Shiwam FinalReport2

FINAL PROJECT REPORT
ON
MUTUAL FUNDS FRAMEWORK ABSL

AMC Ltd. (B2B SALES)
Submitted by:
Shiwam Sharma
18BSPHH01C1208
ADITYA BIRLA SUN LIFE ASSET

MANAGEMENT COMPANY LIMITED (ABSL
AMC Ltd.)
FINAL PROJECT REPORT
ON
1|Page
SUMMER INTERNSHIP PROGRAM|ABSL AMC

MUTUAL FUNDS FRAMEWORK ABSL
AMC Ltd. (B2B SALES)
Submitted by:
Shiwam Sharma
18BSPHH01C1208
ABSL AMC
Submitted to
Dr. Shubhagata Roy Mrs. Meha Rawat

Faculty Guide Company guide
Department of Operations & IT Channel Manager
IBS Hyderabad ABSL AMC, New Delhi
Date of Submission: 12th May 2019
2|Page

AUTHORISATION
This is to certify that the Final Report titled “MUTUAL FUNDS

FRAMEWORK ABSL AMC Ltd. (B2B SALES)” submitted by Shiwam
Sharma, Enrollment No.: 18BSPHH01C1208 in partial fulfilment of
the requirement of MBA Program of ICFAI Business School (IBS),
Hyderabad (Semester II) is an original work and carried out under
our supervision.
Place:
Authorized Signature
Date:
ACKNOWLEDGEMENT
I would like to acknowledge the management of Aditya Birla Sun Life AMC
Ltd. for providing me with this wonderful opportunity to pursue my Summer
Internship Program (SIP) and get exposure of working environment in a well
reputed insurance sector of India.
3|Page

I thank Mrs. Meha Rawat my Company guide, for her continuous guidance,
help and motivation. Apart from the subject of my report, I learnt a lot from her,
which I am sure, will be useful in different stages of my life.
I gratefully acknowledge my college faculty guide, Dr. Shubhagata Roy for

giving me the opportunity to work in a professional environment and guiding me
through the journey and providing me with all sort of convenience from the
college side. Lastly, I would also like to thank my beloved parents, sister and
friends for their moral support, motivation and encouragement at all times that
helped me to a large extent in successful completion of the project work.
TABLE OF CONTENTS
HEADING TOPIC PAGE NO.

NO.
AUTHORISATION 3
ACKNOWLEDGEMENT 4
1 EXECUTIVE SUMMARY 6
2 INTRODUCTION
4|Page

2.1 BACKGROUND 7
2.2 MUTUAL FUNDS 11
2.3 TYPES OF SCHEMES 15
2.4 ADVANTAGES OF MUTUAL FUNDS 19
2.5 DRAWBACKS ON MUTUAL FUNDS 21
2.6 STEPS TO INVEST IN MUTUAL FUNDS 22
2.7 INVESTMENT DECISIONS IN MFs SCHEMES 24
2.7.1 PORTFOLIO ANALYSIS TOOL 25
2.7.2 ALLOCATIONS: CASE 28
2.8 DISTRIBUTION CHANNELS 29
2.9 SEBI REGULATIONS REGARDING MFs 30
3 MAIN TEXT 20
3.1 B2B SALES 32

3.2 NEW MARKET OPPORTUNITIES ANALYSIS 33
3.3 NAV 37
3.3.1 WHAT IS NAV OF A SCHEME? 37
3.3.2 CALCULATION OF NAV 37
3.4 DIFFERENT SCHEMES UNDER ABSL 39
3.4.1 ABSL FRONTLINE EQUITY FUND 39
3.4.2 ABSL EQUITY HYBRID ’95 FUND 40
3.4.3 ABSL EQUITY FUND 42
3.4.4 ABSL TAX RELIEF 96 43
4 4.1 OBJECTIVES OF THE STUDY 46
4.2 METHODOLOGY 46
4.3 ANALYSIS AND FINDINGS 47
4.4 CONCLUSION 56
4.5 RECOMMENDATION 56
5 REFERENCES 57
5|Page

Chapter 1
EXECUTIVE SUMMARY
In few years Mutual Fund has emerged as a tool for ensuring one’s financial wellbeing.
Mutual Funds have not only contributed to the India growth story but have also helped
families tap into the success of Indian Industry. 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 investment 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. The analysis and advice presented in
this Project Report is based on market research on the saving and investment practices
of the investors and preferences of the investors for investment in Mutual Funds. This
Report will help to know about the investors’ Preferences in Mutual Fund means Are
they prefer any particular Asset Management Company (AMC), Which type of Product
they prefer, Which Option (Growth or Dividend) they prefer or Which Investment
Strategy they follow (Systematic Investment Plan or One time Plan). This Project as a
whole can be divided into two parts.
The first part gives an insight about Mutual Fund and its various aspects, the Company
Profile, Objectives of the study, Research Methodology. One can have a brief
knowledge about Mutual Fund and its basics through the Project.
The second part of the Project consists of data and its analysis collected through survey
done on 100 people. For the collection of Primary data I made a questionnaire and
interviewed 100 people. I studied about the products and strategies of ABSL AMC
Project covers the topic “MUTUAL FUNDS FRAMEWORK ABSL AMC Ltd. (B2B
SALES).”
The data collected has been well organized and presented. I hope the research findings and conclusion
will be of use.
7|Page
6|Page
8|Page
Chapter 2
INTRODUCTION
2.1 BACKGROUND
The Aditya Birla Group is one of India's largest business houses. Global in vision, rooted in
Indian values, the Group is driven by a performance ethic pegged on value creation for its
multiple stakeholders.
The Group's operations span 66 state of the art, straddling India, Thailand, Malaysia, Indonesia,
Egypt, Philippines, Canada, Australia and China.
A US $28 billion corporation with a market cap. Of US $31.5 billion and in the League of
Fortune 500, the Aditya Birla Group is anchored by an extraordinary force of 100,000
employees, belonging to 25 different nationalities. Over 50 per cent of its revenues flow from
its operations across the world.
The Aditya Birla Group is a dominant player in all its areas of operations viz; Aluminium,
Copper, Cement, Viscose Staple Fiber, Carbon Black, Viscose Filament Yarn, Fertilizers,
Insulators, Sponge Iron, Chemicals, Branded Apparels, Insurance, Mutual Funds, Software and
Telecom. The Group has strategic joint ventures with global majors such as Sun Life (Canada),
AT&T (USA), the Tata Group and NGK Insulators (Japan), and has ventured into the BPO
sector with the acquisition of Trans Works, a leading ITES/BPO company.
Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a diverse
range of wealth accumulation and protection products and services to individuals and corporate
customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key
markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong,
the Philippines, Japan, Indonesia, India, China and Bermuda.
9|Page
Since its inception in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading
Mutual Funds managing assets of a large investor base. The fund offers a range of investment
options, which include diversified and sector specific equity schemes, fund of fund schemes,
hybrid and monthly income funds, a wide range of debt and treasury products and offshore
funds.
Aditya Birla Sun Life Asset Management Company Ltd. (ABSLAMC), the investment
managers of Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla
Group and the Sun Life Financial Services Inc. of Canada. The joint venture brings
together the Aditya Birla Group s experience in the Indian market and Sun Life s global
experience.
10 | P a g e
Key Personnel
A Balasubramanian (CEO), Keerti Gupta (COO), Parag Joglekar (CFO), Shailesh

Khatri(CMO), Bhavdeep Bhatt ( Head Products), Girish Kamath (Head HRD), Rama
Vasantharajan (Hd Compliance & Risk),
Fund Managers
Ajay Garg , Ankit Sancheti , Atul Penkar , Maneesh Dangi , Navneet Munot, Nishit
Dholakia , Prasad Dhonde , Sanjay Chawla , Satyabrata Mohanty, Sunaina da Cunha ,
Vineet Maloo .
BSLAMC follows a long-term, fundamental research based approach to investment. The

approach is to identify companies, which have excellent growth prospects and strong
fundamentals. The fundamentals include the quality of the company’s management,
sustainability of its business model and its competitive position, amongst other factors. Birla
Sun Life Asset Management Company has one of the largest team of research analysts in the
industry, dedicated to tracking down the best companies to invest in. Birla Sun Life AMC
strives to provide transparent, ethical and research-based investments and wealth management
services.
Vision
To be the most trusted name in investment and wealth management, to be the preferred
employer in the industry and to be a catalyst for growth and excellence of the asset management
business in India.
Mission
 Achieving superior and consistent investment results.

