G.L.

Bajaj Institute of Management and Research

Approved by A.I.C.T.E., & Affiliated to Dr. A.P.J. Abdul Kalam Technical University (Formerly UPTU Lucknow)
Plot No. 2, Knowledge Park III, Greater Noida, Dist. G.B.Nagar, U.P., India Pin-201306

RESEARCH PROJECT REPORT

ON
“Analysis of Mutual funds Help of Karvy”
FOR

“THE PARTIAL FULLFILLMENT OF THE

REQUIREMENT FOR THE AWARD”
OF
MASTER OF BUSINESS ADMINISTRATOR

Under the Guidance of: Submitted By:

Bhaskar Gupta
1580170053

ACKNOWLEDGMENT
[1]
The entire project from the very idea of it really would not have been possible without the
guidance and support of many people.
I express my deep gratitude to Mr. Sanjeev Kumar & Vipin kumar of KARVY
CONSULTANTS LIMITED for providing me the necessary guidance, which helped me in
completing the project.
I am also thankful to staff member of Karvy Consultants Limited who supported me at
intermittent interval.
I am indebted to my MBA coordinator as well as my all the faculties members of our MBA
dept. for their supervision and guidance.

Kanak Verma

1580170080

[2]
[3]
 Declaration

I Kanak Verma Roll no 1580170080 student of MBA of G.L.BAJAJ hereby declare

that the project report on “Analysis of Mutual funds Help of Karvy” is an original
[4]
and authenticated work done by me. I further declare that it has not been submitted
elsewhere by any other person in any of the University for the Award of any degree or
diploma.

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 1

2. OBJECTIVE OF STUDY 4

3. INTRODUCTION OF INDUSTRY 6

4. COMPANY PROFILE 10

5. List of Mutual Fund Clients of KARVY 58

[5]
6. SWOT ANALYSIS 59

7. SCOPE & IMPORTANCE 62

8. RESEARCH METHODOLOGY 64

11. DATA ANALYSIS 72

12. FINDING OF STUDY 85

13. RECOMMENDATIONS 88

14. LIMITATIONS 91

15. CONCLUSIONS 93

16. BIBLIOGRAPHY 96

[6]
[1]
In this modern competitive world when business is touching new heights, each & every

company of every industry is trying to make maximum utilization of available resources with

an aim of maximizing sales turnover, profits and above all the customer’s satisfaction.

For the deep inclination into the management concepts practical work is an

important aspect. Theoretical knowledge gives us the fundamental concepts of management

and practical work teaches us management tact and skills, which are successfully employed

to capture today’s competitive market. The main objective of Dissertation and Project is

getting used to with the necessary theoretical inputs and to gain sufficient practical exposure

to establish distant linkage between the conceptual knowledge to practical situations.

Practical work thus plays an important role in developing and sharpening one’s skill in the

field of business and management and administration.

There is big fight going on each segment of various types of share market. There exist a

good number of competitive companies in each segment, which are trying hard to sell

maximum number of cases in that segment to snatch maximum market share as it is

directly related to the profits, sales turnover and image of the companies.I had completed

my summer training from Karvy consultants Ltd.

The whole two month training period was a stress able period as my marketing skills were

explored by the company. Marketing research comprises one of the most important

fascinating facts of the marketing policies of the companies. All the learnt theories seem too

flourished as practical situations in front of me while going through the work in the training

period. Topics like segmenting, targeting, positioning, customer behaviors were in mind

during the time stress.

[2]
I was assigned with the project “Analysis of Mutual Funds”in DELHI . In this report I have

tried to cover almost every aspect, which is directly or indirectly related in this segment in

the specified zone Initially, I conducted the pilot survey in which I tried to know the various

related factors. For this, I studied 50 consumers and tried to know what were their views

regarding the brand loyalty in the city and also found good and bad things about the mutual

thing.

I mainly focused on what kind of marketing strategies Karvy consultant Ltd. will require to

develop so as to responsible market share of share market of different brand in this market

region. After collecting the related data from these sources, I analyzed the data and come

up with various strong and weak points, on the basis of which I have derived certain

conclusions and recommendations.

[3]
In this project report conducted there is more than one objective taken which are given

below:-

 To study the investment pattern of people in various options available like: banks, post

office, L.I.C., shares etc.

 To study the investment pattern of people in mutual fund.

 To find out which type of mutual fund is preferred by the investors.

 Study factor responsible for the low investment in mutual funds.

 To study if people are aware of the different services provided by the KARVY.

[4]
  To study about different facilities of KARVY and its impact on attracting more

customers.

 To study, what is the locking period preferred by the people?

 To study, what percentage of income do people invest in mutual fund?

 To study, how much money can people invest in mutual fund?

 To study the risk factor involved in mutual fund.

To study which mediator service do people to invest in shares, debentures etc

[5]
 INTRODUCTION OF THE MUTUAL FUND INDUSTRY

The Mutual Fund industry in India started in 1963 with the formation of Unit Trust of India,

at the initiative of the Government of India and Reserve Bank. The history of Mutual Funds

in India can be broadly divided into four distinct phases.

First Phase-1964-1987:

[6]
An act of parliament established Unit Trust of India (UTI) on 1963. It was set up by the

Reserve Bank of India and functioned under the regulatory and administrative control of the

Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial

Development Bank of India (IDBI) took over the regulatory and administrative control in

place of RBI. The first scheme launched by UTI was unit scheme 1964. At the end of 1988

UTI had Rs.6700 cores of assets under management.

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

1987 marked the entry of non-UTI public sector mutual funds setup by public sector banks

and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India

(GIC). SBI Mutual Fund was the first non-UTI Mutual Fund established in June 1987 followed

by Canara Bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian

Bank Mutual Fund (Nov 89) Bank of India (June 90), Bank of Baroda Mutual Fund (Oct

92).LIC established its mutual fund in June 1989 while GIC had setup its Mutual Fund in

December 1990.

At the end of 1993, the Mutual Fund industry had assets under management of Rs.47, 004

corers.

Third phase-1993-2003 (Entry of Private Sector Funds):

With the entry of private sector funds in 1993, a new era started in the Indian Mutual Fund

industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year

in which the first Mutual Fund regulations came in to being, under which all Mutual Funds,

except UTI were registered and governed. The erstwhile kothari pioneer (now merged with

Franklin Templeton) was the first private sector Mutual Fund registered in July 1993.In the

[7]
1993 SEBI (Mutual Fund) Regulation were substituted by a more comprehensive and revised

Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund)

Regulations 1996.

The number of Mutual Fund houses went on increasing, with many foreign Mutual Funds

setting up Funds in India and also the industry has witnessed several mergers and

acquisitions. As at the end of January 2003, there were 33 Mutual funds with the total assets

of 1, 21,805 corers. The Unit Trust of India with Rs.44, 541 corers of assets under

management was way ahead of other Mutual Funds.

Fourth Phase-since February 2003:

In the February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was

bifurcated into two separate entities. One is the specified undertaking of the Unit Trust of

India with assets under management of Rs.29, 835 corers as at the end of January 2003,

representing broadly, the assets of US 64 Scheme, assured return and certain other

schemes. The specified undertaking of Unit Trust of India, functioning under the rules

framed by Government of India and does not come under the purview of the Mutual Fund

Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It

is registered with SEBI and functions under the Mutual Fund Regulations. With the

bifurcation of the erstwhile UTI which had in March 2000 more than Rs. 76,000 crores of

assets under management and with the setting up of a UTI Mutual Fund, conforming to the

SEBI Mutual Fund Regulations, and with recent mergers taking place among different private

sector funds, the mutual fund industry has entered its current phase of consolidation and

[8]
growth. As at the end of 3 july 2015 there were 31 funds, which manage assets of Rs. 1,

26,726 crores under 386 schemes.

[9]
Organization Overview

[10]
INTRODUCTION OF KARVY-

“Success is a journey, not a destination.” If we look for examples to prove this quote then we can find many but
there is none like that of karvy. Back in the year 1981, five people created history by establishing karvy and company
which is today known as karvy, the largest financial service provider of India.

