SUMMER TRAINING REPORT ON

"CONSUMER BEHAVIOUR ABOUT MUTUAL FUND IN KARVY"

Submitted in Partial Fulfillment in Award of Degree of BBA

UNDER THE GUIDANCE OF :

Faculty Guide Industrial Guide

Submitted By:

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ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep gratitude to all

those who, directly or indirectly made this project possible.I have got

considerable help and support in making this project report a reality from

many people.

I would like to thank Mr. Sandeep Srivastava whose endeavor

for perfection, under fatigable zeal, innovation and dynamism

contributed in a big way in completing this project. This work is the

reflection of his thought, ideas, concept and above all his modest effort.

At last, I would like to thank my parents, friends and colleagues, who

have been a constant source of help and encouragement.

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EXECUTIVE SUMMARY

This project is completely based on market research of paint. Under this

research, we have taken 100 sample sizes of which 100 questionnaires

belong to 6 companies like Karvy, UTI, Birl, Birla, HDFC, Reliance, ICICI

Pru. We have taken only one brand mutual fund of these 6 Companies.

In spite of research we have analyzed the brand (mutual fund) in

numerical nature. On the basis of that we have assessed the strong

brand and weak brand out of five brands. Then after we have

formulated the strategy of each brand in which we have told about

grabbing the market on the basis of:-

Quality product rendered to customer.

To attain customer satisfaction

To reduce the price of brand so sales can be boost up.

To advertise their product which is socially accepted?

To advertise their product through prominent celebrity.

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On basis of weak brand, we have given recommendation in which we

mentioned how to strengthen the weak brand. This is the precise study

of project.

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CONTENT

1. INTRODUCTION

2. MUTUAL FUNDS

3. MAJOR PLAYERS

4. RESEARCH METHODOLOGY

5. CONCLUSION

6. SUGGESTION

7. LIMITATION

8. BIBLIOGRAPHY

9. ANNEXURE

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INTRODUCTION

MUTUAL FUND

A Mutual Fund is a body corporate registered with SEBI (Securities

Exchange Board of India) that pools money from individuals/corporate

investors and invests the same in a variety of different financial

instruments or securities such as equity shares, Government securities,

Bonds, debentures etc.Mutual funds can thus be considered as financial

intermediaries in the investment business that collect funds from the

public and invest on behalf of the investors. Mutual funds issue units to

the investors.The appreciation of the portfolio or securities in which the

mutual fund has invested the money leads to an appreciation in the value

of the units held by investors.The investment objectives outlined by a

Mutual Fund in its prospectus are binding on the Mutual Fund scheme.

The investment objectives specify the class of securities a Mutual Fund

can invest in. Mutual Funds invest in various asset classes like equity,

bonds, debentures, commercial paper and government securities. The

schemes offered by mutual funds vary from fund to fund. Some are pure

equity schemes; others are a mix of equity and bonds. Investors are also

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given the option of getting dividends, which are declared periodically by

the mutual fund, or to participate only in the capital appreciation of the

scheme.

Evolution of Mutual Fund

The first investment trust (now called mutual fund) began in the Netherlands

in the early 1800s. The first in the U.S. was the New York Stock Trust,

which started in 1889. Since Boston was the economic center of the nation

until the turn of the century, the majority of funds started there—Fidelity,

Pioneer and Putnum Fund, to name a few. A fund that was comprised of

both stocks and bonds (the Wellington Fund) started in 1928 and is still part

of Vanguard. As the 20's crashed to a close, there were 10 mutual funds in

the nation.

The Sixties saw the growth in aggressive (high risk) funds that were labeled,

in the vernacular of the times, "hot-shot" or "go-go" funds. They were sexy

and fast, there were a hundred of them by the late Sixties and a lot of

people dumped a lot of money in them until the bearish times of 1969

freaked everybody out: investors yanked out their money and have been

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kicking themselves ever since, because some funds increased in value by

more than 9,000%.

Until this time, people had been paying sales commissions on their funds. In

the '70s, no-load funds were invented, and the biggest today. Vanguard

Funds, wasfounded in 1977. At the end of the Sixties, there were nearly 250

different mutual funds;today, they number over 6,000. But here's the thing:

the last time a mutual fund went bankrupt was 1940. And mutual funds often

outperform the stock market.

Benefits involved in investing Mutual Fund

There are several benefits from investing in a Mutual Fund:

Small investments

Mutual funds help you to reap the benefit of returns by a portfolio spread

across a wide spectrum of companies with small investments.

Professional Fund Management

Professionals having considerable expertise, experience and resources

manage the pool ofmoney collected by a mutual fund. They thoroughly

analyse themarkets and economy to pick good investment opportunities.

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Spreading Risk

An investor with limited funds might be able to invest in only one or two

stocks/bonds, thus increasing his or her risk. However, a mutual fund will

spread its risk by investing a number of sound stocks or bonds. A fund

normally invests in companies across a wide range of industries, so the risk

is diversified.

Transparency

Mutual Funds regularly provide investors with information on the value of

their investments. Mutual Funds also provide complete portfolio disclosure

of the investments made by various schemes and also the proportion

invested in each asset type.

Choice

The large amount of Mutual Funds offer the investor a wide variety to

choose from. An investor can pick up a scheme depending upon his risk/

return profile.

Regulations

All the mutual funds are registered with SEBI and theyfunction within the

provisions of strict regulation designed to protect the interests of the

investor.

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TYPES OF MUTUAL FUNDS

Mutual funds are classified in the following manner:

(a) On the basis of Objective

Equity Funds/ Growth Funds

Funds that invest in equity shares are called equity funds. They carry the

principal objective of capital appreciation of the investment over the

medium to long-term. They are best suited for investors who are seeking

capital appreciation. There are different types of equity funds such as

Diversified funds, Sector specific funds and Index based funds.

Diversified funds

These funds invest in companies spread across sectors. These funds

are generally meant for risk-averse investors who want a diversified

portfolio across sectors.

Sector funds

These funds invest primarily in equity shares of companies in a

particular business sector or industry. These funds are targeted at

investors who are bullish or fancy the prospects of

a particular sector.

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Index funds

These funds invest in the same pattern as popular market indices like

S&P CNX Nifty or CNX Midcap 200. The money collected from the

investors is invested only in the stocks, which represent the index. For

e.g. a Nifty index fund will invest only in the Nifty 50 stocks.

The objective of such funds is not to beat the market but to give a return

equivalent to the market returns.

Tax Saving Funds

These funds offer tax benefits to investors under the Income Tax Act.

Opportunities provided under this scheme are in the form of tax rebates

under the Income Tax act.

Debt/Income Funds

These funds invest predominantly in high-rated fixed-income-bearing

instruments like bonds, debentures, government securities, commercial

paper and other money market instruments. They are best suited for the

medium to long-term investors who are averse to risk and seek capital

preservation. They provide a regular income to the investor.

Liquid Funds/Money Market Funds

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These funds invest in highly liquid money market instruments. The

period of investment could be as short as a day. They provide easy

liquidity. They have emerged as an alternative for savings and shortterm

fixed deposit accounts with comparatively higher returns. These funds

are ideal for corporates,institutional investors and business houses that

invest their funds for very short periods.

Gilt Funds

These funds invest in Central and State Government securities. Since

they are Government backed bonds they give a secured return and also

ensure safety of the principal amount. They are best suited for the

medium to long-term investors who are averse to risk.

Balanced Funds

These funds invest both in equity shares and fixed-income-bearing

instruments (debt) in some proportion. They provide a steady return and

reduce the volatility of the fund while providing some upside for capital

appreciation. They are ideal for medium to long-term investors who are

willing to take moderate risks.

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b) On the basis of Flexibility

Open-ended Funds

These funds do not have a fixed date of redemption. Generally they are

open for subscription and redemption throughout the year. Their prices

are linked to the daily net asset value (NAV). From the investors'

perspective, they are much more liquid than closed-ended funds.

Close-ended Funds

These funds are open initially for entry during the Initial Public Offering

(IPO) and thereafter closed for entry as well as exit. These funds have a

fixed date of redemption. One of the characteristics of the close-ended

schemes is that they are generally traded at a discount to NAV; but the

discount narrows as maturity nears. These funds are open for

subscription only once and can be redeemed only on the fixed date of

redemption. The units of these funds are listed on stock exchanges (with

certain exceptions), are tradable and the subscribers to the fund would

be able to exit from the fund at any time through the secondary market.

Different investment plans that Mutual Funds offer

The term ’investment plans’ generally refers to the services that the

funds provide to investors offering different ways to invest or

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reinvest.The different investment plans are an important consideration in

the investment decision, because they determine the flexibility available

to the investor. Some of the investment plans offered by mutual funds in

India are:

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Growth Plan and Dividend Plan

A growth plan is a plan under a scheme wherein the returns from

investments are reinvested and very few income distributions, if any, are

made. The investor thus only realizes capital appreciation on the

investment. Under the dividend plan, income is distributed from time to

time. This plan is ideal to those investors requiring regular income.

Dividend Reinvestment Plan

Dividend plans of schemes carry an additional option for reinvestment of

income distribution. This is referred to as the dividend reinvestment plan.

Under this plan, dividends declared by a fund are reinvested in the

scheme on behalf of the investor, thus increasing the number of units

held by the investors.

Rights that are available to a Mutual Fund holder in India

As per SEBI Regulations on Mutual Funds, an investor is entitled

to:

1. Receive Unit certificates or statements of accounts confirming your

title within 6 weeks from the date your request for a unit certificate is

received by the Mutual Fund.

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2. Receive information about the investment policies, investment

objectives, financial position and general affairs of the scheme.

3. Receive dividend within 42 days of their declaration and receive the

redemption or repurchase proceeds within 10 days from the date of

redemption or repurchase.

4. The trustees shall be bound to make such disclosures to the unit

holders as are essential in order to keep them informed about any

information, which may have an adverse bearing on their investments.

5. 75% of the unit holders with the prior approval of SEBI can terminate

the AMC of the fund.

6. 75% of the unit holders can pass a resolution to wind-up the scheme.

7. An investor can send complaints to SEBI, who will take up the matter

with the concerned Mutual Funds and follow up with them till they are

resolved.

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ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the

organisational set up of a mutual fund:

Mutual funds have a typical organisation in which five key parlies or

players or special bodies or constituents are involved. They are:

The sponsors, the Board of Trustees (EOT) or Trust Company

(TC)

The Asset Management Company (AMC)

The custodian, and

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The unit-holders

They are usually formed by an investment adviser or manager or

sponsor who selects and appoints a BOT, which, in turn, hires or

contracts a separate AMC which is run by professional managers.

