KARVY

A
PROJECT REPORT
ON
MUTUAL FUND
AWARENESS & SCOPE

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ACKNOWLEDGEMENT

I take immense pleasure in completing this project and submitting this final project
report.
The whole summer internship period with KARVY STOCK BROKING LTD has
been full of learning and sense of contribution towards the organization. I would like to
thank KARVY STOCK BROKING LTD for giving us an opportunity of learning and
contributing through this project. I also take this opportunity to thank all those people that
made this experience a memorable one.
A successful project can never be prepared by the single efforts of the person to
whom project is assigned, but it also demand the help and guardianship of some
conversant person who helped the undersigned actively or passively in the completion of
successful project.

In this context as a student of <college> I would first of all like to express my

gratitude to for assigning me such a worthwhile topic “ MUTUAL FUNDS-
AWARENESS AND SCOPE ” to work upon in KARVY STOCK BROKING LTD.
During the actual project work has been a source of inspiration through his constant
guidance, personal interest, encouragement and help. I convey my sincere thanks to him.
In spite of his busy schedule he always found time to guide me through the project. I am
also grateful to him for reposing confidence in my abilities and giving me the freedom to
work on my project.
The project couldn’t have been complete without timely and vital help of other
office staff. Special thank to Mr. Vikrant Joshi, Mr. Vijay Singh, Ms. Sonal Chopra, Ms.
Sweta for their invaluable guidance, keen interest, cooperation, inspiration and of course
moral support through out my project session.

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INDEX
Content Pg no.

1. Executive Summary 4

2. Company Profile 5
3. Introduction
Mutual Funds 18
Advantage of MF 19
Performance of Mf in India 21
Types of MF 24
AMFI 29
Drawbacks 33
How to Compare MFs 34
4. Analysis 39
5. Project Findings and Recommendations 55
6. Bibliography 58
7. Questionnaire 59

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EXECUTIVE SUMMARY

The project titled “MUTUAL FUND-AWARENESS AND SCOPE” is being

carried out for KARVY STOCK BROKING LTD.
The evaluation of financial planning has been increased through decades, which is best
seen in customer rise. Now a day’s investment of saving has assumed great importance.

According to the study of the markets, it is being observed that markets are doing well in
Mutual fund. In near future a proper financial planning is required to invest money in all
type of financial product because there is good potential in market to invest.

In this project the great emphasis is given to the investor’s mind in respect to investment
in Mutual Fund .The needs and wants of the client is taken into consideration.

I hope KARVY, Pune will recognize this as well as take more references from this
project report. The main objective of this project is to know the Awareness of Mutual
Fund among investors, investing pattern of people of different financial background and
also scope of mutual fund in future.

IT sector has been given more emphasis for the study of the project because it is the only
sector where all type of Age group, Income class and different level of people are
represented. After analyzing the feedback the conclusion has been made that the Indian
financial market is having lots of potential customer the only thing is to give a proper
guidance to the prospective customers.

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COMPANY PROFILE

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KARVY CONSULTANTS LTD.

KARVY is one of the premier integrated financial intermediaries in the country, which is
into businesses such as Merchant Banking, Stock Broking, Depository Participant
Services, Financial Products Distribution, Mutual Fund Servicing and Registrar and
Transfer Agents.

BACKGROUND…
In 1982, a group of Hyderabad-based practicing Chartered Accountants started Karvy
Consultants Limited with a capital of Rs.1, 50,000 offering auditing and taxation services
initially. Later, it forayed into the Registrar and Share Transfer activities and
subsequently into financial services. All along, Karvy's strong work ethic and
professional background leveraged with Information Technology enabled it to deliver
quality to the individual.

A decade of commitment, professional integrity and vision helped Karvy achieve a

leadership position in its field when it handled the largest number of issues ever handled
in the history of the Indian stock market in a year. Thereafter, Karvy made inroads into a
host of capital-market services, - corporate and retail -, which proved to be a sound
business synergy.

Today, Karvy has access to millions of Indian shareholders, besides companies, banks,
financial institutions and regulatory agencies. Over the past one and half decades, Karvy
has evolved as a veritable link between industry, finance and people. In January 1998,
Karvy became the first Depository Participant in Andhra Pradesh. An ISO 9002
company, Karvy's commitment to quality and retail reach has made it an integrated
financial services company.

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The business of KCL includes:

o Equity services
o Mutual Funds Services
o Insurance advisory
o Tax Advisory
Home Loans
KCL caters to both the individuals and the corporate clients.

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Group Mission :
“To serve as a veritable link between people, finances and industry.”

KARVY GROUP COMPANIES

(1) 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 Karvy
ventured into, company have now transferred this business into a joint venture with
Computer share Limited of Australia, the world’s largest registrar. With the advent of
depositories in the Indian capital market and the relationships that Company have created
in the registry business, Karvy believe that they were best positioned to venture into this
activity as a Depository Participant. Karvy 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, Karvy 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, they have transferred this
business to Karvy Stock Broking Limited (KSBL), their associate and a member of NSE,
BSE and HSE.
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 team of experts on various financial aspects like ‘Sector

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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 customized financial measure, makes this site extremely informative about
investment options, market trends, news and also about our their company and each of
the services offered here.

(2) KARVY STOCK BROKING LIMITED

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.
Karvy is a Member of National Stock Exchange (NSE), The Bombay Stock Exchange
(BSE), and The Hyderabad Stock Exchange (HSE).

(3) KARVY INVESTORS SERVICES LIMITED

Merchant Banking- Recognized as a leading merchant banker in the country, Karvy 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 company focus in this sector.

Karvy quality professional team and their work-oriented dedication have propelled
company to offer value-added corporate financial services and act as a professional
navigator for long term growth of company’s clients. Karvy financial advice and
assistance in restructuring, divestitures, acquisitions, de-mergers, spin-offs, joint

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ventures, privatization and takeover defense mechanisms have elevated company

relationship with the client to one based on unshakable trust and confidence.