SUCCESS SUTRAS OF KARVY:

The success story of karvy is driven by 8 success sutras adopted by it namely trust, integrity, dedication,
commitment, enterprise, hard work and team play, learning and innovation, empathy and humility. These are the
values that bind success with karvy.

VISION OF KARVY:

To achieve & sustain market leadership, Karvy shall aim for complete customer satisfaction, by combining its human
and technological resources, to provide world class quality services. In the process Karvy shall strive to meet and
exceed customer's satisfaction and set industry standards.

MISSION STATEMENT:

“Our mission is to be a leading and preferred service provider to our customers, and we aim to achieve this
leadership position by building an innovative, enterprising , and technology driven organization which will set the
highest standards of service and business ethics.”

[11]
KARVY VALUES ARE-
Integrity
Responsibility
Reliability
Unity
Understanding
Excellence
Confidentiality

COMPANY OVERVIEW-

Karvy was established as karvy and company by five chartered accountants during the year 1979-80, and then its
work was confined to audit and taxation only. Later on it diversified into financial and accounting services during
the year 1981-82 with a capital of rs.150000. It achieved its first milestone after its first investment in technology.
Karvy became a known name during the year 1985-86 when it forayed into capital market as registrar.

EVOLUTION OF KARVY-

It is well said that success is a journey not a destination and we can see it being proved by karvy. Under this section
we will see that how this “Karvy and company” of 1980 became “Karvy” of 2008. Karvy blossomed with the setting
up of its first branch at Mumbai during the year 1987-88. The turning point came in the year 1989 when it decided to
enter into one of the not only emerging rather potential field too i.e.; stock broking. It added the feather of stock
broking into its cap. At the same time it became the member of Hyderabad Stock Exchange through associate firm
Karvy securities ltd and then Karvy never looked back……...it went on adding services one after another, it entered
into retail stock broking in the year 1990. Karvy investor service centers were set up in the year 1992. Karvy which
already enjoyed a wide network through its investor service centers, entered into financial product distribution
services in the year 1993. One year more and karvy was now dealing into mutual fund services too in the year 1994
but it didn’t stopped there, it stepped into corporate finance and investment banking in the year 1995.

Karvy’s strategy has always been being the first entrant in the market. Karvy again hit the limelight by becoming the
first registrar in the country to be awarded ISO 9002 in the year 1997. Then it stepped into the other most happening
sector i.e.; IT enabled services by establishing its own BPO units and at a gap of just 1 year it took the path of e-
Business through its website www.karvy.com . Then it entered into insurance services in the year 2001 with the
[12]
launch of its retail arm “karvy- the fin polis: your personal finance advisor”. Then in the year 2002 it launched its
PCG (Private Client Group) which looks after its High Net worth Individuals .and maintain their portfolio and
provides them with other financial services. In the year 2003, it commenced secondary debt and WDM trading.

It was a decade which saw many Indian companies going global…..so why the largest financial service provider of
India should lag behind? Hence, karvy launched “karvy global services limited” after entering into a joint venture
with Computer share, Australia in the year 2004.the year 2004 also saw karvy entering into commodities marketing
through karvy comrades.

In Year 2005 saw karvy establishing a separate branch for its insurance services under the head “karvy insurance
broking ltd” and in the same year, after being impressed with the rapid growth of karvy stock broking limited, PCG
group of Hong Kong acquired 25% stake at KSBL. In the year 2006, karvy entered into one of the hottest sector of
present time i.e. real estate through Karvy realty& services (India) ltd. hence, we can see now karvy being
established as the largest financial service provider of the country.

KARVY GROUP-
1- Karvy Consultants Limited
2- Karvy Stock broking Limited
4- Karvy Computer Shares Pvt. Ltd.
5- Karvy realty (India) Pvt. Ltd
6- Karvy globe services Ltd
7- Karvy data base management services
8- Karvy comrades Ltd
9- Karvy Consultants Limited

In 1982, a group of Hyderabad-based practicing chartered accountants started karvy

consultants limited with a capital of Rs. 1, 50,000 offering auditing and taxation services

initially. Later, it forayed into the registrar and share transfer activities and subsequently into

[13]
financial services. All along, karvy’s strong work ethic and professional background

leveraged with information technology enabled it to deliver quality to the individual.

A decade of commitment, professional integrity and vision helped karvy achieve a

leadership position in its field when it handled the largest no of issues ever handled in the

history of the Indian stock market in a year. Thereafter, karvy made inroads into a host of

capital market services, corporate and retail- which proved to be a sound business synergy.

Today, karvy has access to millions of Indian shareholders, besides companies, banks,

financial institutions and regulatory agencies. Over the past one and half decades, karvy has

evolved as a veritable link between industry, finance and people. In January 1998, karvy

became the first depository participants in Andhra Pradesh. An ISO 9002 company, karvy’s

commitment to quality and retail reach has made it an integrated financial services

company.

PRODUCT & SERVICES

KARVY is providing a wide range of services. Following are its main product & services:-

1. MUTUAL FUND SERVICE

2. PAN (Permanent Account Number)

3. DEMAT

4. E-TDS (Electronic Tax Depository Service)

[14]
5. STOCK BROKING

6. ON LINE TRADING

7. SHARE REGISTRAR

8. INSURANCE

9. MEDICAL TRANSCIPTION

10. ADVISORY SERVICES

11. INVESTMENT BANKING

12. DEPOSITORY SERVICES

13. REGISTRAR & INVESTOR SERVICES

14. PERSONAL FINANCE

HISTORY OF KARVY

The birth of Karvy was on a modest scale in 1981. It began with the vision and enterprise of

a small group of practicing Chartered Accountants who founded the flagship company …

Karvy Consultants Limited. We started with consulting and financial accounting automation,

and carved inroads into the field of registry and share accounting by 1985. Since then, we

have utilized our experience and superlative expertise to go from strength to strength…to

better our services, to provide new ones, to innovate, diversify and in the process, evolved

Karvy as one of India’s premier integrated financial service enterprise.

[15]
Thus over the last 20 years Karvy has traveled the success route, towards building a

reputation as an integrated financial services provider, offering a wide spectrum of services.

And we have made this journey by taking the route of quality service, path breaking

innovations in service, versatility in service and finally…totality in service.

Our highly qualified manpower, cutting-edge technology, comprehensive infrastructure and

total customer-focus has secured for us the position of an emerging financial services giant

enjoying the confidence and support of an enviable clientele across diverse fields in the

financial world. Our values and vision of attaining total competence in our servicing has

served as the building block for creating a great financial enterprise, which stands solid on

our fortresses of financial strength - our various companies.

With the experience of years of holistic financial servicing behind us and years of complete

expertise in the industry to look forward to, we have now emerged as a premier integrated

financial services provider.

And today, we can look with pride at the fruits of our mastery and experience –

comprehensive financial services that are competently segregated to service and manage a

diverse range of customer requirements.

VISION OF THE COMPANY

[16]
As per KARVY-

Our values and vision of attaining total competence in our servicing has served as the

building block for creating a great financial enterprise, which stands solid on our fortresses

of financial strength - our various companies.

QUALITY POLICY

[17]
To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, by

combining its human and technological resources, to provide superior quality financial

services. In the process, Karvy will strive to exceed Customer's expectations.

QUALITY OBJECTIVES:-

As per the Quality Policy, Karvy will:

 Build in-house processes that will ensure transparent and harmonious relationships

with its clients and investors to provide high quality of services.

 Establish a partner relationship with its investor service agents and vendors that will

help in keeping up its commitments to the customers.

 Provide high quality of work life for all its employees and equip them with adequate

knowledge & skills so as to respond to customer's needs.

 Continue to uphold the values of honesty & integrity and strive to establish

unparalleled standards in business ethics.

 New and innovative financial products and services to meet the changing needs of

investors and clients.

 Strive to be a reliable source of value-added financial products and services and

constantly guide the individuals and institutions in making a judicious choice of same.

 Strive to keep all stake-holders (shareholders, clients, investors, employees, suppliers

and regulatory authorities) proud and satisfied.

 Use state-of –the art information technology in developing new and innovative

financial products and services to meet the changing needs of investors and clients.

