PREFACE

T h e v o c a t i o n a l T r a i n i n g o f a m a n a g e m e n t s t u d e n t p l a ys a n i m p o r t a n t r o l e to develop him a well groomed professional. It is a golden opportunity for her to give the theoretical concepts with a practical shape in the field of a p p l i c a t i o n . I t g i v e s a n i d e a o f d yn a m i c a n d v e r s a t i l e p r o f e s s i o n w o r l d a s well as an exposure to the intricacies and complexities of corporate world. M y S u m m e r T r a i n i n g f o r 4 5 d a ys a t B I R L A S U N L I F E M U T U A L F U N D A M C P V T L T D … , J o d h p u r w a s a n e ye o p e n i n g e x p e r i e n c e .

I n t h e 4 5 d a ys o f e x p o s u r e I l e a r n e d a l o t o n v a r i o u s a s p e c t o f organizational structure, department, communication and their impact. N o w a f t e r 4 5 d a ys I c a n s a y o n e t h i n g f o r s u r e t h a t t h e b e s t w a y t o l e a r n is at work.

I t i s a r e a l i n t e r e s t i n g e x p e r i e n c e a n d I e n j o ye d e v e r y p a r t o f i t a n d h o p e that it would be helpful in future.

T h e 2 ye a r p r o g r a m o f M . B . A h e l p e d i n l o t s o f l e a r n i n g a n d p r o j e c t w h i c h enhance our learning by adding on to our world of knowledge. And summer training is one of the parts to enh ance our business skill.

IDBI BA

Project Report On Marketing of mutual fund & its co mparison In partial fullfillment of Institute of Fms - IIS UNIVERSITY

MBA 2011-13

Birla Sun life Mutual Fund AMC
Supervision by: Mr. Rahul-Agrawal

S u b m i t t e d b y: Akanksha_ Agrawal

TABLE OF CONTENT
1. Title Page 2. Preface 3. Acknowledgement 4. Certificate 5. Executive Summary 6. Introduction 7. Company profile 8. Organizational Structure 9. Product Profile 10. Objective & Scope 11. Research Methodology 12. Data collection & Analysis 13. Observations and findings 14. Suggestion and recommendation 15. Limitations 16. Conclusions 17.Bibliography

I am also thankful to all staff member of Birla Sun Life Mutual Fund Pvt.ACKNOWLEGMENT It is great exposure for me using my theoretical knowledge which I have learnt till 3rdtrimester of Master of Business Administration (M. I am very thankful to Mr.B. Rahul-Agrawal. As without his help and guidance this project is not possible. he share his good knowledge and guide in my project work. I thankful to Dr. It is helpful to learn real situation of industry and helpful for increasing in our practical knowledge. For giving me chance to do my project work.) in m y project work which I have done at Birla Sun Life Mutual Fund Pvt. Ltd. As he helps me whenever I need and spare his valuable time. I a m t h a n k f u l t o m y p a r e n t s a n d m y f r i e n d s a s t h e y a l w a ys motivate me and help me directly or indirectly in my project work. It is great pleasure to use knowledg e in practical way in our tenure of training. MANJU NAIRE Principal of IIS UNIVERSITY.A. Cluster Head of Birla Sun Life Mutual Fund Pvt. Ltd. . Without his this project is n o t p o s s i b l e . Ltd.

The data collected has been well organized and presented. . All the data have been well analyzed with the help of charts and graphs .EXCUTIVE SUMMURY This project has been a great learning experience for me. collected through a survey done on 100 people. at the same time it gave me enough scope to implement my analytical ability. It is purely based on whatever I learned at Birla Sun Life Mutual Fund. Some of the most i nteresting questions regarding mutual funds have been covered. Hope the research finding sand conclusions will be of use. does fund performance persists and the topping of all the servings in the form of portfolio analysis tool and its application . The second part consists of data and their analysis. It covers the topic´ need of financial advisors for mutual fund investors ´. most lucrative sectors for fund managers.All the topics have been covered in a very systematic way. Other than that the real servings come when one moves ahead. It has also covered why people don’t want to go for financial advisors? The advis ors can take further steps to approach more and more people and indulge them for taking their advices. The language has been kept simple so that even a layman could understand. a special report on Systematic Investment Plan. One can have a brief knowledge about mutual funds and all its basics through the project. Some of them are: why has it become one of the largest financial intermediaries? How investors do chose between funds? Most popular stocks among fund managers. This project as a whole can be divided into two parts : The first part gives an insight about the mutual funds and its va rious aspects.

