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A study on
“ PERCEPTION OF INVESTORS TOWARDS THE
MUTUAL FUNDS IN BANGALORE”
Diss!t"tion su#$ittd in %"!ti"& 'u&'i&&$nt o' t( !)ui!$nts 'o! t(
"*"!d o' t( D+! o'
MASTER OF BUSINESS ADMINISTRATION
OF
BANGALORE UNIVERSIT,
By
MU-EEB ./M
R+ No0 12ACCM2134
Und! t( Guid"n5 o'
M!s/GHOUSIA .HATOON
AL6AMEEN INSTITUTE OF MANAGEMENT STUDIES
Hosu! Ro"d7 N"! L"&#"+( M"in G"t7 BANGALORE6821194
91146911:
CONTENTS
CHAPTERS TITLE PAGE
NO.
Chapter-1 Introduction 1
Chapter-2 Research esi!n 2"
State#ent o$ the Pro%&e# 2'
O%(ecti)es 2'
Scope 2*
Li#itations 2*
+ethodo&o!, 2*
Chapter-- Industr, . Co#pan, pro$i&e 2/
Chapter-0 Ana&,sis . Interpretations 00
Chapter-" 1indin!s 2 su!!estions.Conc&usions 31
4i%&io!raph, 3*
Anne5ure 3/
LIST OF TABLES
SL
NO.
TITLE PAGE NO.
1
Age Profile of the Respondents 0"
2
Occupation profile of the respondents 0*
-
Number of Family Dependents of the
Respondent
0/
0
Income Profile of the respondents "1
"
Awareness of Investment options among
respondents
"-
'
Investment Profile of the respondents ""
*
Reason for not investing in utual Funds "*
3
Annual investment of the respondents "/
/
Popular utual Fund Products among the
respondents
'1
16
Ran!ing of factors for Investment '-
11
Investment Opinion of respondents if the
returns are between "# $ to %#$ and above
'"
12
Investing Option among the respondents
between ris! and return
'*
1-
Awareness of utual Fund advertisements
among the respondents
'/
10
most common utual Fund &ompany
Advertisement
*1
1"
Influence of Brand among respondents while
investing in utual Fund
*-
1'
Opinion of respondents on returns in utual
Funds compared to 'hares(Derivatives
*"
1*
Investment Firm)s transparency in recent
times
**
13
Performance of funds according to
respondents
*/
LIST OF GRAPHS
SL
NO.
TITLE PAGE NO.
1
Age Profile of the Respondents
0'
2
Occupation profile of the respondents
03
-
Number of Family Dependents of the
Respondent
"6
0
Income Profile of the respondents
"2
"
Awareness of Investment options among
respondents
"0
'
Investment Profile of the respondents
"'
*
Reason for not investing in utual Funds
"3
3
Annual investment of the respondents
'6
/
Popular utual Fund Products among the
respondents
'2
16
Ran!ing of factors for Investment
'0
11
Investment Opinion of respondents if the
returns are between "# $ to %#$ and above
''
12
Investing Option among the respondents
between ris! and return
'3
1-
Awareness of utual Fund advertisements
among the respondents
*6
10
most common utual Fund &ompany
Advertisement
*2
1"
Influence of Brand among respondents while
investing in utual Fund
*0
1'
Opinion of respondents on returns in utual
Funds compared to 'hares(Derivatives
*'
1*
Investment Firm)s transparency in recent
times
*3
13
Performance of funds according to
respondents
36
HISTORICAL REVIEW OF MUTUAL FUNDS
In the ear&, co##ercia& histor,2 E!,ptians and Phoenicians so&d shares in )esse&s and
cara)ans in order to spread the ris7 o$ there )enture. On the sa#e &ines the idea o$ #utua& $und
has its $or#a& ori!in in 4e&!iu#2 here the idea 8as used in transportation o$ ships. In 1322
Societe9s Genera&e de 4e&!i:ue 8as started as $irst in)est#ent co#pan, to $inance in)est#ents
in nationa& industries 8ith hi!h associated ris7s.
Later2 in S8it;er&and and in 1rance si#i&ar a!encies too7 %irth2 sti&& &ater in 13'69s it a&so
#o)ed to En!&and2 in 13'32 the $orei!n and co&onia& !o)ern#ent trust 8as esta%&ished.
In <SA2 the idea too7 root in the %e!innin! o$ the 26 centur, and there 8as &itt&e acti)it, up-
ti&& 1/202 in 1/20 three in)est#ent co#panies 8ere or!ani;ed
• +assacheuse&&s In)est#ent Corporation.
• State Stree In)est#ent Corporation.
• <S and $orei!n securities corporation.
A&& these institutions are sti&& operatin!. In)est#ent co#panies Act o$ 1/06 8as enacted to
protect the pu%&ic in)est#ent. There are o)er "666 #utua& $und sche#es 8ith tota& assets o$ o)er
<S =1#i&&ion 8i&& pre$er to #utua& $und route to in)estin! in e:uit, instead o$ direct
participation in share #ar7et. 1ide&it, In)est#ent2 is the &ar!est $und2 the annua& !ro8th rate is
26-2"> the trend is a&#ost si#i&ar in a&& Europe.
In 1/262 it entered Canada2 Canadian In)est#ent 1und in 1/-22 8as the $irst #utua& $und in
Canada2 &ater on it spread to a&#ost a&& countries o$ the 8or&d.

In <.?2 near&, 36> o$ in)estors &oo7 to the #utua& $unds @unit trusts as the, are ca&&ed there.
The unit trust is &eadin! %an7 deposits.

+utua& $unds in the <.?. are di)ided into t8o na#e&,2
1. <nit trusts are essentia&&, open ended $unds.
2. In)est#ent trusts are c&ose ended $unds.
Aapanese Trusts are o$ t8o 7indsB
1. <nit, t,pe in)est#ent centers.
2. Open t,pe in)est#ent centers.
In Aapan in)est#ent trusts 8ere set up under the securities in)est#ent &a82 1/"1. The uni:ue
characteristic di$$erence %et8een Aapanese in)est#ent trusts and A#erican #utua& $unds is the
$act tat the #utua& $und industries in A#erica e)o&)ed in response to #ar7et needs2 8hereas the
de)e&op#ent o$ the Aapanese in)est#ent trusts has %een in response to Go)ern#ent Po&ic,. In
recent ,ears #utua& $und in Aapan and 1ar East countries ha)e %een sho8in! e5ce&&ent
per$or#ance. +auritius and Nether&ands are e#er!in! as ta5 hea)ens $or o$$ shore #utua& $unds.
HISTORY OF MUTUAL FUNDS IN INDIA
+utua& $unds entered Indian +ar7et in 1/'-. <nit trust o$ India 8as set up under the
<TI Act2 1/'-. It operates %oth as a 1inancia& Institution and as an In)est#ent Trust.
<nit sche#e '0 8as the $irst sche#e started 8ith a %asic o%(ecti)e o$ #o%i&i;in! sa)in!s
thou!h the sa&e o$ units and in)ests the# in e:uities and other securities. It o$$ered three-
di#ensiona& %ene$its na#e&, hi!h ,ie&d2 capita& appreciation and &i:uidit,.
The histor, o$ #utua& $und in India ti&& the #id 369s in )irtua&&, s,non,#ous 8ith the
histor, o$ <TI. In 1/3'2 the <TI &aunched $irst !ro8th sche#e. +aster shares 8hich 8as &isted
and treated in stoc7 e5chan!es.
The #onopo&, o$ the <TI 8as %ro7en in 1/3*. Pu%&ic sector %an7s entered the scene
8ith their #utua& $unds sche#es 8ith #uch $un $air i.e. in 1/3*2 $i)e %an7s
• State 4an7 o$ India
• Canara 4an7
• 4an7 o$ India
• Indian 4an7
• Pun(a% Nationa& 4an7
• A&on! 8ith LIC and GIC ca#e out 8ith their #utua& $unds.
+utua& $unds sponsored %, the %an7s and other pu%&ic sector $inancia& institutions
%eca#e popu&ar on account o$
• Cide net8or7 o$ co&&ection centers o$ the %an7 and other sponsorin! or!ani;ations.
• Guaranteed returns.
• Trust in the a%i&it, and re&ia%i&it, o$ the sponsors.
• Accessi%i&it, and $a#i&iarit, 8ith the sponsor %an7D or!ani;ations.
Ti&& 1//22 the scene 8as 8e&& as the stoc7 #ar7et 8as in a %oo# and share prices 8ere risin!
:uite sharp&,. So there 8as a !reat de#and $or e:uities2 the in)estors cou&d ha)e ne)er e)en
thou!ht in their 8i&dest drea#s to de&i)er. The in)estors rushed to %u, at 8hat e)er 8as on o$$er
the, 8ere not %othered a%out the ris7 associated 8ith the :ua&it, o$ the $unds on o$$er their
o%(ecti)es and trac7 records o$ the $und #ana!ers. This irrationa& action on the part o$ the
in)estors cost the# hea)i&,2 8hen the %u%%&e o$ Securities Sca# %urst in 1//22 as the rise in the
prices o$ the stoc7 8ere not %ecause o$ the %usiness per$or#ance %ut %ecause o$ handi8or7 o$
$e8 %ro7ers it 8as destined to #eet its &o!ica& tra!ic end. And 8hen this happened the #ar7et
reacted in a !reat panic2 8hich &ed prices to $a&& &i7e rune pins.
A$ter this2 SE4I issued !uide&ines to +utua& 1und Industr, in +utua& 1und Industr, in
1//- and due to the Econo#ic Re$or#s2 Pri)ate sector and $orei!n co#panies entered into this
sector.
The reasons $or pri)ate #utua& $und to enter #a,%e-
1. Poor ser)icin!2 in ordinate de&a,s in the receipt o$ unit certi$icates and di)ided
8arranties.
2. Indi$$erent per$or#ance o$ #ost o$ the #utua& $und sche#es2 8hich under per$or#ed the
#ar7et thus den,in! the in)estor2 reasona%&e returns.
-. A%sence o$ ade:uate disc&osure nor#s.
0. Lac7 o$ an in)estor $riend&, approach in !enera&.
?othari pioneer 8as the $irst pri)ates co#pan, to &aunch its #utua& $und in 1//- and
+or!an Stan&e, 8as the $irst $orei!n co#pan, to enter into the Indian #ar7et 8hich is one o$ the
8or&d9s &ar!est #utua& $unds.

