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TABLE OF CONTENTS Objective of Study Literature Review Research study Research objectives Research Methodology Research Methodology adopted Indian Mutual Fund Industry History of Mutual Fund Introduction of Mutual Fund Types of Mutual Fund Structure of MF Industry in India Advantages of Mutual Fund Role of SEBI in Mutual Fund SEBI’s Code of Conduct About UTI Mutual Fund Other Players In Mutual Fund Industry Data Analysis and Interpretation Conclusion & Recommendation Annexure Questionnaire Bibliography
OBJECTIVE OF STUDY
This project aimed at finding out the present perception, investing attitude and awareness towards Mutual Fund of people in Delhi. A study was necessary to analyze the above stated requirement. A survey was therefore conducted to find the prospective customer along with their perception and investing attitude towards Mutual Fund. Objective was first defined and then questionnaires were developed and administered to different class of people.
The result obtained were analyzed and recommendations drawn which are presented in the report.
The objective of the project was to know about the present perception, investing attitude and awareness of people towards mutual funds
The overall objective may be divided into the following: • Selling of mutual Funds: i) To know the market with regards to the investment activities of
people. ii) To understand as how people had their experience with Mutual funds.
• Know the Customer and prospects: i) ii) Expectations of peoples towards Mutual Funds. LITERATURE REVIEW The principal task of marketing management is to fulfill the aspiration of consumer. It is thus imperative to understand what the consumer want. or what are their sources of information and influence processes etc. Thus market research acts a link between the consumer and the marketer. evolve better marketing program to serve the interest of consumers. and in general. . evaluate and monitor marketing actions. how they make the choice. In this process and organization can identify new opportunities in the market. To Study the other factors that are related with while investing in Mutual Funds schemes.
generate. refine and evaluate marketing actions. The steps of marketing research process are- . and public to the marketer through the information-information used to identify and define marketing opportunities and problems. STAGES IN THE MARKET RESEARCH PROCESS In planning and designing a specific research project. and improve understanding of marketing as a process.ROLE OF MARKET RESEARCH “Marketing research is defined as the systematic and objective search for and analysis of information relevant to the identification and solution of any problem in the field of marketing”. customer. Marketing research is the function which links the consumer. it is necessary to anticipate all the steps that must be undertaken if the project is to be success in collecting valid and reliable information. monitor marketing performance.
Marketing Research Process Defining the problem Statement of the Research Objective Planning a Research Design Planning a Sample Collecting the Data Analyzing the Data Formulation of Conclusion Prepare and present the Report .
. Objective • • To study the investor’s awareness towards mutual funds .RESEARCH STUDY RESEARCH OBJECTIVE The aim of this research is to study the investor perception about UTI mutual fund and his awareness level about mutual fund. To find the investor’s overall perception about UTI mutual fund and other mutual funds • To study the influential attributes of the schemes on the basis of investor’s sensitivity • The study will also involve thorough field research of the various similar schemes of other mutual fund and investor’s perception about them.
respondents should be given sufficient freedom to express themselves. or .RESEARCH METHODOLOGY Research Design A research design is a type of blueprint prepared depending on various types of blueprints available for the collection. sex. depending on the availability of new ideas and relationship among variables. Sometimes a group of respondents is brought together and a focus group interview is held. A research design calls for developing the most efficient plan of gathering the needed information. education level. measurement and analysis of data. It does not have a formal and rigid design as the researcher may have to change his focus or direction. When the researcher is interested in knowledge the characteristics of certain groups such as age. The design of the research study is based on the purpose of the study. occupation. Types of Research • • Exploratory Research Descriptive Research Exploratory Research It is done to generate new ideas. Descriptive Research It is undertaken in many circumstances. An exploratory study is generally based on the secondary data that are readily available.
which can be secondary or primary. or determining the relationship between two or more variables. can be collected using variety of tools. descriptive study may be necessary. Collection of primary data through • • • • • Observation Method Interview Method Through Questionnaire Through Schedule. SAMPLING An integral component of a research design is the sampling. Specifically. Sampling produces representative data of the entire population.income. making the projections of a certain things. Data collection Method Data. Depth Interview . interested in knowing the proportion of in a given population who have behaved in a particular manner. it address three questions • • • Whom to survey (the sample unit)? How many to survey (the sample size)? How to select the (the sampling procedure)? The objective of sampling is to get maximum information about the population with minimum efforts.
economics. etc. Newspapers..Secondary Data means data that are already available like: • • • • • Various publications of central. stock exchange etc. bank. Universities. Reports and Publication of various associations connected with business and industry. Various publications of international bodies . Public records and statistics. state and local government. Magazines. Technical and trade journals. historical document and other sources of published information . Books.. • • Report prepared by research scholars.
RESEARCH METHODOLOGY ADOPTED Research Design Descriptive Research Research Instrument Questionnaire Sampling Plan a) Sample Method Probability Sampling (simple random sampling) .
etc. Magazines.b) Sample Size 100 c) Sample Unit general and service class individual Sources of Data a) Primary Data Questionnaire b) Secondary Data Journal. Internet. INTRODUCTION .
The flow chart below describes broadly the working of a mutual fund: Mutual Fund Operation Flow Chart HISTORY OF MUTUAL FUND . The MUTUAL FUND industry started in 1963 with the formation of the Unit Trust Of India . debentures and other securities. The money thus collected is then invested in capital market instruments such as shares. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them. professionally managed basket of securities at a relatively low cost. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified.A mutual fund is a common pool of money in to which investors with common investment objective place their contributions that are to be invested in accordance with the stated investment objective of the scheme. at the initiative by Reserve Bank of India and the Government of India.
