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AWARENESS IN MARKETING OF

MUTUAL FUND
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) Expectations of peoples towards Mutual Funds.


ii) To Study the other factors that are related with while investing in

Mutual Funds schemes.

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; how they make the choice; or

what are their sources of information and influence processes etc. In this process and

organization can identify new opportunities in the market; evaluate and monitor

marketing actions; and in general, evolve better marketing program to serve the interest

of consumers. Thus market research acts a link between the consumer and the marketer.
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”.

Marketing research is the function which links the consumer, customer, and public to the

marketer through the information-information used to identify and define marketing

opportunities and problems; generate; refine and evaluate marketing actions; monitor

marketing performance; and improve understanding of marketing as a process.

STAGES IN THE MARKET RESEARCH PROCESS

In planning and designing a specific research project, 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. The steps of marketing research process are-


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


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.

Objective

• To study the investor’s awareness towards mutual funds .

• 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.


RESEARCH METHODOLOGY

Research Design

A research design is a type of blueprint prepared depending on various types of blueprints

available for the collection, measurement and analysis of data. A research design calls for

developing the most efficient plan of gathering the needed information. The design of the

research study is based on the purpose of the study.

Types of Research

• Exploratory Research

• Descriptive Research

Exploratory Research

It is done to generate new ideas; respondents should be given sufficient freedom to

express themselves. Sometimes a group of respondents is brought together and a focus

group interview is held.

An exploratory study is generally based on the secondary data that are readily available.

It does not have a formal and rigid design as the researcher may have to change his focus

or direction, depending on the availability of new ideas and relationship among variables.

Descriptive Research

It is undertaken in many circumstances. When the researcher is interested in knowledge

the characteristics of certain groups such as age; sex; education level; occupation; or
income; interested in knowing the proportion of in a given population who have behaved

in a particular manner; making the projections of a certain things; or determining the

relationship between two or more variables, descriptive study may be necessary.

SAMPLING

An integral component of a research design is the sampling. Specifically, 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. Sampling produces representative data of the entire population.

Data collection Method

Data, which can be secondary or primary, can be collected using variety of tools.

Collection of primary data through

• Observation Method

• Interview Method

• Through Questionnaire

• Through Schedule.

• Depth Interview
Secondary Data means data that are already available like:

• Various publications of central, state and local government;

• Various publications of international bodies ;

• Technical and trade journals;

• Books, Magazines, Newspapers;

• Reports and Publication of various associations connected with business and

industry, bank, stock exchange etc.;

• Report prepared by research scholars, Universities, economics, etc.;

• Public records and statistics, historical document and other sources of published

information
RESEARCH METHODOLOGY ADOPTED

Research Design Descriptive Research

Research Instrument Questionnaire

Sampling Plan

a) Sample Method Probability Sampling (simple random sampling)


b) Sample Size 100

c) Sample Unit general and service class individual

Sources of Data

a) Primary Data Questionnaire

b) Secondary Data Journal, Magazines, Internet, etc.

INTRODUCTION
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. The money thus

collected is then invested in capital market instruments such as shares,

debentures and other securities. 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. Thus a Mutual Fund is the most suitable

investment for the common man as it offers an opportunity to invest in a

diversified, professionally managed basket of securities at a relatively low cost.

The MUTUAL FUND industry started in 1963 with the formation of the Unit Trust Of

India , at the initiative by Reserve Bank of India and the Government of India.

The flow chart below describes broadly the working of a mutual fund:

Mutual Fund Operation Flow Chart

HISTORY OF MUTUAL FUND


• 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.


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 , reflecting the

investment objective.

 Value of the portfolio & investors holdings ,alters with change in the market

value of investments.
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).

Open ended Schemes

An open-ended fund or scheme is one that is available for subscription and repurchase on

a continuous basis. These schemes do not have a fixed maturity period. 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.

Closed ended Schemes

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is

open for subscription only during a specified period at the time of launch of the scheme.

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. In order to provide an exit route to the investors, some close-ended funds give an

option of selling back the units to the mutual fund through periodic repurchase at NAV

related prices. SEBI Regulations stipulate that at least one of the two exit routes is
provided to the investor i.e. either repurchase facility or through listing on stock

exchanges. These mutual funds schemes disclose NAV generally on weekly basis.

