A PROJECT REPORT ON

INVESTORS PERCEPTION TOWARDS MUTUAL FUND FOR GROWTH

OF

A PROJECT REPORT SUBMITTED TO

INDIRA INSTITUTE OF MANAGEMENT, PUNE

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE COURSE OF

(MMM) MASTER OF MARKETING MANAGEMENT (UNIVERSITY OF PUNE)

SUBMITTED BY: SUBMITTED TO:
PROF. SANTOSH PULLEWAR (INTERNAL GUIDE)

SALMAN DANISH (2009 2011) IIMP

CERTIFICATE
This is to certify that Mr. SALMAN DANISH, student of Master of Marketing Management [MMM] in Indira Institute of Management, Pune has successfully completed his Summer Training under DSP Black Rock Investment Managers Pvt. Ltd. under the guidance of Mr. SANTOSH PULLEWAR (Internal Project Guide).

Project Guide, Mr. SANTOSH PULLEWAR

(Professor)
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DECLARATION I hereby declare to all my concerned that the project report compiled in the following pages is based on an original & primary work conducted by me & no other report has been duplicated from any other report. This report will submitted to Indira Institute of Management, Pune & Pune University for the award of Master Degree certificates.

Place: Varanasi

SALMAN DANISH

ACKNOWLEDGEMENT
Firstly I must thank the DSP BLACKROCK INVESTMENT

MANAGERS Pvt. Ltd. Co., who give me an opportunity and instrument to work on this project. This project could not have been completed without the support of my seniors and friends. I owe my heartiest thanks to my course co-ordinator Mrs. Poornima Tapas, my internal project guide Mr. SANTOSH PULLEWAR and other faculty members who have suggested me to work with this project. And a tone of thanks to Mr. Gurmit Singh Khanna (Assistant Sales Manager) under whose guidance I was successfully able to complete this project. I am also thankful to my team members for their co-operation during the project period. Special thanks to Mr. Manish Sinha (Assistant Vice-President & Sales head of U.P) who has provided the opportunity to work with this company and get experience of AMC (Asset Management Co.)

SALMAN DANISH

EXECUTIVE SUMMARY

A Mutual Fund is a pool of money or collection of stocks, bonds, or other securities owned by a group of investors and managed by a fund managers professional investment company. For an individual investor to have a diversified portfolio is difficult. But he can approach to such company and can invest into shares. DSP Black Rock Mutual funds perform a crucial task as efficient alligators of resources in such a transitional period. The process of liberalization and restructuring of the Indian economy has further created necessity for efficient allocation of resources. In this process of development, mutual funds have emerged as strong financial intermediaries and are playing an important role in bringing stability to the financial system and efficiency to the resource allocation process. Mutual funds have become very popular since they make individual investors to invest in equity and debt securities easy. When investors invest a particular amount in mutual funds, he becomes the unit holder of corresponding units. In turn, mutual funds invest unit holders money in stocks, bonds or other securities that earn interest or dividend. This money is distributed to unit holders. If the fund gets money by selling some stocks at higher price the unit holders also are liable to get capital gains.

There are some points which is to be observed by authorized person of sector:1- Awareness level of the Mutual Fund industry should be increased.
2- Awareness level of the DSP Black Rock Mutual Fund should also be increased to

increase the number of investors.

3- The company should try to enter in banking sector to get the desired investors easily.

This study focused on Varanasi region. In this I have covered almost all the places of Varanasi, to empanelment of more and more number of ARN (Amfi Registration No.) holders with DSP Black Rock Pvt.Ltd., to know about the perception in the mind of investors for this Co. and convinced investors for SIP (Systematic Investment Plan) of DSP Black Rock MF. Being constraints by data availability (both primary and secondary) and time and improper response from the respondents I have covered the regions during my summer training programme viz: Varanasi. This work is carried out through self-administered questionnaires. The questions included were opening ended, dichotomous and offered multiple choices.

INDEX
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
INTRODUCTION INDUSTRY PROFILE COMPANY & PRODUCT PROFILE REVIEW OBJECTIVE & SCOPE RESEARCH METHODOLOGY DATA ANALYSIS OBSERVATION & FINDINGS CONCLUSIONS SUGGESTIONS/RECOMMENDATIONS

CONTENT

Page No.

11.

REFERENCES

CHAPTER - 1

INTRODUCTION

INTRODUCTION

Introduction of Mutual Fund

As you probably know, mutual funds have become extremely popular over the last 20 years. What was once just another obscures financial instrument is now a part of our daily lives. More 80 million peoples, or one half of the households in America, invest in mutual funds. That means that, in the United State alone, trillions of dollars are invested in mutual funds. In fact, too many people, investing beans baying mutual funds. After all, its common knowledge that investing in mutual funds is (or at least should be) better than simply letting your cash waste away in saving account, but, for most people, that were the understanding of fund ends. It doesnt help the mutual fund sales people speak a strange language that is interspersed with jargon that money investors dont understand. Originally, mutual funds were heralded as a way. For a little guy to get a piece of the market. Instead of spending all your free time buried in the financial pages of the wall street Journal, all you had to do was buy a mutual fund and youd set a way to financial freedom. As you might have guessed, its not that easy. Mutual Funds are an excellent idea in theory, but in reality, that have not always delivered. Not all mutual funds are created equal, and investing in mutual isnt as easy as throwing your money at the first sale person who solicits your business. A mutual fund is trust that pools the saving of investors who share a common financial goal. The money is collected as invested by the fund managers in different types of securities depending upon the objective of the scheme. These could range from share to debentures to money market instruments. The income earned through these investments and the capital appreciation realized by the scheme is shared by its unit holders in proportion to the number of units owned by them (pro rate). Thus the mutual fund is most suitable investment for the
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common man as it offers an opportunity to invest in a diversified, professionally managed portfolio at a relatively low cost. Anybody with an investable surplus of as little as a few thousand rupees can invest in mutual funds. Each mutual fund scheme has a defined objective and strategy. A mutual fund is ideal investment vehicle for todays and modern financial scenario. Markets for equity shares, bonds and other fixed income instruments, real estate, derivatives and other assets have become mature and information driven. Price changes in these assets are driven by global events occurring in faraway places. A typical individual is these is unlike to have the knowledge, skills, inclination and time to keep track of events, understanding their implications and act speedily. An individual also finds it difficult to keep track of ownership of his assets, investments, brokerage dues and bank transactions etc.

A mutual fund is answer to all these situations. It appoints professionally qualified and experienced staff that managed each of these functions on a full time basis. The large pool of money collected in the fund allows it to hire such staff at a very low cost to each investor. In effect, the mutual fund vehicle exploits economies of scale in all three areas Research, investments and transaction processing. While the concepts of individual coming together to invest money collectively are not new, the mutual fund in its present from is a 20th century phenomenon. In fact, mutual funds gained popularity only after the Second World War. Globally, there are thousands of farms offering tens of thousands of mutual funds with different investment objectives. Today, mutual funds, collectively manage almost as much as or more money as compared to banks. A draft offer document is to be prepared at the time of launching the fund. Typically, it prosperities the investment objectives of the funds, the risk associated, the costs involved in the process and the broad rules for a entry into an exit from the fund and other areas of operation. In India as in most countries, these sponsors need approval from a regulator, SEBI (Security Exchange Board of India) in our case. SEBI looks at track records of the sponsor and its financial strength in granting approval to the fund from commencing operations.

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A sponsors than higher as assets management company to invest the funds according to the investment objective. It also hires another entity to be custodian of assets of the fund and perhaps a third one to handle registry work for the unit holders (subscribers) of the fund.

Definition of Mutual fund

Mutual Fund are popular among all income levels. With a Mutual Fund, we get a diversified basket of stocks managed by a professional

- Berbara Stanny. Author of prince charming isnt coming: How women smart about money

A Mutual Fund is a company that brings together money for many people and invests it in stocks, bonds or other assets. The combination holding of stocks, bonds or other assets the fund owns are known as its portfolio. Each investor in the fund owns shares, which represent a part of these holdings

The U.S. Securities and Exchange Commission.

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Mutual Fund:
1- A pool of money, collected from investors, invested according to certain investment objectives. 2- Ownership in hands of investors whove pooled in their funds. 3- Managed by a team of investment professionals. 4- The pool of funds invested in portfolio of marketable investments. 5- Investors share denominated by Units that have a Net Asset Value (NAV) which changes every day. 6- The portfolio is created according to stated investment objectives. 7- Investors make money through Capital appreciation and Income distribution.
A mutual Fund is nothing more than a collection of stocks and/or bonds. You can think mutual fund as a company that brings together a group of people and invests their money in stocks. Bonds and other securities. Each investor owns shares, which represents the portion of the holdings of the fund.