[18]
 ACHIEVEMENTS

1. Among the top 5 stock brokers in India (4% of NSE volumes)

2. India's No. 1 Registrar & Securities Transfer Agents

3. Among the to top 3 Depository Participants

4. Largest Network of Branches & Business Associates

5. ISO 9002 certified operations by DNV

6. Among top 10 Investment bankers

[19]
7. Largest Distributor of Financial Products

8. Adjudged as one of the top 50 IT uses in India by MIS Asia

9. Full Fledged IT driven operations

PERFORMANCE OF KARVY

During last few years karvy has performed very well. One can judge its performance in the

following points:-

KARVY is:

 Largest mobilize of funds as per PRIME DATABASE.

 First ISO-9002 Certified Registrar in India.

 A Category-I-Merchant banker.

 A Category-I-Registrar to Public Issues.

 Ranked as “The Most Admired Registrar” by MARG.

 Handled the largest-ever Public Issue.

 Handled over 600 Public Issues as Registrars.

[20]
  First Depository Participant from Andhra Pradesh.

Beside above following are some of the major issues which are managed by KARVY as

arrangers, which also help to understand the good performance of KARVY:-

Major issues handled as Registrars to Issues:

 3M India Limited

 ABB limited

 Asian Hotels Ltd.

 Atlas Cop co India Ltd.

 Bank of Baroda

 Bharat Earth Movers Ltd.

 Bharti Airtel Limited

 Biocon Limited

 ICICI bank

 Infosys Technologies

 Jet Airways (India) Ltd.

 Maruti Udyog Ltd.

[21]
  NTPC Ltd.

 PVR Ltd.

 Reliance Petrolaim Limited

 Suzlon Energy Ltd.

 UCO Bank

 UTI Bank

 YES Bank

Some latest issues-

 Atlanta Limited

 GMR Infrastructure Ltd.

 GVK Power & Infrastructure Ltd.

 HOV Services Ltd.

 KEW Industries Ltd.

Karvy has also issued some bonds:-

 IDBI Flexi Bonds-2 (FDDB)

 IDBI Flexi Bonds-2A (Floating Rate)

 IDBI Flexi Bonds-3 (FDB)

 IDBI Flexi Bonds-4 (IFD)

 IDBI Flexi Bonds-5 (BGI)

[22]
  IDBI Flexi Bonds-7 (GIB)

 IDBI Flexi Bonds-7 (RMB)

KARVY GROUP COMPANIES

Organization structure of the unit (DELHI) in which the training is done

Different departments

Branch Manager (Work as a

head of branch and all
departments)

MFS (Work as a registrar of DP (Work as a

UTI & RELIANCE etc.) depository participant)

INSURANCE (Work as KSBL (Work as a stock

a insurance services) broking)
[23]
 ACCOUNT Sec. (Work as a TIN (Work as a PAN, TAN, and
finance record maintain) E-TDS Services)

COMPANY BOARD OF DIRECTOR

Mr. C PARATHSARTHY
(CHAIRMAN &
MANAGING DIRECTOR)

Mr. MARK DAVIS Mr. WILLIAN STUART

(DIRECTOR) CROSHY(CHAIRMAN OF
KARVY COMPUTER SHARE)

Mr. M YUGANDHAR Mr. PRASAD V POTTURI

(MANAGING DIRECTOR) (DIRECTOR)

Mr. M S RAMAKRISHNA Mr. CHANDRA BALARAMAN

(DIRECTOR) (DIRECTOR)

[24]
 RIS AGM Staff
VP
RIS
RII RII Sr.Mgr. Staff

AGM
Oper. Staff

AGM
(System) Staff
VP
MFD
DGM
(Operation) AGM Staff

VP DP MGR Staff

DP
GM(1) Staff
RIL RIL
MD GM(2) AGM Staff
Tech

Tech AGM Staff

CMD

M.T. Sr. Staff

Advisor Mgr
Trainin .
g. &
develop Corp. Staff
ment Quality

Training Staff

[25]
VP Co.
VP
VPHRFin & Staff
Secretary DGM
AGM
Sr. Mgr.
Adm. Staff Staff
 ORGANIZATION HIERARCHY
OF KARVY CONSULTANTS

KARVY CONSULTANTS LIMITED

As the flagship company of the Karvy Group, Karvy Consultants Limited has always

remained at the helm of organizational affairs, pioneering business policies, work ethic and

channels of progress.

Having emerged as a leader in the registry business, the first of the businesses that we

ventured into, we have now transferred this business into a joint venture with Computer

share Limited of Australia, the world’s largest registrar. With the advent of depositories in

the Indian capital market and the relationships that we have created in the registry

business, we believe that we were best positioned to venture into this activity as a

Depository Participant. We were one of the early entrants registered as Depository

Participant with NSDL (National Securities Depository Limited), the first Depository in the

country and then with CDSL (Central Depository Services Limited). Today, we service over 6

lakhs customer accounts in this business spread across over 250 cities/towns in India and

are ranked amongst the largest Depository Participants in the country. With a growing

secondary market presence, we have transferred this business to Karvy Stock Broking

Limited (KSBL), our associate and a member of NSE, BSE and HSE.

[26]
 KARVY COMTRADE LIMITED

At Karvy Commodities, we are focused on taking commodities trading to new dimensions of

reliability and profitability. We have made commodities trading, an essentially age-old

practice, into a sophisticated and scientific investment option.

Here we enable trade in all goods and products of agricultural and mineral origin that include

lucrative commodities like gold and silver and popular items like oil, pulses and cotton

through a well-systematized trading platform. Our technological and infrastructural strengths

and especially our street-smart skills make us an ideal broker. Our service matrix is holistic

with a gamut of advantages, the first and foremost being our legacy of human resources,

technology and infrastructure that comes from being part of the Karvy Group.

Our wide national network, spanning the length and breadth of India, further supports these

advantages. Regular trading workshops and seminars are conducted to hone trading

strategies to perfection. Every move made is a calculated one, based on reliable research

that is converted into valuable information through daily, weekly and monthly newsletters,

calls and intraday alerts. Further, personalized service is provided here by a dedicated team

committed to giving hassle-free service while the brokerage rates offered are extremely

competitive.

KARVY COMPUTERSHARE PVT. LIMITED

We have traversed wide spaces to tie up with the world’s largest transfer agent, the leading

Australian company, Computer share Limited. The company that services more than 75

[27]
million shareholders across 7000 corporate clients and makes its presence felt in over 12

countries across 5 continents has entered into a 50-50 joint venture with us. With our

management team completely transferred to this new entity, we will aim to enrich the

financial services industry than before. The future holds new arenas of client servicing and

contemporary and relevant technologies as we are geared to deliver better value and foster

bigger investments in the business. The worldwide network of Computer share will hold us in

good stead as we expect to adopt international standards in addition to leveraging the best

of technologies from around the world.

Issue Registry

In our voyage towards becoming the largest transaction-processing house in the Indian

Corporate segment, we have mobilized funds for numerous corporate, Karvy has emerged as

the largest transaction-processing house for the Indian Corporate sector. With an experience

of handling over 700 issues, Karvy today, has the ability to execute voluminous transactions

and hard-core expertise in technology applications have gained us the No.1 slot in the

business. Karvy is the first Registry Company to receive ISO 9002 certification in India that

stands testimony to its stature.

KARVY INSURANCE BROKING PRIVATE LIMITED

At Karvy Insurance Broking Pvt. Ltd., we provide both life and non-life insurance products to

retail individuals, high net-worth clients and corporate. With the opening up of the insurance

sector and with a large number of private players in the business, we are in a position to

provide tailor made policies for different segments of customers. In our journey to emerge

as a personal finance advisor, we will be better positioned to leverage our relationships with

[28]
the product providers and place the requirements of our customers appropriately with the

product providers. With Indian markets seeing a sea change, both in terms of investment

pattern and attitude of investors, insurance is no more seen as only a tax saving product but

also as an investment product. By setting up a separate entity, we would be positioned to

provide the best of the products available in this business to our customers.

