COMPANY PROFILE

KARVY, is a premier integrated financial services provider, and ranked among the top five
in the country in all its business segments, services over 16 million individual investors in various
capacities, and provides investor services to over 3 corporates, comprising the !ho is !ho of
"orporate #ndia$ KARVY covers the entire spectrum of financial services such as %tock broking,
&epository 'articipants, &istribution of financial products ( mutual funds, bonds, fi)ed deposit,
e*uities, #nsurance +roking, "ommodities +roking, 'ersonal ,inance Advisory %ervices, -erchant
+anking . "orporate ,inance, placement of e*uity, #'/0s, among others$ 1e appreciate that
karvy is the one of the main registrar for #'/0s registration$ +ig companies like #nfosys, 1ipro, Acc,
2-R(infra and other companies are registered under karvy only$
Karvy has a professional management team and ranks among the best in technology, operations
and research of various industrial segments$
Karvy Stock Broking:
KARVY %tock +roking 3imited, one of the cornerstones of the KARVY edifice, flo!s freely
to!ards attaining diverse goals of the customer through varied services$ #t creates a plethora of
opportunities for the customer by opening up investment vistas backed by research(based
advisory services$ 4ere, gro!th kno!s no limits and success recogni5es no boundaries$ 4elping
the customer create !aves in his portfolio and empo!ering the investor completely is the ultimate
goal$ KARVY %tock +roking 3imited is a member of6
7ational %tock 8)change 97%8:
+ombay %tock 8)change 9+%8:
4yderabad %tock 8)change 94%8:
Demat Service:
Karvy is a depository participant !ith the 7ational %ecurities &epository 3imited 97%&3: for
trading and settlement of demateriali5ed shares$
&epository 'articipants 9&'s: are described as an agent of the depository$ ;hey are
intermediaries bet!een the depository and the investors$ ;he relationship bet!een the &'s and
the depository is governed by an agreement made bet!een the t!o under &epositories Act$
%ince Karvy is also in the broking business, investors !ho use Karvy0s depository services get a
dual benefit$ ;hey can use Karvy0s brokerage services to e)ecute transactions and Karvy0s
depository services to settle them$
Page 1
B!ine Mo"e#
Karvy %tock +roking 3imited
KARVY %tock +roking 3imited, one of the cornerstones of the KARVY edifice, flo!s freely to!ards
attaining diverse goals of the customer through varied services$ #t creates a plethora of
opportunities for the customer by opening up investment vistas backed by research(based
advisory services$ 4ere, gro!th kno!s no limits and success recogni5es no boundaries$ 4elping
the customer create !aves in his portfolio and empo!ering the investor completely is the ultimate
goal$ KARVY %tock +roking 3imited is a member of6
< 7ational %tock 8)change 97%8:
< +ombay %tock 8)change 9+%8:
< 4yderabad %tock 8)change 94%8:
Karvy Comtra"e Limite"
"ommodities market, contrary to the beliefs of many people, has been in e)istence in #ndia
through the ages$ 4o!ever the recent attempt by the 2overnment to permit -ulti(commodity
7ational levels e)changes has indeed given it, a shot in the arm$ As a result t!o e)changes -ulti
"ommodity 8)change 9-"=: and 7ational "ommodity and derivatives 8)change 97"&8=: have
come into being$ ;hese e)changes, by virtue of their high profile promoters and stakeholders,
bundle in themselves, online trading facilities, robust surveillance measures and a hassle(free
settlement system$ ;he futures contracts available on a !ide spectrum of commodities like 2old,
%ilver, "otton, %teel, %oya oil, %oya beans, 1heat, %ugar, "hana etc$, provide e)cellent
opportunities for hedging the risks of the farmers, importers, e)porters, traders and large scale
consumers$
1ith the high *uality infrastructure already in place and a committed 2overnment providing
continuous impetus, it is the responsibility of the intermediaries to deliver these benefits at the
door(steps of their esteemed customers$ 1ith their e)pertise in financial services, e)istence
across the lengths and breadths of the country and an enviable technological edge, they are all set
to bring to the customers, the pleasure of investing in this burgeoning market, !hich can touch
upon the lives of a vast ma>ority of the population from the farmer to the corporate alike$ ;hey are
confident that the commodity futures can be a good value addition to the customer0s portfolio$
;he company provides investment, advisory and brokerage services in #ndian "ommodities
-arkets$ And most importantly, they offer a !ide reach through their branch net!ork of over ??@
branches located across 1A cities$
Page ?
Karvy In!rance Broking Limite"
At Karvy #nsurance +roking 3imited they provide both life and non(life insurance products to
retail individuals, high net(!orth clients and corporates$ 1ith the opening up of the insurance
sector and !ith a large number of private players in the business they are in a position to provide
tailor made policies for different segments of customers$ #n their >ourney to emerge as a personal
finance advisor, they are in a better positioned to leverage their relationships !ith the product
providers and place the re*uirements of their customers appropriately !ith the product providers$
1ith #ndian markets seeing a sea change, both in terms of investment pattern and attitude of
investors, insurance is no more seen as only a ta) saving product but also as an investment
product$ +y setting up a separate entity, they !ould be positioned to provide the best of the
products available in this business to their customers$ ;heir !ide national net!ork, spanning the
length and breadth of #ndia, further supports these advantages$ ,urther, personali5ed service is
provided here by a dedicated team committed in giving hassle(free service to the clients$
Karvy Invetor Service Limite"
&eepening of the ,inancial -arkets and an ever(increasing sophistication in corporate
transactions, has made the role of #nvestment +ankers indispensable to organi5ations seeking
professional e)pertise and counselling, in raising financial resources through capital market apart
from "apital and "orporate restructuring, -ergers . Ac*uisitions, 'ro>ect Advisory and the entire
gamut of ,inancial -arket activities$
Karvy #nvestor %ervices 3imited 9BK#%30:, a %8+# registered -erchant +anker has emerged as a
leading #nvestment +anking entity in the country !ith over a decade of e)perience$ K#%3 has built
its reputation by capitali5ing on its *ualified professionals, !ho have successfully e)ecuted a large
number of comple) and uni*ue transactions$
;heir *uality professional team and !ork(oriented dedication have propelled them to offer value(
added corporate financial services and act as a professional navigator for long term gro!th of their
clients, !ho include leading corporates, %tate 2overnments, ,oreign #nstitutional #nvestors, public
and private sector companies and banks, in #ndian and global markets$ ;hey have also emerged
as a trailbla5er in the arena of relationships, both at the customer and trade levels because of their
unshakable integrity, seamless service and innovative solutions that are tuned to meet varied
needs$ ;heir team of committed industry specialists, having e)tensive e)perience in capital
markets, further nurtures this relationship$
Page 3
Cre"entia#
< 8merging as a leading #nvestment +anker !ith a strong support from its 2roup entities in
Research, %tock +roking, #nstitutional %ales and Retail &istribution$
< %trong team of more than ?@ *ualified professionals operating from si) citiesC 4yderabad,
-umbai, &elhi, Kolkata, "hennai, and +angalore apart from t!o overseas offices at 7e! York
9D%A: and &ubai$
< /ne of the largest retail distribution net!orks !ith over @AE branches in over 3AF
citiesGto!ns$
< 8)cellent #nstitutional %ales &esk$
Karvy Rea#ty $In"ia% Limite"
Karvy Realty 9#ndia: 3imited 9KR#3: is promoted by the Karvy 2roup, #ndia0s largest financial
services group$ ;he group carries for!ard its legacy of trust and e)cellence in investor and
customer services delivered !ith passion and the highest level of *uality that align !ith global
standards$
Karvy Realty 9#ndia: 3imited is engaged in the business of real estate and property services
offering6
< +uyingG sellingG renting of properties
< #dentifying valuable investments opportunities in the real estate sector
< ,acilitating financial support for real estate and investments in properties
< Real estate portfolio advisory services$
KR#3 is a personal real estate advisor guiding and hand holding the client through real estate
transactions and offering valuable investment opportunities$
+uilding on the KARVY brand as a leading industry benchmark for !orld class customer servicing
and *uality standards, KR#3 brings to investors a reputation of reliability, dependability and
honesty$ ;heir understanding of the needs and preferences of their clients and our teams of
*ualified realty professionals help us to establish fruitful relationships !ith buyers and sellers of
properties alike$
A single stop shop for realty services offering6
< ;ransacting /ptions6 "hoose to buy, sell or rent properties 9residential and commercial:
Page E
< #nvesting /ptions6 2ive your investments a good opportunity !ith properties marketed by
KR#3$
< ,inancing /ptions6 2et unmatched deals for financing your investment
< Research /ptions6 they undertake valuation and feasibility studies, area analysis and
customi5ed analysis on behalf of clients$
KR#3 has ongoing relations !ith builders and developers across the country !hich !ill help the
client place your investments in the most genuine properties for a good value appreciation at the
right place and at the right price$
KR#3 is committed to the guiding principles of *uality, timely service delivery, fair pricing,
transparency and integrity
Karvy Com&!ter'are $P% Limite"
Karvy "omputershare 'rivate 3imited is a >oint venture bet!een "omputershare, Australia and
Karvy "onsultants 3imited, #ndia in the registry management services industry$
"omputershare, Australia is the !orld0s largest and only global share registry providing financial
market services and technology to the global securities industry$
Karvy "orporate and -utual ,und %hare Registry and #nvestor %ervices business, #ndiaHs 7o$ 1
Registrar and ;ransfer Agent and rated as #ndiaHs I-ost Admired RegistrarI for its overall
e)cellence in volume management, *uality processes and technology driven services$
Karvy "omputershare came into e)istence !ith the coming together of t!o stal!arts J
"omputershare on the global scale and Karvy in the #ndian domestic markets$ ;he @6@ ventures
!ould bring together global capabilities and local e)pertise in carrying for!ard the legacy of
comprehensive registry management services in #ndia and across the globe$
"omputershare has over 6 e)perienced professionals, "omputershare operates in five
continents, providing services and solutions to listed companies, investors, employees, e)changes
and other financial institutions !hile Karvy has handled over 6K@ issues as Registrar to #ssues
servicing over 16 million investors from multiple locations across #ndia$
