Project mutual fund

CHAPTER 1

EXECUTIVE SUMMARY

In few years Mutual Fund has emerged as a tool for ensuring one’s financial well-being. Mutual

Funds have not only contributed to the India growth story but have also helped families tap into

the success of Indian Industry. As information and awareness is rising more and more people

are enjoying the benefits of investing in mutual funds.

The main reason the number of retail mutual fund investors remains small is that nine in ten

people with incomes in India do not know that mutual funds exist. But once people are aware of

mutual fund investment opportunities, the number who decide to invest in mutual funds

increases to as many as one in five people. The trick for converting a person with no knowledge

of Mutual Funds to a new Mutual Fund customer is to understand which of the potential

investors are more likely to buy Mutual Funds and to use the right arguments in the sales

process that customers will accept as important and relevant to their decision.

This Project gave me a great learning experience and at the same time it gave me enough scope

to implement my analytical ability. The analysis and advice presented in this Project Report is

based on market research on the saving and investment practices of the investors and

preferences of the investors for investment in Mutual Funds. This Report will help to know

about the investors’ Preferences in Mutual Fund means Are they prefer any particular Asset

Management Company (AMC), Which type of Product they prefer, Which Option (Growth or

Dividend) they prefer or Which Investment Strategy they follow (Systematic Investment Plan or

One time Plan).

CHAPTER 2

INTRODUCTION

INTRODUCTION

Investment in share markets are influenced by the analysis & reasoning which help in

predicting the market to some extent. Over the past years a number of technical & theories for

analysis have evolved, these combined with modern technology guides the investor. The big

players in the market, like Foreign Institutional Investors, Mutual Funds, etc. have the expertise

for various analytical tools & make use of them. The small investors are not in a position to

benefit from the market the way Mutual Funds can do. Generally a small investor’s investments

are based on market sentiments, inside information, through grapevine, tips & intuition.

Indian Stock market has undergone tremendous changes over the years. Investment in

Mutual Funds has become a major alternative among Investors. The project has been carried out

to have an overview of Mutual Fund Industry and to understand investor’s perception about

Mutual Funds in the context of their trading preference, explore investor’s risk perception & find

out their preference over Top Mutual funds.

CHAPTER 3

SECTOR INFORMATION

3.1)WHAT IS MUTUAL FUND?

Mutual Fund is saving or investment vehicle, akin to, but different from bank deposits,

shares etc., It is an entity wherein people / institutions pool small amounts of money into larger

amounts for investment and achieve returns with minimum risk, which otherwise is not possible

by a common man.

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, capital market instruments such as shares, debentures and other 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

appreciations realized by the scheme are shared by its unit holders in proportion to the number of

units owned by them. Thus a Mutual Fund is the most suitable investment for the common man

as it offers an opportunity to invest in a diversified, professionally managed 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. Anybody with an

ingestible surplus of as little as a few thousand rupees can invest in Mutual Funds. Each Mutual

Fund scheme has a defined investment objective and strategy.

3.2THE FLOW CHART BELOW DESCRIBES BROADLY

THE WORKING OF MUTUAL FUND

The structure of Mutual Funds in India is governed by SEBI (Mutual Fund) Regulations,

1996.

It is mandatory to have a three tier structure of Sponsor – Trustee – Asset Management

Company.

The trust is established by a Sponsor or more than one sponsor who is like a promoter of

a company. He appoints the Trustees who are responsible to the investors of the fund.

The Trustees of the mutual fund hold its property for the benefit of the unit holders.

Asset Management Company (AMC) approved by SEBI is the business face of the

mutual fund as it manages all the affairs of the fund by making investments in various

types of securities. Custodian, who is registered with SEBI, holds the securities of various

schemes of the funds in its custody

3.3HISTORY OF INDIAN MUTUAL FUNDS INDUSTRY The mutual fund industry in India started in 1963 with the formation of Unit Trust of

India, at the initiative of the Government of India and Reserve Bank. The history of mutual funds

in India can be broadly divided into four distinct phases.

First Phase – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the

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

Reserve Bank of India. In 1978 UTI was 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

Crores of assets under management.