4rie$&, the cate!ories o$ p&a,ers can %e di)ided into $our t,pes2 )i;
• <TI
• Pu%&ic sector %an7s
• Insurance co#panies D A&& India $inancia& institutions.
• Pri)ate sector- inc&usi)e o$ $orei!n co#panies and (oint )entures.
Pri)ate sector $unds are per$or#in! 8e&& in the #ar7et. A $und #o%i&i;ed %, pri)ate
sector is #ore than <TI and pu%&ic sector.
RESOURCES MOBILISED BY MUTUAL FUNDS
Accordin! to data a)ai&a%&e on pro)isiona& %asis2 the #utua& $unds #o%i&i;ed
Rs.22*16.*- crore 8ithout ad(ust#ent o$ repurchase rede#ption durin! the $inancia& ,ear 1//*-
1//3. Ho8e)er2 it is i#portant to note that in case o$ open ended sche#es2 there 8as a
continuous sa&e and repurchase o$ #utua& $unds2 and there 8as rede#ption o$ so#e o$ the
sche#es as specia&&, o$ unit '0 sche#e o$ <TI. Conse:uent&, in)esti%&e resources o$ #utua&
$unds dec&ined to that e5tent. Thus a$ter ad(ust#ent o$ repurchases and rede#ptions2 there 8as an
out$&o8 o$ $unds o$ Rs./0/.'* crore durin! 1//3-1///. 1urther ana&,sis o$ data sho8s that 8hi&e
there 8as a net in$&o8 o$ $unds o$ Rs.10"2.*6 crore and Rs.-1".1' crore in case o$ pri)ates
sector #utua& $unds and pu%&ic sector #utua& $unds2 respecti)e&,2 there 8as a net out$&o8 o$
Rs.2*-*."-crore in case o$ the <TI @the &ar!est #utua& $und. The out$&o8 8ou&d ha)e %een sti&&
&ar!er $or the ,ear %ut $or sharp increase in net #o%i&i;ation durin! +arch 1///. etai&s are
!i)en in the $o&&o8in! ta%&eB
Table show!" Reso#$%es Mobl&a'o! b( M#'#al F#!)s *Rs. I! %$o$e+
Pri)ate Sector +19s Pu%&ic Sector +19s <TI Grand
Tota&
Open
end
C&ose
end
Tota& Open
end
C&ose
end
Tota& Open
end
C&ose
end
Tota&
+o%i&i
-;ation
o$ 1unds
**'/."/ *'./1 *30'." -'0.1 1-6*.1 1'*1.- '326.2- '-*2.'' 1-1/2./ 22*16.*
Repur
-chase
A#ount
1161./- -'.*- 11-3.'' 2/1.3" 060.1' '/'.61 /**-.01 "0'.2' 16-1/.'* 121"0.-0
Rede#
-ption A#ount
"136./3 *0.1' "2"".10 6.2* '-/./6 '06.1* 6.66 "'16.*" "'16.*" 11"6'.6'
Net InD
Out
$&o8
o$ 1unds
103'.** -
--./3
10"2.*6 *2.6- 2'-.1- --".1' -
2/"-.13
21".'" -2*-*."- -/0/.'*
CLASSIFICATION OF MUTUAL FUNDS
4ased on ad)anta!es and ser)ices o$$ered to )arious sections o$ the societ,2 #utua& $unds
can %e c&assi$ied into three %road cate!ories. Ei;.2
• 1unctiona& C&assi$ication
• Port$o&io C&assi$ication
• Geo!raphica& c&assi$ication
FUNCTIONAL CLASSIFICATION
It is %ased on the %asis characteristics o$ the #utua& $und sche#es opened $or the pu%&ic
su%scriptionF it can %e c&assi$ied asF
A. OPEN ENDED MUTUAL FUNDS,
It is a sche#e in 8hich a in)estor can %u, and se&& units on dai&, %asis2 8here in the
sche#e ha)e perpectua& e5istence and a $&e5i%&e e)er chan!in! corpus. In)estors are $ree to %u,
and se&& an, nu#%er o$ units at an, point o$ ti#e2 at prices2 8hich are &in7ed2 to NAE o$ the
units. As the NAE chan!es 8ith ti#e2 so do the prices at 8hich the in)estors can %u, and se&&
these units it !i)es co#p&ete $&e5i%i&it, to the in)estor as he can in)est or dis-in)est at an, ti#e.
The $und is not &isted in the stoc7 #ar7et.
The in)estor can %u, and se&& these units $or# and to the #utua& $und. In accordance
8ith the recent chan!es2 the $und #ana!er has the option to &ist the $und in the stoc7 #ar7et in
addition to repurchase and resa&e.
B. CLOSE ENDED MUTUAL FUND,
It is a $und 8here in it has a $i5ed corpus and operates $or $i5ed duration at the end o$
8hich the entire corpus is disin)ested and proceeds are distri%uted to the )arious unit ho&ders in
proportion o$ their ho&din!s. The $und can a&so #a7e interi# pa,#ents i$ it so decides. Thus it
ceases the e5ist a$ter $ina& distri%ution. The units are issued &i7e an, other co#pan,9s ne8 issues2
&isted and :uoted at the stoc7 e5chan!e.
The units o$ c&ose-ended $unds are not a&8a,s redee#a%&e at their NAE. +ar7et prices are
deter#ined %, de#and and supp&, and not so&e&, %, NAE. I$ the $und #ana!er so chooses2 he
can o$$er repurchase $aci&it,. So a&so he can resu#e resa&e to the e5tent o$ repurchase.
A&& the sche#es discussed %e&o8 are either open ended or c&ose ended.
PORFOLIO CLASSIFICATION-
+utua& $unds di$$er 8ith re$erence to the t,pe o$ instru#ents in 8hich the #one, can %e
in)ested. These are speci$ied in the o$$er docu#entsD prospectus and accordin!&, the $und is
structured $or a particu&ar purpose.
A. 4ON 1<NSB
The, pro)ide $i5ed returns $or those 8ho desire sa$et, and stead, inco#e. The 1und is
in)ested in Go)ern#ent securities and 4onds. It is #ore &i:uid2 di)ersi$ied and conser)ati)e
in)est#ent 8ith re!u&ar inco#e and #oderate capita& !ains. The price o$ units o$ a +utua& 1und
$&uctuates 8ith chan!in! interest rates.
B.STOC. FUNDS,
The, are #ain&, those 8ho are 8i&&in! to accept ris7 in the hope o$ a hi!h Return. These
are ca&&ed Co##on Stoc7 1und. The, are o$ t8o t,pes @ Gro8th 1unds and Go-Go 1unds. The
$or#er consists o$ in)est#ents in 4&ue Chips and the &atter is Hi!h Ris7 Stoc7s.
C.INCOME FUNDS,
The, are #ain&, to #a5i#i;e the current inco#e o$ in)estors. The, are t8o t,pes o$
$unds @ Lo8 In)est#ent Ris7 8ith stead, inco#e and Hi!h Ris7 In)est#ent 8ith #a5i#u#
inco#e.
In)est#ent 8ou&d t,pica&&, %e in $i5ed inco#e securities to !reater e5tentF and in shares2
to a s#a&&er e5tent. Capita& appreciation in such sche#es #a, %e &i#ited. It is idea& $or retired
peop&e and others 8ith a need $or capita& sta%i&it, and re!u&ar inco#e2 and in)estors 8ho need
so#e inco#e to supp&e#ent their earnin!s. As #ost o$ In)estors pre$er inco#e 1unds2 the sa&es
o$ this $und had do#inated the other t,pes o$ $unds.
D.MONEY MAR.ET MUTUAL FUNDS,
In)est#ents are predo#inant&, in +one, +ar7et Instru#ents &i7e2 Certi$icate o$
eposits2 Co##ercia& Paper2 Treasur, 4i&&s etc. The, are short ter# in tenure2 hi!h&, &i:uid 8ith
hi!h sa$et,. This $und is an a&ternati)e to sa)in! account o$ hi!h %rac7et sa)ers. The $und cannot
in)est the corpus in shares2 de%entures and other such papers. Returns on these sche#es #a,
$&uctuate dependin! upon the interest rates pre)ai&in! in the #ar7et.
E. SPECIALISED FUNDS,
These $unds in)est in securities o$ certain industriesD speci$ic set o$ or speci$ic inco#e
producin! securities. The, carr, #ore ris7 due to &ac7 o$ di)ersi$ication.
F. LEVERAGE FUNDS,
The $unds %orro8 #one, in order to increase the si;e o$ the corpus and there %, increase
the %ene$it to the <nit Ho&ders %, operatin! 8ith a &ar!er corpus than the #one, co&&ected. No8
dou%t the cost o$ %orro8in! $unds2 8hich ha)e to %e #ore than co#pensated %, returns on
in)est#ents.
G. BALANCE FUNDS,
Here the assets are #ade up o$ a (udicious #i5ture o$ industries2 Stoc7 and 4onds. To
secure reasona%&e rate o$ return2 the $unds are e#p&o,ed in hi!h-!rade co##on stoc7 and
conser)ati)e $i5ed inco#e securities &i7e de%entures2 %onds and pre$erence shares. In a risin!
stoc7 #ar7et2 the NAE o$ these sche#es #a, not nor#a&&, 7eep pace or $a&& e:ua&&, 8hen the
#ar7et $a&&s. It is idea& $or in)estor9s &oo7in! $or a co#%ination o$ inco#e and #oderate !ro8th.
H. PENSION FUNDS,
These 1unds pro)ide $or &on! ter# in)est#ents out o$ indi)idua&9s in)estor9s
superannuation sa)in!s. The, ta7e ad)anta!e o$ ta5 rate a)ai&a%&e $or such in)estors.
I. INDE/ FUNDS,
In)est#ents are #ade in the inde5 scripts 8ith the sa#e proportion and 8ei!ht a!e as that
o$ inde5. The per$or#ance o$ $und 8i&& %e in the &ine 8ith the inde5.
0. TA/ SAVING SCHEMES,
These sche#es o$$er ta5 re%ate to the in)estors under ta5 &a8s as prescri%ed $ro# ti#e to
ti#e. This is #ade possi%&e %ecause the !o)ern#ent o$$er ta5 incenti)es $or in)est#ent in
speci$ic a)enues. Recent a#end#ents to the Inco#e Ta5 Act pro)ide $urther opportunities to
in)estors to sa)e capita& !ains %, in)estin! in +utua& 1unds. This sche#e is idea& $or in)estors
see7in! ta5 re%ate.
MUTUAL FUND 1 FRAME WOR.
SPONSOR
• Appro)a& %, SE4I
• Sound trac7 record
• E5perience in 1inancia& Ser)ices
• Pro$essiona& Co#petence2 1inancia& Soundness2 Reputation2 etc
• Contri%ution to A+C Capita& 06> #ini#u#
TRUSTEE
• Na#es to %e appro)ed %, SE4I
• Le!a&&, responsi%&e $or ad#inisterin! the Trust and Co#p&iance
• 8ith Re!u&ations
• Nor#s $or Trustees
• E5perience in 1inancia& Ser)ices
• +ini#u# 0 #e#%ers on the %oard and "6> o$ the #e#%ers not to %e connected 8ith the
sponsor
ASSET MANAGEMENT COMPANY *AMC+
Res2o!sble 3o$
• Launchin! sche#es
• +ana!in! $unds $or sche#es
• Per$or#in! Accountin! 1unction
• A&& da,-to-da, a$$airs o$ the +utua& 1unds
I!%o4e o3 a! AMC5 AM 3ee
• 1.2"> o$ 8ee7&, a)era!e NAE GNet asset )a&ueH o$ each sche#e up to Rs 1666 crore o$
assets #ana!ed.
• 1.66> !reater than 166 crore
• In$rastructure e5penses to %e %orne %, the A+C
CUSTODIAN
RESPONSIBILITIES
• Sa$e 7eepin! o$ the assets he&d %, the 1und
• Recei)es and e&i)ers Securities $or pa,#ent
• 1o&&o8 up on Corporate %ene$its
• Pro)ide an independent #eans o$ contro&
TRANSFER AGENTS
• Issue o$ Account State#ents to In)estors
• Arran!es pa,#ent to In)estors 8hen the, redee#
• Ta7es care o$ non co##ercia& transactions &i7e chan!e o$ address2 &oss o$ account
state#ent etc.
REGISTRAR
The re!istrar #aintains the in)est#ent account o$ the <nit ho&ders and a&so hand&es the
co#p&aints and !rie)ances $ro# the in)estors re&atin! to di)idend2 purchase and sa&e o$ units.
REGULATION OF MUTUAL FUNDS
The +utua& 1unds operatin! in India 8as !o)erned %, a nu#%er o$ Re!u&ations and
!uide&ines issued %, )arious A!encies )i;.2 <TI Act 1/'- and <TI Guide&ines2 the Indian Trust
Act 13322 Inco#e Ta5 Act 1/'1 etc. +utua& 1unds sponsored %, 4an7s 8ere !o)erned %,
!uide&ines dated Aune 2321//6 and Re)ised Eersion dated 1e%ruar, 1021//2.
The +inistr, o$ 1inance and Go)ern#ent o$ India rea&i;ed the need $or a set o$ co##on
ru&es !o)ernin! entire +utua& 1und Industr,2 appointin! a Co##ittee under the Chair#anship o$
r.S.A.a)e2 8ho 8as the Chair#an o$ <TI. The Co##ittee su%#itted its report in 1//22 %ased
on these reco##endations SE4I issued !uide&ines $or the +utua& 1und Industr, in Aanuar, 1//-.
And these are 7no8n as Securities and E5chan!e 4oard o$ India G+utua& 1undsH Re!u&ations
1//-.
A$ter the issue o$ these !uide&ines %, SE4I2 +utua& 1und Industr, 8as opened $or pri)ate
sector to enter the $ie&d. And a&& the +utua& 1unds contro&&ed %, SE4I e5cept <TI.
B$e3 )e'als o3 'he SEBI G#)el!es a$e,6
• +utua& 1unds are to %e esta%&ished in the $or# o$ Trust under the Indian Trust Act.
• 1unds and assets are to %e #ana!ed %, an Asset +ana!e#ent Co#pan,.
ASSET MANAGEMENT COMPANY
• A+C sha&& ha)e #ini#u# net 8orth o$ Rs.16 Crores. A+C and Trustee o$ +utua& 1unds
are t8o separate &e!a& entities.
• A+C shou&d $urnish SE4I their respecti)e +e#orandu# and Artic&es o$ association $or
appro)a&.
• A+C or its a$$i&iate can underta7e acti)ities &i7e #ana!e#ent and ad)ertisin! ser)ices to
Pension 1unds2 Pro)ident 1unds2 Eenture Capita& 1unds2 1inancia& Consu&tanc, and
Research2 %ut shou&d not act as #ana!er $or an, other 1und.
SCHEMES,
• A&& sche#es $&oated %, +utua& 1unds are to %e re!istered 8ith SE4I.
• A standard $or#at o$ Sche#e9s prospectus has to %e introduced.
• A&& the in)estors up to "2666 <nits 8i&& %e !i)en $u&& a&&ot#ent in case o$ o)er
su%scription.
• +utua& $unds dea&in! 8ith #one, #ar7et instru#ents are to %e re!u&ated %, SE4I.
.
• Other +utua& 1unds Sche#es2 8hich in)est part&, in #one,
• #ar7et and part&, in Capita& #ar7et2 are re!u&ated %, SE4I.
INVESTMENT LIMITATIONS,
• No +utua& 1unds2 under a&& its sche#es shou&d o8n #ore than 16> o$ an, co#pan,9s
paid up capita& carr,in! )otin! ri!hts.
• +utua& 1unds #a, in)est in another sche#e #ana!ed %, the sa#e A+C or others to the
e5tent o$ "> o$ the NAE.
• +utua& 1unds can in)est on&, trans$era%&e securities in +one, +ar7et or Capita& +ar7et.
• In)est#ent in de%t instru#ent shou&d !enera&&, %e in those rated an in)est#ent !rade and
a%o)e.
INCOME DISTRIBUTION,
A&& +utua& 1unds #ust distri%ute /6> o$ their pro$its e)er, ,ear a#on! their in)estors.
MAR.ETING OF MUTUAL FUNDS
+ar7etin! is the %i! cha&&en!e in %usiness especia&&, o$ #ar7etin! o$ +utua& 1und. The
cha&&en!e is that 8ith the sa#e product and custo#ers 8ith di)ersi$ied pro$i&e. +utua& 1unds
dea& 8ith s#a&& in)estor9s hard-earned #one,2 a sensiti)e co##odit, and on&, ser)ice is
in)o&)ed in se&&in! the product. Since #utua& 1unds interacts 8ith &a7hs o$ in)estors 8ho are
&i7e&, to %e associated $or a &on!er tenure2 post issue ser)ices p&a,s an i#portant ro&e in custo#er
satis$action.
A&on! 8ith $our P9s na#e&,2 product2 price2 p&ace2 and pro#otion2 +utua& 1und has one
#ore P i.e.2 Port$o&io.
The #ar7etin! di)ision has to desi!n the product accordin! to the needs o$ the in)estors
and p&ace it in ri!ht #ar7et2 in ri!ht #anner2 tar!eted to the ri!ht se!#ent. 1or#a&ities o$
#ar7etin! +utua& 1unds starts 8ith ta7in! per#ission $ro# A!encies &i7e +inistr, o$ 1inance2
R4I2 SE4I etc. Ga;ette Noti$ication o$ Sche#es is then done.
+ar7etin! di)ision has to e)a&uate the stren!ths2 potentia&s2 opportunities and 8ea7ness
o$ the #ar7et. Accordin! to the #ar7et condition it has to desi!n the products i.e.2 the Sche#e.
The price shou&d %e so desi!ned2 such that to reach and attract s#a&& in)estors. The price o$ one
sche#e 8i&& di$$er $ro# the other accordin! to its se!#ents o$ custo#ers. Earious techni:ues are
used to reach the una8are poc7et o$ in)estors &i7e direct #ai&ers to $u&&-$&ed!ed #ar7etin!
ca#pai!ns2 the 1und 8i&& spend &a7hs o$ rupees to #o%i&i;e in)est#ents and conse:uent&,
#ar7etin! cost 8i&& increase. So a #ar7etin! di)ision shou&d a&8a,s %a&ance its costs 8ith the
price o$ the sche#e. The e5penses o$ the $und shou&d not increase the inco#e $ro# the $und.
A +utua& 1und is an in)est#ent )ehic&e $or those 8ho 8ant to spread their ris7s and see7
returns2 8hich are than those a)ai&a%&e $ro# 4an7 deposits or other in)est#ent a)enues. Such
in)estors $ro# shou&d %e educated to a)oid $acin! situations o$ &oss o$ $aith in in)est#ents or
hea), o$$-&oadin! in the hu!e discount o$ NAE.
Positionin! o$ +utua& 1und is )er, i#portant. +r. G..Shenai2 +ana!in! irector2
Canara %an7 +utua& 1und states that @ +ost $unds ha)e tar!eted the 8ron! se!#ent o$
custo#ers2 he $ee&s #utua& o$$er a so&ution to those peop&e 8ho do not ha)e access to the Stoc7
+ar7et2 due to &ac7 o$ ti#e or %ecause o$ !eo!raphica& spreads &i#itations. It is this se!#ent o$
in)estors2 8hich shou&d %e trapped throu!h te&e)ision. Rura& #ar7ets cou&d %e penetrated 8ith
specia& sche#es ai#ed at this popu&ation. A&so the 8ide Canara 4an7 net8or7 in the rura& areas
cou&d ser)e this c&iente&e.
The port$o&io o$ in)est#ents #ade %, $und shou&d %e re!u&ar&, re)ie8ed %, ca&cu&atin!
the returns $ro# each se!#ent o$ the port$o&io2 their present #ar7et positions2 e)a&uate their
$uture #ar7et position etc. i$ one se!#ent is not up to the tar!et then the port$o&io shou&d %e
chan!ed.
The port$o&io shou&d %e so desi!ned 8hich satis$ies the Sche#e9s need. The port$o&io o$ a
de%t sche#e 8i&& ha)e #ore e:uities and &ess de%t2 &i:uid $unds has #one, #ar7et instru#ents
and de%t o$ )er, short-ter# tenure.
+ar7etin! o$ +utua& 1und is not dea& %ased2 %ut it is re&ationship %ased. The ps,cho&o!,
o$ in)estor9s needs deep insi!htF understandin! and respondin! to present in)estor 8i&& o%)ious&,
%rin! ne8 in)estors %eside retainin! present in)estors. Thus data %ased #ar7etin! shou&d %e
e#phasi;ed $or open-ended sche#es.
PRICING OF MUTUAL FUND UNITS
Pricin! is a )er, concept o$ #ar7etin! #i5. Pricin! o$ $inancia& products is a co#p&icated
issue. Eer, o$ten2 there are )ast di$$erences %et8een $ace )a&ue and #ar7et price. There are so#e
&e!a& restrictions on pricin! o$ units.
SEBI E72e$'s Co44''ee o! 2$%!" #!'s,
An E5pert Co##ittee 8as set up %, SE4I under the Chair#anship o$ +r.L.C.Gupta. The
Co##ittee has su!!ested t8o options na#e&,2-
1. The purchase and sa&e price can %e deter#ined 8ith a $i5ed discount and pre#iu#
respecti)e&, on the NAE.
2. The A+C shou&d ha)e the discretion to $i5 the repurchase and sa&e prices as &on! as the,
are anchored to the NAE i.e.2 the repurchase price is not &o8er than /-> o$ the NAE2
pro)ided that the spread %et8een repurchase price and the sa&e price does not e5ceed *>
ca&cu&ated on the sa&e.

