A project report submitted in partial fulfillment of the requirements of the award of the degree of

(Reg no: - 1225109417) Under the esteemed guidance of


Asst. Prof

GITAM INSTITUTE OF MANAGEMENT (NAAC Accredited ‘A’ Grade institution) (GITAM University, Visakhapatnam.) (2009-2011)


I hereby declare that the project report title “Analysis of the customer attitude, preference and satisfaction level towards mutual funds investments” is done and submitted by me is a genuine work. And it is not submitted to any other university or published at any time before. The project work is partial fulfillment of the requirements for the award of M.B.A Degree by the GITAM INSTITUTION OF MANAGEMENT, GITAM UNIVERSITY, VISAKHAPATNAM.

Place:-Visakhapatnam. Date:/ /2011 the student 09417) Signature of M. Lalit Kumar (12251 GITAM Institutions of Management, GITAM University, Visakhapatnam.


This is to certify that the project report entitled “Analysis of the customer attitude, preference and satisfaction level towards mutual funds investments” with reference to







Visakhapatnam, is a bonafied, work carried out by M. Lalit Kumar under my guidance in partial fulfillment for the award of degree of “MASTER OF BUSINESS ADMINISTRATION” during the period 2009-2011.

Place: - Visakhapatnam. Date:/ /2011 DEVI INSTITUTE OF MANAGEMENT


“Give a man a fish, he will eat it. Train a man to fish, He will feed his family.”
The above saying highlights the importance of Practical knowledge. Practical training is an important part of the theoretical studies. It is of an immense importance in the field of management. It offers the student to explore the valuable treasure of experience and an exposure to real work culture followed by the industries and thereby helping the students to bridge gap between the theories explained in the books and their practical implementations. Project plays an important role in future building of an individual so that he/she can better understand the real world in which he has to work in future. The theory greatly enhances our knowledge and provides opportunities to blend theoretical with the practical knowledge. I have done my Project on “Customer attitude, preference and satisfaction level towards investment of mutual fund”. I have tried to cover each and every aspect related to the topic with best of my capability. I hope this study would help many people in the future. (Lalit Kumar) (1225109417)

I am thankful to Prof. K. Shiva Ramakrishna, Principal of GITAM Institute of Management, Prof. P. Sheela, Vice Principal of GITAM Institute of Management, and Associate Prof K. Uma Devi, Program Co-ordinator, GITAM Institute of Management, GITAM University, Visakhapatnam, for providing me the opportunity to do my project.

I express my sincere thanks to Ms. S. Anjani Devi, whose supervision, valuable guidance and help, enabled me to complete this project work. This project is a result of the hard work and sincere effort put by my hands. And I am grateful to Mr. Shivaram Pandey (Sales head Andhra Pradesh) for giving me this opportunity to do my project work in Franklin Templeton Investments India Pvt Ltd, Visakhapatnam. I convey my sincere thanks to Mr. Suresh Kumar Sela, Pavan Patnaik and Sumitha Nair for the constant advice and encouragement. I also wish to express my sincere thanks to all the customers of Franklin Templeton Investments India Pvt

Ltd, Visakhapatnam, who have directly or indirectly help me in completing my project work.

Chapter 1 Page No. • Meaning of Mutual Funds • Classification of Mutual Fund • Performance of Mutual Funds in India - 15 • Other Important Concepts - 33 Chapter 2 • Need of the study • Objectives of the study • Scope of the study • Methodology • Presentation of the study • Limitation Chapter 3 Profile • Industry Profile - 47 • Organization Profile • Product Profile at Franklin Templeton - 82 Chapter 4

02 - 07 08 - 12 13 16

34 35 36 37 38 39

40 48 - 62 62

Analysis of Study 107 Chapter 5 • Findings 110 • Suggestions 113 • Conclusion 115 Bibliography Annexure



108 111 114



List of Tables


Title Page No.
Savings Plan Investment plans Age consideration Period of investment Interested in Mutual Fund Anticipation of Risk Primary Goal Risk with Return Expected Age combination Factors to consider Service providers Satisfaction Level 83 85 87 89 91 93 95 97 99 102 104 106

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12

List of Graphs
2.1 Savings Plan 83

2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12

Investment plans Age consideration Period of investment Interested in Mutual Fund Anticipation of Risk Primary Goal Risk with Return Expected Age combination Factors to consider Service providers Satisfaction Level

85 87 89 91 93 95 97 99 102 104 106

Mutual funds are basically financial intermediaries, which collect the savings of investors and invest them in a large and well-diversified portfolio of securities such as money market instruments, corporate and government bonds and equity shares of joint stock companies. A mutual fund is a pool of common funds invested by different investors, who have no contact with each other. Mutual funds are conceived as institutions for providing small investors with avenues of investments in the capital market. Since small investors generally do not have adequate time, knowledge, experience and resources for directly accessing the capital market, they have to rely on an intermediary, which undertakes informed investment decisions and provides consequential benefits of professional expertise. The raison of mutual funds is their ability to bring down the transaction costs. The advantages for the investors are reduction in risk, expert professional management, diversified portfolios, liquidity of investment and tax benefits. By pooling their assets through mutual

funds, investors achieve economies of scale. The interests of the investors are protected by the SEBI, which acts as a watchdog. Mutual funds are governed by the SEBI (Mutual Funds) Regulations, 1996.

The flow chart below describes broadly the working of a Mutual Fund:



The goal of a mutual fund is to provide an individual to make money. There are several thousand mutual funds with different investments strategies and goals to chosen from. Choosing one can be over whelming, even though it need not be different mutual funds have different risks, which differ because of the fund’s goals fund manager, and investment style. The fund itself will still increase in value, and in that way you may also make money therefore the value of shares you hold in mutual fund will increase in value when

the holdings increases in value capital gains and income or dividend payments are best reinvested for younger investors Retires often seek the income from dividend distribution to augment their income with reinvestment of dividends and capital distribution your money increase at an even greater rate. When you redeem your shares what you receive is the value of the share.

There are many entities involved and the diagram below illustrates the organizational set up of a mutual fund:

History and Structure of Indian Mutual Fund Industry
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank. The history of mutual funds in India can be broadly divided into four distinct phases:

First Phase – 1964-87:
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700 crores of assets under management.

Second Phase – 1987-1993 (Entry of Public Sector Funds):
1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Can-bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004 crores.

Third Phase – 1993-2003 (Entry of Private Sector Funds):
With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44, 541 crores of assets under management was way ahead of other mutual funds.

Fourth Phase – since February 2003:
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29, 835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76, 000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.1, 53, 108 crores under 421 schemes.

Any mutual fund has an objective of earning income for the investors and/ or getting increased value of their investments. To achieve these objectives mutual funds adopt different strategies and accordingly offer different schemes of investments. On this basis the simplest way to categorize schemes would be to group these into two broad classifications:

Operational classification highlights the two main types of schemes, i.e., open-ended and close-ended which are offered by the mutual funds. Portfolio classification projects the combination of investment instruments and investment avenues available to mutual funds to manage their funds. Any portfolio scheme can be either open ended or close ended.

Operational Classification:
 Open Ended Schemes: As the name implies the size of the

scheme (Fund) is open – i.e., not specified or pre-determined. Entry to the fund is always open to the investor who can subscribe at any time. Such fund stands ready to buy or sell its

securities at any time. It implies that the capitalization of the fund is constantly changing as investors sell or buy their shares. Further, the shares or units are normally not traded on the stock exchange but are repurchased by the fund at announced rates. Open-ended schemes have comparatively better liquidity despite the fact that these are not listed. The reason is that investors can any time approach mutual fund for sale of such units. No intermediaries are required. Moreover, the realizable amount is certain since repurchase is at a price based on declared net asset value (NAV). No minute to minute fluctuations in rates haunt the investors. The portfolio mix of such schemes has to be investments, which are actively traded in the market. Otherwise, it will not be possible to calculate NAV. This is the reason that generally open-ended schemes are equity based. Moreover, desiring frequently traded securities, open-ended schemes hardly have in their portfolio shares of comparatively new and smaller companies since these are not generally traded. In such funds, option to reinvest its dividend is also available. Since there is always a possibility of withdrawals, the management of such funds becomes more tedious as managers have to work from crisis to crisis. Crisis may be on two fronts, one is, that unexpected withdrawals require funds to maintain a high level of cash available every time implying thereby idle cash. Fund managers have to face questions like ‘what to sell’. He could very well have to sell his most liquid assets. Second, by virtue of this situation such funds may fail to grab favorable opportunities. Further, to match quick cash payments, funds cannot have matching realization from their portfolio due to intricacies of the stock market. Thus, success of the open-ended schemes to a great

extent depends on the efficiency of the capital market and the selection and quality of the portfolio.
 Close Ended Schemes: Such schemes have a definite period

after which their shares/ units are redeemed. Unlike openended funds, these funds have fixed capitalization, i.e., their corpus normally does not change throughout its life period. Close ended fund units trade among the investors in the secondary market since these are to be quoted on the stock exchanges. Their price is determined on the basis of demand and supply in the market. Their liquidity depends on the efficiency and understanding of the engaged broker. Their price is free to deviate from NAV, i.e., there is every possibility that the market price may be above or below its NAV. If one takes into account the issue expenses, conceptually close ended fund units cannot be traded at a premium or over NAV because the price of a package of investments, i.e., cannot exceed the sum of the prices of the investments constituting the package. Whatever premium exists that may exist only on account of speculative activities. In India as per SEBI (MF) Regulations every mutual fund is free to launch any or both types of schemes.

Portfolio Classification of Funds:
Following are the portfolio classification of funds, which may be offered. This classification may be on the basis of (A) Return, (B) Investment Pattern, (C) Specialized sector of investment, (D) Leverage and (E) Others.

Return based classification:
To meet the diversified needs of the investors, the mutual fund schemes are made to enjoy a good return. Returns expected are in

form of regular dividends or capital appreciation or a combination of these two.
1. Income Funds: For investors who are more curious for

returns, Income funds are floated. Their objective is to maximize current income. Such funds distribute periodically the income earned by them. These funds can further be spitted up into categories: those that stress constant income at relatively low risk and those that attempt to achieve maximum income possible, even with the use of leverage. Obviously, the higher the expected returns, the higher the potential risk of the investment.
2. Growth Funds: Such funds aim to achieve increase in the








appreciation. Such funds invest in growth oriented securities which can appreciate through the expansion production facilities in long run. An investor who selects such funds should be able to assume a higher than normal degree of risk.
3. Conservative Funds: The fund with a philosophy of “all things

to all” issue offer document announcing objectives as: (i) To provide a reasonable rate of return, (ii) To protect the value of investment and, (iii) To achieve capital appreciation consistent with the fulfillment of the first two objectives. Such funds which offer a blend of immediate average return and reasonable capital appreciation are known as “middle of the road” funds. Such funds divide their portfolio in common stocks and bonds in a way to achieve the desired objectives. Such funds have been most popular and appeal to the investors who want both growth and income.  Investment Based Classification:

Mutual funds may also be classified on the basis of securities in which they invest. Basically, it is renaming the subcategories of return based classification.
1. Equity Fund: Such funds, as the name implies, invest most of

their investible shares in equity shares of companies and undertake the risk associated with the investment in equity shares. Such funds are clearly expected to outdo other funds in rising market, because these have almost all their capital in equity. Equity funds again can be of different categories varying from those that invest exclusively in high quality ‘blue chip companies to those that invest solely in the new, unestablished companies. The strength of these funds is the expected capital appreciation. Naturally, they have a higher degree of risk.
2. Bond Funds: such funds have their portfolio consisted of

bonds, debentures, etc. this type of fund is expected to be very secure with a steady income and little or no chance of capital appreciation. Obviously risk is low in such funds. In this category we may come across the funds called ‘Liquid Funds’ which specialize in investing short-term money market instruments. The emphasis is on liquidity and is associated with lower risks and low returns.
3. Balanced Fund: The funds, which have in their portfolio a

reasonable mix of equity and bonds, are known as balanced funds. Such funds will put more emphasis on equity share investments when the outlook is bright and will tend to switch to debentures when the future is expected to be poor for shares.  Sector Based Funds:

There are number of funds that invest in a specified sector of economy. While such funds do have the disadvantage of low diversification by putting all their all eggs in one basket, the policy of specializing has the advantage of developing in the fund managers an intensive knowledge of the specific sector in which they are investing. Sector based funds are aggressive growth funds which make investments on the basis of assessed bright future for a particular sector. These funds are characterized by high viability, hence more risky.

