Introduction

In this competitive world, every company is looking to have an edge over another company, or an advantage over another company, to be the best. To achieve all this, a company must go through a vigorous research about the consumer awareness and their requirements, to provide them with better services. In this report a sincere attempt has been made to study on awareness of mutual fund, where people would like to park their money. This report is based on the market survey and research conducted to determine the ³CONSUMER AWARENESS OF MUTUAL FUND´. The topic ³Consumer Awareness of Mutual fund and prospective customers´ is selected keeping in mind the following OBJECTIVES.      To know where people prefer to invest. To know what are products features investors are looking into. To know whether people are interested in knowing about mutual fund. To know what people looking from their investment. To create awareness about mutual funds in the minds of new customers.

These objectives of the study will help to ascertain the awareness of mutual fund that may further guide the company to improve its products features and services. This survey includes various professionals,

business men/women, house wife, salaried job people few customers of Standard Chartered Mutual Fund. A mutual fund represents a vehicle for collective investment. When you participate in a scheme of a mutual fund, you become a part owner of the investments held under that scheme.  A variety of schemes are offered by mutual funds. Based on the investment policy, the mutual fund schemes are broadly classified as follows: equity schemes, and debt schemes. 

The investments of mutual fund are subject to a set of regulations prescribed by SEBI. 
The mutual fund business is highly concentrated fund-wise and scheme-wise. The dominant position of the UTI in the industry has already been referred to. Similarly, a handful of schemes account for a major part of the unit capital.

SBI Mutual Fund was the first non.UTI Mutual Fund established in June 1987 followed by Can bank Mutual Fund (Dec 87). The history of mutual funds in India can be broadly divided into four distinct phases First Phase ± 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament.6. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1993.700 crores of assets under management. At the end of 1988 UTI had Rs. Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.004 crores. . Indian Bank Mutual Fund (Nov 89).47. Bank of India (Jun 90). Punjab National Bank Mutual Fund (Aug 89). In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. at the initiative of the Government of India and Reserve Bank of India.UTI.INDUSTRY PROFILE The mutual fund industry in India started in 1963 with the formation of Unit Trust of India. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). Second Phase ± 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non. the mutual fund industry had assets under management of Rs.

under which all mutual funds. sponsored by SBI. representing broadly.44.541 crores of assets under management was way ahead of other mutual funds. PNB. following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. a new era started in the Indian mutual fund industry. giving the Indian investors a wider choice of fund families. 1. except UTI were to be registered and governed. BOB and LIC.29. there were 33 mutual funds with total assets of Rs. The second is the UTI Mutual Fund. assured return and certain other schemes. The number of mutual fund houses went on increasing. the assets of US 64 scheme. It is registered with SEBI and functions under the Mutual Fund Regulations. The industry now functions under the SEBI (Mutual Fund) Regulations 1996.21. functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. As at the end of January 2003.805 crores. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. 1993 was the year in which the first Mutual Fund Regulations came into being. with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. The Specified Undertaking of Unit Trust of India. Fourth Phase ± since February 2003 In February 2003. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs. With the bifurcation of the erstwhile . Also. The Unit Trust of India with Rs.835 crores as at the end of January 2003.Third Phase ± 1993-2003 (Entry of Private Sector Funds) With the entry of private sector funds in 1993.

Asset Management Company (AMC) and custodian.000 crores of assets under management and with the setting up of a UTI Mutual Fund. Custodian. holds the securities of various schemes of the fund in its custody. conforming to the SEBI Mutual Fund Regulations.76.e. However. trustees. . SEBI Regulations require that at least two thirds of the directors of trustee company or board of trustees must be independent i. they should not be associated with the Sponsors. All mutual funds are required to be registered with SEBI before they launch any scheme. 2002). The trustees of the mutual fund hold its property for the benefit of the unit holders. who is registered with SEBI. Asset Management Company (AMC) approved by SEBI manages the funds by making investments in various types of securities.UTI which had in March 2000 more than Rs. and with recent mergers taking place among different private sector funds. Also. Unit Trust of India (UTI) is not registered with SEBI (as on January 15. The trust is established by a sponsor or more than one sponsor who is like promoter of a company. The trustees are vested with the general power of Superintendence and direction over AMC. the mutual fund industry has entered its current phase of consolidation and growth. which has sponsor. They monitor the performance and compliance Of SEBI Regulations by the mutual fund. SET UP OF A MF A mutual fund is set up in the form of a trust. 50% of the directors of AMC must be independent.

