INTRODUCTION

MUTUAL FUND
1

Mutual fund is a mechanism for pooling the resources by issuing units to the investors
and investing funds in securities in accordance with objectives as disclosed in offer
document.
Investments in securities are spread across a wide cross-section of industries and sectors
and thus the risk is reduced. Diversification reduces the risk because all stocks may not
move in the same direction in the same proportion at the same time. Mutual fund issues
units to the investors in accordance with quantum of money invested by them. Investors of
Mutual unds are known as unit holders.
!he profits or losses are shared by the investors in proportion to their investments. !he
Mutual unds normally come out with a number of schemes with different investment
objectives which are launched from time to time. " mutual fund is required to be registered
with #ecurities and $%change &oard of India '#$&I( which regulates securities markets
before it can collect funds from the public.
" mutual fund is set up in the form of a trust) which has sponsor) trustees) asset
Management *ompany '"M*( and custodian. !he trust is established by a sponsor or more
than one sponsor who is like promoter of a company. !he trustees of the mutual fund hold
its property for the benefit of the unit holders. "sset Management *ompany '"M*(
approved by #$&I manages the funds by making investments in various types of securities.
*ustodian) who is registered with #$&I) holds the securities of various schemes of the fund
in its custody. !he trustees are vested with the general power of superintendence and
direction over "M*. !hey monitor the performance and compliance of #$&I +egulations
by the mutual fund.
#$&I +egulations require that at least two thirds of the directors of trustee company or
board of trustees must be independent i.e. they should not be associated with the sponsors.
,

"lso) -./ of the directors of "M* must be independent. "ll Mutual unds are required to
be registered with #$&I before they launch any scheme.
OBJECTIVES OF THE STUDY:
0

!o understand what Mutual fund companies are.
!o understand Mutual fund companies vi1. 2!I) #&I) 3D*) I*I*I) 3#&* 4 I56
78#8" &"59.
!o understand each company performance basing on weekly wise data starting from
Monday.
!o understand the investment strategies followed by each company.
!o analy1e by comparing the input-output of each company with others.
!o identify suitable company for investment.
!o study which &anking sector is performing well i.e.) 5ationali1ed or *orporate
&anking sector.
RESEARCH METHODOLOGY:
!he data that is used in this project is of secondary nature. !he data has been collected
from secondary sources such has various websites) journals) newspapers) books) etc.) the
analysis used in this project has been done using selective technical tools. In Mutual unds
risk is analy1ed and trading decisions are taken on basis of technical analysis.
#ample si1e of the banking sector: ,.
#ample si1e of the banks in each sector: 0
METHOD OLOGY
;

!he data taken for the , sectors is 0 months data i.e.) 1
st
Dec ,.1, < ,=
th
eb ,.10.!he
data for study purpose is taken on weekly basis .!he data taken into consideration is every
Monday.

NATIONALISED BANKS : #&I ) 2!I ) I56 78#8"
CORPORATE BANKS : 3D* ) 3#&* ) I*I*I
PURPOSE OF THE STUDY:
!he study basically made to educate in investors about Mutual unds. "naly1e the
various schemes to highlight the risk and return of diversity of investment that Mutual
unds offer. !hus) through the study one would understand how a common man could
fruitfully convert a pittance into great penny by wisely investing into the right scheme
according to his risk taking abilities.
SCOPE OF THE STUDY:
!he study is limited to the analysis made on , major types of schemes offered by si%
banks. $ach scheme is calculated their risk and return using different performance
measurement theories. !he reasons for such performance in immediately analy1ed in the
commentary. *olumn charts are used to reflect the portfolio risk and return.
-

LIMITATIONS OF THE STUDY:
!he study is conducted in short period) due to which the study may not be
detailed in all aspects.
!he study is limited only to the analysis of different schemes and its suitability
to different investors according to their risk-taking ability.
!he study is based on secondary data available from monthly fact sheets) web
sites) offer documents) maga1ines and newspapers etc. as primary data was not
accessible.
!he study is limited by the detailed study of various schemes.
>

Review Of Literature
History

?

2nit !rust of India was the first mutual fund set up in India in the year 1@>0. In early
1@@.s) 6overnment allowed Aublic sector banks and Institutions to set up Mutual unds.
In the year 1@@,) #ecurities and e%change &oard of India '#$&I( "ct was passed. !he
objectives of #$&I are to protect the interest of investors in securities and to promote the
development of and to regulate the securities market.
"s far as Mutual unds are concerned) #$&I formulates policies and regulates the Mutual
unds to protect the interest of the investors. #$&I notified regulations for the Mutual
unds in 1@@0. !hereafter) Mutual unds sponsored by private sector entities were allowed
to enter the capital market. !he regulations were fully revised in 1@@> and have been
amended thereafter from time to time. #$&I has also issued guidelines to the Mutual unds
from time to time to protect the interests of investors.
"ll Mutual unds whether promoted by public sector or private sector entities including
those promoted by foreign entities are governed by the same set of +egulations. !here is no
distinction in regulatory requirements for these Mutual unds and all are subject to
monitoring and inspections by #$&I. !he risks associated with the schemes launched by
the Mutual unds sponsored by these entities are of similar type
8ou can make money from a Mutual und in three ways:
1( Income is earned from dividends on stocks and interest on bonds.
,( If the fund sells securities that have increased in price) the fund has a capital gain.
0( If fund holdings increase in price but are not sold by the fund manager) the fundBs
shares increase in price. 8ou can then sell your mutual fund shares for a profit.
Ad!"t!#$s o% M&t&!' F&"ds :
=

C Pro%$ssio"!' M!"!#$($"t - !he primary advantage of funds is the professional
management of your money. Investors purchase funds because they do not have the time or
the e%pertise to manage their own portfolios. " mutual fund is a relatively ine%pensive way
for a small investor to get a full-time manager to make and monitor investments.
C Di$rsi%i)!tio" - &y owning shares in a mutual fund instead of owning individual
stocks or bonds) your risk is spread out. !he idea behind diversification is to invest in a
large number of assets so that a loss in any particular investment is minimi1ed by gains in
others.
* E)o"o(i$s o% S)!'$ - &ecause a mutual fund buys and sells large amounts of
securities at a time) its transaction costs are lower than what an individual would pay for
securities transactions.
* Li+&idity - Dust like an individual stock) a mutual fund allows you to request
that your shares be converted into cash at any time.
C Si(,'i)ity < Minimum investment is small.
Dis!d!"t!#$s:
@

C Di'&tio" - ItBs possible to have too much diversification. &ecause funds have small
holdings in so many different companies) high returns from a few investments often donBt
make much difference on the overall return.
C T!-$s - Ehen making decisions about your money) fund managers donBt consider your
personal ta% situation.

Di%%$r$"t Ty,$s O% F&"ds
ItBs important to understand that each mutual fund has different risks and rewards. In
general) the higher the potential return) the higher the risk of loss. "lthough some funds are
less risky than others) all funds have some level of risk - itBs never possible to diversify
away all risk.
$ach fund has a predetermined investment objective that tailors the fundBs assets) regions of
investments and investment strategies. "t the fundamental level) there are three varieties of
Mutual unds:
1( $quity funds 'stocks(
,( i%ed-income funds 'bonds(
0( Money market funds
Mo"$y M!r.$t F&"ds
!he money market consists of short-term debt instruments) mostly !reasury bills.
Bo"d/I")o($ F&"ds

1.

Income funds are named appropriately: their purpose is to provide current income on a
steady basis. Ehen referring to Mutual unds) the terms Ffi%ed-income)F Fbond)F and
FincomeF are synonymous.
&ond funds are likely to pay higher returns than certificates of deposit and money
market investments) but bond funds arenBt without risk.
B!'!")$d F&"ds
!he objective of these funds is to provide a balanced mi%ture of safety) income and
capital appreciation. !he strategy of balanced funds is to invest in a combination of fi%ed
income and equities. " typical balanced fund might have a weighting of >./ equity and
;./ fi%ed income. !he weighting might also be restricted to a specified ma%imum or
minimum for each asset class.
" similar type of fund is known as an asset allocation fund. Gbjectives are similar to
those of a balanced fund) but these kinds of funds typically do not have to hold a specified
percentage of any asset class.
E+&ity F&"ds
unds that invest in stocks represent the largest category of Mutual unds. 6enerally)
the investment objective of this class of funds is long-term capital growth with some
income. !here are) however) many different types of equity funds because there are many
different types of equities. " way to understand the universe of equity funds is to use a style
bo%) an e%ample of which is below.
11


!he idea is to classify funds based on both the si1e of the companies invested in and the
investment style of the manager.
G'o0!'/I"t$r"!tio"!' F&"ds
"n international fund 'or foreign fund( invests only outside your home country. 6lobal
funds invest anywhere around the world) including your home country.
I"d$- F&"ds
!he last but certainly not the least important are inde% funds. "n investor in an inde%
fund figures that most managers canBt beat the market. "n inde% fund merely replicates the
market return and benefits investors in the form of low fees.
T1$ V!'&$ o% Yo&r F&"d
5et asset value '5"7() which is a fundBs assets minus liabilities) is the value of a mutual
fund. 5"7 per share is the value of one share in the mutual fund) and it is the number that
is quoted in newspapers.
Ehen you buy shares) you pay the current 5"7 per share plus any sales front-end load.
Ehen you sell your shares) the fund will pay you 5"7 less any back-end load.
!here are many entities involved and the diagram below illustrates the organi1ational set up
of a mutual fund:
1,

Organization of a Mutual Fund
CONCEPT
" Mutual und is a trust that pools the savings of a number of investors who share a
common financial goal. !he money thus collected is then invested in capital market
instruments such as shares) debentures and other securities. !he income earned through
these investments and the capital appreciation reali1ed are shared by its unit holders in
proportion to the number of units owned by them. !hus a Mutual und 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.
!he flow chart below describes broadly the working of a mutual fund:
10

Mutual fund schemes may be classified on the basis of its structure and its investment
objective.
By Str&)t&r$:
O,$"2$"d$d %&"ds
"n open ended fund is one that is available for subscription all through the year.
!hese do not have a fi%ed maturity. Investors can conveniently buy and sell units at 5et
"sset 7alue 'H5"7I( related prices. !he key feature of open-end schemes is liquidity.
C'os$d2$"d$d %&"d s
" closed end fund has a stipulated maturity period which generally ranging from 0 to
1- years. !he fund is open for subscription only during a specific period. Investors can
invest in the scheme at the time of the initial public issue and thereafter they can buy or sell
the units of the scheme on the stock e%changes where they are listed.

