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INDIAN INSTITUTE OF PLANNING AND MANAGEMENT NEW DELHI
THESIS REPORT ON “STUDY OF INVESTMENT PATTERNS OF SMALL AND MEDIUM ENTERPRISES (SMEs)”
SUBMITTED TO: PROF.SUMANTA SHARMA PROF. VIJAY KR.BODDU EXTERNAL GUIDE: MR.ANIRUDH SHARMA
SUBMITTED BY: DIVYA KOTHIWAL PGP FW !""# !"$" ALUMNI ID NO.: DF%"#%$" F &'(
Starting with the acknowledgement, I have presented with the background of the Mutual Fund Industry. There is information on mutual fund comprising of things like as to what mutual fund is: its history, types of mutual funds etc. e!t there is information of study etc., actual analysis but firstly starting with giving some information on the type of "uestionnaire design used, sampling techni"ue, research design etc., The primary ob#ective of the report is to study the investment patterns of Small and Medium $nterprises and to further establish if the type of trade they are in affects the investment decisions in Mutual Funds. %e did a market research by making the company fill a structured "uestionnaire and find out their e!posure to Mutual Funds.
This is to certify that the thesis titled “Study of investment patterns of Small and Medium Enterprises(SMEs)” prepared by Ms. D*+,- K./0*1-2 for the award of degree in Master of &usiness 'dministration has been completed under my supervision ( guidance. It is an original piece of work based on primary as well as secondary data. This work is satisfactory and complete in every respect. I wish her all the success for her future endeavour. Thanking you )ours Sincerely
THESIS APPROVAL LETTER *ear *ivya +othiwal,
DIVYA KOTHIWAL This is to inform that your thesis proposal on . &: 2> ' thesis would be re#ected if there is any variation in the topic/title from the one approved and registered with us. to be conducted under the guidance of Mr.Study of Investment -atterns of Small ( Medium $nterprises. )ou are re"uired to correspond with your internal guide -rof. :> The candidate needs to handwrite at least 2:00 to 2400 words on the summary of thesis at the time of viva.sharma9iipm. 'nirudh Sharma is hereby approved and the topic registration id number is *F/01/203F3456 Make it a comprehensive thesis by ensuring that all the ob#ectives as stated by you in your synopsis are met using appropriate research design7 a thesis should aim at adding value to the e!isting knowledge base.302:.vi#ay9iipm.edu -hone: @62 02:. by sending at least four response sheets =attached along with this mail> at regular intervals before the last date of thesis submission..Sumanta Sharma *ean =-ro#ects> II-M Sumanta. <<40502 =*> @62 02:. <<40524 =&oard> SYNOPSIS N-34: *ivya +othiwal PGP/FW/08-10 DF/08/10-F-579 . &oddu at boddu. 8i#ay +r. ?egards. -rof .edu -h.3<<4052.
IAIAI &ank> will be helping me in the research and the study.:75/*. My $!ternal Cuide. PGP/FW/08-10 DF/08/10-F-579 .6: F. followed by the primary research and by forecasting with and without the two e!ternal forces or factors and finally coming up with a solution in the final stage.45*-2*<-/*.. A? analyBing their investment patterns.DIVYA KOTHIWAL S45/*.5 B-/50: Fall/%inter :0013:020 P0.6 A94-: Finance I6/9. Dater.*5: . -atterns of Small ( Medium S.64 N73849: 612146<620 E 3-*2 I:: kothiwaldivya9gmail.Study of Investment $nterprises. Mr.6: I will be focusing primarily on the small and medium enterprises in ew *elhi. The basic aim of the research in the initial stages will be to analyBe the trend of the mutual fund industry. 'nirudh Sharma =Manager.com T04s*s T.
: S45. To further establish that if the type of trade affects the investment decisions in Mutual funds. R4s4-950 M4/0. ' primary research will help show =in which I would be visiting officials of various companies in this business> the forecasting in which I would be using all the tools possible to forecast what could go wrong and what can possibly be the effects and after effectsF PGP/FW/08-10 DF/08/10-F-579 .. S5. Eence. D-/-: This form of methodology will be used for finding the trend followed by the enterprises and forecasting the possible outcome in the coming years.DIVYA KOTHIWAL R4s4-950 O8=45/*+4s: 2.9@: The scope for this study is to gather information from the various sources. H. an analysis of pre3e!isting data in a different way to answer the "uestions or else to answer a separate "uestion than the originally intended one will help with the use of secondary data. understand it and derive the factors that are responsible or affect the investment patterns of SM$s in relation to the mutual fund industry. Mostly.>./04s*s: Mapping the concerned area to do a market research study with the help of the "uestionnaires and find out their e!posure to the Mutual Funds. The sources for the same will consist of internet.4 . newspaper articles.. books and so on.? /04 W. :.2. To study and understand the investment patterns of SM$s. the "uestions will be open ended but will make sure that the information that will be e!tracted from the same should be very effective in coming to conclusions. relevant study papers. P9*3-9.6:-9.. D-/-: This form of data will be used to in the form of "uestionnaires which will be filled by the top management and officials of various enterprises and set3 ups involved in this business.:.
6: M&' D4s*>6-/*.s*6> /04 /. the fund value changes. I would study all that affects these changes.3. D4/-*2s .? EA/496-2 G7*:4: N-34: Mr. on the market conditions and the various ups and downs.*5 : Mutual funds industry has been moving up and a growing sector recently.'nirudh Sharma B7-2*?*5-/*.: IAIAI &ank Dtd PGP/FW/08-10 DF/08/10-F-579 .6: Manager ).-6. It is very important to understand how the various enterprises work towards handling the mutual funds in their respective companiesF *epending...6 ?.9 50.DIVYA KOTHIWAL J7s/*?*5-/*.
I take the opportunity to e!press my sincere gratitude to my pro#ect guide Mr. I am also thankful to all the other managers and employees for taking out time from their busy schedule and guiding me in order to make this pro#ect a success. without whose guidance and support I could not have completed my pro#ect. I e!press my immense gratitude towards all the members of this organiBation. It was a great honour to be associated with a company. 'nirudh Sharma. They really made my learning e!perience the most memorable and respectable one.DIVYA KOTHIWAL A)KNOWLEDGEMENT I sincerely feel that the guidance and support e!tended towards me by all the members of IAIAI was more than I could e!pect. PGP/FW/08-10 DF/08/10-F-579 .
-6*4s *6 I6:*5.. A5@6.< *ata collection and #ob re"uirement 4.5 Instruments in Indian debt market 6. 4.4 Mutual fund types <.DIVYA KOTHIWAL TABLE OF )ONTENTS 1. Dimitations 4.2 Sources of data G. ?isks <.124:>4346/ 2.s*s G.3.< *isadvantages <. T04 -6-2..: 'dvantages <. B-5@>9.: Scope 4.2 -urpose 4.2 ?eturns <.< Scope of study PGP/FW/08-10 DF/08/10-F-579 .4 'bout Small and Medium enterprises 4.G Aurrent investment patterns 4. T04 s/7:.76: 3.G -rocedure of opening a folio 4. M7/7-2 F76:s <. M7/7-2 ?76: 5.: Sampling G.
R4?494654s PGP/FW/08-10 DF/08/10-F-579 .4 Huestionnaire design G.DIVYA KOTHIWAL G. R4s72/s -6: *6/49.6 9. A664A794s 10. ).G -rocedure of data collection 7..6527s*. ?esearch design G.94/-/*.2 Findings 8.6 5.