belonging to 25 different nationalities. Chemicals. Global in vision. which include diversified and sector specific equity schemes. The Aditya Birla Group is a dominant player in all its areas of operations viz . the investment managers of Birla Sun Life Mutual Fund. is a joint venture between the Aditya Birla Group and the Sun Life Financial Services Inc. Sun Life Financial and its partners today have operations in key markets worldwide. including Canada. Branded Apparels. the Aditya Birla Group is anchored by an extra ordinary force of 100. the Philippines. Of US $31. the United States. Indonesia. Since its inception in 1994.5 billion and in the League of Fortune 500. (BSLAMC). Hong Kong. a wide range of debt and treasury products and offshore funds. Indonesia. Chartered in 1865. AT&T (USA). Japan. Fertilizers. rooted in Indian values. Cement. fund of fund schemes. Eg Philippines. Birla Sun Life Asset Management Company Ltd. Over 50 per cent of it s revenues flow from its operations across the world. Copper. The fund offers a range of investment options. a leading ITES/BPO company. and has ventured into the BPO sector with the acquisition of Trans Works. The Group's operations span 66 state of the art. of Canada. Insulators. Thailand. Sun Life Financial Sun Life Financial is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Carbon Black. Birla Sun Life Mutual fund has emerged as one of India's leading Mutual Funds managing assets of a large investor base. India. Aluminum. The joint venture brings together the Aditya Birla Group s experience in the Indian market and Sun Life s global experience . Mutual Funds.000 employees. straddling India.COMPANY PROFILE OF BIRLA SUN LIFE MUTUAL FUND The Aditya Birla Group is one of India's largest business houses. . Malaysia. Australia and China. the Tata Group and NGK Insulators (Japan). Viscose Filament Yarn. hybrid and monthly income funds. China and Bermuda. the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. The Group has strategic joint ventures with global majors such as Sun Life (Canada). Viscose Staple Fiber. Canada. Software and Telecom. Insurance. the United Kingdom. A US $28 billion corporation with a market cap. Sponge Iron.

3. sustainability of its business model and its competitive position. Providing customer delight. Passion 4. Birla Sun Life Asset Management Company has one of the largest team of research analysts in the industry. Institutionalizing system-approach in all aspects of functioning. Mission 1. 5. 2. Birla Sun Life AMC strives to provide transparent. Values 1. Creating a conducive environment to hone and retain talent. The approach is to identify companies. ethical and research-based investments and wealth management services. Achieving superior and consistent investment results. amongst other factors.BSLAMC follows a long-term. the Sun Life Financial group of companies had total assets under management of CDN $ 435 billion. Seamlessness 5. Upholding highest standards of ethical values at all times. fundamental research based approach to investment. to be the preferred employer in the industry and to be a catalyst for growth and excellence of the asset management business in India. dedicated to tracking down the best companies to invest in. Speed . Integrity Commitment 3. As of 30 June 2010. The fundamentals include the quality of the company’s management. 4. . which have excellent growth prospects and strong fundamentals. 2. Vision To be the most trusted name in investment and wealth management.

which have excellent credit-worthiness and strong fundamentals. which include diversified and sector specific equity schemes. BSLAMC will always strive to provide transparent. BSLAMC is present in 111 locations. hybrid and monthly income funds. ethical and research-based investments and wealth management services. Birla Sun Life Mutual Fund has been a catalyst towards the growth of the private sector asset management business. amongst other factors. . fund-of-fund schemes. Birla Sun Life Asset Management Company (BSLAMC) has one of the largest team of research analysts in the industry. fundamental research based approach to investment. sustainability of its business model and its competitive position.Track Record With a proven track record of over 14 years. a wide range of debt and treasury products and offshore funds. Geographical Reach Today. including 74 branches. Investment Philosophy Birla Sun Life Mutual Fund follows a long-term. dedicated to tracking down the best companies to invest in. BSLAMC also provides Private Wealth Management services. The fundamentals include the quality of the company's management. The approach is to identify companies. Product Offerings Birla Sun Life Mutual Fund offers a range of investment options.

