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    Analysis of Indian Mutual Funds Industry: A Project Report On

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    Sohel Bangi
    The document provides an overview of the Indian mutual funds industry with specific reference to SBI Mutual Fund. It discusses that mutual funds allow individual investors to invest in a diversified, professionally managed portfolio at a relatively low cost. A mutual fund pools the savings of many investors who share a common financial goal. It then invests the money in different types of securities like stocks, bonds, money market instruments, etc. depending on the scheme's objective. This provides investors an opportunity to invest in markets in a simple and cost-effective way. The document was prepared as a project report for a finance course.

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    Analysis of Indian Mutual Funds Industry: A Project Report On

    Uploaded by

    Sohel Bangi
    99 views77 pages
    The document provides an overview of the Indian mutual funds industry with specific reference to SBI Mutual Fund. It discusses that mutual funds allow individual investors to invest in a diversified, professionally managed portfolio at a relatively low cost. A mutual fund pools the savings of many investors who share a common financial goal. It then invests the money in different types of securities like stocks, bonds, money market instruments, etc. depending on the scheme's objective. This provides investors an opportunity to invest in markets in a simple and cost-effective way. The document was prepared as a project report for a finance course.

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    by sohel bangi

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    Mutual Fund

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    The document provides an overview of the Indian mutual funds industry with specific reference to SBI Mutual Fund. It discusses that mutual funds allow individual investors to invest in a diversified, professionally managed portfolio at a relatively low cost. A mutual fund pools the savings of many investors who share a common financial goal. It then invests the money in different types of securities like stocks, bonds, money market instruments, etc. depending on the scheme's objective. This provides investors an opportunity to invest in markets in a simple and cost-effective way. The document was prepared as a project report for a finance course.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    99 views77 pages

    Analysis of Indian Mutual Funds Industry: A Project Report On

    Uploaded by

    Sohel Bangi
    The document provides an overview of the Indian mutual funds industry with specific reference to SBI Mutual Fund. It discusses that mutual funds allow individual investors to invest in a diversified, professionally managed portfolio at a relatively low cost. A mutual fund pools the savings of many investors who share a common financial goal. It then invests the money in different types of securities like stocks, bonds, money market instruments, etc. depending on the scheme's objective. This provides investors an opportunity to invest in markets in a simple and cost-effective way. The document was prepared as a project report for a finance course.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 77

    A Project Report on

    Analysis of Indian Mutual Funds Industry


    With Specific Reference To SBI Mutual Fund Submitted by: (Finance) Roll No.-

    CONTENTS

    A Project Report on With Specific Reference To SBI Mutual Fund Submitted by: Finance! Roll "o#$ A%&"'W()*+)M)"T ).ecuti/e Summary
    Mutual Fund industry today, with about 34 players and more than five hundred

    1 1 1 1 1 1 1 1 , 110

    schemes, is one of the most preferred investment avenues in India. However, with a plethora of schemes to choose from, the retail investor faces problems in selecting funds. Factors such as investment strategy and management style are ualitative, but the funds record is an important indicator too. !hough past performance alone cannot be indicative of future performance, it is, fran"ly, the only uantitative way to #udge how good a fund is at present. !herefore, there is a need to correctly assess the past performance of different mutual funds. .......................................................................1$ HI%!&'( &F !H) I*+I,* M-!-,. F-*+ I*+-%!'(............................1/ 1/ !he mutual fund industry in India started in 1/03 with the formation of -nit !rust of India, at the initiative of the 1overnment of India and 'eserve 2an" the. !he history of mutual funds in India can be broadly divided into four distinct phases ...................1/ &pen3ended Funds....................................................................................................43 5losed3ended Funds..................................................................................................43 Interval Funds............................................................................................................ 44 1rowth Funds.............................................................................................................44 Income Funds............................................................................................................ 44 2alanced Funds.........................................................................................................44 Money Mar"et Funds................................................................................................. 46 .oad Funds................................................................................................................ 46
    4

    *o3.oad Funds.......................................................................................................... 46 !a7 %aving %chemes................................................................................................. 46 Industry %pecific %chemes.........................................................................................40 Inde7 %chemes.......................................................................................................... 40 %ectoral %chemes .....................................................................................................40 Management8............................................................................................................. 39 %avings :lans and Funds8 39 !he Mar"et ; !rust and 'each8................................................................................. 3$ Fund deployment8...................................................................................................... 3/ Investment guidelines8............................................................................................... 3/ , 5onglomerate with a vision8................................................................................... 4< 1lobal lin"s8 4< 'esearch strength8 41 %chemes offered8.......................................................................................................44 %chemes of a Mutual Fund8.......................................................................................43 'ules 'egarding ,dvertisement8............................................................................... 43 1eneral &bligations8.................................................................................................. 44 :rocedure for ,ction In 5ase &f +efault8.................................................................. 44 'estrictions on Investments8......................................................................................46 Fund sponsor8............................................................................................................49 Fund manager8...........................................................................................................49 !ype of fund............................................................................................................... 4$ !ype of scheme..........................................................................................................4/ Fees and charges...................................................................................................... 6< !he public offering price ............................................................................................6< !a7 implications......................................................................................................... 61 %ervice levels.............................................................................................................61 :erformance and *,= ..............................................................................................61

    B1 MAR&)T %APITA(ISATI'"
    3

    23

    H&> !& I*=)%! I* M-!-,. F-*+.......................................................................04

    S4ARP) RATI' %'"%)PT 'F FI"A"%IA( P(A""I"+


    ,n investor, depending on the age, ris" ta"ing ability and time hori?on, should accordingly put his@her money in different asset classes in the proportion that suits

    53 60

    their uni ue needs and re uirements the best. .......................................................... 93 >ith the comple7ity and dynamism of the financial mar"ets increasing with the passage of time, there is a massive information overload for all investors. 2ig investors li"e FIIs have the time and e7pertise to manage such ris"s. 2ut for a retail investor, this can be highly intimidating. It is best to ascertain oneAs own uni ue re uirements based on the parameters discussed above, depending on which one can draw out an investment plan. ............................................................................... 93 ACKNOWLEDGEMENT

    I would like to th nk !" #uide Mr$ %%%%%%%%%%% &for hi' kind #uid nce nd 'upport throu#h the pro(ect$ )e h ' lw "' *een there whene+er I need n" e,pert d+ice nd h +e *een !ore th n willin# to #o out of the w " to help$

    I ! #r teful to the Li*r r" nd Co!puter Center 't ff for ll the help nd cooper tion e,tended to u'$

    -in ll". I would l'o like to t ke thi' opportunit" to th nk ll !" friend' who took out ti!e to #o throu#h our docu!ent' would not h +e *een nd pro+ide !e po'iti+e critici'!$ The pro(ect + lue ddition without the help of the *o+e 't ted people$

    Statement about the problem: A Mutu l -und i' tru't th t collect' the ' +in#' of nu!*er of in+e'tor' who 'h re l r#er re'ource of !one"$

    co!!on fin nci l #o l nd pool' it to#ether to cre te

    The !one" thu' collected i' in+e'ted *" the fund ! n #er in different t"pe' of 'ecuritie' dependin# upon the o*(ecti+e of the 'che!e$ The'e could r n#e fro! 'h re' to de*enture' to !one" ! rket in'tru!ent'$ The 'ecuritie' could *e further 'u*di+ided into technolo#" 'ecuritie'. ph r! ceutic l 'ecuritie'. -MCG 'ecuritie' etc$ The inco!e e rned throu#h the'e in+e't!ent' of the nu!*er of unit' owned *" the! &pro r t 0$ Thu' Mutu l -und i' the !o't 'uit *le in+e't!ent for the co!!on ! n ' it offer' di+er'ified. profe''ion ll" ! n #ed portfolio t few nd the c pit l ppreci tion re li/ed *" the 'che!e re 'h red *" it' unit holder' proportion tel" i$e$ on the * 'i'

    n opportunit" to in+e't in

    rel ti+el" low co't$ An"*od" with 'urplu' !one" c n in+e't. e+en ' little ' defined in+e't!ent o*(ecti+e profe''ion l ! nner$ M rket' for e1uit" 'h re'. de*enture'. *ond'

    thou' nd rupee' c n *e in+e'ted in Mutu l -und'$ E ch Mutu l -und 'che!e h ' nd 'tr te#"$ The te ! undert ke' thi' in the !o't

    nd other fi,ed inco!e in'tru!ent'2

    re l e't te. deri+ ti+e' nd other ''et' h +e re ched their ! turit" nd re dri+en *" l te't up3to3d te infor! tion$ A !utu l fund i' thu' the ide l in+e't!ent +ehicle for tod "4' co!ple, nd !odern fin nci l 'cen rio$ 5rice ch n#e' in the'e ''et' re dri+en *" #lo* l e+ent' occurrin# e+er" d ". in3f ct e+er" !inute in f r w " pl ce'$ It will *e +er" difficult. in3f ct ne,t to i!po''i*le for n ordin r" indi+idu l to h +e the knowled#e. 'kill'. inclin tion nd ti!e to keep tr ck of e+ent'. under't nd their i!plic tion' nd ct 'peedil"$ An indi+idu l l'o find' it difficult to keep tr ck of owner'hip of hi' ''et'. in+e't!ent'. *roker #e due' nd * nk tr n' ction' etc$ A !utu l fund i' the n'wer to ll the'e 'itu tion'$ It ppoint' profe''ion ll" 1u lified nd e,perienced 't ff th t ! n #e' e ch of the'e function' on full ti!e * 'i'$ The co't' of hirin# the'e profe''ion l' per in+e'tor re +er" low.
    0

    ' the pool of !one" in+e'ted i' l r#e$ In effect. the !utu l fund +ehicle e,ploit' econo!ie' of 'c le in proce''in#$ While the concept of indi+idu l' co!in# to#ether to in+e't !one" collecti+el" i' not new. the !utu l fund in it' pre'ent for! i' fund' # ined popul rit" onl" 67 th centur" pheno!enon$ In f ct. !utu l re fter the Second World W r$ Glo* ll". there ll three re ' 3 re'e rch. in+e't!ent' nd tr n' ction

    thou' nd' of fir!' offerin# ten' of thou' nd' of !utu l fund' with different in+e't!ent o*(ecti+e'$ Tod ". !utu l fund' collecti+el" ! n #e l!o't ' !uch ' or !ore !one" ' co!p red to * nk'$

    h! i" the particular topic cho"en#

    8ein# the 'tudent of fin nce nd fro! the f !il" where de lin# in !one" ! rket i' the ! in *u'ine''$ M" keen hi#hli#ht on re of intere't i' to work on pro(ect where I c n topic which c n help the co!!on people l'o to know *out 'o!ethin#

    which i' +er" difficult to di#e't for the! on the front end$ While t lkin# to ! n" people' in d " to d " life I co!e to know th t Mutu l -und' re 'o!ethin# *out which the !o't of the people' h +e perception' th t it i' (u't like the ' !e ' de lin# in Sh re' in which the" c n either e rn or c n lo'e their ll !ount$ So. I decided to t ke up !" pro(ect in the re where I c n re!o+e thi' perception of people' th t Mutu l -und' nd Sh re' re ' !e$ I h d inter+iewed 'o!e people in nd round 5une cit" to know !ore *out the

    Mutu l -und' fro! the con'u!er4' point of +iew$ Speci l c re w ' t ken to include people fro! ll inco!e *r cket'$ M n" people h d no ide of Mutu l -und'. which 'howed the low w rene'' le+el !on# the people of 5une *out the Mutu l -und'$ Thi' 'tre''e' the need for *etter ! rketin#
    9

    hat contribution $ould the project ma%e# Mutu l fund' re fin nci l inter!edi rie'. which collect the ' +in#' of in+e'tor' nd in+e't the! in l r#e nd well3di+er'ified portfolio of 'ecuritie' 'uch ' !one" ! rket in'tru!ent'. corpor te nd #o+ern!ent *ond' nd e1uit" 'h re' of (oint 'tock co!p nie'$ M-4' c n 'ur+i+e nd thri+e onl" if the" c n li+e upto the hope' nd tru't' of their indi+idu l !e!*er'$ Thi' pro(ect de l' with the 'tructure of the Indi n Mindu'tr" India('(I) A Mutu l -und i' tru't th t collect' the ' +in#' of nu!*er of in+e'tor' who 'h re l r#er re'ource of !one"$ nd it4' con'tituent'$ It l'o cl ''ifie' the Mutu l fund 'che!e' nd de'cri*e' the ! (or pl "er' in the indu'tr". with 'pecific reference to State Ban% o&

    co!!on fin nci l #o l nd pool' it to#ether to cre te

    The !one" thu' collected i' in+e'ted *" the fund ! n #er in different t"pe' of 'ecuritie' dependin# upon the o*(ecti+e of the 'che!e$ The'e could r n#e fro! 'h re' to de*enture' to !one" ! rket in'tru!ent'$ The 'ecuritie' could *e further 'u*di+ided into technolo#" 'ecuritie'. ph r! ceutic l 'ecuritie'. -MCG 'ecuritie' etc$ The inco!e e rned throu#h the'e in+e't!ent' of the nu!*er of unit' owned *" the! &pro r t 0$ In the end it i' concluded nd reco!!ended th t there i' to incre 'e w rene'' le+el. focu' on *uildin# need for 8etter ! rketin# nd the c pit l ppreci tion re li/ed *" the 'che!e re 'h red *" it' unit holder' proportion tel" i$e$ on the * 'i'

    rel tion'hip of tru't nd co!!it!ent

    with the in+e'tor'. pro+ide *etter r te of return' to the in+e'tor' th n offered *" other in+e't!ent option' nd pro+idin# *etter 'er+ice to the in+e'tor' While the concept of indi+idu l' co!in# to#ether to in+e't !one" collecti+el" i' not new. the !utu l fund in it' pre'ent for! i' 67th centur" pheno!enon$ In f ct. !utu l fund' # ined popul rit" onl" fter the Second World W r$ Glo* ll". there re thou' nd' of fir!' offerin# ten' of thou' nd' of !utu l fund' with different

    in+e't!ent o*(ecti+e'$ Tod ". !utu l fund' collecti+el" ! n #e l!o't ' !uch ' or !ore !one" ' co!p red to * nk'$ Thu' Mutu l -und i' the !o't 'uit *le in+e't!ent for the co!!on ! n ' it offer' di+er'ified. profe''ion ll" ! n #ed portfolio t

    n opportunit" to in+e't in rel ti+el" low co't$

    )bjecti*e and "cope o& the "tud!:

    The Mutu l -und Indu'tr" i' f 't # inin# popul rit" in tod "4' unpredict *le fin nci l 'cen rio$ It i' e!er#in# ' one of the !o't lucr ti+e in+e't!ent option'$ (he primar! objecti*e o& the project i" to +ain detailed in"i+ht into thi" Indu"tr!. I h +e tried to '"'te! tic ll" nd o*(ecti+el" look into ll3i!port nt 'pect'$ A co!*in tion of pri! r" nd 'econd r" d t h ' *een u'ed$ The for!er. thou#h nd in+e'tor li!ited. h ' helped u' #i+e fir't h nd infor! tion on co!p n"

    'enti!ent'$ The l tter h ' *een u'ed to under't nd the theoretic l 'pect'$ Str te#ic i!port nce h ' *een #i+en to *oth current nd p 't trend' nd we h +e tried to correl te *oth in ! nner to # in ! ,i!u! in'i#ht$ two3fold purpo'e$ The fir't. which

    Thi' docu!ent h ' *een de'i#ned to 'er+e i'

    l'o the ! in o*(ecti+e of the pro(ect. i' to reflect our under't ndin# of thi'

    indu'tr"$ The 'econd i' to pro+ide the re der 'i!il r det iled knowled#e The pri!e o*(ecti+e of the re'e rch w ' to deter!ine the perception of the Indi n in+e'tor tow rd' Mutu l fund' nd thi' i' de!on'tr ted in the l ter p rt of thi' report$

