A Project Report On

Need of financial advisors for

mutual fund investors
(With special reference to KARVY)

Interim report SUBMITTED BY:

JINU P J
Reg No. – IISCS/08-10/92

INDORE

1
 Acknowledgement

Sometimes words fall short to show gratitude, the same happened with
me during this project. The immense help and support received from
Karvy stock broking limited overwhelmed me during the project.

My sincere gratitude to Branch Head Karvy

stock broking, Korba Branch and Mr. Swapnil Kothari (Director, IISCS,
Indore), for providing me with an opportunity to work with karvy stock
broking limited.

I am highly indebted to Ms. Sarita Pareek Training head Karvy Stock

Broking, Korba and company project guide, who has provided me with
the necessary information and his valuable suggestion and comments
on bringing out this report in the best possible way.

I also thankful to faculties of IISCS, Indore who has sincerely supported

me with the valuable insights into the completion of this project.

I am grateful to all of the members of Karvy Stock Broking Korba

branch, who have helped me in the successful completion of this
project.

Last but not the least; my heartfelt love for my parents, whose
constant support and blessings helped me throughout this project.

2
CONTENTS

1. MAIN TEXT FOR RESEARCH PROJECT

1.1 Introduction
1.2 Scope of the work
1.3 Objective of Research
i) Academic Objective
ii) Research Objective
1.4 Research Methods/ Tools used
1.5 Results (Tabular / Pictorial representation i.e. graphs, charts etc.)
1.6 Analysis and discussions of results
1.7 Recommendations/ Suggestions
1.8 Limitations of study
1.9 Conclusions
Sample of questionnaire used

2. MAIN TEXT FOR DEPARTMENT BASED ON THE JOB TRAINING

2.1 Introduction of company

a. Brief history of company’s establishment
b. Organizational Chart
c. Major achievements of the company
d. SWOT Analysis
e. 4P analysis
f. Competitor’s Analysis
2.2 Introduction of the concerned department
a. Hierarchy
b. Description of the various responsibilities/ duty assigned
c. Description of working
2.3 Scope of the Project
2.4 Objective of Project
a. Academic Objective
b. Research Objective
2.5 Description of work assigned during training
2.6 Learning involved during summer training
2.7 Suggestions/ Recommendations
2.8 Conclusion

3
 DECLARATION

This is to certify that Summer Training Report

entitled “Need of Financial Advisors for Mutual
Fund Investors”. Which is submitted by me in
partial fulfillment of the requirement for the
award of degree PGP Dual, at Indore Indira
Institute of Career Studies, Indore comprises
only my original work and due
acknowledgement has been made in the text to
all other material used.

Date:

Name of the Student:

Signature of the Student:

4
 BONAFIDE CERTIFICATE FROM COMPANY

This is to certify that this project report “Need of Financial

Advisors for Mutual Fund Investors” is the

bonafide work of “JINU P J” who carried out the project work under my

supervision from 17/08/2009 to 30/09/2009.

Branch Head
Karvy Stock Broking Ltd

Training Head
Karvy Stock Broking Ltd

Company Seal

5
 BONAFIDE CERTIFICATE FROM INSTITUTE

This is to certify that the project report entitled “Need of

financial advisors for Mutual Fund Investors” at

“Karvy Stock Broking Limited” is a bonafide record of

work done by "JINU P J”, and submitted in partial fulfillment of

the requirements of PGP (Dual) program of Indore Indira

School of Career Studies, Indore.

SWAPNIL KHOTARI
DIRECTOR (IISCS)

Institute Seal

6
 ABSTRACT
India’s economy is highly developing. The development is taken place due to the growth
in the financial system. This financial system provides the background to various
investors regarding varied options to invest. Thus, development of the economy depends
on how these investors invest for the well being in long run.

As financial markets become more sophisticated and complex, investors need a financial
intermediary who provides the required knowledge and professional expertise on
successful investing. Mutual Funds represent perhaps the most appropriate investment
opportunity for investors. No wonder the concept of Mutual Fund was initially developed
in the U.S. market, but the entry of the concept in the Indian Financial Market was in the
year 1964 with the formulation of the UTI, at the initiative of the RBI and Govt. of India.

