EXECUTIVE SUMMARY

The stock market has always been epicenter for common man. It was belief amongst the middle
class, that it is a playground where only rich played, where big money made bigger money. The
new entrants were often mercilessly whipped and lost their life savings. Often swearing never to
look at the stock market. Therefore middle & lower classes preferred to stay away from equity
because they could not afford to lose such huge amount at a single stretch.

This project is dedicated to common man, who fascinated by stock market but prefers to stay
away. It is just because of lack of knowledge. This will serve the purpose of middle & lower
class people who are looking for new avenues for investment. It may very well serve the purpose
of being a text on the introduction to investing in equity. It also gives step-by-step knowledge
about stock market, trading mechanism & risk factor involved in most logical manner. So, that
one can study itself by using this knowledge & invest his/her money in equity and earn
handsome return.

The first section of the project conveys about investments and different investment opportunities
available for investment. It also gives merits & demerits of available investment opportunities.
After that it explain the concept of equity, how one can invest in equity, different types of market
& also explain in detail how the trade procedure actually goes in stock market. This project also
covers up comparative analysis of all investment option available in Aditya Birla money with
investment pattern.

After that in section 3 it tells about regulatory framework. That is regulatory bodies which
controls stock market i.e. SEBI. It also covers NSE, BSE working mechanism.

1
OBJECTIVES

To give idea to retail investor about the concept of fundamental analysis of shares the
safest approach for investing in stock market.
Prospects & constraint of investing in shares.
Through the project create awareness among the retail investor about equity and attracts
them to invest in shares.
To study the future of flat charges in India.
To learn different patterns of investment
To disseminate the improvement suggested by the customer to the organization.
To evaluate the advantages and disadvantages of the various schemes launched by a
Brokerage firm on itself.
To draw a comparison between Aditya Birla flat & Kodak flat
To understand Customer behavior in investment pattern
Pyramids of customers and their interest I investment

2
RESEARCH METHODOLOGY

RESEARCH DESIGN:-
The Research Design is that conceptual structure with in which research is
conducted. It constitutes the blue print for the collection, measurement and
analyses of data. In this research descriptive research design is used because my research is
concerned with perception aditya Birla money product (IPOs, MF, Equity, Derivatives (Future
& Options), PS, Insurance, and Demat )

Secondary data source includes:

Advertisement pamphlets.
World Wide Web.
Newspapers & Magazines.
Company Magazines.

3
SWOT ANALYSIS OF STOCK MARKET

STRENGTH
Stock market or mutual fund gives more return than any other deposit
Scheme like bank deposits or monthly deposit in post office. Company fixed deposits and
other small savings conducted by government.

WEAKNESS
Market is very flexible and risky. So people who have much idea about the market may lose
their money.

OPPORTUNITY
Current economic situation and monetary policy of government gives Strength to the stock
market so it gives opportunity to investors to invest their money in stock market.

THREAT
Banks and post offices and other investment schemes are attack on
market potential of stock market.

4
COMPANY PROFILE

Aditya Birla Money offers the following services:

rivative segment on NSE &
BSE through a single platform

etc. through its subsidiary, Aditya Birla Commodities Broking Limited

L

About Aditya Birla Group

A US $28 billion conglomerate, the Aditya Birla Group is in the league of Fortune500
worldwide. It is anchored by an extraordinary force of 100,000 employees, belonging to 25
different nationalities. The group operates in 25 countries across six continents truly India's
first multinational corporation.
Aditya Birla Group through Aditya Birla Financial Services Group (ABFSG),
has a strong presence across various financial services verticals that include life insurance, fund
management, distribution & wealth management, security based lending, insurance broking,
private equity and retail broking. The seven companies representing ABFSG are Birla Sun Life
Insurance Company, Birla Sun Life Asset Management Company, Birla Sun Life Distribution
Company, Birla Global Finance Company, Birla Insurance Advisory & Broking Services, Aditya
Birla Capital Advisors and Aditya Birla Money. In FY 2008-09, the consolidated revenues of
ABFSG from these businesses crossed Rs. 4763 crores, registering a growth rate of 36%.

5
Key developments for Aditya Birla Money Limited

Aditya Birla Money Limited expected to report Fiscal Year 2011resultson April 17,
2011. This event was calculated by Capital IQ(Created on August 27, 2010). Aditya Birla
Money Limited expected to report Fiscal Year 2011 results on April 17, 2011. This event was
calculated by Capital IQ (Created on August 27, 2010).

Aditya Birla Money Limited expected to report Q2 2011 results on

October 21, 2010. This event was calculated by Capital IQ (Created on
July 25, 2010).
Aditya Birla Money Limited expected to report Q2 2011 results on October 21, 2010. This event
was calculated by Capital IQ (Created on July 25,2010).

Aditya Birla Money Limited Reports Unaudited Earnings Results for the First Quarter
Ended June 30, 2010
Aditya Birla Money Limited reported unaudited earnings results for the first quarter ended June
30, 2010. For the quarter, the company reported net profit after tax of INR 30.135 million or INR
0.54 per basic and diluted share on income from operations of INR 281.476 million compared to
net profit after tax of INR 27.159 million or INR 0.49 per basic and diluted share on income
from operations of INR 266.693million for the same quarter a year ago. Profit from operations
before other income & interest was INR 44.387 million compared to INR 44.772million for the
same quarter a year ago.

Aditya Birla Money Limited - Strategic Analysis Review

This comprehensive SWOT profile of Aditya Birla Money Limited provides you an in-depth
strategic analysis of the companys businesses and operations. The profile has been compiled by
Global Data to bri.....
More about this market survey
This comprehensive SWOT profile of Aditya Birla Money Limited provides you an in-depth
strategic analysis of the companys businesses and operations. The profile has been compiled by

6
Global Data to bring to you a clear and an unbiased view of the companys key strengths and
weaknesses and the potential opportunities and threats. The profile helps you formulate strategies
that augment your business by enabling you to
understand your partners, customers and competitors better. This company report forms part of
Global Datas Profile on Demand Service, covering over 50,000 of the worlds leading
companies. Once purchased, Global Datas highly qualified team of company analysts will
comprehensively research and author a full strategic analysis of Aditya Birla Money Limited,
and deliver this direct to you in pdf format within two business days (excluding weekends).
The profile contains critical company information including*,
- Business description
A detailed description of the companys operations and business divisions.
- Corporate strategy
Analysts summarization of the companys business strategy.
- SWOT Analysis
A detailed analysis of the companys strengths, weakness, opportunities and threats.
- Company history
Progression of key events associated with the company.
- Major products and services
A list of major products, services and brands of the company.
A list of key competitors to the company.
- Key employees
A list of the key executives of the company.
- Executive biographies
A brief summary of the executives employment history.
- Key operational heads
A list of personnel heading key departments/functions.
- Important locations and subsidiaries
A list and contact details of key locations and subsidiaries of the company.
Note*: Some sections may be missing if data is unavailable for the
company.

