CONSUMER PERCEPTION UTI-Mutual-Fund

A Project Report
ON
CONSUMER PERCEPTION
AT
In Partial Completion of
Masters of Business Administration (MBA)
SUBMITED TO: SUBMITED BY:

ACKNOWLEDGEMENT
The completion of any task depends upon the co-operation, coordination and consolidated
efforts of several resources of knowledge, energy, time and above all the proper guidance of
the experienced. Therefore I approached this matter of acknowledgement through these lines
trying my best to give full credit where it deserves.
I wish to express my gratitude to those who generously helped me to compile this project
with their knowledge and expertise. Firstly, I owe a great debt to mr......., Chief Manager UTI
Mutual Fund, . Who were responsible for making this project possible.
They have given me the opportunity to choose this topic and the necessary guidelines
regarding the project to track first hand information and supporting me in the completion of
the project successfully, as well as insulating a belief in me which was essential for the
completion of this project. The learning during the project was of immense importance &
invaluable.
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INDEX
Sr. No. Subject Page No.

1. Executive Summary 5
2. UTI MF- An Introduction 6
3. Subsidiaries 7
4. Mutual Fund Assets Type 8
5. Vision and Mission 9
6. History 9
7. Mutual Fund- An Introduction 18
8. Corporate Profile 20
9. Rights of Unit holder 24
10. Organizational structure of MF 25
11. Awards 27
12. Different Investment Plan 28
13. Types of Mutual Fund 29
14. Products of UTI 34
15. SIP Returns 42
16. Key Terms 47
17. Area of Study 48
18. Consumer Buying perception- An Introduction 56
19. Research Methodology 61
20. Data Analyses and Interpretation 65
21. Key Findings 73
22. Conclusion 74
23. Learning 75
24. Recommendations 75
25. Questionnaire 77
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Executive Summary
UTI Mutual Fund is among one of the largest financial Institution. It is doing its business by
continuously delivering a differentiated product and services that provide high business value
in return.
The main objectives are
• To know the awareness of mutual fund amongst the investor
• To know the investors knowledge and perceptions about mutual fund.
• To know the investor priority level between different criteria of investment like safety
level, returns, liquidity, tax benefits and maturity etc. of investment.
• Find out reason for choice of mutual fund as an investment avenue.
Savings form an important part of the economy of any nation. With savings invested in
various Assets available to the people like Gold, Debt market, Insurance, Mutual funds,
Equity, Bank deposit etc the money acts as the driver for growth of the country. Indian
financial sector avails multiple avenues to the investors. A basic principle of investing is that
the investment avenue must match the investor's risk profile. Young investors have an edge
over others on account of their age. In other words, a young age investor has a big ratio of
disposable income. Now, India is seen as one of the best and deepest of markets in the world.
It has huge potential growth rate in mutual fund and different financial instruments to provide
reasonable options for an ordinary man to invest his savings and diversify the risk.
This report will seek to cover all the fundamental aspects relating to various investments
Asset classes which are available for the investors in India. This report will also tell us the
customer perception about different investment instruments which are available. In this
report, Researcher comparing the various investment options with their growth, returns, risks
etc.
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UTI Mutual Fund- An Introduction
UTI AMC is one of the best Asset Management Company in India. Recently, Mr. U.
K. Sinha has awarded as a best CEO of the year 2009 and Mr. Jaideep Bhattacharya has
awarded as best Marketing Personality of the year 2009.
UTI AMC is a company incorporated under companies act 1956. In UTI AMC the
investment agreement is executed between UTI Trustee Company Ltd and UTI AMC on
December 9 2002 UTI AMC was registered by SEBI to act as Asset Management Company
for UTI Mutual Fund vide its letter of January 2003.
The paid up capital of UTI AMC has been subscribed equally by four sponsors: State Bank of
India, Life Insurance Corporation of India, Bank of Baroda and Punjab National Bank.
UTIAMC, apart from managing the schemes of UTI Mutual Fund, also manages the schemes
transferred/migrated from the erstwhile Unit Trust of India, in accordance with the provisions
of the Investment Management Agreement, the Trust Deed, and the SEBI (Mutual Funds)
Regulations.
Current AUM of UTI Mutual Fund is Rs.78, 617 Crores* as on 31st May 2010 (source:
http://www.amfiindia.com/)
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Subsidiaries
UTI Venture
UTI Venture is leading private equity firm. Focused on growth capital, they propel the
ambitions of passionate Indian entrepreneurs, while unlocking superior returns for our
investors. Our demonstrated track record of successful investments, led by an experienced
management team, positions our funds among top performers in India.
UTI International Ltd
UTI International Ltd (UTI IL) is a 100% subsidiary of UTI Asset Management Company
Ltd. (UTI AMC). UTI AMC is the largest retail Asset Management Company in India
with more than 9 million investor accounts and Assets under Management of close to
US$ 9.5bn (September 30, 2008). UTI International Ltd. is responsible for all international
business activities of UTI AMC. The Assets under Management (AUM) of UTI International
Ltd stands at USD 615 mn as on September 30, 2008.
UTI RSL (Retirement Solutions Limited)
UTI RSL has been set up to carry out the operations as Pension Fund as directed by the Board
of Trustees of the New Pension System Trust, set up under the Indian Trust Act, 1882, and to
undertake wholesale asset management as prescribed by the Government.
Worldwide Mutual Fund Assets by type of fund:
If we see the worldwide Mutual fund Assets by the type of fund for the third quarter in 2008,
then it is seen that the major investments were in equities i.e. 40% of the total investments.
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Source: Investment Company Institute
Worldwide Mutual Fund Assets by Region:
By region, 55 percent of worldwide assets were in the Americas in the third quarter of 2008,
34 percent were in Europe and 11 percent in Africa and Asia/Pacific.
Vision:
“To be the most preferred Mutual Fund.”
Mission:
 The most trusted brand, admired by all stakeholders

 The largest and most efficient money manager with global presence
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 The best in class customer service provider
 The most preferred employer
 The most innovative and best wealth creator
 A socially responsible organisation known for best corporate governance
History:
The formation of Unit Trust of India marked the evolution of the Indian mutual fund
industry in the year 1963. The primary objective at that time was to attract the small
investors and it was made possible through the collective efforts of the Government of India
and the Reserve Bank of India. Unit Trust of India enjoyed complete monopoly when it was
established in the year 1963 by an act of Parliament. UTI was set up by the Reserve Bank of
India and it continued to operate under the regulatory control of the RBI until the two were
de-linked in 1978 and the entire control was transferred in the hands of Industrial
Development Bank of India (IDBI). UTI launched its first scheme in 1964, named as Unit
Scheme 1964 (US-64), which attracted the largest number of investors in any single
investment scheme over the years.
The history of mutual fund industry in India can be better understood divided into following
phases:
Phase 1. Establishment and Growth of Unit Trust of India - 1964-87

Unit Trust of India enjoyed complete monopoly when it was established in the year 1963 by
an act of Parliament. UTI was set up by the Reserve Bank of India and it continued to operate
under the regulatory control of the RBI until the two were de-linked in 1978 and the entire
control was transferred in the hands of Industrial Development Bank of India (IDBI). UTI
launched its first scheme in 1964, named as Unit Scheme 1964 (US-64), which attracted the
largest number of investors in any single investment scheme over the years.
UTI launched more innovative schemes in 1970s and 80s to suit the needs of different
investors. It launched ULIP in 1971, six more schemes between 1981-84, Children's Gift
Growth Fund and India Fund (India's first offshore fund) in 1986, Mastershare (India’s first
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equity diversified scheme) in 1987 and Monthly Income Schemes (offering assured returns)
during 1990s. By the end of 1987, UTI's assets under management grew ten times to Rs 6700
crores.
Phase II. Entry of Public Sector Funds - 1987-1993

The Indian mutual fund industry witnessed a number of public sector players entering the
market in the year 1987. In November 1987, SBI Mutual Fund from the State Bank of India
became the first non-UTI mutual fund in India. SBI Mutual Fund was later followed by
Canbank Mutual Fund, LIC Mutual Fund, Indian Bank Mutual Fund, Bank of India Mutual
Fund, GIC Mutual Fund and PNB Mutual Fund. By 1993, the assets under management of
the industry increased seven times to Rs. 47,004 crores. However, UTI remained to be the
leader with about 80% market share.
Assets Under Mobilisation as % of gross

1992-93 Amount Mobilised
Management Domestic Savings
UTI 11,057 38,247 5.2%
Public Sector 1,964 8,757 0.9%
Total 13,021 47,004 6.1%
Phase III. Emergence of Private Sector Funds - 1993-96

The permission given to private sector funds including foreign fund management companies
(most of them entering through joint ventures with Indian promoters) to enter the mutual fund
industry in 1993, 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. Growth and SEBI Regulation - 1996-2004

The mutual fund industry witnessed robust growth and stricter regulation from the SEBI after
the year 1996. The mobilisation of funds and the number of players operating in the industry
reached new heights as investors started showing more interest in mutual funds.
Investors' interests were safeguarded by SEBI and the Government offered tax benefits to the
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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
mutual fund players on the same level. UTI was re-organised into two parts:
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 mobilisation of funds from investors and assets under
management which is supported by the following data:
GROSS FUND MOBILISATION (RS. CRORES)
PUBLIC PRIVATE
FROM TO UTI TOTAL
SECTOR SECTOR
01-April-98 31-March-99 11,679 1,732 7,966 21,377
01-April-99 31-March-00 13,536 4,039 42,173 59,748
01-April-00 31-March-01 12,413 6,192 74,352 92,957
01-April-01 31-March-02 4,643 13,613 1,46,267 1,64,523
01-April-02 31-Jan-03 5,505 22,923 2,20,551 2,48,979
01-Feb.-03 31-March-03 * 7,259* 58,435 65,694
01-April-03 31-March-04 - 68,558 5,21,632 5,90,190
01-April-04 31-March-05 - 1,03,246 7,36,416 8,39,662
01-April-05 31-March-06 - 1,83,446 9,14,712 10,98,158
ASSETS UNDER MANAGEMENT (RS. CRORES)
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PUBLIC PRIVATE TOTA
AS ON UTI
SECTOR SECTOR L
53,32
31-March-99 8,292 6,860 68,472
0
Phase V. Growth and Consolidation - 2004 Onwards

