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Table Of Content

Study of Mutual Fund In India Page No 1

Sr. No. CONTENTS PAGE NO.

1. Introduction 2

2. History Of Mutual Funds in India 5

3. Structure Of Mutual Fund 8

4. Pros & Cons of Investing in Mutual Fund 10

5. Types of Mutual Fund 16

6. Role Played By Mutual Funds In Financial Market 27

7. Mutual Fund Companies in India 29

8. Governance of Mutual Fund Industry 61

9. Investing in Mutual Fund: An Understanding Process 63

10. Mutual Fund Evaluation 79

11. Return on Investment of Mutual Fund 83

12. Performance Measurement Of Mutual Fund 86

13. Benchmarks & Performance Measure 92

14. Scope Of Study 97

15. Objective Of Study 98

16. Research Methodology 100

17. Data Analysis 101

18. Observation & Findings 108

19. Limitation Of Study 109

20. Recommendations 110

21. Conclusion 111

22. Bibliography 112

23. Annexure 113

24. Abbreviations 115


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INTRODUCTION

Different investment avenues are available to investors. Mutual funds also offer

good investment opportunities to the investors. Like all investments, they also

carry certain risks. But the Risk is comparatively low because of diversification of

portfolio. The investors should compare the risks and expected yields after

adjustment of tax on various instruments while taking investment decisions. The

investors may seek advice from experts and consultants including agents and

distributors of mutual funds schemes while making investment decisions.

MUTUAL FUNDS

Mutual funds are the financial intermediaries in the investment business. 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. 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. The small savings of all the investors

are put together to increase the buying power and hire a professional manager to

invest and monitor the money. Each Mutual Fund scheme has a defined investment

objective and strategy.



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Mutual Funds-Investment Objectives:

Preservation of Capital & Liquidity--Achieved by investing in very short-term

bonds

Income--Achieved by investing in bonds

Balanced--Achieved by investing in bonds and stocks

Growth--Achieved by investing in stocks



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CHARACTERISTIC OF MUTUAL FUNDS

Mutual Fund units are actually owned by the investors who have pooled

their funds, that is they have ownership in their hands. Usually investments professionals & other service providers manage

mutual funds for which they earn a fee from the fund.

The funds that are collected from the investors are in turn invested in a

portfolio of marketable securities & the value of the portfolio is updated

every day.

The investors share is denominated in units. The value of the units

changes with the changes in the portfolios value, every day. The value

of one unit of investment is called Net Asset Value or NAV.

The investment portfolio of mutual fund is created according to the stated

investment objective of the fund



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HISTORY OF MUTUAL FUNDS

The concept of mutual fund is not new. Originating in USA and moving on to

the UK in the 1930s, this culture started in India only in 1960s with the

formation of Unit Trust of India in 1964, 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 as follows,

First Phase 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. Itwas 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.6, 700

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 set up by public

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

Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI

Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec

87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund

(Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC

established its mutual fund in June 1989 while GIC had set up its mutual fund

in December 1990.



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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)

With the entry of private sector funds in 1993, a new era started in the Indian

mutual fund industry, giving the Indian investors a wider choice of fund

families. Also, 1993 was the year in which the first Mutual Fund Regulations

came into being, under which all mutual funds, except UTI were to be

registered and governed. The erstwhile Kothari Pioneer (now merged with

Franklin Templeton) was the first private sector mutual fund registered in July1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The industry

now functions under the SEBI (Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign

mutual funds setting up funds in India and also the industry has witnessed

several mergers and acquisitions. As at the end of January 2003, there were 33

mutual funds with total assets of Rs. 1, 21,805 crores. The Unit Trust of India

with Rs.44, 541 crores of assets under management was way ahead of other

mutual funds.

Fourth Phase since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI

was bifurcated into two separate entities. One is the Specified Undertaking of

the Unit Trust of India with assets under management of Rs.29, 835 crores as at



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the end of January 2003, representing broadly, the assets of US 64 scheme,

assured return and certain other schemes. The Specified Undertaking of Unit

Trust of India, functioning under an administrator and under the rules framed

by Government of India and does not come under the purview of the Mutual

Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and

LIC. It is registered with 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 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.



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STRUCTURE OF MUTUAL FUND

Sponsor

Company

Establishes MF as a trust

Register MF with SEBI

Floats MF FundsManages fund as per SEBIguide lineAMC agreement

MutualFund

Managedby a boardof trustee

AssetManageCompany

Hold Unit-holders fund in MFEnsures Compliance to SEBIEnters into agreement with AMC

Custodian Provides necessary custodianservices

Bankers Provide Banking Services

Registrars& TransferAgents

Provide Legistras Services &act as transfer agents

Approved

by boardof trustee

Appointed bytrustees

Appointed byAMC

Appointed byAMC


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A mutual fund comprises four separate entities, namely Sponsor, Mutual Fund

Trust, AMC and Custodian. The sponsor establishes the mutual fund and gets it

registered with SEBI. The mutual fund needs to be constituted in the form of a

trust and the instrument of the trust should be in the form of a deed registered

under the provision of the Indian Registration Act, 1908.

The sponsor is required to contribute at least 40% of the minimum net worth (Rs.

10 crore) of the asset management company. The board of trustees manages the

MF and the sponsor executes the trust deeds in favor of the trustees. It is the job of

the MF trustees to see that schemes floated and managed by the AMC appointed

by the trustees are in accordance with the trust deed and SEBI guidelines.

TRUSTEE

A Trustee is a Corporate Body governed by the provisions of Indian Trusts Act,

required to comply with the provisions of the Companies Act, 1956. It acts as

protector of the unit-holders' interests. It does not directly manage the portfolio of

securities but, appoints an Asset Management Company and ensures that the fund

is managed as per the defined objectives and in accordance with the trust deed and

SEBI regulations.

CUSTODIAN

A Custodian, registered with SEBI, is appointed by the board of Trustees for

safekeeping of securities or participating in any clearing system through approved

depository companies on behalf of the mutual fund and must fulfill its

responsibilities in accordance with its agreement with the mutual fund. Since

mutual funds are in the business of buying



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And selling of securities in large volumes, handling of such securities in terms of

physical delivery and safekeeping is the responsibility of a Custodian.

SPONSOR

A Sponsor is any person who, acting alone or in combination with another body

corporate, establishes a mutual fund. The Sponsor, who is akin to the promoter of a

company, gets the fund registered with SEBI, forms a Trust and appoints a Board

of Trustees, will also generally appoint an Asset Management Company as fund

managers. The Sponsor, either directly or acting through the trustees, will also

appoint a Custodian to hold the fund assets. All these appointments are made inaccordance with SEBI regulations.

REGISTRAR/TRANSFER AGENT

Transfer agents are responsible for issuing & redeeming units of the mutual fund

and provide other related services such as preparation of transfer documents and

updating investor records.

Egg: Karvy Consultants, CAMS, etc.

ADVANTAGES OF INVESTING IN MUTUAL FUNDS

Professional Management

Mutual Funds are managed by investment mangers & are prearranged by

trustees & bound by the investment management agreement. AMCs are also

required to be adequately capitalized, & are closely synchronized by SEBI. An

AMC competing for the funds under management therefore brings in

significant professional proficiency & is bound by regulatory & trustees



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obligations. AMCs are bound by regulations which ensure that which trustees

are able to check the act of AMCs & there are a number of safeguards &

prudential regulations in the interest of investors. Investment mangers & funds

are also bound by the rules issued by AMFI, which cultivate professional

standards in the industry.

Diversification

Diversified investment improves risk-return profile of the portfolio. Small

investors may not have the amount of capital that would allow optimal

diversification. By offering a readymade diversified portfolio, mutual fundsenable investors to hold a diversified portfolio. Though investors can create

their own diversified portfolios, the costs of creating & monitoring such

portfolios can be high, apart from the fact that investors may lack the

professional expertise to manage such portfolio. Since the corpus of mutual

funds is substantially big as compared to individual investments, optimal

diversification becomes possible.

