Acknowledgement: Submitted By:-Ramesh Rao 1

Acknowledgement
I would like to thank ICICI Bank Ltd., Jaipur for providing me with an opportunity
to work on my summer project.
I would like to thank my project guide Mr. Bhupendra Singh for providing me
continuous guidance & support and for his valuable inputs during the course of my
project.
The staff at ICICI Bank Ltd. was very co-operative and helped me a lot by
providing required information whenever I needed it.
I am thankful to my Faculty Guide Prof. Vishal Anand for their continuous support
and guidance.
And finally I would like to thank all the faculty at Maharishi Arvind Institute of
Science & Management, Jaipur. for equipping me to carry out this study.
Ramesh Rao
Submitted By:- Ramesh Rao 1

1. INTRODUCTION TO ICICI BANK
ICICI Bank is India's second-largest bank with total assets of about Rs.
2,513.89 bn (US$ 56.3 bn) at March 31, 2006 and profit after tax of Rs.
25.40 bn (US$ 569 mn) for the year ended March 31, 2006 (Rs. 20.05 bn
(US$ 449 mn) for the year ended March 31, 2005). ICICI Bank has a
network of about 614 branches and extension counters and over 2,200
ATMs. ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery
channels and through its specialized subsidiaries and affiliates in the areas
of investment banking, life and non-life insurance, venture capital and
asset management.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian
financial institution, and was its wholly owned subsidiary. ICICI's
shareholding in ICICI Bank was reduced to 46% through a public offering
of shares in India in fiscal 1998, an equity offering in the form of ADRs
listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of
Madura Limited in an all-stock amalgamation in fiscal 2001, and
secondary market sales by ICICI to institutional investors in fiscal 2001
and fiscal 2002. ICICI was formed in 1955 at the initiative of the World
Bank, the Government of India and representatives of Indian industry. The
principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian
businesses. In the 1990s, ICICI transformed its business from a
development financial institution offering only project finance to a
diversified financial services group offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates
like ICICI Bank. In 1999, ICICI become the first Indian company and the

first bank or financial institution from non-Japan Asia to be listed on the
NYSE.
In October 2001, the Boards of Directors of ICICI and ICICI Bank
approved the merger of ICICI and two of its wholly owned retail finance
subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital
Services Limited, with ICICI Bank. Shareholders of ICICI and ICICI
BANK approved the merger in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002, and by the High Court of
Judicature at Mumbai and the Reserve Bank of India in April 2002.
Consequent to the merger, the ICICI group's financing and banking
operations, both wholesale and retail, have been integrated in a single
entity.

KINDS OF INVESTMENTS
There are many investment vehicles available. But in general, all forms of investments
may be divided into two categories: one is security form of investment (Marketable) and
another is non-security form of investment (Non-Marketable). Security form includes
Bonds, Debentures, Taxable & Tax free Public Sector Bonds, Preferences Shares, and
Equity Shares. Non-security form includes N.S.S., N.C.C., Provident Funds, Fixed
Deposits, life Insurance Policies and Mutual Fund Schemes. We can also divide
investment in "Debt" and "Equity" investments also. Anytime one allows someone to use
his money to make money, it is considered a "debt" investment. This category would
include bank certificates of deposit; bonds (of all types); fixed annuities; cash value of
whole or universal life insurance; notes receivable; etc. "Equity" investments actually
allow investor to take an ownership position and include stocks, real estate, tangible
assets such as gold; and collectibles such as art, antiques, etc.
Debt investments usually involve little, if any, risk of principal, and low to moderate
returns. These returns are derived from interest and/or dividends. Equity investments
expose all of investor’s investment capital to the risk of losing his principal, and
generally derive most of their investment return from appreciation of the value of the
underlying asset (capital gains).
Factors to be considered while Selecting an Investment

Although there are numerous factors that may be considered, some of the most important
are:
• Risk • Marketability and Liquidity
• Rate of Return • Safety
• Impact of Taxes on Return • Diversification

Risk
There are many kinds of risk in investing. Some forms of risk may be more important to
an investor than others. If one learns to identify each of these types of risk, he can then
determine which of these have importance, as he structure his investment portfolio.
• Risk of Principal – If the investment selected performs poorly, the amount of
money which was invested can be lost, in part or in whole.
• Market/Volatility Risk – The value of the investment selected may move up or
down due to changes in the particular financial market he has invested in.
• Purchasing Power Risk – This is uncertainty over the future purchasing power
of the income and principal from a selected investment. This is created by
changes in the general price level of the economy.
• Interest Rate Risk – Investments which are providing fixed income (such as
bonds, CDs, etc). will experience changes in price as interest rates increase and
decrease. In general, a rise in market interest rates tends to cause a decline in
market prices for existing securities and conversely, a decline in interest rates
tends to cause an increase in market prices for existing securities, thus creating an
inverse relationship with the general level of interest rates
• Tax Risk – This involves the potential tax consequences involved with a
particular investment to include federal and state income, estate, inheritance and
gift taxes.
Rate of Return
Expected future return is what causes an investor to select an investment. And, since the
purpose of investing is to earn a return sufficient to fund his goal(s), he should understand
how he would receive this return. It may take a variety of forms to include interest,
dividends, rental income, business profits, and capital gains. The total amount of
earnings on an investment is "total return". And this is generally broken down into two
main components:
• Current Income – income received regularly over the course of the investment
(dividends, interest or rent)

