A Project Report ON CONSUMER PERCEPTION AT

In Partial Completion of

Masters of Business Administration (MBA)

SUBMITED TO:

SUBMITED BY:

Page 1

ACKNOWLEDGEMENT

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.

Page 2

INDEX
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

Page 3

liquidity. Insurance. Bank deposit etc the money acts as the driver for growth of the country. tax benefits and maturity etc. India is seen as one of the best and deepest of markets in the world. Debt market. With savings invested in various Assets available to the people like Gold. a young age investor has a big ratio of disposable income. Indian financial sector avails multiple avenues to the investors. • Find out reason for choice of mutual fund as an investment avenue. Now. In other words. Savings form an important part of the economy of any nation. Young investors have an edge over others on account of their age. • To know the investor priority level between different criteria of investment like safety level. Mutual funds. returns.Executive Summary UTI Mutual Fund is among one of the largest financial Institution. 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. A basic principle of investing is that the investment avenue must match the investor's risk profile. It is doing its business by continuously delivering a differentiated product and services that provide high business value in return. of investment. This report will seek to cover all the fundamental aspects relating to various investments Asset classes which are available for the investors in Page 4 . The main objectives are • To know the awareness of mutual fund amongst the investor • To know the investors knowledge and perceptions about mutual fund. Equity.

returns. The paid up capital of UTI AMC has been subscribed equally by four sponsors: State Bank of India.India. the Trust Deed. Sinha has awarded as a best CEO of the year 2009 and Mr. UTIAMC. also manages the schemes transferred/migrated from the erstwhile Unit Trust of India. 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. UTI AMC is a company incorporated under companies act 1956.78.amfiindia. UTI Mutual Fund. and the SEBI (Mutual Funds) Regulations. Recently. 617 Crores* as on 31st May 2010 (source: http://www. Bank of Baroda and Punjab National Bank.com/) Page 5 . Jaideep Bhattacharya has awarded as best Marketing Personality of the year 2009. apart from managing the schemes of UTI Mutual Fund. This report will also tell us the customer perception about different investment instruments which are available. in accordance with the provisions of the Investment Management Agreement. Researcher comparing the various investment options with their growth. risks etc. In this report. K. U.An Introduction UTI AMC is one of the best Asset Management Company in India. Current AUM of UTI Mutual Fund is Rs. Life Insurance Corporation of India. Mr.

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. UTI International Ltd UTI International Ltd (UTI IL) is a 100% subsidiary of UTI Asset Management Company Ltd.5bn (September 30. led by an experienced management team. The Assets under Management (AUM) of UTI International Ltd stands at USD 615 mn as on September 30. 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. 1882. (UTI AMC). positions our funds among top performers in India. and to undertake wholesale asset management as prescribed by the Government. set up under the Indian Trust Act. 2008. UTI International Ltd. 2008). Focused on growth capital.Subsidiaries UTI Venture UTI Venture is leading private equity firm. is responsible for all international business activities of UTI AMC. Worldwide Mutual Fund Assets by type of fund: Page 6 . Our demonstrated track record of successful investments. they propel the ambitions of passionate Indian entrepreneurs. while unlocking superior returns for our investors.

34 percent were in Europe and 11 percent in Africa and Asia/Pacific. 40% of the total investments.If we see the worldwide Mutual fund Assets by the type of fund for the third quarter in 2008. 55 percent of worldwide assets were in the Americas in the third quarter of 2008. then it is seen that the major investments equities i. Page 7 .e. were in Source: Investment Company Institute Worldwide Mutual Fund Assets by Region: By region.

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).‖ Mission:       The most trusted brand. The history of mutual fund industry in India can be better understood divided into following phases: Page 8 . 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. which attracted the largest number of investors in any single investment scheme over the years.Vision: ―To be the most preferred Mutual Fund. named as Unit Scheme 1964 (US-64). 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 History: The formation of Unit Trust of India marked the evolution of the Indian mutual fund industry in the year 1963. 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.

Phase II.004 crores.Phase 1. which attracted the largest number of investors in any single investment scheme over the years. By 1993. 47. UTI's assets under management grew ten times to Rs 6700 crores. However. Page 9 . UTI launched more innovative schemes in 1970s and 80s to suit the needs of different investors. six more schemes between 1981-84. SBI Mutual Fund was later followed by Canbank Mutual Fund. SBI Mutual Fund from the State Bank of India became the first non-UTI mutual fund in India. 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).196487 Unit Trust of India enjoyed complete monopoly when it was established in the year 1963 by an act of Parliament. Establishment and Growth of Unit Trust of India . UTI remained to be the leader with about 80% market share. Bank of India Mutual Fund. named as Unit Scheme 1964 (US64). By the end of 1987. LIC Mutual Fund. the assets under management of the industry increased seven times to Rs. Children's Gift Growth Fund and India Fund (India's first offshore fund) in 1986. It launched ULIP in 1971. In November 1987. 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. Mastershare (India‘s first equity diversified scheme) in 1987 and Monthly Income Schemes (offering assured returns) during 1990s. GIC Mutual Fund and PNB Mutual Fund. UTI launched its first scheme in 1964. Indian Bank Mutual Fund.

1% Phase III. SEBI (Mutual Funds) Regulations. By 1994-95. investment techniques and investor-servicing technology.757 47.9% 6. Private funds introduced innovative products. about 11 private sector funds had launched their schemes. Growth and SEBI Regulation 1996-2004 The mutual fund industry witnessed robust growth and stricter regulation from the SEBI after the year 1996.247 8. Phase IV. 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. Emergence of Private Sector Funds - 1993-96 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 1993.021 Assets Under Management 38.057 1. provided a wide range of choice to investors and more competition in the industry. 1996 was introduced by SEBI that set uniform standards for all mutual funds in India. with an objective to educate investors and make them informed about the mutual fund industry.1992-93 UTI Public Sector Total Amount Mobilised 11. The Union Budget in 1999 exempted all dividend incomes in the hands of investors from income tax.004 Mobilisation as % of gross Domestic Savings 5. both by SEBI and AMFI.2% 0.964 13. Investors' interests were safeguarded by SEBI and the Government offered tax benefits to the investors in order to encourage them. Page 10 . Various Investor Awareness Programmes were launched during this phase.