The performance of mutual funds in India from the day the concept of mutual fund took birth in India. The year was 1963 Unit Trust of India invited investors or rather to those who believed in savings, to park their money in UTI Mutual Fund. For 30 years it ranked top without a single second player. Though the 1988 year saw some new mutual fund companies, but UTI remained in a monopoly position. The performance of mutual funds in India in the initial phase was not even closer to satisfactory level. People rarely understood, and of course investing was out of question. But yes, some 24 million shareholders was accustomed with guaranteed high returns by the beginning of liberalization of the industry in 1992. This good record of UTI became marketing tool for new entrants. The expectations of investors touched the sky in profitability factor. However, people were miles away from the preparedness of risks factor after the liberalization. The Assets under Management of UTI was Rs. 67bn. by the end of 1987. Let me concentrate about the performance of mutual funds in India through figures. From Rs. 67bn. the Assets under Management

rose to Rs. 470 bn. in March 1993 and the figure had a three times higher performance by April 2004. It rose as high as Rs. 1,540bn. The net asset value (NAV) of mutual funds in India declined when stock prices started falling in the year 1992. Those days, the market regulations did not allow portfolio shifts into alternative investments. There were rather no choices apart from holding the cash or to further continue investing in shares. One more thing to be noted, since only closed-end funds were floated in market, the investors disinvested by selling at a loss the in the secondary market. The performance of mutual funds in India suffered qualitatively. The 1992 stock market scandal, the losses by disinvestments and of course the lack of transparent rules in the whereabouts rocked confidence among the investors. Partly owing to a relatively weak stock market performance, mutual funds have not yet recovered, with funds trading at an average discount of 1020 percent of their net asset value. The supervisory authority adopted a set of measures to create a transparent and competitive environment in mutual funds. Some of them were like relaxing investment restrictions into the market, introduction of open-ended funds, and paving the gateway for mutual funds to launch pension schemes.

The measure was taken to make mutual funds the key instrument for long-term saving. The more the variety offered, the quantitative will be investors. At last to mention, as long as mutual fund companies are performing with lower risks and higher profitability within a short span of time, more and more people will be inclined to invest until and unless they are fully educated with the dos and don’ts of mutual funds

These funds can survive and thrive only if they can live up to the hopes and trusts of their individual members. These hopes and trusts echo the peculiarities which support the emergence and growth of such insecurity of such investors who come to the rescue of such investors who face following constraints while making direct investments:  Limited resources in the hands of investors quite often take them away from stock market transactions.  Lack of funds forbids investors to have a balanced and diversified portfolio.  Lack of professional knowledge associated with investment business unable investors to operate gainfully in the market. Small investors can hardly afford to have ex-pensive investment consultations.  To buy shares, investors have to engage share brokers who are the members of stock exchange and have to pay their brokerage.  They hardly have access to price sensitive information in time.  It is difficult for them to know the development taking place in share market and corporate sector.  Firm allotments are not possible for small investors on when there is a trend of over subscription to public issues.

Mutual Funds are becoming a very popular form of investment characterized by many advantages that they share with other forms of investments and what they possess uniquely themselves. The primary objectives of an investment proposal would fit into one or combination of the two broad categories, i.e., Income and Capital gains. How mutual fund is expected to be over and above an individual in achieving the two said objectives, is what attracts investors to opt for mutual funds. Mutual fund route offers several important advantages. Diversification: A proven principle of sound investment is diversification, which is the idea of not putting all your eggs in one basket. By investing in many companies the mutual funds can protect themselves from unexpected drop in values of some shares. The small investors can achieve wide diversification on his own because of many reasons, mainly funds at his disposal. Mutual funds on the other hand, pool funds of lakhs of investors and thus can participate in a large basket of shares of many different companies. Majority of people consider diversification as the major strength of mutual funds. Expertise Supervision: Making investments is not a full time assignment of investors. So they hardly have a professional attitude towards their investment. When investors buy mutual fund scheme, an essential benefit one acquires is expert management of the money he puts in the fund. The professional fund managers who supervise fund’s portfolio take desirable decisions viz., what scrip’s are to be bought, what investments are to be sold and more appropriate decision as to timings of such buy and sell. They have

extensive research facilities at their disposal, can spend full time to investigate and can give the fund a constant supervision. The performance of mutual fund schemes, of course, depends on the quality of fund managers employed. Liquidity of Investment: A distinct advantage of a mutual fund over other investments is that there is always a market for its unit/ shares. Moreover, Securities and Exchange Board of India (SEBI) requires the mutual funds in India have to ensure liquidity. Mutual funds units can either be sold in the share market as SEBI has made it obligatory for closed-ended schemes to list themselves on stock exchanges. For open-ended schemes investors can always approach the fund for repurchase at net asset value (NAV) of the scheme. Such repurchase price and NAV is advertised in newspaper for the convenience of investors. Reduced risks: Risk in investment is as to recovery of the principal amount and as to return on it. Mutual fund investments on both fronts provide a comfortable situation for investors. The expert supervision, diversification and liquidity of units ensured in mutual funds reduces the risks. Investors are no longer expected to come to grief by falling prey to misleading and motivating ‘headline’ leads and tips, if they invest in mutual funds. Safety of Investment: Besides depending on the expert supervision of fund managers, the legislation in a country (like SEBI in India) also provides for the safety of investments. Mutual funds have to broadly follow the laid down provisions for their regulations, SEBI acts as a watchdog and attempts whole heatedly to safeguard investor’s interests. Tax Shelter: Depending on the scheme of mutual funds, tax shelter is also available. As per the Union Budget-2003, income earned through dividends from mutual funds is 100% tax-free at the hands of the investors.

Minimize Operating Costs: Mutual funds having large invisible funds at their disposal avail economies of scale. The brokerage fee or trading commission may be reduced substantially. The reduced operating investors. Investing in securities through mutual funds has many advantages like – option to reinvest dividends, strong possibility of capital appreciation, regular returns, etc. Mutual funds are also relevant in national interest. The test of their economic efficiency as financial intermediary lies in the extent to which they are able to mobilize additional savings and channeling to more productive sectors of the economy. costs obviously increase the income available for

The Economic Times survey on retail equity investors in the secondary market has identified different categories of investors based on their characteristics. Many questions are raised about the behavior of the small investor under different circumstances. The answers to many of these questions and similar others is not difficult to interpret once we identify the different types of retail investors in the stock markets.

The survey shows that there are five different kinds of retail investors:  Intellectuals  Cavaliers  Reactivates  Opportunists  Gamblers This classification is based on the attitudes of investors towards secondary market investments. Let’s explain each type of investor and understand their investment psyche and behavioral patterns.

This retail investor group forms around 17% of the total retail investment class. They are the intelligent investors who follow an intelligent, individualist approach to investment planning and a welldefined and deliberate strategy for stock investment. These investors are self reliant good stock pickers and try to monetize market knowledge. Giving proof of their intelligence, they consider low-risk; low–gain guaranteed return avenues as passé. Also, they believe in and work towards a well-planned. Asset allocation and seek the right mix of stability and reliability of returns. The ‘intellectuals’ are unaffected by short–term fluctuations and prefer long–term investments. Moreover, they are disciplined enough to observe profit targets which they have set for themselves. And as they invest for the long term, they are not concerned with short term losses. They manager their money themselves and understand the industry/sector before investing.


As high as 49% of the small retail equity investors are ‘cavaliers’. They are those who have lost money in ‘fly-by –night ‘schemes. Therefore, much of their investments are driven by the desire to recover past losses and make profits in the future. As such, they invest aggressively into equities, mostly in volatile sectors in order to make big gains. However, they will also invest in FDs and insurance as a precautionary measure. They get tempted to speculate in the secondary market and once in a while, they actually speculate but with smaller amounts. The cavaliers try to gather all available information and compare it with opinions from experts in the media, but will trust their own judgment before making decisions.

About 5% of the retail equity investors fall under this category. These investors basically short-term investors, are impulsive info addicts who are vulnerable to external influences and as such, they have no specific investment patterns, They believe that dynamic and ad hoc investments will result in better profits and are prompted to act on popular opinion rather than systematic planning. As they lack in confidence, experience and expertise, they constantly rely on advice from in the know people such as brokers and analysts. They are extremely anxious about price fluctuations or short-term declines. They are very skeptical and believe that small declines can lead to larger losses if not reacted upon immediately. Therefore, the reactivists constantly seek new information about stocks in which they are currently invested in, to ensure a feeling of security. Moreover, their investments apart from equities are solely for taxsaving purposes.

This class of investors account for 10% of the retail equity investor universe. This category is defensively pessimistic and prefers to take only familiar risks. As they have a low risk tolerance, they are wary

of volatility in the equity market. They invest into equities by imitating larger trends rather than with their individual analysis and consider equity investment as a gamble. They want to be in the black all the time and as such, prefer popular stocks with immediate profit potential. Opportunists need positive price movements to encourage their investments into equities and they will not hunt for bargains of invest on price declines. But before investing into equities. They prefer to build a critical mass of fixed income instruments as they find fixed income options a reassuring way of safe bets. The opportunists‘choice of investments as they find fixed income options a reassuring way of safe bets. The opportunist’s choice of investment is biased towards well known and previously owned securities, including equities. This investor class is wary of investing into equities when the market has moved up too high too soon. So, if you have not invested in the current market, you are probably an ‘opportunist’.

19% the retail investor population is made up of not actual investors. But gamblers.’ They are the typical thrill seeking traders who link profitability to personal achievement. They experiment a lot, mostly driven by instinct and self confidence; as such their stock selection is more a random exercise that lacks rationale. This class perceives all securities as tradable commodities to be bought and sold in the short term. However, they know completely about the risk factors and therefore, have a tendency to invest only as much as they are willing to lose. As a part, of the game and this does not act as a hindrance for future investments. They do not trust brokers, but will secretly verify their suggestions for fear of missing an opportunity. They ascertain fair value of stocks on gut feeling rather than any financial analysis and use sudden downward fluctuations as buying opportunities.

The present marketing strategies of mutual funds can be divided into two main headings:  Direct marketing  Selling through intermediaries.  Joint Calls

Direct Marketing:
This constitutes 20 percent of the total sales of mutual funds. Some of the important tools used in this type of selling are: Personal Selling: In this case the customer support officer or Relationship Manager of the fund at a particular branch takes appointment from the potential prospect. Once the appointment is fixed, the branch officer also called Business Development Associate (BDA) in some funds then meets the prospect and gives him all details about the various schemes being offered by his fund. The conversion rate in this mode of selling is in between 30% - 40%. Telemarketing: In this case the emphasis is to inform the people about the fund. The names and phone numbers of the people are

picked at random from telephone directory. Some fund houses have their database of investors and they cross sell their other products. Sometimes people belonging to a particular profession are also contacted through phone and are then informed about the fund. Generally the conversion rate in this form of marketing is 15% - 20%. Direct mail: This one of the most common method followed by all mutual funds. Addresses of people are picked at random from telephone directory, business directory, professional directory etc. The customer support officer (CSO) then mails the literature of the schemes offered by the fund. The follow up starts after 3 – 4 days of mailing the literature. The CSO calls on the people to whom the literature was mailed. Answers their queries and is generally successful in taking appointments with those people. It is then the job of BDA to try his best to convert that prospect into a customer. Advertisements in newspapers and magazines: The funds regularly advertise in business newspapers and magazines besides in leading national dailies. The purpose to keep investors aware about the schemes offered by the fund and their performance in recent past. Advertisement in TV/FM Channel: The funds are aggressively giving their advertisements in TV and FM Channels to promote their funds. Hoardings and Banners: In this case the hoardings and banners of the fund are put at important locations of the city where the movement of the people is very high. The hoarding and banner generally contains information either about one particular scheme or brief information about all schemes of fund.

