreciations realized by the schemes are shared by its unit holders in proportion to the number of units owned by them. Thus a mutual fund is the most suitable investment for the common person as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. Since small investors generally do not have adequate time, knowledge, experience & resources for directly accessing the capital market, they have to rely on an intermediary, which undertakes informed investment decisions & provides consequential benefits of professional expertise. The advantage of Mutual Funds to the investors is professional managed, low transaction cost, liquidity, transparency, well regulated, diversified portfolios & tax benefits. By pooling their assets through mutual funds, investors achieve economies of scale. A collected corpus can be used to procure a diversified portfolio indicating greater returns has also create economies of scale through cost reduction. This principle has been effective worldwide as more & more investors are going the mutual fund way. This portfolio diversification ensures risk minimization. The criticality such a measure comes in when you factor in the fluctuations that characterize stock markets. The interest of the investors is protected by the SEBI, which acts as a watchdog. Mutual funds are governed by SEBI (Mutual Funds) regulations, 1996.

TYPE OF MUTUAL FUND SCHEMES:

Mutual fund schemes may be classified on the basis of its structure and its investment objective.

Based on their structure: Open-ended Funds:

An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.

 Closed-ended Funds:
A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. In order to provide an exit route to the investors, some close ended funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor.

Interval Funds:
Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre-determined intervals at NAV related prices.

Based on their investment objective:

Equity funds:
These funds invest in equities and equity related instruments. With fluctuating share prices, such funds show volatile performance, even losses. However, short term fluctuations in the market, generally smoothens out in the long term, thereby offering higher returns at relatively lower volatility. At the same time, such funds can yield great capital appreciation as, historically, equities have outperformed all asset classes in the long term. Hence, investment in equity funds should be considered for a period of at least 3-5 years. It can be further classified as: i. Index Funds: In this case a key stock market index, like BSE Sensex or Nifty is tracked. Their portfolio mirrors the benchmark index both in terms of composition and individual stock weight ages. Equity Diversified Funds: 100% of the capital is invested in equities spreading across different sectors and stocks. Dividend Yield Funds: it is similar to the equity diversified funds except that they invest in companies offering high dividend yields.

ii.

iii.

iv.

Thematic Funds: Invest 100% of the assets in sectors which are related through some theme .e.g. -An infrastructure fund invests in power, construction, cements sectors etc. Sector Funds: Invest 100% of the capital in a specific sector. e.g. - A banking sector fund will invest in banking stocks. ELSS: Equity Linked Saving Scheme provides tax benefit to the investors.

v.

vi.

Balanced fund:
Their investment portfolio includes both debt and equity. As a result, on the risk-return ladder, they fall between equity and debt funds. Balanced funds are the ideal mutual funds vehicle for investors who prefer spreading their risk across various instruments. It can be further classified as: i) Debt-Oriented Funds: Investment below 65% in equities.

ii)

Equity-Oriented Funds: Invest at least 65% in equities, remaining in debt.

Debt fund:
They invest only in debt instruments, and are a good option for investors averse to idea of taking risk associated with equities. Therefore, they invest exclusively in fixed-income instruments like bonds, debentures, Government of India securities; and money market instruments such as certificates of deposit (CD), commercial paper (CP) and call money. Put your money into any of these debt funds depending on your investment horizon and needs. . It can be further classified as: i) Liquid Funds: These funds invest 100% in money market instruments, a large portion being invested in call money market. Gilt Funds ST: They invest 100% of their portfolio in government securities of and T-bills. Floating Rate Funds: Invest in short-term debt papers. Floaters invest in debt instruments which have variable coupon rate.

ii)

iii)

iv)

Arbitrage Fund: They generate income through arbitrage opportunities due to mispricing between cash market and derivatives market. Funds are allocated to equities, derivatives and money markets. Higher proportion (around 75%) is put in money markets, in the absence of arbitrage opportunities. Gilt Funds LT: They invest 100% of their portfolio in long-term government securities. Income Funds LT: Typically, such funds invest a major portion of the portfolio in long-term debt papers. MIPs: Monthly Income Plans have an exposure of 70%-90% to debt and an exposure of 10%-30% to equities. FMPs: Fixed monthly plans invest in debt papers whose maturity is in line with that of the fund.

v)

vi)

vii)

viii)

INVESTMENT STRATEGIES OF MUTUAL FUNDS: Systematic Investment Plan (SIP):

Under SIP a fixed sum of your money is taken away from your Bank Accounts and invested in a Mutual fund. Payment is made through post dated cheques or direct debit facilities. The investor gets fewer units when the NAV is high and more units when the NAV is low. This is called as the benefit of Rupee Cost Averaging (RCA).

Systematic Transfer Plan (STP):

The way STP works is, all your money is actually invested in a Mutual funds itself (probably Debt) and units are sold every month and its invested in another Mutual fund (probably Equity) or vice versa . Under this an investor invest in debt oriented fund and give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same mutual fund.

Systematic Withdrawal Plan (SWP):

If someone wishes to withdraw his/her money from a mutual fund then he/she can withdraw a fixed amount each month. You should redeem your units in mutual funds every month and get it deposited in your Bank accounts , its called SWP (systematic Withdrawal Plan) , which is recommended to liquidate your mutual funds corpus after you see a good bull market to protect your investment.

RISKS ASSOCIATED WITH MUTUAL FUNDS:

The most important relationship to understand is the risk-return trade-off. Higher the risk greater the returns/loss and lower the risk lesser the returns/loss. Hence it is up to you, the investor to decide how much risk you are willing to take. In order to do this you must first be aware of the different types of risks involved with your investment decision.

MARKET RISK:
Sometimes prices and yields of all securities rise and fall. Broad outside influences affecting the market in general lead to this. This is true, may it be big corporations or smaller mid-sized companies. This is known as Market Risk. A Systematic Investment Plan (SIP) that works on the concept of Rupee Cost Averaging (RCA) might help mitigate this risk.

CREDIT RISK:
The debt servicing ability (may it be interest payments or repayment of principal) of a company through its cash flows determines the Credit Risk faced by you. This credit risk is measured by independent rating agencies like CRISIL who rate companies and their

paper. An AAA rating is considered the safest whereas a D rating is considered poor credit quality. A well-diversified portfolio might help mitigate this risk.

INFLATION RISK:
Things you hear people talk about Rs. 100 today is worth more than Rs. 100 tomorrow. The root cause, Inflation. Inflation is the loss of purchasing power over time. A lot of times people make conservative investment decisions to protect their capital but end up with a sum of money that can buy less than what the principal could at the time of the investment. This happens when inflation grows faster than the return on your investment. A well-diversified portfolio with some investment in equities might help mitigate this risk.

INTEREST RATE RISK:

In a free market economy interest rates are difficult if not impossible to predict. Changes in interest rates affect the prices of bonds as well as equities. If interest rates rise the prices of bonds fall and vice versa. Equity might be negatively affected as well in a rising interest rate environment. A well-diversified portfolio might help mitigate this risk.

POLITICAL RISK:
Changes in government policy and political decision can change the investment environment. They can create a favourable environment for investment or vice versa.

LIQUIDITY RISK:
Liquidity risk arises when it becomes difficult to sell the securities that one has purchased. Liquidity Risk can be partly mitigated by diversification, staggering of maturities as well as internal risk controls that lean towards purchase of liquid securities. You have been reading about diversification above, but what is it? Diversification the nuclear weapon in your arsenal for your fight against risk. It simply means that you must spread your investment across different securities (stocks, bonds, money market instruments, real estate, fixed deposits etc.) and different sectors (auto, textile, information technology etc.). This kind of a diversification may add to the stability of your returns.

ADVANTAGES OF MUTUAL FUND:

Professional Management:
Mutual Funds provide the services of experienced and skilled professionals, backed by a dedicated investment research team that analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme.

Diversification:
Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. You achieve this diversification through a Mutual Fund with far less money than you can do on your own.

Convenient Administration:
Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries, delayed payments and follow up with brokers and companies. Mutual Funds save your time and make investing easy and convenient.

Return Potential:
Over a medium to long-term, Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities.

 Low Costs:
Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits of scale in brokerage, custodial and other fees translate into lower costs for investors.

Liquidity:
In open-end schemes, the investor gets the money back promptly at net asset value related prices from the Mutual Fund. In closed-end schemes, the units can be sold on a stock exchange at the prevailing market price or the investor can avail of the facility of direct repurchase at NAV related prices by the Mutual Fund.

Transparency:
You get regular information on the value of your investment in addition to disclosure on the specific investments made by your scheme, the proportion invested in each class of assets and the fund manager's investment strategy and outlook.

Flexibility:
Through features such as regular investment plans, regular withdrawal plans and dividend reinvestment plans, you can systematically invest or withdraw funds according to your needs and convenience.

Affordability:
Investors individually may lack sufficient funds to invest in high-grade stocks. A mutual fund because of its large corpus allows even a small investor to take the benefit of its investment strategy.

Choice of Schemes:
Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.

Well Regulated:
All Mutual Funds are registered with SEBI and they function within the provisions of strict regulations designed to protect the interests of investors. The operations of Mutual Funds are regularly monitored by SEBI.

DISADVANTAGE OF MUTUAL FUND:

There are certainly some benefits to mutual fund investing, but you should also be aware of the drawbacks associated with mutual funds.

No Insurance:
Mutual funds, although regulated by the government, are not insured against losses. The Federal Deposit Insurance Corporation (FDIC) only insures against certain losses at banks, credit unions, and savings and loans, not mutual funds. That means that despite the risk reducing diversification benefits provided by mutual funds, losses can occur, and it is possible (although extremely unlikely) that you could even lose your entire investment.

Dilution:
Although diversification reduces the amount of risk involved in investing in mutual funds, it can also be a disadvantage due to dilution. For example, if a single security held by a mutual fund doubles in value, the mutual fund itself would not double in value because that security is only one small part of the fund's holdings. By holding a large number of different investments, mutual funds tend to do neither exceptionally well nor exceptionally poorly.