You can make money from mutual fund in three ways:

1) Income is earned from dividends on stock and interest on bonds. A fund pays out nearly all of income it receives over the year to fund owners in the form of a distribution. 2) If the funds shell securities that have increased in price, the fund has a capital gain. Most funds also pass on these gains to investors in a distribution. 3) If fund holding increase in price but are not sold by the fund manager, the funds shares increase in price. You can than shell your mutual fund shares for a profit.

Funds will also usually give you a choice either to receive a check for distributions or to reinvest the earnings and get more shares. 12

Objectives of Mutual Fund

To provide an opportunity for longer income group to acquire without much difficult assets in the form of shares.

To cater mainly the need by individual investors whose means are small?

To manage investors portfolio in manner that provide regular income, growth, safety, liquidity and diversification opportunities.

Concepts of Mutual Fund

Mutual fund are Essen tidally investment vehicles where people with similar investment objective come together to pool their money and invest accordingly. Each unit of any schemes represents the proportion of pool owned by the unit holder (investor). Appreciation or reduction of value of investments is reflected in net assets value (NAV) of the concerned scheme, which is declared by the fund from time to time. Mutual Fund scheme are managed by respective Asset Management Companies (AMC). Different business groups/ financial institutions/ banks have sponsored these AMCs, either alone in collaboration with reputed international firms. Several international funds like Alliance and Templeton are also independent in India. Many more international Mutual Fund giants are expected to come into Indian markets in the near future. Mutual fund invests according to the underlying investment objective as spaced at the time of launching a scheme. Equity funds, debt funds, gilt funds and many others cater to the different need of the investor. The availability of these options makes them good options. While equity fund can be risk as a stock market themselves, debt fund offer the kind of security that is aimed for at a time of making investment. Money market funds offer the
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liquidity that is desired by big investors who is park surplus funds for very short term periods. Balanced funds cater to the investors having appetite foe a risk greater than the debt funds but less than the equity funds. The only pertinent factor here is that the fund has to be selected keeping the risk profile of the investor is mind because the products have different risk associated with them. Mutual fund is the most suitable investment for the common man as it offers an opportunity to invest in diversified, professionally managed portfolio at a relatively low cost. The small saving all the investors are put together to increase the buying power And higher a professional manager to invest the monitor the money. Anybody with an invest able surplus of as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy.

History of Mutual Fund:

In 1774, a Dutch merchant invited subscriptions from investors to set up an investment trust by the name of Eendragt Maakt Magt (translated into English, it means, Unity Creates Strength), with the objective of providing diversification at low cost to small investors. Its success caught on, and more investment trust were launched, with verbose and quirky names that when translated read profitable and prudent or small maters grow by consent. The foreign and colonial Govt. trust, formed in London in 1868, promised start the investor of modest means the same advantages as the large capitalist by spreading the investment over a number of stock. When three Boston securities executives pooled their money together in 1924 to create the first mutual fund, they had no idea how popular mutual funds would become. The idea of pooling money together for investing purposes started in Europe in the mid-1800s. The first pooled fund in the U.S. was created in 1893 for the faculty and staff of Harvard University.
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On March 21st, 1924 the first official mutual fund was born. It was called the Massachusetts Investors Trust. After one year, the Massachusetts Investors Trust grew from $50,000 in assets in 1924 to $392,000 in assets (with around 200 shareholders). In contrast, there are over 10,000 mutual funds in the U.S. today totaling around $7 trillion (with approximately 83 million individual investors) according to the Investment Company Institute.

The stock market crash of 1929 slowed the growth of mutual funds. In response to the stock market crash, Congress passed the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws require that a fund be registered with the SEC and provide prospective investors with a prospectus. The SEC (U.S. Securities and Exchange Commission) helped create the Investment Company Act of 1940 which provides the guidelines that all funds must comply with today.

With renewed confidence in the stock market, mutual funds began to blossom. By the end of the 1960s there were around 270 funds with $48 billion in assets. In 1976, John C. Bogle opened the first retail index fund called the First Index Investment Trust. It is now called the Vanguard 500 Index fund and in November of 2000 it became the largest mutual fund ever with $100 billion in assets.

One of the largest contributors of mutual fund growth was Individual Retirement Account (IRA) provisions made in 1981, allowing individuals (including those already in corporate

15

pension plans) to contribute $2,000 a year. Mutual funds are now popular in employersponsored defined contribution retirement plans (401k), IRAs. As of October 2007, there are 8,015 mutual funds that belong to the Investment Company Institute (ICI), a national trade association of investment companies in the United States, with combined assets of , $12.356 trillion.

History of Mutual Fund in India:

The mutual fund revolution sweeping developed nations nearly bypassed India, which was then a young nation that had decided to rely on the state for economic development. The Government muzzled private participation in the financial sector and at the same time, it showed a sense of inertia and a lack of imagination in developing viable investment option for households. With the private sector marginalized by the state in the economic sphere, the stock market was anything but hip and happening, which obviated the need for such investment vehicle in the first place. Government initiatives were few and far between.

From public control: One such rare initiative gave birth to mutual fund industry in India.
The foundation for mutual fund operation in India was laid by the Parliament in 1963 with the enactment of the Unit Trust of India Act. The then finance minister Mr. T.T. Krishna machari, who initiated the act, made it clear to the Parliament that UTI would provide an opportunity for the middle and lower income groups to acquire without much difficulty, property in the form of share, this initiation is intended to cater mainly to the needs of the individual investors whose means are small. With this mission, UTI came out its maiden fund an open end one in 1964.

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CHAPTER - 2

INDUSTRY/SECTOR PROFILE

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ABOUT INDUSTRY
The mutual fund industry in India in a small way with the UTI Act creating what was effectively a small savings division within the RBI. Over a period of 25 years this grew fairly successfully and gave investors a good return, and therefore in 1989, as the next logical step, public sector banks and financial institutions were allowed to float mutual funds and their success emboldened the government to allow the private sector to foray into this area. The initial years of the industry also saw the emerging years of the Indian equity market, when a number of mistakes were made and hence the mutual fund schemes, which invested in lesser known stocks and at very high levels, became loss leaders for retail investors, From those days to today the retail investor, for whom the mutual fund is actually intended, has not yet returned to the industry in a big way. But to be fair, the industry too has focused on bringing in the large investor, so that it can create a significant base corpus, which can make the retail investor feel more secure. The mutual fund industry in India has, so far, gone through many major phases. The following are those important four phases. The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank of India. The history of mutual funds in India can be broadly divided into four distinct phases:-

First Phase 1964-87:

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

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

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

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

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year
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in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993.The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs. 44,541 crores of assets under management was way ahead of other mutual funds.

Fourth Phase: (Since February 2003)

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation
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of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes. The latest phase in the industry's evolution began with the bifurcation of UTI. The Indian mutual fund industry has grown by about 4.2 times from 1993 (Rs. 470 billion) to 2005 (Rs. 1992 billion) in terms of AUM. The private sector was allowed entry to set up asset management companies in 1993. There was a brief period of five years during which the asset Growth was slow. The AUM for the mutual fund industry started to grow rapidly after 1998. Between 1998 and 2005 the AUM of the sector excluding UTI grew by over 15 times from Rs.114 billion in 1998 to Rs.1738 billion as at 2005. Though India is a minor player in the global mutual funds industry, its AUM as a proportion of the global AUM has steadily increased, doubling from 1999 levels.

Latest facts of the Mutual Fund Industry in India:

1- 100% growth in the last 6 years. 2- By end of February 2006, Indian mutual fund industry reached more than Rs 200000 crore. It is estimated that by 2010 March-end, the total assets of all scheduled commercial banks should be Rs 40,90,000 crore. 3- Numbers of foreign AMCs are in the queue to enter the Indian markets.

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4- Our saving rate is over 23%, highest in the world. Only channelizing these savings in mutual funds sector is required. 5- We have approximately 29 mutual funds which is much less than US having more than 800. There is a big scope for expansion. 6- B and 'C' class cities are growing rapidly. Today most of the mutual funds are concentrating on the 'A' class cities. Soon they will find scope in the growing cities. 7- Mutual fund can penetrate rural like the Indian insurance industry with simple and limited products. 8- SEBI allowing the MF's to launch commodity mutual funds. 9- Emphasis on better corporate governance. 10- Trying to curb the late trading practices.

