Final

Project on Mutual fund A PROJECT REPORT ON PROJECT ON MUTUAL FUND
OF INDIABULLS FINANCIAL SERVICES LTD.
Submitted in partial fulfillment for MASTER OF BUSINESS ADMIMISTRATION
Indian Institute of Planning & Management Satbari, New Delhi-74 Submitted by :Name : Prateek Arora Class : FD1 Batch : ISBE-A FW 10/12 Enrolment NO.: D1012FWISBE-A10036-(NOI-2-NA-2044)
FINANCE DEPARTMENT Page 1
Under Guidance :CA Kuldeep Mittal Divisional manager(indiabulls)
Project on Mutual fund
ACKNOWLEDGEMENT
With regard to my Project with Mutual Fund. I would like to thank each and every one who offered help, guideline and support whenever required. I would like to sincerely acknowledge the constant support and guidance of my mentor Mr. Anil Kumar. He provided me with all the resources and autonomy which made me put in the best of Efforts. I would also like to express my gratitude towards Mr. Kuldeep Mittal for giving me the opportunity to undergo summer internship at INDIABULLS HOUSE. I am extremely grateful to the whole employee Fraternity of INDIABULLS HOUSE, for their acceptance and support and for being so friendly. The opportunity to work for INDIABULLS HOUSE has enlightened my approach towards my chosen field and gave me a fantastic corporate exposure. Last but not the least I would like to thank my co-trainees Mr. Abhijit and Ms. Roshi Kapoor for helping me in the research work and who were always there to extend a hand of co-operation.
PRATEEK ARORA
FINANCE DEPARTMENT
Page 2
CERTIFICATE This is to certify that Mr. Prateek Arora a student of IIPM New Delhi has completed project work on MUTUAL FUNDS under my guidance and supervision. I certify that this is an original work and has not been copied from any source.
Name of Project Guide CA Kuldeep Mittal
FINANCE DEPARTMENT
Page 3
DECLERATION I hereby declare that this Project Report entitled PROJECT ON MUTUTAL FUND submitted in the partial fulfillment of the requirement of Master of Business Administration (MBA) of THE INDIAN INSTITUTE OF PLANNING AND MANAGEMET, NEW DELHI is based on primary & secondary data found by me in various departments, books, magazines and websites & Collected by me in under guidance of C.A. Kuldeep Mittal.
DATE: Enrollment no.: D1012FWISBE-A10036-(NOI-2-NA-2044)
PRATEEK ARORA MBA (Two Years)
FINANCE DEPARTMENT
Page 4
EXECUTIVE SUMMARY
In few years Mutual Fund has emerged as a tool for ensuring ones financial well being. Mutual Funds have not only contributed to the India growth story but have also helped families tap into the success of Indian Industry. As information and awareness is rising more and more people are enjoying the benefits of investing in mutual funds. The main reason the number of retail mutual fund investors remains small is that six in ten people with incomes in India do not know that mutual funds exist. But once people are aware of mutual fund investment opportunities, the number who decide to invest in mutual funds increases to as many as one in five people. The trick for converting a person with no knowledge of mutual funds to a new Mutual Fund customer is to understand which of the potential investors are more likely to buy mutual funds and to use the right arguments in the sales process that customers will accept as important and relevant to their decision. This Project gave me a great learning experience and at the same time it gave me enough scope to implement my analytical ability. The analysis and advice presented in this Project Report is based on market research on the saving and investment practices of the investors and preferences of the investors for investment in Mutual Funds. This Report will help to know about the investors Preferences in Mutual Fund means Are they prefer any particular Asset Management Company (AMC), Which type of Product they prefer, Which Option (Growth or Dividend) they prefer or Which Investment
Strategy they follow (Systematic Investment Plan or One time Plan). This Project as a whole can be divided into two parts. The first part gives an insight about Mutual Fund and its various aspects, the Company Profile, Objectives of the study, Research Methodology. One can have a brief knowledge about Mutual Fund and its basics through the Project.
FINANCE DEPARTMENT
Page 6
CONTENTS
Acknowledgement Declaration Executive Summary
FINANCE DEPARTMENT
Page 7
COMPANY PROFILE
Indiabulls Financial Services Limited:
FINANCE DEPARTMENT
Page 8

Indiabulls Financial Services Limited was incorporated on January 10, 2000 as M/s Orbis Infotech Private Limited at New Delhi under the Companies Act, 1956 with Registration No. 55 103183. The name of the Company was changed to M/s. Indiabulls Financial Services Private Limited on March 16, 2001 due to change in the main objects of the Company from Infotech business to Investment & Financial Services business.
It became a Public Limited Company on February 27, 2004 and the name of the Company was changed to M/s. Indiabulls Financial Services Limited. The Company was promoted by three engineers from IIT Delhi, and has attracted more than Rs.700 million as investments from venture capital, private equity and institutional investors such as LNM India Internet Ventures Ltd., Transatlantic Corporation Ltd., Farallon Capital Partners, L.P., R R Capital Partners L.P., and Infinity Technology Trustee Pvt. Ltd. and has developed significant relationships with large commercial banks such as Citibank, HDFC Bank, Union Bank, ICICI Bank, ABN Amro Bank, Standard Chartered Bank, Lord Krishna Bank and IL&FS. The Company and its subsidiaries have facilities from the above mentioned banks and financial institutions aggregating to millions.
The Company headquarters are co-located in Mumbai and Delhi, allowing it to access the two most important regions for Indian financial markets, the Western region including Mumbai, rest of Maharashtra and Gujarat; and the Northern region, including the National Capital Territory of Delhi, nearby cities, parts of Haryana, Uttar Pradesh and Punjab; and access the highly skilled and educated workforce in these cities.
FINANCE DEPARTMENT
Page 9

Origin of the company
The Company was established by three engineers from IIT Delhi, and has attracted significant amount of investments from venture, private equity and institutional investors. The details are as follows:
Sameer Gehlaut, Chairman, CEO & Whole Time Director
Rajiv Rattan, President, CFO & Whole Time Director:
FINANCE DEPARTMENT
Page 10

Saurabh Mittal, Director:
FINANCE DEPARTMENT
Page 11
1.2 Main Objects of the Company
1. To hold investments in various step-down subsidiaries for investing, acquiring, holding, purchasing or procuring equity shares, debentures, bonds, mortgages, obligations, securities of any kind issued or guaranteed by the Company.
2. To provide financial consultancy services; to provide investment advisory services on the internet or otherwise
3. To conduct the business of sale, purchase, distribution and transfer of shares, debts, instruments and hybrid financial instruments
4. To conduct depository participant services; to conduct de-materialization and rematerialization of shares
5. To receive funds, deposits and investments from the public, Government agencies, financial institutions and corporate bodies
6. To carry on the business of portfolio management services, investment advisory services; custodial services; asset management services
7. To carry on the business of financing; provide lease and hire purchase services; to provide consultancy in the area of lease and hire purchase financing.
FINANCE DEPARTMENT
Page 12

