Prof. M.K Gandhi: A Project Report On

A PROJECT REPORT ON
Comparative Analysis of Mutual Fund in Pune.
AT
Birla Sun life Asset Management Company (BSLAMC)
BY
Prateek Awasthy
UNDER THE GUIDANCE OF
Prof. M.K Gandhi
SUBMITTED TO
UNIVERSITY OF PUNE
IN PARTIAL FUFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE OF
MASTER OF MARKETING MANAGEMENT
YEAR 2012 TO 2014
For
Indira Institute of Management, Pune
1|Page Indira Institute of Management, Pune

ACKNOWLEDGEMENT
It is my great pleasure to present this report of Internship at Birla Sun life Asset
Management Company (BSLAMC), in partial fulfillment of MMM programme, Indira
Institute of Management, University of Pune.
I am extremely grateful to BSLAMC which has provided me with an opportunity to undergo

my Summer Internship for the period 15th May – 15th July, 2013.
The project is the important part of my study and gives me a real practical exposure to the
corporate world and it is almost impossible to do the same without the guidance of several
people.
At the outset, I would like to express my immense gratitude to my training guide for guiding
me right from the inception till the successful completion of the training, Mr.Gulshan
Goklani, and Prof. M.K Gandhi, Faculty, Indira Institute of Management, Pune who
steered my course of two months to perfect learning.
This Summer Internship would not have been fruitful without the guidance of
• Mr. Gulshan Goklani

• Mr. Santosh
I also wish to thank all the clients who patiently attended to my survey. Without the help of
the above mentioned people, I would not have churned out the benefits, which I feel I have
after this internship. They played an integral part in enhancing my learning.

Executive Summary
A mutual fund is a scheme in which several people invest their money for a common
financial cause. The collected money invests in the capital market and the money, which they
earned, is divided based on the units, which they hold.
The mutual fund industry started in India in a small way with the UTI act creating what was
effectively a small savings division within the RBI. Over a period of 25 years it grew fairly
successfully and gave investors a good return and therefore, in 1989, as the next logical step,
public sector banks and financial institutions were allowed to float Mutual Funds and their
success emboldened the government to allow the private sector to foray into this area.
The advantages of Mutual Funds are professional management, diversification, economies of

scale, liquidity, and simplicity.
The disadvantages of Mutual Funds are high cost, over diversification, possible tax
consequences, and the inability of management to guarantee superior returns.
Mutual Funds are easy to buy and sell. You can either buy them directly from the fund
company or through a third party. Before investing in any funds one should consider some
factors like objective, risks, fund manager’s and schemes track record, cost factor etc.
There are many types of Mutual Funds, you can classify funds based Structure (open & close
ended funds), Nature (equity, balanced, debt), Investment objective (growth, income, money
market), etc.
A code of conduct and registration structure for mutual funds intermediaries, which are
subsequently mandated by SEBI, In addition AMFI was also involved in a number of
developments and enhancements to the regulatory framework.
The most important trend in mutual funds industry is the aggressive expansion of the foreign
owned mutual fund companies and the decline of the company floated by nationalized banks
and smaller private sectors players.
Birla sun life mutual fund, Reliance mutual fund, UTI mutual fund, ICICI prudential, HDFC
mutual funds are the top five 5 mutual funds company of India.

Birla sun life mutual funding is considered to be a most reliable mutual fund in India.
People want to invest in this institution because they know this institution will never
dissatisfy them at any cost. You should always keep this into your mind that if particular
mutual funding scheme is on larger scale then next time you might, not get the same results
so being a careful investor you should take your major step diligently, otherwise you will be
unable to obtain the high returns.

CHAPTER-1
INTRODUCTION

1.1- INTRODUCTION
There are lots of investment avenues available today in the financial market for an investor
with invest able surplus. He can invest in Bank deposits, corporate debentures, bonds etc.
where there is low risk but low returns also. He can also invest in Stock companies where the
risk is high and the returns are also proportionately high. The recent trends in the stock
market have shown that an average retail investor always lost with periodic bearish tends.
People began opting for portfolio managers with expertise in stock markets that would invest
on their behalf. Thus we had wealth management services provided by many institutions.
However they proved too costly for a small investor. These investor would found a good
shelter with the mutual funds.
Like most developed and developing countries the mutual fund cult has been catching on in
India. The reasons for this interesting occurring are :
 Mutual fund makes it easy and less costly for investors to satisfy their needs for
capital growth, income and/or income preservation.
 Mutual funds bring the benefits if diversification and money management to an

individual investor, providing an opportunity for financial success that was once
available only to a select few.

1.2 CONCEPT OF MUTUAL FUNDS
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 then invested in capital market
instruments such as shares, debentures and other securities. The income earned through these
investments and the capital appreciation realised are shared by its unit holders in proportion
to the number of units owned by them. 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 basket of securities at a relatively low cost.

CHAPTER – 2
COMPANY PROFILE

COMPANY PROFILE
Birla Sunlife Asset Managemet Company ltd.

Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment managers of
Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun
Life Financial Services Inc. of Canada. The joint venture brings together the Aditya Birla
Group's experience in the Indian market and Sun Life's global experience.
Established in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading
flagships of Mutual Funds business managing assets of a large investor base. Our solutions
offer a range of investment options, including diversified and sector specific equity schemes,
fund of fund schemes, hybrid and monthly income funds, a wide range of debt and treasury
products and offshore funds.
Birla Sun Life Asset Management Company has one of the largest team of research analysts
in the industry, dedicated to tracking down the best companies to invest in. BSLAMC strives
to provide transparent, ethical and research-based investments and wealth management
services.
BSLAMC is the 5th largest asset management company in India with domestic average assets
under management of Rs 63,696 Crores (US$14 billion) for the quarter, January – March
2011. An impressive mix of reach through 103 branches, wide range of product offerings
across equity, debt, balanced as well as structured asset classes and strong investment
performance has helped the company garner over 2.4 million investor scheme accounts.
Known for its consistent investment performance across asset classes, BSLAMC has received
recognitions from various institutes of international repute such as Lipper, Outlook Money
and The Asset magazine, Hong Kong.

Sun Life Financial
Sun Life Financial Inc is a leading international financial services organization providing a
diverse range of wealth accumulation and protection products and services to individuals and
corporate customers. Chartered in 1865, Sun Life Financial Inc and its partners today have
operations in key markets worldwide, including Canada, the United States, the United
Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.
We’re Sun Life. We’re a leading international financial services company, building on our
strengths for nearly 150 years.
We’ve known who we are from the dawn of our history, and it has served us well. After all
these years our commitment to our customers is unwavering. Our objective is to deliver the
best customer experience at every touch point, in every market in which we do business. We
want our customers to achieve the peace of mind that comes with a lifetime of financial
security. It’s at the centre of all we do.
Our mission, vision and values are the DNA of our organization. These commitments drive
us forward and touch every business decision. From our culture to the products and services
we offer around the globe – we are a company dedicated to our customers’ financial success.
Our mission is to help customers achieve lifetime financial security.
Our vision is to be an international leader in protection and wealth management.
10 | P a g e Indira Institute of Management, Pune