Mutual Fund Operation Flow Chart

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GROWTH IN ASSETS UNDER MANAGEMENT

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ORGANIZATIONAL STRUCTURE OF MUTUAL FUND

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ADVANTAGES OF MUTUAL FUNDS

Professional Management
You avail of the services of experienced and skilled professionals who are backed by a dedicated investment research team which analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme.
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Diversification
Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks declare at the same time and in the same proportion. You achieve this diversification through a Mutual Fund with far less money than you can do on your own.

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

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

Low Costs
Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits of scale in brokerage, custodial and other fees translate into lower costs for investors.

Liquidity
In open-ended schemes, you can get your money back promptly at net asset value related prices from the Mutual Fund itself. With close-ended schemes, you can sell your units on a stock exchange at the prevailing market price or avail of the facility of direct repurchase at NAV related prices which some close-ended and interval schemes offer you periodically.

Transparency
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You get regular information on the value of your investment in addition to disclosure on the specific investments made by your scheme, the proportion invested in each class of assets and the fund manager's investment strategy and outlook.

Flexibility
Through features such as regular investment plans, regular withdrawal plans and dividend reinvestment plans, you can systematically invest or withdraw funds according to your needs and convenience.

Affordability
Investors individually may lack sufficient funds to invest in high-grade stocks. A mutual fund because of its large corpus allows even a small investor to take the benefits of its investment strategy.

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

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

Drawbacks of Mutual Funds

No Guarantees: No investment is risk free. If the entire stock market declines in value, the value of mutual fund shares will go down as well, no matter how balanced the portfolio. Investors encounter fewer risks when they invest in mutual funds than

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when they buy and sell stocks on their own. However, anyone who invests through a mutual fund runs the risk of losing money.

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

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

Management risk: When you invest in a mutual fund, you depend on the fund's manager to make the right decisions regarding the fund's portfolio. If the manager does not perform as well as you had hoped, you might not make as much money on your investment as you expected. Of course, if you invest in Index Funds, you forego management risk, because these funds do not employ managers.

Classification of Mutual Funds

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

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

Closed-ended Funds
A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor. A closed-end mutual fund has a number of share issued to the public through an initial public offering. These funds have a stipulated maturity period generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of initial public issue and there after they can bye or sell the unit of the scheme on the stock exchanges where they are listed. Once underwritten, closed end funds trade on stock exchanges like stocks or bonds. The market price of closed in funds is determine by supply and demand and not by Net Assets Value (NAV), as is the case in open-ends funds. Usually closed mutual funds trade at discounts to their underlying assets value.

Interval Funds

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

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Load Funds

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

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

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

Balanced Funds
The aim of balanced funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income

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Securities in the proportion indicated in their offer documents. In a rising stock market, the NAV of these schemes may not normally keep pace, or fall equally when the market falls. These are ideal for investors looking for a combination of income and moderate growth.

Money Market Funds

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

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

Other Schemes:
Tax Saving Schemes

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

Special Schemes

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Industry Specific Schemes

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

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

Sectoral Funds are those, which invest exclusively in a specified industry or a group of industries or various segments such as 'A' Group shares or initial public offerings.

Fund of Funds
A fund of funds is a type of mutual fund that invests in other mutual funds. Just as a mutual fund invests in a number of different securities, a fund of funds holds shares of many different mutual funds.

Fund of funds are designed to achieve greater diversification than traditional mutual funds. But on the flipside, expense fees on fund of funds are typically higher than those on regular funds because they include part of the expense fees charged by the underlying funds. Also, since a fund of funds buys many different funds which themselves invest in many different stocks, it is possible for the fund of funds to own the same stock through several different funds and it can be difficult to keep track of the overall holdings.

Net Asset Value (NAV)

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

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

Asset value is equal to

Sum of market value of shares/debentures + Liquid assets/cash held, if any + Dividends/interest accrued Amount due on unpaid assets Expenses accrued but not paid

Details on the above items

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For liquid shares/debentures, valuation is done on the basis of the last or closing market price on the principal exchange where the security is traded For illiquid and unlisted and/or thinly traded shares/debentures, the value has to be estimated. For shares, this could be the book value per share or an estimated market price if suitable benchmarks are available. For debentures and bonds, value is estimated on the basis of yields of comparable liquid securities after adjusting for liquidity. The value of fixed interest bearing securities moves in a direction opposite to interest rate changes Valuation of debentures and bonds is a big problem since most of them are unlisted and thinly traded. This gives considerable leeway to the AMCs on valuation and some of the AMCs are believed to take advantage of this and adopt flexible valuation policies depending on the situation. Interest is payable on debentures/bonds on a periodic basis say every 6 months. But, with every passing day, interest is said to be accrued, at the daily interest rate, which is calculated by dividing the periodic interest payment with the number of days in each period. Thus, accrued interest on a particular day is equal to the daily interest rate multiplied by the number of days since the last interest payment date. Usually, dividends are proposed at the time of the Annual General meeting and become due on the record date. There is a gap between the dates on which it becomes due and the actual payment date. In the intermediate period, it is deemed to be "accrued". Expenses including management fees, custody charges etc. are calculated on a daily basis

How to invest in Mutual Fund

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Identify your Investment needs

Your financial goals will vary, based on your age, lifestyle, financial independence, family commitments, and level of income and expenses among many other factors. Therefore, the first step is to assess your needs. You can begin by defining your investment objectives and needs which could be regular income, buying a home or finance a wedding or educate your children or a combination of all these needs, the quantum of risk you are willing to take and your cash flow requirements.

Choose the right Mutual Fund

The important thing is to choose the right mutual fund scheme which suits your requirements. The offer document of the scheme tells you its objectives and provides supplementary details like the track record of other schemes managed by the same Fund Manager. Some factors to evaluate before choosing a particular Mutual Fund are the track record of the performance of the fund over the last few years in relation to the appropriate yardstick and similar funds in the same category. Other factors could be the portfolio allocation, the dividend yield and the degree of transparency as reflected in the frequency and quality of their communications. For selecting the right scheme as per your specific requirements.

Select the ideal mix of Schemes

Investing in just one Mutual Fund scheme may not meet all your investment needs. You may consider investing in a combination of schemes to achieve your specific goals.

Invest Regularly

35

The best approach is to invest a fixed amount at specific intervals, say every month. By investing a fixed sum each month, you buy fewer units when the price is higher and more units when the price is low, thus bringing down your average cost per unit. This is called rupee cost averaging and is a disciplined investment strategy followed by investors all over the world. You can also avail the systematic investment plan facility offered by many open end funds.

DSP BlackRock Investment Managers Pvt. Ltd.

Introduction

DSP BlackRock Investment Managers Pvt. Ltd. is the investment manager to DSP BlackRock Mutual Fund. The philosophy of DSP BlackRock Investment Managers Ltd. has been grounded in the belief that experienced investment professionals, using a disciplined process and sophisticated analytical tools, can consistently add value to client portfolios. DSP BlackRock Investment Managers Ltd. takes a three dimensional approach to the management of the organization, incorporating functional, product and regional elements in support of clients goals. The functional dimension looks at the company s operations by specific task, such as portfolio management, account management or operations. The product dimension brings together the cross-disciplinary expertise critical to managing client assets in each class. Finally, the regional aspect of the company s model recognizes the unique, geographyspecific needs of clients as well as the importance of local regulatory issues. With our three-dimensional approach to managing the organization, we seek to: Ensure consistency on a global basis; Allow for the tailoring of products and services according to client or local needs; Promote teamwork among our employees worldwide; and Facilitate operational integrity and efficiency.

Key Personnel of DSP BlackRock

S Naganath (President & CIO) Anup Maheshwari (Exec VP, Hd. Eq. & Corp strategy) Dhawal Dalal (Sr. VP & Hd - Fixed Income) Apoorva Shah (Exec Sr. VP & Fund Mgr) Pankaj Sharma (Exec VP, Hd. - Buss. Dev & Risk Management)

36

 Ramamoorthy Rajagopal (Exec VP CAO).

FUND MANAGERS

Dhawal Dalal (Sr. VP & Hd. - Fixed Income). Apoorva Shah (Exec Sr. VP & Fund Mgr).