<> Analysis: *ata are analyBed. :> Collection: *ata must be obtained from relevant sources.DIVYA KOTHIWAL BA)KGROUND My work involved two tasks: I.> Dissemination of information: The findings.Marketing research is defined as the systematic and ob#ective identification. and recommendations are provided in a format that makes this information actionable and directly useful as an input into decision making. 2> Identification: Involves defining the marketing research problem =or opportunity> and determining the information that is needed to address it. implications. and inferences are drawn. Eere is a little background on marketing research: . getting the re"uired information by asking the company to fill the "uestionnaire. interpreted. II.. . Marketing ?esearch and data collection which involved mapping the allotted area. and dissemination of information for the purpose of assisting management in decision making related to the identification and solution of problems =and opportunities> in marketing. PGP/FW/08-10 DF/08/10-F-579 . Dead generation through series of appointments with the prospective company. collection. analysis.
Dike any business. debentures / bonds or money market instruments. $very mutual fund has a goal 3 either growing its assets =capital gains> and/or generating income =dividends> for its investors. PGP/FW/08-10 DF/08/10-F-579 . The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them. This is tantamount to a valuation gain. )ou can then sell your mutual fund units for a profit. :> If the fund sells securities that have increased in price. %hen investors sell these units at prices higher than their purchase price. they stand to make a gain. It is essentially a diversified portfolio of financial instruments 3 these could be e"uities. <> If fund holdings increase in price but are not sold by the fund manager. 's a shareholder. the fundJs unit price increases. the fund has a capital gain. )ou can look at the flowchart to understand in brief as to how mutual funds work. Ine could make money from a mutual fund in three ways: 2> Income is earned from dividends declared by mutual fund schemes from time to time. the risks of a fund and the e!penses associated with fundJs operation directly impact your return. professionally managed basket of securities at a relatively low cost. Thus a Mutual Fund is a suitable investment for the common man as it offers an opportunity to invest in a diversified. The corpus of the fund is then deployed in investment alternatives that help to meet predefined investment ob#ectives. This is reflected in the price of each unit. mutual funds have risks and costs associated with returns.DIVYA KOTHIWAL M7/7-2 F76:s ' Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. *istributions in the form of capital gains =short3term and long3term> and dividends may be passed on =paid> to shareholders as income or reinvested to purchase more shares.
Since return is a common measure of performance. keep in mind that past performance is no guarantee of future results. Since average returns can sometimes KhideK short3term highs and lows. return is calculated assuming that all distributions from the fund are reinvested. three. five. you can use it to evaluate and compare mutual funds within the same fund category. you want to know the fundJs return3its track record over a specified period of time. So what e!actly is KreturnFK ' mutual fundJs return is the rate of increase or decrease in its value over a specific period of time usually e!pressed in the following increments: one. year to date. ' fund that has a high return in one year may have e!perienced losses in other years3these fluctuations may not be apparent in its average return. Returns on Mutual Funds 's an investor. you should evaluate returns for a time period of several years3not #ust one year or less. Cenerally e!pressed as an annualiBed percentage rate. PGP/FW/08-10 DF/08/10-F-579 .DIVYA KOTHIWAL A. %hile a fundJs return shows its track record. and ten year. and since the inception of the fund.
the mutual fund manager will decide when to buy or sell securities. ' stock mutual fund. and obtaining information can be accomplished conveniently by telephone. • ). 's per the stated ob#ectives set forth in the prospectus.DIVYA KOTHIWAL B. the loss maybe offset by other securities that appreciate in value. or online.6-2 M-6->4346/ Mutual funds are managed and supervised by investment professionals.6+46*4654 %ith most mutual funds. changing distribution options. If a few securities in the mutual fund lose value or become worthless. buying and selling shares. Further diversification can be achieved by investing in multiple funds which invest in different sectors or categories. It is possible to lose all or part of your investment • P9. along with prevailing market conditions and other factors. for e!ample. This eliminates the investor of the difficult task of trying to time the market. Spreading your investment across a range of securities can help to reduce risk. This minimiBes the risk attributed to a concentrated position. This cost of managing numerous securities is dispersed among all the investors according to the amount of shares they own with a fraction of each dollar invested used to cover the e!penses of the fund. Advantages of Mutual Funds %hat are the key advantages of mutual fund investingF • D*+49s*?*5-/*.?4ss*. an investor will still need to evaluate a mutual fund based on investment goals and risk tolerance before making a PGP/FW/08-10 DF/08/10-F-579 . This helps to reduce the risk associated with a specific industry or category. and selling securities. mutual funds can eliminate the cost an investor would incur when proper due diligence is given to researching securities. 'lthough a fundJs shareholder is relieved of the day3to3day tasks involved in researching. invests in many stocks 3 hundreds or even thousands. %hat does this meanF Fund managers have more money to research more securities more in depth than the average investor. *iversification may help to reduce risk but will never completely eliminate it. buying. an investor is actually investing in numerous securities. by mail.6 Lsing mutual funds can help an investor diversify their portfolio with a minimum investment. Furthermore. %hen investing in a single fund.
Fees and commissions are determined by the specific fund and the institution that e!ecutes the order. *iversification can help to reduce your risk of loss from holding a single security. unlike a certificate of deposit. &ond funds. could fall and be worth less than the principle initially invested. Investors should always read the prospectus carefully before investing in any mutual fund. • T04 D*+49s*?*5-/*. ?emember. that diversification does not protect you from an overall decline in the market. Mutual fund shares are li"uid and orders to buy or sell are placed during market hours. • N. PGP/FW/08-10 DF/08/10-F-579 . unlike a bank deposit. 's with any type of investment. 'nd. G7-9-6/44s The value of your mutual fund investment. • L*C7*:*/.s/s Ahanging market conditions can create fluctuations in the value of a mutual fund investment.6 P46-2/. There are fees and e!penses associated with investing in mutual funds that do not usually occur when purchasing individual securities directly. mutual funds are not insured or guaranteed by an agency of the L. while a money market fund seeks a stable share price. C.DIVYA KOTHIWAL purchase decision. Fees or commissions may or may not be applicable. government. will not re3pay the principle at a set point in time. • isadvantages R*s@s -6: ). Eowever. too. there are drawbacks associated with mutual funds. but it limits your potential for a Khome runK if a single security increases dramatically in value. orders are not e!ecuted until the close of business when the '8 = et 'verage 8alue> of the fund can be determined. its yield fluctuates. unlike purchasing a bond directly. In addition.S.
ta!es may have to be paid on capital gains. . the shorter your investment time horiBon. The school of thought when investing in mutual funds suggests that the longer your investment time horiBon is the less affected you should be by short3term volatility. and in turn have generated higher long3term returns. should not be compared to a stock fund with below average risk. • D4?*6*6> M7/7-2 ?76: 9*s@ *ifferent mutual fund categories as previously defined have inherently different risk characteristics and should not be compared side by side. Eowever. ?isk refers to the possibility that you will lose money =both principal and any earnings> or fail to make money on an investment. for e!ample. If the fund is purchased in a ta!able account. 't the discretion of the manager=s>. the efficiencies of fund ownership are offset by a combination of sales commissions. stock funds overall have a higher risk/return potential than bond funds. money markets> offer the greatest price stability but have yielded the lowest long3term returns. Investors looking for a fund which incorporates all asset classes may consider a balanced or hybrid mutual fund. ?eading the prospectus will help you to understand the risk associated with that particular fund. If all the asset classes. ItJs important to compare the costs of funds you are considering. PGP/FW/08-10 DF/08/10-F-579 . Eigher risks are usually taken with the e!pectation of higher returns at the cost of increased volatility.DIVYA KOTHIWAL • ). 'sset allocation portfolios are mutual funds that invest in other mutual funds with different asset classes. ' bond fund with below3average risk. +eep track of the cost basis of your initial purchase and new shares that are ac"uired by reinvesting distributions. and operating e!penses. ' fundJs investment ob#ective and its holdings are influential factors in determining how risky a fund is. cash investments =i. Therefore. the more concerned you should be with short3term volatility and higher risk. %hile a fund with higher risk has the potential for higher return. risk and potential return are related. including mutual funds. Ris! $very type of investment. Cenerally speaking. $ven though both funds have low risk for their respective categories. it also has the greater potential for losses or negative returns. redemption fees.e. This is the risk/return trade3off.s/s In some cases. stocks historically have been sub#ect to the greatest short3term price fluctuationsMand have provided the highest long3term returns. involves risk. These funds can be very conservative or very aggressive. &onds typically e!perience more short3term price swings.
