Analysis of mutual funds help of karvy finance

SUMMER TRAINING PROJECT REPORT

ON

ANALYSIS OF MUTUAL FUNDS HELP OF KARVY

Submitted for the partial fulfillment towards the awards of the degree in Master of Business Administration of Dr. A.P.J Abdul Kalam Technical

University, Lucknow.

Submitted by:

MOHIT GUPTA

1513370056

(Batch:2015-17)

Under the supervision of

Mr. IMRAN ALI

DEPARTMENT OF MBANoida Institute of Engineering and

Technology(NIET), 19 Knowledge Park IIGreater Noida, G.B.Nagar (UP), India-201306

[1]

STUDENT’S DECLARATION

“I hereby declare that, the project entitled “Analysis of Mutual Funds Help

of Karvy” assigned to me for the partial fulfillment of MBA degree from

Dr. A. P. J. Abdul Kalam Technical University, LUCKNOW. The work

is originally completed by me and the information provided in the study is

authentic to the best of my knowledge.

This study has not been submitted to any other institution or university for

the award of any other degree.

MOHIT GUPTA

MBA 3rd SEM

RollNo-1513370056

Noida Institute of Engineering and Technology

[2]

ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mr. Pawan kumar pandey, Sr.,

Karvy Computershare Pvt Ltd.,for his able guidance, continuous support and

cooperation throughout my project, without which the present work would not have been

possible.

Also, I am thankful to my faculty guide Mr. Imran Ali of my institute, for his continued guidance and invaluable encouragement.

MOHIT GUPTA

MBA 3rd SEM

RollNo-1513370056

Noida Institute of Engineering and Technology

[3]

Table of ContentsChapter number Title of the chapter Page number

I

INTRODUCTION OF THE MUTUAL FUND 6-9

OBJECTIVES OF THE STUDY 10-11

SCOPE OF THE STUDY 12-13

LIMITATIONS OF THE STUDY 14-15

EXECUTIVE SUMMARY 16-18

IIINTRODUCTION OF THE COMPANY 19-21

HISTORY OF KARVY 22-30

COMPANY BOARD OF DIRECTOR 31-41

COMPETITORS PROFILE 42-60

IIIRESEARCH METHODOLOGY 61-62

RESEARCH PROCESS 63-68

IV DATA ANALAYSIS 69-81

VFINDING OF THE STUDY 82-84

RECOMMENDATIONS 85-87

CONCLUSION 88-94

[4]

INTRODUCTION OF THE MUTUAL FUND

[5]

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. The history of

Mutual Funds in India can be broadly divided into four distinct phases.

First Phase-1964-1987:

An act of parliament established Unit Trust of India (UTI) on 1963. It was set up by the

Reserve Bank of India and functioned under the regulatory and administrative control of

the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial

Development Bank of India (IDBI) took over the regulatory and administrative control in

place of RBI. The first scheme launched by UTI was unit scheme 1964. At the end of

1988 UTI had Rs.6700 cores of assets under management.

Second Phase-1987-1993 (Entry of Public Sector Funds):

1987 marked the entry of non-UTI public sector mutual funds setup by public sector

banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation

of India (GIC). SBI Mutual Fund was the first non-UTI Mutual Fund established in June

1987 followed by Canara Bank Mutual Fund (Dec 87), Punjab National Bank Mutual

Fund (Aug 89), Indian Bank Mutual Fund (Nov 89) Bank of India (June 90), Bank of

Baroda Mutual Fund (Oct 92).LIC established its mutual fund in June 1989 while GIC

had setup its Mutual Fund in December 1990.

At the end of 1993, the Mutual Fund industry had assets under management of Rs.47, 004

corers.

Third phase-1993-2003 (Entry of Private Sector Funds):

[6]

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 in to being, under which all

Mutual Funds, except UTI were registered and governed. The erstwhile kothari pioneer

(now merged with Franklin Templeton) was the first private sector Mutual Fund

registered in July 1993.In the 1993 SEBI (Mutual Fund) Regulation 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 the total

assets of 1, 21,805 corers. The Unit Trust of India with Rs.44, 541 corers of assets under

management was way ahead of other Mutual Funds.

Fourth Phase-since February 2003:

In the 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 corers 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 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 SEBI and functions under the Mutual Fund Regulations. With

the bifurcation of the erstwhile UTI which had in March 2000 more than Rs. 76,000

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crores of assets under management and with the setting up of a UTI Mutual Fund,

conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place

among different private sector funds, the mutual fund industry has entered its current

phase of consolidation and growth. As at the end of October 31, 2010 there were 31

funds, which manage assets of Rs. 1, 26,726 crores under 386 schemes.

[8]

OBJECTIVES OF THE STUDY

[9]

In this project report conducted there is more than one objective taken which are given

below:-

To study the investment pattern of people in various options available like: banks,

post office, L.I.C., shares etc.

To study the investment pattern of people in mutual fund.

To find out which type of mutual fund is preferred by the investors.

Study factor responsible for the low investment in mutual funds.

To study if people are aware of the different services provided by the KARVY.

To study about different facilities of KARVY and its impact on attracting more

customers.

To study, what is the locking period preferred by the people?

To study, what percentage of income do people invest in mutual fund?

To study, how much money can people invest in mutual fund?

To study the risk factor involved in mutual fund.

To study which mediator service do people to invest in shares, debentures etc

[10]

[11]

SCOPE OF THE STUDY

This study will help to make the new strategies and policies of the company.

Scope of the study is as follows:

1. A comparative study of the various securities investors and the marketing

strategy, which will help to compare the service and the qualities with others.

2. Investor’s earlier expectation, what they want from the Karvy Consultants

Ltd. and how much are they satisfied with the service, being provided by the

company.

3. Consumer’s perception towards the brand of Karvy Consultants Ltd. Is it

positive or is it negative. And also find out the reasons behind changing the

attitude of the customers.

4. Various reasons for bad services provided by the company and others non

fulfillment comment.

5. By this project Report Company can easily find out the targeted persons in

terms of demography.

6. New ideas from the customers that may be useful for the company and to find out

the response and network position used by Karvy Consultants Ltd.

[12]

LIMITATIONS

[13]

LIMITATIONS OF THE STUDY

1. The major limitation of the study was to get appointments from corporate and bank executives. It took weeks to get appointments. Most of them refuse to give appointments for such study purposes.

2. The sample size was more and wide distributed. So there was some difficulty in data collection.

3. Sometimes some samples were not in favor of revealing their investment pattern as they considered it to be very confidential.

4. It was difficult to get the exact answer from various customers.

5. It was certain time for making this research for getting response to customer. And

also I had to get whole research within 45 days.

6. Financial problem also occur in my project daily follow different location for

different customer so expenditure was very costly.

[14]

[15]

EXECUTIVE SUMMARY

In this modern competitive world when business is touching new heights, each & every

company of every industry is trying to make maximum utilization of available resources

with an aim of maximizing sales turnover, profits and above all the customer’s

satisfaction.

For the deep inclination into the management concepts practical work is an

important aspect. Theoretical knowledge gives us the fundamental concepts of

management and practical work teaches us management tact and skills, which are

successfully employed to capture today’s competitive market. The main objective of

Summer Training and Project is getting used to with the necessary theoretical inputs and

to gain sufficient practical exposure to establish distant linkage between the conceptual

knowledge to practical situations. Practical work thus plays an important role in

developing and sharpening one’s skill in the field of business and management and

administration.

There is big fight going on each segment of various types of share market. There exist a

good number of competitive companies in each segment, which are trying hard to sell

maximum number of cases in that segment to snatch maximum market share as it is

directly related to the profits, sales turnover and image of the companies.I had completed

my summer training from Karvy consultants Ltd.

