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Submitted to Bangalore University, Bangalore
In partial fulfillment of the requirement For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the Guidance of
Department of management studies SURANA College P G Centre, Bangalore Affiliated to Bangalore University, Bangalore 2004-2006
I owe a deep sense of gratitude and allegiance to Principal Prof. K.E. Radhakrishna and Dean of Studies Prof. H.R. Appannaiah for there encouragement and kind advice that came all along the completion of this report. I also express my heartfelt gratitude to HOD – Management Dr. H.V.S Raghavan for his enthusiastic co-operation, timely guidance and copious comments, which helped me to gain deeper insight into the horizons of this project. I also thank Mr. Vikas Pathania Branch manager, Mr. Abhishek Sinha consultant. Of Birla Sunlife Asset Management Company Ltd., Bangalore. It was there able-guidance and ever forwarding help and assistance, which has enabled me to attain success; I have been able to achieve this venture. I would be failing in duty if I do not express my gratitude to MR.VIJAYENDRA.S for his great sense of commitment to make the project report as systematic as possible. I thank also other members of teaching and non-teaching for their enriching ideas and suggestions. I owe a great deal of indebtedness to all my friends – my alter egos. Lack of space prevents me from thanking them individually. So to all of them I say a big thank you. Last, but far from least, I express my heartfelt gratitude to my beloved Parents, family members and those who directly or indirectly contributed their modicum in preparing this project work.
Basically the scope of the study was limited to Bangalore Regional office of “Birla Sunlife Asset Management Company Limited”. 7 . The researcher also extended his scope to analyze the liquidity position. An attempt is made to study the financial performance and the factors influencing the financial aspects. Inter branch comparison was not possible. Tables and Charts were drawn wherever required. Limitations of past records. This research has been conducted to know and understand the business operations and Fund Diversification of BSLAMCL. time constraints etc. Project Title: “PORTFOLIO ANALYSIS OF BIRLA SUNLIFE ASSET MANAGEMENT COMPANY LIMITED”.EXECUTIVE SUMMARY A study on Financial Performance of Birla Sunlife Asset Management Company is undertaken in order to know the financial. Portfolio Performance and Position of the Asset Management Company and to know the strength & weakness of the Company and to assess the profitability of the BSLAMCL. Absolute Returns and Compound Annual Return Since Inception is the tools used as a yardstick for evaluating the financial condition and performance of the BSLAMCL. have their impact on the study. For a systematic study. But consolidated financial reports of all the divisions in India were considered for analysis. strength and weaknesses of the AMC in handling the financial operations.
13-16 HISTORY OF MUTUAL FUND The Different Types of Fund 3 PRODUCT PROFILE Risk Vs Reward Past Performance Legal structure of Mutual fund Systematic Investment plan Tax benefits of Investing in Mutual Fund 29-39 4 COMPANY PROFILE Back Ground Overview Vision Mission Management team Focus area Awards 41-51 4.NO.1 5 The Mckinsy’s Seven S Model THE RESERCH DESIGN OF THE STUDY Statement of the Problem Plan of the Study Objective of the Study Methodology Limitations Scope 53-62 64-70 8 .TABLE OF CONTENTS SL. 1 PARTICULARS INTRODUCTION 2 Mutual Fund Direct Investment 18-27 PAGE NO.
6 Measuring of Mutual Fund 72-105 DATA ANALYSIS AND INTERPRETATIONS Equity Fund Income Fund Balance Fund Monthly Income Plan Long term floating rate Fund Industry AUM above 8000 FINDINGS SUGGESTIONS AND CONCLUSION ANNEXURES BIBLIOGRAPHY 7 8 9 10 107 109-110 112-119 121 9 .
22 30 58 81 82 83 84 87 88 91 92 95 96-97 99 100 102 10 . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 PARTICULARS THE DIFFERENT TYPES OF FUND TYPES OF RISK THE ORGANISATION STRUCTURE BIRLA ADVANTAGE FUND BIRLA DIVIDEND FUND EQUITY FUND EQUITY FUND COMPARISION BIRLA INCOME PLUS INCOME FUND COMPARISION BIRLA BALANCE FUND BALANCE FUND COMPARISION BIRLA SUNLIFE MONTHLY INCOME MONTHLY INCOME PLAN COMPARISION BIRLA FLOTING FUND BIRLA FLOTING RATE FUND AND COMPARISION INDUSTRY AUM ABOVE 8000 PAGE NO.LIST OF TABLE SL.NO.
28 54 11 . 1 2 PARTICULARS INVESTORS RISK SPECTRUM THE MCKEINSY’S SEVEN S MODEL PAGE NO.LIST OF DIAGRAM SL.NO.
By pooling their asse6s through mutual funds. consequential benefits of professional expertise. minus its expenses are shared by the fund’s unit holders. The interests of the Investors are protected by the SEBI. equity shares. Investors achieve economies of scale. The term ‘mutual’ is used in the sense that all its returns. market. money market instruments). The raison of mutual funds is their ability to bring down the transaction costs. which undertakes informed investment decisions and provides experience and resources for directly accessing the capital market. diversified portfolios. These pooled funds provide thousands of investors with proportional ownership of diversified portfolios managed by professional investment managers. expert professional management. who have no contact with each other. corporate and government bonds and equity shares of joint stock companies. bonds. which collect the savings of Investor’s and invest them in a large and well-diversified portfolio of securities such as money market instruments. knowledge. institutions for providing small Investor’s with avenues of investments in the capital Since small Investor’s generally do not have adequate time. WHAT ARE MUTUAL FUNDS? A mutual fund is a type of financial intermediary that pools the funds of investors who seek the same general investment objective and invests them in a number of different types of financial claims e..INTRODUCTION OF MUTUAL FUNDS Mutual funds are financial intermediaries. The advantages for the Investor’s are reduction in risk. 1993. 13 . Mutual funds are governed by the SEBI (Mutual Funds) Regulations. which acts as a watchdog. and liquidity of investment and tax benefits. they have to rely on an intermediary.g. A mutual fund is a pool of commingles funds invested by different Mutual funds are conceived as Investor’s.
Mutual fund investing offers certain advantages over direct investing. 2. Benefits of investing in mutual funds: 1. The function of mutual fund is not to insure its unit holders against losses by investments. It may involve investing in different types of financial claims e.. bonds etc.g. Availability Of Varied Portfolio Objectives:14 . compact way because each unit represents a pro rata share of the entire portfolio. Diversification may take several forms. As the market conditions and /or the expectation about the securities performance change. especially for retail investors. but to afford them the opportunity of investing small amounts in a large number of securities. A single event may defy prediction but the mass remains always practically the same or varies in ways that can be predicted.g. Mutual funds provide diversification benefits in a manageable. investment in bonds issued by different companies.. Risk Reduction through Diversification:The old axiom that it is not wise to put all eggs into one basket applies here. Their investment decisions are based on extensive research of the market conditions and financial performance of the individual company and specific securities. equity shares. or investment in securities offered by different issuers e. Professional Investment Management :The money pooled in the mutual fund is managed by the professionals who decide the investment strategy on behalf of the unit holders. these professionals churn their portfolios over accordingly with a view to provide high returns to the unit holders. Portfolio diversification is the major advantage stressed by mutual funds. These professionals choose the investments that best match the investment objective of the scheme as described in the scheme’s prospectus.MUTUAL FUNDS V/S DIRECT INVESTING Unit holders of mutual funds always have a choice of direct investing. Elimination of risk by combination is the application of the so –called Law Of Large Numbers.
Unit Holders Account Administration And Services:A major service offered by the mutual funds is liquidity. NAV of the scheme is to be calculated and reported daily. This wide range of schemes arose over the years to meet the requirements of the investors with different financial objectives. They can also buy and sell over internet. SEBI requires the open ended fund to stand ready to redeem the units on a daily basis at its NAV based price. The increasing breadth of mutual funds products and services offer investors a great deal of choice in picking up the scheme that is consistent with his riskreturn-liquidity requirements. Unit holders are updated on their investment status.There are more than 400 mutual fund schemes with wide variety of investment objectives and options available to investors in India. AMFI has classified mutual fund schemes into 6 broad categories according to their basic investment objectives: • • • • • • Growth Income Balanced Liquid and money market Gilt Equity linked saving schemes (ELSS) Each of these categories can be further classified into more categories. Convenience:Mutual funds provide investors with variety of products and increasingly broad array of customer services. Investors may purchase units either from agent or distributor or directly from the fund through its sales persons. Apart from this. telephone and ATMs. 3. Mutual fund units are easy to buy and sell. mutual funds provide many other services. These services include providing a variety of flexible and convenient plans to the investors like SIP. SWP and SWP. They receive periodical 15 . Liquidity refers to the speed with which an asset can be converted into cash without much loss of its economic value. 4.
As part of this regulation. 16 . Although there are no guaranteed returns and protection of capital. 6. Half yearly and annual reports are also published. bond funds offer higher returns to investors due to trading in bonds by funds. Further the SEBI has set ceiling with regard to expenses which can be charged to the investors. mutual funds are usually able to give better returns to investors than fixed income product. its investment methods and information about how to purchase and redeem units and information about risk the scheme is exposed to. Expenses above the set limits cannot be charged to the unit holders. all mutual funds provide full and complete disclosures about the funds written offer document. Regulatory Protection:Mutual funds are subject to strict regulations and oversight by SEBI. both equity and bonds. Their fund portfolio is disclosed regularly. SEBI requires the placement of a fee table at the beginning of every offer document. Similarly balanced funds and equity funds generally offer higher returns as against instruments of comparable risk. 7. 5. Higher Returns:Mutual funds trade in securities. While bank deposits offer fixed returns. The low costs are due to standardization and higher economies of scale (arising on account of collective investment character. This document describes the scheme’s investment objectives. Reduction In Cost Of Investment:Average cost of managing a rupee will be much lower for mutual funds than for an investor managing a diversified portfolio all on his own.statements of their accounts. its investment policies.
The first scheme launched by UTI was unit scheme 1964. The first phase was between 1964 and 1987 when unit trust of India was the only player. public sector mutual funds set up by public sector banks and life insurance corporation India (LIC) and general insurance corporation of India (GIC). Punjab national bank mutual fund in august 1989. 18 .bank ok Baroda in October 1992.This resulted in the total assets under management to grow to Rs 61. THE FIRST PHASE 1964 AND 1987:Unit trust of India was established on 1963 by an act of parliament .UTI had total asset of Rs 6.life insurance corporation establish its mutual fund in June 1989 but general insurance set up its mutual fund in December 1990.HISTORY OF MUTUAL FUND INDUSTRY GROWTH OF MUTUAL FUNDS:The Indian mutual fund industry has passed through three phases. THE SECOND PHASE 1987 AND 1993:1987 marked the entry non UTI.it was set up by the reserve bank of India and functioned under regulatory and administrative control of the reserve bank of India. State bank of India mutual fund is the first it is established in June 1987 followed by can bank mutual fund in December 1987. Indian bank mutual fund November 1989.028 crores at the end of 1994 and the number of schemes were 167.700 crores of asset s under the management (AUM).The end of second phase was between 1987 and 1993 during which period 8 funds were established (6 by banks and one each by LIC and GIC). bank of India in June 1990. By the end of 1988. In 1978UTI was de-linked from the RBI and the industrial development bank of India (IDBI) took over the regulatory and administrative control in place of RBI.
BOB. This signaled a growth phase in the industry and at the end of financial year 2000. THE FOURTH PHASE 2000 TO SINCE:In February 2003. The share of the private players has risen rapidly since then. which defined the structure of mutual fund and asset management companies for the first time. representing broadly the assets of us64 scheme. assured returned certain other schemes.Its registered with SEBI and functions under the purview of the mutual fund regulations. which in March 2000 more tan Rs 76. following the repeal of the unit trust of India act 1963was bifurcated into two separate entities.02. and with the setting up of a UTI mutual fund. and LIC . Several private sectors mutual funds were launched in 1993 and 1994. the mutual fund industry has entered its current phase of consolidation and growth. With bifurcation of the erstwhile UTI.26. PNB. conforming the SEBI mutual fund regulations and with recent mergers taking place among different private sector funds. The securities and exchange board of India (SEBI) came out with comprehensive regulation in 1993. Kothari pioneer mutual fund was the first fund to be established by the private sector in association with a foreign fund.13.726 crores under 386 schemes 19 . 2003. there were 33 funds with 391 schemes and assets under management with Rs.005 crores as total assets under management.849 crores. 1. 32 funds were functioning with Rs. The second is the UTI mutual fund ltd sponsored by SBI. One is the specific under taking of unit trust of India with asset under management of Rs 29. As at the end of October 31.000 crores of asset under the management. Currently there are 34 mutual fund organizations in India. The specific undertaking unit trusts of India and does not come under the purview of mutual fund regulations. 1. As on august end 2000.the asset is 1.THE THIRD PHASE 1993-2000:The third phase began with the entry of private and foreign sectors in the mutual fund industry in 1993.835 crores as at end of January 2003.
