A SUMMER TRAINING PROJECT REPORT

ON

“COMPARATIVE ANALYSIS OF AXIS MUTUAL FUND WITH HDFC MUTUAL FUND,BIRLA SUN LIFE MUTUAL FUND AND INVESTORS PERCEPTION TOWARDS INVESTMENT IN AXIS MUTUAL FUND” Submitted in partial fulfilment for MASTER OF BUSINESS ADMIMISTRATION Programme of MM INSTITUTE OF MANAGEMENT MMU-MULLANA (AMBALA) *Batch:-2009-2011*

Submitted by SHANKY ROLL NO: 12097138 MBA BATCH: 2009-2011

Under Guidance “Mr. VIJAY KUMAR” BRANCH MANAGER AXIS BANK LTD. (KAITHAL)

MM INSTITUTE OF MANAGEMENT MAHARISHI MARKANDESHWAR UNIVERSITY MULLANA-(AMBALA)

PREFACE
MBA is a stepping-stone to the management carrier and to develop good manager. It is necessary that the theoretical must be supplemented with exposure to the real environment. Theoretical knowledge just provides the base and it‟s not sufficient to produce a good manager that‟s why practical knowledge is needed. Therefore the research product is an essential requirement for the student of MBA. This research project not only helps the student to utilize his skills properly learn field realities but also provides a chance to the organization to find out talent among the budding managers in the very beginning. Investing money where the risk is less has always been risky to decide. The first factor, which an investor would like to see before investing, is risk factor. Diversification of risk gave birth to the phenomenon called Mutual Fund. The Mutual Fund Industry is in the growing stage in India, which is evident from the flood of mutual funds offered by the Banks, Financial Institutes & Private Financial Companies. In accordance with the requirement of MBA course I have summer training Research project on the topic “COMPARATIVE ANALYSIS OF AXIS MUTUAL FUND WITH HDFC MUTUAL FUND, BIRLA SUN LIFE MUTUAL FUND AND INVESTORS PERCEPTION TOWARDS

INVESTMENT IN AXIS MUTUAL FUND”. While preparing this project report, I got an opportunity to learn many valuable things.

CERTIFICATE FROM GUIDE

This is to certify that the project topic “COMPARATIVE ANALYSIS OF AXIS MUTUAL FUND WITH HDFC MUTUAL FUND,BIRLA SUN LIFE MUTUAL FUND AND INVESTORS PERCEPTION TOWARDS INVESTMENT IN AXIS MUTUAL FUND” is prepared and completed successfully by Mr. SHANKY (Roll No. 12097138) under my guidance. The project has been completed to my satisfaction and I wish him all the best in his future endeavour.

“Mr. VIJAY KUMAR” (Project Guide) BRANCH MANAGER, AXIS BANK LTD. KAITHAL (HARYANA)

I feel self-short of words to thanks My Parents and Friends who had directly or indirectly instrumental in the completion of the project. ESHA CHAWLA”. I am indebted to the Bank Employees who supported me in handling my queries. for his proper guidance throughout the project. “Dr.ACKNOWLEDGEMENT “EXPRESSION OF FEELINGS BY WORDS MAKES THEM LESS SIGNIFICANT WHEN IT COMES TO MAKE STATEMENT OF GRATITUDE” Summer training is one of the most vital and active part of the curriculum of management students. I did the work as a management trainee at Axis Bank Ltd. I would like to extend my heartfelt gratitude to “Mr. His valuable suggestions and helping hands has helped me to complete my project successfully. I feel immense pleasure to express a deep sense of gratitude to my Director of MMIM. Last. (SHANKY) . Ambala Road. I am indebted to all respondents for their time passion during the long conversations. at Kaithal Branch & I would also thankful to my Faculty Guide “PROF. AMIT MITTAL” who has given me an opportunity to do my internship in Axis Bank Ltd. VIJAY KUMAR” Branch Manager of Axis Bank Ltd. Without his support and cooperation I would have failed in my endeavours and targets in the summer training. I take this opportunity to express my gratitude to all the people who have guided and helped me directly or indirectly in the course of completion of my project. Kaithal for a period of six weeks starting from 14th June. 2010. (Kaithal).

MULLANA. BIRLA SUN LIFE MUTUAL FUND AND INVESTORS PERCEPTION TOWARDS INVESTMENT IN AXIS MUTUAL FUND” is prepared and submitted by me to MM Institute Of Management (MMIM) MMU-MULLANA in partial fulfilment for the award of the Master Degree in Business Administration and this report has not been submitted elsewhere. .DECLARATION This is to certify that the project topic “COMPARATIVE ANALYSIS OF AXIS MUTUAL FUND WITH HDFC MUTUAL FUND. MMU. Date: SHANKY ROLL NO: 12097138 MBA. BATCH: 2009-2011 MMIM.

This Project covers the topic “COMPARATIVE ANALYSIS OF AXIS MUTUAL FUND WITH HDFC MUTUAL FUND. Suggestions & Recommendation. Mutual Funds have not only contributed to the India growth story but have also helped families tap into the success of Indian Industry. Beta. The 2nd part of the Project consist the Research Methodology. Treynor‟s Index and Jensen Index has been show the risk and return of the portfolio & correlation between the fund return & market return has been used to show the investment pattern in mutual fund in industry. Which Investment Strategy they follow (Equity fund. This Report will help to know the past performance of open ended equity growth mutual funds scheme. Debt fund. Sharpe‟s Index. The data collected has been well organized and presented. BIRLA SUN LIFE MUTUAL FUND AND INVESTORS PERCEPTION TOWARDS INVESTMENT IN AXIS MUTUAL FUND”. The analytical tools such as Standard Deviation.EXCUTIVE SUMMARY In few years Mutual Fund has emerged as a tool for ensuring one‟s financial well being. This Project gave me a great learning experience and at the same time it gave me enough scope to implement my analytical ability. Balanced fund) etc. Findings. I hope the research findings and conclusion will be of useful. The 1st part gives an insight about Mutual Fund and its various knowledge-full aspects. Which type of Scheme they prefer. . As information and awareness is rising more and more people are enjoying the benefits of investing in mutual funds. HDFC and Birla Sun Life Mutual Funds and Investor perception towards Axis Mutual Fund. I also taken interview of many People those who were coming at the Axis Bank Ltd. Kaithal Branch where I done my Project. Alpha. Conclusion. For the collection of Primary data I made a questionnaire and surveyed of 100 people. Comparative Analysis of Axis. The Industry Profile. The Company Profile. How much return they expect from their investment. This report also tells us about the Investor‟s Perception Towards Investment In Axis Mutual Fund means that investor are How much risk willing to take. This Project as a whole can be divided into two parts.

....................................18-39 Page No.............................. FINDINGS............................................100 8....................... COMPANY PROFILE............................101 BIBLIOGRAPHY APPENDIX/ANNEXURE ......97-99 7................CONTENTS Chapter Name & No.......... PART-1 1.. LITERATURE REVIEW.......01-02 2...... RESEARCH METHODOLOGY..................................... CONCLUSION.........................03-17 3.......................... INTRODUCTION........ INDUSTRY PROFILE...................................... PART-2 4...43-96 6................................... SUGGESTIONS & RECOMMENDATION..........40-42 5..............................................

................................... Portfolio holdings of Axis Equity Growth Fund....55 15.........52 10..................... History of Axis Equity Growth Fund.......................................17 6............... Fund profile of BSL 95-Growth Fund..................................................... Core management team of Axis Bank...........................................55 13........................55 14................. 1.........................................................Growth Fund................... Fund sector allocation of HDFC Equity Growth Fund.......55 16..............52 8.......................................................................................................15 3..........................59 20......................................................... Fund profile of Axis Equity Growth Fund............................................... Portfolio holdings of HDFC Equity Growth Fund.......................................................... Returns of HDFC Equity Growth Fund................................................................LIST OF TABELS Table Name & No...52 7..............56 17..............................................53 11.60 .......... Asset allocation of HDFC Equity Growth Fund...............13 2.....................................56 18............... Fund profile of HDFC Equity Growth Fund..................... Sector allocation of Axis Equity Growth Fund..52 9...............................60 23......... Board of directors of Axis Bank.........................................................................................................59 21............................................ Financial performance of Axis Bank.................. Portfolio holdings of BSL 95........................ History of BSL 95-Growth Fund....... History of HDFC Equity Growth Fund........................... Returns of Axis Equity Growth Fund.... Asset allocation of BSL 95-Growth Fund............... Page No........................... Sector allocation of BSL 95-Growth Fund... Returns of BSL 95-Growth Fund.16 4............................. Shareholding pattern of Axis Bank.....59 19....... Asset allocation of Axis Equity Growth Fund................................................. Key performance indicators of Axis Bank.......53 12.59 22......................16 5....................................................................

.................................. Treynor‟s index f Axis............. Risk prefer by Axis MF investor‟s.......... Satisfaction level of Axis MF investor‟s.............86 42....................... Jensen‟s index of Axis........................ BSL Mutual Funds............................. No......................... Avg.......... HDFC................................77 32.. Trend analysis of Axis Mutual Fund NAV........................... Return expected by various investor‟s................... Performance evaluation of Axis Equity Growth Fund......................................................... of investor‟s at different Income Level...........................73 29.......................................... BSL Mutual Funds.... of investor who liked the different feature of Axis MF............ HDFC............. Performance evaluation of BSL 95-Growth Fund............. No.......66 25.....................85 40............. No...86 43.......................70 27....................80 35....................................................................82 37....... Table of investor‟s influenced behaviour...............................................................................24..................74 30...81 36......................87 44.................. Expected and Actual NAV of Axis Mutual Fund.............................. Scheme (By Investment) prefer by Investor‟s......................................................72 28........... BSL Mutual Funds.. No..................................96 ..................... investment period of Axis MF investor............. of investor‟s at different Age Group.............................................................. Sharpe‟s index of Axis.......... Trend analysis of BSL Mutual Fund NAV......94 51........................ Performance evaluation of HDFC Equity Growth Fund...........95 52.......................................................91 48..........84 39.......... of investor‟s from where they know about Axis MF........................ Investment objective of Axis MF investor...........92 49................. Investor‟s awareness towards Axis MF................. HDFC....... Expected and Actual NAV of HDFC Mutual Fund........... of investor‟s having different Occupation...85 41................... Investment decision of investor‟s...68 26...... No.............. Investor‟s who not invested in Axis MF........................................... Trend analysis of HDFC Mutual Fund NAV......................... Expected and Actual NAV of BSL Mutual Fund...........................................................83 38...90 47....................................79 34.......89 46..78 33.......................................................76 31.................................................... From where investor‟s purchase Axis MF..........93 50........... Scheme (By Structure) prefer by investor‟s..............88 45............

..................87 15..................LIST OF CHARTS Chart Name & No.......84 10....... Analysis investment objective of Axis MF............83 9....................... Trend of BSL Mutual Fund NAV.. Analysis of avg.................. Analysis according to Income............ Treynor's Index Analysis............................81 7....................... Page No......... Analysis of expected return of Axis MF Investor.................................................................................................85 12................................................... Trend of AXIS Mutual Fund NAV.......... Analysis source of awareness..86 14......................................... Jensen's Index Analysis.................................................. Trend of HDFC Mutual Fund NAV.....................................................................................................................90 ................. Analysis according to Occupation..................85 11.............................86 13................................................................................................82 8................................79 6.88 16.............. 1........ Analysis awareness of Axis MF...........................................77 5................... Analysis investment decision of investor‟s................ Analysis according to Age.................................................................................... investment period of Axis MF Investor..............................................................72 2............................................ Analysis of risk prefer by Axis MF Investor........ Sharpe's Index Analysis.............. Analysis who not invested in Axis MF.....................................................................................................73 3.............................74 4......89 17..

...............................................................94 22................................96 .. Analysis of scheme (By Structure) prefer by Axis MF Investor............................ Analysis of satisfaction level of Axis MF investor..............18...93 21.....91 19...... Analysis of investor influenced behaviour of Axis MF...........................92 20..........................95 23........... Analysis of scheme (By Investment) prefer by Axis MF Investor......... Analysis of purchase decision of Axis MF investor.......... Analysis of Axis MF features....................

PART-1 Chapter-1 INTORDUCTION .

INTRODUCTION Mutual fund is a buzz in the market these days. derivatives and other assets have become mature and information driven. It appoints professionally qualified and experienced staff that manages each of these functions on a full time basis. the mutual fund vehicle exploits economies of scale in all three areas research. real estate. In effect. it is completely untapped market. More and more fund is pouring in our country. A mutual fund is the answer to all these situations. the mutual fund in its present . The large pool of money collected in the fund allows it to hire such staff at a very low cost to each investor. we can see its effect in all areas. Markets for equity shares. This is increasing liquidity in the market and hence increasing the money in the hands of people and thus investment. brokerage dues and bank transactions etc. inclination and time to keep track of events. As the future prospects for Indian companies are bright. While the concept of individuals coming together to invest money collectively is not new. bonds and other fixed income instruments. A mutual fund is the ideal investment vehicle for today‟s complex and modern financial scenario. Price changes in these assets are driven by global events occurring in faraway places. An individual also finds it difficult to keep track of ownership of his assets. Each Mutual Fund scheme has a defined investment objective and strategy. These could range from shares to debentures to money market instruments. investments and transaction processing. professionally managed portfolio at a relatively low cost. The income earned through these investments and the capital appreciations realized by the scheme are shared by its unit holders in proportion to the number of units owned by them (pro-rata). The mutual fund industry is burgeoning. skills. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified. they have lots of opportunities to expand their business worldwide. The Indian stock market and companies have become lucrative for foreign investors. Atypical individual is unlikely to have the knowledge. Hence this industry has a lot of opportunities in it. understand their implications and act speedily. the investment in Indian companies. Only 5% of total potential of this industry has been grabbed. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds. As Indian economy is growing at the rate of 8% per annum. investments. That‟s why it is so much interactive. A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal.

Today. . In fact.form is a 20th century phenomenon. mutual funds gained popularity only after the Second World War. Globally. mutual funds collectively manage almost as much as or more money as compared to banks. there are thousands of firms offering tens of thousands of mutual funds with different investment objectives.

Chapter-2 COMPANY PROFILE .

established in 1865. "In respect of banking it seems we are behind the times. most of the banks opened in India during that period failed. the other two being the Bank of Bombay and the Bank of Madras. Promoters opened banks to finance trading in Indian cotton. The oldest bank in existence in India is the State Bank of India. With large exposure to speculative ventures.COMPANY PROFILE BANKING IN INDIA: Banking in India originated in the first decade of 18th century. The depositors lost money and lost interest in keeping deposits with banks. which started in 1786. All these banks operated in different segments of the economy. The American Civil War stopped the supply of cotton to Lancashire from the Confederate States. The presidency banks were established under charters from the British East India Company. most of which served particular ethnic and religious communities. the Indian economy was passing through a relative period of stability. After India's independence in 1947. both of which are now defunct. They merged in 1925 to form the Imperial Bank of India. Subsequently. became the State Bank of India. This was one of the three presidency banks. The Bank of Bengal. industrial and other infrastructure had improved. and the social. For many years the Presidency banks acted as quasi-central banks. The presidency banks dominated banking in India. concentrated on financing foreign trade. However. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. which later became the State Bank of India. which originated in the "The Bank of Bengal" in Calcutta in June 1806. upon India's independence. The exchange banks. This segmentation let Lord Curzon to observe. which. the Reserve Bank was nationalized and given broader powers. there were hardly any banks in India in the modern sense of the term. Indian joint stock banks were generally undercapitalized and lacked the experience and maturity to compete with the presidency and exchange banks. The General Bank of India. mostly owned by Europeans. Around the turn of the 20th Century. and Bank of Hindustan. at the end of late-18th century. We are like . Indians had established small banks. EARLY HISTORY: The first fully Indian owned bank was the Allahabad Bank. banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. There were also some exchange banks and a number of Indian joint stock banks. as did their successors. Around five decades had elapsed since the Indian Mutiny.

in Mumbai . Punjab National Bank is the first Swadeshi Bank founded by the leaders like Lala Lajpat Rai. Before 1969. The nationalization of banks in India took place in 1969 by Mrs. List of Public Sector Banks in India is as follows: ➢ Allahabad Bank ➢ Bank of Baroda ➢ Bank of Maharashtra ➢ Central Bank of India ➢ Dena Bank ➢ Indian Overseas Bank ➢ Punjab and Sind Bank ➢ State Bank of India (SBI) ➢ Andhra Bank ➢ Bank of India ➢ Canara Bank ➢ Corporation Bank ➢ Indian Bank ➢ Oriental Bank of Commerce ➢ Punjab National Bank . Seven more banks were nationalized with deposits over 200 crores. in 1906. State Bank of India (SBI) was the only public sector bank in India. Corporation Bank. Canara Bank and Central Bank of India. Indira Gandhi the then prime minister. NATIONALIZED BANKS IN INDIA: Banking System in India is dominated by nationalized banks. Fourteen banks were nationalized in 1969." By the 1900s.some old fashioned sailing ship. SBI was nationalized in 1955 under the SBI Act of 1955. The major objective behind nationalization was to spread banking infrastructure in rural areas and make available cheap finance to Indian farmers. Sardar Dyal Singh Majithia. A number of banks established then have survived to the present such as Bank of India. The second phase of nationalization of Indian banks took place in the year 1980. The Swadeshi movement in particular inspired local businessmen and political figures to found banks of and for the Indian community. Indian Bank. Bank of Baroda.both of which were founded under private ownership. divided by solid wooden bulkheads into separate and cumbersome compartments. the market expanded with the establishment of banks such as Punjab National Bank. in 1895 in Lahore and Bank of India.