For most people, money is a delicate matter and when it comes to investing they are
wary. Simply because there are many investment options out there, each out promising
the other. An important question facing many investors is whether to invest in Banks,
National Savings, Post office, Non-banking finance companies, Fixed deposits, Shares
etc. or to invest distinctively in Mutual Funds.

It has been perceived that there is huge potential market in the region of Korba. Thus an
exploratory research shows that due to high industrialization & development in Korba &
near by region we can predict that there is huge potential for Mutual Fund Market in
Korba .

Thus the purpose of this research was to find why people do not actively invest in mutual
fund in spite of various benefits like Professional management, Diversification,
Convenience liquidity, Flexibility, Tax benefits etc. as well as to find out potential of
business of KARVY in distribution of Mutual Fund in Korba City.

After performing the detailed exploratory research by interviewing different persons who
act as investment advisor like Insurance advisor and Post office advisor etc. with the help
of questionnaire, certain facts were revealed regarding the view about Mutual Funds in
the mind of investors.

I have observed that approximately 60% of the people are unaware of Mutual Funds but
most of them are interested to know about Mutual Funds and if proper information &
knowledge provided then they will invest in mutual funds in future.

People from service class prefers safety of income plus the regular income as well as tax
benefits while on the other hand Professional and Businessman focus on high return with
some risk.

7
For growth and development of the Mutual Fund Industry, the misconception regarding
Mutual Fund should be removed & the awareness for the same should be made.

LITERATURE REVIEW

Korba is known as Power City in india, due to rapid industrialization and development
there is big opportunity and potential for financial product marketing. Mostly the people
belong to Middle or Service Class who normally spent their maximum time in works or
services, a part from this they don’t have proper knowledge about Mutual Fund. Mostly
people want to invest their money in safe investment like govt. Insurance & Fixed
Deposit (e.g LIC, POST OFFICE, NSC etc.) which gives low & secured returns in future.

Mutual Funds normally based on Capital Market and the return

depends on Market conditions. Due to many fraud cases (like Fine India Investment &
City limonize) people don’t have faith in private sector financial products and also due to
Global Market Slow down Mutual Funds not given good returns; this is also another
reason that people don’t believe in Mutual Fund.

As I was worked as a trainee in KARVY a Financial Consultant an

reputed Financial Institution in India and 5th position in overall Financial Institution in
India. I had faced many people who have such mentality (Stated above) about investment
in present time. It is very difficult to conveyance the people for investment and I tried my
best to make them invest in Mutual Funds.

I was dealing with ICICI RIGHT Mutual Fund; it’s a Tax Saving
Fund. In korba people belong to 50% service class, 20% Business Class and 30% people
are of lower level. People who belong to Service & Business Class were come under
Income Tax, those people prefer Tax Saving Fund. And my families belong to service
class, so I know many people of service class in my surroundings & community. I have
approached to many friends, neighbors and other people to conveyance them to invest in
ICICI RIGHT Fund which will give positive return in future. And many of them given a
good response to it and also invested to this Fund.

8
 Population of Korba
Service Class
Business Class
Lower Class

Lower Class
30%

Service Class
50%

Business
Class
20%

Strength & Weakness of Current Work.

Strength

• Goodwill of the Company.

• Good Market Condition.
• Conveyance Power.
• Good Communication Skill.
• Knowledge of working Area.
• Strong Hold in working area.
• Free Entry Load.

Weakness

• Past Market Condition (market slow down).

• Fraud Cases of other Financial & Brokering company.
• Most people are from middle class and they have big responsibility.
• Lack of knowledge regarding Mutual Funds.

9
[1] MAIN TEXT FOR RESEARCH PROJECT

Organization overview

10
(1.1) Introduction:

“Success is a journey, not a destination.” If we look for examples to prove this quote
then we can find many but there is none like that of karvy. Back in the year 1981, five
people created history by establishing karvy and company which is today known as
karvy, the largest financial service provider of India.
Success sutras of karvy:
The success story of karvy is driven by 8 success sutras adopted by it namely trust,
integrity, dedication, commitment, enterprise, hard work and team play, learning
and innovation, empathy and humility. These are the values that bind success with
karvy.
Vision of karvy:
To achieve & sustain market leadership, Karvy shall aim for complete customer
satisfaction, by combining its human and technological resources, to provide world class
quality services. In the process Karvy shall strive to meet and exceed customer's
satisfaction and set industry standards.
Mission statement:
“Our mission is to be a leading and preferred service provider to our customers,
and we aim to achieve this leadership position by building an innovative,

11
enterprising , and technology driven organization which will set the highest
standards of service and business ethics.”