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

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and

Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC).

SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Can

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

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

its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At the end

of 1993, the mutual fund industry had assets under management of Rs.47, 004 Crores.

Third Phase – 1993-2003 (Entry of Private Sector Funds)

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

industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in

which the first Mutual Fund Regulations came into being, under which all mutual funds, except

UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with

Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993

SEBI (Mutual Fund) Regulations were substituted by a more

Comprehensive and revised Mutual Fund Regulations in 1996. The industry now

functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual fund houses

went on increasing, with many foreign mutual funds setting up funds in India and also the

industry has witnessed several mergers and acquisitions. As at the end of January 2003, there

were 33 mutual funds with total assets of Rs. 1, 21, 805 Crores. The Unit Trust of India with

Rs.44, 541 Crores of assets under management was way ahead of other mutual funds.

Fourth Phase – since February 2003

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

into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets

under management of Rs.29, 835 crores as at the end of January 2003, representing broadly, the

assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of

Unit Trust of India, functioning under an

Administrator and under the rules framed by Government of India and does not come under the

purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by

SBI, PNB, BOB and LIC. It is registered with 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. As at the end of September, 2004, there

were 29 funds, which manage assets of Rs.153108 Crores under 421 schemes.

3.4) STRUCTURE OF THE INDIAN MUTUAL FUND

INDUSTRY

The largest categories of Mutual Funds are the ones floated by the private sector and by

Foreign Asset Management Companies. The largest of these are Prudential ICICI AMC and

Birla Sun Life AMC. The aggregate corpus of assets managed by this category of AMCs is in

excess of Rs.350 bn.

Earlier the Indian Mutual Fund industry was dominated by the Unit Trust of India which

has a total corpus of Rs.700 bn collected from more than 20 million investors. The UTI has many

funds/schemes in all categories i.e. equity, balanced, income etc. with some being open-ended

and some being closed-ended. The Unit Scheme 1964 commonly referred to as US 64, which is a

balanced fund, is the biggest scheme with a corpus of about Rs.200 bn.

The second largest categories of mutual funds are the ones floated by nationalized banks.

Canara bank Asset Management floated by Canara Bank and SBI Funds Management floated by

the State Bank of India are the largest of these. GIC AMC floated by the General Insurance

Corporation and JeevanBimaSahayog AMC floated by the LIC are some of the other prominent

ones. The aggregate corpus of funds managed by this category of AMCs is about Rs.200 bn.

3.5)How are the Mutual Funds Structured?

The Mutual Funds are structured in two forms: Company form and Trust form.

Company Form: These forms of mutual funds are more popular in US.

Trust Form: In India, mutual funds are organized as Trusts. The Trust is either managed by a

Board of Trustees or by a Trustee Company. There must be at least 4 members in the Board of

Trustees and at least 2/3 of the members of the board must be independent. Trustee of one

mutual fund cannot be a trustee of another mutual fund.

Unit Trusts – Constituents:

A Mutual Fund is set up in the form of a Trust which has the following constituents:-

1. Fund Sponsor

2. Mutual Fund as Trust

3. Asset Management Company

4. Other Fund Constituents

4.1. Custodian and Depositors

4.2. Brokers

4.3. Transfer Agent

4.4. Distributors

3.6) MUTUAL FUND OVERVIEW

FUND SPONSOR

What a promoter is to a company, a sponsor is to a mutual fund. The sponsor initiates the idea to

set up a mutual fund. It could be a financial services company, a bank or a financial institution. It

could be Indian or foreign. It could do it alone or through a joint venture. In order to run a mutual

fund in India, the sponsor has to obtain a license from SEBI. For this, it has to satisfy certain

conditions, such as on capital and profits, track record (at least five years in financial services),

default-free dealings and a general reputation for fairness.

TRUST

The Mutual Fund is constituted as a Trust in accordance with the provisions of the Indian Trusts

Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908.

The Trust appoints the Trustees who are responsible to the investors of the fund.

