data analysis.doc

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Detail Study Of HDFC Mutual Fund

A

PROJECT REPORT ON

Detail Study

OfHDFC Mutual Fund

Submitted For the partial fulllmentof the re!uirement for The De"ree

of M#ASubmitted by:M D N A B E E LR e g i s t r a t i o n N o . 0 7 0 6 5 ! " 0M B A # $ % ri m e s t e rS E S S # & N ' ( 0 0 7 ) ( 0 0 ! *

#N%ERNAL +,#DE-&%S/NA RA#

$$PM % S&hool Of Mana"ement

MD NABEEL


2/79


#$J' PATNA$( 'N$)ERS$T* OF

TECHNO+O,* RO'R(E+A- OR$SSA.

DELARA%#&N

I do hereby declare that the project entitled 1DE%A#L S%,D &2 /D2) M,%,AL

2,ND3submitted as a part of the requirement for the partial fulfillment of Master of Business

Administration at B#-, 4A%NA# ,N#$ERS#% &2 %E/N&L&+ &R#SSA is an

original piece of work done by me under the guidance of

Mr Manmohan Mohapatra (Branch manager)

Mr Sanket Swaroop

Mr ikash !upta"

At #$%& Mutual %und ' ourkela has not been submitted for award of any degree else where in

part or full"

Name:)Md Nabee

Regd :)07065!0"0

MD NABEEL


3/79


ER%#2#A%E&2%/E+,#DE

his is to certify that the work entitled 1DE%A#L S%,D &2 /D2) M,%,AL 2,ND3 is a

piece of Summer *roject eport done by MD NABEEL' student of MBA I rimester ##4M

S/&&L &2 MANA+EMEN%' +ansbahal ' ourkela bearing eg" ,o -.-/012-34 under my

guidance and super5ision for partial fulfillment of MBA curriculum of B#-, 4A%NA#

,N#$ERS#%&2 %E/N&L&+' ourkela' 6rissa"

o the best of my knowledge and belief the Summer *roject eport7

1" 8mbodies the work of the candidate himself"

4" #as been duly completed

9" Is up to the standard both in respect of contents and language for being referred to the

e:aminer"

2or8arded

Internal Guide;


4/79


'Signature*

MD NABEEL


5/79


ER%#2#A%E&2%/E+,#DE

his is to certify that the work entitled 1DE%A#L S%,D &2 /D2) M,%,AL 2,ND3 is a

piece of Summer *roject eport done by MD NABEEL' student of MBA I rimester ##4M

S/&&L &2 MANA+EMEN%' +ansbahal ' ourkela bearing eg" ,o -.-/012-34 under my

guidance and super5ision for partial fulfillment of MBA curriculum of B#-, 4A%NA#,N#$ERS#%&2 %E/N&L&+' ourkela' 6rissa"

o the best of my knowledge and belief the Summer *roject eport7

1" 8mbodies the work of the candidate himself"

4" #as been duly completed

9" Is up to the standard both in respect of contents and language for being referred to the

e:aminer"

2or8arded

External Guide

M SA,+8 S=A66*#$%& M>>A? %>,$

ourkela

'Signature*

MD NABEEL


6/79


AN&9LED+EMAN%

It is a great pri5ilege on my part to submit this project as an intact piece of work" I

am greatful to ;


7/79


&N%EN%S

/A4%ER %&4#4A+E N&

&B-E%#$E &2 %/E S%,D 6

( #N%R&D,%#&N1. MUTUAL FUND SETUP2. NAV3. SCOPE. !ENEFITS OF MUTUAL FUND". CAPITAL GAIN#. INVESTMENT C$ITE$IA

; AB&,% /D2 M,%,AL 2,ND1. %&' &DFC MUTUAL FUND2. SPONSO$S3. T$USTEE. AMC DI$ECTO$S". A%A$DS

" 4R&D,%


8/79


O#JECT$)EOF

THE ST'D*

MD NABEEL


9/79


&B-E%#$E &2 %/E S%,D

Indian financial system has been e:piring the 5ast effect of globaliation i"e" drastic

interest rate cut' political disturbances' security scam etc ha5e scattered the common in5estors

perception in selecting 5arious in5estment portfolio" Most of the security holders ha5e lost their

confidence in newly come@up corporate sectors for in5estment" ?ooking to the situation' it is

quite encouraging to analye how the #$%& Mutual %und able to trap the deposits by

introducing 5arious schemes and how it protects the interest of the in5estors"

he main study is based on the performance and analysis of 5arious schemes with

reference to #$%& Mutual %und that is a leading mutual fund industry in India"

he total performance analysis of financial instruments with reference to the #$%&

Mutual %und has got objecti5es" his are as follows7@

o know the performance of the different schemes"

he comparati5e study of #$%& Mutual %und with other mutual funds"

o know the in5estment pattern of the in5estors in different schemes"

he benefits made from the in5estment on the different schemes"

o know the ranking of the #$%& Mutual %und Schemes"

o know the di5ersify portfolio of #$%& Mutual %und"

o know the ser5ice which #$%& Mutual %und is pro5iding to its in5estors

with compare to other mutual funds"

MD NABEEL


10/79


$NTROD'CT$ON

1.MUTUAL FUND SETUP2.NAV3.SCOPE.!ENEFITS OF MUTUAL FUND".CAPITAL GAIN#. INVESTMENT C$ITE$IA

MD NABEEL


11/79


#N%R&D,%#&N

he financial market plays a crucial role in the in the economic de5elopment

of a country by facilitating the allocation of scarce resources" %inancial

markets essentially in5ol5e the allocation of resources" his can be thought of

as the brain of the entire economic system' the locus of central decision@

makingC if they fail ' not only will the sectors profit be lower than would

otherwise ha5e been' but the performance of the entire economic system may

be impaired"

he efficiency of financial market how e5er' depends on the e:istence ofacti5e and efficient financial intermediaries in the system" $eposit taking

institutional in5estor is the important financial intermediaries in5ol5ed in the

task of allocating assets" Structural changes in the financial market ha5e

induced a re5erse trend in f inanc ia l in te rmediation' i"e" financia l

disintermediation' in which the central role of banking is being taken o5er by

in5estment institutions and institutional in5estors" he shift from a credit@

based sys tem to a financial has in it ia ted the process of disin termedia tion' and

capital market based factors like insurance' pension funds and mutual funds

are increasingly playing the central role"

he reforms ha5e successfully dismantled the entry barriers' with the result

that today there are domestic and foreign financial institutions' like mutual

funds' broking firms and insurance companies' operating in the Indian market"

he introduction of capital adequacy norms' prudential regulation and world

class regulatory mechanisms to protect the interest of in5estor' besides the

strict requirement of disclosure' ha5e gi5en a boost to the confidence of

domestic and foreign in5estors" he Indian economy has slowly integrateditself with the global economy and financial market"

MD NABEEL


12/79


9>at is a Mutua 2und?