The success ladder:

Company overview:
Karvy was established as karvy and company by five chartered accountants during the
year 1979-80, and then its work was confined to audit and taxation only. Later on it
diversified into financial and accounting services during the year 1981-82 with a capital
of rs.150000. it achieved its first milestone after its first investment in technology. Karvy

12
became a known name during the year 1985-86 when it forayed into capital market as
registrar.
Evolution of KARVY:
It is well said that success is a journey not a destination and we can see it being proved by
karvy. Under this section we will see that how this “karvy and company” of 1980 became
“karvy” of 2008. Karvy blossomed with the setting up of its first branch at Mumbai
during the year 1987-88. The turning point came in the year 1989 when it decided to
enter into one of the not only emerging rather potential field too i.e; stock broking. It
added the feather of stock broking into its cap. At the same time it became the member of
Hyderabad Stock Exchange through associate firm karvy securities ltd and then karvy
never looked back……..it went on adding services one after another, it entered into retail
stock broking in the year 1990. Karvy investor service centers were set up in the year
1992. Karvy which already enjoyed a wide network through its investor service centers,
entered into financial product distribution services in the year 1993. One year more and
karvy was now dealing into mutual fund services too in the year 1994 but it didn’t
stopped there, it stepped into corporate finance and investment banking in the year 1995.

Karvy’s strategy has always been being the first entrant in the market. Karvy again hit the
limelight by becoming the first registrar in the country to be awarded ISO 9002 in the
year 1997. Then it stepped into the other most happening sector i.e; IT enabled services
by establishing its own BPO units and at a gap of just 1 year it took the path of e-
Business through its website www.karvy.com . Then it entered into insurance services in
the year 2001 with the launch of its retail arm “karvy- the finapolis: your personal finance
advisor”. Then in the year 2002 it launched its PCG(Private Client Group) which looks
after its High Networth Individuals .and maintain their portfolio and provides them with
other financial services. In the year 2003, it commenced secondary debt and WDM
trading.
It was a decade which saw many Indian companies going global…..so why the largest
financial service provider of India should lag behind? Hence, karvy launched “karvy
global services limited” after entering into a joint venture with Computershare, Australia
in the year 2004.the year 2004 also saw karvy entering into commodities marketing
through karvy comtrade.

13
Year 2005 saw karvy establishing a separate branch for its insurance services under the
head “ karvy insurance broking ltd” and in the same year, after being impressed with the
rapid growth of karvy stock broking limited, PCG group of Hong Kong acquired 25%
stake at KSBL. In the year 2006, karvy entered into one of the hottest sector of present
time i.e real estate through Karvy realty& services (India) ltd. hence , we can see now
karvy being established as the lagest financial service provider of the country.

Now karvy group consists of 8 highly renowned entities which are as follow:

1. : The first securities registry to receive ISO 9002 certification in

India. Registered with SEBI as Category I Registrar, is Number 1 Registrar in the
Country. The award of being ‘Most Admired’ Registrar is one among many of the
acknowledgements we received for our customer friendly and competent services.

2. : karvy stock broking ltd. Consists of five units namely stock

broking servics, depository participant, advisory services, distribution of financial
products, advisory services and private client goups.

3. : it is registered with SEBI as a category 1 merchant banker. Its

clientele includesinclude leading corporates, State Governments, foreign institutional
investors, public and private sector companies and banks, in Indian and global markets.

4. : karvy insurance broking ltd is also a part of karvy stock broking

ltd. At Karvy Insurance Broking Limited both life and non-life insurance products are
provided to retail individuals, high net-worth clients and corporates.

5. : The company provides investment, advisory and brokerage

services in Indian Commodities Markets. And most importantly, it offer a wide reach
through our branch network of over 225 branches located across 180 cities.