.• • • • • • • • • Mutual Fund Started in US First Mutual Funds in India Started in 1963 (UTI MF) First Scheme in India was US 64 PublicSector Banks were allowed to set up Mutual funds in 1987 First public sector bank to set up Mutual was SEBI Private sector was allowed in 1993 (Kothari Pioneer) In 1996 SEBI formed Mutual Funds Regulation In 1999 the dividends from muutual funds were made tax free In 2003 a level playing field was created & all Mutual funds including UTI came under SEBI Regulations.
Value of the portfolio & investors holdings . .alters with change in the market value of investments. reflecting the investment objective.CHARACTERSTICS OF MUTUAL FUND Investors own the Mutual Fund AMC manages the funds for a fee o Fee is expressed as %of assets managed o Fee is within limits specified by SEBI The funds are invested in a portfolio of marketable securities .
g. These schemes do not have a fixed maturity period. In order to provide an exit route to the investors. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end schemes is liquidity.TYPES OF MUTUAL FUND SCHEMES BY STRUCTURE – Schemes can be classified as Closed-ended or Open-ended depending upon whether they give the investor the option to redeem at any time (open-ended) or whether the investor has to wait till maturity of the scheme (closed-ended scheme). The fund is open for subscription only during a specified period at the time of launch of the scheme. 5-7 years. some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. Closed ended Schemes A close-ended fund or scheme has a stipulated maturity period e. Open ended Schemes An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. SEBI Regulations stipulate that at least one of the two exit routes is .
Government securities and money market instruments.term Income Schemes The aim of income funds is to provide regular and steady income to investors. corporate debentures. Such schemes generally invest in fixed income securities such as bonds. However. The aim of growth funds is to provide capital appreciation over the medium to long. Such funds are less risky compared to equity schemes. Equity schemes are hence not suitable for investors seeking regular income or needing to use their investments in the short-term.e. These funds are not affected because of fluctuations in . these schemes are exposed to fluctuations in value especially in the short term. BY INVESTMENT OBJECTIVE – Growth Scheme These schemes seek to invest a majority of their funds in equities and a small portion in money market instruments. either repurchase facility or through listing on stock exchanges. because they invest in equities. Interval Schemes These schemes combine the features of open-ended and closed-ended schemes. They are ideal for investors who have a long-term investment horizon. They may be traded on the stock exchange or may be open for sale or redemption during predetermined intervals at NAV based prices. These mutual funds schemes disclose NAV generally on weekly basis.provided to the investor i. Such schemes have the potential to deliver superior returns over the long term.
NAVs of such funds are likely to be less volatile compared to pure equity funds. These schemes invest in both equities as well as debt. However. Such investors are happy to receive the returns posted by the markets. These funds are also affected because of fluctuations in share prices in the stock markets.equity markets. NAVs of such funds are likely to increase in the short run and vice versa. OTHER SCHEMES – Index schemes The primary purpose of an Index is to serve as a measure of the performance of the market as a whole. As it is not practical to . If the interest rates fall. long-term investors may not bother about these fluctuations. The NAVs of such funds are affected because of change in interest rates in the country. The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. opportunities of capital appreciation are also limited in such funds. However. or a specific sector of the market. Balanced Schemes These schemes are commonly known as Hybrid Schemes. Some investors are interested in investing in the market in general rather than investing in any specific fund. However. An Index also serves as a relevant benchmark to evaluate the performance of mutual funds. They generally invest 40-60% in equity and debt instruments. These are appropriate for investors looking for moderate growth.
Government of India regarding ELSS. 1996 and the notifications issued by the Ministry of Finance (Department of Economic Affairs). subscriptions to the Units not exceeding Rs. Subject to such conditions and limitations. of an amount equal to 20% of the amount subscribed. . 1961.invest in each and every stock in the market in proportion to its size. these investors are comfortable investing in a fund that they believe is a good representative of the entire market. 000 would be eligible to a deduction. Tax Saving schemes The Scheme is subject to Securities & Exchange Board of India (Mutual Funds) Regulations. as prescribed under Section 88 of the Incometax Act.10. from income tax. Index Funds are launched and managed for such investors.
STRUCTURE OF MUTUAL FUND INDISTRY IN INDIA There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund: .
The main responsibility of the Trustee is to safeguard the interest of the unit holders and inter alia ensure that the AMC functions in the interest of investors and in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations. 1908.THE STRUCTURE CONSISTS OF Sponsor - Sponsor is the person who contribute atleast 40% of the networth of the Investment Managed and meet the eligibility criteria prescribed under the Securities and Exchange Board of India (Mutual Funds) Regulations. Trustee - Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals). the provisions of the Trust Deed and the Offer Documents of the respective . The trust deed is registered under the Indian Registration Act. 1996.The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution made by it towards setting up of the Mutual Fund. Trust - The Sponsor constitutes the Mutual Fund as a trust in accordance with the provisions of the Indian Trusts Act. 1882. 1996.