KARVY STOCK BROKING LIMITED

Member-

 National Stock Exchange (NSE),

 Bombay Stock Exchange (BSE), and

 Hyderabad Stock Exchange (HSE)

Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely

towards attaining diverse goals of the customer through varied services. Creating a plethora

of opportunities for the customer by opening up investment vistas backed by research based

advisory services. Helping the customer create waves in his portfolio and empowering the

investor completely is the ultimate goal.

Depository Participants

The onset of the technology revolution in financial services Industry saw the emergence of

Karvy as an electronic custodian registered with National Securities Depository Ltd (NSDL)

[29]
and Central Securities Depository Ltd (CSDL) in 1998. Karvy set standards enabling further

comfort to the investor by promoting paperless trading across the country and emerged as

the top 3 Depository Participants in the country in terms of customer serviced.

Offering a wide trading platform with a dual membership at both NSDL and CDSL, we are a

powerful medium for trading and settlement of dematerialized shares. We have established

live DPMs, Internet access to accounts and an easier transaction process in order to offer

more convenience to individual and corporate investors. A team of professional and the

latest technological expertise allocated exclusively to our demat division including

technological enhancements like SPEED-e; make our response time quick and our delivery

impeccable. A wide national network makes our efficiencies accessible to all. To further tap

the immense growth potential in the capital markets we enhanced the scope of our retail

brand, Karvy – the Finapolis, thereby providing planning and advisory services to the mass

affluent. Here we understand the customer needs and lifestyle in the context of present

earnings and provide adequate advisory services that will necessarily help in creating

wealth. Judicious planning that is customized to meet the future needs of the customer

deliver a service that is exemplary. The investment planning for each customer is done with

an unbiased attitude so that the service is truly customized.

Our monthly magazine, Finapolis, provides up-dated market information on market trends,

investment options, opinions etc.

Thus empowering the investor to base every financial move on ratio thought and prudent

analysis and embark on the path to wealth creation.

[30]
 Deals in Buying and Selling equity shares and debentures on the National Stock Exchange (NSE), the Hyderabad
Stock Exchange (HSE) and the Over-The counter Exchange of India (OTCEI)

KARVY INVESTORS SERVICES LIMITED

Recognized as a leading merchant banker in the country, we are registered with SEBI as a

Category I merchant banker. This reputation was built by capitalizing on opportunities in

corporate consolidations, mergers and acquisitions and corporate restructuring, which have

earned us the reputation of a merchant banker. Raising resources for corporate or

Government Undertaking successfully over the past two decades have given us the

confidence to re-new our focus in this sector.Our quality professional team and our work-

oriented dedication have propelled us to offer value-added corporate financial services and

act as a professional navigator for long term growth of our clients, who include leading

corporate, State Governments, foreign institutional investors, public and private sector

companies and banks, in Indian and global markets.

We have also emerged as a trailblazer in the arena of relationships, both at the customer

and trade. Our team of committed industry specialists, having extensive experience in

capital markets, further nurtures this relationship.Our financial advice and assistance in

restructuring, divestitures, acquisitions, de-mergers, spin-offs, joint ventures, privatization

and takeover defense mechanisms have elevated our relationship with the client to one

based on unshakable trust and confidence.

Deals in Issue management, Investment Banking and Merchant Banking

529, Road No.4Street No.1, Banjara hills, Hyderabad-500034

E-mail-kisl@karvy.com

[31]
 KARVY GLOBAL SERVICES LIMITED

The specialist Business Process Outsourcing unit of the Karvy Group. The legacy of expertise

and experience in financial services of the Karvy Group serves us well as we enter the global

arena with the confidence of being able to deliver and deliver well.

Here we offer several delivery models on the understanding that business needs are unique

and therefore only a customized service could possibly fit the bill.

[32]
 ALLIANCES OF KARVY

Karvy Computer share Private Limited is a 50:50 joint venture of Karvy Consultants Limited

and Computer share Limited, Australia. Computer share Limited is world's largest -- and

only global -- share registry, and a leading financial market services provider to the global

securities industry.

The joint venture with Computer share, reckoned as the largest registrar in the world,

servicing over 60 million shareholder accounts for over 7,000 corporations across eleven

countries spread across five continents. Computer share manages more than 70 million

shareholder accounts for over 13,000 corporations around the world.

Karvy Computer share Private Limited, today, is India's largest Registrar and Share Transfer

Agent servicing over 300 corporate and mutual funds and 16 million investors.

[33]
 KARVY GLOBAL SERVICES
KARVY COMPUTERSHARE

DEBT MARKET SERVICES

PERSONAL FINANCE ADVISORY SERVICES

IT ENABLED SERVICES

DEPOSITORY SERVICES

CORPORATE FINANCE SERVICES

FINANCIAL PRODUCTS DISTRIBUTION SERVICES

STOCK BROKING SERVICE

CORPORATE REGISTRY SERVICE

INCEPTION

COMPETITORS PROFILE

[34]
In todays time of cut throat competition no it very difficult for an organization to survive

unless he keeps an eye over the activity of competitors. KARVY is having a lot many

competitors in India. Following are some of its main competitors:-

1. INDIABULLS
Indiabulls is India’s leading retail financial services company with 414 locations spread

across 124 cities. While our size and strong balance sheet allow us to provide you with

varied products and services at very attractive prices, our over 5000 relationship managers

are dedicated to serving your unique needs. India bulls serves the financial needs of more

than 3, 00,000 customers with its wide range of financial services & products.

Indiabulls is lead by a highly regarded management team that has invested crores of rupees

into a world class infrastructure that provides our clients with real-time service & 24/7

access to all information and products. Our flagship India bulls’ professional network offers

real-time prices, detailed data and news; intelligent analytics, and electronic trading

capabilities, right at your finger-tips. It is listed in NSE, BSE, Luxembourg Stock Exchange,

and London Stock Exchange.

Indiabulls offer a full range of financial services and products ranging from equities to

insurance to enhance your wealth and hence, achieve your financial goals. It includes

derivatives (futures & options), securities, trading, depository services, research & advisory

services, loan against securities, mortgage etc.

[35]
Indiabulls client relationship managers are available to help people with financial planning

and investment needs. To provide the highest possible quality of service, India bulls provide

full access to all our products and services through multi-channels.

Indiabulls is ranked 82nd in the list of most valuable companies in India in BT 500. Market

capitalization of India bulls is around 800 million $ & conciliated net worth of the company is

around 500 million $.

2. MOTILAL OSWAL SECURITIES LTD.

Motilal Oswal Securities Ltd (MOSt) is one of the leading equity research and broking houses

of India. It is known for its strong belief in value-investing ideas, which forms the crore of its

investment philosophy. MOSt provides end-to-end equity solutions to institutional and

individual investors.The company was founded in 1987 as a small sub-broking unit, with just

2 people running the show. In a recent media report that MOSt were rated as one of the top

10 brokers in terms of business transacted for FIIs. The retail business unit provides equity

investment solution to more than 1, 61,000 investors through 1017 outlets spanning 375

[36]
cities & 24 states.MOSt has a 2,000 member research team, which is engaged round the

clock in analyzing the Indian economy and corporate sectors to identify equity investment

ideas. More popularly known by its acronym” Inquire”, the research team staunchly practices

value-investing philosophy and advises investors to take a mature and long-term view of

equity investment. Consistent delivery of high quality advice on individual stocks, sector

trends and investment strategy has established inquire as a competent and reliable research

unit amongst leading Indian as well as International investors. Asia Money Broker’s Poll 2005

has ranked MOSt as one of the best Indian broking firm, for research, for the third time

since 2000 & 2002.The MOSt sales team, comprising top equity professional, translates the

research findings into actionable advice for you, based on your specific needs. Sophisticated

computerized tools are used to understand your investment profile and objectives, which

ensures proactive and timely service.

MOSt has distinguished itself by its close relationship with some of the leading Foreign and

Domestic Institutional Investors like Morgan Stanley, Battery March, EMIC, UTI, LIC,

Alliance, ICICI Prudential, HDFC MF, HSBC MF, Birla MF etc.

