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A Project Report








Roll No: 674/08, FM 034









I, Mr. /Ms. Akshay D. Buggewar Hereby declare that this project report is the record of
authentic work carried out by me during the period from 4th May 2009 to 2nd July 2009
and has not been submitted earlier to any university or institute for the award of any
degree/diploma etc.

Name of the Student: Akshay D. Buggewar


Company Letter Head


This is to certify that the organizational study project is a bonafide and sincere work of
Mr. /Ms Akshay D. Buggewar is original and has been made under my supervision in
partial fulfillment of requirement for the award of PG Programme for the period from
4th May 2009 to 2nd July 2009. I am pleased to say that his/her performance during this
period was: Poor/ Satisfactory/ Good/ Excellent).


Mr. Ambuj Mishra

Company Guide



Institute Letter Head


This is to Certify that Mr. /Ms. Akshay D. Buggewar of IAEER’s Pune Institute of
Business Management has successfully completed the project work titled in partial
fulfillment of requirement for the completion of PG course as prescribed by PIBM.

This project report is the record of authentic work carried out by him/her during the
period from 4th May 2009 to 2nd July 2009 in which He/She has worked under my

________________ ____________________

Prof. Prasad V. Bhat Prof. Jagdish Khadilkar

Project Guide: Director Academics:



With regard to my Project “Role of mutual funds in Indian Economy” with IDFC
Mutual Fund I would like to thank each and every one who offered help, guideline and
support whenever required. First and foremost I would like to express gratitude to
Regional manager Mr. Ambuj Mishra IDFC MF AMC Nagpur, and other staffs for
their support and guidance in the Project work.. I am extremely grateful to my college
director and inspiration for me Mr. Ramanprit sir and my internal guide, Prof. Prasad
Bhat for their valuable guidance and timely suggestions. I would like to thank all faculty
members of Pune Institute Of Business Management for the valuable guidance& support.
I would also like to extend my thanks to my members and friends for their
support. And lastly, I would like to express my gratefulness to the parent’s for seeing me
through it all.

Akshay D. Buggewar


Topics Page No.


1. Objectives And Scope Of The Project.

2. Background Introduction / Synopsis Of The

a) Company profile,
b) Basic introduction of the project,
c) Organizational hierarchy,
d) Department.

Methodology Used for the study
a) Methods & Tools adopted for study,
b) Data collection,
c) Analysis of Data
d) Pictorial / Graphic / pie charts, presentation
of data.

Observations / Findings.

5. Limitations.


Suggestions / Recommendations


Chapter: - 1



India is a one of the fastest developing country. It’s growth rate is increasing year by
year, after Liberalization and Globalization there is a exponential growth in Indian GDP
Indian GDP rate is second highest after china due to foreign direct investments and
foreign institutional investments but some extent due to our spending and conversion of
saving of Indian public into Investment so that the companies utilize those funds for the
productive purpose and hence growth in GDP. As we know that most of the Indian
citizen still likes to keep their savings in a unproductive forms there is a huge scope for
growth in Indian economy. Mutual Funds are the good instruments for mobilize the

Percentage change in GDP of Asia, India and China during 1990-2005

Brief introduction of Mutual Funds:-

Mutual fund is a trust that pools the savings of a number of investors who share a
common financial goal. This pool of money is invested in accordance with a stated
objective. The joint ownership of the fund is thus “Mutual”, i.e. the fund belongs to all
investors. The money thus collected is then invested in capital market instruments such as
shares, debentures and other securities. The income earned through these investments and
the capital appreciations realized are shared by its unit holders in proportion the number of
units owned by them. Thus a Mutual Fund is the most suitable investment for the common
man as it offers an opportunity to invest in a diversified, professionally managed basket of
securities at a relatively low cost. A Mutual Fund is an investment tool that allows small
investors access to a well-diversified portfolio of equities, bonds and other securities.
Each shareholder participates in the gain or loss of the fund. Units are issued and can be
redeemed as needed. The funds Net Asset value (NAV) is determined each day.

Investments in securities are spread across a wide cross-section of industries and

sectors and thus the risk is reduced. Diversification reduces the risk because all stocks
may not move in the same direction in the same proportion at the same time. Mutual
fund issues units to the investors in accordance with quantum of money invested by
them. Investors of mutual funds are known as unit holders.

Some facts for the growth of mutual funds in India

1. 100% growth in the last 6 years.

2. Numbers of foreign AMC’s are in the queue to enter the Indian markets like
Fidelity Investments, US based, with over US$1trillion assets under management
3. Our saving rate is over 23%, highest in the world. Only channelizing these
savings in mutual funds sector is required.
4. We have approximately 29 mutual funds which is much less than US having more
than 800. There is a big scope for expansion.
5. 'B' and 'C' class cities are growing rapidly. Today most of the mutual funds are
concentrating on the 'A' class cities. Soon they will find scope in the growing
6. Mutual fund can penetrate rural like the Indian insurance industry with simple
and limited products.
7. SEBI allowing the MF's to launch commodity mutual funds.
8. Emphasis on better corporate governance.
9. Trying to curb the late trading practices.
10. Introduction of Financial Planners who can provide need based advice.


My objective of making this project to create awareness of mutual funds and what is happening
in mutual funds. How they can use resources for a development of country and individuals. Many
areas are not yet been covered by Indian mutual fund industry for that objectives are following.

• Creating awareness of mutual funds among people.

• Guiding them for better investment option.
• Creating awareness about how mutual funds can contribute to Indian economy.
• How mutual funds can use to achieve individual financial goals.
• How mutual funds are beneficial for common people.
• Studying mutual funds in detail.
• Different Individual Financial Advisors, National Distributors and Bank’s
response towards IDFC Mutual Fund.

Chapter: - 2

Background Introduction / Synopsis Of The Project.

A) Company profile:-


IDFC is a parent company of IDFC Mutual Fund. IDFC Mutual Fund took over the
Standard Chartered Mutual Fund in 2006 and then it is known as IDFC MF and the
current AUM is over 22708.77 cr.
IDFC is a leading private sector diversified financial institution established by a
consortium of strong global and local institutions with the support and sponsorship of the
Government of India.

