TABLE OF CONTENTS:

1. 2. 3. 4. !. &. Acknowledgement Preface Students Declaration Objecti e Pro"osed #et$odolog% 'ackground of a. Standard ($artered b. Standard ($artered A#( ). #utual *und a. +ntroduction b. ($aracteristics of #* c. About #* +ndustr% d. ,egulator% Structure of #* in +ndia e. (once"t - ,ole of #* f. .%"es of #* Sc$emes g. #ajor #utual *unds in +ndia $. ! /as% ste"s to +n est in #utual *und i. ! Pointers to #easure t$e Performance #* j. .a0 rules for #utual *und +n estors k. Ad antages - Disad antages of #* 1. 2$o can in est in #* in +ndia 3. (om"arison of +n estment Products 14.! (ommon #istakes of #* +n estors 11.Data +nter"retation of +n estors 12.Products or Sc$emes offered b% Standard ($artered A#( 13.com"arison of to" 14 o"en ended #*s on ! "arameters 14.'eta calculation of S ( Premier - S ( (lassic *unds 1!.Sna"5s$ot com"arison s$eet 1&.Suggestion on t$e basis of life stages 1).,isk factors in #* 11.'ibliogra"$%

ACKNOWLEDGEMENT

Success comes onl% after an effort6 encouragement and constant guidance. On com"letion of t$is "roject + would like to t$ank #r. Amit Sri asta a 7Area sales manager8 and #r. Ankit Samari%a 7sales officer8 for t$eir aluable guidance during t$e course of t$is "roject and also $el"ed me in t$e marketing of "ro"osed t$ree o"en ended e9uit% funds :i;< 18 S.A=DA,D (>A,./,/D (?ASS+( /@A+.B 28 S.A=DA,D (>A,./,/D P,/#+/, /@A+.B 38 S.A=DA,D (>A,./,/D +#P/,+A? /@A+.B as well as for gi ing me t$e o""ortunit% to work for t$e com"an%. Also + would like to t$ank all t$e ot$er staff members for t$eir co5o"eration and guidance t$at $el"ed me in com"leting t$e "roject. + would also like to t$ank all t$e *acult% members of Badruka Institute of Foreign Trade, !dera"ad for t$eir continuous su""ort and moti ation.

#$EFACE
#utual *unds are going to be amongst t$e most e0citing "la%ers in t$e %ears to come. *und managers of well oiled o"erations and t$eir clients are in for a terrific e0"erience. .$e 9uestion in e er%bod%s mind $owe er is6 C2$enDE 2$en will in estors interest in #utual *unds will reall% "ick u"D 2$en will t$e infatuation of t$e small in estors wit$ "rimar% markets endD And w$en will t$e mutual fund gain t$e t%"e of clout in t$e stock market t$at t$eir counter"arts in t$e Anited States of America enjo%.

.$e +ndian in estor6 belie es in "la%ing t$e market on $is own6 and will continue to do so till t$e time $is "erce"tion c$anges5 w$ic$ t$e% undoubtedl% will. *inancial institutions and mutual funds6 lea ing t$e small in estor wit$ no ot$er o"tion e0ce"t t$e mutual fund to "ut $is sa ings in.6 will ultimatel% dominate t$e markets but for t$is to $a""en6 industr% will $a e to be "atient and "ro e t$at it can "ro e in estors wit$ better returns t$an t$e markets. Plus t$e% will $a e to make t$eir o"erations muc$ more trans"arent and in estor friendl%. 2ell if we look at t$e trend and t$e figure of last one %ear number it seems t$e s$ift $as started to $a""en towards mutual fund s$ifting t$e trend.

ST%DENT&S DECLA$ATION

+ $ere b% declare t$at Summer .raining ,e"ort submitted as a re9uirement of fulfillment of m% #P+' course is m% original work and not submitted for t$e award of an% ot$er degree6 di"loma6 fellows$i" or ot$er similar title or "ri;es.

$o'it D(i)edi

OB*ECTI+E

.$e objecti e of t$is "roject is to suggest t$e customers to in est in mutual fund on t$e basis of t$eir ages b% com"aring t$e to" 14 o"en ended funds w$ic$ are t$e market leaders in t$e mutual fund industr%. .$e "roject would also re eal t$at w$ic$ A#( is t$e market leader and will facilitate in getting t$e better understanding from t$e in estor side. .$is would $el" Standard ($artered A#( in making marketing strategies w$ic$ would $el" eliminate t$e s$ortcomings and become t$e market leader in all t$e "ers"ecti es.

#ro,osed Met'odo-og!
*or t$e accom"lis$ment of t$is "roject following ste"s are recommended< STE# .< A=D/,S.A=D+=F t$e "roduct and detail stud% of t$e conce"t mutual funds. STE# /< .$is ste" is com"rises of meeting wit$ in estors along wit$ t$e Standard ($artered em"lo%ees. STE# 0< *inall% anal%;ing and inter"reting t$e collected data and "re"aring t$e final re"ort.

&

BACKG$O%ND OF STANDA$D C A$TE$ED

.$e Standard ($artered Frou" was formed in 13&3 t$roug$ a merger of two banks< .$e Standard 'ank of 'ritis$ Sout$ Africa founded in 11&36 and t$e ($artered 'ank of +ndia6 Australia and ($ina6 founded in 11!3. 'ot$ com"anies were keen to ca"italise on t$e $uge e0"ansion of trade and to earn t$e $andsome "rofits to be made from financing t$e mo ement of goods from /uro"e to t$e /ast and to Africa. Standard ($artered $as a $istor% of o er 1!4 %ears in banking and o"erates in man% of t$e worldGs fastest5growing markets wit$ an e0tensi e global network of o er 16444 branc$es 7including subsidiaries6 associates and joint entures8 in o er !4 countries in t$e Asia Pacific ,egion6 Sout$ Asia6 t$e #iddle /ast6 Africa6 t$e Anited Hingdom and t$e Americas. As one of t$e worldGs most international banks6 Standard ($artered em"lo%s almost &46444 "eo"le6 re"resenting o er 144 nationalities6 worldwide. .$is di ersit% lies at t$e $eart of t$e 'ankGs alues and su""orts t$e 'ankGs growt$ as t$e world increasingl% becomes one market. 2it$ strong organic growt$ su""orted b% strategic alliances and ac9uisitions and dri en b% its strengt$s in t$e balance and di ersit% of its business6 "roducts6 geogra"$% and "eo"le6 Standard ($artered is well "ositioned in t$e emerging trade corridors of Asia6 Africa and t$e #iddle /ast. Standard ($artered deri es o er 34 "er cent of "rofits from Asia6 Africa and t$e #iddle /ast. Ser ing bot$ (onsumer and 2$olesale 'anking customers worldwide6 t$e 'ank combines dee" local knowledge wit$ global ca"abilit% to offer a wide range of inno ati e "roducts and ser ices as well as award5winning solutions. .rusted across its network for its standard of go ernance and cor"orate res"onsibilit%6 Standard ($artered takes a long term iew of t$e conse9uences of its actions to ensure t$at t$e 'ank builds a sustainable business t$roug$ social inclusion6 en ironmental "rotection and good go ernance. Standard ($artered is also committed to all its stake$olders b% li ing its alues in its a""roac$ towards managing its "eo"le6 e0ceeding e0"ectations of its customers6 making a difference in communities and working wit$ regulators.

Esta"-is'1ent of Standard C'artered Bank around t'e (or-d

Country United Kingdom China, ndia, !ri "an#a (ong Kong, !inga)ore ndonesia, *a#istan *hili))ines $alaysia ,a)an 3imbab4e 5he 6ambia, !ierra "eone, 5hailand 6hana .ots4ana U!A .angladesh 3ambia Kenya Uganda 5an/ania .ahrain ,ordan Korea ;atar Year Established 1853 1858 1859 1863 18+18+5 1881 1891894 1896 189+ 1911915 1916 1911 191191+ 19-1 19-5 19-9 1951 Country Australia $e%i&o, 'man *eru ,ersey .ra/il 0ene/uela 2al#land slands, $a&au 5ai4an Cameroon 7e)al 0ietnam Cambodia, !outh A8ri&a ran Colombia "aos, Argentina 7igeria "ebanon Cote d9 :oire $auritius 5ur#ey A8ghanistan Year Established 1964 1968 19+3 19+8 19+9 1981 1983 1985 1986 198+ 1991 1991993 1995 1996 1999 -111 -111 -11-113 -114