    ,imitation" o& the "tud!9

    The ! (or con'tr int f ced *" !e in ! kin# the pro(ect w ' ti!e$ The ti!e w ' not enou#h to know in det il *out the f ctor'. to ! (or the perfor! nce of ll !utu l fund' co!p nie' in the indu'tr" nd to wh t e,tent e ch f ctor i' re'pon'i*le for the ' !e$ Al'o in 'o!e c 'e' the co!p nie' cont cted. were not willin# to pro+ide de1u te infor! tion *out the Mutu l fund' 'che!e'. thi' con'tr int led to in *ilit" to co+er the whole d t $ Which could #i+e u' cle rer picture of the 'u*(ect$ Mo't of the d t *out the co!p nie' re collected fro! the concerned Co!p nie'

    We*'ite or directl" throu#h the Concerned Co!p nie'. which c n *e ! nipul ted or e, ##er ted *" the co!p n" &Window dre''in#0$ )owe+er. in'pite of ll the'e li!it tion' nd con'tr int. h ' *een ! de$ hu!*le tte!pt to pre'ent

    u'eful infor! tion nd for! t with n n l"tic l picture of the 'tud" with 'u##e'tion'

    1<

    Methodolo+!:

    Re"earch in thi" project $ill be conducted $ith the help o& the &ollo$in+: Thi' re'e rch i' e,plor tor" in n ture $I 'h ll *e collected d t fro! + riou' pri! r" nd 'econd r" 'ource'$ The choice of ' !ple 'che!e will *e #uided *" the f ct th t re 'on *le !ount of infor! tion will + il *le nd repre'entin# true picture of Indi n !utu l fund indu'tr"$ The !ethodolo#" dopted for the co!pletion of thi' pro(ect will *e di+ided into four 't #e'$ (he &ir"t "ta+e included under't ndin# the Concept. Structure nd polic" &rel ted to Mutu l fund'0 in the Indi n !utu l fund indu'tr" nd Second r" d t for thi' purpo'e will *e collected throu#h + riou' *ook' on !utu l fund'. *u'ine'' new'p per'. *u'ine'' ! # /ine'. tr de (ourn l'. nnu l : 1u rterl" perfor! nce report' of the concerned !utu l fund' co!p nie' nd the World wide we* &www Infor! tion3 concerned we*'ite' !entioned in the 8i*lio#r ph"0$ (he "econd "ta+e included the input 't #e in which + riou' t"pe' of infor! tion d t would *e collected rel ted to + riou' !utu l fund'$ The d t w ' collected throu#h di'cu''ion' : inter+iew' with the repre'ent ti+e' of the co!p nie'$ The fin nci l nd other rele+ nt d t will *e e,tr cted fro! the perfor! nce nd nnu l report' of the A''et ! n #e!ent co!p nie' &AMC0 concerned In the third "ta+e ll the # thered d t will *e rr n#ed nd t *ul ted to rri+e t the nece'' r" conclu'ion$ All the infor! tion w ' correl ted into t *ul tion ch rt' nd in fi#ure' to ! ke the infor! tion e '" to under't nd$ 5ri! r" collection of d t included prep r tion of tool' like ;ue'tionn ire' to e+ lu te + riou' 'che!e' !utu l fund' nd to deter!ine the perception of the Indi n in+e'tor tow rd' the !utu l nd findin#' of pri! r" d t will *e collected &S !ple fund'$ The re'ult'

    ;ue'tionn ire0 i' #i+en in the Anne,ure<$

    11

    (he la"t "ta+e. i$e$ the output 't #e included n l"/in# of the proce''ed infor! tion in to fin l findin#' nd co!p rin# the infor! tion with the d t of !utu l fund co!p nie' nd then rri+in# of fin l conclu'ion' nd polic" reco!!end tion' to =TI$

    14

    -.ecuti*e Summar!

    Mutu l fund' re fin nci l inter!edi rie'. which collect the ' +in#' of in+e'tor' nd in+e't the! in l r#e nd well3di+er'ified portfolio of 'ecuritie' 'uch ' !one" ! rket in'tru!ent'. corpor te nd #o+ern!ent *ond' nd e1uit" 'h re' of (oint 'tock co!p nie'$ M-4' c n 'ur+i+e M- indu'tr" India('(I) Thi' re'e rch i' e,plor tor" in n ture$ I collected d t fro! + riou' 'econd r" re 'on *le nd thri+e onl" if the" c n li+e up to the hope' nd l'o cl ''ifie' the Mutu l fund 'che!e' nd tru't' of their indi+idu l !e!*er'$ Thi' pro(ect de l' with the 'tructure of the Indi n nd it' con'tituent'$ It de'cri*e' the ! (or pl "er' in the indu'tr". with 'pecific reference to State Ban% o&

    'ource'$ The choice of ' !ple 'che!e w ' #uided *" the f ct th t fund indu'tr"$

    !ount of infor! tion w ' + il *le nd repre'entin# true picture of Indi n !utu l

    I !et 6> people in nd round 5une cit" to know !ore *out the Mutu l -und' fro! the con'u!er4' point of +iew$ Speci l c re w ' t ken to include people fro! ll inco!e *r cket'$ A*out ?7 people h d no ide of Mutu l -und'. which 'howed the
    13

    low

    w rene'' le+el

    !on# the people of 5une

    *out the Mutu l -und'$ Thi'

    'tre''e' the need for *etter ! rketin# In Indi . the trend i' th t in+e'tor' in+e't when there i' '"'te! work' *ro d *oo! in the 'tock ! rket

    nd withdr w their holdin#' in ti!e' of 'lu!p$ Thi' i' *'olutel" contr r" to how the ' their in+e't!ent' t ke pl ce in the 'lu!p period when !ount of !one"$ Withdr w l' w rene'' re #re ter unit' c n *e purch 'ed with ' !e 'tr te#" nd Mutu l -und co!p nie'

    corre'pondin#l" done in *oo! ti!e' ' ! ,i!u! return i' chie+ed$ Thi' i' the ri#ht re tr"in# to cre te thi' !on# con'u!er'$ In the end it i' concluded nd reco!!ended th t there i' to incre 'e w rene'' le+el. focu' on *uildin# with the in+e'tor'. pro+ide *etter r te of return'$ need for 8etter ! rketin#

    rel tion'hip of tru't nd co!!it!ent

    14

    )/-R/I-

    A Mutu l -und i'

    tru't th t collect' the ' +in#' of

    nu!*er of in+e'tor' who 'h re l r#er re'ource of !one"$

    co!!on fin nci l #o l nd pool' it to#ether to cre te

    The !one" thu' collected i' in+e'ted *" the fund ! n #er in different t"pe' of 'ecuritie' dependin# upon the o*(ecti+e of the 'che!e$ The'e could r n#e fro! 'h re' to de*enture' to !one" ! rket in'tru!ent'$ The 'ecuritie' could *e further 'u*di+ided into technolo#" 'ecuritie'. ph r! ceutic l 'ecuritie'. -MCG 'ecuritie' etc$ The inco!e e rned throu#h the'e in+e't!ent' of the nu!*er of unit' owned *" the! &pro r t 0$ 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 portfolio at a relatively low cost$ An"*od" with n" 'urplu' !one" th t c n *e in+e'ted. e+en ' little ' few thou' nd rupee' c n in+e't in Mutu l -und'$ E ch Mutu l -und defined in+e't!ent o*(ecti+e nd 'tr te#"$ The te ! undert ke' thi' in 'che!e h ' nd the c pit l ppreci tion re li/ed *" the 'che!e re 'h red *" it' unit holder' proportion tel" i$e$ on the * 'i'

    the !o't profe''ion l ! nner$ M rket' for e1uit" 'h re'. de*enture'. *ond' nd other fi,ed inco!e in'tru!ent'2

    re l e't te. deri+ ti+e' nd other ''et' h +e re ched their ! turit" nd re dri+en

    16

    *" l te't up3to3d te infor! tion$ A !utu l fund i' thu' the ide l in+e't!ent +ehicle for tod "4' co!ple, nd !odern fin nci l 'cen rio$ 5rice ch n#e' in the'e ''et' re dri+en *" #lo* l e+ent' occurrin# e+er" d ". in3f ct e+er" !inute in f r w " pl ce'$ It will *e +er" difficult. in3f ct ne,t to i!po''i*le for n ordin r" indi+idu l to h +e the knowled#e. 'kill'. inclin tion nd ti!e to keep tr ck of e+ent'. under't nd their i!plic tion' nd ct 'peedil"$ An indi+idu l l'o find' it difficult to keep tr ck of owner'hip of hi' ''et'. in+e't!ent'. *roker #e due' nd * nk tr n' ction' etc$ A !utu l fund i' the n'wer to ll the'e 'itu tion'$ It ppoint' profe''ion ll" 1u lified nd e,perienced 't ff th t ! n #e' e ch of the'e function' on full ti!e * 'i'$ The co't' of hirin# the'e profe''ion l' per in+e'tor re +er" low. ll three re ' 3 re'e rch. in+e't!ent' nd tr n' ction ' the pool of !one" in+e'ted i' l r#e$ In effect. the !utu l fund +ehicle e,ploit' econo!ie' of 'c le in proce''in#$

    While the concept of indi+idu l' co!in# to#ether to in+e't !one" collecti+el" i' not new. the !utu l fund in it' pre'ent for! i' fund' # ined popul rit" onl" 67 th centur" pheno!enon$ In f ct. !utu l re fter the Second World W r$ Glo* ll". there

    thou' nd' of fir!' offerin# ten' of thou' nd' of !utu l fund' with different in+e't!ent o*(ecti+e'$ Tod ". !utu l fund' collecti+el" ! n #e l!o't ' !uch ' or !ore !one" ' co!p red to * nk'$

    10

    0o$ Mutual Fund Indu"tr!

    or%"

    The workin# of Mutu l -und' c n *e *riefl" 't ted in the for! of the point' *elow9 3 A dr ft offer docu!ent i' prep red t the ti!e of l unchin# the fund$ T"pic ll". it pre 'pecifie' the in+e't!ent o*(ecti+e' of the fund. the ri'k ''oci ted. the co't' in+ol+ed in the proce'' nd the *ro d rule' for entr" into nd e,it fro! the fund nd other re ' of oper tion$ In Indi . 'pon'or' need ppro+ l fro! ' in !o't countrie'. the'e re#ul tor. SE8I &Securitie' e,ch n#e 8o rd of

    Indi 0 in our c 'e$ SE8I look' t tr ck record' of the 'pon'or nd it' fin nci l 'tren#th in #r ntin# ppro+ l to the fund for co!!encin# oper tion'$ A 'pon'or then hire' n ''et ! n #e!ent co!p n" to in+e't the fund'

    ccordin# to the in+e't!ent o*(ecti+e$ It l'o hire' nother entit" to *e the cu'todi n of the ''et' of the fund nd perh p' the fund$ third one to h ndle re#i'tr" work for the unit holder' &'u*'cri*er'0 of

    19

    In the Indi n conte,t. the 'pon'or' pro!ote the A''et M n #e!ent Co!p n" l'o. in which it hold' ! (orit" 't ke$ In ! n" c 'e' 'pon'or c n hold ?77@ 't ke in the A''et M n #e!ent Co!p n" &AMC0$ IN1'S(R2 PR)FI,-

    Mutual Fund indu"tr! toda!3 $ith about 45 pla!er" and more than &i*e hundred "cheme"3 i" one o& the mo"t pre&erred in*e"tment a*enue" in India. 0o$e*er3 $ith a plethora o& "cheme" to choo"e &rom3 the retail in*e"tor &ace" problem" in "electin+ &und". Factor" "uch a" in*e"tment "trate+! and mana+ement "t!le are 6ualitati*e3 but the &und" record i" an important indicator too. (hou+h pa"t per&ormance alone cannot be indicati*e o& &uture per&ormance3 it i"3 &ran%l!3 the onl! 6uantitati*e $a! to jud+e ho$ +ood a &und i" at pre"ent. (here&ore3 there i" a need to correctl! a""e"" the pa"t per&ormance o& di&&erent mutual &und". Worldwide. #ood !utu l fund co!p nie' o+er re known *" their AMC' nd thi' f !e i' directl" linked to their 'uperior 'tock 'election 'kill'$ -or !utu l fund' to #row. AMC' !u't *e held ccount *le for their 'election of 'tock'$ In other word'. there !u't *e 'o!e perfor! nce indic tor th t will re+e l the 1u lit" of 'tock 'election of + riou' AMC'$ One indu'tr" th t h ' under#one the !o't dr ! tic tr n'for! tion in the po't3 li*er li/ tion er of the ninetie' i' the fin nci l 'er+ice' indu'tr" nd in p rticul r. the !utu l fund' indu'tr"$ There h ' *een of product nd 'er+ice offerin#'$ p r di#! ch n#e in the 1u lit" nd 1u ntit"

    1$

    0IS()R2 )F (0- IN1IAN M'('A, F'N1 IN1'S(R2

    The mutual fund industry in India started in 1963 with the formation of of mutual funds in India can be broadly divided into four distinct phases Fir"t Pha"e 7 89:5-;<

    nit Trust of

    India, at the initiative of the !overnment of India and "eserve #an$ the% The history

    St te 8 nk of Indi &=TI0 w ' e't *li'hed on ?ABC *" n Act of 5 rli !ent$ It w ' 'et up *" the Re'er+e 8 nk of Indi nd functioned under the Re#ul tor" nd d!ini'tr ti+e control of the Re'er+e 8 nk of Indi $

    In ?ADE =TI w ' de3linked fro! the R8I nd the Indu'tri l De+elop!ent 8 nk of Indi &ID8I0 took o+er the re#ul tor" nd d!ini'tr ti+e control in pl ce of R8I$ The fir't 'che!e l unched *" =TI w ' =nit Sche!e ?ABF$ At the end of ?AEE =TI h d R'$B. D77 crore' of ''et' under ! n #e!ent$

    Second Pha"e 7 89;<-8994 (-ntr! o& Public Sector Fund")

    ?AED ! rked the entr" of non3 =TI. pu*lic 'ector !utu l fund' 'et up *" pu*lic 'ector * nk' nd Life In'ur nce Corpor tion of Indi &LIC0 nd Gener l In'ur nce Corpor tion of Indi &GIC0$

    =TI Mutu l -und w ' the fir't non3 =TI Mutu l -und e't *li'hed in Gune ?AED followed *" C n * nk Mutu l -und &Dec ED0. 5un( * N tion l 8 nk Mutu l
    1/

    -und &Au# EA0. Indi n 8 nk Mutu l -und &No+ EA0. 8 nk of Indi &Gun A70. 8 nk of 8 rod Mutu l -und &Oct A60$

    LIC e't *li'hed it' !utu l fund in Gune ?AEA while GIC h d 'et up it' !utu l fund in Dece!*er ?AA7$ At the end of ?AAC. the !utu l fund indu'tr" h d ''et' under ! n #e!ent of R'$FD. 77F crore'$

    (hird Pha"e 7 8994-=>>4 (-ntr! o& Pri*ate Sector Fund")

    With the entr" of pri+ te 'ector fund' in ?AAC. f !ilie'$

    new er 't rted in the Indi n wider choice of fund

    !utu l fund indu'tr". #i+in# the Indi n in+e'tor'

    ?AAC w ' the "e r in which the fir't Mutu l -und Re#ul tion' c !e into *ein#. under which ll !utu l fund'. e,cept =TI were to *e re#i'tered nd #o+erned$ The er'twhile Koth ri 5ioneer &now !er#ed with -r nklin Te!pleton0 w ' the fir't pri+ te 'ector !utu l fund re#i'tered in Gul" ?AAC$ The ?AAC SE8I &Mutu l -und0 Re#ul tion' were 'u*'tituted *" co!prehen'i+e now function' under the SE8I &Mutu l -und0 Re#ul tion' ?AAB$ !ore

    nd re+i'ed Mutu l -und Re#ul tion' in ?AAB$ The indu'tr"

