Organization study

Executive summary
Geojit financial services LTD. Is India’s leading financial service brokerage company
headquartered in Cochin, Kerala. It offers value added product and services from
equities and derivatives to mutual funds, life insurance, general insurance and portfolio
management services.

The project report will be majorly focused on the mutual fund, behavior in the market
and the Impact on returns caused by the mutual fund strategies of the companies in the
market usually the term mutual fund means’ pooling of money from many investors such
as individual and institutions and investing the stock market , securities and shares of
the companies which will creates a portfolio to the market as well the investors.

And the factors which are influencing on the mutual fund growth and declaim in the
market with the cause and effect diagram showing the relationship of the market
position with the mutual fund in market.

And the impact of mutual on the indian investment markets such as BSE, NSE,NEFTY
etc this study would be going to clears the picture of mutual fund and its role ,effect on
the Indian markets and investors with the help of this analytical view study it will become
easy make decision on mutual fund investment wither they are beneficial or not to the
society and people for todays environment.
 Organization study

Geojit Financial Services Ltd.

Type Public

BSE: 532285
Traded as
NSE: GEOJITFSL

Industry Financial Services

Founded 1987

Headquarters Kochi, Kerala, India

Key people C J George

Products Investment Management Solutions

Website www.geojit.com
 Organization study

 About
, servicing over [9] 913,000 clients.[10]
The network of Geojit covers more than 300 cities in states in India such as Andhra
Pradesh, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, Jammu and
Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, New
Delhi, Orissa, Punjab, Rajasthan, Tamil Nadu & Pondicherry, Telangana, Uttar
Pradesh, Uttaranchal and West Bengal.
The company has B2B partnerships with a number banks such as Axis Bank (the
partnership received IBA recognition 2007 & 2008), Federal Bank, Andhra
Bank, Oriental Bank of Commerce, SVC Bank (Shamrao Vithal Co-operative
Bank), Corporation Bank, South Indian Bank and IndusInd Bank

 History

C J George, founder and CEO of the company set up M/s C.J George and Co. in 1987
with Ranajit Kanjilal as partner.[14] However, a formal partnership was formed in 1988
after Kanjilal acquired membership in the Cochin Stock Exchange. The firm was then
renamed as Geojit and Co. The name 'Geojit' was coined by conjoining the first and last
three words in the names of the partners who set up the organization - C J George and
Ranajit Kanjilal[
In 1992, Kanjilal, left the organization and Geojit became sole proprietorship.[16]
In 1993, the company opened its first branch in Muvattupuzha in Ernakulam and
followed it up with another branch in Trichur in Kerala
 Organization study

 Growth and Expansion

In 1994, Geojit became a public limited company with a new name - Geojit Securities
Ltd. It was the first a brokerage firm that became a corporate in Kochi and one of the
firsts in India. In 1995, Kerala State Industrial Development Corporation (KSIDC)
became a co-promoter of Geojit by acquiring 22% stake in the company. This is the only
instance of a government entity participating in the equity of a stock broking company. A
P Kurian who retired from UTI as its Executive Trustee joined the board of the company
as an independent director and Chairman.
In October 1995, Geojit went public by issuing 9,50,000 shares of Rs.10 each to
gain access to more capital. Shares of the company were listed in Cochin, Chennai
and Delhi exchanges. The IPO was oversubscribed by 15 times. In the same year,
Geojit became a member of the NSE and the opened its first terminal at Cochin.
From 1996 onwards, the company focused on expanding its presence as well as
products and services. Geojit started depository services in 1997, offering customers
Demat facility.
In 1999, the company took membership in the Bombay Stock Exchange (BSE) and
its shares were listed in the BSE in 2000 In February 2000, Geojit launched online
trading. In 2003, the company ventured into commodity trading with the launch of
rubber trading. In 2004, commodity trading in cardamom was launched. In 2005,
Rakesh Jhunjhunwala, a renowned Indian Equity Investor, took a significant stake in
the company and joined the Board of Directors of the company.
In 2005, Geojit launches Geojit Technologies, another sister concern with an aim to
develop state-of-the-art technologies for the financial services field. Geojit Credits, a
subsidiary of Geojit Financial Services Ltd., was also launched after registering with
the Reserve Bank of India as a Non-Banking Financial Company (NBFC). In the
same year, Geojit shares were also listed on National Stock Exchange of India
Limited.
In 2012, Geojit launched Qualified Foreign Investors (QFI) Investment service.
In 2018, the company launched Funds Genie, a Mutual Funds advisory and
investment platform
 Organization study

 References
^ "City Union Bank inks MOU with Geojit BNP Paribas". NDTV. 25 November
2011. Retrieved 20 May 2018.

^ "Federal Bank Launches Online Trading in Association With

Geojit". Outlook India. 7 January 2009. Retrieved 20 May 2018.

^ "Geojit BNP Paribas Deploys Brocade Switching Infrastructure". First Post.

2 February 2017. Retrieved 20 May 2018.

^ "'We have a calibrated strategy to focus on capital market products'". The

Hindu (15 November 2015). Retrieved 16 May 2018.

^ Jump up to:a b "Taking Stock". The Hindu. 26 April 2013. Retrieved 16

May 2018.

^ "Geojit Financial Services Ltd". Business Standard India. Retrieved 2018-

05-15.

^ "Geojit net jumps 39%; to re-enter commodity

broking". www.businesstoday.in. Retrieved 2018-05-15.

^ "Geojit plans to double customer base to 2 mn in 5 years - Times of

India". The Times of India. Retrieved 2018-05-15.

^ "Assets Under Custody and Management" (PDF). Business Standard.

Retrieved 2018-05-15.

^ "Geojit net jumps 39%; to re-enter commodity broking". Retrieved 2018-05-

15.

^ "Andhra Bank teams up with Geojit for 3-in-1 online platform".

Retrieved 2018-05-16.

^ "Federal Bank launches online trading in association with Geojit".

Retrieved 2018-05-16.

^ "Corporation Bank has signed an MoU with Geojit BNP Paribas to offer a 3-
in-1 integrated account". Retrieved 2018-05-16.

^ Nair, Radhika P. (2012-11-02). "How CJ George of Geojit BNP Paribas

transformed a small company into a big brokerage firm". The Economic
Times. Retrieved 2018-05-15.
Organization study
 Organization study

 About Geojit
A LEADING RETAIL FINANCIAL SERVICES PROVIDER

Geojit is a leading retail financial services company in India with a growing presence
in the Middle East. The company rides on its rich experience in the capital market to
offer its clients a wide portfolio of savings and investment solutions. The gamut of
value-added products and services offered ranges from Equities and Derivatives to
Mutual Funds, Life & General Insurance and third party Fixed Deposits. The needs
of over 10,00,000 clients are met via multichannel services - a countrywide network
of over 480 offices, phone service, dedicated Customer Care Centre and the
Internet.

Geojit has membership in, and is listed on, the National Stock Exchange (NSE) and
the Bombay Stock Exchange (BSE). In 2007, global banking major BNP Paribas
joined the company’s other shareholders - Mr. C. J. George, Founder and Managing
Director, Kerala State Industrial Development Corporation (KSIDC) and Mr. Rakesh
Jhunjhunwala – when it bought a stake and became the single largest shareholder.

The company also has a strategic presence in the Middle East region in the form of
joint ventures and partnerships. Barjeel Geojit Securities, its joint venture with the Al
Saud Group, is headquartered in Dubai, in the United Arab Emirates, and has
branches in Abu Dhabi, Al Ain, and Sharjah. Aloula Geojit Capital Company, the joint
venture with the Al Johar Group in Saudi Arabia is headquartered in Riyadh with a
branch in Dammam. BBK Geojit Securities KSC, located in Kuwait, is a joint venture
with Bank of Bahrain, Kuwait and JZA. QBG Geojit Financial Services LLC is the
joint venture with QBG and National Securities Company and is based in Oman. In
addition, the company has a business partnership with Bank of Bahrain and Kuwait.
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EXPANDING RANGE OF ONLINE PRODUCTS AND SERVICES

A trendsetter and pioneer in the capital markets, Geojit has proven expertise in
providing online services. In the year 2000, the company became the first
stockbroker in the country to offer Internet Trading by integrating the first Bank
Payment Gateway. In 2010, it became the first company in India to launch trading
through mobile devices. In 2013, the company again broke new ground, by being the
first to launch India’s first social media (Facebook) trading application suite.
Currently, clients can trade online in equities, derivatives, currency futures, mutual
funds and IPOs, and select from multiple bank payment gateways for online transfer
of funds. Strategic B2B agreements with South Indian Bank, Corporation Bank and
Federal Bank enable the respective bank’s clients to open integrated 3-in-1 accounts
to seamlessly trade via our sophisticated Online Trading platform.