The Aditya Birla Group
A US $40 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is
anchored by an extraordinary force of over 136,000 employees belonging to 42 different
nationalities. The Group has been ranked Number 4 in the global ‘Top Companies for
Leaders’ survey and ranked Number 1 in Asia Pacific for 2011. ‘Top Companies for Leaders’
is the most comprehensive study of organisational leadership in the world conducted by Aon
Hewitt, Fortune Magazine, and RBL (a strategic HR and Leadership Advisory firm).
Over 50 per cent of the Aditya Birla Group’s revenues flow from its overseas operations. The
Group operates in 36 countries – Australia, Austria, Bangladesh, Brazil, Canada, China,
Egypt, France, Germany, Hungary, India, Indonesia, Italy, Ivory Coast, Japan, Korea, Laos,
Luxembourg, Malaysia, Myanmar, Philippines, Poland, Russia, Singapore, South Africa,
Spain, Sri Lanka, Sweden, Switzerland, Tanzania, Thailand, Turkey, UAE, UK, USA, and
Vietnam.
Vision
To be a leader and role model in a broad based and integrated financial services business.
Mission
To consistently pursue investor's wealth optimization by:
 Achieving superior and consistent investment results.
 Creating a conducive environment to hone and retain talent.
 Providing customer delight.
 Institutionalizing system-approach in all aspects of functioning.
 Upholding highest standards of ethical values at all times

The other businesses done by Aditya Birla Group are as follows under:
1. Aditya Birla Capital Advisors Private Limited

Aditya Birla Capital Advisors (ABCAP), incorporated in 2008, is committed to the business
of private equity advisory and investment management for Indian and off-shore investors.
Headquartered in Mumbai, ABCAP has a strong investment management team with diverse
experience in excess of 100 man-years across capital markets, investment management,
mergers and acquisitions, performance enhancement, organisational development and
shareholder value creation.
The core differentiator for the ABCAP team is its deep understanding of diverse businesses
across manufacturing and services, as also its expertise in delivering value-addition to the
portfolio companies through strategic advice and its vast network of contacts.
2. Aditya Birla Chemicals Limited (India)

Aditya Birla Chemicals (India) Limited (formerly Bihar Caustic and Chemicals Limited) was
incorporated as a joint venture of the Aditya Birla Group and the Bihar State Industrial
Development Corporation. The unit was set up with the objective of catering to the caustic
soda requirements of Hindalco Industries Limited, and to contribute towards the economic
development of the backward region of Palamu district in Jharkhand.
Commissioned in 1984 with an initial caustic soda capacity of 33,000tpa, the company has
since grown to become the leading caustic soda producer in the eastern region of the country.
The company had commissioned a 30mw captive power plant in the year 2000 and
simultaneously, the caustic plant capacity was enhanced to 51,048tpa. In the year 2006, the
capacity was increased to 78,750tpa by converting the mercury cell technology to the more
environment-friendly membrane cell technology supplied by world-renowned technology
supplier UHDENORA, Germany. Presently, the installed capacity stands at 105,000tpa.
For value addition and effective utilization of chlorine, the company has commissioned a
12,000tpa aluminums chloride plant in the year 2007 and a 17,500tpa stable bleaching
powder (SBP) plant in 2008. SBP is marketed under the brand name Shakti man. Aluminums
chloride is the principal catalyst used in the Friedel Craft reaction and widely used in
pharmaceuticals, chemical intermediates, agrochemicals, dyestuffs and pigments,

hydrocarbon resins, flavours and fragrances. SBP is used in textile mills for bleaching,
sanitation, sewage systems, tanning process, organic synthesis and other applications.
3. Aditya Birla Finance Limited

Aditya Birla Finance (ABF) is one of India's leading non-banking financial companies
(NBFC). Incorporated in 1991, the company is one of the largest players in security based
lending and the pioneer of IPO Financing in India. ABF offers specialised solutions in areas
of capital market and corporate finance.
The Capital Market Group offers its customers the best opportunity to meet their liquidity
requirements by providing finance for investments in the capital market.
The Corporate Finance Group deals with SMEs and large corporate clients and aims to
provide innovative and customized solutions to meet all their funding needs.
With a view to capitalize on the opportunities in the infrastructure, core and emerging sectors,
ABF has expanded its product suite to include project and structured finance solutions
catering primarily to the growing mid-market clients across the country. The company hopes
to contribute to the development of infrastructure facilities in the country, a key driver for
growth and development.
Through its financing solutions, Aditya Birla Finance enables its customers to pursue
ambitious growth strategies and execute value-creating transactions.
4. Aditya Birla Group Power Projects
a) Thermal and hydro power
The Power Business Group has been formed to explore emerging opportunities in the thermal
and hydro power sector through both greenfield and inorganic expansion.
The power sector is poised to grow significantly. India has an installed capacity of about 175
GW with thermal and hydro power contributing 65 percent and 22 percent respectively. The
balance is made up by renewables (10 percent) and nuclear (3 percent). It is estimated that the
generation capacity required in 2017 to sustain India's economic growth will be an additional

100 GW. Thus private sector contribution to meeting the nation's power needs is expected to
rise substantially.
The Aditya Birla Group is well-positioned to explore the potential of the sector with its large
installed base of captive power plants in various businesses and its exposure to mining.
b) Solar initiative
Renewable energy, especially solar energy, has been identified as a sunrise business
opportunity by the Aditya Birla Group.
The Government of India under the Jawaharlal Nehru National Solar Mission (JNNSM) has
set an aggressive target of 1,100 MW by 2013 (11th Five-Year Plan) and 20,000 MW by
2022 (13th Five-Year Plan). In addition, many state governments have announced state
policies on solar energy aided by the fledgling Renewable Energy Certificate (REC)
Government initiative. A total potential of 64,000 MW by 2022 is estimated by business
research analysts.
The solar team has evaluated the complete value chain of solar power, shortlisting the areas
that match our Group's interests. The team is currently focussed on the development of utility
scale solar power plants to position itself as an independent power producer (IPP) based on
photovoltaic (PV) technology. It is also currently participating in the development of a 5-MW
solar PV plant in Rajasthan, apart from various national and state government programmes to
develop multi-MW solar PV power plants.
Going forward, the team expects to play a significant role in shaping the country's solar
policies. Besides, the team is also eyeing the Group's internal requirement arising from the
Renewable Purchase Obligations (RPOs) of Group companies. Introducing solar power into
the Group's energy mix will provide focus on energy sustainability within the Group's
businesses.
c) Wind power
Essel Mining India Limited (EMIL) forayed into power generation in 2005 by installing 75-
MW windmills at Dhule in Maharashtra, demonstrating EMIL's commitment to the
environment and sustainable development. The division is registered with UNFCCC as a

'Clean Development Mechanism' (CDM) project under the Kyoto Protocol, which entitles it
to get carbon credit revenues for a period of 10 years.
5. Aditya Birla Insurance Brokers

Aditya Birla Insurance Brokers Limited (ABIB) is a leading composite general insurance
intermediary, licensed by the Insurance Regulatory and Development Authority of India
(IRDA). The company specialises in providing general insurance broking and risk
management solutions for corporates and individuals alike. The company also offers
reinsurance solutions to insurance companies and has developed strong relations with Indian
as well as global insurers operating in India and many others in South Asia, Middle East and
South East Asia.
ABIB aims to simplify the complex world of general insurance for its customers. It has
entered into strategic alliances with all the major insurance companies, and has access to the
best products and solutions in the general insurance market.
6. Aditya Birla Money

Aditya Birla Money is a single brand offering the combined products and services of Aditya
Birla Money Limited and Aditya Birla Money Mart Limited. Aditya Birla Money Limited is
a broking and distribution player, offering equity and derivative trading through NSE and
BSE and currency derivative on MCX-SX. It is registered as depository participant with both
NSDL and CDSL and also provides commodity trading on MCX and NCDEX through its
subsidiary company.
Aditya Birla Money Mart Limited is a wealth management and distribution player, offering
third party products like company deposits, mutual funds, insurance, structured products,
alternate investments, property services and has a premier wealth management service arm to
cater to HNI customers. These offerings are delivered through a strong pan India distribution
network of about 1000 own and franchisee branches, a robust online and offline model with a
strong technology backbone to a large customer base, in excess of 4 lakhs.
7. Aditya Birla Retail Limited