Branding 2.³Marketing is the human activity directed at satisfying needs & wants through exchange process. for the what type of product customers want means Debt based. These four elements are: 1. PRODUCT PLANNING A product planning is a company plan for marketing its products.´ Marketing is the process of planning. In Birla Sun Life Mutual Fund. STRATEGIES RELATED PRODUCT In developing a marketing strategy of individual products. They first contact Advisors & ask.MARKRTING DEPARTMENT Marketing is a comprehensive term & it includes all resources & set of activities necessary to direct & facilitate the flow of goods & services from producer to consumer in the process of distribution. Promotion 4. product planning is done very carefully. services create exchanges that satisfy individual & organizational goals. There are four elements related to the products. . ideas. The brief study of these elements will complete the concept. Product planning means planning for the product that is to decide what type of products to be produced or what needs or requirements the product should satisfy. distribution of goods. after sales service . Packing & labeling 3. Equity Based or Low risk Product etc then they prepare few samples & give to Advisors. the seller has to comfort many decision. As per the suggestions & Response of customers they prepare the new Schemes. pricing.

the seller is granted exclusive right to the use of brand name. Second element is packing and labeling. Birla solved any Query within 48 hours. Birla send monthly valuation report of their Clint through currier. It also distributes Seasonal Gifts To their Advisor for promoting their product and motivates them. It cans a name. 1. Many marketers are of view that packing is a fifth P along with price. I n this business the actual work of company start after sales of product i. ³Birla Sun Life Mutual Fund´ also gives much important to the packing and labeling. Packing includes the activities of designing and producing the container or wrapper for product while the label identifies the product. After Sales Services include how company response to their Clint. After Sales Services. 3. Because in this industry the past performance is only measure of performance of company and it only show through paper Advertisement. logo or other symbol under trademark law. Birla also continues suggest good schemes to their current Clint.e. product. 2. 4. Birla give full attention on this segment because Mutual Fund Industry is totally service based company and required high promotion to attract the investors. Birla give Statement of their (Clint) investment free of costs. place and promotion. Branding is the art and corner stone of marketing.First one is Brand. BIRLA is known for their After Sales Services. Next is Promotion. Today promotion is one of the most important tools for stay in competition. Example: Give free Umbrella in Monsoon under Monsoon Hadaka´ Schemes to attract the advisor for promotes BIRLA’s products. BIRLA prepare and distribute its new schemes regularly with some exclusive paper advertisement. trademark. A brand identifies the seller or marketing. .

In Birla Sun Life Mutual Fund. selection jobs. .³Recruitment is a process of searching for prospective employee and stimulating encouraging them to apply for jobs in an organization´.³Personnel management means quite simply the task of dealing with human relationship with in an organization.PERSONNEL (HR) DEPARTMENT Personnel management is the most important area of any business organization. The main aim of personnel management is to manage the personnel at work. RECRUITMENT Recruitment is the process of selection for prospective employees simulating them to apply for job in the organization. In other words it is linking activity bearing to gather with jobs. It is concern with employees both as individual as well as group. Every organization has goals and objectives . The aim being to get better results with their collaboration and activity involvement in the organization activity.´³Personnel management is that phase of management which deals with the effective control and use of manpower as distinguished from other sources of power´ ORGANISATION STRUCTURE Organization is a group of people working together co-operating under ³authority´. Personnel management is a most important part in an organization. Personnel manager has got higher status in the organization. towards achieving benefit the participants and the organization. Recruitment makes it possible to acquire the number and type of people necessary to ensure the continued operation of theorganization. All the functions related with personnel department. there is a separate personnel department for achievement of goals.

second is of manager and the third is the head department in which company exists. Internal Sources a. Promotion b. SELECTION After creating if application of required number of employees secured through different sources of recruitment the selection process begins. Transfer c. Their policy for external sources is such that first they give advertisement in the newspaper and they have also contact with employment exchange through these source first of all collect application. One is the work manager. . Advertisement b. Employment c. External Sources a.There are two sources of requirement: 1. On campus requirement Employee Recommendation In ³Birla Sun Life Mutual Fund´ they are using internal sources as well as external sources. Company select employees through commercial made of three numbers. The efficiency and profitability of the concern depends mainly on proper selection of the personnel. The main purpose of selection process of selection process is it finds the right man for each job. separated and then after appropriate candidates are called for the interview. Demotion 2.

