This document provides a summary of a study conducted on customer perception of private mutual funds offered by HSBC in India. It begins with an introduction to mutual funds and their concepts. It then discusses the industry profile and profiles HSBC as the company studied. The objectives and limitations of the study are outlined. The research methodology used includes a literature review, empirical analysis using a questionnaire, and data analysis using statistical tools. Key findings indicate customers' confidence levels in HSBC funds and strategies to attract more investors. Recommendations are provided to improve products and services.
This document provides a summary of a study conducted on customer perception of private mutual funds offered by HSBC in India. It begins with an introduction to mutual funds and their concepts. It then discusses the industry profile and profiles HSBC as the company studied. The objectives and limitations of the study are outlined. The research methodology used includes a literature review, empirical analysis using a questionnaire, and data analysis using statistical tools. Key findings indicate customers' confidence levels in HSBC funds and strategies to attract more investors. Recommendations are provided to improve products and services.
This document provides a summary of a study conducted on customer perception of private mutual funds offered by HSBC in India. It begins with an introduction to mutual funds and their concepts. It then discusses the industry profile and profiles HSBC as the company studied. The objectives and limitations of the study are outlined. The research methodology used includes a literature review, empirical analysis using a questionnaire, and data analysis using statistical tools. Key findings indicate customers' confidence levels in HSBC funds and strategies to attract more investors. Recommendations are provided to improve products and services.
A Study on the Customer Perception of Private utua!
Funds " Strate#ies to attract investors$ At A REPORT S%&ITTE' IN PARTIAL F%LFILLENT OF T(E RE)%IREENTS OF &A PRO*RAE +CLASS OF ,--./ INC ASI0 ANNA NA*AR1 UNDER THE GUIDANCE OF Prof. R. JAYAPALAN Faculty Member INC ASIM, ANNA NAGAR. Submitted By S1(EALAT(A !NBCA"#$ MBA %&""!'&""() CERTIFICATE T*i+ i+ t, certi-y t*at t*e Ma.a/eme.t T*e+i+ titled 0A STUD1 ON THE CUSTOMER 2ERCE2TION ON 2RI3ATE MUTUA4 FUNDS 5 STRATEGIES TO ATTRACT IN3ESTORS6 Submitted by S. HEMA4ATHA, E.r,ll N,. !NBCA"#$ duri./ +eme+ter I3 ,- t*e MBA 7r,/ram %T*e Cla++ ,- &""() emb,die+ ,ri/i.al 8,r9 d,.e by *er.
Faculty Su7er:i+,r Name %i. ca7ital+) Mr.R. ;A1A2A4AN De+i/.ati,. FACU4T1 SU2ER3ISOR Cam7u+ ICFAI NATIONA4 CO44EGE, ANNANAGAR, CHENNAI Ta2!e of Contents DEC4ARATION AC<NO=4EDGEMENTS ABSTRACT INTRODUCTION INDUSTR1 2ROFI4E COM2AN1 2ROFI4E OB;ECTI3ES 4IMITATIONS OF THE STUD1 RESEARCH DESIGN > METHODO4OG1 RE3IE= OF 4ITERATURE EM2IRICA4 ANA41SIS DATA AN41SIS AND INTER2RETATION S=OT ANA41SIS FINDINGS SUGGESTIONS CONC4USION ANNE?URE REFERENCES 'ECLARATION I *ereby declare t*at t*e 7r,@ect 8,r9 e.titled 0A Study on the C%STOER PERCEPTION ON PRI3ATE %T%AL F%N'S " STRATE*IES TO ATTRACT IN3ESTORS6 +ubmitted t, t*e ICFAI NATIONA4 CO44EGE, i+ a rec,rd ,- a. Ori/i.al 8,r9 d,.e by me u.der t*e /uida.ce ,- Mr.R. ;A1A2A4AN, Faculty Member, ICFAI NATIONA4 CO44EGE, ANNA NAGAR a.d t*i+ 7r,@ect 8,r9 8a+ .,t 7er-,rmed ,. t*e ba+i+ -,r t*e a8ard ,- a.y De/ree ,- di7l,ma>a++,ciate +*i7>-ell,8+*i7 a.d +imilar 7r,@ect i- a.y. 24ACE DATE %S.HEMA4ATHA) AC4NO5LE'*EENT I am /rate-ul t, my Faculty /uide r1R1 6A7APALAN -,r *i+ 9i.d c,,7erati,. i. t*e c,m7leti,. ,- my 7r,@ect. He *a+ *el7ed me by /uidi./ t*i+ T*e+i+ a.d by t*e m,ral +u77,rt t, d, my 7r,@ect. I am /rate-ul t, AHSBC, C*e..aiB -,r /i:i./ me a c*a.ce t, 8,r9 -,r t*eir c,m7a.y. I am :ery /rate-ul t, my 2are.t+, Hu+ba.d, Dau/*ter+, a.d re+t ,- my -amily member+ -,r t*eir ble++i./+ a.d c,,7erati,. at e:ery +ta/e ,- my 7r,@ect. A.d my +7ecial t*a.9+ t, my -rie.d+ -,r t*eir c,.+tructi:e +u//e+ti,.+, 8*ic* *el7ed me t, im7r,:e my 7r,@ect a.d ma9e it m,re 7r,-e++i,.al. I t*a.9 eac* a.d e:ery 7er+,. 8*, i+ re+7,.+ible directly ,r i.directly i. t*e c,m7leti,. ,- my 7r,@ect +ucce++-ully. 4a+t but .,t lea+t my +alutati,.+ t, G,d almi/*ty 8*, *a+ ble++ed me t, be +ucce++-ul all t*r,u/* my li-e. 24ACE DATE %S.HEMA4ATHA) C(APTER 8 9 91 A&STRACT ,1 PRO&LE I'ENTIFICATION A&STRACT T*e 7r,@ect deal+ 8it* t*e +tudy ,- Cu+t,mer+ 2erce7ti,. ,- 7ri:ate mutual -u.d+ 7articularly i. HSBC, C*e..ai. T*e +tudy al+, -,cu+e+ t, -i.d t*e i.:e+t,rB+ ,7i.i,. ab,ut t*e mutual -u.d+ ,--ered by t*e c,m7a.y. T*e 7r,duct+ a.d +er:ice+ ,--ered by t*e c,m7a.y are e:aluated a.d rec,mme.dati,.+ are +u//e+ted t, im7r,:e t*em. It i.te.d+ t, -i.d t*e +trate/ie+ ,- t*e c,m7a.y t, attract i.:e+t,r+ i. mutual -u.d+. T*i+ +tudy i.te.d+ t, -i.d t*e c,.-ide.ce ,- cu+t,mer+ i. HSBC mutual -u.d+ t*r,u/* a Cue+ti,..aire. T*i+ +tudy i+ carried ,ut t, 9.,8 t*e /r,8t* ,- mutual -u.d+ i. t*e 7ri:ate +ect,r +i.ce UTI *ad t*e m,.,7,ly -,r a l,./ time. Hy7,t*e+i+ i+ -,rmed t, -i.d i- t*e +am7le ta9e. re7re+e.t+ t*e 7,7ulati,.B+ deci+i,.. 4ater a. a.aly+i+ i+ d,.e t*r,u/* c*art+ a.d table+ a.d re+ult+ are tabulated. C*i +Cuare a.d Ra.9 C,rrelati,. met*,d+ are u+ed t, -i.d t*e +am7li./ e--ecti:e.e++. T*e -i.di./+ are .,ted a.d a77r,7riate rec,mme.dati,.+ /i:e. PRO&LE I'ENTIFICATION T*e ,ri/i. ,- t*e mutual -u.d+ i.du+try /,e+ bac9 t, t*e time 8*e. mutual -u.d 8a+ i.tr,duced by UTI i. t*e year D($#. T*,u/* t*e /r,8t* *a+ bee. relati:ely +l,8, it accelerated +i.ce D(E! 8*e. t*ere 8ere 7layer+ ,ut+ide t*e UTI, 8*, e.tered t*e i.du+try. I. t*e 7a+t decade, I.dia. mutual -i.d i.du+try *ad +ee. a remar9able im7r,:eme.t b,t* Cuality 8i+e a.d Cua.tity 8i+e. Be-,re t*e e.d ,- t*e m,.,7,ly i. mar9et, t*e A++et+ U.der Ma.a/eme.t %AUM) 8a+ R+.$! billi,.. Entry of Private Sector T*e 7ri:ate +ect,r e.try t, t*e -u.d -amily rai+ed t*e AUM t, R+. F!"b. i. Marc* D((# a.d till A7ril &""F, it reac*ed t*e *ei/*t ,- D,GF"b.. 2utti./ t*e AUM ,- t*e I.dia. Mutual Fu.d+ I.du+try i.t, c,m7ari+,., t*e t,tal ,- it i+ le++ t*a. t*e de7,+it+ ,- SBI al,.e, c,.+titute le++ t*a. DDH ,- t*e t,tal de7,+it+ *eld by t*e I.dia. ba.9i./ i.du+try.