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CHAPTER - 3

COMPANY PROFILE

COMPANY PROFILE
38

DSP BLACKROCK

The Asset Management Company

DSP BlackRock Investment Managers Pvt. Ltd. is the investment manager to DSP BlackRock Mutual Fund. The philosophy of DSP BlackRock Investment Managers Pvt. Ltd. has been grounded in the belief that experienced investment professionals, using a disciplined process and sophisticated analytical tools, can consistently add value to client portfolios. DSP BlackRock Investment Managers Pvt. Ltd. takes a three dimensional approach to the management of the organization, incorporating functional, product and regional elements in support of clients' goals. The functional dimension looks at the company's operations by specific task, such as portfolio management, account management or operations. The product dimension brings together the cross-disciplinary expertise critical to managing client assets in each class. Finally, the regional aspect of the company's model recognizes the unique, geography-specific needs of clients as well as the importance of local regulatory issues. With our three-dimensional approach to managing the organization, we seek to: Ensure consistency on a global basis; Allow for the tailoring of products and services according to client or local needs; Promote teamwork among our employees worldwide; and Facilitate operational integrity and efficiency

DSP BlackRock Trustee Company Private Ltd., a company incorporated under the Companies Act, 1956, is the trustee for the Fund vides Trust Deed dated December 16, 1996. The shareholding of the Trustee is as follows: BlackRock Advisors Singapore Pvt. Ltd., a wholly owned subsidiary of BlackRock Inc., holds 49% and the balance 51% is held by Mr. Hemendra Kothari. Initially, the name of this company was DSP Merrill Lynch Ltd. But after the collaboration with Black Rock which is the U.S based Company well known for its Stamp/ mark (like ISI mark in India), it becomes DSP BlackRock Investment Mangers Pvt. Ltd. in the year April 2006.

Corporate Rankings
39

DSP BlackRock Mutual Fund has been ranked the Best Equity Fund House at the CNBCTV18 CRISIL Mutual Fund of the year awards 2010, out of 37 eligible fund houses. We have won this award for the 2nd consecutive year. Lipper Fund Awards 2010, out of 24 eligible fund houses. We have won this award for the 5th consecutive year.

Accolades such as these highlight the consistent performance that equity schemes from DSP BlackRock Mutual Fund have been delivering over the past few years. Depending on your risk profile, you could look at any or all of the schemes as your vehicles to reach your financial goals.

CNBC-TV18 CRISIL Mutual Fund of the year awards Last 1year performance ending Dec. 31st 2009. Lipper Fund awards 2010 last 3 years performance ending Dec. 31st 2009.

Sponsors:

DSP HMK Holdings Pvt. Ltd. and DSP ADIKO Holdings Pvt. Ltd. DSP HMK Holdings Pvt. Ltd. and DSP ADIKO Holdings Pvt. Ltd. are companies incorporated in 1983 under the Companies Act, 1956 and are also registered with the Reserve Bank of India as non deposit taking Non-banking Finance Companies. These companies have been functioning as investment companies.

BlackRock BlackRock is a premier provider of global investment management services to institutional and retail clients around the world managing assets in excess of US$ 1.3 trillion* as on June 30, 2009. Headquartered in New York, BlackRock serves clients from offices in 19 countries, maintaining a major presence in North America, Europe, Asia-Pacific, and the Middle East. With approximately 5,700 employees, including more than 700 investment professionals worldwide, BlackRock offers clients in-depth local knowledge and understanding, while leveraging the strength of their global presence and infrastructure to deliver focused investment solutions. Today,
40

BlackRock services clients in over 60 countries. *As on September 29, 2008; 1 USD@ Rs 46.94

BlackRock Inc.
40 East 52nd Street, New York, NY 10022, USA

Trustees :
DSP BlackRock Trustee Company Private Ltd., a company incorporated under the Companies Act, 1956, is the trustee for the Fund vides Trust Deed dated December 16, 1996. The shareholding of the Trustee is as follows: BlackRock Advisors Singapore Pvt. Ltd., a wholly owned subsidiary of BlackRock Inc., holds 49% and the balance 51% is held by Mr. Hemendra Kothari. Mr. Shitin D. Desai Mr. S. S. Thakur Mr. S. Doreswamy Mr. T.S Krishna Murthy

AMC Directors:

Mr. Hemendra M. Kothari, Chairman Mr. Laurence D Fink Ms. Susan L. Wagner Mr. K R V Subramanian Dr. Omkar Go swami Mr. Rakesh Mohan Mr. Rohit Bhagat

Management teams:
41

S. Naganath - President & CIO

S. Naganath is the President and Chief Investment Officer of DSP BlackRock Investment Managers Pvt. Ltd. He worked with DSP BlackRock Investment Managers Pvt. Ltd. (previously called DSP Merrill Lynch Fund Managers) from its inception (1996) to October 1999 as Chief Investment Officer. He then worked for Credit Suisse Asset Management, New York as a portfolio manager for international equities before re-joining DSP BlackRock Investment Managers Pvt. Ltd. in 2002 as Joint President and Chief Investment Officer. Prior to his initial position at DSP BlackRock Investment Managers, he had worked in Hong Kong as a portfolio manager with Merrill Lynch Asset Management and GT Management, Hong Kong. Naganath holds a Bachelor of Commerce degree from Madras University and a PGDM from Indian Institute of Management, Ahmadabad (class of 1987). In a poll conducted by The Asset Magazine in 2001, he was ranked as one of the most astute investors in the Asian markets, amongst his peers on the US East Coast.

Anup Maheshwari - Exec. Vice President, Head Equities & Corporate Strategy
Anup has been working with DSP BlackRock Investment Managers Pvt. Ltd. (previously called DSP Merrill Lynch Fund Managers) since July 1997, and has been managing the domestic funds since May 2001. Anup was CIO at HSBC Asset Management between Dec 2005 and May 2006 before returning to DSP BlackRock Investment Managers. Between 1997 and 2000, Anup also managed an offshore fund, the Merrill Lynch India Fund which was registered in Mauritius and sold to Merrill Lynch's clientele outside India. Prior to joining DSP BlackRock Investment Managers Pvt. Ltd., he worked with Chescor, a British fund management firm that managed three offshore funds investing into Indian equities. Anup obtained a Bachelor of Commerce degree from Sydenham College, Bombay University, in 1991 followed by a Post Graduate Diploma in Management (PGDM) from the Indian Institute of Management (IIM), Lucknow, in 1993. In May 2005, the "Top Fund Managers of India" survey conducted by Business Today and Mutualfundsindia.com, featured Anup amongst the top equity fund managers in the country.

Dhawal Dalal - Senior Vice President & Head Fixed Income

Mr. Dhawal Dalal joined Merrill Lynch Investment Managers in 1996 after receiving his MBA from the University of Dallas. He worked with the Merrill Lynch Private Client Fixed Income Division for approximately a year. He later joined Money Market Desk of Merrill Lynch Investment Managers. He returned to India in 1998 to join the Fixed Income Desk of DSP BlackRock Investment Managers Pvt. Ltd. (previously called DSP
42

Merrill Lynch Fund Managers). He is currently Senior Vice President and Head of Fixed Income at DSP BlackRock Investment Managers Pvt. Ltd..

Apoorva Shah - Exec. Vice President & Fund Manager

Apoorva Shah joined DSP BlackRock Investment Managers Pvt. Ltd. (previously called DSP Merrill Lynch Fund Managers) in April 2006. He previously held senior positions in the Global Private Client and Institutional Equity Sales divisions of DSP Merrill Lynch Ltd. Apoorva has a Post Graduate Diploma in Management (PGDM) from the Indian Institute of Management (IIM), Ahmedabad, and brings with him over 18 years of experience in banking and investment.

Pankaj Sharma - Exec. Vice President, Head of Business Development & Risk Management
Pankaj joined DSP BlackRock Investment Managers Pvt. Ltd. (previously called DSP Merrill Lynch Fund Managers) in June 2003 and is currently the head of Business Development & Risk Management. Pankaj has more than 15 years experience in the Banking and Finance sectors. Between June 2002 and May 2003, Pankaj was Head of Pre-Sales and Product Evangelist (Treasury Product) at Infosys Technologies. Prior to that, from April 1993 to April 2002, Pankaj served as Vice President (Risk Management) at Citibank, with assignments covering India, Singapore and the United States. Pankaj holds a Bachelor of Engineering degree in Computer Engineering and obtained his Post Graduate Diploma in Management (PGDM) from XLRI, Jamshedpur in 1993.

Ramamoorthy Rajagopal - Exec. Vice President, CAO

Ramamoorthy Rajagopal began his career as a Management Trainee with Mafatlal group in 1988. In 1989, he joined Arthur Andersen in their Financial Controls and Taxation department. Towards the end of 1992, he took up an overseas assignment with Alghanim Industries, Kuwait (one of the largest trading conglomerate in the Gulf with business interests in automotive, electronics, Insurance, Food & Consumables, Travel Services and Consumer Engineering) as a Senior Financial Analyst. In April 1996, he returned to India to join DSP Merrill Lynch Ltd in their Finance & Operations team and was part of the core team which was responsible for setting up systems and processes for their equity broking operations. In 2000, he started overseeing DSP Merrrill Lynchs Distribution back office operations.

