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1 INDUSTRY PROFILE An Overview The mutual fund industry in India began with the setting up of the Unit Trust In India (UTI) in 1964 by the Government of India. During the last 36 years, UTI has grown to be a dominant player in the industry with assets of over Rs. 76,547 Crores as of March 31, 2000. The UTI is governed by a special legislation, the Unit Trust of India Act, 1963. In 1987 public sector banks and insurance companies were permitted to set up mutual funds and accordingly since 1987, 6 public sector banks have set up mutual funds. Also the two Insurance companies LIC and GIC established mutual funds. Securities Exchange Board of India (SEBI) formulated the Mutual Fund (Regulation) 1993, which for the first time established a comprehensive regulatory framework for the mutual fund industry. Since then several mutual funds have been set up by the private and joint sectors. Growth of Mutual Funds The Indian Mutual fund has passed through three phases. The first phase was between 1964 and 1987 and the only player was the Unit Trust of India, which had a total asset of Rs. 6,700/crores at the end of 1988. The second phase is between 1987 and 1993 during which period 8 funds were established (6 by banks and one each by LIC and GIC). The total assets under management had grown to Rs. 61,028/- crores at the end of 1994 and the number of schemes were 167. The third phase began with the entry of private and foreign sectors in the Mutual fund industry in 1993. Kothari Pioneer Mutual fund was the first fund to be established by the private sector in association with a foreign fund. As at the end of financial year 2000 (31st March) 32 funds were functioning with Rs. 1, 1 3,005 crores as total assets under management. As on August end 2000, there were 33 funds with 391 schemes and assets under management with Rs. 1,02,849 crores.

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The Securities and Exchange Board of India (SEBI) came out with comprehensive regulation in 1993 which defined the structure of Mutual Fund and Asset Management Companies for the first time. Several private sectors Mutual Funds were launched in 1993 and 1994. The share of the private players has risen rapidly since then. Currently there are 34 Mutual Fund organizations in India managing over Rs. 1,02,000/- crores. A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund: ADVANTAGES OF MUTUAL FUNDS The advantages of investing in a Mutual Fund are: Professional Management Diversification Convenient Administration Return Potential Low Costs Liquidity Transparency Flexibility Choice of schemes Tax benefits Well regulated

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TYPES OF MUTUAL FUND SCHEMES Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. The figure below gives an overview into the existing types of schemes in the Industry. TYPES OF MUTUAL FUND SCHEMES BY STRUCTURE Open- ended Schemes Close-ended Schemes Interval Schemes

BY INVESTMENT OBJECTIVE Growth Schemes Income Schemes Balanced Schemes Money Market Schemes OTHERSCHEMES o o Tax Saving Schemes Special Schemes Index Schemes Sector Specific Schemes FREQUENTLY USED TERMS Net Asset Value (NAV) Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per Unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date. Sale price Is the price you pay when you invest in a scheme? Also called Offer Price. It may aide a sale Load.

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Repurchase Price Is the price at which a close-ended scheme repurchases its units and it may include a back-end load. This is also called Bid Price. Redemption Price Is the price at which open-ended schemes repurchase their units and close ended schemes Redeem their units on maturity. Such prices are NAV related. Sales Load Is a charge collected by a scheme when it sells the units? Also called, 'Front-end' load. Schemes that do not charge a load are called 'No Load' schemes.

Repurchase or 'Back-end' Load</FONT Is a charge collected by a scheme when it buys back the units from the unit holders? The AMFI Test Programme: Objective Mutual funds are emerging as an important financial intermediary for the investing Public in India. Conceptually and operationally they are different. The investors need to understand the working of a mutual fund and the increasingly diverse and complex Investment options brought to them by a large number of Mutual funds. AMFI believes that the key channel in bringing the mutual funds to a large number of investors all over the country is the network of intermediaries/ distributors. The intermediaries/distributors have to take on the role of financial advisors to investors, a role for which they need preparation. AMFI Mutual Fund Certification and Registration Programme has been put together to give the fund distributors the knowledge and insights required for them to become both better Intermediaries and more informed mutual fund advisors. Even mutual fund employees need to understand the complexities of how the funds function internally and externally.

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1.2 ORGANIZATION PROFILE Company's Overview In 1982, a group of Hyderabad - based practicing Chartered Accountants started KARVY the finapolis, with a capital of Rs.1, 50,000 offering auditing and taxation services initially. Later, it forayed into the Registrar and Share Transfer activities and subsequently into financial services. The letters K, A, R, V and Y Stands for 5 directors' names. K A R V Y Mr. Kutumba Rao V Mr. Ajay Kumar K Mr. Ramakrishna M S Mr. Vikram Singh Mr. Yuganhar All along, KARVY's strong work ethic and professional background leveraged with Information Technology enabled it to deliver quality to the individual. A decade of commitment, professional integrity and vision helped KARVY achieve a leadership position in its field when it handled the largest number of issues ever handled in the history of the Indian stock market in a year. There after, KARVY made inroads into a host of capital-market services, Corporate and retail, which proved to be a sound business synergy.Today, KARVY has access to

millions of Indian shareholders, besides banks, financial institutions and regulatory agencies. Over the past one and half decades, KARVY has evolved as a veritable link between industry, Finance and people. In January 1998, KARVY became the first Depository Participant in Andhra Pradesh. An ISO 9002 company, KARVY's commitment to Quality and retail reach has made it an integrated financial services company.

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GROUP OF COMPANIES

KARVY
KARVY Consultants Limited Deals in Registrar and Investment Services

KARVY
KARVY Securities Limited Deals in distribution of various investment products, viz., equities, mutual funds, Bonds and debentures, fixed deposits, insurance policies for the investor.

KARVY
KARVY Investor Services Limited Deals in Issue management, Investment Banking and Merchant Banking.

KARVY
KARVY Stock broking Limited Deals in buying and selling equity shares and debentures on the National Stock Exchange (NSE), the Hyderabad Stock Exchange (HSE) and the Over-The Counter Exchange of India (OTCEI).

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Quality Policy To achieve and retain leadership, KARVY shall aim for complete customer satisfaction, By combining its human and technological resources, to provide superior quality Financial services. In the process, KARVY will strive to exceed customers expectations. Quality objectives As per the Quality Policy, KARVY will: Build in-house processes that will ensure transparent and harmonious relationships with its clients and investors to provide high quality of services. Establish a partner relationship with its investor service agents and vendors that will help in keeping up its commitments to the customers. Provide high quality of work life for all its employees and equip them with adequate knowledge & skills so as to respond to customer's needs. Continue to uphold the values of honesty & integrity and strive to establish unparalleled standards in business ethics. Use state-of-the art information technology in developing new and innovative financial products and services to meet the changing needs of investors and clients. Strive to be a reliable source of value-added financial products and services and Constantly guide the individuals and institutions in making a judicious choice of it. Strive to keep all stake-holders (shareholders, clients, investors, employees, suppliers and regulatory authorities) proud and satisfied.

