Professional Documents
Culture Documents
By By Other
Schemes
Structure Investment
Objectiv
Open Close Tax
ended ended Interval Special
Scheme Scheme Scheme Saving Scheme
Sche
Sector
Index
Specie
Scheme
Sche
More abruptly, Mutual fund schemes may be explained as under:-
By Structure:
Open-ended Funds
An open-end fund is one that is available for subscription all
through the year. These do not have a fixed maturity. Investors can
conveniently buy and sell units at Net Asset Value (‘‘NAV’’) related
prices. The key feature of open-end schemes is liquidity.
Closed-ended Funds
A Closed-end fund has a stipulated maturity period which generally
ranging from 3 to 15 years. The und is open for subscription only during a
specified period. Investors can invest in the scheme at the time of the initial
public issue and thereafter they can buy or sell the units of the scheme on
the stock exchanges where they 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 repurchase at NAV related
prices. SEBI Regulations stipulate that at least one of the two exit routes is
provided I investor.
Interval Funds
Interval funds combine the features of open-ended and close-ended
schemes. They are open for sale or redemption during pre-determined
intervals at NAV related prices.
By Investment Objective :
Growth Funds
The aim of growth funds is to provide capital appreciation over the
medium to long-term. Such schemes normally invest a majority of their
corpus in equities. It has been proven that returns from stocks, have
outperformed most other kind of investments helf over the long term.
Growth schemes are ideal for investors having a long-term outlook seeking
growth over a period of time.
Income Funds
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 and government securities. Income Funds are
ideal for capital stability and regular income.
Balanced Funds
The aim of balanced funds is to provide both growth and regular
income. Such schemes periodically distribute a part of their earning and
invest both in equites and fixed income securities in the proportion
indicated in their offer documents. In a rising stock market, the NAV of
these schemes may not normally keep pace, or fall equally when the market
falls. These ar5e ideal for investors looking for a combination of income
and moderate growth.
Money Market Funds
The aim of money market funds is to provide easy liquidity,
preservation of capital and moderate income. These schemes generally
invest in safer short-term instruments such as treasury bills, certificates of
deposit commercial paper and inter-bank call money. Returns on these
schemes may fluctuate depending upon the interest rates prevailing in the
market. These are ideal for Corporate and individual investors as a means
to part their surplus funds for short periods.
Other Schemes :
Tax Saving Schemes
These schemes offer tax rebates to the investors under specific
provisions of the Indian Income Tax laws as the government offers tax
incentives for investment in specified avenues.
Investments made in Equity Linked Savings Schemes (ELSS) and Pension
Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The
Act also provides opportunities to investors to save capital gains u/s 54EA
and 54EB by investing in Mutual Funds, Provided the capital asset has
been sold prior to April 1, 2000 and the amount is invested before
September 30, 2000.
Special Schemes
• Industry Specific Schemes
Industry Specific Schemes invest only in the industries specified in
the offer document. The investment of these funds is limited to specific
industries like Info Tech, FMCG, Pharmaceuticals etc.
• Index Schemes
Index funds attempts to replicate the performance of a particular
index number as the BSE Sensex or the NSE 50.
• Sectoral Schemes
Sectoral funds are those which invest excusively in a specified
industry or group of industries or various segments such as ’A’
Group shares or initial public offering.
Flexibility
Through features such as regular investment plans, regular
withdrawal plans and dividend reinvestment plans, you can systematically
invest or withdraw funds according to your needs and convenience.
Affordability
Investors individually may lack sufficient funds to invest in high-
grade stocks. A mutual fund because of its large corpus allows even a small
investor to take the benefit of its investment strategy.
Choice of Schemes
Mutual Funds offer a family of schemes to suit our varying needs
over a lifetime.
Well Regulated
All Mutual Funds are registered with SEBI and they function within
the provisions of strict regulations designed to protect the interests of
investors. The operations of Mutual Funds are regularly monitored by
SEBI.