Fees and Expenses:

Most mutual funds charge management and operating fees that pay for the fund's management expenses (usually around 1.0% to 1.5% per year). In addition, some mutual funds charge high sales commissions, 12b-1 fees, and redemption fees. And some funds buy and trade shares so often that the transaction costs add up significantly. Some of these expenses are charged on an ongoing basis, unlike stock investments, for which a commission is paid only when you buy and sell.

Poor Performance:
Returns on a mutual fund are by no means guaranteed. In fact, on average, around 75% of all mutual funds fail to beat the major market indexes, like the S&P 500, and a growing number of critics now question whether or not professional money managers have better stock-picking capabilities than the average investor.

 Loss of Control:
The managers of mutual funds make all of the decisions about which securities to buy and sell and when to do so. This can make it difficult for you when trying to manage your portfolio. For example, the tax consequences of a decision by the manager to buy or sell an asset at a certain time might not be optimal for you. You also should remember that you are trusting someone else with your money when you invest in a mutual fund.

Trading Limitations:
Although mutual funds are highly liquid in general, most mutual funds (called openended funds) cannot be bought or sold in the middle of the trading day. You can only buy and sell them at the end of the day, after they've calculated the current value of their holdings.

PART-2 Chapter-4 LITERATURE REVIEW

Literature Review

The literature review includes the Academic Books, Journals, Internet Access, Magazines etc.
ICFAI reader1- Mutual fund distribution channel- In this I gathered the information about the various parties involved in mutual fund transaction. It guided me to know about the growth of the various schemes of Mutual Fund over the last few years. Economic & political weekly2 April-2010 It helped me to know about the trends of mutual fund industry. Some data regarding this has been taken from it. Gupta S.P.3. The information regarding the statistical tools and their limitations in different fields the research is given in this section. This section explains why to use correlation and what are the situations in which correlation can be used, and what does correlation means. Schaums: Statistical Methods4- Sultan Chand Publication The information regarding the statistical tools and their limitations in different fields the research is given in this section. This section explains why to use trend analysis and what are the situations in which correlation can be used, and what does correlation means. Fisher & Jordan5: Security Analysis & Portfolio management-this book has been used to calculate the indices on which basis the ranking has been given. Pandian Punitawathy6: Security Analysis & portfolio management: This book helped in understanding the concept of different indices for portfolio evaluation. Beri G.C.7- Marketing Research 3rd edition: This book helped in understanding the different research designs and analytical tools used here. Kothari C.R.8 The information regarding the basics of research and research methodology , what are the different types of research designs, what is problem statement, what are the sources of data collection and what are the methods of data collection is given in this section Pandey I.M.9-Financial Management by Vikas Publishing House the concept of mutual funds & various schemes have been studied from this book.

 Srivastva10: Management of Indian Financial Institutions-Himalaya Publishing House 6th edition. Introduction of mutual funds, their advantages, disadvantages and various types have been taken from it. Indian journal of commerce11-jun, 2010: In this article they shows the growth of the mutual fund in India is given Southern Economist12 Sep.2009: In this the performance of the mutual fund was given. Journal of finance13-feb, 2010: In this the various schemes offered by the mutual fund houses were given. Facts for you14-jan, 2010: In the information about the risk and return was given. The Management Accountant15 - April 2010: In this article related to the benefit related to the mutual fund as Banks was given. .Southern Economist16 - December 15, 2009: different Mutual fund houses was given. SEBI Bulletin
17

comparison to the fixed deposits in he

In this the portfolio of the

July, 2009: In the Asset Management of the different mutual

fund houses was given. Charter financial analysis18-jan, 2010: In this information about the various Analytical tools was given Journal of finance19-dec, 2009: In this the fund size of the different Mutual fund was given. ICFAI reader20-july2008, Feb 2009: In this information about the Entry and Exit load was given.

Websites visited:

http://www.amfiindia.com/showhtml.asp?page=aboutusa-This site explained the information regarding various mutual funds and its growth in past years. www.mutualfundsindia/navreports.jspb It provided me the data regarding various parties involved in mutual funds and investment pattern of public and private sector mutual funds http://www.amfiindia.com/navtypereport.asp#Type10c Data regarding NAVs on different dates has been taken from this site. www.financeindiamart.comd- Different expert comments have been extracted & the mechanism of mutual funds has been taken from this site .http://www.hdfcfund.com/navcorner/index.jspe This site provided information regarding managing of funds by the investors and investment criteria in different funds http://www.bslmutualfund.com/aboutus/index.jspf--portfolio etc http://www.axismutualfund.com/aboutus/index.jspg-director etc http://www.valuereserachonline.com/history/ index.jsp-This site provided This site provided This site provided

information regarding Tata mutual fund such as history of Tata mutual fund,

information regarding UTI Mutual fund such as history, portfolio, board of

information regarding nifty index. This site provided past year of return nifty.

Chapter-5 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
The procedure adopted for conducting the research requires a lot of attention as it has direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that research methodology, which we used at the time of conducting the research, needs to be elaborated upon. Research Methodology is a way to systematically study & solve the research problems. If a researcher wants to claim his study as a good study, he must clearly state the methodology adopted in conducting the research so that it may be judged by the reader whether the methodology of work done is sound or not. The Research Methodology here includes:1. 2. 3. 4. 5. 6. Meaning of research Research problem Research design Sampling design Data collection method Analysis and interpretation of Data

Meaning of Research
Research is defined as a scientific & systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. Research is a systematized effort to gain new knowledge. It is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research is an academic activity and this term should be used in a technical sense. Research com prices defining and redefining problems, formulating hypothesis or suggested solutions; making deductions and reaching conclusions to determine whether they fit the formulating hypo thesis. Research is thus, an original contribution to the existing stock of knowledge making for its advancement. The search for knowledge through objective and systematic method of finding solution to a problem is research.

Research Design
A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is the conceptual structure within which research is conducted. It constitutes the blueprint for the collection measurement and analysis of data. Research design operational implication to the final analysis of data. A research design is a framework for the study and is used as a guide in collecting and analyzing the data. It is a strategy specifying which approach will be used for gathering

and analyzing the data. It also includes the time and cost budget since most studies are done under these two constraints. Research design can be categorized as:
Research Design

Exploratory Research Descriptive Research

Diagnostic Research Experimental Research

The present study is descriptive in nature, as it seeks to describe ideas and insight and to bring out new relationships. Research design is flexible enough to provide opportunity for considering different aspects of problems under study. It helps in bringing into focus some inherent weakness in enterprise regarding which in depth study can be conducted by management. In this study I will apply Descriptive Research Design. As Descriptive Research Design is the description of state of affairs, as it exists at present. In this type of research the researcher has no control over the variables, he can only report what has happened or what is happening.

OBJECTIVE OF STUDY: Main Objective:

The main objective of this project is to make the Comparative Analysis of the Axis MF with HDFC and BSL mutual funds and getting the opinion of people regarding Axis Mutual Fund.

Sub Objectives:
To study the Investment procedure in Mutual funds. To study in brief various Mutual funds promoted by different AMC. I have tried to explore the general opinion about mutual funds. To study the Mutual fund industry in detail.

 MANAGERIAL USEFULNESS OF STUDY:

This study will also give information about prospective investors both individual as well as institutional clients in areas of surrey where they can get lead. It provides the AMC a feedback from customers regarding their problems and perception about investing in mutual funds so that they can improve their services.

SCOPE OF THE STUDY: Geographical Scope:

The geographical scope of the study is not limited. The research was carried on in the Northern Region of India. It is restricted to kaithal. I have visited people randomly nearby my locality.

Functional Scope:
This study can be used to understand the behavioural aspect of people who invest, what is their investment potential and how much risk can they take. The study throws some light on t performing schemes of Axis Mutual Fund.

LIMITATIONS OF THE STUDY:

Availability of data was a constraint due to only those mutual funds data is considered, which is available, and also there are some MFs whose data was not available so their duration was shortened. Generally longer period gives us more accurate estimates of beta. In this case period of analysis is only 4 years. Though every - "precaution has taken due to large data and complex calculations there may be chances of error. Time Limitation. Research has been done only at Kaithal. Some of the persons were not so responsive. Possibility of error in data collection. Possibility of error in analysis of data due to small sample size.

 SAMPLING:

SAMPLING METHOD ADOPTED: The sampling method chosen is Area Sampling. As the primary sampling unit represents a cluster of units based on geographic area. The geographical area chosen for individual customers was at the Axis Bank Ltd. Kaithal Branch at Ambala Road. The sample is selected in a random way, irrespective of them being investor or not or availing the services or not. It was collected through mails and personal visits to the known persons, by formal and informal talks and through filling up the questionnaire prepared. Sample size: The sample size of my project is limited to 100 only. Out of which only 70 people attempted all 15 questions. Other 30 people not investing in Axis Mutual Fund. So, they attempted only 5 questions. Sample Design: A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. The corporate sea being very fast, it becomes impossible to contact each and every individual of the universe due to the time and money constraints. Therefore, the study has been narrowed down to a representative sample to make the study more manageable.

SOURCES OF DATA COLLECTION:

For the completion of this project both Primary and Secondary data are required.

Primary Data Collection:

Primary Data is the first hand information collected directly from the respondents .In dealing with real life problem it is often found that data at hand are inadequate, and hence, it becomes necessary to collect data that is appropriate. There are several ways of collecting the appropriate data which differ considerably in context of money costs, time and other resources at the disposal of the researcher. Primary data can be collected either through experiment or through survey. The data collection for this study was done in the following manner:

 Through personal interviews:

A rigid procedure was followed and we were seeking answers to many pre-conceived questions through personal interviews.

Through questionnaire:
I had prepared a questionnaire for collecting information about second part of the project. Information to find out the investment potential and goal was found out through Questionnaires.

Secondary Data Collection:

Secondary data is the second handed data. Secondary Data is collected through internet, books, journals, and axis mutual fund navigators.