21.551 58. The Specified Undertaking.-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. Assured Return Schemes) are being gradually wound up.643 5.979 65.446 PRIVATE SECTOR 7.732 4.435 5.712 TOTAL 21.173 74.505 * PUBLIC SECTOR 1.190 8.259* 68.In February 2003.536 12. The primary objective behind this was to bring all mutual fund players on the same level.20.46.246 1.192 13.377 59. UTI was re-organised into two parts: 1.90.039 6.158 ASSETS UNDER MANAGEMENT (RS. In 1999.613 22.632 7.352 1.98.83. The UTI Mutual Fund Presently Unit Trust of India operates under the name of UTI Mutual Fund and its past schemes (like US-64.679 13. 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. CRORES) AS ON UTI PUBLIC SECTOR PRIVATE SECTOR TOTAL Page 11 .267 2.36. the UTI Act was repealed and UTI was stripped of its Special legal status as a trust formed by an Act of Parliament.523 2. CRORES) FROM 01-April-98 01-April-99 01-April-00 01-April-01 01-April-02 01-Feb.64.413 4.48.957 1.14.03.39.662 10.966 42.416 9. UTI Mutual Fund is still the largest player in the industry. 2.694 5.923 7.558 1. However.748 92.

Sun F&C Mutual Fund and PNB Mutual Fund by Principal Mutual Fund. Page 12 . Franklin Templeton Mutual Fund etc. There were 29 funds as at the end of March 2006.472 Phase V.31-March-99 53. Simultaneously. more international mutual fund players have entered India like Fidelity. This is a continuing phase of growth of the industry through consolidation and entry of new international and private sector players.320 8.292 6. examples of which are acquisition of schemes of Alliance Mutual Fund by Birla Sun Life. Growth and Consolidation - 2004 Onwards The industry has also witnessed several mergers and acquisitions recently.860 68.

They have realized the potential of the Internet and are equipping themselves to perform better. on-line investing continues its meteoric rise. In US. mutual funds cannot be left far behind. Many have debated about the success of e.5 times the bank deposit. every third household is a mutual fund investor.S. 75% of the core customer bases of mutual funds in the top 50-broking firms in the U. In India the bank deposits are about 10. In fact in advanced countries like the U. mutual funds buy.75 % of the total assets and as we start using advanced technology in this industry this cost will further cut down the administration cost. However.I) GLOBAL SCENARIO Some basic facts: In US.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. On. MF assets are 1. but it is true that this aspect of technology could and will change the way financial sectors function. are expected to trade on-line by 2004.500 crore is being transferred from bank deposits to Mutual funds on a yearly basis. Internationally. Page 13 . the MF Industry size is about 67% of the US GDP whereas the Indian MF Industry is just 6% of our GDP.line trading is a great idea to reduce management expenses from the current 2 % of total assets to about 0. In India for the past 3 years it has been seen that nearly 2.commerce and its breakthroughs.A.sell transactions have already begun on the net.50 times the MF assets. In US.

Direct dealing with the fund could help the investor with their financial planning. brokers could get more Net savvy than investors and could help the investors with the knowledge through get from the Net. This will increase the share of mutual funds from 34% to 40% during the period.5% as administrative fees. bond funds can charge a maximum of 2. the benefits are passed down and hence Mutual Funds are able to attract more investors and increase their asset base. Mutual funds could bring down their administrative costs to 0. Therefore if the administrative costs are low. Lower Costs: Distribution of funds will fall in the online trading regime by 2003. A research agency that specializes in internet technology estimates that over the next four years Mutual Fund Assets traded on. since servicing them would be easier on the Net.25% and equity funds can charge 2. Page 14 . Here are some of the basic changes that have taken place since the advent of the Net.Such changes could facilitate easy access.line will grow ten folds from $ 128 billion to $ 1.line. 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.75% if trading is done on. As per SEBI regulations.561 billion. Such increases in volumes are expected to bring about large changes in the way Mutual Funds conduct their business. whereas equity assets traded on-line will increase during the period from $ 246 billion to $ 1.227 billion. lower intermediation costs and better services for all. In India. New investors would prefer online: Mutual funds can target investors who are young individuals and who are Net savvy.

Some big names like Fidelity.India has around 1. Net based advertisements: There will be more sites involved in ads and promotion of mutual funds. 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.6 million net users who are prime target for these funds and this could just be the beginning. Some of the older public and private sector players will either close shop or be taken over. are looking at Indian market seriously. In the private sector this trend has already started with two mergers and one takeover. The Internet users are going to increase dramatically and mutual funds are going to be the best beneficiary. With smaller administrative costs more funds would be mobilized . Principal. The market will witness a flurry of new players entering the arena.S. Old Mutual etc. There will be a large number of offers from various asset management companies in the time to come. But this does not mean there is no room for other players. Here too some of them will down their shutters in the near future to come. Future Scenario: 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. 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. In the U.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. close down or merge with stronger players in three to four years. Page 15 .

For Example. most mutual funds concentrate only on financial funds like equity and debt. short – term and long-term U. 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.S. In the near future India too will concentrate on financial as well as physical funds. Page 16 . specific stocks on various bourses around the world.In India. SEBI is working out the norms for enabling the existing mutual fund schemes to trade in Derivatives. In developed countries like the U. In U.S.S.). apart from bullion funds there are copper funds. a conservative U.In the U.S. Permanent Portfolio Fund. the Canada based Dundee mutual fund is planning to launch gold and a real estate fund before the year-end. For instance.S. treasuries etc. Some like real estate funds and commodity funds also take an exposure to physical assets. Swiss francs. precious metal funds and real estate funds (investing in real estate and other related assets as well.A there are funds to satisfy everybody‘s requirement. The latter type of funds are preferred by Corporate‘s who want to hedge their exposure to the commodities they deal with.A. but in India only the tip of the iceberg has been explored. Importantly. many market players have called on the Regulator to initiate the process immediately. 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). based fund invests a fixed percentage of it‘s corpus in Gold. Silver. so that the mutual funds can implement the changes that are required to trade in Derivatives.

and (OEICs). and closed-end funds. open-ended funds. mutual fund is used as a generic term for various types of collective investment investment companies vehicles.S. UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs of every class of citizens. Dubai and Bahrain.com/) Mutual Fund.78. An open-end mutual fund does not have a set number of shares. short-term money market fund instruments. However. other securities. Similar funds also operate in Canada. as mutual funds. such as unit trusts.amfiindia. also known in the U. have and/or a fund manager that trades the pooled money on a regular basis.Assets Under Management: UTIAMC presently manages a corpus of over Rs. Since 1940. there have been three basic types of investment companies in the United States: open-end funds. 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. bonds. it may Page 17 . unit investment trusts (UITs). unitized insurance undertakings for collective investments in transferable securities (UCITS). A mutual fund may be either an open-end or a closed-end fund. (Source: http://www. All the mutual funds must get registered with SEBI. in the rest of the world.An Introduction Securities Exchange Board of India (SEBI) is the regulatory body for all the mutual funds. 617 Crores* as on 31st May 2010. It has a nationwide network consisting 143 UTI Financial Centres (UFCs) and UTI International offices in London. The net proceeds or losses are then typically distributed to the investors annually.