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.
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I) GLOBAL SCENARIO
Some basic facts:
In US, every third household is a mutual fund investor.
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In US, the MF Industry size is about 67% of the US GDP whereas the Indian MF Industry is
just 6% of our GDP.
In US, MF assets are 1.5 times the bank deposit.
In India the bank deposits are about 10.50 times the MF assets.
In India for the past 3 years it has been seen that nearly 2,500 crore is being transferred from
bank deposits to Mutual funds on a yearly basis.
75% of the core customer bases of mutual funds in the top 50-broking firms in the U.S. are
expected to trade on-line by 2004.
On- line trading is a great idea to reduce management expenses from the current 2 % of total
assets to about 0.75 % of the total assets and as we start using advanced technology in this
industry this cost will further cut down the administration cost.
Internationally, on-line investing continues its meteoric rise. Many have debated about the
success of e- commerce and its breakthroughs, but it is true that this aspect of technology
could and will change the way financial sectors function. However, mutual funds cannot be
left far behind. They have realized the potential of the Internet and are equipping themselves
to perform better.
In fact in advanced countries like the U.S.A, mutual funds buy- sell transactions have already
begun on the net, while in India the Net is used as a source of Information and also net is
used for transaction purpose is on the initial stage but is catching up quickly with all dealing
in this industry as it helps in reducing administrative cost.
Such changes could facilitate easy access, lower intermediation costs and better services for
all. A research agency that specializes in internet technology estimates that over the next four
years Mutual Fund Assets traded online will grow ten folds from $ 128 billion to $ 1,227
billion; whereas equity assets traded on-line will increase during the period from $ 246 billion
to $ 1,561 billion. This will increase the share of mutual funds from 34% to 40% during the
period.
Such increases in volumes are expected to bring about large changes in the way Mutual
Funds conduct their business.
Here are some of the basic changes that have taken place since the advent of the Net.
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Lower Costs: Distribution of funds will fall in the online trading regime by 2003. Mutual
funds could bring down their administrative costs to 0.75% if trading is done online. As per
SEBI regulations, bond funds can charge a maximum of 2.25% and equity funds can charge
2.5% as administrative fees. Therefore if the administrative costs are low, the benefits are
passed down and hence Mutual Funds are able to attract more investors and increase their
asset base.
Better advice: Mutual funds could provide better advice to their investors through the Net
rather than through the traditional investment routes where there is an additional channel to
deal with the Brokers. Direct dealing with the fund could help the investor with their financial
planning.
In India, brokers could get more Net savvy than investors and could help the investors with
the knowledge through get from the Net.
New investors would prefer online: Mutual funds can target investors who are young
individuals and who are Net savvy, since servicing them would be easier on the Net.
India has around 1.6 million net users who are prime target for these funds and this could just
be the beginning. The Internet users are going to increase dramatically and mutual funds are
going to be the best beneficiary. With smaller administrative costs more funds would be
mobilized .A fund manager must be ready to tackle the volatility and will have to maintain
sufficient amount of investments which are high liquidity and low yielding investments to
honour redemption.
Net based advertisements: There will be more sites involved in ads and promotion of mutual
funds. In the U.S. sites like AOL offer detailed research and financial details about the
functioning of different funds and their performance statistics a is witnessing a genesis in this
area.
Future Scenario:
The asset base will continue to grow at an annual rate of about 30 to 35 % over the next few
years as investor’s shift their assets from banks and other traditional avenues. Some of the
older public and private sector players will either close shop or be taken over.
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Out of ten public sector players five will sell out, close down or merge with stronger players
in three to four years. In the private sector this trend has already started with two mergers and
one takeover. Here too some of them will down their shutters in the near future to come.
But this does not mean there is no room for other players. The market will witness a flurry of
new players entering the arena. There will be a large number of offers from various asset
management companies in the time to come. Some big names like Fidelity, Principal, Old
Mutual etc. are looking at Indian market seriously. One important reason for it is that most
major players already have presence here and hence these big names would hardly like to get
left behind.
In the U.S. most mutual funds concentrate only on financial funds like equity and debt. Some
like real estate funds and commodity funds also take an exposure to physical assets. The latter
type of funds are preferred by Corporate’s who want to hedge their exposure to the
commodities they deal with.
For instance, a cable manufacturer who needs 100 tons of Copper in the month of January
could buy an equivalent amount of copper by investing in a copper fund. For Example,
Permanent Portfolio Fund, a conservative U.S. based fund invests a fixed percentage of it’s
corpus in Gold, Silver, Swiss francs, specific stocks on various bourses around the world,
short –term and long-term U.S. treasuries etc.
In U.S.A. apart from bullion funds there are copper funds, precious metal funds and real
estate funds (investing in real estate and other related assets as well.).In India, the Canada
based Dundee mutual fund is planning to launch gold and a real estate fund before the year-
end.
In developed countries like the U.S.A there are funds to satisfy everybody’s requirement, but
in India only the tip of the iceberg has been explored. In the near future India too will
concentrate on financial as well as physical funds.
The mutual fund industry is awaiting the introduction of DERIVATIVES in the country as
this would enable it to hedge its risk and this in turn would be reflected in its Net Asset Value
(NAV).
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SEBI is working out the norms for enabling the existing mutual fund schemes to trade in
Derivatives. Importantly, many market players have called on the Regulator to initiate the
process immediately, so that the mutual funds can implement the changes that are required to
trade in Derivatives.
Assets Under Management:
UTIAMC presently manages a corpus of over Rs.78, 617 Crores* as on 31st May
2010. UTI Mutual Fund has a track record of managing a variety of schemes catering to the
needs of every class of citizens. It has a nationwide network consisting 143 UTI Financial
Centres (UFCs) and UTI International offices in London, Dubai and Bahrain.
(Source: http://www.amfiindia.com/)
Mutual Fund- An Introduction
Securities Exchange Board of India (SEBI) is the regulatory body for all the mutual funds.
All the mutual funds must get registered with SEBI. A mutual fund is a professionally
managed type of collective investment scheme that pools money from many investors and
invests it in stocks, bonds, short-term money market instruments, and/or other securities. The
mutual fund will have a fund manager that trades the pooled money on a regular basis. The
net proceeds or losses are then typically distributed to the investors annually.
Since 1940, there have been three basic types of investment companies in the United
States: open-end funds, also known in the U.S. as mutual funds; unit investment
trusts (UITs); and closed-end funds. Similar funds also operate in Canada. However, in the
rest of the world, mutual fund is used as a generic term for various types of collective
investment vehicles, such as unit trusts, open-ended investment companies (OEICs), unitized
insurance funds, and undertakings for collective investments in transferable securities
(UCITS).
A mutual fund may be either an open-end or a closed-end fund. An open-end mutual

fund does not have a set number of shares; it may be considered as a fluid capital stock. The
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number of shares changes as investors buys or sell their shares. Investors are able to buy and
sell their shares of the company at any time for a market price. However the open-end market
price is influenced greatly by the fund managers. On the other hand, closed-end mutual fund
has a fixed number of shares and the value of the shares fluctuates with the market. But with
close-end funds, the fund manager has less influence because the price of the underlining
owned securities has greater influence.
Mutual Fund Global Overview
Mutual fund assets worldwide decreased 12.1 percent to $21.66 trillion at the end of the third
quarter of 2008. Net cash flow to all funds was negative in the third quarter with $218 billion
in outflows, the first worldwide outflow recorded since the third quarter of 2002. The decline
in assets reported in U.S. dollars was exacerbated by strengthening of the dollar. Long-term funds
had net outflows of $246 billion in the third quarter, after registering net inflows of $73
billion in the second quarter. All categories of long-term funds experienced outflows. Year-
to-date, equity funds have had $254 billion in outflows, bond funds have had $39 billion in
outflows, and balanced/mixed funds have had $24 billion in outflows. Money market funds
experienced net inflows of $28 billion in the third quarter, compared with outflows of $70
billion in the second quarter of 2008. Year-to-date money market funds have had $444 billion
of net inflows. MFs records Rs. 83081 crore net inflow in FY 2009-10.
Investment Philosophy
UTI Mutual Fund’s investment philosophy is to deliver consistent and stable returns in the
medium to long term with a fairly lower volatility of fund returns compared to the broad
market. It believes in having a balanced and well-diversified portfolio for all the funds and a
rigorous in-house research based approach to all its investments. It is committed to adopt and
maintain good fund management practices and a process based investment management.
UTI Mutual Fund follows an investment approach of giving as equal an importance to asset
allocation and sartorial allocation, as is given to security selection while managing any fund.
It combines top-down and bottom-up approaches to enable the portfolios/funds to adapt to
different market conditions so as to prevent missing an investment opportunity.
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Corporate Profile:
UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs
of every class of citizens. It has a nationwide network consisting 114 UTI Financial Centers
(UFCs) and UTI International offices in London, Dubai and Bahrain. With a view to reach to
common investors at district level, 1 satellite office has also been opened.
UTIAMC has a well-qualified, professional fund management team, which has been fully
empowered to manage funds with greater efficiency and accountability in the sole interest of
the unit holders. The fund managers are ably supported by a strong in-house securities
research department. To ensure investors’ interests, a risk management department is also in
operation.
Benefits of investing in Mutual Funds:
There are several benefits from investing in a Mutual Fund:
 Small investments: Mutual funds help you to reap the benefit of returns by a
portfolio spread across a wide spectrum of companies with small investments.
 Professional Fund Management: Professionals having considerable expertise,