But after nationalization of banks in 1969 public sector banks came to occupy dominant role in the banking structure. They have made banking more efficient and customer friendly. Major Private Banks in India is: ➢ Bank of Rajasthan ➢ Axis Bank ➢ Centurion Bank of Punjab ➢ Federal Bank ➢ ICICI Bank ➢ Jammu & Kashmir Bank ➢ Karur Vysya Bank ➢ Bharat Overseas Bank ➢ Catholic Syrian Bank ➢ Dhanalakshmi Bank ➢ HDFC Bank ➢ ING Vysya Bank ➢ Karnataka Bank ➢ Kotak Mahindra Bank . Private sector banking in India received a fillip in 1994 when Reserve Bank of India encouraged setting up of private banks as part of its policy of liberalization of the Indian Banking Industry. In the process they have jolted public sector banks out of complacency and forced them to become more competitive. Private Banks have played a major role in the development of Indian banking industry. Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. They were founded in the preindependence era to cater to the banking needs of the people.PRIVATE BANKS IN INDIA: All the banks in India were earlier private banks.

Personal Loans and Loans for Twowheelers. Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies.. i. the Axis Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions. and United India Insurance Company Ltd. AXIS PROFILE: Axis Bank is one of the fastest growing banks in the country and has extremely competitive and profitable banking franchise evidence by: Comprehensive portfolio of banking services including Retail Banking. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. This is one of the largest ATM networks in the country. It is also a leading provider of Depository Participant (DP) services for retail . 403. after the Government of India allowed new private banks to be established. Business Banking. Loans against marketable securities. RETAIL BANKING SERVICES: The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services. Phone Banking and Net Banking.63 crores with the public holding (other than promoters and GDRs) at 53. and high net interest margins are likely to be the key drivers for growth. The New India Assurance Company Ltd. Treasury.AXIS BANK Axis Bank was the first of the new private banks to have begun operations in 1994. as well as through alternative delivery channels like ATMs. and International Banking. Corporate Banking. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence. The products are backed by world-class service and delivered to the customers through the growing branch network. robust non-operating income. The Bank today is capitalized to the extent of Rs. The Bank has a very wide network of more than 1000 branches. low proportion of non-performing assets. Welldiversified asset mix. The Bank has a network of over 4293 ATMs providing 24 hrs a day banking convenience to its customers. information and advice on various investment avenues. giving the customer a one-stop window for all his/her banking requirements.e. The Oriental Insurance Company Ltd.I). The Axis Bank Preferred program for high net worth individuals. The Bank also has a wide array of retail loan products including Auto Loans. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI .. National Insurance Company Ltd.72%.

as the name indicates. including working capital finance. companies from the domestic business houses and prime public sector companies. the Bank provides a wide range of commercial and transactional banking services. corporates need more sophisticated risk . a separate infrastructure business group has been established within the corporate banking group. Since each corporate engagement also offers opportunities on the retail side of the business. The Axis Bank target market ranges from large. The Bank remains committed to developing long-term strong relationships with its customers and ensuring that they have access to high-quality service as well as the full suite of financial solutions to help achieve their financial objectives.Foreign Exchange and Derivatives. transactional services. TREASURY: Within this business. the Bank has restructured Retail Banking into two groups namely Mass and Mass Affluent. cash management. products anchored in the Retail SBUs also form a part of the corporate marketing effort. providing customers the facility to hold their investments in electronic form. In order to achieve the objective of becoming more customer-centric. while the Affluent Segment owns clientele defined as affluent. comprising customers in the wealth and private banking space. It is recognised as a leading provider of cash management and transactional banking solutions to corporate customers. The Bank aims to increase its market-share in India's expanding financial services industry through continued emphasis on building a strong retail franchise. trade finance. structured finance and syndication services for debt and equity. With the liberalisation of the financial markets in India.customers. mass-market customers. rather than product-centric. blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporates and agri-based businesses. stock exchange members and banks. including credit. and Equities. Local Currency Money Market & Debt Securities. etc. trade services. Growth strategies have focused on building profitable relationships across various customer segments. The bank is also a leading provider of structured solutions. New customer acquisition and relationshipdeepening constitute the two-pronged strategy for growth. and Affluent segments. the bank has three main product areas . the Axis Bank has made significant inroads into a number of leading Indian corporates including multinationals. For these customers. which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. The Mass and Mass Affluent Segment owns. mutual funds. CORPORATE BANKING SERVICES: The Axis Bank Corporate Banking franchise aims to provide a wide array of products across several customer segments. Based on its superior product delivery/service levels and strong customer orientation. In order to leverage growth opportunities offered by India's infrastructure sector.

99% over the year. 32. The Treasury business is responsible for managing the returns and market risk on this investment portfolio. thus increasing 24. In foreign exchange business. To comply with statutory reserve requirements.60% over the year.321. During the year. INTERNATIONAL BANKING: The International Banking strategy of the Bank revolves around leveraging its relations with corporates in India while providing banking solutions at overseas centres. rising 29. 14.63 crores against Rs. wealth management.821.35 crores last year. sourcing of current accounts is one of the key enablers for the growth of the balance sheet. The Bank's . the bank is required to hold 25% of its deposits in government securities. 24. which manages the Bank's funds across geographies. Thus. the Bank has increased its presence in the inter-bank markets and despite the competitive environment. covering both domestic and global markets. central and state government ministries and undertakings. 217. institutions.167. The Bank has played a key role in the sovereign debt markets during the year and booked trading gains from the government securities portfolio of Rs. corporate banking and treasury solutions. The Bank enlarged its business with financial institutions during the year raising foreign currency resources to support customer trade business across the borders and increasing trade finance activity. The crossselling of transactional banking products have also succeeded in enlarging the customer base and growing current account balances.658. BUSINESS BANKING: Business Banking initiatives have consistently focused on procuring low-cost funds by offering a range of current account products and cash management solutions across all business segments covering corporate. advice and product structures.75 crores on 31 March 2010. current account balances for the Bank stood at Rs. the Bank posted a vigorous growth in both customer-based and proprietary Treasury business. current account balances grew from Rs. As on 31 March 2010. During the year. These and fine pricing on various treasury products are provided through the bank's Treasury team. grew the customer forex (merchant) business during 2009-10 by 36% year-on-year. 302. as well as small and retail business customers. The product offerings at overseas centres cover a wide spectrum of businesses involving retail banking. against Rs. On a daily average basis. The Bank also participated actively in risk-participation business overseas with several reputed international banks. The Axis Bank has an integrated Treasury. the Bank became a member of the NSE on the Interest Rate Futures segment and used the Interest Rate Swap market for proprietary trading as well as for hedging its balance sheet risks. 18.35 crores on 31 March 2009 to Rs. The Bank has a stringent process of setting up interbank exposure limits and a strong monitoring process to react quickly to changing markets and economic conditions.management information.74 crores.61 crores on 31 March 2009.

international presence spans the major financial hubs in Asia with branches at Singapore. . and representative offices at Shanghai and Dubai. Hong Kong and DIFC-Dubai enable the Bank to partner with Indian corporate doing business globally. Dubai. the Dubai Representative Office and the arrangement with GCC based banks and exchange houses provide access to the NRI population. AXIS BANK PRODUCT BOUQUET :                        Current Accounts Saving Accounts Easy access through various channels Term Deposits Locker Facilities Financial Advisory Services Online Trading Wealth Advisory Services Depository Services Priority Banking Service Salary Account Mohur Pure Gold Bars Retail Loans Nri Services Travel Currency Card Remittance Card Resident Foreign Currency (RFC) Account Trust/Ngo Saving Account Cash Management Services De-mate Account Gift Card Credit Card Debit Card etc. besides strategic alliances with banks and exchange houses in the Gulf Co-operation Council (GCC) countries. The Shanghai Representative Office apart from providing presence in the key market of China fulfils the regulatory requirement of establishing a branch in course of time to enhance the ability of the Bank to tap business opportunities emanating from that region. Hong Kong and DIFC. While branches at Singapore.

 Continuous technology up gradation while maintaining human values. Success through Teamwork. . Periodic Customer Service Audits. "Smile. VISION AND CORE VALUES OF AXIS BANK:  MISSION :  Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele.  VISION: “To be the preferred financial solutions provider excelling in customer delivery through insight. Integrity and People. empowered employees and smart use of technology.”  CORE VALUES:  o o o   Customer Satisfaction through: Providing quality service effectively and efficiently. it enhances your face value" is a service quality stressed on.MISSION.  Efficiency and effectiveness built on ethical practices.  Progressive globalization and achieving international standards. Maximizations of Stakeholder value.

 OPPORTUNITIES: • • • • Growing Indian banking sectors. . Not been fully able to position it-self correctly.  THREATS: • • • • Advent of MNC banks Foreign banks Govt. Knowledge of Indian market  WEAKNESS: • • • Not having good image. Dissatisfied Customers. High level of services. banks Future market trends. Market capitalization is very low. People are becoming more service oriented. In the global market.SWOT ANALYSIS OF AXIS BANK:  STRENGTHS: • • • • Brand Name Support of various promoters.

Capital market: This segment is targeted on the long term needs of the individual as well as of industries. Working woman). For the government sector banks: High level of service quality and through product innovation.Age (Senior citizens. To get the 175 Crore Capital investments Retail banking market: This segment is for the retail investor and provide them short term financial credit for their personal. Occupation (Business persons. To get 125 Crore Corporate investments. and private. Service oriented. AXIS not anywhere near but has created a different set of segment people who believe in the higher set of services. Internet banking (i-connect.  Targeting Strategy:  Target market: • • • Corporate banking market: This market target the industries and fulfil their financial needs. Service level is somewhat same in the future otherwise these banks may create a problem. travel currency card etc.  Positioning Strategy:  Axis bank has positioned itself as a bank which gives higher standard of services through product innovation for the diverse need of individual & corporate clients. Product innovation . household needs.). Salaried class-both Govt. mobile refill. Minor).To get the 200 Crore retail investment. Psychographic variables: Lifestyle-The people who believes in modern banking with higher set of services i.  Segmentation Strategy: • • Demographics variables: Location (Metros & divisional cities).Business and Marketing Strategy Of Axis Bank:  Competitive Strategy: • • • For the private sector banks: Differentiation on the basis of area coverage and restricted Reach. So they want to highlight following points in their positioning statement: Customer centric. Axis got advantage because of Product Innovation. For the international banks: Differentiated itself on the base of the reach and coverage to the people.e. Level of service is the same.

L. M.B. Singhal J. Agrawal N. Subbiah K.BOARD OF DIRECTORS: The Bank has 13 members on the Board “Mrs. N. Kaundinya Director S. Vaish M. Varma R. H. R. V. Mathur P. R. B. Prithviraj Director Director Director V. Patil Managing Director & CEO Deputy Managing Director Director Director Director Rama Bijapurkar Director R. S. J. C. Shikha Sharma” is the CEO and Managing Director of the Bank. The members of the Board are: Adarsh Adarsh Kishore Chairman Shikha Sharma M. Oza Director Company Secretary Table 1: Board of directors of Axis Bank . B.

Law President .Infrastructure Business President . Srinivasan Somnath Sengupta Snehomoy Bhattacharya S.) Executive Director (Corporate Banking) Executive Director and CFO Executive Director President & Chief Compliance Officer President . Mukherjee Vinod George M. K. S.THE CORE MANAGEMENT TEAM: S.Retail Banking (Liabilities) President .Large Corporates & International Banking President .North Zone V. Gopalakrishnan Manju Srivatsa Bapi Munshi C.Finance & Accounts and Investor Relations President . K. Bajaj P. Gupta V. V.Business Banking President .Retail Banking (Assets) President & Chief Risk Officer President .Wholesale Banking Operations President . K. K. Babu Joseph Sonu Bhasin Sanjeev K. Supekar B. SME and Agri.Advances President .Mid Corporates President . Subramanian Rajagopal Srivatsa S. Bammi . Bajaj Sidharth Rath R. Chakrabarti Executive Director (Retail Banking.IT and Retail Banking Operations President & Chief Audit Executive President .

N. 100 crore.59 crores. The Bank was set up with a capital of Rs.S. where Government has continuing obligations and commitments to the investors. 359. has been promoted by the largest and the best Financial Institution of the country. which it will uphold. The Government of India has currently appointed Shri K. 1. 6. In accordance with the Act. the Undertaking specified as UTI I has been transferred and vested in the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI).West Zone President .60% ARS Bonds with a Unit Capital of over Rs. P. with a view to encourage savings and investment. 14167. SUUTI – Shareholding : Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act. Nandi S. Mitra C. In December 2002.5 crore each. UTI-I and UTI-II with effect from 1st February 2003.East Zone President .5 crore and GIC and its four subsidiaries contributing Rs. K. with UTI contributing Rs.01 crores as on 31 March 2009. 7. UTI. The paid up capital of the Bank as on 31 March 2010 rose to Rs. Rangarajan President . the UTI Act. LIC . 1963. 1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act. 405. Prithviraj as the Administrator of the Specified undertaking of UTI. 115 crore. 2002 by the Parliament.75% US-64 Bonds. K.I. who manages assured return schemes along with 6.17 crores from Rs. paving the way for the bifurcation of UTI into 2 entities.Rs. The shareholding pattern of the Bank as of 31 March 2010 is stated below: . to look after and administer the schemes under UTI .South Zone Table 2: Core management team of Axis Bank Promoters: Axis Bank Ltd.

No.68 5.33% 19. 8.73% 2. 33.Sr.36% customer assets *** Table 4: Key performance indicators of Axis Bank . 11.63 lacs 2008 . 10.11 per employee** crores Net Non performing assets as a percentage of net 0. 3.89% 3.75% 19. 10.27 4. 11. Name Of Shareholder Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I) Life Insurance Corporation of India General Insurance Corporation and four PSU Insurance Companies Overseas Investors including FIIs/ OCBs/ NRIs Foreign Direct Investment (GDR issue) Other Indian Financial Institutions/ Mutual Funds/ Banks Others % Of Paid Up Capital 24.59% 2.30% 3. Total 12.95% 1.34 100.00 2.09 8. 1.02 lacs Rs.67% Rs.60 crores 0. 6.27 4.37 7.00 Table 3: Shareholding pattern of Axis Bank KEY PERFORMANCE INDICATORS Interest Income as a percentage of working funds* Non-Interest Income as a percentage of working funds Net Interest Margin Return on Average Net Worth Operating Profit as a percentage of working funds Return on Average Assets Profit per employee** 2009 .93% 2.62% 3. 10.48% 1.44% Rs.10 7.07 7.35% Business (Deposits less inter bank deposits + Advances) Rs.