Mutual fund is a mechanism for pooling the resources by issuing units to the in5estors

and in5esting funds in securities in accordance with objecti5es as disclosed in offerdocument"

In5estments in securities are spread across a wide cross@section of industries and sectorsand thus the risk is reduced" $i5ersification reduces the risk because all stocks may notmo5e in the same direction in the same proportion at the same time" Mutual fund issuesunits to the in5estors in accordance with quantum of money in5ested by them" In5estorsof mutual funds are known as unit holders" he profits or losses are shared by thein5estors in proportion to their in5estments" he mutual funds normally come out with anumber of schemes with different in5estment objecti5es which are launched from time totime"

A mutual fund is required to be registered with Securities and 8:change Board of India(S8BI) which regulates securities markets before it can collect funds from the public"

MD NABEEL


13/79


(. ) /o8 is a mutua @und set u?A mutual fund is set up in the form of a trust' which has sponsor' trustees' assetManagement &ompany (AM&) and custodian" he trust is established by a sponsor ormore than one sponsor who is like promoter of a company" he trustees of the mutualfund hold its property for the benefit of the unit holders" Asset Management &ompany(AM&) appro5ed by S8BI manages the funds by making in5estments in 5arious types ofsecurities"

&ustodian' who is registered with S8BI' holds the securities of 5arious schemes of thefund in its custody" he trustees are 5ested with the general power of superintendence anddirection o5er AM&" hey monitor the performance and compliance of S8BI egulationsby the mutual fund"

S8BI egulations require that at least two thirds of the directors of trustee company orboard of trustees must be independent i"e" they should not be associated with thesponsors" Also' 0-D of the directors of AM& must be independent" All mutual funds arerequired to be registered with S8BI before they launch any scheme" #owe5er' >nit rustof India (>I) is not registered with S8BI (as on ;anuary 10' 4--4)"

(.( ) 9>at is Net Asset $aue 'NA$* o@ a s>eme?he performance of a particular scheme of a mutual fund is denoted by ,et Asset alue(,A)"

Mutual funds in5est the money collected from the in5estors in securities markets" Insimple words' ,et Asset alue is the market 5alue of the securities held by the scheme"Since market 5alue of securities changes e5ery day' ,A of a scheme also 5aries on dayto day basis" he ,A per unit is the market 5alue of securities of a scheme di5ided bythe total number of units of the scheme on any particular date" %or e:ample' if the market

5alue of securities of a mutual fund scheme is s 4-- lakhs and the mutual fund hasissued 1- lakhs units of s" 1- each to the in5estors' then the ,A per unit of the fund iss"4-" ,A is required to be disclosed by the mutual funds on a regular basis @ daily orweekly @ depending on the type of scheme"

MD NABEEL


14/79


(.; ) Soe @or DeCeoment o@ Mutua 2undA Mutual %und is the most suitable in5estment for the common man as it offers anopportunity to in5est in a di5ersified' professionally managed basket of securities at arelati5ely low cost" India has a burgeoning population of middle class now estimatedaround 9-- million" A typical Indian middle class family can ha5e liquid sa5ings rangingfrom s"4 to s"1- ?acs today" In5estments in Banks are liquid and safe' but with thefalling rate of interest offered by Banks on $eposits' it is no longer attracti5e" At best apart can be sa5ed in bank deposits' but what is the other sources of in5estment for thecommon manE Mutual %und is the ready answer" iewed in this sense globally India isone of the best markets for Mutual %und Business' so also for Insurance business" his isthe reason that foreign companies compete with one another in setting up insurance andmutual fund business units in India" he sheer magnitude of the population of educated

white collar employees pro5ides unlimited scope for de5elopment of Mutual %undBusiness in India"

(.". ) Bene@its o@ Mutua 2unds

here are numerous benefits of in5esting in mutual funds and one of the key reasons forits phenomenal success in the de5eloped markets like >S and >+ is the range of benefitsthey offer' which are unmatched by most other in5estment a5enues" =e ha5e e:plainedthe key benefits in this section" he benefits ha5e been broadly split into uni5ersalbenefits' applicable to all schemes' and benefits applicable specifically to open@endedschemes"

MD NABEEL


15/79


. 4ro@essiona Management

he in5estor a5ails of the ser5ices of e:perienced and skilled professionals who are

backed by a dedicated in5estment research team which analyses the performanceand prospects of companies and selects suitable in5estments to achie5e theobjecti5es of the scheme"

(. DiCersi@iation

Mutual %unds in5est in a number of companies across a broad cross@section ofindustries and sectors" his di5ersification reduces the risk because seldom do allstocks decline at the same time and in the same proportion"


16/79


7. %ransareny


17/79


14"%a Bene@its

he incomes under Mutual %unds are much more a: efficient than any fi:ed

income security due to the following benefits7@

Section H-? of the income a: Act '12/1 enables ta: free income up to rs

10--- and di5idends from M% s are eligible for this benefit"

=hen you in5est for o5er a year' the ta: payable on encashment is ?ong

term &apitals gains ta: at 4-D" 6nce also get an inde:ation benefit whichhas been appro:imately HD per year" his reduces the ta:able income andthus decreases the ta: liability"

here is also an opportunity to set off capital losses against gains from

income schemes"

%ull e:emption from capital gains ta: as it comes under Section 038AG8B ofthe income ta: Act"

6ne has to pay ta: only when he encash units' but ha5e to pay ta: on the

interest earned on other debt instruments e5ery year on an accrual basis'e5en though he recei5es the interest later" his generates higher post ta:returns compared to other debt instruments"

a: is just like a monster that frightens a number of indi5iduals through out thenation" here are just tow way to fight with this monater7

. &oncealG$epress Income

. Make ta: efficient in5estments"

MD NABEEL


18/79


*erhaps the second option is far better than the first as it gi5es the peace ofmind together with a feeling that one is a responsible citien of the nation" =ithincreasing amount of awareness that is taking birth in the minds of in5estors'

mutual fund has become cynosure of the eye of the se5eral in5estors"

he ta:es a5ailable are tow kinds7

. o the mutual fund@ as e:plained below in ,o 1

. o the In5estor@ as e:plained below in ,o 4

. Mutua 2und %aation

. Mutual fund is fully e:empted from the ta: under Section1- (49$) of theIncome a: Act12/1"

.It recei5es all income without deduction at source"

.Mutual funds do not ha5e to pay ta: on trading profit' short term capital gain'di5idend income' underwriting commission' placement fees' long term capitalgains' other income' etc"

(. Bene@its to t>e #nCestors

here are number of benefits that the in5estor of a mutual fund a5ail"hese are discussed as follows7

.esident >nit #olders@ In case of an indi5idual or #indu >ndi5ided %amilies(#>%s)' income by way of di5idends' if any from unit of schemes of the fundtogether with other income on specified in5estmentGdeposit are e:cept from ta:within the o5erall limit of s"10---G@ specified under SectionH-? of the I""Act'12/1" Since di5idends from shares no longer in5ite di5idend ta: and hencethe whole limit is a5ailable for mutual fund di5idends"

.a: deduction at source@ as per Section12/A of the Income a: Act' 12/1' nodeduction of ta: at source is made from any income payable to the unit holders"his implies that there is no ta: deduction at source for redemption up to anylimit"

As per Section123k of the I""Act 12/1' deduction of ta: at source is not madeif the di5idend income from a mutual fund does not e:ceed s1---- perannum"

MD NABEEL


19/79


(.6 ) #nCestment riteria

Lo8er ost

It is a lower cost of in5estment as compare to other mode of in5estmentoption in the market" #ere the in5estor can in5est a minimum of s0-- in thescheme of 8?SS (8quity ?ink Sa5ing Scheme)"

Less aer 8orF

#ere less paper work is require than other" he in5estor gi5e his detailinformation like hisGher name'age'address'phone no"' pan card no' nominee

name and address(in case of minor) and three full signature of the candided"

No as> %ransations

In5estor need not require paying cash' instead of cash in5estor has to paycheque or demand draft" =hich help to pre5ent misappropriation and alsosa5e the ta:" #ere the in5estor just writes the product name of mutual fundand sign on it" It also sa5es the time"

No Age Bar

here is no age bar of in5estor here any age group can in5est in mutual fund"In case of minor(below 1H year) there is a nominee' so a child can in5estthrough his guardian and a person ha5ing age of .- also in5est in mutualfund 'which is not possible in other in5estments"

SerCie or any Find o@ inome grou

A ser5ice holder or any kind of income group or a student or unemployedpeople can in5est in mutual fund but the person is a rational human being

ha5ing sound knowledge of in5estment company"

MD NABEEL


20/79


A#O'THDFC /M'T'A+ F'ND

1.%&' &DFC MUTUAL FUND2.SPONSO$S3.T$USTEE.A%A$DS

MD NABEEL


21/79


;. ) 9>y /D2 Mutua 2und?