• Capital Gains – the increase in the market value of the specific investment
vehicle. This return is generally not received or recognized until the asset is sold.
Another factor affecting Rate of Return is the potential effect of compounding (earning
interest on interest). If interest, dividends, etc. are allowed to remain in the investment
and in turn, receive the benefit of future growth, the result is compounding.
The interaction between these first two factors creates the Risk/Return Trade Off. The
amount of risk associated with a given investment vehicle is directly related to its
expected return. This is known as the "Universal Rule of Investing". So, theoretically, the
more risk one is willing to take, the higher return he should expect to receive. To give
some perspective, a "risk-free" rate of return would be an investment that provides a
positive return with zero risk (i.e. a 91-day Treasury bill). This is often used as a
benchmark against which other investments are measured. As risk is increased, so should
return potential. Bank rate can be also used as a benchmark against other investments.
Impact of Taxes on Return
It has been said that it doesn’t matter what you get; only what you get to keep! For this
reason, it is very important to differentiate between the Return received from an
investment and its "after-tax" Return.
There are several considerations here:
• An investment may yield income that is currently taxable as ordinary income,
such as interest on Certificates of Deposit, corporate bonds, etc. In this case, the
After-Tax Yield is going to be less than its Current Yield (interest rate). This
can be determined by multiplying the current yield by "1" minus the investor’s
income tax rate.
• An investment may yield income that is tax exempt, such as interest from some
municipal bonds. So, the after-tax yield for a fully tax-exempt investment equals
the Current Yield.
• An investment may yield returns that are taxable only when realized and
recognized as capital gains. For example capital appreciation on the shares of a
particular company. Further, due to favorable capital gains treatment, when the
shares of stock are finally sold, the tax rate will be lower than the tax rate would

have been had the shares produced dividends which would have been taxed as
ordinary income.
These were very simple examples, when in fact; the implications of tax treatment
of investment income can be very complex. Investor’s professional tax and
investment adviser can assist him in determining the impact of his investment
positioning on his personal tax situation.
Marketability and Liquidity
These terms are sometimes used synonymously, but they are not the same thing.
• Marketability refers to the degree to which there is an active market in which an

investment can be readily traded.
• Liquidity refers to the ability to readily convert an investment into cash without
losing any of the principal invested. An investment with liquidity has a highly
stable price.
Some investments are neither marketable nor liquid; others are marketable, but not
liquid; or liquid, but not marketable; while others are both marketable & liquid.
Although marketability and liquidity are desirable, it is often necessary to have a "trade-
off", since highly marketable or liquid assets usually yield less than less marketable or
illiquid investments. So, an important question for one investor to consider is "Is
marketability or liquidity important enough to give up some yield?" This, of course,
depends on investor’s overall situation.
Diversification
Diversification is an important investment policy to consider in constructing a portfolio.

It refers to the defensive strategy of spreading investment rupees into several different
investments in order to minimize risk. There are numerous types of diversification.
Investor might diversify between stocks and bonds (equity and debt); between liquid and
non-liquid investments; between one investment objective and another; etc.

The principal of diversification is that the prices or values of all differing investment
opportunities do not go up or down at the same time or in the same magnitude, so an
investor can protect at least a portion of his/her investment assets by diversifying.
SELECTING AN INVESTMENT

DEBT INVESTMENTS
What kinds of debt investments (fixed income securities) should investor consider for his
portfolio, and how will they impact his investment return? Fixed income securities
promise the investor a stated amount of income periodically. The most common fixed
income investments include:
• Corporate Bonds
• Convertible Bonds
• Zero Coupon Bonds
• Municipal Bonds
• RBI Treasury bills, notes and bonds
• Preferred Stocks and Convertible Preferred Stocks
• Savings Accounts
• Certificates of Deposits
• Fixed Deposits with Banks
EQUITY INVESTMENTS
Not only equity shares of any co. are considered as equity investment, but there are many
investments that can be considered equity investments. Common characteristics are more
risk and expected return in the form of capital appreciation rather than regular income.
These can be:-
• Common Stocks
• Real Estate
• Energy/Oil and Gas
• Puts and Calls/Options
• Commodities
• Art, Antiques, Collectibles
• Tangibles (Precious metals and gemstones)
Common Stocks

What Are the Investment Characteristics of Common Stock?
When one investor purchases a "share" of stock, he becomes a fractional owner interest in
that company. As a common stockholder, he will actually have an ownership position in
the company. He may receive dividend income, but only after all other debt obligations
have been met by the company. Also, if the value of his share of stock increases over the
time he holds it, he will experience a capital gain at the time he sells his share of stock.
But, in the event the company does not meet its financial objectives, there may be no
dividends paid, and the value of his share of stock may stay the same or even decrease.
There is no guarantee that there will be a return on his investment.
Issuers of common stock are corporations. As a shareholder, he will have the right to vote
on company decisions (one vote for each share of stock purchased). He may vote in
person at the annual stockholders meeting, or he may vote by proxy.
Are There Different Kinds of Stocks?

Stocks may be categorized in many ways. Classification by type is probably the most
common method of categorizing.
Blue Chip Stocks – These are stocks of high quality with long and stable records of
earnings and dividends. They are well-established and hold strong financial credentials
(i.e. Reliance, ITC, Infosys)
Growth Stocks – These are stocks which experience high rates of growth in operations
and earnings.
Income Stocks – These are stocks that are selected primarily for the dividends they pay.
They have been able to demonstrate a stable stream of earnings.
Speculative Stocks – These are stocks of companies which may be expected to have
significant immediate growth, such as a company which may have recently developed a

new patent etc. There is usually no proven record of earnings, and these are considered
high-risk companies.
Cyclical and Defensive Stocks - Cyclical stocks are those whose movement tends to
follow the business cycle of the economy as a whole. When the economy as a whole is
expanding, the prices of these stocks are increasing. These are industries such as
automotive, lumber, steel, etc. Defensive or "counter-cyclical" stocks, on the other hand,
can be expected to remain stable throughout the periods of contraction in the business
cycle. They are usually dividend stocks and their earnings tend to keep market prices up
during periods of economic decline.
DEVELOPMENT OF MUTUAL FUNDS INDIA

The Mutual Fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Reserve Bank and the Government of India. The objective
was then to attract the small investors and introduce them to the market investments.
Since then, the history of Mutual Funds in India can be broadly divided into three distinct
phases.
 PHASE 1: July1964-nov.1987 (Unit Trust of India)
The Indian Mutual Fund industry is dominated by the Unit Trust of India, which has a
total corpus of Rs700bn, collected from more than 20 million investors. The UTI has
many funds/schemes in all categories i.e. equity, balanced, income etc with some being
open-ended and some being closed-ended. The Unit Scheme 1964 commonly referred to
as US 64, which is a balanced fund, is the biggest scheme with a corpus of about
Rs200bn. This phase was marked by monopoly of UTI. This foundation was laid by the
parliament in 1963 with the enactment of Unit Trust of India(UTI) Act. UTI alone
managed the show with 5 open ended funds till 1987.
1987-88
Amount mobilized Assets under Mobilization as %
(Rs. Crores) Management Of Gross Domestic
(Rs. Crores) Savings
UTI 2,175 6,700 3.1%

Total 2,175 6,700 3.1%
 PHASE 2: 1987-1993 (Public Sector Competition)
The second largest categories of Mutual Funds are the ones floated by nationalized banks.
This period was marked by the entry of non-UTI public sector Mutual Funds in the
market bringing competition with the opening up of economy.

