Scope Of The Study:

Indian Stock market has undergone tremendous changes over the years. Investment in Mutual Funds has become a major alternative among Investors. The project has been carried out to have an overview of Mutual Fund Industry and to understand investors perception about Mutual Funds in the context of their trading preference, explore investors risk perception & find out their preference over Top Mutual funds.

Objective Of The Study:

To study the Mutual funds industry in detail To study the Investment procedure in Mutual funds To study in brief various Mutual funds promoted by different AMC To study the investors Preference regarding Investment in Mutual Funds

RESEARCH METHODOLOGY
The methodology used was data collection using Schedule. Secondary data was collected from Internet and Books. Primary Data was collected through survey among existing clients along with the other investors. The procedure adopted to select sample was simple random sampling The research design is analytical in nature. A questionnaire was prepared and distributed to Investors. The investors profile is based on the results of a questionnaire that the Investors completed. The Sample consists of 60 investors from various brokers premises. The target customers were Investors who are investing in mutual fund. The area of survey was restricted to people residing in chikamagalore.

SOURCE OF DATA COLLECTION Both Primary and Secondary data are required

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Primary data Is the first hand information collected directly from the respondents . The tool used here is questionnaire. Primary Data is collected through survey among existing clients along with the other investors Secondary data Is collected through internet , books I had prepared a questionnaire for collecting information about second part of the project.

Sample size: Sample size for the survey is 60. Breakup of the sample 20 Service Class 20 Business class 20 Professionals Age Group: Between 25 to 55 years of age Research Instrument: - Questionnaire Type of sampling: Stratified Random & Convenience sampling technique is used for collecting the primary data. The data is collected only from the respondents of Chikmagalore who have invested in Mutual Funds. Data Analysis Procedures The major focus is on the results of the questionnaire survey. (1) I will screen all the questionnaires in order to gain a first overview over the data gathered. (2) The analysis of the data generated during the study with the help of various statistical tools like bar charts & pie charts. (3) At the last I will draw conclusion regarding customers preferences and satisfaction about mutual funds.

Limitations:
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There were certain limitations faced during the study.

Some people were not willing to disclose the investment profile.

The biasness was being taken care of. The area of sample was decided after taking into consideration the major factors like Availability of investors. Approachability, Time available with investor for interaction, etc.

INDUSTRY PROFILE

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Investment in share markets are influenced by the analysis & reasoning which help in predicting the market to some extent. Over the past years a number of technical & theories for analysis have evolved, these combined with modern technology guides the investor. The big players in the market, like Foreign Institutional Investors, Mutual Funds, etc. have the expertise for various analytical tools & make use of them. The small investors are not in a position to benefit from the market the way Mutual Funds can do. Generally a small investors investments are based on market sentiments, inside information, through grapevine, tips & intuition. The small investors depend on brokers and brokerage house for his investments. They can invest through the Mutual Funds who are more experienced and expert in this field than a small investor himself.

In recent years a large number of players have entered into his market. The project has been carried out to have an overview of Mutual Fund Industry and to understand investors perception about Mutual Funds in the context of their trading preference, explore investors risk perception & find out their preference over Top Mutual.

Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage, now

spanning three centuries in its 133 years of existence. What is now popularly known as BSE was established as "The Native Share & Stock Brokers' Association" in 1875.

BSE is the first stock exchange in the country which obtained permanent recognition (in 1956) from the Government of India under the Securities Contracts (Regulation) Act 1956. BSE's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized. It migrated from the open outcry system to an online screen-based order driven trading system in 1995. Earlier an Association Of Persons (AOP), BSE is now a corporatised and demutualised entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualisation) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI). With demutualisation, BSE has two of world's best exchanges, Deutsche Brse and Singapore Exchange, as its strategic partners.

Over the past 133 years, BSE has facilitated the growth of the Indian corporate sector by providing it with an efficient access to resources. There is perhaps no major corporate in India which has not sourced BSE's services in raising resources from the capital market.
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Today, BSE is the world's number 1 exchange in terms of the number of listed companies and the world's 5th in transaction numbers. The market capitalization as on December 31, 2007 stood at USD 1.79 trillion . An investor can choose from more than 4,700 listed companies, which for easy reference, are classified into A, B, S, T and Z groups.

The BSE Index, SENSEX, is India's first stock market index that enjoys an iconic stature , and is tracked worldwide. It is an index of 30 stocks representing 12 major sectors. The SENSEX is constructed on a 'free-float' methodology, and is sensitive to market sentiments and market realities. Apart from the SENSEX, BSE offers 21 indices, including 12 sectoral indices. BSE has entered into an index cooperation agreement with Deutsche Brse. This agreement has made SENSEX and other BSE indices available to investors in Europe and America. Moreover, Barclays Global Investors (BGI), the global leader in ETFs through its iShares brand, has created the 'iShares BSE SENSEX India Tracker' which tracks the SENSEX. The ETF enables investors in Hong Kong to take an exposure to the Indian equity market.

BSE has tied up with U.S. Futures Exchange (USFE) for U.S. dollar-denominated futures trading of SENSEX in the U.S. The tie-up enables eligible U.S. investors to directly participate in India's equity markets for the first time, without requiring American Depository Receipt (ADR) authorization. The first Exchange Traded Fund (ETF) on SENSEX, called "SPIcE" is listed on BSE. It brings to the investors a trading tool that can be easily used for the purposes of investment, trading, hedging and arbitrage. SPIcE allows small investors to take a long-term view of the market.

BSE provides an efficient and transparent market for trading in equity, debt instruments and derivatives. It has a nation-wide reach with a presence in more than 450 cities and towns of India. BSE has always been at par with the international standards. The systems and processes are designed to safeguard market integrity and enhance transparency in operations. BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certification. It is also the first exchange in the country and second in the world to receive Information Security
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Management System Standard BS 7799-2-2002 certification for its BSE On-line Trading System (BOLT). BSE continues to innovate. In recent times, it has become the first national level stock exchange to launch its website in Gujarati and Hindi to reach out to a larger number of investors. It has successfully launched a reporting platform for corporate bonds in India christened the ICDM or Indian Corporate Debt Market and a unique ticker-***-screen aptly named 'BSE Broadcast' which enables information dissemination to the common man on the street.

In 2006, BSE launched the Directors Database and ICERS (Indian Corporate Electronic Reporting System) to facilitate information flow and increase transparency in the Indian capital market. While the Directors Database provides a single-point access to information on the boards of directors of listed companies, the ICERS facilitates the corporates in sharing with BSE their corporate announcements.

BSE also has a wide range of services to empower investors and facilitate smooth transactions: Investor Services: The Department of Investor Services redresses grievances of investors. BSE was the first exchange in the country to provide an amount of Rs.1 million towards the investor protection fund; it is an amount higher than that of any exchange in the country. BSE launched a nationwide investor awareness programme- 'Safe Investing in the Stock Market' under which 264 programmes were held in more than 200 cities.

The BSE On-line Trading (BOLT): BSE On-line Trading (BOLT) facilitates on-line screen based trading in securities. BOLT is currently operating in 25,000 Trader Workstations located across over 450 cities in India.

BSEWEBX.com: In February 2001, BSE introduced the world's first centralized exchange-based
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Internet trading system, BSEWEBX.com. This initiative enables investors anywhere in the world to trade on the BSE platform.

Surveillance: BSE's On-Line Surveillance System (BOSS) monitors on a real-time basis the price movements, volume positions and members' positions and real-time measurement of default risk, market reconstruction and generation of cross market alerts.

BSE Training Institute: BTI imparts capital market training and certification, in collaboration with reputed management institutes and universities. It offers over 40 courses on various aspects of the capital market and financial sector. More than 20,000 people have attended the BTI programs.

Awards
The World Council of Corporate Governance has awarded the Golden Peacock Global CSR Award for BSE's initiatives in Corporate Social Responsibility (CSR). The Annual Reports and Accounts of BSE for the year ended March 31, 2006 and March 31 2007 have been awarded the ICAI awards for excellence in financial reporting. The Human Resource Management at BSE has won the Asia - Pacific HRM awards for its efforts in employer branding through talent management at work, health management at work and excellence in HR through technology Drawing from its rich past and its equally robust performance in the recent times, BSE will continue to remain an icon in the Indian capital market.

Financial Services Industry

Financial services organizations are striving to achieve increasingly ambitious profit and growth targets against a background of heightened risk, regulation and market pressures. As of

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2004, the financial services industry represented 20% of the market capitalization of the S&P 500 in the United States. Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises.

Customer needs and expectations are evolving in the face of increasing personal wealth, more private funding of pensions and healthcare and the desire for ever more accessible and personalized financial products and services. In turn, intense competition has squeezed industry margins and forced organizations to cut costs while still seeking to enhance the quality of client choice and service. The battle for talent is also heating up as companies seek to enhance innovation, customer loyalty and investment returns The corollary of this market evolution is increasing risk as products become more complex, organisations more diffuse and the business environment ever more uncertain. Regulation is also tightening in the wake of public and government pressure for improved governance, transparency and accountability. In this environment, the winners will be companies that can turn the challenges into opportunities to build stronger and more enduring customer relationships; sharpen process efficiency; unlock talent and creativity; use improved risk management processes to deliver more sustainable returns; and use new regulatory demands as a catalyst for strengthening the business and enhancing market confidence.

Organizations will also need to identify and concentrate on core competencies where they can exert maximum competitive advantage, be this a particular product, service, process or geographical territory. For some this will require a strategic re-orientation towards becoming a specialist niche provider. Even larger groups will need to differentiate their offering and by implication the associated brand
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In economics, a financial market is a mechanism that allows people to easily buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices that reflect the efficient market hypothesis. Financial markets have evolved significantly over several hundred years and are undergoing constant innovation to improve liquidity. Both general markets (where many commodities are traded) and specialized markets (where only one commodity is traded) exist. Markets work by placing many interested buyers and sellers in one "place", thus making it easier for them to find each other. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non-market economy such as a gift economy In finance, financial markets facilitate-

The raising of capital (in the capital markets); The transfer of risk (in the derivatives markets); International trade (in the currency markets)

--and are used to match those who want capital to those who have it. Typically a borrower issues a receipt to the lender promising to pay back the capital. These receipts are securities which may be freely bought or sold. In return for lending money to the borrower, the lender will expect some compensation in the form of interest or dividends.

Definition of financial market

The term financial markets can be a cause of much confusion. Financial markets could mean: 1. Organizations that facilitate the trade in financial securities. i.e. Stock Exchanges facilitate the trade in stocks, bonds and warrants.

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2. The coming together of buyers and sellers to trade financial securities. i.e. stocks and shares are traded between buyers and sellers in a number of ways including: the use of stock exchanges; directly between buyers and sellers etc.

Types of Financial Markets The financial markets can be divided into different subtypes: Capital Market which is the market for securities, where companies and governments can raise long term funds. The capital market includes the stock market and the bond market. Financial regulators, such as the U.S. Securities and Exchange Commission, oversee the capital markets in their designated countries to ensure that investors are protected against fraud. The capital markets consist of the primary market, where new issues are distributed to investors, and the secondary market, where existing securities are traded.

CAPITAL MARKETS WHICH CONSIST OF: Stock Markets :- which provide financing through the issuance of shares or common stock, and enable the subsequent trading thereof.

