A Project Report ON CONSUMER PERCEPTION AT
In Partial Completion of
Masters of Business Administration (MBA)
The completion of any task depends upon the co-operation, coordination and consolidated efforts of several resources of knowledge, energy, time and above all the proper guidance of the experienced. Therefore I approached this matter of acknowledgement through these lines trying my best to give full credit where it deserves. I wish to express my gratitude to those who generously helped me to compile this project with their knowledge and expertise. Firstly, I owe a great debt to mr......., Chief Manager UTI Mutual Fund, . Who were responsible for making this project possible. They have given me the opportunity to choose this topic and the necessary guidelines regarding the project to track first hand information and supporting me in the completion of the project successfully, as well as insulating a belief in me which was essential for the completion of this project. The learning during the project was of immense importance & invaluable.
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. Executive Summary UTI MF- An Introduction Subsidiaries Mutual Fund Assets Type Vision and Mission History Mutual Fund- An Introduction Corporate Profile Rights of Unit holder Organizational structure of MF Awards Different Investment Plan Types of Mutual Fund Products of UTI SIP Returns Key Terms Area of Study Consumer Buying perception- An Introduction Research Methodology Data Analyses and Interpretation Key Findings Conclusion Learning Recommendations Questionnaire Subject Page No. 5 6 7 8 9 9 18 20 24 25 27 28 29 34 42 47 48 56 61 65 73 74 75 75 77
It has huge potential growth rate in mutual fund and different financial instruments to provide reasonable options for an ordinary man to invest his savings and diversify the risk. of investment. Bank deposit etc the money acts as the driver for growth of the country. tax benefits and maturity etc. With savings invested in various Assets available to the people like Gold. Equity. returns. Young investors have an edge over others on account of their age. In other words. • Find out reason for choice of mutual fund as an investment avenue. a young age investor has a big ratio of disposable income. Mutual funds. India is seen as one of the best and deepest of markets in the world. The main objectives are • To know the awareness of mutual fund amongst the investor • To know the investors knowledge and perceptions about mutual fund. Insurance. A basic principle of investing is that the investment avenue must match the investor's risk profile.Executive Summary
UTI Mutual Fund is among one of the largest financial Institution. • To know the investor priority level between different criteria of investment like safety level. Debt market. Savings form an important part of the economy of any nation. Now.
This report will seek to cover all the fundamental aspects relating to various investments Asset classes which are available for the investors in
. Indian financial sector avails multiple avenues to the investors. It is doing its business by continuously delivering a differentiated product and services that provide high business value in return. liquidity.
Mr.amfiindia. K. U. risks etc. Jaideep Bhattacharya has awarded as best Marketing Personality of the year 2009.An Introduction
UTI AMC is one of the best Asset Management Company in India. the Trust Deed. also manages the schemes transferred/migrated from the erstwhile Unit Trust of India.India. 617 Crores* as on 31st May 2010 (source: http://www. In this report. in accordance with the provisions of the Investment Management Agreement.
UTI Mutual Fund. Recently.com/)
. This report will also tell us the customer perception about different investment instruments which are available. and the SEBI (Mutual Funds) Regulations. In UTI AMC the investment agreement is executed between UTI Trustee Company Ltd and UTI AMC on December 9 2002 UTI AMC was registered by SEBI to act as Asset Management Company for UTI Mutual Fund vide its letter of January 2003. Researcher comparing the various investment options with their growth. UTI AMC is a company incorporated under companies act 1956. The paid up capital of UTI AMC has been subscribed equally by four sponsors: State Bank of India. Bank of Baroda and Punjab National Bank.78. UTIAMC. apart from managing the schemes of UTI Mutual Fund. Current AUM of UTI Mutual Fund is Rs. returns. Sinha has awarded as a best CEO of the year 2009 and Mr. Life Insurance Corporation of India.
Focused on growth capital. UTI AMC is the largest retail Asset Management Company in India with more than 9 million investor accounts and Assets under Management of close to US$ 9. is responsible for all international business activities of UTI AMC. while unlocking superior returns for our investors.
Worldwide Mutual Fund Assets by type of fund:
. and to undertake wholesale asset management as prescribed by the Government. The Assets under Management (AUM) of UTI International Ltd stands at USD 615 mn as on September 30. 2008). Our demonstrated track record of successful investments. 1882. positions our funds among top performers in India. 2008. they propel the ambitions of passionate Indian entrepreneurs.Subsidiaries UTI Venture
UTI Venture is leading private equity firm.5bn (September 30. led by an experienced management team.
UTI International Ltd
UTI International Ltd (UTI IL) is a 100% subsidiary of UTI Asset Management Company Ltd. set up under the Indian Trust Act. UTI International Ltd. (UTI AMC).
UTI RSL (Retirement Solutions Limited)
UTI RSL has been set up to carry out the operations as Pension Fund as directed by the Board of Trustees of the New Pension System Trust.
then it is seen that the major investments equities i.
.If we see the worldwide Mutual fund Assets by the type of fund for the third quarter in 2008. 40% of the total investments. were in
Source: Investment Company Institute
Worldwide Mutual Fund Assets by Region:
By region.e. 55 percent of worldwide assets were in the Americas in the third quarter of 2008. 34 percent were in Europe and 11 percent in Africa and Asia/Pacific.
The most trusted brand. which attracted the largest number of investors in any single investment scheme over the years. named as Unit Scheme 1964 (US-64).
The history of mutual fund industry in India can be better understood divided into following phases:
. admired by all stakeholders The largest and most efficient money manager with global presence The best in class customer service provider The most preferred employer The most innovative and best wealth creator A socially responsible organisation known for best corporate governance
The formation of Unit Trust of India marked the evolution of the Indian mutual fund industry in the year 1963. UTI was set up by the Reserve Bank of India and it continued to operate under the regulatory control of the RBI until the two were de-linked in 1978 and the entire control was transferred in the hands of Industrial Development Bank of India (IDBI). UTI launched its first scheme in 1964. Unit Trust of India enjoyed complete monopoly when it was established in the year 1963 by an act of Parliament.Vision:
―To be the most preferred Mutual Fund. The primary objective at that time was to attract the small investors and it was made possible through the collective efforts of the Government of India and the Reserve Bank of India.
Establishment and Growth of Unit Trust of India . In November 1987. UTI's assets under management grew ten times to Rs 6700 crores. SBI Mutual Fund was later followed by Canbank Mutual Fund. Children's Gift Growth Fund and India Fund (India's first offshore fund) in 1986. However.Phase 1. Indian Bank Mutual Fund. six more schemes between 1981-84. It launched ULIP in 1971.196487 Unit Trust of India enjoyed complete monopoly when it was established in the year 1963 by an act of Parliament. UTI remained to be the leader with about 80% market share. Entry of Public Sector Funds 1987-1993
The Indian mutual fund industry witnessed a number of public sector players entering the market in the year 1987. GIC Mutual Fund and PNB Mutual Fund. LIC Mutual Fund. the assets under management of the industry increased seven times to Rs. By 1993. By the end of 1987. UTI launched its first scheme in 1964. Mastershare (India‘s first equity diversified scheme) in 1987 and Monthly Income Schemes (offering assured returns) during 1990s. which attracted the largest number of investors in any single investment scheme over the years. UTI was set up by the Reserve Bank of India and it continued to operate under the regulatory control of the RBI until the two were de-linked in 1978 and the entire control was transferred in the hands of Industrial Development Bank of India (IDBI). Bank of India Mutual Fund. SBI Mutual Fund from the State Bank of India became the first non-UTI mutual fund in India. named as Unit Scheme 1964 (US64).
.004 crores. Phase II. 47.
UTI launched more innovative schemes in 1970s and 80s to suit the needs of different investors.
provided a wide range of choice to investors and more competition in the industry.
Investors' interests were safeguarded by SEBI and the Government offered tax benefits to the investors in order to encourage them.1%
III.964 13. The mobilisation of funds and the number of players operating in the industry reached new heights as investors started showing more interest in mutual funds. The Union Budget in 1999 exempted all dividend incomes in the hands of investors from income tax.757 47. about 11 private sector funds had launched their schemes. By 1994-95.1992-93 UTI Public Sector Total
Amount Mobilised 11. both by SEBI and AMFI. Private funds introduced innovative products.2% 0.
The permission given to private sector funds including foreign fund management companies (most of them entering through joint ventures with Indian promoters) to enter the mutual fund industry in 1993.9% 6. with an objective to educate investors and make them informed about the mutual fund industry. Phase IV.021
Assets Under Management 38.247 8.
