1.Name of Company: “PENINSULAR CAPITAL MARKTE LID.” 2.Registered Office: S.T.Reddiar & Sons Building, Veekshanam Road, Ernakulam, Cochin-682035 3. Bord of Director: Mr. T.S.Anantharaman Mr. Akshay Agarawal 4. Bankers: ICICI Bank HDFC Bank UTI Bank 5. Auditor: - The Chairman - The Managing Director


NAME Mr. HARIHARAN Mr. Joseph Lukose Smt. Girija Devi Mr. Sojan Chacko Mr. V.P Menon Mr. SanalKumar N Mr. Girish Kumar K.S Mr. Deepak Dharmadev Mr. Harishankar DESIGNATION COMPANY PRESIDENT Manager – Administration Manager – Operations Manager – Finance & Delivery Manager – Marketing Manager – Public Relation Training Manager - Commodities Manager - Systems Asst. Manager - DP

Our mission is to offer clients the best combination of advanced trading software with high technology , low costs and low margin requirements, efficient and secure back office fund administration, and a broad array of products with high profit potential.


Asst. trading. we do not compromise on basic values like Honesty. Branch Manager The incumbent should at least be a Graduate and have minimum 3 to 5 years experience with finance intermediary company and also willing to work any where in India.finance & accounts and marketing. 3. Integrity and Truthfulness and is deeply rooted in our philosophy that balances personal perspectives and organizational growth.CAREERS: We are rapidly expanding our business horizon and look forward for young and energetic candidate willing to pursue their career in financial service sector. Marketing Executives Fresh MBA or Graduates with 1 to 2 years experience in marketing financial products / services . Dealer (Equity and Commodity ) The incumbent should at least be a Graduate and also cleared NCFM certification . 2. Marketing. Depository. Surveillance and Trading. NCFM qualified persons are preferred.Minimum 1 to 3 years experience with a share broking company . 1. Manager The incumbent should at least be a Graduate and have minimum 2 to 3 years experience with finance intermediary company and also willing to work any where in India. Back Office. 4 . We have openings in various departments viz. We provide a foundation for building a professional career and a place for people to achieve and grow. 4. NCFM qualified persons are preferred and capable to handle work in any of the departments viz depository. While we emphasize on efficiency and effectiveness. surveillance . In general we look forward to strengthen our manpower resource in following categories.

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On March 21st. In contrast. was created in 1893 for the faculty and staff of Harvard University. 1924 the first official mutual fund was born. there are over 10000 mutual funds in the U. they had no idea how popular mutual funds would become. History of Mutual fund When three Boston securities executives pooled their money together in 1924 to create the first mutual fund. today totaling around $7 trillion (with approximately 83 million individual investors) according to the investment company institute. After one year. It was called the Massachusetts investors trust.S. the Massachusetts investors trust grew from $50000 in assets in 1924 to $392000 in assets (with around 200 shareholders). The first pooled fund in the U.S. 6 . The idea of pooling money together for investing purposes started in Europe in the mid-1800s.

Introduction of 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 appreciation realized by the scheme are shared by its unit holders in proportion to the number of units owned by them (pro rata). Thus a Mutual Fund is the most suitable investment for the common man as it offers an 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 today’s 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. A typical 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. A draft offer document is to be prepared at the time of launching the fund. Typically, it pre specifies the investment objectives of the fund, the risk associated, the costs involved in the process and the broad rules for entry into and exit from the fund and other areas of operation. In India, as in most countries, these sponsors need approval from a regulator, SEBI (Securities exchange Board of India) in our case. SEBI looks at track records of the sponsor and its financial strength in granting approval to the fund for commencing operations. A sponsor then hires an asset management company to invest the funds according to the investment objective. It also hires another entity to be


the custodian of the assets of the fund and perhaps a third one to handle registry work for the unit holders (subscribers) of the fund.

In the Indian context, the sponsors promote the Asset Management Company also, in which it holds a majority stake. In many cases a sponsor can hold a 100% stake in the Asset Management Company (AMC). E.g. Birla Global Finance is the sponsor of the Birla Sun Life Asset Management Company Ltd., which has floated different mutual funds schemes and also acts as an asset manager for the funds collected under the scheme.


gilts etc. The investment manager would invest the money collected from the investor in to assets that are defined/ permitted by the stated objective of the scheme. debentures. 10 . For example. What is Mutual Fund? Investors Invest / Pool Their money Profit/Loss from Portfolio Of investments Mutual Fund Co. an equity fund would invest equity and equity related instruments and a debt fund would invest in bonds. (Pool of money) Investing a Number of Stocks/Bonds Profit/Loss from individual Of investments Market (Fluctuates) A Mutual Fund is a common pool of money in to which investors with common investment objective place their contributions that are to be invested in accordance with the stated investment objective of the scheme.

 Benefits of Mutual Funds:-  Affordability: A mutual fund invests in a portfolio of assets. An investor can buy in to a portfolio of equities. which would otherwise be extremely expensive. depending upon the investment objective of the scheme. information technology etc.).e. real estate. It simply means that you must spread your investment across different securities (stocks. This kind of a diversification may add to the stability of your returns. This amount today would get you less than quarter of an Infosys share! Thus it would be affordable for an investor to build a portfolio of investments through a mutual fund rather than investing directly in the stock market. textile. 11 . bonds. shares. fixed deposits etc. i.  Diversification:The nuclear weapon in your arsenal for your fight against Risk. money market instruments.500/-. Similarly the information technology sector might be faring poorly but the auto and textile sectors might do well and may protect your principal investment as well as help you meet your return objectives. bonds. for example during one period of time equities might underperform but bonds and money market instruments might do well enough to offset the effect of a slump in the equity markets.) and different sectors (auto. Each unit holder thus gets an exposure to such portfolios with an investment as modest as Rs. etc.