43

In March 2002, he was moved to DSP BlackRock Investment Managers (previously called DSP Merrill Lynch Fund Managers) as Vice President and Chief Financial Officer (CFO). Currently, he is the Chief Administrative Officer (CAO) overseeing critical support functions viz. Fund Administration, Client Response and Operations, Finance, Technology, Legal & Compliance and Corporate Services. Ramamoorthy Rajagopal holds a Bachelor of Commerce degree from Mumbai University and the dual qualifications of CFA and ICWA.

Ajit Menon - Exec. Vice President, Head of Sales

Ajit has been working with DSP BlackRock Investment Managers Pvt. Ltd.( previously called DSP Merrill Lynch Fund Managers), since August 2000 and has been heading the Sales function since January 2008. Previous to that, Ajit has been heading the Banking and Retail channel sales for the firm. He has more than 15 years of Sales experience and prior to joining DSP BlackRock Investment Managers Pvt. Ltd., Ajit has worked with Standard Chartered Bank, Vodafone and Crompton Greaves Ltd. Ajit holds a Bachelor of Commerce degree from Parle College, University of Mumbai in 1991 followed by a Masters in Management Studies from Chetnas Ramprasad Khandelwal Institute of Management and Research, Mumbai university in 1994.

Registered Office

Our Registered / Corporate Office DSP BlackRock Investment Managers Private Limited West Wing, 11th Floor, Tulsiani Chambers, Nariman Point, Mumbai - 400 021.

44

PRODUCT PROFILE

45

PRODUCT PROFILE Open Ended Growth Schemes

DSP BlackRock Equity Fund (DSPBREF)

An Open Ended growth Scheme, seeking to generate long term capital appreciation, from a portfolio that is substantially constituted of equity securities and equity related securities of issuers domiciled in India.

DSP BlackRock Top 100Equity Fund (DSPBRTEF)

An Open Ended growth Scheme, seeking to generate capital appreciation, from a portfolio that is substantially constituted of equity securities and equity related securities of the 100 largest corporate, by market capitalization, listed in India.

DSP BlackRock Opportunities Fund (DSPBROF)

An Open Ended growth Scheme, seeking to generate long term capital appreciation and whose secondary objective is income generation and the distribution of dividend from a portfolio constituted of equity and equity related securities concentrating on the Investment Focus of the Scheme.

DSP BlackRock Tiger Fund (DSPBRTF)

An open ended diversified equity Scheme, seeking to generate capital appreciation, from a portfolio that is substantially constituted of equity securities and equity related securities of corporates, which could benefit from structural changes brought about by continuing liberalization in economic
46

policies by the Government and/or from continuing investments in infrastructure, both by the public and private sector.

DSP BlackRock Technology.com Fund (DSPBRTF)

An Open Ended growth Scheme, seeking to generate long term capital appreciation, and whose secondary objective is income generation and the distribution of dividend from a portfolio constituted of equity and equity related securities concentrating on the Investment Focus of the Scheme.

DSP Black Rock Small and Mid Cap Fund (DSPBRSMF)

An open Ended equity growth scheme, primarily seeking to generate long term capital appreciation from a portfolio substantially constituted of equity and equity related securities, which are not part of top 100 stocks by market capitalisation.

DSP BlackRock Tax Saver Fund (DSPBRTSF)

An open Ended equity linked savings scheme, whose primary investment objective is to seek to generate medium to long-term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity related securities of corporates, and to enable investors avail of a deduction from total income, as permitted under the Income Tax Act, 1961 from time to time.

DSP BlackRock Focus25 Fund (DSPBRF25)

The primary investment objective of the Scheme is to generate long-term capital growth from a portfolio of equity and equity-related securities including equity derivatives. The portfolio will largely consist of companies, which are amongst the top 200 companies by market capitalization.

47

Open Ended Income Schemes

DSP Black Rock Bond Fund (DSPBRBF) DSP Black Rock Government Securities Fund (DSPBRGSF) DSP Black Rock Short Term Fund (DSPBRSTF) DSP Black Rock Saving Manager Fund (DSPBRSMF)-Conservative. DSP Black Rock Saving Manager Fund (DSPBRSMF)- Moderate DSP Black Rock Saving Manager Fund (DSPBRSMF)-Aggressive.
DSP Black Rock Money Manager Fund (DSPBRMMF)

DSP BlackRock Micro Cap Fund

An Open equity growth scheme that seeks to generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities, which are not part of the top 300 companies by market capitalization. From time to time, the Investment Manager will also seek participation in other equity and equity related securities to achieve optimal portfolio construction. This shall be the fundamental attribute of the Scheme.

The Scheme was launched as a three year close ended scheme and has been converted into an open ended scheme with effect from June 15, 2010. Plans

Regular Institutional

Minimum Investment Regular Plan: Rs. 10,000 Institutional Plan: Rs. 5 crore SIP Rs. 1000 (min 12 installments) Regular Plan: Rs. 1,000 Institutional Plan: Rs. 5 lakh Exit Load (both plans) Holding Period: < 12 months: 1%; 12 months: Nil

Growth Expense Ratio* Plan Regular Ratio 2.28%

* Financial year beginning to June 30, 2010.

48

Entry Load: NIL.

Indicative Asset Allocation

Under normal circumstances, it is anticipated that the asset allocation shall be as follows: Indicative Allocation Risk Types of Instruments (% of Profile Corpus) 1(a) Equity & Equity related securities which are not part of the top 300 65% High stocks by market capitalization 100% 1(b) Equity & Equity related securities which are part of the top 300 stocks by market capitalization of 1(a) & (b) above, investments in 0% - 35% High ADRs, GDRs and foreign securities.

DSP BlackRock Income Schemes

DSP Black Rock Saving Manager Fund (DSPBRSMF)-Conservative

An Open Ended income Scheme, seeking to generate an attractive return, consistent with prudent risk, from a portfolio which is substantially constituted of quality debt securities. The Scheme will also seek to generate capital appreciation by investing a smaller portion of its corpus in equity and equity related securities of the 100 largest corporates, by market capitalization, listed in India.

DSP Black Rock Saving Manager Fund (DSPBRSMF)-Moderate

An Open Ended income Scheme, seeking to generate an attractive return, consistent with prudent risk, from a portfolio which is substantially constituted of quality debt securities. The Scheme will also seek to generate capital appreciation by investing a smaller portion of its corpus in equity and equity related securities of the 100 largest corporates, by market capitalization, listed in India.

DSP Black Rock Saving Manager Fund (DSPBRSMF)-Aggressive

49

An Open Ended income Scheme, seeking to generate an attractive return, consistent with prudent risk, from a portfolio which is substantially constituted of quality debt securities. The Scheme will also seek to generate capital appreciation by investing a smaller portion of its corpus in equity and equity related securities of the 100 largest corporates, by market capitalization, listed in India.

DSP Black Rock Balanced Fund (DSPBRBalF)

An Open Ended balanced Scheme, seeking to generate long term capital appreciation and current income from a portfolio constituted of equity and equity related securities as well as fixed income securities (debt and money market securities).

DSP BlackRock Investment Managers Pvt. Ltd.

Open Ended Schemes

Performance As On

Fund Size As on

Scheme Name DSP BlackRock Balanced Fund Dividend DSP BlackRock Balanced Fund - Growth DSP BlackRock Bond Fund - Retail Plan -

30 91 1 3 Rs. in Days Days Year Year Cr.