The Group's foray into the retail sector began in December 2006 when it acquired Trinethra, the
chain of stores based in south India. May 2007 saw Aditya Birla Retail Limited (ABRL) launch

their own brand of stores called 'More.' ABRL's vision is "to consistently provide the Indian
consumer complete and differentiated shopping experiences and be amongst India's top retailers
while delivering superior returns to all stakeholders".
Currently, there are over 513 supermarkets and 16 hypermarkets. All the supermarkets are
branded 'More.' and the hypermarkets are branded 'More Megastore'. The company has over
9,000 employees and has a pan-India presence. More. supermarkets are neighbourhood stores
with the core proposition of offering value, convenience and trust to the customers and averaging
2,500 sq ft area.
The hypermarkets are self-service super-stores offering value and range in food and non-food
products and services at a single location. Hypermarkets are located in large catchment areas and
encourage mass consumption with discount prices and substantial depth of assortment with an
average store size of 55,000 sq ft shopping area.
In May 2009 Aditya Birla Retail introduced a value proposition for its supermarkets and
encapsulated it into a promise of giving its customers "Hamesha Extra" which has resonated with
the consumer. "Hamesha Extra" is the core essence of More. It means customers will always feel
that they have got something extra while shopping at More.Within a short span of less than three
years, More. has a strong membership base of over 3 million members as part of its loyalty
program. More. has also launched a huge range of private labels in food and grocery, staples and
apparel which have already obtained a significant share of category as well as salience with the
consumer.Aditya Birla Retail Ltd was presented with the "Master Brand Award 2012" by the
World Brand Congress on 14th February 2012 in Mumbai.
The Master Brand Award is conferred upon those brands that appeal to a large set of consumers
from premium to mass while constantly keeping in mind a consumer centric approach.Aditya
Birla Retail Limited was presented the prestigious "Retail Best Employer of the Year" award by
the global jury of the Asia Retail Congress 2012 in Mumbai.
The Asia Retail Congress is Asia's single most important global platform to promote world-class
retail practices. These awards are aimed at honouring the best, in the Asian retail scenario. The
Asia Retail Congress is represented by 100 countries across the world.
There are many more sectors and businesses are there where Aditya Birla Group is present to
serve their best to their customers and consumers.

 Aditya Birla Group – The Global Scenario
Around the world, we're known for:
 A metals powerhouse, among the world’s most cost-efficient aluminium and copper
producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three
biggest producers of primary aluminium in Asia with the largest single location copper
smelter
 No.1 in viscose staple fibre
 No.1 in carbon black
 The fourth-largest producer of insulators
 The fifth-largest producer of acrylic fibre
 Among the top 10 cement producers
 Among the best energy-efficient fertiliser plants
 The largest Indian MNC with manufacturing operations in the USA
 Aditya Birla Group – The Indian Scenario

In India, here’s what we have accomplished:
 The largest fashion (premium branded apparel) and lifestyle player

 The second-largest manufacturer and largest exporter of viscose filament yarn
 The largest producer in the chlor-alkali sector
 Among the top three mobile telephony companies
 A leading player in life insurance and asset management
 Among the top two supermarket chains in the retail business
 Among the top 6 BPO companies
 The largest manufacturer of linen fabric
Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not
come in the way of the need to keep learning afresh, to keep experimenting.

 Aditya Birla Group – Beyond Business
 Works in 3,000 villages

 Reaches out to seven million people, annually, through the Aditya Birla Centre for
Community Initiatives and Rural Development spearheaded by Mrs. Rajashree Birla
 Focuses on healthcare, education, sustainable livelihood, infrastructure and espousing social
reform in India, Brazil and Egypt, as well as Philippines, Thailand, Laos, Indonesia, Korea
and other Asian countries
 In India:
 The Aditya Birla Group runs 42 schools, which provide quality education to 45,000 children.
Of these 18,000 students belong to the underprivileged segment. Merit scholarships are given
to an additional 8,500 children from the interiors.
 The 18 hospitals run by the Aditya Birla Group tend to more than a million villagers.
 In line with its commitment to sustainable development, the Aditya Birla Group has partnered
with Columbia University in establishing the Columbia Global Centre’s Earth Institute in
Mumbai.
 The idea of embedding CSR as a way of life in organisations has led to the setting up of the
FICCI – Aditya Birla CSR Centre for Excellence, in Delhi.
The Aditya Birla Group transcends the conventional barriers of business because we believe
it is our duty to facilitate inclusive growth.

 Mission , Vision and Values
Our Vision
To be a premium global conglomerate, with a clear focus on each of the businesses.
Our Mission
To deliver superior value to our customers, shareholders, employees and society at large.
Our Values
 Integrity : Acting and taking decisions in a manner that is fair and honest. Following the
highest standards of professionalism and being recognised for doing so. Integrity for us
means not only financial and intellectual integrity, but encompasses all other forms as are
generally understood.
 Commitment : On the foundation of Integrity, doing all that is needed to deliver value to all
stakeholders. In the process, being accountable for our own actions and decisions, those of
our team and those in the part of the organisation for which we are responsible.
 Passion : An energetic, intuitive zeal that arises from emotional engagement with the
organisation that makes work joyful and inspires each one to give his or her best. A
voluntary, spontaneous and relentless pursuit of goals and objectives with the highest level of
energy and enthusiasm.

 Seamlessness : Thinking and working together across functional groups, hierarchies,
businesses and geographies. Leveraging diverse competencies and perspectives to garner the
benefits of synergy while promoting organisational unity through sharing and collaborative
efforts.
 Speed : Responding to internal and external customers with a sense of urgency. Continuously
striving to finish before deadlines and choosing the best rhythm to optimise organisational
efficiencies.

CHAPTER-3
PRODUCT PROFILE

PRODUCT PROFILE
The financial services industry has witnessed its greatest challenges since the Great
Depression, due to the bursting of the housing bubble and the resulting credit crunch. Within
a period of weeks, venerable institutions have been brought to their knees by dysfunctional
credit markets and the punishing stock market. The U.S. and European governments, as well
as Japan, have pumped liquidity into the system and taken on direct capital investments in
these financial behemoths, in an effort to stabilize credit markets and prevent a global
economic meltdown.The industry comprises complex networks of organizations, which
primarily deal with management of money and create conditions for investors and
corporations to flourish in the market. The growth of other sectors is closely dependent on
this industry as it is a prime source of liquidity and thereby ensures the overall prosperity and
economic stability. This multi-trillion dollar services industry comprises companies varying a
great deal in size and their offerings as well. The industry grouping is widely branched out to
include companies providing varied services, preventing a simple categorization of this
industry.
3.1 What is Mutual Funds?
Mutual fund is the pool of the money, based on the trust who invests the savings of a number
of investors who shares a common financial goal, like the capital appreciation and dividend
earning. The money thus collect is then invested in capital market instruments such as shares,
debenture, and foreign market. Investors invest money and get the units as per the unit value
which we called as NAV (net assets value). Mutual fund is the most suitable investment for
the common man as it offers an opportunity to invest in diversified portfolio management,
good research team, professionally managed Indian stock as well as the foreign market, the
main aim of the fund manager is to taking the scrip that have under value and future will
rising, then fund manager sell out the stock. Fund manager concentration on risk – return
trade off, where minimize the risk and maximize the return through diversification of the
portfolio. The most common features of the mutual fund unit are low cost.