[16]

The whole two month training period was a stress able period as my marketing skills

were explored by the company. Marketing research comprises one of the most important

fascinating facts of the marketing policies of the companies. All the learnt theories seem

too flourished as practical situations in front of me while going through the work in the

training period. Topics like segmenting, targeting, positioning, customer behaviors were

in mind during the time stress.

I was assigned with the project “Analysis of Mutual Funds” in AGRA. In this

report I have tried to cover almost every aspect, which is directly or indirectly related in

this segment in the specified zone Initially, I conducted the pilot survey in which I tried

to know the various related factors. For this, I studied 50 consumers and tried to know

what were their views regarding the brand loyalty in the city and also found good and bad

things about the mutual thing.

I mainly focused on what kind of marketing strategies Karvy consultant Ltd. will require

to develop so as to responsible market share of share market of different brand in this

market region. After collecting the related data from these sources, I analyzed the data

and come up with various strong and weak points, on the basis of which I have derived

certain conclusions and recommendations.

[17]

[18]

INTRODUCTION

In 1982, a group of Hyderabad-based practicing chartered accountants started karvy

consultants limited with a capital of Rs. 1, 50,000 offering auditing and taxation services

initially. Later, it forayed into the registrar and share transfer activities and subsequently

into financial services. All along, karvy’s strong work ethic and professional background

leveraged with information technology enabled it to deliver quality to the individual.

A decade of commitment, professional integrity and vision helped karvy achieve a

leadership position in its field when it handled the largest no of issues ever handled in the

history of the Indian stock market in a year. Thereafter, karvy made inroads into a host of

capital market services, corporate and retail- which proved to be a sound business

synergy.Today, karvy has access to millions of Indian share holders, besides companies,

banks, financial institutions and regulatory agencies. Over the past one and half decades,

karvy has evolved as a veritable link between industry, finance and people. In January

1998, karvy became the first depository participants in Andhra Pradesh. An ISO 9002

company, karvy’s commitment to quality and retail reach has made it an integrated

financial services company.

[19]

PRODUCT & SERVICES

KARVY is providing a wide range of services. Following are its main product &

services:-

1. MUTUAL FUND SERVICE

2. PAN (Permanent Account Number)

3. DEMAT

4. e-TDS (Electronic Tax Depository Service)

5. STOCK BROKING

6. ON LINE TRADING

7. SHARE REGISTRAR

8. INSURANCE

9. MEDICAL TRANSCIPTION

10. ADVISORY SERVICES

11. INVESTMENT BANKING

12. DEPOSITORY SERVICES

13. REGISTRAR & INVESTOR SERVICES

14. PERSONAL FINANCE

[20]

HISTORY OF KARVY

The birth of Karvy was on a modest scale in 1981. It began with the vision and enterprise

of a small group of practicing Chartered Accountants who founded the flagship company

…Karvy Consultants Limited. We started with consulting and financial accounting

automation, and carved inroads into the field of registry and share accounting by 1985.

Since then, we have utilized our experience and superlative expertise to go from strength

to strength…to better our services, to provide new ones, to innovate, diversify and in the

process, evolved Karvy as one of India’s premier integrated financial service enterprise.

Thus over the last 20 years Karvy has traveled the success route, towards building a

reputation as an integrated financial services provider, offering a wide spectrum of

services. And we have made this journey by taking the route of quality service, path

breaking innovations in service, versatility in service and finally…totality in service.

Our highly qualified manpower, cutting-edge technology, comprehensive infrastructure

and total customer-focus has secured for us the position of an emerging financial services

giant enjoying the confidence and support of an enviable clientele across diverse fields in

the financial world.Our values and vision of attaining total competence in our servicing

has served as the building block for creating a great financial enterprise, which stands

solid on our fortresses of financial strength - our various companies.

With the experience of years of holistic financial servicing behind us and years of

complete expertise in the industry to look forward to, we have now emerged as a premier

integrated financial services provider.

[21]

And today, we can look with pride at the fruits of our mastery and experience –

comprehensive financial services that are competently segregated to service and manage

a diverse range of customer requirements.

VISION OF THE COMPANY

As per KARVY-

Our values and vision of attaining total competence in our servicing has served as the

building block for creating a great financial enterprise, which stands solid on our

fortresses of financial strength - our various companies.

[22]

QUALITY POLICY

To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, by

combining its human and technological resources, to provide superior quality financial

services. In the process, Karvy will strive to exceed Customer's expectations. 

QUALITY OBJECTIVES:- 

As per the Quality Policy, Karvy will: 

Build in-house processes that will ensure transparent and harmonious

relationships with its clients and investors to provide high quality of services.

Establish a partner relationship with its investor service agents and vendors that

will help in keeping up its commitments to the customers.

Provide high quality of work life for all its employees and equip them with

adequate knowledge & skills so as to respond to customer's needs.

Continue to uphold the values of honesty & integrity and strive to establish

unparalleled standards in business ethics.

New and innovative financial products and services to meet the changing needs of

investors and clients.

Strive to be a reliable source of value-added financial products and services and

constantly guide the individuals and institutions in making a judicious choice of

same.

Strive to keep all stake-holders (shareholders, clients, investors, employees,

suppliers and regulatory authorities) proud and satisfied. 

[23]

Use state-of –the art information technology in developing new and innovative

financial products and services to meet the changing needs of investors and

clients.

[24]

ACHIEVEMENTS

1. Among the top 5 stock brokers in India (4% of NSE volumes)

2. India's No. 1 Registrar & Securities Transfer Agents

3. Among the to top 3 Depository Participants

4. Largest Network of Branches & Business Associates

5. ISO 9002 certified operations by DNV

6. Among top 10 Investment bankers

7. Largest Distributor of Financial Products

8. Adjudged as one of the top 50 IT uses in India by MIS Asia

9. Full Fledged IT driven operations

[25]

PERFORMANCE OF KARVY

During last few years karvy has performed very well. One can judge its performance in

the following points:-

KARVY is:

Largest mobilize of funds as per PRIME DATABASE.

First ISO-9002 Certified Registrar in India.

A Category-I-Merchant banker.

A Category-I-Registrar to Public Issues.

Ranked as “The Most Admired Registrar” by MARG.

Handled the largest-ever Public Issue.

Handled over 600 Public Issues as Registrars.

First Depository Participant from Andhra Pradesh.

Beside above following are some of the major issues which are managed by KARVY as

arrangers, which also help to understand the good performance of KARVY:-

[26]

Major issues handled as Registrars to Issues:

3M India Limited

ABB limited

Asian Hotels Ltd.

Atlas Cop co India Ltd.

Bank of Baroda

Bharat Earth Movers Ltd.

Bharti Airtel Limited

Biocon Limited

ICICI bank

Infosys Technologies

Jet Airways (India) Ltd.

Maruti Udyog Ltd.

NTPC Ltd.

PVR Ltd.

Reliance Petrolaim Limited

Suzlon Energy Ltd.

UCO Bank

UTI Bank

YES Bank

[27]

Some latest issues-

Atlanta Limited

GMR Infrastructure Ltd.

GVK Power & Infrastructure Ltd.

HOV Services Ltd.

KEW Industries Ltd.

Karvy has also issued some bonds:-

IDBI Flexi Bonds-2 (FDDB)

IDBI Flexi Bonds-2A (Floating Rate)

IDBI Flexi Bonds-3 (FDB)

IDBI Flexi Bonds-4 (IFD)

IDBI Flexi Bonds-5 (BGI)

IDBI Flexi Bonds-7 (GIB)

IDBI Flexi Bonds-7 (RMB)

[28]

KARVY GROUP COMPANIES

Organization structure of the unit (Ghaziabad) in which the training is done

Different departments

[29]

ACCOUNT Sec. (Work as a finance record maintain)

DP (Work as a depository participant)

KSBL (Work as a stock broking)

MFS (Work as a registrar of UTI & RELIANCE etc.)