At least 50% of the directors of the AMC are independent directors who are not associated with the Sponsor in any manner. redemption requests and dispatches account statements to the unit holders. . Registrar and Transfer Agent - The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the Mutual Fund. The Registrar processes the application form. Asset Management Company (AMC) - The Trustee as the Investment Manager of the Mutual Fund appoints the AMC. The AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act as an asset management company of the Mutual Fund.Schemes. The Registrar and Transfer agent also handles communications with investors and updates investor records. The AMC must have a net worth of at least 10 crore at all times. At least 2/3rd directors of the Trustee are independent directors who are not associated with the Sponsor in any manner.
depending upon the investment objective of the scheme.ADVANTAGES OF MUTUAL FUND IN INDIA Affordability A mutual fund invests in a portfolio of assets. i. bonds. fixed deposits etc. shares. etc. real estate. An investor can buy in to a portfolio of equities.e. money market instruments. .) and different sectors (auto. which would otherwise be extremely expensive. bonds. Thus it would be affordable for an investor to build a portfolio of investments through a mutual fund rather than investing directly in the stock market. Diversification It means that you must spread your investment across different securities (stocks.
When you buy in to a mutual fund.textile. it offers an opportunity to an investor to invest sums across a variety of schemes. as and when required. However. This variety is beneficial in two ways: first.). Professional Management Qualified investment professionals who seek to maximize returns and minimize risk monitor investor's money. you are handing your money to an investment professional who has experience in making investment decisions. It is the Fund Manager's job to (a) find the best securities for the fund. secondly. given the fund's stated investment objectives. both debt and equity. Tax Benefits Any income distributed after March 31. and (b) keep track of investments and changes in market conditions and adjust the mix of the portfolio. it offers different types of schemes to investors with different needs and risk appetites. 2002 will be subject to tax in the assessment of all Unit holders. information technology etc. as a measure of concession to Unit holders of open-ended . This kind of a diversification may add to the stability of your returns Variety Mutual funds offer a tremendous variety of schemes.
In case of Individuals and Hindu Undivided Families a deduction upto Rs. administration and management of mutual funds and also prescribe disclosure and accounting requirements. These rules relate to the formation. 2003.000 from the Total Income will be admissible in respect of income from investments specified in Section 80L. Regulations Securities Exchange Board of India (“SEBI”). Units of the schemes are not subject to Wealth-Tax and Gift-Tax. will be taxed at a concessional rate of 10. including income from Units of the Mutual Fund. you can redeem all or part of your units any time you wish. Some schemes do have a lock-in period where an investor cannot return the units until the completion of such a lock-in period.5%. which govern mutual funds.equity-oriented funds. income distributions for the year ending March 31. Such a high level of regulation seeks to protect the interest of investors Liquidity In open-ended mutual funds. the mutual funds regulator has clearly defined rules. 9. .
An investor can purchase or sell fund units directly from a fund, through a broker or a financial planner. The investor may opt for a Systematic Investment Plan (“SIP”) or a Systematic Withdrawal Advantage Plan (“SWAP”). In addition to this an investor receives account statements and portfolios of the schemes
Mutual Funds offering multiple schemes allow investors to switch easily between various schemes. This flexibility gives the investor a convenient way to change the mix of his portfolio over time.
Transparency Open-ended mutual funds disclose their Net Asset Value (“NAV”) daily and the entire portfolio monthly. This level of transparency, where the investor himself sees the underlying assets bought with his money, is unmatched by any other financial instrument. Thus the investor is in the know of the quality of the portfolio and can invest further or redeem depending on the kind of the portfolio that has been constructed by the investment manager.
Drawbacks of Mutual Fund
Mutual funds have their drawbacks and may not be for everyone:
No Guarantees: No investment is risk free. If the entire stock market declines in value, the value of mutual fund shares will go down as well, no matter how balanced the portfolio. Investors encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own. However, anyone who invests through a mutual fund runs the risk of losing money.
Fees and commissions: All funds charge administrative fees to cover their dayto-day expenses. Some funds also charge sales commissions or "loads" to compensate brokers, financial consultants, or financial planners. Even if you don't use a broker or other financial adviser, you will pay a sales commission if you buy shares in a Load Fund.
Taxes: During a typical year, most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios. If your fund makes a
profit on its sales, you will pay taxes on the income you receive, even if you reinvest the money you made.
Management risk: When you invest in a mutual fund, you depend on the fund's manager to make the right decisions regarding the fund's portfolio. If the manager does not perform as well as you had hoped, you might not make as much money on your investment as you expected. Of course, if you invest in Index Funds, you forego management risk, because these funds do not employ managers.
ROLE OF SEBI IN MUTUAL FUNDS INDUSTRY
In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. The objectives of SEBI are – to protect the interest of investors in securities and to promote th developmentof and to regities markets ulate the secar.
including fee mutual funds may charge investors.1996(“SEBI Regulations”) Registration All mutual funds are required to be registered with SEBI. .SEBI REGULATIONS Mutual Funds are highly regulated financial entities that must comply with a large number of regulates mutual funds as per the Security and Exchange Board of India (Mutual Funds) Regulations. Advertising Code SEBI Regulations lays down strict norms for any advertisements by a mutual fund with a view to ensure that there are no inaccurate and misleading statements. SEBI Regulations lay down the terms and conditions of registration. custodian and registers & share transfer agents. Constitution and Management SEBI Regulations highlight the manner in which the mutual fund ought to be constituted including the contents of the trust deed. It also mentions the eligibility criteria for the appointment of assets management company.
computation of NAV and pricing of units. . SEBI Regulations also lay down guidelines and method for valuation of investments. And the investment objective and policies in respect of any scheme should be clearly mentioned in the offer document pertaining to such scheme in accordance with the regulations.Investment Objectives and Valuation Policies SEBI Regulations restrict the type of investments by any mutual funds.