#$%& Mutual %und is one of the largest mutual funds and well@established fund house in the

country with consistent and abo5e a5erage fund performance across categories since its

incorporation on $ecember 1-' 1222" =hile our past e:perience does make us a 5eteran' but

when it comes to in5estments' we ha5e ne5er belie5ed that the e:perience is enough"

&ur #nCestment 4>ioso>yhe single most important factor that dri5es #$%& Mutual %und is its belief to gi5e the in5estor

the chance to profitably in5est in the financial market' without constantly worrying about the

market swings" o realie this belief' #$%& Mutual %und has set up the infrastructure required to

conduct all the fundamental research and back it up with effecti5e analysis" 6ur strong emphasis

on managing and controlling portfolio risk a5oids chasing the latest fadsJ and trends"

9e &@@er=e belie5e' that' by gi5ing the in5estor long@term benefits' we ha5e to constantly re5iew the

markets for new trends' to identify new growth sectors and share this knowledge with our

in5estors in the form of product offerings" =e ha5e come up with 5arious products across asset

and risk categories to enable in5estors to in5est in line with their in5estment objecti5es and risk

taking capacity" Besides' we also offer *ortfolio Management Ser5ices"

&ur A>ieCements#$%& Asset Management &ompany (AM&) is the first AM& in India to ha5e been assigned the

K&ISI? %und #ouse ?e5el L 1 rating" his is its highest %und !o5ernance and *rocess uality

ating which reflects the highest go5ernance le5els and fund management practices at #$%&

AM& It is the only fund house to ha5e been assigned this rating for two years in succession"

65er the past' we ha5e won a number of awards and accolades for our performance

MD NABEEL


22/79


;.( ) S4&NS&RS

/ousing DeCeoment 2inane ororation Limited '/D2*. #$%& was

incorporated in 12.. as the first specialied Mortgage &ompany in India" #$%& pro5ides

financial assistance to indi5iduals' corporate and de5elopers for the purchase or construction of

residential housing" It also pro5ides property related ser5ices (e"g" property identification' sales

ser5ices and 5aluation)' training and consultancy" 6f these acti5ities' housing finance remains the

dominant acti5ity" #$%& has a client base of around 14 lac borrowers' around H lac depositors'

o5er 1"-H lac shareholders and 0-'--- deposit agents' as at March 91' 4--H" #$%& has raised

funds from international agencies such as the =orld Bank' I%& (=ashington)' >SAI$' $8!'

A$B and +f=' international syndicated loans' domestic term loans from banks and insurance

companies' bonds and deposits" #$%& has recei5ed the highest rating for its bonds and deposits

program for the thirteenth year in succession" #$%& Standard ?ife Insurance &ompany ?imited'

promoted by #$%& was the first life insurance company in the pri5ate sector to be granted a

&ertificate of egistration (on 6ctober 49' 4---) by the Insurance egulatory and $e5elopment

Authority to transact life insurance business in India"

Standard Li@e #nCestments Limited. he Standard ?ife Assurance &ompany was

established in 1H40 and has considerable e:perience in global financial markets" he company

was present in the Indian life insurance market from 1H3. to 129H when agencies were set up in

+olkata and Mumbai" he company re@entered the Indian market in 1220' when an agreement

was signed with #$%& to launch an insurance joint 5enture" 6n April 4--/' the Board of he

Standard ?ife Assurance &ompany recommended that it should demutualise and Standard ?ife

plc float on the ?ondon Stock 8:change" At a Special !eneral Meeting held in May 5otingmembers o5erwhelmingly 5oted in fa5our of this" he &ourt of Session in Scotland appro5ed

this in ;une and Standard ?ife plc floated on the ?ondon Stock 8:change on 1-th ;uly 4--/"

Standard ?ife In5estments is a leading asset management company' with appro:imately >SN 4/.

billion as at March 91' 4--H' of assets under management" he company operates in the >+'

&anada' #ong +ong' &hina' +orea' Ireland' *aris' Sydney and the >SA to ensure it is able to

MD NABEEL


23/79


form a truly global in5estment 5iew" In order to meet the different needs and risk profiles of its

clients' Standard ?ife In5estments ?imited manages a di5erse portfolio co5ering all of the major

markets world@wide' which includes a range of pri5ate and public equities' go5ernment and

company bonds' property in5estments and 5arious deri5ati5e instruments

;.; ) %R,S%EE#$%& rustee &ompany ?imited' a company incorporated under the &ompanies Act' 120/ is the

rustee to #$%& Mutual %und 5ide the rust deed dated ;une H' 4---' as amended from time to

time" #$%& rustee &ompany ?td is wholly owned subsidiary of #$%&

%>e Board o@ Diretors o@ /D2 %rustee omany Limited onsists o@ t>e

@oo8ing eminent ersons"

Mr" Anil +umar #irjee

Mr" ;ames Aird

Mr" Shishir +" $iwanji

Mr" anjan Sanghi

Mr" " Srini5asa angan

MD NABEEL


24/79


;." ) A8ards < Aoades

NB ) %$ ) R#S#L Mutua 2und o@ t>e ear A8ards (00: '; a8ards*. /D2 4rudene 2undwas the only scheme that won the &,B& @ 1H @ &ISI? Mutual %und

of the Management 2und ) SaCings 4anwas the only scheme that won the &,B& @

1H @ &ISI? Mutual %und of the eme Retai ategoryforthe calendar year 4--. (from amongst 12 schemes)"

#RA Mutua 2und A8ards (00: '; a8ards*

. /D2 M2 Mont>y #nome 4an@Long %erm 4an@ anked a SeCen Star 2undand has beenawarded the +od A8ard @or HBest 4er@ormaneH in the category of H&en Ended MarginaEuityHfor the three year period ending $ecember 91' 4--. (from amongst 4. schemes)

(. /D2 /ig> #nterest 2und ) S>ort %erm 4an@ anked a 2iCe Star 2undindicatingperformance among the top 1-D in the category of H&en Ended Debt ) S>ort %ermHfor oneyear period ending $ecember 91' 4--. (from amongst 4- schemes)"

;. /D2 4rudene 2und@ anked a 2iCe Star 2undindicating performance among the top 1-Din the category of H&en Ended BaanedHfor the three year period ending $ecember 91' 4--.(from amongst 1/ schemes)"

Lier 2und A8ards (00:

. /D2 Euity 2und ) +ro8t>has been awarded the FBest 2und oCer %en earsIin the IEuity#ndia ategoryIat the Lier 2und A8ards (00(form amongst 49 schemes)" It was awardedthe Best %und o5er ten years in 4--/ and 4--. as well" 4--H makes it three in a row

MD NABEEL


25/79


26/79


". ) %4ES &2 M,%,AL 2,ND S/EME

'a*&en)ended 2undJ S>eme

An open@ended fund or scheme is one that is a5ailable for subscription and repurchase ona continuous basis" hese schemes do not ha5e a fi:ed maturity period" In5estors cancon5eniently buy and sell units at ,et Asset alue (,A) related prices which aredeclared on a daily basis" he key feature of open@end schemes is liquidity"

'b*ose)ended 2undJ S>eme

A close@ended fund or scheme has a stipulated maturity period e"g" 0@. years" he fund isopen for subscription only during a specified period at the time of launch of the scheme"In5estors can in5est in the scheme at the time of the initial public issue and thereafterthey can buy or sell the units of the scheme on the stock e:changes where the units arelisted" In order to pro5ide an e:it route to the in5estors' some close@ended funds gi5e anoption of selling back the units to the mutual fund through periodic repurchase at ,Arelated prices" S8BI egulations stipulate that at least one of the two e:it routes ispro5ided to the in5estor i"e" either repurchase facility or through listing on stocke:changes" hese mutual funds schemes disclose ,A generally on weekly basis"

'*Setor sei@i @undsJs>emes

hese are the fundsGschemes which in5est in the securities of only those sectors orindustries as specified in the offer documents" e"g" *harmaceuticals' Software' %astMo5ing &onsumer !oods (%M&!)' *etroleum stocks' etc" he returns in these funds aredependent on the performance of the respecti5e sectorsGindustries" =hile these funds maygi5e higher returns' they are more risky compared to di5ersified funds" In5estors need tokeep a watch on the performance of those sectorsGindustries and must e:it at anappropriate time" hey may also seek ad5ice of an e:pert"