8. To operate mutual funds; receive funds from investors; equity or debt instrument research activity instrument in debt and/or equity instruments.
BUSINESS MODEL
The Company and its subsidiaries have a vast client base spread all over India and have been augmenting its client base across the country, which makes its business model a low risk model as compared to a business model which may be dependent on very few clients. The companys revenues are largely based on fee/commission income generated through providing securities brokerage & related financial services to individual investors and independent advisors. The Company and its subsidiaries focus on a core client base of individual investors and the marketing associates who serve them.
The Company offers the following products and services in the financial markets: Stocks Options and Futures 25 Depository Services Commodities Insurance Products Mutual Funds Bonds and Debt Products
FINANCE DEPARTMENT
Page 13
GEOGRAPHICAL DISTRIBUTION OF BRANCHES
ISL has a national presence through its 160 branches, covering 18 states. The locations of the offices have been selected based on the demand of financial products in any particular city.
1.4 Functional Departments of the Organization. A company organized with a functional structure groups people together into functional departments such as purchasing, accounts, production, sales, marketing, advertising, subscriptions, Outstation business development, Book fairs and

Seminar etc.. These departments would normally have functional heads that may be called managers or directors depending on whether the function is represented at board level. Functional structures are perhaps the most common organizational model used by companies; alternatives include matrix arrangements or business unit teams.
2.1 Business Update:
Year-on-Year (Y-o-Y) Comparison Q1 FY 10-11 Key Financial Highlights (Q1 FY 10-11 v/s Q1 FY 09-10) Q1 FY 10-11 Q1 FY 09-10 Growth
FINANCE DEPARTMENT
Page 15

Total revenues (Rs. 471.09 Cr.) PBT (Rs. Cr.) PAT (Rs. Cr.) EPS (Rs.) 199.80 133.58 4.24 111.65 74.07 2.65 78.95% 80.34% 60.00% 395.99 18.97%
Quarter-on-Quarter (Q-o-Q) Comparison Q1 FY 10-11 Key Financial Highlights (Q1 FY 10-11 v/s Q4 FY 09-10)
Q1 FY 10-11 Total (Rs. Cr.) PBT (Rs. Cr.) PAT (Rs. Cr.) 199.80 133.58 Revenues 471.09
Q1 FY 09-10 428.56
Growth 9.92%
143.60 94.36
39.14% 41.56%
5.00% 6.00% 14.00%
Q1 FY 09-10
MORTGAGE CORPORATE 50.00% SME CV
25.00%
PL
EPS (Rs.)
4.24
2.99
41.81%
2.3 Asset composition :

6.00% 6.00%
Q1 FY 10-11
1.00% MORTGAG E CORPORA TE SME CV
18.00% 69.00%
Increasing share of lowrisk mortgage loans Composition of long tenure loans up to 69% and will result in sustained asset growth Medium term loans are down to 31% of the overall loans from 56% in Q1 FY 0910 Growth in mortgage loans will lead to lower provisioning costs
2.4 Improving Liability Profile:
FINANCE DEPARTMENT
Page 17
Q1 FY 09-10
2.00% BANK LOANS 36.00% 62.00% CP NCDs
CRISIL Rating Report on Indiabulls Financial Services Ltd.: IBFSLs resource profile has gradually improved over the past two years, with lower dependence on short-term market borrowing, stronger and larger number of lender relationships, and lower borrowing costs.
NCD Issuance: In July 2010 IBFSL has raised Rs 1,260 Cr. from allotment of 3 years secured redeemable NonConvertible Debenture (NCDs) to leading Banks, PFs and Financial Institutions. Shift towards long term debt and NCDs from large number of public sector banks and financial institutions at competitive rates. Company to further focus on diversifying its sources of funding
FINANCE DEPARTMENT
Page 18

10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 Q1 FY 09- Q2 FY 09- Q3 FY 09- Q4 FY 09- Q1 FY 1010 10 10 10 11
AA (Stable) Rating from ICRA (An Associate of Moodys Investors Service) and CARE to contribute towards efficient management of cost of funds as the company enhances its borrowing programme to fund its expanding loan portfolio Company has been able to avail long term loans from PSU banks at very competitive rates for its home loans portfolio
2.6 Headroom for growth :
FINANCE DEPARTMENT
Page 19

10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 Q1 FY 09-10 Q2 FY 09-10 Q3 FY 09-10 Q4 FY 09-10 Q1 FY 10-11 NET WORTH BORROWINGS
CRAR of 28.48% provides for considerable headroom for growth of loan portfolio for the next 3 years. Company to focus on long duration term loans and NCDs to fund expansion of its asset book
2.7 Income Sources :
11.00%
2.00%
87.00% INTERST INCOME FEE INCOME
Steady long term and sustained loan book growth to further increase contribution of Interest Income

Steady growth in disbursements and enhanced crossselling of related services to borrowers will expand Fee Income and also improve costincome ratio Improving recoveries from writtenoff loan assets will steadily grow
2.8 Improving Cost-Income Ratio

50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 46.36% 36.56% 33.16% 25.19% 26.54%
Q1 FY 09-10 Q2 FY 09-10 Q3 FY 09-10 Q4 FY 09-10 Q1 FY 10-11
Steadily growing portfolio and income will further improve the cost income ratio Improving cost income ratio will help stabilize spreads as the company expands its portfolio towards low risk mortgage assets
2.9 Stable Asset Quality :
FINANCE DEPARTMENT
Page 21