Foreign & Colonial. Though less remunerative. many of them are still around. shortly after the Wall Street Crash. The most important one was the emergence of unit trusts.MUTUAL FUND INDUSTRY IN UK:The very investment trust. By 1900 there were more than 100 investment trusts. With the advent of the First World War. this situation changed drastically. They were incorporated under the Companies Act. During the first period of its operation (till mid-1920s) mutual funds were in formative and experimental conditions. The years from 1900 to 1914 were marked by an increasing tendency on the part of British investment manager to invest their clients’ funds in American securities. this strategy enabled the survival of the industry. The pace of changes is very rapid. By the end of 1997 there were $237 billion of assets managed by 1455 open ended funds. Unit trusts conform to the basic pattern of openended investment funds in UK. However. Investment managers enjoyed huge powers about the sale and purchase of securities. The first unit trust appeared in 1931. Though some investment trusts failed during the British crash of 1890. From 1914-1918. These investment trusts are close-ended funds. The competition in UK fund industry has increased due to low entry barriers encouraging new players. set out its investment aims “to give investors of moderate means. some structural changes started taking place in the industry. In the USA many small investors lost their fortunes in the years following the Wall Street Crash of 1929. lots of changes have been observed in the industry. British mutual funds sold a large proportion of their American investments and a large part of the money obtained from the sale of the American stocks and bonds was promptly invested in the war loans of the British government. But not even one investment trust failed in those troubled years (1890s) in UK. In the last decade. most of them survived. resulting in steep increase in volumes. the same advantage as the large capitalist” in its prospectus of 1868. New products are launched and newer distribution methods 20 . 1880s was the period of boom for this innovate investment opportunity in UK. especially in stocks and bonds of American railways. These trusts became popular mainly because of the range of investment opportunities they made available to the investors.
One of the first investment trusts. The money market mutual fund was launched in this phase and this was in many respects close to the products offered by the banks.. Thus the mutual fund industry in UK is witnessing a restructuring wave and the outcome is powerful brand leaders. Close ended funds were the dominant form of mutual funds to mobilize money.Wallace Alexander that seems to have originated many of the ideas adopted by mutual funds. assets managed by mutual funds witnessed rapid and steady growth and mutual fund evolved into an established industry. eg. the most striking feature of this phase has been the innovation in the investment objectives. MUTUAL FUND INDUSTRY IN USA:The origin of mutual funds in the USA could be traced to the private trustee system in Boston during the second half of 19th century. New York and many other states.are explored. During this phase open ended funds became the dominant form of mutual funds. This widened the scope of competition for mutual funds with banks on account of similarity in the product. As the economy of the USA grew.I. mutual fund industry evolved in three phases.e. exchange privilege given to the investors to shift from one fund to another. Till this phase most of the money was mobilized under the objective of providing the benefit of diversification in equity investing. the Alexander fund began as an investment vehicle for a small circle of friends and eventually expanded to include the general public. Another significant development post 1970s has been the 21 . In the second stage. However. the period before 1940s was the stage of infancy of the mutual fund industry. the Boston Personal Property Trust. In the USA. Another important happening of that time was the innovative steps taken by the funds to improve the quality of investor servicing. by the end of 1940s. The first stage i. Like 1924s M. The third stage began in the 1970s. was organized in 1893.. the share of close ended funds started shrinking in favor of open ended fund.T and State Street Investors mutual funds. However it was the Alexander fund established in Philadelphia in 1907 by W. investment companies were formed in Boston.
The total assets under management by the end of 1997 were $4465 billion managed by 6900 funds. THE DIFFERENT TYPES OF FUNDS Types of Funds Capitalization Funds Investments Funds Open Ended Schemes Close Ended Schemes Growth funds Growth & income funds Fixed income funds Balanced /equity funds Money market funds/ liquids Specialty / sector funds 22 . thereby increasing the mobility of investors.reduction or elimination of sales load.
Such funds can issue and redeem units any time during the life of a scheme.There are wide verities of mutual fund schemes that cater to investor need. B) Tax advantage though budget 2000 proposal envisage a tax rate of 20% dividend on distribution made by debt funds. OPEN-ENDED SCHEMES:Open-ended schemes do not have a fixed maturity period. Any time entry option. growth fund and tax saving) as well as the number of units. there is no cap on the amount you can buy from the fund and the unit capital can keep growing. Whatever the age. These schemes have unlimited capitalization. In equity plans there is no distribution tax. Any time entry option. 23 . the fund continue to remain authorized investment vehicles. an open-ended fund allows one to enter the fund at any time and even to invest at regular intervals. signature verifications and bad deliveries. This provides ready liquidity to the investors and avoids reliance on transfer deeds. unit capital of open-ended funds can fluctuate on a daily basis. risk tolerance and return expectations. The mutual funds schemes can be classified according to their investment objective (like income fund. signature verifications and bad deliveries. financial position. The advantages of open-ended funds over closeended are as follows: A) Any time exit option. Open-ended schemes are preferred for their liquidity. This provides ready liquidity to the investors and avoids reliance on transfer deeds. the issuing company directly takes the responsibility of providing an entry and an exit. open-ended schemes do not have a fixed maturity. Hence. the issuing company directly takes the responsibility of providing an entry and an exit. Investors can buy or sell units at NAV-related prices from and to the mutual fund on any business day. These funds are not generally listed on any exchange.
The market price of the units could vary from the NAV of the scheme due to demand and supply factors. investors’ expectations and other market factors CLASSIFICATION ACCORDING TO INVESTMENT OBJECTIVES:Mutual funds can be further classified based on their specific investment objective such as growth of capital. 24 . However. Such funds invest in shares with a potential for growth and capital appreciation. 1. and hence growth funds provide low current income. Investors can buy into these funds during the period when these funds are open in the initial issue. After those such schemes cannot issue new units except in case of bonus or rights issue. Growth funds generally incur higher risks than income funds in an effort to secure more pronounced growth. current income or tax-exempt income.CLOSE-ENDED SCHEMES:Close-ended schemes have fixed maturity periods. GROWTH FUNDS:Growth funds primarily look for growth of capital with secondary emphasis on dividend. 2] Fixed-Income Funds invest in government or corporate securities that offer fixed rates of return are 3] While funds that invest in a combination of both stocks and bonds are called Balanced Funds. safety of principal. In general mutual funds fall into three general categories: 1] Equity Funds are those that invest in shares or equity of companies. you can buy or sell units of the scheme on the stock exchanges where they are listed. after the initial issue. They invest in well-established companies where the company itself and the industry in which it operates are thought to have good long-term growth potential.
Some invest in a dual portfolio consisting of growth stocks and income stocks. Growth funds are suitable for investors who can afford to assume the risk of potential loss in value of their investment in the hope of achieving substantial and rapid gains. Others may invest in growth stocks and earn current income by selling covered call options on their portfolio stocks. Growth and income funds have low to moderate stability of principal and moderate potential for current income and growth. 2. GROWTH AND INCOME FUNDS:Growth and income funds seek long-term growth of capital as well as current income. These funds invest in corporate bonds or government-backed mortgage securities that have a fixed rate of return.Some growth funds concentrate on one or more industry sectors and also invest in a broad range of industries. FIXED-INCOME FUNDS:Fixed income funds primarily look to provide current income consistent with the preservation of capital. Some fixed-income funds seek to minimize risk by investing exclusively in securities whose timely payment of interest and principal is backed by the full faith and 25 . They are suitable for investors who can assume some risk to achieve growth of capital but who also want to maintain a moderate level of current income. 3. entail less stability of principal than fixed-income funds that invest in higher-rated but lower-yielding securities. stocks paying high dividends. Within the fixed-income category. The investment strategies used to reach these goals vary among funds. which seek to maximize yield by investing in lower-rated bonds of longer maturities. or a combination of growth stocks. preferred stocks. They are not suitable for investors who must conserve their principal or who must maximize current income. funds vary greatly in their stability of principal and in their dividend yields. convertible securities or fixed-income securities such as corporate bonds and money market instruments. High-yield funds.
and usually higher than yields on bank savings account. SPECIALTY/SECTOR FUNDS:These funds invest in securities of a specific industry or sector of the economy such as health care. 5. BALANCED FUND:The Balanced fund aims to provide both growth and income. With yields that are generally competitive with . They invest in highly liquid. Utilities or precious metals. Although not insured. MONEY MARKET FUNDS/LIQUID FUNDS:For the cautious investor.credit of the Indian Government. Fixed-income funds are suitable for investors who want to maximize current income and who can assume a degree of capital risk in order to do so. Money can be withdrawn any time without penalty. they offer several advantages. technology. Money market funds are suitable for investors who want high stability of principal and current income with immediate liquidity. only the yield fluctuates. leisure. These funds invest in both shares and fixed income securities in the proportion indicated in their offer documents. these funds provide a very high stability of principal while seeking a moderate to high current income. The funds enable 26 . money market mutual funds are able to keep a virtually constant unit price. 4. banks and corporations and Treasury Bills. shortterm. virtually risk-free. money market funds invest only in highly liquid. Therefore. Ideal for investors who are looking for a combination of income and moderate growth. they are an attractive alternative to bank accounts. short-term debt securities of agencies of the Indian Government. Because of their short-term investments. top-rated money market instruments. 6.
Index funds generally buy shares in all the companies composing the BSE Sensex or NSE Nifty or other broad stock market indices. a more conservative approach than investing directly in one particular company.investors to diversify holdings among many companies within an industry. other specialty funds such as index funds give investors a broadly diversified portfolio and attempt to mirror the performance of various market averages. While sector funds restrict holdings to a particular industry. 27 . Sector funds offer the opportunity for sharp capital gains in cases where the fund's industry is "in favor" but also entail the risk of capital losses when the industry is out of favor.
the greater the potential reward.RISK VS. At the cornerstone of investing is the basic principal that the greater the risk you take. that causes investors to worry. This volatility can be caused by a number of factors -. You might find it helpful to remember that all financial investments will fluctuate. So risk has two sides: it causes the value of your investments to fluctuate. We all fear the possibility that a stock we invest in will fall substantially. there is no guarantee that you will end up with more money when you withdraw your investment than what you started out with. 29 . Even so. refers to the volatility -. It is this variability. The first thing that has to be kept in mind is that when you invest in mutual funds. you get what you pay for and you get paid a higher return only when you're willing to accept more volatility. The loss of value in your investment is what is considered risk in investing. REWARD:Having understood the basics of mutual funds the next step is to build a successful investment portfolio. Before you can begin to build a portfolio. There are very few perfectly safe havens and those simply don't pay enough to beat inflation over the long run. one should understand some other elements of mutual fund investing and how they can affect the potential value of your investments over the years. Here’s why. That is the potential of loss is always there. and those with the greater chance of losing value are also the funds that can produce the greater returns for you over time. Risk then.interest rate changes.the up and down activity in the markets and individual issues that occurs constantly over time. but it is precisely the reason you can expect to earn higher returns. inflation or general economic conditions. the opportunity for investment growth that is possible through investments in mutual funds far exceeds that concern for most investors. Or stated in another way. Different types of mutual funds have different levels of volatility or potential price change. uncertainty and potential for loss. But it is this very volatility that is the exact reason that you can expect to earn a higher long-term return from these investments than from a savings account.
Consider these common types of risk and evaluate them against potential rewards when you select an investment.TYPES OF RISKS TYPES OF RISK Market Inflation investment Interest rate Exchange rate Employee Credit Government policy All investments involve some form of risk. 30 .
When this happens. therefore. INTEREST RATE RISK:Changing interest rates affect both equities and bonds in many ways. Investors are reminded that "predicting" which way rates will go is rarely successful. A diversified portfolio can help in offsetting these changes. EXCHANGE RISK:A number of companies generate revenues in foreign currencies and may have investments or expenses also denominated in foreign currencies. 2. INFLATION RISK:Sometimes referred to as "loss of purchasing power. This change in price is due to "market risk". you run the risk that you'll actually be able to buy less. 5. MARKET RISK:At times the prices or yields of all the securities in a particular market rise or fall due to broad outside influences. Changes in exchange rates may. not more.1. Also known as systematic risk. 31 . Inflation risk also occurs when prices rise faster than your returns. 3." Whenever inflation rises forward faster than the earnings on your investment. have a positive or negative impact on companies which in turn would have an effect on the investment of the fund. the stock prices of both an outstanding. or repay your principal when the investment matures? 4. CREDIT RISK:In short. how stable is the company or entity to which you lend your money when you invest? How certain are you that it will be able to pay the interest you are promised. highly profitable company and a fledgling corporation may be affected.
necessary to attract key personnel and also to retain them to meet the changing environment and challenges the sector offers. the any of the schemes are linked to the equity performance of such companies and may be more volatile than a more diversified portfolio of equities. Intellectual properties of the key employees of the respective companies. Failure or inability to attract/retain such qualified key personnel may impact the prospects of the companies in the particular sector in which the fund invests. therefore. 32 . investments will be predominantly in equities of select companies in the particular sectors. trained and motivated personnel is very critical for the success of industries in few sectors. 7. It is. Having looked at the various types of mutual funds. Keep in mind the points listed below and you could at least marginalize your investment risk.6.e. Choose the wrong fund and you would have been better off keeping money in a bank fixed deposit. An industries' key asset is often the personnel who run the business i. availability of qualified. CHANGES IN THE GOVERNMENT POLICY:Changes in government policy especially in regard to the tax benefits may impact the business prospects of the companies leading to an impact on the investments made by the fund Effect of loss of key professionals and inability to adapt business to the rapid technological change. INVESTMENT RISKS:The sect oral fund schemes. Given the ever-changing complexion of few industries and the high obsolescence levels. Accordingly. one has to now go about selecting a fund suiting your requirements. CHOOSING A FUND:Mutual fund is the best investment tool for the retail investor as it offers the twin benefits of good returns and safety as compared with other avenues such as bank deposits or stock investing.
