A PROJECT REPORT ON MUTUAL FUNDS SERVICES SYSTEM (MFSS) CONDUCTED FOR KARVY STOCK BROKING LTD
SUBMITTED BY RAHUL M PAREKH INDIAN INSTITUTE OF PLANNING & MANAGEMENT ( IIPM)
I take immense pleasure in completing this project and submitting the summer project report. The last 60 days with KARVY STOCK BROKING LTD has been full of learning and sense of contribution toward the organization. I would like to thank KARVY STOCK BROKING LTD. for giving me an opportunity of learning and contributing through this project. I also take this opportunity to thank all those people that made this experience a memorable one. A successful project can never be prepared by the single effort of the person to whom project is assigned, but it also demand the help and guardianship of some conversant person who helped the undersigned actively or passively in the completion of successful project. During the actual project work, Mr. Samir Vora(Sales Head) has been a source of inspiration through his constant guidance; personal interest; encouragement and help. I convey my sincere thanks to him. In spite of his busy schedule he always finds time to guide me through the project. I am also grateful to Mr. Pankaj Solanky(Relationship manager)for reposing confidence in my abilities and giving me the freedom to work on my project. Last but not least, I would like to thanks all of my friends and well wishers for giving me their support during this project knowingly or unknowingly. Rahul M Parekh
The project titled “MUTUAL FUNDS FOR INDIVIDUAL INVESTORS IN INDIA” being carried out for KARVY STOCK BROKING LTD. KARVY operates in various financial products and services like, Consultancy, Stock Broking, Mutual Fund, Insurance, Registrar and Transfer Agent, Research, Mapin etc. The evaluation of financial planning has been increased through decades, which is best seen in customer rise. Now a day’s investment of saving has assumed great importance. According to the study of the markets, it is being observed that markets are doing well in Mutual fund. In near future a proper financial planning is required to invest money in all type of financial product because there is good potential in market to invest. In this project the great emphasis is given to the investor’s mind in respect to investment in Mutual Fund .The needs and wants of the client is taken into consideration. I hope KARVY, MUMBAI will recognize this as well as take more references from this project report. The main objective of this project is to know the Mutual Funds for individual investors in India and also to know the investing pattern of people in different Financial Project. IT sector has been given more emphasis for the study of the project because it is the only sector where all type of Age group, Income class and different level of people are represented. After analyzing the feedback the conclusion has been made that the Indian financial market is having lots of potential customer the only thing is to give a proper guidance to the prospective customers.
There are several advantages in utilizing their Stock Broking services. Karvy Stock Broking Limited. The Bombay Stock Exchange (BSE). Creating a plethora of opportunities for the customer by opening up investment vistas backed by research-based advisory services.
. Here. The difference between unpredictability and a safety anchor in the market is provided by indepth knowledge of market functioning and changing trends.COMPANY PROFILE
Karvy Stock Brocking Ltd is a member of National Stock Exchange (NSE). It is an undisputed fact that the stock market is unpredictable and yet enjoys a high success rate as a wealth management and wealth accumulation option. Instead they provide services which are multi dimensional and multifocused in their scope. planning with foresight and choosing options with care. Helping the customer create waves in his portfolio and empowering the investor completely is the ultimate goal. This is what Karvy provide in their Stock Broking services. growth knows no limits and success recognizes no boundaries. flows freely towards attaining diverse goals of the customer through varied services. which are the reasons why it is one of the best in the country. Karvy offers services that are beyond just a medium for buying and selling stocks and shares. and The Hyderabad Stock Exchange (HSE). one of the cornerstones of the Karvy edifice.
the final report for the day. where the market and the report itself is reviewed. Their highly skilled research team. through daily reports delivered thrice daily. they publish a monthly magazine. comprising of technical analysts as well as fundamental specialists. while a weekly report. keeps the investor more informed on the immediate trends in the stock market. which analyzes the latest stock market trends and takes a close look at the various investment options. In addition. Besides this. The Pre-session Report. by accounting for several risk factors and planning accordingly. they also offer special portfolio analysis packages that provide daily technical advice on scripts for successful portfolio management and provide customized advisory services to help the investors to make the right financial moves that are specifically suited to their portfolio. This crucial information is given as a constant feedback to their customers. market analysis and market predictions. To add to this repository of information.