31 420.822.72% 27.63 0.21 2. provisions and 5.84 Provision for Tax 1.22 180.520.72 Transfer to Capital Reserve 223.49 3.22 33.12 20.822.12 24.167.62% 34.343.84% 47.815.556.86 2.87 tax 188.004.647.52 Proposed Dividend 567.40 3.78 822.36 Net Profit 2.84 Transfer to Statutory Reserve 628.77 16.85 5.02 PARTICULARS Deposits Out of which • Savings Bank Deposits • Current Account Deposits Advances Out of which • Retail Advances • Non-retail Advances Total Assets/Liabilities Net Interest Income Other Income Out of which • Trading Profit (1) • Fee & other income Growth 20.88 146.20% 37.38% 31.051.336.669.896.05 3.76% 36.94% 29. in crores) 2008 .61 81.514.374.29% 35.97% 23.50% 22. depreciation 3.60% 27.19 1.861.34 Table 5: Financial performance of Axis Bank .523.19% 39.94% 35.22 Surplus carried over to Balance Sheet 1.80 32.11 141.079.88 373.722.06 Transfer to Investment Reserve 14.THE FINANCIAL PERFORMANCE OF THE AXIS BANK as on 31st March 2010: (Rs.38 3.53 Appropriations : 453.913.54 Profit before depreciation.84% 38.51% 52.99 147.90% 2.90 83.504.80% 30.389.686.32 969.13% 29.40 25.83 939.821.66 Depreciation 234.78 65.74 104.474.92 Transfer to General Reserve 0.09 2009 – 10 117.300.55 Operating Expenses excl.475.123.45 794.68 Other Provisions & Write offs 1.945.21% 119.90% 24.51% 38.

Chapter-3 INDUSTRY PROFILE .

700 Cores of assets under management. . Canara bank Asset Management floated by Canara Bank and SBI Funds Management floated by the State Bank of India are the largest of these. which.700 bn collected from more than 20 million investors. The first scheme launched by UTI was Unit Scheme 1964.e. Earlier the Indian Mutual Fund industry was dominated by the Unit Trust of India which has a total corpus of Rs. HISTORY OF INDIAN MUTUAL FUNDS INDUSTRY: The mutual fund industry in India started in 1963 with the formation of Unit Trust of India. The UTI has many funds/schemes in all categories i. The second largest categories of mutual funds are the ones floated by nationalized banks. GIC AMC floated by the General Insurance Corporation and Jeevan Bima Sahayog AMC floated by the LIC are some of the other prominent ones. income etc. balanced.350 bn. at the initiative of the Government of India and Reserve Bank India.200 bn. is true for all practical purposes. 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. Most of its investors believe that the UTI is government owned and controlled. which is a balanced fund.INDUSTRY PROFILE THE INDIAN MUTUAL FUND INDUSTRY: The largest categories of Mutual Funds are the ones floated by the private sector and by Foreign Asset Management Companies. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. First Phase – 1964-87: Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. The history of mutual funds in India can be broadly divided into four distinct phases.6. The largest of these are Prudential ICICI AMC and Birla Sun Life AMC. equity. while legally incorrect. The aggregate corpus of assets managed by this category of AMCs is in excess of Rs. with some being open-ended and some being closed-ended.200 bn. The Unit Scheme 1964 commonly referred to as US 64. At the end of 1988 UTI had Rs. The aggregate corpus of funds managed by this category of AMCs is about Rs. is the biggest scheme with a corpus of about Rs. UTI was floated by financial institutions and is governed by a special Act of Parliament.

UTI.000 Cores of assets under management and with the setting up of a UTI Mutual Fund. the mutual fund industry had assets under management of Rs.004 Cores. SBI Mutual Fund was the first non. following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. conforming to .541 Cores of assets under management was way ahead of other mutual funds. LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. It is registered with SEBI and functions under the Mutual Fund Regulations. giving the Indian investors a wider choice of fund families. The Unit Trust of India with Rs.44. under which all mutual funds. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The number of mutual fund houses went on increasing.Second Phase – 1987-1993 (Entry of Public Sector Funds): 1987 marked the entry of non. the assets of US 64 scheme. PNB. Bank of Baroda Mutual Fund (Oct 92). Punjab National Bank Mutual Fund (Aug 89). At the end of 1993. 1. representing broadly.UTI Mutual Fund established in June 1987 followed by Canara Bank Mutual Fund (Dec 87).29.21. Third Phase – 1993-2003 (Entry of Private Sector Funds): With the entry of private sector funds in 1993. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.805 Cores. BOB and LIC.835 crores as at the end of January 2003.76. Also. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. Fourth Phase – since February 2003: In February 2003. with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. 1993 was the year in which the first Mutual Fund Regulations came into being. a new era started in the Indian mutual fund industry. sponsored by SBI. there were 33 mutual funds with total assets of Rs. As at the end of January 2003. Indian Bank Mutual Fund (Nov 89). The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The Specified Undertaking of Unit Trust of India. public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). 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. Bank of India (Jun 90).47. assured return and certain other schemes. except UTI were to be registered and governed. The second is the UTI Mutual Fund Ltd. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.

2004. The net asset value (NAV) of mutual funds in India declined when stock prices started falling in the year 1992. There was rather no choice apart from holding the cash or to further continue investing in shares. One more thing to benoted. the market regulations did not allow portfolio shifts into alternative investments. Funds now have shifted their focus to the recession free sectors like pharmaceuticals. .the SEBI Mutual Fund Regulations.153108 Cores under 421 schemes. the mutual fund industry has entered its current phase of consolidation and growth. which averaged at less than Rs100bn per annum over five-year period spanning 1993-98 doubled to Rs210bn in 1998-99. The 1992 stock market scandal. Those days. there were 29 funds. Total collection for the financial year ending March 2000 reached Rs. and with recent mergers taking place among different private sector funds. As at the end of September. FMCG and technology sector. The performance of mutual funds in India suffered qualitatively. Funds performances are improving. In the 2000 mobilization had exceeded Rs300bn. which manage assets of Rs. Funds collection. since only closed-end funds were floated in the market. STRUCTURE OF MUTUAL FUND: The Mutual Funds are structured in two forms: Company form and Trust form.450bn. the investors disinvested by selling at a loss in the secondary market. the losses by disinvestments and of course the lack of transparent rules in the whereabouts rocked confidence among the investors.

1. The sponsor initiates the idea to set up a mutual fund. It could be a financial services company. Transfer Agent 4. Custodian and Depositors 4. FUND SPONSOR: What a promoter is to a company. The Trust is either managed by a Board of Trustees or by a Trustee Company. Distributor 1. a bank or a financial institution. default-free dealings and a general reputation for fairness. It could do it alone or through a joint venture. such as on capital and profits.4. Company Form: These forms of mutual funds are more popular in US. the sponsor has to obtain a license from SEBI. It could be Indian or foreign.2. track record (at least five years in financial services). Fund Sponsor 2.3. Brokers 4. . Trust 3.  Trust Form: In India. For this. Trustee of one mutual fund cannot be a trustee of another mutual fund. The sponsor must have been profit making in at least 3 years of the above 5 years. mutual funds are organized as Trusts. Asset Management Company 4. it has to satisfy certain conditions. Other Fund Constituents 4. a sponsor is to a mutual fund. Unit Trusts – Constituents: A Mutual Fund is set up in the form of a Trust which has the following constituents:1. In order to run a mutual fund in India. There must be at least 4 members in the Board of Trustees and at least 2/3 of the members of the board must be independent.

and their job is to protect the interests of the unit holders. This sometimes meant meeting shortfalls from their own pockets. which subsequently. preferably. helps. invest in technology and continuously offer high service standards to the investors. choose sponsors who are good money managers.e. and reports periodically to them on how the business being run. whom it appoints. not have any association with the sponsor. Like the company promoter. In order to ensure they are impartial and fair. Trustees float and market schemes.it can hire the best talent. TRUSTEES: Trustees are like internal regulators in a mutual fund. i. The sponsor should inspire confidence in you as a money manager and. leaving money management and other such nitty-gritty to the other constituents. The trust deed is registered under the Indian Registration Act. They check if the AMCs investments are within defined limits and whether the fund‟s assets are protected. Trustees can be held accountable for financial irregularities in the mutual fund. the sponsor takes big-picture decisions related to the mutual fund. In the days of assured return schemes. so long as it is complemented by good fund management. TRUST: The Mutual Fund is constituted as a Trust in accordance with the provisions of the Indian Trusts Act. Now that assured return schemes are passed. 1908. Financial muscle. All things considered.. seeks their approval for the work it does.The Sponsor appoints the Trustees. 1882 by the Sponsor. and secure necessary approvals. SEBI rules mandate that at least two-thirds of the trustees be independent. be profitable. sponsors also had to fulfill return promises made to the unit holders. as money is then not an impediment for the mutual fund. who have a reputation for fair business practices and who have deep pockets. as the government did for UTI. The Trust appoints the Trustees who are responsible to the investors of the fund. 2. Trustees appoint the AMC. Trustees are appointed by the sponsors. such bailouts won‟t be required. and can be either individuals or corporate bodies. Custodian and the AMC with the prior approval of SEBI and in accordance with SEBI Regulations. .

The AMC is usually a private limited company in which the sponsors and their associates or joint venture partners are the shareholders.  All Mutual Fund Schemes floated by the AMC have to be approved by the Trustees. The people in the AMC who should matter the most to you are those who take investment decisions. It is the AMC that employs fund managers and analysts. which spells out the functions of the AMC. and other personnel.  Trustees can seek information from the AMC regarding the operations and compliance of the mutual fund.  Trustees must furnish to the SEBI.  Trustees must ensure compliance with SEBI Regulations. ASSET MANAGEMENT COMPANY (AMC): An AMC is the legal entity formed by the sponsor to run a mutual fund. The trustees sign an investment agreement with the AMC. generally referred to as the Chief . There is the head of the fund house.  Trustees must ensure that the AMC has systems and procedures in place.Rights of the Trustees:  Trustees appoint the AMC in consultation with the sponsor and according to the SEBI Regulations.  Trustees review and ensure that the net worth of the AMC is according to the stipulated norms. Obligations of the Trustees:  Trustees must ensure that the transactions of the mutual fund are in accordance with the trust deed.  Trustees must ensure due diligence on the part of AMC in the appointment of constituents and business associates. 3. on half yearly basis a report on the activities of the AMC. It is the AMC that handles all operational matters of a mutual fund from launching schemes to managing them to interacting with investors. every quarter.

if a fund house has two schemes.10 crores at all times. and fund managers. the balance has to be met by the sponsor. Although these people are employed by the AMC. . Regulatory requirements for the AMC:  Only SEBI registered AMC can be appointed as investment managers of mutual funds. Under him comes the Chief Investment Officer (CIO). the fee is 1% of the corpus. sectors and companies. Obligations of the AMC:  Investments have to be according to the investment management agreement and SEBI regulations.25+2) as fund management fee that year. If an AMCs expenses for the year exceed what it earns as fund management fee from its schemes. who track markets.3. on over Rs. partly or wholly. the AMC will earn Rs. its you. who shapes the fund‟s investment philosophy. Again. Each scheme pays the AMC an annual „fund management fee‟. If a scheme‟s corpus is up to Rs.Executive Officer (CEO).  The 4th schedule of SEBI Regulations spells out rights and obligations of both trustees and AMCs. other than that of asset management.100 crores. which could well turn into an exercise in cutting corners. who pays their salaries. the unit holders. financial strength comes into play: a cash-rich sponsor can easily pump in money to meet short falls. while a sponsor with less financial clout might force the AMC to trim costs.25 crore (1.  AMCs cannot indulge in any other business.  At least half of the members of the Board of an AMC have to be independent.  An AMC cannot be an AMC or Trustee of another Mutual Fund. So. who manages its schemes.200 crores respectively.25% of its corpus a year.100 crores and Rs.100 crores it pays 1. They are assisted by a team of analysts.  AMC must have a minimum net worth of Rs. which is linked to the scheme size and results in a corresponding drop in your return. with a corpus of Rs.

Conditions under which an AMC can be taken over: SEBI approval is required for the change of ownership and unit holders have to be informed of the takeover. 4. Scheme take over: If an existing mutual fund scheme is taken over by another AMC. The two mutual funds continue to exist. CUSTODIAN: A custodian handles the investment back office of a mutual fund.  AMCs have to make the necessary statutory disclosures on portfolio. offer for sale. This condition.1. For example. The sponsor of a mutual fund cannot act as a custodian to the fund. it is called as scheme take over. Its responsibilities include receipt and delivery of securities. NAV and price to the investors. Trustee and SEBI approval and notification of the unit holders are required for scheme take over. ensures that the assets of a mutual fund are not in the hands of its sponsor.  AMCs have to provide full details of the investments by employees and Board members in all cases where the investment exceeds Rs. It also track corporate actions like bonus issues. but it cannot service Deutsche Mutual Fund.  AMCs have to submit detailed quarterly reports on the working and performance of the mutual fund. Other Fund Constituents: 4. Deutsche Bank is a custodian. its mutual fund arm. formulated in the interest of investors. .1 lakh.  AMCs cannot take up any activity that is in conflict with the activities of the mutual fund. right offers. distribution of dividends and segregation of assets between the schemes. The actions of its employees and associates have to be as mandated by the trustees. collection of income. buy back and open offers for acquisition. Restrictions on the AMC:  AMCs cannot launch a scheme without the prior approval of the trustees.

as long as it is prompt and efficient in servicing you.  In some cases.2. are responsible for the investor servicing functions. Karvy and CAMS are the more popular ones. 4.3. in addition to registrars.  Distributors appoint agents and other mechanisms to mobilize funds from the investors. Some fund houses handle such functions in-house. 4.4. provide investment managers with research reports. Most mutual funds.4.  Act as an important source of market information. .  The commission received by the distributors is split into initial commission which is paid on mobilization of funds and trail commission which is paid depending on the time the investor stays with the fund. This includes issuing and redeeming units. Others outsource it to the Registrars. also have investor service centers of their own in some cities. sending fact sheets and annual reports. REGISTRAR OR TRANSFER AGENTS: Registrars. It doesn‟t really matter which model your mutual fund opt for. DISTRIBUTORS: Role of Selling and Distribution Agents:  Selling agents bring investor‟s funds for a commission.  Brokers are the registered members of the stock exchange.  Banks and post offices also act as distributors. BROKERS: Role of Brokers in a Mutual Fund:  They enable the investment managers to buy and sell securities. also known as the transfer agents.  They charge a commission for their services.

ONGC and Infosys. real estate. and precious metals). thus by pooling money together in a mutual fund. by minimizing risk & maximizing returns. the basic understanding of stocks and bonds. Stocks are considered to be the most common owned investment traded on the market. professionally managed basket of securities at a relatively low cost. but the majority of mutual funds invest in stocks and/or bonds. When you invest in a mutual fund. Stocks: Stocks represent shares of ownership in a public company. The mutual fund will have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds). . WHAT IS MUTUAL FUND: A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. and in return you can receive interest on your invested amount. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified. Bonds: Bonds are basically the money which you lend to the government or a company. But the biggest advantage to mutual funds is diversification. Examples of public companies include Reliance. investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own.ABOUT MUTUAL FUND AND ITS VARIOUS ASPECTS: Before we understand what is mutual fund. it‟s very important to know the area in which mutual funds works. Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient and also easy to invest in. Bonds are considered to be the most common lending investment traded on the market. The flow chart below describes broadly the working of a mutual fund. which is back over predetermined amounts of time. you are buying units or portions of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund. There are many other types of investments other than stocks and bonds (including annuities.

This portfolio diversification ensures risk minimization. The income earned through these investments and the capital appreciations realized by the schemes are shared by its unit holders in proportion to the number of units owned by them. 1996. By pooling their assets through mutual funds. low transaction cost. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. diversified portfolios & tax benefits. The advantage of Mutual Funds to the investors is professional managed. transparency. which undertakes informed investment decisions & provides consequential benefits of professional expertise. Since small investors generally do not have adequate time. professionally managed basket of securities at a relatively low cost. The interest of the investors is protected by the SEBI.WORKING OF MUTUAL FUND: The flow chart below describes broadly the working of a Mutual Fund. This principle has been effective worldwide as more & more investors are going the mutual fund way. Mutual funds are governed by SEBI (Mutual Funds) regulations. investors achieve economies of scale. A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. experience & resources for directly accessing the capital market. The criticality such a measure comes in when you factor in the fluctuations that characterize stock markets. liquidity. These could range from shares to debentures to money market instruments. which acts as a watchdog. knowledge. A collected corpus can be used to procure a diversified portfolio indicating greater returns has also create economies of scale through cost reduction. . they have to rely on an intermediary. well regulated. Thus a mutual fund is the most suitable investment for the common person as it offers an opportunity to invest in a diversified.

Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. These do not have a fixed maturity.TYPE OF MUTUAL FUND SCHEMES: Mutual fund schemes may be classified on the basis of its structure and its investment objective.  Based on their structure:  Open-ended Funds: An open-end fund is one that is available for subscription all through the year. . The key feature of open-end schemes is liquidity.

historically. The fund is open for subscription only during a specified period. At the same time. Index Funds: In this case a key stock market index. generally smoothens out in the long term. equities have outperformed all asset classes in the long term. investment in equity funds should be considered for a period of at least 3-5 years. Closed-ended Funds: A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. iii. even losses. In order to provide an exit route to the investors. short term fluctuations in the market. Their portfolio mirrors the benchmark index both in terms of composition and individual stock weight ages. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. ii.  Based on their investment objective:  Equity funds: These funds invest in equities and equity related instruments. However. Equity Diversified Funds: 100% of the capital is invested in equities spreading across different sectors and stocks. like BSE Sensex or Nifty is tracked. With fluctuating share prices. such funds can yield great capital appreciation as. . Hence. They are open for sale or redemption during pre-determined intervals at NAV related prices. such funds show volatile performance.  Interval Funds: Interval funds combine the features of open-ended and close-ended schemes. Dividend Yield Funds: it is similar to the equity diversified funds except that they invest in companies offering high dividend yields. It can be further classified as: i. thereby offering higher returns at relatively lower volatility. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor. some close ended funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices.

v. Floaters invest in debt instruments which have variable coupon rate. they invest exclusively in fixed-income instruments like bonds. debentures. ELSS: Equity Linked Saving Scheme provides tax benefit to the investors. As a result.iv.A banking sector fund will invest in banking stocks. construction.  Balanced fund: Their investment portfolio includes both debt and equity. cements sectors etc.  Debt fund: They invest only in debt instruments.e.g. . Therefore. ii) iii) . Sector Funds: Invest 100% of the capital in a specific sector. vi. It can be further classified as: i) Debt-Oriented Funds: Investment below 65% in equities. and money market instruments such as certificates of deposit (CD). . Balanced funds are the ideal mutual funds vehicle for investors who prefer spreading their risk across various instruments. and are a good option for investors averse to idea of taking risk associated with equities. -An infrastructure fund invests in power. Thematic Funds: Invest 100% of the assets in sectors which are related through some theme . ii) Equity-Oriented Funds: Invest at least 65% in equities. Floating Rate Funds: Invest in short-term debt papers.g. e. Put your money into any of these debt funds depending on your investment horizon and needs. commercial paper (CP) and call money. on the risk-return ladder. they fall between equity and debt funds. a large portion being invested in call money market. remaining in debt. Gilt Funds ST: They invest 100% of their portfolio in government securities of and T-bills. It can be further classified as: i) Liquid Funds: These funds invest 100% in money market instruments. Government of India securities.

derivatives and money markets. in the absence of arbitrage opportunities. v) vi) vii) viii) . such funds invest a major portion of the portfolio in long-term debt papers. Higher proportion (around 75%) is put in money markets. Funds are allocated to equities. Gilt Funds LT: They invest 100% of their portfolio in long-term government securities. FMPs: Fixed monthly plans invest in debt papers whose maturity is in line with that of the fund. Income Funds LT: Typically. MIPs: Monthly Income Plans have an exposure of 70%-90% to debt and an exposure of 10%-30% to equities.iv) Arbitrage Fund: They generate income through arbitrage opportunities due to mispricing between cash market and derivatives market.

The investor gets fewer units when the NAV is high and more units when the NAV is low. This is called as the benefit of Rupee Cost Averaging (RCA). which is recommended to liquidate your mutual funds corpus after you see a good bull market to protect your investment. . at a fixed interval.  Systematic Transfer Plan (STP): The way STP works is.INVESTMENT STRATEGIES OF MUTUAL FUNDS:  Systematic Investment Plan (SIP): Under SIP a fixed sum of your money is taken away from your Bank Accounts and invested in a Mutual fund. You should redeem your units in mutual funds every month and get it deposited in your Bank accounts . all your money is actually invested in a Mutual funds itself (probably Debt) and units are sold every month and its invested in another Mutual fund (probably Equity) or vice versa . Payment is made through post dated cheques or direct debit facilities. to an equity scheme of the same mutual fund.  Systematic Withdrawal Plan (SWP): If someone wishes to withdraw his/her money from a mutual fund then he/she can withdraw a fixed amount each month. Under this an investor invest in debt oriented fund and give instructions to transfer a fixed sum. it‟s called SWP (systematic Withdrawal Plan) .

A Systematic Investment Plan (“SIP”) that works on the concept of Rupee Cost Averaging (“RCA”) might help mitigate this risk. This is true. may it be big corporations or smaller mid-sized companies.  MARKET RISK: Sometimes prices and yields of all securities rise and fall. This is known as Market Risk. Higher the risk greater the returns/loss and lower the risk lesser the returns/loss. This credit risk is measured by independent rating agencies like CRISIL who rate companies and their . Hence it is up to you. the investor to decide how much risk you are willing to take.  CREDIT RISK: The debt servicing ability (may it be interest payments or repayment of principal) of a company through its cash flows determines the Credit Risk faced by you.RISKS ASSOCIATED WITH MUTUAL FUNDS: The most important relationship to understand is the risk-return trade-off. In order to do this you must first be aware of the different types of risks involved with your investment decision. Broad outside influences affecting the market in general lead to this.

Equity might be negatively affected as well in a rising interest rate environment. This happens when inflation grows faster than the return on your investment. It simply means that you must spread your investment across different securities (stocks. but what is it? Diversification the nuclear weapon in your arsenal for your fight against risk. A lot of times people make conservative investment decisions to protect their capital but end up with a sum of money that can buy less than what the principal could at the time of the investment. . bonds. A well-diversified portfolio might help mitigate this risk. Inflation is the loss of purchasing power over time. If interest rates rise the prices of bonds fall and vice versa. This kind of a diversification may add to the stability of your returns. They can create a favourable environment for investment or vice versa. textile. money market instruments.  INTEREST RATE RISK: In a free market economy interest rates are difficult if not impossible to predict.  LIQUIDITY RISK: Liquidity risk arises when it becomes difficult to sell the securities that one has purchased. information technology etc.  POLITICAL RISK: Changes in government policy and political decision can change the investment environment. staggering of maturities as well as internal risk controls that lean towards purchase of liquid securities. Inflation. You have been reading about diversification above. A well-diversified portfolio with some investment in equities might help mitigate this risk.  INFLATION RISK: Things you hear people talk about “Rs. A well-diversified portfolio might help mitigate this risk. 100 today is worth more than Rs. The root cause. Liquidity Risk can be partly mitigated by diversification. An „AAA‟ rating is considered the safest whereas a „D‟ rating is considered poor credit quality.) and different sectors (auto.paper. real estate.). 100 tomorrow”. Changes in interest rates affect the prices of bonds as well as equities. fixed deposits etc.

 Convenient Administration: Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries. delayed payments and follow up with brokers and companies. backed by a dedicated investment research team that analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme.  Return Potential: Over a medium to long-term.  Diversification: Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors. Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities. . This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. You achieve this diversification through a Mutual Fund with far less money than you can do on your own.ADVANTAGES OF MUTUAL FUND:  Professional Management: Mutual Funds provide the services of experienced and skilled professionals. Mutual Funds save your time and make investing easy and convenient.

the proportion invested in each class of assets and the fund manager's investment strategy and outlook. regular withdrawal plans and dividend reinvestment plans.  Well Regulated: All Mutual Funds are registered with SEBI and they function within the provisions of strict regulations designed to protect the interests of investors.  Transparency: You get regular information on the value of your investment in addition to disclosure on the specific investments made by your scheme.  Flexibility: Through features such as regular investment plans.  Choice of Schemes: Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.  Affordability: Investors individually may lack sufficient funds to invest in high-grade stocks. The operations of Mutual Funds are regularly monitored by SEBI. the units can be sold on a stock exchange at the prevailing market price or the investor can avail of the facility of direct repurchase at NAV related prices by the Mutual Fund. . Low Costs: Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits of scale in brokerage. you can systematically invest or withdraw funds according to your needs and convenience. the investor gets the money back promptly at net asset value related prices from the Mutual Fund.  Liquidity: In open-end schemes. A mutual fund because of its large corpus allows even a small investor to take the benefit of its investment strategy. In closed-end schemes. custodial and other fees translate into lower costs for investors.

like the S&P 500. some mutual funds charge high sales commissions. And some funds buy and trade shares so often that the transaction costs add up significantly. around 75% of all mutual funds fail to beat the major market indexes. By holding a large number of different investments. for which a commission is paid only when you buy and sell. mutual funds tend to do neither exceptionally well nor exceptionally poorly. .  Dilution: Although diversification reduces the amount of risk involved in investing in mutual funds. it can also be a disadvantage due to dilution. the mutual fund itself would not double in value because that security is only one small part of the fund's holdings.  No Insurance: Mutual funds. losses can occur.5% per year). credit unions.  Fees and Expenses: Most mutual funds charge management and operating fees that pay for the fund's management expenses (usually around 1. For example. Some of these expenses are charged on an ongoing basis. although regulated by the government. and it is possible (although extremely unlikely) that you could even lose your entire investment. are not insured against losses.DISADVANTAGE OF MUTUAL FUND: There are certainly some benefits to mutual fund investing. not mutual funds. if a single security held by a mutual fund doubles in value. but you should also be aware of the drawbacks associated with mutual funds. and savings and loans. In fact. and a growing number of critics now question whether or not professional money managers have better stock-picking capabilities than the average investor. on average. and redemption fees. The Federal Deposit Insurance Corporation (FDIC) only insures against certain losses at banks. In addition. unlike stock investments.  Poor Performance: Returns on a mutual fund are by no means guaranteed. That means that despite the risk reducing diversification benefits provided by mutual funds.0% to 1. 12b-1 fees.

 Loss of Control: The managers of mutual funds make all of the decisions about which securities to buy and sell and when to do so. most mutual funds (called openended funds) cannot be bought or sold in the middle of the trading day. after they've calculated the current value of their holdings. . the tax consequences of a decision by the manager to buy or sell an asset at a certain time might not be optimal for you.  Trading Limitations: Although mutual funds are highly liquid in general. You can only buy and sell them at the end of the day. You also should remember that you are trusting someone else with your money when you invest in a mutual fund. For example. This can make it difficult for you when trying to manage your portfolio.

PART-2 Chapter-4 LITERATURE REVIEW .

Mutual fund distribution channel. This section explains why to use correlation and what are the situations in which correlation can be used.Literature Review The literature review includes the Academic Books.Sultan Chand Publication The information regarding the statistical tools and their limitations in different fields the research is given in this section.  “Kothari C.  Economic & political weekly2 April-2010 – It helped me to know about the trends of mutual fund industry.In this I gathered the information about the various parties involved in mutual fund transaction. Internet Access.  Pandian Punitawathy6: Security Analysis & portfolio management: This book helped in understanding the concept of different indices for portfolio evaluation. .C.R.  ICFAI reader1.7.  “Gupta S. and what does correlation means.M.  Schaums: Statistical Methods4.  Fisher & Jordan5: Security Analysis & Portfolio management-this book has been used to calculate the indices on which basis the ranking has been given.  Beri G. what are the different types of research designs. Journals.8” The information regarding the basics of research and research methodology . Some data regarding this has been taken from it.Marketing Research 3rd edition: This book helped in understanding the different research designs and analytical tools used here. The information regarding the statistical tools and their limitations in different fields the research is given in this section. This section explains why to use trend analysis and what are the situations in which correlation can be used. what is problem statement.9-Financial Management by Vikas Publishing House the concept of mutual funds & various schemes have been studied from this book.P. and what does correlation means.3”. Magazines etc. It guided me to know about the growth of the various schemes of Mutual Fund over the last few years. what are the sources of data collection and what are the methods of data collection is given in this section  Pandey I.

December 15. 2010: In the information about the risk and return was given.  .  Facts for you14-jan. . 2009: In the Asset Management of the different mutual fund houses was given. – Introduction of mutual funds. 2009: different Mutual fund houses was given.  The Management Accountant15 . 2010: In this the various schemes offered by the mutual fund houses were given.  SEBI Bulletin 17 comparison to the fixed deposits in he In this the portfolio of the – July.2009: In this the performance of the mutual fund was given. Feb 2009: In this information about the Entry and Exit load was given. Srivastva10: Management of Indian Financial Institutions-Himalaya Publishing House 6th edition. disadvantages and various types have been taken from it. 2009: In this the fund size of the different Mutual fund was given.Southern Economist16 . their advantages.  Journal of finance13-feb.April 2010: In this article related to the benefit related to the mutual fund as Banks was given. 2010: In this information about the various Analytical tools was given  Journal of finance19-dec.  ICFAI reader20-july2008. 2010: In this article they shows the growth of the mutual fund in India is given  Southern Economist12 Sep.  Indian journal of commerce11-jun.  Charter financial analysis18-jan.

asp#Type10c – Data regarding NAVs on different dates has been taken from this site.comd.com/navcorner/index.jsp-This site provided This site provided This site provided information regarding Tata mutual fund such as history of Tata mutual fund.hdfcfund.mutualfundsindia/navreports.jspe– This site provided information regarding managing of funds by the investors and investment criteria in different funds  http://www.  www.valuereserachonline.bslmutualfund.financeindiamart.asp?page=aboutusa-This site explained the information regarding various mutual funds and its growth in past years.axismutualfund.Different expert comments have been extracted & the mechanism of mutual funds has been taken from this site  . This site provided past year of return nifty.com/aboutus/index.com/history/ index. portfolio. board of information regarding nifty index.amfiindia.  www.jspg-director etc…  http://www.com/aboutus/index.com/navtypereport.jspb – It provided me the data regarding various parties involved in mutual funds and investment pattern of public and private sector mutual funds  http://www. .Websites visited:  http://www.com/showhtml.http://www.amfiindia. information regarding UTI Mutual fund such as history.jspf--portfolio etc…  http://www.

Chapter-5 RESEARCH METHODOLOGY .

Research design is the conceptual structure within which research is conducted. formulating hypothesis or suggested solutions. It is a strategy specifying which approach will be used for gathering . 4. Research is thus. Research Methodology is a way to systematically study & solve the research problems. Research design operational implication to the final analysis of data. Research is an academic activity and this term should be used in a technical sense. Research is an art of scientific investigation. A research design is a framework for the study and is used as a guide in collecting and analyzing the data. needs to be elaborated upon. an original contribution to the existing stock of knowledge making for its advancement. It is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. which we used at the time of conducting the research. 3. he must clearly state the methodology adopted in conducting the research so that it may be judged by the reader whether the methodology of work done is sound or not. Meaning of research Research problem Research design Sampling design Data collection method Analysis and interpretation of Data  Meaning of Research Research is defined as “a scientific & systematic search for pertinent information on a specific topic. It is due to this reason that research methodology. The search for knowledge through objective and systematic method of finding solution to a problem is research. The Research Methodology here includes:1. 6. 5. reliability and adequacy of results obtained. If a researcher wants to claim his study as a good study. Research is a systematized effort to gain new knowledge. Research com prices defining and redefining problems.  Research Design A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. 2.RESEARCH METHODOLOGY The procedure adopted for conducting the research requires a lot of attention as it has direct bearing on accuracy. It constitutes the blueprint for the collection measurement and analysis of data. making deductions and reaching conclusions to determine whether they fit the formulating hypo thesis.