Karvy "omputershare is all geared up to establish a ne! paradigm in service delivery driven by
benchmark operations management practices, the highest *uality standards and state(of(the(art
technology to service its clients and the investor community at large$ ;he rapid developments in
the #ndian securities market infrastructure, regulatory environment and internationali5ation of the
#ndian economy provides outstanding opportunities for them to leverage on each other0s
capabilities to provide cross border transactions and a larger service portfolio to their foreign
multinational as !ell as #ndian multinational clients$
;he combination of local kno!ledge and global e)pertise !ith technological innovations is going to
mark the emergence of a fully integrated services provider !ith cross border capabilities$
Page @
Karvy (#o)a# Service Limite"
;hey have a simple approach to doing business$
I/ur clients are our business partners$ /ur goal is to help them succeedI$
;he key values that transcend the organi5ation are6
< #ntegrity in all business functions
< ;ransparency in the organi5ation
< 'erformance based culture
;hey are guided by their mission that outlines the premise for their values and !hat they each can
do to thrive and gro!$ #t is an ingrained focus that keeps them moving in the right direction on their
>ourney to build a responsive company$
;heir customers form an important part of their mission that inspires, empo!ers and it makes
them accountable to one another$
%!ings in commodity prices that used to take years are happening in days, e*uity markets are
roller coasters, and +R#" economies have gone from being the ne)t big thing to dead in the !ater
to, potentially, the ne)t big thing$
#t is hard to stay in front$
Karvy 2lobal %ervices is a kno!ledge services company$ ;hey provide specialist resources to
e)tend in house analyst teams in driving clear business results$ ;hey serve investment banks,
insurance providers, brokerages, hedge funds, research agencies, and life settlement providers
across the Dnited %tates, -iddle 8ast, and 8urope$ ;heir clients have found their cost advantage,
ability to scale efforts, and specialist kno!ledge regarding emerging markets to be a strong
advantage in the ne!, fast, and unpredictable !orld$
;heir areas of focus include e*uity and industry research, commodity research, credit analytics,
technology(based !orkflo! solutions, insurance policy and portfolio valuation, and other
speciali5ed services$
#ncorporated in ?E, they are backed by over ?@ years of e)perience through #ndia0s largest
financial services company, the Karvy 2roup$ ;hey are head*uartered in 7e! York and have their
primary delivery center in 4yderabad, #ndia$
;hey encourage their clients to contact them to evaluate their research or outsourcing needs$
Page 6
/ur clients are our business partners$ /ur goal is to help them succeedI$

;he key values that transcend the organi5ation are6
< #ntegrity in all business functions
< ;ransparency in the organi5ation
< 'erformance based culture
;hey are guided by our mission that outlines the premise for their values and !hat they each can
do to thrive and gro!$ #t is an ingrained focus that keeps them moving in the right direction on their
>ourney to build a responsive company$
;heir customers form an important part of their mission that inspires, empo!ers and it makes them
accountable to one another
Karvy &ata -anagement %ervices 3imited
%ince its inception in 1FA?, Karvy has demonstrated a dedication coupled !ith dynamism that has
inspired trust from various segments, corporates, government bodies and individuals$ Karvy has
since been performing a pivotal role as the interface bet!een these players$
;heir ability to mass customi5e and offer a diverse range of products for a diverse range of
customers has helped corporates to uni*uely position themselves in the market place$ ;his
diverse range of services cut across multiple delivery channels, service centers, !eb, and mobile
phones, call center and has brought home the benefits of technology to customers, middle men
and corporates$
2oing for!ard, they !ill create ne! products and services, !hich !ould address the needs of the
end customer$ ;heir single minded focus in delivering products for customers has given them the
distinguished position of being the preferred provider of financial services in the country$
O!r C#ient O!r Foc! *
"lients are the reason for their being personali5ed service, professional care, pro(activeness are
the values that help them nurture enduring relationships !ith their clients$
Respect for the individual J
8ach and every individual is an essential building block of their organi5ation they are the kiln that
hones individuals to perfection$ +e they the employees, shareholders or investors$ ;hey do so by
upholding their dignity . pride, inculcating trust and achieving a sensitive balance of their
professional and personal lives$
;eam!ork ( 7one of them is more important than all
Page K
8ach team member is the face of Karvy$ ;ogether they offer diverse services !ith speed, accuracy
and *uality to deliver only one product6 e)cellence$ ;ransparency, co(operation, invaluable
individual contributions for a collective goal, and respecting individual uni*ueness !ithin a
corporate !hole, are ho! they deliver again and again$
Responsible "iti5enship ( A social balance sheet is as re!arding as a business one
As a responsible corporate citi5en, their duty is to foster a better environment in the society !here
they live and !ork$ Abiding by its norms, and behaving responsibly to!ards the environment, are
some of their gro!ing initiatives to!ards reali5ing it$
Integrity + Everyt'ing e#e i econ"ary
'rofessional and personal ethics are their bedrock$ they take pride in an environment that
encourages honesty and the opportunity to learn from failures than camouflage them$ they insist
on consistency bet!een !orks and actions$
Karvy Con!#tant Limite"
As the flagship company of the KARVY 2roup, KARVY "onsultants 3imited has al!ays remained
at the helm of organi5ational affairs, pioneering business policies, !ork ethic and channels of
progress$ 4aving emerged as a leader in the registry business, the first of the businesses that they
ventured into, they have no! transferred this business into a >oint venture !ith "omputershare
3imited of Australia, the !orld0s largest registrar$ 1ith the advent of depositories in the #ndian
capital market and the relationships that they have created in the registry business, they believe
that they !ere best positioned to venture into this activity as a &epository 'articipant$ they !ere
one of the early entrants registered as &epository 'articipant !ith 7%&3 97ational %ecurities
&epository 3imited:, the first &epository in the country and then !ith "&%3 9"entral &epository
%ervices 3imited:$ ;oday, they service over seven lakh customer accounts in this business spread
across over @E citiesGto!ns in #ndia and are ranked amongst the largest &epository 'articipants
in the country$ 1ith a gro!ing secondary market presence, they have transferred this business to
KARVY %tock +roking 3imited 9K%+3:, our associate and a member of 7%8, +%8 and 4%8$
4aving emerged as a leader in the registry business, the first of the businesses that they ventured
into, they have no! transferred this business into a >oint venture !ith "omputershare 3imited of
Australia, the !orld0s largest registrar$ 1ith the advent of depositories in the #ndian capital market
and the relationships that they have created in the registry business, they believe that they !ere
best positioned to venture into this activity as a &epository 'articipant$ ;hey !ere one of the early
entrants registered as &epository 'articipant !ith 7%&3 97ational %ecurities &epository 3imited:,
the first &epository in the country and then !ith "&%3 9"entral &epository %ervices 3imited:$
;oday, they service over 6 lakhs customer accounts in this business spread across over ?@
citiesGto!ns in #ndia and are ranked amongst the largest &epository 'articipants in the country$
1ith a gro!ing secondary market presence, they have transferred this business to Karvy %tock
+roking 3imited 9K%+3:, their associate and a member of 7%8, +%8 and 4%8$
Page A
I, ena)#e" ervice
;heir ;echnology %ervices division forms the ideal platform to unleash their technology initiatives
and make their presence felt on the #nternet$ ;heir past achievements include many *uality
!ebsites designed, developed and deployed by them$ ;hey also possess their o!n !eb hosting
facilities !ith dedicated band!idth and a state(of(the(art server farm 9data center: !ith services
functioning on a variety of operating platforms such as 1indo!s, %olaris, 3inu) and Dni)$
;he corporate !ebsite of the company, L!!!$karvy$comM, gives access to in(depth information on
financial matters including -utual ,unds, #'/s, ,i)ed #ncome %chemes, #nsurance, %tock -arket
and much more$ A link called BResource "enter0, devoted solely to research conducted by their
team of e)perts on various financial aspects like B%ector Research0, deals e)clusively !ith in(depth
analysis of the key sectors of the #ndian economy$ +esides, a host of other links like B-y 'ortfolio0
!hich acts as a personali5ed and customi5ed financial measure, makes this site e)tremely
informative about investment options, market trends, ne!s as also about their company and each
of the services offered here$
'R/&D";% . %8RV#"8%6
Retail %ervices
8*uities and &erivatives
"ommodities
-utual ,und %ervices
&epository %ervices
#nsurance +roking %ervices
+onds and &eposits
Realty %ervices
'ortfolio -anagement %ervices
#nstitutional %ervices
Registrar and ;ransfer Agency
-utual ,und Registry
#nvestment +anking
corporate finance
Page F
#nstitutional +roking
&ebt -arket %ervices
+'/ and K'/ %ervices
"orporate Advisor
On#ine tock )roking ervice:
'roduct ,eatures
1eb G 8)ecutable Version J Absolutely free
/nline trading for +%8 "ash, 7%8 cash . 7%8 ,./$
/nline -arket !atch for +%8 "ash, 7%8 cash . 7%8 ,./$
#nde) 'rice graphs are available$
/nline RiskG8)posure calculations$
-arket to -arket 'G3 alerts$
Receivables . payables statements for stock . cash$
#ntraday . delivery Alerts$
&igital "ontract notes$
Recommendations J 'op up facility$
"all center %ervice$
+alance %tatement$
/rder 8ntry$
/rder "onfirmation$
;rade "onfirmation$
-argin "omputations$
%tatements 9-argin .3imits, "ash, %tock, 7et !orth:
Page 1
/nline interface !ith 4&,"G#&+#GD;#G#"#"
-IS,ORY:
;he birth of Karvy !as on a modest scale in 1FA1$ #t began !ith the vision and enterprise of
a small group of practicing "hartered Accountants !ho founded the flagship company$ Karvy
"onsultants 3imited$ #t started !ith consulting and financial accounting automation, and carved
inroads into the field of registry and share accounting by 1FA@$ %ince then, it have utili5ed its
e)perience and superlative e)pertise to go from strength to strength, to better its services, to
provide ne! ones, to innovate, diversify and in the process, evolved Karvy as one of #ndia0s
premier integrated financial service enterprise$
;hus over the last ? years Karvy has traveled the success route, to!ards building a