To compare mutual funds on the basis of their return and Sharpe Index. in detail the growth pattern of mutual fund industry in India and to evaluate performance of different schemes floated by most preferred mutual funds in public fund in public and private sector.OBJECTIVES OF THE STUDY The objectives of the study is to analyses. To study the people in which age and income group prefer mutual funds over other investment options. . The main objectives of this project are:-       To study about the Mutual Funds in India To study the various Mutual Funds schemes in India. To study about the risk factors involved in the Mutual Funds and How to analyze it? To study the performance indices that can be used for mutual fund comparison.

MUTUAL FUNDS .

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ENDED FUND An open-ended Mutual fund is one that is available for subscription and repurchase on a continuous basis.SCHEMES OF MUTUAL FUNDS OPEN. CLOSE –ENDED FUNDS . These Funds do not have a fixed maturity period.

Growth fund Income and debt funds  The aim of income funds is to provide regular and steady income to investors.  Such funds are less risky compared to equity schemes . Government securities and money market instruments. or balanced fund considering its investment objective. corporate debentures.  Such schemes generally invest in fixed income securities such as bonds.Funds according to investment objective A scheme can also be classified as growth fund. income fund.

These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods. commercial paper and government securities. These are appropriate for investors looking for moderate growth.  Money market funds    These funds are also income funds and their aim is to provide easy liquidity. preservation of capital and moderate income.Balance funds  The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. etc. . These schemes invest exclusively in safer short-term instruments such as treasury bills.

Gilt funds

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These funds invest exclusively in government securities. Government securities have no default.

Index funds
  These schemes invest in the securities in the same weight age comprising of an index. This schemes would rise or fall in accordance with the rise or fall in the index

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RISK ASSOCIATED WITH THE INVESTMENT IN THE MUTUAL FUNDS
Savings are invested in various investment opportunities for earning better returns. The returns of the investment depend upon the risk of such investment. All investments involve some risk. The objective of any investor is to minimize the risk and maximize returns. The value of financial assets depends on their return and risk patterns . Risk can be defined as

the chance factor in trading in which expected or perspective advantage, gain, profit or return may not materialize´ The actual outcome of investment may be less than the expected outcome. The greater is the variability in the possible outcome, the greater is the risk. Generally, the variance and the standard deviation of return are used as the alternative statistical measures of the risk of the financial asset. Similarly, co-variance measured the risk of the assets, relative to other assets in a portfolio. Some risks can be controlled by the investors. Others cannot be controlled, and they are to be borne by the investor compulsorily.

DIFFERENT TYPES OF RISK IN MUTUAL FUNDS….
Risk is an inherent aspect of every form of investment. For mutual fund investments, risks would include variability, or period-by-period fluctuations in total return. The value of the schemes investment may be affected by factors affecting capital markets such as price and volume, volatility in the stock markets, interest rates, currency exchange rates, foreign investment, changes in government policy, political, economic or other developments.

Market Risk:
At times the prices or yields of all the securities in a particular market rise or fall due to broad outside influences. When this happens, the stock prices of both an outstanding, highly profitable company and a fledgling corporation may be affected. This change in price is due to ³market risk.´

Inflation Risk:
. Sometimes it is referred to as ³loss of purchasing power´. Whenever the rate of inflation exceeds the earnings on your investment, you run the risk that you will actually be able to buy less, not more.

Credit Risk :
In short, how stable is the company or entity to which you lend your money when you invest? How certain are you that it will be able to pay the interest you are promised, or repay your principal when the investment matures?