. Growth and SEBI Regulation 1996-2004
The mutual fund industry witnessed robust growth and stricter regulation from the SEBI after the year 1996. 1996 was introduced by SEBI that set uniform standards for all mutual funds in India. SEBI (Mutual Funds) Regulations. investment techniques and investor-servicing technology. Various Investor Awareness Programmes were launched during this phase.004
Mobilisation as % of gross Domestic Savings 5.057 1.
there was a significant growth in mobilisation of funds from investors and assets under management which is supported by the following data:
GROSS FUND MOBILISATION (RS.694 5.505 * PUBLIC SECTOR 1.14.662 10.83.190 8. CRORES) FROM 01-April-98 01-April-99 01-April-00 01-April-01 01-April-02 01-Feb.957 1.558 1.39.613 22.039 6.21.158
ASSETS UNDER MANAGEMENT (RS.643 5.90.In February 2003.732 4.48.-03 01-April-03 01-April-04 01-April-05 TO 31-March-99 31-March-00 31-March-01 31-March-02 31-Jan-03 31-March-03 31-March-04 31-March-05 31-March-06 UTI 11.246 1.98.536 12.352 1.377 59. The primary objective behind this was to bring all mutual fund players on the same level. In 1999. CRORES) AS ON UTI PUBLIC SECTOR PRIVATE SECTOR TOTAL
.259* 68.173 74.267 2.632 7.36.748 92. the UTI Act was repealed and UTI was stripped of its Special legal status as a trust formed by an Act of Parliament.20.523 2. 2. UTI was re-organised into two parts: 1.416 9.966 42. However.46.979 65.923 7.712 TOTAL 21.435 5.413 4. Assured Return Schemes) are being gradually wound up.679 13.03. The UTI Mutual Fund Presently Unit Trust of India operates under the name of UTI Mutual Fund and its past schemes (like US-64.446 PRIVATE SECTOR 7. The Specified Undertaking.551 58.192 13.64. UTI Mutual Fund is still the largest player in the industry.
.860 68. This is a continuing phase of growth of the industry through consolidation and entry of new international and private sector players.
The industry has also witnessed several mergers and acquisitions recently.31-March-99
6. There were 29 funds as at the end of March 2006. more international mutual fund players have entered India like Fidelity. examples of which are acquisition of schemes of Alliance Mutual Fund by Birla Sun Life.320
8. Sun F&C Mutual Fund and PNB Mutual Fund by Principal Mutual Fund. Franklin Templeton Mutual Fund etc.
mutual funds cannot be left far behind.A.commerce and its breakthroughs. In US.I)
Some basic facts: In US. In fact in advanced countries like the U. In India the bank deposits are about 10.S. Many have debated about the success of e. mutual funds buy. every third household is a mutual fund investor. In US. 75% of the core customer bases of mutual funds in the top 50-broking firms in the U. on-line investing continues its meteoric rise. On.50 times the MF assets.S. while in India the Net is used as a source of Information and also net is used for transaction purpose is on the initial stage but is catching up quickly with all dealing in this industry as it helps in reducing administrative cost. but it is true that this aspect of technology could and will change the way financial sectors function. the MF Industry size is about 67% of the US GDP whereas the Indian MF Industry is just 6% of our GDP. They have realized the potential of the Internet and are equipping themselves to perform better. In India for the past 3 years it has been seen that nearly 2.
.sell transactions have already begun on the net. are expected to trade on-line by 2004. Internationally.line trading is a great idea to reduce management expenses from the current 2 % of total assets to about 0. However.5 times the bank deposit.75 % of the total assets and as we start using advanced technology in this industry this cost will further cut down the administration cost. MF assets are 1.500 crore is being transferred from bank deposits to Mutual funds on a yearly basis.
As per SEBI regulations. the benefits are passed down and hence Mutual Funds are able to attract more investors and increase their asset base. Direct dealing with the fund could help the investor with their financial planning. bond funds can charge a maximum of 2.line. Such increases in volumes are expected to bring about large changes in the way Mutual Funds conduct their business. A research agency that specializes in internet technology estimates that over the next four years Mutual Fund Assets traded on.Such changes could facilitate easy access. This will increase the share of mutual funds from 34% to 40% during the period. whereas equity assets traded on-line will increase during the period from $ 246 billion to $ 1.line will grow ten folds from $ 128 billion to $ 1.25% and equity funds can charge 2. Therefore if the administrative costs are low.75% if trading is done on. lower intermediation costs and better services for all. In India. Here are some of the basic changes that have taken place since the advent of the Net. New investors would prefer online: Mutual funds can target investors who are young individuals and who are Net savvy.5% as administrative fees. Mutual funds could bring down their administrative costs to 0. brokers could get more Net savvy than investors and could help the investors with the knowledge through get from the Net. Better advice: Mutual funds could provide better advice to their investors through the Net rather than through the traditional investment routes where there is an additional channel to deal with the Brokers.227 billion. since servicing them would be easier on the Net.561 billion. Lower Costs: Distribution of funds will fall in the online trading regime by 2003.
6 million net users who are prime target for these funds and this could just be the beginning. One important reason for it is that most major players already have presence here and hence these big names would hardly like to get left behind. Some big names like Fidelity.India has around 1. The Internet users are going to increase dramatically and mutual funds are going to be the best beneficiary. Some of the older public and private sector players will either close shop or be taken over. sites like AOL offer detailed research and financial details about the functioning of different funds and their performance statistics a is witnessing a genesis in this area. There will be a large number of offers from various asset management companies in the time to come.
The asset base will continue to grow at an annual rate of about 30 to 35 % over the next few years as investor‘s shift their assets from banks and other traditional avenues.S. In the U. Principal.
. Net based advertisements: There will be more sites involved in ads and promotion of mutual funds. But this does not mean there is no room for other players. In the private sector this trend has already started with two mergers and one takeover.A fund manager must be ready to tackle the volatility and will have to maintain sufficient amount of investments which are high liquidity and low yielding investments to honour redemption. Out of ten public sector players five will sell out. Old Mutual etc. close down or merge with stronger players in three to four years. are looking at Indian market seriously. With smaller administrative costs more funds would be mobilized . The market will witness a flurry of new players entering the arena. Here too some of them will down their shutters in the near future to come.
Some like real estate funds and commodity funds also take an exposure to physical assets. but in India only the tip of the iceberg has been explored. precious metal funds and real estate funds (investing in real estate and other related assets as well.S. Swiss francs. For Example. a cable manufacturer who needs 100 tons of Copper in the month of January could buy an equivalent amount of copper by investing in a copper fund.In India. most mutual funds concentrate only on financial funds like equity and debt.S. Silver. short – term and long-term U.A there are funds to satisfy everybody‘s requirement. based fund invests a fixed percentage of it‘s corpus in Gold. the Canada based Dundee mutual fund is planning to launch gold and a real estate fund before the year-end. In the near future India too will concentrate on financial as well as physical funds. a conservative U.In the U. specific stocks on various bourses around the world. The latter type of funds are preferred by Corporate‘s who want to hedge their exposure to the commodities they deal with. Importantly. many market players have called on the Regulator to initiate the process immediately. For instance.S.). The mutual fund industry is awaiting the introduction of DERIVATIVES in the country as this would enable it to hedge its risk and this in turn would be reflected in its Net Asset Value (NAV).S.A.S. SEBI is working out the norms for enabling the existing mutual fund schemes to trade in Derivatives. so that the mutual funds can implement the changes that are required to trade in Derivatives. Permanent Portfolio Fund.
In U. treasuries etc.
. In developed countries like the U. apart from bullion funds there are copper funds.
UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs of every class of citizens. The net proceeds or losses are then typically distributed to the investors annually. it may
Mutual Fund. bonds. Dubai and Bahrain. All the mutual funds must get registered with SEBI. A mutual fund is a professionally managed type of collective investment scheme that pools money The from mutual many investors will and invests it in stocks.78. 617 Crores* as on 31st May 2010. as mutual funds. Similar funds also operate in Canada. such as unit trusts. have and/or a fund
manager that trades the pooled money on a regular basis. However. there have been three basic types of investment companies in the United States: open-end funds.Assets Under Management: UTIAMC presently manages a corpus of over Rs. and closed-end funds. mutual fund is used as a generic term for various types of collective investment investment companies vehicles. unit investment trusts (UITs). It has a nationwide network consisting 143 UTI Financial Centres (UFCs) and UTI International offices in London. short-term money market fund instruments.
(Source: http://www.amfiindia.An Introduction
Securities Exchange Board of India (SEBI) is the regulatory body for all the mutual funds. A mutual fund may be either an open-end or a closed-end fund. unitized insurance
undertakings for collective investments in transferable securities (UCITS). An open-end mutual fund does not have a set number of shares. Since 1940.S. other securities. also known in the U. and (OEICs). open-ended funds. in the rest of the world.
the first worldwide outflow recorded since the third quarter of 2002.66 trillion at the end of the third quarter of 2008. However the openend market price is influenced greatly by the fund managers. after registering net inflows of $73 billion in the second quarter.