The AMC conducts the necessary research, and based on it,

manages the fund or portfolio. It is responsible for floating, managing,

redeeming the schemes; it also handles the administrative chores. It

receives the fees for the services rendered by it. The custodian is

responsible far coordination with brokers, the actual transfer and

storage of stocks, and handling the property of the trust. He is

answerable to the AMC.As per the current regulations in force in

India, every MF proposed by a sponsor has to be setup as a trust

under the Indian Trust Act, 1882 (and not as a company under the

Companies Act, 1956). The UT1, however, was set up under a

special UTI Act, 1963. All MFs have to be registered with the SEBI. It

is required that the first four constituents of the MF should maintain

an arm's length relationship among themselves in order to reduce

conflict of interests, and to safeguard the interests of the

investors.Mutual funds can sell their units directly to the investors or

they may employ the sales forced brokers and agents for that

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purpose. Some MFs in the US charge their investors a sales fee for

the costs involved in selling the fund, and they are known as "load

funds". Those who do not charge, such a fee arc known as "no-load

funds". All funds charge their shareholders a management fee which

is paid out of the fund's income.

Sponser

The sponsor is the promoter of the mutual fund. He sponsor

establishes the mutual fund

Sponsor appoints the trustees .custodians and the AMC with prior

approval of SEB1,and in and registers the same with

SEB1.accordance with regualation.

Sponsor must have at least 5 years track record of business

interest in the financial markets,

Sponsor must have been profit making in at least 3 of the above 5

years-

Sponsor must contribute at least 40% of the capital of the AMC.

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Trustee

The mutual fund, which is a trust,is managed either by a trust

companies or a board of trustees and governed by the provisions of

the Indian Trust Act. The AMC and other functionaries are functially

accountable to trustees.

The sponsor executes and registers a trust deed in favour of the

trustees .the third schedule of SEB1 regulation specifies the

contents of the trust deed.

The appointment of all trustees has to be done with prior approval

of SEB1

There must be at least 4 members in the board of trustees must be

independent.

Trustees of one mutual fund cannot be trustees of another mutual

fund, unless he is an independent trustees in both cases, and has

the approval of both the boards.

Asset Management Company

The trustees on the advise of the sponsors, usually appoint the AMC.

The AMC has to be SEB1 registered entity and should have a

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minimum net worth management agreement with the AMC.which

spells out the functions of the AMC.

The following are various types of AMC's we have in India:

AMC's owned by banks.

AMC's owned by the Indian private sector companies

AMC's owned by the financial institutions.

AMC's owned by the foreign institution investors.

AMC's owned jointly by Indian and foreign sponsors.

AUDIT

Legal advisor advise mutual fund on regulatory and taxation issues.

Every mutual fund has an employee designated as compliance

officer, who works under the advise of the legal advisor. The AMC

aiso has its accounts and annual reports, these two sets of accounts

are required to be statutory audited. SEB1 regulation stipulate that

auditors of the fund can not also be the auditors of the AMC- the two

sets of accounts have to be

audited by to separate auditing firms. audotors charge a fee from the

mutual fund for these services.

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Transfer

As the fund stands ready to redeem the unit on any working day, the

transfer facility is found redundant. However, if a transferee becomes

a holder of scheme's units in an official capacity by operation of law

or is a scheduled bank/ financial institution upon enforcement of a

pledge, then the trustee shall subject to production of necessary

evidence, procide to affect the transfer, if the intended transferee is

otherwise in line with terms of the schemes -In case any

pledge/charge over the scheme's units is the registered with the

trustee, transfer will be affected in accordance with the procedure

outlined in the detailed offer document.

BANKERS

A Fund's activities involve dealing with money on a continuous basis

primarily with respects to buying and selling units, paying for

investment made, receiving the proceeds on sale of investment and

discharging its obligations towards operating expenses. A fund's

bankers therefore play.

HOW MUTUAL FUND WORKS

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The flow chart below describes broadly the working of a mutual

fund.

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Regulatory Aspect

1) Investment in debt instrument should be only in rated debt instrument not

below investment grade rated by a credit rating agency authorized to carry

such activity under the act.

2) No mutual fund under all its scheme should own more than 10 % of any

company’s paid up capital carrying voting rights.

3) Transfers of investment from one scheme to another in the same mutual fund

shall be allowed only if

a) Such transfers are done at the prevailing market price for quoted

instrument on spot basis.

b) The securities so transfers shall be in conformity with the investment

objective of the scheme to which such transfer has been made.

4) A scheme may invest in another scheme under the same AMC or any other

mutual fund without charging any fees, provided that aggregate interscheme

investment made by all scheme under the same management or in scheme

under the management of any other AMC shall not exceed five per cent of

the NAV of the mutual fund.

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5) The initial issue expenses in respect of any scheme may not exceed six per

cent of the funds raised under the scheme.

6) Every mutual fund shall get the securities purchased or transferred in the

name of the mutual fund on account of the concerned scheme, wherever

investment are intended to be of long-term nature.

7) 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.

8) Every mutual fund shall be 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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Who can invest in mutual funds in India?

The following people can invest in Mutual funds in India:

Residents including:

Resident Indian Individuals

Indian Companies

Indian Trusts / Charitable Institutions

Banks

Non-Banking Finance Companies

Insurance Companies

Provident funds

Non Residents including

Non Residents Indian

Other Corporate Bodies (OCBs)

Foreign Entities, viz.

Foreign Institutional Investors (FIIS) registered with SEBI.

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Advantages of Investment in Mutual Fund

Mutual Funds offer several benefits to an investor that unmatched by the

other investment options. The major benefits are good post-tax returns and

reasonable safety, the other benefits in investing in Mutual Funds are

PROFESSIONAL MANAGEMENT:

Mutual Funds employ the services of experienced and skilled professionals

and dedicated investment research team. The whole team analyses the

performance and balance sheet of companies and selects them to achieve the

objectives of the scheme.

POTENTIAL RETURN:

Mutual Funds have the potential to provide a higher return to an investor

than any other option over a reasonable period of time.

DIVERSIFICATION:

Mutual Funds invest in a number of companies across a wide cross section

of industries and sectors.

LIQUIDITY:

The investor can get the money promptly at the net asset value related prices

from the Mutual Funds open-ended schemes. In close-ended schemes, the

units can be sold on a stock exchange at the prevailing market price.

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TRANSPARENCY:

Mutual Funds have to disclose their holdings, investment pattern and the

necessary information before all investors under a regulation framework.

FLEXIBILITY:

Investment in Mutual Funds offers a lot of flexibility with features of

schemes such as regular investment plan, regular withdrawal plans and

dividend reinvestment plans enabling systematic investment or withdrawal

of funds.

AFFORDABILITY:

Small investors with low investment fund are unable to high-grade or blue

chip stocks. An investor through Mutual Funds can be benefited from a

portfolio including of high priced stock..

WELL REGULATED:

All Mutual Funds are registered with SEBI, and SEBI acts a watchdog, so

the Mutual Funds are well regulated

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Disadvantages of Mutual Funds

FLUCTUATING RETURNS:

Mutual funds are like many other investments without a guaranteed return.

There is always the possibility that the value of your mutual fund will

depreciate. Unlike fixed-income products, such as bonds and Treasury bills,

mutual funds experience price fluctuations along with the stocks that make

up the fund.

DIVERSIFICATION:

Although diversification is one of the keys to successful investing, many

mutual fund investors tend to over diversify. The idea of diversification is to

reduce the risks associated with holding a single security; over

diversification (also known as diworsification) occurs when investors

acquire many funds that are highly related and so don't get the risk reducing

benefits of diversification.

CASH, CASH AND MORE CASH:

Mutual funds pool money from thousands of investors, so everyday

investors are putting money into the fund as well as withdrawing

investments. To maintain liquidity and the capacity to accommodate

withdrawals, funds typically have to keep a large portion of their portfolio as

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cash. Having ample cash is great for liquidity, but money sitting around as

cash is not working for you and thus is not very advantageous.

COSTS:

In mutual funds the fees are classified into two categories: shareholder fees

and annual fund-operating fees.

The shareholder fees, in the forms of loads and redemption fees are paid

directly by shareholders purchasing or selling the funds. The annual fund

operating fees are charged as an annual percentage - usually ranging from 1-

3%. These fees are assessed to mutual fund investors regardless of the

performance of the fund. When the fund doesn't make money these fees only

magnify losses.

MISLEADING ADVERTISEMENTS:

The misleading advertisements of different funds can guide investors down

the wrong path. Some funds may be incorrectly labeled as growth funds,

while others are classified as small-cap or income.

EVALUATING FUNDS:

Another disadvantage of mutual funds is the difficulty they pose for

investors interested in researching and evaluating the different funds. Unlike

stocks, mutual funds do not offer investors the opportunity to compare the

P/E ratio, sales growth, earnings per share, etc.

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TAX ASPECT OF MUTUAL FUND

DIVIDEND MADE TAX-FREE

Dividend received from a domestic company and income distributed

by UTI-I or any MF, to its unit holders has been made tax-free from

1.4.03 onwards. However, dividend declared, distributed or paid by

such sources shall be charged a distribution tax of @16.995% flat.

This distribution tax is in addition to the normal income tax payable by

them.

CAPITAL GAIN TAX:

Capital gains are generated through the sale of stocks, bonds and

other investments, which have appreciated in value, from the fund’s

portfolio. There are no capital grain tax on MF and stock market.

While STCG are subject to Tax@10% even traded through stock

exchange and security from action tax has been paid. Unquated

shares/ MF are subject to tax at normal rate of tax.

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INCOME RECEIVED FROM MUTUAL FUND:

The Internal Revenue Service might depend upon the nature of your

mutual fund investment. Generally, most income generated from a

mutual fund account, with the exception of tax-exempt money market

or municipal bond funds, is subject to federal taxes as ordinary

income or capital gains

WEALTH TAX:

Under sec 2(1)(e) of Wealth tax Act it is not treated as an asset.

Therefore this is exempted from tax liability.

GIFT TAX:

Mutual Fund may be given as a gift and no tax is applicable by doner

or donee

TDS ON REDEMPTION:

No TDS is required to be deducted from capital gain at the time of

redemption in case of mutual fund.

TAX BENEFITS ON INVESTMENT IN MUTUAL FUND:

(1)100% Income Tax Exemption on all Mutual Fund dividends.

(2)Capital Gains tax to be lower of –

10% on the capital gains without factoring indexation benefits and

20% on the capital gains after factoring indexation benefits.

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(3)Open-end funds with equity exposure of more than 50% are

exempt of dividend tax for a period of 3 years from 1999-2000.