1;

I"t$r!' %&"ds
!hese combine the features of open-ended and closed-ended schemes. !hey are
open for sale or redemption during pre-determined intervals at 5"7 related prices.
By I"$st($"t O03$)ti$:
Gro4t1 %&"ds
!he aim of growth funds is to provide capital appreciation over the medium to long-
term. #uch schemes normally invest the majority of their corpus in equities. It has been
proven that returns from stocks) have outperformed most other kind of investments held
over the long term. 6rowth schemes are ideal for investors having a long-term outlook
seeking growth over a period of time.
I")o($ %&"ds
!he aim of income funds is to provide regular and steady income to investors. #uch
schemes generally invest in fi%ed income securities such as bonds) corporate debentures
and government securities. Income funds are ideal for capital stability and regular income.
B!'!")$d %&"ds
!he aim of balanced funds is to provide both growth and regular income. #uch
schemes periodically distribute a part of their earning and investment both in equities and
fi%ed income securities in the proportion indicated in their offer documents. In a rising
stock market) the 5"7 of these schemes may not normally keep pace) or fall equally when
the market falls. !hese are ideal for investors looking for a combination of income and
moderate growth.

1-

Mo"$y (!r.$t %&"ds
or over 0. years) money market funds have treated investors well. Money market
funds have been around for 0. years and are a very popular place for investors to park their
money.
Money market funds are a type of mutual fund that invests in short-term 'less than a
year( debt securities of agencies of the 2.#. 6overnment) banks and corporations and 2.#.
!reasury &ills. !hey are fi%ed at J1 per share and only the yield fluctuates.
Lo!d F&"ds
" load fund is one that charges a commission for entry of e%it. !hat is) each time you
buy or sell units in the fund) a commission will be payable. !ypically entry e%it loads range
from 1/ to ,/. It could be corpus is put to work.
No2Lo!d F&"ds
" 5o-Koad fund is one that does not charge a commission for entry or e%it. !hat is)
no commission is payable on purchase or sale of units in the fund. !he advantage of a 5o-
Koad fund is that the entire corpus is put to work.
Ot1$r S)1$($s:
T!- s!i"# S)1$($s:
!hese schemes offer ta% rebates to the investor under specific provisions of the Indian
income ta% laws as the 6overnment offers ta% incentives for investment in $quity Kinked
#aving #cheme '$K##( and Aension #chemes are allowed as deduction uLs == of the
Income !a% "ct. !he "ct also provide opportunities to investors to save capital gains uLs
-;$" and -;$& by investing in Mutual unds) provided the capital asset has been sold to
"pril 1),... and the amount is invested before #eptember 0.),....

1>

S,$)i!' S)1$($s :
I"d&stry S,$)i%i) S)1$($s
Industry #pecific #chemes invest in the industries specified in the offer document.
!he investment of these funds is limited to specific like Info !ech) M*6) and
Aharmaceuticals etc.
I"d$- S)1$($s:
Inde% unds attempt to replicate the performance of a particular inde% such as the
&#$ #ense% or the 5#$.
S$)tor!' S)1$($s :
#ectoral funds are those) which invest e%clusively in a specified industry or a group
of industries or various segments such as M"N 6roup shares or initial public offerings
1?

INDUSTRY PROFILE
FINANCIAL MARKETS
inance is the pre-requisite for modern business and financial institutions play a vital role
in the economic system. It is through financial markets and institutions that the financial
1=

system of an economy works. inancial markets refer to the institutional arrangements for
dealing in financial assets and credit instruments of different types such as currency)
cheques) bank deposits) bills) bonds) equities) etc.
inancial market is a broad term describing any marketplace where buyers and sellers
participate in the trade of assets such as equities) bonds) currencies and derivatives. !hey
are typically defined by having transparent pricing) basic regulations on trading) costs and
fees and market forces determining the prices of securities that trade.
6enerally) there is no specific place or location to indicate a financial market. Eherever a
financial transaction takes place) it is deemed to have taken place in the financial market.
3ence financial markets are pervasive in nature since financial transactions are themselves
very pervasive throughout the economic system. or instance) issue of equity shares)
granting of loan by term lending institutions) deposit of money into a bank) purchase of
debentures) sale of shares and so on.
In a nutshell) financial markets are the credit markets catering to the various needs of the
individuals) firms and institutions by facilitating buying and selling of financial assets)
claims and services.
CLASSIFICATION OF FINANCIAL MARKETS
1@

,.

C!,it!' M!r.$t
!he capital market is a market for financial assets which have a long or indefinite maturity.
6enerally) it deals with long term securities which have a period of above one year. In the
widest sense) it consists of a series of channels through which the savings of the
community are made available for industrial and commercial enterprises and public
authorities. "s a whole) capital market facilitates raising of capital.
!he major functions performed by a capital market are:
1. Mobili1ation of financial resources on a nation-wide scale.
,. #ecuring the foreign capital and know-how to fill up deficit in the required
resources for economic growth at a faster rate.
0. $ffective allocation of the mobili1ed financial resources) by directing the same to
projects yielding highest yield or to the projects needed to promote balanced
economic development.

*apital market consists of primary market and secondary market.
Primary market: Arimary market is a market for new issues or new financial claims. 3ence
it is also called as 5ew Issue Market. It basically deals with those securities which are
issued to the public for the first time. !he market) therefore) makes available a new block
of securities for public subscription. In other words) it deals with raising of fresh capital by
companies either for cash or for consideration other than cash. !he best e%ample could be
Initial Aublic Gffering 'IAG( where a firm offers shares to the public for the first time.
,1

Secondary market: #econdary market is a market where e%isting securities are traded. In
other words) securities which have already passed through new issue market are traded in
this market. 6enerally) such securities are quoted in the stock e%change and it provides a
continuous and regular market for buying and selling of securities. !his market consists of
all stock e%changes recogni1ed by the government of India.
Mo"$y M!r.$t
Mo"$y (!r.$ts are the markets for short-term5 highly liquid debt securities. Money
market securities are generally very safe investments which return relatively low interest
rate that is most appropriate for temporary cash storage or short term time needs. It consists
of a number of sub-markets which collectively constitute the money market namely call
money market) commercial bills market) acceptance market) and !reasury bill market.
D$ri!ti$s M!r.$t
!he derivatives market is the financial market for derivatives) financial instruments like
futures contracts or options) which are derived from other forms of assets. " derivative is
a security whose price is dependent upon or derived from one or more underlying
assets. !he derivative itself is merely a contract between two or more parties. Its value is
determined by fluctuations in the underlying asset. !he most common underlying assets
include stocks) bonds) commodities) currencies) interest rates and market inde%es. !he
important financial derivatives are the following:
Forwards: orwards are the oldest of all the derivatives. " forward contract
refers to an agreement between two parties to e%change an agreed quantity of
an asset for cash at a certain date in future at a predetermined price specified
,,

in that agreement. !he promised asset may be currency) commodity)
instrument etc.
Futures: uture contract is very similar to a forward contract in all respects
e%cepting the fact that it is completely a standardi1ed one. It is nothing but a
standardi1ed forward contract which is legally enforceable and always traded
on an organi1ed e%change.
Options: " financial derivative that represents a contract sold by one party
'option writer( to another party 'option holder(. !he contract offers the buyer
the right) but not the obligation) to buy 'call( or sell 'put( a security or other
financial asset at an agreed-upon price 'the strike price( during a certain
period of time or on a specific date 'e%ercise date(. *all options give the
option to buy at certain price) so the buyer would want the stock to go up. Aut
options give the option to sell at a certain price) so the buyer would want the
stock to go down.
Swaps: It is yet another e%citing trading instrument. Infact) it is the
combination of forwards by two counterparties. It is arranged to reap the
benefits arising from the fluctuations in the market < either currency market
or interest rate market or any other market for that matter.
For$i#" E-)1!"#$ M!r.$t
,0