'd*%a SaCing S>emes

hese schemes offer ta: rebates to the in5estors under specific pro5isions of the Incomea: Act' 12/1 as the !o5ernment offers ta: incenti5es for in5estment in specifieda5enues" e"g" 8quity ?inked Sa5ings Schemes (8?SS)" *ension schemes launched by themutual funds also offer ta: benefits" hese schemes are growth oriented and in5est pre@dominantly in equities" heir growth opportunities and risks associated are like anyequity@oriented scheme"

MD NABEEL


27/79


".( ) #N$ES%MEN% 4LAN

".(. ) SS%EMA%# #N$ES%MEN% 4LAN 'S#4*

#$%& M% SI* is similar to a ecurring $eposit" 85ery month on a specified date an amount you

choose is in5ested in a mutual fund scheme of your choice" he dates currently a5ailable for SI*s

are the st 5t> 0t> 5t> (0t> and t>e (5t> of a month"


28/79


OMonthly instalments' compounded monthly' for a 10@year period"

Disaimer:he illustration abo5e is merely indicati5e in nature and should not be construed asin5estment ad5ice" It does not in any manner imply or suggest performance of any #$%& Mutual

%und Scheme(s)" *lease read isk %actors"

Bene@it ;%aFe AdCantage o@ Ruee ost ACeraging

Most in5estors want to buy stocks when the prices are low and sell them when prices are high"But timing the market is timeconsuming and risky" A more successful in5estment strategy is to

adopt the method called upee &ost A5eraging" o illustrate this well compare in5esting the

identical amounts through a SI* and in one lump sum"

Imagine Suresh in5ests s" 1--- e5ery month in an equity mutual fund scheme starting in

;anuary" #is friend' ajesh' in5ests s" 14--- in one lump sum in the same scheme" he

following table illustrate how their respecti5e in5estments would ha5e performed from ;an to

$ec7

Sures>Ks #nCestment Raes>Ks #nCestment

Mont> ,A Amount >nits Amount >nits

-an)0" 2"930 1--- 1-."--21 14--- 14H3"1-212eb)0" 2"922 1--- 1-/"9239Mar)0" H"149 1--- 149"1-.4Ar)0" H".0- 1--- 113"4H0.

May)0" H"-14 1--- 143"H14H-un)0" H"240 1--- 114"-33H-u)0" 2"1-4 1--- 1-2"H//-Aug)0" H"91- 1--- 14-"99/2Se)0" ."0/H 1--- 194"1909&t)0" /"3/4 1--- 103".0-2NoC)0" /"291 1--- 133"4.29De)0" ."/-- 1--- 191"0.H2

MD NABEEL


29/79


O,A as on the 1-th e5ery month" hese are assumed ,As in a 5olatile market

Disaimer:he illustration abo5e is merely indicati5e in nature and should not be construedas in5estment ad5ice" It does not in any manner imply or suggest performance of any #$%&

Mutual %und Scheme(s)" upee &ost A5eraging neither ensures you profits nor protects you from

making a loss in declining markets" *lease read isk %actors"

As seen in the table' by in5esting through SI*' you end up buying more units when the price is

low and fewer units when the price is high" #owe5er' o5er a period of time these market

fluctuations are generally a5eraged" And the a5erage cost of your in5estment is often reduced"

At the end of the 14 months' Suresh has more units than ajesh' e5en though they in5ested the

same amount" hats because the a5erage cost of Sureshs units is much lower than that of

ajesh" ajesh made only one in5estment and that too when the per@unit price was high"

Sureshs a5erage unit price P 14---G13H-"/-14 P s" H"1-0

ajeshs a5erage unit price P s" 2"930

MD NABEEL


30/79


Bene@it "+ro8 our #nCestment 9it> omounded Bene@its

It is far better to in5est a small amount of money regularly' rather than sa5e up to make one large

in5estment" his is because while you are sa5ing the lump sum' your sa5ings may not earn much

interest"

=ith #$%& M% SI*' each amount you in5est grows through compounding benefits as well" hat

is' the interest earned on your in5estment also earns interest" he following e:ample illustrates

this"

Imagine ,eha is 4- years old when she starts working" 85ery month she sa5es and in5ests s"

0'--- till she is 40 years old" he total in5estment made by her o5er 0 years is s" 9 lakhs"Arjun

also starts working when he is 4- years old" But he doesnt in5est monthly" #e gets a large bonus

of s" 9 lakhs at 40 and decides to in5est the entire amount"

MD NABEEL


31/79


Both of them decide not to withdraw these in5estments till they turn 0-" At 0-' ,ehas

In5estments ha5e grown to s" 3/'/H'4.9O whereas Arjuns in5estments ha5e grown to s"

9/'1.'-H3O" ,ehas small contributions to a SI* and her decision to start in5esting earlier than

Arjun ha5e made her wealthier by o5er s" 1- lakhs"

O%igures based on 1-D p"a" interest compounded monthly"

Disaimer:hehe illustration abo5e is merely indicati5e in nature and should not be construed

as in5estment ad5ice" It does not in any manner imply or suggest performance of any #$%&

Mutual %und Scheme(s)" *lease read isk %actors"

Bene@it 5Do A %>is E@@ortessy

In5esting with #$%& M% SI* is easy" Simply gi5e us post@dated cheques or opt for an

Auto $ebit from you bank account for an amount of your choice (minimum of s" 1--- and in

multiples of s" 1-- thereofO) and well in5est the money e5ery month in a fund of your choice"

he plans are completely fle:ible"


32/79


33/79


".; ) 4R&D,%S &2 M,%,AL 2,ND

E=,#%J +R&9%/ 2,ND

/#LDRENKS +#2% 2,ND

L#=,#D 2,ND

DEB%J #N&ME 2,ND

MD NABEEL


34/79


35/79


#$%& !rowth fund' an open@ended growth scheme' applies an in5estment approach

based on a set of well established but fle:ible principles that emphasie the concept of

sustainable economic earnings cash return on in5estment" he objecti5e is to identifybusiness with superior growth prospects nd good management at a reasonable priceJ"

he fi5e basic principles that ser5e the foundation for this approach are as follows7

%ocus on the long term

In5estment confers proportionate ownership of the business

Maintain a margin safety

Maintain a balanced outlook on the market

$iscipline approach to selling"

he in5estment philosophy rests on a two@pronged approach" /-@H-D of the portfolio will

aim to stay in5ested for most of the time in large cap stocks that satisfy the abo5e

in5estment criteria" his allocation to large cap stocks also ensures greater liquidity in the

portfolio" 4-@3-D of the portfolio will be in5ested in companies of scale that are either

large market share holder

Basi S>eme #n@ormation

,ature of Scheme 6pen 8nded !rowth SchemeInception $ate September 11' 4---

6ptionG*lan $i5idend *lan' !rowth *lan" he $i5idend *lan offers$i5idend *ayout and ein5estment %acility"

MD NABEEL


36/79


4an name NA$ Date NA$ CaueDiCidentd an 1H Aug 4--H 42"-4.-+ro8t> an 1H Aug 4--H 0H"29.-

%>e asset aoation under t>e S>eme 8i be as @oo8s7

Sr.no %ye o@ #nstruments NormaAoation

' o@ Net Asset*

NormaAoation

' o@ Net Asset*

RisF 4ro@ie

8quity Q 8quity relatedinstruments

H-@1-- -- Medium to high

($ebt Securities' Money

Market instruments Q &ash(including money at call)

--@4--- ?ow to medium

Returns

/D2 +ro8t>2und

'NA$ as at eCauation date Rs.4er unit*

5;."7(

Date 4eriod NA$ Returns'* OOP

Ben>marFReturns'*Q

Mar> ;0 (007 ?ast 30H days 30"3/1 19"H1OO 4"9.OODeember ((007

?ast Si: months (1H0days)

.2"//.- @94"HHO @99"9HO

-une (! (007 ?ast 1


37/79


Returns 'Annuaised* 91"H3D 4/"/3D 19"1-D @91"33DBen>marF Returns 44"..D 4-"/3D /"..D @9/"10D

# SENSEX

Benchmark @ BS8 Sense:

$isclaimer7 he abo5e in5estment simulation is for illustrati5e purposes only and should not be

construed as a promise on minimum returns and safeguard of capital" he AM& G Mutual %und is

not guaranteeing or promising or forecasting any returns" SI* does not assure a profit or

guarantee protection against a loss in a declining market" *lease refer SI* 8nrolment %orm or

contact nearest IS& for SI* ?oad Structure

MD NABEEL


38/79


/D2 %&4)(00 2,ND

#nCestment &betiCe

he in5estment objecti5e is to generate long term capital appreciation from a portfolio of equity

and equity linked instruments" he in5estment portfolio for equity and equity linked instruments

will be primarily drawn from the companies in the BS8 4-- Inde:" %urther' the Scheme may also

in5est in listed companies that would qualify to be in the top 4-- by market capitaliation on the

BS8 e5en though they may not be listed on the BS8 his includes participation in large I*6swhere in the market capitaliation of the company based on issue price would make the company

a part of the top 4-- companies listed on the BS8 based on market capitaliation

Basi S>eme #n@ormationNature o@ S>eme &en Ended +ro8t> S>eme#netion Date 6ctober 11' 122/&tionJ4an $i5idend *lan'!rowth *lan" he $i5idend *lan offers

$i5idend *ayout and ein5estment %acility"

4an Name NA$ Date NA$ AmountDiCidend 4an 1H Aug 4--H 9H"42+ro8t> 4an 1H Aug 4--H 142"0/

#nCestment 4attern

he Scheme may also in5est upto 40D of net assets of the Scheme in deri5ati5es such as %utures

Q 6ptions and such other deri5ati5e instruments as may be introduced from time to time for the

purpose of hedging and portfolio balancing and and other uses as may be permitted under theregulations and guidelines"

he Scheme may also in5est a part of its corpus' not e:ceeding 3-D of its net assets' in o5erseas

markets in !lobal $epository eceipts (!$s)' A$s' o5erseas equity' bonds and mutual funds

and such other instruments as may be allowed under the egulations from time to time"

MD NABEEL


39/79


Returns/D2 %o (00

2und

'NA$ as at eCauation date Rs.

4er unit*

5."("

Date *eriod ,A eturns(D) NNU

Benchmarketurns(D)R

Mar> ;0 (007 ?ast 30H days 1-3"0-3 H"43OO 3"30OODeember ((007


1/."HHH- @91"40O @9."09O

-une (! (007 ?ast 1


40/79


/D2 E=,#% 2,ND

#$%& 8quity %und is an open@ended growth scheme' which aims to generate long@

term capital appreciation" he scheme maintains a focused portfolio predominantly

of large cap stocks' through there is controlled e:posure to mid caps" he schemes

howe5er always remain di5ersified across sectors" Moreo5er' the sectoral allocation

is done keeping in mind to di5ersify across sectors weakly co@related to each other

to further reduce risk" he underlying theme while managing the scheme is to in5est

in businesses that are sustainable and for good quality"


Nature o@ S>eme &en Ended +ro8t> S>eme#netion Date ;anuary -1' 1220&tionJ4an $i5idend *lan'!rowth *lan" he $i5idend *lan offers


4an Name NA$ Date NA$ Amount

DiCidend 4an 1H Aug 4--H 9/"1/9-+ro8t> 4an 1H Aug 4--H 10/".//-

#nCestment Strategy:In order to pro5ide long term capital appreciation' the Scheme will in5est predominantly ingrowth companies" &ompanies selected under this portfolio would as far as practicable consist ofmedium to large sied companies which7

are likely achie5e abo5e a5erage growth than the industryC

enjoy distinct competiti5e ad5antages' and

ha5e superior financial strengths"

he aim will be to build a portfolio' which represents a cross@section of the strong growth

companies in the pre5ailing market" In order to reduce the risk of 5olatility' the Scheme

will di5ersify across major industries and economic sectors

MD NABEEL


41/79


#nCestment 4atternhe asset allocation under the Scheme will be as follows 7

Sr.No. Asset %ye ' o@ 4ort@oio* RisF 4ro@ie 8quities and 8quity elated Instruments H- @ 1-- Medium to #igh( $ebt Q Money Market Instruments - @ 4- ?ow to Medium

In5estment in Securitised debt' if undertaken' would not e:ceed 4-D of the net assets of the

scheme"

he Scheme may also in5est upto 40D of net assets of the Scheme in deri5ati5es such as %utures

Q 6ptions and such other deri5ati5e instruments as may be introduced from time to time for the

purpose of hedging and portfolio balancing and other uses as may be permitted under the

egulations"

he Scheme may also in5est a part of its corpus' not e:ceeding 3-D of its net assets' in o5erseas

markets in !lobal $epository eceipts (!$s)' A$s' o5erseas equity' bonds and mutual funds

and such other instruments as may be allowed under the egulations from time to time" Also

refer to the Section on *olicy on off@shore In5estments by the Scheme(s)"

If the in5estment in equities and related instruments falls below .-D of the portfolio of the

Scheme at any point in time' it would be endea5oured to re5iew and rebalance the composition"

,ot with standing anything stated abo5e' subject to the regulations' the asset allocation pattern

indicated abo5e may change from time to time' keeping in 5iew market conditions' market

opportunities' applicable regulations and political and economic factors" It may be clearly

understood that the percentages stated abo5e are only indicati5e and are not absolute and that

they can 5ary substantially depending upon the perception of the AM&' the intention being at all

times to seek to protect the ,A of the scheme" Such changes will be for short term and

defensi5e considerations" *ro5ided further and subject to the abo5e' any change in the asset

allocation affecting the in5estment profile of the Scheme and amounting to a change in the

%undamental Attributes of the Scheme shall be effected in accordance with sub@regulation (10A)

of regulation 1H of S8BI regulations"

MD NABEEL


42/79


Returns

/D2 Euity

2und

'NA$ as at eCauation date Rs.

4er unit*

";.7

Date 4eriod NA$ Returns'* OOP

Ben>marFReturns'*Q

Mar> ;0 (007 ?ast 30H days 134"/-4 -"94OO 1"3.OODeember ((007


412"H0.- @93"HHO @92"9HO

-une (! (007 ?ast 1 marF Returns 1/"1HD 12"..D 1."0/D 9"40D @3-"4.D

Disaimer:

he abo5e in5estment simulation is for illustrati5e purposes only and should not be construed asa promise on minimum returns and safeguard of capital" he AM& G Mutual %und is notguaranteeing or promising or forecasting any returns" SI* does not assure a profit or guaranteeprotection against a loss in a declining market" *lease refer SI* 8nrolment %orm or contactnearest IS& for SI* ?oad Structure"

MD NABEEL


43/79


/D2 #n@rastruture 2und

#nCestment &betiCe

o seek long@term capital appreciation by in5esting predominantly in equity and equity related

securities of companies engaged in or e:pected to benefit from growth and de5elopment of

infrastructure"

Basi S>eme #n@ormationNature o@ S>eme ose Ended Euity S>eme 8it> a maturity eriod o@ ;

years @rom t>e date o@ aotment 8it> automati

onCersion into an oen)ended s>eme uon maturity o@t>e S>eme.

#netion Date Mar> 0 (00&tionJ4an DiCidend &tion +ro8t> &tion. DiCidend &tion

urrenty o@@ers 8it> ayout @aiity ony

4an Name NA$ Date NA$ Amount+ro8t> &tion 1H Aug 4--H H"9H9-DiCidend &tion 1H Aug 4--H H"9H9-

#nCestment 4attern:he asset allocation under the respecti5e *lans will be as follows7

%ye o@ #nstruments MinimumAoation ' o@Net Assets*

MaimumAoation' o@Net Assets*

RisF 4ro@ie o@ t>e#nstrument

Euity and Euity Reated#nstruments o@ in@rastrutureJ in@rastruture reatedomanies

/0D 1--D Medium to #igh

Euity and Euity Reated

#nstruments o@ omaniesot>er t>an mentioned aboCe

-D 90D Medium to #igh

Debt Seurities and MoneyMarFet #nstruments and2ied #nome DeriCatiCe

-D 90D ?ow to Medium

MD NABEEL


44/79


O In5estments in securitised debt shall not normally e:ceed 9-D of the net assets of the Scheme"

he Scheme may seek in5estment opportunity in %oreign Securities (ma:" 90D of net assets)"

he Scheme may take deri5ati5es position for hedging' portfolio balancing or to undertake any

other strategy as permitted under S8BI egulations from time to time (ma:" 4-D of the net

assets) based on the opportunities a5ailable subject to S8BI egulations"

Returns

/D2 #n@rastruture2und

'NA$ as at eCauation dateRs. 4er unit*

7."