.runei, UAE

1958

STANDA$D C A$TE$D AMC

Standard ($artered #utual *und is well5establis$ed fund $ouse and is s"onsored b% t$e Standard ($artered Frou". S(#* were among t$e first to launc$ an acti e management debt fund5t$e D%namic 'ond *und 5 t$at $ad t$e ca"abilit% to mimic a cas$ fund or an income fund de"ending on market situations. .$e S$ort term and #edium term funds t$at were uni9uel% "ositioned at arious "oints along t$e interest rate cur e wit$ t$e sole objecti e of ma0imi;ing alue to in estors wit$ different in estment time $ori;ons. S(#* manage our sc$emes t$roug$ well5researc$ed and t$oroug$l% tested "rocesses like t$e 3 D *actor 7*or debt funds and $el"s us in "redicting interest rate mo ements8 and t$e /9uit% (ircle "rocess. S(#* also "ioneered se eral ser ice initiati es t$at $el"ed increase transactional ease. +t was t$e first mutual fund to initiate< 18 Across t$e counter redem"tions for all classes of in estors in li9uid funds6 28 One (all *ree number 114422&&22 accessible across 1!3 cities 38 P$one transact ser ice w$erein in estors can redeem wit$out Personal +dentification =umber $a ing an%

Standard ($artered #utual *und currentl% manages assets in e0cess of ,s. 13444 crores 7 ASD 2.3 'illion 8 and $as touc$ed t$e li es of more t$an lak$s of in estors residing in more t$an 1444 +ndian towns. A#( is managing currentl% 3 o"en ended funds i;< .2 Standard C'artered C-assi3 E4uit! Fund 5Laun3'ed at 6 Aug /7782:

A8 >ow t$e mone% is in ested under t$is fund< a8 #one% is in ested in a di ersified "ortfolio of com"anies. b8 .$e mone% is in ested across sectors of t$e econom% and arious markets ca"s to take ad antage of t$e o""ortunities t$at e0ist in time. c8 .$ere is strict limit on sectors and com"anies to ensure a trul% di ersidied in estment.
3

'8 *und Strategies< a8 Sector ,otation< .o take ad antage of growt$ o""ortunities in arious sectors of t$e econom%. b8.$eme Selection< .o take ad antage of arious macroeconomic t$emes t$at "la% out in wa%s t$at en$ances cor"orate "rofitabilit% eg. +nfrastructure6 consum"tion etc. c8#arket ca"itali;ation< +n esting in com"anies $a ing a largeImidIsmall ca" to en$ance or "rotect returns de"ending on market conditions. d8 Stock selection< +n esting in com"anies on t$e basis of A#(s in5$ouse researc$6 in order to get an edge on market knowledge. (8 *or w$om is t$is fund rele ant< *or conser ati e in estors w$o $a e a 253 %ear $ori;on. D8 'enc$mark< 'S/ 244 +nde0

/2 Standard C'artered I1,eria- E4uit! Fund5Laun3'ed at .9 Mar /7792: A8 >ow t$e mone% is in ested under t$is fund < a8 #one% is in ested in a "ortfolio of $ig$ 9ualit%6 well known +ndian com"anies. b8 .$e mone% is in ested in com"anies t$at are well recogni;ed6 $a e a "ro en track record6 strong brands6 low financial risk etc. c8.$ese com"anies s$ow t$e "romise of e0$ibiting $ig$ growt$ outside t$e +ndian s$ores and establis$ t$emsel es as global "la%ers. '8 *und Strategies < a8Flobalisation< +ndian (om"anies w$ic$ $a e cross t$e countr%s boundries to be significant "la%ers in t$e global landsca"e. b8 Domestic demand< .ake ad antage of t$e $ig$ growt$ o""ortunities t$at domestic demand offers in t$e backdro" of $ig$ FDP growt$ rates for +ndia. c8 /merging sectors< .ake ad antage of o""ortunities t$at a growing econom% "ro ides b% wa% of emergence of new sectors of "rominence eg.,etailing6 a iation6 telecom etc.
14

(8 *or w$om is t$is fund rele ant< *or conser ati e in estors w$o $a e a 153 %ear $ori;on. D8 'enc$mark< 'S/ 244 +nde0.

02 Standard C'artered #re1ier E4uit! Fund5Laun3'ed at /8 Se, /7782: A8 >ow t$e mone% is in ested under t$is fund < a8 .$e fund $as a bias towards a "ortfolio of com"anies w$ic$ are going to undergo transformatonal c$anges in t$eir business "ros"ectus. b8 .$e mone% is in ested in com"anies t$at are at an earl% stage in t$eir life5c%cle and are at t$e start of a "eriod of $ig$ growt$ and "rofitabilit%. c8.$e in estments will attem"t to ca"ture s$ifts in t$e business en ironment wit$ regard to new business o""ortunities6 new tec$nologies6 new trends etc. '8 *und strategies< a8A#( rel% on in5$ouse "rimar% researc$ of com"anies in t$is "ortfolio..$is re9uires meeting u" wit$ to" management6 em"lo%ees6 dealers6 trade bodies etc. b8.$e inde"endent mindset to "ick5u" s"ecific stocks on t$e basis of large amounts of $omework makes t$is fund uni9ue and reflects A#(s belief and e0"ertise. (8 (ould t$ere be risks associated wit$ suc$ a fund< 2$ere t$ere is t$e "ros"ect of great wealt$ to be made t$ere is also t$e realit% of risk. D8 *or w$om is t$is fund rele ant< *or in estors w$o $a e a 35! %ear $ori;on a long term "lan and t$e disci"line to sta% b% it. /8 'enc$mark< 'S/ 244 +nde0

INT$OD%CTION

11

W'at is Mutua- Fund :

A 1utua- fund is a form of collecti e in estment t$at "ools mone% from man% in estors and in ests t$eir mone% in stocks6 bonds6 s$ort5term mone% market instruments6 ot$er securities etc. +n a mutual fund6 t$e fund manager trades t$e fundGs underl%ing securities6 reali;ing ca"ital gains or losses6 and collects t$e t$e di idend or interest income. .$e in estment "roceeds are t$en "assed along to t$e indi idual in estors. A mutual fund is created w$en in estor "ut t$eir mone% toget$er. +t is t$erefore a "ool of t$e in estors funds. .$e term mutual means t$at in estors contribute to t$e "ool and also benefit from t$e "ool. .$ere are no ot$er claimants to funds. .$e "ool of funds $el" mutuall% b% in estors is t$e mutual fund. A mutual fund business is to in est t$e funds t$us collected according to t$e wis$es of t$e in estors w$o created t$e "ool t$e in ested a""oints "rofessional in estment mangers6 to mange t$eir funds.

$*'<5A75 C(A<AC5E< !5 C! '2 5(E $U5UA" 2U7=

1. 2. 3. 4. A mutual fund actuall% belongs to t$e in estors w$o $a e "ooled t$eir funds. .$e owners$i" of t$e mutual fund is in t$e $and of t$e in estor A mutual fund is managed b% in estment "rofessional and ot$er ser ice "ro iders w$o earn a fee for t$eir ser ices from t$e fund .$e "ool of funds is in ested in a "ortfolio of marketable in estments. .$e alue of t$e "ortfolio is u"date e er% da%. .$e in estors s$are in t$e fund is denominated b% CA=+.E. .$e alue of t$e unit c$anges wit$ c$anges in t$e "ortfolio alue e er% da% t$e alue of t$e unit of in estment is called as t$e =et Assets :alue or =A:. .$e in estment "ortfolio of t$e fund is created according to t$e stated in estment objecti es of t$e fund.

!.

12

A"out Mutua- Fund Industr!