 Creating a conducive environment to hone and retain talent.
11 | P a g e
 Providing customer delight.
12 | P a g e
 Institutionalizing system-approach in all aspects of functioning.
 Upholding highest standards of ethical values at all times.
Values
 Integrity
 Commitment
 Passion
 Seamlessness
 Speed
Track Record
With a proven track record of over 14 years, Birla Sun Life Mutual Fund has been a catalyst
towards the growth of the private sector asset management business.
Investment Philosophy
Birla Sun Life Mutual Fund follows a long-term, fundamental research based approach to
investment. The approach is to identify companies, which have excellent credit-worthiness and
strong fundamentals. The fundamentals include the quality of the company's management,
sustainability of its business model and its competitive position, amongst other factors. Birla
Sun Life Asset Management Company (BSLAMC) has one of the largest team of research
analysts in the industry, dedicated to tracking down the best companies to invest in.
BSLAMC will always strive to provide transparent, ethical and research-based investments and
wealth management services.
13 | P a g e
Geographical Reach
Today, BSLAMC is present in 111 locations, including 74 branches.
Product Offerings
Birla Sun Life Mutual Fund offers a range of investment options, which include diversified and
sector specific equity schemes, fund-of-fund schemes, hybrid and monthly income funds, a
wide range of debt and treasury products and offshore funds. BSLAMC also provides Private
Wealth Management services.
2.2 Mutual Funds

A Mutual Fund is a pool of funds formed by various people coming together and joining for a
common purpose of an investment avenue to generate returns in the long run. The Mutual
Fund is offered by an Asset Management Company (AMC) which is managed by a Fund
Manager who is a technical person having expertise and skill required to make investment
decisions of various companies. To hedge or protect the money of the investors, the
investment is not made into one stock only; instead the amount to be invested is divided
among the shares of various companies in various sectors so that in case of some industry not
performing well, the investors’ money is safe as some other company may give great returns.
The money so collected is then invested into the capital market instruments such as various
kinds of shares, debentures, gold and other securities. The income thus earned from such
investments and the appreciation of capital realized is shared by its unit holders in the
proportion of the units held by them. Thus it is the most suitable investment option for the
common man as it provides an opportunity to invest into a well-diversified, professionally
managed basket of securities at a relatively low cost. Mutual Funds thrive at minimizing the
risk and maximization of returns through diversification.
14 | P a g e
WHY HAS IT BECOME ONE OF THE LARGEST FINANCIAL
INSTRUMENTS?
If we take a look at the recent scenario in the Indian financial market then we can find the
market flooded with a variety of investment options which includes mutual funds, equities,
fixed income bonds, corporate debentures, company fixed deposits, bank deposits, PPF, life
insurance, gold, real estate etc. All these investment options could be judged on the basis of
various parameters such as- return, safety convenience, volatility and liquidity. Measuring
these investment options on the basis of the mentioned parameters, we get this in a tabular
form:-
Return Safety Volatility Liquidity Convenienc
e
Equity High Low High High Moderate

Bonds Moderate High Moderate Moderate High
Co. Moderate Moderate Moderate Low Low
Debentures
Co. FDs Moderate Low Low Low Moderate

Bank Low High Low High High
Deposits
PPF Moderate High Low Moderate High
Life Low High Low Low Moderate
Insurance
Gold Moderate High Moderate Moderate Gold

Real Estate High Moderate High Low Low
Mutual High High Moderate High High
Funds
Mutual Funds can be classified into various categories and based on various parameters.
The broad classifications are:
 On the basis of structure:
 Open Ended Schemes
15 | P a g e
Open Ended Funds have been in the market from long time back. Such schemes
do not have any particular maturity date and investment date. Usually investors can
enter and exit from these schemes at any particular time which is one of the most
beneficial feature of such schemes.  Close Ended Schemes
Close-ended mutual fund Schemes have a fixed or stipulated maturity period

wherein the investor can invest directly in the scheme which is at the time of the
initial issue and thereafter units of the scheme can be traded (bought/ sold) on the
stock exchanges where the scheme is listed. The market prices at the stock
exchange could vary from the schemes’ NAV on account of demand and supply
in the market, expectations from unit holders and also other market factors.
Usually a characteristic feature of close-ended schemes is that they are generally
traded at a discount to NAV (Net Asset Value); but closer to maturity date, the
discount narrows.
 Interval Schemes
Interval Schemes are those schemes that combine the features of both open-ended
and close-ended schemes. The units of such scheme may be traded on the stock
exchange or they may be open for sale or even for redemption during
predetermined intervals at NAV (Net Asset Value) related prices.
 On the basis of Investment Objective:

 Income Schemes
 Growth Schemes
 Money Market Schemes
 Tax Saving Schemes
 Offshore Funds
 Special Schemes like Index Schemes
Some popular objectives of a mutual fund are:
Fund Objective:
Fund Investment in:
Equity (Growth) Only in stocks
Debt (Income) Only in fixed-income securities
Money Market In short-term money market instruments (including

(including Gilt) government securities)
Partly in stocks and partly in fixed-income securities, in order
Balanced
16 | P a g e
to maintain a 'balance' in returns and risk
17 | P a g e
 On the basis of nature of funds:
 Equity based Funds
 Debt based Funds
 Hybrid/Balanced Funds
TYPES OF
MUTUAL FUNDS
SCHEMES
By Structure By Investment Other Schemes

Objective
Open Close Ended Interva Tax Saving Special

Ended Schemes l Schemes Schemes
Schemes Scheme
Growth Balanced Income Money Sector Index

Schemes Schemes Schemes Market Specific Schemes
Schemes Schemes
18 | P a g e
2.3 Types of Schemes:
Equity Schemes
Equity schemes invest the amounts that they collect from investors into stocks of various
companies listed on the stock exchanges as well as those that are unlisted. These schemes are
also called ‘Growth Schemes’ because the idea behind such investments is to earn a high
return through the rise in the value of the investment. There is a general saying in the Indian
Mutual Fund Industry that a person should invest (100- current age) % of his
investments/savings into equity based funds as the person has a longer time horizon for the
investment.
Sectoral Schemes
These are a variant of equity oriented schemes where the risk for the investor is higher than
the diversified equity schemes. The funds of such schemes are invested into the shares of a
19 | P a g e
particular sector only or it could be in companies that comply with a particular theme only.
The amounts collected by the Fund houses are deposited into one particular sector on which
the fund is based. Thus, there lies a significant risk of the investor if that particular sector
does not perform well. But as is a saying “Profit is the reward for risk taking”, therefore there
is also greater chance that the particular sector might do exceptionally well and the returns
are more than expected.
Equity linked savings scheme (ELSS)
Equity linked savings schemes are also known as tax savings schemes. These are like
diversified equity schemes in terms of their portfolio composition but they give investors a
tax benefit that other schemes do not. Investors looking at earning a higher return on their
investments and save on the tax at the same time opt for such schemes. Unlike normal equity
schemes, ELSS carry a three year lock in period. If any withdrawal is made before the lock-in
period, then exit loads are charged to the amount of funds.
Index Funds
Index funds are known as passive schemes because here the fund manager does not have to
take active investment decisions regarding selection of companies for investment. The corpus
of these schemes is invested in such a manner that it mimics an index that is being tracked by
the fund. The movement of the fund is almost as similar to the movement of the index. For
example, if the index goes up, then the NAV of the scheme goes up and vice versa
Income Schemes
Income schemes invest their assets into debt instruments that are either of medium to long
term in duration. They main distinguishing factor of these schemes is that they are different
in terms of their investment objective. They only seek to generate some income rather than
building up capital. For e.g. bonds, debentures, government securities and other debt
instruments.
Liquid Schemes
Liquid schemes are meant for very short term investors where the investor horizon ranges from
a couple of days to around a week or slightly more. The liquid schemes invest the money into
overnight call money market and extremely short term options. Such schemes are majorly used
by corporate when they have huge sums of money lying idle for a shorter period of time.
Gilt Schemes
Gilt schemes invest their assets only in government securities. There can be short term or
long term schemes. These schemes have no credit risk which means that there is no
possibility of the investments of the scheme turning out to be worthless because the issuing
authority is the government itself. They are most recommended for people in the higher age
groups as they are mostly interested in getting some fixed returns rather than taking risk by
investing a major chunk in equity schemes.
20 | P a g e
Balanced Schemes
Balanced schemes are a mixture of equity and income schemes whereby they hold
both equities and debt in their portfolio. Balanced schemes need to hold an average 65% of
assets as equity. These schemes are meant for those who want to earn some returns on their
investment but would like a small element of stability built into the scheme. The major
advantage is that a portion of the savings will yield almost fixed and guaranteed returns, thus
the investor prefers such type of schemes.
Fixed Maturity Plans (FMP)
FMP’s are plans that are in operation for a short period of time but they act like a quasi fixed
deposit for the investors. This is because the fund manager selects the securities in the
portfolio in such a manner that it matures on the same date as that of the scheme. This results
in the situation where the investor will get a return near the yield of the investments when
they were purchased because of reduced risk in the investment. Unlike open ended schemes,
wherein the investor can invest and exist at almost any time during the investment period,
here such option is not available. These funds mature after a particular time period.
Fund of Funds
This scheme invests its funds into another mutual fund scheme and is hence known as fund of
funds. Several funds invest their corpus into schemes of their own fund house while another
variety of fund of fund schemes invest the amount into schemes from other fund houses too.
Fund of Funds is basically a feeder fund for the main funds. The underlying asset is the same
for both the main fund scheme and Fund of Fund scheme.
Offshore Funds
Offshore funds are specializing in investing in foreign companies or corporations. These