7
Key benefits of buying this profile include, You get detailed information about the company and
its operations to identify potential customers and suppliers.
- The profile analyzes the companys business structure, operations, major products and services,
prospects, locations and subsidiaries, key executives and their biographies and key competitors.
Understand and respond to your competitors business structure and strategies, and capitalize on
their weaknesses. Stay up to date on the major developments affecting the company.
- The companys core strengths and weaknesses and areas of development or decline are
analyzed and presented in the profile objectively. Recent developments in the company covered
in the profile help you track important events. Equip yourself with information that enables you
to sharpen your strategies and transform your operations profitably.
- Opportunities that the company can explore and exploit are sized up and its growth potential
assessed in the profile. Competitive and/or technological threats are highlighted. Gain key
insights into the company for academic or business research.
- Key elements such as SWOT analysis and corporate strategy are incorporated in the profile to
assist your academic or business research needs.

8
COMPETITORS ANALYSIS ON MUTUAL FUND

ICICI direct.com is a website from the ICICI group, that allows to buy and sell Shares, invest in
Mutual Funds, IPOs, Postal savings like NSC (National Savings Certificate) and KVP (Kisan
Vikas Patra), Life Insurance and General Insurance, Derivatives (F&O), GOI Bonds through
the internet. A client can also use the Call N trade facility, wherein he/she can place orders over
phone available across 400 cities of the country.
The company was incorporated on December 02 1999 & it received certificate for
commencement of business from the register of companies, Maharashtra on Jan. 17, 2000. ICICI
web trade ltd. Commenced commercial operation on April 17, 2000

Features of ICICI Direct.com: The following are the benefits of using ICICI account
des

with PINS
give an end-to-end online offering.
red Socket Layer (SSL) with 128 bit
encryption

-out

9
5paisa.com
5paisa is the trade name of India Info line Securities Private Limited (5paisa),
member of National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is a wholly
owned subsidiary of India Info line Ltd, Indias leading and most popular finance and investment
portal. 5paisa has emerged as one of leading players in e-broking space in India. Our key product
offerings are as follows:
Target customer segment
Trader Terminal is almost a substitute for NSE NEAT terminal and VSAT. In fact, it has many
more powerful features that only a premium trader can appreciate.

sometimes several times a day. Their rapid and high volume trading requires a
powerful interface for lightening fast order execution.

and action swiftly.

portfolios

Trader Terminal features

ion in a fraction of a second!

-by-tick.

transactions at one click.

10
 access to both accounts and DP.

- bit super safe encryption.

-day technical calls.

- acclaimed news service and research.

11
INDIA BULLS

India bulls is a depository participant with the National Securities Depository Limited and
Central Depository Services (India) Limited for trading and settlement of dematerialized shares.
India bulls performs clearing services for all securities transactions through its accounts. They
offers depository services to create a seamless transaction platform execute trades through
India bulls Securities and settle these transactions through the India bulls Depository Services.
India bulls Depository Services is part of their value added services for their clients that create
multiple interfaces with the client and provide for a solution that takes care of all customers
needs.
CO FOUNDER:
Sameer Gehlaut is the Chairman, CEO and Whole Time Director of India bulls. Sameer is an
engineer from IIT, Delhi (1995) and has worked internationally with Halliburton in its
international services business in 1995. He has utilized his experience with the international best
practices and professional work culture at Halliburton to lead India bulls successfully. Rajiv
Rattan is the President, CFO and Whole Time Director of India bulls. Rajiv is an engineer from
IIT, Delhi (1994) and has rich experience in the oil industry, having worked extensively across
the globe in highly responsible assignments with Schlumberger. Rajiv has managed remote
exploration projects providing evaluation services for different clients in India as well as abroad.
Saurabh Mittal is a Director at India bulls. Declared the best graduating student in IIT, Delhi
in(1995), Saurabh was also one of the engineers selected by Schlumberger to work for its
international services business in 1995 and gained experience of working in various glob
allocations. He graduated as a Baker Scholar with an MBA from the Harvard Business School.
He has also developed in-depth understanding of international financial markets.

12
HDFC SEC

HDFC sec is a brand brought by HDFC Securities Ltd, which has been promoted by the HDFC
Bank & HDFC with the objective of providing the diverse customer base of the HDFC Group
and other investors a capability to transact in the Stock Exchanges & other financial market
transactions.
OBJECTIVE
Buying and selling of select mutual funds units, subscription to initial public offerings, public
issues and rights issues, and purchase of insurance policies and facilitating asset financing (house
and car loans for instance). These products and services would of course be provided subject to
the prevailing rules & regulations of HDFC sec., the regulatory body, the Securities Exchange
Board of India (SEBI) and the relevant stock exchanges
Products & Services
-n-Carry on both NSE and BSE.

g (house and car loans for instance).

13
KARVY

Karvy has traveled the success route, towards building a reputation as an integrated financial
services provider, offering a wide spectrum of services for over 20 years. Karvy, a name long
committed to service at its best. A fame acquired through the range of corporate and retail
services including mutual funds, fixed income, equity investments, insurance to name a
few. Their values and vision of attaining total competence in our servicing has served as
abuilding block for creating a great financial enterprise. The birth of Karvy was on a modest
scale in the year 1982. It began with the vision and enterprise of a small group of practicing
Chartered Accountants based in Hyderabad, who founded Karvy. They started with consulting
and financial accounting automation, and then carved inroads into the field of Registry and Share
Transfers.
Since then, they have utilized our quality experience and superlative expertise to go from
strength to strength to provide better and new services to the investors. And today, we can look
with pride at the fruits of our experience into comprehensive financial services provider in the
Country. KARVY Group companies are:
1. Karvy Consultants Limited
2. Karvy Stock Broking Limited
3. Karvy Investor Services Limited
4. Karvy Computer share Private Limited
5. Karvy Global Services Limited
6. Karvy Comtrade Limited
7. Karvy Insurance Broking Private Limited
8. Karvy Mutual Fund Services
9. Karvy Securities Limited

14
KOTAK SECURITIES LIMITED

Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, is the stock broking and
distribution arm of the Kotak Mahindra Group. The company was set up in 1994. Kotak
Securities is a corporate member of both The Bombay Stock Exchange and The national Stock
Exchange of India Limited. Its operations include stockbroking and distribution of various
financial products - including private and secondary placement of debt and equity and mutual
funds. Currently, Kotak Securities is one of the largest roking houses in India with wide
geographical reach.
The company has four main areas of business:
(1) Institutional Equities,
(2) Retail (equities and other financial products),
(3) Portfolio Management and
(4) Depository Services.
Institutional Business
This division primarily covers secondary market broking. It caters to the needs of foreign
and Indian institutional investors in Indian equities (both local shares and GDRs). The division
also incorporates a comprehensive research cell with sectoral analysts who cover all the major
areas of the Indian economy.
Client Money Management
This division provides professional portfolio management services to high net-worth individuals
and corporate. Its expertise in research and stock broking gives the company the right
perspective from which to provide its clients with investment advisory services.
Retail distribution of financial products
Kotak Securities has a comprehensive retail distribution network, comprising approximately
7000 agents, 13 branches and over 20 franchisees across India. This network is used for the
distribution and placement of a range of financial products that includes company fixed deposits,
mutual funds, Initial Public Offerings, secondary debt and equity and small savings schemes.
Depository Services
Kotak Securities is a depository participant with the National Securities Depository