Convenience & Flexibility

Mutual funds possess features such as regular plan (i.e. one can invest in

installments), regular withdrawal plans, (also called systematic withdrawal

plans or SWP) & dividend reinvestment plan (also called systematic investment

plan or SI P). Because of these features, one can systematically invest or

withdraw funds according



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to ones needs & convenience. Mutual fund units are usually not issued in the

form of certificates, with minimum denomination. They are instead issued as

account statements, with the facility to hold units in fractions up to 4 decimal

points. It is also simper for investors to make additional investments, to

repurchase a part of their investments, to re-invest dividends to convert their

holdings in one fund into a holding in another & to alter the investment options

regarding their periodical dividends. These facilities make it possible for small

investors to regularly save a fixed amount in a mutual fund, & create saving

plans that suit their saving habits & financial goals. .

Reduction in risks

Mutual funds invest in an assortment of securities. This mean that all funds are

not invested in the same investment path. It is well known that risks & returns

of various investment options do not move uniformly with one another. If a

pharmacy company share is going down, debt markets may be moving up.

Therefore, holding a portfolio that is diversified across investment avenues is a

wise way to manage risk. When such a portfolio is liquid & marked to market,

it enables investors to evaluate the portfolio continuously & manage risks more

efficiently.

Reduction of transaction costs

The transactions of mutual funds are generally very large. These large volumes

attract lower brokerage commissions & other costs when compared to the

smaller volumes of the transactions entered into by individual investors. The

brokers quote a lower rate of commission due to two reasons. The first is the

competition for the institutional investors business. The second reason is that



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the overhead costs for executing a trade do not differ much for large & small

orders. Hence for a large order these costs spread over a larger volume,

enabling the broker to quote a lower commission rate. Mutual funds provide the

investors the advantage of economies of scale, by virtue of their size. Though

the individual investors payment may be small, the mutual fund itself is large

enough to be able to reduce the costs in its transactions. These benefits are

passed on to investor.

Liquidity

Most of the funds sold today are open-ended. That is, investors can sell theirexisting units, or buy new units, at any point of time, at prices that are related to

the NAV of the fund on the date of their transaction. This enables investors to

enjoy a high-level of liquidity on their investments. Since investors

continuously enter & exit funds, funds are actually able to provide liquidity to

investors, even if the underlying markets, in which the portfolio is invested,

may not have the liquidity that investor seeks. For example, the debt markets

are wholesale markets, where minimum trade lots, are Rs.25000 onwards.

However, investors in debt market funds can invest as little as Rs.500, &

withdraw the same at NAV related prices, at any time.

Choice of Schemes

Mutual funds generally offer a number of schemes to suite the requirements of

the investors. Thus the investors can choose between regular income schemes

& growth schemes, between schemes that invest in the money market & those

that invest in stock market. Some schemes provide value added services. For

example, automatic reinvestment schemes reinvest the distributed income



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automatically, thus making the management of funds easier. In case of direct

investment in securities, the reinvestment of income in the same proportion as

the assets held is very difficult & sometimes impossible. Funds that invest in

overseas market offer the additional advantage diversification, which may

otherwise not be feasible to lay investor. Mutual funds area allowed investing

in overseas markets through those schemes that are meant for overseas

investment or a part of domestic investment schemes. The schemes that are

invested in the overseas open- ended or close- ended. The fund

Should have the approval of the unit holder to invest in overseas markets if

there is no provision in the offer document. But MFs interested in investing

overseas must file an offer document with SEBI. The MFs must disclose the

fees & expenses involved to the unit holders.

Disadvantages of investing in Mutual Fund

No control over the costs

Funds usually have different kinds of fees that reduce the overall pay out. The

fees may be two types one is the shareholders fees that is in the form of

redemption & load fees & are paid by the shareholders. The other kind of fee is

the annual fund operating fee that is charged to the investors irrespective of the

performance of the mutual fund. Since investors do not directly monitor the

funds operations they cannot control the costs effectively.

No tailor made portfolios



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Mutual fund portfolios are created & marketed by AMCs into which investors

invest. They cannot create tailor made portfolios & therefore customized

products can be made.

Managing a portfolio of funds

As the number of mutual funds increases & to tailor a portfolio for himself, an

investor may be holding a portfolio of funds, with the costs of monitoring them

& using them, being incurred by him.

No-choice

The investor cannot choose the securities they want to invest in, or the

securities they want to sell.

Performance

The investors face the risk if the fund manager not performing well.

o If the fund managers compensation is linked to the funds performance he

may to be tempted to show good results in the short term, without paying

attention to the expected long- term performance of the fund. This would

harm the long-term interests of the investors. Another disadvantage of

investing in mutual fund is the management fees charged by the fund. It

reduces the returns available to the investors.

o Lastly, while investors in securities can decide the amount of earnings they

want to withdraw in a particular period, investors in mutual fund have no

such discretion as the amount of earnings that are to be paid out to the

investors in a particular year is decided by the mutual fund.



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TYPES OF MUTUAL FUNDS

Mutual fund schemes may be classified on the basis of its structure and its

investment objective.



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A) BY STRUCTURE:

A mutual fund scheme can be classified into open-ended scheme or close-ended

scheme depending on its maturity period.

a) Open-End Funds

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. Investors can conveniently

buy and sell units at Net Asset Value (NAV) related prices, which are declared on

a daily basis.

The key feature of open-end schemes is liquidity.

In order to determine the value of a share in an open-end fund at any time, the Net

Asset Value is used.

Open-end funds also redeem, or buy back, shares from shareholders.

The reason why these funds are called "open-end" is because there is no limit to

the number of new shares that they can issue. New and existing shareholders may

add as much money to the fund as they want and the fund will simply issue new

shares to them.



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b)Closed-End Funds

A Close-Ended fund is open for subscription only during a specified period,

generally at the time of Initial Public Offer (IPO).

Investors can invest in the scheme at the time of the IPO and thereafter they can

buy or sell the units of the scheme on the stock exchanges where they are listed.

A closed-end fund has a stipulated maturity period which generally ranging from

3 to 5 years. In order to provide an exit route to the investors, some close-ended

funds give an option of selling back the units to the Mutual Fund through periodic

repurchase at NAV related prices.

SEBI Regulations stipulate that at least one of the two exit routes is provided to the

investor. Investor i.e. either repurchase facility or through listing on stock

exchanges. These mutual funds schemes disclose NAV generally on weekly basis

The price of a share in a closed-end fund is determined partially by the value of the

investments in the fund, and partially by the premium (or discount) placed on it bythe market.

B) BY INVESTMENT OBJECTIVE:

A scheme can also be classified as growth scheme, income scheme, or balanced

scheme considering its investment objective. Such schemes may be open-ended or

close-ended schemes as described earlier. Such schemes may be classified mainlyas follows:

a) Growth / Equity Oriented Scheme



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The aim of growth funds is to provide capital appreciation over the medium to

long- term.

Such schemes normally invest a major part of their corpus in equities.

Such funds have comparatively high risks. These schemes provide different

options to the investors like dividend option, capital appreciation, etc. and the

investors may choose an option depending on their preferences.

Growth schemes are good for investors having a long-term outlook seeking

appreciation over a period of time.

b) Debt Oriented Scheme

The aim of income funds is to provide regular and steady income to investors.

Such schemes generally invest in fixed income securities such as bonds, corporate

debentures, Government securities and money market instruments. Such funds are

less risky compared to equity schemes. These funds are not affected because of

fluctuations in equity markets. However, opportunities of capital appreciation arealso limited in such funds.

The NAVs of such funds are affected because of change in interest rates in the

country. If the interest rates fall, NAVs of such funds are likely to increase in the

short run and vice versa.

Income Funds are ideal for capital stability and regular income.

c) Balanced Fund



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The aim of balanced funds is to provide both growth and regular income as such

schemes invest both in equities and fixed income securities in the proportion

indicated in their offer documents.

They generally invest 40-60% in equity and debt instruments. These funds are also

affected because of fluctuations in share prices in the stock markets.

NAVs of such funds are likely to be less volatile compared to pure equity funds.

These are appropriate for investors looking for moderate growth. These are ideal

for investors looking for a combination of income and moderate growth.

d) Money Market or Liquid Fund

These funds are also income funds and their aim is to provide easy liquidity,

preservation of capital and moderate income.