Thus the Co##ittee has opined the repurchase and sa&e prices in the case open ended
sche#es shou&d %e nearer to NAE a$ter suita%&e ad(ust#ents $or e5penses in connection 8ith
entr, and e5it to or $ro# the sche#e as the case #a, %e.
SOME TERMS RELATING TO PRICE
1. Entr, &oad or $ront end &oad @ A sa&es $ee char!ed at the ti#e o$ purchase.
2. E5it &oad or %ac7 end &oad @ A $ee char!ed at the ti#e o$ rede#ption o$ repurchase o$
units.
-. Pre#iu# - I$ the price o$ the unit is hi!her than NAE then the units is issued at discount.
0. iscount - I$ the NAE is hi!her than the price o$ the unit then the unit is issued at
discount.
". +ana!ed 1ees @ The percenta!e chan!ed $or port$o&io #ana!e#ent. This e5pense 8i&& %e
stated in 1und9s prospectus. This e5penses #a, dec&ine proportionate&, as the 1und9s
asset %ase increases.
'. Net Asset @ Tota& )a&ue o$ 1und9s cash and securities &ess its &ia%i&ities or O%&i!ations.
*. E5penses Ratio @ The annua& e5penses o$ a 1und inc&ude the +ana!e#ent $ee2
Ad#inistrati)e costs2 di)idend %, net assets.
3. Pu%&ic O$$erin! Price @ The sa&e price per unit at 8hich a unit ho&der can %u, the units.
POP 8 NAV 5 9 1 Sales Loa)
1. Rede#ption Price @ The sa&es price per unit at 8hich a unit ho&der can se&& the units o$
open @ended sche#e.
REE+PTION PRICE I NAE D 1 J E5it Load
2. Repurchase Price @ It is the price at 8hich a c&ose-ended sche#e repurchased its units
and it #a, inc&ude a %ac7 end &oad.
Be!e3's o3 M#'#al F#!)s
1. Pro$essiona& +ana!e#entB
A)ai&in! o$ the ser)ices o$ e5perienced and s7i&& pro$essiona&s 8ho are %ac7ed %, a dedicated
in)est#ent research tea# 8hich ana&,ses the per$or#ance and prospectus o$ Co#panies and
se&ect suita%&e in)est#ents to achie)e the o%(ecti)es o$ the Sche#e.
2. i)ersi$icationB
+utua& 1unds in)est in a nu#%er o$ co#panies across2 a%oard cross section o$ industries and
sectors. This di)ersi$ication reduces the ris7 %ecause se&do# do a&& stoc7s ti#e and in the sa#e
proportion. In)estors can achie)e this di)ersi$ication throu!h +utua& 1und 8ith $ar &ess #one,
he can do on his o8n.
-. Con)enient Ad#inistrationB
In)estin! in a +utua& 1und reduces the paper 8or7 and he&ps in a)oidin! #an, pro%&e#s such as
%ad de&i)eries2 de&a, pa,#ent and unnecessar, $o&&o8 up 8ith %ro7ers and co#panies. +utua&F
1und sa)e ti#e and #a7e in)estin! eas, and con)enient.
0. Return Potentia&B
O)er a #ediu# o$ &on! ter#2 +utua& 1unds ha)e the potentia& to pro)ide a hi!her as the, in)est
in a di)ersi$ied %as7et o$ se&ected securities.
". Lo8 CostB
+utua& 1unds are a re&ati)e&, &ess e5pensi)e 8a, to in)est2 co#pared to direct&, in)estin! in the
Capita& +ar7et2 %ecause the %ene$its o$ sca&e in %ro7era!e2 custodian and other $ees trans&ate into
&o8er costs $or in)estors.
'. Li:uidit,B
In open-ended sche#es2 one can !et their #one, %ac7 pro#pt&, at Net Asset Ea&ue re&ated prices
$ro# the +utua& 1und itse&$. C&ose ended sche#es units can %e so&d in a Stoc7 E5chan!e at the
pre)ai&in! #ar7et price or a)ai& the $aci&it, o$ direct repurchase at NAE re&ated prices 8hich
so#e c&ose ended and inter)a& sche#es o$$er.
*. Transparenc,B
In)estor can !et re!u&ar inco#e in$or#ation on the )a&ue o$ their in)est#ent in addition to
disc&osure on the speci$ic in)est#ent #ade %, the sche#e2 the proportion in)ested in each c&ass
o$ assets and the $und #ana!ers in)est#ent strate!, and out&oo7.
3. 1&e5i%i&it,B
Throu!h $eatures such as re!u&ar in)est#ent p&ans2 re!u&ar 8ithdra8a& p&ans and di)idend
rein)est#ent p&ans one can s,ste#atica&&, in)est or 8ithdra8 accordin! to their needs and
con)enience.
/. Choice o$ Sche#eB
+utua& 1unds o$$er a $a#i&, o$ sche#es to suit the )ar,in! needs o$ di$$erent t,pes o$ in)estors.
16. Ce&& Re!u&atedB
A&& +utua& 1unds are re!istered 8ith SE4I and the, $unction 8ithin the pro)ision or strict
re!u&ations desi!ned to protect the in)estor9s in)est#ent. The operations o$ +utua& 1unds are
re!u&ar&, #onitored %, SE4I.
11. +ana!in! Ris7B
Chi&e ris7 cannot %e e&i#inated. S7i&&$u& #ana!e#ent can #ini#ise ris7. +utua& $unds he&p to
reduce ris7 throu!h di)ersi$ication and pro$essiona& #ana!e#ent. The e5perience and e5pertise
o$ +utua& 1und #ana!es in se&ectin! $unda#enta&&, sound securities and ti#in! their purchases
and sa&es he&p the# to %ui&d a di)ersi$ied port$o&io that #ini#i;es ris7 and #a5i#i;es returns.
12. Ta5 4ene$itB
A' 2$ese!' !:es'4e!' ! 4#'#al 3#!) s%he4es e!;o( 'he 3ollow!" 'a7 be!e3's @
1. Since2 Apri& 12 266-2 a&& di)idends dec&ared %, de%t-%ased #utua& $unds are ta5-$ree in
the hands o$ the in)estor. A di)idend distri%ution ta5 o$ 12."> Ginc&udin! surchar!eH is %e
paid %, the #utua& $und on the di)idends dec&ared %, the $und.
2. In)estors in ELSS Ge:uit,-&in7ed sa)in!s sche#esH can a)ai& re%ate under Section 33 o$
the Inco#e Ta5 Act2 1/'1 on in)est#ent up to Rs 162666 su%(ect to the )arious
conditions &aid do8n in the said Section.
-. <nder Section 16G-3H o$ the Act2 &on!-ter# capita& !ains arisin! $ro# trans$er o$ a unit o$
#utua& $und is e5e#pt $ro# ta5 i$ the said transaction is underta7en a$ter Octo%er 12 2660
and the securities transaction ta5 is paid to the appropriate authorit,.
0. <nder Section 111A o$ the Act2 short-ter# capita& !ains arisin! $ro# trans$er o$ a unit o$
#utua& $und is char!ea%&e to ta5 K 16> Gp&us app&ica%&e surchar!eH i$ the said
transaction is underta7en a$ter Octo%er 12 2660 and the securities transaction ta5 is paid.
Howe:e$< s#%h se%#$'es '$a!sa%'o! 'a7 wll be allowe) as $eba'e #!)e$ Se%'o! ==E o3 'he
A%' 3 'he '$a!sa%'o! %o!s''#'es b#s!ess !%o4e.
• <nder Section 112 o$ the Act2 capita& !ains2 not co)ered %, the e5e#ption under Section
16G-3H2 char!ea%&e on trans$er o$ &on!-ter# capita& assets are su%(ect to $o&&o8in! rates o$
ta5B
• Resident Indi)idua& . H<1 --- 26> p&us surchar!e.
• Partnership 1ir#s . Indian Co#panies --- 26> p&us surchar!e.
• 1orei!n Co#panies --- 26> Gno surchar!eH.
Capita& !ains 8i&& %e co#puted a$ter ta7in! into account cost o$ ac:uisition as ad(usted %,
Cost In$&ation Inde5 noti$ied %, the centra& !o)ern#ent.
<nder Section 11"A4 o$ the Inco#e Ta5 Act2 1/'12 &on!-ter# capita& !ains in respect o$
units purchased in $orei!n currenc, %, an o)erseas $inancia& or!ani;ation he&d $or a period o$
#ore than 12 #onths 8i&& %e char!ea%&e at the rate o$ 16>. Such !ains 8i&& %e ca&cu&ated 8ithout
inde5ation o$ cost o$ ac:uisition. No surchar!e is app&ica%&e $or ta5es under section 11"A42 in
respect o$ corporate.
PROBLEMS FACED BY MUTUAL FUNDS-
The 2$oble4s ! 4#'#al 3#!) !)#s'$( a$e as 3ollows,
• Eo&ati&it, in Indian econo#,B
Shares prices in Indian stoc7 chan!es $re:uent&,. Thus a $und #ana!er has to chan!e the
port$o&io accordin! to the chan!es o$ share prices.
• In)estors educationB
+an, in)estors are not a8are o$ the %ene$its $ro# #utua& $unds2 the, are not a8are o$ the
characteristics return ris7 trade o$$ in in)estin! in a #utua& $und #an, in)estors are inacti)e and
i!norant.
-. Incapa%&e $und #ana!ersB
+an, $und #ana!ers &ac7 the 7no8&ed!e econo#,2 industries and co#panies #an, p&a,in! 8ith
in)estor9s #one,2 the, are not capa%&e o$ Aud!e %et8een in)est#ent choices and re)ie8
port$o&io.
0. Non co-operation %et8een or!anisationa& co##itteeB
Sponsors2 custodians2 $und #ana!ers are not 8or7in! hand in hand.
". Transparenc,B
SE4I !uide&ines sa, #utua& $und has to #aintain transparenc, in its operations2 %ut #an, $unds
are not transparent to its in)estors2 !o)ern#ent and pu%&ic.
'. A$ter sa&es ser)iceB
+utua& $unds are not pro)idin! a$ter sa&es ser)ices to in)estors &i7e !i)e detai&s $or re$erence2
NAE disc&osure etc.2
*. irect &aunchin! o$ e:uit,B
This #a, %e the reason $or the $ai&ure o$ #utua& $unds. In <SA de%t sche#es 8ere $irst incepted
and then e:uit, sche#es 8ere started2 %ut in India due to %oo# in share #ar7et direct e:uit,
sche#es 8ere started and then de%t sche#es 8ere introduced.
3. Hi!h ris72 &o8 returnB
The return2 8hich a in)estor !ets $ro# #utua& $und2 is &o82 %ut the ris7 is hi!h. Return earned
$ro# $und has to %e distri%uted a#on! the unit ho&ders on&, a$ter deduction $or #aintenance o$
the $und2 thus the return 8i&& %e &o8.
New '$e!)s ! 4#'#al 3#!) !)#s'$(
• S,ste#atic in)est#ent p&an GSIPHB
<nit ho&ders can %ene$it %, in)estin! speci$ied rupee accounts at re!u&ar inter)a&s $or a
continuous periods2 $or purchasin! additiona& units o$ the sche#es at NAE %ased prices. 4, this
unit ho&der can ta7e ad)anta!e o$ the %ene$its o$ rupee cost a)era!in!.
• S,ste#atic 8ithdra8a& p&an GSCPHB
SCP a&&o8s the unit ho&ders to 8ithdra8 a speci$ic su# o$ #one, each #onthD :uarterD ha&$
,earD ,ear&, $ro# his in)est#ents in the sche#es. The a#ount thus 8ithdra8n %, rede#ption
8i&& %e con)erted into units at app&ica%&e NAE %ased prices and the nu#%ers o$ units so arri)ed
at 8i&& %e su%tracted $ro# the units %a&ance to the credit o$ the unit ho&der.
• S8itchin! optionsB
<nit ho&ders under one sche#e can s8itch or a&& o$ their ho&din!s in the sche#es to another2
8hich is a)ai&a%&e $or in)est#ent at that ti#e.
• i)idend at short inter)a&sB
i)idends $ro# &i:uid $unds are no8 co#in! thic7 and $ast2 8ith $unds pro#isin! $ortni!ht&, and
e)en 8ee7&,2 pa,-outs2 &i:uid $unds #ain&, tar!ets co#panies and hi!h net 8orth indi)idua&s.
• Loans a!ainst +utua& 1undsB
4ir&a G&o%a& $inance o$$ers &oans a!ainst #utua& $und units. The co#pan, trac7s 16 %est
per$or#in! open ended #utua& $unds and !rant &oans a!ainst units o$ these $unds. In)estors ha)e
to p&ed!e their units at interest rate o$ 1*.">. the co#pan, 8i&& dis%urse &oan up to '6> o$ the
)a&ue o$ e:uit, $und up to 3"-/6> o$ the de%t $und units. Ter# o$ the &oan is a #ini#u# o$ 1"
da,s up to a #a5i#u# o$ a ,ear.
• E&ectronic c&earanceB
Reser)e %an7 o$ India has introduced a ne8 #ethod o$ pa,#ent 8hich pro#ises2 in)estors an
option to co&&ect periodic interestD di)idendD repurchaseD rede#ption direct&, throu!h %an7
account. In this s,ste# pa,#ent instruction 8ou&d %e issued e&ectronica&&, throu!h %an7 to the
c&earin! authorit, and the c&earin! authorit, 8ou&d supp&, credit reports to the %an7 8ith 8hich
in)estors #aintain the speci$ied account. The %ranch 8i&& credit the account direct&, and an ECS
entr, 8i&& appear in the pass%oo7. A pa,#ent ad)ice 8i&& a&so %e send to in)estors. This $aci&it,
8i&& he&p 7in a)oidin! cases o$ pi&$era!e2 $raudu&ent encash#ent etc.2
RESEARCH DESIGN
TITLE O1 THE ST<L
MPERCEPION O1 INEESTORS TOCARS THE +<T<AL 1<NN
STATE+ENT O1 THE PRO4LE+
In the #inds o$ e)er, co##on #an in)estin! in #utua& $unds is a )er, ris7, a$$air2 i$ not
the ris7iest. This senti#ent 8i&& resu&t in the co&&apse o$ secondar, #ar7et and the in)est#ents in
stoc7 #ar7et. 1or 8ipin! o$$ the 8ron! $ee&in! $ro# !enera& custo#ers #ind there is a need to
stud, the perception to8ards +utua& 1unds in 4an!a&ore and to see i$ there is dependenc, o$
inco#e &e)e& o)er in)est#ent in +utua& 1unds and so#e e$$orts ha)e %een #ade to 7no8 a%out
e5istin! In)estors opinion a%out +utua& 1unds and their per$or#ances.
O4AECTIEES O1 THE RESEARCH
1H To stud, the in)estors9 perception to8ards +utua& 1unds
2H To 7no8 custo#ers a8areness a%out +utua& 1unds
-H To stud, 8hether in)est#ent in +utua& 1unds is dependent o$ inco#e &e)e&s or not.
0H To stud, in)estor or custo#ers 8i&&in!ness to ta7e #ar7et ris7.
"H To 7no8 the 4rand and Ad)ertise#ent in$&uence on custo#er a%out +utua& 1unds.
'H To %e a8are o$ In)estors as 8e&& as ne8 potentia& custo#ers con$idences a%out +utua& 1unds.
*H To e)a&uate the direction2 !ro8th and e5tent in the conte5t o$ the recent de)e&op#ent in the
Indian capita& #ar7et.
3H To stud, 8hat a!e and inco#e peop&e are #ost interested to in)est in +utua& 1unds.
SCOPE O1 THE ST<L
The scope o$ the stud, is e5tended to stud, in)estor9s perception to8ards the #utua& $und
sche#es and preparations o$ $easi%i&it, report %ased on stud, conducted %, the research in
4an!a&ore durin! the period o$ 266*.2663
LI+ITATIONS O1 THE ST<L
E$$orts 8ere #ade to see that the data co&&ected and ana&,sed 8ere as accurate as possi%&e. In
spite o$ a&& precautions ta7en2 certain &i#itations o$ the stud, can %e o%ser)ed.
1. The sa#p&e si;e ta7en $or research #a, not !i)e e5act $i!ure or #a, not co)er the entire
popu&ation arti$icia&&, or that the respondent #a, %e %iased.
2. The second constrain is that the respondent #a, s7ip so#e :uestions. A&so the, #a, not
respond to e)er, :uestion correct&,.
-. The third and i#portant constrain is the ti#e &i#it. Since the stud, had to %e conducted in
a short span o$ ti#e2 the accurac, #a, %e a$$ected.
0. 1ina&&, the techni:ues used in data ana&,sis #a, not %e as accurate as other so$t8are
app&ications.