bond funds have had $39 billion in outflows. the first worldwide outflow recorded since the third quarter of 2002. The number of shares changes as investors buys or sell their shares. Net cash flow to all funds was negative in the third quarter with $218 billion in outflows. Investors are able to buy and sell their shares of the company at any time for a market price. Money market funds experienced net inflows of $28 billion in the third quarter. Investment Philosophy 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. It believes in having a Page 18 . All categories of long-term funds experienced outflows. after registering net inflows of $73 billion in the second quarter. On the other hand. Mutual Fund Global Overview Mutual fund assets worldwide decreased 12. However the openend market price is influenced greatly by the fund managers. Long-term funds had net outflows of $246 billion in the third quarter. equity funds have had $254 billion in outflows. compared with outflows of $70 billion in the second quarter of 2008.1 percent to $21. 83081 crore net inflow in FY 2009-10. closed-end mutual fund has a fixed number of shares and the value of the shares fluctuates with the market.S. dollars was exacerbated by strengthening of the dollar. the fund manager has less influence because the price of the underlining owned securities has greater influence. But with close-end funds.66 trillion at the end of the third quarter of 2008. Year-to-date money market funds have had $444 billion of net inflows. and balanced/mixed funds have had $24 billion in outflows.be considered as a fluid capital stock. The decline in assets reported in U. MFs records Rs. Year-to-date.

It is committed to adopt and maintain good fund management practices and a process based investment management. 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. professional fund management team. as is given to security selection while managing any fund. 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. a risk management department is also in operation. To ensure investors‘ interests. Corporate Profile: UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs of every class of citizens. UTI Mutual Fund follows an investment approach of giving as equal an importance to asset allocation and sartorial allocation. Dubai and Bahrain. 1 satellite office has also been opened. 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. Page 19 . It has a nationwide network consisting 114 UTI Financial Centers (UFCs) and UTI International offices in London.

 Professional Fund Management: Professionals having considerable expertise. However. experience and resources manage the pool of money collected by a mutual fund. They thoroughly analyse the markets and economy to pick good investment opportunities. A fund normally invests in companies across a wide range of industries.  Transparency: Mutual Funds regularly provide investors with information on the value of their investments. so the risk is diversified. Mutual Funds also provide complete portfolio disclosure of the investments made by various schemes and also the proportion invested in each asset type.  Choice: The large amount of Mutual Funds offer the investor a wide variety to choose from.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. Page 20 . thus increasing his or her risk. a mutual fund will spread its risk by investing a number of sound stocks or bonds.  Spreading Risk: An investor with limited funds might be able to invest in only one or two stocks/bonds. An investor can pick up a scheme depending upon his risk/ return profile.

at the time of buying. the concentrated buying or selling often results in adverse price movements i. most debt funds do not face this . the fund ends up paying a higher price and while selling it realizes a lower price. this problem is even more severe for funds investing in small capitalization stocks. Systematic Withdrawal Plans (SWP) and dividend reinvestment plans.  Return Potential: Over a medium to long term. Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities. given the large size of the debt market. excluding UTI.e. Limitation of Mutual Fund:  Entry and exit costs: Mutual Funds are a victim of their own success. You achieve this diversification through a Mutual Fund with far less money than you can do on your own.  Flexibility: Through features such as Systematic Investment Plans (SIP). When a large body like a fund invests in shares. you can systematically invest or withdraw funds according to your needs and convenience. problem. For obvious reasons. Page 21 However. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion.  Diversification: Mutual Funds invest in a number of companies across a broad cross section of industries and sectors. 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.

the Fund manager under performs the benchmark index by an equal amount. may be a time lag before investment opportunities are identified. whether the fund constantly receives fresh subscriptions and redemption. A standard 2% expense ratio means that. there is dome money waiting to be invested. This includes marketing and initial costs deducted at the time of entry itself.  Cost of churning: The portfolio of a fund does not remain constant. Page 22 . It is also dependent on the volatility of the fund size i. called ―load‖. while the later is. Since it is difficult to invest all funds in one day. 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.e. the former is not counted while measuring performance. The extent to which the portfolio changes is a function of the style of the individual fund manager. custody fees. there For open- Fund to invest money. everything else being equal. together called the expense ratio. ended funds. Then there is the annual asset management fee and expenses.  Fund management costs: The costs of the fund management process are deducted from the fund. there is the added problem of perpetually keeping some money in liquid assets to meet redemption. and commensurately. that lowers the Such portfolio portfolio return changes have associated costs of brokerage. Usually. registration fees etc. Waiting time before investment: It takes time for a Mutual Further.

investment objectives. financial position and general affairs of the scheme.  Wind up the schemes.  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 Page 23 . Change of index composition: The indices keep changing over There is an the world to reflect changing market conditions. 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. Rights of Unit holders: As a unitholder in a Mutual Fund scheme coming under the SEBI (Mutual Funds) Regulations. inherent survivorship bias in this process. with the bad stocks weeded out and replaced by emerging blue chips. 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. with each change being quite substantial.  Vote in accordance with the Regulations to:  Change the Asset Management Company.   Receive information about the investment policies. 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. Another reasons for change index composition is Mergers & Acquisitions.

you can expect the following from Mutual Funds:  To publish their NAV. in case of closeended schemes.  In addition many mutual funds send out newsletters periodically. Page 24 . in accordance with the regulations: daily. in case of open-ended schemes and once a week.and to have option to exit at prevailing Net Asset Value without any exit load in such cases. unaudited financial results half yearly and audited annual accounts once a year. To adhere to a Code of Ethics which require that investment decisions are taken in the best interest of the unitholders.  Inspect the documents of the Mutual Funds specified in the scheme‘s offer document. In addition to your rights.  To disclose your schemes‘ entire portfolio twice a year.

subsidiary. 50 per cent of the trustees shall be independent trustees (who are not associated with an associate. The fund then invites investors to contribute their money in the common pool. a mutual fund is just a ‗pass through‘ vehicle. A mutual fund in India is constituted in the form of a public Trust created under the Indian Trusts Act. Thus. who are the beneficiaries of the Trust. The trust is established by a sponsor or more than one sponsor who is like a promoter of a company. which has sponsor. contributing to its initial capital and appoints a trustee to hold the assets of the Trust for the benefit of the unit – holders. 1882. At least. which is an independent body and acts as protector of the unit – holders interests. Asset Management Company (AMC) and a custodian. The sponsor forms the Trust and registers it with SEBI. Most of the funds in India are managed by the Board of Trustees.Organizational Structure of Mutual Fund Industry: Unit Holders Sponsors Trustees Mutual Fund AMC Transfer Agent Custodian SEBI Mutual fund is set up in the form of a trust. or sponsor in any manner). by subscribing to ‗units‘ issued by various schemes established by the Trust as evidence of their beneficial interest in the fund. trustees. The fund sponsor acts as the settler of the Trust. Page 25 . The trustees shall be accountable for and be the custodian of funds/property of respective scheme.