3. KOTAK

[37]
Kotak Mahindra is one of India's leading financial institutions, offering complete financial

solutions that encompass every sphere of life. From commercial banking, to stock broking,

to mutual funds, to life insurance, to investment banking, the group caters to the financial

needs of individuals and corporate. Kotak Securities Ltd. is India's leading stock broking

house with a market share of around 8.5 % as on 31st March. Kotak Securities Ltd. has

been the largest in IPO distribution. Kotak Securities has 195 branches servicing more than

2, 20,000 customers and coverage of 231 Cities. Kotaksecurities.com, the online division of

Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual

Fund Investments.

Kotak Securities Limited manages assets over 2500 crores of Assets under Management

(AUM) .The portfolio Management Services provide top class service, catering to the high

end of the market. Portfolio Management from Kotak Securities comes as an answer to those

who would like to grow exponentially on the crest of the stock market, with the backing of

an expert.

As on June 30, 2009, the group has a net worth of over Rs.2, 840 crore, and the AUM across

the group is around 182.3 billion and employs over 7,800 employees in its various

businesses. With a presence in 264 cities in India and offices in New York, London, Dubai

and Mauritius, it services a customer base of over 1.6 million.

The group specializes in offering top class financial services, catering to every segment of

the industry. The various group companies include:-Kotak Mahindra Capital Company Ltd.,

Kotak Mahindra Securities Ltd., Kotak Mahindra Investments Ltd.

[38]
4. SHAREKHAN
Sharekhan is India's leading retail financial services company with We have over 250 share

shops across 115 cities in India. While our size and strong balance sheet allow us to provide

you with varied products and services at very attractive prices, our over 750 Client

Relationship Managers are dedicated to serving your unique needs.

Sharekhan is lead by a highly regarded management team that has invested crores of

rupees into a world class Infrastructure that provides our clients with real-time service &

24/7 access to all information and products. Our flagship Share khan Professional Network

offers real-time prices, detailed data and news, intelligent analytics, and electronic trading

capabilities, right at your finger-tips. This powerful technology complemented by our

knowledgeable and customer focused Relationship Managers. We are creating a world of

Smart Investor Sharekhan offers a full range of financial services and products ranging from

Equities to Derivatives enhance your wealth and hence, achieve your financial goals.

Share khan Client Relationship Managers are available to you to help with your financial

planning and investment needs. To provide the highest possible quality of service, Share

khan provides full access to all our products and services through multi-channels.

[39]
Services provided by the SHAREKHAN:--

1. Equities & Derivatives: - Comprehensive services for independent investors,

active traders & Non-Resident Indians.

2. Share khan equity analysis: - Premium research on 401+ companies updated daily.

3. Depository Services: - Value added services for seamless delivery.

MUTUAL FUND

I HAVE SEEN MANY ADVERTISEMENTS FOR MUTUAL FUNDS.WHAT ARE THEY? CAN I
INVEST IN MUTUAL FUNDS?

We have all heard this term somewhere, especially in advertisements, through those who

closely follow the share market, or even somewhere in the newspaper, mentioned in the

depths of articles on investment. Mutual funds essentially collect money from many

investors, which are then invested by professional managers. These investments could be in

instruments such as shares or bonds. The investor participates in the invested instruments’

gain and losses in an amount proportionate to his/her investment. You must take up mutual

funds as a serious investment option as they are basically formed to cater to individuals like

you and me.

[40]
A mutual fund is a trust that pools the savings of a number of investors who share a

common financial goal. The money thus collected is invested by the fund manager in

different types of securities depending upon the objective of the scheme. These could range

from shares to debentures to money market instruments.

The income earned through these investments and the capital appreciation realized by the

scheme is shared by its unit holders in proportion to the number of units owned by them

(pro rata).

Thus a mutual fund is the most suitable investment for the common man as it offers an

opportunity to invest in a diversified, professionally managed portfolio at a relatively low

cost. Anybody with an investible surplus of as little as a few thousand rupees can invest in

mutual funds. Each mutual fund scheme has a defined investment objective and strategy.

Mutual fund operations flow chart

The flow chart below describes broadly the working of a mutual fund:

INVESTORS MUTUAL
POOL THERE MONRY FUND

PASSED BACK TO INVEST IN

SHARES,BON
RETURNS GENERATE RETURN

DS,OTHER
SECURITIES

[41]
HOW WILL I BENEFIT BY INVESTING IN MUTUAL FUND?

The benefits are plenty, and some of them are….

Professional management

Fund managers, people who are highly qualified in the area of investment and have a

thorough knowledge of the capital market manage mutual funds.

Diversification and lowered risks

Sine a mutual funds is a trust that pools the savings of a number of investors sharing a

common financial goal, the associated risk are greatly reduced. This is also because a fund

will invest your money in different types of instruments like shares and bonds. Hence, loss in

one sphere will not greatly affect your overall investment status.

Low costs

When compared to direct investments in the capital market, mutual funds cost less. This is

due savings in brokerage costs, demat costs, depository costs, etc.

Liquidity

Investments in mutual funds are quite liquid and hence can be redeemed at the net assets

value (NAV)-related price on any working day.

[42]
Transparency

All that you invest in a scheme is made known to you are periodically informed about all the

updates and changes taking place.

Flexibility

Mutual funds offer flexibility in their options and schemes to match individual needs. Also,

with features like regular withdrawal plans and systematic investment plans, you can

withdraw or invest funds according to your needs and convenience.

Choice of schemes

Mutual funds offer a vast variety of well-designed schemes and options that you can choose

from depending on your risk appetite.

Tax benefits

Mutual funds offer a host of tax benefits. Dividend income received from investing in equity

and debt schemes of a mutual fund is tax free in the hands of the investors.

Regulation

Mutual funds are regulated by SEBI (Securities Exchange Board of India) and function within

provisions and regulations that protect the interests of investors. SEBI acts as a watchdog to

ensure fair market practices.

WHAT IS THE STRUCTURE OF THE MUTUAL FUND INDUSTRY?

[43]
There are many entities involved in a mutual fund. This is what makes it safer than other

investment avenues. Everyone is accountable for their part in the fund structure.

CUSTODIAN
MUTUAL FUND TRANSFER AGENT
SPONSOR
TRUSTEE
AMC

DISTRIBUTORS/
AGENTS

INVESTORS

FIG.2: Orgnisational set up of a mutual fund

Asset management company (AMC): Approved by SEBI, it manages the funds by

making investments in the various types of instruments and securities.

Trustees: hold the mutual fund’s property for the benefit of unit holders. They are an

independent authority set up under the aegis of SEBI.

[44]
Custodian: registered with SEBI, it holds the securities of various schemes of the fund in

the custody.

Transfer agents: also known as registrars, transfers the units to the unit holders’

accounts.

Distributors/agents: sell units on behalf of funds and are generally appointed by the

AMC.

BEFORE WE MOVE ON, LET’S UNDERSTAND SOME BASIC

TERMINOLOGIES USED IN MUTUAL FUNDS

WHAT IS Net Assets Value?

Net Assets Value (NAV) is the market value of the assets of the scheme minus its liabilities

divided by the units outstanding. Simply put, if the fund is dissolved or liquidated, by selling

off all the assets in the fund, this is the amount that the value of your investments and to

determine the price of per unit for buying or selling.

OPEN-ENDED FUND

An open-ended fund or scheme is one that is available for subscription and repurchase on a

continuous basis. These schemes do not have a fixed maturity period. The key feature of

open-end schemes is liquidity, as investors can buy and sell on an ongoing basis. Most

mutual funds’ schemes are open-ended.

[45]
CLOSE-ENDED FUND

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is

open for subscription only during a specified period at the time of launch. Generally,

investors can invest in the scheme at the time of New Fund Offer (NFO) and thereafter they

can buy or sell the units of the scheme on the exchange where the units maybe listed.

Occasionally, the mutual fund provides a re-purchase option to investors for a specified

period.

PORTFOLIO

Combined holdings of many kinds of financial securities like shares, debentures and bonds.

The objective is risk diversification and maximization of gain of group of assets.

CORPUS

The total amount of money that a fund has at any point of time.

UNIT

A unit represents an investor’s share in the assets of the scheme she/he invested.

LOAD

A load is a one-time sales charge paid by an investor while buying or selling units of a

scheme. An entry load is charged at the time of purchase of units and an exit load is

charged at the time of redemption.