RESEARCH +ETHOOLOGLB
In due course o$ data co&&ection $or co)erin! the a%o)e stated o%(ecti)es2 the stud,
#ethodo&o!ies $o&&o8ed areB
• irect inter)ie8 8ith unit ho&ders.
• iscussion 8ith persons 8ho ha)e 7no8&ed!e a%out #utua& $unds.
• iscussion 8ith %ro7ers.
• In-depth stud, o$ )arious %oo7s on #utua& $unds2 #a!a;ines2 (ourna&s and ne8spapers.
TOOLS <SE IN ATA COLLECTIONB
Pri#ar, dataB-
Pri#ar, data 8as co&&ected throu!hB
• Ouestionnaire .
• iscussion 8ith persons 8ho ha)e 7no8&ed!e a%out this su%(ect.
Secondar, dataB-
Secondar, data 8as o%tained $ro#B-
• +a!a;ines2 (ourna&s and ne8spapers.
• Internet.
. Reports o$ SE4I2 R4I etc..
SA+PLE
It inc&udes in)estors 8ho are in)estin! #utua& $und and #one, #ar7et.
SA+PLE SIPE
Sa#p&e si;e is "6 respondents and #ethod o$ sa#p&in! is rando# sa#p&in!.
G&o%a& trends in +utua& 1und
+utua& $unds ha)e e#er!ed as the chie$ )ehic&e o$ indi)idua& sa)in!s and
in)est#ents the 8or&d o)er. In the <.?2 near&, ei!ht, percenta!e o$ in)estors &oo7 to the #utua&
$unds- Q<nit TrustsQ as the, are ca&&ed there. In the <.S an indi)idua& 8ith e)en =1 #i&&ion o$
in)esta%&e $unds ta7es the #utua& $und route to in)estin! in e:uit,2 instead o$ resortin! to direct
participation. This is so e)en thou!h he has access to a #ass o$ in$or#ation &i7e Standard and
Poor9s "66 and o8 Aones Inde5 to !uide hi# in ta7in! his o8n in)est#ent decisions. Present&,
in the <.S there are near&, "666 #utua& $und sche#es 8ith asset o$ =1.' tri&&ion in)ested %, *"
#i&&ion unit-ho&ders. 4, the turn o$ the centur,2 the tota& assets are &i7e&, to touch =0 tri&&ion. The
&ar!est $und2 1ide&it, In)est#ents #ana!es $unds a!!re!atin! =2'3 %i&&ion. This has to %e
appraised in the conte5t o$ tota& #ar7et capita&i;ation o$ a&& the stoc7s &isted in 4o#%a, Stoc7
E5chan!e standin! at a #ere =11" %i&&ion.
In the U.S the mutual fund business is growing at an annual rate of twenty to twenty-
five per cent. According to a review conducted by Gold man Sachs, a leading U.S
merchant banker, mutual funds are now the markets driving force, having brought
eighty-four per cent of all shares ac!uired on "##$.
The !reat di)ersit, i$ #utua& $und sche#es in the <.S is i&&ustrated %, the A#ana $unds2
the $irst and apparent&, the on&, <.S #utua& $und operatin! accordin! to strict Is&a#ic !uide&ines
reported&,. Since Is&a#ic &a8 prohi%its a !uaranteed return on in)est#ent2 the $und ho&ds no
%ond orpre$erred stoc72 and 7eeps its cash in chec7in! accounts2 8hich pa, no interest. Thus
$und2 ho8e)er2 in)ests in stoc7s2 8hich rise and $a&& in )a&ue and can rise2 &o8er or e&i#inate an,
di)idend.
In a&& o$ Europe2 too2 the trend is si#i&ar. The #a(or stoc7 e5chan!e at Lu5e#%our! 8hich has
de)e&oped specia&i;ed s7i&&s in euro-issues2 had '* #utua& $unds2 R$unds co##ons9 as the, are
7no8n2 &isted in 1/30 8ith net assets o$ L<1 202'/6 %i&&ion. In 1//62the nu#%er o$ $unds
increased to 2'3 and their net assets to L<1 12-32''6 %i&&ion. In 7eepin! 8ith !enera& trend there
8as a dra#atic sur!e in #utua& $unds in)est#ents.O%)ious&, 8ith such a &ar!e choice2 the
8estern in)estors has a 8ide )ariet, o$ options and doesn9t ha)e to re&, on the sa#e stereot,ped
sche#es popu&ar&, 7no8n as Rp&ain )ani&&a9 sche#es.
Mutual Funds in India
+utua& $unds $irst #ade their entr, in India in 1/'0 8ith the <nit Sche#e '0 &aunched %, the
<nit Trust o$ India G<TIH. <TI 8as set up under the <TI Act2 1/'-2 to operate %oth as a $inancia&
institution and in)est#ent trust. <nit Sche#e '0 turned out to %e e5tre#e&, popu&ar2 initia&&, as a
)ehic&e $or do#estic sa)in!s2 %ut su%se:uent&, as an instru#ent $or corporate ho&din! as 8e&&. 4,
1/'02 the in)esta%&e $unds in this sche#e had crossed Rs. 122666 crores.
In 1/3' the $irst #utua& $und !ro8th sche#e2 +aster shares2 8as &aunched %, <TI. This 8as
success$u&&, &isted and traded in the stoc7 e5chan!e. Encoura!ed %, this )enture2 other p&a,ers
e#er!ed. In 1/3* The State 4an7 o$ India +utua& 1und GS4I +1H and Canara 4an7 +utua&
1und GCan%an7 +1H started their operations2 $o&&o8ed %, the #utua& $unds sponsored %, the
4an7 o$ India2 Indian 4an7 and Pun(a% Nationa& 4an7. Not to &a! %ehind2 Li$e Insurance
Corporation o$ India GLICH and Genera& Insurance Corporation GGICH2 too2 sponsored their
respecti)e #utua& $und sche#es.
Se)en institutions in the Pu%&ic Sector -$i)e %an7s and t8o insurance co#panies thus $o&&o8ed
<TI. The, a&& had the inherent ad)anta!e o$ %asic in$rastructure2 an o)er$&o8 o$ $unds and
custo#er ser)ice out&ets. 4, the end o$ +arch /-2 the tota& corpus o$ the %i! ei!ht 8as
appro5i#ate&, Rs "62666 crores. Cith <TI a&one2 accountin! $or Rs 062666 crores.
The spectacu&ar sur!e ca#e in 1//2-/- 8hen the tota& nu#%er o$ in)estors increased $ro# 13
#i&&ion to -2 #i&&ion and the co#%ined corpus rose to Rs -32666 crores. +uch o$ it 8as no dou%t
account $or %, <TI +aster Gain /2 8hich netted in Rs 02*/1.*/crore 8innin! $or itse&$ a p&ace in
Guinness %oo7 o$ records. This increase has to %e )ie8ed a!ainst the %ac7!round o$ net assets o$
a #eas&, Rs02 666 crore in 1/3* $or the entire ei!ht-$und put to!ether.
Phase o$ de)e&op#ent o$ #utua& $und in India
The #utua& $und industr, in India started in 1/'- 8ith the $or#ation o$ <nit Trust o$ India2 at the
initiati)e o$ the Go)ern#ent o$ India and Reser)e 4an7 the. The histor, o$ #utua& $unds in India
can %e %road&, di)ided into $our distinct phases.
1irst Phase @ 1/'0-3*
<nit Trust o$ India G<TIH 8as esta%&ished on 1/'- %, an Act o$ Par&ia#ent. It 8as set up %, the
Reser)e 4an7 o$ India and $unctioned under the Re!u&ator, and ad#inistrati)e contro& o$ the
Reser)e 4an7 o$ India. In 1/*3 <TI 8as de-&in7ed $ro# the R4I and the Industria& e)e&op#ent
4an7 o$ India GI4IH too7 o)er the re!u&ator, and ad#inistrati)e contro& in p&ace o$ R4I. The
$irst sche#e &aunched %, <TI 8as <nit Sche#e 1/'0. At the end o$ 1/33 <TI had Rs.'2*66
crores o$ assets under #ana!e#ent
Second Phase @ 1/3*-1//- GEntr, o$ Pu%&ic Sector 1undsH
1/3* #ar7ed the entr, o$ non- <TI2 pu%&ic sector #utua& $unds set up %, pu%&ic sector %an7s and
Li$e Insurance Corporation o$ India GLICH and Genera& Insurance Corporation o$ India GGICH.
S4I +utua& 1und 8as the $irst non- <TI +utua& 1und esta%&ished in Aune 1/3* $o&&o8ed %,
Can%an7 +utua& 1und Gec 3*H2 Pun(a% Nationa& 4an7 +utua& 1und GAu! 3/H2 Indian 4an7
+utua& 1und GNo) 3/H2 4an7 o$ India GAun /6H2 4an7 o$ 4aroda +utua& 1und GOct /2H. LIC
esta%&ished its #utua& $und in Aune 1/3/ 8hi&e GIC had set up its #utua& $und in ece#%er 1//6
At the end o$ 1//-2 the #utua& $und industr, had assets under #ana!e#ent o$ Rs.0*2660 crores.
Third Phase @ 1//--266- GEntr, o$ Pri)ate Sector 1undsH
Cith the entr, o$ pri)ate sector $unds in 1//-2 a ne8 era started in the Indian #utua& $und
industr,2 !i)in! the Indian in)estors a 8ider choice o$ $und $a#i&ies. A&so2 1//- 8as the ,ear in
8hich the $irst +utua& 1und Re!u&ations ca#e into %ein!2 under 8hich a&& #utua& $unds2 e5cept
<TI 8ere to %e re!istered and !o)erned. The erst8hi&e ?othari Pioneer Gno8 #er!ed 8ith
1ran7&in Te#p&etonH 8as the $irst pri)ate sector #utua& $und re!istered in Au&, 1//-.
The 1//- SE4I G+utua& 1undH Re!u&ations 8ere su%stituted %, a #ore co#prehensi)e and
re)ised +utua& 1und Re!u&ations in 1//'. The industr, no8 $unctions under the SE4I G+utua&
1undH Re!u&ations 1//'
The nu#%er o$ #utua& $und houses 8ent on increasin!2 8ith #an, $orei!n #utua& $unds settin!
up $unds in India and a&so the industr, has 8itnessed se)era& #er!ers and ac:uisitions. As at the
end o$ Aanuar, 266-2 there 8ere -- #utua& $unds 8ith tota& assets o$ Rs. 1221236" crores. The
<nit Trust o$ India 8ithRs.002"01 crores o$ assets under #ana!e#ent 8as 8a, ahead o$ other
#utua& $unds.
1ourth Phase @ since 1e%ruar, 266-
In 1e%ruar, 266-2 $o&&o8in! the repea& o$ the <nit Trust o$ India Act 1/'- <TI 8as %i$urcated
into t8o separate entities. One is the Speci$ied <nderta7in! o$ the <nit Trust o$ India 8ith assets
under #ana!e#ent o$ Rs.2/23-" crores as at the end o$ Aanuar, 266-2 representin! %road&,2 the
assets o$ <S '0 sche#e2 assured return and certain other sche#es. The Speci$ied <nderta7in! o$
<nit Trust o$ India2 $unctionin! under an ad#inistrator and under the ru&es $ra#ed %,
Go)ern#ent o$ India and does not co#e under the pur)ie8 o$ the +utua& 1und Re!u&ations.
The second is the <TI +utua& 1und Ltd2 sponsored %, S4I2 PN42 4O4 and LIC. It is re!istered
8ith SE4I and $unctions under the +utua& 1und Re!u&ations. Cith the %i$urcation o$ the
erst8hi&e <TI 8hich had in +arch 2666 #ore than Rs.*'2666 crores o$ assets under #ana!e#ent
and 8ith the settin! up o$ a <TI +utua& 1und2 con$or#in! to the SE4I +utua& 1und
Re!u&ations2 and 8ith recent #er!ers ta7in! p&ace a#on! di$$erent pri)ate sector $unds2 the
#utua& $und industr, has entered its current phase o$ conso&idation and !ro8th. As at the end o$
Septe#%er2 26602 there 8ere 2/ $unds2 8hich #ana!e assets o$ Rs.1"-163 crores under 021
sche#es
The !raph indicates the !ro8th o$ assets o)er the ,earsB-
GROCTH IN ASSETS <NER +ANAGE+ENT
Pri)ate #utua& $unds
Ho8e)er2 the #onopo&, o$ the %i! ei!ht 8as ended %, the ne8 econo#ic po&ic,
spearheaded %, r. +an#ohan Sin!h $ro# 1//1. The process o$ &i%era&i;ation thre8 the doors
open to p&a,ers in the pri)ate sector to pro)ide the
#uch-needed co#petiti)e ed!e and a 8ider scope o$ options to the in)estors. The e5istin!
#utua& $unds2 it 8as $e&t2 had $ai&ed to &i)e up to the e5pectations o$ co##on in)estors due toB
GaH Poor ser)icin!2 inordinate de&a,s in the receipt o$ unit certi$icates and di)idend 8arrantsF
G%H Indi$$erent per$or#ance o$ #ost o$ the #utua& $und sche#es 8hich under-per$or#ed the
#ar7et thus den,in! the in)estors a reasona%&e returnF
GcH A%sence o$ ade:uate disc&osure nor#sF and
GdH Lac7 o$ an in)estor-$riend&, approach in !enera&.
Hence the securities and E5chan!e 4oard o$ India GSE4IH accorded appro)a& to a nu#%er o$
p&a,ers in the pri)ate sector to sponsor #utua& $unds. These inc&ude so#e o$ the %i!!est
hea),8ei!hts o$ Indian corporate sector.
An i#portant $eature o$ the pri)ate sector #utua& $unds-at &east the $irst $e8-8as their
co&&a%oration 8ith $orei!n in)est#ent and $und #ana!ers. Thus ?othari tied up 8ith Pioneer2 the
o&dest $und in the <S #ana!in! =3 %i&&ion2 26th centur, 8ith ?e#per Corporations 8hich
c&ai#ed to %e the ei!ht &ar!est $und #ana!er in <SA #ana!in! assets o)er =*6 %i&&ion. Credit
capita& asset #ana!ers inc. that &aunched the Taurua Starshare had $or its partners2 apart $ro#
Co##on8ea&th e)e&op#ent Corporation2 London and Asian e)e&op#ent 4an72 +ani&a2
Internationa& 1inance Corporation2 Cashin!ton GRs 22."6 croreH2 and Edin%ur!h 1und +ana!ers2
<.? GRs 20 croresH.
Chi&e #an, Indian pri)ate sector #utua& $unds co&&a%orated 8ith $orei!n partners2 +or!an
Stan&e,2 8hich #ana!es $unds 8orth =00.2 %i&&ion2 chose to !o it a&one. Its issue 8as a runa8a,
success. There 8as serious contro)ers, and the ape5 court had to inter)ene. The issue 8as
hea)i&, o)er-su%scri%ed nettin! in Rs 12666 crore a!ainst the tar!et Rs -66 crore.
The )ita& aspect o$ a stron! research capa%i&it, o$ $orei!n co&&a%orators had %een reco!ni;ed and
the pu%&ic sector GIC +utua& 1und2 too2 reacted to the 8inds o$ chan!e and tied up 8ith he <.S
Soros 1und +ana!e#ent headed %, the &e!endar, Geor!e Soros 8ho #ana!es $unds 8orth
=16%i&&ion.
ICICI +utua& 1unds had #er!ed 8ith Prudentia&2 Tata +utua& 1unds 8ith Toronto o#inion
GTH. Sa#e 8a,s there are #an, co#panies #er!ed and entered in Indian #utua& $und industr,.
Important Domestic Mutual Fund Players
IH S4I +utua& 1und
S4I +utua& 1und dra8s stren!th $ro# IndiaQs pre#ier and &ar!est %an7F the State 4an7 o$ India.
Set up on Au&, 12 1/""2 the State 4an7 o$ India is the &ar!est %an7in! operation in the countr,.
S4I +utua& 1und has !ro8n tre#endous&, in ter#s o$ corpus as 8e&& as nu#%er o$ in)estors.
Toda, the, are one o$ the &ar!est %an7 sponsored +utua& 1und in the countr,. S4I ha)e &aunched
-" Sche#es2 o$ 8hich 1" ha)e %een redee#ed2 ,ie&din! handso#e returns to in)estors.
S4I +utua& 1und is a (oint )enture %et8een the State 4an7 o$ India and SociStS GSnSra&e Asset
+ana!e#ent2 one o$ the 8or&d9s &eadin! $und #ana!e#ent co#panies that #ana!e o)er
<S= --6 4i&&ion 8or&d8ide.
The, 8ere a&so the $irst 4an7 sponsored +utua& 1und to &aunch an o$$shore $und2 the India
+a!nu# 1und2 8ith a corpus o$ around Rs. 22" Crores.. Toda,2 the $und #ana!es o)er Rs.
1'"66 crores o$ assets and has a di)erse pro$i&e o$ in)estors acti)e&, par7in! their
in)est#ents across -6 acti)e sche#es. Cith a &ar!e net8or7 o)er 166 co&&ection %ranches2 2'
In)estor Ser)ice Centres2 23 In)estor Ser)ice es7s and "2 istrict Or!ani;ers2 S4I constant&,
endea)our to !et c&oser to their !ro8in! $a#i&, o$ in)estors.
S4I !i)es the in)estors the $o&&o8in! optionsB
1H Open ended sche#es
 E:uit, sche#es
+a!nu# E:uit, 1und
+a!nu# Ta5 !ain
+a!nu# Inde5 1und
+a!nu# Sector 1unds <#%re&&a
+a!nu# +u&tip&ier P&us Sche#e
+a!nu# G&o%a& 1und
 e%t Sche#es
+a!nu# NRI In)est#ent 1und
+a!nu# Inco#e P&us 1und
+a!nu# Inco#e 1und
+a!nu# Chi&drenQs 4ene$it P&an
+a!nu# +onth&, Inco#e P&an
+a!nu# Gi&t 1und
2H C&osed sche#es
+a!nu# Ta5 Pro$it 1//0
+a!nu# E:uit, Lin7ed Sa)in!s Sche#e /"
+a!nu# E:uit, Lin7ed Sa)in!s Sche#e /'
IIH 4ir&a Sun Li$e
4ir&a Sun Li$e 1inancia& Ser)ices o$$ers a ran!e o$ $inancia& ser)ices $or resident Indians and
Non Resident Indians. 4rou!ht to!ether %, t8o &ar!e2 po8er$u& and reputed %usiness houses2 the
Adit,a 4ir&a Group and Sun Li$e 1inancia&2 the ai# is to o$$er di)erse and top :ua&it, $inancia&
ser)ices to custo#ers. The +utua& 1und and Insurance co#panies pro)ide 8ea&th #ana!e#ent
and protection products to custo#ers 8hi&e the istri%ution and Securities co#panies pro)ide
%ro7era!e and tradin! ser)ices $or in)est#ent in e:uities2 de%t securities2 $i5ed deposits2 etc.
4ir&a Sun Li$e Asset +ana!e#ent Co#pan, Li#ited