A majority of IDFC’s shareholding (67% as of March 31, 2008) is held by reputed global
stalwarts that include respectable names like Government of India, International Finance
Corporation (IFC) - a member of the World Bank Group, Government of Singapore,
AIG, Morgan Stanley, Goldman Sachs, Citigroup, JP Morgan among others. The best
Indian financial institutions such as HDFC, LIC, SBI, and IDBI are owners in IDFC,
making it an institution of high repute and standing.

Mutual Fund IDFC Mutual Fund

Setup Date Mar-13-2000

Incorporation Date Dec-20-1999
Sponsor Infrastructure Development Finance Company Limited (IDFC)
Trustee IDFC AMC Trustee Company Private Limited
Chairman Dr. Rajiv Lall
CEO / MD Mr. Naval Bir Kumar – President
CIO Mr. Kenneth Andrade
Compliance Officer Ms. Jyothi Krishnan
Investor Service OfficerMr. Praveen Bhatt
Assets Managed Rs. 22708.77 crore (Jul-31-2009)

Auditors B. S. R. & Co. Chartered Accountants

Custodians Deutsche Bank Limited AG.
Registrars Computer Age Management Services Pvt. Ltd.
Address One India Bulls Centre, 841, Jupiter Mills Compound, S. B.
Marg, Elphinstone Road (W), Mum. - 400013
Telephone Nos. 022-2266289999
Fax Nos. 022-24215052


IDFC Mutual Fund is sponsored by Infrastructure Development Finance Company
Limited (IDFC). The sponsor is the settler of the Mutual Fund Trust. The sponsor has
entrusted a sum of Rs. 30,000 to the Trustees as its contribution towards the corpus of the
Mutual Fund.
IDFC is a leading diversified financial institution providing a wide range of financing
products and fee-based services with infrastructure as its focus area. IDFC’s key
businesses include project finance, investment banking, asset management, principal
investments and advisory services. IDFC also works closely with government entities
and regulators in India to advise and assist in formulating policy and regulatory
frameworks that support private investment and public-private partnerships in
infrastructure development. IDFC was established in 1997 as a private sector enterprise
by a consortium of public and private investors and operates as a professionally managed
commercial entity.
IDFC listed its equity shares in India pursuant to an initial public offering in August
2005. As at December 31, 2007, IDFC’s shareholders included the Government of India -
20%, foreign investors (including Khazanah National, IFC, CDC, Morgan Stanley,
Goldman Sachs and Citigroup among others) - 49% and public / others 31%. As on
December 31, 2007 IDFC had an asset base of over USD 6.5 billion, net worth of USD
1.4 billion and a market capitalization of USD 7.5 billion.

Financial Performance of the Sponsor (past three years) (in Rs. crores):

Particulars 31.03.08 31.03.07 31.03.06

Net Worth 5454.38 2882.03 2544.19
Total Income 2532.42 1505.74 1002.36
Profit after tax 669.17 462.87 375.64
Assets Under Management 2545 2671 2551
( under its private equity business)


IDFC determined to construct a comprehensive asset management business that consists
(i) private equity investments through IDFC Private Equity Company Limited
(ii) project equity through IDFC Project Equity Company Limited, and
(iii) public markets investment advisory services through IDFC Investment Advisors
IDFC Private Equity manages a corpus of US$ 630 million and is India’s largest and
most active private equity fund focused on infrastructure. The two funds under
management are India Development Fund (IDF) and IDFC Private Equity Fund II.
IDFC, along with Citigroup and India Infrastructure Finance Company Limited (IIFCL)
launched a landmark US$ 5 billion initiative for financing infrastructure projects in India.
The equity fund will be solely managed by IDFC.
IDFC plans to raise approximately $1.7 billion in private and project equity funds
focused on infrastructure. The objective is to build a large asset management platform
focused on private investments and public markets through a variety of domestic and
offshore products.


Reliance Mutual Fund 63213.5

ICICI Prudential Mutual Fund 61566.4

UTI Mutual Fund 51068.81

HDFCMutual Fund 45408.41

Birla Sunlife Mutual Fund 35228.05
SBI Mutual Fund 25377.36
IDFCMutual Fund 13611.92

LICMutual Fund 11168.38

others 220737.35


Name Age/Qualification
Dr. Rajiv Lall 51 Years /

B.A.(Hons) with Politics, Philosophy, Economics from Oxford University,

UK. Ph. D. with Economics from University of Columbia, USA.

Dr. R H. Patil 71 Years / M.A, Ph. D. (Economics)
Mr. Pradip 72 Years / B.A, B.Com, LLB

Mrs. Bakul Patel 70 Years / B.Sc. (Microbiology & Chemistry), Master of Social Work,

(Tata Institute of Social Sciences, Bombay), Chartered Secretary,

Chartered Institute of Companies Secretary, U.K.







On March 31st, 2008, IDFC’s balance sheet was Rs. 27921 Crores, net profit Rs. 742
Crores, net worth Rs. 5593 Crores and market capitalization Rs. 19500 Crores.

Project Finance
IDFC MF core business is debt financing for infrastructure projects

Principal Investment
IDFC MF add value as Principal investors in strategic, treasury and infrastructure related

Financial Markets and Investment Banking

IDFC MF have expertise in debt and equity capital markets, structured finance,
investment banking and Institutional broking and research through IDFC-SSKI.

Advisory services
Corporate and Government advisory, Public-Private partnership and Policy Advisory.

Asset Management
The asset management business manages third party funds and comprises:

(i) Private equity investments through IDFC Private Equity Company Limited.

(ii) Project level equity investments through IDFC Project Equity Company

(iii) Public markets investment advisory services through IDFC Investment

Advisors Limited.

Schemes of IDFC Mutual Fund

The sponsor is the settler of the Mutual Fund Trust. The sponsor has entrusted a sum of
Rs.30,000 to the Trustees as its contribution towards the corpus of the Mutual Fund. The
Schemes launched (and existing) by the Mutual Fund comprised of 16 Open Ended
schemes and 19 Close-Ended schemes as on March 31, 2009. During the year
under review, thirty four Close Ended schemes were launched.

Another Category of Mutual Fund Scheme

1) PMS (Portfolio Management Services):-

PMS is a scheme started for the high net worth individuals. Earlier the minimum amount
for investment was one crore rupees. But due to the economic slowdown the minimum
amount was reduced to Ten Lakh rupees.