This variety is beneficial in two ways: first. For example. as a measure of concession to Unit holders of open-ended equity-oriented funds. and (b) keep track of investments and changes in market conditions and adjust the mix of the portfolio. 2003. it offers different types of schemes to investors with different needs and risk appetites. It is the Fund Manager's job to (a) find the best securities for the fund. it offers an opportunity to an investor to invest sums across a variety of schemes. However.  Tax Benefits Any income distributed after March 31.  Professional Management:Qualified investment professionals who seek to maximize returns and minimize risk monitor investor's money. 12 . secondly. When you buy in to a mutual fund. given the fund's stated investment objectives. you are handing your money to an investment professional that has experience in making investment decisions. 2002 will be subject to tax in the assessment of all Unit holders. both debt and equity. an investor can invest his money in a Growth Fund (equity scheme) and Income Fund (debt scheme) depending on his risk appetite and thus create a balanced portfolio easily or simply just buy a Balanced Scheme. as and when required. will be taxed at a confessional rate of 10.5%. income distributions for the year ending March 31. Variety Mutual funds offer a tremendous variety of schemes.

which govern mutual funds. 9.In case of Individuals and Hindu Undivided Families a deduction upto Rs. Units of the schemes are not subject to Wealth-Tax and Gift-Tax. the mutual funds regulator has clearly defined rules. administration and management of mutual funds and also prescribe disclosure and accounting requirements. These rules relate to the formation. 13 . including income from Units of the Mutual Fund.  Regulations:Securities Exchange Board of India (“SEBI”). Such a high level of regulation seeks to protect the interest of investors.000 from the Total Income will be admissible in respect of income from investments specified in Section 80L.

Sponsor must contribute at least 40% of the networth of the Investment Managed and meet the eligibility criteria prescribed under the Securities and Exchange Board of 14 .Structure of Mutual Fund SEBI Trustee AMC Operations Fund Manager Sponsor Market/Sales Mutual Fund Market/Sales Schemes Distributor Investor  Sponsor: Sponsor is the person who acting alone or in combination with another body corporate establishes a mutual fund.

1996. 1996. 1908. 1882. The trust deed is registered under the Indian Registration Act.India (Mutual Funds) Regulations.  Asset Management Company (AMC):The Trustee as the Investment Manager of the Mutual Fund appoints the AMC. The main responsibility of the Trustee is to safeguard the interest of the unit holders and inter alia ensure that the AMC functions in the interest of investors and in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations. At least 50% of the directors of the AMC are independent 15 . the provisions of the Trust Deed and the Offer Documents of the respective Schemes. At least 2/3rd directors of the Trustee are independent directors who are not associated with the Sponsor in any manner.The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution made by it towards setting up of the Mutual Fund.  Trustee:Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals).  Trust: The Sponsor constitutes the Mutual Fund as a trust in accordance with the provisions of the Indian Trusts Act. The AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act as an asset management company of the Mutual Fund.

 Registrar and Transfer Agent: The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the Mutual Fund. 16 .directors who are not associated with the Sponsor in any manner. The AMC must have a networth of at least 10 crore at all times. The Registrar processes the application form. redemption requests and dispatches account statements to the unit holders. The Registrar and Transfer agent also handles communications with investors and updates investor records.

one can find a variety of investors with different needs. MUTUAL FUND On the basis of Execution and Operation On the basis of yield and investment pattern CloseEnded Open Ended Income Fund Growth Fund Balance Fund Specialised Fund Money Market Taxation Fund 17 . Types of Mutual funds In the investment market. objectives and risk talking capacities.

the scheme may offer direct repurchase facility to the investors. Closed-ended schemes are usually more illiquid as compared to open-ended schemes and hence trade at a discount to the NAV.Mutual Fund schemes can broadly be classified into many types as given below: Close-ended Funds:The unit capital of a close-ended product is fixed as it makes a onetime sale of fixed number of units. They cannot purchase any more units. the unit capital in closed-ended schemes usually remains unchanged. This discount tends towards the NAV closer to the maturity date of the scheme. Unlike open-ended schemes. These schemes are launched with an initial public offer (IPO) with a stated maturity period after which the units are fully redeemed at NAV linked prices. the door is closed for the investors.  The main objective of this fund is capital appreciation.The main features of the close-ended funds are:  The period and/or the target amount of the fund are definite and fixed beforehand. investors can buy or sell units on the stock exchanges where they are listed. there is no repurchase facility by the fund.  These units are publicly traded through stock exchange and generally. In the interim. 18 .  Once the period is over and/or the target is reached. After an initial closed period. Features: .

