Project Report

PROJECT REPORT
ON
DETERMINING THE SATISFACTION LEVEL OF EXISTING
CHANNEL PATNERS
CARRIED AT
Birla Sun Life Asset Management

Company
SUBMITTED IN PARTIAL FULFILMENT OF BACHELORS OF BUSINES MANAGEMENT

TO
THE IIS UNIVERSITY, JAIPUR
SUPERVISED BY
Mrs. Vandana Maam
SUBMITTED BY
Shradha Jaipuria
BBM SEM VI
ICG/2011/12337
ROLL NO: 111080
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Table of Contents
Acknowledgement
Executive Summary
3 - 4
Industry Overview
7 - 11
Company profile
12 - 15
Product offerings -
16 - 26
Mutual Fund Investment Strategies -
27
Objective of the study
28
Conceptual Framework about Mutual Fund -
29 - 31
Mutual Fund Classification -
32 - 34
Overview of the mutual fund industry -
10
Company profile
15
Conceptual Framework About Mutual Fund Organisation of a Mutual Fund
30
Terminologies Used In Mutual Fund

Mutual Fund Classification
33
Advantages Of Mutual Fund
Disadvantages Of Mutual Funds

Mutual Fund In India
36
-
37
38
38
Regulatory Measures By SEBI Entry Load
31
32
Mutual Fund Types -
Literature Review
27
39 - 40
41 - 43
Distribution: The primary drive of growth Branding -
44
Use of the Internet -
45
Problem identification
Management Decision Problem -
46
46
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Marketing Research Problem
46
Research Questions -
46
Scope Of The Study -
46
Research Methodology -
47
Research Design
47
Data Collection
47
Instrument Used For Data Collection -
47
Measures Of Scaling
48
Sampling Design Process
Data Analysis and interpretation

Result
48
-
59
Major Finding
Recommendations
Limitations
59
-
59
60
Learning -
61
Scope Of Further Studies

Bibliography
Questionnaire
49 - 58
61
61
63 - 66
Acknowledgement
B
ehind every achievement lies an unfathomable sea of gratitude to those who have extended
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their support and without it would never have come into existence. Words often fail to
express ones inner feelings of gratitude and indebtedness to ones benefactors, but then it is
the only readily available medium through which the undersigned can express her sincere
thanks to all those who are associated with the work in one way or the other.
A project can never exist and thrive in solitude. Project work is never the work of an
individual. It is more a combination of use, suggestions, contributions and work involving
many individuals. This project also bears the impact of many people. Thus one of the most
pleasant parts of writing this report is the opportunity to thank all those who have contributed
towards it.
At this juncture I feel deeply honoured in expressing my sincere thanks to Mr. Sachin Tskali
(Chief Manager, Birla Sun Life Mutual Fund, Rajasthan) for giving me an opportunity to
work with Birla Sun Life Mutual Fund and carry out a market research project. I would
also like to acknowledge and extend my heartfelt gratitude to my project guide and mentor,
Mr Sushant Akar (Relation manager, Birla Sun Life Mutual Fund, Jaipur) without whose
guidance and supervision this project could not have been completed. Not only he served as
my supervisor but also encouraged and challenged me throughout my training, never
accepting less than my best efforts.
My special thanks goes to each and every person at Birla Sun Life Mutual Fund, Jaipur for
helping me whenever required and showing wonderful cooperation. I would also like to thank
all respondents who took time out of their busy schedules to give me valuable input for my
study.
Lastly, I would like to thank my parents and my friends who have always supported me and
have been the pillars of strength for me. Without their support and encouragement it would
have been impossible to complete this project.
I would also like to thank MRS. VANDANA MAAM who supported me and help me to
understand the practical working of the mutual fund industry.
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Executive Summary
I Shradha Jaipuria of International College for Girls, Jaipur Rajasthan ,did my Summer
Internship Project with BSL Asset Management Company Ltd. from 7th of May 2011 to 22nd
of July 2011.
The project involves a study of mutual fund industry, evaluating and suggesting measures to
improve the services provided by the representatives of Birla Sun Life Mutual Fund to the
retail distributors and also to identify the strong as well as the weak points so that an
appropriate sales pitch could be developed. The sales pitch highlighted features like Birla Sun
Life having a huge distributor base, returns being independent of the market ups and downs,
etc. The project also involves determining the effect of SEBI circular regarding the waiver of
entry load on direct applications in mutual fund.
Calls were made to all the different channel distributors (Retail) across all tiers from
companys database and appointments were sought. Thereafter a brief questionnaire was
filled up by them about the study.
The major part of the questionnaire was focussed on determining effects of SEBI circular on
Waiver of Entry Load on Direct Application in Mutual Funds, what were the different
parameters on which the behavior of the investor is depending after this circular and
determining the satisfaction level of the channel partners.
A lot of interaction has been done with the distributors about the products and services of
Birla Sun Life. A comparative analysis A comparative analysis is also done of Birla Sun Life
Mutual Fund with other AMCs in order to find the market position of the company with
respect to services provided by it. It was found that there are many issues on which the
company needs to improve, which are elaborated in further parts of the report.
Reporting I reported to Mr.Shushant Akkar, Relationship Manager Sales who kept
guiding me during the project as and when required.
Learning during traininga) Learning about the Mutual Fund Industry and their importance in the current scenario.
b) I learned the difference of investing in mutual fund and other investment (bank/post
office) products.
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c) The scope of the project was also to find out that what factors forces the customers to
buy a particular mutual fund. I learned what things investor should keep in mind
before investing into any fund apart from that I have also seen what Indian investors
think about mutual fund and how much they are aware about mutual funds.
d) Opportunity to learn about the ups and downs in the market and its impact on the
performance of various schemes.
e) The presentations of BSL mutual fund that I gave to our alternate distribution
channels employees helped me to get exposed to various problems that the
distributors face during selling of mutual fund schemes and how to tackle with such
problems.
f) I have learned that mutual funds now present perhaps the most appropriate investment
opportunity for most investors. As financial markets become more sophisticated and
complex, investors need a financial intermediary who provides the required
knowledge and professional expertise on successful investing.
g) Learning about several business operations of the company.
h) Corporate Exposure during training made me more confident and outgoing.
Interaction with Relationship Managers and branch heads at various banks boosted my
confidence and infused enthusiasm in me.
Industry Overview
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Overview of the mutual fund industry

EMERGENCE OF MUTUAL FUNDS
Mutual funds now represent perhaps the most appropriate investment opportunity for most
investors. As financial markets become more sophisticated and complex, investors need a
financial intermediary who provides the required knowledge and professional expertise on
successful investing. It is no wonder then that in the birthplace of mutual funds the U.S.A
the fund industry has already overtaken the banking industry, more funds being under mutual
fund management than deposited with banks.
The Indian mutual fund industry has already started opening up many of the exciting
investment opportunities to Indian investors. We have started witnessing the phenomenon of
more savings now being entrusted to the funds than to the banks. Despite the expected
continuing growth in the industry, mutual funds are still a new financial intermediary in India.
Hence, it is important that the investors, the mutual fund agents/distributors, the investment
advisors and even the fund employees acquire better knowledge of what mutual funds are,
what they can do for investors and what they cannot, and how they function differently from
other intermediaries such as the banks. The Association of Mutual Funds in India has
commissioned this Workbook as the basic compilation of the minimum knowledge required
by both the fund distributors and the employees. The Workbook will also serve as a guide to
the AMFI Mutual Fund Testing Programme for distributors and employees.
PLACE OF MUTUAL FUNDS IN FINANCIAL MARKETS
Indian households started allocating more of their savings to the capital markets in 1980s,
with investments flowing into equity and debt instruments, besides the conventional mode of
bank deposits.
Until 1992, primary market investors were effectively assured good returns as the issue price
of new equity issues was controlled and low. After introduction of free pricing of shares, new
issue prices were higher and with greater volatility in the stock markets, many investors who
bought highly priced shares lost money, and withdrew from the markets altogether. Even
those investors who continued as direct investors in the stock markets realized that the key to
successful investing in the capital markets lay in building a diversified portfolio, which in
turn required substantial capital. Besides, selecting securities with growth and income
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potential from the capital market involved careful research and monitoring of the market,
which was not possible for all investors. Under similar circumstances in other countries,
mutual funds had emerged as professional intermediaries. Besides providing the expertise in
stock market investing, these funds allow investing in small amounts and yet holding a
diversified portfolio to limit risk, while providing the potential for income and growth that is
associated with the debt and equity instruments. In India, Unit Trust of India occupied this
place as the only capital markets intermediary from 1964 until late 1987, when the
Government started allowing other sponsors also to set up mutual funds. With some ups and
downs, this new class of intermediary institutions has emerged, in India as elsewhere, as a
good alternative to direct investing in capital markets.
Assets under management
As on 29th Feb, 2008, there were 5343 mutual fund schemes in the market. As of the end of
March 2007, India's mutual funds had assets under management of 3.3 trillion rupees (Rs
3.3 trillion). Indias market for mutual funds has generated substantial growth in assets
under management over the past 10 years, but this rate of growth has been particularly
impressive over the past two years, in FY2005 and FY2006.
A detailed breakdown of the fund inflows over the past two fiscal years shows
particularly strong inflows into equity funds, an indication that investors in India see strong
growth potential for India's domestic firms .Most of the money flowing into equity
funds is from individual investors, and appears to include both funds owned by the
wealthy, which tend to invest via the growing private banking channel, and funds from
regular retail investors, who are growing in number in step with growth in the middle class.
Ownership of mutual fund shares
One notable characteristic of India's mutual fund market is the high percentage of shares
owned by corporations. According to the Association of Mutual Funds in India (AMFI),
individual investors held slightly under 50% of mutual fund assets, and corporations
held slightly over 50%, as of the end of March 2007 .This high percentage of
corporate ownership can be traced back to tax reforms instituted in 1999 that lowered the tax
rate on dividend and interest income from mutual funds, and made that rate lower than the
corporate tax rate levied on income from securities held directly by corporations.
Although there is no official data regarding the type investor in each asset class, the typical
pattern seems to be that individual investors primarily invest in equity funds, while
corporate investors favour bond funds, particularly short-term money market products that
provide a way for corporations to invest surplus cash.
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Source: Nomura Institute of Capital Markets Research, based on materials from the
Association of Mutual Funds in India
Source: Nomura Institute of Capital Markets Research, based on materials from Cerulli
Associates
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Figure 4: Ownership of mutual funds (as of end-March 2007)