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KARVY the Finapolis - BASAVANAGUDI BRANCH Basavanagudi branch is the Head-office for all the branches and investor service center in Karnataka. All these branches in Karnataka interact with Basavanagudi branch, which in turn interacts with the Head-office KARVY, which is at Hyderabad. KARVY has got Wide network with 142 branches all over India with 2700 employees. There are 154 employees in Basavanagudi branch. The various Departments/Divisions of Basavanagudi Office is: Financial Product Division (FPD) Depository Participant (DP) Investor relation center (IRC) Register and Investor services (RIS) Human Resource and Development (HRD) Electronic Data Processing (EDP) Administration and Purchasing KARVY Insurance division (KID) Internal Audit Accounts

Mutual Fund Division (MFD) ISO - Cell

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KEY PEOPLE Board of Directors - KARVY Consultants Limited Parthasarathy C Yugandhar M Ramakrishna M.S. Prasad V. Potluri Board of Directors - KARVY Securities Limited Parthasarathy C Yugandhar M Ramakrishna M.S. Board of Directors - KARVY Stock Broking Limited Parthasarathy C Yugandhar M Ramakrishna M.S. Board of Directors - KARVY Investor Services Limited Parthasarathy C Yugandhar M Ramakrishna M.S.

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ACHIEVEMENTS Largest mobiliser of funds as per PRIME DATABASE First ISO - 9002 Certified Registrars in India A Category- I -Merchant banker. A Category- I -Registrar to Public Issues. Ranked as The Most Admired Registrar by MARG. Handled the largest- ever Public Issue - IDBI Handled over 500 Public issues as Registrars. Handling the Reliance Account which accounts for nearly 10 million account holders. First Depository Participant from Andhra Pradesh.

Clients Handled Infosys Sonata Mascot systems Canara Bank Uco Bank Jindal Vijaynagar Steel Wipro UTI IL&FS Deutsche Amc Kshema Tec Yokogawa Blue Star Leading Distribution Templeton AMC Pru ICICI AMC HDFC AMC IL&FS Grind lays AMC

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1.3 SERVICE PROFILE

Service provided by KARVY can be divided into 6 categories as: Stock market Mutual funds Personal finance Advisory services Research Demat services STOCK MARKET Technical Calls: Provides information various stock market index like BSE, sensex-30, Nifty. Base on the reliable sources of information various technical analysts provide information about securities. investment KARVY also gives advice on investment decision based on investors' and financial position. Corporate analysis and investment objective

recommendations are also provided by KARVY. Book closure and Record date: Every year the book of the shareholders will be closed for 15 to 20 days. After the book closure whose ever name is there in the book will get the benefits like dividend and bonus. The company announces the record day on a certain day. The person whose name is on the record book will get the bonus and rights. KARVY announces the book closure period of various companies and it also announces the record date of various companies. MUTUALFUNDS NAV: KARVY provides information on NAV of various mutual funds.

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Fact sheets: Fact sheet contains quarterly NAV charts, re-purchase price, sale ice, details of fund managers, market listing, entry load, minimum investment, time frame fro redemption, net assets, annual expense ratio as per prospectus, investment portfolio. Fund returns: KARVY provides information about rate of returns of various mutual funds in detail. Compare funds: KARVY helps investors in comparing various schemes of mutual funds based on their investment objective and financial position. PERSONAL FINANCE Investment Ideas: KARVY provides information about investment opportunities. Investors are finding a ray of hope in stock market. Indian economy is reviving back. Opportunities are becoming prominent. KARVY provides information on various areas of investment like stock market, debt funds, bonds, FD's, IPO. Stock market: KARVY provides market reports three times a day. It also provides daily buy and sell records, sensex updates, Full investments, circuit breakers, and tutorials. Debt funds: KARVY provides expert advice on mutual funds. It also provides comprehensive information on all schemes and NAV alerts. Bonds: KARVY provides information on new bond issue and it also answers the quarries about co-debt issue. FDs: KARVY provides information on issues open for subscription and it also Provides coverage on wide range of FD's from various segments. IPO: KARVY helps the investors to select IPO based on the investor's criteria. Income tax: KARVY provides useful tips to save tax. It also provides details about various tax saving schemes and tax planners. Banking

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KARVY provides information about various schemes of leading banks. It also provides information on net banking, phone banking, FD rates, OD rates, custodial services for NRI's, saving account, recurring deposits. Risk management With the arrival of the new insurance players investors can plan risk management better with many choice available with them. Key insurance players are ICICI prudential, OM Kotak, MetLife, Birla sun life, INGvysya, SBI, Allianze Bajaj, LIC, HDFC standard, and Dabur. KARVY provides information about saving plan, retirement plan, investment plan, endowment plan, money back plan, insurance bond, term plan, preferred term plan, child advantage plan. Home insurance: KARVY provides details about various home insurance policies based on different needs of different investor's section. KARVY provides highlights of various policies, which helps the investor's in overall understanding of various home insurance policies. KARVY provides list of various things that one can get insured. It also covers the important point of each type of policy and what each policy does not cover. Smart loans: Since it is time for smart borrowing KARVY provides details about loan Products with basic details and value added analysis. Home loans: KARVY presents a comprehensive set of information about different home loan products available in market. KARVY helps in choosing home loans. It also helps in effective interest rate calculation and comparison of home loans. Auto loans: KARVY explains pros and cons of car loans and loan basics to its clients. KARVY also helps its clients to select a loan that suits their repayment plans. It also helps In comparing the interest rates of various car loans. It also explains to its clients What things to look for while deciding to take car loan? KARVY also provides Information about higher purchase and lease and different schemes of various banks and NBFC's relating to it.

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Auto scheme types: KARVY provides details about different car finance schemes available. It also explains money margin scheme, one advance installment scheme, multiple advance installment scheme, security deposit and customized scheme. Personal loans: KARVY provides details about consumer loan, features of consumer credit transaction like number of parties to transaction, structure of the transaction, down payment schemes, repayment period and rate of interest, security. Fixed income: KARVY provides details about corporate FD's and bank FD's. ADVISORY SERVICES Market advisory: On the basis of the investment objective and investable wealth KARVY provides advice to investors about their investment. Mutual fund advisory: Based on the interest and investable wealth KARVY helps Investors in investing in diversified equity funds, sector funds, tax saving schemes, Balanced funds, income funds, and liquid funds. Portfolio advisory: Investors will usually be in accumulation phase or cashing in phase. Accumulation phase is the phase where investors have excess of income over requirements and are investing for future goals, retirement, and childrens education, buying a home. KARVY by knowing about investors, their target amount, current financial asset, and earnings helps in investment decision-making. In cashing - in phase the investors financial needs has exceeded his current income and it is the time to cash in on the money that he has saved over the years. Based on the income needs, current financial assets, debt obligations KARVY helps the investors in taking decision. Tax advisory: Based on general details like number of dependents, current gross annual income from all sources, average monthly expenditure KARVY advises on tax planning through investments different types of policies, tax through investments in various bonds, various tax rebates and exemptions available, tax planning as a whole in order to reduce tax liability. CMRIT BANGALORE . 14

Retirement advisory: KARVY advices on allocation VRS to minimize tax liability And Maximize investment returns different investment benefits, loans and credit cards available for senior citizens. It also advises on health plan, which will take Care of any emergency medical expenses and tax saving investments in order to reduce tax liability on retirement savings. RESEARCH Company research: KARVY provides company research reports which gives an in-depth analysis of the movers and shakers of the Indian corporate world. Sector research: KARVY provides sector research reports, which give an insight into the analysis of the key sectors of the Indian economy. These reports give an insight into the characteristics of the sector, critical factors governing the survival of the major players in the sector, government policy and its impact there of, major changes that are taking place and their impact, growth potential and future out look. KARVY also provide detailed updates as and when significant events take place in the industry. Quarterly research: Corporate FIR (first information report) brings a snap hot analysis of annual results of key Indian companies even before other website start work on it. Corporate FIR will also give the time advantage so that one can get in-depth analysis on corporate results well in advance. Company database: KARVY provides balance sheet, cash flow, fund flow, income Statement of various companies, which is of immense, helps to investors.

