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A
PROJECT REPORT
On Study on Marketing Strategies Related toStudy on Marketing
Strategies Related toMutual Fund at Karvy stock broking ltd.Mutual
Fund at Karvy stock broking ltd.
A Training report submitted in the partial fulfillment of the
requirement of the degree of
MBA (MASTER OF BUSINESS ADMINISTRATION)
(2013-2015)
Submitted by:
Inderjeet Kaur
MBA 3 rd Sem
UI : !3"#$"!"%
BABA FARID COLLEGE, DEON (BATHINDA)
!
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DECLARATION
(Re !"#$ !%e #&n! '" !& !"&n )
I de&lare that the summer training proje&t report
submitted to my &ollege BABA 'A(I
)*++A,-. In partial fulfillment for the degree of ba&helor
of business administration on
/ Study on Marketing Strategies Related to Mutual Fund at Karvy
stockStudy on Marketing Strategies Related to Mutual Fund at Karvy
stockbroking ltd.broking ltd.
KA(012 is a result of my o n or4 under &ontinuous
guidan&e and 4ind &o5operation
of our &ollege fa&ulty member. I ha6e not submitted this
training report to any other
uni6ersity for the a ard of degree.
I7 -(8--T KAU(
MBA 3 rd S-M
UI : !3"#$"!"%
"
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AC*NO+LEDGEMENT
I ha6e prepared this proje&t ith the help of the many
persons or4ing in
the organi9ation. I &olle&ted primary data from the
personnel department but se&ondary
and supporting data as pro6ided by many others. A proje&t
or4 is ne6er the or4 of a
one person rather it is a &ombination of ideas; suggestions;
6ie s < &ontribution
in6ol6ing 6arious fol4s.
I ant to than4 se6eral people for their professional
assistan&e. They de6oted their
pre&ious time and rendered generous support for my
resear&h and riting. I also ant to
than4 all the person of the personnel department ho ga6e their
full support in
&ompleting my proje&t. All the persons mentioned abo6e
not only helped me but also
pro6ided guidan&e for &ompleting the proje&t by
their 6ast e=perien&e and professional
attitude
3
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TABLE OF CONTENTS
A'' e "e ."!e /! e "# /n
S n& CONTENT PAGE
NO1 ->-)UTI0- SUMMA(1 #2 )?A@T-( !
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E7ECUTI8E SUMMAR9( %$ %/ en:! ;en!"&ne' ; ! /. # n')
The &ommen&ement of -5Trading and emat has transformed
the &apital mar4et in India.
Gith the help of emat and Trading a&&ount; buying and
selling of shares has be&ome a
mu&h faster and e6en pro&ess than trading ith the
assistan&e of physi&al bro4er. It
pro6ides for the assimilation of ban4; bro4er; sto&4
e=&hange and epository
@arti&ipants. This helps to get rid of the painsta4ing
pro&edure of in6esting in sto&4
e=&hange. Today; if one ants to in6est in sto&4 mar4et;
he has to &onta&t a bro4er on
phone or meet him personally to pla&e order. A bro4er
generally gi6es su&h importan&e
and additional ser6i&e only to high net orth &ustomers.
But the introdu&tion of internet
trading; e6en a &ommon or a small in6estor gets an
opportunity to a6ail the ser6i&e at an
affordable pri&e hi&h is mu&h lesser than hat is
&harged by a physi&al bro4er o6er the
phone. *nline trading has gi6en &ustomer a real time
a&&ess to a&&ount information; sto&4
quotes elaborated mar4et resear&h and intera&ti6e
trading. The prerequisites of internet
trading are a &omputer; a modem and a telephone
&onne&tion; registration ith bro4er; a
ban4 a&&ount and depository a&&ount. The
introdu&tion of depository ser6i&e is
&onsidered as the beginning of the trading of sto&4s
H&li&4. This means that you &anarrange deli6ery of
s&rips sold anytime; any here to anyone by &li&4 of a
mouse.
emateriali9ation fa&ilities to 4eep the se&urities in
ele&troni& form instead of paper
form. It offers more ad6antageous than the physi&al
&ertifi&ate form. espite the
ad6antages of emateriali9ation; the a areness le6els among the
in6estors relating to
emat a&&ount is not adequate be&ause of numerous
reasons.
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INTRODUCTION TO THE COMPAN9
KA(01 is a premier integrated finan&ial ser6i&es
pro6ider; and ran4ed among the topfi6e in the &ountry in all
its business segments; ser6i&es o6er "C million indi6idual
in6estors in 6arious &apa&ities; and pro6ides in6estor
ser6i&es to o6er 3CC &orporates;
&omprising the ho s ho of )orporate India. KA(01 &o6ers
the entire spe&trum of
finan&ial ser6i&es su&h as Sto&4 bro4ing;
epository @arti&ipants; istribution of
finan&ial produ&ts li4e mutual funds; bonds; fi=ed
deposit; Mer&hant Ban4ing & "!& $ L!'
(NSDL) /n' Cen! /. Se "!"e De>& "!& $ L!' (CSDL) in
!JJ . Kar6y set standards
enabling further &omfort to the in6estor by promoting
paperless trading a&ross the
&ountry and emerged as the !&> 3 De>& "!&
$ P/ !" ">/n! in the &ountry in terms of
&ustomer ser6i&ed.