Note
Certified financial advisors help clients to arrive at the right financial solution to meet
their individual needs. The wide range of products and services on offer includes:
Equities, Derivatives, Currency Futures, Custody Accounts, Mutual Funds, Life
Insurance & General Insurance, e-Insurance, IPOs, Portfolio Management Services,
Property Services, Margin Trading and Loans against Shares.

A GROWING FOOTPRINT
With a presence in almost all the major states of India, the company’s network of
offices presently covers 19 States and 2 Union Territories: Andhra Pradesh, Goa,
Gujarat, Haryana, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh,
Maharashtra, New Delhi, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh,
Uttarakhand, Jharkhand, Telangana and West Bengal, Pondicherry and Chandigarh.
 Organization study

Head office cochin, Kerala

Organization study
 Organization study

 Why Geojit ?
1

30 YEARS’ EXPERIENCE IN THE INDIAN CAPITAL MARKET

Geojit has over over 30 years of in-depth experience in the Indian Capital Market.
The company also has more than 10,00,000 clients, a network of over 480 offices
and manages assets worth over Rs 40,000 crore in Assets Under Management and
Custody (as on 31 March 2019). This is a true reflection of the trust reposed in our
expertise, transparency and our cutting edge technology solutions.

A PIONEER IN ONLINE TRADING SINCE THE YEAR 2000

Geojit pioneered the simple concept of providing individuals with the facility to trade
online way back in February 2000. The company has since enjoyed a first mover
advantage in online trading. As a creative innovator, Geojit uses cutting-edge
technology in online trading to meet client requirements such as customized online
trading platforms among other services.

STRONG SHAREHOLDERS
Geojit is backed by strong shareholders, such as, largest shareholder - global
banking major BNP Paribas, and other major shareholders such as Mr. C.J.George,
KSIDC (Kerala State Industrial Development Corporation) and Mr. Rakesh
Jhunjhunwala.

4
WIDE RANGE OF PRODUCTS
Geojit offers a wide range of trading and investment products and solutions. Certified
financial advisors help clients to arrive at the right financial solution to meet their
individual financial goals.
5

ATTRACTIVE BROKERAGE TARIFFS

We provide excellent value for money by offering low online brokerage charges.

0.03% for Equity intra-day trades

0.30% for Equity delivery trades
Rs.75 per lot for options
0.03% for futures including Minifty
Rs.10 - Rs.15 range of Currency Brokerage, according to contracts.
 Organization study

LEARN THE CRAFT

You too can develop your trading skills by availing of the effective guidance by our
research department. We offer-
Daily mails delivered to our client’s mailbox on market conditions and
recommendations
Technical analysis of BSE 200 Index scrips
Free monthly investment magazine
Services of professionally qualified executives at all offices across India.
Our strong research ideas have been instrumental in converting our clients
into successful traders.

MULTICHANNEL SERVICE- INTERNET, PHONE, BRANCH TRADING

Trade the way that you want to by selecting from multiple channel options- Internet,
Phone or Branch.

FIRST MOVER ADVANTAGE

Geojit has the distinction of being a pioneer in the industry:
1st to launch internet trading in the year 2000.
1st to launch integrated internet trading system for cash and derivative
segments in 2002.
1st Indian stock broking company to commence domestic retail broking
operations in any foreign country.
1st in the industry to have a global player offering its name thereby creating
Geojit.
1st to launch exclusive branches for women in 2005.
1st to launch trading through mobile phones in 2010.
1st to launch trading through Facebook application in 2013.

WIDE NETWORK
We have a wide network of over 480 offices with industry certified executives and a
dedicated Call Centre to provide you with quality services.

10

WIDE RANGE OF FUND OPTIONS

Through Geojit you can choose to buy from over 14,209 Mutual Fund schemes
offered by 41+ Asset Management companies. But based on our in-depth research
and analysis we recommend only 56 schemes
Organization study
 Organization study

 Milestones

Product innovation backed by a high level of domain specific knowledge and state-of-the-art
technology has helped Geojit set many milestones including numerous industry firsts.

1986

C. J. George became member of Cochin Stock Exchange

1987

M/s C. J. George and Co. was set up at Ravipuram, Cochin

1988

Company was renamed at M/s Geojit & Co.

1994

Becomes a Public Limited Company named Geojit Securities Ltd.

Kerala State Industrial Development Corporation Ltd. (KSIDC) acquires 24 percent
equity stake.

1995

Membership in National Stock Exchange (NSE).

Public Issue.

1997

Depository Participant (DP) under National Securities Depository Limited.

Launch of Portfolio Management Services with SEBI registration.

1999

Membership in Bombay Stock Exchange (BSE).

 Organization study

2000

BSE Listing.
1st broking firm in India to offer online trading facility.
Commences Derivative Trading with NSE.
Integrates the 1st Bank Payment Gateway in the country for Internet Trading.

2001

Becomes India's first DP to launch depository transactions through Internet.

Establishes Joint Venture in the UAE to serve NRI customers.Geojit Securities signs
MoU with Barjeel Shares and Bonds LLC of the Al Saud Group UAE. The venture
named Barjeel Geojit Securities is headquartered in Dubai and has branches in Abu
Dhabi, Al Ain, and Sharjah.

2002

1st in India to launch an integrated internet trading system for Cash & Derivatives segments.

2003

Geojit Commodities Limited, wholly owned subsidiary, launched Online Futures

Trading in agri-commodities, precious metals and in energy futures on multiple
commodity exchanges.
National launch of online futures trading in Rubber, Pepper, Gold, Wheat and Rice.
Company renamed as Geojit Financial Services Ltd.

2004

National launch of online futures trading in Cardamom.

2005

NSE Listing.
Geojit Technologies, a subsidiary of Geojit was established for developing state of
the art technologies for the financial services field.
Geojit Credits, a subsidiary, registers with RBI as a Non Banking Financial Company
(NBFC).
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A women’s only branch was inaugurated in Cochin – the first of its kind in the field
of financial services.National launch of online futures trading in Coffee.
2006

Charter member of the Financial Planning Standards Board of India.

Geojit becomes the first Indian stock broking company to enter into Saudi Arabia and
commence capital market operations by setting up Aloula Geojit Capital Co., a joint
venture broking firm in Saudi Arabia with Al Johar Group. Headquartered in Riyadh,
it has a branch in Dammam.

2007

BNP Paribas takes a stake in the company’s equity, making it the single largest shareholder.

2008

Establishes BNP Paribas Securities India (P) Ltd. – a Joint Venture with BNP Paribas
S.A. for Institutional Brokerage.
1st brokerage to offer full Direct Market Access execution in India for institutional
clients.

2009

Launch of Property Services division.

Launch of online trading in Currency Derivatives.
Consequent to BNP Paribas becoming the largest stakeholder in Geojit, company is
renamed as Geojit BNP Paribas Financial Services Ltd.

2010

Launch of FLIP(Financial Investment Platform), a new advanced online investment

platform.
Launch of state of the art Mobile Trading platform to empower clients to trade from
anywhere, even while on the move through the innovative application FLIP- ME.

2011

Geojit and JZ Associates LLC, Kuwait signed a JV deal with Bank of Bahrain and
Kuwait to form BBK Geojit Securities KSC. The agreement was signed by
 Organization study

Abdulkarim Bucheery, CEO of BBK, Mr. C. J. George and Mr. Jassem Hassan Zainal
of JZ Associates LLC
Geojit joined hands with Qurum Business Group and National Securities Company in
Oman to form QBG Geojit Securities LLC, Oman.
2012

Qualified Foreign Investors (QFI) Investment services launched.