The sponsor is required. under the provisions of the Mutual Fund Regulations. holds the securities of various schemes of the fund in its custody. The trustees are vested with the general power of superintendence and direction over AMC.The trustees of the mutual fund hold its property for the benefit of the unit-holders. 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. a reputation of fairness and integrity in all his business transactions. However. The AMC. They monitor the performance and compliance of SEBI Regulations by the mutual fund. approved by SEBI. not be convicted of an offence involving moral turpitude or should have not been found guilty of any economic offence. The custodian. Page 26 . manages the funds by making investments in various types of securities. The sponsor or any of its directors or the principal officer employed by the mutual fund should not be guilty of fraud. the sponsor should contribute at least 40% to the net worth of the AMC. who is registered with SEBI. to have a sound track record. Additionally.

Four ICRA 7 Star Gold Award. CRISIL-CNBC-TV18-Mutual Fund of the year Award 2007. Golden Peacock Innovative Product/Service Award-2008. ICRA Mutual Fund Award 2007. Loyalty Awards – 2009. Lipper Fund Awards . CNBC-TV18-BNP Par-ibas Mutual Fund of the year Award 2006.Income. Four ICRA 5 Star Award. ICRA Mutual Fund Award 2006. Top Performing Infrastructure Fund .Awards UTI MF CNBC Award 2009. Lipper Fund Awards09-UTI Mahila Unit-5 yrs. CNBC-TV18-BNP Par-ibas Mutual Fund of the year Award 2004 ICRA online Mutual Fund Award: UTI NIFTY INDEX FUND won the award Page 27 .Gulf 2008. Lipper Fund Awards. Lipper Fund Awards 2007. Lipper Fund Awards09-UTI Mahila Unit-3 yrs. Brand loyalty Awards 2008. UTI Mutual Fund sweeps ICRA mutual fund Award 2009. Reader‘s Digest Trusted Brand 2008. UTI MF wins the Best Debt Fund House Award.

This is referred to as the dividend reinvestment plan. Page 28 . 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. Under the dividend plan. 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. CNBC India Mutual Fund of the Year Award 2003. The different investment plans are an important consideration in the investment decision. UTI Growth Value Fund has been ranked by CRISIL 2004. Dividend Reinvestment Plan Dividend plans of schemes carry an additional option for reinvestment of income distribution. if any. This plan is ideal to those investors requiring regular income. The investor thus only realizes capital appreciation on the investment. income is distributed from time to time.for the year 2004. UTI Dynamic Equity Fund wins Silver at ICRA Online 2005. because they determine the flexibility available to the investor. UTI Nifty Index Fund wins Gold at ICRA Online 2005. are made.

Investors can buy or sell units at NAV-related prices from and to the mutual fund on any business day. dividends declared by a fund are reinvested in the scheme on behalf of the investor. Open-ended schemes are preferred for their liquidity. thus increasing the number of units held by the investors. unit capital of open-ended funds can fluctuate on a daily basis. there is no cap on the amount investors can buy from the fund and the unit capital can keep growing. Hence. an open-ended fund allows one to enter the fund at any time and even to invest at regular intervals. This provides ready liquidity to the investors and avoids reliance on transfer deeds. These schemes have unlimited capitalization. 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. Any time entry option. openended schemes do not have a fixed maturity. The advantages of open-ended funds over close-ended are as follows: Any time exit option. the issuing company directly takes the responsibility of providing an entry and an exit. different types of Mutual Fund schemes have evolved. Page 29 . These funds are not generally listed on any exchange. Based on these objectives. Open Ended Schemes: Open-ended schemes do not have a fixed maturity period. Such funds can issue and redeem units any time during the life of a scheme.Under this plan.

After that such scheme cannot issue new units except in case of bonus or rights issue.Close Ended Schemes: Close-ended schemes have fixed maturity periods. Portfolio Classification: Income/ Debt Funds These funds are low risk-low return funds. investors‘ expectations and other market factors. where in the investments are made in income bearing instruments such as bonds. investors can buy or sell units of the scheme on the stock exchanges where they are listed. Alliance Liquid Fund etc. The share prices of these funds tend to be more stable in value and are best suitable for regular income investment goals. debentures. after the initial issue. JM Income. provided minimum investment period is more than one year. government securities. They are open for sale or redemption during predetermined intervals at NAV-related prices. Growth/Equity Funds Page 30 . However. commercial papers etc. Investors can buy into these funds during the period when these funds are open in the initial issue. The market price of the units could vary from the NAV of the scheme due to demand and supply factors. Interval Scheme: Interval Scheme combines the features of open-ended and close-ended schemes. The leading examples are monthly income funds of UTI. Prudential ICICI Income Plan.

These funds are high risk-high return funds. Page 31 . The leading examples of such funds are. and IDBIPRINCIPAL Child Benefit Fund etc. Birla Sun Life Fund. They have emerged as an alternative for savings and short-term fixed deposit accounts. equity shares and income bearing instruments. but the potential to earn in such funds is higher provided they are invested with long-term (more than 5 years) financial goals. The examples are PRUICICI Balanced Fund. 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. while providing some upside for capital appreciation. Money Market Mutual Funds These funds invest in highly liquid instruments such as certificate of deposits and short-term bonds. where time-span is least. The idea is to reduce volatility of fund. Balanced Funds These funds invest in both. The NAV of such funds keep fluctuating. it is a combination of income and growth funds more return – more risk than income funds and less return – less risk than growth funds. etc. IDBI-PRINCIPAL Balanced Fund. They are best suited for capital preservation investment objectives. wherein major chunk of investment goes in equity shares of companies. Kothari Pioneer Prima Fund. Prudential ICICI Equity Fund. In all.

