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A SUMMER TRAINING PROJECT REPORT ON MUTUAL FUNDS: A STUDY OF CONSUMER BEHAVIOR AND DEVELOPMENT OF MODEL PORTFOLIO

UNDERTAKEN IN SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT OF THE DEGREE IN MASTER OF BUSINESS ADMINISTERATION SESSION (2010-2012)

SUBMITTED TO MS. POONAM

SUBMITTED BY BHARAT BHUSHAN ROLL NO 100752245846

SRI SAI GROUP OF INSTITUTES


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ACKNOWLEDGEMENT

As I write this acknowledgement, I must clarify that this is just a formal acknowledgement but also a sincere note of thanks and regard from my side. I feel a deep sense of gratitude and affection for those who were associated with the project and without whose cooperation and guidance this project could not have been conducted properly. A note of thanks to my college for always inspiring and guiding me to the right path. At the end I dedicate these efforts to those persons who have extended their valuable cooperation. I give special thanks to Ms. Poonam Thakur (PROJECT GUIDE) for their valuable guidance. It was a great privilege to work as summer trainee in Reliance life insurance. Every person in this COMPANY guided me to their heart content to help me in my way towards the success. I have no words to appreciate Mr. Ankit sharma (BRANCH MANAGER) Which have helped me a lot during training. They have proved as a good companion as well as a guide.

DECLARATION

I undersigned hereby declare that the summer training project report submitted to my college Sri Sai Institute of management and technology .In partial fulfillment for the degree of master of business administration on Mutual fund: study of consumer behavior and development of model portfolio is a result of my own work under continuous guidance and kind co-operation of our college faculty member Ms. Poonam. I have not submitted this training report to any other university for the award of degree.

PREFACE

Present era is of business and trade, without which probable world would not survive for even the second day. Amongst increasing competition, quick thinking, faster decision making based on a knowledge and proper implementation of the decision taken has become must.. A part of the completion of the course involves summer training in the industry, which helps the students to get complete practical exposure to the ways in which business is done and also get an insight into management practices followed by the industry. My summer training has given me more significant values as I did my training at one of the most professionally and efficiently managed corporate in India i.e. :RIL provides me a tremendous learning experience.

EXECUTIVE SUMMARY

The objective of my project was twofold. Firstly, I tried to understand the basics of Mutual funds. I tried to understand what the current popularity of mutual funds is and how do investors rate them against other investment instruments. To analyse the same, I tried to draw conclusions between investment in Mutual funds and an investors age, income, profession etc. I also tried to find out what considerations the investor keeps in mind before making an investment in Mutual Funds. I have presented my findings graphically in the report. This gave me an insight as to how the mutual fund industry is gaining popularity, being a relatively new mechanism for investment.

Next, I designed portfolios for 3 model investors. The most important aspect for an individual when he invests his money somewhere is the security aspect; whether his money would be safe or not in terms of growth. Various factors might affect the growth of the particular investment option. An average investor seldom thinks of the fundamental analysis involved before investing in any security or scheme. I undertook only the Mutual Fund investment pattern as part of the Portfolio Analysis.

To understand how to develop an investors portfolio, the following factors were kept in mind Return needs. Liabilities if any. Risk capacity Present investments etc

Finally, I came out with conclusions and certain suggestions, based on my own analysis, which seem feasible to me in the present conditions. For information about Mutual Funds, I referred to various magazines and journals like Mutual fund Insight and Outlook Money. Fortunately for me, Outlook Money came out with a special edition on Mutual Funds when I was working on my project. To understand the Mutual Fund advisory process better, I also took the AMFI Mutual Fund Advisors Module Certification. Taking and clearing the exam gave me a different and more professional perspective of Investment Advisory.

TABLE OF CONTENTS
CHAPTER NO. 1 COMPANY PROFILE TOPIC PAGE NO. 8

2 3 4 5

ORGANIZATION STRUCTURE INTRODUCTION TO COMPANY OBJECTIVE OF THE STUDY DATABASE AND RESEARCH METHODOLOGY

10 11 19 21

DATA ANALYSIS AND INTERPRETATION

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7 8 9 10 11 12 13

PORTFOLIO SELECTION ANALYSIS FINDINGS CONCLUSION SUGGETIONS & RECOMMENDATIONS LIMITATIONS OF THE STUDY BIBLIOGRAPHY & REFERENCE APPENDIX

32 45 47 49 50 52 53

CHAPTER-I

COMPANY PROFILE

COMPANY PROFILE

Reliance Anil Dhirubhai Ambani Group (usually referred as Reliance Group) is one of India's largest conglomerates, headquartered in Navi Mumbai, India. The company, which was formed after Dhirubhai Ambani's business empire was divided up, is headed by his younger son Anil Ambani. It has a market capitalization of US$ 81 billion, net assets US$ 29 billion. though leading group company RCOM stock fell sharply (50% fall in six months after it was charge sheeted in the 2G scam. The ADAG Reliance Group has a business presence that extends to over 20,000 towns and 4.5 lakhs (450,000) villages in India, and across the globe. The shareholder base is over 12 million, among the largest in the world. The group is present in many sectors including Telecom, Capital, Power, Infrastructure, Entertainment and Health. ADAG group flagship company Reliance Communications was named in February 2011 for having provided favours to DMK minister A. Raja and others in exchange for a hugely discounted spectrum license in the 2G scam. The company was chargesheeted in April 2011, and senior VP Surendra Pipara, VP Hari Nair, and group MD Gautam Doshi were arrested for bribery and denied bail. Anil Ambani visited the executives in Tihar jail in June to provide assurances that efforts were being made to get bail for them History Reliance group was founded by Dhirubhai Ambani in 1966 as a polyester firm. Dhirubhai started the equity cult in India. Reliance later entered into financial services, petroleum refining, power sector. By 2002 Reliance had grown into a $15 billion conglomerate. After the death of Dhirubhai Ambani on July 6, 2002, Reliance was headed by his sons. The group was formed after the two feuding brothers Mukesh Ambani and Anil Ambani, split Reliance Industries. Anil Ambani got the responsibility of Reliance Infocomm, Reliance Energy, Reliance Capital and RNRL. This led to a new beginning called RELIANCE. Later this group entered the power sector through Reliance Power, and the entertainment sector by acquiring Adlabs