TIN (Work as a PAN, TAN, and E-TDS Services)

Branch Manager (Work as a head of branch and all departments)

INSURANCE (Work as a insurance services)

COMPANY BOARD OF DIRECTOR

[30]

Mr. WILLIAN STUART CROSHY (CHAIRMAN OF KARVY COMPUTER SHARE)

Mr. MARK DAVIS(DIRECTOR)

Mr. M YUGANDHAR(MANAGING DIRECTOR)

Mr. C PARATHSARTHY(CHAIRMAN & MANAGING DIRECTOR)

Mr. PRASAD V POTTURI(DIRECTOR)

Mr. CHANDRA BALARAMAN(DIRECTOR)

Mr. M S RAMAKRISHNA(DIRECTOR)

[31]

CMD

RIL

DP

VP HR & Adm.

VP MFD

DGM (Operation)

VP Co. Secretary

AGM (System)

Staff

AGM

M.T.

Staff

VP Fin

Advisor Training. & development

VP

DP

RIL

Tech

RIS

Staff

Tech

Training

Sr.Mgr.

Sr. Mgr.

Staff

Staff

DGM

RII

AGM

Staff

Staff

AGM Oper.

Sr. Mgr.

Staff

Corp. Quality

Staff

Staff

Staff

AGM

AGM

Staff

Staff

GM(2)

MGR

GM(1)

Staff

StaffAGM

Staff

ORGANIZATION HIERARCHY OF KARVY CONSULTANTS

MD

VP RIS RII

\KARVY CONSULTANTS LIMITED

As the flagship company of the Karvy Group, Karvy Consultants Limited has always

remained at the helm of organizational affairs, pioneering business policies, work ethic

and channels of progress.

Having emerged as a leader in the registry business, the first of the businesses that we

ventured into, we have now transferred this business into a joint venture with Computer

share Limited of Australia, the world’s largest registrar. With the advent of depositories

in the Indian capital market and the relationships that we have created in the registry

business, we believe that we were best positioned to venture into this activity as a

Depository Participant. We were one of the early entrants registered as Depository

Participant with NSDL (National Securities Depository Limited), the first Depository in

the country and then with CDSL (Central Depository Services Limited). Today, we

service over 6 lakhs customer accounts in this business spread across over 250

cities/towns in India and are ranked amongst the largest Depository Participants in the

country. With a growing secondary market presence, we have transferred this business to

Karvy Stock Broking Limited (KSBL), our associate and a member of NSE, BSE and

HSE.

KARVY COMTRADE LIMITED

At Karvy Commodities, we are focused on taking commodities trading to new

dimensions of reliability and profitability. We have made commodities trading, an

essentially age-old practice, into a sophisticated and scientific investment option.

Here we enable trade in all goods and products of agricultural and mineral origin that

[32]

include lucrative commodities like gold and silver and popular items like oil, pulses and

cotton through a well-systematized trading platform. Our technological and

infrastructural strengths and especially our street-smart skills make us an ideal broker.

Our service matrix is holistic with a gamut of advantages, the first and foremost being our

legacy of human resources, technology and infrastructure that comes from being part of

the karvy group

Our wide national network, spanning the length and breadth of India, further supports

these advantages. Regular trading workshops and seminars are conducted to hone trading

strategies to perfection. Every move made is a calculated one, based on reliable research

that is converted into valuable information through daily, weekly and monthly

newsletters, calls and intraday alerts. Further, personalized service is provided here by a

dedicated team committed to giving hassle-free service while the brokerage rates offered

are extremely competitive.

KARVY COMPUTERSHARE PVT. LIMITEDWe have traversed wide spaces to tie up with the world’s largest transfer agent, the

leading Australian company, Computer share Limited. The company that services more

than 75 million shareholders across 7000 corporate clients and makes its presence felt in

over 12 countries across 5 continents has entered into a 50-50 joint venture with us. With

our management team completely transferred to this new entity, we will aim to enrich the

financial services industry than before. The future holds new arenas of client servicing

and contemporary and relevant technologies as we are geared to deliver better value and

foster bigger investments in the business. The worldwide network of Computer share will

[33]

hold us in good stead as we expect to adopt international standards in addition to

leveraging the best of technologies from around the world.

Issue Registry

In our voyage towards becoming the largest transaction-processing house in the Indian

Corporate segment, we have mobilized funds for numerous corporate, Karvy has

emerged as the largest transaction-processing house for the Indian Corporate sector. With

an experience of handling over 700 issues, Karvy today, has the ability to execute

voluminous transactions and hard-core expertise in technology applications have gained

us the No.1 slot in the business. Karvy is the first Registry Company to receive ISO 9002

certification in India that stands testimony to its stature.

KARVY INSURANCE BROKING PRIVATE LIMITED

At Karvy Insurance Broking Pvt. Ltd., we provide both life and non-life insurance

products to retail individuals, high net-worth clients and corporate. With the opening up

of the insurance sector and with a large number of private players in the business, we are

in a position to provide tailor made policies for different segments of customers. In our

journey to emerge as a personal finance advisor, we will be better positioned to leverage

our relationships with the product providers and place the requirements of our customers

appropriately with the product providers. With Indian markets seeing a sea change, both

in terms of investment pattern and attitude of investors, insurance is no more seen as only

a tax saving product but also as an investment product. By setting up a separate entity, we

would be positioned to provide the best of the products available in this business to our

customers.

[34]

KARVY STOCK BROKING LIMITED

Member-

National Stock Exchange (NSE),

Bombay Stock Exchange (BSE), and

Hyderabad Stock Exchange (HSE)

Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely

towards attaining diverse goals of the customer through varied services. Creating a

plethora of opportunities for the customer by opening up investment vistas backed by

research based advisory services. Helping the customer create waves in his portfolio and

empowering the investor completely is the ultimate goal.

Depository Participants

The onset of the technology revolution in financial services Industry saw the emergence

of Karvy as an electronic custodian registered with National Securities Depository Ltd

(NSDL) and Central Securities Depository Ltd (CSDL) in 1998. Karvy set standards

enabling further comfort to the investor by promoting paperless trading across the

country and emerged as the top 3 Depository Participants in the country in terms of

customer serviced.

Offering a wide trading platform with a dual membership at both NSDL and CDSL, we

are a powerful medium for trading and settlement of dematerialized shares. We have

established live DPMs, Internet access to accounts and an easier transaction process in

[35]

order to offer more convenience to individual and corporate investors. A team of

professional and the latest technological expertise allocated exclusively to our demat

division including technological enhancements like SPEED-e; make our response time

quick and our delivery impeccable. A wide national network makes our efficiencies

accessible to all. To further tap the immense growth potential in the capital markets we

enhanced the scope of our retail brand, Karvy – the Finapolis, thereby providing planning

and advisory services to the mass affluent. Here we understand the customer needs and

lifestyle in the context of present earnings and provide adequate advisory services that

will necessarily help in creating wealth. Judicious planning that is customized to meet the

future needs of the customer deliver a service that is exemplary. The investment planning

for each customer is done with an unbiased attitude so that the service is truly

customized.

Our monthly magazine, Finapolis, provides up-dated market information on market

trends, investment options, opinions etc.

Thus empowering the investor to base every financial move on ratio thought and prudent

analysis and embark on the path to wealth creation.