Selling through intermediaries:
Intermediaries contribute towards 80% of the total sales of mutual funds. These are the people/ distributors who are in direct touch with the investors. They perform an important role in attracting new customers. Most of these intermediaries are also involved in selling

shares and other investment instruments. They do a commendable job in convincing investors to invest in mutual funds. A lot depends on the after sale services offered by the intermediary to the customer. Customers prefer to work with those intermediaries who give them right information about the fund and keep them abreast with the latest changes taking place in the market especially if they have any bearing on the fund in which they have invested. Regular Meetings with distributors: Most of the funds conduct monthly/bi-monthly meetings with their distributors. The objective is to hear their complaints regarding service aspects from funds side and other queries related to the market situation. Sometimes, special training programs are also conducted for the new agents/ distributors. Training involves giving details about the products of the fund, their present performance in the market, what the competitors are doing and what they can do to increase the sales of the fund.

Joint Calls:
This is generally done when the prospect seems to be a high net worth investor. The BDA and the agent (who is located close to the HNI’s residence or area of operation) together visit the prospect and brief him about the fund. The conversion rate is very high in this situation, generally, around 60%. Both the fund and the agent provide even after sale services in this particular case. Meetings with HNI’s: This is a special feature of all the funds. Whenever a top official visits a particular branch office, he devotes at least one to two hours in meeting with the HNI’s of that particular area. This generally develops a faith among the HNI’s towards the fund.


Portfolio diversification: - Mutual Funds invest in a well-diversified portfolio of securities which enables investor to hold a diversified investment portfolio (whether the amount of investment is big or small) Professional management: - Fund manager undergoes through various research works and has better investment management skills which ensure higher returns to the investor than what he can manage on his own. Less risk: - Investors acquire a diversified portfolio of securities even with a small investment in a Mutual Fund. The risk in a diversified portfolio is lesser than investing in merely 2 or 3 securities. Low transaction cost: - Due to the economies of scale (benefits of larger volumes), mutual funds pay lesser transaction costs. These benefits are passed on to the investors. Liquidity: - An investor may not be able to sell some of the shares held by him very easily and quickly, whereas units of a mutual fund are far more liquid.

Choice of scheme: - Mutual funds provide investors with various schemes with different investment objectives. Investors have the option of investing in a scheme having a correlation between its investment objectives and their own financial goals. These schemes further have different plans/options Transparency: - Funds provide investors with updated information pertaining to the markets and the schemes. All material facts are disclosed to investors as required by the regulator. Flexibility: - Investors also benefit from the convenience and flexibility offered by Mutual Funds. Investors can switch their holdings from a debt scheme to an equity scheme and vice-versa. Option of systematic (at regular intervals) investment and withdrawal is also offered to the investors in most open-end schemes. Safety: - Mutual Fund industry is part of a well-regulated investment environment where the interests of the investors are protected by the regulator. All funds are registered with SEBI and complete transparency is forced.


Cost control not in the hands of Investors: - Investor has to pay investment management fees and fund distribution costs as a percentage of the value of his investments (as long as he holds the units), irrespective of the performance of the fund. No customized portfolio: - The portfolio of securities in which a fund invests is a decision taken by the fund manager. Investors have no right to interfere in the decision making process of a fund manager, which some investors find as a constraint in achieving their financial objectives. Difficulty in selecting a suitable fund scheme: - Many investors find it difficult to select one option from the plethora of funds/schemes/plans available. For this, they may have to take advice from financial planners in order to invest in the right fund to achieve their objectives.

Load structure:-

Load Funds Mutual Funds incur various expenses on marketing, distribution, advertising, portfolio churning, fund manager's salary etc. Many funds recover these expenses from the investors in the form of load. These funds are known as Load Funds. A load fund may impose following types of loads on the investors:
1. Entry Load - Also known as Front-end load, it refers to the load

charged to an investor at the time of his entry into a scheme. Entry load is deducted from the investor's contribution amount to the fund.

2. Exit Load - Also known as Back-end load, these charges are

imposed on an investor when he redeems his units (exits from the scheme). Exit load is deducted from the redemption proceeds to an outgoing investor. 3. Deferred Load - Deferred load is charged to the scheme over a period of time. 4. Contingent Deferred Sales Charge (CDSC) - In some schemes, the percentage of exit load reduces as the investor stays longer with the fund. This type of load is known as Contingent Deferred Sales Charge. No-load Funds All those funds that do not charge any of the above mentioned loads are known as No-load Funds.

Tax exemption:
Tax-exempt Funds Funds that invest in securities free from tax are known as Taxexempt Funds. All open-end equity oriented funds are exempt from distribution tax (tax for distributing income to investors). Long term capital gains and dividend income in the hands of investors are taxfree. Non-Tax-exempt Funds Funds that invest in taxable securities are known as Non-Tax-exempt Funds. In India, all funds, except open-end equity oriented funds are liable to pay tax on distribution income. Profits arising out of sale of units by an investor within 12 months of purchase are categorized as short-term capital gains, which are taxable. Sale of units of an equity oriented fund is subject to Securities Transaction Tax (STT). STT is deducted from the redemption proceeds to an investor.

Risk Hierarchy of Different Mutual Funds:-

Thus, different mutual fund schemes are exposed to different levels of risk and investors should know the level of risks associated with these schemes before investing. The graphical representation hereunder provides a clearer picture of the relationship between mutual funds and levels of risk associated with these funds:

Literature on mutual fund performance evaluation is enormous. A few research studies that have influenced the preparation of this paper substantially are discussed in this section. Sharpe, William F. (1966) suggested a measure for the evaluation of portfolio performance. Drawing on results obtained in the field of portfolio analysis, economist Jack L. Treynor has suggested a new predictor of mutual fund performance, one that differs from virtually all those used previously by incorporating the volatility of a fund's return in a simple yet meaningful manner. Michael C. Jensen (1967) derived a risk-adjusted measure of portfolio performance (Jensen’s alpha) that estimates how much a manager’s forecasting ability contributes to fund’s returns. As indicated by Statman (2000), the e SDAR of a fund portfolio is the excess return of the portfolio over the return of the benchmark index, where the portfolio is leveraged to have the benchmark index’s standard deviation.

S.Narayan Rao, evaluated performance of Indian mutual funds in a bear market through relative performance index, riskreturn analysis, Treynor’s ratio, Sharpe’s ratio, Sharpe’s measure , Jensen’s measure, and Fama’s measure. The study used 269 open-ended schemes (out of total schemes of 433) for computing relative performance index. Then after excluding funds whose returns are less than risk-free returns, 58 schemes are finally used for further analysis. The results of performance measures suggest that most of mutual fund schemes in the sample of 58 were able to satisfy investor’s expectations by giving excess returns over expected returns based on both premium for systematic risk and total risk. Bijan Roy, et. al., conducted an empirical study on conditional performance of Indian mutual funds. This paper uses a technique called conditional performance evaluation on a sample of eighty-nine Indian mutual fund schemes .This paper measures the performance of various mutual funds with both unconditional and conditional form of CAPM, Treynor- Mazuy model and Henriksson-Merton model. The effect of incorporating lagged information variables into the evaluation of mutual fund managers’ performance is examined in the Indian context. The results suggest that the use of conditioning lagged information variables improves the performance of mutual fund schemes, causing alphas to shift towards right and reducing the number of negative timing coefficients. Mishra, et al., (2002) measured mutual fund performance using lower partial moment. In this paper, measures of evaluating portfolio performance based on lower partial moment are developed. Risk from the lower partial

moment is measured by taking into account only those states in which return is below a pre-specified “target rate” like risk-free rate. Kshama Fernandes (2003) evaluated index fund implementation in India. In this paper, tracking error of index funds in India is measured .The consistency and level of tracking errors obtained by some well-run index fund suggests that it is possible to attain low levels of tracking error under Indian conditions. At the same time, there do seem to be periods where certain index funds appear to depart from the discipline of indexation. K. Pendaraki et al. studied construction of mutual fund portfolios, developed a multi-criteria methodology and applied it to the Greek market of equity mutual funds. The methodology is based on the combination of discrete and continuous multi-criteria decision aid methods for mutual fund selection and composition. UTADIS multi-criteria decision aid method is employed in order to develop mutual fund’s performance models. Goal programming model is employed to determine proportion of selected mutual funds in the final portfolios.

 To study the investors intention with regard to the products in

mutual funds and their features.  To study awareness level of customers.  To study the preference and satisfaction level of investors.  To apprehend mutual funds movement in the market.  To analyze how it benefited to investors. With the awareness that is increasing day by day regarding investing in secondary market and speculation, the comfort and flexibility the customers seeking, there is a definite requirement to study. In the fast growing competitive market scenario it is always required to have an idea of changes that are taking place in the market from time to time. Without which one can’t serve their customers properly.


1. 2.

To enhance our knowledge about the subject. Evaluate Perception towards risk involved in mutual funds in comparison to other financial avenues.









customers. 4. To have a vivid picture of major players in Mutual Fund Industry in India. 5. To study how the promotional activities of Mutual Fund products in India. 6. To study the pattern of consumer behavior within the available investment options and to test awareness among the consumer about the various mutual fund houses.


In today's complex financial environment, investors have unique needs, which are derived from their risk appetite and financial goals. Mutual manage funds the (customized investments portfolios) recognize to this, and professionally achieve specific

investment objectives, and not to forget, relieving the investors from the day-to-day hassles which investment require.  It is offers professional management of equity and debt diversified investment of the investor with an aim to deliver consistent return with an eye on risk.
 Identify the key sectorial stocks in each portfolio.

 To look out for new prospective customers who are willing to invest in Mutual Funds of Franklin Templeton, Visakhapatnam.  To find out the Franklin Templeton Investments’, Mutual Funds effectiveness in the current market situation. It also covers the scenario of the Investment Philosophy of a Fund Manager.

Primary data: - Employees of Franklin Templeton India Pvt Ltd, Visakhapatnam, & customers of Franklin Templeton, and other investor out of Franklin Templeton (by personally in touch with them, and by asking queries to them). Methods: - Personal interaction. Secondary data: Web site of Franklin Templeton India, brochures, textbooks and other web sites etc….. Mainly the data was collected by interacting with people working at various levels in Franklin Templeton and outside investors and websites.

Sample Method Sample Size Sources of Data : : Non-Probability Sampling 100

 Primary Data  Secondary Data

: :

Structured Non-Disguised Questionnaire Reference from distributors.

The whole study is based upon primary and secondary data. Therefore, information has been collected from interacting with different investors and from various magazines, journals, websites, and bulletins.

The study has been presented in the organized structure or the format which has been provided by the respective authority. In the first chapter under the theoretical framework the concept of finance has been described in detail with its meaning, definition, evolution and the various modern and the traditional approaches in the field of finance. In the column of topic related concepts there was a detailed description about the topic of study, which is “study on customer attitude, preference and satisfaction level towards mutual fund investment”. In its context it was detailed allot the process and the importance of customer satisfaction in the organization as well as industry. In the column of review of literature the relation and the importance of the customer satisfaction with the company, investor’s value, etc has been presented with the reviews of the various scholars in the field of finance. There was a clear description about the importance and the scope of study and the main objectives for the purpose of conducting the study were made clear. The research design adopted with different methods and tables and there was clear presentation of the limitations of the study.

In chapter three the overview of the whole industry at global level and also at the country level has been mentioned with actual facts which were done same in the case of the company profile. Once the topic profile in the organisation was made clear the study was supported with clear analysis of data and the fair presentation of the findings, suggestion and the conclusion at the end of the details presented for the study.

 The study is limited to Visakhapatnam city only.
 The time constraint was one of the major problems.  The study is limited to the different schemes available under

the mutual funds selected.  All the customers are online so only a few customers were in contact.  As all the information is given by the customers it may be biased.  Most of the customers were not ready to reveal the data about their investments.  Most of clients unaware of these options so that they didn’t responded well.
 The lack of information sources for the analysis part.

The capital markets perform an important function in mobilization of resources liquidity of the stock markets is an important factor effecting growth. Many profitable projects require long term finance; however investors do not relinquish their savings for a long time. Capital market is a group of interrelated markets in which capital is raised in financial form, is lent and borrowed (or) raised in a varying time periods (such as short term and long term). In a developing economy, the business of capital market is the movement of capital to the point of highest yield. A liquid stock market ensures a quick exit without incurring heavy losses (or) costs. Stock market is a vehicle through which long term finance is characterized for the various needs of industry, commerce, government and local authorities. Thus development of financial markets is necessary for creating conductive climate for investment and economic growth. The tone of capital market largely depends on the economy of the country and therefore, depends on the









performances of the industry on the other. Among other factors that would influence the tone of the capital and stock market are the monsoon, the agriculture, the industry growth and in particular the performance of the corporate sector, as they too have a controlling effect on the economy of the country. In particular the performance of the corporate sector, as they too have a controlling effect on the economy of the country. In particular the government policy, the psychological expectation and host of other factors play a very prominent role in influencing the capital markets.