14
6. : Karvy Global is a leading business and knowledge process
outsourcing Services Company offering creative business solutions to clients globally. It
operates in banking and financial services, inurance, healthcare and pharmaceuticals,
media , telecom and technology. It has its sales and business development office in New
York, USA and the offshore global delivery center in Hyderabad, India

7. : Karvy Realty (India) Limited is engaged in the business of real

estate and property services offering:

• Buying/ selling/ renting of properties

• Identifying valuable investments opportunities in the real estate sector
• Facilitating financial support for real estate and investments in properties
• Real estate portfolio advisory services

8. : it is a joint venture between Computershare, Australia and Karvy

Consultants Limited, India in the registry management services industry.

Organization structure of karvy:

talking about the organization structure of karvy, we have the board of directors as the
supreme governing body , the chairman being Mr. C parthasarthy, mr. m yugandhar as
the managing director, mr m s ramakrishna andmr. Prasad v. potluri as directors.

The board of diretors head the karvy group, karvy computershares limited, karvy
investors services ltd., karvy comtrade, karvy stock broking ltd., and karvy global
services ltd.

Karvy group being the flagship company looks after the functional departments such as
corporate affairs, group human resources, finance & accounting, training & development,
technology services and corporate quality.

15
Karvy computershare private limited facilitates mutual fund services, share registry and
issue registry whereas merchant banking is looked after by karvy investor services ltd.
Karvy stock broking ltd heads its another branch too ie. Karvy insurance broking ltd. The
services offered by KSBL are: stock broking, depository, research, distribution, personal
client group and institutional desk. And finally the BPO services are managed by karvy
global services ltd. Summarizing it in a diagram, it can be presented as:

Spectrum of services offered by karvy:

Karvy being the top registrar and transfer agent, functions as registrar in most of the
issues in the country. Talking about the mutual fund services offered by karvy, we can
get the products of 33 AMCs over here. it deals in both closed ended funds as well as
open ended too. Now one must be thinking why to get the mutual funds from karvy
instead of getting it directly from AMCs???we have great reasons for it: the first one
being ; if we avail the services of karvy then we can get the information about all the
AMCs and their products at a single place along with expert recommendations whereas at

16
an AMC we can get information about the products of that specific AMC only. And the
second being wide network of karvy…. nowadays we can find karvy offices at remote
areas too.

Along with these, karvy is very well handling the role of depository participant. Being
registered with both the depositories i.e.; NSDL (national securities depository ltd) and
CDSL (central depository services ltd), karvy can have access to both. Its wide network
also facilitates it in distribution of retail financial products.
Karvy believes in being updated always. So it is always ready to use latest technologies
so that its clients always be in touch with the latest happenings along with karvy. It offers
e-business through internet through its website: www.karvy.com . Other than it, it also
provides its various services through SMSes.
Karvy’s services are not limited to its investors only rather its offerings are for its
corporate clients and distributors too. it is very well aware of the fact that in this era of
neck to neck competition, we cant ignore any of the aspects of our business….so there’s a
offering for everybody…everyone’s welcome at karvy.
Why should investors choose for karvy?
Excellence is next to nothing….and here at karvy everybody tries their best to offer
excellent services to its clientele through its offerings maintaining the karvy culture
which includes:
1. Controlled and low cost service culture: karvy is there to serve its client at the
minimum possible cost. it controls cost by its various cost- cutting techniques and
minimization of avoidable costs.
2. Large volume processing capability: being the largest financial service provider in the
country, it has the unique distinction of operating its activities on a large scale which
benefits all the parties cordially.
3. Adherence to strict time schedule: karvy knows that time is money and tries it best to
finish the task within the stipulated time schedule.
4. Expertise in coordinating multi-location responses: karvy has got a wide network and
hence one can find its branches at most of the places in India. Thus it enjoys its presence
everywhere and coordinates among itself in solving the queries and in responding to any
situation.

17
5.Expertise in managing independent entities such as banks, post-office etc.: the work
culture of karvy and the ethics followed inside karvy makes its workforce compatible
with everybody, so the karvy people establishes good coordination with independent
entities too.