The first non-UTI Mutual Fund-SBI MF-was launched by SBI in November1987.it was
followed by
Canbank MF Scheme December 1987
LIC MF Scheme June 1989
Indian Bank MF Scheme January 1990
Bank of India 1991
GIC MF Scheme
PNB MF Scheme 1992
The entry of public sector MF created wave in the market attracted small investors.
Before 1989 there was no regulatory guidelines for MF industry in India, the first such
guideline for setting up a regulatory MF were issued by RBI in October 1989 but they
were applicable only to MF’s floated by banks. Comprehensive guidelines were issued by
GOI in June 1990 but these were amended in SEBI (MF) Regulation 1993 w.e.f.20
January 1993.
1992-93
UTI 11,507 38,247 5.2%

Public Sector 1,964 8,757 0.9%
Total 13,021 47,004 6.1%
 PHASE 3: 1993-1996 (Emergence of Private Funds)
A new era in MF industry began with entry of private sector funds in 1993 posing a
serious competition to existing public sector funds The first private sector mutual fund to
launch a scheme was Madras based Kothari Pioneer MF launched Open ended scheme
Prima Fund in November 1993.ICICI, 20th Century, Morgan Stanley, Taurus also came
in the same year. These 5 MF launched 7 schemes & mobilized Rs.1559.6 Crore during

first year 1993-94.most of these private sector funds were floated by Indian organization
alongwith experienced foreign asset Management Company.
1998-99
UTI 11,679 53,320 2.79%

Public Sector 1,732 8,292 0.08%
Private Sector 7,966* 6,860* 1.14%
Total 21,377 68,472 5.1%
* Figures of asset under Management are after taking account of Redemptions. Amounts
Mobilized are gross.
April-Oct99
Amount mobilized Assets under
(Rs. Crores) Management
(Rs. Crores)
UTI 8,312 64,276

Public Sector 1,222 8,656
Private Sector 13,789* 14,017*
Total 23,323 86,949
 PHASE 4: 1996 (SEBI Regulation for Mutual Funds)

A comprehensive set of regulations for all Mutual Funds operating in India has been
accomplished with SEBI (Mutual Fund) Regulation, 1996. These regulations set uniform
standards for all Mutual Funds.
GROWTH OF MUTUAL FUND INDUSTRY IN INDIA ACROSS THE

DEVELOPMENT PHASES DISCUSSED ABOVE
Synoptic View Of Asset And Mobilization Across The Phases of Development

UTI Public Sector Private Sector
1987-88 Mobilization 100%
Assets 100%
1992-93 Mobilization 80% 20%
Assets 80% 20%
1998-93 Mobilization 50% 10% 40%
Assets 80% 10% 10%
Apr-Oct’99 Mobilization 30% 5% 65%
Assets 70% 10% 30%
MUTUAL FUNDS INVESTMENTS
What Are Mutual Funds?
Mutual funds are large professionally managed portfolios that are formed by many
individual investors who collectively pool their resources in order to achieve a high level
of diversification. More investors, by far, invest in mutual funds than in any other type of
investment product. There are two types of mutual funds:
Open-End Investment Companies – In these funds, investors buy and sell shares from
the fund itself. There is no limit to the number of shares a fund can sell, and buy and sell
transactions are carried out at prices based on the current value of all the securities in the
fund’s portfolio. Net Asset Value (NAV) is based on the current value of all securities

held in the fund’s portfolio, and represents the price at which the investor can sell his/her
shares.
Closed-End Investment Companies – Closed end companies operate with a fixed

number of shares outstanding and do not regularly issue new shares. These shares are
listed and traded on an organized securities exchange, and trades may be at a discount or
premium.
Through mutual funds, small investors are able to enjoy a much higher degree of
diversification than they would be able to attain though individual stock or bond
purchases on their own. Most mutual fund accounts can be opened with small initial
investments. In addition, experienced professional managers select the securities to be
purchased and make timing decisions concerning buying and selling on the most
advantageous basis.
In addition, funds are highly marketable, and mutual funds offer numerous services to
meet individual investor needs. Funds are easy to acquire or sell, and there is very little
paperwork or record-keeping required of the investor. Finally, the return on many funds
has exceeded the average return of many other comparable investments.
How does one make Money in a Mutual Fund?
Mutual funds have three potential sources of return:
Dividend Income – The underlying stocks in the fund may pay a dividend, and the
mutual fund investor receives his/her proportionate share of those dividends. (This is
considered taxable income.)
Capital Gains Distributions – The fund may sell one of its stock holdings at a profit, and
the individual fund investors will again receive a proportionate share of this capital gain.

(This is also a taxable event, and may or may not qualify for favorable taxable gains
treatment.).
Increase in Share Value Above Purchase Price – The share of the mutual fund itself
may increase in value over the purchase price. This gain is not realized until the share of
the fund is ultimately sold, at which time it will receive capital gains treatment for tax
purposes.
The overall return (gain or loss) of the fund is based on these three sources.
What Types of Investments are Available through Mutual Funds?

Almost any type of investment is available through mutual funds. A fund’s investment
objective must be disclosed in its prospectus. The most common fund objectives are:
Growth Funds – The objective is capital appreciation achieved through long term growth
and capital gains.
Aggressive Growth Funds – The objective of the fund is more aggressive or speculative,
but is still growth-oriented.
Equity –Income Funds – The objective emphasizes current income (usually through
high-yielding stocks); capital preservation; and may also seek capital gains.
Balanced Funds – These funds hold a balanced portfolio of both stocks and bonds, in
order to generate a well-balanced return of current income and long term capital gains.
Bond Funds – These funds invest in bonds of various grades and kinds, based on their
stated objective. They could include government bond funds, mortgage backed bond
funds, high-grade corporate bond funds, convertible bond funds, municipal fond funds,
etc.