ORGANISATION STRUCTURE Reliance Mutual Fund Reliance Mutual Fund is India's largest mutual fund. Reliance General Insurance is a general insurance company and among the top 3 private sector insurers. Reliance Money is brokerage and distributor of financial products in India with over 2.7 million customers and has the largest distribution network. Its brokerage, arm Reliance Securities is planning to invest Rs 300 crore (Rs 3 billion) for upgrading infrastructure, hiring staff and enhancing the capability of its online trading platform. In March, 2011 Nippon Life Insurance, Japan's biggest life assurer by assets, agreed to buy a 26 per cent stake in Reliance Life Insurance for Rs3,062 cr. Capital Reliance Capital Reliance Life Insurance Reliance General Insurance Reliance Venture Reliance Mutual Fund Reliance Money Reliance Securities Reliance Consumer Finance Reliance Venture Capitalist Reliance Asset Reconstruction Reliance PMS ICEX - Stock exchange

Reliance Capital (Rel Cap) has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking, depository services, distribution of financial products, consumer finance and other activities in financial services. Butibori power Project, Nagpur - 600MW Samalkot Power Project - 2500MW Wind Power - 400MW Solar Power - 500MW Hydropower - 2500MW

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CHAPTER-II

INTRODUCTION TO TOPIC

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INTRODUCTION 1. ORIGIN AND GROWTH OF MUTUAL FUNDS IN INDIA The origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the year 1963. In the past decade, Indian mutual fund industry had seen dramatic improvements, both quality-wise as well as quantity-wise. Before, the monopoly of the market had seen an ending phase, the Assets Under Management (AUM) was Rs. 67bn. The private sector entry to the fund family rose the AUM to Rs. 470 bn in March 1993 and till April 2004, it reached the height of 1,540 bn. Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is less than the deposits of SBI alone, constitute less than 11% of the total deposits held by the Indian banking of the industry. The main reason of its poor growth is that the mutual fund industry in India is new in the country. Large sections of Indian investors are yet to be intellectuated with the concept. Hence, it is the prime responsibility of all mutual fund companies, to market the product correctly abreast of selling. First Phase - 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of asset under management.

Second Phase - 1987-1993 (Entry of Public Sector Funds) Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC in 1989 and GIC in 1990. The end of 1993 marked Rs.47,004 as assets under management. Third Phase - 1993-2003 (Entry of Private Sector Funds) With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be
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registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other mutual funds. Fourth Phase - since February 2003 This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29,835 crores (as on January 2003). The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of AUM and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth.

1. MAJOR MUTUAL FUNDS COMPANIES IN INDIA (alphabetically) Fund House Birla BoB Canarabank Cholamandalam Deutsche Bank DSPML Escorts Franklin Templeton Grindlays HDFC HSBC
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ICICI Prudential ING Vysya J Morgan Kotak LIC Principal Reliance Sahara SBI Sundaram Tata Taurus UTI

2. CONCEPT OF MUTUAL FUNDS A Mutual 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 market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:

Mutual Fund Operation Flow Chart

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Advantages of Mutual Funds: Professional Management - Mutual Funds provide the services of experienced and skilled professionals, backed by a dedicated investment research team that analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme. Diversification - Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. You achieve this diversification through a Mutual Fund with far less money than you can do on your own. Convenient Administration - Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries, delayed payments and follow up with brokers and companies. Mutual Funds save your time and make investing easy and convenient. Return Potential - Over a medium to long-term, Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities. Low Costs - Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits of scale in brokerage, custodial and other fees translate into lower costs for investors. Liquidity - In open-end schemes, the investor gets the money back promptly at net asset value related prices from the Mutual Fund. In closed-end schemes, the units can be sold on a stock exchange at the prevailing market price or the investor can avail of the facility of direct repurchase at NAV related prices by the Mutual Fund. Transparency - You get regular information on the value of your investment in addition to disclosure on the specific investments made by your scheme, the proportion invested in each class of assets and the fund manager's investment strategy and outlook. Flexibility - Through features such as regular investment plans, regular withdrawal plans and dividend reinvestment plans, you can systematically invest or withdraw funds according to your needs and convenience. Affordability - Investors individually may lack sufficient funds to invest in high-grade stocks. A mutual fund because of its large corpus allows even a small investor to take the benefit of its investment strategy.

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Choice of Schemes -Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.

Well Regulated - All Mutual Funds are registered with SEBI and they function within the provisions of strict regulations designed to protect the interests of investors. The operations of Mutual Funds are regularly monitored by SEBI.