2.00% 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% Q1 FY 09-10 Q2 FY 09-10 Q3 FY 09-10 Q4 FY 09-10 Q1 FY 10-11 0.44% 0.90% 0.90% 1.72% 1.64%
Net NPA as % of AUM CRISIL Rating Report on India bulls Financial Services Ltd.: Mortgage financing is less susceptible to economic cycles in terms of growth and portfolio quality vis-vis other retail asset classes such as auto loans and personal loans. CRISIL, therefore, believes that IBFSLs shift of business focus to mortgages will lead to a structural improvement in the companys asset quality. NPA Levels to reduce further as company shifts its product mix towards low risk mortgage assets Historical baggage of high risk assets constitutes major portion of the NPAs and will continuously comedown with asset growth mainly in mortgage assets
FINANCE DEPARTMENT
Page 22
SECTOR OVERVIEW
INDIAN FINANCIAL SERVICES INDUSTRY
India is a large and growing economy with rapidly expanding financial services sector. The sector has witnessed a transformation over the last decade as a result of the economic liberalization which started in 1991. Reforms are continuing as part of the overall structural reforms aimed at improving the productivity and efficiency of the economy. The role of an integrated financial infrastructure is to stimulate and sustain economic growth.
The US$28 billion Indian financial services sector has grown at around 15 per cent and has displayed stability for the last several years, even when other markets in the Asian region were facing a crisis. This stability was ensured through the resilience that has been built into the system over time. The financial services sector has kept pace with the growing needs of corporate and other borrowers. Banks, capital market participants, insurers and mutual fund companies have developed a wide range of products and services to suit varied customer requirements.
FINANCE DEPARTMENT
Page 23
The Reserve Bank of India (RBI) has successfully introduced a regime where interest rates are more in line with market forces. Financial institutions have combated the reduction in interest rates and pressure on their margins by constantly innovating and targeting attractive consumer segments. Banks and trade financiers have also played an important role in promoting foreign trade of the country.
CAPITAL MARKETS
The Indian capital markets have undergone a substantial change over the last decade. The market has also witnessed substantial progress in terms of regulatory reforms, application of technology to trading and settlement, and sophistication of listed securities including single stock futures and options. These have been accompanied by an accelerated growth in trading volumes, with BSE and NSE combined average daily turnover expanding approximately from Rs.4800 million in 1995-96 to approximately Rs.232,094 million in April 2004.
India is now placed among the mature markets of the world. With over 20 million shareholders, India has the third largest investor base in the world after USA and Japan. Regulatory changes, increased capital requirement, greater customer sophistication and application of technology have forced the brokerage industry to consolidate.
FINANCE DEPARTMENT
Page 24
Over the last 7 years, the market share of the top 5 brokers has increased from 6% (1996-97) to 13% (December, 2003), with most of the consolidation coming in the last 2 years. The consolidation in the online business is even greater, with the top 5 players owning more than 90% of the market. This consolidation is expected to continue, and provide an opportunity for the top broker to own 15% market share or more over the next 3-4 years.
INSURANCE SECTOR
With the opening of the market, foreign and private Indian players are keen to convert untapped market potential into opportunities by providing tailor-made products. The presence of a host of new players in the sector has resulted in a shift in approach and the launch of innovative products, services and valueadded benefits. Foreign majors have entered the country and announced joint ventures in both life and non-life areas. Major foreign players include New York Life, Aviva, Tokio Marine, Allianz, Standard Life, Lombard General, AIG, AMP and Sun Life among others. With competition, the erstwhile state sector companies have become aggressive in terms of product offerings, marketing and distribution. The Insurance Regulatory and Development Authority (IRDA) has played a proactive role as a regulator and a facilitator in the sectors development. The size of the market presents immense opportunities to new players with only 20 per cent of the countrys insurable population currently insured.
FINANCE DEPARTMENT
Page 25
There are four public sector and nine private sector insurance companies operating in general/non-life insurance business with a premium income of over US$ 2.58 billion. The markets potential has been estimated to have a premium income of US$ 80 billion with a potential size of over 300 million people. The General Insurance Corporation (GIC) (which covers the non-life sector) had a total premium income of US$ 2 billion in 2001-02. This has the potential to reach US$ 9 billion in the next five years.
Mutual Funds Sector Over the past ten years, the Indian mutual fund industry has been one of the fastest growing sectors in the Indian capital and financial markets. The industry has grown in size by about 200 percent from March 1993 to December 2003, at Rs.1.40 trillion in terms of assets under management. The rapid growth has led to considerable changes in regulation, the structure of funds available and the composition of net assets across various industry segments, as well as in the portfolio of investment funds.Other financial services sectors are growing rapidly too, partly fuelled by recent structural changes, such as the opening up of the Insurance sector for private insurance companies as stated above, and increased investor appetite for market linked instruments (such as equities, mutual funds etc.) due to the rapid decline in local interest rates and commensurate reduction in attractiveness of fixed income instruments. The retail financial services sector is expected to grow at very high rates and the market share leaders will be able to enjoy exceptional growth if they can execute on providing diversified services at low cost to a large number of clients with world class service standards.
The major players in the Indian Mutual Fund Industry are:
Rank Scheme Name
Date NAV (Rs.)
HDFC Capital Builder 13 Fund - Growth Apr 2011
113.89
SBI
Gold
Exchange 13 Apr 2011
2092.91
Traded Scheme
Tata Balanced Fund - 13 Growth Apr 2011
83.95
Tata Equity P/E Fund - 13 Growth
49.03
Sahara Liquid Fund - Fixed Pricing Option - Growth
HDFC Growth
Equity
Fund
Axis
Liquid
Fund
Institutional - Growth
Bharti
AXA
Treasury
Advantage Fund - Regular Growth FINANCE DEPARTMENT
Apr 2011 13 Apr 2011 13 Apr 2011 13 Apr 2011 13 Apr 2011
1784.38
288.37
1089.90
1173.78
Page 27
MUTUAL FUNDS
ALL ABOUT MUTUAL FUNDS WHAT IS MUTUAL FUND BY STRUCTURE BY NATURE EQUITY FUND DEBT FUNDS BY INVESTMENT OBJECTIVE OTHER SCHEMES PROS & CONS OF INVESTING IN MUTUAL FUNDS ADVANTAGES OF INVESTING MUTUAL FUNDS DISADVANTAGES FUNDS MUTUAL FUNDS INDUSTRY IN INDIA MAJOR PLAYERS OF MUTUAL FUNDS IN INDIA HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY CATEGORIES OF MUTUAL FUNDS
OF
INVESTING
MUTUAL
INVESTMENT STRATEGIES WORKING OF A MUTUAL FUND GUIDELINES OF THE SEBI FOR MUTUAL FUND COMPANIES DISTRIBUTION CHANNELS DOES FUND PERFORMANCE AND RANKING PERSIST? PORTFOLIO ANALYSIS TOOLS
RESEARCH REPORT OBJECTIVE OF RESEARCH SCOPE OF THE STUDY DATA SOURCES SAMPLING DATA ANALYSIS MUTUAL FUND AND ITS VARIOUS ASPECTS Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. The joint ownership of the fund is thus Mutual, i.e. the fund belongs to all investors. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion the number of units owned by them.
FINANCE DEPARTMENT
Page 29

