A PROJECT REPORT ON ANALYSIS OF MUTUAL FUNDS IN INDIA

SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT ( P.G.D.M) (A.I.C.T.E) APPROVED

SESSION 2006 - 2008

SUBMITTED BY:

UNDER THE GUIDANCE OF:

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL

INDEX
CONTENTS
CHAPTER-1 INTRODUCTION TO THE TOPIC -MEANING OF MUTUAL FUND -HISTORY OF INDIAN MUTUAL FUND -OBJECTIVE OF THE STUDY -RESEARCH METHODOLOGY

PAGE NO.
1 2 7 9 10

CHAPTER-2 11

LITERATURE REVIEW
12 15 19 23 25 29 42 4344 49

-HOW DOES MUTUAL FUND WORK -TYPES OF MUTUAL FUND -ADVATAGES AND DISADVANTAGES OF MUTUAL FUND -RISKS IN MUTUAL FUND CHAPTER-3 MARKET TRENDS CHAPTER-4 MAJOR PLAYERS IN THE MUTUAL FUND INDUSTRY -BANK V/S MUTUAL FUND CHAPTER-5 REGULATORY ASPECT OF A MUTUAL FUND - REGULATORY ASPECTS -THE INTERNET AND THE MUTUAL FUND

CHAPTER-6 ANALYSIS OF QUESTIONNAIRE 46

CHAPTER-7 ANALYSIS OF QUESTIONNAIRE 51

CHAPTER-8 FINDINGS OF THE STUDY 64

CHAPTER-9 LIMITATIONS 68
- LIMITATIONS CHAPTER-10 ANNEXURE BIBLIOGRAPHY 69 70 73

ACKNOWLEDGEMENT
I express my heartiest gratitude to MS. ANANDITA DAS for giving me the opportunity of under going this project. I am grateful to the Library and Computer Center staff for all the help and cooperation extended to us. Last but not the least I would like to thank almighty for his blessings without which virtually this work would not have been possible.

CHAPTER - 1

INTRODUCTION INTRODUCTION

INTRODUCTION What is a Mutual Fund. A Mutual Fund is a trust that collects the savings of a number of investors who share a common financial goal and pools it together to create a larger resource of money. 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 are shared by its unit holders proportionately i.e. on the basis of 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. Anybody with any surplus money that can be invested, even as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy. The team undertakes this in the most professional manner. A mutual fund is thus the ideal investment vehicle for todays complex and modern financial scenario.

Price changes in the assets are driven by global events occurring every day, in-fact every minute in faraway places. It will be very difficult, in-fact next to impossible for an ordinary individual to have the knowledge, skills, inclination and time to keep track of events, understand their implications and act speedily. An individual also finds it difficult to keep track of ownership of his assets, investments, brokerage dues and bank transactions etc. A mutual fund is the answer to all these situations. It appoints professionally qualified and experienced staff that manages each of these functions on a full time basis. The costs of hiring these professionals per investor are very low, as the pool of money invested is large. In effect, the mutual fund vehicle exploits economies of scale in all three areas - research, investments and transaction processing. Globally, there are thousands of firms offering tens of thousands of mutual funds with different investment objectives. Today, mutual funds collectively manage almost as much as or more money as compared to banks. SEBI defines mutual funds as Mutual funds means a fund established in the form of a trust by a sponsor to raise money by the Trustee through the sale of units to the public under one or more schemes for investing in securities in accordance with these regulations. There are 3 entities operating in a mutual fund . They are : 1) An agency which mobilizes savings and gets a commission 2) An investment agency which gets a prescribed rate of commission
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3) A trustee institution, which is normally a Bank which holds the stock of securities of the Mutual fund.

In India the Investment trusts are established under the Companies Act. There are difference between Mutual funds and investment companies which can be as follows:

In terms of objective : In case of mutual funds the mobilization of savings is from the investors, mostly household whereas in case of investment companies it is savings of household , corporate sector. Highest investments belongs to the promoters of the company. In terms of organisation : In case of Mutual funds it is as per SEBI regulations 1993 and in case of UTI as per UTI Act 1963 whereas in case of investment companies it is as per Companies Act 1956 In terms of Capital structure : For Mutual funds initial capital would be provided by the sponsor. Scheme wise capital is decided based on the nature of scheme . Units are offered out of the scheme capital . No debt capital. Whereas, investment companies, on par with industrial companies . No scheme wise capital out of the equity capital. Capital may be debt capital also and has the advantage of gearing. In terms of Liquidity : In Mutual funds it is close ended scheme units are traded on the organized stock exchange . Open ended schemes offer repurchase of facility and some

ended schemes may also offer repurchase or premature encashment. Whereas, in case of investment companies. The company share is traded on stock exchange. No repurchase of shares.

In terms of Name of the schemes Mutual funds Either open ended or close ended with a wide variety of investment objectives whereas in case investment companies it is neither open ended or close ended. Thus we have seen the difference between the mutual funds and the investment companies. Let us now understand the superiority of mutual funds over the other investment options. Mutual funds with the expertise and experienced

management cadre can be able to secure large varieties of high yielding Blue chip securities and show better results to the investing public. Thus Mutual funds are gaining popularity due to the following reasons: The basic purpose of reforms in financial sector was to enhance the generation of domestic resources by reducing dependence on outside funds. This calls for a market based institution. . Mutual funds are best suited for this purpose. Ordinarily investor in the market is not sure of getting share in the normal procedure. Investing in MF by MF companies get firm allotment. And later selling at a higher price. So investing in MF yields higher returns to the investors.
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 Better knowledge of market behavior maximise gains by proper selection and timing of investments. Dividends and capital gains are reinvested automatically in MF and are not frittered away. MF operation provide reasonable protection to investors They create awareness about benefits of investment in capital market and thus able to mop up large amounts Foreign capital inflows are attracted and secures profitable investment avenues abroad for domestic savings through the opening up of off shore funds in various foreign countries. Disbursing funds in various industrial sectors booming trend has led the popularity of MF Risk of loss due to ill informed and misinformed purchase / sale is reduced. Risks are reduced due to diversification of portfolios in terms of companies and industries. They are controlled and regulated by SEBI and considered safe. Thus MF have many advantages even for an individual who wants to put his savings in various places and not only earn high yields but also safe landing later when he wants to acquire the money back. in view of