DATA ANALYSIS PROCEDURE: The major focus is on the results of the questionnaire survey. I will screen all the questionnaires in order to gain a first overview over the data gathered. The analysis of the data generated during the study with the help of various statistical tools like bar charts & pie charts.

At the last I will draw all conclusion regarding customers preferences and satisfaction about mutual funds.

COMPARATIVE ANALYSIS

AXIS MUTUAL FUND

Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank today is capitalized to the extent of Rs. 405.17 crores with the public holding (other than promoters and GDRs) at 53.09%. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a very wide network of more than 1000 branches and Extension Counters (as on 31st March 2010). The Bank has a network of over 4055 ATMs (as on 31st March 2010) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.

Corporate Social Responsibility

Axis Bank takes its corporate social responsibility seriously. It set up the Axis Bank Foundation (registered as a public trust) in 2006 to support its philanthropy. Each year, the Bank transfers 1% of its net profits of the previous year to the Foundation. The Foundation focuses on education for underprivileged children. Axis Bank shares the belief that micro-credit and microfinance services are major enablers of financial inclusion to the under privileged sections of society. The Bank has 86 microfinance relationships in 18 states of which 4 are in the North East with a corresponding client outreach of around 18.50 lakh. Most of the beneficiaries are poor women engaged in small and marginal enterprises. The Bank looks at agri-business as an inclusive and profitable business proposition. The retail agriculture organisational model consists of 46 strategically placed agriculture clusters. The Bank offers its retail agri products to farmers through 249 of its branches.

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. As Axis Bank Financial Advisory team, we adopt a strong research driven recommendation model to help you choose the best funds based on qualitative and quantitative parameters. Apart from this, a dedicated Relationship Manager can also be assigned to you to ensure that your investment requirements are taken care of, smoothly and efficiently. Our advisors understand your profile and lead you through a structured financial planning process to devise financial solutions best suited to you. The advisors will also help you choose the right investment products in line with your investment goals.

Board of Directors:

Shikha Sharma, Chairperson, Associate Director MD & CEO of Axis Bank Over two decades of experience across the spectrum of financial services Instrumental in setting up various market leading businesses for the ICICI Group T S Narayanasami, Independent Director Has been the Chairman & Managing Director of Bank of India, Indian Overseas Bank and Andhra Bank Has held various important positions within the banking industry Pranesh Misra, Independent Director Founder of Brandscapes Consultancy Private Limited Over 26 years experience in communication, marketing, marketing research, brand planning and international client management across varied industries U R Bhat, Independent Director Managing Director of Dalton Capital Advisors (India) Fellow of the Chartered Institute of Bankers, London

 Previously the Head of Country Operations of Jardine Fleming Asset Management Company (AMC) in India for 7 years advising the India dedicated funds of the Flemings Group. Ms. Sonu Bhasin, Associate Director President Retail Banking Retail Liability at Axis Bank Heads the Wealth Management Division which includes the Financial Advisory Services for the Retail Investors and Wealth Management for the HNIs In previous role with ING Vysya Bank has handled several assignments in the areas of Private Banking, Financial Services & Third Party Products .

Rajiv Anand, MD & CEO of Axis AMC, Associate Director A Chartered Accountant with over 19 years experience in capital markets Led an award winning investment management team at IDFC (erstwhile Standard Chartered) AMC Awarded Business Standards Debt Fund Manager of the year in 2004 Worked in the Treasuries of HSBC and Standard Chartered Bank

Business Philosophy:
Our business will be built on three pillars. These are: Outside-in View Investor at the heart of every single decision. Communicate in his language, not in ours. Enduring Wealth Creation Play a serious and credible role in investor's money basket. Encourage investors to build a long-term perspective of the mutual fund category. Long-term Relationships Leverage the equity of the 'Axis' brand Aim at building relationships rather than being transactional.

AXIS EQUITY-GROWTH FUND

Fund objective:
An open-ended balanced fund investing between 40% to 75% in equity related securities and the balanced in debt (fixed income securities) with a view of generate regular income together with capital appreciation.

Fund Manager:

Mr. Chandresh Nigam

Fund Profile Latest NAV 52- Week High 52- Week Low Fund Category 75.68 (07/04/2010) 75.68 (07/04/2010) 47.31(08/04/2009) Hybrid: Equity Oriented Fund Type Open-Ended Launch Date March 1995 Risk Grade Average Return Grade Average Net Assets (Cr) 1957.19 (31/03/2010) Table 6: Fund profile of Axis Equity Growth Fund Period 1-Month 3-Month 1-year 3-year 5-year

Returns Returns (%) 4.36 2.17 61.81 13.33 16.01

Table7: Returns of Axis Equity Growth Fund

Sector Allocation Top 5 Sectors % Net Asset As on 28/02/2010 Energy 13.70 Engineering 7.90 Financial 7.62 Technology 6.03 Diversified 5.54 Table 8: Sector allocation of Axis Equity Growth Fund

Asset Allocation As on 28/02/2010 % Net Asset Equity Debt Others 73.24 24.79 01.97

Table 9: Asset allocation of Axis Equity Growth Fund

Portfolio Top Holdings

Company Sector Mkt.Value*(Rs. In Cores) Equity Shares RELIANCE Oil & Gas 34.26 INFOSYS TECH Technology 33.46 BHEL Engineering 30.54 TCS Technology 28.13 LARSEN Engineering 27.66 NTPC Utilities 25.28 SBI Banks 23.69 AXIS BANK Banks 23.26 HDFC BANK Banks 23.06 SILMENS Telecom 22.92 BHARAT ELECTRONICS Engineering 18.40 ONGC Energy 16.98 GRASIM INDUSTRIES Diversified 16.17 TATA TEA FMCG 15.92 ITC LTD FMCG 15.73 Debt Holdings Company Instrument Mkt.Value* (Rs. In Cores) EMAAR MGF LAND & PVT Realty 76.46 GOI Sovereign 58.34 UCO BANK Finance 20.00 Table 10: Portfolio Holdings Of Axis Equity Growth Fund % of Asset 3.35 3.27 2.98 2.75 2.70 2.47 2.32 2.27 2.25 2.24 1.80 1.66 1.58 1.56 1.54 % of Asset 7.47 5.70 1.95

History AXIS Equity-Growth Fund 2009 2008 2007 2006 2005 41.42 48.02 32.56 26.15 20.80 NAV -13.74 47.48 22.78 40.22 22.34 Total Return -8.90 1.87 26.45 9.72 +/- S&P CNX Nifty 3.15 Net Assets Rs. Cr. 1805.8 2108.90 1555.80 1508.70 1295.30 Table 11: History Of Axis Equity Growth Fund 2004 20.11 100.70 28.16 1443.20

HDFC MUTUAL FUND

HDFC (Housing Development Finance Corporation Limited) is one of the dominant players in the Indian mutual fund space. HDFC was incorporated in 1977 as the first specialised Mortgage Company in India. HDFC Mutual Funds are handled by HDFC Asset Management Company Limited. HDFC Asset Management Company was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the Mutual Fund by SEBI on July 3, 2000. The company also provides portfolio management / advisory services.

HDFC Asset Management Company Limited (AMC):

HDFC Asset Management Company (AMC) is the first AMC in India to have been assigned the CRISIL Fund House Level 1 rating. This is its highest Fund Governance and Process Quality Rating which reflects the highest governance levels and fund management practices at HDFC AMC It is the only fund house to have been assigned this rating for two years in succession. Over the past, we have won a number of awards and accolades for HDFC performance. We believe, that, by giving the investor long-term benefits, we have to constantly review the markets for new trends, to identify new growth sectors and share this knowledge with our investors in the form of product offerings. We have come up with various products across asset and risk categories to enable investors to invest in line with their investment objectives and risk taking capacity. Besides, we also offer Portfolio Management Service. HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter dated June 30, 2000.

Vision:
To be a dominant player in the Indian mutual fund space, recognized for its high levels of ethical and professional conduct and a commitment towards enhancing investor interests.

HDFC EQUITY-GROWTH FUND

Fund objective:
An open-ended balanced scheme with the objective of long term growth of capital and current income, through a portfolio of equity and fixed income securities. The HDFC Equity-Growth fund seeks to achieve long- term capital appreciation and current income from a balanced portfolio with a target allocation of 70% equity, 30% debt and money market securities.

Fund Manager:

Mr. Prashant Jain Returns Period 1-Month 3-Month 6-Month 1-year 2-year 3-year 5-year Returns (%) 4.9 7.5 9.4 54.2 81.5 50.7 244.2

Fund Profile Latest NAV 52- Week High 52- Week Low Fund Category 277.09(31/03/2010) 277.10(29/03/2010) 152.67(01/04/2009) Hybrid: Equity Oriented Fund Type Open-Ended Launch Date December 1994 Risk Grade Average Return Grade Above Average Net Assets (Cr) 6734.63 (28/02/2010) Table 12: Fund profile of HDFC Equity Growth Fund Sector Allocation Top 5 Sectors As on 28/02/2010 Banking/Finance Oil & Gas Pharmaceuticals Technology Engineering % Net Asset 22.15 15.32 09.92 07.34 07.05

Table 13: Returns of HDFC Equity Growth Fund Asset Allocation

As on 28/02/2010 Equity Debt Others

% Net Asset 65.48 9.81 24.71

Table 14: Sector Allocation Of HDFC Equity Growth Fund

Table 15: Asset Allocation Of HDFC Equity Growth Fund

Portfolio Top Holdings

Company Sector Mkt.Value*(Rs. In Cores) % of Asset Equity Shares SBI Banks 506.44 7.52 ONGC Oil & Gas 449.07 6.67 TITAN INDUSTRY Miscellaneous 255.45 3.79 BANK OF BARODA Banks 252.49 3.75 ICICI BANK Banks 216.28 3.21 INFOSYS Technology 195.37 2.90 NTPC Utilities 194.36 2.89 LARSEN Engineering 194.01 2.88 GAIL Oil & Gas 188.20 2.79 ZEE ENTERTAIN Media 186.12 2.76 Table 16: Portfolio Holdings Of HDFC Equity Growth Fund

History HDFC Equity- Growth Fund 2009 188.42 NAV -15.63 Total Return +/- S&P CNX Nifty 3.15 Net Assets Rs. Cr. 4716.6 2008 223.32 53.61 -8.90 5491.4 2007 145.39 35.86 1.87 3937.7 2006 107.01 62.70 26.45 2185.2 2005 65.77 27.53 9.72 1148.6 2004 51.57 126.30 28.16 978.0

Table 17: History Of HDFC Equity Growth Fund

BIRLA SUN LIFE MUTUAL FUND

Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment managers of Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun Life Financial Services Inc. of Canada. The joint venture brings together the Aditya Birla Group's experience in the Indian market and Sun Life's global experience. Established in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading flagships of Mutual Funds business managing assets of a large investor base. Our solutions offer a range of investment options, including diversified and sector specific equity schemes, fund of fund schemes, hybrid and monthly income funds, a wide range of debt and treasury products and offshore funds.