experience and resources manage the pool of money collected by a mutual fund. They
thoroughly analyse the markets and economy to pick good investment opportunities.
 Spreading Risk: An investor with limited funds might be able to invest in only one
or two stocks/bonds, thus increasing his or her risk. However, a mutual fund will
spread its risk by investing a number of sound stocks or bonds. A fund normally
invests in companies across a wide range of industries, so the risk is diversified.
 Transparency: Mutual Funds regularly provide investors with information on the

value of their investments. Mutual Funds also provide complete portfolio disclosure
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of the investments made by various schemes and also the proportion invested in each
asset type.
 Choice: The large amount of Mutual Funds offer the investor a wide variety to choose
from. An investor can pick up a scheme depending upon his risk/ return profile.
 Regulations: All the mutual funds are registered with SEBI and they function within
the provisions of strict regulation designed to protect the interests of the investor.
 Flexibility: Through features such as Systematic Investment Plans (SIP), Systematic

Withdrawal Plans (SWP) and dividend reinvestment plans, you can systematically
invest or withdraw funds according to your needs and convenience.
 Return Potential: Over a medium to long term, Mutual Funds have the potential to
provide a higher return as they invest in a diversified basket of selected securities.
 Diversification: Mutual Funds invest in a number of companies across a broad cross

section of industries and sectors. This diversification reduces the risk because seldom
do all stocks decline at the same time and in the same proportion. You achieve this
diversification through a Mutual Fund with far less money than you can do on your
own.
Limitation of Mutual Fund:
 Entry and exit costs: Mutual Funds are a victim of their own success. When a large
body like a fund invests in shares, the concentrated buying or selling often results in
adverse price movements i.e. at the time of buying, the fund ends up paying a higher
price and while selling it realizes a lower price. For obvious reasons, this problem is
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even more severe for funds investing in small capitalization stocks. However, given
the large size of the debt market, excluding UTI, most debt funds do not face this
problem.
 Waiting time before investment: It takes time for a Mutual Fund to invest money.
Since it is difficult to invest all funds in one day, there is dome money waiting to be
invested. Further, there may be a time lag before investment opportunities are
identified. This ensures that the fund under performs the index. For open-ended
funds, there is the added problem of perpetually keeping some money in liquid assets
to meet redemption. The problem of impracticability of quick investments is likely to
be reduced to some extent with the introduction of index futures.
 Fund management costs: The costs of the fund management process are deducted
from the fund. This includes marketing and initial costs deducted at the time of entry
itself, called “load”. Then there is the annual asset management fee and expenses,
together called the expense ratio. Usually, the former is not counted while measuring
performance, while the later is. A standard 2% expense ratio means that, everything
else being equal, the Fund manager under performs the benchmark index by an equal
amount.
 Cost of churning: The portfolio of a fund does not remain constant. The extent to
which the portfolio changes is a function of the style of the individual fund manager.
It is also dependent on the volatility of the fund size i.e. whether the fund constantly
receives fresh subscriptions and redemption. Such portfolio changes have associated
costs of brokerage, custody fees, and registration fees etc. that lowers the portfolio
return commensurately.
 Change of index composition: The indices keep changing over the world to reflect
changing market conditions. There is an inherent survivorship bias in this process,
with the bad stocks weeded out and replaced by emerging blue chips. This is a severe
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problem in India with the Sensex having been changes twice in the last five years,
with each change being quite substantial. Another reasons for change index
composition is Mergers & Acquisitions. The weight age of the shares of a particular
company in the index changes if it acquires a large company not a part of the index.
Rights of Unit holders:
As a unitholder in a Mutual Fund scheme coming under the SEBI (Mutual Funds)
Regulations, you are entitled to:
 Receive unit certificates or statements of accounts confirming your title within 30

days from the date of closure of the subscription under open-ended schemes or within
6 weeks from the date your request for a unit certificate is received by the Mutual
Fund.
 Receive information about the investment policies, investment objectives, financial
position and general affairs of the scheme.
 Receive dividend within 30 days of their declaration and receive the redemption or
repurchase proceeds within 10 working days from the date of redemption or
repurchase.
 Vote in accordance with the Regulations to:
 Change the Asset Management Company.
 Wind up the schemes.
 Receive communication from the Trustees about change in the fundamental attributes
of any scheme or any other changes which would modify the scheme and affect the
interest of the unitholders and to have option to exit at prevailing Net Asset Value
without any exit load in such cases.
 Inspect the documents of the Mutual Funds specified in the scheme’s offer document.
In addition to your rights, you can expect the following from Mutual Funds:
 To publish their NAV, in accordance with the regulations: daily, in case of open-
ended schemes and once a week, in case of close-ended schemes.
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 To disclose your schemes’ entire portfolio twice a year, unaudited financial results
half yearly and audited annual accounts once a year. In addition many mutual funds
send out newsletters periodically.
 To adhere to a Code of Ethics which require that investment decisions are taken in the
best interest of the unitholders.
Organizational Structure of Mutual Fund Industry:
Unit
Holders
Sponsors
Trustees AMC
Mutual Fund Transfer Agent
Custodian
SEBI
Mutual fund is set up in the form of a trust, which has sponsor, trustees, Asset Management
Company (AMC) and a custodian.
The trust is established by a sponsor or more than one sponsor who is like a promoter of a
company. A mutual fund in India is constituted in the form of a public Trust created under the
Indian Trusts Act, 1882. The sponsor forms the Trust and registers it with SEBI. The fund
sponsor acts as the settler of the Trust, contributing to its initial capital and appoints a trustee
to hold the assets of the Trust for the benefit of the unit – holders, who are the beneficiaries of
the Trust. The fund then invites investors to 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. Thus, a mutual fund is just a ‘pass through’ vehicle. Most of
the funds in India are managed by the Board of Trustees, which is an independent body and
acts as protector of the unit – holders interests. At least, 50 per cent of the trustees shall be
independent trustees (who are not associated with an associate, subsidiary, or sponsor in any
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manner). The trustees shall be accountable for and be the custodian of funds/property of
respective scheme.
The trustees of the mutual fund hold its property for the benefit of the unit-holders. The
AMC, approved by SEBI, manages the funds by making investments in various types of
securities.
The custodian, who is registered with SEBI, holds the securities of various schemes of the
fund in its custody.
The trustees are vested with the general power of superintendence and direction over AMC.
They monitor the performance and compliance of SEBI Regulations by the mutual fund.
The sponsor is required, under the provisions of the Mutual Fund Regulations, to have a
sound track record, a reputation of fairness and integrity in all his business transactions.
Additionally, the sponsor should contribute at least 40% to the net worth of the AMC.
However, if any person holds 40% or more of the net worth of an AMC shall be deemed to be
a sponsor and will be required to fulfil the eligibility criteria specified in the Mutual Fund
Regulations. The sponsor or any of its directors or the principal officer employed by the
mutual fund should not be guilty of fraud, not be convicted of an offence involving moral
turpitude or should have not been found guilty of any economic offence.
Awards
UTI MF CNBC Award 2009.

UTI Mutual Fund sweeps ICRA mutual fund Award 2009.
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UTI MF wins the Best Debt Fund House Award.
Golden Peacock Innovative Product/Service Award-2008.
Loyalty Awards – 2009.
Lipper Fund Awards09-UTI Mahila Unit-5 yrs.
Lipper Fund Awards09-UTI Mahila Unit-3 yrs.
Reader’s Digest Trusted Brand 2008.
Lipper Fund Awards - Gulf 2008.
Top Performing Infrastructure Fund - Income.
Brand loyalty Awards 2008.
Four ICRA 7 Star Gold Award.
Four ICRA 5 Star Award.
ICRA Mutual Fund Award 2007.
Lipper Fund Awards 2007.
CRISIL-CNBC-TV18-Mutual Fund of the year Award 2007.
ICRA Mutual Fund Award 2006.
Lipper Fund Awards.
CNBC-TV18-BNP Par-ibas Mutual Fund of the year Award 2006.
CNBC-TV18-BNP Par-ibas Mutual Fund of the year Award 2004
ICRA online Mutual Fund Award: UTI NIFTY INDEX FUND won the award for the year
2004.
CNBC India Mutual Fund of the Year Award 2003.
UTI Nifty Index Fund wins Gold at ICRA Online 2005.
UTI Dynamic Equity Fund wins Silver at ICRA Online 2005.
UTI Growth Value Fund has been ranked by CRISIL 2004.
What are the different investment plans that Mutual Funds offer?
The term ’investment plans’ generally refers to the services that the funds provide to
investors offering different ways to invest or reinvest. The different investment plans are an
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important consideration in the investment decision, because they determine the flexibility
available to the investor.
Some of the investment plans offered by mutual funds in India are:
Growth Plan and Dividend Plan

A growth plan is a plan under a scheme wherein the returns from investments are reinvested
and very few income distributions, if any, are made. The investor thus only realizes capital
appreciation on the investment. Under the dividend plan, income is distributed from time to
time. This plan is ideal to those investors requiring regular income.
Dividend Reinvestment Plan