Disadvantages of Mutual Funds: Professional Management - Many investors debate whether or not the so-called professionals are any better than themselves at picking stocks. Management is by no means infallible, and, even if the fund loses money, the manager still takes his/her cut. Costs Certain costs like entry / exit loads, expense ratios etc are associated with mutual funds. These reduce the net worth of an investors holdings in a mutual fund. Dilution - It's possible to have too much diversification. Because funds have small holdings in so many different companies, high returns from a few investments often don't make much difference on the overall return. Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money.

4. TYPES OF MUTUAL FUNDS Mutual fund schemes may be classified on the basis of its structure and its investment objective.

By Structure Open-end Fund An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value related prices. The key feature of open-end schemes is liquidity.

Closed-end Fund A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. In order to provide an exit route to the investors, some close-ended
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funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor.

Interval Fund Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre-determined intervals at NAV related prices.

By Investment Objective Growth Funds The aim of growth funds is to provide capital appreciation over the medium to long term. Such schemes normally invest a majority of their corpus in equities. It has been proved that returns from stocks, have outperformed most other kind of investments held over the long term. Growth schemes are ideal for investors having a long term outlook seeking growth over a period of time. The composition of the fund may vary from scheme to scheme and the fund managers outlook on various scrips. The Equity Funds are sub-classified depending upon their investment objective, as follows: Diversified Equity Funds Mid-Cap Funds Sector Specific Funds Tax Savings Funds (ELSS)

Equity investments are meant for a longer time horizon. Equity funds rank high on the risk-return matrix. Income Funds The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures and Government securities. Income Funds are ideal for capital stability and regular income.

Balanced Funds The aim of balanced funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. In a rising stock market, the NAV of these schemes
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may not normally keep pace, or fall equally when the market falls. These are ideal for investors looking for a combination of income and moderate growth. Money Market Funds The aim of money market funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes may fluctuate depending upon the interest rates prevailing in the market. These are ideal for Corporate and individual investors as a means to park their surplus funds for short periods.

Other Schemes

Tax Saving Schemes These schemes offer tax rebates to the investors under specific provisions of the Indian Income Tax laws as the Government offers tax incentives for investment in specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The Act also provides opportunities to investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds.

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CHAPTER NO. III

OBJECTIVE OF THE STUDY

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Objectives

The project is undertaken with the following objectives:

Major Objectives: To understand and analyze the current popularity of Mutual Funds among the Banks customers and identify the potential customer group. Develop 3 Model Portfolios of Mutual Funds based on the clients profile and requirements.

Minor Objectives: To study how the Investment Advisory division of the company works with specific emphasis on Mutual Funds. To understand the selling process involved in selling Mutual Funds.

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CHAPTER NO .IV

DATA BASE AND RESEARCH METHODOLOGY

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DATA BASE AND RESEARCH METHODOLOGY

Secondary Research Data was collected from Journals, Magazines, Newspapers and Websites to understand the current scenario about Mutual Funds and to find out the details about the various schemes and options available currently.

Primary Research In the primary research, data regarding the following areas was collected from a sample of 100 people Profile of the investor Age Income Profession

Risk taking capacity of the investor Reasons for investing or not investing in Mutual Funds Preference of Mutual Funds among the various Investment options Kinds of Mutual Funds/ Schemes Preferred Criteria that the customer gives importance to while selecting a scheme

SAMPLING PLAN The target population was people above the age group 18 years. The sample size was 100.

The 2nd part of my project was based on Secondary research through magazines and journals and KIMs of major Mutual Funds. Obtaining primary data was concerned with getting the profiles of 3 investors who do not currently invest in Mutual funds but might do so if advised.

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CHAPTER NO.V

DATA ANALYSIS & INTERPRETATION

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1. Data Profile

The sample which has been surveyed has been selected so as to include people from all age groups, income profiles and professions. Also, out of 100 samples, 15 are women. The data represented below is in percentage, however, since the sample size is exactly 100, the percentage figures are actual figures too.

1Q-Graphical Presentation of Data Profile:

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Figure 1

Representation of the age groups has been done according to the proportion of the investing population.

2 Q-Similarly, all income groups have also been adequately represented.

Figure 3

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The Not employed segment includes housewives and students, who do invest, but are not employed. The Self employed category includes professionals like doctors, architects, lawyers, chartered accountants, etc, who are practicing their professions individually.

2. Data Analysis The data collected has been analyzed on several parameters. The purpose is to find out the perception of people about Mutual funds vis-a-vis other forms of investments and to see where the current potential for Mutual funds as an investment instrument lies. The first fact that needs to be found out is whether a person invests in Mutual Funds or not. Later on, the breakup of the data has been done according to age, income, profession etc.

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Figure 5

Out of the 100 people questioned, 67 invest in mutual funds currently. This gives a proportion of 2/3 of investing population investing in mutual funds.(figure 5)

I found out what the reasons for not investing in Mutual funds were. Each person had his own reason, but the primary reasons were inability to design a portfolio and risk factors. The reasons are presented below graphically

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Figure 6

Here lies a great opportunity for investment advisors. Not being able to manage and design a portfolio is a major factor stopping people from investing in mutual funds. Thus if investment advisors can influence investors, investments in mutual funds would increase.

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Current Coverage across AGE GROUPS:

Figure 7 (Figures above bars indicate percentage of that groups total) Age 18-25: A large number of investors belonging to this age group are investing in Mutual Funds. But percentage wise, it is still less. The reason being that since the investors are young, their risk taking capacity is high. So, they invest in direct equity too.

Age 25-35: This age group has the maximum percentage of people investing in Mutual Funds. Investors have more purchasing power and since their risk capacity goes down, Mutual funds seem to be a better option than direct equity.