The total amount to be collected under scheme is Rs.500 cr. Out of which 50 cr is
contributed by the AMC and rest is collected by the investors. 75% of the amount is
invested in upcoming industries (unlisted) having high growth potentials and 25% in the
existing industries (listed).

Amount from the investors is collected in two instalments.50% of the amount is
deposited at the time of submitting the application, where as remaining amount can be
called at any time in next two and half years. Investor is given 21 days notice for calling
the remaining amount. In the case of failure to submit the 2nd installment the first
installment will be forfeited by the AMC.

Advantage Of PMS

Due to the investment in the establishing industries the investors get the stocks of those
companies at the face value at the time of IPOs. Hence, there is a great chance of higher
returns as compared to other funds. But higher returns are always followed by higher
risks. So, the risk element is always higher in PMS.

2) Pension Fund

Recently Government of India has announced a pension fund in which the investors can
invest from the age of 25 years . The investors will have to invest the amount at regular
intervals for a definite period of time, say till he retires. After retirement he will get a
lump sum payment of whatever has been accrued till then.
The minimum investment in this scheme is Rs.6000 per year. The mode of investment
can be monthly , half yearly or yearly. More frequent the mode of payment is, the more
service charge is to be paid. Hence it is advisable to invest half yearly or yearly.
There are only six fund managers who have been allowed to collect the funds from the
general public for this scheme, they are:
1) ICICI Prudential pension funds management
2) IDFC Pension fund
3) Kotak Mahindra Pension fund
4) Reliance Capital pension fund
5) SBI pension funds
6) UTI retirement solutions

Premier Equity Fund (Mid Cap Fund)

 IDFC Premier Equity Fund is a Mid Cap Fund started on 28th September 2005.

 The fund size is Rs. 576.06 crore managed by Mr. Kenneth Andrade having more
than 15 years of experience in fund management.

 The fund is invested in the mid cap companies having high growth potential and
tend to give high returns to the investors:-
Indian Overseas Bank
Jindal Steel and Power Ltd
Blue Dart Express ltd
Pantaloon Retail (India) Ltd
Bata India Ltd

 In 2008, the fund was ranked 35th among the existing funds in the world.

 In this period of Recession when others disappointed, this 5 star rated Fund (By
ICRA) has given absolute 25% & 57% returns in the last 3 & 6 months

 The minimum investment in this fund is Rs.25000 & Rs.2000 for SIP. It can be
monthly/quarterly or Daily. (with min requirement of 6 installments in monthly and
30 installments in daily)

 Last dividend declared was 15% on 28th April 2009.

 The beta (β) is 0.93 that means the portfolio risk is less than the market risk. The fall
in NAV is always less than the fall in the Market.

 As Standard deviation is 9.84% the NAV doesn’t deviate much at the time of
fluctuation. It gives consistent returns.

 Asset allocation:
Equity : 85.38%
Debt : 14.44%
Cash : 0.18%

 Options like Growth, Dividend, Reinvestment facility is available under this scheme.

B) Basic introduction of the project:-

In few years Mutual Fund has emerged as a tool for ensuring one’s financial well being.
Mutual Funds have not only contributed to the India growth story but have also helped
families tap into the success of Indian Industry. Now Indian companies really wants good
infrastructure to grow as fast as possible and Mutual Funds are designing a special funds
to infuse money in Infrastructure. As information and awareness is rising more and more
people are enjoying the benefits of investing in mutual funds. The main reason the
number of retail mutual fund investors remains small is that nine in ten people with
incomes in India do not know that mutual funds exist. But once people are aware of
mutual fund investments opportunities, the number who decide to invest in mutual funds
increases to as many as one in five people. The trick for converting a person with no
knowledge of mutual funds to a new Mutual Fund customer is to understand which of the
potential investors are more likely to buy mutual funds and to use the right arguments in
the sales process that customers will accept as important and relevant to their decision.
This Project gave me a great learning experience and at the same time it gave me enough
scope to implement my analytical ability. This report will help you to understand what
the role of mutual funds is in Indian economy and resource mobilization.


When an investor subscribes for the units of a mutual fund, he becomes part owner of
the assets of the fund in the same proportion as his contribution amount put up with
the corpus (the total amount of the fund). Mutual Fund investor is also known as a
mutual fund shareholder or a unit holder.
Any change in the value of the investments made into capital market instruments
(such as shares, debentures etc) is reflected in the Net Asset Value (NAV) of the
scheme. NAV is defined as the market value of the Mutual Fund scheme's assets net of
its liabilities. NAV of a scheme is calculated by dividing the market value of scheme's
assets by the total number of units issued to the investors.


• Portfolio Diversification
• Professional management
• Reduction / Diversification of Risk
• Liquidity
• Flexibility & Convenience
• Reduction in Transaction cost
• Safety of regulated environment
• Choice of schemes
• Transparency


• No control over Cost in the Hands of an Investor

• No tailor-made Portfolios
• Managing a Portfolio Funds
• Difficulty in selecting a Suitable Fund Scheme

The history of mutual fund industry

The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank. Though the
growth was slow, but it accelerated from the year 1987 when non-UTI players entered
the Industry.

In the past decade, Indian mutual fund industry had seen a dramatic improvement, both
qualities wise as well as quantity wise. Before, the monopoly of the market had seen an
ending phase; the Assets Under Management (AUM) was Rs67 billion. The private
sector entry to the fund family raised the Aum to Rs. 470 billion in March 1993 and till
April 2004; it reached the height if Rs. 1540 billion.

The Mutual Fund Industry is obviously growing at a tremendous space with the mutual
fund industry can be broadly put into four phases according to the development of the
sector. Each phase is briefly described as under.

First Phase – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the
Reserve Bank of India and functioned under the Regulatory and administrative control
of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the
Industrial Development Bank of India (IDBI) took over the regulatory and
administrative control in place of RBI. The first scheme launched by UTI was Unit
Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management.

Second Phase – 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund
established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab National
Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun
90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June
1989 while GIC had set up its mutual fund in December 1990.At the end of 1993, the
mutual fund industry had assets under management of Rs.47,004 crores.