4ir&a Sun Li$e +utua& 1und $o&&o8s a conser)ati)e &on!-ter# approach to in)est#ent2 8hich is
%ased on identi$,in! co#panies that ha)e !ood credit-8orthiness and are $unda#enta&&, stron!.
It p&aces a &ot o$ e#phasis on :ua&it, o$ #ana!e#ent and ris7 contro&. This is done throu!h
e5tensi)e ana&,sis that inc&udes $actor, )isits and $ie&d research. It has one o$ the &ar!est tea# o$
research ana&,sts in the industr,.
In)est#ent optionsB
T E:uit, Sche#es
T e%t Sche#es
T 4a&anced Sche#es
T O$$shore Sche#es
T
IIIH Re&iance +utua& 1und
Re&iance +utua& 1und GR+1H has %een esta%&ished as a trust under the Indian Trusts Act2 1332
8ith Re&iance Capita& Li#ited GRCLH2 as the Sett&orDSponsor and Re&iance Capita& Trustee Co.
Li#ited GRCTCLH2 as thetrustee.
R+1 has %een re!istered 8ith the Securities . E5chan!e 4oard o$ India GSE4IH. The na#e o$
Re&iance Capita& +utua& 1und has %een chan!ed to Re&iance +utua& 1und e$$ecti)e 11th. +arch
2660. Re&iance +utua& 1und 8as $or#ed to &aunch )arious sche#es under 8hich units are issued
to the Pu%&ic 8ith a )ie8 to contri%ute to the capita& #ar7et and to pro)ide in)estors the
opportunities to #a7e in)est#ents in di)ersi$ied securities.
Re&iance +utua& 1und GR+1H is one o$ India9s &eadin! +utua& 1unds2 8ith Assets <nder
+ana!e#ent GA<+H o$ Rs. -/61/ crore GA<+ as on -1st Aan 266*H and an in)estor %ase o$ o)er
-.1 #i&&ion.R+1 o$$ers in)estors a 8e&&-rounded port$o&io o$ products to #eet )ar,in! in)estor
re:uire#ents and has presence in 11" cities across the countr,.
OPTIONS AEAILA4LE TO AN INEESTOR
E4T SCHE+ES
Re&iance +onth&, Inco#e P&an
Re&iance Inco#e 1und
Re&iance +ediu# Ter# 1und
Re&iance Li:uid 1und
Re&iance Short Ter# 1und
Re&iance Gi&t Securities 1und
Re&iance 1i5ed Ter# Sche#e
Re&iance 1&oatin! Rate 1und
EO<ITL SCHE+ES
Re&iance Gro8th 1und
Re&iance Eision 1und
SECTOR SPECI1IC SCHE+ES