Bond Markets :- which provide financing through the issuance of Bonds, and enable the subsequent trading thereof.

Commodity Markets:- which facilitate the trading of commodities.

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 Money Markets :- which provide short term debt financing and investment.

Derivatives Markets:- which provide instruments for the management of financial risk. o

Futures Markets, which provide standardized forward contracts for trading products at some future date; see also forward market.

Insurance Markets :- which facilitate the redistribution of various risks.

Foreign Exchange Markets :- which facilitate the trading of foreign exchange.

The capital markets consist of primary markets and secondary markets. Newly formed (issued) securities are bought or sold in primary markets. Secondary markets allow investors to sell securities that they hold or buy existing securities. Raising Capital To understand financial markets, let us look at what they are used for, i.e. what is their purpose? Without financial markets, borrowers would have difficulty finding lenders themselves. Intermediaries such as banks help in this process. Banks take deposits from those who have money to save. They can then lend money from this pool of deposited money to those who seek to borrow. Banks popularly lend money in the form of loans and mortgages. More complex transactions than a simple bank deposit require markets where lenders and their agents can meet borrowers and their agents, and where existing borrowing or lending commitments can be sold on to other parties. A good example of a financial market is a stock exchange. A company can raise money by selling shares to investors and its existing shares can be bought or sold. The following table illustrates where financial markets fit in the relationship between lenders and borrowers:
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Relationship between lenders and borrowers Lenders Financial Intermediaries Financial Markets Borrowers Individuals Individuals Banks Insurance Companies Companies Pension Funds,Mutual Funds Interbank Stock Exchange Companies Money Market, Bond Market Central Government Foreign Exchange Municipalities Public Corporations Analysis Of Financial Markets Much effort has gone into the study of financial markets and how prices vary with time. Charles Dow, one of the founders of Dow Jones & Company and The Wall Street Journal, enunciated a set of ideas on the subject which are now called Dow Theory. This is the basis of the so-called technical analysis method of attempting to predict future changes. One of the tenets of "technical analysis" is that market trends give an indication of the future, at least in the short term. The claims of the technical analysts are disputed by many academics, who claim that the evidence points rather to the random walk hypothesis, which states that the next change is not correlated to the last change. The scale of changes in price over some unit of time is called the volatility. It was discovered by Benot Mandelbrot that changes in prices do not follow a Gaussian distribution, but are rather modeled better by Levy stable distributions. The scale of change, or volatility, depends on the length of the time unit to a power a bit more than 1/2. Large changes up or down are more likely than what one would calculate using a Gaussian distribution with an estimated standard deviation.

Company profile

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Breif history
Karvy was started by a group of five chartered accountants in 1979 at Hydrabad. At initial stage it was very small in size. It was started with a capital of Rs. 1,50,000. In starting it was only offering auditing and taxation services. Later, on The partners decided to offer, other than the audit services, value added services like Financial Product Distribution, Investment Advisory Services, Demat Services, Corporate Finance, Insurance etc to their clients. The first firm in the group, Karvy Consultants Limited was incorporated on 23rd July, 1983. In a very short period, it became the largest Registrar and Transfer Agent in India. This business was spun off to form a separate joint venture with Computershare of Australia, in 2005. Karvys foray into stock broking began with marketing IPOs, in 1993. Within a few years, Karvy began topping the IPO procurement league tables and it has consistently maintained its position among the top 5. Karvy was among the first few members of National Stock Exchange, in 1994 and became a member of The Stock Exchange, Mumbai in 2001. In January 1998, Karvy became first Depository Participant in Andhra Pradesh. Today Karvy is among the top 5 Depositary Participant in India. While the registry business is a 50:50 Joint Venture with Computershare of Australia, we have equity participation by ICICI Ventures Limited and Barings Asia Limited, in Karvy Stock Broking Limited. For a snapshot of our organization structure, please click here. Karvy has always believed in adding value to services it offers to clients. A top-notch research team based in Mumbai and Hyderabad supports its employees to advise clients on their investment needs. With the information overload today, Karvys team of analysts help investors make the right calls, be it equities, mf, insurance.

On a typical working day Karvy: Has more than 25,000 investors visiting our 575 offices. Publishes / broadcasts at least 50 buy / sell calls Attends to 10,000+ telephone calls Mails 25,000 envelopes, containing Annual Reports, dividend cheques / advises, allotment / refund advises.
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 Executes 150,000+ trades on NSE / BSE Executes 50,000 debit / credit in the depositary accounts Advises 3,000+ clients on the investments in mutual funds KARVY Stock Broking Limited is a member of: National Stock Exchange (NSE) Bombay Stock Exchange (BSE) Hyderabad Stock Exchange (HSE)

Structure of KARVY
Karvy ranks among the top player in almost all the fields it operates. Karvy Computershare Limited is Indias largest Registrar and Transfer Agent with a client base of nearly 500 blue chip corporate, managing over 2 crore accounts. Karvy Stock Brokers Limited, member of National Stock Exchange of India and the Bombay Stock Exchange, ranks among the top 5 stock brokers in India. With over 6,00,000 active accounts, it ranks among the top 5 Depositary Participant in India, registered with NSDL and CDSL. Karvy Comtrade, Member of NCDEX and MCX ranks among the top 3 commodity brokers in the country. Karvy Insurance Brokers is registered as a Broker with IRDA and ranks among the top 5 insurance agent in the country. Registered with AMFI as a corporate Agent, Karvy is also among the top Mutual Fund mobilizer with over Rs. 5,000 crores under management. Karvy Realty Services, which started in 2006, has quickly established itself as a broker who adds value, in the realty sector. Karvy Global offers niche off shoring services to clients in the US. Karvy has 575 offices over 375 locations across India and overseas at Dubai and New York. Over 9,000 highly qualified people staff Karvy. The company service over 16 million individual investors, 180 corporate and handle corporate disbursements that exceed Rs.2500 Crores.

Mission Statement of Karvy

An organization exists to accomplish something or achieve something. The mission statement indicates what an organization wants to achieve. The mission statement may be changed periodically to take advantage of new opportunities or respond to new market conditions. Karvys mission statement is To Bring Industry, Finance and People together.
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Karvy is work as intermediary between industry and people. Karvy work as investment advisor and helps people to invest their money same way Karvy helps industry in achieving finance from people by issuing shares, debentures, bonds, mutual funds, fixed deposits etc. Companys mission statement is clear and thoughtful which guide geographically dispersed employees to work independently yet collectively towards achieving the organizations goals.

Vision of Karvy
Companys vision is crystal clear and mind frame very directed. To be pioneering financial services company. And continue to grow at a healthy pace, year after year, decade after decade. Companys foray into IT-enabled services and internet business has provided an opportunity to explore new frontiers and business solutions. To build a corporate that sets benchmarks for others to follow.

Karvy Values
Integrity Responsibility Reliability Unity Understanding Excellence Confidentiality

Karvy Group Companies

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
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channels of progress. Having emerged as a leader in the registry business, the first of the businesses that we ventured into, we have now transferred this business into a joint venture with Computershare Limited of Australia, the worlds largest registrar. With the advent of depositories in the Indian capital market and the relationships that we have created in the registry business, we believe that we were best positioned to venture into this activity as a Depository Participant. We were one of the early entrants registered as Depository Participant with NSDL (National Securities Depository Limited), the first Depository in the country and then with CDSL (Central Depository Services Limited). Today, we service over 6 lakhs customer accounts in this business spread across over 250 cities/towns in India and are ranked amongst the largest Depository Participants in the country. With a growing secondary market presence, we have transferred this business to Karvy Stock Broking Limited (KSBL), our associate and a member of NSE, BSE and HSE.

Member - Natio nal Stock Exchange (NSE), The Bombay Stock Exchange (BSE), and The Hyderabad Stock Exchange (HSE). Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely towards attaining diverse goals of the customer through varied services. Creating a plethora of opportunities for the customer by opening up investment vistas backed by research-based advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping the customer create waves in his portfolio and empowering the investor completely is the ultimate goal. It is an undisputed fact that the stock market is unpredictable and yet enjoys a high success rate as a wealth management and wealth accumulation option. The difference between unpredictability and a safety anchor in the market is provided by in-depth knowledge of market functioning and changing trends.

The paradigm shift from pure selling to knowledge based selling drives the business today. With our wide portfolio offerings, we occupy all segments in the retail financial services industry. A 1600 team of highly qualified and dedicated professionals drawn from the best of academic and professional backgrounds are committed to maintaining high levels of client service delivery. This has propelled us to a position among the top distributors for equity and debt issues
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with an estimated market share of 15% in terms of applications mobilized, besides being established as the leading procurer in all public issues. To further tap the immense growth potential in the capital markets we enhanced the scope of our retail brand, Karvy the Finapolis , thereby providing planning and advisory services to the mass affluent. Here we understand the customer needs and lifestyle in the context of present earnings and provide adequate advisory services that will necessarily help in creating wealth. Judicious planning that is customized to meet the future needs of the customer deliver a service that is exemplary. The market-savvy and the ignorant investors, both find this service very satisfactory. The edge that we have over competition is our portfolio of offerings and our professional expertise. The investment planning for each customer is done with an unbiased attitude so that the service is truly customized.

Recognized as a leading merchant banker in the country, we are registered with SEBI as a Category I merchant banker. This reputation was built by capitalizing on opportunities in corporate consolidations, mergers and acquisitions and corporate restructuring, which have earned us the reputation of a merchant banker. Raising resources for corporate or Government Undertaking successfully over the past two decades have given us the confidence to renew our focus in this sector. Our quality professional team and our work-oriented dedication have propelled us to offer valueadded corporate financial services and act as a professional navigator for long term growth of our clients, who include leading corporates, State Governments, foreign institutional investors, public and private sector companies and banks, in Indian and global market We have also emerged as a trailblazer in the arena of relationships, both at the customer and trade levels because of our unshakable integrity, seamless service and innovative solutions that are tuned to meet varied needs. Our team of committed industry specialists, having extensive experience in capital markets, further nurtures this relationship. Our financial advice and assistance in restructuring, divestitures, acquisitions, de-mergers, spinoffs, joint ventures, privatization and takeover defense mechanisms have elevated our relationship with the client to one based on unshakable trust and confidence.

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We have traversed wide spaces to tie up with the worlds largest transfer agent, the leading Australian company, Computer share Limited. The company that services more than 75 million shareholders across 7000 corporate clients and makes its presence felt in over 12 countries across 5 continents has entered into a 50-50 joint venture with us. With our management team completely transferred to this new entity, we will aim to enrich the financial services industry than before. The future holds new arenas of client servicing and contemporary and relevant technologies as we are geared to deliver better value and foster bigger investments in the business. The worldwide network of Computer share will hold us in good stead as we expect to adopt international standards in addition to leveraging the best of technologies from around the world. Excellence has to be the order of the day when two companies with such similar ideologies of growth, vision and competence, get together.