Age 35-50 and 50 and above: The relative importance of mutual funds in an investors portfolio falls as he nears retirement. Older investors prefer traditional investment options like post office savings and Fixed Deposits since these are safe instruments. So the most potential age group is 25-35 years.

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INCOME GROUPS:

Figure 8 (Figures above bars indicate percentage of that groups total)

Less than 2 lakh income group Almost half the sample surveyed in this income group (10 out of 22) said that they do not invest in mutual funds. Reason for this being that, they consider mutual funds as a relatively risky investment vehicle, considering their income level.

2 lakhs to 5 lakhs this income group has the largest potential. The income group has the adequate income level to support investments, even if they are a little risky.

Above 5 lakhs Mutual Fund investments are found in this income level too. The investors in this segment prefer to invest in real estate and direct equity too.

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PROFESSION:

Figure 9 (Figures above bars indicate percentage of that groups total )

Across all professions there is a proportionate mix of people who invest and who dont. Some observations regarding this are listed below Business: People who have their own businesses have a tendency to invest more in insurance products.

Service: People who are employed in organizations, prefer instruments like PPF because they can get tax benefits. Mutual Funds as a tax saving investment option is still to gain popularity.

Retired: This is one area where the number of people investing in Mutual Funds is very low. The reason being, that they prefer traditional investment options like Fixed Deposits and Government supported instruments like KVP, NSC etc. They consider Mutual Funds as relatively risky and thus very few retired people invest in these.

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Types of Funds and Schemes preferred Among Mutual Funds, most investors prefer growth funds. Balanced funds find favour with older and conservative investors. The importance that people give to ELSS is only 8%. This again emphasis on the fact that tax saving funds are still not popular with investors

Figure 10

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CHAPTER-VI Portfolio selection and analysis

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Portfolio Selection
Mutual funds as an investment vehicle are structured to reduce risks as far as possible. As a discerning investor, one who is not averse to taking on more risk in order to achieve greater returns, he wants his investments to be managed more actively compared to a mutual fund. An investor wants his investments to be managed in a way that tries to maximize value for him, and is customized just for him. Inorder to build a portfolio for a client, the following steps are to be kept in mind -

Step One - Identify the Investment needs of the client


A clients financial goals will vary, based on his age, lifestyle, financial independence, family commitments, and level of income and expenses among many other factors. Therefore, the first step is to assess needs of the client. This requires defining the clients investment objectives and needs which could be regular income, buying a home or finance a wedding or educate his children or a combination of all these needs, the quantum of risk he is willing to take and his cash flow requirements.

A very important step in this area is to analyze the investors profile on the below-mentioned four criteria Age Investment Objective Risk Appetite Time Horizon Age

Bogles Asset Allocation Model: Bogle has specified an asset allocation strategy involves combining the investors age, risk profile and preferences Age/ Stage Younger Investor Older Investor Accumulation Stage 80% Equity 20% Debt 70% Equity 30% Debt Distribution Stage 60% Equity 40% Debt 50% Equity 50% Debt

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To help a client build a portfolio that suits his individual needs, illustrative examples of three kinds of investors is given below.

A larger portion of debt is allocated to an investor who is oriented towards a growth strategy and building up an aggressive portfolio wherein his capital grows at a healthy rate. A cautious investor would play safe by investing a larger portion in bonds and the cash market. This would also make the investments more liquid. This is summed up in the table below Asset class Major types Stocks Common, preferred Large cap, mid cap, small cap Growth, value Int'l/domestic Reasons to choose High return potential May provide income Long-term horizon High Major risk

Bonds

Government, agency Municipal Corporate Mortgage-backed, backed Int'l/domestic asset Regular income Potential for appreciation price Medium

Possible tax advantages

Cash equivalents

Treasury bills Commercial paper CDs and banker's acceptances Money markets

Regular income Relative price stability Liquidity Low

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2. Objective and Time Horizon Types of funds based on Investment Objective and time horizon: Investment Objective Short-term Investment Capital Appreciation Regular Income Tax Saving 3. Risk Appetite An investors investment choices depend on a number of factors. A very important one is the amount of risk that he is prepared to take with his money. Investment horizon Ideal Instruments

1- 6 months Liquid/Short-term plans Over 3 years Diversified Equity/ Balanced Funds Flexible Monthly Income Plans / Income Funds

3 yrs lock-in Equity-Linked Saving Schemes (ELSS)

With corporate bonds, for example, a company may not be able to pay its investors back. (This risk is reduced if one invests in a bond fund - as several bonds make up the funds portfolio, so you are less reliant on the performance of any one entity). Share prices on the other hand go up and down for a variety of reasons. Market conditions, a companys performance and the views of investors can all impact the share price.

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Risk-Return Map

Step Two - Choose the right Mutual Fund


The important thing is to choose the right mutual fund scheme which suits the investors requirements. The offer document of the scheme mentions its objectives and provides supplementary details like the track record of other schemes managed by the same Fund Manager. Some factors to evaluate before choosing a particular Mutual Fund are the track record of the performance of the fund over the last few years in relation to the appropriate yardstick and similar funds in the same category. Other factors could be the portfolio allocation, the dividend yield and the degree of transparency as reflected in the frequency and quality of their communications. Among Mutual Funds, there exist a large range of funds to suit an investors needs. Based on the clients requirements, care has to be taken to see that the portfolio includes the right kind of funds. Just having the best performing funds is not that important.