Mobilisation as
% of gross
Amount Assets Under Domestic
1992-93 Mobilised Management Savings
UTI 11,057 38,247 5.20%
Public Sector 1,964 8,757 0.90%
Total 13,021 47,004 6.1

Phase III. - 1993-96 (Emergence of Private Sector Funds)

The permission given to private sector funds including

foreign fund management companies (most of them entering through joint ventures with
Indian promoters) to enter the mutual fund industry in 1993, provided a wide range of
choice to investors and more competition in the industry. Private funds introduced
innovative products, investment techniques and investor-servicing technology. By 1994-
95, about 11 private sector funds had launched their schemes.

Phase IV. - 1996-2004 (Growth and SEBI Regulation)

The mutual fund industry witnessed robust growth and stricter regulation from the SEBI
after the year 1996. The mobilization of funds and the number of players operating in
the industry reached new heights as investors started showing more interest in mutual
Investors' interests were safeguarded by SEBI and the Government
offered tax benefits to the investors in order to encourage them. SEBI (Mutual Funds)
Regulations, 1996 was introduced by SEBI that set uniform standards for all mutual
funds in India. The Union Budget in 1999 exempted all dividend incomes in the hands
of investors from income tax. Various Investor Awareness Programmes were launched
during this phase, both by SEBI and AMFI, with an objective to educate investors and
make them informed about the mutual fund industry. In February 2003, the UTI Act was
repealed and UTI was stripped of its Special legal status as a trust formed by an Act of
Parliament. The primary objective behind this was to bring all mutal fund players on the
same level.

UTI was re-organized into two part:

1. The Specified Undertaking,

2. The UTI Mutual Fund

Presently Unit Trust of India operates under the name of UTI Mutual Fund and its past
schemes (like US-64, Assured Return Schemes) are being gradually wound up.
However, UTI Mutual Fund is still the largest player in the industry. In 1999, there was
a significant growth in mobilization of funds from investors and assets under


31-Mar-99 53,320 8,292 6,860 68,472

Phase V. 2004 Onwards (Growth and Consolidation):-

The industry has also witnessed several mergers and acquisitions recently, examples of
which are acquisition of schemes of Alliance Mutual Fund by Birla Sun Life, Sun F&C
Mutual Fund and PNB Mutual Fund by Principal Mutual Fund. Simultaneously, more
international mutual fund players have entered India like Fidelity, Franklin Templeton
Mutual Fund etc. There were 29 funds as at the end of March 2006. This is a
continuing phase of growth of the industry through consolidation and entry of new
international and private sector players.


1-Apr-98 31-Mar-99 11,679 1,732 7,966 21,377
1-Apr-99 31-Mar-00 13,536 4,039 42,173 59,748
1-Apr-00 31-Mar-01 12,413 6,192 74,352 92,957
1-Apr-01 31-Mar-02 4,643 13,613 1,46,267 1,64,523
1-Apr-02 31-Jan-03 5,505 22,923 2,20,551 2,48,979
03 31-Mar-03 * 7,259* 58,435 65,694
1-Apr-03 31-Mar-04 - 68,558 5,21,632 5,90,190
1-Apr-04 31-Mar-05 - 1,03,246 7,36,416 8,39,662
1-Apr-05 31-Mar-06 - 1,83,446 9,14,712 10,98,158


Mutual funds can be classified as follow:

 Based on their structure:

Open-ended funds: Investors can buy and sell the units from the fund, at any point of

Close-ended funds: These funds raise money from investors only once. Therefore, after
the offer period, fresh investments can not be made into the fund. If the fund is listed on a
stocks exchange the units can be traded like stocks (E.g., Morgan Stanley Growth Fund).
Recently, most of the New Fund Offers of close-ended funds provided liquidity window
on a periodic basis such as monthly or weekly. Redemption of units can be made during
specified intervals. Therefore, such funds have relatively low liquidity.
Based on their investment objective:

Equity funds: These funds invest in equities and equity related instruments. With
fluctuating share prices, such funds show volatile performance, even losses. However,
short term fluctuations in the market, generally smoothens out in the long term, thereby
offering higher returns at relatively lower volatility. At the same time, such funds can
yield great capital appreciation as, historically, equities have outperformed all asset
classes in the long term. Hence, investment in equity funds should be considered for a
period of at least 3-5 years. It can be further classified as:

i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is
tracked. Their portfolio mirrors the benchmark index both in terms of composition and
individual stock weightages.

ii) Equity diversified funds- 100% of the capital is invested in equities spreading
across different sectors and stocks.

iii|) Dividend yield funds- it is similar to the equity diversified funds except that they
invest in companies offering high dividend yields.

iv) Thematic funds- Invest 100% of the assets in sectors which are related through
some theme.
e.g. -An infrastructure fund invests in power, construction, cements sectors etc.

v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector
fund will invest in banking stocks.

vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.

Balanced fund: Their investment portfolio includes both debt and equity. As a result,
on the risk-return ladder, they fall between equity and debt funds. Balanced funds are
the ideal mutual funds vehicle for investors who prefer spreading their risk across
various instruments. Following are balanced funds classes:

i) Debt-oriented funds -Investment below 65% in equities.

ii) Equity-oriented funds -Invest at least 65% in equities, remaining in debt.

Debt fund: They invest only in debt instruments, and are a good option for investors
averse to idea of taking risk associated with equities. Therefore, they invest exclusively
in fixed-income instruments like bonds, debentures, Government of India securities; and
money market instruments such as certificates of deposit (CD), commercial paper (CP)
and call money. Put your money into any of these debt funds depending on your
investment horizon and needs.

i) Liquid funds- These funds invest 100% in money market instruments, a large portion
being invested in call money market.

ii) Gilt funds ST- They invest 100% of their portfolio in government securities of and T-

iii) Floating rate funds - Invest in short-term debt papers. Floaters invest in debt
instruments which have variable coupon rate.

iv) Arbitrage fund- They generate income through arbitrage opportunities due to mis-
pricing between cash market and derivatives market. Funds are allocated to equities,
derivatives and money markets. Higher proportion (around 75%) is put in money
markets, in the absence of arbitrage opportunities.

v) Gilt funds LT- They invest 100% of their portfolio in long-term government securities.

vi) Income funds LT- Typically; such funds invest a major portion of the portfolio in
long-term debt papers.

vii) MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an
exposure of 10%-30% to equities.

viii) FMPs- fixed monthly plans invest in debt papers whose maturity is in line with that
of the fund.


