Investment management is the professional management of

various securities (shares, bonds etc) assets (e.g. real estate), to

meet specified investment goals for the benefit of the investors.
The term asset management is often used to refer to the
investment management of collective investments, whilst the
more generic fund management may refer to all forms of
institutional investment as well as investment management for
private investors. Investment managers who specialize in
advisory or discretionary management on behalf of private
investors may often refer to their services as wealth management
or portfolio management.
The different asset classes are stocks, bonds, real-estate and
commodities. The exercise of allocating funds among these assets
(and among individual securities within each asset class) is what
investment management firms are paid for. Asset classes exhibit
different market dynamics, and different interaction effects; thus,
the allocation of monies among asset classes will have a
significant effect on the performance of the fund. Some research
suggests that allocation among asset classes has more predictive
power than the choice of individual holdings in determining
portfolio return. Arguably, the skill of a successful investment
manager resides in constructing the asset allocation, and
separately the individual holdings, so as to outperform certain
benchmarks
There are a range of different styles of fund management that the
institution can implement. For example, growth, value, market
neutral, small capitalisation, indexed, etc. Each of these
approaches has its distinctive features, adherents and, in any
particular financial environment, distinctive risk characteristics.
For example, there is evidence that growth styles (buying rapidly
growing earnings) are especially effective when the companies
able to generate such growth are scarce; conversely, when such
growth is plentiful, then there is evidence that value styles tend to
outperform the indices particularly successfully.
Objectives
The objective of the research is to understand the growth of Asset
Management Companies on the basis of their Asset-Base.
To study the concept of Mutual Fund
To study the comparison of Asset under Management (AUM) of
June 2006 with that of June 2007 for the companies having an
AUM of more than Rs, 15000 crores.
To study the growth of selected Asset Management Companies
on the basis of the increase in their Assets under Management.
Plans taken for comparison are:
Equity Plan
Fixed Term Plan
Floating Plan
Gilt Plan
Growth Plan
Income Plan
Liquid Plan
Monthly Income Plan
Tax Saving Plan
Observations & Conclusions:
In order to study the concept of mutual fund we should note that a
mutual fund is a trust that pools the money of several investors
and manages investments on their behalf. The fund collects this
money from investors through various schemes. Each scheme is
differentiated by its objectives of investments or in other words a
broadly defined purpose of how the collected money is going to
be involved. Investors invests in mutual fund due to following
advantages; they have professional management, diversification,
convenient administration, return potential, low cost liquidity,
ready made portfolio, etc. Some problems with mutual funds are
that they dont give guarantee, charges fees & commission,
hidden taxes and management risk.
The term Asset under Management (AUM) means the market
value of assets an investment company manages on behalf of
investors. AUM reflects the total market value of the portfolio of
funds, any deceleration in growth during a stock market boom
could only mean investors have been cashing out. From the
project it has been observed that out of eight Asset Management
Companies which I have selected, there has been an increase in
Assets under Management as compared to previous year. It has
been observed that all Equity Plan AUM has increased except
Kotak Mahindra Mutual Fund whose Assets have decreased by
6.81%.
The Assets under Equity plan of ICICI Prudential Mutual Fund
shows the highest increase. But if we see the volume, the
maximum growth is of UTI Mutual Fund (Rs.458402.33 lakhs)
In case of Fixed Term Plan overall the investments of all the
companies has increased. The maximum percentage growth is of
Kotak Mahindra Mutual Fund. If we see the growth in volumes
then Reliance Mutual Funds assets have increased
(Rs.1364909.74 lakhs). The lowest increase is that of SBI Mutual
Fund (Rs.61402.64 lakhs). The lowest percentage increase is that
of Birla Sunlife Mutual Fund.
In Floating Plan maximum increase in AUM is for Kotak
Mahindra Mutual Fund which is Rs.243104.89 lakhs. But
maximum percentage increase is of Reliance Mutual Fund which
is 312.02%. The maximum decrease is of ICICI Prudential
Mutual Fund, i.e., Rs.216443.53 lakhs. But maximum percentage
decrease is of UTI Mutual Fund. In Gilt Plan there has been a
decrease in AUM of most of the Asset Management Companies.
Maximum growth of AUM is for SBI Mutual Fund which is
Rs.8589.25 lakhs. The maximum decrease is of Franklin
Templeton Mutual Fund which is Rs.28465.13 lakhs. In case of
Growth Plan, AUM of most of the companies has increased.
Maximum increase is that of Reliance Mutual Fund (Rs.
188445.66 lakhs). The maximum decrease is that of Birla Sun
Life Mutual Fund (Rs. 20477.92 lakhs).
In Income Plan, there has been decrease in AUM of most of the
Asset Management Companies. But HDFC Mutual Funds assets
have increased to a very large extent which is Rs. 7156207.17
lakhs. The maximum decrease in volume is of Franklin
Templeton Mutual Fund.
In Liquid Plan, maximum increase of AUM is of Reliance Mutual
Fund which is Rs. 720577.9 lakhs. But highest percentage
increase in AUM of Birla Sun Life Mutual Fund. Maximum
decrease is of SBI Mutual Fund, i.e. Rs.213587.64 lakhs.
The main reasons for increase or decrease in Assets under
Management of the Asset Management Companies are:-
Quality of service
Brand
Net asset value
Liquidity
Tax benefits
High return
Security of investments