The capital market in India can be categorized into two types:  Organized  Unorganized
The funds for long term capital come from individual investors, corporate savings, government savings, foreign investments, banks, financial institutions, investments trusts, Life Insurance Corporation and international financial agencies, industry, government and semi government institutions are the potential users in the organized sector itself. Since the supply of funds for unorganized sector falls short of demand, the interest rates are kept high. The economic progress of a country is largely influenced by the availability of savings for investment and hence there is a need for the mobilization of the savings for investment and hence there is a need for the mobilization of savings for investment and hence on a massive scale. Indigenous bankers

in town and money lenders in rural areas supply long term finance in the UN organized sector. There is no link between the organized and unorganized sector (or) within the unorganized sector itself. There is a need for the mobilization savings on a massive scale. The economic progress of a country is largely influenced by the availability of savings for investment and hence there is need for the mobilization of savings for investment and hence on a massive scale. Indigenous bankers in town and money lenders in rural areas supply long term finance in the unorganized sector. There is no link between the organized and unorganized sector (or) within the unorganized sector itself. There is a need for the mobilization savings on a massive scale. In developing countries like India, there is a great set back in mobilization process due to various reasons. The attitude of the public; their affiliation to traditional investment in land and property, bullions and hoardings and above all the risk of uncertainty are some of the reasons. The fiscal commission (1949-50) recognized the fact that in India there is an acute of long term capital for industrial ventures. But it was not until 1954-55 that the central board of directors of the reserve bank permitted established business house to raise their new capital by issue of debentures at comparatively high rate of interest. Since the capital market is a place where the private savings are kept for a very long period, it is highly necessary to protect the interests of these investors, if the capital market has to grow.

To safe guard the investor’s interest, government has to enacted laws such as:
 The securities act , 1938 ( together with the life insurance corporation act 1956 )  The capital issues (control and regulation act, 1943).  The banking companies act, 1949.  The provident fund act and the rules, 1957.  The Indian companies act, 1956.  The deposit insurance scheme, 1960.  The monopolies and restrictive trade practices act, 1969. A new era in the capital market in India was ushered in July, 1991 with the starting of a new process of financial and economic deregulation. Beginning With the devaluation of rupee by about 20% in July, 1991, industrial policy was totally reshaped to dispense with licensing of all industries except 18 scheduled industrial groups. Further, removal MRPT limit on assets of Companies, dilution of FERA (Foreign Exchange Regulation Act). And foreign trade liberalization etc, were some of the other reforms. Fiscal Policy was rationalized to reduce the central budget deficit and public Sector under takings were freed from government controls by professionalizing their management , giving greater autonomy to them and by disinvestment of their shares in favor of the public.


The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992. PREAMBLE The Preamble of the Securities and Exchange Board of India describes the basic functions of the Securities and Exchange Board of India as “… protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto”

The 'BSE SENSEX' is a value-weighted index composed of 30 stocks and was started on January 1, 1986. The Sensex is regarded as the pulse of the domestic stock markets in India. It consists of the 30 largest and most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange. These companies account for around fifty per cent of the market capitalization of the BSE. The base value of the Sensex is 100 on April 1, 1979, and the base year of BSESENSEX is 1978-79. A governing board comprising of 9 elected directors, 2 SEBI nominees, 7 public representatives and an executive director is the apex body, which decides the policies and regulates the affairs of the exchange.

The BSE SENSEX consists of the following companies:

Bajaj Auto Limited, Bharti Airtel Ltd., Bharat Heavy Electricals Ltd., Cipla Ltd., DLF Ltd., HDFC, HDFC Bank Ltd., Hero Honda Motors Ltd., Hindalco Industries Ltd., Hindustan Unilever Ltd., ICICI Bank Ltd., Infosys Technologies Ltd., ITC Ltd., Jaiprakash Associates Ltd., Jindal Steel & Power Ltd., Larsen & Toubro Ltd., Mahindra & Mahindra Ltd., Maruti Suzuki India Ltd., NTPC Ltd., ONGC Ltd., Reliance Industries Ltd., Reliance Communications Ltd., Reliance Infrastructure Ltd., State Bank of India, Sterlite Industries (India) Ltd., Tata Motors Ltd., Tata Power Company Ltd., Tata Steel Ltd., Tata Consultancy Services Ltd., Wipro Ltd. At regular intervals, the Bombay Stock Exchange (BSE) authorities review and modify its composition to be sure it reflects current market conditions. The index is calculated based on a free float capitalization method; a variation of the market cap method. Instead of using a company's outstanding shares it uses its float, or shares that are readily available for trading. The free-float method, therefore, does not include restricted stocks, such as those held by promoters, government and strategic investors. Initially, the index was calculated based on the ‘full market capitalization’ method. However this was shifted to the free float method with effect from September 1, 2003. Globally, the free float market capitalization is regarded as the industry best practice. As per free float capitalization methodology, the level of index at any point of time reflects the free float market value of 30 component stocks relative to a base period. The Market Capitalization of a company is determined by multiplying the

price of its stock by the number of shares issued by the company. This Market capitalization is multiplied by a free float factor to determine the free float market capitalization. Free float factor is also referred as adjustment factor. Free float factor represent the percentage of shares that are readily available for trading. The Calculation of Sensex involves dividing the free float market capitalization of 30 companies in the index by a number called Index divisor. The Divisor is the only link to original base period value of the Sensex. It keeps the index comparable over time and is the adjustment point for all Index adjustments arising out of corporate actions, replacement of scrips, etc. The index has increased by over ten times from June 1990 to the present. Using information from April 1979 onwards, the long-run rate of return on the BSE Sensex works out to be 18.6% per annum, which translates to roughly 9% per annum after compensating for inflation.

The NSE was incorporated in Now 1992 with an equity capital of Rs 25 crore. The International securities consultancy (ISC) of Hong Kong has helped in setting up NSE. ISE has prepared the detailed business plans and installation of hardware and software systems. The promotions for NSE were financial institutions, insurances companies, banks and SEBI capital market ltd, Infrastructure leasing and financial services ltd and stock holding corporation ltd.











professionalisation of the capital market as well as provide nation wide securities trading facilities to investors. NSE is not an exchange in the traditional sense where brokers own and manage the exchange. A two tier administrative set up involving a company board and a governing aboard of the exchange is envisaged. NSE is a national market for shares PSU bonds, debentures and government securities since infrastructure and trading facilities are provided. NSE-NIFTY: The NSE on April 22, 1996 launched a new equity Index. The new index, which replaces the existing NSE-100 index, is expected to serve as an appropriate Index for the new segment of futures and options. “Nifty” means National Index for Fifty Stocks. The NSE-50 comprises 50 companies that represent 20 broad Industry groups with an aggregate market capitalization of around Rs. 1,70,000 crs. All companies included in the Index have a market capitalization in excess of Rs 500 crs each and should have traded for 85% of trading days at an impact cost of less than 1.5%. The base period for the index is the close of prices on Nov 3, 1995, which makes one year of completion of operation of NSE’s capital market segment. The base value of the Index has been set at 1000.

Franklin Templeton Investments has grown from being recognized as one of the best small companies in America to being considered a premier global investment management organization. We offer clients a valuable perspective shaped by

our six decades of experience, investment expertise and growing global reach. Franklin Templeton GLOBAL
Franklin Resources, Inc. is a global investment management organization known as Franklin Templeton Investments. We have an extensive global presence, including offices in over 30 countries and clients in more than 150. Our common stock is listed on the New York Stock Exchange under the ticker symbol BEN and is included in the Standard & Poor's 500®Index. As of December 31, 2010, we manage over $670 billion in investment vehicles for individuals, institutions, pension plans, trusts, partnerships and other clients.

 A pure investment management organization  Multi-manager structure encompassing well-known brands across multiple asset classes
 94% of U.S.-registered fund assets ranked in top two Lipper

quartiles for 10-year period ended December 31, 20101

Extensive Global Presence
 A pioneer in global investing.  Clients in 150+ countries.  22 countries/regions with over U.S. $1 billion in AUM.  Largest cross-border fund manager.

 More than 500 investment professionals who speak over 25


Financial Strength
 Diversified by investment objective, client type, and geographical region  Strong balance sheet  Excellent credit ratings

Values-Based Culture
 Put clients first  Build relationships  Work with integrity

Franklin Templeton INDIA
Franklin Templeton's association with India dates back to more t han a decade as an investor. As part of the group's major thrust on investing in markets around the world, the India office was set up in 1996 as Templeton Asset Management India Pvt. Limited. It flagged off the mutual fund business with the launch of Templeton India Growth Fund in September 1996, and since then the business has grown at a steady pace.

A Long term commitment:
Since starting its operations in India, Franklin Templeton has invested a considerable amount of time, effort and resources towards investor and distributor education, the belief being - to be successful in the long term, the fundamentals need to be corrected, at whatever cost! This has resulted in various advertising campaigns aimed at educating investors, participation in seminars and distributor training programs. Franklin Templeton has played a

pivotal role in steering the industry to its current stage, and as long term players, we continue to strive to achieve the objective of 'making mutual funds an investment of choice' for both individual and institutional investors. In July 2002, Franklin Templeton India acquired Pioneer ITI, another leading fund house in India to create an organization with rich investment experience over market cycles, one of the most comprehensive product portfolios, footprint across the country and an in-house shareholder servicing function. The huge synergies that existed in the two organizations have helped the business grow at a rapid pace, catapulting the company to among the top two fund houses in India.

Our Vision
To be the premier global investment management organization by offering high quality investment solutions, providing outstanding service and attracting, motivating and retaining talented individuals.

Investment philosophy
Our investment philosophy that follows a disciplined approach to investing with a strong focus towards process orientation is the common thread running through all our schemes. The key guiding principle to our investment philosophy is - maximize the riskadjusted returns for our investors in the respective asset classes, and create wealth for them over the long-term. We have successfully demonstrated the ability to achieve this in the past, and are confident that our process-oriented investment approach will help us sustain the same in the years to come.


While broad economy and sector trends serve as a broad guideline, Franklin Templeton portfolio managers are essentially 'bottom-up' investors, focusing more on individual stocks and their potential to deliver long term capital appreciation. While quantitative analysis using proprietary research model serves as a first stage filter, the research team and portfolio managers speak with key management and observe operations onsite to get a meaningful insight into a company's ability to translate vision into reality.

The overall objective is to minimize both liquidity and credit risk. Our fixed income team looks to arrive at a general maturity/duration range for the portfolio in relation to the market based on its interest rate outlook, which is arrived after a rigorous and close monitoring of various macro variables. The shifts within this range are then determined by short term cyclical trends in the economy. They look to manage interest rate risk across different asset class and duration buckets, in order to optimise risk-adjusted returns. All the investment options are thoroughly analysed to ensure that credit risk is kept at the minimum level. Any major shifts in portfolio strategy are based on long-term trends, as opposed to short-term aberrations in interest rates.

Name Charles B. Johnson Rupert H. Johnson, Jr. Gregory E. Johnson Vijay C. Advani Designation Chairman of the Board Vice Chairman Chief Executive Officer President

Executive Vice President - Global Advisory Services Jennifer M. Executive Vice President Chief Operating Johnson Officer Kenneth A. Lewis Executive Vice President Chief Financial Officer John M. Lusk Executive Vice President - Investment Management Craig S. Tyle Executive Vice President General Counsel William Y. Yun Executive Vice President - Alternative Strategies



Name and address Franklin Templeton Asset management India pvt ltd. 204, First floor, Eswar plaza, Dwarakanagar. Bata Showroom Visakhapatnam. -16. Name and designation: Suresh Kumar Sela (Branch Manager)

No of Persons employed: Two Name of the industry: Mutual Funds Whether seasonal: No Date of Opening: 30th Aug 2002. Details of Head Offices/branches: Franklin Templeton Asset management India pvt ltd Level 4, wockhardt towers, Bandra-Kurla complex, Bandra East, Mumbai 400051. No of employees: 424 Person responsible to receive the notice on behalf of employees under payment of gratuity act 1972 and the rules framed there under. Authorized person Karan Kapadia VP & Regional sales head.