Types of funds based on client requirements Equity Funds Large Cap funds Included in the portfolio of investors who do not desire volatility and want reasonable and stable returns. These funds have their major investment in Large Cap scrips.
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Mid Cap funds - Currently, the midcaps are performing well, but their main feature is volatility. So these are included in portfolios of investors who want growth over a long period of time. Lately, a lot of AMCs have come up with new issues of Midcap Funds. However, the portfolio should not be too concentrated on these funds. It makes investments risky. ELSS These are generally Closed ended Equity schemes and allow rebate under the IT Act. The limit of rebate has been increased to Rs. 1 lakh. So these funds are gaining popularity now. Balanced Funds these funds have a mix of debt and equity and are advised to risk averse investors. Balanced funds invest a major portion of their investments in the Bond market. MIP (Monthly Income Plans) These plans generate monthly returns and are a safe investment option for older investors or for investors who want security of investments with regular earnings. Debt Funds These are also chosen for risk averse and conservative investors.

Step Three - Select the ideal mix of Schemes


Investing in just one Mutual Fund scheme does not take care of all the needs of the investor. Equity schemes, MIPs, Balanced schemes, ELSS take care of different objectives and a mix of them needs to be considered. For my project, I referred to various magazines and websites to know which fund was performing well and which wasnt. A complete list of the schemes with their performance and rating is given in the appendix. Jacob has developed a Model which helps an investor allocate his investments into different schemes based on the stage in which he is in.

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Step Four Regularly assess the performance of the portfolio to see if rebalancing is required. Also, poorly performing schemes must be removed from the portfolio and replaced with good schemes. However, the exit load must be considered in this regard.

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Model Portfolios
Investor A Investor Profile: Retired investor aged 63 Has no liabilities left No of dependents 1 Owns a house and a car

Current sources of income: Pension Returns from Fixed Deposits Rent income from portion of house let out

Current Investments: The investor has a life insurance policy in his and his wifes name Has Fixed Deposits yielding regular income Has a PPF that is maturing soon and he wants to invest the proceeds in Mutual Funds

Factors to be considered for building the portfolio: Has a PPF that is maturing in 1 months time and wants to invest the amount in a portfolio of Mutual Funds Wants an annualized return of atleast 20% from his portfolio Risk and time horizon: Risk level : Low to Moderate Time Horizon: Varies between 1 year and 3 years

Analysis of the investors profile The investors Fixed Deposits are yielding him a regular income. He primarily wants to invest to make his proceeds from the PPF account grow. So his objective for investment can be said to be capital appreciation. But since he is a retired investor, balancing the portfolio would be very important. More so, because his other sources of income are very modest. So his portfolio can be structured in way that there is a balance of equity and debt. Since he is looking at investing for upto 3 years, again equity should not be ignored. Infact, large caps should be an important part of his portfolio.

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Analysis of investors portfolio


Considering the investors profile and requirements the above mentioned portfolio is suggested to him based on these reasons:

10 best funds have been selected from all categories. The rating of none of the funds selected in below 4 star category. A conservative amount of equity 57% has been included in the portfolio. Upto 50% equity was needed to provide capital appreciation to his new investments.

The funds selected are all above 4 star rating equity diversified funds. Funds with consistent track record have been selected. Pru ICICI Dynamic and Sundaram BNP Paribas Select midcap have been selected for their impressive returns.

To give exposure to debt, UTIs Mahila Unit Scheme has been selected. This is in addition to 2 balanced funds which have been performing consistently. Debt forms around 35% of the portfolio.

Liquidity of investments has been ensured through an allocation of around 8% to cash and money market instruments. Since the investor is a pensioner, an MIP of LIC (LICMF Floater MIP Plan A) has been included to ensure a regular income. This has also increased his exposure to the bond market which provides safety to investments.

Since the investors PPF is maturing, he would not have a tax saving avenue. For this reason, the best performing ELSS SBI Magnum Taxgain is advised to the investor.

Large cap funds provide more liquidity and security of earnings. Thus they have been included in a larger ratio as compared to mid caps and small caps which are volatile in nature. Apart from Reliance Growth and BNP Paribas Select Midcap, all other schemes are large cap oriented schemes.

Top Holdings of selected schemes: Pru ICICI Dynamic : Reliance Industries Reliance Growth : JSW Steel UTI Mahila Unit Scheme : Tata Sons Sundaram BNP Paribas Select Midcap: Jai Prakash Associates Magnum Taxgain: Crompton Greaves HDFC Prudence: ONGC
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.Investor B
Investor Profile: 28 year old investor Works with an MNC as a middle level executive Annual Income is in the category of 3 lakhs to 5 lakhs. The investor has EMIs to pay on his car. Lives in a rented house Wants to build up a corpus to fund a house 5 years hence

Current sources of income: Salary Income Returns from Fixed Deposits

Current Investments: The investor has a life insurance policy in his name Has Fixed Deposits yielding regular income Has invested in Direct Equity which is yielding modest returns

Factors to be considered for building the portfolio: The objective of the investor is to build a corpus to fund a house. So his horizon for investing is long term. Wants an annualized return of atleast 25-30% from his portfolio Risk and time horizon: Risk level : Moderate to High Time Horizon: Long term