Deals in Buying and Selling equity shares and debentures on the National Stock Exchange (NSE), the Hyderabad Stock Exchange (HSE) and the

Over-The counter Exchange of India (OTCEI)

[36]

KARVY INVESTORS SERVICES LIMITED

Recognized as a leading merchant banker in the country, we are registered with SEBI as a

Category I merchant banker. This reputation was built by capitalizing on opportunities in

corporate consolidations, mergers and acquisitions and corporate restructuring, which

have earned us the reputation of a merchant banker. Raising resources for corporate or

Government Undertaking successfully over the past two decades have given us the

confidence to re-new our focus in this sector.Our quality professional team and our work-

oriented dedication have propelled us to offer value-added corporate financial services

and act as a professional navigator for long term growth of our clients, who include

leading corporate, State Governments, foreign institutional investors, public and private

sector companies and banks, in Indian and global markets.

We have also emerged as a trailblazer in the arena of relationships, both at the customer

and trade. Our team of committed industry specialists, having extensive experience in

capital markets, further nurtures this relationship.Our financial advice and assistance in

restructuring, divestitures, acquisitions, de-mergers, spin-offs, joint ventures,

privatization and takeover defense mechanisms have elevated our relationship with the

client to one based on unshakable trust and confidence.

Deals in Issue management, Investment Banking and Merchant Banking529, Road No.4Street No.1, Banjara hills, Hyderabad-500034

[email protected]

[37]

KARVY GLOBAL SERVICES LIMITED

The specialist Business Process Outsourcing unit of the Karvy Group. The legacy of

expertise and experience in financial services of the Karvy Group serves us well as we

enter the global arena with the confidence of being able to deliver and deliver well.

Here we offer several delivery models on the understanding that business needs are

unique and therefore only a customized service could possibly fit the bill.

[38]

ALLIANCES OF KARVY

Karvy Computer share Private Limited is a 50:50 joint venture of Karvy Consultants

Limited and Computer share Limited, Australia. Computer share Limited is world's

largest -- and only global -- share registry, and a leading financial market services

provider to the global securities industry.

The joint venture with Computer share, reckoned as the largest registrar in the world,

servicing over 60 million shareholder accounts for over 7,000 corporations across eleven

countries spread across five continents. Computer share manages more than 70 million

shareholder accounts for over 13,000 corporations around the world.

Karvy Computer share Private Limited, today, is India's largest Registrar and Share

Transfer Agent servicing over 300 corporate and mutual funds and 16 million investors.

[39]

INCEPTION

CORPORATE REGISTRY SERVICE

STOCK BROKING SERVICE

FINANCIAL PRODUCTS DISTRIBUTION SERVICES

CORPORATE FINANCE SERVICES

IT ENABLED SERVICES

DEPOSITORY SERVICES

PERSONAL FINANCE ADVISORY SERVICES

DEBT MARKET SERVICES

KARVY GLOBAL SERVICESKARVY COMPUTERSHARE

COMPETITORS PROFILE

[40]

In todays time of cut throat competition no it very difficult for an organization to survive

unless he keeps an eye over the activity of competitors. KARVY is having a lot many

competitors in India. Following are some of its main competitors:-

1. INDIABULLSIndiabulls is India’s leading retail financial services company with 414 locations spread

across 124 cities. While our size and strong balance sheet allow us to provide you with

varied products and services at very attractive prices, our over 5000 relationship

managers are dedicated to serving your unique needs. India bulls serves the financial

needs of more than 3, 00,000 customers with its wide range of financial services &

products.

Indiabulls is lead by a highly regarded management team that has invested crores of

rupees into a world class infrastructure that provides our clients with real-time service &

24/7 access to all information and products. Our flagship India bulls’ professional

network offers real-time prices, detailed data and news; intelligent analytics, and

electronic trading capabilities, right at your finger-tips. It is listed in NSE, BSE,

Luxembourg Stock Exchange, and London Stock Exchange.

Indiabulls offer a full range of financial services and products ranging from equities to

insurance to enhance your wealth and hence, achieve your financial goals. It includes

[41]

derivatives (futures & options), securities, trading, depository services, research &

advisory services, loan against securities, mortgage etc.

Indiabulls client relationship managers are available to help people with financial

planning and investment needs. To provide the highest possible quality of service, India

bulls provide full access to all our products and services through multi-channels.

Indiabulls is ranked 82nd in the list of most valuable companies in India in BT 500.

Market capitalization of India bulls is around 800 million $ & conciliated net worth of the

company is around 500 million $.

[42]

2. MOTILAL OSWAL SECURITIES LTD .

Motilal Oswal Securities Ltd (MOSt) is one of the leading equity research and broking

houses of India. It is known for its strong belief in value-investing ideas, which forms the

crore of its investment philosophy. MOSt provides end-to-end equity solutions to

institutional and individual investors.The company was founded in 1987 as a small sub-

broking unit, with just 2 people running the show. In a recent media report that MOSt

were rated as one of the top 10 brokers in terms of business transacted for FIIs. The retail

business unit provides equity investment solution to more than 1, 61,000 investors

through 1017 outlets spanning 375 cities & 24 states.MOSt has a 2,000 member research

team, which is engaged round the clock in analyzing the Indian economy and corporate

sectors to identify equity investment ideas. More popularly known by its acronym”

Inquire”, the research team staunchly practices value-investing philosophy and advises

investors to take a mature and long-term view of equity investment. Consistent delivery

of high quality advice on individual stocks, sector trends and investment strategy has

established inquire as a competent and reliable research unit amongst leading Indian as

well as International investors. Asia Money Broker’s Poll 2005 has ranked MOSt as one

of the best Indian broking firm, for research, for the third time since 2000 & 2002.The

MOSt sales team, comprising top equity professional, translates the research findings into

actionable advice for you, based on your specific needs. Sophisticated computerized tools

are used to understand your investment profile and objectives, which ensures proactive

and timely service.

[43]

MOSt has distinguished itself by its close relationship with some of the leading Foreign

and Domestic Institutional Investors like Morgan Stanley, Battery March, EMIC, UTI,

LIC, Alliance, ICICI Prudential, HDFC MF, HSBC MF, Birla MF etc.

3. KOTAK

[44]

Kotak Mahindra is one of India's leading financial institutions, offering complete

financial solutions that encompass every sphere of life. From commercial banking, to

stock broking, to mutual funds, to life insurance, to investment banking, the group caters

to the financial needs of individuals and corporate. Kotak Securities Ltd. is India's

leading stock broking house with a market share of around 8.5 % as on 31st March.

Kotak Securities Ltd. has been the largest in IPO distribution. Kotak Securities has 195

branches servicing more than 2, 20,000 customers and coverage of 231 Cities.

Kotaksecurities.com, the online division of Kotak Securities Limited offers Internet

Broking services and also online IPO and Mutual Fund Investments.

Kotak Securities Limited manages assets over 2500 crores of Assets under

Management (AUM) .The portfolio Management Services provide top class service,

catering to the high end of the market. Portfolio Management from Kotak Securities

comes as an answer to those who would like to grow exponentially on the crest of the

stock market, with the backing of an expert.

As on June 30, 2009, the group has a net worth of over Rs.2, 840 crore, and the AUM

across the group is around 182.3 billion and employs over 7,800 employees in its various

businesses. With a presence in 264 cities in India and offices in New York, London,

Dubai and Mauritius, it services a customer base of over 1.6 million.

[45]

4. SHAREKHAN

Sharekhan is India's leading retail financial services company with We have over 250

share shops across 115 cities in India. While our size and strong balance sheet allow us to

provide you with varied products and services at very attractive prices, our over 750

Client Relationship Managers are dedicated to serving your unique needs.