In the year 1940:
The company was founded in 1947 in New York by Rupert H. Johnson, Sr., who ran a successful retail brokerage firm from an office on Wall Street. He named the company for U.S. founding father Benjamin Franklin because Franklin epitomized the ideas of frugality and prudence when it came to saving and investing. The company's first line of mutual funds, Franklin Custodian Funds, was a series of conservatively managed equity and bond funds designed to appeal to most investors.

In the year 1950:
After Rupert Sr. retired, his son, Charles B. Johnson (Charlie), took over as president and chief executive officer in 1957 at age 24. There were only a handful of employees at that time and the funds had total assets under management of $2.5 million. Franklin was swimming against the tide because insurance companies dominated the middle class investing markets, but Charlie was convinced that he had a good story to tell.

In the year 1960:
By the early 1960s Charlie and his team's persistence was paying off and the company was growing albeit slowly. It was a struggle to keep up with the day-to-day demands of the business and Charlie continued to wear many hats—mutual fund manager, wholesaler accountant. Rupert Johnson, Jr., Charlie's brother, joined the company in 1965 and also took on multiple roles.

In the year 1970:
Franklin went public in 1971, which gave Charlie and team the capital needed to grow the business and position it for the future. In 1973, the company acquired Winfield & Company, a San Mateo, California-based investment firm, and moved Franklin's offices from New York to California. The combined organization had close to $250 million made in it assets Franklin's under first management billion-dollar and fund approximately and launched 60 the employees. In 1979, Franklin Money Fund began a growth surge that company's tremendous asset growth in the 1980s. In the year 1980: Starting in 1980, the company's total assets under management doubled (or nearly doubled) every year for the next six years. The company's stock began trading on the New York Stock Exchange in 1986 under the ticker symbol "BEN". In the same year, the company

opened its first office outside North America in Taiwan. In 1988, Franklin acquired L.F. Rothschild Fund Management Company. Assets under management for Franklin grew from just over $2 billion in 1982 to more than $40 billion in 1989 (the crash of 1987 had little impact on Franklin's income and bond funds). Not one to rest on their laurels, management was concerned about Franklin's heavy emphasis on fixed income investments that had become the company's bread and butter.

In the year 1990:
Strategic acquisitions in the 1990s helped Franklin diversify its investment management capabilities beyond fixed income and also expand its global footprint throughout Europe and Asia. In 1992, after striking a deal with famed global investor Sir John Templeton for acquisition of Templeton, Galbraith & Hansberger Ltd., Charlie was named Fund Leader of the Year for spearheading what was then the largest merger of an independent mutual fund company in history. Templeton gave the company a strong portfolio of international equity funds as well as the expertise of emerging markets guru Dr. Mark Mobius, who currently leads a team of emerging markets analysts and manages emerging markets portfolios. Dr. Mobius has spent more than 30 years working in emerging markets all over the world. Then in 1996, in an effort to broaden its line of domestic equity products, Franklin Templeton bought Heine Securities Corporation, investment advisor to Mutual Series Fund, Inc., from Wall Street icon Michael Price.

In the year 2000:
Several more key acquisitions solidified the company's position as a premier global investment management organization: Bissett in

2000, Fiduciary Trust in 2001 and Darby in 2003. In 2005, Gregory E. Johnson (Greg), Charlie's son, became chief executive officer, assuming overall responsibility for leading Franklin Templeton Investments. Greg had grown up in the business and worked his way through the organization beginning on the trading desk at age 24 in 1985.

Fundamental Approach
Our investment decisions are guided more by what we believe in, less by what the market thinks. That is the reason once we buy into a stock, or take a maturity position in a debt portfolio based on our fundamental research and analysis, we stick to our position without paying heed to market rumours and whisper estimates. We believe that while technical can rule the roost in the short term, it is the fundamentals that prove rewarding over time.

Long Term Orientation
Franklin Templeton's portfolio managers are strong believers in consistently delivering good performance. The key word is consistency. We believe that it is not important to be top performer at any time and we attach more importance to being among the top quartile in the peer group consistently, and this requires taking a long-term view, even at the cost of temporary underperformance.

Team Approach
While individual portfolio managers are the ultimate decision makers for the scheme they manage, the belief is that working together can achieve greater results than acting alone. That is why every stock that is researched by the analysts is discussed intensively at regular investment team meetings, and the analysis is available to all

investment team members on a common platform. Moreover, the high degree of interaction between investment team members across the globe helps share and learn from each other's experience and expertise. The regular awards and top ratings accorded to Franklin Templeton schemes are recognition of their consistently superior performance across asset classes, and through market and economic cycles. They also reflect Franklin Templeton's long cherished values of choosing the long-term, disciplined and team approach to managing its funds and business.

Highlights of the Quarter
 Record assets under management of $670.7 billion and longterm sales of $54.9 billion.  Long-term net new flows of $3.4 billion, net of the previously announced advisory account redemption of $12.0 billion.
 Tax-free fixed-income funds experienced net outflows of $2.0

billion, but almost half of that was exchanged into other Franklin Templeton funds.  Announced a new strategic relationship with Pelagos Capital Management and the acquisition of Rensburg Fund Management, a U.K. equity manager.

Earning per share

These Corporate Governance Guidelines (the “Guidelines”) have been adopted by the Board of Directors (the “Board”) of Franklin Resources, Inc. (the “Company” or “Corporation”) in connection with its oversight of the Company’s management and business affairs.  Independence of Directors: A majority of directors must be “independent” directors in accordance with the corporate governance listing standards.


 Director

Qualifications and Selection: The Corporate Governance Committee of the Board is responsible for establishing a policy setting forth the specific, minimum qualifications that the Corporate Governance Committee believes must be met by a nominee recommended by the Corporate Governance Committee for a position on the Board. term limits for its members. The Board recognizes the value of continuity of directors who have experience with the Company and who have gained over a period of time a level of understanding about the Company and its operations

 Term Limits: The Board does not believe that it should establish

 Meetings and Preparation: Directors are expected to regularly

attend Board meetings and meetings of committees on which they serve, to spend the time needed in preparation for such meetings and to meet as frequently as they deem necessary to properly discharge their responsibilities.
 Meeting

Agendas: The Chairman of the Board and the Corporate Secretary will establish and disseminate the agenda for each Board meeting. Each Board member is free to suggest the inclusion of items on the agenda. Each Board member is free to raise at any Board meeting subjects that are not on the agenda for that meeting. Performance Evaluation: The Board, through its delegation of oversight to the Corporate Governance Committee, shall annually review its own performance in such manner as it deems appropriate to determine whether the Board and its committees are functioning effectively. Governance review and determine recommend approval. Committee, as appropriate, shall periodically reassess the adequacy of these Guidelines to whether any changes are appropriate and to the Board any such changes for the Board’s

 Annual

 Review of Corporate Governance Guidelines: The Corporate

 Equity Funds

• Open-end diversified • Open-end sector  Fixed Income Funds • • Open-end income/liquid Closed-end

 Hybrid Funds • • • Open-end balanced Open-end fund of funds Closed-end

 Investment Styles • What are growth and value styles?

EQUITY FUNDS Open-end diversified
Fund FIOP Product Positioning Takes concentrated stock/sector exposure based on four themes. Invests in companies/ sectors with high growth rate. Invests in small and mid cap companies Invests in mid and small cap stocks Invests in companies benefiting from the building blocks of the economy Style Blend, bottom up Growth combination of top down and bottom up. (Micro and macro analysis) Blend, bottom up Blend, bottom up Blend, bottom up with a top down overlay Investment horizon 3-5 years or more


3-5 years or more


3-5 years or more 3-5 years or more 3-5 years or more







Invests in companies across the market cap range Invests in companies across sectors and market cap range, offering tax benefits under Sec 80 C. Primarily a large cap fund with some allocation to small/mid cap stocks that have high long-term potential. Passively managed index fund Invest in large cap stocks Invests predominantly in large cap stocks – a value fund Focuses on Indian and emerging market stocks – a value fund taking into account dividend yield of stocks Invests in Asian Companies/ sectors with long term potential across the market cap range.

Blend, bottom up Blend, bottom up

3-5 years or more

3-5 years or more

Blend, bottom up

3-5 years or more

Passive, indexing Blend, bottom up Value, bottom up Value, bottom up

3-5 years or more 3-5 years or more 3-5 years or more

3-5 years or more

Growth combination top down and bottom up. Micro and macro within countries stock.

3-5 years or more

Open-end Sector
FIF Invests in companies in the information technology sector. Blend, bottom up 3-5 years or more

Equity funds
Templeton India Growth Fund (TIGF) Franklin India Prima plus (FIPP) Franklin India Prima fund (FIPF) Franklin India Flexi Cap Fund (FIFCF) Franklin India High Growth Companies Fund (FIHGCH). Franklin Asian Equity Fund (FAEF) Franklin India Opportunity Fund (FIOF) Templeton India Equity Income Fund (TIEIF) Franklin Build India Fund (FBIF) Franklin India Tax-shield (FIT) Franklin India Index Fund (FIIF) Franklin InfoTech Fund (FIF)

FIXED INCOME FUNDS Open-end income/liquid
Fund TGSF Product Positioning Invests primarily in Indian govt securities with different plans. A long bond fund investing in quality fixed income instruments across segments Primarily a corporate bond fund with medium term portfolio duration Focused on high accrual paper towards the short end of the curve including PTCs Invests in short term corporate bonds including PTCs Invests in a mix of money market and short term debt instrument Invest in a mix of floating and fixed income securities Invests in short term debt and money market securities Invests in money market and short term investments Invests in money market securities Style Composite plan/ PF Plans/ LT Plan Treasury 3 to 6 months 1 to 2 years Investment horizon Composite plan/ PF Plans/ LT Plan high Treasury plans: Low to moderate Moderate to high



1 to 2 years



18 months and above



9 to 18 months



3 to 6 months



1 to 6 months Upto 3 months

Moderate Low


3 days to 3 months 1 month

Low Low

TFHF Invests in high quality fixed income securities in line with the portfolio 3 months to 5 years Varies/low due to buy-hold strategy.


Income & Liquid
Templeton India Income Fund (TIIF) Templeton India Income Builder Account (TIIBA) Templeton India Income Opportunity Fund (TIIOF) FT India Monthly Income Plan (FTIMIP) Templeton India Government Securities Fund (TGSF) Templeton Floating Rate Income Fund (TFIF) Templeton India Short Term Income Plan (TISTIP) Templeton India Ultra-Short Bond Fund (TIUBF) Templeton India Treasury Management Account (TITMA) Templeton India Low Duration Fund (TILDF)

HYBRID FUNDS Open-end balanced
Fund FTIBF Product Positioning Invests both in stocks and fixed income instruments offering a balanced exposure to the asset classes Ideal avenue for investing for children’s future Education Plan: Invests in equities and in debt securities Invests in equities (Upto 40%) and the balance in high quality fixed income instruments – a retirement product offering tax benefits with a lock-in An MIP investing predominantly in debt instrument with a marginal exposure to equities. (Equity exposure: upto 20%) Style Balanced Equity: Blend and bottom up Fixed Income: Similar to long bond fund Balanced Equity: Blend and bottom up Fixed Income: Similar to long bond fund Balanced Equity: Blend and bottom up Fixed Income: Similar to long bond fund Balanced Equity: Blend and bottom up Fixed Income: Similar to short bond fund Investment horizon 3 to 5 years or more



At least 4 years and until the child turns 18 years of age/ Gift plan: Moderate to high. Education plan: Low to moderate At least 3 years and until the age of 58 years/ Moderate to High


1 to 3 years/ Moderate

Open-end fund of funds
Fund FTDPEF Product Positioning A Fund of fund offering tactical allocation between an equity and debt fund, based on (PE Ratio) A fund of fund offering life stage solutions with different plans of varying asset allocation. Product Positioning Invests in high quality fixed income sec in line with the portfolio duration and provides marginal equity exposure upto 30% Invests in mix of debt and equity Style Tactical Allocation Investment horizon 3 to 5 years/ High


Strategic/Tactica Varies as per the l Allocation plan/ Moderate to high

Fund FTFTF Style Balanced, bottom up approach Investment horizon Varies/ Moderate to low


Balanced, bottom up approach

Varies/ Moderate to low

FT India Dynamic PE Ratio Fund of Funds (FTDPEF) FT India Life Stage Fund of Funds (FTLF) FT India Balanced Fund (FTIBF) Templeton India Pension Plan (TIPP)

INVESTMENT STYLES What are Growth and Value styles?
As per MSCI, the growth investment style has the following characteristics • Long-term forward earnings per share (EPS) growth rate • Short-term forward EPS growth rate • Current Internal growth rate • Long-term historical EPS growth trend

• Long-term historical sales per share growth trend In other words, companies with above average revenue growth/ potential and ROE The value investment style has the following characteristics• Book value to price ratio • 12-month forward earnings to price ratio • Dividend yield In other words, out-of-favor stocks/sectors with good fundamentals, turn-around opportunities and undervalued.