Another Investment Avenue featuring in the list of “eligible”

instruments is the Equity Linked Saving Scheme or tax saving funds.

Simply put, these are mutual fund schemes wherein investment upto

Rs 100,000 qualify for Section 80 benefits. Investors are given the

unique opportunity to invest in an equity-linked product and still claim

tax benefits on the same; which is quite a departure from

conventional tax saving instruments. Tax saving funds have a

mandatory 3-Yr lock in period, which distinguishes them from

conventional equity-oriented funds, which have no constraints on

liquidity.

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Tax saving funds: Smart long-term performers!

Tax Saving Funds NAV (Rs) 1-Yr 3-Yr 5-Yr SD SR

HDFC LONG TERM

ADV. 46.63 41.52% 68.36% - 6.17%

0.76

%

BIRLA 35.50 19.55% 55.01% 12.10% 7.23%0.62

%

UTI 32.45 47.12% 51.95% 0.13% 7.96%0.64

%

PRU ICICI TAX 41.91 30.89% 51.93% 15.76% 7.93%0.59

%

HDFC TAX SAVER 61.15 42.46% 51.40% - 5.72%0.78

%

(Source: Credence Analytics. NAV data as on 2007 fsys trwuitr.

Growth over 1-Yr is compounded annualized)

(The Sharpe Ratio is a measure of the returns offered by the

fund vis-à-vis those offered by a risk-free instrument) (Standard

deviation highlights the element of risk associated with the

fund.)

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MUTUAL FUNDS IN INDIA

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SIX AMC’S IN MUTUAL FUNDS

KARVY

UTI MUTUL FUND

BIRLA MUTUL FUND

HDFC MUTUL FUND

RELIANCE MUTUL FUND

ICICI PRU. MUTUL FUND

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OVERVIEW

KARVY, is a premier integrated financial services provider, and

ranked among the top five in the country in all its business segments,

services over 20 million individual investors in various capacities, and

provides investor services to over 300 corporates, comprising the

who's who of Corporate India. KARVY covers the entire spectrum of

financial services such as Stock broking, Depository Participants,

Distribution of financial products like mutual funds, bonds, fixed

deposit, Merchant Banking & Corporate Finance, Insurance Broking,

Commodities Broking, Realty Services, Personal Finance Advisory

Services, placement of equity, IPOs, among others. Karvy has a

professional management team and ranks among the best in

technology, operations, and more importantly, in research of various

industrial segments.

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Karvy – Early Days

The birth of Karvy was on a modest scale in 1981. It began with the

vision and enterprise of a small group of practicing Chartered

Accountants who founded the flagship company …Karvy Consultants

Limited. We started with consulting and financial accounting

automation, and carved inroads into the field of registry and share

accounting by 1985. Since then, we have utilized our experience and

superlative expertise to go from strength to strength…to better our

services, to provide new ones, to innovate, diversify and in the

process, evolved Karvy as one of India’s premier integrated financial

service enterprise.

Thus over the last 20 years Karvy has traveled the success route,

towards building a reputation as an integrated financial services

provider, offering a wide spectrum of services. And we have made

this journey by taking the route of quality service, path breaking

innovations in service, versatility in service and finally…totality in

service.

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Our highly qualified manpower, cutting-edge technology,

comprehensive infrastructure and total customer-focus has secured

for us the position of an emerging financial services giant enjoying the

confidence and support of an enviable clientele across diverse fields

in the financial world.

Our values and vision of attaining total competence in our servicing

has served as the building block for creating a great financial

enterprise, which stands solid on our fortresses of financial strength -

our various companies.

With the experience of years of holistic financial servicing behind us

and years of complete expertise in the industry to look forward to, we

have now emerged as a premier integrated financial services

provider.

And today, we can look with pride at the fruits of our mastery and

experience – comprehensive financial services that are competently

segregated to service and manage a diverse range of customer

requirements.

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The Karvy Credo

Our Clients. Our Focus

Clients are the reason for our being.

Personalized service, professional care; pro-activeness are the

values that help us nurture enduring relationships with our clients.

espect for the individual

Each and every individual is an essential building block of our

organization.

We are the kiln that hones individuals to perfection. Be they our

employees, shareholders or investors. We do so by upholding their

dignity & pride, inculcating trust and achieving a sensitive balance of

heir professional and personal lives.

Teamwork

None of us is more important than all of us.

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Each team member is the face of Karvy. Together we offer diverse

services with speed, accuracy and quality to deliver only one product:

excellence. Transparency, co-operation, invaluable individual

contributions for a collective goal, and respecting individual

uniqueness within a corporate whole, is how we deliver again and

again.

Responsible Citizenship

A social balance sheet is as rewarding as a business one.

As a responsible corporate citizen, our duty is to foster a better

environment in the society where we live and work. Abiding by its

norms, and behaving responsibly towards the environment, are some

of our growing initiatives towards realizing it.

Integrity

Everything else is secondary.

Professional and personal ethics are our bedrock. We take pride in an environment that

encourages honesty and the opportunity to learn from failures than camouflage them. We

insist on consistency between works and actions.

KARVY CONSULTANTS LIMITED

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As the flagship company of the Karvy Group, Karvy Consultants

Limited has always remained at the helm of organizational affairs,

pioneering business policies, work ethic and channels of progress.

Having emerged as a leader in the registry business, the first of the

businesses that we ventured into, we have now transferred this

business into a joint venture with Computershare Limited of Australia,

the world’s largest registrar. With the advent of depositories in the

Indian capital market and the relationships that we have created in

the registry business, we believe that we were best positioned to

venture into this activity as a Depository Participant. We were one of

the early entrants registered as Depository Participant with NSDL

(National Securities Depository Limited), the first Depository in the

country and then with CDSL (Central Depository Services Limited).

Today, we service over 6 lakhs customer accounts in this business

spread across over 250 cities/towns in India and are ranked amongst

the largest Depository Participants in the country. With a growing

secondary market presence, we have transferred this business to

43

Karvy Stock Broking Limited (KSBL), our associate and a member of

NSE, BSE and HSE.

IT enabled services

Our Technology Services division forms the ideal platform to unleash

our technology initiatives and make our presence felt on the Internet.

Our past achievements include many quality websites designed,

developed and deployed by us. We also possess our own web

hosting facilities with dedicated bandwidth and a state-of-the-art

server farm (data center) with services functioning on a variety of

operating platforms such as Windows, Solaris, Linux and Unix.

The corporate website of the company, “www.karvy.com”, gives

access to in-depth information on financial matters including Mutual

Funds, IPOs, Fixed Income Schemes, Insurance, Stock Market and

much more. A link called ‘Resource Center’, devoted solely to

research conducted by our team of experts on various financial

aspects like ‘Sector Research’, deals exclusively with in-depth

analysis of the key sectors of the Indian economy. Besides, a host of

other links like ‘My Portfolio’ which acts as a personalized and

44

customized financial measure, makes this site extremely informative

about investment options, market trends, news as also about our

company and each of the services offered here.

45

KARVY STOCK BROKING LIMITED

Stock Broking Services | Distribution of Financial Products |

Depository Participants | Advisory Services | Research | Private

Client Group

Member - Natio nal Stock Exchange (NSE), The Bombay Stock

Exchange (BSE), and The Hyderabad Stock Exchange (HSE).

Karvy Stock Broking Limited, one of the cornerstones of the Karvy

edifice, flows freely towards attaining diverse goals of the customer

through varied services. Creating a plethora of opportunities for the

customer by opening up investment vistas backed by research-based

advisory services. Here, growth knows no limits and success

recognizes no boundaries. Helping the customer create waves in his

portfolio and empowering the investor completely is the ultimate goal.

46

STOCK BROKING SERVICES

It is an undisputed fact that the stock market is unpredictable and yet

enjoys a high success rate as a wealth management and wealth

accumulation option. The difference between unpredictability and a

safety anchor in the market is provided by in-depth knowledge of

market functioning and changing trends, planning with foresight and

choosing one’s options with care. This is what we provide in

our Stock Broking services.

We offer services that are beyond just a medium for buying and

selling stocks and shares. Instead we provide services which are

multi dimensional and multi-focused in their scope. There are several

advantages in utilizing our Stock Broking services, which are the

reasons why it is one of the best in the country.

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We offer trading on a vast platform ; National Stock Exchange,

Bombay Stock Exchange and Hyderabad Stock Exchange. More

importantly, we make trading safe to the maximum possible extent,

by accounting for several risk factors and planning accordingly. We

are assisted in this task by our in-depth research, constant feedback

and sound advisory facilities. Our highly skilled research team,

comprising of technical analysts as well as fundamental specialists,

secure result-oriented information on market trends, market analysis

and market predictions. This crucial information is given as a constant

feedback to our customers, through daily reports delivered thrice daily

; The Pre-session Report, where market scenario for the day is

predicted, The Mid-session Report, timed to arrive during lunch break

, where the market forecast for the rest of the day is given and The

Post-session Report, the final report for the day, where the market

and the report itself is reviewed. To add to this repository of

information, we publish a monthly magazine “Karvy ; The

Finapolis”, which analyzes the latest stock market trends and

takes a close look at the various investment options, and products

available in the market, while a weekly report, called “ Karvy

Bazaar Baatein”, keeps you more informed on the immediate

48

trends in the stock market. In addition, our specific industry reports

give comprehensive information on various industries. Besides this,

we also offer special portfolio analysis packages that provide daily

technical advice on scrips for successful portfolio management and

provide customized advisory services to help you make the right

financial moves that are specifically suited to your portfolio.

Our Stock Broking services are widely networked across India, with

the number of our trading terminals providing retail stock broking

facilities. Our services have increasingly offered customer oriented

convenience, which we provide to a spectrum of investors, high-

networth or otherwise, with equal dedication and competence.

But true to our spirit, this success is not our final destination, but just

a platform to launch further enhanced quality services to provide you

the latest in convenient, customer-friendly stock management.

Over the years we have ensured that the trust of our customers is our

biggest returns. Factors such as our success in the Electronic

custody business has helped build on our tradition of trust even more.

Consequentially our retail client base expanded very fast.

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To empower the investor further we have made serious efforts to

ensure that our research calls are disseminated systematically to all

our stock broking clients through various delivery channels like email,

chat, SMS, phone calls etc.

Our foray into commodities broking has been path breaking and we

are in the process of converting existing traders in commodities into

the more organized mainstream of trading in commodity futures, both

as a trading and risk hedging mechanism.

In the future, our focus will be on the emerging businesses and to

meet this objective, we have enhanced our manpower and revitalized

our knowledge base with enhances focus on Futures and Options as

well as the commodities business.