T*e mai. rea+,. ,- it+ 7,,r /r,8t* i+ t*at t*e mutual -u.d i.du+try i. I.dia i+ .e8 i. t*e c,u.try. 4ar/e +ecti,.+ ,- I.dia. i.:e+t,r+ are yet t, be educated 8it* t*e c,.ce7t. He.ce, it i+ t*e 7rime re+7,.+ibility ,- all mutual -u.d c,m7a.ie+, t, mar9et t*e 7r,duct c,rrectly abrea+t ,- +elli./. Entry of (S&C utua! Funds I. t*i+ t*e+i+, it i+ i.te.ded t, -i.d ,ut 8*et*er HSBC Mutual -u.d+ *a:e bee. +ucce++-ul i. reac*i./ cu+t,mer+ a.d 8*et*er t*ey are +ati+-ied 8it* t*e 7er-,rma.ce ,- t*e :ari,u+ 7r,duct+ a.d +er:ice+ ,--ered by t*e c,m7a.y. T*e +trate/ie+ t*at are -,ll,8ed by t*e c,m7a.y t, 7r,m,te a8are.e++ am,./ t*e cu+t,mer+ are al+, +tudied. =*ere t*ere i+ a /a7 am,./ actual a.d de+ired 7er-,rma.ce, t*e +,luti,.+ are /i:e. a-ter a.aly+i+. C(APTER 8 , ,19 INTRO'%CTION ,1, IN'%STR7 PROFILE ,1: COPAN7 PROFILE ,19 INTRO'%CTION %T%AL F%N'S 8 CONCEPT A Mutual Fu.d i+ a tru+t t*at 7,,l+ t*e +a:i./+ ,- a .umber ,- i.:e+t,r+ 8*, +*are a c,mm,. -i.a.cial /,al. T*e m,.ey t*u+ c,llected i+ t*e. i.:e+ted i. ca7ital mar9et i.+trume.t+ +uc* a+ +*are+, debe.ture+ a.d ,t*er +ecuritie+. T*e i.c,me ear.ed t*r,u/* t*e+e i.:e+tme.t+ a.d t*e ca7ital a77reciati,. realiIed i+ +*ared by it+ u.it *,lder+ i. 7r,7,rti,. t, t*e .umber ,- u.it+ ,8.ed by t*em. T*u+ a Mutual Fu.d i+ t*e m,+t +uitable i.:e+tme.t -,r t*e c,mm,. ma. a+ it ,--er+ a. ,77,rtu.ity t, i.:e+t i. a di:er+i-ied, 7r,-e++i,.ally ma.a/ed ba+9et ,- +ecuritie+ at a relati:ely l,8 c,+t. T*e -l,8 c*art bel,8 de+cribe+ br,adly t*e 8,r9i./ ,- a mutual -u.d Mutual Fu.d C*art O7erati,. Fl,8 A mutual -u.d i+ e++e.tially a di:er+i-ied 7,rt-,li, ,- -i.a.cial i.+trume.t+ ' t*e+e c,uld be eCuitie+, debe.ture+ > b,.d+ ,r m,.ey mar9et i.+trume.t+. A mutual -u.d i+ created by 7,,li./ t,/et*er c,.tributi,.+ -r,m :ari,u+ i.:e+t,r+. T*e c,r7u+ ,- t*e -u.d i+ t*e. de7l,yed i. i.:e+tme.t alter.ati:e+ t*at *el7 t, meet 7rede-i.ed i.:e+tme.t ,b@ecti:e+. T*e -u.d %a.d t*r,u/* it, it+ i.:e+t,r+) recei:e+ *el7 i. ac*ie:i./ t*e c,mm,. i.:e+tme.t ,b@ecti:e+ -r,m it+ -u.d ma.a/er %.,rmally a. a++et ma.a/eme.t c,m7a.y). T*e -u.d c,m7e.+ate+ it+ -u.d ma.a/er t*r,u/* a -ee, a.d al+, bear+ t*e ,t*er eJ7e.+e+ i.curred i. ma.a/i./ it. T*e i.c,me ear.ed t*r,u/* t*e+e i.:e+tme.t+, a.d t*e ca7ital a77reciati,. realiIed by t*e -u.d, are +*ared by it+ i.:e+t,r+ i. 7r,7,rti,. t, t*e .umber ,- u.it+ ,- t*e -u.d ,8.ed by t*em %7r, rata). Types of utua! Funds Mutual -u.d +c*eme+ may be cla++i-ied ,. t*e ba+i+ ,- t*eir +tructure a.d it+ i.:e+tme.t ,b@ecti:e &y Structure; Open<ended Funds A. O7e.'e.ded Fu.d i+ ,.e t*at i+ a:ailable -,r +ub+cri7ti,. all t*r,u/* t*e year. T*e+e d, .,t *a:e a -iJed maturity. I.:e+t,r+ ca. c,.:e.ie.tly buy a.d +ell u.it+ at Net A++et 3alue %NA3) related 7rice+. C!ose<ended Funds A Cl,+e'e.ded Fu.d *a+ a +ti7ulated maturity 7eri,d, 8*ic* /e.erally ra./e+ -r,m # t, DG year+. T*e -u.d i+ ,7e. -,r +ub+cri7ti,. ,.ly duri./ a +7eci-ied 7eri,d. I.:e+t,r+ ca. i.:e+t i. t*e +c*eme at t*e time ,- t*e i.itial 7ublic i++ue a.d t*erea-ter t*ey ca. buy ,r +ell t*e u.it+ ,- t*e +c*eme ,. t*e St,c9 EJc*a./e+, i- t*ey are li+ted. T*e mar9et 7rice at t*e +t,c9 eJc*a./e c,uld :ary -r,m t*e +c*emeK+ NA3 ,. acc,u.t ,- dema.d a.d +u77ly +ituati,., u.it *,lder+K eJ7ectati,.+ a.d ,t*er mar9et -act,r+. &y Investment O2=ective; *ro>th Funds T*e aim ,- /r,8t* -u.d+ i+ t, 7r,:ide ca7ital a77reciati,. ,:er t*e medium t, l,./ term. Suc* +c*eme+ .,rmally i.:e+t a ma@,rity ,- t*eir c,r7u+ i. eCuitie+. Gr,8t* +c*eme+ are ideal -,r i.:e+t,r+ 8*, *a:e a l,./'term ,utl,,9 a.d are +ee9i./ /r,8t* ,:er a 7eri,d ,- time. Income Funds T*e aim ,- I.c,me Fu.d+ i+ t, 7r,:ide re/ular a.d +teady i.c,me t, i.:e+t,r+. Suc* +c*eme+ /e.erally i.:e+t i. -iJed i.c,me +ecuritie+ +uc* a+ b,.d+, c,r7,rate debe.ture+ a.d G,:er.me.t +ecuritie+. I.c,me Fu.d+ are ideal -,r ca7ital +tability a.d re/ular i.c,me. Ca7ital a77reciati,. i. +uc* -u.d+ may be limited, t*,u/* ri+9+ are ty7ically l,8er t*a. t*at i. a /r,8t* -u.d. &a!anced Funds T*e aim ,- Bala.ced Fu.d+ i+ t, 7r,:ide b,t* /r,8t* a.d re/ular i.c,me. Suc* +c*eme+ 7eri,dically di+tribute a 7art ,- t*eir ear.i./ a.d i.:e+t b,t* i. eCuitie+ a.d -iJed i.c,me +ecuritie+ i. t*e 7r,7,rti,. i.dicated i. t*eir ,--er d,cume.t+. T*i+ 7r,7,rti,. a--ect+ t*e ri+9+ a.d t*e retur.+ a++,ciated 8it* t*e bala.ced -u.d ' i. ca+e eCuitie+ are all,cated a *i/*er 7r,7,rti,., i.:e+t,r+ 8,uld be eJ7,+ed t, ri+9+ +imilar t, t*at ,- t*e eCuity mar9et. Bala.ced -u.d+ 8it* eCual all,cati,. t, eCuitie+ a.d -iJed i.c,me +ecuritie+ are ideal -,r i.:e+t,r+ l,,9i./ -,r a c,mbi.ati,. ,- i.c,me a.d m,derate /r,8t*. oney ar?et Funds T*e aim ,- M,.ey Mar9et Fu.d+ i+ t, 7r,:ide ea+y liCuidity, 7re+er:ati,. ,- ca7ital a.d m,derate i.c,me. T*e+e +c*eme+ /e.erally i.:e+t i. +a-er +*,rt' term i.+trume.t+ +uc* a+ Trea+ury Bill+, Certi-icate+ ,- De7,+it, C,mmercial 2a7er a.d I.ter'Ba.9 Call M,.ey. Retur.+ ,. t*e+e +c*eme+ may -luctuate de7e.di./ u7,. t*e i.tere+t rate+ 7re:aili./ i. t*e mar9et. T*e+e are ideal -,r c,r7,rate a.d i.di:idual i.:e+t,r+ a+ a mea.+ t, 7ar9 t*eir +ur7lu+ -u.d+ -,r +*,rt 7eri,d+. Other E@uity Re!ated Schemes; TaA Savin# Schemes T*e+e +c*eme+ ,--er taJ rebate+ t, t*e i.:e+t,r+ u.der +7eci-ic 7r,:i+i,.+ ,- t*e I.dia. I.c,me TaJ la8+, a+ t*e G,:er.me.t ,--er+ taJ i.ce.ti:e+ -,r i.:e+tme.t i. +7eci-ied a:e.ue+. I.:e+tme.t+ made i. ECuity 4i.9ed Sa:i./+ Sc*eme+ %E4SS) a.d 2e.+i,. Sc*eme+ are all,8ed a+ deducti,. u.der Secti,. E"c ,- t*e I.dia. I.c,me TaJ Act, D($D. IndeA Schemes I.deJ Fu.d+ attem7t t, re7licate t*e 7er-,rma.ce ,- a 7articular i.deJ +uc* a+ t*e BSE Se.+eJ ,r t*e NSE S52 CN? G". Sectora! Schemes Sect,ral Fu.d+ are t*,+e 8*ic* i.:e+t eJclu+i:ely i. +7eci-ied +ect,r%+) +uc* a+ FMCG, I.-,rmati,. Tec*.,l,/y, 2*armaceutical+, etc. T*e+e +c*eme+ carry *i/*er ri+9 a+ c,m7ared t, /e.eral eCuity +c*eme+ a+ t*e 7,rt-,li, i+ le++ di:er+i-ied, i.e. re+tricted t, +ect,r%+) > i.du+try %ie+). Mutual -u.d +c*eme+ may be cla++i-ied ,. t*e ba+i+ ,- t*eir +tructure a.d it+ i.:e+tme.t ,b@ecti:e. 'ifferent p!ans that mutua! funds offer Mutual Fu.d+, i. ,rder t, cater t, a ra./e ,- i.:e+t,r .eed+, *a:e :ari,u+ i.:e+tme.t 7la.+. S,me ,- t*e im7,rta.t i.:e+tme.t 7la.+ i.clude *ro>th P!an Di:ide.d i+ .,t 7aid',ut u.der a Gr,8t* 2la. a.d t*e i.:e+t,r realiIe+ ,.ly t*e ca7ital a77reciati,. ,. t*e i.:e+tme.t %by a. i.crea+e i. NA3). Income P!an Di:ide.d+ are 7aid',ut t, i.:e+t,r+ u.der a. I.c,me 2la. t, t*e i.:e+t,r+. H,8e:er, t*e NA3 ,- t*e mutual -u.d +c*eme u.der a. I.c,me 2la. -all+ t, t*e eJte.t ,- t*e di:ide.d 7ay,ut. 