(4) KARVY COMPUTERSHARE PVT. LIMITED

Karvy have traversed wide spaces to tie up with the world’s largest transfer agent, the
leading Australian company, Computershare Limited. The company that services more
than 75 million shareholders across 7000 corporate clients and makes its presence felt in
over 12 countries across 5 continents has entered into a 50-50 joint venture with
KARVY.

Mutual Fund Services

Karvy 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 company offer. Besides providing the
entire back office processing, Karvy provide the link between various Mutual Funds and
the investor, including services to the distributor, the prime channel in this operation.
Karvy 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. www.karvymfs.com

Issue Registry
In company voyage towards becoming the largest transaction-processing house in the
Indian Corporate segment, KARVY have mobilized funds for numerous corporate, and
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
company the No.1 slot in the business. Karvy is the first Registry Company to receive
ISO 9002 certification in India that stands testimony to its stature

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Corporate Shareholder Services

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.

(5) KARVY GLOBAL SERVICES LIMITED

It is 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
company enter the global arena with the confidence of being able to deliver and deliver
well.
Here company offers several delivery models on the understanding that business needs
are unique and therefore only a customized service could possibly fit the bill. KARVY
service matrix has permutations and combinations that create several options to choose
from.
KARVY is in re-engineering and managing processes or delivering new efficiencies,
company’s service meets up to the most stringent of international standards. Their
outsourcing models are designed for the global customer and are backed by sound
corporate and operations philosophies, and domain expertise. Providing productivity
improvements, operational cost control, cost savings, improved accountability and a
whole gamut of other advantages.
KARVY operate in the core market segments that have emerging requirements for
specialized services. Their wide vertical market coverage includes Banking, Financial

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and Insurance Services (BFIS), Retail and Merchandising, Leisure and Entertainment,
Energy and Utility and Healthcare.

(6) KARVY COMMODITIES BROKING LIMITED

At Karvy Commodities, they are focused on taking commodities trading to new

dimensions of reliability and profitability. They have made commodities trading, an
essentially age-old practice, into a sophisticated and scientific investment option.

Company enables 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.

The technological and infrastructure strengths and especially the street-smart skills make
them an ideal broker. Their service matrix is holistic with a gamut of advantages, the first
and foremost being their legacy of human resources, technology and infrastructure that
comes from being part of the Karvy Group.

Their 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. A dedicated team committed to giving hassle-free
service while the brokerage rates offered are extremely competitive provides further,
personalized service here.

Karvy’s commitment to excel in this sector stems from the immense importance that
commodity broking has to a cross-section of investors & dash; farmers, exporters,
importers, manufacturers and the Government of India itself.

(7)KARVY INSURANCE BROKING PRIVATE LIMITED

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At Karvy Insurance Broking Pvt. Ltd., they provide both life and non-life insurance
products to retail individuals, high net-worth clients and corporate. With the opening up
of the insurance sector and

with a large number of private players in the business, they are in a position to provide
tailor made policies for different segments of customers. In their journey to emerge as a
personal finance advisor, they will be better positioned to leverage their relationships
with the product providers and place the requirements of their 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 their customers.

KARVY have wide national network, spanning the length and breadth of India, further
supports these advantages. A dedicated team committed in giving hassle-free service to
the clients provides further, personalized service here

KARVY Alliances

Karvy Computershare Private Limited is a 50:50 joint venture of Karvy Consultants

Limited and Computershare Limited, Australia. Computershare Limited is world's largest
-- and only global -- share registry, and a leading financial market services provider to the
global securities industry.
The joint venture with Computershare, reckoned as the largest registrar in the world,
servicing over 60 million shareholder accounts for over 7,000 corporations across eleven
countries spread across five continents. Computershare manages more than 70 million
shareholder accounts for over 13,000 corporations around the world.
Karvy Computershare Private Limited, today, is India's largest Registrar and Share
Transfer Agent servicing over 300 corporate and mutual funds and 16 million investors.

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Financial Products Distribution

There is paradigm shift in market perception by an investor with an ongoing transition to
a customer. With a variety of financial products available in the market today and better
awareness amongst the potential customer segment, Karvy has positioned itself as the
ultimate service

provider by its retail arm – KARVY- THE FINAPOLIS. This gives complete focus to
the retail segment giving all financial services and products under one roof. The unique
facet of these

services is not only offering a choice within a product but also evaluating the same in the
light of customer’s need. Karvy is supported in this endeavor by its vast network of
customer service centers spread nationwide.

With the emergence of private insurance sector, Karvy has taken another step forward
into its distribution network by tying up with private insurance companies. Karvy has in
place a skilled
insurance team that distributes all types of insurance products depending on individual
preferences. Karvy has made inroads into retail market segment offering a plethora of
financial products viz. Personal loans, Housing loans, Car Loans, Investment
opportunities in bonds, mutual finds, equity and fixed deposits and tax advisory services.

Karvy has a specialized team in place along with a widespread network of sub brokers
that ensures the distribution of various IPOs and fixed deposits to every corner of the
country. Karvy has the added advantage of an extensive network on branches and
investor centers, which entails better; reach thereby increasing the mobilization of funds.

Apart from a comprehensive database, Karvy launches various methods like mailers,
participation in exhibitions, and investor conferencing to increase the spread of potential

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customers. Today, Karvy is looking at telemarketing as an additional tool to enhance its

reach and retain its position among the top five mobilizers in the country.

Quality Policy

To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, by
combining its human and technological resources, to provide superior quality financial
services. In the process, Karvy will strive to exceed Customer's expectations.

Quality Objectives

As per the Quality Policy, Karvy will:

o Build in-house processes that will ensure transparent and harmonious relationships
with its clients and investors to provide high quality of services.

o Establish a partner relationship with its investor service agents and vendors that will
help in keeping up its commitments to the customers.

o Provide high quality of work life for all its employees and equip them with adequate
knowledge & skills so as to respond to customer's needs.

o Continue to uphold the values of honesty & integrity and strive to establish
unparalleled standards in business ethics.

o Use state-of-the art information technology in developing new and innovative

financial products and services to meet the changing needs of investors and clients.

