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PERFORMANCE OF MUTUAL FUND AND THEIR COMPARATIVE ANALYSIS(TOP 5 COMPANIES)

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CONTENT
Serial No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Topic Acknowledgement Declaration Certificate Content Introduction Mutual funds Company Profile Organizational Structure Research Methodology Case Study Introduction of different mutual fund companies Schemes of companies Data Analysis Findings and suggestions Bibliography Page No. 1 2 3 4 5 15 42 52 53 56 57 86 134 137 138

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CHAPTER 1

INTRODUCTION

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WHAT IS INVESTMENT?
Investment is a term frequently used in the fields of economics, business management and finance. It can mean savings alone, or savings made through delayed consumption. Investment can be divided into different types according to various theories and principles. When an asset is bought or a given amount of money is invested in the bank, there is anticipation that some return will be received from the investment in the future. There are a number of definitions of investment. While dealing with the various options of investment, the defining terms of investment need to be kept in mind. According to economic theories, investment is defined as the per-unit production of goods, which have not been consumed, but will however, be used for the purpose of future production. Examples of this type of investments are tangible goods like construction of a factory or bridge and intangible goods like 6 months of on-the-job training. In terms of national production and income, Gross Domestic Product (GDP) has an essential constituent, known as gross investment. “Investment is the investing of money or capital in order to gain Profitable returns, as interest, income, or appreciation in value. “

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The Indian market is different from other Asian markets: One of the big differences is that the Indian market, at least today, is less dependent on the manufacturing sector. Singapore, Malaysia, Taiwan, China, grew up as manufacturing centre - low-cost, high-volume. India is strong in the software, service area that really requires communication and IT infrastructure, which in many ways, is more advanced in India than in most of the other Asian countries.

Why Investment? • Inflation is constantly increasing the cost of goods and services and eating into the value of your income and wealth. You need to save money and invest it well so that the value of every rupee is augmented. • • • Higher life-expectancy means people live longer and hence, need more money to maintain their living standards. Investing selectively allows you to enjoy tax benefits. By investing wisely you can improve your standard of living and create wealth for the future

Factors which influence the decision of investment: Past market trends Sometimes history repeats itself; sometimes markets learn from their mistakes. You need to understand how various asset classes have performed in the past before planning your finances.

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Your risk appetite The ability to tolerate risk differs from person to person. It depends on factors such as your financial responsibilities, your environment, your basic personality, etc. Therefore, understanding your capacity to take on risk becomes a crucial factor in investment decision making. Investment horizon How long can you keep the money invested? The longer the time-horizon, the greater are the returns that you should expect. Further, the risk element reduces with time. Investible surplus How much money are you able to keep aside for investments? The investible surplus plays a vital role in selecting from various asset classes as the minimum investment amounts differ and so do the risks and returns. Investment need How much money do you need at the time of maturity? This helps you determine the amount of money you need to invest every month or year to reach the magic figure. Expected returns The expected rate of returns is a crucial factor as it will guide your choice of investment. Based on your expectations, you can decide whether you want to invest heavily into equities or debt or balance your portfolio. How to invest? 1. What are investor’s needs and financial goals? Do investors need a regular income or want to buy a house or require funds for his/her child's education? 2. How much risk are investors willing to take on? Can investor withstand the volatilities in the capital market or are investor satisfied with a low-risk, lowreturns philosophy? 5|Page

3. How soon do investors need the money? Can investor invest for a longer timehorizon or do investors need money in the near future? 4. What are investor’s cash flow requirements? Do investors need a regular income or a lump sum amount after a certain period of time? When to invest It's never too late or too early to start investing. The best time to invest is now. The 4 keys that could guide investor regarding when to invest are:1. Start investing early- Start early and retire rich. Invest whatever you can today and move steadily towards a secure tomorrow. 2. Invest regularly- Invest regularly and methodically and let the magic of compounding work for you. 3. Never time the market- Be a smart investor. Always invest in time but never try to time the market. Timing the market is mastered by none and is beyond one's control. 4. Be patient- For long-term wealth creation, you need to be patient. The longer the investment horizon, the lesser is the risk and greater are the returns Investment Options in India Today choosing a best investment plan is difficult because there are so many Investment options available. These days we are getting more money Compared to last decades 1. Fixed deposits 2. Insurance policies 3. National saving certificate 4. Public provident fund 5. Stock market 6|Page

6. Mutual funds 7. Gold 8. Real estate 9. Equity 10. Investment in non resident ordinary (NRO) funds 11. Commodity 12. Currency investment 13. Investment in art  Investments in Bank Fixed Deposits (FD) Fixed deposits are the instruments where an investor can invest his Money for a long duration of time on a fixed rate of return. These types of instruments are generally secured & have low risk. These instruments have low risk profile as this is a debt instrument. Fixed Deposit or FD is accrues 8.5% of yearly profits, depending on the bank's tenure and guidelines, which makes it's widely sought after and safe investment alternative. The minimum tenure of FD is 15 days and maximum tenure is 5 years and above. Senior citizens are entitled for exclusive rate of interest on Fixed Deposits.  Investments in Insurance policies Insurance features among the best investment alternative as it offers services to indemnify your life, assets and money besides providing satisfactory and risk free profits. Indian Insurance Market offers various investment options with reasonably priced premium. Some of the popular Insurance policies in India are Home Insurance policies, Life Insurance policies, Health Insurance policies and Car Insurance policies.

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Some top Insurance firm in India under whom you can buy insurance scheme are LIC, SBI Life, ICICI Prudential, Bajaj Allianz, Birla Sun life, HDFC Standard Life, Reliance Life, Max New York Life, MetLife, Tata AIG, Kotak Mahindra Life, ING Life Insurance, etc.

 Investments in National Saving Certificate (NSC)

National Saving Certificate (NSC) is subsidized and supported by government of India as is a secure investment technique with a lock in tenure of 6 years. There is no utmost limit in this investment option while the highest amount is estimated as Rs 100. The investor is entitled for the calculated interest of 8% which is forfeited two times in a year. National Saving Certificate falls under Section 80C of IT Act and the profit accrued by the investor stands valid for tax deduction up to Rs 1, 00,000.

 Investments in Public Provident Fund (PPF) PPF is a scheme by government or some special Organizations for its employees. They during their course of working can contribute to their PPF on monthly basis for a certain period of time or until they are into service. This amount is given to the employee on his retirement along with some interest. An investment of minimum Rs 500 and maximum Rs 70, 000 is required to be deposited in a fiscal year. The prospective investor can create it PPF account in a GPO or head post office or in any sub-divisions of the centralizedbank. 8|Page

PPF also falls under Section 80C of IT Act so investors could gain income tax deduction of up to Rs 1, 00,000. The rate of interest of PPF is evaluated yearly with a lock in tenure of maximum 15 years. The basic rate of interest in PPF is 8%.

 Investments in Stock Market Investing in share market yields higher profits. Influenced by unanticipated turn of market events, stock market to some extent cannot be considered as the safest investment options. However, to accrue higher gains, an investor must update himself on the recent stock market news and events.

 Investments in Mutual Funds A mutual fund is a professionally-managed form of collective investments that pools money from many investors and invests in stocks, bond, short term money market instruments, and/or other securities. In a mutual fund, the fund manager, who is also known as the portfolio manager, trades the fund’s underlying securities, realizing capital gains or losses, and collects the dividend or interest income.  Investments in Gold, Silver Gold & Silver commodity markets are generally differentiated from other commodity markets due to their high trade. Investment in gold & silver is beneficial in India because their price varies according to seasons, with their cultural importance.

 Investments in Real Estate Real Estate Investment in India is one of most successful investment phenomenon in the last few decades. Real Estate industry in India has reached a culmination point ever since, the gates were opened to the foreign investors. This is the reason why many 9|Page

foreign

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The real estate developments in the country consist of the following:     

Constructing houses Townships Residential complexes Office buildings Shopping malls IT PARK



Investments in Equity

Private Equity is expanding at a fast pace. India acquired US $13.5 billion in 2008 under equity shares and featured among the top 7 nations in the world. In 2010, the total equity investment is predicted to increase up to USD 20 billion. Indian equities promise satisfactory returns and have more than 365 equity investments firms functioning under it.


Investments in Non Resident Ordinary (NRO) funds

Investing in domestic (NRO) is one of the best investment alternatives for NRIs who wish to deposit their income accrued abroad and maintain it in Indian rupees. The deposited amount along with the interest is completely repatriable. Investment can be done in Indian financial institutions including the Non Banking Finance Companies which are listed with RBI. The interest returns accrued on in this account is entitled under IT Act and is subject to 30% tax reduction at source including the appropriate surcharge and education cess. The NRI investor can repatriate upto USD 1 million every year, for genuine reasons, by forfeiting valid tariffs.


Investments in commodity

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Commodities mean all types of products. However, the Foreign Currency Regulation Act (FCRA) defines them as 'every kind of movable property other than actionable claims, money and securities.' Commodity trading is nothing but trading in commodity spot and derivatives (futures). If you are keen on taking a buy or sell position based on the future performance of agricultural commodities or commodities like gold, silver, metals, or crude, then you could do so by trading in commodity derivatives. Commodity derivatives are traded on the National Commodity and Derivative Exchange (NCDEX) and the Multi-Commodity Exchange (MCX). Gold, silver, agri-commodities including grains, pulses, spices, oils and oilseeds, mentha oil, metals and crude are some of the commodities that these exchanges deal in.


Investments in currency

The function of currency investment is much the same as it is investing in stocks when and other sorts of investment opportunities. The ultimate goal is to buy low and sell high. Unlike most types of investments, buying currency results in neither ownership of a company or holding a debt of a company. If anything, it can be seen as buying an obligation from another country. Once the currency is purchased, it can be kept on hand in a physical form or simply treated as a digital asset.  Investment in art Art as an investment avenue has been considered an interesting and profitable alternative, but it is also extremely risky. With uncertain stock market returns and interest rates at their lowest in decades, nervous investors are now considering alternative investment avenues. Some of them are hoping to find solace in alternative investments such as fine art, wine and even stamps.

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These alternative investments' performance is alluring. Indices tracking the performance of high-class art have held up well in the recent economic slowdown, while art-auction houses report record prices. Where earlier art was the preserve of only the artists and art aficionados, today it replaces blue-chip stocks as an invest option. And financial institutions and art galleries in the country have jumped onto the wagon and floated art funds. While new entrants scope the offerings for investment opportunities, for art lovers’ today buying art is not just about succumbing to a passion it also offers art aficionados the added advantage of future returns, if the need occurs.

WHAT IS A MUTUAL FUND?
A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds). When you invest in a mutual fund, you are buying units or portions of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund. Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient and also easy to invest in, thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing risk & maximizing returns. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. A Mutual Fund is an investment tool that allows small investors access to a well diversified portfolio of equities, bonds and other securities. Each shareholder participates in the

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gain or loss of the fund. Units are issued and can be redeemed as needed. The funds Net Asset value (NAV) is determined each day. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders.

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When an investor subscribes for the units of a mutual fund, he becomes part owner of the assets of the fund in the same proportion as his contribution amount put up with the corpus (the total amount of the fund). Mutual Fund investor is also known as a mutual fund shareholder or a unit holder. Any change in the value of the investments made into capital market instruments (such as shares, debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV is defined as the market value of the Mutual Fund scheme's assets net of its liabilities. NAV of a scheme is calculated by dividing the market value of scheme's assets by the total number of units issued to the investors.

ADVANTAGES OF MUTUAL FUND
 Portfolio Diversification: Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. You achieve this diversification through a Mutual Fund with far less money than you can do on your own.  Professional management: Mutual Funds provide the services of experienced and skilled professionals, backed by a dedicated investment research team that analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme.



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

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 Flexibility & Convenience: Mutual fund offers 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.  Low cost: 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.  Tax benefit: Dividends given by equity oriented mutual funds are tax-free in the hands of the investor. In case of Debt funds, the funds pay dividend distribution tax.  Transparency: India mutual funds are regulated by the Securities and Exchange Board of India, which helps provide comfort to the investors. Sebi forces transparency on the mutual funds, which helps the investor make an informed choice. Sebi requires the mutual funds to disclose their portfolios at least six monthly, which helps you keep track whether the fund is investing in line with its objectives or not. However, most mutual funds voluntarily declare their portfolio once every month.

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DISADVANTAGE OF MUTUAL FUND
 No Control over Costs: An investor in a mutual fund has any control over the

overall cost of investing. He/she has to pay investment management fees as long as he/she remains with the fund. Fees are payable even while the value of the investment may be declining.
 No Tailor made Portfolios: Investors who invest on their own can build their own

portfolios of shares and bonds and other securities. Investing through fund means he/she delegates this decision to the fund managers.


Managing a Portfolio of Funds: Availability of a large number of funds can actually mean too much choice for the investor. He/she may again need advice on how to select a fund to achieve his/her objectives, quite similar to the situation when he/she has to select individual shares or bonds to invest in.