Individuals
Non-resident Indians
Foreign institutional investors
Corporations, domestic institutional investors
Total
Ownership share (%) Asset amount (%)

96.09
42.83
1.66
4.95
1.21
1.21
2.24
51.01
100
100
Source: Association of Mutual Funds in India
The history of mutual funds

First Phase 1964-87
An Act of Parliament established Unit Trust of India (UTI) on 1963. It was set up by the
Reserve Bank of India and functioned under the Regulatory and administrative control of the
Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in
place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988
UTI had Rs.6, 700 crores of assets under management.
Second Phase 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987
followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund
(Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund
in December 1990. At the end of 1993, the mutual fund industry had assets under
management of Rs.47, 004 crores.
Third Phase 1993-2003 (Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year
in which the first Mutual Fund Regulations came into being, under which all mutual funds,
except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged
with Franklin Templeton) was the first private sector mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI
(Mutual Fund) Regulations 1996. The number of mutual fund houses went on increasing,
with many foreign mutual funds setting up funds in India and also the industry has witnessed
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several mergers and acquisitions, as at the end of January 2003, there were 33 mutual funds
with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44, 541 crores of
assets under management was way ahead of other mutual funds.
Fourth Phase since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of
India with assets under management of Rs.29, 835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other schemes.
The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the purview of the
Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation
of the erstwhile UTI which had in March 2000 more than Rs.76, 000 crores of assets under
management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of consolidation and growth. As at the
end of September 2004, there were 29 funds, which manage assets of Rs.153108 crores under
421 schemes.
The graph below illustrates the growth of assets over the years.
Source: Association of Mutual Funds India
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Company profile
Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment managers of
Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla Group and the Sun
Life Financial Services Inc. of Canada. The joint venture brings together the Aditya Birla
Group's experience in the Indian market and Sun Life's global experience.
Since its inception in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading
Mutual Funds managing assets of a large investor base. The fund offers a range of investment
options, which include diversified and sector specific equity schemes, fund of fund schemes,
hybrid and monthly income funds, a wide range of debt and treasury products and offshore
funds.
BSLAMC follows a long-term, fundamental research based approach to investment. The
approach is to identify companies, which have excellent growth prospects and strong
fundamentals. The fundamentals include the quality of the companys management,
sustainability of its business model and its competitive position, amongst other factors. Birla
Sun Life Asset Management Company has one of the largest team of research analysts in the
industry, dedicated to tracking down the best companies to invest in.
Birla Sun Life AMC strives to provide transparent, ethical and research-based investments
and wealth management services.
Vision
To be the most trusted name in investment and wealth management, to be the preferred
employer in the industry and to be a catalyst for growth and excellence of the asset
management business in India.
Mission
To consistently pursue investor's wealth optimization by achieving superior and consistent
investment results Creating a conductive environment to hone and retain talent. Providing
customer delight. Institutionalizing system-approach in all aspects of functioning. Upholding
highest standards of ethical values at all times.
Client focus
We listen carefully to our clients.
We put our clients first and at the heart of all we do.
We listen and deeply understand our clients businesses, risk and issues.
We help our clients better meet their investment goals.
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We anticipate trends and help clients plot the future course.

Consistently exceed our clients expectations. Make decisions close to our clients
SHAREHOLDERS IN BIRLA SUN LIFE ASSET MANAGEMENT COMPANY
Aditya Birla Group
Sun Life Financial Inc.
The Aditya Birla Group is India's first truly multinational corporation. Global in vision,
rooted in Indian values, the Group is driven by a performance ethic pegged on value creation
for its multiple stakeholders.
The Aditya Birla Groups products and services offer distinctive customer solutions
worldwide. The Group has operations in 20 countries - India, Thailand, Laos, Indonesia,
Philippines, Egypt, China, Canada, Australia, USA, UK, Germany, Hungary, Brazil, Italy,
France, Luxembourg, Switzerland, Malaysia and Korea.
A US $28 billion corporation with a market cap. of US $31.5 billion and in the League of
Fortune 500, the Aditya Birla Group is anchored by an extraordinary force of 100,000
employees, belonging to 25 different nationalities. Over 50 per cent of its revenues flow from
its operations across the world.
Its 66 state-of-the-art manufacturing units and sectoral services span India, Thailand,
Indonesia, Malaysia, Philippines, Egypt, Canada, Australia and China.
The Aditya Birla Group is a dominant player in all of the sectors in which it operates. These
sectors include viscose staple fiber, non-ferrous metals, cement and viscose filament yarn,
branded apparel, carbon black, chemicals, fertilizers, sponge iron, insulators and financial
services.
The Group has also made successful forays into the IT and BPO sectors.
In India, the Group has been adjudged The Best Employer in India and among the top 20 in
Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007.
Sun Life Financial Inc. is a leading financial services organization headquartered in Toronto,
Canada, operating in key markets around the world.
The Sun Life Financial group of companies and their joint ventures offer individuals and
corporate customers a diverse range of financial products and services that fall into two
principal business areas: wealth management and protection. Throughout its international
operations, Sun Life Financial has an employee base of approximately 13,800 people plus an
extensive global distribution network of career sales forces, independent agents, investment
dealers and financial planners.
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Tracing its roots back to 1865, Sun Life Financial Inc. and its partners today have operations
in key markets worldwide, including Canada, the United States, the United Kingdom, Hong
Kong, the Philippines, Indonesia, India and China. As on 30th June 2007, Sun Life Financial
Inc. manages assets worth CDN $435 billion.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE)
stock exchanges under ticker symbol "SLF".
Why Birla Sun Life Mutual Funds?