. The Midsession Report. and products available in the market.Karvy offer trading on a vast platform. where the market forecast for the rest of the day is given and The Post-session Report. called. their specific industry reports give comprehensive information on various industries. Bombay Stock Exchange and Hyderabad Stock Exchange. More importantly. constant feedback and sound advisory facilities. where market scenario for the day is predicted. They are assisted in this task by their in-depth research. The Finapolis. they make trading safe to the maximum possible extent. secure result-oriented information on market trends. timed to arrive during lunch break . Karvy. National Stock Exchange. Karvy Bazaar Baatein.
phone calls etc. both as a trading and risk hedging mechanism. But true to their spirit.
. Over the years they have ensured that the trust of their customers is their biggest returns. but just a platform to launch further enhanced quality services to provide investors the latest in convenient. In the future. this success is not their final destination.Their Stock Broking services are widely networked across India. they have enhanced their manpower and revitalized their knowledge base with enhances focus on Futures and Options as well as the commodities business. To empower the investor further they have made serious efforts to ensure that their research calls are disseminated systematically to all their stock broking clients through various delivery channels like email. chat. SMS. Factors such as their success in the Electronic custody business has helped build on their tradition of trust even more. which they provide to a spectrum of investors. Consequentially their retail client base expanded very fast. with equal dedication and competence. high-networth or otherwise. their focus will be on the emerging businesses and to meet this objective. customer-friendly stock management. with the number of their trading terminals providing retail stock broking facilities. Their services have increasingly offered customer oriented convenience. Their foray into commodities broking has been path breaking and they are in the process of converting existing traders in commodities into the more organized mainstream of trading in commodity futures.
then you can start looking into ways to use that money to create more money. Mutual Fund Advisory Service at Karvy guides you through this maze and ensures that your investments are backed by our quality research. are shared by its unit holders (investors) in proportion to the number of units owned by them 7
. very few fulfill them. etc.) Customized mutual fund portfolios. We. Money can multiply through investments in the stock market. then you can start looking into ways to use that money to create more money. at Karvy help you to reach your goals by offering: Products of 33 AMCs Research reports (existing funds & NFOs. debentures and other securities and also in Other investible avenues such as real estate. Money can multiply through investments in the stock market. It's just a matter of systematic planning and disciplined approach. One avenue which invests in all is mutual funds. commodities. Once you have small amounts saved up. Once you have small amounts saved up. However. One avenue which invests in all is mutual funds. strategy reports etc. people can build their core capital is by investing in a mutual fund What is a Mutual fund? A mutual fund basically pools the money of investors. A luxurious life is generally linked with wealth. Mutual funds offer an opportune way to long-term wealth creation. Portfolio revision (depending on changing market outlook and evolving trends) Access to online consolidated portfolio statement KARVY as Mutual Fund investment advisor While everyone dreams of a luxurious life. who share some common financial objective. Therefore. one of the crucial ways. with more and more funds flooding the market. real estate. commodities. people can build their core capital is by investing in a mutual fund. So. real estate. commodities etc. Therefore. the question most people would like to know is: How do I create wealth? Or how can I get rich? It's really not that difficult to create wealth. Income thus earned and the capital appreciation realised. This money is invested in capital market instruments like shares.INTRODUCTION TO MUTUAL FUNDS Investment is the stepping stone to achieving one's financial dreams. etc. one of the crucial ways. the task of selecting the most suitable scheme gets even more complicated.
which is a practical tool for long-term wealth creation. 6: With the usage of derivative instruments (which help limiting the downside). the investor benefits by earning higher risk-adjusted returns than the market. 7: By investing through mutual funds which invest in IPO’s. But it involves higher risk compared to equity market. 2: Fund manager takes care of the 2: The right calls in the right stocks offer portfolio performance through his better returns. expertise in analyzing the company's performance and the outlook on market scenario. 5: SIP approach. funds. selection of appropriate IPO’s issues) according to his choice of time and money from the universe of stocks. So the investor just has to track the fund's performance. 3: The cost of churning is low when 3: The investor can exploit the right investments are made through mutual opportunities (such as bonus/dividend. discretion. Investing through mutual funds Positives Investing in stock markets directly Positives
1: An investor with small amount can 1: Investor with reasonable investment invest small amount and can have surplus can pick stocks according to his exposure to large number of stocks.