These schemes invest exclusively in safer short-term instruments such as treasury

bills, certificates of deposit, commercial paper and inter-bank call money,

government securities, etc.

Returns on these schemes fluctuate much less compared to other funds. These are

ideal for Corporate and individual investors as a means to park their surplus funds

for short periods.

C) BY MARKET CAPITALISATION:



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Market capitalization: STOCK FUNDS are often grouped by the size of the

companies they invest in big, small or tiny. By size we mean a company's value on

the stock market: the number of shares it has outstanding multiplied by the share

price. This is known as market capitalization.

Big companies tend to be less riskythan small companies. But smaller companies

can often offer more growth potential. The best idea is probably to have a mix of

funds that gives an exposure to large-cap, midsize and small companies.

A fund's market capitalization will indicate whether the fund emphasizes the

stocks of blue-chip companies with large market capitalizations, emergingcompanies with small capitalizations, or something in between.

a) Large Cap Funds

Large cap funds invest their assets primarily in companies, which have a sizable

market capitalization.

Different fund houses define `Sizable' differently. This is usually mentioned in thefact sheets for the investor's benefit. For instance, Principal defined large caps as

companies with a market capitalization in excess of (Rs 750crores). Companies

below this threshold were categorized as mid/small caps.

Investing in large caps is a lower risk-lower return proposition (vis--vis mid cap

stocks). These stocks carry Embedded value means such companies have

diversified businesses. So even if one company or business unit does not perform,

it is negligible loss for the group. Eg. RIL, SBI etc.

Large-cap funds are less volatile than funds that invest in smaller companies.

Usually, that means we can expect smaller returns but stable returns.



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E.g.: Principal Large cap, Kotak 30, HDFC Top 200 Fund, Franklin India Blue-

chip Fund, HSBC Equity Fund for instance, invest predominantly in large caps.

b) Mid Cap Funds

These funds invest in companies that have a lower market capitalization than the

large caps. Definition of mid cap companies varies from fund house to fund house.

As with large caps, BSE (BSE Mid Cap 200) and S&P CNX (S&P CNX Mid Cap

200) have designed their own indices for mid cap stocks.

Investments in mid caps are a riskier proposition as compared to investments in

large cap funds. In fact, a mid cap stock could well graduate to a large cap over

the years giving the investor a significant return on his investment.

E.g.: Franklin India Prima Fund, Kotak Mid-Cap, Magnum Global Fund,

Sundaram SelectMid Cap fund are some examples of mid cap funds.

c) Small Cap Funds

Small cap funds invest in companies with a smaller market capitalization. Eg.

Sundaram SMILE. Investing in small cap funds is fraught with considerable risk.

Small cap companies in most cases are just evolving. Again, as with mid caps,

information on small caps is not easily available so these companies are under-

researched or maybe not researched at all. So we are contending with a relatively

unknown entity here.

However, the risk-return trade-off is much higher vis--vis large caps and mid

caps.



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The volatility of the fund often depends on the aggressiveness of the manager.

Aggressive small-cap managers will buy hot growth and technology companies,

taking high risks in hopes of high rewards. More conservative "value" managers

will look for companies that have been beaten down temporarily by the stock

market.

Currently this is a niche segment as there is no fund investing purely in small cap

stocks. Sundaram SMILE is probably the first small cap fund of its kind.

d) Multi/Flexi-Cap Funds

Just about every second mutual fund IPO these days is a multi/flexi cap fund.

The fund manager has the mandate to shift across market capitalizations depending

on the growth opportunity.

This is generally dictated by the market happenings i.e. which sector is driving

growth at a given time or which market segment (market capitalization) is

witnessing the latest rally.

But generally, there's a ceiling on how far the fund manager can go in a particular

market segment or sector. This helps in keeping the portfolio relatively diversified

and mitigate risks. In terms of risk-return trade-off, these funds are positioned

between large caps and mid caps. Some multi cap funds include - DSP ML

Opportunities, Tata Equity Opportunities, Principal Resurgent India Fund.

D) OTHER SCHEMES:

a) Tax Saving Schemes



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These schemes offer tax rebates to the investors under specific provisions of the

Indian Income Tax laws as the Government offers tax incentives for investment in

specified avenues.

Investments made in Equity Linked Savings Schemes (ELSS) and Pension

Schemes are allowed as deduction u/s 80c of the Income Tax Act, 1961.

The Act also provides opportunities to investors to save capital gains u/s 54EA and

54EB by investing in Mutual Funds. Typically returns for such schemes have been

found to be between 15-20%.

b) Index Funds

Index Funds replicate the portfolio of a particular index such as the BSE Sensitive

index, S&P NSE 50 index (Nifty), etc

These schemes invest in the securities in the same weightage comprising of an

index. For example, an Index fund which is trying to mirror the BSE-30 (Sensex)

will invest in only those 30 scripts that constitute this particular index.

NAVs of such schemes would rise or fall in accordance with the rise or fall in the

index, though not exactly by the same percentage due to some factors known as

"tracking error" in technical terms.

Necessary disclosures in this regard are made in the offer document of the mutual

fund scheme. Fund managing an index fund is usually called passive management

because all a fund manager has to do is to follow the index.

Volatility of such schemes is in sync with the index. A bull market could get you

as high as 40% returns over a period of one year. In a bad year (current year) it

could erode your principal by as much as 30%.



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c) Thematic Funds

Thematic Funds are those, which invest, exclusively in a specified sector. This

could be an industry or a group of industries or various segments such as 'A' Group

shares or initial public offerings. For example, Infrastructure Thematic fund shall

invest in companies like DLF, Ambuja cement etc., and not in Software Company

like Infosys.

Thematic Funds tend to have a very high risk-reward ratio and investors should be

careful of putting all their eggs in one basket.

Depending on the sector performance, returns vary on day to day basis. One year

returns can go as high as 50%.

RISK V/S. RETURN



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ROLE OF MUTUAL FUNDS IN FINANCIAL

MARKETS



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Mutual funds play a significant role in the development of the financial market &

this has been proved in the developed countries like United States, United

Kingdom & Japan. India is at its first stage of a revolution that has already peakedin United States. In United States, the asset base of mutual fund is much higher

than its bank deposits. In India, mutual funds assets are not even 10% of the bank

deposits, but this trend is only at the beginning. The mutual funds in India have

emerged as strong, financial intermediaries & are playing a very important role in

bringing stability to the financial system & efficiency to resource allocation.

Mutual funds help corporate in raising funds for their financial needs & provide an

avenue of investment t investors by parking their savings. This leads to overall

growth of the economy. The major chunk of the household savings in India, which

is earlier went back to bank deposit are now being taken by mutual funds. The

active involvement of mutual funds in promoting economic development can be

seen not only terms of their participation in the savings market but also in their

dominant presence in the money & the capital market. A developed financial

market is critical to build overall economic development & mutual funds play an

active role in promoting an active healthy market. Mutual funds increase liquidity

in the money market. The asset holding pattern of mutual fund in India indicates

the dominant role of mutual funds in the money & capital markets. The private

corporate sector in India is a deficit sector & the gap between demand & supply of

financial resources is met by funds raised through loans, advances & issuance of

securities. However, the buoyancy in the capital market has increased the relianceof the corporate sector has more than doubled. The changing pattern of corporate

financing indicates that the banking sector is loosing its prominence vis-a-vis the

other financial sector. Direct financing the corporate sector has substantially

increased after SEBI guidelines allowed the corporate sector reserves 20% of the



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public issues for Indian mutual funds. Mutual funds have also widened the private

placement market for corporate securities. Mutual funds have enabled the

corporate sector to raise capital at reduced costs & have opened an avenue for

alternate source of various financial segments like savings, capital market & the

corporate sector. As various tax incentives & benefits on mutual fund investments

are offered by the Government, their role in the mobilization of savings & the

development of the economy will assume more significance. They provide much

needed impetus to the money market & stock markets, in addition to direct &

indirect support to the corporate sector. Above all mutual funds have given a new

direction to the flow of personal savings & semi-urban areas to reap benefits ofstock market investments. Indian mutual funds are thus playing a very crucial

development role in allocating resources in the emerging market economy.