The specialist Business Process Outsourcing unit of the Karvy Group. The legacy of expertise and experience in financial services of the Karvy Group serves us well as we enter the global arena with the confidence of being able to deliver and deliver well. Here we offer several delivery models on the understanding that business needs are unique and therefore only a customized service could possibly fit the bill. Our service matrix has permutations and combinations that create several options to choose from. Be it in re-engineering and managing processes or delivering new efficiencies, our service meets up to the most stringent of international standards. Our outsourcing models are designed for the global customer and are backed by sound corporate and operations philosophies, and domain expertise. Providing productivity improvements, operational cost control, cost savings, improved accountability and a whole gamut of other advantages.We operate in the core market segments that have emerging requirements for specialized services. Our wide vertical market coverage includes Banking, Financial and Insurance Services (BFIS), Retail and Merchandising, Leisure and Entertainment, Energy and Utility and Healthcare

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At Karvy Commodities, we are focused on taking commodities trading to new dimensions of reliability and profitability. We have made commodities trading, an essentially age-old practice, into a sophisticated and scientific investment option. Here we enable trade in all goods and products of agricultural and mineral origin that include lucrative commodities like gold and silver and popular items like oil, pulses and cotton through a well-systematized trading platform. Our technological and infrastructural strengths and especially our street-smart skills make us an ideal broker. Our service matrix is holistic with a gamut of advantages, the first and foremost being our legacy of human resources, technology and infrastructure that comes from being part of the Karvy Group.

At Karvy Insurance Broking Limited., we provide both life and non-life insurance products to retail individuals, high net-worth clients and corporates. With the opening up of the insurance sector and with a large number of private players in the business, we are in a position to provide tailor made policies for different segments of customers. In our journey to emerge as a personal finance advisor, we will be better positioned to leverage our relationships with the product providers and place the requirements of our customers appropriately with the product providers. With Indian markets seeing a sea change, both in terms of investment pattern and attitude of investors, insurance is no more seen as only a tax saving product but also as an investment product. By setting up a separate entity, we would be positioned to provide the best of the products available in this business to our customers.

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KARVY Realty & Services (India) Limited (KRSIL) is engaged in the business of real estate and property services offering value added property services and offers individuals and establishments a myriad of options across investments, financing and advisory services in the realty sector. KARVY Realty & Services (India) Limited Take a Realty Byte !!! Promoted by the KARVY Group of companies, Indias largest integrated financial services company. KARVY Realty & Services India Limited carries forward its legacy of trust and excellence in investor and customer services delivered with a passion for services and the highest level of quality that align with global standards. KARVY Realty & Services (India) Limited welcomes you to take a reality check on realty options that you can be rest assured of and of course profit from.

PERFORMANCE OF KARVY

WHERE KARVY STAND IN THE MARKET? KARVY is a legendary name in financial services, Karvys credit is defined by its mission to succeed, passion for professionalism, excellent work ethics and customer centric values. Today KARVY is well known as a premier financial services enterprise, offering a broad spectrum of customized services to its clients, both corporate and retail. Services that KARVY constantly upgrade and improve are because of companys skill in leveraging technology. Being one of the most techno-savvy organizations around helps company to deliver even more cost effective financial solutions in the shortest possible time. What bears ample testimony to Karvys success is the faith reposed in company by valued investors and customers, all across the country. Indeed, with Karvys wide network touching
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every corner of the country, even the most remote investor can easily access Karvys services and benefit from companys expert advice. Some key points about KARVY :

Every 50th Indian is serviced by karvy. Every 20th trade in stock is done by Karvy. Indians no.1 registrar and transfer agent. Every 6th investor in India invest through karvy. Every 10th Demat account is held at Karvy.

KARVYS PRODUCT & SERVICES

SERVICES OF KARVY Stock broking Demat services Investment product distribution Investment advisory services Corporate finance & Merchant banking Insurance Broking services Mutual fund services IT enabled services Registrars & Transfer agents Loans Reality services Portfolio management services BPO & KPO services Corporate advisor Currency derivatives Bonds and Deposits Depository services Commodities Investment Banking Advisory service

PRODUCT OF KARVY
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Now the Karvy groups brings this expertise to investors, with KARVY IZONE + . It is a powerful Expert Advisory based trading system for those who are relatively new to online investing. A unique integrated account, which integrates your securities, online stock-broking, and Demat accounts. A comprehensive trading service, which allows you to invest in equities, mutual funds, SIP, commodity and derivatives. KARVY I -Zone+ trading platform allows you the flexibility of trading on any internet capable system, with access to both the NSE and BSE. ADVANTAGE---1. Free online Stock-Broking and attractive Margin funding option available 2. Free Demat account 3. Free online Commodities Broking account 4. Option to buy unlimited mutual funds or SIP without any transaction charges 5. Loan against securities 6. Regular Portfolio Statement for better planning of future investment 7. Free financial advice to better distribute your assets between Mutual Fund, Equity, Debt, Commodity and Insurance.

Competitors of KARVY :-

KOTAK SECURITIES: Kotak securities ltd is India leading stock broking house with a market share of close to 9% as on 31 march 2007. kotak securities ltd has been the largest in IPO distribution.
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The company has a full fledged research division involved in macro economic studies sect oral research and company specific equity research combined with a strong and well networked sales force which helps deliver current and up to date market information and news Kotak securities ltd is also a depository participant with national securities depository limited and central depository service limited .providing dual benefits services where in the investor can use the brokerage services of the company for executing the transactions and the depository service for settling them. Kotak securities have 813 outlets servicing more than 315000 customers and a coverage of 277 cities. Kotak securities com the online division of kotak securities limited offers internet broking services and also online IPO and mutual fund investment A Kotak security limited manages assets around 2300 crores of assets under management. The portfolio management service provides top class service catering to the high end of the market. Portfolio management from kotak securities comes as an answer to those who would like to grow from exponentially on the crest of the stock market, with the backing of an expert.

Sharekhan, the retail broking arm of SSKI group and one of the largest stock broking house in the country has won the prestigious awaaz consumer vote awards 2005 for the most preferred stock broking brand in India, in the investment advisors category Share khan equity related services include trade execution on BSE,NSE derivatives commodities depository services online trading and investment advice ,.sharekhan online trading and investment site www.sharekhan.com was launched in 2000 . Sharekhan Bag round network includes over 250 centers across 123 cities in India and having around 120000 customers and equal number of demat customers.

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Sharekhan won the award by vote of customer around the country, as part of India largest consumer study cover 7000 respondents 21 product and service across 21 major cities. the study initiated by awaaz India first dedicated consumer channel and member of the world wide CNBC network and ac Nielsen org marg was aimed at understanding the brand preference of the consumer and to decipher what are the most important loyalty criteria for the consumer in each vertical In order to select the award recipient spontaneous responses rather than prompted responses were garnered with an intention to glean unbiased preferences. The reason behind the preferences for brands were unveiled by examines the following: Tangible features of product /service Softer, intangible features like imagery, equity driving preference Tactical measures such as promotional /pricing schemes

The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites http://www.indiainfoline.com/and http://www.5paisa.com/ The company has a network of 758 business locations (branches and sub-brokers) spread across 346 cities and towns. It has more than 800,000 customers India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients trading in the equities market. It has recently launched its Investment banking and Institutional Broking business.

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Religare Enterprises Limited (REL), is one of the leading integrated financial services groups of India. RELs businesses are broadly clubbed across three key verticals, the Retail, Institutional and Wealth spectrums, catering to a diverse and wide base of clients. REL offers a multitude of investment options and a diverse bouquet of financial services and has a pan India reach in more than 1550 locations across more than 460 cities and towns. As part of its recent initiatives, the group has also started expanding globally and has acquired Londons oldest brokerage & investment firm, Hichens, Harrison & Co. plc. Following this acquisition Religare now proposes to operate out of 10 countries. With a view to expand, diversify and introduce offerings benchmarked against global best practices, Religare has entered into joint ventures with the global major- Aegon for its Asset Management and Life Insurance businesses in India. Religares wealth management subsidiary is now rechristened as Religare Macquarie Wealth Management Limited, following a joint venture with the Australia based financial services major, Macquarie Bank. Religare has also partnered with Vistaar Entertainment to launch Indias first Film Fund. The vision is to build Religare as a globally trusted brand in the financial services domain and present it as the Investment Gateway of India. All employees of the group guided by an experienced and professional management team are committed to providing financial care, backed by the core values of diligence and transparency.

Indiabulls is Indias leading Financial Services and Real Estate company having over 640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance. With around 4000 Relationship Managers, Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls through its group companies has entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars. Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange and Luxembourg Stock Exchange. The market capitalization of Indiabulls is around
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USD 6,300 million (31st December, 2007). Consolidated net worth of the group is around USD 905 million (31st December, 2007). Indiabulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital. Business of the company has grown in leaps and bounds since its inception. Revenue of the company grew at a CAGR of 159% from FY03 to FY07. During the same period, profits of the company grew at a CAGR of 184%. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC, a respected US based investment firm. Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties in Mumbai and Delhi.

The Angel Group of Companies was brought to life by Mr. Dinesh Thakkar. He ventured into stock trading with an intention to raise capital for his own independent enterprise. However, he recognised the opportunity offered by the stock market to serve individual investors. Thus Indias first retail-focused stock-broking house was established in 1987. Under his leadership, Angel became the first broking house to embrace new technology for faster, more effective and affordable services to retail investors. Mr. Thakkar is valued for his understanding of the economy and the stock-market. The print and electronic media often seek his views on the market trend as well as investment strategies.

SWOT ANALYSIS of Karvy

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Strength : A well-known name in

Weakness : Financial No access to rural market. No direct link between investors & the AMC.

Companies. Wide Experience in this field. Dedicated Employees. Tie up with many financial institutions. Ever growing distribution network. Good Infrastructure. Experienced Fund Managers. Easy access to the branch.

Opportunity :

Threat : Highly volatile and uncertain market conditions. Large number of financial giants present in this field.

Positive outlook of people towards mutual funds.

Untapped market.

Mutual Funds
Structure of the Indian Mutual Fund industry
The largest categories of Mutual Funds are the ones floated by the private sector and by Foreign Asset Management Companies. The largest of these are Prudential ICICI AMC and Birla Sun Life AMC. The aggregate corpus of assets managed by this category of AMCs is in excess of Rs.350 bn. Earlier the Indian Mutual Fund industry was dominated by the Unit Trust of India which has a total corpus of Rs.700 bn 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 Rs.200 bn. UTI was floated by
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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 largest categories of mutual funds are the ones floated by nationalized banks. Can bank 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 the General Insurance Corporation and Jeevan Bima Sahayog AMC floated by the LIC are some of the other prominent ones. The aggregate corpus of funds managed by this category of AMCs is about Rs.200 bn.

ABOUT MUTUAL FUNDS

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 is 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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Saving s Unit s

AMC Trus t Return s Investment s

Unit holders

Registrar

SEBI

Trust Custodian AMC

The structure of Mutual Funds in India is governed by SEBI (Mutual Fund) Regulations, 1996. It is mandatory to have a three tier structure of Sponsor Trustee Asset Management Company. The trust is established by a Sponsor or more than one sponsor who is like a promoter of a company. He appoints the Trustees who are responsible to the investors of the fund. The Trustees of the mutual fund hold its property for the benefit of the unit holders. Asset Management Company (AMC) approved by SEBI is the business face of the mutual fund as it manages all the affairs of the fund by making investments in various types of securities. Custodian, who is registered with SEBI, holds the securities of various funds in its custody. schemes of the

WHY MUTUAL FUNDS?