It is a market in which participants are able to buy) sell) e%change and speculate on
currencies. oreign e%change markets are made up of banks) commercial
companies) central banks) investment management firms) hedge funds) and retail
fore% brokers and investors. !he fore% market is considered to be the largest
financial market in the world. It is a worldwide decentrali1ed over-the-counter
financial market for the trading of currencies. &ecause the currency markets are
large and liquid) they are believed to be the most efficient financial markets. It is
important to reali1e that the foreign e%change market is not a single e%change) but is
constructed of a global network of computers that connects participants from all
parts of the world.
Co((oditi$s M!r.$t
It is a physical or virtual marketplace for buying) selling and trading raw or primary
products. or investorsB purposes there are currently about -. major commodity markets
worldwide that facilitate investment trade in nearly 1.. primary
commodities. *ommodities are split into two types: hard and soft commodities. 3ard
commodities are typically natural resources that must be mined or e%tracted 'gold) rubber)
oil) etc.() whereas soft commodities are agricultural products or livestock 'corn) wheat)
coffee) sugar) soybeans) pork) etc.(
INDIAN FINANCIAL MARKETS
,;

India inancial market is one of the oldest in the world and is considered to be the
fastest growing and best among all the markets of the emerging economies.
!he history of Indian capital markets dates back ,.. years toward the end of the
1=th century when India was under the rule of the $ast India *ompany. !he
development of the capital market in India concentrated around Mumbai
where no less than ,.. to ,-. securities brokers were active during the
second half of the 1@th century.
!he financial market in India today is more developed than many other sectors
because it was organi1ed long before with the securities e%changes of
Mumbai) "hmadabad and 9olkata were established as early as the 1@th
century.
&y the early 1@>.s the total number of securities e%changes in India rose to eight)
including Mumbai) "hmadabad and 9olkata apart from Madras) 9anpur)
Delhi) &angalore and Aune. !oday there are ,1 regional securities e%changes
in India in addition to the centrali1ed 5#$ '5ational #tock $%change( and
G!*$I 'Gver the *ounter $%change of India(.
3owever the stock markets in India remained stagnant due to stringent controls on the
market economy that allowed only a handful of monopolies to dominate their respective
sectors. !he corporate sector wasnBt allowed into many industry segments) which were
dominated by the state controlled public sector resulting in stagnation of the economy right
up to the early 1@@.s. !hereafter when the Indian economy began liberali1ing and the
,-

controls began to be dismantled or eased outO the securities markets witnessed a flurry of
IAGNs that were launched. !his resulted in many new companies across different industry
segments to come up with newer products and services.
" remarkable feature of the growth of the Indian economy in recent years has been the role
played by its securities markets in assisting and fuelling that growth with money rose
within the economy. !his was in marked contrast to the initial phase of growth in many of
the fast growing economies of $ast "sia that witnessed huge doses of DI 'oreign Direct
Investment( spurring growth in their initial days of market decontrol. During this phase in
India much of the organi1ed sector has been affected by high growth as the financial
markets played an all-inclusive role in sustaining financial resource mobili1ation. Many
A#2s 'Aublic #ector 2ndertakings( that decided to offload part of their equity were also
helped by the well-organi1ed securities market in India.
!he launch of the 5#$ '5ational #tock $%change( and the G!*$I 'Gver the *ounter
$%change of India( during the mid 1@@.s by the government of India was meant to usher in
an easier and more transparent form of trading in securities. !he 5#$ was conceived as the
market for trading in the securities of companies from the large-scale sector and the G!*$I
for those from the small-scale sector. Ehile the 5#$ has not just done well to grow and
evolve into the virtual backbone of capital markets in India the G!*$I struggled and is yet
to show any sign of growth and development. !he integration of I! into the capital market
infrastructure has been particularly smooth in India due to the countryNs world class I!
industry. !his has pushed up the operational efficiency of the Indian stock market to global
standards and as a result the country has been able to capitali1e on its high growth and
attract foreign capital like never before.
,>

!he regulating authority for capital markets in India is the #$&I '#ecurities and $%change
&oard of India(. #$&I came into prominence in the 1@@.s after the capital markets
e%perienced some turbulence. It had to take drastic measures to plug many loopholes that
were e%ploited by certain market forces to advance their vested interests. "fter this initial
phase of struggle #$&I has grown in strength as the regulator of IndiaNs capital markets and
as one of the countryNs most important institutions.
FINANCIAL MARKET REGULATIONS
+egulations are an absolute necessity in the face of the growing importance of capital
markets throughout the world. !he development of a market economy is dependent on the
development of the capital market. !he regulation of a capital market involves the
regulation of securitiesO these rules enable the capital market to function more efficiently
and impartially.
" well regulated market has the potential to encourage additional investors to partake) and
contribute in) furthering the development of the economy. !he chief capital market
regulatory authority is #ecurities and $%change &oard of India '#$&I(.
SEBI is the regulator for the securities market in India. It is the ape% body to
develop and regulate the stock market in India It was formed officially by the
6overnment of India in 1@@, with #$&I "ct 1@@, being passed by the Indian
Aarliament. *haired by * & &have) #$&I is headquartered in the popular business
district of &andra-9urla comple% in Mumbai) and has 5orthern) $astern) #outhern
,?

and Eestern regional offices in 5ew Delhi) 9olkata) *hennai and "hmedabad. In
place of 6overnment *ontrol) a statutory and autonomous regulatory board with
defined responsibilities) to cover both development 4 regulation of the market) and
independent powers has been set up.
T1$ 0!si) o03$)ti$s o% t1$ Bo!rd 4$r$ id$"ti%i$d !s:
to protect the interests of investors in securitiesO
to promote the development of #ecurities MarketO
to regulate the securities market and
or matters connected therewith or incidental thereto.
#ince its inception #$&I has been working targeting the securities and is attending to the
fulfillment of its objectives with commendable 1eal and de%terity. !he improvements in the
securities markets like capitali1ation requirements) margining) establishment of clearing
corporations etc. reduced the risk of credit and also reduced the market.
#$&I has introduced the comprehensive regulatory measures) prescribed registration
norms) the eligibility criteria) the code of obligations and the code of conduct for different
intermediaries like) bankers to issue) merchant bankers) brokers and sub-brokers) registrars)
portfolio managers) credit rating agencies) underwriters and others. It has framed bye-laws)
risk identification and risk management systems for *learing houses of stock e%changes)
surveillance system etc. which has made dealing in securities both safe and transparent to
the end investor.
,=

"nother significant event is the approval of trading in stock indices 'like #4A *5P 5ifty
4 #ense%( in ,.... " market Inde% is a convenient and effective product because of the
following reasons:
It acts as a barometer for market behaviorO
It is used to benchmark portfolio performanceO
It is used in derivative instruments like inde% futures and inde% optionsO
It can be used for passive fund management as in case of Inde% unds.
!wo broad approaches of #$&I is to integrate the securities market at the national level)
and also to diversify the trading products) so that there is an increase in number of traders
including banks) financial institutions) insurance companies) mutual funds) primary dealers
etc. to transact through the $%changes. In this conte%t the introduction of derivatives
trading through Indian #tock $%changes permitted by #$&I in ,... "D is a real landmark.
#$&I has enjoyed success as a regulator by pushing systemic reforms aggressively and
successively 'e.g. the quick movement towards making the markets electronic and
paperless rolling settlement on !Q, bases(. #$&I has been active in setting up the
regulations as required under law.
,@

STOCK E6CHANGES IN INDIA
#tock $%changes are an organi1ed marketplace) either corporation or mutual organi1ation)
where members of the organi1ation gather to trade company stocks or other securities. !he
members may act either as agents for their customers) or as principals for their own
accounts.
"s per the #ecurities *ontracts +egulation "ct) 1@-> a stock e%change is an association)
organi1ation or body of individuals whether incorporated or not) established for the purpose
of assisting) regulating and controlling business in buying) selling and dealing in securities.
#tock e%changes facilitate for the issue and redemption of securities and other financial
instruments including the payment of income and dividends. !he record keeping is central
but trade is linked to such physical place because modern markets are computeri1ed. !he
trade on an e%change is only by members and stock broker do have a seat on the e%change.
BOMBAY STOCK E6CHANGE
0.

" very common name for all traders in the stock market) &#$) stands for &ombay #tock
$%change. It is the oldest market not only in the country) but also in "sia. In the early days)
&#$ was known as F!he 5ative #hare 4 #tock &rokers "ssociation.F It was established in
the year 1=?- and became the first stock e%change in the country to be recogni1ed by the
government. In 1@->) &#$ obtained a permanent recognition from the 6overnment of India
under the #ecurities *ontracts '+egulation( "ct) 1@->.
In the past and even now) it plays a pivotal role in the development of the countryBs capital
market. !his is recogni1ed worldwide and its inde%) #$5#$P) is also tracked worldwide.
$arlier it was an "ssociation of Aersons '"GA() but now it is a demutualised and
corporatised entity incorporated under the provisions of the *ompanies "ct) 1@->) pursuant
to the &#$ '*orporatisation and Demutuali1ation( #cheme) ,..- notified by the #ecurities
and $%change &oard of India '#$&I(.
BSE Visio"
!he vision of the &ombay #tock $%change is to F$merge as the premier Indian stock
e%change by establishing global benchmarks.F
BSE M!"!#$($"t
&ombay #tock $%change is managed professionally by &oard of Directors. It comprises of
eminent professionals) representatives of !rading Members and the Managing Director. !he
&oard is an inclusive one and is shaped to benefit from the market intermediaries
participation.
!he &oard e%ercises complete control and formulates larger policy issues. !he day-to-day
operations of &#$ are managed by the Managing Director and its school of professional as
a management team.
01