15
Limited and Central Depository Services (India) Limited for trading and settlement of
dematerialized shares. Since it is also in the broking business, investors who use its depository
services get a dual benefit. They are able to use its brokerage services to execute transactions and
its depository services to settle these. Kotak Securities' width, volume and quality of offerings
regularly earn it accolades from industry monitors. In recent times, these have included: Mr.
Uday Kotak Executive Vice Chairman & Managing Director KCL as a Primary Dealer offers
the following products /services through its branches at Mumbai, Delhi, Calcutta, Chennai,
Ahmedabad and Bangalore.
Trading in
1) Central and State Government Dated Securities
2) Treasury Bills of Varying maturities
3)Public Sector Bonds both Taxable & Tax-free Commercial Paper
Other Services:
1) Call Money Operations*
2) Research -The Company publishes various newsletters for the benefit of investors and market
participants
3) Placing of Corporate funds into Call money market*
4) Constituent SGL Accounts*

16
MOTILAL OSWAL SECURITIES

Motilal Oswal Securities Ltd. (MOSt) is arguably one of the best brands among Indian Domestic
broking houses enjoying an unmatched and unparallel brand recall. Financially sound, with an
excellent track record of consistent market growth in all key business segments. MOSt is spread
across 24 states in 200 cities through 300 Business Associates and 52 branches. To reach out to
more investors across India, MOSt builds partnership with high caliber and likeminded
individuals and companies who share similar business philosophy, ethics and values, a sound
client base and having the zeal and potential to capture a larger market share within their allotted
territory.
Depository Services
In the times of T+2 having a demat account linked to your trading account becomes really
convenient. The non-trading members also can avail of our Depository services. You
receiveregular account reports and an efficient service at all times. MOSt is a member of both
NSDLand CDSL and the service is available at all our outlets in India.
Depository Service Provided By MODES
Account Opening, Dematerialization, Rematerialization, Account Transfer, Transmission
,Nomination, Pledging and Hypothecation, Account Closures.
Derivatives Derivatives (Futures & Options) are ideal instruments to protect your portfolio
against risk. You can trade with index movements, hedge and leverage your portfolio by limiting
risk but keeping your upside unlimited.
Equity Research
Equity Research is an inherent strength of MOSt. MOSt believes in picking investment
opportunities where the underlying value is higher than the market price

17
COMPARATIVE ANALYSIS
PRODUCTS AND SERVICES ALONG WITH FEES OFFERED
BYSECURITIES COMPANIES

18
PRODUCTS AND SERVICES

19
Investment Analysis Mutual Fund

MUTUAL FUND
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 funds are known as
unit holders. The investors, in proportion to their investments, share the profits or losses. The
mutual funds normally come out with a number of schemes with different investment objectives,
which are launched from time to time. A mutual fund is required to be registered with Securities
and Exchange Board of India (SEBI), which regulates securities markets before it can collect
funds from the public.

What is the history of Mutual Funds in India and role of SEBI in mutual funds
industry?
Unit Trust of India was the first mutual fund set up in India in the year 1963. In early1990s,
Government allowed public sector banks and institutions to set up mutual funds.
In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. The
objectives of SEBI are - to protect the interest of investors in securities and to promote the
development of and to regulate the securities market. As far as mutual funds are concerned,
SEBI formulates policies and regulates the mutual funds to protect the interest of the investors.
SEBI notified regulations for the mutual funds in 1993. Thereafter, mutual funds sponsored by
private sector entities were allowed to enter the capital market. The regulations were fully
revised in 1996 and have been amended thereafter from time to time. SEBI has also issued
guidelines to the mutual funds from time to time to protect the interests of investors .All mutual
funds whether promoted by public sector or private sector entities including those promoted by
foreign entities are governed by the same set of Regulations. There is no distinction in regulatory
requirements for these mutual funds and all are subject to monitoring and inspections by SEBI.

20
The risks associated with the schemes launched by the mutual funds sponsored by these entities
are of similar type.

What is an Asset Management Company?

The AMC acts as the investment manager of the Trust. The Trustees, with the approval of SEBI,
appoints the AMC. The AMC manages the different investment schemes of a mutual fund. An
AMC may have several mutual fund schemes with similar or varied investment objectives.
Besides its role as the Fund Manager, the AMC may undertake specified activities such as
advisory services and financial consulting. The AMC also undertakes Customer Services,
Accounting, Marketing and Sales functions for the schemes of the mutual fund.

How is a mutual fund set up?

A mutual fund is set up in the form of a trust, which has sponsor, trustees, asset management
company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor
who is like promoter of a company. The trustees of the mutual fund hold its property for the
benefit of the unit holders. Asset Management Company (AMC)approved by SEBI manages the
funds by making investments in various types of securities. Custodian, who is registered with
SEBI, holds the securities of various schemes of the fund in its custody. The trustees are vested
with the general power of superintendence and direction over AMC. They monitor the
performance and compliance of SEBI Regulations by the mutual fund. SEBI Regulations 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. Also, 50% of the directors of
AMC must be independent. All mutual funds are required to be registered with SEBI before they
launch any scheme.

What are the benefits of investing through the mutual fund route?
For investors who have limited resources available in terms of capital and the ability to carry out
detailed research and market monitoring, mutual funds offer the following major advantages :-
Portfolio Diversification
This enables an investor to hold a diversified investment portfolio, even with a small amount of
investment that would otherwise require big capital.

21
 Professional Management
A team of professional fund managers manages them with in-depth research inputs from
investment analysts.
Reduction / Diversification of Risk
However small his investment, an investor in a mutual fund directly acquires a diversified
portfolio, which reduces his risk of loss as compared to investing directly in a few instruments.
Reduced Transaction Costs
An investor can reap the benefits of the 'Economies of Scale' as funds pay lesser costs on
brokerage, custodian charges etc, because of larger volumes.
Convenience and flexibility
Investors can easily transfer their holdings from one scheme to another; get updated market
information and so on.
What is Net Asset Value (NAV) of a scheme?
Net Asset Value (NAV) denotes the performance of a particular scheme of a mutual fund.
Mutual funds invest the money collected from the investors in securities markets. In simple
words, Net Asset Value is the market value of the securities held by the scheme. Since market
value of securities changes every day, NAV of a scheme also varies on day-to-day basis. The
NAV per unit is the market value of securities of a scheme divided by the total number of units
of the scheme on any particular date. For example, if the market value of securities of a mutual
fund scheme is Rs 200 lakhs and the mutual fund has issued 10 lakhs units of Rs. 10 each to the
investors, then the NAV per unit of the fund is Rs.20. NAV is required to be disclosed by the
mutual funds on a regular basis - daily or weekly - depending on the type of scheme.
What are the different types of Mutual fund Schemes?
Schemes according to Maturity Period:
A mutual fund scheme can be classified into open-ended scheme or close-ended schemed
pending on its maturity period.