reputation as an integrated financial services provider, offering a !ide spectrum of services$ And
Karvy have made this >ourney by taking the route of *uality service, path breaking innovations in
service, versatility in service and finally$ 7o! it is totality in the service segment$
#ts highly *ualified manpo!er, cutting(edge technology, comprehensive infrastructure and
total customer(focus has secured for them the position of an emerging financial services giant
en>oying the confidence and support of an enviable clientele across diverse fields in the financial
!orld$
#ts values and vision of attaining total competence in its servicing has served as the building
block for creating a great financial enterprise, !hich stands solid on its fortresses of financial
strength J its various companies$ 1ith the e)perience of years of holistic financial servicing behind
Page 11
it and years of complete e)pertise in the industry to look for!ard to, Karvy have no! emerged as a
premier integrated financial services provider$ And today, Karvy can look !ith pride at the fruits of
its mastery and e)perience J comprehensive financial services that are competently segregated to
service and manage a diverse range of customer re*uirements$
Ac'ievement
Among the top @ stock brokers in #ndia 9EN of 7%8 volumes:$
#ndiaHs 7o$ 1 Registrar . %ecurities ;ransfer Agents$
Among the t!o top 3 &epository 'articipants$
3argest 7et!ork of +ranches . +usiness Associates$
#%/ F? certified operations by &7V$
Among top 1 #nvestment bankers$
3argest &istributor of ,inancial 'roducts$
Ad>udged as one of the top @ #; uses in #ndia by -#% Asia$
,ull ,ledged #; driven operations$
KAR.Y AS AN OR(ANI/A,ION

KARVY, is a premier integrated financial services provider, and ranked among the top five in the
country in all its business segments, services over 16 million individual investors in various
capacities, and provides investor services to over 3 corporate, comprising the !ho is !ho of
"orporate #ndia$
KARVY covers the entire spectrum of financial services such as %tock broking,
&epository 'articipants, &istribution of financial products ( mutual funds, bonds, fi)ed deposit,
e*uities, #nsurance +roking, "ommodities +roking, 'ersonal ,inance Advisory %ervices, -erchant
+anking . "orporate ,inance, placement of e*uity, #'/s, among others$ Karvy has a professional
management team and ranks among the best in technology, operations and research of various
industrial segments$
Karvy J 8arly &ays6(
Page 1?
;he birth of Karvy !as on a modest scale in 1FA1$ #t began !ith the vision and enterprise of
a small group of practicing "hartered Accountants !ho founded the flagship company$
Karvy "onsultants 3imited$ %tarted !ith consulting and financial accounting automation,
and carved inroads into the field of registry and share accounting by 1FA@$ %ince then, Karvy used
its e)perience and superlative e)pertise to go from strength to strength, to better services, to
provide ne! ones, to innovate, diversify and in the process, evolved Karvy as one of #ndia0s
premier integrated financial service enterprise$
;hus over the last ? years Karvy has traveled the success route, to!ards building a reputation as
an integrated financial services provider, offering a !ide spectrum of services$ And have made this
>ourney by taking the route of *uality service, path breaking innovations in service, versatility in
service and finally totality in service$
KARVY highly *ualified manpo!er, cutting(edge technology, comprehensive infrastructure and
total customer(focus has secured for the position of an emerging financial services giant en>oying
the confidence and support of an enviable clientele across diverse fields in the financial !orld$
Values and vision of attaining total competence in servicing has served as the building block for
creating a great financial enterprise, !hich stands solid on our fortresses of financial strength (
various companies$
"ompany of the Karvy 2roup, Karvy "onsultants 3imited has al!ays remained at the helm of
organi5ational affairs, pioneering business policies, !ork ethic and channels of progress$
Mi#etone o0 Karvy

< #7"8';#/7 1FKF
< "orporate Registry services 1FA@
< %tock +roking . #%"s 1FF
< ,inancial 'roduct &istribution 1FF3
< "orporate ,inance 1FF@
< &epository %ervices 1FFK
< #;8% . +'/ %ervices ?
Page 13
< 'ersonal ,inance Advisory %ervices ?1
< %econdary &ebt . 1&- %ervices ?3
< Ooint Venture !ith "omputer %hare ?E
< "omtrade ?E
B!ine O)1ective
"omprehensive #nvestor centric !ealth management #nformation %eamless integration !ith other
diversified systems for cross product aggregation Real time processing capabilities for collecting
and aggregating financial information
.AL2E ADDI,ION ,O ,-E COMPANY
;his report !ill help the company to strengthen customer intimacy$ ;he report on various
investment avenues available in #ndia !ill help the company in many areas like$
#t !ill help the company to understand the e)pectations the customer have about their company
from the perspective of financial performance and corporate social responsibility$
#t !ill provide fresh insights !hich can help their business continue to flourish$
;he company can identify the particular service re*uirements of different types of customers$
;he company can understand the problem areas$
;he company can evaluate ne! services initiatives$
;he study !ill help in gaining a better understanding of !hat an investor looks for in an investment
option$
Page 1E
#t can be used by the financial sector in designing better financial instrument customi5ed to suit the
needs of the investor$
#t !ill help agents and brokers in marketing the e)isting instruments$
#t !ill provide kno!ledge to the customer about the various financial services provided by the
company to their customers$
#t can help the company to understand !hat the re*uirement of the different categories of
customers is
;his report !ill be developed in order to empo!er companies !ith detailed primary market
research needed to make !ell informed decisions and it !ill provide independent measurement
and validation of the health of company0s relationship !ith their customers$ ;hese are the various
advantages !hich !ill give some value addition to the company in understanding the a!areness
level of the customer about the various investment options and !hat is the perception of the
investors !ith regard to the investments they !ant to make$
PRO3EC, DESCRIP,ION
M!t!a# F!n":+
-utual fund is a pool of money collected from investors and is invested according
to stated investment ob>ectives -utual fund investors are like shareholders and they o!n the fund$
-utual fund investors are not lenders or deposit holders in a mutual fund$ 8verybody else
associated !ith a mutual fund is a service provider, !ho earns a fee$ ;he money in the mutual
fund belongs to the investors and nobody else$ -utual funds invest in marketable securities
according to the investment ob>ective$ ;he value of the investments can go up or do!n, changing
the value of the investor0s holdings$7AV of a mutual fund fluctuates !ith market price movements$
;he market value of the investors0 funds is also called as net assets$ #nvestors hold a
proportionate share of the fund in the mutual fund$ 7e! investors come in and old investors can
e)it, at prices related to net asset value per unit$
Page 1@
Emergence o0 M!t!a# F!n":+
-utual ,unds no! represent perhaps the most appropriate investment opportunity for
most small investors$ As financial markets become more sophisticated and comple), investor need
a financial intermediary !ho provides the re*uired kno!ledge and professional e)pertise on
successful investing$ #t is no !onder then that in the birthplace of mutual funds(the D$%$A$(the fund
industry has already overtaken the banking industry, !ith more money under -utual ,und
management than deposited !ith banks$
;he #ndian -utual ,und industry has already opened up many e)citing investment
opportunities to #ndian investors$ &espite the e)pected continuing gro!th in the industry, -utual
,und is a still ne! financial intermediary in #ndia$
-itory o0 M!t!a# F!n":+
#n the second half of 1Fth century, investor in DK considered the
stock market is good for the investment$ +ut for small investor it is not possible to operate in the
market effectively$ ;his led to establishment of an investment company !hich led to the small
investor to invest in e*uity market$ ;he first investment company !as the %cottish(American
#nvestment "ompany, set up in 3ondon in 1A6$
M!t!a# F!n" In"!try in In"ia:+
-utual ,und is an instrument of investing money$ 7o!adays, bank rates have fallen
do!n and are generally belo! the inflation rate$ ;herefore, keeping large amounts of money in
bank is not a !ise option, as in real terms the value of money decreases over a period of time$
/ne of the options is to invest the money in stock market$ +ut a common investor is not informed
and competent enough to understand the intricacies of stock market$ ;his is !here mutual funds
come to the rescue$ A mutual fund is a group of investors operating through a fund manager o!n$
Also, one doesnHt have to figure out !hich stocks or bonds to buy$ +ut the biggest advantage of
mutual funds is diversification$
&iversification means spreading out money across many different types of
investments$ 1hen one investment is do!n another might be up$ &iversification of investment
holdings reduces the risk tremendously$
#n 1F63, the government of #ndia took the initiative by passing the D;# act, under
!hich the Dnit ;rust of #ndia 9D;#: !as set(up as a statutory body$ ;he designated role of D;# !as
to set up a -utual ,und$ D;#0s first scheme, called$ #n 1FAK the other public sector institutions set
up their -utual ,unds$ #n 1FF?, government allo!ed the private sector players to set(up their
funds$ #n 1FFE the foreign -utual ,unds arrives in #ndian market$ #n ?1 there is a crisis in D;#
and in ?3 D;# splits up into D;# 1and D;# ?$ ;he history of #ndian -utual ,und industry can be
e)plained easily by various phases6(
to purchase a diverse portfolio of stocks or bonds$ -utual funds are highly cost efficient and very
easy to invest in$ +y pooling money together in a mutual fund, investors can purchase stocks or
bonds !ith much lo!er trading costs than if they tried to do it on their
Page 16
Bene0it o0 Inveting in M!t!a# F!n"
Pro0eiona# Management: +
-utual ,unds provide the services of e)perienced 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 ob>ectives of the scheme$
Diveri0ication: +
-utual ,unds invest in a number of companies across a broad cross(section of
industries and sectors$ ;his 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 -utual
,und !ith far less money than you can do on your o!n$
Convenient A"minitration: +
#nvesting in a -utual ,und reduces paper!ork and helps you avoid many problems such
as bad deliveries, delayed payments and follo! up !ith brokers and companies$ -utual ,unds
save your time and make investing easy and convenient$
Ret!rn Potentia#: +
/ver a medium to long(term, -utual ,unds have the potential to provide a higher return as
they invest in a diversified basket of selected securities$
Lo4 Cot:
-utual ,unds are a relatively less e)pensive !ay to invest compared to directly investing in
the capital markets because the benefits of scale in brokerage, custodial and other fees translate
into lo!er costs for investors$
Li5!i"ity: +
#n open(end schemes, the investor gets the money back promptly at net asset value related
prices from the -utual ,und$ #n closed(end schemes, the units can be sold on a stock e)change at
the prevailing market price or the investor can avail of the facility of direct repurchase at 7AV
related prices by the -utual ,und$
,ran&arency: +
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 managerHs investment strategy and outlook$
F#e6i)i#ity: +
Page 1K
;hrough features such as regular investment plans, regular !ithdra!al plans and dividend
reinvestment plans, you can systematically invest or !ithdra! funds according to your needs and
convenience$
A00or"a)i#ity: +
#nvestors individually may lack sufficient funds to invest in high(grade stocks$ A
mutual fund because of its large corpus allo!s even a small investor to take the benefit of its
investment strategy$
C'oice o0 Sc'eme: +
-utual ,unds offer a family of schemes to suit your varying needs over a lifetime$
7e## Reg!#ate":+
All -utual ,unds are registered !ith %8+# and they function !ithin the provisions of strict
regulations designed to protect the interests of investors$ ;he operations of -utual ,unds are
regularly monitored by %8+#$
Dia"vantage o0 Inveting M!t!a# F!n":+
Pro0eiona# Management: +
%ome funds doesn0t perform in neither the market, as their management is not dynamic
enough to e)plore the available opportunity in the market, thus many investors debate over
!hether or not the so(called professionals are any better than mutual fund or investor himself, for
picking up stocks$
Cot: *
;he biggest source of A-" income is generally from the entry . e)it load !hich they
charge from investors, at the time of purchase$ ;he mutual fund industries are thus charging e)tra
cost under layers of >argon$
Di#!tion: *
+ecause funds have small holdings across different companies, high returns from a fe!
investments often donHt make much difference on the overall return$ &ilution is also the result of a
Page 1A
successful fund getting too big$ 1hen money pours into funds that have had strong success, the
manager often has trouble finding a good investment for all the ne! money$
,a6e: +
1hen making decisions about your money, fund managers donHt consider your personal ta)
situation$ ,or e)ample, !hen a fund manager sells a security, a capital(gain ta) is triggered$
M!t!a# 0!n" c'eme may )e c#ai0ie" on t'e )ai o0 it tr!ct!re an" it o)1ective:+
By Str!ct!re:+
O&en+en"e" F!n":+
An open(end fund is one that is available for subscription all through the year$ ;hese do not
have a fi)ed maturity$ #nvestors can conveniently buy and sell units at 7et Asset Value 9I7AVI:
related prices$ ;he key feature of open(end schemes is li*uidity$
C#oe"+en"e" F!n":+
A closed(end fund has a stipulated maturity period !hich generally ranging from 3 to 1@
years$ ;he fund is open for subscription only during a specified period$ #nvestors 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 e)changes !here they are listed$ #n order to provide an e)it route to the
investors, some close(ended funds give an option of selling back the units to the -utual ,und
through periodic repurchase at 7AV related prices$ %8+# Regulations stipulate that at least one of
the t!o e)it routes is provided to the investor$
Interva# F!n":+
Page 1F
#nterval funds combine the features of open(ended and close(ended schemes$ ;hey are
open for sale or redemption during pre(determined intervals at 7AV related prices$
Money Market F!n":+
;he aim of money market funds is to provide easy li*uidity, preservation of capital and
moderate income$ ;hese 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$ ;hese
are ideal for "orporate and individual investors as a means to park their surplus funds for short
periods$
Loa" F!n":+
A 3oad ,und is one that charges a commission for entry or e)it$ ;hat is, each time you buy
or sell units in the fund, a commission !ill be payable$ ;ypically entry and e)it loads range from
1N to ?N$ #t could be !orth paying the load, if the fund has a good performance history$
No+Loa" F!n":+
A 7o(3oad ,und is one that does not charge a commission for entry or e)it$ ;hat is, no
commission is payable on purchase or sale of units in the fund$ ;he advantage of a no load fund is
that the entire corpus is put to !ork$
,a6 Saving Sc'eme:+
;hese schemes offer ta) rebates to the investors under specific provisions of the #ndian
#ncome ;a) la!s as the 2overnment offers ta) incentives for investment in specified avenues$
#nvestments made in 8*uity 3inked %avings %chemes 983%%: and 'ension %chemes are allo!ed
as deduction uGs AA of the #ncome ;a) Act, 1F61$ ;he Act also provides opportunities to investors
to save capital gains uGs @E8A and @E8+ by investing in -utual ,unds, provided the capital asset
has been sold prior to April 1, ? and the amount is invested before %eptember 3, ?$
.ario! ty&e o0 M!t!a# F!n":
E5!ity F!n": (
8*uity funds are considered to be the more risky funds as compared to other fund types,
but they also provide higher returns than other funds$ #t is advisable that an investor looking to
invest in an e*uity fund should invest for long term i$e$ for 3 years or more$ ;here are different
types of e*uity funds each falling into different risk bracket$ #n the order of decreasing risk level,
there are follo!ing types of e*uity funds6(
Page ?
A((RESSI.E (RO7,- F2NDS:+
#n Aggressive 2ro!th ,unds, fund managers aspire for ma)imum capital appreciation and
invest in less researched shares of speculative nature$ +ecause of these speculative investments
Aggressive 2ro!th ,unds become more volatile and thus, are prone to higher risk than other
e*uity funds$
(RO7,- F2NDS: +
2ro!th ,unds also invest for capital appreciation 9!ith time hori5on of 3 to @ years: but they
are different from Aggressive 2ro!th ,unds in the sense that they invest in companies that are
e)pected to outperform the market in the future$ 1ithout entirely adopting speculative strategies,
2ro!th ,unds invest in those companies that are e)pected to post above average earnings in the
future$
SPECIAL,Y F2NDS: +
%pecialty ,unds have stated criteria for investments and their portfolio comprises of
only those companies that meet their criteria$ "riteria for some specialty funds could be to
investGnot to invest in particular regionsGcompanies$ %pecialty funds are concentrated and thus,
are comparatively riskier than diversified funds$ ;here are follo!ing types of specialty funds6
Sector F!n":+
8*uity funds that invest in a particular sectorGindustry of the market are kno!n as %ector
,unds$ ;he e)posure of these funds is limited to a particular sector 9say #nformation ;echnology,
Auto, +anking, 'harmaceuticals or ,ast -oving "onsumer 2oods: !hich is !hy they are more
risky than e*uity funds that invest in multiple sectors$
Foreign Sec!ritie F!n":+
,oreign %ecurities 8*uity ,unds have the option to invest in one or more foreign
companies$ ,oreign securities funds achieve international diversification and hence they are less
risky than sector funds$ 4o!ever, foreign securities funds are e)posed to foreign e)change rate
risk and country risk$
Mi"+Ca& or Sma##+Ca& F!n":+
,unds that invest in companies having lo!er market capitali5ation than large capitali5ation
companies are called -id("ap or %mall("ap ,unds$ -arket capitali5ation of -id("ap companies
is less than that of big, blue chip companies 9less than Rs$ ?@ crore but more than Rs$ @
crore: and %mall("ap companies have market capitali5ation of less than Rs$ @ crore$ -arket
"apitali5ation of a company can be calculated by multiplying the market price of the companyHs
share by the total number of its outstanding shares in the market$ ;he shares of -id("ap or %mall(
"ap "ompanies are not as li*uid as of 3arge("ap "ompanies !hich gives rise to volatility in share
prices of these companies and conse*uently, investment gets risky$
O&tion Income F!n":+
Page ?1
1hile not yet available in #ndia, /ption #ncome ,unds !rite options on a large fraction of
their portfolio$ 'roper use of options can help to reduce volatility, !hich is other!ise considered as
a risky instrument$ ;hese funds invest in big, high dividend yielding companies, and then sell
options against their stock positions, !hich generate stable income for investors$
DI.ERSIFIED E82I,Y F2NDS: +
8)cept for a small portion of investment in li*uid money market, diversified e*uity
funds invest mainly in e*uities !ithout any concentration on a particular sector9s:$ ;hese funds are
!ell diversified and reduce sector(specific or company(specific risk$ 4o!ever, like all other funds
diversified e*uity funds too are e)posed to e*uity market risk$ /ne prominent type of diversified
e*uity fund in #ndia is 8*uity 3inked %avings %chemes 983%%:$ As per the mandate, a minimum of
FN of investments by 83%% should be in e*uities at all times$ 83%% investors are eligible to claim
deduction from ta)able income 9up to Rs 1 lakh: at the time of filing the income ta) return$ 83%%
usually has a lock(in period and in case of any redemption by the investor before the e)piry of the
lock(in period makes him liable to pay income ta) on such income9s: for !hich he may have
received any ta) e)emption9s: in the past$
E5!ity In"e6 F!n": +
8*uity #nde) ,unds have the ob>ective to match the performance of a specific stock
market inde)$ ;he portfolio of these funds comprises of the same companies that form the inde)
and is constituted in the same proportion as the inde)$ 8*uity inde) funds that follo! broad indices
9like %.' "7= 7ifty, %ense): are less risky than e*uity inde) funds that follo! narro! sectoral
indices 9like +%8+A7K8= or "7= +ank #nde) etc$:$ 7arro! indices are less diversified and
therefore, are more risky$
.AL2E F2NDS:+
Value ,unds invest in those companies that have sound fundamentals and !hose share
prices are currently under(valued$ ;he portfolio of these funds comprises of shares that are trading
at a lo! 'rice to 8arnings Ratio 9-arket 'rice per %hare G 8arning per %hare: and a lo! -arket to
+ook Value 9,undamental Value: Ratio$ Value ,unds may select companies from diversified
sectors and are e)posed to lo!er risk level as compared to gro!th funds or specialty funds$ Value
stocks are generally from cyclical industries 9such as cement, steel, sugar etc$: !hich make them
volatile in the short(term$ ;herefore, it is advisable to invest in Value funds !ith a long(term time
hori5on as risk in the long term, to a large e)tent, is reduced$
E82I,Y INCOME OR DI.IDEND YIELD F2NDS: +
;he ob>ective of 8*uity #ncome or &ividend Yield 8*uity ,unds is to generate high recurring
income and steady capital appreciation for investors by investing in those companies !hich issue
high dividends 9such as 'o!er or Dtility companies !hose share prices fluctuate comparatively
lesser than other companiesH share prices:$ 8*uity #ncome or &ividend Yield 8*uity ,unds are
generally e)posed to the lo!est risk level as compared to other e*uity funds$
DEB, 9 INCOME F2NDS:+
Page ??