HISTORY OF THE INDIAN MUTUAL FUND 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. The history of mutual funds in India can be broadly divided into four distinct phases First Phase 1964-87 An Act of Parliament established Unit Trust of India (UTI) on 1963. 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. 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
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(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.

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. 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
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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.

OBJECTIVE OF THE STUDY This project Analysis of Mutual Funds In India has been undertaken by me in order to: To study what kind of mutual funds are there. To find whether the fund gives return or not. To study market trends of the mutual funds.

To know whether people are interested in investing in mutual funds. To know the regulatory framework of the funds.

To find what are the major players in the industry.

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RESEARCH METHODOLOGY This project started meetings different people in order to get information about the mutual funds. Then I thoroughly examined the various activities of mutual funds. Then I visited various websites of the mutual fund to know the recent and upcoming trends of mutual funds. I went forward collecting the data through primary source such as a questionnaire. I prepared the questionnaire. After the collection of the responses, I drew conclusions with respect to the effectiveness of the training program and the value of particular training program in the eyes of trainers and trainees.

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CHAPTER - 2 LITERATURE REVIEW

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HOW DOES MUTUAL FUND WORK The working of Mutual Funds can be briefly stated in the form of the points below: A draft offer document is prepared at the time of

launching the fund. Typically, it pre specifies the investment objectives of the fund, the risk associated, the costs involved in the process and the broad rules for entry into and exit from the fund and other areas of operation. In India, as in most countries, these sponsors need approval from a regulator, SEBI (Securities exchange Board of India) in our case. SEBI looks at track records of the sponsor and its financial strength in granting approval to the fund for commencing operations. A sponsor then hires an asset management company

to invest the funds according to the investment objective.

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It also hires another entity to be the custodian of the

assets of the fund and perhaps a third one to handle registry work for the unit holders (subscribers) of the fund.

In

the

Indian

context,

the

sponsors

promote

the

Asset

Management Company also, in which it holds a majority stake. In many cases a sponsor can hold a 100% stake in the Asset Management Company (AMC). E.g. Birla Global Finance is the sponsor of the Birla Sun Life Asset Management Company Ltd., which has floated different mutual funds schemes and also acts as an asset manager for the funds collected under the schemes.

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ORGANISATION OF A MUTUAL FUND There are many entities involved and the diagram below illustrates the organizational set up of a mutual fund:

Organization of a Mutual Fund

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Types Of Mutual Funds Open-ended Funds An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity. Closed-ended Funds A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. 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. Interval Funds Interval funds combine the features of open-ended and closeended schemes. They are open for sale or redemption during predetermined intervals at NAV related prices.

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Growth Funds The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a majority of their corpus in equities. It has been proven that returns from stocks, have outperformed most other kind of investments held over the long term. Growth schemes are ideal for investors having a long-term outlook seeking growth over a period of time.

Income Funds 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 and Government securities. Income Funds are ideal for capital stability and regular income. Balanced Funds The aim of balanced funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. In a rising stock market, the NAV of these schemes may not normally keep pace, or fall equally when the market falls. These are ideal for investors looking for a combination of income and moderate growth. Money Market Funds The aim of money market funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes may fluctuate depending upon
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the interest rates prevailing in the market. These are ideal for Corporate and individual investors as a means to park their surplus funds for short periods. Load Funds A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or sell units in the fund, a commission will be payable. Typically entry and exit loads range from 1% to 2%. It could be worth paying the load, if the fund has a good performance history. No-Load Funds A No-Load Fund is one that does not charge a commission for entry or exit. That is, no commission is payable on purchase or sale of units in the fund. The advantage of a no load fund is that the entire corpus is put to work. Tax Saving Schemes 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 88 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, provided the capital asset has been sold prior to April 1, 2005-06 and the amount is invested before September 30, 200506.

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Industry Specific Schemes Industry Specific Schemes invest only in the industries specified in the offer document. The investment of these funds is limited to specific industries like InfoTech, FMCG, and Pharmaceuticals etc. Index Schemes Index Funds attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50 Sectoral Schemes Sectoral Funds are those, which invest exclusively in a specified industry or a group of industries or various segments such as 'A' Group shares or initial public offerings.

Systematic Investment Plan (SIP)

Here the investor is given the option of preparing a predetermined number of post-dated cheques in favour of the fund. He will get units on the date of the cheque at the existing NAV. For instance, if on 10th May, he has given a post-dated cheque for August 10th, he will get units on 10th August at existing NAV.