Dividend plans of schemes carry an additional option for reinvestment of income distribution.
This is referred to as the dividend reinvestment plan. Under this plan, dividends declared by a
fund are reinvested in the scheme on behalf of the investor, thus increasing the number of
units held by the investors.
Types of Mutual Fund:
The objectives of Mutual Funds are to provide continues liquidity and higher yields with high
degree of safety to investor. Based on these objectives, different types of Mutual Fund
schemes have evolved.
Open Ended Schemes:
Open-ended schemes do not have a fixed maturity period. Investors can buy or sell units at
NAV-related prices from and to the mutual fund on any business day. These schemes have
unlimited capitalization, open-ended schemes do not have a fixed maturity, there is no cap on
the amount investors can buy from the fund and the unit capital can keep growing. These
funds are not generally listed on any exchange.
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Open-ended schemes are preferred for their liquidity. Such funds can issue and redeem units
any time during the life of a scheme. Hence, unit capital of open-ended funds can fluctuate on
a daily basis.
The advantages of open-ended funds over close-ended are as follows:
Any time exit option, the issuing company directly takes the responsibility of providing an
entry and an exit. This provides ready liquidity to the investors and avoids reliance on
transfer deeds, signature verifications and bad deliveries. Any time entry option, an open-
ended fund allows one to enter the fund at any time and even to invest at regular intervals.
Close Ended Schemes:
Close-ended schemes have fixed maturity periods. Investors can buy into these funds during
the period when these funds are open in the initial issue. After that such scheme cannot issue
new units except in case of bonus or rights issue. However, after the initial issue, investors
can buy or sell units of the scheme on the stock exchanges where they are listed. The market
price of the units could vary from the NAV of the scheme due to demand and supply factors,
investors’ expectations and other market factors.
Interval Scheme:
Interval Scheme combines the features of open-ended and close-ended schemes. They are
open for sale or redemption during predetermined intervals at NAV-related prices.
Portfolio Classification:
Income/ Debt Funds
These funds are low risk-low return funds, where in the investments are made in income
bearing instruments such as bonds, debentures, government securities, commercial papers etc.
The share prices of these funds tend to be more stable in value and are best suitable for
regular income investment goals, provided minimum investment period is more than one
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25
year. The leading examples are monthly income funds of UTI, Prudential ICICI Income
Plan, JM Income, Alliance Liquid Fund etc.
Growth/Equity Funds
These funds are high risk-high return funds, wherein major chunk of investment goes in
equity shares of companies. The NAV of such funds keep fluctuating, but the potential to
earn in such funds is higher provided they are invested with long-term (more than 5 years)
financial goals. The leading examples of such funds are, Kothari Pioneer Prima Fund,
Prudential ICICI Equity Fund, Birla Sun Life Fund, etc.
Balanced Funds
These funds invest in both, equity shares and income bearing instruments. The idea is to
reduce volatility of fund, while providing some upside for capital appreciation. In all, it is a
combination of income and growth funds more return – more risk than income funds and less
return – less risk than growth funds. They are best suited for people looking for a
combination for capital appreciation and regular income and best time – span for such
investments is more than 3 years. The examples are PRUICICI Balanced Fund, IDBI-
PRINCIPAL Balanced Fund, and IDBI-PRINCIPAL Child Benefit Fund etc.
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Money Market Mutual Funds
These funds invest in highly liquid instruments such as certificate of deposits and short-term
bonds. They have emerged as an alternative for savings and short-term fixed deposit
accounts. They are best suited for capital preservation investment objectives, where time-
span is least.
Geographical Classification
Domestic Funds
Funds which mobilize resources from a particular geographical locality like a country or
region are domestic funds. The market is limited and confined to the boundaries of a nation in
which the fund operates. They can invest only in the securities which are issued and traded in
the domestic financial markets.
OTHER CLASSIFICATION
Sector Funds
Sector funds primarily invest in companies of a particular sector/ industry such as

information technology, pharmaceuticals, FMCGs etc. These types of funds are subject to
more risk as the performance of funds depends on the performance of the industry as a whole
and also because the diversification of risk is reduced. Also with the new rule of government
not allowing investing more than 10% in a particular company, is a big problem as the
number of companies are not very large and at the same time all of them are not very
successful. It is best suited to people willing to take high risk.
Tax Saving Funds (ELSS)
These funds offer tax rebate to the investor along wit capital growth and steady returns. An
Equity United Savings Scheme is available wherein investments are made primarily in
stocks. The investment can be made any time, but it gets lock-in for a period of 3 years and
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in return tax rebate @ 20% is obtained if investments exceed Rs.1, 00,000. Another such
scheme is pension scheme, wherein tax rebate @ 20% can be obtained for investment up to
Rs.60, 000.
Special Funds
Special purpose funds are those funds that target a specific customer segments, such as
children, women, retired people etc. Making their fund oriented towards the need of the
group they are targeting.
Gilt Funds
These funds are sort of government funds wherein the investments are made in debt
instruments of the government, which carry no risk of non-payment of interest as the RBI
manages the payment of interest and principal on the instruments. These funds are best
suited to the regular income and long-term investment objectives. The time-span matters a
lot as there are chances of price volatility, which may lead to possibility of loss of principal
invested, if invested for short-term. Examples are PRUICICI Gilt Fund, IDBI-PRINCIPAL
Government Securities Fund etc.
Index Funds
Index funds invest only in stocks of a particular index such as BSE, S&P CNX 500 etc. The
principle is to duplicate performance of these widely followed indexes while keeping trading
and other costs to a minimum. The returns in case of such funds depend on the index’s
performance. It is best suited to the investors who are satisfied with the returns of an index.
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Products of UTI AMC
Equity Fund Category
 Diversified Funds
UTI Master Share: An equity fund aiming to provide benefit of capital appreciation and
income distribution through investing in equity.
UTI Master Plus Unit Scheme: Capital appreciation through investments in equities and
equity related instruments, convertible debentures, derivate in India and also in overseas
markets.
UTI Equity Fund: It is open ended equity scheme with an objective of investing at least
80% of its funds in equity and equity related instrument with medium to high risk profile and
upto 20% in debt and money market instruments with low to medium risk profile.
UTI Contra Fund: To provide long term capital appreciation/ dividend distribution through
investments in listed equities & equity related instruments. The fund offers an impact of non-
rational investors that are currently undervalued because of emotional & perceptional patterns
present in the stock market.
UTI Wealth Builder: The objective of the scheme is to achieve long term investing
predominantly in a diversified portfolio of equity related instruments.
UTI Top 100: The fund aims to provide long term capital appreciation/ dividend
predominantly in equity and equity related instruments of top 100 by market capitalisation.
 Speciality/ Theme Based Fund
UTI Infrastructure Fund: An open-ended equity fund with the objective to provide capital
appreciation through investing in the stocks of the companies engaged in the sectors like
Metals, Building materials, oil and gas, power, chemicals, engineering etc. The fund will
invest in the stocks of the companies which from part of infrastructure industries.
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UTI Dividend Yield Fund: An open-ended equity scheme. It aims to provide medium to
long term capital gains and/or dividend distribution by investing predominantly in equity and
equity related instruments, which offer high dividend yield.
UTI Services Industries Fund: An open-ended fund which invests in the equities of the
services sector companies of the country. One of the growth sector fund aiming to provide
growth of capital over a period of time as well as to make income distribution by investing
the funds in stocks of companies engaged in service sector such as banking, finance,
insurances, education, training, telecom, travel, entertainment etc.
UTI Master Value Fund: An open ended equity fund investing in stocks which are currently
undervalued to their future earning potential and carry medium risk profile to provide Capital
appreciation.
UTI Mid Cap Fund: An open ended fund with the objective to provide ‘Capital
Appreciation’ by investing primarily in mid cap stocks.
UTI Leadership Equity Fund: The scheme seeks to generate capital appreciation and/ or
income distribution by investing the funds in stocks that are ‘Leader” in their respective
industries/ sectors/ sub sectors.
UTI MNC Fund: The investments of funds under the scheme will be predominantly in
stocks of multinational corporations and other Liquid stocks.
UTI Opportunities Fund: The scheme seeks to generate capital appreciation and/ or income
distribution by investing the funds of the scheme in the equity shares and equity related
instruments. The focus of the scheme is to capitalise on opportunities arising in the market by
responding to the dynamically changing Indian economy by moving its investments amongst
different sectors as prevailing trends change.
UTI Wealth Builder Fund Ser- II: To achieve long term capital appreciation by investing
predominantly in a diversified portfolio of equity and equity related instruments along with
investments in GOLD ETF’s and Debt and Money Market Instruments.
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 Sector Funds: These funds invest primarily in equity shares of companies in a
particular business sector or industry. These funds are targeted at investors who
are bullish or fancy the prospects of a particular sector.
UTI Banking Sector Fund: open ended fund with the objective to provide ‘Capital
Appreciation through investment in stocks of companies/ institutions engaged in the banking
and financial services activities.
UTI Energy Fund: Investment will be made in stocks of these companies engaged in the
following areas: .(a) Petro sector, (b) Power Generation Companies, (c) Energy Storage
Companies, (d) Companies which makes parts for energy generation, (e) Consulting and
Finance Companies.
UTI Pharma and Health Care Fund: An open-ended fund which exclusively invest in the
equities of the Pharma and Healthcare sector companies.
UTI Transportation and Logistics Fund: An open-ended Equity fund with the objective to
provide Capital appreciation through investment in the stocks of the companies engaged in
the Transportation and Logistics sector.
 Tax Planning Funds
UTI Equity Tax Saving Plan: An open ended fund investing a minimum of 80% in equity
and related instruments. It aims at enabling members to avail tax rebate under section 80C of
the IT act and provide them with the benefit of growth.
UTI Spread Fund: The investment objective of the scheme is to provide capital appreciation
and dividend distribution through arbitrage opportunities arising out of price differences
between the cash and derivative market by investing predominantly in equity and related
securities, derivatives and the balance portion in debt securities.
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2. Index Fund Category: These funds invest in the same pattern as popular market
indices like S&P CNX Nifty or CNX Midcap 200. The money collected from the
investors is invested only in the stocks, which represent the index.
UTI Master Index Fund: The principle investment objective of the scheme is to invest in
securities of companies comprising the SENSEX and endeavour to achieve return equivalent
to SENSEX by passive investment.
UTI Nifty Index Fund: The principle investment objective of the scheme is to invest in
stock of companies comprising the Nifty and endeavour to achieve return equivalent to Nifty
by passive investment.
UTI Sunder: Investment objective of the fund is to endeavour to provide returns that, before
expenses, closely track the performance and yield of basket of securities underlying S&P
CNX Nifty Index.
3. Asset Fund Category
UTI Variable Investment Scheme: This is an open-ended scheme aiming to make dividend
distribution periodically. The scheme will, as part of the investment objective take a
contrarian outlook on the equities.
4. Balanced Fund Category: These funds invest both in equity shares and fixed-
income-bearing instruments (debt) in some proportion. They provide a steady return
and reduce the volatility of the fund while providing some upside for capital
appreciation. They are ideal for medium to long-term investors who are willing to
take moderate risks.
UTI Balanced Fund: The scheme aims to invest in a portfolio of equity/equity related
securities and fixed income securities with a view to generating regular income together with
capital appreciation.
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UTI Unit linked Insurance Plan: Investment objectives of the scheme are primarily to
provide return through growth inters NAV or through dividend distribution and reinvestment
thereof.
UTI CRTS: Investment objectives of the scheme are the primarily provide regular income to
unit holders of the scheme.
UTI Children Career Balanced Plan: Funds collected under the plan will be invested in
equities, convertible and nonconvertible debentures/ bonds of companies/ corporates etc. and
others capital and money market instrument subject to the condition that (1) non less than
60% of the funds will be invested in debt instruments of law to medium profile having a
rating of A+ and above or equivalent at the time of investment and (2) not more than 40% of
the funds in equities and related instruments.
UTI Retirement Benefit Pension Plan: Investment objective and policies of the scheme are
primarily to provide pension in the form of periodical income / cash flow to the unit holders
to the extent of redemption value of their holding after they complete 58 years of age.
UTI Mahila Unit Scheme: Investment objectives of the scheme is to invest in portfolio of
equity/ equity related securities and debt and money market instrument with a view to
generating reasonable income with moderate capital appreciation.
UTI CCP Advantage Fund: Equity and related instruments minimum- 70% to 100%, debt
and money market instruments including securitized debt* minimum- 0% to maximum 30%*
investment in securitized debt will not normally exceed 20% of the net assets of the scheme.
UTI Monthly Income Scheme: An open-ended debt oriented scheme with no assured
returns. The scheme aims at distributing income, if any, periodically.
UTI MIS Advantage Plan: The investment objective of the scheme is to generate regular
income through investment in fixed income securities and capital appreciation/ dividend
income through investment of a portion of a net asset of the scheme in equity and related
instruments so as to endeavour to make periodic income distribution to unit holders.
5. Income Fund Category: These funds invest predominantly in high-rated fixed-