,unds that invest in medium to long(term debt instruments issued by private companies,
banks, financial institutions, governments and other entities belonging to various sectors 9like
infrastructure companies etc$: are kno!n as &ebt G #ncome ,unds$ &ebt funds are lo! risk profile
funds that seek to generate fi)ed current income 9and not capital appreciation: to investors$ #n
order to ensure regular income to investors, debt 9or income: funds distribute large fraction of their
surplus to investors$ Although debt securities are generally less risky than e*uities, they are
sub>ect to credit risk 9risk of default: by the issuer at the time of interest or principal payment$ ;o
minimi5e the risk of default, debt funds usually invest in securities from issuers !ho are rated by
credit rating agencies and are considered to be of I#nvestment 2radeI$ &ebt funds that target high
returns are more risky$ +ased on different investment ob>ectives, there can be follo!ing types of
debt funds6(
Diveri0ie" De)t F!n": +
&ebt funds that invest in all securities issued by entities belonging to all sectors of the
market are kno!n as diversified debt funds$ ;he best feature of diversified debt funds is that
investments are properly diversified into all sectors !hich results in risk reduction$ Any loss
incurred, on account of default by a debt issuer, is shared by all investors !hich further reduces
risk for an individual investor$
Foc!e" De)t F!n": +
Dnlike diversified debt funds, focused debt funds are narro! focus funds that are confined
to investments in selective debt securities, issued by companies of a specific sector or industry or
origin$ %ome e)amples of focused debt funds are sector, speciali5ed and offshore debt funds,
funds that invest only in ;a) ,ree #nfrastructure or -unicipal +onds$ +ecause of their narro!
orientation, focused debt funds are more risky as compared to diversified debt funds$ Although not
yet available in #ndia, these funds are conceivable and may be offered to investors very soon$
-ig' Yie#" De)t 0!n": +
As !e no! understand that risk of default is present in all debt funds, and therefore, debt
funds generally try to minimi5e the risk of default by investing in securities issued by only those
borro!ers !ho are considered to be of Iinvestment gradeI$ +ut, 4igh Yield &ebt ,unds adopt a
different strategy and prefer securities issued by those issuers !ho are considered to be of Ibelo!
investment gradeI$ ;he motive behind adopting this sort of risky strategy is to earn higher interest
returns from these issuers$ ;hese funds are more volatile and bear higher default risk, although
they may earn at times higher returns for investors$
A!re" Ret!rn F!n": +
Although it is not necessary that a fund !ill meet its ob>ectives or provide assured returns to
investors, but there can be funds that come !ith a lock(in period and offer assurance of annual
Page ?3
returns to investors during the lock(in period$ Any shortfall in returns is suffered by the sponsors or
the Asset -anagement "ompanies 9A-"s:$ ;hese funds are generally debt funds and provide
investors !ith a lo!(risk investment opportunity$ 4o!ever, the security of investments depends
upon the net !orth of the guarantor 9!hose name is specified in advance on the offer document:$
;o safeguard the interests of investors, %8+# permits only those funds to offer assured return
schemes !hose sponsors have ade*uate net(!orth to guarantee returns in the future$ #n the past,
D;# had offered assured return schemes 9i$e$ -onthly #ncome 'lans of D;#: that assured specified
returns to investors in the future$ D;# !as not able to fulfill its promises and faced large shortfalls
in returns$ 8ventually, government had to intervene and took over D;#Hs payment obligations on
itself$ "urrently, no A-" in #ndia offers assured return schemes to invetor: t'o!g' &oi)#e;
Fi6e" ,erm P#an Serie: +
,i)ed ;erm 'lan %eries usually are closed(end schemes having short term maturity period
9of less than one year: that offer a series of plans and issue units to investors at regular intervals$
Dnlike closed(end funds, fi)ed term plans are not listed on the e)changes$ ,i)ed term plan series
usually invest in debt G income schemes and target short(term investors$ ;he ob>ective of fi)ed
term plan schemes is to gratify investors by generating some e)pected returns in a short period$
(IL, F2NDS:+
Also kno!n as 2overnment %ecurities in #ndia, 2ilt ,unds invest in government papers
9named dated securities: having medium to long term maturity period$ #ssued by the 2overnment
of #ndia, these investments have little credit risk 9risk of default: and provide safety of principal to
the investors$ 4o!ever, like all debt funds, gilt funds too are e)posed to interest rate risk$ #nterest
rates and prices of debt securities are inversely related and any change in the interest rates
results in a change in the 7AV of debtGgilt funds in an opposite direction$
MONEY MARKE, 9 LI82ID F2NDS:+
-oney market G li*uid funds invest in short(term 9maturing !ithin one year: interest
bearing debt instruments$ ;hese securities are highly li*uid and provide safety of investment, thus
making money market G li*uid funds the safest investment option !hen compared !ith other
mutual fund types$ 4o!ever, even money market G li*uid funds are e)posed to the interest rate
risk$ ;he typical investment options for li*uid funds include ;reasury +ills 9issued by
governments:, "ommercial papers 9issued by companies: and "ertificates of &eposit 9issued by
banks:$
-YBRID F2NDS:+
Page ?E
As the name suggests, hybrid funds are those funds !hose portfolio includes a blend of
e*uities, debts and money market securities$ 4ybrid funds have an e*ual proportion of debt and
e*uity in their portfolio$ ;here are follo!ing types of hybrid funds in #ndia6
Ba#ance" F!n": +
;he portfolio of balanced funds includes assets like debt securities, convertible securities,
and e*uity and preference shares held in a relatively e*ual proportion$ ;he ob>ectives of balanced
funds are to re!ard investors !ith a regular income, moderate capital appreciation and at the
same time minimi5ing the risk of capital erosion$ +alanced funds are appropriate for conservative
investors having a long term investment hori5on$
(ro4t'+an"+Income F!n": +
,unds that combine features of gro!th funds and income funds are kno!n as 2ro!th(
and(#ncome ,unds$ ;hese funds invest in companies having potential for capital appreciation and
those kno!n for issuing high dividends$ ;he level of risks involved in these funds is lo!er than
gro!th funds and higher than income funds$
ASSE, ALLOCA,ION F2NDS: +
-utual funds may invest in financial assets like e*uity, debt, money market or non(
financial 9physical: assets like real estate, commodities etc$$ Asset allocation funds adopt a
variable asset allocation strategy that allo!s fund managers to s!itch over from one asset class to
another at any time depending upon their outlook for specific markets$ #n other !ords, fund
managers may s!itch over to e*uity if they e)pect e*uity market to provide good returns and
s!itch over to debt if they e)pect debt market to provide better returns$ #t should be noted that
s!itching over from one asset class to another is a decision taken by the fund manager on the
basis of his o!n >udgment and understanding of specific markets, and therefore, the success of
these funds depends upon the skill of a fund manager in anticipating market trends$
COMMODI,Y F2NDS:+
;hose funds that focus on investing in different commodities 9like metals, food grains,
crude oil etc$: or commodity companies or commodity futures contracts are termed as "ommodity
,unds$ A commodity fund that invests in a single commodity or a group of commodities is a
speciali5ed commodity fund and a commodity fund that invests in all available commodities is a
diversified commodity fund and bears less risk than a speciali5ed commodity fund$ I'recious
-etals ,undI and 2old ,unds 9that invest in gold, gold futures or shares of gold mines: are
common e)amples of commodity funds$
Page ?@
REAL ES,A,E F2NDS:+
,unds that invest directly in real estate or lend to real estate developers or invest in
sharesGsecuriti5ed assets of housing finance companies, are kno!n as %peciali5ed Real 8state
,unds$ ;he ob>ective of these funds may be to generate regular income for investors or capital
appreciation$
E<C-AN(E ,RADED F2NDS $E,F%:+
8)change ;raded ,unds provide investors !ith combined benefits of a closed(end and an
open(end mutual fund$ 8)change ;raded ,unds follo! stock market indices and are traded on
stock e)changes like a single stock at inde) linked prices$ ;he biggest advantage offered by these
funds is that they offer diversification, fle)ibility of holding a single share 9tradable at inde) linked
prices: at the same time$ Recently introduced in #ndia, these funds are *uite popular abroad$
F2ND OF F2NDS:+
-utual funds that do not invest in financial or physical assets, but do invest in other
-utual ,und schemes offered by different A-"s, are kno!n as ,und of ,unds$ ,und of ,unds
maintain a portfolio comprising of units of other mutual fund schemes, >ust like conventional mutual
funds maintain a portfolio comprising of e*uityGdebtGmoney market instruments or non(financial
assets$ ,und of ,unds provide investors !ith an added advantage of diversifying into different
mutual fund schemes !ith even a small amount of investment, !hich further helps in
diversification of risks$ 4o!ever, the e)penses of ,und of ,unds are *uite high on account of