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ADVANTAGES OF MUTUAL FUND Professional Management - The primary advantage of funds (at least theoretically) is the professional management of your money. Investors purchase funds because they do not have the time or the expertise to manage their own portfolio. A mutual fund is a relatively inexpensive way for a small investor to get a fulltime manager to make and monitor investments. Investors are exposed to reduced investment risk due to portfolio diversification, economies of scale in transaction cost and professional management Diversification - By owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is spread out. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. In other words, the more stocks and bonds you own, the less any one of them can hurt you (think about Enron). Large mutual funds typically own hundreds of different stocks in many different industries. It wouldn't be possible for an investor to build this kind of a portfolio with a small amount of money. Small investors can participate in larger basket of securities and share the benefits of efficiently managed portfolio by experts, and are freed from maintaining records of company share certificates, and tracking tax rules. Mutual fund investments are less risky due to portfolio diversification, which is possible mainly due to large

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funds available at their disposal. Small investors can never spread their risks across such a wide portfolio, as can mutual funds.

Freedom from tracking investments Investors do not have to track their investments regularly, as experts who buy and sell securities for them do the tracking. Investors are only required to track the performance of the mutual fund.

Economies of Scale Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than you as an individual would pay. Liquidity Just like an individual stock, a mutual fund allows you to request that your shares be converted into cash at any time. Simplicity Buying a mutual fund is easy! Pretty well any bank has its own line of mutual funds, and the minimum investment is small. Most companies also have automatic purchase plans whereby as little as $100 can be invested on a monthly basis. Freedom from tracking investments Investors do not have to track their investments regularly, as experts who buy and sell securities for them do the tracking. Investors are only required to track the performance of the mutual fund.

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Professional management Professionals run mutual funds, with experience in portfolio management. Analysts the lay investor. Tax benefits Income tax benefits are granted to investors in mutual funds, making it more tax efficient as compared to other comparable investment avenues. employed by mutual funds analyze data and information available in a manner that cannot be matched by

Disadvantages of Mutual Funds Professional Management- Did you notice how we qualified the advantage of professional management with the word "theoretically"? Many investors debate over whether or not the socalled professionals are any better than you or I at picking stocks. Management is by no means infallible, and, even if the fund loses money, the manager still takes his/her cut.

Costs - Mutual funds don't exist solely to make your life easier-all funds are in it for a profit. The mutual fund industry is masterful at burying costs under layers of jargon. These costs are so complicated that in this tutorial we have devoted an entire section to the subject.

Dilution - It's possible to have too much diversification. Because funds have smallholdings in so many different companies, high returns from a few investments often don't make much difference

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on the overall return. Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money.

Taxes - When making decisions about your money, fund managers don't consider your personal tax situation. For example, when a fund manager sells a security, a capital-gain tax is triggered, which affects how profitable the individual is from the sale. It might have been more advantageous for the individual to defer the capital gains liability. No tailor-made Portfolio: Investors who invest on their own can build teir own portfolios shares, bonds and other securities. Investing through funds means he delegates this decision to the fund mangers. High-net-worth individuals or large corporate investors may find this to be a constraint in achieving their objectives. However, most mutual funds help investors overcome this constraint by offering families of schemes-a large number of different schemes within the same fund. In each scheme there are various plans and options. An investor can choose from different investment schemes/plan/options and construct an investment portfolio that meets his investment objectives. Managing a portfolio of funds: Availability of a large number of options from mutual funds can actually mean too much choice for the investor. He may again need advice on how to select a fund to achieve his objectives, quite similar to the situation when he has to select individual shares or bonds to invest in. fortunately, India now has a large number of AMFI registered and

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tested fund distributors and financial planners who are capable of guiding the investors. TYPES OF RISKS Consider these common types of risk and evaluate them against potential rewards when you select an investment. Managing Risk At times the prices or yields of all the securities in a particular market rise or fall due to broad outside influences. When this happens, the stock prices of both an outstanding, highly profitable company and a fledgling corporation may be affected. This change in price is due to "market risk". Inflation Risk Sometimes referred to as "loss of purchasing power." Whenever inflation sprints forward faster than the earnings on your investment, you run the risk that you'll actually be able to buy less, not more. Inflation risk also occurs when prices rise faster than your returns. Changing interest rates affect both equities and bonds in many ways. Investors are reminded that "predicting" which way rates will go is rarely successful. A diversified portfolio can help in offsetting these changes. Credit Risk In short, how stable is the company or entity to which you lend your money when you invest? How certain are you that it will be able to pay the interest you are promised, or repay your principal when the investment matures?

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Effect of Loss of Key Professional An industries' key asset is often the personnel who run the business i.e. intellectual properties of the key employees of the respective companies. Given the ever-changing complexion of few industries and the high obsolescence levels, availability of qualified, trained and motivated personnel is very critical for the success of industries in few sectors. It is, therefore, necessary to attract key personnel and also to retain them to meet the changing environment and challenges the sector offers. Failure or inability to attract/retain such qualified key personnel may impact the prospects of the companies in the particular sector in which the fund invests. Exchange Risk A number of companies generate revenues in foreign currencies and may have investments or expenses also denominated in foreign currencies. Changes in exchange rates may, therefore, have a positive or negative impact on companies which in turn would have an effect on the investment of the fund. Inbvestment Risk The sectoral fund schemes, investments will be predominantly in equities of select companies in the particular sectors. Accordingly, the NAV of the schemes are linked to the equity performance of such companies and may be more volatile than a more diversified portfolio of equities. Changes In The Government policy

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Changes in Government policy especially in regard to the tax benefits may impact the business prospects of the companies leading to an impact on the investments made by the

CHAPTER - 3 MARKET TREND

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MARKET TREND

MARKET TREN A lone UTI with just one scheme in 1964 now competes with as many as 400 odd products and 34 players in the market. In spite of the stiff competition and losing market share, UTI still remains a formidable force to reckon with. Last six years have been the most turbulent as well as exiting ones for the industry. New players have come in, while others have decided to close shop by either selling off or merging with others. Product innovation is now passed with the game shifting to performance delivery in fund management as well as service. Those directly associated with the fund management industry like distributors, registrars and transfer agents, and even the regulators have become more mature and responsible. The industry is also having a profound impact on financial markets. While UTI has always been a dominant player on the bourses as well as the debt markets, the new generations of private funds which have gained