Interval Schemes

These schemes combine the features of open-ended and closed-ended schemes. They may

be traded on the stock exchange or may be open for sale or redemption during pre-

determined intervals at NAV based prices.

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. Such schemes have the potential to deliver superior returns

over the long term. However, because they invest in equities, these schemes are exposed

to fluctuations in value especially in the short term. Equity schemes are hence not

suitable for investors seeking regular income or needing to use their investments in the

short-term. They are ideal for investors who have a long-term investment horizon. The

aim of growth funds is to provide capital appreciation over the medium to long- term

Income Schemes

The aim of income funds is to provide regular and steady income to investors. Such

schemes generally invest in fixed income securities such as bonds, corporate debentures,

Government securities and money market instruments. Such funds are less risky

compared to equity schemes. These funds are not affected because of fluctuations in
equity markets. However, opportunities of capital appreciation are also limited in such

funds. The NAVs of such funds are affected because of change in interest rates in the

country. If the interest rates fall, NAVs of such funds are likely to increase in the short

run and vice versa. However, long-term investors may not bother about these

fluctuations.

Balanced Schemes

These schemes are commonly known as Hybrid Schemes. These schemes invest in both

equities as well as debt. 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. These are appropriate for investors looking

for moderate growth. They generally invest 40-60% in equity and debt instruments.

These funds are also affected because of fluctuations in share prices in the stock markets.

However, NAVs of such funds are likely to be less volatile compared to pure equity

funds.

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, or a specific sector of the market. An Index also serves as a relevant

benchmark to evaluate the performance of mutual funds. Some investors are interested in

investing in the market in general rather than investing in any specific fund. Such

investors are happy to receive the returns posted by the markets. As it is not practical to
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. Index Funds are launched and managed for such investors.

Tax Saving schemes

The Scheme is subject to Securities & Exchange Board of India (Mutual Funds)

Regulations, 1996 and the notifications issued by the Ministry of Finance (Department of

Economic Affairs), Government of India regarding ELSS.

Subject to such conditions and limitations, as prescribed under Section 88 of the Income-

tax Act, 1961, subscriptions to the Units not exceeding Rs.10, 000 would be eligible to a

deduction, from income tax, of an amount equal to 20% of the amount subscribed.
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 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,

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. The trust deed is registered under the Indian Registration

Act, 1908.

Trustee -

Trustee is usually a company (corporate body) or a Board of Trustees (body of

individuals). 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,

1996, the provisions of the Trust Deed and the Offer Documents of the respective
Schemes. At least 2/3rd directors of the Trustee are independent directors who are not

associated with the Sponsor in any manner.

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. At least 50% of the directors of

the AMC are independent directors who are not associated with the Sponsor in any

manner. The AMC must have a net worth of at least 10 crore at all times.

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, redemption requests

and dispatches account statements to the unit holders. The Registrar and Transfer agent

also handles communications with investors and updates investor records.


ADVANTAGES OF MUTUAL FUND IN INDIA

Affordability

A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the

investment objective of the scheme. An investor can buy in to a portfolio of equities,

which would otherwise be extremely expensive. 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, bonds,

money market instruments, real estate, fixed deposits etc.) and different sectors (auto,
textile, information technology etc.). This kind of a diversification may add to the

stability of your returns

Variety

Mutual funds offer a tremendous variety of schemes. This variety is beneficial in two

ways: first, it offers different types of schemes to investors with different needs and risk

appetites; secondly, it offers an opportunity to an investor to invest sums across a variety

of schemes, both debt and equity.

Professional Management

Qualified investment professionals who seek to maximize returns and minimize risk

monitor investor's money. When you buy in to a mutual fund, 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, given the fund's

stated investment objectives; and (b) keep track of investments and changes in market

conditions and adjust the mix of the portfolio, as and when required.

Tax Benefits

Any income distributed after March 31, 2002 will be subject to tax in the assessment of

all Unit holders. However, as a measure of concession to Unit holders of open-ended


equity-oriented funds, income distributions for the year ending March 31, 2003, will be

taxed at a concessional rate of 10.5%.

In case of Individuals and Hindu Undivided Families a deduction upto Rs. 9,000 from the

Total Income will be admissible in respect of income from investments specified in

Section 80L, including income from Units of the Mutual Fund. Units of the schemes are

not subject to Wealth-Tax and Gift-Tax.