 Entry and Exit Cost: When large bodies like a fund invest in shares, the

concentrated buying or selling often result in adverse price movements i.e. at the time of buying, fund has to pay high and vice-versa.
 No Guarantees: No investment is risk free. If the entire stock market declines in

value, the value of mutual fund shares will go down as well, no matter how balanced the portfolio. Investors encounter fewer risks when they invest in mutual funds than when they buy and sell stocks on their own.

ENTITIES INVOLVED IN MUTUAL FUNDS
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Regulatory Authorities

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To protect the interest of the investors, SEBI formulates policies and regulates the mutual funds. It notified regulations in 1993 (fully revised in 1996) and issues guidelines from time to time. MF either promoted by public or by private sector entities including one promoted by foreign entities is governed by these Regulations. SEBI approved Asset Management Company (AMC) manages the funds by making investments in various types of securities. Custodian, registered with SEBI, holds the securities of various schemes of the fund in its custody According to SEBI Regulations, two thirds of the directors of Trustee Company or board of trustees must be independent. The Association of Mutual Funds in India (AMFI) reassures the investors in units of mutual funds that the mutual funds function within the strict regulatory framework. Its objective is to increase public awareness of the mutual fund industry. AMFI also is engaged in upgrading professional standards and in promoting best industry practices in diverse areas such as valuation, disclosure, transparency etc.

Working of Mutual Fund

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HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank. Though the growth

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was slow, but it accelerated from the year 1987 when non-UTI players entered the Industry. In the past decade, Indian mutual fund industry had seen a dramatic improvement, both qualities wise as well as quantity wise. Before, the monopoly of the market had seen an ending phase; the Assets Under Management (AUM) was Rs67 billion. The private sector entry to the fund family raised the Aum to Rs. 470 billion in March 1993 and till April 2004; it reached the height if Rs. 1540 billion. The Mutual Fund Industry is obviously growing at a tremendous space with the mutual fund industry can be broadly put into four phases according to the development of the sector. Each phase is briefly described as under.

First Phase – 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament 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.

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 21 | P a g e

1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores. Third Phase – 1993-2003 (Entry of Private Sector Funds) The 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores.

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 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. Consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes. Diversification 22 | P a g e

Diversification is nothing but spreading out your money across available or different types of investments. By choosing to diversify respective investment holdings reduces risk tremendously up to certain extent. The most basic level of diversification is to buy multiple stocks rather than just one stock. Mutual funds are set up to buy many stocks. Beyond that, you can diversify even more by purchasing different kinds of stocks, then adding bonds, then international, and so on. It could take you weeks to buy all these investments, but if you purchased a few mutual funds you could be done in a few hours because mutual funds automatically diversify in a predetermined category of investments (i.e. - growth companies, emerging or mid size companies, low-grade corporate bonds, etc).

Types of Mutual Funds Schemes in India
Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. thus mutual funds has Variety of flavors, Being a collection of many stocks, an investors can go for picking a mutual fund might be easy. There are over hundreds of mutual funds scheme to choose from. It is easier to think of mutual funds in categories, mentioned below.

Overview of existing schemes existed in mutual fund category:

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BY STRUCTURE

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1. Open - Ended Schemes: 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. 2. Close - Ended Schemes: These schemes have a pre-specified maturity period. One can invest directly in the scheme at the time of the initial issue. Depending on the structure of the scheme there are two exit options available to an investor after the initial offer period closes. Investors can transact (buy or sell) the units of the scheme on the stock exchanges where they are listed. The market price at the stock exchanges could vary from the net asset value (NAV) of the scheme on account of demand and supply situation, expectations of unitholder and other market factors. Alternatively some close-ended schemes provide an additional option of selling the units directly to the Mutual Fund through periodic repurchase at the schemes NAV; however one cannot buy units and can only sell units during the liquidity window. SEBI Regulations ensure that at least one of the two exit routes is provided to the investor. 3. Interval Schemes: Interval Schemes are that scheme, which combines the features of open-ended and close-ended schemes. The units may be traded on the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV related prices. BY NATURE 1. Equity fund: These funds invest a maximum part of their corpus into equities holdings. The structure of the fund may vary different for different schemes and the fund manager’s outlook on

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different stocks. The Equity Funds are sub-classified depending upon their investment objective, as follows:
• • • •

Diversified Equity Funds Mid-Cap Funds Sector Specific Funds Tax Savings Funds (ELSS)

Equity investments are meant for a longer time horizon, thus Equity funds rank high on the risk-return matrix. 2. Debt funds: The objective of these Funds is to invest in debt papers. Government authorities, private companies, banks and financial institutions are some of the major issuers of debt papers. By investing in debt instruments, these funds ensure low risk and provide stable income to the investors. Debt funds are further classified as:


Gilt Funds: Invest their corpus in securities issued by Government, popularly known as Government of India debt papers. These Funds carry zero Default risk but are associated with Interest Rate risk. These schemes are safer as they invest in papers backed by Government.



Income Funds: Invest a major portion into various debt instruments such as bonds, corporate debentures and Government securities.



MIPs: Invests maximum of their total corpus in debt instruments while they take minimum exposure in equities. It gets benefit of both equity and debt market. These scheme ranks slightly high on the risk-return matrix when compared with other debt schemes.



Short Term Plans (STPs): Meant for investment horizon for three to six months. These funds primarily invest in short term papers like Certificate of Deposits

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(CDs) and Commercial Papers (CPs). Some portion of the corpus is also invested in corporate debentures.


Liquid Funds: Also known as Money Market Schemes, These funds provides easy liquidity and preservation of capital. These schemes invest in short-term instruments like Treasury Bills, inter-bank call money market, CPs and CDs. These funds are meant for short-term cash management of corporate houses and are meant for an investment horizon of 1day to 3 months. These schemes rank low on risk-return matrix and are considered to be the safest amongst all categories of mutual funds.

3. Balanced funds: As the name suggest they, are a mix of both equity and debt funds. They invest in both equities and fixed income securities, which are in line with pre-defined investment objective of the scheme. These schemes aim to provide investors with the best of both the worlds. Equity part provides growth and the debt part provides stability in returns. Further the mutual funds can be broadly classified on the basis of investment parameter viz, Each category of funds is backed by an investment philosophy, which is pre-defined in the objectives of the fund. The investor can align his own investment needs with the funds objective and invest accordingly. By investment objective: • Growth Schemes: Growth Schemes are also known as equity schemes. The aim of these schemes is to provide capital appreciation over medium to long term. These schemes normally invest a major part of their fund in equities and are willing to bear short-term decline in value for possible future appreciation. • Income Schemes: Income Schemes are also known as debt schemes. The aim of these schemes is to provide regular and steady income to investors. These

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schemes generally invest in fixed income securities such as bonds and corporate debentures. Capital appreciation in such schemes may be limited. • Balanced Schemes: Balanced Schemes aim to provide both growth and income by periodically distributing a part of the income and capital gains they earn. These schemes invest in both shares and fixed income securities, in the proportion indicated in their offer documents (normally 50:50). • Money Market Schemes: Money Market Schemes aim 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. Other schemes


Tax Saving Schemes:

Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from time to time. Under Sec.88 of the Income Tax Act, contributions made to any Equity Linked Savings Scheme (ELSS) are eligible for rebate.


Index Schemes:

Index schemes attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50. The portfolio of these schemes will consist of only those stocks that constitute the index. The percentage of each stock to the total holding will be identical to the stocks index weightage. And hence, the returns from such schemes would be more or less equivalent to those of the Index.


Sector Specific Schemes:

These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these 28 | P a g e

funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time. Types of returns There are three ways, where the total returns provided by mutual funds can be enjoyed by investors:


Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all income it receives over the year to fund owners in the form of a distribution.



If the fund sells securities that have increased in price, the fund has a capital gain. Most funds also pass on these gains to investors in a distribution.

If fund holdings increase in price but are not sold by the fund manager, the fund's shares increase in price. You can then sell 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.

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Why invest in Mutual Funds? Mutual funds are popular investments, primarily because of their numerous benefits: Diversification: Mutual funds help you diversify your portfolio, or spread your money over a number of different investments that are handpicked and tracked by professional money managers. This strategy can help decrease risk to your portfolio because when your investment return isn't dependent on any single investment, the impact of one poor performer on your portfolio is reduced. Convenience: Mutual funds make investing easy and flexible by emphasizing convenience to the investor in several ways: • Low minimum investment: Most mutual funds require low minimum investments making it easy for investors to build a diverse portfolio fairly quickly. • Easy liquidity: You can cash in any or all of your mutual fund shares on any business day. The value of your shares is based on the closing market price (net asset value, or NAV) of the underlying securities. • Automatic reinvestment: You can automatically purchase more mutual fund shares by reinvesting your dividends and capital gains distributions. • Systematic withdrawal: You can request that regular payments from systematically selling shares be sent directly to you.

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Professional Management: Experienced, full-time money managers manage each mutual fund. These professional money managers: • Research general market and economic trends: Using the information they gather, the fund's professional money managers decide when to buy or sell securities to increase return potential and keep constant tabs on individual holdings and the overall performance of particular markets, adjusting the portfolio for the strongest possible performance. • Strive to achieve specific objectives: Because each fund h as a specific investment objective, such as long-term growth or aggressive growth, managers can focus on the strategic goals of their funds. Financial benefits: These include: • Mutual fund unit holders can earn dividends on their mutual fund units. • Unit holders can also profit from the sale of their units if they sell them for more than their original value. • Unit holders can receive their dividend payments directly or reinvest them back into the fund and purchase additional units.

Investment strategies
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1. Systematic investment plans (sip) Investing regularly through a Systematic Investment Plan (SIP) in an equity fund is one strategy that can ensure success to a large extent for those who are looking to build up their capital over the longer term and are not familiar with equity markets. It is a proven fact that a steady saving and investing plan helps pursue financial goals. What SIP really means is that investor invests a fixed sum every month. When investor invest a fixed amount, such as Rs.10000 a month, Some of the Benefits of SIPs are as follows: Rupee Cost Averaging: SIP makes market timing irrelevant. In other words, you can invest a certain amount of money every month at various entry prices buying fewer units when the share prices are high and more units when the share prices are low. Besides, you take advantage of the fact that over a period of time stock markets generally go up, so your average cost price tends to fall below the average NAV. This "averaging" ensures that you buy at different levels, not just the top. Benefit of Compounding: The profits you earn from your investments get reinvested. Therefore you earn returns on your primary investments and reinvested profits.

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Instead of blocking your money by making a one-time investment, in an SIP, you can spread the same amount over a certain period of time and maintain liquidity. Building for the Future: SIP is an effective method of ensuring regular savings and achieving your short-term or long-term financial goals. It is also an excellent method of utilizing your funds, which may be, otherwise, lying idle. Step-wise Approach to an SIP:  Choose the amount you want to invest at each interval. (The amount must be such that you will be comfortable investing regularly over the long term)  Choose the frequency of your investment - every month, every quarter, every six months.  Continue investing the same amount each period irrespective of whether the market falls or rises.  Maintain a long-term perspective. Ignore the day-to-day fluctuations in the market.

Keep investing over a long period of time to give your money a chance to grow.

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Under this an investor invests in debt oriented fund and gives instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same mutual fund. 3. Systematic Withdrawal Plan: If someone wishes to withdraw from a mutual fund then he can withdraw a fixed amount each month. 4. Lump sum investment: In this type of investment, investor invests the money at one time only. Say you have Rs. 10 lakh with you and you decide to invest the entire amount in stocks or mutual funds or gold together then you are making lump sum investments. What you get in return are units (if you are buying into a mutual fund) at the then prevailing net asset value (NAV).

Risk Involved in Mutual Funds
All investments involve some form of risk, which should be evaluated them potential Rewards when an investment is selected.  Managing risk At times the prices or yields of all the securities in a particular market rise or fall due to broad outside influences. When this happens, the stock prices of both an outstanding, highly profitable company and a fledgling corporation may be affected. This change in price is due to “market risk”.  Interest rate risk Sometimes referred to as “loss of purchasing power”. Whenever inflation sprints forward faster than the earnings on your investment, you run the risk that you will

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actually be able to buy less, not more. Inflation risk also occurs when prices rise faster than your returns.  Credit risk In short, how stable is the company or entity to which you lend your money when you invest? How certain are you that it will be able to pay the interest you are promised, or repay your principal when the investment matures?

 Investment risks The sectoral fund schemes, investments will be predominantly in equities of select Companies in the particular sectors. Accordingly, the NAV of the schemes are linked to the equity performance of such companies and may be more volatile than a more diversified portfolio of equities.

 Changes in government policy Changes in Government policy especially in regard to the tax benefits may impact the business prospects of the companies leading to an impact on the investments made by the fund.

Risk vs. Return

When you choose to invest in a mutual fund, it is important to consider how that fund will fit into your investment strategy. An investment in a mutual fund should not depend entirely on the mutual fund's returns; risk and diversification in the context of your portfolio are also other important factors to consider.