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o Strive to be a reliable source of value-added financial products and services and

constantly guide the individuals and institutions in making a judicious choice of it.

o Strive to keep all stake-holders (shareholders, clients, investors, employees, suppliers

and regulatory authorities) proud and satisfied.

Achievements

• Among the top 3 stock brokers in India (4% of NSE volumes)

• India's No. 1 Registrar & Securities Transfer Agents

• Top most 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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INTODUCTION TO
MUTUAL FUNDS

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Mutual Funds
A mutual fund is simply a financial intermediary that allows a group of investors to pool
their money together with a predetermined investment objective. The mutual fund will
have a fund manager who is responsible for investing the pooled money into specific
securities (usually stocks or bonds). When you invest in a mutual fund, you are buying
shares (or portions) of the mutual fund and become a shareholder of the fund.

Mutual funds are one of the best investments ever created because they are very cost
efficient and very easy to invest in (you don't have to figure out which stocks or bonds to
buy). By pooling money together in a mutual fund, investors can purchase stocks or
bonds with much lower trading costs than if they tried to do it on their own. But the
biggest advantage to mutual funds is diversification.

A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through
these investments and the capital appreciation realized are shared by its unit holders in
proportion to the number of units owned by them. Thus a Mutual Fund is the most
suitable investment for the common man as it offers an opportunity to invest in a
diversified, professionally managed basket of securities at a relatively low cost. The flow
chart below describes broadly the working of a mutual fund:

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Mutual Fund Operation Flow Chart

MUTUAL FUND ADVANTAGE
Mutual Fund Investing vs. Stock Investing
It seems strange to compare mutual funds to stocks since mutual funds are primarily
composed of stocks, but it is important to distinguish the two because there are some
notable advantages to using mutual funds.

Get Focused
Investing in individual stocks can be fun because each company has a unique story.
However, it is important for people to focus on making money. Investing isn't a game.
Your financial future depends on where you put you hard earned dollars and it shouldn't
be taken lightly.

Diversification
There is no greater advantage to using mutual funds than diversification. Do you honestly
believe wealthy investors purchase just a couple of stocks? Of course not! If they are not
using mutual funds (many do), than they are purchasing a large number of stocks. Smart
investors diversify because it greatly reduces risk without sacrificing returns.

Professional Management
By purchasing mutual funds, you are essentially hiring a professional manager at an
especially inexpensive price. It would be a bit cocky to think that you know more than
mutual fund manager. These managers have been around the industry for a long time and

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have the academic credentials to back it up. Saying you could outperform a mutual fund
manager is similar to a football fan sitting on their couch saying "I could have made that
catch" -possible, but not likely.
Even if some of us are better at picking stocks than a professional and their support staff,
most of us would not want to spend the amount of time it takes to watch, research and
trade the market on a daily basis.

Efficiency
By pooling investors' monies together, mutual fund companies can take advantage of
economies of scale. With large sums of money to invest, they often trade commission-
free and have personal contacts at the brokerage firms.

Ease of Use
Can you imagine keeping track of a portfolio consisting of hundreds of stocks? The
bookkeeping duties involved with stocks are much more complicated than owning a
mutual fund. If you are doing your own taxes, or are short on time, this can be a big deal.

Liquidity
If you find yourself in need of money in a short amount of time, mutual funds are highly
liquid. Simply put in your order during the day and when the market closes a check will
be sent to you or you can have it wired to a bank account. Stocks can be much more
difficult depending on what kinds of stocks you are invested in. CD's offer no liquidity
(not without a hefty fee) and bonds can be difficult, too. Some mutual funds also carry
check writing privileges, which means you can actually write checks from the account,
similar to your checking account at the bank.

Cost

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Mutual funds are excellent for the new investors because you can invest small amounts of
money and you can invest at regular intervals with no trading costs. Stock investing,
however, carries high transaction fees making it difficult for the small investor to make
money. If an investor wanted to put in $100 a month into stocks and the broker charged
$15 per transaction, their investment is automatically down 15 percent every time they
invest. That is not a good way to start off!
Wealthy stock investors get special treatment from brokers and wealthy bank account
holders get special treatment from the banks, but mutual funds are non-discriminatory. It
doesn't matter whether you have $50 or $500,000, you are getting the exact same
manager, the same account access and the same investment.

Risk
In general, mutual funds carry much lower risk than stocks. This is primarily due to
diversification (as mentioned above). Certain mutual funds can be riskier than individual
stocks, but you have to go out of your way to find them.
With stocks, one worry is that the company you are investing in goes bankrupt. With
mutual funds, that chance is next to nil. Since mutual funds typically hold anywhere from
25-5000 companies, all of the companies that it holds would have to go bankrupt.
I won't argue that you shouldn't ever invest in individual stocks, but I do hope you see the
advantages of using mutual funds and make the right choice for the money that you really
care about.

Mutual Funds Industry in India

The origin of mutual fund industry in India is with the introduction of the concept of
mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated
from the year 1987 when non-UTI players entered the industry.

In the past decade, Indian mutual fund industry had seen dramatic improvements, both
quality wise as well as quantity wise. Before, the monopoly of the market had seen an
ending phase; the Assets Under Management (AUM) was Rs. 67bn. The private sector

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entry to the fund family rose the AUM to Rs. 470 bn in March 1993 and till April 2004, it
reached the height of 1,540 bn.

Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is
less than the deposits of SBI alone, constitute less than 11% of the total deposits held by
the Indian banking industry.
The main reason of its poor growth is that the mutual fund industry in India is new in the
country. Large sections of Indian investors are yet to be intellectuated with the concept.
Hence, it is the prime responsibility of all mutual fund companies, to market the product
correctly abreast of selling.
The mutual fund industry can be broadly put into four phases according to the
development of the sector. Each phase is briefly described as under.