• The investor is offered install liquidity in the sense that the unit can be sold on any working day to the Fund. right or bonuses as rewards for their investment. 19 . Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. • Generally. These do not have a fixed maturity. Open-ended Funds:An open-end fund is one that is available for subscription all through the year. • The main objective of this fund is income generation. The Fund fixes a different price for their purchases and sales. the entire investment pertaining to a closedend scheme is liquidated and the proceeds are distributed among the unit holders.  At the time of redemption. The key feature of open-end schemes is liquidity. The inventors get dividend. The whole fund is available for the entire duration of the scheme and there will not be any redemption demands before its maturity. • These units are not publicly traded but the Fund is ready to repurchase them and resell them at any time. the listed prices are close to their Net Asset Value.The main features of the Open-ended funds are: • There is complete flexibility with regard to one's investment or disinvestment. Features: .

yearly or years and so on. • The main objective of this type fund is to declare regular dividends and not capital appreciation. bonds etc. says Half.The main features of the Income funds are: • The investor is assured of regular income at periodic intervals. Income Funds are ideal for capital stability and regular income. 20 . Features: . Such schemes generally invest in fixed income securities such as bonds.On The Basis Of Income  Income Funds:The aim of income funds is to provide regular and steady income to investors. • This is best suited to the old and retired people who may not have any regular income. • It concerns itself with short run gains only. corporate debentures and Government securities. • The pattern of investment is oriented towards high and fixed income yielding securities like debentures.

term. • The Fund may declare dividend. Features: .The main features of the Growth funds are: • The Growth oriented fund aims at meeting the investors' need for capital appreciation. Such schemes normally invest a majority of their corpus in equities. have outperformed most other kind of investments held over the long term. • The Investment strategy therefore. Growth Funds:The aim of growth funds is to provide capital appreciation over the medium to long. but its principal objective is only capital appreciation. It has been proven that returns from stocks. • The Fund tries to get capital appreciation by taking much risk and investing on risk bearing equities and high growth equity shares. conforms to the Fund objective by investing the fund predominantly on equities with high growth potential. 21 . Growth schemes are ideal for investors having a long-term outlook seeking growth over a period of time.

these investors are comfortable investing in a fund that they believe is a good representative 22 .  Balance Funds:The aim of balanced funds is to provide both growth and regular income. They can accumulate wealth for future needs.• This is best suited to salaried and business people who have high risk bearing capacity and ability to defer liquidity. or a specific sector of the market. An Index also serves as a relevant benchmark to evaluate the performance of mutual funds. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. Some investors are interested in investing in the market in general rather than investing in any specific fund. or fall equally when the market falls. Such investors are happy to receive the returns posted by the markets. These are ideal for investors looking for a combination of income and moderate growth. In a rising stock market.  Specialised Funds: Index schemes:The primary purpose of an Index is to serve as a measure of the performance of the market as a whole. As it is not practical to invest in each and every stock in the market in proportion to its size. the NAV of these schemes may not normally keep pace.

preservation of capital and moderate income. Typically entry and exit loads range from 1% to 2%. commercial paper and inter-bank call money. Returns on these schemes may fluctuate depending upon the interest rates prevailing in the market. Index Funds are launched and managed for such investors. if the fund has a good performance history. a commission will be payable. It could be worth paying the load. These schemes generally invest in safer short-term instruments such as treasury bills.  Tax Saving schemes: Investors (individuals and Hindu Undivided Families “HUFs”) are being encouraged to invest in equity markets through Equity Linked Savings Scheme (“ELSS”) by offering them a tax rebate. 23 . Units purchased cannot be assigned / transferred/ pledged / redeemed / switched – out until completion of 3 years from the date of allotment of the respective Units. That is. An example to such a fund is the HDFC Index Fund.  Load Funds A Load Fund is one that charges a commission for entry or exit.  Money Market Funds: The aim of money market funds is to provide easy liquidity. each time you buy or sell units in the fund.of the entire market. certificates of deposit. These are ideal for corporate and individual investors as a means to park their surplus funds for short periods.

 No-Load Funds A No-Load Fund is one that does not charge a commission for entry or exit. no commission is payable on purchase or sale of units in the fund. That is. The advantage of a no load fund is that the entire corpus is put to work. 24 .

25 . 2004. as of December 31. over GBP187 billion of funds under management. As a group Prudential plc has.500 employees worldwide.Prudential plc is a leading international financial services group providing retail financial products and services and fund management to many millions of customers worldwide. more than 16 million customers and over 22.

Prudential ICICI Asset Management Company. ICICI Bank currently has subsidiaries in the United Kingdom. venture capital and asset management.637 crore in fiscal 2004). Both 26 . 2002. 2005 and profit after tax of Rs. (49%:51%) a joint venture between Prudential Plc.67. 1.005 crore for the year ended March 31. The AMC has already launched a range of products to suit different risk and maturity profiles. MFD/PM/567/02 dated June 4. Bangladesh and South Africa. 2005 (Rs. branches in Singapore and Bahrain and representative offices in the United States. has accorded its approval in recognizing ICICI Bank Ltd. 2004. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross-border needs of clients and leverage on its domestic banking strengths to offer products internationally. life and non-life insurance.14 crore (1 crore = 10 million) as of March 31. an Indian financial institution. The joint venture was formed with the key objective of providing the Indian investor mutual fund products to suit a variety of investment needs. United Arab Emirates. Canada and Russia. (Source: Overview at www.1. China. ICICI Bank has a network of about 560 branches and extension counters and over 1. India's premier financial institution. UK's leading insurance company and ICICI Bank Ltd. ICICI Bank is India's second-largest bank with total assets of about Rs.900 ATMs. ICICI Bank was originally promoted in 1994 by ICICI Limited. with ICICI Bank Ltd. Prudential ICICI Asset Management Company Limited has a networth of about Rs. as a co-sponsor consequent to the merger of ICICI Ltd. 2. vide its letter no.Securities and Exchange Board of India. 80.icicibank.com).659 crore at March 31. and was its wholly-owned subsidiary.