BSE N$t4or.
!he $%change reaches physically to ;1? cities and towns in the country. !he framework of
it has been designed to safeguard market integrity and to operate with transparency. It
provides an efficient market for the trading in equity) debt instruments and derivatives. Its
online trading system) popularly known as &GK!) is a proprietary system and it is &# ??@@-
,-,.., certified. !he &GK! network was e%panded) nationwide) in 1@@?. !he surveillance
and clearing 4 settlement functions of the $%change are I#G @..1:,... certified.
BSE F!)ts
&#$ as a brand is synonymous with capital markets in India. !he &#$ #$5#$P is
the benchmark equity inde% that reflects the robustness of the economy and finance.
It was the <
irst in India to introduce $quity Derivatives
irst in India to launch a ree loat Inde%
irst in India to launch 2#J version of &#$ #ense%
irst in India to launch $%change $nabled Internet !rading Alatform
irst in India to obtain I#G certification for #urveillance) *learing 4 #ettlement
B&#$ Gn-Kine !rading #ystemN '&GK!( has been awarded the globally
recogni1ed the Information #ecurity Management #ystem standard
&#??@@-,:,..,.
irst to have an e%clusive facility for financial training
Moved from Gpen Gutcry to $lectronic !rading within just -. days
0,

BSE with its long history of capital market development is fully geared to
continue its contributions to further the growth of the securities markets of the
country, thus helping ndia increases its sphere of influence in international
financial markets!
00

NATIONAL STOCK E6CHANGE OF INDIA LIMITED
!he 5ational #tock $%change of India Kimited has genesis in the report of the 3igh
Aowered #tudy 6roup on $stablishment of 5ew #tock $%changes) which
recommended promotion of a 5ational #tock $%change by financial institutions
'INs( to provide access to investors from all across the country on an equal footing.
&ased on the recommendations) 5#$ was promoted by leading inancial
Institutions at the behest of the 6overnment of India and was incorporated in
5ovember 1@@, as a ta%-paying company unlike other stock $%change in the
country.
Gn its recognition as a stock e%change under the #ecurities *ontracts '+egulation(
"ct) 1@-> in "pril 1@@0) 5#$ commenced operations in the Eholesale Debt Market
'EDM( segment in Dune 1@@;. !he *apital Market '$quities( segment commenced
operations in 5ovember 1@@; and operations in Derivatives segment commenced in
Dune ,....
NSE GROUP
N!tio"!' S$)&riti$s C'$!ri"# Cor,or!tio" Ltd7 8NSCCL9
It is a wholly owned subsidiary) which was incorporated in "ugust 1@@- and commenced
clearing operations in "pril 1@@>. It was formed to build confidence in clearing and
0;

settlement of securities) to promote and maintain the short and consistent settlement cycles)
to provide a counter-party risk guarantee and to operate a tight risk containment system.
NSE7IT Ltd7
It is also a wholly owned subsidiary of 5#$ and is its I! arm. !his arm of the 5#$ is
uniquely positioned to provide products) services and solutions for the securities industry.
5#$.I! primarily focuses on in the area of trading) broker front-end and back-office)
clearing and settlement) web-based) insurance) etc. "long with this) it also provides
consultancy and implementation services in Data Earehousing) &usiness *ontinuity Alans)
#ite Maintenance and &ackups) #tratus Mainframe acility Management) +eal !ime
Market "nalysis 4 inancial 5ews.
I"di! I"d$- S$ri)$s : Prod&)ts Ltd7 8IISL9
It is a joint venture between 5#$ and *+I#IK Ktd. to provide a variety of indices and inde%
related services and products for the Indian *apital markets. It was set up in May 1@@=.
II#K has a consulting and licensing agreement with the #tandard and AoorBs '#4A() worldBs
leading provider of investible equity indices) for co-branding equity indices.
N!tio"!' S$)&riti$s D$,ository Ltd7 8NSDL9
5#$ joined hands with ID&I and 2!I to promote demateriali1ation of securities. !his step
was taken to solve problems related to trading in physical securities. It commenced
operations in 5ovember 1@@>.
NSE F!)ts
It uses satellite communication technology to energi1e participation from around
;.. cities in India.
5#$ can handle up to 1 million trades per day.
0-

It is one of the largest interactive 7#"! based stock e%changes in the world.
!he 5#$- network is the largest private wide area network in India and the first
e%tended *- &and 7#"! network in the world.
Aresently more than @... users are trading on the real time-online 5#$ application.
!oday) 5#$ is one of the largest e%changes in the world and still forging ahead. "t
5#$) we are constantly working towards creating a more transparent) vibrant and
innovative capital market.
OVER THE COUNTER E6CHANGE OF INDIA
G!*$I was incorporated in 1@@. as a section ,- company under the companies "ct 1@->
and is recogni1ed as a stock e%change under section ; of the securities *ontracts
+egulation "ct) 1@->. !he e%change was set up to aid enterprising promotes in raising
finance for new projects in a cost effective manner and to provide investors with a
transparent and efficient mode of trading Modeled along the lines of the 5"#D"R market
of 2#") G!*$I introduced many novel concepts to the Indian capital markets such as
screen-based nationwide trading) sponsorship of companies) market making and scrip less
trading. "s a measure of success of these efforts) the $%change today has 11- listings and
has assisted in providing capital for enterprises that have gone on to build successful brands
for themselves like 7IA "dvanta) #onora !iles 4 &rilliant mineral water) etc.
N$$d %or OTCEI:
0>

#tudies by 5"##*GM) software technology parks of India) the venture capitals funds and
the governmentNs I! tasks orce) as well as rising interest in I!) Aharmaceutical)
&iotechnology and Media shares have repeatedly emphasi1ed the need for a national stock
market for innovation and high growth companies.
Innovative companies are critical to developing economics like India) which is undergoing
a major technological revolution. Eith their abilities to generate employment opportunities
and contribute to the economy) it is essential that these companies not only e%pand e%isting
operations but also set up new units. !he key issue for these companies is raising timely)
cost effective and long term capital to sustain their operations and enhance growth. #uch
companies) particularly those that have been in operation for a short time) are unable to
raise funds through the traditional financing methods) because they have not yet been
evaluated by the financial world.
0?

COMPANY
PROFILE
"&G2! *GMA"58:
0=

9otak *ommodity #ervices Kimited '9*#K( is promoted by the 9otak family that has
decades of e%perience in commodity trading. 9*#K is a trading-cum-clearing member of
the leading national commodity e%changes - M*P) 5*D$P 4 "*$. It is also a member of
5*D$P #pot $%change.
9*#K is also associated with "ll India *ottonseed *rushers "ssociation) *otton
"ssociation of India and !he #olvent $%tractors "ssociation of India.
Gur offerings include *ommodities &roking #ervices) 3edging #olutions and "rbitrage
Desk to meet the requirements of all kinds of market participants.
Ee have a full-fledged research division involved in macro 4 commodity comple%
research and commodity specific research. !his is combined with a strong and well
networked sales force) which helps deliver current and up-to-date market information and
news.
Ee have an e%tensive network spread across the country through our branches and
registered franchisees.
!he *ommodities &roking #ervices cater to the retail private investor segment) while the
3edging #ervices are offered through our corporate desk to the producingLconsuming firms
that have either direct or economic e%posure to the underlying commodity. Gur offerings
also include "rbitrage products that are backed by our e%perts.
Ee at 9*#K have a strong top management team that has a multi-decade e%perience in the
commodity and financial services industry) leading the company with a vision and
willingness to take it to the ne%t big level.
0@

"bout 6roup *ompany:
Kot!. M!1i"dr! B!".
Ty,$ Aublic
Tr!d$d !s
&#$: -..,;?
5#$: 9G!"9&"59
I"d&stry inancial service
Fo&"d$d 1@=- 'as 9otak Mahindra inance Ktd(
H$!d+&!rt$rs Mumbai) India
K$y ,$o,'$ 2day 9otak '7ice *hairman( 4 'MD(
Prod&)ts
Deposit accounts) Koans) Investment services) &usiness banking
solutions) !reasury and i%ed income products etc.
R$$"&$ 1.)@>0 crore '2#J1.@= billion(',.11(
S1T
N$t i")o($ 1)->@ crore '2#J,=0.@@ million(',.11(
;$0sit$ www.kotak.com
Kot!. M!1i"dr! B!". '&#$: -..,;?) 5#$: 9G!"9&"59( is an Indian financial
service firm established in 1@=-. It was previously known as 9otak Mahindra inance
Kimited) a non-banking financial company. In ebruary ,..0) 9otak Mahindra inance
Ktd) the groupBs flagship company was given the license to carry on banking business by
the +eserve &ank of India '+&I(. 9otak Mahindra inance Ktd. is the first company in the
Indian banking history to convert to a bank. !oday it has more than ,.)... employees and
+s. 1.)... crore in revenue.
S,T
Mr. 2day 9otak is $%ecutive 7ice *hairman 4 Managing Director of 9otak Mahindra
&ank Ktd. In Duly ,.11 Mr. *. Dayaram and Mr. Dipak 6upta) whole time directors of the
;.