#utual *unds are financial intermediaries w$ic$ "ool t$e sa ings of numerous indi iduals and in est t$e mone%6 t$us related in a di ersified "ortfolio of securities6 including e9uit%6 bonds debentures and ot$er mone% market instruments6 t$us s"reading and reducing risk. .$e objecti e of mutual fund is to ma0imi;e t$e return to t$e in estor w$o "artici"ates in e9uit% indirectl% t$roug$ mutual funds. / en t$oug$ t$e mutual fund industr% grown in asset alue from ,s.)444 (rores to 26446444I5 (rores toda%6 t$is is just t$e ti" of t$e iceberg. According to most *und #anagers6 t$e real boom is %et to come. .$e sum of ,s.26446444I5 (rores re"resents just 3J 5 4J of t$e total market ca"itali;ation of 2!6446444 (rore. .$is com"ares "oorl% wit$ t$e AS6 w$ere t$e mutual funds $a e nearl% K &.1 billion of market ca"itali;ation of roug$l% ,s.)4444 (rore6 barel% 3J 5 4J of total market ca"itali;ation. .$is is not e0"ected6 because mutual fund $istor% in +ndia6 w$ic$ dates back to 13&46 w$en t$e first o"en5ended mutual fund sc$eme Anit5&4 was launc$ed b% Anit .rust of +ndia6 is still dominated b% it. .$e focus initiall% was income earning securities6 wit$ onl% 24 J of t$e (or"us going into e9uit%. .$e earl% 14s saw ot$er sc$emes like t$e growing income6 fi0ed income6 and mont$l% income being introduced b% t$e A.+. 'ut it was onl% in 131& t$at t$e first "ure Frowt$ e9uit% sc$eme #aster s$are was launc$ed. 1313534 was anot$er landmark %ear in t$e $istor% of mutual funds. *or t$e fist time6 t$e mono"ol% of A.+ o er t$e industr% was broken. .$e go ernment allowed "ublic sector banks and insurance com"anies to enter t$is sector to bring in some com"etition. 'ut it was onl% in 13336 w$en t$e "ri ate sector was gi en t$e green signal to float mutual funds6 t$at e0citement and com"etition came. =ot onl% did t$e Fo ernment allowed +ndian com"anies to float mutual funds6 it e en allowed foreign funds to set in s$o" in +ndia and float funds. .$us6 in one stroke6 t$is sector was trul% "ri ati;ed. .oda% t$ere are about 12514 "ri ate "la%ers in t$e market including foreign funds suc$ as #organ Stanle%6 besides t$e nine "ublic sector "la%ers and A.+. .oget$er6 t$ese funds $a e mobili;ed around ,s.&!44 (rore from t$e market. .$e collections could $a e been better6 $ad not t$e "ublic sector funds been bus% com"l%ing wit$ t$e S/'+ guidelines "ertaining to t$e formation of asset management com"anies etc. 'ut t$e best is %et to come. A number of com"anies $a e "lans to float mutual funds at arious stages of im"lementation. Some of t$e major names w$ic$ are likel% to come to t$e market are .ata Sons in collaboration wit$ Hleinwort 'enson6 +.( (lassic
13

wit$ .$read needle A,6 O""en$eimer of AS6 "lus a $ost of ot$ers. And according to conser ati e guesstimates6 mutual funds are set to collect o er ,s.14444 (rore from t$e market t$is %ear. .$e reason for suc$ confidence is t$at wit$ S/'+ firm about t$e small in estor taking t$e mutual fund route to in estments in t$e stock market6 and t$e regulator% c$anges making it muc$ more difficult to get allotments in "rimar% markets6 small in estors will not be left wit$ man% o""ortunities.

$egu-ator! Stru3ture of Mutua- Fund in India

14

.$e structure of mutual fund in +ndia is go erned b% S/'+ 7#A.AA? *A=D8 regulations 133&. .$ese regulations make it mandator% for mutual funds to $a e a t$ree5 tier structure of SPO=SO,5.,AS.//5ASS/. #A=AF/#/=. (O#PA=B 7A#(8.

Con3e,t and ro-e of Mutua- Fund

A Mutua- Fund is common "ool of mone% into w$ic$ +n estor "lace t$eir contributions t$at are to be in ested in accordance wit$ a stated objecti e. .$e owners$i" of t$e *und is t$us joint or CmutualEL t$e fund belongings to all in estors. A single in estors owners$i" of t$e fund is in t$e same "ro"ortion as t$e amount of t$e contribution made b% $im or $er bears to t$e total amount of t$e fund.

1!

A #utual fund uses t$e mone% collected from in estors to bu% t$ose assets6 w$ic$ are s"ecificall% "ermitted b% its stated in estment objecti e. .$us6 an /9uit% *und would bu% mainl% /9uit% assets5ordinar% s$ares6 "reference s$ares6 warrants etc. A bond fund would mainl% bu% debt instruments suc$ as debentures6 bonds or go ernment securities. +t is t$ese assets6 w$ic$ are owned b% t$e in estors in t$e same "ro"ortions as t$ere contribution bears to t$e total contribution of all in estors "ut toget$er. 2$en an in estor subscribes to a mutual fund6 $e or s$e bu%s a "art of t$ese assets or t$e "ool of funds t$at are outstanding at t$at time. +ts no different from bu%ing Cs$aresE of a joint stock com"an%6 in w$ic$ case t$e "urc$ase makes t$e in estor a "art owner of t$e com"an% and its assets. +n fact6 in t$e ASA6 a #utual fund is constituted as an in estment com"an% and an in estor Cbu%s into t$e fundE6 meaning $e bu%s t$e s$ares of t$e fund. +n +ndia6 a mutual fund is constituted as a .rust and t$e in estor subscribes to t$e Cunits C issued b% t$e fund6 w$ic$ is w$ere t$e term unit .rust comes from.

T!,es of Mutua- Funds S3'e1es

Sc$emes floated b% t$e arious mutual funds are essentiall% of two t%"es6 namel% o"en5 ended and close5ended. .$e basic c$aracteristics of t$ese two t%"es of mutual fund sc$emes are gi en below<

1&

O#EN ENDED SC EMES:

O"en5ended sc$emes are a ailable for subscri"tion all t$e %ear round e0cluding t$e "eriod of book5closing. .$e% ma% or ma% not $a e a s"ecified redem"tion "eriod. .$e sale and re"urc$ase "rices are fi0ed b% t$e mutual fund concerned from time to time. ,e"urc$ases are generall% allowed al s"ecified rated. /ac$ o"en5ended sc$eme must $a e a minimum cor"us of ,s.!4 crore. +n case t$e fund manager is not able to raise t$is amount at t$e time of issue6 or &4 J of t$e targeted amount w$ic$e er is $ig$er6 t$e entire subscri"tion must be returned to t$e in estor.

CLOSE;ENDED SC EMES
.$ese are o"en for subscri"tion onl% during a s"ecified "eriod. Fenerall% t$e redem"tion dates are also s"ecified w$en t$e in estor can redeem t$eir units. .$e duration of t$is sc$eme aries< normall% it is !5) %ears. ,e"urc$ase during t$e inter ening "eriod ma% or ma% not be allowed. Some of t$e sc$emes t$oug$ $a e a re"urc$ase facilit% after a certain "eriod. #an% of t$ese sc$emes are listed in stock e0c$anges6 e0ce"t for some of t$e close5ended income sc$emes .

1)

E4uit! Oriented S3'e1es < .$ese sc$emes6 also commonl% called Frowt$ Sc$emes6 seek to in est a majorit% of t$eir
funds in e9uities and a small "ortion in mone% market instruments. Suc$ sc$emes $a e t$e "otential to deli er su"erior returns o er t$e long term. >owe er6 because t$e% in est in e9uities6 t$ese sc$emes are e0"osed to fluctuations in alue es"eciall% in t$e s$ort term. /9uit% sc$emes are $ence not suitable for in estors seeking regular income or needing to use t$eir in estments in t$e s$ort5term. .$e% are ideal for in estors w$o $a e a long5term in estment $ori;on. .$e =A: "rices of e9uit% fund fluctuates wit$ market alue of t$e underl%ing stock w$ic$ are influenced b% e0ternal factors suc$ as social6 "olitical as well as economic. >D*( Frowt$ *und6 >D*( .a0 sa er and >D*( +nde0 *und are e0am"les of e9uit% sc$emes. De"t Based S3'e1es: .$ese sc$emes6 also commonl% called +ncome Sc$emes6 in est in debt securities suc$ as cor"orate bonds6 debentures and go ernment securities. .$e "rices of t$ese sc$emes tend to be more stable com"ared wit$ e9uit% sc$emes and most of t$e returns to t$e in estors are generated t$roug$ di idends or stead% ca"ital a""reciation. .$ese sc$emes are ideal for conser ati e in estors or t$ose not in a "osition to take $ig$er e9uit% risks6 suc$ as retired indi iduals. >owe er6 as com"ared to t$e mone% market sc$emes t$e% do $a e a $ig$er "rice fluctuation risk and com"ared to a Filt fund t$e% $a e a $ig$er credit risk. INCOME SC EMES < .$ese sc$emes "ro ide returns in t$e form of di idends. .$e returns ma% be cumulati e or non5cumulati e on a mont$l%6 9uarterl%6 or %earl% basis. #utual *unds carr% market risks and are "ro$ibited b% S/'+ from declaring an% guaranteed rate of returns. .$e mone% under suc$ sc$emes are "redominantl% in ested in fi0ed income securities like debentures6 bonds6 Fo ernment securities etc.