PERFORMANCE OF MUTUAL FUND IN INDIA
Let us start the discussion of the performance of mutual funds in India from the concept of mutual fund took birth in India. The year was 1963, Unit Trust of India invited investors or rather to those who believed in savings, to park their money in UTI mutual fund. And their idea of this investment was good. For 30 years it goaled without a single second player. Though the 1988 year saw some new mutual fund companies, but UTI remained in a monopoly position. The performance of mutual funds in India in the initial phase was not even closer to satisfactory level. People rarely understood, and of course investing was out of question. But yes, some 24 million shareholders were accustomed with guaranteed high returns by the beginning of liberalization of the industry in 1992. This good record of UTI became marketing tool for new entrants. The expectations of investor touched the sky in profitability factor. However, people were miles away from the preparedness of risks factor after the liberalization. The Assets under Management of UTI was Rs. 67bn. by the end of 1987. Let me concentrate about the performance of mutual funds in India through figures. From Rs.67bn. the Assets under Management rose to Rs. 470 bn. in March 1993 and the figure had a three times higher performance by April 2004. It rose as high as Rs. 1,540bn.The net asset value (NAV) of mutual funds in India declined when stock prices started falling in the year 1992. Those days, the market regulations did not allow portfolio shifts into alternative investments. There were rather no choices apart from holding he cash or to further continue investing in shares. One more thing to be noted, since only closed-end funds were floated in the market, the investors disinvested by selling at a loss in the secondary market The performance of mutual funds in India suffered qualitatively. The 1992 stock market scandals, the losses by disinvestments and of course the lack of transparent rules in the where about rocked confidence among the investors. Partly owing to a relatively weak stock market performance, mutual funds have not yet recovered, with funds trading at an average discount of 1020 percent of their net asset value .

The supervisory authority adopted a set of measures to create a transparent and competitive environment in mutual funds. Some of them were like relaxing investment restrictions into the market, introduction of open-ended funds, and paving the gateway for mutual funds to launch pension schemes.

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

Organization of mutual fund .

Sponsor Any person acting alone or in concert with another body corporate comparable to a promoter of a company as he gets fund registered with SEBI. • • • • Sponsor Mutual Fund as Trust Asset Management Company Other Fund Constituents 1.ORGANISATION OF MUTUAL FUND A mutual fund is set up in the form of a trust. who is registered with SEBI. trustees. Sponsor acts as Settler of trust contributes initial trustee to hold the investors assets in trust. Securities . Asset Management Company (AMC) and custodian. For person to qualify as sponsor at least 40% of the initial Net worth of AMC should be contributed by him should be in the financial services business for a period of not less than five years should possess sound financial track record of over five years & should have positive net worth in all the immediately preceding five years form a trust and appoint Board of Trustees appoint AMC directly or in concert with Trustees. Trust deed to be executed by the sponsor in favor of trustees. 1908). holds the securities of various schemes of the fund in its custody. . 2. Mutual Fund as Trust Constituted as Trust under Indian Trust Act. The trust is established by a sponsor or more than one sponsor who is like promoter of a company. They monitor the performance and compliance of SEBI regulations by the mutual fund. A custodian. The trustees of the mutual fund hold its property for the benefit of the unit holders. The trustees are vested with the general power of superintendence and direction over AMC. 1882 (and registered under Indian Registration Act. which has sponsor.AMC approved by SEBI manages the fund by making investments in various types of.

approved by SEBI) At least two third should be independent Meaning of Independence¶ . . Rights of Trustees • • • • • Appoint AMC with SEBI approval Approve schemes floated by AMC Right to necessary information Remedial action to ensure that business is conducted as per SEBI regulation ± right to dismiss AMC with approval from SEBI and in accordance with regulations Ensure based on quarterly review that any shortfall in NW of AMC is made up. Trustees Eligibility of Board of Trustees or a Trustee Company • • • • • • • Not guilty of moral turpitude Not convicted (economic offence and securities laws) Not part of AMC (director. employee or officer of AMC) Appointment approved by SEBI More than one trusteeship (in mutual fund industry.3.

Other Fund Constituents I. banks. Distributors Distributor enable fund to sell units over a wide bas of investors. iii. brokers. Custodian and Depositories For safekeeping of securities and participating in clearing system through approved depository companies. updating investor records. ii. 4. Bankers Bankers are dealing with money for buy and sale of units. preparation of transfer documents. . individual agents.Obligations of Trustee • • • • • • • • • Investment Management Agreement between trustee and AMC with approval from SEBI (4thschedule) Monitoring of AMC by trustees ± right to information Right to dismiss the AMC with approval SEBI Must ensure transactions are in accordance with trust deed Ensure AMC has proper systems and procedures Due diligence in appointment of brokers Ensure AMC is managing funds independent of other activities Half yearly report of fund activities and certificate that AMC has been managing funds independent of other activities. in-house or external agency. Iv. discharging obligations for operational expenses. Entity independent of the sponsors direction and responsibility of the Trustees. paying and receiving funds for investments. Transfer Agent Transfer agents are used for used for issuing and redeeming units.