Re&iance 4an7in! 1und
Re&iance i)ersi$ied Po8er Sector 1und
Re&iance Phar#a 1und
IEH ICICI PR<ENTIAL +<T<AL 1<NS
Prudentia& ICICI Asset +ana!e#ent Co#pan,2 G"">B0">H a (oint )enture %et8een Prudentia&
P&c2 <?Qs &eadin! insurance co#pan, and ICICI 4an7 Ltd2 IndiaQs pre#ier $inancia& institution.
The (oint )enture 8as $or#ed 8ith the 7e, o%(ecti)e o$ pro)idin! the Indian in)estor #utua&
$und products to suit a )ariet, o$ in)est#ent needs. The A+C has a&read, &aunched a ran!e o$
products to suit di$$erent ris7 and #aturit, pro$i&es.
Prudentia& ICICI Asset +ana!e#ent Co#pan, Li#ited 8ith asset o)er Rs.-*/6'.20 crore as on
#arch -12 2663. 4oth Prudentia& and ICICI 4an7 Ltd ha)e a strate!ic &on!-ter# co##it#ent to
the rapid&, e5pandin! $inancia& ser)ices sector in India.
Options
E:uit, $unds
The $unds o$$ered under this cate!or, are the Prudentia& ICICI Gro8th P&an2 Prudentia& ICICI
1+CG 1und2 Prudentia& ICICI Techno&o!, 1und2 Prudentia& ICICI Ta5 P&an2 Prudentia& ICICI
Inde5 1und and Prudentia& ICICI Po8er.
e%t $unds
The $unds o$$ered under this cate!or, are the Prudentia& ICICI Inco#e P&an2 the Prudentia& ICICI
Gi&t-Treasur, 1und2 The Prudentia& ICICI Gi&t-In)est#ent 1und2 Prudentia& ICICI Li:uid p&an2
Prudentia& ICICI 1i5ed +aturit, P&an2 Prudentia& ICICI Short Ter# P&an2 Prudentia& ICICI Lon!
Ter# P&an and Prudentia& ICICI S8eep P&an

4a&anced $und
The $unds o$$ered under this cate!or, are the Prudentia& ICICI 4a&anced 1und and Prudentia&
ICICI Chi&d Care P&an.
EH TATA +<T<AL1<N
Corporate Pro$i&e
Tata Asset +ana!e#ent Li#ited is one o$ IndiaQs $astest !ro8in! $und #ana!e#ent co#panies
8ith #ore than Rs. 12"'2.'"G-1st au!ust 266'H crores o$ assets2 $ro# a%out 6.- #i&&ion
in)estors.
Tata Asset +ana!e#ent Ltd. is a part o$ the Tata !roup - one o$ IndiaQs &ar!est and #ost
respected industria& !roup. The Tata Group is one o$ IndiaQs %est-7no8n con!&o#erate in the
pri)ate sector 8ith a turno)er o$ around <S = 11.2 %i&&ion Lon! 7no8n $or its adherence to
%usiness ethics2 it is IndiaQs #ost respected pri)ate %usiness !roup. Cith 216200- e#p&o,ees
across /- co#panies2 it is a&so IndiaQs &ar!est e#p&o,er in the pri)ate sector.
The Group has a&8a,s %e&ie)ed in returnin! 8ea&th to the societ, 8hich it ser)es. Thus2 near&,
t8o-thirds o$ the e:uit, o$ Tata Sons2 the GroupQs pro#oter co#pan,2 is he&d %, phi&anthropic
trusts 8hich ha)e created a host o$ nationa& institutions in natura& sciences2 #edica& care2 ener!,
and the arts2 and 8hich !i)e su%stantia& annua& !rants and endo8#ents to deser)in! indi)idua&s
and institutions in the areas o$ education2 hea&thcare and socia& <p&i$t#ent.
In)est#ent Process
E)er, aspect o$ this process is ti!ht&, contro&&ed and #onitored to opti#i;e returns $or the
in)estors.
The in)est#ent process is %ui&t around $our 7e, princip&esB
The in)est#ent and ris7 contro& process concentrates on 1unda#enta&s2 E5posure2 Li:uidit, and
Tenure. Tata +utua& 1und ca&& it the 1ELT process o$ In)est#ent and ris7 contro&.
Products
E:uit, Products 4a&anced Products e%t Products
Tata Pure E:uit, 1und Tata 4a&anced 1und Tata Li:uid 1und
Tata Ta5 Sa)in! 1und Tata Loun! Citi;ensQ 1und Tata Short Ter# 4ond 1und
Tata Se&ect E:uit, 1und Tata Gi&t Securities 1und
Tata Li$e Sciences .
Techno&o!, 1und
Tata Inco#e 1und
Tata E:uit, Opportunities
1und
Tata Inco#e P&us 1und
Tata Inde5 1und Tata 1i5ed Hori;on 1und
Tata Gro8th 1und Tata +onth&, Inco#e 1und
EIH ?OTA? +AHINRA +<T<AL 1<N
?ota7 +ahindra is one o$ IndiaQs &eadin! $inancia& institutions2 o$$erin! co#p&ete $inancia&
so&utions that enco#pass e)er, sphere o$ &i$e. 1ro# co##ercia& %an7in!2 to stoc7 %ro7in!2 to
#utua& $unds2 to &i$e insurance2 to in)est#ent %an7in!2 the !roup caters to the $inancia& needs o$
indi)idua&s and corporates
?ota7 +ahindra Asset +ana!e#ent Co#pan, Li#ited G?+A+CH2 a 8ho&&, o8ned su%sidiar,
o$ ?+4L2 is the asset #ana!er $or ?ota7 +ahindra +utua& 1und G?++1H. The !roup has a net
8orth o$ around Rs.22/66 crore and e#p&o,s around 32366 e#p&o,ees across its )arious
%usinesses ser)icin! around 2 #i&&ion custo#er accounts throu!h a distri%ution net8or7 o$
%ranches2 $ranchisees2 representati)e o$$ices and sate&&ite o$$ices across 232 cities and to8ns in
India and o$$ices in Ne8 Lor72 London2 u%ai and +auritius. ?++1 o$$ers sche#es caterin! to
in)estors 8ith )ar,in! ris7- return pro$i&es and 8as the $irst $und house in the countr, to &aunch a
dedicated !i&t sche#e in)estin! on&, in !o)ern#ent securities.
Products
e%t
?ota7 4ond
?ota7 ,na#ic Inco#e
?ota7 1&oater Short Ter#
?ota7 1&oater Lon! Ter#
?ota7 Gi&t
?ota7 Inco#e P&us
4a&ance
?ota7 4a&ance
E:uit,
?ota7 E:uit, 1O1
?ota7 G&o%a& India
ATA ANALLSIS AN INTERPRETATION
TABLE NO: 1
Table so!in" A"e Pro#ile o# te $espondents
A"e No% O# $espondents Percenta"e
1&'() *+ 1,
(-'.* */ 1&
.1'.) (, ,&
.- 0 Abo1e 1* (*
Total )* 1**

Ana&,sisB This ta%&e is desi!ned to #easure the A!e Pro$i&e o$ the respondents. 03> o$
the respondents are o$ -1--" a!e !roups. 26> o$ these $a&&s under -' and a%o)e a!e !roup. 13>
o$ the respondents are o$ 2'--6 a!e !roups. Re#ainin! 10> %e&on! to 13-2" a!e !roups.
InterpretationB
1ro# the A!e Pro$i&e o$ the respondents2 it is c&ear that peop&e are in)estin! once the, earn a
re!u&ar inco#e. 3'> are a%o)e 2' ,ears 8hich #eans peop&e in)est once the, are sett&ed.
GRAPHB 1
2rap so!in" A"e Pro#ile o# te $espondents
TABLE No: (
Ta%&e sho8in! MOccupation pro$i&e o$ the respondentsN
Occupation No. O$ respondents Percenta!e
4usiness 6' 12
Pro$ession 1/ -3
House 8i$e 63 6'
Ser)ice 13 -'
Others 60 63
Tota& "6 166
Ana&,sisB
In occupation pro$i&e there are $i)e !roups na#e&, %usiness2 pro$ession2 house8i$e2 ser)ices and
others. Here pro$essiona& respondent are -3>2 ser)ices -' >2 %usiness peop&e 12 >2 others 3>
and house8i)es '>.
InterpretationB
This data sho8s that respondents $ro# pro$ession and ser)ice cate!or, are a8are o$ #utua& $unds
and ha)e a&so in)ested in it2 8hereas %usiness peop&e are a8are o$ #utua& $unds %ut the, are not
read, to in)est. Chereas2 in case o$ others GstudentH and house8i)es in)est#ent is &esser. Thus
this i#p&ies that respondents $ro# pro$essiona& and ser)ices cate!or, are !ood contri%utors to
#utua& $unds.

2$AP3: (
Graph sho8in! MOccupation pro$i&e o$ the respondents N
TABLE NO: .
Table 4o!in" Number o# Family Dependents o# te $espondent
SLNO SIPE NO >
1 6-2 13 13
2 --0 03 03
- " . A%o)e -0 -0
Ana&,sisB
In the a%o)e ta%&e2 03> o$ the respondents ha)e $a#i&, dependents.Cith in the ran!e o$ --
02 -0> o$ the respondents ha)e " and a%o)e dependents2 13> o$ the peop&e ha)e $a#i&,
dependents in the ran!e o$ 6-2.
InterpretationB
As most of the respondents are having their dependents in range of $-% and & ' above they
are more serious in investing their savings for the future of their dependents.

2$AP3'.
Graph Sho8in! Nu#%er o$ 1a#i&, ependents o$ the Respondent


TA4LE No B 0
Ta%&e sho8in!N Inco#e Pro$i&e o$ the respondentsN
Inco#e No. O$ respondents Percenta!e
4e&o8 "666 66 66
'666 to 1"666 6" 16
1'666 to 2"666 21 02
2'666 to -"666 1" -6
-'666 and a%o)e 6/ 13
Tota& "6 166
Ana&,sisB
It is c&ear $ro# the ta%&e that 02> o$ in)estors $a&& in the inco#e %rac7et o$ 1'666-2"666. -6> o$
the in)estors ha)e inco#e o$ 2'666--"666F 8here as 13> o$ the in)estors ha)e inco#e o$ -'666
and a%o)e. The re#ainin! 16> o$ the in)estors $a&& in the inco#e %rac7et o$ '666-1"666.