funds basically have non-residential investors and are regulated and guided by the provisions
of the foreign countries in which they are registered. These funds are regulated by RBI
directives and certain changes are introduced from time to time as and when necessary.
Tax-Saving Schemes
Tax-saving schemes offer attractive tax rebates to the investors under tax laws prescribed
from time to time to promote investments into such schemes. Under Sec.88 of the Income
Tax Act, any contributions made to any Equity Linked Savings Scheme (ELSS) is eligible for
rebate @ 20% for a maximum investment on Rs10,000 per financial year which lures the
investors to invest in such schemes.
Money Market Schemes
Money Market Schemes aim to provide easy liquidity, preservation of capital invested and
moderate income. These schemes generally invest in safer, short-term instruments, such as
21 | P a g e
treasury bills, certificates of deposit, commercial paper and inter-bank call money. They are
invested for shorter durations.
Mutual Fund Industry
The Mutual Fund Industry has a worldwide penetration of about 70% of GDP in US, 60% of
GDP in France and over 35% in Brazil and less than even 5% of the GDP of India. Mutual
funds as an investment tool has gained great popularity in the current times, this is clearly
reflected in the robust growth levels of Assets under Management (AUM). Despite this
growth, the level of penetration of Mutual Funds in India is very low as compared to other
global economies.
A new trend or new era started in the Indian industry with the entry of private sector funds in
Mutual Funds in 1993, allowing the Indian investors a wider choice of fund schemes. The
first private sector mutual fund company was registered in July 1993, the erstwhile Kothari
Pioneer (now merged with Franklin Templeton). The industry now functions under the SEBI
(Mutual Fund) Regulations 1996.
In the last few years, household’s income levels have grown significantly, leading to
commensurate increase in household’s savings. Household financial savings (at current
prices) registered growth rate of around 17.4% on an average during the period FY04-FY08
as against 11.8% on an average during the period FY99-FY03. The considerable rise in
household’s financial savings, point towards the huge market potential of the Mutual fund
industry in India.
Besides, SEBI has introduced various regulatory measures in order to protect the interest of
small investors that augurs well for the long term growth of the industry. The tax benefits
allowed on mutual fund schemes (for example investment made in Equity Linked Saving
Scheme (ELSS) is qualified for tax deductions under section 80C of the Income Tax Act)
also have helped mutual funds to evolve as the preferred form of investment among the
salaried income earners.
Besides, the Indian Mutual fund industry that started with traditional products like equity
fund, debt fund and balanced fund has significantly expanded its product portfolio. Today,
the industry has introduced an array of products such as liquid/money market funds,
sectorspecific funds, index funds, gilt funds, capital protection oriented schemes, special
category funds, insurance linked funds, exchange traded funds, etc. It also has introduced
Gold ETF fund in 2007 with an aim to allow mutual funds to invest in gold or gold related
instruments. Further, the industry has launched special schemes to invest in foreign
securities. The wide variety of schemes offered by the Indian Mutual fund industry provides
multiple options of investment to common man.
The Mutual Fund Industry has another regulator in India, namely Association of Mutual
Funds in India (AMFI) which is the body under which the distributors of Mutual Funds have
to get themselves registered to carry out distribution of Mutual Fund Schemes.
22 | P a g e
The Mutual Fund Industry is currently going through a transformation stage. On side we see
rigid and stringent norms of the governing bodies and on the other side we see the economy
as whole still jostling out to recover from the worldwide economic and financial crisis of
2008-2009.
The Indian Economy has a 7.4% growth rate of Gross Domestic Product (GDP) and has great
potential to reach into double digits backed by a strong support.
2.4 Advantages of Mutual Funds
Professional Money Management

Fund managers are primarily responsible for implementing a consistent investment
strategy that synchronizes and reflects the goals of the fund. Fund managers
constantly monitor the market movements and economic trends and analyze securities
in order to make informed and better investment decisions. Professionals are always
better than novice people and hence add value to the investments.
23 | P a g e
Diversification
Diversification is one of the world’s best ways to mitigate risk. Mutual funds offer
investors an opportunity to diversify their investments across various cadre of assets
depending on their investment needs. Instead of parking funds in any particular stock,
it is definitely better to diversify it into various avenues so that even if one sector is
not doing well, some other sector’s profit will help to keep the investment intact.
Liquidity
Investors can sell off the mutual fund units held by them on any particular business
day and also receive the current market value on their sold investments within a very
short time period (normally three- to five-days). Non blockage of funds for a long
time is a major advantage of mutual funds.
Affordability
The minimum initial investment for a mutual fund is quite low for most funds (as low
as Rs 500 for some schemes), so one does not need to wait to save thousands before
actually saving through mutual funds.
Convenience
Most of the private sector funds provide the convenience of periodic purchase plans,
automatic withdrawal plans and also the automatic reinvestment of interest and
dividends
Mutual funds also provide with the detailed reports and statements that make
recordkeeping simple. One can easily monitor and periodically check the performance
of the funds simply by just reviewing the business pages of most newspapers or just
by using the online Mutual Funds section.
Flexibility and variety

One can pick from a variety of options to invest ranging from conservative, blue-chip
stock funds, sectoral funds, funds that aim to provide income with modest growth or
even those that take big risks in the search for returns. There is a choice of buying
balanced funds, or those which combine stocks and bonds in the same fund.
Tax benefits
Tax benefits on Investment in Mutual Funds
1) 100% Income Tax exemption on all Mutual Fund dividends

2) Equity Funds - Short term capital gains is taxed at 15%.
Debt Funds - Short term capital gains is taxed as per the slab rates applicable to
individual investor. Long term capital gains tax to be lower of either 10% on the
24 | P a g e
capital gains without factoring indexation benefit and 20% on the capital gains after
factoring indexation benefit.
3) Open-end funds with equity exposure of more than 65% (Revised from 50% to
65% in Budget 2006) are exempt from the payment of dividend tax for a period of 3
years from 1999-2000.
An investor can get a tax benefit in schemes like ELSS (equity linked saving scheme). Some
schemes like the Tax Saver Schemes allow people to get tax savings on their investments
under various sections of Chapter VI-A of the Income Tax Act.
Note: Equity Funds are those where the investible funds are invested in equity shares in
domestic companies to the extent of more than 65% of the total proceeds of such funds.
2.5 Drawbacks of Mutual Funds
Some of the Disadvantages of investing in Mutual Funds are given below:

Potential loss
Unlike a bank deposit, the investment in a mutual fund could fall in value, as the fund is nothing
bur a portfolio of different securities. Apart from a few assured returns schemes, the fund does
not guarantee any minimum percentage of return.
The Diversification Penalty
While diversification reduces the risk of loss from holding a single security, it also limits the
larger gains if a single security increases dramatically in value. Also, diversification does not
protect the unit holders totally from an overall decline in the market.
Risks Involved
Changing market conditions can create fluctuations in the value of a Mutual Fund investment.
There are fees & expenses associated with investing in Mutual Funds that do not usually occur
when purchasing individual securities directly. As with any type of investment, there are
drawbacks associated with Mutual Funds.
No Guarantees
The value of your Mutual Fund investment, unlike a bank deposit, could fall & be worth less
than the principle initially invested. And, while a money market fund seeks a stable share price,
25 | P a g e
its yield fluctuates, unlike a certificate of deposit. In addition, Mutual Funds are not insured or
guaranteed by an agency of the U.S. government. Bond funds, unlike purchasing a bond
directly, will not re-pay the principle at a set point in time.
The Diversification Penalty

While diversification reduces the risk of loss from holding a single security, it also limits the
larger gains if a single security increases dramatically in value. Also, diversification does not
protect the unit holders totally from an overall decline in the market.
Hidden Costs
In some cases, the efficiencies of fund ownership are offset by a combination of sales
commissions, 12b-1 fees, redemption fees, & operating expenses. If the fund is purchased in
a taxable account, taxes may have to be paid on capital gains. Keep track of the cost basis of
your initial purchase & new shares that are acquired by reinvesting distributions. It's important
to compare the costs of funds you are considering. Always look at "net" returns when
comparing fund performances. Net return is the bottom line; an investment's true return after
all costs is deducted.
Prospectuses will not contain all the costs that affect the net return on your investment. This is
why it is important to compare net returns whether or not the fund in a no-load or load fund.
Expenses
Because Mutual Funds are professionally managed investments, there are management fees
& operating expenses associated with investing in a fund. These fees & expenses charged by
the fund are passed onto shareholders & deducted from the fund's return.
These expenses are typically expressed as the expense ratio - the percent of fund assets spent
(annually) on day-to-day operations. Expense ratios can vary widely among funds. Expense
ratios for Mutual Funds commonly range from 0.2% to 2.0%, depending on the fund. Consult
the fund's prospectus to determine the expense ratio for a specific fund.
2.6 STEPS TO INVEST IN MUTUAL FUND:-

Step one - Identify your investment needs.
26 | P a g e
Your financial goals will vary, based on your age, lifestyle, financial independence, family
commitments, and level of income and expenses among many other factors. Therefore, the first
step is to assess your needs. Begin by asking yourself these questions:
1. What are my investment objectives and needs? Probable Answers: I need regular income
or need to buy a home or finance a wedding or educate my children or a combination of all
these needs.
2. How much risk am I willing to take? Probable Answers: I can only take a minimum amount
of risk or I am willing to accept the fact that my investment value may fluctuate or that there
may be a short-term loss in order to achieve a long-term potential gain.
3. What are my cash flow requirements? Probable Answers: I need a regular cash flow or I
need a lump sum amount to meet a specific need after a certain period or I don't require a
current cash flow but I want to build my assets for the future.
By going through such an exercise, you will know what you want out of your investment and
can set the foundation for a sound Mutual Fund investment strategy.
Step two - Choose the right Mutual Fund.
Once you have a clear strategy in mind, you now have to choose which Mutual Fund and
scheme you want to invest in. The offer document of the scheme tells you its objectives and
provides supplementary details like the track record of other schemes managed by the same
Fund Manager. Some factors to evaluate before choosing a particular Mutual Fund are:
 The track record of performance over the last few years in relation to the appropriate
yardstick and similar funds in the same category.
 How well the Mutual Fund is organized to provide efficient, prompt and personalized
service.
 Degree of transparency as reflected in frequency and quality of their communications.
Step three - Select the ideal mix of Schemes.