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Depository Participants

The onset of the technology revolution in financial services Industry

saw the emergence of Karvy as an electronic custodian registered

with National Securities Depository Ltd (NSDL) and Central

Securities Depository Ltd (CSDL) in 1998. Karvy set standards

enabling further comfort to the investor by promoting paperless

trading across the country and emerged as the top 3 Depository

Participants in the country in terms of customer serviced.

Offering a wide trading platform with a dual membership at both

NSDL and CDSL, we are a powerful medium for trading and

settlement of dematerialized shares. We have established live DPMs,

Internet access to accounts and an easier transaction process in

order to offer more convenience to individual and corporate investors.

A team of professional and the latest technological expertise

51

allocated exclusively to our demat division including technological

enhancements like SPEED-e, make our response time quick and our

delivery impeccable. A wide national network makes our efficiencies

accessible to all.

52

The paradigm shift from pure selling to knowledge based selling

drives the business today. With our wide portfolio offerings, we

occupy all segments in the retail financial services industry.

A 1600 team of highly qualified and dedicated professionals drawn

from the best of academic and professional backgrounds are

committed to maintaining high levels of client service delivery. This

has propelled us to a position among the top distributors for equity

and debt issues with an estimated market share of 15% in terms of

applications mobilized, besides being established as the leading

procurer in all public issues.

53

Distribution of Financial Products

To further tap the immense growth potential in the capital markets we

enhanced the scope of our retail brand, Karvy – the Finapolis ,

thereby providing planning and advisory services to the mass

affluent. Here we understand the customer needs and lifestyle in the

context of present earnings and provide adequate advisory services

that will necessarily help in creating wealth. Judicious planning that is

customized to meet the future needs of the customer deliver a service

that is exemplary. The market-savvy and the ignorant investors, both

find this service very satisfactory. The edge that we have over

competition is our portfolio of offerings and our professional expertise.

The investment planning for each customer is done with an unbiased

attitude so that the service is truly customized.

Our monthly magazine, Finapolis, provides up-dated market

information on market trends, investment options, opinions etc. Thus

empowering the investor to base every financial move on rational

thought and prudent analysis and embark on the path to wealth

creation.

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Under our retail brand ‘Karvy – the Finapolis', we deliver advisory services to a cross-

section of customers. The service is backed by a team of dedicated and expert

professionals with varied experience and background in handling investment portfolios.

They are continually engaged in designing the right investment portfolio for each

customer according to individual needs and budget considerations with a comprehensive

support system that focuses on trading customers' portfolios and providing valuable

inputs, monitoring and managing the portfolio through varied technological initiatives.

This is made possible by the expertise we have gained in the business over the years.

Another venture towards being investor-friendly is the circulation of a monthly magazine

called ‘Karvy - the Finapolis'. Covering the latest of market news, trends, investment

schemes and research-based opinions from experts in various financial fields.

Private Client Group

This specialized division was set up to cater to the high net worth

individuals and institutional clients keeping in mind that they require a

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Advisory Services

different kind of financial planning and management that will augment

not just existing finances but their life-style as well. Here we follow a

hard-nosed business approach with the soft touch of dedicated

customer care and personalized attention.

For this purpose we offer a comprehensive and personalized service

that encompasses planning and protection of finances, planning of

business needs and retirement needs and a host of other services, all

provided on a one-to-one basis.

Our research reports have been widely appreciated by this segment. The delivery and

support modules have been fine tuned by giving our clients access to online portfolio

information, constant updates on their portfolios as well as value-added advise on

portfolio churning, sector switches etc. The investment recommendations given by our

research team in the cash market has enjoyed a high success rate.

KARVY INVESTORS SERVICES LIMITED

Merchant Banking

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Recognized as a leading merchant banker in the country, we are

registered with SEBI as a Category I merchant banker. This

reputation was built by capitalizing on opportunities in corporate

consolidations, mergers and acquisitions and corporate restructuring,

which have earned us the reputation of a merchant banker. Raising

resources for corporate or Government Undertaking successfully over

the past two decades have given us the confidence to renew our

focus in this sector.

Our quality professional team and our work-oriented dedication have

propelled us to offer value-added corporate financial services and act

as a professional navigator for long term growth of our clients, who

include leading corporates, State Governments, foreign institutional

investors, public and private sector companies and banks, in Indian

and global markets.

We have also emerged as a trailblazer in the arena of relationships,

both at the customer and trade levels because of our unshakable

integrity, seamless service and innovative solutions that are tuned to

meet varied needs. Our team of committed industry specialists,

having extensive experience in capital markets, further nurtures this

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relationship.

Our financial advice and assistance in restructuring, divestitures,

acquisitions, de-mergers, spin-offs, joint ventures, privatization and

takeover defense mechanisms have elevated our relationship with

the client to one based on unshakable trust and confidence.

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KARVY COMPUTERSHARE PVT LIMITED

Mutual Fund Services | Issue Registry | Corporate Shareholder

Services

We have traversed wide spaces to tie up with the world’s largest

transfer agent, the leading Australian company, Computershare

Limited. The company that services more than 75 million

shareholders across 7000 corporate clients and makes its presence

felt in over 12 countries across 5 continents has entered into a 50-50

joint venture with us.

With our management team completely transferred to this new entity,

we will aim to enrich the financial services industry than before. The

future holds new arenas of client servicing and contemporary and

relevant technologies as we are geared to deliver better value and

foster bigger investments in the business. The worldwide network of

Computershare will hold us in good stead as we expect to adopt

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international standards in addition to leveraging the best of

technologies from around the world.

Excellence has to be the order of the day when two companies with

such similar ideologies of growth, vision and competence, get

together.

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MUTUAL FUND SERVICES

We have attained a position of immense strength as a provider of

across-the-board transfer agency services to AMCs, Distributors and

Investors.

Nearly 40% of the top-notch AMCs including prestigious clients like

Deutsche AMC and UTI swear by the quality and range of services

that we offer. Besides providing the entire back office processing, we

provide the link between various Mutual Funds and the investor,

including services to the distributor, the prime channel in this

operation.

Carrying the ‘limitless' ideology forward, we have explored new

dimensions in every aspect of Mutual Fund servicing right from

volume management, cost effective pricing, delivery in the least

turnaround time, efficient back-office and front-office operations to

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customized service. We have been with the AMCs every step of the

way, helping them serve their investors better by offering them a

diverse and customized range of services. The ‘first to market'

approach that is our anthem has earned us the reputation of an

innovative service provider with a visionary bent of mind.

Our service enhancements such as ‘Karvy Converz', a full-fledged call center, a top-line

website (www.karvymfs.com), the ‘m-investor' and many more, creating a galaxy of

customer advantages.

Issue Registry

In our voyage towards becoming the largest transaction-processing

house in the Indian Corporate segment, we have mobilized funds for

numerous corporate, Karvy has emerged as the largest transaction-

processing house for the Indian Corporate sector. With an experience

of handling over 700 issues, Karvy today, has the ability to execute

voluminous transactions and hard-core expertise in technology

applications have gained us the No.1 slot in the business. Karvy is

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the first Registry Company to receive ISO 9002 certification in India

that stands testimony to its stature.

Karvy has the backing of skilled human resources complemented by

requisite technological packages to ensure a faster processing

capability. Karvy has the benefit of a good synergy between

depositories and registry that enables faster resolution to related

customer queries. Apart from its unique investor servicing presence

in all the phases of a public Issue, it is actively coordinating with both

the main depositories to develop special models to enable the

customer to access depository (NSDL, CDSL) services during an

IPO.

Our trust-worthy reputation, competent manpower and high-end

technology and infrastructure are the solid foundations on which our

success is built.

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Karvy has been a customer centric company since its inception.

Karvy offers a single platform servicing multiple financial instruments

in its bid to offer complete financial solutions to the varying needs of

both corporate and retail investors where an extensive range of

services are provided with great volume-management capability.

Today, Karvy is recognized as a company that can exceed customer

expectations which is the reason for the loyalty of customers towards

Karvy for all his financial needs. An opinion poll commissioned by

“The Merchant Banker Update” and conducted by the reputed market

research agency, MARG revealed that Karvy was considered the

“Most Admired” in the registrar category among financial services

companies.

We have grown from being a pure transaction processing business, to one of complete

shareholder solutions.

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CORPORATE SHAREHOLDER SERVICES

KARVY GLOBAL SERVICES LIMITED

The specialist Business Process Outsourcing unit of the Karvy Group.

The legacy of expertise and experience in financial services of the

Karvy Group serves us well as we enter the global arena with the

confidence of being able to deliver and deliver well.

Here we offer several delivery models on the understanding that

business needs are unique and therefore only a customized service

could possibly fit the bill. Our service matrix has permutations and

combinations that create several options to choose from.

Be it in re-engineering and managing processes or delivering new

efficiencies, our service meets up to the most stringent of

international standards. Our outsourcing models are designed for the

global customer and are backed by sound corporate and operations

philosophies, and domain expertise. Providing productivity

improvements, operational cost control, cost savings, improved

accountability and a whole gamut of other advantages.

65

We operate in the core market segments that have emerging

requirements for specialized services. Our wide vertical market

coverage includes Banking, Financial and Insurance Services (BFIS),

Retail and Merchandising, Leisure and Entertainment, Energy and

Utility and Healthcare.

Our horizontal offerings do justice to our stance as a comprehensive

BPO unit and include a variety of services in Finance and Accounting

Outsourcing Operations, Human Resource Outsourcing Operations,

Research and Analytics Outsourcing Operations and Insurance Back

Office Outsourcing Operations

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KARVY COMTRADE LIMITED

At Karvy Commodities, we are focused on taking commodities trading

to new dimensions of reliability and profitability. We have made

commodities trading, an essentially age-old practice, into a

sophisticated and scientific investment option.

Here we enable trade in all goods and products of agricultural and

mineral origin that include lucrative commodities like gold and silver

and popular items like oil, pulses and cotton through a well-

systematized trading platform.

Our technological and infrastructural strengths and especially our

street-smart skills make us an ideal broker. Our service matrix is

holistic with a gamut of advantages, the first and foremost being our

legacy of human resources, technology and infrastructure that comes

from being part of the Karvy Group.

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Our wide national network, spanning the length and breadth of India,

further supports these advantages. Regular trading workshops and

seminars are conducted to hone trading strategies to perfection.

Every move made is a calculated one, based on reliable research

that is converted into valuable information through daily, weekly and

monthly newsletters, calls and intraday alerts. Further, personalized

service is provided here by a dedicated team committed to giving

hassle-free service while the brokerage rates offered are extremely

competitive.

Our commitment to excel in this sector stems from the immense

importance that commodities broking has to a cross-section of

investors – farmers, exporters, importers, manufacturers and

the Government of India itself.