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As you can see from the diagram above, Money Market Funds and Capital Preservation Funds tend to be the lowest risk; however they also offer the lowest returns. Income Funds – such as bond and mortgage funds – tend to be more risky than Capital Preservation Funds, but less risky than Growth and Income Funds. Aggressive Growth funds have the potential for the highest return, but are also the highest risk asset class.

Snapshot of mutual fund schemes: The following table summarizes different types of mutual fund schemes, their objective, where do they invest and their risk:

Mutual Fund Type Money Market 36 | P a g e

Objective

Risk

Investment Portfolio Treasury Bills, Certificate of

Who should invest

Investment horizon 2 days - 3 weeks

Liquidity + Moderate

Negligible

Those who park their funds in

Income + Reservation of Capital Short-term Funds (Floating shortterm) Bond Funds (Floating Longterm) Gilt Funds Liquidity + Moderate Income Little Interest Rate

Regular Income

Credit Risk & Interest Rate Risk

Security & Income Long-term Capital Appreciation

Interest Rate Risk High Risk

Deposits, Commercial Papers, Call Money Call Money, Commercial Papers, Treasury Bills, CDs, Short-term Government securities. Predominantly Debentures, Government securities, Corporate Bonds Government securities Stocks

current accounts or short-term bank deposits Those with surplus short-term funds 3 weeks 3 months

Salaried & conservative investors

More than 9 - 12 months

Salaried & conservative investors Aggressive investors with long term outlook Aggressive investors

1 year and more > 3 years

Equity Funds

Index Funds

Balanced Funds

To generate NAV varies returns that with index are performance commensurate with returns of respective indices Growth & Capital Regular Market Risk Income and Interest Rate Risk

Portfolio indices like BSE, NIFTY etc

> 3 years

Balanced ratio of equity and debt funds to ensure higher returns at lower risk

Moderate & Aggressive

> 2 years

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.

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Chapter 2

About KARVY

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Company profile
KARVY, is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, services over 16 million individual investors in various capacities, and provides investor services to over 300 corporate, comprising the who is who of Corporate India. KARVY covers the entire spectrum of financial services such as Stock broking, Depository Participants, Distribution of financial products - mutual funds, bonds, fixed deposit, equities, Insurance Broking, Commodities Broking, Personal Finance Advisory Services, Merchant Banking & Corporate Finance, placement of equity, IPO’s, among others. Karvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments. It is a member of all three: National Stock Exchange (NSE)  Bombay Stock Exchange (BSE)  Hyderabad Stock Exchange (HSE) Karvy utilized its experience and superlative expertise to capitalize on its strengths and better its service, innovate and provide new ones. It diversified in the process and thus evolved as India’s premier integrated financial service enterprise. Karvy has been a customer centric company since its inception. It offers a single platform servicing multiple financial instruments in its bid to offer complete financial solutions to the varying needs of both corporate and retail investors, where an extensive range of services are provided with great volume-management capability

 Karvy early days:
The birth of Karvy was on a modest scale in 1981. It began with the vision & enterprise of a small group of practicing Chartered Accountants who founded the flagship company …Karvy Consultants Limited. It started with consulting and financial 40 | P a g e

accounting automation, and carved inroads into the field of registry and share accounting by 1985. Since then, It has utilized its experience and superlative expertise to go from strength to strength…to make better services, to provide new ones, to innovate, diversify and in the process, evolved Karvy as one of India’s premier integrated financial service enterprise. Thus over the last 20 years Karvy has traveled the success route, towards building a reputation as an integrated financial services provider, offering a wide spectrum of services. And it has made this journey by taking the route of quality service, path breaking innovations in service, versatility in service and finally…totality in service. Its highly qualified manpower, cutting-edge technology, comprehensive infrastructure and total customer-focus has secured for it the position of an emerging financial services giant enjoying the confidence and support of an enviable clientele across diverse fields in the financial world. Its values and vision of attaining total competence in their servicing has served as the building block for creating a great financial enterprise, which stands solid on our fortresses of financial strength - its various companies. With the experience of years of holistic financial servicing behind it and years of complete expertise in the industry to look forward to, it has now emerged as a premier integrated financial services provider. And today, it can look with pride at the fruits of its mastery and experience – comprehensive financial services that are competently segregated to service and manage a diverse range of customer requirements. Karvy consultant is one of India’s premier investment consultancy firms offering personalized investment planning, advisory and prompt facilitation services to retail investors, corporate and institutions. It started in the year 1979 as karvy and company and later emerged as a karvy consultant to cater to specialized and personal services. The company has a long track record and history of being transparent and trust worthy with its customers.

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The flagship company, Karvy Consultants Limited was found with the vision and enterprise of a group of practicing Chartered Accountants on a modest scale in 1981 in Hyderabad, where it now has 13 branches. It initiated with just one activity and later carved roads into fields of registry and share accounting as well. From then there was no stopping at all. A decade of commitment, professional integrity and vision helped Karvy achieve a leadership position in its field. It is known to handle the largest number of issues ever in the history of the Indian stock market in a particular year. Thereafter, Karvy made inroads into a host of capital market services, corporate and retail which proved to be a sound business synergy. Today Karvy has access to millions of Indian shareholders, besides companies, banks, financial institutions and regulatory agencies. Over the past one and half decades, Karvy has involved as a veritable link between industry, finance and people. In January 1998, Karvy became the first Depository Participant in Andhra Pradesh. An ISO 9002 company, Karvy’s commitment to quality and retail reach has made it an integrated financial services company. A SEBI category 1 registrar, so far Karvy has handled over 675 issues as Registrars to public issues, processed over 52 million applications and is servicing over 16 million investors from various locations spread over 205 cities.

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 Evolution of karvy:

1979-1980 1981 - 1982 1985 - 1986 1987 -1988 1990 1994 1995 1996 1997 2002 2004 2004 2007

Karvy and company Karvy consultant ltd Foray into capital market as registrars and transfer agent First branch in Mumbai Entry into retail broking Entry into mutual fund services Corporate finance and investment banking Jardine Fleming invests in group companies First registrar in the country to be awarded ISO 9002. Launch of private client group (PCG ) desk Jv with computer share limited, Australia. merger of karvy securities ltd with karvy stock broking ltd. karvy insurance broking pvt ltd.

Karvy has traveled a success route over the past 20 years and positioned itself as an emerging financial service giant in which embeds the confidence and support of enviable patrons across the financial world. Patrons are also of diversified fields which includes over 16 million individual investors in various capacities and 300 corporate comprising the best out of the whole lot .Years of experience of holistic financial services and expertise in this industry has helped it gain the status it enjoys and cherishes today.

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VISION STATEMENT

Karvy’s aspiration of establishing itself as an integrated financial services co is propelled bya vision that is shared by the entire work force. Towards this end Karvy is dedicated itself to:
 Having a single minded focus on investor services.  Establish as a house hold name for financial services.  Set industrial standards.

MISSION
“Our mission is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising , and technology driven organization which will set the highest standards of service and business ethics”

 ACHIEVEMENTS: 44 | P a g e

 Among the top 5 stock brokers in India (4% of NSE volumes)  India's No. 1 Registrar & Securities Transfer Agents  Among the to top 3 Depository Participants  Largest Network of Branches & Business Associates  ISO 9002 certified operations by DNV  Among top 10 Investment bankers  Largest Distributor of Financial Products  Adjudged as one of the top 50 IT uses in India by MIS Asia  Full Fledged IT driven operations

 VALUES:
 Trust  Integrity  Dedication  Commitment  Transparency  Enterprise  Hard work and team play  Learning & innovation  Empathy and humility

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Figure 1 (Karvy.com)

 KARVY WINGS:

As discussed earlier, KARVY offers a single platform servicing multiple financial instruments in its bid to offer complete financial solutions to the varying needs of both corporate and retail investors. The range of products and services are provided by the following wings.

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This is the flagship company of Karvy Group and it controls the organizational affairs, channels of progress, work affairs and pioneering business policies. This was the first business the KARVY group ventured into, but now they have transferred it into a joint venture with computer share limited of Australia, the world’s largest registrar. This company services around 6 lakh customer accounts in a spread of 250 cities/towns in India.

This wing of Karvy is registered with SEBI as a category 1 merchant banker and is also recognized as a leading merchant banker of the country. It has built its reputation by capitalizing the opportunities as and when it comes, be it in corporate consolidations, mergers and acquisitions or corporate restructuring. Involvement in raising resources for corporate or government undertaking successfully over the past two decades has given it a tremendous confidence boost.

This wing of Karvy has traversed wide spaces to tie up with the world’s largest transfer Agent, the leading Australian company Computer share Limited. This company services More than 75 million shareholders across 7000 clients and makes its presence felt in over 12 countries across 5 continents. It has also entered into a 50-50 joint venture with Karvy. After transferring completely to this new entity it has tried to enrich the financial services industry as a whole. The worldwide network of Computer share helps it to 47 | P a g e

adapt to the international standards in addition to leveraging the best technologies from all over the world.

This is a specialist Business Process Outsourcing unit of the Karvy Group. The legacy of experience in financial services of Karvy Group acts as a big support for entering the global arena with confidence of delivering the best. This wing offers several models on the understanding of business needs that are unique and therefore only a customized service could possibly fit the bill. Their service matrix has permutations and combinations that create several options to choose from. Its Services meet the most stringent International standards, be it re-engineering and managing processes or delivering new efficiencies.

Karvy Commodities focuses on taking commodities trading to new dimensions of reliability and profitability. They have made commodities trading, an essentially age-old practice, into a sophisticated and scientific investment option. It helps in enabling trade in all goods and products of agricultural and mineral origin that include lucrative commodities like gold and silver and popular items like oil, pulses and cotton through a well-systematized trading platform.

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Karvy Insurance Broking Pvt. Ltd., provides both life and non-life insurance products to retail individuals, high net-worth clients and corporate. With the opening up of the insurance sector and entry of a large number of private players in the business, it is in a position to provide tailor made policies for different segments of customers.

KARVY Stock Broking Limited, one of the cornerstones of the KARVY edifice, flows freely towards attaining diverse goals of the customer through varied services. It creates a plethora of opportunities for the customer by opening up investment vistas backed by research-based advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping the customer create waves in his portfolio and empowering the investor completely is the ultimate goal. KARVY Stock Broking Limited is a member of: 1) National Stock Exchange (NSE) , 2) Bombay Stock Exchange (BSE). (Karvy.com)

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 Organization structure:

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Chapter 3

Research Methodology

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Research Methodology

OBJECTIVE OF THE STUDY:
1. To analyze the different mutual fund schemes of top 5 companies. 2. To analyze the investment pattern in mutual fund schemes (lump sump or systematic investment plan). 3. To analyze the different options of mutual funds. 4. To compare the mutual fund schemes on the basis of CORPUS, NAV (NET ASSET VALUE), and RETURNS. 5. To analyze the risk- return relationship of various schemes of mutual fund of different companies.

METHODOLOGY:
Primary and secondary data both. For primary data, I will take the help of department which deals in a mutual fund only. And for secondary data, I will take the data from the internet, brochures and magazine of karvy.

SIGNIFICANCE OF STUDY:
1. Market performance of various mutual fund schemes of top 5 companies. 2. Factors that should be considered by investor before investing in mutual funds. 3. Risk involved in sectoral investment (how much risk is there if the fund of investor is invested in a specific sector.) 4. To find out which is the best scheme of mutual fund where the amount of investor should be invested on the basis of performance of companies in past 5 years. 5. Why the investor should invest in a mutual fund schemes rather than fixed deposits or any other related schemes.

LIMITATIONS:
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1. Difficulty in finding the primary data. 2. As the data is based on the past information, so the prediction made may be not accurate. 3. As the data is provided on an approximate basis.

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CHAPTER 4 Case study
(Top 5 companies of mutual funds)

HDFC MUTUAL FUND
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HDFC Mutual Fund is governed by HDFC Asset Management Company Limited (AMC). The HDFC mutual fund was approved by SEBI in June 2000. Equity Funds, Balanced Funds, and Debt Funds are the mutual fund schemes offered by HDFC Mutual Fund.