3.2 Organizational Structure of Mutual Funds:
Mutual funds have organization straucture as per ther Security Exchange Board of India
guideline, Security Exchange Board of India specified authority and responsibility of Trustee
and Aeest Management Companies. The objectives is to controlling, to promoted, to regulate,
to protected the investors right and efficient trading of units. Operation of Mutual fund start
with investors save their money on mutual fund, than Mutual Fund manager handling the
funds and strategic investment on scrip. As per the objectives of particular scheme manager
selected scrips. Unit value will become high when fund manager investment policy generate
the return on capital market. Unit return depends on fund return and efficient capital market.
Also affects international capital market, liquidity and at last economic policy. Below the
graph indicates how the process was going on to investors to earn returns. Mutual fund
manager having high responsibility inside of return and how to minimize the risk. When fund
provided high return with high risk, investors attract to invest more fund for same scheme.

3.3 History Mutual Fund In India
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 of India. The history of mutual
funds in India can be broadly divided into four distinct phases
FIRST PHASE – 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. 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.6,700 crores of assets under management.
SECOND PHASE – 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up 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 Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund
(Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund
in December 1990.
At the end of 1993, the mutual fund industry had assets under management of Rs.47,004
crores.
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 into being, under which all mutual funds,
except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged
with Franklin Templeton) was the first private sector mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. 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 total assets of
Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under
management was way ahead of other mutual funds.
FOURTH PHASE – Since February 2003
In 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 crores 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 an administrator and
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, 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 growth.
3.4 SEBI Regulations

An index fund scheme’ means a mutual fund scheme that invests in securities in the same
proportion as an index of securities;” A mutual fund may lend and borrow securities in

accordance with the framework relating to short selling and securities lending and borrowing
specified by the Board.”A mutual fund may enter into short selling transactions on a
recognized stock exchange, subject to the framework relating to short selling and securities
lending and borrowing specified by the Board.” “Provided that in case of an index 13
fund scheme, the investment and advisory fees shall not exceed three fourths of one percent
(0.75%) of the weekly average net assets.“
“Provided further that in case of an index fund scheme, the total expenses of the scheme
including the investment and advisory fees shall not exceed one and one half percent (1.5%)
of the weekly average net assets.” Every mutual fund shall buy and sell securities on the
basis of deliveries and shall in all cases of purchases, take delivery of relevant securities and
in all cases of sale, deliver the securities: Provided that a mutual fund may engage in short
selling of securities in accordance with the framework relating to short selling and securities
lending and borrowing specified by the Board: Provided further that a mutual fund may enter
into derivatives transactions in a recognized stock exchange, subject to the framework
specified by the Board.”
3.5 SEBI GUIDELINE OF MUTUAL FUNDS
SEBI Regulation Act 1996

Establishment of a Mutual Fund:
In India mutual fund play the role as investment with trust, some of the formalities laid down by
the SEBI to be establishment for setting up a mutual fund. As the part of trustee sponsor the
mutual fund, under the Indian Trust Act, 1882, under the trustee company are represented by a
board of directors. Board of Directors is appoints the AMC and custodians. The board of trustees
made relevant agreement with AMC and custodian. The launch of each scheme involves inviting
the public to invest in it, through an offer documents. 17
Depending on the particular objective of scheme, it may open for further sale and repurchase of
units, again in accordance with the particular of the scheme, the scheme may be wound up after
the particular time period.
1. The sponsor has to register the mutual fund with SEBI
2. To be eligible to be a sponsor, the body corporate should have a sound track record and a
general reputation of fairness and integrity in all his business transactions.
Means of Sound Track Records
The body corporate being in the financial services business for at least five years
Having a positive net worth in the five years immediately preceding the application of
registration.
Net worth in the immediately preceding year more than its contribution to the capital of the
AMC.
Earning a profit in the three out of the five preceding years, including the fifth year.
3. The sponsor should hold at least 40% of the net worth of the AMC.
4. A party which is not eligible to be a sponsor shall not hold 40% or more of the net worth
of the AMC.

5. The sponsor has to appoint the trustees, the AMC and the custodian.
6. The trust deed and the appointment of the trustees have to be approved by SEBI.
7. An AMC or its officers or employees can not be appointed as trustees of the mutual fund. 18
8. At least two thirds of the business should be independent of the sponsor.
9. Only an independent trustee can be appointed as a trustee of more than one mutual fund, such
appointment can be made only with the prior approval of the fund of which the person is already
acting as a trustees.
LAUNCHING OF A SCHEMES
Before its launch, a scheme has to be approved by the trustees and a copy of its offer documents
filed with the SEBI.
1. Every application form for units of a scheme is to be accompanies by a memorandum

containing key information about the scheme.
2. The offer document needs to contain adequate information to enable the investors to make
informed investments decisions.
3. All advertisements for a scheme have to be submitted to SEBI within seven days from the
issue date.
4. The advertisements for a scheme have to disclose its investment objective.
5. The offer documents and advertisements should not contain any misleading information or any
incorrect statement or opinion.
6. The initial offering period for any mutual fund schemes should not exceed 45 days, the only
exception being the equity linked saving schemes.

7. No advertisements can contain information whose accuracy is dependent on assumption.
19
8. An advertisement cannot carry a comparison between two schemes unless the schemes are
comparable and all the relevant information about the schemes is given.
9. All advertisements need to carry the name of the sponsor, the trustees, the AMC of the fund.
10. All advertisements need to disclose the risk factors.
11. All advertisements shall clarify that investment in mutual funds is subject to market risk and
the achievement of the fund’s objectives cannot be assured.
12. When a scheme is open for subscription, no advertisement can be issued stating that the
scheme has been subscribed or over subscription.
3.6 Role of AMFI
The Association of Mutual Funds in India (AMFI) is dedicated to developing the Indian
Mutual Fund Industry on professional, healthy and ethical lines and to enhance and maintain

standards in all areas with a view to protecting and promoting the interests of mutual funds
and their unit holders.
AMFI working group on Best Practices for sales and marketing of Mutual Funds under the
Chairmanship of Shri B. G. Daga, Former Executive Director of Unit Trust of India with Shri
Vivek Reddy of Pioneer ITI, Shri Alok Vajpeyi of DSP Merrill Lynch, Shri Nikhil Khattau of
Sun F & C and Shri Chandrasekhar Sathe, Formerly of Kotak Mahindra Mutual Fund has
suggested formulation of guidelines and code of conduct for intermediaries and this work has
been ably done by a sub-group consisting of Shri B. G. Daga and Shri Vivek Reddy.
3.7 TYPES OF MUTUAL FUNDS IN INDIA
Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position,
risk tolerance and return expectations etc. The table below gives an overview into the

existing types of schemes in the Industry. There are basically categories types of mutual
funds are there they are as follows:
 BY STRUCTURE
 OPEN ENDED SCHEMES
 CLOSE ENDED SCHEMES
 INTERVAL SCHEMES
 BY INVESTMENT OBJECTIVE
 GROWTH SCHEMES
 INCOME SCHEMES
 BALANCED SCHEMES
 MONEY MARKET SCHEMES
 OTHER SCHEMES
 TAX SAVING SCHEMES