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 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.
FINANCE DEPARTMENT
Page 30
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 ADVANTAGES OF MUTUAL FUND Portfolio Diversification Professional management Reduction / Diversification of Risk Liquidity Flexibility & Convenience Reduction in Transaction cost Safety of regulated environment Choice of schemes Transparency
FINANCE DEPARTMENT
Page 31
DISADVANTAGE OF MUTUAL FUND No control over Cost in the Hands of an Investor No tailor-made Portfolios Managing a Portfolio Funds Difficulty in selecting a Suitable Fund Scheme
FINANCE DEPARTMENT
Page 32
CATEGORIES
OF
MUTUAL
FUND
FINANCE DEPARTMENT
Page 33
Project on Mutual fund Mutual funds can be classified as follow :

Based on their structure:
Open-ended funds: Investors can buy and sell the units from the fund, at any point of time.
Close-ended funds: These funds raise money from investors only once. Therefore, after the offer period, fresh investments can not be made into the fund. If the fund is listed on a stocks exchange the units can be traded like stocks (E.g., Morgan Stanley Growth Fund).
Based on their investment objective: Equity funds: These funds invest in equities and equity related
instruments. With fluctuating share prices, such funds show volatile performance, even losses. However, short term fluctuations in the market, generally smoothens out in the long term, thereby offering higher returns at relatively lower volatility. At the same time, such funds can yield great capital appreciation as, historically, equities have outperformed all asset classes in the long term. Hence, investment in equity funds should be considered for a period of at least 3-5 years. It can be further classified as: i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is tracked. Their portfolio mirrors the benchmark
index both in terms of composition and individual stock weightages. ii) Equity diversified funds- 100% of the capital is invested in equities spreading across different sectors and stocks.
FINANCE DEPARTMENT
Page 34

iii|) Dividend yield funds- it is similar to the equity diversified funds except that they invest in companies offering high dividend yields. iv) Thematic funds- Invest 100% of the assets in sectors which are related through some theme. e.g. -An infrastructure fund invests in power, construction, cements sectors etc. v) Sector funds- Invest 100% of the capital in a specific sector. e.g. A banking sector fund will invest in banking stocks. vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.
Balanced fund: Their investment portfolio includes both debt and equity. As a result, on the risk-return ladder, they fall between equity and debt funds. Balanced funds are the ideal mutual funds vehicle for investors who prefer spreading their risk across various instruments. Following are balanced funds classes: i) Debt-oriented funds -Investment below 65% in equities. ii) Equity-oriented funds -Invest at least 65% in equities, remaining in debt. Debt fund: They invest only in debt instruments, and are a good option for investors averse to idea of taking risk associated with

equities. Therefore, they invest exclusively in fixed-income
instruments like bonds, debentures, Government of India securities; and money market instruments such as certificates of deposit (CD), commercial paper (CP) and call money. Put your money into any of these debt funds depending on your investment horizon and needs. i) Liquid funds- These funds invest 100% in money market instruments, a large portion being invested in call money market. ii) Gilt funds ST- They invest 100% of their portfolio in government securities of and T-bills. iii) Floating rate funds - Invest in short-term debt papers. Floaters invest in debt instruments which have variable coupon rate. iv) Arbitrage fund- They generate income through arbitrage opportunities due to mis-pricing between cash market and derivatives market. Funds are allocated to equities, derivatives and money markets. Higher proportion (around 75%) is put in money markets, in the absence of arbitrage opportunities. v) Gilt funds LT- They invest 100% of their portfolio in long-term government securities. vi) Income funds LT- Typically, such funds invest a major portion of the portfolio in long-term debt papers. vii) MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an exposure of 10%-30% to equities.
viii) FMPs- fixed monthly plans invest in debt papers whose maturity is in line with that of the fund. INVESTMENT STRATEGIES 1. Systematic Investment Plan: under this a fixed sum is invested each month on a fixed date of a month. Payment is made through post dated cheques or direct debit facilities. The investor gets fewer units when the NAV is high and more units when the NAV is low. This is called as the benefit of Rupee Cost Averaging (RCA) 2. Systematic Transfer Plan: under this an investor invest in debt oriented fund and give 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.
FINANCE DEPARTMENT
Page 37
RESEARCH METHODOLOGY
This report is based on primary as well secondary data, however primary data collection was given more importance since it is overhearing factor in attitude studies. One of the most important users of research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem .It also helps in collecting the vital information that is required by the top management to assist them for the better decision making both day to day decision and critical ones. Data sources: Research is totally based on primary data. Secondary data can be used only for the reference. Research has been done by primary data collection, and primary data has been collected by interacting with various people. The secondary data has been collected through various journals and websites.
Duration of Study: The study was carried out for a period of eight weeks, from 15th June 2011 to 10th August 2011. Sampling: Sampling procedure:

The sample was selected through different year of financial statement of the company and through various observations in the company while doing internship and by past performance of mutual fund . The data has been analyzed by using mathematical/Statistical tool. Sample design: Data has been presented with the help of bar graph, pie charts, line graphs etc.
Limitation of study
Possibility of error in data interpretation because data collected from different sources and different years of balance sheet which may cause to possibility of error.
Sample size is based on number of assumption for investment in Mutual Fund. The sample size may not adequately represent the whole market.
Time limitation.
FINANCE DEPARTMENT
Page 39
DATA ANALYSIS Why has it become one of the largest financial instruments?
If we take a look at the recent scenario in the Indian financial market then we can find the market flooded with a variety of investment options which includes mutual funds, equities, fixed income bonds, corporate debentures, company fixed deposits, bank deposits, PPF, life insurance, gold, real estate etc. all these investment options could be judged on the basis of various parameters such as- return, safety convenience, volatility and liquidity. measuring these investment options on the
basis of the mentioned parameters, we get this in a tabular form
Return
Safety
Volatility Liquidit y
Convenie nce Moderate
Equity
High
Low
High
High
Bonds
Moderate
High
Moderate Moderate High
Co. Debenture s Co. FDs
Moderate
Moderate
Moderate Low
Low
Moderate
Low
Low
Low
Moderate
FINANCE DEPARTMENT
Page 40