Money Market Funds – These funds include a portfolio of short-term money market
instruments and have high liquidity, but limited investment return.
Sector Funds – These funds concentrate in one ore more specific industries that make up
the targeted sector such as technology, health, energy, etc.
Socially Responsible Funds – These funds focus on consideration of issues other than
financial; that is, moral, ethical or environmental. These funds might abstain from
investing in a particular industry (such as tobacco), or might target firms whose services
are acting in accordance with identified desired principles.
International Funds – These funds invest in foreign securities. Some confine investment
to a particular country or geographic region; while others are more broad-based.
Global Funds – These funds invest in foreign securities similar to international funds, but
also invest in Indian companies operating abroad by subscribing GDR’s and ADR’s.
(Usually multi-national firms)
Note: International and Global Funds are influenced by factors not present in domestic
mutual funds such as changing foreign market conditions and political climates, as well
as fluctuation in the Rupee Value in relation to foreign currencies. For these reasons,
these funds are generally thought to be of higher risk than domestic funds.
Asset Allocation Funds – The managers of these funds allocate specific blocks of
invested funds into different objectives and re-arrange this allocation as market
conditions change.
STRUCTURE

Structure of the Indian Mutual Fund Industry
The Unit Trust of India dominates the Indian mutual fund industry. The UTI has many
funds/schemes in all categories i.e. equity, balanced, income, etc with some being open-
ended and some being close-ended. UTI was floated by financial institutions and is
governed by a special act of Parliament. Most of its investors believe that the UTI is
government owned and controlled, which, while legally incorrect, is true for all practical
purposes.
The second category of mutual funds is the ones floated by nationalized banks. Canbank
Asset Management floated by Canara Bank and SBI Funds Management floated by the
State Bank of India are the largest of these. GIC
AMC floated by General Insurance Corporation and Jeevan Bima Sahayog AMC floated by the
LIC are some of the other prominent ones.
The third largest category of mutual funds is the ones floated by the private sector and by
foreign asset management companies. The largest of these are Birla Sun Life AMC,
Standard Chartered AMC, etc.
TYPES OF MUTUAL FUNDS
Mutual fund schemes may be classified on the basis of its structure and its investment
objective.
(1) By Structure/Operational classification:
♦ Open-ended Funds-
An open-ended fund is one that is available for subscription all through the year.
These do not have a fixed maturity. Investors can conveniently buy and sell units at

Net Asset Value (NAV) related prices. The key feature of open- ended schemes is
liquidity.
♦ Closed-ended Funds-
A closed-ended fund has a stipulated maturity period that generally ranges from 3 to
15 years. The fund is open for subscription only during a specified period. In order to
provide an exit route to the investors, some close-ended funds give an option of
selling back the units to the mutual fund through periodic repurchase at NAV related
prices.
♦ Interval Funds-
Interval funds combine the features of open-ended and closed-ended schemes. They
are open for sale or redemption during pre-determined intervals at NAV related
prices.
(2) By Investment Objective/ Portfolio Classification:
♦ Growth Funds-
The aim of growth funds is to provide capital appreciation over the medium to long
term. Such scheme normally invests a majority of their corpus in equities. It has
been proven that returns from stocks, have outperformed most other kind of
investments held over the long term. Growth schemes are ideal for investors having a
long-term outlook seeking growth over a period of time.

♦ Income Funds-
The aim of income funds is to provide regular and steady income to investors. Such
schemes generally invest in fixed income securities such as bonds, corporate
debentures and Government securities. Income funds are ideal for capital stability and
regular income.
♦ Balanced Funds-
The aim of these funds is to provide both growth and regular incomes. Such schemes
periodically distribute a part of their earnings and invest both in equities and debts.
These are ideal for investors looking for a combination of income and moderate
growth.
♦ Money Market Funds-
The aim of money market funds is to provide easy liquidity, preservation of capital
and moderate income. These schemes generally invest in safer short-term instruments
such as treasury bills commercial paper etc. These are ideal for Corporate and
individual as a means to park their surplus funds for short-term periods.
(3) Tax Saving Scheme
♦ These schemes offer tax rebates to the investors under specific provisions of the
Indian Income Tax laws as the government offers tax incentives for investment in
specified avenues. Investments made in Equity Linked Savings Schemes and
pension schemes re allowed as deduction u/s 88 of I T Act 1961.
(4) Special Schemes

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

CONSTITUTION OF THE MUTUAL FUND
An attempt was made for first time in SEBI GUIDELINES 1992 to spell out for
managing the affairs of mutual funds ensuring arm’s length distance between the sponsor
and the fund. The four custodians and asset management company. Moreover in reality
pooled funds of small investors were being put to use for the advantage of the sponsors.
Four constituents for the management of mutual fund are presented in chart
Sponsors
(Promoters)
Asset
Management
Company
(Managing the
TRUSTEES
investments of
Mutual
(Holding
Fund fund)
property of
(A Trust)
Fund)

CUSTODIANS
(SAFE CUSTODY OF
FUND SECURITIES ETC.)
SPONSORS
It refers to anybody corporate which initiates the launching of a mutual fund. It is this
agency, which of its own or in collaboration with other body corporate comply the
formalities of establishing a mutual fund. SEBI ensures that sponsors should have
professional competence, financial soundness and general reputation of fairness and
integrity in business transactions. Sponsor is normally not responsible for any loss or
shortfall resulting from the operations of any scheme of the fund beyond its initial
contribution towards the constitution of the trust fund.
TRUSTEES
A trustee is a person who holds the property of the mutual fund in trust for the benefits of
the units holders. A company is appointed as a trustee to manage the mutual fund. To
ensure fair dealings, mutual fund regulations require that one cannot be a trustee or a
director of a trustee company in more than one mutual fund.
Further at least fifty percent of the trustees are to be independent of the sponsors.
Trustees take into their custody, or under their control all the property of the mutual fund.
It is trustee’s duty to observe and ensure that AMC is managing schemes in accordance

with the trust deed. Trustees for their services are paid trusteeship fee, which is to be
specified in the trust deed.
CUSTODIANS
SEBI requires that each mutual fund shall have a custodian for managing the scrips
bought from the market who is not in anyway associated with the AMC. He cannot act as
sponsor or trustee of any mutual fund. Further he is not permitted to act as a custodian of
more than one mutual fund without the approval of SEBI. Custodian’s main assignment
is safekeeping of the securities or participation in any clearing system on behalf of the
client to effect deliveries of the securities.
Depending on the volume there can be co-custodian for a mutual fund. These custodians
are entitled to receive custodianship fee based on the average weekly value of net assets
or sale and purchase of securities along with per certificate custody charges.
Asset Management Company (Investment manager)
Asset Management Company as the name implies is to be a body corporate whose