    A' t the end of G nu r" 677C. there were CC !utu l fund' with tot l ''et' of R'$ ?.6?.E7> crore'$ The St te 8 nk of Indi with R'$FF. >F? crore' of ''et' under ! n #e!ent w ' w " he d of other !utu l fund'$

    Fourth Pha"e 7 "ince Februar! =>>4 In -e*ru r" 677C. followin# the repe l of the St te 8 nk of Indi Act ?ABC =TI w ' *ifurc ted into two 'ep r te entitie'$

    One i' the Specified =ndert kin# of the St te 8 nk of Indi with ''et' under ! n #e!ent of R'$6A. EC> crore' ' t the end of G nu r" 677C. repre'entin# *ro dl". the ''et' of =S BF 'che!e. ''ured return nd cert in other 'che!e'$ The Specified =ndert kin# of =nit Tru't of Indi . functionin# under n d!ini'tr tor nd under the rule' fr !ed *" Go+ern!ent of Indi nd doe' not co!e under the pur+iew of the Mutu l -und Re#ul tion'$

    4<

    The 'econd i' the =TI Mutu l -und Ltd. 'pon'ored *" =TI. 5N8. 8O8 nd LIC$ It i' re#i'tered with SE8I nd function' under the Mutu l -und Re#ul tion'$ With the *ifurc tion of the er'twhile =TI which h d in M rch 6777 !ore th n R'$DB.777 crore' of ''et' under ! n #e!ent nd with the 'ettin# up of =TI Mutu l -und. confor!in# to the SE8I Mutu l -und Re#ul tion' !on# different pri+ te 'ector fund'. the nd With recent !er#er' t kin# pl ce #rowth$

    !utu l fund indu'tr" h ' entered it' current ph 'e of con'olid tion

    A' t the end of Septe!*er 677F. there were 6A fund'. which ! n #e ''et' of R'$?>C?7E crore' under F6? 'che!e'$

    ASS-(S 'N1-R MANA?-M-N( (A'M) ha*e +ro$n a" &ollo$":

    AS )N 48"t MAR@0 ?AB> ?AD7 ?AD> ?AE7 ?AE> ?AA7 ?AA> ?AAB ?AAD ?AAE ?AAA 6777 677? 677E 677A C?3! r37B

    A'M (R". @rore") 6F$BD EE$C7 ?BA$A> F>>$C7 6.67A$B? ?A.?C7$A6 D6.ABD$?D DF.C?>$C? D7.?AD$F? >E.A?E$66 D7.B6C$>7 ?7C.F>6$AE A7.>ED$77 ?77.>AF$77 DA.FBF$77 6C?EB6$77

    41

    The #r ph indic te' the #rowth of ''et' o+er the "e r'$

    44

    Mutu l fund 'che!e' ! " *e cl ''ified on the * 'i' of it' 'tructure in+e't!ent o*(ecti+e$ Thi' cl ''ific tion i' 'hown *elow$ (!pe" )& Mutual Fund"

    nd it'

    2 a s e d o n % tru c tu re 5 lo s e ) n d e d F u n d s In te rv a l F u n d s & pen ) nded Funds

    2 a s e d o n I n v e s t m e n t & b # e c t iv e .oad Funds 1 ro w th F u n d s 2 a la n c e d F u n d s * o .oad Funds In c o m e F u n d s M o n e y M a r" e t F u n d s

    & th e r % c h e m e s ! a 7 % a v in g % c h e m e s I n d u s t r y s p e c if i c % c h e m e s % p e c ia l % c h e m e s In d e 7 % c h e m e s % e c to ra l % c h e m e s

    )pen-ended Fund"

    An open3end fund i' one th t i' + il *le for 'u*'cription ll throu#h the "e r$ The'e do not h +e fi,ed ! turit"$ In+e'tor' c n con+enientl" *u" nd 'ell unit' t Net A''et H lue &INAHI0 rel ted price'$ The ke" fe ture of open3end 'che!e' i' li1uidit"$ @lo"ed-ended Fund" 'tipul ted ! turit" period which #ener ll" r n#in# fro! C to 'pecified period$ In+e'tor'

    A clo'ed3end fund h '

    ?> "e r'$ The fund i' open for 'u*'cription onl" durin#

    c n in+e't in the 'che!e t the ti!e of the initi l pu*lic i''ue nd there fter the" c n *u" or 'ell the unit' of the 'che!e on the 'tock e,ch n#e' where the" re li'ted$ In order to pro+ide n e,it route to the in+e'tor'. 'o!e clo'e3ended fund' #i+e n option of 'ellin# * ck the unit' to the Mutu l -und throu#h periodic repurch 'e t NAH
    43

    rel ted price'$ SE8I Re#ul tion' 'tipul te th t t le 't one of the two e,it route' i' pro+ided to the in+e'tor$ Inter*al Fund"

    Inter+ l fund' co!*ine the fe ture' of open3ended nd clo'e3ended 'che!e'$ The" re open for ' le or rede!ption durin# pre3deter!ined inter+ l' price'$ ?ro$th Fund" t NAH rel ted

    The i! of #rowth fund' i' to pro+ide c pit l ppreci tion o+er the !ediu! to lon#3 ter!$ Such 'che!e' nor! ll" in+e't ! (orit" of their corpu' in e1uitie'$ It h ' *een lon#3ter! pro+en th t return' fro! 'tock'. h +e outperfor!ed !o't other kind of in+e't!ent' held o+er the lon# ter!$ Growth 'che!e' re ide l for in+e'tor' h +in# outlook 'eekin# #rowth o+er Income Fund" period of ti!e$

    The i! of inco!e fund' i' to pro+ide re#ul r nd 'te d" inco!e to in+e'tor'$ Such 'che!e' #ener ll" in+e't in fi,ed inco!e 'ecuritie' 'uch nd re#ul r inco!e$ The Balanced Fund" i! of * l nced fund' i' to pro+ide *oth #rowth nd re#ul r inco!e$ Such ri'in# ' *ond'. corpor te de*enture' nd Go+ern!ent 'ecuritie'$ Inco!e -und' re ide l for c pit l 't *ilit"

    'che!e' periodic ll" di'tri*ute

    p rt of their e rnin# nd in+e't *oth in e1uitie' nd

    fi,ed inco!e 'ecuritie' in the proportion indic ted in their offer docu!ent'$ In when the ! rket f ll'$ The'e inco!e nd !oder te #rowth$ re ide l for in+e'tor' lookin# for

    'tock ! rket. the NAH of the'e 'che!e' ! " not nor! ll" keep p ce. or f ll e1u ll" co!*in tion of

    44

    Mone! Mar%et Fund"

    The i! of !one" ! rket fund' i' to pro+ide e '" li1uidit". pre'er+ tion of c pit l nd !oder te inco!e$ The'e 'che!e' #ener ll" in+e't in ' fer 'hort3ter! in'tru!ent' 'uch ' tre 'ur" *ill'. certific te' of depo'it. co!!erci l p per nd inter3 * nk c ll !one"$ Return' on the'e 'che!e' ! " fluctu te dependin# upon the intere't r te' pre+ ilin# in the ! rket$ The'e re ide l for Corpor te nd indi+idu l in+e'tor' ' !e n' to p rk their 'urplu' fund' for 'hort period'$

    ,oad Fund"

    A Lo d -und i' one th t ch r#e' "ou *u" or 'ell unit' in the fund. #ood perfor! nce hi'tor"$ No-,oad Fund"

    co!!i''ion for entr" or e,it$ Th t i'. e ch ti!e co!!i''ion will *e p " *le$ T"pic ll" entr" nd

    e,it lo d' r n#e fro! ?@ to 6@$ It could *e worth p "in# the lo d. if the fund h '

    A No3Lo d -und i' one th t doe' not ch r#e

    co!!i''ion for entr" or e,it$ Th t i'.

    no co!!i''ion i' p " *le on purch 'e or ' le of unit' in the fund$ The d+ nt #e of no lo d fund i' th t the entire corpu' i' put to work$ (a. Sa*in+ Scheme"

    The'e 'che!e' offer t , re* te' to the in+e'tor' under 'pecific pro+i'ion' of the Indi n Inco!e T , l w' ' the Go+ern!ent offer' t , incenti+e' for in+e't!ent in 'pecified +enue'$ In+e't!ent' ! de in E1uit" Linked S +in#' Sche!e' &ELSS0 nd 5en'ion Sche!e' re llowed ' deduction uJ' EE of the Inco!e T , Act. ?AB?$ The Act l'o pro+ide' opportunitie' to in+e'tor' to ' +e c pit l # in' uJ' >FEA nd >FE8 *" in+e'tin# in Mutu l -und'. pro+ided the c pit l ''et h ' *een 'old prior to April ?. 6777 nd the !ount i' in+e'ted *efore Septe!*er C7. 6777$
    46

    Indu"tr! Speci&ic Scheme"

    Indu'tr" Specific Sche!e' in+e't onl" in the indu'trie' 'pecified in the offer docu!ent$ The in+e't!ent of the'e fund' i' li!ited to 'pecific indu'trie' like InfoTech. -MCG. nd 5h r! ceutic l' etc$ Inde. Scheme" p rticul r inde, 'uch ' the

    Inde, -und' tte!pt to replic te the perfor! nce of 8SE Sen'e, or the NSE >7 Sectoral Scheme"

    Sector l -und' re tho'e. which in+e't e,clu'i+el" in

    'pecified indu'tr" or

    #roup

    of indu'trie' or + riou' 'e#!ent' 'uch ' KAK Group 'h re' or initi l pu*lic offerin#'$

    40

    Alone =TI with (u't one 'che!e in ?ABF now co!pete' with ' ! n" ' F77 odd product' nd CF pl "er' in the ! rket$ In 'pite of the 'tiff co!petition nd lo'in# ! rket 'h re. =TI 'till re! in' for!id *le force to reckon with$

    L 't 'i, "e r' h +e *een the !o't tur*ulent ' well ' e,itin# one' for the indu'tr"$ New pl "er' h +e co!e in. while other' h +e decided to clo'e 'hop *" either 'ellin# off or !er#in# with other'$ Product inno*ation i" no$ pa""A $ith the +ame "hi&tin+ to per&ormance deli*er! in &und mana+ement a" $ell a" "er*ice$ Tho'e directl" ''oci ted with the fund ! n #e!ent indu'tr" like di'tri*utor'. re#i'tr r' nd tr n'fer #ent'. nd e+en the re#ul tor' h +e *eco!e !ore ! ture nd re'pon'i*le$ The indu'tr" i' l'o h +in# h ' lw "' *een profound i!p ct on fin nci l ! rket'$ While =TI

    do!in nt pl "er on the *our'e' ' well ' the de*t ! rket'.

    the new #ener tion' of pri+ te fund' which h +e # ined 'u*'t nti l ! '' re now 'een fle,in# their !u'cle'$ -und ! n #er'. *" their 'election criteri for 'tock' h +e forced corpor te #o+ern nce on the indu'tr"$ 8" rew rdin# hone't tr n'p rent ! n #e!ent with hi#her + lu tion'. cre ted where the corpor te 'ector i' !ore tr n'p rent then *efore$ -und' h +e 'hifted their focu' to the rece''ion free 'ector' like ph r! ceutic l'. -MCG nd technolo#" 'ector$ -und' perfor! nce' +er #ed t le'' th n R'?77*n per re i!pro+in#$ -und' collection. which nnu! nd '"'te! of ri'k3rew rd h ' *een

    o+er fi+e3"e r period 'p nnin# ?AAC3AE dou*led to R'6?7*n in ?AAE3AA$ In the current "e r !o*ili/ tion till now h +e e,ceeded R'C77*n$ Tot l collection for the current fin nci l "e r endin# M rch 6777 i' e,pected to re ch R'F>7*n$ Wh t i' p rticul rl" noteworth" i' th t *ulk of the !o*ili/ tion h ' *een *" the pri+ te 'ector !utu l fund' r ther th n pu*lic 'ector !utu l fund'$ Indeed pri+ te M-' ' w ' # in't net inflow of R'$ DE?A$CF crore durin# the fir't nine !onth' of the "e r net inflow of R'$B7F$F7 crore in the c 'e of pu*lic 'ector fund'$
    49

    Mutu l fund' re now l'o co!petin# with co!!erci l * nk' in the r ce for ret il in+e'tor4' ' +in#' nd corpor te flo t !one"$ The power 'hift tow rd' !utu l fund' h ' *eco!e o*+iou'$ The co!in# few "e r' will 'how th t the tr dition l ' +in# +enue' re lo'in# out in the current 'cen rio$ M n" in+e'tor' re re li/in# th t in+e't!ent' in ' +in#' ccount' re ' #ood ' lockin# up their depo'it' in clo'et$ The fund !o*ili/ tion trend *" !utu l fund' in the current *i# w "$ The collection in "e r indic te' th t !one" i' #oin# to !utu l fund' in

    the fir't h lf of the fin nci l "e r ?AAA36777 ! tche' the whole of ?AAE3AA$ Indi i' t the fir't 't #e of re+olution th t h ' lre d" pe ked in the =$S$

    The =$S$ *o 't' of n A''et * 'e th t i' !uch hi#her th n it' * nk depo'it'$ In Indi . !utu l fund ''et' re not e+en ?7@ of the * nk depo'it'. *ut thi' trend i' *e#innin# to ch n#e$ Recent fi#ure' indic te th t in the fir't 1u rter of the current fi'c l "e r !utu l fund ''et' went up *" ??>@ where ' * nk depo'it' ro'e *" onl" ?D@$ &Source9 Think t nk. The -in nci l E,pre'' Septe!*er AA0 Thi' i' forcin# l r#e nu!*er of * nk' to dopt the concept of n rrow * nkin# wherein the depo'it' re kept in Gilt' nd 'o!e other ''et'. which i!pro+e' li1uidit" nd reduce' ri'k$ The * 'ic f ct lie' th t * nk' c nnot *e i#nored nd the" will not clo'e down co!pletel"$ Their role ' inter!edi rie' c nnot *e i#nored$ It i' (u't th t Mutu l -und' re #oin# to ch n#e the w " * nk' do *u'ine'' in the future$

    4$

    Ban%" *B" Mutual Fund" @0ARA@(-RIS(I@S Return' Ad!ini'tr ti+e e,p$ Ri'k In+e't!ent option' Network Li1uidit" ;u lit" of ''et' Intere't c lcul tion Gu r ntee T *le ?$? BANCS M'('A, F'N1S 8etter

    Low )i#h Low Low Moder te Le'' More )i#h penetr tion Low *ut i!pro+in# At co't 8etter Not tr n'p rent Tr n'p rent Mini!u! * l nce *etween ?7th$ :E+er"d " C7th$ Of e+er" !onth M ,i!u! R'$? L c on depo'it' None