An Overview of HDFC Mutual FundHDFC Mutual Fund has witnessed significant growth in the past few years. It is regulated by HDFC Asset Management Company Limited (AMC) which works as an Asset Management Company (AMC) for HDFC Mutual Fund. HDFC Asset Management Company Limited (AMC) is a Joint Venture concern between the large-scale housing finance company HDFC and British investment firm Standard Life Investments Limited. The HDFC Asset Management Company Limited conducts the activities carried out by the HDFC Mutual Fund and manages the assets of various mutual fund schemes. The August 2006 report states that the fund has assets of Rs. 25,892 crores under Asset Management Company (AMC). HDFC Asset Management Company Limited (AMC) entered into an agreement with Zurich Insurance Company (ZIC) with the aim to develop the asset management business in India in the year 2003. Following to this, all the mutual fund schemes of Zurich Mutual Fund in India got transferred to HDFC Mutual Fund and gained the name of HDFC schemes. Details of HDFC Mutual Fund HDFC Asset Management Company Ltd (AMC) was set up on December 10, 1999 under the Companies Act, 1956. It got the approval to function as an Asset Management Company for the HDFC Mutual Fund by SEBI on June 30, 2000. AMC was appointed in order manage the HDFC Mutual Fund. The registered office of HDFC Asset Management Company Limited (AMC) is located at Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai - 400 020. Schemes of HDFC Mutual Fund

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 HDFC Equity Fund.  HDFC Prudence Fund  HDFC Capital Builder Fund  HDFC Tax Saver  HDFC Top 200 Fund  HDFC High Interest Fund  HDFC Cash Management Fund  HDFC Sovereign Gilt Fund Equity Funds, Balanced Funds, and Debt Funds are the broad categories of mutual fund schemes offered by HDFC Mutual Fund.

Key Statistics
As on 30 April 2010 Average Asset under Management No. of investors No. of ARN certified distributors 94702.79 cr. rs 39, 37,323 34,920

Products

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Equity / Growth Fund Invest primarily in equity and equity related instruments.

Children's Gift Fund Children's Gift Fund

Debt/ Income Fund Invest in money market and debt instruments and provide optimum balance of yield, ...

Fixed Maturity Plan Invest primarily in Debt / Money Market Instruments and Government Securities...

Quarterly Interval Fund The primary objective of the Scheme is to generate regular income through investme...

Liquid Funds Provide high level of liquidity by investing in money market and debt instruments.

Exchange Traded Funds Invest primarily in equity and equity related instruments.

.

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Competitors of HDFC mutual fund

Some of the main competitors are as follows:

 ICICI Mutual Fund  Reliance Mutual Fund  UTI Mutual Fund  Birla Sun Life Mutual Fund  Kotak Mutual Fund  SBI Mutual Fund  Sundaram Mutual Fund  LIC Mutual Fund

AWARDS AND ACHIEVEMENTS
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 ICRA Mutual Fund Awards 2010


ICRA Gold Award for 'Best Performance' - Seven Star Fund Ranking

HDFC Prudence Fund has been ranked “A Seven Star Fund" and has been awarded Gold Award schemes). HDFC MF Monthly Income Plan - Long Term Plan has been ranked “A Seven Star Fund" and has been awarded Gold Award for 'Best Performance' in the category of Open Ended Marginal Equity for one year period ending December 31, 2009 (from amongst 46 schemes). for 'Best Performance' in the category of Open Ended Balanced for one year period ending December 31, 2009 (from amongst 24

HDFC High Interest Fund - Short Term Plan has been ranked “A Seven Star Fund" and has been awarded Gold Award for 'Best Performance' in the category of Open Ended Debt - Short Term for three year period ending December 31, 2009 (from amongst 17 schemes).



ICRA Five Star Fund Ranking

HDFC Multiple Yield Fund - Plan 2005 has been ranked “A Five Star Fund” indicating performance among top 4.6% in the category of Open Ended Marginal Equity for one year period ending December 31, 2009 (from amongst 46 schemes).

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HDFC MF Monthly Income Plan - Long Term Plan has been ranked “A Five Star Fund” indicating performance among top 4.6% in the category of Open Ended Marginal Equity for three year period ending December 31, 2009 (from amongst 43 schemes). HDFC Cash Management Fund - Savings Plan has been ranked “A Five Star Fund” indicating performance among top 4.6% in the category of Open Ended Liquid for one year period ending December 31, 2009 (from amongst 29 schemes).



Lipper Fund Awards 2010
‘Best (from

HDFC Equity Fund - Growth Option was awarded the Fund over Ten Years’ in the ‘Equity India’ Category amongst 53 schemes) for the 10 year period ending December 31, 2009 at Lipper Fund Awards 2010 (India).

HDFC Prudence Fund – Growth Option was awarded the “Best Fund for over Five years” in the ‘Mixed Asset INR Aggressive’ category (from amongst 24 schemes) for the 5 year period ending December 31, 2009 at Lipper Fund Awards 2010 (India). HDFC Prudence Fund - Growth Option was awarded the ‘Best Fund over Ten Years’ in the ‘Mixed Asset INR Aggressive’ category (from amongst 10 schemes) for the 10 year period ending December 31, 2009 at Lipper Fund Awards 2010 (India). HDFC MF Monthly Income Plan – Long Term Plan - Growth Option was awarded the ‘Best Fund over Three Years’ in the ‘Mixed Asset INR Conservative’ category (from amongst 58 schemes) for the 3 year period ending December 31, 2009 at Lipper Fund Awards 2010 (India).  CNBC TV18 - CRISIL Mutual Fund Awards

2010
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HDFC Top 200 Fund was among the only two schemes that won the “Best Performing Mutual Fund of the Year” Award in the Large Cap Oriented Funds category at CNBC TV18 - CRISIL Mutual Fund Awards 2010 for the calendar year 2009 (from amongst 24 schemes)

HDFC Cash Management Fund - Treasury Advantage Plan was among the only two schemes that won the “Best Performing Mutual Fund of the Year” Award # in the Ultra Short Term Debt Funds category at CNBC TV18 - CRISIL Mutual Fund Awards 2010 for the calendar year 2009 (from amongst 28 schemes).

ICICI MUTUAL FUND
ICICI Prudential Asset Management Company enjoys the strong parentage of Prudential plc, one of UK's largest 61 | P a g e

players in the insurance & fund management sectors and ICICI Bank, a well-known and trusted name in financial services in India. ICICI Prudential Asset Management Company, in a span of just over eight years, has forged a position of pre-eminence in the Indian Mutual Fund industry as one of the largest asset management companies in the country with average assets under management of Rs. 83,069.89 Crore (as of April 30, 2010). The Company manages a comprehensive range of schemes to meet the varying investment needs of its investors spread across 230 cities in the country Securities and Exchange Board of India, vide its letter no. MFD/PM/567/02 dated June 4, 2002, has accorded its approval in recognizing ICICI Bank Ltd. as a co-sponsor consequent to the merger of ICICI Ltd. with ICICI Bank Ltd. ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95 billion (US$ 100 billion) at March 31, 2008 and profit after tax of Rs. 41.58 billion for the year ended March 31, 2008. ICICI Bank is second amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalization Free float holding excludes all promoter holdings, strategic investments and cross holdings among public sector entities. The Bank has a network of about 1,308 branches and 3,950 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Unites States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

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Headquartered in London, Prudential plc and its affiliated companies together constitute one of the world's leading financial services groups. Prudential provides insurance and financial services in a number of markets around the world, including in Asia, the US, the UK, Europe and the Middle East. Founded in 1848, the company has £249 billion in funds under management (as of 31 December 2008) and more than 21 million customers worldwide.

Prudential has been writing life insurance in the United Kingdom for 160 years and has had the largest long-term fund in the United Kingdom, for over a century. In the United Kingdom, Prudential is a leading retirement savings and income solutions and life assurance provider. M&G is Prudential's fund management business in the United Kingdom and Europe, with almost £140 billion in funds under management (as of 31 December 2008). In the United States, Jackson National Life, which we acquired in 1986, is one of the largest life insurance companies providing retirement savings and income solutions.

In Asia, Prudential is the leading Europe-based life insurer in terms of market coverage and number of top three ranking positions. It is also one of the largest and most successful fund managers in Asia with more top five market rankings than any other regional player. Today, Prudential has life insurance and fund management operations spanning 13 diverse markets in Asia.

Prudential plc is incorporated and with its principal place of business in the United Kingdom. It is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States.

Key indicators
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At inception - May 1998 Average Assets Under Rs. 160 Crore Management Number of Funds Managed 2

As on April 30, 2010 Rs. 83,069.89 Crore 40

Schemes
Some of the schemes are as follows:  ICICI Prudential Balanced Plan-Growth Option  ICICI Prudential Gilt Fund-Investment-Growth  ICICI Prudential Gilt Fund-Treasury-Growth  ICICI Prudential Tax Plan-Growth Option

Competitors of ICICI mutual fund

Some of the main competitors are as follows:  HDFC Mutual Fund  Reliance Mutual Fund  UTI Mutual Fund  Birla Sun Life Mutual Fund

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 Kotak Mutual Fund  SBI Mutual Fund  Sundaram Mutual Fund  LIC Mutual Fund

Awards and achievements
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 CNBC TV18 - CRISIL Mutual Fund Awards 2010

Debt fund house of the year
 Lipper Fund Awards 2010

ICICI Prudential dynamic plan Mixed asset INR flexible
 ICRA Mutual Fund Awards 2010

ICICI Prudential tax plan Open ended equity - tax planning

RELIANCE MUTUAL FUND
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Reliance Mutual Fund (RMF) is one of India’s leading Mutual Funds, with Average Assets under Management (AAUM) of Rs. 1, 01,320 Crores and an investor count of over 74 Lakh folios. (AAUM and investor count as of June 2010).

Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one of the fastest growing mutual funds in the country. RMF offers investors a well-rounded portfolio of products to meet varying investor requirements and has presence in 159 cities across the country. Reliance Mutual Fund constantly endeavors to launch innovative products and customer service initiatives to increase value to investors. "Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Limited., a subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-up capital of RCAM, the balance paid up capital being held by minority shareholders." Reliance Capital Ltd. is one of India’s leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital Ltd. has interests in asset management, life and general insurance, private equity and proprietary investments, stock broking and other financial services.

It is one of the fastest growing mutual funds in India having doubled its assets over the last one year. In March, 2006, the Reliance mutual fund emerged as the largest private sector fund house in the country, overtaking Prudential ICICI which has been holding that position for many years. The sponsor of the fund is Reliance Capital Limited, the financial services arm of ADAG. Reliance Capital Asset Management Limited, a wholly owned subsidiary of Reliance Capital Limited, acts as the AMC to the fund. Directors of the company include Amitabh Jhunjhunwala, a senior executive of ADAG. Amitabh Chaturvedi is the managing director of the AMC.

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As of end August 2006, Reliance mutual fund has Rs 28,753 crore of assets under management. Reliance Equity Fund, launched by Reliance MF in early 2006, is the largest mutual find scheme in the country with a fund size of over Rs 5,500 crore.

Our Corporate Governance Policy:
Reliance Capital Asset Management Ltd. has a vision of being a leading player in the Mutual Fund business and has achieved significant success and visibility in the market. However, an imperative part of growth and visibility is adherence to Good Conduct in the marketplace. At Reliance Capital Asset Management Ltd., the implementation and observance of ethical processes and policies has helped us in standing up to the scrutiny of our domestic and international investors.

Management:
The management at Reliance Capital Asset Management Ltd. is committed to good Corporate Governance, which includes transparency and timely dissemination of information to its investors and unit holders. The Board of Directors of RCAM is a professional body, including well-experienced and knowledgeable Independent Members. Regular Audit Committee meetings are conducted to review the operations and performance of the company. Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Limited., a subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-up capital of RCAM, the balance paid up capital being held by minority shareholders. Reliance Mutual Fund (RMF) has been sponsored by Reliance Capital Ltd (RCL). The promoter of RCL is AAA Enterprises Private Limited. Reliance Capital Limited is a Non Banking Finance Company. Reliance Capital Limited is one of the India’s leading and fastest growing financial services companies, and ranks among the top three private sector financial services and banking companies, in terms of net worth. 68 | P a g e

Reliance Capital has interests in asset management and mutual funds, life and non-life insurance, private equity and proprietary investments, stock broking and other activities in the financial services sector. Key indicators As on June 2010 Average Asset under Management No. of investors Rs. 1, 01,320 Crores 74 lakh

Schemes:
Equity/Growth Schemes The aim of growth funds is to provide capital appreciation over the medium to longterm. Such schemes normally invest a major part of their corpus in equities. Such funds have Comparatively high risks. These schemes provide different options to the investors like Dividend option, capital appreciation, etc. and the investors may choose an option Depending on their preferences. The investors must indicate the option in the application Form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.

Debt /income schemes The aim of income funds is to provide regular and steady income to investors. Such 69 | P a g e

schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations. Sector Specific Schemes These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time. They may also seek advice of an expert.

Exchange Traded Funds (ETFs) Exchange Traded Funds (ETFs) are usually passively managed mutual fund schemes tracking a benchmark index and reflect the performance of that index. These schemes are listed on the stock exchange and therefore have the flexibility of trading like a share on the stock exchange. It can also be looked as a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange, thus experiencing price changes throughout the day as it is bought and sold.

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Fixed Maturity Plans (FMPs) Fixed Maturity Plans (FMPs) are basically debt oriented investment schemes with a prespecified tenure offered by mutual funds. FMPs invest in a portfolio of debt instruments whose maturity coincides with the maturity of the concerned FMP. The primary objective of a FMP is to generate income while aiming to protect the capital by investing in a portfolio of debt and money market securities. Since FMPs are available with several maturity options, one can invest in the relevant plan depending upon his investment horizon and the requirement of cash flows.