Open-ended Fund/ Scheme

An open-ended fund or scheme is one that is available for subscription and repurchase on a
continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently

22
buy and sell units at Net Asset Value (NAV) related prices, which are declared on a daily basis.
The key feature of open-end schemes is liquidity.

Close-ended Fund/ Scheme

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open
for subscription only during a specified period at the time of launch of the scheme. Investors can
invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the
units of the scheme on the stock exchanges where the units are listed. In order to provide an exit
route to the investors, some close-ended funds give an option of selling back the units to the
mutual fund through periodic purchase at NAV related prices. SEBI Regulations stipulate that at
least one of the two exit routes is provided to the investor i.e. either repurchase facility or
through listing on stock exchanges. These mutual funds schemes disclose NAV generally on
weekly basis.

Schemes according to Investment Objective:

A scheme can also be classified as growth scheme, income scheme, or balanced scheme
considering its investment objective. Such schemes may be open-ended or close-ended schemes
as described earlier. Such schemes may be classified mainly as follows:

Growth / Equity Oriented Scheme

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

Income / Debt Oriented Scheme

The aim of income funds is to provide regular and steady income to investors. Such schemes
generally invest in fixed income securities such as bonds, corporate debentures, Government

23
securities and money market instruments. Such funds are less risky compared to equity schemes.
These funds are not affected because of fluctuations in equity markets. However, opportunities
of capital appreciation are also limited in such funds. The NAVs of such funds are affected
because of change in interest rates in the country. If the interest rates fall, NAVs of such funds
are likely to increase in the short run and vice versa. However, long-term investors may not
bother about these fluctuations.

Balanced Fund
The aim of balanced funds is to provide both growth and regular income as such schemes invest
both in equities and fixed income securities in the proportion indicated in their offer documents.
These are appropriate for investors looking for moderate growth. They generally invest 40-
60%in equity and debt instruments. These funds are also affected because of fluctuations in share
prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared
to pure equity funds.

Money Market or Liquid Fund

These funds are also income funds and their aim is to provide easy liquidity, preservation of
capital and moderate income. These schemes invest exclusively in safer short-term instruments
such as treasury bills, certificates of deposit, commercial paper and inter-bank call money,
government securities, etc. Returns on these schemes fluctuate much less compared to other
funds. These funds are appropriate for corporate and individual investors as a means to park their
surplus funds for short periods.

Gilt Fund
These funds invest exclusively in government securities. Government securities have no default
risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic
factors as are the case with income or debt oriented schemes.

Index Funds
Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index,
S&PNSE 50 index (Nifty), etc These schemes invest in the securities in the same weightage

24
comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or
fall in the index, though not exactly by the same percentage due to some factors known as
"tracking error" in technical terms. Necessary disclosures in this regard are made in the offer
document of the mutual fund scheme. There are also exchange traded index funds launched by
the mutual funds, which are traded on the stock exchanges.

What are Sector specific funds/schemes?

These are the funds/schemes, which invest in the securities of only those sectors or industries as
specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer
Goods(FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the
performance of the respective sectors/industries. While these funds may give higher returns, they
are more risky compared to diversified funds. Investors need to keep a watch on the performance
of those sectors/industries and must exit at an appropriate time. They may also seek advice of an
expert.

What are Tax Saving Schemes?

These schemes offer tax rebates to the investors under specific provisions of the income Tax
Act,1961 as the Government offers tax incentives for investment in specified avenues. e.g.
Equity Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also
offer tax benefits. These schemes are growth oriented and invest pre-dominantly in equities.
Their growth opportunities and risks associated are like any equity-oriented scheme.

What is a Systematic Investment Plan?

Unit holders can benefit by investing specified rupee amounts at regular intervals for a
continuous period. The SIP allows the unit holders to invest a fixed amount of rupees at regular
intervals for purchasing additional Units of the Schemes at NAV based prices. This concept is
called Rupee Cost Averaging.

What are the benefits of a Systematic Investment Plan?

By investing an equivalent amount at regular intervals, each month for example, the investors do
not have to worry about catching market highs and lows, because their monthly contribution will

25
buy more Units when prices are low and fewer Units when prices are high. The net result is that,
over a long period of time, their average cost could be lower than the average market price, and
when they eventually sell your Units, their gain could be higher than if they had invested a lump
sum. Thus, by investing a fixed amount of Rupees at regular intervals, Unit holders can take
advantage of the benefits of Rupee Cost Averaging, at the same time saving a fixed amount of
Rupees each month.

What is a Systematic Withdrawal Plan?

A Systematic Withdrawal Plan is a strategy that allows the unit holder to withdraw a specified
sum of money each month / quarter from his investments in the scheme.
What are the benefits of a Systematic Withdrawal Plan? An SWP is ideal for investors seeking
a regular inflow of funds for their needs. It is also ideally suited to retirees or individuals, who
wish to invest a lump sum and withdraw from the
investment over a period of time.

What are Entry/Exit Loads and CDSC?

Charges levied by fund managers to the investors to cover distribution / sales / marketing
expenses are often called loads. The load charged to an investor at the time of an investor's entry
into a scheme / fund, by deducting a specific amount from his initial contribution is called an
Entry load. The load charged to an investor at the time of an investor's exit from a scheme / und,
by deducting a specific amount from his redemption proceeds is called an Exit load. Some funds
may also charge different amounts of loads to the investors, depending upon how many years the
investor has stayed with the fund; the longer the investor stays with the und, less the amount of
'exit load' he is charged. This is called 'Contingent Deferred Sales Charge'(CDSC).

What is a Load or no-load Fund?

A Load Fund is one that charges a percentage of NAV for entry or exit. That is, each time one
buys or sells units in the fund, a charge will be payable. This charge is used by the mutual fund
for marketing and distribution expenses. Suppose the NAV per unit is Rs.10. If the entry as well

26
as exit load charged is 1%, then the investors who buy would be required to pay Rs.10.10 and
those who offer their units for repurchase to the mutual fund will get only Rs.9.90 per unit. The
investors should take the loads into consideration while making investment as these affect their
yields/returns. However, the investors should also consider the performance track record and
service standards of the mutual fund, which are more important. Efficient funds may give higher
returns in spite of loads. A no-load fund is one that does not charge for entry or exit. It means the
investors can enter the fund/scheme at NAV and no additional charges are payable on purchase
or sale of units.