. as it seeks to describe ideas and insight and to bring out new relationships. In this type of research the researcher has no control over the variables. Research design can be categorized as: Research Design Exploratory Research Descriptive Research Diagnostic Research Experimental Research The present study is descriptive in nature.  OBJECTIVE OF STUDY:  Main Objective: The main objective of this project is to make the Comparative Analysis of the Axis MF with HDFC and BSL mutual funds and getting the opinion of people regarding Axis Mutual Fund. In this study I will apply Descriptive Research Design. As Descriptive Research Design is the description of state of affairs. To study the Mutual fund industry in detail. It helps in bringing into focus some inherent weakness in enterprise regarding which in depth study can be conducted by management. as it exists at present.and analyzing the data. he can only report what has happened or what is happening. I have tried to explore the general opinion about mutual funds. To study in brief various Mutual funds promoted by different AMC.  Sub Objectives:     To study the Investment procedure in Mutual funds. Research design is flexible enough to provide opportunity for considering different aspects of problems under study. It also includes the time and cost budget since most studies are done under these two constraints.

.  LIMITATIONS OF THE STUDY:  Availability of data was a constraint due to only those mutual funds data is considered. It provides the AMC a feedback from customers regarding their problems and perception about investing in mutual funds so that they can improve their services. Research has been done only at Kaithal. In this case period of analysis is only 4 years. The study throws some light on t performing schemes of Axis Mutual Fund.      Time Limitation. It is restricted to kaithal.  Functional Scope: This study can be used to understand the behavioural aspect of people who invest. which is available.  Though every . what is their investment potential and how much risk can they take. MANAGERIAL USEFULNESS OF STUDY: This study will also give information about prospective investors both individual as well as institutional clients in areas of surrey where they can get lead."precaution has taken due to large data and complex calculations there may be chances of error. Some of the persons were not so responsive. The research was carried on in the Northern Region of India. I have visited people randomly nearby my locality. Possibility of error in analysis of data due to small sample size.  Generally longer period gives us more accurate estimates of beta. Possibility of error in data collection.  SCOPE OF THE STUDY:  Geographical Scope: The geographical scope of the study is not limited. and also there are some MFs whose data was not available so their duration was shortened.

Out of which only 70 people attempted all 15 questions. irrespective of them being investor or not or availing the services or not.In dealing with real life problem it is often found that data at hand are inadequate.  Primary Data Collection: Primary Data is the first hand information collected directly from the respondents . SAMPLING:  SAMPLING METHOD ADOPTED: The sampling method chosen is Area Sampling. The geographical area chosen for individual customers was at the Axis Bank Ltd.  SOURCES OF DATA COLLECTION: For the completion of this project both Primary and Secondary data are required. So. they attempted only 5 questions. There are several ways of collecting the appropriate data which differ considerably in context of money costs. Primary data can be collected either through experiment or through survey. Other 30 people not investing in Axis Mutual Fund. the study has been narrowed down to a representative sample to make the study more manageable. Therefore. Kaithal Branch at Ambala Road. The data collection for this study was done in the following manner: . time and other resources at the disposal of the researcher. As the primary sampling unit represents a cluster of units based on geographic area. It was collected through mails and personal visits to the known persons. by formal and informal talks and through filling up the questionnaire prepared. it becomes necessary to collect data that is appropriate. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. The sample is selected in a random way. it becomes impossible to contact each and every individual of the universe due to the time and money constraints. The corporate sea being very fast.  Sample size: The sample size of my project is limited to 100 only. and hence.  Sample Design: A „sample design‟ is a definite plan for obtaining a sample from a given population.

 Through questionnaire: I had prepared a questionnaire for collecting information about second part of the project. journals. and axis mutual fund navigators. Through personal interviews: A rigid procedure was followed and we were seeking answers to many pre-conceived questions through personal interviews.  At the last I will draw all conclusion regarding customer‟s preferences and satisfaction about mutual funds.  Secondary Data Collection: Secondary data is the second handed data.  The analysis of the data generated during the study with the help of various statistical tools like bar charts & pie charts.  I will screen all the questionnaires in order to gain a first overview over the data gathered. books. Information to find out the investment potential and goal was found out through Questionnaires. . Secondary Data is collected through internet.  DATA ANALYSIS PROCEDURE: The major focus is on the results of the questionnaire survey.

COMPARATIVE ANALYSIS

AXIS MUTUAL FUND

Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank today is capitalized to the extent of Rs. 405.17 crores with the public holding (other than promoters and GDRs) at 53.09%. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a very wide network of more than 1000 branches and Extension Counters (as on 31st March 2010). The Bank has a network of over 4055 ATMs (as on 31st March 2010) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.

Corporate Social Responsibility
Axis Bank takes its corporate social responsibility seriously. It set up the Axis Bank Foundation (registered as a public trust) in 2006 to support its philanthropy. Each year, the Bank transfers 1% of its net profits of the previous year to the Foundation. The Foundation focuses on education for underprivileged children. Axis Bank shares the belief that micro-credit and microfinance services are major enablers of financial inclusion to the under privileged sections of society. The Bank has 86 microfinance relationships in 18 states of which 4 are in the North East with a corresponding client outreach of around 18.50 lakh. Most of the beneficiaries are poor women engaged in small and marginal enterprises. The Bank looks at agri-business as an inclusive and profitable business proposition. The retail agriculture organisational model consists of 46 strategically placed agriculture clusters. The Bank offers its retail agri products to farmers through 249 of its branches.

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. As Axis Bank Financial Advisory team, we adopt a strong research driven recommendation model to help you choose the best funds based on qualitative and quantitative parameters. Apart from this, a dedicated Relationship Manager can also be assigned to you to ensure that your investment requirements are taken care of, smoothly and efficiently. Our advisors understand your profile and lead you through a structured financial planning process to devise financial solutions best suited to you. The advisors will also help you choose the right investment products in line with your investment goals.

 Board of Directors:

Shikha Sharma, Chairperson, Associate Director  MD & CEO of Axis Bank  Over two decades of experience across the spectrum of financial services  Instrumental in setting up various market leading businesses for the ICICI Group T S Narayanasami, Independent Director  Has been the Chairman & Managing Director of Bank of India, Indian Overseas Bank and Andhra Bank  Has held various important positions within the banking industry Pranesh Misra, Independent Director  Founder of Brandscapes Consultancy Private Limited  Over 26 years experience in communication, marketing, marketing research, brand planning and international client management across varied industries U R Bhat, Independent Director  Managing Director of Dalton Capital Advisors (India)  Fellow of the Chartered Institute of Bankers, London

These are: Outside-in View  Investor at the heart of every single decision. MD & CEO of Axis AMC. Associate Director  A Chartered Accountant with over 19 years experience in capital markets  Led an award winning investment management team at IDFC (erstwhile Standard Chartered) AMC  Awarded Business Standard‟s Debt Fund Manager of the year in 2004  Worked in the Treasuries of HSBC and Standard Chartered Bank  Business Philosophy: Our business will be built on three pillars. Enduring Wealth Creation  Play a serious and credible role in investor's money basket. Previously the Head of Country Operations of Jardine Fleming Asset Management Company (AMC) in India for 7 years advising the India dedicated funds of the Flemings Group.  Encourage investors to build a long-term perspective of the mutual fund category. Financial Services & Third Party Products . Associate Director  President – Retail Banking Retail Liability at Axis Bank  Heads the Wealth Management Division which includes the Financial Advisory Services for the Retail Investors and Wealth Management for the HNIs  In previous role with ING Vysya Bank has handled several assignments in the areas of Private Banking. Sonu Bhasin. . not in ours. Long-term Relationships  Leverage the equity of the 'Axis' brand  Aim at building relationships rather than being transactional.  Communicate in his language. Rajiv Anand. Ms.

31(08/04/2009) Hybrid: Equity Oriented Fund Type Open-Ended Launch Date March 1995 Risk Grade Average Return Grade Average Net Assets (Cr) 1957.Week High 52.36 2.79 01.68 (07/04/2010) 75.01 Table7: Returns of Axis Equity Growth Fund Sector Allocation Top 5 Sectors % Net Asset As on 28/02/2010 Energy 13. Chandresh Nigam” Fund Profile Latest NAV 52.90 Financial 7.54 Table 8: Sector allocation of Axis Equity Growth Fund Asset Allocation As on 28/02/2010 % Net Asset Equity Debt Others 73.97 Table 9: Asset allocation of Axis Equity Growth Fund .62 Technology 6.68 (07/04/2010) 47.AXIS EQUITY-GROWTH FUND Fund objective: An open-ended balanced fund investing between 40% to 75% in equity related securities and the balanced in debt (fixed income securities) with a view of generate regular income together with capital appreciation.03 Diversified 5.33 16.Week Low Fund Category 75.24 24.17 61.81 13.70 Engineering 7.19 (31/03/2010) Table 6: Fund profile of Axis Equity Growth Fund Period 1-Month 3-Month 1-year 3-year 5-year Returns Returns (%) 4. Fund Manager: “Mr.

S&P CNX Nifty 3. 1805.70 1295.74 47.40 ONGC Energy 16.06 SILMENS Telecom 22.17 TATA TEA FMCG 15.Portfolio Top Holdings Company Sector Mkt.47 5.28 SBI Banks 23.27 2.42 48.48 22.8 2108.98 2.02 32.Value*(Rs.22 22.Value* (Rs.70 1.00 Table 10: Portfolio Holdings Of Axis Equity Growth Fund % of Asset 3.54 TCS Technology 28.69 AXIS BANK Banks 23.90 1555. In Cores) EMAAR MGF LAND & PVT Realty 76.30 Table 11: History Of Axis Equity Growth Fund 2004 20.15 20.75 2.35 3.80 1508.56 26.46 GOI Sovereign 58.90 1.80 NAV -13.32 2.70 2.56 1.34 Total Return -8.25 2.98 GRASIM INDUSTRIES Diversified 16.78 40.72 +/.54 % of Asset 7.16 1443.73 Debt Holdings Company Instrument Mkt.11 100.92 ITC LTD FMCG 15.34 UCO BANK Finance 20. In Cores) Equity Shares RELIANCE Oil & Gas 34.24 1.66 NTPC Utilities 25.15 Net Assets Rs.47 2.20 .58 1.87 26.46 BHEL Engineering 30.92 BHARAT ELECTRONICS Engineering 18.13 LARSEN Engineering 27.95 History AXIS Equity-Growth Fund 2009 2008 2007 2006 2005 41.26 INFOSYS TECH Technology 33. Cr.26 HDFC BANK Banks 23.66 1.70 28.80 1.27 2.45 9.

HDFC Asset Management Company was incorporated under the Companies Act. to identify new growth sectors and share this knowledge with our investors in the form of product offerings. 1956. 2000. HDFC Mutual Funds are handled by HDFC Asset Management Company Limited. We have come up with various products across asset and risk categories to enable investors to invest in line with their investment objectives and risk taking capacity. we have won a number of awards and accolades for HDFC performance.  Vision: “To be a dominant player in the Indian mutual fund space. recognized for its high levels of ethical and professional conduct and a commitment towards enhancing investor interests. HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act. Besides.  HDFC Asset Management Company Limited (AMC): HDFC Asset Management Company (AMC) is the first AMC in India to have been assigned the „CRISIL Fund House Level – 1‟ rating. 1956. by giving the investor long-term benefits. that. on December 10. HDFC was incorporated in 1977 as the first specialised Mortgage Company in India. 1999. The company also provides portfolio management / advisory services. on December 10.” . 1999. We believe.HDFC MUTUAL FUND HDFC (Housing Development Finance Corporation Limited) is one of the dominant players in the Indian mutual fund space. and was approved to act as an Asset Management Company for the Mutual Fund by SEBI on July 3. This is its highest Fund Governance and Process Quality Rating which reflects the highest governance levels and fund management practices at HDFC AMC It is the only fund house to have been assigned this rating for two years in succession. we also offer Portfolio Management Service. we have to constantly review the markets for new trends. and was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter dated June 30. 2000. Over the past.

63 (28/02/2010) Table 12: Fund profile of HDFC Equity Growth Fund Sector Allocation Top 5 Sectors As on 28/02/2010 Banking/Finance Oil & Gas Pharmaceuticals Technology Engineering % Net Asset 22.09(31/03/2010) 277.5 9. 30% debt and money market securities.2 81.05 Table 13: Returns of HDFC Equity Growth Fund Asset Allocation As on 28/02/2010 Equity Debt Others % Net Asset 65.92 07. Fund Manager: “Mr.9 7.34 07.15 15.Week High 52.5 50.HDFC EQUITY-GROWTH FUND Fund objective: An open-ended balanced scheme with the objective of long term growth of capital and current income.81 24.10(29/03/2010) 152.term capital appreciation and current income from a balanced portfolio with a target allocation of 70% equity.67(01/04/2009) Hybrid: Equity Oriented Fund Type Open-Ended Launch Date December 1994 Risk Grade Average Return Grade Above Average Net Assets (Cr) 6734.32 09.71 Table 14: Sector Allocation Of HDFC Equity Growth Fund Table 15: Asset Allocation Of HDFC Equity Growth Fund .7 244.2 Fund Profile Latest NAV 52. Prashant Jain” Returns Period 1-Month 3-Month 6-Month 1-year 2-year 3-year 5-year Returns (%) 4. The HDFC Equity-Growth fund seeks to achieve long. through a portfolio of equity and fixed income securities.Week Low Fund Category 277.48 9.4 54.

In Cores) % of Asset Equity Shares SBI Banks 506.28 3. 4716. Cr.87 3937.53 9.88 GAIL Oil & Gas 188.42 NAV -15.2 2005 65.70 26.6 2004 51.76 Table 16: Portfolio Holdings Of HDFC Equity Growth Fund History HDFC Equity.90 NTPC Utilities 194.86 1.63 Total Return +/.Portfolio Top Holdings Company Sector Mkt.90 5491.52 ONGC Oil & Gas 449.0 Table 17: History Of HDFC Equity Growth Fund .45 3.44 7.30 28.72 1148.36 2.32 53.21 INFOSYS Technology 195.37 2.79 ZEE ENTERTAIN Media 186.4 2007 145.16 978.61 -8.39 35.89 LARSEN Engineering 194.Growth Fund 2009 188.12 2.6 2008 223.01 2.S&P CNX Nifty 3.57 126.01 62.79 BANK OF BARODA Banks 252.77 27.07 6.75 ICICI BANK Banks 216.Value*(Rs.45 2185.20 2.15 Net Assets Rs.49 3.7 2006 107.67 TITAN INDUSTRY Miscellaneous 255.

”  Mission: To consistently pursue investor's wealth optimization by:  Achieving superior and consistent investment results. of Canada. The joint venture brings together the Aditya Birla Group's experience in the Indian market and Sun Life's global experience. Our solutions offer a range of investment options. is a joint venture between the Aditya Birla Group and the Sun Life Financial Services Inc. fund of fund schemes. Established in 1994. (BSLAMC). including diversified and sector specific equity schemes. a wide range of debt and treasury products and offshore funds.  Upholding highest standards of ethical values at all times. hybrid and monthly income funds. .  Institutionalizing system-approach in all aspects of functioning.  Creating a conducive environment to hone and retain talent.  Providing customer delight. the investment managers of Birla Sun Life Mutual Fund. Birla Sun Life Mutual fund has emerged as one of India's leading flagships of Mutual Funds business managing assets of a large investor base.BIRLA SUN LIFE MUTUAL FUND Birla Sun Life Asset Management Company Ltd.  Vision: “To be a leader and role model in a broad based and integrated financial services business.

which are excellent growth prospects and strong fundamental.17 Cr. The fund has more than 224 schemes with AUM of Rs. sustainability of its business model and its competitive position. ethical and research-based investments and wealth management services Birla Sun Life Asset Management Company follows a long-term. dedicated to tracking down the best companies to invest in. Values:     Integrity Commitment Passion Seamlessness Birla Sun Life Asset Management Company has one of the largest team of research analysts in the industry. BSLAMC strives to provide transparent. The approach is to identify companies. . amongst other factor. 49983. The fundamental include the quality of the company management. fundamental research based approach to investment.