.How is mutual fund investing different from investing in stock markets? The following table lists down the advantages and disadvantages associated with adopting the two approaches to investing. 8 4: The investor can earn higher return through future and options. can be opted in mutual funds. 4: Investors can geographically diversify their portfolio by putting their money in funds which invest in international markets. retail investors can invest in a large number of IPO’s.
fund manager. The investor may not be allotted the desired number of shares applied by him due to oversubscription.for whatever amt he is ready to invest.
2: Investor has to keep a track of the market and the individual stocks as well.
1: Investor doesn't have the freedom of 1: It doesn't offer a user-friendly getting a desired allocation to specific environment for the investment in IPO’s stocks and sectors as it is decided by the due to following reasons. efforts and expertise.
There is a limit on the investment amount in IPO’s. 4: Investing in international market might prove to be an expensive affair for retail investors. This whole process requires more of time.
. 3: To limit his downside through F&O market. investor has to pay a hefty sum as margin money. Further. 5: Relatively high cost of . • The investor can't invest in large no of IPO’s at the same time due to the high up front application amount. F&O trading requires constant market tracking which is a very time consuming task. as short-term capital gains tax comes into picture.
2: Mutual fund investors have to shell out loads and bear the fund management fee charged by the mutual fund house and the AMC.
Investors can view his fund's NAV on a daily basis. If an investor shifts his holdings. with a very small amount of investment. A mutual fund is relatively an inexpensive way for a small investor to get a full-time manager to create and monitor his portfolio. Also. As compared to other tax saving avenues. Diversification across various securities lowers the risk associated with investment Higher risk-adjusted returns: Majority of equity funds have outperformed indices while other avenues like fixed deposits. majority of the funds disclose their portfolio holdings on a monthly basis Tax-saving: Mutual funds are exempted from capital gains arising out of portfolio churning. one can enter and exit the fund (open-ended) depending on his discretion Transparency: The transparency levels are very high in this industry. there are ELSS funds (tax saving funds) which help availing the benefit of tax-saving u/s 80C. mutual funds are a costefficient way of portfolio management. Low entry barrier: Any investor can invest in mutual funds. 500 Liquidity: Easy and fast redemption leads to high liquidity. Complexity: Frees from the complexity involved in equity and debt markets. Diversification: Investing in mutual funds enable a well-diversified portfolio. Further. Also. he will have to pay these taxes. He need not open a broking or a demat account to invest in mutual funds. post-office schemes etc. Thus.Benefits of mutual funds Sets the investor free from four main constraints Convenience and Knowledge: The investor need not go through the tedious task of research and stock selection and need not track the market to manage the portfolio. Time: Frees one from spending his precious time to track his portfolio everyday. they have lowest lock-in period and also offer higher return potential
. investment can be made in mutual funds with an amount as low as Rs. Also. have delivered lower returns Professional management: Investors purchase funds because they do not have time or expertise to manage their own portfolio.
Here are three broad classes from which one can choose to invest. depending upon his risk-return profile.g.
There are various classes of mutual funds depending upon the nature of investments. mutual funds are broadly divided into two classes:
Open-ended funds: Investors can buy and sell the units from the fund. such funds have relatively low liquidity.. Therefore. Therefore. There are derivative funds which adopt various derivative strategies to gain from the either side movement of the market. after the offer period. If the fund is listed on a stocks exchange the units can be traded like stocks (E. Close-ended funds: These funds raise money from investors only once. Redemption of units can be made during specified intervals. at any point of time. Morgan Stanley Growth Fund).Innovative schemes to suit unique needs of different investors: There are schemes that offer international diversification to reduce the geographical risk. Capital protection funds offer a unique feature of capital protection coupled with market linked returns
CATEGORIES OF MUTUAL FUNDS In terms of ease with which investors can enter and exit funds. most of the New Fund Offers of close-ended funds provided liquidity window on a periodic basis such as monthly or weekly. Recently.
• • •
Equity funds Balanced funds Debt funds
. fresh investments can not be made into the fund.
such funds can yield great capital appreciation as. Hence. short term fluctuations in the market. such funds show volatile performance. historically.Equity funds These funds invest in equities and equity related instruments. At the same time. However. generally smoothens out in the long term. even losses. equities have outperformed all asset classes in the long term.
Fund classification based on capitalization focus 12
. With fluctuating share prices. investment in equity funds should be considered for a period of at least 3-5 years. thereby offering higher returns at relatively lower volatility.