Competitors of Reliance mutual fund

Some of the main competitors are as follows:

 ICICI Mutual Fund  HDFC Mutual Fund  UTI Mutual Fund  Birla Sun Life Mutual Fund  Kotak Mutual Fund  SBI Mutual Fund  Sundaram Mutual Fund

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 LIC Mutual Fund

Awards and achievements

 Reliance Capital Asset Management Limited has won the prestigious US based, 2010 CIO 100 award. The 2010 CIO 100 Awards is presented by the CIO magazine & honors 100 companies worldwide that are creating new business value by innovating with technology.  Vinay Nigudkar, CTO, Reliance Capital Asset Management Limited has been awarded this honor for implementation of the CRM next System that integrates sales force automation, lead management, customer service and other sales and analysis applications.

 CNBC TV18 - CRISIL Mutual Fund of the Year

Award for 2009:

Reliance Mutual Fund has won the ‘CNBC TV18 - CRISIL Mutual Fund of the Year’ Award in the Category – Mutual Fund House of the Year (Awarded by CRISIL Fund Services, CRISIL Limited)  Asia Manager for the year 2009:

Reliance Capital Asset Management Limited has been awarded “Asset Manager for

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the year 2009” i.e. from July 2008 to July 2009 at Asia Risk Awards 2009 by Incisive Media Publishing Limited

INTRODUCTION TO SBI MUTUAL FUND
SBI Funds Management Pvt. Ltd. is one of the leading fund houses in the country with an investor base of over 4.6 73 | P a g e

million and over 20 years of rich experience in fund management consistently delivering value to its investors. SBI Funds Management Pvt. Ltd. is a joint venture between 'The State Bank of India' one of India's largest banking enterprises, and Sociate general Asset Management (France), one of the world's leading fund management companies that manages over US$ 500 Billion worldwide. Today the fund house manages over Rs 28500 crores of assets and has a diverse profile of investors actively parking their investments across 36 active schemes. In 20 years of operation, the fund has launched 38 schemes and successfully redeemed 15 of them, and in the process, has rewarded our investors with consistent returns. Schemes of the Mutual Fund have time after time outperformed benchmark indices, honored us with 15 awards of performance and have emerged as the preferred investment for millions of investors. The trust reposed on us by over 4.6 million investors is a genuine tribute to our expertise in fund management. SBI Funds Management Pvt. Ltd. serves its vast family of investors through a network of over 130 points of acceptance, 28 Investor Service Centers, 46 Investor Service Desks and 56 District Organizers.SBI Mutual is the first bank sponsored fund to launch an offshore fund – Resurgent India Opportunities Fund. Growth through innovation and stable investment policies is the SBI MF credo.

PRODUCTS OF SBI MUTUAL FUND  Equity schemes
The investments of these schemes will predominantly be in the stock markets and endeavor will be to provide investors the opportunity to benefit from the higher returns which stock markets can provide. However they are also exposed to the volatility and attendant risks of stock markets and hence should be chosen only by such investors who have high risk taking capacities and are willing to think long term. Equity Funds include diversified Equity Funds, Sectoral Funds and Index Funds. Diversified Equity Funds invest in various stocks across different sectors while sectoral funds which are specialized Equity Funds restrict their investments only to shares of a particular sector and hence, are riskier than Diversified Equity Funds. Index Funds invest passively only

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in the stocks of a particular index and the performance of such funds move with the movements of the index. Some of the schemes are:  Magnum COMMA Fund  Magnum Equity Fund  Magnum Global Fund  Magnum Index Fund  Magnum Midcap Fund  Magnum Multicap Fund  Magnum Multiplier plus 1993  Magnum COMMA Fund  Magnum Equity Fund  Magnum Global Fund

 Debt schemes
Debt Funds invest only in debt instruments such as Corporate Bonds, Government Securities and Money Market instruments either completely avoiding any investments in the stock markets as in Income Funds or Gilt Funds or having a small exposure to equities as in Monthly Income Plans or Children's Plan. Hence they are safer than equity funds. At the same time the expected returns from debt funds would be lower. Such investments are advisable for the risk-averse investor and as a part of the investment portfolio for other investors. Some of the shemes are :  Magnum Children Gilt Fund  Magnum Gilt Fund  Magnum Insta Cash Fund  Magnum Income Fund- Floating Rate Plan 75 | P a g e

 Magnum Income Plus Fund  Magnum Insta Cash Fund -Liquid Floater Plan  Magnum Monthly Income Plan  Magnum Monthly Income Plan - Floater  Magnum NRI Investment Fund  SBI Premier Liquid Fund

 BALANCED SCHEMES Magnum Balanced Fund invests in a mix of equity and debt investments. Hence they are less risky than equity funds, but at the same time provide commensurately lower returns. They provide a good investment opportunity to investors who do not wish to be completely exposed to equity markets, but is looking for higher returns than those provided by debt funds.  · Magnum Balanced Fund

Competitors of SBI mutual fund

Some of the main competitors are as follows:

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 ICICI Mutual Fund  HDFC Mutual Fund  UTI Mutual Fund  Birla Sun Life Mutual Fund  Kotak Mutual Fund  Reliance Mutual Fund  Sundaram Mutual Fund  LIC Mutual Fund

Birla sun life mutual fund
Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment managers of Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun Life 77 | P a g e

Financial Services Inc. of Canada. The joint venture brings together the Aditya Birla Group's experience in the Indian market and Sun Life's global experience. Established in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading flagships of Mutual Funds business managing assets of a large investor base. Our solutions offer a range of investment options, including diversified and sector specific equity schemes, fund of fund schemes, hybrid and monthly income funds, a wide range of debt and treasury products and offshore funds. Birla Sun Life Asset Management Company has one of the largest team of research analysts in the industry, dedicated to tracking down the best companies to invest in. BSLAMC strives to provide transparent, ethical and research-based investments and wealth management services Birla Sun life Mutual Fund is one of India's leading mutual funds with assets of over Rs.17,098 crore under management as of Aug 2006. Birla Sun life AMC provides investors a range of 18 investment options, which include diversified and sector specific equity schemes, a wide range of debt and treasury products, and two offshore funds. Both the sponsors have equal stakes in the AMC.

In recognition to its high quality investment products, Birla Sun Life AMC became India's first asset management company to be awarded the coveted ISO 9001:2000 certification by DNV Netherlands.

Heritage

The Aditya Birla Group
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The Aditya Birla Group is one of India's largest business houses. Global in vision, rooted in Indian values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. The Group's operations span 66 state of the art, straddling India, Thailand, Malaysia, Indonesia, Egypt, Philippines, Canada, Australia and China. A US $28 billion corporation with a market cap. of US $31.5 billion and in the League of Fortune 500, the Aditya Birla Group is anchored by an extraordinary work force of 130,000 employees, belonging to 30 different nationalities. Over 50 per cent of its revenues flow from its operations across the world. The Aditya Birla Group is a dominant player in all its areas of operations viz; Aluminium, Copper, Cement, Viscose Staple Fibre, Carbon Black, Viscose Filament Yarn, Fertilisers, Insulators, Sponge Iron, Chemicals, Branded Apparels, Insurance, Mutual Funds, Software and Telecom. The Group has strategic joint ventures with global majors such as Sun Life (Canada), AT&T (USA), the Tata Group and NGK Insulators (Japan), and has ventured into the BPO sector with the acquisition of TransWorks, a leading ITES/BPO company.

Sun Life Financial
Sun Life Financial Inc is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial Inc and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.

Philosophy

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Birla Sun Life Asset Management Company follows a long-term, fundamental research based approach to investment. The approach is to identify companies, which have excellent growth prospects and strong fundamentals. The fundamentals include the quality of the company’s management, sustainability of its business model and its competitive position, amongst other factors.

Vision
To be a leader and role model in a broad based and integrated financial services business.

Mission
To consistently pursue investor's wealth optimization by:

 Achieving superior and consistent investment results.  Creating a conducive environment to hone and retain talent.  Providing customer delight.  Institutionalizing system-approach in all aspects of functioning.  Upholding highest standards of ethical values at all times.

Schemes
 Birla Sun Life Short Term Opportunities Fund-Retail Growth Plan (Plan B)  Birla Sun Life Dynamic Bond Fund-Retail Plan-Growth  Birla Sun Life Income Plus (Growth)  Birla Sun Life Ultra Short Term Fund- Retail Plan B(Growth 80 | P a g e

 Birla Sun Life Advantage Fund-Plan B (Growth)  Birla Sun Life Dividend Yield Plus-Plan B (Growth)  Birla Sun Life Index Fund-Plan B (Growth)

Competitors of Birla sun life mutual fund

Some of the main competitors are as follows:

 ICICI Mutual Fund  HDFC Mutual Fund  UTI Mutual Fund  Reliance Mutual Fund  Kotak Mutual Fund  SBI Mutual Fund  Sundaram Mutual Fund

Awards and Achievements

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 .LIPPER Awards India 2009 Birla Sun Life Mutual Fund: Best Group over 3 years (2005-2008). Birla Sun Life Asset Allocation Fund-Moderate Plan-Growth (BSLAAF-MP-GR): Best Fund – 3 year performance (2005-2008),

Birla Sun Life Income Fund-Growth (BSLIF-Gr): Best Fund - 3 year performance (2005-2008) & 10 year performance (1998 – 2008).

ICRA Mutual Fund Awards 2009

Birla Sun Life Mutual Fund – “Star Fund House of the Year – Debt”: Birla Sun Life Mutual Fund won Star Fund House of the Year by ICRA Mutual Fund Awards 2009 in the Debt Category.

CNBC TV18 - CRISIL Mutual Fund of the Year Award for 2008.

Birla Sun Life Mutual Fund, Category - Mutual Fund House of the Year, out of 27 fund houses. Fund Houses winning at least two awards for their schemes in the category level awards for 2008 were considered for the award based on consistency of fund house's performance across various scheme categories in the four quarterly CRISIL CPR rankings released during the calendar year 2008. Birla Sun Life Mutual Fund, Category – Debt Fund House of the Year, out of 27 Fund houses. The award is based on consistency of fund house’s performance across the Gilt, Income, Income – Short, Liquid – Retail, Liquid – Institutional, Liquid – Super 82 | P a g e

Institutional, MIP (Aggressive & Conservative) and Liquid Plus categories in the four quarterly CRISIL CPR rankings released during the calendar year 2008. . Birla Sun Life Income Fund (Income Category) 17 schemes: Only Winner. Birla Sun Life Ultra Short Term Fund - Retail (Income – Short Term Funds) 15 schemes: Only Winner.

Birla Sun Life Gilt Plus –Regular Plan (Gilt Category) 11 schemes: Only Winner. Schemes present in all four quarterly CRISIL CPRs were considered for the award. The award is based on consistency of the scheme’s performance in the four quarterly CRISIL CPR rankings released during the calendar year 2008.

Schemes of the top 5 companies of mutual funds
 On the basis of LARGE CAP

HDFC Top 200 Fund (G)

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Value Research Rating*

Investment Objective
To generate long term capital appreciation from a portfolio of equity and equity-linked instruments primarily drawn from the companies in BSE 200 index.

Basic Scheme Information
Nature of Scheme Inception Date Option/Plan Open Ended Growth Scheme October 11, 1996 Dividend Option, Growth Option. The Dividend Option offers Dividend Payout and Reinvestment Facility. Entry Load (purchase / additional purchase / switch-in) NIL (With effect from August 1, 2009)

Exit Load (as a % of the Applicable NAV)



In respect of each purchase / switch in of units, an Exit Load of 1.00% is payable if Units are redeemed / switched-out within 1 year from the date of allotment..



No Exit Load is payable if Units are redeemed / switched-out after 1 year from the date of

Minimum Application Amount Lock-In-Period

allotment. For new investors: Rs.5000 and any amount thereafter. For existing investors: Rs. 1000 and any amount thereafter. Nil

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Net Asset Value Periodicity

Every Business Day.

Redemption Proceeds Tax Benefits (As per present Laws) Current Expense Ratio (#) (Effective Date 22nd May 2009)

Normally dispatched within 3 Business days -

On the first 100 crores average weekly net assets 2.50% On the next 300 crores average weekly net assets 2.25% On the next 300 crores average weekly net assets 2.00% On the balance of the assets 1.75%

Plan Name
Dividend Option Growth Option

NAV Date
11 Jul 2010 11 Jul 2010 -

NAV Amount

Investment Pattern
The asset allocation under the Scheme will be as follows:

Sr.No. Asset Type 1 Equities and Equity Related Instruments

(% of Portfolio)

Risk Profile

Up to 100% (including use of Medium to High derivatives for hedging and other uses as permitted by prevailing SEBI Regulations)

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2

Debt & Money Balance in Debt & Money Market Low to Medium Market Instruments Instruments



Investment in Securitised debt, if undertaken, would not exceed 20% of the net assets of the scheme.