Kalpana Morparia Mr.Chairman Mr. PruICICI will conduct its business with • • • • • • Honesty and trustworthiness in all interactions.) Swati A Piramal Mr. S. Mark Norbom Mr. K. Pradip P. Mr. (Mrs. Kamath . Collaboration and teamwork. Gupta Mr. The Prudential ICICI AMC Board comprises reputed people from the finance industry both from India and abroad. V. An understanding of customer needs and the desire to satisfy them. R. A pioneering spirit and excellence in action. Pankaj Razdan – Managing Director 27 . K. Dadi Engineer Mr. B. Ajay Srinivasan Ms. The highest service standards. Shikha Sharma Ms. Mehta Mr. Shah Dr. A consistently above average performance.Prudential and ICICI Bank Ltd have a strategic long-term commitment to the rapidly expanding financial services sector in India.

Our salary plus bonus compensation framework provides each person a means of substantially benefiting through performance related pay.P.M.J. Our managers in PruICICI are measured on how they build an environment that engenders meritocracy and rewards contribution.Sr.Chief Financial Officer Prudential ICICI offer employees an ideal environment to progress their careers and enhance their skills. Subhedar Mr.Desai . At Prudential ICICI. openness and trust. S. each person is given a great deal of independence and responsibility to manage their assignments and make their contributions count.Vice President Information Technology . We seek to reward our people commensurate with their contributions at a competitive standard compared to the industry. VP – Legal.Vice President .Parthasarathy Pankaj Razdan Nilesh Shah Vasant Sanzigiri Kalyan Parasath Ranganath Athreya Ashok Suvarna B Ramakrishna . Balaji Rao Mr.Sr.Chief Investment Officer . We strive to provide our people with a professional work environment and a culture of respect. 28 .Chairman Mr.B. E.Managing Director . Vice President & Head Human Resources .S.S .Operation . D. Compliance & C. Nagesh Pinge Mr.Mr.

They are not suitable for investors who are risk averse and are focused on maximizing current income or conserving principal. They invest in common stocks with a high potential for rapid growth and capital appreciation. The fund would have long-term growth potential but provide low current income. Prudential ICICI Technology Fund. 29 . Prudential ICICI Tax Plan. The funds offered under this category are the Prudential ICICI Growth Plan. Prudential ICICI FMCG Fund. An equity fund gives an exposure to the stock market. Prudential ICICI Index Fund.Equity funds seek to provide maximum growth of capital with secondary emphasis on dividend or interest income.

Prudential ICICI Infrastructure Fund and Prudential ICICI Services Industries Fund. The AMC will follow a structured investment process in order to identify the best stocks for inclusion in the portfolio. The overriding objective of the AMC in managing its investments is to produce a consistently above average long-term performance. This would involve consistently examining all stocks under an internally developed research framework. Prudential ICICI Emerging S. Fund. The AMC believes in a bottom-up approach to stock picking.T. Prudential ICICI Dynamic Plan. 30 .A. Prudential ICICI Discovery Plan. the AMC will take advantage of the opportunities that present themselves from time to time because of inefficiencies of the securities markets. However.R. A stock would be considered or inclusion in the portfolio when the valuation does not adequately capture its underlying fundamental value in the AMC's opinion based on the above factors. The AMC's portfolio management style is conducive to a low portfolio turnover rate.Prudential ICICI Power. This means that the focus is on the fundamental quality of companies as opposed to a focus on favoured sectors and market movements. The AMC will endevour to balance the increased cost on account of higher portfolio turnover with the benefits derived therefrom.

Balanced and equity-income funds are suitable for conservative investors who want high current yield with some growth. 31 . an investment in the balanced fund would be ideal. Prudential ICICI Child Care Plan and Prudential ICICI Blended Plan. It gives you an exposure to the stock market without the entire risk of the stock market. The funds offered under this category are the Prudential ICICI Balanced Fund. If you seek to generate long-term capital appreciation and current income.Balanced funds are more evenly invested in equities and income securities.

The funds offered under this category are the Prudential ICICI Income Plan.The AMC proposes to invest in a mix of equities and fixed income securities with the aim of generating capital appreciation. there is some principal risk involved despite the fund's conservative nature. The goal of fixed income funds is to provide high current income consistent with the preservation of capital. The Prudential ICICI Gilt-Investment Fund. These funds invest in corporate bonds or government securities that have a fixed rate of return. while at the same time minimizing the volatility inherent in pure equity schemes. Growth of capital is of secondary importance. the Prudential ICICI Gilt-Treasury Fund. 32 . Prudential ICICI Liquid plan. With this aim. the AMC would allocate the assets between equity and fixed income instruments within the limits laid down for each scheme.Since bond prices fluctuate with changing interest rates. The funds are suitable for investors who want to maximize current income and who do not wish to assume a high degree of capital risk in order to do so.

In addition. Prudential ICICI Monthly Income Plan. Prudential ICICI Short Term Plan.Rated debt instruments in which the Scheme invests will be of investment grade as rated by a credit rating agency. including the politico-economic environment and factors affecting liquidity and interest rates. 33 . Prudential ICICI Income Multiplier Fund.Prudential ICICI Fixed Maturity Plan. specific approval of the Board of the AMC will be obtained for such an investment. the short as well as longer term financial health of the issuer. rigorous indepth credit evaluation of the securities proposed to be invested in will be carried out by the investment team of the AMC. Prudential ICICI Long Term Floating Rate Plan and Prudential ICICI Floating Rate Plan. With the aim of controlling risks. the investment team of the AMC studies the macro economic conditions. Prudential ICICI Long Term Plan. Prudential ICICI Gilt Fund PF Option. The credit evaluation includes a study of the operating environment of the company. In case a debt instrument is not rated. Prudential ICICI Flexible Income Plan. Prudential ICICI Sweep Plan. The AMC aims to identify securities. which offer superior levels of yield at lower levels of risks. The AMC would use this analysis to attempt to predict the likely direction of interest rates and position the portfolio appropriately to take advantage of the same. the past track record as well as the future prospects of the issuer.