compounding e)penses of investments into different mutual fund schemes$
F2ND S,R2C,2RE AND CONS,I,2EN,S:+
-utual funds in #ndia have a 3(tier structure of %ponsor(;rustee(A-" $%ponsor is the
promoter of the fund$ %ponsor creates the A-" and the trustee company and appoints the +oards
of both these companies, !ith %8+# approval$ A mutual fund is constituted as a ;rust$ A trust deed
is signed by trustees and registered under the #ndian ;rust Act$ ;he mutual fund is formed as trust
in #ndia, and supervised by the +oard of ;rustees$ ;he trustees appoint the asset management
company 9A-": to actually manage the investor0s money$ ;he A-"0s capital is contributed by the
sponsor$ ;he A-" is the business face of the mutual fund$ #nvestors0 money is held in the ;rust
9the mutual fund:$ ;he A-" gets a fee for managing the funds, according to the mandate of the
investors$ ;he trustees make sure that the funds are managed according to the investors0
mandate$ %ponsor should have atleast @(year track record in the financial services business and
Page ?6
should have made profit in atleast 3 out of the @ years$ %ponsor should contribute atleast EN of
the capital of the A-"$ ;rustees are appointed by the sponsor !ith %8+# approval$ Atleast @N of
trustees should be independent$ Atleast @N of the A-"0s +oard should be of independent
members$ An A-" cannot engage in any business other than portfolio advisory and management$
An A-" of one fund cannot be ;rustee of another fund$A-" should have a net !orth of at least
Rs$ 1 crore at all times$ A-" should be registered !ith %8+# A-" signs an investment
management agreement !ith the trustees$ ;rustee "ompany and A-" are usually private limited
companies$ ;rustees oversee the A-" and seek regular reports and information from them$
;rustees are re*uired to meet atleast E times a year to revie! the A-" the investors0 funds and
the investments are held by the custodian$ %ponsor and the custodian cannot be the same entity$
R.; agents manage the sale and repurchase of units and keep the unit holder accounts$ #f the
schemes of one fund are taken over by another fund, it is called as scheme take over$ ;his
re*uires %8+# and trustee approval$ #f t!o A-"s merge, the stakes of sponsor0s changes and the
schemes of both funds come together$ 4igh court, %8+# and ;rustee approval needed$ #f one
A-" or sponsor buys out the entire stake of another sponsor in an A-", there is a takeover of
A-"$ ;he sponsor, !ho has sold out, e)its the A-"$ ;his needs high court approval as !ell as
%8+# and ;rustee approval$ #nvestors can choose to e)it at 7AV if they do not approve of the
transfer$ ;hey have a right to be informed$ 7o approval is re*uired, in the case of open(ended
funds$ ,or close(ended funds the investor approval is re*uired for all cases of merger and takes
over$
E82I,Y S-ARES
A+/D; %4AR8%6(
At the most basic level, stock 9often referred to as shares: is o!nership, or e*uity, in a company$
#nvestors buy stock in the form of shares, !hich represent a portion of a companyHs assets
9capital: and earnings 9dividends:$
As a shareholder, the e)tent of your o!nership 9your stake: in a company depends on the number
of shares you o!n in relation to the total number of shares available ,or e)ample, if you buy 1
shares of stock in a company that has issued a total of 1, shares, you o!n one per cent of
the company$
1hile one per cent seems like a small holding, very fe! private investors are able to accumulate a
shareholding of that si5e in publicly *uoted companies, many of !hich have a market value
running into billions of pounds$ Your stake may authori5e you to vote at the companyHs annual
general meeting, !here shareholders usually receive one vote per share$
#n theory, every stockholder, no matter ho! small their stake, can e)ercise some influence over
company management at the annual general meeting$ #n reality, ho!ever, most private investorsH
stakes are insignificant$ -anagement policy is far more likely to be influenced by the votes of large
institutional investors such as pension funds$
a% S,OCKS SYMBOLS:+
Page ?K
A stock symbol, or H8picH symbol, is the standard abbreviation of a stockHs name$ You can find
stock symbols !herever stock performance information is published ( for e)ample, ne!spaper
stock listings and investment !ebsites$ "ompany names also have abbreviations called ticker
symbols$ 4o!ever, itHs !orth remembering that these may vary at the different e)changes !here
the company is *uoted$
)% PERFORMANCE INDICA,ORS:+
4ere is a list of the standard performance indicators
Per0ormance In"icator De0inition
"losing price ;he last price at !hich the stock !as bought or sold
4igh and lo! ;he highest and lo!est price of the stock from the previous trading day
@? !eek range ;he highest and lo!est price over the previous @? !eeks
Volume ;he amount of shares traded during the previous trading day 4igh and lo!
7et change ;he difference bet!een the closing price on the last trading day and the
closing price on the trading day prior to the last
,-E S,OCK E<C-AN(ES:+
A marketplace in !hich to buy or sell something makes life a lot easier$
;he same applies to stocks$ A stock e)change is an organi5ation that provides a marketplace in
!hich investors and borro!ers trade stocks$ ,irstly, the stock e)change is a market for issuers
!ho !ant to raise e*uity capital by selling shares to investors in an #nitial 'ublic /ffering 9#'/:$
;he stock e)change is also a market for investors !ho can buy and sell shares at any time$
a% ,ra"ing 'are on t'e tock e6c'ange:
As an investor in the #7&#A, you canHt buy or sell shares on a stock e)change yourself$ You need
to place your order !ith a stock e)change member firm 9a stockbroker: !ho !ill then e)ecute the
order on your behalf$ ;he 7%8 A7& +%8 are the leading stock e)change in the #7&#A$ ;rading is
done through computeri5ed systems$
)% ,'e tra"ing &roce:+
#f you decide to buy or sell your shares, you need to contact a stockbroker !ho !ill buy or sell the
shares on your behalf$ After receiving your order, the stockbroker !ill input the order on the %8;%
or %8AP system to match your order !ith that of another buyer or seller$ &etails of the trade are
transmitted electronically to the stockbroker !ho is responsible for settling the trade$ You !ill then
receive confirmation of the deal$
c% ,y&e o0 'are avai#a)#e on t'e tock e6c'ange:+
Page ?A
You cannot trade all stocks on the stock e)change$ ;o be listed on a stock e)change, a stock
must meet the listing re*uirements laid do!n by that e)change in its approval process$ 8ach
e)change has its o!n listing re*uirements, and some e)changes are more particular than others$
#t is possible for a stock to be listed on more than one e)change$ ;his is kno!n as a dual listing$
INS2RANCE
'eople need insurance in the first place$ An insurance policy is primarily meant to protect the
income of the family0s bread earners$ ;he idea is if any one or both die their dependents continue
to live comfortably$ ;he circle of life begins at birth follo!er by education, marriage and eventually
after a lifetime of !ork !e look for!ard to life of retirement$ /ur finances too tend to change as !e
go through the various phases of life$ #n the first t!enty of our life, !e are financially and
emotionally dependents on our parents and there are no financial commitments to be met$ #n the
ne)t t!enty years !e gain financial independence and provide financial independence to our
families$ ;his is also the stage !hen our income may be unable to meet the gro!ing e)penses of
a young household$ #n the ne)t t!enty as !e see our investments gro! after our children gro! and
become financially independent$ #nsurance is a provision for the distribution of risks that is to say it
is a financial provision against loss from unavoidable disasters$ ;he protection !hich it affords
takes form of a guarantee to indemnify the insured if certain specified losses occur$ ;he principle
of insurance so far as the undertaking of the obligation is concerned is that for the payment of a
certain sum the guarantee !ill be given to reimburse the insured$ ;he insurer in accepting the
risks so distributes them that the total of all the amounts is paid for this insurance protection !ill be
sufficient to meet the losses that occur$ #nsurance then provide divided responsibility$ ;his
principle is introduced in most stores !here a division is made bet!een the sales clerk and the
cashiers department the arrangement dividing the risks of loss$ ;he insurance principle is similarly
applied in any other cases of divided responsibility$ As a business ho!ever insurance is usually
recogni5ed as some form of securing a promise of indemnity by the payment of premium and the
fulfillment of certain other stipulations
Page ?F
,y&e o0 in!rance
,erm in!rance &#an
;erm insurance is the cheapest form of life insurance available$ %ince a term insurance
contract only pays in the event of eventuality the life cover comes at lo! premium rates$ ;erm
insurance is a useful tool to purchase against risk of early death and protection of an asset
En"o4ment &#an
8ndo!ment plans are savings and protection plans that provide a dual benefit of protection as !ell
as savings$ 8ndo!ment plans pay a death benefit in the event of an eventuality should the
customer survive the benefit period a maturity benefit is paid to the life insured$
7'o#e o0 #i0e &#an
A !hole of life plan provides life insurance cover to an individual up to a specified age$ A !hole of
life plan is suitable for an individual !ho is looking for an e)tended life insurance cover and Gor