Date *eriod ,A eturns(D) N

N U

Benchmark

eturns(D)RMar> ;0 (007 ?ast 30H days ,"A ,"A" 1"3.OODeember ( (007 ?ast Si: months (1H0

days),"A ,"A" @92"9HO

-une (! (007 ?ast 1


45/79


/D2 4rudene 2und

#nCestment &betiCe

he in5estment objecti5e of the Scheme is to pro5ide periodic returns and capital appreciationo5er a long period of time' from a judicious mi: of equity and debt in5estments' with the aim topre5entG minimise any capital erosion"


Nature o@ S>eme &en Ended Baaned S>eme

#netion Date %ebruary -1' 1223&tionJ4an $i5idend *lan'!rowth *lan" he $i5idend *lan offers


Returns/D2 4rudene2und

'NA$ as at eCauation date Rs.4er unit*

(.67

Date *eriod ,A eturns(D) NNU

Benchmarketurns(D)R

Mar> ;0 (007 ?ast 30H days 11-"194 1"H3OO /"-1OO

Deember ((007 ?ast 1H0 days 1/-"/H.- @42"HHO @44".O

-une (! (007 ?ast 1


46/79


NN Adjusted for the di5idends declared under the scheme prior to its splitting into the $i5idendand !rowth *lan

#nCestment Strategy

As outlined abo5e' the in5estments in the Scheme will comprise both debt and equities" he

%und would in5est in $ebt instruments such as !o5ernment securities' money market

instruments' securitised debts' corporate debentures and bonds' preference shares' quasi

!o5ernment bonds' and in equity shares" In the long term' the mi: between debt instruments and

equity instruments is targeted between /-73- and 3-7/- respecti5ely" he e:act mi: will be a

function of interest rates' equity 5aluations' reser5es position' risk taking capacity of the portfolio

without compromising the consistency of di5idend pay out (in the case of $i5idend *lan)' need

for capital preser5ation and the need to generate capital appreciation"

%und ManagerMr. 4ras>ant -ainMr. Anand Ladd>a@ $edicated %und Manager @ %oreign Securities

#nCestment 4attern

he following table pro5ides the asset allocation of the SchemeFs portfolio"he asset allocation under the respecti5e *lans will be as follows 7

Sr.No. %ye o@ #nstruments Norma Aoation

' o@ Net Assets*

RisF 4ro@ie

8quities Q 8quity related instruments 3- @ .0D Medium to #igh( $ebt Securities' Money Market

instruments(including cashGcall money)40 @ /-D ?ow to Medium

(In5estment in Securitised debt' if undertaken'would not e:ceed 1-D of the net assets of theScheme")

MD NABEEL


47/79


/D2 aita Buider 2und

#$%& &apital Builder %und' an open@ended growth scheme' aims to in5est in

strong companies at prices that below fair 5alue in the opinion of the fund managers" he

in5estment approach is based on the philosophy that 5alue may be unco5ered only where

the crowd has not disco5ered it yet" In the opinion of the fund managers such 5alue e:ists

in good quality well managed neglected stocks" he current neglect in these companies

by the broad market participants can be due to 5arious factors such as difficult recent

market conditions' major restructuring charges' S e:penses or other such one timeeffects that may subdue profits in the near term" his also usually results in the shares of

such companies being relati5ely illiquid"

=hile assuming such relati5e risk adjusted liquidity risk the fund managers

propose to capitalie on e:pected pick up reported earning as result of strong growth

prospects in the future" his e5entually translates in to more liquidity depending on the

success of this strategy" Such opportunities are a5ailable in large companies as well assmall companies" =hile there is no criteria for stock selection based on market

capitaliation the endea5or is to keep a balance of companies in the portfolio between big

and small companies' on one category o5erwhelming the other


Nature o@ S>eme &en Ended +ro8t> S>eme#netion Date %ebruary -1' 1223

&tionJ4an $i5idend *lan'!rowth *lan" he $i5idend *lan offers$i5idend *ayout and ein5estment %acility"

4an Name NA$Date

NA$ Amount

DiCidend 4an 1HAug4--H

44"-.0

MD NABEEL


48/79


49/79


4ast er@ormane may or may not be sustained in t>e @uture

O ?oad is not taken into consideration and the eturns are of !rowth *lan G 6ption" In5estorsare ad5ised to refer to the elati5e *erformance table furnished as abo5e for non@SI* returns

Returns

/D2 aitaBuider 2und

'NA$ as at eCauation dateRs. 4er unit*

6".6!

Date 4eriod NA$ Returns'* OO P

Ben>marFReturns'*Q

Mar> ;0 (007 ?ast 30H days /-"9 0"-HOO 1"3.OODeember ( (007 ?ast Si: months

(1H0 days)1-0"149- @9H"2/O @92"9HO

-une (! (007 ?ast 1 marF ) S < 4 N 500

$isclaimer7 he abo5e in5estment simulation is for illustrati5e purposes only and should not be

construed as a promise on minimum returns and safeguard of capital" he AM& G Mutual %und is

not guaranteeing or promising or forecasting any returns" SI* does not assure a profit orguarantee protection against a loss in a declining market" *lease refer SI* 8nrolment %orm or

contact nearest IS& for SI* ?oad Structure"

MD NABEEL


50/79


PART

OF M*

S'MMER TRA$N$N,

MD NABEEL


51/79


As art o@ my understudy training

%or the purpose of fulfillment of masters degree in business administration i had

undertaken my summer training at /D2)mutua @undat ourkela branch for a period of 30

days" In course of the training i had an opportunity to get proper working knowledge about the

internal workings of Mutual funds dept"

he single most important factor that dri5es #$%& Mutual %und is its belief to gi5e the

in5estor the chance to profitably in5est in the financial market' without constantly worrying

about the market swings"

I had chosen the /D2)mutua @undas it is one of the most highly reputed mutual fund

all o5er the I,$IA and offers under study training to students during summer" I had the job of

con5incing in5estors to choose #$%& mutual funds o5er others" %or this purpose I also

maintained a database of all the in5estors who had been approached"

Money is a 5aluable asset and it is ob5ious that people think many times before in5esting

their money into any kind of funds" hey frequently ask questions about the time period' interest

rates' current status of the share market' etc which requires good running knowledge in the field"

It was not 5ery easy to con5ince people to make in5estment in the #$%& mutual funds but with

the help of Mr" Manmohan Mohapatra' Branch Manager' of #$%@mutual fund ourkela branch"

I accomplished my task"

MD NABEEL


52/79


he largest amount of in5estment was made by Mr" M$ ABI$ 'an amount of 1'0-'--- ' in thescheme #$%&@ equity fund for a duration of years"6ther in5estors were

NAME #nCestmenttye

Amount Scheme Duration

. MD AB#D S#4 (000 #$%& !6=# %>,$ 1 ,$ 1 I< %>,$ 9 ,$ 1 I< %>,$ 9 ,$ 1 ,$ 4 ,$ 1 ,$ 1 ,$ 1 ,$ 1 ,$ 4 ,$ 1


53/79


METHODO+O,*

OF

THE ST'D*

1.$ESEA$C&

MET&ODOLOG'2. SOU$CES OF DATA

COLLECTION3.&'POT&ESIS OF T&E

STUD'. DATA COLLECTION (

ANAL'SIS

MD NABEEL


54/79


MD NABEEL


55/79


6. ) Resear> Met>odoogy:Since the study undertaken by me is related to the study of mutual fund in India' the

means adopted for collection of 5arious facts and data were in the form of personal obser5ation'

officials documents' and directly interacting with the officers concerned and also directly

interacting with the e:isting customers as well as new customer formed" It was an e:ploratory

research" =ork is mainly emphasied on the primary data" *rimary data are gathered form

prescribed questionnaire and by personal inter5iew and the secondary data are collected from

different books and magaines"

1.2 % Sour&e3 of Data &olle&tionT)ere are t*+ ,+ur-e, + data -+lle-ti+n. T)e/ are0

4. PR$MAR* DATA SO'RCE

2. SECONDAR* DATA SO'RCE

T)e ,e-+ndar/ data are t)+,e *)i-) )ae alread/ een -+lle-ted /

,+4e+ne el,e t)+r+u5) !++6, Internet Telei,i+n 7+urnal, Ma5a8ine, et-.