Net Asset Value (NAV)
The net asset value of the fund is the cumulative market value of the assets
fund net of its liabilities. In other words, if the fund is dissolved or
liquidated, by selling off all the assets in the fund, this is the amount that
the shareholders would collectively own. This gives rise to the concept of
net asset value per unit, which is the value, represented by the ownership of
one unit in the fund. It is calculated simply by dividing the net asset value
of the fund by the number of units. However, most people refer loosely to
the NAV per unit as NAV, ignoring the ‘‘per unit’’. We also abide by the
same convention.
Calculation of NAV
The most important part of the calculation is the valuation of the
assets owned by the fund. Once it is calculated, the NAV is simply the net
value of assets divided by the number of units outstanding. The detailed
methodology for the calculation of the asset value is given below.
Asset value is equal to
Sum of market value of shares/debentures + Liquid assets/cash
held, if any + Dividends/interest accrued Amount due on unpaid assets
Expenses accrued but not paid.
Details on the above items
For liquid shares/debentures, valuation is done on the basis of the
last or closing market price on the principal exchange where the security is
traded.
For illiquid and unlisted and/or thinly traded shares/debentures, the
value has to be estimated. For shares, this could be the book value per
share or an estimated market price if suitable benchmarks are available. For
debentures and bonds, value is estimated on the basis of yields of
comparable liquid securities after adjusting for illiquidity. The value of
fixed interest bearing securities moves in a direction opposite to interest
rate changes Valuation of debentures and bonds is a big problem since
most of them are unlisted and thinly traded. This gives considerable leeway
to the AMCs on valuation and some of the AMCs are believed to take
advantage of this and adopt flexible valuation policies depending on the
situation.
Interest is payable on debentures/bonds on a periodic basis say
every 6 months. But, with every passing day, interest is said to be accrued,
at the daily interest rate, which is calculated by dividing the periodic
interest payment with the number of days in each period. Thus, accrued
interest on a particular day is equal to the daily interest rate multiplied by
the number of days since the last interest payment date.
Usually, dividends are proposed at the time of the Annual General
meeting and become due on the record date. There is a gap between the
dates on which it becomes due and the actual payment date. In the
intermediate period, it is deemed to be ‘‘accrued’’.
Expenses including management fees, custody charges etc. are calculated
on a daily basis.
OBJECTIVES
To define and maintain high professional and ethical standards in
all areas of operation of mutual fund industry.
To recommend and promote best business practices and code of
conduct to be followed by members and other engaged in the
activities of mutual fund and asset management including agencies
connected or involved in the field of capital markets and financial
services.
To interact with the Securities and Exchange Board of India (SEBI)
and to represent to SEBI on all matters concerning the mutual fund
industry.
To represent to the Government, Reserve Bank of India and other
bodies on all matters relating to the Mutual Fund Industry.
To develop a cadre of well-trained Agent distributors and to
implement a program of training and certification for all
intermediaries and others engaged in the industry.
To undertake nation wide investor awareness program so as to
promote proper understanding of the concept and working of
mutual funds.
To disseminate information on Mutual Fund Industry and to
undertake studies and Research directly and/or in association with
other bodies.
REGULATORY ASPECTS
Schemes of a Mutual Fund
• The asset management company shall launch no scheme unless the
trustees approve such scheme and a copy of the offer document has
been filed with the Board.
• Every mutual fund shall along with the offer document of each
scheme pay filing fees.
• The offer document shall contain disclosures which are adequate in
order to enable the investors to make informed investment decision
including the disclosure on maximum investments proposed to be
made by the scheme in the listed securities of the group companies
of the sponsor. A close-ended scheme shall be fully redeemed at the
end of the maturity period. “Unless a majority of the unit holders
otherwise decide for its rollover by passing a resolution”.
• The mutual fund and asset management company shall be liable to
refund the application money to the applicants,-
(i) If the mutual fund fails to receive the minimum subscription
amount referred to in clause (a) of sub-regulation (1);
(ii) If the moneys received from the applicants for units are in excess of
subscription as referred to in clause (b) of sub-regulation (1).