Investing in just one Mutual Fund scheme may not meet all your investment needs. You may
consider investing in a combination of schemes to achieve your specific goals.
Step four - Invest regularly

For most of us, the approach that works best is to invest a fixed amount at specific intervals,
say every month. By investing a fixed sum each month, you buy fewer units when the price is
higher and more units when the price is low, thus bringing down your average cost per unit.
This is called rupee cost averaging and is a disciplined investment strategy followed by
investors all over the world. With many open-ended schemes offering systematic investment
plans, this regular investing habit is made easy for you.
Step five - Keep your taxes in mind
If you are in a high tax bracket and have utilized fully the exemptions under Section 80L of the
Income Tax Act, investing in growth funds that do not pay dividends might be more tax
27 | P a g e
efficient and improve your post-tax return. If you are in a low tax bracket and have not utilized
fully the exemption available under Section 80L, selecting funds paying regular income could
be more tax efficient. Further, there are other benefits available for investment in Mutual Funds
under the provisions of the prevailing tax laws. You may therefore consult your tax advisor or
Chartered Accountant for specific advice.
Step six - Start early
It is desirable to start investing early and stick to a regular investment plan. If you start now,
you will make more than if you wait and invest later. The power of compounding lets you earn
income on income and your money multiplies at a compounded rate of return.
Step seven - The final step
All you need to do now is to get in touch with a Mutual Fund or your agent/broker and start
investing. Reap the rewards in the years to come. Mutual Funds are suitable for every kind of
investor-whether starting a career or retiring, conservative or risk taking, growth oriented or
income seeking.
2.7 INVESTMENT DECISIONS IN MUTUAL FUNDS SCHEMES
Choosing a Fund
Choosing a fund is similar to choosing a stock. As with a stock, you need to do research &
decide which fund is best for your investment goals. If you have a short time horizon & are
reasonably risk adverse you may want to consider growth & income funds. If you are investing
for the longer-term & feel like you can take a risk, you may want to look at aggressive growth
funds.
After choosing a fund category, you will need to look for specific funds. The Ameritrade site,
like others on the Web, will allow you to look up funds by family. A fund family is the group
of funds run by one company.
At some sites, you can also view a Mutual Fund screen. In a fund screen, you can enter criteria
that you would like to find in a fund. For example, you can search for no-load growth & income
funds having investment returns greater than 5%.
This Fund Fact screen will provide much of the information you need to make an informed
decision. The information you should look for is outlined below:
28 | P a g e
Basics
This section provides basic information on the fund such as the fund family, its categories, its
NAV, & how much it has invested in the market.
Minimums
Some funds have minimum initial & subsequent investments of Rs.1000 or more. Note that
these minimums may vary for regular investments & IRAs.
Fees
This section lists all the fees involved with buying into, carrying and/or selling your shares in
the fund. The list should include the loads, the 12b-1 fee, the management fee & the expense
ratio.
Fundamental Statistics
This provides some important statistics such as mention in industry statistics section.
2.7.1 PORTFOLIO ANALYSIS TOOLS
With the increasing number of mutual fund schemes, it becomes very difficult for an investor
to choose the type of funds for investment. By using some of the portfolio analysis tools, he
can become more equipped to make a well informed choice. There are many financial tools to
analyze mutual funds. Each has their unique strengths and limitations as well. Therefore, one
needs to use a combination of these tools to make a thorough analysis of the funds.
The present market has become very volatile and buoyant, so it is getting difficult for the
investors to take right investing decision. so the easiest available option for investors is to
choose the best performing funds in terms of “returns” which have yielded maximum returns.
But if we look deeply to it, we can find that the returns are important but it is also important to
look at the ‘quality’ of the returns. ‘Quality’ determines how much risk a fund is taking to
generate those returns. One can make a judgment on the quality of a fund from various ratios
such as standard deviation, Sharpe ratio, beta, treynor measure, R-squared, alpha,
portfolio turnover ratio, total expense ratio etc.
29 | P a g e
Now I have compared two funds of SBI on the basis of standard deviation, beta, R-squared,
Sharpe ratio, portfolio turnover ratio and total expense ratio. So before going into details, let’s
have a look at these ratios:
Standard deviation
In simple terms standard deviation is one of the commonly used statistical parameter to measure
risk, which determines the volatility of a fund. Deviation is defined as any variation from a
mean value (upward & downward). Since the markets are volatile, the returns fluctuate every
day. High standard deviation of a fund implies high volatility and a low standard deviation
implies low volatility.
Beta analysis
Beta is used to measure the risk. It basically indicates the level of volatility associated with the
fund as compared to the market. In case of funds, as compared to the market. In case of funds,
beta would indicate the volatility against the benchmark index. It is used as a short term
decision making tool. A beta that is greater than 1 means that the fund is more volatile than the
benchmark index, while a beta of less than 1 means that the fund is more volatile than the
benchmark index. A fund with a beta very close to 1 means the fund’s performance closely
matches the index or benchmark.
The success of beta is heavily dependent on the correlation between correlation between a fund
and its benchmark. Thus, if the fund’s portfolio doesn’t have a relevant benchmark index then
a beta would be grossly inappropriate. For example if we are considering a banking fund, we
should look at the beta against a bank index.
R-Squared (R2)
R squared is the square of ‘R’ (i.e.; coefficient of correlation). It describes the level of
association between the fun’s market volatility and market risk. The value of R- squared ranges
from0 to1. A high R- squared (more than 0.80) indicates that beta can be used as a reliable
measure to analyze the performance of a fund. Beta should be ignored when the r-squared is
low as it indicates that the fund performance is affected by factors other than the markets.
For example:
30 | P a g e
Case 1 Case 2
R2 0.65 0.88
B 1.2 0.9
In the above tableR2 is less than 0.80 in case 1, implies that it would be wrong to mention that
the fund is aggressive on account of high beta. In case 2, the r- squared is more than 0.85 and
beta value is 0.9. It means that this fund is less aggressive than the market.
Sharpe ratio: Sharpe ratio is a risk to reward ratio, which helps in comparing the returns given
by a fund with the risk that the fund has taken. A fund with a higher Sharpe ratio means that
these returns have been generated taking lesser risk. In other words, the fund is less volatile
and yet generating good returns. Thus, given similar returns, the fund with a higher Sharpe
ratio offers a better avenue for investing. The ratio is calculated as:
Sharpe ratio = (Average return- risk free rate)

Standard Deviation
Portfolio turnover ratio
Portfolio turnover is a measure of a fund's trading activity and is calculated by dividing the
lesser of purchases or sales (excluding securities with maturities of less than one year) by the
average monthly net assets of the fund. Turnover is simply a measure of the percentage of
portfolio value that has been transacted, not an indication of the percentage of a fund's holdings
that have been changed. Portfolio turnover is the purchase and sale of securities in a fund's
portfolio. A ratio of 100%, then, means the fund has bought and sold all its positions within the
last year. Turnover is important when investing in any mutual fund, since the amount of
turnover affects the fees and costs within the mutual fund.
Total Expenses Ratio
A measure of the total costs associated with managing and operating an investment fund such
as a mutual fund. These costs consist primarily of management fees and additional expenses
such as trading fees, legal fees, auditor fees and other operational expenses. The total cost of
31 | P a g e
the fund is divided by the fund's total assets to arrive at a percentage amount, which represents
the TER:
Total Expense Ratio = (Total fund Costs/ Total fund Assets)
Portfolio Turnover
This tells you how much a fund trades in its stock. If its turnover is 100% or greater it means
that it changes its entire portfolio at least once a year. A fund having higher turnover will have
more expenses. Again, this can be positive or negative, but it is up to you to research the reasons
& decide whether or not you want to invest.
Alpha
It measures the performance of a fund, given its risk. In other words, it takes the returns of the
fund & compares them to the returns that would be predicted given the market's performance
& the fund's beta. If Alpha is positive, it means the fund outperformed expectations. If it is
negative, then the fund underperformed against expectations.
2.7.2 Allocations: Case
This will allow you to evaluate a fund's risk & investment philosophy by looking at the types
of assets in the portfolio, the sectors they invest in & their top 10 holdings. Over time, you can
compare these numbers to get a feel for how long a fund holds investments or assets. This can
be valuable information in deciding whether the fund's philosophy & risk matches your own.
Now we will analyze some of the equity fund SIP s of Aditya Birla Sun life with BSE 200 and
bank fixed deposits In a tabular format as well as graphical.
Scheme Name NUMBER OF Original Returns at FUND

INSTALMEN INVESTM BSE 200 RETURN
TS ENT S
Birla SL tax relief '96 144 1,44,000 5,53,190 16,84,008
Birla SL equity fund 114 1,14,000 3,88,701 6,69,219
32 | P a g e
Birla frontline equity 66 66,000 1,56,269 1,81,127
fund
In the above case, we have taken three funds of Birla sun life namely Birla sun life tax relief
’96, Birla sun life equity fund and Birla sun life frontline equity fund. All these three funds
follow the same benchmark ie; BSE 200. Here, we have shown how one would have benefitted
if he would have put his money into these schemes since their inception. And the amount even
is a meager Rs. 1000 per month.
Starting from Birla frontline equity fund, we could spot that if someone would have invested
Rs. 1000 per month resulting into total investment of Rs. 66000 then it would have amounted
to rs.156269 if invested in BSE 200 whereas the fund would have given a total return of Rs
181127. Now moving next to Birla sun life equity fund, a total investment of 114000 for a total
of 114 months at BSE 200 would have given a total return of Rs. 388701 whereas the fund
gave a total return of Rs. 669219, nearly double the return generated at BSE 200. And now the
cream of all the investments, Birla sun life tax relief ’96. A total investment of Rs. 144000 for
a period of 12 years at BSE 200 would have given total returns of just Rs. 553190 but the Birla
sun life tax relief ’96 gave an unbelievable total return of Rs 1684008.
Thus the above case very well explains the power of compounding and early investment. We
have seen how a meager amount of Rs. 144000 turned into Rs. 1684008. It may appear
unbelievable for many but SIPs have turned this into reality and the power of compounding is
speaking loud, attracting more and more investors to create wealth through SIPs.
2.8 DISTRIBUTION CHANNELS
PSU BANKS:
• Punjab National bank
• Central Bank of India
• State Bank of India
• Indian Bank
• Bank of India
• Union bank of India
PRIVATE BANKS AND FOREGIN BANKS:
33 | P a g e
• HDFC Bank
• ICICI Bank
• Axis Bank
• Kotak Bank
• Standard Charted Bank
• Citi Bank
• HSBC
• HDFC Securities
• Kotak Securities
• Bandhan Bank
NON NAMED BANKS:

• Andhra Bank
• United Bank of India
• Bank of Baroda
• Dena Bank
• Punjab & Sind Bank
• Indian Overseas Bank
• REPCO Bank
• The Jammu & Kashmir Bank Ltd.
• IndusInd Bank Limited
• The Bank of Rajasthan Limited ING Vysya Bank Ltd.
• Catholic Syrian Bank
• Tamil ad Mercantile Bank Ltd.
• The Federal Bank Ltd.
• The South Indian Bank Ltd. Ahmadabad Mercantile Co-op Bank Janata Sahakari
Bank Ltd.
• The Cosmos Co-op. Bank Ltd.
• New India Co-op. Bank Ltd.
• Punjab & Maharashtra Co-op. Bank Ltd.
• The Sara swats Co-op. Bank Ltd.
2.9 SEBI Regulations Regarding Mutual Fund
The SEBI regulations for the establishment and issue of schemes by mutual funds are as
follows:
 Mutual fund shall be established in the form of trusts under the Indian Trust Act and
managed by separately formed Asset Management Company.
 Money market mutual fund would be regulated by the RBI and other mutual funds
would be regulated by SEBI.
34 | P a g e
 Fifty per cent members of the board of AMC must be independent directors and must
have no connection with sponsoring organization.
 The directors should have at least 10 years’ experience in the field of portfolio
management, financial administration, etc.
 The AMC should have a minimum net worth of Rs. 10 crores.
 The SEBI has the authority to withdraw the authorization of AMC if they fail to work
for the interest of investors. This stipulation is not applicable to banks sponsoring
mutual funds.
 An AMC cannot act as the AMC for another mutual fund.
 AMCs are also allowed to do other fund based businesses such as providing investment
management services to offshore funds, other mutual funds, venture capital funds, and
insurance companies.
 The minimum amount to be raised with each closed-end scheme should be Rs. 20 crores
and for the open-ended scheme Rs. 50 crores.
 Each scheme of the mutual fund is registered with SEBI before it is floated in the
market.
 Closed-end schemes should not be kept open for subscription for more than 45 days.
For open-ended schemes, the first 45 days should be considered for determining the
target figure.
 If the minimum amount or 60% of the target amount is not raised, the entire subscription
has to be returned to the investors.
 For each scheme, there should be a separate and responsible fund manager.
 The SEBI guidelines (1999) restrict MFs to invest not more than 10% of NAV of a
scheme in shares or share related instruments of a single company.
 SEBI increased the maximum investment limit for MFs in listed companies from 5 to
10% of NAV in respect of the open-ended funds.
 The initial issue expenses should not exceed 6% of the funds raised under each scheme.
 All mutual funds must distribute a minimum of 90% of their profits in any given year.
 Every mutual fund is required to send the audited annual statements of accounts and six
months unaudited accounts of net assets for each of its schemes to the SEBI.
 The SEBI shall lay down a common advertising code for all mutual funds to comply
with.
35 | P a g e
 The SEBI after due investigation may impose penalty on mutual funds for violating the
guidelines.
Chapter 3
MAIN TEXT
3.1 B2B Sales

B2B sales is short for business-to-business sales. It refers to an activity where a business is
selling its products or services (=creating value) to another business. It is distinct from B2C
or business-to-consumer sales, which mean sales to individuals rather than businesses.
The key features in B2B sales are the following:
• Larger average transactions than in B2C. Business-to-business transactions are

often thousands of dollars and can reach millions or even billions. A shop that sells
shoes, for example, buys the shoes from a wholesaler 1000 pieces a time but sell them
one by one (or rather two by one).
• Professional decision-making. The average shoe shopper buys maybe two pairs of
shoes a year and has a million other things to do with their life as well. They are
happy to find a fitting shoe and go on with their lives (well, some people might
disagree on their level of professionalism when it comes to buying shoes but you get
the point). But when a B2B sales person goes to meet a shoe shop owner to sell them
some shoes, they are expected to face a lot more knowledgeable team of people
who’ll ask tough questions on the materials, supply chains and corporate
responsibility. B2B buyers are experts so a B2B sales person has to be an expert, too.
In B2B sales you have to find the right arguments to convince your counterpart.
• More stakeholders. Especially in the case of bigger deals a business-to-business
sales person has to convince not only one but many different stakeholders. Often
these stakeholders even have contradicting priorities. Someone working in marketing
wants the shoes to be from a well-known brand and someone in the purchasing wants
36 | P a g e
to make sure they are as cheap as possible. In B2B sales you are most often dealing
with more than one buyer from the same account. Charming one person is not enough
to close your deal.
• Longer time-to-purchase. On average business-to-business sales take longer to
close. When you are buying new shoes, you just go in the nearest shop and buy them.
On the other hand, when the shoe shop bought their last batch of shoes, selecting
which shoes, which colors and how many they would buy involved decisions from the
CEO, marketing manager, store manager and a consultant, and litres of coffee and
dozens of PowerPoint presentations and Excel sheets. Don’t expect to get big deals
from your new B2B customers. Building trust takes time and you’ll probably be
handling smaller things until your new customer trusts you.
• Fewer prospects and customers. B2B customers usually have a lot higher LTV
(lifetime-value) than B2C customers. The pool from where a B2B business can draw
new customers is also smaller. When an underserved shoe shopper gets tired of
waiting and leaves angrily, another comes in (at least up to a point). This means that
B2B customers must be well taken care of. You don’t want to burn bridges with any
of
your prospects and especially you don’t want to lose your current customers. Getting
more customers is usually a lot more cumbersome and expensive than in B2C sales.
3.2 NEW MARKET OPPORTUNITIES ANALYSIS

A tool to identify and access the attractiveness of a business opportunity. It is a part of
the business planning or strategy processes wherein before undertaking a new product
or service, you analyse the market for it to determine probable profit and revenue from
it. One of the most important factors considered and analysed in market opportunity
analysis is the forecasted demand for the product or the service.
37 | P a g e
Steps that can be followed to analyse market opportunity analysis are:-
1. KNOWLEDGE OF MARKET
In today’s world the consumer has unlimited choices of spending his/her money on a
wide range of products and services. These choices are possible due to global
competition, rapid change, and needs and wants of buyers’. For a business to have
complete knowledge of their market, it is essential for them to perform a market analysis.
Through a market analysis, a business can:
I. identify business opportunities

II. evaluate existing and potential competition
III. guide the choice of who they should target
IV. indicate the customer requirements that will be satisfied by their marketing position
strategy
38 | P a g e
To be successful, business must pay constant attention to their market. This should be
done so a small business can see shifting requirements of buyers, be able to evaluate
change in competitive position, and recognize opportunities for new products and
services.
2. AWARENESS
It is very important for a business person to understand the factors affecting market
complexity because these factors can explain why markets change. If there is a
complete understanding of why markets change the business will be in a better position
to anticipate market change and competitive threats. Markets usually change for four
reasons:
1. the shifts in buyers’ needs

2. new technologies
3. socioeconomic forces
4. competitive action
Anticipating ones' market can be done thought mapping or diagraming of your market.
Mapping or diagraming is done to help you conceptualize and understand every aspect
of your market. After mapping or diagraming, a business may be in a position to
examine all aspects and anticipate the future so they can act (instead of react)
accordingly.
3. MARKET OPPERTUNITY ANALYSIS
The majority of strategic decisions made by a business can be done through identifying and
analyzing your product. This is an approach that can be done in a five step process.
a. Defining Product Market Boundaries and Structure
You need to identify the scope of your product. This should include aspects
such as markets, market size and composition, and the brand or categories that
you will be competing with. Here are two possible approaches that can help you
successfully define your specific boundaries and structures.
Approach #1: The Hierarchical Approach
Start with a generic need category of interest to your business. Next,
identify products or services that fit into that category. Finally,
determine what different markets can use your products or services.
Approach #2: The Structural Approach

The idea of this approach is to link families of a product markets. This
method defines the generic product market so that it contains all
competing specific product market categories.
39 | P a g e
b. Describing and Analyzing End-Users
You need to identify and describe characteristics of buyers in your consumer
market. You want to determine why people buy the product or service that you
are offering. Make sure to also identify the external factors that influences
buyers. Once you have identified the characteristics, reasons and external
factors it would be helpful for you to compile customer profiles.
c. Industry Analysis
It is important for you to know all aspects of the industry that you are a part of.
Therefore, it would be helpful for you to perform a study that analyzes the
companies that make up your specific industry. In doing this you would want to
develop descriptive information of the industry and its members. Included in this
analysis:
o Industry size, growth, and composition, o
typical market practices o industry
changes that are anticipated o industry
strengths and weaknesses.
d. Value Added System Analysis

The Value-Added System is a study supplier and distribution channels. This can
identify important patterns and trends in serving end users, uncover new market
opportunities, and forecast the end-users demands.
e. Analysis of Key Competitors