2013

Launches India’s first application to trade through facebook.

2014

Head Office at Kochi, Kerala received the prestigious Leadership in Energy and
Environment Design (LEED) India ‘GOLD’ rating under New Buildings category. It is the
first and the only building in Corporation of Cochin limits to be awarded this distinction.
2015

A new advanced trading platform branded Selfie was launched.

2017

Company renamed as Geojit Financial Services Ltd. BNP Paribas, the French multinational
bank remains a prominent shareholder along with C J George, the company's founder and
Managing Director, Kerala State Industrial Development Corporation (KSIDC) and Rakesh
Jhunjhunwala, renowned investor.
 Organization study

 Organization structure

Board Of Directors

Mr. Ramanathan Bupathy

Chairman
is a Practicing Chartered Accountant for the last 39 years. He is a
Director of Jubliant Industries Limited, Jubliant Agri and Consumer
Products Limited and Geojit Technologies Private Limited. Mr.
Ramanathan Bupathy, a Graduate in Commerce and a Fellow Member
of the Institute of Chartered Accountants of India is a Former
President of Institute of Chartered Accountants of India and on the
Board of Geojit since January 2006.

Mr. C. J. George
Managing Director and Promoter
The Company was founded by Mr. C. J.George in 1987. He has over 31 years of professional
experience in the securities market. He has presented numerous papers related to the industry
in seminars at national and international fora. He frequently contributes articles to financial
publications and serves as a guest faculty at reputed management institutes. Mr George, has a
Masters Degree in Commerce and is a Certified Financial Planner.
 Organization study

Mr. Mahesh Vyas

Non Executive Independent Director
is the Managing Director and CEO of the Centre for Monitoring Indian
Economy Pvt. Ltd (CMIE). CMIE is India's leading business
information company. It provides economic and business information,
analysis and forecasts. He joined CMIE in 1980. During his over 35
years at the CMIE, he has steered the company through multiple
transitions. He is the chief architect of CMIE's databases, database-
products and services. His current business engagement is in
integrating CMIE database services into clients' business processes.
And, his current research engagement is in conducting large complex
household surveys to generate fast-frequency socio-economic
indicators. He is on the Board of Geojit since July 2003.

Mr. Radhakrishnan Nair

Non Executive Independent Director
Mr. Radhakrishnan Nair has four decades of experience in financial sector. He started his
career as Probationary Officer with Corporation Bank in 1976 and rose up to the level of
General Manager in 2005. He was Executive Director at Securities Exchange Board of India
(SEBI), Mumbai during the period from 2005 to 2010 and a Member (Finance and
Investments) of Insurance Regulatory and Development Authority (IRDA), Hyderabad from
2010 to 2015. Mr. Radhakrishnan Nair is also an Independent Director on the Board of ICICI
Prudential Life Insurance Company Ltd, ICICI Securities Primary Dealership Ltd and ICICI
Bank Ltd among other Companies
 Organization study

Mr. Punnoose George

Non Executive Director
is an industrialist of repute with interests in manufacturing industries, plantations and
educational institutions. He is the Executive Director of Kottukulam Group - Kottayam,
Executive Chairman - SAINTGITS Group of Institutions, Director and Partner of M/s.
Concrete Products & Construction Company, Madras Group of Companies and Director of
M/s. Youth Empowerment Skills Foundation. Mr. Punnoose George, a Graduate in
Engineering and an LLM holder, is on the Board of Geojit since April 1995.

DR. SHARMILA MARY JOSEPH IAS

Non-Executive Director (Nominee)
Dr. Sharmila Mary Joseph IAS is the Managing Director of Kerala State Industrial
Development Corporation Ltd (KSIDC) and Secretary (Industries) Government of Kerala.
She is an Officer of the Indian Administrative Service (Kerala Cadre), 1997 Batch . A
Medical Doctor by academic training Dr Sharmila has done Masters in Public Administration
at Maxwell School of Policy & Public Affairs Syracuse University, USA. In her career
spanning more than two decades, she had held many important portfolios at the State
Government and Central Government earlier. In the State Government she had worked as
Secretary (Expenditure) Government of Kerala, District Collector of Kottayam and Wayanad
districts, Director of Social Welfare and various other capacities. At the Central Government
she was the Director in the Prime Minister's Office and as Member Secretary of the National
Pharmaceutical Pricing Authority.
 Organization study

Mohana Nair
Additional Director (Independent)
Ms Mohana Nair has 35 years of experience as an advocate practising in the High Court of
Mumbai and is also an advisor to several corporate banks and financial institutions. Her areas
of specialization are Corporate and Commercial Law, Intellectual Property and Litigation,
and other civil matters. She is currently on the Boards of Ugam Solutions Private Ltd, AGR
Knowledge Services Pvt Ltd, StratBiz Consulting Pvt Ltd (Avalon Consulting) and is the
Managing Partner at JMB Partners.

Mr A Balakrishnan
Whole Time Director
Mr A Balakrishnan was the Managing Director of Geojit Technologies (P) Ltd. He joined
Geojit in 1998 and has been instrumental in spearheading the transformation of Geojit into a
technology-driven retail financial services intermediary that has pioneered many innovations
over the years to enhance client's trading experience. In 2009, he was awarded the Kerala
Management Association’s “Manager of the Year” Award and in 2011 and 2013 was
conferred the CIO100 Award by IDG India’s CIO Magazine. Currently, he is on the Boards
of Geojit Investment Services Ltd. and Director of Barjeel Geojit Securities LLC, Dubai.
 Organization study

Mr Satish Menon
Whole Time Director
Mr Satish Menon holds a Bachelor of Commerce degree from Bombay University and is a
qualified Associate Cost and Works Accountant (AICWA) and a Certified Financial Planner
(CFP). He joined Geojit in 1999 and has been the Executive Director of the Company since
2011. At Geojit, he has been a key player in driving the company’s business and spearheaded
several initiatives. He is a Director of BBK Geojit Securities, Kuwait and Geojit Investment
Services Ltd. In 2016, he was awarded "Manager of the Year" by Kerala Management
Association (KMA).

Mr. Sanjeev Kumar Rajan

Chief Financial Officer

Mr. Sanjeev Kumar Rajan is a Chartered Accountant with over 22 years of

experience. He was associated with Bajaj Allianz Life Insurance Co. Ltd., Pune as
Senior Vice President (Finance and Accounts). Before Bajaj Allianz Life Insurance
Co. Ltd., he was working with LIC of India in Indore and Mumbai.
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Mr. Kamal Mampilly

Chief of Human Resources

Mr. Kamal Mampilly joined Geojit Financial Services Ltd in 2018 and has been the
Chief of Human Resources from March 2019. Prior to joining with Geojit, he was
associated with Axis Bank Ltd., as their Vice President – Human Resources. In
2004, he was awarded "The Young Manager of the Year" by Kerala Management
Association (KMA). Mr Kamal Mampilly holds a Master’s Degree in Human
Resources Management from Rajagiri College of Social Sciences
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.
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CSR Policy
1.

Introduction Right from inception Geojit Financial Services Ltd. has been carrying out its
business in a socially responsible manner. From carrying out extensive campaigns on
financial literacy on savings and investments to giving contributions to philanthropic and
charitable causes such as support for pursuing higher education, for treatment of chronic
diseases etc, the Company has been doing its bit to promote the welfare of the society. In
2005, a more focused approach was adopted in supporting social causes and since then the
emphasis shifted to undertaking more long term and sustainable projects.These policies and
procedures are framed to streamline the CSR activities of Geojit Financial Services Ltd and
its subsidiaries (if any of the subsidiaries satisfy the criteria defined by the Companies Act
2013)tobe in line with the Companies Act 2013 and the Companies(Corporate Social
Responsibility) Rules 2014.

2.

Applicability: As a Company that has a net profit of Rs. 5 crores or more consistently for the
last many years, the CSR Policy as envisaged under the Act is currently applicable to Geojit
Financial Services Ltd (GFSL) and its subsidiary, Geojit Technologies (P) Ltd. (GTPL).