TRUSTEES

Trustees are like internal regulators in a mutual fund, and their job is to protect the interests of

the unit holders. Trustees are appointed by the sponsors, and can be either individuals or

corporate bodies. In order to ensure they are impartial and fair, SEBI rules mandate that at least

two-thirds of the trustees be independent, i.e., not have any association with the sponsor.

Trustees appoint the AMC, which subsequently, seeks their approval for the work it does, and

reports periodically to them on how the business being run. Trustees float and market schemes,

and secure necessary approvals.

ASSET MANAGEMENT COMPANY (AMC)

An AMC is the legal entity formed by the sponsor to run a mutual fund. The AMC is usually a

private limited company in which the sponsors and their associates or joint venture partners are

the shareholders. The trustees sign an investment agreement with the AMC, which spells out the

functions of the AMC. It is the AMC that employs fund managers and analysts, and other

personnel. It is the AMC that handles all operational matters of a mutual fund from launching

schemes to managing them to interacting with investors. The people in the AMC who should

matter the most to you are those who take investment decisions. If a scheme’s corpus is up to

Rs.100 crores it pays 1.25% of its corpus a year; on over Rs.100 crores, the fee is 1% of the

corpus. So, if a fund house has two schemes, with a corpus of Rs.100 crores and Rs.200 crores

respectively, the AMC will earn Rs.3.25 crore (1.25+2) as fund management fee that year.

REGULATORY REQUIREMENTS FOR THE AMC:

Only SEBI registered AMC can be appointed as investment managers of mutual funds.

AMC must have a minimum net worth of Rs.10 crores at all times.

An AMC cannot be an AMC or Trustee of another Mutual Fund.

AMCs cannot indulge in any other business, other than that of asset management

At least half of the members of the Board of an AMC have to be independent.

The 4th schedule of SEBI Regulations spells out rights and obligations of both trustees

and AMCs.

CUSTODIAN

A custodian handles the investment back office of a mutual fund. Its responsibilities include

receipt and delivery of securities, collection of income, distribution of dividends and segregation

of assets between the schemes. It also track corporate actions like bonus issues, right offers, offer

for sale, buy back and open offers for acquisition. The sponsor of a mutual fund cannot act as a

custodian to the fund. This condition, formulated in the interest of investors, ensures that the

assets of a mutual fund are not in the hands of its sponsor. For example, Deutsche Bank is a

custodian, but it cannot service Deutsche Mutual Fund.

BROKERS

Role of Brokers in a Mutual Fund:

They enable the investment managers to buy and sell securities and charge commission

for their services.

Brokers are the registered members of the stock exchange and Act as an important source

of Market Information.

TRANSFER AGENTS

Registrars, also known as the transfer agents, are responsible for the investor servicing functions.

This includes issuing and redeeming units, sending fact sheets and annual reports. Some fund

houses handle such functions in-house. Others outsource it to the Registrars; Karvy and CAMS

are the more popular ones. It doesn’t really matter which model your mutual fund opt for, as long

as it is prompt and efficient in servicing you. Most mutual funds, in addition to registrars, also

have investor service centers of their own in some cities.

Some of the investor’s – related services are:-

Processing investor applications.

Recording details of the investors.

Sending information to the investors and Keeping investors information up to date.

Processing dividend payout.

Incorporating changes in the investor information.

DISTRIBUTORS

Role of Selling and Distribution Agents:

Selling agents bring investor’s funds for a commission.

Distributors appoint agents and other mechanisms to mobilize funds from the investors.

Banks and post offices also act as distributors.

The commission received by the distributors is split into initial commission which is paid

on mobilization of funds and trail commission which is paid depending on the time the

investor stays with the fund.

SEBI REGULATIONS:

As far as mutual fund are concerned, SEBI formulates policies and regulates the mutual

funds to protect the interest of the investors.

SEBI notified regulations for the mutual funds in 1993. Thereafter, mutual funds

sponsored by private sector entities were allowed to enter the capital market.

The regulations were fully revised in 1996 and have been amended thereafter from time

to time.

SEBI has also issued guidelines to the mutual funds from time to time to protect the

interest of investors.