'ividend Re<investment P!an Here t*e di:ide.d accrued ,. mutual -u.d+ i+ aut,matically re'i.:e+ted i. 7urc*a+i./ additi,.al u.it+ i. ,7e.'e.ded -u.d+. I. m,+t ca+e+ mutual -u.d+ ,--er t*e i.:e+t,r a. ,7ti,. ,- c,llecti./ di:ide.d+ ,r re'i.:e+ti./ t*e +ame. Retirement Pension P!an S,me +c*eme+ are li.9ed 8it* retireme.t 7e.+i,.. I.di:idual+ 7artici7ate i. t*e+e 7la.+ -,r t*em+el:e+, a.d c,r7,rate+ 7artici7ate -,r t*eir em7l,yee+. Insurance P!an UTI a.d 4IC Mutual Fu.d+ *a:e +,me +c*eme+ t*at ,--er i.+ura.ce c,:er t, i.:e+t,r+. Systematic Investment P!an +SIP/ Here t*e i.:e+t,r i+ /i:e. t*e ,7ti,. ,- 7re7ari./ a 7re'determi.ed .umber ,- 7,+t'dated c*eCue+ i. -a:,ur ,- t*e -u.d. T*e i.:e+t,r i+ all,tted u.it+ ,. t*e date ,- t*e re+7ecti:e c*eCue+ at t*e a77licable NA3. Systematic 5ithdra>a! P!an A+ ,77,+ed t, t*e Sy+tematic I.:e+tme.t 2la., t*e Sy+tematic =it*dra8al 2la. all,8+ t*e i.:e+t,r t*e -acility t, 8it*dra8 a 7re'determi.ed am,u.t > u.it+ -r,m *i+ -u.d at a 7re'determi.ed i.ter:al. T*e i.:e+t,rK+ u.it+ 8ill be redeemed at t*e a77licable NA3 a+ ,. t*at day. Termino!o#ies used in utua! funds Net Asset 3a!ue +NA3/ A+ 7er SEBI %Securitie+ a.d EJc*a./e B,ard ,- I.dia), NA3 ,- a +c*eme i+ determi.ed by di:idi./ t*e .et a++et+ ,- t*e +c*eme by t*e .umber ,- ,ut+ta.di./ u.it+ ,. t*e :aluati,. date. Ty7ically, NA3 i+ calculated by +ummi./ t*e curre.t mar9et :alue+ ,- all +ecuritie+ *eld by t*e -u.d, addi./ i. ca+* a.d a.y accrued i.c,me, t*e. +ubtracti./ liabilitie+ a.d di:idi./ t*e re+ult by t*e .umber ,- u.it+ ,ut+ta.di./. F,r eJam7le T,tal 3alue ,- Securitie+ %ECuity, B,.d+, Debe.ture+ etc.) R+. D""" Ca+* R+. DG"" 4iabilitie+ R+. G"" T,tal ,ut+ta.di./ u.it+ D"" NA3 L%D"""MDG""'G"")>D""N R+. &" 7er u.it M,+t -u.d+ c,m7ute NA3+ daily ba+ed ,. cl,+i./ mar9et 7rice+. Loads 4,ad i+ a c*ar/e c,llected by a mutual -u.d 8*e. it +ell+ u.it+. It ca. be le:ied a+ a. e.try l,ad %i.e., t*e c*ar/e i+ c,llected 8*e. a. i.:e+t,r buy+ t*e u.it+) a.d a+ a. eJit l,ad %i.e., t*e c*ar/e i+ c,llected 8*e. t*e i.:e+t,r +ell+ bac9 t*e u.it+). Sc*eme+ t*at d, .,t c*ar/e a.y l,ad a.d are called N, 4,ad Sc*eme+. 'ifference in 2uy and se!! price of units T*e buy a.d +ell 7rice ,- +c*eme+ ca. be di--ere.t -r,m t*e NA3 due t, e.try > eJit l,ad+. F,r eJam7le, i- t*e curre.t NA3 ,- a +c*eme i+ R+. D" a.d t*e e.try a.d eJit l,ad i+ D.GH t*e. t*e e--ecti:e 7urc*a+e 7rice -,r t*e i.:e+t,r 7er u.it 8ill be R+. D".DG, a.d t*e +ale 7rice 8ill be R+. (.EG. Purchase price 2urc*a+e 7rice i+ t*e 7rice 7aid by a cu+t,mer t, 7urc*a+e a u.it ,- t*e -u.d. I- t*e -u.d *a+ ., e.try l,ad, t*e. t*e +ale+ 7rice i+ t*e +ame a+ t*e NA3. I- t*e -u.d le:ie+ a. e.try l,ad, t*e. t*e +ale+ 7rice 8,uld be *i/*er t*a. t*e NA3, t, t*e eJte.t ,- t*e e.try l,ad le:ied. Redemption price Redem7ti,. 7rice i+ t*e 7rice recei:ed by t*e cu+t,mer ,. +elli./ u.it+ ,- a. ,7e.'e.ded +c*eme t, t*e -u.d. I- t*e -u.d d,e+ .,t le:y a. eJit l,ad, t*e redem7ti,. 7rice 8ill be +ame a+ t*e NA3. T*e redem7ti,. 7rice 8ill be l,8er t*a. t*e NA3 i. ca+e t*e -u.d le:ie+ a. eJit l,ad. Repurchase price Re7urc*a+e 7rice i+ di--ere.t -r,m redem7ti,. 7rice a.d re-er+ t, t*e 7rice at 8*ic* a cl,+e'e.ded +c*eme re7urc*a+e+ it+ u.it+. Re7urc*a+e ca. eit*er be at NA3 ,r ca. *a:e a. eJit l,ad. S>itch S,me mutual -u.d+ 7r,:ide t*e i.:e+t,r 8it* a. ,7ti,. t, +*i-t *i+ i.:e+tme.t -r,m ,.e +c*eme t, a.,t*er 8it*i. t*at -u.d. F,r t*i+ ,7ti,. t*e -u.d may le:y a +8itc*i./ -ee. S8itc*i./ all,8+ t*e I.:e+t,r t, alter t*e all,cati,. ,- t*eir i.:e+tme.t am,./ t*e +c*eme+ i. ,rder t, meet t*eir c*a./ed i.:e+tme.t .eed+, ri+9 7r,-ile+ ,r c*a./i./ circum+ta.ce+ duri./ t*eir li-etime utua! Funds Industry in India Investment in India I.dia i+ a 7,te.tial mar9et -,r ,:er+ea+ i.:e+tme.t a.d i+ acti:ely 8elc,mi./ t*e -,rei/. i.:e+t,r+ i. t*e mar9et. It 8ill emer/e a+ ,.e ,- t*e t,7 t*ree emer/i./ ec,.,mie+. I.dia am,./ t*e Eur,7ea. i.:e+t,r+ i+ c,.+idered t, be a /,,d i.:e+tme.t de+7ite t*e 7,litical u.certai.ty, bureaucracy tr,uble+, +*,rta/e ,- 7,8er a.d i.-ra+tructural i.e--icie.cie+. =*ile calculati./ t*e 7,te.tial a.d c,rrect e+timati,. a.d 7,++ibilitie+, ,.e .eed+ t, c,.+ider +uc* -act,r+ a+ t*e i.*ere.t *urdle+ a.d u.certai.tie+ ,- -u.cti,.i./ i. t*e I.dia. +y+tem. O.ce y,u e.ter I.diaK+ mar9et7lace, y,u 8ill *a:e a 8ell'de+i/.ed 7la. t*at +*,uld be +u77,rted by a +eri,u+ t*,u/*t a.d care-ul re+earc*. T*,+e 8*, l,,9 at I.dia a+ a l,./'term /r,8t* 8ill rea7 m,re 7r,-it+ rat*er t*a. t*,+e 8*, 8ill +ee ,.ly +*,rt'term 7r,-it ma9i./ ,77,rtu.itie+. I.dia i+ t*e -i-t* lar/e+t ec,.,my i. t*e 8,rld a.d it ra.9+ ab,:e Fra.ce, Italy, t*e U.ited <i./d,m, a.d Ru++ia. It *a+ t*e t*ird lar/e+t GD2 i. A+ia. It i+ t*e +ec,.d lar/e+t ,- t*e emer/i./ .ati,.+. I.dia i+ al+, ,.e ,- t*e -e8 mar9et+ i. t*e 8,rld 8*ic* ,--er *i/* 7r,+7ect+ ,- /r,8t* a.d ear.i./ 7,te.tial i. all +ect,r+ ,- bu+i.e++. Indian utua! Funds T*e mutual -u.d i.du+try ca. be br,adly 7ut i.t, -,ur 7*a+e+ acc,rdi./ t, t*e de:el,7me.t ,- t*e +ect,r. Eac* 7*a+e i+ brie-ly de+cribed a+ u.der.
FirstPhase<9BCD<E. U.it Tru+t ,- I.dia %UTI) 8a+ e+tabli+*ed ,. D($# by a. Act ,- 2arliame.t. It 8a+ +et u7 by t*e Re+er:e Ba.9 ,- I.dia a.d -u.cti,.ed u.der t*e Re/ulat,ry a.d admi.i+trati:e c,.tr,l ,- t*e Re+er:e Ba.9 ,- I.dia. I. D(!E UTI 8a+ de' li.9ed -r,m t*e RBI a.d t*e I.du+trial De:el,7me.t Ba.9 ,- I.dia %IDBI) t,,9 ,:er t*e re/ulat,ry a.d admi.i+trati:e c,.tr,l i. 7lace ,- RBI. T*e -ir+t +c*eme lau.c*ed by UTI 8a+ U.it Sc*eme D($F. At t*e e.d ,- D(EE UTI *ad R+.$,!"" cr,re+ ,- a++et+ u.der ma.a/eme.t. SecondPhase<9BE.<9BB: +Entry of Pu2!ic Sector Funds/ E.try ,- .,.'UTI mutual -u.d+ *a77e.ed. SBI Mutual Fu.d 8a+ t*e -ir+t -,ll,8ed by Ca. ba.9 Mutual Fu.d %Dec E!), 2u.@ab Nati,.al Ba.9 Mutual Fu.d %Au/ E(), I.dia. Ba.9 Mutual Fu.d %N,: E(), Ba.9 ,- I.dia %;u. ("), Ba.9 ,- Bar,da Mutual Fu.d %Oct (&). 4IC i. D(E( a.d GIC i. D((". T*e e.d ,- D((# mar9ed R+.F!,""F cr,re+ a+ a++et+ u.der ma.a/eme.t. Third Phase < 9BB:<,--: +Entry of Private Sector Funds/ =it* t*e e.try ,- 7ri:ate +ect,r -u.d+ i. D((#, a .e8 era +tarted i. t*e I.dia. mutual -u.d i.du+try, /i:i./ t*e I.dia. i.:e+t,r+ a 8ider c*,ice ,- -u.d -amilie+. Al+,, D((# 8a+ t*e year i. 8*ic* t*e -ir+t Mutual Fu.d Re/ulati,.+ came i.t, bei./, u.der 8*ic* all mutual -u.d+, eJce7t UTI 8ere t, be re/i+tered a.d /,:er.ed. T*e er+t8*ile <,t*ari 2i,.eer %.,8 mer/ed 8it* Fra.9li. Tem7let,.) 8a+ t*e -ir+t 7ri:ate +ect,r mutual -u.d re/i+tered i. ;uly D((#. T*e D((# SEBI %Mutual Fu.d) Re/ulati,.+ 8ere +ub+tituted by a m,re c,m7re*e.+i:e a.d re:i+ed Mutual Fu.d Re/ulati,.+ i. D(($. T*e i.du+try .,8 -u.cti,.+ u.der t*e SEBI %Mutual Fu.d) Re/ulati,.