First Phase - 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up
by the Reserve Bank of India and functioned under the Regulatory and administrative
control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the
Industrial Development Bank of India (IDBI) took over the regulatory and administrative
control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the
end of 1988 UTI had Rs.6, 700 crores of assets under management.

Second Phase - 1987-1993 (Entry of Public Sector Funds)

Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by Can bank
Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank
Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92).
LIC in 1989 and GIC in 1990. The end of 1993 marked Rs.47, 004 as assets under
management.

Third Phase - 1993-2003 (Entry of Private Sector Funds)

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With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the
year in which the first Mutual Fund Regulations came into being, under which all mutual
funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer
(now merged with Franklin Templeton) was the first private sector mutual fund registered
in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the
SEBI (Mutual Fund) Regulations 1996.The number of mutual fund houses went on
increasing, with many foreign mutual funds setting up funds in India and also the
industry has witnessed several mergers and acquisitions. As at the end of January 2003,
there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of
India with Rs.44, 541 crores of assets under management was way ahead of other mutual
funds.

Fourth Phase - since February 2003

This phase had bitter experience for UTI. It was bifurcated into two separate entities. One
is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29, 835 crores
(as on January 2003). The Specified Undertaking of Unit Trust of India, functioning
under an administrator and under the rules framed by Government of India and does not
come under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76, 000 crores of
AUM and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector
funds, the mutual fund industry has entered its current phase of consolidation and growth.
As at the end of March 2006, there were 29 funds.

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Types of Mutual Funds Schemes in India

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial
position, risk tolerance and return expectations etc. The table below gives an overview
into the existing types of schemes in the Industry.

TYPES OF MUTUAL FUND SCHEMES

• By Structure
o Open - Ended Schemes
o Close - Ended Schemes
o Interval Schemes

• By Investment Objective
o Growth Schemes
o Income Schemes
o Balanced Schemes
o Money Market Schemes

• Other Schemes
o Tax Saving Schemes
o Special Schemes
 Index Schemes
 Sector Specific Schemes

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TYPES OF MUTUAL FUNDS

Mutual Funds have specific investment objectives such as growth of capital, safety
of principal current income or tax exempt income, one can select one fund or any number
of different funds to help one meets ones specific goals. In general mutual fund fall under
3 general categories: -

 Equity fund invest in shares of common stocks.

 Fixed income funds invest in government or corporate securities, which offer
fixed rate of returns.
 Balanced fund invest in a combination of both stocks and bonds

OPEN ENDED SCHEMES:-

Open-ended schemes do not have a fixed maturity period. Investors can buy or sell
units at NAV- related prices from and to the mutual fund on any business day. These
schemes have unlimited capitalization, open-ended schemes do not have a fixed maturity,
there is no cap on the amount you can buy from the fund and the unit capital keep
growing. These funds are not generally listed on any exchange.
Open-ended schemes are preferred for their liquidity. Such funds can issue and
redeem units any time during the life of schemes. Hence unit capital of open-ended funds
can fluctuate on a daily basis. The advantages of open-ended schemes are: -

1. Any time exit option

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2. Any time enter option.

CLOSED ENDED SCHEMES:-

Close-ended schemes have fixed maturity periods. Investors can buy into these
funds during the period when these funds are open in the initial issue. After that such
scheme cannot issue new units except in case of bonus or right issue. However after the
initial issue you can buy or sell units

of the schemes on the stock exchange where they are listed. The market price of the unit
could vary from the NAV of the schemes due to demand and supply factor

AGGRESSIVE GROWTH FUNDS :-

These funds seek to provide maximum growth of capital with secondary emphasis
on dividend or interest income. They invest in common stocks with a high potential for
rapid growth and capital appreciation.
Aggressive growth funds are suitable for those investors who can afford to assume
the risk of potential loss in value of their investment in the hope of achieving substantial
and rapid gains. They are not suitable for investors who must conserve their principal or
who must maximize their current income.

GROWTH FUNDS:-

Like aggressive growth funds, growth fund generally invests in stocks for growth
rather than income. They are considered more conservative in their approach because
they usually invest in established companies to achieve long-term growth. Growth fund
provides low current income but the investor principal is more stable then it would be in
an aggressive growth fund. While the growth potential may be less over the short term,
many growth funds have superior long-term performance records.

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KARVY

These funds are suitable for growth oriented investors but not investors who are
unable to assume risk or who are dependent on maximizing current income from there
investments.

GROWTH AND INCOME FUNDS:-

Growth and income funds seek long-term growth of capital as well as current
income. The investments strategies use to reach these goals vary among funds.
Growth and income funds have low to moderate stability of principal and moderate
potential for current income and growth. They are suitable for investors who can assume
some risk to achieve growth of capital but want to maintain a moderate level of current
income.

FIXED INCOME FUNDS:-

The goal of fixed income fund is to provide high current income consistent with
the level of capital. Growth of capital is of secondary importance.
Fixed income funds offer a higher level of current income than money market
funds, but a lower stability of principal. Fixed income funds are suitable for investors
who want to maximize current income and who can assume a degree of capital risk in
order to do so.

EQUITY FUNDS:-

Funds that invest in stocks represent the largest category of mutual fund. Generally
the investment objective of this class of fund is long-term capital growth with some
income. There are however many type of equity funds.

BALANCED FUNDS:-

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KARVY

The Balanced funds aims to provide both growth and income. These funds invest in
both shares and fixed income securities in the proportion indicated in their offer
documents. It is an idea for investors who are looking for the combinations of income and
moderate growth.

MONEY MARKET FUNDS/ LIQUID FUNDS:-

For the cautious investors these funds provide a very high stability of principal
while seeking a moderate to high current income. They invest in highly liquid; virtually
risk free, short-term debt securities of agencies of the Indian government, banks and
corporation and treasury bills. Because of their short-term investments, money market
mutual funds are able to keep a virtually constant unit price; only the yield fluctuates.
Money market funds are suitable for those investors who want high stability of principal
and current income with immediate liquidity.