Analysis of the investors profile The objective for investment can be said to be capital appreciation since he wants to build up a corpus 5 years hence. He has a regular source of income and is a young investor so the major portion of this portfolio would consist of equities. Infact, mid caps should be an important part of his portfolio to ensure a healthy return on his investments. Investment in a Tax saving fund (ELSS) should also be done. This would also take care of a long term closed ended fund. Suggested allocations: Equity: 80-90%
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Debt: 10-15% Money Market instruments: 5-10% Among Equity: Large Cap funds: 40% Mid Cap and Small Cap funds: 60% The investor can be said to be in the Accumulation Stage according to Bogles criteria. The large cap equity funds would take care of the long term perspective of the investor. And the more volatile mid caps are included in a large ratio to generate above average returns on his investments. 10-15% of Debt is needed to provide stability to the returns. The investor can consider in investing in about 8 schemes. Too less a number of funds make the portfolio concentrated and risky. Too many, makes it unmanageable and doesnt really serve the purpose. Also, while selecting the fund, their portfolio mix should be studied and it should be ensured that they are different. The investor would be advised to go for a growth option to ensure that he is able to take advantage of compounding his returns. Since his horizon spans a period of 5 years, closed ended funds can also be suggested to him as they yield better returns as compared to open ended schemes due to compounding of returns. Care should be taken to ensure that the funds selected have different holdings. Incase they have the same companies as top holdings, the needed diversification would not be achieved.

Analysis of investors portfolio

Since the investors horizon is a long term one, more of equity funds have been included in the portfolio. Infact just one balanced fund- SBI Magnum Balanced has been included to give a little exposure to debt.

Exposure to equity is about 87% and to debt is around 7%. Such an aggressive portfolio has been built keeping two things in mind Long term horizon of the investor Age of the investor High risk tolerance

A closed ended tax saving fund HDFC Long Term Advantage has been allocated 20% of the investment amount. This would serve 2 purposes take care of the tax saving of the

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investor and help park the funds for 3 years which would enable him to advantage of the power of compounding. Prudential ICICI Dynamic Plan has a high amount of risk compared to its category funds, but it has been included considering its return performance in the past. DSPML Opportunities Fund is included because it is a fund whose earnings are not very volatile in the short run. Reliance Growth is one fund that has more emphasis on Midcaps and Small caps. This would help generate healthy returns. Also Sundaram BNP Paribas Select Midcap Fund has been included in the portfolio for the same reason. For this reason, a lesser allocation has been done to Magnum Global because even that is a fund investing primarily in Midcaps. Too much emphasis on Midcaps may make the portfolio risky. Some emphasis has been given to large cap oriented funds owing to their safety, but mid caps have not been ignored owing to their ability to generate returns. HDFC Equity and DSPML Opportunities are 2 good performing large cap funds included in the portfolio. All schemes selected are more than 4 star rating, rating done by Valueresearch. Top Holdings of selected schemes: HDFC Equity: Infosys Technologies Sundaram Select Midcap: Jai Prakash Associates Franklin India Prima: Aditya Birla Nuvo Reliance Growth: JSW Steel SBI magnum Balanced: Reliance Industries Prudential ICICI Dynamic: India Cements Kotak 30: Bharti Airtel DSPML Opportunities: Reliance Industries

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Analysis of investors portfolio


The investor can expect returns of around 37-38% if he stays invested in the mentioned portfolio. The investors portfolio has 3 closed ended funds viz. HDFC Longterm Advantage, Birla Equity Plan and Prudential ICICI Tax Plan. This would help in compounding returns from investments. These would also serve as Tax saving ELSS. HDFC Longterm Advantage is focused on Midcaps a good area to invest in currently. An Index fund - Pru ICICI Spice has been also allocated in the portfolio. Index Funds are riskier but generate healthy returns. The best performing Index Fund has been chosen. Apart from this, a Sectoral Scheme TATA Lifesciences and Tech has been allocated 5% of the investment. Technology funds have performed very well in the last 3 years and TATA Lifesciences and Tech Fund has the advantage of diversifying into various areas. Prudential ICICI Tax plan, Reliance Growth and HDFC Long Term Advantage Fund are providing the needed exposure to Mid Caps. The investor already owns HDFC Equity Scheme. It is a good scheme, with emphasis on Large Cap Scrips. Thus lesser allocation would be done to schemes which emphasize on Large Caps. Exposure to equity is to the extent of 90%. It is high but required considering the long term horizon of the investor. Top Holdings of Selected Schemes HDFC Long term Advantage - CONCOR Birla Sunlife Equity Bharti Airtel Kotak 30 - Reliance Reliance Growth JSW Steel Prudential ICICI Tax Plan Cadilla Healthcare Prudential ICICI Spice - Infosys Technologies HDFC Top 200 - ONGC Birla Equity Plan Maruti Udyog Ltd ICICI Pru Dynamic - Reliance TATA Lifesciences and Tech Infosys Technologies

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FINDINGS

Maximum of investors dont have ability to find design portfolio.

Majority of investors of mutual fund are from age group 25-35.

Majority of investors of mutual fund are from income group above 3.5 lakh.

The people who are self-employed are majority investor of mutual fund.

Growth funds are most preferred fund among the investor.