Long-term funds had net outflows of $246 billion in the third quarter. The number of shares changes as investors buys or sell their shares. Year-to-date. Investors are able to buy and sell their shares of the company at any time for a market price. dollars was exacerbated by strengthening of the dollar.be considered as a fluid capital stock. closed-end mutual fund has a fixed number of shares and the value of the shares fluctuates with the market. 83081 crore net inflow in FY 2009-10. On the other hand. bond funds have had $39 billion in outflows. All categories of long-term funds experienced outflows. The decline in
assets reported in U. MFs records Rs.S. Money market funds experienced net inflows of $28 billion in the third quarter. Year-to-date money market funds have had $444 billion of net inflows. equity funds have had $254 billion in outflows. compared with outflows of $70 billion in the second quarter of 2008. Net cash flow to all funds was negative in the third quarter with $218 billion in outflows. It believes in having a
. and balanced/mixed funds have had $24 billion in outflows.
UTI Mutual Fund‘s investment philosophy is to deliver consistent and stable returns in the medium to long term with a fairly lower volatility of fund returns compared to the broad market. But with close-end funds.1 percent to $21. the fund manager has less influence because the price of the underlining owned securities has greater influence.
Mutual Fund Global Overview
Mutual fund assets worldwide decreased 12.
which has been fully empowered to manage funds with greater efficiency and accountability in the sole interest of the unit holders. UTIAMC has a well-qualified.
. UTI Mutual Fund follows an investment approach of giving as equal an importance to asset allocation and sartorial allocation. 1 satellite office has also been opened. It combines top-down and bottom-up approaches to enable the portfolios/funds to adapt to different market conditions so as to prevent missing an investment opportunity. With a view to reach to common investors at district level. as is given to security selection while managing any fund. professional fund management team. a risk management department is also in operation. It has a nationwide network consisting 114 UTI Financial Centers (UFCs) and UTI International offices in London.
UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs of every class of citizens. It is committed to adopt and maintain good fund management practices and a process based investment management. Dubai and Bahrain. The fund managers are ably supported by a strong in-house securities research department.balanced and well-diversified portfolio for all the funds and a rigorous inhouse research based approach to all its investments. To ensure investors‘ interests.
However.Benefits of investing in Mutual Funds:
There are several benefits from investing in a Mutual Fund: Small investments: Mutual funds help you to reap the benefit of returns by a portfolio spread across a wide spectrum of companies with small investments. Choice: The large amount of Mutual Funds offer the investor a wide variety to choose from. thus increasing his or her risk. Transparency: Mutual Funds regularly provide investors with information on the value of their investments.
. Professional Fund Management: Professionals having
considerable expertise. a mutual fund will spread its risk by investing a number of sound stocks or bonds. A fund normally invests in companies across a wide range of industries. experience and resources manage the pool of money collected by a mutual fund. An investor can pick up a scheme depending upon his risk/ return profile. so the risk is diversified. They thoroughly analyse the markets and economy to pick good investment opportunities. Spreading Risk: An investor with limited funds might be able to invest in only one or two stocks/bonds. Mutual Funds also provide complete portfolio disclosure of the investments made by various schemes and also the proportion invested in each asset type.
Flexibility: Through features such as Systematic Investment Plans (SIP). you can systematically invest or withdraw funds according to your needs and convenience. Diversification: Mutual Funds invest in a number of companies across a broad cross section of industries and sectors. problem. given the large size of the
However. this problem is even more severe for funds investing in small capitalization stocks. Return Potential: Over a medium to long term. Regulations: All the mutual funds are registered with SEBI and they function within the provisions of strict regulation designed to protect the interests of the investor. at the time of buying. You achieve this diversification through a Mutual Fund with far less money than you can do on your own. For obvious reasons. the fund ends up paying a higher price and while selling it realizes a lower price.
Limitation of Mutual Fund:
Entry and exit costs: Mutual Funds are a victim of their own success. most debt funds do not face this
. Systematic Withdrawal Plans (SWP) and dividend reinvestment plans. the concentrated buying or selling often results in adverse price movements i. excluding UTI. Mutual Funds
have the potential to provide a higher return as they invest in a diversified basket of selected securities. When a large body like a fund invests in shares. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion.
Waiting time before investment:
It takes time for a Mutual Further. Since it is difficult to invest all funds in one day. the former is not counted while measuring performance. the Fund manager under performs the benchmark index by an equal amount. registration fees etc. may be a time lag before investment opportunities are identified. there is the added problem of perpetually keeping some money in liquid assets to meet redemption. Usually. whether the fund constantly receives fresh subscriptions and redemption.
Fund management costs: The costs of the fund management process are deducted from the fund. everything else being equal. together called the expense ratio.
. This ensures that the fund under performs the index. The problem of impracticability of quick investments is likely to be reduced to some extent with the introduction of index futures. Then there is the annual asset management fee and expenses. and commensurately. ended funds. there is dome money waiting to be invested. The extent to which the portfolio changes is a function of the style of the individual fund manager. custody fees. It is also dependent on the volatility of the fund size i. called ―load‖. This includes marketing and initial costs deducted at the time of entry itself. while the later is.e. that lowers the Such portfolio portfolio return changes have associated costs of brokerage. A standard 2% expense ratio means that. there For open-
Fund to invest money.
Cost of churning: The portfolio of a fund does not remain constant.
financial position and general affairs of the scheme. Another reasons for change index composition is Mergers & Acquisitions.
Rights of Unit holders:
As a unitholder in a Mutual Fund scheme coming under the SEBI (Mutual Funds) Regulations. This is a severe problem in India with the Sensex having been changes twice in the last five years. Receive dividend within 30 days of their declaration and receive the redemption or repurchase proceeds within 10 working days from the date of redemption or repurchase. you are entitled to: Receive unit certificates or statements of accounts confirming your title within 30 days from the date of closure of the subscription under open-ended schemes or within 6 weeks from the date your request for a unit certificate is received by the Mutual Fund. with the bad stocks weeded out and replaced by emerging blue chips. Receive information about the investment policies. investment objectives. Change of index composition:
The indices keep changing over There is an
the world to reflect changing market conditions. Wind up the schemes.
inherent survivorship bias in this process. Receive communication from the Trustees about change in the fundamental attributes of any scheme or any other changes which would modify the scheme and affect the interest of the unitholders
. Vote in accordance with the Regulations to: Change the Asset Management Company. with each change being quite substantial. The weight age of the shares of a particular company in the index changes if it acquires a large company not a part of the index.
In addition many mutual funds send out newsletters periodically. To disclose your schemes‘ entire portfolio twice a year. Inspect the documents of the Mutual Funds specified in the scheme‘s offer document.
. In addition to your rights.and to have option to exit at prevailing Net Asset Value without any exit load in such cases. in case of closeended schemes. you can expect the following from Mutual Funds: To publish their NAV. unaudited financial results half yearly and audited annual accounts once a year. in case of open-ended schemes and once a week. To adhere to a Code of Ethics which require that investment decisions are taken in the best interest of the unitholders. in accordance with the regulations: daily.
who are the beneficiaries of the Trust. which is an independent body and acts as protector of the unit – holders interests. A mutual fund in India is constituted in the form of a public Trust created under the Indian Trusts Act. At least. by subscribing to ‗units‘ issued by various schemes established by the Trust as evidence of their beneficial interest in the fund. The trustees shall be accountable for and be the custodian of funds/property of respective scheme. which has sponsor. The sponsor forms the Trust and registers it with SEBI. The fund then invites investors to contribute their money in the common pool. Asset Management Company (AMC) and a custodian. 1882.
.Organizational Structure of Mutual Fund Industry:
Mutual fund is set up in the form of a trust. The trust is established by a sponsor or more than one sponsor who is like a promoter of a company. contributing to its initial capital and appoints a trustee to hold the assets of the Trust for the benefit of the unit – holders. subsidiary. Most of the funds in India are managed by the Board of Trustees. trustees. a mutual fund is just a ‗pass through‘ vehicle. The fund sponsor acts as the settler of the Trust. 50 per cent of the trustees shall be independent trustees (who are not associated with an associate. Thus. or sponsor in any manner).
The trustees of the mutual fund hold its property for the benefit of the unit-holders. The sponsor is required. The sponsor or any of its directors or the principal officer employed by the mutual fund should not be guilty of fraud. The custodian.
. if any person holds 40% or more of the net worth of an AMC shall be deemed to be a sponsor and will be required to fulfil the eligibility criteria specified in the Mutual Fund Regulations. the sponsor should contribute at least 40% to the net worth of the AMC. who is registered with SEBI. The AMC. They monitor the performance and compliance of SEBI Regulations by the mutual fund. a reputation of fairness and integrity in all his business transactions. approved by SEBI. holds the securities of various schemes of the fund in its custody. under the provisions of the Mutual Fund Regulations. to have a sound track record. Additionally. manages the funds by making investments in various types of securities. The trustees are vested with the general power of superintendence and direction over AMC. However. not be convicted of an offence involving moral turpitude or should have not been found guilty of any economic offence.