Vision:
To be a leader and role model in a broad based and integrated financial services business.

Mission:
To consistently pursue investor's wealth optimization by: Achieving superior and consistent investment results. Creating a conducive environment to hone and retain talent. Providing customer delight. Institutionalizing system-approach in all aspects of functioning. Upholding highest standards of ethical values at all times.

 Values:
Integrity Commitment Passion Seamlessness

Birla Sun Life Asset Management Company has one of the largest team of research analysts in the industry, dedicated to tracking down the best companies to invest in. BSLAMC strives to provide transparent, ethical and research-based investments and wealth management services Birla Sun Life Asset Management Company follows a long-term, fundamental research based approach to investment. The approach is to identify companies, which are excellent growth prospects and strong fundamental. The fundamental include the quality of the company management, sustainability of its business model and its competitive position, amongst other factor. The fund has more than 224 schemes with AUM of Rs. 49983.17 Cr.

BIRLA SUN LIFE 95-GROWTH FUND

Fund objective:
An open-ended balanced scheme with the objective of long term growth of capital and current income, through a portfolio of equity and fixed income securities. The Birla Sun Life 95- Growth seeks to achieve long- term capital appreciation and current income from a balanced portfolio with a target allocation of 60% equity, 40% debt and money market securities.

Fund Manager:

Mr. Nishit Dholakia Returns Period 1-Month 3-Month 6-Month 1-year 2-year 3-year 5-year Returns (%) 4.5 4.7 7.6 36.6 28.5 12.8 21.1

Fund Profile Latest NAV 52- Week High 52- Week Low Fund Category 47.56(31/03/2010) 49.63(29/03/2010) 38.09(01/04/2009) Hybrid: Equity Oriented Fund Type Open-Ended Launch Date February 1995 Risk Grade Average Return Grade Above Average Net Assets (Cr) 253.85 (28/02/2010) Table 18: Fund Profile Of BSL 95Growth Fund Sector Allocation Top 5 Sectors % Net Asset As on 28/02/2010 Financial 13.70 Services 7.90 Diversified 7.62 FMCG 6.03 Metals 5.54 Table 20: Sector Allocation Of BSL 95-Growth Fund

Table 19: Returns Of BSL 95Growth Fund Asset Allocation As on 28/02/2010 % Net Asset Equity Debt Others 66.09 4.74 29.16

Table 21: Asset Allocation Of BSL 95- Growth Fund

Portfolio Top Holdings

Company Equity Shares RALLI INDIA TRENT ICICI BANK INFOSYS TECH AXIS BANK RELIANCE HDFC BANK ALLHABAD BANK NESTLE LTD HIND. ZINC CROMPTION GR. LUPIN LTD TO POWER AEC HCL TECH ITC LTD WIPRO LTD Debt Company Sector Mkt.Value*(Rs. In Cores) 87.46 78.64 72.52 63.64 61.64 53.59 50.04 48.68 38.49 38.40 37.41 36.64 35.92 35.96 35.20 34.43 Mkt.Value* (Rs. In Cores) 7.30 % of Asset 3.48 3.23 3.10 2.86 2.51 2.43 2.11 1.97 1.92 1.52 1.51 1.47 1.44 1.42 1.39 1.36 % of Asset 2.88 1.87

Pesticide Retailing Banks IT- Software Petroleum Products Banks Banks Banks Consumer Non Durables Non Ferrous Metals Industrial Capital Goods Pharmaceuticals Power IT- Software Consumer Non Durables IT- Software Instrument

INDUSTRIAL DEVELOPMENT Bond BANK OF INDIA LTD 7.02 GOI Securities 4.37 Table 22: Portfolio Holdings of BSL 95- Growth Fund

History Birla Sun Life 95- Growth Fund 2009 38.09 NAV -17.90 Total Return +/- S&P CNX Nifty 3.15 Net Assets Rs. Cr. 142.7 2008 46.40 83.60 -8.90 170.9 2007 25.27 29.03 1.87 92.0 2006 19.38 39.97 26.45 104.6 2005 13.99 NA 9.72 115.8 NA NA NA 28.16 NA

Table 23: History of BSL 95-Growth Fund

ANALYTICAL TOOLS:

Return alone should not be considered as the basis of measurement of the performance of a mutual fund scheme, it should also include the risk taken by the fund manager because different funds will have different levels of risk attached to them. Risk associated with a fund, in a general, can be defined as variability or fluctuations in the returns generated by it. The higher the fluctuations in the returns of a fund during a given period, higher will be the risk associated with it. These fluctuations in the returns generated by a fund are resultant of two guiding forces. First, general market fluctuations, which affect all the securities, present in the market, called market risk or systematic risk and second, fluctuations due to specific securities present in the portfolio of the fund, called unsystematic risk. The Total Risk of a given fund is sum of these two and is measured in terms of standard deviation of returns of the fund. In order to determine the risk-adjusted returns of investment portfolios, several eminent authors have worked since 1960s to develop composite performance indices to evaluate a portfolio by comparing alternative portfolios within a particular risk class. But before that we need to understand all the components that are used to explain the ratios like Beta, Alpha, Treynor, Sharpe, and Jensen etc. the components are as follows:

Net Asset Value (NAV):

A mutual fund is a professionally-managed firm of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. In other words we can say that A Mutual Fund is a trust registered with the Securities and Exchange Board of India (SEBI), which pools up the money from individual / corporate investors and invests the same on behalf of the investors /unit holders, in equity shares, Government securities, Bonds, Call money markets etc., and distributes the profits. The value of each unit of the mutual fund, known as the net asset value (NAV), is mostly calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding. The value of all the securities in the portfolio in calculated daily. From this, all expenses are deducted and the resultant value divided by the number of units in the fund is the funds NAV. Total value of the fund No. of shares currently issued and outstanding

NAV =

 Factors affecting NAV:

Variation in investment portfolio:

Variation in the investment portfolio causes changes in the NAV of the fund, which in turn may affect the overall value of the fund. Since, same investment portfolios with different NAV gives same returns in percentage terms, therefore, the securities that we have in the portfolio play pivotal importance. Changing the portfolio or replacing any security with the existing security may change the overall NAV of the fund, which in turn may change the value of the entire fund.

Sale and repurchase of units:

Sale and repurchase of any unit that we have in our portfolio changes the overall NAV of the fund. For example, we have a portfolio in which the security A is priced at Rs 100. We sell this security and after one week when the price of the security becomes Rs 80 we buy it, keeping all other investments intact, then the NAV of the portfolio will come down, which in turn will result in better valuation for the fund. Therefore, sale and repurchase also affects the NAV of the fund.

Valuations of assets:
The value that the underlying asset has, whose portfolio the fund has managed or is managing, if the value of that asset changes, it can change the overall NAV of the fund.

Cost associated with the Fund:

The cost associated with the fund also affects the NAV of the fund. All the charges accumulated during the selling of a security are known as Sales charges. Funds with low expense ratios are always preferred as they decrease the overall cost of the security.

BETA :
It is a ratio that measures the market risk of securities or a fund. If the beta ratio exceeds one, the fund is more sensitive than funds in general to the fluctuations of the stock market. The beta may also be negative, which means that the value of the fund will, on average, move to the opposite direction than the general market development. Beta measures the sensitivity of rates of return on a fund to general market movements. It also measures the volatility of the fund, as compared to that of the overall market. The Market's beta is set at 1.00; a beta higher than 1.00 is considered to be more volatile than

the market, while a beta lower than 1.00 is considered to be less volatile. Beta measures the systematic risk and show how price of security respond to the market foresees. It is calculated by relating the return on security with return for market. = n XY ( x y) / n x (x) Where, X =index return, Y = fund return

Alpha:
It measures the stock unsystematic return and it is average return independent of market return. It is calculated by comparing the funds actual performance with the risk adjusted expected return. = Y-*X Where, X =index return, Y = fund return

Standard Deviation:
Standard deviation is a representation of the risk associated with a given security stocks, bonds, property, etc. or the risk of a portfolio of securities. Risk is an important factor in determining how to efficiently manage a portfolio of investments because it determines the variation in returns on the asset and/or portfolio and lives investors a mathematical basis for investment decisions. The overall concept of risk is that as it increases, the expected return on the asset will increase as a result of the risk premium earned higher return on an investment when said investment carries a higher level of risk. S.D is used to measure the variability of return i.e. the variation between the actual and expected return. = y/n

It is used to measure the variation in the individual return from the average expected return over a certain period. Standard deviation is used in the concept of risk of a portfolio of investment. Higher the Standard Deviation means a greater fluctuation in expected return.