The Scheme may also invest up to 25% of net assets of the Scheme in derivatives such as Futures & Options and such other derivative instruments as may be introduced from time to time for the purpose of hedging and portfolio balancing and and other uses as may be permitted under the regulations and guidelines.

The Scheme may also invest a part of its corpus, not exceeding 40% of its net assets, in overseas markets in Global Depository Receipts (GDRs), ADRs, overseas equity, bonds and mutual funds and such other instruments as may be allowed under the Regulations from time to time.

Subject to the Regulations and the applicable guidelines, the Scheme may, engage in Stock Lending activities. Also refer to Section on Stock Lending by the Fund. If the investment in equities and related instruments falls below 65% of the portfolio of the Scheme at any point in time, it would be endeavoured to review and rebalance the composition. Notwithstanding anything stated above, subject to the regulations, the asset allocation pattern indicated above may change from time to time, keeping in view market conditions, market opportunities, applicable regulations and political and economic factors. It may be clearly understood that the percentages stated above are only indicative and are not absolute and that they can vary substantially depending upon the perception of the AMC, the intention being at all times to seek to protect the NAV of the scheme. Such changes will be for short term and defensive considerations. The Trustee may from time to time at their absolute discretion review and modify the 86 | P a g e

strategy, provided such modification is in accordance with the Regulations or in the event of a discontinuation of or change in the compilation or the constituents of the BSE 200 Index.

Provided further and subject to the above, any change in the asset allocation affecting the investment profile of the Scheme and amounting to a change in the Fundamental Attributes of the Scheme shall be effected in accordance with sub-regulation (15A) of regulation 18 of SEBI regulations.

Investment Strategy
The investment strategy of primarily restricting the equity portfolio to the BSE 200 Index scrips is intended to reduce risks while maintaining steady growth. Stock specific risk will be minimised by investing only in those companies / industries that have been thoroughly researched by the investment manager's research team. Risk will also be reduced through a diversification of the portfolio .

Fund Manager
Mr. Prashant Jain (since Jun19, 03)* Mr. Anand Laddha - Dedicated Fund Manager - Foreign Securities

Portfolio - Holdings (as on May 31, 2010)

Company EQUITY & EQUITY RELATED State Bank of India Infosys Technologies Ltd. ICICI Bank Ltd. Oil & Natural Gas Corporation Ltd. 87 | P a g e

Industry+

% NAV 6.97 5.34 4.43 4.34

to

Banks Software Banks Oil

Bank of Baroda Larsen & Turbo Ltd. ITC Ltd. Reliance Industries Ltd. GAIL (India) Ltd. LIC Housing Finance Ltd. Total of Top Ten Equity Holdings Total Equity & Equity Related Holdings

Banks Construction Project Consumer Durables Petroleum Products Gas Finance

4.04 3.79

Non 3.56 3.49 3.03 2.81 41.80 96.81

Total Money Market Instrument & Other Credit Exposures (aggregated holdings in a single issuer) Cash margin / Earmarked cash for Futures & Options Other Cash, Cash Equivalents and Net Current Assets Grand Total Net Assets (Rs. In Lakhs)

0.00

0.09 3.10 100.00 802046.38

Returns
HDFC Top 200 (NAV as at evaluation date 31-May-2010, Rs. 184.857 Per unit) Fund Date Period NAV Per Returns (%) $ Benchmark Unit (Rs.) $^ Returns (%) # March 30, 2007 Last 1158 days 104.504 19.69** 10.75** November 30, Last Six months 176.161 2009 (182 days) May 29, 2009 Last 1 Year (367 139.341 88 | P a g e 4.94* 32.46** 2.22* 21.27**

days) May 31, 2007 Last 3 Years (1096 days) May 31, 2005 Last 5 Years (1826 days) May 31, 2000 Last 10 Years (3652 days) October 11, Since Inception 1996 (4980 days)

119.0960 54.931 15.830 10.000

15.77** 27.45** 27.84** 25.65**

6.81** 19.32** 16.5** 15.16**

Sip returns
SIP Investments Since Inception 10 Year 120,000 663,189.8 2 32.14% 20.99% 363,184.6 5 5 Year 60,000 103,544. 52 22.00% 13.91% 84,977.3 5 3 Year 36,000 50,769.96 23.70% 14.35% 44,536.58 1 Year 12,000 13,295.86 20.76% 12.16% 12,768.34

Total Amount 164,000 Invested (Rs.) Market Value as on 1,372,043.15 May 31, 2010 (Rs.) Returns 27.88% (Annualised)*(%) Benchmark 17.74% Returns (Annualised)(%)# Market Value of 615,597.73 SIP in Benchmark#

Past performance may or may not be sustained in the future Inception Date of HDFC Top 200 Fund is October 11, 1996 * Load is not taken into consideration and the Returns are of Growth Plan / Option. Investors are advised to refer to the Relative Performance table furnished as above for non-SIP returns

# Benchmark - BSE 200
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Disclaimer: The above investment simulation is for illustrative purposes only and should not be construed as a promise on minimum returns and safeguard of capital. The AMC / Mutual Fund is not guaranteeing or promising or forecasting any returns. SIP does not assure a profit or guarantee protection against a loss in a declining market. Please refer SIP Enrolment Form or contact nearest ISC for SIP Load Structure. Period 1 mth 3 mths 6 mths Returns (%) 2.9 7.7 9.3 Rank # 123 42 49

1 year 30.7 107 2 year 29.2 29 3 year 16.1 8 5 year 27.4 1 Assuming that you invested in this scheme on 16-07-2009 at an NAV of Rs. 144.121, your gain today is 37.66%.

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ICICI Pru Discovery Fund (G)
Value Research Rating*

ICICI Prudential Discovery Fund offers an alternative value investing style that helps you truly balance your equity portfolio. The value philosophy focuses on discovering stocks that have high potential, but are currently lying low at a discount to their inherent value. ICICI Prudential Discovery Fund seeks to invest in companies that are well managed and fundamentally strong, picked based on in depth research. As these companies are bought at a discount to their fair value, there is a margin of safety in the value portfolio. The stocks selection is based on a bottom up approach backed by an in depth research evaluating several parameters such as Price / Earning, Price / Book Value and Dividend Yield. Focus is on stocks that are selling at discounted prices to their inherent value. The portfolio is intended to be well diversified across sectors to reduce risk. ICICI Prudential Discovery Fund offers the following key benefits:  It aims to discover stocks at a discount to their fair value. This provides a margin of safety over the long term.  It diversifies your existing equity portfolio. An investor, who diversifies across growth and value portfolios, can reduce volatility.

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Performance for the fund in the graph below:

This fund is ideal for:  For investors with a long term horizon of atleast 3-5 years seeking long term capital appreciation through a disciplined process of selecting stocks available at a discount to their fair value.  Investors in growth plans who are looking to further diversify their portfolios by investing in a value fund.
 Investors who like the value strategy of bargain hunting for intrinsically good stocks.

Key Features Type Investment Pattern Investment Objective

ICICI Prudential Discovery Fund Open-ended Equity Fund Equity & Equity related securities 80% to 100%, Cash & Money Market instruments 0% to 20%. To generate returns through a combination of dividend income and capital appreciation by investing primarily in a well-diversified portfolio of value stocks. Value

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stocks are those, which have attractive valuations in relation to earnings or book value or current and/or future dividends. Options Growth & Dividend and Institutional Option I(Growth) Default Option Dividend Reinvestment. Application Amount Rs.5,000/- (plus in multiples of Re. 1),Rs. 1,00,000 for Min. institutional option I (plus in multiples of Re. 1). Additional Rs.500/- and in multiples thereof.Instituional Option I: Rs.10,000/-. Nil. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors' assessment of various factors including Exit Load the service rendered by the distributor. ;A) Lumpsum Investment Option : (a) 1% of applicable NAV if the amount sought to be redeemed or switched out is invested upto 1 year from the date of allotment. (b) Nil if the amount sought to be redeemed or switched out is invested for more than 1 year from the date of allotment. B) SIP/STP Option: (a) 1% of applicable NAV if the amount sought to be redeemed or switched out is invested upto 2 year from the date of allotment.(b)Nil if the amount sought to be redeemed or switched out is invested for more than 2 years from the date of Redemption Cheques Issued Minimum Redemption Amt. Systematic Investment Plan allotment. Generally Within 3 business day for Specified RBI locations and additional 3 Business Days for Non-RBI locations Rs. 500/Monthly: Minimum Rs. 1000 + 5 post-dated cheques for a miminum of Rs. 1000 each. Quarterly: Minimum Rs.5000 + 4 post-dated cheques of Rs. 5000 each. 93 | P a g e

Investment Entry Load

Systematic Withdrawal Plan Recurring Expenses Investment

Minimum of Rs.500/- and Multiples thereof

1.25%

Mangmt. Exp. Other Recurring 1.25% Expenses Total 2.50%

Period 1 mth 3 mths 6 mths 1 year 2 year 3 year 5 year

Returns (%) 2.4 7.0 9.8 63.6 40.7 17.3 23.4

Rank # 149 56 44 6 2 6 24

Assuming that you invested in this scheme on 16-07-2009 at an NAV of Rs. 27.780, your gain today is 68.79%.

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Reliance Vision Fund - Retail Plan (G)
Value Research Rating
Reliance Vision Fund was launched in October 1995, with an objective to achieve long term growth of capital. One of the flagship schemes of Reliance Mutual Fund, Reliance Vision Fund focuses on companies with Large size capitalization with a small exposure to companies with a Mid size capitalization.

Investment Philosophy
 Aiming at consistent performance.  Predominant focus on large- size capitalization stocks.  Small exposure to mid – size capitalization companies.

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 Both top – down and bottom – up investing approaches are followed.

Investment Objective:
The primary investment objective of the Scheme is to achieve long-term growth of capital by investment in equity and equity related securities through a research based investment approach. Fund Manager: Mr. Ashwani Kumar Plans Available: Retail Plan & Institutional Plan Each of the above Plan will have Growth Plan & Dividend Plan as specified below:
• •

Growth Plan : Growth Option & Bonus Option Dividend Plan : Dividend Pay-out Option & Dividend Reinvestment Option

Benchmark Index: BSE 100 Minimum Application Amount Retail Plan: Rs 5000 and in multiples of Re. 1 thereafter Institutional Plan: Rs. 5 Crore in multiples of Re. 1 thereafter Minimum additional purchase amount Retail Plan: Rs 1000 and in multiples of Re. 1 thereafter Institutional Plan: Rs. 1 Lakh in multiples of Re. 1 thereafter Asset Allocation: Under Normal Circumstances the anticipated asset allocation is as under Instrument Indicative asset allocation Risk Profile

(% of total assets)

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Equity

and

Equity

Maximum related 100% 30% 10%

Minimum 60% 0% 0%

High Low Medium Low to

Instruments Debt Instruments Money Market Instruments

Performance as on 30/06/2010 Absolute 6 months Reliance Vision Fund - 5.74 Retail Plan - Growth BSE100 2.87

1 Year 35.29 24.71

Compound Annualized 3 Years 5 Years Since 8.57 7.46 23.73 19.95 Inception 24.92

Latest NAVs
Scheme Current Nav Date 16-Jul-10 16-Jul-10 16-Jul-10 6-Apr-10 16-Jul-10 16-Jul-10

NAV Dividend Plan 44.2971 Growth Plan Bonus Option 45.606 Growth Plan Growth Option 271.5586 Institutional Plan - Bonus 10 Plan Institutional Plan - Dividend 248.9883 Plan Institutional Plan - Growth 271.0738 Plan

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Dividend history

Period 1 mth 3 mths 6 mths 1 year 2 year 3 year 98 | P a g e

Returns (%) 3.4 7.6 6.7 34.0 23.5 7.2

Rank # 93 44 79 94 64 80

5 year

22

37

Assuming that you invested in this scheme on 16-07-2009 at an NAV of Rs. 193.223, your gain today is 40.54%.

SBI Magnum Global Fund (G)
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Value Research Rating* Investment Objective
To provide the investors maximum growth opportunity through well researched investments in Indian equities, PCDs and FCDs from selected industries with high growth potential and Bonds.

Asset Allocation
Instrument Equity, Partly Convertible Debentures, Fully Convertible Debentures & Bonds Money Market instruments ^ 0-20% Low % of Portfolio of Plan A & B 80-100% Risk Profile Medium to High

^ Money Market Instruments will include Commercial Paper, Commercial Bills, Certificate of Deposit, Treasury Bills, Bills Rediscounting, Repos, Government securities having an unexpired maturity of less than 1 year, call or notice money, usance bills and any other such short-term instruments as may be allowed under the regulations prevailing from time to time.

Scheme Highlights
1. An open-ended equity scheme investing in stocks from selected industries with

high growth potential.
2. Minimum Investment Rs. 2000 and in multiples of Rs. 1000 with Dividend and

Growth options available.

