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Findings

The following are the findings emerged from the present study entitled “An

Overview of Mutual Fund Industry in India – A Study with reference to Kotak Open-Ended Balanced Fund”.

1. The Investment Objective of KOTAK is to achieve growth by investing in equity &

equity related instruments, balanced with income generation by investing in debt &

money market instruments.

2. Investment Horizon of KOTAK is in between 1to 3 years with a Minimum Initial

Investment of Rs.5,000/-

3. Dividend Payout & Dividend Re-Investment are Investment Options of KOTAK 

OPEN-ENDED BALANCED FUND. Payout Schedule is Transaction day + 3 working

days.

4. Frenquency of Dividend is Half Yearly either on 25th Mar/Sep.

5. The Entry Load of the Fund is Nil where as the Exit Load varies from the TimeHorizon of the Fund and the Exit Load is as follows:

1. For redemptions / switch outs within 1 year from the date of allotment of 

units, irrespective of the amount of investment: 1%

2. For redemption in case of SIP/STP within 2 years from the date of allotment of 

units, irrespective of the amount of investment: 1%

3. Where an investment is made by Fund of Funds as defined under SEBI

Regulations: Nil%

4. Where units are allotted upon Reinvestment of Dividends: Nil

6. Estimated Recurring Expenses are expected to be2.50%

7. Minimum Redemption Size is Rs. 1000/- or 100 units. If the holding is less than

Rs. 1000 or 100 units, the entire balance will be redeemed as and when redemption

request is received from the investor.

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8. The debt portion of the KOTAK OPEN ENDED BALANCED GROWTH Fund is in

  between 30% to 35%. It can help to reduce the volatility. The debt portion while

 providing income yield also offers potential capital appreciation with a falling interest

rates scenario.

9. SIP/STP is the preferred way of investing although at current levels an investor can

invest in lumpsum with a horizon of 18-24 months.

Suggestions & Recommendations

RECOMMENDATIONS

This study on “An Overview of Mutual Fund Industry in India – A Study with

reference to Kotak Open-Ended Balanced Fund”.

1 - 9

.

SUGGESTIONS

Some of the suggestions made from the present study “An Overview of Mutual

Fund Industry in India – A Study with reference to Kotak Open-Ended Balanced Fund”.

are

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Conclusion

Massive de-leveraging and credit crunch driven by the US and spreading to

Europe has led to widespread selling across asset classes including equities with bigger selling in commodities & real estate. The selling has been aggravated by redemption

 pressures driven by the fear about economic slowdown and collateral damages seen

elsewhere. Globally we have witnessed an increased policy response by various central

 banks and governments with aim of providing stability to financial markets; notably the

credit market and improve the business environment and sustain economic momentum.

Closer home, we believe that Indian economy is largely driven by domestic consumption

(67% of GDP) and infrastructure creation and is expected to be more resilient than other 

emerging economies. The economy is expected to do well over medium to long-term as

Government & RBI has stepped in with policy response on fiscal and monetary front

respectively. In the last quarter we have seen possibly biggest monetary easing in Indian

history. The macro economic environment & the growth would be supported by declining

commodity prices and peaking out of interest rates would further help on demand. We

maintain that it is reasonable to expect India's growth to sustain over a longer period.

Equity market valuations have compressed significantly and present a very attractive

investment opportunity and equity as an asset class will continue to give better returns

than any other asset class in the medium to longer term.

Bibliography:

Books

L.M.Bhole., Financial Institutions and Markets, Tata McGrawhill,2009.

M.Y.Khan.,

Mutual Funds, ICFAI Publications, 2009.

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URL:

• www.sebi.org

• www.amfi.com

• www.investopedia.com

• www.mutualfundsindia.com

• www.amfi.com

• www.kotakmutual.com

• www.moneycontrol.com

• www.moneypore.com

•

www.stockholdings.com• www.bseindia.com