Following are balanced funds classes
Debt-oriented funds Equity-oriented funds
Debt Funds They invest only in debt instruments.There are also funds based on capitalization which invest in companies falling within a certain segment of market capitalization. and money market instruments such as certificates of deposit (CD). Put your money into any of these debt funds depending on your investment horizon and needs. they fall between equity and debt funds.
. and are a good option for investors averse to idea of taking risk associated with equities. Balanced funds are the ideal mutual funds vehicle for investors who prefer spreading their risk across various instruments. they invest exclusively in fixed-income instruments like bonds. Based on capitalization. commercial paper (CP) and call money. debentures. Government of India securities. on the risk-return ladder. As a result. equity funds can be placed on the risk return grid as shown below
Balanced funds Their investment portfolio includes both debt and equity. Therefore.
• • • • • • • •
MIPs Arbitrage Funds FMPs Arbitrage Funds Income Funds Floating rate funds Gilt funds Liquid funds
An investor may not be able to sell off when markets fall in the direct stock market. while still maintaining a diversified portfolio across various schemes. investing in a fund of fund offers the convenience of having a single consolidated account statement. and dynamically manage their portfolio in an endeavour to achieve high risk-adjusted returns. a fund of fund keeps track of the mutual funds it invests and hence manages the portfolio on behalf of investors. Hence. Instead of having different account statements for different funds.Innovative funds Fund of funds A fund of funds is a mutual fund scheme that invests primarily in other schemes of the same mutual fund or other mutual funds. it may be difficult for an individual investor to keep a track of the overall stock holdings 16
. who actively manages his portfolio. it is a step ahead of mutual fund in the sense that while a mutual fund keeps a track of the stocks it invests. Flexibility Investors can spread their money across different strategies/managers. In such a case. investment in a fund of fund could prove to be an efficient route Disadvantages Fee structure Expense fees on fund of funds are typically higher than those on regular funds because investors have to bear expenses for the main fund of fund and other funds it invests into Stock-wise portfolio tracking Since a fund of funds buys many different funds which further invest in many different stocks. cost of execution and tax impact on short term switches could be a constraint. it is possible for the fund of funds to own the same stock through several different funds. A fund of fund can easily switch from one fund to another Cost factor For an investor. This task of managing the mutual funds portfolio is done on their behalf by fund of funds. Thus. Such funds are treated as a debt-oriented fund for tax purposes Advantages Convenience Investors switch between different funds at different times.
Geographical diversification to investors
It provides additional diversification and flexibility to overcome country-specific factors Disadvantages It can lead to volatility if it is exposed to expensive markets like Brazil or Russia Risk-return profile It depends on the foreign market it is exposed to 17
. Hence this fund will be suitable in a falling mar Higher potential in generating returns It can offer higher return through short or long positions. Disadvantages The investor has the possibility of loosing his money if the fund takes unhedged positions Risk-return profile If the fund follows only hedging procedure then it can be termed as low risk . But if it takes short positions or unhedged positions then it can fall under high-risk.Risk-return profile Its position in the risk-return grid depends on its allocation to equity and debts funds Derivative funds They invest in the derivative market which limit the downside risk by selecting hedging approach and also offer additional return through shorting procedure Advantages Limit the downside risk Derivatives are generally used for hedging purpose so that they can limit the downside risk of equities. But this involves high risk. high-return category Internationally diversified funds They invest in equities and equity related instruments of companies listed overseas.low return category.
the allocation to debt and equity is revised and changed periodically (daily. one can invest Rs.Capital protected funds (CPFs) These funds intend to offer reasonable return while protecting the capital Trying to understand capital protection strategies using financial jargons is like cracking a puzzle. Let us consider a case where one wants to invest Rs. Therefore. fortnightly or monthly). it is known as Static Asset Allocation. higher will be the portfolio's equity exposure in rising markets. Assuming debt paper return of 8% p. It is known as dynamic asset allocation. On the other hand if he loses his entire Rs. 100 plus gains on Rs. In one more type of capital protection strategy.. Multiplier: It is an implied leverage which is applied to the portfolio.a. weekly. This will grow to Rs.77 at the end of 3 years. But these strategies are based on one simple formula which can be adopted by anyone. 20 invested in risky avenues. Thus. 100 for a period of 3 years. he will receive Rs. He can use the remaining Rs. 80 in such paper for three years. 100. 100 at the end of three years. 20 to invest in other risky avenues which has the potential of generating higher returns.