But remember that all funds carry some level of risk. A reading of the fund’s prospectus is a must to learn about its investment strategy and the risk that it will expose you to. DOES IT SUIT YOUR RISK PROFILE? Certain sector-specific schemes come with a high-risk high-return tag. Most prefer the balanced schemes. If the investor is totally risk averse he can opt for pure debt schemes with little or no risk. Growth and pure equity plans give greater returns than pure debt plans but their risk is higher. the portfolio manager who generated the fund’s successful performance may no longer be managing the fund. how it has performed in the past and the kind of returns it is offering to the investor over a period of time. Just because a fund invests in government or corporate bonds does not mean it does not have significant risk. KNOW YOUR FUND MANAGER:The success of a fund to a great extent depends on the fund manager. Funds with higher rates of return may take risks that are beyond your comfort level and are inconsistent with your financial goals. which invest in the equity and debt markets. The same fund managers manage most successful funds. Thinking about your long-term investment strategies and tolerance for risk can help you decide what type of fund is best suited for you. READ THE PROSPECTUS:-The prospectus says a lot about the fund. Also check out the two-year and one-year returns for consistency. How did these funds perform in the bull and bear markets of the immediate past? Tracking the performance in the bear market is particularly important because the true test of a portfolio is often revealed in how little it falls in a bad market. has the fund manager or strategy changed recently? For instance. Ask before investing. 33 .PAST PERFORMANCE:While past performance is not an indicator of the future it does throw some light on the investment philosophies of the fund. Such plans are suspect to crashes in case the industry loses the market men’s fancy.
34 . you should consider how your interest in that fund affects the overall diversification of your investment portfolio. sponsors. The legal structure also drives the inter-relationships between these constituents. LEGAL STRUCTURE OF MUTUAL FUNDS:Mutual funds have a unique structure not shared with other entities such as companies or firms. Maintaining a diversified and balanced portfolio is key to maintaining an acceptable level of risk. because it determines the rights and responsibilities of the fund’s constituents viz. the right equity mutual fund will pay off big -. WHAT IT COSTS YOU? A fund with high costs must perform better than a low-cost fund to generate the same returns for you.HOW WILL THE FUND AFFECT THE DIVERSIFICATION OF YOUR PORTFOLIO? When choosing a mutual fund. Finally. It is important for employees. Like stocks. transfer agents and of course. Similarly. agents and investors to be aware of the special mature of this structure.if you have the patience. custodians. it makes little sense to hold on to a fund that lags behind the total market year after year. It is useful to understand the mutual fund structure in two developed markets-USA and the UK before discussing the structure in India. don’t pick a fund simply because it has shown a spurt in value in the current rally. Ferret out information of a fund for at least three years. the fund and the asset management company (AMC). The one thing to remember while investing in equity funds is that it makes no sense to get in and out of a fund with each turn of the market. Even small differences in fees can translate into large differences in returns over time. trustees.
Underwriter. under one unit trust. mutual funds have two alternative structures. Only open-end management companies are technically called “mutual funds” in the USA. The Management Company is the Indian equivalent of an AMC. and are constituted along one unique structure as unit trusts. In the UK. mutual funds are set up as investment companies. while close-end funds are in the form of corporate entities although called Investment Trusts. Unit Trusts are regulated by the Securities and Investment Board. Custodian is the entity that holds the fund’s assets on behalf of the Management Company. in India. They must also be authorized by the relevant ‘Self-regulatory Organizations’. 35 . A Management Group is a family of management companies owned by a group of people or a corporation. The constituents of mutual funds in the USA are the Management Company.Mutual Fund Structure in the USA and UK:In the USA. For our purposes. which may be either a closed-end management company or an open-end management company. where two distinct ‘trust’ and ‘corporate’ structures are followed with separate regulations. A mutual fund in India is allowed to issue open-end and closed-end schemes under a common legal structure. Separate regulatory mechanisms exist for both types of entities. Therefore. Open-end funds are in the form of Unit Trusts. The Investment Company in turn appoints a management company. An investment company may be a corporation. India has a legal framework within which mutual funds must be constituted. all these legal entities may be broadly understood as mutual funds. Unlike in the UK. Investment Trusts are structured as companies and provisions of the Companies Act are applicable to them.e. which may be thought of as “the fund sponsors”. open-end and closed-end funds operate under the same regulatory structure. Structure of Mutual Funds in India:Like other countries. Underwriter of a fund is the distributor or the marketing company that sells the shares to brokers or to the public. at any point of time. Management Group and Custodian. a mutual fund may have several different schemes (open and close-end) under it i. partnership or a unit investment trust.
An Example:Month 1 2 3 4 5 Total Amount Invested 1000 1000 1000 1000 1000 5000 Purchase Price 10 12 15 18 15 70 No. By the process of regular investing one gets to invest in the highs as well as lows.67 372. a situation may improve before you actually notice it and an opportunity is lost. Secondly. an SIP does both automatically. Overall a SIP is a simple device that helps you to save and invest in a disciplined manner without having to time the market. Thus. If you opt for a SIP in a falling market and the market continues to fall.667 55. The emphasis on averaging out in a SIP obviously makes it most useful in case of an equity fund.556 66. 1996. an SIP does away with the need or effort to time the market. It can be thought of something akin to a recurring deposit where a part of your savings is automatically deducted from your account. A SIP does not guarantee returns or positive returns.The structure which is required to be followed by mutual funds in India is laid down under SEBI (Mutual Fund) Regulations. Firstly this is good for those who find saving an arduous task. an SIP imparts discipline to investing. The minimum amount can be as small as Rs 500 and the frequency of investment is usually monthly or quarterly. it is scary to invest. Systematic Investment Plan (SIP):A SIP is nothing but a planned investment programme. Whether it is the regular act of saving or investing. while there certain benefits of an SIP. So trying to find out the best time to invest is a tough task. then your investments will suffer a loss on the whole. and this helps in averaging out the volatility in the market. in due course of time. Even if each investment is small. which takes a small sum of money from you and invests it in mutual funds at regular intervals. This simple programme has a number of advantages. it can grow into a significant amount. of Units 100 83. This is where SIP helps the investor. as the volatility is greater here. to help build a pool of savings. there may be a doubt whether to wait for the circumstances to be better and when the markets are rising. When the market is falling. A SIP can be useful for a debt fund as well.223 36 . there are certain investment related ailments too.33 66.
16 Therefore.568 on liquidation.14. 13. the investor gets back Rs.00 What you actually pay = 5000/372.5955.223 * 16 = 5955. 1961.2%. The rate of service tax is 10. (a) Securities Transaction Tax:The Mutual Fund is liable to pay securities transaction tax at the prescribed rates on the value of transactions of purchase or sale of specified securities. of the Act. (the Act). (b) Income Distribution Tax:No income distribution tax is payable by the Fund. Tax Benefits to the Mutual Fund:Birla Sunlife Mutual Fund is a Mutual Fund registered with the Securities and Exchange Board of India and hence the entire income of Mutual fund will be exempt from Income-Tax in accordance with the provisions of the Section 10(23d) of the Income-Tax Act. The Mutual Fund will receive all income without any deduction at source under the provisions of the Section 196(iv).223 = Rs. being an open ended equity oriented fund (c) Service Tax:The Mutual Fund shall be liable for payment of service tax as recipient of services on “Business Auxiliary Service” provided by distributors of mutual funds/agents. Tax Benefits of Investing in Mutual Funds:The Tax benefits that are available to the investors investing in the Units of the Plans are stated as follows:- 1.568 Thus for an investment of 5000.43 Unit price at the beginning of the next month = Rs. 37 . the market value of investment = 372.Average Sale Price = 70/5 = Rs.
Accordingly. not apply to any income arising from the transfer of these units. is considered to be a short term capital asset. long term capital gains arising from the sale of unit of an equity oriented fund entered into a recognized stock exchange or sale of such unit of an equity oriented fund to the mutual fund would be exempt from income-tax. a unit of Mutual Fund. (b) Tax on Capital Gains:As per the provisions of section 2(42A) of the Act. 38 . it is treated as a longterm capital asset. Exemption from income tax under section 10(35) of the Act would however. income received by all the categories of unit holders in respect of units of the Fund will be exempt from income tax in their hands. held by the investor as a capital asset. if the unit of a Mutual Fund is held for a period of more than 12 months. provided such transaction of sale is chargeable to securities transaction tax. if it is held for 12 months or less from the date of its acquisition by the unit holder. (c) Long term Capital Gains:As per section 10(38) of the Act.To the Unit holders:(a) Tax on income:In accordance with the provisions of section 10(35) (a) of the Act.
Short-term Capital Gains: Wealth Tax:Units held under the Schemes of the Fund are not treated as assets within the meaning of Section 2(ea) of the Wealth Tax Act. 1957 and therefore. Gifting of Units:Units of Mutual Fund may be given as a gift and no gift tax and/or income tax will be payable by the donor or done. not liable to wealth tax. 39 .
The Company is registered with Securities and Exchange Board of India (SEBI) under the SEBI (Mutual Funds) Regulations. BGFL has been responsible for setting up successful joint ventures with Sun Life of Canada viz: Birla Sun Life Insurance Company Limited. Mauritius and is providing investment advisory services to offshore funds. Overview:With the opening up of the Indian Economy. each catering to a specific need or segment.COMPANY PROFILE:Background:Birla Sun Life Asset Management Company Limited (“the Company”) was incorporated on 5th of September 1994. the Aditya Birla Group promoted Birla Global Finance Limited (BGFL) and became a committed player in the Financial Sector. Canada. Birla Sun Life Asset Management Company Limited. The Company is also registered under the SEBI (Portfolio Managers) Regulations. India Advantage (Offshore) Fund. The Company manages the investment portfolios of Birla Mutual Fund. Birla Sun Life Distribution Company Limited and Birla Sun Life Trustee Company Private Limited. The Company encompasses a range of services. Mumbai. The Company is a joint venture between the Aditya Birla Group and Sun Life Financial Services of Canada. The share capital of the Company is equally owned by Birla Global Finance Limited . 41 .. BGFL has the following major activities: Capital Market Corporate Finance Retail Finance General Insurance Advisory On behalf of the Aditya Birla Group. insurance companies and high net worth investors. Canada. BGFL is listed on The National Stock Exchange and The Stock Exchanges. which is a wholly owned subsidiary of Sun Life Financial Services Company Inc.Flagship company of Aditya Birla Group’s Financial Services activities and Sun Life (India) AMC Investments Inc. 1996 and the principal activity is to act as an investment manager to Birla Sun Life Mutual Fund.. 1993 and provides portfolio management services to high net worth investors.
B. Managing Director.Ajmera. Joint Executive President & COO Mr. Senior Vice President – Retail finance Mr. investment banking and fund management. Dave. Puranmalka. Sushil Agarwal. N. E. M. Director Senior Management : Mr. Ravi Bubna. Vice President. Director Mr. Vision statement: 42 . Desai. Parind Badshah Vision:To be the most trusted name in investment and wealth management. Vice Chairman Mr.K. Arvind C Dalal. Kamlesh Vikamsey. who has over 30 years of experience in corporate banking. Mitra. K. CFO Company Secretary and Compliance Officer: Mr. Board of Directors: Mr. Director Mr. Sanjeev Bhargava. G. S. to be the preferred employer in the industry and to be a catalyst for growth and excellence of the asset management business in India. Director Mr.G. Senior Vice President – Corporate Finance Mr. B.Management Team:The company has a very competent team of professional headed by Mr.