7 7.Week Low Fund Category 47.Week High 52.03 Metals 5. Nishit Dholakia” Returns Period 1-Month 3-Month 6-Month 1-year 2-year 3-year 5-year Returns (%) 4.54 Table 20: Sector Allocation Of BSL 95-Growth Fund Table 19: Returns Of BSL 95Growth Fund Asset Allocation As on 28/02/2010 % Net Asset Equity Debt Others 66. Fund Manager: “Mr.09(01/04/2009) Hybrid: Equity Oriented Fund Type Open-Ended Launch Date February 1995 Risk Grade Average Return Grade Above Average Net Assets (Cr) 253.16 Table 21: Asset Allocation Of BSL 95.5 12.63(29/03/2010) 38. The Birla Sun Life 95.5 4. 40% debt and money market securities.56(31/03/2010) 49.62 FMCG 6.85 (28/02/2010) Table 18: Fund Profile Of BSL 95Growth Fund Sector Allocation Top 5 Sectors % Net Asset As on 28/02/2010 Financial 13.90 Diversified 7.term capital appreciation and current income from a balanced portfolio with a target allocation of 60% equity.Growth seeks to achieve long.8 21. through a portfolio of equity and fixed income securities.6 36.09 4.70 Services 7.Growth Fund .BIRLA SUN LIFE 95-GROWTH FUND Fund objective: An open-ended balanced scheme with the objective of long term growth of capital and current income.74 29.1 Fund Profile Latest NAV 52.6 28.

Value*(Rs.87 92.48 3.59 50.43 2.7 2008 46.60 -8.64 72.64 53.43 Mkt.44 1.04 48.03 1.52 1.8 NA NA NA 28.38 39.97 26. Cr.99 NA 9.64 35. ZINC CROMPTION GR.45 104.36 % of Asset 2.92 1.40 83.30 % of Asset 3.68 38. LUPIN LTD TO POWER AEC HCL TECH ITC LTD WIPRO LTD Debt Company Sector Mkt.51 2.23 3.41 36.52 63.9 2007 25.51 1.49 38.90 170.Software Instrument INDUSTRIAL DEVELOPMENT Bond BANK OF INDIA LTD 7.16 NA Table 23: History of BSL 95-Growth Fund .97 1. In Cores) 87.S&P CNX Nifty 3.Growth Fund 2009 38.Software Petroleum Products Banks Banks Banks Consumer Non Durables Non Ferrous Metals Industrial Capital Goods Pharmaceuticals Power IT.0 2006 19.09 NAV -17.10 2.39 1.46 78.Value* (Rs.64 61.Growth Fund History Birla Sun Life 95.72 115.42 1.96 35.40 37.20 34. 142.6 2005 13.92 35.90 Total Return +/.37 Table 22: Portfolio Holdings of BSL 95.27 29.47 1.Software Consumer Non Durables IT.86 2.88 1.87 Pesticide Retailing Banks IT.15 Net Assets Rs. In Cores) 7.Portfolio Top Holdings Company Equity Shares RALLI INDIA TRENT ICICI BANK INFOSYS TECH AXIS BANK RELIANCE HDFC BANK ALLHABAD BANK NESTLE LTD HIND.11 1.02 GOI Securities 4.

ANALYTICAL TOOLS:

Return alone should not be considered as the basis of measurement of the performance of a mutual fund scheme, it should also include the risk taken by the fund manager because different funds will have different levels of risk attached to them. Risk associated with a fund, in a general, can be defined as variability or fluctuations in the returns generated by it. The higher the fluctuations in the returns of a fund during a given period, higher will be the risk associated with it. These fluctuations in the returns generated by a fund are resultant of two guiding forces. First, general market fluctuations, which affect all the securities, present in the market, called market risk or systematic risk and second, fluctuations due to specific securities present in the portfolio of the fund, called unsystematic risk. The Total Risk of a given fund is sum of these two and is measured in terms of standard deviation of returns of the fund. In order to determine the risk-adjusted returns of investment portfolios, several eminent authors have worked since 1960s to develop composite performance indices to evaluate a portfolio by comparing alternative portfolios within a particular risk class. But before that we need to understand all the components that are used to explain the ratios like Beta, Alpha, Treynor, Sharpe, and Jensen etc. the components are as follows:

 Net Asset Value (NAV):
A mutual fund is a professionally-managed firm of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. In other words we can say that A Mutual Fund is a trust registered with the Securities and Exchange Board of India (SEBI), which pools up the money from individual / corporate investors and invests the same on behalf of the investors /unit holders, in equity shares, Government securities, Bonds, Call money markets etc., and distributes the profits. The value of each unit of the mutual fund, known as the net asset value (NAV), is mostly calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding. The value of all the securities in the portfolio in calculated daily. From this, all expenses are deducted and the resultant value divided by the number of units in the fund is the fund‟s NAV. Total value of the fund No. of shares currently issued and outstanding

NAV =

 Factors affecting NAV:

 Variation in investment portfolio:
Variation in the investment portfolio causes changes in the NAV of the fund, which in turn may affect the overall value of the fund. Since, same investment portfolios with different NAV gives same returns in percentage terms, therefore, the securities that we have in the portfolio play pivotal importance. Changing the portfolio or replacing any security with the existing security may change the overall NAV of the fund, which in turn may change the value of the entire fund.

 Sale and repurchase of units:
Sale and repurchase of any unit that we have in our portfolio changes the overall NAV of the fund. For example, we have a portfolio in which the security A is priced at Rs 100. We sell this security and after one week when the price of the security becomes Rs 80 we buy it, keeping all other investments intact, then the NAV of the portfolio will come down, which in turn will result in better valuation for the fund. Therefore, sale and repurchase also affects the NAV of the fund.

 Valuations of assets:
The value that the underlying asset has, whose portfolio the fund has managed or is managing, if the value of that asset changes, it can change the overall NAV of the fund.

 Cost associated with the Fund:
The cost associated with the fund also affects the NAV of the fund. All the charges accumulated during the selling of a security are known as Sales charges. Funds with low expense ratios are always preferred as they decrease the overall cost of the security.

 BETA :
It is a ratio that measures the market risk of securities or a fund. If the beta ratio exceeds one, the fund is more sensitive than funds in general to the fluctuations of the stock market. The beta may also be negative, which means that the value of the fund will, on average, move to the opposite direction than the general market development. Beta measures the sensitivity of rates of return on a fund to general market movements. It also measures the volatility of the fund, as compared to that of the overall market. The Market's beta is set at 1.00; a beta higher than 1.00 is considered to be more volatile than

the market, while a beta lower than 1.00 is considered to be less volatile. Beta measures the systematic risk and show how price of security respond to the market foresees. It is calculated by relating the return on security with return for market. β = n  XY – ( x  y) / n  x – (x)² Where, X =index return, Y = fund return

 Alpha:
It measures the stock unsystematic return and it is average return independent of market return. It is calculated by comparing the funds actual performance with the risk adjusted expected return. = Y-β*X Where, X =index return, Y = fund return

 Standard Deviation:
Standard deviation is a representation of the risk associated with a given security stocks, bonds, property, etc. or the risk of a portfolio of securities. Risk is an important factor in determining how to efficiently manage a portfolio of investments because it determines the variation in returns on the asset and/or portfolio and lives investors a mathematical basis for investment decisions. The overall concept of risk is that as it increases, the expected return on the asset will increase as a result of the risk premium earned higher return on an investment when said investment carries a higher level of risk. S.D is used to measure the variability of return i.e. the variation between the actual and expected return. σ= √ y²/n

It is used to measure the variation in the individual return from the average expected return over a certain period. Standard deviation is used in the concept of risk of a portfolio of investment. Higher the Standard Deviation means a greater fluctuation in expected return.

 SHARPE RATIO:
A Sharpe ratio developed by Nobel laureate William. F. Sharpe (1966) to measure risk adjusted performance. Sharpe‟s performance index gives a single value to be used for the performance ranking of various funds of portfolios. Sharpe‟s index measures the risk premium of the portfolio relative to the total amount of risk in the portfolio. This risk premium is the difference between the portfolio‟s average rate of return and the riskless

A scheme with high Treynor ratio such as Equity scheme will enjoy a premium when the markets are bullish and will be affected negatively when the markets are bearish. and if the figure is negative. p = beta coefficient of portfolio.) While a high and positive Sharpe Ratio shows a superior risk-adjusted performance of a fund. The index assigns the highest values to assets that have risk-adjusted average rate of return.73% p. . scheme with low Treynor ratio such as Debt Fund will not be affected greatly. R f = Risk free rate of return. S = rP – rf /p Where. a low and negative Sharpe Ratio is an indication of un-favourable performance. This ratio rewards volatility because it shows risk adjusted returns per unit of market risk for that particular scheme. It measures portfolio risk with beta. On the other hand. Tn =rP – rf /p Where Tn = Treynor's index RP = Return of the portfolio. (*Risk free rate of return is taken as 7. If the Sharpe figure is positive. The standard deviation of the portfolio indicates the risk. R f = Risk free rate of return. the risk taken has paid off.  TREYNOR RATIO: “Jack Treynor” (1965) was the first researcher developing a composite measure of portfolio performance. S = Sharpe's Index p = The standard deviation of the portfolio. schemes with high Treynor ratio are highly affected and vice versa. When the markets are more volatile. RP = Return of the portfolio. the returns are lower than the risk-free rate. in the decline.a. The ideal fund‟s return rises at a faster rate than the general market performance when the market is moving upwards and its rate of return declines slowly than the market return. irrespective of the bullish or bearish run in the markets. The fund‟s performance is measured in relation to the market performance. To understand the Treynor index. and calculates portfolio‟s market risk premium relative to its beta.rate of return. an investor should know the concept of characteristic line.

the market Index. Rp= average return of the portfolio. Equilibrium average return of the portfolio by the market with respect to systematic risk to portfolio should earn with the systematic return. The standard is based on the manager‟s predictive ability. .  JENSEN MEASURE: The absolute risk adjusted return measure was developed by “Michael Jensen” and commonly known as Jensen‟s measure. It is mentioned as a measure of absolute performance because a definite standard is set and against that the performance is measured. While a high and positive Treynor Index shows a superior risk-adjusted performance of a fund. Successfully prediction of security price would enable the manager to earn higher returns than the ordinary investor expects to earn in a given level of risk.rf ) p Where. The trouble with both Sharpe and Treynor ratios for evaluating "risk-adjusted" returns is that they equate risk with short-term volatility. rf = risk free return rm= average market return β= A measure of systematic = Y-βX If the alpha is positive. the portfolio has performed better and if alpha is negative it has not shown performance up to the benchmark. Rp =α + (rm .All risk-averse investors would like to maximize this value. i. a low and negative Treynor Index is an indication of unfavorable performance.e. Sharpe and Treynor index models provide measures for ranking the relative performance of various portfolios on a risk-adjusted basis according to Jensen equilibrium average return on a portfolio would be a benchmark. Therefore these measures may not be applicable in evaluating the relative merits of long-term investments.

87 26.31/5= >6.41 -1.26 1.Growth Fund X(nifty) 3.69 y -37.47 0 y² 1410 560.78 2254.28 -372.81 y=Y-Y X = Index return Y = Fund return N= No.48 22.46 Y= Y / N=>119.46 =21.03 16.15 -8.55 23.21 3.45 9. of years 1.92 1617. BETA : β = n  XY – ( x  y) / n  x – (x)² β = 1190.81 217.74 47.60 94.78 40.7 6 Table 24: Performance Evaluation Of Axis Equity Growth Fund X =X / N=>32.98/3389.34 Y =119.90 1.81.07 (Y) ²=5078.0. Alpha: = Y-βX = 23.55 β = 0.08 (Y) ² 188.47 (X) ²=886.35 2.59 1163.72 X=32.49 699.16  y²=2242.06 269.64 499.Performance Evaluation AXIS Equity.76 XY -43.35 518.69 Y(return) -13.55 .67 -1.92 79.57 42.3 1 (X) ² 9.22 22.08/5=>23.14  XY =1007.35*6.28 2.

RP= 23.73.  = 21.17.35 Tn = 45.81-7. rf= 7.81-7. Sharpe's index: Sp = RP – Rf /p rf = 7.75 5. Standard Deviation: σ= √ y²/n σ = √ 2242.46 Rp= 21. rP = 23. p = 21.55 .10 .17 Sp =0.73.81 Tn= 23.73/21.rf ) β = 0.73/0. TREYNOR: Tn = rP – rf /p β = 0. rm = 6.0. rf= 7.81 Sp= 23.3.17 4.94 6.55.35. JENSEN: Rp =α + (rm .44 Rp = 21.35.76/5 σ = 21.73%.

49 699.21 3.69 Y(return) -15.59 2.3 1 (X) ² 9.87  y²=3709.15 -8.59*6.63 53.92 79.12 67. BETA : β = n  XY – ( x  y) / n  x – (x)² β = 2032.4/3389.43 432.41 27.29 2874.0. Alpha: = Y-βX = 32.47 (X) ²=886.44 XY -49.31/5= >6.70 27.30 893.70 y -48.46=>29 .28 0 y² 2346.23 -477.93 3931.90 (Y) ²=9093.Performance Evaluation OF HDFC Equity Growth Fund X(nifty) 3.61 35.29 757.6 5 Table 25: Performance Evaluation Of HDFC Equity Growth Fund X =X / N=>32.45 9.90 1.59  XY =1466.8 3.41 267.86 62.89 -5. of years 1.07 (Y) ² 244.05 1658.05 29.55=> 0.46 Y= Y / N=>164.07/5=>32.87 26.44 20.03 1285.53 Y =164.81 y=Y-Y X = Index return Y = Fund return N= No.64 9.60 94.72 X=32.81.

73.74 Rp = 28.81-7. rf= 7.46 Rp= 29 .23 Sp =0. RP= 32.73/0.59 Tn = 42.81-7.65/5 σ = 27.  = 29. TREYNOR: Tn = rP – rf /p β = 0.23. Sharpe's index: Sp = RP – Rf /p rf = 7.73.50 6.81 Sp= 32.92 5.81 Tn= 32.3.0.59.59.26 .73/27. Standard Deviation: σ= √ y²/n σ = √ 3709. p = 27. JENSEN: Rp =α + (rm . rf= 7.73.rf )  β = 0. rP = 32. rm = 6.23 4.

Performance Evaluation Of Birla Sun Life 95.98 y -51.04 54.74 1597.28 1057.67 2.57 49.87 26.3 0 y² 2659.20  XY =310.0.60 (X) ²=792.90 83.60 (Y) ²=9749. BETA : β = n  XY – ( x  y) / n  x – (x)² β = -1796.97  Y =134.71 XY -56.77=>37.38 -744.49 699.6 7 Table 26: Performance Evaluation Of BSL 95-Growth Fund X =X / N=>22.03 39. Alpha: = Y-βX = 33.45 X=22.5 7 (X) ² 9.7/4=>33.64 Y= Y / N=>134.46 2493 21.60 29.67+3.25/2659.15 -8.44 .93 -4.67 y=Y-Y X = Index return Y = Fund return N= No.22 Y(return) -17.92 79. of years 1.52 39.96 842.21 3.Growth Fund X(nifty) 3.64)=>33.41 6988.67-(-0.69  y²=5213..64 6.90 1.7 (Y) ² 320.67*5.48 β = .57/4= >5.

67 Tn= 33.73/-0.71 5.73.73. rP = 33.71 6.64 Rp = 37.10 4. p = 36. JENSEN: Rp = α + (rm .67-7. Sharpe's index: Sp = RP – Rf /p rf = 7.  =37. rm = 5. RP= 33.67.67-7.10.73/36.67 Sp = 33. TREYNOR: Tn = rP – rf /p β = -0. rf= 7.3. rf= 7.67/4 σ = 36.rf )  β = -0.40 Rp = 38.44.84 .67 Tn = -38. Standard Deviation: σ = √ y²/n σ = √ 5213.44+1.67.73.10 Sp = 0.

In this case Axis Equity Growth Fund have the maximum i.s Index 60 40 20 0 -20 -40 -60 Axis Equity Growth Fund HDFC Equity Growth Fund Birla Sun Life 95.94 42. 45.e. . Birla Sun Life Equity Growth Mutual Funds Analysis Of Mutual Fund On The Bases Of Treynor's Index: MUTUAL FUND Axis Equity Growth Fund HDFC Equity Growth Fund Birla Sun Life 95.Growth fund.5 Chart 1: Treynor's Index Analysis INTERPRETATION: This shows the risk adjusted return.94 42.94 index value in comparison to the other two i. BSL Mutual Funds Treynor.Growth Fund TREYNOR'S INDEX 45.50 -38.71 Table 27: Treynor‟s index of Axis.e.Growth Fund -38.s Index 45. So we can say that the Axis Equity Growth fund is the best fund as it provides the maximum risk premium in comparison to the other two funds.Comparison Of AXIS. HDFC. HDFC Equity Growth Fund and Birla Sun Life 95. HDFC.71 Treynor.