6. Pooling of group resources: karvy group consists of eight subsidiaries, so it can easily
pool up its resources for accomplishment of its goals, whenever needed. The groups can
help each other whenever there are peaks and lows, and even in the case when they have
huge targets just as we saw few years back, Tata group pooling its resources to acquire
Corus.
How karvy achieved it?
The core competency of karvy lies in the following points due to which it enjoys a
competitive edge over its competitors. The following culture adopted by karvy makes it
all time favorites among its clientele:
1. Professionally managed by qualified and trained manpower.
2. Uniquely structured in-house software and hardware department
3. Query handling within 48 hrs.
4. Strong secretarial, accounting and audit systems.
5. Unique work culture of working 7 days a week in 3 shifts.
6. Unmatched network spreading all over India.

How Achievements sounds synonymous to karvy:

The landmarks achieved by karvy very well define its success story. In the previous
pages, we learnt how a company started by five chartered accountants, named as karvy
and company turned into today’s karvy group, the largest financial intermediary of India.
But success didn’t came to karvy at a flow, the hard work and dedication of its workforce
made it what it is today…gradually it achieved the following landmarks and now it has
became what we call the karvy group, now it is:
1. Largest independent distributor for financial products.
2. amongst the top 5 stock broker.
3. among the top 3 depository participants.
4. Largest network of branches & business associates.
5. ISO 9002 certified operations by DNV.
6. amongst top 10 investment bankers.
7. Adjudged as one of the top 50 IT users in India by MIS south Asia.
8. full- fledged IT driven operation.

9. India’s no.1 registrar & securities transfer agent.

18
Clientele of karvy:
Karvy’s culture has helped karvy in achieving such a distinct position in the market
where it can boast of its huge client base. Be it a retail investor investing Rs. 500 in a SIP
in Reliance mutual fund or be it the largest corporate house of the country: Reliance
industries- everybody is heading towards karvy for their wealth maximization, lets have a
look at the clientele of karvy :
According to the datas published in year 2007, karvy stock broking ltd. Operates through
more than 12000 terminals, more than 290000 accounts are maintained and commands
over 3.14% market share of NSE. The distribution services has access to more than Rs.
40 billion Assets Under Management. Karvy being a depository participant with both
NSDL and CDSL, manages more than 700000 accounts from more than 380 locations.
Talking about the registry services, it manages over 750 public/ right issues.at the same
time, it is managing over 16 million portfolios as registrar.
If we took a look at some of the top corporate houses availing the
services of karvy then we have: Reliance, IOC, IDBI, LIC, Hindustan Unilever, Principal
Mutual Fund, Duetsche Mutual Fund, Yogokawa, Marico Industries, Patni Computers,
Morgan Stanley, Glenmark, CRISIL, 3M, Kotak Mahindra Bank, Bharti Televenture,
Infosys Technologies, Wipro, Infotech, IPCL, TATA consultancy services, UTI mutual
fund etc. Thus in total karvy serves over 16 million investors and 300 corporates.
Now, as the project was carried on in Korba, so there is a special reference to
working of karvy at Korba and mutual funds in particular.

19
(1.2) Scope of Work

The research was carried on in KORBA the Eastern Region of India. It is restricted to
Kolkata so Korba is also comes under Kolkata region. I have visited people randomly
nearby my locality, Industrial units, small retailers etc.

Our scope is to provide knowledge and sells the ICICI RIGHT Fund to people. As it is a
TAX saving fund so it will attract service & Business class people in korba. Our aim is to
invest money of people through this scheme and to gain knowledge how to deal with
customer and to conveyance them. By our conveyance power we made people to invest
in this fund.

Mutual funds serve as a link between the saving people and the capital market in that they
mobilize saving from investors and bring them to borrowers in the capital markets. In
short, it is a common pool of money into which investors place their contribution that is
to be invested in accordance with a stated objective.

A mutual fund uses the money collected from the investors to buy those assets, which are
specially permitted by its stated investment objective. When an investor subscribes to a
mutual fund, he/she buys a part of asset or the pool of funds that are outstanding at that
time.

A mutual fund is constituted as an investment company and an investor buys into the
fund, means he buys the share of the fund and is known as a unit holder. Since each unit
holder is a part of owner of a mutual fund, it is necessary to establish the value of his
part. Since the unit held by an investor evidences the ownership of the fund’s assets, the
value of the total asset 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 called as Net Asset Value
(NAV).