Memorandum and Articles of Association are to be approved by SEBI. It is the AMC,
which operates all the schemes of the fund. AMC can act as AMC an AMC of only one
mutual fund and cannot act as a trustee of any other mutual fund. To ensure efficient
management SEBI desires that existing AMC should have a sound track record, dividend
paying capacity and profitability, etc. Regulations require that at least 50% of the
directors should be such who do not have any association with the sponsors or the
trustees.
WORKING OF ASSET MANAGEMENT COMPANY

It is not required that AMC performs all its functions of its own. It can hire services of
outside agencies as per its requirements or perform all functions of its own. The main
agencies services of which an AMC may require are depicted in the chart.
ASSET MANAGEMENT COMPANY
Registrar Lend Legal Auditors

And Managers advisors
Transfer
Agent
Fund Investment Fund
Accounting Advisors Manager
♦ REGISTRAR AND TRANSFER AGENT.

♦ FUND ACCOUNTING.
♦ LEND MANAGERS.
♦ INVESTMENT ADVISORS.
♦ LEGAL ADVISORS.
♦ FUND MANAGER.
♦ AUDITORS.

REGISTRAR AND TRANSFER AGENTS are assigned the job of receiving
and processing the application forms of investors, issuing unit certificates, sending refund
orders, according all transfers of all units and maintaining all such records, repurchasing
the units, redemption of units, issuing dividend or income warrants.
FUND ACCOUNTING again depending upon on the size of the fund, its age and
number of expected transactions may be assigned to specialized agencies. All accounting
transaction is recorded and records are maintained by such agencies.
LEAD MANAGERS select and co-ordinate activities of intermediaries such as
advertising agency, printers etc. They normally engaged by AMC for extensive campaign
about the scheme to attract the investors. They assist AMC in approach potential
investors through personal as well as through impersonal promotion.
INVESTMENT ADVISORS may be appointed by AMC if it cannot afford to cope

up with the workload of its own. Investment advisors analyze the market and strategies
on a continuous basis. Majority of Indian Mutual Fund have their own market analysis
that design their own investment strategies.
LEGAL ADVISORS are also sometimes appointed to get legal guidance about
planning and execution of different schemes. A group of advocates and solicitors may be
appointed as legal advisors. AMC is also required to have an auditor to undertake
independent inspection and verification of its accounting activities. AMCs may also
appoint a separate fund manager for each scheme. Such assets manager adheres to the
guidelines evolved by AMC of its own or designed through investment advisors.
Functions of AMC
The two main functions of an Asset Management Company are discussed in detail here.
{A} Investment

The major strength of any AMC lies in its investment function. The investment
department may be classified in four segments. These can be:
 Fund Manager
 Research and Planning Cell
 Dealer
 Underwriter
[1] Fund Manager
Asset Management Companies manage the investment of fund through a fund manager.
His basic function is to decide about which, when, how much and at what rate securities
are to be sold or bought. To a great extent the success of any scheme depends on the
caliber of the fund manager.
Many mutual funds especially in bank sponsored funds, the entire investment exercise is
not left to one individual. One mutual fund has created two committees. First is
Investment Committee which is broad based committee having even nominees of the
sponsor. It collectively decides about the primary market investment. The second is
Market Operation Committee having the assignment of disinvestments and interacting
with secondary market.
[2] Research and Planning Cell
This performs a very sensitive and technical assignment. Depending upon on the
operational policies, such unit can be created by AMC on its own or research findings can
be with respect of securities as well as prospective investors. This section also assists
planning new schemes and designing innovations in schemes.

[3] Dealer
To executive the sale and purchase transactions in capital or money market, a separate
section may be created under the charge of a person called dealer having deep
understanding of stock market operations.
Sometimes, this division is under charge of marketing division of AMC. Such brokers are
to be approved Board of Directors of AMC.
[4] Underwriter
Recently mutual funds have been permitted by SEBI to go in for underwriting of public
issues to generate additional income for their schemes. Activity will be subject to the
following underwriting restrictions:
 For the purposes of the SEBI underwriter’s regulations, the capital adequacy of the
mutual fund shall be the original corpus of any of the scheme(s) and the undistributed
gains lying to the credit of the scheme(s).
 The total underwriting obligations of the scheme shall not exceed the total value of
the corpus of any scheme together with undistributed profits lying to the credit of the
scheme.
 No understanding commitment may be undertaken in respect of the scheme during
the period of six months prior to the date of redemption of any scheme.
{B} MARKETING
Marketing is a big challenge in business especially for mutual fund. Mutual funds deal
with small investors hard earned money. The main challenge of marketing to mutual fund

is that with same product, customers with diversified profile viz demographic, socio-
economic background, life style and psychographics’ are to be served.
It is the marketing division, which complies with the formalities to market the product i.e.
a new scheme. Marketing people also evolve the target amount of a scheme. The most
crucial ‘marketing strategy’ is evolved to the best advantage of the fund.
Marketing division has to evaluate the market potentials, strengths and weaknesses. For
each scheme, what is its market share is very crucial question to design its future
strategies. To identify which section of society is under serviced, is another important
assignment of marketing division.
A mutual fund is an investment vehicle for those who want to spread their risk and seek
returns, which are better than those available from bank deposits. Such investor education
should also be taken up by marketing division to avoid facing situations of loose of faith
of investor heavy off-loading, resulting in the huge discount to NAV.
Marketing people also have a say in dividend policy of the mutual fund. Sufficient
infrastructure facilities are to be created for quality and prompt services.
Marketing a scheme is to be taken as marketing a consumer product.
Marketing for mutual fund is not deal-based but is relationship –based. The psychology
of investor needs deep insight. There are potential investors in the present investors of the
scheme. So understanding and responding to their needs obviously will bring mutual
funds new investors besides retaining the present.