SPECIALITY / SECTOR FUNDS:-

These funds invest in securities of a specific industry or sector of the economy such
as health care, technology, leisure, utilities or precious metals. The funds enable investor
to diversify holding among many companies within an industry, a more conservative
approach than investing directly in one particular company.
Sector funds offer a opportunity for sharp capital gains in cases where the fund’s
industry is “in favor” but also entail the risk of capital losses when the industry is out of
favor. While sectors funds restrict holdings to a particular industry, other specialty funds
such as index funds gives investors a broadly diversified portfolio and attempt to mirror
the performance of various market averages.

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KARVY

Association of Mutual Funds in India (AMFI)

With the increase in mutual fund players in India, a need for mutual fund association in
India was generated to function as a non-profit organisation. Association of Mutual
Funds in India (AMFI) was incorporated on 22nd August, 1995.

AMFI is an apex body of all Asset Management Companies (AMC) which has been
registered with SEBI. Till date all the AMCs are that have launched mutual fund schemes
are its members. It functions under the supervision and guidelines of its Board of
Directors.

Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to
a professional and healthy market with ethical lines enhancing and maintaining standards.
It follows the principle of both protecting and promoting the interests of mutual funds as
well as their unit holders.

The objectives of Association of Mutual Funds in India

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KARVY

The Association of Mutual Funds of India has certain defined objectives, which
juxtaposes the guidelines of its Board of Directors. The objectives are as follows:

• This mutual fund association of India maintains high professional and ethical
standards in all areas of operation of the industry.

• It also recommends and promotes the top class business practices and code of
conduct which is followed by members and related people engaged in the
activities of mutual fund and asset management. The agencies who are by any
means connected or involved in the field of capital markets and financial services
also involved in this code of conduct of the association.

• AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual
fund industry.

• Association of Mutual Fund of India do represent the Government of India, the

Reserve Bank of India and other related bodies on matters relating to the Mutual
Fund Industry.

• It develops a team of well-qualified and trained Agent distributors. It implements

a programme of training and certification for all intermediaries and other engaged
in the mutual fund industry.

• AMFI undertakes all India awareness programme for investors in order to

promote proper understanding of the concept and working of mutual funds.

• At last but not the least association of mutual fund of India also disseminate
information’s on Mutual Fund Industry and undertakes studies and research either
directly or in association with other bodies.

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KARVY

The sponsorers of Association of Mutual Funds in India

Bank Sponsored

• SBI Fund Management Ltd.

• BOB Asset Management Co. Ltd.
• Canbank Investment Management Services Ltd.
• UTI Asset Management Company Pvt. Ltd.

Institutions

• GIC Asset Management Co. Ltd.

• Jeevan Bima Sahayog Asset Management Co. Ltd.

Private Sector

Indian:-

• BenchMark Asset Management Co. Pvt. Ltd.

• Cholamandalam Asset Management Co. Ltd.
• Credit Capital Asset Management Co. Ltd.
• Escorts Asset Management Ltd.
• JM Financial Mutual Fund
• Kotak Mahindra Asset Management Co. Ltd.
• Reliance Capital Asset Management Ltd.
• Sahara Asset Management Co. Pvt. Ltd
• Sundaram Asset Management Company Ltd.

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KARVY

• Tata Asset Management Private Ltd.

Predominantly India Joint Ventures:-

• Birla Sun Life Asset Management Co. Ltd.

• DSP Merrill Lynch Fund Managers Limited
• HDFC Asset Management Company Ltd.

Predominantly Foreign Joint Ventures:-

• ABN AMRO Asset Management (I) Ltd.

• Alliance Capital Asset Management (India) Pvt. Ltd.
• Deutsche Asset Management (India) Pvt. Ltd.
• Fidelity Fund Management Private Limited
• Franklin Templeton Asset Mgmt. (India) Pvt. Ltd.
• HSBC Asset Management (India) Private Ltd.
• ING Investment Management (India) Pvt. Ltd.
• Morgan Stanley Investment Management Pvt. Ltd.
• Principal Asset Management Co. Pvt. Ltd.
• Prudential ICICI Asset Management Co. Ltd.
• Standard Chartered Asset Mgmt Co. Pvt. Ltd.

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KARVY

Drawbacks of Mutual Funds

Mutual funds have their drawbacks and may not be for everyone:

• No Guarantees: No investment is risk free. If the entire stock market declines in

value, the value of mutual fund shares will go down as well, no matter how
balanced the portfolio. Investors encounter fewer risks when they invest in mutual
funds than when they buy and sell stocks on their own. However, anyone who
invests through a mutual fund runs the risk of losing money.

• Fees and commissions: All funds charge administrative fees to cover their day-
to-day expenses. Some funds also charge sales commissions or "loads" to
compensate brokers, financial consultants, or financial planners. Even if you don't
use a broker or other financial adviser, you will pay a sales commission if you buy
shares in a Load Fund.

• Taxes: During a typical year, most actively managed mutual funds sell anywhere
from 20 to 70 percent of the securities in their portfolios. If your fund makes a
profit on its sales, you will pay taxes on the income you receive, even if you
reinvest the money you made.

• Management risk: When you invest in a mutual fund, you depend on the fund's
manager to make the right decisions regarding the fund's portfolio. If the manager
does not perform as well as you had hoped, you might not make as much money

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KARVY

on your investment as you expected. Of course, if you invest in Index Funds, you
forego management risk, because these funds do not employ managers.

How to compare mutual funds

Choosing a mutual fund seems to have become a very complex affair lately. There are no
dearth of funds in the market and they all clamor for attention. The most crucial factor in
determining which one is better than the rest is to look at returns. Returns are the easiest
to measure and compare across funds.
At the most trivial level, the return that a fund gives over a given period is just the
percentage difference between the starting Net Asset Value (price of unit of a fund) and
the ending Net Asset Value.
Returns by themselves don't serve much purpose. The purpose of calculating returns is to
make a comparison. Either between different funds or time periods. And, you must be
careful not to make a mistake here. Or else, you could end up investing in the wrong
funds.