Regulations

Securities Exchange Board of India (“SEBI”), the mutual funds regulator has clearly

defined rules, which govern mutual funds. These rules relate to the formation,

administration and management of mutual funds and also prescribe disclosure and

accounting requirements. Such a high level of regulation seeks to protect the interest of

investors

Liquidity

In open-ended mutual funds, 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.


Convenience

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

Flexibility

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 day-

to-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.


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,1996(“SEBI Regulations”)

Registration

All mutual funds are required to be registered with SEBI. SEBI Regulations lay down the

terms and conditions of registration, including fee mutual funds may charge investors.

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, custodian and registers & share transfer

agents.

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.


Investment Objectives and Valuation Policies

SEBI Regulations restrict the type of investments by any mutual funds. 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. SEBI

Regulations also lay down guidelines and method for valuation of investments,

computation of NAV and pricing of units.


SEBI'S CODE OF CONDUCT FOR INTERMEDIARIES OF

MUTUAL FUNDS

1. Take necessary steps to ensure that the clients' interest is protected.

2. Adhere to SEBI Mutual Fund Regulations and guidelines related to selling,

distribution and advertising practices. Be fully conversant with the key provisions

of the offer document as well as the operational requirements of various schemes.

3. Provide full and latest information of schemes to investors in the form of offer

documents, performance reports, fact sheets, portfolio disclosures and brochures,

and recommend schemes appropriate for the client's situation and needs.

4. Highlight risk factors of each scheme, avoid misrepresentation and exaggeration,

and urge investors to go through offer documents/key information memorandum

before deciding to make investments.

5. Disclose all material information related to the schemes/plans while canvassing

for business.

6. Abstain from indicating or assuring returns in any type of scheme, unless the offer

document is explicit in this regard.

7. Maintain necessary infrastructure to support the AMCs in maintaining high

service standards to investors, and ensure that critical operations such as

forwarding forms and cheques to AMCs/registrars and

8. 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.
9. Avoid colluding with clients in faulty business practices such as bouncing

cheques, wrong claiming of dividend/redemption cheques, etc.

10. Avoid commission driven malpractices such as:

(a) recommending inappropriate products solely because the intermediary is

getting higher commissions there from.

(b) Encouraging over transacting and churning of mutual fund investments to earn

higher commissions, even if they mean higher transaction costs and tax for

investors.

11. Avoid making negative statements about any AMC or scheme and ensure that

comparisons if any, are made with similar and comparable products.

12. Ensure that all investor related statutory communications (such as changes in

fundamental attributes, exit/entry load, exit options, and other material aspects)

are sent to investors reliably and on time.

13. Maintain confidentiality of all investor deals and transactions.

14. When marketing various schemes, remember that a client's interest and suitability

to their financial needs is paramount, and that extra commission or incentive

earned should never form the basis for recommending a scheme to the client.

15. Intermediaries will not rebate commission back to investors and avoid attracting

clients through temptation of rebate/gifts etc.

16. A focus on financial planning and advisory services ensures correct selling, and

also reduces the trend towards investors asking for pass back of commission.
UTI MUTUAL FUND

UTI Mutual Fund is managed by UTI Asset Management Company Private Limited

(Est.: Jan 14, 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,

Gn Block, Bandra - Kurla Complex, Bandra (East), Mumbai - 400 051 will provide

professionally managed back office support for all business services of UTI Mutual Fund

(excluding fund management) in accordance with the provisions of the Investment

Management Agreement, the Trust Deed, the SEBI (Mutual Funds) Regulations and the

objectives of the schemes. State-of-the-art systems and communications are in place to

ensure a seamless flow across the various activities undertaken by UTI AMC.

UTI AMC is a registered portfolio manager under the SEBI (Portfolio Managers)

Regulations, 1993 on February 3 2004, for undertaking portfolio management services

and also acts as the manager and marketer to offshore funds through its 100 % subsidiary,

UTI International Limited, registered in Guernsey, Channel Islands.

UTI Mutual Fund has come into existence with effect from 1st February 2003. UTI Asset

Management Company presently manages a corpus of over Rs.20000 Crore.

UTI Mutual Fund has a track record of managing a variety of schemes catering to the

needs of every class of citizenry. It has a nationwide network consisting 56 UTI Financial

Centres (UFCs) and representative offices in Dubai and London. With a view to reach to

common investors at district level, 11 satellite offices have also been opened in select
towns and districts. It has a well-qualified, professional fund management team, who has

been highly empowered to manage funds with greater efficiency and accountability in the

sole interest of unit holders.