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KARVY INSURANCE BROKING PRIVATE LIMITED

At Karvy Insurance Broking Pvt. Ltd., we provide both life and non-life

insurance products to retail individuals, high net-worth clients and

corporates. With the opening up of the insurance sector and with a

large number of private players in the business, we are in a position

to provide tailor made policies for different segments of customers. In

our journey to emerge as a personal finance advisor, we will be better

positioned to leverage our relationships with the product providers

and place the requirements of our customers appropriately with the

product providers. With Indian markets seeing a sea change, both in

terms of investment pattern and attitude of investors, insurance is no

more seen as only a tax saving product but also as an investment

product. By setting up a separate entity, we would be positioned to

provide the best of the products available in this business to our

customers.

Our wide national network, spanning the length and breadth of India,

further supports these advantages. Further, personalized service is

provided here by a dedicated team committed in giving hassle-free

service to the clients.

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KARVY REALTY & SERVICES (INDIA) LIMITED

KARVY Realty & Services (India) Limited (KRSIL) is engaged in the

business of real estate and property services offering value added

property services and offers individuals and establishments a myriad

of options across investments, financing and advisory services in the

realty sector.

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KARVY CONSULTANTS LIMITED

Board of Directors

Mr. C Parthasarathy

Chairman 

Mr. M Yugandhar

Managing Director 

Mr. M S Ramakrishna

Director 

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Karvy Stock Broking Limited

Board of Directors

Mr. C Parthasarathy

Director

Mr. M Yugandhar

Director 

Mr. M S Ramakrishna

Director   

Mr. Akash Mehta

Director 

Mr. Peter Wing Hung So

Director 

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Karvy Investors Services Limited

Board of Directors

Mr. C Parthasarathy

Managing Director

Mr. M Yugandhar

Director 

Mr. M S Ramakrishna

Director 

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KARVY COMPUTERSHRE PRIVATE LIMITED

Board of Directors

William Stuart Crosby

Chairman

Mr. C Parthasarathy

Managing Director

Mr. M Yugandhar

Managing Director

Mr. M S Ramakrishna

Director

Chandra Balaraman

Director

James wong

Director

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KARVY GLOBAL SERVICES LIMITED

Board of Directors

Mr. C Parthasarathy

Director 

Mr. M Yugandhar

Director 

Mr. M S Ramakrishna

Director

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KARVY COMTRADE LIMITED

Board of Directors

Mr. C Parthasarathy

Chairman

Mr. M Yugandhar

Director 

Mr. M S Ramakrishna

Director 

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KARVY INSURANCE BROKING PRIVATE LIMITED

Board of Directors

Mr. C Parthasarathy

Chairman

Mr. M Yugandhar

Director 

Mr. M S Ramakrishna

Director 

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ACHIEVEMENTS

Among the top 5 stock brokers in India (4% of NSE volumes)

India's No. 1 Registrar & Securities Transfer Agents

Among the to top 3 Depository Participants

Largest Network of Branches & Business Associates

ISO 9002 certified operations by DNV

Among top 10 Investment bankers

Largest Distributor of Financial Products

Adjudged as one of the top 50 IT uses in India by MIS Asia

Full Fledged IT driven operations

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UTI MUTUL FUND

 Introduction

Vision

To be the most Preferred Mutual Fund.

Our mission is to make UTI Mutual Fund:

 • The most trusted brand, admired by all stakeholders

 • The largest and most efficient money manager with global

presence

 • The best in class customer service provider

 • The most preferred employer

 • The most innovative and best wealth creator

 • A socially responsible organisation known for best corporate

governance

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Genesis

January 14, 2003 is when UTI Mutual Fund started to pave its path

following the vision of UTI Asset Management Co. Ltd. (UTIAMC),

which was appointed by UTI Trustee Co, Pvt. Ltd. for managing the

schemes of UTI Mutual Fund and the schemes transferred/migrated

from the erstwhile Unit Trust of India.

UTIAMC provides professionally managed back office support for all

business services of UTI Mutual Fund in accordance with the

provisions of the Investment Management Agreement, the Trust

Deed, the SEBI (Mutual Funds) Regulations and the objectives of

the schemes. State-of-the-art systems and communications are in

place to ensure a seamless flow across the various activities

undertaken by UTIMF.

Since February 3, 2004, UTIAMC is also a registered portfolio

manager under the SEBI (Portfolio Managers) Regulations, 1993 for

undertaking portfolio management services. UTIAMC also acts as

the manager and marketer to offshore funds through its 100 %

subsidiary, UTI International Limited, registered in Guernsey,

Channel Islands.

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Assets Under Management

UTIAMC presently manages a corpus of over Rs. 67,978 Crores* as

on 30th June 2009 (source: www.amfiindia.com). UTI Mutual Fund

has a track record of managing a variety of schemes catering to the

needs of every class of citizens. It has a nationwide network

consisting 114 UTI Financial Centres (UFCs) and UTI International

offices in London, Dubai and Bahrain. With a view to reach to

common investors at district level, 1 satellite office have also been

opened.

UTIAMC has a well-qualified, professional fund management team,

which has been fully empowered to manage funds with greater

efficiency and accountability in the sole interest of the unit holders.

The fund managers are ably supported by a strong in-house

securities research department. To ensure investors’ interests,  a

risk management department is also in operation.

Reliability

UTIMF has consistently reset and upgraded transparency standards.

All the branches, UFCs and registrar offices are connected on a

robust IT network to ensure cost-effective quick and efficient service.

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All these have evolved UTIMF to position as a dynamic, responsive,

restructured, efficient and transparent entity, fully compliant with

SEBI regulations.

s received by UTI Mutual Fund

UTI MF CNBC Award 2009...more

UTI Mutual Fund sweeps ICRA mutual fund Award 2009...

UTI MF wins the Best Debt Fund House Award...

Golden Peacock Innovative Product/Service Award-2008...

Loyalty Awards - 2009 ...

Lipper Fund Awards09-UTI Mahila Unit-5 yrs...

Lipper Fund Awards09-UTI Mahila Unit-3 yrs...

Reader’s Digest Trusted Brand 2008...

Lipper Fund Awards - Gulf 2008...

Top Performing Infrastructure Fund -  Income ...

Brand loyalty Awards 2008...

Four ICRA 7 Star Gold Award...

Four ICRA 5 Star Award...

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ICRA Mutual Fund Award 2007...

Lipper Fund Awards 2007...

CRISIL-CNBC-TV18-Mutual Fund of the year Award 2007...

ICRA Mutual Fund Award 2006...

Lipper Fund Awards...

CNBC-TV18-BNP Par-ibas Mutual Fund of the year Award

2006...

CNBC-TV18-BNP Par-ibas Mutual Fund of the year Award...

ICRA online Mutual Fund Award: UTI NIFTY INDEX FUND

won the award for the year 2004...

CNBC India Mutual Fund of the Year Award...

UTI Nifty Index Fund wins Gold at ICRA Online...

UTI Dynamic Equity Fund wins Silver at ICRA Online...

UTI Growth Value Fund has been ranked by CRISIL...

Investment Philosophy

UTI Mutual Fund’s investment philosophy is to deliver

consistent and stable returns in the medium to long term with

a fairly lower volatility of fund returns compared to the broad

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market. It believes in having a balanced and well-diversified

portfolio for all the funds and a rigorous in-house research

based approach to all its investments. It is committed to adopt

and maintain good fund management practices and a process

based investment management.

UTI Mutual Fund follows an investment approach of giving as

equal an importance to asset allocation and sectoral

allocation, as is given to security selection while managing

any fund. It combines top-down and bottom-up approaches to

enable the portfolios/funds to adapt to different market

conditions so as to prevent missing an investment

opportunity.

In terms of its funds performance, UTI Mutual Fund aims to

consistently remain in the top quartile vis-à-vis the funds in

the peer group.

Mumbai

1st Feb 2003

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Sponsors

Three leading public sector banks – Bank of Baroda, Punjab National

Bank and State Bank of India and Life Insurance Corporation of India

(LIC), the largest public financial investment institution and life insurer

in India are the sponsors of UTI Mutual Fund.

Bank of Baroda:-

Bank of Baroda is a commercial bank performing activities in terms of

Banking Companies (Acquisition and Transfer of Undertakings Act

1970) under which the Undertaking of the Bank was taken over by

the Central Government. During the period since inception, it has

always maintained its practice of sound value based banking to

emerge as one of the premier public sector Banks of the country

today. It has a track record of uninterrupted profits since inception in

1908. The financial strength of the Bank and its long tradition of

efficient customer service are drawn substantially from the extensive

reach of its 2732 strong branch network (as of 31.03.2007) covering

almost every State and Union Territory in the Country. The Bank is

also one of the few Indian Banks with a formidable presence

85

overseas with 40 branches. Thus, the total branch network is 2,772

as at 31.03.2007.

Life Insurance Corporation of India

Life Insurance Corporation of India (LIC) is amongst the largest

insurance companies in the world, with 2048 branches and having a

Fund size of Rs.-5,60,806.33 crore.

Punjab National Bank

Punjab National Bank is a commercial bank performing activities in

terms of Banking Companies (Acquisition and Transfer of

Undertakings Act 1970) under which the Undertaking of the Bank was

taken over by the Central Government. The main object of the bank

under the said Act is as below:- An act to provide for the acquisition

and transfer of the undertaking of certain banking companies, having

regard to their size, resources coverage and organisation, in order to

further to control the heights of the economy, to meet progressively

and serve better, the needs of the development of the economy and

to promote the welfare of the people, in conformity with the policy of

the State towards securing the principles laid down in clause (b) and

86

(c) of Article 39 of the Constitution of India and for matter connected

therewith or incidental therein. As on 31.03.2007 Punjab National

Bank has 4539 domestic offices including 421 extension counters, 2

subsidiaries and a deposit size of Rs.1, 39,860 crores.

State Bank of India:

The State Bank of India is the largest public sector bank in India with

9517 branches in India and 83 offices in 32 countries worldwide. In

addition to this, SBI also has 21 subsidiaries.

The sponsors are not responsible nor liable for any loss resulting

from the operation of the scheme beyond the contribution of an

amount of Rs.10,000/- made by them towards setting up of the

Mutual Fund.

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UTI Asset Management Co. Ltd. (UTIAMC) is a company incorporated

under The Companies Act, 1956.

UTIAMC was appointed as the Asset Management Company of the UTI

Mutual Fund in terms of the Investment Management Agreement 

executed between UTI Trustee Co. Ltd. and UTIAMC on  December 9,

2002.  UTIAMC was registered by SEBI to act as the asset

management company for UTI Mutual Fund vide its letter of January 14,

2003.