*ffering a ide trading platform ith a dual membership at both 7S
+ and ) S+; e
are a po erful medium for trading and settlement of
demateriali9ed shares. Ge ha6e
established li6e @Ms; Internet a&&ess to
a&&ounts and an easier transa&tion pro&ess in
order to offer more &on6enien&e to indi6idual and
&orporate in6estors. A team of
professional and the latest te&hnologi&al e=pertise
allo&ated e=&lusi6ely to our demat
di6ision in&luding te&hnologi&al enhan&ements
li4e S@-- 5e; ma4e our response timequi&4 and our deli6ery
impe&&able. A ide national net or4 ma4es our
effi&ien&ies
a&&essible to all.
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UTI MUTUL FUND
UTI MUTU+ 'U7 :
To be the most @referred Mutual 'und.
O ;" "&n " !& ;/?e UTI M ! /. F n'@
P The most trusted brand; admired by all sta4eholders.
P The largest and most effi&ient money manager ith global
presen&e.
P The best in &lass &ustomer ser6i&e pro6ider.
P The most preferred employer.
P The most inno6ati6e and best ealth &reator.
!
http://www.utimf.com/index.htmlhttp://www.utimf.com/index.html
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A e! n'e M/n/ e;en!
UTIAM) presently manages a &orpus of o6er (s. $%;J% )roresQ
as on 3Cth 8une "CCJ
Esour&e: .amfiindia.&om F. UTI Mutual 'und has a
tra&4 re&ord of managing a6ariety of s&hemes
&atering to the needs of e6ery &lass of &iti9ens. It
has a nation ide
net or4 &onsisting !! UTI 'inan&ial )entres EU')sF and
UTI International offi&es in
+ondon; ubai and Bahrain. Gith a 6ie to rea&h to &ommon
in6estors at distri&t le6el;
! satellite offi&e ha6e also been opened.
UTIAM) has a ell5qualified; professional fund management team;
hi&h has been
fully empo ered to manage funds ith greater effi&ien&y
and a&&ountability in the sole
interest of the unit holders. The fund managers are ably
supported by a strong in5house
se&urities resear&h department. To ensure in6estorsL
interests; a ris4 management
department is also in operation.
Re."/="."!$
UTIM' has &onsistently reset and upgraded transparen&y
standards. All the bran&hes;
U')s and registrar offi&es are &onne&ted on a robust
IT net or4 to ensure &ost5effe&ti6e
qui&4 and effi&ient ser6i&e. All these ha6e e6ol6ed
UTIM' to position as a dynami&;
responsi6e; restru&tured; effi&ient and transparent
entity; fully &ompliant ith S-BI
regulations.
!#
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e e" e' =$ UTI M ! /. F n'
UTI M' )7B) A ard "CCJ... more
UTI Mutual 'und s eeps I)(A mutual fund A ard "CCJ...
UTI M' ins the Best ebt 'und ?ouse A ard...
,olden @ea&o&4 Inno6ati6e @rodu&tNSer6i&e A
ard5"CC ...
+oyalty A ards 5 "CCJ...
+ipper 'und A ardsCJ5UTI Mahila Unit5# yrs...
+ipper 'und A ardsCJ5UTI Mahila Unit53 yrs...
(eaderLs igest Trusted Brand "CC ...
+ipper 'und A ards 5 ,ulf "CC ...
Top @erforming Infrastru&ture 'und 5 In&ome...
Brand loyalty A ards "CC ...
'our I)(A % Star ,old A ard...
'our I)(A # Star A ard...
I)(A Mutual 'und A ard "CC%...
+ipper 'und A ards "CC%...
)(ISI+5)7B)5T0! 5Mutual 'und of the year A ard "CC%...
I)(A Mutual 'und A ard "CC$...
+ipper 'und A ards...
)7B) India Mutual 'und of the 1ear A ard...
UTI 7ifty Inde= 'und ins ,old at I)(A *nline...
UTI ynami& -quity 'und ins Sil6er at I)(A *nline...
!$
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In e !;en! P%".& &>%$UTI Mutual 'undLs in6estment
philosophy is to deli6er &onsistent and stable returns in
the medium to long term ith a fairly lo er 6olatility of fund
returns &ompared to the
broad mar4et. It belie6es in ha6ing a balan&ed and
ell5di6ersified portfolio for all the
funds and a rigorous in5house resear&h based approa&h to
all its in6estments. It is
&ommitted to adopt and maintain good fund management
pra&ti&es and a pro&ess based
in6estment management.
UTI Mutual 'und follo s an in6estment approa&h of gi6ing as
equal an importan&e to
asset allo&ation and se&toral allo&ation; as is
gi6en to se&urity sele&tion hile managing
any fund. It &ombines top5do n and bottom5up approa&hes
to enable the
portfoliosNfunds to adapt to different mar4et &onditions so
as to pre6ent missing an
in6estment opportunity.
In terms of its funds performan&e; UTI Mutual 'und aims to
&onsistently remain in the
top quartile 6is5R56is the funds in the peer group.
Mumbai
! st 'eb "CC3
!%
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S>&n &
Three leading publi& se&tor ban4s Ban4 of Baroda; @unjab
7ational Ban4 and State
Ban4 of India and +ife Insuran&e )orporation of India E+I)F;
the largest publi& finan&ial
in6estment institution and life insurer in India are the
sponsors of UTI Mutual 'und.