. Higher the multiplier. he still manages to secure Rs. 20. It generally varies from 2 to 5. which decides the risk that a portfolio can be exposed to. If the risky avenues yield favorable returns. initial investment once made in debt and equity (in the report risk-free portion will be referred as debt and risky avenue will be assumed as equity) is not changed over the life time of the fund and it remains static.
SHAPE YOUR WEALTH THROUGH SIP Introduction Which ever way you choose to invest your money to create wealth.
Rupee-cost averaging: Any market witnesses ups and downs over a period. The initial investment amount may be as low as Rs. The best investment approach to be followed in such cases is a SIP. the markets have proved investors wrong by showing their unpredictable nature. SIP provides this benefit to retail investors. wherein they can invest a part of their monthly savings regularly. Once your investment returns start compounding year after year. Systematic approach: SIP helps in investing consistently in a disciplined manner and further it helps in compounding returns as well.) SIP in lump sum investment 5000 5000 5000 5000 500. it is! For this two simple principles need to be followed religiously Stay invested for long term SIP is one approach which lets the investors follow the two basic principles of investing at one go Benefits of SIP
Monthly contribution: Investing at one go proves to be a burden on the pockets of investors. NAV (Rs. Time and again.500. irrespective of the NAV movement an investor acquires more units compared to a one time investor.) 10 8 10 12 Units allotted in Amount invested Units allotted in Amount invested lump sum in SIP (Rs. This impact is most crushing on retail investors. The following table illustrates the same.00 416. On the other hand. Successively. this means higher gains. you will really start to see the effect it has on your wealth creation activities Uncertainty is the basic nature of stock markets.00 500. the sooner you start the better off you will be.67 20 25000 – – – 2500 – – –
Month 1 2 3 4
. Is it possible to ride on the stock market volatility. Here.00 625. one thing is for sure. monthly investments in small amounts are more feasible for them. without getting hurt? Yes.
showing that while investing for long term. it doesn't really matter whether you are investing at market peaks or market lows Hence time in the market is more important than timing the market. being lucky.67
SIP approach lets the investor to buy more units when the prices are low. thereby bringing down the average cost for the investors. If a fund is able to meet this condition. 1 lakh
. Investing through SIP frees you from timing the market because over a long horizon. it is treated as equity oriented fund.5 Total
500.000 at the index level on the first day of every month.09%
The returns in the above three cases differ by a very small margin. Investment made BSE Sensex returns Sehwag (indifferent) 20. An equity oriented fund means a fund where investments in equity shares in domestic companies are more than 65% of the assets. unfortunately invests the same amount but at the highest level of the index during that month. and Kaif.87% (most Kaif (unlucky) 19.02% Dhoni lucky) 20. all funds are classified as equity oriented or debt oriented funds.5. Timing the market approach: Consider three cases.00 2541. else as debt oriented fund
Applicable tax deductions: ELSS Eligible for tax deduction u/s 80 c for an amount up to Rs. invests the same amount at the lowest value of the index every month. Dhoni. Sehwag invests Rs. SIP investment evens out the market ups and downs MUTUAL FUNDS TAX PERSPECTIVE For the purpose of tax-treatment.
“Service Umbrella” providers will be in more demand and provide a greater value than standalone service providers. There will be a need for a broking account and a demat account to invest in Mutual Funds in India. Change in the profile of the intermediaries involved in these transactions – only “authorized” entities will be allowed to help the investors undertake these transactions.
. Mutual Fund investment transactions will be similar to direct equity investment transactions. 2009 saw the introduction of a completely new concept called Mutual Fund Service System (MFSS). The Required Change Mutual Fund schemes being traded on the stock exchanges. a Partnership with a Renowned Financial Intermediary in India. The concept of ‘Business Associate for Mutual Funds’ will give way to a comparatively more important concept of an ‘Authorized Person’. convenient and efficient transactions. Hence. all of the Mutual Funds transactions at stock exchanges will be in dematerialized format with obvious benefits in form of more transparent. Starting with the equity oriented schemes.A Great Business Opportunity Of MFSS For Authorized Persons Introducing MFSS November 30. will become the Need of the Hour. both being traded at the stock exchanges. Going forward. Mutual Fund schemes will now be transacted on the Stock Exchanges in India (NSE and BSE). the following will be the mandatory changes: A complete change in the way Mutual Fund investment transactions in India will be organized. that has an existing relationship with the capital markets as a Broker as well as a Depository Participant.