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CHAPTER-VII CONCLUSION & RECOMMENDATIONS

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CONCLUSION

Analyzing the above, we can say that, currently, one third of the sample population currently invests in Mutual Funds. Out of these, people of age group 18 to 35 and income group 2 lakhs to 5 lakhs pa, are the ones investing the maximum. Popularity of Mutual Funds is the same for all professions except for the retired investors. The main reason being that they prefer traditional instruments which are relatively safer. The reason why people are not investing in Mutual Funds is that they are not able to design and manage a portfolio primarily because they dont have the time for it or because they dont have the required knowledge. And investors who are investing are giving importance to the investment advisors suggestions. So here lies an opportunity for the banks investment advisory division. They can target the above mentioned customer group and influence them through suggestions and advise. Another recommendation to the bank would be to create portfolios for customers based on their requirements and need. A well designed portfolio that gives a customer an idea about how his investments would fare, would influence customers to invest in Mutual Funds more. Also, the investment advisor can advise investors about ELSS. The popularity of ELSS is still to go up as a tax saving vehicle. Among funds, investors prefer open ended growth funds. Here is where the forte of Mutual Funds lies. Suggestions to the bank: Target investors in the Income group 2 lakhs to 5 lakhs. Target investors in the age group 18 to 35. Target self employed investors. People in service and business prefer Mutual Funds less and other instruments more. Aim at selling mostly balanced and debt funds to older and retired investors. Emphasize on building portfolios for investors to show them where they can gain from mutual fund investments. Investors have given a positive response when asked whether they would invest in Mutual Funds if advised by an investment advisor. And one of the major reasons why they are not investing is that because of inadequate knowledge, they are not able to build healthy portfolios.

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Aim at maintaining a long term relationship with the customers of the bank. Only when an investment advisor is able to maintain a healthy relationship with the client, he is able to induce the investor to invest.

Ensure that the portfolio does not consist of new fund offers only. This is a major area of concern. Investment Advisors get a higher incentive for promoting IPOs. However, all Mutual Fund IPOs do not fare well. So the portfolio should be made to include some well performing schemes apart from new fund offers. This is supported by the fact that investors consider return as one of the important factors for investing in fund.

Open ended growth schemes are the most popular. The bank should aim at selling these especially to investors who have a long term perspective and are moderate to high risk takers. Regularly review the portfolio and see how well it is performing. This would bring to front any investments which are not yielding the desired returns.

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SUGGESTIONS & RECOMMENDATIONS

The following must be taken by the RELIANCE to improve its business: In the competitive scenario, the brokerage must be made competitive. The account opening charges must be reduced to make it more competitive. There must be proper advertising in the local newspapers of Chandigarh, so that untapped market can be tapped. Some newspapers and magazines must be kept in the middle of the office so that if some clients or potential investors come to office, they can read some of them to know about the market. It is recommended investors should make a fundamental analysis of the companies scrip in which he wants to invest. Some analysis is not provided by broker. Should have the market knowledge before investing. The firm should target investors who are risk takers

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LIMITATIONS

Only certain indicators were applied to certain shares which not hard and fast rules which can be applied while is buying the shares.

Investors of only Chandigarh and nearby places were covered.

As a trainee, limitation of analyzing and interpreting the data.

Time constraint was the main hurdle in conducting survey and taking out the ratios.

People don't respond in a very good manner and they don't give time for filling up the questionnaires.

Only dividend discount model and CAPM model has been applied for valuation of the shares.

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CHAPTER NO. VIII BIBLIOGRAPHY & REFERENCES

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BIBLIOGRAPHY & REFERENCES

Books :

Donalde. Fischer and Ronald J. Jordan ,SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT 6TH Addition, Pearson Education India, Mumbai

Outlook Money 30th April 2007 Mutual Funds Insight 15 April to 14 May 2007 Mutual Funds Strategic Initiatives, by Manish Bansal. Economic Times MF Tracker 7th May 2007 Outlook Money the laymans guide to mutual funds KIMs of all major Mutual Funds AMFI Advisors Module preparation material Lawler III E and Porter L, (1966). Managers pay and their satisfaction with their pay. Personnel Psychology. . Elizur D & Shye S 1990 Quality of work life and its relation to quality of life. Applied psychology: An international review. Herzberg F, Mausner B, & Snyderman B., (1959) The Motivation to Work. New York:Wiley. Kothari C, (1995) Research Methodology : New age international publications. Rao VSP 1990 Human resource Management. : Excel Books Armstrong, M, Cummins, A, Hastings, S and Wood, W (2003) Guide to Job Evaluation,Kogan Page, London Kessler, S and Undy, R (1996) The New Employment Relationship: Examining the psychological contract, Institute of Personnel and Development, London

Websites :

www.mutualfundsindia.com www.amfiindia.com www.valueresearchonline.com www.moneycontrol.com/india/newsarticle/news_print.php www.ril.com


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CHAPTER NO. IX APPENDIX

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Appendix 1 Company Profile The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 684 branches spread over 316 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centres where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a strong and active member base.

The Bank also has a network of about over 1663 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders. HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People. Services HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments:
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Wholesale Banking Service The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporates and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognised as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks. Retail Banking Services The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form.

HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Mastercard Maestro debit card as well. The Bank launched its credit card business in late 2001. By September 30, 2005, the bank had a total card base (debit and credit cards) of 5.2 million cards. The Bank is also one of the leading players in the "merchant acquiring" business with over 50,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments.
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Treasury Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the financial markets in India, corporates need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.

Appendix 2 Questionnaire Name: Age: Profession: Service Business Self Employed Retired Not Employed Annual Income: Less than 2 Lakhs 2 Lakhs to 3.5 Lakhs 3.5 Lakhs to 5 Lakhs Above 5 Lakhs How would you rate your risk taking capacity? Low Moderate High Do you invest in Mutual Funds? Yes No If No, can you please specify the reason for the same? Lack of time Dont have ability to design a portfolio Regularly manage a portfolio
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Risk Factors Cant say

Would you invest in Mutual Funds if advised by an investment advisor? Yes No Cant say

What percentage of your investments are in Mutual Funds on an average? 0-10% 10-25% 25-50% above 50% What is your preference among the kinds of Mutual Funds? Growth Income Balanced Sectoral ELSS What is your preference among the schemes? Open ended Closed ended What factors do you consider important before investing in Mutual Funds? Returns Risk Factors Reputation of AMC Constitution of the portfolio Tax benefit Investment advisors suggestions

Thank you for your time.