• The asset management company shall issue to the applicant whose
application has been accepted, unit certificates or a statement of
accounts specifying the number of units allotted to the applicant as
soon as possible but not later than six weeks from the date of
closure of the initial subscription list and or from the date of receipt
of the request from the unit holders in any open ended scheme.
Rules Regarding Advertisement :
The offer document and advertisement materials shall not be
misleading or contain any statement or opinion, which are incorrect or
false.
Investment Objectives And Valuation Policies:
The price at which the units may be subscribed or sold and the price
at which such units may at any time be repurchased by the mutual fund
shall be made available to the investors.
General Obligations :
• Every asset management company for each scheme shall keep and
maintain proper books of accounts, records and documents, for each
scheme so as to explain its transactions and to disclose at any point
of time the financial position of each scheme and in particular give
a true and fair view of the state of affairs of the fund and intimate to
the Board the place where such books of accounts, records and
documents are maintained.
• The financial year for all the schemes shall end as of March 31 of
each year. Every mutual fund or the asset management company
shall prepare in respect of each financial year an annual report and
annual statement of accounts of the schemes and the fund as
specified in Eleventh Schedule.
• Every mutual fund shall have the annual statement of accounts
audited by an auditor who is not in any way associated with the
auditor of the asset management company.
Procedure For Action In Case of Default :
On and from the date of the suspension of the certificate or the
approval, as the case may be, the mutual fund, trustees or asset
management company, shall cease to carry on any activity as a mutual
fund, trustee or asset management company, during the period of
suspension, and shall be subject to the directions of the Board with regard
to any records, documents, or securities that may be in its custody or
control, relating to its activities as mutual fund, trustees or asset
management company.
Restrictions On Investments:
• A mutual fund scheme shall not invest more than 15% of its NAV
in debt instruments issued by a single issuer, which are rated not
below investment grade by a credit rating agency authorized to
carry out such activity under the Act. Such investment limit may be
extended to 20% of the NAV of the scheme with the prior approval
of the Board of Trustees and the Board of asset management
company.
• A mutual fund scheme shall not invest more than 10% of its NAV
in unrated debt instruments issued by a single issuer and the total
investment in such instruments shall not exceed 25% of the NAV of
the scheme. All such investments shall be made with the prior
approval of the Board of Trustees and the Board of asset
management company.
• No mutual fund under all its schemes should own more than ten per
cent of any company’s paid up capital carrying voting rights.
• Such transfers are done at the prevailing market price for quoted
instruments on spot basis.
The securities so transferred shall be in conformity with the
investment objective of the scheme to which such transfer has been
made.
• A scheme may invest in another scheme under the same asset
management company or any other mutual fund without charging
any fees, provided that aggregate interscheme investment made by
all schemes under the same management or in schemes under the
management of any other asset management company shall not
exceed 5% of the net asset value of the mutual fund.
• The initial issue expenses in respect of any scheme may not exceed
six per cent of the funds raised under that scheme.
• Every mutual fund shall buy and sell securities on the basis of
deliveries and shall in all cases of purchases, take delivery of
relative securities and in all cases of sale, deliver in the securities
and shall in no case put itself in a position whereby it has to make
short sale or carry forward transaction or engage in badla finance.
• Every mutual fund shall, get the securities purchased or transferred
in the name of the mutual fund on account of the concerned
scheme, wherever investments are intended to be of long-term
nature.
• Pending deployment of funds of a scheme in securities in terms of
investments objectives of the scheme a mutual fund can invest the
funds of the scheme in short term deposits of scheduled commercial
banks.
• No mutual fund scheme shall make any investment in;
i. Any unlisted security of an associate or group
company of the sponsor, or
ii. Any security issued by way of private placement by
an associate or group company of the sponsor; or
The listed securities of group companies of the sponsor which is in
excess of 30% of the net assets [of all the schemes of a mutual fund]
• No mutual fund scheme shall invest more than 10 per cent of its
NAV in the equity shares or equity related instruments of any
company. Provided that, the limit of 10 per cent shall not be
applicable for investments in index fund or sector or industry
specific scheme.