MUTUAL FUND COMPANIES IN INDIA



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UTI

Standard Chartered

Best Mutual Funds in India

Before knowing about the arguably best mutual funds in India, it is important to

know the factors that actually decide their fate in the market.

In order to get an actual ideal of the best performing mutual funds in the market,

one needs to track its current Net Asset Value or NAV. NAV stands for the latest

market value of the holdings of a fund that brings down the fund's liabilities, which

are generally indicated in terms of per share amount. On a daily basis, most of the

funds' NAV is decided. This is determined after the trade closes on certain

financial exchanges. The net asset value of the mutual funds is ascertained at the

end of the trading day. An increase in NAV signifies rise in the holdings of the

shareholder. The Fund Firm will then do the transaction on the shares along with

the sales fees. While open-ended net asset value of the mutual funds is issued

daily, the close-ended NAV of the mutual fund is released on a weekly basis.

You can calculate net asset value of the mutual fund easily. Track the latest market

value of the net assets of the fund and then subtract that by the number of

outstanding shares.

TOP MUTUAL FUNDS IN INDIA



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Here are some of the top mutual funds in India that are listed below:

Reliance Mutual Fund

HDFC Equity Fund

The DSP ML Tiger Fund

SBI Mutual Fund

Tata Company Mutual Fund

Reliance Mutual Fund

Reliance Mutual Fund (RMF) is one of Indias leading Mutual Funds, withAverage Assets Under Management (AAUM) of Rs. 1,15,753 Crores and an

investor count of over 75 Lakh folios. (AAUM and investor count as of February

2010) AAUM Source: http://www.amfiindia.com/

Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is

one of the fastest growing mutual funds in the country. RMF offers investors a

well-rounded portfolio of products to meet varying investor requirements and has

presence in 159 cities across the country. Reliance Mutual Fund constantly

endeavors to launch innovative products and customer service initiatives to

increase value to investors. "Reliance Mutual Fund schemes are managed by

Reliance Capital Asset Management Limited., a subsidiary of Reliance Capital

Limited, which holds 93.37% of the paid-up capital of RCAM, the balance paid up

capital being held by minority shareholders."

Reliance Capital Ltd. is one of Indias leading and fastest growing private sector

financial services companies, and ranks among the top 3 private sector financial

services and banking companies, in terms of net worth. Reliance Capital Ltd. has

http://www.amfiindia.com/http://www.amfiindia.com/


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interests in asset management, life and general insurance, private equity and

proprietary investments, stock broking and other financial services.

Sponsor: Reliance Capital Limited

Trustee: Reliance Capital Trustee Co. Limited

Investment Manager: Reliance Capital Asset Management Limited

Statutory Details: The Sponsor, the Trustee and the Investment Manager are

incorporated under the Companies Act 1956.

Types of Investment Opportunities offered by Reliance:

Equity/Growth Schemes

The aim of growth funds is to provide capital appreciation over the medium to

long- term. Such schemes normally invest a major part of their corpus in equities.

Such funds have comparatively high risks. These schemes provide different

options to the investors like dividend option, capital appreciation, etc. and the

investors may choose an option depending on their preferences. The investors must

indicate the option in the application form. The mutual funds also allow the

investors to change the options at a later date. Growth schemes are good for

investors having a long-term outlook seeking appreciation over a period of time.



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The primary investment objective of the Scheme is to achieve long-term growth of capital by investment in equity and equity

related securities through a research based investment approach.

Scheme Information Document Fund ManagerAddenda KIM cum Application Form

Latest NAVs

Scheme Current NAV Nav Date

Dividend Plan 56.0002 18 Mar 2010

Growth Plan Bonus Option 72.4169 18 Mar 2010

http://www.reliancemutual.com/CMT/Upload/OfferDocument/Reliance%20Growth%20Fund09.pdfhttp://www.reliancemutual.com/OurSchemes/EquityGrowthSchemes/Reliance%20Growth%20Fund.aspx#%23http://www.reliancemutual.com/Downloads/Addenda/Reliance%20Growth%20Fund.aspxhttp://www.reliancemutual.com/OurSchemes/EquityGrowthSchemes/Reliance%20Growth%20Fund.aspx#%23http://www.reliancemutual.com/CMT/Upload/OfferDocument/Reliance%20Growth%20Fund09.pdfhttp://www.reliancemutual.com/OurSchemes/EquityGrowthSchemes/Reliance%20Growth%20Fund.aspx#%23http://www.reliancemutual.com/Downloads/Addenda/Reliance%20Growth%20Fund.aspxhttp://www.reliancemutual.com/OurSchemes/EquityGrowthSchemes/Reliance%20Growth%20Fund.aspx#%23


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Growth Plan Growth Option 436.5663 18 Mar 2010

Institutional Plan - Bonus Plan 439.2867 18 Mar 2010

Institutional Plan - Dividend Plan 427.5073 18 Mar 2010

Institutional Plan - Growth Plan 439.2867 18 Mar 2010

Performance as on 26/02/2010Absolute Compounded Annualized

6 months 1 year 3 year 5 year Since Inception

Reliance Growth Fund - Retail Plan - Growth 14.23 112.69 15.18 28.28 29.50

BSE100 6.37 93.04 8.49 19.82 12.35

Past Performance may or may not be sustained in the future.

Aforesaid returns are Compounded annualized returns of Retail Plan - Growth Option. (Inception Date: 8th Oct 1995)

Calculations assume that all payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV.

Product Features

Investment Objective :

The primary investment objective of the Scheme is to achieve long-term growth of capital by investment in equity and equity

related securities through a research based investment approach.

Asset Allocation:

InstrumentIndicative asset allocation

(% of total assets)Risk Profile

Maximum Minimum

Equity and Equity related Instruments 100% 65% High

Debt Instruments & Money Market Instruments 35% 0% Medium to Low

However, it may be understood that the above is only indicative. The above pattern may be altered by the Investment Manager in

line with the Investment Objective.

Fund Manager: Mr. Sunil Singhania

Plans Available: Retail Plan & Institutional Plan

Each of the above option will have Growth Plan & Dividend Plan as specified below

Growth Plan : Growth Option & Bonus Option

Dividend Plan : Dividend Pay-out Option & Dividend Reinvestment Option

Benchmark Index: BSE 100



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Minimum Application Amount

Retail Plan : Rs 5000 and in multiples of Re. 1 thereafter

Institutional Plan : Rs. 5 Crore in multiples of Re. 1 thereafter

Minimum additional purchase amount

Retail Plan : Rs 1000 and in multiples of Re. 1 thereafter

Institutional Plan : Rs. 1 Lakh in multiples of Re. 1 thereafter

Load Structure:

Entry Load Under both Retail and Institutional Plan NIL

In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry

load will be charged by the Scheme to the investor effective August 1, 2009. Upfront

commission shall be paid directly by the investor to the AMFI registered Distributors based on

the investors' assessment of various factors including the service rendered by the distributor

Exit Load Retail Plan & Institutional Plan

If redeemed or switched out on or before completion of 1 year from the date of allotment of

units.

1%

If redeemed or switched out after the completion of 1 year from the date of allotment of units. Nil

Facilities Available:

Systematic Investment Plan Available

Systematic Transfer Plan Available

Systematic Withdrawal Plan Available

Reliance Salary AddVantage Available

Dividend Transfer Plan Available

Recurring Investment Plan for Corporate Employees Available

Trigger Facility Available

Online Transaction Available

Reliance SIP Insure Available

Reliance ATM card Available

Auto Debit & Electronic Clearing System Available

Applicable NAV :

Subscriptions/Purchases including switch - ins: In respect of valid applications received upto 3 p.m. by the Mutual Fund

alongwith a local cheque or a demand draft payable at par at the place where the application is received, the closing NAV of the

day on which application is received shall be applicable.

In respect of valid applications received after 3 p.m. by the Mutual Fund alongwith a local cheque or a demand draft payable at par

at the place where the application is received, the closing NAV of the next business day shall be applicable.

Redemptions including switch - outs: In respect of valid applications received upto 3 p.m. by the Mutual Fund, closing NAV of

the day of receipt of application, shall be applicable.