+ D(($. T*e .umber ,- mutual -u.d *,u+e+ 8e.t ,. i.crea+i./, 8it* ma.y -,rei/. mutual -u.d+ +etti./ u7 -u.d+ i. I.dia a.d al+, t*e i.du+try *a+ 8it.e++ed +e:eral mer/er+ a.d acCui+iti,.+. A+ at t*e e.d ,- ;a.uary &""#, t*ere 8ere ## mutual -u.d+ 8it* t,tal a++et+ ,- RS, &D,E"G c,rer+. T*e U.it Tru+t ,- I.dia 8it* R+.FF,GFD c,re+ ,- a++et+ u.der ma.a/eme.t 8a+ 8ay a*ead ,- ,t*er mutual -u.d+. Fourth Phase < since Fe2ruary ,--: T*i+ 7*a+e *ad bitter eJ7erie.ce -,r UTI. It 8a+ bi-urcated i.t, t8, +e7arate e.titie+. O.e i+ t*e S7eci-ied U.derta9i./ ,- t*e U.it Tru+t ,- I.dia 8it* AUM ,- R+.&(,E#G C,re+ %a+ ,. ;a.uary &""#). T*e S7eci-ied U.derta9i./ ,- U.it Tru+t ,- I.dia, -u.cti,.i./ u.der a. admi.i+trat,r a.d u.der t*e rule+ -ramed by G,:er.me.t ,- I.dia a.d d,e+ .,t c,me u.der t*e 7ur:ie8 ,- t*e Mutual Fu.d Re/ulati,.+. Future of utua! Funds in India < An Overvie> Fi.a.cial eJ7ert+ belie:e t*at t*e -uture ,- Mutual Fu.d+ i. I.dia 8ill be :ery bri/*t. It *a+ bee. e+timated t*at by Marc*'e.d ,- &"D", t*e mutual -u.d i.du+try ,- I.dia 8ill reac* R+ F",(",""" cr,re, ta9i./ i.t, acc,u.t t*e t,tal a++et+ ,- t*e I.dia. c,mmercial ba.9+. T*e e+timati,. 8a+ ba+ed ,. t*e December &""F a++et :alue ,- R+ D,G",G#! cr,re. I. t*e c,mi./ D" year+ t*e a..ual c,m7,+ite /r,8t* rate i+ eJ7ected t, /, u7 by D#.FH. Si.ce t*e la+t G year+, t*e /r,8t* rate 8a+ rec,rded a+ (H a..ually. Ba+ed ,. t*e curre.t rate ,- /r,8t*, it ca. be -,reca+ted t*at t*e mutual -u.d a++et+ 8ill be d,uble by &"D". Indian utua! Funds Future - *ro>th Facts I. t*e 7a+t $ year+, Mutual Fu.d+ i. I.dia *a:e rec,rded a /r,8t* ,- D"" H. I. I.dia, t*e rate ,- +a:i./ i+ &# H. I. t*e -uture, t*ere lie+ a bi/ +c,7e -,r t*e I.dia. Mutual Fu.d+ i.du+try t, eJ7a.d. Se:eral a++et ma.a/eme.t c,m7a.ie+ 8*ic* are -,rei/. ba+ed are .,8 e.teri./ t*e I.dia. mar9et+. A .umber ,- c,mm,dity Mutual Fu.d+ 8ill be i.tr,duced i. t*e -uture. T*e SEBI *a+ /ra.ted t*e 7ermi++i,. -,r t*e +ame. M,re em7*a+i+ i+ 7ut ,. t*e e--ecti:e Mutual Fu.d+ /,:er.a.ce. T*ere i+ al+, e.,u/* +c,7e -,r t*e I.dia. Mutual -u.d+ t, e.ter i.t, t*e +emi'urba. a.d rural area+. Fi.a.cial 7la..er+ 8ill 7lay a ma@,r r,le i. t*e Mutual Fu.d+ mar9et by 7r,:idi./ 7e,7le 8it* 7r,7er -i.a.cial 7la..i./. Features " &enefits (ereFs >hy investin# in mutua! funds cou!d prove to 2e a #ood financia! decision; Constant ne> opportunities Fu.d ma.a/er+ ide.ti-y a.d maJimiIe ,77,rtu.itie+ -,r y,ur i.:e+tme.t+ t, /r,8 8it* t*e *el7 ,- critical i.-,rmati,. -r,m leadi./ ec,.,mi+t+ a.d a.aly+t+. Reduced ris?s =*ile y,u eJ7a.d y,ur 7,rt-,li,, mutual -u.d+ *el7 y,u reduce y,ur ,:erall i.:e+tme.t ri+9 by di:er+i-icati,. ,- i.:e+tme.t. Speedy access to your money ; A+ m,+t ,- t*e mutual -u.d+ ca. be b,u/*t a.d +,ld ,. a.y deali./ day %8*ic* .,rmally mea.+ 8ee9day+), y,u /et ea+y acce++ t, y,ur m,.ey at +*,rt .,tice. Afforda2i!ity Becau+e ,- it+ lar/e c,r7u+, e:e. a +mall i.:e+t,r ca. be.e-it -r,m it+ i.:e+tme.t +trate/y. Afforda2i!ity 1,u /et taJ be.e-it+ ,. treatme.t ,- l,./'term ca7ital /ai.+. Lo> costs T*e be.e-it+ ,- +cale i. br,9era/e, cu+t,dial a.d ,t*er -ee+ tra.+late i.t, l,8er c,+t+ -,r i.:e+t,r+. Transparency Re#u!ated for investor protection; T*e mutual -u.d+ +ect,r i+ re/ulated t, +a-e/uard t*e i.:e+t,rK+ i.tere+t+. ,1: < COPAN7 PROFILE T*e HSBC Gr,u7 i+ ,.e ,- t*e lar/e+t ba.9i./ a.d -i.a.cial +er:ice+ ,r/a.iIati,.+ i. t*e 8,rld. HSBC i+ ,.e ,- t*e 8,rldK+ leadi./ ba.9i./ /ia.t+ a.d b,a+t+ ,- a DF"'year *i+t,ry i. ba.9i./ +er:ice+. HSBC ,7erate+ i. m,re t*a. !" c,u.trie+ acr,++ t*e /l,be a.d *a+ a++et+ ,- ,:er OD.& trilli,. ,. t*e c,.+,lidated /r,u7 bala.ce +*eet. T*e i.:e+tme.t ba.9i./ a.d -u.d ma.a/eme.t bu+i.e++e+ ,- t*e /r,u7 i+ *a.dled by HSBC I.:e+tme.t+. =it* dedicated i.:e+tme.t 7r,-e++i,.al+ acr,++ Eur,7e, A-rica, A+ia 2aci-ic a.d t*e America, HSBC I.:e+tme.t+ *a+ +tr,./ /l,bal i.:e+tme.t ca7abilitie+ t*at are deli:ered t, clie.t+ l,cally. HSBC A++et Ma.a/eme.t %I.dia) 2ri:ate 4imited i+ t*e I.:e+tme.t Ma.a/er t, HSBC Mutual Fu.d, +et u7 l,cally by t*e HSBC Gr,u7. HSBC I.:e+tme.t+ i+ t*e bra.d .ame ad,7ted by HSBC A++et Ma.a/eme.t %I.dia) 2ri:ate 4imited. HSBC A++et Ma.a/eme.t I.dia 2ri:ate 4imited act+ a+ t*e A++et Ma.a/eme.t C,m7a.y t, t*e HSBC Mutual Fu.d. HSBC Securitie+ a.d Ca7ital Mar9et+ I.dia 2ri:ate 4imited, a. a--iliate ,- t*e HSBC /r,u7, i+ t*e +7,.+,r ,- t*e -u.d a.d ,8.+ !G 7erce.t +ta9e i. t*e AMC. T*e AMC i+ *eaded by it+ c*airma. Niall S B,,9er, 8*, i+ al+, t*e *ead ,- HSBC Ba.9 i. I.dia. T*e ,7erati,.+ ,- t*e AMC are *eaded by Sa.@ay 2ra9a+*, direct,r a.d CEO. A+ ,- Au/ &""$, t*e -u.d *a+ a++et+ ,- ,:er R+.D",$EF cr,re u.der ma.a/eme.t. T*e bu+i.e++ i+ 8,r9i./ ,. ambiti,u+ 7la.+ t, 7,+iti,. it+el- a+ ,.e ,- t*e leadi./ 2ri:ate Sect,r Fu.d Ma.a/er+ i. t*e I.dia. -i.a.cial mar9et ' ,.e ,- t*e m,+t 7r,mi+i./ mar9et+ i. A+ia. A+ ,- ;a. &""E, t*e -u.d *ad a++et+ ,- R+. D$#DG cr,re+ u.der ma.a/eme.t. Curre.tly, HSBC MF *,ld+ ele:e.t* 7,+iti,. am,./ all mutual -u.d c,m7a.ie+ i. term+ ,- AUM. (S&C utua! Fund HSBC Mutual Fu.d 8a+ +etu7 ,. May &!, &""& 8it* HSBC Securitie+ a.d Ca7ital Mar9et+ %I.dia) 2ri:ate 4imited a+ t*e +7,.+,r. B,ard ,- Tru+tee+, ,- HSBC Mutual Fu.d act+ a+ t*e Tru+tee C,m7a.y ,- HSBC Mutual Fu.d. T*e AMC i+ HSBC A++et Ma.a/eme.t %I.dia) 2ri:ate 4td., i.c,r7,rated ,. December D&, &""D. HSBC Mutual Fu.d+ i+ ,.e ,- t*e m,+t tru+ted i.:e+tme.t a.d mutual -u.d+ c,m7a.ie+ i. I.dia. It i+ li9e a 8,rldK+ l,cal ba.9 8*ere y,u ca. ma9e maJimum /r,8t* ,- t*e +um i.:e+ted. HSBC Mutual Fu.d+ C,m7a.y ,--er+ it+ clie.t+ 8,.der-ul i.:e+tme.t ,7ti,.+ a.d it *el7+ i. creati./ a.d i.crea+i./ t*eir 8ealt* +, t*at t*ey may rea7 maJimum be.e-it+ -r,m t*e i.:e+tme.t i. t*e l,./ ru.. Reasons for *ro>th Focus on the C!ients T*i+ i+ a bi/ Cue+ti,. 8*y y,u +*,uld i.:e+t y,ur m,.ey 8it* HSBC Mutual Fu.d+. O.e ,- t*e ma@,r -eature+ ,- t*e c,m7a.y i+ it+ -,cu+ ,. t*e clie.t+. HSBC Mutual Fu.d+ i+ 7rimarily a clie.t ba+ed c,m7a.y 8*ic* *a+ a l,t ,- eJ7erti+e i. deali./ all 9i.d+ ,- i.:e+tme.t matter+. T*e c,m7a.y u+e+ it+ 8ide 9.,8led/e i. 7r,:idi./ it+ 8ell de:el,7ed 7r,duct+ t, t*e clie.t+. EAemp!ary Team 5or? HSBC Mutual Fu.d+ .,t ,.ly +ell+ i.'*,u+e ca7abilitie+ but it al+, 7r,:ide+ a77r,7riate clie.t +,luti,.+. Si.ce it+ i.ce7ti,., t*e c,m7a.y *a+ bee. c,.+ta.tly tryi./ t, li:e u7 t, t*e eJ7ectati,.+ ,- it+ clie.t+. T*e c,m7a.y em7*a+iIe+ ,. team'8,r9 by de:el,7i./ a *i/*ly m,ti:ated a.d -,cu+ed +et ,- team+ 8*ic* are bac9ed by c,.+ta.t +u77,rt -r,m t*e +e.i,r+. S,me ,- t*e ,t*er *i/*li/*t+ ,- HSBC Mutual Fu.d+ 8*ic* *a:e c,.tributed lar/ely i. ma9i./ t*e c,m7a.y a *,u+e'*,ld .ame i.clude+ Constant Ne> Opportunities T*e c,m7a.y *a+ eJ7ert a.aly+t+ i.cluded i. t*e li+t ,- it+ Fu.d Ma.a/er+. T*ey ide.ti-y a.d maJimiIe, 8it* due c,.