Trustee

UTI Trustee Company Private Limiteda company incorporated

under The Companies Act, 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, 2002 executed

between the Sponsors and the Trustee Company (the Trustee).

UTI Tower, Gn Block, Bandra - Kurla Complex, Bandra (East), Mumbai -

400 051

Board of Directors

Shri Janki Ballabh,

Dr. P G Apte,

Shri S P Oswal,

Shri Babasaheb Neelkanth Kalyani

Asset Management Company


UTI Asset Management Company Limited is a company incorporated under The

Companies Act, 1956. Registered office: UTI Tower, Gn Block, Bandra - Kurla

Complex, Bandra (East), Mumbai - 400 051.

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, 2002 executed between UTI Trustee Company Limited

and UTI Asset Management Company Limited. The AMC was approved by SEBI to act

as the asset management company for UTI Mutual Fund vide their letter

no.MF/BC/PKN/03 dated January 14, 2003.

The paid up capital of the UTIAMC has been subscribed equally by the four sponsors,

viz. State Bank of India, LIC of India, Bank of Baroda and Punjab National Bank. 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, in accordance with

the provisions of the Investment Management Agreement, the Trust Deed, the SEBI

(Mutual Funds) Regulations and the objectives of the schemes.

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. UTI AMC has been registered as a portfolio

manager under the SEBI (Portfolio Managers) Regulations, 1993 on February 3 2004,

for undertaking portfolio management services.


NAME OF DIRECTORS OF UTI ASSET MANAGEMENT CO. (P)Ltd

Shri UK Sinha

Chairman& managing Director

Shri SK Bhargava

Non executive Chairman

Dr. KC Mishra

Director

Ms. 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), the largest

public financial investment institution and life insurer in India are the sponsors of UTI

Mutual Fund.

Bank of Baroda:-
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. During the period

since inception, 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. It has a track

record of uninterrupted profits since inception in 1908. 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 31.03.2006) covering almost

every State and Union Territory in the Country. The Bank is also one of the few Indian

Banks with a formidable presence overseas with 39 branches. Thus, the total branch

network is 2,743 as at 31.03.2006.

Life Insurance Corporation of India

Life Insurance Corporation of India (LIC) is amongst the largest insurance companies in

the world, with 2048 branches and having a Fund size of Rs. 463147.62 crore.

Three leading public sector banks – Bank of Baroda, Punjab National Bank and State

Bank of

India and Life Insurance Corporation of India (LIC), the largest public financial

investment institution and life insurer in India are the sponsors of UTI Mutual Fund.
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. The main object of

the bank under the said Act is as below:- An act to provide for the acquisition and

transfer of the undertaking of certain banking companies, having regard to their size,

resources coverage and organisation, in order to further to control the heights of the

economy, to meet progressively and serve better, the needs of the development of the

economy and to promote the welfare of the people, 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.

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

addition to this, 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.10,000/- made by

them towards setting up of the Mutual Fund.

SCHEMES OF UTI MUTUAL FUND

A. LIQUID FUND CATEGORY


• UTI Money Market Fund

• UTI Liquid Short-Term Plan

• UTI Liquid Fund-Cash Plan

• UTI Liquid Advantage Fund

B. 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 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. ASSET ALLOCATION FUNDS CATEGORY

• UTI Variable Investment Scheme

• UTI Dynamic Equity Fund

E. INDEX FUNDS CATEGORY

• PURE INDEX FUND

 UTI Master Index Fund

 UTI Nifty Index Fund

 UTI –Index Advantage Fund-Nifty Plan


• ENHANCED INDEX FUND

 UTI Index Select Fund

• EXCHANGE TRATED FUND

 UTI Sunder

F. 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
 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


PLAYERS IN MUTUAL FUND INDUSTRY

1. Alliance Capital

Alliance Capital Asset Management (India) Pvt. Ltd. (ACAM) is an affiliate of

Alliance Capital Management L.P. (Alliance Capital), a leading global investment

adviser headquartered New York, USA. Alliance operates out of eight offices in the

US and through its subsidiaries and affiliate offices in over 19 countries. Alliance

Capital and its subsidiaries employ over 4,000 persons worldwide.