What is Sales/Purchase price?

The price or NAV a unit holder is charged while investing in an open-ended scheme is called
sales price. It may include sales load, if applicable.

What is repurchase / redemption price?

Repurchase or redemption price is the price or NAV at which an open-ended scheme purchases
or redeems its units from the unit holders. It may include exit load, if applicable.

What is a Switch?
Some Mutual Funds provide the investor with an option to shift his investment from one scheme
to another within that fund. The Switch will be effected by way of a redemption of Units from
the scheme and a reinvestment of the redemption proceeds in the 'Other Scheme(s)' subject to the
compliance of the switch with the redemption rules of this Scheme and the issue rules of the
'other scheme'. The price at which the Units will be switched out of the Scheme, will be based on
the applicable redemption price and the proceeds will be invested in the 'other scheme' the
prevailing Public Offer Price (POP) for units in that Scheme. Switching allows the Investor to
alter the allocation of their investment among the schemes in order to meet their changed
investment needs, risk profiles or changing circumstances during their lifetime.

What is an assured return scheme?

Assured return schemes are those schemes that assure a specific return to the unit holders
irrespective of performance of the scheme. A scheme cannot promise returns unless such returns

27
are fully guaranteed by the sponsor or AMC and this is required to be disclosed in the offer
document. Investors should carefully read the offer document whether return is assured for the
entire period of the scheme or only for a certain period. Some schemes assure returns one year at
a time and they review and change it at the beginning of the next year.

Can a mutual fund change the asset allocation while deploying funds of investors?
Considering the market trends, any prudent fund managers can change the asset allocation i.e. he
can invest higher or lower percentage of the fund in equity or debt instruments compared to what
is disclosed in the offer document. It can be done on a short term basis on defensive
considerations i.e. to protect the NAV. Hence the fund managers are allowed certain flexibility in
altering the asset allocation considering the interest of the investors. In case the mutual fund
wants to change the asset allocation on a permanent basis, they are required to inform the unit
holders and giving them option to exit the scheme at prevailing NAV without any load

Can non-resident Indians (NRIs) invest in mutual funds?

Yes, non-resident Indians can also invest in mutual funds. Necessary details in this respect are
given in the offer documents of the schemes.

How to invest in a scheme of a mutual fund?

Mutual funds normally come out with an advertisement in newspapers publishing the date of
launch of the new schemes. Investors can also contact the agents and distributors of mutual funds
who are spread all over the country for necessary information and application forms. Forms can
be deposited with mutual funds through the agents and distributors who provide such services.
Now days, the post offices and banks also distribute the units of mutual funds. However, the
investors may please note that the mutual funds schemes being marketed by banks and post
offices should not be taken as their own schemes and they give no assurance of returns. The only
role of banks and post offices is to help in distribution of mutual funds schemes to the investors.
Investors should not be carried away by commission/gifts given by agents/distributors for
investing in a particular scheme. On the other hand they must consider the track record of the
mutual fund and should take objective decisions.

28
 How much should one invest in debt or equity oriented schemes?
An investor should take into account his risk taking capacity, age factor, financial position, etc.
As already mentioned, the schemes invest in different type of securities as disclosed in the offer
documents and offer different returns and risks. Investors may also consult financial experts
before taking decisions. Agents and distributors may also help in this regard.

What should an investor look into an offer document?

An abridged offer document, which contains very useful information, is required to be given to
the prospective investor by the mutual fund. The application form for subscription to a scheme is
an integral part of the offer document. SEBI has prescribed minimum disclosures in the offer
document. An investor, before investing in a scheme, should carefully read the offer document.
Due care must be given to portions relating to main features of the scheme, risk factors, initial
issue expenses and recurring expenses to be charged to the scheme, entry or exit loads, sponsor's
track record, educational qualification and work experience of key personnel including fund
managers, performance of other schemes launched by the mutual fund in the past, pending
litigations and penalties imposed, etc.

How to choose a scheme for investment from a number of schemes available?

As already mentioned, the investors must read the offer document of the mutual fund scheme
very carefully. They may also look into the past track record of performance of the scheme or
other schemes of the same mutual fund. They may also compare the performance with other
schemes having similar investment objectives. Though past performance of a scheme is not an
indicator of its future performance and good performance in the past may or may not be
sustained in the future, this is one of the important factors for making investment decision.
Incase of debt-oriented schemes, apart from looking into past returns, the investors should also
seethe quality of debt instruments, which is reflected in their rating. A scheme with lower rate of
return but having investments in better-rated instruments may be safer. Similarly, in equities
schemes also, investors may look for quality of portfolio. They may also seek advice of experts.

29
 How to fill up the application form of a mutual fund scheme?
An investor must mention clearly his name, address, number of units applied for and such other
information as required in the application form. He must give his bank account number so as to
avoid any fraudulent encashment of any cheque/draft issued by the mutual fund at a later date for
the purpose of dividend or repurchase. Any changes in the address, bank account number, etc at
a later date should be informed to the mutual fund immediately.

When will the investor get certificate or statement of account after investing in a mutual
fund?
Mutual funds are required to dispatch certificates or statements of accounts within six weeks
from the date of closure of the initial subscription of the scheme. In case of close-ended schemes,
the investors would get either a demat account statement or unit certificates as these are traded in
the stock exchanges. In case of open-ended schemes, a statement of account is issued by the
mutual fund within 30 days from the date of closure of initial public offer of the scheme. The
procedure of repurchase is mentioned in the offer document.

How long will it take for transfer of units after purchase from stock markets in case of
close ended schemes?
According to SEBI Regulations, transfer of units is required to be done within thirty days from
the date of lodgment of certificates with the mutual fund.
As a unit holder, how much time will it take to receive dividends / repurchase proceeds?
A mutual fund is required to dispatch to the unit holders the dividend warrants within 30 days of
the declaration of the dividend and the redemption or repurchase proceeds within 10 working
days from the date of redemption or repurchase request made by the unit holder. In case of
failures to despatch the redemption/repurchase proceeds within the stipulated time period, Asset
Management Company is liable to pay interest as specified by SEBI from time to
time (15% at present).

30
 Can a mutual fund change the nature of the scheme from the one specified in the offer
document?
Yes. However, no change in the nature or terms of the scheme, known as fundamental attributes
of the scheme e.g. structure, investment pattern, etc. can be carried out unless a written
communication is sent to each unit holder and an advertisement is given in one English daily
having nationwide circulation and in a newspaper published in the language of the region where
the head office of the mutual fund is situated. The unit holders have the right to exit the scheme
at the prevailing NAV without any exit load if they do not want to continue with the scheme. The
mutual funds are also required to follow similar procedure while converting the scheme form
close-ended to open-ended scheme and in case of change in sponsor.