1. Systematic Investment Plan: under this a fixed sum is invested each month on a
fixed date of a month. Payment is made through post dated cheques or direct debit
facilities. The investor gets fewer units when the NAV is high and more units when the
NAV is low. This is called as the benefit of Rupee Cost Averaging (RCA)

2. Systematic Transfer Plan: under this an investor invest in debt oriented fund and
give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the
same mutual fund.

3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual fund

then he can withdraw a fixed amount each month.



The success story of any economy can only be scripted on the basis of sound
financial system of the country. Economic reform process of 1991 had a great impact on
the financial system of the country leading to the overall development of the Indian
economy. Today, India’s financial system is considered to be sound and stable as
compared to many other Asian countries where the financial market is facing many
crises. During last one decade or so, role of Indian mutual funds industry as a significant
financial service in financial market has really been noteworthy. In fact, Mutual funds
have emerged as an important segment of financial market of India, especially as a result
of the initiatives taken by the Govt. of India for resolving problems relating to UTI’s US-
64 and to liberalize tax liabilities on the incomes earned by the mutual funds. They now
play a very significant role in channelizing the saving of millions of individuals into the
investment in equity and debt instruments.

The economic and financial scenario of India prior to 1991 was somehow not optimistic.
Indian economy at that time was suffering from low savings, low GDP, high inflation,
high unemployment, high rates of interest, low forex reserve, etc.. When India
approached IMF for financial assistance in 1991, we were imposed certain conditions on
the basis of which the financial assistance was sanctioned to India. These restrictions
which we accepted under the pressure from IMF were actually the starting point of
economic reforms popularly known as LPG process. The result of the LPG process of
1991 is more clearly visible now. India is now being ranked as one of the fastest growing
economy of the world. As the eleventh five year planning is about to start, we are already
targeting a GDP growth of 9%. The saving of the country is now around 29%. Foreign
investors are finding Indian market with high potential. India’s forex reserve is around
$175 billion. Inflation is also at 5% which is considered good for developing economies.
So, Indian economy is really booming today

AUM as a percentage of household financials assets start to increase. At present, India
has a GDP of around $3,000 on a per capita basis and the AUM as a percentage of
household financial assets is under 4%. This is undoubtedly very low as compared to
other countries. As India’s GDP is expected to maintain its growth rate, households will
surely be holding more assets through mutual fund than ever before. The tremendous
growth of Indian Mutual Funds industry is an indicator of the efficient financial market
we are currently having and the trust which investors have on the regulatory
environment. Mutual Funds are essentially investment vehicles where people with similar
investment objective come together to pool their money and then invest accordingly.
Each unit of any scheme represents the proportion of pool owned by the unit holder
(investor). Appreciation or reduction in value of investments is reflected in net asset
value (NAV) of the concerned scheme, which is declared by the fund from time to time.
Mutual fund schemes are managed by respective Asset Management Companies (AMC).
Different business groups / financial institutions / banks have sponsored these AMCs,
either alone or in collaboration with reputed international firms. Several international
funds like Alliance and Templeton are also operating independently in India. Many more
international Mutual Fund giants are expected to come into Indian markets in the near
future. Mutual Funds invest according to the underlying investment objective as specified
at the time of launching a scheme. So, we have equity funds, debt funds, gilt
funds and many others that cater to the different needs of the investor. The availability of
these options makes them a good option. While equity funds can be as risky as the stock
markets themselves, debt funds offer the kind of security that is aimed for at the time of
making investments. Money market funds offer the liquidity that is desired by big
investors who wish to park surplus funds for very short-term periods. Balance Funds
cater to the need of investors having an appetite for risk greater than that of the debt
funds but less than the equity funds. The only pertinent factor here is that the fund has to
be selected keeping the risk profile of the investor in mind because the products listed
above have different risks associated with them. So, while equity funds are a good bet for

a long term, they may not find favour with corporates or High Net-worth Individuals
(HNIs) who have short-term needs.
Mutual Fund for Retail investors
Pure equity new fund offerings (NFOs) collected a whopping Rs 32,309 crore in 2006,
almost 33% more than the money raised by Indian corporates through initial and follow-
on issues. This is a clear indication that retail investors are increasingly tapping the stock
market through the mutual fund route. The mutual fund (MF), as a capital market
intermediary, has emerged as new avenue for capital resources. It bridges the gap
between retail investors and capital markets. According to Value Research data, the top
five equity NFOs were Reliance Equity (Rs. 5,790 crore), SBI Bluechip (Rs. 2,850
crore), Reliance Long Term Equity (Rs. 2,100 crore), UTI Leadership Equity (Rs. 2,080
crore) and Templeton India Equity Income (Rs. 2,030 crore). Close to 40 NFOs were
made in 2006 with average collections of Rs. 950 crore. The top five IPOs of 2006 were.
made by the following companies — Cairn India (Rs. 5,260 crore), Reliance Petroleum
(Rs. 2,700 crore), Bank of Baroda (Rs. 1,633 crore), Parsvnath Developers (Rs. 1,089
crore) and Lanco Infratech (Rs. 1,067 crore). So, it is clearly evident that MF is providing
more opportunities for the corporates to raise more funds. It is offering several options in
structured forms. The industry is going to play a major role model in the capital markets.
According to a study conducted by the Associated Chambers of Commerce and Industry
of India, the size of the Mutual Funds industry is expected to be worth Rs. 4 lakh crores
by 2010. Mutual Funds would be one of the major instruments of wealth creation and
wealth saving in the years to come, giving positive results. The consistency in the
performance of mutual funds has been a major factor that has attracted
many retail investors. The Indian Mutual Funds industry has been growing at a healthy
pace of 16.68 per cent for the past eight years and the trend will move further. According
a study, it has been found out that almost 54 % of people invests for security and
certainty while 38 % of the people invests for current spending. Some 53 % of the people
prefer long term investment whereas 23% people each prefer medium term and small
term investment. All these studies relate to retail investors. Actually, it is the consistence
performance of mutual funds which is attracting retail investors towards it. Today, MF
equity portfolio is worth around $32 billion, while individual investors own $88 billion.