Li4uid In3o1e S3'e1es: Similar to t$e +ncome sc$eme but wit$ a s$orter maturit% t$an +ncome sc$emes. An e0am"le of t$is sc$eme is t$e >D*( ?i9uid *und. Mone! Market S3'e1es: .$ese sc$emes in est in s$ort term instruments suc$ as commercial "a"er 7C(PE86 certificates of de"osit 7C(DE86 treasur% bills 7C.5'illE8 and o ernig$t mone% 7C(allE8. .$e sc$emes are t$e least olatile of all t$e t%"es of sc$emes because of

11

t$eir in estments in mone% market instrument wit$ s$ort5term maturities. .$ese sc$emes $a e become "o"ular wit$ institutional in estors and $ig$ net wort$ indi iduals $a ing s$ort5term sur"lus funds.
Gi-t Funds: .$is sc$eme "rimaril% in ests in Fo ernment Debt. >ence t$e in estor

usuall% does not $a e to worr% about credit risk since Fo ernment Debt is generall% credit risk free. >D*( Filt *und is an e0am"le of suc$ a sc$eme.

<B$ID SC EMES : .$ese sc$emes are commonl% known as balanced sc$emes. .$ese sc$emes in est
in bot$ e9uities as well as debt. '% in esting in a mi0 of t$is nature6 balanced sc$emes seek to attain t$e objecti e of income and moderate ca"ital a""reciation and are ideal for in estors wit$ a conser ati e6 long5term orientation. >D*( 'alanced *und and >D*( ($ildrens Fift *und are e0am"les of $%brid sc$emes. Inter)a- S3'e1es: .$ese sc$emes combine t$e features of o"en5ended and closed5ended sc$emes. .$e% ma% be traded on t$e stock e0c$ange or ma% be o"en for sale or redem"tion during "re5determined inter als at =A: based "rices. *rom t$e in estments "oint of iew t$e e0isting sc$emes can be furt$er di ided into 4 major categories < 1. G$OWT SC EMES < .$ese are usuall% close5ended sc$emes. .$e aim of suc$ sc$emes is to "ro ide ca"ital a""reciation to t$eir in estors and accordingl% a substantial "art of t$e (or"us is in ested in e9uities an con ertible debentures. Suc$ sc$emes are usuall% listed in t$e major stock e0c$anges and t$e ca"ital 2. a""reciation is reflected in t$eir market alue i.e. =A:. .$e% ma% or ma% not declare di idends e en t$oug$ t$e declaration of annual di idends re"resents t$e $ealt$ of a sc$eme. 3. E=%IT<;LINKED SC EMES 5ELSS2 : .$ese are "o"ularl% known as ta05 "lanning sc$emes . .$e% are essentiall% close5ended growt$ sc$emes in nature. .$e% are floated b% almost all t$e "ublic sector mutual funds in t$e last 9uarter of eac$ financial %ear6 some of t$e essential c$aracteristics are < a. +n estment u" to a ceiling of ,s.16446444I come under Section 14( of t$e +ncome .a0 Act. b. ,e"urc$ase is allowed after a s"ecified "eriod5 usuall% 3 %ears.

13

c. During t$e lock5in "eriod of 3 %ears t$eir units cannot be traded6 "ledged or transferred. +AL%E;ADDED SC EMES : t$e% are in addition to t$e growt$Iincome sc$emes. Some of t$e mutual funds sc$emes $a e "ro ision for M alue addition. .$is is usuall% in t$e nature of "ersonal insurance co er for accidents6 etc. F+( #utual *und was t$e first to introduce t$is conce"t.

Major Mutual Fund Companies in India

18 A'= A#,O #utual *und 28 'irla Sun ?ife #utual *und 38 'ank of 'aroda #utual *und 48 >D*( #utual *und !8 >S'( #utual *und &8 +=F :%s%a #utual *und )8 Prudential +(+(+ #utual *und 18 Sa$ara #utual *und 38 State 'ank of +ndia #utual *und 148 .A.A #utual *und 118 Hotak #a$indra #utual *und 128 A.+ #utual *und 138 Reliance Mutual Fund 14) Standard Chartered Mutual Fund 15) Franklin Templeton India Mutual Fund

24

1&8 #organ Stanle% #utual *und +ndia 1)8 /scorts #utual *und 11 Alliance (a"ital #utual *und 138 'enc$mark #utual *und 248 (anbank #utual *und 218 ($ola #utual *und 228 LIC Mutual Fund 23) IC Mutual Fund

8 Eas! Ste,s to In)est in Mutua- Funds 18 Sear3': >2$ere to look for if we want to in est in #*E
a8 (ontacting an +n estment ad isor in a bank or a brokerage $ouse or an +nde"endent *inancial Ad isor is t$e first ste" to gat$ering information. b8 #utual funds units can also be boug$t o er t$e +nternet. c8 #utual funds are muc$ like an% ot$er "roduct6 in t$at t$ere are manufacturers w$o "ro ide t$e "roduct and t$ere are dealers w$o sell t$em.

/2 E)a-uation: >/ aluation< c$oosing t$e rig$t mutual fund for %ou
As an in estor one ma% a8 for t$e s$ort term or long term want to in est b8 want regular income or growt$ c8 want to target lower risk or $ig$er returns d8 be con inced of a "articular sector and want to in est in it

21

02 #ur3'ase:
a8 S!ste1ati3 In)est1ent #-an 5SI#2: Allows %ou to sa e a "art of %our income regularl%. Also used to reduce risk w$en in esting in sc$emes targeting aggressi e growt$. b8 S!ste1ati3 Wit'dra(a- #-an 5SW#2: Allows %ou to wit$draw a "art of %our in estment regularl%. Ased w$en %ou want to wit$draw %our in estment for a s"ecific regular "a%ment6 like insurance "remium "a%ments of mont$l%I9uarterl% fre9uenc%. c8 Auto1ati3 de"it: Sa es t$e $assle of writing a c$e9ue w$en making an in estment. Bour account is debited automaticall% for t$e amount in ested. d8 Di)idend #-an : A8 Di idend Pa%out< Ander t$is "lan in estor can redeem $isI$er di idend at s"ecific times. '8 Di idend ,ein estment< Ander t$is "lan in estors di idend is rein ested back to its "rinci"al amount w$ic$ t$erefore increase t$e number of units in estor is $olding. e8 Gro(t': Ander t$is "lan income generated from in estment will "ut back to its in ested amount w$ic$ t$erefore increases t$e alue of eac$ unit customer is $olding.

?2 #ost #ur3'ase Monitoring:

Once %ou $a e in ested in an ongoing fund6 e0"ect a "eriod of two to t$ree da%s before %ou recei e an account statement on t$e address mentioned b% %ou in %our a""lication form. a8 T'e A33ount State1ent Bour account statement indicates %our current $olding in t$e sc$eme t$at %ou $a e in ested. b8 T'e transa3tion s-i,: .$e transaction sli" at t$e end of t$e account statement can be used for additional "urc$ases6 redem"tions or to intimate t$e mutual fund on an% c$ange in bank mandatesIaddress. 32 NA+: .$e =A:s of all t$e o"en5ended sc$emes are "ublis$ed at t$e fundGs website6 financial news"a"ers and A#*+ 7Association of #utual *unds8 web5site www.amfiindia.com.

82 E@IT:
22

/ er% A#( ad ice t$at e er% in estor s$ould monitor t$e $isI$er units =A: "eriodicall% but A#( also recommend t$eir unit $olders to not get swa%ed b% s$ort term considerations in deciding t$eir e0it. $ede1,tion: +n case of o"en ended funds in estor can redeem $isI$er in ested amount. #ost funds take 153 da%s to credit %our account wit$ %our redem"tion "roceeds.

23

8 #ointers to Measure Mutua- Fund #erfor1an3e

MEAS%$ES DESC$I#TION IDEAL $ANGE

STANDA$D DE+IATION

Standard De)iation a--o(s to e)a-uate t'e )o-ati-it! of t'e fundC T'e standard de)iation of a fund 1easures t'is risk "! 1easuring t'e degree to ('i3' t'e fund f-u3tuates in re-ation to its 1ean returnC Beta is a fair-! 3o11on-! used 1easure of riskC It "asi3a--! indi3ates t'e -e)e- of )o-ati-it! asso3iated (it' t'e fund as 3o1,ared to t'e "en3'1arkC $; s4uare 1easures t'e 3orre-ation of a fund&s 1o)e1ent to t'at of an indeAC $;s4uared des3ri"es t'e -e)eof asso3iation "et(een t'e fundGs )o-ati-it! and 1arket riskC A-,'a is t'e differen3e "et(een t'e returns one (ou-d eA,e3t fro1 a fundH gi)en its "etaH and t'e return it a3tua--! ,rodu3esC It a-so 1easures t'e uns!ste1ati3 risk C

S'ou-d "e near to it&s 1ean returnC

BETA

Beta D . E 'ig' risk! Beta E . E A)g Beta F. E Lo( $isk!