B/n? B/ &'/@-
Ban4 of Baroda is a &ommer&ial ban4 performing
a&ti6ities in terms of Ban4ing
)ompanies EA&quisition and Transfer of Underta4ings A&t
!J%CF under hi&h the
Underta4ing of the Ban4 as ta4en o6er by the )entral ,o6ernment.
uring the period
sin&e in&eption; it has al ays maintained its
pra&ti&e of sound 6alue based ban4ing to
emerge as one of the premier publi& se&tor Ban4s of the
&ountry today. It has a tra&4re&ord of uninterrupted
profits sin&e in&eption in !JC . The finan&ial strength
of the Ban4
and its long tradition of effi&ient &ustomer ser6i&e
are dra n substantially from the
e=tensi6e rea&h of its "%3" strong bran&h net or4 Eas of
3!.C3."CC%F &o6ering almost
e6ery State and Union Territory in the )ountry. The Ban4 is also
one of the fe Indian
Ban4s ith a formidable presen&e o6erseas ith C bran&hes.
Thus; the total bran&h
net or4 is ";%%" as at 3!.C3."CC%.
L"#e In /n e C& >& /!"&n In'"/
+ife Insuran&e )orporation of India E+I)F is amongst the
largest insuran&e &ompanies in
the orld; ith "C bran&hes and ha6ing a 'und si9e of
(s.5#;$C; C$.33 &rore.
P n /= N/!"&n/. B/n?
@unjab 7ational Ban4 is a &ommer&ial ban4 performing
a&ti6ities in terms of Ban4ing
)ompanies EA&quisition and Transfer of Underta4ings A&t
!J%CF under hi&h the
Underta4ing of the Ban4 as ta4en o6er by the )entral ,o6ernment.
The main obje&t of
the ban4 under the said A&t is as belo :5 An a&t to
pro6ide for the a&quisition and transfer
of the underta4ing of &ertain ban4ing &ompanies; ha6ing
regard to their si9e; resour&es
&o6erage and organisation; in order to further to
&ontrol the heights of the e&onomy; to
meet progressi6ely and ser6e better; the needs of the
de6elopment of the e&onomy and to
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promote the elfare of the people; in &onformity ith the
poli&y of the State to ards
se&uring the prin&iples laid do n in &lause EbF and
E&F of Arti&le 3J of the )onstitution of
India and for matter &onne&ted there ith or
in&idental therein. As on 3!.C3."CC% @unjab
7ational Ban4 has #3J domesti& offi&es in&luding "!
e=tension &ounters; " subsidiaries
and a deposit si9e of (s.!; 3J; $C &rores.
S!/!e B/n? In'"/@
The State Ban4 of India is the largest publi& se&tor
ban4 in India ith J#!% bran&hes in
India and 3 offi&es in 3" &ountries orld ide. In
addition to this; SBI also has "!
subsidiaries.
The sponsors are not responsible nor liable for any loss
resulting from the operation ofthe s&heme beyond the
&ontribution of an amount of (s.!C;CCCN5 made by them to
ards
setting up of the Mutual 'und.
!J
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UTI Asset Management )o. +td. EUTIAM)F is a &ompany
in&orporated under The
)ompanies A&t; !J#$.
The paid up &apital of UTIAM) has been subs&ribed
equally by four sponsors: State Ban4 of
India; +ife Insuran&e )orporation of India; Ban4 of Baroda
and @unjab 7ational Ban4.
UTIAM); apart from managing the s&hemes of UTI Mutual 'und;
also manages the s&hemes
transferredNmigrated from the erst hile Unit Trust of India; in
a&&ordan&e ith the pro6isions
of the In6estment Management Agreement; the Trust eed; the S-BI
EMutual 'undsF
(egulations and the obje&ti6es of the s&hemes.
UTIAM) has also entered into a ser6i&e agreement ith the
Administrator of the Spe&ified
Underta4ing of the Unit Trust of India ESUUTIF to pro6ide them
ith ba&4 offi&e support for
S = "'"/ "e
UTI (etirement Solutions +td. EUTI(S+F; is a !CC subsidiary of
UTIAM) hi&h as
in&orporated in e&ember; "CC% and started operations
.e.f. Mar&h; "CC . UTI(S+ has been
set up to &arry out the operations as a @ension 'und Manager
under the 7e @ension
System set up by @ension 'und (egulatory and e6elopment
Authority E@'( AF.
UTI(S+ as initially appointed by the 7@S to manage the pension
funds of the go6ernment
employees. In Mar&h; "CCJ; the )ompany has also been
appointed by 7@S for management
of pension funds for non5go6ernment employees.
"C
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RELIANCE MUTUAL FUND
(elian&e Mutual 'und E(M'F is one of IndiaLs leading Mutual
'unds; ith Assets Under Management EAUMF of (s. J3;#3" &rore
EAUM as on "Jth 'eb C F and an in6estor base
of o6er $#.%3 +a4hs. (elian&e Mutual 'und; a part of the
(elian&e 5 Anil hirubhai
Ambani ,roup; is one of the fastest gro ing mutual funds in the
&ountry. (M' offers
in6estors a ell5rounded portfolio of produ&ts to meet
6arying in6estor requirements and
has presen&e in !!# &ities a&ross the &ountry.