UTI Mutual Fund sweeps ICRA mutual fund Award 2009. Four ICRA 7 Star Gold Award. Lipper Fund Awards09-UTI Mahila Unit-3 yrs. CNBC-TV18-BNP Par-ibas Mutual Fund of the year Award 2006. CNBC-TV18-BNP Par-ibas Mutual Fund of the year Award 2004 ICRA online Mutual Fund Award: UTI NIFTY INDEX FUND won the award
. CRISIL-CNBC-TV18-Mutual Fund of the year Award 2007. ICRA Mutual Fund Award 2007. Reader‘s Digest Trusted Brand 2008. UTI MF wins the Best Debt Fund House Award.Gulf 2008. Loyalty Awards – 2009. Golden Peacock Innovative Product/Service Award-2008. Lipper Fund Awards09-UTI Mahila Unit-5 yrs. Top Performing Infrastructure Fund . Lipper Fund Awards.Awards
UTI MF CNBC Award 2009.Income. Four ICRA 5 Star Award. Lipper Fund Awards 2007. Lipper Fund Awards . ICRA Mutual Fund Award 2006. Brand loyalty Awards 2008.
This plan is ideal to those investors requiring regular income. are made. income is distributed from time to time. UTI Nifty Index Fund wins Gold at ICRA Online 2005. if any.
. The investor thus only realizes capital appreciation on the investment. Under the dividend plan. because they determine the flexibility available to the investor.for the year 2004. CNBC India Mutual Fund of the Year Award 2003. The different investment plans are an important consideration in the investment decision.
Dividend Reinvestment Plan
Dividend plans of schemes carry an additional option for reinvestment of income distribution. This is referred to as the dividend reinvestment plan. UTI Growth Value Fund has been ranked by CRISIL 2004. UTI Dynamic Equity Fund wins Silver at ICRA Online 2005.
What are the different investment plans that Mutual Funds offer?
The term ‘investment plans‘ generally refers to the services that the funds provide to investors offering different ways to invest or reinvest. Some of the investment plans offered by mutual funds in India are:
Growth Plan and Dividend Plan
A growth plan is a plan under a scheme wherein the returns from investments are reinvested and very few income distributions.
dividends declared by a fund are reinvested in the scheme on behalf of the investor. signature verifications and bad deliveries.
Types of Mutual Fund:
The objectives of Mutual Funds are to provide continues liquidity and higher yields with high degree of safety to investor. Investors can buy or sell units at NAV-related prices from and to the mutual fund on any business day. Based on these objectives. These schemes have unlimited capitalization.
. the issuing company directly takes the responsibility of providing an entry and an exit. Open-ended schemes are preferred for their liquidity. These funds are not generally listed on any exchange. openended schemes do not have a fixed maturity. Such funds can issue and redeem units any time during the life of a scheme. different types of Mutual Fund schemes have evolved.Under this plan. Any time entry option.
Open Ended Schemes:
Open-ended schemes do not have a fixed maturity period. This provides ready liquidity to the investors and avoids reliance on transfer deeds. unit capital of open-ended funds can fluctuate on a daily basis. The advantages of open-ended funds over close-ended are as follows: Any time exit option. thus increasing the number of units held by the investors. Hence. there is no cap on the amount investors can buy from the fund and the unit capital can keep growing. an open-ended fund allows one to enter the fund at any time and even to invest at regular intervals.
Interval Scheme combines the features of open-ended and close-ended schemes.Close Ended Schemes:
Close-ended schemes have fixed maturity periods. JM Income. provided minimum investment period is more than one year. The market price of the units could vary from the NAV of the scheme due to demand and supply factors. investors‘ expectations and other market factors.
Income/ Debt Funds These funds are low risk-low return funds. after the initial issue. Prudential ICICI Income Plan. The leading examples are monthly income funds of UTI. Investors can buy into these funds during the period when these funds are open in the initial issue. However. government securities. Alliance Liquid Fund etc. debentures. The share prices of these funds tend to be more stable in value and are best suitable for regular income investment goals. where in the investments are made in income bearing instruments such as bonds. After that such scheme cannot issue new units except in case of bonus or rights issue. They are open for sale or redemption during predetermined intervals at NAV-related prices. commercial papers etc. investors can buy or sell units of the scheme on the stock exchanges where they are listed.
where time-span is least. The NAV of such funds keep fluctuating. and IDBIPRINCIPAL Child Benefit Fund etc. The leading examples of such funds are. IDBI-PRINCIPAL Balanced Fund. but the potential to earn in such funds is higher provided they are invested with long-term (more than 5 years) financial goals. it is a combination of income and growth funds more return – more risk than income funds and less return – less risk than growth funds.These funds are high risk-high return funds. They are best suited for people looking for a combination for capital appreciation and regular income and best time – span for such investments is more than 3 years. Birla Sun Life Fund.
. Kothari Pioneer Prima Fund. Prudential ICICI Equity Fund. In all. They are best suited for capital preservation investment objectives.
Money Market Mutual Funds These funds invest in highly liquid instruments such as certificate of deposits and short-term bonds. They have emerged as an alternative for savings and short-term fixed deposit accounts. equity shares and income bearing
Balanced Funds These funds invest in both. etc. wherein major chunk of investment goes in equity shares of companies. while providing some upside for capital appreciation. The examples are PRUICICI Balanced Fund. The idea is to reduce volatility of fund.
They can invest only in the securities which are issued and traded in the domestic financial markets. It is best suited to people willing to take high risk. The market is limited and confined to the boundaries of a nation in which the fund operates. is a big problem as the number of companies are not very large and at the same time all of them are not very successful. These types of funds are subject to more risk as the performance of funds depends on the performance of the industry as a whole and also because the diversification of risk is reduced. FMCGs etc.Geographical Classification
Domestic Funds Funds which mobilize resources from a particular geographical locality like a country or region are domestic funds. Also with the new rule of government not allowing investing more than 10% in a particular company.
OTHER CLASSIFICATION Sector Funds Sector funds primarily invest in companies of a particular sector/ industry such as information technology.
Tax Saving Funds (ELSS) These funds offer tax rebate to the investor along wit capital growth and steady returns. but it gets lock-in for a period of 3 years and in return tax
. pharmaceuticals. An Equity United Savings Scheme is available wherein investments are made primarily in stocks. The investment can be made any time.
Gilt Funds These funds are sort of government funds wherein the investments are made in debt instruments of the government. IDBI-PRINCIPAL Government Securities Fund etc. The time-span matters a lot as there are chances of price volatility. Special Funds Special purpose funds are those funds that target a specific customer segments. such as children. S&P CNX 500 etc.
Index Funds Index funds invest only in stocks of a particular index such as BSE. retired people etc. 00.rebate @ 20% is obtained if investments exceed Rs. women. Another such scheme is pension scheme. 000. Making their fund oriented towards the need of the group they are targeting. These funds are best suited to the regular income and long-term investment objectives. which may lead to possibility of loss of principal invested. if invested for short-term. index. The principle is to duplicate performance of these widely followed indexes while keeping trading and other costs to a minimum. The returns in case of such funds depend on the index‘s performance.000. It is best suited to the investors who are satisfied with the returns of an
. Examples are PRUICICI Gilt Fund.60. which carry no risk of nonpayment of interest as the RBI manages the payment of interest and principal on the instruments.1. wherein tax rebate @ 20% can be obtained for investment up to Rs.
Products of UTI AMC
Equity Fund Category Diversified Funds
UTI Master Share: An equity fund aiming to provide benefit of capital appreciation and income distribution through investing in equity. derivate in India and also in overseas markets. UTI Top 100: The fund aims to provide long term capital appreciation/ dividend predominantly in equity and equity related instruments of top 100 by market capitalisation. convertible debentures. The objective of the scheme is to achieve long
term investing predominantly in a diversified portfolio of equity related
Speciality/ Theme Based Fund
. UTI Contra Fund: To provide long term capital appreciation/ dividend distribution through investments in listed equities & equity related instruments. UTI Wealth Builder: instruments. UTI Master Plus Unit Scheme: Capital appreciation through
investments in equities and equity related instruments. The fund offers an impact of non-rational investors that are currently undervalued because of emotional & perceptional patterns present in the stock market. UTI Equity Fund: It is open ended equity scheme with an objective of investing at least 80% of its funds in equity and equity related instrument with medium to high risk profile and upto 20% in debt and money market instruments with low to medium risk profile.