!ants to pay premium over as long as tenure as possible to reduce the amount of upfront
premium payment$
Penion &#an
'ension plans allo! an individual to save in a ta) differed manner$ An individual can either
contribute through regular premiums or make single premium investments$ %avings accumulate
over the deferment period$ /nce the contract reaches the vesting age, the individual has the
option of choosing an annuity plan from a life insurance company$ An annuity is paid till the life the
lifetime of the insured or a pre(determined period depending upon the annuity option chosen by
the life insured$
2nit Linke" In!rance P#an
Dnit linked insurance plan 9D3#': is life insurance solution that provides for the benefits of
risk protection and fle)ibility in investment$ ;he investment is denoted as units and is represented
by the value that it has attained called as 7et Asset Value 97AV:$ ;he policy value at any time
varies according to the value of the underlying assets at the time$
#n a D3#', the invested amount of the premiums after deducting for all the charges and premium
for risk cover under all policies in a particular fund as chosen by the policy holders are pooled
together to form a Dnit fund$ A Dnit is the component of the ,und in a Dnit 3inked #nsurance
'olicy$
;he returns in a D3#' depend upon the performance of the fund in the capital market$ D3#'
investors have the option of investing across various schemes, i$e, diversified e*uity funds,
balanced funds, debt funds etc$ #t is important to remember that in a D3#', the investment risk is
generally borne by the investor$
Page 3
#n a D3#', investors have the choice of investing in a lump sum 9single premium: or making
premium payments on an annual, half(yearly, *uarterly or monthly basis$ #nvestors also have the
fle)ibility to alter the premium amounts during the policyHs tenure$ ,or e)ample, if an individual has
surplus funds, he can enhance the contribution in D3#'$ "onversely an individual faced !ith a
li*uidity crunch has the option of paying a lo!er amount 9the difference being ad>usted in the
accumulated value of his D3#':$ D3#' investors can shift their investments across various
plansGasset classes 9diversified e*uity funds, balanced funds, debt funds: either at a nominal or no
cost$
E6&ene C'arge" in a 2LIP
'remium Allocation "harge6
A percentage of the premium is appropriated to!ards charges initial and rene!al e)penses apart
from commission e)penses before allocating the units under the policy$
-ortality "harges6
;hese are charges for the cost of insurance coverage and depend on number of factors such as
age, amount of coverage, state of health etc$
,und -anagement ,ees6
,ees levied for management of the fund and are deducted before arriving at the 7AV$
Administration "harges6
;his is the charge for administration of the plan and is levied by cancellation of units$
%urrender "harges6
&educted for premature partial or full encashment of units$
,und %!itching "harge6
Dsually a limited number of fund s!itches are allo!ed each year !ithout charge, !ith subse*uent
s!itches, sub>ect to a charge$
%ervice ;a) &eductions6 %ervice ta) is deducted from the risk portion of the premium$
Page 31
(O.ERNMEN, SEC2RI,IES
2overnment securities 92(secs: are sovereign securities !hich are issued by the Reserve
+ank of #ndia on behalf of 2overnment of #ndia, in lieu of the "entral 2overnmentHs market
borro!ing programme$
;he term 2overnment %ecurities includes6
< "entral 2overnment %ecurities$
< %tate 2overnment %ecurities
< ;reasury bills
;he "entral 2overnment borro!s funds to finance its Hfiscal deficit0$ ;he market borro!ing of the
"entral 2overnment is raised through the issue of dated securities and 36E days treasury bills
either by auction or by floatation of loans$
#n addition to the above, treasury bills of F1 days are issued for managing the temporary cash
mismatches of the 2overnment$ ;hese do not form part of the borro!ing programme of the
"entral 2overnment
,y&e o0 (overnment Sec!ritie
Page 3?
2overnment %ecurities are of the follo!ing types6(
Date" Sec!ritie: + are generally fi)ed maturity and fi)ed coupon securities usually carrying semi(
annual coupon$ ;hese are called dated securities because these are identified by their date of
maturity and the coupon, e$g$, 11$3N 2/# ?1? is a "entral 2overnment security maturing in
?1?, !hich carries a coupon of 11$3N payable half yearly$ ;he key features of these securities
are6
< ;hey are issued at face value$
< "oupon or interest rate is fi)ed at the time of issuance, and remains constant till redemption
of the security$
< ;he tenor of the security is also fi)ed$
< #nterest G"oupon payment is made on a half yearly basis on its face value$
< ;he security is redeemed at par 9face value: on its maturity date$
Qero "oupon bonds are bonds issued at discount to face value and redeemed at par$
;hese !ere issued first on Oanuary 1F, 1FFE and !ere follo!ed by t!o subse*uent issues in
1FFE(F@ and 1FF@(F6 respectively$ ;he key features of these securities are6
< ;hey are issued at a discount to the face value$
< ;he tenor of the security is fi)ed$
< ;he securities do not carry any coupon or interest rate$ ;he difference bet!een the
issue price 9discounted price: and face value is the return on this security$
< ;he security is redeemed at par 9face value: on its maturity date$
'artly 'aid %tock is stock !here payment of principal amount is made in installments over a
given time frame$ #t meets the needs of investors !ith regular flo! of funds and the need of
2overnment !hen it does not need funds immediately$ ;he first issue of such stock of eight year
maturity !as made on 7ovember 1@, 1FFE for Rs$ ? crore$ %uch stocks have been issued a
fe! more times thereafter$ ;he key features of these securities are6
< ;hey are issued at face value, but this amount is paid in installments over a specified
period$
< "oupon or interest rate is fi)ed at the time of issuance, and remains constant till redemption
of the security$
< ;he tenor of the security is also fi)ed$
< #nterest G"oupon payment is made on a half yearly basis on its face value$
< ;he security is redeemed at par 9face value: on its maturity date$
Page 33
,loating Rate +onds are bonds !ith variable interest rate !ith a fi)ed percentage over a
benchmark rate$ ;here may be a cap and a floor rate attached thereby fi)ing a ma)imum and
minimum interest rate payable on it$ ,loating rate bonds of four year maturity !ere first issued on
%eptember ?F, 1FF@, follo!ed by another issue on &ecember @, 1FF@$ Recently R+# issued a
floating rate bond, the coupon of !hich is benchmarked against average yield on 36E &ays
;reasury +ills for last si) months$ ;he coupon is reset every si) months$ ;he key features of these
securities are6
< ;hey are issued at face value$
< "oupon or interest rate is fi)ed as a percentage over a predefined benchmark rate at the
time of issuance$ ;he benchmark rate may be ;reasury bill rate, bank rate etc$
< ;hough the benchmark does not change, the rate of interest may vary according to the
change in the benchmark rate till redemption of the security$
;he tenor of the security is also fi)ed$
< #nterest G"oupon payment is made on a half yearly basis on its face value$
< ;he security is redeemed at par 9face value: on its maturity date$
+onds !ith "allG'ut /ption6 ,irst time in the history of 2overnment %ecurities market R+#
issued a bond !ith call and put option this year$ ;his bond is due for redemption in ?1? and
carries a coupon of 6$K?N$ 4o!ever the bond has call and put option after five years i$e$ in year
?K$ #n other !ords it means that holder of bond can sell back 9put option: bond to 2overnment
in ?K or 2overnment can buy back 9call option: bond from holder in ?K$ ;his bond has been
priced in line !ith @ year bonds$
"apital inde)ed +onds are bonds !here interest rate is a fi)ed percentage over the
!holesale price inde)$ ;hese provide investors !ith an effective hedge against inflation$ ;hese
bonds !ere floated on &ecember ?F, 1FFK on tap basis$ ;hey !ere of five year maturity !ith a
coupon rate of 6 per cent over the !holesale price inde)$ ;he principal redemption is linked to the
1holesale 'rice #nde)$ ;he key features of these securities are6
< ;hey are issued at face value$
< "oupon or interest rate is fi)ed as a percentage over the !holesale price inde) at the time
of issuance$ ;herefore the actual amount of interest paid varies according to the change in the
1holesale 'rice #nde)$
< ;he tenor of the security is fi)ed$
< #nterest G"oupon payment is made on a half yearly basis on its face value$
< ;he principal redemption is linked to the 1holesale 'rice #nde)$
Feat!re o0 (overnment Sec!ritie
Page 3E
Nomenc#at!re
;he coupon rate and year of maturity identifies the government security$
8)ample6 1?$?@N 2/# ?A indicates the follo!ing6
1?$?@N is the coupon rate, 2/# denotes 2overnment of #ndia, !hich is the borro!er, ?A is the
year of maturity$
E#igi)i#ity
All entities registered in #ndia like banks, financial institutions, 'rimary &ealers, firms, companies,
corporate bodies, partnership firms, institutions, mutual funds, ,oreign #nstitutional #nvestors, %tate
2overnments, 'rovident ,unds, trusts, research organi5ations, 7epal Rashtra bank and even
individuals are eligible to purchase 2overnment %ecurities$
Avai#a)i#ity
2overnment securities are highly li*uid instruments available both in the primary and secondary
market$ ;hey can be purchased from 'rimary &ealers$ '7+ 2ilts 3td$, is a leading 'rimary &ealer