How will an investor come to know about the changes, if any, which may occur in the
mutual fund?
There may be changes from time to time in a mutual fund. The mutual funds are required to
inform any material changes to their unit holders. Apart from it, many mutual funds send
quarterly newsletters to their investors. At present, offer documents are required to be revised
and updated at least once in two years. In the meantime, new investors are informed about the
material changes by way of addendum to the offer document till the time offer document is
revised and reprinted.

How to know the performance of a mutual fund scheme?

The performance of a scheme is reflected in its net asset value (NAV), which is disclosed on
daily basis in case of open-ended schemes and on weekly basis in case of close-ended schemes.
The NAVs of mutual funds are required to be published in newspapers. The NAVs are also
available on the web sites of mutual funds. All mutual funds are also required to put their NAVs
on the web site of Association of Mutual Funds in India (AMFI) www.amfiindia.com and thus
the investors can access NAVs of all mutual funds at one place The mutual funds are also
required to publish their performance in the form of half-yearly results, which also include their
returns/yields over a period of time i.e. last six months, 1 year, 3years, 5 years and since
inception of schemes. Investors can also look into other details like percentage of expenses of

31
total assets as these have an affect on the yield and other useful information in the same half-
yearly format.
The mutual funds are also required to send annual report or abridged annual report to the unit
holders at the end of the year. The financial newspapers on a weekly basis are publishing various
studies on mutual fund schemes including yields of different schemes. Apart from these, many
research agencies also publish research reports on performance of mutual funds including the
ranking of various schemes in terms of their performance. Investors should study these reports
and keep themselves informed about the performance of various schemes of different mutual
funds. Investors can compare the performance of their schemes with those of other mutual funds
under the same category. They can also compare the performance of equity-oriented schemes
with the benchmarks like BSE Sensitive Index, S&P CNX Nifty, etc. On the basis of
performance of the mutual funds, the investors should decide when to enter or exit from a mutual
fund scheme.

How to know where the mutual fund scheme has invested money mobilized from the
investors?
The mutual funds are required to disclose full portfolios of all of their schemes on half-yearly
basis, which are published in the newspapers. Some mutual funds send the portfolios to their unit
holders. The scheme portfolio shows investment made in each security i.e. equity, debentures,
money market instruments, government securities, etc. and their quantity, market value and % to
NAV. These portfolio statements also required to disclose illiquid securities in the portfolio,
investment made in rated and unrated debt securities, non-performing assets (NPAs), etc. Some
of the mutual funds send newsletters to the unit holders on quarterly basis, which also contain
portfolios of the schemes.

Is there any difference between investing in a mutual fund and in an initial public
offering (IPO) of a company?
Yes, there is a difference. IPOs of companies may open at lower or higher price than the issue
price depending on market sentiment and perception of investors. However, in the case of mutual
funds, the par value of the units may not rise or fall immediately after allotment. A mutual fund

32
scheme takes some time to make investment in securities. NAV of the scheme depends on the
value of securities in which the funds have been deployed.

If schemes in the same category of different mutual funds are available, should one
choose a scheme with lower NAV?
Some of the investors have the tendency to prefer a scheme that is available at ower NAV
compared to the one available at higher NAV. Sometimes, they prefer a new scheme, which is
issuing units at Rs. 10 whereas the existing schemes in the same category are available at much
higher NAVs. Investors may please note that in case of mutual funds schemes, lower or higher
NAVs of similar type schemes of different mutual funds have no relevance. On the other hand
,investors should choose a scheme based on its merit considering performance track record of the
mutual fund, service standards, professional management, etc. This is explained in an example
given below.
Suppose scheme A is available at a NAV of Rs.15 and another scheme B at Rs.90. Both schemes
are diversified equity oriented schemes. Investor has put Rs. 9,000 in each of the two schemes.
He would get 600 units (9000/15) in scheme A and 100 units (9000/90) in scheme B. Assuming
that the markets go up by 10 per cent and both the schemes perform equally good and it is
reflected in their NAVs. NAV of scheme A would go up to Rs. 16.50 and that of scheme B to
Rs.99. Thus, the market value of investments would be Rs. 9,900 (600* 16.50) in scheme A and
it would be the same amount of Rs. 9900 in scheme B (100*99). The investor would get the
same return of 10% on his investment in each of the schemes. Thus, lower or higher NAV of the
schemes and allotment of higher or lower number of units within the amount an investor is
willing to invest, should not be the factors for making investment decision. Likewise, if a new
equity oriented scheme is being offered at Rs.10 and an existing scheme is available for Rs.
90,should not be a factor for decision making by the investor. Similar is the case with income or
debt-oriented schemes. On the other hand, it is likely that the better-managed scheme with higher
NAV may give higher returns compared to a scheme, which is available at lower NAV but is not
managed efficiently. Similar is the case of fall in NAVs. Efficiently managed scheme at higher
NAV may not fall as much as inefficiently managed scheme with lower NAV. Therefore, the
investor should give more weightage to the professional management of a scheme instead of

33
lower NAV of any scheme. He may get much higher number of units at lower NAV, but the
scheme may not give higher returns if it is not managed efficiently.

How significant are fund costs while choosing a scheme?

The cost of investing through a mutual fund is not insignificant and deserves due consideration,
especially when it comes to fixed income funds. Management fees, annual expenses of the fund,
sales loads etc. can take away a significant portion of your returns. Please also carefully examine
the fee a fund charges for getting in and out of the fund.

Are the companies having names like mutual benefit the same as mutual funds schemes?
Investors should not assume some companies having the name "mutual benefit" as mutual funds.
These companies do not come under the purview of SEBI. On the other hand, mutual funds can
mobilize funds from the investors by launching schemes only after getting registered with SEBI
as mutual funds.

Is the higher net worth of the sponsor a guarantee for better returns?
In the offer document of any mutual fund scheme, financial performance including the net worth
of the sponsor for a period of three years is required to be given. The only purpose is that the
investors should know the track record of the company, which has sponsored the mutual fund.
However, higher net worth of the sponsor does not mean that the scheme would give better
returns or the sponsor would compensate in case the NAV falls.

Where can an investor look out for information on mutual funds?

Almost all the mutual funds have their own web sites. Investors can also access the NAVs, half
yearly results and portfolios of all mutual funds at the web site of Association of mutual funds in
India (AMFI) www.amfiindia.com. AMFI has also published useful literature for the investors.
Investors can log on to the web site of SEBI www.sebi.gov.in and go to "Mutual Funds" section
for information on SEBI regulations and guidelines, data on mutual funds, draft offer documents
filed by mutual funds, addresses of mutual funds, etc. Also, in the annual reports of SEBI
available on the web site, a lot of information on mutual funds is given. There are a number of
other web sites, which give a lot of information of various schemes of mutual funds including

34
yields over a period of time. Many newspapers also publish useful information on mutual funds
on daily and weekly basis. Investors may approach their agents and distributors to guide them in
this regard.