 SPECIAL SCHEMES
o INDEX SCHEMES
o SECTOR SPECIFIC SCHEME
 BY STRUCTURE
OPEN ENDED SCHEME: are the mutual funds in which the investors can buy
units from the fund house at any given time. There is no lock in period and they can

redeem their units anytime as well.
CLOSE ENDED SCHEME: can be bought in the initial offer period or through the
stock exchange only when another investor wants to sell these units. The fund house
is not allowed to issue more units. There is a lock in period as well specified by the
fund, if you decide to sell within that period there are exit charges levied. Post
completion of the lock in period, the fund is usually converted into an open ended
scheme.
INTERVAL SCHEMES: A fund that combines the features of open-ended and

closed-ended schemes, making the fund open for sale or redemption during pre-
determined intervals. In other words, this is a mutual fund with redemption features in
between those of closed-end and open-end fund
 BY INVESTMENT OBJECTIVE
GROWTH SCHEMES: Growth Schemes are also known as equity schemes. The
aim of these schemes is to provide capital appreciation over medium to long term.
These schemes normally invest a major part of their fund in equities and are willing
to bear short-term decline in value for possible future appreciation.
INCOME SCHEMES: These schemes invest primarily in fixed income instruments

issued by the government, banks, financial institutions and private companies. The
main objective of income schemes is preservation of capital and to provide fixed
income over the medium to long term.
BALANCED SCHEMES: Such funds have a balanced portfolio and invest in equity
and preference shares in addition to fixed income securities. The aim of such funds is

to provide both income and capital appreciation over a long-term.
MONEY MARKET SCHEMES: Money market schemes invest in short-term debt

instruments, which earn interest and have high liquidity. Though these are considered
to be the safest investment option, such funds are subject to fluctuations in the rates
of intere
 OTHER SCHEMES
TAX SAVING SCHEMES: Such schemes are aimed at offering tax rebates to
investors under specific provisions of the Income Tax Act, 1961. For instance,
investors of Equity Linked Savings Schemes (ELSS) and Pension Schemes are
applicable for deduction u/s 88 of the Income Tax Act, 1961.
INDEX SCHEMES: Such funds strive to mirror the performance of specific market
indices, such as the BSE SENSEX, CNX Nifty, etc which are called the base index.
Investments in such funds are made in the same stocks as the base index and in
similar proportion.
SECTOR SPECIFIC SCHEMES: Such funds invest in a specific industry or sector.

The investments could be in a particular industry (Banking, Pharmaceuticals,
Infrastructure, etc) or a group of industries, or various segments (like ‘A’ Group
shares).
3.8 Types of investment in Mutual Fund
1. Lump Sum.

2. Systematic Investment Plan.
 Lump Sum
A one-time payment for the total or partial value of an asset. A lump sum investment is
usually taken in lieu of recurring payments that would otherwise be received over a period of
time. The value of a lump sum payment is generally less than the sum of all payment that the
party would otherwise receive, since the party paying the lump sum payment is being asked
to provide more funds upfront than it otherwise would have been required toe. Therefore, In
lump sum the investment is only one time that is of Rs. 5,000, and if the investment is
monthly then the investment will be Rs. 6,000.
A lump sum or capital investment is when you have a surplus of cash that has accumulated
either on deposit or through annual bonuses, that you would like to place into the global
capital markets. Speaking with an advisor will give you access to solutions and information
about the latest market trends, make sure you are able to maximize growth and returns in a
wide range of markets, and new areas of investment.
 Systematic Investment Plan (SIP)
A Systematic Investment Plan (SIP) is a vehicle offered by mutual funds to help investors
save regularly. It is just like a recurring deposit with the post office or bank where you put in
a small amount every month, except the amount is invested in a mutual fund. The minimum

amount to be invested can be as small as 100 (100 Indian Rupees) and the frequency of
investment is usually monthly or quarterly.
A SIP allows investment in the stock market without trying to second-guess its movements. It
is also known as dollar cost averaging.
A SIP means the person commits to investing a fixed amount every month. Let's say it is
1,000. When the Market price of shares fall, the investor benefits by purchasing more units;
and is protected by purchasing less when the price rises. Thus the average cost of units is
always closer to the lower end.) NAV : Net Asset Value, or the price of one unit of a fund.
Can be computed as follows : NAV = [ market value of all the investments in the fund +
current assets + deposits - liabilities ] divided by the number of units outstanding.}
INSTRUMENT RETURN SAFETY VOLATILITY LIQUIDITY

EQUITY HIGH LOW HIGH HIGH/LOW
BONDS MODERATE HIGH MODERATE MODERATE
DEBENTURES MODERATE MODERATE MODERATE LOW
B. DEPOSITS LOW HIGH LOW HIGH
3.9 Products & Services of BSLAMC

Birla Sunlife Asset Management Co Ltd. Deals in the mutual funds of India and different
schemes the schemes and funds in which the company deals are as follows under:

Schemes
GROWTH SCHEMES BALANCED SCHEMES
FUND OF FUND SCHEMES INCOME SCHEMES
Funds under these schemes:
 GROWTH SCHEMES: The products/ funds under growth schemes provided by

(ABAMCL) are as under:
 BSL ADVANTAGE FUND

 BSL DIVIDEND YIELD FUND
 BSL MIDCAP FUND
 BSL MNC FUND
 BSL INDIA OPPORTUNITY FUND
 BSL INFRASTRUCTURE FUND
 BSL GEN-NEXT FUND
 BSL INDEX FUND
 BSL TOP 100 FUND
 BSL EQUITY FUND
 BSL FRONT LINE EQUITY
 BSL BUY INDIA FUND
 BSL NEW MILLENIUM FUND
 BSL INTERNATIONAL EQUITY
 BSL SPECIAL SITUATIONS FUND
 BSL COMMODITY EQUITY FUND
 BSL ENHANCED ARBITRAGE FUND
 BSL TAX PLAN
 BSL TAX RELIEF’96 FUND
 BSL SMALL AND MIDCAP FUND

 BSL PIRE VALUE FUND
 BSL INDIA REFORMS FUND
 BSL LONG TERM ADVANTAGE FUND
 BALANCED SCHEMES: The products / funds under balanced schemes provided

by (ABASML) are as under:
 BSL ’95 FUND
 FUND OF FUND SCHEMES: The products / funds under fund of fund schemes
provided by (BSLAMC) are as under:
 BSL ASSET ALLOCATION FUND

 BSL GOLD FUND
 INCOME SCHEME: The products / funds under income schemes provided by

(BSLAMC) are as under:
 BSL MIP
 BSL MIP II
 BSL MONTHLY INCOME
 BSL INCOME PLUS
 BSL SHORT TERM FUND
 BSL GIFT PLUS
 BSL DYNAMIC BOND FUND
 BSL GOVERNMENT SECURITIES FUND
 BSL SAVINGS FUND
 BSL MEDIUM TERM FUND
 BSL FLOATING FUND
3.10ADVANTAGES OF MUTUAL FUNDS
If mutual funds are emerging as a favourite investment vehicle, it is because of many

advantages they have over other forms and the avenues invests particularly for the investor

who has limited sources available in terms of capital etc. The following are the major
advantages of mutual funds to all investors:
 PORTFOLIO DIVERSIFICATION
 PROFESSIONAL MANAGEMENT
 REDUCTION/DIVERSIFICATION OF RISK
 REDUCTION OF TRANSACTION COST
 CONVENIENCE AND FLEXIBILITY
 TAX BENIFITS
 CHOICE OF SCHEMES
 LIQUIDITY
3.10.1 DISADVANTAGES MUTUAL FUNDS
 NO CONTROL OVER COST