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In respect of valid applications received after 3 p.m. by the Mutual Fund, the closing NAV of the next business day shall be

applicable.

Disclaimer

Sponsor: Reliance Capital Limited. Trustee: Reliance Capital Trustee Co. Limited. Investment Manager: Reliance Capital

Asset Management Limited. Statutory Details: The Sponsor, the Trustee and the Investment Manager are incorporated under the

Companies Act 1956.

Debt/Income Schemes

The aim of income funds is to provide regular and steady income to investors.

Such schemes generally invest in fixed income securities such as bonds, corporatedebentures, Government securities and money market instruments. Such funds are

less risky compared to equity schemes. These funds are not affected because of

fluctuations in equity markets. However, opportunities of capital appreciation are

also limited in such funds. The NAVs of such funds are affected because of change

in interest rates in the country. If the interest rates fall, NAVs of such funds are

likely to increase in the short run and vice versa. However, long term investors

may not bother about these fluctuations.

A scheme that predominantly invests in State and Central Government Securities and Bonds giving a near zero credit risk option in

investment.

Scheme Information Document Addenda KIM cum Application Form

http://www.reliancemutual.com/CMT/Upload/OfferDocument/Reliance%20Gilt%20Securities%20Fund09.pdfhttp://www.reliancemutual.com/Downloads/Addenda/Reliance%20Gilt%20Securities%20Fund.aspxhttp://www.reliancemutual.com/OurSchemes/DebtLiquidSchemes/Reliance%20Gilt%20Securities%20Fund.aspx#%23http://www.reliancemutual.com/OurSchemes/DebtLiquidSchemes/Reliance%20Gilt%20Securities%20Fund.aspx#%23http://www.reliancemutual.com/CMT/Upload/OfferDocument/Reliance%20Gilt%20Securities%20Fund09.pdfhttp://www.reliancemutual.com/Downloads/Addenda/Reliance%20Gilt%20Securities%20Fund.aspxhttp://www.reliancemutual.com/OurSchemes/DebtLiquidSchemes/Reliance%20Gilt%20Securities%20Fund.aspx#%23


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Latest NAVs

Scheme Current NAV Nav Date

Institutional Dividend Plan 11.7626 18 Mar 2010

Institutional Growth Plan 11.7626 18 Mar 2010

Retail Dividend Plan 9.9812 18 Mar 2010

Retail Growth Plan 11.7536 18 Mar 2010

INSTITUTIONAL AUTOMATIC ANNUAL REINVEST OPTION 11.7626 18 Mar 2010

INSTITUTIONAL AUTOMATIC CAPITAL APPRECIATION PAYOUT OPTION 11.7626 18 Mar 2010

INSTITUTIONAL DEFINED MATURITY DATE OPTION 11.7626 18 Mar 2010

RETAIL AUTOMATIC ANNUAL REINVEST OPTION 11.7536 18 Mar 2010

RETAIL AUTOMATIC CAPITAL APPRECIATION PAYOUT OPTION 11.7536 18 Mar 2010

RETAIL DEFINED MATURITY DATE OPTION 11.7536 18 Mar 2010

Product Features

Investment Objective:

The primary investment objective of the scheme is to generate optimal credit risk free returns by investing in a portfolio of securities

issued and guaranteed by the Central Government and State Governments.

Asset Allocation:

InstrumentIndicative allocations

(% of total assets)Risk Profile

Maximum Minimum High/Medium/Low

Gilts 100 70 Low to Medium

Money Market Instruments 30 0 Low to Medium

Fund Manager: Prashant Pimple

Choice of Plans/Options:

The scheme offers Retail and Institutional Plan. Both these plans offer the following options:

Growth Plan

Dividend Plan:

o Dividend Pay-out Option

o

Dividend Reinvestment Option

PF option:

o Automatic Capital Appreciation Payout Option

o Defined Maturity Date Option



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o Automatic Annual Reinvest option

Benchmark Index: I Sec Li- Bex

Minimum Application Amount

o Retail Plan: Rs 10,000 per plan per option and in multiple of Re. 1 thereafter.

o Institutional Plan: Rs. 1 Crore per plan per option and in multiple of Re. 1 thereafter.

Minimum Additional Amount

o Retail Plan: Rs 1000 per plan per option and in multiple of Re. 1 thereafter.

o Institutional Plan: Rs. 1, 00,000 per plan per option and in multiple of Re. 1 thereafter.

Load Structure

Retail Plan & Institutional Plan:

o Entry Load - Nil

o Exit Load: - Nil

Pursuant to SEBI Circular No.SEBI/IMD/CIR No. 10/112153/07 dated December 31, 2007, with effect from January 4, 2008, no entry

load shall be charged in respect of direct applications received by Reliance Mutual Fund (RMF). Pursuant to SEBI circular

No.SEBI/IMD/CIR No. 14/120784/08 dated March 18, 2008, with effect from April 1, 2008, no entry load or exit load shall be charged

in respect of bonus units and of units allotted on reinvestment of dividend.

Performance as on 26.02.10

NAV Performance report as on 26/02/2010

Absolute Returns % CAGR % (Point to Point)

6 months 1 year 3 year 5 year Since Inception

Reliance G Sec Fund - Retail - Growth 0.96 1.86 N.A. N.A. 10.84

I-Sec Li-BEX 2.01 0.38 N.A. N.A. 15.50

Past Performance may or may not be sustained in the future.

Compounded annualized returns of Growth Option

Calculations assume that all payouts during the period have been reinvested in the units of the scheme at the then prevailing NAV.

Cut-off timings for income/debt oriented funds:



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For debt schemes: In respect of valid applications received upto 3 p.m. by the Mutual Fund along with a local cheque or a demand draft

payable at par at the place where the application is received, the closing NAV of the day on which the application is received shall be

applicable. In respect of valid applications received after 3 p.m. by the Mutual Fund along with a local cheque or a demand draft payable

at par at the place where the application is received, the closing NAV of the next business day shall be applicable.

(Business Day shall have the same meaning as working day, wherever used)

In respect of purchase of units in Income/ Debt oriented schemes (other than liquid fund schemes and plans) with amount equal to or

more than Rs. 1 crore, irrespective of the time of receipt of application, the closing NAV of the day on which the funds are available for

utilization shall be applicable.

Repurchase including Switch - out: In respect of valid applications received upto 3 p.m. by the Mutual Fund, same days closing NAV

shall be applicable. In respect of valid applications received after 3 p.m. by the Mutual Fund, the closing NAV of the next business day

shall be applicable.

Special Facilities:

Systematic Investment Plan (SIP) Available (only in Retail Plan)

Systematic Transfer Plan (STP) Available (only in Retail Plan)

Systematic Withdrawal Plan (SWP) Available (Both in Retail and Institutional Plan)

Dividend Transfer Plan (DTP) Available (Both in Retail and Institutional Plan)

Auto Debit and Electronic Clearing Service Available (Both in Retail and Institutional Plan)

Online Transactions Available (Both in Retail and Institutional Plan)

Disclaimer

Sponsor: Reliance Capital Limited Trustee: Reliance Capital Trustee Co. Limited Investment Manager: Reliance Capital Asset

Management Limited Statutory Details: The Sponsor, the Trustee and the Investment Manager are incorporated under the Companies

Act 1956.

Reliance Gilt Securities Fund (An Open-ended Govt. Securities Scheme): The primary investment objective of the scheme is to

generate optimal credit risk-free returns by investing in a portfolio of securities issued and guaranteed by the Central Government and

State Government.

Sector Specific Schemes

These are the funds/schemes which invest in the securities of only those sectors or

industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast

Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these

funds are dependent on the performance of the respective sectors/industries. While



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these funds may give higher returns, they are more risky compared to diversified

funds. Investors need to keep a watch on the performance of those

sectors/industries and must exit at an appropriate time. They may also seek advice

of an expert.

Exchange Traded Funds (ETFs)

Exchange Traded Funds (ETFs) are usually passively managed mutual fund

schemes tracking a benchmark index and reflect the performance of that index.