Sharekhan is lead by a highly regarded management team that has invested crores of

rupees into a world class Infrastructure that provides our clients with real-time service &

24/7 access to all information and products. Our flagship Share khan Professional

Network offers real-time prices, detailed data and news, intelligent analytics, and

electronic trading capabilities, right at your finger-tips. This powerful technology

complemented by our knowledgeable and customer focused Relationship Managers. We

are creating a world of Smart Investor Sharekhan offers a full range of financial services

and products ranging from Equities to Derivatives enhance your wealth and hence,

achieve your financial goals.

Share khan Client Relationship Managers are available to you to help with your financial

planning and investment needs. To provide the highest possible quality of service, Share

khan provides full access to all our products and services through multi-channels.

Services provided by the SHAREKHAN:--

[46]

1. Equities & Derivatives: - Comprehensive services for independent

investors, active traders & Non-Resident

Indians.

2. Share khan equity analysis: - Premium research on 401+ companies

updated daily.

3. Depository Services: - Value added services for seamless delivery.

MUTUAL FUND

[47]

I HAVE SEEN MANY ADVERTISEMENTS FOR MUTUAL FUNDS.WHAT ARE THEY? CAN I INVEST IN MUTUAL FUNDS?

We have all heard this term somewhere, especially in advertisements, through those who

closely follow the share market, or even somewhere in the newspaper, mentioned in the

depths of articles on investment.Mutual funds essentially collect money from many

investors, which are then invested by professional managers. These investments could be

in instruments such as shares or bonds. The investor participates in the invested

instruments’ gain and losses in an amount proportionate to his/her investment. You must

take up mutual funds as a serious investment option as they are basically formed to cater

to individuals like you and me.

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 invested by the fund manager in

different types of securities depending upon the objective of the scheme. These could

range from shares to debentures to money market instruments.

The income earned through these investments and the capital appreciation realized by the

scheme is shared by its unit holders in proportion to the number of units owned by them

(pro rata).

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 portfolio at a relatively low

cost. Anybody with an investible surplus of as little as a few thousand rupees can invest

in mutual funds. Each mutual fund scheme has a defined investment objective and

strategy.

[48]

Mutual fund operations flow chartThe flow chart below describes broadly the working of a mutual fund:

POOL THERE MONRY

PASSED BACK TO INVEST IN

GENERATE RETURN

HOW WILL I BENEFIT BY INVESTING IN MUTUAL FUND?

The benefits are plenty, and some of them are….

Professional management

Fund managers, people who are highly qualified in the area of investment and have a

thorough knowledge of the capital market manage mutual funds.

Diversification and lowered risks

Sine a mutual funds is a trust that pools the savings of a number of investors sharing a

common financial goal, the associated risk are greatly reduced. This is also because a

[49]

SHARES, BONDS, OTHER SECURITIES

RETURNS

MUTUAL FUND

INVESTORS

fund will invest your money in different types of instruments like shares and bonds.

Hence, loss in one sphere will not greatly affect your overall investment status.

Low costs

When compared to direct investments in the capital market, mutual funds cost less. This

is due savings in brokerage costs, demat costs, depository costs, etc.

Liquidity

Investments in mutual funds are quite liquid and hence can be redeemed at the net assets

value (NAV)-related price on any working day.

Transparency

All that you invest in a scheme is made known to you are periodically informed about all

the updates and changes taking place.

Flexibility

Mutual funds offer flexibility in their options and schemes to match individual needs.

Also, with features like regular withdrawal plans and systematic investment plans, you

can withdraw or invest funds according to your needs and convenience.

Choice of schemes

Mutual funds offer a vast variety of well-designed schemes and options that you can

choose from depending on your risk appetite.

Tax benefits

Mutual funds offer a host of tax benefits. Dividend income received from investing in

equity and debt schemes of a mutual fund is tax free in the hands of the investors.

Regulation

[50]

Mutual funds are regulated by SEBI (Securities Exchange Board of India) and function

within provisions and regulations that protect the interests of investors. SEBI acts as a

watchdog to ensure fair market practices.

WHAT IS THE STRUCTURE OF THE MUTUAL FUND INDUSTRY?

There are many entities involved in a mutual fund. This is what makes it safer than other

investment avenues. Everyone is accountable for their part in the fund structure.

FIG.2: Orgnisational set up of a mutual fund

[51]

CUSTODIANTRANSFER AGENT

DISTRIBUTORS/AGENTS

INVESTORS

MUTUAL FUNDSPONSORTRUSTEE AMC

Asset management company (AMC): Approved by SEBI, it manages the funds by

making investments in the various types of instruments and securities.

Trustees: hold the mutual fund’s property for the benefit of unit holders. They are an

independent authority set up under the aegis of SEBI.

Custodian: registered with SEBI, it holds the securities of various schemes of the fund in

the custody.

Transfer agents: also known as registrars, transfers the units to the unit holders’

accounts.

Distributors/agents: sell units on behalf of funds and are generally appointed by the

AMC.

BEFORE WE MOVE ON, LET’S UNDERSTAND SOME BASIC TERMINOLOGIES USED IN MUTUAL FUNDS

WHAT IS Net Assets Value?

Net Assets Value (NAV) is the market value of the assets of the scheme minus its

liabilities divided by the units outstanding. Simply put, if the fund is dissolved or

liquidated, by selling off all the assets in the fund, this is the amount that the value of

your investments and to determine the price of per unit for buying or selling.

OPEN-ENDED FUND

An open-ended fund or scheme is one that is available for subscription and repurchase on

a continuous basis. These schemes do not have a fixed maturity period. The key feature

[52]

of open-end schemes is liquidity, as investors can buy and sell on an ongoing basis. Most

mutual funds’ schemes are open-ended.

CLOSE-ENDED FUND

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is

open for subscription only during a specified period at the time of launch. Generally,

investors can invest in the scheme at the time of New Fund Offer (NFO) and thereafter

they can buy or sell the units of the scheme on the exchange where the units maybe listed.

Occasionally, the mutual fund provides a re-purchase option to investors for a specified

period.

PORTFOLIO

Combined holdings of many kinds of financial securities like shares, debentures and

bonds. The objective is risk diversification and maximization of gain of group of assets.

CORPUS

The total amount of money that a fund has at any point of time.

UNIT

A unit represents an investor’s share in the assets of the scheme she/he invested.

LOAD

A load is a one-time sales charge paid by an investor while buying or selling units of a

scheme. An entry load is charged at the time of purchase of units and an exit load is

charged at the time of redemption.

EXPENSES RATIO

Expense ratio is defined as the ratio of total expenses to the net assets of the fund. It is the

annual percentage of the fund’s assets that is paid out in expenses. Expenses include

[53]

management fees and all the fees associated with the fund daily operations. The ratio is

listed in a fund’s offer document. The expense allow for a fund is a percentage of the

weekly average net assets outstanding.

Equity schemes up to 2.5%

Debt schemes up to 2.25%

THE EXPENSE RATIO WILL TELL YOU HOW EFFICIENTLY YOUR MONEY

[54]

THE DIFFERENT KINDS OF MUTUAL FUND

Mutual fund schemes can be broadly classified as equity schemes and debt schemes.

Mutual FundType

Who Should Invest?

Objective Investment Portfolio

Risk Ideal Investment Horizon

Diversified Equity Funds

Moderate and aggressive investors

High growth

Equity shares High 1-3 years

Sector Funds aggressive investors

High growth

Equity shares Very high 1-3 years

Index Funds Moderate investors

To generate returns which are similar to the returns of the respective index

Portfolio index like BSE Sensex, Nifty, etc.