Risk factors: All investments in mutual funds and securities are
subjective to market risks and the NAV of the scheme may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. There can be no assurance that the scheme’s investment objectives will be achieved.

What is Franklin India Bluechip Fund (FIBCF)? FIBCF is an open-end diversified equity fund that seeks to achieve capital appreciation through investments in large-cap companies. It was launched in 1993 as a 3 years closed end fund and was converted into an open end fund from January 1997, with declaration of a 20% dividend. In the 90's it used to have a graded load structure going upto 6%. The name Bluechip has its origin in poker from US blue chips typically had the highest value in the game poker and have come to represent stocks f companies that are large/mature and dominate their respective industries. Thus the term blue chip refers to stocks with large market capitalization (established companies).

What are large cap companies and how have the stocks performed? The phrase "large cap" is in reference to the S&P CNX 500 index. This provides a dynamic and realistic picture of the capitalization ranges, given the growing Indian markets. Any stock whose market cap is higher than the 100th stock in S&P CNX 500 will be considered a

large cap stock and the latest break up is given below. Large cap companies have a relatively stable business model and scale of operations and ability to attract best of talents helps them sustain their growth. Stock of such companies are well researched, constantly in demand and highly liquid. Typically, the scale and size of these companies makes them less prone to external shocks, usually demonstrating better resilience during volatile periods. Some well known names in the large cap space in India include Reliance Industries, Hindustan Lever, SBI and Infosys. History suggests that large cap stocks provides stable and consistent returns and typically do relatively well during down turns or volatile environment.

What is the investment strategy of FIBCF? The fund follows a bottom-up approach to stock selection based on fundamental research with a medium to long term perspective and ignores momentum stocks.

The companies




seeks to invest in (A) are well managed: (B) generate high ROCE and (C) demonstrate the ability to deliver sustainable growth in earnings. Our approach has been to construct a well diversified portfolio of large cap stocks with a medium to long term perspective. We adopt a buy-hold strategy and our average holding period tends to be around 24 months, but we can also take short term view on opportunities. We continue to hold on to stocks that fall out of favor if we believe that the fundamentals are still strong. Though growth stocks from a large components of our portfolio, we have also tried to capitalize on emerging opportunities in value / cyclical stocks. The scheme generally invests in around 40 stocks thereby maintaining adequate diversification.

Does in invest only in large cap stocks?

Depending on fundamental views we might sometimes look at mid cap companies with a market capitalization close to that of the large cap ones, but the primary exposure is towards large cap stocks. Since inception, it has always remained true to its mandate of investing in large cap stocks irrespective of the market conditions. This sets the fund apart from other funds, which may have changed their investment strategies to adopt market conditions.




consistency helps the investors understand the risks they are undertaking and the possible performance characteristics of the fund. If a fund doesn’t stay true to its investment style, investors will not have an idea of the type of risks they are undertaking.

How has the fund performed over the years? As one of the oldest equity funds in the country, it has exhibited a consistent track record over the past 17 years. FIBCF has

consistently out-performed its benchmark BSE SENSEX across time horizons. Since inception, FIBCF has successfully weathered various market cycles. The table shows its performance against its benchmark BSE SENSEX in various bull and bear phases.

What was its

strategy during the sharp rally upto 2008 and ensuring global financial crisis? Stringent screening on various quantitative and qualitative parameters had led us to limit exposure to momentum based stocks / sector (characterized by high volatility, valuation and governance risks). We had largely stayed away from metals, power and real estate stocks, despite the momentum building up in many stocks in these sectors. This impacted the relative performance in 2007. We however maintained exposure to growth stocks through companies in sectors such as telecom, financial services, capital goods etc. On the other hand, we were cognizant of the strong

domestic drivers for the Indian economy and hence had exposure to defensive such as FMCG, which were undervalued. This mix of growth/value exposure and avoiding overhead stocks helped our funds deliver a relatively good performance during 2008/09. We took advantage of the sharp decline in valuations of our picks in the capital goods and banking sectors and thereby increased our exposure to this space. This also added to out performance in 2009. What is the current portfolio strategy? Our strategy remains focused on the medium to long term opportunities and while this might impact relative performance over the near term, the fund’s track record over market cycles points towards the benefits of the approach. Companies that can piggyback on the domestic consumption and investment themes are good opportunities from a medium to long-term perspective. They will take advantage of the structural transition underway in India, with growing income levels and increased infrastructure/capex spending by the government Banks (17.91%), Software (9.64%), and Industrial Capital goods (8.38%). • India remains underserved in terms of financial services, but the strong growth in personal incomes has led to increased demand. Given the low penetration of banking and financial services in India, we believe companies in this sector have huge growth potential. • Infrastructure companies would be the key beneficiaries of a stable govt as it provides continuity in implementation of projects and a renewed focus on private sector participation in infrastructure development. Government’s focus on spending in the infrastructure space and corporate India’s focus on capital expansion makes the Capital Goods Sector a key beneficiary of this story. • Leading players in the Indian IT sector have emerged stronger through the financial crisis and have benefited from the up tick in global IT spending in recent quarters. We continue to focus on companies which have been adopted multiple strategies including cost rationalization, moving up the value chain (consulting), and increasing focus on strong economies in the emerging markets space to protect margins.

Why should investors consider investment in FIBCF?

• Stability: The focus on large cap companies lends the portfolio stability and at the same time helps investors take advantage of the India growth story. • Strong performance track record: Has delivered consistent and superior performance for over 17 years! • Resilience through market cycles: Has tackled the bull and bear market phases by focusing on long term opportunities rather than short term stories. • True to its label: Remains focused on large cap stock – unlike other funds that might have adopted a flexible approach, based on market conditions. • Consistent payout: The fund has a long history of consistently paying rich dividends. It has paid out dividends every year since 1999. • Experienced investment team. What is the risk-return profile of FIBCF? The blend investment strategy places it above the value funds amongst our actively managed equity funds.

What is the for? Given cap has

type of investors fund suitable

its large focus, it the potential to deliver steady returns with relative lower volatility over the medium to long run. Hence, it can form the core of all types of investors’ core equity portfolio with an investment horizon of 3-5 years or more.


 FT INDIA DYNAMIC PE RATIO FUND OF FUNDS Why PE? Price to Earning ratio (PE) reflects the price one pays for every rupee of earning and a high PE ratio reflects an expensive stock/market as one would be paying more for the same level of earning and vice versa. The rational for choosing Nifty PE (calculated taking weightage average PE ratio of index constituents) is because the index comprises of highly liquid stocks that are constantly monitored by market players and hence is a good barometer of market sentiment. Historical, the PE ratio of the index and the market have moved in tandem. Investment objective: An open end fund which seeks to provide long term capital appreciation with relatively lower volatility through a dynamically balanced portfolio of equity and income funds. • Asset allocation would be Franklin India Bluechip fund 30% and Templeton India Income fund 70%.  FRANKLIN BUILD INDIA FUND

India is one of the fastest growing economies in the world and expected to become one of the top global economies in the coming decades. The realize this potential, substantial investment and efforts will have to be made in the key building blocks of our economy like infrastructure, Financial services, Social development, Agriculture and Resources. FBIF is an open ended equity fund designed to tap investment opportunity in companies benefiting from the growth in these sectors.  FRANKLIN INDIA TAXSHIELD Franklin India Tax-shield is an open-end, equity linked saving scheme, which invests predominantly in equity and equity related instrument and seeks to achieve long term growth of capital while providing tax benefit under section 80C of the income tax Act. • Key factors basically are it’s an open ended scheme (ELSS) with an allocation of at least 80% to equities to enable growth over the long term. • Investments upto 1 lakh eligible for deduction from taxable income under section 80C. • No entry loads on your investment amount.

• Dividends and long term capital gains you earn are fully exempt from tax, as per current tax laws.

Short lock in periods for three years.

 TEMPLETON INDIA PENSION PLAN Templeton India Pension Plan is a central govt notified pension scheme from the private sector. The fund which invests upto 40% of its assets in equities and the remaining in fixed income instruments can help you build a sizeable retirement corpus. Investments in the funds are eligible for tax benefits under Section 80C. Key aspects are: • An open-end tax saving scheme with a lock in periods of 3 financial years that gives you the flexible to invest whenever you have a surplus unlike some of the other retirement products. • While debt components of the portfolio can provide stability.  TEMPLETON INDIA LOW DURATION FUND

Templeton India low duration fund is an open end income fund that aims to provides steady returns by investing in a mix of money market and short term debt instruments. Formally known as Templeton Monthly Income Plan) (TMIP), the name has been changed to Templeton India Low Duration Fund. Investment obejective: An open-end income scheme having an objective to earn regular income for investors through investments primarily in highly rated debt securities.

Key aspects • An open fund that steady investing in market and instruments.

are: end income aims to provide returns by a mix of money short term debt

• Aims to keep the duration the portfolio low to reduce the interest-rate sensitivity of the portfolio.

• Ideal for investors having conservative risk profile with an investment horizon of 3 to 6 months.

 TEMPLETON INDIA EQUITY INCOME Templeton India Equity Income Fund with a mandate to invest upto 50% of its corpus in foreign securities can help investors take advantage of investment opportunities across other emerging markets and participate in their growth. Moreover, TIEIF leverages the international experience of the Templeton emerging market team headed by Dr. J. Mark Mobius, emerging market guru who has been managing emerging markets for more than 30 years. The team follows the value style of investing and compromise analysts and portfolio allocators, supported by a team of assistants, economists and statisticians who work across geographies to uncover the best opportunities available.

Investment open end which seeks combination income and appreciation primarily in a current or attractive dividend yield.

objective: An equity fund to provide a of regular long-term capital by investing stocks that have potentially

Why Franklin Templeton Investments?
FRANKLIN TEMPLETON WORLDWIDE • Premier global investment management organization with over 60 years of global investment experience. • Head quartered in San Mateo, California with offices in 30 countries worldwide.

• Over 459 investment professionals managing USD 664.3 billion in assets for 22 million investors accounts. • Global research expertise of over 100 investment professionals. FRANKLIN TEMPLETON IN INDIA • Established office in 1996 • Largest foreign fund house in India management INR 42,142 crore of average Assets Under Management for over 20 Lakh investor accounts. • Extensive experience in both equity and debt across market cycles: 9 of our funds have a performance track record of over 10 years OUR INVESTMENT PHILOSOPHY • Follow disciplined approach to investing with a strong focus towards process orientation. • Maximize the risk-adjusted returns for our investors in the respective asset classes. • Creative wealth for our investors over the long term. OUR CORE VALUES: WHAT WE STAND FOR

1. Are you planning to save?
Respondents Entrepreneurs Employees Advisors and others Yes 25 42 22 3 2 6 No 28 44 28 Total 100

Table 1.1: Savings Plan

Chart 2.1:

Savings Plan Interpretation:
For the Sample of 100 investors a question was raised about saving as, should people go for savings? For which Almost 90% of respondents mentioned yes, where as only 10% of respondents mentioned no. Tough their profession differ their opinion matches.

The sample of 100 has 28% Entrepreneurs, 28% Individual Finance Advisors and retail investors and remaining about 44% of our employees from many private sector organizations.