These schemes are listed on the stock exchange and therefore have the flexibility

of trading like a share on the stock exchange. It can also be looked as a security

that tracks an index, a commodity or a basket of assets like an index fund, but

trades like a stock on an exchange, thus experiencing price changes throughout the

day as it is bought and sold.

Fixed Maturity Plans (FMPs)

Fixed Maturity Plans (FMPs) are basically debt oriented investment schemes with

a pre-specified tenure offered by mutual funds. FMPs invest in a portfolio of debt

instruments whose maturity coincides with the maturity of the concerned FMP.

The primary objective of a FMP is to generate income while aiming to protect the

capital by investing in a portfolio of debt and money market securities. Since

FMPs are available with several maturity options, one can invest in the relevant

plan depending upon his investment horizon and the requirement of cash flows.

HDFC Asset Management Company Limited (AMC)



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HDFC Asset Management Company Ltd (AMC) was incorporated under the

Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset

Management Company for the HDFC Mutual Fund by SEBI vide its letter dated

July 3, 2000.

The registered office of the AMC is situated at Ramon House, 3rd Floor, H.T.

Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai - 400 020.

In terms of the Investment Management Agreement, the Trustee has appointed theHDFC Asset Management Company Limited to manage the Mutual Fund. The

paid up capital of the AMC is Rs. 25.161 crore.

The present equity shareholding pattern of the AMC is as follows :

Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund,

following a review of its overall strategy, had decided to divest its AssetManagement business in India. The AMC had entered into an agreement with ZIC

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

On obtaining the regulatory approvals, the following Schemes of Zurich India

Mutual Fund have migrated to HDFC Mutual Fund on June 19, 2003. These

Schemes have been renamed as follows:

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

The AMC is managing 24 open-ended schemes of the Mutual Fund viz. HDFC

Growth Fund (HGF), HDFC Balanced Fund (HBF), HDFC Income Fund (HIF),



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HDFC Liquid Fund (HLF), HDFC Long Term Advantage Fund (HLTAF), HDFC

Children's Gift Fund (HDFC CGF), HDFC Gilt Fund (HGILT), HDFC Short Term

Plan (HSTP), HDFC Index Fund, HDFC Floating Rate Income Fund (HFRIF),

HDFC Equity Fund (HEF), HDFC Top 200 Fund (HT200), HDFC Capital Builder

Fund (HCBF), HDFC TaxSaver (HTS), HDFC Prudence Fund (HPF), HDFC High

Interest Fund (HHIF), HDFC Cash Management Fund (HCMF), HDFC MF

Monthly Income Plan (HMIP), HDFC Core & Satellite Fund (HCSF), HDFC

Multiple Yield Fund (HMYF), HDFC Premier Multi-Cap Fund (HPMCF), HDFC

Multiple Yield Fund . Plan 2005 (HMYF-Plan 2005), HDFC Quarterly Interval

Fund (HQIF) and HDFC Arbitrage Fund (HAF).

The AMC is also managing 10 closed ended Schemes of the HDFC Mutual Fund

viz. HDFC Long Term Equity Fund, HDFC Mid-Cap Opportunities Fund, HDFC

Infrastructure Fund, HDFC Fixed Maturity Plans - Series V, HDFC Fixed Maturity

Plans - Series VII, HDFC Fixed Maturity Plans - Series VIII, HDFC Fixed

Maturity Plans - Series IX, HDFC Fixed Maturity Plans - Series X, HDFC Fixed

Maturity Plans - Series XI and HDFC Fixed Maturity Plans - Series XII.

The AMC is also providing portfolio management / advisory services and such

activities are not in conflict with the activities of the Mutual Fund. The AMC has

renewed its registration from SEBI vide Registration No. - PM / INP000000506

dated December 21, 2009 to act as a Portfolio Manager under the SEBI (Portfolio

Managers) Regulations, 1993. The Certificate of Registration is valid from January

1, 2010 to December 31, 2012.

Types of investment Opportunities offered by HDFC:



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HDFC Prudence Fund

Investment Objective

The investment objective of the Scheme is to provide periodic returns and capital appreciation over a long period of time, from a

judicious mix of equity and debt investments, with the aim to prevent/ minimise any capital erosion.

Basic Scheme Information

Nature of Scheme Open Ended Balanced Scheme

Inception Date February 01, 1994

Option/Plan Dividend Option,Growth Option. The Dividend Option offers Dividend Payout and

Reinvestment Facility.

Entry Load

(purchase / additional purchase / switch-in)

NIL

(With effect from August 1, 2009)

Exit Load

(as a % of the Applicable NAV)

In respect of each purchase / switchin of units, an Exit Load of 1.00% is

payable if Units are redeemed / switched-out within 1 year from the date of

allotment..

No Exit Load is payable if Units are redeemed / switched-out after 1 year from

the date of allotment.Minimum Application Amount For new investors :Rs.5000 and any amount thereafter.

For existing investors : Rs. 1000 and any amount thereafter.

Lock-In-Period Nil

Net Asset Value Periodicity Every Business Day.

Redemption Proceeds Normally dispatched within 3 Days

Tax Benefits

(As per present Laws)

Current Expense Ratio (#)

(Effective Date 22nd May 2009)

On the first 100 crores average weekly net assets 2.50%

On the next 300 crores average weekly net assets 2.25%

On the next 300 crores average weekly net assets 2.00%On the balance of the assets 1.75%

http://images.google.co.in/imgres?imgurl=http://www.amfiindia.com/images/logos/logo9.gif&imgrefurl=http://www.amfiindia.com/amfiMembers.aspx%3Fmfid%3D9&usg=__kTvG40lIBD5QP3Ms4m_pSXVr9YY=&h=58&w=150&sz=6&hl=en&start=13&itbs=1&tbnid=PK-7OwS2T9vN-M:&tbnh=37&tbnw=96&prev=/images%3Fq%3Dhdfc%2Bmutual%2Bfund%2Blogo%26hl%3Den%26gbv%3D2%26tbs%3Disch:1http://images.google.co.in/imgres?imgurl=http://www.amfiindia.com/images/logos/logo9.gif&imgrefurl=http://www.amfiindia.com/amfiMembers.aspx%3Fmfid%3D9&usg=__kTvG40lIBD5QP3Ms4m_pSXVr9YY=&h=58&w=150&sz=6&hl=en&start=13&itbs=1&tbnid=PK-7OwS2T9vN-M:&tbnh=37&tbnw=96&prev=/images%3Fq%3Dhdfc%2Bmutual%2Bfund%2Blogo%26hl%3Den%26gbv%3D2%26tbs%3Disch:1


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HDFC Tax Saver (ELSS)


The investment objective of the Scheme is to achieve long term growth of capital.


Nature of Scheme Open Ended Equity Linked Savings Scheme with a lock-in period of 3 years

Inception Date December 18, 1995



Entry Load


NIL


Exit Load

(as a % of the Applicable NAV) No Exit Load shall be levied on bonus units and units allotted on dividend

reinvestment.

Minimum Application Amount For new & existing investors :Rs.500 and in multiples thereafter.

Lock-In-Period 3 Years from the date of allotment of the respective Units.


Redemption Proceeds Normally dispatched within 3 Business days(Subject to completion of Lock-in period)

Tax Benefits




On the first 100 crores average weekly net assets 2.50%



On the balance of the assets 1.75%

HDFC Gilt Fund - Short Term Plan

http://images.google.co.in/imgres?imgurl=http://www.nmfincon.com/dAdmin/dImages/HDFC_growth_fund.gif&imgrefurl=http://www.nmfincon.com/frmDownloadForms.php&usg=__ikY0p3bHNxcsQHsVPJTvZpBARTs=&h=179&w=180&sz=15&hl=en&start=3&itbs=1&tbnid=ayFgzoBFl5EdOM:&tbnh=100&tbnw=101&prev=/images%3Fq%3DHDFC%2BGrowth%2BFund%26hl%3Den%26sa%3DG%26gbv%3D2%26tbs%3Disch:1


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The primary objective of the Scheme is to generate credit riskfree returns through investments in sovereign securities issued by the

Central Government and/or a State Government.