This is probably the easiest but it often takes a few days or even a week to have the funds credited to your account . which you choose to be deducted from your bank account each month. One common way is to request redemption by filling out a form or writing a letter to the mutual fund family. Objective Statement 3. . Now that you understand the basics of a prospectus. Fees and Expenses THE PROCESS TO PURCHASE AND REDEEM UNITS…… The most common method to invest in a fund once you are in it is to simply fill out investment forms and write a check to the mutual fund family. This is the most common method but it is not the only one. Performance 4. So when you finally receive the information you requested on a mutual fund.HOW TO INVEST IN MUTUAL FUND 1. Reading a Prospectus 2. look it over carefully and make an educated decision if it is right for you.The fund will also provide information on how you can redeem your shares. Another method that is common is automatic withdrawals. These allow you to have a certain amount. These are excellent for getting into the habit of investing on a regular basis . you are one step closer to getting started in mutual funds.

financial independence. Your may consider investing in a combination of schemes to achieve your specific goals. family commitments. .  Select the Ideal Mix of Schemes Investing in just one Mutual Fund scheme may not meet all your investment needs. Therefore. The offer document of the scheme tells you its objectives and provides supplementary details like the track record of other schemes managed by the same Fund Manager. which could be regular income. and level of income and expenses among many other factors.PROCESS OF INVESTING IN MUTUAL FUND  Identify Your Investment Need Your financial goals will vary. based on your age. the quantum of risk you are willing to take and your cash flow requirements. You can begin by defining your investment objectives and needs.  Choose the Right Mutual Fund The important thing is to choose the right mutual fund scheme. buying a home or finance a wedding or educate your children or a combination of all these needs. which suits your requirements. the first step is to assess your needs. lifestyle.

 Invest Regularly The best approach is to invest a fixed amount at specific intervals.  The Final Step All your need to do now is to for online application forms of various mutual fund schemes and start investing. The power of compounding lets you earn income on income and your money multiplies at a compounded rate of return. What's even more disturbing is the way the fund industry hides costs through a layer of financial complexity and jargon. Fees can be broken down into two categories: . These costs eat into your return. By investing a fixed sum each month. thus bringing down your average cost per unit. THE COST ASSOCIATED WITH MUTUAL FUNDs Costs are the biggest problem with mutual funds. say every month. If you start now. Some critics of the industry say that mutual fund companies get away with the fees they charge only because the average investor does not understand what he/she is paying for .  Start Early It is desirable to start investing early and stick to a regular investment plan. you buy fewer units when the price is higher and more units when the price is low. you will make more than if you wait and invest later. This is called rupee cost averaging and do investors all over the world follow a disciplined investment strategy. You may reap the rewards in the years to come. and they are the main reason why the majority of funds end up with sub-par performance.

This is some times also referred to as the management expense ratio (MER). The expense ratio is composed of the following: 1. this fee ensures that mutual fund managers remain in the country's top echelon of earners. Ongoing yearly fees to keep you invested in the fund.1.The Cost Of Hiring The Fund Manager(S) Also known as the management fee. Here is how certain loads work. While it sounds small. Some funds are excellent at minimizing these costs while others (the ones with the cappuccino machines in the office) are not. The Expense Ratio The ongoing expenses of a mutual fund are represented by the expense ratio.3%-1.5%. which require more expertise from managers. Here is how certain loads work . this cost is between 0. All you really need to know about loads is this: don't buy funds with loads. All you really need to know about loads is this: don't buy funds with loads . customer service. cappuccino machines. 2.Administrative Costs These include necessities such as postage. Tare just fees that a fund uses to compensate brokers or other salespeople for selling you the mutual fund. Loads are just fees that a fund uses to compensate brokers or other salespeople for selling you the mutual fund.5% and 1% of assets on average. Transaction fees paid when you buy or sell shares in a fund.2% (usually for index funds) to as high as 2%. On the whole. etc. record keeping. expense ratios range from as low as 0. You'll generally pay more for specialty or international funds. 2. The average equity mutual fund charges around1.