 Invest in various funds, not one

Absolute returns
Absolute returns measure how much a fund has gained over a certain period. So you look
at the NAV on one day and look at it, say, six months or one year or two years later. The
percentage difference will tell you the return over this time frame.
But when using this parameter to compare one fund with another, make sure that you
compare the right fund. To use the age-old analogy, don't compare apples with oranges.

So if you are looking at the returns of a diversified equity fund (one that invests in
different companies of various sectors), compare it with other diversified equity funds.

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KARVY

Don't compare it with a sector fund which invests only in companies of a particular
sector.
Don't even compare it with a balanced fund (one that invests in equity and fixed return
instruments).

 Why has my fund not declared a dividend?

Benchmark returns

This will give you a standard by which to make the comparison. It basically indicates
what the fund has earned as against what it should have earned.

A fund's benchmark is an index that is chosen by a fund company to serve as a standard

for its returns. The market watchdog, the Securities and Exchange Board of India, has
made it mandatory for funds to declare a benchmark index.

In effect, the fund is saying that the benchmark's returns are its target and a fund should
be deemed to have done well if it manages to beat the benchmark.

Let's say the fund is a diversified equity fund that has benchmarked itself against the
Sensex. So the returns of this fund will be compared vis-a-viz the Sensex.

Now if the markets are doing fabulously well and the Sensex keeps climbing upwards
steadily, then anything less than fabulous returns from the fund would actually be a
disappointment.

If the Sensex rises by 10% over two months and the fund's NAV rises by 12%, it is said
to have outperformed its benchmark. If the NAV rose by just 8%, it is said to have
underperformed the benchmark.

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KARVY

But if the Sensex drops by 10% over a period of two months and during that time, the
fund's NAV drops by only 6%, then the fund is said to have outperformed the benchmark.

A fund's returns compared to its benchmark are called its benchmark returns.

At the current high point in the stock market, almost every equity fund has done
extremely well but many of them have negative benchmark returns, indicating that their
performance is just a side-effect of the markets' rise rather than some brilliant work by
the fund manager.

 The best mutual fund scheme for you

Time period

The most important thing while measuring or comparing returns is to choose an

appropriate time period.

The time period over which returns should be compared and evaluated has to be the same
over which that fund type is meant to be invested in.
If you are comparing equity funds then you must use three to five year returns. But this is
not the case of every other fund.
For instance, cash funds are known as ultra short-term bond funds or liquid funds that
invest in fixed return instruments of very short maturities. Their main aim is to preserve
the principal and
earn a modest return. So the money you invest will eventually be returned to you with a
little something added.
Investors invest in these funds for a very short time frame of around a few months. So it
is alright to compare these funds on the basis of their six month returns.

Market conditions

It is also important to see whether a fund's return history is long enough for it to have
seen all kinds of market conditions.

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KARVY

For example, at this point of time, there are equity funds that were launched one to two
years ago and have done very well. However, such funds have never seen a sustained
declining market

(bear market). So it is a little misleading to look at their rate of return since launch and
compare that to other funds that have had to face bad markets.

If a fund has proved its mettle in a bear market and has not dipped as much as its
benchmark, then the fund manager deserves a pat on the back.

 Why you should watch over your mutual fund

Final checklist
Here are some quick pointers when comparing funds.
- Compare funds that are similar. For instance, compare Alliance Equity with Franklin
India Prima. Both are diversified equity funds. Similarly, compare UTI Auto with J M
Auto, both being auto sector funds or Birla Midcap with Magnum Midcap, both being
funds that invest in mid-cap companies. Don't compare the performance of Alliance
Equity with UTI Auto or even Alliance Equity with Birla Midcap.
- When returns are compared, make sure that the time period is identical. Or else, you
may be looking at the one-year returns for one fund and the three-year returns for
another. For instance, if you were told that the return of HDFC Equity was 59.72% and
that of Franklin India Prima was 61.74%, it would be misleading.
Because the return stated of HDFC Equity is a one year return while that of Franklin
India Prima is the three-year return.
A good comparison would be:
Returns Franklin India Prima HDFC Equity
1 year 81.13% 59.72%
3 year 61.74% 47.52%
5 year 39.58% 27.04%

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KARVY

- Compare a fund with it's own stated benchmark, not another. For instance, Fidelity
Equity, Escorts Growth and BoB Growth are all diversified equity funds with different
benchmarks.

Fidelity Equity - BSE 200

Escorts Growth - S&P CNX Nifty
BoB Growth – Sensex

While there are other factors that have to be considered when investing in a mutual fund,
returns is the most important. So make sure you do your homework right on this count.

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KARVY

ANALYSIS

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KARVY

PROBLEM STATEMENT:-

Due to the falling Rate of Interest on Bank deposits, it is obvious that

Investment in Mutual Fund will grow in year to come. However lack of Awareness of
Mutual Fund is a hindering factor in expected growth of Mutual Fund Business.
Under noted problems are envisaged in this area:
• Difficult in convincing people for investment.
• Difficult to change mind of the investor according to age and
Profession.
• Difficult to make an approach to investors.
• Difficult to take an appointment with professional people.
• Difficult to get the documents required for formalities from investors
• Difficult to overcome an impassionate person who wants return in less time.
• Difficult to follow up the people whose names are being stored in a data.
• Difficult to remove the fear of risk from the minds of investors.

OBJECTIVE OF STUDY:-

In view of the problem cited above, the study aims at analyzing the following major
issues:

• To know the awareness of MUTUAL FUND among people.

• To know the different Asset management companies involve in MUTUAL FUND.
• To know the different aspects of MUTUAL FUND according to different age,
profession etc.

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KARVY

• To see the interest of people in investing in MUTUAL FUNDS.