From the individual point of view out of 100, 90% of them responded that they have saving plans and rest 10% told no to this question, because they already have alternative adjustments and don’t want to bother about savings. Some of them don’t want to reveal the data. And some do have savings with different financial institutions. From this segment it can be analyzed that people are looking forward for new financial instruments for saving. As a whole if we see from all the available angles, almost all respondents agree to this question, only reason is our economy is encouraging us to save more, which again can be utilized for individuals benefit.

2. Do you have any investments plans?
Respondents Entrepreneurs Employees Advisors and others Yes 21 36 23 7 8 5 No 28 44 28 Total 100

Table 1.2: Investment Plan

Chart 2.2: Investment Plan Interpretation:
From the Sample of 100 investors a question was raised about saving as, should people go for investment? Almost 80% of respondents mention that they have their investment plans. And rests 20% don’t have proper investments plans which they mentioned. Here from this sample of 100, which 28% of them are Entrepreneurs, 28% of them are Individual Finance Advisors and retail investors and remaining about 44% of them are employees from many organizations of private sectors.

From the individual point of view out of 100, 80% of them responded that they have investment plans and rest 20%of them responded as no to this question; because they feel that investment in own business leads to more profitable than any other investment, so they don’t want to invest in other area. Investment in other areas like in secondary market, they feel that there will not be fixed returns from investment. Employees feel more

comfortable in savings rather than other instruments; even they would like to go for fix deposit where they will get at-least minimum returns from their investment, this we can easily understand from given table. Hence it is identified that people looking forward for extra new more areas to pool their investments at a fixed rate of returns. In their opinion secondary market investment is riskier than any other investment. So people are very comfortable opting for investments like Fix deposits, saving certificates, Provident fund schemes etc. Hence, it is clear indication that every one seems to have their investment plans. Few of them don’t want to invest at this stage, only due to lack of market knowledge, and their personal reasons. People found very cautious and looking for new schemes to be introduced which can really provide them good guaranteed returns from an investment.
3. Age group:Respondents Entrepreneurs Employees Advisors and others 20 - 25 2 3 5 25 - 35 17 26 6 35 – 55 7 11 12 Above 55 2 4 5


Table 1.3: Age Group

Chart 2.3: Age Group

Sample of 100 investors from which if we identify the age group, almost 10% are the age group of 20-25, almost 49% are the age group of 25-35, the group belongs to employers and young entrepreneurs, almost 30% are the age group of 35-55, and about 11% are belonging to the group of above 55, the group consists of advisors and few retired employees. Here from this sample of 100, which 28% are Entrepreneurs, 28% are Individual Finance Advisors and retail investors and remaining about 44% of are Employees from many organizations of private sectors.

From the individual’s point of view out of 100 respondents, almost 10% are the age of 20-25, and can be analysed that they would like to take the risk at this moment. Almost 49% are the age group of 2535, from which it can be analysed that they feel more cautious about their investment plans. About 30% are the age group of 35-55, they are looking for a products like which must able to generate fixed returns, and future plans. And about 11% of them are above the age of 55 are responded that they purely looking from the perspective of debt funds, and suggested well in terms of other investment avenues. Hence it is identified that depends upon their age they are opting for schemes like debt, equity or combination of both as their preference. So it can assume that almost investors are very cautious about their investment plans and schemes that are available in the market.

4. Preferable period of investment?
Respondents Entrepreneurs Employees Advisors and others Short term 7 12 7 Long term 21 32 21 Total 28 44 28


Table 1.4: Period of Investment

Chart 2.4: Period of investment Interpretation:
Sample of 100 investors and common question was raised about preferable period of investment. Almost 74% of respondents opting for long term and only 26% respondents are going for short term. Here from this sample of 100, which 28% are Entrepreneurs, 28% are Individual Finance Advisors and retail investors and remaining about 44% of are employees from many organizations of private sectors.

From the Individual’s point of view out of 100, 26% of them responded short term as their preference; they don’t want to spend much time because they want quick returns even though they are

small in number. And rest 74% of them mentioned as long term, because people believe that long term plans will give decent returns as compare with others. Many of they suggested that when you are waiting for long term obviously it will fetch and able to provide a decent profit. Some of them mentioned only long term, because they want to use those returns after some time, let’s say after few years, and when they made this statement this is quiet clear that people expecting some long term objective to be done. From this it can be identified that people looking forward for extra new more areas to pool their investments at a fixed rate of returns for a longer period. And some of them suggested that if people looking for long term that’s good, because at one particular stage risk would be zero and hence can enjoy real benefit of an investment. Hence it is identified that short term perspective will give returns but risk will be high, because market conditions are volatile and it can not be predict, it only can be anticipated. It is clear indication that every one seems to have better understanding of markets with reference to their terms.

5. Are you interested in mutual fund investment?
Respondents Entrepreneurs Employees Advisors and others Yes 25 33 18 3 11 10 No 28 44 28 Total 100

Table 1.5: Interested in Mutual Funds

Chart 2.5: Interested in Mutual Funds Interpretation:
Sample of 100 investors and common question was raised about mutual fund investment whether they are interested or not. Almost 76% of respondents are interested in mutual fund investment. And only 26% of respondents are not interested in mutual fund investment. Here from this sample of 100, which 28% are Entrepreneurs, 28% are Individual Finance Advisors and retail investors and remaining about 44% of are employees from many organizations of private sectors.

From the individual’s point of view out of 100, 76% of them responded that they are interested in mutual fund investment. They believe that comparative with equity shares, mutual funds are best options to invest. And rest only 24% of them mentioned no to this, because people under this category are willing to take risk, so they would like to go for other options like equity and other trading areas. People opting for this only due to reason that they believe steady income will be available under dividend and growth option, so as

long it perform returns will be decent. And rest 24% of them mentioned that they have other investment option which they feel more comfortable than mutual fund investment. From this it is identified that people they have different opinion and people are well aware of options that are available in the market and some are looking for new schemes of investments to be introduced. Many of respondents ignored this. Reason as they specifically mentioned that they would like to go for other options like fixed deposits, LIC etc. Hence, it is identified that mutual funds are the best options. Others there are many but respondents feel quite comfortable with mutual funds. Some of investors had bad experience with the industry, so they don’t want to invest in it. It is clear indication that almost people are satisfied with this option and looking for extra new funds to be introduced in it.

6. Anticipation of risk?
Respondents Entrepreneurs Employees Advisors and others Minimu m 14 26 10 Moderat e 8 14 14 Maximum 6 4 4


Table 1.6: Anticipation of Risk

Chart 2.6: Anticipation of Risk Interpretation:
Sample of 100 investors and common question was raised about anticipation of risk that one can bare. Almost 50% of respondents are choosing for minimum risk, most of the employees are under this category. Remaining 36% are going for moderate and rest opting for high risk. If we compare only entrepreneurs are willing to take high risk as concerned. Here from this sample of 100, which 28% are Entrepreneurs, 28% are Individual Finance Advisors and retail investors and remaining about 44% of are employees from many organizations of private sectors.

From the individual’s point of view out of 100, 50% of them responded as minimum risk exposure that they can bear. They believe that expect little with less effort is enough for them to survive from their investment. About 36% of them are going for moderate as such, and people are quite satisfied with moderate risk, as they are not looking for maximum returns from investment. And about 14% of them are ready to take maximum risk compare with their expectations from an investment. As they are opting for maximum risk exposure obviously they will look for high returns. One thing need to concentrate is risk factor, where entrepreneurs can take risk compare with others like employees and retail investors. From this study it can be identified that people are very much cautious to take much risk as such. It can be stated that individuals are feeling comfortable opting minimum risk and somehow moderate. One thing is very clearly indicating that no advisors are opting for high risk as of information given by them. Hence, more number of respondents opting for minimum risk and moderate, as they are not looking for high returns but they believe

steady returns from an investment.

Only few respondents about

14% of them are exposed themselves to take high risk and they are very much aggressive in the market and looking for high returns from an investment option.

7. Primary goal of your investment?
Respondents Entrepreneurs Employees Advisors and others Educatio n 11 12 4 House 9 14 9 Retireme nt 8 18 15 100

Table 1.7: Primary Goal

Chart 2.7:

Primary Goal Interpretation:
Sample of 100 investors and common question was raised about primary aim of their investment. 27% of respondents mentioned that their primary aim as Education of their children, and 32% have clearly mentioned that they will be looking at the perspective of housing benefit. And about 41% of respondents looking from the perspective of retirement benefit.

Here from this sample of 100, which 28% are Entrepreneurs, 28% are Individual Finance Advisors and retail investors and remaining about 44% of are employees from many organizations of private sectors.

From the individual’s point of view out of 100, 27% of them opted for education as their primary goal. Many respondents have their individual opinion to this; hence it has found that mutual funds are best possible way to invest. About 32% of them are looking forward for a housing benefit; they set their target as fulfill their desire with house from an investment. 41% of them are considering as retirement benefit, where they can enjoy the benefit of returns after their retirement. It can be identified that most number of respondents are looking for retirement benefit, and for liquidity. People have view that going for retirement benefit is a better option, where they would like to enjoy the benefit of regular income from mutual fund scheme. Most of advisors also do consider this because they mentioned that they are looking for regular returns for longer period. Hence, it is identified that more respondents are going for retirement benefit as primary goal; from this it can conclude that mutual funds are better investment for long term investors. And mutual funds are the best avenues to pool their investments.

8. % of return that you are expecting with desired anticipation of risk?
Respondents Entrepreneurs Employees Advisors and 10 – 15% 9 10 5 15 – 20% 14 16 9 Above 20% 5 18 14 100


Table 1.8: Risk Return Expectancy

Chart 2.8: Risk Return Expectancy Interpretation:
Sample of 100 investors and common question was raised about expected return from their investment. Their opinion goes very similar upto some extent and then slight variation. Quite number of responses says above 20% is what they are expecting, and remaining respondents like to go for in between 10-20%. Here from this sample of 100, which 28% are Entrepreneurs, 28% are Individual Finance Advisors and retail investors and remaining about 44% of are employees from many organizations of private sectors.

From the investor’s point of view out of 100, 24% of them responded that they are expecting in between 10-15%, very limited respondents are expecting low returns as such. About 39% of them are ready to take benefit of 15-20% of return from their investment as they mentioned that when they are taking slight high risk, obviously will have to look at good return. And almost 37% of them

are looking at 20% or more return that they are expecting from return. Co-relate with previous question of terms (Short and long) entrepreneurs are looking for short term, except them remaining are looking for long term. When I asked why? One of investors has mentioned, as long as investment period goes investors will be in a position to earn decent returns from his investment. As long it goes risk will be at zero level and investor will enjoy actual benefit of an investment. It is identified that when people are opting for opting for 20% or more return definitely has to wait for longer period. From this it can be analysed that investors following same strategy when they are going for more % of returns. Hence, it is identified that whenever there is an option for high return definitely one should have to wait for longer the period, irrespective of market performance. From this it can be stated that, wait till maturity of a fund to enhance maximum return.

9. Where would you like to invest in mutual fund?
Respondents Equity Debt Balanced ELSS(Tax shield) 9 0 3 4 20-25 25-35 12 2 6 16 35-55 4 8 7 10 0 12 5 2 55 and above


Table 1.9: Age with combined investment

Chart 2.9: Age with combined investment Interpretation:
Sample of 100 investors and common question was raised about investment area. Their opinion goes very similar even though difference in their profession. Quite number of responses says balanced and ELSS (Tax Shield).

From an equity investment point of view, it is identified that most number of investors opting for an equity investment is aged in between 20-35; almost 84% of people are opting for equity as their preference. With the help of this study it is identified that aged below 35 almost respondents are going for equity as their option, which is proved to be best option for them.

From debt point of view, age in between 20-35, almost no one is opting for debt as investment option. Many of them believe that debt instrument is for those who are not willing to take any risk. And if we see this from other angle almost 36% of people from the above age of 35 are opting for debt. And almost 60% of people from the age group of above 55 are going for debt as their preference.

From the above concept of balanced where combination of debt and equity is concerned. Almost people have positive response towards balanced fund; almost 22% of overall respondents mentioned their preferences as balanced fund, and specifically mentioned that risk will be low from this particular scheme. From the above graph we can easily understand that how investors are cautious about their investment plans.