Tax Saving Funds (ELSS) These funds offer tax rebate to the investor along wit capital growth and steady returns. They can invest only in the securities which are issued and traded in the domestic financial markets. The investment can be made any time. pharmaceuticals.Geographical Classification Domestic Funds Funds which mobilize resources from a particular geographical locality like a country or region are domestic funds. but it gets lock-in for a period of 3 years and in return tax Page 32 . An Equity United Savings Scheme is available wherein investments are made primarily in stocks. FMCGs etc. Also with the new rule of government not allowing investing more than 10% in a particular company. 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. It is best suited to people willing to take high risk. OTHER CLASSIFICATION Sector Funds Sector funds primarily invest in companies of a particular sector/ industry such as information technology. 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. The market is limited and confined to the boundaries of a nation in which the fund operates.

1. which carry no risk of nonpayment of interest as the RBI manages the payment of interest and principal on the instruments. It is best suited to the investors who are satisfied with the returns of an Page 33 . The returns in case of such funds depend on the index‘s performance.000. IDBI-PRINCIPAL Government Securities Fund etc. The time-span matters a lot as there are chances of price volatility. Making their fund oriented towards the need of the group they are targeting. Another such scheme is pension scheme. wherein tax rebate @ 20% can be obtained for investment up to Rs. which may lead to possibility of loss of principal invested. women. such as children. 00. index.rebate @ 20% is obtained if investments exceed Rs. 000. Special Funds Special purpose funds are those funds that target a specific customer segments. Index Funds Index funds invest only in stocks of a particular index such as BSE. if invested for short-term. These funds are best suited to the regular income and long-term investment objectives. retired people etc.60. The principle is to duplicate performance of these widely followed indexes while keeping trading and other costs to a minimum. S&P CNX 500 etc. Examples are PRUICICI Gilt Fund. Gilt Funds These funds are sort of government funds wherein the investments are made in debt instruments of the government.

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.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. convertible debentures. UTI Master Plus Unit Scheme: Capital appreciation through investments in equities and equity related instruments. 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. The objective of the scheme is to achieve long term investing predominantly in a diversified portfolio of equity related  Speciality/ Theme Based Fund Page 34 . derivate in India and also in overseas markets. UTI Wealth Builder: instruments. UTI Contra Fund: To provide long term capital appreciation/ dividend distribution through investments in listed equities & 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.

training. 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. The focus of Page 35 .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. which offer high dividend yield. It aims to provide medium to long term capital gains and/or dividend distribution by investing predominantly in equity and equity related instruments. UTI Services Industries Fund: An open-ended fund which invests in the equities of the services sector companies of the country. finance. engineering etc. oil and gas. entertainment etc. education. The fund will invest in the stocks of the companies which from part of infrastructure industries. Building materials. 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. UTI MNC Fund: The investments of funds under the scheme will be predominantly in stocks of multinational corporations and other Liquid stocks. travel. 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. insurances. power. chemicals. UTI Dividend Yield Fund: An open-ended equity scheme. 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. UTI Mid Cap Fund: An open ended fund with the objective to provide ‗Capital Appreciation‘ by investing primarily in mid cap stocks. telecom.

UTI Pharma and Health Care Fund: An open-ended fund which exclusively invest in the equities of the Pharma and Healthcare sector 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.(a) Petro sector. Page 36 . (d) Companies which makes parts for energy generation. (e) Consulting and Finance Companies. 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.  Sector Funds: These funds invest primarily in equity shares of companies in a particular business sector or industry. (b) Power Generation Companies. 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. UTI Wealth Builder Fund Ser. UTI Energy Fund: Investment will be made in stocks of these companies engaged in the following areas: . These funds are targeted at investors who are bullish or fancy the prospects of a particular sector. (c) Energy Storage Companies.

before expenses. closely track the performance and yield of basket of securities underlying S&P CNX Nifty Index. 2. The money collected from the investors is invested only in the stocks. 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 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. derivatives and the balance portion in debt securities. 3. UTI Sunder: Investment objective of the fund is to endeavour to provide returns that. It aims at enabling members to avail tax rebate under section 80C of the IT act and provide them with the benefit of growth. which represent the index. Index Fund Category: These funds invest in the same pattern as popular market indices like S&P CNX Nifty or CNX Midcap 200. Tax Planning Funds UTI Equity Tax Saving Plan: An open ended fund investing a minimum of 80% in equity and related instruments. Asset Fund Category Page 37 . 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.

UTI CRTS: Investment objectives of the scheme are the primarily provide regular income to unit holders of the scheme.UTI Variable Investment Scheme: This is an open-ended scheme aiming to make dividend distribution periodically. The scheme will. as part of the investment objective take a contrarian outlook on the equities. They provide a steady return and reduce the volatility of the fund while providing some upside for capital appreciation. 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. 4. UTI Retirement Benefit Pension Plan: Investment objective and policies of the scheme are primarily to provide pension in the form of Page 38 . 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. 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. They are ideal for medium to long-term investors who are willing to take moderate risks. Balanced Fund Category: These funds invest both in equity shares and fixed-income-bearing instruments (debt) in some proportion. UTI Children Career Balanced Plan: Funds collected under the plan will be invested in equities. convertible and nonconvertible debentures/ bonds of companies/ corporates etc.

UTI Monthly Income Scheme: An open-ended debt oriented scheme with no assured returns. 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.0% to maximum 30%* investment in securitized debt will not normally exceed 20% of the net assets of the scheme. The scheme aims at distributing income. UTI CCP Advantage Fund: Equity and related instruments minimum70% to 100%. debentures. They are best suited for the medium to long-term investors who are averse to risk and seek capital preservation. debt and money market instruments including securitized debt* minimum.periodical income / cash flow to the unit holders to the extent of redemption value of their holding after they complete 58 years of age. UTI Bond Fund: The scheme will retain the flexibility to invest in the entire range of debt and money market instruments. if any. 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. periodically. government securities. commercial paper and other money market instruments. Income Fund Category: These funds invest predominantly in high-rated fixed-income-bearing instruments like bonds. They provide a regular income to the investor. 5. The flexibility is being retained to adjust the portfolio in response to a change in the risk Page 39 .