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substantial mass are now seen flexing their muscles. Fund managers, by their selection criteria for stocks have forced corporate governance on the industry. By rewarding honest and transparent management with higher valuations, a system of risk-reward has been created where the corporate sector is more transparent then before. Funds have shifted their focus to the recession free sectors like pharmaceuticals, FMCG and technology sector. Funds performances are improving. What is particularly noteworthy is that bulk of the mobilization has been by the private sector mutual funds rather than public sector mutual funds. Mutual funds are now also competing with commercial banks in the race for retail investors 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 in the current year indicates that money is going to mutual funds 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

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fund assets are not even 10% of the bank deposits, but this trend is beginning to change. Recent figures indicate that in the first quarter of the current fiscal year mutual fund assets went up by 115% whereas bank deposits rose by only 17%. (Source: Think tank, The Financial Express September 99) 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. Many private players are also coming in the industry with their own mutual fund such as Birla Sun Life, Reliance, HDFC Mutual Fund etc. Reliance now days is competing the market having a better market share as compared to other players in the industry. SBI Mutual fund too also plays an important role in this industry. Even today many people still like to invest in the public sector undertaking in order to avoid risk. HDFC Mutual Fund is also doing well with their ELSS schemes, such as Long Term Advantage Fund, Tax Saver Fund, etc. When markets are down HDFC Funds normally gives better returns as their return has always given average return at the time when the market where at its peak. Now HDFC are the first who are coming up with the Real Estate Fund.

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 Their NFO would come in the month of June or July 2008.

CHAPTER 4
MAJOR PLAYERS IN THE INDIAN MUTUAL FUND INDUSTRY

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MAJOR PLAYERS IN THE INDIAN MUTUAL FUND INDUSTRY Morgan Stanley Asset Management (I) Pvt. Ltd. Morgan Stanley Dean Witter & Co. is a preeminent global financial services firm that provides a wide range of services to major corporations, governments, financial institutions and high-networth individuals worldwide. With approximately 50,000 employees in 24 countries, the Firm has a significant presence in every financial market. Morgan Stanley Dean Witter (MSDW) Investment Management is the institutional asset management division of MSDW & Co. MSDW Investment Management was established in 1975 to help governments, corporations, pension funds and non-profit organizations meet their long-term investment objectives. MSDW Investment Management manages US$ 385 billion for institutional and individual investors. MSDW Investment Management manages three major offshore India funds, the India Magnum Fund (traded on the Dublin Stock
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Exchange), the India Investment AG (listed on the Zurich Stock Exchange) and the India Investment Fund (traded on the New York Stock Exchange). The Morgan Stanley Growth Fund was launched in January 1994 and garnered an initial corpus of Rs. 981 crores. MSGF is listed on the Mumbai, Delhi, Calcutta, Chennai and Ahmedabad Stock Exchanges and is also traded on the National Stock Exchange. In 1997, MSGF units were placed as eligible securities with the National Securities Depository Limited, which made it possible for unit holders to hold units in electronic/dematerialized form.

DSP Merill Lynch Investment Managers

DSP Merrill Lynch Asset Management (India) Ltd., (a company registered under the Companies Act, 1956) has been set up by DSPML and MLAM, to act as the Asset Management Company (AMC) to the Fund. The AMC has been appointed as the Investment Manager to the fund, MLAM holds 40% of the paid up share capital of the AMC, while the balance 60% (approximately), is held by DSPML. The Investment Manager was approved by SEBI to act as the AMC for the Mutual Fund. Merrill Lynch Investment Managers investment philosophy is designed to seek consistent, long-term strategic performance results. Its disciplined value oriented approach to managing its clients portfolios has been with the primary objective of seeking consistent returns over a long period.

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DSP Merrill Lynch Asset Management (India) Ltd. has been changed its name to DSP Merrill Lynch Investment Managers Ltd. w.e.f 20th July 2005-06. No. of schemes No. of schemes including options Equity Schemes Debt Schemes Short term debt Schemes Equity & Debt Gilt Fund 8 13 3 2 2 2 4

Birla Sunlife Asset Management Company Ltd

Birla Sun Life AMC Ltd. is a joint venture between Sun Life Assurance Company of Canada and the Aditya Birla Group, one of Indian leading Industrial houses. Sun Life Assurance Company of Canada is a leading financial services organization, providing a diversified range of risk management, wealth management and money management products for individuals and corporations worldwide. Sun Life commenced business in Canada in 1871, and is headquartered in Toronto with major operations in Canada, United States, United Kingdom and Asia Pacific. Sun Life has consistently earned ratings that rank among the best in the North American financial services sector. It has a major presence in the growing mutual fund markets through MFS Investment Management in the U.S., and
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through Spectrum United Mutual Funds in Canada. It is also active in the unit trust business in the U.K., and its near term plans include consideration of mutual fund offerings in the Philippines. The Aditya Birla group is a multinational group consisting of the best known companies in India in a range of key sectors like Textiles (GRASIM), Rayon (Indian Rayon), Aluminum (HINDALCO), Petroleum (MRPL), Finance (BGFL), Fertilizers (Indo-Gulf). Birla Mutual Fund offers investment Schemes which aim to cater to every need of the investor. Drawing on the expertise of a worldwide staff of over 10,000 people and a network of more than 65,000 agents and distributors, Sun Life is committed to providing not just products and services, but solutions for clients financial and risk management needs. No. of schemes No. of schemes including options Equity Schemes Debt Schemes Short term debt Schemes Equity & Debt 10 20 8 2 2 2

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Kothari Pioneer Asset Management Company Ltd.

