Managerial Internship Report


Mutual Funds Analysis, Sales and Distribution

IDFC Mutual Funds

Honey Parnami PGP20102129


Mr. GyanendraPrakash

(Faculty Mentor)

(Industry Mentor)

iilm institute for higher education (2010-2012)


Presented by

Honey Parnami

Based on the training undertaken in

IDFC Mutual Funds

Project Mutual Funds Analysis, Sales and distribution


From 4 May to 28 June

Industry Guide Mr. Gyanendra Prakash


Going to the thick of things I would like to add some thankful words. I owe a huge debt of thanks and deep sense of gratitude to my learned guide Mr. Gyanendra Prakash IDFC MUTUAL FUND, ASSETS MANAGEMENT COMPANY, Barakhamba Road (New Delhi) branch under whose guidance, supervision and encouragement the present study was undertaken and completed. Their sympathetic, accommodating and constructive nature remained a constant source of inspiration for me throughout the duration of this summer project. I am thankful to all the personnel in IDFC MUTUAL FUND AMC LTD for utmost cooperation and timely help extended by them for the completion of the project.

Honey Parnami PGP 20102129



which option (Growth or Dividend) they prefer or which investment strategy they follow (Systematic Investment Plan or One time Plan). The analysis presented in this Project Report is based on market research on the saving and investment practices of the investors and preferences of the investors for investment in Mutual Funds. the Company Profile. As information and awareness is rising more and more people are enjoying the benefits of investing in mutual funds.1 EXECUTIVE SUMMARY: In few years Mutual Fund has emerged as a tool for ensuring one‟s financial wellbeing. Objectives of the study. which type of product they prefer. Mutual Funds have not only contributed to the India growth story but have also helped families tap into the success of Indian Industry. This report will help to know about the IFA‟s Preferences in Mutual Fund which means do they prefer any particular Asset Management Company (AMC). This Project as a whole can be divided into three parts.1. Research Methodology. The main reason the number of retail mutual fund investors remains small is that eight in ten people with incomes in India do not know that mutual funds exist. One can have a brief knowledge about Mutual . The trick for converting a person with no knowledge of mutual funds to a new Mutual Fund customer is to understand which of the potential investors are more likely to buy mutual funds and to use the right arguments in the sales process that customers will accept as important and relevant to their decision. the number who decide to invest in mutual funds increases to as many as one in five people. The first part gives an insight about Mutual Fund and its various aspects. This Project gave me a great learning experience and at the same time it gave me enough scope to implement my analytical ability. But once people are aware of mutual fund investment opportunities.

Needs and Importance of Mutual Fund in India. The Third Part consisted of the sales part. 1. This part holds account for the basic selling of mutual funds through Private Sector Unit Banks channel of distribution. Also data from the various investors were taken into account. The second part of the Project consists of data analysis collected through survey done on 30 IFA‟s (Independent Fund Advisors). I was placed at PSU Bank in Noida. I also studied about various products and strategies of other AMCs in INDIA. To Find the various factors which affects the decision of investors while investing in mutual fund scheme To Find various methods adopted by AMC‟s to sell Mutual Fund in India Overall analysis of mutual fund Industry. For the collection of primary data a questionnaire was drafted and was filled during the survey. NAV allotment in various Mutual Funds (Mid-Cap Mutual Funds) and report on STPs and VIPs.3 METHODOLOGY: . I hope the research findings and conclusion will be of use. The data collected has been well organized and presented.Fund and its basics through the Project.2 OBJECTIVE: • • • • The Characteristics. Also various case studies regarding Systematic Investment Plans(SIP) and analysis sheets regarding assest classes of India and their returns. 1. I also took views of people who visited the Bank.

DATA SOURCES Information has been gathered through primary sources. It is restricted because of time and resource constraints. SAMPLE SIZE The size of the sample is around 30 IFA‟s CHAPTER 2 .TYPE OF RESEARCH In this project descriptive research is used. QUESTIONAIRE DESIGN For research purpose questionnaire has been designed with closed-ended questions keeping in mind the objective of the research. LOCALE The locale of the study is IFA’s Of New Delhi region only. Some questions have been designed using ordinal scale.


But the biggest advantage to mutual funds is diversification. 2. reflecting the investment objective. The money thus collected is then invested in capital market instruments such as shares. 2. Professional managers manage the affairs for a fee. By pooling money together in a mutual fund. ACCORDING TO AMFI(ASSOCIATION OF MUTUAL FUND OF INDIA) : A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal.2 CHARACTERISTICS OF A MUTUAL FUND: • • • • • • Investors own the mutual fund. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified. debentures and other securities. The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them. alters with Change in market value of investments. investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities (usually stocks or bonds). When you invest in a mutual fund. Value of the portfolio and investors‟ holdings.A mutual fund is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The funds are invested in a portfolio of marketable Securities. The flow chart below describes broadly the working of a mutual fund. you are buying shares (or portions) of the mutual fund and become a shareholder of the fund.3 ADVANTAGES OF MUTUAL FUNDS: The advantages of investing in a Mutual Fund are: . Mutual funds are one of the best investments ever created because they are very cost efficient and very easy to invest in (you don't have to figure out which stocks or bonds to buy). professionally managed basket of securities at a relatively low cost.

This amount today would get you less than quarter of an Infosys share! Thus it would be affordable for an investor to build a portfolio of investments through a mutual fund rather than investing directly in the stock market. This kind of a diversification may add to the stability of your returns. real estate. An investor can buy in to a portfolio of equities. depending upon the investment objective of the scheme. bonds.) and different sectors (auto. bonds. It simply means that you must spread your investment across different securities (stocks. • DIVERSIFICATION The nuclear weapon in your arsenal for your fight against Risk.). fixed deposits etc.e. . shares. which would otherwise be extremely expensive. i. Similarly the information technology sector might be faring poorly but the auto and textile sectors might do well and may protect your principal investment as well as help you meet your return objectives. etc. textile. applicable to all schemes and benefits applicable specifically to open-ended schemes. Each unit holder thus gets an exposure to such portfolios with an investment as modest as Rs.There are numerous benefits of investing in mutual funds and one of the key reasons for its phenomenal success in the developed markets like US and UK is the range of benefits they offer. information technology etc.500/-. • AFFORDABILITY A mutual fund invests in a portfolio of assets. The benefits have been broadly split into universal benefits. We have explained the key benefits in this section. for example during one period of time equities might under perform but bonds and money market instruments might do well enough to offset the effect of a slump in the equity markets. which are unmatched by most other investment avenues. money market instruments.

• TAX BENEFITS Any income distributed after March 31. For example. it offers an opportunity to an investor to invest sums across a variety of schemes. secondly. This variety is beneficial in two ways: first. including income from Units of the Mutual Fund. as and when required. In case of Individuals and Hindu Undivided Families a deduction unto Rs. 2002 will be subject to tax in the assessment of all Unit holders. When you buy in to a mutual fund. will be taxed at a confessional rate of 10. 2003. These rules relate to the formation. Units of the schemes are not subject to Wealth-Tax and Gift-Tax. the mutual funds regulator has clearly defined rules. and (b) keep track of investments and changes in market conditions and adjust the mix of the portfolio. Such a high level of regulation seeks to protect the interest of investors. which govern mutual funds. you are handing your money to an investment professional that has experience in making investment decisions. an investor can invest his money in a Growth Fund (equity scheme) and Income Fund (debt scheme) depending on his risk appetite and thus create a balanced portfolio easily or simply just buy a Balanced Scheme.000 from the Total Income will be admissible in respect of income from investments specified in Section 80L. It is the Fund Manager's job to (a) find the best securities for the fund.5%. administration and management of mutual funds and also prescribe disclosure and accounting requirements.• VARIETY Mutual funds offer a tremendous variety of schemes. given the fund's stated investment objectives. • REGULATIONS Securities Exchange Board of India (“SEBI”). both debt and equity. . • PROFESSIONAL MANAGEMENT Qualified investment professionals who seek to maximize returns and minimize risk monitor investor's money. income distributions for the year ending March 31. as a measure of concession to Unit holders of open-ended equity-oriented funds. 9. it offers different types of schemes to investors with different needs and risk appetites. However.

irrespective of the performance of the fund. delayed payments and follow up with brokers and companies. The portfolio of securities in which a fund invests is a decision taken by the fund manager.4 DISADVANTAGES OF MUTUAL FUNDS: • • • No control over cost No tailor-made portfolio Managing a portfolio of fund S.• CONVENTIONAL ADMINISTRATION Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries. Costs Control Not in the Hands of an Investor No Customized Particulars Investor has to pay investment management fees and fund distribution costs as a percentage of the value of his investments (as long as he holds the units). 1. The investor may opt for a Systematic Investment Plan (“SIP”) or a Systematic Withdrawal Advantage Plan (“SWAP”). Return Potential Over a medium to longterm. through a broker or a financial planner. Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities. Disadvantage No. you can redeem all or part of your units any time you wish. Some schemes do have a lock-in period where an investor cannot return the units until the completion of such a lock-in period. Investors have no right to interfere in 2. Mutual Funds save your time and make investing easy and convenient. • CONVENIENCE An investor can purchase or sell fund units directly from a fund. In addition to this an investor receives account statements and portfolios of the schemes. 2. . • LIQUIDITY In open-ended mutual funds.

It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. At the end of 1988 UTI had Rs. SBI Mutual Fund was the first non.US 64 Followed by ULIP in 1971. at the initiative of the Government of India and Reserve Bank the. 2. 6700 crores Launch of First Scheme . • • • • • MF Industry started in India in 1963 with formation of UTI Asset under management in 1987. LIC established its mutual fund in June 1989 .UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87). public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). The first scheme launched by UTI was Unit Scheme 1964. SECOND PHASE – 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of nonUTI.Portfolios Difficulty in Selecting a Suitable Fund Scheme the decision making process of a fund manager. Bank of India (Jun 90). Many investors find it difficult to select one option from the plethora of funds/schemes/plans available.88: Rs. Punjab National Bank Mutual Fund (Aug 89). they may have to take advice from financial planners in order to invest in the right fund to achieve their objectives. Bank of Baroda Mutual Fund (Oct 92).700 crores of assets under management.5 HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY IN INDIA: The mutual fund industry in India started in 1963 with the formation of Unit Trust of India. Indian Bank Mutual Fund (Nov 89).6. Mastershare (1987) UTI was the only player in the market enjoying monopoly position huge mobilization on funds. 3. 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. CGGA (1986). 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. For this. which some investors find as a constraint in achieving their financial objectives.

following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. except UTI were to be registered and governed. Change in the mindset of the investors UTI was still the undisputed leader of the market. 1993 was the year in which the first Mutual Fund Regulations came into being. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. As at the end of January 2003.44. The number of mutual fund houses went on increasing. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. 21.while GIC had set up its mutual fund in December 1990. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. the assets of US 64 scheme. The Specified Undertaking of Unit Trust of India.47. The Unit Trust of India with Rs. Followed by Canbank MF.835 crores as at the end of January 2003. giving the Indian investors a wider choice of fund families. representing broadly. there were 33 mutual funds with total assets of Rs. At the end of 1993. under which all mutual funds. a new era started in the Indian mutual fund industry. with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. The second is the UTI Mutual Fund Ltd. assured return and certain other schemes. the mutual fund industry had assets under management of Rs. LIC MF. 541 crores of assets under management was way ahead of other mutual funds. • • • • Establishment of SBI MF – the first non UTI MF.29. THIRD PHASE – 1993-2003 (Entry of Private Sector Funds) with the entry of private sector funds in 1993. 004 crores.805 crores. 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. Sector funds in 1993 JV of foreign fund management companies with Indian promoters Competition increased investors servicing techniques Investors started becoming selective. Also. • • • • Entry of the Pvt. 1. sponsored . One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs. FOURTH PHASE – SINCE FEBRUARY 2003 In February 2003. BOI MF.

conforming to the SEBI Mutual Fund Regulations. SEBI looks at track records of the . There were 29 funds as at the end of March 2006. Simultaneously. This is a continuing phase of growth of the industry through consolidation and entry of new international and private sector players. the costs involved in the process and the broad rules for entry into and exit from the fund and other areas of operation. BOB and LIC. Franklin Templeton Mutual Fund etc. In India. SEBI (Securities exchange Board of India) in our case.6 HOW DOES MUTUAL FUND WORK The working of Mutual Funds can be briefly stated in the form of the points below: • A draft offer document is prepared at the time of launching the fund.2004 Onwards The industry has also witnessed several mergers and acquisitions recently. As at the end of September. examples of which are acquisition of schemes of Alliance Mutual Fund by Birla Sun Life. as in most countries. the risk associated. 2004. Typically. Sun F&C Mutual Fund and PNB Mutual Fund by Principal Mutual Fund. these sponsors need approval from a regulator. there were 29 funds. and with recent mergers taking place among different private sector funds.153108 crores under 421 schemes. more international mutal fund players have entered India like Fidelity.76. • • • SEBI -the regulatory authority UTI comes under SEBI regulation voluntarily Government‟s step for investor‟s protection FIFTH PHASE - Growth and Consolidation . 2. it pre specifies the investment objectives of the fund.000 crores of assets under management and with the setting up of a UTI Mutual Fund. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs. SBI. It is registered with SEBI and functions under the Mutual Fund Regulations. which manage assets of Rs. the mutual fund industry has entered its current phase of consolidation and growth.

Birla Global Finance is the sponsor of the Birla Sun Life Asset Management Company Ltd. the sponsors promote the Asset Management Company also..g. in which it holds a majority stake. • • A sponsor then hires an asset management company to invest the funds according to the investment objective. E. which has floated different mutual funds schemes and also acts as an asset manager for the funds collected under the schemes. In the Indian context.sponsor and its financial strength in granting approval to the fund for commencing operations. In many cases a sponsor can hold a 100% stake in the Asset Management Company (AMC). . It also hires another entity to be the custodian of the assets of the fund and perhaps a third one to handle registry work for the unit holders (subscribers) of the fund.

after the 1999 Union Government Budget. when a fund invests in tax-exempt securities. Funds do offer “buy-back of funds/units” thus offering another avenue for liquidity to closed-end fund investor. 3. Three usual ways in which a fund‟s sales expenses may be recovered from the investors are: 1. At the time of investor‟s entry into the fund/scheme. by deducting a specific amount from the redemption proceeds payable to the investor: back end or exit load These charges made by the fund managers to the investors to cover distribution/sales/marketing expenses are often called “loads”. Tax-exempt vs. Non-Tax exempt Funds: Generally.6 TYPES OF MUTUAL FUNDS: I. By charging the fund/scheme with a fixed amount each year. It does not allow investors to buy or redeem units directly from the funds. 2. In India. Load vs. A load fund‟s declared NAV does not include load charges III. to provide liquidity to investors many closed-end funds get themselves listed on stock exchange. However. These expenses may be recovered from the investors in different ways at different times. by deducting a specific amount from his initial contribution: front-end or entry load. Closed-end or Open-end Open-end Funds: An open-end fund is one that has units available for sale and repurchase at all time. Funds that make no such charges or loads for sales expenses are called no-load funds. Close-end Funds: A close ended fund makes a one-time sale of a fixed number of unit. advertising and marketing expenses. At the time of the investor‟s exit from the fund/scheme.2. No Load: Marketing of a new mutual fund scheme involves initial expense. all of the dividend income received from any of the mutual funds is tax-free in the hands of the . it is called a tax-exempt fund. Funds that charge front-end. In India. during the stated number of years: deferred load. An investor can buy or redeem units from the fund itself at a price based on the Net Asset Value (NAV) per unit. SEBI has defined a “load” as the one-time fee payable by the investor to allow the fund to meet initial issue expenses including brokers‟/agents‟/distributors‟ commissions. II. back-end or deferred loads are called load funds.

In other words. Bonds and Money Market Funds. Funds are generally distinguished from each other by their investment objectives and types of securities they invest in. before distributing income to investors. funds other than Equity Funds have to pay a distribution tax. equity mutual fund schemes are tax-exempt investment avenues. Broad Fund Types by Nature of Investments Mutual funds may invest in equities. Different types of mutual fund Fund schemes Growth & Income Balanced Liquid & Money Market Gilt ELSS Fund of funds Portfolio objectives High Risk & High Return Moderate Risk & Return Fixed Return Zero Risk Tax Saving Additional diversification Types of Mutual Fund: Once we have reviewed the fund classes. However. So we have Equity. bonds or other fixed income securities. we are ready to discuss more specific fund types. All of them invest in . or short-term money market securities.investors. A. while other funds are taxable for distributable income.

or Real Estate Funds. which generally means securities of less than one-year maturity. C. banks and financial institutions and other entities such as infrastructure companies/utilities. Broad Fund Types by Investment Objective Investors and hence the mutual funds pursue different objectives while investing. since they invest in short-term fixed income securities. Money Market Funds are exposed to less risk than even the For internal use by Training Department of Prudential ICICI Mutual Fund Bond Funds. specialized and offshore debt funds. and less for capital appreciation. Debt Funds (or Income Funds): Next in the order of risk level. Examples include sector. Equity Funds have a greater risk of capital loss than a Debt Fund that seeks to protect the capital while looking for income. with less diversification in its investment. typically of over one year (under one-year instruments being money market securities). Focused Debt Funds: Some debt funds have a narrow focus. Growth Funds invest for medium to long term capital appreciation. Gilt Funds: Gilts are government securities with medium to long-term maturities. but also by private companies. as compared to longer-term portfolios of Bond Funds. Other examples of focused funds include those that invest only in Corporate Debentures and Bonds or only in Tax Free Infrastructure or Municipal Bonds. Income Funds invest to generate regular income. For example. Diversifies Debt Funds: A debt fund that invests in all available types of debt securities. Debt funds invest in debt instruments issued not only by governments. Thus. B. Value Funds invest in equities that are considered under-valued today. Broad Fund Types by Risk Profile The nature of a fund‟s portfolio and its investment objective imply different levels of risk undertaken. whose value will be unlocked in the future. issued by entities across all industries and sectors is a properly diversified debt fund. we may have Gold or other Precious Metal assets. we have the general category Debt Funds. Thus. Money Market Funds: Lowest rung in the order of risk level. Funds are therefore often grouped in order of risk. A diversified debt fund is less risky than a narrow-focus fund that invests in debt securities of a particular sector or industry. But there are funds that invest in physical assets. . Money Market Funds invest in securities of a short-term nature.

These plans do not generally offer guaranteed returns. Equity Fund: As investors move from Debt Fund category to Equity Funds.g. MIPs. • • No guarantee returns High potential for growth of capital Types of Equity Fund a) Aggressive Growth Fund • • • • • • • Maximum capital appreciation Invests in less researched or speculative shares. Fixed Term Plan Series – Another Indian Variant: These are essentially closed-end. Very volatile & riskier. Junk Bond Funds. Assured Return Funds – an Indian Variant: The SEBI permits only those funds whose sponsors have adequate net-worth to offer assurance of return. Investors have some lock-in period.g.g. For e. This scheme is for short-term investors who otherwise place money as fixed term bank deposits or inter corporate bonds. they face increased risk level. Technology Fund Capital appreciation in 3 – 5 years Less volatile then aggressive growth fund.High yield Debt Funds: There are funds which seek to obtain higher interest rates by investing in debt instruments that are considered “below investment grade”. e. c) Specialty Fund . b) Growth Fund Growth fund invest in companies whose earnings are expected to Rise above average rate. e.

While exposed to all equity price risks. The funds invest in share that constitute the index and in the same proportion on the index. g) Equity Income Funds There are equity funds that can be designed to give the investor a high level of current income along with some steady capital appreciation. The objective is to match the performance of the stock market by tracking an index that represents the overall market. may be termed a diversified equity fund.They invest in companies that meet predefined criteria. Fund concentrate on future growth prospect having good potential. 1. . iii) Small-Cap equity Funds Invest in shares of companies with relative lower market capital.) Equity Linked Savings Schemes: An Indian Variant Investment in these schemes entitles the investor to claim an income tax rebate. investing mainly in shares of companies with high dividend yields. low market to book value ratios and are undervalued by other yardsticks. d) Diversified Equity Funds A fund that seeks to invest only in equities. Value Funds will add only those shares to their portfolios that are selling at low price-earnings ratios. e) Equity Index Funds An index fund tracks the performance of a specific stock market index. except for a very small portion in liquid money market securities. f) Value Funds Value Funds try to seek out fundamentally sound companies whose shares are currently underprices in the market. bur is not focused on any one or few sectors or shares. but usually has a lock-in period before the end of which funds cannot be withdrawn. diversified equity funds seek to reduce the sector or stock specific risks through diversification. i) Sector Funds • • • Technology Fund Pharmaceutical Fund FMCG Fund ii) Offshore Funds Invest in equities in one or more foreign countries.

• Commodity Funds: While all of the debt/equity/money market funds invest in financial assets. or buy shares of housing finance companies or may even buy their securities assets. or lend to them.• Hybrid Funds – Quasi Equity/Quasi Debt: Many mutual funds mix these (money market. the mutual fund vehicle is suited for investment in any other. • Real Estate Funds: Specialized Real Estate Funds would invest in Real Estate directly. debt and equity) different types of securities in their portfolios. . or may fund real estate developers. Such funds are termed “hybrid funds” as they have a dual equity/bond focus.for examplesphysical assets.

custodian. Trustees – There can be a trustee company (comes under companies act.2.7 FUND STRUCTURE & CONSTITUENTS • • In USA Mutual Funds are investment companies In UK. trust form) They are all under SEBI regulations Sponsor – Person or a body who sets up or form the trust Appoints board of trustees. AMC. Qualification Contribution 40 % net worth of AMC Should have firm financial track record for 5 years Hands over trust deed to trustees. too) or board of trustees (comes under Indian Trust Act only) The role of the Trustees is to safeguard the interest of the investor/unit-holder of the fund – Fiduciary Capacity The trustees make sure that the funds are invested according to the investor‟s mandate and objective. its unit trust or investment trusts • • • • • • • • • • • • In India. there is only unit trust (i. The board of trustees is appointed by Sponsor with SEBI approval At least 4 trustees of which at least 2/3rd of the board of trustees should be independent .e.

executed by the Fund Sponsor in favor of the Trustees. An AMC typically has three departments: • Fund Management • Sales & Marketing • Operations & Accounting AMCs are fund managers Registered with SEBI • • • • • • • • • • • The AMC is also formed as a private limited company Responsible for operational aspects of the MF Investment management agreement with trustees The AMC gets fee for managing the funds according to the mandate of the investors.Custodian .8 Asset Management Company: An AMC is involved in the daily administration and also acts as investment advisor for the fund. Registrar & Transfer Agent Cannot have any other business interest AMC of one MF cannot be trustee/AMC of another MF Quarterly reporting to Trustees . 2. An asset management company is promoted by a sponsor which usually is a reputed corporate entity with sound record of profits.• • • • Trustees of one mutual fund cannot be trustee of another mutual fund Right to seek regular information and remedial action All major decisions need trustee approval The board of trustees are required to meet at least 4 times in a year to review the AMC Trust created through a document called the „Trust Deed‟.10 crores at all times At least 40% of AMC capital must be contributed by the Sponsor At least half (50%) of the directors of the AMC must be independent Appoints other constituents . An AMC‟s net worth (Share Capital + Reserves & Surplus) should be at least Rs.

accounts. Recently.The capital markets regulators also regulates the mutual funds in India. • RBI as supervisor of Money Market Mutual Funds . SEBI requires all mutual funds to be registered with them.As banks in India came under the regulatory jurisdiction of RBI. SEBI issues guidelines for all mutual funds operations . expenses etc. • RBI as supervisor of banks owned mutual funds . it has been decided that Money Market Mutual Funds of registered mutual funds will be regulated by SEBI through SEBI (Mutual Fund) Regulations 1996. bank owned funds to be under supervision of RBI and SEBI.investment.RBI has supervisory responsibility over all entities that operate in the money markets. Hence in the past Money Market Mutual Funds scheme of Mutual funds had to be abide by policies laid down by RBI. SEBI approval and consent of 75% unit holders are required. . AMC takeover by another sponsor • • • • • SEBI approval required Inform the unit holders Scheme takeover SEBI approval required Investors should be given option to redeem units incase they do not consent for it REGULATORS IN INDIA SEBI .• • • • • An AMC cannot engage in any business other than portfolio advisory and management Custodian – Appointed by board of trustees for safe keeping of securities as independent entity of sponsors Transfer Agents – Issue and redeem units and other related services such as preparation of transfer documents and updating investor records Distributors – Are appointed by AMC and may act on behalf of different funds Independent individuals are appointed as agent In merger of two AMCs.

the companies bear a huge market expense in the form of higher commission to lure investors. In either model. So they take shelter in third-party distribution AMCs like KARVY. . An agent is essential channel between investors and mutual fund products.Distribution Model AMC Direct Sales Distribution Channels In highly competitive environment. appoint their agents to sell the MF to AMCs products. These AMCs in turn. Increasing commoditization and growing needs of the customers are forcing players to shift to solution based models from production based ones. product innovation or development has become a necessity for mutual fund players to stay ahead. BAJAJ Capital. and Integrated Enterprises etc. the role of distribution channel remains critical as it helps stave off competition by maintaining relationships. Agents advise the customer on the kind of product that caters to the needs of the client. providing advisory services and customizing need-based solution Relationship plays a vital role while selling mutual fund products. However it is difficult for AMCs to manage and monitor large agent force. To unload their work.

delay in fund transfer and tardy . educate them and sell their products. As most of the investors are still not aware how it functions. the fact is that internet has its limits in providing customized advice to individuals. However. they are also appointing sales personnel to meet investors. However mutual fund players have to bear splurging marketing expenses to push their product against others. In addition mutual fund AMCs are also using banks and Non –Banking Financial AMCs (NBFC) as distribution channels to leverage their reach and huge client base. the transaction cost of establishing contact centers. assured return Delay (in Liquidity) Tardy inter-city payment system Transaction cost of establishing contact centers It has been a big challenge for the Mutual Fund Industry. Bank of India an Allahabad Bank.To control increasing operational costs. AMCs are opting for the service s of large distributors to sell their products by leveraging their value chain. given the fact that the post office has the largest network then many other institution or bank in the country. but the cost burden is huge. They sometime feel that it is a costly affair. Mutual fund industry is also using the internet to distribute their products because of the cost advantages and increased communication. Educating investors about the advantages of investing in mutual funds compared to risk-free savings instrument is a big task for the industry. UTI is distributing its offerings through selected branches of Indian Bank. The contribution of direct marketing to the total sales is miniscule. According to the Securities Market Infrastructure. sub brokers and agents. Challenges in Distribution • • • • • • Lack of awareness Risk aversion Extensive availability of the central govt. besides.Leveraging Expert (SMILE). the post office plays a vital role because its offices are distributed through the country. Corporation Bank. which comprises of a brokers. The post office is also used as a channel of Distribution by mutual funds AMCs. As far as retail penetration is concerned. restrict its use on large scale.

5% for equity and 2. Electronic Funds Transfer (FT) and Real.Time Gross settlement System (RTGS). This poses a great challenge for the industry to realize its potential. where it can be 3-5 days or more. A major reason for this is high cost of developing retail infrastructure. And to control the huge market expenses the authority has prescribed that the commission rates also shouldn‟t be more than mutual fund‟s expense limit of 2. tier 1 and 2 cities (about 50 cities). In addition. However. industry will have to focus on its reach in the retail segment. these problems are being resolved with appointment of registrars to meet the time-lines of recording the transactions. Allotment of units Net Asset Value (NAVs) is done before realization of funds.25 % for debt. Spreading the Mutual Fund Culture Though the Indian Mutual Fund industry has a huge potential. In the hope of getting more incentives. it is yet to be realized. Such hassle could prevent investors from investing in mutual funds. Such delay is quite pervasive in smaller towns. To curb such unethical practices. is a making the process fast and reducing delay in fund transfer across cities.7% in the urban areas 13. particularly in the smaller towns where investors are not willing to take risk. AMCs are wooing the distributors by offering more commission to push their products. mutual fund investments are confined to the metros. technological advancements of remittance instruments such as Electronic clearing Services (ECS). There is also a regulatory entanglement in fund realization. So. However. assured return on small products are restricting the competition as well as penetration of wide variety of mutual fund products. Curbing unethical practices The industry faces challenge to control certain practices.inter-city payment system are the major impediments. scaling up the operation by increasing investment in other cities doesn‟t seem feasible.7% of the . except in liquid and money market schemes.8 millions invest in mutual funds. the Association of Mutual Funds in India (AMFI) has prescribed that agents/distributors must have AMFI certification. distributors may opt for unfair practices like false projections to sell unsuitable products. To realize its growth potential. The extensive availability of the central govt. the client‟s concern and his needs should be of prime importance while selling. According to Chairman of AMFI there are more than 180 million households in India. So enhancing the reach through the existing distribution model will require more investments. motivate the investors to shift from one fund to another. Such regulations are required to be more effective to stop such unethical practices. As of now. namely high net worth investors and persuade them to over invest. making it penetration of 6. of which just 11.

the open-end fund could issue and repurchase units on an ongoing basis. they are required to formulate the details of the schemes and register it with SEBI before announcing the scheme and inviting the investors to subscribe to the fund. But. should properly regulate and monitor the regulation so that a favorable climate can be created. The document containing the details of the new fund offer that the AMC or the Sponsor prepares and circulates to the prospective investors is called the Offer Document. So there is a need to focus on rural penetration for future growth.8%. The govt. Offer Document When an AMC or a Fund Sponsor wishes to launch a new mutual fund scheme. The industry should focus on product innovation and maintain transparency. More efforts are required from the regulators and the industry to manage the wealth of individuals to further propel the growth of the industry by popularizing the use of mutual funds. Investors who choose dividend option can again have 2 sub options: • Dividend Payout Option: Investors who choose the dividend payout option on their investments will receive dividends as and when such . The offer document of the closed-end fund is issued only once at the time of issue. until amended. as the units are normally not re-purchasable for investors. though it will be first issued at the time of launch of the scheme. Offer Document issued by mutual funds serve the same purpose of inviting investors and giving them the information about the new fund offer. flexibility. Options Offered to Investors: • Dividend Option: The investor can choose to receive a part of the profits of the mutual fund at some intervals before their redemption. To achieve its growth. Launch of a new mutual fund scheme is called a New Fund Offer (NFO). SEBI requires the offer document of the openend fund to be revised every two years. Regulations should be tightened to curb unethical practices.households invest in mutual funds. in rural areas this percentage is just 3. This means that the offer document of the open-end funds is valid for all the time. service and innovation to realize its potential. educating the customer about the mutual funds as a saving vehicle will be critical. They should also develop a comprehensive risk management system so that it can induce more investment. This option is Dividend Option.

There are 2 normal situations when investors are restricted from exiting the fund: • An open-ended fund may announce an initial offer period. • Dividend Re-investment Option: Investors who opt for the dividend reinvestment option do not take the amount of dividend out of the scheme. In order to enjoy the tax rebate. the investor is required to stay invested for a period of 3 years. during which investors cannot exit the fund. • Growth Option: The investors who do not want to receive any part of profits of the mutual fund before its redemption. This NAV is known as ex-div NAV. This is Growth Option. Rather they want to retain the profits made in the pool and want their returns to grow by being compounded. Mutual funds may create products with lock-in periods. They re-invest the dividends that are declared by the mutual funds back into the mutual funds itself. Investor Earning Opportunities: Dividend Payout Dividend Change in NAV Yes Yes Dividend Reinvestment Yes Yes Growth Option No Yes Lock-in Period Options: Mutual funds usually do not have lock-in periods. at a NAV that is prevalent immediately after the declaration of dividend or the NAV at the time of re-investment. • Some specific funds scheme can be designed to have a minimum period of investment. . during which time it will only sell units. Example: Investments in special “Equity Linked Savings Scheme” are eligible for tax rebates. Repurchase information can be found in the offer document. The fund will announce a date from which further sales and repurchases will take place. Whenever they need to get some money or profits back. Dividends are paid out to the investors in the form of warrants or are directly credited to the investor‟s bank account.dividends are declared by the scheme. There may be no repurchase during that period. they would sell a part of their units.

m. In respect of valid applications received after 3 p.m. by the Mutual Fund and the funds are available for utilization by the fund on the same day. the closing NAV of the next business day shall be applicable. by the Mutual Fund. in respect of any application received after 1 p.In extra-ordinary situations. impose temporary lock-in periods.m. same day‟s closing NAV shall be applicable. the closing NAV of the next business day shall be applicable. by the Mutual Fund. by the Mutual Fund. closing NAV of the same day shall be applied. • Redemption: In respect of valid applications received upto 3 p.m. mutual funds can.m. with notice to the investors through a national daily. In respect of valid applications received after 3 p. • Redemption . However. Regulations regarding Cutoff Timings: • All funds except liquid funds • Purchases: In respect of valid applications received upto 3 p. Investors have to check the offer document to see if the mutual fund has sought such a right for itself. by the Mutual Fund. closing NAV of the day immediately before the day on which funds are available for utilization by the fund shall be applicable. • Liquid funds • Purchases: In respect of valid applications. same day‟s closing NAV shall be applicable.

the fund may not repurchase the investor‟s units at the same price as NAV. The day‟s NAV must be posted on AMFI website by 8:00 p. NAV of all schemes must be calculated and published at least every Wednesday for Closed-end schemes and daily for Open-end schemes. The Sale price is NAV + Entry Load and the Repurchase price is NAV – Exit Load. less any liabilities.m. by the Mutual Fund. same day‟s NAV shall be applicable. previous day‟s closing NAV shall be applicable. The NAV computation is undertaken once at the end of each trading day based on the closing market prices of the portfolio's securities. There can be entry or exit loads. This applies to both Open-end & Closedend schemes. This is the price at which investors buy (bid price) fund shares from a fund company and sell them (redemption price) to a fund company. Dividing the total value of all the cash and securities in a fund‟s portfolio.m. Net Asset Value Net Asset Value (NAV) represents a fund's per share market value. derives it. that day. by the number of shares the Mutual Fund.In respect of valid applications received upto 10:00 a. the day on which NAV is calculated by a fund is known as the Valuation Date. In respect of valid applications received after 10:00 a. NAV: Net Assets of the Scheme/ Number of Units Outstanding Or (Market Value of Investment + Receivables + Other Accrued Income + Other Assets – Accrued Expenses – Other Payables – Other Liabilities)/Number of Units Outstanding on the Valuation Date For the purpose of NAV calculation.m. The fund‟s NAV is affected by these 4 factors: • Purchase & Sale of investment securities • Valuation of all investment securities held • Other assets & liabilities • Units sold or redeemed Pricing Of Units Although NAV per unit defines the fair value of the investor‟s holding in the fund. SEBI requires that fund must ensure that repurchase price is not lower than 93% of NAV (95% in the .

• Initial Issue Expenses of launching schemes (not to exceed 6% of initial resources raised under the scheme) Total Expenses: Total Expenses charged by the AMC to a scheme. are subject to the following limits: On the first Rs.100 Crores of daily or average weekly net assets On the next Rs.0% 1. Initial Issue Expenses • Initial Issue Expenses will be permitted for Closed Ended Scheme only and such scheme will not charge entry of a closed-end fund).75% For Bond Funds: . Also.300 Crores of daily or average weekly net assets On the next Rs. the fund may sell new units at a price that is different from the NAV. but the sale price cannot be higher than 107% of NAV.300 Crores of daily or average weekly net assets On the balance of daily or average weekly net assets 2. On the other side.100 Crores.25% of the first Rs. the AMC may charge an additional management fee up to 1% of weekly average net assets outstanding in the accounting year.100 Crores of weekly average net assets outstanding in the accounting year. Sale Price: Applicable NAV * (1 + Entry Load) Repurchase Price: Applicable NAV * (1 – Exit Load) Fees & Expenses: An AMC may charge the scheme with Investment Management & Advisory Fees that are fully disclosed in the offer document subject to the following limits: • 1. the difference between the repurchase price and the sale price of the unit is not permitted to exceed 7% of the sale price.25% 2. excluding issue or redemption expenses but including investment management & advisory fees. and @ 1% of weekly average net assets in excess of Rs.5% 2. • For no load schemes.

These are some of the investment plans offered by mutual funds in India: • Automatic Reinvestment Plans (ARP): .On the first Rs. the investment plan offered by a fund allows the investors freedom with respect to investing one time or at regular intervals.0% 1.75% 1. because they determine the level of flexibility available to the investor.5% Investment Plans The term “investment plans” generally refers to the portfolio flexibility that the funds to investors offering different ways to invest or reinvest.300 Crores of daily or average weekly net assets On the balance of daily or average weekly net assets 2. making transfers to different schemes within the same fund family. or receiving income at specified intervals or accumulating distributions.25% 2.300 Crores of daily or average weekly net assets On the next Rs. The different investment plans are an important consideration in the investment decision. Also.100 Crores of daily or average weekly net assets On the next Rs.

thereby letting the investor save in a disciplined and phased manner. The mode of investment could be though direct debit to the investor‟s salary or bank account. This tax is not applicable to distributions made by open-end-equity-oriented funds (funds with more than 50% of their portfolio in Equity). However. instead of receiving them in cash. The investor must withdraw a specific minimum amount with the facility to have withdrawal amounts sent to his residence by a cheque or credited directly into the bank account. A transfer will be treated as redemption of units from the scheme from which the transfer is made. Systematic Transfer Plan (STP): These plans allow the investor to transfer on a periodic basis a specified amount from one scheme to another with the same fund family. and as investment in units of the scheme into which the transfer is made.meaning two schemes managed by the same AMC and belonging to the same mutual fund.the Dividend Option & the Growth Option. The investor is usually required to maintain a minimum balance in his fund account under this plan. The investor is usually required to maintain a minimum balance in his fund account under this plan for which the transfer is made. The ARP allows the investor to reinvest the amount of dividends or other distributions made by the fund in the same fund & receive additional units. Such redemption or investment will be at the applicable NAV for the respective schemes as specified in the offer document. Systematic Withdrawal Plan (SWP): Such plans allows the investor to make systematic withdrawals from his fund investment account on a periodic basis. income distributed to unit-holders by a closed-end or debt fund is liable to a dividend distribution tax at a rate stipulated by the Government. 1996 is fully exempt from tax under section 10 (23D) of the IT act. • Systematic Investment Plan (SIP): These require the investor to invest a fixed sum periodically. A modified version of SIP is the Voluntary Accumulation Plan (VAP) that allows the investor flexibility with respect to the amount and frequency of investment. . thereby providing the same benefit as regular income. • • Tax Provisions • • Income earned by any mutual fund registered with SEBI (Mutual Fund) Regulation.Many funds offer 2 options under the same scheme. The amount withdrawn is treated as redemption of units at the applicable NAV as specified in the offer document.

10.10. as the objective of income schemes is to pay regular dividends. The fund cannot avoid the tax even if the investor chooses to reinvest the distribution back into the fund. Tax Benefits to the Investor • Dividends Received from Mutual Funds: • • Income distributed by a fund is exempted in the hands of investors No TDS on any income distribution by mutual fund • Capital Gains on Sale of Units: If the investor sells his units and earn „Capital Gains‟.20 paid as tax.100. While the investor will get Rs. the investor pays indirectly since the fund‟s NAV and the value his investment will come down by the amount of tax paid by the fund. they will be treated as short term capital asset. Rs.20 tax on the announced distribution.2%) will be the tax in the hands of the fund.• Dividend Distribution Tax is payable by the fund on its distributions and out of its income. Example: The fund will still pay Rs. it makes income schemes less attractive in comparison to growth schemes.20 (Tax Rate 10. otherwise as long term capital asset. Example: If a closed-end or a debt fund declares a dividend distribution of Rs. the fund will have Rs. The fund‟s current cash flow diminish by Rs. the investor is subject to the Capital Gains Tax as under: • If units are held for more than 12 months. • • Since the tax is on distributions.100.10.10. . even if the investor chooses to reinvest his dividends in the concerned scheme.20 less to invest. and its impact will be reflected in the lower value of the fund‟s NAV and hence investor‟s investment on a compound basis in future periods.

which means his purchase price is marked up by an inflation index. A mutual fund scheme shall not invest more than 10% of its NAV in unrated debt instruments issued by a single issuer and the total investment in such instruments shall not exceed 25% of the NAV of the scheme. Such transfers are done at the prevailing market price for quoted instruments on spot basis. Restrictions on Investments • A mutual fund scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer.• • Tax law definition of Capital Gains: Sale Consideration – (Cost of Acquisition + Cost of Improvements + Cost of Transfer) If the units were held for over one year. Purchase Price of a long term capital asset after indexation is computed as: Cost of Acquisition or Improvement: Actual Cost of Acquisition or Improvement * Cost Inflation Index for year of transfer/ Cost Inflation Index for year of Acquisition or Improvement or for 1981. whichever is later. which are rated not below investment grade by a credit rating agency authorized to carry out such activity under the Act. the investor gets the benefit of “Indexation”. A scheme may invest in another scheme under the same asset management company or any other mutual fund without charging any fees. The securities so transferred shall be in conformity with the investment objective of the scheme to which such transfer has been made. so his capital gain amount is less than otherwise. No mutual fund under all its schemes should own more than 10% of any company's paid up capital carrying voting rights. All such investments shall be made with the prior approval of the Board of Trustees and the Board of Asset Management Company. • • • • . Such investment limit may be extended to 20% of the NAV of the scheme with the prior approval of the Board of Trustees and the Board of Asset Management Company. provided that aggregate inter scheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund.

deliver the securities and shall in no case put itself in a position whereby it has to make short sale or carry forward transaction.• • The initial issue expenses in respect of any scheme may not exceed 6% of the funds raised under that scheme. take delivery of relative securities and in all cases of sale. or Any security issued by way of private placement by an associate or group company of the sponsor. Jacobs gives 4 different models: . A mutual fund scheme shall not invest more than 5% of its NAV in the equity shares or equity related investments in case of open-ended scheme and 10% of its NAV in case of close-ended scheme. Therefore. • Model Portfolios (By Jacobs) In preparing an Investment Portfolio. or The listed securities of group companies of the sponsor which is in excess of 30% of the net assets (of all the schemes of a mutual fund) • No mutual fund scheme shall invest more than 10 per cent of its NAV in the equity shares or equity related instruments of any company. • Every mutual fund shall. get the securities purchased or transferred in the name of the • No mutual fund scheme shall make any investment in. mutual fund on account of the concerned scheme. Every mutual fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases. Provided that. the advisor would have to deal with investors at different stages of their life-cycle and with different needs. the limit of 10% shall not be applicable for investments in index fund or sector or industry specific scheme. • • • Any unlisted security of an associate or group company of the sponsor. wherever investments are intended to be of long-term nature.

Investor Young, Professional

Recommended Model Portfolio Unmarried 50% in Aggressive Equity Funds 25% in High Yield Bond Funds, Growth & Income Funds 25% in Conservative Money Market Funds 2 10% in Money Market 30% in Aggressive Equity Funds 25% in High Yield Bond Funds & Long Term Growth Funds 35% in Municipal Bond Funds

Young Couple with Incomes & 2 Children

Other Couple, Single Income 30% in Short-Term Municipal Funds 35% in Long-Term Municipal Funds 25% in Moderately Aggressive Equity 10% in Emerging Growth Equity Recently Retired Couple 35% in Conservative Equity Funds for Capital Preservation/Income 25% in Moderately Aggressive Equity for Modest Capital Growth 40% in Money Market Funds

• Wealth Cycle Classification Stage Accumulation Financial Needs Investing for long Investment Preferences term Growth options and long term


identified financial goals

products. High risk appetite.

Transition Stage

Near term needs for funds as Liquid and pre-specified needs draw investments. closer appetite

medium term Lower risk

Reaping Stage

Higher requirement

Liquidity Liquid and medium term investments. Preference for income and debt products

Inter-Generational Stage

Long term investment of Low liquidity needs. Ability inheritance to take risk and invest for long term

Sudden Stage

Wealth Medium to Long term

Wealth Preference products.

preservation. for low risk

Comparison of Investment Products:
Investors tend to constantly compare one form of investment with another. There are 2 kinds of comparisons possible among different investment options.

• By Nature of Investment: Investor look for the Best returns on different options. However, to determine which option is better, the comparison should be made in terms of other benefits that the investor ought to look for in any investment.


Safety Convenience Low High Moderate



Equity FI Bonds Corporate Debentures Company Fixed Deposits Banks Deposits PPF Life Insurance Gold Real Estate Mutual Funds

High Moderate Moderate

High Moderate Moderate

High Moderate Low









Moderate Low

High High

Low Low

Moderate Low

Moderate High High

High Moderate High

Moderate High Moderate

Moderate Low High

• By Performance: The comparison on the basis of performance highlights the flexibility offered by mutual funds from the investor‟s perceptive. An

investment horizon & investment objective. High-MediumIncome Low RISK RETURN GRID .investor can choose from a wide variety of funds to suit his risk tolerance. Equity Investment Objective Capital Appreciation Income Risk Tolerance High Investment Horizon Long Term FI Bonds Low Medium-Long Term Medium-Long Term Medium Corporate Debentures Income High-MediumLow High-MediumLow Generally Low Low Low Low Low Company Fixed Income Deposits Bank Deposits PPF Life Insurance Gold Real Estate Mutual Funds Income Income Risk Cover Inflation Hedge Inflation Hedge Flexible-All Times Long Term Long Term Long Term Long Term Flexible-All Times Capital Growth.

Balanced Funds.Risk Focus Tolerance/Return Expected Low Debt Suitable Products Benefits by MFs offered Bank/ Company Liquidity. Tax free dividends BANKS V/S MUTUAL FUNDS Returns Administrative BANKS Low High MUTUAL FUNDS Better Low . Better FD. Partially Equity Some Diversified Equity Funds and some debt Funds. Better Management. Debt based Post-Tax returns Funds Liquidity. Expertise in stock picking. Liquidity. Equity Funds (Diversified as well as Sectoral) High Diversification. Mix of shares and Fixed Deposits Equity Capital Market. Diversification Medium Partially Debt. Better Post-Tax returns.

. of every month Maximum Rs.Expenses Risk Investment Options Network Liquidity Quality of Assets Interest calculation Low Less High penetration At a cost Not transparent Minimum balance between 10th & 30th.1 lakh on deposits Moderate More Low but improving Better Transparent Everyday Guarantee None CHAPTER 3: COMPANY PROFILE (IDFC ASSET MANAGEMENT COMPANY) Sponsor Infrastructure Development Finance Company Limited (IDFC).

Praveen Bhatt Assets Managed Rs. International Finance Corporation (IFC) . A majority of IDFC‟s shareholding (67% as of March 31. Rajiv Lall. Chairman Dr. Government of Singapore. Jyothi Krishnan Investor Service Officer Mr. 19. . Naval Bir Kumar – President Compliance Officer Ms.a member of the World Bank Group.05 crore (Jun-25-2010) COMPANY OVERVIEW IDFC AMC (ASSET MANAGEMENT COMPANY) IDFC is a leading private sector diversified financial institution established by a consortium of strong global and local institutions with the support and sponsorship of the Government of India.266. AIG. CEO / MD Mr. 2008) is held by reputed global stalwarts that include respectable names like Government of India.Trustee IDFC AMC Trustee Company Private Limited.

IDFC AMC Trustee Company Private Limited. We are determined to construct a comprehensive asset management business that consists of: (i) private equity investments through IDFC Private Equity Company Limited (ii) project equity through IDFC Project Equity Company Limited. 30. PRODUCTS Open Ended • • • • IDFC All Seasons Bond Fund IDFC Arbitrage Fund IDFC Arbitrage Plus Fund IDFC Asset Allocation Fund – Aggressive plan . and (iii) public markets investment advisory services through IDFC Investment Advisors Limited. JP Morgan among others. the Trustee. Goldman Sachs. The best Indian financial institutions such as HDFC. SBI. HISTORY IDFC Mutual Fund (“the Mutual Fund” or “the Fund”) previously known as Standard Chartered Mutual Fund (which was earlier known as ANZ Grindlays Mutual Fund) had been constituted as a Trust in accordance with the provisions of the Indian Trusts Act. and IDBI are owners in IDFC. The two funds under management are India Development Fund (IDF) and IDFC Private Equity Fund II. IDFC Private Equity manages a corpus of US$ 630 million and is India‟s largest and most active private equity fund focused on infrastructure. IDFC / its nominees acquired 100% equity shares of the Asset Management Company and the Trustee Company and further contributed an amount of Rs. making it an institution of high repute and standing.10.Morgan Stanley.000/. 1882 (2 of 1882) vide a Trust Deed dated December 29. Citigroup. LIC. 1999.000).to the corpus of the Fund (the total contribution of the sponsors till date including this contribution. The Trust has been formed for the purpose of pooling of capital from the public for collective investment in securities / any other property for the purpose of providing facilities for participation by persons as beneficiaries in such properties/ investments and in the profits / income arising there from. stands at Rs.

• • • • • • • • • • • • • • • • • • • • • IDFC Asset Allocation Fund – Conservative Plan IDFC Asset Allocation Fund – Moderate plan IDFC Monthly Income Plan IDFC All Seasons Bond Fund IDFC Cash Fund IDFC Classic Equity Fund IDFC Dynamic Bond Fund IDFC Government Securities Fund Investment Plan IDFC Government Securities Fund Short Term Plan IDFC Imperial Equity Fund IDFC Liquidity Manager IDFC Enterprise Equity Fund IDFC Nifty Fund IDFC India GDP Growth Fund IDFC Strategic Sector(50-50) Equity Fund IDFC Small and Midcap Equity (SME) Fund IDFC Premier Equity Fund IDFC Super Saver Income Fund Investment Plan IDFC Super Saver Income Fund Medium Term Plan IDFC Super Saver Income Fund Short Term Plan IDFC Tax Advantage (ELSS) Fund Close Ended • • • IDFC Tax Saver (ELSS) Fund IDFC Small & Mid Cap Equity (SME) Fund IDFC Enterprise Equity Fund COMPETITIVE ADVANTAGES Research IDFC have our roots in equity research. IDFC executive directors have equity research and investment experience in leading banks and brokerage houses Experienced management team . Their original business model was to provide research and information services on Indian business and capital markets to institutional customers.

Customer Relationship Management. and the volume of such business. SWOT ANALYSIS STRENGTHS • • • Research.Management team has hands on experience in financial services. WEAKNESS . must be based upon business considerations. Robust Risk Management Systems: IDFC asset management company manage the risks associated with their risk management procedures rely primarily on internally developed Risk Management System and systems provided by their vendors. Decisions relating to placing IDFC Asset Management Company Pvt. Ltd.'s business with current or prospective customers and suppliers. Ltd. will do business with a current or prospective customer or supplier to be influenced by unrelated interests.ASSET MANAGEMENT COMPANY have developed a team of Customer Relationship Managers across India to handle key customer accounts. especially targeted at retail sales and relationship management. This allows them to offer unbiased advice on investment products like mutual funds and other investment products. Business Decisions An employee must not permit a decision about whether IDFC Asset Management Company Pvt. Risk Management System. These people are experienced in financial services and have undergone in-house training. Customer Relationship Management IDFC MUTUAL FUND .

THREATS • • • • • Economic slowdown Stock market fall will have a cascading effect on mutual fund mobilization Increase or decrease in interest rates can effect debt or income mobilizations Future changes in personal taxation rules can impact mutual funds sales Increasing competition from large and particularly foreign players DIFFERENT METHODS OF SALES AND PROMOTION OF MUTUAL FUND DIFFERENT METHODS ADOPTED BY VARIOUS ASSET MANAGEMENT COMPANIES TO SELL THEIR MUTUAL FUNDS 1. Get in touch with Customers Various AMC directly contact the customers through various database. • ABN AMRO Mutual Fund . . Then the AMC convince the client to invest in their mutual fund. OPPORTUNITIES • • Changing demographic with higher disposable income and increasing complex financial instruments will drive the demand for investment advisory services Rapid penetration of internet and computer needs that technology enabled services will gain market share. Many of the times due to promotion the customers also contact AMC for investment.Lack of banking arm to complete the bank broker depositary chain • Insignificance presence in institutional segments.

e NFOs. Through Advertisement Each AMCs spends a lot of money in order to advertise for its Mutual Fund. The distributor in turn gets a variable commission from the AMC. Some of the major distributors are listed below: • • • • • Indiainfoline Limited Karvy Sherkhan Religare Blue Chip India Limited. METHODS ADOPTED BY AMCs PROMOTION AND CAMPAIGNING OF MUTUAL FUNDS 1.THROUGH DISTRIBUTORS Each AMCs sell its products through various distribution channels.• • • • • • Birla Sun Life Mutual Fund Cholamandalam Mutual Fund Kotak Mahindra Mutual Fund Reliance Mutual Fund Sundaram Mutual Fund Tata Mutual Fund 2.The distributor have a client base of their own in which they promote the mutual fund. The amount spend is high in case New Fund Offers i. Various mediums of advertisement use are given below: • • • Television Radio Print Media .THROUGH BANKS Some of the AMCs are sister concern of the bank. These AMCs aggressively promote their mutual fund to their client and develop a interest in them to invest in mutual fund in order to get higher returns and also through relationship managers . 3 .

They advertise their product on various online sites. 3.________________ Name Company Name • Date : In your set of choice which are the 5 top AMCs you promote ( Ranking doesn’t matter) ? . By Providing More Commission to Distributors: The distributor gets a variable commission from the AMC when they sell their Mutual Fund. the AMCs influence the distributor to promote their products only. A trained person makes a call to the clients and promotes the Mutual Fund. Thus by providing more commission to the distributor. Online Blogs: Various AMC‟s promote their product through online blogs.5% to 5%. They put canopy at a place where they could interact with maximum number of probable clients. CHAPTER 4 4.• Hoardings 2. The commission varies from 0. By Putting Canopies: This method is adopted by both distributor and AMCs in order to campaign for the product.1 RESEARCH ARN NO. They have the phone numbers of existing clients and potential clients. . 5. Telephonic Calls: Almost all the distributors promote the Mutual Fund with the help of telephone. 4.

• • • • • • • • • • What are the factors that influence your decission while selecting an AMC ? • Where does IDFC stands in your set of choice? • • • • In top 5 In top 10 In top 15 None of the above • • • • What as per you are the Areas of Improvement for us ? .

• Kindly specify the category of our following schemes:(Large-Cap.Mid-Cap or Small-Cap) Scheme Name • • IDFC Premier Equity Fund IDFC Imperial Equity Fund Category • • • • Kindly give us the following dates about yourself:Date of Birth Date of Anniversary PAN No. .

2 RESULT AND ANAYSIS OF FEEDBACK FORM Effect of entry and exit load while investing in mutual fund: We can conclude that there is a significance difference between the responses of the investors who take into consider entry and exit load while investing in a mutual fund Effect of performance similar mutual fund scheme .• 4.

we can conclude that there is significance differences between the responses of the investors who take into consider performance of similar mutual fund schemes while investing in a mutual fund. EFFECT OF REPUTATION OF AMC .

There is comparatively less effect of additional schemes on the customers while taking their investment decision. But it provides an edge over the other investment options. EFFECT OF STOCK MARKET FLUCTUATION . SWP. EFFECT OF ADDITIONAL SERVICE (SIP.Majority of the respondents consider reputation of AMC as an important factor while taking decision of investing in a mutual fund. STP) .

Majority of the respondent‟s decision is affected by stock market fluctuations while investing in a particular mutual fund . EFFECT OF PASS BACK . EFFECT OF DEGREE OF DEVIATION FROM BENCHMARK INDEX Majority of the respondents does not consider degree of deviation from benchmark index as an important factor while taking decision of investing in a mutual fund.

AMC Priorities • • • • • • • • SBI Mutual Fund Reliance Mutual Fund IDFC Mutual Fund Birla Sun Life Kotak Mahindra HDFC Mutual Fund Franklin Templeton DSP Mutual Funds .Majority of the respondents does not consider pass back as an important factor while taking decision of investing in a mutual fund. EFFECT OF FRIENDS AND FAMILY RECOMMENDATION Majority of the respondents does not consider pass back as an important factor while taking decision of investing in a mutual fund.

e whether he wants higher returns or safety of his capital. . Every customer has different needs i. FINDINGS CONCLUSION • • • • Mutual Fund industry is growing at a brisk pace. A lot of skills are required to convince a person in order to invest in Mutual Fund. Depending on his appetite towards risk a particular fund was suggested to him. But there are some hurdles which the industry has to overcome.Conclusion: Out of the total respondent most of them invest in reliance mutual fund as compared to the other mutual fund companies. The biggest hurdle is to change the mind set of people and have to increase the awareness.

• • There should be transparency in case of commission between AMC and distributor. • Most of the respondents are mainly look for the profitability in the mutual funds which becomes difficult for them because they normally invest their larger proportion of their amount in debt instruments as compared to equity which gives less return. Majority of the customers are unaware of the pass back option.• • Past return is the most important factor considered by the investors while investing in the mutual fund scheme. Pass back plays an important role for well know how customers in choosing the distributor for buying any mutual fund. The distributor should give a fixed pass back to each client who invest more than 2 lakhs rupees. RECOMMENDATIONS • The commission which the distributor gets from AMCs is variable and may even vary from different Mutual Funds of same AMCs. SEBI (Security Exchange Board of India) should make guidelines in fixing or setting the limits of commission. Pass back is the amount which the distributor gives to the customer from the commission which a distributor gets from the AMCs. LIMITATIONS .

The demand may vary in other .nseindia.• • • GEOGRAPHICAL LIMITATION The sample size was confined to Delhi and National Capital Region www. The project carried out in the month of May and June.mutualfundsindia.bseindia. REFERENCES And BIBLOGRAPHY……… www. TIME LIMITATION Time period was confined to two months only. SEASONAL LIMITATION was The demand of mutual funds varies according to different months.moneycontrol.

/.43/:3/8  9074:50 $303.!70807.039#0970/4:50  3 43807.709  37088.420:3/8 343807..9.0892039 !479144  90 .943.06:9:3/8 30/43/:3/8 749  3.4-8  3 5705. #0.907088.9.0 6:9 :3/8 147 .42203/0/4/0!479144 &32.0 94 /0.4-8.08 41 907 10 . 9 3..5.0430.59.:3/8 343 %072:3.3/ 9 /1107039 300/8  %0701470 ..0 ..420  3$479 %072:3.:3/8 34/07.9 /1107039 89.73 .08947 4:3  !74108843..847 4:/ .06:9:3/8  3  0/ 43/ :3/8  43 %072749:3/8 3:3.4208 /703   3430.08/110703924/08  3.3  4:3 4:50 9 3.089478 .06:9  320737496:9  #0...  W 4/0!4791448 .770/  37088.

3.90 7088.709:3/8     .749  3430.420  3 4/07.0 6:9 147 4/089.59.

3/439072 /03910/13.3.943 $9.3/ 20/:2 9072 570 850.8 6:/ .9 0/:294439072 0..53$9.943  147 4 78 .0892039!7010703.550990  #0.9 !7010703.078.4807 .550990   %7.420.943 $9.0893 147 43 9072 749459438..08920398  !7010703.0 07 706:702039  6:/9 6:/ .0892039 41 4 6:/9 300/8  -9 $9.0.10/ 300/8 /7.08 3.0     0. 43 9072 3.08920398  407 78 .881.   W 0..3/3.00/8 3.:2:.98 78..98  3907 0307.3/ 20/:2 9072 3.4.38943$9.08914743 9072   $://03 $9. 3.3.0 0..3.0 949.9.0 3.0 574/:.8 574/:.0 147 3.79072300/81471:3/8.3//0-9574/:.0 .0 3079.98  570807.943.

0 4/  4/07.4389.90 4  4/07.703/841.0 4  4/07.425.70430 147241 3.39.90 4/07.9:70 41  3.33.3.   425.0303.90     4 4 4 4/07.38 054898 !! 10 38:7.243/11070393.0892039 3.9903.90 4/07.425.089478903/94.90 4 '4.784385488-0.90 4 4/07.08947 44 147 90 089 709:738 43 /1107039 459438  40.425.109 43.07  94 /0907230 . 45943 8 -09907  90 .7843413.08920399.90  4/07.99 6:/9 6:9 43/8 47547.90 4 4/07.90 4/07.90  4/07./0390728414907-0301989.7843 84:/-02.0892039459438   W  .90 0-039:708 425.98  3.3 0/ 054898 .089474:99444147 3.0892039!74/:.34907  %070 .90 .0892039    #09:73 $.90 4 4 4 4/07.

425.#0.4480 1742 .89.420  0/:2 4  0/:2 43 %072 0/:2 425. 1:3/8 1742 90 3.0%0.4 4  3.0892039 4743 43%072 43/8 3.3.0  3 3. :3/8    4/07.09890 10-9 411070/ - 2:9:.420 054898 .0 4/   0/:2 4  3.90 0-039:708 3.9.08920394743 3.59.08947 8 507.88415071472.3.90 .943  #8%407.3. 5570.9.3 .420 4 0/:2 43 %072  47547.709 41 1:3/8 94 8:9 8 78 9407.08920394-0.07  0-0  %208 43%072 43%072 43%072 43%072 4 4 4 31.3.0892039 -0.0  3.90 4  W !071472. /0 .0    6:9 3..3 0/ 3.90   4/07.059.90 :9:.89.78434390-.3.0 .08947 .9430/0  #0.3054898 !! 1038:7...9430/0 31.420 #84.0  3.420  0307.

3.59.420 4 0-0  %208 #$#%&##  #8 4.:3/8   .:9:. 749   0/:2 3.0.:8 %407.

#09:73 50.-0!74/:.3.90/  $:9.98 030198 411070/ -8 4 0-9 .

79.3 6:/9  09907   0-9 -.3.947.8 0.709:738 :3/8  0/:2 !.0781.3/ 0/054898  6:/9  09907 !489 %. 425.07810/ .59.0/ :3/8  !../03/8         .6:9 $420 . 709:738  09907 . . 5.708 .943  507980 3 894.3  6:/9  %.943  6:9 .  .3.3/ 8420 /0-9 :3/8   41 8.709  6:9 :3/8 .0781.80/ !489 %. 0-9  ..1700/.8$0.02039  .79.07810/ 6:9 :3/8 ..


7039 ..2:2#8 .43 /054898  430        !%# !!#  .943 :.385.3 09907 %7.7.90 470 4-:92574.7039 32:2-...3900 .:.$&%&&$  #09:738  $ 4  &%&&$ 09907 4 /23897.0892039 59438  0947  6:/9  ":..943 9.07/.3. 3.0 -09003 9  9 410.9.94188098  3907089.385.072439  4/07.0 503808  #8  4 088 503097.489 4997.

90290/   .3 7 #.0425.    ..9:700.3!7...897:.04520393.72.3.3290/    %7:8900 %7:8900425. $$%% !   $543847 317.

.0 11.7 !708/039  425....99  88098.3.0 11.7:2.3  3.08947$07.07 7 !7.3.7470 :3        ! '#' . 7 .0/ #8   .07 8 49783.003.

0732039413/..47941 88..873/.7/.3/85438478541904.3.3/3   0.3/.93.906:9425.3.3.8:9:.9080.0732039413/.438479:241 897434-.9006:93.  $$%% !   8.07810/13.475:841&$ 243.8$9..08920398974:!7.3.3/2489.:3/ .8 ...02039...202-07419047/..%7:893.80.02-07   %7:8900425.847807.0.3$.374:5 4./357.8  $ .9006:91:3/14.841.0892039.3.3 3899:94341705:90.0990574.70430783 2...947/./-003.4:8343.88092.3899:943089.:80/43317.0452039:3/  .3/4.43897:.8 974:5 !47.943..-80/-.3/   5:-.906:92.:3/ .3/.707343.:3/ 47 90:3/ 570.02039-:830889.3%7:898..:3/ 90:9:..08.897:.20804.3290/ .943   ..90290/ 90%7:8900  .7989.-03.%7:89 00//.90/0. 89.9.703/.906:9974:!740.073203941$3.70/0907230/94. 0.79070/ :9:.0 57.30 4/2.3899:94388:.3 13.2.9  41 .8478 290/   !$9.43899:90/.843841903/. 8.3899:94389908:55479.3/! 47547..704/3 ...7089..3290/   5740.3.70983.39.43889841   57.0892039/..3/89.:/070850.5470   47..7.0..906:9:3/   $% # :9:.9.9:70 %0941:3/8:3/072.08974:3.   2.3/83/./0.24349078 %0-0893/. 39073..9.47/.   80/-705:90/4-./.42570038.3!7.

3..983423008.3/90 %7:8900425.3/1:7907.3.24:3941#8  .02039425.3.6:70/ 06:98.70841908809.3.4397-:90/.

4397-:9434190854384789/.0 3.8-00314720/147905:7548041544341.147.1742905:-.9#8   %0%7:89.9.0892039380.40. 9490.903.:7908.4397-:943 89.3/8.:/398.475:84190:3/ 90949.59...

..574507908.349075745079147905:7548041574.908147 5./31.8-0301.5.79.943-5078438..70838:.


 3.78390701742    #%"'& .420.

.947   6:9:3/ $2.073..905.073..2.3 4393.56:9 $ :3/ !702076:9:3/ $:507$.843843/:3/ 7-97.0732039$0.843843/:3/ .3 $:507$..0 $$ :3/ 36:511  W %.3 88094..39.0:3/ 7-97.0!:8:3/ 88094..6:9:3/ 3.07 390757806:9:3/ 19:3/ 3/..90.9.43/:3/ 4.3 $:507$..0!.073.943:3/ 7088. "75511  W W W W W W W W W W W W W W W W W W W W W W W W W  $0.3//.3 88094.8:3/ .0892039!.05.!749:3/ $97./...420:3/3.56:9 $ :3/ W 390757806:9:3/    !%%''%$ .943:3/ 4/07. /.6:9:3/ 6:/9.3 $0.420:3/0/:2%072!.0892039!.943:3/ 43807.:7908:3/3.420!.3 %.420:3/$479%072!.0732039$0.$0.3.$.:7908:3/$479%072!.88.07 $$ :3/ W $2..3 2507.3 4.

9438    $ %$$  .38809.3/3.08433/.0203990.3.9802:9:..090788.3.0433.90/39070898 0.078..807..2 .08 0850..-:83088  2:89-0-.3/70.9.3..884.3!.3-:83088./3-.:894207478:550794-031:03..02039$89028 .0:3/074303 4:8097./0.02039 &%&& $$%% !.438/07.02039.3.0203990.0450/#8.0.3/843050703.0892039574/:.894574.7.843.241 :894207#0... ./.7.9  9/ /4-:830889.93945./0/-907.0/313.3/8:55078 .3.0.:8942078  00. 8.59.4:398 %08050450 .0/2.:894207.3/889028 574.70050703..0/70.9478.030.80/.0892039574/:..2.08.843870.33 %8.7098943899:943.3/ -7407.7.9.4:20418:.807.94.74339073.0450/.90.8.98   #4-:89#8.9709.9. #080.04:774498306:97080.3.90/9907782.3.94385.3.3.:9.0/- :370./0.3..94385..02039425..3.:8942078.9 9/ 8 -:830889...38.3!.02039   :894207#0.3.02039$8902.80/:543-:83088..3/49073.3/90.32.-:8308824/0. . %07473.02039425.3/31472.3.8438  30254002:8934950729.7090/..-4:909078809.0313.04:808 50703.03/478    :830880.943852.7./07080.74883/.02039 574.006:97080.1:3/8..:7703947574850.0892039050703..3/00.4890294 41107:3-.3/.2.3.88092.08.425.0/0.943807..0/:70870572.3/.:7703947574850.

5.70  %#%$ W .:..94385...  W :894207#0.090/02.908.7.033899:943.3083507843.08 W #.425099431742.70.907/8548.990.9/0-9473.1:3/88.7147035..83.42509090-.....33/0247.3.-03.0570803.32.3/1473.08 W 3.943 W 3.9432:9:.3/5.325.420.70.-0/807.9438 W :9:70.847807.92:9:.425013.02039  W #8..80339070897..8047/0.5/503097.425:907300/89.8020398  .84/43 W $94.7294.34403.41-.4342.0892039.42024-.9437:08.3 3831.$%#%$ W #080.70.02039$8902   $$ W W  !! #%&%$ W .8. 3897:20398/7./.08 .        #%% $ $$!#  %  &%&&  #% % $  !%  '# &$ $$% %  !$% $%#&%&&$ .3..7098.1:3/24-.3.2.9...70./30110.7091.79.30110.0..33.3-7407/05489.83.943413907309..3/3.

:9:.039943.:3/ W 4.80 %0390.039.70 88907 .079802039 .-0.:3/ W 49.4228843174290 %0/897-:947.990.70890/-04 W 3/.43..43.98974:.:3/  W 7.9.:3/  %# &$%#&% #$ .290/   %# &$ $420 41 90 8 ..  09394:.:3/ W #0.70  W :053/.078     % $ !%8!#  % !  &%&&$   %74:/.7.439.3.8041907433.1:3/ .3/.:3/ W %.08932:9:.0.08939072:9:.39070893902943.3.1:3/347/079409 07709:738.0 5742490 907 2:9:..:3/ W $:3/.7..7.31430290/ W .3..3  %080 8 . .2:9:.88098574/:.74:8/897-:943..0892039  W # :9:.90 5742490902:9:.91473.:9:.7088.:8942078.0:9:.3308 %0/897-:94739:73098.84974:70.3//0..1:3/94907. W $07.0 90..2.9.84 .045.$:310:9:.2:9:.039-.:8942078974:..3/..74:8/70.9:8942078 '.47/897-:9478.073 41 90 -..1:3/ $42041902.3 W #0.-.341909208/:0945742494390.9.3/7.74:8/.439.943852.

 W 4./32470. ..345.5..7/38   33048 '.0798014798:9:.007090.:3/ %0 . .42288439490/897-:947 90 831:03.08 .3/ 8 3 47/07 94 .74:843308908   %00543./.4228843174290039080907:9:.4:/3907.9.0398.9843     !:993 .0398         !%#  #$#   .74:8 20/:28 41 ../3470422884394897-:9478 %0/897-:947098.9 974: 4330 -48  %0 .:3/ %0.07980 907 574/:.88503/8..80 0 :3/ 11078  0  8  './4  W !7390/.24:398503/ 8  3 .-0..30/ 507843 2.8 2489./. 94 90 ..90/897-:9478574249090:9:.03 -04 W %00.3/ 549039.2:2 3:2-0741574-.70 ...9 %05:9.0398 .25...079802039 :80 .49412430347/0794.74:8  8 5742490 907 574/:.992...843 W #../4590/ - -49 /897-:947 .4228843.0398   97.7.314790574/:.9 43 ./..:3/   !74.-0.090 5430 3:2-078 41 0893 .:3/99005419005430 %0 .7081742 94 %:8-574.090/897-:947945742490907574/:.3/5742490890:9:.34508 %8 2094/ 8 .

9.85074:. #  ****************     .33/4083 92.931:  W .3 W  W  W  W   W 070/40889.9907  W  W  W  W  W   W .709070.04:7/0..4.3/834:780941..02039147:8 W  .20  425.709094584:5742490  #.0  W 3945 W 3945  W 3945 W 4304190.0.90 .94789.93.88430800.8412574.20    W 34:780941.70901.

 .-4:94:7801  W .904133.190.020.904179 W .20      .547$2.5 / .078.0:8901443/.70 .5   $.W  W     W 3/850.9047414:714438.908.6:9:3/    W 3/..7 W !4            .9047 W !702076:9:3/  W 2507.0208  .

089332:9:.3/094.1:3/          ./03.9410397.            W  #$&%$$  #  110.

.9415071472.1:3/     % #!&%%         .3.43..0-090039070854380841903.08-090039070854380841903.3/094.72:9:.0394.831.990708.0394./03.72:9:.0894784 9..3.:/09.3.08933.43.0.:/09.082.990708831.089478 49.438/070397.3.04182.08933.3.0/110703.0/110703.020803.2:9:.1:3/8.2:9:.438/075071472.1:3/8..3.020            0.1:3/  110.

30/04.:894207809.8.843 :99574.3 /0.941.0892039459438   % $% #%&%&%       .3907 3.//943.4794190708543/0398.9.1:3/    % % $#' $! $! $%!             %0708.2:9:.438/07705:9.08933.00880110./08.079049073.94709.391.       .94341.425.02084390.0892039/0.7..8.843413.325479.

110.9:.9431742-03.1:3/   % # '% # #            .3 25479.2.08933.7091:.438/07/070041/0.       .2.3/0.943803.391.2:9:..4794190708543/0398/408349.79.4794190708543/039 8/0.8438.94709.73/0.843413.:.90/-894.1:3/   % !$$      .08933 .5..72:9:.8.

88-.438/075.88-.$:310 W 49..3 /0.94709.1:3/     !747908  W $:9:.0:9:.      . W :9:..2:9:.391..:3/ W 7.843413.08933.3..325479.8.3 /0.8.438/075..325479.2:9:.94709.:3/ W :9:.391.4794190708543/0398/408349.3/7...4794190708543/0398/408349.:3/ W #0.843413.:3/ .1:3/     % #$# %            .08933.

07.:843 :94190949.0943.0  W :99070.420 %0-089:7/0894 .8944. 1:3/.309023/8094150450.425.:3/8      43.425.70/949049072:9:.02:9:.089370.8090.1:3/.W 7.9.903/:897.:3/3/:8978743.308                    $   &$  W :9:..33%0250943 W $!:9:.-785..3/.703088  ..708420:7/08.708543/0392489419023.3.8.70..

71:3/.7.4228843  W %070 84:/ -0 97.3/ /897-:947  .3.7 1742 /1107039 :9:...80 41 .1:3/8..30 4.438/070/-903.0893:9:.0 :/0308 3 13 47 80993 90 298 41 .3/2.32:9:.:80903472.79.391.88-.3441479057419.89709:73890248925479.8/1107039300/8 009070.397401470344..5.890.1:3/ !. 3 ...:89420783.0.5.089907.4228843 -09003  .24:39.4228843.70/9406:9.089490./897-:9470981742908  W 4894190708543/0398. :3/8 41 8.8.4208/11.947.90/897-:947098174288.:79 .20 8  $ $0.. -0.-93902:9:.8.70757454794341907 .43.55099094.109418 .:.08088709:73             # % $  W %0.1:3/8.39807709:738478.702.425.448390 /897-:947147-:3.325479.020  W !..:3/  W .24:393/0-93897:20398.90/897-:947 ..:894207174290.703..7/ 41 3/.0893390 2:9:.:894207.88-.08947803.07.7/878.03 .59.507843347/07943.0.-0. 0503/3438.3.385.:9147902-0.88:0890/942  W !.70706:70/94.W 494188.  84:/ 2.4228843..

8 .3.43130/940..8.770/4:9390243941.3/412:9:.. 45943  %0 /897-:947 84:/.3/.9..42  -803/..88-. .47/394/110703924398 %05740.. .8.940.88 -.70 :3.03943.708.3/:30 %0/02.:07080.43130/94942439843  W $$ %%  %0/02.42  2:9:.42  . ..25080.943.0.08924709.W .70 41 90 5....43974 ..#04343  W %%%  %205074/.73490724398              ##$ 3/  #!   2430.59.10/5.1:3/83/..3/2.42  .479 41 90 .87:5008   %% $ W  #!%%  %08.7.1:3/8.:8942078 ....

42   . . 3803/.

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.