20
 Population of Korba
Service Class
Business Class
Lower Class

Lower Class
30%

Service Class
50%

Business
Class
20%

Investor’s Response to Financial Product

Fixed Deposit,
15%
Insurance
Bond, 5% Share
Mutual Fund
Insurance, 50%
PF, 15% PF
Bond
Mutual Fund,
Fixed Deposit
10%
Share, 5%

21
Reasons of Choosing Above

Returns
Risk
Safety
Tax Benefite
Others

22
(1.3) Objective of Research

i) Academic Objective

Investment goals vary from person to person. While somebody wants security, others
might give more weightage to returns alone. Somebody else might want to plan for his
child’s education while somebody might be saving for the proverbial rainy day or even
life after retirement. With objectives defying any range, it is obvious that the products
required will vary as well. So, Mutual funds can be classified based on the objectives of
the investor.

1.) By Schemes

(a). Equity Fund:

Equity funds invest a major portion of their corpus in equity shares issued by companies.
NAV of equity funds are fluctuated by fluctuation in price of shares that it holds. So there
is a high risk as well as high return in equity fund. Potential to earn in such funds is
higher when they are invested for long term.

The leading example of such funds are

Prudential ICICI Growth Plan,

Tata Pure Equity Fund,
Reliance Vision,
Franklin India Prima Fund etc.

(b). Debt Fund:

Debt funds invest in debt instruments debt instruments issued by governments, private
companies, banks and financial institutions. By investing in debt, these funds target low
risk and stable income investors. These funds are low risk low return funds.

The leading examples are

Birla Income Plus,

Principal Income Fund,
HDFC Income Fund,
UTI Bond Fund etc.

(c). Balanced Fund:

A balanced fund is one that has a portfolio comprising debt instruments as well as
preference and equity shares. The idea is to reduce volatility of funds, while providing
some upside for capital appreciation. They are best suitable for the people looking for a

23
combination for capital appreciation and regular income and best time spend for such
investment is more than 3 years.

The leading examples are

Prudential ICICI Balanced Fund,

Birla Balance Fund,
Franklin India Balance Fund,
Sundaram Balance Fund etc.

(d). Money Market Fund:

Money market funds invest in securities of a short-term nature, which generally means
securities of less than one-year maturity such as Treasury Bills issued by governments,
Certificates of deposit issued by banks and Commercial paper issued by companies.

The major strength of money market funds are the liquidity and safety of principal that
the investors can normally expect from short term investments.
The leading examples are

Prudential ICICI Liquid Plan,

Templeton India Liquid Fund,
Grindlays Cash Fund etc.

(e). Gilt Fund:

These funds are sort of government funds wherein the investments are made in debt
instrument of government, which carry no risk of non payment of interest as the RBI
manages the payment of interest and principal on the investments. These funds are best
suited for regular income and long term investment objectives.

The leading examples are

Prudential ICICI Gilt Fund,

Tata Gilt Securities Fund,
Templton India Government Securities Fund etc.

2. By Duration:

(a). Open-ended Fund:

An open-ended fund is one that is available for subscription and repurchase on a

continuous basis. These schemes do not have a fixed maturity period. Investors can
conveniently buy and sell units at NAV related prices which are declared daily basis. The
key feature of this fund is liquidity.

24
 (b). Close-ended Fund:

A close ended fund has a stipulated maturity period e.g. 5-7 years. The fund is open for
subscription only during a specified period at the time of launch of the scheme. Investors
can invest in the scheme at the time of initial public issue and thereafter they can buy or
sell units on stock exchange where the units are listed at NAV. These mutual fund
schemes disclose NAV generally on weekly basis.

(c). Interval Fund:

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

Risk Return Grid

Risk
Tolerance/Return Focus Suitable Products Benefits offered by MFs
Expected
Bank/ Company FD, Debt Liquidity, Better Post-
Low Debt
based Funds Tax returns
Partially Balanced Funds, Some Liquidity, Better Post-
Debt, Diversified Equity Funds and Tax returns, Better
Medium
Partially some debt Funds, Mix of Management,
Equity shares and Fixed Deposits Diversification
Diversification, Expertise
Capital Market, Equity Funds
in stock picking,
High Equity (Diversified as well as
Liquidity, Tax free
Sector)
dividends

[Risk Return Grid of various MF]

3. By Load:

(a). Load Fund:

Marketing of new mutual fund scheme involves initial expenses. These initial expenses
may be recovered from the investors by entry or exit load.