2. Birla Sun Life Mutual Fund

Birla Sun Life Mutual Fund follows a conservative long-term approach to investment,

which is based on identifying companies that have good credit-worthiness and are

fundamentally strong. It places a lot of emphasis on quality of management and risk

control. This is done through extensive analysis that includes factory visits and field

research. It has one of the largest team of research analysts in the industry. The company

is one of India's leading, private mutual funds with a large customer base. It has been

recognised nationally with coveted awards.


3. Cholamandalam Mutual Fund

Cholamandalam AMC Limited (CAMC) is an asset management company, which offers

mutual funds to retail and institutional investors. The company was set up in 1996, as a

joint venture with Cazenove Investment Management of the UK. In 2001, the Murugappa

Group acquired Cazenove’s stake in the company; today CAMC is a subsidiary of

CIFCL. CAMC is known for its prudent philosophy in fund-management. Chola Triple

Ace, India’s first AAAf-rated mutual fund scheme, has not only retained its rating since

inception, but also has a consistent track record of dividend payments. Based in Mumbai,

CAMC manages over Rs.1000 crores of assets

4. Franklin Templeton

Franklin Templeton Investments is one of the largest financial services groups in the

world based at San Mateo, California USA. The group has US$ 409.2 billion in assets

under management globally (as of April 30, 2005).

Franklin Templeton has set-up offices in 33 locations nationwide and manages Rs.17,

079.29 crores in assets and an investor base of 10.5 lacs as of May 31, 2005.
5. ING Mutual Fund

ING Vysya Mutual Fund brings with it the vast international experience and

professional expertise of the ING Group. With presence in eight cities across the

country, and over Rs. 1600 crores of Assets Under Management, ING Vysya Mutual

Fund aims to provide investors with the most practical and secure investment

opportunities to invest their valuable savings. This is combined with a range of

innovative options to deliver healthy returns combined with a high degree of security.

Currently, the fund offers four equity, five debt and two hybrid schemes to its

investors

6. Kotak Mahindra Mutual Fund

Kotak Mahindra Mutual Fund (KMMF) is managed by Kotak Mahindra Asset

Management Company Ltd., a wholly owned subsidiary of Kotak Mahindra Bank

Ltd. Kotak Mahindra Mutual Fund launched its Schemes in December 1998 and today

manages assets over and above Rs. 7353.82 cr. contributed by more than 1,99,818

investors in various schemes. KMMF has to its credit the launching of innovative

schemes and plans like Kotak Gilt and Free Life Insurance with Kotak Bond Deposit

Plan.
7. Prudential ICICI Mutual Fund

Prudential ICICI Asset Management Company, (55%:45%) a joint venture between

Prudential Plc, UK's leading insurance company and ICICI Bank Ltd, India's premier

financial institution.

The joint venture was formed with the key objective of providing the Indian investor

mutual fund products to suit a variety of investment needs. The AMC has already

launched a range of products to suit different risk and maturity profiles. Prudential ICICI

Asset Management Company Limited has a networth of about Rs. 80.14 crore (1 crore =

10 million) as of March 31, 2004. Both Prudential and ICICI Bank Ltd have a strategic

long-term commitment to the rapidly expanding financial services sector in India


8. Reliance Capital Mutual Fund

Reliance Capital Asset Management Limited (RCAM), a company registered under

the Companies Act, 1956 was appointed to act as the Investment Manager of Reliance

Mutual Fund.

Reliance Capital Asset Management Limited is a wholly owned subsidiary of

Reliance Capital Limited, the sponsor. The entire paid-up capital (100%) of Reliance

Capital Asset Management Limited is held by Reliance Capital Limited.

9. SBI Mutual Fund

SBI Mutual Fund draws strength from India's premier and largest bank; the State Bank of

India. Set up on July 1, 1955, the State Bank of India is the largest banking operation in

the country.

Through years of commitment to service and national development, SBI has grown into

an instrument of social change. Today, it has 9,039 branches in India (excluding 4599

branches of banking subsidiaries) and 54 offices in 28 countries spread over all time

zones.
10. Tata Mutual Fund

Tata Asset Management Ltd. is a part of the Tata group - one of India's largest and most

respected industrial group. The Tata Group is one of India's best-known conglomerate in

the private sector with a turnover of around US $ 11.2 billion (equivalent to 2.4 % of

India's GDP). Long known for its adherence to business ethics, it is India's most

respected private business group. With 210,443 employees across 93 companies, it is also

India's largest employer in the private sector.