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An investor normally prioritizes his investment needs before undertaking an investment. So different goals will be allocated different proportions of the total disposable amount. Investments for specific goals normally find their way into the debt market as risk reduction is of prime importance. This is the area for the risk-averse investors and here, mutual funds are generally the best option. The reasons are not difficult to see. One can avail of the benefits of better returns with added benefits of anytime liquidity by investing in open-ended debt funds at lower risk. Many people have burnt their fingers by investing in fixed deposits of companies who were assuring high returns but have gone bust in course of time leading to distraught investors as well as pending cases in the Company Law Board. This risk of default by any company that one has chosen to invest in, can be minimized by investing in mutual funds as the fund managers analyze the companies financials more minutely than an individual can do as they have the expertise to do so. They can manage the maturity of their portfolio by investing in instruments of varied maturity profiles. Since there is no penalty on pre-mature withdrawal, as in the cases of fixed deposits, debt funds provide enough liquidity. Moreover, mutual funds are better placed to absorb the fluctuations in the prices of the securities as a result of interest rate variation and one can benefits from any such price movement. Apart from liquidity, these funds have also provided very good post-tax returns on year to year basis. Even historically, we find that some of the debt funds have generated superior returns at relatively low level of risks. On an average debt funds have posted returns over 10 percent over one-year horizon. The best performing funds have given returns of around 14 percent in the last one-year period. In nutshell we can say that these funds have delivered more than what one expects of debt avenues such as post office schemes or bank fixed deposits. Though they are charged with a dividend distribution tax on dividend payout at 10 percent (plus a surcharge of 10 percent), the net income received is still tax free in the hands of investor and is generally much more than all other avenues, on a post tax basis. Moving up in the risk spectrum, we have people who would like to take some risk and invest in equity funds/capital market. However, since their appetite for risk is also limited, they would rather have some exposure to debt as well. For these investors, balanced funds provide an easy route of investment. Armed with the expertise of investment techniques, they can invest in equity as well as good quality debt thereby reducing risks and providing the investor with better returns than he could otherwise manage. Since they can reshuffle their portfolio as per market conditions, they are likely to generate moderate returns even in pessimistic market conditions. This risk of default by any company that one has chosen to invest in, can be minimized by investing in mutual funds as the fund managers analyze the companies financials more minutely than an individual can do as they have the expertise to do so. They can manage the maturity of
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their portfolio by investing in instruments of varied maturity profiles. Since there is no penalty on pre-mature withdrawal, as in the cases of fixed deposits, debt funds provide enough liquidity. Moreover, mutual funds are better placed to absorb the fluctuations in the prices of the securities as a result of interest rate variation and one can benefits from any such price movement. Next come the risk takers. Risk takers by their very nature, would not be averse to investing in high-risk avenues. Capital markets find their fancy more often than not, because they have historically generated better returns than any other avenue, provided, the money was judiciously invested. Though the risk associated is generally on the higher side of the spectrum, the returnpotential compensates for the risk attached.

Capital markets interest people, albeit not all for there are several problems associated. First issue is that of expertise. While investing directly into capital market one has to be analytical enough to judge the valuation of the stock and understand the complex undertones of the stock. One needs to judge the right valuation for exiting the stock too. It is very difficult for a small investor to keep track of the movements of the market. Entrusting the job to experts, who watch the trends of the market and analyze the valuations of the stocks will solve this problem for an investor. Mutual funds specialize in identification of stocks through dedicated experts in the field and this enables them to pick stocks at the right moment. Sector funds provide an edge and generate good returns if the particular sector is doing well. Next problem is that of funds/money. A single person cant invest in multiple high-priced stocks for the sole reason that his pockets are not likely to be deep enough. This limits him from diversifying his portfolio as well as benefiting from multiple investments. Here again, investing through MF route enables an investor to invest in many good stocks and reap benefits even through a small investment. This not only diversifies the portfolio and helps in generating returns from a number of sectors but reduces the risk as well. Though identification of the right fund might not be an easy task, availability of good investment consultants and counselors will help investors take informed decision.

How are the Mutual Funds Structured?

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The Mutual Funds are structured in two forms: Company form and Trust form.

Company Form: These forms of mutual funds are more popular in US.

Trust Form: In India, mutual funds are organized as Trusts. The Trust is either managed by a Board of Trustees or by a Trustee Company. There must be at least 4 members in the Board of Trustees and at least 2/3 of the members of the board must be independent. Trustee of one mutual fund cannot be a trustee of another mutual fund.

Unit Trusts Constituents: A Mutual Fund is set up in the form of a Trust which has the following constituents:1. 2. 3. 4. Fund Sponsor Mutual Fund as Trust Asset Management Company Other Fund Constituents 4.1. Custodian and Depositors 4.2. Brokers 4.3. Transfer Agent 4.4. Distributors

FUND SPONSOR
What a promoter is to a company, a sponsor is to a mutual fund. The sponsor initiates the idea to set up a mutual fund. It could be a financial services company, a bank or a financial institution. It could be Indian or foreign. It could do it alone or through a joint venture. In order to run a mutual fund in India, the sponsor has to obtain a license from SEBI. For this, it has to satisfy certain conditions, such as on capital and profits, track record (at least five years in financial services), default-free dealings and a general reputation for fairness. The sponsor must have been profit making in at least 3 years of the above 5 years. The Sponsor appoints the Trustees, Custodian and the AMC with the prior approval of SEBI and in accordance with SEBI Regulations.

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Like the company promoter, the sponsor takes big-picture decisions related to the mutual fund, leaving money management and other such nitty-gritty to the other constituents, whom it appoints. The sponsor should inspire confidence in you as a money manager and, preferably, be profitable. Financial muscle, so long as it is complemented by good fund management, helps, as money is then not an impediment for the mutual fund- it can hire the best talent, invest in technology and continuously offer high service standards to the investors.

In the days of assured return schemes, sponsors also had to fulfill return promises made to the unit holders. This sometimes meant meeting shortfalls from their own pockets, as the government did for UTI. Now that assured return schemes are passed, such bailouts wont be required. All things considered, choose sponsors who are good money managers, who have a reputation for fair business practices and who have deep pockets.

TRUST
The Mutual Fund is constituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908. The Trust appoints the Trustees who are responsible to the investors of the fund.

TRUSTEES
Trustees are like internal regulators in a mutual fund, and their job is to protect the interests of the unit holders. Trustees are appointed by the sponsors, and can be either individuals or corporate bodies. In order to ensure they are impartial and fair, SEBI rules mandate that at least two-thirds of the trustees be independent, i.e., not have any association with the sponsor. Trustees appoint the AMC, which subsequently, seeks their approval for the work it does, and reports periodically to them on how the business being run. Trustees float and market schemes, and secure necessary approvals. They check if the AMCs investments are within defined limits and whether the funds assets are protected. Trustees can be held accountable for financial irregularities in the mutual fund.

Rights of the Trustees:

Trustees appoint the AMC in consultation with the sponsor and according to the SEBI Regulations. All Mutual Fund Schemes floated by the AMC have to be approved by the Trustees.
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 Trustees can seek information from the AMC regarding the operations and compliance of the mutual fund. Trustees can seek remedial actions from AMC, and in cases can dismiss the AMC.

Trustees review and ensure that the net worth of the AMC is according to the stipulated norms, every quarter.

Obligations of the Trustees:

Trustees must ensure that the transactions of the mutual fund are in accordance with the trust deed. Trustees must ensure that the AMC has systems and procedures in place. Trustees must ensure due diligence on the part of AMC in the appointment of constituents and business associates. Trustees must furnish to the SEBI, on half yearly basis a report on the activities of the AMC. Trustees must ensure compliance with SEBI Regulations.

ASSET MANAGEMENT COMPANY (AMC)

An AMC is the legal entity formed by the sponsor to run a mutual fund. The AMC is usually a private limited company in which the sponsors and their associates or joint venture partners are the shareholders. The trustees sign an investment agreement with the AMC, which spells out the functions of the AMC. It is the AMC that employs fund managers and analysts, and other personnel. It is the AMC that handles all operational matters of a mutual fund from launching schemes to managing them to interacting with investors. The people in the AMC who should matter the most to you are those who take investment decisions. There is the head of the fund house, generally referred to as the Chief Executive Officer (CEO). Under him comes the Chief Investment Officer (CIO), who shapes the funds investment philosophy, and fund managers, who manages its schemes. They are assisted by a team of analysts, who track markets, sectors and companies.
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Although these people are employed by the AMC, its you, the unit holders, who pays their salaries, partly or wholly. Each scheme pays the AMC an annual fund management fee, which is linked to the scheme size and results in a corresponding drop in your return. If a schemes corpus is up to Rs.100 crores it pays 1.25% of its corpus a year; on over Rs.100 crores, the fee is 1% of the corpus. So, if a fund house has two schemes, with a corpus of Rs.100 crores and Rs.200 crores respectively, the AMC will earn Rs.3.25 crore (1.25+2) as fund management fee that year.

If an AMCs expenses for the year exceed what it earns as fund management fee from its schemes, the balance has to be met by the sponsor. Again, financial strength comes into play: a cash-rich sponsor can easily pump in money to meet short falls, while a sponsor with less financial clout might force the AMC to trim costs, which could well turn into an exercise in cutting corners.

Regulatory requirements for the AMC:

Only SEBI registered AMC can be appointed as investment managers of mutual funds. AMC must have a minimum net worth of Rs.10 crores at all times. An AMC cannot be an AMC or Trustee of another Mutual Fund. AMCs cannot indulge in any other business, other than that of asset management At least half of the members of the Board of an AMC have to be independent.
The 4th schedule of SEBI Regulations spells out rights and obligations of both trustees

and AMCs.

Obligations of the AMC:

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 Investments have to be according to the investment management agreement and SEBI regulations. The actions of its employees and associates have to be as mandated by the trustees. AMCs have to submit detailed quarterly reports on the working and performance of the mutual fund. AMCs have to make the necessary statutory disclosures on portfolio, NAV and price to the investors.

Restrictions on the AMC:

AMCs cannot launch a scheme without the prior approval of the trustees. AMCs have to provide full details of the investments by employees and Board members in all cases where the investment exceeds Rs.1 lakh. AMCs cannot take up any activity that is in conflict with the activities of the mutual fund.

Conditions under which two AMCs can be merged:

SEBI Regulations require the following: SEBI and Trustees of both the funds must approve of the merger. Unit holders should be notified of the merger, and provided the option to exit at NAV without load.

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Conditions under which an AMC can be taken over:

SEBI approval is required for the change of ownership and unit holders have to be informed of the takeover.

Scheme take over:

If an existing mutual fund scheme is taken over by another AMC, it is called as scheme take over. The two mutual funds continue to exist. Trustee and SEBI approval and notification of the unit holders are required for scheme take over.

CUSTODIAN
A custodian handles the investment back office of a mutual fund. Its responsibilities include receipt and delivery of securities, collection of income, distribution of dividends and segregation of assets between the schemes. It also track corporate actions like bonus issues, right offers, offer for sale, buy back and open offers for acquisition. The sponsor of a mutual fund cannot act as a custodian to the fund. This condition, formulated in the interest of investors, ensures that the assets of a mutual fund are not in the hands of its sponsor. For example, Deutsche Bank is a custodian, but it cannot service Deutsche Mutual Fund, its mutual fund arm.

BROKERS Role of Brokers in a Mutual Fund:

They enable the investment managers to buy and sell securities. Brokers are the registered members of the stock exchange. They charge a commission for their services.