It is the retail investors who have been heavily investing in equities through MFs over the
past couple of years. This observation can be made from the fact that close to $17 billion
of NFO collections made in the last four years from equity funds. Eventually, money
collected on these have made their way to equity market. On an average, MF net
investments into equity markets remained at around 50% of that by FIIs in the past three
to four years. As retail investor’s investments are typically long-term oriented, they are
therefore important for maintaining stability in any equity market. Another very
significant development for retail investors in the field of mutual funds is the entry of
mutual funds in real estates. For the last three years the real estate sector has been
growing at a fast pace of 30-40 %, especially in the metros. But for retail investors,
participating in this growth was not easy. By opening the real estate investment for
mutual funds, retail investors, who cannot invest directly in real estates (which needs
huge investments to start with), are actually allowed to investment in real estates through
mutual funds. Retail investors are expected to account for 60% of the industry’s AUM.
But this can be possible only if mutual funds in the country manage to enter into
nonurban cities. This becomes more important because this is where savings deposits
account for 49% of the total assets. These small towns account for only 30% of their
holdings in mutual funds. So, one thing can be said for sure that retail investors are going
to participate more and more in mutual funds in the times to come and thereby a lot of
financial resources are going to be mobilized to financial market of India.
Money Market Mutual Fund
A money market fund is a mutual fund that invests solely in money market instruments.
Money market instruments are forms of debt that mature in less than one year and are
very liquid. Treasury bills make up the bulk of the money market instruments. Securities
in the money market are relatively risk-free Money market funds.
The goal of a money-market fund is to preserve principal while yielding a modest return.
Money market mutual fund is similar to a high-yield bank account but can not be said to
be entirely risk free. When investing in a money-market fund, one should be more
attentive to the interest rate that is being offered. Money market mutual funds are very
significant financial resource mobilizer for short term period.

No Longer Mutual for the Middleman
SEBI’s ruling on mutual funds will bring in new models of distribution and
eventually make the industry stronger
From August 2009, the Indian mutual fund industry will change its distribution model
under an order from the Securities and Exchange Board of India. The regulator has done
away with entry load for schemes. This will cause a lot of turmoil for all three parties
involved: Mutual fund companies, investors and the distributors who handle 90 percent
of the transactions.

How will the industry change?

SEBI wants the industry to follow the model practiced by UK, US and other European
countries. This means the investor can decide the amount of advisory fees that
distributors receive. So, the distributors will not get the 2.25 percent on every transaction
that they now put through. This means there is no incentive for distributors to sell mutual
fund products, unless the investor agrees to pay them separately. Many distributors say
that if the commission is removed, they will switch over to selling insurance products
where the commission system is intact. In order to survive, they will have to scale up and
become advisors. They will be in direct competition with banks to sell mutual funds.
Banks hold an advantage since they know the financial status of customers. “This is a
transformative change for the industry in India. Now distributors will have to become a
complete finance advisor and help investors in giving financial solutions,” says Sourab
Tripathi of the Boston Consulting Group.

Why are tier III towns so important?

Until now the top eight cities accounted for 80 percent of the mutual fund markets.
Distributors never tapped tier III cities. But, as the market shifts from a fund-based
module to a fee-based module, they will have to re-think their strategy. Distributors will
now offer annual plans and charge fees accordingly and to increase their business they
will be forced to get more investors under their fold than concentrate on the funds of the
same investors. In spite of all the initial problems that will be created by this move, over
the longer term, it will only benefit the industry.

What models will emerge in the future?
Mutual funds will be sold through four different channels. There will be a basic discount
broker model or a courier boy model. Here, the distributor will simply act as the
postman. People with knowledge of mutual funds will use them but pay only a very small
fee. A further extension of this model will be a “Do it yourself” model through the Net
which could charge around one percent on the total invested amount. The other two
models will be slightly at the higher end, offering advisory services. These could be the
next door independent financial advisor who could charge the investor around 1-1.5
percent while the top-end model will belong to banks which will charge closer to 2
percent. Even banks will not be able to charge high fees as the banking customer will
become savvy.

C) Organizational hierarchy:-

IDFC MF is a combination of three companies and I work under IDFC MF Asset

Management Company.

Organizational hierarchy

Structure of Mutual Funds In India

Like other countries, India has a legal framework within which mutual funds must be
constituted. In India, open and closed-end funds operate under the same regulatory

structure, i.e. in India; all mutual funds are constituted along one unique structure-as unit
trust. A mutual fund in India is allowed to issue open-end and close end schemes under a
common legal structure. Therefore, a mutual fund may have different schemes (open and
closed-end) under it i.e. under one unit trust, at any point of time. The structure, which is
required to be followed by mutual funds in India, laid down under SEBI (Mutual Fund)
Regulations, 1996.

The Fund Sponsor

'Sponsor" is defined under SEBI regulations as any person who, acting Alone or in
combination with another body corporate, establishes a, mutual fund. The sponsor of a
fund is akin to the promoter of companies he gets the fund registered with SEBI. The
sponsor will form a Trust and appoint a board of Trustees. The sponsor will also
generally appoint an Asset management Company (AMC) as fund managers. The
sponsor ill also appoint a Custodian to hold the fund assets. All these appointment are
made in accordance with the SEBI regulations. Per the existing SEBI regulations, for a
person to qualify as a sponsor, must contribute at least 40% of the net worth of the AMC
and issues a sound financial track over five years prior to registration.

Mutual Funds as Trusts

Mutual fund in India is constituted in the form of a Public Trust under the Indian Trusts
Act 1882.The fund invites investors. Contribute their money in the common pool by
subscribing to units Issued by various schemes established by the trust as evidence of
their beneficial interest in the fund.
The trust or fund has no legal capacity itself rather it is the Trustee(s) who have legal
capacity and therefore the trustees take all acts in relation to the trust on its behalf.


A board of trustees - a body of individuals, or a Trust company - a corporate body, may

manage the Trust. Board of Trustees manages most of the funds in India.4, The Board or
the Trustee Company (body of individuals, corporate body, for managing the portfolio,
appoints an Asset Management Company. The Trust is created through a document
called the Trust Deed that is executed by the Fund Sponsor in favors of the trustees. They
are the primary guardian of the unit holder's funds and assets. They ensure that AMC's
operations are along professional lines.

Asset Management Company

The role of an Asset Management Company (AMC) is to act as the investment manager
of the trust under the Board supervision.