$;S=%A$E

$;s4uared )a-ues range "et(een 7 and .H ('ere 7 re,resents no 3orre-ation and . re,resents fu-- 3orre-ationC

AL# A

A-,'a is ,ositi)e E returns of sto3k are "etter t'en 1arket returnsC A-,'a is negati)e E returns of sto3k are (orst t'en 1arketC A-,'a is Iero E returns are sa1e as 1arketC T'e 'ig'er t'e S'ar,e ratioH t'e "etter a funds returns re-ati)e to t'e a1ount of risk takenC

S A$#E $ATIO S'ar,e $atioE Fund return in eA3ess of risk free returnJ Standard de)iation of FundC S'ar,e ratios are idea- for 3o1,aring funds t'at 'a)e a 1iAed asset 3-assesC

TaA $u-es For Mutua- Fund In)estorsB

24

As ,er t'e Finan3e Bi-- /77K

E4uit! s3'e1es Ot'er s3'e1es Di)idend in3o1e Di)idend distri"ution taA

S'ort Ter1 Ca,ita - Gains

Long Ter1 Ca,itaGain

S'ort Ter1 Ca,itaGains

Long Ter1 Ca,ita - Gain

TDS

A-- S3'e1es

E4uit! S3'e1 es

Li4uid S3'e1es

Ot'er S3'e1es

$esident Indi)iduaJ %F

.7L

NIL

AS #E$ SLAB

.7L 5/7L (it' indeAa tion2

NIL

TA@ F$EE

NIL

/MC0/L 5/8L N.7Lsur3 'argeNedu 3ation 3ess2 /MC0/L 5/8L N.7Lsur3 'argeNedu 3ation 3ess2 /MC0/L 5/8L N.7Lsur3 'argeNedu 3ation 3ess2 /MC0/L 5/8L N.7Lsur3 'argeNedu 3ation 3ess2 /MC0/L 5/8L N.7Lsur3 'argeNedu 3ation 3ess2

.?C.9L 5./C8L N.7Lsur3 'argeN0L edu3ation 3ess2 //C99L 5/7L N.7L sur3'arge N0L edu3ation 3ess2 //C99L 5/7L N.7L sur3'arge N0L edu3ation 3ess2 //C99L 5/7L N.7L sur3'arge N0L edu3ation 3ess2 .?C.9L 5./C8L N.7Lsur3 'argeN0L edu3ation 3ess2

#artners'i, Fir1s

.7L

NIL

07L

.7L 5/7L (it' indeAa tion2

NIL

TA@ F$EE

NIL

AO#JBOI

.7L

NIL

AS #E$ SLAB

.7L 5/7L (it' indeAa tion2

NIL

TA@ F$EE

NIL

Do1esti3 Co1,anies

.7L

NIL

07L

.7L 5/7L (it' indeAa tion2

NIL

TA@ F$EE

NIL

N$Is

.7L

NIL

AS #E$ SLAB

.7L 5/7L (it' indeAa tion2

STCG; TA@ F$EE 07LL TCG; /7LAf ter ,ro)idi ng for indeAa t

NIL

2!

AD+ANTAGES OF M%T%AL F%NDS:

#OINTS:
#ortfo-io Di)ersifi3ation N #utual *unds normall% in est in a well5di ersified "ortfolio or securities w$ere t$e in estor can $old a di ersified in estment "ortfolio e en wit$ a small amount of in estment. #rofessiona- Manage1ent N .$e in estors does not $a e t$e skills and t$e resources of t$eir own to succeed in toda%s fast mo ing6 global and so"$isticated markets. .$ereb% t$e% benefits from t$e "rofessional management skills broug$t in b% t$e fund in t$e management of in estors "ortfolio. Di)ersifi3ation of $isk; Since t$e in estor ac9uires a di ersified "ortfolio6 it reduces a risk of loss as com"ared to in esting directl% in one or two s$ares or debentures or ot$er instruments. 2$ile in esting in a "ool of funds wit$ ot$er in estors an% loss6 on one or two securities is also s$ared wit$ ot$er in estors. .$is risk reduction is one

of t$e most im"ortant benefits of a collecti e in estment e$icle like t$e mutual fund.

2&

 $edu3tion of Transa3tion Costs OW$en going t$roug$ a fund t$e in estor $as t$e benefit of economies of scale6 funds "a% lesser cost because of larger olumes6 and t$is benefit is "assed onto its in estors. Li4uidit!5 +n estment in a mutual fund is more li9uid as an in estor can li9uidate t$e in estment6 b% selling t$e unit to t$e fund if o"en5end6 or selling t$em in a market if t$e fund is close5end and collect funds at t$e end of t$e "eriod s"ecified b% t$e mutual fund or t$e stock market. Con)enien3e and F-eAi"i-it! O #utual *und management com"anies offer man% in estor ser ices w$ere in t$e in estor can easil% transfer t$eir $oldings from one sc$eme to t$e ot$er6 get u"dated market information6 and so on.

DISAD+ANTAGES OF M%T%AL F%NDS:

No Contro- o)er 3ost N An in estor in #utual *unds $as no control o er t$e o erall cost in esting as $e "a%s in estment management fees as long as $e remains wit$ t$e fund. >e also "a%s fund distribution costs6 w$ic$ $e would not incur in direct in esting. No Tai-or;1ade #ortfo-ios N+n estors w$o in est on t$eir own can build t$eir own "ortfolios w$ereas in esting t$roug$ funds in ol es delegating t$is decision to t$e fund managers. Managing ,ortfo-io of fund; A ailabilit% of t$e large number of funds can actuall% mean too muc$ c$oice for t$e in estor w$erein $e needs an ad ice on selecting a fund to ac$ie e $is objecti es6 to suit t$e situation w$en $e selects indi idual s$ares or bonds to in est in.

W'o Can In)est In Mutua- Funds In India:

#utual funds in +ndia are o"en to in estment b%< a8 ,esidents including 18 ,esident +ndian +ndi iduals
2)

28 38 48 !8 &8 )8

+ndian (om"anies +ndian .rustsI($aritable +nstitutions 'anks =on5'anking *inance (om"anies +nsurance (om"anies Pro ident *unds

b8 =on ,esidents including 18 =on5,esident +ndians6 and 28 O erseas (or"orate 'odies 7O('s8 and c8 *oreign entities6 i;L 18 *oreign +nstitutional +n estors 7*++s8 registered wit$ S/'+. Foreign 3itiIensJ entities are 'o(e)er not a--o(ed to in)est in Mutua- funds in IndiaC

21

Co1,arison of In)est1ent ,rodu3ts:

+n estor tends to constantl% com"are one form of in estment wit$ anot$er +n estors certainl% look for t$e best returns for different o"tion. >owe er6 to determine w$ic$ o"tion is better6 t$e com"arison s$ould be made in terms of ot$er benefits t$at t$e in estor oug$t to look for in an% in estment.
In)est1ent O"Pe3ti)e E4uit! FI Bonds Cor,orate De"entures Cor,orate FDs Bank De,osits ##F Life Insuran3e Go-d $ea- Estate MutuaFunds Ca,itaa,,re3iation In3o1e In3o1e In3o1e In3o1e In3o1e $isk 3o)er Inf-ation 'edge Inf-ation 'edge Ca,itagro(t' Q In3o1e $eturns ig' Moderate Moderate Moderate Lo( Moderate Lo( Moderate ig' ig' $isk To-eran3e ig' Lo( ig' ig' Genera--! -o( Lo( Lo( Lo( Lo( ig' In)est1ent oriIon Long ter1 Med;-ong Med Med F-eAi"-e Long ter1 Long ter1 Long ter1 Long ter1 F-eAi"-e Li4uidit! ig' Moderate Lo( Lo( ig' Moderate Lo( Moderate Lo( ig'

23

T E FI+E MOST COMMON MISTAKES M%T%AL F%ND IN+ESTO$S MAKE

*ailing to sta% in ested for a longer "eriod 2orr%ing about "ortfolio turno er or di idends it "a%s 'eing affected b% new in t$e market w$en %oure su""osed to be in esting for t$e long term Selling out during bad markets 'eing im"atient and losing confidence too soon.

IN+ESTO$S T INK LONG TE$M B%T ACT S O$T TE$MRCC

Time in the market is more important than timing the market

34

Data Inter,retation of In)estors:

*rom t$e gi en anal%sis we see t$at )!J of t$e in estors do not deal in #utual funds but t$e% still belie e in t$e traditional mode of in estment6 w$ic$ means t$ere still e0ists a $ig$ degree of #utual *und un5awareness among t$e "eo"le. .$erefore focus s$ould be on +n estors education. .$ere is a great di ersit% in t$e "attern of in estment 6 majorit% of "eo"le w$o are mostl% t$e business class "eo"le in est for long term as t$e% look for t$e $ig$ returns and long term ca"ital a""reciation. .$ese "eo"le $a e great ca"acit% to take risk t$e% are called as ,isk .akers 6 w$ile rest in est for s$ort term w$ic$ mostl% com"rise of ser ice class "eo"le w$o go for regularI#ont$l% income "lans i.e. s$ort term benefits. (ustomers w$o are aware of t$e market situations "erfectl% find it futile to in est t$roug$ bank and generall% $ad brokers w$o refund "art of t$e commission to t$em.