All mutual funds whether promoted by public sector or private sector entities including

those promoted by foreign entities are governed by same set regulations. The risks

associated with the schemes launched by the mutual funds sponsored by these entities are

of similar type. There is no distinction in regulatory requirements for these mutual funds

and all are subject to monitoring and inspections by SEBI.

SEBI Regulations require that at least two thirds of the directors of trustee company or

board of trustee must be independent i.e. they should not be associated with the sponsor.

Also, 50% of the directors of AMC must be independent. All mutual funds are required

to be register with SEBI before they launch any scheme.

Further SEBI regulations, inter-alia, stipulate that MFs cannot guarantee returns in any

scheme and that each scheme is subject to 20 : 25 condition [ i.e. minimum 20 investors

per scheme and one investors can hold more than 25% stake in the corpus in that one

scheme ]

Also SEBI has permitted MFs to launch schemes overseas subject various restrictions and

also to launch schemes linked to Real Estate, options and futures, commodities, etc.

ASSOCIATIONS OF MUTUAL FUNDS IN INDIA (AMFI)

With the increase in mutual fund players in India, a need for mutual fund associations in

India was generated to function as a non-profit organization. Association of mutual funds in

India (AMFI) was incorporated on 22nd August, 1995.

AMFI is an apex body of all Asset Management Companies (AMC) which has been

registered with SEBI. Till date all the AMCs are that have launched mutual fund schemes are its

members. It functions under the supervision and guidelines of its Board of Directors.

Association of Mutual Fund India has brought down the Indian Mutual Fund Industry to a

professional and healthy market with ethical lines enhancing and maintaining standards. It

follows the principle of both protecting and promoting the interest of mutual funds as well as

their unit holders.

THE OBJECTIVES OF ASSOCIATION OF MUTUAL FUNDS IN

INDIA:

The Association of Mutual Funds of India works with 30 registered AMCs of the country.

It has certain defined objectives which juxtaposes the guidelines of the both Director. The

objectives are as follows:

This mutual fund association of India maintain high professional and ethical standard in

all areas of operations of the industry.

It also recommends and promotes the top-class business practices and code of conduct

which is followed by members and related people engaged in the activities of mutual

fund and asset management. The agencies who are by any means connected or involved

in the field of capital market and financial services also involved in this code of conduct

of the association.

AMFI interacts with SEBI and works according to SEBI guidelines in to the mutual fund

industry.

Association of mutual fund of India do represent government of India, the reserve bank

of India and other related bodies on matters relating to mutual fund industry.

It develops a team of well qualified and trained agent distributors.it implements a

programme of training and certification for all intermediaries and other engaged in the

mutual fund industry.

AMFI undertakes all India awareness programme for investors in order to promote

proper understanding of the concept and working of the mutual funds.

At last but not least association of Mutual fund of India also disseminate information on

mutual fund industry and undertakes studies and research either directly or in association

with other bodies.

AMFI Publications:

AMFI publish mainly two types of bulletin. One is on the monthly basis and other is

quarterly. These publications are of great support for the investors to get intimation of the

knowhow of their parked money.

MUTUAL FUND SCHEMES MAY BE CLASSIFIED ON THE BASIS OF

ITS STRUCTURE AND ITS INVESTMENT OBJECTIVE.

Functional Classification:

Open Ended Scheme: Open ended schemes are those which do not have a fixed maturity period.

You can enter into or exit from the scheme at any time. Buying and selling of units is related to

the Net Asset Value (NAV). Thus, open ended schemes offer liquidity, and this is one of the key

benefits.

Closed Ended Scheme: Close Ended Schemes are those that have stipulated maturity periods

(ranging from 2 to 15 years). You can invest directly in the scheme at the time of the initial issue

and thereafter you can buy or sell the units of the scheme on the stock exchanges where they are

listed. The market price of the units could vary from the NAV of the scheme on account of

demand and supply situations, investor’s expectations and other market factors. One of the

characteristics of close ended mutual fund schemes is that they generally trade at discounts to the

NAV; but closer to maturity the discount narrows

Portfolio Classification:

Growth Fund: The Fund invests 85 % in stocks and 15% in Debts. The main objective is to

provide long term capital appreciation.