and shifted between funds with different asset classes according to market conditions. • • • • • • PGP/FW/08-10 DF/08/10-F-579 . • • )-22 R*s@: The possibility that falling interest rates will cause a bond issuer to redeemMor callMits high3yielding bond before the bondJs maturity date.76/9. dollar against foreign currencies. bond values will go down and vice versa. sold. R*s@: The possibility that political events =a war. ). &ond values are inversely related to interest rates. I6?2-/*. Mutual funds face risks based on the investments they hold. Income risk is greater for a short3term bond fund than for a long3 term bond fund.6 R*s@: The possibility that increases in the cost of living will reduce or eliminate a fundJs real inflation3ad#usted returns. R*s@: The possibility that returns could be reduced for 'mericans investing in foreign securities because of a rise in the value of the L.34 R*s@: The possibility that a fi!ed3income fundJs dividends will decline as a result of falling overall interest rates. R*s@: The possibility that a group of stocks in a single industry will decline in price due to developments in that industry. a bond fund faces interest rate risk and income risk. Similarly. a sector stock fund =which invests in a single industry. )799465. &ond income is also affected by the change in interest rates. a poor harvest> will weaken a countryJs economy and cause investments in that country to decline. financial problems =rising inflation. &ond yields are directly related to interest rates falling as interest rates fall and rising as interest rise. national elections>. Following is a glossary of some risks to consider when investing in mutual funds. or natural disasters =an earth"uake. 'lso called e!change3rate risk. 'lso called default risk.S.DIVYA KOTHIWAL securities are bought. If interest rates go up. ' stock fund that invests across many industries is more sheltered from this risk defined as industry risk. I6/494s/ R-/4 R*s@: The possibility that a bond fund will decline in value because of an increase in interest rates. I65. such as telecommunications> is at risk that its price will decline due to developments in its industry. I6:7s/9. For e!ample. )94:*/ R*s@: The possibility that a bond issuer will fail to repay interest and principal in a timely manner. government default>.
I6+4s/346/ O8=45/*+4 o o o o Crowth Schemes Income Schemes &alanced Schemes Money Market Schemes • O/049 S50434s o o Ta! Saving Schemes Special Schemes Inde! Schemes Sector Specific Schemes DF/08/10-F-579 PGP/FW/08-10 . or Klose money..DIVYA KOTHIWAL • M-6->49 R*s@: The possibility that an actively managed mutual fundJs investment adviser will fail to e!ecute the fundJs investment strategy effectively resulting in the failure of stated ob#ectives. TYPES OF MUTUAL FUND S)HEMES • B.K from the original or invested amount.4s %ide varieties of Mutual Fund Schemes e!ist to cater to the needs such as financial position. The table below gives an overview into the e!isting types of schemes in the Industry. S/975/794 o Ipen 3 $nded Schemes o o Alose 3 $nded Schemes Interval Schemes • B. E. Stock and bond markets tend to move in cycles. M-9@4/ R*s@: The possibility that stock fund or bond fund prices overall will decline over short or even e!tended periods.-2 R*s@: The possibility that an investment will go down in value. with periods when prices rise and other periods when prices fall. risk tolerance and return e!pectations etc. M7/7-2 F76: T. • P9*65*.
some close3ended funds give an option of selling back the units to the mutual fund through periodic repurchase at '8 related prices. 435 years. Such schemes normally invest a ma#or part of their corpus in e"uities. In order to provide an e!it route to the investors.g. S50434: The aim of growth funds is to provide capital appreciation over the medium to long3term.e. Such schemes generally invest in fi!ed income securities such as bonds. Investors can conveniently buy and sell units at et 'sset 8alue = '8> related prices which are declared on a daily basis. Covernment securities and money market instruments. )2. Such funds have comparatively high risks.46 E6:4: S50434s: 'n open3ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. I6+4s/346/ O8=45/*+4 G9. either repurchase facility or through listing on stock e!changes. These mutual funds schemes disclose '8 generally on weekly basis. Such funds are less risky compared to e"uity PGP/FW/08-10 DF/08/10-F-579 .s4 E6:4: S50434s: ' close3ended fund or scheme has a stipulated maturity period e. The fund is open for subscription only during a specified period at the time of launch of the scheme. These schemes do not have a fi!ed maturity period. S/975/794 O. • M7/7-2 F76:s 8.1/0 % EC7*/. corporate debentures. The key feature of open3end schemes is li"uidity.DIVYA KOTHIWAL • M7/7-2 F76:s 8. Crowth schemes are good for investors having a long3term outlook seeking appreciation over a period of time.34 % D48/ O9*46/4: S50434: The aim of income funds is to provide regular and steady income to investors. S$&I ?egulations stipulate that at least one of the two e!it routes is provided to the investor i. I65. 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 e!changes where the units are listed.
preservation of capital and moderate income. M-9@4/ % L*C7*: S50434s: These funds are also income funds and their aim is to provide easy li"uidity. B-2-654: F76:s: The aim of balanced funds is to provide both growth and regular income as such schemes invest both in e"uities and fi!ed income securities in the proportion indicated in their offer documents. ?eturns on these schemes fluctuate much less compared to other funds.64. M. Risk Hierarc ! "# Di##ere$% &'%'a( )'$*s PGP/FW/08-10 DF/08/10-F-579 . etc. government securities. These funds are not affected because of fluctuations in e"uity markets.03 G0N in e"uity and debt instruments. commercial paper and inter3bank call money. '8s of such funds are likely to be less volatile compared to pure e"uity funds. Eowever. These schemes invest e!clusively in safer short3term instruments such as treasury bills. These are appropriate for investors looking for moderate growth. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods. Eowever.DIVYA KOTHIWAL schemes. opportunities of capital appreciation are also limited in such funds. These funds are also affected because of fluctuations in share prices in the stock markets. They generally invest . certificates of deposit.
DIVYA KOTHIWAL "t#ers$ PGP/FW/08-10 DF/08/10-F-579 .
G*2/ F76:s: These funds invest e!clusively in government securities. Covernment securities have no default risk. '8s of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes. I6:4A F76:s: Inde! Funds replicate the portfolio of a particular inde! such as the &S$ Sensitive inde!, S(- S$ 40 inde! = ifty>, etc. These schemes invest in the securities in the same weightage comprising of an inde!. '8s of such schemes would rise or fall in accordance with the rise or fall in the inde!, though not e!actly by the same percentage. S45/.9 S;45*?*5 S50434s: These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents $.g. -harmaceuticals, Software, Fast Moving Aonsumer Coods =FMAC>, -etroleum stocks etc. The returns in these funds are dependent on the performance of the respective sectors/industries. %hile these funds may give higher returns, they are more risky compared to diversified funds. T-A S-+*6> S50434s: These schemes offer ta! rebates to the investors under specific provisions of the Income Ta! 'ct, 26G2 as the Covernment offers ta! incentives for investment in specified avenues. $.g. $"uity Dinked Savings Schemes =$DSS>. -ension Schemes launched by the mutual funds also offer ta! benefits. These schemes are growth oriented and invest pre3dominantly in e"uities. Their growth opportunities and risks associated are like any e"uity3oriented scheme. L.-: .9 N. L.-: F76:s: Doad Fund is one that charges a percentage of '8 for entry or e!it. That is, each time one buys or sells units in the fund, a charge will be payable. This charge is used by the mutual fund for marketing and distribution e!penses. The investors should take the loads into consideration while making investment as these affect their yields/returns. Eowever, the investors should also consider the performance track record and service standards of the mutual fund which are more important. ' no3load fund is one that does not charge for entry or e!it. It means the investors can enter the fund/scheme at '8 and no additional charges are payable on purchase or sale of units.