6. fact sheets. 7. distribution and advertising practices. and urge investors to go through offer documents/key information memorandum before deciding to make investments. and recommend schemes appropriate for the client's situation and needs. Disclose all material information related to the schemes/plans while canvassing for business. performance reports. Be fully conversant with the key provisions of the offer document as well as the operational requirements of various schemes.SEBI'S CODE OF CONDUCT FOR INTERMEDIARIES OF MUTUAL FUNDS 1. unless the offer document is explicit in this regard. Highlight risk factors of each scheme. 5. 4. avoid misrepresentation and exaggeration. Abstain from indicating or assuring returns in any type of scheme. 2. and ensure that critical operations such as forwarding forms and cheques to AMCs/registrars and 8. Take necessary steps to ensure that the clients' interest is protected. Adhere to SEBI Mutual Fund Regulations and guidelines related to selling. . Dispatch of statement of account and redemption cheques to investors are done within the time frame prescribed in the offer document and SEBI Mutual Fund Regulations. portfolio disclosures and brochures. 3. Maintain necessary infrastructure to support the AMCs in maintaining high service standards to investors. Provide full and latest information of schemes to investors in the form of offer documents.
When marketing various schemes. and other material aspects) are sent to investors reliably and on time. Intermediaries will not rebate commission back to investors and avoid attracting clients through temptation of rebate/gifts etc. wrong claiming of dividend/redemption cheques. (b) Encouraging over transacting and churning of mutual fund investments to earn higher commissions. etc. Avoid making negative statements about any AMC or scheme and ensure that comparisons if any. Avoid colluding with clients in faulty business practices such as bouncing cheques. 11. exit/entry load. even if they mean higher transaction costs and tax for investors. and that extra commission or incentive earned should never form the basis for recommending a scheme to the client. 15. 10. Avoid commission driven malpractices such as: (a) recommending inappropriate products solely because the intermediary is getting higher commissions there from. are made with similar and comparable products. Ensure that all investor related statutory communications (such as changes in fundamental attributes. 13.9. exit options. A focus on financial planning and advisory services ensures correct selling. . remember that a client's interest and suitability to their financial needs is paramount. 12. Maintain confidentiality of all investor deals and transactions. 14. 16. and also reduces the trend towards investors asking for pass back of commission.
UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs of every class of citizenry. for undertaking portfolio management services and also acts as the manager and marketer to offshore funds through its 100 % subsidiary.Kurla Complex. 11 satellite offices have also been opened in select .400 051 will provide professionally managed back office support for all business services of UTI Mutual Fund (excluding fund management) in accordance with the provisions of the Investment Management Agreement. the Trust Deed. UTI Mutual Fund has come into existence with effect from 1st February 2003. 2003) who has been appointed by the UTI Trustee Company Private Limited for managing the schemes of UTI Mutual Fund and the schemes transferred / migrated from UTI Asset Management Company has its registered office at: UTI Tower. registered in Guernsey. State-of-the-art systems and communications are in place to ensure a seamless flow across the various activities undertaken by UTI AMC. Gn Block.: Jan 14. Bandra (East). Bandra . Channel Islands.UTI MUTUAL FUND UTI Mutual Fund is managed by UTI Asset Management Company Private Limited (Est.20000 Crore. UTI International Limited. UTI AMC is a registered portfolio manager under the SEBI (Portfolio Managers) Regulations. UTI Asset Management Company presently manages a corpus of over Rs. the SEBI (Mutual Funds) Regulations and the objectives of the schemes. 1993 on February 3 2004. Mumbai . With a view to reach to common investors at district level. It has a nationwide network consisting 56 UTI Financial Centres (UFCs) and representative offices in Dubai and London.
UTI Tower. who has been highly empowered to manage funds with greater efficiency and accountability in the sole interest of unit holders.towns and districts. Dr. Shri S P Oswal. 1956 will be the Trustee of transferred/migrated schemes are the first and sole trustee of the Mutual Fund under the Trust Deed dated December 9. Bandra (East).Kurla Complex. Shri Babasaheb Neelkanth Kalyani Asset Management Company . Bandra . Gn Block. It has a well-qualified. Mumbai 400 051 Board of Directors Shri Janki Ballabh. P G Apte. 2002 executed between the Sponsors and the Trustee Company (the Trustee). professional fund management team. Trustee UTI Trustee Company Private Limiteda company incorporated under The Companies Act.