+ultati,. 8it* leadi./ ec,.,mi+t+, di--ere.t 7,++ibilitie+ +, t*at y,ur i.:e+ted 8ealt* may /et ra7id /r,8t*. Reduced Ris?s By di:er+i-icati,. ,- i.:e+tme.t, HSBC Mutual Fu.d+ C,m7a.y *el7+ y,u i. reduci./ /e.eral i.:e+tme.t ri+9 i.:,l:ed i. t*e bu+i.e++. TaA &enefits TaJ be.e-it i+ ,.e ,- t*e ma@,r c*aracteri+tic+ ,- HSBC Mutual Fu.d+. Clie.t+ i.:e+ti./ i. t*e c,m7a.y /et :aried taJ be.e-it+ ,. treatme.t ,- t*e l,./ term ca7ital /ai.+. Products of (S&C utua! fund C!assification 2y Structure Open Ended HSBC Ad:a.ta/e I.dia Fu.d HSBC Ca+* Fu.d HSBC Dy.amic Fu.d HSBC ECuity Fu.d HSBC Fl,ati./ Rate Fu.d HSBC Gilt Fu.d HSBC I.c,me Fu.d HSBC I.dia O77,rtu.itie+ Fu.d HSBC 4iCuid 2lu+ Fu.d HSBC Midca7 ECuity Fu.d HSBC MI2 HSBC TaJ Sa:er ECuity Fu.d C!ose Ended HSBC U.iCue O77,rtu.itie+ Fu.d C!assification 2y Funds Scheme Name HSBC I.c,me Fu.d ' I.:e+tme.t ' I.+t. P Gr,8t* HSBC I.c,me Fu.d ' I.:e+tme.t ' Re/ular P Di:ide.d HSBC I.c,me Fu.d ' I.:e+tme.t ' Re/ular P Gr,8t* HSBC I.c,me Fu.d ' S*,rt Term ' I.+t. P Di:ide.d HSBC I.c,me Fu.d ' S*,rt Term ' I.+t. P Gr,8t* HSBC I.c,me Fu.d ' S*,rt Term ' Re/ular P Di:ide.d HSBC I.c,me Fu.d ' S*,rt Term ' Re/ular P Gr,8t* HSBC I.c,me Fu.d ' S*,rt Term ' I.+t. ' Di:ide.d ' =ee9ly HSBC I.c,me Fu.d ' S*,rt Term ' Re/ular ' Di:ide.d ' =ee9ly HSBC MI2 ' Re/ular ' Gr,8t* HSBC MI2 ' Re/ular ' Di:ide.d ' M,.t*ly HSBC MI2 ' Re/ular ' Di:ide.d ' Quarterly HSBC MI2 ' Sa:i./+ ' Gr,8t* HSBC MI2 ' Sa:i./+ ' Di:ide.d ' M,.t*ly HSBC MI2 ' Sa:i./+ ' Di:ide.d ' Quarterly HSBC Ad:a.ta/e I.dia Fu.d ' Di:ide.d HSBC Ad:a.ta/e I.dia Fu.d ' Gr,8t* HSBC ECuity Fu.d ' Di:ide.d HSBC ECuity Fu.d ' Gr,8t* HSBC I.dia O77,rtu.itie+ Fu.d ' Di:ide.d HSBC I.dia O77,rtu.itie+ Fu.d ' Gr,8t* HSBC Midca7 ECuity Fu.d ' Di:ide.d HSBC Midca7 ECuity Fu.d ' Gr,8t* HSBC Ca+* Fu.d ' I.+t. ' Di:ide.d ' Daily HSBC Ca+* Fu.d ' I.+t. ' Di:ide.d ' M,.t*ly HSBC Ca+* Fu.d ' I.+t. ' Di:ide.d ' =ee9ly HSBC Ca+* Fu.d ' I.+t. ' Gr,8t* HSBC Ca+* Fu.d ' I.+t. 2lu+ ' Di:ide.d ' Daily HSBC Ca+* Fu.d ' I.+t. 2lu+ ' Di:ide.d P M,.t*ly HSBC Ca+* Fu.d ' I.+t. 2lu+ ' Di:ide.d P =ee9ly HSBC Ca+* Fu.d ' I.+t. 2lu+ ' Gr,8t* HSBC Ca+* Fu.d ' Re/ular ' Di:ide.d ' Daily HSBC Ca+* Fu.d ' Re/ular ' Di:ide.d ' =ee9ly HSBC Ca+* Fu.d ' Re/ular ' Gr,8t* HSBC Gilt Fu.d ' S*,rt Term ' Di:ide.d HSBC Gilt Fu.d ' S*,rt Term ' Gr,8t* HSBC TaJ Sa:er ECuity Fu.d ' Di:ide.d HSBC TaJ Sa:er ECuity Fu.d ' Gr,8t* HSBC Dy.amic Fu.d ' Gr,8t* HSBC Dy.amic Fu.d ' Di:ide.d &OAR' OF 'IRECTORS 8 (S&C AC S1NO NAE 'ESI*NATION IN'EPEN'ENT OR ASSOCIAT E' 9 San=ay Pra?ash Direct,r 5 C.E.O ' HSBC A++et Ma.a/eme.t %I.dia) 2ri:ate 4imited Associated 'irectors , Nai.a 4al <id8ai C*airma. ,- t*e B,ard ,- Direct,r+ Associated 'irectors : AyaI Ebra*im Direct,r Associated 'irectors D Na8+*ir <*ur,dy Direct,r Independent 'irectors G 3it*al 2ale9ar Direct,r Independent 'irectors C ;a/@it 4al 2a+ric*a Direct,r Independent 'irectors COPETITORS A&N ARO utua! Fund ABN AMRO Mutual Fu.d 8a+ +etu7 ,. A7ril DG, &""F 8it* ABN AMRO Tru+tee %I.dia) 2:t. 4td. a+ t*e Tru+tee C,m7a.y. T*e AMC, ABN AMRO A++et Ma.a/eme.t %I.dia) 4td. 8a+ i.c,r7,rated ,. N,:ember F, &""#. Deut+c*e Ba.9 A G i+ t*e cu+t,dia. ,- ABN AMRO Mutual Fu.d &ir!a Sun Life utua! Fund Birla Su. 4i-e Mutual Fu.d i+ t*e @,i.t :e.ture ,- Aditya Birla Gr,u7 a.d Su. 4i-e Fi.a.cial. Su. 4i-e Fi.a.cial i+ a /l,bal ,r/a.iIati,. e:,l:ed i. DE!D a.d i+ bei./ re7re+e.ted i. Ca.ada, t*e US, t*e 2*ili77i.e+, ;a7a., I.d,.e+ia a.d Bermuda a7art -r,m I.dia. Birla Su. 4i-e Mutual Fu.d -,ll,8+ a c,.+er:ati:e l,./'term a77r,ac* t, i.:e+tme.t. Rece.tly it cr,++ed AUM ,- R+. D",""" cr,re+. &an? of &aroda utua! Fund +&O& utua! Fund ) Ba.9 ,- Bar,da Mutual Fu.d ,r BOB Mutual Fu.d 8a+ +etu7 ,. Oct,ber #", D((& u.der t*e +7,.+,r+*i7 ,- Ba.9 ,- Bar,da. BOB A++et Ma.a/eme.t C,m7a.y 4imited i+ t*e AMC ,- BOB Mutual Fu.d a.d 8a+ i.c,r7,rated ,. N,:ember G, D((&. Deut+c*e Ba.9 AG i+ t*e cu+t,dia. ('FC utua! Fund HDFC Mutual Fu.d 8a+ +etu7 ,. 6une :-0 ,--- 8it* t8, +7,.+,rer+ .amely H,u+i./ De:el,7me.t Fi.a.ce C,r7,rati,. 4imited a.d Sta.dard 4i-e I.:e+tme.t+ 4imited. IN* 3ysya utua! Fund ING 3y+ya Mutual Fu.d 8a+ +etu7 ,. Fe2ruary 990 9BBB 8it* t*e +ame .amed Tru+tee C,m7a.y. It i+ a @,i.t :e.ture ,- 3y+ya a.d ING. T*e AMC, ING I.:e+tme.t Ma.a/eme.t %I.dia) 2:t. 4td. 8a+ i.c,r7,rated ,. A7ril $, D((E or#an Stan!ey utua! Fund India M,r/a. Sta.ley i+ a 8,rld8ide -i.a.cial +er:ice+ c,m7a.y a.d itB+ leadi./ i. t*e mar9et i. +ecuritie+, i.:e+tme.t ma.a/eme.t a.d credit +er:ice+. M,r/a. Sta.ley I.:e+tme.t Ma.a/eme.t %MISM) 8a+ e+tabli+*ed i. t*e year 9B.G. It 7r,:ide+ cu+t,miIed a++et ma.a/eme.t +er:ice+ a.d 7r,duct+ t, /,:er.me.t+, c,r7,rati,.+, 7e.+i,. -u.d+ a.d .,.'7r,-it ,r/a.iIati,.+. It+ +er:ice+ are al+, eJte.ded t, *i/* .et 8,rt* i.di:idual+ a.d retail i.:e+t,r+. I. I.dia it i+ 9.,8. a+ M,r/a. Sta.ley I.:e+tme.t Ma.a/eme.t 2ri:ate 4imited %MSIM I.dia) a.d it+ AMC i+ M,r/a. Sta.ley Mutual Fu.d %MSMF). Fran?!in Temp!eton India utua! Fund T*e /r,u7, Fra.9li. Tem7let,. I.:e+tme.t+ i+ a Ca!ifornia +%SA/ 2ased c,m7a.y 8it* a /l,bal A% of %SH D-B1, 2n. %a+ ,- A7ril #", &""G). It i+ ,.e ,- t*e lar/e+t -i.a.cial +er:ice+ /r,u7+ i. t*e 8,rld. I.:e+t,r+ ca. buy ,r +ell t*e Mutual Fu.d t*r,u/* t*eir -i.a.cial ad:i+,r ,r t*r,u/* mail ,r t*r,u/* t*eir 8eb+ite. T*ey *a:e O7e. e.d Di:er+i-ied ECuity +c*eme+, O7e. e.d Sect,r ECuity +c*eme+, O7e. e.d Hybrid +c*eme+, O7e. e.d TaJ Sa:i./ +c*eme+, O7e. e.d I.c,me a.d 4iCuid +c*eme+, Cl,+ed e.d I.c,me +c*eme+ a.d O7e. e.d Fu.d ,- Fu.d+ +c*eme+ t, ,--er. Standard Chartered utua! Fund Sta.dard C*artered Mutual Fu.d 8a+ +et u7 ,. Marc* D#, &""" sponsored by Standard Chartered &an?. T*e Tru+tee i+ Sta.dard C*artered Tru+tee C,m7a.y 2:t. 4td. Sta.dard C*artered A++et Ma.a/eme.t C,m7a.y 2:t. 4td. i+ t*e AMC 8*ic* 8a+ i.c,r7,rated 8it* SEBI ,. December &",D(((. Re!iance utua! Fund Relia.ce Mutual Fu.d %RMF) 8a+ e+tabli+*ed a+ tru+t u.der I.dia. Tru+t+ Act, DEE&. T*e +7,.+,r ,- RMF i+ Relia.ce Ca7ital 4imited a.d Relia.ce Ca7ital Tru+tee C,. 4imited i+ t*e Tru+tee. It 8a+ re/i+tered on 6une :-, 9BBG a+ Relia.ce Ca7ital Mutual Fu.d 8*ic* 8a+ c*a./ed ,. Marc* DD, &""F. Relia.ce Mutual Fu.d 8a+ -,rmed -,r lau.c*i./ ,- :ari,u+ +c*eme+ u.der 8*ic* u.it+ are i++ued t, t*e 2ublic 8it* a :ie8 t, c,.tribute t, t*e ca7ital mar9et a.d t, 7r,:ide i.:e+t,r+ t*e ,77,rtu.itie+ t, ma9e i.:e+tme.t+ i. di:er+i-ied +ecuritie+. %nit Trust of India utua! Fund UTI A++et Ma.a/eme.t C,m7a.y 2ri:ate 4imited, e+tabli+*ed i. ;a. DF, &""#, ma.a/e+ t*e UTI Mutual Fu.d 8it* t*e +u77,rt ,- UTI Tru+tee C,m7a.y 2ri:ate 4imited. UTI A++et Ma.a/eme.t C,m7a.y 7re+e.tly ma.a/e+ a c,r7u+ ,- ,:er R+.