A

Project Report
On
Analysis of Mutual Fund Industries in
India
Project Guide Submitted By
Prof.HARJIT SINGH NANDINI
CHOPRA
(0!SII!""#$
INSTITUTE OF MARKETING & MANAGEMENT
B-11, Marketing Tower, Qutu In!titutiona" Area,
New #e"$i-11%%1&
PREFACE
The significant outcome of the government policy of liberalization in industrial and financial
sector has been the development of new financial instruments. These new instruments are
epected to impart greater competitiveness fleibility and efficiency to the financial sector.
!rowth and development of various mutual fund products in "ndian capital mar#et has
proved to be one of the most catalytic instruments in generating momentous investment
growth in the capital mar#et. There is a substantial growth in the mutual fund mar#et due to a
high level of precision in the design and mar#eting of variety
of mutual fund products by ban#s and other financial institutions$ thereby$ providing growth$
li%uidity and fast & good returns.
"n this contet$ prioritization$ preference building and close monitoring of mutual funds are
essentials for fund managers to ma#e this the strongest and most preferred instrument in
"ndian capital mar#et for the coming years. 'ith the decline in the ban# interest rates$
fre%uent fluctuations in the secondary mar#et and the inherent attitude of "ndian small
investors to avoid ris#$ it is important on the part of fund managers and mutual fund product
designers to combine various elements of li%uidity$ return and security in ma#ing mutual fund
products the best possible alternative for the small investors in "ndian mar#et.
This pro(ect thus aims at studying and analyzing the mutual fund industry of the country.
"t aims at studying the various mutual fund schemes offered by "C"C" )an# and then
Comparing it with the other schemes available in the current mar#et.
"t also aims to study various needs and epectations of small investors from different types of
mutual funds available in "ndian mar#et and identify the ris# return perception with the
purchase of mutual funds.
AC*+',E-!E.E*T
Any research$ report or presentation visible is not the effort of presenter only$ but there are
many others behind the camera who play a very important role and my research and report is
not an eception to this. /o$ in the process of recognizing the efforts of those behind the
scene$ " would li#e to than# director of academics #r' (ra)o* Ku)ar.
First of all " wish to epress my great restitutes to my institute INSTITUTE OF
MARKETING & MANAGEMENT and ICICI Bank 01ana#puri )ranch$ *ew -elhi 2 to
have e%uipped me with the re%uisite s#ill and #nowledge to complete the pro(ect.
'e would li#e to epress our deepest sense of gratitude to our revered guide and mentor Mr.
ar!it Sin"# & Director of research and Placement & Consultancy, #r' A' Nag
for his valuable guidance$ inspiration and encouragement.
+ur efforts in accomplishing this pro(ect are a result of constant motivation and patient
listening support by him. The #nowledge provided by him has been a great value addition for
us and will go a long way in shaping our promising careers.