• To know the future of MUTUAL FUNDS in India.
• To know the different attitudes of people regarding risk, rate of return, period of
investment etc.
• To study the diversification of mutual fund.

METHODOLOGY OF STUDY:

Research can be defined as a systemized effort to gain new knowledge. A research

is carried out by different methodologies which have their own pros and cons. Research
methodology is a way to solve research in study and solving research problems along
with logic behind them are defined through research methodology. Thus while talking
about research methodologies we are not only talking of research methods but also
consider the logic behind the methods. We are in context of our research studies and
explain why it is being used a particular method or technique and why the others are not
used. So that research result is capable of being evaluated either by researcher himself or
by others.

RESEARCH METHODOLOGY:

Research has its special significance in solving various operational and planning problem
of business and industry. Research methodology is a way to systematically analyze the
research problem.

ASSUMPTIONS:

1. It has been assumed that sample of hundred represents the whole population
2. The information given by the customer is unbiased

LITERATURE SURVEY:

The project is based on pure findings of facts

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KARVY

Development of Working Hypothesis: The hypothesis could be developed by

discussing with the consulting department heads and guides about this exploratory
research and reach to the conclusion that the data is to be collected by personal
interaction with the clients, asking them about their investment planning and their need
for financial advisory service from KARVY Stock Broking Ltd.
First of all are they aware of tax and investment planning or not and then analyzing the
findings to reach to the objectives of research.

COLLECTION OF DATA:
This research is solely based on primary research done by means of questionnaires
targeted to respondents who primarily belong to the business and service sector. The
sample size is 100.
a. Sampling Methods: A sample is the representative of the populations which will
predict the behaviors of the whole universe
b. The sampling size put under 2 categories: Probability Sampling and Non
Probability Sampling.

EXECUTION OF PROJECT

It is very essential in the research process to know the accuracy of the finding’s which
depends on how systematically the study has been carried out so that it can make sense.
We have executed the project after prior discussion with our guide and structured in the
following steps:
a. Preparation of a questionnaire
b. The focal point of the designing the questionnaire was to comprehend the current
investment scenario
c. This questionnaire was primarily aimed to respondents who belong to the service
and business class people
d. The questionnaires were discussed through personal interface with the
respondents

LIMITATIONS OF STREAMLINING RESULTS:

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KARVY

Every work has its own limitations. Limitations are extent to which the process
should not exceed. The following limitations for the project are:
1. Duration of project was not enough to make our conclusion on such a vast
subject. Time constraints has also become a major limitation
2. The sample size taken for drawing the conclusion was not sizeable
3. Investor ignorance was faced during discussions with respondents

Q1. Do you invest regularly?

YES 89
NO 11
TOTAL 100

Percentage of people making any

investment

11%

YES
NO

89%

It has been observed that approximately 90% of the correspondents invest in some
or the other financial instrument. Though the percentage of choice of investment
may vary due to different factors such as age, education, risk etc.

Q2. Do you invest using-

a. Scientific Tools b. By Intuition

Scientific Tools 47

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KARVY

By Intuition 53
Total 100

It has been observed that there is no major difference between the percentage of
people who invest using scientific tools and those whose who believe in their
intuition but it is seen that the younger generation is more leaning towards usage of
scientific tools than their peers.

Methods of investment

47%
scientific tools
by intution
53%

Q3. What are you preferred investment priorities?

a. Insurance

YES 77
NO 23
TOTAL 100

LIC

23%

YES
NO

77%

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KARVY

A major chunk who have been interviewed it has been observed that almost 80%
have some kind of insurance policy. It has also been observed that though LIC is a
public sector undertaking, people of all ages have more faith in it as compared to
other private sector companies.

b. Bank (Fixed deposit)

YES 49
NO 41
TOTAL 100

Banks(Fixed Deposit)

YES
NO

There is no major difference between the number of people who prefer keeping
their money in fixed deposit and who don’t opt for it. There is however a growing
concern about the falling interest rate in banks on fixed deposit.

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KARVY

c. Bonds & Debentures

YES 34
NO 66
TOTAL 100

BONDS & Debentures

YES
NO

It has been observed that only 34% they have invested in Bonds and Debentures AS
compared to those who have not. This may be due to less knowledge about it or the
time of re-demption.

d. Equities & Share Market

YES 45
NO 55
TOTAL 100

Equity & Share Market

YES
YES
NO
NO

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KARVY

By the chart we observe that the percentage of people investing in equity and share
market is not much but there is a going interest among people especially the
younger generation to invest so as to make quick bucks with the market boom.

e. PPF

YES 43
NO 57
TOTAL 100

PPF

43%
YES
NO
57%

Out of the total people asked 57% said they invest in PPF and 43% said they don’t,
but it has been observed that from the people who said they invest the major chunk
are people from service sector.

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KARVY

f. NSC

YES 45
NO 55
TOTAL 100

NSC

45%
YES
NO
55%

Out of all the people questioned 45% said YES and 55% said NO. People who have
said that YES a major percentage are either business man or working people who
want a fix rate of return and security.

g. Post Office Savings

YES 31
NO 69
TOTAL 100

Post Office Savings

31%

YES
NO

69%

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KARVY

Out of the total correspondent only 31% they invest in post office savings. This
could be due to falling interest rate and better return by other tools.

h. Real Estate

YES 42
NO 58
TOTAL 100

Real Estate

42%
YES
NO
58%

The correspondent who said YES are 42% and who said NO is 58% but this will
change as people are more comfortable in real estate and with falling interest rate
people try to find new avenue of investments.

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KARVY

i. Gold

YES 41
NO 59
TOTAL Gold
100

41%
YES
NO
59%

Out of the total correspondent questioned 41% say they prefer to invest in gold
while 59% say they don’t.

j. Others

YES 39
NO 61
TOTAL 100
OTHERS

39%
YES
NO
61%

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 KARVY

Of all the correspondents asked only 39% said they have other options to invest
other than the conventional options.

Q4. What percentage of your income do you invest?