(elian&e Mutual 'und &onstantly endea6ors
to laun&h inno6ati6e produ&ts and &ustomer
ser6i&e initiati6es to in&rease 6alue to
in6estors. (elian&e Mutual 'und s&hemes are managed by
(elian&e )apital Asset
Management +imited.; a subsidiary of (elian&e )apital
+imited; hi&h holds J3.3% of
the paid5up &apital of ()AM; the balan&e paid up
&apital being held by minority
shareholders. (elian&e )apital +td. is one of IndiaLs
leading and fastest gro ing pri6ate
se&tor finan&ial ser6i&es &ompanies; and ran4s
among the top 3 pri6ate se&tor finan&ial
ser6i&es and ban4ing &ompanies; in terms of net orth.
(elian&e )apital +td. has interests
in asset management; life and general insuran&e; pri6ate
equity and proprietary
in6estments; sto&4 bro4ing and other finan&ial
ser6i&es.
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ICICI PRU MUTUL FUND
I)I)I @rudential mutual fund is a joint 6enture bet een I)I)I
Ban4; a premier finan&ial
po erhouse; and prudential pl&; a leading international
finan&ial ser6i&es groupheadquartered in the United
Kingdom. I)I)I @rudential as amongst the first pri6ate
se&tor insuran&e &ompanies to begin operations in
e&ember "CCC after re&ei6ing
appro6al from Insuran&e (egulatory e6elopment Authority EI(
AF.
I)I)I @rudential s &apital base stands at (s. "C."$ billion
ith I)I)I Ban4 and @rudential
pl& holding % and "$ sta4e respe&ti6ely. 'or the past
fi6e years; I)I)I
@rudential has retained its position as the 7o. ! pri6ate life
insuran&e in the &ountry;
ith the ide range of fle=ible produ&ts that meet the needs
of the Indian &ustomer ate6ery step in life. In the first
quarter of finan&ial year "CC$5C% e ha6e &ross the ne
milestone of insuring the li6es of more than ".# million
poli&e holders. Today our
nation5 ide team &omprises of o6er # C offi&es; o6er "3
CCC ad6isors and "" ban4
assuran&e partners.
This rating is determined after a thorough e6olution of
&ompanyLs finan&ial pro&esses;
ris4 management frame or4; produ&t mi=; mar4et share;
et&. *6er the past fi6e years
"3
http://images.google.co.in/imgres?imgurl=http://www.icicipruamc.com/stat/img/headerfooter/header.gif&imgrefurl=http://www.icicipruamc.com/asp/amc/contactus/body.asp%3Fbranch%3DBangalore%2520(Malleshwaram)&usg=__3CPKRqFQAcKWb8pWxLO5ihzo8No=&h=112&w=331&sz=8&hl=en&start=12&um=1&tbnid=aGsRSm4VRFdSYM:&tbnh=40&tbnw=119&prev=/images%3Fq%3Dicici%2Bpru%2Bmutul%2Bfund%26hl%3Den%26rlz%3D1G1GGLQ_ENIN334%26sa%3DG%26um%3D1
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INTRODUCTION TO PROJECT
MUTUAL FUND
A Mutual 'und is a body &orporate registered ith S-BI
ESe&urities -=&hange Board of
IndiaF that pools money from indi6idualsN&orporate in6estors
and in6ests the same in a
6ariety of different finan&ial instruments or se&urities
su&h as equity shares; ,o6ernment
se&urities; Bonds; debentures et&. Mutual funds &an
thus be &onsidered as finan&ial
intermediaries in the in6estment business that &olle&t
funds from the publi& and in6est on
behalf of the in6estors. Mutual funds issue units to the
in6estors. The appre&iation of the
portfolio or se&urities in hi&h the mutual fund has
in6ested the money leads to an
appre&iation in the 6alue of the units held by in6estors.
The in6estment obje&ti6es outlined
by a Mutual 'und in its prospe&tus are binding on the Mutual
'und s&heme. The
in6estment obje&ti6es spe&ify the &lass of
se&urities a Mutual 'und &an in6est in. Mutual
'unds in6est in 6arious asset &lasses li4e equity; bonds;
debentures; &ommer&ial paper and
go6ernment se&urities. The s&hemes offered by mutual
funds 6ary from fund to fund. Some
are pure equity s&hemes others are a mi= of equity and
bonds. In6estors are also gi6en the
option of getting di6idends; hi&h are de&lared
periodi&ally by the mutual fund; or to parti&ipate only in
the &apital appre&iation of the s&heme.
T9PES OF MUTUAL FUNDS
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M ! /. # n' / e ./ "#"e' "n !%e #&..& "n ;/nne @
(/) On !%e =/ " O= e !" e
E "!$ F n' G & !% F n'
'unds that in6est in equity shares are &alled equity funds.
They &arry the prin&ipal
obje&ti6e of &apital appre&iation of the in6estment
o6er the medium to long5term. They
are best suited for in6estors ho are see4ing &apital
appre&iation. There are different
types of equity funds su&h as i6ersified funds; Se&tor
spe&ifi& funds and Inde= based
funds.
D" e "#"e' # n'
These funds in6est in &ompanies spread a&ross
se&tors. These funds are generally meant
for ris45a6erse in6estors ho ant a di6ersified portfolio
a&ross se&tors.
Se !& # n'
These funds in6est primarily in equity shares of &ompanies
in a parti&ular business se&tor
or industry. These funds are targeted at in6estors ho are
bullish or fan&y the prospe&ts of
parti&ular se&tor funds.