NET ASSET VALUE (NAV)
The net asset value of the fund is the cumulative market value of the assets fund net of its
liabilities. In other words, if the fund ids dissolved or liquidated, by selling off the entire
asset in the fund, this is the amount that the shareholders would collectively own. This
give rise to the concept of net asset value per unit, which is the value represented by the
ownership of one unit in the fund.
CALCULATION OF NAV
The most important part of the calculation is the valuation of the asset owned by the fund.
Once it is calculated, the NAV is simply the net asset value of assets divided by the
number of units outstanding the detailed methodology for the calculation of the asset
value is given below:
Asset value is equal to
Sum of market value of shares/ debentures
+Liquid assets/ cash held, if any
+Dividend/ interest accrued

-Amount due on unpaid assets
-Expenses accrued but not paid
NAV is computed as follows: -
(Market or Fair Value of scheme’s investments+ Current assets including

accrued income-Current liabilities and Provisions including accrued expenses) / Number
of units outstanding at the end of the day.
DETAILS OF THE ABOVE ITEMS
For liquid shares/debentures, valuation is done on the basis of the last closing market
price on the principal exchange where the security is trading. For illiquid and unlisted and
/or thinly traded shares and debentures
The value has to be estimated. For shares, this could be the book value per share or may
be market price. For debentures and bonds, value is estimated on the basis of yields of
comparable liquid securities after adjusting liquidity. The value of fixed interest bearing
securities moves in the direction opposite to the interest rate changes valuation of
debentures and bond is a big problem since most of them are unlisted and thinly traded.
This gives considerably leeway to the AMCs on the valuation and some of the AMCs are
believed to take advantage of this and adopt flexible valuation policies depending on the
situation. Interest is payable on these on a periodic basis. Accrued interest on a particular
day is equal to the daily interest rate multiplied by the number o days since the last
interest payment date.

Usually, dividends are proposed at the time of the Annual General Meeting and become
due on the record date. There is a gap between the dates on which it becomes due and the
actual payment date. In the intermediate period, it is deemed to be: “accrued”.
Expenses including management fees, custody charges etc. are calculated on a daily
basis.
BENEFITS OF MUTUAL FUND INVESTMENT
♦ PROFESSIONAL MANAGEMENT
Mutual fund provide the services of experienced and skilled professionals backed by a
dedicated investment research team that analyses the performance and prospects of
companies and selects suitable investments to achieve the objectives of the scheme.
♦ DIVERSIFICATION
Mutual fund invests in a number of companies across a broad cross-section of industries
and sectors. This kind of diversification enables to reducing the risk.
♦ CONVENIENT ADMINISTRATION
Mutual fund reduces paper work and helps to avoid many problems such as bad
deliveries, delayed payment etc and improves the administration efficiency.
♦ RETURN POTENTIAL
Over a medium to long term, mutual fund have the potential to provide higher return as
they invest in a diversified basket of selected securities.
♦ LOW COST

Mutual fund are relatively less expensive way to invest compared to directly investing in
the capital markets because the benefits of scale in brokerage, custodial and other fees
translate into lower costs for investors.
♦ LIQUIDITY
In open-ended schemes, the investor gets the money back promptly at net asset value
related prices from the mutual fund. In closed ended, units can be sold on a stock
exchange at prevailing market price or the investor can avail of the direct repurchase at
NAV related prices by the mutual fund.
♦ TRANSPERENCY
You get regular information on the value of your investment in addition to disclosure on
the specific investment made by your scheme, the proportion invested in each class of
asset and the fund manager’s investment strategy and outlook.
♦ FLEXIBILITY
Through features such as regular investment plans, regular withdrawal plans and dividend
reinvestment plans, you can systematically invest or withdraw funds according to your
needs and convenience.
♦ AFFORDABILITY
Investors individually may lack sufficient funds to invest in high-grade stocks. A mutual
fund because of its large corpus allows even a small investor to take the benefit of its
investment strategy

♦ WELL REGULATED
All mutual funds are registered with SEBI and they function within the provision of strict
regulations designed to protect the interests of investors. The operations of mutual funds
are regularly monitored by SEBI
What Services/Facilities Are Offered By Mutual Funds?
Numerous services are offered by mutual funds to include:
Automatic Investment Plans – Investors may direct specific amounts of money from
paychecks or bank accounts into the mutual fund on a regular basis (usually monthly).
Automatic Re-Investment Plans – Dividends and other distributions are automatically

used to buy additional shares in the fund.
Regular Income – For shareholders wishing to receive monthly income, a pre-determined

amount can be withdrawn on a regular basis, with a check mailed to the investor. These
amounts may be a fixed amount or tied to interest and dividend earnings.
Conversion Privileges – Investors investing in a "family" of funds may switch from one
fund to another, if their investment objective should change or if they feel the change
would enhance their investment performance. These switches are usually made without
additional sales charge. (This switch would, however, trigger capital gains taxation, if
applicable.)
Retirement Plans – Investors may use mutual funds to set up specialty accounts such as
IRAs or self-employment Retirement plans

What are the Purchase Cost Considerations in Buying a Mutual Fund?
Loads - Funds may be Load Funds (those on which a sales commission is charged when
shares are purchased) or No-Load Funds (those in which no fees are charged to purchase
the fund. Load funds may be structured in several different ways:
Entry load/front-end load:- expenses deducted from initial investment at time of

purchase.
Exit load/Back-end load:- expenses are not deducted from initial investment, but are
deducted from proceeds at time of redemption. This is also known as a "deferred sales
charge".
Annual Charges: - Fees are assessed annually

Management Fees – These fees represent the cost incurred in hiring a professional
money manager to manage the fund. These fees are assessed annually and can range from
less than ½ % to 2-½% of assets under management. All funds (both Load and No-Load)
have these fees.
Funds are required to disclose all fees and charges through their prospectus (document
given to prospective purchasers detailing fund objectives, expenses and investment return
history).