Eere is a sales sheet of various types of mutual funds as on 'pril :001:
Sales during the month of 'pril, :001 A3.76/ *6 Rs. )9.94s S/975/794 O;46 E6: )2.s4 E6: o. of 'mount o. of 'mount Schemes Schemes <2 <50 G 3 <0 :52 22 256 G 2;< 3 3 <0 4 ::: 24: 45 1 4;2 245 << ;052 22144< <1G1:0 <4: 420550 3 3 ;6 :G4 3 3 <<2 3 3 :6 ;::: 3 3 ;;<0
B-2-654: ELSS FOF I6+4s/*6> O+49s4-s G*2/ GOLD ETF G9.1/0 I65.34 L*C7*:%M.64 , M-9@4/ O/049 ETF Total
T./-2 o. of 'mount Schemes <5 <50 ;2 ;40 G 2;< <0 4 :52 ;25 45 1 15: 245 << ;200 2::554 <1G1:0 <4: 424:00
F. %ro&edure of "pening up a Folio F94s0 P7950-s4: 'fter deciding on the type of scheme, the investor will have to fill in the 'pplication form, attach a payment instrument and submit it at any of the fundsJ collection centers before the cut off time. The investor has to invest in rupees and units will be allotted to him in fractions depending upon the '8.
A::*/*.6-2 P7950-s4: &uying more units either of the same scheme or of a different scheme under the S'M$ FIDII is an additional purchase, which can be done through 'dditional -urchase slips provided along with the account statement. 'fter filling the same, the investor will have to attach a che"ue with it and submit it at any of the collection centers before the cut3off time.
S1*/50 U6*/s: ' switch re"uest will have to be filled in and submitted at any of the collection centers before the cut off time. S%ITAE can be done with either partial or all units under a particular scheme to another scheme as specified by him under the same folio.
R4:443 % R4;7950-s4 U6*/s: If the fund is open ended, the investor has to send the repurchase re"uisition slip, duly completed and signed, to any of our branches. It is possible to lodge repurchase re"uests on the Internet also. The redemption can be done for all units, partial units, or for an amount.
M7/7-2 F76: ).3;-6*4s *6 I6:*ABN AMRO M7/7-2 F76: '& 'M?I Mutual Fund was setup on 'pril 24, :00; with '& 'M?I Trustee =India> -vt. Dtd. as the Trustee Aompany. The 'MA, '& 'M?I 'sset Management =India> Dtd. was incorporated on ovember ;, :00<. *eutsche &ank ' C is the custodian of '& 'M?I Mutual Fund. B*92- S76 L*?4 M7/7-2 F76: &irla Sun Dife Mutual Fund is the #oint venture of 'ditya &irla Croup and Sun Dife Financial. Sun Dife Financial is a golbal organisation evolved in 2152 and is being represented in Aanada, the LS, the -hilippines, Oapan, Indonesia and &ermuda apart from India. &irla Sun Dife Mutual Fund follows a conservative long3term approach to investment. ?ecently it crossed 'LM of ?s. 20,000 crores. B-6@ .? B-9.:- M7/7-2 F76: (BOB M7/7-2 F76:) &ank of &aroda Mutual Fund or &I& Mutual Fund was setup on Ictober <0, 266: under the sponsorship of &ank of &aroda. &I& 'sset Management
The 'MA.s.M7/7-2 F76: I C 8ysya Mutual Fund was setup on February 22. HDF) M7/7-2 F76: E*FA Mutual Fund was setup on Oune <0. ING V. &oard of Trustees. HSB) M7/7-2 F76: ES&A Mutual Fund was setup on May :5. Dtd. 2666 with the same named Trustee Aompany. PGP/FW/08-10 DF/08/10-F-579 . 2661. :00: with ES&A Securities and Aapital Markets =India> -rivate Dimited as the sponsor. I C Investment Management =India> -vt. ES&A Mutual Fund acts as the Trustee Aompany of ES&A Mutual Fund.. :000 with two sponsorersP nemely Eousing *evelopment Finance Aorporation Dimited and Standard Dife Investments Dimited. was incorporated on 'pril G. *eutsche &ank 'C is the custodian. It is a #oint venture of 8ysya and I C.DIVYA KOTHIWAL Aompany Dimited is the 'MA of &I& Mutual Fund and was incorporated on ovember 4. 266:.
The sponsorers for Tata Mutual Fund are Tata Sons Dtd. State &ank of India Mutual Fund has more than ?s. 5. +otak Mahindra Mutual Fund offers schemes catering to investors with varying risk 3 return profiles. 2664 works as the 'MA of Sahara Mutual Fund. of 'merica. -rudential IAIAI Mutual Fund was setup on 2<th of Ictober. 4. Dimited.400 Arores as 'LM.M7/7-2 F76: State &ank of India Mutual Fund is the first &ank sponsored Mutual Fund to launch offshor fund. The investment manager is Tata 'sset Management Dimited and its Tata Trustee Aompany -vt.M7/7-2 F76: +otak Mahindra 'sset Management Aompany =+M'MA> is a subsidiary of +M&D. K. Today it is the largest &ank sponsored Mutual Fund in India.121 investors in its various schemes. -rudential -lc. 211:. 266G with Sahara India Financial Aorporation Dtd.M7/7-2 F76: Tata Mutual Fund =TMF> is a Trust under the Indian Trust 'ct. +M'MA started its operations in *ecember 2661. S-0-9. Tata 'sset Management DimitedJs is one of the fastest in the country with more than ?s. 266< with two sponsorers. S/-/4 B-6@ . It is presently having more than 2. The Trustee Aompany formed is -rudential IAIAI Trust Dtd. It was the first company to launch dedicated gilt scheme investing only in government securities PGP/FW/08-10 DF/08/10-F-579 . and the 'MA is -rudential IAIAI 'sset Management Aompany Dimited incorporated on ::nd of Oune. They have already launched <4 Schemes out of which 24 have already yielded handsome returns to investors. Sahara 'sset Management Aompany -rivate Dimited incorporated on 'ugust <2. The paid3up capital of the 'MA stands at ?s :4. :004> of 'LM.DIVYA KOTHIWAL P97:46/*-2 I)I)I M7/7-2 F76: The mutual fund of IAIAI is a #oint venture with -rudential -lc..66./-@ M-0*6:9. and Tata Investment Aorporation Dtd. and IAIAI Dtd. the India Magnum Fund with a corpus of ?s. T-/. as the sponsor.? I6:*. ::4 cr.M7/7-2 F76: Sahara Mutual Fund was set up on Ouly 21. ow it has an investor base of over 1 Dakhs spread over 21 schemes. appro!imately.50< crores =as on 'pril <0. one of the largest life insurance companies in the LS of '.1 crore. 266<.