Kothari Pioneer Mutual Fund is sponsored by the Investment Trust of India Ltd. of the H C Kothari Group and Pioneer Investment Management Inc.(PIM) of The Pioneer Group Inc.,USA. Kothari Pioneer is one of India s first mutual fund in the private sector. Today, it manages Rs.2700 crores in assets for over 650,000 investors across a range of growth, balanced, income, liquid and tax saving funds. The sponsors of the fund are Pioneer Investment Management (PIM), USA and the Investment Trust of India, who together bring more than 120 years of experience in financial services. PIM currently manages over $24 billion in assets worldwide on behalf of individual and institutional investors. Based in Boston, Pioneer has financial services operations in Germany, Ireland, Poland, Czech Republic, India and Russia. Its flagship fund, Pioneer Fund,

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was founded in 1928 and is the fourth oldest mutual fund in the United States. No. of schemes No. of schemes including options Equity Schemes Debt Schemes Short-term debt Schemes Equity & Debt Money Market 21 34 18 12 2 1 1

Sun F & C Asset Management (India) Pvt. Ltd.

SUN F&C Asset Management (India) Pvt. Ltd. is an equal joint venture between Foreign & Colonial Emerging Markets Ltd. U.K. and SUN Securities (India) Pvt. Ltd. Foreign & Colonial, established in 1868, is one of Europe s leading asset management groups. F&C is a part of Hypo Bank, one of Germany s oldest and largest banks and has been investing in the Indian stock markets since 1993. SSIL is an Indian subsidiary company of Sun Group. Its activities well consist as of principal investment commercial and investment management operations in emerging markets and technologies as international activities. SUN F&C currently manages and advises India Performance Fund (an offshore fund), SUN F&C Value Fund (a domestic fund) and F&C sponsored Indian Investment Company SICAV (INDICO).
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SUN F&C launched its Indian operations by becoming the domestic advisor to FCEMs INDICO fund. It has since then launched India Performance Fund, an offshore fund, in 1996 and five domestic schemes - Value Fund (1997), Money Value Fund (1998), Balanced Fund (1999), Emerging Technologies Fund (2005-06), Monthly Income Plan (2005-06) and Resurgent India Equity Fund (200506). Over the last 5 years, the Company has built a strong track record of managing asset classes, equity and debt. Today, Sun F&C manages/advises a corpus of over Rs.1000 crore (US$230 mn), of which over 50% is equity. This corpus is spread over 8 schemes, 6 domestic and 2 offshore. A team of 56 people spread over 8 location service almost 80,000 customers.

UNIT TRUST OF INDIA

Every year, millions of Indians entrust their savings to Unit Trust of India to build up a financially secure future. This faith and confidence of investors stem from UTI's commitment, as reflected in its long track record to ensure its investors, safety, liquidity and attractive yield on their investments.

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Set up in 1964, by an Act of Parliament, UTI Act 1963, UTI has grown into one of the biggest players and carved out a special position in the Indian capital market. Today, UTI manages an aggregate portfolio of Rs. 72,698 Crore as on 31/12/1999 and services 45 million investor accounts under 90 saving schemes catering to varying needs of different classes of investors. UTI has a servicing and distribution network of 53 branch offices, 320 District Representatives and about 87,000 agents. It provides a complete range of services to its investors, at a low gross cost of less than 1.01 percent of invisible funds and does not charge any asset management fee. UTI is a symbol of trust and confidence among Indian investors. In the last seven years, the number of schemes managed by UTI increased from 35 to 92, while the number of unit holding accounts recorded a sevenfold increase from 65 lakhs to over 450 lakhs. UTI's expanding product range cover a broad spectrum of investment goals and includes open end and closed-end income and capital accumulation funds. Among the most popular are Unit Scheme 1964 and Master series equity schemes such as Mastershare, Masterplus, Master Equity Plans, etc. UTI also manages schemes aimed at meeting specific needs like

Low cost insurance cover (ULIP) Monthly income needs of retired persons and women.
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 Income and liquidity needs of religious and charitable institutions and trusts. Building up funds to meet cost of higher education and career plans for children. Future wealth and income needs of girl child and women. Building savings to cover medical insurance at old age. Wealth accumulation to meet income needs after retirement. Individual household investors account for 99% of UTI's investor accounts and about 65% of unit capital of UTI schemes. Products are distributed through a marketing force of about 87,000 commission-based canvassing agents trained to explain the products and provide related services support to investors. Today, these agents are supervised by 320 Chief Representatives who guide the investors, organize, train and motivate the agents in their respective areas of operation (specified districts) Investors under various schemes of UTI are now serviced through 53 UTI branches, 213 collection centers and offices of 6 Registrar and Transfer Agencies appointed by UTI. Besides there are 52 franchises offices, which accept applications and distribute certificates to unit holders. UTI has set up its own associate company, UTI-Investor Services Limited (UTIISL), to meet the growing needs of unit holder servicing.

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UTI is also currently implementing a technology upgradation program, involving networking of on-line computer systems at UTI's offices, and offices of Registrars and Transfer Agencies. This would enable UTI to improve service quality significantly. UTI publishes weekly/daily NAVs for all its listed schemes and offers a prospectus for every scheme. It also publishes half-yearly results for all schemes and releases information on portfolio as also largest shareholding for growth schemes and Unit Scheme 1964. UTI adheres to disclosure requirements specified by SEBI.