It aims to
provide medium to long term capital gains and/or dividend distribution by investing predominantly in equity and equity related instruments. entertainment etc. oil and gas. engineering etc. power. travel. insurances. The fund will invest in the stocks of the companies which from part of infrastructure industries. The focus of
. UTI Mid Cap Fund: An open ended fund with the objective to provide ‗Capital Appreciation‘ by investing primarily in mid cap stocks. UTI MNC Fund: The investments of funds under the scheme will be predominantly in stocks of multinational corporations and other Liquid stocks. UTI Master Value Fund: An open ended equity fund investing in stocks which are currently undervalued to their future earning potential and carry medium risk profile to provide Capital appreciation. telecom. One of the growth sector fund aiming to provide growth of capital over a period of time as well as to make income distribution by investing the funds in stocks of companies engaged in service sector such as banking. finance. UTI Services Industries Fund: An open-ended fund which invests in
the equities of the services sector companies of the country. education. UTI Leadership Equity Fund: The scheme seeks to generate capital appreciation and/ or income distribution by investing the funds in stocks that are ‗Leader‖ in their respective industries/ sectors/ sub sectors. UTI Opportunities Fund: The scheme seeks to generate capital appreciation and/ or income distribution by investing the funds of the scheme in the equity shares and equity related instruments. Building materials. which offer high dividend yield. UTI Dividend Yield Fund: An open-ended equity scheme.UTI Infrastructure Fund: An open-ended equity fund with the objective to provide capital appreciation through investing in the stocks of the companies engaged in the sectors like Metals. chemicals. training.
UTI Transportation and Logistics Fund: An open-ended Equity fund with the objective to provide Capital appreciation through investment in the stocks of the companies engaged in the Transportation and Logistics sector. These funds are targeted at investors who are bullish or fancy the prospects of a particular sector.
UTI Banking Sector Fund: open ended fund with the objective to provide ‗Capital Appreciation through investment in stocks of companies/ institutions engaged in the banking and financial services activities.the scheme is to capitalise on opportunities arising in the market by responding to the dynamically changing Indian economy by moving its investments amongst different sectors as prevailing trends change.
. (d) Companies which makes parts for energy generation. (b) Power Generation Companies.
Sector Funds: These funds invest primarily in equity shares of companies in a particular business sector or industry.(a) Petro sector. (e) Consulting and Finance Companies.II: To achieve long term capital appreciation by investing predominantly in a diversified portfolio of equity and equity related instruments along with investments in GOLD ETF‘s and Debt and Money Market Instruments. (c) Energy Storage Companies. UTI Energy Fund: Investment will be made in stocks of these companies engaged in the following areas: . UTI Pharma and Health Care Fund: An open-ended fund which exclusively invest in the equities of the Pharma and Healthcare sector companies. UTI Wealth Builder Fund Ser.
which represent the index. The money collected from the investors is invested only in the stocks. Asset Fund Category
. UTI Nifty Index Fund: The principle investment objective of the scheme is to invest in stock of companies comprising the Nifty and endeavour to achieve return equivalent to Nifty by passive investment. closely track the performance and yield of basket of securities underlying S&P CNX Nifty Index. before expenses.
3. UTI Sunder: Investment objective of the fund is to endeavour to provide returns that. UTI Master Index Fund: The principle investment objective of the scheme is to invest in securities of companies comprising the SENSEX and endeavour to achieve return equivalent to SENSEX by passive investment. Index Fund Category: These funds invest in the same pattern as popular market indices like S&P CNX Nifty or CNX Midcap 200. It aims at enabling members to avail tax rebate under section 80C of the IT act and provide them with the benefit of growth. derivatives and the balance portion in debt securities.
Tax Planning Funds
UTI Equity Tax Saving Plan: An open ended fund investing a minimum of 80% in equity and related instruments.
2. UTI Spread Fund: The investment objective of the scheme is to provide capital appreciation and dividend distribution through arbitrage opportunities arising out of price differences between the cash and derivative market by investing predominantly in equity and related securities.
UTI Retirement Benefit Pension Plan: Investment objective and policies of the scheme are primarily to provide pension in the form of
.UTI Variable Investment Scheme: This is an open-ended scheme aiming to make dividend distribution periodically. convertible and nonconvertible debentures/ bonds of companies/ corporates etc. and others capital and money market instrument subject to the condition that (1) non less than 60% of the funds will be invested in debt instruments of law to medium profile having a rating of A+ and above or equivalent at the time of investment and (2) not more than 40% of the funds in equities and related instruments. Balanced Fund Category: These funds invest both in equity shares and fixed-income-bearing instruments (debt) in some proportion. as part of the investment objective take a contrarian outlook on the equities. UTI CRTS: Investment objectives of the scheme are the primarily provide regular income to unit holders of the scheme. They are ideal for medium to long-term investors who are willing to take moderate risks.
4. UTI Balanced Fund: The scheme aims to invest in a portfolio of equity/equity related securities and fixed income securities with a view to generating regular income together with capital appreciation. The scheme will. UTI Children Career Balanced Plan: Funds collected under the plan will be invested in equities. They provide a steady return and reduce the volatility of the fund while providing some upside for capital appreciation. UTI Unit linked Insurance Plan: Investment objectives of the scheme are primarily to provide return through growth inters NAV or through dividend distribution and reinvestment thereof.
5. commercial paper and other money market instruments. UTI Monthly Income Scheme: An open-ended debt oriented scheme with no assured returns.periodical income / cash flow to the unit holders to the extent of redemption value of their holding after they complete 58 years of age. They provide a regular income to the investor. government securities. UTI MIS Advantage Plan: The investment objective of the scheme is to generate regular income through investment in fixed income securities and capital appreciation/ dividend income through investment of a portion of a net asset of the scheme in equity and related instruments so as to endeavour to make periodic income distribution to unit holders. UTI Bond Fund: The scheme will retain the flexibility to invest in the entire range of debt and money market instruments. The flexibility is being retained to adjust the portfolio in response to a change in the risk
. debt and money market instruments including securitized debt* minimum. UTI Mahila Unit Scheme: Investment objectives of the scheme is to invest in portfolio of equity/ equity related securities and debt and money market instrument with a view to generating reasonable income with moderate capital appreciation. debentures.0% to maximum 30%* investment in securitized debt will not normally exceed 20% of the net assets of the scheme. periodically. if any. UTI CCP Advantage Fund: Equity and related instruments minimum70% to 100%. Income Fund Category: These funds invest predominantly in high-rated fixed-income-bearing instruments like bonds. They are best suited for the medium to long-term investors who are averse to risk and seek capital preservation. The scheme aims at distributing income.
fixed rate debt/ money market instrument swapped for floating rate returns. money market instruments and structured obligations. They have emerged as an alternative for savings and short-term fixed deposit accounts with
. UTI G-Sec Investment Plan. Liquid Fund Category: These funds invest in highly liquid money market instruments. treasury bills. They provide easy liquidity.STP: The investment objective of the scheme is to generate credit risk.to return equation for asset classes under investment. with a view to maintain risks within manageable risks limits. 6. call money and repos.free return by way of income or growth by investing in central Government securities. UTI Treasury Advantage Fund: The scheme will endeavour to generate an attractive return for its investors consistent with capital preservation and liquidity by investing in a portfolio of quality debt securities. UTI Short Term Income Fund: To Generate Steady and Reasonable income. treasury bills. The period of investment could be as short as a day. call money and repos. UTI Floating Rate Fund: The investment objective of the scheme is to generate regular income though investment in a portfolio comprising substantially a floating rate debt/ money market instruments. UTI G-Sec STP: The investment objective of the scheme is to generate credit risk-free return by way of income or growth by investing in Central Government securities. UTI Gilt Advantage Fund: To generate credit risk-free return through investment in sovereign securities issued by the central Government and/or a State Government and/or any security unconditionally guaranteed by the central Government and/or a State government for repayment of principle and interest. with low risk and high level of liquidity from a portfolio of money market securities and high quality debt.
institutional investors and business houses that invest their funds for very short periods. with low risk and high level of liquidity from a portfolio of money market securities and high quality debt. UTI Liquid Fund Cash Plan: The investment objective of the scheme is to generate steady and reasonable income.comparatively higher returns. These funds are ideal for corporate.
. UTI Money Market Fund: To provide highest possible current income consistent with preservation of capital and providing liquidity from investing in a diversified portfolio of short term money market securities.
With SIP you don‘t require investing a
huge sum of money and start with an amount as little as Rs. Relax and accumulate wealth: accumulate wealth over long-term. Save a small amount every month/quarter and look forward to a bright future.SIP (Systematic Investment Plan):
SIP is an investment program that allows you to contribute a fixed amount (as low as Rs. Reduce risk: For efficient participation in this highly volatile market. You can also give monthly/quarterly post-dated cheques for the amount you wish to invest. Build your future: To meet largest expenses of your life like marriages.1000) in mutual funds at regular intervals. Enjoy the ease: Set yourself free from cumbersome paperwork. You can
SIP helps you average out your cost by generating superior returns in the long run. Just
identify the amount and scheme you wish to invest in and then choose from options like Auto Debit/ECS.
education or a house you need to start investing early. The amount will automatically get debited on a date of your choice. It reduces risk associated with lump sum investments.
