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We all know that the present system of education is based upon on the theme “LOADING
AND ULOADING! it means load the study material in your mind for e"am and for#et it as
you come out from the e"amination room$ %ut for fi#htin# the competition that is increasin#
day by day$ We do need to chan#e this trend and should try to come towards the practical
aspects& 'he country like (AAN$ )*INA$U&+&A&$ U&,& etc has made pro#ress only because
of practical knowled#e which they #et from different type of technical and mana#erial
institute and trainin# in different or#ani-ation &
'hat is why for #raduate student trainin# in different or#ani-ation of #reat help to them$ I also
#ot an opportunity to ha.e summer trainin# in ,A/01 +'O), %/O,ING L'D& I
underwent my trainin# in the 2inancial +er.ices& 3y 'opic for the study was “3U'UAL
I owe special debt of #ratitude to 3/& +AND44 AGGA/WAL %ranch *ead of ,A/01
AG/A& 'o allow me to underwent this summer trainin# in his or#ani-ation&
A work is never a work of individual I own a sense of gratitude to the intelligence and
cooperation of those person who had been so easy to let me understand what indeed time to
time for completion of this exclusive project I shall remain grateful to all possessing vast
knowledge in the field of management for his incisive and objective guidance of the entire
project and valuable suggestion made while reviewing the first draft of my project
'his pro5ect could not ha.e been completed without the support and dedicated efforts of 3r&
+andeep A#arwal 6%ranch *ead7 of ,ar.y +tock %rokin# Limited A#ra&
I feel that it would be an act of sacrile#e on my part not to recall with a sense of humility and
#ratitude for the opportunity #i.en by Dr& Anoop ant 6Director7 of (aipuria Institute of
3ana#ement& rof& +udhir De.a 6)hief lacement Officer7 8 rof& Ankur (ain 63ana#er
)orporate /elation7 of (aipuria Institute of 3ana#ement&
At last but not least I am thankful to my family members who ha.e been on our site also
pro.idin# us full cooperation support and moti.ation&
Ravi Shankar Singh
9& About ,ar.y
 *istory
 3ain
 )orporate hilosophy
 +trate#ies
 3ana#ement
:& ,ar.y 2inancial +er.ices
;& ,ar.y<s Achie.ments
=& ,ar.y Groups )ompanies&
>& About %ombay +tock 4"chan#e&
?& About National +tock 4"chan#e&
@& About +4%I&
A& About +econdary 3arket&
B& About A32I&
9C& of the study
99& /esearch 3ethodolo#y&
9:& ro5ect at a #lance&
 3utual 2unds an Introduction and )omparati.e Analysis with Different +chemes
• Introduction to 3utual 2und<s
• *istory of 3utual 2und<s
• Or#ani-ation Of 3utual 2und<s
• Operation Of 3utual 2und<s
• )lassification Of 3utual 2und<s
• %enefits Of 3utual 2und<s
• /isks Of 3utual 2und<s
• /e#ulatory Aspects Of 3utual 2und<s
• /ole Of 3utual 2und<s in 2inancial 3arket
• resent 3arket 'rend Of 3utual 2und<s
• 2uture Of 3utual 2und<s in India
• rofile of 3utual 2und<s Under +tudy&
9;& Analysis of ro5ect /eport
9=& 2reDuently Asked Euestion<s62AE<s7
9>& )omparati.e study of mutual funds .s other in.estment plan
9?& )onclusion
9@& %iblio#raphy
9A& Appendi"
KARVY FIndiaGs premier inte#rated financial ser.ices company with a wide network of >:>
offices 8 @;CC professionals operatin# from ;>: townsHcities and also established presence in
UA4$ U, 8 U+A& ,A/01$ is a premier inte#rated financial ser.ices pro.ider$ and ranked
amon# the top fi.e in the country in all its business se#ments$ ser.ices 9A million
indi.idual in.estors in .arious capacities$ and pro.ides in.estor ser.ices to =CC
corporate$ comprisin# the who is who of )orporate India& ,A/01 co.ers the entire spectrum
of financial senices such as +tock brokin#$ Depository articipants$ Distribution of financial
products Fmutual fundsI bonds$ fi"ed deposit$ eDuities$ Insurance %rokin#$ )ommodities
%rokin#$ ersonal 2inance Ad.isory +er.ices$ 3erchant %ankin# 8 )orporate 2inance$
placement of eDuity$ IOs$ amon# others& ,ar.y has a professional mana#ement team and
ranks amon# the best in technolo#y$ operations and research of .arious industrial se#ments&
'he birth of ,ar.y was on a modest scale in 9BA9& It be#an with the .ision and enterprise of a
small #roup of practicin# )hartered Accountants who founded the fla#ship company &&&,ar.y
)onsultants Limited& We started with consultin# and financial accountin# automation$ and
car.ed inroads into the field of re#istry and share accountin# by 9BA>& +ince then$ we ha.e
utili-ed our e"perience and superlati.e e"pertise to #o from stren#th to stren#th&&& to better
our ser.ices$ to pro.ide new ones$ to inno.ate$ di.ersify and in the process$ e.ol.ed ,ar.y as
one of IndiaGs premier inte#rated financial enterprise& 'hus the last :C years
,ar.y has tra.eled the success route$ towards buildin# a reputation as an inte#rated financial
ser.ices pro.ider$ offerin# a wide spectrum of ser.ices& And we ha.e made this 5ourney by
takin# the route of Duality$ path breakin# inno.ations in$ .ersatility in
and finally&&&totality in kar.yGs hi#hly Dualified manpower$ cuttin#Fed#e technolo#y$
comprehensi.e infrastructure and total customerFfocus has secured for us the position of an
emer#in# financial ser.ices #iant en5oyin# the confidence and support of an en.iable clientele
across di.erse fields in the financial world&
M!i" O#$e%tives
• %uild inFhouse processes that will ensure transparent and harmonious relationships with its
clients and in.estors to pro.ide hi#h Duality of ser.ices&
• 4stablish a partner relationship with its in.estor a#ents and .endors that will help in
keepin# up its commitments to the customers&
• ro.ide hi#h Duality of work life for all its employees and eDuip them with adeDuate
knowled#e 8 skills so as to respond to customerGs needs&
• )ontinue to uphold the .alues of honesty 8 inte#rity and stri.e to establish unparalleled
standards in business ethics&
• Use stateFofFthe art information technolo#y in de.elopin# new and inno.ati.e financial
products and ser.ices to meet the chan#in# needs of in.estors and clients&
• +tri.e to be a reliable source of .alueFadded financial products and ser.ices and constantly
#uide the indi.iduals and institutions in makin# a 5udicious choice of it&
• +tri.e to keep all stakeFholders 6shareholders$ clients$ in.estors$ employees$ suppliers and
re#ulatory authorities7 proud and satisfied&
,ar.y as an or#ani-ation has bein# built the principal of professionalism$ ethics and financial
e"pertise& It is kar.y belief that its e"istence and de.elopment are closely interlinked with its
ability to ser.e both retail and corporate client well& the year this belief has e.ol.ed in
to its corporate philosophy of #rowth$ inno.ation and stability& rofitable #rowth is a key
aspect of kar.y philosophy& ,ar.y has di.ersified in to a wide ran#e of financial ser.ices and
alon# with its subsidiaries aims to pro.ide the benefit of uni.ersal to its corporate and
retail clients and its in.estor&
,ar.y constantly endea.or to create products that best meet the specified needs of its clients
and in.estors&
In addition kar.y also seeks to these products effecti.ely& It therefore$ sets for itself
hi#h standards of ser.ices and consultancy ser.ices to impro.e upon them& 'he #oal
is to ensure that dealin# with kar.y is safe$ simple and efficient&
,ar.y .alues the trust that has been reposed in its financial e"pertise$ both by its clients and
its in.estor& In all of kar.y ser.ices offerin# safety of in.estment is of paramount importance&
'herefore kar.y attempts to pursue #rowth and inno.ation without compromisin# on its
'he liberali-ation and #rowth of the Indian economy pro.ides kar.y with si#nificant
opportunities to pro.ide superior financial products and to the corporate and the retail
sector& ,ar.y ob5ecti.e is to enhance its position as IndiaGs premier financial pro.ider&
'he key elements of kar.y business strate#ies areJ F
• 2ocus on Duality #rowth opportunity byJ F
o%uildin# a stron# retail franchiseI
o 3aintainin# and enhancin# stren#th in coFworldI
• 4mphasi-e conser.ati.e risk mana#ement practices and enhanced asset DualityI
• Use technolo#y for competiti.e ad.anta#eI
• Attract and retain talented professionalsI
G Go'!(! Kris)"!" A%)r*(*
V G!"es)
M & M!"o)!r
T R Pr!s)!"t K*-!r
As)o. K Mitt!(
Air Co--o+ore /Ret+0 R R!1)*r!-2 V&M
C*sto-er &*''ort 3-!i(-!"!1er4.!rv5%o-
OnFline facilities related to depository ser.ices 6N+DL8)+DL7 includin# Demat account
openin#$ Demateriali-ation of physical shares$ DI+ e"ecution$ holdin#Htransaction statement$
led#e$ /emat etc are a.ailable&
1ou can a.ail onFline tradin# facility 6on our terminals7 for all se#ments$ N+4F)A+*$ N+4F
D4/I0A'I04+ 628O7$ %+4 and retail debt market 6/D37$ at all our branches& We offer
ser.ices that are beyond 5ust a medium for buyin# and sellin# stocks and shares& Instead we
pro.ide ser.ices$ which are multidimensional and multiFfocused in their scope& 'here are
se.eral ad.anta#es in utili-in# our stock brakin# ser.ices$ which are the reason why we are
one of the best 8 the lar#est in the country7G& We also offer web tradin#&
1ou ha.e access to e.ery financial H in.estment product a.ailable in the market at our offices
.i-& 3utual 2unds$ ublic issue H %ookFbuildin# offers$ 2i"ed deposits$ /%IH)apital #ains 8
ta" bonds etc&
,ar.y are offerin# throu#h 3)K 8 N)D4K$ spectacular #rowth opportunities and
ad.anta#es to a lar#e cross section of market participants includin# producerHprocessors$
traders$ corporate$ re#ional tradin# centers$ importers$ e"porters$$ in.estors$
industry associations to trade in .arious commodities$ be it bullion$ food #rains$ oils$ other
a#ricultural products etc&
,ar.y are authori-ed by N+DL to accept and process your application for AN card H 'AN
number and for filin# of eF 'D+ returns&
At kar.y we pro.ide research based 2inancial Ad.isory ser.ices to our clients to suit their
in.estment needs H reDuirements& We ha.e a stron# financial and technical backin# of )G
#roup of *on# ,on#& We also ha.e a hi#hly Dualified and professional team& At kar.y$ we
belie.e in L)ustomer Deli#htL rather than customer satisfaction&
,ar.y #roup is synonymous with the field of /e#istrar and transfer a#ents and is the /8'
a#ent for almost all the bi# corporate in the country and for public issue& We ha.e tra.eled
wide space to tie up with the worldGs lar#est transfer a#ents$ )omputershare Limited$ the
leadin# Australian company& 'he company more than @> million shareholders across
@CCC corporate clients and made its presence felt in 9: countries across > continents
has entered in to a >CF>C 5oint .enture with us&
1ou are ser.iced by ,ar.y on behalf of its .alued mutual fund clients 6&oM3)s7 like /eliance$
2ranklin 'empleton$ rincipal$ 93$ LI)$ U'I$ GI)$ %ank of %aroda$ 'ata$ 'auras$ Deutsche
,A/01$ actin# as an Insurance %roker for .arious U24 and G4N4/AL insurance
companies$ is in a better position to su##est you an insurance product suitin# best to your
needs& With the openin# up of the insurance sector and with a lar#e number of pri.ate players
in the business$ we pro.ide tailorFmade policies for different se#ments of customers& With a
wide network of branches and a research based professional team$ we are in a position to our clients in the best possible way$ in the lon# run&
 Amon# the top > stock brokers in India 6= N of N+4 .olumes7
 IndiaGs No&9 /e#istrar 8 +ecurities 'ransfer A#ents
 Amon# the top ; Depository articipants
 Lar#est Network of %ranches 8 %usiness Associates
 I+O BCC: certified operations by DN0
 Amon# top 9C In.estment bankers
 Lar#est Distributor of 2inancial roducts
 Ad5ud#ed as one of the top >C I' uses in India by 3I+ Asia
 2ully 2led#ed I' dri.en operations
'o achie.e and retain leadership$ ,ar.y shall aim for complete customer satisfaction$ by
combinin# its human and technolo#ical resources$ to pro.ide superior Duality financial
ser.ices& In the process$ ,ar.y will stri.e to e"ceed )ustomerGs e"pectations&
• ,ar.y +tock %rokin# Limited&
• ,ar.y )onsultants Limited&
• ,ar.y In.estors +er.ices Limited&
• ,ar.y )omputer share .t& Limited&
• ,ar.y Global +er.ices Limited&
• ,ar.y )O3 trade Limited&
• ,ar.y Insurance %rokin# ri.ate Limited&
It is an undisputed fact that the stock market is unpredictable and yet en5oys a hi#h success
rate as a wealth mana#ement and wealth accumulation option& 'he difference between
unpredictability and a safety anchor in the market is pro.ided by inFdepth knowled#e of
market functionin# and chan#in# trends$ plannin# with foresi#ht and choosin# one 8 rsDuoIs
options with care& 'his is what we pro.ide in our +tock %rokin# ser.ices& Woe offer ser.ices
that are beyond 5ust a medium for buyin# and sellin# stocks and shares& Instead we pro.ide
ser.ices which are multi dimensional and multiFfocused in their scope& 'here are se.eral
ad.anta#es in utili-in# our +tock %rokin# ser.ices$ which are the reasons why it is one of the
best in the country& We offer tradin# on a .ast platformI National +tock 4"chan#e$ %ombay
+tock 4"chan#e and *yderabad +tock 4"chan#e& 3ore importantly$ we make tradin# safe to
the ma"imum possible e"tent$ by accountin# for se.eral risk factors and plannin#
accordin#ly& We are assisted in this task by our inFdepth research$ constant feedback and
sound ad.isory facilities& Our hi#hly skilled research team$ comprisin# of technical analysts
as well as fundamental specialists$ secure resultForiented information on market trends$
market analysis and market predictions&
,ar.y +tock %rokin# ser.ices are widely networked across India$ with the number of our
tradin# terminals pro.idin# retail stock brokin# facilities& Our ser.ices ha.e increasin#ly
offered customer oriented con.enience$ which we pro.ide to a spectrum of in.estors$ hi#hF
net worth or otherwise$ with eDual dedication and competence&
As the fla#ship company of the ,ar.y Group$ ,ar.y )onsultants Limited has always
remained at the helm of or#ani-ational affairs$ pioneerin# business policies$ work ethic and
channels of pro#ress& * emer#ed as a leader in the re#istry business$ the first of the
businesses that we .entured into$ we ha.e now transferred this business into a 5oint .enture
with )omputers hare Limited of Australia$ the worldGs lar#est re#istrar& With the ad.ent of
depositories in the Indian capital market and the relationships that we ha.e created in the
re#istry business$ we belie.e that we were best positioned to .enture into this acti.ity as a
Depository articipant& We were one of the early entrants re#istered as Depository articipant
with N+DL 6National +ecurities Depository Limited7$ the first Depository in the country and
then with )D+L 6)entral Depository +er.ices Limited7& 'oday$ we ?lakhs
customer accounts in this business spread across :>C citiesHtowns in India and are
ranked amon#st the lar#est Depository articipants in the country& With a #rowin# secondaryG
market presence$ we ha.e transferred this business to ,ar.y +tock %rokin# Limited 6,+%L7$
our associate and a member of N+4$ %+4 and *+4&
/eco#ni-ed as a leadin# merchant banker in the country$ we are re#istered with +4%I as a
)ate#ory I merchant banker& 'his reputation was built by capitali-in# on opportunities in
corporate consolidations$ mer#ers and acDuisitions and corporate restructurin#$ which ha.e
earned us the reputation of a merchant banker& /aisin# resources for corporate or
Go.ernment Undertakin# successfully the past two decades ha.e #i.en us the
confidence to renew our focus in this sector&
We ha.e tra.ersed wide spaces to tie up with the worldGs lar#est transfer a#ent$ the leadin#
Australian company$ and )omputer share limited& 'he company that ser.ices more than @>
million shareholders across @CCC corporate clients and makes its presence felt in 9:
countries across > continents has entered into a >CF>C 5oint .enture with us&
'he specialist %usiness rocess Outsourcin# unit of the ,ar.y Group& 'he le#acy of e"pertise
and e"perience in financial ser.ices of the ,ar.y Group us well as we enter the #lobal
arena with the confidence of bein# able to and well&
At ,ar.y )ommodities$ we are focused on takin# commodities tradin# to new dimensions of
reliability and profitability& We ha.e made commodities tradin#$ an essentially a#eFold
practice$ into a sophisticated and scientific in.estment option& *ere we enable trade in all
#oods and products of a#ricultural and mineral ori#in that include lucrati.e commodities like
#old and and popular items like oil$ pulses and cotton throu#h a wellFsystemati-ed
tradin# platform&
At ,ar.y Insurance %rokin# .t& Ltd&$ we pro.ide both life and nonFlife insurance products
to retail indi.iduals$ hi#h netFworth clients and corporate& With the openin# up of the
insurance sector and with a lar#e number of pri.ate players in the business$ we are in a
position to pro.ide tailor made policies for different se#ments of customers& In our 5ourney to
emer#e as a personal finance ad.isor$ we will be better positioned to le.era#e our
relationships with the product pro.iders and place the reDuirements of our customers
appropriately with the product pro.iders&
%ombay +tock 4"chan#e Limited is the oldest stock e"chan#e in Asia with a rich herita#e&
opularly known as L%+4L$ it was established as L'he Nati.e +hare 8 +tock %rokers
AssociationL in 9A@>& It is the first stock e"chan#e in the country to obtain permanent
reco#nition in 9B>? from the Go.ernment of India under the +ecurities )ontracts
6/e#ulation7 Act$ 9B>?&& 'he 4"chan#eGs pi.otal and preFeminent role in the de.elopment of
the Indian capital market is widely reco#ni-ed and its inde"$ +4N+4K$ is tracked worldwide&
4arlier an Association of ersons 6AO7$ the 4"chan#e is now a deFmutuali-ed and
corporati.e entity incorporated under the pro.isions of the )ompanies
Act$ 9B>?$ pursuant to the %+4 6)orporatisation and Demutuali-ation7 +cheme$ :CC> notified
by the +ecurities and 4"chan#e %oard of India 6+4%I7&
With demutuali-ation$ the tradin# ri#hts and ownership ri#hts ha.e been deFlinked
Geffecti.ely addressin# concerns re#ardin# percei.ed and real conflicts of interest& 'he
4"chan#e is professionally mana#ed under the o.erall direction of the %oard of Directors&
'he %oard comprises eminent professionals$ of 'radin# 3embers and the
3ana#in# Director of the 4"chan#e& 'he %oard is inclusi.e and is desi#ned to benefit from
the participation of market intermediaries&
In terms of or#ani-ation structure$ the %oard formulates lar#er policy issues and e"ercises
o.erFall control& 'he committees constituted by the %oard are broadFbased& 'he dayFtoF day
operations of the 4"chan#e are mana#ed by the 3ana#in# Director and a mana#ement team
of professionals&
'he 4"chan#e has a nationFwide reach with a presence in =9@ cities and towns of India& 'he
systems and processes of the 4"chan#e are desi#ned to safe#uard market inte#rity and
enhance transparency in operations& Durin# the year :CC=F:CC>$ the tradin# .olumes on the
4"chan#e showed robust #rowth&
'he 4"chan#e pro.ides an efficient and transparent market for tradin# in eDuity$ debt
instruments and 'he %+4Gs On Line 'radin# +ystem 6%OL'7 is a proprietary
system of the 4"chan#e and is %+ @@BBF:F:CC: certified& 'he sur.eillance and clearin# 8
settlement functions of the 4"chan#e are I+O BCC9J:CCC certified&
'he National +tock 4"chan#e of India Limited has #enesis in the report of the *i#h owered
+tudy Group on 4stablishment of New +tock 4"chan#es$ which recommended promotion of
a National +tock 4"chan#e by financial institutions 62Is7 to pro.ide access to in.estors from
all across the country on an eDual footin#& %ased on the recommendations$ N+4 was
promoted by leadin# 2inancial Institutions at the behest of the Go.ernment of India and was
incorporated in No.ember 9BB: as a ta"Fpayin# company unlike other stock e"chan#es in the
On its reco#nition as a stock e"chan#e under the +ecurities )ontracts 6/e#ulation7 Act$ 9B>?