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1.4 DEPARTMENTAL STUDY HUMAN RESOURCES AND DEVELOPMENT

Study of Existing System The HR function and practices, which are practiced at KARVY. The Finapolis Basavanagudi are: Recruitment The process of recruiting applicants and selecting prospective employees remains a key Strategic area for Human resource management. Given that an organization's Performance is a direct result of individuals it employs, the specific strategies used and decisions made in the staffing process will directly impact an organization's success or lack thereof. KARVY has got its own tailor-made recruitment policies. First step is that the HRD gives a blank format to the respective HOD where there is a need for recruit the format is called as MANPOWER APPROVAL FORM (MAF). In which respective HODs fills MAF, and then process it to HRD. After collecting the MAF, HRD arranges for rounds of interviews (Viz., First level, Technical, HR level etc) according to requirement. In which applicant's ability to perform in a productive way gauged by giving ratings for different abilities. If the applicant gets above 20 points, he will be recruited. Pay Role Administration This is basically administrative work where in the MIS report of all the employees are maintained so as to retrieve whenever required. Here in Pay role work employees' attendance; leave applications; LOP (loss of pay); casual leave (CL); earned leave (EL) and other details of an employee is maintained. CMRIT BANGALORE . 16

Performance appraisal An organization's long-term success in meeting its strategic objectives rests with its ability to manage employee performance and ensure that performance measures are consistent with the organization's needs. Performance evaluation or performance appraisal is becoming more of a strategic issue for organizations than in the past. KARVY has its own way of evaluating their employee's performances. There is a separate format for Performance evaluation. The Performance evaluation or performance appraisal is carried out one or two times a year i.e., either Oct/Nov or Apr/May, whichever is the appropriate. In KARVY the performance evaluation or performance appraisal is a top-down approach, usually the HODs of respective departments carryout this Performance evaluation or performance appraisal. Training and Development If an organization considers its employees to be human asset, training and development represents an ongoing investment in these assets. Training involves employees acquiring knowledge and learning skills that they will be able to use immediately; employee development involves learning that will aid the organization and the employee later in the employee's career. Organization has a detailed Training schedule and training is an ongoing process in KARVY.

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DEPARTMENT OF DEPOSITORY PARTICIPANT (DP) WORKING OF THE DP AT KARVY CONSULTANTS LIMITED 1. 2. 3. 4. 5. Front office Inward section Account opening Trading dept Electronic Data Processing [EDP]

FRONT OFFICE This is the first place where the prospective customers and the current customers come into contact and form a lasting relationship hence this is what is the crucial and the most important point of attracting customers and the ease with which they can operate the accounts henceforth from there. As this counter all types of forms are available right from account opening to range in nomination forms. Besides there are other forms like Dematerialization Request forms, pledge, account closure etc. At this point I shall be stressing on the account opening and dematerialization request forms in order to understand the operations of KARVY consultants Limited as a DP and also to get a better understanding of the working of the DPM. ACCOUNT OPENING For the purpose of account opening the client has to fill in the account opening form. Along with the form the client is required to give an address proof and an identity proof. Once all the details are collected the information like name of the period for which the account is opened etc how the payment is made i.e. cash or cheque is entered into the System, which is known as the DP software, which is specific to KARVY Consultants Limited and a receipt is issued for this purpose. Care should be taken at this point about the name pattern on the shares (if he has got any) should be the same as that in which CMRIT BANGALORE . 18

Pattern the account is opened though initials either before or after is acceptable. DEMATERIALISATION For dematerialization, demat request forms (DRF) these are required to be filled in triplicate. Here again the client details like name of the holders, client id, name of the Company the amount paid is all collected and a receipt is given for it. But demat request are accepted only if the company is under the demat. Hence at the time of submitting for demat the staff checks for if the company is under demat, if they is any name change or any other changes which might result in dematerialization rejections this all is checked at the front office it self. After that the details are entered into the system like client id number of scrips and the number of shares and the amount is collected. DELIVERY INSTRUCTION SLIPS Every client on opening an account gets the delivery instruction book. Whenever the client wants to sell or transfer the shares he has to make use of this instruction slips. On, receiving of the slips they first enter the slips on the offline on system in the software that they use where client id, and receiver details and the number of Securities and the name of the securities is all entered infact they don't have to type the full name in the place provided for the names of the share that are going to be traded as in the software it self if they type just the initials it self it is enough as then a list of the shares with that initial appear and as per the list of the instruction of the client they choose and check the ISIN number or if not written then they write it out. Once this is done a transaction number is generated and this number is used for future reference. REMATERIALISATION This is the complete opposite of dematerialization, here the forms are issued to the clients and they fill in the details regarding the number of shares that have to be rematerialized. Along with a remat form usually a holding statement is also attached to show that the client actually has those shares in his account. CMRIT BANGALORE . 19

PLEDGE The shares can be pledged against any loan taken. A form for such pledge is required to be filled in the rate and calculations need not be done manually it is automatically calculated in the system all they have to do is type in the required details. If one wants to close the pledge there is a pledge closure form. FREEZING AND DEFREEZING Freezing is usually done when the client does not want to operate his account for a long period of time it is usually done when an investor will be out of town for a long time period and thus wont be able to trade the freezes his account. At this time the account is deactivated and thus no transact ion can take place. Once it is defreeze the account can be activated. Even the facility of freezing only one scrip is also allowed. ACCOUNT CLOSURE For this there is a form, which the client has to fill and submit to them. Once this is done the account is then closed. MISCELLANEOUS Besides these the front office handles the queries of the clients like transactions statements, holding status, amounts to be paid, pending demat, even to the extent that when clients don't know their id numbers these can be got at the front office as they have in the system a client id search where in they enter the name the client and enter the start of the id number and them it automatically searches the names of the clients with that name and then the details like address can be checked to clarify the same. Here the soft ware designed helps a lot as even though the front office don't have direct connectivity all details are updated and the clients can view their holdings know if the shares have been demated or not and also get to know if they are any dues to be paid and the break up of these payments its so wonderful that some clients pay lump sum amount in advance and this is shown as on account amount so when ever the clients receives CMRIT BANGALORE .