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 In some cases, provide investment managers with research reports. Act as an important source of market information.

REGISTRAR OR TRANSFER AGENTS

Registrars, also known as the transfer agents, are responsible for the investor servicing functions. This includes issuing and redeeming units, sending fact sheets and annual reports. Some fund houses handle such functions in-house. Others outsource it to the Registrars; Karvy and CAMS are the more popular ones. It doesnt really matter which model your mutual fund opt for, as long as it is prompt and efficient in servicing you. Most mutual funds, in addition to registrars, also have investor service centers of their own in some cities.

Some of the investor related services are: Processing investor applications. Recording details of the investors. Sending information to the investors. Processing dividend payout. Incorporating changes in the investor information. Keeping investor information up to date.

DISTRIBUTORS

Role of Selling and Distribution Agents:

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 Selling agents bring investors funds for a commission. Distributors appoint agents and other mechanisms to mobilize funds from the investors. Banks and post offices also act as distributors. The commission received by the distributors is split into initial commission which is paid on mobilization of funds and trail commission which is paid depending on the time the investor stays with the fund.

HISTORY OF INDIAN MUTUAL FUNDS INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank the. The history of mutual funds in India can be broadly divided into four distinct phases.

First Phase 1964-87

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
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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)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 Crores.

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

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

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. 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

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets
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under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations.

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 assets under management 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 September, 2004, there were 29 funds, which manage assets of Rs.153108 Crores under 421 schemes. The net asset value (NAV) of mutual funds in India declined when stock prices started falling in the year 1992. Those days, the market regulations did not allow portfolio shifts into alternative investments. There was rather no choice apart from holding the cash or to further continue investing in shares. One more thing to be noted, since only closed-end funds were floated in the market, the investors disinvested by selling at a loss in the secondary market.

The performance of mutual funds in India suffered qualitatively. The 1992 stock market scandal, the losses by disinvestments and of course the lack of transparent rules in the whereabouts rocked confidence among the investors. Funds now have shifted their focus to the recession free sectors like pharmaceuticals, FMCG and technology sector. Funds performances are improving. Funds collection, which averaged at less than Rs100bn per annum over five-year period spanning 1993-98 doubled to Rs210bn in 199899. In the 2000 mobilization had exceeded Rs300bn. Total collection for the financial year ending March 2000 reached Rs450bn.

India had been at the first stage of a revolution that has already peaked in the U.S. The U.S. boasts of an Asset base that is much higher than its bank deposits. In India, mutual fund assets are not even 10% of the bank deposits, but this trend is beginning to change. The figures indicate that in the first quarter of the year 1999-2000 mutual fund assets went up by 115% whereas bank deposits rose by only 17%. (Source: Thinktank, The Financial Express September, 99) This is forcing a large number of banks to adopt the concept of narrow banking wherein the deposits are kept in Gilts and some other assets which improves liquidity and reduces risk. The basic fact lies that banks cannot be ignored and they will not close down completely. Their role as
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intermediaries cannot be ignored. It is just that Mutual Funds are going to change the way banks do business in the future

TYPES OF MUTUAL FUNDS

Mutual fund schemes may be classified on the basis of its structure and its investment objective.

By Structure: Open-ended Funds

An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.

Closed-ended Funds
A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor.

Interval Funds
Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre-determined intervals at NAV related prices.

By Investment Objective: Growth Funds

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

Income Funds
The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures and Government securities. Income Funds are ideal for capital stability and regular income.

Balanced Funds

The aim of balanced funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. In a rising stock market, the NAV of these schemes may not normally keep pace, or fall equally when the market falls. These are ideal for investors looking for a combination of income and moderate growth.

Money Market Funds

The aim of money market funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes may fluctuate depending upon the interest rates prevailing in the market. These are ideal for Corporate and individual investors as a means to park their surplus funds for short periods.

Load Funds
A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or sell units in the fund, a commission will be payable. Typically entry and exit loads range from 1% to 2%. It could be worth paying the load, if the fund has a good performance history.

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 No-Load Funds
A No-Load Fund is one that does not charge a commission for entry or exit. That is, no commission is payable on purchase or sale of units in the fund. The advantage of a no load fund is that the entire corpus is put to work.

Other Schemes: Tax Saving Schemes

These schemes offer tax rebates to the investors under specific provisions of the Indian Income Tax laws as the Government offers tax incentives for investment in specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The Act also provides opportunities to investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds, provided the capital asset has been sold prior to April 1, 2000 and the amount is invested before September 30, 2000.

Special Schemes

Industry Specific Schemes

Industry Specific Schemes invest only in the industries specified in the offer document. The investment of these funds is limited to specific industries like InfoTech, FMCG, and Pharmaceuticals etc.

Index Schemes
Index Funds attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50.

Sectoral Schemes
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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.

BENEFITS OF MUTUAL FUND INVESTMENT

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Professional Management
Mutual Funds 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 Funds invest in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. You achieve this diversification through a Mutual Fund with far less money than you can do on your own.

Convenient Administration
Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries, delayed payments and follow up with brokers and companies. Mutual Funds save your time and make investing easy and convenient.

Return Potential
Over a medium to long-term, Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities.

Low Costs
Mutual Funds are a 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-end schemes, the investor gets the money back promptly at net asset value related prices from the Mutual Fund. In closed-end schemes, the units can be sold on a stock exchange at the prevailing market price or the investor can avail of the facility of direct repurchase at NAV related prices by the Mutual Fund.

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Transparency
You get regular information on the value of your investment in addition to disclosure on the specific investments made by your scheme, the proportion invested in each class of assets 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.

Choice of Schemes
Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.

Well Regulated
All Mutual Funds are registered with SEBI and they function within the provisions of strict regulations designed to protect the interests of investors. The operations of Mutual Funds are regularly monitored by SEBI.

RISKS ASSOCIATED WITH MUTUAL FUNDS

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The most important relationship to understand is the risk-return trade-off. Higher the risk

greater the returns/loss and lower the risk lesser the returns/loss.
Hence it is up to you, the investor to decide how much risk you are willing to take. In order to do this you must first be aware of the different types of risks involved with your investment decision.

MARKET RISK
Sometimes prices and yields of all securities rise and fall. Broad outside influences affecting the market in general lead to this. This is true, may it be big corporations or smaller mid-sized companies. This is known as Market Risk. A Systematic Investment Plan (SIP) that works on the concept of Rupee Cost Averaging (RCA) might help mitigate this risk.

CREDIT RISK
The debt servicing ability (may it be interest payments or repayment of principal) of a company through its cashflows determines the Credit Risk faced by you. This credit risk is measured by independent rating agencies like CRISIL who rate companies and their paper. An AAA rating is considered the safest whereas a D rating is considered poor credit quality. A well-diversified portfolio might help mitigate this risk.

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 INFLATION RISK
Things you hear people talk about: Rs. 100 today is worth more than Rs. 100 tomorrow. Remember the time when a bus ride costed 50 paisa? Mehangai Ka Jamana Hai. The root cause , Inflation. Inflation is the loss of purchasing power over time. A lot of times people make conservative investment decisions to protect their capital but end up with a sum of money that can buy less than what the principal could at the time of the investment. This happens when inflation grows faster than the return on your investment. A well-diversified portfolio with some investment in equities might help mitigate this risk.

INTEREST RATE RISK

In a free market economy interest rates are difficult if not impossible to predict. Changes in interest rates affect the prices of bonds as well as equities. If interest rates rise the prices of bonds fall and vice versa. Equity might be negatively affected as well in a rising interest rate environment. A well-diversified portfolio might help mitigate this risk.

POLITICAL RISK
Changes in government policy and political decision can change the investment environment. They can create a favorable environment for investment or vice versa.

LIQUIDITY RISK
Liquidity risk arises when it becomes difficult to sell the securities that one has purchased. Liquidity Risk can be partly mitigated by diversification, staggering of maturities as well as internal risk controls that lean towards purchase of liquid securities. You have been reading about diversification above, but what is it? Diversification The nuclear weapon in your arsenal for your fight against Risk. It simply means that you must spread your investment across different securities (stocks, bonds, money market instruments, real estate, fixed deposits etc.) and different sectors (auto, textile, information technology etc.). This kind of a diversification may add to the stability of your returns,

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ACCOUNTING AND VALUATION

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 is dissolved or liquidated by selling off all the assets in the fund, this is the amount that the shareholders would collectively own. This gives rise to the concept of net asset value per unit, which is the value represented by the ownership of one unit in the fund. It is calculated simply by dividing the net asset value of the fund by the number of units. However, most people refer loosely to the NAV per unit as NAV, ignoring the per unit. We also abide by the same convention Calculation of Net Asset Value

The most important part of the calculation is the valuation of the assets owned by the fund. Once it is calculated, the NAV is simply the net value of assets divided by the number of the units outstanding. The detailed methodology for the calculation of the net asset value is given below:

NAV =

Market value of investments

+ Current assets and other assets

+ Accrued income

- Current liabilities and other liabilities

- Accrued expenses

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MAJOR PLAYERS IN MUTUAL FUNDS INDUSTRY

ABN AMRO Mutual Fund

ABN AMRO Mutual Fund was setup on April 15, 2004 with ABN AMRO Trustee (India) Pvt. Ltd. as the Trustee Company. The AMC, ABN AMRO Asset Management (India) Ltd. was incorporated on November 4, 2003. Deutsche Bank A G is the custodian of ABN AMRO Mutual Fund.

Birla Sun Life Mutual Fund

Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun Life Financial. Sun Life Financial is a global organization evolved in 1871 and is being represented in Canada, the US, the Philippines, Japan, Indonesia and Bermuda apart from India. Birla Sun Life Mutual Fund follows a conservative long-term approach to investment. Recently it crossed AUM of Rs. 10,000 Crores.

Bank of Baroda Mutual Fund (BOB Mutual Fund)

Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30, 1992 under the sponsorship of Bank of Baroda. BOB Asset Management Company Limited is the AMC of BOB Mutual Fund and was incorporated on November 5, 1992. Deutsche Bank AG is the custodian.

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HDFC Mutual Fund

HDFC Mutual Fund was setup on June 30, 2000 with two sponsor namely Housing Development Finance Corporation Limited and Standard Life Investments Limited.

HSBC Mutual Fund

HSBC Mutual Fund was setup on May 27, 2002 with HSBC Securities and Capital Markets (India) Private Limited as the sponsor. The Board of Trustees, HSBC Mutual Fund acts as the Trustee Company of HSBC Mutual Fund.

ING Vysya Mutual Fund

ING Vysya Mutual Fund was setup on February 11, 1999 with the same named Trustee Company. It is a joint venture of Vysya and ING. The AMC, ING Investment Management (India) Pvt. Ltd. was incorporated on April 6, 1998.

Prudential ICICI Mutual Fund

The mutual fund of ICICI is a joint venture with Prudential Plc. of America, one of the largest life insurance companies in the US of A. Prudential ICICI Mutual Fund was setup on 13th of October, 1993 with two sponsors, Prudential Plc. and ICICI Ltd. The Trustee Company formed is Prudential ICICI Trust Ltd. and the AMC is Prudential ICICI Asset Management Company Limited incorporated on 22nd of June, 1993.