RESEARCH METHODOLOGY
Research Design
The research was “Descriptive” in nature as it dealt with describing the market and the
buying behavior of consumers. The research was designed to discover the potentiality of
the mutual fund market at Jaipur and also the survey of the investor’s to know about their
perception, the psychological factors associated with the product, the benefits they are
looking forth from the product and how do they rank in terms of risk and returns
associated with it. The research was carried out after dividing the market into segments
and the segment selected for the research was Jaipur Stock Exchange Limited (JSEL for
Stock Brokers) and Industrialists considering them the potential investors for this
investment avenue i.e. mutual fund.
Sample Design
The first step in order to accomplish the task was to draw a sample. To serve this
purpose, the sampling technique adapted was: “Random Sampling”. For that purpose
JSEL and Industrial areas at Jaipur was visited and maximum number of Stock Brokers
and Industrialists were surveyed with an avowed objective of minimizing bias and
maximizing the reliability of the data. Also, by adopting this procedure it was ensured

that the sample drawn would have the same composition and characteristics of the
population.
Type of Universe
The investors/potential investors were basically those from the JSEL and Industrialists at
Jaipur. The Universe comprised of the finite number of customers and it can be
considered homogenous in nature, to a great extent.
Size of the Sample
Since, the population was homogenous in nature to a large extent, hence a sample size of
25 respondents were taken into account to achieve the objective of the study. Other
prominent factors, kept in view while determining the size of the sample were size of the
population, the number of questions in the schedule, the sampling procedure adopted and
the time constraint. Thus a sample consisting of 25 respondents were chosen, which
fulfilled the requirements of efficiency, reliability and flexibility.
Method of Data Collection
Schedule {Performa containing set of Questions} was developed to conduct the survey.
The researcher put to the respondents the questions from the Performa and recorded the
replies.
The schedule was the best available alternatives for data collection. The other options
were that of Interview and Questionnaire. The schedule had many features which added

value to its use as a tool for accumulation of required information. Firstly, the segment
i.e. Industrialists segment which is very busy profession; the chances of the non-response
would have been very large. Moreover, if the mailing was used it would have made the
task of follow up extremely difficult.
Interview as a tool, is quite economical but it is difficult to record and retain the
information and especially if the queries include open ended questions. Moreover,
schedule serves the purpose of a structured form of the interview.
Though, schedule has limitations like, error on behalf of researcher while recording the
response or putting forward the query. It solved the purpose of data collection for the
project.
Contents of the Schedule
The schedule mainly comprised close- ended questions. A structured schedule was
preferred for the study. Also, the language of the questions was kept as simple as possible
and the questions were made as unambiguous as possible. The questions have been
arranged in a form to provide all the needed information in maximum possible
standardized form. The schedule consisted of questions, which probed for the preference
and the reasons for certain buying pattern of the respondents.
In order to evaluate the efficiency of the schedule, a pilot survey was carried out. On the
basis of the findings of the pilot survey, necessary alternations were made in the schedule
to make it more effective.

LIMITATIONS OF THE STUDY
 Due to time constraint the survey could be conducted only in Jaipur. This proved to
be a limitation because the results thus obtained cannot be accurately generalized for
the entire country.
 The nature of the project demanded the information to be collected in full details and
hence the questionnaire was a much lengthier one. Which took much time of the
subjects to fill and hence some of them did not give complete information.
 The sampling error that appeared due to the kind of sampling technique adopted.
 Indifference and lack of interest disposed by a few respondents leading to unauthentic
responses.
 Time proved to be a major constraint as far as collection and analysis of data was
concerned.
To overcome the above limitations and to minimize their impact on the findings of my
report I had to meet more respondents than my actual sample size.

Q 1. With what purpose do you
invest?
20% 15%
Savings
Returns
Tax benefit
30% 35% Safety
The investors’ main purpose of investment is good returns and then tax benefits. After
that safety of funds is considered and then the savings. And so their investment pattern
depends upon the above-mentioned factors.

Q.2. Are you aware of mutual funds as
an investment avenue?
10%
Yes
No
90%
Investors’ preference for financial assets is diverse and varied. 90% respondents said Yes
and 10% said that they are unaware, such a high percentage of aware investors indicated
that mutual fund concept is though recent in Jaipur, it is there in the mindset of the
investors.

Q.3. Have you ever invested in a
mutual fund?
22%
No
Yes
78%
Mutual fund is a recent phenomenon with regard to Jaipur. The study conveyed positive
sentiments towards it, almost 78% said that they had invested in mutual fund and only
22% said that they have not invested.

If no, is there any specific reasons for
the same?
23% Unassured
returns
45%
Risky
Both
32%
The findings were based on three parameters-

1. Un assured returns
2. Risky
3. Both
45% of the investors are reluctant due to unassured returns while 32% investors find
investment in MFs risky option while 23% don’t invest due to both the reasons.

Q.4. How would you rank an
investment in Mutual Funds on the
following parameters
17%
Liquidity
42%
15% Returns
Safety
Tax benefit
26%
Considering the fact that every individual has got his/her requirements regarding an
investment. Their investment decisions are mainly based upon-
1. Liquidity
2. Returns
3. Safety
4. Tax benefit
In present scenario the mutual fund investor basically looks for liquidity next feature is
returns, safety and then tax benefit.

Q.5. Would you like to invest in a low
return and low risk Mutual Fund?
40%
No
Yes
60%
Investors basically look for high return investments but still 40% investors prefer low
return and low risk mutual fund i.e. 100% debt fund.

Q.6. If in MF, then you invest in-
20%
Balanced Fund
Equity Fund
50%
Debt Fund
30%
50% of the investors make their investments in balance funds so as to have risk and
returns in equal ratio.
30% of the investors make their investments in equity funds so as to earn higher returns.
And,
20% of the investors make their investments in debt funds so as to have moderate returns
with low risk.

Q.7. Investors' readiness stage about
the products of MF
32% Unaware
36%
Aware
Interested
20% 12% Intending to invest
This forms the behavioral base for segmenting the market. A market consists of people in
different stages of readiness to buy a product. Some are unaware of, some are aware
some are interested and some are intending by the product.
36% of the respondents are intending to buy the product. But 32% are unaware about the
product 20% are interested and 12% are aware of the product of SCMF.

For individual investors
Q.1 What is the general investment

pattern.
21%
32% Mutual Funds
Insurance
11% Share Market
Real Estate
36%
The investors like industrialists have their main investment in share market, as they are
risk players i.e. 36 % and then 32 % have their investment in real estate and 21 % prefer
to invest in mutual funds and 11 % in Insurance sector.

Q.2 Schemes of MF most prefered
10% 5%
GDBF
15% GSSIF-IP
GSSIF-MT
70% GGSF
The individual investors prefer mainly GDBF i.e. 70% as it as it is most active trading
fund and it provides maximum returns with low risk.
GSSIF-IP attracts 15% of individual investors
GSSIF-MT is prefer by 10% investors and
5% prefer GGSF.