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the payment bills he just has to phone and tell them to adjust the amounts or even come over and make the adjustments. Having gone through the front office then we come to the actual part, which is the back office operations, and the software makes even these operations easier and safe, we shall see how. Thus having such a software at the front office though it does not have direct connection with NSDL one can view the holdings, any changes made etc thus the back office people are not disturbed with the clients so they can concentrate on their activities alone. BACK OFFICE OPERATIONS Here we have four departments one is the inward section the other deals in account opening, trading, accounting and the other is the EDP. INWARD SECTION Here the forms that are collected in the front office are then passed on to this section where number is stamped on the forms may it be delivery instruction slips or account opening forms or demat any forms that may be collected at the front office is submitted here. It is here that the shares submitted for demat are defaced by marking surrendered for dematerialization and punching two holes on the face of the security certificate. With the stamping of the number a register is also maintained which contains the details of the forms like the type and name of the clients so that when they are handed over to the respective departments they sign the register as a proof of receipt of the respective documents. ACCOUNT OPENING DEPARTMENT The second we have is the account opening where this dept handles all account opening and demat request forms as well as rejection of Demat Request Forms. Here whatever account opening forms are collected at the front office the details on the form are entered into the system of course before doing this the applications are checked. Once the information is captured on to the DPM within one minute a number is generated that is the client id, however this number is not activated as this information has to be released to NSDL

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only then does the account becomes active here only information is entered and numbers are generated. Then a senior official who has the rights to release the data to NSDL then crosschecks the information and only then releases the information till then it was in the captured stage. It takes around two to three minutes for NSDL to accept and activate the account. With the demat request form the same is done that is as we know in the front office the name of the clients company name number of securities is all entered so here this is all cross checked and then only the ISIN number of the companies is written and these are entered in lots of 25 each i.e. at a time 25 drf are punched into the system and these numbers are written on the drf so this helps in their internal future reference. All this is done in the software, which is specific to KARVY Consultants Limited the back office mentioned earlier. This is then copied on to the DPM, which has got connectivity with NSDL. Thus here the software helps in saving time instead of directly punching onto the system it is first entered offline and cross checked and only then copied to the DPM. When this is done the DPM automatically generates a DRN (Demat Request No), which is then written on the DRF. After this a senior official who has the rights to release the data to NSDL once again cross checks and releases the data to NSDL till then it is in the captured stage. Hence forth then all reference to the demat request queries is checked with the help of the DRN. Once this is done a covering letter along with the DRF and the certificates is sent to the concerned registrar for getting rid of the physical securities once the registers do this they communicate this to the NSDL and NSDL then credits the clients accounts with the requested no of securities. TRADING DEPARTMENT This department is the most important one that handles delivery instruction slips. It also handles slips that may be faxed to them either by the other branches or by the clients them selves however if the clients have to fax then they have to enter into an agreement on a Rs 20/ stamp paper and within 24 hrs the original copy has to reach the dept. CMRIT BANGALORE . 22

On receiving of the slips they first enter the slips on the offline on system in the software that they use where client id, and the number of securities and the name of the securities is all entered appear and as per the list of the instruction of the client they choose and check the ISIN number or if not written then they write it out. Once this is done a transaction number is generated. This department does all this, when they receive faxes as usually all this is done and checked by the front office. But once it comes on to the department then they have to also then verify the signature of the clients. They usually type in the transaction number and check in the details entered. Once this is done it is then copied on the online system, which has direct connectivity with NSDL. Once it is copied the DPM automatically, generates a number that is known as the instruction id this is then written on the space provided in the delivery instruction slip this number then helps all future reference for that specific slip. After this is done then an authorized person who has got the rights will then type the instruction number and will check all the information that has been fed and also verify the signatures and only then release the information to NSDL. Here once again there is safety of the customers as chances of rejection are very less. ACCOUNTS In this department accounts are maintained. The cheque or cash that are collected at the other branches are sent on a daily basis by courier. These are checked with the amounts entered into the system. Now infact Goa branch does not send demand drafts but they now have an account with ICICI in which they deposit and send the details across to Bangalore. Here it self we have another personnel who checks the mails and requirements of Delivery instruction books of the different branches. Besides any changes like of bank details address and nominee are changed but as a normal practice for safety and efficient one person who is authorized to change makes the changes and the other person who has got rights to release it

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releases it to NSDL. Acknowledgements for the above changes are also sent to the respective clients. The major thing to be noticed here is that the person who punches in the data does not have the rights to release, thereby providing safety. ELECTRONIC DATA PROCESSING This is where the software is developed and handed over for use in the office. In fact This plays a major role in the efficient and smooth running of KARVY consultants limited. If there is any problem at any time it is handled by them. EDP is like the backbone of KARVY Consultants Limited. Here on daily basis that is at the end of the day the branches whatever data they have entered in to the system that is the transaction are sent to the regional office and the next morning all data that is worked on at the regional office this is updated and sent across to the branches. Thus not only can one view accounts opened in Goa here but also those that are opened in Bangalore without having a direct connection with NSDL that's what makes working of the DP at KARVY Consultants Limited so different and efficient. When the accounts are opened for the first time the data that is entered into the system like name and amount paid is then viewed by these personnel and used at the time of billing. Thus we have the departments in the Depository section where each one contributes to give the best of best services to the customers and thus making KARVY Consultants Limited one of the best Depository Participant with such a network. We also say that the software used by them has eased a lot of work and brings safety to the investors, as chances of errors happening are very less unlike the other DP's where matter is directly entered online holdings are viewed online so there is so much of disturbance for the personnel handling the online that chances of going wrong are tremendous. Here the work is broken up and given to each department thus brings about efficiency and specialization on the part of the working staff. One can view not only accounts opened in Goa here but also those that are opened in Bangalore without having a direct connection with NSDL that's what makes working of the DP at KARVY Consultants CMRIT BANGALORE .

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Limited so unique and efficient. FUNCTIONING OF MARKETING DEPARTMENT. The success of any organization depends on functioning of its marketing department if that is a service marketing company then the marketing department becomes the key department. In KARVY the marketing department has key role in all other departments, the job of The marketing department changes according to the product and its profile. But function Wise almost all marketing department follows the same method, these are the functions followed by KARVY marketing department specially Mutual Fund. o Identifying target segment customers. o Sourcing customers. o Profiling customers. (demographic) o Risk attributes of customers. o Cold calling and tele- marketing to reach to the target customer. o Product presentation. (awareness, interest creation, closing of call) o Follow up with the customers for business. (after closing the call) After closing the call the applications received along with the cheque, then login applications at the back office. (internal) the applications will be collected by the respective Mutual Fund companies for processing and the account statements are directly dispatched to the concerned investors within 48 hours. REGISTRARS AND INVESTORS SERVICES Registrar and Investor Services is one of those departments of KARVY, which has been there ever since its inception. This tedious task of undertaking registry services for the companies was started two decades ago under KARVY consultants ltd. KARVY's experience in handling Registrar and Transfer activities has paved the way for it to foray into the financial services sector. Registrar and transfer Agents shortly known as the RTA's are the people who agree to undertake all the activities of a public limited company from the time of receiving share applications during the initial offer until the time the company is liquidated. Registrars of any CMRIT BANGALORE . 25

company have to be highly experienced, professional and experts in handling innumerable accounts of the shareholders. Any public company makes an intensive study of the capabilities of a particular Registrar before signing the agreement of handling all its activities. Experience of handling large public issues of prestigious companies give KARVY the position of being one of the best registrars of public issues. KARVY as a Registrar has achieved enormous success in a short span of time. Some of its achievements are: First ISO-9002 certified Registrar in India. A Category-1 Registrar to Public Issues Ranked as "The Most Admired Registrar "by MARG. Handled the largest ever Public Issue-IDBI. Handled over 500 Public Issues. Registrars are the people who are involved with a company on a long term basis until The company liquidates or cancels the contract. Registrars maintain all the records of the share holders and make all the required changes in their database on the request of the client or the company. They perform a number of activities like: o o o o o Study of the issuing company Receiving duly filled share applications from people and sending it to the company. Based on the allotment criteria of the company, the registrars will allot the respective Number of shares based on the shares applied for. Maintains the database of all the shareholders including all their details in that. CMRIT BANGALORE . 26