SHARPE RATIO:
A Sharpe ratio developed by Nobel laureate William. F. Sharpe (1966) to measure risk adjusted performance. Sharpes performance index gives a single value to be used for the performance ranking of various funds of portfolios. Sharpes index measures the risk premium of the portfolio relative to the total amount of risk in the portfolio. This risk premium is the difference between the portfolios average rate of return and the riskless

rate of return. The standard deviation of the portfolio indicates the risk. The index assigns the highest values to assets that have risk-adjusted average rate of return. S = rP rf /p Where, S = Sharpe's Index p = The standard deviation of the portfolio. RP = Return of the portfolio. R f = Risk free rate of return. (*Risk free rate of return is taken as 7.73% p.a.) While a high and positive Sharpe Ratio shows a superior risk-adjusted performance of a fund, a low and negative Sharpe Ratio is an indication of un-favourable performance. If the Sharpe figure is positive, the risk taken has paid off, and if the figure is negative, the returns are lower than the risk-free rate.

TREYNOR RATIO:
Jack Treynor (1965) was the first researcher developing a composite measure of portfolio performance. To understand the Treynor index, an investor should know the concept of characteristic line. The funds performance is measured in relation to the market performance. The ideal funds return rises at a faster rate than the general market performance when the market is moving upwards and its rate of return declines slowly than the market return, in the decline. It measures portfolio risk with beta, and calculates portfolios market risk premium relative to its beta. This ratio rewards volatility because it shows risk adjusted returns per unit of market risk for that particular scheme. When the markets are more volatile, schemes with high Treynor ratio are highly affected and vice versa. A scheme with high Treynor ratio such as Equity scheme will enjoy a premium when the markets are bullish and will be affected negatively when the markets are bearish. On the other hand, scheme with low Treynor ratio such as Debt Fund will not be affected greatly, irrespective of the bullish or bearish run in the markets. Tn =rP rf /p Where Tn = Treynor's index RP = Return of the portfolio. R f = Risk free rate of return. p = beta coefficient of portfolio.

All risk-averse investors would like to maximize this value. While a high and positive Treynor Index shows a superior risk-adjusted performance of a fund, a low and negative Treynor Index is an indication of unfavorable performance. The trouble with both Sharpe and Treynor ratios for evaluating "risk-adjusted" returns is that they equate risk with short-term volatility. Therefore these measures may not be applicable in evaluating the relative merits of long-term investments.

JENSEN MEASURE:
The absolute risk adjusted return measure was developed by Michael Jensen and commonly known as Jensens measure. It is mentioned as a measure of absolute performance because a definite standard is set and against that the performance is measured. The standard is based on the managers predictive ability. Successfully prediction of security price would enable the manager to earn higher returns than the ordinary investor expects to earn in a given level of risk. Sharpe and Treynor index models provide measures for ranking the relative performance of various portfolios on a risk-adjusted basis according to Jensen equilibrium average return on a portfolio would be a benchmark. Equilibrium average return of the portfolio by the market with respect to systematic risk to portfolio should earn with the systematic return. Rp = + (rm - rf ) p Where, Rp= average return of the portfolio. rf = risk free return rm= average market return = A measure of systematic = Y-X If the alpha is positive, the portfolio has performed better and if alpha is negative it has not shown performance up to the benchmark, i.e. the market Index.

Performance Evaluation AXIS Equity- Growth Fund

X(nifty) 3.15 -8.90 1.87 26.45 9.72 X=32.3 1 (X) 9.92 79.21 3.49 699.60 94.47 (X) =886.69 Y(return) -13.74 47.48 22.78 40.22 22.34 Y =119.08 (Y) 188.78 2254.35 518.92 1617.64 499.07 (Y) =5078.76 XY -43.28 -372.57 42.59 1163.81 217.14 XY =1007.69 y -37.55 23.67 -1.03 16.41 -1.47 0 y 1410 560.26 1.06 269.28 2.16 y=2242.7 6

Table 24: Performance Evaluation Of Axis Equity Growth Fund X =X / N=>32.31/5= >6.46 Y= Y / N=>119.08/5=>23.81 y=Y-Y X = Index return Y = Fund return N= No. of years

1. BETA : = n XY ( x y) / n x (x) = 1190.98/3389.55 = 0.35

2. Alpha: = Y-X = 23.81- 0.35*6.46 =21.55

3. Standard Deviation: = y/n

= 2242.76/5 = 21.17 4. Sharpe's index: Sp = RP Rf /p rf = 7.73%, p = 21.17, RP= 23.81 Sp= 23.81-7.73/21.17 Sp =0.75

5. TREYNOR: Tn = rP rf /p = 0.35, rf= 7.73, rP = 23.81 Tn= 23.81-7.73/0.35 Tn = 45.94

6. JENSEN: Rp = + (rm - rf ) = 0.35, rf= 7.73, = 21.55, rm = 6.46 Rp= 21.55 - 0.44 Rp = 21.10

Performance Evaluation OF HDFC Equity Growth Fund

X(nifty) 3.15 -8.90 1.87 26.45 9.72 X=32.3 1

(X) 9.92 79.21 3.49 699.60 94.47 (X) =886.69

Y(return) -15.63 53.61 35.86 62.70 27.53 Y =164.07

(Y) 244.29 2874.03 1285.93 3931.29 757.90 (Y) =9093.44

XY -49.23 -477.12 67.05 1658.41 267.59 XY =1466.70

y -48.44 20.8 3.05 29.89 -5.28 0

y 2346.43 432.64 9.30 893.41 27.87 y=3709.6 5

Table 25: Performance Evaluation Of HDFC Equity Growth Fund X =X / N=>32.31/5= >6.46 Y= Y / N=>164.07/5=>32.81 y=Y-Y X = Index return Y = Fund return N= No. of years

1. BETA : = n XY ( x y) / n x (x) = 2032.4/3389.55=> 0.59

2. Alpha: = Y-X = 32.81- 0.59*6.46=>29

3. Standard Deviation: = y/n = 3709.65/5 = 27.23 4. Sharpe's index: Sp = RP Rf /p rf = 7.73, p = 27.23, RP= 32.81 Sp= 32.81-7.73/27.23 Sp =0.92

5. TREYNOR: Tn = rP rf /p = 0.59, rf= 7.73, rP = 32.81 Tn= 32.81-7.73/0.59 Tn = 42.50

6. JENSEN: Rp = + (rm - rf ) = 0.59, rf= 7.73, = 29, rm = 6.46 Rp= 29 - 0.74 Rp = 28.26

Performance Evaluation Of Birla Sun Life 95- Growth Fund

X(nifty) 3.15 -8.90 1.87 26.45 X=22.5 7

(X) 9.92 79.21 3.49 699.60 (X) =792.22

Y(return) -17.90 83.60 29.03 39.97 Y =134.7

(Y) 320.41 6988.96 842.74 1597.60 (Y) =9749.71

XY -56..38 -744.04 54.28 1057.20 XY =310.98

y -51.57 49.93 -4.64 6.3 0

y 2659.46 2493 21.52 39.69 y=5213.6 7

Table 26: Performance Evaluation Of BSL 95-Growth Fund

X =X / N=>22.57/4= >5.64 Y= Y / N=>134.7/4=>33.67 y=Y-Y X = Index return Y = Fund return N= No. of years

1. BETA : = n XY ( x y) / n x (x) = -1796.25/2659.48 = - 0.67

2. Alpha: = Y-X = 33.67-(-0.67*5.64)=>33.67+3.77=>37.44

3. Standard Deviation: = y/n = 5213.67/4 = 36.10 4. Sharpe's index: Sp = RP Rf /p rf = 7.73, p = 36.10, RP= 33.67 Sp = 33.67-7.73/36.10 Sp = 0.71

5. TREYNOR: Tn = rP rf /p = -0.67, rf= 7.73, rP = 33.67 Tn= 33.67-7.73/-0.67 Tn = -38.71

6. JENSEN: Rp = + (rm - rf ) = -0.67, rf= 7.73, =37.44, rm = 5.64 Rp = 37.44+1.40 Rp = 38.84

Comparison Of AXIS, HDFC, Birla Sun Life Equity Growth Mutual Funds
Analysis Of Mutual Fund On The Bases Of Treynor's Index:

MUTUAL FUND Axis Equity Growth Fund HDFC Equity Growth Fund Birla Sun Life 95- Growth Fund

TREYNOR'S INDEX 45.94 42.50 -38.71

Table 27: Treynors index of Axis, HDFC, BSL Mutual Funds

Treynor,s Index
60 40 20 0 -20 -40 -60 Axis Equity Growth Fund HDFC Equity Growth Fund Birla Sun Life 95- Growth Fund -38.71 Treynor,s Index 45.94 42.5

Chart 1: Treynor's Index Analysis

INTERPRETATION: This shows the risk adjusted return. In this case Axis Equity Growth Fund have the maximum i.e. 45.94 index value in comparison to the other two i.e. HDFC Equity Growth Fund and Birla Sun Life 95- Growth fund. So we can say that the Axis Equity Growth fund is the best fund as it provides the maximum risk premium in comparison to the other two funds.

Analysis of Fund On The Bases Of Sharpe's Index:

MUTUAL FUND Axis Equity Growth Fund HDFC Equity Growth Fund Birla Sun Life 95- Growth Fund

SHARPE'S INDEX 0.75 0.92 0.71

Table 28: Sharpes index of Axis, HDFC, BSL Mutual Funds

1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0

Sharpe's Index
0.92 0.75 0.71 Sharpe,s Index

Axis Equity Growth Fund

HDFC Equity Growth Fund

Birla Sun Life 95- Growth Fund

Chart 2: Sharpe's Index Analysis

INTERPRETATION: Sharpe shows the risk adjusted return. Higher the Sharpe Index better the fund. In this case HDFC Equity Growth Fund has the maximum value i.e.0.92 in comparison to other fund i.e. Axis Equity Growth Fund and Birla Sun Life 95- Growth Fund. So we can say that the HDFC Equity Growth Fund is the best fund amongst the three funds.