If you don't sell the mutual fund until the seventh year.3. 5% in the second year. If you sell a fund within a certain time frame. you don't have to pay them. and $950 will be invested in the fund. etc. Back-end loads (Also known as deferred sales charges)These are a bit more complicated. $50 will pay for the sales charge. Front-end loads These are the simplest type of load: you pay the fee when you purchase the fund. .000 in a mutual fund with a 5%. If you invest $1. The load is 6% if you sell in the first year. In such a fund you pay the back end load. 4. A typical example is a 6% backend load that decreases to 0% in the seventh year.

at a fixed interval. 3. Payment is made through post dated cheques or direct debit facilities. 2. .Systematic Withdrawal Plan If someone wishes to withdraw from a mutual fund then he can withdraw a fixed amount each month. This is called as the benefit of Rupee Cost Averaging (RCA).INVESTMENT STRATEGIES 1. to an equity scheme of the same mutual fund. The investor gets fewer units when the NAV is high and more units when the NAV is low.Systematic Investment Plan Under this a fixed sum is invested each month on a fixed date of a month .Systematic Transfer Plan Under this an investor invests in debt oriented fund and gives instructions to transfer a fixed sum.

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If the investors ignore the evaluation of funds¶ performance then he can lose hold of it anytime.    Beta. Leverage. It can merge into another fund or could be acquired by another fund house. newspapers and professional advisors like BIRLA mutual fund services. Transaction Costs. Total Return. Computing Total Return (Per Share Income and Expenses. In this ever-changing industry. The fund’s ratings may go down in the various lists published by independent rating agencies. the Expense Ratio. a technical measure of the risk associated may also surge.MEASURING AND EVALUATING MUTUAL FUND PERFORMANCE Every investor investing in the mutual funds is driven by the motto of either wealth creation or wealth increment or both. Annualized Returns and Distributions. he can face any of the following problems:    Variation in the fund’s performance due to change in its management/ objective. websites . Total Return with Reinvestment at NAV. Per Share Capital Changes. Therefore it’ s very necessary to continuously evaluate the fund’s performance with the help of factsheets and newsletters. There may be an increase in the various costs associated with the fund. . The fund’s performance can slip in comparison to similar funds. Cash Flow. Performance measures  Equity funds The performance of equity funds can be measured on the basis of: NAV Growth . Ratios. Portfolio Turnover Rate. Shares Outstanding). Fund Size.

 Debt fund Likewise the performance of debt funds can be measured on the basis of: Peer Group Comparisons. with a market index. the comparisons are usually done with 1. 2. Total Return and Expense Ratio To measure the fund’s performance. Industry Exposures and Concentrations. besides NAV Growth. besides NAV Growth. . 3. Total Return and Expense Ratio. The Income Ratio. Other similar products in which investors invest their funds. NPAs. Funds from the same peer group.  Liquid funds The performance of the highly volatile liquid funds can be measured on the basis of Fund Yield.

Studying the features of a scheme. Asset allocation. 2. It is more than mere tax planning. Selection of fund. To Mutual Funds) Investors are required to go for financial planning before making investments in any mutual fund. financial planning is concerned only with broad asset allocation. In case of mutual funds.Financial Planning For Investors (Ref. 3. The objective of financial planning is to ensure that the right amount of money is available at the right time to the investor to be able to meet his financial goals. because financial plans of users are chosen using these object lives. . A fund manager has to closely follow the objectives stated in the offer document. Steps in financial planning are 1. leaving the actual allocation of securities and their management to fund managers.

An objective provides a specific direction to an activity. Objective may range a very general and to very specific. Although this research is highly accurate. Secondary objective:    To assess an awareness of mutual fund. it does not gather the causes behind a situation. The objective basically divided into two categories Primary objective:  To find out market potential of Birla Sun Life Mutual fund. To find out how many people are interested in a dealing of mutual fund. Descriptive research is mainly done when a researcher wants to gain a better understanding of a topic for example. The main goal of this type of research is to describe the data and characteristics about what is being studied. but they should be clear enough to point out with reasonable accuracy what researcher wants to achieve through the study and how it will be helpful to the decision maker in the solving problems. a . The idea behind this type of research is to study frequencies. and other statistical calculations. averages. To study about the risk factors involved in the Mutual Funds and How to analyze it? Type of study: Descriptive research is also called Statistical Research.RESEARCH METHODOLOGY OBJECTIVES An activity done without an objective in a mind cannot turn fruitful.