 NO TAILOR-MADE PORTFOLIO
 DILLUTION
 BURRIED COST
 THE WISDOM OF PROFESSIONAL MANAGEMENT

Chapter 4
LITREATURE REVIEW
4.1 Literature Review
A large number of studies on the growth and financial performance of mutual funds have
been carried out during the past, in the developed and developing countries. Brief reviews of

the following research works reveal the wealth of contributions towards the performance
evaluation of mutual fund, market timing and stock selection abilities of fund Managers.
In India, one of the earliest attempts was made by National Council of Applied Economics
Research (NCAER) in 1964 when a survey of households was undertaken to understand the
attitude towards and motivation for savings of individuals. Another NCAER study in 1996
analyzed the structure of the capital market and presented the views and attitudes of
individual shareholders. SEBI – NCAER Survey (2000) was carried out to estimate the
number of households and the population of individual investors, their economic and
demographic profile, portfolio size, and investment preference for equity as well as other
savings instruments. Data was collected from 30,00,000 geographically dispersed rural and
urban households. Some of the relevant findings of the study are : Households preference for
instruments match their risk perception; Bank Deposit has an appeal across all income class;
43% of the non-investor households equivalent to around 60 million households apparently
lack awareness about stock markets; and, compared with low income groups, the higher
income groups have higher share of investments in Mutual Funds signifying that Mutual
funds have still not become truly the investment vehicle for small investors.
4.1 HOW MUTUAL FUND WORKS ?

4.2 WHO SHOULD BUY MUTUAL FUNDS

THOSE WHO WISH TO CLOSELY TRACK THEIR INVESTMENT:
Mutual fund takers to closely monitor their portfolio. They also offer the flexibility to switch
your capital funds with varying risk return profiles.
INDIVIDUALS WITH SHORT TO LONG TERM INVESTMENT HORIZON:
Mutual Funds investment for both types of investors who wish to invest for short or long term
purpose.
INVESTORS ACROSS ALL LIFE STAGES:
The mutual fund investment offers a variety of schemes which can be opted for depending
upon the life stage you are in and your needs and financial liabilities at that point in time.
FIRST CHOICE FOR SMALL INVESTORS:
Small investors are ill equipped to make such a decision. Even if investors are sought to be
protected by restricting the incentive to investment made in bluechips, they could do with
added protection of professional fund managements. MF’s might lag their benchmark indices
but they are hardly any funds where investors have lost all capital. The aim of the scheme is
to incentivise small investors to enter the stock market by giving them a 50% tax break on
their investments up to Rs. 50,000.
HIGH RISKS LEAD TO HIGH RETURNS!
Mutual Funds in a variety of financial instruments such as equities, debt, government

securities to name a few. The values of there investments could fluctuate there by influencing
your Mutual Fund NAV, but since the risk is spread among a large pool of individuals, you
individually take on low risk through diversification and take in high returns.
4.3 How to choose a Mutual Fund?

The wide range of Mutual Fund available in the market might make it difficult for a cosumer
to choose the correct Mutual Fund. However if you were to follow a few simple steps
choosing the right Mutual Fund can be a smooth process.
UNDERSTAND THE CONCEPT OF MUTUAL FUND THOROUGHLY:

Do your homework well and read as much as you can about Mutual Fund as you can before
investing. Read the literature available on Mutual Fund on the websites and broachers
circulated by stock broking firms. This will help you to know the benefits and structure of the
Mutual Fund.
FOCUS ON YOUR RISK REQUIREMENTS AND RISK PROFILE:

Identify a plan that is best suited for your keeping in mind your risk appetite.
EXAMINE THE PERFORMANCE OF THE PLAN:

Compare the performance of the plan with benchmark indices like BSE sensex or Nifty in the
past two or three years to get a better idea about the performance. Ensure that you can easily
get about your NAV when you need it. Thoroughly understand the flexibility and redemption
condition of a Mutual fund.
UNDERSTAND THE CHARGES LEVIED ON THE PRODUCT:

Understand all the charges levied on the product over its tenure, not just the initial charges. A
complete charge structure would include the initial charges, the fixed administrative and fund
management charges.
COMPARE ONE COMPANY MUTUAL FUND WITH OTHER COMPANY:

Compare products of different Mutual Fund companies in terms of premium, payment, and
cost structure, performance of the scheme, additional facilities.
KNOW ABOUT YOUR COMPANY:

Last but not the least insure with a brand you can trust to honour its commitment and service
in accordance to your requirements.
4.4 Importance of Mutual Fund

Small investors face a lot of problems in the sharemarket, limited resources, lack of
professional advice, lack of information etc. Mutual funds have come as a much needed help
to these investors. It is a special type of institutional device or an investment vehicle through
which the investors pool their savings which are to be invested under the guidance of a team
of experts in wide variety of portfolios of corporate securities in such a way, so as to
minimise risk, while ensuring safety and steady return on investment. It forms an important
part of the capital market, providing the benefits of a diversified portfolio and expert fund
management to a large number, particularly small investors. Now a days, mutual fund is
gaining its popularity due to the following reasons :
l. With the emphasis on increase in domestic savings and improvement in deployment of

investment through markets, the need and scope for mutual fund operation has increased
tremendously. The basic purpose of reforms in the financial sector was to enhance the
generation of domestic resources by reducing the dependence on outside funds. This calls for
a market based institution which can tap the vast potential of domestic savings and channelize
them for profitable investments. Mutual funds are not only best suited for the purpose but
also capable of meeting this challenge.
2. An ordinary investor who applies for share in a public issue of any company is not
assured of any firm allotment. But mutual funds who subscribe to the capital issue made by
companies get firm allotment of shares. Mutual fund latter sell these shares in the same
market and to the Promoters of the company at a much higher price. Hence, mutual fund
creates the investors confidence.
3. The psyche of the typical Indian investor has been summed up by Mr S.A. Dave,
Chairman of UTI, in three words; Yield, Liquidity and Security. The mutual funds, being set
up in the public sector, have given the impression of being as safe a conduit for investment as
bank deposits. Besides, the assured returns promised by them have investors had great appeal
for the typical Indian investor.

4. As mutual funds are managed by professionals, they are considered to have a better
knowledge of market behaviours. Besides, they bring a certain competence to their job. They
also maximise gains by proper selection and timing of investment.
5. Another important thing is that the dividends and capital gains are reinvested
automatically in mutual funds and hence are not fritted away. The automatic reinvestment
feature of a mutual fund is a form of forced saving and can make a big difference in the long
run.

CHAPTER-5
SCOPE OF WORK &
METHEDOLOGY

5.1 Scope of Work
The main scope of doing this work to know about Mutual Funds and its functioning. This
helps to know in details about Mutual Fund industry right from its inception stage, growth
and future prospects and to know the awareness of the Mutual Funds available and their
benefits for the future.
It also helps in understanding different schemes of Mutual Funds, because my study is
depends upon prominent funds in India and their schemes like Equity, Income, Balance as
well as returns associated with those schemes.
Ultimately the scope of this work/project is to understanding the benefits of mutual funds to
investors.
Place/Area of Work/Study:
The area of study/work was carried out in Pune, (M.H). It includes all major competitors and
also the customers of Mutual Funds, and the survey was carried out.
Time of Work/Study:
The study was completed within a span of two months.

5.2 Objectives of Study
 To give a brief idea about benefits available from Mutual Fund Investments.
 To give an idea of types of schemes available.
 To discuss about market trends of Mutual Funds.
 To study some of Mutual Fund Schemes.
 To study some of Mutual Funds Co. and their Funds.
 Observe the Fund Management process of Mutual Funds.
 To give an idea about regulations of Mutual Funds.