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the SEBI (Mutual Funds) Regulations and the objectives of the schemes. State-of-the-art systems and communications are in place to ensure a seamless flow across the various activities undertaken by UTI AMC. INTRODUCTION UTI Mutual Fund is managed by UTI Asset Management Company Private Limited (Estb: Jan 14. Bandra (East). 2003) who has been appointed by the UTI Trustee Company Private Limited for managing the schemes of UTI Mutual Fund and the schemes transferred / migrated from UTI Mutual Fund.Kurla Complex. UTI AMC is a registered portfolio manager under the SEBI (Portfolio 35 . the Trust Deed. Mumbai 400 051 will provide professionally managed back office support for all business services of UTI Mutual Fund (excluding fund management) in accordance with the provisions of the Investment Management Agreement. The UTI Asset Management Company has its registered office at : UTI Tower. Bandra . Gn Block.

SPONSORS Three leading public sector banks – Bank of Baroda (BOB). UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs of every class of citizenry. registered in Guernsey. Bank of Baroda Life Insurance Corporation of India Punjab National Bank 36 . responsive. and transparent and SEBI compliant entity. The fund managers are also ably supported with a strong in-house equity research department. To ensure better management of funds. Punjab National Bank (PNB) and State Bank of India (SBI) and Life Insurance Corporation of India (LIC). All the branches. 1993 on February 3 2004. It has a well-qualified. UFCs and registrar offices are connected on a robust IT network to ensure cost-effective quick and efficient service. restructured. UTI Asset Management Company presently manages a corpus of over Rs. It has reset and upgraded transparency standards for the mutual funds industry. It has a nationwide network consisting 56 UTI Financial Centres (UFCs) and representative offices in Dubai and London.20000 Crore. 11 satellite offices have also been opened in select towns and districts. Channel Islands. who have been highly empowered to manage funds with greater efficiency and accountability in the sole interest of unit holders.Managers) Regulations. efficient. for undertaking portfolio management services and also acts as the manager and marketer to offshore funds through its 100 % subsidiary. UTI International Limited. a risk management department is also in operation. With a view to reach to common investors at district level. UTI Mutual Fund has come into existence with effect from 1st February 2003. the largest public financial investment institution and life insurer in India have entered into an agreement with the Government of India as Sponsors of the UTI Mutual Fund. professional fund management team. All these have evolved UTI Mutual Fund to position as a dynamic.

2003. UTI Asset Management Company Private Limited has been appointed as the Asset Management Company of the UTI Mutual Fund by the Trustee in terms of Investment Management Agreement dated December 9.400 051.State Bank of India Trustee UTI Trustee Company Private Limited a company incorporated under The Companies Act.10 crore. 25% is held by each of the Sponsors. 2002 executed between the Sponsors and the Trustee Company (the Trustee). Gn Block. Bandra . Registered office: UTI Tower. Registered office: UTI Tower. 1956. Maumbai -400 051. Out of the AMC's total paid-up capital of Rs. BAndara –Kurla Complex. The AMC apart from managing the schemes of UTI Mutual Fund will also manage the schemes transferred/migrated from UTI MF. Board of Directors Shri Janki Ballabh Prof P G Apte Shri I D Agarwal Shri S P Oswal Asset Management UTI Asset Management Company Private Limited is a company incorporated under The Companies Act. The AMC was approved by SEBI to act as the asset management company for UTI Mutual Fund vide their letter no. Mumbai . Bandara(East). 2002 executed between UTI Trustee Company Private Limited and UTI Asset Management Company Private Limited.Kurla Complex. 1956 will be the Trustee of transferred/migrated schemes are the first and sole trustee of the Mutual Fund under the Trust Deed dated December 9. Gn Block. Bandra (East).MF/BC/PKN/03 dated January 14. in accordance with 37 .

Systems are in place to ensure that bank and securities accounts are segregated and there is no conflict of interest between the various activities undertaken by UTI AMC. for undertaking portfolio management services. the SEBI (Mutual Funds) Regulations and the objectives of the schemes. The registration code is PM/INP 000000860. acts as manager to offshore funds and markets these offshore funds abroad. UTI International Ltd. UTI AMC is not undertaking any other business activities other than that mentioned above. UTI AMC will be entering into a service agreement with the Administrator of the Specified Undertaking of The Unit Trust of India to provide back office support for business processes excluding fund management..the provisions of the Investment Management Agreement. a 100 % subsidiary of UTI AMC. the Trust Deed. registered in Guernsey. FUND MANAGERS A K SRIDHAR SANJAY RAMDAS DONGRE GAUTAMI DESAI AMANDEEP CHOPRA SWATI KULKARNI SANJEEV BHASIN SIDDHARTH DEMBI UTI Mutual Fund Investment Philosophy 38 . UTI AMC has been registered as a portfolio manager under the SEBI (Portfolio Managers) Regulations. Channel Islands. 1993 on February 3 2004.