31

STANDA$D C A$TE$D E=%IT< F%NDS LOAD ST$%CT%$E

F%ND NAME

L%M S%M MINC AMNT $sC8777C77

LOADS

SI# MINC AMNT

SI# LOAD ST$%CT%$E

SC CLASSIC E=%IT< F%ND FLE@I CA# SC IM#E$IAL E=%IT< F%ND LA$GE CA# SC #$EMIE$ E=%IT< F%ND G$OWT F%ND

Entr! Load; /C/8L EAit Load;NIL Entr! Load; /C/8L EAit Load;.L For . !ear Entr! Load; /C/8L EAit Load;.L For . !ear

$sC .777C77 Entr! -oad;NIL Min:9 1nt's EAit Load; .L For . !ear $sC .777C77 Entr! -oad;NIL Min:9 1nt's EAit Load; .L For . !ear $sC /777C77 Entr! -oad; Min:9 1nt's /C/8L EAit Load; .L For . !ear

$sC8777C77

$sC/8777C77

32

#$OD%CTSJSC EMS OFFE$ED B< STAN;C 5AMC2:

18 Frindla%s Su"er Sa er +ncome *und5 S$ort .erm Plan7FSS+*5S.8 28 Frindla%s Su"er Sa er +ncome *und5 #edium .erm Plan7FSS+*5#.8 38 Frindla%s (as$ *und 7F(*8 48 Frindla%s Fo ernment Securities *und5 +n estment Plan7FFS*5+P8 !8 Frindla%s Fo ernment Securities *und5 S$ort .erm Plan7FFS*5S.8 &8 Frindla%s Fo ernment Securities *und5 P* Plan7FFS*5P*8 )8 Frindla%s D%namic 'ond *und7FD'*8 18 Frindla%s *loating ,ate *und5S$ort .erm Plan 7F*,*5S.8 38 Frindla%s *loating ,ate *und5 ?ong .erm Plan7F*,*5?.8 148 Standard ($artered All Seasons 'ond *und7S(AS'*8 118 Standard ($artered (lassic /9uit% *und7S((/*8 128 Standard ($artered Premier /9uit% *und7S(P/*8 138 Standard ($artered +m"erial /9uit% *und7S(+/*8 148 Standard ($artered /nter"rise /uit% *und7S(//*8 1!8 Standard ($artered Arbitrage *und7S(A*8 1&8 Standard ($artered ?i9uidit% #anager7S(?#8 1)8 Standard ($artered ?i9uidit% #anager Plus7S(?#P8

33

SWOT ANAL<SIS OF STANDA$D C A$TE$ED +IS;A;+IS OT E$ F%ND O%SES Stren!th"#

Brand image. Image of an Ethical player. Brand Reach Prompt service provider. Good relationship with distributors Efficient Sales Staff Fair understanding of mar et and competition.

$eakne""#
Inability to fully cover the outstation mar et !ac of manpower. "vershadowing of #ome !oans.

%pportunit&#
$ne%plored& outstation mar et. 'arget e%port segment aggressively

Threat"# Substitute products li e ban

F(s) R(s etc. *ew entrants

34

< !K 2AC5'<!
#utual *unds and Securities in estment are subject to market risks and t$ere can be assurance or guarantee t$at t$e sc$eme objecti es will be ac$ie ed. As wit$ an% in estment in securities6 t$e =et Asset :alue of Anit issued under t$e Sc$eme ma% go u" or down de"ending on t$e arious factors and farces affecting t$e ca"ital markets. Past "erformance of t$e S"onsors and t$eir affiliates I A#( I #utual *und and its sc$eme do not indicate t$e future "erformance of t$e sc$emes of t$e #utual *und. .$e S"onsors are not res"onsible or liable for an% loss or s$ortfall resulting from t$e o"erations of t$e sc$eme be%ond t$e contribution of ,s 1 lak$ eac$ made b% t$em towards t$e cor"us of t$e #utual *und. As "er S/'+ circular ref. S/'+I+#DI(+, =o. 14I22)41I43 dated December 126 2443 read wit$ circular ref S/'+I+#DI(+, =O. 1I42!23I4! dared Oune 146 244!6 it is s"ecified inter alias t$at eac$ "ortfolio under a sc$eme s$ould $a e a minimum of 24 in estors and no single in estor s$ould account for more t$an 2!J of t$e cor"us of suc$ "ortfolio.

3!

IN+ESTMENT COM#A$ISON S EET

3&

F%ND NAME

E@#C $ATIO L /C /?

F$ONT END LOADL /C /8

BCK END LOADL 7

MIN INITIAL IN+ESTMENT 5$s2 8777

#O$TFOLIO MANAGE$ #$ATEEK MANAGE$ K N SI+A S%B$AMANIAM #$AS ANT *AIN #$AS ANT *AIN DE+EN SANGOI

TEN%$E5<$S2

ABN AM$O O##O$T%NITIES F$ANKLIN INDIA #$IMA DFC #$%DENCE

.C 6.

/C /8

8777

.?

.C M6

/C /8

8777

.0

DFC TO# /77

.C 60

/C /8

8777

ICICI #$% SE$+ICE IND%ST$< $ELIANCE G$OWT S C CLASSIC E=%IT< S C #$EMIE$ E=%IT< S%NDA$AM BN# #A$IBAS SELECT MIDCA# TATA E=%IT< O##O$T%NITIES

/C /9

/C /8

8777

.C M?

/C /8

8777

S%NIL SING ANIA A*A< BODKE

/C /?

/C /8

8777

/C 0M

/C /8

/8777

KENNET AND$ADE N #$ASAD

.C 6M

/C /8

8777

NA

/C /9

/C /8

8777

M +EN%GO#AL

IN+ESTMENT G$A#
3)

70E!5$E75 C'$*A< !'7

E>*E7!E <A5 ' ? "'A= / .., . -., +., + #(F2 'op .++ I2I2I Pru Service Fran lin India Prima #(F2 Prudence Reliance Growth 0B* 01R" opportunities S 2 Premier E3uity S 2 2lassic E3uity Sundaram B*P Paribas '0'0 E3uity "pportunities

E%pense Ratio 4 Front End !oad 4

5'* 11 2U7=!

DESC$I#TON:
12 >ig$ e0"ense ratio means it will affect t$e returns negati el%. 28 ?ong .enure means *und is more trusted.

STATEMENT:
On t$e basis of abo e descri"tion we can state t$at S.A=DA,D (>A,./,/D P,/#+/, /@A+.B *A=D $as $ig$ e0"ense ratio 72.318 and small tenure.2$ile *,A=H?+= +=D+A P,+#A and >D*( P,AD/=(/ $as low e0"ense ratio and long tenure.

#O$TFOLIO COM#A$ISON S EET

31

F%ND NAME

#JE $ATIO ?.C?M

MA$KET CA#5$sC Cr2 M8//C ?/

T%$NO+E$

ASSETS5$sCCr2

TO# 8 OLDINGS 5L2 /?C M.

ABN AM$O O##O$T%NITIES F$ANKLIN INDIA #$IMA DFC #$%DENCE

NA

08/C 8

/MC /6

/9./C 6K

.88C 7/

.869C .?

/KC 9/

0.C 6?

?KK6C 88

.8MC 9M

/8//C ?6

//C 6M

DFC TO# /77

0.C //

/9K99C /?

M7C M9

.6K.C 7.

/8C K/

ICICI #$% SE$+ICE IND%ST$< $ELIANCE G$OWT S C CLASSIC E=%IT< S C #$EMIE$ E=%IT< S%NDA$AM BN# #A$IBAS SELECT MIDCA# TATA E=%IT< O##O$T%NITIES

08C76

?K?/C 6/

NA

9.8C 8.

.MC 66

/6CKM

8097C .M

9.CK8

06/0C 6

.MC 68

0.C /?

/7M..C K/

NA

098C .

/KC 90

?0C 80

.M/.C 86

NA

/8?C /K

/0C 7M

09C 66

/090C 86

8C..

/.8.C 8.

.0C 8?

0?C 0?

9/7KC 08

/C/?

?98C 7?

/.C M6

#O$TFOLIO 5#JE $ATIO2 COM#A$ISON G$A#

33

$A<KE5 CA* ? A!!E5!