HERITAGE
Birla Sun Life Mutual Fund is a joint venture between the Aditya Birla Group and Sun Life
Financial Inc. of Canada. Birla Sun Life Mutual Fund offers a wide range of top quality
financial services solutions for resident and non-resident Indians.
The Aditya Birla Group is one of India's largest business houses. Global in vision, rooted in
Indian values, the Group is driven by a performance ethic pegged on value creation for its
multiple stakeholders.
The Group's operations span 66 state of the art, straddling India, Thailand, Malaysia,
Indonesia, Egypt, Philippines, Canada, Australia and China.
A US $28 billion corporation with a market cap. of US $31.5 billion and in the League of
Fortune 500, the Aditya Birla Group is anchored by an extraordinary force of 100,000
employees, belonging to 25 different nationalities. Over 50 per cent of its revenues flow from
its operations across the world.
The Aditya Birla Group is a dominant player in all its areas of operations viz; Aluminum,
Copper, Cement, Viscose Staple Fibre, Carbon Black, Viscose Filament Yarn, Fertilizers,
Insulators, Sponge Iron, Chemicals, Branded Apparels, Insurance, Mutual Funds, S strategic
joint ventures with global majors such as Sun Life (Canada), AT&T (USA), the Tata Group
and NGK Insulators (Japan), and has ventured into the BPO sector with the acquisition of
TransWorks, a leading ITES/BPO company.
Sun Life Financial is a leading international financial services organization providing a
diverse range of wealth accumulation and protection products and services to individuals and
corporate customers. Chartered in 1865, Sun Life Financial and its partners today have
operations in key markets worldwide, including Canada, the United States, the United
Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.
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As of 30 June 2007, the Sun Life Financial group of companies had total assets under
management of CDN $ 435 billion.
TRACK RECORD
With a proven track record of 12 years, Birla Sun Life Mutual Fund has been a catalyst
towards the growth of the private sector asset management business.
INNOVATIONS
Birla Sun Life Mutual Fund was the first to launch
Birla Cash Plus, a liquid fund.
Birla Dividend Yield Plus which is a dividend yield fund.
Birla Bond Index Fund (a debt index fund) which replicates the Crisil Composite Bond Fund
Index, has been assigned AAAF rating by Crisil.
INVESTMENT PHILOSOPHY
Birla Sun Life Mutual Fund follows a long-term, fundamental research based approach to
investment. The approach is to identify companies, which have excellent credit-worthiness
and strong fundamentals. The fundamentals include the quality of the company's
management, sustainability of its business model and its competitive position, amongst other
factors. Birla Sun Life Asset Management Company (BSLAMC) has one of the largest team
of research analysts in the industry, dedicated to tracking down the best companies to invest
in BSLAMC will always strive to provide transparent, ethical and research-based investments
and wealth management services.
GEOGRAPHICAL REACH
Today, BSLAMC is present in 111 locations, including 74 branches.
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PRODUCT OFFERINGS
Birla Sun Life Mutual Fund offers a range of investment options, which include diversified
and sector specific equity schemes, fund-of-fund schemes, hybrid and monthly income funds,
a wide range of debt and treasury products and offshore funds. BSLAMC also provides
Private Wealth Management services.
DIFFERENT FUNDS MANAGED BY BIRLA SUN LIFE ASSET MANAGEMENT
COMPANY:
Birla Sun Life Government Securities Fund: An Open-ended Gilt scheme with the
objective to provide investors current income consistent with a portfolio invested 100% in
securities issued by the Government of India or the State Governments, and the secondary
objective is capital appreciation.
Birla Floating Rate Fund: An Open-ended income scheme with the objective to generate
regular income through investment in a portfolio comprising substantially of floating rate
debt / money market instruments.
Birla Sun Life Cash Manager: An Open-ended liquid scheme with the objective to provide
current income which is consistent with a portfolio that offers investors superior liquidity by
investing 100% in a diversified portfolio of debt (Fixed Income) and money market
securities.
Birla Sun Life Income Fund: An Open-ended income scheme with the objective to generate
consistent income through superior yields on its investments at moderate levels of risk
through a diversified investment approach.
Birla Sun Life Short Term Fund: An Open-ended short term income scheme with the
objective to generate income and capital appreciation by investing 100% of the corpus in a
diversified portfolio of debt and money market securities with relatively low levels of interest
rate risk.
Birla Sun Life Liquid Plus: An Open-ended short term income scheme with the objective to
generate regular returns through investments in debt and money market securities.
Birla MIP II - Wealth 25 Plan: An Open-ended income scheme with the objective to
generate regular income so as to make monthly payment or distribution to unit holders with
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the secondary objective being growth of capital. Monthly Income is not assured and is subject
to availability of distributable surplus.
Birla Sun Life Monthly Income: An open-end income scheme with the primary objective to
generate regular income so as to make monthly and quarterly distributions to unit holders and
the secondary objective as growth of capital. Monthly income is not assured and is subject to
availability of distributable surplus.
Birla Dynamic Bond Fund: An Open-ended income scheme with the objective to generate
optimal returns with high liquidity through active management of the portfolio by investing
in high quality debt and money market instruments.
Birla Sun Life Government Securities Fund: An Open-ended Gilt scheme with the
objective to provide investors current income consistent with a portfolio invested 100% in
securities issued by the Government of India or the State Governments, and the secondary
objective is capital appreciation.
Birla Asset Allocation Fund: An Open-ended Fund of Funds scheme with the objective to
provide income and capital appreciation along with diversification by investing in a basket of
debt and equity Mutual Fund schemes in line with the risk profile of the investors.
Birla Sun Life International Equity Fund - Plan B: An open-ended diversified equity
scheme with an objective to generate long-term growth of capital, by investing predominantly
in a diversified portfolio of equity and equity related securities in the domestic and
international markets.
Birla Income Plus: An Open-ended income scheme with the objective to generate consistent
income through superior yields on its investments at moderate levels of risk through a
diversified investment approach
Birla India Opportunities Fund: An Open-ended growth scheme with the objective to
achieve superior long-term growth of capital by investing in shares of companies that do one
or more of the following: Leverage India's intellectual capital for providing services, research
and creative inputs; Seek to use current and impending changes in patent laws / import
tariffs / quotas to supply goods and services; Leverage India's lower labour costs for
providing services and manufactured goods; Leverage India's large population of English
speaking people for providing services.
Birla Gilt Plus: An Open-ended government securities scheme with the objective to
generate income and capital appreciation through investments exclusively in Government
Securities.
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Birla Cash Plus: An Open-ended liquid scheme with the objective to provide reasonable
returns at a high level of safety and liquidity through judicious investments in high quality
debt and money market instruments.
Birla MNC Fund: An Open-ended growth scheme with the objective to achieve long-term
growth of capital at relatively moderate levels of risk by making investments in securities of
multi-national companies through a research based investment approach
Birla MIP: An Open-ended income scheme with the objective to generate regular income so
as to make monthly distribution to unit holders with the secondary objective being growth of
capital. Monthly Income is not assured and is subject to availability of distributable surplus.
Birla Sun Life Buy India Fund: A multi-sector open-end growth scheme with the objective
of long term growth of capital, through a portfolio with a target allocation of 100% equity,
focusing on investing in businesses that are driven by India's large population and inherent
consumption patterns. The focus of the scheme will be in the consumer and healthcare
sectors.
Birla Sun Life New Millennium Fund: A multi-sector open-end growth scheme with the
objective of long term growth of capital, through a portfolio with a target allocation of 100%
equity, focusing on investing in technology and technology dependent companies, hardware,
peripherals and components, software, telecom, media, internet and e-commerce and other
technology enabled companies.
Birla Top 100 Fund: An open-ended growth scheme with the objective to provide medium
to long term capital appreciation, by investing predominantly in a diversified portfolio of
equity and equity related securities of top 100 companies as measured by market
capitalization.
Birla Index Fund: An Open-ended index-linked growth scheme with the objective of
generates returns commensurate with the performance of Nifty subject to tracking errors.
Birla Equity Plan: An Open-ended Equity Linked Savings Scheme (ELSS) with the
objective to achieve long-term growth of capital along with income tax relief for investment.
Birla Advantage Fund: An Open-ended growth scheme with the objective to achieve longterm growth of capital at relatively moderate levels of risk through a diversified research
based investment approach.
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Birla India GenNext Fund: An Open-ended growth scheme with the objective to target
growth of capital by investing in equity/equity related instruments of companies that are
expected to benefit from the rising consumption patterns in India, which in turn is getting
fuelled by high disposable incomes of the young generation (Generation Next). The scheme
will invest in companies that have the following characteristics:
1. Companies that seek growth in revenues arising out of demand from the younger
generation (GenNext) for their products or services.
2. They should be engaged in manufacturing of products or rendering of services that go
directly to the consumer.
3. The products and services should have distinct brand identity, thereby enabling choice.
Birla Sun Life International Equity Fund - Plan A: An open-ended diversified equity
scheme with an objective to generate long-term growth of capital, by investing predominantly
in a diversified portfolio of equity and equity related securities in the international markets.
Birla Sun Life Basic Industries Fund: A multi-sector open-end growth scheme with the
objective of long term growth capital, through a portfolio with a target allocation of 100%
equity, focusing on investing in companies sensitive to economic cycles and commodity
pricing cycles. The investments will be in companies which are often referred to as cyclical
companies.
Birla Sun Life Equity Fund: An open-ended growth scheme with the objective of long
term growth of capital, through a portfolio with a target allocation of 90% equity and 10%
debt and money market securities.
Birla Midcap Fund: An Open-ended growth scheme with the objective to achieve longterm growth of capital at controlled level of risk by primarily investing in midcap stocks.
Birla Sun Life Frontline Equity Fund: An open-end growth scheme with the objective of
long term growth of capital, through a portfolio with a target allocation of 100% equity by
aiming at being as diversified across various industries and or sectors as its chosen
benchmark index, BSE 200.
Birla Sun Life Tax Relief '96: An open-end equity linked savings scheme (ELSS) with the
objective of long term growth of capital through a portfolio with a target allocation of 80%
equity, 20% debt and money market securities.
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Birla Infrastructure Fund: An open-end growth scheme with the objective to providing for
medium to long-term capital appreciation by investing predominantly in a diversified
portfolio of equity and equity related securities of companies that are participating in the
growth and development of Infrastructure in India.
Birla Sun Life Special Situations Fund: An Open-ended diversified equity scheme with an
objective of the scheme is to generate long term growth of capital by investing in a portfolio
of equity and equity related securities. The Scheme would follow an investment strategy that
would take advantage of Special Situations & Contrarian investment style.
Birla Sun Life '95 Fund: An open-end balanced scheme with the objective of long term
growth of capital and current income, through a portfolio of equity and fixed income
securities.
Birla Balance: An Open-ended balanced scheme with an objective to balance income
requirements with growth of capital through a balance mix of investments in equity and debt
at relatively moderate levels of risks through a diversified research based investment
approach.
India Advantage Fund Ltd: An Open-ended growth scheme with the objective of long-term
appreciation through investment primarily in equity related securities of companies in India
that are run by efficient management, have a sustainable and robust business model and are
available at reasonable valuations.
AWARDS WON BY BSLAMC
CNBC TV18 - CRISIL Mutual Fund of the Year Awards for 2007
Mutual Fund of the Year
Birla Sun Life Mutual Fund
Total Fund Houses = 26
1 yr performance ended 31, Dec 2007
Emerging Equity Fund of the Year
Birla Infrastructure Fund Growth
1 yr performance ended 31 Dec, 07
Total Schemes in Category = 14
20 | P a g e
Birla Sun Life Frontline Equity Fund

Category: Large Cap oriented Equity Fund
Birla Sun Life Income Fund
Category: Income Funds
Birla Sun Life Monthly Income
Category: Monthly Income Plans Conservative
Birla Sun Life Short Term Fund
Category: Income Short Term Funds
Lipper Fund Awards 2008
Birla Sun Life Income Fund-Growth
Best Fund - Bond INR General
3 yrs & 10 yrs performance ended 31 Dec, 07
Total Schemes in Category = 100 and 10 respectively
Birla Gilt Plus-Regular Plan-Growth
Best Fund - Bond INR Government
5 yrs performance ended 31 Dec, 07
Birla Sun Life '95 Fund-Growth
Best Fund - Mixed Asset INR Aggressive
10 yrs performance ended 31 Dec, 07
21 | P a g e
ICRA Mutual Fund Awards 2008