Q.3 Options under schemes of MF
prefered.
Growth
18%
7% Dividend Pay Out
75% Dividend
Reinvestment
75% of the investors prefer growth plan in the schemes as it provides long term capital
gain benefits along with the returns and then 18% prefer dividend reinvestment plan as
the dividend gets reinvested thereby increasing number of units and 7% investors prefer
dividend payout option which provides periodic returns.
For institutional investors

Q.1 What is the general investment
pattern.
5%
20% Current Account
Mutual Funds
Share Market
10% 65%
Others
65 % of the institutional investors have their investments in current account to avail the
liquidity and 20 % prefer to invest in share market so as to earn higher returns while 10 %
invest in mutual funds and 5 % in other investment avenues.

Q.2 Schemes of MF most prefered
40%
GCF
GFRF
60%
The 60 % institutional investors invests in GFRF as it provides

100 % capital preservation and adjust according to the increasing benchmark rate to give
higher returns and,
40% investors invest in GCF.
FINDINGS OF THE RESEARCH

1. Most of the respondents were either businessmen or professionals.
12%
6%
19%
63%
Businessmen
professionals
executives
Govt.Employee
2. Average range of the income was above Rs.5,00,000.

3. High Net-worth Individuals prefer private banks or foreign banks than the
Nationalized ones.
Private Banks Other

28% 32% Than ICICI Bank
ICICI Bank
Nationalise d Bank s
Foreign Banks
22% 18%
4. Most respondents were having FD’s and Saving A/c’s in their Banks.

5. Preferred time varies between mid-term to long-term i.e. 2 to 10 years.
6. Following chart depicts the asset allocation adopted by HNI’s.
48%
Financial Assets
Physical Assets
52%
7. Most High Net-worth Individuals maintain emergency funds.

8. Most High Net-worth Individuals are moderately aggressive.
A
6%
MA
58%
M
21%
MC
11%
C
4%
0% 20% 40% 60% 80%

9. These attributes are considered by High Net-worth Individuals before investing
their savings.
Attributes Definitely Somewhat Neutral Somewhat Not at all

Important Important Not Imp. Imp.
Time Period 60% 22% 8% 7% 3%
Return/Yield 88% 12% - - -
Risk 72% 28% - - -
Marketability 68% 26% 3% 2% 1%
Liquidity 55% 23% 12% 6% 4%
Safety 85% 15% - - -
Diversification 48% 24% 20% 8% -
10. High Net-worth Individuals prefer these financial instruments/Assets.
90%
78%
80%
72%
70%
64%
60%
60% 57% 56%
48%
50% 47%
42%
40% 36%
32%
28% 28% 28% 29%
30% 26% 25%
24%
18% 18%
20% 15% 16% 16% 15%
10%
8%
10%
4%
0%
1 2 3 4 5 6 7 8 9
Strongly preferred Preferred Less preferred

1-Bonds/Debentures 5-Real Assets
2-Equity Shares 6-Automobiles
3-Derivatives 7-Debt Oriented Mutual Funds
4-Gold/Precious Metals 8-Equity oriented Mutual Funds
9-Insurance

ANNEXURE-II
BIBLIOGRAPHY
Internet:
• www.icicibank.com
• www.rbi.org.in
• www.indiainfoline.com
Magazines:
• Business Today (Various Issues)
• Business World (Various Issues)
• Business India (Various Issues)
News Papers:
• Economic times
• Business standard

• Business line
• Financial express
Text books:
• “Research Methodology” By C.R.Kothari.
• “Investment Management” By Avadhani
• “Financial management” By Prasanna Chandra.
• “Investment” By William Sharpe

Acknowledgement: Submitted By:-Ramesh Rao 1

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Submitted By:- Ramesh Rao 3

Factors to be considered while Selecting an Investment

Submitted By:- Ramesh Rao 4

Submitted By:- Ramesh Rao 5

Submitted By:- Ramesh Rao 6

Marketability and Liquidity

• Marketability refers to the degree to which there is an active market in which an

Diversification is an important investment policy to consider in constructing a portfolio.

Submitted By:- Ramesh Rao 7

Submitted By:- Ramesh Rao 8

Submitted By:- Ramesh Rao 9

Are There Different Kinds of Stocks?

Submitted By:- Ramesh Rao 10

DEVELOPMENT OF MUTUAL FUNDS INDIA

Submitted By:- Ramesh Rao 11

 PHASE 1: July1964-nov.1987 (Unit Trust of India)

UTI 2,175 6,700 3.1%

 PHASE 2: 1987-1993 (Public Sector Competition)

Submitted By:- Ramesh Rao 12

UTI 11,507 38,247 5.2%

 PHASE 3: 1993-1996 (Emergence of Private Funds)

Submitted By:- Ramesh Rao 13

UTI 11,679 53,320 2.79%

UTI 8,312 64,276

 PHASE 4: 1996 (SEBI Regulation for Mutual Funds)

Submitted By:- Ramesh Rao 14

GROWTH OF MUTUAL FUND INDUSTRY IN INDIA ACROSS THE

Synoptic View Of Asset And Mobilization Across The Phases of Development

MUTUAL FUNDS INVESTMENTS

What Are Mutual Funds?

Submitted By:- Ramesh Rao 15

Closed-End Investment Companies – Closed end companies operate with a fixed

How does one make Money in a Mutual Fund?

Mutual funds have three potential sources of return:

Submitted By:- Ramesh Rao 16

What Types of Investments are Available through Mutual Funds?

Submitted By:- Ramesh Rao 17

Submitted By:- Ramesh Rao 18

TYPES OF MUTUAL FUNDS

(1) By Structure/Operational classification:

Submitted By:- Ramesh Rao 19

(2) By Investment Objective/ Portfolio Classification:

Submitted By:- Ramesh Rao 20

♦ Money Market Funds-

(3) Tax Saving Scheme

(4) Special Schemes

Submitted By:- Ramesh Rao 21

Submitted By:- Ramesh Rao 22

Submitted By:- Ramesh Rao 23

FUND SECURITIES ETC.)

Submitted By:- Ramesh Rao 24

Asset Management Company (Investment manager)

Asset Management Company as the name implies is to be a body corporate whose

WORKING OF ASSET MANAGEMENT COMPANY

Submitted By:- Ramesh Rao 25

ASSET MANAGEMENT COMPANY

Registrar Lend Legal Auditors

♦ REGISTRAR AND TRANSFER AGENT.

Submitted By:- Ramesh Rao 26

INVESTMENT ADVISORS may be appointed by AMC if it cannot afford to cope