Below 10% 30
10%-30% 57
30%-50% 10
Above 50% 3

About 60% of people said that they invest between 10%-60% of their total income
in some or other types of financial tools. A major chunk of people belonging to this
segment are from IT sector who are young, large disposable income and have a little
knowledge about investment and are willing to take risk.

percentage of income invested

60

50

40

30 Series1
20

10

0
Below 10% 10%-30% 30%-50% Above 50%

Q5. Are you aware about mutual funds?

YES 88

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KARVY

NO 12
TOTAL 100

Aw areness about m utual funds

12%

YES
NO

88%

Only 12% of correspondent said they don’t know any thing about mutual fund and
88% said they know about mutual funds but what we found that they have just a
primary or very negligible knowledge about mutual funds and not really aware of
the concept called MUTUAL FUND.

Q6. What is your perception about mutual funds?

SAFE 15%
RISKY 25%
OTHERS 60%
TOTAL 100%

Perception about mutual funds

60%

50%

40%
60%
30% Series1

20%
25%
10% 15%

0%
Safe Risky Others

The percentage of person who say that mutual fund is safe is 5%, an those who say
it is risky is 25% but a major percentage of corresponds opt as other which is about

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 KARVY

60%. These are people who say that mutual funds are high risk and high gain or
even people who have no opinion.
Q7. Have you ever invested in mutual fund?

YES 41
NO 59
TOTAL 100

investment in mutual funds

60
50
40
30
20
10
0
Yes No

Out of the total correspondents asked about 41% have said that they had invested in
mutual funds before while 59% said NO. Out of the total people who have said yes a
majority of them are young, having disposable income and willingness to take risk.
Q8. Do you know different type of mutual scheme present in the market?

YES 36
NO 64
TOTAL 100

Types of mutual funds

100%

80%

60%

40%

20%
Out
0% of total corresponds only 36% said that they know about various mutual
Yes No
schemes as this number is very small it explains that people still don’t know about

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KARVY

various schemes in the market. It also shows that even those who have bought
mutual funds are still ignorant about the different schemes.

Q9. How you choose a mutual fund?

BRAND NAME 35
HIGH NAV 26
HIGH RETURNS 15
ADVERTISING 12
OTHERS 12
TOTAL 100

Choosing of mutual fund

40
35
30
25
20
15
10
5
0
Brand Name High NAV High Returns Advertising Others

It has been observed that brand name does matter when people are choosing a
mutual fund as 35% said brand name. The next is NAV at about 26%. These two
factors play a major role during selection of mutual funds.

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KARVY

PROJECT FINDINGS
&
RECOMMENDATIONS

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KARVY

PROJECT FINDINGS:
• There is great opportunity for Mutual Fund companies as there is a is a rise in
number of people who want to invest in share market but don’t have time and
knowledge to do so, also these people want to take less risk .

• With booming market and falling interest rate of bank deposits, people see mutual
funds as an attractive financial tool which provide a high return rate at lower risk
as compared to equity market.

• Young people these days are particularly more interested in mutual funds because
they see mutual fund as safe bet. Also these people have large disposable incomes
and risk taking capability too.

• The bad part is people are still ignorant about mutual funds and different schemes
about mutual funds, hence it is very necessary to educate them about mutual funds

• Advertising can also play a major part as it has been seen that people buy mutual
fund looking at the brand name.

RECOMMENDATIONS:

• India is passing through a tremendous growth phase with an average growth rate
of 7-8% per annum. With this growth phase there is growth in each and every
sector, hence there is rush to by shares and equities. It is also a very good time for
mutual fund companies but it is advisable for them and their brokers that they
don’t just sell mutual funds but sell the right kind of scheme which is comfortable
to a person nature of taking risk and need,

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KARVY

• There is a general ignorance and questions about, what are mutual funds? What
are different schemes of mutual funds? How to invest in a mutual? And many
more. This thing should be handled by mutual fund companies and their brokers
to provide knowledge to their clients.

• It has been seen that there is a major increase in the percentage of young investors
who have large amount of disposable income with them and want to invest, these
type of prospective clients should be tapped at an early stage.

• Small towns, villages are still untapped and can also acts as an business area of
very huge potential.

• Now even co-operative society can invest up to 10% of their capital in mutual
funds which open the door to new and very important client base.

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KARVY

BIBLIOGRAPHY

 www.njindiainvest.com

 www.moneycontrol.com
 www.amfiindia.com

 www.karvy.com
 MUTUAL FUND
PRODUCT AND SERVICES---- TAXMAN
 AMFI COURSE BOOK

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KARVY

Questionnaire

1. Are you a regular investor?

a. Yes b. No

2. Do you invest using –

a. Scientific Tools b. By Intuition

3. What are your preferred investment priorities?

Name of Investment
Insurance
Bank
Bonds & Debentures
Equities & Share Market
PPF (Public Provident Fund)
NSC (National Saving Schemes)
Post Office Saving Schemes
Real Estate
Gold
Others

4. What percentage of your income do you invest?

a. Below 10%
b. 10% - 30%
c. 30% - 50%
d. Above 50%

5. Are you aware about Mutual Funds?

a. Yes b. No

6. What is your perception about Mutual Funds?

a. Safe
b. Risky
c. Others

7. Have you invested in some Mutual Funds?

a. Yes b. No

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8. Do you know different type of Mutual Fund scheme present in the market?
a. Yes b. No

9. How do you select and choose Mutual Funds?

a. Brand Name b. High NAV
c. High Dividends d. Advertisement
e. Others

Demographics
1. NAME: _____________________________________________

2. AGE: SEX: M / F

3. MARTIAL STATUS:

4. PROFESSION:

5. ANNUAL INCOME:
a. Less than Rs. 1, 00,000/-
b. 1, 00,000 - 1, 50,000/-
c. 1, 50,000 - 2, 50,000/-
d. 2, 50,000 - 5, 00,000/-
e. Above 5,00,000/-

6. Contact Number:

7. Email ID : ___________________________________________

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