3.

Objective: To convey to all the stakeholders of the Company the CSR focus areas adopted by
the Company and how it propose to utilize its funds to achieve results in those areas.

4.

The Company shall be committed to:

1) Comply with the statutory CSR obligations

2) Strive to carry out CSR activities that will bring direct benefits to the marginalized,
disadvantaged, poor and deprived sections of the community

3) Identify CSR activities that will bring about sustainable development

4) Encourage employees to be active participants in the CSR initiatives of the Company

5) Reach out to the larger public

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6) Support/Complement Government programs/initiatives ensuring that there is no

duplication

7) Carry out its business in a socially responsible manner and not resort to any unfair
business practices.

8) Not carry over surplus fromCSR activities or treat it as part of the business profits of the
Company

5.

CSR Committee Composition The CSR committee shall consist of minimum 3 (Three)
Directors of which at least 1 (one) director would be an independent director as per the
requirements of Companies Act,2013 and the rules framed thereunder.

6.

Responsibilities of the CSR Committee: 1) Formulate and recommend to the Board, a

Corporate Social Responsibility Policy which shall indicate the broad activities to be
undertaken by the company asspecified in Schedule VII of the Act but not limited to the
Projects and Programs specified therein 2) Recommend the specific CSR initiatives to be
adopted by the Company and the amount of expenditure to be budgeted for the activities
3) Monitor the CSR Policy of the company, its implementation and expenditures periodically
4) Report to the Board the reasons for not spending the amount budgeted for CSR 5)
Provide to the Board a responsibility statement that the implementation and monitoring of
CSR Policy, is in compliance with the CSR Objectives and Policy of the company.

7.

CSR Activities: The Company shall undertake such CSR activities as stated in this CSR policy.
In compliance with Rule 4(1) of the Companies Corporate Social Responsibility) Rules 2014,
these activities shall be undertaken by the Company asprojects or programs or activities
(eithernew or ongoing)and will exclude activities undertaken in the normal course of its
business. The activities undertaken shall be in line with the activities specified in Schedule
VII of the Companies Act 2013.The Company intends to focus upon education,health,
environment and social inclusion.

The CSR activities to be undertaken shall be approved by the respective CSR Committees.

1) Education: Education is considered to be the backbone of any society. It brings about

powerful social change and is the key to building a society that can develop in a sustainable
 Organization study

manner. In our society, education is still unaffordable for many families and children miss
out on this crucial developmental tool due tothis. It is to bridge this gap,even in a small way,
that the Company wants to focus on Education while implementing its CSR activities. Geojit
will work along with registered NGOs as well as Educational Institutions in this regard. While
on the one side the Companywill look towards facilitating basic education for children who
can’t afford it, itwould also focus on other educational activities that help develop special
skill sets that enable individuals to be equipped to take up employment in specialized fields.
In this respect thelongterm goal wouldbe to enable development /training of individuals in
being equipped to be productivelyemployed in the financial services sector.Education also
includes imparting training to individuals in civic sense, personality development,
humanitarian values etc which result in the all round development of the individual and
create resourceful and responsible citizens. Projects that focus on such areas will also be
considered eligible to be included under CSR of the Company.

2) Health: The Company aims at focusing part of its CSR activities to providing health care to
those living in and around the location of its offices and are affected by chronic diseases.A
chronic conditionis a human healthcondition or diseasethat is persistent or otherwise long-
lasting in its effects. Common chronic diseases include cancer, Alzheimer’s, heart disease,
HIV/AIDS etc. Changing lifestyles and food habits have increased the prevalence of these
diseases. A report by Price Waterhouse Coopers predictsthat the proportion of deaths from
such maladies nationwide (inIndia) will skyrocket from 53% in 2005 to nearly 67% in 2020.
For obtaining medical care in such cases people have to often shell out vast amounts
towardscost of medicines, hospitalization/surgeries etc and this may be way beyond the
means of the poor and deprived strata of our society. To make matters worse, alarge
segmentof people are not covered by medical insurance. Many times such expenses drive
families to revert to distress financingwhich impoverishes them and ultimately drives them
to poverty. To make a difference in this context, at leastto the society in its neighbourhood,
the Company will providehealth care supportto such persons. The Company believes in the
adage that a healthysociety is a happier and more productive society and a key driver of
economic growth.

3) Environment: When economy prospers and cash flow increases, the pace of
urbanization, industrialization and use of resources, too, witness a steady rise and India is
no exception. This has been evident as issues like environmental pollution, water scarcity
and rising temperatures have caught national attention, calling for immediate action to
adopt a more sustainable economic model. It is therefore a critical need to protect our flora
and fauna and reduce the harm that are done to our ecosystem. In the last few decades we
are witnessing a steady extinction of natural resources. Conservation of biological diversity
 Organization study

is of paramount importance for the survival of mankind, plants and animals. Though it is
everyone’s responsibility to take care of the environment, Corporates with the resources
available to them can undertake this responsibility in a highly organized manner. The
Company has felt this as an acute need and plans to support environmental protection
activities such as maintenance of public parks. Open Parks with recreational facilities that
are accessible to persons of all ages and for those with disabilities provide health,
enjoyment and well-being and provide a sense of public pride and cohesion. Parks are
proven to improve water quality, improve the quality of the air we breathe, provide
vegetative buffers to development, produce habitat for wildlife, and provide a place for
children and families to connect with nature and recreate outdoors together. It will serve as
a place for games, special events such as arts, music, and holiday festivals.

4) Social Inclusion: Social Inclusion has become a bit of a buzz-phrase in society today. It is
defined as the process of improving the ability, opportunity and dignity of the marginalized
and disadvantaged such as the differently abled people and senior citizens. As per the
Ministry of Statistics, 8.6% of the population in India are senior citizens above the age of 60
and 2.21 % are differently abled. Even though there are various social welfare schemes and
programs, still most of population are not integrated into the society. In this context,
Corporates can play a significant role for the upliftment of this population either directly or
indirectly. Considering this, the Company intends to support the institutions engaged in
their upliftment and also through NGOs, so that they can lead a better quality of life. 8.
Territory for CSR Activities: The Company shall utilize the amount earmarked for CSR
activities only in India and the Company shall give preference to the local areas in and
around its Head Office and also in States where it has large operations. 9. Implementation
1) Mode of Implementation: The Company shall execute its CSR activities directly, through
registered NGO’s (with at least 3 years track record), through Government agencies and/or
in collaboration with its subsidiary companies. 2) CSR Management Committee: The
Managing Director shall constitute a CSR Management Committee for identifying CSR
projects and coordinating the CSR activities approved by the Board level CSR Committee.
The Committee shall be headed by the Managing Director and shall meet once a month to
sreview and planthe activities. The CSR Management Committee shall be mainly responsible
for : a) Identifying projects within the broad themes of promoting education, supporting
health, protecting environment and Social Inclusion b) Monitoring all CSR activities closely.
c) Liaising with NGO’s and Government. d) Reporting the outcomes transparently and
authentically to the CSR Committee e) Plan for long term, sustainable CSR initiatives. f)
Support the CSR audit process 10. Audit of Expenditure: The Company shall audit the CSR
expenditure in line with the activities or programs specified in this Policy on a quarterly
basis and the report shall be presented to the CSR Committee. 11. Monitoring and
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Reporting The CSR Committee shall monitor the CSR expenditure on a half yearly basis and
report to the Board of Directors on half yearly basis. Additionally, the Directors’ Report of
the Company shall include an annual report on CSR containing the particulars in the
prescribed format 12. Display of the CSR Policy in the website of the Company The Board of
Directors shall approve the CSR policy, after taking recommendations of the CSR committee.
The contents of the policy shall then be displayed on the Company’s website. 13. Validity
and authority for modification/ amendments This CSR Policy approved by the Board of the
Company is valid from 1stApril, 2014 and will be in force till such time it is modified or
amended by the Board of Directors on recommendation of the CSR Committee Revised in
May 2018
 Organization study

What's New?