The paid up capital of UTIAMC has been subscribed equally by four

sponsors: State Bank of India, Life Insurance Corporation of India, Bank

of Baroda and Punjab National Bank. UTIAMC, apart from managing

the schemes of UTI Mutual Fund, also manages the schemes

transferred/migrated from the erstwhile Unit Trust of India, in

accordance with the provisions of the Investment Management

Agreement, the Trust Deed, the SEBI (Mutual Funds) Regulations and

the objectives of the schemes.

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UTIAMC has also entered into a service agreement with the

Administrator of the Specified Undertaking of the Unit Trust of India

(SUUTI) to provide them with back office support for business

processes.

UTIAMC is also a registered Portfolio Manager under the SEBI

(Portfolio Managers) Regulations, 1993 since February 3, 2004 for

undertaking portfolio management services.

Subsidiaries

UTI International Ltd. (UTIIL) is a 100% subsidiary of UTIAMC,

registered in Guernsey, Channel Islands, which acts as the manager to

offshore funds and markets these offshore funds abroad. Towards

expansion of its activities, UTIIL  has signed a joint venture agreement

with  Shinsei Bank Ltd. of Japan  to set up UTI International (Singapore)

Pvt. Ltd.

UTIIL is focussed on  investment management and distribution of

financial products in the South East Asian region.  UTIIL  also manages

funds investing in other jurisdictions.

UTI Retirement Solutions Ltd. (UTIRSL), is a 100% subsidiary of

UTIAMC which was incorporated in December, 2007 and started

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operations w.e.f. March, 2008. UTIRSL has been set up to carry out the

operations as a Pension Fund Manager under the New Pension

System set up by Pension Fund Regulatory and Development Authority

(PFRDA).

UTIRSL was initially appointed by the NPS  to manage the pension

funds of the government employees. In March, 2009, the Company has

also been appointed by NPS for management of pension funds  for non-

government employees.

Directors of UTIAMC

Shri U. K. Sinha

Chairman & Managing Director

UTIAMC Ltd.

UTI Tower, ‘Gn’ Block

Bandra Kurla Complex

Bandra (East)

Mumbai - 400 051

Shri S. C. Bhargava

Non-Executive Chairman

OTC Exchange of India

Flat No.14, Queens Court

90

Maharshi Karve Road

Churchgate

Mumbai 400 020

Dr. K. C. Mishra

Director

National Insurance Academy

B2-32, Elite Empire

Balewadi

Pune - 411 045

Ms. Anita Ramachandran

Director & CEO

Cerebrus Consultants Pvt. Ltd.

13, Navroze Apartments

Bhulabhai Desai Road

Mumbai - 400 026

Shri Prithvi Haldea

Chairman & Managing Director

Praxis Consulting & Information

Services Pvt. Ltd.

C-101, Rishi Apartments

91

Alaknanda

New Delhi-110 019

Shri P. R. Khanna

Chartered Accountant

70, Sundar Nagar

New Delhi - 110 003

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RELIANCE MUTUAL FUND

Reliance Mutual Fund (RMF) is one of India’s leading Mutual Funds,

with Assets Under Management (AUM) of Rs. 93,532 crore (AUM as

on 29th Feb 08) and an investor base of over 65.73 Lakhs. Reliance

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

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

investors a well-rounded portfolio of products to meet varying investor

requirements and has presence in 115 cities across the country.

Reliance Mutual Fund constantly endeavors to launch innovative

products and customer service initiatives to increase value to

investors. "Reliance Mutual Fund schemes are managed by Reliance

Capital Asset Management Limited., a subsidiary of Reliance Capital

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

balance paid up capital being held by minority shareholders."Reliance

Capital Ltd. is one of India’s leading and fastest growing private

sector financial services companies, and ranks among the top 3

private sector financial services and banking companies, in terms of

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net worth. Reliance Capital Ltd. has interests in asset management,

life and general insurance, private equity and proprietary investments,

stock broking and other financial services.

Vision Statement

To be a globally respected wealth creator with an emphasis on

customer care and a culture of good corporate governance.

Mission Statement

To create and nurture a world-class, high performance

environment aimed at delighting our customers.

Corporate Governance

Our Corporate Governance Policy:

Reliance Capital Asset Management Ltd. has a vision of being a

leading player in the Mutual Fund business and has achieved

significant success and visibility in the market. However, an

imperative part of growth and visibility is adherence to Good Conduct

in the marketplace.

At Reliance Capital Asset Management Ltd., the implementation and

observance of ethical processes and policies has helped us in

standing up to the scrutiny of our domestic and internationalinvestors.

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Management :

The management at Reliance Capital Asset Management Ltd. is

committed to good Corporate Governance, which includes

transparency and timely dissemination of information to its investors

and unit holders. The Board of Directors of RCAM is a professional

body, including well-experienced and knowledgeable Independent

Members. Regular Audit Committee meetings are conducted to

review the operations and performance of the company.

Employees :

Reliance Capital Asset Management Ltd. has at present, a code of

conduct for all its officers. It has a clearly defined prohibition on

insider trading policy and regulations. The management believes in

the principles of propriety and utmost care is taken while handling

public money, making proper and adequate disclosures. All personnel

at Reliance Capital Asset Management Ltd are made aware of their

rights, obligations and duties as part of the Dealing Policy laid down

in terms of SEBI guidelines. They are taken through a well-designed

HR program, conducted to impart work ethics, the Code of Conduct,

information security, Internet and e-mail usage and a host of other

issues. One of the core objectives of Reliance Capital Asset

95

Management Ltd. is to identify issues considered sensitive by global

corporate standards, and implement policies/guidelines in conformity

with the best practices as an ongoing process. Reliance Capital Asset

Management Ltd. gives top priority to compliance in true letter and

spirit, fully understanding its fiduciary responsibilities.

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HDFC MUTUL FUND

About Us

HDFC Asset Management Company Limited (AMC)

HDFC Asset Management Company Ltd (AMC) was incorporated

under the Companies Act, 1956, on December 10, 1999, and was

approved to act as an Asset Management Company for the HDFC

Mutual Fund by SEBI vide its letter dated July 3, 2000.

The registered office of the AMC is situated at Ramon House, 3rd

Floor, H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate,

Mumbai - 400 020.

In terms of the Investment Management Agreement, the Trustee has

appointed the HDFC Asset Management Company Limited to 

manage the Mutual Fund. The paid up capital of the AMC is Rs.

25.161 crore.

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

Particulars % of the paid up equity capital

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Housing Development Finance Corporation Limited 60

Standard Life Investments Limited 40

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

Fund, following a review of its overall strategy, had decided to divest

its Asset Management business in India. The AMC had entered into

an agreement with ZIC to acquire the said business, subject to

necessary regulatory approvals.

On obtaining the regulatory approvals, the following Schemes of

Zurich India Mutual Fund have migrated to HDFC Mutual Fund on

June 19, 2003. These Schemes have been renamed as follows:

Former Name New Name

Zurich India Equity Fund HDFC Equity Fund

Zurich India Prudence Fund HDFC Prudence Fund

Zurich India Capital Builder Fund HDFC Capital Builder Fund

Zurich India TaxSaver Fund HDFC TaxSaver

Zurich India Top 200 Fund HDFC Top 200 Fund

Zurich India High Interest Fund HDFC High Interest Fund

Zurich India Liquidity Fund HDFC Cash Management Fund

Zurich India Sovereign Gilt Fund HDFC Sovereign Gilt Fund*

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

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

viz. HDFC Growth Fund (HGF), HDFC Balanced Fund (HBF), HDFC

Income Fund (HIF), HDFC Liquid Fund (HLF), HDFC Long Term

Advantage Fund (HLTAF), HDFC Children's Gift Fund (HDFC CGF),

HDFC Gilt Fund (HGILT), HDFC Short Term Plan (HSTP), HDFC

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

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

Builder Fund (HCBF), HDFC TaxSaver (HTS), HDFC Prudence Fund

(HPF), HDFC High Interest Fund (HHIF), HDFC Cash Management

Fund (HCMF), HDFC MF Monthly Income Plan (HMIP), HDFC Core

& Satellite Fund (HCSF), HDFC Multiple Yield Fund (HMYF), HDFC

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

2005 (HMYF-Plan 2005), HDFC Quarterly Interval Fund (HQIF) and

HDFC Arbitrage Fund (HAF).

The AMC is also managing 13 closed ended Schemes of the HDFC

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

Opportunities Fund, HDFC Infrastructure Fund, HDFC Fixed Maturity

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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, HDFC Fixed Maturity Plans - Series

VI, HFDC Fixed Maturity Plans - Series VII, HFDC Fixed Maturity

Plans - Series VIII, HFDC Fixed Maturity Plans - Series IX and HFDC

Fixed Maturity Plans - Series X.

The AMC is also providing portfolio management / advisory services

and such activities are not in conflict with the activities of the Mutual

Fund. The AMC has renewed its registration from SEBI vide

Registration No. - PM / INP000000506 dated December 8, 2006 to

act as a Portfolio Manager under the SEBI (Portfolio Managers)

Regulations, 1993. The Certificate of Registration is valid from

January 1, 2007 to December 31, 2009.

100

HDFC

HDFC

HDFC was incorporated under the Companies Act, 1956, on

December 10, 1999, and was approved to act as an Asset

Management Company for the HDFC Mutual Fund by SEBI vide its

letter dated June 30, 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 HDFC Asset Management Company Limited to

manage the Mutual Fund. The paid up capital of the AMC is Rs.

25.161 crore.

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

Particulars % of the paid up equity

capital

Housing Development Finance Corporation Limited 60

Standard Life Investments Limited 40

101

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

Fund, following a review of its overall strategy, had decided to divest

its Asset Management business in India. The AMC had entered into

an agreement with ZIC to acquire the said business, subject to

necessary regulatory approvals.

On obtaining the regulatory approvals, the following Schemes of

Zurich India Mutual Fund have migrated to HDFC Mutual Fund on

June 19, 2003. These Schemes have been renamed as follows:

Former Name New Name

Zurich India Capital Builder Fund HDFC Capital Builder Fund

Zurich India Equity Fund HDFC Equity Fund

Zurich India High Interest Fund HDFC High Interest Fund

Zurich India Liquidity Fund HDFC Cash Management Fund

Zurich India Prudence Fund HDFC Prudence Fund

Zurich India Sovereign Gilt Fund HDFC Sovereign Gilt Fund*

Zurich India TaxSaver Fund HDFC TaxSaver

Zurich India Top 200 Fund HDFC Top 200 Fund

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

The AMC is also providing portfolio management / advisory services

and such activities are not in conflict with the activities of the Mutual

Fund. The AMC has renewed its registration from SEBI vide

Registration No. - PM / INP000000506 dated December 8, 2006 to

act as a Portfolio Manager under the SEBI (Portfolio Managers)

Regulations, 1993. The Certificate of Registration is valid from

January 1, 2007 to December 31, 2009.