96% 15328 55.30% 14769 45.21% 45332 15.73% 54361 28.92%
UTI Master Value Fund
.70% 52034 25.88% 49079 21.52% 89318 15.46% 53049 26.56% 43300 12.39% 16638 78.SIP Returns of two months:
SIP return for April:
1 yr.52% 15168 52.85% 16534 76.37% 93720 17.47% 14140 34.68% 97546 19. Scheme Name Diversified UTI Fund Opportunities Investment Value Yield (%) Investment Value Yield (%) Investment UTI Midcap Fund Value Yield (%) UTI Dividend Yield Fund Investment Value Yield (%) Investment UTI Equity Fund Value Yield (%) Service Industries Fund Investment Value Yield (%) Leadership Investment Value Yield (%) 14588 42.88% 82462 12.75% Investment Amount 12000
3 yr 36000
5 yr 60000
The loads have not been taken into account.73% 93414 17.00% 93374 17.35% 15436 57.03% 16556 77.Investment UTI Mastershare Value Yield (%) UTI Infrastructure Fund Sectoral Fund UTI Banking Investment Value Yield (%) Investment Value Yield (%) Investment UTI MNC Fund Value Yield (%) Investment Value Yield (%)
14469 40.20% 42673 11.73% 51582 24.54%
UTI Transportation & Logistics Fund
SIP returns are worked out assuming investment of Rs.every month at NAV per unit of the scheme as on the first working day of the respective time periods.45% 88421 15. 1000/.51%
.36% 13950 31.10% 58119 33.20%
07% 48769 20.30% 14554 42.96% 14728 45. Scheme Name Investment Amount Diversified UTI Opportunities Fund Investment Value Yield (%) Investment Value Yield (%) Investment UTI Midcap Fund Value Yield (%) UTI Dividend Yield Fund Investment Value Yield (%) Investment UTI Equity Fund Value Yield (%) Service Industries Fund Investment Value Yield (%) Investment UTI Leadership Fund Value Yield (%) Investment UTI Mastershare Value Yield (%) 13946 31.65% 12000
3 yr 36000
5 yr 60000
51423 24.72% 16213 71.66% 56670 31.94% 45881 16.18% 14039 33.75% 15895 65.14%
UTI Master Value Fund
.93% 53133 27.81% 46317 17.24% 101637 21.87% 92815 17. SIP returns for May:
1 yr.90% 53754 27.25% 91975 17.15% 13441 23.25% 13764 28.51% 83578 13.12% 43011 11.45% 89165 15.
63% 55771 30.69% 59642 35.81% 52325 25.every month at NAV per unit of the scheme as on the first working day of the respective time periods.73% 94456 18.UTI Infrastructure Fund
Investment Value Yield (%)
13230 19. 1000/.84% 148981 49.88% 15834 64.94% 112542 25. (Reference: From the Factsheet by UTI)
86217 14. The loads have not been taken into account.23%
UTI Transportation & Logistics Fund
SIP returns are worked out assuming investment of Rs.49% 95606 18.50%
Sectoral Fund UTI Banking Sector Fund Investment Value Yield (%) Investment Value Yield (%) Investment UTI MNC Fund Value Yield (%) 15222 53.74%
It may include a sales load. The NAV of an open end scheme should be disclosed on a daily basis and the NAV of a close end scheme should be disclosed at least on a weekly basis. also called Offer Price. Exit/Entry load: Is a charge collected by a scheme when it sells the units is exit load. The NAV of a mutual fund are required to be published in newspapers. NAV per unit is simply the net value of assets divided by the number of units outstanding. Is a charge collected by a scheme when it buys back the units from the unit holders is entry load Open/Close Ended: Whenever investor invest in any open ended
scheme then he can make entry and exit at any time but in close ended scheme he can exit at the time of maturity. Sales Price: Is the price you pay when you invest in a scheme.
. Re-purchase Price: Is the price at which units under open-ended schemes are repurchased by the Mutual Fund. Buying and selling into funds is done on the basis of NAV-related prices. Such prices are NAV related.Key terms:
NAV: NAV or Net Asset Value of the fund is the cumulative market value of the assets of the fund net of its liabilities.
Equity Funds Category Features Objective Master Share An equity fund aiming to provide benefit of capital appreciation and income distribution through investing in equity. dividend
instruments. 5000/Rs. The fund aims to provide long term capital appreciation/ dividend predominantly in equity and equity related instruments of top 100 by market capitalisation.
. 5000/Rs. 5000/Equity Minimum 65% and Debt maximum 35% Equity Minimum 65% and Debt maximum 35% 100% in equity in Master Value Fund open equity stocks are
to fund investing
medium to long which capital currently
and/or undervalued to their future by earning potential and carry medium
and risk profile to Capital
related provide offer appreciation. 5000/Rs. invest Rs. Asset allocation Equity Minimum 70% and Debt maximum 30% Min. Top 100 Fund Dividend Yield Fund An open-ended An equity scheme.Area of Study:
There are so many schemes were introduced by UTI AMC. due to time constraints we have only focused on following schemes. ended It aims provide term gains dividend distribution investing predominantly in equity equity which high yield.
The seeks generate capital appreciation distribution investing funds equity and related instruments.81% 2.33% 2.794 Yes 420 Dividend Growth Yes Dividend Growth Yes Dividend Growth Yes Within year 1% after that Nil Within year 1% after that Nil Within year 1% after that Nil Dividend Growth Yes
and/ or income in a diversified ‗Capital
scheme in the instruments shares along equity investments
GOLD ETF‘s and engaged Debt and Money the
. In Cr) Expense Ratio Equity Funds Category Features Mid Cap Fund Objective An open ended fund with the objective to provide ‗Capital Appreciation ‘ by investing primarily in mid caps stocks. Exit Load Within year 1% after that Nil Plans/Opti ons SIP SWP Trigger Fund Size (Rs.Amt. 2 scheme To achieve long An to term investing predominantly by portfolio the equity the equity capital ended objective provide of Appreciation and through related investment in stocks with companies/ in institutions in banking of appreciation by with open fund the to Banking Sector Fund 1.275 Yes 804 Yes 1. of Opportunity Fund Wealth Builder Fund Ser.63% Yes 2.09% 1.
the scheme is Instruments. Asset allocation Equity Minimum 90% and Debt maximum 10% Min. 5000/Rs. Exit Load Within year 1% after that Nil Plans/Optio ns Dividend Growth Dividend Growth Dividend Growth Within year 1% after that Nil Within year 1% after that Nil Rs. 5000/Equity Minimum 90% and Debt maximum 10% Equity 65% and Debt 35% or Gold ETF 35% as by its in the by to
services activities. 5000/Within year 1% after that Nil Dividend Growth
. to capitalise on opportunities arising market responding changing Indian economy moving investments amongst different sectors prevailing trends change.
SIP SWP Trigger Fund Size (Rs. In Cr) Expense Ratio
Yes 307 2.40%
Yes 1,293 2.32%
Yes 501 2.37%
Yes 123 2.50%
Balanced Funds Category Features CCP Advantage Fund Objective Equity related instruments minimum70% Children Career Balanced Plan and Funds collected Investment will be invested scheme in equities, primarily through inters Unit Linked Insurance Plan (ULIP) Retirement Benefit Pension Fund Investment and are to are policies of the to scheme return primarily growth provide NAV or pension in the of and periodical income / cash flow to the unit holders to the extent of redemption value of their
under the plan objectives of the objective
to convertible and provide
100%, debt nonconvertible and money debentures/ market instruments including securitized debt* minimum0% maximum bonds companies/ and capital to instrument subject to the
of through dividend form distribution
corporates etc. reinvestment others thereof. and
30%* investment in securitized debt not normally exceed net of scheme.
condition (1) than non 60%
that less of
holding 58 age.