On t)e +t)er )and 9ri4ar/ data d+e, n+t exi,t )ere. T)e re,ear-)er )a, t+

5at)er 9ri4ar/ data are,) +r t)e ,9e-i:- ,tud/ underta6en / )i4. Pri4ar/

data )a, een -+lle-ted )ere / ;ue,ti+nnaire 4et)+d and 9er,+nal

interie* 4et)+d i, +ll+*ed. Pri4ar/ ,+ur-e, ,u-) a, Interie*,

O,erati+n and attendin5 trainin5 and deel+94ent -la,,e,. Se-+ndar/

,+ur-e, ,u-) a, !++6let, M+nt)l/ 7+urnal Ma5a8ine, O


56/79


6.; ) /4&%/ES#S &2 %/E S%,D%or doing the dissertation topic performance of mutual fund analysisI took the hypothesis of

certain groups" I di5ide the total population on the basis of their age' income' gender' occupation

and status"

Male jobholders within the age group of 43@3-"

%emale jobholders within the age group of 43@3-"

Male jobholders abo5e the age 3-"

%emale jobholders abo5e the age 3-"

Indi5idual ha5ing the income in the range of 1lkh@9lkh per annum"

Indi5idual ha5ing the income abo5e 9lkh per annum"

In 6rissa i"e" rural area it is still a new concept so it will take some more time to really penetrate

into this market apart from people who are #,Is though these people are gi5en more emphasis

by all the Mutual funds and distribution channels" =ith the introduction of SI*s the industry has

created some options clear for retail in5estors to enter this market" My sur5ey says that it the

awareness le5el that is playing acting as an obstacle in the growth of Mutual fund Industry in

6rissa as a whole" *eople in Bhubaneswar are now opening up and interested in looking forward

for certified in5estment planners to help them designing their in5estment portfolio" 6rissa as a

market was not that efficient few years back' but now with lot of multinational companies and

other reputed companies coming down' the 6rissa market is slowly picking up" %or mutual funds

it is one of the emerging markets that can be trapped form its de5eloping stage and though people

of rural areas prefer Moderate risk they can easily accept mutual funds" Mutual fund Industry is

deli5ering a splendid performance and will of course continue in coming future" But that can beonly possible as the distribution channels like +ar5y' Bajaj finance and Banks i"e" &iti Bank'

#$%& Bank' I&I&I Bank and Standard &hartered Bank along with all Asset Management

&ompany"

MD NABEEL


57/79


MD NABEEL


58/79


6." ) Data oetion < Data Anaysis

No o@ resondent ) (00

Mae ) ;5

2emae ) 65

Number o@ resondents Aording to agegrous:

to ;0 U 55

;0 to "0 U 0

"0 to 50 U "0

50 aboCe U(5

%>e surCey is onduted on a same o@ (00 eoe 8>i> inudes 0 maes

and !0 @emaes. %>e same ontains onsumers @rom a t>e age grous so

t>at an idea same an be obtained.

MD NABEEL


59/79


. #nCestment ACenues aCaiabe in t>e marFet t>at inCestor are a8are

o@?

*ostal schemes

!o5ernment securities

$irect equity in5estment

Bank %$s

Mutual funds

Insurance

#N2ERENE: Aording to t>e inCestors in RourFea ;; o@ inCestors re@er to

deosit t>ere money in banF 2DKs. 9>ere as o@ t>e inCestors 8ant to

inCest in osta s>eme " in goCernment seurity 5 inCest in diret

euity (0 o@ inCestors t>ey re@er mutua @und < insurane as t>ere

MD NABEEL


60/79


inCestment >ouse 8>i> is not Cery >ig> but at t>e same time mutua @und

onet is gro8ing

(. More attratiCe about mutua @unds?eturns

Moderate risk

a: benefits

#assle free

*ast performance

=ell regulated

,o idea

"#N2RENE:

Aording to eoe o@ RourFea t>ey attrat 8it> ast er@ormane o@t>e omany i@ omany ast reords is good t>en t>ey interested to inCest.A@ter t>at eoe attrat 8it> ta bene@it t>en return on inCestment

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;. 4erentage o@ entire inCestment inudes mutua @unds?Below 4-D

4- to 0-D

0- to H-D

H-D abo5e

#N2RENE:

By t>is 8e ome to Fno8 t>at most o@ t>e eoe use to go @or mutua

@und as 8e an see by t>e aboCe gra> t>at ; eoe @rom (00 goes @or (0

to50 inCestment in Mutua 2unds.

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". 2or #nCestments in Mutua 2und 8>i> omany inCestors re@er?

#$%& M%

AB, AM6 M%

*>$8,IA? I&I&I M%

8?IA,&8 M%

BI?A S>,?I%8

#N2ERENE:

Aording to t>e #nCestors in RourFea ;5 o@ inCestors re@er toinCest in /D2 mutua @und (7 o@ inCestors re@er Reiane mutua @und8>ere as Bira s>are ( and ### by 7.but ony ! inCestors inCest inABN AMR& mutua @und. # >aCe omared t>ese @iCe @und >ouse beauset>ey are t>e main ometitors in RourFea.

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5. /o8 do inCestors manage >is inCestment ort@oio?

Solely of my own

6n ad5ise of a friend

6n ad5ise of a distributorGagent

6n ad5ise of your banker

6n ad5ice of mutual fund house people

#N2RENE:

Aording to my surCey most no o@ eoe manage >is inCestment ort@oio by o8n " eoe out o@ (00 manage >is ort@oio by o8n and "5 < ;6eoe manage 8it> t>e >e o@ banFers and M2 >ouse

MD NABEEL


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6. SaCingsJinCestment aCenues 5 year baF?

Bank %$' Sa5ings

Insurance

Mutual funds

8quity market

!o5t" securities

eal estate

*ostal sa5ings' %$

#N2RENE:Aording to my surCey be@ore 5 year most o@ t>e eoe';* o@

RourFea ity inCested >is money in insurane setor and !0 eoe out o@ (00

inCested in banF 2D. But ony "; eoe out o@ (00 inCest in mutua @und

8>i> 8as Cery o8

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7. Among t>e >uge number o@ eoe going @or mutua @und in 8>i>

Find o@ @und t>ey normay inCest?

8quity 6riented

$ebt 6riented

Balanced 6riented

#N2ERENE:

#n t>e ity iFe RourFea in bet8een t>e age grou );0 6( inCestor

inCested in euity oriented and ony eoe inCest in debt @und. But

grou o@ eoe more t>an 50 year 55 inCestor inCest in debt @und and ony

(; eoe inCest in euity @und. #t mean younger eoe attrat 8it> euity

@und and od man attrat 8it> debt @und. but in baaned @und eCery grous

are euay inCest

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. RisF aetite o@ eoe in &rissa 4re@erred RisF and Return

#igh risk high return '//* Moderate risk moderate return 'MM* ?ow risk low return 'LL*

#N2ERENE:

Aording to t>e surCey 8e an onude t>at eoe in rura areas

mosty beieCe in Moderate risF and moderate returns. ECen mutua @unds

>aCe moderate risF and t>e return is uite ess t>an as it is in ase o@ euities.