Return of NAV, vary with index performance

1-3 years

Equity Linked Saving Scheme(ELSS)

Moderate and aggressive investors

Long-term growth with tax saving

Equity shares High 1-3 years

Balance Funds Moderate and aggressive investors

Growth and regular income

Balanced ratio of equity and debt fund to ensure higher returns at lower risk

Capital market risk and interest rate risk

Over 2 years

Bond Funds Salaried and conservative investors

Regular income

Predominantly debentures, government securities, corporate bonds

Credit risk and interest rate risk

Over 9-12 months

Gilt Funds Salaried and conservative investors

Security and income

Government securities

Interest rate risk

Over 12 months

Short-Term Funds

Investors with surplus short-term

Liquidity and moderate

Call money, commercial papers,

Little interest rate risk

3weeks- 3 months

[55]

funds income treasury bills, short-term G-securities

Liquid Funds Investors who park their funds in current account or short-term bank fixed deposits

Liquidity + moderate income + preservation of capital

Treasury bills, certificate of deposits, commercial papers, securities, call money

Negligible risk

2 days- 3 weeks

TABLE 1: TYPES OF MUTUAL FUNDS

Emerging funds-

Gold funds

Indians are the largest investors in gold and its various forms. Historically, gold has been

a preferred choice of investment as a hedge against inflation or as a means of security in

bad times. To benefit from this inherent quality of gold, you may soon have a gold fund.

Real estate funds

With continuous migration of people from rural areas to towns, increasing population,

rising income levels and the consequent increase in demand for property, real estate

prices are bound to increase. This is why real estate has also been a preferred investment

alternative for the Indian investor. To tap this potential, real estate funds may soon be

made available.

[56]

List of Mutual Fund Clients

1 Alliance Mutual Fund2 Birla Mutual Fund3 Bank of Baroda Mutual Fund4 Can Bank Mutual Fund5 Chola Mutual Fund6 Deutsche Mutual Fund7 DSP Merrill Lynch Mutual Fund8 Franklin Templeton Investments9 GIC Mutual Fund10 HDFC Mutual Fund11 HSBC Mutual Fund12 IL & FS Mutual Fund13 JM Mutual Fund14 Kotak Mutual Fund15 LIC Mutual Fund16 Punjab National Bank Mutual Fund17 Prudential ICICI Mutual Fund18 Principal Mutual Fund19 Reliance Mutual Fund20 State Bank of India Mutual Fund21 Standard Chartered Mutual Fund 22 Sundaram Mutual Fund23 SUN F&C Mutual Fund24 Tata Mutual Fund

[57]

SWOT ANALYSIS

The overall evaluation of the company’s strength, weakness, opportunity and threat is

called SWOT analysis. Key tool in the strategic process can also apply to career planning.

A SWOT analysis focuses on the internal and external environments, examining strengths

and weaknesses in the internal environment and opportunities and threats in the external

environment.

To construct your own SWOT analysis to set a course for your career planning,

examining your current situation.

What are your strengths and weakness?

How can you capitalize on your strengths and overcome your weakness?

What are the external opportunities and threats in your chosen career field.

STRENGTH:

Strong brand image.

.Wide range of services provided.

Providing better services than its competitors

Wide distribution network & strong work force.

Company is providing various schemes to promote its products.

WEAKNESS:

Lack of advertising

Lack of customer feedback

Geographical coverage in rural areas is remained untapped by the bank.

[58]

Loosing some of its customer, as they are not satisfied

OPPORTUNITIES:

It can capture more market share.

It may enter in new fields.

Can create wider range of products

Can expand its network to other sectors of country where KARVY has not

explored his market.

THREATS:

Competition from strong players at the upper end such as INDIA BULL and other

small and big companies

Entrance of new competitors as KOTAK, Reliance etc.

The company has also some threat form government organizations.

Company may have some threat from the change in policies made by government.

Reliance has also enter his personal demat services; earlier Reliance was the

major account holder in karvy, now it has been shifted.

SEBI also restrict the business of newly account opening. Now karvy can do

business with his existing accountholders.

[59]

[60]

RESEARCH METHODOLOGY

Research methodology is used to search answer of the research questions. An attempt has

been made to describe the nature of people of Agra city, selected for the study of

samples, data collection and technology used to analyze and present the data required.

Methodology in common parlance refers to a search for knowledge. The advanced

learner’s dictionary of current English lays down the meaning of research as an “A

careful investigation or inquiry especially through search for new facts in any branch of

knowledge”. Some people consider research as a movement, movements from known to

the unknown. It is actually a voyage of discovery. We all process the vital instinct of

inquisitiveness for, when the unknown confronts us, we wonder and our inquisitiveness

makes us probe and attain full and fuller understanding of the unknown. This

inquisitiveness is the mother of all the knowledge and the method, which man employs

for obtaining the knowledge of whatever the unknown, can be termed as research.

Methodology is way to systematically solve the research problem. It may be understood

as a science of studying how research is done scientifically.

Learning more about the consumer and about marketing is the heart of research

methodology.

[61]

RESEARCH PROCESS

PROBLEM FORMULATION

RESEARCH DESIGN

SAMPLE DESIGN

DATA COLLECTION TECHNIQUE

FIELD WORK

ANALYSIS & INTERPRETATION

RESEARCH REPORT

[62]

In the planning of the project and survey, the entire schedule of work was decided into

thirteen steps, as follows:-

1. Defining the objective.

2. Defining the population.

3. Frame the sample unit.

4. Data to be collected.

5. Questionnaire and schedule

6. Method of collecting information.

7. Non-respondent classification.

8. Selection of proper sampling design.

9. Organization of the project.

10. Execution of the project.

11. Summary and analysis.

12. Information gained for the further survey.

13. Preparation of the report.

Let us understand above all 13 steps in detail:

1. DEFINING THE OBJECTIVE:-

The main objective is to find out the investment pattern of people in mutual fund. This

report is conducted to depict the behavior the people in making investment specially in

mutual fund.

2. DEFINING THE POPULATION(Sample Size 50):-

[63]

Population refers to the total of items about which information is desired. Here in this

project I have considered finite population means we are taking here one single

individual as single unit which is fixed to filling of 50 questionnaires, each separately by

single individual.

3. FRAME THE SAMPLE UNIT:-

The elementary units or the group or cluster of such units may form the basis of sampling

process in which case they are called as sampling units-a list containing all such sampling

frame consists of a list items from which the sample is to be drawn. It is often impossible

to draw a sample directly from population.

Here in case of this project I simply locate areas and conduct a survey by taking the

information in form of questionnaire. So while conducting this project, an area is taken as

a unit and done survey in many area of the city of Ghaziabad.

4. DATA TO BE COLLECTED:-

There are several ways to collect the data which differ considerably in context of money,

cost, time and other resources.

In this project the data which is required should give details about the behavior of people

in making.

Investment in mutual fund, also the various risk factors involved in mutual fund, so in

this project we require the data which is essential to make a comparison in between these

two groups. The data should be very relevant.

5. QUESTIONNAIRE AND SCHEDULE:-

[64]

To develop an effective questionnaire following points should be kept in mind-

(A) Keep in view the problem to be studied.

(B) Questions should be appropriate and simple and must be constructed with a view to

their forming a logical part of a well thought out tabulation plan. It is necessary to put

open as well as closed ended questions.

(C) Proper sequencing of the questions.

(D) Examined properly and if and error found, it should be removed.

(E) Pre-testing of questionnaire is necessary etc.

6. METHOD OF COLLECTING INFORMATION:-

Normally there are two method of collecting the data:

Primary data

Secondary data

In this project we require data, which is necessary to obtain result and secondary data. In

this case we have collected information through direct communication with respondents

in one form or other or through personal interviews and filling the questionnaire.

7. NON-RESPONDENT CLASSIFICATION:-

It is very necessary to classify the respondents from the sample size who don’t given

proper reply while conducting the research. The reason is that this may create a

systematic bias.