5.3 Research Methodology
The research is defined as a systematic and objective process of gathering, recording and
analysing data for aid in marking business decisions. It connotes patient study and scientific
investigation wherein the researcher takes another, more careful look at the data to discover
all that can be known about the subject to study.
5.3.1 OBJECTIVE OF THE RESEARCH
 To give a brief idea about the benefits available from mutual fund investment.
 To give an idea of types of schemes available.
 To discuss about the market trends of Mutual Funds Investment.
 To study some of the Mutual Funds Schemes.
 To study some Mutual Fund companies and their Funds..
 To give an idea about the regulations of Mutual Funds.
The design of this research study based on the purpose of the study which is to gain in depth
knowledge of mutual funds and other products of Birla Sun life. The information gathered
from secondary data sources like company’s website and pamphlets issued by the company.

5.3.2 RESEARCH DESIGN
Research design is a arrangement of condition of collection and analysis of data in manner

that aims to combine relevance to the research purpose with the economy and procedure.
Research design is important primarily because of the increased complexity in the market as
well as marketing approaches available to researcher. A research design specifies the
methods and procedures for conducting a particular study.
TYPE OF RESEARCH
 Descriptive Research
As the title suggest, this research will map the comparative analysis of mutual funds. It
analyses the clients, their subject knowledge and comes up with the business potential in
the same, the research can be termed as a “Descriptive” type of research.
5.3.3 SAMPLE DESIGN
Sample Universe All the holders of Mutual Funds in

Pune.
Sample Frame All the holders of BSL-MutualFund in

Pune.
Sample Size 100 Customers
Sampling Method Non-Probability

5.3.4 SOURCES OF DATA COLLECTION
 Primary Data
 Secondary Data
Primary Data: The primary data is a first-hand data which is collected by doing survey,
filling questionnaires, by interviewing or by the field work etc. It is a raw data which is
collected by the surveyors or the researchers.
Secondary Data: The Secondary data is a readymade data which provides the information
that is not be obtained by any agencies. The secondary data is available from publication, in
house database, research agencies, universities etc.
Sources of Data Collection Tools of Data Collection
Primary Data Data collected by filling & interviewing

Questionnaire.
Data collected by Websites, Books,

Secondary Data Broachers, etc.

CHAPTER-6
LIMITATIONS

6.1 Limitations of Study
 The time limit for this research was two months.
 The customers have a lesser knowledge regarding funds.
 The area for the study was limited.
 The companies selected from this sector were restricted to designated customers.
 The research was limited to Mutual Funds company.

CHAPTER- 7
DATA ANALYSIS &
INTERPRETATION

Q-1- DO YOU KNOW, WHAT IS MUTUAL FUND?
TABLE:1
OPTIONS ANSWERS
YES 95
NO 05
TOTAL 100
FIGURE:1
100
90
80
70
60
50
95%
40
30
20
10
5%
0
YES NO

PURPOSE:
To know that how many peoples are aware of Mutual Funds?
INTERPRETATION:
From the above Chart, it is clear that 95% of the people are aware of Mutual Funds, and
remaining 5% are yet not aware of Mutual Funds in Pune.

Q-2 IS MUTUAL FUND ALWAYS RISK FREE?
TABLE:2
OPTIONS ANSWERS
YES 63
NO 37
TOTAL 100
FIGURE:2
37%
YES
NO
63%

PURPOSE:
The main purpose of asking this question to the customers is to know whether they are aware
of the risk factors of Mutual Funds or not.
INTERPRETATION:
We know that Mutual Funds are risk free. According to the above pie chart we came to know
that the 63% of the people who knows what is mutual fund are aware that the mutual funds
are risk free, but remaining 37% don’t know it is risk free or not.

Q-3 DO YOU WANT TO INVEST YOUR MONEY INTO MUTUAL FUNDS?
TABLE: 3
OPTIONS ANSWERS
YES 78
NO 22
TOTAL 100
FIGURE: 3
90
80 78%
70
60
50
40
30
22%
20
10
0
0.8 1 1.2 1.4 1.6 1.8 2 2.2

PURPOSE:
The main purpose of asking this question was to know that the people wants to invest their
money in Mutual Funds or not.
INTERPRETATION:
As shown in the above ball chart 78% of the people wants to invest their money in mutual
funds because they have interest in mutual funds, and their interest decreased in equity
market as they know that in this field, risk is low as compare to share market.

Q-4 IF YES, WHICH MUTUAL FUND COMPANY WILL YOU PREFERS?
TABLE: 4
OPTIONS ANSWERS
BIRLA SUN LIFE MF 53
RELIANCE MF 37
OTHERS 10
TOTAL 100
FIGURE:4
10%
BIRLA SUN LIFE

RELIANCE MF
OTHERS
53%
37%

PURPOSE:
The main purpose of this question is to know about the preferences of the Mutual Fund
company preferred by them on the basis of returns liquidity and growth.
INTERPRETATION:
From the above chart, which is according to the primary data collected, cleary shows that
“Preference of the investors are based on the high returns, liquidity, and growth of fund” i.e.
investors gives their preferences to that fund which gives them high returns 53% investors
like to invest in BSL MF, 37% likes Reliance MF and remaining 10% gives preference to
others.

Q-5 AMONG THE FOLLOWING WHICH AMC IS BETTER IN TERMS OF
PRODUCT?
TABLE: 5
OPTIONS ANSWERS
BIRLA SUN LIFE AMC 47
RELIANCE AMC 30
OTHER AMC’S 23
TOTAL 100
FIGURE: 5
50
45
40
35
30
25
47%
20
15 30%
23%
10
0
BIRLA SUN LIFE AMC RELIANCE AMC OTHER AMC'S

PURPOSE:
The main purpose of asking this question with the customers is know which AMC is better in
terms of their products.
INTERPRETATION:
47% of the people think that the BIRLA SUNLIFE AMC is the best option when it becomes to
the diversified products followed by 30% for RELIANCE AMC & 23% others.

Q-6 WHICH FUND HOSUE (AMC) IS BETTER IN TERMS OF PERFORMANCE IN
LONG AND SHORT RUN?
TABLE: 6
OPTIONS ANSWERS
BIRLA SUNLIFE AMC 41
RELIANCE AMC 33
OTHER AMC’S 26
TOTAL 100
FIGURE: 6
26%
41%
BIRLA SUNLIFE AMC
RELIANCE AMC
OTHER AMC'S
33%

PURPOSE:
This question helps us to know about the better AMC’s in terms of long and short run.
INTERPRETATION:
41% people think that BIRLA SUNLIFE AMC provides best returns in short and long run
followed by 33% for RELIANCE AMC & 26% others.

Q-7 HOW MANY MUTUAL FUNDS DO YOU HAVE?
TABLE: 7
OPTIONS ANSWERS
ONE 59
TWO 30
MORE THAN TWO 11
TOTAL 100
FIGURE: 7
70
60 59%
50
40
30 30%
20
10 11%
0
ONE TWO MORE THAN TWO

PURPOSE:
The purpose of asking this question to the investors is know about the investing capabilities
of themselves.
INTERPRETATION:
According to the above chart we came to know that there are 59% of the investors have
invested only in one mutual fund, followed by 30% for two mutual funds & rest 11% have
more than two mutual funds.