NAN$INI CO%RA
&'(SII())*


TAB+E OF CONTENT
E,ec-ti.e S-mmar/
Com0an/ %rofi1e
O.er.ie2
istor/
Strate"/ of Bank
%rod-cts and Ser.ices
O3!ecti.e of t#e St-d/
Introd-ction of M-t-a1 F-nd
O.er.ie2
Constit-ents of m-t-a1 f-nd
istor/
C-rrent Scenario of m-t-a1 f-nd ind-str/
Recent trend in m-t-a1 f-nd marketin"
%r-dentia1 ICICI M-t-a1 F-nd
Researc# Met#odo1o"/
Ana1/sis
+imitations
Recommendation and s-""estions
Conc1-sion
Bi31io"ra0#/
Anne,-re
E4ECUTI5E SUMMAR6
Presently "ndian economy is fast moving towards being a service economy with an insurance
sector leading from front. The present government policies of increasing F-" in Financial
sector have opened door for various multinational companies$ the resultant being increased
competition and multiple option in front of "ndian public.
This summer pro(ect is aimed to perform a comparative analysis of .utual fund schemes so
that it become easier to analyze ones financial re%uirements and opt a suitable policy to achieve
financial security. The .utual Fund /chemes of the companies are scrutinized and the cru has
been highlighted.
After a prolong consultation of my guide$ we come to consensus on the topic related to the
performance of mutual fund industries in "ndia. The research was thus been designed so as to
cover all the aspects of the complete study. For this purpose the data was collected from the
unstructured interview of the "C"C" ban#s personnel and the ma(or source for the re%uisite data
was the companies3 fact sheets$ various publication and magazines were also considered for the
re%uired data.
COM%AN6 %ROFI+E
OVERVIEW
"C"C" )an# is "ndia4s second5largest ban# with total assets of about Rs.6$ 787.9: bn and
profit after ta of Rs. ;<.<9 bn for the year ended .arch =6$ ;<<7. 'ith about 7;: branches
and etension counters and ;;<<> AT.3s$ Today "C"C" )A*? ,T- is one of the leading
retail ban#s in "ndia and has positioned itself well behind public sector giant /tate )an# of
"ndia. The policy of more hands to cater more of customers has resulted in good results as
given the consumer awareness level and public fear about the private enterprises it has
established itself a name and a brand which gives the comfort to its customers as that of
public sector ban#.
LIKHITE is a franchisee of "C"C" )an#. Franchisee@ Aes$ these are people who provide
ban#ing services a regular branches in small centers and far5flung settlements where it is not
economically viable for the ban# to set up branches. They receive a share of the profits they
generate$ but also have to share any losses. "t acts as a full5fledged ban#$ offering crop$
housing and automobile loans$ trading in shares and commodities and selling general and life
insurance policies
"C"C" is one of the largest of all "ndian financial institutions$ ban#s and finance companies
in terms of assets. "C"C" hasB
a trac# record of continuous profitability and dividend payments
/ince fiscal 6:97C
close relationships with a client base of over 6$<<< "ndian corporations$ including
most of the 69< largest corporations in "ndia$ and a growing retail base of about =.8
million bondholdersC
long5standing relationships with the government of "ndia and a number of multilateral
and bilateral development4 agenciesC
an independent board consisting of the senior management personnel of leading
"ndian and international commercial enterprises and highly %ualified professionalsC
and
a strong management team with a demonstrated trac# record of managing growth and
capitalizing on new business opportunities over the last few years.
"C"C" provides a wide range of products and services aimed at fulfilling the ban#ing and
financial needs of "ndia4s corporate and retail sectors. "C"C"4s business today consists
primarily of corporate ban#ing activities$ including pro(ect finance$ corporate finance and
wor#ing capital finance. "n the last five years$ it has been offering retail ban#ing services$
including ta#ing retail deposits and offering retail bonds.
"t started offering retail credit products in fiscal 6::: and now offers retail credit products
such as home and automobile loans and other consumer finance products and services. "t
also engages in a number of advisory$ investment and other financial activities.
"t has consistently used technology to differentiate the products and services from those of
its competitors. For eample$ it4s commercial ban#ing subsidiary$ "C"C" )an# was the first
ban# in "ndia to offer "nternet ban#ing. +ther technology5driven products include electronic
commerce5based business5to business and business5to5consumer ban#ing solutions$ web
bro#ering$ cash management services and mobile phone ban#ing services.. To support these
technology initiatives$ it has set up online real time transaction processing systems. "t
remains its focus on changes in customer needs and technological advances and see#s to
remain at the forefront of electronic ban#ing in "ndia.
HISTORY
"C"C" was formed in 6:99 at the initiative of the 'orld )an#$ the government of "ndia and
representatives of "ndian industry. The principal ob(ective was to create a development
financial institution for providing medium5term and long5term pro(ect financing to "ndian
businesses. Dntil the late 6:E<s$ "C"C" primarily focused its activities on pro(ect finance$
providing long5term funds to a variety of industrial pro(ects. "C"C" typically obtained funds
for these activities through a variety of government sponsored and government5assisted
programs designed to facilitate industrial development in "ndia.
'ith the liberalization of the financial sector in "ndia in the 6::<s$ "C"C" transformed its
business from a development financial institution offering only pro(ect finance to a
diversified financial services group offering a wide variety of products and services. As
"ndia4s economy became more mar#et5oriented and integrated with the world economy$ we
capitalized on the new opportunities to provide a wider range of financial products and
services to a broader spectrum of clients. 'e set up independent operations through the
incorporation of subsidiaries and affiliates in the areas of venture capital funding 06:EE2$
asset management 06::=2$ investment ban#ing 06::=2$ commercial ban#ing 06::F2 and
"nternet stoc# trading 06:::2. /imultaneously$ we began diversifying our funding plans away
from complete reliance on government5assisted programs to more mar#et5oriented sources.
"n 6::7$ "C"C" merged into it /C"C" ,imited$ diversified pro(ect finance and shipping
finance lender$ of which "C"C" owned 6:.:G 0including the conversion of partly5convertible
notes of /C"C" into e%uity shares on -ecember 69$ 6::72$ to eliminate overlapping business
activities and to create operational efficiencies. "n 6::8$ "C"C" ac%uired "TC Classic Finance
,imited$ a non5ban# finance company focused on retail deposit ta#ing and corporate finance
with Rs. 6F.< billion 0D/H =;6 million2 in assets$ to create a deposit distribution networ#$
primarily in the eastern part of "ndia. "n 6::E$ "C"C" ac%uired Anagram Finance ,imited$ a
non5ban# finance company primarily in the automobile financing sector$ which had an asset
base of Rs. :.7 billion 0D/H ;;< million2. This was done to support our entry into the retail
asset financing mar#et.
"n .ay 6::F$ when "C"C" obtained its commercial ban#ing license to establish "C"C" )an#$
the Reserve )an# of "ndia imposed a condition that "C"C" reduce its ownership interest in
"C"C" )an# in stages$ first to not more than 89.<G and ultimately to no more than F<.<G. "n
fiscal 6::E$ "C"C" reduced its ownership interest to (ust below 89.<G as re%uired through a
public offering in "ndia. "n .arch ;<<<$ "C"C" )an# completed an e%uity offering in the
form ot A-/s listed on the *ew Aor# /toc# Echange in the amount of D/H 689 million.
After this offering$ "C"C"4s ownership interest in "C"C" )an# was approimately 7;.;G. A
discussion paper issued by the Reserve )an# of "ndia in 1anuary 6::: states that if a long5
term lending institution chooses to provide commercial ban#ing services directly$ permission
to create a 6<<.<G owned ban#ing subsidiary would be considered. "C"C" is presently in
discussion with the Reserve )an# of "ndia to determine whether and to what etent it may
still be re%uired to sell or reduce its interest in "C"C" )an#. "C"C" )an# is legally prevented
from ma#ing loans to "C"C" and is re%uired to maintain an arms length relationship with
"C"C". "n the monetary and credit policy in April ;<<<$ the Reserve )an# of "ndia announced
that it would consider proposals from financial institutions$ li#e "C"C"$ who wish to convert
themselves into ban#s on a case5by5case basis.
'e operate principally through "C"C" and ;9 subsidiaries and two affiliates including our
commercial ban#ing subsidiary$ "C"C" )an#$ and our investment ban#ing subsidiary$ "C"C"
/ecurities and Finance Company ,imited. Together with our subsidiaries$ we operate as a
IuniversalI ban# offering a wide range of products and services to corporate and retail
customers in "ndia.
Dnder the "ndian Companies Act$ "C"C" is designated as a public financial institution. This
status allows us certain funding advantages$ such as greater incentives for commercial ban#s
and nongovernmental provident$ superannuation and gratuity funds to invest in certain
securities issued by public financial institutions. /ee I/upervision and Regulation5Public
Financial "nstitution /tatusI.
S#are #o1din" Str-ct-re and Re1ations#i0 2it# t#e Go.ernment of India.
'e have always operated as autonomous and independent commercial enterprises$ ma#ing
decisions and pursing strategies that are designed to maimize shareholder value and the
"ndian government has never directly held any shares in "C"C" status as a public financial
institution$ "C"C"3s principal shareholders are government5controlled. They include the ,ife
"nsurance Corporation of "ndia$ the !eneral "nsurance Corporation of "ndia and "ts
subsidiaries and the Dnit Trust of "ndia. There is no /hareholders agreement or voting trust
relating to the ownership of the shares owned by the government controlled shareholders.
The composition of "C"C"4s board of directors reflects the principal shareholdings held by
the government5controlled institutions$ the terms of the "ndian government4s credit and
guarantee facilities and the wide public ownership in "ndia. Dnder the terms of the loan and
guarantee facilities provided to "C"C"$ the government of "ndia is entitled to appoint and has
appointed one representative to "C"C"4s board. "n addition to the government5nominated
director$ "C"C" has traditionally invited a representative of the .inistry of "ndustry to be one
of its directors. The government5controlled insurance companies that are "C"C"4s largest
shareholders$ !eneral "nsurance Corporation of "ndia and its subsidiaries and ,ife "nsurance
Corporation of "ndia$ also each have a representative on "C"C"4s board. +f the remaining 66
directors$ the Chairman is the former eecutive chairman of "C"C"$ three are eecutive
directors$ si are from a broad range of industrial companies and one is a professor. /ee
I.anagement5-irectors and Eecutive +fficersI.
"C"C" raised D/H =69 million through an offering of =;.6F million A-/s in /eptember
6:::. "C"C"$ li#e some other "ndian companies$ must obtain the .inistry of Finance4s
approval to raise e%uity in the international mar#ets. "t was a condition of the .inistry of
Finance4s approval for the A-/ offering in /eptember 6::: that the total foreign e%uity
shareholding in "C"C"$ by all possible routes$ may not eceed F:.<G$ that control must rest
with "ndian shareholders$ that investors in the A-/s may not be granted voting rights and
that all of the A-/s will be voted by the depositary in accordance with the direction of the
board of directors. "n accordance with the conditions stipulated by the .inistry of Finance in
its approval of "C"C"4s offering of A-/s$ the depositary has the right to vote on the e%uity
shares represented by the A-/s as directed by "C"C"4s board of directors so as to #eep
management control of "C"C" in the hands of "ndian shareholders. "C"C" does not have any
agreement with its government5controlled shareholders regarding management control$
voting rights$ anti5dilution or any other matter.
To prevent dilution of the ownership of the principal government controlled shareholders
and in light of the government4s desire that control must rest with "ndian shareholders$ "C"C"
offered 7E.9 million e%uity shares to its principal government5controlled shareholders$ the
life "nsurance Corporation of "ndia$ !eneral "nsurance Corporation of "ndia and its
subsidiaries and Dnit Trust of "ndia$ in a private placement on /eptember :$ 6::: and also
offered F6.9 million e%uity shares in a public offering in "ndia from /eptember :56F$ 6:::.
)oth of these offerings were carried out at a price of Rs. 8=.<< per e%uity share$
approimately the mar#et price on August 6:$ 6:::$ the date the board of directors approved
the private placement and the domestic public offering. The holding of foreign investors in
"C"C" increased to FE.=G at year5end fiscal ;<<< from. =7.= G at year5end fiscal 6::8
primarily due to the offering of A-/s in /eptember 6:::. The holding of government5