Equity Investing: More than fifty percent of total funds of UTI Schemes are invested in equity. UTI is the largest operator in the Indian equity market with total investments worth Rs 35,007.83 crores at book value. Its various funds collectively hold stocks in more than 1500 Indian companies and account for over 8 percent of the market capitalization of all listed scripts on the Bombay Stock Exchange. Corporate debt: UTI is one of the main providers of debt finance to the corporate sector. Investment in corporate debt instruments account for 38 percent of the total investible funds. Credit market operations cover a range of instruments including publicly issued and privately placed debentures, bonds and medium term notes. UTI's debt portfolio quality is represented by 98 percent performing assets. HDFC AMC (ASSET MANAGEMENT COMPANY) HDFC Asset Management Company Ltd (AMC) was incorporated

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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 wide with its letter dated 30th june 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 the AMC to manage the mutual fund. As per the terms of the Investment Management Agreement, the AMC will conduct the operations of the Mutual Fund and manage assets of the schemes, including the schemes launched from time to time The single most important factor that drives HDFC Mutual Fund is its belief to give the investor the chance to profitably invest in the financial market, without constantly worrying about the market swings. To realize this belief, HDFC Mutual Fund has set up the infrastructure required to conduct all the fundamental research and back it up with effective analysis. Our strong emphasis on managing and controlling portfolio risk avoids chasing the latest fads and trends. HDFC Asset Management Company (AMC) is the first AMC in India to have been assigned the CRISIL Fund House Level 1 rating. This is its highest Fund Governance and Process Quality Rating which reflects the highest governance levels and fund management practices at HDFC AMC It is the only fund house to have been assigned this rating for two years in succession. Over the past, we have won a number of awards and accolades for our

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performance. 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), 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.

The AMC is also managing 8 closed ended Schemes of the HDFC Mutual Fund viz. HDFC Long Term Equity Fund, HDFC Mid-Cap Opportunities Fund, HDFC Fixed Maturity Plans, HDFC Fixed Maturity Plans - Series II, HDFC Fixed Maturity Plans - Series III, HDFC Fixed Maturity Plans - Series IV, HDFC Fixed Maturity Plans - Series V and HDFC Fixed Maturity Plans - Series VI.

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Banks v/s Mutual Funds CHARACTERISTI BANKS CS Returns Administrative exp. Risk Investment options Network MUTUAL FUNDS Better Low Moderate More Low but

Low High Low Less High penetration

improving Liquidity At a cost Better Quality of assets Not transparent Transparent Interest Minimum balance betweenEveryday calculation Guarantee 10th. & 30th. Of every month Maximum Rs.1 lakhs onNone deposits

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CHAPTER- 5
REGULATORY ASPECT OF A MUTUAL FUND

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REGULATORY ASPECT OF A MUTUAL FUND Schemes of a Mutual Fund The asset management company shall launch no scheme unless the trustees approve such scheme and a copy of the offer document has been filed with the Board. Every mutual fund shall along with the offer document of each scheme pay filing fees. The offer document shall contain disclosures which are adequate in order to enable the investors to make informed investment decision including the disclosure on maximum investments proposed to be made by the scheme in the listed securities of the group companies of the sponsor The mutual fund and asset Management Company shall be liable to refund the application money to the applicants If the mutual fund fails to receive the minimum subscription amount referred to in clause (a) of sub-regulation (1) If the moneys received from the applicants for units are in excess of subscription as referred to in clause (b) of subregulation (1).

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 The asset management company shall issue to the applicant whose application has been accepted, unit certificates or a statement of accounts specifying the number of units allotted to the applicant as soon as possible but not later than six weeks from the date of closure of the initial subscription list and or from the date of receipt of the request from the unit holders in any open ended scheme.

Rules Regarding Advertisement The offer document and advertisement materials shall not be misleading or contain any statement or opinion, which are incorrect or false. Investment Objectives and Valuation Policies: The price at which the units may be subscribed or sold and the price at which such units may at any time be repurchased by the mutual fund shall be made available to the investors. General Obligations Every asset management company for each scheme shall keep and maintain proper books of accounts, records and documents, for each scheme so as to explain its transactions and to disclose at any point of time the financial position of each scheme and in particular give a true and fair view of the state of affairs of the fund and intimate to the Board the place where such books of accounts, records and documents are maintained.

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 The financial year for all the schemes shall end as of March 31 of each year. Every mutual fund shall have the annual statement of accounts audited by an auditor who is not in any way associated with the auditor of the asset management company.

Procedure for Action In Case Of Default On and from the date of the suspension of the certificate or the approval, as the case may be, the mutual fund, trustees or asset management company, shall cease to carry on any activity as a mutual fund, trustee or asset management company, during the period of suspension, and shall be subject to the directions of the Board with regard to any records, documents, or securities that may be in its custody or control, relating to its activities as mutual fund, trustees or asset management company.

Restrictions on Investments A mutual fund scheme shall not invest more than 15% of its NAV in debt instruments issued by a single issuer, which are rated not below investment grade by a credit rating agency authorized to carry out such activity under the Act. Such investment limit may be extended to 20% of the NAV of the scheme with the prior approval of the Board of Trustees and the Board of asset Management Company.

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 A mutual fund scheme shall not invest more than 10% of its NAV in an rated debt instruments issued by a single issuer and the total investment in such instruments shall not exceed 25% of the NAV of the scheme. All such investments shall be made with the prior approval of the Board of Trustees and the Board of asset Management Company. No mutual fund under all its schemes should own more than ten per cent of any company's paid up capital carrying voting rights. Such transfers are done at the prevailing market price for quoted instruments on spot basis. The securities so transferred shall be in conformity with the investment objective of the scheme to which such transfer has been made. A scheme may invest in another scheme under the same asset management company or any other mutual fund without charging any fees, provided that aggregate inter scheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund. The initial issue expenses in respect of any scheme may not exceed six per cent of the funds raised under that scheme. Every mutual fund shall buy and sell securities on the basis of deliveries and shall in all cases of purchases, take delivery of relative securities and in all cases of sale, deliver the securities and shall in no case put itself in a position whereby it has to make short sale or carry forward transaction or engage in badla finance.