&ank) were appointed the Doint Managing Directors of 9otak Mahindra &ank. Dr. #hankar
"charya is the chairman of board of Directors in the company. !he &ank has its registered
office at 5ariman &havan) 5ariman Aoint) Mumbai.
History
It bought stressed assets from a number of banks) at full loan value of +s 1)... crore in
,..-.
S0T
In Danuary ,.11) the bank reported a 0,/ rise in net profit to +s1== crore for the
quarter ended December ,.1. against +s. 1;, crore the corresponding quarter last year.
S;T
9otak Mahindra bank also reached the top 1.. most trusted brands of India in !he &rand
!rust +eport published by !rust +esearch "dvisory in ,.11.
!he group speciali1es in offering top class financial services catering to every segment
of the industry. !he various group companies include.
9otak Mahindra *apital Kimited
9otak Mahindra #ecurities Kimited
9otak Mahindra Inc
9otak Mahindra 'International( Kimited
6lobal Investments Gpportunities und Kimited
9otak Mahindra'29( Kimited 9otak #ecurities Kimited
9otak Mahindra Gld Mutual Kife Insurance *ompany Kimited
9otak Mahindra "sset Management *ompany Kimited
9otak Mahindra !rustee *ompany Kimited
9otak Mahindra Investments Kimited
9otak ore% &rokerage Kimited
9otak Mahindra Arivate-$quity !rustee Kimited
;1

Gro&, Str&)t&r$




;,
9otak
Mahindra &ank
9otak
Mahindra
*apital
*ompany
9otak
#ecurities
9otak
Mahindra
Investments
9otak
Mahindra
Arime
9otak
Mahindra
"sset
Management
*ompany
9otak
Mahindra
!rust
*ompany
9otak Mahindra
#ecurities
9otak Mahindra
' International(
9otak Mahindra Inc.
9otak Mahindra '29(
6lobal Investment
Gpportunities und

YEAR MILESTONE
1@=> 9otak Mahindra inance Kimited starts the activity of &ill Discounting
1@=? 9otak Mahindra inance Kimited enters the Kease and 3ire Aurchase market
1@@. !he "uto inance division is started
1@@1
!he Investment &anking Division is started. !akes over I*GM) one of IndiaBs
largest financial retail marketing networks
1@@, $nters the unds #yndication sector
1@@-
&rokerage and Distribution businesses incorporated into a separate company -
9otak #ecurities. Investment &anking division incorporated into a separate
company - 9otak Mahindra *apital *ompany
1@@>
!he "uto inance &usiness is hived off into a separate company -9otak Mahindra
Arime Kimited 'formerly known as 9otak Mahindra Arimus Kimited(. 9otak
Mahindra takes a significant stake in ord *redit 9otak Mahindra Kimited) for
financing ord vehicles. !he launch of Matri% Information #ervices Kimited
marks the 6roupBs entry into information distribution.
1@@=
$nters the mutual fund market with the launch of 9otak Mahindra "sset
Management *ompany.
,... 9otak Mahindra ties up with Gld Mutual plc. for the Kife Insurance business.
,...
9otak #ecurities launches its on-line broking site 'now
www.kotaksecurities.com(. *ommencement of private equity activity through
setting up of 9otak Mahindra 7enture *apital und.
,..1 Matri% sold to riday *orporation
,..1 Kaunches Insurance #ervices
,..0
9otak Mahindra inance Ktd. converts to a commercial bank - the first Indian
company to do so.
,..; Kaunches India 6rowth und) a private equity fund.
,..-
9otak 6roup realigns joint venture in ord *reditO &uys 9otak Mahindra Arime
'formerly known as 9otak Mahindra Arimus Kimited( and sells ord credit
Mahindra.
,..- Kaunches a real estate fund
,..>
&ought the ,-/ stake held by 6oldman #achs in 9otak Mahindra *apital
*ompany and #ecurities
,..= Kaunched a Aension und under the 5ew Aension #ystem
,..@ 9otak Mahindra &ank Ktd. Gpened a representative office in Dubai
;0

$ntered "hmedabad *ommodity $%change as anchor investor
,.1.
"hmedabad Derivatives and *ommodities $%change) a 9otak anchored
enterprise) became operational as a national commodity e%change.
,.11
9otak Mahindra &ank Ktd entered into a &usiness *ooperation arrangement with
*IM& 6roup #dn &hd) Malaysia.
A4!rds
+ecent achievements
"t 9otak Mahindra 6roup we take a client-centric view and constantly innovate to provide
you with the best of services and infrastructure. Ee have regularly received accolades that
stand testimony to our success in this endeavour. #ome of our recent achievements are:
BANKING
ICAI A4!rd
$%cellence in inancial +eporting under *ategory 1 - &anking #ector for the year
ending 01st March) ,.1.
Asi!(o"$y
&est Kocal *ash Management &ank ,.1.
IDG I"di!
9otak won the *IG 1.. B!he "gile 1..B award ,.1.
IDRBT
&anking !echnology $%cellence "wards &est &ank "ward in I! ramework and
6overnance "mong Gther &anksB - ,..@
&anking !echnology "ward for I! 6overnance and 7alue Delivery) ,..=
IR G'o0!' R!".i"#s
&est *orporate 6overnance Aractices - +anked among the top - companies in "sia
Aacific) ,..@
Fi"!")$Asi!
&est Arivate &ank in India) for Eealth Management business) ,..@
;;

Kot!. Roy!' Si#"!t&r$ Cr$dit C!rd
Eas chosen FAroduct of the 8earF in a survey conducted by 5ielsen in ,..@
IBA B!".i"# T$)1"o'o#y A4!rds
&est *ustomer +elationship "chievement - Einner ,..= 4 ,..@
&est overall winner) ,..?
&est I! !eam of the 8ear) ; years in a row from ,..> to ,..@
&est I! #ecurity Aolicies 4 Aractices) ,..?
E&ro(o"$y
&est Arivate &anking #ervices 'overall() ,..@
E($rso" U,ti($ C1!(,io" A4!rds
!echnology #enate $merson 2ptime *hampionship "ward in the &#I category)
,..=
;EALTH MANAGEMENT
Fi"!")$Asi!
&est Arivate &ank India - inance"sia ,.1.
MISCELLANEOUS
B$st Lo)!' Tr!d$ B!". i" I"di!
!he 29 based !rade 4 orfaiting +eview awarded 9otak Mahindra &ank Ktd. the
&ron1e "ward in the category of &est Kocal !rade &ank in India at the !+ "wards
,.11.
LACP Visio" A4!rds <=>= %or A""&!' R$,ort <=>=2>>
Alatinum "ward - &est among &anking *ategory) "A"*
6old "ward - Most *reative +eport) "A"*
+anked 5o. ,1 among !op -. +eports) "A"*
+anked 5o. =? among the EorldBs !op 1.. "nnual +eports
B&si"$ss4or'd
BMost 7aluable *$GB overall) ,.1. awarded to Mr. 2day 9otak) $%ecutive 7ice
*hairman 4 Managing Director
;-

CNBCTV >?
B&est Aerforming *G in the &ankingLinancial #ervices sector by *5&*!7 1=
*G "wards ,.1. awarded to Mr. Daimin &hatt
GIREM
6I+$M awarded 9otak +ealty unds 6roup) the FInvestor of the 8earF "ward for
,..@
IBA B!".i"# T$)1"o'o#y A4!rds
&est 2se of &usiness Intelligence - up) ,..=
&est $nterprise +isk Management - +unner up) ,..=
T1$ Gr$!t P'!)$s to ;or. I"stit&t$5 I"di!
&est Eorkplaces in India) ,..=
H$4itt
1.th &est $mployer in India) ,..?) ,..= 4 ,..@
Fi"!")i!' I"si#1ts I""o!tio" A4!rd
&est Innovation in $nterprise #ecurity Management in the "sia Aacific +egion)
,..@
Frost : S&''i!"
&est Aassenger 7ehicle inance *ompany in India) ,..>
CNBC TV >?
Indian &usiness Keader of the 8ear) ,..= awarded to 2day 9otak) $%ecutive 7ice
*hairman 4 Managing Director
INTERNATIONAL ASSET MANAGEMENT
G'o0!' I"$stor 8Editori!' A4!rd9
"sian "sset Manager of the 8ear) ,..@
ASSET MANAGEMENT
ICRA M&t&!' F&"d A4!rds <==@
9otak Kiquid '+egular Alan( - +anked as a #even #tar und for its 1 year
performance
9otak le%i Debt und - +anked as a ive #tar und for its 1 year performance
;>

9otak le%i Debt und - +anked as a ive #tar und for its 0 year performance
9otak 0. - +anked as a ive #tar und for its 0 year performance
INVESTMENT BANKING
Fi"!")$Asi!
&est Investment &ank in India) ,.1.
&est $quity 3ouse in India) ,.1.
&est &roker in India) ,.1.
Asi!(o"$y
&est Domestic $quity 3ouse) ,.1.
&est Kocal &rokerage in the "siamoney &rokers Aoll < ,.1.
G'o0!' Fi"!")$
&est Investment &ank in India) ,.1.
E&ro(o"$y R$!' Est!t$ Po''
&est &ank for $quity inance in India) ,.1.
Ass$t Asi!" A4!rds
&est Domestic Investment &ank) ,.1.
Fi"!")$Asi! Co&"try A4!rds %or A)1i$$($"t
&est Investment &ank in India) ,..>) ,..?) ,..=) ,..@ 4 ,.1.
&est $quity 3ouse in India) ,..= 4 ,.1.
Asi!(o"$y B$st Do($sti) B!". A4!rds
&est Domestic $quity 3ouse) ,..=) ,..@ 4 ,.1.
IFR Asi!
India $quity 3ouse of the 8ear) ,..=
G'o0!' Fi"!")$
&est Investment &ank in India) ,..=) ,..@ 4 ,.1.
Ass$t Asi!" A4!rds
&est Domestic Investment &ank) ,..>) ,..?) ,..= 4 ,..@
SECURITIES
Fi"!")$Asi!
&est &roker in India - ,.1.
;?