Sahara Mutual Fund

Sahara Mutual Fund was set up on July 18, 1996 with Sahara India Financial Corporation Ltd. as the sponsor. Sahara Asset Management Company Private Limited incorporated on August 31, 1995 works as the AMC of Sahara Mutual Fund. The paid-up capital of the AMC stands at Rs 25.8 crore.
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State Bank of India Mutual Fund

State Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to launch offshore fund, the India Magnum Fund with a corpus of Rs. 225 cr. approximately. Today it is the largest Bank sponsored Mutual Fund in India. They have already launched 35 Schemes out of which 15 have already yielded handsome returns to investors. State Bank of India Mutual Fund has more than Rs. 5,500 Crores as AUM. Now it has an investor base of over 8 Lakhs spread over 18 schemes.

Tata Mutual Fund

Tata Mutual Fund (TMF) is a Trust under the Indian Trust Act, 1882. The sponsors for Tata Mutual Fund are Tata Sons Ltd., and Tata Investment Corporation Ltd. The investment manager is Tata Asset Management Limited and its Tata Trustee Company Pvt. Limited. Tata Asset Management Limited is one of the fastest in the country with more than Rs. 7,703 Crores (as on April 30, 2005) of AUM.

Kotak Mahindra Mutual Fund

Kotak Mahindra Asset Management Company (KMAMC) is a subsidiary of KMBL. It is presently having more than 1,99,818 investors in its various schemes. KMAMC started its operations in December 1998. Kotak Mahindra Mutual Fund offers schemes catering to investors with varying risk - return profiles. It was the first company to launch dedicated gilt scheme investing only in government securities.

Unit Trust of India Mutual Fund

UTI Asset Management Company Private Limited, established in Jan 14, 2003, manages the UTI Mutual Fund with the support of UTI Trustee Company Private Limited. UTI Asset Management Company presently manages a corpus of over Rs.20000 Crore. The sponsors of UTI Mutual Fund are Bank of Baroda (BOB), Punjab National Bank (PNB), State Bank of India (SBI), and Life Insurance Corporation of India (LIC). The schemes of UTI Mutual Fund are Liquid Funds, Income Funds, Asset Management Funds, Index Funds, Equity Funds and Balance Funds.

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Reliance Mutual Fund

Reliance Mutual Fund (RMF) was established as trust under Indian Trusts Act, 1882. The sponsor of RMF is Reliance Capital Limited and Reliance Capital Trustee Co. Limited is the Trustee. It was registered on June 30, 1995 as Reliance Capital Mutual Fund which was changed on March 11, 2004. Reliance Mutual Fund was formed for launching of various schemes under which units are issued to the Public with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities.

Standard Chartered Mutual Fund

Standard Chartered Mutual Fund was set up on March 13, 2000 sponsored by Standard Chartered Bank. The Trustee is Standard Chartered Trustee Company Pvt. Ltd. Standard Chartered Asset Management Company Pvt. Ltd. is the AMC which was incorporated with SEBI on December 20,1999.

Franklin Templeton India Mutual Fund

The group, Franklin Templeton Investments is a California (USA) based company with a global AUM of US$ 409.2 bn. (as of April 30, 2005). It is one of the largest financial services groups in the world. Investors can buy or sell the Mutual Fund through their financial advisor or through mail or through their website. They have Open end Diversified Equity schemes, Open end Sector Equity schemes, Open end Hybrid schemes, Open end Tax Saving schemes, Open end Income and Liquid schemes, Closed end Income schemes and Open end Fund of Funds schemes to offer.

Morgan Stanley Mutual Fund India

Morgan Stanley is a worldwide financial services company and its leading in the market in securities, investment management and credit services. Morgan Stanley Investment Management (MISM) was established in the year 1975. It provides customized asset management services and products to governments, corporations, pension funds and non-profit organizations. Its services are also extended to high net worth individuals and retail investors. In India it is known as Morgan Stanley Investment Management Private Limited (MSIM India) and its AMC is Morgan Stanley Mutual Fund (MSMF). This is the first close end diversified equity scheme serving the needs of Indian retail investors focusing on a long-term capital appreciation.

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Escorts Mutual Fund

Escorts Mutual Fund was setup on April 15, 1996 with Escorts Finance Limited as its sponsor. The Trustee Company is Escorts Investment Trust Limited. Its AMC was incorporated on December 1, 1995 with the name Escorts Asset Management Limited.

Alliance Capital Mutual Fund

Alliance Capital Mutual Fund was setup on December 30, 1994 with Alliance Capital Management Corp. of Delaware (USA) as sponsorer. The Trustee is ACAM Trust Company Pvt. Ltd. and AMC, the Alliance Capital Asset Management India (Pvt.) Ltd. with the corporate office in Mumbai.

Benchmark Mutual Fund

Benchmark Mutual Fund was setup on June 12, 2001 with Niche Financial Services Pvt. Ltd. as the sponsorer and Benchmark Trustee Company Pvt. Ltd. as the Trustee Company. Incorporated on October 16, 2000 and headquartered in Mumbai, Benchmark Asset Management Company Pvt. Ltd. is the AMC.

Canbank Mutual Fund

Canbank Mutual Fund was setup on December 19, 1987 with Canara Bank acting as the sponsor. Canbank Investment Management Services Ltd. incorporated on March 2, 1993 is the AMC. The Corporate Office of the AMC is in Mumbai.

Chola Mutual Fund

Chola Mutual Fund under the sponsorship of Cholamandalam Investment & Finance Company Ltd. was setup on January 3, 1997. Cholamandalam Trustee Co. Ltd. is the Trustee Company and AMC is Cholamandalam AMC Limited.

LIC Mutual Fund

Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989. It contributed
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Rs. 2 Crores towards the corpus of the Fund. LIC Mutual Fund was constituted as a Trust in accordance with the provisions of the Indian Trust Act, 1882. . The Company started its business on 29th April 1994. The Trustees of LIC Mutual Fund have appointed Jeevan Bima Sahayog Asset Management Company Ltd as the Investment Managers for LIC Mutual Fund.

GIC Mutual Fund

GIC Mutual Fund, sponsored by General Insurance Corporation of India (GIC), a Government of India undertaking and the four Public Sector General Insurance Companies, viz. National Insurance Co. Ltd (NIC), The New India Assurance Co. Ltd. (NIA), The Oriental Insurance Co. Ltd (OIC) and United India Insurance Co. Ltd. (UII) and is constituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882.

Fidelity Investments
Fidelity Investments was founded in 1946. Fidelity Investments is an international provider of financial services and investment resources that help individuals and institutions meet their financial objectives

COMPETITION IN MUTUAL FUNDS INDUSTRY

The most important trend in the mutual fund industry is the aggressive expansion of the foreign owned mutual fund companies and the decline of the companies floated by nationalized banks and smaller private sector players. Many nationalized banks got into the mutual fund business in the early nineties and got off to a good start due to the stock market boom prevailing then. These banks did not really understand the mutual fund business and they just viewed it as another kind of banking activity. Few hired specialized staff and generally chose to transfer staff from the parent organizations. The performance of most of the schemes floated by these funds was not good. Some schemes had offered guaranteed returns and their parent organizations had to bail out these AMCs by paying large amounts of money as the difference between the guaranteed and actual returns. The service levels were also very bad. Most of these AMCs have not been able to retain staff, float new schemes etc. and it is doubtful whether, barring a few exceptions, they have serious plans of continuing the activity in a major way. The experience of some of the AMCs floated by private sector Indian companies was also very similar. They quickly realized that the AMC business is a business, which makes money in a
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long term and requires deep-pocketed support in the intermediate years. Some have sold out to foreign owned companies, some have merged with others and there is general restructuring going on. The foreign owned companies have deep pockets and have come in here with the expectation of a long haul. They can be credited with introducing many new practices such as new product innovation, sharp improvement in service standards and disclosure, usage of technology, broker education and support etc. In fact, they have forced the industry to upgrade itself and service levels of organizations like UTI have improved dramatically in the last few years in response to the competition provided by these.

PROCEDURE TO INVEST IN MUTUAL FUND

CONCEPT OF MUTUAL FUND 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

Constitution of a Mutual Fund: There are a number of bodies that form a part of the mutual fund, they are as follows:
S ponsors

The sponsor is the company which sets up the mutual fund. It means anybody corporate acting alone or in combination with another body corporate established a mutual fund after initiating and completing the formalities.

Trustees The management of the mutual fund is subject to the control of the board of trustees of the fund. They guide the operations of the fund and carry the crucial responsibility to see that AMC always act in the best interest of the investors.

Asset Management Company

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The mutual fund is operated by a separately established asset management company (AMC).It manages the funds of the various schemes. It is entrusted with the specific task of mobilizing funds under the scheme.

Custodian A custodian is a person carrying on the activities of the safekeeping of the securities or participating in any clearing system on behalf of the clients to effect deliveries of the securities.

Analysis
1.Do you invest in Mutual Funds?
Page 59

Case Processing Summary Cases Valid N Respondent's occupation * 60 Investment in mutual fund

Percent 96.8%

Missing N Percent 2 3.2%

Total N 62

Percent 100.0%

Respondent's occupation * Investment in mutual fund Crosstabulation Investment in Respondent's occupation mutual fund Total yes No Yes Job 14 6 20 Business 18 2 20 Professional 16 4 20 Total 48 12 60
BrCat a hr
I v s eti mul net n n u a m t fn ud
ys e n o

2 0

1 5

Count

1 0

0 Jb o Bs es ui s n P f si nl r es a o o

Rs odns cua o epne t oc pt n ' i

From the above chart suggests that out of 60 respondents 12 respondents invests their money in mutual fund this shows that investor choose mutual fund because they want to earn good return with some safety. Ratio of respondents who are from business and professional is more than ratio of respondents who are from job that choose mutual fund as their investment tools. 2.If No Then, What is the most important reason for not investing in mutual funds?

Page 60

no

Reason for not investing in mutual funds

Lack of knowledge about mutual funds Enjoys investing in other options N o trus t over the fund managers Pies s how counts

12 out of 60 total respondents say they are not investing their money in mutual fund the main reason behind it they enjoys investing in other options except this investors didnt have trust over the fund manager of the AMC companies . And very few respondents says they have lack of knowledge about mutual funds.

3. Please rank the following investment instruments according to your preference. (On the basis of risk and return concept)

Page 61

Preference for fixed instruments Cases Valid N Respondent's occupation * 57 Investment prefrence for fixed instrument

Case Processing Summary Missing N 5 Total N 62

Percent 91.9%

Percent 8.1%

Percent 100.0%

Respondent's occupation * Investment prefrence for fixed instrument Crosstabulation Count Investment instrument 1st prefrence 8 4 7 19 prefrence 2nd preference 6 5 3 14
B C ar hart
Investm prefrence ent for fixed instrum ent
1st prefrence 2nd prefrence 3rd prefrence

for

fixed Total 1st prefrence 20 18 19 57

Respondent's occupation Job Business Professional Total

3rd prefrence 6 9 9 24

10

Count

0 Jo b B usiness P rofessional

R espon dent's o ccupation

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Above graph suggests that respondents who are doing job they prefer fixed deposit as their 1st preference because they are less interested in taking risk on the other hand respondents who are doing business or they are professional the ratio is lower than respondents who are doing job but they are interested in investing their money direct equity .