11. 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. DSP Merrill Lynch is one of

India's leading financial services company.

12. HDFC

HDFC Asset Management Company Ltd(AMC) was incorporated under the Companies

Act, 1956, on December 10, 1999, and was approved to act as an Asset Management

Company for the Mutual Fund by SEBI on June 30, 2000.

The registered office of the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh

Marg, 169, Backbay Reclamation, Churchgate, Mumbai - 400 020.


13. FIDELITY INVESTMENT

14. STANDARD CHARTERED

15. ESCORTS

16. PRINCIPAL MUTUAL FUND

17. HSBC

18. Sundaram Mutual Fund

Mutual Funds – FAQs


Net Asset Value (NAV)

Net Asset Value is the market value of the assets of the scheme minus its liabilities. 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. Also called Offer Price. It may include

a sales load.

Repurchase Price

Is the price at which a close-ended scheme repurchases its units and it may include a

back-end load. This is also called Bid Price.

Redemption Price

Is the price at which open-ended schemes repurchase their units and close-ended schemes

redeem their units on maturity. Such prices are NAV related.

Sales Load

Is a charge collected by a scheme when it sells the units. Also called, ‘Front-end’ load.
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
The data collected from primary sources through collection of the responses of the

questionnaire was assembled, stored, selected and analyzed. The analysis of the data is as

under here-

1. Do you know about mutual fund

Yes 64
No 36

36

64

yes no

INTERPRETATION:
From the above diagram it is quite clear that awareness towards mutual funds is 64% i.e.,

mostly majority is aware of the mutual fund.

2. AWARENESS TOWARDS MF THROUGH

NO OF
NATURE OF AWARENESS
RESPONDENT
NEWSPAPER 30
T.V. 23
MAGAZINES 20
FRIENDS & RELATIVES 10
FINANCIAL ADVISOR 7
OTHERS 10

25
23

20

20

15
10

10

10
7

0
0

0
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%).

3. INVESTMENT IN MUTUAL FUNDS

TYPES OF AMC NO OF RESPONDENTS


UTI 40
KOTAK 12
HDFC 10
PRUDENTIAL ICICI 25
FRANKLIN TEMPLTON 8
OTHERS 5

8 5

40

25

10 12

UTI KOTAK HDFC


PRUDENTIAL ICICI FRANKLIN TEMPLTON 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%).


4.Do you have investment in mutual fund

YES 24
NO 76

24

76

YES NO

INTERPRETATION:

From the above table it is quite clear that mostly respondents do not have investment in

mutual fund.

5.REASON TO PREFER MUTUAL FUND


Attributes/Rank 1 2 3 4 5

TAX SAVING 270 170 40 20 0


HIGH RETURN 155 260 60 15 10
LIQUIDITY 50 40 185 140 85
TRANSPRANCY 15 20 175 185 105
FLEXIBILITY 10 10 40 140 300

350

300

250 TAX SAVING

200 HIGH RETURN


LIQUIDITY
150
TRANSPRANCY
100 FLEXIBILITY

50

0
1 2 3 4 5

INTERPRETATION:

From the above table it is quite clear that mostly respondents invested money due to tax

benefit followed by high return, liquidity, transprancy, and flexibility.

6.What the most preferred period of investment


PERIODS NO OF RESPONDENTS
BELOW 1 YEAR 50
1-3 YEAR 260
3-5 YEAR 120
ABOVE 5 YEAR 70

60

50

40

30 Series1

20

10

0
BELOW 1 1-3 YEAR 3-5 YEAR ABOVE 5
YEAR YEAR

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.

7. Do you have any future plan for investment


YES 64
NO 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 .As the above graph shows that 64 % respondents are interested to

invest in future.

8.Have you ever invested in UTI Mutual Fund?

YES 33

NO 67
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.

9.IF YES, IN WHICH SCHEME?

NATURE OF SCHEME No. Of RESPONDENTS

EQUITY 8
BALANCED 16
DEBT 9

No. Of RESPONDENTS

18
16
16
14
12 9
8
10
8
6
4
2
0
EQUITY BALANCED DEBT
No. Of RESPONDENTS

INTERPRETATION:

From the above table it is quite clear that 48.48% respondents have investment in UTI

Balanced fund followed by debt fund (27.27%) and equity fund (24.24%).