Nature of Scheme Open Ended Income Scheme

Inception Date July 25, 2001



Entry Load


NIL


Exit Load

(as a % of the Applicable NAV)

Nil

No Exit Load shall be levied on bonus units and units allotted on dividend

reinvestment.

Minimum Application Amount For new investors :Rs.5000 and any amount thereafter.

For existing investors : Rs. 1000 and any amount thereafter.

Lock-In-Period Nil


Redemption Proceeds Normally despatched within 3-4 Business Days

Tax Benefits




0.65%

DSP ML Asset Management Company

DSP BlackRock Investment Managers Pvt. Ltd. is the investment manager to DSP

BlackRock Mutual Fund.

The philosophy of DSP BlackRock Investment Managers Pvt. Ltd. has been

grounded in the belief that experienced investment professionals, using a



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disciplined process and sophisticated analytical tools, can consistently add value to

client portfolios.

DSP BlackRock Investment Managers Pvt. Ltd. takes a three dimensional

approach to the management of the organization, incorporating functional, product

and regional elements in support of clients' goals. The functional dimension looks

at the company's operations by specific task, such as portfolio management,

account management or operations. The product dimension brings together the

cross-disciplinary expertise critical to managing client assets in each class. Finally,

the regional aspect of the company's model recognizes the unique, geography-

specific needs of clients as well as the importance of local regulatory issues.

With our three-dimensional approach to managing the organization, we seek to:

Ensure consistency on a global basis;

Allow for the tailoring of products and services according to client or local

needs;

Promote teamwork among our employees worldwide; and

Facilitate operational integrity and efficiency

integrity and efficiency

Naganath - President & CIO

Anup Maheshwari - Exec. Vice President, Head Equities & Corporate

Strategy

Dhawal Dalal - Senior Vice President & Head Fixed Income Apoorva Shah - Exec. Vice President & Fund Manager

Pankaj Sharma - Exec. Vice President, Head of Business Development &

Risk Management

Ramamoorthy Rajagopal - Exec. Vice President, CAO



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Ajit Menon - Senior Vice President, Head of Sales

Types of Investment Opportunities offered by DSP ML:

Equity Schemes

Natural Resources & New Energy Fund

Micro Cap Fund

DSP Black rock Equity Fund

Top 100 Equity Fund

DSP Black Rock Opportunities Fund

DSP India T.I.G.E.R. Fund

Technology. Com. Fund

Small & Mid-Cap Fund

Tax Saver Fund

http://images.google.co.in/imgres?imgurl=http://unifiedfinancialsolutions.co.in/AMCLogoPix/dsp.gif&imgrefurl=http://www.unifiedfinancialsolutions.co.in/hall_of_funds.html&usg=__06ZjgfBcNJJLbgEpVYmFKCBq75E=&h=739&w=1298&sz=113&hl=en&start=1&itbs=1&tbnid=BGD_RTXCFIDbZM:&tbnh=85&tbnw=150&prev=/images%3Fq%3DDSP%2BML%2Bmutual%2Bfund%26hl%3Den%26gbv%3D2%26tbs%3Disch:1


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Hybrid Schemes

Saving Manager Fund-Conservative, Moderate, Aggressive

Balanced Fund

An Open Ended income Scheme, seeking to generate an attractive return,

consistent with prudent risk, from a portfolio which is substantially constituted of

quality debt securities. The Scheme will also seek to generate capital appreciation

by investing a smaller portion of its corpus in equity and equity related securities

of the 100 largest corporate, by market capitalization, listed in India.

Plans Minimum Investment No Plans Regular Purchase Rs. 5,000 and

multiples of Re. 1/- thereafter.

SIP Rs. 1000 (Minimum 12

installments)Options Minimum Additional Purchase

Growth

Monthly Income Payment** (MIP)

Payout

Reinvest

Quarterly Income Payment (QIP)

Payout

Reinvest

Regular Rs.1000

Expense Ratio* Exit LoadPlan Ratio Plan % Load Holding Period

Regular 2.16% Regular 1%


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Investment Nil 12 months

Fixed Income Schemes

Liquidity Fund

Floating Rate Fund

Money Manager Fund

Treasury Bill fund

Short Term Fund

Bond Fund

Government Securities Fund

Strategic Bond Fund

The primary investment objective of the Scheme is to seek to generate capital

appreciation and provide long term growth opportunities by investing in equity and

equity related securities of companies domiciled in India whose predominant

economic activity is in the:-(a) discovery, development, production, or distributionof natural resources, viz., energy, mining etc; (b) alternative energy and energy

technology sectors, with emphasis given to renewable energy, automotive and on-

site power generation, energy storage and enabling energy technologies.

The Scheme will also invest a certain portion of its corpus in the equity and equity

related securities of companies domiciled overseas, which are principally engaged

in the discovery, development, production or distribution of natural resources and

alternative energy and/or the units/shares of BlackRock Global Funds New

Energy Fund, BlackRock Global Funds World Energy Fund and similar other

overseas mutual fund schemes. The secondary objective is to generate consistent

returns by investing in debt and money market securities.



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Plans Minimum Investment Regular

Institutional

Regular Rs. 5,000 and multiples of Re.

1/- thereafter

Institutional - Rs. 5 crore and multiples

of Re 1/- thereafter

SIP Rs. 1000 (min 12 installments)Options Minimum Additional Purchase

Growth

Dividend - Payout Reinvest

Regular Rs.1000

Institutional Rs.1000Expense Ratio* Exit LoadPlan Ratio Plan % Load Holding Period

Regular 2.01% Regular

(For Regular& SIP

Purchase)

1% < 12 monthsInstitutional 1.22% Nil

12months

Institutional 1% < 12 monthsNil 12months

Fund Of Fund Schemes

World Gold Fund

World Energy Fund

World Mining Fund



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SBI Mutual Fund

SBI Mutual Fund is Indias largest bank sponsored mutual fund and has an

enviable track record in judicious investments and consistent wealth

creation.

The fund traces its lineage to SBI - Indias largest banking enterprise. The

institution has grown immensely since its inception and today it is India's

largest bank, patronized by over 80% of the top corporate houses of the

country.

SBI Mutual Fund is a joint venture between the State Bank of India and

Socit Gnrale Asset Management, one of the worlds leading fund

management companies that manages over US$ 500 Billion worldwide.

In twenty years of operation, the fund has launched 38 schemes and

successfully redeemed fifteen of them. In the process it has rewarded its

investors handsomely with consistent returns.



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A total of over 5.8 million investors have reposed their faith in the wealth

generation expertise of the Mutual Fund.

Schemes of the Mutual fund have consistently outperformed benchmark

indices and have emerged as the preferred investment for millions of

investors and HNIs.

Today, the fund manages over Rs. 38,782 crores of assets and has a diverse

profile of investors actively parking their investments across 38 active

schemes.

The fund serves this vast family of investors by reaching out to them through

network of over 130 points of acceptance, 28 investor service centers, 46

investor service desks and 56 district organizers.

SBI Mutual is the first bank-sponsored fund to launch an offshore fund

Resurgent India Opportunities Fund.

Growth through innovation and stable investment policies is the SBI MF

credo

Types of Investment Opportunities Offered By SBI:

Equity Schemes

The investments of these schemes will predominantly be in the stock markets

and endeavor will be to provide investors the opportunity to benefit from the

higher returns which stock markets can provide. However they are also

exposed to the volatility and attendant risks of stock markets and hence

should be chosen only by such investors who have high risk taking



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capacities and are willing to think long term. Equity Funds include

diversified Equity Funds, Sectoral Funds and Index Funds. Diversified

Equity Funds invest in various stocks across different sectors while sectoral

funds which are specialized Equity Funds restrict their investments only to

shares of a particular sector and hence, are riskier than Diversified Equity

Funds. Index Funds invest passively only in the stocks of a particular index

and the performance of such funds move with the movements of the index.

Debt Schemes

Debt Funds invest only in debt instruments such as Corporate Bonds,

Government Securities and Money Market instruments either completely

avoiding any investments in the stock markets as in Income Funds or Gilt

Funds or having a small exposure to equities as in Monthly Income Plans or

Children's Plan. Hence they are safer than equity funds. At the same time the

expected returns from debt funds would be lower. Such investments are

advisable for the risk-averse investor and as a part of the investment

portfolio for other investors.