CNBC Fi"!")i!' Adisor A4!rds
&est Aerforming $quity &roker) ,..= 4 ,..@
Asi!(o"$y Bro.$rs Po''
&est Kocal &rokerage) ,..>) ,..?) ,..= 4 ,..@
&est "nalyst in India < #anjeev Arasad) ,..-) ,..>) ,..?) ,..= 4 ,..@
Fi"!")$Asi! Co&"try A4!rds %or A)1i$$($"t
&est &roker in India) ,..>) ,..@ 4 ,.1.
T1o(so" E-t$' S&r$ys A4!rds
IndiaBs Keading $quity 3ouse) ,..?
S&,$rBr!"ds Co&")i' o% I"di!
&usiness #uperbrand India) ,..=
;=

;@

ANALYSIS
STATE BANK OF INDIA
#tate &ank of India is the first &ank sponsored Mutual und to launch offshore fund) the
India Magnum und with a corpus of +s. ,,- cr. appro%imately. !oday it is the largest
&ank sponsored Mutual und in India. !hey have already launched 0- #chemes out of
which 1- have already yielded handsome returns to investors. #tate &ank of India Mutual
-.

und has more than +s. -)-.. *rores as "2M. 5ow it has an investor base of over = lakhs.
#pread over 1=schemes
SBI MAGNUM EAUITY FUND B Diid$"d : Gro4t1
5"7 3istory < 3istorical value for a period of
1-Dec-,.1, to ,=-eb-,.10
#&I M2!2"K 25D
Magnum $quity und < 6rowth 4 Dividend
D"!$ DI7ID$5D 6+GE!3
.?-Dec-,.1, 00.0@ 0?.=.
1;-Dec-,.1, 00.-0 0?.@>
,1-Dec-,.1, 00..> 0?.;0
,=-Dec-,.1, 0;..= 0=.-@
.;-Dan-,.10 ,@.;- 0@..;
11-Dan-,.10 ,@.>, 0@.,?
1=-Dan-,.10 ,@.?, 0@.;.
,--Dan-,.10 ,=.;, 0?.>?
1-eb-,.10 ,?.@@ 0?.11
=-eb-,.10 ,?.>0 0>.>,
1--eb-,.10 ,?.?- 0>.?=
,,-eb-,.10 ,?.?? 0>.=1
-1

!he above graph indicates that the $quity und - 6rowth and Dividend from the 1st week
of Dec is almost performing same but in ,nd week of Dan the performance of 6rowth has
drastically changed when compared to Dividends) and again the performance showed is
similar in rest of the weeks. &ecause of declaring Dividends frequently) the performance of
Dividend always shows less when compared with others.
ING VYSYA BANK
I56 7ysya &ank Ktd.) is an entity formed with the 7ysya &ank Ktd) a premier bank in the
Indian Arivate #ector and a global financial powerhouse) I56 'International 5ederland
-,

6roup( of Dutch origin) in the year ,..,.
!he origin of the 7ysya &ank dates back to 1@0.. #ince then the &ank has grown in si1e
and stature and has reached the coveted position of number one private sector bank in
India.
In 1@;=) the &ank acquired the status of #cheduled &ank. In 1@@,) its deposits crossed +s.
1... crores. !he very ne%t year) I56 7ysya crossed 0.. branches.
I56 7ysya &ankBs Deposit #cheme
!he following two types of deposits are offered by I56 7ysya &ank:
A))$ss P'&s
F$!t&r$s :
" single *urrent "ccount) with access from = cities in India
#eparate cheque books for each centre for easy reconciliation
Aooling of funds in the city of residence
" cost effective product
" perfect product for the trading community
*urrent "ccount
E'i#i0i'ity:
Individuals for single account
More than one individual for joint account
#ole proprietary concerns
Aartnership concerns
Arivate and Aublic Kimited companies
*lubs) associations) benevolent and friendly societies
*o-operative organi1ations
-0

#tatutory bodies) municipalities and such other Ruasi-6overnment Institutions
$%ecutors and "dministrators
5"7 3istory < 3istorical value for a period of
1-Dec-,.1, to ,=-Dan-,.10
I56 78#"
I56 &alanced und < 6rowth 4 Dividend
D"!$ DI7ID$5D 6+GE!3
.?-Dec-,.1, 1>..@ ,0...
1;-Dec-,.1, 1>.,- ,0.,0
,1-Dec-,.1, 1>..> ,,.@>
,=-Dec-,.1, 1>.;- ,0.-,
.;-Dan-,.10 1>.-, ,0.>,
11-Dan-,.10 1>.-= ,0.?1
1=-Dan-,.10 1>.-- ,0.?=
,--Dan-,.10 1>.11 ,0..0
1-eb-,.10 1-.@, ,,.?>
=-eb-,.10 1-.>= ,,.;0
1--eb-,.10 1-.?@ ,,.-?
,,-eb-,.10 1-.=- ,,.>>
ING VYSA EAUITY FUND B Diid$"d : Gro4t1
-;

!he above graph indicates that 6rowth is performing well when compared to Dividends.
rom the starting month 6rowth is high. !here are slight fluctuations in both 6rowth and
Dividend. &ecause of declaring Dividends frequently) the performance of Dividend always
shows less when compared with others. "s compared to #&I the performance showed is
better.
UNIT TRUST OF INDIA 8UTI9
--

2!I ) the first bank to begin operations as new private banks in 1@@; after the 6overnment
of India allowed new private banks to be established. 2!I &ank was jointly promoted by
the "dministrator of the specified undertaking of the 2nit !rust of India '2!I-I() Kife
Insurance *orporation of India 'KI*( and 6eneral Insurance *orporation Ktd. "lso with
associates vi1. 5ational Insurance *ompany Ktd.) !he 5ew India "ssurance *ompany) !he
Griental Insurance *orporation and 2nited Insurance *ompany Ktd.
2!I &ank in India today is capitali1ed with +s. ,0,.=> *rores with ;?.-./ public
holding other than promoters. It has more than ,.. branch offices and $%tension *ounters
in the country with over 1,-. 2!I &ank "!M proving to be one of the largest "!M
networks in the country. 2!I &ank India commits to adopt the best industry practices
internationally to achieve e%cellence. 2!I &ank has strengths in retail as well as corporate
banking.
&y the end of December ,..;) 2!I &ank in India had over ,.? million debit cards. !his
is the first bank in India to offer the "! A"+ *heque facility) without any charges) to all its
#avings &ank customers in all the places across the country where it has presence.
!he latest offerings of the bank along with Dollar variant is the $uro and Aound #terling
variants of the International !ravel *urrency *ard. !he !ravel *urrency *ard is a signature
based pre-paid travel card which enables travellers global access to their money in local
currency of the visiting country in a safe and convenient way.

#tock $%change where the shares of 2!I &ank are listed :
->

2!I Mutual und is managed by 2!I
"sset Management *ompany Arivate
Kimited '$stb: Dan 1;) ,..0( who has
been appointed by the 2!I !rustee *ompany Arivate Kimited
for managing the schemes of 2!I Mutual und and the schemes transferred L migrated
from 2!I Mutual und.
!he 2!I "sset Management *ompany has its registered office at : 2!I !ower) 6n
&lock) &andra - 9urla *omple%) &andra '$ast() Mumbai - ;.. .-1 will provide
professionally managed back office support for all business services of 2!I Mutual und
'e%cluding fund management( in accordance with the provisions of the Investment
Management "greement) the !rust Deed) the #$&I 'Mutual unds( +egulations and the
objectives of the schemes. #tate-of-the-art systems and communications are in place to
ensure a seamless flow across the various activities undertaken by 2!I "M*.
2!I "M* is a registered portfolio manager under the #$&I 'Aortfolio Managers(
+egulations) 1@@0 on ebruary 0 ,..;) for undertaking portfolio management services and
also acts as the manager and marketer to offshore funds through its 1.. / subsidiary) 2!I
international Kimited) registered in 6uernsey) *hannel Islands.


Sto). E-)1!"#$ Cod$ No7 ISIN No7
"hmedabad *ode 5o. >010;
Mumbai *ode 5o. -0,,1- < " 6roup
5#$ *ode 5o. 2!I&"59$R
G!*$I *ode 5o. Aermitted #ecurity
5#DK I#I5 5o. I5$,0=".1.,>
*D#K I#I5 5o. I5$,0=".1.,>
-?

2!I Mutual und has a track record of managing a variety of schemes catering to the needs
of every class of citi1enry. It has a nationwide network consisting ?. 2!I inancial *enters
'2*s( and 2!I International offices in Kondon) Dubai and &ahrain. Eith a view to reach
to common investors at district level) ; satellite offices have also been opened in select
towns and districts. It has a well-qualified) professional fund management team) who have
been highly empowered to manage funds with greater efficiency and accountability in the
sole interest of unit holders.