10..HOW DO YOU RATE UTI MUTUAL FUND AGIANST OTHER MUTUAL

FUND?
NO OF
RATINGS
RESPONDENTS
EXCELLENT 8
GOOD 63
AVERAGE 22
POOR 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 RESPONDENTS
EXCELLENT 2
GOOD 10
AVERAGE 14
POOR 7

14

12

10

8
Series1
6

0
EXCELLENT GOOD AVERAGE POOR

INTERPRETATIONS:

It can be concluded by saying that the maximum respondents rate UTI mutual fund as

average towards sales and service.


CONCLUSION

It was very difficult to pursue people to invest their capital, as the mindset of people is

not to invest in any type risk, which is attached to their capital. For the purpose, we had

to meet different type of people. Some were managers, businessman, service class,

doctors, retired persons etc. All have a different mind and their own views while they

think of investing in mutual fund, as the market was not so good. 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. During this period we

collected information on the following funds also, such as Birla Mutual Fund, Franklin

Templeton, Prudential ICICI Mutual Fund. All of them have different schemes. 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.

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.

• Most of the respondents were aware through newspapers and magazines.

• Among the total respondents covered maximum respondent had already

investment in mutual funds.

• The most popular and well known mutual funds is UTI MUTUAL
FUND and followed by PRUDENTIAL ICICI, KOTAK MAHINDRA, HDFC

MUTUAL FUNDS and FRANKLIN TEMPLENTON.

• Among the total respondents covered, maximum respondents prefer mutual

funds due to tax benefits followed by high returns transparency, liquidity and

flexibility.

• The respondent who have invested UTI mutual funds, are not very much

satisfied with services of UTI mutual funds and now they are switching to private

mutual funds for better services.

• High net worth individuals wants high returns on their money so they want to

invest in equity-oriented funds.

• Medium class individuals want moderate returns as well as security on their

money so they prefer in balanced funds.

• The investors, who had been lost their money in mutual funds, are now

switching to other saving investments.


RECOMMENDATIONS & FINDINGS

• According to agents, private mutual fund’s advertisement and logo concept

plays major role in awareness about the product. 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.

• An agent in continues should be increased to boost sales.

• As the mutual fund industry is growing and facing tough competition from

foreign brands, UTI mutual funds should focus on product awareness and product

preference advertising.

• There are some investors who have invested in UTI mutual funds, 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.
ANNEXURES

The following important annexure relevant to this study are enclosed with the –

• Questionnaire

• Graph of Indian mutual fund industry


Awareness in marketing of Mutual Funds

(With reference to UTI Mutual Funds)

QUESTIONNAIRE

NAME :

OCCUPATION :

COMPANY NAME :

DESIGNATION :

ADDRESS :

TEL. NO. :

MOB. NO. :

E-MAIL :

Yes No
1.Do you know about Mutual Funds?

2. If Yes, than from which source

News Paper

T.V.

Magazines

Friends and Relatives

Financial Advisor

Others (please specify)


3. The name, which comes to your mind when it comes to mutual funds

Yes No
4. Do you have any investment in mutual funds

If yes, company & fund name. I.

II.

III.

5. Please tell why you prefer mutual funds (please mention in the order of preference)

I. Tax Benefit

II. High return

III. Liquidity

IV. Transparency

V. Flexibility

6.What is the most preferred period of investment in the mutual fund.

I. Below 1 Year

II. 1-3 Year

III. 3-5 Year


IV. Above 5 year

Yes No
7. Do you have any future plan for investing in mutual funds?

Yes No
8. Have you ever invested in UTI mutual funds?

9. If yes, in which fund

Equity Balanced Debt

10. How do you rate UTI mutual fund against other mutual funds

Excellent Good Average Poor

11. What is your opinion regarding marketing, sales and after sales services of UTI

mutual funds.

Excellent Good Average Poor


12. Give your suggestions regarding UTI Mutual funds as a Port Folio Manager

Signature

UTI Mutual Funds 41 Navyug Market, Ghaziabad.

Tel. 2790966/0366
BIBLIOGRAPHY

BOOKS:

MARKETING RESEARCH C.R.KOTHARI

PROJECT REPORT WRITING M.K.RAMPAL & S.L.GUPTA

UTI BULLETIN PLUS MARCH -APRIL

INTERNET:

www.utimf.com

www.amfiindia.com

www.mutualfundsindia.com

www.google.com