    4/

    Morgan Stanley Asset Management (I) Pvt. td. Mor# n St nle" De n Witter : Co$ i' pro+ide' in'titution' pree!inent #lo* l fin nci l 'er+ice' fir! th t ppro,i! tel" >7.777

    wide r n#e of 'er+ice' to ! (or corpor tion'. #o+ern!ent'. fin nci l nd hi#h3net3worth indi+idu l' worldwide$ With 'i#nific nt pre'ence in e+er" fin nci l

    e!plo"ee' in 6F countrie'. the -ir! h ' in'titution l

    ! rket$ Mor# n St nle" De n Witter &MSDW0 In+e't!ent M n #e!ent i' the ''et ! n #e!ent di+i'ion of MSDW : Co$ MSDW In+e't!ent M n #e!ent w ' e't *li'hed in ?AD> to help #o+ern!ent'. corpor tion'. pen'ion fund' nd non3profit or# ni/ tion' !eet their lon#3ter! in+e't!ent o*(ecti+e'$ MSDW In+e't!ent M n #e!ent ! n #e' =SL CE> *illion for in'titution l in+e'tor'$ MSDW In+e't!ent M n #e!ent ! n #e' three ! (or off'hore Indi fund'. the Indi M #nu! -und &tr ded on the Du*lin Stock E,ch n#e0. the Indi In+e't!ent AG &li'ted on the Murich Stock E,ch n#e0 nd the Indi In+e't!ent -und &tr ded on the New Nork Stock E,ch n#e0$ The Mor# n St nle" Growth -und w ' l unched in G nu r" ?AAF nd # rnered n initi l corpu' of R'$ AE? crore'$ MSG- i' li'ted on the Mu!* i. 5une. C lcutt . Chenn i nd Ah!ed * d Stock E,ch n#e' nd i' l'o tr ded on the N tion l Stock E,ch n#e$ In ?AAD. MSG- unit' were pl ced ' eli#i*le 'ecuritie' with the N tion l Securitie' Depo'itor" Li!ited. which ! de it po''i*le for unit holder' to hold unit' in electronicJde! teri li/ed for!$ No$ of 'che!e' No$ of 'che!e' includin# option' E1uit" Sche!e' @orpu" under mana+ement ? ? ? AE? Crore ' on Gun C7. ?AAA nd indi+idu l

    3<

    !SP Merrill yn"# Investment Managers

    DS5 Merrill L"nch A''et M n #e!ent &Indi 0 Ltd$. & co!p n" re#i'tered under the Co!p nie' Act. ?A>B0 h ' *een 'et up *" DS5ML nd MLAM. to ct ' the A''et M n #e!ent Co!p n" &AMC0 to the -und$ The AMC h ' *een ppointed ' the In+e't!ent M n #er to the fund. MLAM hold' F7@ of the p id up 'h re c pit l of the AMC. while the * l nce B7@ & ppro,i! tel"0. i' held *" DS5ML$ The In+e't!ent M n #er w ' ppro+ed *" SE8I to ct ' the AMC for the Mutu l -und$ Merrill L"nch In+e't!ent M n #er' in+e't!ent philo'oph" i' de'i#ned to 'eek con'i'tent. lon#3ter! 'tr te#ic perfor! nce re'ult'$ It' di'ciplined + lue oriented ppro ch to ! n #in# it' client4' portfolio' h ' *een with the pri! r" o*(ecti+e of 'eekin# con'i'tent return' o+er lon# period$

    DS5 Merrill L"nch A''et M n #e!ent &Indi 0 Ltd$ h ' *een ch n#ed it' n !e to DS5 Merrill L"nch In+e't!ent M n #er4' Ltd$ w$e$f$ 67th Gul" 677C$ No$ of 'che!e' No$ of 'che!e' includin# option' E1uit" Sche!e' De*t Sche!e' Short ter! de*t Sche!e' E1uit" : De*t Gilt -und @orpu" under mana+ement F ?CF6$76 Crore ' on Gun C7. 677C 6 6 E ?C C 6

    $irla Sun i%e Asset Management Com&any td

    31

    8irl Sun Life AMC Ltd$ i' C n d pro+idin# nd the Adit"

    (oint +enture *etween Sun Life A''ur nce Co!p n" of 8irl Group. one of Indi n le din# Indu'tri l hou'e'$ le din# fin nci l 'er+ice' or# ni/ tion. nd corpor tion' worldwide$ Sun Life

    Sun Life A''ur nce Co!p n" of C n d i' ! n #e!ent product' for indi+idu l'

    di+er'ified r n#e of ri'k ! n #e!ent. we lth ! n #e!ent nd !one"

    co!!enced *u'ine'' in C n d in ?ED?. nd i' he d1u rtered in Toronto with ! (or oper tion' in C n d . =nited St te'. =nited Kin#do! nd A'i 5 cific$ Sun Life h ' con'i'tentl" e rned r tin#' th t r nk !on# the *e't in the North A!eric n fin nci l 'er+ice' 'ector$ It h ' ! (or pre'ence in the #rowin# !utu l fund ! rket' throu#h nd throu#h Spectru! =nited Mutu l M-S In+e't!ent M n #e!ent in the =$S$.

    -und' in C n d $ It i' l'o cti+e in the unit tru't *u'ine'' in the =$K$. nd it' ne r ter! pl n' include con'ider tion of !utu l fund offerin#' in the 5hilippine'$ The Adit" 8irl #roup i' !ultin tion l #roup con'i'tin# of the *e't known

    co!p nie' in Indi in

    r n#e of ke" 'ector' like Te,tile' &GRASIM0. R "on &Indi n

    R "on0. Alu!inu! &)INDALCO0. 5etroleu! &MR5L0. -in nce &8G-L0. -ertili/er' &Indo3Gulf0$ 8irl Mutu l -und offer' in+e't!ent Sche!e' which i! to c ter to e+er" need of the in+e'tor$ Dr win# on the e,perti'e of people nd network of !ore th n B>.777 co!!itted to pro+idin# not (u't product' fin nci l nd ri'k ! n #e!ent need'$ No$ of 'che!e' No$ of 'che!e' includin# option' E1uit" Sche!e' De*t Sche!e' Short ter! de*t Sche!e' E1uit" : De*t Gilt -und B
    34

    worldwide 't ff of o+er ?7.777 nd di'tri*utor'. Sun Life i'

    #ent'

    nd 'er+ice'. *ut 'olution' for client'

    ?7 67 E 6 6 6

    @orpu" under mana+ement

    CDF6 Crore ' on Gun C7. 677C

    'ot#ari Pioneer Asset Management Com&any td. Koth ri 5ioneer Mutu l -und i' 'pon'ored *" the In+e't!ent Tru't of Indi Ltd$ of the ) C Koth ri Group nd 5ioneer In+e't!ent M n #e!ent Inc$&5IM0 of The 5ioneer Group Inc$. =SA$ Koth ri 5ioneer i' one of Indi ' fir't !utu l fund in the pri+ te 'ector$ Tod ". it ! n #e' R'$6D77 crore' in ''et' for o+er B>7.777 in+e'tor' cro'' r n#e of #rowth. * l nced. inco!e. li1uid nd t , ' +in# fund'$ The 'pon'or' of the fund re 5ioneer In+e't!ent M n #e!ent &5IM0. =SA nd the In+e't!ent Tru't of Indi . who to#ether *rin# !ore th n ?67 "e r' of e,perience in fin nci l 'er+ice'$ 5IM currentl" ! n #e' o+er L6F *illion in ''et' worldwide on nd Ru''i $ *eh lf of indi+idu l nd in'titution l in+e'tor'$ 8 'ed in 8o'ton. 5ioneer h ' fin nci l 'er+ice' oper tion' in Ger! n". Irel nd. 5ol nd. C/ech Repu*lic. Indi fund in the =nited St te'$ No$ of 'che!e' No$ of 'che!e' includin# option' E1uit" Sche!e' De*t Sche!e' Short3ter! de*t Sche!e' E1uit" : De*t Mone" M rket @orpu" under mana+ement ? 6B77 Cr'$ ' on Gun C7. 677C 6 ? 6? CF ?E ?6 It' fl #'hip fund. 5ioneer -und. w ' founded in ?A6E nd i' the fourth olde't !utu l

    33

    Sun ( ) C Asset Management (India) Pvt. td.

    S=N -:C A''et M n #e!ent &Indi 0 5+t$ Ltd$ i'

    n e1u l (oint +enture *etween ''et nd

    -orei#n : Coloni l E!er#in# M rket' Ltd$ =$K$ nd S=N Securitie' &Indi 0 5+t$ Ltd$ -orei#n : Coloni l. e't *li'hed in ?EBE. i' one of Europe ' le din# ! n #e!ent #roup'$ -:C i' p rt of )"po 8 nk. one of Ger! n" ' olde't

    l r#e't * nk' nd h ' *een in+e'tin# in the Indi n 'tock ! rket' 'ince ?AAC$ SSIL i' n Indi n 'u*'idi r" co!p n" of Sun Group$ It' in+e't!ent technolo#ie' ' well ' nd intern tion l d+i'e' Indi do!e'tic fund0 cti+itie' con'i't of princip l nd co!!erci l cti+itie'$ nd in+e't!ent ! n #e!ent oper tion' in e!er#in# ! rket'

    S=N -:C currentl" ! n #e'

    5erfor! nce -und & n off'hore nd -:C 'pon'ored Indi n

    fund0. S=N -:C H lue -und &

    In+e't!ent Co!p n" SICAH &INDICO0$ S=N -:C l unched it' Indi n oper tion' *" *eco!in# the do!e'tic -CEM' INDICO fund$ It h ' 'ince then l unched Indi d+i'or to n

    5erfor! nce -und.

    off'hore fund. in ?AAB nd fi+e do!e'tic 'che!e' 3 H lue -und &?AAD0. Mone" H lue -und &?AAE0. 8 l nced -und &?AAA0. E!er#in# Technolo#ie' -und &677C0. Monthl" Inco!e 5l n &677C0 nd Re'ur#ent Indi E1uit" -und &677C0$ O+er the l 't > "e r'. the Co!p n" h ' *uilt 'tron# tr ck record of ! n #in# ''et cl ''e'. e1uit" nd corpu' of o+er R'$?777 crore &=SL6C7 de*t$ Tod ". Sun -:C ! n #e'J d+i'e'

    !n0. of which o+er >7@ i' e1uit"$ Thi' corpu' i' 'pre d o+er E 'che!e'. B do!e'tic nd 6 off'hore$ A te ! of >B people 'pre d o+er E loc tion 'er+ice l!o't E7.777 cu'to!er'$ No$ of 'che!e' No$ of 'che!e' includin# option' E1uit" Sche!e' De*t Sche!e' D ?6 F >
    34

    Short ter! de*t Sche!e' E1uit" : De*t Cor&us under management

    6 ? &'( )rore as on May 31, '((3

    36

    E+er" "e r. !illion' of Indi n' entru't their ' +in#' to St te 8 nk of Indi to *uild up fin nci ll" 'ecure future$ Thi' f ith co!!it!ent. li1uidit" nd ttr cti+e nd confidence of in+e'tor' 'te! fro! =TIK' "ield on their in+e't!ent'$ ' reflected in it' lon# tr ck record to en'ure it' in+e'tor'. ' fet".

    Set up in ?ABF. *" n Act of 5 rli !ent. =TI Act ?ABC. =TI h ' #rown into one of the *i##e't pl "er' nd c r+ed out 'peci l po'ition in the Indi n c pit l ! rket$ ccount' under A7 ' +in# 'che!e' c terin# to Tod ". =TI ! n #e' n ##re# te portfolio of R'$ D6.BAE Crore ' on C?J?6J?AAA nd 'er+ice' F> !illion in+e'tor + r"in# need' of different cl ''e' of in+e'tor'$ =TI h ' 'er+icin# nd di'tri*ution network of >C *r nch office'. C67 Di'trict co!plete r n#e of 'er+ice' to

    Repre'ent ti+e' nd *out ED.777 #ent'$ It pro+ide' it' in+e'tor'. t not ch r#e n" ''et ! n #e!ent fee$

    low #ro'' co't of le'' th n ?$7? percent of in+i'i*le fund' nd doe'

    30

    Mana+ement:

    @hairman -.ec'(I*e 1irector"

    Shri M D !od r n Shri K G H '' l Shri A K Th kur Shri M M K pur Shri A N 5 lw nk r Shri S K 8 'u Dr 8 'ude* Sen Shri 8 G D #

    =TI i'

    Sa*in+"

    Plan"

    and

    Fund":

    '"!*ol of tru't nd confidence !on# Indi n in+e'tor'$ In the l 't 'e+en 'e+enfold incre 'e fro! B> l kh' to o+er

    "e r'. the nu!*er of 'che!e' ! n #ed *" =TI incre 'ed fro! C> to A6. while the nu!*er of unit holdin# ccount' recorded F>7 l kh'$ =TIK' e,p ndin# product r n#e co+er *ro d 'pectru! of in+e't!ent #o l' nd

    include' open end nd clo'ed3end inco!e nd c pit l ccu!ul tion fund'$ A!on# the !o't popul r re =nit Sche!e ?ABF nd M 'ter 'erie' e1uit" 'che!e' 'uch ' M 'ter'h re. M 'terplu'. M 'ter E1uit" 5l n'. etc$ =TI l'o ! n #e' 'che!e' i!ed t !eetin# 'pecific need' like

    Low co't in'ur nce co+er &=LI50 Monthl" inco!e need' of retired per'on' nd wo!en$ Inco!e tru't'$ 8uildin# up fund' to !eet co't of hi#her educ tion children$
    39

    nd li1uidit" need' of reli#iou'

    nd ch rit *le in'tit=TIon'

    nd

    nd c reer pl n' for

    -uture we lth nd inco!e need' of #irl child nd wo!en$ 8uildin# ' +in#' to co+er !edic l in'ur nce t old #e$ We lth ccu!ul tion to !eet inco!e need' fter retire!ent$

    (he Mar%et 7 (ru"t and Reach:

    Indi+idu l hou'ehold in+e'tor' ccount for AA@ of =TIK' in+e'tor ccount' nd *out B>@ of unit c pit l of =TI 'che!e'$ 5roduct' force of product' Tod ". the'e nd #ent' pro+ide rel ted re di'tri*uted throu#h 'upport to ! rketin# in+e'tor'$ *out ED.777 co!!i''ion3* 'ed c n+ ''in# 'er+ice #ent' tr ined to e,pl in the

    re 'uper+i'ed *" C67 Chief Repre'ent ti+e' who #uide the nd !oti+ te the #ent' in their re'pecti+e re ' of

    in+e'tor'. or# ni/e. tr in

    oper tion &'pecified di'trict'0$ In+e'tor' under + riou' 'che!e' of =TI re now 'er+iced throu#h >C =TI *r nche'. 6?C collection center' nd office' of B Re#i'tr r nd Tr n'fer A#encie' ppointed *" =TI$ 8e'ide' there re >6 fr nchi'e' office'. which ccept pplic tion' nd di'tri*ute certific te' to unit holder'$ =TI h ' 'et up it' own ''oci te co!p n". =TI3In+e'tor Ser+ice' Li!ited &=TIISL0. to !eet the #rowin# need' of unit holder 'er+icin#$ =TI i' l'o currentl" i!ple!entin# technolo#" up #r d tion pro#r !. in+ol+in#

    networkin# of on3line co!puter '"'te!' t =TIK' office'. nd office' of Re#i'tr r' nd Tr n'fer A#encie'$ Thi' would en *le =TI to i!pro+e 'er+ice 1u lit" 'i#nific ntl"$ =TI pu*li'he' weekl"Jd il" NAH' for ll it' li'ted 'che!e' nd offer' e+er" 'che!e$ It l'o pu*li'he' h lf3"e rl" re'ult' for ' ll 'che!e' infor! tion on portfolio pro'pectu' for nd rele 'e' nd =nit

    l'o l r#e't 'h reholdin# for #rowth 'che!e'

    Sche!e ?ABF$ =TI dhere' to di'clo'ure re1uire!ent' 'pecified *" SE8I$


    3$

    Fund deplo!ment:

    *+uity Investing, More th n fift" percent of tot l fund' of =TI Sche!e' re in+e'ted in e1uit"$ =TI i' the l r#e't oper tor in the Indi n e1uit" ! rket with tot l in+e't!ent' worth R' C>.77D$EC crore' t *ook + lue$ It' + riou' fund' collecti+el" hold 'tock' in !ore th n ?>77 Indi n co!p nie' nd ccount for o+er E percent of the ! rket c pit li/ tion of ll li'ted 'cript' on the 8o!* " Stock E,ch n#e$ 5orporate debt8 =TI i' one of the ! in pro+ider' of de*t fin nce to the corpor te 'ector$ In+e't!ent in corpor te de*t in'tru!ent' ccount for CE percent of the tot l in+e'ti*le fund'$ Credit ! rket oper tion' co+er r n#e of in'tru!ent' includin# pu*licl" i''ued nd pri+ tel" nd !ediu! ter! note'$ =TIK' de*t portfolio 1u lit" i' pl ced de*enture'. *ond'

    repre'ented *" AE percent perfor!in# ''et'$

    =TI i' l'o one of the l r#e't in+e'tor'. !on# non3* nkin# in'titution' in the !one" ! rket$ A*out ?? percent of the tot l in+e'ti*le fund' #o+ern!ent p per nd c ll depo'it'$ In*e"tment +uideline": re #uided *" in+e'tor'K re ccounted for *"

    Con'i'tent with the =TI Act. =TIK' in+e't!ent deci'ion' 'u*(ect to prudenti l e,po'ure nor!' c nnot in+e't !ore th n ?7 percent of

    intere't'$ =TIK' oper tion' re #uided *" =TI Act. ?ABC nd =TIK' in+e't!ent' re nd li!it' l id down *" =TI re#ul tion'$ It p rticul r 'che!e corpu' in the e1uit" of n" re * cked *" input' fro! independent

    one co!p n"$ =TIK' in+e't!ent deci'ion'

    #roup4' 'et3up for e1uit" re'e rch. in+e't!ent ppr i' l nd credit r tin#$
    3/

    A'

    A @on+lomerate $ith a *i"ion: di'tincti+e fin nci l in'titution. =TI ! n #e' fund' r i'ed throu#h co!!on nd t the ' !e ti!e pro+ide' co!p nie' fin nci l 'er+ice'. di+er'ified fin nci l con#lo!er te co!!on u!*rell . =TI h ' 'et up nd to !eet nu!*er of

    in+e'ti*le +ehicle'

    includin# underwritin#$ To cre te in+e'torK' + r"in# need' under in+e't!ent d+ice nd tr inin#$

    ''oci te co!p nie' in the field of * nkin#. 'ecuritie' tr din#. in+e'tor 'er+icin#.