Transfer Agents

Transfer agents are responsible for issuing and redeeming units of the mutual fund and
provide other related services such as preparation of transfer documents updating
investors' records. A fund may choose to out this activity in-house or by an outside
transfer agent.


AMC’s usually appoint Distributors or Brokers, who sell units on behalf bf the fund.
Some funds require that all transactions to be routed through such brokers.
In India, besides brokers, independent individuals are appointed as agents for the purpose
of selling the fund scheme to the investors. While individual constitute the largest
segment in the category of mutual fund distributors, other distributors include banks,
NBFCs and corporate.

D) Department:-

I work under IDFC Asset Management Company where there are three departments
AMC, Sales and relationship building and operations. That all departments in one office
so I work for all three. AMC works under PAN India concept where in 23 braches are in
all over India and I worked at Nagpur Branch.
Mainly I work with sales and relationship building department where we went to ARN
holders for empanelment and making awareness of IDFC Mutual Funds various
schemes and we also went for the same purpose to various Banks and National
We also work for Operations for collecting application and send them to CAM for
further processes.

Chapter: - 3


a) Methods & Tools adopted for study:-

Measurement of risk

 Beta Coefficient Measure of Risk:

Beta relates a fund’s return with a market index. It basically measures the
sensitivity of funds return to changes in market index.

If Beta = 1, Fund moves with the market i.e. Passive fund

If Beta < 1, Fund is less volatile than the market i. e Defensive Fund

If Beta > 1, Funds will give higher returns when market rises & higher losses
when market falls i.e. Aggressive Fund

Ex –Marks or R-squared Measure of Risk

Marks represent co relation with markets. Higher the Ex-marks lower the risk of the
fund because a fund with higher Ex-marks is better diversified than a fund with lower

Standard Deviation Measure of Risk:

It is a statistical concept, which measures volatility. It measures the fluctuations of
fund’s returns around a mean level. Basically it gives you an idea of how volatile your
earnings are. It is broader concept than BETA. It also helps in measuring total risk and
not just the market risk of the portfolio.

B) Data Collection:-

I have used primary as well as secondary data collection technique for data collection for
primary data collection I have used Unstructured Direct Interview technique and I have
used secondary data collection from various web sites, journals and newspapers.

Personal Visit:-
The second way of collecting data is Personal Visits to the corporate personally by fixing
an appointment. Personal Visit gives a clear picture of the conclusion drawn in
Questionnaire It gives a clear view of the client Awareness about the product. We also
take the appointment from various ARN holders for empanelment and awareness of
IDFC MF. Some of the difficulties in making Personal Visits are:-
 To take a time or appointment from the corporate.
 To convenes investor to invest in a particular product.
The Banks & other National Distributors where we visited during these two months
1) India Infoline
2) Sharekhan
3) Reliance Money
4) Dena bank
5) IDBI bank
6) Centrum
7) Yes Bank
8) Union bank of India
9) Religare securities
10) Blue chip
11) ICICI bank
12) Anagram Securities
13) Shriram Fortune
14) UAE Exchange
15) Bajaj Capital

16) Kotak Bank
17) Tata Securities
18) Angel Broking
19) Standard Chartered wealth Management
20) Axis Bank
21) Bajaj Capital
22) Anand Rathi
23) HDFC Securities
24) Birla Sunlife
25) NJ Fundz
25) Prudent
26) Karvy Finapolis
27) DBS Cholamandalam
28) Stock holding
29) Mahindra finance


The further source of collecting data is telephonic information with the existing customer
and the prospective investors. It is very difficult to reveal the data of investors from the
company itself because it has been kept as a secret document. After getting a data some
problems too come in the way. Some are:-
 People are not ready to listen.
 People ask question like from where did you get the number?
 From this source not much of the Information is drawn.
 Few respondents where not happy with the level of customer services endured
by MF’s.

C) Analysis of Data:-
Imperial Equity Fund (Large Cap Fund)

IDFC Imperial Equity Fund is a Large Cap Fund .The fund size is Rs.189.07 crore ..
Last dividend declared was 15% on 14th May 2008. The beta (β) is 0.85 that means the
portfolio risk is less than the market risk. The fall in NAV is always less than the fall in
the market. As Standard deviation is 8.77% the NAV doesn’t deviate much at the time of
fluctuation. It gives consistent returns. Asset allocation :
Equity: 73.32%, Debt : 21.40%, Cash : 5.28%.

Premier Equity Fund (Mid Cap Fund)

IDFC Premier Equity Fund is a Mid Cap Fund. The fund size is Rs. 576.06 crore , the
fund was ranked 35th among the existing funds in the world. In this period of Recession,
this 5 star rated Fund (By ICRA) has given absolute 25% & 57% returns in the last 3 &
6 months respectively. . Last dividend declared was 15% on 28th April 2009. The beta
(β) is 0.93 that means the portfolio risk is less than the market risk. The fall in NAV is
always less than the fall in the Market.
As Standard deviation is 9.84% the NAV doesn’t deviate much at the time of fluctuation.
It gives consistent returns.
Asset allocation: equity : 85.38%, Debt : 14.44%, Cash : 0.18%


(Rupees crore)
Year Bank-Sponsored FI-Sponsored
Canara Baroda
Robeco Pioneer GIC MF LIC MF Total
2003-04 1927 495 1841 263 -147 934 5313
2004-05 1024 -11 - -307 -33 -3351 -2677
2005-06 5280 56 - 29 - 2112 7477
2006-07 3208 -96 - -79 - 4226 7258
2007-08 7339 295 - 152 - 2178 9965
2008-09 2617 1317 - 556 - 5954 10443

(Rupees crore)

Unit Trust of Bank-sponsored Institution- Private Sector
Year Total
India Mutual Funds sponsored Mutual Mutual Funds

2003-04 1050 4526 787 41510 47873

2004-05 -2467 706 -3384 7933 2788
2005-06 3424 5365 2112 41581 52482
2006-07 7326 3033 4226 79477 94063
2007-08 10678 7786 2178 163356 183998
2008-09 -4112 4489 5954 -28685 -22355


(Rupees crore)
period) 1st quarter 2nd quarter 3rd quarter 4th quarter
2003-04 1967897 2614276 3339708 3604282
2004-05 3325734 3661474 4562774 5090900
2005-06 5269364 6365449 6878063 8333928
2006-07 8819293 6179460 10572341 10813997
2007-08 12071161 14270733 19887553 16822541
2008-09 15598194 13676798 8960994 8946210

D) Pictorial / Graphic / pie charts, presentation of data.