Jul 27, 2.6111 3.7965 27.983 13.6661 704.65 Jun 30, 2010 2010 Jul 27, 2.6099 3.7936 27.9765 13.6745 704.65 2010 Jun 30, 2010

Jul 27, -0.0388 1.277 4.118 6.0778 124.7 Jun 30, 2010 2010
50

Dividend DSP BlackRock Bond Fund - Retail Plan Growth DSP BlackRock Bond Fund - Retail Plan Monthly Dividend DSP BlackRock Equity Fund - Dividend DSP BlackRock Equity Fund - Growth DSP BlackRock Equity Fund - IP - Growth DSP BlackRock Floating Rate Fund - IP - Daily Div DSP BlackRock Floating Rate Fund - IP - Dividend DSP BlackRock Floating Rate Fund - IP - Growth DSP BlackRock Floating Rate Fund - IP - Wkly Div DSP BlackRock Floating Rate Fund - Regular Plan - Daily Div DSP BlackRock Floating Rate Fund - Regular Plan - Div DSP BlackRock Floating Rate Fund - Regular Plan - Growth DSP BlackRock Floating Rate Fund - Regular Plan - Wkly Div DSP BlackRock Focus 25 Fund - Dividend DSP BlackRock Focus 25 Fund - Growth DSP BlackRock Government Securities Fund - Dividend DSP BlackRock Government Securities

Jul 27, 0.2403 1.5588 4.61 6.9255 124.7 Jun 30, 2010 2010 Jul 27, 0.235 1.2272 4.1666 6.2697 124.7 Jun 30, 2010 2010 Jul 27, 3.4207 4.6513 36.4616 14.9355 2049.45 2010 Jul 27, 3.4173 4.6502 36.4714 14.9363 2049.45 2010 Jul 27, 3.475 4.7985 NA 2010 NA Jun 30, 2010 Jun 30, 2010

2049.45 Jun 30, 2010

Jul 23, 0.3678 1.097 4.1065 4.0842 2323.33 Jun 30, 2010 2010 Jul 27, 0.3175 1.1237 2323.33 Jun 30, 2010 NA NA 2010 Jul 27, 0.4479 1.2552 4.7161 6.8863 2323.33 Jun 30, 2010 2010 Jul 27, 0.4004 1.1022 4.1248 NA 2010 2323.33 Jun 30, 2010

Jul 23, 0.3497 1.0421 3.8807 5.4103 2323.33 Jun 30, 2010 2010 Jul 27, 0.3029 1.0687 3.9756 5.6522 2323.33 Jun 30, 2010 2010 Jul 27, 0.4257 1.1918 4.456 6.6076 2323.33 Jun 30, 2010 2010 Jul 27, 0.3807 1.0464 3.9 2010 Jul 27, 1.2854 NA 2010 Jul 27, 1.2854 NA 2010 NA NA 5.4466 2323.33 Jun 30, 2010

NA NA

NA NA

NA NA

Jul 27, -0.2217 2.0387 3.4942 9.5182 69.77 Jun 30, 2010 2010 Jul 27, 0.0899 2.3578 3.8208 10.9404 69.77 Jun 30, 2010 2010
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Fund - Growth DSP BlackRock Government Securities Fund - Mthly Dividend DSP BlackRock India Tiger Fund - Dividend DSP BlackRock India Tiger Fund - Growth

Jul 27, 0.0642 1.9794 3.1365 9.6166 69.77 Jun 30, 2010 2010 Jul 27, 3.4638 3.086 21.8787 6.6797 3191.42 Jun 30, 2010 2010 Jun 30, Jul 27, 3.4637 3.0818 21.8749 6.6887 3191.42 2010 2010

DSP BlackRock India Jul 27, 3.5099 3.2135 22.5384 3191.42 Jun 30, 2010 Tiger Fund - IP NA 2010 Dividend DSP BlackRock India Jul 27, 3.5174 3.2195 22.536 7.2311 3191.42 Jun 30, 2010 Tiger Fund - IP - Growth 2010 DSP BlackRock Jul 5, 2010 0.3443 0.9213 3.0526 4.7184 989.95 Jun 30, 2010 Liquidity Fund - IP - Dly Dividend DSP BlackRock Liquidity Jul 27, 0.4746 1.2645 4.101 6.2288 989.95 Jun 30, 2010 Fund - IP - Growth 2010 DSP BlackRock Jul 27, 0.3793 0.9929 3.1952 4.8239 989.95 Jun 30, 2010 Liquidity Fund - IP 2010 Wkly Dividend DSP BlackRock Jul 5, 2010 0.3277 0.8729 2.8525 4.5067 989.95 Jun 30, 2010 Liquidity Fund - Regular Plan - Dly Div DSP BlackRock Jul 27, 0.4536 1.1996 3.8381 5.9655 989.95 Jun 30, 2010 Liquidity Fund - Regular 2010 Plan - Growth DSP BlackRock Jul 27, 0.3637 0.9442 3.0136 4.6358 989.95 Jun 30, 2010 Liquidity Fund - Regular 2010 Plan - Wkly Div DSP BlackRock Micro Jul 27, 6.476 10.4714 15.8173 280.29 Jun 30, 2010 NA Cap Fund - Reg - Growth 2010 DSP BlackRock Money Jul 23, 0.3634 0.9577 3.1228 5.4716 616.83 Jun 30, 2010 Manager Fund - Daily 2010 Div DSP BlackRock Money Jul 27, 0.4479 1.1108 3.6506 6.2675 616.83 Jun 30, 2010 Manager Fund - Growth 2010 DSP BlackRock Money Jul 23, 0.3779 1.002 3.2814 5.7612 616.83 Jun 30, 2010 Manager Fund - IP 2010 Daily Div DSP BlackRock Money Jul 27, 0.4654 1.1612 3.8574 6.6101 616.83 Jun 30, 2010 Manager Fund - IP 2010 Growth DSP BlackRock Money Jul 27, 0.4165 1.0221 3.3791 5.6961 616.83 Jun 30, 2010 Manager Fund - IP 2010
52

Weekly Div DSP BlackRock Money Manager Fund - Weekly Div DSP BlackRock Natural Resources & New Energy Fund - Ret - Div DSP BlackRock Natural Resources & New Energy Fund - Ret - Gth DSP BlackRock Opportunities Fund - Div DSP BlackRock Opportunities Fund Growth DSP BlackRock Opportunities Fund - IP Div DSP BlackRock Opportunities Fund - IP Growth DSP BlackRock Savings Manager Fund Aggressive - Growth DSP BlackRock Savings Manager Fund Aggressive - Mthly Dividend DSP BlackRock Savings Manager Fund Aggressive - Qtly Dividend DSP BlackRock Savings Manager Fund Conservative - Growth DSP BlackRock Savings Manager Fund Conservative - Mthly Dividend DSP BlackRock Savings Manager Fund Conservative - Qtly Dividend DSP BlackRock Savings Manager Fund Moderate - Growth DSP BlackRock Savings

Jul 27, 0.401 0.978 3.1982 5.4765 616.83 Jun 30, 2010 2010 Jul 26, 3.4591 6.3122 32.8009 NA 2010 Jul 26, 3.4591 6.3122 32.8009 NA 2010 186.47 Jun 30, 2010

186.47 Jun 30, 2010

Jul 27, 3.91 7.2944 32.89 10.1668 886.42 Jun 30, 2010 2010 Jul 27, 3.9113 7.2957 32.892 10.1594 886.42 Jun 30, 2010 2010 Jul 27, 3.981 7.5094 33.8506 NA 2010 Jul 27, 3.981 7.5094 33.8506 NA 2010 886.42 Jun 30, 2010

886.42 Jun 30, 2010

Jul 27, -0.2712 0.4087 7.7695 8.2195 164.51 Jun 30, 2010 2010 Jul 27, 0.2776 6.5983 7.3765 164.51 Jun 30, 2010 -0.35 2010

Jul 27, -0.3764 0.3037 6.7174 7.6396 164.51 Jun 30, 2010 2010 Jul 27, 0.0838 1.5458 3.893 4.3839 25.43 Jun 30, 2010 2010 Jul 27, 0.0321 1.3131 3.3127 3.901 25.43 Jun 30, 2010 2010

Jul 27, -0.1069 1.3506 3.3963 3.9225 25.43 Jun 30, 2010 2010 Jul 27, -0.1617 0.4534 5.9869 6.6296 148.72 Jun 30, 2010 2010 Jul 27, -0.2117 0.3357 5.1052 5.9292 148.72 Jun 30, 2010
53

Manager Fund Moderate - Mthly Dividend DSP BlackRock Savings Manager Fund Moderate - Qtly Dividend DSP BlackRock Short Term Fund - Dividend DSP BlackRock Short Term Fund - Growth DSP BlackRock Short Term Fund - Monthly Dividend DSP BlackRock Short Term Fund - Wkly Div DSP BlackRock Small and Midcap Fund Dividend DSP BlackRock Small and Midcap Fund Growth DSP BlackRock Strategic Bond Fund - IP Dividend DSP BlackRock Strategic Bond Fund - IP - Dly Dividend Reinvest DSP BlackRock Strategic Bond Fund - IP - Growth DSP BlackRock Strategic Bond Fund - IP Monthly Dividend DSP BlackRock Strategic Bond Fund - IP - Weekly Dividend DSP BlackRock Strategic Bond Fund - Retail Dividend DSP BlackRock Strategic Bond Fund - Retail - Dly Dividend DSP BlackRock Strategic Bond Fund - Retail Growth DSP BlackRock Strategic Bond Fund - Retail -