    =TI 8 nk Ltd &?AAF033the fir't pri+ te 'ector * nk to *e 'et up under R8I #uideline'$ =TI Securitie' E,ch n#e Ltd &?AAF033the fir't in'titution ll" 'pon'ored corpor te 'tock3*rokin# fir!$ =TI In+e'tor Ser+ice' Ltd &?AAC033the fir't in'titution ll" 'pon'ored Re#i'tr r nd Tr n'fer #enc"$ =TI In'titute of C pit l M rket' &?AEA033the fir't 'uch in'titute in A'i . e,cludin# G p n$ o =TI In+e't!ent Ad+i'or" Ser+ice' Ltd &?AEE033the fir't Indi n In+e't!ent Ad+i'or re#i'tered with SEC. =S$ Con'i'tent with fin nci l 'ector dere#ul tion. =TI h ' pl n' to enter in'ur nce. pen'ion fund nd credit r tin# *u'ine''e'$

    ?lobal

    lin%": -und

    =TI pioneered the off'hore fund in+e't!ent in Indi n 'ecuritie'$ The Indi l unched in ?AEB ' clo'ed3end fund. *ec !e

    !ulti3cl '' open3ended fund in

    ?AAF$ There fter. in ?AEE =TI flo ted the Indi Growth -und. which i' li'ted. on the New Nork Stock E,ch n#e$ 8oth Indi -und nd Indi Growth -und h +e incre 'ed their corpu' throu#h ri#ht' i''ue'$ 8e'ide' the Colu!*u' Indi -und. l unched in
    4<

    ?AAF. =TI l unched the Indi Acce'' -und. n Indi n Inde, -und &tr ckin# the NSE >7 inde,0 in ?AAB$ TI International -imited i' ?77@ 'u*'idi r" of =nit Tru't of Indi . re#i'tered in the

    i'l nd of Guern'e"$ Thi' co!p n" w ' 'et up with the pri! r" o*(ecti+e of d!ini'tr tion nd ! rketin# of + riou' off'hore fund' ! n #ed *" =TI ' l'o to ct ' the ! n #e!ent co!p n" for the'e fund' ' re1uired *" the Guern'e" L w$ =TI Intern tion l Ltd h ' n office in London to ! rket =TIK' off'hore fund' to in'titution l client' in =K. Europe nd =SA$ It i' l'o re'pon'i*le for de+elopin# new product' ' well ' new *u'ine'' opportunitie' of =TI$ Thi' office l'o look' fter on#oin# in+e'tor rel tion' with forei#n in+e'tor' nd h ' 'ucceeded in #re tl" i!pro+in#

    co!!unic tion *etween =TI nd it' client' nd di'tri*utor' *ro d$ =TI Intern tion l Ltd h ' pl "ed n i!port nt role in l unchin# three new off'hore fund' of =TI 3 the Indi IT -und Ltd. the Indi De*t -und Ltd nd the Indi 5u*lic 'ector -und Ltd$ To c ter to + riou' need' of NRI in+e'tor' * 'ed in the Gulf re#ion. =TI h ' Repre'ent ti+e office of =TI ct' ' t Du* i$ The repre'ent ti+e office co+er' ll the 'i, GCC countrie' +i/$ =AE. O! n. Kuw it. S udi Ar *i . ; t r nd 8 hr in$ The Du* i office li i'on office *etween our NRI in+e'tor' in the Gulf nd =TI office' ll o+er Indi $ 8e'ide' pro+idin# infor! tion on current nd new 'che!e' of =TI. it l'o co3ordin te' with =TI office' in Indi for ll fter3' le re1ue't' of unit

    holder'J #ent'$ In the recent p 't. =TI h ' e,tended it' 'upport to the de+elop!ent of =nit Tru't' in other de+elopin# countrie'. like Sri L nk d+ice. =TI Co!p n" of Sri L nk $ Re"earch "tren+th: nd E#"pt$ 8e'ide' pro+idin# technic l l'o p rticip ted in the e1uit" c pit l of the =nit Tru't M n #e!ent

    =TI h ' it' own re'e rch 'et3up to de l with different re '$ The re ' of re'e rch n l"'i' co+er ! cro econo!". c pit l ! rket'. fin nci l 'ector nd !utu l fund'$

    41

    E1uit" Re'e rch perfor! nce$

    nd Credit R tin# #roup'

    l'o co+er indu'tr"

    nd corpor te

    =TI In'titute of C pit l M rket' conduct' tr inin# pro#r !!e' for the fin nci l co!!unit" nd help' de+elop !odern nd 'cientific ppro ch tow rd' in+e't!ent ! n #e!ent$ It l'o 'er+e' ' foru! to di'cu'' ide ' nd i''ue' rele+ nt to the

    c pit l ! rket *e'ide' pu*li'hin# re'e rch p per' rel tin# to c pit l ! rket$ Scheme" o&&ered: No$ of 'che!e' No$ of 'che!e' includin# option' E1uit" Sche!e' De*t Sche!e' E1uit" : De*t Mone" M rket Gilt -und @orpu" under mana+ement ? 6 D6>77 Crore ' on Gun C7. 677C D6 ??> C? BA C

    44

    Scheme" o& a Mutual Fund:

    The ''et ! n #e!ent co!p n" 'h ll l unch no 'che!e unle'' the tru'tee' ppro+e 'uch 'che!e nd 8o rd$ E+er" !utu l fund 'h ll lon# with the offer docu!ent of e ch 'che!e p " filin# fee'$ The offer docu!ent 'h ll cont in di'clo'ure' which re de1u te in order to en *le the in+e'tor' to ! ke infor!ed in+e't!ent deci'ion includin# the di'clo'ure on ! ,i!u! in+e't!ent' propo'ed to *e ! de *" the 'che!e in the li'ted 'ecuritie' of the #roup co!p nie' of the 'pon'or The !utu l fund nd ''et M n #e!ent Co!p n" 'h ll *e li *le to refund the pplic tion !one" to the pplic nt' If the !utu l fund f il' to recei+e the !ini!u! 'u*'cription !ount referred to in cl u'e & 0 of 'u*3re#ul tion &?0 If the !one"' recei+ed fro! the The pplic nt' for unit' re in e,ce'' of pplic nt who'e ccount' 'u*'cription ' referred to in cl u'e &*0 of 'u*3re#ul tion &?0$ ''et ! n #e!ent co!p n" 'h ll i''ue to the ccepted. unit certific te' or pplic tion h ' *een 't te!ent of cop" of the offer docu!ent h ' *een filed with the

    'pecif"in# the nu!*er of unit' llotted to the pplic nt ' 'oon ' po''i*le *ut not l ter th n 'i, week' fro! the d te of clo'ure of the initi l 'u*'cription li't nd or fro! the d te of receipt of the re1ue't fro! the unit holder' in n" open ended 'che!e$ Rule" Re+ardin+ Ad*erti"ement:

    The offer docu!ent

    nd

    d+erti'e!ent ! teri l' 'h ll not *e !i'le din# or

    cont in n" 't te!ent or opinion. which re incorrect or f l'e$ In+e't!ent O*(ecti+e' nd H lu tion 5olicie'9
    43

    The price t which the unit' ! " *e 'u*'cri*ed or 'old nd the price t which 'uch unit' ! " t n" ti!e *e repurch 'ed *" the !utu l fund 'h ll *e ! de + il *le to the in+e'tor'$ ?eneral )bli+ation":

    E+er" ''et ! n #e!ent co!p n" for e ch 'che!e 'h ll keep nd ! int in proper *ook' of ccount'. record' nd docu!ent'. for e ch 'che!e 'o ' to e,pl in it' tr n' ction' nd to di'clo'e t n" point of ti!e the fin nci l true nd f ir +iew of the 't te po'ition of e ch 'che!e nd in p rticul r #i+e

    of ff ir' of the fund nd inti! te to the 8o rd the pl ce where 'uch *ook' of ccount'. record' nd docu!ent' re ! int ined$ The fin nci l "e r for ll the 'che!e' 'h ll end ' of M rch C? of e ch "e r$ E+er" !utu l fund 'h ll h +e the nnu l 't te!ent of ccount' udited *" n uditor who i' not in ! n #e!ent co!p n"$ Procedure &or Action In @a"e )& 1e&ault: On nd fro! the d te of the 'u'pen'ion of the certific te or the ppro+ l. ' the c 'e ! " *e. the !utu l fund. tru'tee' or ''et ! n #e!ent co!p n". 'h ll ce 'e to c rr" on n" cti+it" ' !utu l fund. tru'tee or ''et ! n #e!ent co!p n". durin# the period of 'u'pen'ion. nd 'h ll *e 'u*(ect to the direction' of the 8o rd with re# rd to n" record'. docu!ent'. or cti+itie' ' 'ecuritie' th t ! " *e in it' cu'tod" or control. rel tin# to it' !utu l fund. tru'tee' or ''et ! n #e!ent co!p n"$ n" w " ''oci ted with the uditor of the ''et

    44

    Re"triction" on In*e"tment":

    A !utu l fund 'che!e 'h ll not in+e't !ore th n ?>@ of it' NAH in de*t in'tru!ent' i''ued *" #r de *" 'in#le i''uer. which re r ted not *elow in+e't!ent credit r tin# #enc" uthori/ed to c rr" out 'uch cti+it" under the ppro+ l of the 8o rd of Tru'tee' nd the 8o rd of ''et

    Act$ Such in+e't!ent li!it ! " *e e,tended to 67@ of the NAH of the 'che!e with the prior M n #e!ent Co!p n"$ A !utu l fund 'che!e 'h ll not in+e't !ore th n ?7@ of it' NAH in un r ted de*t in'tru!ent' i''ued *" 'in#le i''uer nd the tot l in+e't!ent in 'uch in'tru!ent' 'h ll not e,ceed 6>@ of the NAH of the 'che!e$ All 'uch in+e't!ent' 'h ll *e ! de with the prior ppro+ l of the 8o rd of Tru'tee' nd the 8o rd of ''et M n #e!ent Co!p n"$ No !utu l fund under ll it' 'che!e' 'hould own !ore th n ten per cent of n" co!p n"K' p id up c pit l c rr"in# +otin# ri#ht'$ Such tr n'fer' re done t the pre+ ilin# ! rket price for 1uoted in'tru!ent' on 'pot * 'i'$ The 'ecuritie' 'o tr n'ferred 'h ll *e in confor!it" with the in+e't!ent o*(ecti+e of the 'che!e to which 'uch tr n'fer h ' *een ! de$ A 'che!e ! " in+e't in nother 'che!e under the ' !e ''et ! n #e!ent co!p n" or n" other !utu l fund without ch r#in# n" fee'. pro+ided th t ##re# te inter 'che!e in+e't!ent ! de *" ll 'che!e' under the ' !e n" other ''et ''et + lue of the ! n #e!ent or in 'che!e' under the ! n #e!ent of ! n #e!ent co!p n" 'h ll not e,ceed >@ of the net !utu l fund$ The initi l i''ue e,pen'e' in re'pect of n" 'che!e ! " not e,ceed 'i, per cent of the fund' r i'ed under th t 'che!e$ E+er" !utu l fund 'h ll *u" nd 'ell 'ecuritie' on the * 'i' of deli+erie' nd 'h ll in ll c 'e' of purch 'e'. t ke deli+er" of rel ti+e 'ecuritie' nd in ll c 'e' of ' le. deli+er the 'ecuritie' nd 'h ll in no c 'e put it'elf in where*" po'ition

    46

    it h ' to ! ke 'hort ' le or c rr" forw rd tr n' ction or en# #e in * dl fin nce$ E+er" !utu l fund 'h ll. #et the 'ecuritie' purch 'ed or tr n'ferred in the n !e of the !utu l fund on 5endin# deplo"!ent of fund' of o*(ecti+e' of the 'che!e ccount of the concerned 'che!e. where+er 'che!e in 'ecuritie' in ter!' of in+e't!ent in+e't!ent' re intended to *e of lon#3ter! n ture$ !utu l fund c n in+e't the fund' of the 'che!e in

    'hort ter! depo'it' of 'cheduled co!!erci l * nk'$ No !utu l fund 'che!e 'h ll ! ke n" in+e't!ent in2 An" unli'ted 'ecurit" of n ''oci te or #roup co!p n" of the 'pon'or2 or An" 'ecurit" i''ued *" w " of pri+ te pl ce!ent *" co!p n" of the 'pon'or2 or The li'ted 'ecuritie' of #roup co!p nie' of the 'pon'or which i' in e,ce'' of C7@ of the net ''et' Oof ll the 'che!e' of !utu l fundP No !utu l fund 'che!e 'h ll in+e't !ore th n ?7 per cent of it' NAH in the e1uit" 'h re' or e1uit" rel ted in'tru!ent' of n" co!p n"$ 5ro+ided th t. the li!it of ?7 per cent 'h ll not *e 'ector or indu'tr" 'pecific 'che!e$ A !utu l fund 'che!e 'h ll not in+e't !ore th n >@ of it' NAH in the e1uit" 'h re' or e1uit" rel ted in+e't!ent' in c 'e of open3ended 'che!e nd ?7@ of it' NAH in c 'e of clo'e3ended 'che!e$ pplic *le for in+e't!ent' in inde, fund or n ''oci te or #roup