Industries are very large today compared to the past, so you must identify who
are your key competitors. These competitors can be selling the same type or
product or service as your business, or a different product or service that enduses
would choose instead of your product or service. When analyzing the
competition, helpful information about each key competitor would be:
o estimated overall business strengths o
present market share and past trends o
financial strengths and performance o
management capabilities and limitations o
technical and operating advantages o
Description and assessment of strengths and
limitations of market strategies.
f. Market Sizes Estimation

It is important to know where your small business stands in the market. To
determine where your small business ranks in market potential, sales, and
40 | P a g e
market share there are three measures of market size that can be used by your
small business.
4. MARKET SEGMENTATION
Now that you have an understanding of where your small business stands, it is time to
take all the information you have collected and use it to segment your market. Market
segmentation is the process of identifying and analyzing the buyers in a product market
with similar characteristics. Segmentation allows to match your products or services
with buyers’ requirements. Since you have already identified and analysed your buyers
you need to take it a step further. You would want to examine the differences among
your buyers and categorize them into subgroups of the total market. You can break
down your market characteristics using three major sub groups:
Demographic Characteristics
• Age
• Sex
• Income
• Education
• Stages in life cycle
• Social class
• Occupation
• Religion
• Race
Psychological Characteristics
• Personality
• Lifestyle
Geographic Characteristics
• Rural
• Urban, rural, suburban
• Region
• Climate
• City Size
• Population Density
3.3 NAV (Net Asset Value)
3.3.1 What is Net Asset Value (NAV) of a scheme?
41 | P a g e
Net Asset Value (NAV) denotes the performance of a particular scheme of a mutual fund.
Mutual funds invest the money collected from the investors in securities markets. In simple
words, Net Asset Value is the market value of the securities held by the scheme. Since
market value of securities changes every day, NAV of a scheme also varies on day-to-day
basis. The NAV per unit is the market value of securities of a scheme divided by the total
number of units of the scheme on any particular date. For example, if the market value of
securities of a mutual fund scheme is Rs 200 lakhs and the mutual fund has issued 10 lakhs
units of Rs. 10 each to the investors, then the NAV per unit of the fund is Rs.20. NAV is
required to be disclosed by the mutual funds on a regular basis - daily or weekly - depending
on the type of scheme.
The net assets value (NAV) is the actual value of one unit of a given scheme on any given
business day. The NAV reflect the liquidation value of the funds’ investments on that particular
day after accounting for all expenses. It is calculated by deducting all liabilities except unit
capital of the fund from the realizable value of all assets and dividing it by number of units
outstanding.
3.3.2 Calculation of NAV
Net Asset Value = Market value of investments+ Current asset & other
assets + Accrued income – Current liabilities – Accrued expenses
NAV= Market Value of Assets – Liabilities

Units Outstanding
NAV of the current schemes:
42 | P a g e
Chg. from 52 Weeks 52 Weeks
Fund Name NAV As on As on As On
previous High Low
Aditya Birla SL
Apr 12, Aug 31, Feb 19,
Frontline 26.49 0.35 29.09 24.04
2019 2018 2019
Equity-D
Aditya Birla SL
Apr 12, Aug 31, Oct 26,
Frontline 226.06 0.35 231.20 199.24
2019 2018 2018
Equity-G
Aditya Birla SL 132.57 Apr 12, 2019 0.24 144.83 Aug 28, 2018 125.47 Feb 18, 2019
Equity Hybrid '95-D
Aditya Birla SL 754.65 Apr 12, 2019 0.24 781.59 Aug 28, 2018 690.75 Oct 26, 2018
Equity Hybrid '95-G
Aditya Birla SL 99.24 Apr 12, 2019 0.29 110.75 Aug 31, 2018 89.18 Feb 18, 2019
Equity-D
Aditya Birla SL 731.82 Apr 12, 2019 0.29 752.64 Aug 31, 2018 643.78 Oct 26, 2018
Equity-G
Aditya Birla SL Tax 31.88 Apr 12, 2019 0.47 33.66 Sep 03, 2018 28.14 Oct 26, 2018
Relief 96-G
Aditya Birla SL Tax 151.13 Apr 12, 2019 0.47 171.35 Sep 03, 2018 139.17 Feb 19, 2019
Relief 96-D
Aditya Birla SL 10.24 Apr 12, 2019 0.44 10.24 Apr 12, 2019 10.01 Mar 12, 2019
Retirement Fund -
The 30s Plan Reg-D
Retirement Fund -
The 30s Plan Reg-G
Retirement Fund -
The 40s Plan Reg-D
Retirement Fund -
The 40s Plan Reg-G
Aditya Birla SL 10.04 Apr 12, 2019 -0.03 10.07 Apr 02, 2019 10.01 Mar 12, 2019
Retirement Fund -
The 50s Plan Reg-D
Retirement Fund -
The 50s Plan Reg-G
Retirement Fund -
The 50s Plus - Debt
Plan Reg-D
Retirement Fund -
The 50s Plus - Debt
Plan Reg-G
43 | P a g e
3.4 Different schemes under ABSL:
3.4.1 Aditya Birla Sun Life Frontline Equity Fund
Change from previous, NAV as on Apr 12, 2019: 0.35%
Growth: R 226.06
Dividend: R 26.49
Category: Equity: Large Cap
Assets: R 22,175 crore (As on Mar 31, 2019)
Expense: 1.97% (As on Feb 28, 2019)

Basic Details
Fund House: Aditya Birla Sun Life Mutual Fund
Launch Date: Aug 30, 2002
Benchmark: NIFTY 50 Total Return
Riskometer: Moderately High
Risk Grade: Below Average
Return Grade: Above Average
Turnover: 50%
Type: Open-ended
Investment Details
Return since Launch: 20.63%
Minimum Investment (R) 100
Minimum Addl Investment (R) 100
Minimum SIP Investment (R) 100
Minimum No of Cheques 6
Minimum Withdrawal (R) 1
Minimum Balance (R) -
Exit Load (%) 1% for redemption within 365 days
44 | P a g e
Performance
YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Fund 4.54 2.48 5.10 4.87 13.17 13.93 17.45
S&P BSE Sensex 50 TRI 6.88 3.07 7.60 12.29 16.81 13.35 15.76
Category 5.83 2.44 6.65 8.68 14.72 12.64 14.40
Rank within Category 77 67 85 69 60 13 3
Number of funds in category 99 105 100 91 76 62 39
Fund Rating Launch 1-Year 3-Year 5-Year Expense Ratio Assets

Ret Ret Ret (%) (Cr)
Aditya Birla Sun Life Frontline Equity Aug- 4.87 13.17 13.93 1.97 22,175
Fund 2002
Aditya Birla Sun Life Focused Equity 5.37 13.19 14.01 2.03 4,268
Oct-2005
Fund
14.73 16.71 12.61 0.08 18

ICICI Prudential Sensex ETF Jan-2003
-4.96 15.01 15.90 0.23 1,229

Reliance ETF Junior BeES Feb-2003
1.83 11.76 15.19 1.96 22,100

SBI Bluechip Fund Feb-2006
Peer Comparison
3.4.2 Aditya Birla Sun Life Equity Hybrid '95 Fund
45 | P a g e
(Erstwhile Aditya Birla Sun Life Balanced '95 Fund)
Growth: R 754.65
Dividend: R 132.57
Category: Hybrid: Aggressive Hybrid
1.97% (As on Feb 28, 2019) Expense:
Basic Details
Launch Date:
Feb 10, 1995
Benchmark:
Riskometer:
CRISIL Hybrid 35+65 Aggressive
Risk Grade:
Moderately High
Return Grade:
Turnover:
Average
Type:
Average
76%
Open-ended
Investment Details
46 | P a g e
Exit Load (%) For units in excess of 15% of the investment,1% will be charged for redemption within 365 days
Performance
Fund 2.78 0.97 3.36 0.16 10.79 13.73 16.14
VR Balanced TRI 6.50 2.71 7.04 11.81 14.53 11.96 12.95
Category 3.88 1.75 4.27 2.89 11.82 13.02 14.76
Peer Comparison
Fund Rating 1-Year 3-Year 5-Year Expense Ratio Assets
Launch Ret Ret (%) (Cr)
Ret
Aditya Birla Sun Life Equity Hybrid '95 Feb-1995 0.16 10.79 13.73 1.97 13,672
Fund
Canara Robeco Equity Hybrid Fund - Feb-1993 6.96 13.11 14.81 2.39 2,019
Regular Plan
Nov- 14.43 15.14 1.99 26,564

ICICI Prudential Equity & Debt Fund
5.88 1999
Jan-2000 2.96 16.10 14.60 2.09 1,739

Principal Hybrid Equity Fund
Dec- 6.14 11.97 14.83 1.97 29,672

SBI Equity Hybrid Fund
1995
3.4.3 Aditya Birla Sun Life Equity Fund
Growth: R 731.82
Dividend: R 99.24
47 | P a g e
Category: Equity: Multi Cap

Basic Details
Launch Date: Aug 27, 1998
Benchmark: S&P BSE 200 TRI
Return Grade: High
Turnover: 50%
Type: Open-ended
Investment Details
Exit Load (%) 1% for redemption within 365 days
Performance
Fund 4.14 2.57 5.22 2.69 15.96 17.42 18.16
S&P BSE 200 TRI 5.86 2.76 6.71 8.34 16.12 14.05 16.08
Category 4.92 2.11 5.41 2.53 13.98 14.94 17.20
48 | P a g e
Fund Rating Launch 1-Year Ret 3-Year Ret 5-Year Ret Expense Ratio (%) Assets
(Cr)
Aditya Birla Sun Life Equity Fund Aug-1998 2.69 15.96 17.42 1.97 11,019
Oct-1994 7.92 15.67 16.14 2.37 3,521