*@E <A5 ' ,+ 5+ /+ .+ -+ + 0B* 01R" opportunities Fran lin India Prima #(F2 Prudence #(F2 'op .++ I2I2I Pru Service Reliance Growth S 2 2lassic E3uity S 2 Premier E3uity Sundaram B*P Paribas '0'0 E3uity "pportunities P&E Ratio

/++++ .,+++ .++++ -,+++ -++++ ,+++ + 0B* 01R" Fran lin India #(F2 #(F2 'op I2I2I Pru Reliance S 2 2lassic S 2 Premier Sundaram '0'0 E3uity 0ssets 6Rs. 2r7 1ar et 2ap6Rs. 2r7 5'* 11 2U7=!
5'* 11 2U7=!

DESC$I#TON:
*'<52'" ' C'$*A< !'7

*'<52" 'C'$*A< !'7

#O$TFOLIO 5MA$KET CA#JASSETS2 COM#A$ISON G$A#

44

18 >ig$ PI/ ratio means *und is er% acti el% manage. 28 ?arge #arket (a"itali;ation re eals Organi;ations strong "osition in t$e market as well as Organi;ations long term growt$. 38 ?arge Assets re eals Organi;ations strong financial "osition and S$are$olders Securit%.

STATEMENT:
On t$e basis of abo e mentioned descri"tion we can state t$at S.A.=DA,D (>A,./,/D P,/#+/, /@A+.B *A=D $as $ig$est PI/ ratio but small #arket (a" and Assets.2$ile >D*( P,AD/=(/ $as $ig$ PI/ ratio6 moderate #arket (a" and largest Assets w$ereas A'= A#,O OPPO,.A=+.+/S $as $ig$ PI/ ratio6 largest #arket (a" and low Assets.

#E$FO$MANCE COM#A$ISON S EET

41

F%ND NAME

.;MNT $ET%$N5L2 .9C 89

.;MNT $ANK .7J.K9

9;MNT $ET%$N5L2 /0C ?K

9;MNT $ANK ?J.9?

.;<EA$ $ET%$N5L2 K7C 8M

.;<EA$ $ANK ?J.9.

ABN AM$O O##O$T%NITIES F$ANKLIN INDIA #$IMA DFC #$%DENCE

./C .6

8/J.K9

MC 0.

.0/J.9/

?9C 9M

K9J.9.

KC /0

.MJ.K9

.7C 80

.?J0/

?/C KM

0J.9.

DFC TO# /77

MC ?9

.87J.K9

..C /?

.70J.9?

?0C .9

68J.9.

ICICI #$% SE$+ICE IND%ST$< $ELIANCE G$OWT S C CLASSIC E=%IT< S C #$EMIE$ E=%IT< S%NDA$AM BN# #A$IBAS SELECT MIDCA# TATA E=%IT< O##O$T%NITIES

6C /6

.07J.K9

.?C 6.

8.J.9?

M.C 9?

0J.9.

./C 90

?0J.K9

.MC .6

/?J.9?

97C M/

/.J.9.

./C .

86J.K9

.?C /.

8MJ.9?

??C MK

M?J.9.

.8C .

.MJ.K9

0.C 88

/J.9?

M0C MK

/J.9.

..C K6

9?J.K9

6C.K

./?J.9?

0MC M?

..KJ.9.

..C 8K

9MJ.K9

.9C 89

08J.9?

8.C 86

8/J.9.

#E$FO$MANCE 5$ET%$NS2 COM#A$ISON G$A#

42

*E<2'<$A7CE C'$*A< !'7

;+ :+ 9+ 8+ ,+ 5+ /+ .+ -+ + -<1onth Return647 8<1onth Return647 -<=ear Return647

0B* 01R" opportunities Fran lin India Prima #(F2 Prudence #(F2 'op .++ I2I2I Pru Service Industry Reliance Growth S 2 2lassic E3uity S 2 Premier E3uity

<E5U<7!

5 $E *E< '=A 7 $'75(!@YEA<B

DESC$I#TION:

Sundaram B*P Paribas Select 1idcap

18 >ig$ returns s$ows Organi;ations $ig$ com"etiti eness - "erformance 28 >ig$ rank s$ows its strong "osition among its com"etitors

43

STATEMENT:
On t$e basis of returns < $ET%$NS
.;MONT IG

O$GANISATION
ABN AM$O O##O$T%NITIES

9;MONT

IG

STANDA$D C A$TE$ED #$EMIE$ E=%IT< STANDA$D C A$TE$ED #$EMIE$ E=%IT<

.; <EA$

IG

S.A=DA,D (>A,./,/D P,/#+/, /@A+.B $as bot$ & mont$s and 15%ear $ig$ returns. 2$ile A'= A#,O OPPO,.A=+.+/S $as a 15mont$ $ig$ returns.

44

$ISK Q +OLATILIT< COM#A$ISON S EET

F%ND NAME

F%ND $ISK G$ADE NOT $ATED

STANDA$D DE+IATION NA

S A$#E $ATIO NA

BETA

AL# A

$;S=%A$E

ABN AM$O O##O$T%NITIES F$ANKLIN INDIA #$IMA DFC #$%DENCE

NA

NA

NA

ABO+E A+G LOW

9C //

7C 8

OC K9

.C 70

7C ?M

0C 9M

OC K9

7C M9

.C ?K

7C 90

DFC TO# /77

LOW

8C 06

7C 86

7C 6.

7C 9K

7C 6/

ICICI #$% SE$+ICE IND%ST$< $ELIANCE G$OWT S C CLASSIC E=%IT< S C #$EMIE$ E=%IT< S%NDA$AM BN# #A$IBAS SELECT MIDCA# TATA E=%IT< O##O$T%NITIES

NOT $ATED

NA

NA

NA

NA

NA

A+G

9C /M

7C9?

7C M0

.CK0

7C 8K

NOT $ATED

NA

NA

7C6/

0C?7

NA

NOT $ATED

NA

NA

7CM/

8C90

NA

LOW

8CK

7C K/

7C 96

/C.M

7C ?M

ABO+E A+G

9C/K

7C 8?

7C 6K

7C K0

7C KM

4!

STATEMENT:
'ecause of =on5A ailabilit% of figures for some *unds we cannot gi e an% comment under t$is "arameter. >owe er on t$e basis of a ailable data we can conclude t$at *,A=H?+= +=D+A P,+#A - .A.A /@A+.B OPPO,.A=+.+/S are little risk% funds.

4&

NA+ COM#A$ISON S EET

F%ND NAME

NA+

AS ON

8/ WEEKS IG /9C 8.

AS ON

8/ WEEKS LOW

AS ON

ABN AM$O O##O$T%NITIES F$ANKLIN INDIA #$IMA DFC #$%DENCE

/9C 8.

*%L< .0H 7K

*%L< .0H 7K

.?C 79

.6;Pu-;79

/09C 7?

*%L< .0H 7K

/09C 7?

*%L< .0H 7K

.?6C ?K

/?;Pu-;79

./MC .?

*%L< .0H 7K

./MC .?

*%L< .0H 7K

M8C MM

.6;Pu-;79

DFC TO# /77

./?C M6

*%L< .0H 7K

./?C M6

*%L< .0H 7K

M.C 86

.6;Pu-;79

ICICI #$% SE$+ICE IND%ST$< $ELIANCE G$OWT S C CLASSIC E=%IT< S C #$EMIE$ E=%IT< S%NDA$AM BN# #A$IBAS SELECT MIDCA# TATA E=%IT< O##O$T%NITIES

.MC ..

*%L< .0H 7K

.MC ..

*%L< .0H 7K

6C 0M

.6;Pu-;79

0/?C 7?

*%L< .0H 7K

0/?C 7?

*%L< .0H 7K

.M0C K8

/?;Pu-;79

.MC .K

*%L< .0H 7K

.MC .K

*%L< .0H 7K

..C 8.

/.;Pu-;79

.KC K/

*%L< .0H 7K

.KC K/

*%L< .0H 7K

6C 79

/?;Pu-;79

.70C 0/

*%L< .0H 7K

.70C 0/

*%L< .0H 7K

9MC 6M

/?;Pu-;79

96C 88

*%L< .0H 7K

96C 88

*%L< .0H 7K

?.C M9

/?;Pu-;79

4)

NA+ 5 8/ WEEKS

JL2 COM#A$ISON G$A#

7A0 C'$*A< !'7

7A0A5- CEEK! (@"B /,+ /++ .,+ .++ -,+ -++ ,+ + Fran lin India Prima #(F2 'op .++ I2I2I Pru Service S 2 Premier E3uity #(F2 Prudence Reliance Growth S 2 2lassic E3uity Sundaram B*P Paribas '0'0 E3uity "pportunities 0B* 01R" opportunities

,. >ee s #igh ,. >ee s !ow

5'* 11 2U7=!