• A mutual fund scheme shall not invest more than 5% of its NAV in
the equity shares or equity related investments in case of open-
ended scheme and 10% of its NAV in case of close-ended scheme.
IN KARVY
Hold Kingfisher Airlines, says Baliga
Ambareesh Baliga of Karvy Stock Broking is of the view that one can hold
Kingfisher Airlines.
Ambareesh Baliga of Karvy Stock Broking is of the view that one can buy
Axis Bank on declines.
Karvy Stock Broking has maintained its buy rating on Everest Kanto
Cylinder (EKC) with a target of Rs 310. EKC reported net profit of Rs 432
million as against Rs 284 million reported during 2QFY08.
Karvy Stock Broking has maintained its buy rating on Oriental Bank of
Commerce (OBC) with a target of Rs 224. In 2QFY09, Oriental Bank of
Commerce reported NII growth of 31% (Y/Y) to Rs 5.2 billion.
Karvy Stock Broking has downgraded its rating on Cinemax India from
buy to outperformer with a target of Rs 61. Cinemax is expected to show a
topline growth of 44% YoY and 34% QoQ. The YoY growth will be
primarily on the back of 8 new properties with 23 screens, which have been
launched since 2Q FY08.
Karvy Stock Broking has recommended a buy rating on HDFC Bank with
a target of Rs 1435. In FY200810, we expect that the bank\’s total
business, NII and net profit would grow by 32%, 34% and 31.3% CAGR
respectively.
Buy Petronet LNG, target of Rs 63: Karvy
Karvy Stock Broking has changed its rating on Petronet LNG from market
performer to buy with a target of Rs 63. For FY09, the research firm
expects the revenue growth of 9.8% to Rs 71,948 million and adjusted
profit to rise by 11.9% to Rs 5,309 million.
Karvy Stock Broking has maintained its buy rating on Aventis Pharma
with a target of Rs 1000. Net revenues for the quarter are expected to be
higher by 8 % to Rs 2.44 billion.
Karvy Stock has upgraded its rating on Satyam Computer Services from
outperformer to buy with a target of Rs 350. The research firm expects
Satyam to report a sequential revenue growth of 10.3%.
Karvy Stock Broking has upgraded its rating on Cairn India (CIL) from
outperformer to buy with a target of Rs 287. The research firm believes
that the market has become overly negative on CIL due to the recent fall in
crude oil price in dollar terms.
Ambareesh Baliga of Karvy Stock Broking is of the view that one should
use higher level to exit from Hindalco Industries.
Karvy Stock Broking has maintained its buy rating on SpiceJet with a
target of Rs 33. The research firm expects SpiceJet to report full year seat
factor of 65.3%.
Ambareesh Baliga of Karvy Stock Broking is of the view that one can sell
Sterlite Industries. But one can hold on to Madras Aluminium and not
actually buy it at this point of time, he added.
Ambareesh Baliga of Karvy Stock Broking is of the view that one can sell
Sesa Goaat this level.
Sensex has support at 14600: Karvy
Hemindra Hazari of Karvy Stock Broking feels the market’s attention has
now been focused on capital goods stocks. However, Hazari feels the
market is overreacting at the moment and he does not see anything
happening in the immediate future; even in the nuclear power space.
Karvy Stock Broking has recommended a buy rating on Cairn India with a
target of Rs 287. The research firm believes that Cairn India Limited (CIL)
stock is attractively priced and offers upside as crude oil price continues to
remain high.
Nifty has resistance at 4450: Karvy
Ashok Mittal of Karvy Comtrade feels that the crude undertone is bearish.
But he sees support at USD 100 per barrel levels. Kishore Narne,
VicePresident of Anand Rathi Commodities expects crude to bounce in
nearterm on short covering. He sees doubledigit figures for crude over the
next quarter.
Nifty has support at 4440: Karvy
Ambareesh Baliga of Karvy Stock Broking feels that the market will move
up from 4500 levels in two weeks or so. The Nifty will consolidate from
this range and it can go upto 46004650 to may be 4850 levels.