Q-8 WHICH AMC PROVIDES BETTER SERVICES?
TABLE: 8
OPTIONS ANSWERS
BIRLA SUNLIFE AMC 67
RELIANCE AMC 21
OTHER AMC’S 12
TOTAL 100
FIGURE: 8
70
60
50
40
30
67%
20
21%
10 12%
0
BIRLA SUNLIFE AMC RELIANCE AMC OTHER AMC

PURPOSE:
The purpose of asking this to the customers is to know that which AMC is better service
provider.
INREPRETATION:
From the above chart we can interpretate that 67% of the investors feels BIRLA SUNLIFE
AMC provides better services as compared to RELIANCE & others.

Q-9- DO YOU HAVE BIRLA SUN LIFE MUTUAL FUND?
TABLE: 9
OPTIONS ANSWERS
YES 63
NO 37
TOTAL 100
FIGURE: 9
37%
YES
NO
63%

PURPOSE:
Asking this question to the people helps us to know that how many people having Mutual
Funds.
INTERPRETATION:
63% of respondents said that thaey have BIRLA SUN LIFE’S mutual funds,& followed by
37% said that they don’t have Birla sun life’s mutual fund.

Q-10 ARE YOU SATISFIED WITH THE SERVICES PROVIDED BY BSLAMC?
TABLE: 10
OPTIONS ANSWERS
YES 93
NO 07
TOTAL 100
FIGURE: 10
7%
YES
NO
93%

PURPOSE:
This question was asked to customers to know whether they are satisfy with the services of
BSLAMC or not.
INTERPRETATION:
93% customers of BSLAMC’s are satisfied with the services provided by them and the rest
7% are not satisfied. Customers of today are better educated, better informed, more
discriminating, more sophisticated and are more individualistic.

CHAPTER-8
FINDINGS

8.1 FINDINGS
 A lot of people know about mutual funds as they take it as equities in stock market.
 Some of the respondents are not willing to invest their money in mutual funds,
because they don’t know the difference between horizon of risk in share market and
mutual funds.
 Most of the respondents are willing to invest their funds in mutual funds because they
know that mutual funds are less risky as compared to equities.
 Most of the respondents believe that BIRLA SUN LIFE mutual fund’s performance is
much better as compared to other players in market in both long and short run.
 Most of the respondents buy Mutual Funds of those companies which provide them
better returns, products, flexibility, and liquidity. This shows that today’s buyers are
rationale buyers.
 India’s largest mutual fund UTI still controls nearly 80% of the market.

CHAPTER- 9
CONCLUSION

9.1 Conclusion
 Mutual Funds now represent most appropriate investment opportunity for most
investors.
 As financial markets become more sophisticated and complex, investors need a

financial intermediary who provides professional expertise on successful investing.
 As the investors always try to maximize the returns and minimize the risks.
 Mutual funds satisfy these requirements by providing attractive returns with

affordable risks.
 The AMC’s has already overtaken the banking industry, more funds being under
mutual fund management than deposited with banks.
 Birla Sun Life Mutual Funds provide major benefits to a common man who wants to
make his life better than previous.
 A Birla Sun Life mutual fund has a ability to spot the sector trends & it has delivered
handsomely.
 In current status BSLMF emerged as the best-performing diversified funds.

CHAPTER- 10
RECOMMENDATIONS

10.1 Recommendations
 An aggressive advertising campaigning should be there to encourage more people to

invest.
 As some of the people thinks that mutual fund is risky, so the company should show
people the advantages and how it is better than other investment avenues.
 There is a great potential for the mutual fund because the people are ready to invest in
the mutual fund as there is a positive responses.
 Nowadays peoples are investing in more of equity funds because it gives high returns
as compare to other mutual funds schemes.
 Peoples are preferred to invest in long term savings when only they have enough of
surplus. They are least concerned about the other’s advice.
 To uproot the investment level of the company should give training programme to
financial advisors who approach the investor for the investments.
 Company should undertake the campaign, Road shows, Advertisements, and other
type of Publicity for the effective awareness of different schemes that are available in
the market.
 The company should arrange the Seminars, Presentations etc. giving detail idea about
the securities and benefits of investments.

CHAPTER- 11
BIBILIOGRAPHY

11.1 Websites
 www.mutualfundsindia.com
 www.amfiindia.com
 www.utimf.com
 www.birlasunlifemutualfunds.com
 www.reliancemoney.com
 www.google.com
 www.bseindia.com
11.2 Text Book

 Mutual Funds in India: A study of Investment Management.
 Prof. M.V Kulkarni: Research Methodology, Everest Publishing House, First Edition
Year 2010.


Prof. M.K Gandhi: A Project Report On

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A PROJECT REPORT ON

Comparative Analysis of Mutual Fund in Pune.

Birla Sun life Asset Management Company (BSLAMC)

UNDER THE GUIDANCE OF

Prof. M.K Gandhi

IN PARTIAL FUFILLMENT OF THE REQUIREMENTS

FOR THE AWARD OF THE DEGREE OF

MASTER OF MARKETING MANAGEMENT

YEAR 2012 TO 2014

Indira Institute of Management, Pune

1|Page Indira Institute of Management, Pune

I am extremely grateful to BSLAMC which has provided me with an opportunity to undergo

• Mr. Gulshan Goklani

2|Page Indira Institute of Management, Pune

The advantages of Mutual Funds are professional management, diversification, economies of

3|Page Indira Institute of Management, Pune

4|Page Indira Institute of Management, Pune

5|Page Indira Institute of Management, Pune

 Mutual funds bring the benefits if diversification and money management to an

6|Page Indira Institute of Management, Pune

7|Page Indira Institute of Management, Pune

8|Page Indira Institute of Management, Pune

Birla Sunlife Asset Managemet Company ltd.

9|Page Indira Institute of Management, Pune

Our mission is to help customers achieve lifetime financial security.

Our vision is to be an international leader in protection and wealth management.

10 | P a g e Indira Institute of Management, Pune

11 | P a g e Indira Institute of Management, Pune

1. Aditya Birla Capital Advisors Private Limited

2. Aditya Birla Chemicals Limited (India)

12 | P a g e Indira Institute of Management, Pune

3. Aditya Birla Finance Limited

4. Aditya Birla Group Power Projects

a) Thermal and hydro power

13 | P a g e Indira Institute of Management, Pune

14 | P a g e Indira Institute of Management, Pune

5. Aditya Birla Insurance Brokers

6. Aditya Birla Money

7. Aditya Birla Retail Limited

15 | P a g e Indira Institute of Management, Pune

16 | P a g e Indira Institute of Management, Pune

 Aditya Birla Group – The Indian Scenario

 The largest fashion (premium branded apparel) and lifestyle player

17 | P a g e Indira Institute of Management, Pune

 Works in 3,000 villages

18 | P a g e Indira Institute of Management, Pune

To be a premium global conglomerate, with a clear focus on each of the businesses.

19 | P a g e Indira Institute of Management, Pune

20 | P a g e Indira Institute of Management, Pune

21 | P a g e Indira Institute of Management, Pune

3.1 What is Mutual Funds?

22 | P a g e Indira Institute of Management, Pune

23 | P a g e Indira Institute of Management, Pune

FIRST PHASE – 1964-87

SECOND PHASE – 1987-1993 (Entry of Public Sector Funds)

THIRD PHASE – 1993-2003 (Entry of Private Sector Funds)

24 | P a g e Indira Institute of Management, Pune

FOURTH PHASE – Since February 2003

25 | P a g e Indira Institute of Management, Pune

3.4 SEBI Regulations

26 | P a g e Indira Institute of Management, Pune

3.5 SEBI GUIDELINE OF MUTUAL FUNDS

SEBI Regulation Act 1996