Mission: To consistently pursue investor's wealth optimization by : • • • • • Achieving superior and consistent investment results Creating a conducive environment to hone and retain talent Providing customer delight Institutionalizing system-approach in all aspects of functioning Upholding highest standards of ethical values at all times Vision of BSLAMCL: "To actively contribute to the social and economic development of the communities in which we operate. his grandson. In so doing. Instead. this entails that the wealth that one generates and holds is to be held as in a trust for our multiple stakeholders. Chairperson” The Aditya Birla Centre for Community Initiatives and Rural Development Making a difference: Before Corporate Social Responsibility found a place in corporate lexion." —“Mrs.RajashreeBirla. In his view. it was unwise to keep on giving endlessly. sustainable way of life for the weaker sections of society and raise the country's human development index. he felt that canalizing resources to ensure that people have the wherewithal to make both ends meet would be more 43 . Aditya Birla weaved in the concept of 'sustainable livelihood'. build a better.D Birla espoused the trusteeship concept of management. which transcended cheque book philanthropy. As early as the 1940s. While carrying forward this philosophy. this means investing part of our profits beyond business. it was already textured into our Group's value systems. Simply stated. our founding father Shri G. for the larger good of society.To be the first reference of our customers as a leading integrated provider of complete financial services through superior value creation and technology. With regard to CSR.
who measure it on qualitative and quantitative parameters. he would be hungry again. Indian Rayon. Strategy of BSLAMCL Our projects are carried out under the aegis of the "Aditya Birla Centre for Community Initiatives and Rural Development". Our community work is a way of telling the people among whom we operate that We Care. our chairman Mr. he will eat it and the next day. Rajashree Birla. reaching out to more than 2 million people annually. Projects are planned after a participatory need assessment of the communities around the plants. Our focus is on the all-round development of the communities around our plants located mostly in distant rural areas and tribal belts. The objective is to phase out our presence over a period of time and hand over the reins of further development to the people. All our Group companies —Grasim. led by Mrs. and the thrust areas for our work ensuring performance management as well. Indo Gulf and UltraTech have Rural Development Cells which are the implementation bodies. Hindalco.productive. environmental responsibility and social commitment.700 villages. Along with internal performance assessment mechanisms. "Give a hungry man fish for a day." Taking these practices forward. In a holistic way thus. Instead if you taught him how to fish. helping us gauge the effectiveness and providing excellent inputs. he would be able to feed himself and his family for a lifetime. Kumar Mangalam Birla institutionalized the concept of triple bottom line accountability represented by economic success. with milestones and measurable targets. This also enables us to widen our reach. 44 . He would say. The Centre provides the strategic direction. our projects are audited by reputed external agencies. The footprint of our social work today straddles over 3. the interests of all the stakeholders have been textured into our Group's fabric. Each project has a one-year and a three-year rolling plan.
this provides a platform for advocacy. At another level. Unicef and the World Bank. merit and technical education. in their 5-year plans. Health and family welfare Mobile clinics :. draw from each other's experiences.toilets.Doctors visit once a week Medical camps :. Readymade garments. Habitat for Humanity International. and ensure that efforts are not duplicated. Balwadis (pre-school) Adult education Non-formal education Continuing education Scholarships for girls. At the same time. SIFSA. Aggarbati making. Jute project. Basket making. district authorities. training.the villagers. Some of the agencies we have collaborated with are UNFPA. durrie making Check dam Irrigation 45 . we network and collaborate with like-minded bilateral and unilateral agencies to share ideas. Focus Areas Of BSLAMCL:Our rural development activities span five key areas and our single-minded goal here is to help build model villages that can stand on their own feet. The Government has.Our partners in development are government bodies. CARE India. special funds earmarked for human development and we recourse to many of these. smokeless chullahs.General and issue-based Health training and awareness Sanitation . biogas Safe drinking water Mother and child health Reproductive health Awareness building Self-Help Groups:SGSY : Dairy. village panchayats and the end beneficiaries -. bee keeping.
Land development Soil and water conservation Pasture development Social forestry/ plantation activities/ nursery Horticulture Farmer training Infrastructure Development Roads Dams Community centres Houses Culverts Electricity Health centres Water channels Schools Social Causes: Widow / dowry-less mass marriages Women empowerment Awareness drives on knowledge. attitude and practices Awards CNBC TV 18 CRISIL – MUTUAL FUND OF THE YEAR AWARDS Open ended Income Fund – Birla Income Plus Open ended Income Short Term Funds –Birla Bond Plus 46 .
Liquid Plan ICRA-MFR 1 Open Ended Gilt Scheme .Short Term .3 Year Birla India Opportunities Fund ICRA-MFR 1 Open Ended Sectoral SchemesTechnology (3 Year) Birla Income Plus ICRA-MFR 1 Open Ended Debt Scheme .Long Term (3 Year) ICRA Online Mutual Fund Awards 2004 Presented to Birla Income Plus: Ranked MFR 1 in open-ended debt schemes .BNP PARIBAS Mutual Fund of the Year Award 2004 Presented to Birla Gilt Plus (Regular Plan) (Gr): Best Performing Open-Ended Gift Fund (three years) Mutual Fund of the Year Award 2004 Presented to Birla Equity Plan: Best Performing Open-Ended Equity Tax Saving (ELSS) (one year) Mutual Fund of the Year Award 2004 Presented to Birla MIP (Gr): Best Performing Open-Ended Monthly Income Plan Fund (three years) 47 .TV 18 .long term category (one year) CNBC .1 Year Birla Gilt Plus .Liquid Plan ICRA-MFR 1 Open Ended Gilt Scheme-Short Term .ICRA ONLINE MUTUAL FUND AWARDS 2005 Birla Gilt Plus .
technology category (one year) Presented to Birla Gilt Plus – Regular Plan: Ranked MFR 1 in open-ended gift schemes .ICRA Online Mutual Fund Awards 2004 Presented to Birla India Opportunities Fund: Ranked MFR 1 in open-ended sectoral schemes .short term category (one year) Presented to Birla Equity Plan: Ranked MFR 1 in open-ended equity linked savings schemes category (one year) CRISIL Best Fund Awards 2003 Presented to Birla Bond Plus: Best performing Open-end Income-Short Term Fund ICRA Online Mutual Fund Awards 2004 Presented to Birla Gilt Plus . 2004 Offshore. India Advantage Fund Presented to Awarded 1st Place in the Standard & Poor's Five Years Offshore Funds Equity India Sector.long term category (one year) Presented to Birla India Opportunities Fund: Ranked MFR 1 in open-ended sectoral schemes .technology category (three Years) Presented to Birla Gilt Plus .short term category (three years) Standard & Poor's Fund Awards.Liquid Plan: Ranked MFR 1 in open-ended gilt Schemes . 48 .Liquid Plan: Ranked MFR 1 in open-ended gift schemes .
2002 Offshore. R J Bhatt Awards 1999 Presented to BIRLA MUTUAL FUND The Best Mutual Fund the IRIS Mutual Fund Award in memory of R J Bhatt. India Advantage Fund Presented to BIRLA MUTUAL FUND 1st place in the standard & Poor's Five Years (Dec 1996-Dec 2001). R J Bhatt Awards 1999 Presented to BIRLA INCOME PLUS The Best Performing Scheme In the category of Income Funds the IRIS Mutual Fund Award in memory of R J Bhatt . Business Standard Presented to 49 . R J Bhatt Awards 1999 Presented to BIRLA ADVANTAGE FUND The Best Performing Scheme The category of Growth Funds the IRIS Mutual Fund Award in memory of R J Bhatt. Standard & Poor's Fund Awards.
The Best Equity Mutual Fund Scheme Award 1999 Motilal Oswal institute of wealth Creation Pioneers in Investor's Education Presented to BIRLA ADVANTAGE FUND Mr R J BHATT Mutual Funds Awards 2000 Presented to Birla Sunlife Asset Management Company Limited In recognition of BIRLA ADVANTAGE FUND The BEST GROWTH SCHEME Based on three years performance between August 1 .2000. 50 .MR.micropal. Standard & Poor's www.1997-July 31. Mr R J BHATT Mutual Funds Awards 2000 Presented to Birla Sunlife Asset Management Company Limited In recognition of BIRLA INCOME PLUS The Best Scheme Income Scheme Based on three years performance between August 1 .BHARAT SHAH Fund Manager of Year 1999.2000.1997-July 31.com 1998 Awards Presented to INDIA ADVANTAGE FUND The award for standing first place in the Standard & Poor's Micropal one year offshore Territories Equity India sector out of 36 funds.
Emerging Markets Awards 2000
Presented to Birla Sun life Asset Management Company Limited For having secured the first place for its risk-adjusted performance over three years with the India Advantage Fund in the Standard & Poor's fund Services ,Asia excl. Japan Equity Sector. "Birla India Opportunities Fund wins recognition at the CNBC India- BNP Paribas Mutual Fund of the Year Awards 2002. Birla India Opportunities Fund (G) Plan B has been ranked by Moody's Investor Services as... The Best Performing Open-ended Equity Sector- Technology Fund for One Year period. "
THE SEVEN S MODEL:The Seven Framework first appeared in “The Art of Japanese management” by Richard Pascale and Anthony Athos in 1981. They had been looking at how Japanese industry had been so successful, at around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of the four authors in 1978. It went on to appear in “In Search of Excellence” by Peters and Waterman, and was taken up as a basic tool by the global management consultancy McKinsey: It’s sometimes known as the McKinsey 7S model. This is because, Tom Peters and Robert Waterman, were consultants at McKinsey& Co at that time. The model starts on the premise that an organization is not just Structure, but consists of seven elements i.e., Strategy, structure, systems, style, staff, super ordinate goals (also known as shared values), and skills. According to them, managers, need to take account of all seven of the factors to be sure of successful implementation of a strategy-large or small. All the seven Ss are interdependent, and proper attention should be paid to each one of them. Those seven elements are distinguished in so called hard S’s and soft S’s. The hard elements are feasible and easy to identify. They can be found in strategy statement, corporate plans, organizational charts and other documentations. The four soft S’s however, are hardly feasible. They are difficult to describe since capabilities, values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organization. Therefore it is much more difficult to plan or to influence the characteristics of the soft elements. Although the soft factors are below the surface, they can have a great impact of the hard Structures, Strategies and Systems of the organization.
and norms. consisting of two components:Organizational Culture:. Structure:Basis for specialization and co-ordination influenced primarily by Strategy and by organization size and diversity Systems: Formal and informal procedures that support the strategy and structure.Strategy: Actions a company plans in response to or anticipation of changes in its external environment. (Systems are more powerful than they are given credit) The Soft S’s: Style/Culture:The culture of the organization.The dominant values and beliefs.Digram-1 DESCRIPTION:The Hard S’s:. which develop over time and become relatively enduring features of organizational life 54 .
A helpful application is to determine the current state of each element and to compare this with the ideal state. processes. What are they focusing attention on? Symbolism-the creation and maintenance (or sometimes deconstruction) of meaning is a Staff:The people/human resource management-processes used to develop managers.what the company does best. For example. Skills:The distinctive competences. The 7-s Model is a valuable tool to initiate change processes and to give them direction. fundamental ideas around which a business is build-Values/ must be simple. Management Style:. and ways of shaping basic values of management cadre. a change in HR-systems like internal career plans and management training will have an impact on organizational culture (management style) and thus will affect structures. and finally characteristic competences of the organization..More a matter of what managers do than what they say. ways of expanding or shifting competences Shared Guiding concepts. how do a company’s managers spend their time? fundamental responsibility of managers. 55 . have great meaning Super inside the organization even though outsiders may not see or Ordinate understand them. ways of helping to manage the careers of employees.If one element changes then this will affect all the others. usually stated at abstract level. Goals:. ways of introducing young recruits to the company. socialization processes. Based in this it is possible to develop action planes to achieve the intended state.
The mutual fund has been won the award for successfully implementing the channels to expand its geographical pressence despite underdeveloped communications infrastructure. 2.BSLAMC Limited.SEVEN S MODULE OF BSLAML 1. BSLAMCL’s Growth Strategy involves: Fully tap the growing market through higher incremental market share than competitor Adopt innovative strategies to expand the market Greater geographical penetration Introduction of new products in various segments. Structure:Structure of the Mutual Fund (BSLAMCL) The Mutual Fund Sponsors. Provide high quality customer convenience & service BSLAMCL has pursued the business strategy of becoming a universal mutual fund. Birla sun Life Insurance company Limited Trustee The Asset Management Company Custodian Statutory Auditors of the Schemes Legal Advisors 56 . It also follows the Strategy of building a diversified and derisked asset portfolio. STRATEGY:BSLAMCL has also bagged the ‘CNBC TV18 Award:-CRISIL Mutual Fund of the year Award for Birla Income Plus Plan B and Birla Bond Plus-Rental.
a company incorporated under the Companies Act. 1882. Statutory Auditors of the Scheme:This section is managed by S. Canada.Limited. purchases and redemptiojs on all business days. which is a wholly owned subsidiary of Sun Life Financial Services Company Inc. Trustee: Birla Sun Life Trustee Company Pvt. The Company is a joint venture between the Aditya Birla Group and Sun Life Financial Services of Canada. and Birla Global jFinance Ltd. 1956 is the trustee to the Mutual Fund vide the Trust Deed. 57 .The Mutual Fund: BSL mutual fund has been constituted as a trust in accordance with the provisions of the Indian Trusts Act. 1956 on Sep 5th. Sponsors:Sun Life (India)AMC Investments Inc. 5th 1994.. 1994 and was approved to act as an Asset Management Company for the Mutual Fund by SEBI on 1996..Billimoria & Co. The share capital of the Company is equally owned by Birla Global Finance Limited Flagship company of Aditya Birla Group’s Financial Services activities and Sun Life (India) AMC Investments Inc.(Liability restricted to seed corpus of Rs. Birla Sun Life Asset Management Company Limited (“the Company”) was incorporated on Sep. The registered office of the AMC is situated in Mumbai. Chartered Accountants of Mumbai. Canada. 3. The Mutual Fund has been registered with SEBI. The Trust Deed has been registered under the Indian Registration Act. Liquidity:The fund offers NAVs.B. 80811 State Code 11 dated 1996. vide registration number Registration No. 1908.1 lac).. by the Sponsors as per the terms of the Trust deed. The Asset Management Company:BSL Asset Management Company Limited (AMC) was incorporated under the Companies Act.