&"""" Cr,re. T*e +7,.+,rer+ ,- UTI Mutual Fu.d are Ba.9 ,- Bar,da %BOB), 2u.@ab Nati,.al Ba.9 %2NB), State Ba.9 ,- I.dia %SBI), a.d 4i-e I.+ura.ce C,r7,rati,. ,- I.dia %4IC). T*e +c*eme+ ,- UTI Mutual Fu.d are 4iCuid Fu.d+, I.c,me Fu.d+, A++et Ma.a/eme.t Fu.d+, I.deJ Fu.d+, ECuity Fu.d+ a.d Bala.ce Fu.d+. 4ota? ahindra utua! Fund <,ta9 Ma*i.dra A++et Ma.a/eme.t C,m7a.y %<MAMC) i+ a +ub+idiary ,- <MB4. It i+ 7re+e.tly *a:i./ m,re t*a. 90BB0E9E investors i. it+ :ari,u+ +c*eme+. <MAMC +tarted it+ ,7erati,.+ i. December 9BBE. <,ta9 Ma*i.dra Mutual Fu.d ,--er+ +c*eme+ cateri./ t, i.:e+t,r+ 8it* :aryi./ ri+9 ' retur. 7r,-ile+. It 8a+ t*e -ir+t c,m7a.y t, lau.c* dedicated /ilt +c*eme i.:e+ti./ ,.ly i. /,:er.me.t +ecuritie+. Tata utua! Fund Tata Mutual Fu.d %TMF) i+ a Tru+t u.der t*e I.dia. Tru+t Act, DEE&. T*e +7,.+,rer+ -,r Tata Mutual Fu.d are Tata S,.+ 4td., a.d Tata I.:e+tme.t C,r7,rati,. 4td. T*e i.:e+tme.t ma.a/er i+ Tata A++et Ma.a/eme.t 4imited a.d it+ Tata Tru+tee C,m7a.y 2:t. 4imited. Tata A++et Ma.a/eme.t 4imitedK+ i+ ,.e ,- t*e -a+te+t i. t*e c,u.try 8it* m,re t*a. Rs1 .0.-: crores %a+ ,. A7ril #", &""G) ,- AUM. State &an? of India utua! Fund State Ba.9 ,- I.dia Mutual Fu.d i+ t*e -ir+t Ba.9 +7,.+,red Mutual Fu.d t, lau.c* ,--+*,re -u.d, t*e I.dia Ma/.um Fu.d 8it* a c,r7u+ ,- R+. &&G cr. a77r,Jimately. T,day it i+ t*e lar/e+t Ba.9 +7,.+,red Mutual Fu.d i. I.dia. T*ey *a:e already lau.c*ed #G Sc*eme+ ,ut ,- 8*ic* DG *a:e already yielded *a.d+,me retur.+ t, i.:e+t,r+. State Ba.9 ,- I.dia Mutual Fu.d *a+ m,re t*a. R+. G,G"" Cr,re+ a+ AUM. N,8 it *a+ a. i.:e+t,r ba+e ,- ,:er E 4a9*+ +7read ,:er DE +c*eme+ Sahara utua! Fund Sa*ara Mutual Fu.d 8a+ +et u7 ,. ;uly DE, D(($ 8it* Sa*ara I.dia Fi.a.cial C,r7,rati,. 4td. a+ t*e +7,.+,r. Sa*ara A++et Ma.a/eme.t C,m7a.y 2ri:ate 4imited i.c,r7,rated ,. Au/u+t #D, D((G 8,r9+ a+ t*e AMC ,- Sa*ara Mutual Fu.d. T*e 7aid'u7 ca7ital ,- t*e AMC +ta.d+ at R+ &G.E cr,re. Prudentia! ICICI utua! Fund T*e mutual -u.d ,- ICICI i+ a @,i.t :e.ture 8it* 2rude.tial 2lc. ,- America, ,.e ,- t*e lar/e+t li-e i.+ura.ce c,m7a.ie+ i. t*e US ,- A. 2rude.tial ICICI Mutual Fu.d 8a+ +etu7 ,. D#t* ,- Oct,ber, D((# 8it* t8, +7,.+,rer+, 2rude.tial 2lc. a.d ICICI 4td. T*e Tru+tee C,m7a.y -,rmed i+ 2rude.tial ICICI Tru+t 4td. a.d t*e AMC i+ 2rude.tial ICICI A++et Ma.a/eme.t C,m7a.y 4imited i.c,r7,rated ,. ,,nd of 6une0 9BB:. ABN AMRO A++et Ma.a/eme.t %I.dia) 4td. 888.a++etma.a/eme.t.ab.amr,.c,.i. AIG Gl,bal A++et Ma.a/eme.t C,m7a.y %I.dia) 2:t. 4td. 888.ai/i.:e+tme.t+.c,.i. Be.c*mar9 A++et Ma.a/eme.t C,. 2:t. 4td. 888.be.c*mar9-u.d+.c,m Birla Su. 4i-e A++et Ma.a/eme.t C,. 4td. 888.birla+u.li-e.c,m BOB A++et Ma.a/eme.t C,. 4td. 888.b,bm-.c,m Ca.ara R,bec, A++et Ma.a/eme.t C,. 4td. 888.ca.arar,bec,.c,m DBS C*,lama.dalam A++et Ma.a/eme.t 4td. 888.db+c*,lamutual-u.d.c,m Deut+c*e A++et Ma.a/eme.t %I.dia) 2:t. 4td. 888.d8+'i.dia.c,m DS2 Merrill 4y.c* Fu.d Ma.a/er+ 4td. 888.d+7mlmutual-u.d.c,m E+c,rt+ A++et Ma.a/eme.t 4td. 888.e+c,rt+mutual.c,m Fidelity Fu.d Ma.a/eme.t 2:t.4td. 888.-idelity.c,.i. Fra.9li. Tem7let,. A++et Ma.a/eme.t %I.dia) 2:t. 4td. 888.-ra.9li.tem7let,.i.dia.c,m HDFC A++et Ma.a/eme.t C,. 4td. 888.*d-c-u.d.c,m HSBC A++et Ma.a/eme.t %I.dia) 2:t. 4td. 888.*+bci.:e+tme.t+.c,.i. ING I.:e+tme.t Ma.a/eme.t %I.dia) 2:t. 4td. 888.i./:y+yam-.c,m ;M Fi.a.cial A++et Ma.a/eme.t 2:t. 4td. 888.;MFi.a.cialm-.c,m ;2 M,r/a. A++et Ma./eme.t I.dia 2:t. 4td. 888.@7m,r/a.m-.c,m <,ta9 Ma*i.dra A++et Ma.a/eme.t C,. 4td. 888.9,ta9mutual.c,m 4IC Mutual Fu.d A++et Ma.a/eme.t C,.4td. 888.licmutual.c,m 4,tu+ I.dia A++et Ma.a/eme.t C,. 2:t. 4td. 888.l,tu+i.diaamc.c,m Mirae A++et Gl,bal I.:e+tme.t Ma.a/eme.t %I.dia) 2:t. 4td. 888.miraea++etm-.c,.i. M,r/a. Sta.ley I.:e+tme.t Ma.a/eme.t 2:t. 4td. 888.m+/-i.dia.c,m 2ri.ci7al 2.b A++et Ma.a/eme.t C,. 2:t. 4td. 888.7ri.ci7ali.dia.c,m ICICI 2rude.tial A++et Ma.a/eme.t C,. 4td. 888.icici7ruamc.c,m Qua.tum A++et Ma.a/eme.t C,. 2:t. 4td. 888.Qua.tumAMC.c,m Relia.ce Ca7ital A++et Ma.a/eme.t 4td. 888.relia.cemutual.c,m Sa*ara A++et Ma.a/eme.t C,. 2:t. 888.+a*aramutual.c,m C(APTER 8 : :19 O&6ECTI3E :1, LIITATION OF T(E ST%'7 :19 O&6ECTI3ES PRIAR7 O&6ECTI3E; T, +tudy t*e cu+t,mer 7erce7ti,. ,- 7ri:ate mutual -u.d+ 7articularly i. HSBC mutual -u.d+ SECON'AR7 O&6ECTI3ES; T, mea+ure a8are.e++ ,- i.:e+tme.t+ i. mutual -u.d+ T, -i.d ,ut t*e +trate/ie+ ad,7ted by HSBC i. attracti./ i.:e+t,r+. T, -i.d i.:e+t,r+B ,7i.i,. ,- HSBC mutual -u.d+. T, e:aluate t*e e--ecti:e.e++ ,- t*e 7r,duct+ ,- HSBC mutual -u.d+. T, a++e++ t*e im7act ,- +er:ice re.dered by t*e c,m7a.y. T, -i.d ,ut *,8 t*e ,r/a.iIati,. i+ able t, -i.d ,ut t*e /a7+ i. t*e 7er-,rma.ce a.d *,8 t*ey are able t, -ill t*e /a7+ bet8ee. t*e de+ired a.d actual le:el+ ,- a. i.:e+tme.t. 2r,:idi./ +u//e+ti,. -,r better 7er-,rma.ce ,- +er:ice i. mutual -u.d+. :1, LIITATIONS OF T(E ST%'7 T*,u/* t*e 7re+e.t +tudy aim+ t, ac*ie:e t*e ab,:ePme.ti,.ed ,b@ecti:e+ i. -ull ear.e+t a.d accuracy, it may be *am7ered due t, certai. limitati,.+. S,me t*e limitati,. ,- t*i+ +tudy may be +ummariIed a+ -,ll,8+ I.:e+t,r+ are .,t able t, /i:e c,rrect i.-,rmati,. ab,ut t*eir i.:e+tme.t+, +i.ce m,+t ,- t*em *a:e i.:e+ted i. ma.y mutual -u.d+ ,- di--ere.t c,m7a.ie+. T*ey are u.able t, rec,llect 7r,7erly. T*ere i+ a time c,.+trai.t 8*ile /i:i./ -ull i.-,rmati,. t, t*e Cue+ti,..aire by t*e i.:e+t,r+ a+ t*ey are bu+y. Due t, t*e +*,rt durati,. ,- t*e 7r,@ect, t*e +am7le +iIe i+ limited t, G" a.d t*i+ i.crea+e+ t*e :ariati,. i. a.aly+i+ 8*e. c,m7ared t, a lar/e +am7le +iIe. C(APTER D D19 RESEARC( ET(O'OLO*7 D1, RE3IE5 OF LITERAT%RE D1: FOR%LATIN* (7POT(ESIS D1D EPIRICAL ANAL7SIS D19 RESEARC( 'ESI*N I ET(O'OLO*7 Met*,d,l,/y i+ ,.e ,- t*e mai. a+7ect+ ,- a.y re+earc*, eJtreme care t, be ta9e. 8*ile c,llecti./ t*e data. Re+earc* de+i/. a+ a ba+ic, /uide+ data c,llecti,. a.d a.aly+i+ 7*a+e+ ,- t*e re+earc* 7r,@ect. It i+ t*e -rame8,r9, 8*ic* +7eci-ie+ t*e ty7e ,- i.-,rmati,. t, be c,llected, t*e +,urce ,- data t, be a.alyIed a.d t*e i.-,rmati,. /at*ered i+ c,.+i+te.t 8it* t*e +tudy ,b@ecti:e+ a.d t*at data are c,llected by accurate a.d ec,.,mical 7r,cedure+. Primary 'ata Co!!ection; T*e i.-,rmati,. 8*ic* i+ -,ll,8ed -,r t*e -ir+t time, t*u+ *a77e. t, be ,ri/i.al i. c*aracter. T*e 7rimary data i+ ba+ed ,. t*e i.