they complete years
the funds will debt instruments of law to medium of A+ at of
will be invested in
20% of the profile having a assets rating the and above or equivalent the (2) than the time not
investment and more of in and 40% funds
instruments. Asset allocation Equity Minimum 70% and Debt maximum 30% Min. invest Amt. Rs. 1000/Rs. 1000/Target amount enhance to 15,00,000/- and min 15000/Exit Load 4% < 1yr 3% < 2yr 2% for 5% < 1yr Rs. 500/- to gain Rs. 10000/Equity Minimum 40% and Debt maximum 60% Equity Minimum 40% and Debt maximum 60% Not more than 40% in Equity
3% >= 1yr & < 3yr 1% >= 3yr & < 5yr Plans/Opti ons SIP SWP Trigger Fund Size (Rs. In Cr) Expense Ratio 1.40% 45.31 Income Growth Yes
2% >= 2yr & < 4yr 1% >= 4yr & < 5yr Scholarship Growth Yes
3% >= 1yr & < 3yr 1% >= 3yr & < 5yr
10yr Plan/ 15yr Plan Yes Yes Yes
Income Funds Category Features Objective Short Tern Income Fund To Generate Steady The and income, with low an Treasury Advantage Fund scheme attractive its will The Floating Rate Fund investment of is the to
Reasonable endeavour to generate objective return scheme investors generate
risk and high level for
regular though in a
of liquidity from a consistent with capital income portfolio of money preservation market and debt. high and investment securities liquidity by investing portfolio quality in a portfolio of quality comprising
debt securities, money substantially market and obligations. instruments floating structured debt/ market instruments, fixed rate
money instrument swapped floating returns. Asset allocation Min. invest Amt. Exit Load Plans/Opti ons SIP SWP Trigger Fund Size (Rs. In Cr) Expense Ratio 0.26% 0.35% 0.20% 1,371.08 29,129.52 4,965.60 1% redeemed before 90 day Income Growth and STP Yes LTP and Growth Dividend Bonus Yes Nil Equity Minimum 65% and Debt maximum 35% Rs. 30000/Rs. 100000/100% in Debt
market for rate
Fixed Debt 35% and Floating Rate Debt 65 to 100% Rs. 5000/0.75% redeemed within 3 days Dividend Growth
Liquid Funds Category Features Objective Money Market Fund Liquid Fund Cash Plan
To provide highest possible The investment objective of current income consistent the scheme is to generate with preservation of capital steady and from providing investing in and reasonable liquidity income, with low risk and a high level of liquidity from a
invest Amt.92 0.95
of portfolio of money market debt.20% 1.270.716. 1.000/Nil Income Growth and CP
short term money market securities and high quality
100% debt and money market Rs. Exit Load Plans/Options SIP SWP Trigger Fund Size (Rs. 10000/Nil Dividend Growth
5. In Cr) Expense Ratio 0. Equity Minimum 65% and Debt maximum 35% Cash PlanRs.26%
.00.diversified securities. Asset allocation Min.
credit card. Organizations are now. ―Consumer Buying perception refers to the perception of ultimate user of the product‖. Consumer is always right. “The decision processes and acts of final household consumers associated with evaluating. consumer motivation. consumer buying process and shopping perception is very much helpful to formulate a firm’s marketing strategy. Almost all major companies. consuming. consumer preferences. The free market has led to cutthroat competition among the manufacturers who are trying to capture as much market share as possible. but also expanding their operations to understand their consumer‘s demographic profile. the market used to be small and limited to a few manufacturers and consumers.
“An analysis of the consumer’s perception in terms of consumer consumption patterns. buying. finance or IT. just not only selling product or services.An Introduction
Consumer is God. sellers as well as buyers increased several folds. whether in telecommunication. but as it expanded beyond geographical boundaries. “
. Consumer is the most important guest in our premises — these are some of the phrases that have been in use since the advent of business. have realized the importance of consumer and are therefore trying to retain their loyalty. buying perception and preferences in order to build long-lasting relationship. and discarding products for personal consumption.Consumer Buying perception.
According to Phillip Kotler.
Understanding these issues helps us adapt our strategies by taking the consumer into consideration. signs..
The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how The psychology of how consumers think. Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome. media). The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers. when and how consumers buy.g. reason.Objectives of studying Consumer Buying perception:
Buyers‘ reactions to a firms marketing strategy has a great impact on the firms‘ success.. brands. The psychology of how the consumer is influenced by his or her environment (e. products). by understanding that a
. therefore need to analyse the what. and select between different alternatives (e. family. The perception of consumers while shopping or making other marketing decisions. How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer.
Marketers can better predict how consumers will respond to marketing strategies. where. and How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. feel. culture. For example.g.
By understanding the consumer. but at other times will be persuaded more by emotional or symbolic appeals. Consumer perception is affected by a host of variables ranging from personal. personality characteristics. The essence of modern marketing lies in building of profit along with creating meaningful value satisfaction for the costumers.
All the business activities should be carried out in ways which are directed towards the satisfaction of the consumer needs. We also learn that consumers will sometimes be persuaded more by logical arguments.number of different messages compete for our potential customers‘ attention. So the ultimate objective of a business firm is to create a consumer who is said to be pivot around which the entire business of a firm revolves. Therefore. professional needs. The marketing concept is consumer oriented and the emphasis is more on the consumer rather than on the product. whose needs and desires have to be coordinated with the set of products and production programmes. advertisements must usually be repeated extensively. Therefore.
. we will be able to make a more informed decision as to which strategy to employ. The essence of modern marketing lies in building of profit along with creating meaningful value satisfaction for the costumers. marketing success an enterprise depends as its ability to create a community of satisfied consumers. marketing success an enterprise depends as its ability to create a community of satisfied consumers. we learn that to be effective. attitudes and values. whose needs and desires have to be coordinated with the set of products and production programmes. All the business activities should be carried out in ways which are directed towards the satisfaction of the consumer needs. Thus the marketing concept is consumer oriented and the emphasis is more on the consumer rather than on the product.
perceptions and attitudes. Satisfaction of the consumers becomes the most important goal of a business enterprise. therefore need to analyze the what.
Marketing starts with the consumers and ends with the consumer.
Marketers can better predict how consumers will respond to marketing strategies. colleagues. professional status to social influences of various kinds exerted a family. The combination of these factors help the consumer in decision making further Psychological factors that as individual operate consumer across the needs. The effort to ensure consumer satisfaction lies in understanding the consumer. Consumer Buying perception refers to the buying perception of the ultimate consumer. where. The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers. which different types of people perception. age. motivations. Buying perception is the decision processes and acts of people involved in buying and using products. A firm needs to analyze buying perception for:
Buyers‘ reactions to a firms marketing strategy has a great impact on the firms‘ success. his expectations and motivation. when and how consumers buy. his likes dislikes. friends. influence the their learning process personality characteristics are the similarities. and society as a whole. gender.social economic and cultural background.
Gold and Life Insurance.The Investor Prospective Towards Various Assets
Risk Tolerance High
Investment Horizon Long
Flexible all Terms
This table shows investors prospective towards Assets like Equity. Bank Deposit.
. PPF. Mutual Fund. Risk tolerance & Time horizon for different Asset Classes. From this table it is clearly understand the Investment objective.
It aims at generating new ideas. A review of pertinent literature. which is a purposive investigation.RESEARCH METHODOLOGY
Research is a systematic activity carried out in the pursuit of truth. It is a way of finding new ways of looking a familiar thing in order to explore ways of changing it.
. benefits & limitations of the project. objectives. corrects and verifies knowledge. It is an activity that extends. An experience survey. It attempts to see what is there rather than predicting the same. Over here researcher has applied exploratory research which will take into consideration the following points.
Limitations: It is a pilot studies thus usually an ill structured. It helps in assessing the feasibility of further study. It is not specific in nature. An analysis of insight stimulating cases
Advantage: It does not have formal or rigid design. It includes introduction of the study.
liquidity. Post Office Savings and Insurance. To know the investor priority level between different criteria of investment like safety level. Various investment options have been selected like Mutual Fund. Bank Deposits.Research Objectives:
To know the Consumer perception of investors towards Mutual Funds. returns.
Secondary Objectives: To know people‘s awareness about various schemes for investment in Mutual Fund. Find out reason for choice of mutual fund as an investment avenue. of investment. Gold.The science dealing with principles of procedure in research and study. To identify the social factors that affect investors‘ buying perception in Ahmedabad. Various parameters taken for comparison
METHODOLOGY. Find out reason for choice of mutual fund as an investment avenue. To know the investors knowledge and perceptions about mutual fund. To measure the satisfaction level of investors regarding various parameters for investment in Mutual fund. tax benefits and maturity etc.
questionnaire was prepared to study the investors‘ perception. This survey included face-to-face interview with respondents.
. Sampling Element: High Net worth Investors (HNI) and middle class retail investors. Primary data were collected directly from the respondents to solve the problem. Risks Time Horizon Return on Investment Liquidity
Type of Data
Primary Data: Utilizing the information from the Secondary data.
Sampling Plan Target population: Investor who invests money into various investment options. websites and company‘s report.
Survey method was adopted to gather the primary data.
Secondary Data: Secondary data were collected from many sources like books.
Sampling technique: The sampling technique used for sampling is: Random sampling. Convenience sampling
Sample size: The sample size of the study is around 60 respondents. Quantitative Sampling.
Area of Survey: Ahmedabad
The main statistical tools used for the collection and analyses of data in this project are: Questionnaire Pie Charts Bar Diagrams
Limitations: As we limited time span so it is not possible to cover each & every detail of the topic. hence the authenticity of data can be a limitation. Company uses various software‘s which have certain financial information and I as a trainee cannot access them.Data Analysis and Interpretation:
Data analysis will be done through graphical method and using SPSS software and Chi square test.