EXPENSES RATIO

Expense ratio is defined as the ratio of total expenses to the net assets of the fund. It is the

annual percentage of the fund’s assets that is paid out in expenses. Expenses include

[46]
management fees and all the fees associated with the fund daily operations. The ratio is

listed in a fund’s offer document. The expense allow for a fund is a percentage of the weekly

average net assets outstanding.

Equity schemes up to 2.5%

Debt schemes up to 2.25%

THE EXPENSE RATIO WILL TELL YOU HOW EFFICIENTLY YOU’RE MONEY

THE DIFFERENT KINDS OF MUTUAL FUND

Mutual fund schemes can be broadly classified as equity schemes and debt schemes.

Mutual Who Objective Investment Risk Ideal

Fund Should Portfolio Investmen
Type Invest? t Horizon

Diversified Moderate High growth Equity shares High 1-3 years

Equity Funds and
aggressive
investors
Sector Funds aggressive High growth Equity shares Very 1-3 years
investors high
Index Funds Moderate To generate Portfolio index Return of 1-3 years
investors returns like BSE NAV,
which are Sensex, Nifty, vary with
similar to etc. index
the returns performa
of the nce
respective
index
Equity Linked Moderate Long-term Equity shares High 1-3 years
Saving and growth with
Scheme(ELSS aggressive tax saving
) investors
Balance Funds Moderate Growth and Balanced ratio Capital Over 2 years
and regular of equity and market
aggressive income debt fund to risk and
investors ensure higher interest

[47]
 returns at rate risk
lower risk
Bond Funds Salaried Regular Predominantly Credit Over 9-
and income debentures, risk and 12 months
conservativ government interest
e investors securities, rate risk
corporate
bonds
Gilt Funds Salaried Security and Government Interest Over 12
and income securities rate risk months
conservativ
e investors
Short-Term Investors Liquidity Call money, Little 3weeks- 3
Funds with and commercial interest months
surplus moderate papers, rate risk
short-term income treasury bills,
funds short-term G-
securities
Liquid Funds Investors Liquidity + Treasury bills, Negligibl 2 days-
who park moderate certificate of e risk 3 weeks
their funds income + deposits,
in current preservation commercial
account or of capital papers,
short-term securities, call
bank fixed money
deposits

TABLE 1: TYPES OF MUTUAL FUNDS

Emerging funds-

Gold funds

Indians are the largest investors in gold and its various forms. Historically, gold has been a

preferred choice of investment as a hedge against inflation or as a means of security in bad

times. To benefit from this inherent quality of gold, you may soon have a gold fund.

Real estate funds

With continuous migration of people from rural areas to towns, increasing population, rising

income levels and the consequent increase in demand for property, real estate prices are

[48]
bound to increase. This is why real estate has also been a preferred investment alternative

for the Indian investor. To tap this potential, real estate funds may soon be made available.

List of Mutual Fund Clients

1 Alliance Mutual Fund

2 Birla Mutual Fund
3 Bank of Baroda Mutual Fund
4 Can Bank Mutual Fund
5 Chola Mutual Fund
6 Deutsche Mutual Fund
7 DSP Merrill Lynch Mutual Fund
8 Franklin Templeton Investments
9 GIC Mutual Fund
10 HDFC Mutual Fund
11 HSBC Mutual Fund
12 IL & FS Mutual Fund
13 JM Mutual Fund
14 Kotak Mutual Fund
15 LIC Mutual Fund
16 Punjab National Bank Mutual Fund
17 Prudential ICICI Mutual Fund
18 Principal Mutual Fund
19 Reliance Mutual Fund
20 State Bank of India Mutual Fund
21 Standard Chartered Mutual Fund
22 Sundaram Mutual Fund
23 SUN F&C Mutual Fund

[49]
24 Tata Mutual Fund

SWOT ANALYSIS

The overall evaluation of the company’s strength, weakness, opportunity and threat is called

SWOT analysis. Key tool in the strategic process can also apply to career planning. A SWOT

analysis focuses on the internal and external environments, examining strengths and

weaknesses in the internal environment and opportunities and threats in the external

environment.

[50]
 To construct your own SWOT analysis to set a course for your career planning, examining

your current situation.

 What are your strengths and weakness?

 How can you capitalize on your strengths and overcome your weakness?

 What are the external opportunities and threats in your chosen career field.

STRENGTH:

 Strong brand image.

 .Wide range of services provided.

 Providing better services than its competitors

 Wide distribution network & strong work force.

 Company is providing various schemes to promote its products.

WEAKNESS:

 Lack of advertising

 Lack of customer feedback

 Geographical coverage in rural areas is remained untapped by the bank.

 Loosing some of its customer, as they are not satisfied

OPPORTUNITIES:

 It can capture more market share.

 It may enter in new fields.

 Can create wider range of products

[51]
  Can expand its network to other sectors of country where KARVY has not explored his

market.

THREATS:

 Competition from strong players at the upper end such as INDIA BULL and other small

and big companies

 Entrance of new competitors as KOTAK, Reliance etc.

 The company has also some threat form government organizations.

 Company may have some threat from the change in policies made by government.

 Reliance has also enter his personal demat services; earlier Reliance was the major

account holder in karvy, now it has been shifted.

 SEBI also restrict the business of newly account opening. Now karvy can do business

with his existing accountholders.

[52]
[53]
This study will help to make the new strategies and policies of the company.

Scope of the study is as follows:

1 A comparative study of the various securities investors and the marketing strategy,

which will help to compare the service and the qualities with others.

2 Investor’s earlier expectation, what they want from the Karvy Consultants Ltd. and

how much are they satisfied with the service, being provided by the company.

3 Consumer’s perception towards the brand of Karvy Consultants Ltd. Is it positive or

is it negative. And also find out the reasons behind changing the attitude of the

customers.

4 Various reasons for bad services provided by the company and others non

fulfillment comment.

5 By this project Report Company can easily find out the targeted persons in terms

of demography.

6 New ideas from the customers that may be useful for the company and to find out the

response and network position used by Karvy Consultants Ltd.

[54]
 RESEARCH METHODOLOGY
Research methodology is used to search answer of the research questions. An attempt has

been made to describe the nature of people of DELHI city, selected for the study of samples,

data collection and technology used to analyze and present the data required.

Methodology in common parlance refers to a search for knowledge. The advanced learner’s

dictionary of current English lays down the meaning of research as an “A careful

investigation or inquiry especially through search for new facts in any branch of knowledge”.

[55]
Some people consider research as a movement, movements from known to the unknown. It

is actually a voyage of discovery. We all process the vital instinct of inquisitiveness for, when

the unknown confronts us, we wonder and our inquisitiveness makes us probe and attain full

and fuller understanding of the unknown. This inquisitiveness is the mother of all the

knowledge and the method, which man employs for obtaining the knowledge of whatever

the unknown, can be termed as research.

Methodology is way to systematically solve the research problem. It may be understood as a

science of studying how research is done scientifically.

Learning more about the consumer and about marketing is the heart of research

methodology.

RESEARCH PROCESS

PROBLEM FORMULATION

RESEARCH DESIGN

SAMPLE DESIGN

DATA COLLECTION TECHNIQUE

[56]
 FIELD WORK

ANALYSIS & INTERPRETATION

RESEARCH REPORT

In the planning of the project and survey, the entire schedule of work was decided into

thirteen steps, as follows:-

1. Defining the objective.

2. Defining the population.

3. Frame the sample unit.

4. Data to be collected.

5. Questionnaire and schedule

6. Method of collecting information.

7. Non-respondent classification.

8. Selection of proper sampling design.

9. Organization of the project.

10. Execution of the project.

11. Summary and analysis.

[57]
12. Information gained for the further survey.

13. Preparation of the report.

Let us understand above all 13 steps in detail:

1. DEFINING THE OBJECTIVE:-

The main objective is to find out the investment pattern of people in mutual fund. This

report is conducted to depict the behavior the people in making investment especially in

mutual fund.

2. DEFINING THE POPULATION (Sample Size 50):-

Population refers to the total of items about which information is desired. Here in this project

I have considered finite population means we are taking here one single individual as single

unit which is fixed to filling of 50 questionnaires, each separately by single individual.