Geojit announces new brand identity

Geojit, one of the leading financial services intermediaries, today announced the
formal change of its name and unveiled a new logo as part of a rebranding exercise
that also coincides with the completion of its 30 years of operations

Geojit Launches Online Financial Planning

The user-friendly platform is called Geojit Online Financial Planning and allows a
client to do comprehensive financial planning including retirement planning on a
single platform without engaging the services of an advisor. This product, developed
by Geojit Technologies Limited, can be accessed by visiting www.geojit.com

SELFIE: Our next generation trading & investment platform.

Selfie is a next generation trading platform which combines several new web
technologies to meet your emerging needs
 Organization study

What's New?

BTST registration is now available online

BTST is a product which is offered to clients to take extra benefit of the market
movement by taking positions with a margin and liquidating them before settlement
is due. Further, the client may hold the position for 7 calendar days with required
margin.

Electronic Clearance Service

Did you know that our free of charge ECS allows you to carryout multiple
transactions including applying for new SIPs in a paperless manner.

Real Time Market News

Did you know that our RTMN facility allows you to follow business and economic
news stories, top predictive trades based on sentiment analysis, fever charts with
real time price movement etc.
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what's New?

Intraday Trading in Equities & Derivatives with Reduced Margins

Did you know that Geojit BNPP offers Intraday trading in Equities & derivatives with
reduced margins

Online Customers to Place Orders Even After Market Hours

Did you know that Geojit BNPP permits Online customers to place orders even after
market hours

Margins Based on DP Holdings

Geojit BNPP offers margins based on DP holdings

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What's New?

Flip Now Available Across Different Paltforms

Geojit BNPP’s Flip trading terminal comes in Thick, Web & Mobile versions

Online Mutual Funds & IPO Subscriptions

Did you know that Geojit BNP Paribas offers Online mutual Funds & IPO
subscriptions

Free Credit Facility at No Extra Cost

Did you know that Geojit BNP Paribas offers a 7 day free credit facility at no extra
cost?
 Organization study

Competitors to the Geojit

1. Karvy stock brokimg ltd

2. Angel stok ltd
3. Deshpande foundation ltd
4. Anand ratthi stocks and service ltd
5. Sharekhan financial services ltd
6. Zeroda
7. Iifl ltd
8. Axis financial service ltd
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Introduction to mutual fund

A mutual fund is a professionally managed investment fund that pools money from
many investors to purchase securities. These investors may be retail or institutional in
nature.
Mutual funds have advantages and disadvantages compared to direct investing in
individual securities. The primary advantages of mutual funds are that they provide
economies of scale, a higher level of diversification, they provide liquidity, and they are
managed by professional investors. On the negative side, investors in a mutual fund
must pay various fees and expenses.
Primary structures of mutual funds include open end funds, unit investment trusts,
and closed-end funds. Exchange-traded funds (ETFs) are open-end funds or unit
investment trusts that trade on an exchange. Some close- ended funds also resemble
exchange traded funds as they are traded on stock exchanges to improve their liquidity.
Mutual funds are also classified by their principal investments as money market funds,
bond or fixed income funds, stock or equity funds, hybrid funds or other. Funds may
also be categorized as index funds, which are passively managed funds that match the
performance of an index, or actively managed funds. Hedge funds are not mutual funds;
hedge funds cannot be sold to the general public as they require huge investments.
They are more risky than mutual funds and are subject to different government
regulations.
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Evolution of mutual fund

The first modern investment funds (the precursor of today's mutual funds) were
established in the Dutch Republic. In response to the financial crisis of 1772–1773,
Amsterdam-based businessman Abraham (or Adriaan) van Ketwich formed a trust
named Eendragt Maakt Magt ("unity creates strength"). His aim was to provide small
investors with an opportunity to diversify.

Mutual funds were introduced to the United States in the 1890s. Early U.S. funds were
generally closed-end funds with a fixed number of shares that often traded at prices
above the portfolio net asset value. The first open-end mutual fund with redeemable
shares was established on March 21, 1924 as the Massachusetts Investors Trust (it is
still in existence today and is now managed by MFS Investment Management).

In the United States, closed-end funds remained more popular than open-end funds
throughout the 1920s. In 1929, open-end funds accounted for only 5% of the industry's
$27 billion in total assets.

After the Wall Street Crash of 1929, the United States Congress passed a series of acts
regulating the securities markets in general and mutual funds in particular.

 The Securities Act of 1933 requires that all investments sold to the public, including
mutual funds, be registered with the SEC and that they provide prospective
investors with a prospectus that discloses essential facts about the investment.

 The Securities and Exchange Act of 1934 requires that issuers of securities,
including mutual funds, report regularly to their investors. This act also created the
Securities and Exchange Commission, which is the principal regulator of mutual
funds.

 The Revenue Act of 1936 established guidelines for the taxation of mutual funds.

 The Investment Company Act of 1940 established rules specifically governing

mutual funds.
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 These new regulations encouraged the development of open-end mutual funds (as
opposed to closed-end funds).

Growth in the U.S. mutual fund industry remained limited until the 1950s, when
confidence in the stock market returned. By 1970, there were approximately 360 funds
with $48 billion in assets.

The introduction of money market funds in the high interest rate environment of the late
1970s boosted industry growth dramatically. The first retail index fund, First Index
Investment Trust, was formed in 1976 by The Vanguard Group, headed by John Bogle;
it is now called the "Vanguard 500 Index Fund" and is one of the world's largest mutual
funds. Fund industry growth continued into the 1980s and 1990s.

The first modern investment funds (the precursor of today's mutual funds) were established in
the Dutch Republic. In response to the financial crisis of 1772–1773, Amsterdam-based
businessman Abraham (or Adriaan) van Ketwich formed a trust named Eendragt Maakt Magt
("unity creates strength"). His aim was to provide small investors with an opportunity to
diversify.[1][2]

Mutual funds were introduced to the United States in the 1890s. Early U.S. funds were
generally closed-end funds with a fixed number of shares that often traded at prices above the
portfolio net asset value. The first open-end mutual fund with redeemable shares was
established on March 21, 1924 as the Massachusetts Investors Trust (it is still in existence today
and is now managed by MFS Investment Management).

In the United States, closed-end funds remained more popular than open-end funds
throughout the 1920s. In 1929, open-end funds accounted for only 5% of the industry's $27
billion in total assets.

After the Wall Street Crash of 1929, the United States Congress passed a series of acts
regulating the securities markets in general and mutual funds in particular.
 Organization study

The Securities Act of 1933 requires that all investments sold to the public, including mutual
funds, be registered with the SEC and that they provide prospective investors with a prospectus
that discloses essential facts about the investment.

The Securities and Exchange Act of 1934 requires that issuers of securities, including mutual
funds, report regularly to their investors. This act also created the Securities and Exchange
Commission, which is the principal regulator of mutual funds.

The Revenue Act of 1936 established guidelines for the taxation of mutual funds.

The Investment Company Act of 1940 established rules specifically governing mutual funds.

These new regulations encouraged the development of open-end mutual funds (as opposed to
closed-end funds).

Growth in the U.S. mutual fund industry remained limited until the 1950s, when confidence in
the stock market returned. By 1970, there were approximately 360 funds with $48 billion in
assets.[3]

The introduction of money market funds in the high interest rate environment of the late 1970s
boosted industry growth dramatically. The first retail index fund, First Index Investment Trust,
was formed in 1976 by The Vanguard Group, headed by John Bogle; it is now called the
"Vanguard 500 Index Fund" and is one of the world's largest mutual funds. Fund industry
growth continued into the 1980s and 1990s.
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According to Pozen and Hamacher, growth was the result of three factors:

1. A bull market for both stocks and bonds,

2. New product introductions (including funds based on municipal bonds, various
industry sectors, international funds, and target date funds) and
3. Wider distribution of fund shares, including through employee-directed retirement
accounts such as 401(k), other defined contribution plans and individual
retirement accounts(IRAs.) Among the new distribution channels were retirement
plans. Mutual funds are now the preferred investment option in certain types of
fast-growing retirement plans, specifically in 401(k), other defined contribution
plans and in individual retirement accounts (IRAs), all of which surged in
popularity in the 1980s.