1.30 years 31 years . Result will be given on the basis of the descriptive statistical technique. where questionnaire will be analyzed and various test will be performed on it to reach to the final conclusion. sample errors are inevitable. The study will heavily depend on primary data which will be collected from public at large. Age Group: Frequency 18 years . As the samples are taken randomly and population size of Ahmedabad is large.40 years 41 years .50 years Above 50 years
9 30 9 12
Per cent 15 50 15 20
From the above chart.40 years 41 years . Business or Job/service Frequency Business Job 6 54 Per cent 10 90
2. it can be derived that most of the investors are in the age group of 31 to 40. This would help us to know to whom we have to target.50 50 40 30 20 9 10 0 18 years . they have enough money to invest in risky market because they have job and they are well settled.50 years Above 50 years 15 9 15 12
Frequency Per cent
From the questionnaire we got different age groups.30 years 31 years . The reason being.
Through this we come to know that we should target on investor who is in job.100 80 60 40 20 0 Business 6 10 54
Frequency Per cent
Most of the people. have jobs and we met very few business class people who are likely to invest in market. Annual Income Frequency Up to 2 lac 2 lac to 5 lac Above 5 lac 6 39 15 Per Cent 10 65 25
70 60 50 40 30 20 10 0
39 25 6 10 15 Frequency Per Cent
Up to 2 lac
2 lac to 5 lac
Above 5 lac
3. who are interested in investment.
most of the investors belong to income group of 2 lac to 5 lac.As per income status. From this we come to know that investors belong to income group 2 lac to 5 lac invests more than above 5 lac. Where do you invest? Frequency Bank Deposit Share Market Mutual Fund Others 12 24 15 9 Per Cent 20 40 25 15
40 40 30 20 20 10 0 Bank Deposit Share Market Mutual Fund Others 12 24 15 9 25 15 Frequency Per Cent
From the above table we have come to know that the preference of the different investment of the investor while investing their money that is bonds & insurance products are most important important for the investors. Participants in the stock market range from small individual stock to large hedge fund traders. As per above chart. Are you regular investor?
Frequency Yes No 42 18
Per cent 70 30
80 60 40 20 0 42
Frequency Per cent
. The size of the world stock market was estimated at about $36. about 40% investor invest in share market. investment avenue for the investors.6 trillion US at the beginning of October 2009. who can be based anywhere. Most of the investors like to invest in share market. Than after money market instrument and equity share are
5. That‘s reason why more people invest in stock market.
Most investors try to time the market and often get unduly influenced by market rumors and tips and end up making losses on investments that lack rationale.
6. but have to rely on stock tips from friends or rumors doing rounds of the stock market.Most of the investors choose to make safe investments for the long-term. criteria‘s for the investors while investing in mutual fund. Do you want to invest in Mutual Fund?
Frequency Yes No 27 33
Per cent 45 55
60 50 40 30 20 10 0 Yes 27 45 33
Frequency Per cent
From the above table we have come to know criteria‘s considered while investing in MF by the investors that is finance planner advice and the AMC image are most important important. Than after fund performance and tax incentive are
. We concluded from the data that about 70% people we met are regular investor and only 30% investors invest occasionally.
The major challenge is that how we can convert their investments from other money market instruments towards mutual fund.From the surveys which we have done.
7. Would you like to have information on Mutual Fund?
8. Are you aware about all the features of Mutual Fund? Frequency Yes No 36 24 Per cent 60 40
60 60 50 40 30 20 10 0 Yes No 36 24 40 Frequency Per cent
The investor who knew about mutual fund intensely is 60% and others are not aware about mutual fund schemes and mutual fund as a system. we have come to know that the people who want to invest in mutual fund are less than the people who want to invest in other money market instruments.
we come to know the purpose to investing in MF is that low risk and collective investments are most important purpose of the investor for the investing in mutual fund. 9. From that 40% people only 8% want to have full information. From the survey. there are 40% people are not aware about mutual fund and 60% are aware of the mutual fund. Than after return potential and advantage of professional management are important while investing in mutual fund.Frequency Yes No 24 36
Per cent 40 60
60 60 50 40 30 20 10 0 Yes No 24 40 36 Frequency Per cent
As above. What do you consider during making any investment?
Frequency Transparency 27
.Liquidity Returns Tax Saving Regular Income Risk
30 30 25 20 15 10 5 0 18 27
18 30 18 25 18
25 18 18
From the above table we have come to know that the important criteria considered by most of the investors more about the returns and focus equally on regular income and transparency. This helps us to know that to what scheme does investor is looking for. These also help us to easily crack the deal. So there should such schemes which provide them what they actually want or they consider while investing.
48% have shown interest to invest in mutual fund.Rs. Convenience and risk are most important criteria considered by the investor while investing their money. It help to know about the preferences of investors it give them knowledge about the different investment options available for investment.000.Key Findings
This training program has played a significant role in understanding the Consumer perception.10000/In this current scenario Mutual Funds & Bank deposits become the most preferred investment option. Tax benefit and safety of the investment are most important objective of the investors. Income fund & specialized fund are most important for the investing in mutual fund. 50. Yield and return is the most important preference at the time of investment. 66% people have income level of Rs. Age group & Income is the most important factor in determining the risk capacity of individual
. Now a day‘s investors want to invest their money for long term prospective to reach their financial goal and maximizing wealth. Our Key findings are as follows: 69 % people are aware of the mutual fund.
A prudent product design by adding the features expected by investors and spelt out in this research will make the new mutual fund products attractive for the Indian investors. The small investors purchase perception does not have a high level of coherence due to the influence of different purchase factors. The factors identified in the study provide key information inputs regarding investor‘s preferences and priorities that will guide future mutual fund product managers in designing attractive mutual fund products for the Indian market.
. The buying intent of a mutual fund product by a small investor can be due to multiple reasons depending upon customers risk return trade off. The bond market is also passing through a recession due to its interest parity with bank instruments.Concluding Observation:
The present study looks at customer expectation levels in a mutual fund product. investors are looking for an alternative for their small time investments which will provide them a higher return and also safety to their investments. This kind of customer orientation is necessary in a market like India where the market is turning competitive due to large number of players with varied financial muscle powers and expertise of reinvestment. So mutual funds offer the best alternative to the small investors in India. Due to the reduction in the bank interest rates and high degree of volatility in Indian stock market.
Transparency and Low Transaction Cost. Risk Reduction. Investors are concerned about the returns. but many people are still unaware about various schemes of mutual fund. About 70% of investors are regular investors. MF is good investment tool because of several benefits like Professional Management. and Equity in Long Term so more investors are diverted towards it.
. the concept is widely known. especially for the new comer. Mutual Fund. Fixed Deposit. so there is need to catch that market as well. increasing awareness is also very important thing. Age group & Income is the most important factor in determining the risk capacity of individual
Most of the investors belong to age category of 30 to 40. Income group of 2 lac to 5 lac is making more investment than others. Post. Flexibility.Learning:
Convenience & risk are most important criteria considered by the investor while investing their money. As Mutual Fund provides more returns than PPF. so there is huge market available for new and young investor. Bonds. Fresher are not able to make huge investment at once so there should be one scheme. so there is scope and market for mutual fund in this market. Tax benefit and safety of the investment are most important objective of the investors.
www.Sunita Abraham & Uma Shashikant
.about. transparency and regular income than risk and liquidity.com www.com
Mutual Fund Investors Guide
Trainer Note AMFI
Fact sheet of UTI mutual fund Understanding Mutual Fund.com www.
There is a need to introduce very aggressive scheme which can give maximum returns to investor as they are more concern about return.mutualfunds.amfiindia.com www.
Annual Income: Up to 2 lac 3. What do you do for saving your Tax? Page 78 Share Market 2 lac to 5 lac Above 5 lac Job/Service
. If not. Where do you invest? Bank Deposit Mutual Fund Others_____________________________________ 4.:__________________ Designation:__________________ Professional Details: 1.) Personal Details: Name: ____________________________________________Age:__________ Address:_________________________________________________________ E-Mail: ______________________________Contact No. If in Mutual Fund than in which scheme _________________________________________________________ ___________________________________________________________ 6.Questionnaire. Business 2.UTI AMC
Kunjkant Pandya Management Trainee 09978426133
Anjali Kathuria Management Trainee 08905573195
(Note: This information is used only for academic Purpose. Are you a regular investor? Yes No 5. Want to invest in Mutual Fund in Future Yes No 7.
___________________________________________________________ ___________________________________________________________ 8. Are you aware about all the features of Mutual Fund? Yes Yes Transparency Tax Saving No No Liquidity Regular Income Returns Risk 9.What do you consider during making any investment?
. Would you like to have information on Mutual Fund? 10.