Analysis Of Fund On The Bases Of Jensen's Index:

MUTUAL FUND Axis Equity Growth Fund HDFC Equity Growth Fund Birla Sun Life 95- Growth Fund

JENSEN'S INDEX 21.1 28.26 38.84

Table 29: Jensens Index Of Axis, HDFC, BSL Mutual Funds

Jensen's Index
45 40 35 30 25 20 15 10 5 0 38.84 28.26 21.1 Jensen,s Index

Axis Equity Growth Fund

HDFC Equity Growth Fund

Birla Sun Life 95- Growth Fund

Chart 3: Jensen's Index Analysis

INTERPRETATION: This shows the risk adjusted return. In this case Birla Sun Life 95- Growth Fund have the maximum i.e. 38.84 index value in comparison to the other two i.e. HDFC Equity Growth Fund and Axis Equity Growth Fund. So, we can say that the Birla Sun Life 95- Growth Fund is the best fund as it provides the maximum risk premium in comparison to the other two funds.

TREND ANALYSIS:
To apply the statistical tool in this project TREND ANALYSIS is the most effective tool which is applied here when estimates of future conditions are made on a systematic basis, the process is referred as forecasting and the figure or statement obtained is known as forecast. In this world of uncertainness, economic decision rest upon a forecast of future condition. Forecasting is concerned with mainly two tasks: 1. To determination of best basis available for formation of intelligent managerial expectations, 2. Handling of uncertainty about future.

UTILITY OF TREND ANALYSIS:

To study the past behaviour of data To forecast the future behaviour Estimation of Trade Cycles Comparison with other Time Series Study of present variations

Trend is usually of two types:

1. Linear trend:
y = a + bx

2. Parabolic trend:
y= a + bx + cx

TREND ANALYSIS OF AXIS MUTUAL FUND NAV:

YEAR NAV (Y) Deviations from (07) (X) -2 -1 0 1 2 X=0 XY x2

2005 2006 2007 2008 2009 N=5

20.80 26.15 32.56 48.02 41.42 Y= 168.95

-41.6 -26.15 0 48.02 82.84 XY=63.11

4 1 0 1 4 x2 =10

Table 30: Trend Analysis Of Axis Mutual Fund NAV

The equation of the straight line trend is Y= a + bx Since X=0, a = Y/ N, b = XY/ x2 Substituting values, we get a = 168.95/5 = 33.79; b = 63.11/10 = 6.31 Thus the straight line trend is Y= 33.79 + 6.31(X), X unit = 1 Year

YEAR 2005 2006 2007 2008 2009 2010 2011

EXPECTED 21.17 27.48 33.79 40.10 46.41 52.72 59.03

ACTUAL 20.80 26.15 32.56 48.02 41.42

Table 31: Expected and Actual NAV Of Axis Mutual Fund

70 60 50 40 Expected 30 20 10 0 2005 2006 2007 2008 2009 2010 2011 Actual

Chart 4: Trend of AXIS Mutual Fund NAV

INTERPRETATION: This chart shows that actual values are according to the expected values. There are minor differences in between these values. In 2005 the expected value was 21.17and actual value was 20.80, in 2009 the expected value was 46.41 and actual value was 41.42. So, we can say that Axis Mutual Fund NAV trends according to their standards.

TREND ANALYSIS OF HDFC MUTUAL FUND NAV:

YEAR NAV(Y) Deviations from (07) (X) -2 -1 0 1 2 X=0 XY x2

2005 2006 2007 2008 2009 N=5

65.77 107.01 145.39 223.32 188.42 Y= 729.91

-131.54 -107.01 0 223.32 376.84 XY=361.61

4 1 0 1 4 x2 =10

Table 32: Trend analysis of HDFC Mutual Fund NAV

The equation of the straight line trend is Y= a + bx Since X=0, a = Y/ N, b = XY/ x2 Substituting values, we get a = 729.91/5 = 145.98; b = 361.61/10 = 36.16 Thus the straight line trend is Y= 145.98 + 36.16(X), X unit = 1 Year

YEAR 2005 2006 2007 2008 2009 2010 2011

EXPECTED 73.66 109.82 145.98 182.14 218.30 254.46 290.62

ACTUAL 65.77 107.01 145.39 223.32 188.42

Table 33: Expected and Actual NAV of HDFC Mutual Fund

350 300 250 200 150 100 50 0 2005 2006 2007 2008 2009 2010 2011 Expected Actual

Chart 5: Trend of HDFC Mutual Fund NAV

INTERPRETATION: This chart shows that actual values are according to the expected values. There are minor differences in between these values. In 2005 the expected value was 73.66 and actual value was 65.77, in 2009 the expected value was 218.30 and actual value was 188.42. So, we can say that HDFC Mutual Fund NAV trends according to their standards.

TREND ANALYSIS OF BSL MUTUAL FUND NAV:

YEAR NAV (Y) Deviations from (07) (X) -2 -1 0 1 2 X=0 XY x2

2005 2006 2007 2008 2009 N=5

13.99 19.38 25.27 46.40 38.09 Y= 143.13

-27.98 -19.38 0 46.40 76.18 XY=75.22

4 1 0 1 4 x2 =10

Table 34: Trend Analysis Of BSL Mutual Fund NAV

The equation of the straight line trend is Y= a + bx Since X=0, a = Y/ N, b = XY/ x2 Substituting values, we get a = 143.13/5 = 28.62; b = 75.22/10 = 7.52 Thus the straight line trend is Y= 28.62 + 7.52(X), X unit = 1 Year

YEAR 2005 2006 2007 2008 2009 2010 2011

EXPECTED 13.58 21.10 28.62 36.14 43.66 51.18 58.70

ACTUAL 13.99 19.38 25.27 46.40 38.09

Table 35: Expected and Actual NAV of BSL Mutual Fund

70 60 50 40 30 20 10 0 2005 2006 2007 2008 2009 2010 2011 Expected Actual

Chart 6: Trend of BSL Mutual Fund NAV

INTERPRETATION: This chart shows that actual values are according to the expected values. There are minor differences in between these values. In 2005 the expected value was 13.58 and actual value was 13.99, in 2009 the expected value was 43.66 and actual value was 38.09. So, we can say that Birla Sun Life Mutual Fund NAV trends according to their standards.

ANALYSIS OF INVESTORS PERCEPTION TOWARDS INVESTMENT IN AXIS MUTUAL FUND (1).What is your Age?

Age Group (in years)

20-30 30-40 40-50 Above 50

No. Of Respondents
62 23 10 05

Table 36: No. if investors at different Age Group

Age
20-30 10% 30-40 5% 40-50 Above 50

23% 62%

Chart 7: Analysis according to Age

Interpretation:
As per the above pie chart the 62% of respondents who are below 30 years, the persons within the age group of 30-40 years only 23% and the persons between the age group 40-50 are 10% of respondents. The persons having the age equal to or above 50 years, only 05% of respondents.

(2).What is your Occupation?

Occupation
Professional Salaried Business Retired Others

No. Of Respondents
08 30 48 03 11

Table 37: No. of investors having different Occupation

60 50 40 30 20 10 0 8 3 11 30 48

OCCUPATION

Chart 8: Analysis according to Occupation

Interpretation:
As per the above Bar chart from Occupation group out of 100 investors, the 48% of respondents are Business-Man, 30% are Employees or Salaried-Man, 08% are Professional, 03% are Retired person and 11% are in other.

(3).What is your monthly family income approximately?

Income (in Rs.)

Up to Rs.10,000 Rs.10,001 to 15000 Rs.15,001 to 20,000 Rs.20,001 to 30,000 Rs.30,001 and above

No. Of Respondents
05 28 42 15 10

Table 38: No. of investors at different Income Level

Income
Up to Rs.10,000 15% 10% 5% 28% Rs.10,001 to 15000 Rs. 15,001 to 20,000 Rs. 20,001 to 30,000 42% Rs. 30,001 and above

Chart 9: Analysis according to Income

Interpretation:
It is clear from the above pie chart that Income Group of the investors of kaithal, out of 100 investors, 42% investors that is the maximum investors are in the monthly income group Rs.15,001 to Rs. 20,000, Second one i.e. 28% investors are in the monthly income group of Rs.10,001 to Rs. 15,000 and the minimum investors i.e. 05% are in the monthly income group of below Rs. 10,000.

(4).Are you aware about AXIS MUTUAL FUND and their operations? Yes No

No. Of Respondents
Yes No 78 22

Awareness Of Axis Mutual Fund

NO 22% YES 78% YES NO

Table 39: Investors awareness towards Axis MF

Chart 10: Analysis awareness of Axis MF

If yes, how did you know about Axis Mutual Fund?

Source
Advertisement Internet Banks Financial Advisors Other

No. Of Respondents
09 05 25 38 01

Source Of Awareness
1% 12% 6% Advertisement Internet Banks Financial Advisors Other

49% 32%

Table 40: No. of investors from where they know about Axis MF

Chart 11: Analysis source of awareness

Interpretation:
From the above chart it can be inferred that the Financial Advisor is the most important source of information about Axis Mutual Fund. Out of 100 Respondents, 49% know about Mutual fund Through Financial Advisor, 32% through Bank, 12% through Advertisement, 06% and 01% from internet and other sources.

(5). Have you invested in AXIS MUTUAL FUND? Yes No

No. Of Respondents
Yes No 70 30

Invested In Axis Mutual Fund NO

30% YES 70% YES NO

Table 41: Investment decision of investors .

Chart 12: Analysis Investment Decision Of Investors

If NOT invested in Axis Mutual Fund, you do so because?

Reasons
Lack of knowledge about Axis mutual fund Axis MF gives less return compared to the others. Enjoys investing in other options No trust over the fund managers Others

No. Of Respondents
18
10% 3% 17%

Reasons
Lack of knowledge about Axis mutual fund Axis MF gives less return compared to the others. Enjoys investing in other options No trust over the fund managers Others

03 05 01 03

60% 10%

Table 42: Investors who not invested in Axis MF

Chart 13: Analysis who not invested in Axis MF

Interpretation:
As per the above table and pie chart the 70% of respondents is to be invested in axis mutual fund and 30 % out of 100 total respondents say they are not investing their money in axis mutual fund. The main reason behind it they have lack of knowledge (60%) about Axis mutual fund except this 17% investors enjoys investing in other options. And only 03% respondents says they have no trust over the fund managers.