T/ S/ "n F n'
These funds offer ta= benefits to in6estors under the In&ome
Ta= A&t. *pportunities
pro6ided under this s&heme are in the form of ta= rebates
under the In&ome Ta= a&t.
De=! In &;e F n'
These funds in6est predominantly in high5rated
fi=ed5in&ome5bearing instruments li4e
bonds; debentures; go6ernment se&urities; &ommer&ial
paper and other money mar4et
"#
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instruments. They are best suited for the medium to long5term
in6estors ho are a6erse to
ris4 and see4 &apital preser6ation. They pro6ide a regular
in&ome to the in6estor.
G".! F n'
These funds in6est in )entral and State ,o6ernment
se&urities. Sin&e they are
,o6ernment ba&4ed bonds they gi6e a se&ured return and
also ensure safety of the
prin&ipal amount. They are best suited for the medium to
long5term in6estors ho are
a6erse to ris4.
=) On !%e =/ " F.e "="."!$
O>en-en'e' F n'
These funds do not ha6e a fi=ed date of redemption. ,enerally
they are open for
subs&ription and redemption throughout the year. Their
pri&es are lin4ed to the daily net
asset 6alue E7A0F. 'rom the in6estors perspe&ti6e; they are
mu&h more liquid than
&losed5ended funds.
C.& e-en'e' F n'
These funds are open initially for entry during the Initial
@ubli& *ffering EI@*F and
thereafter &losed for entry as ell as e=it. These funds ha6e
a fi=ed date of redemption.
*ne of the &hara&teristi&s of the &lose5ended
s&hemes is that they are generally traded at a
dis&ount to 7A0 but the dis&ount narro s as maturity
nears. These funds are open for
subs&ription only on&e and &an be redeemed only on
the fi=ed date of redemption. The
units of these funds are listed on sto&4 e=&hanges E ith
&ertain e=&eptionsF; are tradable
and the subs&ribers to the fund ould be able to e=it from
the fund at any time through
the se&ondary mar4et.
D"##e en! "n e !;en! >./n !%/! M ! /. F n' #e
The term Lin6estment plansL generally refers to the ser6i&es
that the funds pro6ide to
in6estors offering different ays to in6est or rein6est.The
different in6estment plans are
"$
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an important &onsideration in the in6estment de&ision;
be&ause they determine the
fle=ibility a6ailable to the in6estor. Some of the in6estment
plans offered by mutual funds
in India are:
G & !% P./n /n' D" "'en' P./n
A gro th plan is a plan under a s&heme herein the returns
from in6estments are
rein6ested and 6ery fe in&ome distributions; if any; are
made. The in6estor thus only
reali9es &apital appre&iation on the in6estment. Under
the di6idend plan; in&ome is
distributed from time to time. This plan is ideal to those
in6estors requiring regular
in&ome.
A >e SEBI Re ./!"&n &n M ! /. F n' , /n "n e !& "
en!"!.e' !&@
!. (e&ei6e Unit &ertifi&ates or statements of
a&&ounts &onfirming your title ithin $
ee4s from the date your request for a unit &ertifi&ate
is re&ei6ed by the Mutual 'und.
". (e&ei6e information about the in6estment poli&ies;
in6estment obje&ti6es; finan&ial
position and general affairs of the s&heme.
3. (e&ei6e di6idend ithin " days of their de&laration
and re&ei6e the redemption or
repur&hase pro&eeds ithin !C days from the date of
redemption or repur&hase.
. The trustees shall be bound to ma4e su&h dis&losures
to the unit holders as are essential
in order to 4eep them informed about any information; hi&h
may ha6e an ad6erse
bearing on their in6estments.
#. %# of the unit holders ith the prior appro6al of S-BI &an
terminate the AM) of the
fund.
AD8ANTAGES OF MUTUL FUND
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Mutua . 'unds offer se6eral benefits to an in6estor that
unmat&hed by the other
in6estment options. The major benefits are good post5ta= returns
and reasonable safety;
the other benefits in in6esting in Mutual 'unds are
PROFESSIONAL MANAGEMENT@
Mutual 'unds employ the ser6i&es of e=perien&ed and
s4illed professionals and dedi&ated
in6estment resear&h team. The hole team analyses the
performan&e and balan&e sheet of
&ompanies and sele&ts them to a&hie6e the
obje&ti6es of the s&heme.
POTENTIAL RETURN@
Mutual 'unds ha6e the potential to pro6ide a higher return to an
in6estor than any
other option o6er a reasonable period of time.
DI8ERSIFICATION@
Mutual 'unds in6est in a number of &ompanies a&ross a
ide &ross se&tion of industries
and se&tors.
LI UIDIT9@
The in6estor &an get the money promptly at the net asset
6alue related pri&es from theMutual 'unds open5ended
s&hemes. In &lose5ended s&hemes; the units &an be
sold on a
sto&4 e=&hange at the pre6ailing mar4et pri&e.
TRANSPARENC9@
Mutual 'unds ha6e to dis&lose their holdings; in6estment
pattern and the ne&essary
information before all in6estors under a regulation frame
or4.
FLE7IBILIT9@
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In6estment in Mutual 'unds offers a lot of fle=ibility ith
features of s&hemes su&h as
regular in6estment plan; regular ithdra al plans and di6idend
rein6estment plans
enabling systemati& in6estment or ithdra al of funds.