Total Number National Level Distributors in Vidharbha: 41

Out of which 29 are present in Nagpur.
18 are retail point of sale
4 are bank (wholesale point of sale)

NLD in Other Cities, Non-Banking institutions in

12, 29% Nagpur
Banks in Nagpur
Banks in Nagpur, 4, institutions in NLD in Other Cities
10% Nagpur, 25, 61%

City wise distribution of empanelled IFAs in Vidharbha region.




50 34
11 12 8
IFAs in IFAs in IFAs in IFAs in IFAs in Toatal IFAs
Akola Amravati Chandrapur Nagpur other Cities

Called to non-empanelled IFAs for empanelment.
Total number of ARN (AMFI Registration Number) holders in Nagpur : 792
Empanelled ARN holders are: 269
Non-empanelled ARN holders: 502
ARN holder who submitted the forms for empanelment: 21

ARN holder who

submitted the forms
for empanellment,
21, 3%
Empanelled ARN Empanelled ARN holders
holders , 269, 34%
Non-empanelled ARN holders

Non-empanelled ARN holder who submitted the

ARN holders, 502, forms for empanellment

Chapter: - 4
Observations / Findings:-

1) In Nagpur there are more than 100 National distributors & banks for distribution of
IDFC Mutual funds
2) More than 700 ARN holders in Nagpur region
3) There are more than 500 IFAs who are not empanelled with IDFC
4) The majority of people in Nagpur are not aware of IDFC Mutual fund
5) Two funds of IDFC, Premier equity fund & Imperial equity fund are among the best
6) Most of the people still believe in fixed deposits and Savings a/c instead of Mutual
7) Among the people who invest in Mutual funds most of them prefer equity, the
second most preferred was balanced (mixture of both debt & equity) and last
preferred was debt fund
8) The maximum number of investors prefer Growth option, then dividend payout and
last preferred is dividend reinvestment
9) Most investors prefer high return in investment and next preferred is less risk and
low liquidity.
10) Most of the investors lost faith in Mutual funds at the time of recession & it’s
difficult to regain their faith.
11) At the time any NFO, IFAs & other distributors usually advice the prospects to
invest in an NFO.
12) The new guidelines of SEBI to ban the entry load will have great implications.
13) Now the IFAs will give them correct advice to invest in a good scheme.
14) According to the new guidelines of SEBI the exit load is to be charged only if the
withdrawal is within a year of investment.

Chapter: - 5


1. Many people don’t know what is mutual fund; it is difficult to explain them,
especially less literate and illiterate people.
2. Many people are not ready to invest and not even to listen because market has
fallen from 200000 points to 8000points
3. Because of recession many people want to keep their money in liquid form or
want to invest in gold because they are afraid that they may loose their job in
recession therefore they may need money very soon.
4. Many people want to invest more but there funds are already blocked in
5. People generally are in hurry in bank they want to finish their work as early as
possible hence they don’t give proper time for explaining the product.
6. Many people still don’t have pan card especially farmers or low earning
employees hence they cannot invest in market even though they are interested.
7. Difficult to take an appointment with professional people.
8. Difficult to get the documents required for formalities from investors
9. Difficult to overcome an impassionate person who wants return in less time.
10. Difficult to follow up the people whose names are being stored in a data.
11. Difficult to remove the fear of risk from the minds of investors

Chapter: -6


Running a successful Mutual Fund requires complete understanding of the peculiarities

of the Indian Stock Market and also the psyche of the small investors. This study has
made an attempt to understand the financial behavior of Mutual Fund investors in
connection with the preferences of Brand (AMC), Products, Channels etc. I observed
that many of people have fear of Mutual Fund. They think their money will not be secure
in Mutual Fund. They need the knowledge of Mutual Fund and its related terms. Many of
people do not have invested in mutual fund due to lack of awareness although they have
money to invest. As the awareness and income is growing the number of mutual fund
investors are also growing.

“Brand” plays important role for the investment. People invest in those Companies
where they have faith or they are well known with them. There are many AMCs in
Nagpur but only some are performing well due to Brand awareness. Some AMCs are
not performing well although some of the schemes of them are giving good return
because of not awareness about Brand. Reliance, UTI, SBIMF, ICICI Prudential etc.
they are well known Brand, they are performing well and their Assets Under
Management is larger than others whose Brand name are not well known like Principle,
Sunderam, etc.

Distribution channels are also important for the investment in mutual fund. Financial
Advisors are the most preferred channel for the investment in mutual fund. They can
change investors’ mind from one investment option to others. Many of investors directly
invest their money through AMC because they do not have to pay entry load. Only those
people invest directly who know well about mutual fund and its operations and those
have time.


1. The most vital problem spotted is of ignorance. Investors should be made aware
of the benefits. Investors should be made to realize that ignorance is no longer bliss
and what they are losing by not investing.
2. Mutual funds offer a lot of benefit which no other single option could offer. But
most of the people are not even aware of what actually a mutual fund is? They only
see it as just another investment option. So the advisors should try to change their
mindsets. The advisors should target for more and more young investors. Young
investors as well as persons at the height of their career would like to go for advisors
due to lack of expertise and time.
3. Mutual Fund Company needs to give the training of the Individual Financial
Advisors about the Fund/Scheme and its objective, because they are the main source
to influence the investors.
4. Before making any investment Financial Advisors should first enquire about the
risk tolerance of the investors/customers, their need and time (how long they want to
invest). By considering these three things they can take the customers into
5. Younger people aged under 35 will be a key new customer group into the future,
so making greater efforts with younger customers who show some interest in
investing should pay off.
6. Customers with graduate level education are easier to sell to and there is a large
untapped market there. To succeed however, advisors must provide sound advice
and high quality.
7. Systematic Investment Plan (SIP) is one the innovative products launched by
Assets Management companies very recently in the industry. SIP is easy for
monthly salaried person as it provides the facility of do the investment in EMI.
Though most of the prospects and potential investors are not aware about the SIP.
There is a large scope for the companies to tap the salaried persons.

Chapter: -8








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