Income Fund: The fund invests 85 % in Debt & 15% in stocks. The Main objective is to

Provide Regular Income.

Balanced Fund: The fund invest 50-60 % in stocks & 40-50% in debt instruments. The Main

Objective is to provide long term growth of Capital & Regular Income.

Gilt Fund: The fund invests 100% in State/Central Government securities. The main objective is

to provide risk free returns & liquidity.

Liquid Fund: The fund invests 100% in Government and Public sector bonds, Money market

instruments & corporate debt. The main objective is to provide an attractive rate of return whole

emphasizing Capital preservation and liquidity.

Other Special Schemes

Sector Fund: The fund invests 100% in individual sector stocks. The main objective is to

provide growth of capital over a period of time.

Tax Saving Schemes: The fund invests 100% in stocks. The main objective is to provide

Capital Appreciation. Units at this scheme are subject to lock in period of 3 years from the date

of allotment and also rebate of 20% is allowed under section 88 of IT act.

Index Funds: Index schemes are a type of mutual fund in which the portfolio weightage for

each stock will be similar to the index, which they are mirroring, like BSE Sensex or the NSE

50. The portfolio of these schemes will consist of only those stocks that constitute the index.

Index funds are expected to provide a rate of return over time that will approximate or match, but

not exceed, that of the market, which they are mirroring.

BENEFITS OF MUTUAL FUND INVESTMENT

Professional Management

Mutual Funds provide the services of experienced and skilled professionals, backed by a

dedicated investment research team that analyses the performance and prospects of companies

and selects suitable investments to achieve the objectives of the scheme.

Diversification

Mutual Funds invest in a number of companies across a broad cross-section of industries and

sectors. This diversification reduces the risk because seldom do all stocks decline at the same

time and in the same proportion. You achieve this diversification through a Mutual Fund with far

less money than you can do on your own.

Convenient Administration

Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad

deliveries, delayed payments and follow up with brokers and companies. Mutual Funds save

your time and make investing easy and convenient.

Low Costs and Return Potential

Over a medium to long-term, Mutual Funds have the potential to provide a higher return as they

invest in a diversified basket of selected securities. Mutual Funds are a relatively less expensive

way to invest compared to directly investing in the capital markets because the benefits of scale

in brokerage, custodial and other fees translate into lower costs for investors.

Liquidity

In open-end schemes, the investor gets the money back promptly at net asset value related prices

from the Mutual Fund. In closed end schemes, the units can be sold on a stock exchange at the

prevailing market price or the investor can avail of the facility of direct repurchase at NAV

related prices by the Mutual Fund.

Transparency

You get regular information on the value of your investment in addition to disclosure on the

specific investments made by your scheme, the proportion invested in each class of assets and

the fund manager's investment strategy and outlook.

Flexibility

Through features such as regular investment plans, regular withdrawal plans and dividend

reinvestment plans, you can systematically invest or withdraw funds according to your needs and

convenience.

Affordability

Investors individually may lack sufficient funds to invest in high-grade stocks. A mutual fund

because of its large corpus allows even a small investor to take the benefit of its investment

strategy.

Well Regulated

All Mutual Funds are registered with SEBI and they function within the provisions of strict

regulations designed to protect the interests of investors. The operations of Mutual Funds are

regularly monitored by SEBI.

RISKS ASSOCIATED WITH MUTUAL FUNDS:

The most important relationship to understand is the risk-return trade-off. Higher

the risk greater the returns/loss and lower the risk lesser the returns/loss.

Hence it is upto you, the investor to decide how much risk you are willing to take.

In order to do this you must first be aware of the different types of risks involved

with your investment decision.

MARKET RISK

Sometimes prices and yields of all securities rise and fall. Broad outside influences affecting the

market in general lead to this. This is true, may it be big corporations or smaller mid-sized

companies. This is known as Market Risk. A Systematic Investment Plan (“SIP”) that works on

the concept of Rupee Cost Averaging (“RCA”) might help mitigate this risk.