92 0. In this case HDFC Equity Growth Fund has the maximum value i. BSL Mutual Funds 1 0.75 0.71 Table 28: Sharpe‟s index of Axis.0.75 0.2 0.Growth Fund Chart 2: Sharpe's Index Analysis INTERPRETATION: Sharpe shows the risk adjusted return.71 Sharpe. HDFC.9 0.3 0.s Index Axis Equity Growth Fund HDFC Equity Growth Fund Birla Sun Life 95.1 0 Sharpe's Index 0.5 0.e.7 0.Analysis of Fund On The Bases Of Sharpe's Index: MUTUAL FUND Axis Equity Growth Fund HDFC Equity Growth Fund Birla Sun Life 95.e.8 0. .4 0.Growth Fund.92 in comparison to other fund i.Growth Fund SHARPE'S INDEX 0.6 0. So we can say that the HDFC Equity Growth Fund is the best fund amongst the three funds.92 0. Axis Equity Growth Fund and Birla Sun Life 95. Higher the Sharpe Index better the fund.

s Index Axis Equity Growth Fund HDFC Equity Growth Fund Birla Sun Life 95.84 index value in comparison to the other two i.1 28.1 Jensen.Analysis Of Fund On The Bases Of Jensen's Index: MUTUAL FUND Axis Equity Growth Fund HDFC Equity Growth Fund Birla Sun Life 95. HDFC Equity Growth Fund and Axis Equity Growth Fund. we can say that the Birla Sun Life 95.Growth Fund JENSEN'S INDEX 21.26 21. .Growth Fund have the maximum i.e. HDFC. BSL Mutual Funds Jensen's Index 45 40 35 30 25 20 15 10 5 0 38.Growth Fund is the best fund as it provides the maximum risk premium in comparison to the other two funds.84 28.84 Table 29: Jensen‟s Index Of Axis. 38.26 38.e. In this case Birla Sun Life 95. So.Growth Fund Chart 3: Jensen's Index Analysis INTERPRETATION: This shows the risk adjusted return.

Linear trend: y = a + bx 2. Forecasting is concerned with mainly two tasks: 1. the process is referred as “forecasting” and the figure or statement obtained is known as “forecast”. In this world of uncertainness. Parabolic trend: y= a + bx + cx . economic decision rest upon a forecast of future condition. To determination of best basis available for formation of intelligent managerial expectations. Handling of uncertainty about future. UTILITY OF TREND ANALYSIS:      To study the past behaviour of data To forecast the future behaviour Estimation of Trade Cycles Comparison with other Time Series Study of present variations Trend is usually of two types: 1. 2.TREND ANALYSIS: To apply the statistical tool in this project TREND ANALYSIS is the most effective tool which is applied here when estimates of future conditions are made on a systematic basis.

95/5 = 33.42 Y= 168. X unit = 1 Year .79. a = Y/ N.56 48.31(X).15 32.95 -41. we get a = 168.80 26.11 4 1 0 1 4  x2 =10 Table 30: Trend Analysis Of Axis Mutual Fund NAV The equation of the straight line trend is Y= a + bx Since X=0.31 Thus the straight line trend is Y= 33.02 41. b = 63.6 -26.11/10 = 6.TREND ANALYSIS OF AXIS MUTUAL FUND NAV: YEAR NAV (Y) Deviations from (07) (X) -2 -1 0 1 2 X=0 XY x2 2005 2006 2007 2008 2009 N=5 20.84 XY=63.15 0 48. b = XY/  x2 Substituting values.02 82.79 + 6.

79 40.56 48.15 32.02 41. So.41 52.03 ACTUAL 20. There are minor differences in between these values.17and actual value was 20. we can say that Axis Mutual Fund NAV trends according to their standards. in 2009 the expected value was 46.72 59.48 33.80 26. .17 27.42.80.YEAR 2005 2006 2007 2008 2009 2010 2011 EXPECTED 21.10 46.41 and actual value was 41.42 Table 31: Expected and Actual NAV Of Axis Mutual Fund 70 60 50 40 Expected 30 20 10 0 2005 2006 2007 2008 2009 2010 2011 Actual Chart 4: Trend of AXIS Mutual Fund NAV INTERPRETATION: This chart shows that actual values are according to the expected values. In 2005 the expected value was 21.

01 0 223.77 107. a = Y/ N.91/5 = 145.98.91 -131.16(X).39 223.16 Thus the straight line trend is Y= 145. b = 361.TREND ANALYSIS OF HDFC MUTUAL FUND NAV: YEAR NAV(Y) Deviations from (07) (X) -2 -1 0 1 2 X=0 XY x2 2005 2006 2007 2008 2009 N=5 65. X unit = 1 Year .61 4 1 0 1 4  x2 =10 Table 32: Trend analysis of HDFC Mutual Fund NAV The equation of the straight line trend is Y= a + bx Since X=0.54 -107. b = XY/  x2 Substituting values.32 188.98 + 36.01 145.84 XY=361.42 Y= 729. we get a = 729.32 376.61/10 = 36.

YEAR 2005 2006 2007 2008 2009 2010 2011 EXPECTED 73.30 and actual value was 188.82 145.39 223. There are minor differences in between these values. So.30 254.98 182. we can say that HDFC Mutual Fund NAV trends according to their standards. in 2009 the expected value was 218.46 290.42 Table 33: Expected and Actual NAV of HDFC Mutual Fund 350 300 250 200 150 100 50 0 2005 2006 2007 2008 2009 2010 2011 Expected Actual Chart 5: Trend of HDFC Mutual Fund NAV INTERPRETATION: This chart shows that actual values are according to the expected values.62 ACTUAL 65.32 188.14 218.77 107. In 2005 the expected value was 73.66 and actual value was 65. .42.77.66 109.01 145.

b = XY/  x2 Substituting values.13/5 = 28.62 + 7.40 38.62.09 Y= 143. b = 75. we get a = 143.52(X).TREND ANALYSIS OF BSL MUTUAL FUND NAV: YEAR NAV (Y) Deviations from (07) (X) -2 -1 0 1 2 X=0 XY x2 2005 2006 2007 2008 2009 N=5 13.27 46. X unit = 1 Year . a = Y/ N.99 19.22/10 = 7.38 25.98 -19.38 0 46.18 XY=75.52 Thus the straight line trend is Y= 28.13 -27.22 4 1 0 1 4  x2 =10 Table 34: Trend Analysis Of BSL Mutual Fund NAV The equation of the straight line trend is Y= a + bx Since X=0.40 76.

In 2005 the expected value was 13.YEAR 2005 2006 2007 2008 2009 2010 2011 EXPECTED 13.09.40 38.99 19.66 and actual value was 38.27 46.14 43.58 21.70 ACTUAL 13. So.62 36. in 2009 the expected value was 43.99.58 and actual value was 13.10 28. we can say that Birla Sun Life Mutual Fund NAV trends according to their standards. .38 25.09 Table 35: Expected and Actual NAV of BSL Mutual Fund 70 60 50 40 30 20 10 0 2005 2006 2007 2008 2009 2010 2011 Expected Actual Chart 6: Trend of BSL Mutual Fund NAV INTERPRETATION: This chart shows that actual values are according to the expected values. There are minor differences in between these values.66 51.18 58.

. The persons having the age equal to or above 50 years.What is your Age? Age Group (in years) 20-30 30-40 40-50 Above 50 No. if investor‟s at different Age Group Age 20-30 10% 30-40 5% 40-50 Above 50 23% 62% Chart 7: Analysis according to Age Interpretation: As per the above pie chart the 62% of respondents who are below 30 years. only 05% of respondents. Of Respondents 62 23 10 05 Table 36: No.“ANALYSIS OF INVESTORS PERCEPTION TOWARDS INVESTMENT IN AXIS MUTUAL FUND” (1). the persons within the age group of 30-40 years only 23% and the persons between the age group 40-50 are 10% of respondents.

03% are Retired person and 11% are in other. 30% are Employees or Salaried-Man. Of Respondents 08 30 48 03 11 Table 37: No.What is your Occupation? Occupation Professional Salaried Business Retired Others No.(2). 08% are Professional. the 48% of respondents are Business-Man. of investor‟s having different Occupation 60 50 40 30 20 10 0 8 3 11 30 48 OCCUPATION Chart 8: Analysis according to Occupation Interpretation: As per the above Bar chart from Occupation group out of 100 investors. .

001 and above Chart 9: Analysis according to Income Interpretation: It is clear from the above pie chart that Income Group of the investors of kaithal.e.000 15% 10% 5% 28% Rs. 20.001 and above No.10.e.000. 42% investors that is the maximum investors are in the monthly income group Rs.000 42% Rs. Second one i. 30.001 to Rs. . 20.10.30.15.10.What is your monthly family income approximately? Income (in Rs.001 to 15000 Rs.10.000 and the minimum investors i.001 to 20.10. Of Respondents 05 28 42 15 10 Table 38: No.001 to 15000 Rs. 15.001 to Rs.000 Rs.000 Rs.(3).15. 10.) Up to Rs.000 Rs.20. 05% are in the monthly income group of below Rs.000. 28% investors are in the monthly income group of Rs. 15.000 Rs.001 to 20. of investor‟s at different Income Level Income Up to Rs.001 to 30. out of 100 investors.001 to 30.

06% and 01% from internet and other sources. of investor‟s from where they know about Axis MF Chart 11: Analysis source of awareness Interpretation: From the above chart it can be inferred that the Financial Advisor is the most important source of information about Axis Mutual Fund. Out of 100 Respondents.(4). Of Respondents 09 05 25 38 01 Source Of Awareness 1% 12% 6% Advertisement Internet Banks Financial Advisors Other 49% 32% Table 40: No. 49% know about Mutual fund Through Financial Advisor. . Of Respondents Yes No 78 22 Awareness Of Axis Mutual Fund NO 22% YES 78% YES NO Table 39: Investor‟s awareness towards Axis MF Chart 10: Analysis awareness of Axis MF If yes. 12% through Advertisement. how did you know about Axis Mutual Fund? Source Advertisement Internet Banks Financial Advisors Other No.Are you aware about AXIS MUTUAL FUND and their operations? Yes No No. 32% through Bank.

(5). Have you invested in AXIS MUTUAL FUND? Yes No

No. Of Respondents
Yes No 70 30

Invested In Axis Mutual Fund NO
30% YES 70% YES NO

Table 41: Investment decision of investor‟s .

Chart 12: Analysis Investment Decision Of Investor‟s

If NOT invested in Axis Mutual Fund, you do so because?

Reasons
Lack of knowledge about Axis mutual fund Axis MF gives less return compared to the others. Enjoys investing in other options No trust over the fund managers Others

No. Of Respondents
18
10% 3% 17%

Reasons
Lack of knowledge about Axis mutual fund Axis MF gives less return compared to the others. Enjoys investing in other options No trust over the fund managers Others

03 05 01 03

60% 10%

Table 42: Investor‟s who not invested in Axis MF

Chart 13: Analysis who not invested in Axis MF

Interpretation:
As per the above table and pie chart the 70% of respondents is to be invested in axis mutual fund and 30 % out of 100 total respondents say they are not investing their money in axis mutual fund. The main reason behind it they have lack of knowledge (60%) about Axis mutual fund except this 17% investors enjoys investing in other options. And only 03% respondents says they have no trust over the fund managers.

(6). If you invested in AXIS MUTUAL FUND what is your investment objective?

Investment Objective
Safety Good Return Tax Benefit Liquidity Others

No. Of Respondents
15 42 08 03 02

Table 43: Investment objective of Axis MF investor

Investment Objective
4% 3% 12% 21% Safety Good Return Tax Benefit Liquidity Others 60%

Chart 14: Analysis investment objective of Axis MF

Interpretation:
It can be seen from the following graph that the main investment objective of most of the investors is good return (60%), 21% and 12% of respondents has to invest their money in axis mutual fund for safety and tax benefit. Only 03% of respondents has the others objective towards investing in axis mutual fund.

(7).What is your Average investment period in AXISMF?

Avg. Investment Period
Less than 6 months. 6 to 12 months 12 months to 2 year. More than 2 year.

No. Of Respondents
18 35 10 07

Table 44: Avg. investment period of Axis MF Investor

Avg. Investment Period
14% 10% 26% Less than 6 months. 6 to 12 months 12 months to 2 year. More than 2 year. 50%

Chart 15: Analysis of avg. investment period of Axis MF Investor

Interpretation:
The above graph reflects the average investment period for all the 70 respondents. From the study it can be concluded that majority of 35 respondents (50%) invest in axis mutual fund from “6 to 12 months”. It is the most chosen option among all the other options because of the current market condition people are not interested in investing their money for short time like less than 6 months because return will be very less in short time period and only18 respondents (26%) invest in axis mutual fund for “less than 6 months”. Investment horizon of 10 and 07 respondents is “12 months to 2 year” and “more than 2 year.

Only 08 respondents (11%) opt for “Low risk and low return” category that again proved that it is a myth that Indian Investors are more risk averse when it comes to investment in Mutual Funds.What is your risk preference? Risk Preference High risk and high return Moderate risk and Moderate return Low risk and low return No.(8). Of Respondents 20 42 08 Table 45: Risk prefer by Axis MF investor‟s Risk Preference 45 40 35 30 25 20 15 10 5 0 42 20 8 High risk and high Moderate risk return and Moderate return Low risk and low return Chart 16: Analysis of risk prefer by Axis MF investor Interpretation: The following Bar chart explains that majority of 42 investors (60%) were ready to take “Moderate level” of risk by investing in axis mutual fund and also rest of them 20 respondents (29%) go for “High Risk and High Return” category. .

Of Respondents 20 30 12 08 Table 46: Return expected by various investor‟s Expected Return Up to 15% 25%-35% 11% 29% 17% 15%-25% More than 35% 43% Chart 17: Analysis of expected return of Axis MF investor Interpretation: If any person invested their money in axis mutual fund they obviously look for good return but if they want to earn high return than high risk is also associated with it as above graph suggests that most of the respondents 43% choose the return between 15% to 25% because they knows that the current market condition its good return they can get and very few respondents 11% choose more than 35% return which is actually very difficult to get. .(9).How much return do you expect from your Investment? Expected Return Up to 15% 15%-25% 25%-35% More than 35% No.

In open ended schemes they can enter at any time or they can exit at any time. Of Respondents 58 12 Table 47: Scheme (By Structure) prefer by investor‟s Schemes Open Ended Scheme Closed Ended Scheme Closed Ended Scheme 17% Open Ended Scheme 83% Chart 18: Analysis of scheme (By Structure) prefer by Axis MF Investor Interpretation: Above graph shows that when it comes to scheme preferences majority of the investors prefer open ended scheme 83%.(10). It is only 17%. . While investing in AXISMF which scheme (On The Basis Of Structure) do you prefer? Scheme Name Open Ended Scheme Closed Ended Scheme No. The Ratio of close ended schemes is very low.

Of Respondents 40 03 15 07 05 Table 48: Scheme (By Investment) prefer by investor‟s Investment Scheme 7% 10% Debt Fund 22% 4% Fixed Maturity Plan (FMPs) 57% Balanced Fund Equity Fund Chart 19: Analysis of scheme (By Investment) prefer by Axis MF investor Interpretation: When it comes to investment scheme preferences majority of retail investors prefer Equity Fund 57%. . followed by Balanced Schemes 22% with 04% retail investor preferring debt fund and 10% fixed income instruments like Fixed Maturity Plans (FMPs).(11). low awareness etc. When you invest in AXISMF which investment scheme will you prefer? Investment Scheme Equity Fund Debt Fund Balanced Fund Fixed Maturity Plan (FMPs) Others No. It shows that there is a huge potential for debt instruments in the market which is unearthed by retail investors due to its complexity.