In 2003, the mutual fund industry was involved in a scandal involving unequal treatment
of fund shareholders. Some fund management companies allowed favored investors to
engage in late trading, which is illegal, or market timing, which is a practice prohibited
by fund policy. The scandal was initially discovered by former New York Attorney
General Eliot Spitzer and led to a significant increase in regulation. In a study about
German mutual funds Gomolka (2007) found statistical evidence of illegal time zone
arbitrage in trading of German mutual funds [5]. Though reported to
regulators BaFin never commented on these results.
Total mutual fund assets fell in 2008 as a result of the financial crisis of 2007–2008.
According to Pozen and Hamacher, growth was the result of three factors:

A bull market for both stocks and bonds,

New product introductions (including funds based on municipal bonds, various industry sectors,
international funds, and target date funds) and

Wider distribution of fund shares, including through employee-directed retirement accounts

such as 401(k), other defined contribution plans and individual retirement accounts (IRAs.)
Among the new distribution channels were retirement plans. Mutual funds are now the
preferred investment option in certain types of fast-growing retirement plans, specifically in
401(k), other defined contribution plans and in individual retirement accounts (IRAs), all of
which surged in popularity in the 1980s.[4]

In 2003, the mutual fund industry was involved in a scandal involving unequal treatment of
fund shareholders. Some fund management companies allowed favored investors to engage in
late trading, which is illegal, or market timing, which is a practice prohibited by fund policy.
 Organization study

Mutual funds today

At the end of 2016, mutual fund assets worldwide were $40.4 trillion, according to the
Investment Company Institute.[6] The countries with the largest mutual fund industries are:

United States: $18.9 trillion

Luxembourg: $3.9 trillion

Ireland: $2.2 trillion

Germany: $1.9 trillion

France: $1.9 trillion

Australia: $1.6 trillion

United Kingdom: $1.5 trillion

Japan: $1.5 trillion

China: $1.3 trillion

Brazil: $1.1 trillion

In the United States, mutual funds play an important role in U.S. household finances. At the end
of 2016, 22% of household financial assets were held in mutual funds. Their role in retirement
savings was even more significant, since mutual funds accounted for roughly half of the assets
in individual retirement accounts, 401(k)s and other similar retirement plans.[7] In total, mutual
funds are large investors in stocks and bonds.

Luxembourg and Ireland are the primary jurisdictions for the registration of UCITS funds. These
funds may be sold throughout the European Union and in other countries that have adopted
mutual recognition regimes.
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Advantages and disadvantages to investors

Mutual funds have advantages and disadvantages compared to investing directly in individual
securities:

Advantages

Increased diversification: A fund diversifies holding many securities. This diversification

decreases risk.

Daily liquidity: Shareholders of open-end funds and unit investment trusts may sell their
holdings back to the fund at regular intervals at a price equal to the net asset value of the
fund's holdings. Most funds allow investors to redeem in this way at the close of every trading
day.

Professional investment management: Open-and closed-end funds hire portfolio managers to

supervise the fund's investments.

Ability to participate in investments that may be available only to larger investors. For example,
individual investors often find it difficult to invest directly in foreign markets.

Service and convenience: Funds often provide services such as check writing.

Government oversight: Mutual funds are regulated by a governmental body.

Transparency and ease of comparison: All mutual funds are required to report the same
information to investors, which makes them easier to compare to each other.[8]

Disadvantages

Mutual funds have disadvantages as well, which include:

Fees

Less control over timing of recognition of gains

Less predictable income

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Regulation and operation

United States

In the United States, the principal laws governing mutual funds are:

The Securities Act of 1933 requires that all investments sold to the public, including
mutual funds, be registered with the SEC and that they provide potential investors with
a prospectus that discloses essential facts about the investment.

The Securities and Exchange Act of 1934 requires that issuers of securities, including
mutual funds, report regularly to their investors; this act also created the Securities and
Exchange Commission, which is the principal regulator of mutual funds.

The Revenue Act of 1936 established guidelines for the taxation of mutual funds.
Mutual funds are not taxed on their income and profits if they comply with certain
requirements under the U.S. Internal Revenue Code; instead, the taxable income is
passed through to the investors in the fund. Funds are required by the IRS to diversify
their investments, limit ownership of voting securities, distribute most of their income
(dividends, interest, and capital gains net of losses) to their investors annually, and earn
most of the income by investing in securities and currencies. [10] The characterization of a
fund's income is unchanged when it is paid to shareholders. For example, when a
mutual fund distributes dividend income to its shareholders, fund investors will report
the distribution as dividend income on their tax return. As a result, mutual funds are
often called "pass-through" vehicles, because they simply pass on income and related
tax liabilities to their investors.

The Investment Company Act of 1940 establishes rules specifically governing mutual
funds. The focus of this Act is on disclosure to the investing public of information about
the fund and its investment objectives, as well as on investment company structure and
operations.[11]
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The Investment Advisers Act of 1940 establishes rules governing the investment
advisers. With certain exceptions, this Act requires that firms or sole practitioners
compensated for advising others about securities investments must register with the
SEC and conform to regulations designed to protect investors.[12]

The National Securities Markets Improvement Act of 1996 gave rulemaking authority to
the federal government, preempting state regulators. However, states continue to have
authority to investigate and prosecute fraud involving mutual funds.
Open-end and closed-end funds are overseen by a board of directors, if organized as a
corporation, or by a board of trustees, if organized as a trust. The Board must ensure
that the fund is managed in the interests of the fund's investors. The board hires the
fund manager and other service providers to the fund.
The sponsor or fund management company, often referred to as the fund
manager, trades (buys and sells) the fund's investments in accordance with the fund's
investment objective. Funds that are managed by the same company under the same
brand are known as a fund family or fund complex. A fund manager must be
a registered investment adviser.
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European Union
In the European Union, funds are governed by laws and regulations established by their
home country. However, the European Union has established a mutual recognition
regime that allows funds regulated in one country to be sold in all other countries in the
European Union, but only if they comply with certain requirements. The directive
establishing this regime is the Undertakings for Collective Investment in Transferable
Securities Directive 2009, and funds that comply with its requirements are known as
UCITS funds.

Canada
Regulation of mutual funds in Canada is primarily governed by National Instrument 81-
102 "Mutual Funds", which is implemented separately in each province or territory. The
Canadian Securities Administrator works to harmonize regulation across Canada.[13]

Hong Kong
In the Hong Kong market mutual funds are regulated by two authorities:

 The Securities and Futures Commission (SFC) develops rules that apply to all
mutual funds marketed in Hong Kong.[14]
 The Mandatory Provident Funds Schemes Authority (MPFA) rules apply only to
mutual funds that are marketed for use in the retirement accounts of Hong Kong
residents. The MPFA rules are generally more restrictive than the SFC rules. [15]
Taiwan
In Taiwan, mutual funds are regulated by the Financial Supervisory Commission (FSC).
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Fund structures

There are three primary structures of mutual funds: open-end funds, unit investment
trusts, and closed-end funds. Exchange-traded funds (ETFs) are open-end funds or unit
investment trusts that trade on an exchange.

Open-end funds
Open-end mutual funds must be willing to buy back ("redeem") their shares from their
investors at the net asset value (NAV) computed that day based upon the prices of the
securities owned by the fund. In the United States, open-end funds must be willing to
buy back shares at the end of every business day. In other jurisdictions, open-funds
may only be required to buy back shares at longer intervals. For example, UCITS funds
in Europe are only required to accept redemptions twice each month (though most
UCITS accept redemptions daily).

Most open-end funds also sell shares to the public every business day; these shares
are priced at NAV.
Most mutual funds are open-end funds. In the United States at the end of 2016, there
were 8,066 open-end mutual funds with combined assets of $16.3 trillion, accounting for
86% of the U.S. industry.
Closed-end funds

Closed-end funds generally issue shares to the public only once, when they are created
through an initial public offering. Their shares are then listed for trading on a stock
exchange. Investors who want to sell their shares must sell their shares to another
investor in the market; they cannot sell their shares back to the fund. The price that
investors receive for their shares may be significantly different from NAV; it may be at a
"premium" to NAV (i.e., higher than NAV) or, more commonly, at a "discount" to NAV
(i.e., lower than NAV).