+ELL REGULATED@
All Mutual 'unds are registered ith S-BI; and S-BI a&ts a
at&hdog; so the Mutual
'unds are ell regulated
DISAD8ANTAGES OF MUTUAL FUNDS
FLUCTUATING RETURNS@
Mutual funds are li4e many other in6estments ithout a guaranteed
return. There is
al ays the possibility that the 6alue of your mutual fund ill
depre&iate. Unli4e fi=ed5
in&ome produ&ts; su&h as bonds and Treasury bills;
mutual funds e=perien&e pri&e
flu&tuations along ith the sto&4s that ma4e up the
fund.
DI8ERSIFICATION@
Although di6ersifi&ation is one of the 4eys to
su&&essful in6esting; many mutual fund
in6estors tend to o6er di6ersify. The idea of
di6ersifi&ation is to redu&e the ris4s
asso&iated ith holding a single se&urity o6er
di6ersifi&ation Ealso 4no n as
di orsifi&ation F o&&urs hen in6estors a&quire
many funds that are highly related and so
don t get the ris4 redu&ing benefits of
di6ersifi&ation.
CASH, CASH AND MORE CASH@
"J
http://www.investopedia.com/terms/d/diversification.asphttp://www.investopedia.com/terms/d/diworsification.asphttp://www.investopedia.com/terms/d/diversification.asphttp://www.investopedia.com/terms/d/diworsification.asp
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Mutual funds pool money from thousands of in6estors; so e6eryday
in6estors are putting
money into the fund as ell as ithdra ing in6estments. To
maintain liquidity and the
&apa&ity to a&&ommodate ithdra als; funds
typi&ally ha6e to 4eep a large portion of
their portfolio as &ash. ?a6ing ample &ash is great for
liquidity; but money sitting around
as &ash is not or4ing for you and thus is not 6ery
ad6antageous.
COSTS@
In mutual funds the fees are &lassified into t o
&ategories: shareholder fees and annual
fund5operating fees.
The shareholder fees; in the forms of loads and redemption fees
are paid dire&tly by
shareholders pur&hasing or selling the funds. The annual
fund operating fees are &harged
as an annual per&entage 5 usually ranging from !53 . These
fees are assessed to mutualfund in6estors regardless of the
performan&e of the fund. Ghen the fund doesn t ma4e
money these fees only magnify losses.
MISLEADING AD8ERTISEMENTS@
The misleading ad6ertisements of different funds &an guide
in6estors do n the rong
path. Some funds may be in&orre&tly labeled as gro th
funds; hile others are &lassified
as small5&ap or in&ome.
E8ALUATING FUNDS@
Another disad6antage of mutual funds is the diffi&ulty they
pose for in6estors interested
in resear&hing and e6aluating the different funds. Unli4e
sto&4s; mutual funds do not
offer in6estors the opportunity to &ompare the @N- ratio;
sales gro th; earnings per share;
et&.
3C
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TA7 ASPECT OF MUTUAL FUND
DI8IDEND MADE TA7-FREE
i6idend re&ei6ed from a domesti& &ompany and
in&ome distributed by UTI5I or any M';
to its unit holders has been made ta=5free from !. .C3 on ards.
?o e6er; di6idend
de&lared; distributed or paid by su&h sour&es shall
be &harged a distribution ta= of
H!$.JJ# flat. This distribution ta= is in addition to the normal
in&ome ta= payable by
them.
CAPITAL GAIN TA7@
)apital gains are generated through the sale of sto&4s;
bonds and other in6estments;
hi&h ha6e appre&iated in 6alue; from the fundLs
portfolio. There are no &apital grain ta=
on M' and sto&4 mar4et. Ghile ST), are subje&t to Ta=H!C
e6en traded through
sto&4 e=&hange and se&urity from sto&4
e=&hange and se&urity from a&tion ta= has been
paid. Unquated sharesN M' are subje&t to ta= at normal rate
of ta=.
3!
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INCOME RECEI8ED FROM MUTUAL FUND@
The Internal (e6enue Ser6i&e might depend upon the nature of
your mutual fund
in6estment. ,enerally; most in&ome generated from a mutual
fund a&&ount; ith the
e=&eption of ta=5e=empt money mar4et or muni&ipal bond
funds; is subje&t to federal
ta=es as ordinary in&ome or &apital gains
+EALTH TA7@
Under se& "E!FEeF of Gealth ta= A&t it is not treated as
an asset. Therefore this is
e=empted from ta= liability.
GIFT TA7@
Mutual 'und may be gi6en as a gift and no ta= is appli&able
by doner or donee
TDS ON REDEMPTION@
7o T S is required to be dedu&ted from &apital gain at
the time of redemption in &ase of
mutual fund.
TA7 BENEFITS ON IN8ESTMENT IN MUTUAL FUND@E!F !CC In&ome Ta=
-=emption on all Mutual 'und di6idends.
E"F )apital ,ains ta= to be lo er of
!C on the &apital gains ithout fa&toring inde=ation
benefits and
"C on the &apital gains after fa&toring inde=ation
benefits.
E3F *pen5end funds ith equity e=posure of more than #C are
e=empt of di6idend ta=
for a period of 3 years from !JJJ5"CCC.