2% of investor is to be influenced by both (By NAV and By Returns).5% of investor is to be influenced only by the NAV. The 17. .3% and 28.(12). Of Respondents 20 38 12 Table 49: Table of investor‟s influenced behaviour 40 35 30 25 20 20 15 10 5 0 By NAV 38 Influenced By 12 By Returns By Both Chart 20: Analysis of investor influenced behaviour of Axis MF Interpretation: Above Bar graph shows that most investor of axis mutual fund is to be influenced by it returns 54.Do you get influenced by the returns given by a fund or by the current NAV of a fund? Influenced By By NAV By Returns By Both No.

Most of the respondents (69%) buy‟s their investment products from brokers. Of Respondents 02 48 12 08 Table 50: From where investor‟s purchase Axis MF Source Of Purchase 11% 17% 3% Directly from the AMCs From Brokers From Banks 69% Other sources Chart 21: Analysis of purchase decision of Axis MF investor Interpretation: From the above Pie Chart it is clear that the Brokers play a very important role in the distribution channel of AMCS. .(13). Only few of the investors knows that they can buy directly for AMCS so they can save their 03%. This shows the importance of brokers and they also want to earn money so they gave good service to their investors and in the return they get‟s good business.From where do you purchase AXISMF? Source Of Purchase Directly from the AMCs From Brokers From Banks Other sources No.

(14). The other features axis mutual fund has also attract the investors. Of Respondents 20 25 10 15 Table 51: No.From the following features of AXISMF that attracts you most? Features Diversification Professional management Reduction in risk and transaction cost Helps in achieving long term goals No. of investor who liked the different feature of Axis MF Features Diversification 21% 29% Professional management Reduction in risk and transaction cost 14% 36% Helps in achieving long term goals Chart 22: Analysis of Axis MF features Interpretation: Above graph reflects that respondents need diversification because through this they can reduce their risk and enjoy investing in other options and the 20 respondents (29%) choose this feature. . Out of 70 respondents 25 has to like the feature Professional Management of Axis Mutual fund.

(15). services etc.How satisfied you are with your experience of investing in Axis Mutual Fund? Satisfaction Level Highly Satisfied Considerably Satisfied Reasonably Satisfied Unsatisfied Highly Unsatisfied No. Of Respondents 13 28 22 05 02 Table 52: Satisfaction level of Axis MF investor‟s Satisfaction Level 7% 3% 19% Highly Satisfied 31% Considerably Satisfied Reasonably Satisfied 40% Unsatisfied Highly Unsatisfied Chart 23: Analysis of satisfaction level of Axis MF investor Interpretation: Form above chart it can be inferred that up to this stage majority of respondents 40% are “Considerably Satisfied” when they were asked about overall experience with Axis Mutual Funds including funds. . returns.. but it remains to be seen that which category leads with the completion of survey because second best categories with preferred by investors is “Reasonably Satisfied” which means that there is more to do on Axis Mutual Fund behalf for “Customer Satisfaction”.

Chapter-6 FINDINGS .

35 21.10 HDFC Mutual Fund 0.59 27. .23 29 0.44 0.  Birla Sun Life 95-Growth Fund has invest major part of portfolio in Banking / Finance sector (13.10 37.84 Beta SD Alpha Sharpe‟s Index Treynor‟s Index Jensen‟s Index Above table shows that the HDFC MF have grater Beta as compare other fund. I can say that the AXIS MF and HDFC MF is better than Birla Sun Life MF.  HDFC Equity Growth Mutual Fund has invest major part of portfolio in Banking & Finance(22.71 -38. AXIS and HDFC MF has more Sharpe‟s and Treynor‟s performance index as compare Birla Sun Life Mutual Fund.67 36.92 42.FINDINGS  Regarding Comparative Analysis Of Mutual Funds:  PORTFOLIO:  AXIS Equity Growth Mutual Fund has invest major part of portfolio in 13.50 28.94 21.17 21.70%). So.75 45.71 38.15%) and Oil & Gas sector(15.26 Birla Sun Life Mutual Fund -0.70% sector.55 0.32%).  RETURN: Tools/Companies AXIS Mutual Fund 0.

20.  In Occupation group most of the Investors were Business man.001. only 05% of respondents.000. Investment horizon of 10 and 07 respondents is “12 months to 2 year” and “more than 2 year. between Rs. the persons within the age group of 30-40 years only 23% and the persons between the age group 40-50 are 10% of respondents.  Regarding the average investment period from the 70 respondents 35 respondents (50%) invest in axis mutual fund from “6 to 12 months” and only18 respondents (26%) invest in axis mutual fund for “less than 6 months”.  Out of 100 total 30 respondents say they are not investing their money in axis mutual fund.  In family Income group. 10. 21% and 12% of respondents has to invest their money in axis mutual fund for safety and tax benefit. Regarding Investor Perception Of Axis Mutual Fund: The study done was a tool to analyze the present setup and to know the investors perception regarding investment in Axis Mutual Fund. The main reason behind it they have lack of knowledge (60%) about Axis mutual fund except this 17% investors enjoys investing in other options.  The main investment objective of most of the investors is good return (60%). 06% and 01% from internet and other sources. The study proved fruitful and many facts came to the light.  Among 100 Respondents only 70% had invested in Axis Mutual Fund and 30% did not have invested in Axis Mutual fund.000 were more in numbers. 32% through Bank. 12% through Advertisement. 15.  Out of 100 Respondents. the second most Investors were Employees and the least were the retired person. the second most were in the Income group of 10. . The following were the findings of the study:  In Kaithal City the 62% of respondents who are below 30 years. 49% know about Mutual fund Through Financial Advisor. And only 03% respondents says they have no trust over the fund managers.001-15000 and the least were in the group of below Rs. The persons having the age equal to or above 50 years. Only 03% of respondents has the others objective towards investing in axis mutual fund.

 Out of 70. Only the 03% investors buy‟s their investment products from AMCS. Only 08 respondents (11%) opt for “Low risk and low return”  From the 70 respondents 30 respondents choose their expected return between15% to 25%. 20 respondents choose their expected return up to 15%. 12 respondents choose their expected return between 25% to 35% and 08 respondents choose more than 35% return.  From this study it is find that brokers play a very important role in the distribution channel of AMCS.  Form 70 respondents the majority of 28 respondents (40%) are “Considerably Satisfied”. followed by Balanced Schemes 22% with 04% retail investor preferring debt fund and 10% fixed income instruments like Fixed Maturity Plans (FMPs). . The 69% respondents buy‟s their investment products from brokers.5% of investor is to be influenced only by the NAV. 20 respondents (29%) choose the feature of diversification and 25 respondents (36%) has to like the feature Professional Management of Axis Mutual fund.3% and 28.  The most investor of axis mutual fund is to be influenced by it returns 54. It is only 17%.  When it comes to investment scheme preferences majority of retail investors prefer Equity Fund 57%. The 17.  The most of investors prefer open ended scheme (83%) and the ratio of close ended schemes is very low. 42 investors (60%) were ready to take “Moderate level” of risk by investing in axis mutual fund and also rest of them 20 respondents (29%) go for “High Risk and High Return” category. 13 respondents are highly satisfied and 07 respondents are unsatisfied and highly unsatisfied when they were asked about overall experience with Axis Mutual Fund.2% of investor is to be influenced by both (By NAV and By Returns). The other features of axis mutual fund has also attract the 35% investor.  Out of 70. 22 respondents (31%) are “Reasonably Satisfied”.

Chapter-7 CONCLUSION .

They think their money will not be secure in Mutual Fund.CONCLUSION The future of primary market is growing at a very high pace. which it needs to focus on. just a check to be a cautious. and if it keeps the traditional base for marketing in India. They need the knowledge of Mutual Fund and its related terms. This is not to undermine the bright future of AXIS MF. Many of people do not have invested in mutual fund due to lack of awareness although they have money to invest. which is a price sensitive market. people have accepted it as a one of the major investment avenue. People only invest in those Companies where they have faith or they are well known with them. Apart from the market growth rate the distribution industry doesn‟t seem so attractive. This study has made an attempt to understand the financial behaviour of Mutual Fund investors in connection with the preferences of Brand (AMC). Ltd. there are lots of opportunities for the Axis Bank Pvt. Taking this thing into consideration. they have a ready market. Hence the firm should be selective using growth strategies. . Channels etc. if the progress of AXIS MF goes in the same way. They can change investors‟ mind from one investment option to others. Distribution channels are also important for the investment in mutual fund. than I can say that there is bright future for AXIS MF in coming years. They have much potential to expand their distribution network in northern India. to tap the golden opportunities from the Indian market. we can say that AXIS MF has a great future ahead. is that they should have a strong network so that prompt services and availability of forms is made available to the investor at a short notice. I observed that many of people have fear of Mutual Fund. Running a successful Mutual Fund requires complete understanding of the peculiarities of the Indian Stock Market and also the psyche of the small investors. As far as the other investment products marketed by AXIS MF are concerned. Mutual funds will become one of the sought after investment avenues. The only thing. Financial Advisors are the most preferred channel for the investment in mutual fund. The company is currently following huge investment and growth strategies. Axis bank has emerged a very strong player in the field of distribution of financial product within a short period of one year time in Northern India and is giving stiff competition to all the players in the market. Products. There is little awareness about mutual fund in India. It is expanding its area of business.

Chapter-8 SUGGESTIONS & RECOMMENDATION .

 The most vital problem spotted is of ignorance. Investors should be made aware of the benefits.  Fund manager can invest in Real estate. Nobody will invest until and unless he is fully convinced.  In BSL MF scheme they have mainly invest in banking sector (13. So they should go for proper portfolio diversification.SUGGESTIONS & RECOMMENDATIONS  Instead of going with the investment in the stock market directly they should go with the mutual fund as in this case the level of risk is less. money should invest into open ended mutual fund as in case there is no lock in period. because they are the main source to influence the investors. Jensen.  Mutual Fund Company needs to give the training of the Individual Financial Advisors about the Fund/Scheme and its objective.  In the comparison of all three schemes the Axis MF scheme is the best scheme as in the case Sharpe Index & Treynor Index is good. like Sharpe.7%).  Investor should read offer document before investing in to mutual fund.  Younger people aged under 40 will be a key new customer group into the future. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing. . Treynor.  Instead of investing into the close ended mutual fund.  Investor should analysis the scheme before investing in fund. power sector because from the last 2-3 years these sectors are in boom and giving very good return.  The investor should evaluate not only the returns on the scheme but also the NAV fluctuations. so making greater efforts with younger customers who show some interest in investing should pay off.

*BIBLIOGRAPHY* .

 Fisher & Jordan: security analysis & investment management.  Tata Mcgraw Hill. 2010  MBA review-Sep.(Page 152. Sharma.(Page 321-338). 2009  Charter financial analysis-Jan.(Page 23-25).S. 2010 .(Page 94..April 2010  Southern Economist . 30th edition– (Page 378-418). 2010  Journal of finance-Dec. 98-101).57). Statistical Methods-Sultan chand publications. 313 to 335). Feb..Marketing Research 3rd edition.Business Research Methodology – (Page 138-146).December 15. 180-186).Himalya Publishing House 6th edition– (Page 272-285.(Page 6.M.23-6.  Pandey I. 175-185).Schaums statistics outline.2010  The Management Accountant .2010  Facts for you-Jan.  Kothari C. 2009  ICFAI reader-July2008. 2009  SEBI Bulletin – July.P.R.  Magazine & Journals/ Newspaper:  Economic & political weekly April-2009 – Article by V.  Pandian Punitawathy : Security Analysis & portfolio management – ( Page 145165.  Beri G..BIBLIOGRAPHY  Books:  Gupta S.  Indian journal of commerce-Jun.2009  Journal of finance-Feb.155.  Srivastva Management of Indian Financial Institutions.2009  Business world-May2009  Annual Report Of Axis Bank Ltd.-Financial Management by Vikas Publishing House.C.

moneycontrol.valueresearchonline.bslmf.com .com  www.com  www.com  www.crisilratings.com  www.com  www.bseindia.axismf.amfiindia.com  www.mutualfundsindia.com  www.com  www.com  www.crisil.com  www.nseindia. Websites:  www.hdfcmf.

*ANNEXURE * .

. Others C.10. And it does not carry any commercial value. 40-50 D. The identity of the respondent will be kept confidential. Other B. Up to Rs. Name: .. Rs. A. A. 20-30 B. Financial Advisors . Salaried E. Rs.……………………. Above 50 Phone: .000 If yes.10. (2). Advertisement C.001 to 30. My project topic is about knowing the “INVESTORS PERCEPTION TOWARDS INVESTMENT IN AXIS MUTUAL FUND”. Rs. 30-40 C. Retired B.000 E.001 to 20.. Rs..What is your Age? Pl tick (√).QUESTIONNAIRE I am doing MBA at MM Institute Of Management.What is your Occupation? Pl tick (√) A.. Business (3)..001 and above (4). A. 15. MMUMULLANA (AMBALA) and this is to acknowledge that the following survey is purely for academic purpose. Internet D.000 C. (1). how did you know about Axis Mutual Fund? Pl tick (√). 30. 20. Banks E.What is your monthly family income approximately? Pl tick (√).…………………….001 to 15000 D. Professional D.Are you aware about AXIS MUTUAL FUND and their operations? Yes No B.

A. Liquidity B. tick (√). Moderate risk and Moderate return (10). Lack of knowledge about Axis mutual fund B. 25%-35% B. Other C. 6 to 12 months. A. A. Low risk and low return (9).What is your Average investment period in AXISMF? Pl.How much return do you expect from your Investment? Pl. Have you invested in AXIS MUTUAL FUND? Pl tick (√). Safety D. B. Up to 15% C. you do so because Pl. Open Ended Scheme B. 15%-25% D. A. D. Good Return E. (8). More than 35% B. tick (√). Enjoys investing in other options D. tick (√). Tax Benefit (7). No trust over the fund managers E. Axis MF gives less return compared to the others. tick (√) A. Closed Ended Scheme . C. 12 months to 2 year. tick (√). A.(5). Less than 6 months. If you invested in AXIS MUTUAL FUND what is your investment objective ? Pl.While investing in AXISMF (On The Basis Of Structure) which scheme do you prefer? Pl tick (√). C. Others (6). Yes No If NOT invested in Axis Mutual Fund. More than 2 year. High risk and high return C.What is your risk preference? Pl.

From Brokers D. By Both (13). Professional management C. Others (12). By Returns C. Helps in achieving long term goals (15). Considerably Satisfied E. Equity Fund B. Balanced Fund D. A.Please tick (√) any one from the following features of AXISMF that attracts you most? A. Directly from the AMCs C. From Banks B. tick (√). Diversification B. A.How satisfied you are with your experience of investing in Axis Mutual Fund? Pl.From where do you purchase AXISMF? Pl tick (√). Reasonably Satisfied THANK YOU . Reduction in risk and transaction cost D. Other sources (14). A. Highly Satisfied D.When you invest in AXISMF which investment scheme will you prefer? Pl tick (√). A. Unsatisfied B. By NAV B.(11). Fixed Maturity Plan (FMPs) E. Debt Fund C. Highly Unsatisfied C. tick (√).Do you get influenced by the returns given by a fund or by the current NAV of a fund? Pl.

Others D. Reasonably Satisfied . Highly Satisfied B. tick (√). Open Ended Scheme B. 25%-35% D. Reduction in risk and transaction cost D. By NAV B. tick (√). Closed Ended Scheme (11). Diversification B. From Brokers D. Professional management C. A. Helps in achieving long term goals (15). Fixed Maturity Plan (FMPs) (12). More than 35% (10). Other sources (14). Considerably Satisfied C.When you invest in AXISMF which investment scheme will you prefer? Pl tick (√). A. From Banks B. By Both (13).While investing in AXISMF (On The Basis Of Structure) which scheme do you prefer? Pl tick (√).Do you get influenced by the returns given by a fund or by the current NAV of a fund? Pl. A. Equity Fund B. A.How satisfied you are with your experience of investing in Axis Mutual Fund? Pl. Debt Fund C. By Returns C. A. Directly from the AMCs C.From where do you purchase AXISMF? Pl tick (√).C. Balanced Fund E.Please tick (√) any one from the following features of AXISMF that attracts you most? A.

D. Highly Unsatisfied THANK YOU . Unsatisfied E.

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