Updates the database in case of any purchase and sales. Registrars are basically the link between the company and the shareholder. They take care of the communication network between the two parties. the company informs the registrar about any policy or decision taken in the company, and it is the registrar who conveys this message across to every single shareholder in the database. The decisions taken by the company about the Annual General Meeting, dividend distribution, bonus issue, rights issue, buyback and such other information which has an effect on the share holder is dealt with by the registrar.The Registrar as per the instructions of the company takes care to inform about the changes to every Single investor and make appropriate changes in their database. Similarly, any clarification or query of the investors is directly addressed to the Registrar and solved immediately. Physical transfer of shares is no longer done extensively in the market unless the number of shares held is less. Transfer of shares in the electronic mode is monitored by the registrar and is recorded in the transferee's name only if the formalities are completed. The registrar in such a case has to ensure that all the communication has to reach the New holder of shares. Dematerialization of shares is a necessity in the present financial market transactions. In the conversion process of the physical certificate to the electronic form, the registrar plays a vital role. The demat process is complete only after the registrar verifies the ownership of the physical certificate and sends a confirmation to the Depository Participant about the conversion. All queries of the investors regarding the allotment criteria, shares allotted not credited to their account, the investor not being informed about the developments of the company and such other queries are directed to the registrar only for clarification. INVESTOR RELATIONS CENTRE Investor Relations actually means the relation of the investor with the companies or institutions they have invested in every company along with profits aspires to have good relation with their investors, customers or clients. Investor relation is the most significant factor, which in a way is the measure of the success and reach of the company. It is basically the perception of the investors with respect to the product, service, profitability and marketability of the company. Investor relation is not only concerned with retaining the customers of a product but also has a

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great impact on the functioning of the company. The perception of the investors and customers help to increase the goodwill and in turn increase the profits due to higher sales achieved by the company. The quality of the product or service is not always important to increase the profitability but is the way in which these products or services are offered to the investors. In a highly competitive market, where there is a new company every day, it is not difficult for a customer to get the product/ service of his choice. The companies have realized it the hard way that one satisfied client can get many more clients in the future. Investor relations play the most vital role especially in the financial service sector. Financial services are basically investment avenues for the funds of an investor. The company providing the financial service and product Should take all measures to not only safeguard the money but also ensure greater return on the investment. Investor relations play a pivotal role in the success of a company because it is not only funds but also trust and faith of the investor on the company. The Investor Relations Centre (IRC) of KARVY Consultants Ltd. is a department, which symbolizes the main purpose of KARVY, which is service to the customers. It is a department, which solely functions for the service of the investors and customers of most of the financial services. The functions of this department do not pertain only to the companies or institutions dealing with KARVY in some way or the other, but provides service irrespective of the company and the product. IRC is a component of the Registrars and Investor Services department of KARVY. It deals with all activities and queries, which arise from the activities handled by RIS. IRC guides and helps the investors in their clarifications and queries and provides feasible solutions to those problems. The various areas in which the IRC helps the investors are: Transfer of shares. Transmission of shares Deletion of first holder, joint holder

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Change of name Change of status in the certificate Fully convertible debenture Partly convertible debentures Bonus issues Right issues

Buy-back of shares

All queries regarding dividend. Change of address Loss of physical certificates The above mentioned areas are just a brief list of the various areas in which they provide service to the customer. IRC basically deals with all queries regarding the physical share certificates only and does not deal with the dematerialized shares. They are aware of the facts and details of every company and have to have all information at their fingertips. IRC not only provides all information about the company for which they are the Registrars but also provides all information about other Registrars. The investor will get solution on the right person to approach or the appropriate company to address or the right way to communicate for the problem. IRC has information about specific company details, legal formalities and ownership rights of securities and also management policies of various departments. IRC cannot function and will not serve the right purpose if it is not aware of the current market scenario. KARVY provides this service without expecting any return from the investor and the respective company. The functioning of IRC is solely and genuinely for serving the investor and also the community. The motive of KARVY being a financial intermediary and service provider is totally justified in this department. All the queries and the letters received by IRC are recorded using the in-house software CMRIT BANGALORE . 29

and helps them to keep track of the complaints and queries. The various queries and complaints are segregated under various heads for administrative purpose. Stock Broking Division In stock broking division of KARVY BSE and NSE shares are traded. Stock broking division of KARVY deals only in secondary market. Secondary market is the market for already existing securities. The stock broking division of KARVY is having its branches in different areas of Bangalore. Each stock broking division is Comprised of a trading hall and a back office to maintain accounts of clients. Any individual who wants to trade securities through KARVY has to fill an application form given by KARVY. Clients have to submit specified number of photos, address proof, photo identity proof, bank account statement, and demat account details. Each client will given an account number like C16, E20. These account numbers assigned to each client will be different from other clients, which the clients will use while trading the securities. The orders given by the trading member are of different kinds like Time base order: Day order is valid only for the entered day. If not matched during the day it is cancelled automatically at the end of the day. The system keeps the order till the trader cancels the order. A good till day order: Here the trader specifies the number of days the order should be in the system, if not matched. The system eliminates the order at the end of this period. Immediate or cancel order: This order enables the trading member to buy or sell a security when the order is released in the market. If not matched the order will be removed from the market. Stop loss order: CMRIT BANGALORE .

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Here the order is activated only when the market price of the respective security crosses a threshold price, until then the order does not enter into the system. If price falls below or equals to limit price, immediately the system releases the order. KARVY undertakes trading of securities only 5 days a week. The trading time is 9.55 to 3.30. KARVY collects a certain amount of margin from its members who have traded securities. The margin amount collected depends on type of the securities traded by the member. KARVY maintains client ledger, script ledger, party ledger, stock ledger. Client ledger gives details about net debit and credit of the day of each client. It also provides details about the trade done on different days by members. Script ledger maintained by KARVY provides details about trading done by members on various scripts. Party ledger gives details regarding a single party. 1.5 FINANCIAL DETAILS 60% growth in the last two years prior to 2003-04. In the year 2003-04 turnover grew by over 50% Profits increase by 25%. Major income from broking business, DP During the year 2003-04 income from distribution business also got added to the overall income. Sales grew by 27% and profits grew by 32% during the last five year.

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2.1 Application of 7 s Model

The 7-S-Model The 7-S-Model is better known as McKinsey 7-S. This is because two persons who developed this model. Tom Peters and Robert Waterman have been consultants at Mc Kinsey &Co at that time. Thy published their 7-S-Model in their article "Structure is Not Organization" (1980) and in there books The Art of Japanese Management (1981) and "in Search of Excellence" (1982). The model starts on the premise that an organization is not just structure, but consists of seven elements: Those seven elements are distinguished in so called hard S's and soft S's. The hard elements (green circles) are feasible and easy to identify. They in be found in strategy statements, corporate plans, organizational charts and other documentations. The four soft S's however, are hardly feasible. They are difficult to describe since capabilities, values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in organization. Therefore it is much more difficult to plan or to influence the characteristics of the soft elements. Although the soft factors are below the surface, they can have a great impact of the hard Structures, strategies and stems of the organization. It's all very well devising a strategy, but you have to be able to implement it if it's to do any good. The Seven-S Framework first appeared in The Art of Japanese Management by Richard Pascal and Anthony Athos in 1981. They had been looking at how Japanese industry had been so successful, at sound the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven-S model was born at a meeting of the CMRIT BANGALORE .

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four authors in 1978. It went on to appear in "In Search of Excellence" by peters and Waterman, and was taken up as a basic tool by the global management consultancy McKinsey: it's sometimes known as the McKinsey 7S model. Managers, they said, need to take account of all seven of the factors to be sure of successful implementation of a strategy - large or small. Theyre all interdependent, so if you fail to pay proper attention to one of them, it can bring the others crashing down around you. Oh, and the relative importance of each factor will vary over time, and you can't always tell how that's changing. Like a lot of these models, there's a good dose of common sense in here, but the 7S Framework is useful way of checking that you've covered all the bases. McKinsey & Co's 7S framework provides a useful framework for analyzing the strategic attributes of an organization. The McKinsey Consulting Firm identified strategy as only one of seven elements exhibited by the best managed companies. Strategy, structure and systems can be considered the "hardware" of success whilst style, staff, skills and shared values can be seen as the software". Companies, in which these soft elements are present, are usually more successful at the implementation of strategy.

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DESCRIPTION: STRUCTURE: The seven S models add a contemporary perspective to the problem of organizational structure. The McKinsey consultants point out that in today's complex and everchanging environment, a successful organization may make temporary structural changes to cope with specific strategic tasks without abandoning basic structural divisions throughout the organization. STRATEGY: The seven S-models emphasizes that, in practice, the development of strategies poses less of a problem than their execution. SYSTEMS: This category consists of all the formal and informal procedures that allow the organization to function, including capital budgeting, training, and accounting, systems. Systems can overpower expressed strategies. Thus, a consumer goods manufacturer might find it impossible to implement a new portfolio strategy if its management information system is not adjusted to produce the necessary cost data by segment, because there would be no way to compare the different segments of the business. STYLE: Style refers not to personality, but to the pattern of substantive and symbolic actions undertaken by top managers. It communicates priorities more clearly than words alone, and may profoundly influence performance. For example consultants have found that even oil and mineral exploration efforts-surely matters of operational skills and luck more that strategy benefit from top management attention. Exploration is more successful in companies whose top managers spend more of their own and the board's time participation in exploration activities, articulate better reasons for exploration, recruit more pepole with exploration experience, fund exploration more consistently, and have exploration managers report to higher organizational levels. CMRIT BANGALORE .

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STAFF Successful organizations view people as valuable resources who should be carefully nurtured, developed, guarded, and allocated. Top managers devote time and energy to planning the progress and participation of existing managers, and use job assignment policies to actively foster the development of new managers. Similarly, new hires are given jobs in the mainstream job the organization, whether that the marketing or new product innovation. Talented individuals are assigned mentors, put into fast-track programs, exposed to top management and rapidly moved into positions of real responsibility. SKILLS: The term a skill refers to those activities organizations do best and for which they are known. For example Due point is known for research, Procter & Gamble for product management, ITT for financial controls and Hewlett Packard for innovation and quality. Strategic changes may require organizations to add one or more new skills. Strategic initiatives that require the dismantling or revising of an old skill pose even more difficult implementation problems. SUPERORDINATE GOALS: This refers to guiding concepts, values, and aspirations that unite an organization in some common purpose. Super ordinate goals are often captured in a mission statement, but they can also be phrased as a simple slogan, such as "new products" at 3M. Super ordinate goals have deep meaning within the organization. They provide a sense of purpose and certain stability as other, more superficial characteristics of the organization change. In the case continuation, we will see how some of these Seven S's work at Sega.

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THE 7-S-MODEL WITH REFERENCE TO KARVY The 7-S-Model is better known as Mckinseys 7-S. This is because the two persons who developed this model, Tom peters and Robert Waterman, have been consultants at Mckinsey & Co at that time. They published their 7-S-Model in their article "Structure Is Not Organization" and in their books "The art of Japanese Management" (1981) and "in Search of excellence" (1982). The Model starts on the premise that an organization is not just Structure, but consists of seven elements. Those seven elements are distinguished in so called hard S's and soft S's. The hard elements are feasible and easy to identify. They can be found in strategy statements, corporate plans, organizational charts and other documentations. The four soft S's however are hardly feasible. They are difficult to describe since capabilities, values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in organization. Therefore it is much more difficult to plan or to influence the characteristics of the soft elements. Although the soft factors are below the surface, they can have a great impact of the hard Structures, Strategies and systems pf the organization. The Hard S's Strategy Actions a company plans in response to or anticipation of changes in its External environment. Being a company of KARVY's stature the company cannot afford to work without objectives. An overall group objective is already set and all the employees are driven towards that KARVY believes that "no individual is a big as the organization itself. Competition is the key to survival and for giving diversification for the given product as such competition is always good. KARVY updates itself of the surrounding competition and bring out in the service and related products to beat the competition. In the distribution business KARVY enjoys a 40% market, which is very healthy from the industry standards. The survived of the company as well as the growth of the company over the past 22 years has purely been on beating competition of effectively overcoming the competition. CMRIT BANGALORE . 37

Structure Basis for specialization and co-ordination influenced primarily by Strategy and by organization size and diversity. Regional Level Regional Manager (V P) General Manager Deputy General Manager Assistant General Manager Senior Manager/ Manager Assistant Manager

Securities Systems Formal and informal procedures that support the strategy and Structure. The organization follows strict rules and regulations for the employees. It follows specific entry and exit timing for all its employees. Each employee has to follow a specific dress code depending on his line or work or duty. All junior staff members will have to report to the designated senior staff member daily attendance register to the H R department, which is duly processed at the end of each month.

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The Soft S's Style The culture of the organization, consisting of two components: Organizational Culture: the dominant values and beliefs, and Norms, which develop over time and become relatively enduring Features of organizational life. Management Style: more a matter of what managers do than what they say; how do a company's managers spend their time? What Are they focusing attention on? Symbolism- the creation and Maintenance of meaning is fundamental responsibility of Managers. Its chairman who sits at the Head Office in Hyderabad heads the organization. At all Other branches across the country Regional Manager have been appointed. The chairman will take decisions related to the group as such. Regional heads will take all other decisions relevant to the regions and their line of work. Each and every manager is responsible and accountable for his or her decisions and subsequent implementations. By and large the decisions making are decentralized for day-to-day affairs. Only key decisions are made the Head Office.

Staff The people/ human resource management-processes used to Develop managers, Socialization processes, ways of shaping basic Values of management cadre, ways of introducing young recruits to the company, ways of helping to manage the careers of employees. Each incumbent should have a specific academic qualification to match the position he she is going to held. And also necessary skill to execute the assignment. Marketing/Sales people should possess at least a degree and a management degree a preferred and should necessity process good communication skill and flair for sales. He or she should also have a two-wheeler for commuting purposes. All the back-end CMRIT BANGALORE . 39

employees should have at least graduation with exposure to necessary skills. For freshers due training will be given and then will be put in the jobs. Their potential will be monitored on a regular basis and will be given suitable guidance from time to time. Annual increments are also given based on the performance predominant and KARVY has a mix of marketing and back end employees. The emphasis is more for service. Since it is a service industry. Marketing and sales staff is trained on the product knowledge and selling skills are also taught.

Skills The distinctive-Competences what the company does best, ways Of expanding or shifting competences. A manager is normally viewed as a skilled person who has the ability to manage people And resources and at times finance also. He or she will be responsible to identity right People for the right job and get the work done effectively. Minimum wastages and maximum utilization of available resources is the key organizational behavior and culture is taught to the fellow employees and potential employees are suitably nurtured. Super ordinate Goal Guiding concepts, fundamental ideas around which a business is built must be simple, usually stated at abstract level, have great meaning inside the organization even though outsiders may not see or understand them. Our mission to be a leading, preferred service provides to our customer, and we aim to achieve this leadership position by building an innovative, enterprising and technology driven organization which will set the highest standards of service and business ethics. KARVY's aspiration of establishing itself as an integrated financial services company is propelled by a vision that is shared by its entire work force. Towards this end, KARVY has dedicated itself to:

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 Have a single - minded focus on investor services Establish KARVY as a household name for financial services Set industrial standards Establishing a leadership position in all chosen areas of business And in the process, become the crucial link between industry, finance and people KARVY's adherence to its core values - integrity, enterprise and innovation has earned It an enviable reputation amongst all the intermediaries and regulatory authorities of the capital and financial market. Effective organizations achieve a fit between these seven elements. These criteria the origin of the other name of the model: Diagnostic Model for organizational effectiveness. If one element changes then this will affect all the others. For example, a change in HRsystems like internal career plans and management training will have an impact on organizational culture (management style) and thus will affect structures, processes, and finally characteristic competences of the organization. The 7-S-Model is a valuable tool to initiate change processes and to give them direction. A helpful application is to determine the current state of each element and to compare this with the ideal state. Based in this it is possible to develop action plans to achieve the intended state. Advantages of Mckinsey 7-S Model The McKinsey 7-S Model is s widely discussed framework for viewing the interrelationship of strategy formulation and implementation. It helps to focus manager's attention on the importance of linking the chosen strategy to a variety of activities that can affect the implementation of that strategy. Originally developed as a way of thinking more broadly about the problems of organizing effectively, the 7-S framework provides a tool for judging the do ability of strategies. It helps to think comprehensibly about a new strategy and the problems with carrying it out, it helps to a manager to think of his company as unique culture and think about the ability of the CMRIT BANGALORE . 41

company to get anything really fundamental accomplished as a matter of moving the whole culture. McKinsey 7-S framework is of Seven Compasses. When the needles are aligned the company is "organized". When they are not, the company is not really organized even if its structure looks right. If a 7-S analysis suggests that strategy implementation will be difficult, managers either can search for other strategic options, or go ahead but concentrate special attention on the problems of execution suggested by the framework.

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2.2 SWOT Analysis

(Strength-Weakness-Opportunity-Threats)

This is an analysis of strengths, weakness, opportunity and threats for KARVY the Finapolis, Basavanagudi. OPPORTUNITY Can make use of sustained growth In retail segment of financial products. Due to high awareness of financial products among general public business growth could be higher. Can make of technology to market products (e-selling). THREATS Increased competition from contemporaries in the market. Decreasing margins by way of commission.

STRENGTHS Nationwide Network of branches. Renowned brand name in financial product distribution. Multi product activities in Financial products. 1 in top 5 stockbrokers in the country. Strong brand recall among retail investor Reach (mass marketing).

THINGS WHICH NEEDS TO ENHANCE All employees lack multi product skill despite being multi Product Company. Systems (infrastructure) up gradation still not up to the mark.

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3.1 STATEMENT OF THE PROBLEM In today's market, Customer Satisfaction is very important to retain the existing customers, marketing channel strategies have to be developed in order to become the market leader and grab a good market share, the company should bring awareness about its products. Knowledge of prospects perception, their awareness about the company and preferences towards satisfying their in formulating channel strategies. 3.2 OBJECTIVES OF THE STUDY AIM: To identify the customer satisfaction level towards the services of KARVY with special reference to the Mutual Funds. Sub objectives To study the perception of the customer towards KARVY services. To identify satisfaction level of the customers of KARVY with special reference to its Mutual Funds. To identify the comfortableness of customers with service of the KARVY executives. To identify the Knowledge Level of KARVY executives. To identify the feeling of customer about basic information provided by KARVY executives. To identify any delay in the processing. To identify the time taken to receive cheque receipt. To identify the queries about Mutual Fund schemes.

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3.3 METHODOLOGY OF DATA COLLECTION SOURCESS OF DATA Data collection process: Primary data: Survey method is adopted for this study. Questionnaires were used as a tool for collecting primary data and the customers were been interviewed. Secondary data: The information collected and gathered from book, magazines and information from the web sites are used as the secondary data.

SAMPLING DESIGN Convenience Sampling A method of non-probability sampling technique was adopted to obtain a sample of convenience elements. The selection of sampling units was left primarily to the interviewer. Sampling size of hundred was considered for the survey. Data was collected through interview with the help of the questionnaires. TOOLS AND TECHNIQUES OF DATA COLLECTION The primary data were collected by interviewing the respondents with basis of questionnaire designing, which included relevant data for preparing report. Other relevant data was collected through survey.

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Method of Analysis: The data collected from the primary source has been tabulated to various tables. Further data was analyzed and inferences were drawn accordingly. 3.4 SCOPE OF THE STUDY The study has been based on the survey conducted in Bangalore information has been collected from the existing MF customers of KARVY. Belonging to different age groups, sex, income and occupation. This study is useful in identifying the segment of population, which are satisfied or not. It will also, help in terms of providing opportunities to know the customer expectations. And improve the services upon it. And to increase the customer satisfaction level. INTRODUCTION TO THE MARKET RESEARCH Market research and marketing research are often confused. Market research is simply research in to a specific market. It is a very narrow concept. Marketing research is much border. It not only includes 'market' research, but also areas such as via the Internet. Here are a couple of definitions: Marketing research is function that links the consumer, customer and the public to the marketer through information- information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs, the methods for collecting information, manages and implementation the data collection process, analysis and communicates the findings and their implications. --American Marketing Association - Official Definition of Marketing search. obviously, this is a very long and involved definition of marketing research. Marketing research is about researching the whole of a company's marketing process. ---- Palmer (2000) the explanation is far more straightforward i.e. marketing research into the elements of the marketing mix, competitors, markets, and everything to do with the customers.

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MARKETING RESEARCH PROCESS Marketing research is gathered using a systematic approach. An example of one follows; 1. Define the problem. Never conduct research for things that you would like to know. Make sure that you really need to know something. The problem then becomes the focus of the research. For example, why are sales failing in New Zealand? 2. How will you collect the data that you will analyze to solve your problem? Do we conduct a survey, or do we arrange a focus group? The Methods of data collection will be discussed in more detail later. 3. Select a sampling method. Do we us a random sample, stratified sample, or cluster Sample? 4. How will we analyze any data collected? What software will we use? What degree of accuracy is required? 5. Decide upon a budget and a timeframe. 6. Go back and speak to the managers or client's requesting the research. Make sure that you agree on the problem? If you gain approval, then move on to step seven. 7. Go ahead and collect the data. 8. Conduct the analysis of the data. 9. Check for errors. It is not uncommon to find errors in sampling, data collection method, or analytic mistakes. 10. Write your final report. This will contain charts, tables. And diagrams that will Communicate the results of the research, and hopefully lead to a solution to your problem. Watch out for errors in interpretation. SOURCES OF DATA - PRIMARY AND SECONDARY There are two main sources of data - Primary and Secondary. Primary research is conducted from scratch. It is original and collected to solve the problem in hand Secondary research, also known as desk research, already exists since it has been collected for other purposes.

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PRIMARY RESEARCH There are many ways to conduct primary research. We consider some of them: 1. Interviews 2. Mystery shopping 3. Focus groups 4. Projective techniques 5. Product tests 6. Diaries 7. Omnibus Studies SECONDARY RESEARCH Secondary (or desk) research uses data that has been collected for other objectives than your own i.e. it already exists. There are a number of such sources available to the marketer, and the following list is by no means conclusive: Trade associations National and local press Industry magazines National/ international Government Web sites Informal contacts Trade directories Published company accounts Business libraries Professional institutes and organizations Omnibus surveys Previously gathered marketing research Census data Public records. I have given a general introduction to marketing research. Marketing research is a huge topic area and has many processes, procedures and terminologies that build upon the CMRIT BANGALORE . 48

points above. RESEARCH METHODOLOGY To achieve the set of objectives, the research was conducted to collect the data from the mutual Fund customers through questionnaires and by interview method. TO SUMMARISE. Research tool: Data collection Tool: Sample size: Sampling method: Data source: Structured questionnaire. Telephone survey. 100. Convenience sampling. Primary data from survey.

3.6 LIMITATIONS OF STUDY The preparation of the project work was successful with gathered information, but has some limitations The customer survey is conducted for a proper feedback, where the information may not be a proper feedback for from the respondents. Some respondents may refuse to reply the questionnaire intentionally or unintentionally. The respondents may try to avoid the questionnaire because they may not have sufficient time to answer the questions. The survey was through interview, so it depends on people's mood. The research is mainly concentrated in Bangalore city, so it may not represent the national scenario. The data collection so far had been confined to this particular time period only.

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ANALYSIS AND INTERPRETATION OF DATA Table-1 Period since the respondents are availing the service from KARVY

Duration No of Respondents Percentage

Below 1yr 66 66%

1-2yrs 15 15%

3-5yrs 7 7%

Above 5yrs 12 12%

66% respondents interviewed in this survey are availing service below 1 year. 15% respondents are availing service between 1 to 2 years. Only 7% respondents in this survey are availing service from 3 to 5 years. 12% respondents are availing service from more than 5 years.

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CHART 1: Period since the respondents are availing the service from KARVY

Period of respondents service

70 60 50

Percentage

40 30 20 10 0 below 1yr 1-2yrs 3-5 yrs Above 5 yrs

Period

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Table-2 Medias through which the respondents became aware of KARVY for the Medias No of respondents Friends 26 Advertisements 25 KARVY Executive 27 first time

If any other 22

Table shows that 26% respondents came to know about KARVY by friends. Table represents that only 25% of respondents came to know by advertisements. Table shows that 27% respondents came to know by the marketing executive.

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CHART 2: The media through which the customer came to know about KARVY.

Media of awareness
30 25
no of respondents

20 15 10 5 0 1 2
Friends Advertisements karvy executive If any other

medias

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Table -3 The Customer comfort level with KARVY executive Comfort level Very comfortable 5 5% Comfortable Neither comfortable Nor Uncomfortable 3 3% Un comfortable 20 20%

Respondents Percentage

72 72%

72% respondents are comfortable with executive service. 5% respondents say they are very comfortable with service. 3% respondents are neither comfortable nor uncomfortable. 20% respondents are uncomfortable.

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CHART 3: The comfort level of respondents with KARVY executives.

80 70 60 50 40 30 20 10 0 Very comfortable Neither comfortable not uncomfortable Series2 Series1

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Table-4 Knowledge level of executive according to the respondents Knowledge level Respondent s Percentage Highly Knowledgeable Average Below Not at all Knowledgeable Average Knowledgeable 0 77 20 3 0 0% 77% 20% 3% 0%

77% respondents say the executives are knowledgeable. Only 20% respondents say they are average. No respondent said they are highly knowledgeable. Only 3% respondents said they are below average.

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CHART 4: The executive knowledge level

Knoweldge leve of KARVY executive

80 70 60 50 No. of 40 respondents 30 20 10 0

Series2 Series1 Average

Highly Knowledgable

Knoweldge level

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Table-5 Respondents opinion about the sharing knowledge about services Sharing of information Respondents Percentage Full information 42 42% Satisfactory information 53 53% Less information 5 5% Very less information 0 0%

42% respondents say the executive gave full information regarding services. 53% respondents say they received satisfactory information about services. 5% respondents say executives gave less information about services.

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CHART 5: Sharing of information by executives

Full information 5%0% 42% 53% Satisfactory information Less information Veryless information

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Table-6 Delay in processing Processing Delay Respondents Percentage No delay 42 42% Little delay 53 53% Acceptable delay 5 5% Long delay 0 0%

42% of respondents say there was no delay in processing. 53% of respondents say there was little delay in processing. 5% say there was acceptable delay. There are no complaints saying long delay in processing.`

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CHART 6: Delay in processing

Processing delay
60 50 no of 40 respondent 30 20 s 10 0

No delay

Acceptable Delay

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Table-7 Time taken to receive the cheque receipt Time taken to receive cheque receipt Respondents Percentage 1-2 days 49 49% 2-3 days 38 38% 3-4 days 3 3% More than 4 days 4 4%

49% respondents received the cheque receipt in 1 to 2 days. 38% respondents received the cheque receipt in 2 to 3 days. 3% respondents received the cheque receipt in 3 to 4 days. 4% respondents received the cheque receipt above 4 days.

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CHART 7: Time taken to receive the cheque receipt

3% 4% 1 - 2 days 2 - 3 days 3 - 4 days More than 4 days

40%

53%

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Table -8 Customers having Queries in Mutual Fund Clients still have doubts Respondents Percentage Yes 4 4% No 96 96%

96% respondents do not have any queries regarding mutual fund. only 4% of the respondents have queries.

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CHART 8: Customers having queries in mutual funds schemes

4% yes no 96%

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Table-9 Customer satisfaction level Satisfaction levels Respondent s Percentage Excellent 9 9% Good 87 87% Satisfactory Poor 4 4% 0 0% Very Poor 0 0%

9% of the respondents say the services are excellent. 87% respondents say the services are good. 4% respondents say the services are satisfactory. No customer is unsatisfied but their satisfaction level varies.

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CHART 9: Customer satisfaction level.

Cutomer satisfaction level

100 80 Satifaction levels 60 40 20 0

1

Excellent Good Satisfactory Poor Very Poor

Respondents

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Findings:
Only 25% of the Respondents have got information through advertisement. 20% of the Respondents felt that the knowledge level of the executives is Average and 3% of the Respondents felt that the knowledge level is below average. So, it can be reflected through uncomfortable service persued by the Respondents. 5% of the Respondents felt that the information sharing between them is less. It may hamper the confidence level of the investors. Because investors putting their savings in Mutual Funds which are risky. Customers felt that the processing time little delayed than the no delay. The time taken by the bank to send the redemption cheques to the customers is from 1 4 days. So, it is acceptable because of certain requirements have to be fulfilled by the bank before sending the cheques. Maximum respondents do not have any queries regarding mutual funds but still there is a few respondent who require the information, which can be related to the less information shared by the executives with investors which is only 5%.

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Recommendations:
From analysis it is clear companys advertisements are not effective to the fullest extent. Because more percentage of respondents are came to know about the KARVY through the executives that the advertisements. So, company can increase its customers base by concentrating more on advertisements because its reach more people than the executives. KARVY should think of advertising in large, to increase customers satisfaction level (post purchase). More than 20% of the respondents felt that knowledge of the executives is average. So, it may hamper the confidence and reputation. So, company can arrange for educational programmes to enhance their knowledge. The company can insist executives to share information fully with the customers. Since, some investors have queries regarding mutual funds, the company can solve this problem by sharing information fully and educating customers about Mutual Fund schemes. Regular touch with the customers. Many respondents are customer of KARVY for more then one service. So, for such customers, they should offer privileged services.

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