5"7 3istory < 3istorical value for a period of
1-Dec-,.1, to ,=-eb-,.10
2!I M2!2K 25D
2!I $quity und < 6rowth 4 Dividend
D"!$ DI7ID$5D 6+GE!3
.?-Dec-,.1, ;, ;?.;?
1;-Dec-,.1, ;,.0. ;?.=1
,1-Dec-,.1, ;1.-0 ;>.@-
,=-Dec-,.1, ;,.=; ;=.;-
.;-Dan-,.10 ;0.;? ;@.1?
11-Dan-,.10 ;0.?? ;@.-1
1=-Dan-,.10 ;0.@- ;@.?1
,--Dan-,.10 ;,... ;?.-,
1-eb-,.10 ;1.,= ;>.>@
=-eb-,.10 ;..1; ;-.;1
1--eb-,.10 ;..-; ;-.=>
,,-eb-,.10 ;..?? ;>.1,

UTI EAUITY FUND B Diid$"d : Gro4t1
-=

rom the above graph we can observe that 6rowth is showing more performance than
Dividends. In the month of eb we can see that 6rowth has fallen down in the last week
and raised in first week and the Dividend has also raised in the 1st week of eb. &ecause
of declaring Dividends frequently) the performance of Dividend always shows less when
compared with others
HSBC
-@

HSBC is the largest bank in 3ong 9ong and second largest group in the world after
*iticorp. &efore moving its headquarter to Kondon in 1@@.) it was headquartered in 3ong
9ong. 3#&* India is having branches in "hmedabad) &angalore) *hennai) *handigarh)
*oimbatore) 6urgaon) 3yderabad) Daipur) 9ochi) 9olkata) Kudhiana) Mumbai) 5ew Delhi)
5oida) Aune) !hane) !rivandrum and 7isakhapatnam.
3#&* 5+I centres are located in "sia-Aacific) the Middle $ast) $urope and 5orth
"merica. 3#&* 5+I centres provide full range of personal and private banking products in
India and overseas. 3#&* Internet banking adds to the services of 3#&* India abroad.
3#&* India) along with 3#&* Investment product and 3#&* Insurance) it offers
international 6old *ard and *lassic *redit *ards from 7I#" and Master*ard and debit
cards from 7isa. 3#&* in India gives ,; hour banking services) e%tensive network of
"!Ms) integrated *all *entre and also 3#&* e-banking.
HSBC B!". I"di! F!)t Fi'$
!he 3#&* 6roup develops and applies advanced technology to the efficient and
convenient delivery of banking and related financial services.
HSBC B!". I"di! ,roid$s t1$ %o''o4i"#:
#elf-service banking with over 1-. in-branch and off-branch "!Ms and ,;-hour phone
banking.
!rade and corporate banking services with real-time access to a centrali1ed information
database.
Instantaneous inter-city transactions through online connections between all branches.
" sophisticated card system supporting debit and credit cards) domestic and
international 7I#") Master*ard) and co-branded cards.
" dedicated acquiring system for both Master*ard and 7isa transactionsonlineUhsbc)
3#&* internet banking service) provides customers with an integrated and secure
platform to access their account.
>.

5"7 3istory < 3istorical value for a period of
1-Dec-,.1, to ,=-eb-,.10
3#&* M2!2"K 25D
3#&* $quity und < 6rowth 4 Dividend
D"!$ DI7ID$5D 6+GE!3
.?-Dec-,.1, ,@.10 @0.,.
1;-Dec-,.1, ,>.=- @0.=@
,1-Dec-,.1, ,>.10 @1.0?
,=-Dec-,.1, ,>.@0 @;.0-
.;-Dan-,.10 ,?.;= @-.0;
11-Dan-,.10 ,?.0? @-.?1
1=-Dan-,.10 ,?.;1 @-.=0
,--Dan-,.10 ,>..0 @1..1
1-eb-,.10 ,-.,- =@.-.
=-eb-,.10 ,-..@ =?.?-
1--eb-,.10 ,-.;? ==.1@
,,-eb-,.10 ,-.-; =@.01

HSBC EAUITY FUND B Diid$"d : Gro4t1
!he above graph there is little fluctuations in the values of Dividends and 6rowth. &ut
here we can see that 6rowth is again performing well. It showed a less performance in the
last week and Dividend showed similar performance in all the weeks. &ecause of declaring
Dividends frequently) the performance of Dividend always shows less when compared
with others
>1

ICICI BANK:
I*I*I Kimited was established in 1@-- by the Eorld &ank) the 6overnment of India and
the Indian Industry) for the promotion of industrial development in India by giving project
>,

and corporate finance to the industries in India.
I*I*I &ank has grown from a development bank to a financial conglomerate and has
become one of the largest public financial institutions in India. I*I*I &ank has financed all
the major sectors of the economy) covering >)=;= companies and 1>)=-1 projects. "s of
March 01) ,...) I*I*I had disbursed a total of +s. 1)10).?. crores) since inception.
ICICI B!". F!)t Fi'$s
!otal assets : +s.1;>),1; crore 'December 01) ,.1.(
5etwork : -0. branches
"!Ms : Gver 1)==.
"baroad #ubsidiaries : 2nited 9ingdom and *anada
"broad branches : #ingapore and &ahrain
+epresentative offices : 2nited #tates) *hina) 2nited "rab $mirates) &angladesh and #outh
"frica.
5"7 3istory < 3istorical value for a period of
>0

1-Dec-,.1, to ,=-eb-,.10
I*I*I A+2D$5!I"K M2!2"K 25D
I*I*I $M$+6I56 #!"+ 25D 6rowth 4 Dividend
D"!$ DI7ID$5D 6+GE!3
.?-Dec-,.1, 1-.>> ,=.>>
1;-Dec-,.1, 1-.?@ ,=.=@
,1-Dec-,.1, 1-.?; ,=.=.
,=-Dec-,.1, 1>.1? ,@.-@
.;-Dan-,.10 1>.?; 0..,;
11-Dan-,.10 1>.?. 0..==
1=-Dan-,.10 1?.1; 01.-.
,--Dan-,.10 1>.=> 0..0@
1-eb-,.10 1-.1@ 0..-1
=-eb-,.10 1;.?1 ,@.?=
1--eb-,.10 1;.@= 0..1@
,,-eb-,.10 1;.@. ,@.==
ICICI EAUITY FUND B Diid$"d : Gro4t1
>;

rom the above graph it indicates that the 6rowth and Dividend are performing similar but
in the month of eb both of them have declined .It had drastically fallen in the month of the
eb. rom the 1st week of Dec to 1st week of eb both have increased and the performance
showed is well. &ecause of declaring Dividends frequently) the performance of Dividend
always shows less when compared with others.
HDFC
>-

!he *orporation endeavors to engage the best talent) adopt the best practices and make
use of the best available technology for the benefit of its valued stakeholders
3D*Ns Investor #ervices Department 'I#D( is registered with the #ecurities and
$%change &oard of India '#$&I( as an In-3ouse #hare !ransfer "gent - *ategory II. !he
I#D has connectivity with the 5ational #ecurities Depository Kimited '5#DK( and *entral
Depository #ervices 'India( Kimited '*D#K(.
!he I#D offers services pertaining to share transfers) transmissions) demateriali1ation
of shares) issue of duplicateLre-validated dividend warrants) issue of duplicateLreplaced
share certificates) change of address and other related matters apart from providing various
value added services like remittance of dividend through $lectronic *learing #ervice '$*#(
and Direct *redit #ervice 'D*#() periodic reminders for encashment of unclaimed
dividends and sub-division of old share certificates.
!he Aurpose of Investors Desk is to communicate with the e%isting and potential
investors within and outside India) about the performance of the *orporation) share
ownership details) disclosures made to stock e%change on an ongoing basis and answers to
frequently asked questions etc.
>>

HDFC EAUITY FUND B Diid$"d : Gro4t1
5"7 3istory-3istorical 5"7 for a period
rom 1-Dec-,.1, to ,=-eb-,.10
3D* Mutual und
3D* $quity und
3D* $quity und-Dividend Alan 4 6rowth
D"!$ Dividend 6rowth
?-Dec-,.1, ;-.?; ,,?.=?
1;-Dec-,.1, ;-.-; ,,>.==
,1-Dec-,.1, ;;.=; ,,0.0@
,=-Dec-,.1, ;>.11 ,,@.>?
;-Dan-,.10 ;>.>= ,0,.--
11-Dan-,.10 ;?..= ,0;.-1
1=-Dan-,.10 ;?.-> ,0>.@,
,--Dan-,.10 ;-..= ,,;.--
1-eb-,.10 ;-.1> ,,;.@=
=-eb-,.10 ;;... ,1@.1=
1--eb-,.10 ;;.1; ,1@.=@
,,-eb-,.10 ;;.0@ ,,1.1;
>?