UTI Asset Management Company Limited is a company incorporated under The Companies Act. Bandra (East). 2002 executed between UTI Trustee Company Limited and UTI Asset Management Company Limited. The AMC apart from managing the schemes of UTI Mutual Fund will also manage the schemes transferred/migrated from the erstwhile Unit Trust of India. for undertaking portfolio management services. Mumbai . Registered office: UTI Tower. Gn Block.Kurla Complex. UTI AMC has been registered as a portfolio manager under the SEBI (Portfolio Managers) Regulations. UTI Asset Management Company Limited has been appointed as the Asset Management Company of the UTI Mutual Fund by the Trustee in terms of Investment Management Agreement dated December 9. State Bank of India. the SEBI (Mutual Funds) Regulations and the objectives of the schemes. 1993 on February 3 2004. 1956. .MF/BC/PKN/03 dated January 14. Bank of Baroda and Punjab National Bank. in accordance with the provisions of the Investment Management Agreement. viz. Bandra . the Trust Deed. The AMC was approved by SEBI to act as the asset management company for UTI Mutual Fund vide their letter no. 2003. LIC of India. UTI AMC has entered into a service agreement with the Administrator of the Specified Undertaking of The Unit Trust of India to provide back office support for business processes but specifically excluding the making of decisions for the sale and purchase for assets of the Specified Undertaking.400 051. The paid up capital of the UTIAMC has been subscribed equally by the four sponsors.
NAME OF DIRECTORS OF UTI ASSET MANAGEMENT CO. (P)Ltd Shri UK Sinha Chairman& managing Director Shri SK Bhargava Non executive Chairman Dr. the largest public financial investment institution and life insurer in India are the sponsors of UTI Mutual Fund. Anita Ramachandaran Director & CEO Shri Prithvi Haldea Managing Director Shri PK Khanna Charted Accountant Sponsors Three leading public sector banks – Bank of Baroda. Punjab National Bank and State Bank ofIndia and Life Insurance Corporation of India (LIC). Bank of Baroda:- . KC Mishra Director Ms.
03. It has a track record of uninterrupted profits since inception in 1908. 463147. Life Insurance Corporation of India Life Insurance Corporation of India (LIC) is amongst the largest insurance companies in the world.2006) covering almost every State and Union Territory in the Country. During the period since inception. Punjab National Bank and State Bank of India and Life Insurance Corporation of India (LIC). Thus. it has always maintained its practice of sound value based banking to emerge as one of the premier public sector Banks of the country today. The financial strength of the Bank and its long tradition of efficient customer service are drawn substantially from the extensive reach of its 2704 strong branch network (as of 31. . Three leading public sector banks – Bank of Baroda. with 2048 branches and having a Fund size of Rs.03.62 crore.2006. the largest public financial investment institution and life insurer in India are the sponsors of UTI Mutual Fund.Bank of Baroda is a commercial bank performing activities in terms of Banking Companies (Acquisition and Transfer of Undertakings Act 1970) under which the Undertaking of the Bank was taken over by the Central Government.743 as at 31. the total branch network is 2. The Bank is also one of the few Indian Banks with a formidable presence overseas with 39 branches.
In addition to this.000/. the needs of the development of the economy and to promote the welfare of the people. resources coverage and organisation.An act to provide for the acquisition and transfer of the undertaking of certain banking companies. SCHEMES OF UTI MUTUAL FUND A. in order to further to control the heights of the economy. having regard to their size.Punjab National Bank Punjab National Bank is a commercial bank performing activities in terms of Banking Companies (Acquisition and Transfer of Undertakings Act 1970) under which the Undertaking of the Bank was taken over by the Central Government. LIQUID FUND CATEGORY .10. The main object of the bank under the said Act is as below:. SBI also has 21 subsidiaries. The sponsors are not responsible nor liable for any loss resulting from the operation of the scheme beyond the contribution of an amount of Rs.made by them towards setting up of the Mutual Fund. to meet progressively and serve better. State Bank of India: The State Bank of India is the largest public sector bank in India with 9177 branches in India and 70 offices in 30 countries worldwide. in conformity with the policy of the State towards securing the principles laid down in clause (b) and (c) of Article 39 of the Constitution of India and for matter connected therewith or incidental therein.
INCOME FUND CATEGORY • • • • • • • • • • • UTI G-sec Fund-Investment Plan UTI G-sec Fund-Short term Plan UTI Gilt Advantage Plan-LTP UTI Gilt Advantage Plan-STP UTI Bond Fund UTI Bond Advantage Fund-LTP UTI Bond Advantage Fund-STP UTI Floating Rate Fund UTI monthly Income Scheme UTI MIS Advantage Plan UTI Children’s Career Plan C. BALANCED FUND CATEGORY • PURE BALANCED FUND .• • • • UTI Money Market Fund UTI Liquid Short-Term Plan UTI Liquid Fund-Cash Plan UTI Liquid Advantage Fund B.
UTI Balanced Fund UTI US 2002 • GEMENT FOCUDSED FUNDS UTI Mahila Unit Scheme UTI Children’s Career Plan(Balanced) UTI Charitable & Religious Trust & Registered Society • RETIREMENT BENEFIT/UNIT LINK PLAN UTI Unit Link Insurance Plan UTI Retirement Benefit Pension Fund D. INDEX FUNDS CATEGORY • PURE INDEX FUND UTI Master Index Fund UTI Nifty Index Fund UTI –Index Advantage Fund-Nifty Plan . ASSET ALLOCATION FUNDS CATEGORY • • UTI Variable Investment Scheme UTI Dynamic Equity Fund E.
EQUITY FUND CATEGORY • TAX PLANNING FUND UTI Equity Tax saving Plan UTI MEPUS(not open for sale) • DIVERSIFIED FUND UTI Mastershare Unit Scheme UTI Master Plus Unit Scheme UTI Mastergain Unit scheme UTI Grandmaster Unit Scheme UTI PEF Unit Scheme UTI Growth and Value Fund • SECTOR FUND .• • ENHANCED INDEX FUND UTI Index Select Fund EXCHANGE TRATED FUND UTI Sunder F.