Liquid Fund Category: These funds invest in highly liquid money market instruments. with a view to maintain risks within manageable risks limits. They provide easy liquidity. fixed rate debt/ money market instrument swapped for floating rate returns. treasury bills. UTI G-Sec Investment Plan.STP: The investment objective of the scheme is to generate credit risk. money market instruments and structured obligations. The period of investment could be as short as a day. treasury bills. call money and repos.to return equation for asset classes under investment. 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 Short Term Income Fund: To Generate Steady and Reasonable income. 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.free return by way of income or growth by investing in central Government securities. 6. They have emerged as an alternative for savings and short-term fixed deposit accounts with Page 40 . 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 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. call money and repos.

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. Page 41 . UTI Liquid Fund Cash Plan: The investment objective of the scheme is to generate steady and reasonable income. 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.comparatively higher returns. These funds are ideal for corporate.

SIP (Systematic Investment Plan): SIP is an investment program that allows you to contribute a fixed amount (as low as Rs. With SIP you don‘t require investing a huge sum of money and start with an amount as little as Rs.1000) in mutual funds at regular intervals. You can also give monthly/quarterly post-dated cheques for the amount you wish to invest. Just identify the amount and scheme you wish to invest in and then choose from options like Auto Debit/ECS. Page 42 . Build your future: To meet largest expenses of your life like marriages. Reduce risk: For efficient participation in this highly volatile market. Enjoy the ease: Set yourself free from cumbersome paperwork. Save a small amount every month/quarter and look forward to a bright future. 500. It reduces risk associated with lump sum investments. The amount will automatically get debited on a date of your choice. education or a house you need to start investing early. You can SIP helps you average out your cost by generating superior returns in the long run. Relax and accumulate wealth: accumulate wealth over long-term.

47% 14140 34.88% 49079 21.92% UTI Master Value Fund UTI Fund Page 43 .85% 16534 76.46% 53049 26.75% Investment Amount 12000 3 yr 36000 5 yr 60000 51520 24.88% 82462 12.39% 16638 78.SIP Returns of two months:  SIP return for April: 1 yr.21% 45332 15.52% 15168 52.70% 52034 25.56% 43300 12.52% 89318 15.73% 54361 28.96% 15328 55.30% 14769 45. 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 42.68% 97546 19.37% 93720 17.

Page 44 .35% 15436 57.45% 88421 15.54% 46395 17.20% 42673 11.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 40.75% Sector Fund UTI Transportation & Logistics Fund SIP returns are worked out assuming investment of Rs.03% 16556 77.82% 108710 24.10% 58119 33.20% 53929 28.73% 93414 17. The loads have not been taken into account.73% 51582 24.51% 15596 60.every month at NAV per unit of the scheme as on the first working day of the respective time periods.00% 93374 17.36% 13950 31.37% 90491 16. 1000/.

65% 12000 3 yr 36000 5 yr 60000 51423 24.12% 43011 11.72% 16213 71.75% 15895 65.90% 53754 27.24% 101637 21.30% 14554 42.81% 46317 17.15% 13441 23.96% 14728 45.51% 83578 13. 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 31.45% 89165 15.07% 48769 20. SIP returns for May: 1 yr.14% UTI Master Value Fund Page 45 .93% 53133 27.25% 13764 28.18% 14039 33.25% 91975 17.87% 92815 17.66% 56670 31.94% 45881 16.

74% 42070 10.23% UTI Transportation & Logistics Fund SIP returns are worked out assuming investment of Rs. The loads have not been taken into account.88% 15834 64.81% 52325 25.73% 94456 18. 1000/.every month at NAV per unit of the scheme as on the first working day of the respective time periods.69% 59642 35.94% 112542 25.63% 55771 30.42% 86217 14.50% Sectoral Fund UTI Banking Sector Fund Investment Value Yield (%) Investment Value Yield (%) Investment UTI MNC Fund Value Yield (%) 15222 53.49% 95606 18.84% 148981 49.UTI Infrastructure Fund Investment Value Yield (%) 13230 19. (Reference: From the Factsheet by UTI) Page 46 .

NAV per unit is simply the net value of assets divided by the number of units outstanding. Page 47 . 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. Re-purchase Price: Is the price at which units under open-ended schemes are repurchased by the Mutual Fund. Exit/Entry load: Is a charge collected by a scheme when it sells the units is exit load. It may include a sales load. Sales Price: Is the price you pay when you invest in a scheme. also called Offer Price. The NAV of a mutual fund are required to be published in newspapers. 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. 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. Buying and selling into funds is done on the basis of NAV-related prices.

ended It aims provide term gains dividend distribution investing predominantly in equity equity which high yield. 5000/Rs. due to time constraints we have only focused on following schemes.Area of Study: There are so many schemes were introduced by UTI AMC. dividend instruments. Asset allocation Equity Minimum 70% and Debt maximum 30% Min. The fund aims to provide long term capital appreciation/ dividend predominantly in equity and equity related instruments of top 100 by market capitalisation. Equity Funds Category Features Objective Master Share An equity fund aiming to provide benefit of capital appreciation and income distribution through investing in equity. Page 48 . Top 100 Fund Dividend Yield Fund An open-ended An equity scheme. 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. 5000/Rs. invest Rs.

275 Yes 804 Yes 1.09% 1.63% Yes 2.33% 2. of Opportunity Fund Wealth Builder Fund Ser. The seeks generate capital appreciation distribution investing funds equity and related instruments. 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. 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.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 Page 49 .81% 2.

5000/Within year 1% after that Nil Dividend Growth Page 50 . invest Amt. 5000/Rs. Asset allocation Equity Minimum 90% and Debt maximum 10% Min. to capitalise on opportunities arising market responding changing Indian economy moving investments amongst different sectors prevailing trends change. 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. the dynamically 90% Equity Rs. 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.The focus of Market and financial the scheme is Instruments.

SIP SWP Trigger Fund Size (Rs. In Cr) Expense Ratio

Yes

Yes

Yes

Yes

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

money market

Page 51

30%* investment in securitized debt not normally exceed net of scheme.

condition (1) than non 60%

that less of

holding 58 age.

after of

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

equities related

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

Page 52

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

premature withdrawal

3% >= 1yr & < 3yr 1% >= 3yr & < 5yr

10yr Plan/ 15yr Plan Yes Yes Yes

2,729.53 1.64%

2,915.45 1.65%

610.39 1.47%

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

a rate

money

debt/

Page 53

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

Page 54

000/Nil Income Growth and CP short term money market securities and high quality 100% debt and money market Rs. 1.92 0.00. Asset allocation Min.20% 1.95 portfolio of portfolio of money market debt. Equity Minimum 65% and Debt maximum 35% Cash PlanRs. In Cr) Expense Ratio 0. Exit Load Plans/Options SIP SWP Trigger Fund Size (Rs.716.diversified securities.26% Page 55 . 10000/Nil Dividend Growth 5.270. invest Amt.