8. SELECTION OF PROPER SAMPLING DESIGN:-

[65]

A sample design is a definite plan for obtaining a sample from a given population.

Here in this the sample size is of 50. Sample design may as well lay down the no. of

items to be included in the sample.

9. ORGANIZATION OF THE PROJECT:-

Fieldwork is done in this project individually with no biasness. The field work comprises

of filling of questionnaire by different sector individuals.

10. EXECUTION OF THE PROJECT:-

Proper execution of project is important. Steps should be taken to ensure that the survey

is under statistical control so that the collected information is in accordance with the pre-

defined standard of accuracy.

If some of the respondents do not cooperate, some suitable method should be designed to

tackle them.

11. SUMMARY AND ANALYSIS:-

Once the data is collected the next task is to analyze them. The raw data should be

classified into some purposeful usable categories as tabulation, coding etc.Analysis work

after tabulation is generally based on the computation of various percentages; coefficients

etc by applying various well defined statistical formulae. Here in this report it is found

that the investment pattern of people in mutual fund is not satisfactory due to lack of

knowledge and also the risk involved in mutual fund.

[66]

12. INFORMATION GAINED FOR THE FURTHER SURVEY:-The information gained for further survey is summarized as under:-

Very less no. of people are interested to invest in mutual fund.

People prefer other options available of investing their money rather than mutual fund.

Risk factor in mutual fund is high.

Many people have shown their willingness to invest in mutual fund.

13. PREPARATION OF THE REPORT:-

Finally report is prepared according to work done. Following point must be kept in mind in this regard:-

1. The layout

2. Report should be concise and simple.

3. Proper charts & diagrams etc must be used if it is necessary.

4. Various limitations in report should be clearly mentioned.

[67]

[68]

PERCENTAGE OF INCOME SAVED/INVEST

30%

40%

16%

14%

10% TO 20% 20% TO 30%30% TO 40% ABOVE 40%

1. WHAT PERCENTAGE OF MONEY DO YOU SAVE/INVEST:-

(a) 10%-20%:15 (b) 20%-30%:20(c) 30%-40% :8 (d) Above 40%:7

GRAPH-1

2. WHERE DO YOU INVEST YOUR MONEY:-

[69]

(a) Shares (b) Debentures (c) Bank Deposits

(d) Mutual Fund (e) Insurance (f) Govt. sec. NSE, PPF etc.

(f) Other……………………………

WHERE DO PEOPLE INVEST THEIR MONEY

05

10152025

Shar

es

Deb

entu

res

Ban

kD

epos

ites

Mut

ual

Fund

s

Insu

ranc

e

NSE

/PPF

Oth

erWHERE DO PEOPLE INVEST THEIR MONEY

GRAPH-2

3. DO YOU KNOW ABOUT MUTUAL FUND?

[70]

(a) YES

(b) NO

(c) NO REPLY

HOW MANY PEOPLE KNOW ABOUT MUTUAL FUND

YES 60%

NO26%

NO REPLY14%

YES NONO REPLY

GRAPH-3

4. DO YOU INVEST IN MUTUAL FUND?

[71]

(a) YES

(b) NO

(c) NO REPLY

HOW MANY PEOPLE INVEST IN MUTUAL FUND

YES28%

NO60%

NO REPLY12%

YES NO NO REPLY

GRAPH-4

5. WHICH TYPE OF MUTUAL FUND DOES YOU PERFER:-

[72]

(a) Open Ended (b) Close Ended (c) Growth/ Equity Fund

(d) Balanced Fund (e) Tax saving Fund (f) Sector Specific Fund

(g) Assured Return Scheme (h) Other……………………………….

0 2 4 6 8 10 12

Open Ended

Growth/ Equity Fund

Tax Saving Fund

Other

TYPE OF MUTUAL FUND PREFERRED BY PEOPLE

TYPE OF MUTUAL FUND PREFERRED BY PEOPLE

GRAPH-5

6. WHAT IS THE EXPECTED RETURN ON YOUR INVESTMENT?

[73]

(a) 4%-6%

(b) 6%-8%

(c) Above 8%..................

EXPECTED RETURN ON INVESTMENT

0

5

10

15

20

25

30

35

(a) 4%-6% (b) 6%-8% (c) Above 8%

EXPECTED RETURN ON INVESTMENT

GRAPH-6

7. WHAT IS THE LOCK IN PERIOD, YOU WOULD PREFER FOR YOUR MONEY IN MONEY INSTRUMENTS? ………………………… (No. of yrs.)

[74]

SHORT TERM

LONG TERM

OTHER

0

5

10

15

20

25

30

NO. OF PEOPLE

NO. OFYEARS

1 to 2 2 to 4 4 to 6 above 6

NO. OF YEARS

LOCK IN PERIOD FOR THE MONEY OF PEOPLE Series2

GRAPH-7

Also there was another category of reply from the people which is clear from the

following pie chart

8. WHICH IS THE SAFEST INVESTMENT IN YOUR VIEW? GIVE REASON?

[75]

SAFEST INVESTMENT IN VIEW OF PEOPLE

02468

10121416

TYPE OF INVESTMENT

NO

OF

PEO

PLE

NO. OF PEOPLE

GRAPH-8

9. WHAT INFLUENCE YOU TO INVEST IN MUTUAL FUND?

[76]

(a) High Return

(b) Friend/ Relative

(c) Tax Benefits

(d) Marketing Condition

(e) Other………………………..

GRAPH-9

10. IF YOU HAVE INVESTED MONEY IN MUTUAL FUND TILL DATE WHAT IS THE AMOUNT?

[77]

AMOUNT OF MONEY INVESTED IN MUTUAL FUND

31%

38%

19%

12%

UPTO 10,000 10,000 TO 20,000 20,000 TO 30,000 ABOVE 30,000

11. WHICH MEDIATOR SERVICE DO YOU TAKE FOR MAKING INVESTMENT IN SHARES, MUTUAL FUNDS ETC.?

[78]

MARKETING AGENT APPROACHING YOU

FINANCIAL CONSULTANTS

FRIENDS/ RELATIVES

OTHERS………………………….

GRAPH-11

12. WOULD YOU LIKE TO AVAIL THE SERVICES OF “KARVY”?

(a) YES

[79]

(b) NO

(c) NO REPLY

22

18

100 5 10 15 20 25

YES

NO

NO REPLY

Series1

GRAPH--12

[80]

FINDING OF THE STUDY[81]

The aim of the research conducted was to find out the “investment pattern of people in

mutual fund”. All the due effort was made to find out the appropriate and confide results.

Following are the various findings of the research so conducted:

Most of the people prefer to get highest return on their investment, viz.above 8%

Most of the people save between 20-30% of their income.

Most of the people prefer short-term investment between one to three years.

Most of the people have regarded shares as the most risky investment.

Most of the people invest their money in the banks and other government

securities.

Not much people know about mutual fund.

Very less number of the people has invested in mutual fund.

Most of the people prefer the open-ended and the tax saving type of mutual fund.

Most of the people have invested in HDFC, RELIANCE, ICICI, etc. mutual fund.

Due to high return on mutual fund people invest in it.

Very less no. of the people have shown their willingness to invest in mutual fund.

Most of the people take service of financial and marketing agent services in

investment in various securities.

Many of the people know about karvy.

Very less people know about e-TDS.

Most of the people possess a pan card.

Very less no. of people know that KARVY is providing PAN, e-TDS, DEMAT

services.

[82]

Not much people are interested to take services of KARVY.

[83]

RECOMMENDATIONS

[84]

The main aim of this report is to find out the investment pattern of people in mutual fund.

Although the company has performed very well in past few years and as a result it holds

a very prime position in current market. But even through while conducting the research

there were many shortcomings on part of the company.

.Many people said that they were not aware of KARVY. So keeping in view all this

points and other factors which I personally felt while conducting the research, I would

like to give following suggestions to the company:-

Company should do more advertising so that it can explore its market. There is

also need to introduce a good marketing campaign in terms of newspaper and

T.V. channels.

Company should pay more attention on customer satisfaction.

Karvy should try to minimize its posting errors.

As the motive of the company is to earn more and more profit so the company

should attract mare customers to invest through various schemes.

More and more emphasis must be given on the research and development.

Proper training programs must be conducting time and again so as to motivate

sales executives and to improve their performance. Most of the sales executive

and employee are not cleared the exam of NCFM yet, which is important for

employee for share market.

Company should try to provide wider range of services.

Company should retain its old customers. While conducting the survey

respondents were found who gave a negative reply for karvy by saying that they

have to waste a lot of time in karvy office so as to avoid grievances.

[85]

Proper attention should be paid on the working of branch offices of KARVY.

Company should come up with new schemes to attract its customers

Company should keep a proper bird eye-view over the competitors activities like:

share khan, Kotak, India bulls, Motilal Oswal etc.

KARVY should try to make people aware about the various services it provides.

Viz. e-TDS, PAN, Online trading, stock broking.

In small cities company should emphasis on increasing franchises.

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CONCLUSION

CONCLUSION

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Today the mutual funs industry manages around Rs 14900 crores of assets and this

amount is not just invested in equities, but also in entire amount of debt instruments.

Mutual funds emerged as a proxy for investing in avenues that are out of reach of most

retail investors, particularly government securities and money market instruments.

Specialization is the order of the day, be it with regard to scheme investment objective or

is targeted investment universe. Given the plethora of options on hand and the hard sell

adopted by mutual funds vying for a piece of your savings, finding the right scheme can

sometimes seem a bit daunting. It’s not just about going with the fund that gives you the

highest returns. It’s also about managing risk and finding funds that suit your risk

appetite and investments needs.

So, question arises how can the retail investor create wealth for himself by investing

through mutual funds? To answer this, above report had brass that what exactly is a

mutual fund.Very simply a mutual fund is an investment is an investment vehicle that

pools in the money of several investors and collectively invests this amount in either the

equity market or the debt market or both depending on the fund’s objectives. This means

one can access either the equity or the debt market, or both without investing directly in

equity or debt.

The recent reforms in India and globalization offer tremendous opportunities to Indian

mutual funds. The Indian mutual fund industry is emerging as one of the strongest

players in the global market by absorbing investment technology and modifying

managerial practices, while thinking and acting with a global vision.players are emerging

in the mutual fund industry, which also indicates the potential in the mutual fund

market.With the changing economic conditions in the country and the change in the bank

rates now the investors are looking to invest in more diversified and safe field and mutual

funds are proving to be the best available option for them.

The growth in the mutual fund industry can be can be ascertained by seeing the growth in

the value of the assets under management as at the end of 1993 mutual fund industry had

assets under management of Rs 47004 crores which increased to 126726 cores as on

October 31, 2009 and to 1,40,000 crores on March 31, 2010.

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Thus it can be said that Mutual Fund industry is moving from infancy to adolescence, the

industry is maturing and the investors and funds are frankly and openly discussing

difficulties opportunities and compulsions and the kind of regulatory environment and the

practices that are evolving within the industry there is no doubt that industry would have

a sustained and regulated growth.

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BIBLIOGRAPHY

BOOKS

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Marketing Research by Philip kotlerResearch Methodology by C.R.KothariIndian mutual funds by Sundar SankaranAmfi module by Ncfm

WEBSITES

www.karvy.com/mfd

www.yellowpages.com

www.indiabulls.com

www.indiatimes.com

www.motilaloswal.com

www.mutualfundsindia.com

www.indiamart.com

www.karvycomtrade.com

www.5paisa.com

NEWSPAPERS Times of India Hindustan times Business Standard

FOR MORE INFORMATION VISIT AT: www.karvy.com

QUESTIONNAIRE

FOR SECURITIES LIMITED

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INVESTMENT PATTERN OF PEOPLE IN MUTUAL FUND

1. PERSONAL DETAILS:-NAME:AGE:ADDRESS:DETAIL OF BUSINESS/PROFESSION:MOB. / PH.NO.:

2. WHAT IS YOUR INCOME:-(a) Below Rs.10, 000/- (b) Rs. 10,000-Rs.20, 000(c) Rs.20, 000-Rs.30, 000/- (d) Rs. 40,000-Rs.50, 000(e) Rs.50, 000 and above………………….. (Plz. Specify) 3. WHAT PERCENTAGE OF MONEY DO YOU SAVE/INVEST:-(a) 10%-20% (b) 20%-30%(c) 30%-40% (d) Above 40%................

4. WHAT IS THE EXPECTED RETURN ON YOUR INVESTMENT?(a) 4%-6% (b) 6%-8% (c) Above 8%..................

5. WHAT IS THE LOCK IN PERIOD, YOU WOULD PREFER FOR YOUR MONEY IN MONEY INSTRUMENTS? ………………………… (No. of yrs.)

6. WHICH IS THE SAFEST INVESTMENT IN YOUR VIEW? GIVE REASON?………………………………………………………………………………………….

7. WHICH IS THE RISKY INVESTMENT IN YOUR VIEW IN WHICH YOU WON’T LIKE TO INVEST? GIVE REASONS……………………......................………………………………………………………………………………………..

8. WHERE DO YOU INVEST YOUR MONEY:-(a) Shares (b) Debentures (c) Bank Deposits(d) Mutual Fund (e) Insurance (f) Govt. sec.-NSE, PPF etc.(f) Other……………………………

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9. DO YOU KNOW ABOUT MUTUAL FUND?(a) YES (b) NO

10. DO YOU INVEST IN MUTUAL FUND?(a) YES (b) NO

11. WHICH TYPE OF MUTUAL FUND DOES YOU PERFER:-(a) Open Ended (b) Close Ended (c) Growth/ Equity Fund(d) Balanced Fund (e) Tax saving Fund (f) Sector Specific Fund(g) Assured Return Scheme (h) Other……………………………….

12. IF YOU HAVE MUTUAL FUNDS, MENTION THEM:- ……………………………………… ……………………………………… ……………………………………… ………………………………………

13. WHAT INFLUENCE YOU TO INVEST IN MUTUAL FUND?(a) High Return (b) Friend/ Relative(c) Tax Benefits (d) Marketing Condition(f) Other………………………..

14. IF YOU HAVE INVESTED MONEY IN MUTUAL FUND TILL DATE WHAT IS THE AMOUNT?…………………………………………………… (Rs.)

15. HOW MUCH MONEY CAN YOU INVEST IN MUTUAL FUND?………………………………………………….... (Rs.)

16. IN YOUR VIEW, WHAT IS THE RISK FACTOR INVOLVED IN MUTUAL FUND INVESTMENT?…………………………………………………………………………………………..

17. WHICH MEDIATOR SERVICE DO YOU TAKE FOR MAKING INVESTMENT IN SHARES, MUTUAL FUNDS ETC.?

MARKETING AGENT APPROACHING YOU FINANCIAL CONSULTANTS

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FRIENDS/ RELATIVES OTHERS………………………….

18. HAVE YOU HEARD ABOUT “KARVY CONSULTANTS LTD.”?(a) YES (b) NO

19. DO YOU KNOW WHAT e-TDS IS?(a) YES (b) NO

20. DO YOU POSESS A PAN CARD?(a) YES (b) NO

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