It believes in having a balanced and well-diversified portfolio for all the funds and a rigorous inhouse research based approach to all its investments. It combines top-down and bottom-up approaches to enable the portfolios/funds to adapt to different market conditions so as to prevent missing an investment opportunity.(CAMS) Datamatics Financial Software & services Limited Karvy Computershare Pvt.UTI Mutual Fund’s investment philosophy is to deliver consistent and stable returns in the medium to long term with a fairly lower volatility of fund returns compared to the broad market. In terms of its funds performance. UTI Mutual Fund follows an investment approach of giving as equal an importance to asset allocation and sectoral allocation. It is committed to adopt and maintain good fund management practices and a process based investment management. as is given to security selection while managing any fund. Mumbai 1st Feb 2003 Registrars: Computer Age Management Services Pvt Ltd. UTI Mutual Fund aims to consistently remain in the top quartile vis-à-vis the funds in the peer group. Ltd. Custodians: Stock Holding Corporation of India Limited Citibank NA HDFC Bank Limited 39 . UTI Technology Services Ltd.

by investing in a divesified portfolio of short-term money market securities. seeking to provide highest possible current income. 40 .• Liquid Funds Category An open-ended pure debt liquid plan.

.To generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments and fixed rate debt / money market instruments.. The scheme seeks to generate steady & reasonable income with low risk & high level of liquidity from a portfolio of money market securities & high quality debt. treasury bills and repos of varying maturities with a view to generate credit risk free return. It aims to generate reasonable return commensurate with objective of Low risk and high degree of liquidity. 41 . • Income Funds Category An open-end Gilt-Fund with the objective to invest only in Central Government securities including call money.

To generate credit risk-free return through investments in sovereign securities issued by the Central and / or a State Government. 42 .. LTP To generate credit risk-free return through investments in sovereign securities issued by the Central and / or a State Government.. STP It aims to generate attractive returns consistent with capital preservation and liquidity.. treasury bills and repos of varying maturities with a view to generate credit risk free return.An open-end Gilt-Fund with the objective to invest only in Central Government securities including call money. It aims to generate attractive returns consistent with capital preservation and liquidity. To generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments and fixed rate debt / money market instruments.

. Best suited to the investors. The fund aims to distribute income periodically. An open-ended debt oriented fund investing a minimum of 90% in Debt and G-Sec and a maximum of 10% in equity instruments. Open-end 100% pure debt fund.An open ended debt oriented fund with 100% investment in Debt/Gsec. The scheme seeks to generate steady & reasonable income with low risk & high level of liquidity from a portfolio of money market securities & high quality debt.. which invests in rated corporate debt papers and government securities with relatively low risk and easy liquidity. Investment can be made in the name of the children upto the age of 15 years.. • Asset Allocation Funds Category 43 .

Variable Investment Scheme is an open-ended scheme with dynamic allocation between equity and debt classes.The UTI. • Index Funds Category 44 .

An open-ended equity fund with the objective to invest in select stocks of the BSE Sensex and the S & P CNX Nifty.. To provide returns that closely correspond to the returns of stocks as represented by BSE Sensex under Sensex Plan and S&P CNX Nifty Index under Nifty Plan subject to tracking error. 45 .. The fund does not replicate any of the indices but aims to attain performance better than the performance of the indices....UTI MIF is an open-ended passive fund with the primary investment objective to invest in securities of companies comprising the BSE sensex in the same weightage as these companies have in BSE sensex. UTI NIF is an open-ended passive fund with the objective to invest in securities of companies comprising of the S&P CNX Nifty in the same weightage as they have in S&P CNX Nifty. To provide returns that closely correspond to the returns of stocks as represented by BSE Sensex under Sensex Plan and S&P CNX Nifty Index under Nifty Plan subject to tracking error..

closely correspond to the performance and yield of the basket of securities underlying the S&P CNX NIFTY Index. 46 . before expenses.The objective of the scheme is to provide investment returns that. • Balanced Funds Category An open-ended balance fund investing between 40% to 60% in equality related securities and the balance in debt (fixed income securities) with a view to generate regular income together with capital appreciation.

The scheme aims at providing income distribution/ cumulation of income and capital appreciation over a long term from a prudent portfolio mix of equity and fixed income securities. Investment can be made in the name of the children upto the age of 15 years so as to provide them. practice or business or enabling them to set up a home or finance the cost of other social obligation. religious. The fund is designed to provide an enabler to adult female persons in pooling their own savings and/ or gifts into an investment vehicle so as to get periodic cash flow near to the time of any chosen festival/ occasion or to allow income/ gains redeployed in the scheme and repurchase units partially or fully as and when desired. 47 . This is an open-end income oriented scheme. a means to receive scholarship to meet the cost of higher education and/or to help them in setting up a profession. An open-ended debt oriented fund with investment in Debt/G-Sec of minimum 60% and a maximum of 40% in Equity.An Open-ended balance fund. after they attain the age of 18 years. An open-ended scheme with a minimum 70% investment in Debt/GSec and a maximum 30% investment in equity. The scheme aims at catering to the investment needs of charitable. educational trusts and similar institutions to provide them an investment vehicle to avail of tax exemption and also to have regular income.

An open-ended balanced fund with an objective of investing not more than 40% of the funds in equity and equity related instruments and balance in debt and money market instruments with low to medium risk profile. • Equity Funds Category 48 . An open-ended balanced fund with a maximum equity allocation of 40% and the balance in debt. Investment by an individual in the scheme is eligible for exemption under section 88 of the IT Act 1961. in the form of periodical cash flow upto the extent of repurchase value of their holding through systematic withdrawal plan. In addition the scheme also offers Life Insurance and Accident Insurance cover. This ensures to provide pension to investors particularly self-employed persons after they attain age of 58 years.