DIR. The mutual fund has also needed to manage the technology risks associated with migration General Manager General Manager General Manager General Manager 58 . Director. Rajesh Ajgaonkar. Jambusaria. etc Senior General Manager Senior General Manager Senior General Manager Senior General Manager BSLAMCL uses powerful-networked computer database known as finnacle. Center Retail Banking Spl.Legal Advisors:For and on behalf of the Board DIR. S V Prasad. Assets Banking The decision-making systems within the organization can range from management intuition. ORGANIZATION STRUCTURE Chairman Managing Director & CEO ( Joint Managing Director Joint Managing Director 4. It includes: Senior Senior Computer Systems General General Operational Manager Systems Manager HR Systems. Chief Executive Officer. S. N. Director Exec Director Project Fin & Wholesale Corp. Exec Director Exec. Manager and Company Secretary.Systems:Exec. DIR. N. to structured computer systems to complex expert systems and artificial intelligence. K. Mitra.
attitudes. 6. Application of Information Systems to effectively market to their target customers and to monitor and control risks. behavior.The dominant values and beliefs. how do a company’s managers spend their time/ What are they focusing attention on/ Symbolism-the creation and maintenance (or sometimes deconstruction) of meaning is a fundamental responsibility of managers behave? In BSLAMCL.Staff:59 . etc can be analyzed in a much more effective manner. In this way different consumer’ wants. wider and focused market reach and opportunities for cross selling.Style:Style refers to 2 components: Organizational Culture:. to gain competitive advantage and to improve overall productivity and efficiency of the organization. which is very unique and powerful in the industry. the style adopted is a participative one where in information can flow upwards to the top management from down.from its legacy systems to the new technologies necessary to manage the increasing volumes of transactions at net speed. Management Style:More a matter of what managers do than what they say. The mutual fund also has its own performance review and reward systems. which develop over time and become relatively enduring features of organizational life. Enhanced level of customer services like 24/7 services. 5. and norms. Internet Mutual fund etc Cost efficiency like reduction in traditional branch network/service staff. BSLAMCL has used Information Technology as a strategic tool for its business operations.
In addition to campus recruitment. teamwork is valued and success is rewarded. BSLAMCL views its human capital as a key source of competitive advantage. The size of the organization gives them the 60 . Robust ability-testing and competency-profiling tools are being used to strengthen the campus recruitment process and match the profiles of employees to the needs of the organization. BSLAMCL attracts the best graduates from the premier business schools of the country. pay and benefit negotiations and other industrial relations matters.The management believes that it has a good relationship with its staff. the development and management of human capital is an essential element of their strategy and a key management activity. competencies and experience into the organization and met the requirements of rapidly growing businesses. innovation is fuelled. BSLAMCL boasts of its ability to nurture individuals and provide them the space and empowerment they need to hope their talents. offering a wide range of career opportunities across the entire spectrum of financial services. A Six Sigma initiative has been undertaken for the lateral recruitment process to improve capabilities in this area. BSLAMCL encourages cross functional movement. enriching employees’ knowledge and experience and giving them a holistic view of the organ9isation while ensuring that the bank leverages its human capital optimally. Employee compensation is clearly tied to performance and BSLAMCL encourages the involvement of all its employees in its overall performance and profitability through profit sharing incentive schemes based on the financial results. BSLAMCL has a staff center which serves as a forum for grievances. A revised performance appraisal system has been implemented to assist management in career development and succession planning. BSLAMCL is one of the most preferred employers at leading business schools and higher education institutions across the country. BSLAMCL also undertakes lateral recruitment to bring new skills. It dedicates significant amount of senior management time to ensure that employees remain highly motivated and perceive the organization as a place where opportunities abound. Consequently.
drawn from industry. The key elements of their strategy have been to capitalize on new business opportunities. which conducts a series of training programs designed to meet the changing skill requirements of its employees. 61 . to developing a sustainable. Shared Values/Super ordinate Goals:BSLAMCL has constantly focused on building shareholder value as its primary objective.Skills:A company’s skills can includes hard assets such as financial strengths and dominant market share. but it takes the human and managerial input to translate these into a sustainable competitive advantage. Training programs are also conducted for developing functional as well as managerial skills. Their approach to shareholder value creation has extended beyond delivering near-term financial results. academia and from the company itself. These training programs include orientation sessions for new employees and management development programs for mid-level and senior executives. The competencies required at the entry level in BSLAMCL include: Drive for results Process Orientation Interpersonal Effectiveness Analytical Thinking Innovation & Team Effectiveness BSLAMCL has played an important role in setting up and supporting various programs imparting management education. long-term value proposition. BSLAMCL has a training center Khandala. The training center regularly offers courses conducted by faculty.unique ability to provide fast growth and high responsibility early in one’s career as well as multiple avenues to reach the top. 7. both national and international.
They believe these elements are essential enablers of future growth.build an strong brand and distribution capability. BSLAMCL constantly endeavors to create products that best met the specific needs of its clients and investors. establish robust systems and processes and develop their human capital. sets for itself high standards of service and constantly strives to improve upon them. BSLAMCL is safe. leverage technology. It therefore. simple and efficient. In addition. The goal is to ensure that dealing with 62 . BSLAMCL also seeks to deliver these products effectively and efficiently.
liquidity 63 .THE RESEARCH DESIGN OF THE STUDY TOPIC:- “PORTFOLIO ANALYSIS OF BIRLA SUNLIFE ASSET MANAGEMENT COMPANY LIMITED” INTRODUCTION:A study on Financial Performance of Birla Sunlife Assset Management Company limited is under taken in order to know the Financial Performance and Position.
Graphs are drawn for a better understanding of the concepts and theories. To compare the Three Months or Six Months. OBEJECTIVES OF THE STUDY: To study the financial position of the BSLAMCL To study the Financial Performance of the BSLAMCL. Long Term Floating Funds. Balanced Funds. The Absolute Return and Compounded Annual Return Since Inceptio belonging to different Asset Management Companies are calculated and the Return Percentage of each Scheme is worked out.position of the AMC and to know the strength & weakness of the AMC & to assess the Profitability of the BSLAMCL. This AMC is one of the leading Asset Management Company Limited in India and its doing extremely well in the Bangalore. Absolute Return and Compounded Annual Return Since Inception is the tools used as a yardstick for evaluating the financial condition and performance of BSLAMCL. 64 . To assess the Profitability of the BSLAMCL. STATEMENT OF THE PROBLEM:The Mutual Funds have become a runway success in the Investment Industryat present because there have moderate risk. these provides an opportunity to study the Portfolio Analysis of Birla Sunlife Asset Management Company Limited and find out the better avenues for better growth. PLAN OF THE STUDY:The Data Analysis and Interpretation is used to study the performance of the company. Monthly Income Funds. In BSLAMCL some of the schemes are not performing upto their potential in Equity Funds. The BSLAMCL reduse the risk of no/low experienced investors by providing right information on concerned Schemes of BSLAMCL. So. One Year or Two Year Performance of BSLAMCL’s Schemes with Competitors. To know the strength and weakness of the BSLAMCL.
How to Invest in the Funds/Schemes? Performance of the funds. Secondary Data:- Past records Annual reports of the company Company’s publications Websiteof BSLAMCL Analytical tools used: Absolute Returns of Asset Management Companies Compound Returs of Asset Management Companies LIMITATIONS: Some data are confidential to the AMC which was not possible to be used in the project. Primary data:- Primary data is collecting from Finance Executive and various departments of Bank. SCOPE:This project deals with finding out the risk of Investing in the funds. The study of 65 .METHODOLOGY:For the purpose of preparing the report the necessary information collected are divided into two heads that is primary and secondary data. Features of the funds. Annual Returns are generally calculated on past financial Performance and thus forecast for the future is based on past data.
He would have to make intelligent decisions on whether he gets an acceptable return on his investments in the funds selected by him. Bangalore. Only then would he be in a position to judge correctly whether his fund is performing well or not. Measuring OF Mutual Funds:The investor would naturally be interested in tracking the value of his investments. in cases where the fund has distributed to its investors a significant amount of dividend in the Interim period. Formula: For change in Absolute termsNAV at the end of the period-NAV at the beginning of the period For change in percentage terms (Absolute change in NAV/ NAV at the beginning)* 100 Limitations:This measure does not always give the correct picture. the stated objective of the fund and even depending on the current financial market conditions. whether he invests directly in the markets or indirectly through mutual funds. (b) Total Return:66 . Some of the most common measure are- (a) Change in NAV:If an investor wants to compute the Return On Investment between two dates. he can simply use the Per Unit Net Asset Value at the beginning and end periods.Portfolio Analysis limited to Birla sunlife Asset Management Company Limited. One must find the most suitable measure depending on the type of fund. There are many measures of fund performance. and calculate the change in the value of the NAV between the two dates in absolute and percentage terms. and make the right decisions. It is suitable for evaluating growth funds and accumulation plans of Equity and debt funds. but should be avoided for income funds and funds with Withdrawal plans. or if he needs to switch to another fund.
For example. Also. simple Total Return as calculated here is still inadequate as a performance measure. the expense ratio must be evaluated in the light of fund size. funds with small corpus size will have a higher expense ratio affecting investor returns than a large corpus fund. the fluctuations in the ratio across periods require an average over 3-5 years be used to judge a funds performance. 67 .This measure corrects the shortcoming of the NAV Change measure.equity or fixed income. It is not recommended for funds that concentrate primarily on capital appreciation. and differences of even 0. particularly debt funds. Formula: Given by ratio of Total Expense to Average Net Assets of the Fund Limitations: Though an important yardstick. If a fund’s income levels or returns are small.It is defined as its net investment income divided by its net assets for the period. because it ignores the fact that distributed dividends also get reinvested if received during the year. by taking account of the dividends distributed by the fund between the two NAV dates. (c) The Expense Ratio:This Ratio is an indicator of the funds efficiency and cost effectiveness.5% between two funds can affect the investors’ returns. Formula: For Total Return is [(Distribution + Change in NAV)/NAV at the beginning of the period]*100 Limitations:Although more accurate than NAV Change. Formula:. say a debt fund giving a gross return of 8%. The investor’s Total Return should take account of reinvestment of interim dividends. average account size and portfolio composition. and adding them to the NAV change to arrive at the total return. (d) The Income Ratio:This ratio is a useful measure for evaluating income-oriented funds. expense ratio becomes important.
(g) Cash Holdings:Mutual funds allocate their assets among equity shares. Small funds are easier to maneuver and can achieve their objectives in a focused manner with limited holdings.Limitations:The income ratio cannot be considered in isolation.(lesser of assets purchased or sold/ by the fund’s net assets) Limitations: This measure is meaningful only when evaluated against the backdrop of the fund’s investment objectives. They also gain through greater risk bearing and management capacity. (f) Fund Size:Fund size can affect performance. The percentage of a fund’s portfolio held in cash equivalents can be an important element in its successful performance. (e) Portfolio Turnover Rate:This ratio measures how many times the fund manager turns over his portfolio by buying or selling of securities in the market. because these not only indicate dissatisfaction on the part of investors. Large funds benefit from economies of scale with lower expense ratios and superior fund management skills. but also force the fund to 68 . it should be used only to supplement the analysis based on the expense ratio and total return. Cash also allows the fund a cushion against decline in the market prices of shares or bonds. consistent net redemptions. Formula: It is given by. A large cash holding allows the fund to strengthen its position in preferred securities without liquidating its other portfolios. debt securities and cash/bank deposits. and in terms of its ability to perform well on a consistent basis. A 100 percent turnover implies that the manager replaced his entire portfolio during the period in question. The fund must also guard against large.
Investors need to do their homework before making serious investment decisions.maintain large cash reserves lowering return on the portfolio. Availability of these data limits the use of this measure in practice. Therefore transaction costs have a significant bearing on the fund performance and its Total return. “Mutual Fund Insights”. (h) Transaction Costs:Transactions costs include all expenses related to trading such as the brokerage commissions paid. Useful information can be downloaded from such websites. For example. these transaction costs are difficult to quantify or document. For the investors. stamp duty on transfers. All securities have a bid price and an offer price. They should identify with their investment goals and evaluate a fund’s ability to meet those goals within the investment timeframe. There are many websites also dedicated to fund management industry in India. Mutual fund rankings and ratings and other evaluations of fund performance provide an important way for investors to compare their funds performance with other funds. a monthly publication of Value Research gives performance rankings of the schemes on the basis of total returns and risk measures for various categories of mutual funds. The fund sells securities at the bid price and buys them at the offer price. representing a cost to the fund investors. the most practical way to track the performance of mutual fund schemes is to consult publications that regularly supply performance numbers. Another important publication is ICICI bank’s Mutual Fund Review. However these are the ways by which a financial advisor can measure the performance of the funds. The offer price is usually higher than the bid price and the difference is the transaction cost. It becomes difficult for the fund to attain its objectives in such a situation. registrars’ fees and custodians’ fees. Limitation:While other costs are detailed in the fund prospectus or annual reports. 69 . Agencies like Cris-Risk (a subsidiary of Crisil) publish mutual funds ranking in the newspaper periodically.