If mutual fund scheme is wound up, what happens to money invested?

In case of winding up of a scheme, the mutual funds pay a sum based on prevailing NAV after
adjustment of expenses. Unit holders are entitled to receive a report on winding up from the
mutual funds, which gives all necessary details.

How can the investors redress their complaints?

Investors would find the name of contact person in the offer document of the mutual fund
scheme that they may approach in case of any query, complaints or grievances. Trustees of a
mutual fund monitor the activities of the mutual fund. The names of the directors of Asset
Management Company and trustees are also given in the offer documents. Investors can also
approach SEBI for redressed of their complaints. On receipt of complaints, SEBI takes up the
matter with the concerned mutual fund and follows up with them till the matter is resolved.
Investors may send their complaints

35
MUTUAL FUND BENEFITS
An expert on your side:
When you invest in a mutual fund, the analysis and strategic thinking that goes into investing is
not your worry. That's what a fund manager does for you.
Limited risk:
Mutual funds are diversification in action and hence do not rely on the performance of a single
entity.
More for less:
Your money can probably afford just a handful of stocks, but by investing in just one fund, you
could get yourself a number of units across a spread of companies and industries!
Easy investing:
You can invest in a mutual fund with as little as Rs. 5,000. Salaried individuals also have the
option of investing a little every month in a SIP or Systematic Investment Plan.
Convenience:
You can invest directly with a fund house, or through your financial adviser, or even over the
Internet.
Quick access to your money:
Should you need your money at short notice, you can usually get it in four working days.
Transparency:
As an investor, you get updates on the value of your units, information on specific
investments made by the mutual fund and the fund manager's strategy and outlook.
Low transaction costs:
A mutual fund, by the sheer scale of its investments is able to carry out cost-effective brokerage
transactions.
Tax benefits:
Over the years, tax policies on mutual funds have been favourable to investors and continue tobe
so.

36
Investor protection:
A mutual fund in India is registered with The Securities and Exchange Board of India or SEBI,
which also monitors the operations of mutual funds to protect your interests.

Drawbacks of Mutual Funds

Mutual funds have their drawbacks and may not be for everyone:
No Guarantees: No investment is risk free. If the entire stock market declines in value,
the value of mutual fund shares will go down as well, no matter how balanced the
portfolio. Investors encounter fewer risks when they invest in mutual funds than when
they buy and sell stocks on their own. However, anyone who invests through a mutual
fund runs the risk of losing money.
Fees and commissions: All funds charge administrative fees to cover their day-to-day
expenses. Some funds also charge sales commissions or "loads" to compensate brokers,
financial consultants, or financial planners. Even if you don't use a broker or other
financial adviser, you will pay a sales commission if you buy shares in a Load Fund.
Taxes: During a typical year, most actively managed mutual funds sell anywhere from
20to 70 percent of the securities in their portfolios. If your fund makes a profit on its
sales, you will pay taxes on the income you receive, even if you reinvest the money you
made.
Management risk: When you invest in a mutual fund, you depend on the fund's manager
to make the right decisions regarding the fund's portfolio. If the manager does not
perform as well as you had hoped, you might not make as much money on your
investment as you expected. Of course, if you invest in Index Funds, you forego
management risk, because these funds do not employ managers

37
From an investors' viewpoint mutual funds have several advantages such as:
Professional management and research to select quality securities
Spreading risk over a larger quantity of stock whereas the investor has limited to buy
only a hand full of stocks. The investor is not putting all his eggs in one basket
Ability to add funds at set amounts and smaller quantities such as $100 per month
Ability to take advantage of the stock market which has generally out performed other
investment in the long run
Fund manager are able to buy securities in large quantities thus reducing brokerage fees
However there are some disadvantages with mutual funds such as:
The investor must rely on the integrity of the professional fund manager
Fund management fees may be unreasonable for the services rendered
The fund manager may not pass transaction savings to the investor
The fund manager is not liable for poor judgment when the investor's fund loses value
There may be too many transactions in the fund resulting in higher fee/cost to the
investor -This is sometimes call "Churn and Earn"
Prospectus and Annual report are hard to understand
Investor may feel a lost of control of his investment dollars
There may be restrictions on when and how an investor sells/redeems his mutual fund
shares

38
QUESTIONNAIRE

1. Where do you put your savings?

o Stock Market
o Govt. Securities
o Mutual Funds
o Banks
o Post Office.
o Real Estate
Other
Please specify_____________________________________________

The purpose of this question is to know about where people put their saving and in
which investment options they are more interested.
The analysis show that most of the people aware about the Banks but in current
situation they are also aware about the stock market and mutual funds.
So this point shows that investment related organization like ICICI WEB TRADE
LTD, has market potential to grow their business and influence to spectators about
the current market situation
.

39
1. How do you made your savings and investment plan.
o Risk Reduction
o Return potential
o Affordability
o well regulated
o Transparency
o Tax efficiency
o Easy Entry and Exit

The purpose of the question is to know about that how people made their investment plans .The
most of the people do not want to take more risk nut up to a
limit they are ready to take risk for return potential. So it is a great opportunity to stock market or
mutual funds organization to increase their customers just to influence by their performance and
they can increase their market potential

40
2. Does age factor affects the investment or savings policy.
(A)Yes
(B) No
(C) Cant say.

The purpose of this question is to know about the various investors mental position about the
investment strategy. Different age group people choose their
investment strategy by their age requirement. The analysis of this question shows that 78%
people say that yes Age factor effects to make a plan for investment.

41
3. What effects an investor to accept the investment policy of an
organization.
(A) Past Performance
(B) Current Economic Situation
(C)Government Approval
Others Please Specify________________

The purpose of the question is to know about the attributes of a broking agency
which is being analyze by investors before invest their money through that organization. The
result shows that the past performance of the organization and government approval is the two
most important factors who effects to make investment planning strategy before investment.

42
4. Should government establish an organization that will assure to people about return and
guide about risk?
(A) Yes
(B) No
(C) Cant say

The purpose of the question is to know about what are the reasons in India that
most of the people do not want to invest their money in stock market or mutual
funds rather banks. The feedback, which has been found by the recipient shows that the Indian
investor want that government will insure to people about the risk and return. So they are very
conscious about the government approval organization.

43
5. What are the common errors exist when investors select
their investment plan?
(A) Dont analyze record
(B) Deceived by brokers
(C) Patience
(D) Cant say.

44
6. How do you compare investment alternatives on key investment
attributes?
(A) Return
(B) Risk
(C) Future Expectation
(D) Past Record.

45
7. What attributes of an organization will help to investors to adopt their
policy?
(A) Glimpses
(B) Past Performances.
(C) Government approval
(D) Legitimate Statement
(E) Cant Say.