S/-6:-9: )0-9/494: M7/7-2 F76: Standard Ahartered Mutual Fund was set up on March 2<. State &ank of India =S&I>.9>-6 S/-624. Standard Ahartered 'sset Management Aompany -vt. :00<. M. $"uity Funds and &alance Funds. It is one of the largest financial services groups in the world. established in Oan 2.. manages the LTI Mutual Fund with the support of LTI Trustee Aompany -rivate Dimited.DIVYA KOTHIWAL U6*/ T97s/ . Its services are also PGP/FW/08-10 DF/08/10-F-579 .M7/7-2 F76: The group. ?eliance Mutual Fund was formed for launching of various schemes under which units are issued to the -ublic with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities. F9-6@2*6 T43. Alosed end Income schemes and Ipen end Fund of Funds schemes to offer.&>. The sponsorers of LTI Mutual Fund are &ank of &aroda =&I&>. LTI 'sset Management Aompany presently manages a corpus of over ?s. Income Funds. Ipen end Eybrid schemes. 2664 as ?eliance Aapital Mutual Fund which was changed on March 22. The sponsor of ?MF is ?eliance Aapital Dimited and ?eliance Aapital Trustee Ao. 'sset Management Funds. :000 sponsored by Standard Ahartered &ank.? I6:*. 211:. They have Ipen end *iversified $"uity schemes. Frnaklin Templeton Investments is a Aalifornia =LS'> based company with a global 'LM of LSQ . Ipen end Income and Di"uid schemes. The Trustee is Standard Ahartered Trustee Aompany -vt. corporations. Ipen end Ta! Saving schemes. M7/7-2 F76: I6:*Morgan Stanley is a worldwide financial services company and its leading in the market in securities. :00. Dtd. It provides customiBed asset management services and products to governments. is the 'MA which was incorporated with S$&I on *ecember :0.:0000 Arore. and Dife Insurance Aorporation of India =DIA>. The schemes of LTI Mutual Fund are Di"uid Funds. :004>. Ipen end Sector $"uity schemes.2666. Morgan Stanley Investment Management =MISM> was established in the year 2654. investment management and credit services. R42*-654 M7/7-2 F76: ?eliance Mutual Fund =?MF> was established as trust under Indian Trusts 'ct.: bn. pension funds and non3profit organisations.24/. Inde! Funds. Investors can buy or sell the Mutual Fund through their financial advisor or through mail or through their website.M7/7-2 F76: LTI 'sset Management Aompany -rivate Dimited. -un#ab ational &ank =. It was registered on Oune <0.. Dimited is the Trustee.06. Dtd. =as of 'pril <0.6 I6:*.
Dtd. Es5. A22*-654 )-. with the corporate office in Mumbai. Its 'MA was incorporated on *ecember 2. 2665. the 'lliance Aapital 'sset Management India =-vt> Dtd. In India it is known as Morgan Stanley Investment Management -rivate Dimited =MSIM India> and its 'MA is Morgan Stanley Mutual Fund =MSMF>. with 'lliance Aapital Management Aorp. of *elaware =LS'> as sponsorer. The Aorporate Iffice of the 'MA is in Mumbai. )-68-6@ M7/7-2 F76: Aanbank Mutual Fund was setup on *ecember 26. B46503-9@ M7/7-2 F76: &enchmark Mutual Fund was setup on Oune 2:. The Trustee Aompany is $scorts Investment Trust Dimited. is the Trustee Aompany and 'MA is Aholamandalam 'MA Dimited.DIVYA KOTHIWAL e!tended to high net worth individuals and retail investors. as the Trustee Aompany. Incorporated on Ictober 2G. Dtd. DIA Mutual Fund was constituted as a Trust in accordance with the provisions of the Indian Trust 'ct. is the 'MA..*/-2 M7/7-2 F76: 'lliance Aapital Mutual Fund was setup on *ecember <0.2. This is the first close end diversified e"uity scheme serving the needs of Indian retail investors focussing on a long3term capital appreciation. 266. 211:. Aholamandalam Trustee Ao. The Trustee is 'A'M Trust Aompany -vt. was setup on Oanuary <. :000 and head"uartered in Mumbai. incorporated on March :. Aanbank Investment Management Services Dtd. and 'MA. It contributed ?s. . &enchmark 'sset Management Aompany -vt. The Trustees of PGP/FW/08-10 DF/08/10-F-579 .9/s M7/7-2 F76: $scorts Mutual Fund was setup on 'pril 24. 2664 with the name $scorts 'sset Management Dimited. 266< is the 'MA. Dtd. LI) M7/7-2 F76: Dife Insurance Aorporation of India set up DIA Mutual Fund on 26th Oune 2616. The Aompany started its business on :6th 'pril 266. 266G with $scorts Finance Dimited as its sponsor. : Arores towards the corpus of the Fund. Dtd. as the sponsorer and &enchmark Trustee Aompany -vt. Dtd.M7/7-2 F76: Ahola Mutual Fund under the sponsorship of Aholamandalam Investment ( Finance Aompany Dtd. :002 with iche Financial Services -vt. )0. 2615 with Aanara &ank acting as the sponsor.
= I'>. Dtd. Dtd. PGP/FW/08-10 DF/08/10-F-579 . GI) M7/7-2 F76: CIA Mutual Fund. Dtd = IA>. 211:. sponsored by Ceneral Insurance Aorporation of India =CIA>. a Covernment of India undertaking and the four -ublic Sector Ceneral Insurance Aompanies. =LII> and is constituted as a Trust in accordance with the provisions of the Indian Trusts 'ct. Dtd =IIA> and Lnited India Insurance Ao. viB. The Iriental Insurance Ao.DIVYA KOTHIWAL DIA Mutual Fund have appointed Oeevan &ima Sahayog 'sset Management Aompany Dtd as the Investment Managers for DIA Mutual Fund. The ew India 'ssurance Ao. ational Insurance Ao.
• S&ope of t#e Study The scope of study is limited to studying the investment patterns and e!posure to mutual funds of SM$s in ehru -lace. Inline *irectories like Oust dial. companyPs contact number. Telephonic calls to fi! an appointment with the concerned person.DIVYA KOTHIWAL T04 S/7:. ?elationship management • *imitations of t#e Study a. companyPs line of work etc. *atabase sometimes given on the net is not updated which leads to wastage of time and effort. Mapping the areas given to us which involves fieldwork and in turn involves gathering information like company name. financial headPs name. Aold calling sometimes doesnPt yield the desired results d. Fundoodata etc. • ata Colle&tion and 'o( Re)uirement The methods that I have employed in collecting data are: • a. PGP/FW/08-10 DF/08/10-F-579 . ot getting enough appointments as the financial heads may refuse to talk to us. c. Sometimes you canPt reach the right person who is actually the decision maker in the organiBation. %urpose of t#e study The purpose of the study is to evaluate how much SM$s have an e!posure to mutual funds and what are their investment patterns. b. d. e. $!isting database given by ?eliance = small proportion> c. b.
DIVYA KOTHIWAL e. Aorporates not revealing true information sometimes f. Small sample siBe PGP/FW/08-10 DF/08/10-F-579 .
*ue protection was accorded to both sectors. which are: • • • Dow capital base Inade"uate e!posure to international environment Inability to face impact of %TI regime PGP/FW/08-10 DF/08/10-F-579 . and particularly for small scale industries from 2642 to 2662. though this list of products is decreasing due to change in industrial policies and climate. It can be observed that by and large. SM$s in India met the e!pectations of the government and developed in a manner. which made it possible for them to achieve the following ob#ectives: • • • • • • • • • Eigh contribution to domestic production Significant e!port earnings Dow investment re"uirements Iperational fle!ibility Docation wise mobility Dow intensive imports Aapacities to develop appropriate indigenous technology Import substitution Technology oriented industries Aompetitiveness in domestic and e!port markets 't the same time one has to understand the limitations of SM$s. Aertain products were reserved for small3scale units for a long time. both planners and government earmarked a special role for small3scale industries and medium scale industries in the Indian economy. till the nation adopted a policy of liberaliBation and globaliBation.DIVYA KOTHIWAL • A(out Small and Medium Enterprises (SMEs) %ith the advent of planned economy from 2642 and the subse"uent policy followed by government of India.