A Free-of-Charge Mutual Fund and Equity Online Trading Terminal will be provided by KARVY to enhance your convenience of execution of transactions either your place or at our office. will let your clients continue to invest online in Mutual Fund schemes with convenience. A Free-of-Charge Mutual Fund and Equity Online Trading Terminal will be provided by KARVY to enhance your convenience of execution of transactions either your place or at our office. You will just need to sign-up as an Authorized Person with KARVY for the MFSS product. What's more !!! You will continue to remain in a commanding position of a preferred financial advisor and enjoy the remuneration of the good old days.
• • •
MFSS Benefits to an Authorized Person • • No Charges / Fee is required to be paid by you for registering with KARVY as an Authorized Person for Mutual Fund investments. You share the brokerage earned by KARVY on all MF purchase and redemption transactions of your clients is paid to you. A range of benefits will follow. You share the brokerage earned by KARVY on all MF purchase and redemption transactions of your clients is paid to you.KARVY as Your Preferred Business Partner • • • KARVY is future ready to help you successfully deal with this big change that has just begun. You also will be able to provide your clients the facility of online investments and trading in direct equities at the stock exchanges. No Charges / Fee is required to be paid by you for registering with KARVY as an Authorized Person for Mutual Fund investments. The MFSS product provided through KARVY to you.
This opportunity will help to you to more effectively service your Mutual Fund clients by enabling their direct equity investments and trading transactions as well.000/• 50% of this trail commission is paid to You
Trail Commission: An Illustration • Assume the value of AUM mobilized by you based on your clients’ investments through KARVY MFSS.
Benefits from the Equity Tie-up: 24
. • 75% of this brokerage is also paid to You
Have a share in the Trail Commission (paid on a quarterly basis ).000/.00. A Trail Commission of 0.00.for the entire previous year and also the maintenance of the average quarterly balance of AUM value of Rs.00.a. 5. 5. 5.
Trail Commission payment is subject to the maintenance of the minimum AUM value of Rs.000/-* as on 30th September 2009 (for the quarter ended 30th September 2009). You can also diversify your advisory services by further enrolling with KARVY for direct equities. 5. Rs. to be Rs.50% p. 625.00. 312. exceeds Rs.The Additional Benefits from MFSS • You Also Get to
Have a share in the brokerage received by KARVY from the AMCs in the MF investment of your clients. if the MF AUM (Asset Under Management) from your clients. paid (on a quarterly basis) to KARVY by an AMC on this AUM value.5 (50% of this Trail Commission value) will be paid to you. is calculated as Rs.000/The Competitive Edge: MFSS + Equity • • • Register for the KARVY MFSS product and achieve the position of a leading Authorized Person for Mutual Funds. invested through the KARVY MFSS.
Alternatively the user can set up the schemes on the market watch screen through ‘Security List’. symbol and series.
You will share the brokerage earned by KARVY on the direct equity investment and trading transactions of your clients. Parameters for Mutual Fund Service System. The schemes set up on market watch allow the user to: 1.3. View scheme details like ISIN. Default the scheme descriptor while entering subscription/ redemption request thereby reducing data entry. depending on the number of clients introduced by you for this service % of Brokerage paid* to you 25% 30% 40%
No. View the indicative NAV (i. NAV of previous day) for the scheme. 2. For further details Participants are requested to refer to the on-line help facility.e. 3. Market time 9. limits etc. The user can set up the scheme individually by first pressing the [F4] key and then enters the schemes details like category. by double click on the scheme.00 PM MFSS Segment DP Series DR GR Dividend Payout option Dividend reinvestment option Growth option
Setting up schemes in market watch The facility is available to the user to set up the schemes on the market watch screen. of Clients Introduced Up to 25 clients 26 clients to 50 clients 51 clients to 100 clients
Brokerage will be paid on a monthly basis
NEAT-MFSS Features The NEAT MFSS features and user navigation for MFSS are described below.00 AM .