UTI Petro Fund UTI Pharma & Healthcare Fund UTI Software Fund UTI Auto Sector Fund UTI banking Sector Fund • SPECIALTY/THEME BASED FUND UTI Mastergrowth UTI Master value fund UTI MNC Fund UTI Brand Value Fund UTI Service Fund UTI Large Cap Fund UTI Mid Cap Fund UTI Basic Industries Fund UTI PSU Fund UTI India Advantage Equity Fund .
(ACAM) is an affiliate of Alliance Capital Management L. (Alliance Capital). It has been recognised nationally with coveted awards. .P. The company is one of India's leading. It places a lot of emphasis on quality of management and risk control. Birla Sun Life Mutual Fund Birla Sun Life Mutual Fund follows a conservative long-term approach to investment. Alliance Capital and its subsidiaries employ over 4. private mutual funds with a large customer base. 2. USA.000 persons worldwide. This is done through extensive analysis that includes factory visits and field research. Ltd. which is based on identifying companies that have good credit-worthiness and are fundamentally strong.PLAYERS IN MUTUAL FUND INDUSTRY 1. Alliance operates out of eight offices in the US and through its subsidiaries and affiliate offices in over 19 countries. It has one of the largest team of research analysts in the industry. a leading global investment adviser headquartered New York. Alliance Capital Alliance Capital Asset Management (India) Pvt.
The company was set up in 1996. which offers mutual funds to retail and institutional investors. India’s first AAAf-rated mutual fund scheme. The group has US$ 409. Franklin Templeton has set-up offices in 33 locations nationwide and manages Rs. CAMC manages over Rs. Franklin Templeton Franklin Templeton Investments is one of the largest financial services groups in the world based at San Mateo. CAMC is known for its prudent philosophy in fund-management.29 crores in assets and an investor base of 10. today CAMC is a subsidiary of CIFCL.5 lacs as of May 31.3. In 2001. as a joint venture with Cazenove Investment Management of the UK.2 billion in assets under management globally (as of April 30. 2005). Based in Mumbai. . the Murugappa Group acquired Cazenove’s stake in the company. California USA. has not only retained its rating since inception. but also has a consistent track record of dividend payments. Chola Triple Ace. Cholamandalam Mutual Fund Cholamandalam AMC Limited (CAMC) is an asset management company.1000 crores of assets 4. 2005. 079.17.
7353. Currently.99. Kotak Mahindra Mutual Fund Kotak Mahindra Mutual Fund (KMMF) is managed by Kotak Mahindra Asset Management Company Ltd. five debt and two hybrid schemes to its investors 6.82 cr. 1600 crores of Assets Under Management.. KMMF has to its credit the launching of innovative schemes and plans like Kotak Gilt and Free Life Insurance with Kotak Bond Deposit Plan. Kotak Mahindra Mutual Fund launched its Schemes in December 1998 and today manages assets over and above Rs. contributed by more than 1. a wholly owned subsidiary of Kotak Mahindra Bank Ltd.5.818 investors in various schemes. This is combined with a range of innovative options to deliver healthy returns combined with a high degree of security. the fund offers four equity. . With presence in eight cities across the country. and over Rs. ING Mutual Fund ING Vysya Mutual Fund brings with it the vast international experience and professional expertise of the ING Group. ING Vysya Mutual Fund aims to provide investors with the most practical and secure investment opportunities to invest their valuable savings.
Prudential ICICI Mutual Fund Prudential ICICI Asset Management Company. 80.7. The AMC has already launched a range of products to suit different risk and maturity profiles. Both Prudential and ICICI Bank Ltd have a strategic long-term commitment to the rapidly expanding financial services sector in India . 2004. The joint venture was formed with the key objective of providing the Indian investor mutual fund products to suit a variety of investment needs. (55%:45%) a joint venture between Prudential Plc. Prudential ICICI Asset Management Company Limited has a networth of about Rs. India's premier financial institution.14 crore (1 crore = 10 million) as of March 31. UK's leading insurance company and ICICI Bank Ltd.
Set up on July 1. Today.039 branches in India (excluding 4599 branches of banking subsidiaries) and 54 offices in 28 countries spread over all time zones. the State Bank of India. a company registered under the Companies Act. 1955. the State Bank of India is the largest banking operation in the country.8. the sponsor. 1956 was appointed to act as the Investment Manager of Reliance Mutual Fund. Through years of commitment to service and national development. The entire paid-up capital (100%) of Reliance Capital Asset Management Limited is held by Reliance Capital Limited. Reliance Capital Asset Management Limited is a wholly owned subsidiary of Reliance Capital Limited. . it has 9. Reliance Capital Mutual Fund Reliance Capital Asset Management Limited (RCAM). SBI Mutual Fund SBI Mutual Fund draws strength from India's premier and largest bank. 9. SBI has grown into an instrument of social change.