in April 9BB;$ N+4 commenced operations in the Wholesale Debt 3arket 6WD37 se#ment
in (une 9BB=& 'he )apital 3arket 64Duities7 se#ment commenced operations in No.ember
9BB= and operations in se#ment commenced in (une :CCC&
N+4Gs mission is settin# the a#enda for chan#e in the securities markets in India& 'he N+4
was setFup with the main ofJ
• establishin# a nationFwide tradin# facility for eDuities$ debt instruments and hybrids$
• ensurin# eDual access to in.estors all the country throu#h an appropriate
communication network$
• pro.idin# a fair$ efficient and transparent securities market to in.estors usin# electronic
tradin# systems$
• enablin# shorter settlement cycles and book entry settlements systems$ and
• 3eetin# the current international standards of securities markets&
'he standards set by N+4 in terms of market practices and technolo#y ha.e become industry
benchmarks and are bein# emulated by other market participants& N+4 is more than a mere
market facilitator& ItGs that force which is #uidin# the industry towards new hori-ons and
#reater opportunities&
N+4 has been promoted by leadin# financial institutions$ banks$ insurance companies and
other financial intermediariesJ
 Industrial De.elopment %ank of India Limited
 Industrial 2inance )orporation of India Limited
 Life Insurance )orporation of India
 +tate %ank of India
 I)I)I %ank Limited
 IL 8 2+ 'rust )ompany Limited
 +tock *oldin# )orporation of India Limited
 +%I )apital 3arkets Limited
 %ank of %aroda
 )anara %ank
 General Insurance )orporation of India
 National Insurance )ompany Limited
 'he New India Assurance )ompany Limited
 'he Oriental Insurance )ompany Limited
 United India Insurance )ompany Limited
 un5ab National %ank
 Oriental %ank of )ommerce
 )orporation %ank
 Indian %ank
 Union %ank of India
 Infrastructure De.elopment 2inance )ompany Ltd&
N+4 is one of the first deFmutualised stock e"chan#es in the country$ where the ownership
and mana#ement of the 4"chan#e is completely di.orced from the ri#ht to trade on it&
'hou#h the impetus for its establishment came from policy makers in the country$ it has
been set up as a public limited company$ owned by the leadin# institutional in.estors in the
2rom day one$ N+4 has adopted the form of a demutualised e"chan#e F the ownership$
mana#ement and tradin# is in the hands of three different sets of people& N+4 is owned by a
set of leadin# financial institutions$ banks$ insurance companies and other financial
intermediaries and is mana#ed by professionals$ who do not directly or indirectly trade on
the 4"chan#e& 'his has completely eliminated any conflict of interest and helped N+4 in
a##ressi.ely pursuin# policies and practices within a public interest framework&
'he N+4 model$ does not preclude$ but in fact accommodates in.ol.ement$
support and contribution of tradin# members in a .ariety of ways& Its %oard comprises of
senior e" from promoter institutions$ eminent professionals in the fields of law$
economics$ accountancy$ finance$ ta"ation$ etc$ public$ nominees of +4%I
and one full time e"ecuti.e of the 4"chan#e&
'he +ecurities and 4"chan#e board of India 6+4%I7 has been mandated to protect interest of
in.estors in securities and to promote the de.elopment and to re#ulate the securities market
so as to establish a dynamic and efficient securities market contributin# to Indian economy&
+4%I stron#ly that In.estors are the backbone of the securities market& 'hey not
only determine the le.el of acti.ity in the securities market but also the le.el of acti.ity in the
*$ many in.estors may not posses< adeDuate e"pertiseHknowled#e to take informed
in.estment decisions& +ome of them may not be aware of the capital riskFreturn profile of the
different in.estment options& +ome in.estors may not be fully aware of the precaution they
should take while dealin# with market intermediaries and dealin# in different securities& 'hey
may not be familiar with the market mechanism and the practices as well as their ri#ht and
In this backdrop$ +4%I launched a comprehensi.e education campai#n aimed at creatin#
awareness amon# in.estors about securities market$ which has been christenedF“+ecurities
market awareness campai#n! 6+3A)7& 'he 3otto of the campai#n is O PAn educated
in.estor is a protected in.estor<&
'he campai#n was launched at the national le.el by the then rime 3inister$ +hri Atal %ihari
0a5payee$ on (anuary 9@$ :CC;&
'he national launched was closely followed by launch in 9: states&
'he structural foundation of campai#n is based on workshops that are bein# conducted all
across the country with the continued and acti.e participation of market& articipants$ market
intermediaries$ in.estors association<s etc& to spread +4%I<s messa#e of “in.est with
+econdary 3arket refers to a market where securities are traded after bein# initially offered
to the public in the primary market andHor listed on the +tock 4"chan#e& 3a5ority of the
tradin# is done in the secondary market& +econdary market comprises of eDuity markets and
the debt markets&

2or the #eneral in.estor$ the secondary market pro.ides an efficient platform for tradin# of
his securities& 2or the mana#ement of the company$ +econdary eDuity markets ser.e as a
monitorin# and control conduitQby facilitatin# .alueFenhancin# control acti.ities$ enablin#
implementation of incenti.eFbased mana#ement contracts$ and a##re#atin# information 6.ia
price disco.ery7 that #uides mana#ement decisions
 Trade Verificati! Md"#e
We are pleased to pro.ide our in.estors with a facility to .erify trades on the N+4 website&
Usin# this facility$ an in.estor who has recei.ed a contract note from a tradin# member of the
4"chan#e$ can check whether the trade has been e"ecuted on the 4"chan#e&
'his facility is a.ailable on the N+4 website for the )apital 3arket$ 628O7 and
/etail Debt 3arket se#ments of the 4"chan#e&
 Li$ti!%
Listin# means admission of securities of an issuer to tradin# pri.ile#es on a stock e"chan#e
throu#h a formal a#reement& 'he prime ob5ecti.e of admission to dealin#s on the 4"chan#e is
to pro.ide liDuidity and marketability to securities$ as also to pro.ide a mechanism for
effecti.e mana#ement of tradin#&
Listin# on N+4 pro.ides Dualifyin# companies with the broadest access to in.estors$ the
#reatest market depth and liDuidity$ costFeffecti.e access to capital$ the hi#hest .isibility$ the
fairest pricin#$ and in.estor benefits& N+4 tradin# terminals are now situated in .arious cities
and towns across the len#th and breadth of India&
+ecurities listed on the 4"chan#e are reDuired to fulfill the eli#ibility criteria for listin#&
0arious types of securities of a company are traded under a uniDue symbol and different
 Tradi!%
N+4 introduced for the first time in India$ fully automated screen based tradin#& It uses a
modern$ fully computeri-ed tradin# system desi#ned to offer in.estors across the len#th and
breadth of the country a safe and easy way to in.est&
'he N+4 tradin# system called GNational 4"chan#e for Automated 'radin#G 6N4A'7 is a fully
automated screen based tradin# system$ which adopts the principle of an order dri.en market&
A32I is the umbrella body of all mutual funds includin# Unit 'rust of India& Incorporated in
au#ust 9BB>$ it is a nonFprofit or#ani-ation committed to de.elop the Indian mutual fund
industry on professional healthy and ethical lines and to enhance and maintain standards in all
areas with a .iew to protectin# and promotin# the interests of mutual funds and their unit
holders& 3utual fund both conceptually and operationally is different from other
instruments& 3utual fund in.ests in instruments of capital markets which ha.e different risk
return profile& It is .ery necessary that the in.estors understand properly the conceptual
framework of mutual fund and its operational features& A32I therefore thou#ht it appropriate
to produce a booklet in the form of an in.estor<s concise and workin# of mutual funds&
'his #uide on the concept$ operations and ad.anta#es of mutual fund and the ri#hts of mutual
fund unit holder is intended purely as a #uide and does not solicit in.estment in any specific
mutual fund& It is not a le#al or re#ulatory document& It is recommended that you read the
rele.ant offer document and if necessary$ consult your in.estment ad.isor before makin# an
in.estment decision&
 rimary
• 'o #et acDuainted with different aspects and framework of different
in.estment companies 63utual 2und<s7 of India&
 +econdary
• 'o ,now 0arious 'ypes of 3utual 2und<s&
• 'o +tudy the /ole of 3utual 2und<s In 2inancial 3arket&
• 'o know about the /e#ulatory Aspects O 3utual 2und<s&
• 'o +tudy the )urrent 'rend of 'he 3utual 2und<s 8 the 2uture 'here of&
• 'o Understand 8 )ompare Different 3utual 2und<s&
'he methodolo#y of the entire research and sur.ey work was defined at an early sta#e so that
there was minimum wasta#e of ener#y material and money&
In the process of the research and sur.ey the entire schedule of work was decided into
thirteen steps as followsJ F
9&Definin# the ob5ecti.e&
:&Definin# the population&
;&2rame the samplin# units
=&Data to be collected
>&/esearch Desi#n
?&3ethods of collectin# information
@&/esearch Approach
A&/esearch 'ool
B&+election of proper samplin# desi#n
9C& Or#ani-ation of fieldwork
99& 4"ecution of the research report
9:& +ummary8 analysis
9;& reparation of the report
It is the first step in the research and also is .ery crucial area of the research& 'he ob5ecti.e of
this research is to increase the market share of mutual funds as compare to others in.estment
opulation refers to the total of items about which information is deserted& 'he attributes that
are the ob5ecti.e of study are referred to as characteristics and the units possessin# them are
called as elementary units& 'he a##re#ate of such units is #enerally described as population&
'hus all units in any field of inDuiry constitute uni.erse and all elementary units constitute
'he elementary units or cluster of such units may form the basis of samplin# process in
which case they are called as samplin# unitsF a list containin# all such samplin# units is
known as samplin# frame& 'hus samplin# frame consists of a list of items frame$ which the
sample is to be drawn& It is often impossible to draw a sample directly from population& the frame may be it should be a #ood representati.e of the population& *ere in case
of this research$ I simply located areas and conducted a sur.ey by takin# the information in
form of Duestionnaire& +o while conductin# this research ,A/01 +'O,ING %/O,ING
L'D& was taken and the sur.ey is done in AG/A city&
It becomes necessary to collect data that are appropriate& 'here are se.eral ways of collectin#
the appropriate data$ which differ considerably in conte"t of money cost time and other
A research desi#n is the arran#ement of conditions for collection and analysis of data in a
manner that aims to combine rele.ance to the research purpose with economy in procedure&
'o de.elop and effecti.e Duestionnaire followin# points should be taken into consideration&
9& It must keep in .iew the problem he is to study for it pro.ides the startin# point for
de.elopin# the Duestionnaire& *e must be clear about the .arious aspects of his research
problem to be dealt with in the course of his research report&
:& 'he researcher must decide whether to use closed or openFended Duestions& Euestions
should be simple and must be constructed with a .iew to their formin# a lo#ical part of a
well thou#ht tabulation plan
;& /ou#h draft of the Duestionnaire be prepared$ due thou#ht to the appropriate
seDuence of puttin# Duestions&
=& ilot study should be undertaken for preFtestin# the Duestionnaire& 'he Duestionnaire
may be edited in the li#ht of the results of the pilot study&
>& Euestionnaire must contain simple but strai#htforward directions for the respondents
so that they may not feel any difficulty in answerin# the Duestions&
'he task of data collections be#ins after a research problem has been defined and research
desi#nHplan chalked out& 'here are two methods of data collection&
• rimary data
• +econdary data
'he 'ri(ar) data are those$ which are collected afresh and for the first time for specific
purpose$ and thus happen to be ori#inal in character& On the other hand$ the secondary data
are those$ which ha.e already been collected by someone else for other purpose and which
ha.e already been passed throu#h the statistical process& rimary data are collected directly
from the field$ but secondary data are collected from the 5ournals$ newspapers$ periodicals$
books reports of Go.t&I and also from research papers etc& collection of primary data is cost
and time consumin#$ but in case of secondary data$ it is less time and cost consumin#&
%ut in this research we collected primary data throu#h direct communication with
respondents in the form of Duestionnaire&
Sec!dar) data is collected from websites business ma#a-ines 5ournals and company
literature etc&
'he approach adopted for this research was to conduct a sur.ey in the market of AG/A
co.erin# retailers and distributors and the Duestions were framed in such a manner that they
can #i.e a deep insi#ht into the customer<s habits preferences and likin#s for completin# the
Duestionnaires .arious customers and retailers were approached to&
'he main instrument$ which was used in the research$ was Duestionnaire and it was$ like the
Duestionnaire was started with openFended Duestions so that the respondents #et a feel of the
whole Duestionnaire and then Duestions slowly mo.e on to the closeFended Duestions&
A sample desi#n is a sample desi#n for this study i&e& plans how a sample should be selected
and what si-e such a sample would be& *ere is this case definite plan for obtainin# a sample
from a #i.en population& We must prepare the sample si-e is of 9:C #eneral public in A#ra
2ieldwork was done in this research indi.idually with no biasness& 'he fieldwork comprises