income-bearing instruments like bonds, debentures, government securities,
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commercial paper and other money market instruments. They are best suited for the
medium to long-term investors who are averse to risk and seek capital preservation.
They provide a regular income to the investor.
UTI Bond Fund: The scheme will retain the flexibility to invest in the entire range of debt
and money market instruments. The flexibility is being retained to adjust the portfolio in
response to a change in the risk to return equation for asset classes under investment, with a
view to maintain risks within manageable risks limits.
UTI Treasury Advantage Fund: The scheme will endeavour to generate an attractive return
for its investors consistent with capital preservation and liquidity by investing in a portfolio
of quality debt securities, money market instruments and structured obligations.
UTI G-Sec Investment Plan- STP: The investment objective of the scheme is to generate
credit risk- free return by way of income or growth by investing in central Government
securities, treasury bills, call money and repos.
UTI Gilt Advantage Fund: To generate credit risk-free return through investment in
sovereign securities issued by the central Government and/or a State Government and/or any
security unconditionally guaranteed by the central Government and/or a State government for
repayment of principle and interest.
UTI Short Term Income Fund: To Generate Steady and Reasonable income, with low risk
and high level of liquidity from a portfolio of money market securities and high quality debt.
UTI Floating Rate Fund: The investment objective of the scheme is to generate regular
income though investment in a portfolio comprising substantially a floating rate debt/ money
market instruments, fixed rate debt/ money market instrument swapped for floating rate
returns.
UTI G-Sec STP: The investment objective of the scheme is to generate credit risk-free return
by way of income or growth by investing in Central Government securities, treasury bills,
call money and repos.
6. Liquid Fund Category: These funds invest in highly liquid money market
instruments. The period of investment could be as short as a day. They provide easy
liquidity. They have emerged as an alternative for savings and short-term fixed
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deposit accounts with comparatively higher returns. These funds are ideal for
corporate, institutional investors and business houses that invest their funds for very
short periods.
UTI Money Market Fund: To provide highest possible current income consistent with
preservation of capital and providing liquidity from investing in a diversified portfolio of
short term money market securities.
UTI Liquid Fund Cash Plan: The investment objective of the scheme is to generate steady
and reasonable income, with low risk and high level of liquidity from a portfolio of money
market securities and high quality debt.
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SIP (Systematic Investment Plan):
SIP is an investment program that allows you to contribute a fixed amount (as low as
Rs.1000) in mutual funds at regular intervals.
Build your future: To meet largest expenses of your life like marriages, education or a
house you need to start investing early. Save a small amount every month/quarter and look
forward to a bright future.
Relax and accumulate wealth: With SIP you don’t require investing a huge sum of money
and start with an amount as little as Rs. 500. You can accumulate wealth over long-term.
Reduce risk: For efficient participation in this highly volatile market, SIP helps you
average out your cost by generating superior returns in the long run. It reduces risk associated
with lump sum investments.
Enjoy the ease: Set yourself free from cumbersome paperwork. Just identify the amount
and scheme you wish to invest in and then choose from options like Auto Debit/ECS. The
amount will automatically get debited on a date of your choice. You can also give
monthly/quarterly post-dated cheques for the amount you wish to invest.
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SIP Returns of two months:
 SIP return for April:
1 yr. 3 yr 5 yr
Scheme Name Investment Amount 12000 36000 60000
Diversified
Investment Value 14588 51520
UTI Opportunities Fund
Yield (%) 42.39% 24.73%
Investment Value 16638 54361 97546

UTI Master Value Fund
Yield (%) 78.85% 28.70% 19.52%
UTI Midcap Fund
Yield (%) 76.96% 25.46% 15.92%
UTI Dividend Yield Investment Value 15328 53049
Fund Yield (%) 55.30% 26.88%
UTI Equity Fund
Yield (%) 45.52% 21.21% 17.88%
Service Industries Fund
Yield (%) 52.47% 15.56% 12.68%
UTI Leadership Fund
Yield (%) 34.75% 12.37%
UTI Mastershare
Yield (%) 40.36% 17.20% 16.45%
UTI Infrastructure Fund
Yield (%) 31.54% 11.37% 15.51%
Sectoral Fund
UTI Banking Sector Investment Value 15596 53929 108710
Fund Yield (%) 60.03% 28.10% 24.00%
UTI Transportation & Investment Value 16556 58119 93374
Logistics Fund Yield (%) 77.35% 33.73% 17.73%
UTI MNC Fund
Yield (%) 57.20% 24.82% 17.75%
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SIP returns are worked out assuming investment of Rs. 1000/- every month at NAV per unit
of the scheme as on the first working day of the respective time periods. The loads have not
been taken into account.
 SIP returns for May:
1 yr. 3 yr 5 yr
Investment
Scheme Name 12000 36000 60000
Amount
Diversified
UTI Opportunities Fund
Yield (%) 31.72% 24.66%

UTI Master Value Fund
Yield (%) 71.75% 31.90% 21.25%
UTI Midcap Fund
Yield (%) 65.96% 27.93% 17.14%
UTI Dividend Yield Fund
Yield (%) 45.18% 27.07%
UTI Equity Fund
Yield (%) 33.30% 20.81% 17.51%
Service Industries Fund
Yield (%) 42.15% 17.12% 13.24%
UTI Leadership Fund
Yield (%) 23.25% 11.94%
UTI Mastershare
Yield (%) 28.65% 16.45% 15.87%
UTI Infrastructure Fund
Yield (%) 19.74% 10.42% 14.50%
Sectoral Fund
UTI Banking Sector Fund
Yield (%) 53.88% 30.69% 25.49%
UTI Transportation & Investment Value 15834 59642 95606
Logistics Fund Yield (%) 64.84% 35.81% 18.73%
UTI MNC Fund Investment Value 148981 52325 94456
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Yield (%) 49.63% 25.94% 18.23%
SIP returns are worked out assuming investment of Rs. 1000/- every month at NAV per unit
of the scheme as on the first working day of the respective time periods. The loads have not
been taken into account.
(Reference: From the Factsheet by UTI)
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Key terms:
NAV: NAV or Net Asset Value of the fund is the cumulative market value of the assets of
the fund net of its liabilities. NAV per unit is simply the net value of assets divided by the
number of units outstanding. Buying and selling into funds is done on the basis of NAV-
related prices.
The NAV of a mutual fund are required to be published in newspapers. The NAV of an open
end scheme should be disclosed on a daily basis and the NAV of a close end scheme should
be disclosed at least on a weekly basis.
Exit/Entry load: Is a charge collected by a scheme when it sells the units is exit load. Is a
charge collected by a scheme when it buys back the units from the unit holders is entry load
Open/Close Ended: Whenever investor invest in any open ended scheme then he can make
entry and exit at any time but in close ended scheme he can exit at the time of maturity.
Sales Price: Is the price you pay when you invest in a scheme, also called Offer Price. It may
include a sales load.
Re-purchase Price: Is the price at which units under open-ended schemes are repurchased
by the Mutual Fund. Such prices are NAV related.
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Area of Study:
There are so many schemes were introduced by UTI AMC, due to time constraints we
have only focused on following schemes.
Equity Funds Category