controlled shareholders declined to.
Strategy of the bank
The liberalization and rapid growth of the "ndian economy has provided us with significant
opportunities to provide superior financial products and services to "ndian companies and the
retail sector.
+ur ob(ective is to enhance our position as "ndia4s premier provider of financial services.
The #ey elements of our business strategy are toB
o focus on %uality growth opportunities byB
- maintaining and enhancing our strengths in corporate
- ban#ingC and
- building a strong retail franchiseC
o emphasize conservative ris# management practices and
- enhance asset %ualityC
o use technology for competitive advantagesC and
o Attract and retain talented professionals.
Maintainin" and En#ancin" o-r Stren"t#s in Cor0orate Bankin"
'e have a trac# record of more than F< years of providing financial products and services to
"ndian companies. 'e en(oy a strong mar#et position in a number of profitable business
segments$ and will continue to see# to gain mar#et share in growth areas such as the
infrastructure and the oil$ gas and petrochemicals sectors. 'e have also built up a significant
presence in the mar#et for shorter5term lending including wor#ing capital finance$ to be able
to offer a more complete range of credit products across varying maturities. +ur focus has
been on structured finance including securitization and customized financing structures
based on capturing the cash flows generated from the borrower4s business. 'e believe this
strategy will help us create a diverse asset base$ achieve stable revenues and lower the ris# to
shareholder returns. 'e continue to develop our epertise in providing value5added advisory
services$ such as pro(ect structuring$ loan and e%uity syndication$ and merger and ac%uisition
services. +ur goal is to provide a comprehensive and integrated service to corporate
treasurers through our relationship managers. 'e aim to increase the cross5selling of our
products and services and maimize the value of our corporate relationships.
Building a Strong Retail
Franchise
"ndia has a large and growing retail customer base estimated at =F million middle and
upper income households$ of which we have identified about si million households as
our target segment based on a certain level of monthly income and residence in selected
urban areas. 'e believe our established brand name$ strong corporate relationships and
retail investor base$ together with the absence of strong mass mar#et players in retail
assets$ provide us with a uni%ue opportunity to build a profitable retail franchise. -uring
fiscal ;<<<$ our personal financial services group$ which loo#s after our retail asset
business$ launched several products to broaden our retail product range$ including
consumer durable finance products and personal loans. "n addition$ we launched credit
cards through our ban#ing subsidiary$ "C"C" )an#. 'e were able to attract over one
million subscribers to our offerings of unsecured redeemable bonds during the year.
'e are building a distribution networ# with multiple outlets to provide our customers
with enhanced choice and convenience. "n addition to epanding "C"C" )an#4s branch
networ#C we have set up a networ# of low5cost mar#eting and servicing outlets called
"C"C" Centers. "n fiscal ;<<<$ we opened 89 such centers$ spread over a geographically
diverse area. )y effectively using technology$ we see# to grow our retail mar#et share
through other low5cost delivery channels$ such as the "nternet and telephone call centers$
providing us with a competitive advantage relative to large branch networ#s
'e opened four call centers during the year$ which are already receiving significant call
volumes. 'e also epanded the range of services offered under "nternet ban#ing$ and
were able to increase our online customer base to about ;<:$<<< customers at August
=6$ ;<<<. 'e will continue to use our strong corporate relationships to epand our base
of high net worth individual and salaried professional customers by use of products such
as IPower PayI$ a corporate payroll management product.
'e believe that our multi5channel distribution networ#$ coupled with the transaction
processing capabilities of our information technology subsidiary$ "C"C" "nfotech
/ervices ,imited$ has allowed us to develop an efficient servicing and collections
infrastructure critical to the success of a retail business. 'e are using the Retail
Customer -ata .art$ a database that consolidates retail customer and product data
across all "C"C" group companies including "C"Cl4s =.8 million retail bond customers.
This data is analyzed for customer segmentation and is used in our targeted mar#eting
campaigns. For eample$ we use this database to determine which high net worth
individuals we should grant our credit cards with pre5approved credit limits. 'e plan to
continue our use of this and similar information systems to enhance customer loyalty
through increased cross selling. Through these initiatives and our stringent credit
standards$ we believe we are well positioned to achieve strong growth in retail ban#ing.
Em0#asi7e Conser.ati.e Risk Mana"ement %ractices and En#ance Asset 8-a1it/
'e believe that conservative ris# management policies$ processes and controls are
critical for long5term sustainable competitive advantages in our business. "C"Cl4s Ris#
.anagement !roup is an independent$ centralized group responsible for establishing
and implementing company5wide ris# management policies$ with an increasing focus on
enhancing asset %uality. 'e will continue to build on our credit ris# management
procedures$ credit evaluation and rating methodology$ credit ris# pricing models$
proprietary analytics and monitoring and control mechanisms. 'e epect to enter new
product mar#ets only after conducting detailed ris# analysis and pilot testing programs.
To reduce ris#$ we are in the process of diversifying our loan portfolio towards shorter5
term loans to highly5rated corporate customers$ structured pro(ect finance and retail
lending. "n addition$ we see# to lower the credit ris# profile of the loan portfolio through
the increased use of financing structures based on a security interest in the cash flows
generated from the business of the borrower and increased collateral$ including
additional security in the form of li%uid assets$ such as investment securities and readily
mar#etable real property. 'e also mitigate pro(ect ris# through the allocation of ris# to
various pro(ect counterparties$ such as construction contractors$ operations and
maintenance contractors and raw material and fuel suppliers$ by entering into rigorous
pro(ect contracts with those counterparties. 'e intend to continue to see# to obtain
conservative collateral positions on productive assets$ such as property$ plant and
e%uipment$ over which we would typically secure first lien status.
.anagement has placed great emphasis on asset %uality and this focus has been
institutionalized across the organization$ with asset %uality parameters being a #ey
factor in employee performance evaluation. 'e believe that our adoption of D/ !AAP$
including its associated provisioning re%uirements$ embodies a more conservative
approach to %uantifying credit losses. 'e believe we are the mar#et drivers in "ndia in
achieving early settlements with troubled borrowers$ thus maimizing our cash flows
from these loans. +ur /pecial Asset .anagement !roup$ which was created to ta#e care
of large non5performing loans and problem loans$ has spearheaded our efforts in this
direction.
Use Technology for Competitive Advantages
'e will continue with our policy of ma#ing substantial investments in technology to
achieve a significant competitive advantage. +ur subsidiary$ "C"C" "nfotech$ will
manage all #ey technology pro(ects.
+ur #ey ob(ectives behind our information technology strategy continue to beB
o building a cost5efficient distribution networ# to accelerate the development of
our retail franchiseC
o widening and deepening our retail franchise by offering our clients business5to5
consumer solutionsC
o enhancing cross5selling and client segmenting capability by using analytical
tools and efficient data storage and retrieval systemsC
o strengthening our corporate franchise by offering our clients business5to business
solutionsC
o improving credit ris# and mar#et ris# managementC and
o "mproving product$ client and business unit profitability analysis to enable
optimal capital allocation.
'e believe that the "nternet has created significant opportunities for financial services
providers to lower costs$ enhance accessibility and improve overall customer service$
convenience and satisfaction.
The #ey elements of our "nternet strategy to capitalize on these opportunities are toB
J 'eb5enable eisting product offerings to create valueC and
J create new business opportunities through the "nternet.
Attract and Retain Talented Professionals
'e believe a #ey to our success will be our ability to continue to maintain and grow a
pool of strong and eperienced professionals. 'e have been very successful in building
a team of talented professionals with relevant eperience$ including eperts in credit
evaluation$ ris# management$ retail consumer products$ technology and mar#eting.
Recruitment is a #ey management activity led by the managing -irector and Chief
Eecutive +fficer of "C"C" and we continue to attract graduates from the premier "ndian
business schools$ having recruited 8= such business graduates in fiscal ;<<<.
+ur management team is committed to enhancing shareholder value and all our
performance targets see# to meet this primary ob(ective. 'e believe we have created the
right balance of performance bonus$ stoc# option and other economic incentives for our
employees so that they will be challenged to aggressively develop business$ achieve
profitability and asset %uality targets and control ris#. "n the last two years$ we have
conducted a comprehensive review of our organizational structure and procedures$
wor#ing with internationally recognized consulting firms. 'e intend to continue to re5
engineer our management and organizational structure to allow us to respond effectively
to changes in the business environment and enhance our overall profitability.
%RO$UCT AN$ SER5ICES
OB9CTI5E OF TE STU$6
This pro(ect aims at studying and analyzing the mutual fund industry of the country. "t aims at
studying the various mutual fund schemes offered by "C"C" )an# and then comparing it with the
other schemes available in the current mar#et.
"t also aims to study various needs and epectations of small investors from different types of
mutual funds available in "ndian mar#et and identify the ris# return perception with the purchase
of mutual funds.
For identifying the needs and epectations of the investors a %uestionnaire has been developed.
The %uestionnaire has been developed on the basis of five attributes. These areB
6. !eneral "nformation 08 %uestions2
;. Ris# Attitude of Customers 0F %uestions2
=. "nvestments in .utual Funds 09 %uestions2
F. Time Korizon 06 %uestion2
9. "nvestment +b(ective 0; %uestions2
The %uestionnaire has been developed and has been filled by the 6<< respondents. This means
that the sample size is 6<<. The data from the %uestionnaire has been segregated. The analysis
part will begin by dividing the data into 9 ma(or components.
These components areB
6. -emographic Attributes li#e age$ "ncome$ *o. +f years until retirement$ epectations
from future earning$ Family /ize and #nowledge of financial products & the financial
mar#et.
;. Ris# Attitude of the customers
=. ,atest "nvestment in .utual Fund E.g. Amount invested in the mutual fund recently$
type of mutual fund$ priority while investing in mutual fund and why mutual funds.
F. Time KorizonB This component has been included in order to identify the time period in
which the customer withdraws his money from the investment made by him.
9. "nvestment ob(ectiveB This will help in identifying the investment ob(ective of the
customer i.e. for travel$ for his children$ for further investment or for availing retirement
benefit.
+n the basis of these components 9 hypotheses have been created. These hypotheses have been
tested using various sophisticated multivariate techni%ues. This would help in identifying
important characteristics being considered by the "ndian investors in the purchase decision
/P// version 6< is used for data analysis.
Thus$ this report enumerates the followingB
'hat are .utual funds
.utual Funds "ndustry in "ndia
Larious /chemes of .utual Funds
Current Trends
Prudential "C"C" .utual Funds
.ethodology Dsed
,imitations while conducting this research
INTRO$UCTION OF MUTUA+ FUN$
OVERVIEW
A .utual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital mar#et instruments such as
shares$ debentures and other securities. The income earned through these investments and the
capital appreciation realized are shared by its unit holders in proportion to the number of units
owned by them. Thus a .utual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified$ professionally managed bas#et of securities at a
relatively low cost. The flow chart below describes broadly the wor#ing of a mutual fundB