So @or t>e eoe o@ Rura areas mutua @unds are t>e rig>t Find o@

inCestment otion.

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5'EST$ONARE

MD NABEEL


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uestionnaire

4ease @i u t>e uestionnaire aording to t>e uestions asFed. '-ust ut on a tiF marF

VWX 8>ereCer needed*

Name @ VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV

Age @ W4-@9-X Se M %

W 9-@3-

W 3-@0-

W 0-@abo5eX

&uation @ Ser5ice (!o5t")

Ser5ice (*5t")

Business

Self@employed

etired

&rganiYation @ VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV

Designation ) VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV

Annua #nome@ Below 1 lakh

1 L 9 lakh

9 L 0 lakh

Abo5e 0 lakh

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. 9>at are t>e #nCestment ACenues aCaiabe in t>e marFet t>at you are a8are o@?

*ostal schemes (i"e" MISG**%G,S&G"$G"$ etc")

!o5ernment securitiesBank %$s

$irect equity in5estment

Mutual funds

Insurance

(. Are you a8are o@ t>e @at t>at some o@ t>e er@orming Mutua @und s>emes in t>e

industry >aCe osted (0 Z annuaiYed returns in ast 0 years?

at is more attratiCe about mutua @unds?

eturns #assle free

Moderate risk *ast performance

a: benefits =ell regulated

,o idea

". #@ you >aCe inCested in Mutua @unds 8>at erentage o@ your entire inCestment

inudes mutua @unds?

Below 4-D 0- to H-D

4- to 0-D H-D abo5e

5. 9>at 8ere your SaCingsJinCestment aCenues 5 year baF?

Bank %$' Sa5ings Insurance

Mutual funds 8quity market

!o5t" securities eal estate

*ostal sa5ings' %$

MD NABEEL


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6. No8 8>at ne8 aCenues are inuded in your #nCestment ort@oio?

!o5t" securities Mutual funds

Insurance $eri5ati5es8quity market

eal estate

7. /o8 do you manage your inCestment ort@oio?

Solely of my own

6n ad5ise of a friend

6n ad5ise of a distributorGagent

6n ad5ise of your banker6n ad5ice of mutual fund house people

. /o8 do you rate t>ese 8>ie taFing an inCestment deision? 'Rate as (;"5

aording to re@erene*

eturns isk factors

?ock@in period past performance

a: benefits

!. ou beieCe in [

#igh risk' #igh returns

Moderate risk' moderate returns

?ow risk' low returns

0. /aCe you been eCer aroa>ed by a erti@ied #nCestment 2inania 4anner?


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F$ND$N,-RECOMMENDAT$ON-

0

CONC+'S$ON

MD NABEEL


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2#ND#N+S

In India Mutual fund Industry has seen $ramatic impro5ements in uality as well as quality of

products and ser5ices offering o5er the past decade' but the industry has witnessed growth in the

last 1- years considerably below potential" he Asset under Management ha5e grown from about

s" 3.- billion in march 1229 to s" 1'03- billion in April 4--3(&A! of 11"3 percent) Q now it

grown to s" 0'/4- billion till sep 4--H" his has mainly achie5ed due to collection through

mutual fund I*6s that has been increasing due to the in5estors feeling that it is cheaper in its

I*6 stage on account of its s" 1- ,A"

here has been a strong appreciation in equities in comparison to the debt market' which has

shown a downward trend last year" And in turn Mid@cap and di5ersified funds ha5e deli5ered the

highest in comparison to other funds" As the Indian economy is showing a growing trend with

!$* more than /D and e:pected to show HD and Indian household sa5ing being 43D of the

entire !$*" here is a strong growth potential of Mutual fund industry in India"

In 6rissa i"e" rural area it is still a new concept so it will take some more time to really penetrate

into this market apart from people who are #,Is though these people are gi5en more emphasis

by all the Mutual funds and distribution channels" =ith the introduction of SI*s the industry has

created some options clear for retail in5estors to enter this market" My sur5ey says that it the

awareness le5el that is playing acting as an obstacle in the growth of Mutual fund Industry in

6rissa as a whole"

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Some o@ t>e Maor 2indings

1" It is found that #$%& is a fa5orable Mutual %und"

4" he basis objecti5e behind in5estments are mainly long@term capital appreciation' current

income Q to some e:tent ta: benefits"

9" he performance of #$%& &ore Q Satellite Q #$%& op 4-- %und is 5ery good"

3" It is seen that the in5estment in growth fund is 5ery high" Because the scope of incomeand capital appreciation in the long term"

0" It is obser5ed that the dri5ing aspects of in5estments in mutual fund are safety' fund

performance' Ser5ice' ?iquidity' return Q ta: benefits"

/" he type of in5estment plan that most in5estor s prefer is to get principal safety at all

time with low returns rather than high return with no safety"

." #$%& Mutual %und does not pro5ide Kmonthly income scheme which other mutual

funds ha5e and performance is 5ery appreciable"

H" %und Managers ha5e suggested #$%& prudence '#$%& a:sa5er ' #$%& 8quity for

in5estment ' %or the top 0"

2" #$%& *rudence is performing good with comparition to the prudence fund of any other

mutual fund house"

1-" At this period of time when market condition is not so good' it is better for in5estors to

in5est through Systamatic In5estment plan" =hich reduces the market risk"

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RE&MMENDA%#&N

#$%& Mutual %und is one of the largest mutual funds and well@established fund house in the

country with consistent and abo5e a5erage fund performance across categories since its

incorporation on $ecember 1-'1222"he single most important factor that dri5es #$%& Mutual

%und is its belief to gi5e the in5estor the chance to profitably in5est in the financial market'

without constantly worrying about the market swings"

Some maor reommendation:

* %und managers should continuous In5estor awareness *rograms to make the

in5estors aware of technicalities of fund management and the return aspects"(* Agents' Ser5ice personnel must be able to gi5e correct and timely information

about ,A and the return on different schemes";* Monthly income scheme should be introduced""* Scheme should be offered as per the needs and the requirement of the industries"

5* he regulatory norms pro5ided by the regulatory authorities like S8BI arerequired to be known to all including in5estors"

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&NL,S#&Nhe global financial market has transformed from Sellers market to Buyers market with

liberaliation' !lobaliations and pri5atiation" he Indian mutual fund market has also become

global when foreign funds entered' they came up with probably best marketing strategies to beat

Indian giants like BI?A' #$%&' and I&I&I ha5e come up with aggressi5e strategies to beat the

foreign funds" ,ow the cutthroat competition goes on and on"

#$%& Mutual funds ha5e rewarded in5estors with hand some returns" he good news is that this

is poised to become a trend" he mutual funds ha5e strengthened their distribution networks'become more transparent and in5estor friendly and are rewarding in5estors" he mutual fund is

finally' pro5ing itself as a 5ehicle of safety for in5estments" But it is still the fund managers

in5estment philosophy that makes the difference between the winner and the losers"

&areful market analysis' consumer segmentation' identification of in5estor needs' ser5ice

designing are to be carried out for the successful implementation of different schemes by mutual

fund organiations" egulatory measures by S8BI should be clearly e:plained to the in5estors"

*ositioning of the schemes and their branding will help a lot for growth of the industry"

&reati5ity and inno5ation are the means of marketing in the days to come for Indian mutual fund

market"

MD NABEEL


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#$#+$O,RAPH*

MD NABEEL


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#$#+$O,RAPH*6%

MA,A7$NES

#ND#A %&DA

B,S#NESS 9&RLD

8E# S$TES

888.HDFCF'ND.COM

http7GGwww"hdfcfund"comGAbout>sG

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http7GGwww"amfiindia"comGshowhtml"aspEpagePmfconceptRA

JO'RNA+

#N%&,/ M,%,ALL

$o. no. 5 #ssue no. may (00

MD NABEEL
http://www.hdfcfund.com/http://www.hdfcfund.com/AboutUs/http://www.hdfcfund.com/Products/http://www.amfiindia.com/http://www.hdfcfund.com/http://www.hdfcfund.com/AboutUs/http://www.hdfcfund.com/Products/http://www.amfiindia.com/


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