    40

    Ce! -lement" Fund "pon"or: tru't nd

    The Spon'or Co!p n" e't *li'he' the !utu l fund in the for! of

    re#i'ter' it with SE8I$ The *o rd of tru'tee' hold' the fund in tru't for unit holder' nd en'ure' co!pli nce with SE8I re#ul tion'. tru't deed #uideline' nd the ter!' of the A' fro! ''et ! n #e!ent #ree!ent *" the AMC$ n in+e'tor one 'hould check the 'pon'or' tr ck record$ Scrutin" of the fund con'i'tent tr ck record. 'pon'or' 'hould h +e re1ui'ite e,perience nd

    'pon'orK' tr ck record ! " forew rn "ou # in't (olt' like the CR8 'c nd l$ Ap rt * ck#round in ! n #in# !utu l fund'$ Fund mana+er: n e!plo"ee of the ''et ! n #e!ent co!p n" who

    The fund ! n #er i'

    for!ul te' the in+e't!ent 'tr te#" nd in+e't' the fund'$ A' n in+e'tor in the fund one 'hould 3 =nder't nd the in+e't!ent philo'oph" of the fund ! n #er$ 3 Check the return' he h ' #ener ted on fund' pre+iou'l" ! n #ed *" hi!. h ' ! n #ed in the p 't$
    49

    nd 3 -ind out

    whether the fund ! n #er h ' deli+ered on the in+e't!ent o*(ecti+e' of the fund' he

    (!pe o& &und

    8. )pen ended &und": In+e'tor' under thi' 'che!e re free to (oin the fund or withdr w fro! the fund t n" ti!e fter n initi l lock3in period$ Such fund' nnounce ' le nd repurch 'e price' fro! ti!e to ti!e$ In n open3ended 'che!e. in+e'tor' c n re'ell unit' in the fund to the i''uin# !utu l fund t the net ''et + lue &NAH0 of the unit'$ Thi' i' *ec u'e open3ended 'che!e' re per!itted to *u"J'ell their own unit'$ =. @lo"e ended &und": =nlike the open3ended 'che!e'. clo'e3ended 'che!e' do not i''ue unit' for repurch 'e rede!ption on periodic * 'i'$ It' unit' c n *e redee!ed onl" on ter!in tion of the 'che!e. or throu#h de lin#' in the 'econd r" ! rket$ In 'uch 'che!e'. the period of the 'che!e i' 'pecified t the out'et$ The" h +e definite t r#et !ount for the fund' nd c nnot 'ell !ore fter initi l offerin#$ If the 'che!e i' li!ited. in+e'tor' c n tr de unit' on the *our'e'. (u't like e1uitie' nd de*enture'$

    4$

    (!pe o& "cheme

    Mutu l fund' c n offer different in+e't!ent 'che!e'$ The'e 'che!e' c n *e cl ''ified '9 8. ?ro$th Fund" In*e"tment objecti*e: C pit l ppreci tion of e1uit" 'h re' In+e't!ent +enue9 E1uit" 'h re' of co!p nie' with hi#h #rowth potenti l =. Income Fund" In*e"tment objecti*e: 5ro+idin# ' fet" of in+e't!ent' nd re#ul r inco!e In+e't!ent +enue9 8ond'. de*enture' nd other de*t rel ted in'tru!ent' ' well ' e1uit" 'h re' of co!p nie' with hi#h di+idend p "out'$ There re 6 'pect' of inco!e fund' +i/$ low in+e't!ent ri'k with con't nt inco!e nd hi#h in+e't!ent ri'k #ener tin# hi#h inco!e$ 4. Balanced Fund" In*e"tment objecti*e: Mode't ri'k of in+e't!ent nd re 'on *le r te of return In+e't!ent +enue9 Gudiciou' !i, of e1uit" 'h re'. preference 'h re' ' well ' *ond'. de*enture' nd other de*t rel ted in'tru!ent' 5. Mone! Mar%et Mutual Fund" (MMMF") In*e"tment objecti*e: To t ke d+ nt #e of the +ol tilit" in intere't r te' in the !one" ! rket w " fro! the !one" ! rket c n In+e't!ent A+enue9 Certific te of depo'it' &CD'0. c ll !one" ! rket. co!!erci l p per'$ In+e'tor' who h d e rlier 't "ed p rticip te indirectl" throu#h MMM-'$ D. SpecialiEed Fund" In*e"tment )bjecti*e: To t ke d+ nt #e of condition' in p rticul r 'ector or 'pecific inco!e producin# 'ecurit" In+e't!ent A+enue9 Speci li/ed in+e't!ent' in 'ecuritie' of co!p nie' in cert in 'ector' or 'pecific inco!e producin# 'ecuritie'
    4/

    :. ,e*era+ed Fund" In*e"tment objecti*e: To incre 'e the + lue of the portfolio nd *enefit the 'h reholder' *" # in' e,ceedin# the co't of *orrowed fund' In+e't!ent +enue9 Specul ti+e nd ri'k" in+e't!ent' like 'hort ' le' to t ke d+ nt #e of declinin# ! rket$ <. Inde. Fund" In*e"tment )bjecti*e: To incre 'e the + lue of the portfolio in line with the *ench! rk inde, &ie$ 8SE Sen'e,. S:5 CNQ >70 In+e't!ent A+enue9 In+e't!ent' onl" in tho'e 'h re' th t for! p rt of the *ench! rk inde,. in e, ctl" the ' !e proportion. 'o th t the + lue of the inde, fund + rie' in proportion with the *ench! rk inde,$ ;. 0ed+e Fund" In*e"tment )bjecti*e: To hed#e ri'k' in order to incre 'e the + lue of the portfolio In+e't!ent A+enue9 E!plo" 'pecul ti+e tr din# principle' 3 *u" ri'in# 'h re' nd 'ell 'h re' who'e price' re likel" to f ll$ A' n in+e'tor "ou 'hould in+e't in 'che!e'. which !eet "our criteri in ter!' of "ou need for re#ul r inco!e. c pit l ppreci tion. nd ' fet" of princip l$ Fee" and char+e" fee for ! n #in# the fund'$ A' n in+e'tor in the fund we !u't *e

    AMC' ch r#e

    w re of the fee' nd ch r#e' of the AMC$ Two 'che!e' with !ore or le'' 'i!il r perfor! nce' would #ener te different return' if one of the two 'che!e' ch r#e' hi#h fee'$ (he public o&&erin+ price ' co!pen' tion for

    A ' le' lo d repre'ent' the !one" recei+ed *" the AMC pro!otion. di'tri*ution. d+erti'in# nd

    di'tri*utin# unit'$ It help' the fund to !eet it' e,pen'e' rel tin# to ' le' liter ture. #entJ*roker co!!i''ion'$ The 5u*lic

    6<

    offerin# 5rice &5O50 i' the price

    t which

    n in+e'tor *u"' into the fund

    nd i'

    function of *oth the NAH nd ' le' lo d$ -or in't nce. if the -und' NAH i' R' ?6J3 nd the pplic *le ' le' lo d i' B@ the 5O5 i' NAHJ &?3S le' lo d0 R?6J&?3$ 7B0 R ?6$DD If the in+e'tor pplied for R' ?7.777 worth of unit' he would recei+e DEC$7E> unit' &?7.777J?6$DD0$ Nou !i#ht *e re1uired to p " 'uch lo d ch r#e' either t the ti!e of *u"in# the unit' or t the ti!e of 'ellin# the unit'$ A' n in+e'tor "ou 'hould *e w re of 'uch entr"$ Je,it lo d' ' the" could h +e ! teri l i!p ct on return'$ (a. implication"

    In+e'tor' need to under't nd the t , i!plic tion' *efore in+e'tin# in the 'che!e'. ' one 'che!e ! " offer !ore ttr cti+e po't3t , return' co!p red to it' peer'$ A' =nion *ud#et' re#ul rl" offer t , *enefit' to !utu l fund' nd !utu l fund in+e'tor'. "ou ' n in+e'tor !u't re+iew the t , i!plic tion' of !utu l fund in+e't!ent'$ Ser*ice le*el"

    Ser+ice le+el' + r" cro'' fund'$ Le+el of co!!unic tion l'o + rie' cro'' fund'$ While 'o!e di'clo'e the fund portfolio 'o!e other' di'clo'e it !onthl"$ Per%orman"e and NA* E+er" fund i' *ench! rked 8SE 677. etc$ A' # in't n inde, like the 8SE Sen'e,. CNQ SN5 >7. # in't the nnu ll". other' di'clo'e it 1u rterl". nd

    n in+e'tor "ou !u't tr ck the fund' perfor! nce

    *ench! rk inde,$ Al'o it could *e u'eful for the in+e'tor to co!p re it' perfor! nce with other fund'$ Je,it lo d' ' the" could h +e ! teri l i!p ct on return'$

    61

    4<<<<<< 16<<<<< 1<<<<<< 6<<<<< <


    4 3 3< 1 3< 4 3< 6 3< 3< << <1 <4 <3 <4 <6 3< 0

    1+: per 5apita

    1ross +omestic savings %avings with 5ommercial 2an"s Mobili?ation by Mutual Funds

    4<

    4<

    4<

    4<

    4<

    4<

    64

    +ra&# S#o,ing Com&any Net (lo,s Co!p n" N !e' Koth ri 5ioneer ICICI 5rudenti l 8irl Mutu l -und Te!pleton 677?376 677637C 677C37F C7A$FB 3?7 3E?$F A7$6E ?B6$6 6>$7C ???$>E ??A$DA 677F37> 677>37B 3>$>A ?B?$? >6E$>C 6B7$F? FDF$FA >C$?F 6F6$DB

    0<< 6<< 4<< 3<< 4<< 1<< < 31<< 34<<


    Bothari :ioneer I5I5I :rudential 2irla Mutual Fund !empleton

    4<<13<4

    4<<43<3

    4<<33<4

    4<<43<6

    4<<63<0

    63

    +ra&# S#o,ing -elation $et,een Mar.et Indi"es And Mutual (unds Sales

    Month M "K76 Au#K7C No+K7F -e*K7> AprilK7B

    8SE Sen'e, CABF FEAE FB66 >FFD FB>E

    NSE Inde, ??C6 ?F?6 ?CDB ?B>> ?F7D

    M- S le' 6A67$BBBBBD C>CD$CCCCCC FD>6 ED7C$BBBBBD BBB6

    1<<<< $<<< 0<<< 4<<< 4<<< <


    4 <3 <6 M ay A< 4 *o vA< ,u gA Fe ,p ril A< bA 0

    2%) %ense7 *%) Inde7 MF %ales

    64

    S/OT ANA 0SIS O( M1T1A (1N!S

    Stren+th" o& Mutual Fund" are: ?$ The fund indu'tr" h ' introduced the *e't product' deli+ered 'uperl ti+e perfor! nce'$ 6$ It llow' '! ll in+e'tor' to in+e't in ! rket che pl" nd efficientl"$ C$ Nou #et to own 'e+er l co!p nie' no ! tter how !uch "ou decide to in+e't$ In other word' "ou #et in't nt Sdi+er'ific tion4$ F$ Nou c n e 'il" ! ke !onthl" contri*ution'$ >$ A profe''ion l ! n #er i' the one ! n #in# the !one"$ Theoretic ll" *ec u'e of hi'Jher e,perience nd knowled#e "ou 'hould recei+e *o+e +er #e return'$ B$ Her" hi#h tr n'p renc". ri'k of fr ud i' +er" le''$ D$ -or e+er" kind of profile &i$e$ con'er+ ti+e. !oder tel" ##re''i+e0 there re in+e't!ent option' + il *le$ ea%ne""e" o& Mutual Fund" are: ?$ 6$ C$ F$ >$ Lo d *ein# ch r#ed for entr" into nd e,it fro! L ck of fle,i*ilit"$ Lo d i' ch r#ed irre'pecti+e of the perfor! nce of the fund$ E,pen'e r tio i' ch r#ed 'ep r tel" ie "ou p " ! n #e!ent fee A l r#e ! (orit" of !utu l fund co!p nie' don4t co!e clo'e to p rticul r fund i' the *i##e't we kne'' of fund'$ ##re''i+e. nd 'er+ice'. nd

    no ! tter if the fund ! ke' "ou !one" or not$ *e tin# ! rket +er #e' like the S:5 >77$

    66

    )pportunitie" &or Mutual Fund": ?$ Onl" $>@ of Indi n ' +in#' i' in+e'ted in !utu l fund'$ Therefore there i' l r#e potenti l for the fund indu'tr" to !o*ili/e the ' +in#' of people re currentl" not llowed to in+e't in re l e't te$ Minto in+e't!ent' in M-4'$ 6$ Mutu l fund' nece'' r" effort'$ (hreat" to the Mutual Fund": ?$ One of the *i##e't ill' pl #uin# the fund indu'tr" tod " i' c lled l te tr din#$ The de l i' to offer preferenti l tre t!ent to l r#e in+e'tor' *" offerin# the! * ckd ted net ''et + lue' &NAH'0$ 6$ =LI5 &=nit Linked In+e't!ent 5l n03 if the ti!e hori/on of the in+e'tor i' !ore th n ?> "e r'. =LI5 *eco!e' r ther th n M-4S$ C$ 55- &5u*lic 5ro+ident -und0 i' l'o fund' run' the ri'k of lo'in# !one"$ F$ Re l e't te l'o po'e' *i# thre t for the indu'tr" 'ince in+e'tor prefer' in+e'tin# in propert" r ther th n fund'$ >$ 5ortfolio ! n #e!ent h ' now *een 't rted *" + riou' in'titution' 'uch &Kot k 'ecuritie'0. where*" 'ep r te portfolio c n *e de'i#ned for n indi+idu l in+e'tor$ )ere n indi+idu l i' ' +ed if the fund ! n#er doe' not ! ke ri#ht deci'ion re# rdin# fund4' portfolio$ thre t 'ince it #i+e' #u r nteed return 'ince no in+e't!ent i' ri'k free$ An"one who in+e't' in !utu l thre t to fund indu'tr"$ Al'o the *roker' ' " &* nk'0 #et hi#her *roker #e if n in+e'tor in+e't' in =LI5 ! kin# in+e't!ent' in propert" 'hould *e llowed$ Go+ern!ent i' ! kin#

    (inan"ial As&e"ts o% Mutual (unds:


    60

    Net A""et /alue: 8efore +enturin# into the ! rket rel ted function l e+ lu ted *" the le+el of it' profit'. ''et + lueU. ' e,pl ined *elow$ The net ''et + lue of the fund i' the cu!ul ti+e ! rket + lue of the ''et' fund net of it' li *ilitie'$ In other word'. if the fund i' di''ol+ed or li1uid ted. *" 'ellin# off ll the ''et' in the fund. thi' i' the !ount th t the 'h reholder' would collecti+el" own$ Thi' #i+e' ri'e to the concept of net ''et + lue per unit. which i' the + lue. repre'ented *" the owner'hip of one unit in the fund$ It i' c lcul ted 'i!pl" *" di+idin# the net ''et + lue of the fund *" the nu!*er of unit'$ )owe+er. !o't people refer loo'el" to the NAH per unit ' NAH. i#norin# the Iper unitI$ We l'o *ide *" the ' !e con+ention$ @alculation o& NA/ The !o't i!port nt p rt of the c lcul tion i' the + lu tion of the ''et' owned *" the fund$ Once it i' c lcul ted. the NAH i' 'i!pl" the net + lue of ''et' di+ided *" the nu!*er of unit' out't ndin#$ The det iled !ethodolo#" for the c lcul tion of the ''et + lue i' #i+en *elow$ A""et *alue i" e6ual to
    69

    'pect' of Mutu l fund'. it i' *u'ine'' i'

    i!port nt to under't nd the e+ lu tion criteri of the'e fund'$ Gu't '

    !utu l fund i' ''e''ed on the * 'i' of it' Tnet

    Su! of ! rket + lue of 'h re'Jde*enture' V Li1uid ''et'Jc 'h held. if n" V Di+idend'Jintere't ccrued A!ount due on unp id ''et' E,pen'e' ccrued *ut not p id