The user is required to provide depository ID and client beneficiary ID along with client codes. DP Master A client is registered as an individual client in client registration process described above. ISIN code. However. A bulk upload facility is also available to set up client registration. series. The user shall not be allowed to place an order for the client if registration details of the client are not maintained. symbol. The user can modify/ delete client registration already maintained subject to certain restrictions. scheme name. Firstly the user is required to register all joint holders for the depository account if subscription/ redemption request is to be entered with depository settlement. This one time set up of DP master is must if the user wishes to enter subscription/ redemption request for the client with depository settlement. The user can request following types of subscription/ redemption requests:
• • • • •
Physical Subscription – Fresh (first time) Physical Subscription – Additional Depository Subscription – Fresh (first time) Depository Subscription – Additional Physical Redemption
. Setting up of Client Registration: The facility is available to the user to set the client details. Order Entry This facility is available to the user to enter the subscription and redemption order by pressing the [F1] and [F2] key respectively. The sequence in which client codes are entered shall be the same as available for depository ID and client beneficiary ID combination. AMC code.Security List The facility is available to the user to list the schemes available for trading on NEAT-MF The user can search for the schemes by filtering on scheme category. depository accounts can be maintained in joint accounts. The facility is available to the user to maintain DP Master of the client.
Purchase Type The user can request for fresh or additional subscription. it is mandatory to enter the folio number for additional Subscriptions and Redemption Requests. Similarly. maximum amount is specified at the scheme level for physical redemption.This field is not applicable for redemption requests. 1 crore. Minimum amounts are specified at the scheme level for fresh and additional subscription.DP Settlement The user can declare upfront whether the subscription/ redemption request would be settled in physical mode (‘N’) or depository mode (‘Y’). Order Amount The user is allowed to place order amount in multiples of rupees. FOLIO Number If the DP Settlement is ‘N’. DP ID – Beneficiary ID If the DP Settlement is ‘Y’. Application Number This is optional field. No subscription/ redemption order should be entered with amount equal to or greater than Rs. Physical redemption order would be rejected if the order quantity is equal to or greater than the amount specified. Physical redemption order would be rejected if the order amount is equal to or greater than the amount specified. The subscription order would be rejected if the order amount is not greater than or equal to the amount specified.
. Maximum quantity is specified at the scheme level for physical redemption. The user must enter depository ID and client beneficiary ID available in DP master. For additional subscription in physical mode folio number would be mandatory. Order Quantity The user is allowed place order quantity only for redemption requests. The client codes linked to the combination are picked up from DP master and relevant details for such clients are picked up from the client registration. it is mandatory for the user to enter depository details. For depository redemption order amount is not applicable.
Full Message Display This facility is available to the user to view interactive messages (i. The user would not be allowed to modify symbol. This is available only during the market hours. The mode of holding can be ‘Single’ (SI) / ‘Joint’ (JO) / ‘Anyone or Survivor’ (AS) For depository subscription and redemption orders the client codes would be defaulted from the depository master for the given DP ID – Beneficiary ID combination. Subscription and redemption orders would be presented separately. series. A facility is available to modify or cancel particular order displayed in the list. 3.Client Code and mode of holding For physical subscription and redemption orders the user would enter the client code and mode of holding.e. The facility to submit the bulk orders using offline order entry facility. For the client code entered client name. The facility to take online backups of orders entered by the user for the day.
Outstanding Orders This facility is available to the users to view the outstanding orders in particular scheme. 50. PAN and KYC information shall be displayed from Client Registration. Activity log This facility is available for the user to track order entry/ modification/ cancellation activities performed for specific scheme. For subscription request above Rs. The facility to print the confirmation slips either online or offline. scheme name and depository settlement. transaction messages like order confirmation. order modifications etc.
. 2. This information is available only for the current day. The user would not be allowed to change the default client codes. Order Modification/ Cancellation This facility is available for the user to modify or cancel specific outstanding orders.KYC must be completed (‘Y’) for all the clients entered for the order.) and market messages sent by the exchange. sign on/ sign off. Following additional facilities are provided along with order entry: 1. The user would not be allowed to change this information.000/.
3. The facility is available to the corporate manager to set the limit on the total value of orders that can be entered by the specific branch within the trading member’s firm by specifying the branch order value limit. The facility is available to the corporate manager or branch manager to set the day limit on the total value of the orders that can be entered by the specific user within the trading member’s firm by specifying the user order value limit. WHO CAN INVEST? • • • Individuals HUFs Minor ( Residents )
. The facility is available to the dealer to the set quantity / amount limits for individual orders entered by self by specifying the order limit.Risk Management following trading member firm level risk management features are provided along with order entry: 1.11/183204/2009.