12. 2000. DSP Merrill Lynch is one of India's leading financial services company. 169. DSP MERRILL LYNCH MUTUAL FUND DSP Merrill Lynch Fund Managers is the investment manager to DSP Merrill Lynch Mutual Fund and is a subsidiary of DSP Merrill Lynch Ltd.4 % of India's GDP). 1999. it is also India's largest employer in the private sector. The Tata Group is one of India's best-known conglomerate in the private sector with a turnover of around US $ 11. 11. Parekh Marg.one of India's largest and most respected industrial group. Long known for its adherence to business ethics. HDFC HDFC Asset Management Company Ltd(AMC) was incorporated under the Companies Act.400 020.443 employees across 93 companies. 3rd Floor. on December 10. Mumbai . Churchgate. With 210. H. is a part of the Tata group .T. 1956.2 billion (equivalent to 2. and was approved to act as an Asset Management Company for the Mutual Fund by SEBI on June 30. The registered office of the AMC is situated at Ramon House. .10. it is India's most respected private business group. Backbay Reclamation. Tata Mutual Fund Tata Asset Management Ltd.
HSBC 18. FIDELITY INVESTMENT 14. ESCORTS 16. STANDARD CHARTERED 15. PRINCIPAL MUTUAL FUND 17.13. Sundaram Mutual Fund Mutual Funds – FAQs .
‘Front-end’ load. Also called. This is also called Bid Price. . Also called Offer Price. It may include a sales load.Net Asset Value (NAV) Net Asset Value is the market value of the assets of the scheme minus its liabilities. Repurchase Price Is the price at which a close-ended scheme repurchases its units and it may include a back-end load. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date Sale Price Is the price you pay when you invest in a scheme. Such prices are NAV related. Sales Load Is a charge collected by a scheme when it sells the units. Redemption Price Is the price at which open-ended schemes repurchase their units and close-ended schemes redeem their units on maturity.
Schemes that do not charge a load are called ‘No Load’ schemes. . Repurchase or ‘Back-end’ Load Is a charge collected by a scheme when it buys back the units from the unitholders.
DATA ANALYSIS & INTERPRETATION .
stored.The data collected from primary sources through collection of the responses of the questionnaire was assembled. The analysis of the data is as under here- 1. Do you know about mutual fund Yes No 64 36 36 64 yes no INTERPRETATION: . selected and analyzed.
MAGAZINES FRIENDS & RELATIVES FINANCIAL ADVISOR OTHERS RESPONDENT 30 23 20 10 7 10 25 20 15 23 20 10 10 10 7 5 0 0 0 0 0 0 . 2. mostly majority is aware of the mutual fund.e..From the above diagram it is quite clear that awareness towards mutual funds is 64% i.V. AWARENESS TOWARDS MF THROUGH NO OF NATURE OF AWARENESS NEWSPAPER T.
INVESTMENT IN MUTUAL FUNDS TYPES OF AMC UTI KOTAK HDFC PRUDENTIAL ICICI FRANKLIN TEMPLTON OTHERS NO OF RESPONDENTS 40 12 10 25 8 5 8 5 40 25 10 12 UTI PRUDENTIAL ICICI KOTAK FRANKLIN TEMPLTON HDFC OTHERS INTERPRETATION: From the above table it is quite clear that mostly respondents prefer to invest in UTI (40%) followed by Prudential ICICI (25%). . KOTAK (12%). 3.INTERPRETATION: From the above table it can be seen that newspaper (30%) has an upper edge in awareness of the mutual fund followed by TV (23%) and magazines (20%).
5.Do you have investment in mutual fund YES NO 24 76 24 76 YES NO INTERPRETATION: From the above table it is quite clear that mostly respondents do not have investment in mutual fund.4.REASON TO PREFER MUTUAL FUND .
transprancy. 6.Attributes/Rank TAX SAVING HIGH RETURN 1 270 155 2 170 260 40 20 10 3 40 60 185 175 40 4 20 15 140 185 140 5 0 10 85 105 300 LIQUIDITY 50 TRANSPRANCY 15 FLEXIBILITY 10 350 300 250 200 150 100 50 0 1 2 3 4 5 TAX SAVING HIGH RETURN LIQUIDITY TRANSPRANCY FLEXIBILITY INTERPRETATION: From the above table it is quite clear that mostly respondents invested money due to tax benefit followed by high return. liquidity.What the most preferred period of investment . and flexibility.
Do you have any future plan for investment . 7.PERIODS BELOW 1 YEAR 1-3 YEAR 3-5 YEAR ABOVE 5 YEAR NO OF RESPONDENTS 50 260 120 70 60 50 40 30 20 10 0 BELOW 1 YEAR 1-3 YEAR 3-5 YEAR ABOVE 5 YEAR Series1 INTERPRETATION: From the above table it is quite clear that mostly respondents invested their money for short-term period (1-3 year) followed by 3-5 year.
Have you ever invested in UTI Mutual Fund? YES NO 33 67 .As the above graph shows that 64 % respondents are interested to invest in future. 8.YES NO 64 36 36 64 YES NO INTERPRETATION: From the above table it is quite clear that mostly respondents are interested to invest in mutual fund in future .
9.IF YES. Of RESPONDENTS 8 . IN WHICH SCHEME? NATURE OF SCHEME EQUITY No.33% 67% Y E S NO INTERPRETATION: From the above table it is quite clear that only 33% respondents have investment in UTI mutual fund.
.24%).48% respondents have investment in UTI Balanced fund followed by debt fund (27.HOW DO YOU RATE UTI MUTUAL FUND AGIANST OTHER MUTUAL FUND? .27%) and equity fund (24. 10. Of RESPONDENTS 18 16 14 12 10 8 6 4 2 0 16 9 8 EQUITY BALANCED No. Of RESPONDENTS DEBT INTERPRETATION: From the above table it is quite clear that 48.BALANCED DEBT 16 9 No.