Karvy Stock Broking has recommended buy rating on Lupin, with price
target of Rs 930, in its report dated September 2, 2008.
Ambareesh Baliga of Karvy Stock Broking is of the view that one can stay
invested in Punj Lloyd. Over the next eightnine months we should see
levels of closer to Rs 373380 because clearly the order book position is
extremely good and the fixed price contract in that order book is just about
10%.
Exit Moser Baer, says Baliga
Ambareesh Baliga of Karvy Stock Broking is of the view that one can exit
Moser Baer. The optical media, which was the main business of the
company earlier is not doing well in fact they are suffering losses there and
at the same time the new business of photo voltaic sales is yet to takeoff
and show performance.
Ambareesh Baliga of Karvy Stock Broking is of the view that one can hold
Firstsource Solutions for possibly the next twothree weeks by which one
should see levels of Rs 4850.
Ambareesh Baliga of Karvy Stock Broking is of the view that SBI can test
Rs16001650. If one sees level closer to around Rs 1,2501,275, should be
utilize to average out and possibly over the next sixseven months one
should be able to get out of this stock at Rs 1,6001,650.
Karvy Stock Broking has maintained its buy rating on Opto Circuits India
with a target price of Rs 531. Opto Circuits is planning to raise fund of Rs
10 billion for future expansion, joint ventures, acquisition, research
development and other purposes.
Global Scenario
• The money market mutual fund segment has a total corpus of $ 1.48
trillion in the U.S. against a corpus of $ 100 million in India.
• In the U.S. the total number of schemes is higher than that of the
listed companies while in India we have just 277 schemes
• In the U.S. about 9.7 million households will manage their assets
on-line by the year 2003, such a facility is not yet of avail in India.
• On- line trading is a great idea to reduce management expenses
from the current 2 % of total assets to about 0.75 % of the total
assets.
• 72% of the core customer base of mutual funds in the top 50-
broking firms in the U.S. are expected to trade on-line by 2003.
In fact in advanced countries like the U.S.A, mutual funds buy- sell
transactions have already begun on the Net, while in India the Net is used
as a source of Information.
Such changes could facilitate easy access, lower intermediation costs and
better services for all. A research agency that specializes in internet
technology estimates that over the next four years Mutual Fund Assets
traded on- line will grow ten folds from $ 128 billion to $ 1,227 billion ;
whereas equity assets traded on-line will increase during the period from $
246 billion to $ 1,561 billion. This will increase the share of mutual funds
from 34% to 40% during the period.
Here are some of the basic changes that have taken place since the advent
of the Net.
Future Scenario
Out of ten public sector players five will sell out, close down or merge with
stronger players in three to four years. In the private sector this trend has
already started with two mergers and one takeover. Here too some of them
will down their shutters in the near future to come.
But this does not mean there is no room for other players. The market will
witness a flurry of new players entering the arena. There will be a large
number of offers from various asset management companies in the time to
come. Some big names like Fidelity, Principal, Old Mutual etc. are looking
at Indian market seriously. One important reason for it is that most major
players already have presence here and hence these big names would
hardly like to get left behind.
In the U.S. most mutual funds concentrate only on financial funds like
equity and debt. Some like real estate funds and commodity funds also take
an exposure to physical assets. The latter type of funds are preferred by
corporate’s who want to hedge their exposure to the commodities they deal
with.
For instance, a cable manufacturer who needs 100 tons of Copper in the
month of January could buy an equivalent amount of copper by investing
in a copper fund. For Example, Permanent Portfolio Fund, a conservative
U.S. based fund invests a fixed percentage of it’s corpus in Gold, Silver,
Swiss francs, specific stocks on various bourses around the world, short –
term and long-term U.S. treasuries etc.
In U.S.A. apart from bullion funds there are copper funds, precious metal
funds and real estate funds (investing in real estate and other related assets
as well.).In India, the Canada based Dundee mutual fund is planning to
launch a gold and a real estate fund before the year-end.