(6). If you invested in AXIS MUTUAL FUND what is your investment objective?

Investment Objective
Safety Good Return Tax Benefit Liquidity Others

No. Of Respondents
15 42 08 03 02

Table 43: Investment objective of Axis MF investor

Investment Objective
4% 3% 12% 21% Safety Good Return Tax Benefit Liquidity Others 60%

Chart 14: Analysis investment objective of Axis MF

Interpretation:
It can be seen from the following graph that the main investment objective of most of the investors is good return (60%), 21% and 12% of respondents has to invest their money in axis mutual fund for safety and tax benefit. Only 03% of respondents has the others objective towards investing in axis mutual fund.

(7).What is your Average investment period in AXISMF?

Avg. Investment Period

Less than 6 months. 6 to 12 months 12 months to 2 year. More than 2 year.

No. Of Respondents
18 35 10 07

Table 44: Avg. investment period of Axis MF Investor

Avg. Investment Period

14% 10% 26% Less than 6 months. 6 to 12 months 12 months to 2 year. More than 2 year. 50%

Chart 15: Analysis of avg. investment period of Axis MF Investor

Interpretation:
The above graph reflects the average investment period for all the 70 respondents. From the study it can be concluded that majority of 35 respondents (50%) invest in axis mutual fund from 6 to 12 months. It is the most chosen option among all the other options because of the current market condition people are not interested in investing their money for short time like less than 6 months because return will be very less in short time period and only18 respondents (26%) invest in axis mutual fund for less than 6 months. Investment horizon of 10 and 07 respondents is 12 months to 2 year and more than 2 year.

(8).What is your risk preference?

Risk Preference
High risk and high return Moderate risk and Moderate return Low risk and low return

No. Of Respondents
20 42 08

Table 45: Risk prefer by Axis MF investors

Risk Preference 45 40 35 30 25 20 15 10 5 0

42 20 8 High risk and high Moderate risk return and Moderate return Low risk and low return

Chart 16: Analysis of risk prefer by Axis MF investor

Interpretation:
The following Bar chart explains that majority of 42 investors (60%) were ready to take Moderate level of risk by investing in axis mutual fund and also rest of them 20 respondents (29%) go for High Risk and High Return category. Only 08 respondents (11%) opt for Low risk and low return category that again proved that it is a myth that Indian Investors are more risk averse when it comes to investment in Mutual Funds.

(9).How much return do you expect from your Investment?

Expected Return
Up to 15% 15%-25% 25%-35% More than 35%

No. Of Respondents
20 30 12 08

Table 46: Return expected by various investors

Expected Return
Up to 15% 25%-35% 11% 29% 17% 15%-25% More than 35%

43%

Chart 17: Analysis of expected return of Axis MF investor

Interpretation:
If any person invested their money in axis mutual fund they obviously look for good return but if they want to earn high return than high risk is also associated with it as above graph suggests that most of the respondents 43% choose the return between 15% to 25% because they knows that the current market condition its good return they can get and very few respondents 11% choose more than 35% return which is actually very difficult to get.

(10). While investing in AXISMF which scheme (On The Basis Of Structure) do you prefer?

Scheme Name
Open Ended Scheme Closed Ended Scheme

No. Of Respondents
58 12

Table 47: Scheme (By Structure) prefer by investors

Schemes
Open Ended Scheme Closed Ended Scheme Closed Ended Scheme 17%

Open Ended Scheme 83%

Chart 18: Analysis of scheme (By Structure) prefer by Axis MF Investor

Interpretation:
Above graph shows that when it comes to scheme preferences majority of the investors prefer open ended scheme 83%. In open ended schemes they can enter at any time or they can exit at any time. The Ratio of close ended schemes is very low. It is only 17%.

(11). When you invest in AXISMF which investment scheme will you prefer? Investment Scheme
Equity Fund Debt Fund Balanced Fund Fixed Maturity Plan (FMPs) Others

No. Of Respondents
40 03 15 07 05

Table 48: Scheme (By Investment) prefer by investors

Investment Scheme
7% 10% Debt Fund 22% 4% Fixed Maturity Plan (FMPs) 57% Balanced Fund Equity Fund

Chart 19: Analysis of scheme (By Investment) prefer by Axis MF investor

Interpretation:
When it comes to investment scheme preferences majority of retail investors prefer Equity Fund 57%, followed by Balanced Schemes 22% with 04% retail investor preferring debt fund and 10% fixed income instruments like Fixed Maturity Plans (FMPs). It shows that there is a huge potential for debt instruments in the market which is unearthed by retail investors due to its complexity, low awareness etc.

(12).Do you get influenced by the returns given by a fund or by the current NAV of a fund? Influenced By
By NAV By Returns By Both

No. Of Respondents
20 38 12

Table 49: Table of investors influenced behaviour

40 35 30 25 20 20 15 10 5 0 By NAV

38

Influenced By

12

By Returns

By Both

Chart 20: Analysis of investor influenced behaviour of Axis MF

Interpretation:
Above Bar graph shows that most investor of axis mutual fund is to be influenced by it returns 54.3% and 28.5% of investor is to be influenced only by the NAV. The 17.2% of investor is to be influenced by both (By NAV and By Returns).

(13).From where do you purchase AXISMF?

Source Of Purchase
Directly from the AMCs From Brokers From Banks Other sources

No. Of Respondents
02 48 12 08

Table 50: From where investors purchase Axis MF

Source Of Purchase
11% 17% 3% Directly from the AMCs From Brokers From Banks 69% Other sources

Chart 21: Analysis of purchase decision of Axis MF investor

Interpretation:
From the above Pie Chart it is clear that the Brokers play a very important role in the distribution channel of AMCS. Most of the respondents (69%) buys their investment products from brokers. This shows the importance of brokers and they also want to earn money so they gave good service to their investors and in the return they gets good business. Only few of the investors knows that they can buy directly for AMCS so they can save their 03%.

(14).From the following features of AXISMF that attracts you most? Features
Diversification Professional management Reduction in risk and transaction cost Helps in achieving long term goals

No. Of Respondents 20 25 10 15

Table 51: No. of investor who liked the different feature of Axis MF

Features
Diversification

21%

29%

Professional management Reduction in risk and transaction cost

14%

36%

Helps in achieving long term goals

Chart 22: Analysis of Axis MF features

Interpretation:
Above graph reflects that respondents need diversification because through this they can reduce their risk and enjoy investing in other options and the 20 respondents (29%) choose this feature. Out of 70 respondents 25 has to like the feature Professional Management of Axis Mutual fund. The other features axis mutual fund has also attract the investors.

(15).How satisfied you are with your experience of investing in Axis Mutual Fund?

Satisfaction Level
Highly Satisfied Considerably Satisfied Reasonably Satisfied Unsatisfied Highly Unsatisfied

No. Of Respondents
13 28 22 05 02

Table 52: Satisfaction level of Axis MF investors

Satisfaction Level
7% 3% 19%

Highly Satisfied 31% Considerably Satisfied Reasonably Satisfied 40% Unsatisfied Highly Unsatisfied

Chart 23: Analysis of satisfaction level of Axis MF investor

Interpretation:
Form above chart it can be inferred that up to this stage majority of respondents 40% are Considerably Satisfied when they were asked about overall experience with Axis Mutual Funds including funds, returns, services etc., but it remains to be seen that which category leads with the completion of survey because second best categories with preferred by investors is Reasonably Satisfied which means that there is more to do on Axis Mutual Fund behalf for Customer Satisfaction.

Chapter-6 FINDINGS

FINDINGS

Regarding Comparative Analysis Of Mutual Funds:

PORTFOLIO:
AXIS Equity Growth Mutual Fund has invest major part of portfolio in 13.70% sector. HDFC Equity Growth Mutual Fund has invest major part of portfolio in Banking & Finance(22.15%) and Oil & Gas sector(15.32%). Birla Sun Life 95-Growth Fund has invest major part of portfolio in Banking / Finance sector (13.70%).

RETURN:

Tools/Companies

AXIS Mutual Fund 0.35 21.17 21.55 0.75 45.94 21.10

HDFC Mutual Fund 0.59 27.23 29 0.92 42.50 28.26

Birla Sun Life Mutual Fund -0.67 36.10 37.44 0.71 -38.71 38.84

Beta SD Alpha Sharpes Index Treynors Index Jensens Index

Above table shows that the HDFC MF have grater Beta as compare other fund. AXIS and HDFC MF has more Sharpes and Treynors performance index as compare Birla Sun Life Mutual Fund. So, I can say that the AXIS MF and HDFC MF is better than Birla Sun Life MF.

 Regarding Investor Perception Of Axis Mutual Fund:

The study done was a tool to analyze the present setup and to know the investors perception regarding investment in Axis Mutual Fund. The study proved fruitful and many facts came to the light. The following were the findings of the study: In Kaithal City the 62% of respondents who are below 30 years, the persons within the age group of 30-40 years only 23% and the persons between the age group 40-50 are 10% of respondents. The persons having the age equal to or above 50 years, only 05% of respondents. In Occupation group most of the Investors were Business man, the second most Investors were Employees and the least were the retired person. In family Income group, between Rs. 15,001- 20,000 were more in numbers, the second most were in the Income group of 10,001-15000 and the least were in the group of below Rs. 10,000. Out of 100 Respondents, 49% know about Mutual fund Through Financial Advisor, 32% through Bank, 12% through Advertisement, 06% and 01% from internet and other sources. Among 100 Respondents only 70% had invested in Axis Mutual Fund and 30% did not have invested in Axis Mutual fund. Out of 100 total 30 respondents say they are not investing their money in axis mutual fund. The main reason behind it they have lack of knowledge (60%) about Axis mutual fund except this 17% investors enjoys investing in other options. And only 03% respondents says they have no trust over the fund managers. The main investment objective of most of the investors is good return (60%), 21% and 12% of respondents has to invest their money in axis mutual fund for safety and tax benefit. Only 03% of respondents has the others objective towards investing in axis mutual fund. Regarding the average investment period from the 70 respondents 35

respondents (50%) invest in axis mutual fund from 6 to 12 months and only18 respondents (26%) invest in axis mutual fund for less than 6 months. Investment horizon of 10 and 07 respondents is 12 months to 2 year and more than 2 year.