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 Every mutual fund shall, get the securities purchased or transferred in the name of the mutual fund on account of the concerned scheme, wherever investments are intended to be of long-term nature. Pending deployment of funds of a scheme in securities in terms of investment objectives of the scheme a mutual fund can invest the funds of the scheme in short term deposits of scheduled commercial banks. No mutual fund scheme shall make any investment in; Any unlisted security of an associate or group company of the sponsor; or Any security issued by way of private placement by an associate or group company of the sponsor; or The listed securities of group companies of the sponsor which is in excess of 30% of the net assets [of all the schemes of a mutual fund. No mutual fund scheme shall invest more than 10 per cent of its NAV in the equity shares or equity related instruments of any company. Provided that, the limit of 10 per cent shall not be applicable for investments in index fund or sector or industry specific scheme. A mutual fund scheme shall not invest more than 5% of its NAV in the equity shares or equity related investments in case of open-ended scheme and 10% of its NAV in case of close-ended scheme.

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INTERNET AND THE MUTUAL FUND INDUSTRY Here are some of the basic changes that have taken place since the advent of the Net. Lower Costs Distribution of funds will fall in the online trading regime by 2005. Mutual funds could bring down their administrative costs to 0.75% if trading is done on- line. As per SEBI regulations, bond funds can charge a maximum of 2.25% and equity funds can charge 2.5% as administrative fees. Therefore if the administrative costs are low, the benefits are passed down and hence Mutual Funds are able to attract mire investors and increase their asset base. Better advice Mutual funds could provide better advice to their investors through the Net rather than through the traditional investment routes where there is an additional channel to deal with the Brokers. Direct dealing with the fund could help the investor with their financial planning. In India, brokers could get more Net savvy than investors and could help the investors with the knowledge through get from the Net.

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New investors would prefer online Mutual funds can target investors who are young individuals and who are Net savvy, since servicing them would be easier on the Net. India has around 1.6 million net users who are prime target for these funds and this could just be the beginning. The Internet users are going to increase dramatically and mutual funds are going to be the best beneficiary. With smaller administrative costs more funds would be mobilized .A fund manager must be ready to tackle the volatility and will have to maintain sufficient amount of investments which are high liquidity and low yielding investments to honor redemption. Net based advertisements There will be more sites involved in ads and promotion of mutual funds. In the U.S. sites like AOL offer detailed research and financial details about the functioning of different funds and their performance statistics. a is witnessing a genesis in this area . There are many sites such as indiainfoline.com and indiafn.com that are doing something similar and providing advice to investors regarding their investments. In the U.S. most mutual funds concentrate only on financial funds like equity and debt. Some like real estate funds and commodity funds also take an exposure to physical assets.

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CHAPTER 6
ANALYSIS OF QUESTIONNAIRE

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ANALYSIS OF QUESTIONNAIRE Q1) Are you familiar with mutual funds? 1) Yes 2) No

No 35%

Yes No

Yes 65%

Conclusion: Out of the total respondents most of the people are aware of mutual funds and only few of them are not aware of the funds.

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Q2) If yes, then which type of mutual fund do you invest. 1) 2) 3) Equity Fund Debt Fund Balanced Fund

Balanced Fund 32%

Equity Fund 18%

Equity Fund Debt Fund Balanced Fund Debt Fund 50%

Conclusion: Out of total respondents 50% people invest in the debt fund as compared to 32% people invest in the balanced fund and very few people are ready to take the risk of equity fund.

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Q3) How much do you invest in mutual fund. 1) 5000 2) 5000 - 10000 3) 10000-20000 4) Above 20000

Above 20000 15% 10000 To 20000 20%

5000 30%

5000 5000 To 10000 10000 To 20000 Above 20000

5000 To 10000 35%

Conclusion: Out of the total respondents most of the people normally invest around 5000 to 10000 and the rest of them invest according to their own needs and desire.

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Q4) For what purpose do you invest in mutual fund. 1) Security of money 2) Rate of Return 3) Profitability 4) Liquidity

Liquidity 25%

Security 20%

Security Profitability Rate of Return Liquidity

Rate of Return 15%

Conclusion: Most of the people invest in mutual fund to earn profit as compared to have more security and liquidity.

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Q5) Do you think it is expensive investing in mutual fund 1) Yes 2) No

No 35%

Yes No

Yes 65%

Conclusion: Most of the people feel that investing in mutual fund is bit expensive as compared to the other investment schemes in bank deposits.

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Q6) Does your fund gives regular return 1) 2) Yes No

No 30%

Yes

No

Yes 70%

Conclusion: Most of the people feel that their fund gives them regular return whereas rest of them feels that their fund sometimes gives negative return.

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Q7) How much do you invest in Bank Deposits. 1) 2) 3) 4) <25000 25000 - 50000 50000 - 75000 Around 100000

50000 To 75000 20%

Around 100000 15%

<25000 25%

<25000 25000 To 50000 50000 To 75000 Around 100000

Conclusion: Out of the total respondents 40% of them preferred to invest around 25000 to 40000 in bank deposits and 20% of them invest around 25000 in the bank deposits.