Using sample statistical tools like percentage overages can collect the analysis. pictures etc. Data analysis is the process of placing the data in an ordered from. Alternatives the collected data may be analyzed by using diagrams graphs.Mutual fund :.DATA ANALYSIS AND INTERPRETATION Analysis And Interpretations COMPANY MARKET PLACE SAMPLE SIZE :. combining them with the existing information and attracting meaning from them. data analysis is carried out the date are first edited coded and tabulated for the proposed of analyzing them.Birla sunlife :. The term interpretation the term explaining the meaning and significance of the data so arranged. 71 . In this research the researcher has analyzed the data using percentage and graph. chats.100 In order to extract meaningful information from the collected data.Bangalore :.
this shows that they could target in the near future. of responde nts No.servant 40 35 30 25 20 15 10 5 0 Business House w ife Professional Govt .servant No. 72 .5) Occupation Occupation Business House wife Professional Govt . of respondents 35 15 40 10 Inference:The survey conducted from the sample size of 100 revaluated that majority of the respondents where professionals.
of respondents 45 25 20 10 No.00. of responde nts Below 1.000 Above 5.0003.000 3.000 45 40 35 30 25 20 15 10 5 0 No.000 1.00.000 1.000 Above 5.0005.00.000 3.00.00.00.00.6) Annual Income Annual Income Below 1.00.00.000-5.00. 73 .00.000-3.000 Inference:The majority of the respondents fall in the range of below 1lack categories this shows that they are accessible and responsive to the promotional strategies of BSLAMC where market penetration can be ensured.00.
Awareness about BSLAMC Awareness level of BSLAMC Unaware Aware 80 70 60 50 40 30 20 10 0 No. of respondents Unaware Aware Inference: In is seen that 70% of the people in Bangalore are aware that BSLAMC has a mutual fund scheme where as 30% of them are unaware. this awareness level is quite low compared to the popularity of BSLAMC.7. of respondents 25 75 No. this is due to the less aggressive marketing approach compared to other mutual fund. 74 .
of respondents assets children cash retirement Inference:The majority of the respondents feel that the investment which they made should accommodate for the periodical cash requirement and liquidity of investment which will help them to get benefits from investment.8. The Aim of your investment is Aim of the investment To acquire assets To plan for children To meet periodical cash requirement To save for retirement 45 40 35 30 25 20 15 10 5 0 No. of respondents 25 10 45 20 No. 75 .
76 . of respondents Strongly Disagree agree Agree Strongly disagree Inference: 30% of the BSLAMC mutual fund customers were very happy with the after sales service offered by BSLAMC mutual fund and 20% customers felt that BSLAMC mutual fund provided service not good in this way they were disagree and 40% of customers felt that BSLAMC mutual fund provided service is very good and again 20% of customers were unsatisfied with BSLAMC service.9. Mutual fund provide a better return on investment than other investment Better returns Strongly agree Disagree Agree Strongly disagree 40 35 30 25 20 15 10 5 0 No. of respondents 30 20 40 10 No.
of respondents Inference:Majority of people 30% Bankers and family. this is basically based on experience of the person who has invested in the schemes earlier. Source would you consult while making an investment decision? No. 77 .9. that person suggests whether to make the investment are not. friends. of respondents 25 15 30 30 Brokers and dealers Investment advisors Bankers Family and friends 30 25 20 15 10 5 0 Brokers and dealers Investment advisors Bankers Family and friends No. and for their investment decision.
This was partly due to the tax benefit that this instruments provides. The major reason for the poor investments.10. In India un like the US and EUROPE. of respondents 25 16 02 14 18 10 15 Inference• Most number of investors preferred savings current account as an investment instrument this is because of the high liquidity and safety that this type of instruments provides any first time investor starts his investment by opening a savings/current account. • Insurance is still seen as an investment as an investment rather than a risk protection product then it is understood from the interview with the investors that the high investment in insurance was also due to the rigorous marketing of these instruments by the insurance agents. Which of the following investment types you and your family holds ( as a % of your Savings) Type of investments No. • Fixed deposit formed the third major investment this investors preferred Fixed Deposit due to the higher return it provides safety and liquidity also played major part in the investors going for FD’s But the disadvantage with FD is that if it is withdrawn before its term. • The last preferred investment by Bangaloreans is the investment in gold. this is ever increasing rate of Land caused by the pace of development activities in Bangalore. • Mutual fund had a low investor’s preference and secured the sixth position. 78 . In mutual fund is that the investors are not aware of the investments opportunities in mutual fund. • The second major investment done was in insurance. • Post office savings formed the fifth investment preferred by the Bangalore. of respondents A small savings B Fixed deposit C Gold D Post office E Insurance F Mutual Fund G Real estate 25 20 15 10 5 0 A B C D E F G No. as a rule. • It is also seen that real estate played the fourth major investment preferred as for as Bangalore was concerned.
• The next majority feel that mutual funds are too risky an investment to be modes they feel that the safety aspect of the environment is lacking in mutual fund They feel that their principle amount itself is not safe in mutual fund. • No fixed return was the fourth reason for the investors moving away from mutual funds. 79 . and they are not aware of the schemes and how they operate etc. of respondents Inference:• The major reason for not investing in mutual funds by the investors is that most of them are not aware of the investment options available to them in mutual fund. of respondents 30 10 15 45 No. They feared that with the rate of return fluctuating constantly there is no safety for their principle investment. the investors preferred assured return investments even if the return from such investments were low. If you have not invested in mutual fund what is the reason for not investing Reason Risk Poor service No fixed return Unaware 45 40 35 30 25 20 15 10 5 0 Risk Poor service No fixed return Unaware No.11. They fell that it is too complicated and difficult to understand. • A small number of people also avoided mutual funds due to the poor service offered by them.
58 70. 2005) Plans Growth Plan Dividend Plan NAV per Unit (Rs. BIRLA DIVIDEND YIELD PLUS :. 2005 Returns (%) 27.11 Benchmark Returns (%) 12. Asset Allocation Pattern of the Scheme :– 80 .I.) 98. EQUITY FUND :1.An Open-Ended Equity scheme Scheme Objective:-To achieve long term growth of capital at relatively moderate levels of risk through a diversified research-based investment approach Asset Allocation Pattern of the Scheme :– Types of instruments Equities & equity related instruments Debt and money market instruments.To provide capital growth and income by investing primarily in a well diversified portfolio of dividend paying companies that have a relatively high dividend yield.SENSEX Return On Investment :- Date Aug 31.71 Benchmark Index :. BIRLA ADVANTAGE FUND :. Plans and Options :– Plans Options Normal Allocation (% of Net assets) 70-100 00-30 Nil Growth Plan Dividend Plan The Dividend Plan offers Payout and Reinvestment facility Performance of the Scheme :– NAV (as at July 31.An Open-Ended Growth scheme Scheme Objective:.77 2. Cash and money market instruments.
(%) 81 . 2003 143.Types of instruments Equities & equity related instruments Debt and money market instruments. 463.CNX 500 Return On Investment :- Date Aug 31. Cash and money market instruments. (Rs.63 10.Crs) Incept.28 Feb 7.74 Benchmark Returns (%) 43. 2005) Plans Growth Plan Dividend Plan NAV per Unit (Rs.41 Jun 19.) 36.60 Feb 24. 1994 278.80 Sep 28.45 EQUITY FUND BAF BDYP BMCF DSP ML-E FIPP HDFC Pru Gr ICICI GP Asset Under Mg. 2003 494.12 Feb 21. 1998 Date 1995 Sectoral Alloct. 2002 73. 2005 Returns (%) 49. 669.73 Aug 10 2000 263.31 Benchmark Index :. Plans and Options :– Plans Options Normal Allocation (% of Net assets) 90-100 Nil 00-10 Growth Plan Dividend Plan The Dividend Plan offers Payout and Reinvestment facility Performance of the Scheme :–NAV (as at July 31.09 Oct 1.
30 3 10 0 0 11 11 0 2 0 1 17 1 43 100 2.64 20.30 Cu.34 3 9 1 0 16 12 3 4 7 12 0 3 30 100 2.58 22.67 51.25 2.66 14.25 EQUITY FUND:- Absolute Returns(% ) 3 Months 6 Months 1 Year BAF BDYP BMCF DSPML.25 2.55 49.FIPP HDFC PruICICI E 18.49 8 3 7 0 13 15 4 6 5 6 8 0 25 100 1.03 57.80 Comp.38 20.10 53.58 20. Ratio 2.52 47.70 59.64 60.88 62.85 GP 26.76 26.69 59.98 52.80 58.91 18.36 2 Years 52.25 2.61 52.30 15.26 60.(%) 82 . Annual Return Since 23.IT Pharma FMCG Media Banks/FIs Oil & Gas Telecom Cement Metals Auto Engineerin g 9 14 8 0 16 0 10 0 0 4 6 4 4 4 8 0 17 10 3 0 4 10 14 1 25 100 2.70 16.01 55.28 Gr 14.18 16.80 52.57 21.25 2.45 Incep.33 14 14 10 0 13 0 4 0 0 1 2 3 37 100 2.46 22.25 2.25 2.64 5 2 6 7 8 4 0 10 6 8 6 3 36 100 2.31 % of Net Assets Entry load 2.40 15.45 21.61 68. Assets Others 29 Total 100 Total Recur Exp.
(%) ANNUAL RETURNS SINCE RETURN INCEPTION 70 60 50 40 30 20 1 0 0 70 60 50 40 30 20 10 Birla Advantage 0 Fund Birla Dividend Yield Plus Birla Mid Cap Fund DSP Merill Franklin LynchIndla Prima Equity Plus HDFC Growth Pru ICICI GP Birla Advantage Fund Birla Mid Cap Fund DSP Merill LynchEquity SCHMES EQUITY SCHMES Interpretation:The Birla Mid-cap fund has first highest absolute returns from last one or two years and Birla Advantage Fund has second highest absolute returns from last two years and Birla Dividend Yield Plus has third highest absolute returns from last two years compare 83 Franklin Indla Prima Plus Birla Dividend Yield Plus Pru ICICI GP HDFC Growth .Birla Mid Cap Fund :.Franklin Indla Prima Plus :. BAF BDYP BMCF DSPML-E FIPP HDFC Gr :.Prudential ICICI Growth Plan EQUITY FUND 3 Months 80 EQUITY 1 Year 2 Years FUND 6 Months Comp.Birla Dividend Yield Plus :. Annual Return Since Incep.Birla Advantage Fund :.DSP Merill Lynch-Equity :.HDFC Growth PruICICI GP :.
HDFC Growth Equity funds. INCOME FUNDS:BIRLA INCOME PLUS :.An Open-Ended Diversified scheme Scheme Objective:. the Birla Advantage Fund has moderate risk to invest in Equity scheme and the Birla Dividend Yield Plus has high risk to invest in Equity scheme. Franklin Indla Prima Plus.to DSP Merill Lynch-Equity. HDFC Growth Equity funds. at relatively moderate levels of risk through a diversified research based 84 . II.To generate consistent income. through superior yields on its investments. The Birla Mid-cap fund and Birla Dividend Yield Plus has equal compound annual return since inception and that two funds are first highest compound annual return since inception compare to DSP Merill Lynch-Equity. Franklin Indla Prima Plus.The Birla Mid-cap fund has low risk to invest in Equity scheme.
CRISIL Composite Balanced Fund Index Return On Investment :Returns (%) Benchmark Returns Date Aug 31. 1995 Rating Profile(%) G-Sec 29 AAA/P1+ A Cash/Call 55 0 16 AA+/P1/AA/AA 1 DSPMLB Apr 29.43 10. 2005 6.02 5. 1997 19 40 34 0 6 85 . 1998 19 57 10 0 14 HDFC HI Apr 11.investment approach. 1997 38 38 0 0 10 Pr ICICI-I June 19. Fixed withdrawal at monthly (minimum 6) or quarterly (minimum 4) 2. Date Oct 21. Cash and money market instruments.) 23. 1997 22 25 16 0 3 TIIB June 24.97 INCOME FUNDS:BIP Incep. 2005) Plans Growth Plan Dividend Plan NAV per Unit (Rs. 90% of Appreciation amount withdrawal at a quarterly (minimum 4) Performance of the Scheme :–NAV (as at July 31. This income may be compensated by price changes of instruments in the portfolio.49 Benchmark Index :. Plans and Options :– Plans Options Normal Allocation (% of Net assets) Nil 100 Nil Growth Plan Dividend Plan 1. Asset Allocation Pattern of the Scheme :– Types of instruments Equities & equity related instruments Debt and money market instruments.
50 2.10 4.97 11.89 10.68 0.5 INCOME FUNDS:Absolute Returns(%) 3 Months 6 Months 1 Year 2 Years CARSI (%) 5. Ratio Exit Load 0.44 11.74 2.96 3.93 3.22 BIP DSPMLB 7.78 BIP TIIB :-Birla Income Plus :-Templeton India Income Builder- DSPML-B :-DSP Merrill Lynch-Bond Pr ICICI-I :-Prudential ICICI .6 1.80 5.28 Pr ICICI.Income HDFC HI :-HDFC High Interest 86 .44 2.HDFC HI I 5.89 2.44 3.83 0 100 NA 0 100 NA Maturity(yrs) Total Recurring 1.78 0.62 Exp.98 33 100 NA 14 100 4.47 3.32 10.32 5.42 10.91 6.74 4.5 1.37 4.5 1.90 5.Others Total Average Portfolio 0 100 2.80 0.88 TIIB 5.70 0.6 1.94 3.