InterpretationB

/6> o$ the respondents earn Rs.1'666D- or #ore e)er, #onth. The #ore the, earn the
#ore the, can in)est and )ice )ersa. Peop&e earnin! &ess can in)est in s#a&& a#ounts2 8hereas
peop&e earnin! #ore can !o $or hi!her in)est#ents and ta7e hi!her ris7s $or hi!her returns.

GRAPH NoB 0
Graph sho8in!N Inco#e Pro$i&e o$ the respondentsN
TA4LE No B "
Ta%&e sho8in!N A8areness o$ In)est#ent options a#on! respondentsN
In)est#ent Option No. O$ respondents a8are Percenta!e
Insurance 0" /6
4onds 06 36
Rea& Estate 26 06
Stoc7 02 30
+utua& 1und 0- 3'
Ana&,sisB
In the a%o)e ta%&e it is $ound that /6> o$ the respondents are a8are o$ insurance236> are a8are
o$ %onds206> $or rea& estate230>on stoc7s and 3'> are a8are o$ +utua& 1unds.
InterpretationB
This ta%&e !i)es ,ou idea a%out a8areness on in)est#ent options a#on! a&& the respondents.
Here it is indicated that #utua& $und is popu&ar2 second on&, to insurance. This stud, is
conducted $or !enera& pu%&ic and #utua& $und in)estors. +utua& $unds are not as o&d as insurance
in India. 1ro# this ta%&e it is c&ear that 3' > o$ respondents are a8are o$ #utua& $unds.
GRAPH NoB "
Graph sho8in!M A8areness o$ In)est#ent options a#on! respondentsN
TA4LE No B '
Ta%&e sho8in!N In)est#ent Pro$i&e o$ the respondentsN
In)est#ent Option No. O$ respondents Percenta!e
Insurance 2" "6
4onds 1" -6
Rea& Estate 6" 16
Stoc7 2" "6
+utua& 1unds -- ''
Ana&,sisB
In a sa#p&e si;e o$ "62 ''> o$ the respondents are #utua& $und in)estors and rest o$ the# ha)e
not in)ested in #utua& $unds. The, ha)e in)ested in )arious options &i7e insurance2 %onds2 rea&
estate and stoc7s.G-0>H

InterpretationB
+ost o$ the respondents ha)e in)ested in +utua& $unds 8ith %onds and stoc7s co#in!
second. This #eans the a8areness a%out +utua& $unds ha)e pro#pted #ore and #ore persons to
in)est in +utua& $unds2 since it has a hi!h return. Stoc7s and +utua& $unds are hi!h ris7 areas
8ith hi!h returns. So peop&e are read, to ta7e #ore ris7s $or #ore returns.
GRAPH NoB '
Graph Sho8in!MIn)est#ent Pro$i&e o$ the respondentsN
TA4LEB *
Ta%&e sho8in! reason $or not in)estin! in #utua& $unds
SLNO REASON NO >
1 on9t 7no8 a%out #utua& $unds 16 1"
2 the, are ris7, 2' -/
- don9t ha)e enou!h #one, 6 6
0 happ, 8ith present in)est#ents -6 0'
Ana&,sisB
In the a%o)e ta%&e2 0'> o$ the respondents are satis$ied 8ith their present in)est#ents2 -/> o$
the respondents thin7 that +utua& $unds are ris7,2 and 1"> o$ the# sa, that the, do not 7no8
8hat +utua& $unds are.
InterpretationB
+ost o$ the respondents 8ho ha)e not in)ested in the +utua& $unds are satis$ied 8ith their
present in)est#ents2 so#e peop&e thin7 that the +utua& $unds in)o&)e ris7 and #ost i#portant is
that the 1"> o$ the respondents do not 7no8 8hat +utua& $unds are2 Chat the, do and Ho8
the, $unction.
GRAPHB*
Graph sho8in! reason $or not in)estin! in #utua& $unds
TA4LEB 3
Ta%&e sho8in! annua& in)est#ent o$ the respondents
SLNO ANN<AL INEEST+ENT NO >
1 Less than "2666 10 10
2 "2666-162666 00 00
- 162666-262666 26 26
0 A%o)e 262666 22 22
Ana&,sisB

In the a%o)e ta%&e #ost o$ the# in)estD sa)e %et8een "2666 to 162666 - 00> . 22> o$ the peop&e
sa)eDin)est a%o)e 2626662 26> o$ the respondents sa)eDin)est %et8een 162666 to 262666 and
10> o$ the# in)est &ess than "2666.
InterpretationB
As #an, respondents inco#e &ie %e&o8 Rs 12662666 p.a the, are possi%&e to sa)eDin)est on&, $or
a%out $i)e to ten thousand rupees p.a. The hi!her the, in)est2 the hi!her is the return and )ice
)ersa.
GRAPHB3
Graph sho8in! the annua& in)est#ent o$ the respondents
TA4LE NoB /
Table so!in"5 Popular Mutual Fund Products amon" te respondents6
+utua& 1und Products No.o$ respondents Percenta!e
Prudentia& ICICI 2/ 33
?ota7 +ahindra 1" 0"
H1C +utua& 1und 1/ "*
4ir&a Sun &i$e 1* "1
S4I +utua& 1und 6/ 2*
LIC +utua& 1und 63 20
Can%an7 +utua& 1und 63 20
1ran7&in Te#p&eton +.1 21 '-
Ana&,sisB
The #ost popu&ar #utua& $unds a#on! the respondents are2 Prudentia& ICICI 8ith 33>2 1ran7&in
Te#p&eton #utua& $unds 8ith '->2 H1C #utua& $unds "*>2 4ir&a Sun Li$e "1>2 ?ota7
+ahindra #utua& $unds 0">2 and rest o$ the# are 8ith a)era!e o$ around 20>and 2*>. This is
app&ica%&e $or on&, #utua& in)estors.
InterpretationB
1ro# the a%o)e it9s c&ear that ICICI and 1ran7&in Te#p&eton are popu&ar a#on! in)estors.
This is %ecause o$ the a!!ressi)e ad)ertise#ents the, e#p&o,. Ad)ertise#ents he&p a co#pan, to
ha)e a %rand i#a!e 8hich is )er, i#portant in the $ie&d o$ +utua& $unds.
GRAPH NoB /
Graph Sho8in! Popu&ar +utua& 1und Products a#on! the respondents
TABLE No: 1*

Table 4o!in"5 $an7in" o# #actors #or In1estment
1actors Si#p&e a)era!e Ran7s
Assured Return * 62
Ris7 Co)er 0 6"
Go)ern#ent Guarantee " 60
Hi!h Return * 61
Eotin! ri!ht 2 6'
Li:uidit, " 6-
Ana&,sisB
This ta%&e is desi!ned to stud, the #ost i#portant $actors $or in)estors to in)est in )arious
in)est#ent options. In)estors ha)e ran7ed Hi!h Return2 Assured Return2 Li:uidit,2 Go)ern#ent
Guarantee2 Ris7 Co)er and Eotin! Ri!ht as the i#portant $actors $or in)est#ents respecti)e&,.
InterpretationB
Returns are the #ost sou!ht a$ter criteria $or in)est#ent. In other 8ords2 returns are the 7e, $or
in)est#ents. The in)estors are not 8orried a%out the ris7 in)o&)ed. +utua& $unds are hi!h ris7
areas 8ith hi!h returns. Peop&e are read, to ta7e #ore ris7s $or #ore returns. The, are not
%othered a%out )otin! po8ers or ta5ation aspect either.
2$AP3 No: 1*
Graph Sho8in!M Ran7in! o$ $actors $or In)est#entN
Ta%&e NoB 11
Ta%&e sho8in!M In)est#ent Opinion o$ respondents i$ the returns are %et8een 1" > to 2"> and
a%o)eN
Opinion No. O$ respondents Percenta!e
Consider 12 *1
I!nore 6" 2/
Tota& 1* 166
Ana&,sisB
This ta%&e is constructed to 7no8 the opinion o$ the respondents i$ the returns are %et8een 1">
to 2">. These respondents ha)e not in)ested in +utua& 1unds. I$ the return is 1"> to 2" >2 then
*1> o$ the respondents sa, that the, #a, consider in)estin! in #utua& $unds. Chere as 2/> o$
the# sa, the, i!nore.
InterpretationB
1ro# this a&so it is c&ear that in)estors care pri#ari&, a%out one thin! on&, @ Returns. I$ the, are
assured o$ a certain return2 peop&e 8ho usua&&, don9t in)est 6r a&so read, to in)est. So return is
the %u;; 8ord $or in)est#ents. A co#pan, 8ho can pro)ide consistent returns can attract #ore
nu#%er o$ in)estors.
Graph NoB 11
Graph sho8in!M In)est#ent Opinion o$ respondents i$ the returns are %et8een 1" > to 2"> and
a%o)eN
Ta%&e NoB 12
Ta%&e sho8in! MIn)estin! Option a#on! the respondents %et8een ris7 and returnN
Returns No. O$
respondents
Percenta!e
1"> to 26> return 8ith #oderate
ris7
60 --
26> to -6> 8ith hi!h ris7 6' "6
-6> to 06> 8ith )er, hi!h ris7 62 1*
Tota& 12 166
Ana&,sisB
This ta%&e sho8s the e5pectations o$ in)estor on the returns2 the data sho8 that --> are
interested in 1" >to 26 > returns 8ith #oderate ris7. "6> sa, 26> to-6> 8ith hi!h ris7 and
$ina&&, 1*> respondents 8ant -6> to 06> 8ith )er, hi!h ris7.

InterpretationB
E)en a hi!h ris7 is o7a, $or the respondents2 as "6> su!!ested. +ore than three $ourth o$ the
respondents are not concerned a%out ris7 i$ the, !et returns $or the ris7 ta7en. This once a!ain
pro)es the $act that in)estors care #ore $or returns and not $or ris7s.
Graph No 12
Graph sho8in! MIn)estin! Option a#on! the respondents %et8een ris7 and returnN
Ta%&e NoB 1-
Ta%&e sho8in! MA8areness o$ +utua& 1und ad)ertise#ents a#on! the respondentsN
A8areness No. O$ respondents Percenta!e
Les -/ *3
No 11 22
Tota& "6 166
Ana&,sisB
ata ana&,sis sa,s that *3> are a8are o$ #utua& $und Ad)ertise#ents and 22> sa, that the, are
not a8are.
InterpretationB
A8areness a%out the product is )er, i#portant $or $inancia& ser)ice #ar7etin!2 in particu&ar2 to
succeed in #odern co#petiti)e 8or&d. The #ore the ad)ertise#ents2 the #ore it he&ps the
co#pan, to ha)e a proper %rand i#a!e and %rand is the 7e, to success in +utua& $unds as peop&e
&i7e to in)est in a popu&ar and 8e&& 7no8n co#pan,.
Graph NoB 1-
Graph sho8in!M A8areness o$ +utua& 1und ad)ertise#ents a#on! the respondentsN
Ta%&e NoB 10
Ta%&e sho8in! MThe #ost co##on +utua& 1und Co#pan, Ad)ertise#entN
+utua& 1und Co#pan, No.o$ respondents Percenta!e
ICICI Prudentia& 23 *2
?ota7 +ahindra 6/ 2-
H1C +utua& 1und 6* 13
4ir&a Sun &i$e 1/ 0/
S4I +utua& 1und 13 0'
LIC +utua& 1und 6' 1"
Can%an7 +utua& 1und 60 16
1ran7&inTe#p&eton +.1 2' '*
Ana&,sisB
*2> o$ the respondents ha)e )oted Prudentia& ICICI9s ad)ertise#ent as the #ost popu&ar one
c&ose&, $o&&o8ed %, Te#p&eton. 4ir&a and S4I2 8ith Can%an7 !ettin! the &east percenta!e.
InterpretationB
This ta%&e is desi!ned to stud, the #ost co##on ad)ertise#ent o$ +utua& 1und co#panies
a#on! the respondents. Prudentia& ICICI and 1ran7&in Te#p&eton are the popu&ar co#panies as
$ar as ad)ertise#ent !oes. Theses ad)ertise#ents ha)e he&ped these t8o co#panies to %e the
#ost respected %rands in this $ie&d.
Graph NoB 10
Graph sho8in! M The #ost co##on +utua& 1und Co#pan, Ad)ertise#entN
Ta%&e NoB 1"
Ta%&e sho8in! MIn$&uence o$ 4rand a#on! respondents 8hi&e in)estin! in +utua& 1undN
In#luence No. O$ respondents Percenta!e
(es 00 33
No 6' 12
Tota& "6 166
Ana&,sisB
This ta%&e is desi!ned to stud, the In$&uence o$ 4rand na#e 8hi&e in)estin!. Accordin! to the
stud, it is c&ear that 33> o$ respondents sa, that %randin! is )er, i#portant to %ui&d in)estors
con$idence2 and 12> o$ respondents sa, that %rand na#e is not i#portant $or the# 8hi&e
in)estin!.
InterpretationB
4rand na#e co#es a&on! 8ith e5perience2 :ua&it,2 trust 8orthiness and #ost i#portant&,
%, ad)ertise#ents. A co#pan, ac:uirin! a&& the a%o)e $eatures 8i&& ha)e a !ood %rand na#e. In
+utua& $unds2 in)estors &oo7 $or the %rand %e$ore in)estin! as 33> said. There$ore i$ the
co#pan, has to %e in the top2 creatin! a %rand na#e is )er, i#portant.
Graph NoB 1"
Graph sho8in! MIn$&uence o$ 4rand Na#e a#on! respondents 8hi&e in)estin! in +utua& 1undN
Ta%&e NoB 1'
Ta%&e sho8in! MOpinion o$ respondents on returns in +utua& 1unds co#pared to
SharesDeri)ati)esN
Opinion No. O$ respondents Percenta!e
Les -1 '2
No 1/ -3
Tota& "6 166
Ana&,sisB
This ta%&e sho8s that '2>o$ respondent sa, that #utua& $unds returns are %etter than shares or
deri)ati)es. -3> o$ respondents sa, that #utua& $unds returns are not !ood co#pared to shares or
deri)ati)es.
InterpretationB
A&& the three are ha)in! !ood returns2 as 8e&& as unpredicta%&e returns. 4ut +utua& $unds
see# to ha)e an i#pression in the respondents #ind as the, thin7 its unpredicta%i&it, is &ess
co#pared to the other t8o. In shares or deri)ati)es the )o&ati&it, is #uch #ore2 8here as in
+utua& $unds consistenc, o$ returns is #ore.
Graph NoB 1'
Graph sho8in! M Opinion o$ respondents on returns o$ +utua& 1unds co#pared to
SharesDeri)ati)esN
Ta%&e NoB 1*
Ta%&e sho8in! M In)est#ent 1ir#9s transparenc, in recent ti#esN
Transparenc, No. o$ respondents Percenta!e
Les -' *2
No 10 23
)otal "6 166
Ana&,sisB
As $ar as transparenc, is concerned the sur)e, sa,s that *2> o$ the respondents sa, that $ir#s
are transparent present&, and 23> sa, that $ir#s are not transparent as co#pared to ear&ier ti#es.
InterpretationB
Peop&e no8 a da,s 8ant e)er,thin! to %e re)ea&ed. A hidden a!enda #a7es the# conspicuous.
So in the %est interest o$ the $ir# its %etter to ha)e transparencies in their transactions.
Graph NoB 1*
Graph sho8in! M In)est#ent 1ir#9s transparenc, in recent ti#esN
Ta%&e NoB 13
Ta%&e sho8in!M Per$or#ance o$ $unds accordin! to respondentsN
1unds No. O$ respondents Percenta!e
E:uit, 1' -2
e%t -- ''
4a&anced 2- 0'
Gilt 2/ "3
Inde5 and Industr, 12 20
Ana&,sisB
This data ana&,sis sa,s that 8hich $und is per$or#in! %etter at present. It is c&ear $ro# the
response that e%t and Gi&t 1unds are per$or#in! %etter2 8here as inde5 and industr, and e:uit,
sche#es are &ess popu&ar.
InterpretationB
<nderstandin! 8hich sche#es are #ore popu&ar and 8or7 %etter 8ith in)estors is crucia& $or an,
co#pan,2 as the, can introduce sche#es re&atin! to those2 i$ not a&read, there. It is interestin! to
note that e:uit, sche#es 8hich 8ere once popu&ar 8ith the in)estors ha)e !one do8n as de%t
and !i&t $unds ha)e pic7ed up. There$ore the in)estor9s perception chan!es $ro# ti#e to ti#e and
a success$u& co#pan, needs to understand this.
Graph NoB 13
Graph sho8in!M Per$or#ance o$ $unds accordin! to respondentsN
.