Bank Deposits PPF Moderate High Low Moderate High Low High Low High High
Life Insurance
Low
High
Low
Low
Moderate
Gold
Moderate
High
Moderate Moderate Gold
Real Estate Mutual Funds
High
Moderate
High
Low
Low
High
High
Moderate High
High
We can very well see that mutual funds outperform every other investment option. On three parameters it scores high whereas its moderate at one. comparing it with the other options, we find that equities gives us high returns with high liquidity but its volatility too is high with low safety which doesnt makes it favourite among persons who have low risk- appetite. Even the convenience involved with investing in equities is just moderate. Now looking at bank deposits, it scores better than equities at all fronts but lags badly in the parameter of utmost important ie; it scores low on return , so its not an happening option for person who can afford to take risks for higher return. The other option offering high return is real estate but that even comes with high volatility and moderate safety level, even the liquidity and convenience involved are too low. Gold have always been a favourite among Indians but when we look at

it as an investment option then it definitely doesnt gives a very bright picture. Although it ensures high safety but the returns generated and liquidity are moderate. Similarly the other investment options are not at par with mutual funds and serve the needs of only a specific customer group. Straightforward, we can say that mutual fund emerges as a clear winner among all the options available. The reasons for this being:
I) Mutual funds combine the advantage of each of the investment products: mutual fund is one such option which can invest in all other investment options. Its principle of diversification allows the investors to taste all the fruits in one plate. just by investing in it, the investor can enjoy the best investment option as per the investment objective.
II)dispense the shortcomings of the other options: every other investment option has more or les some shortcomings. Such as if some are good at return then they are not safe, if some are safe then either they have low liquidity or low safety or both.likewise, there exists no single option which can fit to the need of everybody. But mutual funds have definitely sorted out this problem. Now everybody can choose their fund according to their investment objectives.
III) Returns get adjusted for the market movements: as the mutual funds are managed by experts so they are ready to switch to the profitable option along with the market movement. Suppose they predict that market is going to fall then they
FINANCE DEPARTMENT
Page 42

can sell some of their shares and book profit and can reinvest the amount again in money market instruments.
IV) Flexibility of invested amount: Other then the above mentioned reasons, there exists one more reason which has established mutual funds as one of the largest financial intermediary and that is the flexibility that mutual funds offer regarding the investment amount. One can start investing in mutual funds with amount as low as Rs. 500 through SIPs and even Rs. 100 in some cases.
Portfolio analysis tools:
With the increasing number of mutual fund schemes, it becomes very difficult for an investor to choose the type of funds for investment. By using some of the portfolio analysis tools, he can become more equipped to make a well informed choice. There are many financial tools to analyze mutual funds. Each has their unique strengths and limitations as well. Therefore, one needs to use a combination of these tools to make a thorough analysis of the funds. The present market has become very volatile and buoyant, so it is getting difficult for the investors to take right investing decision. So the easiest available option for investors is to choose the best performing funds in terms of returns which have yielded maximum returns. But if we look deeply to it, we can find that the returns are important but it is also important to look at the quality of the returns. Quality determines how much risk a fund is taking to generate those returns. One can make a judgment on the
FINANCE DEPARTMENT
Page 43

quality of a fund from various ratios such as standard deviation, Sharpe ratio, beta, trey nor measure, R-squared, alpha, portfolio turnover ratio, total expense ratio etc. Now I have compared two funds of SBI on the basis of standard deviation, beta, Rsquared, Sharpe ratio, portfolio turnover ratio and total expense ratio. So before going into details, lets have a look at these ratios:
Standard deviation: in simple terms standard deviation is one of the commonly used statistical parameter to measure risk, which determines the volatility of a fund. Deviation is defined as any variation from a mean value (upward & downward). Since the markets are volatile, the returns fluctuate every day. High standard deviation of a fund implies high volatility and a low standard deviation implies low volatility.
Beta analysis: Beta is used to measure the risk. It basically indicates the level of volatility associated with the fund as compared to the market. In case of funds, as compared to the market. In case of funds, beta would indicate the volatility against the benchmark index. It is used as a short term decision making tool. A beta that is greater than 1 means that the fund is more volatile than the benchmark index, while a beta of less than 1 means that the fund is more volatile than the benchmark index. A fund with a beta very close to 1 means the funds performance closely matches the index or benchmark. The success of beta is heavily dependent on the correlation between correlation between a fund and its benchmark. Thus, if the funds portfolio doesnt have a relevant benchmark index then a beta wo1\2Q2QQuld be grossly inappropriate.

For example if we are considering a banking fund, we should look at the beta against a bank index.
R-Squared (R2): R squared is the square of R (i.e.; coefficient of correlation). It describes the level of association between the funs market volatility and market risk. The value of R- squared ranges from0 to1. A high R- squared (more than 0.80) indicates that beta can be used as a reliable measure to analyze the performance of a fund. Beta should be ignored when the r-squared is low as it indicates that the fund performance is affected by factors other than the markets.
How do investors choose between funds? When the market is flooded with mutual funds, its a very tough job for the investors to choose the best fund for them. Whenever an investor thinks of investing in mutual funds, he must look at the investment objective of the fund. Then the investors sort out the funds whose investment objective matches with that of the investors. Now the tough task for investors start, they may carry on the further process themselves or can go for advisors like SBI, HDFC . Of course the investors can save their money by going the direct route i.e. through the AMCs

directly but it will only save 1-2.25% (entry load) but could cost the investors in terms of returns if the investor is not an expert. So it is always advisable to go for MF advisors. The mf advisors thoughts go beyond just investment objectives and rate of return. Some of the basic tools which an investor may ignore but an mf advisor will always look for are as follow:
1. Rupee cost averaging:
The investors going for Systematic Investment Plans (SIP) and Systematic Transfer Plans(STP) may enjoy the benefits of RCA (Rupee Cost Averaging). Rupee cost averaging allows an investor to bring down the average cost of buying a scheme by making a fixed investment periodically, like Rs 5,000 a month and nowadays even as low as Rs. 500 or Rs. 100. In this case, the investor is always at a profit, even if the market falls. In case if the NAV of fund falls, the investors can get more number of units and vice-versa. This results in the average cost per unit for the investor being lower than the average price per unit over time.
The investor needs to decide on the investment amount and the frequency. More frequent the investment interval, greater the chances of benefiting from lower prices. Investors can also benefit by increasing the SIP amount during market downturns, which will result in reducing the average cost and enhancing returns. Whereas STP allows investors who have lump sums to park the funds in a low-risk fund like liquid funds and make periodic transfers to another fund to take advantage of rupee cost averaging.
2. Rebalancing:
Rebalancing involves booking profit in the fund class that has gone up and investing in the asset class that is down. Trigger and switching are tools that can be used to rebalance a portfolio. Trigger facilities allow automatic redemption or switch if a specified event occurs. The trigger could be the value of the investment, The net asset value of the scheme, level of capital appreciation, level of the market indices or even a date. The funds redeemed can be switched to other specified schemes within the same fund house. Some fund houses allow such switches without charging an entry load. To use the trigger and switch facility, the investor needs to specify the event, the amount or the number of units to be redeemed and the scheme into which the switch has to be made. This ensures that the investor books some profits and maintains the asset allocation in the portfolio.
3. Diversification:
Diversification involves investing the amount into different options. In case of mutual funds, the investor may enjoy it afterwards also through dividend transfer option. Under this, the dividend is reinvested not into the same scheme but into another scheme of the investor's choice. For example, the dividends from debt funds may be transferred to equity schemes. This gives the investor a small exposure to a new asset class without risk to the principal amount. Such transfers may be done with or without entry loads, depending on the MF's policy.
4. Tax efficiency:
Tax factor acts as the x-factor for mutual funds. Tax efficiency affects the final decision of any investor before investing. The investors gain through either dividends or capital appreciation but if they havent considered the tax factor then they may end loosing. Debt funds have to pay a dividend distribution tax of 12.50 per cent (plus surcharge and education cess) on dividends paid out. Investors who need a regular stream of income have to choose between the dividend option and a systematic withdrawal plan that allows them to redeem units periodically. SWP implies capital gains for the investor. If it is short-term, then the SWP is suitable only for investors in the 10-per-cent-tax bracket. Investors in higher tax brackets will end up paying a higher rate as shortterm capital gains and should choose the dividend option.
If the capital gain is long-term (where the investment has been held for more than one year), the growth option is more tax efficient for all investors. This is because investors can redeem units using the SWP where they will have to pay 10 per cent as long-term capital gains tax against the 12.50 per cent DDT paid by the MF on dividends. All the tools discussed over here are used by all the advisors and have helped investors in reducing risk, simplicity and affordability. Even then an investor needs to examine costs, tax implications and minimum applicable investment amounts before committing to a service.
What are the most lucrative sectors for mutual fund managers?
FINANCE DEPARTMENT
Page 48