The Board of Directors of the HDFC Asset Management

Company Limited (AMC) consists of the following eminent

persons.

Mr. Deepak S. Parekh

Mr. N. Keith Skeoch

Mr. Keki M. Mistry

Mr. James Aird

Mr. P. M. Thampi

Mr. Humayun Dhanrajgir

Dr. Deepak B. Phatak

103

Mr. Hoshang S. Billimoria

Mr. Rajeshwar Raj Bajaaj

Mr. Vijay Merchant

Ms. Renu S. Karnad

Mr. Milind Barve

Mr. Deepak S. Parekh

Mr. Deepak Parekh, the Chairman of the Board, is associated with

HDFC Ltd. in his capacity as its Executive Chairman.

Mr. Parekh joined HDFC Ltd. in a senior management position in

1978. He was inducted as Wholetime Director of HDFC Ltd. in 1985

and was appointed as the Executive Chairman in 1993.

His other Directorships as on March 31, 2009 are as follows:

Company

Airport Authority of India Director

Bharat Bijlee Limited  Alternate Director

Borax Morarji Limited  Alternate Director

Castrol India Limited  Director

Exide Industries Limited  Alternate Director

GlaxoSmithKline Pharmaceuticals Limited  Chairman

104

HDFC ERGO General Insurance Company Limited  Chairman

HDFC Standard Life Insurance Company Limited Chairman

Hindustan Oil Exploration Corporation Limited  Director

Hindustan Unilever Limited  Director

Infrastructure Development Finance Company Limited Chairman

Lafarge India Pvt. Limited  Chairman

Mahindra & Mahindra Limited  Director

Satyam Computer Services Limited  Director

Siemens Limited  Chairman

The Indian Hotels Company Limited  Director

Zodiac Clothing Company Limited  Alternate Director

Mr. Parekh is a Fellow of the Institute of Chartered Accountants

(England & Wales).

Mr. N. Keith Skeoch

Mr. N. Keith Skeoch is associated with Standard Life Investments

Limited as its Chief Executive and is responsible for all company

business and investment operations within Standard Life Investments

Limited.

Mr. Skeoch joined Standard Life Investments Limited as Chief

105

Executive Officer from James Capel & Co (now HSBC Securities),

where he was employed from 1980 to 1999. From his first role at

James Capel as an International Economist, he went on to become

the Senior UK Economist in 1982 and Chief Economist two years

later. In 1993, he was appointed Director of Economics and Strategy

and was given the responsibilities of Managing Director, International

Equities in 1998.

His other Directorships as on March 31, 2009 are as follows:

106

ICICI PRU. MUTUL FUND

ICICI Prudential mutual fund is a joint venture between ICICI Bank, a

premier financial powerhouse, and Prudential plc, a leading

international financial services group headquartered in the United

Kingdom. ICICI Prudential was amongst the first private sector

insurance companies to begin operations in December 2000 after

receiving approval from Insurance Regulatory Development Authority

(IRDA).

ICICI Prudential's capital base stands at Rs. 20.26 billion with ICICI

Bank and Prudential plc holding 74% and 26% stake respectively. For

the past five years, ICICI Prudential has retained its position as the

No. 1 private life insurance in the country, with the wide range of

flexible products that meet the needs of the Indian customer at every

step in life. In the first quarter of financial year 2006-07 we have cross

the new milestone of insuring the lives of more than 2.5 million police

holders. Today our nation-wide team comprises of over 580 offices,

over 234000 advisors; and 22 bank assurance partners.

107

ICICI Prudential is also the only private life insurer in India to receive

a National Insurer Financial Strength rating of AAA (Ind) from Fitch

ratings. The AAA rating is the highest rating, and is a clear assurance

of ICICI Prudential's ability to meet its obligations to customers at the

time of maturity or claims. This rating is determined after a thorough

evolution of company’s financial processes, risk management

framework , product mix , market share, etc. Over the past five years

We have paid over 2100 claims amounting to more then Rs 26 crore

and taken several step to assure customers of quick and smooth

claims process .For the past five years, ICICI Prudential has retained

its position as the No. 1 private life insurer in the country, with a wide

range of flexible products that meet the needs of the Indian customer

at every step in life. We have once again maintained our leadership

position with a 32% market share amongst the private life insurance

companies ( figure as of Quarter 1,finantial year 2006-07)

108

MARKET SHARE OF ICICI PRUDENTIAL

Market Share Among Private Competitors

32%

16%11%10%

6%

7%6%

5% 5% 1%1%

ICICI Prudential Birla Sunlife HDFC Standrad Bajaj Allianz

MAX NYL TATA Aig O M Kotak AVIVA Life

ING Vysya Met Life AMP Sammar

DISTRIBUTION

ICICI Prudential has one of the largest distribution networks amongst

private life insurers in India with a network of over 234,000 advisors,

and having commenced operations in 271 cities and towns in India,

stretching from Bhuj in the west to Guwahati in the east, and Jammu

in the north to Trivandrum in the south.

The company has 22 bank assurance partners, having tie-ups with

ICICI Bank, of India, Federal Bank, South Indian Bank, Lord Krishna

109

Bank, all regional rural banks sponsored by Bank of India, as well as

some co-operative banks; as well as over 200 corporate agents and

brokers. It has also tied up with NGOs, MFIs and corporate for the

distribution of rural policies.

Board of Directors

The ICICI Prudential Life Insurance Company Limited Board

comprises reputed people from the finance industry both from India

and abroad.

• Mr. K.V. Kamath, Chairman

• Mr. Barry Stowe

• Mrs. Kalpana Morparia

• Mrs. Chanda Kochhar

• Mr. HT Phong

• Mr. M.P. Modi

• Mr. R Narayanan

• Mr. Keki Dadiseth

• Ms.Shikha Sharma, Managing Director

• Mr. N.S.Kannan, Executive Director

110

• Mr. Bhargav Dasgupta, Executive Director

Management Team

The ICICI Prudential Life Insurance Company Limited

Management team comprises reputed people from the

finance industry both from

India and abroad.

Ms. Shikha Sharma, Managing Director & CEO

Mr. N. S. Kannan, Executive Director

Mr. Bhargav Dasgupta, Executive Director

Ms. Anita Pai, EVP - Customer Service & Technology

Mr. Azim Mithani, Chief Actuary

Mr. Puneet Nanda , Chief Investments Officer

111

Vision & Values

Our vision:

To make ICICI Prudential the dominant Life and Pensions player built on trust by

world-class people and service.

This we hope to achieve by:

1-Understanding the needs of customers and offering them superior products

and service .

2- Leveraging technology to service customers quickly, efficiently and

conveniently.

3- Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to our policyholders

4-Providing an enabling environment to foster growth and learning for our

employees .

5-And above all, building transparency in all our dealings.

The success of the company will be founded in its unflinching commitment to 5

core values -- Integrity, Customer First, Boundary less, Ownership and Passion.

Each of the values describe what the company stands for, the qualities of our

people and the way we work.

We do believe that we are on the threshold of an exciting new opportunity, where

we can play a significant role in redefining and reshaping the sector. Given the

112

quality of our parentage and the commitment of our team, there are no limits to

our growth.

Our values :

Every member of the ICICI Prudential team is committed to 5 core values:

Integrity, Customer First, Boundary less, Ownership, and Passion. These values

shine forth in all we do, and have become the keystones of our success.

113

RESEARCH METHODOLOGY

This Research involves the collection of primary data through survey

approach because data is to be collected only by meeting worker of

mutual fund Company executives. Survey helps to know that what is

the strength of company means which worth, publicity and strength.

Approached executive through various means. We did cold calling,

targeted on Mutual fund. A meeting that talks about the career

opportunity being provided and the benefits that a what is the position

of company in India. Also did surveys, at places like Karvy, UTI, Birla,

HDFC, Reliance, ICICI pru with a questionnaire taking their

information.

Also since how many years was established your company in

Lucknow city. All this helps in judging who will be a better in 5 MNC’s

company’s and who fulfills the criteria we looking out for the most. We

mainly approached that company’s executive’s who answered truly.

114

RESEARCH INSTRUMENT

The research instrument used here for collecting primary data

is questionnaire. This has provided flexibility in substantial

Information from diversified people.

SAMPLING PLAN:

Sampling unit: Lucknow

Sample size : 120

Sampling Procedure

(a) Random sampling

(b) Stratified sampling: Existing executive in other

AMC’s companies Lucknow Region

Big sample size helps in getting more reliable result &

information about the respondents preferences.

CONTACT METHOD:

Following contact methods through which information was

gathered:

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In depth interview

IN-DEPTH INTERVIEW:

After collecting the data I made an appointment with

respondents for their detailed interview to check whether the

candidate have zeal to earn money by making relationship with

customers. Their qualification and work experience was also

checked.

DATA COLLECTION:

Primary Data: Data collected through market survey

and cold calling.

Secondary Data: Data collected from magazines,

yellow pages and from other indirect sources.

Primary Data: For collecting data I directly approached to

persons of different profile with questionnaire. I took the relevant

information out of them.

Primary data is the kind of data, which is collected by the investigator

himself for the purpose of the specific study. The data such collected

is original in character. The advantage of this method of collections

116

authentic.

For Primary data we did MNC’s Companies surveys where we

approached people through questionnaire, used posters & banners

(many people came enquiring & we got questionnaires filled on which

calls were made later, we also did cold calling on random numbers

telling people about the career opportunity & those that seemed

interested were called to the office for formal meeting. The method of

sampling was the random convenient sampling method.

MARKET SURVEY

We carried out various surveys where we approached executives of

ICICI Prudential, Birla, HDFC, Reliance. We approached executives

who appeared in interview and they showed interest in my

programme they are Branch Manager HDFC Mutual fund, cluster

head ICICI Pru and executive of UTI, Birla and Reliance mutual fund.

Their name & contact numbers were taken.

SECONDARY DATA:

The data that has been already collected by others is called

secondary data. The secondary data could be collected from journals,

Reports, internet and various publications. The advantages of the

117

secondary data can be it is economical, both in terms of money and

time spent.

For secondary data we used various sources like Directories, CA’s

directory, Yellow pages, references & also data from various internet

sites like google.com, ask.com where there are few free resumes

available.