DIVYA KOTHIWAL • • Inade"uate contribution towards ?(* Dack of professionalism In spite of these limitations. SM$s are now conscious of "uality. The following points more clearly brings out why banks and mutual fund companies should focus on SM$s: • • • • Covernment and ?&I pushing for SM$ funding in urban and semi urban areas. PGP/FW/08-10 DF/08/10-F-579 . SM$s have become big producers and e!porters of consumer goods. production efficiencies and costs. etc. Darge corporate are accessing funds directly from the capital markets. the SM$s have made significant contribution towards technological development and e!ports. SM$s have been established in almost all ma#or sectors in the Indian industry such as: • • • • • • • • • • • Food processing 'gricultural inputs Ahemicals ( pharmaceuticals $lectronics Te!tiles and Carments Deather and leather goods Meat products &io3engineering Sports goods -lastics products Aomputer software.
s to the SM$s.DIVYA KOTHIWAL • • • SM$s have a repayment record comparable to the best borrowers. SM$s sector has become a ma#or source of income for the banks and mutual fund companies and is therefore selling like hot cake. 'lthough as we can see that there were various options available in the hands of the people but if we give a good analyBing look at most of these options today and have a comparative evaluation for various investments with reference to the rate of return and the unavoidable evil inflation rate we can see very clearly that in most of these investments the rate of return is very much closer to the inflation PGP/FW/08-10 DF/08/10-F-579 . Aommercial papers. The pro#ect therefore started with the study of the history of mutual fund industry in India and various stages which contributed to its evolution in India and the various factors and developments added at each stage. &ank fi!ed deposits. 's clearly stated above. Sector growing at over 20N per annum. These products have to be made known to the investors for whom they are meant. %hen the thought and research process was started for the first one it was found out that the SM$s has several investment options in their pockets from the very starting like: • • • • Fi!ed interest government bonds. The pro#ect undertaken deals with the marketing of these new and e!isting funds and FM.s available is not a solution3neither for the SM$s nor for the banks. Darge corporate are increasingly outsourcing work to SM$s. &ust #ust making the funds and FM. Share market.
Current +nvestment %attern of SMEs The investment pattern of people whose investment perspective have taken a new turn. has changed a lot and they are looking towards new horiBons of investments.DIVYA KOTHIWAL rate which minimiBes the net increase in the income and increase of the wealth of the people keeping it somewhere around 23<N. So what is re"uired by all the 'MA s and other broking houses is that apart from the normal business they are doing they should also organiBe or sponsor several such seminars in which various prospective clients could be called and all their doubts can be cleared off according to their convenience and they should be encouraged to be a part of this booming Indian economy. Aurrently the chief options available for investment are: • • • • • • • • • Covernment bonds and debentures Aommercial papers and deposits Fi!ed deposits --F ?etirement and -ension schemes $"uity based MF ( $DSS plan *irect trading into stock market Multi commodity e!change ?eal estate ow we can make out that today people are not #ust looking towards a simple and safer saving but they are making attempts to get an investment which can lead for a healthy return along with the security of money and moreover they are PGP/FW/08-10 DF/08/10-F-579 .
These are unsecured negotiable promissory notes. may be this is the reason behind the fast and healthy growth of the MF industry.s*/: Issued by the scheduled commercial banks e!cluding the regional rural banks. So a wise diversification no doubt reduces the net risk and makes the total portfolio a better returning one and obviously a lesser risky.? D4. Eence we can conclude by saying that the present day investor is much wiser and has more number of baskets to keep his eggs in.. +nstruments in t#e +ndian • e(t Mar!et$ )49/*?*5-/4 . Factors affecting the investors while making the portfolio: • • • • • • • • • Time frame of investment ?eturn on investment ?isk3benefit ratio *iversification of risk Ta! benefits ?isk coverage 8alue added features Fle!ibility and liabilities of investments Inflation rate If we analyBe closely we can see that the MF more or less satisfy all the parameters of the present day investor.DIVYA KOTHIWAL diversifying their investment and following the simple policy of don t keep all your eggs in one basket. PGP/FW/08-10 DF/08/10-F-579 .
-/*6> 9-/4 8. The yield is determined on the basis of bids tendered and accepted.DIVYA KOTHIWAL • ).6: : Most of these are in the form of promissory notes transferable by endorsement and delivery.9-/4 :4846/794s: These are issued by companies with physical assets. • T94-s79. Such bonds if issued by Financial Institutions are generally unsecured.+496346/ S4579*/*4s: These are medium to long term interest bearing obligations issued by the Covernment of India and the States through the ?&I..6 B. • ). These are issued mainly by Financial Institutions such as IAIAI/I*&I/IFAI or by commercial &anks • P782*5 S45/. • B-6@ -6: F*6-65*-2 *6s/*/7/*. days.33495*-2 P-.6:s: Short to medium term interest bearing instruments issued by financial corporations.is a short term. • F2. while those issued by -rivate corporations are secured. also issued through an auction procedure. These are issues where the rates are pre3 specified and the investor =a corporate or an individual> only bids for "uantity. They are assigned a credit rating by the rating agencies. as secured instruments in the form of certificates. • G.49: ' A.9. unsecured instrument issued by corporate bodies =public and private> to meet short term working capital re"uirements.6:s : These are medium and long term obligations issued by public sector companies where the PGP/FW/08-10 DF/08/10-F-579 .9 U6:49/-@*6> (PSU) B. The maturity varies between < months to 2 year. ?&I issues T3 &ills for different tenures ranging from 62 days to <G. The ?&I here acts only as a *epository. ' typical maturity ranges from < years to 4 years. B*22s: These are short term obligations issued through the ?&I also by the government of India at a *iscount.
Some -SL bonds Aarry ta! e!emptions.6:-9. D-/. then the data should be classified as primary.refers to information that has previously been gathered by someone other than the researcher and/or for some other purpose than the research pro#ect at hand.DIVYA KOTHIWAL government shareholding is grater than 42N. The minimum maturity is 4 years for ta!able bonds and 5 years for ta! free bonds. %hen deciding if the data to be collected is secondary in nature. ask the following "uestion: %ould the data have been collected as a part of the normal course re"uirementsF If the answer is no.: P9*3-9.refers to information that is developed or gathered by the researcher specifically for the research pro#ect at hand.6:-9.s*s Sour&es of ata *ata are of two types namely . D-/. S45. PGP/FW/08-10 DF/08/10-F-579 .9*3-9. Such bonds are generally not guaranteed by the government and are transferable in the Formby endorsement and delivery T04 A6-2. and s45.
-ER. In our organiBation data was found on the company server. The information may be in a ready to use format or may re"uire processing. E.A* A-A $!ternal data are data that originate e!ternal to the organiBation. it included published material.A* A-A Internal data are data available within the organiBation for which the research is being conducted.-ER. PGP/FW/08-10 DF/08/10-F-579 . This data was found on company websites.DIVYA KOTHIWAL +. online databases and some syndicated services.
we had a large number of representative cases which had structured data collection and we also recommended a final course of action. In my study.2*6> D4s*>6 PGP/FW/08-10 DF/08/10-F-579 . HL' TIT'TI8$ ?$S$'?AE ' research methodology that seeks to "uantify the data and. typically. primary data is the data that I collected by mapping the companies in ehru place and appointments that I had with financial heads who gave valuable information. Sampling S-3.DIVYA KOTHIWAL HL'DIT'TI8$ ?$S$'?AE 'n unstructured. applies some form of statistical analysis Iur research involved "uantity. Oust *ial etc. Secondary data would include the already e!isting database given initially by ?eliance Mutual fund house and also data collected on the internet through websites like Fundoodata. e!ploratory research methodology based on small samples that provides insights and understanding of the problem setting.
24 S*<4 The sample siBe for the pro#ect was taken as !"". and the product categories in which the surveys have been conducted. S-3. This was also done on the basis of convenience sampling. Ma#orly the sample has been taken from ehru place and the ad#oining areas and a couple of samples have been taken from Ikhla Industrial $state PGP/FW/08-10 DF/08/10-F-579 . The scope of this study essentially includes the regions.0*5-2 s5. namely: • • • Ceographical scope -roduct scope Time scope or e!tent of study G4. S5.4 . The market research was based on convenient sampling. The research is categorically classified into three sub3researches on the basis of the products provided by the company.4 The geographical scope covers areas from where the samples have been taken. The scope of the study can be broadly categoriBed into three scopes. areas..>9-.DIVYA KOTHIWAL The sample chosen from the target population for retailers was based on the siBe of the particular area of *elhi as well as the number of retailers present in that particular area. The customers were sampled on the basis of convenience sampling.? S/7:..