(i). Entry Load or Front-end Load:

If initial expenses recovered from investors at the time of investor’s entry into the fund,
by deducting a specific amount from his initial contribution it is called Entry Load.

(ii). Exit Load or Back-end Load:

25
 If initial expenses recovered at the time of the investor’s exit from the scheme, by
deducting a specified amount from the redemption proceeds payable to the investor it is
called exit load.

(iii). Deferred Load:

The load amount charged to the scheme over a period of time is called a deferred load.

(b). No Load Fund:

Funds that don’t charge entry, exit, or deferred load or any other charges for sales
expenses are called no load funds.

• Now, generally all Mutual Fund companies charge 2 to 2.5% entry

load on equity fund.

• Generally there is no exit load on equity and sectoral funds to

maintain liquidity of those funds.

• Generally there is no entry load on gilt scheme and income fund.

• There is 0.25 to 1% exit load on gilt and income fund if investors

exit from fund before specified time which is generally 3 to 6 months.

4. Other types of fund:

(a). Tax Saving Funds:

These schemes offer tax rebates to the investors under specific provisions of the Income
Tax Act, 1961 as the Government offers tax incentives for investment in specified
avenues. E.g. Equity Linked Saving Scheme (ELSS). Pension schemes also offer tax
benefits.

The leading examples are

Prudential ICICI Tax Plan,

Templeton India Pension Plan,
Franklin India Tax shield etc.

26
 (b). Index Funds:

Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index,
S&P NSE 50 index (Nifty), etc. These schemes invest in the securities in the same
weightage comprising of an index. NAV of such funds are changed accordance with the
change in the index.

The leading examples are

Birla Index Fund,

HDFC Index Fund,
Prudential ICICI Index Fund,
UTI Index Fund etc.

(C). Sector Funds:

These are the funds which invest in the securities of only those sectors or industries as
specified in the offer documents. E.g. Pharmaceuticals, Software, Petroleum etc. These
types of funds are more risky compared to diversified funds.

The leading examples are

Birla IT Fund,
Pru. ICICI FMCG Fund,
Franklin India Pharma Fund etc.

(d). Commodity Funds:

Commodity funds invest into the different commodities directly or through shares of
commodity companies. E.g. Commodity fund invest in gold or shares of gold mines.
Commodity funds have not yet developed in India.

(e). Off Shore Funds:

These funds invest in equities in one or more foreign countries there by achieving
diversification across the country’s borders. However they also have additional risks such
as the foreign exchange rate risk and their performance depends on the economic
conditions of the countries they invest in.

27
 ii) Research Objective

Any activity done without an objective in a mind cannot turn fruitful. An objective
provides a specific direction to an activity. Objectives may range from very general to
very specific, but they should be clear enough to point out with reasonable accuracy what
researcher wants to achieve through the study and how it will be helpful to the decision
maker in solving the problem.

The objective of any research is basically divided into two categories.

Primary Objective:

Following are the primary objective:

 The main objective of this project is concerned with getting the opinion of people
regarding mutual funds and what they feel about availing the services of financial
advisors.
 I have tried to explore the general opinion about mutual funds. It also covers why/
why not investors are availing the services of financial advisors.
 Along with it a brief introduction to India’s largest financial intermediary,
KARVY has been given and it is shown that how they operate in mutual fund
deptt

Secondary Objectives:

Following are secondary objectives.

• To assess an awareness of mutual funds in Korba City.

• To find out level of awareness of mutual funds in Korba City.
• To find out how many investment advisors are interested in dealing
of mutual fund.
• To find out how many investment advisors are willing to work
with Karvy.

28
 Market Potential of Karvy in
Korba

Existing
Unknown about Customer
Karvy 35% 25%

People( Aware
of Karvy
Other
than Existing
)
Customer 40%

29
 (1.4) RESEARCH METHODS / TOOLS USED

I had used methods to consult people through Seminar, Meeting, Door to Door meeting,
friend’s circle. I undertaken meeting of about 8 people and consulted about 45 people
during my training.