 Out of 70, 42 investors (60%) were ready to take Moderate level of risk by investing in axis mutual fund and also rest of them 20 respondents (29%) go for High Risk and High Return category. Only 08 respondents (11%) opt for Low risk and low return From the 70 respondents 30 respondents choose their expected return between15% to 25%, 20 respondents choose their expected return up to 15%, 12 respondents choose their expected return between 25% to 35% and 08 respondents choose more than 35% return. The most of investors prefer open ended scheme (83%) and the ratio of close ended schemes is very low. It is only 17%. When it comes to investment scheme preferences majority of retail investors prefer Equity Fund 57%, followed by Balanced Schemes 22% with 04% retail investor preferring debt fund and 10% fixed income instruments like Fixed Maturity Plans (FMPs). The most investor of axis mutual fund is to be influenced by it returns 54.3% and 28.5% of investor is to be influenced only by the NAV. The 17.2% of investor is to be influenced by both (By NAV and By Returns). From this study it is find that brokers play a very important role in the distribution channel of AMCS. The 69% respondents buys their investment products from brokers. Only the 03% investors buys their investment products from AMCS. Out of 70, 20 respondents (29%) choose the feature of diversification and 25 respondents (36%) has to like the feature Professional Management of Axis Mutual fund. The other features of axis mutual fund has also attract the 35% investor. Form 70 respondents the majority of 28 respondents (40%) are Considerably Satisfied, 22 respondents (31%) are Reasonably Satisfied, 13 respondents are highly satisfied and 07 respondents are unsatisfied and highly unsatisfied when they were asked about overall experience with Axis Mutual Fund.

Chapter-7 CONCLUSION

CONCLUSION
The future of primary market is growing at a very high pace. Taking this thing into consideration, there are lots of opportunities for the Axis Bank Pvt. Ltd. to tap the golden opportunities from the Indian market. Axis bank has emerged a very strong player in the field of distribution of financial product within a short period of one year time in Northern India and is giving stiff competition to all the players in the market. It is expanding its area of business, if the progress of AXIS MF goes in the same way, than I can say that there is bright future for AXIS MF in coming years. They have much potential to expand their distribution network in northern India. The company is currently following huge investment and growth strategies. Apart from the market growth rate the distribution industry doesnt seem so attractive. Hence the firm should be selective using growth strategies. This is not to undermine the bright future of AXIS MF, just a check to be a cautious.

Running a successful Mutual Fund requires complete understanding of the peculiarities of the Indian Stock Market and also the psyche of the small investors. This study has made an attempt to understand the financial behaviour of Mutual Fund investors in connection with the preferences of Brand (AMC), Products, Channels etc. I observed that many of people have fear of Mutual Fund. They think their money will not be secure in Mutual Fund. They need the knowledge of Mutual Fund and its related terms. Many of people do not have invested in mutual fund due to lack of awareness although they have money to invest. People only invest in those Companies where they have faith or they are well known with them. Distribution channels are also important for the investment in mutual fund. Financial Advisors are the most preferred channel for the investment in mutual fund. They can change investors mind from one investment option to others.
There is little awareness about mutual fund in India; people have accepted it as a one of the major investment avenue. Mutual funds will become one of the sought after investment avenues. As far as the other investment products marketed by AXIS MF are concerned, they have a ready market. The only thing, which it needs to focus on, is that they should have a strong network so that prompt services and availability of forms is made available to the investor at a short notice, and if it keeps the traditional base for marketing in India, which is a price sensitive market, we can say that AXIS MF has a great future ahead.

Chapter-8 SUGGESTIONS & RECOMMENDATION

SUGGESTIONS & RECOMMENDATIONS

Instead of going with the investment in the stock market directly they should go with the mutual fund as in this case the level of risk is less. Investor should analysis the scheme before investing in fund, like Sharpe, Treynor, Jensen. In the comparison of all three schemes the Axis MF scheme is the best scheme as in the case Sharpe Index & Treynor Index is good. In BSL MF scheme they have mainly invest in banking sector (13.7%). So they should go for proper portfolio diversification. Fund manager can invest in Real estate, power sector because from the last 2-3 years these sectors are in boom and giving very good return. Investor should read offer document before investing in to mutual fund. Instead of investing into the close ended mutual fund, money should invest into open ended mutual fund as in case there is no lock in period. The investor should evaluate not only the returns on the scheme but also the NAV fluctuations. The most vital problem spotted is of ignorance. Investors should be made aware of the benefits. Nobody will invest until and unless he is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing. Mutual Fund Company needs to give the training of the Individual Financial Advisors about the Fund/Scheme and its objective, because they are the main source to influence the investors. Younger people aged under 40 will be a key new customer group into the future, so making greater efforts with younger customers who show some interest in investing should pay off.

*BIBLIOGRAPHY*

BIBLIOGRAPHY
Books:
Gupta S.P., Statistical Methods-Sultan chand publications, 30th edition (Page 378-418). Tata Mcgraw Hill- Schaums statistics outline- (Page 152- 155, 175-185). Fisher & Jordan: security analysis & investment management- (Page 321-338). Pandian Punitawathy : Security Analysis & portfolio management ( Page 145165, 180-186). Beri G.C.- Marketing Research 3rd edition- (Page 94, 98-101). Kothari C.R.- Business Research Methodology (Page 138-146). Pandey I.M.-Financial Management by Vikas Publishing House- (Page 6.23-6.57). Srivastva Management of Indian Financial Institutions- Himalya Publishing House 6th edition (Page 272-285, 313 to 335).

Magazine & Journals/ Newspaper:

Economic & political weekly April-2009 Article by V.S. Sharma- (Page 23-25). Indian journal of commerce-Jun, 2010 MBA review-Sep,2009 Journal of finance-Feb,2010 Facts for you-Jan,2010 The Management Accountant - April 2010 Southern Economist - December 15, 2009 SEBI Bulletin July, 2009 Charter financial analysis-Jan, 2010 Journal of finance-Dec, 2009 ICFAI reader-July2008, Feb.2009 Business world-May2009 Annual Report Of Axis Bank Ltd. 2010

 Websites:
www.mutualfundsindia.com www.amfiindia.com www.valueresearchonline.com www.bseindia.com www.nseindia.com www.crisil.com www.moneycontrol.com www.crisilratings.com www.axismf.com www.hdfcmf.com www.bslmf.com

*ANNEXURE *

QUESTIONNAIRE
I am doing MBA at MM Institute Of Management, MMUMULLANA (AMBALA) and this is to acknowledge that the following survey is purely for academic purpose. My project topic is about knowing the INVESTORS PERCEPTION TOWARDS INVESTMENT IN AXIS MUTUAL FUND. The identity of the respondent will be kept confidential. And it does not carry any commercial value.
Name: ..... (1).What is your Age? Pl tick (). A. 20-30 B. 30-40 C. 40-50 D. Above 50 Phone: .....

(2).What is your Occupation? Pl tick () A. Professional D. Retired B. Salaried E. Others C. Business

(3).What is your monthly family income approximately? Pl tick (). A. Up to Rs.10,000 C. Rs. 15,001 to 20,000 E. Rs. 30,001 and above (4).Are you aware about AXIS MUTUAL FUND and their operations? Yes No B. Rs.10,001 to 15000 D. Rs. 20,001 to 30,000

If yes, how did you know about Axis Mutual Fund? Pl tick (). A. Advertisement C. Banks E. Other B. Internet D. Financial Advisors

(5). Have you invested in AXIS MUTUAL FUND? Pl tick (). Yes No

If NOT invested in Axis Mutual Fund, you do so because Pl. tick (). A. Lack of knowledge about Axis mutual fund B. Axis MF gives less return compared to the others. C. Enjoys investing in other options D. No trust over the fund managers E. Others

(6). If you invested in AXIS MUTUAL FUND what is your investment objective ? Pl. tick () A. Safety D. Liquidity B. Good Return E. Other C. Tax Benefit

(7).What is your Average investment period in AXISMF? Pl. tick (). A. Less than 6 months. C. 12 months to 2 year. B. 6 to 12 months. D. More than 2 year.

(8).What is your risk preference? Pl. tick (). A. High risk and high return C. Low risk and low return (9).How much return do you expect from your Investment? Pl. tick (). A. Up to 15% C. 25%-35% B. 15%-25% D. More than 35% B. Moderate risk and Moderate return

(10).While investing in AXISMF (On The Basis Of Structure) which scheme do you prefer? Pl tick (). A. Open Ended Scheme B. Closed Ended Scheme

(11).When you invest in AXISMF which investment scheme will you prefer? Pl tick (). A. Equity Fund B. Debt Fund C. Balanced Fund

D. Fixed Maturity Plan (FMPs)

E. Others

(12).Do you get influenced by the returns given by a fund or by the current NAV of a fund? Pl. tick (). A. By NAV B. By Returns C. By Both

(13).From where do you purchase AXISMF? Pl tick (). A. Directly from the AMCs C. From Banks B. From Brokers D. Other sources

(14).Please tick () any one from the following features of AXISMF that attracts you most? A. Diversification B. Professional management C. Reduction in risk and transaction cost D. Helps in achieving long term goals
(15).How satisfied you are with your experience of investing in Axis Mutual

Fund? Pl. tick (). A. Highly Satisfied D. Unsatisfied B. Considerably Satisfied E. Highly Unsatisfied C. Reasonably Satisfied

THANK YOU