Birla Income Plus
7-Star Gold Award Debt: Long Term
1 yr ended 31 Dec, 07
Birla Sun Life Short Term Fund
7-Star Gold Award Liquid Plus
1 yr ended 31 Dec, 07
Schemes of BSL mutual fund

1. Birla Sun Life Cash Manager- A fund that aims to provide the convenience of a
saving account with the opportunity to earn higher post tax return.
2. Birla Sun Life Saving Fund A fund that provide the convenience of a saving
account with the opportunity to earn higher post tax return.
3. Birla Sun Life Dynamic Bond Fund A dynamic income solution that aims to
generate return with active management in bonds of quality companies to capture positive
price movements and minimize the impact of adverse price movement.
4. Birla Sun Life Frontline Equity Fund A diversified equity fund that invests
across sectors in line with BSE200 index , with a bias for large caps but not exclusively
focused on them.
5. Birla Sun Life MNC Fund - The fund that invest in securities of multinational
companies in order to achieve long - term growth of capital with relatively moderate
levels of risk.
6. Birla Sun Life Small & Mid Cap Fund - An Equity fund that aims to generate
growth and capital appreciation by investing predominantly in equity related securities of
companies considered to be small and mid cap.
22 | P a g e
Mutual Fund Investment Strategies

Systematic Investment Plan (SIP):
SIPs entail an investor to invest a fixed sum of money at regular intervals in MF scheme the
investor has chosen. This may help you gain from any appreciation in the event of upside or
alternatively, average your cost during downside. Seeing the present volatility in the market
SIP is the best option available to the investor due to regular entry into the market which
causes rupee cost averaging and hence covers the volatility.
Systematic Withdrawal Plan (SWPs):

These plans are best suited for people nearing retirement. In these plans investor invest in a
mutual fund scheme and is allowed to withdraw a fixed sum of money at regular intervals to
take care of expenses.
Systematic Transfer Plan (STP):

They allow the investor to transfer on a periodic basis a specified amount from one scheme to
another with in the same fund family meaning two schemes belonging to the same money. A
transfer will be treated as redemption of units from the scheme from which the transfer is
made.
INTRODUCTION
Objective of the study
As the title of the project suggests, the objective of the project is to find out the satisfaction
level of Distributors with respect to the services & overall product quality provided by the
AMC.
The following are the sub objectives of the project:
Understanding the attitude and behaviour of the distributors towards Birla Sun
Life Mutual Fund.
23 | P a g e
Find out their preference parameters for selling a particular fund.

Understanding the competition for the service provided by different mutual fund
companies.
Finding out ways and means to improve on the services by Birla Sun Life Mutual
Fund.
Rationale of the study

Mutual fund industry has grown by leaps and bounds, particularly during the last two decades
of the 20th century. Moreover the entry of private sector mutual funds (since 1993) has
injected a sense of competition and the industry has been witnessing a structural change from
a public sector monopoly to monopolistic industry. A proper evaluation measure will remove
confusion and help investors to decide about levels of investments in various mutual fund
schemes, so as to maximize their returns. Further, the growing competition in the market
forces the fund managers to work hard to satisfy investors and the management.
Furthermore, the study includes a survey of dealers to find out the satisfaction level among
the various Individual financial advisors of Birla Sun Life Mutual Fund, Jaipur. And to
estimate the effect of SEBI circular issued on 31st December, 2007 regarding waiver of entry
load on direct application in mutual funds, which was implemented from 4th January 2008.
Since the issue of this circular there has been a buzz in the mutual fund industry and the
distributors of mutual fund, that this will affect their business heavily.
Conceptual Framework about Mutual Fund

A mutual fund is a common pool of money into which investors place their contributions that
are to be invested in accordance with a stated objective. The ownership of the fund is thus
joint or mutual; the fund belongs to all investors. A single investors ownership of the fund
is in the same proportion as the amount of the contribution made by him or her bears to the
total amount of the fund.
A mutual fund uses the money collected from investors to buy those assets which are
specifically permitted by its stated investment objective. Thus, an equity fund would buy
mainly equity assets ordinary shares, preference shares, warrants etc. A bond fund would
mainly buy debt instruments such as debentures, bonds, or government securities. It is these
assets which are owned by the investors in the same proportion as their contribution bears to
the total contributions of all investors put together.
When an investor subscribes to a mutual fund, he or she buys a part of the assets or the pool
of funds that are outstanding at that time. It is no different from buying shares of a joint
24 | P a g e
stock company, in which case the purchase makes the investor a part owner of the company
and its assets. In fact, in the U.S.A., a mutual fund is constituted as an investment company
and an investor buts into the fund , meaning he buys the shares of the fund.
In India, a mutual fund is constituted as a Trust and the investor subscribes to the units
issued by the fund, which is where the term Unit Trust comes from. However, whether the
investor gets fund shares or units is only a matter of legal distinction. In any case, a mutual
fund shareholder or unit-holder is a part owner of the funds assets. The term unit-holder
includes the mutual fund account-holder or closed-end fund shareholder. A unit-holder in
Unit Trust of India US-64 Scheme is the same as a UTI Master share-holder or an investor in
an Alliance or DSP Merrill Lynch or Prudential-ICICI or Tata or Templeton or SBI or any
other fund managers open-end or closed-end scheme.
Since each owner is a part owner of a mutual fund, it is necessary to establish the value of his
part. In other words, each share or unit that an investor holds needs to be assigned a value.
Since the units held by an investor evidence the ownership of the funds assets, the value of
the total assets of the fund when divided by the total number of units issued by the mutual
fund gives us the value of one unit. This is generally called the Net Asset Value (NAV) of one
unit or one share. The value of an investors part ownership is thus determined by the NAV of
the number of units held.
The flow chart below broadly describes the working of a mutual fund:
Organization of a Mutual Fund
25 | P a g e
There are many entities involved and the diagram below illustrates the organisational
set up of a mutual fund:
The SPONSOR is the company which sets up the mutual fund. Sponsor means any body
corporate who acting alone or in combination with another body corporate established a
mutual fund after initiating and completing the formalities.
TRUSTEES: The management of the mutual fund is subject to the control of the board of
trustees of the fund. They are the eminent persons who have wide experience in investment
matters, finance, administration, etc. They guide the operations of the fund. The trustees carry
the crucial responsibility to see that AMC always act in the best interest of the investors.
ASSET MANAGEMENT COMPANY (AMC): The mutual fund will be operated by
separately established asset management companies (AMC).It manages the funds of the
various schemes. It plays a key role in running the mutual fund and it operates under the
supervision and guidance of the Trustees. It is entrusted with the specific task of mobilizing
funds under the scheme.
CUSTODIAN: A Custodian is a person carrying on the activities of the safekeeping of the
securities or participating in any clearing system on behalf of the clients to effect deliveries of
the securities.
REGISTRAR AND TRANSFER AGENTS : The AMC hires this agency for taking care of
purchase and sale of the units of the fund ,issue certificates /account statements to
investors ,make dividend payments etc. Eg. KARVY consultants, Computer Age
Management Systems.
DISTRIBUTORS: They are appointed by AMC and may act on behalf of different funds.
INDEPENDENT individuals are appointed as agents.
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Terminologies Used In Mutual Fund

Before we move on, lets understand some basic terminologies used in mutual funds :
Net Asset Value ( NAV ) : It is the market value of the assets of the scheme minus its
liabilities divided by the units outstanding. Simply put, if the fund is dissolved or liquidated,
by selling off all the assets in the fund, this is the amount that the unit-holders would
collectively own. The NAV is used to calculate the value of your investments and to
determine the price of per unit for buying or selling.
NAV =
Assets - Liabilities
No. of units outstanding
Portfolio: Combined holdings of many kinds financial securities like shares, debentures and
bonds. The objective is risk diversification and maximization of gain of group of assets.
Sale Price: It is the price that the investor has to pay while investing in a scheme. It is also
called as Offer Price. It may include a sales load.
Repurchase Price: Is the price at which a close-ended scheme repurchases its units and it
may include a back-end load. This is also called Bid Price.
Corpus: The total amount of money that a fund has at any point of time.
Unit: A unit represents an investors share in the assets of the scheme she/he has invested.
27 | P a g e
Load: A load is a one-time sales charge paid by an investor while buying or selling units of a
scheme. An entry load is charged at the time of purchase of units and an exit load is charged
at the time of purchase of redemption.
Expense Ratio: Expense ratio is defined as the ratio of total expenses to the net assets of the
fund. It is the annual percentage of the funds assets that is paid out in expenses. The expense
allowed for a fund is a percentage of the weekly average net assets outstanding.
Mutual Fund Classification