'nd the procedure for data collection to be adopted depends on the re"uirements of the research. Eence we reviewed information in prior records. we needed to obtain appropriate permission or clearance to collect information from people or other sources. &efore going further to decide the method of data collection. R42*-8*2*/.2245/*.6 *ata collection means gathering information to address those critical evaluation "uestions that may be in the minds of the company/ researcher. 4. For the purpose of data collection.5.:75/ s5. . P9./ T4s/*6>: It was essential to test the information collection instrument or the process we designed. A+-*2-8*2*/. It may also be a concern if our presence during data collection may possibly alter the results. <.: ?eactivity refers to how the way of asking a "uestion would alter the response we would get.: %ill the evaluation process designed consistently measure what we want it to measureF That is whether multiple interviews.54:794 ?. P*2. :./.: %e realiBed that there may be some information already available that can help answer some "uestions or guide the development of new guidelines. we identified some of the important issues in this regard. reports. P9.9 D-/.. will consistently measure the same thing each timeF In whatever PGP/FW/08-10 DF/08/10-F-579 . and summaries.DIVYA KOTHIWAL P9.4 The product scope features the product category in which the research has been carried out.2 N44:s: In many situations. or observers. database provided by the company as well as cold callings.. I first identified the area that I would work in and in that I identified the companies which were capable of making an investment who had decent turnover so that they could have the capacity to invest atleast 2 crore which is the minimum amount for institutional investment. R4-5/*+*/. The product category of this study is mutual funds and specifically highly li"uid debt schemes catering to corporate clients.). settings.. This was done with the help of internet. These were: 2.
0uestionnaire ' "uestionnaire is a structured techni"ue for data collection that consists of a series of "uestions that a respondent answers. PGP/FW/08-10 DF/08/10-F-579 . we adopted the following methods for data collection: 2. will people interpret our "uestions the same way each timeF G.: 8alidity means will the information collection methods designed produce information that measures what we re"uire to measureF %e should be sure that the information we collect is relevant to the purpose in hand. V-2*:*/. :. The "uestionnaire comprised of multiple choice.DIVYA KOTHIWAL instrument we design. %ersonal +ntervie/ 'n interview is called personal when the Interviewer asks the "uestions face3to3 face with the Interviewee. These were mainly of the form of structured interviews. numeric open3ended as well as te!t3open ended "uestions. depending on the nature of the "uery. Eaving kept these issues in mind. -ersonal interviews were conducted in companies where I went for the appointment.
94/-/*. a copy of which is there in this report. PGP/FW/08-10 DF/08/10-F-579 . Aompanies at ehru place which is considered to be the IT hub of *elhi were consciously chosen for the purpose of study as they house ma!imum number of companies in the city across various segments. The analysis is based on the "uestionnaire.6 In this section we present all the facts and figures along with analysis collected during the market research activities performed during the course of thesis work. The numbers of companies covered have already been mentioned =:00>. The primary purpose of the study was to understand the current investment patterns of SM$s and their e!posure to mutual funds.DIVYA KOTHIWAL R4s72/s -6: I6/49. The software used to analyse the data is Microsoft $!cel and Stats software.
PGP/FW/08-10 DF/08/10-F-579 . ' diversified portfolio would mean investing in more than one instruments. e!t "uestion will prove whether it is true or not. Figure 22 tells us that about how companies invest their money at present in the market.9/?. %e see that about 44N of the companies had diversified portfolio and . From the information given by IAIAI we are here assuming that most companies are investing in either bank F*s or share market.2*.DIVYA KOTHIWAL -#e Findings D*+49s*?*4: P.4N didnPt. ow which type of instruments are we talking about here remains to be seen which will come up in later "uestions.
ma#ority i. I6+4s/s I6 Instruments Aompany invests in as you can see.? /04 5.e..2s ). about G2N of investments were either done in e"uity or bank F*s where in &ank F*Ps share is <:N which actually proves our hypothesis earlier on based on past information.9/-6/ 94s72/D ..1s -6.? 37/7-2 ?76:s *6 SMEs.DIVYA KOTHIWAL I6+4s/346/ T.-6*4s *6+4s/ *6 37/7-2 ?76:s 10*50 =7s/*?*4s ./04s*s s0. ow if companies are ma#orly investing in F*s and $"uity then Savings and ?eturns should be the two biggest factors in compelling the company to invest.464/9-/*.3.? .62. T0*s ?*>794 -2s.6 .79 0. It may be because of this only that ?eliance Mutual Fund EousePs Fi!ed Maturity -lan which is on the similar line as bank F* is selling like hot cake.. $EF . PGP/FW/08-10 DF/08/10-F-579 .1*6> 2-5@ .3./049 *3. s0.-6..
9 *6+4s/346/ 's you can see from the above figure .DIVYA KOTHIWAL R4-s. This is an early indication that companies are not much aware about the safety and steady retruns given by mutual funds.4N of companies invests for savings purpose and <0N returns which confirms. This might indicate that companies are not aware about how safe mutual funds are on the debt side. This could be because of companies investing in bank F*s and e"uity.6 ?. PGP/FW/08-10 DF/08/10-F-579 . R-6@ I6s/97346/s If you look at the ranking you can make out that ma#orly companies are opting for either bank F*s =64> or ?&I bonds =GG> which are safe as 2st rank or : nd or prefer for e"uities =22G>.
6> /493 *6+4s/346/ 's you can see from the above figure that mainly companies are going for long term investments which indicates two things.9 L.9/ *6+4s/346/ . *6+4s/346/ The above figure shows the fre"uency of company investment where you can see ma#orly companies do it once in 24 days or once in a week. .-6. companies are not aware about highly li"uid debt funds that we have in mutual funds where in you can PGP/FW/08-10 DF/08/10-F-579 . Ine.? 5.3. S0.DIVYA KOTHIWAL F94C7465.
EA.DIVYA KOTHIWAL invest even for one day and get return on it. Second. *6+4s/346/s 's we can see from the above figure that undoubtedly companies are e!pecting :0N and above return on their e"uity investment which is again reasonable as capital gain has been increased to 24N recently. PGP/FW/08-10 DF/08/10-F-579 . it gives an indication that companies are sticking to longer term &ank Fi!ed deposits. EA.45/4: 9-/4 .? 94/796 .6 D48/ *6+4s/346/s Mainly companies are e!pecting return on debt investment to be above GN which is reasonable enough.45/4: 94/796 .6 EC7*/.
I6+4s/*6> *6 M7/7-2 F76:s 's you can see those who are already investing know the benefits provide by mutual funds.DIVYA KOTHIWAL A1-9464ss L4+42 *? A294-:. .. Its not only with the relationship managers. but it applies to all segments.2N of the companies are investing through relationship managers. If you want your company to grow you have to have PGP/FW/08-10 DF/08/10-F-579 . Mutual funds offer li"uidity steady returns and ta! advantage as well.s4 -:+*54 :. So this highlights the point that relationship management is "uite necessary if you want to bring in business for the company. O6 10.7 *6+4s/ This figure shows role of relationship management to an e!tent as .
9 5. 's earlier on we had a chart which showed those who invested in mutual funds knew about li"uidity in mutual funds. *6+4s/*6> *6 D48/ M7/7-2 F76:s Eere you can clearly see that mainly companies are investing in debt mutual funds because it offers steady returns and li"uidity =total35.-6.6 ?. T.? 37/7-2 ?76: .-6.3. *6+4s/s *6 This again confirms the hypothesis that there is lack of awareness about highly li"uid debt schems for corporates as you can see companies are heavily investing in e"uity =G:N> which actually brings in another interesting point in the forefront.4 .. and they also knew everything about mutual funds. This figure is actually bringing in one of the limitations of the study which is wrong information provided by the company due to either lack of knowledge or some other reason.3. R4-s.7 5.DIVYA KOTHIWAL good relationship with the client from whom you are thinking of bringing in the business.N> PGP/FW/08-10 DF/08/10-F-579 . &ut ehre the figure are giving contradictory views..