CREDIT RISK

The debt servicing ability (may it be interest payments or repayment of principal) of a company

through its cash flows determines the Credit Risk faced by you. This credit risk is measured by

independent rating agencies like CRISIL who rate companies and their paper. An ‘AAA’ rating

is considered the safest whereas a ‘D’ rating is considered poor credit quality. A well-diversified

portfolio might help mitigate this risk.

INFLATION RISK

Things you hear people talk about: “Rs.100 today is worth more than Rs.100 tomorrow.”

“Remember the time when a bus ride costed 50 paisa?” “MehangaiKaJamanaHai.”

The root cause, Inflation. Inflation is the loss of purchasing power over time. A lot

of times people make conservative investment decisions to protect their capital but end up with a

sum of money that can buy less than what the principal could at the time of the investment.

INTEREST RATE RISK

In a free market economy interest rates are difficult if not impossible to predict. Changes in

interest rates affect the prices of bonds as well as equities. If interest rates rise the prices of bonds

fall and vice versa. Equity might be negatively affected as well in a rising interest rate

environment. A well-diversified portfolio might help mitigate this risk.

POLITICAL RISK

Changes in government policy and political decision can change the investment environment.

They can create a favorable environment for investment or vice versa.

LIQUIDITY RISK

Liquidity risk arises when it becomes difficult to sell the securities that one has purchased.

Liquidity Risk can be partly mitigated by diversification, staggering of maturities as well as

internal risk controls that lean towards purchase of liquid securities. You have been reading

about diversification above, but what is it? Diversification The nuclear weapon in your arsenal

for your fight against Risk

BANKS V/S MUTUAL FUNDS

Mutual Funds are now also competing with commercial banks in the race for retail investor’s

savings and corporate float money. The power shift towards mutual funds has become obvious.

The coming few years will show that the traditional saving avenues are losing out in the current

scenario. Many investors are realizing that investments in savings accounts are as good as

locking up their deposits in a closet. The fund mobilization trend by mutual funds indicates that

money is going to mutual fund in a big way.

India is at the first stage of a revolution that has already peaked in the U.S. The U.S. boasts

of an Asset base that is much higher than its bank deposits. In India, mutual fund assets are not

even 10 per cent of the bank deposits, but this trend is beginning to change. This is forcing a

large number of banks to adopt the concept of narrow banking wherein the deposits are kept in

Gilts and some other assets which improves liquidity and reduces risk. The basic fact lies that

banks cannot be ignored and they will not close down completely. Their role as intermediaries

cannot be ignored. It is just that mutual funds are going to change the way banks do business in

the future.

CATEGORY

BANK

MUTUAL FUNDS

Returns

Low High

Risk Low Moderate

Investment options Less More

Transparent Network

High penetration Low but improving

Liquidity At a cost Better

Quality of assets Not transparent Transparent

Interest calculation calculation Minimum balance

between 10th & 30th of every month

Everyday

Guarantee Maximum Rs.1 lakh on deposits

None

THE FLOW CHART BELOW DESCRIBES BROADLY THE

WORKING OF A MUTUAL FUND

Mutual Fund operation flow chart

THE DIAGRAM BELOW ILLUSTRATES THE ORGANIZATIONAL SET UP OF A MUTUAL FUND

MAJOR PLAYERS IN MUTUAL FUNDS INDUSTRY

ABN AMRO Mutual Fund

Birla Sun Life Mutual Fund

HDFC Mutual Fund

HSBC Mutual Fund

ING Vysya Mutual Fund

Prudential ICICI Mutual Fund

Sahara Mutual Fund

State Bank of India Mutual Fund

Tata Mutual Fund

Kotak Mahindra Mutual Fund

Unit Trust of India Mutual Fund

Reliance Mutual Fund

Standard Chartered Mutual Fund

Franklin Templeton India Mutual Fund

Morgan Stanley Mutual Fund India

LIC Mutual Fund

GIC Mutual Fund

Fidelity Investments

ASSET UNDER MANAGEMENT:

AVERAGE AUM BY AMC