INCOME FUNDS 3 Months 9 8 7 6 Months 1 Year 2 Years RETURNS 6 5 4 3 2 1 0 Birla Income Plus DSP Merrill Lynch-Bond Templeton India Prudential ICICI Income Builder .Income HDFC High Interest INCOME SCHEMS 87 .
6 10. In annualised Return (%).HDFC High Interest Income INTERPRETATION:The Birla Income Plus has second highest of Compouded Annual Return Since Inception (%) i.4 ANNUAL RETURN SINCE INCEPTION 11.INCOME FUND Comp. Annu.8 Birla Income Plus DSP Merrill LynchBond Templeton India Income Builder INCOME SCHEMES Prudential ICICI . after Templeton India Encome Builder. It has moderate risk to invest in this scheme because since inception it is performing well.e.8 10.e.4 10.22 %. after Prudential ICICI Income.48.) i. 310. Cr.2 11 10. 88 . It has second highest Asset under Management (Rs. 11.2 10 9. (%) 11. Return Since Incep. it is not performing upto the potential because it has not done appropriate diversification of that fund.
00 Benchmark Index :. 2005) Normal Allocation (% of Net assets) 50-75 25-50 Nil Growth Plan Dividend Plan Payout & Reinvestment option Plans Growth Plan Dividend Plan NAV per Unit (Rs.49 Benchmark Returns (%) Not Available 89 . BALANCE FUND BIRLA BALANCE :.III.An Open-Ended Balanced scheme Scheme Objective:. Cash and money market instruments. 2005 Returns (%) 19. Plans and Options :– Plans Options Performance of the Scheme :– NAV (as at July 31.) 19.CRISIL Composite Balanced Fund Index Return On Investment :- Date Aug 31.To balance income requirement with growth of capital through balance mix of investment in equity and debt at relatively moderate levels of risk through a diversified research based investment approach Asset Allocation Pattern of the Scheme :– Types of instruments Equities & equity related instruments Debt and money market instruments.21 17.
66 Pr ICICI B 15.25 No Load Entry 2.97 Oct 4. :. 90 .41 44. 2000 58 42 100 2.DSP Merrill Lynch -Balanced. 2000 69 31 100 2. 1999 67 33 100 1.18 1 Year 31.98 35.25 7.38 DSP ML-B HDFC B IND VB Pr ICICI B BALANCE FUND:BB 3 Months 11.84 16.74 35. Date Equity Debt Total Total Recurring Exp.85 38.50 174. Annu.65 14.68 Aug 10. Ration as a % of Net Assets Entry Load(%) 2.) Incep.Birla Balance.89 17.37 242.97 BB DSP ML-B :.69 11. (Rs. 1999 68 32 100 2.25 126. (%) DSP ML-B HDFC B IND VB 13. Return Since11.94 42.BALANCED FUND:BB Asset Under Mgmt.62 Apr 17.82 11. 1999 60 40 100 2.62 12.65 May 14.91 Oct 7.98 6 Months 10.Crs.85 Incep.94 118.58 17.25 2.47 15.78 18.7 5.93 Comp.49 2 Years 31.26 37.32 36.13 33.00 2.
e. :. HDFC Balanced and Prudential ICICI-Balanced. one year. Six Months. BALANCE FUND 3 Months 50 45 40 35 30 25 20 15 10 5 0 Birla Balance DSP Merrill Lynch Balanced HDFC Balanced IND Vysya Balanced Prudential ICICI Balanced 6 Months 1 Year 2 Years RETURN BALANCE SCHEMES 91 .58.HDFC Balanced. 11.IND Vysya Balanced. two years.Prudential ICICI Balanced INTEREPRETATION:The Birla-Balance has fourth highest of Compounded Annual Return Since Inception (%) i. it is not performing well because of lack of diversification of Birla-Balance fund. It is high risk to invest in Birla balance because it is not performintg upto the potential compare to other competitors. :. From last Three Months. after DSP Merrill Lynch –Balanced. HDFC B IND VB Pr ICICI B :.
Annu. Return Since Incep. (%) 20 18 16 14 12 10 8 6 4 2 0 Birla Balance DSP Merrill Lynch -Balanced HDFC Balanced IND Vysya Balanced Prudential ICICI Balanced ANNUAL RETURN SINCE INCEPTION BALANCE SCHEMES 92 .BALANCE FUND Comp.
Scheme Objective:.CRISIL MIP Blended Index Return On Investment :- Date Aug 31. MONTHLY INCOME PLAN :- BIRLA SUNLIFE MONTHLY INCOME :.66 10. Asset Allocation Pattern of the Scheme :– Types of instruments Equities & equity related instruments Debt and money market instruments.An Open-Ended scheme. Nil Plans and Options :– Plans Growth Plan Dividend Plan Options Payout & Reinvestment option Performance of the Scheme :–NAV (as at July 31.37 Benchmark Index :. 2005 Returns (%) 10. 2005) Plans Growth Plan Dividend Plan NAV per Unit (Rs.Birla Sunlife Monthly Income is an open-end regular income scheme with the primary objective to generate regular income so as to make monthly and quarterly distributions to Unitholders and the secondary objective is growth of capital.38 MONTHLY INCOME PLAN:BSMI Asset Under 93 DSPMLSP PRIN MI Pr ICICI TMIF MI . Normal Allocation (% of Net assets) 00-15 15-100 Cash and money market instruments.IV.) 11.50 Benchmark Returns (%) 10.
57 11.75 Nil 0.45 3.64 .47 Feb 21. 2003 9 68 23 Total Total Recurring Exp. (%) 94 3.5 Nil 0.6 Nil 0.67 3.5 MONTHLY INCOME PLAN:Absolute Returns(%) 3 Months 6 Months 1 Year 2 Years Comp. 2003 16 66 18 104.73 3.73 11.58 10. Ration as a % of Net Assets Entry Load(%) Exit Load(%) 100 2.35 3.41 9.Mgmt.45 8.5 Nil 0.27 4.02 Nov 17.94 100 1. 2000 14 66 20 96. (Rs.69 8.36 3.6 Nil 0.23 Aug 18.43 10.05 9. Ann.60 Oct 14. 2000 12 81 7 265. 2002 10 79 11 455.76 9. Date Equity Debt Call/Cash 354.27 9.80 100 1.33 5.69 9.) Incep.98 10. Return Incep.01 100 1.65 BSMI DSPMLSP PRIN MI Pr ICICI TMIF MI 4.04 Since 11.Crs.11 8.18 11.10 100 1.52 4.62 May 23.
It is low risky to invest in the Birla Monthly Income Plan because since inception it has performed well compare to competitors schemes. BSMI :-Birla Sunlife Monthly Income DSPMLSP :-DSP Merill Lynch Savings Plus PRIN MI :-PRINCIPAL Monthly Income Pr ICICI MI :-Prudential ICICI-Monthly Income TMIF :. PRINCIPAL Monthly Income. Prudential ICICI-Monthly Income.e. 9.64. compare to DSP Merill Lynch Savings Plus.Tata Monthly Income Fund INTERPRETATION:The Birla Monthly Income Plan has first highest of Compounded Annual Return Since Inception (%) i. It has third highest absolute returns (%) i.35%.e. MONTHLY INCOME PLAN FUND 3 Months 12 10 6 Months 1 Year 2 Years RETURN 8 6 4 2 0 Birla Sunlife Monthly Income DSP Merrill Lynch PRINCIPAL Monthly Prudendial ICICI Savings Plus Income Monthly Income Tata Monthly Income Fund M ONTHLY INCOM E SCHEM ES 95 . Tata Monthly Income Fund. after DSP Merill Lynch Savings Plus. Prudential ICICI-Monthly Income. 11.
2 11 10.8 11. (%) 11.8 10. Cash and money market instruments.MONTHLY INCOME PLAN FUND Comp. Scheme Objective:. The scheme may invest a portion of its fixed rate debt securities and money market instruments Asset Allocation Pattern of the Scheme :– Types of instruments Equities & equity related instruments Debt and money market instruments.To generate regular income through investment in a portfolio comprising substantially of floating rate debt/money market instruments.6 10.6 11.An Open-Ended scheme. Ann. Return Since Incep. LONG TERM FLOATING RATE FUND :BIRLA FLOATING RATE FUND :.4 10.2 10 Birla Sunlife Monthly Income DSP Merrill Lynch Savings Plus PRINCIPAL Monthly Income Prudendial ICICI Monthly Income Tata Monthly Income Fund ANNUAL RETURN SINCE INCEPTION MONTHLY INCOEM SCHEMES V.4 11. Plans and Options :– Plans Options Normal Allocation(% of Net assets) Nil 00-100 Nil Growth Plan Growth and Dividend Plan Divedend Reinvestment 96 .
2005 Returns (%) 0. 2003 1 69 13 6 12 0 100 NA Pr ICICI LTFRF-A Sept 04.option Performance of the Scheme :–NAV (as at July 31.00 June 4. 2003 10 61 20 2 7 0 100 NA HDFC FRI Jan 08.70 1.36 Benchmark Index :.36 LONG TERM FLOATING RATE FUND BFRF Incep.5 DSPMLFR F May 12.04 NA 1.Crisil Liquid Fund Index Return On Investment :- Date Aug 31.56 10.25 AA+/P1/AA/AA 23 97 . 2003 1 64 2 10 0 100 0. 2002 5 66 22 4 3 0 100 1. 2005) Plans Growth Plan Dividend Plan NAV per Unit (Rs.) 11.85 % of Net Assets 0.48 Benchmark Returns (%) 0. Ratio as a 0. Date Rating Prof (%) G-Sec AAA/P1+ A Cash/Call Others Total Average Portfolio Maturity(yrs) Total Recurring Exp. 2004 8 58 10 9 8 6 100 NA TFRLT Feb 02.
46 5.42 5.11 5.01 4.01 4.48 5.LONG TERM FLOATING RATE FUND Annul.39 5.53 5.23 5.59 5.91 LONG TERM FLOATING RATE FUND 3 Months 6 6 Months 1 Year 2 Years RETURN 5 4 3 2 1 Templeton Floating Rate LongTerm Birla Floating Rate Fund DSP ML Floating Rate Fund Pru.58 4.00 5.18 5.16 HDFC FRI 5.71 PrICICI LTFRF-PA 5. Return (%) 3 Months 6 Months 1 Year 2 Years CARSI (%) BFRF 5.56 5.21 5.29 5.16 5. ICICI LT FRFPlan A 0 HDFC Floating Rate Income LONG TERM FLOATING RATE SCHEME 98 .08 TFRLT 5.21 DSPML FRF 5.23 5.29 5.58 5.
HDFC Floating Rate Income Pr ICICI LTFRF PA:-Pru. Eve from last Six Months the Birla Floating Rate Fund-Long Term Plan performing well. ICICI LT FRFPlan A 0 HDFC Floating Rate Income LONG TERM FLOATING RATE SCHEMES Since Inception (%) i. Return Since Incep. It has first highest Six Months Annualised Return (%) compare to DSP ML Floating Rate Fund. ICICI LT FRF-Plan A TFRLT :-Templeton Floating Rate Long-Term INTERPRETATION:The Birla Floating Rate Fund has second highest of compunded Annual Return LONG TERM FLOATING RATE FUND Comp. It has low risk to invest in the Birla Floating Rate Fund-Long Term Plan 99 . Annu. 5. HDFC Floating Rate Income. (%) ANNUAL RETURN SINCE INCEPTION 7 6 5 4 3 2 1 Templeton Floating Rate LongTerm Birla Floating Rate Fund DSP ML Floating Rate Fund Pru.21 %. BFRF DSPMLFRF HDFC FRI :-Birla Floating Rate Fund :. Templeton Floating Rate Long-Term. Pru.e.DSP ML Floating Rate Fund :. after Templeton Floating Rate Long-Term. ICICI LT FRF-Plan A.
VI. 2006 9026.55 ICICI 14915. HDFC Mutual Fund. 2006 9811. The Birla Mutual Fund has more % of change i.15 90.60 12707. Tata Mutual Fund.e.82 14042.23 Mutual Fund Tata Mutual Fund 8129. Franklin Templeton Investments.83 5.76 0. In Crores) Fund House Birla Mutual Fund HDFC Mutual Fund Prudential FEBRUARY 28.84 Investments 16000 14000 12000 10000 8000 6000 4000 2000 0 Jan-06 Feb-06 Birla Mutual Fund HDFC Mutual Fund Prudential ICICI Mutual Fund Tata Mutual Fund Franklin Templeton Investments INTERPRETATION:The INDUSTRY AUM ABOVE 8000 (Rs.64 JANUARY 30.09 Franklin Templeton 13344. Prudential ICICI Mutual Fund.94 13254.because from last Six Months of Annual Return and compunded Annual Return Since Inception (%).84 Change 785. it is performing well.61 5.12 4. 7.00 % Change 7.83 % and in 100 .13 881.17 7713.82 873. INDUSTRY AUM ABOVE 8000 (Rs.05 415.73 13589. In Crores) Companies are Birla Mutual Fund.