There are many types of mutual funds available to the investor. However, these different
types of funds can be grouped into certain classifications for better understanding. From the
investors perspective, we would follow three basic classifications:
Firstly, funds are usually classified in terms of their constitution as closed-end or

open-end. The distinction depends upon whether they give the investors the option to
redeem and buy units at any time from the fund itself (open-end) or whether the
investors have to await a given maturity before they can redeem their units to the fund
(closed-end). Interval funds combine the features of open-ended and close-ended
schemes. They may be traded on the stock exchange or may be open for sale or
redemption during pre-determined intervals at NAV related prices.
Funds can also be grouped in terms of whether they collect from investors any
charges at the time of entry or exit or both, thus reducing the investible amount or the
redemption proceeds. Funds that make these charges are classified as load funds, and
funds that do not make any of these charges are termed no-load funds.
Finally, funds can also be classified as being tax-exempt or non-tax-exempt,

depending on whether they invest in securities that give tax-exempt returns or not.
Currently in India, this classification may be somewhat less important, given the
recent tax exemptions given to investors receiving any dividends from all mutual
funds.
Mutual Fund Types
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All mutual funds would be either closed-end or open-end, and either load or no-load. Once
we have reviewed the fund classes, we are ready to discuss more specific fund types. Funds
are generally distinguished from each other by their investment objectives and types of
securities they invest in.
Money Market Funds : They invest in securities of a short-term nature, which generally
means securities of less than one-year maturity. The typical, short-term, interest-bearing
instruments these funds invest in include Treasury Bills issued by Governments, Certificates
of Deposit issued by banks and Commercial Paper issued by companies.
Gilt Funds: Gilts are government securities with medium to long-term maturities, typically
of over one year. Since the issuer is the Government/s of India/States, these funds have little
risk of default and hence offer better protection of principal.
Debt or Income Funds: Debt Funds invest in debt instruments issued not only by
governments, but also by private companies, banks and financial institutions and other
entities such as infrastructure companies/utilities. By investing in debt, these funds target low
risk and stable income for the investor as their key objectives.
Equity Funds: Equity Funds invest a major portion of their corpus in equity shares issued by
companies, acquired directly in initial public offerings or through the secondary market. They
are generally considered at the higher end of the risk spectrum among all funds available in
the market.
Hybrid Funds: There are funds that seek to hold a relatively balanced holding of debt and
equity securities in their portfolios. Such funds are termed Hybrid Funds as they have a
dual equity/bond focus.
Commodity Funds: Commodity Funds specialize in investing in different commodities
directly or through shares of commodity companies or through commodity future contracts.
Growth Funds: The aim of growth funds is to provide capital appreciation over the medium
to long- term. Such schemes normally invest a majority of their corpus in equities. They are
ideal for: investors in their prime earning years and also for investors seeking growth over the
long term.
Balanced Funds: The aim of balanced funds is to provide both growth and regular income.
Such schemes periodically distribute a part of their earning and invest both in equities and
fixed income securities in the proportion indicated in their offer documents. In a rising stock
market, the NAV of these schemes may not normally keep pace, or fall equally when the
29 | P a g e
market falls. They are ideal for investors looking for a combination of income and moderate
growth.
Index Funds: An Index Fund is a mutual fund that tries to mirror a market index, like Nifty
or BSE Sensex, as closely as possible by investing in all the stocks that comprise that index in
proportions equal to the weight age of those stocks in the index. These are passively managed
funds wherein the fund manager invests the funds in the stocks comprising the index in
similar weight. Index funds, while reducing the risk associated with the market, offer many
benefits to the investors. These are considered appropriate for: Conservative long-term
investors looking at moderate risk, moderate return arising out of well diversified portfolio.
Sectoral Funds: Sectoral Funds are those, which invest exclusively in a specified industry or
a group of industries or various segments such as 'A' Group shares or initial public offerings.
30 | P a g e
Advantages of Mutual Fund

If mutual funds are emerging as the favourite investment vehicle, it is because of the many
advantages they have over other forms and avenues of investing. The following are the major
advantages offered by mutual funds to all investors:
Professional Management: Mutual Fund is managed by skilled investment professionals
known as the Fund Managers. They are backed by a well equipped investment research
team and have a thorough knowledge of the capital market. The manager uses the money that
is invested by the investors to buy and sell stocks. Thus, mutual funds enjoy the benefit of
efficiently managed organization.
Diversification of Risk: Mutual funds are invested in a number of companies across a broad
cross-section of industries and sectors. Since mutual fund is a trust that pools the savings of a
number of investors sharing a common financial goal, the associated risk is greatly reduced.
This encourages the small earning groups to invest their savings. Therefore loss in one sphere
will not greatly affect the overall investment status.
Reduction in Transaction costs: If we compare mutual funds to direct investments in the
capital market we will find mutual fund to have less cost. This is due to the savings in
brokerage costs, demat costs, depository costs, etc.
Liquidity: Investments in mutual funds is liquid and can be redeemed at the NAV on any
working day. In mutual funds (especially the open-ended schemes) an investor can get his
money back in 1-5 days.
Transparency: Whatever amount is invested in any scheme is made known to us and we are
periodically informed about all the updates and changes that take place.
Operational Flexibility: Mutual funds offer flexibility by providing various options and
schemes to match individual needs. Funds that are specially open-ended provide high
operational flexibility like:
Systematic Investment Plan (SIP)
Systematic Withdrawal Plan (SWP)
Systematic Transfer Plan (STP)
Tax Planning
Retirement Plan
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High Return and Capital Appreciation: Mutual funds have the potential to provide a
higher return than that from the bank deposits because funds are invested in a diversified
basket of selected securities.
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Disadvantages of Mutual Funds

While the benefits of investing through mutual fund far outweigh the disadvantages, an
investor and his advisor will do well to be aware of a few shortcomings of using the mutual
funds as investment vehicles.
Managing a Portfolio of Funds: Availability of a large number of funds can actually mean
too much choice for the investor. He may again need advice on how to select a fund to
achieve his objectives, quite similar to the situation when he has to select individual shares or
bonds to invest in.
No Control over Costs: An investor in a mutual fund does not have any control over the
overall cost of investing. He pays investment management fees as long as he remains with the
fund. He also pays fund distribution costs, which he would not incur in direct investing.
No Tailor-made Portfolios: Investors who invest on their own can build their own portfolios
of shares, bonds and other securities. Investing through funds means he delegates this
decision to the fund managers. The very high-net-worth individuals or large corporate
investors may find this to be a constraint in achieving their objectives.
Taxes: When making decisions about your money, fund managers don't consider your
personal tax situation. For example, when a fund manager sells a security, a capital-gain tax is
triggered, which affects how profitable the individual is from the sale. It might have been
more advantageous for the individual to defer the capital gains liability.
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Mutual Fund in India

A survey done by Rachna Monga published in live mint side on 15 March 2008 finds that
Mutual fund investors constitute a mere 3% of population. After 15 years of privatization of
mutual fund companies - which are 32 in number - may take pride in managing assets of
more than Rs. 6 trillion, but how many investors do they have?
The Invest India Incomes and Savings Survey 2008, released by IIMS Data works, Shows
that out of 321 million individual wage earners aged between 18 and 59, only 9.63 million
invest in mutual funds in India. So, fund investors constitute a mere 3% of the population
considered for the survey. The survey also reveals that 90% of the savers have no clue about
what a Mutual Fund is?
The industry is now struggling to comply with the new Securities and Exchange Board of
India norms that require every mutual fund investor to quote a Permanent Account Number
(PAN). While the industry may be actively creating awareness about mutual funds as an asset
class, 40% of the population still think that they cant afford to play in this asset class because
it is beyond their financial capacity. An additional 28% think it is a risky asset class.
Complicated application forms, too many products, and a lack of awareness about where to
buy from are some of the reasons that have held potential investors back. Nilesh Shah, chief
investment officer and deputy managing director of ICICI Prudential Asset Management Co.
Ltd. argues that unlike banks or insurance companies, mutual funds have always got a stepmotherly treatment in terms of regulation or taxation. If I am accepting investments only
through cheques, then why should I ask investors to get a PAN? he asks.
According to an article published on 2nd June 2008 by Mr Nirmal Menon the effect has not
been much significant, It says that Call it the staying power of the middle man. When the
market regulator Securities and Exchange Board of India (SEBI) had decided to waive off the
entry load of 2.25 per cent for people wanting to invest directly in mutual funds in January
this year, it almost sounded like the death knell for distributors.
Five months later, things stand where they were. Asset Management Companies (AMCs) and
mutual fund distributors say that, except for some visible movements of direct investments
from corporations and a few high-net individuals, SEBIs decision hasnt really evoked an
encouraging response from retail investors.
Most AMCs state that the percentage of retail investors that approached them before and after
this decision remained the same. Leading AMCs such as Reliance Mutual Fund and JP
Morgan Asset Management India peg this percentage at around 3 per cent.
There has been no significant shift in investor preference towards approaching us directly
since the time the announcement was made, Vikrant Gugnani, President and CEO of
Reliance Mutual Fund, said.He added that distributors were still an integral part of the
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system, as they have the wherewithal and the expertise to offer advisory services to investors
besides handling the documentation and paper work.
Reliance Mutual Fund, which has over 95 per cent of its business coming from distributors,
would soon be increasing its presence in Tier III and Tier IV cities, where these middle men
are the only conduit between the AMCs and aspiring investors. Reliance Mutual Fund has
over 26,000 distributors empanelled with them.
Industry players also point out that the dearth of retail investors directly approaching AMCs
could be attributed to the cloud of pessimism around the recent market slump as well as
falling trading volumes in mutual funds.
Very few investors are making direct investment deals, and this is by and large guided by
distributors, Krishnamurthy Vijayan, JP Morgan Asset Management Indias Managing
Director and CEO, said. But distributors are honest about one thing. According to them, the
impact of the entry load waiver hasnt trickled down to retail investors because a large section
still believe that they do not have the expertise to hand-pick a fund that suits their appetite,
and very few people have the time to apply and process their own documents. Retail side is
not showing up primarily because of the lack of information and time, Partha Gupta, partner,
Investment Idea Financial Services, said.
Though the waiver effect may not have translated into bad news for distributors on the retail
side, the results are beginning to show among wholesalers or large clients.
In case of equity funds, where the waiver applies, wholesalers have begun directly
approaching AMCs, Shirish Patel, director of Mumbai-based Prudent Corporate Advisory,
said. His company has seen 5-7 per cent of his corporate clients approaching the AMCs
directly.
The
Indian
MF
industry
has
Rs
5.67
lakh
crore
of
assets
under
management. As per data released by Association of Mutual Funds in India,

the asset base of all mutual fund combined has risen by 7.32% in April, the
first month of the current fiscal. As of now, there are 33 fund houses in
the
country
including
16
joint
ventures
and
whollyowned
foreign
asset
managers. According to a recent McKinsey report, the total AUM of the Indian mutual
fund
industry
could
grow
to
$350-440
billion
by
2012,
expanding
33%
annually. While the revenue and profit (PAT) pools of Indian AMCs are pegged
at $542 million and $220 million respectively, it is at par with fund houses
in developed economies. Operating profits for AMCs in India, as a percentage
of average assets under management, were at 32 basis points in 2006-07,
35 | P a g e
while the number was 12 bps in UK, 17 bps in Germany and 18 bps in the US,
in the same time frame.
REGULATORY MEASURES BY SEBI