In this you can see that right from the starting month 6rowth is showing good performance
compare to Dividends. !here are some fluctuations in growth ) but in dividends the values
shown are almost constant. &ecause of declaring Dividends frequently)the performance of
Dividend always shows less when compared with others
NAV History B Histori)!' NAV %or ! P$riod %ro( >2D$)2<=>< to <?2F$02<=>C
>=

# & I I56 2!I 3#&* I*I*I 3D*
D"!$ Dividend Dividend Dividend Dividend Dividend Dividend
?-Dec-1, 00.0@ 1>..@ ;, ,@.10 1-.>>
;-.?;
1;-Dec-1, 00.-0 1>.,- ;,.0. ,>.=- 1-.?@
;-.-;
,1-Dec-1, 00..> 1>..> ;1.-0 ,>.10 1-.?;
;;.=;
,=-Dec-1, 0;..= 1>.;- ;,.=; ,>.@0 1>.1?
;>.11
;-Dan-10 ,@.;- 1>.-, ;0.;? ,?.;= 1>.?;
;>.>=
11-Dan-10 ,@.>, 1>.-= ;0.?? ,?.0? 1>.?.
;?..=
1=-Dan-10 ,@.?, 1>.-- ;0.@- ,?.;1 1?.1;
;?.->
,--Dan-10 ,=.;, 1>.11 ;,... ,>..0 1>.=>
;-..=
1-eb-10 ,?.@@ 1-.@, ;1.,= ,-.,- 1-.1@
;-.1>
=-eb-10 ,?.>0 1-.>= ;..1; ,-..@ 1;.?1
;;...
1--eb-10 ,?.?- 1-.?@ ;..-; ,-.;? 1;.@=
;;.1;
,,-eb-10 ,?.?? 1-.=- ;..?? ,-.-; 1;.@.
;;.0@
PERFORMANCE CHART OF DIVEDEND
NAV Gro4t1 B Gro4t1 o% NAV %or ! P$riod %ro( >2D$)2<=>< to <?2F$02<=>C
# & I I56 2!I 3#&* I*I*I 3D*
D"!$ 6rowth 6rowth 6rowth 6rowth 6rowth 6rowth
?-Dec-1, 0?.=. ,0... ;?.;? @0.,. ,=.>>
,,?.=?
>@

1;-Dec-1, 0?.@> ,0.,0 ;?.=1 @0.=@ ,=.=@
,,>.==
1?-Dec-1, 0?.;0 ,,.@> ;>.@- @1.0? ,=.=.
,,0.0@
,;-Dec-1, 0=.-@ ,0.-, ;=.;- @;.0- ,@.-@
,,@.>?
?-Dan-10 0@..; ,0.>, ;@.1? @-.0; 0..,;
,0,.--
1;-Dan-10 0@.,? ,0.?1 ;@.-1 @-.?1 0..==
,0;.-1
,1-Dan-10 0@.;. ,0.?= ;@.?1 @-.=0 01.-.
,0>.@,
,=-Dan-10 0?.>? ,0..0 ;?.-, @1..1 0..0@
,,;.--
;-eb-10 0?.11 ,,.?> ;>.>@ =@.-. 0..-1
,,;.@=
11-eb-10 0>.>, ,,.;0 ;-.;1 =?.?- ,@.?=
,1@.1=
1=-eb-10 0>.?= ,,.-? ;-.=> ==.1@ 0..1@
,1@.=@
,--eb-10 0>.=1 ,,.>> ;>.1, =@.01 ,@.==
,,1.1;
PERFORMANCE CHART OF GRO;TH
!he above graph clearly indicates the overall performance of $quity und-Dividend
and 6rowth of all the banks taken into consideration . In #&I) from the 1st week of Dec
both are almost performing same but in ,nd week of Dan the performance of 6rowth has
drastically changed when compared to Dividends) and again the performance showed is
similar in rest of the weeks. In I56 78#8") 6rowth is performing well when compared to
Dividends. rom the starting month 6rowth is high. !here are slight fluctuations in both
6rowth and Dividend. In 2!I) we can observe that 6rowth is showing more performance
than Dividends. In the month of eb we can see that 6rowth has fallen down in the last
?.

week and raised in first week and the Dividend has also raised in the 1st week of eb. In
3#&* )there is little fluctuations in the values of Dividends and 6rowth. &ut here we can
see that 6rowth is again performing well. It showed a less performance in the last week and
Dividend showed similar performance in all the weeks. In I*I*I) it indicates that the
6rowth and Dividend are performing similar but in the month of eb both of them have
declined .It had drastically fallen in the month of the eb. rom the 1st week of Dec to 1st
week of eb both have increased and the performance showed is well. In 3D*) right from
the starting month 6rowth is showing good performance compare to Dividends. !here are
some fluctuations in 6rowth ) but in dividends the values shown are almost constant.
&ecause of declaring Dividends frequently) the performance of Dividend always shows less
when compared with others.
rom the above graph it clearly indicates that the 3D* bank is showing e%cellent
performance when compared to other &anks. !he *orporate &anking sectors are showing
good performance than nationali1ed &anking sectors .
?1

FINDINGS & CONCLUSION
Fi"di"#s : )o")'&sio"
rom the table 1 'i.e.( #&I bank we can see that both Dividend and 6rowth are
similar to each other .where as growth has been increased in the ,
nd
week of Dan
with a value of ,@.>;/.
In 2!I bank table we can see that growth has performed well when compared to
dividends. !here was a slight fluctuation in the values of dividends and growth.
?,

In I56 78#8" bank table we can see that performance of growth was good. !he
dividends was constant in there values. During the first week of eb the 5"7
values of both Dividends and 6rowth were high.
Ehen we see corporate banks 'i e( 3D* the performance of 6rowth is very good
when compared to Dividends. !his bank has been shown a positive performance
when compared to other banks were it is good for investing in this bank.
Ehen we see I*I*I bank both the Dividends and 6rowth are equal or similar to
each other there is no change in them. In the month of eb it raised in the first week
but it had a drastic fall in all the following weeks
Ehen we see 3#&* bank here again growth has been performed well when we
compare to dividends. !his increase in the value has been reached to certain e%tent
and it has been declined in last week of eb.
If we compare 5ationali1ed and *orporate banks we can see that corporate banks
have performed well during these 0 months.
5ationali1ed banks performed well up to certain e%tent and it values were declining
further. !his decline may cause due to declaration of any dividends in those banks
and so it was showing low values.
In 5ationali1ed banks we can see internally in Dividends #&I bank has performed
well and if wee see 6rowth 2!I bank has performed well.
In corporate banks we can see internally in Dividends and 6rowth 3D* bank has
performed relatively well when compare to other banks. &oth the values are high in
this bank. It had reached to a ma%imum height.
?0

"fter seeing both the sectors we can say that corporate sector has performed well
when compared to nationali1ed sector. !his is because of the increase in technology)
various schemes used and introduced) various benefits given to customers)
introduction of online facilities for customers in the corporate sectors.
#o its better for investors to invest in corporate sectors rather than investing in
5ationali1ed sector which gives them ma%imum number of return for their
investment.
?;

SUGGESTIONS
SUGGESTIONS
?-

I suggest the investors to invest in corporate sectors rather than investing in
nationali1ed sector.
*orporate sectors provide good services if we see through customer point of view.
!hey are very caring to their customers.
Eith the increase in infrastructure) technology) introduction of various schemes and
services) online trading its clear that any one wants to invest will surely invest in
corporate banks.
5ow you can see most of them are opening their account in corporate banks instead
of nationali1ed banks this is due to e%tra benefit and services which they are getting
from that sector.
?>

TIPS FOR MUTUAL FUND INVESTORS: 8SUGGESTIONS9
!hese are the few e%act as regards investment in MNs taken from the book with
HMarketing for the @.NsI given by the Eall #treet.
*heck your letter of offer of funds prospectus to guard yourselves against any hidden fees.
$nsue that the funds track record is the same as that of the current management.
"void Mutual unds that charge e%it fees at the back end door 'fees charged by M from
the unit holders at the time to redemption of the units(.
&uy the funds with no sale charged loads. 'a load is a charge by the fund when investor
buys it is called the entry load or when he sells is called the e%it load(.
If the charge is heavy by the mutual fund to discourage the investors from taking short
positions in the funds units because too many investors sell their units at a time then the
fund has to sell its holdings to meet the obligations that yield into vital of the fines overall
return. Most short funds like guilt funds 'these are the funds which can be invested only in
government securities and treasury bills thus the investors have an opportunity to buy risk
free securities(. !hese funds yield a better return than a money market fund. It is good for
the investors who desire safety of principal amount. Money market funds 'these funds in
views in money market instruments such as treasury bills) govt.bonds) certificates of bank
deposits) commercial deposits(. !hey charge no loads) however loads are limited by #$&I
to ?/.
*heck funds performance in bear as well as the bull market.
6uard fund risk by checking its portfolio for diversification volatility.

??


GLOSSARY
?=

FREAUENTLY USED TERMS
N$t Ass$t V!'&$ 8NAV9
5et "sset 7alue is the market value of the assets of the scheme minus its liabilities. !he per
unit 5"7 is the net asset value of the scheme divided by the number of units outstanding
on the 7aluation Date.
Is the price at which a close-ended scheme repurchases its units and it may include a back-
end load. !his is also called &id Arice.
R$d$(,tio" Pri)$
Is the price at which open-ended schemes repurchase their units and close-ended schemes
redeem their units on maturity. #uch prices are 5"7 related
S!'$s Lo!d
Is a charge collected by a scheme when it sells the units. "lso called) Mront-endN load.
#chemes that do not charge a load are called M5o KoadN schemes
R$,&r)1!s$ or DB!).2$"dE Lo!d
Is a charge collected by a scheme when it buys back the units from the unit holders
?@

i!iliogra"#$
%ESITES&
=.

WWW.INVESTOPEDIA.COM
WWW.MONEYPORE.COM
WWW.NETWORTHSTOCK.COM
WWW.AMFIINDIA.COM
WWW.MYIRIS.COM
=1