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Launch Date Minimum Application

September 30, 1994 Rs. 2000 and in multiples of Rs. 1000. For Non-Resident Indians minimum application amount is Rs. 3000 and in multiples of Rs 1000 NA
1) For exit within 1 year from the date

Entry Load Exit Load

of allotment - 1 %.
2) For exit after 1 year from the date of

SIP

allotment - Nil SWP Rs 500/month - 12 months, Rs 1000/month - 6 months, Rs 1500/quarter 12 months A minimum of Rs 500 can be withdrawn every month or quarter by issuing advance instructions to the Registrars at any time.

SWP

NAV Detail Plan Growth Plan Dividend Plan Latest NAV 54.98 30.74 Date 16/07/2010 16/07/2010

Period 1 mth 3 mths 6 mths 1 year 2 year 3 year 5 year 101 | P a g e

Returns (%) 4.6 6.8 8.5 45.7 22.6 4.1 21.5

Rank # 48 59 56 35 75 122 41

Assuming that you invested in this scheme on 16-07-2009 at an NAV of Rs. 36.100, your gain today is 52.3%.

Birla Sun Life Frontline Equity Fund - Plan A (G)
Value Research Rating* Scheme Features
Scheme Name Nature of scheme Birla Sun Life Frontline Equity Fund An Open ended Growth Scheme

Inception Date (Date 30-Aug-2002 102 | P a g e

Of Allotment) Scheme Objective The objective of the scheme is long term growth of capital, through a portfolio with a target allocation of 100% equity by aiming at being as diversified across various industries and or sectors as its chosen benchmark index, BSE 200. The secondary objective is income generation and distribution of dividend. Asset Allocation Investment Strategy 75% - 100%: Equities & Equity related securities. 0% - 25%: Debt & Money Market instruments The Scheme will aim at being as diversified across various industries and / or sectors as its chosen benchmark index. It will target the same sectoral weights within its equity portfolio as the benchmark index on a designated day subject to some predetermined flexibility. However, the Scheme shall have the flexibility of selecting stocks within a particular sector from a wider investment universe. So while the equity component of the Scheme's portfolio will track sectoral weights of the chosen benchmark index, the stocks making up those sectoral weights in the Scheme's portfolio could be different from those comprising the relevant sectoral weights in the index. However, such stocks will be from the same sectors although they may differ from the index constituents on account of the Scheme's investment universe being wider than index stocks. Fund Manager Investor Risk Profile Investment Plans / Options Mahesh Patil Medium to High Plan A: Dividend (Reinvestment, Payout & Sweep) Growth(with or without Trigger Facility) Plan B: Dividend (Reinvestment, Payout & Sweep)

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Growth Investment Option by Choice of Plan: Plan A default Minimum subscription amount Minimum additional investment Entry Load* Exit Load Choice of Option: Dividend Reinvestment For Plan A:Rs. 5,000/- and in multiples of Re. 1/- thereafter. For Plan B:Rs. 2,00,000/- and in multiples of Re. 1/thereafter. Rs. 1,000/- and in multiples of Re. 1/- thereafter. Nil For redemption/switch-out of units within 365 days from the date of allotment: 1.00% of applicable NAV. For redemption/switch-out of units after 365 days from the date of allotment: Nil. Current Expense Ratio Benchmark Indicative Dividend Calendar 1.95% ( With effect from 18 Nov 2009 ) BSE 200 At the Discretion of Trustees.

Period 1 mth 3 mths 6 mths 1 year 2 year 3 year 5 year

Returns (%) 2.0 3.9 3.8 29.2 25.1 11.7 25.5

Rank # 182 151 135 124 53 30 6

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Assuming that you invested in this scheme on 16-07-2009 at an NAV of Rs. 61.630, your gain today is 36.75%.

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 On the basis of MID CAP

HDFC Mid-Cap Opportunities Fund (G)
Value Research Rating* Investment Objective
To generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of Small and Mid-Cap companies.

Nature of Scheme

Open Ended Growth Scheme The Scheme was initially launched as a 3 year close ended Equity Scheme with automatic conversion into an open -ended scheme upon maturity. The Scheme was converted into open-ended scheme on June 25, 2010 as per the provisions of the Scheme Information Document (SID). June 25, 2007

Inception Date

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Option/Plan

Dividend Option, Growth Option. The Dividend Option offers Dividend Payout and Reinvestment Facility.

Entry Load (purchase / additional purchase / switch-in)

NIL (With effect from August 1, 2009)

Exit Load (as a % of the Applicable NAV)

For purchase/switch-in made at the time of NFO: Nil. For purchase/switch-in made on or after June 25, 2010:


In respect of each purchase / switch-in of units, an Exit Load of 1.00% is payable if Units are redeemed / switched-out within 1 year from the date of allotment.



No Exit Load is payable if Units are redeemed / switched-out after 1 year from the date of allotment.



No Entry / Exit Load shall be levied on bonus

Minimum Application Amount Lock-In-Period Net Asset Value Periodicity

units and units allotted on dividend reinvestment. For new investors: Rs.5000 and any amount thereafter. For existing investors: Rs. 1000 and any amount thereafter. Nil Every Business Day.

Redemption Proceeds Tax Benefits (As per present Laws)

Normally dispatched within 3 Business days -

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Current Expense Ratio (#) (Effective Date 22nd May 2009)

On the first 100 crores average weekly net assets 2.50% On the next 300 crores average weekly net assets 2.25% On the next 300 crores average weekly net assets 2.00% On the balance of the assets 1.75%

Plan Name
Dividend Option Growth Option

NAV Date
18 Jul 2010 18 Jul 2010 -

NAV Amount

Investment Pattern
The asset allocation under the respective Plans will be as follows: of Sr.No. Type Instruments 1 Equity and equity related securities of Small and Mid-Cap companies of which Minimum Allocation (% of Net Assets) 75 5 70 Maximum Allocation (% of Net Assets) 100 15 5

2

Small-Cap companies Mid-Cap companies Equity and equity 0 related securities other than the above

25

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3.

Debt and Money 0 Market Securities

25

The Investment in Securitised Debt will not normally exceed 25% of the net assets of the Scheme.

The Scheme may seek investment opportunity in the ADR / GDR / Foreign Equity and Debt Securities (max. 25% of net assets). The Scheme may take derivatives position for hedging and portfolio balancing (max. 20% of the net assets) based on the opportunities available subject to SEBI Regulations.

Investment Strategy
The investment objective of the Scheme is to generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of Small and Mid-Cap companies. The Investment Manager will also seek participation in other equity and equity related securities to achieve optimal portfolio construction. The Scheme may also invest a certain portion of its corpus in debt and money market securities. Small and Mid-Cap companies offer higher return potential than large cap companies on one hand but also carry higher risk than large cap companies, particularly over the short and medium term. The following are some of the reasons why Small / Mid cap companies offer higher return potential. 1. Relatively less known by market participants / price discovery by market is not full. 2. Better growth prospects due to presence in a new segment/ area that is growing at a faster pace. 3. Ability to gain share due to new technology, better product / service etc. 4. Room for P/E multiples to expand if the company transitions from a small / mid cap to large cap, etc.

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To reduce risk, the Fund will maintain a well diversified portfolio. While the portfolio focuses primarily on a buy and hold strategy at most times, it will balance the same with a rational approach to selling when the valuations become too demanding even in the face of reasonable growth prospects in the long run. Though every endeavour will be made to achieve the objectives of the Scheme, the AMC/Sponsors/Trustees do not guarantee that the investment objectives of the Scheme will be achieved. No guaranteed returns are being offered under the Scheme. Pursuant to the SEBI Regulations, the Scheme shall not make any investment in:
• •

Any unlisted security of an associate or group company of the Sponsors; or Any security issued by way of private placement by an associate or group company of the Sponsors; or The listed securities of group companies of the Sponsors which is in excess of 25% of the net assets.



The Scheme may invest in other schemes managed by the AMC or in the schemes of any other mutual funds, provided it is in conformity with the investment objectives of the Scheme and in terms of the prevailing SEBI Regulations. As per the SEBI Regulations, no investment management fees will be charged for such investments and the aggregate inter scheme investment made by all the schemes of HDFC Mutual Fund or in the schemes of other mutual funds shall not exceed 5% of the net asset value of the HDFC Mutual Fund. The Scheme may also invest in suitable investment avenues in overseas financial markets for the purpose of diversification, commensurate with the Scheme objectives and subject to necessary stipulations by SEBI / RBI. Towards this end, the Mutual Fund may also appoint overseas investment advisors and other service providers, as and when permissible under the regulations.


Debt Investments

The Scheme will retain the flexibility to invest in the entire range of debt securities and 110 | P a g e

money market instruments. These instruments are more specifically highlighted below: Debt securities (in the form of non-convertible debentures, bonds, secured premium notes, zero interest bonds, deep discount bonds, floating rate bond / notes, securitised debt, pass through certificates, asset backed securities, mortgage backed securities and any other domestic fixed income securities including structured obligations etc.) include, but are not limited to: 1. Debt obligations of the Government of India, State and local Governments, Government Agencies and statutory bodies (which may or may not carry a state / central government guarantee), 2. Securities that have been guaranteed by Government of India and State Governments, 3. Securities issued by Corporate Entities (Public / Private sector undertakings), 4. Securities issued by Public / Private sector banks and development financial institutions.

Money Market Instruments include
1. Commercial paper 2. Commercial bills 3. Treasury bills 4. Government securities having an unexpired maturity upto one year 5. Collaterilsed Borrowing & Lending Obligations (CBLO) 6. Certificate of deposit 7. Usance bills 8. Permitted securities under a repo / reverse repo agreement 9. Any other like instruments as may be permitted by RBI / SEBI from time to time. Investments will be made through secondary market purchases, initial public offers, other public offers, placements and right offers (including renunciation). The securities could be listed, unlisted, privately placed, secured / unsecured, rated / unrated of any maturity. 111 | P a g e

The AMC retains the flexibility to invest across all the securities / instruments in debt and money market. Investment in debt securities will usually be in instruments which have been assessed as .high investment grade. by at least one credit rating agency authorised to carry out such activity under the applicable regulations. In case a debt instrument is not rated, prior approval of the Board of Directors of Trustee and AMC will be obtained for such an investment. Investment in debt instruments shall generally have a low risk profile and those in money market instruments shall have an even lower risk profile. The maturity profile of debt instruments will be selected in accordance with the AMC.s view regarding current market conditions, interest rate outlook and the stability of ratings. RISK CONTROL Investments made from the corpus of the Scheme would be in accordance with the investment objective of the Scheme and the provisions of the SEBI Regulations. The AMC will strive to achieve the investment objective by way of a judicious portfolio mix comprising of debt, money market instruments and government securities. Every investment opportunity would be assessed with regard to credit risk, interest rate risk and liquidity risk. Credit Risk A detailed credit evaluation of each investment opportunity will be undertaken. The AMC will utilise ratings of recognised rating agencies as an input in the decision making process. Investments in bonds and debentures will usually be in instruments that have been assigned high investment grade ratings by a recognised rating agency. In line with SEBI Circular No. MFD/CIR/9/120/ 2000 dated November 24, 2000, the AMC may constitute committee(s) to approve proposals for investments in unrated instruments. The AMC Board and the Trustee shall approve the detailed parameters for such investments. The details of such investments would be communicated by the AMC to the Trustee in their periodical reports. It would also be clearly mentioned in the reports, how the parameters have been complied with. However, in case any security does not 112 | P a g e

fall under the parameters, the prior approval of Board of AMC and Trustee shall be sought. Interest Rate Risk An interest rate scenario analysis would be performed on an on-going basis, considering the impact of the developments on the macro-economic front and the demand and supply of funds. Based on the above analysis, the AMC would manage the investments of the Scheme on a dynamic basis to exploit emerging opportunities in the investment universe and manage risks at all points in time. Liquidity Risk The AMC will provide liquidity by maintaining a low average duration of the portfolio and by investing in securities that would result in a staggered maturity profile of the portfolio. Liquidity will also be managed by investing in the Collaterilsed Borrowing ; Lending Obligations (CBLO) / repo market when CBLO money / repo yields are attractive relative to other money market yields. Investment in debt instruments would generally be in securities that have reasonable secondary market activity. Due to the short duration of the portfolio and the low risk product profile, the effect of volatility in debt markets on the portfolio will be limited. This permits investors to enhance their yields without compromising on the quality of the portfolio. In the event of a requirement to liquidate all or a substantial part of these investments in a very short duration of time, the AMC may not be able to realize the full value of these securities leading to an adverse impact on the Net Assets of the Scheme.