Features Master Share Top 100 Fund Dividend Yield Master Value
Fund Fund
Objective An equity fund The fund aims to An open-ended An open ended
aiming to provide long term equity scheme. It equity fund
provide benefit capital aims to provide investing in
of capital appreciation/ medium to long stocks which are
appreciation and dividend term capital gains currently
income predominantly in and/or dividend undervalued to
distribution equity and equity distribution by their future
through related instruments investing earning potential
investing in of top 100 by predominantly in and carry medium
equity. market equity and equity risk profile to
capitalisation. related instruments, provide Capital
which offer high appreciation.
dividend yield.
Asset Equity Equity Minimum Equity Minimum 100% in equity

allocation Minimum 70% 65% and Debt 65% and Debt
and Debt maximum 35% maximum 35%
maximum 30%
Min. invest Rs. 5000/- Rs. 5000/- Rs. 5000/- Rs. 5000/-
Amt.
Exit Load Within year 1% Within year 1% Within year 1% Within year 1%
after that Nil after that Nil after that Nil after that Nil
Plans/Options Dividend Dividend Growth Dividend Growth Dividend Growth
Growth
SIP Yes Yes Yes Yes
SWP
Trigger Yes Yes Yes Yes
Fund Size (Rs. 2,275 804 1,794 420
In Cr)
Expense Ratio 1.81% 2.33% 2.09% 1.63%
Equity Funds Category
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Features Mid Cap Fund Opportunity Fund Wealth Builder Banking Sector
Fund Ser. 2 Fund
Objective An open ended The scheme seeks To achieve long An open ended
fund with the to generate capital term capital fund with the
objective to appreciation and/ appreciation by objective to
provide or income investing provide ‘Capital
‘Capital distribution by predominantly in a Appreciation
Appreciation’ investing the funds diversified portfolio through
by investing of the scheme in of equity and equity investment in
primarily in the equity shares related instruments stocks of
mid caps and equity related along with companies/
stocks. instruments. The investments in institutions
focus of the GOLD ETF’s and engaged in the
scheme is to Debt and Money banking and
capitalise on Market Instruments. financial services
opportunities activities.
arising in the
market by
responding to the
dynamically
changing Indian
economy by
moving its
investments
amongst different
sectors as
prevailing trends
change.
Asset allocation Equity Equity Minimum Equity 65% and 90% Equity
Minimum 90% 90% and Debt Debt 35% or Gold
and Debt maximum 10% ETF 35%
maximum 10%
Min. invest Rs. 5000/- Rs. 5000/- Rs. 5000/- Rs. 5000/-
Amt.
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Exit Load Within year 1% Within year 1% Within year 1% Within year 1%
after that Nil after that Nil after that Nil after that Nil
Plans/Options Dividend Dividend Growth Dividend Growth Dividend Growth
Growth
SIP Yes Yes Yes Yes
SWP
Trigger Yes Yes Yes Yes
Fund Size (Rs. 307 1,293 501 123
In Cr)
Expense Ratio 2.40% 2.32% 2.37% 2.50%
Balanced Funds Category
Features CCP Children Career Unit Linked Retirement

Advantage Balanced Plan Insurance Plan Benefit Pension
Fund (ULIP) Fund
Objective Equity and Funds collected Investment Investment
related under the plan will objectives of the objective and
instruments be invested in scheme are primarily policies of the
minimum- equities, to provide return scheme are
70% to 100%, convertible and through growth primarily to
debt and nonconvertible inters NAV or provide pension in
money market debentures/ bonds through dividend the form of
instruments of companies/ distribution and periodical
including corporates etc. and reinvestment thereof. income / cash
securitized others capital and flow to the unit
debt* money market holders to the
minimum- 0% instrument subject extent of
to maximum to the condition redemption value
30%* that (1) non less of their holding
investment in than 60% of the after they
securitized funds will be complete 58 years
debt will not invested in debt of age.
normally instruments of law
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exceed 20% of to medium profile
the net assets having a rating of
of the scheme. A+ and above or
equivalent at the
time of investment
and (2) not more
than 40% of the
funds in equities
and related
instruments.
Asset Equity Equity Minimum Equity Minimum Not more than

allocation Minimum 70% 40% and Debt 40% and Debt 40% in Equity
and Debt maximum 60% maximum 60%
maximum 30%
Min. invest Rs. 1000/- Rs. 1000/- Target amount Rs. 500/- to gain
Amt. enhance to Rs. 10000/-
15,00,000/- and min
15000/-
Exit Load 4% < 1yr 3% < 2yr 2% for premature 5% < 1yr
3% >= 1yr & < 2% >= 2yr & < 4yr withdrawal 3% >= 1yr & <
3yr 1% >= 4yr & < 5yr 3yr
1% >= 3yr & < 1% >= 3yr & <
5yr 5yr
Plans/Options Income Scholarship 10yr Plan/ 15yr Plan
Growth Growth
SIP Yes Yes Yes Yes
SWP Yes
Trigger
Fund Size (Rs. 45.31 2,729.53 2,915.45 610.39
In Cr)
Expense Ratio 1.40% 1.64% 1.65% 1.47%
Income Funds Category

Features Short Tern Income Treasury Advantage Fund Floating Rate Fund
Fund
Objective To Generate Steady and The scheme will endeavour The investment
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Reasonable income, with to generate an attractive objective of the
low risk and high level of return for its investors scheme is to generate
liquidity from a portfolio consistent with capital regular income though
of money market preservation and liquidity investment in a
securities and high by investing in a portfolio of portfolio comprising
quality debt. quality debt securities, substantially a floating
money market instruments rate debt/ money
and structured obligations. market instruments,
fixed rate debt/ money
market instrument
swapped for floating
rate returns.
Asset Equity Minimum 65% 100% in Debt Fixed Debt 35% and
allocation and Debt maximum 35% Floating Rate Debt 65
to 100%
Min. invest Rs. 30000/- Rs. 100000/- Rs. 5000/-
Amt.
Exit Load 1% redeemed before 90 Nil 0.75% redeemed
day within 3 days
Plans/Options Income Growth and STP LTP and Growth Dividend Dividend Growth
Bonus
SIP Yes Yes
SWP
Trigger
Fund Size (Rs. 1,371.08 29,129.52 4,965.60
In Cr)
Expense Ratio 0.26% 0.35% 0.20%
Liquid Funds Category
Features Money Market Fund Liquid Fund Cash Plan

Objective To provide highest possible The investment objective of the
current income consistent with scheme is to generate steady and
preservation of capital and reasonable income, with low risk
providing liquidity from investing and high level of liquidity from a
in a diversified portfolio of short portfolio of money market
Page
45
term money market securities. securities and high quality debt.
Asset allocation 100% debt and money market Equity Minimum 65% and Debt
maximum 35%
Min. invest Amt. Rs. 10000/- Cash Plan-
Rs. 1,00,000/-
Exit Load Nil Nil
Plans/Options Dividend Growth Income Growth and CP
SIP
SWP
Trigger
Fund Size (Rs. In Cr) 1,270.95 5,716.92
Expense Ratio 0.20% 0.26%
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46
Consumer Buying perception- An Introduction
Consumer is God, Consumer is always right, Consumer is the most important guest
in our premises — these are some of the phrases that have been in use since the advent of
business. Earlier, the market used to be small and limited to a few manufacturers and
consumers, but as it expanded beyond geographical boundaries, sellers as well as buyers
increased several folds. The free market has led to cutthroat competition among the
manufacturers who are trying to capture as much market share as possible.
Almost all major companies, whether in telecommunication, banking, credit card,

finance or IT, have realized the importance of consumer and are therefore trying to retain
their loyalty. Organizations are now, just not only selling product or services, but also
expanding their operations to understand their consumer’s demographic profile, buying
perception and preferences in order to build long-lasting relationship.
According to Phillip Kotler,