ICICI Prudential Multicap Fund
Oct-2000 -1.26 16.41 15.94 2.39 875

Principal Multi Cap Growth Fund
Mar-2001 3.39 14.05 17.86 2.50 7

Quant Active Fund
Oct-2004 4.26 15.29 18.84 2.24 4,033

SBI Focused Equity Fund
Peer Comparison
3.3.4 Aditya Birla Sun Life Tax Relief 96
Dividend: R 151.13
Growth: R 31.88
Category: Equity: ELSS

49 | P a g e
Basic Details
Launch Date: Mar 29, 1996
Benchmark: S&P BSE 200 TRI
Return Grade: High
Turnover: 1%
Type: Open-ended
Investment Details
Minimum Balance (R) 500
Exit Load (%) 0

Performance
Fund 3.17 2.15 4.68 1.01 14.85 18.34 18.60
S&P BSE 200 TRI 5.86 2.76 6.71 8.34 16.12 14.05 16.08
Category 4.27 2.04 5.05 0.82 13.72 14.96 16.73
50 | P a g e
As on Apr 12, 2019
Peer Comparison
Fund Rating Launch 1-Year 3-Year 5-Year Expense Ratio Assets

Ret Ret Ret (%) (Cr)
Aditya Birla Sun Life Tax Relief Mar-1996 1.01 14.85 18.34 2.21 8,599
96
Nov- 6.85 14.77 16.71 2.58 888

Kotak Tax Saver Regular Plan
2005
Mar-1996 -1.78 16.14 15.75 2.85 408

Principal Tax Savings Fund
Quant Tax Plan Apr-2000 4.15 16.06 19.54 2.50 10
Mar-1996 2.51 15.03 17.59 2.10 1,770

Tata India Tax Savings Fund
51 | P a g e
Chapter – 4
4.1 OBJECTIVES OF THE STUDY
1. To gain knowledge about Mutual Funds and its work flow in the company.
2. To find out the Preferences of the investors for Asset Management Company.
3. To know about objective & expectations of mutual fund investors.
4. To know about the most favored mutual fund Company among investors.
5. To know about the satisfaction level of mutual fund investors.
6. Through the project create awareness among the retail investor about mutual funds and
attracts them to invest in shares.
4.2 METHODOLOGY
Research simply means a search for facts- answers to questions and solutions to problem.
It is a purposive investigation. It is also called an “organized inquiry” .It seeks to find
explanations to unexplained phenomenon, to clarify the doubtful prepositions and to correct
the misconceived facts.
 Collection Of Data :
The primary data are collected with the help of Questionnaire through survey and
interviews of clients and bank employees.
 Questionnaire Design :
Open Ended & Close Ended
 Location :
Delhi (West Region)
 Sample Size :
100 Mutual Fund Investors
 The Secondary Data Are Collected From :
52 | P a g e
o Internet o Other
related books o
Newspapers &
magazines o
Broachers of the
company
 Limitations :
o Time constraints o Lack of enough
resources o Cost constraints o Lack
of experience o Unavailability of
confidential data
 Research Plan:
For the execution of research, the given steps are taken:
Introduction Of Mutual Funds
Background and History Mutual Funds
About Mutual Funds
Governance Of Mutual Funds
Research Design
4.3 ANALYSIS & FINDINGS
Questionnaire analysis
For checking the investor’s expectations towards a mutual fund company, I have interviewed
100 people. I used questionnaire technique for collecting the data. The analysis and collected
data is interpreted as follows
Q.1) What is your Annual income?
It is very necessary to have an idea about how much does a person earn in a single year, means
what is his annual income. As we all know that the investments made by any person is solely
depends on how much he earns.
53 | P a g e
All of my respondents are Mutual Fund Investors in any of the mutual fund company. I have
got information that which of the annual group is investing in mutual fund as follows:
Income Groups No. of Respondents
Less than Rs. 1 Lac 7
Rs. 1 Lac to Rs.3 Lacs 45
Rs. 3 Lac to Rs.5 Lacs 31
More than Rs. Lacs 17
ANNUAL INCOME
50
45
40
30 31
20
17
10
7
0
Less than Rs. 1 Rs. 1 Lac to Rs.3 Rs. 3 Lac to Rs.5 More than Rs.
Lac Lacs Lacs Lacs
Looking at the above figure one can see that the more number of the investors of the mutual
funds are the second annual group and that is for annual income of Rs. 1 Lac to Rs. 3 Lacs.
From the above received data I can see that this out of total mutual fund investor 45 % are from
that group only, which can be defined as a very big portion of the total investors, in this group.
These are the people who are not invested for the purpose of speculating but they required a
constant income from the investments.
On the other hand I can see that income group of Rs. 3 Lacs to Rs. 5 Lacs having 31 investors
in mutual fund out of total 100 investors. So, we can expect that people from this income groups
are also attracting to ward mutual fund now a days in expectation of earning stable income at
a lower risk level.
Q.2) What is your Objective for investments in Mutual funds?
All the benefits offered by the mutual funds can be included under the head objective for
investing in mutual Funds
The objective can be either good amount of return on the investments, or lower rate of risk in
term of threat for possible risk, or investment may be for the purpose of minimizing the Tax
liability or it can be for the saving purpose. These all are some of the major objectives for
Investments in Mutual Funds in India. There are some other objectives like investment
diversification, liquidity, assured allotment, transparency and also professional management,
54 | P a g e
these are not affecting much at the time of making decision regarding why one is going for
mutual fund investment.
At the time, when i asked what are the objectives of the investment at time of investing in any
Mutual Fund? I received following response:
No. of
Objective Respondents
Risk 11
Return 45
Tax Benefit 25
Savings 10
Diversification 0
Liquidity 0
Assured Allmnt. 0
Small Invst. 9
Transperency 0
Professional Mgt 0
Looking at the above chart, which is showing different objectives for Mutual Fund Investors to
invest in Mutual Funds, I can get idea that most of the mutual fund investors are always looking
55 | P a g e
towards how much return they are getting by investing in the mutual fund. About 45 % out of
our total investors respondents are investing in mutual fund for the purpose of having stable
return. As we know that most of the investors of mutual fund are selecting mutual funds for
investment only because mutual fund is the only investment which are offering a good and
stable return.
As about 45 % of total investors are from the income group of Rs. 1 lac to Rs. 3 lacs, so
obviously they are not investing for speculative or capital gain purpose, they always looking
for the higher return than Banks are offering to these investors but also at stable rate. So, same
is here also most of the investors’ objective for investing in mutual fund is only stable return.
According to the very first question about 45 % of our total investors respondents, are having
annual income between 1 Lac to 3 Lacs. So, most of them are falling under the tax paying
group. So, about 25 % of the total respondents are investing in mutual fund for the purpose of
minimizing their tax liability.
Minimum Risk in mutual funds and Savings are also two important objectives for investing in
mutual funds. As investors of mutual funds are don’t want to bear more risk burden on the
investment and savings.
Q.3) How much do you invest in Mutual Fund in a year?
After having a figure of the annual income of individual and also for what purpose he is
investing in a Mutual Fund. Now in the third question I have asked them about the investments
made in a year. With the help of this question I come to know that how much a person likes to
invest in mutual fund out of his total annual income in a year.
Investment in Mutual Fund No. of Respondents
Less than 10 % 16
10 % to 15 % 58
15 % to 20 % 25
More than 20 % 1
ANNUAL INVESTMENTS
60
58
50
40
30
25
20
10 16
1
0
Less than 10 % 10 % to 15 % 15 % to 20 % More than 20 %
56 | P a g e
So, looking at the above chart we can easily get the idea that most of the investors of all income
group are likely to invest about 10 % to 15 % of their total annual income in mutual funds. This
amount can be varying according to which income group that investor is which means if he is
from the income group of Rs. 1 Lac to Rs. 3 Lacs then his investment in mutual fund will be
up to Rs. 10000 to Rs. 45000 in a year.
As we all know that mutual fund are the investments which provide a stable and sure return at
a low rate of risk so, here all the investors making investments with that intensions only. Most
of the investors are having conservative approach so that they can earn stable return on one
hand and with bearing lower rate of risk for having loss on the other hand.
Thus out of the total 100 mutual fund investors about 58 % investors are investing about 10 %
to 15 % of their total annual income for a year.
57 | P a g e
Q. 4) In which Mutual fund company do you invest?
As there are about 38 companies are there in India which are providing service of Mutual Fund
Investments to investors. Here all the mutual fund companies are having different criteria for
providing these services.
Mutual Fund Company No. of Investors
UTI 30
Birla 20
SBI 10
HDFC 3
ICICI 5
Reliance 1
Frankline Templeton 5
HSBC 8
INGVysya 5
KOTAK Mahindra 0
Sahara MF 2
LIC 8
GIC 3
100
80
60
ny
Compa name
40
20
0
UTI SBI ICICI Franklin Ing Vysya Sahara GIC
Templeton
Looking at the above chart for Mutual Fund Companies in which investors are like to invest
more.
From the last some year Birla has got pace in Mutual Fund industry by providing different
mutual fund schemes to investors. Looking at the above chart we can got that idea. Thus, is
providing good competition to the UTI mutual funds. One of the reason for getting much
success by ABSL Mutual Funds in the Mutual Fund Industry, is also a Brand name of the
Aditya Birla in the Indian market.
51 | P a g e
59 | P a g e
Q.5) What influenced you to select that Mutual fund company?
To know about the expectations of Mutual Fund Investors, it was very necessary for me to know
the reason for selecting that company for the purpose of investments. For that I asked them
above mentioned question that “what is the reason for selecting that company”, whether it is
News Papers, Magazines, Television Advertisements, or any mutual funds Agent or is there
any friend or relative who influences you to select that company. In response to this I have got
information as under:
Reason for Selection No. of respondent