3"
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MUTUAL FUNDS IN INDIA
33
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CHAPTER 2OBEJECTI8 ES TO STUD9
3
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OBJECTI8E OF THE STUD9
The spe&ifi& obje&ti6e &an be enumerated as
follo ing5
!. To study the mar4eting strategies related to Mutual 'und at
Kar6y Sto&4 Bro4ing
+td.
". T& /n/.$ e !%e en! trends of Mutual 'unds in the Indian
Mar4et.
3#
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CHAPTER 3
RESEARCH METHODOLOG9
LIMITATIONS
3$
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RESEARCH METHODOLOG9
Re e/ % De " n@
The sample as sele&ted of them ho are the
&ustomersN6isitors of Kar6y Sto&4 Bro4ing
+td; Mall (oad Bathinda; irrespe&ti6e of them being
in6estors of not or a6ailing the
ser6i&es of not. It as also &olle&ted through
personal 6isits to persons; by formal and
informal tal4s and through filling up the questionnaire
prepared. The data has been
analy9ed by using mathemati&alNStatisti&al tool.
De ">!" e Re e/ % : It is that type of resear&h hi&h
&an e=plain hat had
happened and hat is happening
D/!/ C&..e !"&n
P ";/ $ D/!/
@rimary data are those; hi&h are &olle&ted a fresh
and for the first time; and thus happen
to be original in &hara&ter. It is the ba&4bone of
any study. In this proje&t; ata is
&olle&ted through a questionnaire.
Se &n'/ $ D/!/
Se&ondary data are those hi&h ha6e already been
&olle&ted by someone else and hi&h
ha6e already been passed through the statisti&al
pro&ess. Se&ondary sour&es are boo4s;
internet; maga9ines et&.
3%
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S/;>."n De " n
ata has been presented ith the help of bar graph; pi&ture
&harts; line graph et&.
S/;>."n Un"!@ Bathinda
S/;>."n S" e : The sample of my proje&t is limited to !CC
people only. *ut of hi&h
only %# people had in6ested in Mutual 'und. *ther "# people did
not ha6e in6ested in
Mutual 'und.V?o u 4ne this in starting
LIMITATIONS OF THE STUD9 +ead pro6ided me as not
suffi&ient.
ue to pau&ity of time; sample si9e limited up to !"CEit as
!CC in last para F
respondents only.
Most of the in6estors did not respond ell < might ha6e
replied in&orre&tly.
it as diffi&ult to fi= appointment ith &lients due to
their tight s&hedule.
The reliability of data &olle&ted and analy9ed depends
upon the sour&es of data.
Some in6estors did not ant to re6eals fa&t figures of their
earnings and
in6estment.
The lead pro6ided me as limited to Bathinda only. It as not
enough for my
summer training Topi&.
3
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1 +%" % In &;e = / ?e! =e ! 'e "=e $& /nn /. "n
&;e
In &;e (R "n ./?%) N& Re >&n'en!Up to *ne %! to
".# 3C".# to # #W# !T&!/. 100
De ">!"&n@
Majority of the in6estors &omes under the in&ome ".# to
# la4h.
About ! respondents &ome under the in&ome more than #
la4h.
+east % respondents &ome under the in&ome up to !
la4h.
C
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2 H& ; % !&!/. "ne!;en! '& $& "n e! "n ; ! /. #
n'
In e !;en! ("n ) N ;=e e >&n'en!X!C 3$
!C5"C 3!"C5 C "3W C !CT&!/. 100
De ">!"&n@
3$ of the respondents in6est less than !C in mutual fund out of
their total
in6estment &ompare to 3! ho in6est their !C5"C E@ut here6er
requiredF of
their total in6estment.
"3 respondents in6est "C5 C of their total in6estment here as
respondent
greater than C in6est of their total in6estment in mutual
fund.
!
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+%"% !%e #&..&"n !$>e M!/. Fn' '& $& "ne !
"n
T$>e M ! /. F n' N ;=e e >&n'en!*pen -nded 3J)lose
-nded !CBoth #!T&!/. 100
De ">!"&n@
*pen ended s&hemes &onstitute 3J of the total
respondents. Ghere as only !C
&onstitute &lose ended s&hemes.Both open ended and
&lose ended &onstitute about half of the respondent
E#!F.
3
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5 +%/! " $& >e#eene "ne!;en! /;&n !%e #&..&"n
%e;e
S %e;e N ;=e e >&n'en!-quity !ebt !JSe&toral "J*thers
!!T&!/. 100
De ">!"&n@
-quity s&hemes are the most preferred E !F; then
se&toral s&hemes E"JF.
ebt s&hemes &onstitute !J and others &onstitute only
!!.
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+%"% !%e #&..& "n &;>/n$: (M ! /. F n') '"'
$& ;/?e ;/ "; ;
"n e !;en! "n
C&;>/n"e N ;=e Re >&n'en!(elian&e "
I)I)I @rudential C$+I) 3$Kar6y "!*thers !3T&!/. 100
De ">!"&n@
(elian&e mutual fund is idely e=pe&ted Ese&ond
positionC just sfter +I) hi&h
&onstitute 3$ of the respondents. Kar6y on 3 rd E"!F.
I)I)I @rudential is least popular Eonly $F.
*thers mutual funds &onstitute !3 of the respondents .
#
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4 D& $& !%"n? !%/! !%e >e#&;/ne M ! /. F n'
C&;>/n$ e##e! !%e "!e"/
Ine!;en!