3. FRAME THE SAMPLE UNIT:-

The elementary units or the group or cluster of such units may form the basis of sampling

process in which case they are called as sampling units-a list containing all such sampling

frame consists of a list items from which the sample is to be drawn. It is often impossible to

draw a sample directly from population.

Here in case of this project I simply locate areas and conduct a survey by taking the

information in form of questionnaire. So while conducting this project, an area is taken as a

unit and done survey in many area of the city of Ghaziabad.

[58]
4. DATA TO BE COLLECTED:-

There are several ways to collect the data which differ considerably in context of money,

cost, time and other resources.

In this project the data which is required should give details about the behavior of people in

making.

Investment in mutual fund, also the various risk factors involved in mutual fund, so in this

project we require the data which is essential to make a comparison in between these two

groups. The data should be very relevant.

5. QUESTIONNAIRE AND SCHEDULE:-

To develop an effective questionnaire following points should be kept in mind-

(A) Keep in view the problem to be studied.

(B) Questions should be appropriate and simple and must be constructed with a view to

their forming a logical part of a well thought out tabulation plan. It is necessary to put open

as well as closed ended questions.

(C) Proper sequencing of the questions.

(D) Examined properly and if and error found, it should be removed.

(E) Pre-testing of questionnaire is necessary etc.

6. METHOD OF COLLECTING INFORMATION:-

Normally there are two method of collecting the data:

 Primary data

[59]
  Secondary data

In this project we require data, which is necessary to obtain result and secondary data. In

this case we have collected information through direct communication with respondents in

one form or other or through personal interviews and filling the questionnaire.

7. NON-RESPONDENT CLASSIFICATION:-

It is very necessary to classify the respondents from the sample size who don’t given proper

reply while conducting the research. The reason is that this may create a systematic bias.

8. SELECTION OF PROPER SAMPLING DESIGN:-

A sample design is a definite plan for obtaining a sample from a given population.

Here in this the sample size is of 50. Sample design may as well lay down the no. of items to

be included in the sample.

9. ORGANIZATION OF THE PROJECT:-

Fieldwork is done in this project individually with no biasness. The field work comprises of

filling of questionnaire by different sector individuals.

10. EXECUTION OF THE PROJECT:-

Proper execution of project is important. Steps should be taken to ensure that the survey is

under statistical control so that the collected information is in accordance with the pre-

defined standard of accuracy.

If some of the respondents do not cooperate, some suitable method should be designed to

tackle them.

11. SUMMARY AND ANALYSIS:-

[60]
Once the data is collected the next task is to analyze them. The raw data should be

classified into some purposeful usable categories as tabulation, coding etc.Analysis work

after tabulation is generally based on the computation of various percentages; coefficients

etc by applying various well defined statistical formulae. Here in this report it is found that

the investment pattern of people in mutual fund is not satisfactory due to lack of knowledge

and also the risk involved in mutual fund.

12. INFORMATION GAINED FOR THE FURTHER SURVEY:-

The information gained for further survey is summarized as under:-

 Very less no. of people are interested to invest in mutual fund.

 People prefer other options available of investing their money rather than mutual fund.
 Risk factor in mutual fund is high.

 Many people have shown their willingness to invest in mutual fund.

13. PREPARATION OF THE REPORT:-

Finally report is prepared according to work done. Following point must be kept in mind in
this regard:-

1. The layout

2. Report should be concise and simple.

3. Proper charts & diagrams etc must be used if it is necessary.

4. Various limitations in report should be clearly mentioned.

[61]
1. WHAT PERCENTAGE OF MONEY DO YOU SAVE/INVEST:-

(a) 10%-20%:15 (b) 20%-30%:20

(c) 30%-40% :8 (d) Above 40%:7

[62]
 PERCENTAGE OF INCOME SAVED/INVEST

14%
30%

16%

40%

10% TO 20% 20% TO 30%

30% TO 40% ABOVE 40%

GRAPH-1

2. WHERE DO YOU INVEST YOUR MONEY:-

(a) Shares (b) Debentures (c) Bank Deposits

(d) Mutual Fund (e) Insurance (f) Govt. sec. NSE, PPF etc.

(f) Other……………………………

[63]
 GRAPH-2

3. DO YOU KNOW ABOUT MUTUAL FUND?

(a) YES

(b) NO

(c) NO REPLY

[64]
 GRAPH-3

4. DO YOU INVEST IN MUTUAL FUND?

(a) YES

(b) NO

(c) NO REPLY

[65]
 GRAPH-4

5. WHICH TYPE OF MUTUAL FUND DOES YOU PERFER:-

(a) Open Ended (b) Close Ended (c) Growth/ Equity Fund

(d) Balanced Fund (e) Tax saving Fund (f) Sector Specific Fund

(g) Assured Return Scheme (h) Other……………………………….

[66]
 GRAPH-5

6. WHAT IS THE EXPECTED RETURN ON YOUR INVESTMENT?

(a) 4%-6%

(b) 6%-8%

(c) Above 8%..................

[67]
 GRAPH-6

7. WHAT IS THE LOCK IN PERIOD, YOU WOULD PREFER FOR YOUR MONEY IN
MONEY INSTRUMENTS? ………………………… (No. of yrs.)

 SHORT TERM

 LONG TERM

 OTHER

[68]
 GRAPH-7

Also there was another category of reply from the people which is clear from the following

pie chart

8. WHICH IS THE SAFEST INVESTMENT IN YOUR VIEW?

GIVE REASON?

[69]
 GRAPH-8

9. WHAT INFLUENCE YOU TO INVEST IN MUTUAL FUND?

(a) High Return

(b) Friend/ Relative

(c) Tax Benefits

[70]
(d) Marketing Condition

(e) Other………………………..

GRAPH-9

10. IF YOU HAVE INVESTED MONEY IN MUTUAL FUND TILL DATE WHAT IS THE
AMOUNT?

[71]
 AMOUNT OF MONEY INVESTED IN MUTUAL FUND

12%
31%
19%

38%

UPTO 10,000 10,000 TO 20,000 20,000 TO 30,000 ABOVE 30,000

11. WHICH MEDIATOR SERVICE DO YOU TAKE FOR MAKING INVESTMENT IN

SHARES, MUTUAL FUNDS ETC.?

 MARKETING AGENT APPROACHING YOU

 FINANCIAL CONSULTANTS

 FRIENDS/ RELATIVES

 OTHERS………………………….

[72]
 GRAPH-11

12. WOULD YOU LIKE TO AVAIL THE SERVICES OF “KARVY”?

(a) YES

(b) NO

(c) NO REPLY

[73]
GRAPH--12

[74]
[75]
The aim of the research conducted was to find out the “investment pattern of people in

mutual fund”. All the due effort was made to find out the appropriate and confide results.

Following are the various findings of the research so conducted:

 Most of the people prefer to get highest return on their investment, viz.above 8%

 Most of the people save between 20-30% of their income.

 Most of the people prefer short-term investment between one to three years.

 Most of the people have regarded shares as the most risky investment.

 Most of the people invest their money in the banks and other government securities.

 Not much people know about mutual fund.

 Very less number of the people has invested in mutual fund.

 Most of the people prefer the open-ended and the tax saving type of mutual fund.

 Most of the people have invested in HDFC, RELIANCE ICICI, etc.mutual fund.

 Due to high return on mutual fund people invest in it.

 Very less no.of the people have shown their willingness to invest in mutual fund.

 Most of the people take service of financial and marketing agent services in investment

in various securities.

 Many of the people know about karvy.

 Very less people know about e-TDS.

 Most of the people possess a pan card.

 Very less no. of people know that KARVY is providing PAN, e-TDS, DEMAT services.

 Not much people are interested to take services of KARVY.

[76]
[77]
The main aim of this report is to find out the investment pattern of people in mutual fund.

Although the company has performed very well in past few years and as a result it holds a

very prime position in current market. But even through while conducting the research there

were many shortcomings on part of the company.

.Many people said that they were not aware of KARVY. So keeping in view all this points and

other factors which I personally felt while conducting the research, I would like to give

following suggestions to the company:-

 Company should do more advertising so that it can explore its market. There is also

need to introduce a good marketing campaign in terms of newspaper and T.V.

channels.