MUTUAL FUND TRANSACTISION USING TRADING PLATFORM • • • • National Stock Exchange ( NSE ) Mutual Fund Service System ( MFSS ) Bombay Stock Exchange ( BSE ) BSE STAR MF Platform ( STAR MF )
WHO CAN ACT AS A PARTICIPANT? As specified vide SEBI circular SEBI/IMD/CIR No. trading members of the Exchange who are ARN holders and who have passed the AMFI certification examination will be permitted to participate (herein known as Participant) in this ELECTRONIC PLATFORM.
Else the investor having credit balance in their trading account can also do the transaction by signing fund transfer letter to the Participant: • • • • • • Completed and Signed respective scheme Application Form Copy of PAN Card of first holder Copy of PAN Card of each additional holder in case of joint investment Copy of KYC acknowledgement form (in case the of investment of Rs. Transactions can be executed in • • Physical Mode Demat Mode
SUBSCRIPTION – PHYSICAL MODE The investor has to submit the following documents/details along with clear funds in our bank A/C HDFC Bank – 00030340041014. Orders can be entered on the Electronic Platform between 9:00 AM to 3:00 PM Subscription / Redemption order submitted on a given date. • • • Fresh Subscriptions ( Only Lumpsum ) Additional Subscriptions ( Only Lumpsum ) Redemptions
TIMINGS FOR SUBCRICPTION & NAV. 50. 30
. in case the subscription is an additional purchase.HOW TO INVEST? Investor Needs to open a Client Account with the Stock Exchange Broker by filling a Client Registration Form (CRF) or existing SMC client’s can do so by filling only Annexure 3. MODE OF TRANSACTIONS.
AVAILABLE TYPES OF TRANSACTIONS.000/. will get the NAV as at the end of the day for respective scheme.and above) of all holders Copy of Guardians PAN Card in case investment is on behalf of minor Folio No.
m..m.. Investor will be required to transfer orders to the NSCCL pool account on the transaction day by 4:30 p.REDUMPTION – PHYSICAL MODE The investor has to submit the following documents along with the funds to the Participant: • • • • • Redemption Form duly signed with clearly mentioned folio number and scheme. on the same day. Copy of PAN Card of first unit holder Copy of PAN Card of each additional unit holder in case of joint investment Copy of Guardians PAN Card in case investment is on behalf of minor
SUBSCRIPTION – DEMAT MODE The investor has to submit the following documents/details along with clear funds in our bank A/C HDFC Bank – 00030340041014. NSDL & CDSL A/C holder should provide delivery instruction for crediting the units for redemption should be given by the investor to the following account:
NSDL A/C HOLDER CM BP ID CM Name ISIN Market Type Settlement Number IN565576 NSCCL ……………………. as an on-market transaction. 31
. Mutual Fund ……………………. Else the investor having credit balance in their trading account can also do the transaction by signing fund transfer letter to the Participant: • DP Id and Beneficiary Id of his Depository Account
REDUMTION – DMAT (NSE) The investor has to submit the following documents along with the redemption request to the participant . The same redemption form should reach to the registrar before 4:00 p.
1100002900000011 --------ICCL Mutual Fund As applicable NSDL --------IN 619960 ICCL Mutual Fund As applicable
REDUMPTION – DMAT(BSE) The investor has to submit the following documents along with the redemption request to the participant .. as an on-market transaction.. Investor will be required to transfer orders to the ICCL pool account on the transaction day by 4:30 p.CDSL A/C HOLDER Counter BO ID : (NSCCL House Account) 1100001100017837 Exchange Name ISIN Market Type Settlement Number NSCCL …………………….m. CMBP-ID CM Name Market Type Settlement No. NSDL & CDSL A/C holder should provide delivery instruction for crediting the units for redemption should be given by the investor to the following account: CDSL Demat Account No. Mutual Fund …………………….
of investor • Attractive brokerage • Exciting opportunities to increase revenues • Reduction of expenses (Courier.Benefits Of Trading Platform For You As An Advisor • Effective time management • Flexibility in transaction execution • Advise large no.) For Your Client • Hassle-free transaction • No paper work • No cheque writing • Any time any where • All leading Mutual Funds online Online MFSS Login Process. Conveyance. Login Screen
First Screen After Login In NEATMF
Client Regestration Form
After client Registration ADD DP-ID Details Of Clients
Now u Can Place Order For Clients.
Available MNC’s On Online MFSS • • • • • • • • Birla SL Mutual Fund HDFC Mutual Fund IDFC Mutual Fund Reliance Mutual Fund Religare Mutual Fund SBI Mutual Fund Tata Mutual Fund UTI Mutual Fund