This is a question of utmost interest for all the investors even for those who dont invest in mutual funds. Because the investments done by the MFs acts as trendsetters. The investments made by the fund managers are used for prediction. Huge investments assure liquidity and reflects appositive picture whereas tight investment policy reflects crunch and investors may look forward for a gloomy picture. Their investments show that which sector is hot? And will set the market trends. The expert management of the funds will always look for profitable and high paying sectors. So we can have a look at most lucrative sector to know about the recent trends:
Sector name
No. of MFs betting on it
Automotive
255
banking & financial 196 services cement construction consumer durables conglomerates Chemicals consumer
FINANCE DEPARTMENT
& 237
51 218 259
non 146
Page 49

durables engineering & capital 317 goods food & beverages information technology media entertainment Manufacturing metals& mining Miscellaneous oil & gas Pharmaceuticals Services Telecom Tobacco Utility 259 275 250 290 250 200 264 150 225 & 218 175 284
From the above data collected we can say that engineering & capital goods sector has emerged as the hottest as most of the funds are betting on it. We can say that this sector is on boom and presents a bright picture. Other than it other sectors on height are oil & gas, telecom, metals & mining and information technology. Sectors performing average are automotive, cement & construction, chemicals, media & entertainment, manufacturing, miscellaneous, pharmaceuticals and utility. The sectors which are not so favourite are banking & financial services, conglomerates, consumer non- durables, food & beverages, services and tobacco.

And the sector which failed to attract the fund managers is consumer durables with just 51 funds betting on it.
Thus this analysis not only gives a picture of the mindset of fund managers rather it also reflects the liquidity existing in each of the sectors. It is not only useful for investors of mutual funds rather the investors of equity and debt too could take a hint from it. Asset allocation by fund managers are based on several researches carried on so, it is always advisable for other investors too take a look on it. It can be further presented in the form of a graph as follow:
350 300 250 Axis Title 200 150 100 50 0 conglomerates chemicals metals& mining services automotive
engineering & capital goods
food & beverages
oil & gas
media & entertainment
pharmaceuticals
banking & financial services
consumer non durables
cement & construction
information technology
FINANCE DEPARTMENT
consumer durables
manufacturing
miscellaneous
telecom
tobacco
utility
Page 51
For example: Case 1 R2 B 0.65 1.2 Case 2 0.88 0.9
In the above tableR2 is less than 0.80 in case 1, implies that it would be wrong to mention that the fund is aggressive on account of high beta. In case 2, the rsquared is more than 0.85 and beta value is 0.9. it means that this fund is less aggressive than the market. Sharpe ratio: sharpe ratio is a risk to reward ratio, which helps in comparing the returns given by a fund with the risk that the fund has taken. A fund with a higher sharpe ratio means that these returns have been generated taking lesser risk. In other words, the fund is less volatile and yet generating good returns. Thus, given similar returns, the fund with a higher sharpe ratio offers a better avenue for investing. The ratio is calculated as:
Sharpe ratio = (Average return- risk free rate) / standard deviation
Portfolio turnover ratio: Portfolio turnover is a measure of a fund's trading activity and is calculated by dividing the lesser of purchases or sales (excluding securities with maturities of less than one year) by the average monthly net assets of the fund. Turnover is simply a measure of the percentage of portfolio value that has been transacted, not an indication of the percentage of a fund's holdings that have been changed. Portfolio turnover is the purchase and sale of securities in a fund's portfolio. A ratio of 100%, then, means the fund has bought and sold all its positions within the last year. Turnover is important when investing in any mutual fund, since the amount of turnover affects the fees and costs within the mutual fund.
Total expenses ratio: A measure of the total costs associated with managing and operating an investment fund such as a mutual fund. These costs consist primarily of management fees and additional expenses such as trading fees, legal fees, auditor fees and other operational expenses. The total cost of the fund is divided by the fund's total assets to arrive at a percentage amount, which represents the TER: Total expense ratio = (Total fund Costs/ Total fund Assets)
FINANCE DEPARTMENT
Page 53
Performance report and portfolio analysis of magnum equity fund and magnum multiplier plus against their benchmark BSE100:
YTD Magnu m equity fund 23.73%
1M 9.02%
3M -7.71%
6M 15.18%
1Y
3Y
5Y
26.61% 45.07% 48.96%
Magnu m multipl ier plus Bench mark BSE10 0 17.53% 26.16%
5.57%
21.44% 45.28% 59.31%
11.26% 18.00%
11.74% -2.56%
11.47% 30.71% 40.46% 44.24%
Now in the above table, we have two funds from SBI ie; magnum equity fund and magnum multiplier plus following the same benchmark i.e; BSE 100. In this case, we have compared their returns during various time periods. We have their returns
FINANCE DEPARTMENT
Page 54