ELSS (Tax shield):
From this it can be analysed that more number of respondents opting for (ELSS) only to reduce tax burden. Most of responded are under the age of 25-55 and people working different organization, if we see the variation, it is identified that more number of people belongs to private sector, where they are getting healthy income, so as to minimize their taxes people prefer this schemes.

Overall if we look at it, maximum number of responses for tax schemes, almost 40% of them are opting for this scheme specifically, and 22% of respondents going for balanced fund, and where as 25% of them are going for an equity option, and rest only 13% are looking at debt schemes. With the help of this we can summarizes that respondents are well aware of schemes with prior to their respective age. This could help them in a better way.

10. Important factors do choosing an investment?
Respondents Entrepreneurs Employees Advisors and others 4 7 3 Safety 15 31 21


Liquidity 9 6 4


Steady growth


Table 1.10: Factors to consider

Chart 2.10: Factors to

consider Interpretation:
Sample of 100 investors and common question was raised about factors do they consider before investment. Almost 70% are looking from the perspective of steady growth, where as only 10% with safety, and almost 20% are looking from the point of liquidity. Here from this sample of 100, which 28% are Entrepreneurs, 28% are Individual Finance Advisors and retail investors and remaining about 44% of are employees from many organizations of private sectors.

From the individual’s point of view out of 100, 14% of they responded that they are looking for safety returns from an investment, where investors very much cautious about their individual plans. Almost 67% of them would like to go for steady growth. They mentioned that when an individual looking at steady growth obviously will wait for longer the period, and hence an investment will be done for long term. And one of the respondents has suggested that once investment has been done, next step

ultimately need to look for steady returns. And about 19% of them are looking for liquidity, as some respondents are from entrepreneurs, so they require liquidity at any moment, and rest almost respondents will be opting for steady returns from an investment. From this study it is identified that people are very cautious regarding their investment plans. Most of advisors also suggest that better to look at steady returns rather that anything else. Hence, investors feel that steady returns can beat further inflation, and if we look at risk factor, at certain point of time risk of an individual investment will be zero, and will have a decent returns from an investment.


Interested fund houses to invest.
HDFC 22 Reliance 18 Others 32

Franklin Responden 28 ts

Table 1.11: Service Providers

Chart 2.11:

Service Providers Interpretation:
Sample of 100 respondents where similar question was raised about interested fund houses to invest. There were many options for them,

based upon their services people preferred one or another fund house.

From this table it can be analysed that there are many number of players who are performing in the market. But if we see their ratings as per respondent’s preference almost 28% says Franklin Templeton provides better facilities comparative with others. And at the same time investors do consider brand value too. Some of the other respondents about 22% say that HDFC mutual fund is doing well in the market. There are respondents from other than Andhra Pradesh who responded as HDFC doing well in the market. Where as 18% of respondents says Reliance Mutual fund is doing well in terms of rendering their services as well as customer service. Other respondents abut 32% responded as other players such as Birla, DSP Black rock, Fidility, ICICI, Sundaram etc. If we see as a whole almost players are performing well in the market, because of huge competition from others. So they are competitors of each other. Hence it is identified that always customer’s preference would be better service provider, because they expect something in return. Basically from these fund houses people are expecting good communication of every activity, research based data, problem solving etc, depends upon which rating has been done.


Are you satisfied with your investment options?

Respondents Entrepreneurs Employees Advisors and others

Yes 27 41 26 1 3 2

No 28 44 28

Total 100

Table 1.12: Satisfaction Level

Chart 2.12:

Satisfaction Level Interpretation:
Sample of 100 investors and common question was raised about satisfaction level from mutual fund investment. Almost 95% of respondents are satisfied with mutual fund investment and where as only 5% respondents are not satisfied with the mutual fund investment. This is only due to their personal experience as they mentioned. Here from this sample of 100, which 28% are Entrepreneurs, 28% are Individual Finance Advisors and retail investors and remaining about 44% of are Employees from many organizations of private sectors.

From the individual’s point of view out of 100, 94% of them responded that they are very much satisfied with mutual fund investment. And they are quiet comfortable with kind of facility

provided by AMC’s. Most of respondents have mentioned that industry doing well, and fund houses also reaching individual expectations in terms of services. Only few respondents were unhappy with mutual fund investment because of their personal reasons. And only few told that they had bad experience with the investment. Almost advisors are satisfied with it and many of them suggesting others to invest in mutual funds. Hence, it is identified that, almost all respondents quite satisfied with services offered by various fund houses, and mutual fund performance. So this made a clear statement that all investors are very much satisfied with mutual funds.

 Criteria to follow an investment strategy, which can be one of the most important factors to consider.  For growth oriented funds “Focus must be on medium and long capital stock” which can able to provide good return.  5(five) Important things to know in mutual fund calculation, so that one can analyze in a better means. Are Alpha, SD, RSquare, Beta, Sharpe Ratio.  In Visakhapatnam more number of respondents are the age of 35-55, and respondents from other private organization are the age of 25-35, with that it can be easily analyze in a better way.  In my study most of the Investors were Graduate and some are post graduates and they do have good market knowledge.  In Occupation group most of the Investors were private employees, the second most Investors were business persons and the least were associated with advisors and retail investors.

 It is observed that more number of respondents almost 50% of them are opting for minimum risk, and most of them they belonging to employees category, and rest about 36% of them are going to moderate, most of retail and others are in this category, and rests about 14% of them are entrepreneurs are opting for maximum risk exposure.  Mostly respondents preferred High Return from an investment option, and the second most respondents preferred Low Risk, even returns are low, and rest few are looking for liquidity and the least they preferred Trust.  Most number of respondents they would like to for retirement benefit as their primary goal. And rest of them opting for other such as education and house.
 65% of them preferred one time investment and 35% of them

preferred SIP.  The most preferred Portfolio was Equity, the second most was Balance (mixture of both equity and debt), and the least preferred Portfolio was Debt portfolio.  Maximum Number of respondents preferred Growth Option for healthy returns, and the second most preference given for Dividend Payout and then least for Dividend Reinvestment.  Almost 25% of the respondents are expecting returns in between 10 – 15% from their mutual fund investment, and

about 40% of them are expecting in between 15 – 20% of return, and rest about 35% are expecting more than of 20% from an investment.  About 14% of the respondents expecting safety from an investment, whereas 67% of them are looking for steady growth and rests only few are looking for liquidity at any point of time.  It has been observed that almost 94% of respondents are satisfied with investment options, and only 6% of them are not.  It has been identified that investors showing more interested towards SIP (systematic investment plans) rather than anything else.  It has been identified that some of investors are looking for safe returns along with low risk.  Respondents are looking for more visibility from an individual AMC’s. In terms of transparency, and facts.  Investors looking for more advantageous products which should able to cover retirement benefit in a better way.

 Investors’ looking for more benefits from investment, so advice is to introduce more tailor made plans so that it would be helpful for those needy investors.  As investor responded that they have their individual plans, so try to come up with more innovative investment plans.  Should focus on introduce more long term plans, as people demanding for more diversified long term plans.  Should focus on introduction of ELSS (Equity linked saving scheme) tax exemption plans under sec 80’C, so that it would really helpful for common employee.  Need to focus on YTM, where investors should have maximum yield.  Exit load should be minimized in case of withdrawal in one year, so that more investors can participate.  Invest in mutual funds when markets are low, will gives you better returns.  Short term investments should be introduced where investors should have at least 10 to 15% returns from an investment.  Equity diversified mutual funds can able to deliver 15 to 20% returns over long term, so these kind of funds to be introduced for aged below 35, where they can have maximum advantage.

 Investment through SIP (Systematic investment plans) is the best options available in the market, so better to go with it.  Usually high returns funds to be introduced, which can have better advantages.  Funds with low risk and steady returns will be introduced so that it would be helpful for investors.  Special funds like which would be benefited for corporate employees, needs to be introduced.  Some more students plans to be introduced, so that people under this category can also be in a track.  HDFC plans have quiet good features, so advisable to come up with such features and promote themselves in the market.  Retirement schemes to be introduced, which would have regular high returns along with some value added benefits.  Dynamic mutual funds to be introduced, which basically will be focusing upon value, power and focus. Means they will not use clients money directly.  Exchange traded funds to be introduced, which are special kind of financial investment tools to replicate the market indexes.  There should not be any load on mutual funds, where there will not be any charges like entry and exit load as such, only sales commission can be charged based on its NAV.

Since, from last 60 years mutual funds are there in this country. The ride through these 60 years is not been smooth. Investor’s opinion is still divided, while some are for the mutual funds others are against it. Mutual Funds (MF) have become one of the most attractive ways for the average person to invest his money. It is said that Bank investment is the first priority of people to invest their savings and the second place is for investment in Mutual Funds and other avenues. A Mutual Fund pools resources from thousands of investors and then diversifies its investment into many different holdings such as stocks, bonds, or Government securities in order to provide high relative safety and returns. . Also generate leads of the prospective investors in Mutual Funds for the Asset Management Company (AMC) There are many improvements pending in the field and it has to happen as soon as possible so as to call the MF industry as an Organized and well-developed sector. On the basis of the study it is found that Franklin Templeton Investments pvt ltd, Visakhapatnam is better services provider than any other AMC in city, because of their timely research and personalized advice. Franklin Templeton Investments pvt ltd,









encouragement and protects the interest of the investors.

Most of investors are not aware of market properly, since Franklin Templeton Investments pvt ltd, Visakhapatnam customer care department and other advisors is able to provide them necessary information relates to market movements. Franklin Templeton Investments pvt ltd is providing research-based team to solving investor's problems, and they could able to maintain fair and transparent details. Mutual funds also charge management fees. The major advantages of mutual funds are diversification, professional management, and ownership of a variety of securities with a minimal capital investment. Mutual funds are also convenient because recordkeeping is done by the fund. There are several drawbacks, however. Mutual funds may be costly to acquire because of sizable commissions and professional management fees. The sale price is known as the NAV or net asset value. Most important role by a fund manager where the person is responsible for implementing a fund's investing strategy and managing its portfolio trading activities. A fund can be managed by one person, by two people as co-managers and by a team of three or more people. Fund managers are paid a fee for their work, which is a percentage of the fund's average assets under management. Another term for a fund manager is an investment manager.

Hence mutual funds are the best means of investment, where one individual can maximizes his wealth. Mutual funds provides well returns if an investor willing to wait for longer the period. So by this means investors can enjoy the real benefit of mutual fund.

Books and Journals:


Mark Mobius, 2008, “Mutual funds, an introduction to core concepts” Asia, John Wiley & Sons, Asia Pvt Ltd. Prasannachandra, 2007, “Investment analysis and Portfolio management” New Delhi, Tata McGraw-Hill. V.K.Bhalla, 2000, “Investment management” New Delhi, S. Chand. Finance insight, 2009, “Systematic investment planning” New Delhi, CNBC TV 18, Prabhat Kiran, Rajendra Palace. Deepa Venkataragavan, 2008, “Financial advisor” New Delhi, CNBC TV 18, Personal finance editor, wealth. “Ethical Flavour in Mutual Funds” 2001, Kolkata, article by S. Suma, IIAM Prof. Broachers and books by Franklin Templeton Investments house.


Questionnaire on Analysis of attitude, preference and satisfaction level of customers towards mutual funds investment.

Name:Age: -


 Are you planning to save? Yes No  Do you have any investment plans? Yes No  Preferable period of investment? Short term Long term  Are you interested in mutual fund investment? Yes No  Anticipation of risk. Min Moderate  Primary goal of your investment? Education House benefit  Interested fund houses to invest? ( )  Which investment do you feel more profitable? Fix deposits Mutual Funds Equities Others ) ( ) ( Maximum Retirement

 % of return that you are expecting? 5-10% 10-15%  Where would you like to invest? Debt Equity savings)  % of savings towards investment? 15-20% above 20%


10-25% 30-50% 55-80% 100%  Important factors to you consider before choosing an investment? Safety of investment principle Opportunity for steady growth Liquidity  How do you intend to use the income earned from investment? Reinvest between 20-80% of earnings from investment Reinvest total earnings Receive 80% and remaining reinvest.  Are you satisfied with your investment options? Yes No

Any suggestions:________________________________________________________________ ________________________________________________________________ ____________________________________________________ Thanks for your cooperation.


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