-,rmati,. c,llected by re+earc*er -r,m re+7,.de.t+ t*r,u/* Cue+ti,..aire. I. t*i+ +tudy t*e 7rimary data i+ c,llected -r,m t*e em7l,yee+ t*r,u/* a Cue+ti,..aire 8*ic* I 7r,7,+e t, a.alyIe a.d tabulate t*e -i.di./+. Al+, t*e +trate/ie+ ad,7ted by t*e c,m7a.y are c,llected -r,m t*e eJecuti:e+ ,- HSBC Mutual -u.d. Secondary 'ata Co!!ection; Data 8*ic* *a:e already bee. c,llected by +,me ,t*er re+earc*er a.d *a:e bee. 7r,ce++ed i+ t*e Sec,.dary data. I. t*e 7re+e.t +tudy, data 8a+ c,llected -r,m t*e -,ll,8i./ +er:ice+ C,m7a.yB+ i.ter.al rec,rd+ B,,9+ a.d ma/aIi.e+ =eb+ite+ Popu!ation; T*e re+7,.de.t+ -,r t*i+ +tudy are +7read t*r,u/*,ut C*e..ai, 8*ic* ma9e+ it di--icult -,r me t, c,llect t*e i.-,rmati,. -r,m all, He.ce +am7li./ tec*.iCue *a+ bee. u+ed t, +elect t*e re+7,.de.t+ -r,m t*e 7,7ulati,.. T*e 7,7ulati,. i+ e+timated t, be G""" i.:e+t,r+. T*e +am7leB+ 7erce7ti,. re7re+e.t+ t*e 7,7ulati,.B+ 7erce7ti,.. Samp!in# ethod N,.'7r,bability +am7li./ met*,d i+ u+ed i. t*i+ +tudy. T*i+ re+earc* u+e+ D. convenience samp!in# P +i.ce t*e +ur:ey 8a+ c,.ducted acc,rdi./ t, t*e a:ailability a.d acce++ibility ,- i.:e+t,r+ a.d &. )uota samp!in# P becau+e +7eci-ied .umber ,- i.:e+t,r+ 8ere +ur:eyed 8it* 7re-ere.ce t, a/e a.d t*eir ,ccu7ati,.. Samp!e SiJe; F,r t*i+ +ur:ey, t*e +am7le c,.+i+t+ ,- G" re+7,.de.t+ 8*, are i.:e+t,r+ +elected -r,m di--ere.t a/e /r,u7+ a.d ,ccu7ati,.. T*e +iIe *a+ bee. decided a+ DH ,- t*e 7,7ulati,. -,r c,.:e.ie.ce ,- +ur:ey. T*e mai. criteria -,r t*e +electi,. ,- i.:e+t,r+ are t*at t*ey +*,uld *a:e i.:e+ted i. HSBC mutual -u.d+. Too!s for data co!!ection; T*e Cue+ti,..aire *a+ bee. c*,+e. a+ t*e t,,l -,r c,llecti./ data. It i+ i.te.ded t, 9.,8 *,8 muc* t*e re+7,.de.t+ 9.,8 ab,ut t*e 7r,duct+ a.d +er:ice ,- HSBC mutual -u.d+. Al+, t*e tec*.iCue u+ed by t*e c,m7a.y t, attract i.:e+t,r+ i+ al+, a++e++ed. 'esi#n of @uestionnaire; T*e Cue+ti,..aire -,r 7rimary data c,llecti,. 8a+ a structured, undis#uised Cue+ti,..aire ,- O7e. e.ded Cue+ti,.+ Cl,+e e.ded Cue+ti,.+ Dic*,t,m,u+ c*,ice Cue+ti,.+ Multi7le c*,ice Cue+ti,.+. Structured @uestionnaire *a+ t*e -,ll,8i./ -eature+ C,mm,. :,cabulary -,r all i.ter:ie8ee+. Que+ti,. -,rmat+ *a:e t*e +ame mea.i./ -,r all. All re+7,.de.t+ are i.ter:ie8ed i. eJactly t*e +ame 8ay. T*e Cue+ti,.+ are +et i. ad:a.ce 8it* t*eir ,rder a.d ra./e t*e +ame -,r all re+7,.de.t+. %ndis#uised @uestionnaire i+ -ramed +uc* t*at It d,e+ .,t *a:e 7er+,.al ,r +e.+iti:e Cue+ti,.+ 8*ic* t*e re+7,.de.t mi/*t -eel u.c,m-,rtable T*e re+7,.de.t+ are Cue+ti,.ed i. a direct ma..er. ANAL7SIS OF 'ATA; T*e a.+8er+ i. t*e Cue+ti,..aire are a.alyIedR tabulated a.d c,rre+7,.di./ c*art+ are dra8. ba+ed ,. t*e -i.di./+. T*e a.aly+i+ i+ d,.e ba+ed ,. t*e -,ll,8i./ Re+7,.de.tB+ a/e Re+7,.de.tB+ ,ccu7ati,. I.:e+tme.t i. mutual -u.d+ +, -ar O7i.i,. ,- i.:e+t,r+ ab,ut mutual -u.d+ a+ a /,,d ,7ti,. Rea+,.+ -,r i.:e+tme.t+ i. HSBC mutual -u.d+ Qua.tum ,- ri+9 i. mutual -u.d Sc*eme ,- Mutual -u.d+ t*at i.:e+t,r+ 7re-er Ty7e ,- 7la. t*ey 8,uld c*,,+e M,de ,- 7ayme.t t*ey 8,uld c*,,+e Retur. eJ7ected -r,m i.:e+tme.t+ i. Mutual -u.d+ Cu+t,merB+ 7erce7ti,. ,- t*e bra.d HSBC D1, RE3IE5 OF LITERAT%RE Private utua! Funds Can Trim Investment Costs I.:e+t,r+ be.e-it i. ma.y 8ay+ 8*e. t*ey 7,,l t*eir re+,urce+ i. mutual -u.d+. T*ey /et t*e i.:e+tme.t eJ7erti+e ,- t*e -u.d ma.a/er, a.d t*ey be.e-it -r,m ec,.,mie+ ,- +cale i. buyi./ a.d +elli./ +ecuritie+ a.d admi.i+teri./ t*e -u.d. Gr,u7 rate+ /, ,.ly +, -ar i. mutual -u.d+, *,8e:er. A.d t*ey d,.Kt +ati+-y t*e i.:e+t,r 8*, 8a.t+ t, cut i.:e+tme.t c,+t+ t, t*e b,.e. E:e. .,'l,ad mutual -u.d+ %t*,+e t*at d,.Kt c*ar/e a +ale+ c,mmi++i,. at t*e ,ut+et) a++e++ a..ual -ee+, c,mm,.ly D 7erce.t ,r m,re, -,r eJ7e.+e+. S,me -i.a.cial 7la..er+ ,--er t*eir clie.t+ t*e be.e-it+ ,- mutual'-u.d i.:e+ti./ at ab,ut *al- t*e u+ual ma.a/eme.t c,+t by -,rmi./ 8*at are e++e.tially 7ri:ate mutual -u.d+. Fi.a.cial 7la..er+ ca. -,rm limited'liability c,m7a.ie+ t*at 7,,l a++et+ -r,m a *a.d-ul ,- i.di:idual+ +ay -r,m u7 t, t8, d,Ie. 7e,7le. T*e 7la..er *ire+ a m,.ey ma.a/er t, i.:e+t t*e -u.d+ a.d a cu+t,dia. t, d, t*e rec,rd 9ee7i./. T*e -u.d it+el- i+ cu+t,miIed t, -it t*e .eed+ ,- t*e i.:e+t,r+ i. t*e /r,u7. T*e re+ult+ +a:i./+ ,- u7 t, G" 7erce.t ,. ma.a/eme.t eJ7e.+e+ a.d, t*r,u/* -u.d'ma.a/eme.t tactic+, a +maller taJ bite. Fi.ally, y,u *a:e t, 9ee7 y,ur eye+ ,7e. 8*e. i.:e+ti./ i. a 7ri:ate mutual -u.d, c*ec9i./ care-ully i.t, t*e Cuali-icati,.+ ,- t*e -i.a.cial 7la..er 8*, ,r/a.iIe+ it, t*e m,.ey ma.a/er 8*, ru.+ it, a.d t*e cu+t,dia. 8*, 9ee7+ t*e b,,9+. I.deed, 7ri:ate mutual -u.d+ -ly be.eat* t*e radar ,- t*e /,:er.me.tK+ re/ulat,ry a77aratu+. T*e +tate+ a.d t*e /,:er.me.t eJerci+e ,.ly mi.imal ,:er+i/*t ,. 7ri:ate mutual -u.d+ by limiti./ t*e .umber ,- i.:e+t,r+ i. a.y ,.e 7ri:ate -u.d a.d reCuiri./ ,.ly t*at t*e ,r/a.iIer ,- t*e -u.d 7ut t,/et*er a 7ri:ate'7laceme.t mem,ra.dum''a.al,/,u+ t, a 7r,+7ectu+ -,r a mutual -u.d''detaili./ t*e ,b@ecti:e+ ,- t*e -u.d a.d di+claimi./ a.y 7r,mi+e+ re/ardi./ 7er-,rma.ce. The Ris?s for the Re>ards I- y,u meet t*e i.:e+ti./ +ta.dard+, -i.d a -u.d t*at Cuali-ie+, a.d decide t, @um7 i., y,uKre ,. y,ur ,8.. I.deed, t*e i.di:idual 8*, i.:e+t+ i. a 7ri:ate mutual -u.d d,e+ +, at *i+ ,r *er ,8. ri+9, 8it* ., /uara.tee t*at t*e -u.d 8ill li:e u7 t, it+ 7r,mi+e+ ,r, e:e. 8,r+e, t*at t*e i.:e+t,r 8ill -all i.t, a +a-ety .et i- it d,e+.Kt. But t*e ad:a.ta/e i+ t*at y,u /et 7r,-e++i,.al m,.ey ma.a/eme.t a.d cu+t,dia. +er:ice+ -,r ab,ut *al- 8*at y,u 7ay i. a traditi,.al mutual -u.d. D1: FOR%LATIN* (7POT(ESIS Aim T, -i.d ,ut 8*et*er cu+t,mer+ 7re-er HSBC Mutual Fu.d+ a+ t*eir i.:e+tme.t ,7ti,. Nu!! (ypothesis T*ere i+ +i/.i-ica.t 7re-ere.ce by i.:e+t,r+ -,r HSBC Mutual Fu.d+. A!ternate (ypothesis T*ere i+ ., +i/.i-ica.t 7re-ere.ce by i.:e+t,r+ -,r HSBC Mutual Fu.d+. Factors considered for the hypothesis O7ti,.+ ,- t*e +c*eme Ty7e ,- 7la. M,de ,- 7ayme.t Rea+,. -,r i.:e+tme.t D1D EPIRICAL ANAL7SIS Table D D. A/e ,- t*e Re+7,.de.t+ Table +*,8i./ t*e 0AGE6 ,- t*e Re+7,.de.t+ S.NO. AGE NO. OF RES2ONDENTS 2ERCENTAGE D &G'#G year+ && DD & #$'FG year+ DG :- # F$'GG year+ D& ,D F Ab,:eG$ year+ D , TOTA4 G" 9-- Fr,m t*e ab,:e table, it i+ i.-erred t*at FFH ,- t*e re+7,.de.t+ are i. t*e a/e /r,u7 ,- &G year+ t, #G year+. #"H ,- t*e re+7,.de.t+ are i. t*e a/e /r,u7 ,- #$ year+ t, FG year+. &FH ,- t*e re+7,.de.t+ are i. t*e a/e /r,u7 ,- F$ year+ t, GG year+. O.ly &H ,- t*e re+7,.de.t+ are i. t*e a/e /r,u7 ,- ab,:e G$ year+. C*art D Interpretation; 2e,7le i. t*e a/e /r,u7 ,- &G'#G year+ are t*e maJimum i.:e+t,r+ i. mutual -u.d+. T*e rea+,. may be attributed t, t*e /r,8t* ,- MNC+ i. I.dia a.d t*e em7l,yme.t ,77,rtu.itie+ i. t*e 7ri:ate +ect,r. Re+7,.de.t+ i. t*e a/e /r,u7 ,- #$'FG year+ a.d F$'GG year+ al+, c,.tribute m,re i. mutual -u.d+ +i.ce t*ey -,cu+ ,. t*e retur.+ a.d ca7ital a:ailable -,r t*eir 7re+e.t u+e. T*,+e 8*, are i. t*e a/e ab,:e G$ year+ are t*e lea+t i.:e+t,r+ +i.ce t*ey are i. t*e :er/e ,- retireme.t a.d .,t muc* t, i.:e+t i. mutual -u.d+. Table & &. Occu7ati,. ,- t*e Re+7,.de.t+ OCCU2ATION NO. OF RES2ONDENTS 2ERCENTAGE 2r,-e++i,.al D$ :, Sel- Em7l,yed D" ,- G,:er.me.t Em7l,yed D& ,D 2ri:ate D& ,D TOTA4 G" 9-- Fr,m t*e ab,:e table, it i+ i.-erred t*at #&H ,- t*e re+7,.de.t+ are 8,r9i./ a+ 7r,-e++i,.al+ &"H ,- t*em are +el-'em7l,yed &FH ,- t*e re+7,.de.t+ are G,:er.me.t em7l,yee+ a.d &FH ,- t*em are 8,r9i./ i. t*e 7ri:ate +ect,r C*art &