5. Please rank the following investment instruments according to your preference. (On the basis of risk and return concept) Respondents preference for mutual fund Case Processing Summary Cases Valid Respondent's occupation N Percent * Investment prefrence for 5 87.1% mutual funds 4

Missing N 8

Percent 12.9%

Total N 62

Percent 100.0%

Respondent's occupation * Investment preference for mutual funds Cross tabulation Count Investment prefrence for mutual funds 1st 2nd 3rd preference preference prefrence 9 7 0 11 5 3 9 6 4 29 18 7 Total 1st prefrence 16 19 19 54

Respondent's occupation Job Business Professional Total

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B rC a a h rt
In e tm n p fre c v s e t re n e fo m tu l fu d r u a ns
1 t p fre c s re n e 2 d p fre c n re n e 3 p fre c rd re n e

1 2

1 0

Count

0 Jb o Bs es u in s P fe s n l ro s io a

R s o d n o c p tio e p n e t's c u a n

Above graph suggests that the respondents who are in the job or they are professional person the ratio of giving 1st preference to mutual fund is same where as the ratio of the respondents who are doing business is more . All the three type of respondents wants to earn some good return so they choose mutual fund as their 1st preference.

6. Please rank the following investment instruments according to your preference. (On the basis of risk and return concept) Respondents preference for direct equity Case Processing Summary

Cases Valid N

Percent

Missing N

Percent

Total N

Percent
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Respondent's occupation * Investment prefrence 51 for direct equity

82.3%

11

17.7%

62

100.0%

Respondent's occupation * Investment prefrence for direct equity Crosstabulation Count

Investment prefrence for direct equity 1st preference 2nd prefrence 3rd prefrence Respondent's occupation Total Job Business Professional 3 5 4 12 3 7 9 19 10 5 5 20

Total 1st prefrence 16 17 18 51

B rC a a h rt
In e tm n p fre c v s e t re n e fo d c e u r ire t q ity
1 t p fre c s re n e 2 dp fre c n re n e 3 p fre c rd re n e

1 0

Count

0 Jb o Bs es u in s P fe s n l ro s io a

R s o d n o c p tio e p n e t's c u a n

Above graph reflects that respondents who are from job they are the highest who gave 3rd preference to direct equity compare to others two .The ratio of respondents who are in the business or have some profession they gave 1st and 2nd preference to direct equity is more then the respondents who are doing job.
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7. What is your Average investment period?

3.39%

Average investment period

Les s than 6 m onths 6-12 m onths 12 months - 2 year More than 2 year Pies s how counts 40.68%

30.51%

25.42%

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The above graph reflects the average investment period for all the 60 respondents. 6 12 months Is the most chosen option among all the other options because of the current market condition people are not interested in investing their money for short time like less than 6 months because return will be very less in short time period .If they want to earn more return they need to invest their money at least more than 6 months or more than one year.

8. Television influence the purchase decision

Bars s how counts

20

15

Count

10

0 Lea st i n fu enti al 2 3 4 M ost in fl uen ti al

Television influencing factor for purchase

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Nowadays everybody have television at home and it became most used medium of marketing for any company. And AMC companies uses for advertise their investment product so the respondents who choose it is very less influential and the respondents who choose it is most influence for their purchase decision is very low but the ratio of 2 and 3 rank preferred by respondents is very high.

9. Internet influence for purchase decision

Page 68

Bars s how counts

20

15

Count

10

0 L ea st in fu en tial 2 3 4

Internet influencing factor for purchase

Usage of internet is increasing very high but it still needs to increase people uses it for their regular thing but few people manage their investment on internet. Above graph reflects that respondents choose 1st and 2nd rank are more than other two ranks choose by respondents. Internet is very convient option for investor and nowadays AMC companies are also promoting it.

10. Newspaper influencing purchase decision

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30

Bars s how counts

20

Count
10 0 2 3 4 M ost in flu en ti al

Newspaper influencing factor for purchase

Peoples uses newspaper as their medium of getting information from long time and its very effective with cheap rates. The above graph shows that most of the investor choose that they got information from newspaper and very less respondents choose its very less influencing factor for their purchase decision.

11 Articles/journals influence purchase decision

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25

Bars s how counts

20

Count

15

10

L ea st in fu en tial

Articles influencing factor for purchase

Above graph suggests that people are now somewhat aware about reading financial magazines or articles related to finance which regularly comes in newspaper .They can get the information and can take their decision according to it. But still lots of scope of increase the usage of this tool and above graph suggest the same thing most of respondents gave more preference to 1st and 2nd rank.

11. Relations/Friends influencing purchase decision

Page 71

25

Bars s how counts

20

Count

15

10

M ost in flu en ti al

Relation influencing factor for purchase

Above graph reflects that friends/relation is still very influential tool which influence the purchase decision. People still gave more preference to their friends/relative to ask before purchasing their investment product.

Page 72

How much Risk are you willing to take?

Bar Chart
Respondent's risk taking ability
Low Moderate High 15

20

Count

10

0 22-30 30-40 More than 40

Respondent's age

H0 Young age people are more willing to take risk than old age people

H1 Young age peoples arent willing to take risk than old age people Above graph reflects that all the three age group respondents wants to take moderate risk that means not very low or very high because its fact that if they want to earn some good profit they need to take some risk. The age group of more than 40 gave less preference to moderate risk compare to other two age group and they also choose they want to take low risk .As the age increase people are less interested in taking risk the line for moderate risk reflects the same thing. So we can say that H0 is accepted. 12. What is your preference in Mutual Funds?
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Case Processing Summary Cases Valid N Respondent's occupation * Prefrence 56 in mutual fund

Percent 90.3%

Missing N 6

Percent 9.7%

Total N 62

Percent 100.0%

Respondent's occupation * Prefrence in mutual fund Crosstabulation Count

Prefrence in mutual fund Equity funds Respondent' Job s occupation Business Profession al Total 8 2 9 19 Income funds 1 1 0 2 Money market funds 2 0 0 2 ELSS(TA X Balanced SAVER) Fund SIP 4 5 3 12 1 2 2 5 3 10 3 16

Total Equity funds 19 20 17 56

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B rC a a h rt
P fre c inm tu l re n e u a fu d n
E u fu d q ity n s In o e fu d cm ns M n y m rk t fu d oe a e ns E S (T XS V R L S A A E ) B la c d F n a ne ud S IP

1 0

Count

0 Jb o Bs es u in s P fe s n l ro s io a

R s o d n o c p tio e p n e t's c u a n

Above graph reflects that the respondents who are from job or they have their own profession choose equity fund more than other options available. And the respondents have their own business they choose SIP more as their investment product compare to two other groups because SIP is more safe and convient option for investment. ELSS (Tax Saver) is also choose by some respondents because they can get the tax saving benefit if they invests their money in it.

17. How much return do you expect from your Investments?

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6.9 0% 8.62% 31.03%

Return expected in percentage

up to 15% 15% -25% 25% -35% More than 35% Pies s how counts

53.45%

If any person invested their money in any option which are available in the market they obviously look for good return but if they want to earn high return than high risk is also associated with it as above graph suggests that most of the respondents choose the return between 15% to 25% because they knows that the current market condition its good return they can get and very few respondents choose more than 35% return which is actually very difficult to get.

18. Which type of Mutual funds do you prefer? Case Processing Summary
Page 76

Cases Valid N Respondent's occupation * Type of 57 funds prefer by repsondents

Percent 91.9%

Missing N 5

Percent 8.1%

Total N 62

Percent 100.0%

Respondent's occupation * Type of funds prefer by repsondents Crosstabulation

Count Type of funds prefer by respondents Total Open ended Close ended Open schemes Schemes schemes Respondent's occupation Total Job Business Professional 17 19 16 52 2 1 2 5 19 20 18 57

ended

BrCat a hr
Tp o f n spe rb y e f ud r f y e r po d n es net s
Oe e d ds h ms pn n e c e e C s edd c e e loe n e Sh ms

2 0

1 5

Count

1 0

0 Jb o Bs e s u in s P f s io a r es n l o

Rs o d n so c p to e p n e t c u ai n '

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H0: Most of the investors invest in Open-Ended Schemes of Mutual Funds. H1: Most of the investors do not invest in Open-Ended Schemes of Mutual Funds. Above graph shows that no matter in which profession they are but they choose open ended schemes. In open ended schemes they can enter at any time or they can exit at any time. And as they knows they with current market conditions no one wants to continue their investment if they wont get good return of negative return. Ratio of close ended schemes is very low. So we can say that H0 is accepted.

18. Do you get influenced by the name of Company promoting Mutual Funds?

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Promotion influence
18.97% yes no Pies s how counts

81.03%

Above graph suggests that AMC companies promoting their product well because 81% of the total respondents are influenced by their promotional activities and very few are not influenced.

19. Rank the following companies according to your investment preference

For Reliance mutual fund

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6.12%

4.08% 24.49%

Investment prefrence for reliance mutualfund

1st prefrence 2nd prefrence 3rd prefrence 4th prefrence 5th prefrence 8th prefrence Pies s how counts

20.41%

18.37%

26.53%

As reliance is very known company in India so investor believes gave 1st and 2nd preference to reliance followed by respondents 3rd preference and 4th preference and very few gave 7th & 8th preference to reliance.

. 20. Rank the following companies according to your investment preference

For UTI mutual fund

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10.34%

3 .45% 3.45% 10.3 4%

Investment prefrence for UTI mutualfund

1st prefrence 3rd prefrence 4th prefrence 5th prefrence 6th prefrence 7th prefrence 8th prefrence Pies s how counts

17.24%

17.24%

37.93%

UTI Mutual Fund is also know in the mutual fund market but the ratio of the respondents who gave 5th preference to UTI Mutual Fund is more than any other rank.Most of the respondents gave 5th,6th and 7th for the company in which they want to invest.

21. Rank the following companies according to your investment preference For SBI Mutual Fund

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13.33%

Investment prefrence for sbi mutual fund

1st prefrence 2nd prefrence 4th prefrence 5th prefrence 6th prefrence 7th prefrence 8th prefrence Pies s how counts

33.33%

10.00%

1 0.00%

10.00% 10.00%

13.33%

Above graph suggest that the respondents gave 8the as their most preferred rank to SBI Mutual Fund .The reason can be when share market was low SBI gives the bed return compare to other investment companies. About other ranks its very mix kind of reply from respondents.

23. Rank the following companies according to your investment preference

For HDFC mutual fund

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17.24%

3.45% 3.45% 3.45% 6.90%

Investment prefrence for hdfc mutual fund

1st prefrence 2nd prefrence 3rd prefrence 4th prefrence 5th prefrence 6th prefrence 7th prefrence 17.24% 8th prefrence Pies s how counts

20.69%

27.59%

HDFC Mutual Fund is also got very low preference in 1st,2nd ,3rd and 4th rank because most of the respondents gave 7th and 8th preference to HDFC Mutual Fund.

24. Rank the following companies according to your investment preference

For Birla sun life

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8.16% 2.04% 6.12%

Investment prefrence for bsl mutual fund

1st prefrence 2nd prefrence 3rd prefrence 4th prefrence 5th prefrence 6th prefrence 7th prefrence 51.02% Pies s how counts

14.29%

6.12%

12.24%

Birla Sun Life Mutual Fund is very preferred company choose by the respondents. The ratio for 1st rank is more than 50% which shows that the company is getting good reputation among the investors and the ratio for 6th and 7th rank is very low compare to others.