MUTUA+ FUN$ O%ERATION F+O: CART
CONSTITUENTS OF MUTUAL FUND
T#ere are man/ entities in.o1.ed and t#e dia"ram 3e1o2 i11-strates t#e or"ani7ationa1 set
-0 of a m-t-a1 f-nd;
The
SEBI 0.ut ual Funds2
Regulations 6::= define a mutual fund 0.F2 as a fund established in the form of a trust by a
sponsor to raise money by the trustees through the sale of units to the public under one or more
schemes for investing in securities in accordance with these regulations.
These regulations have since been replaced by the /E)" 0.utual Funds2 Regulations$ 6::7. The
structure indicated by the new regulations is indicated as under.
A mutual fund comprises four separate entities. These areB /ponsor$ .utual Fund Trust$ A.C
and Custodian.
The sponsor establishes the mutual fund and gets it registered with /E)". The mutual fund
needs to be constituted in the form of a trust and the instrument of the trust should be in the form
of a deed registered under the provisions of the "ndian Registration Act$ 6:<E. The sponsor is
re%uired to contribute at least F<G of the minimum net worth 0Rs. 6< crores2 of the asset
management company. The board of trustees manages the .F and the sponsor eecutes the trust
deeds in favour of the trustees. "t is the (ob of the .F trustees to see that schemes floated and
managed by the A.C appointed by the trustees are in accordance with the trust deed and /E)"
guidelines.
FIG <; FUNCTIONS OF TE 5ARIOUS CONSTITUENTS IN TE
ORGANI=ATION OF MUTUA+ FUN$
HISTORY
The origin of mutual fund industry in "ndia is with the introduction of the concept of mutual
fund by DT" in the year 6:7=. Though the growth was slow$ but it accelerated from the year
6:E8 when non5DT" players entered the industry.
"n the past decade$ "ndian mutual fund industry had seen dramatic improvements$ both %uality
wise as well as %uantity wise. )efore$ the monopoly of the mar#et had seen an ending phaseC the
Assets under .anagement 0AD.2 were Rs. 78bn. The private sector entry to the fund family
rose the AD. to Rs. F8< bn in .arch 6::= and till April ;<<FC it reached the height of 6$9F<
bn. Putting the AD. of the "ndian .utual Funds "ndustry into comparison$ the total of it is less
than the deposits of /)" alone$ constitute less than 66G of the total deposits held by the "ndian
ban#ing industry. The main reason of its poor growth is that the mutual fund industry in "ndia is
new in the country. ,arge sections of "ndian investors are yet to be intellectuated with the
concept. Kence$ it is the prime responsibility of all mutual fund companies$ to mar#et the
product correctly abreast of selling.
The mutual fund industry can be broadly put into four phases according to the development of
the sector. Each phase is briefly described as under.
First %#ase ( >*'?(@A
The Dnit Trust of "ndia 0DT"2 was established in 6:7= by an Act of Parliament. "t was set up by
the Reserve )an# of "ndia and functioned under the Regulatory and administrative control of the
Reserve )an# of "ndia. "n 6:8E DT" was de5lin#ed from the R)" and the "ndustrial -evelopment
)an# of "ndia 0"-)"2 too# over the regulatory and administrative control in place of R)". The
first scheme launched by DT" was Dnit /cheme 6:7F. At the end of 6:EE DT" had Rs.7$ 8<<
crores of assets under management.
Second %#ase ( >*@A(>**< BEntr/ of %-31ic Sector F-ndsC
This was mar#ed by the entry of non5DT" mutual funds. /)" .utual Fund was the first followed
by Can ban# .utual Fund 0-ec E82$ Pun(ab *ational )an# .utual Fund 0Aug E:2$ "ndian )an#
.utual Fund 0*ov E:2$ )an# of "ndia 01un :<2$ )an# of )aroda .utual Fund 0+ct :;2. ,"C in
6:E: and !"C in 6::<. The end of 6::= mar#ed Rs.F8$ <<F as assets under management.
T#ird %#ase ( >**<()&&< BEntr/ of %ri.ate Sector F-ndsC
'ith the entry of private sector funds in 6::=$ a new era started in the "ndian mutual fund
industry$ giving the "ndian investors a wider choice of fund families. Also$ 6::= was the year in
which the first .utual Fund Regulations came into being$ under which all mutual funds$ ecept
DT" were to be registered and governed. The erstwhile ?othari Pioneer 0now merged with
Fran#lin Templeton2 was the first private sector mutual fund registered in 1uly 6::=.The 6::=
/E)" 0.utual Fund2 Regulations were substituted by a more comprehensive and revised .utual
Fund Regulations in 6::7. The industry now functions under the /E)" 0.utual Fund2
Regulations 6::7.
As a result$ at the end of 1anuary ;<<=$ there were == mutual funds with total assets of Rs.
6$;6$E<9 crores. The Dnit Trust of "ndia with Rs.FF$ 9F6 crores of assets under management was
way ahead of other mutual funds.
Fo-rt# %#ase ( since Fe3r-ar/ )&&<
This phase had bitter eperience for DT". "t was bifurcated into two separate entities. +ne is the
/pecified Dnderta#ing of the Dnit Trust of "ndia with AD. of Rs.;:$E=9 crores 0as on 1anuary
;<<=2. The /pecified Dnderta#ing of Dnit Trust of "ndia$ functioning under an administrator and
under the rules framed by !overnment of "ndia and does not come under the purview of the
.utual Fund Regulations.
The second is the DT" .utual Fund ,td$ sponsored by /)"$ P*)$ )+) and ,"C. "t is registered
with /E)" and functions under the .utual Fund Regulations. 'ith the bifurcation of the
erstwhile DT" which had in .arch ;<<< more than Rs.87$ <<< crores of AD. and with the
setting up of a DT" .utual Fund$ conforming to the /E)" .utual Fund Regulations$ and with
recent mergers ta#ing place among different private sector funds$ the mutual fund industry has
entered its current phase of consolidation and growth. As at the end of /eptember ;<<F$ there
were ;: funds$ which manage assets of Rs.69=6<E crores under F;6 schemes.
FIG ?; !R+'TK +F A.D
VARIOUS SCHEMES OF MUTUAL FUNDS
There are a no. of .utual Fund schemes that cater to investor needs$ depending on the age$
financial position$ ris# tolerance and return epectations. The mutual fund schemes can be
classified according to both the investment ob(ective 0li#e income$ growth$ ta saving2 as well as
the number of units 0if these are unlimited then the fund is an open5ended one while if there are
limited units then the fund is close5ended2.
FIG DB LAR"+D/ /CKE.E/ +F .DTDA, FD*-/
Open-Ended Schemes
These funds are sold at the *AL based prices$ generally calculated on every business day. These
schemes have unlimited capitalization$ open5ended schemes do not have a fied maturity 5 i.e.
there is no cap on the amount you can buy from the fund and the unit capital can #eep growing.
These funds are not generally listed on any echange.
These funds have a no. of benefits. These areB
a2 Any time eit option
b2 Ta advantage
c2 Any time entry option
Close Ended Schemes
/chemes that have a stipulated maturity period$ limited capitalization and the units are listed on
the stoc# echange are called close5ended schemes. These schemes have historically seen a lot
of subscription. This popularity is estimated to be on account of firstly$ public sector .Fs
having floated a lot of close5ended income schemes with guaranteed returns and secondly easy
li%uidity on account of listing on the stoc# echanges.
Groth Funds
These funds see# to provide growth of capital with secondary emphasis on dividend. They invest
in shares with a potential for growth and capital appreciation. )ecause they invest in well5
established companies where the company itself and the industry in which it operates are
thought to have good long5term growth potential$ growth funds provide low current income.
Groth and !ncome Funds
!rowth and income funds see# long5term growth of capital as well as current income. The
investment strategies used to reach these goals vary among funds. /ome invest in a dual
portfolio consisting of growth stoc#s and income stoc#s$ or a combination of growth stoc#s$
stoc#s paying high dividends$ preferred stoc#s$ convertible securities or fied5income securities
such as corporate bonds and money mar#et instruments.
Fi"ed#!ncome Funds
The goal of fied income funds is to provide current income consistent with the preservation of
capital. These funds invest in corporate bonds or government5bac#ed mortgage securities that
have a fied rate of return.
Balanced
The )alanced fund aims to provide both growth and income. These funds invest in both shares
and fied income securities in the proportion indicated in their offer documents.
These are ideal for investors who are loo#ing for a combination of income and moderate growth.
Money Market Funds/Liquid Funds
These invest in highly li%uid$ virtually ris#5free$ short5term debt securities of agencies of the
"ndian !overnment$ ban#s and corporations and Treasury
Specialty/Sector Funds
These funds invest in securities of a specific industry or sector of the economy such as health
care$ technology$ leisure$ utilities or precious metals. The funds enable investors to diversify
holdings among many companies within an industry$ a more conservative approach than
investing directly in one particular company.
A summary is presented in the table below of the various funds and their
investment objectives:
TABLE 1
CURRENT SCENARIO OF MUTUAL FUND
The mutual funds industry in "ndia has grown at a strong pace of 67.F per cent for the last E
years which is better compared to the growth rate of the mutual fund industry worldwide$ which
was about 6= per cent for the same period. The "ndian mutual funds industry has Rs ;<F$96:5
crore worth of assets under management as on *ovember =<$ ;<<7$ which is an impressive
growth of =8 per cent from last year$ than#s to the booming e%uity mar#ets in ma(ority of the
countries across the globe.
As on 1une =<$ ;<<7$ the mutual funds globally manage assets worth H67.F6 trillion$ while "ndia
has a small share of <.;; per cent. The huge participation of investors in the *F+s 0*ew Funds
offer2 recently demonstrates the increased acceptance levels of e%uity mutual funds in the
country. As on *ovember =<$ ;<<7 the e%uity assets have increased to almost =7 per cent of the
total "ndian mutual fund assets bringing it close to the global levels. The year ;<<7 is also
important year for "ndian mutual fund investors as many schemes paid ecellent dividends.
Almost :: mutual funds schemes paid dividends to their investors against 89 schemes in year
;<<9.