Interpretation; 2r,-e++i,.al+ li9e d,ct,r+, e./i.eer+, la8yer+, etc i.:e+t m,re i. mutual -u.d+ -,r 8a.t ,- time a.d 9.,8led/e ,- mar9et. Sel- em7l,yed re+7,.de.t+ al+, i.:e+t i. mutual -u.d+ -,r +ecurity a.d +table retur.+. G,:er.me.t em7l,yee+ t,, *a:e a /reat i.tere+t i. mutual -u.d+ +i.ce t*ey eJ7ect *i/* retur.+ a.d +y+tematic i.:e+tme.t. 2ri:ate +ect,r em7l,yee+ *a:e +*,8. /,,d i.cli.ati,. i. i.:e+tme.t ,- mutual -u.d+ +i.ce t*e +er:ice a.d retur.+ are :ery /,,d. Table # Ha:e y,u i.:e+ted i. a.y Mutual Fu.d+S IN3ESTED NO. OF RES2ONDENTS 2ERCENTAGE 1e+ F( BE N, D , TOTA4 G" 9-- =e ca. i.-er t*at, (EH ,- t*e re+7,.de.t+ *a:e i.:e+ted i. at lea+t ,.e mutual -u.d +c*eme ,- a.y c,m7a.y. &H ,- t*e re+7,.de.t+ are i.:e+ti./ i. mutual -u.d+ -,r t*e -ir+t time i. HSBC. C*art #
Interpretation; Alm,+t (EH ,- t*e re+7,.de.t+ *a:e i.:e+ted i. mutual -u.d+ ,- ,t*er c,m7a.ie+ a+ 8ell a+ HSBC. E:ery,.e i+ a8are ,- t*e c,.ce7t ,- mutual -u.d+ a.d :ari,u+ +c*eme+ a:ailable u.der it. O.ly &H, 8*ic* i+ a :ery mea/re .umber ,- i.:e+t,r+ are .,t a8are ,- t*e +c*eme+ ,- mutual -u.d+. Table F D, y,u -eel t*at Mutual Fu.d+ are a /,,d ,7ti,. -,r I.:e+tme.tS MUTUA4 FUNDS ARE GOOD NO. OF RES2ONDENTS 2ERCENTAGE 1e+ FF EE N, & D N, idea F E TOTA4 G" 9-- Fr,m t*e table, 8e u.der+ta.d t*at EEH ,- t*e re+7,.de.t+ -eel t*at mutual -u.d+ are a /,,d ,7ti,. -,r i.:e+tme.t. O.ly &H ,- re+7,.de.t+ -eel t*at mutual -u.d+ are .,t a /,,d ,7ti,. -,r i.:e+tme.t. FH ,- t*e re+7,.de.t+ +ay t*at t*ey *a:e ., idea 8*et*er it i+ a /,,d ,7ti,. ,r .,t. C*art F
Interpretation; M,+t ,- t*e i.:e+t,r+ -eel t*at i.:e+ti./ i. mutual -u.d+ i+ a /,,d ,7ti,. +i.ce t*ey rea7 t*e dual be.e-it ,- /,,d retur.+ a.d al+, +ecured ca7ital. A -e8 i.:e+t,r+ -eel t*at it i+ .,t a /,,d ,7ti,. becau+e ,- *i/* e.try a.d eJit c*ar/e+. Small 7r,7,rti,. ,- t*e i.:e+t,r+ d, .,t *a:e a.y idea ,- it+ i.:e+tme.t :alue, 7r,bably becau+e ,- lac9 ,- 9.,8led/e ,. -i.a.cial mar9et+. Table G Ha:e y,u e:er i.:e+ted i. HSBC Mutual Fu.d+S IN3ESTEDIN HSBC NO. OF RES2ONDENTS 2ERCENTAGE 1e+ F( BE N, D , TOTA4 G" 9-- T*e ab,:e table +u//e+t+ t*at (EH ,- t*e re+7,.de.t+ *a:e already i.:e+ted i. HSBC mutual -u.d+. &H ,- t*e re+7,.de.t+ *ad .,t i.:e+ted earlier. C*art G
Interpretation; M,+t ,- t*em *a:e i.:e+ted i. +c*eme+ a.d 7la.+ ,- HSBC mutual -u.d+ a.d t*ey are i.tere+ted t, i.:e+t i. -uture t,,. A -e8 *ad .,t i.:e+ted earlier but t*ey 8ere i. t*e 7r,ce++ ,- i.:e+ti./ 8*ic* i+ +*,8. by t*eir 9.,8led/e ,- mutual -u.d+ ,- HSBC. Table $ I- ye+, =*at i+ t*e rea+,.S THE REASON NO. OF RES2ONDENTS 2ERCENTAGE Hi/* retur. &F DE Security DF ,E C,m7a.y ima/e D& ,D TOTA4 G" 9-- T*e table /i:e+ t*e rea+,. -,r i.:e+ti./ i. HSBC mutual -u.d a+ FEH ,- re+7,.de.t+ me.ti,. it t, be *i/* retur.+ &EH ,- t*em attribute it t, +ecurity &FH ,- re+7,.de.t+ *a:e decided ,. t*e c,m7a.y bra.d ima/e C*art $
Interpretation; Table E I+ t*ere ri+9 i. Mutual Fu.d I.:e+tme.t+S RIS< IN MUTUA4 FUND NO. OF RES2ONDENTS 2ERCENTAGE 1e+ &G G- N, &G G- TOTA4 G" 9-- C*art E
Interpretation; Table ( =*at i+ t*e Qua.tum ,- ri+9 y,u a++e++S QUANTUM OF RIS< NO. OF RES2ONDENTS 2ERCENTAGE Hi/* # C M,derate DG :- 4,8 #& CD TOTA4 G" 9-- C*art (
Interpretation; Table D! H,8 d, y,u rate t*e cu+t,mer +er:ice i. HSBC Mutual Fu.d+S RATE THE CUSTOMER SER3ICE NO. OF RES2ONDENTS 2ERCENTAGE Hi/*ly Sati+-ied &D D, Sati+-ied &! GD Di++ati+-ied & D TOTA4 G" 9-- Chart 9.
Interpretation; Ta2!e 9E; Rate t*e acti,.+ ta9e. -,r c,m7lai.t 5 /rie:a.ce+S COM24AINTS 5 GRIE3ANCES NO. OF RES2ONDENTS 2ERCENTAGE Immediately Re+7,.+e F# EC Delayed Re+7,.+e $ 9, N, Re+7,.+e D , TOTA4 G" 9-- Chart 9E
Interpretation; Ran? Corre!ation Aim T, -i.d ,ut 8*et*er t*e Occu7ati,. ,- i.:e+t,r+ i.-lue.ce+ t*e retur.+ eJ7ected -r,m mutual -u.d+ ,r .,t. OCCU2ATION D F &.G &.G RETURNS E?2ECTED F # & D .TG" D ' , '# ( D D ".G ".&G D.G &.&G TOTAL 9,1G RT D' $D & >. # '. RT D'$%D&.G)> %G" # )'%G") RT -1BB T*ere i+ C,rrelati,. bet8ee. t*e ,ccu7ati,. ,- t*e i.:e+t,r+ a.d t*eir eJ7ected retur. ,. HSBC Mutual Fu.d+ a+ t*e re+ult+ are le++ t*a. D, 8*ic* i.dicate+ t*at t*e+e t8, -act,r+ are 7er-ectly c,rrelated. Chi <s@uare Test Aim T, -i.d ,ut 8*et*er t*ere eJi+t cu+t,mer 7re-ere.ce -,r HSBC Mutual Fu.d+ Null Hy7,t*e+i+ T*ere i+ +i/.i-ica.t 7re-ere.ce by i.:e+t,r+ -,r HSBC Mutual Fu.d+. Alter.ate Hy7,t*e+i+ T*ere i+ ., +i/.i-ica.t 7re-ere.ce by i.:e+t,r+ -,r HSBC Mutual Fu.d+. 4e:el ,- +i/.i-ica.ce U T GH U T"."G De/ree+ ,- Freed,m T %m'D) %.'D) T %F'D) %#'D) T %#) %&) De/ree+ ,- Freed,m T $
Table 3alue TD&.G(& Te+t ,- Stati+tic T V %Oi'Ei) W& Ei Acce7ta.ceT".(G Re@ecti,.T"."G
CUSTOMER 2REFERENCE TOTAL OPTIONS 9. 9B 9D G- T7PE OF PLAN ,, 9E 9- G- O'E OF PA7ENT 9E B ,: G- REASON FOR IN3ESTENT ,D 9D 9, G- TOTAL E9 C- GB ,-- O2served fre@uency fo EApected fre@uency+fe/ +fo<fe/ +fo<fe/K, +fo<fe/K,
Fe 9. ,-1,G :1,G 9-1G -1G 9B 9G D 9C 91-C 9D 9D1.G <-1.G -1GC -1-:. ,, ,-1,G 91.G :1-C -19G 9E 9G : B -1C 9- 9D1.G <D1.G ,,1GC 91G 9E ,-1,G <,1,G G1-C -1,DB B 9G <C :C ,1D ,: 9D1.G E1,G CE1-C D1C ,D ,-1,G :1.G 9D1-C -1C 9D 9G <9 9 -1-C 9, 9D1.G <,1.G .1:B -1G TOTAL 9,1,GC De/ree+ ,- Freed,m T $ Table 3alue TD&.G(& Calculated 3alue TD&.&G$
Si.ce t*e :alue ,- calculated C*i SCuare +tati+tic -all+ 8it*i. t*e acce7ta.ce re/i,., 8e acce7t t*e .ull *y7,t*e+i+ .T*ere i+ +i/.i-ica.t 7re-ere.ce by i.:e+t,r+ -,r HSBC Mutual Fu.d+. ?TD&.G(& ANAL7SIS OF CRITICAL POSITI3E AN' NE*ATI3E RESPONSES ELPRESSE' &7 C%STOERS OCCU2ATION #& '&" THE REASON FE '&F FACTOR INF4UENCED GF 'F QUANTUM OF RIS< $F '$ DURATION F$ 'D& O2TION OF MUTUA4 FUND #E '&E T12E OF MUTUA4 FUND FF '&" A3ERA*E OF POSITI3E ASPECTS T,tal 2,+iti:e Re+7,.+e+ A:era/e ,- 2,+iti:e Re+7,.+e+ T '''''''''''''''''''''''''''''' O- Cu+t,mer+ N,. ,- Re+7,.+e+ #&$ T XXXXXXXX ! T F$.G! A3ERA*E OF NE*ATI3E ASPECT T,tal Ne/ati:e re+7,.+e+ A:era/e ,- .e/ati:e re+7,.+e+ T ''''''''''''''''''''''''''''''' O- cu+t,mer+ N,. ,- Re+7,.+e+ 99D TXXXXXX. ! TD$.&E O3ER ALL IN'ICATION OF C%STOER SATISFACTION AN' 'ISSATISFACTION
Sati+-ied H le:el Di++ati+-ied H le:el DC1G. ; 9C1,E