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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.

In other words, Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders. The profits or losses are shared by the investors in proportion to their investments. The mutual funds normally come out with a number of schemes with different investment objectives which are launched from time to time.


.To study about the awareness of Mutual Funds among people. .To study the interest of people in investing in Mutual Funds. .To study the different aspects of Mutual Funds according to different age,
profession etc.

.To study the future of Mutual Funds in India. .To study the different attitudes of people regarding risk, rate of return, period
of investment etc.

METHODOLOGY: A methodology is a way of approaching problem in order to find out the truth involved in a problem. Certain steps must be taken in a certain order and the order of steps is called methodology. Methodology is defined as the correct arrangement of thoughts either for the discovery or for the exposure of truth. Taking into consideration all the objectives mentioned above the Study has been carried out covering the following phases: Primary Data was gathered in the form of a survey of customers of sharekhan. The questionnaire is an open ended as well as close ended. Informal interviews, management views, investor responses and personal observations have been incorporated in some specific findings. Desk Research : Based on secondary data from o Books o Websites SAMPLING TECHNIQUE: Judgmental sampling technique is used for the survey, in which the

target audiences were chosen according to the convenience of the researcher.

SAMPLE SIZE: The sample considered for the survey is based on the Convenient Sampling of the researcher. The researcher has taken 75-sample size for the survey. STATISTICAL TOOL: The study also includes charts and graphical presentation of the collected data to give clear picture of the theoretical information collected. The collected data are qualitatively presented with the help of bar diagrams and charts. SCOPE OF STUDY The findings can be used at an organizational level to find out the

preference of investors with respect to Mutual Funds. The questionnaire can be used by consultancies in their analysis of

investment decision. The present study seeks to analyze the current operations of Sharekhan

regarding the basic mutual fund facilities.

LIMITATIONS Sample size restricted to management decision at the organization. However approximately 20 percent of the population was covered as sample size. The research is limited to responses gathered over the 2 months period at the company. Researches on similar lines require longer time for a more accurate analysis. The investors usually hesitate to provide complete information, which is essential for investment purpose. Company is not ready to share investors profile, which can be useful to conduct a survey in large extent. Investor ignorance was faced during discussions with respondents. CHAPTER SCHEME: Chapter I : Introduction. This chapter gives a brief introduction to Mutual funds, advantages of mutual funds, Mutual funds in India, Research Methodology, Objectives of the study, Scope and Limitations. Chapter II : Industry Profile. This chapter gives a brief introduction about the mutual fund industry, its origin, growth and the various phases. Chapter III : Company profile. This chapter gives a detailed information about the companies that is SHAREKHAN PVT LTD. It includes swot analysis, products and services. Chapter IV : Conceptual study. This chapter gives a detailed information on the various concepts of mutual funds, types of mutual funds, fund houses operating in India, Chapter V :Data analysis. This chapter analyses and interprets the data collected from the questionnaire. Chapter VI : Findings suggestions and conclusion. This chapter gives details about the findings from the study, suggestions for improvement and the conclusion.



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. 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 delinked 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 nonUTI Mutual Fund established in June 1987 followed by Canbank 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 Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with (Security Exchange Board of India) SEBI and functions under the Mutual Fund Regulations.


Sharekhan is one of the top retail brokerage houses in India with a strong online trading platform. The company provides equity based products (research, equities, derivatives, depository, margin funding, etc.). It has one of the largest networks in the country with 704 share shops in 280 cities. With their research expertise, customer commitment and superior technology, they provide investors with end-to-end solutions in investments. They provide trade execution services through multiple channels - an Internet platform, telephone and retail outlets. Sharekhan was established by Morakhia family in 1999-2000 and Morakhia family, continues to remain the largest shareholder. It is the retail broking arm of the Mumbai-based SSKI [SHANTILAL SHEWANTILAL KANTILAL ISWARNATH LIMITED] Group. SSKI which is established in 1930 is the parent company of Sharekhan ltd. With a legacy of more than 80 years in the stock markets, the SSKI group ventured into institutional broking and corporate finance over a decade ago. Presently SSKI is one of the leading players in institutional broking and corporate finance activities. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, and Derivatives. Depository services, online trading, Investment advice, Commodities, etc. Sharekhan Ltd. is a brokerage firm which is established on 8th February 2000 and now it is having all the rights of SSKI. The company was awarded the 2005 Most Preferred Stock Broking Brand by Awwaz Consumer Vote. It is first

brokerage Company to go online. The Company's online trading and investment site - - was also launched on Feb 8, 2000. This site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-ofbreed technology and superior market information. Share khan has one of the best states of art web portal providing fundamental and statistical information across equity, mutual funds and IPOs. One can surf across 5,500 companies for in-depth information, details about more than 1,500 mutual fund schemes and IPO data. One can also access other market related details such as board meetings, result announcements, FII transactions, buying/selling by mutual funds and much more. Sharekhan's management team is one of the strongest in the sector and has positioned Sharekhan to take advantage of the growing consumer demand for financial services products in India through investments in research, pan-Indian branch network and an outstanding technology platform. Further, Sharekhan's lineage and relationship with SSKI Group provide it a unique position to understand and leverage the growth of the financial services sector. We look forward to providing strategic counsel to Sharekhan's management as they continue their expansion for the benefit of all shareholders." SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment bank with strong research-driven focus. Their team members are widely respected for their commitment to transactions and their specialized knowledge in their areas of strength. The team has completed over US$5 billion worth of deals in the last 5 years - making it among the most significant players


raising equity in the Indian market. SSKI, a veteran equities solutions company has over 8 decades of experience in the Indian stock markets. If we experience their language, presentation style, content or for that matter the online trading facility, we'll find a common thread; one that helps us make informed decisions and simplifies investing in stocks.The common thread of empowerment is what Sharekhan's all about! "Sharekhan has always believed in collaborating with like-minded Corporate into forming strategic associations for mutual benefit relationships" says JaideepArora, Director - Sharekhan Limited. Sharekhan is also about focus. Sharekhan does not claim expertise in too many things. Sharekhan's expertise lies in stocks and that's what he talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets. And these beliefs are reflected in everything Sharekhan does for us! Sharekhan is a part of the SSKI group, an Indian financial services power house, with strong presence in Retail equities Institutional equities Investment banking.

In Mangalore SHAREKHAN is having the branch at Attavar and a franchisee at K.S.Rao Road. The Manager at attavar branch is MR. ADARSH. There are 30 employees working in this branch.


Sharekhan provides 4 in 1 account.

- Demat a/c - Trading a/c: for cash calculation - Bank a/c: for fund transfer Products: Mutual fund schemes Insurance Portfolio Management System Shares online and offline Bonds Fixed Deposits Commodities

Out of these we have to mostly sell demat accounts and Mutual Funds.

Demat account: Sharekhan is a depository participant. This means that we can keep the shares in dematerialized form in Sharekhan. But for this one has to have the demat account in Sharekhan. Dematerialization is the process by which a client can get physical certificates converted into electronic balances maintained in his account with the DP.

In Sharekhan, under demat account there are two types of terminals. TYPE OF DEMAT DEPOSIT (Refundable) CHARGES (nonrefundable)




Rs.5000 Rs.10000

Rs.750 Nil Rs.1000 Nil


Rs.5000 Rs.10000/25000

Its core services are:

Equities, and Derivatives trading on the National Stock Exchange of India Ltd. (NSE), and Bombay Stock Exchange Ltd. (BSE), Commodities trading on National Commodity and Derivatives Exchange India (NCDEX) and Multi Commodity Exchange of India Ltd. (MCX), Depository services, Online trading services, IPO Services, Dial-n-Trade Portfolio management services, Fundamental and Technical Research services, In addition to this they also provide advisory services and distributions for mutual funds. (a monthly publication with reviews of SharekhanValueLine

recommendations, stocks to watch out for etc.) Daily research reports and market review (High Noon & Eagle Eye) Pre-market Report

Daily trading calls based on Technical Analysis Cool trading products (Daring Derivatives and Market Strategy) Personalized Advice

Sharekhan First Step The SharekhanFirstStep is a brand new program designed especially for those who are new to investing in shares. All one have to do is open a SharekhanFirstStep account and they guide us through the investing process. Market Share Sharekhan enjoyed about 20 per cent market share in Web business (Internet trading) in stock markets. Three years ago, Web trading showed lot of promise but with the market witnessing a downturn, there was not much interest among retail customers. Profits The share of Web trading constituted 22 per cent of the revenue. As Sharekhan's daily trading volume was over Rs 200 crore, the share of Web trading at about Rs 40 crore a day was substantial and a larger part of the volume was coming from day traders. Features of Trading With Sharekhan: 1. Freedom from paperwork 2. Instant credit and money transfer 3. Trade from any net enabled PC 4. After hour orders 5. Online orders on the phone

6. Timely advice and-research reports 7. Real-time Portfolio tracking 8. Information and Price alerts. FINANCIAL CAPABILITY Taking in to consideration all its assets and liabilities company is valued at around Rs. 750-850 crores. HIERARCHY IN SHARE KHAN : There are 14 main hierarchical levels in Sharekhan: Trainees Super trainees Sales executives Assistant sales manager Area sales manager : City sales manager Assistant branch manager Branch manager Regional head Cluster head Business head Country head Directors CEO



First brokerage firm to go online. Products PMS Services. Technology Online fund transfer. Research reports. Clients (average of 15,000 accounts per year) Recommendations from clients. Free Demat a/c opening. Low annual maintenance charge

High brokerage charges but now they have overcome this by a new prepaid scheme in which brokerage is reduced to half.



Huge market.

Volatility of the share

market. Competitors.


Account opening:
Opening a DP account with Sharekhan

One can open a Depository Participant (DP) account, either through a Sharekhan branch or through a Sharekhan Franchisee center. There is no fee for opening DP accounts with Sharekhan. However a nominal deposit (refundable) is charged towards services which will be adjusted against all future billings. All investors have to submit their proof of identity and proof of address along with the prescribed account opening form.

List of Documents required to open an account with Sharekhan:

1) Proof of Identity You can submit a photo copy of any of the following o Voter ID o Passport o PAN Card o MAPIN UID Card o Driving License o Photo I card issued by Employer registered under MAPIN

2) Copy of Ration Card


3) Address Proof

You can submit a photo copy of any of the following o Voter ID Card o Driving License o Passport o Ration Card o Telephone Bill o Electricity Bill o Leave-License o Bank Passbook o Latest Bank Statement o Insurance Policy o Flat Maintenance Bill

4) A copy of cancelled cheque 5) Nominee photograph, if filled 6) Signed Photograph of all holders




Sharekhan has tie up with the following banks:

o HDFC o Axis Bank o IDBI o Citi Bank o IndusInd Bank o Union Bank o ICICI o Oriental Bank Of Commerce

Mutual Fund (Any Company) Systematic Investment Plan (Any Company)

5000 500


1. Online trading is very user friendly and one doesn't need any software to

access. 2. They provide good quality of services like daily SMS alerts, mail alerts, stock recommendations etc.
3. Sharekhan has ability to transfer funds from most banks. Unlike ICICI

Direct, HDFC Sec, etc., so investor not really needs to open an account with a particular bank as it can establish link with most modern banks .


o Business class people (high class) o High Net worth Individuals o Service class people o Government Employees o Young Adults (19-30 yrs.)

o Adults (35-50 yrs.) o HUF (Hindu Undivided Family) o Women (literate and working)



1. India Bulls

2. MotilalOswal

3. Religare

4. Kotak Securities

5. ICICI Direct

6. AnandRathi

7. India Infoline

8. Reliance Money

9. Angel Broking




A mutual fund is a professionally-managed type of collective investment scheme that pools money from many investors to buy securities (stocks, bonds, short-term money market instruments, and/or other securities).A mutual fund has a fund manager that trades (buys and sells) the fund's investments in accordance with the fund's investment objective. In the United States, a mutual fund is registered with the Securities and Exchange Commission (SEC) and is overseen by a board of directors (if organized as a corporation) or board of trustees (if organized as a trust). The board is charged with ensuring that the fund is managed in the best interests of the fund's investors and with hiring the fund manager and other service providers to the fund. Under Internal Revenue Service (IRS) rules, a U.S. mutual fund must distribute effectively all of its net income and net realized gains from the sale of securities at least annually. Since 1940, with the passage of the Investment Company Act of 1940 (the '40 Act), there have been three basic types of registered investment companies in the United States: open-end funds (or mutual funds), unit investment trusts (UITs); and closed-end funds. Recently ,exchange-traded funds (ETFs), which are a type of open-end fund or unit investment trust that trades on an exchange, have gained in popularity. Hedge funds are not considered a type of mutual fund; while they are another type of commingled investment scheme, they are not governed by the Investment Company Act of 1940 and are not required to register with the Securities and Exchange Commission. In the rest of the world, mutual fund is used as a generic term for various types of collective investment vehicles available to the general public, such as unit trusts, open-ended investment companies .

The first open-end mutual fund, the Massachusetts Investors Trust was founded by MFS Investments on March 21, 1924. After one year, it had 200 shareholders and $392,000 in assets. The entire industry, which included a few closed-end funds, represented less than $10 million in 1924. The stock market crash of 1929 hindered the growth of mutual funds. In response to the stock market crash, Congress passed a series of acts regulating the securities markets in general and mutual funds in particular. The Securities Act of 1933 requires that all investments sold to the public, including mutual funds, be registered with the Securities and Exchange Commission (SEC) and that they provide prospective investors with a prospectus that discloses essential facts about the investment. The Securities and Exchange Act of 1934 requires that issuers of securities, including mutual funds, report regularly to their investors; this act also created the Securities and Exchange Commission, which is the principal regulator of mutual funds. The Revenue Act of 1936 established guidelines for the taxation of mutual funds, while the Investment Company Act of 1940 governs their structure. When confidence in the stock market returned in the 1950s, the mutual fund industry began to grow again. By the end of the 1960s, there were approximately 270 funds with $48 billion in assets. The introduction of money market funds in the high interest rate environment of the late 1970s boosted industry growth dramatically. The first retail index fund, First Index Investment Trust, was formed in 1976 by The Vanguard Group, headed by John Bogle; it is now called the Vanguard 500 Index Fund and is one of the world's largest mutual funds, with more than $100 billion in assets as of January 31, 2011. Fund industry growth continued into the 1980s and 1990s, as a result of

three factors: a bull market for both stocks and bonds, new product introductions (including tax-exempt bond, sector, international and target date funds) and wider distribution of fund shares. Among the new distribution channels were retirement plans. Mutual funds are now the preferred investment option in certain types of fast-growing retirement plans, specifically in 401(k) and other defined contribution plans and in individual retirement accounts (IRAs), all of which surged in popularity in the 1980s. Total mutual fund assets fell in 2008 as a result of the credit crisis of 2008. As of December 2009, there were 7,691 mutual funds in the United States with combined assets of $11.121 trillion, according to the Investment Company Institute (ICI), a national trade association of investment companies in the United States. The ICI reports that worldwide mutual fund assets were $22.964 trillion on the same date. MUTUAL FUND OPERATION FLOW CHART



Mutual funds may invest in many kinds of securities (subject to its investment objective as set forth in the fund's prospectus, which is the legal document under SEC laws which offers the funds for sale and contains a wealth of information about the fund). The most common securities purchased are "cash" or money market instruments, stocks, bonds, other mutual fund shares and more exotic instruments such as derivatives like forwards, futures, options and swaps. Some funds' investment objectives (and or its name) define the type of investments in which the fund invests. For example, the fund's objective might state "...the fund will seek capital appreciation by investing primarily in listed equity securities (stocks) of U.S. companies with any market capitalization range." This would be "stock" fund or a "domestic/US stock" fund since it stated U.S. companies. A fund may invest primarily in the shares of a particular industry or market sector, such as technology, utilities or financial services. These are known as specialty or sector funds. Bond funds can vary according to risk (e.g., high-yield junk bondsor investment-grade corporate bonds), type of issuers (e.g., government agencies, corporations, or municipalities), or maturity of the bonds (short- or long-term). Both stock and bond funds can invest in primarily U.S. securities (domestic funds), both U.S. and foreign securities (global funds), or primarily foreign securities (international funds). Since fund names in the past may not have provided a prospective investor a good indication of the type of fund it was, the SEC issued a rule under the '40 Act which aims to better align fund names with the primary types of investments in which the fund invests, commonly called the "name rule". Thus, under this rule, a fund must invest under normal circumstances in at least 80% of the securities referenced in its

name. for example, the "ABC New Jersey Tax Free Bond Fund" would generally have to invest, under normal circumstances, at least 80% of its assets in tax-exempt bonds issued by the state of New Jersey and its political subdivisions. Some fund names are not associated with specific securities so the name rule has less relevance in those situations. For example, the "ABC Freedom Fund" is such that its name does not imply a specific investment style or objective. Lastly, an index fund strives to match the performance of a particular market index, such as the S&P 500 Index. In such a fund, thefund would invest in securities and likely specific derivates such as S&P 500 stock index futures in order to most closely match the performance of that index. Most mutual funds' investment portfolios are continually monitored by one or more employees within the sponsoring investment adviser or management company, typically called a portfolio manager and their assistants, who invest the funds assets in accordance with its investment objective and trade securities in relation to any net inflows or outflows of investor capital (if applicable), as well as the ongoing performance of investments . Mutual funds are subject to a special set of regulatory, accounting, and tax rules.

A Systematic Investment Plan (SIP) is a vehicle offered by mutual funds to help you save regularly. It is just like a recurring deposit with the post office or bank where you put in a small amount every month. The difference here is that the amount is invested in a mutual fund. The minimum amount to be invested can be as small as Rs 100 and the frequency of investment is usually monthly or quarterly.


NET ASSET VALUE The net asset value, or NAV, is the current market value of a fund's holdings, minus the fund's liabilities, that is usually expressed as a per-share amount. For most funds, the NAV is determined daily, after the close of trading on some specified financial exchange, but some funds update their NAV multiple times during the trading day. The public offering price, or POP, is the NAV plus a sales charge. Open-end funds sell shares at the POP and redeem shares at the NAV, and so process orders only after the NAV is determined. Closed-end funds (the shares of which are traded by investors) may trade at a higher or lower price than their NAV; this is known as a premium or discount, respectively. If a fund is divided into multiple classes of shares, each class will typically have its own NAV, reflecting differences in fees and expenses paid by the different classes. Some mutual funds own securities which are not regularly traded on any formal exchange. These may be shares in very small or bankrupt companies; they may be derivatives; or they may be private investments in unregistered financial instruments (such as stock in a non-public company). In the absence of a public market for these securities, it is the responsibility of the fund manager to form an estimate of their value when computing the NAV. How much of a fund's assets may be invested in such securities is stated in the fund's prospectus. The price per share, or NAV (net asset value), is calculated by dividing the fund's assets minus liabilities by the number of shares outstanding. This is usually calculated at the end of every trading day.


AVERAGE ANNUAL RETURN US mutual funds use SEC form N-1A to report the average annual compounded rates of return for 1-year, 5-year and 10-year periods as the "average annual total return" for each fund. The following formula is used P(1+T)n = ERV Where: P = a hypothetical initial payment of $1,000. T = average annual total return. n = number of years. ERV = ending redeemable value of a hypothetical $1,000 payment made at the beginning of the 1-, 5-, or 10-year periods at the end of the 1-, 5-, or 10-year periods (or fractional portion).

TURNOVER Turnover is a measure of the fund's securities transactions, usually calculated over a year's time, and usually expressed as a percentage of net asset value. This value is usually calculated as the value of all transactions (buying, selling) divided by 2 divided by the fund's total holdings; i.e., the fund counts one security sold and another one bought as one "turnover". Thus turnover measures the replacement of holdings. In Canada, under NI 81-106 (required disclosure for investment funds) turnover ratio is calculated based on the lesser of purchases or sales divided by the average size of the portfolio (including cash).


EXPENSES AND EXPENSE RATIOS Mutual funds bear expenses similar to other companies. The fee structure of a mutual fund can be divided into two or three main components: management fee, non-management expense, and 12b-1/non-12b-1 fees. All expenses are expressed as a percentage of the average daily net assets of the fund.

MANAGEMENT FEES The management fee for the fund is usually synonymous with the contractual investment advisory fee charged for the management of a fund's investments. However, as many fund companies include administrative fees in the advisory fee component, when attempting to compare the total management expenses of different funds, it is helpful to define management fee as equal to the contractual advisory fee plus the contractual administrator fee. This "levels the playing field" when comparing management fee components across multiple funds. Contractual advisory fees may be structured as "flat-rate" fees, i.e., a single fee charged to the fund, regardless of the asset size of the fund. However, many funds have contractual fees which include breakpoints so that as the value of a fund's assets increases, the advisory fee paid decreases. Another way in which the advisory fees remain competitive is by structuring the fee so that it is based on the value of all of the assets of a group or a complex of funds rather than those of a single fund..


NON MANAGEMENT FEES Apart from the management fee, there are certain non-management expenses which most funds must pay. Some of the more significant (in terms of amount) non-management expenses are: transfer agent expenses (this is usually the person you get on the other end of the phone line when you want to buy/sell shares of a fund), custodian expense (the fund's assets are kept in custody by a bank which charges a custody fee) INVESTOR FEES AND EXPENSES Fees and expenses borne by the investor vary based on the arrangement made with the investor's broker. Sales loads (or contingent deferred sales loads (CDSL)) are included in the fund's total expense ratio (TER) because they pass through the statement of operations for the fund. Additionally, funds may charge early redemption fees to discourage investors from swapping money into and out of the fund quickly, which may force the fund to make bad trades to obtain the necessary liquidity. For example, Fidelity Diversified International Fund charges a 10 percent fee on money removed from the fund in less than 30 days.

BROKERAGE COMMISSIONS An additional expense which does not pass through the fund's income statement (statement of operations) and cannot be controlled by the investor is brokerage commissions. Brokerage commissions are incorporated into the price of securities bought and sold and, thus, are a component of the gain or loss on investments. They are a true, real cost of investing though. The amount of commissions incurred by the fund and are reported usually 4 months after the fund's fiscal year end in the "statement of additional information" which is

legally part of the prospectus, but is usually available only upon request or by going to the SEC's or fund's website. Brokerage commissions, usually charged when securities are bought and again when sold, are directly related to portfolio turnover which is a measure of trading volume/velocity (portfolio turnover refers to the number of times the fund's assets are bought and sold over the course of a year). Usually, higher rate of portfolio turnover (trading) generates higher brokerage commissions. The advisors of mutual fund companies are required to achieve "best execution" through brokerage arrangements so that the commissions charged to the fund will not be excessiveas well as also attaining the best possible price upon buying or selling.

12b-1/Non-12b-1 SERVICE FEES

In the United States, 12b-1 service fees/shareholder servicing fees are contractual fees which a fund may charge to cover the marketing expenses of the fund. Non-12b-1 service fees are marketing/shareholder servicing fees which do not fall under SEC rule 12b-1. While funds do not have to charge the full contractual 12b-1 fee, they often do. When investing in a front-end load or no-load fund, the 12b-1 fees for the fund are usually .250% (or 25 basis points). The 12b-1 fees for back-end and level-load share classes are usually between 50 and 75 basis points but may be as much as 100 basis points. While funds are often marketed as "no-load" funds, this does not mean they do not charge a distribution expense through a different mechanism.



OPEN END FUNDS The term mutual fund is the common name for what is classified as an open-end investment company by the SEC. Being open-ended means that, at the end of every day, the fund continually issues new shares to investors buying into the fund and must stand ready to buy back shares from investors redeeming their shares at the then current net asset value per share. Mutual funds must be structured as corporations or trusts, such as business trusts, and any corporation or trust will be classified by the SEC as an investment company if it issues securities and primarily invests in nongovernment securities. An investment company will be classified by the SEC as an open-end investment company if it does not issue undivided interests in specified securities (the defining characteristic ofunit investment trusts or UITs) and if it issues redeemable securities. Registered investment companies that are not UITs or open-end investment companies are closed-end funds. Closed-end funds are like open end except they are more like a company which sells its shares a single time to the public under an initial public offering or "IPO". Subsequently, the fund's shares trade with buyers and sellers of shares in the secondary market at a market-determined price (which is likely not equal to net asset value) such as on the New York or American Stock Exchange. Except for some special transactions, the fund cannot continue to grow in size by attracting more investor capital like an open-end fund may.


EXCHANGE TRADED FUNDS A relatively recent innovation, the exchange-traded fund or ETF, is often structured as an open-end investment company. ETFs combine characteristics of both mutual funds and closed-end funds. ETFs are traded throughout the day on a stock exchange, just like closed-end funds, but at prices generally approximating the ETF's net asset value. Most ETFs are index funds and track stock market indexes. Shares are issued or redeemed by institutional investors in large blocks (typically of 50,000). Most investors buy and sell shares through brokers in market transactions. Because the institutional investors normally purchase and redeem in in kind transactions, ETFs are more efficient than traditional mutual funds (which are continuously issuing and redeeming securities and, to effect such transactions, continually buying and selling securities and maintaining liquidity positions) and therefore tend to have lower expenses. EQUITY FUNDS Equity funds, which consist mainly of stock investments, are the most common type of mutual fund. Equity funds hold 50 percent of all amounts invested in mutual funds in the United States. Often equity funds focus investments on particular strategies and certain types of issuers. BOND FUNDS Bond funds account for 18% of mutual fund assets. Types of bond funds include term funds, which have a fixed set of time (short-, medium-, or long-term) before they mature. Municipal bond funds generally have lower returns, but have tax advantages and lower risk. High-yield bond funds invest in corporate bonds, including high-yield or junk bonds. With the potential for high yield, these bonds also come with greater risk.


MONEY MARKET FUNDS Money market funds hold 26% of mutual fund assets in the United States. Money market funds generally entail the least risk, as well as lower rates of return. Unlike certificates of deposit (CDs), open-end money fund shares are generally liquid and redeemable at "any time" (that is, normal business hours during which redemption requests are taken - generally not after 4 PM ET). Money funds in the US are required to advise investors that a money fund is not a bank deposit, not insured and may lose value. Most money fund strive to maintain an NAV of $1.00 per share though that is not guaranteed; if a fund "breaks the buck", its shares could be redeemed for less than $1.00 per share. While this is rare, it has happened in the U.S., due in part to the mortgage crisis affecting related securities. FUNDS OF FUNDS Funds of funds (FoF) are mutual funds which invest in other mutual funds (i.e., they are funds composed of other funds). The funds at the underlying level are often funds which an investor can invest in individually, though they may be 'institutional' class shares that may not be within reach of an individual shareholder). A fund of funds will typically charge a much lower management fee than that of a fund investing in direct securities because it is considered a fee charged for asset allocation services which is presumably less demanding than active direct securities research and management. The fees charged at the underlying fund level are a real cost or drag on performance but do not pass through the FoF's income statement (statement of operations), but are usually disclosed in the fund's annual report, prospectus, or statement of additional information. FoF's will often have a higher overall/combined expense ratio than that of a regular fund. The FoF should be evaluated on the combination of the


fund-level expenses and underlying fund expenses, as these both reduce the return to the investor. Most FoFs invest in affiliated funds (i.e., mutual funds managed by the same advisor), although some invest in unaffilated funds (those managed by other advisors) or both.

ADVANTAGES OF MUTUAL FUNDS: The advantages of investing in a Mutual Fund are:

Diversification: The best mutual funds design their portfolios so

individual investments will react differently to the same economic conditions. For example, economic conditions like a rise in interest rates may cause certain securities in a diversified portfolio to decrease in value. Other securities in the portfolio will respond to the same economic conditions by increasing in value. When a portfolio is balanced in this way, the value of the overall portfolio should gradually increase over time, even if some securities lose value.

Professional Management: Most mutual funds pay topflight

professionals to manage their investments. These managers decide what securities the fund will buy and sell.

Regulatory oversight: Mutual funds are subject to many government

regulations that protect investors from fraud.

Liquidity: It's easy to get your money out of a mutual fund. Write a

check, make a call, and you've got the cash.

Convenience: You can usually buy mutual fund shares by mail, phone,

or over the Internet.


Low cost: Mutual fund expenses are often no more than 1.5 percent of

your investment. Expenses for Index Funds are less than that, because index funds are not actively managed. Instead, they automatically buy stock in companies that are listed on a specific index

Transparency: The extent to which investors have ready access to any required financial information about a company such as price levels, market depth and audited financial reports. Classically defined as when "much is known by many", transparency is one of the silent prerequisites of any free and efficient market. When transparency relates to information flow from the company to investors, it is also known as "full disclosure".

Tax benefits: Income tax systems generally allow a tax deduction for

various items, especially expenses incurred to produce income. Often these deductions are subject to limitations or conditions. Tax deductions generally are allowed only for expenses incurred that produce current benefits, and capitalization of items producing future benefit is required, sometimes with exceptions



The first mutual fund to be introduced in India was way back in 1963 when the Government of India launched Unit Trust of India (UTI). UTI enjoyed a monopoly in the Indian mutual fund market till 1987 when a host of other government controlled Indian financial companies came up with their own funds. These included State Bank of India, Canara Bank, Punjab National Bank etc. This market was made open to private players in 1993 after the historic constitutional amendments brought forward by the then Congress led government under the existing regime of Liberalization, Privatization and Globalization (LPG). The first private sector fund to operate in India was Kothari Pioneer which was later merged with Franklin Templeton.

MUTUAL FUNDS ARE AN UNDER TAPPED MARKET IN INDIA Despite being available in the market for over two decades now with assets under management equaling Rs 7,81,71,152 Lakhs (as of 28 February 2010) (Source: Association of Mutual Funds, India) , less than 10% of Indian households have invested in mutual funds. A recent report on Mutual Funds Investments in India published by research and analytics firm, Boston Analytics, suggests investors are holding back from putting their money in mutual funds due to their perceived high risk and a lack of information on how mutual funds work. This report is based on a survey of approximately 10,000 respondents in 15 Indian cities and towns as of March 2010.There are 43 Mutual Funds at present.


The primary reason for not investing appears to be correlated with city size. For example, as depicted in the exhibit below, among respondents with a high savings rate, close to 40% of those who live in metros and Tier I cities cited such investments were very risky, whereas 33% of those in Tier II cities said they did not how and where to invest in such assets.

On the other hand, among those who invested, close to nine out of ten respondents did so because they felt these assets to be more professionally managed than other asset classes. Exhibit 2 lists some of the influencing factors for investing in mutual funds.Interestingly, while non-investors cite risk as one of the primary reasons they do not invest in mutual funds, those who do invest cite the fact that they are professionally managed and more diverse most often as the reasons they invest in mutual funds versus other investments.




Birla Sunlife

Bank of Baroda


ING Vysya

ICICI Prudential

SBI Mutual Fund



Kotak Mahindra

Unit Trust of India



Franklin Templeton

Sundaram Mutual Fund

Religare Mutual Fund


SBI Mutual Fund

SBI Mutual Fund is Indias largest bank sponsored mutual fund and has an enviable track record in judicious investments and consistent wealth creation. The fund traces its lineage to SBI - Indias largest banking enterprise. The institution has grown immensely since its inception and today it is India's largest bank, patronised by over 80% of the top corporate houses of the country. SBI Mutual Fund is a joint venture between the State Bank of India and SocitGnrale Asset Management, one of the worlds leading fund management companies that manages over US$ 500 Billion worldwide. Exploiting expertise, compounding growth In twenty years of operation, the fund has launched 38 schemes and successfully redeemed fifteen of them. In the process it has rewarded it's investors handsomely with consistent returns. A total of over 5.8 million investors have reposed their faith in th e wealth generation expertise of the Mutual Fund. Schemes of the Mutual fund have consistently outperformed benchmark indices and have emerged as the preferred investment for millions of investors and HNIs.


Today, the fund manages over Rs. 42,100 crores of assets and has a diverse profile of investors actively parking their investments across 38 active schemes. The fund serves this vast family of investors by reaching out to them through network of over 130 points of acceptance, 29 investor service centers, 59 investor service desks and 6 Investor Service Points. SBI Mutual is the first bank-sponsored fund to launch an offshore fund Resurgent India Opportunities Fund. Growth through innovation and stable investment policies is the SBI MF credo.

RELIANCE Mutual Fund

Reliance Mutual Fund ('RMF'/ 'Mutual Fund') is one of Indias leading Mutual Funds, with Average Assets Under Management (AAUM) of

Rs. 1,02,066 Crores and an investor count of over 72 Lakh folios. (AAUM and investor count Oct - Dec, 2010) Source : Reliance Mutual Fund, a part of the Reliance Group, is one of the fastest growing mutual funds in India. RMF offers investors a well-rounded portfolio of products to meet varying investor requirements and has presence in 159 cities across the country. Reliance Mutual Fund constantly endeavors to launch innovative products and customer service initiatives to increase value to investors. Reliance Capital Asset Management Limited (RCAM) is the asset manager of Reliance Mutual Fund. RCAM a subsidiary of Reliance Capital

Limited, which holds 93.37% of the paid-up capital of RCAM, the balance paid up capital being held by minority shareholders.

Reliance Capital Ltd. is one of Indias leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital Ltd. has interests in asset management, life and general insurance, private equity and proprietary investments, stock broking and other financial services.

Sponsor Trustee Investment Manager / AMC Statutory Details

: Reliance Capital Limited : Reliance Capital Trustee Co. Limited : Reliance Capital Asset Management Limited

: The Sponsor, the Trustee and the Investment Manager are incorporated under the Companies Act 1956.

UTI Mutual Fund

The most trusted brand, admired by all stakeholders The largest and most efficient money manager with global presence The best in class customer service provider The most preferred employer The most innovative and best wealth creator


A socially responsible organisation known for best corporate governance Genesis January 14, 2003 is when UTI Mutual Fund started to pave its path following the vision of UTI Asset Management Co. Ltd. (UTIAMC), which was appointed by UTI Trustee Co, Pvt. Ltd. for managing the schemes of UTI Mutual Fund and the schemes transferred/migrated from the erstwhile Unit Trust of India.

UTIAMC provides professionally managed back office support for all business services of UTI Mutual Fund in accordance with the provisions of the Investment Management Agreement, the Trust Deed, the SEBI (Mutual Funds) Regulations and the objectives of the schemes. State-of-the-art systems and communications are in place to ensure a seamless flow across the various activities undertaken by UTIMF. Since February 3, 2004, UTIAMC is also a registered portfolio manager under the SEBI (Portfolio Managers) Regulations, 1993 for undertaking portfolio management services. UTIAMC also acts as the manager and marketer to offshore funds through its 100 % subsidiary, UTI International Limited, registered in Guernsey, Channel Islands. AUM UTIAMC presently manages a corpus of over Rs. 65,38,724.42 lakhs as on 31st December 2010 (source: UTI Mutual Fund has a track record of managing a variety of schemes catering to the needs of every class of citizens. It has a nationwide network consisting 148 UTI Financial Centres (UFCs) and UTI International offices in London, Dubai and Bahrain. UTIAMC has a well-qualified, professional fund management team, which has been fully empowered to manage funds with greater efficiency and

accountability in the sole interest of the unit holders. The fund managers are ably supported by a strong in-house securities research department. To ensure investors interests, a risk management department is also in operation. Reliability UTIMF has consistently reset and upgraded transparency standards. All the branches, UFCs and registrar offices are connected on a robust IT network to ensure cost-effective quick and efficient service. All these have evolved UTIMF to position as a dynamic, responsive, restructured, efficient and transparent entity, fully compliant with SEBI regulations. Investment Philosophy UTI Mutual Funds investment philosophy is to deliver consistent and stable returns in the medium to long term with a fairly lower volatility of fund returns compared to the broad market. It believes in having a balanced and welldiversified portfolio for all the funds and a rigorous in-house research based approach to all its investments. It is committed to adopt and maintain good fund management practices and a process based investment management. UTI Mutual Fund follows an investment approach of giving as equal an importance to asset allocation and sectoral allocation, as is given to security selection while managing any fund. It combines top-down and bottom-up approaches to enable the portfolios/funds to adapt to different market conditions so as to prevent missing an investment opportunity. In terms of its funds performance, UTI Mutual Fund aims to consistently remain in the top quartile vis--vis the funds in the peer group.


ICICI Mutual Fund

ICICI Prudential Asset Management Company Ltd. is a joint venture between ICICI Bank, Indias second largest commercial bank & a well-known and trusted name in the financial services in India, & Prudential Plc, one of the United Kingdoms largest players in the financial services sectors.

In a span of just over 12 years, the company has forged a position of preeminence as one of the largest Asset Management Companys in the country, contributing significantly towards the growth of the Indian mutual fund industry.

Our Average Assets under Management (AAUM) as on Dec 2010 month-end in Mutual Fund Schemes stood at Rs. 65876.5 Crores. This is in addition to our Portfolio Management Services, inclusive of EPFO*, and International Advisory Mandates for clients across international markets in asset classes like Debt, Equity and Real Estate with primary focus on risk adjusted returns.

As an Asset Management Company, we have over 15 years of experience and are currently managing a comprehensive range of schemes of more than 46 Mutual funds and a wide range of PMS Products for our investors, spread across the country. We service this investor base with our own branch network of over 160 branches and a distribution reach of over 42,000 channel partners.



ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) at 31st March, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended 31st March, 2010. The Bank has a network of 2016 branches and about 5219 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). Prudential Plc (formerly known as Prudential Corporation plc)

Prudential plc is an international financial services group with significant operations in Asia, the US and the UK. They serve approximately, 25 million customers and have 290 billion in assets under management. They are among the leading capitalized insurers in the world with an Insurance Groups Directive (IGD) capital surplus estimated at 3.4 billion (as at 31 December 2009).

The Group is structured around four main business units: Prudential Corporation Asia (PCA) PCA is a leading life insurer in Asia with presence in 12 markets and a top three position in seven key locations: Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, and Vietnam. PCA provides a comprehensive range of savings, protection and investment products that are specifically designed to meet the needs of customers in each of its local markets. PCAs asset management business in Asia has retail operations in 10 markets and it independently manages assets on behalf of a wide range of retail and institutional investors across the region. Jackson National Life Insurance Company Jackson is one of the largest life insurance companies in the US, providing retirement savings and income solutions to more than 2.8 million customers. It is also one of the top five providers of variable and fixed index annuities in the US. Founded nearly 50 years ago, Jackson has a long and successful record of providing effective retirement solutions for their clients. Prudential UK & Europe (PUE) PUE is a leading life and pensions provider to approximately 7 million customers in the UK.It has a number of major competitive advantages including significant longevity experience, multi-asset investment capabilities, a strong investment track record, a highly respected brand and financial strength. PUE continues to focus on its core strengths including its annuities, pensions and investment products where it can maximize the advantage it has in offering with-profits and other multi-asset investment funds.


M&G M&G is Prudentials UK and European fund management business with total assets under management of 174 billion (as at December 31, 2009).M&G has been investing money for individual and institutional clients for nearly 80 years. Today it is among the largest investors in the UK stock market, as well as being a powerhouse in fixed-income investments.

HDFC Mutual Fund

HDFC Asset Management Company Limited (AMC)

HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000.

The registered office of the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai - 400 020.

In terms of the Investment Management Agreement, the Trustee has appointed the HDFC Asset Management Company Limited to manage the Mutual Fund. The paid up capital of the AMC is Rs. 25.161 crore.

Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund, following a review of its overall strategy, had decided to divest its Asset Management business in India. The AMC had entered into an agreement with


ZIC to acquire the said business, subject to necessary regulatory approvals.

On obtaining the regulatory approvals, the following Schemes of Zurich India Mutual Fund have migrated to HDFC Mutual Fund on June 19, 2003. These Schemes have been renamed as follows: Former Name Zurich India Equity Fund Zurich India Prudence Fund Zurich India Capital Builder Fund Zurich India TaxSaver Fund Zurich India Top 200 Fund Zurich India High Interest Fund Zurich India Liquidity Fund Zurich India Sovereign Gilt Fund New Name HDFC Equity Fund HDFC Prudence Fund HDFC Capital Builder Fund HDFC TaxSaver HDFC Top 200 Fund HDFC High Interest Fund HDFC Cash Management Fund HDFC Sovereign Gilt Fund*

*HDFC Sovereign Gilt Fund has been wound up in March 2006

The AMC is managing 28 open-ended schemes of the Mutual Fund viz. HDFC Growth Fund, HDFC Equity Fund, HDFC Top 200 Fund, HDFC Capital Builder Fund, HDFC Core & Satellite Fund, HDFC Premier Multi-Cap Fund, HDFC Index Fund, HDFC Long Term Advantage Fund, HDFC TaxSaver, HDFC Arbitrage Fund, HDFC Mid-Cap Opportunities Fund, HDFC Balanced Fund, HDFC Prudence Fund, HDFC Childrens Gift Fund, HDFC Gold Exchange Traded Fund, HDFC MF Monthly Income Plan, HDFC Multiple Yield Fund, HDFC Multiple Yield Fund- Plan 2005, HDFC Income Fund, HDFC High Interest Fund, HDFC Short Term Plan, HDFC Short Term Opportunities Fund, HDFC Medium Term Opportunities Fund, HDFC Gilt

Fund and HDFC Floating Rate Income Fund , HDFC Liquid Fund, HDFC Cash Management Fund and HDFC Quarterly Interval Fund.

The AMC is also managing 7 closed ended Schemes of the HDFC Mutual Fund viz. HDFC Long Term Equity Fund, HDFC Infrastructure Fund, HDFC Fixed Maturity Plans - Series XI, HDFC Fixed Maturity Plans - Series XII, HDFC Fixed Maturity Plans - Series XIV, HDFC Fixed Maturity Plans - Series XV and HDFC Fixed Maturity Plans - Series XVII. The AMC is also providing portfolio management / advisory services and such activities are not in conflict with the activities of the Mutual Fund. The AMC has renewed its registration from SEBI vide Registration No. - PM / INP000000506 dated December 21, 2009 to act as a Portfolio Manager under the SEBI (Portfolio Managers) Regulations, 1993. The Certificate of Registration is valid from January 1, 2010 to December 31, 2012.

BIRLA Mutual Fund

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. Heritage The Aditya Birla Group The Aditya Birla Group is one of India's largest business houses. Global in vision, rooted in Indian values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. The Group operates in 26 countries India, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos, Indonesia, Philippines, UAE, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia, Bahrain and Korea. A US $29 billion corporation in the League of Fortune 500, the Aditya Birla Group is anchored by an extraordinary work force of 130,000 employees, belonging to 40 different nationalities. Over 60 per cent of its revenues flow from its operations across the world. The Aditya Birla Group is a dominant player in all its areas of operations viz; Aluminium, Copper, Cement, Viscose Staple Fibre, Carbon Black, Viscose Filament Yarn, Fertilisers, Insulators, Sponge Iron, Chemicals, Branded Apparels, Insurance, Mutual Funds, Software and Telecom. The Group has strategic joint ventures with global majors such as Sun Life (Canada), AT&T

(USA), the Tata Group and NGK Insulators (Japan), and has ventured into the BPO sector with the acquisition of TransWorks, a leading ITES/BPO company. 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.

KOTAK Mutual Fund

The topmost mutual funds firm in India and it is promoted by Kotak Mahindra Bank. Kotak Mahindra Mutual Fund's asset manager is Kotak Mahindra Asset Management Company Limited which is a fully owned subsidiary company of Kotak Mahindra Bank. A glance at Kotak Mahindra Mutual Fund: Kotak Mahindra Mutual Fund started its schemes in December 1998 and it is promoted by Kotak Mahindra Bank which is one of the country's topmost financial institutions that provides a wide range of financial solutions such as investment banking, commercial banking, life insurance and stock broking.

The asset manager of Kotak Mahindra mutual fund is Kotak Mahindra Asset

Management Company Limited which is a fully owned subsidiary company of Kotak Mahindra Bank.

Kotak Mahindra Mutual Fund manages the assets of around 434,504 investors in a wide range of schemes. According to estimates of August 2006, Kotak Mahindra Mutual Fund had assets of more than Rs. 12,530 crores under its management. It is the first mutual fund firm in India to start a scheme of dedicated gilt that would make investment in securities of government only. The Chief Executive Officer of the Kotak Mahindra Asset Management Company is Mr. SandeshKirkire and its Chief Operations Officer is Mr. R. Krishnan. Awards received by Kotak Mahindra Mutual Fund are:


Various schemes offered by Kotak Mahindra Mutual Fund are:

Kotak Lifestyle Kotak Mid-Cap Kotak Global India Kotak Flexi FOF Series I Kotak Opportunities Kotak Dynamic FOF Kotak Floater Short Term Kotak Income Plus Kotak Twin Advantage Series III



Table 4.1

Particulars 18-25 26-40 41-55 Above 55 Total

No. of respondents 16 37 17 5 75

Percentage 21 50 23 6 100

Chart 4.1
60 50 50

40 respondents 21 20 23 percentage



0 18 - 25 26 - 40 41 - 55 Category 4

INTERPRETATIONAn analysis of the above table reveals that 71% of the respondents are below 40 age group and 23% of the respondents are between 41 to 55 age group and 6% of the respondents are above 55 age.

Table 4.2

Particulars Male Female Total

No. of respondents 58 17 75

Percentage 77 23 100

Chart 4.2

140 120 100 77 80 60 40 20 0 Male Female 23 PERCENTAGE RESPONDENTS

INTERPRETATION:An analysis of the above table reveals that 23% of the respondents are female and 77% of the respondents are male.


Table 4.3 Particulars PUC Graduation Post Graduation Professional Total Chart 4.3 No. of respondents 15 41 16 3 75 Percentage 20 55 21 4 100

4 20 21 puc graduation pg professional


INTERPRETATION: An analysis of the above table reveals that 20% of the respondents are having the qualification of P.U.C., then 55% of the respondents were graduates, 21% of the respondents were post graduates and around 4% of the respondents were professionals.


Table 4.4 Particulars (Years) Salaried Business Professionals Others Total Chart 4.4 46 11 10 8 75 61 15 13 11 100 No. of respondents Percentage

11 13 salaried 15 61 business professionals others


An analysis of the above table reveals that 61% of the respondents are salaried employees, around 15% of respondents are owning business, 13% of the respondents are professionals and 11% of the respondents are having other occupation.

Table 4.5

Particulars (Rs.) Below 20000 20000 30000 Above 30000 Total Chart 4.5

No. of respondents 39 21 15 50

Percentage 52 28 20 100

100 90 80 70 60 50 40 30 20 10 0 below 20000 20000 - 30000 above 30000 52 28 20 respondents percentage

INTERPRETATION: An analysis of the above table reveals that 52% of the respondents earn below Rs.20000 per month, then 28% of the respondents earn between Rs.20000 - 30000 per month and around 20% of the respondents earning level in above Rs.30000 per month.


Table 4.6 particulars No of respondents Percentage




No Total Chart 4.6

15 75

20 100


No 20%

Yes 80%

INTERPRETATION: An analysis of the above table reveals that 80% of the respondents in share khan invested in Mutual Fund and 20% of the respondents invested in other investment option.


Table 4.7 Particulars Low Risk High Return Experienced Investors Diversified investment of the fund Total Chart 4.7 75 100 5 6 No. of respondents 36 27 7 Percentage 48 36 10

50 40 30 20 10 0 low risk high return 48 36 10 6 experienced investors diversified investment of fund percentage respondents

An analysis of the above table reveals that 48% of the respondents invested in mutual fund because of Low Risk, 36% of the respondents are interested in investment in order to receive high return in mutual fund, 10% of the respondents invest by the advice of Experienced Investors, and 6% of the respondents invest because of various other diversified investments.



Table 4.8 Particulars (Rs.) Below Rs.10,000 Rs.10,000-Rs.50,000 Rs.50,000- Rs.1 Lakh Above Rs.1 Lakh Total Chart 4.8 11 75 15 100 No. of respondents 24 18 22 Percentage 32 24 29

35 30 25 20 15 10 5 0 below 10000 10000 - 50000 15 24 32 29

Percentage Respondents


above 100000

INTERPRETATION: An analysis of the above table reveals that 32% of the respondents invested in mutual fund below Rs10000, 24% of the respondents invested between Rs10000 - Rs50000, 29% of the respondents invested between Rs50000 Rs1 lakh and 15% of the respondents invested above Rs1 lakh.

Table 4.9 Particulars SIP LUMPSUM TOTAL No Of Respondents 47 28 75 Percentage 63 37 100

Chart 4.9



Interpretation: An analysis of the above table reveals that Majority of

the respondents that is 63% prefer systematic investment plan and 37%prefer Lump sum investment.



Particulars Brokers Media Internet Others Total Chart 4.10 No Of Respondents 32 26 12 5 75 Percentage 43 35 16 6 100

45 40 35 30 25 20 15 10 5 0 Brokers Media 35 Percentage Respondents 16 6 Internet 43


Interpretation: An analysis of the above table reveals that 43%

of respondents get information through brokers 35% through media 16% through internet and 6% through others.


Particulars More risk more return Less risk less return Others Total Chart 4.11

No of Respondents 23 49 3 75

Percentage 31 65 4 100


Less risk less return


Percentage Respondents

More risk more return








Interpretation: An analysis of the above table reveals that majority of

respondents that is 65% prefer less risk less return and 31% more risk more return and 4% others.


Table 4.12 Particulars UTI ICICI Prudential Reliance Kotak Birla Sun life SBI Franklin Templeton Total Chart No. of respondents 14 9 10 9 5 21 7 75 Percentage 19 12 13 12 7 28 9 100 4.12



INTERPRETATION:An analysis of the above table reveals that 28% of the respondents selected SBI mutual fund, 9% selected Franklin Templeton, 19% preferred UTI mutual fund, 12% chosen ICICI Prudential, 7% preferred Birla Sun Life, 12% selected Kotak mutual fund and 13% of the respondents chose Reliance.

INVESTING PERIOD Table 4.13 Particulars Less than a year 1-5 years Above 5 years Depends on growth Rate Depends on financial status Total Chart 4.13 75 100 No. of respondents 14 23 10 16 12 Percentage 19 31 13 22 16

35 30 25 20 15 10 5 0 less than a year 19


22 16 13 Percentage Respondents

1-5 years

above 5 years

depends on depends on growth rate financial status

INTERPRETATION: An analysis of the above table reveals that 19% of the respondents says that their investing period in mutual fund is less than a year, 31% agreed that it is for 1 5 years, 13% says that it is for above 5 years, 22% of the respondents says that they depend on growth rate where as 16% are under opinion that they depend on financial status.

Table 4.14 Particulars Tax saver funds Index funds Sectoral funds Total No. of respondents 24 36 15 75 Percentage 32 48 20 100

Chart 4.14


20 32 Tax saver funds Index funds Sectoral funds


INTERPRETATION: An analysis of the above table reveals that 32% of the respondents invest on tax saver funds, 48% invest on index funds whereas only 20% invest on sectorial funds.


Table 4.15

Particulars Open Ended Schemes Close Ended Schemes Interval Schemes Total Chart 4.15

No. of respondents 55

Percentage 73



8 75

11 100

140 120 100 80 60 40 20 0 Open ended schemes Close ended schemes Interval schemes 73 Respondents Percentage



INTERPRETATION An analysis of the above table reveals that 73% of the respondents invested in Open-Ended schemes, 16% invested in closeended schemes where as only 11% says that they will invest on interval schemes.



As per the survey it is observed: Male invest more in Mutual Funds than Female. This may be a natural phenomenon since female do not like to take more risk and may not be having income levels as male. More number of young investors are interested in investing in mutual funds. This shows that they are aware of capital market operation. Maximum numbers of investors in capital markets are graduates. Majority of the investors comprised in the survey are earning an income below Rs 20,000 per month. Most of the respondents have given very less importance to investments in corporate securities because they perceive that lots of risk has to be beared in it. Majority of the respondents belong to the young category, but still they do not prefer to take risk in their investment plan. . If we look into the composition of the investments made in mutual funds, 32% of the investors have an investment of below 10,000. This can be attributed to the low income level of majority of the investors. SBI Mutual Fund emerged as the popular mutual fund among the investors of Share Khan. Majority of the investors have preferred open ended scheme in terms of the structure.


On the basis of investment objective, majority of the investors opted for income schemes as it would provide regular and steady income. The investors found index funds as an attractive option for investment. Large numbers of respondents hold their investment within the period of 5 years in mutual funds which may not be a wise decision. Few respondents in Sharekhan are not interested in investing mutual funds because they think it consists of high risk.


Despite of only male investor investing in capital market, even the females should come forward to invest in capital market. The problem of less female investor may be due to either lack of knowledge of capital market or may be due to decrease in income level. The investors must be encouraged by companies to invest in mutual funds and companies must take steps to create awareness about mutual funds in general public. Study shows that investment in mutual funds are done only by graduates, even other category of people based on their educational qualification has to invest in the capital market. Whenever investing in the mutual funds the investors should see that their period of investment should be more than 5 years. Whenever an investor is interested in investing he should take proper consultancy from the advisors and then plan for investing and not just blindly invest in any of the alternatives available for them.


Investment avenues are in umpteen numbers in order to meet a variety of requirements of the investors. The requirements, tastes, and preferences the income- consumption- saving pattern, the wealth distribution and the life style of the investors determine the investment pattern of the investors. These requirements differ according to gender, social class, income, age etc. Therefore the companys design their products keeping in view all the factors which decides the investors requirements. Among the investment alternatives Mutual Funds is one of best and most preferred options. Due to its varied features it has captured the attention of a good number of people. Mutual Funds are designed in a way to fulfill the requirements such as low risk, high return, tax rebate, and balanced growth. The investors can also avail the advantage of a diversified portfolio with a minimal investment. Surveys have revealed that only 2.3% of Indian population are knowledged and have accessed the investment in Capital Market. The reasons could be summed up as the less risk bearing capacity of the people and the recent scams which are taking place in the corporate. It clearly indicates that there is a huge market for capital market investment and related products in India. In this regard Mutual funds seem to be a safer, income generating and growth oriented product which can tackle the problem of high risk associated with investment. The Mutual Fund companies must also try to be as transparent as possible to gain investors confidence. The first and foremost task lies in educating the people about unnoticed facts of capital market investment.





I am pleased to introduce myself K.M MOHSIN as BBM student of SDM College Of Business Management. As part of my curriculum I am conducting the study on MUTUAL FUNDS OF INDIA With reference to Sharekhan Pvt Ltd Mangalore. So I hereby request you to kindly spare your valuable time to fill the questionnaire which will help me in my project work.

Instructions Read the question carefully Put on the corresponding answer

1. Name: .

2. Age: ..


3. SEX: o o Male Female

4. Educational qualification o o o o PUC Graduation PG Professional

5. Occupation o o o o Salaried Business Professionals Others

6. Income: o o o Below 20000 20000 30000 Above 30000


7. Have you invested in Mutual Fund? o o Yes No

8. What is your criteria for the selection of Mutual Fund as your Investment Avenue?

o o o o o

Low risk High return Experienced investors Diversified investment of fund Any other_________

9. How long have you invested in Mutual Funds?

o o o o

Less than 5years 5-10years 11-15years More than 15years


10.What is the amount that you have invested in Mutual Funds? o o o o Less than Rs.10000 10000-50000 50000-100000 More than 100000

11.What investment strategy are you following in Mutual Funds? o o SIP (Systematic Investment Plan) Lump Sum

12.How do you get the market information? o o o o Brokers Media Internet Others (please specify) ________

13.What type of Mutual Fund investment do you prefer? o o o More risk and more return Less risk and less return Others


14.Products of which Mutual Fund houses are invested in? o o o o o o o o Reliance MF SBI MF UTI MF Kotak MF ICIC I MF Franklin Templeton Birla Sunlife Others (Specify)

15.What is the holding period of your investment in Mutual Fund? o o o o o Less than a year 1 to 5 years Above 5 years Depends on growth rate Depends on financial status


16. In which type of fund you want to invest? o o o Tax saver funds Index funds Sectoral funds

17. By structure in which type of schemes have you invested? o o o Open ended schemes Close ended schemes Interval schemes


1. Investment Management by V.K.Bhalla, S CHAND publishing house, 14th edition 2008. 2. Investment Management by Preethi Singh, Himalaya Publishing House, 17th edition 2009. 3.Indian Mutual Funds Handbook A Guide for Industry Professionals and Intelligent Investors.2nd Edition by SundarSankaran. 4. Mutual Fund Year Book 2000 a joint publication of Association of Mutual Funds in India (AMFI) and Unit Trust of India Institute of Capital Markets (UTIICM) by Shri D. R. Mehta, Chairman, SEBI.

1. 2. 3. 4. www. 5.