From the graph we can see the growing importance of .utual Funds.
SCHEME TYE T!ME
H"#!$"%
#!S&
#"'!(E
TY!CA( !%)ESTME%T ATTE#%
"*+ECT!)E "E% C("SE
E,-!TY
./0
1E*T
./0
M"%EYMA#&ET
!%ST2 "THE#S
./0
M"%EYMA#&ET YES %" Short
term
(ow 3 3453 634733
!%C"ME YES YES Medium
8 (on9
Term
(ow to
Medium
3 634
733
3453
:#";TH YES YES (on9
Term
Hi9h 634733 3453 3453
*A(A%CE1 YES YES (on9
Term
Medium
to Hi9h
34 <3 34=3 3453
TA> SA)!%: YES YES (on9
Term
Hi9h 634733 634
733
3453

MUTUA+ FUN$S; RISING SARE OF OUSEO+$ FINANCIA+ ASSETS
RECENT TRENDS IN MUTUAL FUND MARETIN!
The mutual fund industry in "ndia has evolved little over three decades but the real impetus has
come after the changes in the mutual fund regulations in early 6:E<s. Private and foreign mutual
funds are operating in the "ndian mar#et and constitute a substantial portion of the mutual fund
industry.
Today the industry consists of Dnit Trust of "ndia$ mutual funds sponsored by public sector
ban#s and insurance corporations$ private and foreign mutual funds.
"nvestors are constantly being bombarded by %uestions concerning their ris# profile. /uch
investors often invest their money in a guilt fund or money mar#et fund. )an#s li#e Citiban#$
A*M !rind lays$ -eutsche ban#$ Kong ?ong ban#$ Commerze ban#$ )an%ue nationale de Paris$
K-FC ban# and "C"C" )an# are not only aggressively mar#eting funds but have also launched
their own mutual funds.
According to the Reserve )an#3s Currency and Finance report 6::856::E$ the investors3
appetite for ris# has diminished considerably. As much as F7G of the financial savings of the
household sector found its way bac# to ban# depositsC 6;G went in to !overnment savings plans
and 6EG in to provident funds. +nly a miniscule ;G wound up in the capital mar#et and FG in
company deposits.
The mutual fund product designers have identified a strategic gap in the product offering in the
capital mar#et and now are fighting a loosing battle with government savings plans$ ban#
deposits and provident funds. They are providing che%ue facility on money mar#et mutual funds
to ma#e them more enticing and guilt funds for the ris# averse. Product innovations and new
product combinations have started rolling in to the "ndian mar#et. E.g. !"C mutual fund in the
year ;<<< had launched an open5ended scheme named as !"C -3.AT in which 86 demat
scripts having a weight of nearly seventy5 percent in the /ense and the *ifty are being mar#ed
for trading. The specialty of this new product is that investors will have an opportunity to
echange their holdings of scrip$ which are available for dematerialization with units of this
scheme.
A large no. of companies are today launching a no. of mutual funds schemes in order to attract
small investors. And the reason for launching of these large numbers of mutual fund products is
the distributed pattern of investment behavior of "ndian small investor.
The purchase decision of a mutual fund is largely dependant upon investor3s level of savings$
investment pattern and the ris# profile. .any managers are now ta#ing interest in designing
mutual fund products with multi feature options for investors. Customers are often benefited
from the improvements that are offered by new features$ for eample by enhanced %uality
products N!arvin 06:EF2O. These additions of features also offer advantages to others in the value
chain. For the mutual fund agents new features provide new sales arguments in seller buyer
interaction. *ew features do not only infuse single products but also entire product categories
periodically with new lease of life.
The success of a mutual fund and its capacity largely depends on its ability to mobilize funds.
The total funds mobilized by the different mutual funds for the period 6:E85EE to 6:::5;<<< are
depicted in the Table P;.
!ro"" Mob#$#%at#on by M&t&a$ F&n'" (R") Crore*
Year UTI +&b$#,
Se,tor
+r#-ate
Se,tor
Tota$
./01200 .134 560 N7A 585.
./0020/ 4904 48. N7A 4109
./0/2/8 6689 .589 N7A 3180
.//82/. 4.05 5/31 N7A 3.9/
.//.2/5 0303 5608 N7A ..533
.//52/4 ..86. ./10 N7A .485/
.//42/9 /500 401 .690 ..554
.//92/6 0303 .444 .444 ..465
.//62/3 60/. 48. 48. 39/4
.//32/1 /60/ .15 499 .8.86
.//12/0 /..3 499 ./10 ..4/6
.//02// .458. .311 1053 55189
.///25888 /.6/ .690 ./.10 5/095
Source: Web Document at AMFI
TA:LE; 5
The securities scam$ unprecedented boom and the slow down in the economy saw the "ndian
stoc# mar#et enter through a prolonged phase of instabili;ty. Therefore investor3s preferences
shifted from e%uity funds to fied income and debt instruments.
"n 01an5.arch2 ;<<6 Quarter the /ense oscillated between a low of =F=7.89 and a high of
FF7;.66. The investment in -ebt funds during this time has gone up.
-ue to the reduction in the interest rate in D/A the "ndian bond mar#et rallied in epectation of
a similar cut$ debt funds staged a come bac#.
"nvestors realize that an interest rate cut reduces the mar#et yield and hence$ increases the
demand for long5term debt papers bearing high coupon rates.
The average annualized return for the %uarter in debt funds was 6F.7F$ which were much higher
than the returns posted by any other debt based investment instruments on a post ta basis.
The change in preference from e%uity to debt related instruments during that period can be seen
in Table5=
CKA*!E "* PREFERE*CE
a""et" .//8 .//4 .//3 .///
E<&#ty
F&n'"
5.)/ 94)00 .0)85 5.)/5
Debt
F&n'"
69).1 5/)/. 4/)31 90)41
M#=e'
F&n'"
(e<&#ty>
'ebt*
59)1 53)5 4/)/. 56)5/
Money
?arket7
L#<&#'
F&n'"
8 8 8 5).1
Source$ The %conomic Times& 'anuary (& )***
1920
1940
1960
1980
2000
2020
2040
2060
2080
2100
2120
1 2 3 4
Money market/ Liquid
Funds
Mixed Funds (equity+
det!
"et Funds
#quity Funds
assets
TABLE 3
The new mutual fund product launches had seen many of the e%uity based funds in the mar#et
during this period$ primarily to attract investors who would li#e to ta#e advantage of the low
prices in the stoc# mar#et but ma(ority of the funds launched were debt funds. The budget has
also supported the cause of debt fund rather than e%uity due to a lower dividend distribution ta.
The investors hesitate to invest in the e%uity fund when the mar#et is down but the mar#eting
and distribution cost of these incurred during this period does not reflect a rise in the investors3
choice.
As a product manager one is ought to design mutual fund products$ which shall combine an
optimal mi of return$ ris# li%uidity and safety for the small investors.
Advantages of Investing in Mutual Funds
Professional Money Management & Research
.utual funds are managed by professional fund managers who regularly monitor mar#et trends
and economic trends for ta#ing investment decisions. They also have dedicated research
professionals wor#ing with them who ma#e an in depth study of the investment option to ta#e
an informed decision.
Ris !iversification
-iversification reduces ris# contained in a portfolio by spreading it. "t is about not putting all
your eggs in one bas#et. As mutual funds have huge corpuses to invest in$ one can be part of a
large and well5diversified portfolio with very little investment.
"onvenience
'ith features li#e dematerialized account statements$ easy subscription and redemption
processes$ availability of *ALs and performance details through (ournals$ newspapers and
updates and lot moreC .utual Funds are sure a convenient way of investing.
Li#uidity
+ne of the greatest advantages of .utual Fund investment is li%uidity. +pen5ended funds
provide option to redeem on demand$ which is etremely beneficial especially during rising or
falling .ar#ets.
Reduction in "osts
.utual funds have a pool of money that they have to invest. /o they are often involved in
buying and selling of large amounts of securities that will cost much lower than when you invest
on your own.
Ta$ Advantages
"nvestment in mutual funds also en(oys several ta advantages. -ividends from .utual Funds
are ta5free in the hands of the investor 0This however depends upon changes in Finance Act2.
Also$ capital gain accrued from mutual funds investments for period of over one year is treated
as long term capital appreciation and is taed at a lower rate of 6<G without benefit of
indeation or ;<G with benefit of indeation.
%ther Advantages
"ndian .utual fund industry also presents several other benefits to the investor li#eB
transparency 5 as funds have to ma#e full disclosure of investments on a periodic basis$
fleibility in terms of needs based choices$ very well regulated by /E)" with very strict
compliance re%uirements to investor friendly norms.
!I&A!'A(TA)E& %F M*T*AL F*(!&
The following are important disadvantages of investing through mutual fundsB
NO CONTRO+ O5ER COSTS B
/ince investors do not directly monitor the funds operations they cannot control the costs
effectively. Regulations therefore usually limit the epenses of mutual funds.
(% TAIL%R MA!E P%RTF%LI%& :
.utual fund portfolios are created and mar#ed by A.Cs$ into which investor invest. They
cannot create tailor made portfolios.
MA(A)I() A P%RTF%LI% %F F*(!& :
As the number of mutual funds increases in order to tailor a portfolio for him$ an investor may
be holding a portfolio of funds with the cost of monitoring them and using them$ being incurred
by him.
RISK FACTORS OF IN5ESTMENTS IN MUTUA+ FUN$S

.utual funds li#e securities investments are sub(ect to mar#et and other ris#s and there
can be no assurance that the ob(ectives of any of the schemes of the Fund will be
achieved.
The *AL of units issued under the /chemes can go up or down depending on the factors
and forces affecting capital mar#ets and may also be affected by changes in the general
level of interest rates.
The past performance of the mutual funds managed by the /ponsors and their affiliatesR
associates is not necessarily indicative of the future performance of the schemes.
The /ponsors are not responsible or liable for any loss resulting from the operation of the
schemes beyond the initial contribution of an amount of Rs.6 la#h made by the /ponsors
towards setting up the Fund or such other accretions and additions that may be made to
the initial corpus set up by the /ponsors.
The li%uidity of the /cheme4s investments may be restricted by trading volumes
settlement periods and transfer procedures. "n the event of an inordinately large number
of redemption re%uests or of a restructuring of any of the /chemes4 portfolios$ the time
ta#en by the Fund for redemption of units may become significant. "nvestors are also
re%uested to peruse the Ris# Factors and /pecial Considerations. Right to ,imit
Redemptions in the +ffer -ocuments of the respective schemes of the Fund.
The Risk-Return Trade-off
The most important relationship to understand is the ris#5return trade5off. Kigher the ris# greater
the returnsRloss and lower the ris# lesser the returnsRloss.
Kence it is up to you$ the investor to decide how much ris# you are willing to ta#e. "n order to do
this you must first be aware of the different types of ris#s involved with your investment
decision.
Market Risk
/ometimes prices and yields of all securities rise and fall. )road outside influences affecting the
mar#et in general lead to this. This is true$ may it be big corporations or smaller mid5sized
companies. This is #nown as .ar#et Ris#. A /ystematic "nvestment Plan 0S/"PT2 that wor#s on
the concept of Rupee Cost Averaging 0SRCAT2 might help mitigate this ris#.
Credit Risk
The debt servicing ability 0may it be interest payments or repayment of principal2 of a company
through its cash flows determines the Credit Ris# faced by you. This credit ris# is measured by
independent rating agencies li#e CR"/", who rate companies and their paper. A UAAA3 rating is
considered the safest whereas a U-3 rating is considered poor credit %uality. A well5diversified
portfolio might help mitigate this ris#.
Inflation Risk
"nflation is the loss of purchasing power over time. A lot of times people ma#e conservative
investment decisions to protect their capital but end up with a sum of money that can buy less
than what the principal could at the time of the investment. This happens when inflation grows
faster than the return on your investment. A well5diversified portfolio with some investment in
e%uities might help mitigate this ris#.
Interest Rate Risk
"n a free mar#et economy interest rates are difficult if not impossible to predict. Changes in
interest rates affect the prices of bonds as well as e%uities. "f interest rates rise the prices of
bonds fall and vice versa. E%uity might be negatively affected as well in a rising interest rate
environment. A well5diversified portfolio might help mitigate this ris#.
Political/Government Policy Risk
Changes in government policy and political decision can change the investment environment.
They can create a favorable environment for investment or vice versa.
Liquidity Risk
,i%uidity ris# arises when it becomes difficult to sell the securities that one has purchased.
,i%uidity Ris# can be partly mitigated by diversification$ staggering of maturities as well as
internal ris# controls that lean towards purchase of li%uid securities.
Aou have been reading about diversification above$ but what is it@

T+PE& %F M*T*AL F*(! &",EME&
'ide variety of .utual Fund /chemes eists to cater to the needs such as financial position$
ris# tolerance and return epectations etc. The table below gives an overview into the eisting
types of schemes in the "ndustry.