COMPANY PROFILE
Overview: -
The birth of Karvy was on a modest scale in 1981. It began with the
vision and enterprise of a small group of practicing Chartered Accountants
who founded the flagship company, Karvy Consultants Limited. They
started with consulting and financial accounting automation, and carved
inroads into the field of registry and share accounting by 1985. Since then,
they have utilized their experience and superlative expertise to go from
strength to strength…to better their services, to provide new ones, to
innovate, diversify and in the process, evolved Karvy as one of India’s
premier integrated financial service enterprise.
Thus over the last 20 years Karvy has traveled the success route,
towards building a reputation as an integrated financial services provider,
offering a wide spectrum of services. And it has made this journey by
taking the route of quality service, path-breaking innovations in service,
versatility in service and finally…totality in service.
Product Profile :-
IT enabled services:-
We offer services that are beyond just a medium for buying and
selling stocks and shares. Instead we provide services, which are multi
dimensional and multi-focused in their scope. There are several advantages
in utilizing our Stock Broking services, which are the reasons why it is one
of the best in the country.
But true to our spirit, this success is not our final destination, but
just a platform to launch further enhanced quality services to provide you
the latest in convenient, customer-friendly stock management.
Over the years we have ensured that the trust of our customers is
our biggest returns. Factors such as our success in the Electronic custody
business has helped build on our tradition of trust even more.
Consequentially our retail client base expanded very fast.
Our foray into commodities broking has been path breaking and we
are in the process of converting existing traders in commodities into the
more organized mainstream of trading in commodity futures, both as a
trading and risk hedging mechanism.
In the future, our focus will be on the emerging businesses and to
meet this objective, we have enhanced our manpower and revitalized our
knowledge base with enhances focus on Futures and Options as well as the
commodities business.
Depository Participants:-
http://mfportfolio.karvy.com
Advisory Services
This specialized division was set up to cater to the high net worth
individuals and institutional clients keeping in mind that they require a
different kind of financial planning and management that will augment not
just existing finances but their life-style as well. Here we follow a hard-
nosed business approach with the soft touch of dedicated customer care and
personalized attention.
Merchant Banking:-
www.karvymfs.com
Issue Registry:-
In our voyage towards becoming the largest transaction-processing
house in the Indian Corporate segment, we have mobilized funds for
numerous corporate, Karvy has emerged as the largest transaction-
processing house for the Indian Corporate sector. With an experience of
handling over 700 issues, Karvy today, has the ability to execute
voluminous transactions and hard-core expertise in technology applications
have gained us the No.1 slot in the business. Karvy is the first Registry
Company to receive ISO 9002 certification in India that stands testimony to
its stature
http://karisma.karvy.com
www.karvycommodities.com
Research Methodology: -
Literature Research:-
To study the various aspects of the mutual funds various literature
works has been considered which includes various books related to the
Mutual Funds, AMFI guidelines, SEBI and SBI guidelines, various
business magazines and news papers. All the basic information from this
source regarding the various aspects of Mutual Fund helps in
understanding the Mutual Fund industry. Different Mutual Fund Scheme
Next to the literature work it is important to look over the various Mutual
Fund schemes, the service providers and other related information. This
may be gathered from the prospectus and websites of the Mutual Fund
service providers, various magazines and news papers.
Certificate of Deposit
Interest-bearing, short-term debt instrument issued by banks and
thrifts.
Closed-End Investment Company
An investment company that offers a limited number of shares.
They are traded in the securities markets, usually through brokers. Price is
determined by supply and demand. Unlike open-end investment companies
(mutual funds), closed-end funds do not redeem their shares.
Commercial Paper
Short-term, unsecured promissory notes with maturates no longer
than 270 days. They are issued by corporations, to fund short-term credit
needs.
Common Stock Fund
An open-end investment company whose holdings consist mainly
of common stocks and usually emphasize growth of these funds keep the
proportions allocated between different sectors relatively constant, while
others alter the mix as market conditions change.