YTD, during last 1 month, 3month, 6 months, 1 year, 3 year and 5 year. If we look at a long term perspective, then magnum multiplier plus totally outperformed both magnum equity fund as well as bse 100. In case of 5 year returns, neither the benchmark nor the magnum equity fund stands anywhere near multiplier plus. It is greater than equity fund by 10.35% and from benchmark by 15.07%. but in case of 3 year returns, surely multiplier plus gave the maximum return but it fell sharply in comparison to its 5 yr return. A 45.28% return scored over equity fund just by a margin of 0.21% and benchmark by a mere 4.28%. now moving down to 1 yr return, we can clearly see that bse 100 emerges as a true winner. The benchmark gave a return of 30.71% but both the funds failed to match it even.
But the ultimate surprise comes when we look at the datas of last 6 months. Here not only the fund mangers failed to beat or match the market. Rather they also performed as laggards, giving negative returns. When the bse 100 gave returns of 11.47%, these funds were trailing by 29.47% and 26.65% which is a huge figure. In th last 3 months too, both the funds were behind bse100 but all the three gave negative returns and the difference between them and benchmark was narrowed down. Again, during last 1 month return of all three got positive but the funds always remained behind the benchmark. The bse 100 outscored multiplier plus and equity fund by 6.17% and 2.72% respectively. Similarly, the YTD return of all 3 is negative even then the benchmark is at a better position than the funds. From the following analysis we can infer that inspite of all the steps taken; it is not always possible for the fund managers to always beat the market. Also, the past performance just tells the background and history of the fund, by looking at it we cannot interpret that the fund will perform in the same way in the future too.
Quantitative data: Ratios Magnum equity fund Magnum plus Standard deviation Beta r-squared Sharpe ratio Portfolio turnover Total expense ratio 1.46% 31% 2.5% 26.00% 0.96% 26.90% 0.95% 0.84% 1.42% 25% 2.5% multiplier
Analysis: We can see that the standard deviation of both the funds are more or less same even then the S.D of multiplier plus is greater than that of equity fund by 0.90%. Generally higher the SD higher is the risk and vice-versa. Therefore, magnum multiplier plus is riskier than magnum equity fund. The beta of magnum equity fund is higher than that of magnum multiplier plus. Therefore, equity fund is more volatile than multiplier plus. But beta of both the funds is smaller than 1 that means both the funds are less volatile than the market index. As r- squared values are more than 0.80 in both the cases, we can rely on the usage of beta for the analysis of these funds. A look at the Sharpe ratio indicates that magnum equity has outperformed multiplier plus. A higher Sharpe ratio of equity fund depicts that these return have been generated taking lesser risk than the multiplier plus. It Is less volatile than the other.

R-squared of both the funds are greater than 0.80. it indicates that beta can be used as a reliable measure to analyze the performance of these funds. Magnum equity funds R- squared is higher. So its beta is more reliable. Portfolio turnover ratio of magnum equity fund is higher than multiplier plus. It mean the manager is frequently churning the portfolio of equity fund than of multiplier plus. It may lead to an increase in expenses but could be ignored if could generate higher return by changing the composition of portfolio. Total expense ratio of both the funds are same i.e.; 2.5%
OBJECTIVES OF THE STUDY

1. To find out the Preferences of the investment in mutual fund . 2. To know the Preferences for the portfolios. 3. To know why one has invested or not invested 4. To find out the most preferred channel. 5. To find out what should do to boost Mutual Fund Industry.
FINANCE DEPARTMENT
Page 57
SCOPE OF THE STUDY

A big boom has been witnessed in Mutual Fund Industry in recent times. A large number of new players have entered the market and trying to gain market share in this rapidly improving market. The research was carried on in Gurgaon and New Delhi. I had carried out the research work in the head office of Indiabulls where I completed my Project work. I surveyed on my Project Topic Project on Mutual Fund The study will help to know the preferences of the company, which company, portfolio, mode of investment, option for getting return and so on they prefer. This project report may help the company to make further planning and strategy.
FINANCE DEPARTMENT
Page 58
DATA
ANALYSIS & INTERPRETATION
(d). Income earned by IBFSL through various investments:. Investment Amount
Long term investments, nontrade, unquoted (at cost): -In equity shares of associate companies -In preference shares Current investments , non 386853698 2000000000
FINANCE DEPARTMENT
Page 59

trade ,unquoted -In units of mutual fund non 9041547963 trade -In pass through Certificatesnon trade -In Bonds non trade 204951518 50000000
Interpretation: Income earned by IBSFL , out of Rs.16350404283 Profit, mutual fund contribute by Dividend income on units of mutual funds and on equity is Rs.216525008 , therefore 1.4% total income is earned through mutual fund investment in the market through IN House analysis team which is low risk investment. Reason for investment in Mutual Fund Reason Liquidity Moderate Risk To maintain the Cash
FINANCE DEPARTMENT
No. of time 30 10 60
Page 60

balance
No. of time
30
Liquidity Moderate Risk
60
10
To maintain the Cash balance
Interpretation: Indiabulls have policy to invest some money in mutual fund because of the following reason some are as follows: Liquidity : Mutual fund investment have high degree of liquidity as compared to other investments if made. To maintain the cash balance : indiabulls have to maintain the cash balance as may be required as per daily basis. And excess is transferred for investment in mutual funds. Moderate Risk: Top performing mutual fund gives better returns then the bank interest rate . If invested wisely in mutual fund that gives good return as compared to moderate risk .
Out of 100 times invested in mutual funds, 30 times money invested in mutual fund for the basis of liquidity, 60 times to maintain the cash budget. Indiabulls invested in different Assets Management Co. (AMC) Name of AMC SBIMF UTI HDFC Reliance ICICI Prudential Kotak Others No. of units 550000 750000 300000 750000 560000 450000 700000
(Note: No. of units are approx and Name of AMC are on the basis of assumption, as company has policy not to disclose the data to outsiders)
FINANCE DEPARTMENT
Page 62
Others HDFC Name of AMC Kotak SBIMF ICICI Reliance UTI 0 20 40 No. of units figures in lakhs 60 3.0 4.5 5.5 5.6
7.0
7.5 7.5 80
Interpretation: In Indiabulls most of the time mutual funds they preferred UTI and Reliance Mutual Fund. UTI and Reliance Mutual fund is performing well in the market and having better return from others plans Preferred through Systematic Investment Plan. Preferred Portfolios Portfolio Equity Debt Balanced Percentage 30% 25% 45%
FINANCE DEPARTMENT
Page 63
Percentage
30% 45%
Equity Debt Balanced
25%
Interpretation: From the above graph 30% preferred Equity Portfolio, 45% preferred Balance and 25% preferred Debt portfolio Preference of Indiabulls whether to invest in Sectoral Funds Response Yes No No. of time 25 75
FINANCE DEPARTMENT
Page 64
25%
75%
Yes
No
Interpretation: Out of 100 times, 75% times indiabulls do not prefer to invest in Sectoral Fund because there is maximum risk and 25% prefer to invest in Sectoral Fund. Because it contains the industry specific risk and increases the overall investment risk. Generally indiabulls avoid for sectoral fund unless and until there is no proper conformation about the news for investment.
FINANCE DEPARTMENT
Page 65
FINDINGS AND CONCLUSION