Like Banking & Insurance up to the nineties of the last century, Mutual Fund industry
in India was set up and functioned exclusively in the state monopoly represented by
the Unit Trust of India. This monopoly was diluted in the eighties by allowing
nationalized banks and insurance companies (LIC & GIC) to set up their institutions
under the Indian Trusts Act to transact mutual fund business, allowing the Indian
investor the option to choose between different service providers. Unit Trust was
statutory corporation governed by its own incorporating act. There was no separate
regulatory authority up to the time SEBI was made a statutory authority in 1992. but it
was only in the year 1993, when a government took a policy decision to deregulate
Indian Economy from government control and to transform it market oriented, that
the industry was opened to competition from private and foreign players. By the year
2000 there came to be established in the market 34 mutual funds offerings a variety of
about 550 schemes.
SECURITIES AND EXCHANGE BOARD OF INDIA (MUTUAL FUNDS)

REGULATIONS, 1996
The fast growing industry is regulated by Securities and Exchange Board of India (SEBI)
since inception of SEBI as a statutory body. SEBI initially formulated SECURITIES AND
EXCHANGE BOARD OF INDIA (MUTUAL FUNDS) REGULATIONS, 1993 providing

detailed procedure for establishment, registration, constitution, management of trustees, asset
management
company, about schemes/products to be designed, about investment of funds

36 | P a g e
collected, general obligation of MFs, about inspection, audit etc. based on experience gained
and feedback received from the market SEBI revised the guidelines of 1993 and issued fresh
guidelines in 1996 titled SECURITIES AND EXCHANGE BOARD OF INDIA (MUTUAL
FUNDS) REGULATIONS, 1996. The said regulations as amended from time to time are in
force even today.
The SEBI mutual fund regulations contain ten chapters and twelve schedules. Chapters
containing material subjects relating to regulation and conduct of business by Mutual Funds.
ENTRY LOAD
This addendum sets out changes to be made in all the Offer documents and Key Informatio
Memorandums of BSL Mutual Fund Schemes. Pursuant to SEBI circular number
SEBI/IMD/CIR No. 10/112153/07 dated December 31, 2007, in respect of all the schemes
of BSL Mutual Fund, no entry load shall be charged for direct applications (Purchase and
Switch-in) accepted by the Asset Management Company (AMC i.e. applications accepted
through internet (AMC website or Registrars Website), accepted at AMC or collection
Centres / Investor Service Centres or accepted through any other mode of direct
purchase as prescribed by AMC from time to time that are not routed through any
distributor/agent/broker. It shall also be applicable to additional purchases done directly
by the investor under the same folio and switch-in to a scheme from other schemes if such a
transaction is done directly by the investor. However, for additional purchase under existing
folio, the investor has to mention the word Direct specifically in the application form in
order to avail the benefit of entry load waiver otherwise such application will be treated as
routed through distributor/agent/broker, if any, through whom initial purchase was made.
The above load structure shall be applicable with effect from 4th January, 2008 for all
applications accepted on and from 4th January, 2008
No entry load on mutual funds: Who wins, who loses The recent ruling by the Securities and Exchange Board of India SEBI, on the removal of
entry load on mutual fund investments has brought appreciation as well as criticism from
different corners. Last year SEBI had done away with entry load in cases where the investors
directly invested in mutual funds without going through an agent or a distributor.
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With the new ruling in place, investors will be free to negotiate the commission with their
distributor and if they are smart negotiators they may even pay nil commission on their
investments. Good news for some, not so good news for others. Well let us have a look as to
who stands to benefit and who stands to lose out and the implications of SEBI's decision for
investors, distributors and mutual fund companies.
Who will benefit?

What a silly question to ask? Of course, you, dear investor!
How? Because now that there will be no entry load on the money that you will invest in any
mutual fund scheme all the money that you invest will be used to buy mutual fund units
unlike earlier when 2.25 per cent would be lopped off and the rest invested. The table below
illustrates this better.
As seen in the illustration above because of no entry load on your investments you will make
Rs 9,102 more than what you would have made otherwise. According to the new ruling,
investors will decide with the distributor, an upfront commission or fees to be paid for their
advice and services.
The benefits for investors are:
No entry load
Distributors will get a fee for their advice and hence distributors will have to give
the right advice rather than promoting schemes, which offer them superior
brokerage
No more churning of the portfolio of the investors which many distributors used to
indulge in especially when a New Fund Offer (NFO) would be announced to earn
hefty commissions without any care for your money
Some distributors would make the investors exit their old funds and make them invest in new
fund where the commission would be high. It is not that NFOs are not good investments but
this practice which some of the distributors used to follow was wrong and unethical
However, the flip side is now there also will be no cash back to the investor. Earlier, the
practice was that the distributor would pay back the investor a small amount out of the
commission he earned from mutual fund companies making the investor feel good about it.
The recent SEBI move brings in a greater degree of transparency in investments in mutual
funds and investors will be benefited as they would now get real advice in the true sense.
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Who loses?
The retail distributors, the fund houses to some extent, and the relationship managers of
banks who made a neat commission out of their advice to investors on which funds to buy
and sell.
How?
They will now have to negotiate with the clients and decide on a fee (smart investors can
negotiate this to their own benefit) whereas initially they used to get a fixed brokerage from
the fund house. The taxation angle, though, is also not very clear. Initially service tax was
deducted from the brokerage and the balance was paid to the distributor. Now it is still not
clear how the service tax will be paid.
Whether the distributor will collect that amount from the investor and then pay the tax or is
there any other methodology still stands to be clarified. If distributors have to pay a service
tax, then they will have to take a service tax number. This in turn can lead to distributors
asking fees in the form of cash in order to avoid the service tax.
The retail distributors may reduce or may entirely stop selling mutual funds as it may no
longer be lucrative to them. This will hamper the business of fund houses.
SEBI has also passed a ruling for the distributors to disclose their commissions and other
benefits. This ruling obviously did not go down well with the industry.
There are no changes in the exit load as of now.
SEBI's ruling will be applicable to:
All investments in the mutual fund schemes -- including additional purchases or

switch from one scheme to the other -- with effect from August 1, 2009
New schemes launched from or after August 1, 2009
Systematic investment plan (SIP) registered on or after August 1, 2009
There are still lots of ifs and buts as SEBI is still to issue complete guidelines. But this
preliminary guideline too is a revolutionary step in itself as investors will now be paying for
the right kind of advice. The system of pass back wherein distributors used to pass on their
incentives to the investors for inducing the investors to invest in a particular fund to meet
their personal targets will also be done away with. Now investors can gain access to wellinformed and proper advisors, financial planners to get proper advice for their investments in
accordance with the fee that they pay.
39 | P a g e
Distribution: The prime driver of growth

According a report by Indian Financial Institutions Practices titled Indian Asset
Management: Achieving Broad Based Growth, revenue pools are skewed in favour of
distributors, who corner almost 60 per cent of revenue, with manufacturers accounting for
the rest. Customers choose an AMC primarily on the recommendation of a salesperson,
followed by fund performance and brand strength. Given that distribution in India has
already leapfrogged to an open architecture, with banks, independent financial advisors
(IFAs) and national distributors (NDs) playing an almost equally important role, it is
imperative for AMCs to manage distribution partners with care. Banks are the dominant
channels in the top 8 cities. Even here, however, the cross-sell rates for banks, at an average
of 2 per cent in urban India, are much lower than global benchmarks (e.g., 12 per cent in the
UK and 15 per cent in Belgium). Only foreign banks in India are closer to global
benchmarks, with a cross-sell rate of about 8 per cent. National distributors today offer
better services than banks and IFAs, especially in investor query resolution, and are
primarily focused on HNI customers. Independent financial advisors come across as the
most preferred primary channel for distribution beyond the top 8 cities.
Branding: The key to influencing the perception of

performance
According a report by Indian Financial Institutions Practices titled Indian Asset
Management: Achieving Broad Based Growth, fund performance is a necessary but not
sufficient condition for driving AUM growth. Funds in the top docile (with respect to
historic growth) have witnessed maximum growth across asset classes, from pure equity to
pure debt products, and across time. However, among different funds, growth varies
significantly for top-performing schemes. The research shows that a positive perception of
the brand induces a positive view of performance. Strong brands are able to influence
perception of fund performance and hence spur growth, making brand management one of
the critical success factors in the industry.
It expect players to differentiate themselves on the dimensions of strategy and focus and that
winners will be those making an explicit choice among the three strategiesat-scale
players, asset class-focused players, and multi-boutique players.
40 | P a g e
Use of the Internet