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Q8) What type of investment do you prefer. 1) Mutual Fund 2) Bank Saving Accounts 3) Fixed Deposits Schemes

Mutual Fund 21%

Mutual Fund Bank Accounts Fixed Deposits

Fixed Deposits 63%

Bank Accounts 16%

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Conclusion: Out of the total respondent most of them prefer to invest in the fixed deposits scheme as compared to the mutual funds and very few people invests in the savings accounts.

Q9) How do you invest in mutual fund. 1) Agents 2) Distribution Companies 3) AMCs

AMC's 35%

Agents 25% Agents Distribution companies AMC's Distribution companies 40%

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Conclusion: Most of the people invest in mutual fund through distribution companies as compared to direct investments in asset management companies and very few people invest through agents.

Q10) Of the following companies where do you prefer to invest. 1) SBI mutual fund 2) Reliance mutual fund 3) HDFC mutual fund 4) Birla Sun Life

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Birla Sun Life 20%

SBI mutual fund 25%

SBI mutual fund Reliance mutual fund HDFC mutual fund

HDFC mutual fund 25%

Birla Sun Life

Conclusion: Out of the total respondent most of them invest in reliance mutual fund as compared to the other mutual fund companies.

Q11) If market falls, what do you do. 1) 2) 3) 4) Redeem the amount. Hold the investment. Further invest. Invest in some other kind of investment.

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Invest in Other funds 20%

Redeem 40%

Redeem Hold Further Investment

Further Investment 15%

Hold 25%

Invest in Other funds

Conclusion: When market falls most of the people redeem the amount and only few people hold the investment and only 15% of the people further invest in securities.

Q12) Do you invest systematically. 1) 2) Yes No

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No 35%

Yes No

Yes 65%

Conclusion: Most of the people now days invest systematically as very few people prefer to invest in lump sum amount.

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CHAPTER 7 FINDINGS OF THE STUDY

CONCLUSION At the end of the project the conclusion which can be drawn is that the mutual fund industry is going to be one
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of the emerging avenues for the investors in the time to come. Most of the people show less interest in the mutual funds.

Most of the respondents who were aware of the funds too were not interested in investing their savings in the Mutual Funds. They were not confident of the safety and security of the investments in Mutual Funds. People normally give preference to the bank deposits schemes as compared to the mutual fund because of the risk factor associated with it. Most of the respondents are mainly look for the profitability in the mutual funds which becomes difficult for them because they normally invest their larger proportion of their amount in debt instruments as compared to equity which gives less return. Many people also do not invest in mutual fund because of the fact that the cost is high in mutual funds, as they have to pay entry and exit load attached to the fund.

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 People normally go through distribution companies while investing in the mutual funds and hence can avoid any fraud and flaws associated with the investments. According to the survey many people prefer invest in the Reliance mutual fund as compared to the other funds available in the market. The concept of SIP(systematic Investment plan) is some thing which caters to both the return expectation and security. And normally people are now likely to invest through SIPs.

RECCOMENDATIONS

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After the complete study of the mutual funds and based upon my experience and observations. The following suggestions are made which may be beneficial for increasing the effectiveness of the mutual funds. People should be given more awareness about the mutual fund in order to enhance the business Regular and detailed information should be provided to the investor and must be given all the details of the new fund which ever comes in the market. More emphasis should be given to the equity linked schemes in mutual fund as compared to debt schemes in order to gain more profit from equities. The expenses of the fund should be reduced so that the investor can invest easily. People should invest directly through AMC in order to avoid expenses associated with the fund. They should not stick to one fund only as it may not give better return all the time, rather they should invest in different securities. Lastly people should invest through systematic investment plans instead investing in lump sum.

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CHAPTER - 8 LIMITATIONS

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LIMITATION 1. Time Constraints The time duration of conducting the

research was less so a lot of factors were ignored. A large sample could not be taken due to

same reason. 2. The survey was conducted during free hours. The customers did not respond when they were contacted in peak hours.

3.

Most of the customers were ignorant and were not willing to respond that leads to inaccuracy in data collected.

4.

As the data was based on customers perception, it might be biased to certain extent.

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ANNEXURE
Q1) Are you familiar with mutual funds? 1)Yes 2) No Q2) If yes, then which type of mutual fund do you invest. 1) Equity Fund 2) Debt Fund 3) Balanced Fund Q3) How much do you invest in mutual fund. 1) 5000 2) 5000 - 10000 3) 10000-20000 4) Above 20000 Q4) For what purpose do you invest in mutual fund. 1) Security of money 2) Rate of Return 3) Profitability 4) Liquidity

Q5) Do you think it is expensive investing in mutual fund 1) Yes 2) No

Q6) Does your fund gives regular return

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1) 2)

Yes No Q7) How much do you invest in Bank Deposits.

1) 2) 3) 4)

<25000 25000 - 50000 50000 - 75000 Around 100000

Q8) What type of investment do you prefer. 1) Mutual Fund 2) Bank Saving Accounts 3) Fixed Deposits Schemes Q9) How do you invest in mutual fund. 1) Agents 2) Distribution Companies 3) AMCs Q10) Of the following companies where do you prefer to invest. 1) SBI mutual fund 2) Reliance mutual fund 3) HDFC mutual fund 4) Birla Sun Life

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Q11) If market falls, what do you do. 1) 2) 3) Redeem the amount. Hold the investment. Further invest. 4) Invest in some other kind of investment. Q12) Do you invest systematically. 1)Yes 2) No

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BIBLIOGRAPHY

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BIBLIOGRAPHY The websites referred by me are:1) 2) 3) 4) 5) www.amfiindia.com www.hdfcfund.com www.mutualfundindia.com www.google.com www.valueresearch.com

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