Overview
We are a part of the "SHRIRAM" conglomerate which has significant
presence in financial services viz., commercial vehicle financing business,
consumer finance, life and general insurance, stock broking, chit funds and
distribution of financial products such as life and general insurance
products and units of mutual funds. Apart from these financial services,
the group is also present in non-financial services business such as
property development, engineering projects and information technology.
Our Company was incorporated in the year 1979 and is registered as a
Deposit taking NBFC with Reserve Bank of India under section 45IA of
the Reserve Bank of India Act ,1934.
STFC decided to finance the much neglected Small Truck Owner. Shriram
understood the power of 'Aspiration' much before marketing based on
'Aspiration' became fashionable. Shriram started lending to the Small
Truck Owner to buy new trucks. But we found a mismatch between the
Aspiration and Ability. The Truck Operator was honest but the Equity at
his command was not sufficient to support the credit levels required to buy
a new truck.
We did not have the heart to send the Truck Operator back empty handed;
we decided to fund Pre-owned Trucks. This was the most momentous
decision that we made. What followed was Sheer magic.

From Driver to Owner, even if only of a Pre-owned Truck and from Pre-
owned Truck to the New Truck, we have been with him in his journey of
Prosperity as he has been our partner in our road to success and leadership.
For us at Shriram, credit-worthiness of the Small Truck Owner has always
been an article of faith. This faith has guided our journey from our
pioneering days in financing Small Truck Owners to the present day
leadership. Today we are not only the leader in Truck Finance; we are also
India's largest Asset Based Non-Banking Finance Company.
The inability of the economists to capture data relating to the economic
activity of the informal sector has resulted in its neglect at the policy-
making levels in the government.
The distribution of Truck Ownership being scattered among a large
number of individuals has resulted in this very important group being
missed by the institutional radar.
It is estimated that 80% of trucks in the country are in the hands of
individuals.
Vision
STFC was set up with the objective of offering the common man a
host of products and services that would be helpful to him on his
path to prosperity. Over the decades, the company has achieved
significant success in reaching this objective, and has created a
tremendous sense of loyalty amongst its customers.












Shriram Transport Finance Company Limitedread more
India's largest player in commercial vehicle finance, was established in the year
1979. The company has a network of 620 branches and 515 rural centres. We
are one of the largest asset financing NBFCs in India with a niche presence in
financing pre-owned trucks an Small Truck Owners (STOs).