2010 Jul 27, -0.2646 0.3505 5.223 5.9521 148.72 Jun 30, 2010 2010 Jul 27, 0.3597 1.1741 4.3504 5.8714 750.19 Jun 30, 2010 2010 Jul 27, 0.4923 1.3069 4.8468 6.5497 750.19 Jun 30, 2010 2010 Jul 27, 0.4448 1.1614 4.3494 5.8157 750.19 Jun 30, 2010 2010 Jul 27, 0.4398 1.1477 4.2511 5.7326 750.19 Jun 30, 2010 2010 Jul 27, 4.2228 6.9583 59.245 14.2477 893.41 Jun 30, 2010 2010 Jul 27, 4.2177 6.9527 59.226 14.2431 893.41 Jun 30, 2010 2010 Jul 27, 0.3348 1.0345 4.43 2010 NA 894.22 Jun 30, 2010

Jul 27, 0.3936 1.0078 3.8107 NA 2010

894.22 Jun 30, 2010

Jul 27, 0.4481 1.1486 4.4232 2.1691 894.22 Jun 30, 2010 2010 Jul 27, 0.4049 1.0261 3.7014 5.1935 894.22 Jun 30, 2010 2010 Jul 27, 0.4008 1.0109 3.8707 5.2543 894.22 Jun 30, 2010 2010 Jul 27, 0.3014 0.9125 3.4564 4.9009 894.22 Jun 30, 2010 2010 Jul 27, 0.3518 0.8883 3.3277 NA 2010 894.22 Jun 30, 2010

Jul 27, 0.4004 1.0121 3.8608 5.468 894.22 Jun 30, 2010 2010 Jul 27, 0.362 0.9051 3.1978 4.5774 894.22 Jun 30, 2010 2010
54

Monthly Dividend DSP BlackRock Strategic Bond Fund - Retail Weekly Dividend DSP BlackRock Tax Saver Fund - Dividend DSP BlackRock Tax Saver Fund - Growth DSP BlackRock Technology.com Fund Reg - Dividend DSP BlackRock Technology.com Fund Reg - Growth DSP BlackRock Top 100 Equity Fund Dividend DSP BlackRock Top 100 Equity Fund Growth DSP BlackRock Top 100 Equity Fund - IP Dividend DSP BlackRock Top 100 Equity Fund - IP Growth DSP BlackRock Treasury Bill Fund - Dividend DSP BlackRock Treasury Bill Fund - Growth DSP BlackRock Treasury Bill Fund - Mthly Dividend DSP BlackRock World Energy Fund - IP Growth DSP BlackRock World Energy Fund - Reg Dividend DSP BlackRock World Energy Fund - Reg Growth DSP BlackRock World Gold Fund - Dividend DSP BlackRock World Gold Fund - Growth

Jul 27, 0.3582 0.8912 3.3897 4.7947 894.22 Jun 30, 2010 2010 Jul 27, 4.0203 5.2789 37.6531 11.8476 859.8 Jun 30, 2010 2010 Jul 27, 4.018 5.2761 37.6472 11.8474 859.8 Jun 30, 2010 2010 Jul 27, 3.3105 -0.2167 43.8406 4.9046 89.53 Jun 30, 2010 2010 Jul 27, 3.3208 -0.1971 43.8051 4.901 89.53 Jun 30, 2010 2010 Jul 27, 1.3913 2.7374 22.1444 13.0236 2766.84 2010 Jul 27, 1.3924 2.7382 22.1484 12.9952 2766.84 2010 Jul 27, 1.4326 2.866 22.757 NA 2010 Jun 30, 2010 Jun 30, 2010

2766.84 Jun 30, 2010

Jul 27, 1.4326 2.866 22.757 7.9319 2766.84 Jun 30, 2010 2010 Jul 27, 0.3202 0.747 2.4384 3.7644 5.39 Jun 30, 2010 2010 Jul 27, 0.3956 0.8228 2.7079 4.3135 5.39 Jun 30, 2010 2010 Jul 27, 0.363 0.7343 2.4286 3.7625 5.39 Jun 30, 2010 2010 Jul 26, 5.9154 -7.3971 NA 2010 Jul 26, 5.884 -7.4771 NA 2010 Jul 26, 5.884 -7.4771 NA 2010 NA 298.99 Jun 30, 2010

NA

298.99 Jun 30, 2010

NA

298.99 Jun 30, 2010

Jul 26, -3.4915 7.1678 19.8112 1289.62 Jun 30, 2010 NA 2010 Jul 26, -3.4899 7.1704 19.8048 1289.62 Jun 30, 2010 NA 2010
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DSP BlackRock World Gold Fund - IP - Growth DSP BlackRock World Mining Fund - Reg Dividend DSP BlackRock World Mining Fund - Reg Growth

Jul 26, -3.4704 7.2355 -9.6149 NA 2010 Jul 26, 5.2498 -5.2088 NA 2010 Jul 26, 5.2498 -5.2088 NA 2010 NA

1289.62 Jun 30, 2010 195.67 Jun 30, 2010

NA

195.67 Jun 30, 2010

Chapter -4

Literature Survey
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CHAPTER -5

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OBJECTIVE/ SCOPE

OBJECTIVE OF THE PROJECT

THERE ARE TWO TYPES OF OBJECTIVE ;

PRIMARY OBJECTIVES
1- To know about the investors perception towards Mutual Fund for

growth of DSP BlackRock.

2- To findout the best fund for growth of company.

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SECONDARY OBJECTIVES
1- To identify the target customer. 2- To contact the target customer. 3- To know about awareness level of DSP BlackRock. 4- To know about schems of DSP BlackRock for growth. 5- To findout the competitors of DSP BlackRock.

SCOPE OF THE PROJECT:

The scope of this project includes certain points:

To get their distributors (i.e. ARN holders) easily with the help of this project. It increases the numbers of SIPs (Systematic Investment Plan) The suggestion of this project will help the organization to make suitable changes. This project provides help to learn about AMCs (Asset Management Co.) and Mutual Fund industry.

The scope of marketing is indeed vast & it is determined by the requirement of the customers. As well as here we can define the potential market and target customers of a specific
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company due to the scope of the company. there is a vital role the product after sales what type of service is being providing by the company. After sales function like;

Marketing

sales

service

Promotion, Advertisement, Sample product etc Convenience of the Product brand etc

According to the Exchange offer, needs & wants, assurance of the

product, guarantee, warrantee etc.

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Research Methodology

Introduction:
This chapter describes the methodology of the study. This study is focused on Varanasi region. In this I have covered almost all the places of Varanasi. Being constraints by data availability (both primary and secondary) and time and improper response from the respondents I have covered the regions during my summer training programme viz: in Varanasi.

The objectives of the research study are as following:

Awareness of mutual funds in Indian market. To identify the investors perception about mutual funds. To get knowledge about competitors.

Research is divided in two parts:

Research Design
Type of Research
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 Research methods

Sampling Design

Sample Size:- 120 respondents Sample Universe- All potential individual (who can become investors) area of
Varanasi city.

Sample Frame:- ages of 25-60 years.

Sampling Technique:- Stratified and Probability sampling

Sample Unit:- All the investors of DSP Black Rock in Varanasi City.

Types of Research:

Descriptive Research: Description of the conditions as it exists presently. Includes

survey & fact-finding enquiries of different kinds. Descriptive research is undertaken when the researcher has to get accurate description of a situation or relation between variables. This design tends to minimize bias and maximize the reliability of the data collected and analyzed. These are well structured.

Research method:

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Research methods are understood as all those methods and techniques that are used for conduction of research. Research methods or techniques refer to methods the researchers use in performing research operation. In other words, all those methods which are used by the researchers during the course of studying his research problems are termed as research methods. Since the object of research, particularly the applied research, is to arrive at a solution for a given problem, the available data and the unknown aspects of the problem have to be related to each other to make a solution possible. Keeping this in view I took the following two methods:

Analysis of documents Interview

Collection of data:
The information needed to further proceed in the project had been collected through primary data and secondary data.

Primary data:Primary data consists of information collected for the specific purpose at hand for the purpose of collecting primary data, survey research was used and all the investors of Varanasi were contacted and their competitors were also contacted. Survey research is the approach best suited gathering description. The primary data collection techniques used in the project is as follows: Survey methods By Questionnaire By Personnel Interview

This method was adopted because it helps to procuring data and detail information from the respondents. Here I collected data by filling questionnaires, directly talking to the respondents.

Secondary data:
The primary data collected was through samples investors and distributors in Varanasi city.