in the government securities market, and is actively involved in the trading of government
securities$
Form o0 I!ance o0 (overnment Sec!ritie
< +anks, 'rimary &ealers and ,inancial #nstitutions have been allo!ed to hold these
securities !ith the 'ublic &ebt /ffice of Reserve +ank of #ndia in demateriali5ed form in accounts
kno!n as %ubsidiary 2eneral 3edger 9%23: Accounts$
< 8ntities having a 2ilt Account !ith +anks or 'rimary &ealers can hold these securities !ith
them in demateriali5ed form$
< #n addition governments securities can also be held in demateriali5ed form in demat
accounts maintained !ith the &epository 'articipants of 7%&3$
Minim!m Amo!nt
#n terms of R+# regulations, government dated securities can be purchased for a minimum amount
of Rs$ 1,G(only$ ;reasury bills can be purchased for a minimum amount of Rs ?@G( only
and in multiples thereof$ %tate 2overnment %ecurities can be purchased for a minimum amount of
Rs 1,G( only$
Re&ayment
2overnment securities are repaid at par on the e)piry of their tenor$ ;he different repayment
methods are as follo!s6
< ,or %23 account holders, the maturity proceeds !ould be credited to their current accounts
!ith the Reserve +ank of #ndia$
Page 3@
< ,or 2ilt Account 4olders, the +ankG'rimary &ealers, !ould receive the maturity proceeds
and they !ould pay the 2ilt Account 4olders$
< ,or entities having a demat account !ith 7%&3, the maturity proceeds !ould be collected
by their &'Hs and they in turn !ould pay the demat Account 4olders$
Day Co!nt
,or government dated securities and state government securities the day count is taken as 36
days for a year and 3 days for every completed month$ 4o!ever for ;reasury bills it is 36@ days
for a year$
8)ample 6 A client purchases K$EN 2/# ?1? for face value of Rs$ 1 lacs$R Rs$11$A,
i$e$ the client pays Rs$11$A for every unit of government security having a face value of Rs$
1G( ;he settlement is due on /ctober 3, ??$ 1hat is the amount to be paid by the clientS
;he security is K$EN 2/# ?1? for !hich the interest payment dates are 3rd -ay, and 3rd
7ovember every year$
OBJECTIVES OF THE PROJECT:

;o kno! the purpose of the study !as to determine the saving behavior and investment
preferences of customers$

;o understand all about different investment avenues available in #ndia$
;o find out ho! the investors get information about the various financial instrument
;o find out the saving habits of the different customers and the amount they invest in
various financial instruments$ #n !hich type of financial instrument they like to invest$
;o find out the risk profile of the investor$
Page 36
;o give a recommendation to the investors that !here they should invest$
;o evaluate the consumer attitude to!ards saving and decision making regarding
investments$
RESEARCH METHODOLOGY
-eaning
Research methodology is a careful investigation or in*uiry and
especially for search for ne! fact in any branch of kno!ledge is called a
research methodology$
;he research !ork is a combined !ord of t!o !ords first is re and
second is search means to search again and search means to search so
the total meaning means search for the ne! factor to modify and facts in
any branch of kno!ledge$ ;he main function of research is to add ne!
kno!ledge in simple !ords research can be defined as critical
investigation search for truth fact or for certainty$
Page 3K
RESEARC- DESI(N:
A research design is purely and simply the framework or plan for a study
that guides the collection and analysis of data. A good research design has the
characteristics , problem definition, specific method of data collection&
analysis , time required for research project and expenses to be incurred.
Research esign is the arrangement of condition for collection and
analy!ing data in a manner that aims to combined rele"ance to research purpose
with economy in procedure. #he present project is an exploratory type of
research. $t helps to gain a new insight in to the problem.
82ES,IONNAIRE DESI(N:
;he *uestionnaire has been designed in such a !ay so as to get the
good results from the persons$ ;he *uestionnaires are filled by the person
and on its basis a proper analysis and interpretation of the data done$ ;he
research methodology !as totally based on the method of *uestionnaires$
;he research !as done on the basis of a structured *uestionnaire$
SAMPLIN( PROCED2RE:
Sam&#ing P#an:
"onvenient %ampling 97on('robabilistic %ampling -ethod:
Page 3A
DATA COLLECTION:
&ata !as collected from the follo!ing t!o sources6
PRIMARY DA,A COLLEC,ION:
'rimary &ata !as collected through L%DRV8YM using a structured
*uestionnaire through !hich the research !as able to get an insight in to
the consumers mind and to learn about perception to!ards
L#7V8%;-87; /';#/7M$
SECONDARY DA,A COLLEC,ION:
%econdary &ata !as collected through maga5ines, >ournals,
bro!sers and earlier reports$ %econdary &ata helped in finding the
variables that has an effect on the decisions made by the people to!ards
#nvestment$
Data Analysis & Inte!etati"n:
Pre0erence o0 c!tomer to vario! invetment o&tion:
Invetment O&tion Percentage
M!t!a# F!n" =>
Bon" ?@
(ov;Sec!iritie =A
Ot'er >@
Page 3F
0
5
10
15
20
25
30
35
40
Percentage
Mutual Funds
Bonds
Gov.Secuirities
Other
Factor a00ect c!tomer a)o!t invetment:
Factor Percentage
Sec!irity >B
Ret!rn >@
Ot'er ?=
Page E
0
10
20
30
40
50
Percentage
Secuirity
eturn
Other
Age o0 c!tomer 4'o invet money:
Age Ditri)!tion Percentage
=@+CD >D
CD+D@ CC
A)ove D@ ==
Page E1
0
5
10
15
20
25
30
35
40
45
Percentage
20!35
35!50
"#ove 50
7'y c!tomer invet money:
Factor Percentage
,a6 aving =C
For 0!t!re >@
Save money =E
Ot'er ?@
Page E?
0
5
10
15
20
25
30
35
40
Percentage
$a% saving
For &uture
Save 'oney
Other
FINDIN(S
< ;he &##s have invested huge amounts into the market !hich has kept the stock market on a
positive note$ 1henever the ,##s have pulled out money from the market, the &##s have come to
the rescue by becoming net buyers$
< &uring the month of April, the &##s did no selling or buying$ ;hey !ere inactive for the first
fe! days of the month$ ;he highest investment done by the &##s for the month !as 1313 crores
!hich !as very less in comparison to the investments done by the &##s during the 6 months
analysed$
Page E3
< ;he research carried out highlights the importance of the real estate sector !hich !as the
most favoured destination by the &##s$
< ;he increasing middle class is attracting the investors as the country is still short of ??$@
million homes$ ;his is driving a number of #ndian property firms to sell their shares to investors$
< ;he retail !hich has been one of the largest employment generators is no! becoming the
most favoured destination for investors$
< ;here is an increasing a!areness about the e*uity investments !hich !ould be a great
factor in attracting &##s to invest more into the market$
< /nline trading has attracted more number of people entering the %tock market$ +ut there is
a risk of the traditional form of broking losing out$
LIMI,A,IONS
;he pro>ect is based upon various financial instruments that are available in #ndia and the
perception level of the customer about these financial instruments$ ,or !hich there !ill be the
need of information from the customers about their kno!ledge of these financial products$ ;he
various limitations of the study are6
As the pro>ect is based on secondary data, possibility of unauthori5ed information cannot be
avoided$
Reluctance of the people to provide complete information about themselves can affect the
validity of responses$
As the project is prepared for the academic purpose only, it suffers from the limitation of time, due to
which the detailed report about the topic was not possible.
Page EE
This research is dependent on the information provided by the respondents and sometimes the
respondents are very reluctant in providing right informantion and often provide it carelessly and the result
drawn out by only this information, so sometimes all efforts might not find direction and results.
This conclusion and recommendations made are based on a very less experience of researcher in this
field.
Time was the biggest constraints as the study was limited for a period of 50 days only as per the
curriculum of researcher, which means that any relevant market phenomenon before and after this duration
of time might have been skipped in the study.
CONCL2SION
usiness class investors more proportion of their income in shares ! securities as compared to service
class investors.
"ajority of investors trade according to expert the daily traders.
"ajority of investors take the decision on investment #where$what amount to invest% on their own idea
and some rely on expert&s opinion and broker&s advice.
Page E@
'n cash segment, capital gain is the prior motive of the investors followed by regular of the investors
followed by regular income and tax income and tax planning.
The satisfaction level regarding services by brokers of phone service ! professional advice is very low.
(rofessional advice available is not ade)uate regarding investment in secondary market.
"ost of the investors feel that online trading is more transparent than the older form of trading #*ing
trading%.
"ost of the people are aware of different charges charged by the brokers #+emat charges, transaction
charges, service charges, service charges etc.%.
REFERENCE

!!!$karvy$com
Page E6
!!!$icicidirect$com
!!!$mutualfundsindia$com
!!!$nseindia$com
!!!$bseindia$com
!!!$mc)$com
!!!$e*uitymaster$com
+usiness ;oday
;he 8conomic ;imes
;he -int
Karvy ,in polis
Page EK