In the United States, at the end of 2016, there were 530 closed-end mutual funds with
combined assets of $300 billion, accounting for 1% of the U.S. industry.
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Unit investment trusts

Unit investment trusts (UITs) are issued to the public only once when they are created.
UITs generally have a limited life span, established at creation. Investors can redeem
shares directly with the fund at any time (similar to an open-end fund) or wait to redeem
them upon the trust's termination. Less commonly, they can sell their shares in the open
market.

Unlike other types of mutual funds, unit investment trusts do not have a professional
investment manager. Their portfolio of securities is established at the creation of the
UIT.

In the United States, at the end of 2016, there were 5,103 UITs with combined assets of
less than $0.1 trillion.

Exchange-traded funds

Exchange-traded funds (ETFs) are structured as open-end investment companies or

UITs. ETFs combine characteristics of both closed-end funds and open-end funds.
ETFs are traded throughout the day on a stock exchange. An arbitrage mechanism is
used to keep the trading price close to net asset value of the ETF holdings.
In the United States, at the end of 2016, there were 1,716 ETFs in the United States
with combined assets of $2.5 trillion, accounting for 13% of the U.S. industry.[7]
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Classification of funds by types of underlying investments

Mutual funds are normally classified by their principal investments, as described in the
prospectus and investment objective. The four main categories of funds are money
market funds, bond or fixed income funds, stock or equity funds, and hybrid funds.
Within these categories, funds may be sub-classified by investment objective,
investment approach or specific focus.

The types of securities that a particular fund may invest in are set forth in the
fund's prospectus, a legal document which describes the fund's investment objective,
investment approach and permitted investments. The investment objective describes
the type of income that the fund seeks. For example, a capital appreciation fund
generally looks to earn most of its returns from increases in the prices of the securities it
holds, rather than from dividend or interest income. The investment approach describes
the criteria that the fund manager uses to select investments for the fund.
Bond, stock, and hybrid funds may be classified as either index (or passively-managed)
funds or actively managed funds.

Money market funds

Money market funds invest in money market instruments, which are fixed income
securities with a very short time to maturity and high credit quality. Investors often use
money market funds as a substitute for bank savings accounts, though money market
funds are not insured by the government, unlike bank savings accounts.

In the United States, money market funds sold to retail investors and those investing in
government securities may maintain a stable net asset value of $1 per share, when they
comply with certain conditions. Money market funds sold to institutional investors that
invest in non-government securities must compute a net asset value based on the value
of the securities held in the funds.

In the United States, at the end of 2016, assets in money market funds were $2.7
trillion, representing 14% of the industry.
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Bond funds
Bond funds invest in fixed income or debt securities. Bond funds can be sub-classified
according to:

 The specific types of bonds owned (such as high-yield or junk bonds, investment-
grade corporate bonds, government bonds or municipal bonds)
 The maturity of the bonds held (i.e., short-, intermediate- or long-term)
 The country of issuance of the bonds (such as U.S., emerging market or global)
 The tax treatment of the interest received (taxable or tax-exempt)
In the United States, at the end of 2016, assets in bond funds were $4.1 trillion,
representing 22% of the industry.

Stock funds

Stock or equity funds invest in common stocks. Stock funds may focus on a particular
area of the stock market, such as

 Stocks from only a certain industry

 Stocks from a specified country or region
 Stocks of companies experiencing strong growth
 Stocks that the portfolio managers deem to be a good value relative to the value of
the company's business
 Stocks paying high dividends that provide income
 Stocks within a certain market capitalization range

In the United States, at the end of 2016, assets in Stock funds were $10.6 trillion,
representing 56% of the industry.

Hybrid funds
Hybrid funds invest in both bonds and stocks or in convertible securities. Balanced
funds, asset allocation funds, target date or target risk funds, and lifecycle or lifestyle
funds are all types of hybrid funds.
Hybrid funds may be structured as funds of funds, meaning that they invest by buying
shares in other mutual funds that invest in securities.

Other funds
Funds may invest in commodities or other investments too.
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Expenses

Investors in a mutual fund pay the fund's expenses. Some of these expenses reduce
the value of an investor's account; others are paid by the fund and reduce net asset
value.
These expenses fall into five categories:
Management fee

The management fee is paid by the fund to the Management Company or sponsor that
organizes the fund, provides the portfolio management or investment advisory services
and normally lends its brand to the fund. The fund manager may also provide other
administrative services. The management fee often has breakpoints, which means that
it declines as assets (in either the specific fund or in the fund family as a whole)
increase. The fund's board reviews the management fee annually. Fund shareholders
must vote on any proposed increase, but the fund manager or sponsor can agree to
waive some or all of the management fee in order to lower the fund's expense ratio.
Index funds generally charge a lower management fee than actively-managed funds.

Distribution charges
Distribution charges pay for marketing, distribution of the fund's shares as well as
services to investors. There are three types of distribution charges.

 Front-end load or sales charge. A front-end load or sales charge is

a commission paid to a broker by a mutual fund when shares are purchased. It is
expressed as a percentage of the total amount invested or the "public offering price",
which equals the net asset value plus the front-end load per share. The front-end
load often declines as the amount invested increases, through breakpoints. The
front-end load is paid by the investor; it is deducted from the amount invested.
 Back-end load. Some funds have a back-end load, which is paid by the investor
when shares are redeemed. If the back-end load declines the longer the investor
holds shares, it is called a contingent deferred sales charges (CDSC). Like the front-
end load, the back-end load is paid by the investor; it is deducted from the
redemption proceeds.
 Distribution and services fee. Some funds charge an annual fee to compensate the
distributor of fund shares for providing ongoing services to fund shareholders. In the
United States, this fee is sometimes called a 12b-1 fee, after the SEC rule
authorizing it. The distribution and services fee is paid by the fund and reduces net
asset value.
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Distribution charges generally vary for each share class.

Securities transaction fees incurred by the fund

A mutual fund pays expenses related to buying or selling the securities in its portfolio.
These expenses may include brokerage commissions. These costs are normally
positively correlated with turnover.

Shareholder transaction fees

Shareholders may be required to pay fees for certain transactions, such as buying or
selling shares of the fund. For example, a fund may charge a flat fee for maintaining an
individual retirement account for an investor. Some funds charge redemption fees when
an investor sells fund shares shortly after buying them (usually defined as within 30, 60
or 90 days of purchase). Redemption fees are computed as a percentage of the sale
amount. Shareholder transaction fees are not part of the expense ratio.\

Fund services charges

A mutual fund may pay for other services including:

 Board of directors or trustees fees and expenses

 Custody fee: paid to a custodian bank for holding the fund's portfolio in safekeeping
and collecting income owed on the securities
 Fund administration fee: for overseeing all administrative affairs such as preparing
financial statements and shareholder reports, SEC filings, monitoring compliance,
computing total returns and other performance information, preparing/filing tax
returns and all expenses of maintaining compliance with state blue sky laws
 Fund accounting fee: for performing investment or securities accounting services
and computing the net asset value (usually every day the New York Stock
Exchange is open)
 Professional services fees: legal and auditing fees
 Registration fees: paid to the SEC and state securities regulators
 Shareholder communications expenses: printing and mailing required documents to
shareholders such as shareholder reports and prospectuses
 Transfer agent service fees and expenses: for keeping shareholder records,
providing statements and tax forms to investors and providing telephone, internet
and or other investor support and servicing
 Other/miscellaneous fees
The fund manager or sponsor may agree to subsidize some of these charges.
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Expense ratio
The expense ratio equals recurring fees and expenses charged to the fund during the
year divided by average net assets. The management fee and fund services charges
are ordinarily included in the expense ratio. Front-end and back-end loads, securities
transaction fees and shareholder transaction fees are normally excluded.

To facilitate comparisons of expenses, regulators generally require that funds use the
same formula to compute the expense ratio and publish the results.

No-load fund
In the United States, a fund that calls itself "no-load" cannot charge a front-end load or
back-end load under any circumstances and cannot charge a distribution and services
fee greater than 0.25% of fund assets.