    Mar%et B &air *alue "chemeF" in*e"tment" G recei*able" G accrued income G )ther A""et"- Accrued e.pen"e" 7 Pa!able" 7 )ther" ,iabilitie" NA/ H Number" o& 'nit" out"tandin+

    A""et Mana+ement @ompan! (AM@): An A''et M n #e!ent Co!p n" or AMC i' the in+e't!ent ! n #er of the re'pecti+e tru't. which i' entitled to in+e't in different 'ecuritie' on *eh lf of unit holder'. in line with the o*(ecti+e' of re'pecti+e 'che!e'$ ,oad: The ch r#e collected *" in+e'tin# in it$ -ntr! load: When ch r#e i' collected t the ti!e of enterin# into the 'che!e it i' c lled n Entr" lo d or -ront3end lo d or S le' lo d$ The entr" lo d percent #e i' dded to the NAH t the ti!e of llot!ent$ -.it load: An E,it lo d or 8 ck3end lo d or Repurch 'e lo d i' ch r#e th t i' collected t the Mutu l -und fro! n in+e'tor for 'ellin# the unit' or

    ti!e of redee!in# or for tr n'fer *etween 'che!e' &'witch0$ The e,it lo d percent #e i' deducted fro! the NAH t the ti!e of rede!ption or tr n'fer *etween 'che!e'$

    6$

    S!"tematic In*e"tment Plan: S"'te! tic In+e't!ent 5l n i' nor! ll" offered *" ! n" open3ended !utu l fund' in order to encour #e re#ul r in+e't!ent'$ Thi' pl n llow' n in+e'tor to purch 'e ddition l unit' of the Sche!e *" in+e'tin# fi,ed !ount of rupee' e+er"

    !onthJ1u rter$ The *e ut" of the pl n i' th t ' the ! rket f ll' the nu!*er of unit' purch 'ed *" the in+e'tor incre 'e' ' the purch 'e' re linked to the NAH$ Thi' concept i' c lled Rupee Co't A+er #in#$ Rupee Co't A+er #in# doe' not #u r ntee profit or protect # in't lo''$ Rupee Co't A+er #in# c n '!ooth out the ! rketK' up' nd down' nd reduce the ri'k of in+e'tin# in +ol tile ! rket'$ S!"tematic ithdra$al Plan: S"'te! tic Withdr w l 5l n on fi,ed nu!*er of unit' !onthl". 1u rterl" or

    The unit holder ! " 'et up

    'e!i3 nnu l or nnu l * 'i' to redee! PriceB-arnin+" Ratio:

    A**re+i ted ' 5JE R tio or 5JE$ So!eti!e' referred to ' the I!ultiple$I C lcul ted *" di+idin# the 'tockK' current price *" the co!p n"K' current nnu l e rnin#' per 'h re. u'u ll" fro! the l 't four 1u rter' &known ' the Tr ilin# 5JE R tio0. *ut 'o!eti!e' fro! the e'ti! te' of the e rnin#' e,pected in the ne,t four 1u rter' &the 5ro(ected 5JE r tio0. or fro! the 'u! of the l 't two ctu l 1u rter' nd the e'ti! te' of the ne,t two 1u rter'$ In nd of it'elf. the 5JE R tio tell' +er" little. *ut c n *e u'efull" co!p red to the 5JE R tio' of other co!p nie' in the ' !e indu'tr". or to the ! rket in #ener l. or to the co!p n"K' own hi'toric l 5JE R tio'. in order to deter!ine how !uch the ! rket i' currentl" willin# to p " for co!p n"K' e rnin#'. 'h re of the

    B2 MARC-( @API(A,ISA(I)N Mar%et capitaliEation: Stock -und' re often #rouped *" the 'i/e of the co!p nie' the" in+e't in *i#. '! ll or tin"$ 8" 'i/e we !e n known ' ! rket c pit li/ tion$
    6/

    co!p n"K' + lue on the 'tock

    ! rket9 the nu!*er of 'h re' it h ' out't ndin# !ultiplied *" the 'h re price$ Thi' i'

    8i# co!p nie' tend to *e le'' ri'k" th n '! ll co!p nie'$ 8ut '! ller co!p nie' c n often offer !ore #rowth potenti l$ The *e't ide i' pro* *l" to h +e !i, of fund' th t #i+e' n e,po'ure to l r#e3c p. !id'i/e nd '! ll co!p nie'$

    A fundK' ! rket c pit li/ tion will indic te whether the fund e!ph 'i/e' the 'tock' of *lue3chip co!p nie' with l r#e ! rket c pit li/ tion'. e!er#in# co!p nie' with '! ll c pit li/ tion'. or 'o!ethin# in *etween$

    a) ,ar+e @ap Fund": L r#e c p fund' in+e't their ''et' pri! ril" in co!p nie'. which h +e 'i/ *le ! rket c pit li/ tion$ Different fund hou'e' define WSi/ *leK differentl"$ Thi' i' u'u ll" !entioned in the f ct 'heet' for the in+e'torK' *enefit$ -or in't nce. in it' I5O &-r nklin -le,i C p0. Te!pleton defined l r#e c p' thre'hold were c te#ori/ed ' !idJ'! ll c p'$ In+e'tin# in l r#e c p' i' lower ri'k3lower return propo'ition &+i'3X3+i' !id c p 'tock'0. *ec u'e 'uch co!p nie' re u'u ll" widel" re'e rched nd infor! tion i' widel" + il *le$ L r#e3c p fund' return'$ E$#$9 Kot k C7. )D-C Top 677 -und. -r nklin Indi -und for in't nce. in+e't predo!in ntl" in l r#e c p'$ 8luechip -und. )S8C E1uit" re le'' +ol tile th n fund' th t in+e't in '! ller co!p nie'$ ='u ll". th t !e n' we c n e,pect '! ller return' *ut 't *le ' co!p nie' with ! rket c pit li/ tion in e,ce'' of R' ?> *n &R' ?.>77 crore'0$ Co!p nie' *elow thi'

    b) Mid @ap Fund": The'e fund' in+e't in co!p nie' th t h +e lower ! rket c pit li/ tion th n the l r#e c p'$ -or in't nce. Sund r ! Mutu l -und define' !id c p' ' 'tock' with ! rket c pit li/ tion of le'' th n R' ?E *n$ )owe+er. thi' le+el + rie' fro! fund hou'e to fund hou'e$ A' with l r#e c p'. 8SE &8SE Mid C p 6770 nd S:5 CNQ &S:5 CNQ Mid C p 6770 h +e de'i#ned their own indice' for !id c p 'tock'$

    0<

    In+e't!ent' in !id c p' in+e't!ent' in l r#e c p #r du te to return on hi' in+e't!ent$

    re

    ri'kier propo'ition

    ' co!p red to 'i#nific nt

    fund'$ In f ct.

    !id c p 'tock could well

    l r#e c p o+er the "e r' #i+in# the in+e'tor

    E$#$9 -r nklin Indi 5ri! -und. Kot k Mid3C p. M #nu! Glo* l -und. Sund r ! Select Mid C p fund re 'o!e e, !ple' of !id c p fund'. c) Small @ap Fund": S! ll c p fund' in+e't in co!p nie' with '! ller ! rket c pit li/ tion$ &Sund r ! ' 'tock' with ! rket SMILE0 3 Sund r ! Mutu l -und defined '! ll c p' con'ider *le ri'k$ S! ll c p co!p nie' in !o't c 'e' re (u't e+ol+in#$ A# in. ' with !id c p'. infor! tion on '! ll c p' i' not e 'il" re contendin# with nd !id c p'$ The +ol tilit" of the fund often depend' on the ##re''i+ene'' of the ! n #er$ A##re''i+e '! ll3c p ! n #er' will *u" hot #rowth nd technolo#" co!p nie'. t kin# hi#h ri'k' in hope' of hi#h rew rd'$ More con'er+ ti+e I+ lueI ! n #er' will look for co!p nie' th t h +e *een *e ten down te!por ril" *" the 'tock ! rket$ Currentl" thi' i' niche 'e#!ent ' there i' no fund in+e'tin# purel" in '! ll c p rel ti+el" unknown entit" here$ + il *le 'o the'e co!p nie' re under3re'e rched or ! "*e not re'e rched t ll$ So we )owe+er. the ri'k3return tr de3off i' !uch hi#her +i'3X3+i' l r#e c p'

    c pit li/ tion of le'' th n R' 6 *n$ in+e'tin# in '! ll c p fund' i' fr u#ht with

    'tock'$ Sund r ! SMILE i' pro* *l" the fir't '! ll c p fund of it' kind$ d) MultiBFle.i-@ap Fund": Gu't *out e+er" 'econd !utu l fund I5O the'e d "' i' dependin# on the #rowth opportunit"$ !ultiJfle,i c p fund$ The fund ! n #er h ' the ! nd te to 'hift cro'' ! rket c pit li/ tion'

    01

    Thi' i' #ener ll" dict ted *" the ! rket h ppenin#' i$e$ which 'ector i' dri+in# #rowth t #i+en ti!e or which ! rket 'e#!ent &! rket ceilin# on how f r the fund ! n #er c n #o in nd !iti# te ri'k'$ In ter!' of ri'k3return tr de3off. c pit li/ tion0 i' witne''in# the l te't r ll"$

    8ut #ener ll". thereK' rel ti+el" di+er'ified

    p rticul r ! rket 'e#!ent or 'ector$ Thi' help' in keepin# the portfolio the'e fund' re po'itioned *etween l r#e c p' nd !id c p'$ So!e !ulti c p fund' include 3 DS5 ML Opportunitie'. T t E1uit" Opportunitie' nd 5rincip l Re'ur#ent Indi -und$

    0)

    () IN/-S( IN M'('A, F'N1

    Step )ne - Identi%y the In*e"tment need": Our fin nci l #o l' will + r". * 'ed on the #e. life't"le. fin nci l independence. f !il" co!!it!ent'. nd le+el of inco!e nd e,pen'e' !on# ! n" other f ctor'$ Therefore. the fir't 'tep i' to ''e'' the need'$ We c n *e#in *" definin# the in+e't!ent o*(ecti+e' nd need'. which could *e re#ul r inco!e. *u"in# ho!e or fin nce weddin# or educ te children etc$

    Step ($o - C#oose t#e rig#t Mutual (und : The i!port nt thin# i' to choo'e the ri#ht !utu l fund 'che!e. which 'uit' our re1uire!ent'$ The offer docu!ent of the 'che!e tell' u' it' o*(ecti+e' e+ lu te *efore choo'in# nd pro+ide' 'upple!ent r" det il' like the tr ck re the tr ck record of the record of other 'che!e' ! n #ed *" the ' !e -und M n #er$ So!e f ctor' to p rticul r Mutu l -und perfor! nce of the fund o+er the l 't few "e r'$ Other f ctor' could *e the portfolio lloc tion. the di+idend "ield nd the de#ree of tr n'p renc" etc$ Step (hree 2 Sele"t t#e ideal mi3 o% S"#emes : In+e'tin# in (u't one Mutu l -und 'che!e ! " not !eet ll the in+e't!ent need'$ We ! " con'ider in+e'tin# in co!*in tion of 'che!e' to chie+e our 'pecific #o l'$ Step Four 2 Invest regularly: The *e't ppro ch i' to in+e't fi,ed !ount t

    'pecific inter+ l'. ' " e+er" !onth$ 8" in+e'tin#

    fi,ed 'u! e ch !onth. we *u"


    04

    fewer unit' when the price i' hi#her

    nd !ore unit' when the price i' low. thu'

    *rin#in# down the +er #e co't per unit$ Thi' i' c lled rupee co't +er #in# nd i' di'ciplined in+e't!ent 'tr te#" followed *" in+e'tor' ll o+er the world$ We c n l'o + il the '"'te! tic in+e't!ent pl n f cilit" offered *" ! n" open3end fund'$ Step Fi*e- Start early: It i' de'ir *le to 't rt in+e'tin# e rl" nd 'tick to re#ul r

    in+e't!ent pl n$ If we 't rt now. we will ! ke !ore th n if we w it nd in+e't l ter$ The power of co!poundin# let' u' e rn inco!e on inco!e nd our !one" !ultiplie' t co!pounded r te of return$

    Step Si. 2 T#e %inal ste&: -in ll" we need to fill in the pplic tion for!' of + riou' !utu l fund 'che!e' nd 't rt in+e'tin#$ We ! " re p the rew rd' in the "e r' to co!e$ Mutu l -und' re 'uit *le for e+er" kind of in+e'tor 3 whether 't rtin# or retirin#. con'er+ ti+e or ri'k t kin#. #rowth oriented or inco!e 'eekin#$ c reer

    03

    @)MPARA(I/- ANA,2SIS )F M'('A, F'N1S B-(A A 8et i' !e 'ure of ri'k th t. when pplied to in+e't!ent portfolio'. pro+ide' !utu l fundK' +ol tilit" with th t of u'eful 't ti'tic l infor! tion$ It co!p re' hi#hl" correl ted to the *ench! rk inde,$ A fund with fund with *et #re ter th n ? i' con'idered !ore +ol tile th n the ! rket2 nd *et le'' th n ? !e n' le'' +ol tile$

    *ench! rk$ If the *et of the 'tock i' ?. it !e n' th t the return' in the 'tock re

    @)MPARA(I/- ANA,2SIS

    01F@ '(I 8ETA 7$A? =>> 7$A?