Automatic Reinvestment
A service offered by most mutual funds whereby income dividends
and capital gain distributions are automatically invested into the fund by
buying additional shares and thus building up holdings through the effects
of compounding.
Balanced Fund
A mutual fund that maintains a balanced portfolio, generally 60%
bonds or preferred stocks and 40% common stocks.
Bid or Sell Price
The price at which a mutual fund’s shares are redeemed (bought
back) by the fund. The bid or redemption price means the current net asset
value per share, less any redemption fee or backend load.
Bond Fund
A mutual fund whose portfolio consists primarily of corporate or
Government bonds. These funds generally emphasize income rather than
growth.
Bond Rating
System of evaluating the probability of whether a bond issuer will
default. Various firms analyze the financial stability of both corporate and
government bond issuers. Ratings range from AAA or Aaa (extremely
unlikely to default) to D (currently in default). Bonds rated BBB or below
are not considered to be of investment grade. Mutual funds generally
restrict their bond purchases to issues of certain quality ratings, which are
specified in their prospectuses.
Rupee-Cost Averaging
The technique of investing a fixed sum at regular intervals
regardless of stock market movements. This reduces average share costs to
the investor, who acquires more shares in periods of lower securities prices
and fewer shares in periods of high prices. In this way, investing risk is
spread over time.
Exchange Privilege (Or switching privilege)
The right to transfer investments from one fund into another,
generally within the same fund group, at nominal cost.
Ex-Dividend Date
The date on which a fund’s Net Asset Value (NAV) will fall by an
amount equal to the dividend and/or capital gains distribution (although
market movements may alter the fund’s closing NAV somewhat). Most
publications which list closing NAVs place an “X” after a fund’ name on
its ex-dividend date.
Expense Ratio
The ratio of total expenses to net assets of the fund. Expenses
include management fees, the cost of shareholder mailings and other
administrative expenses. The ratio is listed in a fund’s prospectus. Expense
ratios may be a function of a fund’s size rather than of its success in
controlling expenses.
Fiscal Year
An accounting period consisting of 12 consecutive months.
Global Fund
A fund that invests in both Indian and foreign securities.
Confirm Date
The date the fund processed your transaction, typically the same
day or the day after your trade date.
Options No. of % of
Respondents Respondents
Yes 120 75%
No 40 25%
Interpretation:-
25%
Yes
No
75%
Q2) From how many years you are the customer of Karvy?
years
5 – 10 years 30 25%
1 - 5 years 24 20%
Less than 1 year 6 5%
Interpretation: -
5%
20%
Less than 6 Months
6 m onths – 1 year
50% 1 year – 2 year
More than 2 year
25%
Schemes
Company’s Brand 16 40%
Name
Tie up with their 10 25%
bank
Any other - -
Interpretation:-
40% of respondents are doing trading with other companies because of their
brand image. Rest are trading with other companies because of tie up with their
Company’s brand
name
25% Any other
Options Number of % of
Respondents Respondents
Yes 90 75%
No 10 25%
Interpretation:-
75% of the respondents agree that they will switch over. But still 25% of
the respondents were there who will not switch to any other company.
25%
Yes
No
75%
Options Number of % of
Respondents Respondents
Interpretation:-
100% of the customers of Karvy are satisfied by the benefits and services
provided.
Q6) If no, then what are the reasons behinds that?
Interpretation:-
Every customer was satisfied. Not a single customer of Karvy was there
who was dissatisfied with the services provided .
Options Number of % of
Respondents Respondents
Yes 40 80%
No 10 20%
Interpretation:-
Ye s
80%
BIBLIOGRAPHY
A. Books
(1) Pandey I.M. ‘Financial Management’, Eigth Edition,
Vikas Publicating House Pvt. Ltd., pp 1074-1092
(2) Kothari C.R. (1990) ‘Research Methodology’, Second
Edition,
Wishwa Prakashan, pp 39-149.
B. Websites
1. www.businessweek.com
2. www.google.com
3. www.karvy.com
C. Newspapers
1. Business line
2. Economic Times