“Consumer Buying perception refers to the perception of ultimate user of the
product”.
“The decision processes and acts of final household consumers associated with
evaluating, buying, consuming, and discarding products for personal consumption.”
“An analysis of the consumer’s perception in terms of consumer consumption patterns,

consumer preferences, consumer motivation, consumer buying process and shopping
perception is very much helpful to formulate a firm’s marketing strategy. “
Objectives of studying Consumer Buying perception:
 Buyers’ reactions to a firms marketing strategy has a great impact on the firms’
success.
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47
 The marketing concept stresses that a firm should create a Marketing Mix (MM) that
satisfies (gives utility to) customers, therefore need to analyse the what, where, when
and how consumers buy.
 Marketers can better predict how consumers will respond to marketing strategies.
The study of consumers helps firms and organizations improve their marketing strategies by
understanding issues such as how
 The psychology of how consumers think, feel, reason, and select between
different alternatives (e.g., brands, products);
 The psychology of how the consumer is influenced by his or her environment
(e.g., culture, family, signs, media);
 The perception of consumers while shopping or making other marketing
decisions;
 Limitations in consumer knowledge or information processing abilities
influence decisions and marketing outcome;
 How consumer motivation and decision strategies differ between products that
differ in their level of importance or interest that they entail for the consumer;
and
 How marketers can adapt and improve their marketing campaigns and
marketing strategies to more effectively reach the consumer.
Understanding these issues helps us adapt our strategies by taking the consumer into
consideration. For example, by understanding that a number of different messages compete
for our potential customers’ attention, we learn that to be effective, advertisements must
usually be repeated extensively. We also learn that consumers will sometimes be persuaded
more by logical arguments, but at other times will be persuaded more by emotional or
symbolic appeals. By understanding the consumer, we will be able to make a more informed
decision as to which strategy to employ.
So the ultimate objective of a business firm is to create a consumer who is said to be pivot
around which the entire business of a firm revolves. Thus the marketing concept is consumer
oriented and the emphasis is more on the consumer rather than on the product. The essence
of modern marketing lies in building of profit along with creating meaningful value
satisfaction for the costumers, whose needs and desires have to be coordinated with the set
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48
of products and production programmes. Therefore, marketing success an enterprise depends
as its ability to create a community of satisfied consumers. All the business activities should
be carried out in ways which are directed towards the satisfaction of the consumer needs.
The marketing concept is consumer oriented and the emphasis is more on the consumer
rather than on the product. The essence of modern marketing lies in building of profit along
with creating meaningful value satisfaction for the costumers, whose needs and desires have
to be coordinated with the set of products and production programmes. Therefore, marketing
success an enterprise depends as its ability to create a community of satisfied consumers.
All the business activities should be carried out in ways which are directed towards the
satisfaction of the consumer needs. Consumer perception is affected by a host of variables
ranging from personal, professional needs, attitudes and values, personality characteristics,
social economic and cultural background, age, gender, professional status to social influences
of various kinds exerted a family, friends, colleagues, and society as a whole. The
combination of these factors help the consumer in decision making further Psychological
factors that as individual consumer needs, motivations, perceptions attitudes, the learning
process personality characteristics are the similarities, which operate across the different
types of people and influence their perception.
Marketing starts with the consumers and ends with the consumer. Satisfaction of the
consumers becomes the most important goal of a business enterprise. The effort to ensure
consumer satisfaction lies in understanding the consumer, his likes dislikes, his expectations
and motivation.
Buying perception is the decision processes and acts of people involved in buying and using
products.
Consumer Buying perception refers to the buying perception of the ultimate consumer. A
firm needs to analyze buying perception for:
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49
 Buyers’ reactions to a firms marketing strategy has a great impact on the
firms’ success.
 The marketing concept stresses that a firm should create a Marketing Mix
(MM) that satisfies (gives utility to) customers, therefore need to analyze the
what, where, when and how consumers buy.
Marketers can better predict how consumers will respond to marketing strategies.
The Investor Prospective Towards Various Assets
ASSET Investment Risk Investment

Objective Tolerance Horizon
Equity Capital High Long
Appreciation
Mutual Fund Capital Moderate Long
Appreciation
Bank Deposit Income Generally Flexible all Terms
Flexible Low
PPF Income Low Long
Gold Inflation Hedge Low Long
Life Insurance Risk Cover Low Long
This table shows investors prospective towards Assets like Equity, Mutual Fund, Bank
Deposit, PPF, Gold and Life Insurance. From this table it is clearly understand the Investment
objective, Risk tolerance & Time horizon for different Asset Classes.
RESEARCH METHODOLOGY
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50
Research is a systematic activity carried out in the pursuit of truth, which is a purposive
investigation. It is a way of finding new ways of looking a familiar thing in order to explore
ways of changing it. It is an activity that extends, corrects and verifies knowledge. It includes
introduction of the study, objectives, benefits & limitations of the project.
Over here researcher has applied exploratory research which will take into consideration the
following points.
 A review of pertinent literature.
 An experience survey.
 An analysis of insight stimulating cases
Advantage:
 It does not have formal or rigid design.
 It aims at generating new ideas.
 It helps in assessing the feasibility of further study.
 It attempts to see what is there rather than predicting the same.
Limitations:
 It is a pilot studies thus usually an ill structured.
 It is not specific in nature.
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51
Research Objectives:
Primary Objective:
 To know the Consumer perception of investors towards Mutual Funds.
Secondary Objectives:
 To know people’s awareness about various schemes for investment in Mutual Fund.
 To know the investors knowledge and perceptions about mutual fund.
 To know the investor priority level between different criteria of investment like safety
level, returns, liquidity, tax benefits and maturity etc. of investment.
 Find out reason for choice of mutual fund as an investment avenue.
 To identify the social factors that affect investors’ buying perception in Ahmedabad.
 To measure the satisfaction level of investors regarding various parameters for
investment in Mutual fund.
 Find out reason for choice of mutual fund as an investment avenue.
METHODOLOGY- The science dealing with principles of procedure in research and

study.
 Various investment options have been selected like Mutual Fund, Gold, Bank
Deposits, Post Office Savings and Insurance.
 Various parameters taken for comparison
 Risks
 Time Horizon
 Return on Investment
 Liquidity
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52
Type of Data
 Primary Data:
Utilizing the information from the Secondary data, questionnaire was prepared to
study the investors’ perception. Primary data were collected directly from the
respondents to solve the problem.
 Secondary Data:
Secondary data were collected from many sources like books, websites and
company’s report.
Research Approach:
Survey method was adopted to gather the primary data. This survey included face-to-face
interview with respondents.
Sampling Plan
Target population: Investor who invests money into various investment options.
Sampling Element: High Net worth Investors (HNI) and middle class retail investors.
Sampling technique: The sampling technique used for sampling is:
 Random sampling.
 Quantitative Sampling.
 Convenience sampling
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53
Sample size: The sample size of the study is around 60 respondents.
Area of Survey: Ahmedabad
The main statistical tools used for the collection and analyses of data in this project are:
 Questionnaire
 Pie Charts
 Bar Diagrams
Data Analysis and Interpretation:
Data analysis will be done through graphical method and using SPSS software and Chi
square test, where questionnaire will be analyzed and various test will be performed on it to
reach to the final conclusion. Result will be given on the basis of the descriptive statistical
technique.
Limitations:
 As we limited time span so it is not possible to cover each & every detail of the topic.
 Company uses various software’s which have certain financial information and I as a
trainee cannot access them.
 As the samples are taken randomly and population size of Ahmedabad is large,
sample errors are inevitable.
 The study will heavily depend on primary data which will be collected from public at
large; hence the authenticity of data can be a limitation.
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54
1. Age Group:
Frequency Per cent
18 years - 30 years 9 15
Above 50 years 12 20
50
50 Frequency
45 Column2
40
35 30
30
25 20
20 15 15
12
15 9 9
10
5
0
18 years - 30 years 31 years - 40 years 41 years - 50 years Above 50 years
From the questionnaire we got different age groups. From the above chart, it can be derived
that most of the investors are in the age group of 31 to 40. The reason being, they have
enough money to invest in risky market because they have job and they are well settled. This
would help us to know to whom we have to target.
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55
2. Business or Job/service
Frequency Per cent

Business 6 10
Job 54 90
90
90
80
70 54
60
50 Frequency
40 Column2
30 10
20 6
10
0
Business Job
Most of the people, who are interested in investment, have jobs and we met very few business
class people who are likely to invest in market. Through this we come to know that we should
target on investor who is in job.
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56
3. Annual Income
Frequency Per Cent

Up to 2 lac 6 10
2 lac to 5 lac 39 65
Above 5 lac 15 25
65
70
60
50 39
40 Frequency
25
30 Column2
15
20 10
6
10
0
Up to 2 lac 2 lac to 5 lac Above 5 lac
As per income status, most of the investors belong to income group of 2 lac to 5 lac. From
this we come to know that investors belong to income group 2 lac to 5 lac invests more than
above 5 lac.
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57
4. Where do you invest?
Frequency Per Cent

Bank Deposit 12 20
Share Market 24 40
Mutual Fund 15 25
Others 9 15
40
40
35
30 24 25
25 20
20 15 15 Frequency
12 Column2
15 9
10
5
0
Bank Deposit Share Market Mutual Fund Others
From the above table we have come to know that the preference of the different investment of
the investor while investing their money that is bonds & insurance products are most
important investment avenue for the investors. Than after money market instrument and
equity share are important for the investors.
Most of the investors like to invest in share market. As per above chart, about 40% investor
invest in share market. The size of the world stock market was estimated at about $36.6
trillion US at the beginning of October 2009. Participants in the stock market range from
small individual stock to large hedge fund traders, who can be based anywhere. That’s reason
why more people invest in stock market.
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58
5. Are you regular investor?
Frequency Per cent

Yes 42 70
No 18 30
70
70
60
42
50
40 30 Frequency
30 18 Column2
20
10
0
Yes No
Most of the investors choose to make safe investments for the long-term, but have to rely on
stock tips from friends or rumors doing rounds of the stock market. Most investors try to time
the market and often get unduly influenced by market rumors and tips and end up making
losses on investments that lack rationale. We concluded from the data that about 70% people
we met are regular investor and only 30% investors invest occasionally.
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59
6. Do you want to invest in Mutual Fund?
Frequency Per cent