[78]
 Company should pay more attention on customer satisfaction.

 Karvy should try to minimize its posting errors.

 As the motive of the company is to earn more and more profit so the company should

attract more customers to invest through various schemes.

 More and more emphasis must be given on the research and development.

 Proper training programs must be conducting time and again so as to motivate sales

executives and to improve their performance. Most of the sales executive and

employee are not cleared the exam of NCFM yet, which is important for employee for

share market.

 Company should try to provide wider range of services.

 Company should retain its old customers. While conducting the survey respondents

were found who gave a negative reply for karvy by saying that they have to waste a

lot of time in karvy office so as to avoid grievances.

 Proper attention should be paid on the working of branch offices of KARVY.

 Company should come up with new schemes to attract its customers

 Company should keep a proper bird eye-view over the competitors activities like:

share khan, Kotak, India bulls, Motilal Oswal etc.

 KARVY should try to make people aware about the various services it provides. Viz. e-

TDS, PAN, Online trading, stock broking.

 In small cities company should emphasis on increasing franchises.

[79]
LIMITATIONS

[80]
1. The major limitation of the study was to get appointments from corporate and bank
executives. It took weeks to get appointments. Most of them refuse to give appointments
for such study purposes.

2. The sample size was more and wide distributed. So there was some difficulty in data
collection.

3. Sometimes some samples were not in favor of revealing their investment pattern as they
considered it to be very confidential.

4. It was difficult to get the exact answer from various customers.

5. It was certain time for making this research for getting response to customer. And also I
had to get whole research within 45 days.

6. Financial problem also occur in my project daily follow different location for different
customer so expenditure was very costly.

[81]
CONCLUSION

[82]
Today the mutual fund industry manages around Rs 14900 crores of assets and this amount
is not just invested in equities, but also in entire amount of debt instruments. Mutual funds
emerged as a proxy for investing in avenues that are out of reach of most retail investors,
particularly government securities and money market instruments. Specialization is the
order of the day, be it with regard to scheme investment objective or is targeted investment
universe. Given the plethora of options on hand and the hard sell adopted by mutual funds
vying for a piece of your savings, finding the right scheme can sometimes seem a bit
daunting. It’s not just about going with the fund that gives you the highest returns. It’s also
about managing risk and finding funds that suit your risk appetite and investments needs.
So, question arises how can the retail investor create wealth for himself by investing through
mutual funds? To answer this, above report had brass that what exactly is a mutual
fund.Very simply a mutual fund is an investment is an investment vehicle that pools in the
money of several investors and collectively invests this amount in either the equity market
or the debt market or both depending on the fund’s objectives. This means one can access
either the equity or the debt market, or both without investing directly in equity or debt.
The recent reforms in India and globalization offer tremendous opportunities to Indian
mutual funds. The Indian mutual fund industry is emerging as one of the strongest players
in the global market by absorbing investment technology and modifying managerial
practices, while thinking and acting with a global vision.players are emerging in the mutual
fund industry, which also indicates the potential in the mutual fund market.With the
changing economic conditions in the country and the change in the bank rates now the
investors are looking to invest in more diversified and safe field and mutual funds are
proving to be the best available option for them.

The growth in the mutual fund industry can be can be ascertained by seeing the growth in
the value of the assets under management as at the end of 1993 mutual fund industry had
assets under management of Rs 47004 crores which increased to 126726 cores as on
October 31, 2009 and to 1,40,000 crores on March 31, 2010.

[83]
Thus it can be said that Mutual Fund industry is moving from infancy to adolescence, the
industry is maturing and the investors and funds are frankly and openly discussing
difficulties opportunities and compulsions and the kind of regulatory environment and the
practices that are evolving within the industry there is no doubt that industry would have a
sustained and regulated growth.

[84]
 BIBLIOGRAPHY
BOOKS

Marketing Research by Philip kotler

Research Methodology by C.R.Kothari
Indian mutual funds by Sundar Sankaran
Amfi module by Ncfm

WEBSITES

 www.karvy.com/mfd

 www.yellowpages.com

[85]
  www.indiabulls.com

 www.indiatimes.com

 www.motilaloswal.com

 www.mutualfundsindia.com

 www.indiamart.com

 www.karvycomtrade.com

 www.5paisa.com

NEWSPAPERS

 Times of India
 Hindustan times
 Business Standard

FOR MORE INFORMATION

VISIT AT: www.karvy.com

QUESTIONNAIRE

FOR SECURITIES LIMITED

INVESTMENT PATTERN OF PEOPLE

IN MUTUAL FUND

1. PERSONAL DETAILS:-
NAME:
AGE:
ADDRESS:

[86]
DETAIL OF BUSINESS/PROFESSION:
MOB. / PH.NO.:

2. WHAT IS YOUR INCOME:-

(a) Below Rs.10, 000/- (b) Rs. 10,000-Rs.20, 000
(c) Rs.20, 000-Rs.30, 000/- (d) Rs. 40,000-Rs.50, 000
(e) Rs.50, 000 and above………………….. (Plz. Specify)

3. WHAT PERCENTAGE OF MONEY DO YOU SAVE/INVEST:-

(a) 10%-20% (b) 20%-30%
(c) 30%-40% (d) Above 40%................

4. WHAT IS THE EXPECTED RETURN ON YOUR INVESTMENT?

(a) 4%-6% (b) 6%-8% (c) Above 8%..................

5. WHAT IS THE LOCK IN PERIOD, YOU WOULD PREFER FOR YOUR MONEY IN
MONEY INSTRUMENTS? ………………………… (No. of yrs.)

6. WHICH IS THE SAFEST INVESTMENT IN YOUR VIEW? GIVE REASON?

………………………………………………………………………………………….

7. WHICH IS THE RISKY INVESTMENT IN YOUR VIEW IN WHICH YOU WON’T LIKE
TO INVEST? GIVE REASONS……………………......................
………………………………………………………………………………………..

8. WHERE DO YOU INVEST YOUR MONEY:-

(a) Shares (b) Debentures (c) Bank Deposits
(d) Mutual Fund (e) Insurance (f) Govt. sec.-NSE, PPF etc.
(f) Other……………………………

9. DO YOU KNOW ABOUT MUTUAL FUND?

(a) YES (b) NO

10. DO YOU INVEST IN MUTUAL FUND?

(a) YES (b) NO

11. WHICH TYPE OF MUTUAL FUND DOES YOU PERFER:-

(a) Open Ended (b) Close Ended (c) Growth/ Equity Fund
(d) Balanced Fund (e) Tax saving Fund (f) Sector Specific Fund

[87]
(g) Assured Return Scheme (h) Other……………………………….

12. IF YOU HAVE MUTUAL FUNDS, MENTION THEM:-

 ………………………………………
 ………………………………………
 ………………………………………
 ………………………………………

13. WHAT INFLUENCE YOU TO INVEST IN MUTUAL FUND?

(a) High Return (b) Friend/ Relative
(c) Tax Benefits (d) Marketing Condition
(f) Other………………………..

14. IF YOU HAVE INVESTED MONEY IN MUTUAL FUND TILL DATE WHAT IS THE
AMOUNT?
…………………………………………………… (Rs.)

15. HOW MUCH MONEY CAN YOU INVEST IN MUTUAL FUND?

………………………………………………….... (Rs.)

16. IN YOUR VIEW, WHAT IS THE RISK FACTOR INVOLVED IN MUTUAL FUND
INVESTMENT?
…………………………………………………………………………………………..

17. WHICH MEDIATOR SERVICE DO YOU TAKE FOR MAKING INVESTMENT IN

SHARES, MUTUAL FUNDS ETC.?
 MARKETING AGENT APPROACHING YOU
 FINANCIAL CONSULTANTS
 FRIENDS/ RELATIVES
 OTHERS………………………….

18. HAVE YOU HEARD ABOUT “KARVY CONSULTANTS LTD.”?

(a) YES (b) NO
[88]
19. DO YOU KNOW WHAT e-TDS IS?
(a) YES (b) NO

20. DO YOU POSESS A PAN CARD?

(a) YES (b) NO

[89]