25. Rank the following companies according to your investment preference

For ICICI prudential

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6.82% 4.55% 6.82%

2.27% 18.18%

Investment prefrence for icici prudential

1st prefrence 2nd prefrence 3rd prefrence 4th prefrence 5th prefrence 6th prefrence 7th prefrence 8th prefrence

13.64% Pies s how counts 27.27%

20.45%

ICICI Prudential is also very reputed company and above graph reflects that the ratio of 1 st,2nd and 3rd rank is more than other rank and very few respondents gave 7th and 8th rank.

26. Rank the following companies according to your investment preference

For Principal PNB

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12.50%

3.13% 3.13%

Investment prefrence for principal pnb

1st prefrence 15.63% 2nd prefrence 3rd prefrence 4th prefrence 5th prefrence 6th prefrence 7th prefrence 8th prefrence 9.38% Pies s how counts

9.38%

28.13% 18.75%

Principal PNB is not very much famous in the responds group which I took as my sample because ,most of the respondents gave 4th ,5th and 8th rank to this company.

27. Rank the following companies according to your investment preference

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For Franklin Templeton

2.27% 4.55%

11.36%

Investment prefrence for frankling templeton

1st prefrence 2nd prefrence 3rd prefrence 4th prefrence 6th prefrence 8th prefrence 22.73% Pies s how counts

18.18%

40.91%

Franklin Templeton is very know company in the investment market and above graph reflects the same thing because the ratio of 1st, 2nd and 3rd rank is more than other ranks only 2% respondents choose it as last option.

28. Do you get influenced by the returns given by a fund or by the current NAV of a fund?

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Bars s how counts

30

Count

20

10

0 B y NAV B y Retu rn B y b o th

Influence by return or nav

If any investor invest money in the market then surely he/she is looking for good return and above graph reflects the same thihg. Respondets gave very less preference to NAV because the reason can be most of the respondents are not much aware about it they only interest in earning return. 29. Where do you find yourself as a mutual fund investor?

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10.00%

5.00%

Knowledge about mutual funds

Totally ignorant Partial knowleged of mutual funds Aware only of any specific s cheme in which you invested Fully aware

20.00%

Pies s how counts

65.00%

Above graph suggests that most of the respondets have partial knowledge about mutual fund followed by some of the customer who are aware only of any specifics scheme in which they have invested.Only 10% of the respondetns are full ware and only 5% of the total respondetn doesnt have any knowledge about mutual fund.

30. What is the major reason for using financial advisors?

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6.78% 22.03%

Usage fo financial advisor

Want help with as set allocation Dont have time to make my own inves tment decision To explain various inves tment option Want to make sure i m inves ting enough to m eet my financial goals Pies s how counts

18.64% 52.54%

Nowadays financial advisors are playing very important role to sell financial product. Most of the respondent havent knowledge about various investment option so financial advisor are really helpful to them. Asset allocation is also important part of financial planning so many respondents choose that they need help for their asset allocation.

31. From where do you purchase mutual funds?

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5.56% 11.11%

11.11%

Where do they purchase?

Directly from the AMCs Brokers only Brokers /sub brokers other s ources Pies show counts

72.22%

Brokers are very important role in the distribution channel of AMCS most of the respondents buys their investment produts from brokers. This shows the importance of brokers and they also want to earn money so they gave good service to their investors and in the return they gets good business. Only few of the investors knows that they can buy directly for AMCS so they can save their 2.25%.

32. Rank the following feature of the mutual funds that attracts you most.
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(Where 1 is most preferable and 4th is less is preferable) Preference for diversification

Bars s how counts

10.0

7 .5

Count
5 .0 2 .5 0 .0 1 st p refre nce 2 nd p re fren ce 3 rd p refre nce 4 th p refre nce

Investment prefrence for diversificaiton

Above graph reflects that respondents need diversification because through this they can reduce their risk and enjoy investing in other options. As graph shows that the ratio is 13 respondents choose it as their first priority option for investment.

33. Rank the following feature of the mutual funds that attracts you most. (Where 1 is most preferable and 4th is less is preferable)
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Preference for professional management

Bars s how counts

15

Count

10

0 1 st p refre nce 2 nd p re fren ce 3 rd p refrence 4 th p refre nce

Investment prefrence for professional managment

Mutual fund is like if a perosn now much aware about investment options which are avilabe in the market then they invest their money in the different AMCS so they invest their money on behalf of the investors so they gave 1st preference to professional management here we can say its use for fund managers.

34. Rank the following feature of the mutual funds that attracts you most. (Where 1 is most preferable and 4th is less is preferable)
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For reduction in risk and cost

Bars s how counts

15

Count

10

0 1 st p refre nce 2 nd p re fren ce 3 rd p refrence 4 th p refre nce

Investment prefrence for reduction in risk and cost

Mutual fund companies invest the money but they charge for that so its not fact if they invest in mutual fund they can save their cost and above graph reflects the same thing that they gave 4th pereference to reduction in risk and cost because afterall mutual fund are subject to market risk.

34. Rank the following feature of the mutual funds that attracts you most. (Where 1 is most preferable and 4th is less is preferable)
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Preference for long term planing

Bars s how counts

10

Count

1 st p refre nce

2 nd p re fren ce

3 rd p refrence

4 th p refre nce

Investment prefrece for help in long term goals

Above graph suggests that nowadays market condition is not very good so they are not interested in investing for long time they use it for their short term purpose but there are few respondents who uses it for their long term purpose who have some financial support or they want to earn good return or they can bare some loss.

35. According to you which is the most suitable stage to invest in mutual funds?

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Bar Chart
Most suitable age for investment
Young married age Young married with children stage Married with older children stage Pre-retirement age

20

15

Count

10

0 Job Business Professional

Respondent's occupation

As above graph reflects that whatever may be the profession but respondents think that young married age is the perfact age for investment when they dont have much responsibilities and they have some extra ammount for investment. It is general observation that young people are willing to take sonme risk and specially when they dont have any social responsibilties, And at the age of retirement people need fixed income because they are least interested in taking risk as they have some fix ammount which they got to use after retirement.

FINDINGS
My findings during the training with Karvy Stock Broking Limited, chikmagalore Companys Plan was good on the following ground:
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 Karvy

is

top-ranked

company

listed

with

NSDL

and

CDSL,

provide

trading through both NSE & BSE.

Karvy is providing software to their prospective sub broker and Remissers

Cheque updating in 15 mins. And the credit limit up to 10 times.

There are some more points

Mutual Fund Advisors give emphasis on mutual funds than other investment options. Mutual Funds have given a new direction to the flow of personal saving and enable small and medium investors in remote rural and semi urban areas to reap the benefits of the stock market investment. Indian Mutual Funds are thus playing a very important developmental role in allocation of scares resources in the emerging economy. Karvy is not able to provide sufficient services to the investors due to unawareness among advisors regarding services. The awareness level of investor is low in advisors are interested in dealing in mutual fund. Very less advisors are knowing about services provided by karvy.

Suggestions
There is need to build awareness of the new funds among the investors with

constantly being in contact with them.

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 Some of investors have asked for periodical market report about stockmarket

so that they can get the knowledge properly.

AMCs should go for increasing more awareness about different facilities of investment

such as SIP& STP among investors.

Karvy Must try to locate hard working distributors who are providing good business in

their respective geographical area.

Investors are never going to accept the entry load during NFO. So such type of

activity should be avoided as much as possible.

The company should advertise their tax saving plan more so that they can gain

more customers.

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Page 99

QUESTIONNAIRE

I am doing. and this is to acknowledge that the following survey is purely for academic purpose. My project topic is about knowing the Investors perception about investment in mutual funds. The identity of the respondent will be kept confidential. And
Name: ..... Phone: ..... Occupation:

(1) Age A. 22-30 B. 30-40 More than 40

(2)What is your annual income?

A.

Less than 2 lakh

B.

2 3 lakh

C. More than 3 lakh

(3) Do you invest in Mutual Funds? A. Yes If No Then, B. No

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What is the most important reason for not investing in mutual funds? A.Lack of knowledge about mutual funds

B. Enjoys investing in other options C. Its benefits are not enough to drive you for investment D. No trust over the fund managers (4) Please rank the following investment instruments according to your preference. (On the basis of risk and return concept)

A. Fixed instrument

B. Mutual fund

C. Direct Equity

(5) What is your Average investment period?

A. Less than 6 months.

B. 6 to 12 months.

C. 12 months to 2 year. (6)

D. More than 2 year.

Which are the primary sources of your knowledge about Mutual Funds as an investment option? Corresponding to your choices how would you rate their influence on your final Mutual Fund purchase decision. Please rank them on a scale of 1-5 with 1 representing minimal influence and 5 representing Strong influence. Source: Television Least Influential 12 3 4 5 Most Influential

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Rank this source *Source: Internet 1 Least Influential 2 3 4 5 Most Influential

Rank this source *Source: Newspaper 1 Least Influential 2 3 4 5 Most Influential

Rank this source *Source: Scholarly Journals / Articles 1 Least Influential 2 3 4 5 Most Influential

Rank this source *Source: Friends / Relations 1 Least Influential 2 3 4 5 Most Influential

(7) How much Risk are you willing to take? A. Low B. Moderate C. High

(8) What is your preference in Mutual Funds? A. Equity Funds C. Money Market Funds B. Income Funds D. ELSS (Tax Saver)

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E.

Balanced Funds

F. SIP

(9) How much return do you expect from your Investments? A. Up to 15% B. 15%-25% C. 25%-35% D.More than 35%

(10) Which type of Mutual funds do you prefer?

A. Open Ended Schemes

B.

Closed Ended Schemes

(11) Do you get influenced by the name of Company promoting Mutual Funds?

A.

Yes

B.

No

(12) Rank the following companies according to your investment preference A. Reliance Mutual Fund C. SBI Mutual Fund E. Birla Sun Life Mutual Fund G. Principal PNB B. UTI Mutual Fund D. HDFC Mutual Fund F.ICICI Prudential H. Franklin Templeton

(13) Do you get influenced by the returns given by a fund or by the current NAV of a fund?

A. By NAV

B. By Returns

C.

By Both
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(14) Where do you find yourself as a mutual fund investor? A. Totally ignorant

B. Partial knowledge of mutual funds

C. Aware only of any specific scheme in which you invested

D. Fully aware

(15) What is the major reason for using financial advisors? A. Want help with asset allocation

B. Dont have time to make my own investment decision

C. To explain various investment options

D. Want to make sure I am investing enough to meet my financial goals

(16) From where do you purchase mutual funds? A. Directly from the AMCs

B. Brokers only

C. Brokers/ sub-brokers
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D. Other sources

(17) Rank the following feature of the mutual funds that attracts you most. (Where 1 is most preferable and 4th is less is preferable) A. Diversification

B. Professional management

C. Reduction in risk and transaction cost

D. Helps in achieving long term goals

(18) According to you which is the most suitable stage to invest in mutual funds? A. Young unmarried stage

B. Young Married with children stage

C. Married with older children stage

D. Pre-retirement stage

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BIBLIOGRAPHY

http://www.amfiindia.com/

www.bseindia.com

www.nseindia.com

www.google.com www.birlasunlife.com

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