Karvy Depository services and investor services. RANGE OF SERVICES The range of services offered by Karvy group of companies are issue servicing. offering various financial services to suit every requirement /need by investors.COMPANY PROFILE KARVY INVESTOR SERVICES LIMITED is a I0O% subsidiary of karvy consultants limited! and was set up to undertake Merchant banking. By virtue of its access to million of Indian share holders. in addition to companies. Asset financing. Loan syndication and Project Financing Products.e. Karvy also has taken the dealership of the OCTIE. karvy has in the process built up a positive reputation with regulatory authorities and other government agencies emphasis on the following factors has been instrumental in helping them attain the leadership in the financial service sector. Distribution of financial products consequent to the flew SEBI guidelines which directed that an NBFC should set up separate companies for handling fee based and fund based activities. banks and financial institutions. Mutual fund investor servicing. Corporate shareholder services. Karvy is well networked with over 60 full-fled gad branches and 112 investor Service centers with a work force of over 2000 professional drawn from various Disciplines. The parent company i. Merchant banking & Underwriting services. Karvy Consultants Limited Was founded by the group to professionals in 1982 and today it has evolved as integrated financial services company of repute. .

built up a positive reputation with regularity authorities and other government agencies. a group of Hyderabad-based practicing Chartered Accountants starred KARVY CONSULTANTS LIMITED with a capital of Rs.000 offering auditing and taxation services initially. Later. An ISO 9002 company. In January 1988. . banks. Karvy has access to millions of Indian shareholders. 50. All along. Karvy s commitment to quality and retail reach has made it an integrated financial service company. it forayed in to the registrar and share transfer activities and subsequently into financial services. Karvy became the first depository participant in Andhra Pradesh. offering various financial services to suit every requirement need of our customers. besides companies.e. Over the past one and half decades Karvy has evolved as a veritable link between industry. KARVY CONSULTANTS LIMITED was founded by a group of professionals in 1982 and today it has evolved as an integrated financial services company of repute.BACKGROUND In 1982. financial institutions and regulatory agencies.1. banks and financial institutions! Karvy has in the process. Today. KARVY AS AN INVESTMENT BANKER The parent company i. Karvy strong work ethic and professional background leveraged with information technology enabled it to deliver the quality to the individual. finance and people. By virtue of its access to millions of Indian share holders in addition to companies.

The marketing capability dovetailed with the range and quality of services has been the core attraction of many an issuer company. INVESTMENT BANKING ACTIVITIES AT KARVY MANAGEMENT OF CAPITAL ISSUES Private PLACEMENT OF DEBT AND EQUITY MERGERS AND AMALGAMATIONS LOAN SYNDICATION OTHER VALUE ADDED ACTIVITIES PATES OBTAINED BY KARVY AS INVESTMENT BANKER RATING AGENCY: PRIME PERLOC: APRIL JUNE 2000.3 among private merchant hankers (private and public sector) in terms of the aggregate public issues amount . which is viewed with envy in the market circles. and was set up to undertake the specialized activities of investment banking and distribution of financial products. in the recent years KARVY has caned a niche for itself in the management of the public issues.1 among private merchant bankers in terms of number of issues No.KARVY INVESTOR SERVICES LIMITED the investment banking arm of the karvy group is a 100% subsidiary of Karvy Consultants Limited. No.2 among private merchant bankers ri terms of the aggregate public issues amount No.

has a national reach through 14 branches and 64 investor services centers aided by a contingent of 5000 sub brokers. stock braking.Karvy has made its presence strongly felt in all the segments of capital market like depository participant services. . primary market distribution etc.

Reliance Vision. Somebody else might want to plan for his child¶s education while somebody might be saving for the proverbial rainy day or even life after retirement. These funds are low risk low return funds. With objectives defying any range. it is obvious that the products required will vary as well. The leading example of such funds are Prudential ICICI Growth Plan.PRODUCT PROFILE 1. Mutual Funds can be classified based on the objectives of the investor. others might give more weight age to returns alone. NAV of equity funds are fluctuated by fluctuation in price of shares that it holds. Franklin India Prima Fund etc. Principal Income Fund. Debt Fund: Debt funds invest in debt instruments debt instruments issued by governments. While somebody wants security. while providing some upside for capital . The idea is to reduce volatility of funds. private companies. Equity Fund: Equity funds invest a major portion of their corpus in equity shares issued by companies. The leading examples are: Birla Income Plus. BY OBJECTIVE Investment goals vary from person to person. Tata Pure Equity Fund. So there is a high risk as well as high return in equity fund. By investing in debt. these funds target low risk and stable income investors. Balanced Fund: A balanced fund is one that has a portfolio comprising debt instruments as well as preference and equity shares. UTI Bond Fund etc. HDFC Income Fund. (b). So. banks and financial institutions. (a). Potential to earn in such funds is higher when they are invested for long term. (c).