O>"n"&n N ;=e Re >&n'en!1es C
7o !")anLt Say CT&!/. 100
De ">!"&n@
Ma=imum of the respondents E CF thin4 that the performan&e
of Mutual 'und)ompany effe&t the &riteria of in6estment
hereas !" donLt belie6e so.
are unable to say anything.
$
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6 D& $& !%"n? !%/! ;/n'/!& $ >e ;/nen! / & n!
n ;=e (PAN) e##e ! !%e
"n e !;en!
O>"n"&n N ;=e e >&n'en!1es %%
7o !)anLt Say C#T&!/. 100
De ">!"&n@
%% of the respondents thin4 that mandatory @A7 effe&t the
in6estment. *n the other hand;! donLt belie6e so.
# are unable to say anything.
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10 D& $& !%"n? !%/! M ! /. F n' In e !;en! " P
"!/=.e
O>"n"&n N ;=e e >&n'en!1es %#
7o "#
De ">!"&n@
%# of the respondent says yes mutual 'und In6estment is
profitable
"# says no
J
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CHAPTER 5 FINDINGS
#C
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FINDINGS
!F Majority of the respondent e met ere Male in the age group of
3C5 C yrs.
"F More than $# of the in6estor in6est only about "C E@ut F of
their total in6estment
in Mutual fund.
3F Majority of in6estors ha6e in6ested in +I) E ho u 4no this F;
as perhaps itLs
oldest and reliable trust.
F Amongst the pri6ate player; Kar6y Mutual fund is rapidly
be&oming popular
among in6estors.
#F @eople in6est in Mutual 'und @rimarily for &apital gro th
and se&ondarily for ta=
benefits l iquidity.$F Majority of the in6estors opt for equity
s&hemes.
%F *pen ended s&hemes ha6e more preferen&e to &lose
ended s&hemes
F Add more findings
#!
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RECOMMENDATIONS AND CONCLUSION
!F There is a large s&ope of Mutual 'unds to in6est in
espe&ially in suburban area.
"F There is need to ha6e more promotional a&ti6ities from
the 6ery grass root le6el
su&h as installing &anopy; ad6ertising through print
< ele&troni& med i&.
3F @eople in6est their sa6ings in a trust not in a &ompany.
So in6estors trust should be
maintained and de6eloped by deli6ering best ser6i&es and
after safe ser6i&es; 6alue
added ser6i&es and after sale ser6i&es.
F The obje&ti6e of the in6estment for mutual fund should be
&apital gro th and fund
should be in6ested in equities.#F -quity s&hemes of Mutual
'und are the most preferred amongst in6estors as they
gi6e high returns o6er the other s&hemes.
$F *pen ended s&heme is highly preferred amongst
&ustomers as there may be reasons
for redemption of unit at any period of time.
%F @erforman&e of mutual should be fo&used on by
pro6iding ne&essary fa&ts figures;
a ard < other a&hie6ement of the trust.
F In6estors got their e=pe&ted returns from the in6estment
they ha6e ma4e already
and thus it iden the s&ope of in6estment further.
+%e e " &n . "&n
#3
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UESTIONNAIRE
1 +%" % In &;e = / ?e! =e ! 'e "=e $& /nn /. "n
&;e
In &;e (R "n ./?%)Up to *ne! to ".#".# to #W#
2 H& ; % !&!/. "ne!;en! '& $& "n e! "n ; ! /. #
n'
In e !;en! ("n )X!C!C5"C"C5 CW C
3 +%/! " !%e P ";/ $ &= e !" e $& "n e !;en!
O= e !" eTa= benefits)apital
appre&iationi6idend+iquidity
+%"% !%e #&..&"n !$>e M!/. Fn' '& $& "ne !
"n
T$>e M ! /. F n'*pen -nded)lose -ndedBoth5 +%/! " $&
>e#eene "ne!;en! /;&n !%e #&..&"n %e;e
S %e;e-quityebtSe&toral*thers
+%"% !%e #&..&"n AMC:S (M ! /. F n') '"' $& ;/?e ;/
"; ;
"n e !;en! "n
#
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AMC:S (M ! /. F n')(elian&eI)I)I @rudential+I)Kar6y
*thers
4 D& $& !%"n? !%/! !%e >e#&;/ne AMC e##e! !%e
"!e"/ Ine!;en!
O>"n"&n1es
7o)anLt Say
A e $& /!" #$ "!% !%e e! n & $& > e en! "n e
!;en!
?ighly SatisfiedSatisfiedUnsatisfied?ighly Unsatisfied
6 D& $& !%"n? !%/! ;/n'/!& $ >e ;/nen! / & n!
n ;=e (PAN) e##e ! !%e
"n e !;en!
1es 7o)anLt Say10D& $& !%"n? !%/! M ! /. F n' In e !;en!
" P "!/=.e
##
O>"n"&n N ;=e e >&n'en!1es %#
7o "#
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BIBLIOGRAPH9
#$
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BIBLIOGRAPH9
(A'' '/!e /n' '/!e ,> n& ne >/>e )
.google.&om
.4ar6y.&om
.relian&emutualfund.&om
.mutualfundofinsa.&om
7-GS @A@-( E-)*7*MI) TIM-S; BUSI7-SS G*(+ ; TIM-S *' I7 IAF
#%
http://www.reliancemutualfund.com/http://www.mutualfundofinsa.com/http://www.reliancemutualfund.com/http://www.mutualfundofinsa.com/
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