    ()PPR' ?R) (0 7$AE

    I@I@IR-,IAN@/ISI)N 7$EA

    Comparison Chart
    0.9 0.85 BETA 0.8 0.75 0.7 UTI HDFC CAPITAL BUILDER Funds RELIANCE GROWTH BETA

    04

    Mo't ! in'tre ! e1uit" fund' h +e 8et ' in the r n#e of $E> to ?$7> &f irl" clo'e to the ?$77 8et repre'ented *" the ! rket in the ##re# te0$ E'peci ll" con'er+ ti+e 'tock fund' ! " re#i'ter 8et ' ' low ' $D>. !e nin# th t in 3?7@ ! rket decline. their + lue' !i#ht *e e,pected to f ll 3D$>@$ A##re''i+e fund' with 8et ' of ?$6> !i#ht 'ee their + lue' f ll *" 3?6$>@$ We c n 'ee th t the *et ' of ne rl" ll the fund' re 'i!il r p rt fro! the *et of 5ru3ICICI Growth. which h ' fund i' +er" +ol tile$ +er" hi#h *et . which i!plie' th t the

    An i!port nt point to *e con'idered i' th t with different o*(ecti+e'. the !id3 c p nd l r#e c p *et ' l'o different$ L r#e c p *et ' re !ore tow rd' ! rket *et which i!plie' th t the'e fund' h +e *een !ore 't *le unlike !id c p *et ' which re !ore +ol tile

    A,P0A Alph i' fin nci l ter! de'cri*in# th t p rt of n in+e'torK' return th t i' due to the whole$ deeper per'pecti+e on the perfor! nce of e1uit" 'che!e' whole. nd how !uch due to lph 0 'kill' of the in+e't!ent ! n #er. ' di'tinct fro! the return of the ! rket ' Alph c n pro+ide to

    !utu l fund in+e'tor$ While n l"/in# perfor! nce. we would like to know how *ilit" to 'elect 'tock'$ H lue Added *" -und M n #er &or

    !uch of the return w ' ttri*ut *le to the ! rket ' the ! n #erK'

    indic te' the return th t i' not ttri*ut *le to the ! rket. or in other word' the dded + lue the ! n #er chie+ed o+er nd *o+e the re'ult of the ! rket$

    06

    @)MPARA(I/- ANA,2SIS: A fund ! n #er who reduce' ri'k' *" *ookin# profit' h ' Then. de'pite l'o to *e c reful in rein+e'tin#$ If the rein+e'tin# i' * dl" ! n #ed. the return' ! " not *e 'uperior$ lower *et . the perfor! nce ! " *e fl t$ The !e 'ure WAlph K fund ! n #er$ 01F@ '(I AL5) A ?$6E ?$DC 7$B> 6$6D =>> ()PPR' ?R) (0 I@I@IR-,IAN@/ISI)N indic te' the + lue dded *"

    Comparison Chart
    3 2.5 ALPHA 2 1.5 1 0.5 0 UTI HDFC CAPITAL BUILDER Funds RELIANCE GROWTH ALPHA

    Alph c n *e 'een '

    !e 'ure of

    fund ! n #erK' perfor! nce$ Thi' i'

    wh t the fund h ' e rned o+er nd *o+e &or under0 wh t it w ' e,pected to e rn$ Thu'. thi' i' the + lue in+e't!ent deci'ion'.

    dded &or 'u*tr cted0 *" the fund ! n #erK'

    In the l r#e c p fund'. it c n *e 'ee th t the lph of the Reli nce Hi'ion i' hi#he't i$e 6$6D$ Thi' c n *e ttri*uted to the hi#h churnin# of fund' done *" the fund ! n #er$ The lowe't lph i' of 5ru3ICICI Growth *ein# 7$B>2 !e nwhile the *et of

    thi' fund i' the ! ,i!u!$


    00

    A# in. in the !id c p fund' l'o the lph of reli nce #rowth i' the ! ,i!u! which c n *e ttri*uted to the *o+e re 'on'$ Another trend i' th t o+er ll the lph of !id3c p fund' i' hi#her ' co!p red to l r#e c p fund'$ One re 'on could l'o *e th t in thi' ti!e period when the 'tud" w ' done. the !id c p fund' were perfor!in# 1uite well ' co!p red to l r#e c p fund'$

    S-@()R A,,)@A(I)N The di+i'ion of n in+e't!ent portfolio !on# ! (or 'ector' u'u ll" to di+er'if" the ri'k$ In thi' conte,t. two ppro che' c n *e followed9 To&2do,n a&&roa"#- )erein fir'tl" the 'ector' there fter3'tron# co!p nie' E1uit" $ottom2u& a&&roa"#)erein the in+e't!ent' re done in fund !ent ll" 'ound co!p nie'$ E$#$ -r nklin Indi 8luechip$

    re cho'en.

    nd

    re cho'en in the'e 'ector'$ E$#$ )S8C

    P)R(F),I) @)N@-N(RA(I)N: Thi' refer' to the concentr tion of the lloc tion in top few 'ector'$ Dependin# on the o*(ecti+e of the !utu l fund. the fund could *e concentr ted or di+er'ified$ )D-C E1uit" -und i' concentr ted fund$ Me nwhile Reli nce Growth i' +er" di+er'ified fund +er"

    -und' e,po'ure to different kind' of 'ector' i' nother p r !eter on which the different !utu l fund' c n *e co!p red$ Mo't fund' h +e de1u te e,po'ure to technolo#" 'tock'$ L tel" !o't fund' h +e incre 'ed their e,po'ure to * nkin# 'ector 'tock'$ )owe+er reli nce h ' +er" different 'tock lloc tion in+e'tin# in uto!o*ile nd he +" en#ineerin# 'ector'$

    S(AN1AR1 1-/IA(I)N The tot l ri'k of #i+en fund i' !e 'ured in ter!' of 't nd rd de+i tion of return' of !e 'ure of 'c tterin# of the + lue' *out the the fund$ St nd rd De+i tion i'

    +er #e &!e n0 + lue$ It tell' u' how !uch the + lue' h +e de+i ted fro! the !e n of the + lue'$ It i' c lcul ted *" u'in# return' of the 'che!e i$e$ the Net A''et H lue

    09

    &NAH0. nd i' return$

    !e 'ure of the di'per'ion of the 'che!eK' return round it' +er #e

    Comparison Chart
    8 7.8 7.6 7.4 7.2 7 6.8 6.6 6.4 6.2 6 UTI HDFC CAPITAL BUILDER Funds RELIANCE GROWTH

    S>D.

    STANDARD DE IATION

    @)MPARA(I/- ANA,2SIS When u'ed in rel tion to !utu l fund'. it tell' *out the +ol tilit" of the 'che!e$ The hi#her i' the + lue. the !ore +ol tile re the return' nd +ice +er' $

    01F@ '(I STANDAR D DEHIATIO N B$A? D$6D =>>

    ()PPR' ?R) (0

    I@I@IR-,IAN@/ISI)N

    D$C>

    D$FF

    Mid C p -und'

    The 't nd rd de+i tion i' !ore in !id c p fund'$ Thi' 'how' th t !id c p fund' re !ore +ol tile ' co!p red to l r#e c p fund'$ In the l r#e c p fund' the hi#he't 't nd rd de+i tion i' of reli nce +i'ion. reli nce +i'ion f ll' in the c te#or" of hi#h ri'k nd hi#h return$
    0$

    Me nwhile the 't nd rd de+i tion of the -r nklin Indi 8lue chip i' the lowe't. thi' fund i' con'idered ' one of the !o't 't *le return' #i+in# fund$ )owe+er in the !id c p fund the hi#he't 't nd rd de+i tion i' of -r nklin Indi 5ri! $ Thi' i' *ec u'e -r nklin Indi pri! h ' l tel" ch n#ed it' 'ector l co!po'ition. tr"in# to ! ke it ' n ##re''i+e fund$

    S0ARP- RA(I) Sh rpe r tio. worked *" No*el L ure te 8ill Sh rpe. trie' to 1u ntif" how perfor!' rel ti+e to the ri'k it t ke'$ It i' nd *o+e ri'k free r te of return de+i tion0$ S"!*olic ll" it i' written '9
    SI =

    fund

    r tio of return' #ener ted *" the fund o+er ''oci ted with it &'t nd rd

    nd the tot l ri'k

    ( Ri Rf )

    Where. SIR Sh rpe Inde, Ri R Return on the fund Rf R ri'k free r te of return &e$#$ A7 d " T38ill0

    R St nd rd De+i tion

    Comparison Chart
    0.6 0.58 0.56 0.54 0.52 0.5 0.48 0.46 UTI HDFC CAPITAL BUILDER Funds RELIANCE GROWTH S.R.

    SHARPE RATIO

    0/

    9<

    @hapter @)N@,'SI)N R-@)MM-N1A(I)N @)N@,'SI)N


    Ret il In+e'tor' prefer to in+e't in de*t3* 'ed fund' when the" in+e't for 'hort period' nd re lookin# for 'te d" return'$ On the contr r". when the" in+e't for lon# period'. the" prefer to #o for e1uit" * 'ed fund' ' it i' 'een th t in the lon# period. e1uit" fund' out3perfor! de*t fund'$ Thi' !one" i' either fro! their c pit l # in' or for 'o!e 'pecific purpo'e in the future like their child4' educ tion. ! rri #e. purch 'e of hou'e etc$ 8u'ine'' In+e'tor' in+e't c pit l # in' ' follow' Y ?$ S " the NAH per unit of the Mutu l -und i' R'$ 67$77 t ti!e of purch 'e$ 6$ The *u'ine'' *u"' the Mutu l -und unit' t thi' price nd di+idend' re decl red ' " R'$ F$77 per unit$ C$ Then fter the cool off period when the Mutu l -und open'. the NAH per unit i' R'$ ?B$77 per unit &R'$ 67$77 Y R'$ F$77 di+idend decl red0$ F$ The *u'ine'' then 'ell' off the unit' t R'$ ?B$77 per unit nd cl i!' c pit l loo'e' to the tune of R'$ F$77 per unit. which c n *e u'ed *" the! to write off their c pit l profit'$ >$ Thi' ctu ll" i' not c pit l lo'' ' th t !ount h ' lre d" *een rei!*ur'ed to the unit holder in ter!' of di+idend'$ In Indi . the trend i' th t in+e'tor' in+e't when there i' ! rket *oo! in the 'tock *'olutel" lot in the end of Gune when Mutu l -und' re clo'e to

    decl rin# di+idend'$ Thi' i' *ec u'e thi' #et' the! the *enefit of writin# off their

    nd withdr w their holdin#' in ti!e' of 'lu!p$ Thi' i'

    contr r" to how the '"'te! work' *ro d ' there in+e't!ent' t ke pl ce in the 'lu!p period when #re ter unit' c n *e purch 'ed with ' !e !ount of !one"$ Withdr w l' re corre'pondin#l" done in *oo! ti!e' ' ! ,i!u!

    91

    return i' chie+ed$ Thi' i' the ri#ht 'tr te#" nd Mutu l -und co!p nie' re tr"in# to cre te thi' w rene'' !on# con'u!er'$ The outlook for the Mutu l -und Indu'tr" ' predicted *" the repre'ent ti+e' of the co!p nie' th t I +i'ited i' +er" *ri#ht$ The" ll e,pect the ! rket to #o up *" Diw li &Indi n fe'ti+ l0 w rene'' incre 'e w rene'' nd New Ne r' nd l'o e,pect con'u!er nd intere't to i!pro+e$ Effort' re *ein# ! de *" the! to whole$ Al'o l r#e

    nd 'er+ice' offered *" the!$ All thi' would re'ult in

    ! (or incre 'e in their collection' nd of the indu'tr" '

    nu!*er of new co!p nie' nd 'che!e' re 'oon #oin# to *e l unched which will incre 'e the + riet" for con'u!er' nd l'o i!pro+e the 1u lit" of 'er+ice' offered due to the incre 'e in co!petition$

    94

    @)N@-P( )F FINAN@IA, P,ANNIN?


    Financial plannin+ i" an e.erci"e aimed to en"ure a*ailabilit! o& ri+ht amount o& mone! at the ri+ht time to meet the indi*idualF" &inancial +oal".
    An in+e'tor. dependin# on the #e. ri'k t kin# *ilit" nd ti!e hori/on. 'hould

    ccordin#l" put hi'Jher !one" in different ''et cl ''e' in the proportion th t 'uit' their uni1ue need' nd re1uire!ent' the *e't$
    With the co!ple,it" nd d"n !i'! of the fin nci l ! rket' incre 'in# with the

    p '' #e of ti!e. there i'

    ! ''i+e infor! tion o+erlo d for ll in+e'tor'$ 8i#

    in+e'tor' like -II' h +e the ti!e nd e,perti'e to ! n #e 'uch ri'k'$ 8ut for ret il in+e'tor. thi' c n *e hi#hl" inti!id tin#$ It i' *e't to 'cert in oneK' own uni1ue re1uire!ent' * 'ed on the p r !eter' di'cu''ed *o+e. dependin# on which one c n dr w out n in+e't!ent pl n$

    93

    Ri"% Pro&ilin+:
    In thi' 'ection we n l"/ed the cu'to!er4' in+e't!ent o*(ecti+e' nd preferred

    in+e't!ent 't"le$ Thi' include'9 ?$ To under't nd the * 'ic o*(ecti+e' of in+e't!ent. the ti!e hori/on &the ti!e period for which the cu'to!er w nt' to in+e't0 6$ To e,plore the toler nce to +ol tilit" ''oci ted with + riou' fin nci l ''et' C$ To under't nd the ttitude of the cu'to!er to different ri'k le+el' in + riou' ! rket condition'$ &Ri'k ppetite03 A##re''i+e. Moder tel" ##re''i+e. Con'er+ ti+e$ -in ll" fter n l"/in# the *o+e p r !eter' with the help of the per'on l fin nci l re+iew we 1u ntified the *ilit" of the cu'to!er to t ke the in+e't!ent ri'k ''oci ted with the + riou' fin nci l ''et'$ After thi' we ! de 63C du!!" portfolio' 'u##e'tin# 'uit *le portfolio !i,$

    94

    Recommendation":
    ?0 A few re'pondent' due to confidenti lit" con'tr int' did not di'clo'e the +er #e in+e't!ent ! de$ 60 The future in+e't!ent in !utu l fund' depend' he +il" on the + il *ilit" of fund'$ C0 It i' 'een fro! the n l"'i' th t !o't of the people in Indi 'pecific ll" 5une h +e no ide of Mutu l -und'$ Thi' 'howed the low w rene'' le+el !on# the people of 5une *out the Mutu l -und' therefore I recommend th t there i' need for nd '! ll in+e'tor' who prefer * nk' for their in+e't!ent' nd *etter ! rketin# of Mutu l -und' nd 'pecific ll" t r#et in+e'tor' who in+e't in 'tock ! rket' cre te w rene'' !on#'t the! *out in+e'tin# in Mutu l -und'$ F0 It i' reco!!ended th t the A''et M n #e!ent Co!p nie' &AMC0 !ore 'pecific ll" =TI 'hould co!e up with new Mutu l -und 'che!e' which focu' on "ecurit! o& mone!3 better rate o& return3 li6uidit!3 pro&itabilit! $ The" 'hould concentr te !ore on *uildin# up in+e'tor4' confidence. ' it i' 'een fro! the n l"'i' th t !o't of the in+e'tor' re not confident of the ' fet" nd 'ecurit" of their in+e't!ent' in Mutu l -und' e'peci ll" fter the =TI Sc ! in Indi $ >0 It i' 'tron#l" reco!!ended th t A''et M n #e!ent Co!p nie' &M- Co!p nie'0 'pecific ll" =TI pro+ide reli *le nd !ore true nd tr n'p rent infor! tion to the in+e'tor' ' the in+e'tor i' re d" to in+e't in Mutu l -und' onl" if the" re #i+en !ore reli *le infor! tion$ It i' co!!it!ent with the in+e'tor'$ B0 All the people inter+iewed e,pected r te of return of ?D3?E@ on their in+e't!ent' in Mutu l -und' therefore if the A''et M n #e!ent Co!p nie' &AMC0 !ore 'pecific ll" =TI re *le to pro+ide th t return the" c n ttr ct !ore in+e'tor'$ D0 In the ne r future. l r#e nu!*er of new co!p nie' nd 'che!e' re 'oon #oin# to *e l unched which will incre 'e the + riet" for in+e'tor nd will le d to incre 'e in co!petition$ in the indu'tr" nd Thi' 'tre''e' the need to i!pro+e the 1u lit" of 'er+ice' offered nd i!pro+e indi+idu l fund perfor! nce$ E0 The c pit l ! rket h ' *een #rowin# *" le p' nd *ound'$ Thu' the 'tock ! rket in Indi i' on the ri#ht tr ck nd there will *e ! (or i!pro+e!ent' in the ne r
    96

    l'o reco!!ended th t A''et M n #e!ent rel tion'hip of tru't nd

    Co!p nie' &M- Co!p nie'0 focu' on *uildin#

    future Thi' e,p n'ion will ct ' n i!pedi!ent to the '! ll in+e'tor' who either h ' the option to pl " the ! rket or to h +e the knowled#e to keep p ce with the corpor te infor! tion of thou' nd' of co!p nie'$ Their !utu l fund' will for! f +or *le ltern ti+e pro+ided there i' tr n'p renc". reli *ilit" nd uthenticit" in their functionin#$

    90

    Re&erence"
    ?0 Mr$ A!it Ch dh 60 Mr$ Ankit Gupt -in nce )e d &DQN Tr din# &I0 5+t$ Ltd0$ Student of Intern tion l Colle#e of -in nci l 5l nnin# &Securit" An l"'i'0$ C0 Mr$ Deep k Sh r! Student of Intern tion l Colle#e of -in nci l 5l nnin# &Securit" An l"'i'0$ F0 Mr$ Sunil Ku! r Student of Intern tion l Colle#e of -in nci l 5l nnin# &Securit" An l"'i'0$ >0 Mr$ De+ender Ar*itr #eur &C5R C pit l Ser+ice' Ltd$0

    99

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