A research report Investors Mutual Fund Purchase Practices at Odds with Those
Recommended by Investor Educators conducted by CFA found out that policymakers are
increasingly looking to the Internet to reduce the cost and increase the ease of communicating
with investors. Already, an enormous amount of valuable information is available online to
assist mutual fund investors in making fund selections.
Not only can prospectuses be downloaded, but many fund companies provide on-line fund
snapshots that make key information about the fund easily accessible. In addition, fund
ranking services and others offer tools for evaluating funds, including calculators that enable
investors to compare the costs of various funds. The entire sample of survey respondents was
asked about their willingness to use the Internet for various purchase-related activities.
1. To obtain general information about funds
2. Research individual funds
3. To receive periodic reports and disclosure documents
4. To use a calculator to compare costs
5. To communicate with a financial services professional
6. To purchase mutual fund
41 | P a g e
Problem identification
Management Decision Problem
To determine the satisfaction level of existing channel partners of Birla Sun Life Asset
Management Company and to analyze the effect of waiver of entry load on direct
applications in mutual funds.
Marketing Research Problem

1. To determine the underlying parameters that drive satisfaction of dealers in Birla Sun
Life Mutual Funds.
2. To determine the effect of waiver of entry load on direct applications in mutual funds.
Research Questions
1. What are the various parameters of AMCs service along which channel partner
satisfaction/ dissatisfaction can be measured?
2. What is the degree of channel partner satisfaction on different parameters of different
AMCs Services?
3. Are the identified parameters of channel partner satisfaction related to the overall
customer satisfaction?
4. Awareness of SEBI circular regarding waiver of entry load on direct applications in
mutual funds.
Scope of the Study

Product Scope: The research was conducted to know about the prospects of various new
investment instruments coming up in India like Gold ETFs, Real estate mutual funds, fund of
funds. The research is also conducted to analyse the future of water funds that is still in its
infancy state globally.
Area Covered: Individual Financial Advisors of Birla Sun Life Mutual Fund, Jaipur branch.
42 | P a g e
Research Methodology
Research Design
First an exploratory research was conducted to get some insights about the topic. Secondary
data was also collected. Further descriptive research was conducted to determine the
satisfaction level of existing channel partners and to analyze the effect of waiver of entry load
on direct applications in mutual funds.
Data Collection
Both primary as well as secondary data was collected.
1) Secondary Data: We did an extensive research on the Internet and referred a few financial
magazines and journals to determine the satisfaction level of existing channel partners and to
analyze the effect of waiver of entry load on direct applications in mutual funds.
2) Primary Data: Secondary data obtained cannot be generalized on our research population
hence we collected primary data as well.
Instrument Used For Data Collection

For collecting primary data we use Questionnaire as our instrument. We have incorporated
both unstructured and structured type of questions in the questionnaire. Structured
questionnaire are asked on following forms.
1. Multiple choice questions
2. Scale questions
Measures of Scaling
Out of four basic scales we take most of our measure on ratio and interval scale.Scaling
techniques used are:
1. Constant sum scaling
2. Likert scaling
43 | P a g e
Sampling Design Process

Target population
All individual financial advisors of Birla Sun Life Mutual Fund, Jaipur branch having
number around 150.
Sampling frame
All IFAs under Birla Sun Life Mutual Fund, Jaipur branch visiting the office and covered
during calls at their offices.
Sampling technique
Simple random sampling is used and sample was picked randomly.
Sample size
We surveyed 78 respondents during our survey.
44 | P a g e
Data Analysis
Q1. How long have you been into Mutual Fund industry?
Inference: Most of the channel partners are with an experience of less than 5 years in the
Mutual fund industry.
The channel partners are young into this business which represents a more energetic and
enthusiastic working population.
Q2. Please rank the parameters given below according to your preference in choosing
any AMC.
PARAMETERS
MEAN
RANK
Better Services
Good Brand
Returns
Better Incentive Structure
Timely Brokerage
4.12
3.89
2.77
3.03
3.47
5
4
1
2
3
Inference: From the above table it can be inferred that Individual financial advisors give
preference to returns of the funds above all the factors which is related to the benefit of the
investors. Next to it they consider their own benefits such as incentive structure, services,
timely brokerage etc.
45 | P a g e
Q3. Please rate the following AMCs on the basis of these parameters.
The above table shows the scores of satisfaction of the various channel partners surveyed.
The graph above shows the channel partners satisfaction scores on each of the factors and
total satisfaction score for each of the AMCs, where a score of 5 represents the most
satisfied partner and a score of 1 represents the least satisfied partners.
46 | P a g e
Inference:
Birla Sun Life a good score in services and timely brokerage, but it is far below the
highest level, this shows that there is a lot of scope of improvement.
Birla Sun Life must focus on building a brand value where it has scored very less.
Regression analysis
Regression analysis has been used for identifying parameters that are actually related to
overall channel partner satisfaction. Regression analysis is used for linking over all channel
partner satisfaction as a dependent variable and the five factors of channel partner satisfaction
as independent variables. For all AMCs services, returns and incentive structure were
significant with R square equal to 0.991
The regression equation comes out to be 1.308+1.263F1+0.764F2+0.574F3
The service factor is most important in determining channel partner satisfaction.
Inference:
It can be inferred from the result of Regression analysis that out of 5 factors only 3 factors
are related to the overall channel partner satisfaction. These are
Services
Returns
Incentive Structure
Q4. Rate the following parameters of Birla Sun Life AMC on a scale of 1 to 5.
PARAMETERS
AVERAGE
Frequency of Relationship Manager Visit
3.451
Clarity of forms and other material
4.053
47 | P a g e
Services of Registrar CAMS
3.127
Cost
2.724
Quality of Services
3.581
Brokerage Structure
3.017
Fund Performance
3.745
Frequency of new funds
3.819
Inference:
Birla Sun Life Mutual Fund scored highest points on the clarity of forms and other
material.
It scored lowest on the cost that is incurred by the IFAs.
There is a lot of scope of improvement in other parameters too.
Q5. Are you satisfied with the services of Birla Sun Life Mutual Fund?
48 | P a g e
From the upper graph we can say that about 69% of the channel partners are satisfied
by the services of Birla Sun Life Mutual Fund.
Inference: With this we can infer that not a very high number of channel partners are
satisfied by the services of Birla Sun Life Mutual Fund. The satisfaction level must be
increased by providing better services.
Q6. What percentage of your investors/clients do you think are aware of the SEBI
circular regarding waiver of Entry Load on Direct application?
In the graph above we can see that
Around 39% of the channel partners think that about very few of their investors know
about the SEBI circular.
Around 37% say that according to their estimates more than 25% and less than 50%
of their investors know about the SEBI circular.
Only 24% of the channel partners think that more than 50% of their total investor base
has knowledge about the SEBI circular regarding waiver of Entry Load on Direct
applications.
Inference: With this we can infer that not many investors have knowledge about the SEBI
circular regarding waiver of Entry Load on Direct applications. So the effect on the business
of the channel partners is not much significant.
49 | P a g e
Q7. Which type of investors do you think prefer giving direct application?
We can measure by using two different options at two different ends like
a. Male / Female
b. Computer Savvy / Non Computer Savvy
c. Service Man / Business Man
50 | P a g e
Inference: From above three graphs we can infer that
Most of the direct applications in the mutual funds are given by the male
investors because they have better knowledge about the SEBI circular on
waiver of entry load on direct application.
People who are computer savvy prefer giving direct application through
internet as compared to the non computer savvy investors since most of the
asset management companies provide option of direct application through
their websites. Computer savvy investors consider it secure and easier to apply
through internet.
Investors who are into service or are retired personnel prefer giving direct
application as compared to the investors who are into business.
Q8. Do you see a decrease in the average AUM that you hold with the AMCs, since the
issue of SEBI circular on waiver of Entry Load?
51 | P a g e
Inference: From the response given by the channel partners to this question, this can be
inferred that 67% of the total channel partners survyed didnt had any significant decrease on
their average assets under managementthat they hold with different AMCs.
Q9. Do you think that the effect of SEBI circular on Entry Load has started or will
start with a time gap?
Inference: With the above response graph it can inferred that the channel partners holds a
view that the effect of SEBI circular regarding waiver of entry load on direct applications in
mutual funds will start with a time gap as the awareness regarding such circular will rise.
52 | P a g e
Q10. What do you think the AMC should do with regards to the Entry Load?
a. Reduce the load partially and let the AMC bear the charges.
b. Remove the charges completely and let the AMC and the broker share the charges.
c. Let it be as it is, the effect will fade in some time.
Inference: From above graph we can say that:
They dont consider any of the solutions as significant enough for this problem.
They had different views over this question with every option being chosen about
30%. Still we can see that there was more inclination towards removing the loads
completely let the AMC and channel partners bear the losses.
53 | P a g e
Result
Major Finding
Most of the channel partners of the Birla Sun Life Mutual Fund, Jaipur that have been
surveyed have an experience of less than 5 years into this mutual fund industry. This
constitutes of about 67% of the total population surveyed.
It was inferred that Individual financial advisors give preference to returns of the
funds above all the factors which is related to the benefit of the investors. Next to it
they consider their own benefits such as incentive structure, services, timely
brokerage etc.
We can infer from this survey that not a very high number of channel partners are
satisfied by the services of Birla Sun Life Mutual Fund. The satisfaction level must be
increased by providing better services.
With this we can infer that not many investors have knowledge about the SEBI
circular regarding waiver of Entry Load on Direct applications. So the effect on the
business of the channel partners is not much significant.
It was found out by this survey that

a. Most of the direct applications in the mutual funds are given by the male investors
because they have better knowledge about the SEBI circular on waiver of entry
load on direct application.
b. People who are computer savvy prefer giving direct application through internet
as compared to the non computer savvy investors since most of the asset
management companies provide option of direct application through their
websites. Computer savvy investors consider it secure and easier to apply through
internet.
c. Investors who are into service or are retired personnel prefer giving direct
application as compared to the investors who are into business.
From the response given by the channel partners this can be inferred that 67% of the
total channel partners survyed didnt had any significant decrease on their average
assets under managementthat they hold with different AMCs since the issue of this
circular.
This was found out by the survey that the channel partners holds a view that the effect
of SEBI circular regarding waiver of entry load on direct applications in mutual funds
will start with a time gap as the awareness regarding such circular will rise.
From the survey it can be inferred that:

54 | P a g e
a. They dont consider any of the solutions as significant enough for this problem.
b. They had different views over this question with every option being chosen about
30%. Still we can see that there was more inclination towards removing the loads
completely let the AMC and channel partner bear the losses.
The effect of the SEBI circular on waiver of entry load on direct application in mutual
fund is not significant. It will start as the time passes and investors get to know about
the circular.
Recommendations
The services provided by Birla Sun Life Mutual Fund, Jaipur must be improved
because the satisfaction level among the channel partners is not so high. It can be
improved by reducing the defaults in case of wrong entries of applications and
brokerage defaults like untimely cheque and incorrect amount.
The factsheet CONNECT and other promotion material which is send monthly and
other promotional material stationary must reach timely to the branch offices.
The frequency of visits by the Relationship Manager must be increased. The channel
partners felt that the frequency of visits was not adequate. They were also unsatisfied
by their relationship manager changing very frequently.
The effect of the SEBI circular regarding waiver of entry load on direct application in
mutual fund is not significant and will start increasing with a time gap. Offers such as
waiver of loads on some funds can be circulated regularly so that the effect is reduced.
More and more meeting such as high tea can be conducted so that an adequate
number of touch points are reached. The Individual financial advisors are keener to
listen to the fund managers as compared to the sales managers so fund managers can
also be involved in the meetings.
Limitations
Sampling Error The sample size is small only 78. We filled 85 questionnaires but 7
out of those were rejected.
Response Error: It of two type

1. Inability error: Many a times it so happened that the respondents were
empanelled recently so they didnt had much experience about the services of
Birla Sun Life Mutual Fund.
2. Unwillingness Error: Respondents were deterrent to provide information
because of lack of time.
55 | P a g e
Other limitations: Area of study was limited to Jaipur branch only; hence
recommendation cannot be generalized for all branches of Birla Sun Life MutualFund
throughout India.
Learning
It incorporated more professionalism in the way I worked.
This was my first chance to apply my theoretical knowledge into real world which
taught me that theory is not completely applicable to the practical world.
Tele calling.
Convince people from their busy schedules.
Extract sensitive information
Corporate culture
Dealing with agents.
Scope of further studies
More number of Individual financial advisors could be included in this survey so that
more data is gathered and accuracy of study increases.
The study could be conducted sometime later so that the effect of the SEBI circular
could be determined in significant terms.
The study could be conducted in more number of cities with different investment
patterns so that better scenario can feature.
56 | P a g e
QUESTIONNAIRE
Dear Sir/Madam
This is a Marketing Research initiative taken up by a mutual fund asset management
company to analyze the effect of waiver of entry load on direct applications in mutual
funds. Hereby, we request you to kindly provide us with the following information which
will be kept confidential and will not be used for any other purpose without your prior
permission.
1. How long have you been into Mutual Fund industry?

a. 0-2 Years
b. 2-5 Years
c. 5-10 Years
d. >10 Years
2. Please rank the parameters given below according to your preference in
choosing any AMC?
a. Better services
b. Good Brand
c. Returns
d. Better incentive structure

e. Timely brokerage
f. Any other__________
3. Please rate the following AMCs on the basis of these parameters

Birla
ICICI
Reliance UTI
LIC
a. Services
b. Good Brand
c. Timely Brokerage
d. Returns
e. Incentive Structure
4. Rate the following parameters for Birla Sun Life AMC on a scale of 1 to 5
a.
b.
c.
d.
e.
f.
Frequency of Relationship Manager Visit

Clarity of forms and other material
Services of Registrar CAMS
Cost
Quality of Services
Brokerage Structure
57 | P a g e
g. Fund Performance
h. Frequency of new funds
5. Are you satisfied with the services of Birla Sun Life Mutual Fund?
a. Yes
b. No
6. What percentage of your investors/clients do you think are aware of the SEBI
circular regarding waiver of Entry Load on Direct application?
a. < 25 %
b. Between 25-50 %
c. > 50 %
7. Which type of investors do you think prefer giving direct application?
a. Male
b. Computer Savvy
c. Service Man
Female
Non Computer Savvy
Business Man
8. Do you see a decrease in the average AUM that you hold with the AMCs,
since the issue of SEBI circular on waiver of Entry Load?
a. Yes
b. No
9. Do you think that the effect of SEBI circular on Entry Load has started or will
start with a time gap?
a. Yes
b. No
10. What do you think the AMC should do with regards to the Entry Load?
a. Reduce the load partially and let the AMC bear the charges.
b. Remove the charges completely and let the AMC and the broker
share the charges.
c. Let it be as it is, the effect will fade in some time.
____________________________________________________________________
THANK YOU FOR YOUR PARTICIPATION
58 | P a g e
BIBLIOGRAPHY
Books:
ARUNAJATESAN S., VISHWASNATHAN T.R., Macmillan Publishers India
ltd.,2009
AGARWAL O.P., Himalaya Publishing House, 2010 edition
GULATI C. NEELAM, Anurag Jain for Excel books, 2007
VERMA M.M, Educational Publishers, 2009
WEBSITES:
http://en.wikipedia.org
http://mutualfund .birlasunlife.com
www.mutualfundsindia.com
http://investopedia.com/articles/mutualfunds
http://www.moneycontrol.com/financials/bsl/balance-sheet/BSL
59 | P a g e
http://www.sebi.gov.in/boardmeetings/124/mfdistributors.
North American Retail Financial Services by Bruce D. Temkin with Bill Doyle,
Catherine Graeber, Mary Pilecki, and Brad Strothkamp
European Retail Financial Services by Benjamin Ensor with Cliff Condon, Jost
Hoppermann, Tim van Tongeren, and Ashara Giordanelli on April 27, 2007.
www.consumerfed.org/pdfs/mutual_fund_survey_report.pdf.
http://www.raddon.com/press/article98.asp
http://www.amazines.com/article_detail.cfm/392303?articleid=392303
http://birlasunlife.com/BirlaSunLife/Mutual_Fund/BSLAMC_MP/AMCMPindex.asp
x
60 | P a g e

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PROJECT REPORT

Birla Sun Life Asset Management

SUBMITTED IN PARTIAL FULFILMENT OF BACHELORS OF BUSINES MANAGEMENT

THE IIS UNIVERSITY, JAIPUR

Mutual Fund Investment Strategies -

Objective of the study

Conceptual Framework about Mutual Fund -

Mutual Fund Classification -

Overview of the mutual fund industry -

Conceptual Framework About Mutual Fund Organisation of a Mutual Fund

Terminologies Used In Mutual Fund

Advantages Of Mutual Fund

Disadvantages Of Mutual Funds

Regulatory Measures By SEBI Entry Load

Mutual Fund Types -

Distribution: The primary drive of growth Branding -

Use of the Internet -

Management Decision Problem -

Marketing Research Problem

Scope Of The Study -

Instrument Used For Data Collection -

Sampling Design Process

Data Analysis and interpretation

Scope Of Further Studies

Overview of the mutual fund industry

Figure 4: Ownership of mutual funds (as of end-March 2007)

Ownership share (%) Asset amount (%)

Source: Association of Mutual Funds in India

The history of mutual funds

Source: Association of Mutual Funds India

We anticipate trends and help clients plot the future course.

Why Birla Sun Life Mutual Funds?

Birla Sun Life Frontline Equity Fund

ICRA Mutual Fund Awards 2008

Schemes of BSL mutual fund

Mutual Fund Investment Strategies

Systematic Withdrawal Plan (SWPs):

Systematic Transfer Plan (STP):

Find out their preference parameters for selling a particular fund.

Rationale of the study

Conceptual Framework about Mutual Fund

Organization of a Mutual Fund

Terminologies Used In Mutual Fund

Mutual Fund Classification

Firstly, funds are usually classified in terms of their constitution as closed-end or

Finally, funds can also be classified as being tax-exempt or non-tax-exempt,

Mutual Fund Types

Advantages of Mutual Fund

Disadvantages of Mutual Funds

Mutual Fund in India

management. As per data released by Association of Mutual Funds in India,

REGULATORY MEASURES BY SEBI

SECURITIES AND EXCHANGE BOARD OF INDIA (MUTUAL FUNDS)

EXCHANGE BOARD OF INDIA (MUTUAL FUNDS) REGULATIONS, 1993 providing

company, about schemes/products to be designed, about investment of funds

Who will benefit?

All investments in the mutual fund schemes -- including additional purchases or

Systematic investment plan (SIP) registered on or after August 1, 2009

Distribution: The prime driver of growth

Branding: The key to influencing the perception of

Use of the Internet

Marketing Research Problem

Scope of the Study

Instrument Used For Data Collection