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Appendix 3 PERFORMANCE OF MUTUAL FUNDS IN INDIA: Diversified Equity Funds Rank 1 Scheme Returns (%) NAV RAR2 Star Launch Since (Rs)1 (%) Ratings 1-Yr 3-Yr 5-Yr inception 30-Nov203.28 60.87 81.83 54.63 26.66 8.5 ***** 93 34.43 3-Jul-99 73.18 82.13 49.81 45.58 65.09 29.44 49.26 69 33.99 31.01 34.16 14.66 14.11 26.79 27.39 41.25 13.79 27.64 14.01 33.27 20.9 29.61 25.66 23.88 28.08 30.37 18.07 31.3 7.1 6.5 6.3 6.3 6.2 6.1 6.1 6 6 6 5.9 5.7 5.5 5.5 5.5 5.5 5.5 5.4 5.2 ***** ***** ***** ***** **** **** **** **** **** **** **** **** **** **** **** **** *** *** ***

Franklin India Prima SBI Magnum 2 Contra

14-Feb00 HDFC Capital 31-Dec4 62.92 Builder 93 SBI Magnum 30-Sep5 37.89 Global Fund 94 94 15-Apr6 DSP ML Equity 40.57 97 DSP ML 10-Apr7 50.09 Opportunities 00 Birla SunLife 27-Aug8 161.16 Equity 98 Birla SunLife 15-Jan9 25.71 Buy India 00 31-Aug10 HDFC Top 200 98.54 96 SBI Magnum 28-Feb11 Multiplier Plus 48.86 93 93 7-Oct12 Reliance Growth 240.14 95 Kotak MNC 24-Mar13 28.24 Fund 00 UTI Master 30-Jun14 30.66 Value 98 HDFC Growth 10-Aug15 43.12 Fund 00 HDFC Equity 24-Dec16 130.51 Fund 94 7-Oct17 Reliance Vision 161.86 95 22-Dec18 Kotak 30 62.08 98 22-Apr19 Birla MNC 124.57 94 Franklin India 30-Nov20 116.33 Bluechip 93 3 Tata Pure Equity 57.98

81.33 82.05 35.63 55.37 66.2 30.41 52.4 66.97 35.62 56.37 69.7 30.75 58.24 65.95 29.08 57.27 66.9 39.34 72.45 69.89 22.64 70.29 83.75 50.81 49.43 56.93 25.7 40.51 58.07 36.7 41.88 57.2 28.99 65.23 67.62 41.42 55.14 67.66 46.96 51.19 58.14 28.38 47.45 50.85 26.9 42.74 57.27 32.13
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28-Oct99 24-Feb22 Birla Advantage 116.81 95 20-Apr23 UTI Equity 33.34 92 24-Aug24 Pru ICICI Power 71.61 94 31-Dec25 Canfortune 94 32.63 94 Templeton India 26-Aug26 60.88 Growth 96 Franklin India 28-Sep27 117.09 Prima Plus 94 Sundaram 15-Feb28 64.71 Growth Fund 97 UTI Growth 26-Jun29 Sector 41.96 99 Services UTI Master 18-Feb30 41.35 Growth 93 Chola Growth 7-Sep31 28.07 Fund 01 29-May32 UTI MNC Fund 37.77 98 Morgan Stanley 19-Jan33 49.86 Growth3 94 UTI Masterplus 31-Dec34 59.72 Unit Scheme 91 91 Principal Growth 25-Oct35 49.12 Fund 00 9-Jan36 LIC MF Growth 10.81 94 Principal 30-Jun37 Resurgent India 65.49 00 Eq Canexpo 14-May38 53.28 Growth Plan 94 SBI Magnum 1-Jan39 28.99 Equity 91 Pru ICICI 19-Jun40 Growth Plan 84.52 98 Cumul 31-Dec41 JM Equity 34.57 94 UTI 18-Oct42 32.05 Mastershare 86 21 55.7

UTI Growth & Value

41.46 58.71 31.29 45.64 56.45 24.61 41.79 50.99 25.63 49.95 60.42 33.78 53.67 56.56 33.56 36.03 56.88 32.37 50.04 57.34 34.39 44.19 56.79 30.27 44.42 52.16 20.45 31.83 50.79 23.45 43.24 53.92 20.87 42.68 49.22 24.01 49.63 49.19 25.7 37.68 46.96 23.45 40.92 55.18 30.87 34.36 52.77 22.74 36.47 59.05 39.1 36.29 53.94 21.78 44.36 49.94 18.16 52.74 48.99 26.2 53.46 54.55 23.29 33.07 43.08 20.87

28.44 24.88 10.31 16.33 9.52 20.37 21.79 24.21 35.38 12.97 43.07 19.21 15.55 14.15 29.48 12.09 35.44 14.36 14.72 28.53 10.12 13.31

5.2 5.1 5.1 5.1 5 5 5 4.9 4.9 4.6 4.6 4.6 4.5 4.3 4.3 4.1 4 4 3.9 3.9 3.8 3.8

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