3. ).-6.6 ?. 37/7-2 ?76:s 's you can see mainly companies are investing in e"uity mutual funds for greater return over inflation which currently is a big factor in India.9 *6+4s/*6> *6 4C7*/./ *6+4s/*6> *6 37/7-2 ?76:s 845-7s4: PGP/FW/08-10 DF/08/10-F-579 . 6.DIVYA KOTHIWAL R4-s.
W..7 5.6s*:49 *6+4s/*6> *6 37/7-2 ?76:s *?: PGP/FW/08-10 DF/08/10-F-579 .72: .DIVYA KOTHIWAL 's you can see the reason for not investing is dipersed but ma#orly its either because of lack of knowledge or low returns as compared to share market which again strengthens our claim of companies investing in e"uities more than mutual funds.
PGP/FW/08-10 DF/08/10-F-579 . low risk. steady returns.DIVYA KOTHIWAL Since mutual funds provides li"uidity.ta! benefits. once companies are made aware about this they are either ready to invest in them or can think of investing.
DIVYA KOTHIWAL A1-9464ss -8. PGP/FW/08-10 DF/08/10-F-579 .7/ 579946/ -55.27s 4-96*6> *6/494s/ 's it is clear from the above figure that mostly people are not aware about current account surplus earning interest for even one day =G2N> which again strengthens our argument that companies are not aware about li"uid funds that much...7/ 8464?*/s: 's you can clearly see that most of the companies =16N> are ready to invest if given proper information about mutual funds which is a very important point. So this gives mutual fund companies motivation to e!plore even more areas where they can find prospective clients.76/ s79.7 *6+4s/ *6 37/7-2 ?76:s *? . W.72: .7 @641 -8.
N companies want to know more about mutual funds.DIVYA KOTHIWAL W.7/ 37/7-2 ?76:s 's you can see the eagerness of companies once they are provided the right information about mutual funds..94 -8.7 2*@4 /. PGP/FW/08-10 DF/08/10-F-579 .72: . @6. It states that 6. This is a good indication for mutual fund houses that are always in a hunt to find new corporate.1 3.
PGP/FW/08-10 DF/08/10-F-579 . though the sample siBe is small but it still gives an indication that the sector in which an SM$ is in will affect its decision to whether or not invest in mutual funds but a conclusive research needs to be done on this. on mutual fund investors are mainly investing their money in bank fi!ed deposits of longer maturity when they can get better returns if they park money in mutual funds.6 The conclusion is that currently a lot of companies are still not fully informed about the benefits that are associated with investing in mutual funds.DIVYA KOTHIWAL ). The ones which are investing are investing more in e"uity schemes which shows that they donPt know much about the highly li"uid debt schemes that mutual fund provides. Its now the #ob of mutual fund houses to increase their efforts even more and try to create more and more awareness about mutual funds. 'lso.6527s*.
)our company primarily invest for Tax Benefits Returns Liquidity a!in"s %ny &t$er 'P(ease )e*ify+ PGP/FW/08-10 DF/08/10-F-579 . Fixed De)&sit -utua( Funds RB. B&nds #t$ers $"uity /quities <.DIVYA KOTHIWAL A664A794 In the anne!ure I am attaching the "uestionnaire which used for analysis and interpretation: ' Study In Investment -attern of Small ( Medium $nterprise =SM$> Segment =Focus on Mutual Funds> ame: RRRRRRRRRRRRRRRRRRRRRRRRRR Aompany: RRRRRRRRRRRRRRRRRRRRRRRRRR *esignation: RRRRRRRRRRRRRRRRRRRRRRRRRR Aontact umber: RRRRRRRRRRRRRRRRRRRRRRRRRR 2. %hich are the investment tools your company invests inF Ban. *oes your company have a diversified portfolioF 0es 1& :.
Ince in < Months e. &elow . Fixed De)&sit RB.N c. c. Ince a Month d. 're you aware of the various schemes offered by Mutual FundsF *o you know that Mutual Funds offers Di"uidity to your fundsF *o you know that Mutual Funds offers steady returnsF *o you know you can get Ta! 'dvantages by investing in Mutual FundsF 0es 0es 0es 0es 1& 1& 1& 1& PGP/FW/08-10 DF/08/10-F-579 .N b. 'bove :0N 6. %hat is the fre"uency of your companyPs investmentF a. ?ank the investments options according to your companyPs preference of Investment: Ban. b.DIVYA KOTHIWAL . Ince in G Months f. GN35N d. 4N 3 6N b. Short3term b. %hat is the e!pected rate of return of your company from debt investmentsF a.. Ince in 24 *ays c. %hat is the e!pected rate of return of your company from e"uity investmentsF a. Dong3term investments =-lease specify the period> RRRRRRRRRRRRRRRRRRRRR 5. *oes your company go in for: a. Ince a %eek b. d. If your company invests in mutual finds: a. Ince a )ear G. 24N 3 :0N d. 20N 3 2. . B&nds -utua( Funds /quities %ny &t$er 'P(ease )e*ify+ 4.N34N c. 'bove 5N 1.
%ould you invest in Mutual Funds for your company if it offered =)/ > i> Creater Ta! &enefits vis3S3vis Ithers.nf(ati&n %ny &t$er i. If your company does not invest in Mutual Funds: a. )our company invests in *ebt Mutual Funds because it offers: teady Returns Ris. . )our company invests in $"uities Mutual Funds because it offers: 4i"$er Returns L&n" Ter6 5a)ita( Gains Returns3. -iti"ati&n Liquidity %ny #t$er Tax Benefits h.DIVYA KOTHIWAL e. <. iii> Investment for a Shorter *uration. ii> Creater Di"uidity vis3S3vis Ithers.. $ven for Ine *ay iv> Steady ?eturns v> et ?eturns &etter than a &ank Fi!ed *eposit with Eigh Di"uidity vi> *iversification of -ortfolio vii> MinimiBation of ?isks PGP/FW/08-10 DF/08/10-F-579 . %hich type of Mutual Fund does your company primarily invest inF g. -rimarily on whose e!ternal advice do you investF 2. :. 4. )our company does not invest in Mutual Funds because of i> &itter -ast $!perience ii> Dack of +nowledge iii> Dack of Aonfidence in Service &eing -rovided iv> *ifficulty in Selection of Schemes v> Inefficient Investment 'dvisors vi> Dow ?eturns as compared to Share Market 0es 0es 0es 0es 0es 1& 1& 1& 1& 1& b. De2t &ank *istributor 'gent *irect Investment ?M /quities Ba(an*ed f.nf(ati&n Wea(t$ 5reati&n Tax %d!anta"e %ny #t$er 4i"$er Returns t$an de2t Tax %d!anta"e funds Returns3. )our company invests in &alanced Mutual Funds because it offers: 20.
Ta! &enefits. *iversification of portfolio.DIVYA KOTHIWAL 22. Di"uidity. %ould you be interested to know more about Mutual FundsF 0es 1& PGP/FW/08-10 DF/08/10-F-579 .. Desser risk etc.If Mutual Funds offer you Steady ?eturns. 're you aware that current account surpluses can also earn interest by parking in Mutual Funds even for one dayF 0es 1& 2:. . would you consider it as an investment option in the future for your companyF 0es 1& 2<.
com www. Statistics For Management www.worldbank.mutualfundsindia.com ?ichard I. ?ubin Seventh edition.amfiindia.DIVYA KOTHIWAL R4?494654s www. *avid S.org PGP/FW/08-10 DF/08/10-F-579 . Devin.
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