Balanced Schemes

Magnum Balanced Fund invest in a mix of equity and debt investments.

Hence they are less risky than equity funds, but at the same time provide

commensurately lower returns. They provide a good investment opportunity

to investors who do not wish to be completely exposed to equity markets,

but is looking for higher returns than those provided by debt funds.



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Exchange Traded Schemes

SBI Gold Exchange Traded Scheme

Tata Asset Management Company

Overview

At Tata Asset Management Company, we believe that your investment needs

depend on personal and financial goals. Identifying your financial goals is the key

to achieving the big things in your life, be it your child's education or a carefree

and comfortable retired life.

After identifying and defining your financial goals, you now need to plan for each

of them in an organised and a professional way. Investment experts around the

world advise instruments like equity funds and stocks for long-term (more than 5

years), income funds for medium-term and liquid funds for short-term needs.

The investment matrix here depicts the entire available variety of investment

options. Those at the top provide for a greater opportunity for long-term capital

growth while those at the bottom take care of current income and reasonable return

& liquidity. Tata Mutual Fund offers a wide range of funds for different

investment instruments designed to cater to your individual profile and life-stage.



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Types Of Investment Opportunities Offered By Tata:

Type of Scheme A 36 months close ended hybrid scheme.

Launch Date April 27, 2009

Fund Objective The primary objective of the scheme is to generate returns by investing

systematically in equity / equity related instruments.

Asset Allocation Scheme A:

During first twelve months from the date of allotment

Proportion** (% of Funds Available / Net Assets)

Instrument Minimum MaximumRisk

ProfileEquity & equity related

instruments0 100 High

Debt, Money Market andSecuritized Debt

Instruments*

0 100Low to

medium

After completion of twelve months till maturity


Instrument Minimum MaximumRisk

Profile

Equity & equity relatedinstruments

65 100 High

Debt, Money Market and

Securitized Debt

Instruments*

0 35Low to

medium



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Type of Scheme An open-ended balanced fund

Launch Date August 30, 1995

Fund Objective The investment objective of the scheme is to provide income

distribution and / or medium to long term capital gains while at all

times emphasising the importance of capital appreciation.Fund Investment

Strategy

The scheme will invest in equity and equity related instruments as well

as in debt and money market instruments.

Asset Allocation

Instruments

Indicative

allocations**

( % of total assets)

Risk Profile

MinimumMaximum High/Medium/Low

Equity and Equity Related

Instruments75 65 High

Debt*, Money Market and

Cash35 25 Low to Medium

** At the time of investment.

Investment by the scheme in securitised debt, will not normally

exceed 50% of the debt investments in the scheme.

Investment in derivatives/ futures/ options may be done for hedging

and portfolio balancing.

Liquidity NAV calculation on all business days

Options Available Growth & Dividend

Minimum Application

AmountRs.5,000/- and in multiples of Re.1/- thereafter

Type of Scheme A 36 months close-ended hybrid fund.

Launch Date May 10, 2007

Fund Objective The primary Investment Objective of the scheme is to achieve a long



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term growth. The scheme seeks to achieve its investment objective by

investing systematically in Equity / Equity related instruments.

Asset Allocation - Year

1


Instrument% of Funds

AvailableMinimum Maximum Risk Profile

Equity & equity related



Securitized Instruments65 100

Low to

Medium


2



Available

Minimum Maximum Risk ProfileEquity & equity related




Low to

Medium


3



Available

Minimum Maximum Risk Profile

Equity & equity related




Low to

Medium

* Investment by the scheme in securitised debt will not normally

exceed 20% of net assets of the scheme

** At the time of investment

Options Available Dividend & Growth

Load Structure Entry Load - Nil.Exit Load - Nil *

* An early exit charge equivalent to the unamortised new fund offer

expenses will be recovered from the investor in case of redemption

before expiry of 3 years from the date of allotment

Minimum Application Rs.5,000/- & in multiples of Re.1/- thereafter.



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Amount

Debt Products

Type of Scheme An open-ended dedicated Government Securities Fund

Launch Date August 3, 1999

Fund Objective The investment objective of the Scheme will be to generate risk-free

return and thus provide medium to long term capital gains and income

distribution to its unitholders, while at all times emphasising the

importance of capital preservation.

Fund Investment

Strategy

The investments would be solely in sovereign securities issued by the

Central Government and/or State Government and/or any securityunconditionally guaranteed by the Government of India.

Asset Allocation 1) Regular Plan / High Investment Plan

Instruments

Indicative allocationsRisk Profile

(% of total assets)


Government Securities 100 65 Low to Sovereign


2) Short Maturity Plan

Instruments

Indicative allocationsRisk Profile

(% of total assets)


Government Securities 100 65 Low to Sovereign



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Liquidity Purchase and sale on all business days.

Options Available Regular Plan

Short Maturity Plan

High Investment Plan

Retirement Planning Series

Under each plan there is Dividend / Bonus and Growth options

NAV Calculation On all business days

Minimum Application

Amount

Rs.10,000/- & in multiples of Re.1/- for Regular & Short Maturity

Options .

Rs. 50,000/- & in multiples of Re.1/- for High Investment Plan &

Retirement Planning Series

GOVERNANCE OF MUTUAL FUND INDUSTRY

Securities & Exchange Board of India (SEBI) is the apex regulator of capital

markets. Issuance & trading of capital market instruments & the regulation of

primary regulator of mutual funds in India. SEBI has enacted the SEBI (Mutual

Funds) Regulations, 1996, which provides the scope of the regulation of mutual

funds in India. It is mandatory that mutual funds should be registered with SEBI.

The structure & the formation of mutual funds, appointment of key functionaries

& investors, investment restrictions, compliance & penalties are all defined under

SEBI Regulations. Mutual funds have to send a seven-year compliance reports to

SEBI. SEBI is also empowered to periodically inspect mutual fund organizations

to ensure compliance with SEBI regulations. SEBI also regulates other fund

constituents such as AMCs, trustees, custodians etc.

RBI is the monetary authority of the country & is also the regulator of the banking

system. Earlier bank sponsored mutual funds were under the dual regulatory

control of RBI & SEBI. Money market mutual funds which invested in short-term



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instruments were also regulated by the RBI. These provisions are no longer in

vogue. SEBI is the regulator of all mutual funds. The present position is that RBI

is involved with the mutual funds industry, only to limited extent of being the

regulator of the sponsors of bank-sponsored mutual funds. Specifically if the

sponsor has made any financial commitment to the investors of the mutual funds,

in the form of guaranteeing assured returns, such guarantees can no longer be

made without the prior approval of the RBI. RBI will review the financial

condition & capital adequacy of the sponsored bank, before permitting it to make

such guarantee.

RBI is the issuer of government securities & also the regulator of money market.

Mutual funds invest in these securities & are affected by the RBI stipulations on

the structure pricing & trading of these instruments. The finance ministry is the

supervisor of both RBI & SEBI. The ministry of finance is also the appellate

authority under SEBI regulations. Aggrieved parties can also make appeals to the

MOF on the SEBI rulings relating to mutual funds.

The AMC & the trustees company may be structured as limited companies, which

come under the regulatory purview of the Company Law Board (CLB). The

provisions of the Companies Act 1956 are applicable to these company forms of

organizations. The CLB is the apex regulatory authority for companies also the

appellate authority for all the issues relating to the Companies Act. Any

grievances against the AMC or the trustees company can be addressed to the CLB

for redressed. The Registrar of Companies overseas the compliance by the AMC &

trustee company, with the provisions of the Companies Act. Periodic reports &

annual accounts have to be filed by these companies with the ROC. The

Department of Company Affairs (DCA) is responsible for the



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Formulation & modification of the laws relating to companies including the Indian

Companies Act. The DCA also has the powers to prosecute directors for non-

compliance with provisions of the Act.

If a mutual fund has listed its scheme on stock exchanges, such listings are subject

to the listings regulations of stock exchanges. Mutual funds have to sign the listing

Matter Body

Documents