MIT College of Management (MITCOM), Pune

A PROJECT REPORT ON
VARIOUS FUNDS ANALYSIS OF

SUBMITTED TO MAEERs MIT COLLEGE OF MANAGEMENT (MITCOM)

BY MANOJ KUMAR MISHRA Roll No.198, FINANCE Batch No.1

IN PARTIAL FULFILLMENT OF POST GRADUATE PROGRAM (PGP) JUNE-JULY, 2008-09

MAEERs MIT COLLEGE OF MANAGEMENT (MITCOM) PUNE

Table of C O N T E N T S

Chapter No.

Title

Page No. Iv v vi vii ix ix xi xi xii xiii 1-27 2 2 5 12 13 14 14 16 28-31 29 29 30

Declaration from student Certificate from Company/Organization Certificate from Guide Acknowledgement Chapter Scheme List of Tables List of Charts List of Graph List if Abbreviations Executive Summary
I 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 II 2.1.1 2.1.2 2.1.3 INTRODUCTION BACKGROUND OF THE STUDY BACKGROUND OF THE TOPIC COMPANY PROFILE STATEMENT OF THE PROBLEM NEED OF THE STUDY SCOPE OF THE STUDY OBJECTIVE OF THE STUDY VARIOUS FUNDS INFORMATION RESEARCH METHODOLOGY MEANING OF THE RESEACRH METHODOLOGY RESEARCH DESIGN TYPE OF RESEARCH DESIGN

ii

2.1.4 2.1.5 2.1.5A 2.1.5B III A A3.1 A3.2 A3.3 A3.4 A3.5 B IV 4.1 4.2 V VI

SAMPLING DESIGN DATA COLLECTION TECHNIQUE COLLECTING PRIMARY DATA THROUGH INTERVIEW METHOD COLLECTING SECONDARY DATA DATA PROCESSING AND ANALYSIS INVESTORS ANALYSIS ANALYSIS OF DATA FOR AGE GROUP ANALYSIS OF DATA FOR INCOME GROUP PERCENTAGE OF SAVING OF INCOME CURRENT INVESTMENT PATTERN ANALYSIS SOME MORE QUESTIONNAIRE VARIOUS FUNDS ANALYSIS OF THE CANARA ROBECO FINDINGS FINDING OF THE PROJECT LIMITATION OF THE PROJECT CONCLUSIONS RECOMMENDATIONS BIBLIOGRAPHY ANNEXURE

30 31 31 31 32-59 33 33 34 35 36 37 46 60-62 61 62 63 66 69 71

iii

DECLARATION

I, Mr. /Ms _____ _Manoj Kumar Mishra____________________________________ hereby declare that this project report is the record of authentic work carried out by me during the period from etc. 10th June 08 to 30th July 08 and has not been submitted to any other University or Institute for the award of any degree / diploma

Signature Name of the student- Manoj Kumar Mishra Date

iv

vi

vii

I take immense pleasure in completing this project and submitting the final project report. The day at CANARA ROBECO ASSET MANAGEMENT COMPANY has been full of learning and sense of contribution toward the organization. I would like to thank for the same for giving me an opportunity of learning and contributing through this project. I also take this opportunity to thank all those people that made this experience a memorable one. A successful project can never be prepared by the single effort of the person to whom project is assigned, but it also demand the help and guardianship of some conversant person who helped the undersigned actively or passively in the completion of successful project. In this context as a student of MIT School of Management, Pune I would first of all like to express my gratitude to Mr.Chandan Verma , Assistant Manager, Nagpur, for assigning me such a worthwhile topic Various Fund Analysis of Canara Robeco to work upon in CANARA ROBECO ASSET MANAGEMENT COMPANY. During the actual project work, Mr. Dilip Khapre (Executive, Canara Bank) and Mr. Abhijeet Kumar has been a source of inspiration through his constant guidance; personal interest; encouragement and help. I convey my sincere thanks to him. In spite of his busy schedule he always find time to guide me through the project. I am also grateful to him for reposing confidence in my abilities and giving me the freedom to work on my project. The project couldnt have been completed without timely and vital help of other office staff.

viii

Chapters Scheme

Chapter No 1 2 3 4 5 6

Title INTRODUCTION RESEARCH METHODOLOGY DATA PROCESS AND ANALYSIS FINDINGS CONCLUSION RECOMMENDATION

Page No 1 28 32 60 63 66

List of Tables
S. No Title A Product Table Fund Information Table 1.1 Canara Robeco Balance 1.2 Canara Robeco CIGO 1.3 Canara Robeco Emerging Equities 1.4 Canara Robeco Equity Diversified 1.5 Canara Robeco Equity Tax Saver 1.6 Canara Robeco Floating Rate 1.7 Canara Robeco GILT PGS 1.8 Canara Robeco Infrastructure 1.9 Canara Robeco Liquid Plus 1.10 Canara Robeco Liquid 1.11 1.12 Canara Robeco Multicap Canara Robeco Nifty Index Page No 15 16 17 18 19 20 21 22 23 24 25 26 27 46 48

Portfolio Statements Table (PST) PST 3.1 Canara Robeco Balance PST 3.2 Canara Robeco CIGO

ix

PST 3.3 PST 3.4 PST 3.5 PST 3.6 PST 3.7 PST 3.8 PST 3.9 PST 3.10 PST 3.11

Canara Robeco Emerging Equities Canara Robeco Equity Diversified Canara Robeco Equity Tax Saver Canara Robeco Floating Rate Canara Robeco Infrastructure Canara Robeco Liquid Plus Canara Robeco Liquid Canara Robeco Multicap Canara Robeco Nifty Index