News Paper 37
Magazine 14
Agents 19
Friends/Relatives 22
Television Ads. 8
Others 0
Respondents
REASON FOR INVESTMENT
40
35 37
30
25
20 22
19
15
10 14
5 8
0
Others
0
Magazine Agents Television Ads.
Friends/Relatives
News Paper
Looking at the above chart one can measure that the main reason for investment in mutual fund
by any mutual investors. So, here what ever advertisements are being given by any of the mutual
funds company are much more effective than any other medias for information. According to
the chart we can say that about 37 % of the total investors were influenced by the advertisement
in news papers.
60 | P a g e
Second rank can be given to Friend and Relative of individual, with about 22 % of the total
investors influenced by that media. Here Agents of mutual fund are also proved very good
influencing point factor.
Q. 6) In which Mutual Fund Scheme do you invest?
For my research it was very important for me to know where the investors find the opportunities
with investment. Where the money should be invested is a question for discussion. Hence I
directly asked in which scheme they mostly invest. The results I got is as follows.
Scheme Respondent
Growth 40
Debt 20
Hybrid 30
Others 10
100
80
60
40 scheme
20
0
Growth Debt Hybrid Other
The given data shows that people are mostly interested in investing in growth scheme as they
want to be along term investor and thus they can ensure a better return. Moreover some
investors invest in hybrid scheme also so that they can have both types of benefit Growth and
Income.
Q.7) Are you satisfied with the performance of that Mutual fund?
This question is the most important question in my Questionnaire as this is the question which
will give information about the performance of the mutual fund. Here, i asked investors about
their satisfaction level for that mutual fund whether they are highly dissatisfied, dissatisfied or
satisfied, highly satisfied or not regarding their chosen fund’s performance.
From the satisfaction level on investors form the mutual fund i can measure the performance of
that mutual fund. Here one of the important thing to be noted that it might be possible that some
time though mutual fund has performed well as a whole then also investors is not satisfied with
the performance of that mutual fund, that can be possible only when mutual fund has not
performed well for the purpose why investor invested.
No. of
Satisfaction Level Respondents
61 | P a g e
Highly Dissatisfy 0
As, most of the investors of mutual funds are going for any mutual fund only after having proper
information about that mutual fund. And they are investing in that mutual fund only when they
are fully agree that the mutual fund will fulfill their objective for which they have selected that
mutual fund.
That is the reason why I have got more number of respondents who are Satisfied with the
performance of that mutual fund. And those investors are about 54 % of the total investors. On
the other hand 37 % are having a feeling of average satisfaction. So, at last one can say that
more than half of the mutual funds have satisfied their investors with their performance seeing
my sample.
Q:8 How much return do you expect for your invested money?
Normally people invest in mutual funds for getting the stable return so what is their exact
perception for returns is an important question for my analysis. My collected data if shown
diagrammatically is as follows.
Returns No. of
Respondents
< 5% 15
5%< 30
15%< 35
20%< 40
62 | P a g e
100
80
60
40
Returns
20
0
<5% 5% < 15% < 25%<
Seeing the above table one can conclude that most of the investors are looking for returns
which varies from 15 to 25. But in reality it is tough to get this much returns. There are
some people also who ask for normal rate of return i.e. more than 5 % Q:9 Which sector is
doing very well nowadays?
The above question gives a clear cut idea about what investors think about the mutual fund
industry. In the question they are given choice to select among the best financial instruments
available today. The collected data demonstrated the given results.
Industries Banking Insurance Mutual Real commodities stock Others
Funds Estate Markets
No. of 16 15 20 10 11 23 5
Respondents
50
40
30
20 Industries
10
0
Banking Mutual Funds Commodoties others
The above tabulation shows that most of the people still today consider stock markets as one
of the good place for the investment. The second rank goes to the mutual fund because they
give high returns and maintain the investors’ interest through providing better advisory and
information at reasonable cost.
4.4 Conclusion
The research here is to find out the investors’ need and preferences and what they
actually want in a mutual fund. After analysis of collected data, it is noted that still today
people want a handsome return with long term security in a fund.
63 | P a g e
Investors today invest in a fund where the fund objective is clear which is going to
produce positive returns for them in short period. Moreover they see the risk element as we
know today is the recession time so what would be the guarantee of making average returns in
a fund. So here the risk element plays dominant role. But overall one can see that the
investors have different needs and accordingly they choose a fund for e.g tax saving funds at
the end of financial year.
The report is based on both analysis where form one side it is evaluating what an
investor wants in a fund and the other side what successful funds have done for the better
future for their unit holders. At last I conclude that in India, mutual fund can be treated as a
booming industry for the investors and if the industry is conscious enough to take care of the
given analyzed points for the investor, it can do a lot better in the future seeing growth of the
industry with comparison to other developed countries like U.S. and U.K. and still there is a
need of proper understanding of mutual funds as I observed that many people don’t even
know the exact meaning of “what is a fund ??”
4.5 RECOMMENDATIONS
 The most vital problem spotted is of ignorance. Investors should be made aware of the
benefits. Nobody will invest until and unless he is fully convinced. Investors should be
made to realize that ignorance is no longer bliss and what they are losing by not investing.
 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.
 The advisors may try to highlight some of the value added benefits of MFs such as tax
benefit, rupee cost averaging, and systematic transfer plan, rebalancing etc. these benefits
are not offered by other options singlehandedly. So these are enough to drive the investors
towards mutual funds. Investors could also try to increase the spectrum of services offered.
 Now the most important reason for not availing the services of advisors was spotted was
being expensive. The advisors should try to charge a nominal fee at the beginning. But if
not possible then they could go for offering more services and benefits at the existing rate.
They should also maintain their decency and follow the code of ethics so that the investors
could trust upon them. Thus the advisors should try to attract more and more persons and
turn them into investors and finally their clients.
Chapter 5
64 | P a g e
References
• www.valueresearchonline.com
• www.moneycontrol.com
• www.amfiindia.com
• www.economictimes.indiatimes.com
• www.amfii.com
• www.mutualfundsindia.com www.finance.indiamart.com
• http//timesofindia.indiatimes.com
Shiwam Sharma
(Signature of Student)
65 | P a g e

Shiwam FinalReport2

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Shiwam FinalReport2

Uploaded by

Copyright:

Available Formats

FINAL PROJECT REPORT

MUTUAL FUNDS FRAMEWORK ABSL

ADITYA BIRLA SUN LIFE ASSET

SUMMER INTERNSHIP PROGRAM|ABSL AMC

Dr. Shubhagata Roy Mrs. Meha Rawat

Date of Submission: 12th May 2019

SUMMER INTERNSHIP PROGRAM|ABSL AMC

This is to certify that the Final Report titled “MUTUAL FUNDS

SUMMER INTERNSHIP PROGRAM|ABSL AMC

I gratefully acknowledge my college faculty guide, Dr. Shubhagata Roy for

HEADING TOPIC PAGE NO.

SUMMER INTERNSHIP PROGRAM|ABSL AMC

3.1 B2B SALES 32

SUMMER INTERNSHIP PROGRAM|ABSL AMC

Sun Life Financial

A Balasubramanian (CEO), Keerti Gupta (COO), Parag Joglekar (CFO), Shailesh

BSLAMC follows a long-term, fundamental research based approach to investment. The

 Achieving superior and consistent investment results.

2.2 Mutual Funds

Equity High Low High High Moderate

Co. FDs Moderate Low Low Low Moderate

Gold Moderate High Moderate Moderate Gold

Close-ended mutual fund Schemes have a fixed or stipulated maturity period

 On the basis of Investment Objective:

Some popular objectives of a mutual fund are:

Money Market In short-term money market instruments (including

By Structure By Investment Other Schemes

Open Close Ended Interva Tax Saving Special

Growth Balanced Income Money Sector Index

Equity linked savings scheme (ELSS)

Fixed Maturity Plans (FMP)

Offshore funds are specializing in investing in foreign companies or corporations. These

Money Market Schemes

2.4 Advantages of Mutual Funds

Professional Money Management

Flexibility and variety

1) 100% Income Tax exemption on all Mutual Fund dividends

2.5 Drawbacks of Mutual Funds

Some of the Disadvantages of investing in Mutual Funds are given below:

The Diversification Penalty

The Diversification Penalty

2.6 STEPS TO INVEST IN MUTUAL FUND:-

Step three - Select the ideal mix of Schemes.

Step four - Invest regularly

2.7 INVESTMENT DECISIONS IN MUTUAL FUNDS SCHEMES

2.7.1 PORTFOLIO ANALYSIS TOOLS

Sharpe ratio = (Average return- risk free rate)

Portfolio turnover ratio

Total Expenses Ratio

Total Expense Ratio = (Total fund Costs/ Total fund Assets)

2.7.2 Allocations: Case

Scheme Name NUMBER OF Original Returns at FUND

Birla SL equity fund 114 1,14,000 3,88,701 6,69,219

2.8 DISTRIBUTION CHANNELS

PRIVATE BANKS AND FOREGIN BANKS:

NON NAMED BANKS:

2.9 SEBI Regulations Regarding Mutual Fund

3.1 B2B Sales

The key features in B2B sales are the following:

• Larger average transactions than in B2C. Business-to-business transactions are

3.2 NEW MARKET OPPORTUNITIES ANALYSIS

I. identify business opportunities

1. the shifts in buyers’ needs