T%P 1- %PE( E(!E! .E/*IT+ F*(!& PERI%!
0LA&T 1 M%(T,&2
Ran &cheme (ame !ate
(A'
0Rs32
4 Return
as on (A'
date
7 Taurus (ibra Ta? shield
Sept 5@ A
533<
7BC@ =3C<5@
5 Sundaram Ta? saver
Sept 5@ A
533<
7@CD@5= B5CB63E
B Taurus 1iscovery StocF
Sept 5@ A
533<
6C76 B3C5@=6
=
rudential !C!C! Ta?plan 4
:rowth
Sept 5@ A
533<
BEC3@ B3C7<<D
@
rudential !C!C! Ta?plan 4
1ividend
Sept 5@ A
533<
76CDB B3C7@E6
<
rudential !C!C! 1ynamic
lan 4 :rowth
Sept 5@ A
533<
5BC<3E@ B3C3@7E
D
rudential !C!C! 1ynamic
lan 4 1ividend
Sept 5@ A
533<
73C7D6E B3C33D
6
S*! Ma9num :lobal 'und
E=
Sept 5@ A
533<
7BCE= 5EC666D
E Canbonus
Sept 5@ A
533<
7@CE@ 5EC<D=6
73
Alliance *uy !ndia 'und 4
1ividend
Sept 5@ A
533<
77C6B 56C@6D
FRE/*E(TL+ *&E! TERM&5

(et Asset 'alue 0(A'2
*et Asset Lalue is the mar#et value of the assets of the scheme minus its liabilities. The per
unit *AL is the net asset value of the scheme divided by the number of units outstanding on
the Laluation -ate.

&ale Price
"s the price you pay when you invest in a scheme. Also called +ffer Price. "t may include a sales
load.
Re6urchase Price
"s the price at which a close5ended scheme repurchases its units and it may include a bac#5end
load. This is also called )id Price.

Redem6tion Price
"s the price at which open5ended schemes repurchase their units and close5ended schemes
redeem their units on maturity@ /uch prices are *AL related.

&ales Load
"s a charge collected by a scheme when it sells the units@ Also called$ UFront5end3 load.
/chemes that do not charge a load are called U*o ,oad3 schemes.

Re6urchase or 7Bac.end8 Load
"s a charge collected by a scheme when it buys bac# the units from the unit holders.
CR"/",3s composite performance ran#ing 0CPR2 measures the performance for each of the open
ended schemes of mutual fund. There are four parameters considered to measure the
performance of a mutual fund such as Ris# ad(usted returns of the schemes$ *AL$
-iversification of portfolio$ ,i%uidity and Asset size. Today$ mutual funds collectively manage
almost as much as or more money as compared to ban#sC
Bans v9s Mutual Funds
BANKS MUTUA+ FUN$S
Returns ,ow )etter
Administrative ep.
Kigh ,ow
Ris# ,ow .oderate
"nvestment options
,ess .ore
*etwor# Kigh penetration ,ow but improving
,i%uidity
At a cost )etter
Quality of assets *ot transparent Transparent
"nterest calculation .inimum balance between
6<th. & =<th. +f every
month
Everyday
!uarantee .aimum Rs.6 la#h on
deposits
*one
FACT+RS AFF%CT!,G T-% ,A. +F A FU,/
Following are the ma(or factor that affects the *AL of a fundB
/ale and purchase of securities.
/ale and repurchase of units.
Laluation of assets.
Accrual of income and epenses.
The *AL of a fund is primarily affected by the mar#et value of the investment portfolio. The
number of units outstanding$ the accrual of epenses and income$ are other factors that impact
the *AL of a fund.
%RU$ENTIA+ ICICI MUTUA+ FUN$
ABOUT TE COM%AN6;
Prudential "C"C" Asset .anagement Company$ 0F:GB 96G2 is a (oint venture between
Prudential Plc$ D?4s leading insurance company and "C"C" )an# ,td$ "ndia4s premier financial
institution.
The (oint venture was formed with the #ey ob(ective of providing the "ndian investor mutual
fund products to suit a variety of investment needs.
The A.C has launched a range of products to suit different ris# and maturity profiles.
Prudential "C"C" Asset .anagement Company ,imited has a net worth of about Rs. E<.6F crore
06 crore V 6< million2 as of .arch =6$ ;<<F.
S%ONSORS;
/ponsors the Prudential "C"C" Asset .anagement Company areB
"C"C" )an# ,td.
Prudential
The Fund .anager for Pru"C"C" is .r. *ilesh /hah.
5ARIOUS FUN$S
Pru"C"C" offers funds in three categories. These areB
E%uity Funds
)alanced Funds
-ebt Funds
E8UIT6 FUN$S
E%uity funds see# to provide maimum growth of capital with secondary emphasis on dividend
or interest income. They invest in common stoc#s with a high potential for rapid growth and
capital appreciation. The various features areB
An e%uity fund gives an eposure to the stoc# mar#et.
The fund has long5term growth potential but provides low current income.
They are not suitable for investors who are ris# averse
The funds offered under this category are the Prudential "C"C" !rowth Plan$ Prudential "C"C"
F.C! Fund$ Prudential "C"C" Technology Fund$ Prudential "C"C" Ta Plan$ Prudential "C"C"
"nde Fund$ Prudential "C"C" Power$ Prudential "C"C" -ynamic Plan$ Prudential "C"C"
-iscovery Plan$ Prudential "C"C" Emerging /.T.A.R. Fund$ Prudential "C"C" "nfrastructure
Fund and Prudential "C"C" /ervices "ndustries Fund.
BA+ANCE$ FUN$S
)alanced funds are more evenly invested in e%uities and income securities. )alanced and e%uity5
income funds are suitable for conservative investors who want high current yield with some
growth.
"t helps in generating long5term capital appreciation and current incomeC an investment in the
balanced fund would be ideal. "t gives you an eposure to the stoc# mar#et without the entire
ris# of the stoc# mar#et.
The funds offered under this category are the Prudential "C"C" )alanced Fund$ Prudential "C"C"
Child Care Plan and Prudential "C"C" )lended Plan.
$EBT FUN$S
The goal of fied income funds is to provide high current income consistent with the
preservation of capital. !rowth of capital is of secondary importance. These funds invest in
corporate bonds or government securities that have a fied rate of return. The funds are suitable
for investors who want to maimize current income and who do not wish to assume a high
degree of capital ris# in order to do so. /ince bond prices fluctuate with changing interest rates$
there is some principal ris# involved despite the fund4s conservative nature.
The funds offered under this category are the Prudential "C"C" "ncome Plan$ the Prudential
"C"C" !ilt5Treasury Fund$ The Prudential "C"C" !ilt5"nvestment Fund$ Prudential "C"C" ,i%uid
plan$ Prudential "C"C" Fied .aturity Plan$ Prudential "C"C" /hort Term Plan$ Prudential "C"C"
,ong Term Plan$ Prudential "C"C" /weep Plan$ Prudential "C"C" "ncome .ultiplier Fund$
Prudential "C"C" .onthly "ncome Plan$ Prudential "C"C" Fleible "ncome Plan$ Prudential
"C"C" !ilt Fund PF +ption$ Prudential "C"C" ,ong Term Floating Rate Plan and Prudential
"C"C" Floating Rate Plan.
RESEARC METO$O+OG6
>. 8UESTIONNAIRE;
The study is based on a survey of 6<< respondents through a %uestionnaire covering different
groups of investors
Sam01e Si7eE NF>&&
'ith the help of this pro(ect$ " have attempted to study various needs and epectations of small
investors from different types of mutual funds available in "ndian mar#et and identify the ris#
return perception with the purchase of mutual funds.
Larious sophisticated multivariate techni%ues li#e Factor Analysis$ Chi /%uare Test etc. will
then be applied to identify important characteristics being considered by the "ndian investors in
the purchase decision.
The %uestionnaire has been developed on the basis of five ma(or components. These areB
6. -emographic Attributes li#e age$ "ncome$ *o. of years until retirement$ epectations
from future earning$ Family /ize and #nowledge of financial products & the financial
mar#et.
;. Ris# Attitude of the customers
=. ,atest "nvestment in .utual Fund E.g. Amount invested in the mutual fund recently$
type of mutual fund$ priority while investing in mutual fund and why mutual funds.
F. Time KorizonB This component has been included in order to identify the time period in
which the customer withdraws his money from the investment made by him.
9. "nvestment ob(ectiveB This will help in identifying the investment ob(ective of the
customer i.e. for travel$ for his children$ for further investment or for availing retirement
benefit.
$emo"ra0#ic Attri3-tes
The various demographic attributes li#e Age$ "ncome$ and *o. +f years till retirement$ Family
size$ #nowledge of finance influence the decisions being made by the investors while investing
in .utual Funds.
Risk Attit-de of C-stomers
This component has been included in order to identify the proimity of a person to ta#e ris#
while investing. An analysis of this section would help in identifying the needs and epectations
of small investors #eeping in mind their ris# attitude.
T#e section 2o-1d #e10 in ans2erin" t#e fo11o2in" section;
Choices made while investing big amounts 0W Rs.9<<<<2
/ustainability of a customer to invest in share mar#et when the mar#et is not performing
very well
+atest In.estment In M-t-a1 F-nds
This section would help in identifying the latest investment done by a particular customer in the
last one year.
This section would help in identifying the followingB
Amount invested in .utual Funds$ /hares$ Fied -eposits$ !ovt. securities etc.
The mutual funds the customers have invested in currently available in the mar#et
Priority while investing in .utual Funds. E.g. for some investors the current *AL must
be a criteria. For some li%uidity and loc# in period must be a criteria
'hat are the ma(or benefits that the customers get while investing in a mutual fund
Time ori7on & In.estment O3!ecti.e
This section would help in identifying the followingB
The time period of the investment
Their epectation of the money after 6< years
The future use of their investment
After how many years will they start using their money
Thus$ data collection from the various customers has been done with the help of
%uestionnaires.
). TE+E%ONIC INTER5IE:S
The summer pro(ect also helped me in gaining an eperience to sell the various mutual fund
schemes over the telephone. "t only helped me improve my communication s#ills but also gave
me an in depth #nowledge about the various schemes offered by "C"C"$ K-FC$ K/)C$ Fidelity$
etc.
This would further help me in doing a sophisticated and detailed comparison between the
various schemes.
<. A%%OINMENTS :IT COM%ANIES
The pro(ect also gave me an opportunity to fi appointments with corporate organization and
allowed me to eplain the various products to the company officials.
The various organizations covered wereB
+M+*E PKAR.ACEDT"CA,/$ A.)"?A P",,A"3s )eauty /aloon$ AP+,,+ Clinic etcX
The data from such organization has also been collected.
?. NE:S%A%ER ARTIC+ES
The preparation of the pro(ect report also re%uired data from various (ournals$ newspapers etcX
-ata from the various newspapers 0li#e The Economic Times$ The Times +f "ndia etc..2 and
(ournals has been done.
D. CO++ECTION OF $ATA FROM OTER AMCs
The preparation of the pro(ect report re%uired me to visit the various other companies li#e
K-FC$ ,"C$ and /tandard Chartered etc. in order to collect data.
ANA+6SIS
Following graph shows the factors influencing the decision of a person
to invest into mutual funds.
Above factors have been evaluated on a scale of 6<. *umber U63 means least aware and number
U6<3 means most aware.
"t is observed from the survey that people generally come to #now about the investment options
through news papers and magazines. .ass media options li#e television and radio options are
also coming up but still a lot of promotional campaign is to be done to ma#e this channel an
effective one.
)anners and hoardings are used for advertisements in big cities only so their rating is low as
compared to other channels. These options are mainly present in front of any financial institution
li#e ban# etc for instant appeal.
FCT!R" I#FL$%#CI#G I#&%"TM%#T I# M$T$L
F$#'"
Friends/Fam
i$y/%e$ati&es
'
(e)s*a*er/
Ma+a,ines
9
-. / %adio
'
/anners /
0oardin+s
3
Fo11o2in" "ra0# s#o2s t#e re1ations#i0 3et2een ann-a1 income and t#e t/0e of in.estment
made
0
10000
20000
30000
40000
'0000
60000
10000
80000
90000
Mutua$
Funds
23ares Fixed
"e*osits
4nsuran5e
6nder -%s100000 10
%s7100000 - 200000 26
%s7200001-'00000 46
%s7'00001-1000000 12
8&er%s71000000 6
Income "ro-0 3e1o2 > 1ak#sB
This category invest ma(or amount into ban#3s F- or post office schemes. They do not go for
e%uity related investments because of fund shortage. Although insurance is given some weight
age but it is generally life insurance without investment options. *ow it is observed that this
segment has also started investing into mutual funds although it is a small investment.
Income "ro-0 3et2een > ( ) 1ak#s;
This category invest ma(or amount into ban#3s F- or bonds. They also don3t go for e%uity
related investments because of fund shortage. Although insurance$ shares and mutual funds are
given some weight age but it is generally life insurance without investment options.
Income "ro-0 3et2een ) G D 1ak#s;
This category3s ma(or area of investment is in mutual funds and insurance. /ince they have
enough disposable income so considerable amount is invested into e%uity related funds. An
investment in ban# F-s is made automatically since the salary comes in the account otherwise
no specific direct investment is made into such options. )y increasing the awareness about .F
they can be potential customers.
Income "ro-0 3et2een D G >& 1ak#s;
They have enough disposable income so ma(or investment is made into both e%uity and mutual
funds. "nsurance is also given due weight age but with the e%uity related options for better
returns. They are updated with the features so thorough #nowledge is needed before advising
them any fund.
Income "ro-0 a3o.e >& 1ak#s;
They too have enough disposable income so ma(or investment is made into both e%uity and
mutual funds. This category also demands for portfolio facility. They are important customers so
specific relationship eecutives are assigned to them. They are continuously updated about new
fund schemes.