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I have also used the secondary data which include various written documents and other related information about the mutual fund industry in India. The secondary data about the company, its products, distributors, and searching investors through distributors. Various facts and figures were groomed out as the secondary data. The secondary data consists of information that already exists somewhere, having been collected for another purpose. Any researcher begins the research work by first going through the secondary data. Secondary data includes the information available with the company. It may be the findings of research previously done in the field. Secondary data can also be collected from magazines, newspapers, other surveys conducted by known research agencies etc.

Sampling Design:
Design is the plan, structure & strategy of investigation conceived so as to attain answer to question to survey and to control the variances. According to this projects/ surveys the analytical, interpretive/objective design was chosen. The sample comprised 120 respondents from Varanasi itself. All the respondents were first surveyed, interviewed and asked various questions regarding the three broad objectives of my research work and then their feed backs were taken. Then the analysis of each and every question was done and finally incorporated into research result. As there is no such popular model or technique available for this kind of research, I have done the analysis part of my project on my own, without using any model or scientific technique.

Universe of the Study

The universe of the study, I have selected all ARN holders and investors that are in an area of Varanasi region.

Sample Size
Samples of 120 investors were taken on the basis of convenience. The actual investors were contacted on the basis of stratified sampling.

Sampling Techniques

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For the study we have taken a sample size of 120 respondents pose probability sampling technique. Further we also applied judgment sampling.

Research Period:
Research work is only carried for 8 weeks.

Research Instrument:
This work is carried out through self-administered questionnaires. The questions included were opening ended, dichotomous and offered multiple choices.

DATA ANALYSIS AND

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INTERPRETATION

Q. 1- Have you invested your money in Mutual Fund company?

1. Yes

2. No

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Interpretation: More than 75%respondants have invested their money in MF Cos.

Q. 2- In which Mutual Fund Co. have you invested your money?

DSP Black Rock Kotak Mahindra HDFC Reliance Any Other (Please specify)..
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Interpretation: Most of the respondents have invested their money in DSP Black Rock
MF And then in Reliance MF

Q. 3 If DSP Black Rock how did you come to know about this Co.?
(1) Friend (3) Advertisement (2) Family (4) others (specify).

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Interpretation: Most of the investors come to know about this Co. by their friends.

Q. 4- Why have you Invest your money in DSP Black Rock?

(1) Good Schemes (3) More Profit (2) Brand Name (4) Any Others

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Interpretation: Due to good schemes, investors are with DSP Black Rock

Q. 5- Which Plan do you have of DSP Black Rock?

(1) SIP (3) Lump sum (2) STP (4) others (Specify)................
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Interpretation: Maximum nos of investors have invested their money in SIP i.e.
Systematic Invested Plan (either monthly or quarterly).

Q. 6- In Which Fund Plan you have invested your money?

(1) Equity Fund (3) Micro Cap (5) others (specify)
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(2) Small & Mid Cap (4) Sector fund

Interpretation: Most of the investors have invested their money in Equity Funds and then
go for Mico Cap Funds.

Q. 7- Why you invest your Money in this Plan?

(1) Good Rate of Returns (3) Low Investment Amount (2) High Risk Cover (4) Good Term Plan

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Interpretation: High risk cover is provided by company and rate of return is very good
and Then investment amount is very low.

Q. 8- Does company provides you better service?

(1) Yes (2) No

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Interpretation: More than 60% respondents are satisfied by its service.

Q. 9- Do you feel that Company should do some Promotional Activities?

(1) Yes

(2) No

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Interpretation: The company should focus on Promotional Activities to increase the

Awareness level of its Brand.

Q. 10- How would you rate DSP Black Rock ?

(1) Excellent

(2) Good
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(3) Better

(4) Poor

Interpretation: Most of the investors said its excellent but few of them said its poor.

Q. 11- What made you to invest in brand (other than DSP Black Rock)? Unawareness............. Lack of sales executive.

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Low return..

Other (specify)

MadeT Invest o
30 20 10 0 Made To Invest Made To Invest

Interpretation: Due to lack of sales executive and Unawareness of the Company, The investors invested their money in other companies.

Q. 12- Has the fund satisfied your expectation?

Agree .........

strongly agree ..........

neutral...........

Disagree.......

strongly disagree..........
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Interpretation: Most of the respondents are satisfied with the schemes of DSP Black Rock.

QUESTIONNAIRE
Dear Sir/Madam, I am Ritesh Singh a management trainee doing a survey on Mutual funds, requires your precious few minutes in order to complete my survey.
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Name:

_______________

Sex: Male Female (3) 45 and above

Age- (1) 25-35Yrs (2) 35-45Yrs Occupation:

Businessman Professional

Service man

Others (Specify)......

Q. 1- Have you invested your money in Mutual Fund company? (1) Yes (2) No

Q. 2- In which Mutual Fund Co. have you invested your money? DSP Black Rock Kotak Mahindra HDFC Reliance Any Other (Please specify)..

Q. 3 If DSP Black Rock how did you come to know about this Co.? (1) Friend (3) Advertisement (2) Family (4) others (specify).

Q. 4- Why have you Invest your money in DSP Black Rock? (1) Good Schemes (3) More Profit (2) Brand Name (4) Any Others

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Q. 5- Which Plan do you have of DSP Black Rock? (1) SIP (3) Lump sum (2) STP (4) others (Specify)................

Q. 6- In Which Fund Plan you have invested your money? (1) Equity Fund (3) Small & Mid Cap (5) Sector fund (2) Top 100 Equity Fund (4) Micro Cap (6) others (specify)

Q. 7- Why you invest your Money in this Plan? (1) Good Rate of Returns (3) Low Investment Amount (2) High Risk Cover (4) Good Term Plan

Q. 8- Does company provides you better service? (1) Yes (2) No

Q. 9- Do you feel that Company should do some Promotional Activities? (1) Yes (2) No

Q. 10- How would you rate DSP Black Rock ? (1) Excellent (3) Better (2) Good (4) Poor

Q. 11- What made you to invest in brand (other than DSP Black Rock)?
Unawareness............. Low return.. Lack of sales executive. Other (specify).. 80

Q. 12- Has the fund satisfied your expectation? Agree ......... Disagree....... strongly agree .......... strongly disagree.......... neutral...........

Your Suggestion / Comments____________________________________________ ____________________________________________________________________

LIMITATIONS

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Some of the limitations of the project are listed as below: 1. The time period of just 2 months was the major limitation.

2. Due to the financial and time constraints a cluster analysis of the population so as to get better results was not feasible.

3. It was difficult to break the ice with the common people initially. It was a daunting task to convince them to fill in the personal details of the questionnaire where they have to mention the monthly income, occupation etc.

4. To convince the people for a proper interviewing process is also difficult. 5. Compilation of data on competitor analysis was difficult due to non-availability of correct information.

6. The figures have been taken as approximations.

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CONCLUSIONS

1. Almost all the AMCs offer similar features and facilities with their Funds, therefore

for existing customers of any product of any AMC to shift to another AMC; this is very rarely the criteria or reason.

2. The level of service in terms of delivering whatever is promised, fast response in case

of problems, is the most important benefit that the customers seek, from the AMC they have a investment with.

3. Network reach and visibility of a company is a very important criterion for the

customer while investing. We can also conclude from our analysis that network reach in terms of Branches and service is directly proportional to the market share in case of Private Players.

4. In case of a new customer, if a company approaches it first for investing with them,

then there is a good chance for the company of getting many future businesses and cross sales from the deal.
5. Aggressive Marketing is the key to increasing the market share in this area, since the

market has a lot of potential both in terms of untapped market.

6. Always DSP believes in its product differentiation and quality of its product. Thats

why their total product category, features and facilities are totally different to their competitors. As taking example of some unique features like; 2 way sweep (automatic) Any cheque payment Return on your investment

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SUGGESTIONS

1. Contract Sales Executive (CSE) should be trained to explain the product features and its value added services to make customers product selection convenient.

2. Contract Sales Executive (CSE) should recommend right fund to the right investor so

as to ensure a high degree of satisfaction among the investors.

3. The company needs to make people aware about their products and the basic benefits

they can derive out of it. And also the differential features of its product as compared to other compititors.70% of the people did not even know about the concept, benefits and features of their investment.

4. The company should also focus on infrastructural funds as well as sector funds.

5. Quality of service has been rated highly important by all demographic and

psychographic factors as a reason for investment with a particular AMC, An AMC needs to improve the services provided to its existing customers before attracting more in the future and use word of mouth as a promotional tool to increase the sales potential of its products.

6. The company should also focus on the Promotional activities in North India region.

It can be done by

Advertisement (T.V, Newspaper and etc.) Publicity Public Relation

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BIBLIOGRAPHY

www.DSPBlackrock.com www.google.com www.wikipedia.com

www.karvy.com www.cams.com

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