Yes 27 45
No 33 55
55
60
45
50
40 33
27 Frequency
30
Column2
20
10
0
Yes No
From the above table we have come to know criteria’s considered while investing in MF by
the investors that is finance planner advice and the AMC image are most important criteria’s
for the investors while investing in mutual fund. Than after fund performance and tax
incentive are important.
From the surveys which we have done, we have come to know that the people who want to
invest in mutual fund are less than the people who want to invest in other money market
instruments. The major challenge is that how we can convert their investments from other
money market instruments towards mutual fund.
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60
7. Are you aware about all the features of Mutual Fund?
Frequency Per cent

Yes 36 60
No 24 40
60
60
50
40
36
40 Frequency
Column2
30 24
20
10
0
Yes No
The investor who knew about mutual fund intensely is 60% and others are not aware about
mutual fund schemes and mutual fund as a system.
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61
8. Would you like to have information on Mutual Fund?
Frequency Per cent

Yes 24 40
No 36 60
60
60
50 40
36
40
24 Frequency
30
Column2
20
10
0
Yes No
As above, there are 40% people are not aware about mutual fund and 60% are aware of the
mutual fund. From that 40% people only 8% want to have full information.
From the survey, we come to know the purpose to investing in MF is that low risk and
collective investments are most important purpose of the investor for the investing in mutual
fund. Than after return potential and advantage of professional management are important
while investing in mutual fund.
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62
9. What do you consider during making any investment?
Frequency
Transparency 27
Liquidity 18
Returns 30
Tax Saving 18
Regular Income 25
Risk 18
30
30 27
25
25
18 18 18
20
15
10 Column3
From the above table we have come to know that the important criteria considered by most of
the investors more about the returns and focus equally on regular income and transparency.
So there should such schemes which provide them what they actually want or they consider
while investing. This helps us to know that to what scheme does investor is looking for.
These also help us to easily crack the deal.
Key Findings
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63
This training program has played a significant role in understanding the Consumer
perception. It help to know about the preferences of investors it give them knowledge about
the different investment options available for investment.
Our Key findings are as follows:

 69 % people are aware of the mutual fund.
 Convenience and risk are most important criteria considered by the investor while
investing their money.
 Tax benefit and safety of the investment are most important objective of the investors.
 48% have shown interest to invest in mutual fund.
 Income fund & specialized fund are most important for the investing in mutual fund.
 66% people have income level of Rs. 50,000- Rs.10000/-
 In this current scenario Mutual Funds & Bank deposits become the most preferred
investment option.
 Now a day’s investors want to invest their money for long term prospective to reach
their financial goal and maximizing wealth.
 Yield and return is the most important preference at the time of investment.
 Age group & Income is the most important factor in determining the risk capacity of
individual
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64
Concluding Observation:
The present study looks at customer expectation levels in a mutual fund product. This kind of
customer orientation is necessary in a market like India where the market is turning
competitive due to large number of players with varied financial muscle powers and expertise
of reinvestment. The small investors purchase perception does not have a high level of
coherence due to the influence of different purchase factors. The buying intent of a mutual
fund product by a small investor can be due to multiple reasons depending upon customers
risk return trade off. Due to the reduction in the bank interest rates and high degree of
volatility in Indian stock market, investors are looking for an alternative for their small time
investments which will provide them a higher return and also safety to their investments. The
bond market is also passing through a recession due to its interest parity with bank
instruments. So mutual funds offer the best alternative to the small investors in India. A
prudent product design by adding the features expected by investors and spelt out in this
research will make the new mutual fund products attractive for the Indian investors. The
factors identified in the study provide key information inputs regarding investor’s preferences
and priorities that will guide future mutual fund product managers in designing attractive
mutual fund products for the Indian market.
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65
Learning:
 Convenience & risk are most important criteria considered by the investor while
investing their money.
 Tax benefit and safety of the investment are most important objective of the investors.
 Investors are concerned about the returns.
 MF is good investment tool because of several benefits like Professional
Management, Risk Reduction, Flexibility, Transparency and Low Transaction Cost.
 As Mutual Fund provides more returns than PPF, Post, Bonds, Fixed Deposit, and
Equity in Long Term so more investors are diverted towards it.
 Age group & Income is the most important factor in determining the risk capacity of
individual
Recommendations:
 Most of the investors belong to age category of 30 to 40, so there is huge market
available for new and young investor. Fresher are not able to make huge investment at
once so there should be one scheme, especially for the new comer.
 Income group of 2 lac to 5 lac is making more investment than others, so there is
scope and market for mutual fund in this market.
 About 70% of investors are regular investors, so there is need to catch that market as
well.
 Mutual Fund, the concept is widely known, but many people are still unaware about
various schemes of mutual fund, increasing awareness is also very important thing.
 There is a need to introduce very aggressive scheme which can give maximum returns
to investor as they are more concern about return, transparency and regular income
than risk and liquidity.
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66
References
Websites:
 www.amfiindia.com
 www.utimf.com
 www.mutualfundindia.com
 www.mutualfunds.about.com
 www.utiamc.com
PDF’s:
 Mutual Fund Investors Guide
 Trainer Note AMFI
Books:
 Fact sheet of UTI mutual fund

 Understanding Mutual Fund- Sunita Abraham & Uma Shashikant
Page
67
Questionnaire- UTI AMC
Kunjkant Pandya
Anjali Kathuria
Management Trainee Management Trainee
09978426133 08905573195
(Note: This information is used only for academic Purpose.)
Personal Details:
Name: ____________________________________________Age:__________
Address:_________________________________________________________
E-Mail: ______________________________Contact No.:__________________
Designation:__________________
Professional Details:
1. Business Job/Service
2. Annual Income:
Up to 2 lac 2 lac to 5 lac Above 5 lac
3. Where do you invest?
Bank Deposit Share Market
Mutual Fund Others_____________________________________
4. Are you a regular investor?
Yes No
5. If in Mutual Fund than in which scheme
_________________________________________________________
___________________________________________________________
6. If not, Want to invest in Mutual Fund in Future
Yes No
7. What do you do for saving your Tax?
___________________________________________________________
___________________________________________________________
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68
8. Are you aware about all the features of Mutual Fund?
Yes No
9. Would you like to have information on Mutual Fund?
Yes No
10. What do you consider during making any investment?
Transparency Liquidity Returns
Tax Saving Regular Income Risk
Signature
Thank You…
Page
69

CONSUMER PERCEPTION UTI-Mutual-Fund

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CONSUMER PERCEPTION UTI-Mutual-Fund

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A Project Report

Masters of Business Administration (MBA)

SUBMITED TO: SUBMITED BY:

Sr. No. Subject Page No.

The main objectives are

• To know the awareness of mutual fund amongst the investor

• To know the investors knowledge and perceptions about mutual fund.

• Find out reason for choice of mutual fund as an investment avenue.

UTI International Ltd

UTI RSL (Retirement Solutions Limited)

Worldwide Mutual Fund Assets by type of fund:

Worldwide Mutual Fund Assets by Region:

“To be the most preferred Mutual Fund.”

 The most trusted brand, admired by all stakeholders

Phase 1. Establishment and Growth of Unit Trust of India - 1964-87

Phase II. Entry of Public Sector Funds - 1987-1993

Assets Under Mobilisation as % of gross

UTI 11,057 38,247 5.2%

Public Sector 1,964 8,757 0.9%

Total 13,021 47,004 6.1%

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

Phase IV. Growth and SEBI Regulation - 1996-2004

GROSS FUND MOBILISATION (RS. CRORES)

01-April-98 31-March-99 11,679 1,732 7,966 21,377

01-April-99 31-March-00 13,536 4,039 42,173 59,748

01-April-00 31-March-01 12,413 6,192 74,352 92,957

01-April-01 31-March-02 4,643 13,613 1,46,267 1,64,523

01-April-02 31-Jan-03 5,505 22,923 2,20,551 2,48,979

01-Feb.-03 31-March-03 * 7,259* 58,435 65,694

01-April-03 31-March-04 - 68,558 5,21,632 5,90,190

01-April-04 31-March-05 - 1,03,246 7,36,416 8,39,662

01-April-05 31-March-06 - 1,83,446 9,14,712 10,98,158

ASSETS UNDER MANAGEMENT (RS. CRORES)

Phase V. Growth and Consolidation - 2004 Onwards

Some basic facts:

In US, every third household is a mutual fund investor.

In US, MF assets are 1.5 times the bank deposit.

Assets Under Management:

Mutual Fund- An Introduction

A mutual fund may be either an open-end or a closed-end fund. An open-end mutual

Mutual Fund Global Overview

Benefits of investing in Mutual Funds:

There are several benefits from investing in a Mutual Fund:

 Professional Fund Management: Professionals having considerable expertise,

 Transparency: Mutual Funds regularly provide investors with information on the

 Flexibility: Through features such as Systematic Investment Plans (SIP), Systematic

 Diversification: Mutual Funds invest in a number of companies across a broad cross

Limitation of Mutual Fund:

Rights of Unit holders:

 Receive unit certificates or statements of accounts confirming your title within 30

Organizational Structure of Mutual Fund Industry:

Mutual Fund Transfer Agent

UTI MF CNBC Award 2009.

Some of the investment plans offered by mutual funds in India are:

Growth Plan and Dividend Plan

Dividend Reinvestment Plan

Types of Mutual Fund:

Open Ended Schemes:

The advantages of open-ended funds over close-ended are as follows:

Close Ended Schemes:

Income/ Debt Funds

Sector funds primarily invest in companies of a particular sector/ industry such as

Tax Saving Funds (ELSS)

E-Mail: ____________Contact No.: