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Aparna Kumar Madhurima Gupta Yash Jejani Namrata Joshi Bhagyashree Kedia Richa Khaneja Heera Lenka

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To get insight knowledge about Mutual Funds To know the mutual fund performance in the present markets To analyze the comparative study between other leading mutual funds in the present markets To know the awareness of mutual funds among different groups of investors To evaluate consumer feedback on Mutual Funds.

Financial markets

Commodity markets

Capital markets

Money markets

Forex market

Security markets

Long term loans /bonds

Primary /New issue market

Secondary market

A mutual fund is a professionally managed type of collective investment scheme That pools money from many investors To buy stocks, bonds, shortterm money market instruments, and other securities.

INDIA - one of the fastest growing markets. Major factor contributing to the success is the booming stock market with optimistic economy. An other factor is the favorable regime enforced by SEBI. It is growing despite global crisis (2008) AUM has grown from Rs 3 lakh crore in Sept 06 to Rs 7 lakh crore in Sept 11.

Above 34 players and more than 1150 schemes. Heavy outflows triggered by market volatility. Partnering of AMCs with banks to increase the strength of distribution networks. A sharp fall in investment in equity based funds. Huge outflow of funds around 40 % of retail investors exited from equity funds.

While Traditional products dominate in India, new products like Exchange Traded Funds (ETFs), Gold ETFs, Capital Protection and Overseas Funds have been gaining popularity. Systematic Investment Plan (SIP) has emerged as a suitable solution in this case, with a fixed amount invested at regular intervals, and most importantly being low risk. Emergence of FMPs.

Industry Investor Mix

17.90

3.77 3.91

5.21
6.01 8.34

11.48 %

1)Liquidity 2)Transparancy 3)Affordability 4)Diversification 5)Government support by way of tax concessions 6)Volatility of bank interest

1)Poor participation of retail investors 2)Distribution is confined only to metro cities 3) Cost pressures 4) Lack of financial literacy

1)Huge untapped market. 2)High level of savings among people. 3)Using on online mode of trading system. 4)Fund houses should emphasize on off shore segment.

1)Increasing competition. 2)High level of volatility in stock market. 3)Possibility of more stringent regulations by SEBI, RBI, AMFI in future.

Name of the Companies


Reliance State bank of India(SBI) Birla Sunlife

Tata
HDFC ABN Amro AIG

HSBC

Edelweiss
JP Morgan Kotak Mahindra bank JM financial Goldman Sachs UTI(Unit Trust of India) Standard Chartard

Bank of Baroda
Canara bank ICICI

DBS Cholamandalam AMC


DSP Merrill lynch

Fidelity
Franklin Templeton

Top Performing Schemes


Large Cap Fidelity Equity Fund Franklin India Blue Chip ICICI Pru Focused Blue Chip Equity UTI opportuanities Fund Mid and Small Cap Birla Sun Life MNC fund HDFC mid cap IDFC premier equity SBI Magnum Emerging business

Analysis of some top performing MFs

Franklin India Blue-chip Fund

Investment type = General Equity Fund Category = Large Cap Fund Type = Open Ended Asset Size = 4261.77 cr Minimum investment = Rs. 5000 Exit Load = 1 % Crisil Rank = 1 Fund Manager = Anand Radhakrishnan

Sector Wise Allocation


Sector %

-- 1-Year -High 19.83 Low 17.12

Banking/ Finance

17.25

Technology
Oil & Gas Telecom Utilities Pharmaceutical

13.70
11.12 9.76 8.50 7.17

13.70
13.10 11.25 8.55 7.17

8.42
9.63 9.04 6.56 3.15

Asset Allocation (%) (Dec 30, 11) Equity Others

93.28 0.00

Debt
Mutual Funds Money Market Cash / Call

0.03
N.A 0.00 6.69

Investment type = General Equity Fund Category = Large Cap Fund Type = Open Ended Asset Size = 3,370.77 crs. Minimum Investment = Rs.5000 Exit Load = 1% Crisil Rank = Rank 1 Fund mamager = Sandeep Kothari / Subramanian Balakrishnan

Fidelity Equity Fund

Asset Allocation (%) (Oct 31, 11)


Equity Others Debt 89.90 0.71 0.00

Asset Allocation

Mutual Funds
Money Market Cash / Call

0.86
0.00 8.53

Essentials for a good scheme

Customer friendly
Researched Fund Possibilities Should help the buyers with investment and taxation basics of mutual funds Should have a BMO investment professional to guide which scheme to be selected Should be well balanced Should yeild good returns

1. HDFC Mutual Fund


Inception Date June 30th 2000 Trustee HDFC Trustee Company Ltd. Top Performing Schemes AUM as on 30th April 11 + HDFC Top 200 (2338 cr) + HDFC Equity (2759.30 cr) + HDFC MIP Long-term (887.90 cr)

2.Tata Mutual Fund


Inception Date June 30th 1995 Trustee Tata Trustee Company Pvt. Ltd. Top Performing Schemes AUM as on 30th April 11 + Tata Pure Equity (269.95 cr) + Tata Index Nifty (6.77 cr) + Tata Short-term Bond (292.08 cr)

3. SBI Mutual Fund


Inception Date June 29th 1987 Trustee SBI Mutual Fund Trustee Company Pvt. Ltd.

Top Performing Schemes AUM as on 30th April 11


+ Magnum Contra (1,958.50 cr) + Magnum Balanced (333.11 cr) + Magnum Multiplier Plus (687.15 cr)

4. Reliance Mutual Fund


Inception Date - June 30th 1995 Trustee Reliance Capital Trustee Company Ltd. Top Performing Schemes AUM as on 30th April 11 + Reliance MIP (168.52 cr) + Reliance Banking Retail (681.25 cr) + Reliance Diversified Power Sector Fund (3809.57 cr)

5. DSP BlackRock Mutual Fund


Inception Date December 16th 1996 Trustee DSP Merrill Lynch Trustee Company Pvt. Ltd.

Top Performing Schemes AUM as on 30th April 11


+ DSPBR top 100 Equity (1167.08 cr) + DSPBR Equity (919.77 cr) + DSPBR GSF Longer Duration (425.67 cr)

Research design: The Research Design used here is Descriptive Research Design Primary data collected through Personal Interviews and Questionnaire Secondary data collected through Internet and Web Search

1)Of the following what at present are your investment needs: To build a corpus for retirement To save for children education/marriage To provide for medical emergencies To provide for family financial security To create wealth All of the above 2)Which of the following you think as investment for tax-saving? Mutual funds Fixed Deposit Insurance PPF All of the above

3) If you had Rs.1000, where you prefer to invest? Mutual Fund Fixed Deposit Direct Equity Life Insurance Postal Office Deposit 4) Do you think Mutual Funds are a risky Investment Option? Yes No 5) On whose advise do you select a Mutual Fund Scheme? Personal Decision Financial Planners advise Brokers Advice Friends & Family Media

30 25 20 15 10 5 0 EMPLOYEE STUDENTS BUSINESS OTHERS

OCCUPATION

Investment Needs
To build a Corpus for Retirement To save for Children Education/Marriage To provide for medical emergencies To create wealth All of above

35 30 25 20 15 10 5 0

TAX SAVINGS SCHEME

MUTUAL FUNDS

FIXED DEPOSITS

INSURANCE

PPF

RESPONSE

23 27
RISKY
NON-RISKY

Fianancial Planer 9 5
11

4 21

Broker's advise Friends & Family Media

Personal Decision

Rising Disposable Income and Savings. Investment in Banks are no longer attractive. Increase in number of educated white collar employees. Foreign based asset management companies are entering India. SEBI has allowed introduction of Commodity Mutual Funds.

Mutual Funds industry is penetrating into rural & semi urban areas. Growth Rate of MF was 100% in the last 6 yrs & is expected to grow even more. It has been predicted that by March-end of 2012, the MF Industry of India will reach Rs 99,90,000 crore, taking into account the total assets of the Indian commercial banks . Product innovation Distribution channel innovation Quality Financial Planning

KPMG in India is of the view that the Indian mutual fund industry may grow at the rate of 22 to 25 percent in the period from 2010 to 2015. AUMs will grow at 15% to 25% between 2010-2015.