1ININGS
• The #ain $indin! o$ the stud, is that2 there is no dependenc, o$ inco#e &e)e& o)er in)est#ent
in +utua& 1unds. There$ore inco#e %ein! hi!h or &o8 is not the #a(or criteria $or +utua& 1und
in)est#ents.

• The a8areness to8ards +utua& 1und is !ood2 %ut not e5ce&&ent. 1or this stud, the
co&&ected sa#p&e si;e 8as "6. out o$ the# -- are #utua& $und in)estors.
• Ne5t $indin! is that the %rand na#e o$ in)est#ent $ir# is )er, i#portant to !ain or
attract custo#ers. Out o$ "6-sa#p&e si;e 00 respondents said that %rand na#e is re:uired. On&, '
respondents said that %rand na#e is not re:uired.
• 1ro# in)estors point2 the popu&ar #utua& $und co#panies are Prudentia& ICICI2 and
1ran7&in Te#p&eton #utua& $unds.
• +ost co##on ad)ertise#ents o$ +utua& 1unds Co#panies $ro# in)estors9 point o$ )ie8
are Prudentia& ICICI 8ith *1.*/> and 1ran7&in Te#p&eton 8ith ''.''>. This sho8s that
a!!ressi)eness on ad)ertise#ents in +utua& 1unds cou&d #a7e the co#pan, a hit2 as these t8o
co#panies are the t8o popu&ar one9s as 8e&&.
• In)estors ha)e ran7ed Hi!h Return2 Assured Return2 Li:uidit,2 Go)ern#ent Guarantee2
Ris7 Co)er and Eotin! Ri!ht as the i#portant $actors $or in)est#ents respecti)e&,. Ta5 %ene$it2
surprisin!&,2 doesn9t $ind p&ace in the top $i)e.
• The transparenc, is the order o$ the da,. The o)era&& perception a%out this #atter is that
*2> o$ the respondents sa, that these da,s9 $ir#s are #ore transparent than in o&d da,s.
• Pri)ate sector +utua& 1unds are on a ra#pa!e. The #ar7et share o$ pri)ate sector #utua&
$unds is increased.
• 1ro# e5istin! #utua& $und in)estors it is $ound that the de%t $unds and !i&t $unds are
per$or#in! %etter than &ast ,ear.
• In)estors are 8orried and con$used a%out the &e!a& $or#a&ities o$ the +utua& 1und as it is
co#p&icated co#pared to other in)est#ent a)enues &i7e %an7 deposits.
• The &aunchin! up o$ ne8 sche#es %, +utua& 1und co#panies has increased the nu#%er
o$ in)estors.
• +utua& 1und has %eco#e the %u;; 8ord current&,. +ore and #ore peop&e are in)estin! in
+utua& 1unds &ate&,. Shares2 Rea& Estate2 and Insurance are present&, other hot areas $or
in)est#ent.
S<GGESTIONS D RECO++ENATIONS
• +utua& 1und co#panies shou&d %e #ore transparent 8hi&e dec&arin! their di)idends2 Net
Asset Ea&ue2 ad#inistration char!es and their accountin! nor#s.
• 4rand na#e o$ in)est#ent $ir# is )er, i#portant to !ain or attract custo#ers. +utua&
1und co#panies shou&d #a7e their ad)ertise#ents #ore a!!ressi)e&,2 so that the co##on pu%&ic
shou&d co#e to 7no8 a%out their product $eatures and there position in the #ar7et.
• It is the perception o$ in)estors that the +utua& $unds 8i&& not !i)e an, suret, on returns.
This perception shou&d %e re#o)ed $ro# their #ind. 1or this the +utua& $und co#panies need to
$or#u&ate so#e #ar7etin! strate!ies.
• This ana&,sis sho8s that +utua& $und returns are %etter than shares or deri)ati)es. So the
e5istin! in)estors are satis$ied 8ith their returns2 so the #utua& $und co#panies shou&d #a7e
e$$orts to retain the e5istin! in)estors.
• The &aunchin! up o$ ne8 sche#es %, +utua& 1und co#panies has increased the nu#%er
o$ in)estors. +ore and #ore sche#es2 %oth attracti)e as 8e&& as e$$ecti)e2 need to %e introduced
on a $re:uent %asis so as to increase the in)estor %ase.
• In)estors are 8orried and con$used a%out the &e!a& $or#a&ities o$ the +utua& 1und as it is
co#p&icated co#pared to other in)est#ent a)enues &i7e %an7 deposits. There$ore &e!a&
$or#a&ities need to %e #ini#ised and the dea&in!s ha)e to %e si#p&i$ied.
• +utua& 1unds need itse&$ to %e di$$erentiated $ro# other hot in)est#ent a)enues. +utua&
1unds #ust o$$er to the pu%&ic #ore returns2 sa$et, and ta5 %ene$its so as to attract in)estors into
in)estin! in +utua& 1unds rather than in Shares or Rea&-estate.
• Increased dere!u&ation o$ the $inancia& #ar7ets in the countr, coup&ed 8ith the
introduction o$ deri)ati)e products 8i&& o$$er tre#endous scope $or the industr, to desi!n and se&&
inno)ati)e sche#es to suit indi)idua& custo#er needs2 8hich he&ps the +utua& 1und industr,.
CONCL<SION
A percepti%&e chan!e is s8eepin! across the #utua& 1und &andscape in India. 1actors
such as chan!in! in)estor9s needs and their appetite $or ris72 e#er!ence o$ internet as a po8er$u&
p&at$or#2 and a%o)e a&& the !ro8in! co##oditi;ation o$ #utua& $und products are actin! as
#a(or cata&,sts puttin! pressure on industr, p&a,ers to $or#u&ate strate!ies to sta, the course.
4ui&din! and sustainin! a po8er$u& %rand is a&so %eco#in! an issue o$ para#ount
i#portance. Cith in)estor toda, ha)in! a ran!e o$ products to choose $ro#2 e$$ecti)e
co##unication is re:uired to reach a 8ider audience. The success o$ #ar7eter in $uture 8ou&d
depend upon his a%i&it, to use -'6-de!ree co#poundin! e$$ect o$ #edia throu!h a presence in a&&
#edia inter$aces 8ith the in)estors.
Increased dere!u&ation o$ the $inancia& #ar7ets in the countr, coup&ed 8ith the introduction o$
deri)ati)e products o$$ers tre#endous scope $or the industr, to desi!n and se&& inno)ati)e
sche#es to suit indi)idua& custo#er needs. As it is %ein! increasin!&, $e&t2 8ith the
co##oditi;ation o$ products &oo7in! i##inent2 ser)ice to in)estors and per$or#ance 8ou&d %e
the #a(or di$$erentiators in the ,ears to co#e.
BIBLIOGRAPHY
BOO84
 Evaluating Mutual Fund Performance -------- SP !ot"ari#
A.4. Carner
 +asterin! in +utua& 1unds ---------- ?. S. +urth,
 In)est#ent Ana&,sis and ---------- Prasanna Chandra
Port$o&io +ana!e#ent
InternetB
 $$$googlecom
 $$$morning%tarcom
 888.a#$i.co#
 888.ans8ers.co#
+a!a;inesB
1H Capita& +ar7et
2H 4usiness Cor&d
-H 4usiness Cee7
0H 4usiness Toda,

O<ESTIONRE

H 1Na#eB ------------------------------------
2H A!eB 1H 13 to 2" 2H 2' to -6

-H -1 to -" 0H -' and a%o)e
-H OccupationB 1H 4usiness 2H Pro$ession
-H House 8i$e 0H Ser)ice
"H Others
0.H No. o$ $a#i&, dependentsB
"H Inco#eB 1H 4e&o8 "666 2H '666 to 1"666

-H 1'666 to 2"666 0H 2'666 to -"666

"H -'666 to a%o)e
'H Chat t,pe o$ in)est#ent options are ,ou a8are o$$U

1H Insurance 2H 4onds
-H Rea& Estate 0H Stoc7
"H +utua& 1unds

*H In 8hich o$ this t,pe ha)e ,ou in)ested so $arU
1H Insurance 2H 4onds
-H Rea& Estate 0H Stoc7
"H +utua& 1unds


3H Ch, ha)e ,ou not in)ested in +utua& 1undsU
on9t 7no8 a%out +utua& 1unds Ris7,
on9t ha)e enou!h #one, Happ, 8ith present in)est#ents
/H Chat > o$ ,our inco#e or turno)er do ,ou in)est annua&&,U
Less than "666 "666 @ 16666
16666 @ 1"666 A%o)e 1"666

16H Chat are the $actor9s ,ou 8i&& consider 8hi&e in)estin! GRan7 the#H

1H Assured return
2H Ris7 co)er
-H Go)ern#ent !uarantee
0H Hi!h return
"H Eotin! ri!ht
'H Li:uidit,
11H Can ,ou na#e an, +utua& 1und productsU
1H -----------------------------------------

2H -----------------------------------------

-H ----------------------------------------

0H ----------------------------------------
12H I$ In)est#ent t,pe !i)es return %et8een 1" to 2"> and #ore respect to #ar7et ris72 8hat
8ou&d ,ou doU
1H Consider 2H I!nore
1-H I$ consider in)estin!2 ho8U
1H 1" > to 26 > return 8ith #oderate ris7
2H 26 > to -6 > 8ith hi!h ris7
-H -6 > to 06 > 8ith )er, hi!h ris7
10H Ha)e ,ou co#e across an, +utua& 1und Ad)ertise#ent9sU
1H Les 2H No
1"H I$ ,es Na#e the co#pan,

1H -------------------------------------------

2H -----------------------------------------
-H -----------------------------------------
1'H o ,ou consider that 4rand na#e is re:uired 8hi&e in)estin! in an, +utua& 1undsU
1H Les 2H No
1*H o ,ou thin7 +utua& 1und return is %etter than SharesDeri)ati)esU
1H Les 2H No
13H A$ter <TI sca# G<S-'0H +utua& 1und2 do ,ou thin7 that present da, in)est#ent $ir#s are
#ore transparent than ear&ierU
1H Les 2H No
1/H Chich 1unds GA&&ocationH are per$or#in! %etter this ,earU
1H E:uit, 1unds
2H e%t 1unds
-H 4a&anced 1unds
0H Gi&t 1unds
"H Inde5 and Industr, 1unds

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