These data was taken from the following sources:

Mutual Fund companies executives

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OBJECTIVE OF THE STUDY

The Present study has been undertaken with the objective of

examining, analyzing and interpreting under the title

“consumer behaviour about mutual fund in karvy”

The specific objective can be enumerated as following-

(1)To study the demographic pattern of investment.

(2)To know the saving habits of investors.

(3)To know the interest of customers regarding Investment in

Mutual Fund.

(4)To identify the criteria for choosing the schemes amongst the

following-

a. Tax benefit

b. Capital growth

c. Liquidity

(5)To identify need of customers/investors according to the

various schemes available in Mutual Fund, Such as sectoral

fund, debt fund and equity fund.

(6)To study the satisfaction level of Investors.

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(7)To identify the investors reaction for the introduction of

Mandatory Permanent Account Number (PAN) Card.

(8)To develop the understanding of various funds available in the

market.

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DATA ANALYSIS

INVESTOR’S PROFILE

AGE:

Age (Years) No %

20-30 23 19.17

30-40 48 40.00

40-50 34 28.33

>50 15 12.50

Total 120 100.00

19.17%

40.00%

28.33%

12.50%20-30

30-40

40-50

>50

Description:

Most of the respondents (40%) are in the age group of 30-40 years.

Least no. of respondents are in the age group of more than 50 years.

121

Sex:

Male No %

MALE 94 78.3

FEMALE 26 21.7

Total 120 100.00

78.30%

21.70%

Male

Female

Description:

Majority of the respondents are male (about 78%).

About 22% are female No. of female investors are quite less than that of male.

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Profession:

Profession No %

Govt. Service 23 19.17

Private Service 45 37.50

Self Employed 52 43.33

Total 120 100.00

19.17%

37.50%

43.33%Govt. Service

Private Service

Self Employed

Description:

Majority of the respondents are self employed i.e. 43% of the sample size.

Govt. servant constitute only about 19% lesser than private service holder (about

37%).

More of the person are from self employed which determine from the concern

report.

123

Q.1 Which Income bracket best describe your annual income?

Income (Rs. in lakh) No %

Up to One 08 7

1 to 2.5 36 30

2.5 to 5 54 45

>5 22 18

Total 120 100.00

7.00%

30.00%

45.00%

18.00% Up to One lakh

One lakh to 2.5

2.5 to 5 lakh

>5 lakh

Description:

Majority of the investors comes under the income 2.5 to 5 lakh.

About 18% respondents come under the income more than 5 lakh.

Least %age (7%) respondents come under the income up to 1 lakh.

124

Q.2 What % of your income do you invest?

Investment (in %) Number %

<15 32 27

15-30 41 34

30-50 29 24

>50 18 15

Total 120 100.00

27.00%

34.00%

24.00%

15.00% <15

15 to 30

30 to 50

>50

Description:

34% of the respondents invest 15 to 30% of their income where as 27%

respondent invest less than 15% of their income.

24% invest 30-50% income of their income.

Only 15% respondents invest greater than half of their total income.

125

Q.3 How much of total investment do you invest in mutual fund?

Investment (in %) Number %

<10 43 36

10-20 37 31

20-40 28 23

>40 12 10

Total 120 100.00

36.00%

31.00%

23.00%

10.00% <10

10 to 20

20 to 40

>40

Description:

36% of the respondents invest less than 10% in mutual fund out of their total

investment compare to 31% who invest their 10-20% of their total investment.

23% respondents invest 20-40% of their total investment where as respondent

greater than 40% invest of their total investment in mutual fund.

126

Q.4 What is the Primary objective of your investment?

Objectives Number %

Tax benefits 38 32

Capital appreciation 42 34

Dividend 09 08

Liquidity 31 26

Total 120 100.00

32.00%

34.00%8.00%

26.00%

Tax Benefit

CapitalAppreciation

Divident

Liquidity

Description:

About 34% of the respondent’s primary objective is capital appreciation. Tax

benefit is the second objective of the respondent (31%).

Liquidity as a primary objective constitute only 26%. 8% invest for the objective

of dividend.

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Q.5 Which of the following types of Mutual Fund do you invest in?

Types of Mutual Fund Number %

Open Ended 47 39

Close Ended 12 10

Both 61 51

Total 120 100.00

39.00%

10.00%

51.00%

Open Ended

Close Ended

Both

Description:

Open ended schemes constitute 39% of the total respondents. Where as only 10%

constitute close ended schemes.

Both open ended and close ended constitute about half of the respondent (51%).

128

Q.6 What is your preference of investment among the following schemes?

Schemes Number %

Equity 49 41

Debt 23 19

Sectoral 35 29

Others 13 11

Total 120 100.00

41.00%

19.00%

29.00%

11.00% Equity

Debt

Sectoral

Others

Description:

Equity schemes are the most preferred (41%), then sectoral schemes (29%).

Debt schemes constitute 19% and others constitute only 11%.

129

Q.7 Which of the following AMC’S (Mutual Fund) did you make maximum

investment in?

AMC’S (Mutual Fund) Number %

Reliance 29 24

ICICI Prudential 07 06

LIC 43 36

Karvy 25 21

Others 16 13

Total 120 100.00

Description:

Reliance mutual fund is widely expected (second position0 just sfter LIC which

constitute 36% of the respondents. Karvy on 3rd (21%).

ICICI Prudential is least popular (only6%).

Others mutual funds constitute 13% of the respondents.

130

24.00%

6.00%

36.00%

21.00%

13.00%Reliance

ICICI

LICKArvy

Others

Q.8 Do you think that the performance of AMC effect the criteria of Investment?

Opinion Number %

Yes 97 80

No 14 12

Can’t Say 09 08

Total 120 100.00

80.00%

12.00%

8.00%

Yes

No

Can's Say

Description:

Maximum of the respondents (80%) think that the performance of AMC effect the

criteria of investment whereas 12% don’t believe so.

8% are unable to say anything.

131

Q.9 Are you satisfy with the return or your present investment?

Opinion Number %

Highly Satisfied 11 09

Satisfied 57 47

Unsatisfied 38 32

Highly Unsatisfied 14 12

Total 120 100.00

9.00%

47.00%32.00%

12.00%

Highly Satisfied

Satisfied

Un Satisfied

Highly UnSatisfied

Description:

About half of the respondents (47%) are satisfied with return of their present

investment. On the other hand 32% are unsatisfied also.

9% of the respondents are highly satisfied compare to 12% who are highly

unsatisfied.

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Q.10 Do you think that mandatory of permanent account number (PAN) effect the

investment?

Opinion Number %

Yes 93 77

No 21 18

Can’t Say 06 05

Total 120 100.00

77.00%

18.00%5.00%

Yes

No

Can't Say

Description:

77% of the respondents think that mandatory PAN effect the investment. On the other

hand, 18% don’t believe so.

5% are unable to say anything.

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FINDINGS:

1) Majority of the respondent we met were Male in the age group of 30-40 yrs.

2) More than 65% of the investor invest only about 20% of their total investment in

Mutual fund.

3) Majority of investors have invested in LIC, as perhaps it’s oldest and reliable

trust.

4) Amongst the private player, Karvy Mutual fund is rapidly becoming popular

among investors.

5) People invest in Mutual Fund Primarily for capital growth and secondarily for tax

benefits % liquidity.

6) Majority of the investors opt for equity schemes.

7) Open ended schemes have more preference to close ended schemes.

8) Performance of AMC largely effect the investment.

9) Introduction of Permanent Account No. (PAN) for investing in Mutual Fund will

effect the AMC in accumulating funds.

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RECOMMENDATIONS AND SUGGESTIONS

1) There is a large scope of Mutual Funds to invest in especially in suburban area.

2) There is need to have more promotional activities from the very grass root level

such as installing canopy, advertising through print & electronic medic.

3) People invest their savings in a trust not in a company. So investors trust should be

maintained and developed by delivering best services and after safe services, value

added services and after sale services.

4) The objective of the investment for mutual fund should be capital growth and fund

should be invested in equities.

5) Equity schemes of Mutual Fund are the most preferred amongst investors as they

give high returns over the other schemes.

6) Open ended scheme is highly preferred amongst customers as there may be reasons

for redemption of unit at any period of time.

7) Performance of mutual should be focused on by providing necessary facts figures,

award & other achievement of the trust.

8) Investors got their expected returns from the investment they have make already

and thus it widen the scope of investment further.

9) Almost 75% of investor do not want to give their permanent Account No. (PAN)

while investing in Mutual fund and trust, it should be mandatory for a specified

amount of investment.

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LIMITATIONS

Lead provided me was not sufficient.

Due to paucity of time, sample size limited up to 120 respondents only.

Most of the investors did not respond well & might have replied incorrectly.

it was difficult to fix appointment with clients due to their tight schedule.

The reliability of data collected and analyzed depends upon the sources of data.

Some investors did not want to reveals fact figures of their earnings and

investment.

The lead provided me was limited to Lucknow only. It was not enough to my

summer training Topic.

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BIBLIOGRAPHY

www.google.com

www.karvy.com

www.reliancemutual.com

www.nseindia.com

www.reliancemutualfund.com

www.mutualfundofinsa.com

NEWS PAPER (ECONOMIC TIMES, BUSINESS WORLD, TIMES

OF INDIA)

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QUESTIONNAIREINVESTOR’S PROFILE

AGE:

Age (Years)

20-30

30-40

40-50

>50

Sex:

MaleMALEFEMALE

Profession:

ProfessionGovt. ServicePrivate ServiceSelf EmployedQ.1 Which Income bracket best describe your annual income?

Income (Rs. in lakh)Up to One1 to 2.52.5 to 5>5Q.2 What % of your income do you invest?

Investment (in %)<1515-3030-50>50Q.3 How much of total investment do you invest in mutual fund?

Investment (in %)<1010-2020-40

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>40Q.4 What is the Primary objective of your investment?

ObjectivesTax benefitsCapital appreciationDividendLiquidityQ.5 Which of the following types of Mutual Fund do you invest in?

Types of Mutual FundOpen EndedClose EndedBothQ.6 What is your preference of investment among the following schemes?

SchemesEquityDebtSectoralOthersQ.7 Which of the following AMC’S (Mutual Fund) did you make maximum

investment in?

AMC’S (Mutual Fund)RelianceICICI PrudentialLICKarvyOthersQ.8 Do you think that the performance of AMC effect the criteria of Investment?

OpinionYesNoCan’t SayQ.9 Are you satisfy with the return or your present investment?

Highly SatisfiedSatisfiedUnsatisfiedHighly UnsatisfiedQ.10 Do you think that mandatory of permanent account number (PAN) effect the

investment?

YesNo

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Can’t Say

140