Fo11o2in" "ra0# descri3es t#e re1ations#i0 3et2een t#e a"e and t#e o0tions
Under a"e "ro-0 <&;
"n this age group it was observed that customers give importance to all factors but much
importance is given to Professional .anagement. "t is also perceived that the money invested is
diversified so it less ris#y
Under a"e "ro-0 <>(?& /ears B
This age group people lay stress on both Professional .anagement and time saving option.
Under a"e "ro-0 ?>(D& /ears;
People under this category people start planning for retirement so they loo# for time saving
option to be a better one. .oreover they also start see#ing for Ta benefitC
0
'
10
1'
20
2'
6nder
30
31-40 41-'0 '1-60 8&er 60
-ax /ene9it 26
:ro9essiona$
Mana+ement 9
Less -ime ;onsumin+
16
"i&ersi9i5ation <nd -3us
Less %isky 1
<$$ -3e <o&e 42
Under a"e "ro-0 D> ( '& /ears;
The inclination of people is more on Ta )enefit as ris# ta#ing capacity is low and most of the
#nowledge ac%uired by them is through newspapers and (ournals etc. time saving option is also
considered.
Under a"e "ro-0 '&;
As this category people don3t have their regular income so they go for Ta benefit only
.Kowever they want returns early so time saving is also ta#en into consideration. .oreover
people are averse to ta#e ris# so they feel li#e investing in !overnment /ecurities also.
Fo11o2in" "ra0# descri3es t#e re1ations#i0 3et2een t#e a"e and t#e kind of in.estments
0eo01e make;
0
1
2
3
4
'
6
1
8
9
10
6nder
30
31-40 41-'0 '1-60 8&er 60
(e
I
n
v
e
s
t
m
e
n
t
s
/ank "e*osits and
/onds 1'
Mutua$ Funds 1'
23ares 13
;omination o9
/anks=F"s=/onds 2'
;omination o9 Mutua$
Funds and 23ares 32
;omination o9 Mutua$
Funds and 23ares 32
A"e "ro-0 -nder <&;
,argely investment is made into mutual funds and shares. This age group has large disposable
income and is therefore ready to ta#e the ris#. "t is also observed that still ban# fied deposits are
made by this age group$ because they have salary account so F-3s are created. Company bonds
are also a preferred option.
A"e "ro-0 <> G ?& /ears:
This age group lay stress on both the returns and ta planning. For ta purpose it is observed that
Sunit lin#ed investment plans are preferred as they also provide the insurance cover. Their
investment into mutual funds and shares is less in comparison t previous age group.
A"e "ro-0 ?> G D& /ears;
"n this age group inclination towards )an# F-s$ )onds and mutual fund has increased. The
reason observed is in this age group$ people start planning for their retirement.
A"e "ro-0 D> ( '& /ears; "n this age group inclination towards )an# F-s$ )onds has increased
and .utual Funds has decreased. The reason observed is in this age group $people are
almost near to retirement and plan to spend their money on travel and leisure
A"e "ro-0 -nder '& /ears; "n this age group people start investing in )an#s F-s $ as it is
believed to be the safer options with fi returns. "t was also found that almost none
were interested for investment in shares because of perception of ris#y mar#et trend
Following graph shows the preferences of the customer while selecting for investment in
any .utual Fund company
0
10
20
30
40
'0
60
6-4 Mutua$ Fund
2/4
2tandard ;3arted Mutua$
Fund
Frank$in -em*$eton
02/; Mutua$ Fund
Fide$ity #quity Fund
:rudenti$ 4;4;4 Mutua$
Fund
</( <mro
%e$ian5e
"t is observed from the survey that people generally give much preference to invest in Prudential
"C"C" .utual Fund. "t is observed that Prudential "C"C" has outperformed every other fund with
annual return of 6<<.F;G for the past 6 year and DT" is least performing fund with return of
9<.6;G for past = years. Prudential "C"C" .utual Fund invest in ;; sectors and DT" invest in 6F
sectors still it is giving higher returns which attracts the customers to invest more in it.
Fran#lin Templeton is considered to be the second best company for investment purpose. /trong
F"" flows along with inflows from domestic investors helped the "ndian e%uity mar#ets close the
%uarter and the financial year on a strong note. "t is drastically increasing its portfolio. The main
additions to the portfolio have been TC/$ Kindustan ,ever$ 1et Airways$ -r.Reddy3s$ Dnion
)an# of "ndia. The eposure to the company in sectors li#e metals$ auto and cement has gone
up. The company is continuously earning profit and giving good returns. /tandard Charted
.utual Fund and K/)C .utual Fund are also giving good returns so people are highly satisfied
with both of the company3s.
Fo11o2in" "ra0# s#o2s t#at #o2 0eo01e of different a"e "ro-0 -se t#eir mone/ from
in.estment.
0
2
4
6
8
10
12
14
6nder
30
31-40 41-'0 '1-60 8&er 60
-ra&e$ or Leisure 16
;3i$d (edu5ation or
marria+e! 30
Furt3er in&estments 34
%etirement /ene9it 20
Under a"e "ro-0 <&;
This age group of people generally does have large disposable income and they are willing to
ta#e higher ris# as such they #eep themselves updated with the prevailing mar#et trends so they
use their money for further investments. "t was also found that they spend in Travel or ,eisure.
Under a"e "ro-0 <> ( ?&;
This age group of people gives least importance to travel and leisure but they show their interest
in investments
Under a"e "ro-0 ?> ( D& B
This age group of people not only is interested in further investments and travel but they start
investing for their child education or marriage. They are found to have %uite proficient
#nowledge of finance and can ta#e ris# so they utilize their money for further investment.
Under a"e "ro-0 D> ( '&;
People of this age group start planning for retirement so they are not very much interested in
further investments in mutual funds. )ut they prefer to go for investing in F-s and life
insurance.
O.er '&;

