Consumer Behaviour About Mutual Fund in Karvy

8/6/2019 Consumer Behaviour About Mutual Fund in Karvy

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SUMMER TRAINING REPORT ON

"CONSUMER BEHAVIOUR ABOUT MUTUAL FUND IN

KARVY"

Submitted in Partial Fulfillment in Award of Degreeof 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 Srivastavawhose 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 thereFidelity,

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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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

companys 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 funds

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--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 AMCS 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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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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KARVY CONSULTANTS LIMITED

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 worlds 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

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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

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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.

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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.

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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 ones 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

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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

allocated exclusively to our demat division including technological

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

delivery impeccable. A wide national network makes our efficiencies

accessible to all.

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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.

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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.

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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

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.

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KARVY INVESTORS SERVICES LIMITED

Merchant Banking

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.

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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

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 worlds 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

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

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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.

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We have grown from being a pure transaction processing business,

to one of complete shareholder solutions.

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

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improvements, operational cost control, cost savings, improved

accountability and a whole gamut of other advantages.

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 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...

Readers 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

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UTI Mutual Funds 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

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--vis the funds in

the peer group.

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Mumbai

1st Feb 2003

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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

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(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

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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

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Alaknanda

New Delhi-110 019

Shri P. R. Khanna

Chartered Accountant

70, Sundar Nagar

New Delhi - 110 003

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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

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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.

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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

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