but also expanding their operations to understand their consumer‘s demographic profile. Consumer is always right. Almost all major companies. consumer buying process and shopping perception is very much helpful to formulate a firm’s marketing strategy. ―Consumer Buying perception refers to the perception of ultimate user of the product‖.An Introduction Consumer is God. the market used to be small and limited to a few manufacturers and consumers. consuming. “The decision processes and acts of final household consumers associated with evaluating. just not only selling product or services.Consumer Buying perception. buying perception and preferences in order to build long-lasting relationship. “ Page 56 . consumer motivation. and discarding products for personal consumption. According to Phillip Kotler. The free market has led to cutthroat competition among the manufacturers who are trying to capture as much market share as possible. 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. sellers as well as buyers increased several folds. consumer preferences. buying.” “An analysis of the consumer’s perception in terms of consumer consumption patterns. banking. whether in telecommunication. Earlier. but as it expanded beyond geographical boundaries. have realized the importance of consumer and are therefore trying to retain their loyalty. Organizations are now. finance or IT. credit card.

Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome. family.g. media).g. For example.. therefore need to analyse the what. products). The perception of consumers while shopping or making other marketing decisions. and  How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. signs. How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer. where.Objectives of studying Consumer Buying perception:   Buyers‘ reactions to a firms marketing strategy has a great impact on the firms‘ success. feel. brands. The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how      The psychology of how consumers think.. by understanding that a Page 57 . when and how consumers buy. and select between different alternatives (e. reason. The psychology of how the consumer is influenced by his or her environment (e. culture. Understanding these issues helps us adapt our strategies by taking the consumer into consideration. The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers.  Marketers can better predict how consumers will respond to marketing strategies.

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. The marketing concept is consumer oriented and the emphasis is more on the consumer rather than on the product. professional needs. The essence of modern marketing lies in building of profit along with creating meaningful value satisfaction for the costumers. whose needs and desires have to be coordinated with the set of products and production programmes. 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. Consumer perception is affected by a host of variables ranging from personal. but at other times will be persuaded more by emotional or symbolic appeals. personality characteristics. Thus the marketing concept is consumer oriented and the emphasis is more on the consumer rather than on the product. attitudes and values. By understanding the consumer. we will be able to make a more informed decision as to which strategy to employ. We also learn that consumers will sometimes be persuaded more by logical arguments. advertisements must usually be repeated extensively.number of different messages compete for our potential customers‘ attention. All the business activities should be carried out in ways which are directed towards the satisfaction of the consumer needs. Page 58 . 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. we learn that to be effective. Therefore. Therefore. marketing success an enterprise depends as its ability to create a community of satisfied consumers.

Page 59 . influence the their learning process personality characteristics are the similarities. The combination of these factors help the consumer in decision making further Psychological factors that as individual operate consumer across the needs. perceptions and attitudes. when and how consumers buy. his likes dislikes. which different types of people perception. The marketing concept stresses that a firm should create a Marketing Mix (MM) that satisfies (gives utility to) customers. and society as a whole. colleagues. therefore need to analyze the what. Satisfaction of the consumers becomes the most important goal of a business enterprise. A firm needs to analyze buying perception for:   Buyers‘ reactions to a firms marketing strategy has a great impact on the firms‘ success. age. Marketing starts with the consumers and ends with the consumer. his expectations and motivation. Buying perception is the decision processes and acts of people involved in buying and using products. motivations. friends. The effort to ensure consumer satisfaction lies in understanding the consumer. where. Marketers can better predict how consumers will respond to marketing strategies. professional status to social influences of various kinds exerted a family. gender.social economic and cultural background. Consumer Buying perception refers to the buying perception of the ultimate consumer.

Page 60 . Gold and Life Insurance. Mutual Fund.The Investor Prospective Towards Various Assets ASSET Investment Objective Risk Tolerance High Investment Horizon Long Equity Capital Appreciation Mutual Fund Capital Appreciation Moderate Long Bank Deposit Income Flexible Generally Low Flexible all Terms PPF Income Low Long Gold Inflation Hedge Low Long Life Insurance Risk Cover Low Long This table shows investors prospective towards Assets like Equity. From this table it is clearly understand the Investment objective. Risk tolerance & Time horizon for different Asset Classes. PPF. Bank Deposit.

 It aims at generating new ideas. It includes introduction of the study.  It helps in assessing the feasibility of further study. It is a way of finding new ways of looking a familiar thing in order to explore ways of changing it.  An analysis of insight stimulating cases Advantage:  It does not have formal or rigid design. objectives.RESEARCH METHODOLOGY Research is a systematic activity carried out in the pursuit of truth. Limitations:  It is a pilot studies thus usually an ill structured. Over here researcher has applied exploratory research which will take into consideration the following points. corrects and verifies knowledge.  A review of pertinent literature. benefits & limitations of the project. which is a purposive investigation. It is an activity that extends. Page 61 .  It is not specific in nature.  It attempts to see what is there rather than predicting the same.  An experience survey.

METHODOLOGY. To know the investors knowledge and perceptions about mutual fund. liquidity. returns.  Various investment options have been selected like Mutual Fund.  Various parameters taken for comparison Page 62 . Gold. Bank Deposits. Secondary Objectives:    To know people‘s awareness about various schemes for investment in Mutual Fund. tax benefits and maturity etc. To know the investor priority level between different criteria of investment like safety level. To measure the satisfaction level of investors regarding various parameters for investment in Mutual fund. To identify the social factors that affect investors‘ buying perception in Ahmedabad.Research Objectives: Primary Objective:  To know the Consumer perception of investors towards Mutual Funds. Post Office Savings and Insurance.     Find out reason for choice of mutual fund as an investment avenue. Find out reason for choice of mutual fund as an investment avenue.The science dealing with principles of procedure in research and study. of investment.

This survey included face-to-face interview with respondents. Sampling Plan Target population: Investor who invests money into various investment options. Page 63 . Research Approach: Survey method was adopted to gather the primary data. questionnaire was prepared to study the investors‘ perception. Sampling Element: High Net worth Investors (HNI) and middle class retail investors. Primary data were collected directly from the respondents to solve the problem.  Secondary Data: Secondary data were collected from many sources like books. Risks  Time Horizon  Return on Investment  Liquidity Type of Data  Primary Data: Utilizing the information from the Secondary data. websites and company‘s report.