'hile having interaction with the people of this age group most of them responded that they
would li#e to spend their earnings on travel and leisure .They don3t go for further investments<
as they already relieve from the burdens of life.
+IMITATION
T#e .ario-s 1imitations of t#e st-d/ are;
Conservative attitude of the customerB
The "ndian investor is beginning to reconsider mutual funds as a possible investment avenue.
The current perception of the investor is that in general$ mutual funds are
o Ris#y investments
o Kave high costs
Collection of data from other A.Cs
Coalition of huge amounts of data at one place. "n this data would be collected from
various sources. And thus bringing together all data might lead to duplication and
redundancy.
Collection of that data to which we do not have access. -ata that is not published by the
ban# in any of the periodicals is difficult to obtain.
'hile selling the products to the customers$ many as#ed for commission they will
receive. )ut since " am not an agent and is wor#ing directly with the ban#$ " was unable
to provide them with the same. This led to the cancellation of the deal.
RECOMMEN$ATION AN$ SUGGETIONS
62 "nvestors should always #eep a photocopy of the application form. which can be filed to
#now the manner in which application was made single$ (oint ownership and order of
ownership. "nvestors will also be able to see how they have signed the forms $ many
investors change their signatures over timeC some have a different signatures for ban#ing
and investment transactionsC some investors use both Kindi and English signatures2.
"nvestors will also #now the choice they have eercised 0dividend and redemption
options2.
;2 "nvestors should preserve the counterfoil ac#nowledgement issued by the collecting
agency. This ac#nowledgement usually also has the application number. "f account
statement or certificate is not received$ the ac#nowledgement is the proof of purchase$
with which investors can approach the registrar and transfer agent.
=2 "t is preferable to have (oint ownership$ so that investments will pass on to the (oint
owner in the event of death of the first holder.
F2 "t is important to fill up nomination details in the application. This will enable legal heirs
to claim the holdings without procedural delays. *ominations that do not indicate the
guardian of a minor are not valid. !uardian indicated will have to be a person other than
the holders of the investment.
92 Che%ues should be crossed and application number and name should be written on the
bac# of the che%ue. .ost mutual funds do not accept outstation che%ues$ post dated
che%ues 0with the eception of specific investment plans2 or postal orders.
72 Eisting investors can %uote their uni%ue account or folio numbers so that their holdings
will be consolidated. This is helpful in ta matters and in #eeping investment information
in a consolidated manner.
C+*C,D/"+*
Through the study " finally reached to the conclusion that "nvestment is the best utilization of the
earnings and leads to the improvement in the living standard of the people.
"t was found that people of different age groups have different perception s regarding
investments in .utual Fund schemes.
Kigh ris# ta#ers are generally interested in investing in .utual Fund and shares. They basically
go for E%uity /hares. 'hereas those who can ta#e calculated ris# are generally interested in
investing in )alanced /chemes. These schemes invest their funds in e%uity shares and debt in
apportion of 7<BF< ratio. And those who are not willing to ta#e ris# at all go for a -ebt /cheme
or .oney .ar#et /cheme.
"t is observed that .utual Fund gives better returns in comparison to ban#s. .utual Fund
provides better li%uidity and moderate ris#. .utual Funds offer their investors a number of
facilities such as inter5fund transfers$ online chec#ing of holding status$ etc .utual Fund offers
investors a valuable tool for Asset A,,+CAT"+*. Competition has made mutual funds
improve their services towards the investors. .ost mutual funds have now speeded up their
redemptions giving the investors the satisfaction of receiving his money on time.
)"),"+!RAPKA
www.amfi.com
www.pruicici.com
www.rbi.com
www.iciciban#.com
www.investopedia.com
www.financialdictionary.com
Financial management by m.y.#han
)usiness world
Professional ban#er$ icfai publication
)an#ing law$ icfai publication
.anagement of financial institutions$ icfai publication
A**EYDRE
8UESTIONNAIRE
-ear /irR .adam$
IH Astha ?alra is a .anagement student and is doing my summer internship in "C"C" )an#. The
title of my pro(ect is SAn Analysis +f .utual Funds "ndustry.T " re%uest you to #indly fill this
survey$ as it would help me in successful completion of my pro(ect. " assure that the
information given by you will be confidential and will be utilized for research purposes only.
6. Aour Age is
Dnder =<
=65F<
F659<
9657<
+ver 7<
;. Aour ta#e home income isB
Dnder Rs.6<<<<<
)etween Rs.6<<<<<5 ;<<<<<
)etween Rs.;<<<<65 9<<<<<
)etween Rs.9<<<<65 6<<<<<<
+ver Rs.6<<<<<<
=. The no. +f years you have until retirementB
= years or less
= to 9 years
9 to 6< years
6< to 69 years
69 years or more
F. 'hat is your epectation of how your future earnings would performB
"t would far outpace inflation
"t would be somewhat ahead of inflation
"t would #eep pace with inflation
"t would not be able to #eep pace with inflation
9. Aou are financially responsible forB
+nly yourself
6 person beside yourself
; to = persons beside yourself
F to 9 persons beside yourself
.ore than 9 persons beside yourself
7. 'ho influences your decision to invest in .F@
FriendsRFamilyRRelatives
*ewspaperR.agazines
TLRRadio advertising
)annersR)ill )oardRKoardings
8. Kave you ever invested in .utual Funds$ /haresR /toc#s etc.@
Aes
*o
RI") TTIT$'%
E. Kow would you describe yourself as a ris#5ta#er@
Careless
'illing to ta#e ris# for higher returns
Can ta#e calculated ris#
,ow ris# ta#ing capability
Etremely averse to ris#
:. Aour feelings about the ris#s can be summed up as followsB
" want the highest long5term growth and " am comfortable with large variations in
the *AL in the short term
" can accept minor variations in the *AL in the short term if it means " can
potentially earn more over the long run.
" had rather accept lower long5term return than worry about losing my capital in
the short5term
6<. "f you had R.9<<<< to invest$ which of the following choices would you ma#e@
Put the money in )an# Fied -eposits and )onds
"nvest in .utual Funds
"nvest in /hares
"nvest in a combination of the above with a higher proportion of )an# F-s and
)onds
"nvest in a combination of the above with a higher portion of .utual Funds and
/hares
66. The stoc# mar#et has dropped ;9G and the .utual Fund you invested also dropped ;9G$
but the mar#et epects the .utual Fund to go up again. 'hat do you do@
/ell .utual Fund
)uy more of it
?eep it as it is$ as you epect it to rise later
?eep it you are afraid of boo#ing a loss
MUTUA+ FUN$S
6;. Aour latest investment involvesB
.utual Funds +nly
/hares +nly
)an# Fied -eposits +nly
Combination +f All the above
6=. Amount invested inB
.utual Funds 0Rs.2 /hares 0Rs.2 )an# Fied -eposits 0Rs.2
6F. "f you have invested in the .utual Funds then which of the following 0Pls tic# all those
in which you have invested2
DT" .utual Fund Fidelity E%uity Fund
/)" .utual Fund Prudential "C"C" .utual Fund
/tandard Chartered .utual
Fund
)irla /un ,ife .utual Fund
-/P .errill ,ynch .utual Fund Principal .utual Fund5 P*)
K/)C .utual Fund Fran#lin Templeton
69. 'hile investing in a .utual Fund$ what is your priority@ 0Please ran# the following in
the order of preference2
Current *AL ZZZZZZZZZZZZZ
Company "mage ZZZZZZZZZZZZZ
Past Returns ZZZZZZZZZZZZZ
Fund .anager ZZZZZZZZZZZZZ
.inimum amount in the Fund ZZZZZZZZZZZZZ
Ris# Profile ZZZZZZZZZZZZZ
,i%uidity ZZZZZZZZZZZZZ
,oc# "n Period ZZZZZZZZZZZZZ
Entry ,oadR Eit ,oad ZZZZZZZZZZZZZ
-ividend Policy ZZZZZZZZZZZZZ
Asset Allocation ZZZZZZZZZZZZZ
67. 'hy do you invest in a .utual Fund@
Ta )enefit
Professional .anagement
,ess Time Consuming
-iversification and thus less ris#
All the above
T!0% -+R!1+,
68. "n how many years do you epect to start using the latest investment done by you in last
6 year@
.ore than ;< years
6< to ;< years
9 to : years
,ess than 9 years
IN5ESTMENT OB9ECTI5E
6E. 'hich of the following best describes your plans for this money during the net 6<
years@
" do not plan to withdraw any of my account valueR
" plan to withdraw less than 69G of my account$ at one time
" plan to withdraw more than 69G of my account$ at one time
*ot sure
6:. Kow do you epect to use the money from this investment in the future@
For travel or leisure
For my child 0education or marriage2
For further investments
For availing retirement benefit
Than# you$ for your valuable 6< minutes.
NAN#INI +,O(RA
%&-SII---.