.NO OF RATINGS RESPONDENTS EXCELLENT GOOD AVERAGE POOR 8 63 22 7 INTERPRETATIONS: It can be concluded by saying that the 63% respondents rate UTI mutual fund as good against other mutual fund whereas 22% respondents rate UTI mutual fund as average against other mutual funds.
11. .OPINION REGARDING MARKETING. SALES AND AFTER SALES SERVICES OF UTI MUTUAL FUND? NO OF RATINGS EXCELLENT GOOD AVERAGE POOR RESPONDENTS 2 10 14 7 14 12 10 8 6 4 2 0 EXCELLENT GOOD AVERAGE POOR Series1 INTERPRETATIONS: It can be concluded by saying that the maximum respondents rate UTI mutual fund as average towards sales and service.
All of them have different schemes. as the market was not so good. Some were managers. During this period we collected information on the following funds also. Among the total respondents covered maximum respondent had already investment in mutual funds. • The most popular and well known mutual funds is UTI MUTUAL . Following are the points which cover the whole conclusion of the survey regarding the project• Most of the respondents were aware about mutual fund but they do not know very much about mutual fund. Franklin Templeton. retired persons etc. service class. So one option was that the unit price of the Mutual Fund had come down and it was better time for people to invest at a low value and earn a higher return in a long run. Many things that were not known to us came into light and the last but not the least was experiencing that current market and the condition prevailing.CONCLUSION It was very difficult to pursue people to invest their capital. All have a different mind and their own views while they think of investing in mutual fund. businessman. we had to meet different type of people. • • Most of the respondents were aware through newspapers and magazines. as the mindset of people is not to invest in any type risk. doctors. For the purpose. Prudential ICICI Mutual Fund. such as Birla Mutual Fund. which is attached to their capital.
. liquidity and flexibility. are now switching to other saving investments. KOTAK MAHINDRA. • The investors. are not very much satisfied with services of UTI mutual funds and now they are switching to private mutual funds for better services. • The respondent who have invested UTI mutual funds. who had been lost their money in mutual funds. • Medium class individuals want moderate returns as well as security on their money so they prefer in balanced funds. maximum respondents prefer mutual funds due to tax benefits followed by high returns transparency. • Among the total respondents covered. • High net worth individuals wants high returns on their money so they want to invest in equity-oriented funds.FUND and followed by PRUDENTIAL ICICI. HDFC MUTUAL FUNDS and FRANKLIN TEMPLENTON.
As the mutual fund industry is growing and facing tough competition from foreign brands. . So UTI mutual funds should also do aggressive ad campaign with the celebrity endorsement and innovative and creative logo should be there which matches the product and signifies the strength of the type.RECOMMENDATIONS & FINDINGS • According to agents. UTI mutual funds should focus on product awareness and product preference advertising. but they are actually not aware about mutual funds because of the lack of awareness of mutual funds. so the company should conduct such a awareness programs that the people should come to know about the schemes of UTI mutual funds. • Advertising of the schemes in newspaper should be done aggressively so that investors get to know about the schemes performing well • The fund should emphasize its unique and positive features to the brokers investors and corporate • The organization should focus on balanced scheme as they are the most preferred scheme. private mutual fund’s advertisement and logo concept plays major role in awareness about the product. • There are some investors who have invested in UTI mutual funds. • • An agent in continues should be increased to boost sales.
ANNEXURES The following important annexure relevant to this study are enclosed with the – • • Questionnaire Graph of Indian mutual fund industry .
E-MAIL : : : : : 1. NO.Awareness in marketing of Mutual Funds (With reference to UTI Mutual Funds) QUESTIONNAIRE NAME OCCUPATION : : COMPANY NAME : DESIGNATION ADDRESS TEL. NO. MOB. If Yes. than from which source News Paper T.V.Do you know about Mutual Funds? Yes No 2. Magazines Friends and Relatives Financial Advisor Others (please specify) .
Flexibility 6. I. 1-3 Year III. company & fund name. The name. Do you have any investment in mutual funds Yes No If yes. 3-5 Year . III. I. which comes to your mind when it comes to mutual funds 4. II. High return III. Please tell why you prefer mutual funds (please mention in the order of preference) I. Below 1 Year II. 5.3. Liquidity IV.What is the most preferred period of investment in the mutual fund. Tax Benefit II. Transparency V.
Excellent Good Average Poor . If yes. Do you have any future plan for investing in mutual funds? Yes No 8. sales and after sales services of UTI mutual funds. What is your opinion regarding marketing. in which fund Equity Balanced Debt 10. Above 5 year 7.IV. Have you ever invested in UTI mutual funds? Yes No 9. How do you rate UTI mutual fund against other mutual funds Excellent Good Average Poor 11.
Give your suggestions regarding UTI Mutual funds as a Port Folio Manager Signature UTI Mutual Funds 41 Navyug Market. Tel. 2790966/0366 . Ghaziabad.12.
utimf.L.RAMPAL & S.BIBLIOGRAPHY BOOKS: MARKETING RESEARCH PROJECT REPORT WRITING UTI BULLETIN PLUS INTERNET: www.R.mutualfundsindia.com C.com www.GUPTA MARCH -APRIL .com www.com www.K.google.KOTHARI M.amfiindia.