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. 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 Page 64 . Quantitative Sampling.

sample errors are inevitable.40 years 41 years .  As the samples are taken randomly and population size of Ahmedabad is large.  The study will heavily depend on primary data which will be collected from public at large.Data Analysis and Interpretation: Data analysis will be done through graphical method and using SPSS software and Chi square test. where questionnaire will be analyzed and various test will be performed on it to reach to the final conclusion. hence the authenticity of data can be a limitation.30 years 31 years .  Company uses various software‘s which have certain financial information and I as a trainee cannot access them. Age Group: Frequency 18 years . 1.50 years Above 50 years 9 30 9 12 Per cent 15 50 15 20 Page 65 . Limitations:  As we limited time span so it is not possible to cover each & every detail of the topic. Result will be given on the basis of the descriptive statistical technique.

50 50 40 30 20 9 10 0 18 years . From the above chart.40 years 41 years . it can be derived that most of the investors are in the age group of 31 to 40.50 years Above 50 years 15 9 15 12 Frequency Per cent 30 20 From the questionnaire we got different age groups. 2.30 years 31 years . This would help us to know to whom we have to target. they have enough money to invest in risky market because they have job and they are well settled. Business or Job/service Frequency Business Job 6 54 Per cent 10 90 Page 66 . The reason being.

100 80 60 40 20 0 Business 6 10 54 90 Frequency Per cent Job Most of the people. Through this we come to know that we should target on investor who is in job. 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 65 39 25 6 10 15 Frequency Per Cent Up to 2 lac 2 lac to 5 lac Above 5 lac Page 67 . 3. who are interested in investment.

most of the investors belong to income group of 2 lac to 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 Page 68 .As per income status. 4. From this we come to know that investors belong to income group 2 lac to 5 lac invests more than above 5 lac.

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. Than after money market instrument and equity share are 5. investment avenue for the investors. Most of the investors like to invest in share market. about 40% investor invest in share market.6 trillion US at the beginning of October 2009. That‘s reason why more people invest in stock market. As per above chart. The size of the world stock market was estimated at about $36. who can be based anywhere. Are you regular investor? Frequency Yes No 42 18 Per cent 70 30 80 60 40 20 0 42 70 30 18 Frequency Per cent Yes No Page 69 .

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. 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 55 Frequency Per cent No 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. We concluded from the data that about 70% people we met are regular investor and only 30% investors invest occasionally. criteria‘s for the investors while investing in mutual fund. 6. Than after fund performance and tax incentive are Page 70 . 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.

The major challenge is that how we can convert their investments from other money market instruments towards mutual fund. 8. Would you like to have information on Mutual Fund? Page 71 . 7.From the surveys which we have done. 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.

Than after return potential and advantage of professional management are important while investing in mutual fund. there are 40% people are not aware about mutual fund and 60% are aware of the mutual fund. 9. From the survey. What do you consider during making any investment? Frequency Transparency 27 Page 72 . 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. From that 40% people only 8% want to have full information.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.

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. This helps us to know that to what scheme does investor is looking for.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 Frequency 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. Page 73 .

Our Key findings are as follows:           69 % people are aware of the mutual fund. Now a day‘s investors want to invest their money for long term prospective to reach their financial goal and maximizing wealth. 66% people have income level of Rs. Tax benefit and safety of the investment are most important objective of the investors. Yield and return is the most important preference at the time of investment. 50.10000/In this current scenario Mutual Funds & Bank deposits become the most preferred investment option. Income fund & specialized fund are most important for the investing in mutual fund. 48% have shown interest to invest in mutual fund. It help to know about the preferences of investors it give them knowledge about the different investment options available for investment. Convenience and risk are most important criteria considered by the investor while investing their money.Rs.000.Key Findings This training program has played a significant role in understanding the Consumer perception. Age group & Income is the most important factor in determining the risk capacity of individual Page 74 .

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. investors are looking for an alternative for their small time investments which will provide them a higher return and also safety to their investments. The small investors purchase perception does not have a high level of coherence due to the influence of different purchase factors. The bond market is also passing through a recession due to its interest parity with bank instruments. 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.Concluding Observation: The present study looks at customer expectation levels in a mutual fund product. Page 75 . 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.

so there is huge market available for new and young investor. Risk Reduction.Learning:     Convenience & risk are most important criteria considered by the investor while investing their money.  Age group & Income is the most important factor in determining the risk capacity of individual Recommendations:  Most of the investors belong to age category of 30 to 40. Transparency and Low Transaction Cost. Flexibility. especially for the new comer. About 70% of investors are regular investors. but many people are still unaware about various schemes of mutual fund. increasing awareness is also very important thing. the concept is widely known. Bonds. Investors are concerned about the returns.  As Mutual Fund provides more returns than PPF. Mutual Fund. Post. MF is good investment tool because of several benefits like Professional Management. Tax benefit and safety of the investment are most important objective of the investors. so there is need to catch that market as well. Fixed Deposit. Fresher are not able to make huge investment at once so there should be one scheme.    Income group of 2 lac to 5 lac is making more investment than others. and Equity in Long Term so more investors are diverted towards it. so there is scope and market for mutual fund in this market. Page 76 .

com PDF’s:  Mutual Fund Investors Guide  Trainer Note AMFI Books:   Fact sheet of UTI mutual fund Understanding Mutual Fund. References Websites:      www. There is a need to introduce very aggressive scheme which can give maximum returns to investor as they are more concern about return.about.com www.utiamc.mutualfundindia.com www.Sunita Abraham & Uma Shashikant Page 77 .mutualfunds.utimf.amfiindia.com www. transparency and regular income than risk and liquidity.com www.

Want to invest in Mutual Fund in Future Yes No 7. Business 2. If not.:__________________ Designation:__________________ Professional Details: 1.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.Questionnaire. If in Mutual Fund than in which scheme _________________________________________________________ ___________________________________________________________ 6. Where do you invest? Bank Deposit Mutual Fund Others_____________________________________ 4. What do you do for saving your Tax? Page 78 Share Market 2 lac to 5 lac Above 5 lac Job/Service . Annual Income: Up to 2 lac 3.) Personal Details: Name: ____________________________________________Age:__________ Address:_________________________________________________________ E-Mail: ______________________________Contact No.

Are you aware about all the features of Mutual Fund? Yes Yes Transparency Tax Saving No No Liquidity Regular Income Returns Risk 9. Would you like to have information on Mutual Fund? 10.What do you consider during making any investment? Signature Thank You… Page 79 .___________________________________________________________ ___________________________________________________________ 8.

Sign up to vote on this title
UsefulNot useful