The leading examples are Prudential ICICI Gilt Fund. These schemes do not have a fixed maturity period. The leading examples are Prudential ICICI Liquid Plan. which generally means securities of less than one-year maturity such as Treasury Bills issued by governments. Birla Balance Fund.appreciation. The leading examples are Prudential ICICI Balanced Fund. Gilt Fund: These funds are sort of government funds wherein the investments are made in debt instrument of government. BY DURATION (a). (d). Tata Gilt Securities Fund. These funds are best suited for regular income and long term investment objectives. which carry no risk of non payment of interest as the RBI manages the payment of interest and principal on the investments. 2. Money Market Fund: Money market funds invest in securities of a short-term nature. The major strength of money market funds are the liquidity and safety of principal that the investors can normally expect from short term investments. Investors can conveniently buy and . Templeton India Liquid Fund. Certificates of deposit issued by banks and Commercial paper issued by companies. Franklin India Balance Fund. (e). They are best suitable for the people looking for a combination for capital appreciation and regular income and best time spend for such investment is more than 3 years. Templton India Government Securities Fund etc. Open-ended Fund: An open ended fund is one that is available for subscription and repurchase on a continuous basis. Sundaram Balance Fund etc. Grindlays Cash Fund etc.

These initial expenses may be recovered from the investors by entry or exit load. Entry Load or Front-end Load: If initial expenses recovered from investors at the time of investor¶s entry into the fund. They are open for sale or redemption during pre determined intervals at NAV related prices. (ii). 3. By Load: (a). These mutual fund schemes disclose NAV generally on weekly basis.g. 5-7 years. (b). (i). Exit Load or Back-end Load: If initial expenses recovered at the time of the investor¶s exit from the scheme.5% entry load on . Deferred Load: The load amount charged to the scheme over a period of time is called a deferred load. Close-ended Fund: A close ended fund has a stipulated maturity period e. or deferred load or any other charges for sales expenses are called no load funds. Interval Fund: Interval funds combine the features of open-ended and close-ended schemes. The fund is open for subscription only during a specified period at the time of launch of the scheme. But now it has been banned by SEBI. No Load Fund: Funds that don¶t charge entry. (iii). Load Fund: Marketing of new mutual fund scheme involves initial expenses. Investors can invest in the scheme at the time of initial public issue and thereafter they can buy or sell units on stock exchange where the units are listed at NAV. (b).sell units at NAV related prices which are declared daily basis. But now SEBI has confirmed that AMC can not charge entry load on new mutual fund. by deducting a specific amount from his initial contribution it is called Entry Load. exit. (c). The key feature of this fund is liquidity. Now. by deducting a specified amount from the redemption proceeds payable to the investor it is called exit load. generally all Mutual Fund companies charge 2 to 2.

HDFC Index Fund. Other types of fund: (a) Tax Saving Funds: These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act. E. E. Franklin India Pharma Fund etc.g. These types of funds are more risky compared to diversified funds. The leading examples are Birla IT Fund. Software. Franklin India Tax shield etc. (b) Index Funds: Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index. Petroleum etc. Pru. Pension schemes also offer tax benefits. There is 0. ICICI FMCG Fund.equity fund. etc. . 1961 as the Government offers tax incentives for investment in specified avenues. Templeton India Pension Plan. UTI Index Fund etc. Pharmaceuticals. The leading examples are Prudential ICICI Tax Plan. S&P NSE 50 index (Nifty). (C) Sector Funds: These are the funds which invest in the securities of only those sectors or industries as specified in the offer documents. Equity Linked Saving Scheme (ELSS). Prudential ICICI Index Fund. Generally there is no exit load on equity and sectoral funds to maintain liquidity of those funds. 4. The leading examples are Birla Index Fund. These schemes invest in the securities in the same weight age comprising of an index.25 to 1% exit load on gilt and income fund if investors exit from fund before specified time which is generally 3 to 6 months.g. Generally there is no entry load on gilt scheme and income fund. NAV of such funds are changed accordance with the change in the index.

(d) Commodity Funds: Commodity funds invest into the different commodities directly or through shares of commodity companies. However they also have additional risks such as the foreign exchange rate risk and their performance depends on the economic conditions of the countries they invest in. . Commodity fund invest in gold or shares of gold mines.g. Commodity funds have not yet developed in India. E. (e) Off Shore Funds: These funds invest in equities in one or more foreign countries there by achieving diversification across the country¶s borders.

 To gain practical knowledge about consumer attitude towards mutual funds.  To gain knowledge about the mutual funds and its operations  To study the level of interest of consumers to know about the new funds of mutual funds.NEED OF THE STUDY  The study is carried out to find out the level of consumer awareness on the mutual funds.  To find out how many consumers are satisfied and how many consumers are not satisfied with this mutual fund investment. .

SCOPE OF THE STUDY This study helps to know the awareness that consumers have towards the mutual fund and their level of satisfaction towards the investment on various mutual fund schemes and it helps me to understand why people investing in mutual funds. . It helps me to understand the market conditions.

 To study the interest of consumers for further investment in Mutual Funds. SECONDARY OBJECTIVE  To evaluate awareness about mutual funds providing by karvy  To study the general investment criteria of consumers. .  To find out how many people are interested to deal with karvy mutual funds.  To find in which investment tool people invest more.  To find out the future action of the consumers with respect to the awareness they obtain through karvy.OBJECTIVES OF THE STUDY PRIMARY OBJECTIVE  To study the consumer awareness on mutual funds and its various schemes in karvy share broking Ltd.

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.