of fillin# of Duestionnaires by different people& )ollectin# as much information as it is needed
to conduct a successful sur.ey on #eneral public& I ha.e done all areas of AG/A city$ like
+an5ay lace$ +adar %a-ar$ /a5pur )hun#i$ ,amla Na#ar$ +hah Gan5$,heria etc&
4"ecution of the pro5ect is a .ery important step in the research process& If the e"ecution of
the pro5ect proceeds on correct lines$ the data to be collected would be adeDuate and
dependable& 'he researcher should see that the pro5ect is e"ecuted in a systematic manner and
in time& If the sur.ey is to be conducted by means of structured Duestionnaires$ data can be
readily machineFprocessed& In such a situation$ Duestions as well as the possible answers may
be coded& If some of the respondents do not cooperate$ some suitable methods should be
desi#ned to tackle this problem& One method of dealin# with the no response problem is to
make a list of the nonFrespondents and take a small subFsample of them$ and then with the
help of e"perts .i#orous efforts can be made for securin# response&
After the data ha.e been collected$ it must analy-e them to #et the needed information& 'he
analysis of data reDuires a number of closely related operations$ which are as establishment of
cate#ories$ the application of these cate#ories to raw data throu#h codin#$ tabulation and then
drawin# statistical inferences
Analysis work is #enerally base on the computations of .arious percenta#es$ coefficients$ etc$
by applyin# .arious wellFdefined statistical formulae& In process of analysis$ relationships
should be sub5ected to test of si#nificance to determine with what .alidity data can be said to
indicate any conclusions& In this research after analy-in# the data we find the leadin# brand in
air conditioners and also find the sales percenta#e of .arious brands of air conditioners in the
2inally the preparation of the report has to be done accordin# to work done& Writin# of report
must be done with #reat care keepin# in .iew the followin#F
9& 'he layout
:& /eport should be written in concise and ob5ecti.e style in simple lan#ua#e
;& )harts and illustrations in the main report should be used only if they present the
information more clearly and forcibly&
=& )alculated confidence limits must be mentioned and the .arious constraints
e"perienced in concludin# research operations may as well be staled&
The above research report was formulated as under-
/esearch J Descripti.e
Data +ource J rimary 8 +econdary
/esearch Instrument J Euestionnaire
'ype of Euestionnaire J OpenH)lose both
+amplin# +i-e J 9:C )lients
+amplin# rocedure J +imple /andom +amplin#
I conducted the sur.ey on mutual funds .s& other in.estment option in AG/A market on
behalf of KARVY STOCK BROKING LIMITED. I prepared a Duestionnaire$ which helped
me to collect the necessary data for this sur.ey& In my sur.ey I inter.iewed 9:C indi.idual
belon#in# to di.ersified profession& 'he data I collected was in crude form$ to e"tract the
information from that data I analy-ed the data and make some tables and bar charts&

M*t*!( F*"+s A" I"tro+*%tio" A"+ Co-'!r!tive A"!(sis
Wit) Di88ere"t &%)e-es
It is said$ “Necessity is the mother of in.ention!& Inno.ation has been always the spirit of
human nature& In the financial sector also$ se.eral new instruments had been inno.ated in
tune with the market needs& 'he constraints of banks to pro.ide #rowth with market yields for
the in.estor<s section of society has already #i.en birth to one more new institution the
3utual 2und&
'herefore$ emer#ence of 3utual 2unds in the Indian scene is a product of necessity& 'he
constraints on the bankin# sector to tap the fruits of the capital market and the reluctance of
the in.estors to take a direct plun#e in comple" and erratic capital market operation reDuired
an intermediary& 3utual 2und fills this #ap admirably&
'he word mutual denotes somethin# to be done collecti.ely by a #roup of people with the
common ob5ecti.e mutual faith and understandin# amon# them& 'he other part of the
word$ i&e& fund is used in monetary terms$ to collect some money from the members of the
3utual 2und for a common ob5ecti.e of all the members of the #roup& *ere the common
ob5ecti.e of the members of 3utual 2und can be well #uessed as earnin# the profits from a
hu#e collecti.e fund with a 5oint effort&
3utual 2und has been defined as “it is a nonFdepository or nonFbankin# financial
intermediary which acts as important .ehicle for brin#in# wealth holders and deficit units
to#ether indirectly!&
Accordin# to Dr& 0inayakam$ N& a 3utual 2und is an indirect in.estment made by the public
by poolin# in sources& 'he fund per se comprises eDual unitsH sharesH certificates and the
public in.ests its in them dependin# on the Duantum of resources a.ailable with the
indi.iduals& 'he fund uses these for in.estment in eDuity shares and debentures of
.arious companies& 'he resultin# earnin#s are distributed amon# the fund owners& 3utual
2unds perform$ as per their portfolio$ and better the portfolio mana#ement$ it will #i.e better
A 3utual 2und is a sin#leI lar#e professionally mana#ed in.estment or#ani-ation that
combines the funds of many indi.idual in.estors similar in.estment In
rapidly chan#in# stock markets$ it is essential to respond positi.ely and Duickly to e.ents$
which tend to mo.e share prices& 'he search for ma"imum returns has to be balanced a#ainst
the need to control risk& A 3utual 2und is able to reduce such risk associated with
in.estments by in.estment in a lar#e number of companies across different industries& An
indi.idual in.estor with limited financial resources may be unable to do so& 'he #uidin#
factor behind in.estment decisions of a 3utual 2und is the fundamental stren#th of a share
determined by the o.erall economic situation& 'he research dept& is the backbone of a 3utual
2und$ which de.ises in.estment strate#ies based upon market knowled#e$ e"perience and the
A 3utual 2und is a pool of coFmin#led funds in.ested by different in.estors& 3ost 3utual
2und in.estors do not know each other and ha.e contact with each other& 'he
in.estment mana#ement of such a pool of funds is usually performed by a professional
money mana#ement firm for a fee of say 9N of the market .alue of all the assets mana#ed
each year& +uch mana#ers in.est the funds in a di.ersified portfolio of securities they
research and analy-e and e"pect to perform well& 'he owners of shares in 3utual 2unds may
either in.est more money or withdraw their money at time from the 3utual 2und scheme&
A 3utual 2und is a trust that pools the of a number of in.estors who share a
common financial #oal& 'he money thus collected is then in.ested in capital market
instruments such as shares$ debentures and other securities& 'he income earned throu#h these
in.estments and the capital appreciation realised are shared by its unit holders in proportion
to the number of units owned by them& 'hus a 3utual 2und is the most suitable in.estment
for the common man as it offers an opportunity to in.est in a di.ersified$ professionally
mana#ed basket of securities at a relati.ely low cost&
'here are four basic types of mutual fundsJ +tock 6or eDuity7 funds$ bonds and income funds$
hybrid funds and money market funds& 3oney market funds are referred to as short term
funds$ because they in.est in securities that #enerally mature in about one year or less& +tock
funds and bonds and income funds$ on the other hand$ are known as lon# term funds& 'he
dia#ram bellows shows the ercenta#e distribution of all the funds&
)lassification of 3utual 2unds on the ercenta#e %asisJF
 +tock 2unds =B&BN
 3oney 3arket 2unds :@&@N
 %onds 2unds 9?&@N
 *ybrid 2unds >&AN
Stock Funds Money Market Funds
Bonds Funds Hybrid unds
/9:;< 3 =>>?0
'he end of millennium marks ;? years of e"istence of 3utual 2unds in this country& 'he ride
throu#h these ;? years is not been smooth& In.estor opinion is still di.ided& While some are
for 3utual 2unds others are a#ainst it&
 Fir$t P-a$e . /012345
An Act of arliament established Unit 'rust of India 6U'I7 on 9B?;& It was set up by the
/eser.e %ank of India and functioned under the /e#ulatory and administrati.e control
of the /eser.e %ank of India& In 9B@A U'I was deFlinked from the /%I and the
Industrial De.elopment %ank of India 6ID%I7 took the re#ulatory and
administrati.e control in place of /%I& 'he first scheme launched by U'I was Unit
+cheme 9B?=& At the end of 9BAA U'I had /s&?$@CC crores of assets under
 Sec!d P-a$e . /0453/006 7E!tr) f P"8#ic Sectr F"!d$9
9BA@ marked the entry of nonF U'I$ public sector 3utual 2unds set up by public sector banks
and Life Insurance )orporation of India 6LI)7 and General Insurance )orporation of India
6GI)7& +%I 3utual 2und was the first nonF U'I 3utual 2und established in (une 9BA@
followed by )an bank 3utual 2und 6Dec A@7$ un5ab National %ank 3utual 2und 6Au# AB7$
Indian %ank 3utual 2und
6No. AB7$ %ank of India 6(un BC7$ %ank of %aroda 3utual 2und 6Oct B:7& LI) established its
3utual 2und in (une 9BAB while GI) had set up its 3utual 2und in December 9BBC&
At the end of 9BB;$ the 3utual 2und industry had assets under mana#ement of /s&=@$CC=
 T-ird P-a$e . /0063:;;6 7E!tr) f Pri<ate Sectr F"!d$)
With the entry of pri.ate sector funds in 9BB;$ a new era started in the Indian 3utual 2und
industry$ the Indian in.estors a wider choice of fund families& Also$ 9BB; was the year
in which the first 3utual 2und /e#ulations came into bein#$ under which all 3utual 2unds$
e"cept U'I were to be re#istered and #o.erned& 'he 4rstwhile ,othari ioneer 6now mer#ed
with 2ranklin 'empleton7 was the first pri.ate sector 3utual 2und re#istered in (uly 9BB;&
'he 9BB; +4%I 63utual 2und7 /e#ulations were substituted by a more comprehensi.e and
re.ised 3utual 2und /e#ulations in 9BB?& 'he industry now functions under the +4%I
63utual 2und7 /e#ulations 9BB?&
'he number of 3utual 2und houses went on increasin#$ with many forei#n 3utual 2unds
settin# up funds in India and also the industry has witnessed se.eral mer#ers and acDuisitions&
As at the end of (anuary :CC;$ there were ;; 3utual 2unds with total assets of /s& 9$:9$AC>
crores& 'he Unit 'rust of India with /s&==$>=9 crores of assets under mana#ement was way
ahead of other 3utual 2unds&
3utual 2unds ha.e been around for a lon# period of time to be precise for ;? yrs but the year
9BBB saw immense future potential and de.elopments in this sector& 'his year si#naled the
year of resur#ence of 3utual 2unds and the re#ainin# of in.estor confidence in these 32<s&
'his time around all the participants are in.ol.ed in the of the funds FFFFF the A3)<s$
the unit holders$ the other related parties& * the sole factor that #a.e lifer to the
of the funds was the Union %ud#et& 'he bud#et brou#ht about a lar#e number of chan#es in
one stroke& An insi#ht of the Union %ud#et on 3utual 2unds ta"ation benefits is pro.ided
It pro.ided center sta#e to the 3utual 2unds$ made them more attracti.e and pro.ides
acceptability amon# the in.estors& 'he Union %ud#et e"empted 3utual 2und di.idend #i.en
out by eDuityForiented schemes from ta"$ both at the hands of the in.estor as well as the
3utual 2und& No lon#er were the 3utual 2unds interested in sellin# the concept of 3utual
2unds they wanted to talk business$ which would mean to increase asset base$ and to #et asset
base$ and in.estor base they had to be fully armed with a whole lot of schemes for e.ery
in.estor&+o new schemes for new IO<s were ine.itable& 'he Duest to attract in.estors
e"tended beyond 5ust new schemes& 'he funds started to re#ulate and were all out
on winnin# the trust and confidence of the in.estors under the ae#is of the Association of
3utual 2unds of India 6A32I7& One can say that the industry is from infancy to
adolescence$ the industry is maturin# and the in.estors and funds are frankly and openly
discussin# difficulties opportunities and compulsions&
 F"rt- P-a$e . $i!ce Fe8r"ar) :;;6
In 2ebruary :CC;$ followin# the repeal of the Unit 'rust of India Act 9B?; U'I was
bifurcated into two separate entities& One is the +pecified Undertakin# of the Unit 'rust of
India with assets under mana#ement of /s&:B$A;> crores as at the end of (anuary :CC;$
representin# broadly$ the assets of U+ ?= scheme$ assured return and certain other schemes&
'he +pecified Undertakin# of Unit 'rust of India$ functionin# under an administrator and
under the rules framed by Go.ernment of India and does not come under the pur.iew of the
3utual 2und /e#ulations&
'he second is the U'I 3utual 2und Ltd$ sponsored by +%I$ N%$ %O% and LI)& It is
re#istered with +4%I and functions under the 3utual 2und /e#ulations& With the bifurcation
of the erstwhile U'I which had in 3arch :CCC more than /s&@?$CCC crores of assets under
mana#ement and with the settin# up of a U'I 3utual 2und$ conformin# to the +4%I 3utual
2und /e#ulations$ and with recent mer#ers takin# place amon# different pri.ate sector funds$
the 3utual 2und industry has entered its current phase of consolidation and #rowth& As at the
end of October ;9$ :CC;$ there were ;9 funds$ which mana#e assets of /s&9:?@:? crores
under ;A? schemes&
'here are many entities in.ol.ed and the dia#ram below illustrates the or#ani-ational
set up of a 3utual 2und

 T-e S'!$r
A 3utual 2und is set up b a company$ which is called the sponsor& +ponsor must be has a
sound track record$ #eneral reputation and fairness amon# the players in its business
transactions R+4%I 63utual 2unds7 re#ulations$ 9BB;S& Now in India a sponsor can be
financial institution like I)I)I$ a bank either in the public sector or in the pri.ate sector like
state bank of India 6+%I7$ life insurance corporation of India 6LI)7$ General insurance
corporation of India 6GI)7$ Unit trust of India and a body corporate re#istered under the
Indian companies Act$ 9B>? like *% portfolio leasin# Ltd&
 T-e A$$et$ Ma!a%e(e!t C('a!)
3utual 2unds are to be operated by a separate Asset 3ana#ement )ompany 6A3)7& 'he
asset mana#ement )ompany operates and mana#es the fund of the 3utual 2und schemes and
3utual 2und re#ulations issued from time to time by the +ecurities and 4"chan#e %oard of
India 6+4%I7& It has to submit a Duarterly report on the functionin# of the funds to the
trustees& 'he asset 3ana#ement )ompany employs professionals from .arious fields for
conductin# the research and takin# in.estment decisions for the ma"imi-ation of return on
in.estments made by the 3utual 2und in the capital market& 'he #eneral success of 3utual
2und lies in the Duantum of return on in.estments to any scheme of the fund&
'o ensure efficient mana#ement$ +4%I desires that e"istin# Asset 3ana#ement )ompany
should ha.e a sound track record 6#ood net worth$ di.idend payin# capacity and profitability$
etc&7 #eneral reputation and fairness in transactions& 'he directors of A3) should be e"pert
in rele.ant fields like portfolio mana#ement$ in.estment analysis and financial
 Tr"$tee$
'he third essential of a 3utual 2und is the 'rustee& A trustee is a person who holds the
property of 3utual 2und in trust for the benefit of the unit holders& 'rustees ha.e the
e"clusi.e ownership of the 'rust 2und and are also .ested with the #eneral power of
superintendence$ direction and mana#ement of the affairs of the 'rust& 'he 'rustees ensure
that Asset 3ana#ement )ompany fulfills the duties and functions assi#ned to it& 'he 'rustees
are the persons of .ery hi#h repute and e"perts in their fields&
Once a 3utual 2und trust is formed$ .irtually the role of the sponsor comes to an end$ as it is
mutual trust$ which takes char#e of the 3utual 2und$ which takes char#e of the 3utual 2und
to interact with the +4%I& 'o ensure fair dealin#s$ 3utual 2und re#ulations reDuire that one
cannot be a trustee or a director of a trustees company in more than one 3utual 2und& 2urther
at least >CN of the trustees are bound to be independent of the sponsors& 'hese independent
trustees may en5oy multiFtrusteeships& Asset 3ana#ement )ompany or its directors or its
employee shall not act as trustees of any 3utual 2und&
'he trustees appoint Asset 3ana#ement )ompany 6A3)7 to float the 3utual 2und schemes
in consultation with the sponsors& 'he trustees are to e.ol.e in.estment mana#ement
a#reement to be entered into with Asset 3ana#ement )ompany& It is the duty of the trustee to
obser.e and ensure the Asset 3ana#ement )ompany is mana#in# the schemes in accordance
with the trust deed& 'rustees are .ested with the power to dismiss Asset 3ana#ement
)ompany if they are not satisfied with the workin# of the A3)& 2or their ser.ices$ trustees
are paid their trusteeship fees$ which are specified in the trust deed itself& 'rustees are to
present annual report to the in.estors of the 3utual 2und&
&o-e o8 t)e -!i" o#(i1!tio"s o8 Asset M!"!1e-e"t Co-'!" !re !s *"+er7
9& 'o appoint the custodians of the 3utual 2und&
:& 'o appoint re#istrar and share transfer a#ents&
;& 'o file a detail of the transactions in securities with the trustees&
=& 'o report the trustees about any in.estment made in a company$ which has in.ested
more than >N of net asset .alue of any scheme of the 3utual 2und&
>& 'o ensure that in.estment of the 3utual 2und schemes are as per the pro.isions of
?& 'o file with the trustees the details of the transactions in securities made by its
officials in their own name or on behalf of the asset 3ana#ement )ompany&
@& 'o report the trustees any transaction in securities with any of its associates&
 C"$tdia!$
+4%I reDuires that each 3utual 2und shall ha.e an independent custodian& 'he custodian
should be an a#ency$ which is re#istered with +4%I under the +4%I 6)ustodian of +ecurities7
re#ulations$ 9BB?& In a 3utual 2und there is substantial work in.ol.ed for mana#in# the
scrips bou#ht from the capital market& 'heir safe custody and ready a.ailability has to be
ensured to e"ecute the Duick decisions to buy or sell the scrips& )ustodian<s main function is
safekeepin# of securities and to participate in a clearin# system on behalf of the 3utual 2und
to effect deli.eries of the securities& 'he main function of a custodian is to ensure deli.ery of
scraps only in receipt of payment and to make payment only on receipt of scrips&
'he operation of 3utual 2unds #enerally includes the followin# headsJ
 0ALUA'ION O2 IN04+'34N'
 /I)ING O2 UNI'+
 AO/'ION34N' O2 4K4N+4+
 AD04/'I+434N' NO/3+
 IN04+'34N' A/OA)*4+
 O224/ DO)U34N'
 I!<e$t(e!t <a#"ati! !r($
3utual 2und .aluation of the traded securities on a “market to market! basis& 'hey are .alued
at a date known as .aluation date& 'he nonFtraded securities are .alued by the +4%I #i.en
principles of .aluation&
 Traded Sec"ritie$
'he traded securities should be .alued at the last Duoted closin# price on the stock e"chan#e&
If the securities are traded on more than one stock e"chan#e than the .aluation should be as
per the last Duoted closin# prices on the stock e"chan#e where the security has not been
traded on the selected stock e"chan#e$ the .alue at which it is traded on another stock
e"chan#e may be used&
 N!3traded Sec"ritie$
When a security is not traded on any stock e"chan#e for a period of si"ty days prior to the
.aluation date$ the scrip must be .alued as nonFtraded scrip& 'hey should be .alued “in #ood
faith! by the A3) on the basis of appropriate .aluation methods based& 'he board of the
A3) must appro.e such method& 'he auditors should also report it as fair and reasonable in
their report the followin# principles should be adoptedJ
95 4Duity instruments shall #enerally be .alued on the basis of capitali-ation of earnin#s
solely or in combination with the net asset .alue&
=5 Debt instruments should be .alued on 1'3 6yield to maturity7 basis& 'he
capitali-ation factor bein# determined for comparable traded securities with an
appropriate discount for lower liDuidity
?5 Go.ernment securities will be .alued at 1'3 based on the pre.ailin# market rate&
<5 )all money$ bill purchased under rediscountin# and shortFterm deposits with banks
are to be .alued at cost T accrualI other money market instruments are traded at the yield
at which they are currently traded&
 Prici!% f U!it$
3utual 2unds shall pro.ide to the in.estors the price at which the units of the scheme may be
subscribed& In case of openFended scheme the 3utual 2und shall publish at least in once a
week in daily newspaper of all India circulation$ the sale and repurchase price of units& 4.ery
3utual 2und shall compute the net asset .alue of each scheme by di.idin# the net assets of
the scheme by the number of units outstandin# in the .aluation date& 'he NA0 shall be
calculated and published at least in two daily newspapers at inter.als not e"ceedin# one
It should ensure that the repurchase price is not lower than B;N of the N4' Asset 0alue and
the sale price is not hi#her than 9C@N of NA0& )are should be taken that the repurchase price
of the units of a close ended scheme shall not be lower than B>N of the NA0& 'he difference
between the repurchase price and the sale price of the unit shall not e"ceed @N calculated on
sale price&
 Di<ide!d di$tri8"ti!
4.ery 3utual 2und and A3) shall dispatch to the unit holders the di.idend warrants within
=: days of the declaration of the di.idend& It should dispatch to the redemption or repurchase
proceeds within 9C workin# days from the date of redemption or repurchase& 'he A3) shall
be liable for penalty for failure to dispatch the redemption or repurchase proceeds within the
stipulated period& It is liable to pay interest to the unit holders U9>N per annum&
 A''rti!(e!t f E='e!$e$
An A3) incur .arious e"penses such as initial e"penses$ recurrin# e"penses and in.estment
mana#ement and ad.isory fees& be the e"penses but it should clearly identify all the
e"penses and apportion it in the indi.idual schemes&
 Li(it$ ! i!<e$t(e!t a!d ad<i$r) fee$
9&:>N of the first /s&9CC crores of the weekly a.era#e net assets outstandin# in the
accountin# year$ and U9N of weekly a.era#e net assets in e"cess of /s&9CC crores& 2or
schemes launched on a no load basis$ the A3) shall be entitled to collect an additional
mana#ement fee not e"ceedin# 9N of the weekly a.era#e net assets outstandin# in each
financial year&
 I!itia# I$$"e E='e!$e$
When a scheme is launched$ the A3) incur some initial launchin# e"penses& 'he
benefits of these e"penses accrue many years& +o they cannot be char#ed to any
sin#le year& +4%I permits amorti-ation of initial e"penses as followsJ
• 2or a closed end scheme floated a load basis$ the initial issue e"penses shall be
amorti-ed on a weekly basis the period of the scheme&
• 2or an openFended scheme floated on a load basis$ initial issue e"penses may be
amorti-ed a period not e"ceedin# fi.e years& Issue e"penses incurred durin# the life
of an openFend scheme cannot be amorti-ed&
 Rec"rri!% E='e!$e$
It includes the followin#J
• 3arketin# and sellin# e"penses includin# a#entsG commission
• %rokera#e and transaction costs
• /e#istrar ser.ices for transfer of units sold or redeemed
• Audit fees
• )ustodian char#es
• )osts related to in.estor communication
• )osts of fund transfers from location to location
• )osts of pro.idin# accounts statements and di.idendHredemption cheDues and
• Insurance premium paid by the fund
• Windin# up costs for terminatin# a fund or a scheme&
• )ost of statutory ad.ertisements
• Other costs as appro.ed by +4%I&
 Tta# E='e!$e$
'he total e"penses of the scheme as char#ed by the A3) e"cludin# issue or redemption
e"pense but includin# in.estment mana#ement and ad.isory fees$ are sub5ect to the
followin# limitsJ
• On the first /s& 9CC crores of the a.era#e weekly net assets :&>N
• On the ne"t /s& ;CC crores of the a.era#e weekly net assets :&:>N
• On the ne"t /s& ;CC crores of the a.era#e weekly net assets :&CN
• On the balance of the assets 9&@>N
 Ad<erti$e(e!t f $c-e(e$
An ad.ertisement relatin# to any scheme of the 3utual 2und has to comply with the
pro.isions of Ad.ertisement code rescribed by +4%I in +i"th +chedule of its /e#ulations&
'he ad.ertisement shall be submitted to +4%I within @ days from the date of issue& 'he
ad.ertisement for each scheme shall disclose in.estment of each scheme&
'he important points of the Ad.ertisement code for compliance in respect of an
ad.ertisement are
95 It shall be truthful$ fair and clear
=5 It shall not contain a statement$ promise or forecast which is untrue or
?5 It shall be considered to be misleadin# if it containsF
6a7 3isleadin# statements i&e&$ representations about the performance or acti.ities
of the 3utual 2und in the absence of necessary e"planatory or Dualifyin# statements
and which #i.e an e"a##erated picture of the performance or acti.ities of the fund$
than what it really is&
6b7 An inaccurate portrayal of a past performance or its portrayal in a manner$
which implies that past #ains or income$ will be repeated in the future&
6c7 +tatement promisin# the benefits of ownin# units or in.estin# in the schemes
of 3utual 2unds without simultaneous mention of material risks associated with such
<5 Its desi#n in content and formal or in print should not be in such a way as likely to be
misunderstood or likely to dis#uise the si#nificance of any statement&
A5 It shall not contain statements$ which directly or by implication or by omission may
mislead the in.estor&
;5 It shall not be so framed as to e"ploit the lack of e"perience or knowled#e of the
in.estors& As the in.estor may not be sophisticated in le#al or financial matter care should
be taken that the ad.ertisement is set forth&
B5 It shall be in a clear$ concise and understandable manner& 4"tensi.e use of technical
or le#al terminolo#y or comple" lan#ua#e or the inclusion of e"cessi.e details$ which
may detract the in.estors$ should be a.oided&
C5 It should not contain information$ the accuracy of which is to any e"tent dependent on
assumptions& Any Ad.ertisement that makes claims about the performance of the fund
shall be supported by rele.ant fi#ures&
:5 If it particulars of the past performance of the 3utual 2und$ it shall #i.e the
basis for computin# the rates of return yield and ad5ustments made$ if any$ must be
e"pressly indicated& It should also be made clear that such information is not necessarily
indicati.e of future results and may not necessarily pro.ide a basis for comparison with
other in.estments& Any ad.ertisement containin# information re#ardin# performance$
NA0& yield or returns shall #i.e such data for the past three years$ applicable&
9>5 All ad.ertisements shall clearly state all the risk factors associated with 3utual 2unds
and +ecurities in.estments& It should state that they are sub5ect to market risks$ and there
can be no assurance that the 2undGs will be achie.ed&
995 All ad.ertisements issued by a 3utual 2und or its sponsor or Asset 3ana#ement
)ompany shall state Pall in.estments in 3utual 2unds and securities are sub5ect to market
risks and the NA0 of the schemes may #o up or down dependin# upon the factors and
forces affectin# the securities market<& 'hese ad.ertisements also disclose all the risk
9=5 No ad.ertisement shall be issued statin# that the scheme has been subscribed or
o.ersubscribed durin# the period the scheme is open for subscription
9?5 If a corporate ad.ertisement is issued by the sponsor or any of the companies in the
Group or an associate company of the sponsor durin# the subscription period$ no
reference shall be made to the scheme of the 3utual 2und or 3utual 2und itselfI
otherwise it will be treated as an issue ad.ertisement&
9<5 Ad.ertisement on the performance of the 3utual 2und or its Asset 3ana#ement
)ompany shall compare the past performance only or the basis of per unit of statistics as
per these /e#ulations& Ad.ertisements for NA0s must indicate the past as well as the
latest NA0 of scheme& 'he yield calculations will be made as pro.ided in these
 I!<e$t(e!t a''rac-e$
'here are two types of in.estment approaches practiced by the in.estment mana#ers& 'here
are top down approach and bottom up approach& 'he top down approach be#ins by analysis
the national and international market en.ironment throu#h Duantitati.e forecastin# and
scenario plannin#& 'he bottom approach be#ins with the analysis of the concerned company&
'he top down approach helps in lon#Fterm in.estment #oals$ whereas the bottom approach is
utili-ed for short term or speculati.e #ains&
Institutions like 3utual 2unds would benefit by top down approach because they ha.e lon#F
term in.estment #oals and their portfolio includes a .ariety of assets with different de#ree of
'he success of the 3utual 2und depends on the ability of the fund mana#ers to predict the
future beha.ior of the scrip<s& 'he fi.e most effecti.e methods to predict stock performance
are as followsJ
• riceH earnin#s ratio
• rice to cash flow ratio
• rice to book .alue ratio
• rice momentum
• 4%ID'
• Di.idend yield
• rice #ain in the last year
'hese parameters are our personal opinion and in no way they are the standard parameters&
'hese abo.e readin#s should be accompanied by a #ood Duality in.estment research&
Althou#h the research culture has not #rown in India but it is an indispensable part of any
in.estment in securities& 'hese researches should broadly the followin# three pointsJ
/. Macr #e<e#>
It includes studyin# the past trend and forecastin# about future performance of Indian as well
other world economics& Importance should be #i.en to interest rate$ inflation rate$
unemployment$ GD fi#ures$ and chan#es in #o.ernment policies in and around the world&
'he researcher should try to conclude the out performin# sector of the economy in future&
:. I!d"$tr) Le<e#>
It includes foretellin# the performance of a particular industry in the pre.ailin# social$
economic$ le#al and political situations& Different parameters should be #i.en to each
independent industry& In this second step the researcher should try to conclude the #rowin#
6. Micr #e<e# re$earc->
It includes studyin# the particular company in the profitable industry for the in.estment
'his type of research is for lon#Fterm in.estment and should be on a continuous basis&
 Offer Dc"(e!t
%efore the launchin# of any scheme$ the trustee should appro.e such scheme and a copy of
offer document should be filled with +4%I& 'he document containin# the details of a new
scheme that the A3) or the sponsor prepares for and circulates to the prospecti.e in.estors
is called the prospectus or the other offer document&
In case of closeFended scheme the offer document is issued only once at the time of issue
where as in case of openFended scheme it is .alid for all the time& Althou#h it is issued only
at the time of issue but it remain .alid durin# the life of the units or till amended& It is called
as key information memorandum and it is most important document for in.estors& It contains
details of A3)$ sponsors$ bankers$ re#istrars< etc alon# with the terms and conditions of the
issue& It also mentions the ri#hts and duties of the in.estors& Apart from the abo.e si"$ NA0
and in.estments of fund money also plays a important part in operations of 3utual 2und&
Net Asset V!(*e /NAV0
It is .alue of net assets of the funds& 'he in.estor<s subscription is treated as the unit capital
in the balance sheet of the fund and the in.estments on their behalf are treated as assets& 'he
funds net assets are defined as the assets minus liabilities&
Where a net asset of the scheme is defined as belowJF
Net Assets o8 t)e &%)e-e D M! v!(*e o8 i"vest-e"ts E Re%eiv!#(es E Ot)er !%%r*e+
i"%o-e E ot)er !ssets 3 A%%r*e+ EF'e"ses 3 Ot)er P!!#(es 3 Ot)er Li!#i(ities
Net !sset o8 t)e s%)e-e
N*-#er o8 *"its o*tst!"+i"1
Wide .arieties of 3utual 2und +chemes e"ist to cater to the needs such as financial position$
risk tolerance and return e"pectations etc&
 O'e!3e!ded f"!d
An openFended fund or scheme is one that is a.ailable for subscription and repurchase on a
continuous basis& 'hese schemes do not ha.e a fi"ed maturity period& In.estors can
con.eniently buy and sell units at Net Asset 0alue 6NA07 related prices$ which are declared
on a daily basis& 'he key feature of openFend schemes is liDuidity&
 C#$e3e!ded f"!d
A closeFended fund or scheme has a stipulated maturity period e&#& >F@ years& 'he fund is
open for subscription only durin# a specified period at the time of launch of the scheme&
In.estors can in.est in the scheme at the time of the initial public issue and thereafter they
can buy or sell the units of the scheme on the stock e"chan#es where the units are listed& In
order to pro.ide an e"it route to the in.estors$ some closeFended funds #i.e an option of
sellin# back the units to the 3utual 2und throu#h periodic repurchase at NA0 related prices&
+4%I /e#ulations stipulate that at least one of the two e"it routes is pro.ided to the in.estor
i&e& either repurchase facility or throu#h listin# on stock e"chan#es& 'hese 3utual 2unds
schemes disclose NA0 #enerally on weekly basis&
A scheme can also be classified on the basis of the in.estment that are they are
desi#ned to meet the of different types of sa.ers& 'his classification can also be
name as portfolio classification& +uch schemes may be openFended or closeFended schemes&
+uch schemes may be classified mainly as followsJ
 Gr?t- @ eA"it) rie!ted $c-e(e
'he aim of #rowth funds is to pro.ide capital appreciation the medium to lon#F term&
+uch schemes normally in.est a ma5or part of their corpus in eDuities& +uch funds ha.e
comparati.ely hi#h risks& 'hese schemes pro.ide different options to the in.estors like
di.idend option$ capital appreciation$ etc& and the in.estors may choose an option dependin#
on their preferences& 'he in.estors must indicate the option in the application form& 'he
3utual 2unds also allow the in.estors to chan#e the options at a later date& Growth schemes
are #ood for in.estors a lon#Fterm outlook seekin# appreciation a period of time&
 I!c(e@de8t rie!ted $c-e(e
'he aim of income funds is to pro.ide re#ular and steady income to in.estors& +uch schemes
#enerally in.est in fi"ed income securities such as bonds$ corporate debentures$ Go.ernment
securities and money market instruments& +uch funds are less risky compared to eDuity
schemes& 'hese funds are not affected because of fluctuations in eDuity markets& *$
opportunities of capital appreciation are also limited in such funds& 'he NA0s of such funds
are affected because of chan#e in interest rates in the country& If the interest rates fall$ NA0s
of such funds are likely to increase in the short run and .ice .ersa& *$ lon#Fterm
in.estors may not bother about these fluctuations&
 Ba#a!ced f"!d
'he aim of balanced funds is to pro.ide both #rowth and re#ular income as such schemes
in.est both in eDuities and fi"ed income securities in the proportion indicated in their offer
documents& 'hese are appropriate for in.estors lookin# for moderate #rowth& 'hey #enerally
in.est =CF?CN in eDuity and debt instruments& 'hese funds are also affected because of
fluctuations in share prices in the stock markets& *$ NA0s of such funds are likely to
be less .olatile compared to pure eDuity funds&
 M!e) (arBet@#iA"id f"!d
'hese funds are also income funds and their aim is to pro.ide easy liDuidity$ preser.ation of
capital and moderate income& 'hese schemes in.est e"clusi.ely in safer shortFterm
instruments such as treasury bills$ certificates of deposit$ commercial paper and interFbank
call money$ #o.ernment securities$ etc& /eturns on these schemes fluctuate much less
compared to other funds& 'hese funds are appropriate for corporate and indi.idual in.estors
as a means to park their surplus funds for short periods&
 Le<era%ed F"!d$
Le.era#ed funds or borrowed funds are used in order to increase the si-e of the .alue of the
portfolio and benefit the shareholders by #ains e"ceedin# the cost of the borrowed funds&
2unds are used in speculati.e and risky in.estments like short sale to take ad.anta#e of
declinin# market to reali-e #ains in the portfolio& +hort sales decrease loss of the portfolio in
a declinin# market and .ice .ersa in risin# market&
 D"a# '"r'$e f"!d$
Income and #rowth are two$ which are achie.ed by offerin# half of the amount of
funds to those in.estors who wish re#ular income and half to those who wish #rowth& 'he
funds thus recei.ed are pooled to#ether and used for in.estment& Any income deri.ed from
the portfolio #oes to the in.estors who hold income shares& 'he in.estors who hold capital
shares recei.e no income& Instead they recei.e capital #ains or losses that result from
in.estments of total portfolio&
 Rea# e$tate f"!d$
/eal estate fund is of closedFend type& 'he fund is named so because of the primary
in.estment in real estate .entures& +uch funds are of .arious types dependin# upon real estate
 Perfr(a!ce f"!d$
'he in.estment is made in buyin# eDuity shares of smallFunseasoned companies with
relati.ely hi#h price earnin#s ratio and hi#her price .olatility& +uch funds were set up in U+A
in 9B?Cs to seek lar#e profits in hi#hFflyin# common stocks&
 S'ecia#t) f"!d$
'he in.estment is made in #ood track record companies$ which offer lon#Fterm capital
#rowth and pro.ide handsome di.idend income&
 I!de= f"!d$
Inde" 2unds replicate the portfolio of a particular inde" such as the %+4 +ensiti.e inde"$
+8 N+4 >C inde" 6Nifty7$ etc 'hese schemes in.est in the securities in the same wei#ht a#e
comprisin# of an inde"& NA0s of such schemes would rise or fall in accordance with the rise
or fall in the inde"$ thou#h not e"actly by the same percenta#e due to some factors known as
Ltrackin# errorL in technical terms& Necessary disclosures in this re#ard are made in the offer
document of the 3utual 2und scheme& 'here are also e"chan#e traded inde" funds launched
by the 3utual 2unds$ which are traded on the stock e"chan#es&
 Gi#t f"!d$
'hese funds in.est e"clusi.ely in #o.ernment securities& Go.ernment securities ha.e no
default risk& NA0s of these schemes also fluctuate due to chan#e in interest rates and other
economic factors as are the case with income or debt oriented schemes&
 S'ecia#iCed f"!d$
'hese are the fundsHschemes$ which in.est in the securities of only those sectors or industries
as specified in the offer documents& e&#& harmaceuticals$ +oftware$ 2ast )onsumer
Goods 623)G7$ etroleum stocks$ etc& 'he returns in these funds are dependent on the
performance of the respecti.e sectorsHindustries& While these funds may #i.e hi#her returns$
they are more risky compared to di.ersified funds& In.estors need to keep a watch on the
performance of those sectorsHindustries and must e"it at an appropriate time& 'hey may also
seek of an e"pert&
 Ta= $a<i!%$ $c-e(e$
'hese schemes offer ta" rebates to the in.estors under specific pro.isions of the Income 'a"
Act$ 9B?9 as the Go.ernment offers ta" for in.estment in specified a.enues& e&#&
4Duity Linked +chemes 64L++7& ension schemes launched by the 3utual 2unds
also offer ta" benefits& 'hese schemes are #rowth oriented and in.est preFdominantly in
eDuities& 'heir #rowth opportunities and risks associated are like any eDuityForiented scheme&
 Lad r !3#ad f"!d$
A Load 2und is one that char#es a percenta#e of NA0 for entry or e"it& 'hat is$ each time
one buys or sells units in the fund$ a char#e will be payable& 'his char#e is used by the
3utual 2und for marketin# and distribution e"penses& +uppose the NA0 per unit is /s&9C& If
the entry as well as e"it load char#ed is 9N$ then the in.estors who buy would be reDuired to
pay /s&9C&9C and those who offer their units for repurchase to the 3utual 2und will #et only
/s&B&BC per unit& 'he in.estors should take the loads into consideration while makin#
in.estment as these affect their yieldsHreturns& *$ the in.estors should also consider
the performance track record and standards of the 3utual 2und$ which are more
important& 4fficient funds may #i.e hi#her returns in spite of loads&
A noFload fund is one that does not char#e for entry or e"it& It means the in.estors can enter
the fundHscheme at NA0 and no additional char#es are payable on purchase or sale of units&
3utual 2unds can be classified from the an#le of territorial 5urisdiction of operations in two
D(e$tic M"t"a# F"!d$ 7DMF
Domestic 3utual 2unds launch schemes$ which are operational within political territorial
limits of a country for the residents or nonFresidents&
Off$-re M"t"a# F"!d$ 7OMF
Offshore 3utual 2unds are cross border funds meant to attract forei#n for in.estment
in India&
 Prfe$$i!a# Ma!a%e(e!t
3utual 2unds pro.ide the ser.ices of e"perienced and skilled professionals$ backed by a
dedicated in.estment research team that analyses the performance and prospects of
companies and selects suitable in.estments to achie.e the of the scheme&
 Di<er$ificati!
3utual 2unds in.est in a number of companies across a broad crossFsection of industries and
sectors& 'his di.ersification reduces the risk because seldom do all stocks decline at the same
time and in the same proportion& 1ou achie.e this di.ersification throu#h a 3utual 2und with
far less money than you can do on your own&
 C!<e!ie!t Ad(i!i$trati!
In.estin# in a 3utual 2und reduces paperwork and helps you a.oid many problems such as
bad deli.eries$ delayed payments and follow up with brokers and companies& 3utual 2unds
sa.e your time and make in.estin# easy and con.enient&
 Ret"r! Pte!tia# a medium to lon#Fterm$ 3utual 2unds ha.e the potential to pro.ide a hi#her return as
they in.est in a di.ersified basket of selected securities&
 L? C$t
3utual 2unds are a relati.ely less e"pensi.e way to in.est compared to directly in.estin# in
the capital markets because the benefits of scale in brokera#e$ custodial and other fees
translate into lower costs for in.estors&
 *e## Re%"#ated
All 3utual 2unds are re#istered with +4%I and they function within the pro.isions of strict
re#ulations desi#ned to protect the interests of in.estors& 'he operations of 3utual 2unds are
re#ularly monitored by +4%I&
 LiA"idit)
In openFend schemes$ the in.estor #ets the money back promptly at net asset .alue related
prices from the 3utual 2und& In closedFend schemes$ the units can be sold on a stock
e"chan#e at the pre.ailin# market price or the in.estor can a.ail of the facility of direct
repurchase at NA0 related prices by the 3utual 2und&
 Tra!$'are!c)
We can #et re#ular information on the .alue of your in.estment in addition to disclosure on
the specific in.estments made by your scheme$ the proportion in.ested in each class of assets
and the fund mana#erGs in.estment strate#y and outlook&
 F#e=i8i#it)
'hrou#h features such as re#ular in.estment plans$ re#ular withdrawal plans and di.idend
rein.estment plans$ you can systematically in.est or withdraw funds accordin# to your needs
and con.enience&
 Affrda8i#it)
In.estors indi.idually may lack sufficient funds to in.est in hi#hF#rade stocks& A 3utual
2und because of its lar#e corpus allows e.en a small in.estor to take the benefit of its
in.estment strate#y&
Others areJ
 )hoice of schemes
 'a" benefits

 M! Ris. O if the o.erall stock or bond markets fall on account of macroeconomics
factor$ the .alue of the stock or bond holdin# in the fund<s portfolio can droop there by
impactin# the NA0&
 No"3M! Ris. 3 an indi.idual company can pull down its stock price$ which can
affect$ ne#ati.ely$ funds holdin# a lar#e Duantity of that stock& 'his risk can be reduces by a di.ersified portfolio that consists of a wide .ariety of stocks drawn from
different industries&
 I"terest R!te Ris. G bond prices and interest rates mo.e in opposite directions&
When interest rate rise$ bond price fall and this decline in underlin# securities affect the
NA0 ne#ati.ely& 'he e"tent of the ne#ati.e impact is dependent on factor such as
maturity profile$ liDuidity etc&
 Cre+it Ris. G bond are debt obli#ation& +o$ when fund in.est in corporate bonds$ they
run the risk of the corporate defaultin# on their interest payment and the principal
payment obli#ation and when that risk crystalli-e$ it leads to a fall in the .alue of the bond
causin# the fund to take a beatin#.
 Sc-e(e$ f M"t"a# F"!d$
 'he asset mana#ement company shall launch no scheme unless the trustees appro.e such
scheme and a copy of the offer document has been filed with the %oard&
 4.ery 3utual 2und shall alon# with the offer document of each scheme pay filin# fees&
 'he offer document shall contain disclosures which are adeDuate in order to enable the
in.estors to make informed in.estment decision includin# the disclosure on ma"imum
in.estments proposed to be made by the scheme in the listed securities of the #roup
companies of the sponsor&
 No one shall issue any form of application for units of a 3utual 2und unless the form is
accompanied by the memorandum containin# such information as may be specified by
the %oard&
 4.ery close ended scheme shall be listed in a reco#ni-ed stock e"chan#e within si"
months from the closure of the subscription
 'he asset mana#ement company may at its option repurchase or reissue the repurchased
units of a closeFended scheme&
 A closeFended scheme shall be fully redeemed at the end of the maturity period& LUnless a
ma5ority of the unit holders otherwise decide for its by passin# a resolutionL&
 'he 3utual 2und and asset mana#ement company shall be liable to refund the application
money to the applicants F
6i7 If the 3utual 2und fails to recei.e the minimum subscription amount
referred to in clause 6a7 of subFre#ulation 697I
6ii7 If the moneys recei.ed from the applicants for units are in e"cess of
subscription as referred to in clause 6b7 of subFre#ulation 697&
 'he asset mana#ement company shall issue to the applicant whose application has been
accepted$ unit certificates or a statement of accounts specifyin# the number of units
allotted to the applicant as soon as possible but not later than si" weeks from the date of
closure of the initial subscription list and or from the date of receipt of the reDuest from
the unit holders in any open ended scheme&
 R"#e$ re%ardi!% ad<erti$e(e!t
 'he ad.ertisement for each scheme shall disclose in.estment ob5ecti.e for each scheme&
 An ad.ertisement shall be truthful$ fair and clear and shall not contain a statement$
promise or forecast which is untrue or misleadin#&
 Ad.ertisements shall not be so framed as to e"ploit the lack of e"perience or knowled#e
of the in.estors&
 All ad.ertisements issued by a 3utual 2und or its sponsor or Asset 3ana#ement
)ompany shall state$ Lall in.estments in 3utual 2unds and securities are sub5ect to
market risks and the NA0 of the schemes may #o up or down dependin# upon the factors
and forces affectin# the securities marketL&
 'he ad.ertisement shall not compare one fund with another$ implicitly or e"plicitly$
unless the comparison is fair and all information rele.ant to the comparison is included in
the ad.ertisement&
 'he offer document and ad.ertisement materials shall not be misleadin# or contain any
statement or opinion$ which are incorrect or false&
 I!<e$t(e!t 8Decti<e$ a!d <a#"ati! '#icie$
 'he moneys collected under any scheme of a 3utual 2und shall be in.ested only in
transferable securities in the money market or in the capital market or in pri.ately placed
debentures or securities debts&
 ro.ided that moneys collected under any money market scheme of a 3utual 2und shall
be in.ested only in money market instruments in accordance with directions issued by the
/eser.e %ank of IndiaI
 'he 3utual 2und shall not borrow e"cept to meet temporary liDuidity needs of the 3utual
2unds for the purpose of repurchase$ redemption of units or payment of interest or
di.idend to the unit holders&
 'he 3utual 2und shall not ad.ance any loans for any purpose&
 4.ery 3utual 2und shall compute and carry out .aluation of its in.estments in its
portfolio and publish the same in accordance with the .aluation norms specified in 4i#hth
 4.ery 3utual 2und shall compute the Net Asset 0alue of each scheme by di.idin# the
net assets of the scheme by the number of units outstandin# on the .aluation date&
 'he Net Asset 0alue of the scheme shall be calculated and published at least in two daily
newspapers at inter.als of not e"ceedin# one weekJ
 'he price at which the units may be subscribed or sold and the price at which such units
may at any time be repurchased by the 3utual 2und shall be made a.ailable to the
 Ge!era# 8#i%ati!$
 4.ery asset mana#ement company for each scheme shall keep and maintain proper books
of accounts$ records and documents$ for each scheme so as to e"plain its transactions and
to disclose at any point of time the financial position of each scheme and in particular
#i.e a true and fair .iew of the state of affairs of the fund and intimate to the %oard the
place where such books of accounts$ records and documents are maintained&
 'he financial year for all the schemes shall end as of 3arch ;9 of each year&
 4.ery 3utual 2und or the asset mana#ement company shall prepare in respect of each
financial year an annual report and annual statement of accounts of the schemes and the
fund as specified in 4le.enth +chedule&
 4.ery 3utual 2und shall ha.e the annual statement of accounts audited by an auditor who
is not in any way associated with the auditor of the asset mana#ement company&
 Prced"re fr acti! i! ca$e f defa"#t
 On and from the date of the suspension of the certificate or the$ as the case may
be$ the 3utual 2und$ trustees or asset mana#ement company$ shall cease to carry on any
acti.ity as a 3utual 2und$ trustee or asset mana#ement company$ durin# the period of
suspension$ and shall be sub5ect to the directions of the %oard with re#ard to any records$
documents$ or securities that may be in its custody or control$ relatin# to its acti.ities as
3utual 2und$ trustees or asset mana#ement company&
 Re$tricti!$ ! i!<e$t(e!t
 A 3utual 2und scheme shall not in.est more than 9>N of its NA0 in debt instruments
issued by a sin#le issuer$ which are rated not below in.estment #rade by a credit ratin#
a#ency authori-ed to carry out such acti.ity under the Act& +uch in.estment limit may be
e"tended to :CN of the NA0 of the scheme with the prior of the %oard of
'rustees and the %oard of asset mana#ement company
 A 3utual 2und scheme shall not in.est more than 9CN of its NA0 in unrated debt
instruments issued by a sin#le issuer and the total in.estment in such instruments shall not
e"ceed :>N of the NA0 of the scheme& All such in.estments shall be made with the prior of the %oard of 'rustees and the %oard of Asset 3ana#ement )ompany&
 No 3utual 2und under all its schemes should own more than ten per cent of any
companyGs paid up capital carryin# .otin# ri#hts&
 'ransfers of in.estments from one scheme to another scheme in the same 3utual 2und
shall be allowed only if F
95 +uch transfers are done at the pre.ailin# market price for Duoted instruments on spot
=5 'he securities so transferred shall be in conformity with the in.estment ob5ecti.e of the
scheme to which such transfer has been made&
 A scheme may in.est in another scheme under the same asset mana#ement company or
any other 3utual 2und without char#in# any fees$ pro.ided that a##re#ate inter scheme
in.estment made by all schemes under the same mana#ement or in schemes under the
mana#ement of any other asset mana#ement company shall not e"ceed >N of the net
asset .alue of the 3utual 2und&
 'he initial issue e"penses in respect of any scheme may not e"ceed si" per cent of the
funds raised under that scheme&
 4.ery 3utual 2und shall buy and sell securities on the basis of deli.eries and shall in all
cases of purchases$ take deli.ery of relati.e securities and in all cases of sale$ the
securities and shall in no case put itself in a position whereby it has to make short sale or
carry forward transaction or en#a#e in badla finance&
 4.ery 3utual 2und shall$ #et the securities purchased or transferred in the name of the
3utual 2und on account of the concerned scheme$ in.estments are intended to
be of lon#Fterm nature&
 endin# deployment of funds of a scheme in securities in terms of in.estment
of the scheme a 3utual 2und can in.est the funds of the scheme in short term deposits of
scheduled commercial banks&
 No 3utual 2und scheme shall make any in.estment inI
 Any unlisted security of an associate or #roup company of the sponsorI or
 Any security issued by way of pri.ate placement by an associate or #roup company of
the sponsorI or
 'he listed securities of #roup companies of the sponsor$ which is in e"cess of ;CN of
the net assets Vof all the schemes of a 3utual 2undW
 No 3utual 2und scheme shall in.est more than 9C per cent of its NA0
in the eDuity shares or eDuity related instruments of any company& ro.ided that$ the limit
of 9C per cent shall not be applicable for in.estments in inde" fund or sector or industry
specific scheme&
 A 3utual 2und scheme shall not in.est more than >N of its NA0 in the eDuity shares
or eDuity related in.estments in case of openFended scheme and 9CN of its NA0 in
case of closeFended scheme&
3utual 2unds ha.e opened new .istas to in.estors and imparted much needed liDuidity to the
system& In this process they ha.e challen#ed the hitherto dominant role of the commercial
banks in the financial market and national economy&
 M"t"a# F"!d$ a!d H"$e-#d Sa<i!%$
In 9BB@ the share of 3utual 2unds in household financial assets was >N in the U+A$ AN
in Germany$ ;N in (apan$ ;Nin Italy and about >N in India& 'he other indicator$ which
hi#hli#hts their importance$ is the rate of #rowth of this share& 'he economist ma#a-ine in its
issue of B Oct 9BB> reported that in 9BAC$ >AN on the personal sector wealth in the U+A was
held in financial assetsI by 9BB: this had risen to ?;N& Out of these financial assets the share
of 3utual 2unds stood at >&=N as a#ainst C&@N in 9BAC&
In India there has been a steady increase in the share of 3utual 2unds in households
6financial assets7 since 9BAAFAB$ i&e& after the entry of public sector 3utual 2unds& 'he most
si#nificant #rowth durin# 9BACFA9 to 9BB:FB; was in respect of U'I& It increased from C&;N
of the total household in 9BACFA9 to @&CN in 9BB:FB;& * the percenta#e share
of bank deposits declined from =>&AN in9BACFA9 to =C&:N in9BB=FB>&
 M"t"a# F"!d$ a!d t-e Ca'ita# MarBet
Accordin# to center for 3onitorin# Indian 4conomy 6)3I47$ “3utual 2unds! cornered 9:N
of the total market capitali-ation$ the share of the U'I bein# B&=N of the total market
capitali-ation of Indian stock markets in 9BB=& Out of the total in.estment of rs&@9$ A:A&?:
crores$ >9N was in.ested ineDuities while about :9N was in.ested in debt instruments like
debenturesH bonds& 'his indicates that 3utual 2unds ha.e stron#ly supported the eDuity
market& While nonFU'I 3utual 2unds ha.e tended more towards eDuities and debentures&
U'I due to its special structure has rendered better support to #o.ernment securities market&
 M"t"a# F"!d$ a!d Cr'rate Fi!a!ce
Accordin# to the flow of funds statistics published by the /%I$ the share of the bankin# sector
in fillin# the resource #ap of the corporate sector has declined from >=&=:N in 9BAAFAB to
:&;N in 9BB9FB:I while of the other financial sector 6includin# 3utual 2unds7 has increased
from ;B&BN to 9C:&>AN& /%I has noted that “the rapid #rowth of 3utual 2unds and increase
in term lendin# by other financial institutions appear to ha.e contributed to this trend!&
Alone U'I with 5ust one scheme in 9B?= now competes with as many as =CC odd products
and ;= players in the market& In spite of the stiff competition and losin# market share$ U'I
still remains a formidable force to reckon with&
Last si" years ha.e been the most turbulent as well as e"itin# ones for the industry& New
players ha.e come in$ while others ha.e decided to close shop by either sellin# off or
mer#in# with others& roduct inno.ation is now passX with the #ame shiftin# to performance
deli.ery in fund mana#ement as well as 'hose directly associated with the fund
mana#ement industry like distributors$ re#istrars and transfer a#ents$ and e.en the re#ulators
ha.e become more mature and responsible&
'he industry is also a profound impact on financial markets& While U'I has always
been a dominant player on the bourses as well as the debt markets$ the new #enerations of
pri.ate funds$ which ha.e #ained substantial mass$ are now seen fle"in# their muscles& 2und
mana#ersI by their selection criteria for stocks ha.e forced corporate #o.ernance on the
industry& %y rewardin# honest and transparent mana#ement with hi#her .aluations$ a system
of riskFreward has been created where the corporate sector is more transparent then before&
2unds ha.e shifted their focus to the recession free sectors like pharmaceuticals$ 23)G and
technolo#y sector& 2unds performances are 2unds collection$ which a.era#ed at
less than /s&9CCbn per annum fi.eFyear period spannin# 9BB;FBA doubled to /s&:9Cbn
in 9BBAFBB& In the current year mobili-ation till now ha.e e"ceeded /s&;CCbn& 'otal
collection for the current financial year endin# 3arch :CCC is e"pected to reach /s&=>Cbn&
What is particularly noteworthy is that bulk of the mobili-ation has been by the pri.ate sector
3utual 2unds rather than public sector 3utual 2unds& Indeed pri.ate 32s saw a net inflow of
/s&@A9B&;= crores durin# the first nine months of the year as a#ainst a net inflow of
/s&?C=&=C crores in the case of public sector funds&
3utual 2unds are now also competin# with commercial banks in the race for retail in.estor<s and corporate float money& 'he power shift towards 3utual 2unds has become
ob.ious& 'he comin# few years will show that the traditional a.enues are losin# out in
the current scenario& 3any in.estors are reali-in# that in.estments in accounts are as
#ood as lockin# up their deposits in a closet& 'he fund mobili-ation trend by 3utual 2unds in
the current year indicates that money is #oin# to 3utual 2unds in a bi# way& 'he collection in
the first half of the financial year 9BBBF:CCC matches the whole of 9BBAFBB&
India is at the first sta#e of a re.olution that has already peaked in the U&+& 'he U&+& boasts of
an Asset base that is much hi#her than its bank deposits& In India$ 3utual 2und assets are not
e.en 9CN of the bank deposits$ but this trend is be#innin# to chan#e& /ecent fi#ures indicate
that in the first Duarter of the current fiscal year 3utual 2und assets went up by 99>N
whereas bank deposits rose by only 9@N& 6+ourceJ 'hink tank$ 'he 2inancial 4"press7 'his
is forcin# a lar#e number of banks to adopt the concept of narrow bankin# wherein the
deposits are kept in Gilts and some other assets$ which liDuidity and reduces risk&
'he basic fact lies that banks cannot be i#nored and they will not close down completely&
'heir role as intermediaries cannot be i#nored& It is 5ust that 3utual 2unds are #oin# to
chan#e the way banks do business in the future&
/eturn Low %etter
Administrati.e e"p& *i#h Low
/isk Low 3oderate
In.estment options Less 3ore
Network *i#h penetration Low but
LiDuidity At a cost %etter
Euality of assets Not transparent 'ransparent
Interest calculation
3inimum balance between
8 ;C
Of e.ery month
Guarantee 3a"imum /s&9 lakh on

2uture of 3utual 2unds industry seems to be bri#ht in .iew of impro.ed performance of fund
mana#ers and increasin# confidence of in.estors in workin# the funds as also benefits of
in.estin# in funds& 2urther$ with economy pickin# up$ 3utual 2unds industry is e"pected to
#row at a #ood pace& It is also e"pected that money into the lap of 3utual 2unds
from banks as openFended funds offers same con.enience$ hi#her rate of returns$ .ariety of
schemes$ better performance$ transparency$ after sales customer ser.ices and #enuine retail
in.estor interest will dri.e the industryGs #rowth& 'echnolo#y and new distribution channels
would increase reach e.en as in.estors mo.e funds out from traditional in.estment channels&
Despite slowdown in #rowth of 3utual 2und industry durin# 9BBBF:CCC$ #rowth potential of
the industry is beyond doubt as the )hairman of *ousin# De.elopment 2inance )orporation
Deepak arekh stated that recently we ha.e only scratched surface& 4Duity funds in the U+
account for nearly ?> per cent of the total eDuity market capitali-ation while in India it is
barely >N of %+4Gs market capitali-ation of /s& A$>C$CCC crore in 3arch ;9$ :CCC& Indian
3utual 2unds are e"pectin# a pickup in eDuity in.estments in near future with blue chip
shares lookin# attracti.ely .alue after the recent declines&
%esides$ the =C per cent a.era#e #rowth of the 3utual 2und industry durin# the last two years
compares fa.orably with the much more sedate #rowth in bank deposits of 9?F9A percent
recorded in the last fi.e years& 3utual 2unds will continue to #row as they are #ettin#
accepted as a .ehicle& Lar#e pools of are outside the pur.iew of the industry
at present$ for e"ample$ bank deposits$ pension funds$ etc& 'hese will certainly pro.ide a
source for bi# #rowth for the industry&
rospects of mutual fund industry are likely to bri#hten further in .iew of some important
reforms on the With the +4%I proposin# a corporate structure on the lines of U+ funds$
the e"istin# trustee structure will be modified to introduce professional trustee companies&
'he underlyin# ob5ecti.e is to brin# #reater democracy in 3utual 2und administration and
#i.e the unit holders the ri#ht to chan#e the trustees if they fail to perform their 5ob&
3ore fle"ibility to asset mana#ement companies is also likely so that it can char#e e"penses$
which are directly attributable to a particular scheme& In.estors will ha.e access to the
balance sheets of A3)s& Althou#h the balance sheets of most A3)s that are subsidiaries of
public listed companies are already a.ailable& %ut most forei#n 3utual 2unds are not bound
to disclose their A3) operations separately and this pro.ision would help in.estors
understand their operations better&
In the interest of the unit holders$ 3utual 2unds are now reDuired to follow minimum
international standards$ for tradin# by their employees so that there is no conflict of interest
between the transactions of employees and the 3utual 2unds and there is no front runnin#
and insider tradin#& 'he code is likely to be finali-ed soon in consultation with the
Association of 3utual 2unds of India&
 Mi$$i!
'o offer customerForiented$ inno.ati.e products by le.era#in# technolo#y to pro.ide superior
returns achie.e the hi#hest standards and attain sustained #rowth le.els throu#h
principled human resources in a focused$ transparent ethical manner to e"ceed
in.estor e"pectations&
 O<er<ie?
U'I 3utual 2und has come into e"istence with effect from 9st 2ebruary :CC;& U'I Asset
3ana#ement )ompany presently mana#es =: NA0 based domestic +4%I compliant schemes
and = Offshore funds a corpus /s&9>$ :=; crore from about 9C million in.estor
U'I 3utual 2und has a track record of mana#in# a .ariety of schemes caterin# to the needs
of e.ery class of citi-enry a period of ;B years& It has a nationwide network consistin#
>= branch offices$ ; U'I 2inancial )enters 6U2)s7 and representati.e offices in Dubai and
London& With a .iew to reach to common in.estors at district le.el$ 9A satellite offices ha.e
also been opened in select towns and districts& It has :=CC committed employees and
9C$CCC acti.e a#ents and :?? chief to sell and its schemes& It has a
wellFDualified$ professional fund mana#ement team$ who has been hi#hly empowered to
mana#e funds with #reater efficiency and accountability in the sole interest of unit holders&
'he fund mana#ers are also ably supported with a stron# inFhouse eDuity research
department& 'o ensure better mana#ement of funds$ a risk mana#ement department is also in
It has reset and up#raded transparency standards for the 3utual 2unds industry& All the
branches$ U2)s and re#istrar offices are connected on a robust I' networks to ensure costF
effecti.e Duick and efficient All these ha.e e.ol.ed U'I 3utual 2und to position as a
dynamic$ responsi.e$ restructured$ efficient$ and transparent and +4%I compliant entity&
U'I 3utual 2und has recently opened out yet another in.estor friendly .ista for its in.estors
on the Internet i&e& P3y U'I< whereby an in.estor can transact throu#h the Internet& With this
the in.estors need not .isit U'I offices$ or write letters for non monetary chan#es$ not any document submission for transactions .i-& chan#e of address$ bank particulars
mandate 6mode of payment7$ update income ta" details and .iew$ and download&
As on (anuary ;9$ :CC;$ almost all schemesHfunds ha.e outperformed the respecti.e
benchmark indices .arious periods& 'hese schemes ha.e distributed incomeHbonuses
consistently& and abo.e the faith reposed by the in.estor community on U'I has also
been reflected by fresh sales mobili-ation /s&>$:CC crores in the last @ months$
commencin# 9st (uly :CC:& U+ B> has been awarded with )N%) 3utual 2und Award for the
year for the best performance in the openFend balance fund cate#ory under the three year
U'I 3utual 2und is poised to meet the challen#es of the future with its dedicated human
resources$ .ast reser.oir of funds and ;AFyear track record& +peed$ Euality and 'ransparency
is the edifice on which it desires to stride ahead for the benefit of its in.estors&
 O<er<ie?
'he ,otak 3ahindra Group was born in 9BA> as ,otak )apital 3ana#ement 2inance
Limited& Uday ,otak$ +&A&A& into and ,otak 8 )ompany promoted this company&
Industrialists *arish 3ahindra and Anand 3ahindra took a stake in 9BA?$ and thatGs when the
company chan#ed its name to ,otak 3ahindra 2inance Limited 6,32L7& With affect from
3arch ::$ :CC;$ the company ,32L has #ot con.erted into ,otak 3ahindra %ank Limited
,otak 3ahindra Asset 3ana#ement )ompany Limited 6,3A3)7$ a wholly owned
subsidiary of ,3%L$ is the asset mana#er for ,otak 3ahindra 3utual 2und 6,3327&
,3A3) started operations in December 9BBA and has 9$9>$CCC in.estors in .arious
schemes& ,332 offers schemes caterin# to in.estors with .aryin# riskF return profiles and
was the first fund house in the country to launch a dedicated #ilt scheme in.estin# only in
#o.ernment securities&
,otak 3ahindra Asset 3ana#ement )ompany Ltd&$ a wholly owned subsidiary of ,otak
3ahindra %ank Ltd$ mana#es ,otak 3ahindra 3utual 2und 6,3327& ,otak 3ahindra
3utual 2und launched its +chemes in December 9BBA and today mana#es assets close to
/s&;CCC cr& contributed by 99>CCC in.estors in .arious schemes& ,332 has to its credit
the launchin# of inno.ati.e schemes and plans like , Gilt and 2ree Life Insurance with ,
%ond Deposit lan
 Ri$B Factr$
 3utual 2unds and securities in.estments are sub5ect to market risks and there is no
assurance or #uarantee that the of the +cheme will be achie.ed&
 As with any securities in.estment$ the NA0 of the Units issued under the +cheme can #o
up or down dependin# on the factors and forces affectin# the capital market&
 ast performance of the +ponsor or that of e"istin# schemes of the 2und does not indicate
the future performance of the +cheme&
 , ;C is only the name of the +cheme and does not in any manner indicate the Duality of
the +cheme$ future prospects or returns&
 Appreciation of the .alue of the Units issued under the +cheme can be restricted in the
e.ent of a hi#h asset allocation to cash when stocks appreciate&
 'he NA0 of the Units issued under the +cheme may be affected$ interFalia$ by chan#es in
the market interest rates$ tradin# .olumes$ settlement periods and transfer procedures&
 'a" laws may chan#e$ affectin# the return on in.estment in Units&
In the e.ent of receipt of a .ery lar#e number of redemption reDuests or .ery lar#e .alue
redemption reDuests or of a restructurin# of the +cheme<s portfolio$ there may be delays in
the redemption of Units& lease refer to the para#raph on L/i#ht to limit /edemptionL in the
)ombined Offer Document&
 Stat"tr)
,otak 3ahindra 3utual 2und has been established as a trust under the Indian 'rusts Act$
9AA:$ by ,otak 3ahindra 2inance Limited 6liability /s& NIL7 with ,otak 3ahindra 'rustee
)ompany Limited as the 'rustee and with ,otak 3ahindra Asset 3ana#ement )ompany
Limited as the In.estment 3ana#er&
 O<er<ie?
+%I 3utual 2und 6+%I 327 is one of the lar#est mutual funds in the country with an
in.estor base of ;&A million& With :C years of rich e"perience in fund
mana#ement$ +%I 32 brin#s forward its e"pertise in consistently deli.erin# .alue to
its in.estors&
+%I 32 draws its stren#th from IndiaGs Lar#est %ank +tate %ank of India and +ociXtX
General Asset Management, France.
+%I 3utual 2und is a 5oint .enture between the +tate %ank of India and +ociXtX
General Asset 3ana#ement$ one of the world<s leadin#
fund mana#ement companies that mana#es U+Y ;;C %illion worldwide&
 Cr'rate Prfi#e
In ei#hteen years of operation$ the fund has launched thirtyFtwo schemes and
successfully redeemed fifteen of them& In the process it has rewarded it<s in.estors
handsomely with consistently hi#h returns&
A total of ;&A million in.estors ha.e reposed their faith in the wealth #eneration
e"pertise of the 3utual 2und&
+chemes of the 3utual fund ha.e consistently outperformed benchmark indices and
ha.e emer#ed as the preferred in.estment for millions of in.estors and *NI<s&
'oday$ the fund mana#es /s& :CCCC crores of assets and has a di.erse profile of
in.estors acti.ely parkin# their in.estments across =C acti.e schemes&
'he fund this .ast family of in.estors by reachin# out to them throu#h network
of 9CC points of acceptance$ :? in.estor centers, 33 investor service desks
and 52 district organizers.
+%I 3utual is the first bankFsponsored fund to launch an offshore fund O /esur#ent
India Opportunities Fund.
UTI G3 Sec I!<e$t(e!t P#a!
K3Gi#t I!<e$t(e!t P#a!
Sector Allocation
!ted "o#t.Sec.
S$ort ter% !e&o.
Sector Allocation
"o#t. Securities
Sector Allocation

"o#t. Securities
.reasury Bi++s
 I!ter'retati!
Gilt fund refers to those funds in which in.est only in Go.t& securities includin# call money$
'reasury bill and repos of .aryin# maturities with a .iew to #eneratin# credit risk free
return& & Accordin# to the #raph study we can see that companies has different in.estment
pattern& U'I has allotted @9N Go.t& +ecurities 8 :BN in Net )urrent Assets& Where as ,otak
has allotted :=&:N in Go.t& +ect&$ ?:&AN in )ollateral %orrowin# and ?&AN in 'reasury %ills
8 ?&:N in N)A& +%I has in.ested 9BN in Go.t& +ec&$ :?N in +hort 'erm Deposit and >>N
in N)A&
Sector Allocation
9% 2%
/'!0 MF"
(1'S "11!s
10% 9%
/'! 431!5(
(100) B131
/'! ()4 "11!S
(1'S '1' !53)B02S
)5.1 )'(/00)3/2S
42.31 431!5(.S
Sector Allocation
(ons "oods
/'! MF"
 I!ter'retati!
As from the #raph we can see that different company has adopted different pattern of
in.estment& U'I 3N) LAN has in.ested ;:N in Indl 3f#$ :>N in )ons #oods$:CN in
Others$99N in harma$ BN in Automobiles$:N in cash& ,O'A, 3N) 2UND has in.ested
A:&@BN in 4Duity specific sector$ C&9;N in Debt Instruments$:&9AN in 3oney market
instruments9>&;9N in 'erm Deposits &+%I 23)G LAN has in.ested ?A&@BN in )ons
#oods$@&:9N in Indu 32G$@&>;N in 3isc$=&>BN in 'e"tiles$ 99&A@N in )ash&
Sector Allocation
S2(53/./S2! !2B.
Sector Allocation
!eb = Bonds
Bi++ 3ediscountin-
Sector Allocation
'on8(on#. !eb.
Sec. !ebt
S$ort .er% de&o.
 I!ter'retati!
As from the #raph we can see that different company has adopted different pattern of
in.estment& U'I LIEUID LAN has in.ested ;:N in )H)D$ :?N in N)A$9@N in Deposits
8 :>N in Others& ,O'A, LIEUID 2UND has in.ested =:&=N in )H)D$:B&9N in Deb 8
%onds$ and :A&>N in Others & +%I LIEUID 2UND has in.ested =BN in )H)D$:9N in N)A$
9@N in +hort 'erm Deposits and 9;N in Others&
Sector Alloction
5% 1%
0on- .er% !ebt.
"o#t Sec.
Sec. !ebt
Sector Allocation
!ebt /nst 8 18%
Sot,are 8 11.2%
MM/ 8 6.5%
.er% !e&o = (o++ Borro,in- 8 5.5%
Frrous Meta+s 8 5.1%
/ndust (a& "oods 8 5.1%
Banks 8 4.8%
4$ar%a 8 4.6%
4etro 4roducts*.9%
1t$ers 29.6%
Sector Alloction
)uto%obi+es 8 2.5% (e%ent 4roducts 8 *.55% (onstruction 8 8.41%
(onsu%er "oods 8 *.55% 2ner-y 8 9.51% Finan Ser#ices 8 4.*%
/ndus Ser#ices 8 8.26% /. 8 11.21% Media = 2nter 8 *.79%
4$ar%a 8 1.52% .e+eco% 5.09% .e@ti+es8 1.96%
(as$ 8 **.2*% Misc 8 1.57%
 I!ter'retati!
%alanced fund refers to those funds in which there is a #ood mi" of eDuity and debt&
Accordin# to the #raph study we can see some company has eDual ratio of eDuity and debt$
but some do follows eDual portion pattern& U'I has in.ested =CF@>N in 4Duity and balance in
Debt& Where as ,otak 3ahindra has in.ested >9N to @C N in 4Duity and ;CN to >CN in non
4Duity ortion& +%I has in.ested at least >CN in 4Duity and 4Duity /elated Instruments and
upto =CN in Debt Instruments and %alance in 33I&
Sector Allocation
9% 9%
/nd+ M- /. 2ner-y .e+eco% Fin Ser#ices
(ons "oods (e%ent 4rods )uto%obi+es (as$ 1t$ers
Sector Allocation
/ndu (a& "oods 8 10.7% Sot,are 8 8.2% Media = 2nter 8 6.7=
(onstruction 8 6.*% MM/ 8 6.2% /ndus 4rod 8 6.*%
.e+ Ser#ices 8 5.4% 4etro 4rod 8 5.*% (ons 'on8!ur "oods 8 5.2%
Banks 8 4.9% 1t$ers 8 *5.1%
Sector Allocation
)uto%obi+es 8 2.57% (e%ent 4rod 8 7.95% ($e%ica+s 8 .76% (onstruction 8 4.24%
(ons -oods 8 2.*1% 2ner-y 8 7.9*% Fert = 4est 8 1.6% Finan Ser# 8 *.20%
/nd+ M- 8 1.52% /. 8 7.64% Media = 2nter 8 2.69% Meta+s 8 5.8*%
Misc 8 0.46% 4a&er 80.52% 4$ar%a 8 *.07% Ser#ices 8 0.47%
.e+eco% 8 *.81% .e@ti+es 8 0.15% (as$ 8 **.27%
 I!ter'retati!
As from the #raph we can see that different company has adopted almost similar pattern of
in.estment& U'I 'AK LAN has in.ested ACN in 4Duity and 4Duity related instruments and
:CN in others& ,otak has in.ested in ACN to 9CCN in 4Duity and 4Duity related instruments
and CF:CN& +%I has in.estedACF9CCN in 4Duity and CF:CN in 3oney 3arket Instruments&
In the .ery short time of two month it is almost impossible to sur.ey the city like AG/A&
+o$ I decided to #o only in the “osh /esidential Area!& Despite the small area$ I ha.e
sufficient data& I belie.e that in spite of short time my result will be accurate comparin# to
time& 'he conclusion of the whole sur.ey is as followsJ
 'he ma"imum ?CN of the respondents know about 3utual funds&
 'he =>N of the respondents do not know about ,ar.y +tock %rokin# L'D&
 'he ma"imum in.estors prefer to in.est their in Insurance 8 2D<s&
 In mutual funds only ;>N of the in.estors prefer to in.est&
 Only >=N of the in.estors ha.e in.ested in mutual fund till now&
 'he past performance and the #oodwill of the company are the factors that affect
mostly to in.estors to in.est in a particular mutual fund&
 'he ma"imum in.estors prefer to in.est in monthly income plans and the second
preference is income schemes&
 'he ma"imum in.estors prefer to in.est in Debt 'ypes 2und in mutual funds&
A Duestionnaire is the most common research instrument 6the other are inter.iew #uides$
attitude scales and tabulation sheets7&
A research instrument should a.oid bias and de.elop a$ which will facilitate effecti.e
A Duestionnaire is a set of Duestions with or without blanks space for recordin# answers& 'he
Duestions can secure the rele.ant facts or opinions from the informed 8 interested
respondents included in the sample sur.ey&
'he Duestionnaire method has considerable .ersatility& It is used to obtain data on almost any
type of marketin# problem& In desi#nin# a Duestionnaire$ the utmost care is taken to build the
structure 6no& or type of Duestion7$ and the wordin# and seDuencin# of Duestions& A useful
Duestionnaire should be characteri-ed by the followin# #eneral rules or #uidelines&
Euestionnaire should be short$ simple$ easily understandable$ direct$ pointed and well phrased
tend ha.e one interpretation or meanin#& 'he meanin# of all the Duestions should be ob.ious
to all the respondents& 4asy to answer Duestion are always desirable& A.oid Duestions$ which
make e"cessi.e demands on memory and personnel insi#ht& No Duestion should ta" the
memory of the respondent&
4.ery Duestionnaire must e"plain the purpose of the inDuiry in order to stimulate interest and
reDuest the respondent to offer full coFoperation in answer to the Duestions&
Euestions that cannot or would not or need not be answered must be e"cluded& 2or instance$
personal Duestion about a#e$ the income le.el$ status$ health$ marital relation etc&$ should not
be included unless these aatr really .ital to the study& +uch classificatory Duestions on a#e$
se"$ income$ education$ occupation and so on are #enerally placed at the end of the
Duestionnaire& Women do not like to disclose their a#e& eople do not like Duestions probin#
into their finances& No Duestion on personal and intimate sub5ects should be asked$ for it
encroaches on the pri.acy of the indi.idual& Euestion a stron# emotional toe or
personal may not recei.e true answers&
W)!t +oes ! M*t*!( F*"+ +o wit) i"vestorJs -o"eK
Anybody with an in.estible surplus of as little as a few hundred rupees can in.est in mutual
funds& 'he in.estors buy units of a fund that best suit their in.estment and future
needs& A 3utual 2und in.ests the pool of money collected from the in.estors in a ran#e of
securities comprisin# eDuities$ debt$ money market instruments etc& after char#in# for the
A3) fees& 'he income earned and the capital appreciation reali-ed by the scheme$ are shared
by the in.estors in same proportion as the number of units owned by them&
W) +o M*t*!( F*"+s %o-e o*t wit) +i88ere"t s%)e-esK
A 3utual 2und may not$ throu#h 5ust one portfolio$ be able to meet the in.estment
of all their Unit holders& +ome Unit holders may want to in.est in riskFbearin# securities such
as eDuity and some others may want to in.est in safer securities such as bonds or #o.ernment
securities& *ence$ the 3utual 2und comes out with different schemes$ each with a different
in.estment ob5ecti.e&
In case of mutual funds$ the in.estments of different in.estors are pooled to form a common
in.estible corpus and #ainHloss to all in.estors durin# a #i.en period are same for all in.estors
while in case of portfolio mana#ement scheme$ the in.estments of a particular in.estor
remains identifiable to him& *ere the #ain or loss of all the in.estors will be different from
4ach other&
W)!t is t)e +i88ere"%e #etwee" Growt) P(!" !"+ Divi+e"+ Rei"vest-e"t P(!"K
Under the Growth lan$ the in.estor reali-es the capital appreciation of hisHher in.estments
while under the Di.idend /ein.estment lanI the di.idends declared are rein.ested
automatically in the scheme&
W)!t is ! Port8o(ioK
A portfolio of a mutual fund scheme is the basket of financial assets held by that scheme& It
comprises of in.estments in a .ariety of securities and asset classes& 'his di.ersification helps
reduces the o.erall risk& A mutual fund scheme states the kind of portfolio it seeks to
construct as well as the risks in.ol.ed under each asset class&
W)!t is ! (o!+K
'he char#e collected by a 3utual 2und from an in.estor for sellin# the units or in.estin# in
When a char#e is collected at the time of enterin# into the scheme it is called an 4ntry load or
2rontFend load or +ales load& 'he entry load percenta#e is added to the NA0 at the time of
allotment of units&
An 4"it load or %ackFend load or /epurchase load is a char#e that is collected at the time of
redeemin# or for transfer between schemes 6switch7& 'he e"it load percenta#e is deducted
from the NA0 at the time of redemption or transfer between schemes&
+ome schemes do not char#e any load and are called LNo Load +chemesL
W)!t is ! Re+e-'tio"HRe'*r%)!se Pri%eK
/edemption or /epurchase rice is the price at which an in.estor sells back the units to the
3utual 2und& 'his price is NA0 related and may include the e"it load&
W)!t is t)e Re'*r%)!se or B!%. E"+ Lo!+K
It is the char#e collected by the scheme when it buys back the units from the unit holders&
W)!t is ! &wit%)i"1 F!%i(itK
+witchin# facility pro.ides in.estors with an option to transfer the funds amon#st different
types of schemes or plans& In.estors can opt to switch units between Di.idend lan and
Growth lan at NA0 based prices& +witchin# is also allowed intoHfrom other select openF
ended schemes currently within the 2und family or schemes that may be launched in the
future at NA0 based prices&
While switchin# between Debt and 4Duity +chemes$ one has to take care of e"it and entry
loads& +witchin# from a Debt +cheme to 4Duity scheme an entry load while the .ice
.ersa does not in.ol.e an entry load&
W)o is ! Re1istr!rK
A /e#istrar accepts and processes unit holdersG applications$ carries out communications
with them$ their #rie.ances and dispatches Account +tatements to them& In
addition$ the re#istrar also and processes redemption$ repurchase and switch
reDuests& 'he /e#istrar also maintains an updated and accurate re#ister of unit holders of
the 2und and other records as reDuired by +4%I /e#ulations and the laws of India& An
in.estor can #et all the abo.e facilities at the In.estor )enters of the /e#istrar&
W)o is ! %*sto+i!"K
)ustodian is the a#ency which will ha.e the physical possession of all the securities
purchased by the mutual fund&
W)o is ! Re1istr!rK
A /e#istrar accepts and processes unit holdersG applications$ carries out communications
with them$ their #rie.ances and dispatches Account +tatements to them& In
addition$ the re#istrar also and processes redemption$ repurchase and switch
reDuests& 'he /e#istrar also maintains an updated and accurate re#ister of unitholders of
the 2und and other records as reDuired by +4%I /e#ulations and the laws of India& An
in.estor can #et all the abo.e facilities at the In.estor )enters of the /e#istrar&
W)o is ! %*sto+i!"K
)ustodian is the a#ency which will ha.e the physical possession of all the securities
purchased by the mutual fund&
W)!t is CD&CK
)ontin#ent Deferred +ales )har#e 6)D+)7 is a char#e imposed on unit holders e"itin# from
the scheme within = years of entry& It is intended to enable the A3) to e"penses
incurred for promotion or propa#ation of the scheme&
Or +ometimes the sellin# e"penses of the fund are not char#ed to the fund directly but are
reco.ered from the unit holders they redeem their units& 'his load is called a )D+)
and is in.ersely proportional to the period of unit holdin#&
W)!t is t)e +i88ere"%e #etwee" %o"ti1e"t +e8ere+ s!(es (o!+ !"+ !" eFit (o!+K
)ontin#ent Deferred +ales char#e 6)D+)7 is a char#e imposed when the units of a fund are
redeemed durin# the first few years of ownership& Under the +4%I /e#ulations$ a fund can
char#e )D+) to unit holders e"itin# from the scheme within the first four years of entry&
4"it load is a fee an in.estor pays to a fund he redeems hisHher units& As per +4%I
re#ulations$ the ma"imum e"it load applicable is @N& 'here is a further stipulation by +4%I
that the entry load and e"it load put to#ether cannot e"ceed @N of the sale price&
Does o*t 'er8or-!"%e o8 ! #e"%)-!r. i"+eF !(w!s %o""ote 1oo+ 'er8or-!"%eK
No$ it is not necessary that out performance of a benchmark inde" always connotes #ood
performance& 'he .olatility does not permit the in.estor to rely on one factor only& 'he inde"
performance is .olatile and may be dri.en by a few scrips only$ which may not be .ery
reflecti.e& +o it is better to keep other factors like risk ad5usted returns 6.olatility of returns7
and NA0 mo.ement in mind while decidin# to in.est in a fund&
W)!t !re eL*it -!r.etsK
'hese are markets for financial assets that ha.e lon# or indefinite maturity i&e$ stocks&
'ypically such markets ha.e two se#ments F primary and secondary markets& New issues
are made in the primary market and outstandin# issues are traded in the secondary market
6i&e&$ the .arious stock e"chan#es7
'here are three ways a company can raise capital in the primary market F
• P*#(i% Iss*e 7 +ale of fresh securities to the public
• Ri1)ts Iss*e 7 'his is a method of raisin# capital e"istin# shareholders by offerin#
additional securities to them on a preFempti.e basis&
• Priv!te P(!%e-e"t 7 Issuers make direct sales to in.estor #roups i&e&$ there is no public
RETURN 3dt 3dt hi#h Nil Nil 3dt Nil
RI&K 3dt Ne#li#ible *i#h Nil Nil
LIIUIDITY *i#h *i#h 2airly hi#h A.# A.# Low A.#
+ec ACl
+e AA
+ec AA
*i#h Nil
0ery *i#h *i#h
2air A.#
Low *i#h *i#h
*i#h A.#
3ore Less Limited Nil Less Less Nil
+hort Lon# +hort
Lon# +hort
*i#h Nil *i#h Nil Nil *i#h *i#h
A##revi!tio"s *se+ i" !#ove t!#(e73
A.# O A.era#e$ 3dt O moderate
'he in.estor do not puts all his e##s in one basket& In.estin# in a sin#le security is risky than
in.estin# in portfolio& ortfolio is a #roup of asset that is owned by in.estors$ as the return to
the in.estor is based on the future of sin#le assets&
'he mutual fund has #rown at an annual rate of BN in the last > years and is e"pected to
double the current assets under mana#ement& *ence it is a wise decision to in.est the money
in mutual fund scheme because the industry is on a #rowth&
3utual fund is an in.estment tool$ which is unlike banks$ insurance and other
schemes& 'herefore the return on the in.estment from the mutual fund cannot be compared
with other tools in the market& In this way mutual fund holds an upper ed#e&
'he mutual fund industry needs to educate the public about the fact that mutual funds are
in.estment tools where returns to the in.estors depend on a number of factors& At times$
returns can be hi#h and at times they can be ne#ati.e &'he future #rowth of the mutual fund
industry lar#ely depends on the misFconception in the in.estor community that
mutual funds are not tools&
%OO,+ NA34 AU'*O/ NA34
3U'UAL 2UND+ O2 INDIA +&,/I+*NA3U/'*1
/4+4A/)* 34'*ODOLG1 )&/&,O'*A/I
www&moneycontrol&com www&kar.y&com
www&utimf&com www&bseindia&com
www&sbimf&com www&nseindia&com
www&capitalmarket&com www&kmutual&com
www&amfiindia&com www&sebi&com
,A/01 %AZAA/ %A'4IN ,A/01 '*4 2INAOLI+
'*4 2INAN)IAL 4K/4++ Ad.isor<s GUID4 6,A/017
I95 How +o o* -!"!1e o*r i"vest-e"tK
Friend =
Friend = 3e+ati#es
I=5 A-o"1 t)e 8o((owi"1 i" w)i%) o8 t)e 8i"!"%i!( 'ro+*%t +o o* i"vestK
F!<s.A *0%
a+ 2stateC.A
s.A 5%
1t$ers.A 2%
Mutua+ Funds.
I?5 Do o* ."ow t)!t o* "ee+ to )!ve !" i"s*r!"%e o8 !t (e!st 9A ti-es2 o*r 1ross
!""*!( i"%o-e to #e !+eL*!te( i"s*re+K
?esA 25%
'oA 75%
Series1 25% 75%
?es 'o
I<5 Are o* !+eL*!te( i"s*re+K I8 es t)e" w)i%) %o-'!" is %overi"1 t)e ris.K
?esA 40%
'oA 60%
?es 'o
Series1 40% 60%
?es 'o
.ata )i-
)#i#a 0ie
BaDaD )++iance
.ata )i-
)#i#a 0ie
I;5 Do o* i"vest i" IPO6s /P*#(i% Iss*es0K
?esA 55%
'oA 45%
?es 'o
IB5 C!" o* "!-e ! 8ew IPO6s i" w)i%) o* )!ve re%e"t( i"veste+K
Ey+o-A 15%
340A *0%
/93 4ri%eA
/93 4ri%e
IC5 Do o* )!ve ! +e3-!t M tr!+i"1 !%%o*"t /8or s)!resH%o--o+itiesHFMO0K I8 es
t)e" wit) w)i%) 8i"!"%i!( i"ter-e+i!ries +o o* )!ve t)e !%%o*"tK
?esA 45%
'oA 55%
?es 'o
I:5 I" w)!t r!tio +o o* i"vest i" eL*it M +e#tsK
2Fuity A
!ebtsA 65%
Series1 35% 65%
Equity Debts
7ar#yA 12%
3e+i-areA *0%
/ndia Bu++sA *5%
1t$ersA 2*%
/ndia Bu++s
I9>5 Do o* ."ow !#o*t t)e M*t*!( F*"+sK
?esA 72
'oA 48
?es 'o
I995 H!ve o* ever i"vest i" M*t*!( F*"+sK
?esA 45
'oA 27
?es 'o


I9=5 Do o* ."ow !#o*t t)e +i88ere"t t'es !"+ s%)e-es o8 M*t*!( F*"+sK
?esA 55
'oA 17
?es 'o
I9?5 I8 o* i"vest i" M*t*!( F*"+s2 i" w)!t t'es o8 8*"+s +o o* i"vestK
2FuityA 15%
!ebt FundsA
FundsA 20%
2ndedA 17%
FundsA 2*%
!i#ersiied 2Fuity
!ebt Funds
Ba+anced Funds
(+ose 2nded
Sector Funds
I9<5 Are o* !w!re t)e #e"e8it o873
!0 &IP #0 &TP %0 &WP
?esA 55
'oA 65
?es 'o
I9A5 Are o* )!vi"1 !" o" 1oi"1 &IPK
?esA 54
'oA 66
?es 'o


I9;5 H!ve o* )e!r+ !#o*t t)e KARVYK
?esA 87
'oA **
?es 'o


I9B5 H!ve o* ever !v!i(e+ servi%es o8 KARVYK
?esA 69
'oA 51
?es 'o
I9C5 W)i%) !(( servi%es o8 KARVY )!ve o* )e!r+ !#o*tK
!8Mat );c
.radin- );c
4an (ard
!8Mat );c
.radin- );c
Mutua+ Funds
4an (ard
I9:5 Are o* !w!re t)!t KARVY 'rovi+es ."ow(e+1e #!se+ i"vest-e"t !+visor
servi%es 8or !(( o*r i"vest-e"t M 8i"!"%i!( Nee+sK
?esA 46
'oA 41
?es 'o
I=>5 Do o* )!ve !" o"(i"e /we#3#!se+0 tr!+i"1 AH% /8or &to%.sHCo--o+ities0K
?esA 25
'oA 95
?es 'o
I=95I8 "o2 wo*(+ o* (i.e to )!ve o*r o"(i"e tr!+i"1 AHC 8or
&to%.sHCo--o+itiesHM*t*!( F*"+sHIPO6s 8ro- o*r ow"'K
?esA 6*
'oA 57
?es 'o
I==5 Wo*(+ o* (i.e to #* ! )o*se or 8(!t or s)o'K
?esA 26
'oA 94
?es 'o
I=?5 Do o* )!ve ! PAN CARDK
?esA 92
'oA 28
?es 'o
I=<5 Wo*(+ o* (i.e ! 'erso"!( 8i"!"%e eFe%*tive o8 KARVY to visit o* !"+ )e(' o*
i" -!"!1i"1 o*r 8i"!"%es H i"vest-e"t i" ! #etter -!""erK
?esA 90
'oA *0
?es 'o
)ON'A)' NO[[[[[[[[[[[[[[[[[[[[[[[[[[[[[[&&&
I95 How +o o* -!"!1e o*r i"vest-e"tK
a7 +elf&
b7 )onsult e"perts like %roker$ 2inancial Ad.isors&
c7 )onsult 2riend$ /
d7 Others
I=5 A-o"1 t)e 8o((owi"1 i" w)i%) o8 t)e 8i"!"%i!( 'ro+*%t +o o* i"vestK
a7 3utual 2unds
b7 Insurances&
c7 2D<s&
d7 roperty 6/eal 4state7&
e7 +hares&
f7 )ommodities&
#7 Others&
I?5 W)i%) is o*r -ost 're8erre+ 8i"!"%i!( i"str*-e"ts !"+ w)K
I<5 Do o* ."ow t)!t o* "ee+ to )!ve !" i"s*r!"%e o8 !t(e!st 9A ti-es2 o*r 1ross
!""*!( i"%o-e to #e !+eL*!te( i"s*re+K
a7 1es b7 No
IA5 Are o* !+eL*!te( i"s*re+K I8 es t)e" w)i%) %o-'!" is %overi"1 t)e ris.K
I;5 Do o* )!ve ! -e+i%!( 'o(i% to %over t)e -e+i%!( !"+ )e!(t) "ee+s o8 o*r 8!-i(K
I8 "o wo*(+ o* (i.e to )!ve o"eK
a7 1es b7 No
IB5 Do o* i"vest i" IPO6s /P*#(i% Iss*es0K
a7 1es b7 No
IC5 C!" o* "!-e ! 8ew IPO6s i" w)i%) o* )!ve re%e"t( i"veste+K
I:5 Do o* )!ve ! De3-!t M Tr!+i"1 !%%o*"t /8or &)!reHCo--o+itiesHFMO0K I8 es
t)e" wit) w)i%) 8i"!"%i!( i"ter-e+i!ries +o o* )!ve t)e !%%o*"tK
I9>5 I" w)!t r!tio +o o* i"vest i" eL*it M +e#tK
I995 Do o* ."ow !#o*t t)e M*t*!( F*"+sK
a7 1es b7 No
I9=5 H!ve o* ever i"vest i" M*t*!( F*"+sK
a7 1es b7 No
I9?5 Do o* ."ow !#o*t t)e +i88ere"t t'es !"+ s%)e-es o8 M*t*!( F*"+sK
b7 1es b7No
I9<5 I8 o* i"vest i" M*t*!( F*"+s2 i" w)!t r!tio +o o* i"vestK
a7 Di.ersified 4Duity b7 Debt 2unds c7 %alanced 2unds
e7 )losed 4nded f7 +ector 2unds
I9A5Areo* !w!re t)e #e"e8it o8
a7 +I 6+ystematic In.estment lan7
b7 +' 6+ystematic 'ransfer lan7
c7 +W 6systematic Withdrawl lan7
I9;5 Are o* )!vi"1 o"1oi"1 &IPK
a7 1es b7 No
I9B5 H!ve o* )e!r+ !#o*t t)e KARVYK
a7 1es b7 No
I9C5 H!ve o* ever !v!i(e+ servi%es o8 KARVYK
a7 1es b7 No
I9:5 W)i%) !(( servi%es o8 KARVY )!ve o* )e!r+ !#o*tK
I=>5 Are o* !w!re t)!t KARVY 'rovi+es ."ow(e+1e #!se+ i"vest-e"t !+visior
servi%es 8or !(( o*r i"vest-e"t M 8i"!"%i!( "ee+sK
a7 1es b7 No
I=95 Do o* )!ve !" o"(i"e /we#3#!se+0 tr!+i"1 AHC /8or&to%..sHCo--o+ities0K
a7 1es b7 No
I==5 I8 "o2 wo*(+ o* (i.e to )!ve o*r o"(i"e tr!+i"1 AHC 8or i"vesti"1 i"
sto%.sH%o--o+itiesHM*t*!( F*"+sHIPO6s 8ro- o*r ow"'K
a7 1es b7 No
I=?5 Wo*(+ o* (i.e to #* ! Ho*se or F(!t or &)o'K
a7 1es b7 No
I=<5 Do o* )!ve ! P!" C!r+K
a7 1es b7 No
I=A5 Wo*(+ o* (i.e 'erso"!( Fi"!"%e EFe%*tives o8 KARVY to Visit o* !"+ )e(' o*
i" -!"!1i"1 o*r 8i"!"%esH i"vest-e"t i" ! #etter -!""erK
a7 1es b7 No
If 1es then DA'4[[[[&& 'I34[[[[[[[