An open-ended equity fund investing a minimum of 80% in equity and equity related instruments. It aims at enabling members to avail tax rebate under Section 88 of the IT Act and provide them with the benefits of growth. 49 . An open-end equity fund aiming to provide benefit of capital appreciation and income distribution through investment in equity. Capital appreciation by primarily investing in equity and equity related instruments. convertible debentures. The scheme primarily aims at securing for the investors capital appreciation by investing the funds of the scheme in equity shares of companies with good growth prospects. An open-ended equity fund with an objective of long-term capital appreciation through investments in equities and equity related instruments. derivatives in India and also in overseas markets.

One of the Growth Sectors Funds aiming to provide growth of capital over a period of time as well as to make income distribution frominvestment in stocks of Petro Sector.This scheme seeks to generate capital appreciation and/or income distribution by investing the funds of the scheme in equity shares and equityrelated instruments. To seek capital appreciation through opportunities arising out of listed growth and undervalued stocks. An open-ended fund which exclusively invests in the equities of the Pharma & Healthcare sector companies. An open-ended fund which invests exclusively in the equities of the Petro Sector companies. Mastergain is open-ended equity scheme with an objective of investing at least 80% of its funds in equity and equity related instrument with medium to high risk profile and upto 20% in debt and money market instruments with low to medium risk profile. This fund is one of the growth 50 .

An open-ended equity fund for investment in equity shares.sector funds aiming to invest in companies engaged in business of manufacturing and marketing of bulk drug. An open-ended equity fund with the objective to provide Capital appreciation through investments in the stocks of the companies engaged in the automobile and auto-ancillary industry. An open-ended fund which invests exclusively in the equities of the Software Sector companies. formulations and healthcare products and services. convertible & non-convertible debentures and other capital and money market instruments with a provision to invest upto 50% of its corpus in 51 . One of the growth sectors funds aiming to invest in equity shares of companies belonging to information technology sector to provide returns to investors through capital growth as well as through regular income distribution. An open-ended equity fund with the objective to provide capital appreciation through investments in the stocks of the companies/institutions engaged in the banking and financial services activities.

PSU’s equities and equity related products. finance. etc. The fund aims to provide unit holders capital appreciation & income distribution. An open-ended debt oriented fund investing a minimum of 90% of its exclusively in the equities of companies having strong products or corporate brands to provide investors benefits of capital appreciation. 52 . One of the growth sector funds aiming to provide growth of capital over a period of time as well as to make income distribution by investing the funds in stocks of companies engaged in service sector such as banking. Pharmaceutical. Engineering etc. An open-ended equity fund investing in stocks which are currently under valued to their future earning potential and carry medium risk profile to provide 'Capital Appreciation'. An open-ended equity fund with the objective to invest predominantly in the equity shares of multinational companies in diverse sectors such as FMCG. An open-ended fund which invests in the equities of the Services Sector companies of the country. insurance.

An open-ended equity fund with the objective to provide Capital appreciation through investing in the stocks of the companies engaged in the sectors like Metals. Building materials. An open-ended equity fund with the objective to provide Capital appreciation through investing in the stocks of the companies where the State/Central Govt owns the majority of the holding or management control is vested with State/Central Govt. An open-ended equity fund with the objective to provide 'Capital appreciation' by investing primarily in mid cap stocks. oil and gas. The fund will invest in the stocks of the companies which form part of Basic Industries. 53 . engineering etc. power.An open-ended equity fund with the objective to provide capital appreciation through investment in companies from the universe of top 50 companies in terms of market capitalization. chemicals.

Capital appreciation by investing in listed companies that are / have potential to emerge as global players in their respective sectors. 54 . which endeavours to provide medium to long termcapital gains and/or dividend distribution by investing predominantly in equity and equity related instruments thatoffer a high dividend yield. The Fund's investment policies are based on insights from behavioral finance. UTI Dividend Yield Fund is an open-ended equity orientedscheme. This scheme seeks to generate capital appreciation and/or income distribution by investing the funds of the scheme in stocks that are "Leaders" in their respective industries/sectors/sub-sector. The fund aims to provide long-term capital appreciation/dividend distribution through investments in listed equities and equity-related instruments.

55 .

99 56 .422 5000 Daily Daily Less then 5 Crore 2. 2000 10 128. 2006 34. 2006 Company Grasim Industries Ltd ITC Ltd Bharati Tele .5%.79 ON 16 FEBRUARY NAV UTI Equity Fund – Growth Prudential ICICI Technology Fund – Growth 30.5 Crore to 20 Crore More then 0% 2.79 3.9 4.42 5.56 5. 0%.13 3.69 5. Aztec Software per % 12.25 5.84 10. in crores) Increase/Decrease since Jan 31.8023 on Feb 28.52 12.25% More Then 5 Crore 0%.Comparison UTI Equity Fund & PruICICI Technology Fund Type of Scheme Nature of Scheme Inception Date Face Value(Rs/Unit) Fund Size (Rs.06 5. 2006 -9.63 5. in crores) Minimum Investment (Rs) Purchase Redemptions NAV Calculation Open Ended Equity Apr 20. 2006 (Rs.47 4.Ventures Satyam Computer Services Shoppers Stop Ltd Nestle India Ltd UTI Bank Ltd Punjab National Bank TVS Motor Company IVRCL Infrastructure per % 5. Exit Load is 0%.47 4.1165 on Feb 28.8 3.04 Company Subex Systems Ltd Deccan Chronicle Holdings Satyam Computer Mastek Ltd Infosys Technologies Ltd TCS HCL Technologies Visual Soft Technologies Tulip IT Services Ltd. Entry Load Exit Load Top 10 Holdings as on Feb 28.335 2000 Daily Daily Less then 2.87 5.25% 0. Open Ended Equity Jan 28.5 Crore 2.06 5.14 5.13 5.2 5. 1992 10 1595.