Fund Manager
Mr. Chirag Setalvad (since Apr 2, 07) Mr. Anand Laddha - Dedicated Fund Manager - Foreign Securities

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Portfolio - Holdings (as on May 31, 2010)

Company EQUITY & EQUITY RELATED Ipca Laboratories Ltd. Crompton Greaves Ltd. Patni Computer Systems Ltd Exide Industries Ltd. Hindustan Petroleum Corporation Ltd. Lupin Ltd. Carborundum Universal Ltd. Union Bank of India LIC Housing Finance Ltd. Amara Raja Batteries Ltd. Total of Top Ten Equity Holdings Total Equity & Equity Related Holdings

Industry+ Pharmaceuticals Industrial Capital Goods Software Auto Ancillaries Petroleum Products Pharmaceuticals Industrial Products Banks Finance Auto Ancillaries

% to NAV 4.73 4.01 3.55 3.20 3.04 3.00 2.96 2.77 2.67 2.54 32.47 99.15

Total Money Market Instrument & Other Credit Exposures (aggregated holdings in a single issuer) Cash, Cash Equivalents and Net Current Assets Grand Total Net Assets (Rs. In Lakhs)

0.23

0.62 100.00 123529.39

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Returns
HDFC Top 200 (NAV as at evaluation date 31-May-2010, Rs. 184.857 Per unit) Fund Date Period NAV Per Returns (%) $ Benchmark Unit (Rs.) $^ Returns (%) # March 30, 2007 Last 1188 days N.A N.A 17.2** December 30, Last Six months 2009 (182 days) June 30, 2009 Last 1 Year (365 days) June 29, 2007 Last 3 Years (1097 days) June 30, 2005 Last 5 Years (1826 days) June 30, 2000 Last 10 Years (3652 days) June 25, 2007 Since Inception (1101 days) Period 1 mth 3 mths 6 mths 1 year 2 year 3 year 5 year Returns (%) 5.3 8.8 14.9 60.5 33.2 13.2 Rank # 26 21 7 9 13 18 12.334 8.912 N.A N.A N.A 10.000 15.87* 60.36*~ N.A N.A N.A 12.57** 9.6* 49.82* 10.79** 21.57* N.A 11.68**

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Assuming that you invested in this scheme on 16-07-2009 at an NAV of Rs. 8.828, your gain today is 66.97%.

ICICI Pru Emerging S.T.A.R. Fund (G)
Value Research Rating

Objective:
To generate capital appreciation by actively investing in diversified mid cap stocks. The Scheme will invest primarily in companies that have a market capitalization between Rs. 100 crores to Rs. 2000 crores.

Scheme features

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Fund Type Investment Plan Asset Size (Rs cr)

Open-Ended Growth 450.53 (Jun-30-2010)

Minimum Investment

Rs.5000

Launch Date Benchmark

5-Oct-04 CNX Nifty Junior

Dividend

15.00 (January 22,2010)

Fund Manager

Deven Sangoi / Mrinal Singh

Entry Load Exit Load Load Comments

N.A. 1.00% Exit Load 1% if units are redeemed / switched-out within 1 year from the date of allotment. Exit Load of 1% for SIP/STP if units are redeemed / switched-out within 2 year from the date of allotment.

Latest NAV Scheme Name ICICI Prudential Emerging Star Fund - Institutional Option –I 117 | P a g e NAV (Net Asset Value) 13.94 Repurchase Price 13.8 13.94 9-Jul10 Sale Price Date

ICICI Prudential Emerging Star Fund-Dividend ICICI Prudential Emerging Star Fund-Growth

17.08 34.3

16.91 33.96

17.08 34.3

9-Jul10 9-Jul10

Performance of ICICI Pru Emerging S.T.A.R. Fund (G) Absolute Returns (as on Jul 16, 10) Period 1 mth 3 mths 6 mths 1 year 2 year 3 year 5 year Returns (%) 4.2 5.2 10 57.9 42.8 3.3 128.3 Rank # 87 132 32 16 129 146 68

Assuming that you invested in this scheme on 16-07-2009 at an NAV of Rs. 21.330, your gain today is 62.45%.

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Reliance Growth Fund - Retail Plan (G)
Value Research Rating Investment objective
The primary investment objective of the Scheme is to achieve long-term growth of capital by investment in equity and equity related securities through a research based investment approach.

Investment Philosophy
 Aiming at consistent performance.  Predominant focus on large- size capitalization stocks.  Small exposure to mid – size capitalization companies.  Both top – down and bottom – up investing approaches are followed.

Investment Objective:
The primary investment objective of the Scheme is to achieve long-term growth of capital by investment in equity and equity related securities through a research based investment approach. Fund Manager: Mr. Sunil Singhania Plans Available: Retail Plan & Institutional Plan Each of the above Plan will have Growth Plan & Dividend Plan as specified below:
• •

Growth Plan : Growth Option & Bonus Option Dividend Plan : Dividend Pay-out Option & Dividend Reinvestment Option

Benchmark Index: BSE 100 119 | P a g e

Minimum Application Amount Retail Plan: Rs 5000 and in multiples of Re. 1 thereafter Institutional Plan: Rs. 5 Crore in multiples of Re. 1 thereafter Minimum additional purchase amount Retail Plan: Rs 1000 and in multiples of Re. 1 thereafter Institutional Plan: Rs. 1 Lakh in multiples of Re. 1 thereafter Asset Allocation: Under Normal Circumstances the anticipated asset allocation is as under

Instrument

Indicative

asset

allocation Risk Profile

(% of total assets) Equity and Equity Maximum related 100% Minimum 65% 0% High Medium low to

Instruments Debt Instruments and Money 35% Market Instruments

Performance as on 30/06/2010 Absolute 6 months Reliance Growth Fund 7.74 - Retail Plan - Growth BSE100 120 | P a g e 2.87

1 Year 40.82 24.71

Compound Annualized 3 Years 5 Years Since 14.23 7.46 27.77 19.95 Inception 29.64 12.62

Latest NAVs
Scheme Dividend Plan Growth Plan Bonus Option Growth Plan Growth Option Institutional Plan - Bonus Current NAV 57.6100 77.9577 469.9711 10.0000 Nav Date 16-Jul-10 16-Jul-10 16-Jul-10 6-Apr-10 16-Jul-10 16-Jul-10

Plan Institutional Plan - Dividend 457.8463 Plan Institutional Plan - Growth 473.2120 Plan

Period 1 mth 3 mths 6 mths 1 year 2 year 3 year 5 year

Returns (%) 2.3 4.6 6.8 39.5 24.8 12.7 25.8

Rank # 156 119 75 57 57 24 5

Assuming that you invested in this scheme on 16-07-2009 at an NAV of Rs. 322.337, your gain today is 45.8%.

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SBI Magnum Midcap Fund (G)
Value Research Rating* Investment Objective
. 122 | P a g e

To provide investors with opportunities for long-term growth in capital alongwith the liquidity of an open-ended scheme by investing predominantly in a well diversified basket of equity stocks of Midcap companies. Midcap companies are those companies whose market capitalization at the time of investment is lower than the last stock in the S&P CNX Nifty Index less 20% (upper range) and above Rs. 200 crores.

Asset Allocation
Instrument Equities and equity related instruments of Midcap companies Equities and equity related instruments of other than Midcap companies Foreign Securities/ADRs/GDRs 0% - 10% High 0-20% High % of Portfolio of Plan A & B 65-100% Risk Profile High

Debt and Money Market Instruments

0 - 30%

Low

Scheme Highlights
1. Open-ended Growth scheme 2. CDSC not exceeding 1.5% for exit within 12 months from the date of reopening of the scheme 3. Minimum investment: Rs. 5000 and in multiples of Rs. 1000 123 | P a g e

4. Dividend & Growth options available. Launch Date Minimum Application Entry Load Exit Load April 15, 2005 Rs. 5000 and in multiples of Rs. 1000 NA 3) For exit within 1 year from the date of allotment - 1 %.
4) For exit after 1 year from the date of

SIP

Rs

allotment - Nil 500/month -

12

months,

Rs

1000/month - 6 months, Rs 1500/quarter SWP 12 months A minimum of Rs 500 can be withdrawn every month or quarter by issuing advance instructions to the Registrars at any time. NAV Detail Plan Growth Plan Dividend Plan Period 1 mth 3 mths 6 mths 1 year 2 year 3 year 5 year Returns (%) 3.6 0.5 -4.0 30.3 10.3 -4.9 14.6 Latest NAV 22.94 17.59 Rank # 82 231 248 110 187 167 90 Date 16/07/2010 16/07/2010

Assuming that you invested in this scheme on 16-07-2009 at an NAV of Rs. 16.680, your gain today is 37.53%.

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Birla Sun Life Midcap Fund - Plan A (G)
Value Research Rating Scheme Features
Scheme Name Nature of scheme Inception Date (Date Of Allotment) Scheme Objective Birla Sun Life Midcap Fund An Open ended Growth Scheme 3 -oct-2002 The investment objective of the scheme is long term growth of capital at controlled level of risk by investing primarily in 'Mid-Cap' Stocks. The level of risk is somewhat higher than a fund focused on large and liquid stocks. Concomitantly, the aim is to generate higher returns than a fund focused on large and liquid stocks. 125 | P a g e

Asset Allocation

Upto 65%-100% in equity and equity related instruments of Companies with a market capitalization between Rs.150 crores to Rs.1,500 crores (Mid-Cap Stocks). Upto 35% in equity and equity related instruments of companies with a market capitalisation of more than Rs.1500 crores or less than Rs.150 crores. Upto 5% in cash, deposits & money market instruments including mibor linked short term papers.

Investment Strategy

The scheme would invest a substantial portion of its investible assets (over 65%) in Mid Cap companies.This range would change in line with the change in range of the market capitalization criterion of the benchmark. In order to diversify the portfolio, the fund manager may invest upto 35% in stocks which have a higher or lower market capitalization. A small proportion of the investments would also be kept in call and money market instruments Instruments having maturity of one year or less). As a part of the investment strategy the fund would also book profits regularly in order to take advantage of the volatility (The rate of change in the price of a security over a given time) in the market.

Fund Manager Investor Risk Profile Investment Plans / Options

Mr. Sanjay Chawla Medium to High Plan A: Dividend (Reinvestment, Payout & Sweep) Growth Plan B: Dividend (Reinvestment, Payout & Sweep) Growth

Investment Option by Choice of Plan: Plan A default 126 | P a g e Choice of Option: Dividend Reinvestment

Minimum subscription amount Minimum additional investment Entry Load* Exit Load

For Plan A:Rs. 5,000/- and in multiples of Re. 1/- thereafter. For Plan B:Rs. 2,00,000/- and in multiples of Re. 1/thereafter. Rs. 1,000/- and in multiples of Re. 1/- thereafter. Nil For redemption/switch-out of units within 365 days from the date of allotment: 1.00% of applicable NAV. For redemption/switch-out of units after 365 days from the date of allotment: Nil.

Current Expense Ratio Benchmark

1.96 % (w.e.f. 08-Feb-2010) CNX Midcap

Period 1 mth 3 mths 6 mths 1 year 2 year 3 year 5 year

Returns (%) 4.3 2.7 3.1 43.7 30.2 11.3 24.2

Rank # 59 196 163 45 24 32 14

Assuming that you invested in this scheme on 16-07-2009 at an NAV of Rs. 73.750, your gain today is 50.35%.

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Chapter 5

Data Analysis

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LARGE CAP FUNDS Returns of Different Schemes:

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Among the LARGE CAP FUNDS (HDFC TOP 200) has given good return in last 5 years in comparison to other schemes.

SMALL CAP FUNDS Returns of Different Schemes:

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Among the SMALL CAP FUNDS (RELIANCE GROWTH FUND) has given good return in last 5 years in comparison to other schemes.

Findings and suggestions

 Due to lack of awareness about the mutual funds people invest less in mutual fund plans.  Money invested in mutual funds for a long period gives more returns and risk is also very less.  People should get knowledge to invest for a longer period of time.  Portfolio management should be known to every relationship manager.  People also get tax benefited by investing in ELSS mutual fund schemes. ..  PAN proof should get mandatory for very person.  It is always advisable to investors invest in mutual funds through SIP instead of lump sum, risk get minimize.

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Bibliography
Magazines: The Finapolis Brochures (Provided by Karvy Stock Broking Limited) Research reports (Provided by Karvy Stock Broking Limited) Websites: http://www.hdfcfund.com/Products/SchemeList.aspx?FundID=1eec86b8-02ff-4bc4-955758bafbcb2ae1 http://www.hdfcfund.com/Products/SchemeDetails.aspx?SchemeID=e510b986-bbdd-4f8b-9eef41fc9b20087f www.mutualfundsnavindia.com http://www.icicipruamc.com/funds1.html http://www.reliancemutual.com/OurSchemes/EquityGrowthSchemes/Reliance %20Vision%20Fund.aspx http://www.sbimf.com/Product_Details.asp?ProductId=8 http://www.investopedia.com/articles/younginvestors/10/what-is-an-investment.asp http://www.motilaloswal.com/Products/ www.indobase.com/.../prudential-icici-emerging-star-fund.php 132 | P a g e

www.sbimf.com

www.reliancemutual.com www.reliancemutual.com mutualfund.birlasunlife.com/.../BSLMidCapFund/.../Default.aspx mutualfund.birlasunlife.com/.../BSLFrontlineEquityFund/.../Default.aspx

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Investment Philosophy Benefits

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