In current situation most of the people are being deceived by the various investment
organizations. So the question has been asked that which is the most
important factor by which investors are being get mental assured for investment.
The result which came to analyze this question by recipient shows that government
approval organization is their first choice for investment

46
8. Which aspect will attract to investors and speculators to invest their money
in stock market or mutual fund.
(A) Less Risk
(B) More Return
(C) Less Flexibility
(D) Transparent
(E) All of the above

The purpose of this question is that what are the most influence factor to an investor to accept to
an organization. or an investment options .The market survey shows that most of the people want
that an organization should be less risky, more profitable means there return should be based on
return. They should be transparent in their work and less flexibility.

47
9. What is the age group who has been targeted to know about the
response of the questionnaire?
AGE:
o <25
o 25-45
o 46-60
o ABOVE 61
Demographic Chart

This question shows that the age group of recipient who has been targeted to know about there
sponse of the questionnaire. It shows that question has been asked by the all category of people,
but majority of questions has been asked by the two category25-45 and 46-60. Because they are
more aware about the current investment situation

48
10. What type of occupational person are found interested in share
market?
o OCCUPATION:
o SERVICE
o BUSINESS
o PROFESSIONAL
o SELF EMPLOYED
o HOUSE WIFE

The targeted recipient were house wives self employed professional service men and the persons
who are doing their business. Every kind of investors has been targeted because to know about
the mentality of attacking and defensive investor like wise women of India are defensive
investors they dont want to take more risk. relatively men. Business men are professional are
want to invest in mutual fund because their risk taking ability and return potential desire.

49
11.Chart based on income group:
INCOME:
o 0-100000
o 100001-300000
o 300001-500000
o 500001 and above

50
MARKET STRUCTURE
Market structure analysis or segmentation seeks to identify and profile subgroups f a given
population .POPULAS has conducted numerous Segmentation studies for a wide variety of
clients involving a wide range of Products of services and institutions. POPULAS has been on
the cutting edge of development of sophisticated techniques for the analysis of market
segmentation data and graphic presentation of the analytical results.

Cluster analysis
Cluster analysis is a set of techniques for separating objects into mutually exclusive groups such
that the groups are relatively homogeneous .It is concerned with classification and is part of the
field of the numerical taxonomy. A problem faced by many user of cluster analysis is that every
cluster analysis always producers clusters where there is underlying structure in the data or not.
given the natural tendency to read meaning into even the most random of patterns that fact
that a solution seems reasonable is no guarantee that the result would be reproducible with a
different sample or a different set of variables.

RISK PRFOFILE OF INVESTORS

The main purpose of this project to check the risk profile of investors under some circumstances
which is risk and return, sex and age, Income and less income and other factors. Here some
important strategy of investors is given. The investors is classified in two category first is
attacking customers and second are defensive customers. Especially in India those persons who
have high income accept attacking investment and the person those are lower income group are
defensive investors. Women of India are defensive investors. They prefer less risk relatively high
return. Similarly demographically those persons who live in villages or small towns are
conscious about risk they preferred less flexibility more transparency before investment. Thus
age group people have also their strategy of investment .Generally the age group pf25-45 want to
invest their money in stock market but after 45 to 60 people have desire to gain more return but
they do not want to take direct risk so they preferred investment mutual fund. Investors above 60
preferred bank investment or monthly investment in post office because they want availability as
well as safety. They are aware about the risk.

51
IN DEFENSE OF DEFENSIVE INVESTORS
The investors are generally categorized in two types. Most of the Indian in Respect of Indian
investment strategy, are defensive investors. Since most of Indians belong from the lower or
middle class income group So they are very cautious about the investment plan. Generally they
do not want to invest their money in stock market or mutual fund because they have no idea
about these types of scheme or the impression of these regulating body is not impressive. To
consider as many instances one thing found that is common that women are defensive investors.
This is essentially true for India. In the west there are many studies on behavioral finance show
casing varied investment habits among women across classes. Defensive investors would get low
returns and if invested on almost risk free assets such as bank deposits governments bank
deposits, Government Bonds etc are more less assured or the capital, in times of uncertainty. For
Instance a short tern bank fixed deposit offers a minuscule 6% regular return but protects your
capabilities. On the other hand equity related Instrument might offer you huge returns, but there
is no consistency. In uncertain times even your capital could be wiped off.

52
CONCLUSION

The project is ADITYA BIRLA MUTUAL FUND AND FEW COMPETITORS So to analyze the
marketing research some important findings have been obtained about the Indian investors and
Indian investment organization. Most of the Indians are aware about high risk and high return.
So it is necessary that government will encourage to investors to invest in Market. Large census
are not well aware of this financial instruments, they only known with the term mutual & share
are something which exit in the market. Traditional person take it as a speculation . Lack of
awareness is declining the market of such financial product so from my point of view proper
mechanism should be adopted to make learn this census about the product and make him able to
understand the market of such product so that they also penetrate. Some important findings are
that the women are defensive investors and small investors want to invest their money in banks
or post offices. But after research it has found that the current economic situation and
government role people are attracting towards market investment. Investment related
organization should be transparent and they should be less flexible. Government should guide to
people about the investment Organization and investment options .Because people are very
conscious about the government approval organization. Because they are ready to take the risk if
government is ready to prevent or sustain them. ADITYA BIRLA MONEY LTD. has a great
opportunity to increase their market potential especially in this market situation. Most of the
branded broking agencies are coped by security exchange board of India due to their illegal
works and scams related to IPOs .ADITYA BIRLA MONEY LTD has a unique brand name
who assures to people about the transparent work and obtaining their belief.

53
RECOMMENDATION
Since the project is related to assess the risk profile of investor and how to increase the market
potential of ADITYA BIRLA MONEY LTD. So every precise aspect like risk taking,
influencing factors of investment Organization government role, age, sex income factors have
been analyzed.
Since the problem is related to investors profiles. Market potential of ADITYA
BIRLAMONEY LTD therefore some Recommendations are being putted for improvement.
Investors (especially lower and middle income group should invest some percent of their
income in stock market or mutual fund.
Investment related organization should be transparent and they should guide to seethe
mentality of investors like attacking investors or defensive investors
Government should monitor the stock market closely and they should provide some guide
to investors about investment

54
BIBLIOGRAPHY
BOOKS
PHILIP KOTLER
CR KOTHARI
JOURNAL
BUISINESS WORLD
BUSINESS TODAY
OUTLOOK
NEWS PAPER
TIMES OF INDIA
BUSINESS TIMES
ECONOMIC TIMES

WEBSITES
www. Aditya Birlamoney.com
www.Aditya BirlaGroup.com
www.msnsearch.com
www.icicidirect.com
www.indiabulls.com
www.sharekhan.com
www.mutualfund.com

55