49 51 52 54 54 56 56 57 58

Sectorial Investment Breakup(SIB) SIB 3.1 SIB 3.2 SIB 3.3 SIB 3.4 SIB 3.5 SIB 3.6 SIB 3.7 SIB 3.8 Canara Robeco Balance Canara Robeco CIGO Canara Robeco Emerging Equities Canara Robeco Equity Diversified Canara Robeco Equity Tax Saver Canara Robeco Infrastructure Canara Robeco Multicap Canara Robeco NIFTY Index 47 48 50 51 53 54 57 59

List of Charts
S.No
Investors Analysis Chart(IAC)

Title

Page No

IAC 3.1 IAC3.2 IAC 3.3 FAC 3.1 FAC 3.2 FAC 3.3 FAC 3.4 FAC 3.5 FAC 3.6 FAC 3.7 FAC 3.8

Mutual Funds Awareness Investors Opinion About Investment Stage Availing Personal Advisor Asset Composition of Canara Robeco Balance Asset Composition of Canara Robeco CIGO Asset Composition of Canara Robeco Emerging Equities Asset Composition of Canara Robeco Equity Diversified Asset Composition Canara Robeco Tax Saver Asset Composition of Canara Robeco Infrastructure Asset Composition of Canara Robeco Multicap Asset Composition of Canara Robeco Nifty Index

37 42 43 47 49 50 52 53 55 58 59

Fund Analysis Chart(FAC)

List of Graph
S. No Title Page No
33 34 35 36 38 39 40 41 44 45 46 Graphical Representation(GRT) of Findings GRT 3.1 Age Group GRT 3.2 Income Distribution GRT 3.3 Saving Pattern 35 GRT 3.4 Investment Pattern 36 GRT 3.5 Reasons Against MFs Investment 38 GRT 3.6 Investors Awareness About MFs Scheme GRT 3.7 Source of Purchasing MFs GRT 3.8 Investors Most Liked MFs Features GRT 3.9 Financial Advisor Expertise Demanded Most GRT 3.10 Reason to have Financial Advisor GRT 3.11 Reason for not using Financial Advisor

List of Abbreviations
Abbreviation
NAV ULIP MMI SIP AMC AUM CIGO GIC Net Asset Value Unit Linked Insurance Plan Money Market Instruments Systematic Investment Plan Asset Management Company Asset Under Management Compound Interest Growth Opportunities General Insurance Company

Full Form

xi

SEBI BOB CRISIL CRMF FIIs FDI MFs MFI FIs ELSS IPO PPF NSC POP

Stock Exchange Board of India Bank of Baroda Credit Rating Information System of India Limited Canara Robeco Mutual Funds Foreign Institutional Investors

Foreign Direct Investment Mutual Funds Mutual Fund Industry Financial Institutions Equity Linked Saving Scheme Initial Public Offering People Provident Fund National Saving Certificate Point of Purchase

xii

The project titled Fund Analysis of Canara Robeco is being carried out at CANARA ROBECO ASSET MANAGEMENT COMPANY, NAGPUR. CANARA ROBECO ASSET MANAGEMENT COMPANY operates in various financial products and services like Stock Broking and Mutual Fund. The evaluation of financial planning has been increased through decades, which is best seen in customer rise. Now a days investment of saving has assumed great importance. According to the study of the markets, it is being observed that markets are doing well in Mutual fund. In near future a proper financial planning is required to invest money in all type of financial product because there is good potential in market to invest. In this project the great emphasis is given to the investors mind in respect to investment in Mutual Fund .The needs and wants of the client is taken into consideration. The main objective of this project is to know the Awareness of Mutual Fund among investors and also to know the investing pattern of people in different Financial xiii

Project. Mutual Funds are one of the safe ways to invest, particularly for retail investors. Every investor has their own financial situation and financial temperament with varied degree of risk tolerance level. After analyzing the feedback the conclusion has been made that the Indian financial market is having lots of potential customer the only thing is to give a proper guidance to the prospective customers. Presently when market has become very choppy and is full of uncertainties, investing through Mutual funds is relatively safe way. There is intense competition amongst Mutual Funds of different companies. All of them are trying to attract more and more investors and for the same they are customizing their funds in order to suit their needs. ULIPs plan of Insurance industry is creating challenge for Mutual Fund Industry. Apart from industry initiatives, market regulator and Government are playing their pivotal role. In the same race, recently Goldman Sachs has got the approval to start their own business of asset management. The MF business is highly concentrated fund-wise and scheme-wise. Many MFs are sponsored by public sector banks and FIs and so investors are assumed of some security in their investments. MFs had been able to inspire confidence among investors. However with the proliferation of MFs, this is changing. Various studies on risk analysis of MFs have shown that many schemes are characterized by high risk. The experience from a country like US indicates that the growth of MFI has increased the potential for creating systematic volatility. The regulations of MFs will have to be undertaken not only for eliminating abuses and frauds but also for shielding the whole financial system from the collapse of confidence in MFs The Indian MFI has not performed well in gaining the small individual investors confidence and trust by offering better products, better processes, and better services. MFs are popular mainly with the urban, high and middle income groups only. They are yet to penetrate the rural areas in a big way. Many investors have low opinion about the investment efficiency of MFs, which are often seen as momentum chasers rather that true professional investment managers. They do not have a good set-up to reach the retail investors and to collect money from small towns. They have lacked in systematic evaluations of investors requirements; they have become a kind of trading instruments rather than investment vehicles. There have been frequent miscalculations of returns and premature closure of schemes by them. xiv

xv