Controversy regarding fees and expenses

Critics of the fund industry argue that fund expenses are too high. They believe that the
market for mutual funds is not competitive and that there are many hidden fees, so that
it is difficult for investors to reduce the fees that they pay. They argue that the most
effective way for investors to raise the returns they earn from mutual funds is to invest in
funds with low expense ratios.

Fund managers counter that fees are determined by a highly competitive market and,
therefore, reflect the value that investors attribute to the service provided. They also
note that fees are clearly disclosed.
 Organization study

Mutual funds in India

The first introduction of a mutual fund in India occurred in 1963, when the Government
of India launched Unit Trust of India (UTI).[1] UTI enjoyed a monopoly in the Indian
mutual fund market until 1987, when a host of other government-controlled Indian
financial companies established their own funds, including State Bank of India, Canara
Bank and by Punjab National Bank.

Contents

1 Mutual funds are an under-tapped market in India

2 Distribution

3 Servicing

4 Average assets under management

5 Mutual Fund Acquisitions

6 References

Mutual funds are an under-tapped market in India

Despite being available in the market[2] less than 10% of Indian households have
invested in mutual funds.[citation needed] A recent report on Mutual Fund Investments in India
published by research and analytics firm, Boston Analytics, suggests investors are
holding back from putting their money into mutual funds due to their perceived high risk
and a lack of information on how mutual funds work.[3] There are 46 Mutual Funds as of
June 2013.[4]

The primary reason for not investing appears to be correlated with city size. Among
respondents with a high savings rate, close to 40% of those who live in metros and Tier
I cities considered such investments to be very risky, whereas 33% of those in Tier II
cities said they did not know how or where to invest in such assets.[citation needed]
 Organization study

Servicing
Larger Indian Mutual Fund Industry has benefited from outsourcing the activity of
servicing their investors to two of the leading Registrar and Transfer Agents (RTAs) in
India namely CAMS and Karvy. While CAMS commands close to 65% of the Assets
servicing, rest is with Karvy. Franklin Templeton Mutual Fund services its investors
through its own in-house RTA set up.
Both the RTAs have vibrant network of their local offices which enable the Mutual Fund
Investors to transact locally. These touch points (or) Customer Service Centers (CSCs), provide
a wide range of servicing including, financial transaction acceptance & processing, non financial
changes, KYC fulfillment formalities, nomination registration, transmission of units apart from
providing statement of accounts etc.

Average assets under management[edit]

Assets under management (AUM) is a financial term denoting the market value of all the funds
being managed by a financial institution (a mutual fund, hedge fund, private equity firm, venture
capital firm, or brokerage house) on behalf of its clients, investors, partners, depositors, etc.
The average assets under management of all mutual funds in India for the quarter Dec 2015 to
Mar 2016 (in ₹ Lakh) is given below:[5]

Total QAAUM AUM Prev QAAUM Inc/Dec (₹

Mutual Fund Name Percentage
Schemes (₹ Lakh.) (₹ Lakh.) Lakh.)

Axis Asset Management

263 3776454.37 3456348.88 320105 9%
Company

Baroda Pioneer Asset

111 965630.33 925542.12 40132 4%
Management Company

Birla Sun Life Asset

806 13678510.7 13684493.34 5312 0%
Management Company

BNP Paribas Asset

114 509706.79 500795.21 9209 2%
Management Company
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Total QAAUM AUM Prev QAAUM Inc/Dec (₹

Mutual Fund Name Percentage
Schemes (₹ Lakh.) (₹ Lakh.) Lakh.)

BOI AXA Asset

76 238501.41 242767.91 2887 1%
Management Company

Canara Robeco Asset

142 804326.86 751779.86 52627 7%
Management Company

Pramerica Investment
8 27698 17194 10504 61%
Management

DHFL Pramerica Asset

491 2598683.24 216345 -80979 -37%
Management Company

DSP Asset Management

398 4015131.25 3918267.17 96865 2%
Company

Edelweiss Asset
70 167774.29 163236.28 4538 3%
Management Company

Escorts Asset
60 28559.18 29222.27 -663 -2%
Management Company

Franklin Templeton
Asset Management 200 6784076.49 7172216.54 -384257 -5%
Company

Goldman Sachs Asset

18 610139.99 685179.35 -75039 -11%
Management Company
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Total QAAUM AUM Prev QAAUM Inc/Dec (₹

Mutual Fund Name Percentage
Schemes (₹ Lakh.) (₹ Lakh.) Lakh.)

HDFC Asset
1173 17608456.44 17866622.24 -256390 -1%
Management Company

HSBC Global Asset

155 790382.19 837762.82 -47151 -6%
Management Company

ICICI Prudential Asset

1529 17596397.6 17223699 390751 2%
Management Company

IDBI Asset Management

92 689266.37 756428.17 -67162 -9%
Company

IDFC Asset Management

453 5228379.46 5486421.83 -249600 -5%
Company

IIFCL Asset Management

1 35797.56 34293.89 1504 4%
Asset

IIFL Asset Management

18 48543.76 42203.84 6340 15%
Company

IL & FS Infra Asset

12 92296.34 90029.5 2267 3%
Management Company

Indiabulls Asset
56 528955.04 491675.45 37279 8%
Management Company
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Total QAAUM AUM Prev QAAUM Inc/Dec (₹

Mutual Fund Name Percentage
Schemes (₹ Lakh.) (₹ Lakh.) Lakh.)

JM Financial Asset
179 1616090.42 1586776.74 29313 2%
Management

Kotak Mahindra Asset

431 5873108.27 5513383.02 362464 7%
Management Company

L&T Asset Management

246 2594480.1 2505850.82 89990 4%
Company

LIC Nomura Mutual Fund

Asset Management 176 1315562.4 1238408.04 92942 8%
Company

Mirae Asset
55 313272.14 280239.04 33101 12%
Management Company

Motilal Oswal Asset

31 468921.13 455222.64 14103 3%
Management Company

Peerless Asset
57 98524.1 102441.7 -3917 -4%
Management Company

PPFAS Asset
1 61357.1 62931.88 -1575 -3%
Management Company

Principal Asset
123 528106.02 587875.66 -59770 -10%
Management Company
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Total QAAUM AUM Prev QAAUM Inc/Dec (₹

Mutual Fund Name Percentage
Schemes (₹ Lakh.) (₹ Lakh.) Lakh.)

Quantum Asset
15 66093.04 65531.63 561 1%
Management Company

Reliance Asset
1015 15936949.34 15787817.36 152561 1%
Management Company

Religare Global Asset

267 1959617.91 1988459.31 -28622 -1%
Management Company

Sahara Asset
68 9929.16 11002.32 -758 -7%
Management Company

SBI Asset Management

652 10732737.36 10058453.69 672760 7%
Company

Shriram Asset
4 3716.98 3711.53 5 0%
Management Company

Sundaram Asset
479 2366370.94 2187696.57 185302 8%
Management Company

Tata Asset Management

324 3186223.17 3155590.09 26752 1%
Company

Taurus Asset
65 394858.04 350334.19 44524 13%
Management Company
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Total QAAUM AUM Prev QAAUM Inc/Dec (₹

Mutual Fund Name Percentage
Schemes (₹ Lakh.) (₹ Lakh.) Lakh.)

Union KBC Asset

60 290228.21 273213.25 17015 6%
Management Company

UTI Asset Management

1220 10630921.82 10612903.52 16124 0%
Company

132170477.1
Gross 11856 135912187.2

Mutual Fund Acquisitions[edit]

Seller Acquired By Year

Pioneer ITI MF Franklin Templeton 2002

Zurich India AMC HDFC MF 2003

Alliance Capital MF Birla Sunlife 2005

Standard Chartered IDFC 2008

AIG Global Investment Group MF PineBridge MF 2011

Benchmark Mutual Fund Goldman Sachs 2011

Fidelity L&T Finance 2012

 Organization study

Seller Acquired By Year

Morgan Stanley's MF HDFC MF 2013

PineBridge MF Kotak MF 2014

ING Mutual Fund Birla Sunlife 2014

Daiwa AMC SBI MF 2013

Goldman Sachs Reliance MF 2015

Deutsche Pramerica 2015

2016
JP Morgan Edelweiss