96 UTI Money Market 3.04 0% 20% 40% 60% 80% 100% 57 .75 Pru ICICI 96.25 Equity 98.Fund Allocation 1.

0% Exit Load NAV UTI Balanced Fund . 2.27 0% 20% 40% 60% 80% 100% 58 . 1995 Oct 7.4504 321.65 Face Value(Rs/Unit) Asian Size Paints Limited 2.18 NAV Calculation Dabur India Ltd 2. 1999 5.69 Less ten 2. 2. Exit Load is 0%.51 Daily Daily State Bank of India 2.62 10 10 Grasim Industries Ltd 4.5 Crore Less the 5 Crore 2.45 Pru ICICI Debt 19.968 Reliance Industries Ltd 3.5%.06 -2.Comparison UTI Balanced Fund & PruICICI Balanced Fund Top 10 Holdings UTI Balanced Fund – UTI Balanced Fund – Growth Type of Scheme ICICI BANK LTD.66 Inception Date Punjab National Bank 2. in crores) ITC Ltd 2.1 29.88 IDFC of Scheme 4.25% 2.25%.21 Purchase Redemptions ACC Ltd.28 Increase/Decrease since Jan 31. 4.Growth Prudential ICICI Balanced .Growth ON 16 FEBRUARY 50.45 68.01 UTI Money Market 12.5 Greater than 5 Crore 0%.54 Daily Daily Citifinancial Consumer Fin.72 65.75 1000 5000 GOI 3.11 Bharat Forge Ltd Madras Ltd 5.26 Minimum Investment (Rs) NALCO 2. More Then 2 Crore 0%. 3.18 559.1 Equity 29.17 Entry Load Prudential ICICI Balanced Growth Growth Prudential ICICI Balanced ––Growth Open Ended Open Ended 7.82 Equity &Cements Debt Equity & Debt Balmer Lawrie Feb 12. 8. to 20 Crore 0. 2006 Bharat Heavy Electricals Ltd 2.45 Nature Reliance Industries Ltd 2.79 Fund A llocation 5.1083 Wyeth Laboratories Ltd 4.28 Fund (Rs.034 -10.16 Ultratech Cemco Ltd.

86 Indian Oil Corporation Ltd 8. Less then 1 Mil.45 3.25 3.47 3. After 3 Year 1%..72 Ultra Tech Cement 1. 1 Year to 3 Year 3%.282 5000 Daily Daily Entry Load is 0%. 1998 10 278.6538 2.74 GOI 7.45 4.3376 Fund Allocation 59 . 1994 10 436.8337 on Feb 28.62 3. 2006 Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load UTI Retirement Benefit Plan Open Ended Debt Dec 26. More than 1 Mil.94 3. Asahi India Safety Glass Ltd Hindalco Industries Ltd State Bank of India GOI Balmer Lawrie & Company Ltd Madras Cements Ltd Bharat Forge Ltd Per % 5. Prudential ICICI Income Fund Growth Open Ended Debt Jun 19.23 2. Bank Of India 6.. in crores) Increase/Decrease since Jan 31.43 Prudential ICICI Income Fund Growth Company Per % GOI 14.09 GOI 1. Ltd 3.82 2.5%.44 3. 05% 00% Top 10 Holdings UTI Retirement Benefit Plan Company GOI Reliance Industries Ltd Hongkong & Shanghai Banking Corpo. 2006 -4.58 GOI 3.Comparison UTI Retirement Benefit Plan & Purl ICICI Income Fund Growth Type of Scheme Nature of Scheme Inception Date Face Value(Rs/Unit) Fund Size (Rs. Less then 1 Year 5%.05 NAV UTI Retirement Benefit Plan Prudential ICICI Income Fund Growth ON 16 FEBRUARY 19.55 Grasim Industries Ltd 2.2384 20.85 Associated Cement Co.56 State Bank of India 10.29 Industrial Dev.278 10000 Monthly Weekly Entry Load is 1.

31 Prul ICICI 0 39.35.69 Debt Money Market 0% 20% 40% 60% 80% 100% 60 .82 UTI 41.54 Equity 60.64 22.

61 .

 People with more good income are not investing in MFs because these do not know the concept of NF properly and more area thinks that MFs now a day's are becoming risky due to unstable equity market.Findings  In compassion to MFs people are more interested in investing in other instruments like bank deposits. LIC etc. Bank Deposits and there sources but they don't 62 .  People are investing their money for regular income in post office. NSC. PPF. post office saving schemes.  Now days because of higher growth of Indian capital market peoples are little bit aware about MF.

63 .

Hence. 64 . it is necessary to educate them by arranging some educational seminar be on MFS to show them how to invest in MFS? What is the liquidity? What is the risk covered in MFS?  Most of people know only UTI MFs only.  They are have to increase their awareness advertisement campaign as they do in cash of bonds and fixed deposits so that manned awareness of MFs increase and inventory can think before investity in bon do or fixed deposits or equity shares. it is necessary to increase advertisement effort for private MFs & public MFs. Hence.Suggestions Considering the above findings the suggestion is:  Due to lack or less awareness of people about MFS they are not investing in it.

65 .

K.BIBLIOGRAPHY NO.Bhalla Gordon & Natarajan V.A. 1 2 3 4 NAME OF BOOK Investment Management Investment Management Capital Market in India Investment Management EDITION 4th AUTHOR V.Gangadhar 66 .Avadhani V.

com 67 .com www.peninsularindia.utifm.pruicici.com www.amfi.Wed Site: www.com www.

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