13 compare to HDFC Mutual Fund. Tata Mutual Fund.Rs in Crores 785. Prudential ICICI Mutual Fund. Franklin Templeton Investments Companies. CHANGE IN INDUSTRY AUM ABOVE 8000 Birla Mutual Fund HDFC Mutual Fund Prudential ICICI Mutual Fund Tata Mutual Fund Franklin Templeton Investments % CHANGE IN INDUSTRY AUM ABOVE 8000 Birla Mutual Fund HDFC Mutual Fund Prudential ICICI Mutual Fund Tata Mutual Fund Franklin Templeton Investments 101 .
2006. Birla Midcap Fund 10% on January 28th. 2. 4. Birla Dividend Yield Plus 10 and 8% on April.Dividend:The Board has recommended a dividend on Equity schemes:1. 102 . The declaration of dividend and payment subject to the approval of SEBI and the Board of the Directors of the Birla Sunlife Asset Management Company. 2006. 2006. 3. Birla MNC Fund 75% on February 26. 2006. Birla India Opportunities Fund 40% on March 16th.
As on April 31st 2006. 8.2 lakhs collectively made by them towards setting up the fund an accretions and addition to the corpus set up by the sponsors. Birla Advantage Equity Fund.FINDINGS 1. Birla Dividend Yield Plus Equity Fund. 5. 6. 4. Asset under Management have 4. As with any securities. Past performance of the sponsors.55. The liquidity of the schemes investments ar4e inherently restricted by trading volumes in the securities in which it invests. 3. The Sponsors are not responsible or liable for any loss resulting from the operation of the schemes beyond the contribution of an amount of Rs. 2. Birla Long Term Floating Rate Fund. Asset management Company/Fund does not indicate future performance of the schemes of the fund. Franklin Templeton is the first preference for the investors to invest in mutual funds and followed by BSLAMC which is in the second place for the investment preference. 104 . Birla Monthly Income Fund. Mutual funds and securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the schemes will be achieved. Birla Mid-cap Equity Fund. 7. the NAV of the units issued under the schemes can go up or down depending on the factors and forces affecting the capital market. Birla-Balance Fund.376 crores. From the study it was found that. Birla Income Plan. 22.
A person should never be misled by the name of a fund. Before investment a person should identify the degree of risk he can take before investing in any of the plans of BSL mutual fund. 6. A person should always keep track of the money. 2. For a customer who would like to invest in Debt fund. A person should learn the costs of redemption. Where is the fund manager investing your money? Excessive exposure to one particular sector should be avoided. Some funds have been given names denoting safety. It is important to track where the money is going.SUGGESTIONS 1. An ideal way for investment in mutual fund of BSLAMCL is through systematic investment plan (SIP). as it is more risky. 3. Before investing money it is always better to go through the fact sheet of all the plans of BSL Mutual fund. despite the fact that underlying investment in the portfolio are volatile and highly risky. 106 . 7. 8. it is best to opt for a growth option. 4. stability and low risk. and in Equity funds it is best to opt for a dividend option. 5. Sometimes investors are surprised to learn that they have to pay to get out of funds through back-end loads or redemption fees. Find out the redemption costs before you invest so you won’t be unpleasantly surprised when you redeem your shares. he may have to pay sales charges of up to 51% of your investment. A person should never invest in periodic payment plans unless he arils virtually certain that he will not have to redeem early. If he redeem early or do not complete the plan.
This is because of its good brand image and service which are essential elements for a successful organization. bank deposits and postal savings. So it could be concluded that investors are very much conscious about returns and risks involved in an investment. It could be concluded that people are well aware of BSL Mutual Funds when compared to other mutual fund companies. known for ease-of-use. From the study it could be concluded that large number of people are opting for mutual funds as their investment option even though there are many other options like stock market. Because of its brand Image it is attracting more number of investors which has proved to be the advantageous factor for BSLAMCL promotional activities from BSLAMCL are becoming the source of information for investors. and unique diversification capabilities. 107 . BSLAMCL is in the second position as far as investment preference is concerned. in that advertisements are playing a crucial role. liquidity.CONCLUSION:Mutual funds are very popular today. It could be concluded that Mutual Fund’s are going to be the future investment option. Investors look forward for the returns for an investment which is directly related with the risk factors in an investment.
The risks associated with the schemes launched by the mutual funds sponsored by these entities are similar type. In the year 1993. they also carry certain risks. government allowed public sectors banks and institutions to set up mutual funds. SEBI notified regulations for the mutual funds in 1993. Like all investment. Thereafter mutual funds sponsored by private sectors entitles were allowed to enter the capital market. SEBI formulates policies and regulates the mutual funds to protect the interest of the investors.ANNEXURES SECURITIES AND EXCHANGE BOARD OF INDIA SEBI INVESTOR ECUCATION PROGRAMME (INVESTMENT IN MUTUAL FUNDS) Introduction :Different Investment avenues are available to investors. All mutual funds whether promoted by public sectors or private sector entitles including those promoted by foreign entitles are governed by the same set of regulations. securities and exchange Board of India (SEBI) Act was passed. Mutual funds also offer good investment opportunities to the investor. History of Mutual funds in India and role of SEBI in mutual funds Industry:Unit Trust of India was the first mutual fund set up in India in the year 1963. The regulations were fully revised in 1996 and have been amended thereafter time to time to protect the interest of investors. The investors should compare the risk and expected yields after adjustment of tax on various investments while taking investment. The objectives of (SEBI) are to protect the interest of investors in securities and to promote the development of and to regulate the securities market. There is no distinction in regulatory requirement for these mutual funds and all are subject to monitoring and inspections by SEBI. As far as mutual funds are concerned. In early 1990s. It may be 109 .
They monitor the performance and compliance of SEBI Regulating by the mutual fund. All mutual funds are requiring to be registered with SEBI before they launch any scheme. Also. Unit Trust of India (UTI) is not registered with SEBI (as on January 15th. Mutual Fund Set Up With SEBI:A mutual fund is set up in the form of a trust. However. holds the securities of various types of schemes of the fund in its custody. The trust is established by a sponsor or more than one sponsor who is like promoted of a company.2002). asset Management Company (AMC) and custodian. trustees.mentioned here that unit’s trust of India9UTI) is not register with SEBI as a mutual fund (as on January 15th. SEBI Regulations require that at least two thirds of the directions of Trustee Company or board of trustees must be independent that is they should not be associated with the sponsors. 50% of the directors of AMC must be independent. 2002). Custodian. Asset Management Company (AMC) approved by SEBI Managers the funds by making investments in various types of securities. The trustees of the mutual fund hold its property for the benefit of the unit holders. who is registered with SEBI. BALANCE SHEET OF BSLAMCL AS ON 31ST MARCH (in Crs) 110 . which has sponsor. The trustees are vested with the general power of superintendence and direction over AMC.
others(including provisions) Total 20002001 19682 95269 10386 76903 --7966 14 986602 158747 53326 774528 49147 49147 0 56563 14220 0 3352 38991 1207263 20012002 22036 109226 18443 80454 --10246 83 1637821 262186 188064 1187571 103279 102418 862 101297 38056 0 5565 57676 1973659 2002-2003 96303 563554 24943 80454 --456201 1956 3208511 273615 249700 2685195 4921866 419427 727589 1620758 81733 0 228951 1306769 10410992 2003-2004 96266 632065 55143 80216 --12734 463467 4816931 368944 379321 4068665 3430242 2841074 589168 1705693 103055 0 161917 1440721 10681197 2004-2005 96.338 5.416 6. Bal of profit Deposits A.024 1.858 521. Borrowings in India b.801. Savings bank deposits C.752.855 3. Demand deposits B.665 536. Share premium c.746 111 .810. Term deposits Borrowings a. interest accrued d.949 19.074. Statutory Reserve b. Capital Reserve d.333. Revenue & other Reserve e.Liabilities Capital Reserves & Surplus a. Borrowings outside India Other liabilities a.640 739. Inter office adjustment c. B/P b.
286 6.Investments A.241 503.Investment o/s india i. Bill purchase & discounted b.A 9.641 786. Tax paid d. Subsidary & joint ventures iii.A under construction c. cash in hand 2. Debentures & Bonds v. govet.344 12. premises b. Inter office adjustments b. Fixed Assets a.274. Shares iv. interest accrued c. Bal with banks in india 4.Advances a.797 29. subsidary & joint venture vi. Others B.286 Priority sector advances include in 7 49737 8.881 121.006 365. F. security ii. others Total 22212 12800 0 9412 36132 486 11474 3676 10 20486 1207263 38113 17385 0 20727 54346 512 22474 10514 11 20835 1973659 423934 140407 226997 56530 415828 0 184738 98701 50 132339 10410992 406073 154025 0 252048 752052 10347 195826 141403 80 404396 10681197 405.793. term loans 2000-01 3145 69044 31800 235780 1748 341517 441668 441668 281494 0 16095 113722 0 30357 0 0 0 0 365734 70129 257767 37838 2001-02 10074 113092 54284 178312 3607 359369 818686 817891 407044 4149 12512 307008 0 87177 795 0 0 795 703146 108704 497091 97350 118466 2002-03 24590 152857 281821 675515 143852 1278635 3589108 3587896 227223 7046 190865 64363 60673 413445 1212 0 145 1067 4703487 165412 240251 4297824 198591 2003-04 33647 454967 81058 63743 15484 648899 3546230 3545373 2554858 3445 164241 568992 78068 175770 857 0 145 712 5327941 43764 313402 4970775 2004-05 37. other F.260 5.522. Bal with banks o/s india 6. In India i. o/d & loans c. stationary & stamps e.559 154.Bal with RBI 3. Other approved securities iii.209. Cash credits.888 112 . Security ii.552 51.66 4.Money at call short notice 5.others 7.other Assets a. Govt.Assets 1.586 847063.
telegrams. law charges i.1 23 113 . insurance k. building & others e. directors fees. NP(loss) on revaluation of Investments d. other expenditure l. interest/discount on advances/bills b. advertisements and publicity e. Operating Expenses a.8 1252688 96 04 306. Interest on deposits b.Interest Earned a. exchange & brokerage b. Net profit on sale of investments c.) 2002-03 2003-04 2004-05 889. others II. Postage.4 92 257. Interest Expended a. Rent. telephone j. Other Income a. NP (loss) on Sale of land.195. repairs and maintenance 66695 58050 2355 6289 15331 3637 1801 823 388 2479 7 14 50 687 1009 369 4066 83767 72544 3205 8018 33429 5171 3648 2417 1433 3642 18 29 54 2084 637 11584 2711 155892 138893 4784 12216 62258 14718 6628 3530 797 6409 16 31 151 3772 1415 16958 7833 794400 247971 18337 528092 201169 40302 11158 7472 5818 50594 13 150 852 10415 2518 57391 14487 25 2000-01 2001-02 85287 34791 40971 9462 64 19405 6708 10114 0 -13 2239 358 104692 124213 57091 55573 10867 683 22001 13953 1921 1377 -13 4161 601 146214 (In Crores. Miscellaneous income Total (I+II) Expenditures and Provisions 701. taxes & lighting c. NP(loss) on exchange transaction f. On bank property f. Payables & provisions for employees b. Income on investments c. interest on bal with RBI d. dep. allowing and expenses g/ auditors fees and expenses h. Printing and stationary d. commission. others IV.5 III.4 215193 77167 123380 12262 2384 57466 22978 30571 -1460 -6 3730 1653 272659 936806 601624 291044 23557 2058 315883 79179 168338 11 -650 1024 67981 1.Profit &Loss Account of BSLAMCL Particular Income I . Interest on RBI/inter bank borrowings c.
7 11 1. Profit(loss) Total (III+IV+V+VI) 12137 82026 10530 104692 12908 117197 16110 146214 28679 218150 25830 272659 136501 995569 120618 1252688 38 958.6 48 163.8 96 114 .195.73. provisions and Contingencies Total expenses @ VI.5 V.
00.servant 8. Educational qualification:………………………… 6.000-3.QUESTIONNIARE 1. married Unmarried 4.000 3. Awareness level of Birla sun life mutual fund Unaware 9. The aim of your Investment is: To acquire assets such as Car. Annual income: Below 1. 00. Mutual funds provide a better return on investment than other investments: Strongly agree Agree Disagree Strongly disagree 115 Aware . Address 3.000 1. 00.000-5. Martial status: :……………………… :…………………………… ……………………. 00. House… etc To plan for children future Tom meet periodical cash requirement and to have liquidity of investment To save for retirement 10.000 Above 5. 7. 00.000 House wife Govt. Occupational (please tick): Business Professional Others specify……………………. Name 2. of dependants: …………………… 5. No. 00.
11. Which of the following investments types you and your family holds (as % of your Savings) Small savings Gold Insurance Government security 13. Whom would you consult while making an investment decision? Brokers /dealers Banker’s Investment advisors Family and friend/News Paper 12. If you have not invested in mutual funds what is the reason for not investing Risk Poor service No fixed return Unaware of investment options Fixed Deposits Stock Mutual fund Signature…………………… … 116 .
Manual of SEBI : Ravi Puliani : Preeti Singh : Prasanna Chandra : Business times : Connect : Broucheres : Investime : www.birlasunlife. Other Website 118 .amfiindia. Investment Management 3. Other Website 10. Monthly Journal of BSLAMCL 6. Website 9.com 2.com : www.BIBLIOGRAPHY 1. Broucheres of BSLAMCL 7. Monthly Investime of BSLAMCL 8.com : www. The Investment Games 4.SEBI. Magazine 5.
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