FINDINGS
Indiabulls Financial Services ltd. is one of Indias leading companies and has strong brand recognition within India, which helps attract new, potential clients. The company has established a network of easily accessible branches across 160 locations throughout India, and the wide presence of these branches further enhance its brand recognition with prospective clients. IBFSL Continue to grow the client base and maintain a high quality loan portfolio.
Indiabulls Financial Services Ltd. mobilizes its Cash surplus by buying

or selling of mutual fund, NCD, commercial papers, OR through fund transfer, Intercompany deposits with its subsidiaries. Mutual Fund is good option for investment as the risk related to investment with the return is low.
CONCLUSION
Investing in mutual fund is good investing plan and good use of mobilization of resources as a risk associated with the investment is low and it is a good option to keep liquid asset like in mutual fund because at the time in demand of liquid cash liquid asset i.e. mutual

fund NCD can be sold and arrangement of fund can be done but to be successful in Mutual Fund requires complete understanding of the peculiarities of the Indian Stock Market that indiabulls in house department is doing before investing in mutual fund. This study has made an attempt to understand the financial behavior of Mutual Fund investors in connection with the preferences of Brand (AMC), Products, Channels etc. I observed that many of people have fear of Mutual Fund. They think their money will not be secure in Mutual Fund. They need the knowledge of Mutual Fund and its related terms. Many of people do not have invested in mutual fund due to lack of awareness although they have money to invest. As the awareness and income is growing the number of mutual fund investors are also growing. Brand plays important role for the investment. People invest in those Companies where they have faith or they are well known with them. There are many AMCs in India but only some are performing well due to Brand awareness. Some AMCs are not performing well although some of the schemes of them are giving good return because of not awareness about Brand. Reliance, UTI, SBIMF, ICICI Prudential etc. they are well known Brand, they are performing well and their Assets Under Management is larger than others whose Brand name are not well known like Principle, Sunderam, etc. Distribution channels are also important for the investment in mutual fund. Financial Advisors are the most preferred channel for the investment in mutual fund. They can change investors mind from one investment option to others. Many of investors directly invest their money through AMC because they do not have to pay

entry load. Only those people invest directly who know well about mutual fund and its operations and those have time. Now Indiabulls has also registered themselves as a mutual fund house which is a kind of diversify of business and it is a good indication for future growth .
SUGGESTIONS AND RECOMMENDATIONS

The most vital problem spotted is of ignorance. Investors should be made aware of the benefits. Nobody will invest until and unless he is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing. Mutual funds offer a lot of benefit which no other single option could offer. But most of the people are not even aware of what actually a mutual fund is? They only see it as just another investment option. So the advisors should try to change their mindsets. The advisors should target for more and more young investors. Young investors as well as persons at the height of their career would like to go for advisors due to lack of expertise and time. Mutual Fund Company needs to give the training of the Individual Financial Advisors about the Fund/Scheme and its objective, because they are the main source to influence the investors.
Before making any investment Financial Advisors should first enquire about the risk tolerance of the investors/customers, their need and time (how long they want to invest). By considering these three things they can take the customers into consideration. Younger people aged under 35 will be a key new customer group into the future, so making greater efforts with younger customers who show some interest in investing should pay off. Customers with graduate level education are easier to sell to and there is a large untapped market there. To succeed however, advisors must provide sound advice and high quality. Systematic Investment Plan (SIP) is one the innovative products launched by Assets Management companies very recently in the industry. SIP is easy for monthly salaried person as it provides the facility of do the investment in EMI. Though most of the prospects and potential investors are not aware about the SIP. There is a large scope for the companies to tap the salaried persons.
FINANCE DEPARTMENT
Page 69
BIBLIOGRAPHY
NEWS PAPERS OUTLOOK MONEY TELEVISION CHANNEL (CNBC AAWAJ) MUTUAL FUND HAND BOOK FACT SHEET AND STATEMENT WWW.MONEYCONTROL.COM WWW.AMFIINDIA.COM WWW.ONLINERESEARCHONLINE.COM WWW. MUTUALFUNDSINDIA.COM
FINANCE DEPARTMENT
Page 70

Final

Transféré par

Informations du document

Description originale:

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Final

Transféré par

Droits d'auteur :

Formats disponibles

Project on Mutual fund A PROJECT REPORT ON PROJECT ON MUTUAL FUND

OF INDIABULLS FINANCIAL SERVICES LTD.

Submitted in partial fulfillment for MASTER OF BUSINESS ADMIMISTRATION

Under Guidance :CA Kuldeep Mittal Divisional manager(indiabulls)

Project on Mutual fund

Project on Mutual fund

Name of Project Guide CA Kuldeep Mittal

Project on Mutual fund

DATE: Enrollment no.: D1012FWISBE-A10036-(NOI-2-NA-2044)

PRATEEK ARORA MBA (Two Years)

Project on Mutual fund

Project on Mutual fund

Project on Mutual fund

Project on Mutual fund

Project on Mutual fund

Project on Mutual fund

Sameer Gehlaut, Chairman, CEO & Whole Time Director

Rajiv Rattan, President, CFO & Whole Time Director:

Project on Mutual fund

Project on Mutual fund

1.2 Main Objects of the Company

4. To conduct depository participant services; to conduct de-materialization and rematerialization of shares

Project on Mutual fund

Project on Mutual fund

GEOGRAPHICAL DISTRIBUTION OF BRANCHES

Project on Mutual fund

2.1 Business Update:

Project on Mutual fund

5.00% 6.00% 14.00%

2.3 Asset composition :

Project on Mutual fund

2.4 Improving Liability Profile:

Project on Mutual fund

Project on Mutual fund

2.6 Headroom for growth :

Project on Mutual fund

2.7 Income Sources :

87.00% INTERST INCOME FEE INCOME

Project on Mutual fund

2.8 Improving Cost-Income Ratio

Q1 FY 09-10 Q2 FY 09-10 Q3 FY 09-10 Q4 FY 09-10 Q1 FY 10-11

2.9 Stable Asset Quality :

Project on Mutual fund

Project on Mutual fund

Project on Mutual fund

Project on Mutual fund

Project on Mutual fund

Project on Mutual fund

The major players in the Indian Mutual Fund Industry are:

Rank Scheme Name

Date NAV (Rs.)

HDFC Capital Builder 13 Fund - Growth Apr 2011

Exchange 13 Apr 2011

Tata Balanced Fund - 13 Growth Apr 2011

Tata Equity P/E Fund - 13 Growth

Sahara Liquid Fund - Fixed Pricing Option - Growth

Advantage Fund - Regular Growth FINANCE DEPARTMENT

Project on Mutual fund

Project on Mutual fund

Project on Mutual fund

Project on Mutual fund

Project on Mutual fund

Project on Mutual fund