. It is quantitative and uses surveys and panels and also the use of probability sampling.frozen ready meals company learns that there is a growing demand for fresh ready meals but does not know much about the area of fresh food and so has to carry out research in order to gain a better understanding. The sample was drawn from walk in customers of Birla sun life mutual funds. Sample Size: The sample consisted of 100 respondents.

o Companies should try to satisfy their customer by better customer service or by improving customer relationship management. o Customers with graduate level education are easier to sell to and there is a large untapped market there. o Mutual Fund Company needs to give the training of the Individual Financial Advisors about the Fund/Scheme and its objective. o It should more emphasize in advertising.RECOMMDATION AND SUGGESTIONS o Customer education of the salaried class individuals is far below standard. To succeed however. so making greater efforts with younger customers who show some interest in investing should pay off. because they are the main source to influence the investors o Companies should try to make people initiative towards risk. as it is the most powerful tool to position ant brand in the mindsets of customers. Thus Asset Management Company’s need to create awareness so that the salaried class people become the prospective customer of the future. advisors must provide sound advice and high quality. . because they are the main source to influence the investors o Younger people aged under 35 will be a key new customer group into the future. o Mutual Fund Company needs to give the training of the Individual Financial Advisors about the Fund/Scheme and its objective.

see more risk & become more risk adverse. Investors think that BIRLA SUN LIFE MUTUAL FUND provides better returns  The company provides a various good schemes of the mutual funds like balance fund tax saving n etc . Investors are not highly satisfied by company rules & employee behavior. Old people & Widows prefer lower risk.FINDINGS In my research I have founded following things:- • • • As the age increases investors are much satisfied.

. • The lack of information sources for the analysis part. • The study is limited to the different schemes available under the mutual funds selected.Limitations • The time constraint was one of the major problems. • The study is limited to selected mutual fund schemes.

YES 67% & NO 33% YES 67% NO .

no trust benefit not enough enjoys investing in thers own lack of knowledge 0 5 10 15 20 25 30 .

70 60 50 40 30 20 10 0 AMCs brokers brokers/sub brokers others .

helps in achiving long term gaols reducation in risk and tanscation cost profession management diversification 0 10 20 30 40 50 .

statics young unmarried stage young married with children stage married with older children stage .

70 60 50 40 30 20 10 0 .

who is interested in getting good deduction from tax? deduction in tax no yes . Are you an investor.7.

INVESTMENT OBEJECTIVE safety capital appreciation tax benefit good return .

How many investors invested in mutual fund? INVESTERS INVESTED .9.

What are the modes of investment preferred by investors? mode of investment preferred by investor systemetic investment plan one time investment .10.

11. Do you think that advertising play an important role in spreading awareness amongst investors for investing in mutual fund? advertising role no yes .

12. Which type of mutual funds do you prefer? .

type of mutual fund preferred other schemes by structure by investment objective .

13. You would like to invest in? like to invest in 35% 30% 25% 20% 15% 10% 5% 0% like to invest in .

What is your anticipated investment time frame? investment time frame short term-less than 1 year short-medium term-1 to 3 years long term.more than 7 years medium term.14.4 to 7 years .

15. How would you rate your familiarity and experience with investment? rate your familiarity familier and experienced familiar but not experienced not familiar and inexperienced .

It may lead to gain investors confidence. Thus over all good performance of the funds is a sign of development in new era in capital market. Portfolio managers at Birla Sun life have done a fairly good job in generating positive returns. Equities are especially important today with people living longer and retiring early. the investors should have patience to get good returns in Mutual Fund.  Diversified stock portfolios have offered superior long term inflation protection. as it meets investors needs perfectly.  Important thing is to note that Mutual Funds are likely to reap better returns if invested for a long period.  Mutual funds have a bright future in India is bright. . For this.

Websites:www.com www.answers.R.2007.scribd. Birla Sun Life mutual fund Brochure. Kothari. Research Methodology.com .com www. Vikas Publishing house Pvt.wiki. New Delhi.Books:C.Ltd.birla sun life.