DESC$I#TION:
=A:< =et Asset :alue s$ows t$e "er unit alue of a mutual fund unit t$at an in estor is $olding. >ig$I?ow =A: s$ows t$at b% $ow muc$ amount t$e in ested amount is a""reciated or de"reciated.

STATEMENT:
On t$e basis of abo e descri"tion we can state t$at ,/?+A=(/ F,O2.> $as t$e $ig$est all time $ig$ 7!2 weeks $ig$8 =A: 324.44 2$ile S.A=DA,D(>A,./,/D P,/#+/, /@A+.B $as t$e all time low 7!2 weeks low8 =A: 3.4&

41

A2 CO;+A$IANCE E .2 T 5$a;$a 5"ar22B5$P;$P5"ar22Jn;. E 0CM90 /2 T 5$1;$1 5"ar2B5$P;$P5"ar22Jn;. E ?C0?K B2 +A$IANCE 5U/ 2 E 5$P;$P 5"ar2/ 2 TE n;. C2 BETA 5V2 E CO+A$IANCE +A$IANCE .2 STANDA$D C A$TE$ED #$EMIE$ E=%IT< F%ND 5V2 E 7CM/. /2 STANDA$D C A$TE$ED CLASSIC E=%IT< F%ND 5V2 E 7C6/? D2 AL# A 5W2 E .2 STANDA$D C A$TE$ED #$EMIE$ E=%IT< F%ND $a 5"ar2 O V B $P 5"ar2 E 8C906 /2 STANDA$D C A$TE$ED CLASSIC E=%IT< F%ND $1 5"ar2 O V B $P 5"ar2 E 0C?77 E2 STANDA$D DE+IATION 5U2 E 5U2 E S=%A$E $OOT OF +A$IANCE E /C.9M E ?CK70

43

F%ND NAME S C #$EMIE$ E=%IT< F%ND S C CLASSIC E=%IT< F%ND BENC MA$K BSE;/77

+A$IANCE

CO;+A$IANCE 0CM90 ?C0?K

STANDA$D DE+IATION

BETA 7CM/. 7C6/?

AL# A 8C906 0C?77

?CK70

/C.9M

STATEMENT:
On t$e basis of abo e table we can state t$at S ( Premier /9uit% - S ( (lassic /9uit% fund are less risk% in com"arison to t$eir benc$mark inde0 'S/5244 as t$eir 'eta alues are less t$en 1 as well as t$e% also $a e better returns t$en benc$mark inde0 as t$eir Al"$a alues are "ositi e.

!4

SNA#;S OT5ALL 8 #A$AMETE$S2 COM#A$ISON S EET

.2 /2 T;'ig'est on ,ara1eterH ;'ig' on ,ara1eterH

02 A;a)g on ,ara1eter ?2 L;-o( on ,ara1eter H 82 LT; -o(est on ,ara1eterH 92 N$;not rated K2B;"etter t'en ot'ersH M2 X;(orst t'en ot'ersH 62 Y;"est on t'e ,ara1eter

!1

#A$AMETE$S

ABN F$CIND DFC DFC ICICI $ELC S C AM$O #$IMA #$%C TO# SE$+C G$WC CLASSC O##C /77 E=%C

SC SNDC TATAC $EMA$KS #$EC MID E=%C E=%C CA#C O##C

IN+ESTMENT 5E@#C$ATIO2

LT

B5F$H DFCH $EL2 X5S C #$E2

#O$TFOLIO 5#JE $ATIO2

LT

Y5S C #$E2 B5ABNHICICI SNDHTATA2 X5F$CIND2

#$FMNCE 5.;!rC $ET%$NS2

LT

Y5S C #$E2 B5ABNHICICI2 X5SND BN#2

$ISK Q +OLATILIT< 5$ISK G$ADE2

N$

N$

B5ALL LOW $ISK G$ADE F%NDS2

NET ASSET +AL%E 58/;WEEKS G2

Y5$ELG$W2 B5F$CIND2

!2

GENE$AL CATEGO$< COM#A$ISON S EET

F%ND NAME ABN AM$O O##C F$ANKIN INDIA DFC #$%DENCE DFC TO# .77 ICICI #$%CSE$+ $ELIANCE G$OWT S C CLASSIC S C #$EMIE$ SND BN# SELECT MID CA# TATA E=%IC O##C

LA%NC MA$;78 NO+;60 *AN;6? SE#;69 NO+;78 OCT;68 *%L;78 SE#;78 *%L;7/ MA$;70

DATE

CATEGO$< E4uit!: Di)ersified E4uit!: Di)ersified !"rid:E4uit!: Oriented E4uit!: Di)ersified E4uit!: Di)ersified E4uit!: Di)ersified E4uit!: Di)ersified E4uit!: Di)ersified E4uit!: Di)ersified E4uit!: Di)ersified

$ATING NOT $ATED

NOT $ATED

NOT $ATED NOT $ATED

!3

S%GGESTION ON T E BASIS OF LIFE STAGESC

+n a general "ers"ecti e t$ere are 3 basic moti es be$ind $olding t$e cas$ < 18 S"eculati e 28 Precautionar% 38 .ransactional After t$e intense market sur e% on mutual fund in estment is done we $a e bifurcated "eo"le in 2 segments. 2e $a e done bifurcation mainl% on t$e basis of life stages. After sur e% we found t$at "eo"le at t$e age range of 2! %ears to 44 %ears w$o come under t$e income bracket of ,s. 1!444 to ,s. 34444 "er mont$ $a e more risk a""etite and t$e% can easil% take $uge risk because of t$eir s"eculati e be$a ior t$en to t$e "eo"le w$o are at t$e age range of !! %ears and abo e and come under t$e same income bracket 7$owe er "eo"le on t$is edge of t$eir life c%cle are mostl% de"end eit$er on t$eir famil% members or on "ension or on t$eir lifetime sa ings or in estments for e.g ?ife +nsurance6 Post Office sa ings6 'ank sa ings account6 $ouse rent6 *Ds etc.8 $a e less risk a""etite . .$e% dont want to take $ig$ risk on t$eir $ard earned mone% and are $a""% wit$ in estments if it is gi ing conser ati e returns but secure t$eir "rinci"al amount. Also "eo"le at t$e age of !! and abo e are in great need of cas$ in $and because at t$is age most of t$em are done wit$ t$eir in estments. .$erefore t$e% are more interested in in estments w$ic$ can get t$em sufficient cas$ at regular inter als. +n general "eo"le at t$e age range of 2! %ears to 3! %ears are er% s"eculati e6 and because t$e% are earning regular income so t$e% dont need to $old muc$ cas$ in need6 t$e% can also afford t$eir dail% e0"enses er% easil%. .$erefore t$e% are more interested in in estments w$ic$ are little more risk% but can get t$em $andsome returns. As "eo"le at t$is age $a e $uge future needs for e.g $a ing t$eir own $ome and so t$e% also more interested in long term in estments. >ence on t$e basis of t$is sur e% and anal%sis we $a e done abo e we recommend following funds to t$ese 2 segments of in estors.

!4

S%GGESTED F%NDS FO$ BOT

SEGMENTS OF IN+ESTO$S

IN+ESTO$S

ABN F$CINDIA DFC DFC AM$O #$IMA #$%C TO# O##C /77

ICICI $EL #$%C G$WC SE$+C

SC SC CLASC #$EC E=% E=%C

SNDC BN#C SELECT MID CA#

TATA E=%C O##C

BETWEEN /8!C TO 08!

88! Q ABO+E

!!

< !K 2AC5'<!

#utual *unds and Securities in estment are subject to market risks and t$ere can be assurance or guarantee t$at t$e sc$eme objecti es will be ac$ie ed. As wit$ an% in estment in securities6 t$e =et Asset :alue of Anit issued under t$e Sc$eme ma% go u" or down de"ending on t$e arious factors and farces affecting t$e ca"ital markets. Past "erformance of t$e S"onsors and t$eir affiliates I A#( I #utual *und and its sc$eme do not indicate t$e future "erformance of t$e sc$emes of t$e #utual *und. .$e S"onsors are not res"onsible or liable for an% loss or s$ortfall resulting from t$e o"erations of t$e sc$eme be%ond t$e contribution of ,s 1 lak$ eac$ made b% t$em towards t$e cor"us of t$e #utual *und.

!&

BIBLIOG$A# < 1. *act and *igures collected b% S.A=DA,D (>A,./,/D 7A#(8. 2. Pam"$lets collected from S.A=DA,D (>A,./,/D 7A#(8. 3. 222.:A?A/,/S/A,(>O=?+=/.(O# 4.Presentation b% S.A=DA,D (>A,./,/D 7A#(8.

!)