1. Research Design:

A research design is a pattern or an outline of a research project’s working. It is a

statement of only the essential elements of a study, those that provide the basic guidelines
for the details of the project. It comprises a series of prior decision that taken together
provide master plans for executing a research projects.

A research design serves as a bridge between what has been established i.e., the research
objectives and what is to be done, in conduct of the study to relish those objectives. If
there were no research design, the research would have only foggy notions as about what
is to be done.

2. Unit of Analysis:

Mutual Fund Client’s.

Characteristics of interest:

• Client’s knowledge about Mutual Fund

• Client’s knowledge about Karvy
• Client’s interest in getting knowledge of Mutual Fund
• Client’s willingness to deal in Mutual Fund with Karvy
• Client’s preference in selecting tax saving instrument of
investment

30
3. Sources of Data:

a) Primary Source:

The primary data is collected using sampling method and by survey using questionnaire.

b) Secondary Source:

Secondary data includes information regarding present market scenario, Information

regarding Mutual Funds and competitors are collected by Internet, Magazines and News
papers and books.

4. Sample Planning:

Sample Size: 50 units

Sample Extent: Korba City

Sampling Design:

A Sample Design is a definite plan for obtaining a sample from a given population. It
refers to the technique or method the researcher would adopt in selecting items for the
sample.

5. Data Collection Method:

I have used ‘Survey Method’ to collect data. I have collected data using questionnaire.

Questionnaire Plan

I have used ‘Structured Questionnaire’ for gathering the required data through
contacting respondent personally.
Type of Information:

I have collected Fact, Awareness, Attitude, Future action plan and reason using
questionnaire.

Type of Questions:

‘Multiple Choice’ type are asked in the questionnaire for data collection.

6. Data Analysis & Interpretation:

Data Analysis is based on the data collected by way of Questionnaires. From the
collected data findings are extracted. The data is tabulated and frequency distribution
chart is prepared.

31
(1.5) Results (Tabular / Pictorial representation i.e. graphs, charts etc.)

Rate reason for choosing particular dealer.

Mutual Fund Advisors'

Suggestion

Shares
Mutual Fund
Insurance
FD
Tax Bond
PPF

[Mutual Fund Advisors’ Suggestions]

Reasons of Choosing Above

Returns
Risk
Safety
Tax Benefite
Others

[Reasons of Choosing Above]

32
 60% 55%
50%
40%
30%
20%
14% 14%
11%
10% 5%
1%
0%

ELSS
Insurance

PPF

Bond
Pension
NSC

Plan
Inve stme nt Options

[Service Class Investment]

60%
60%
50%
40% 40%

30%
20%
10%
0%
Interested Not
Interested

[Clients who are interested in dealing of Mutual Funds]

33
80%
70%

60%

40%
30%

20%

0%
Know Don't KNOW

[Client know about MF services provided by Karvy]

70% 66%
60%
50%
40% 34%
30%
20%
10%
0%
Interested Not
Interested

[Client who are interested to know about MF]

60%
54%
50% 46%

40%

30%

20%

10%
Interested Not Inteested

[Clients who are interested to invest with KARVY]

34
60%
52%
50%
40%
30%
22%
20%
11%
10% 5%
0%
Not No time Lack of Don't want to
Answered Knowledge expand
services

[Reasons for not interested in KARVY]

35
(1.6) Analysis and Discussions of results

• At the survey conducted upon 50 people, 40% are already mutual fund investors
or are interested to invest in future and the remaining 60% are not interested in it.
So there is enough scope for the advisors to convert those 65 participants into
investors through their convincing power and great communication skills.

• The awareness level about Mutual Funds is quite low in the Korba City among
client.

• Approximately 40% of Clients are aware of and interested in dealing of Mutual

Funds. The reason for not interested in dealing of Mutual Fund is unawareness
about Mutual Fund and risk.

• When asked about the most alluring feature of MFs, most of them opted for
diversification, followed by reduction in risk, helps in achieving long term goals
and helps in achieving long term goals respectively.

• Only 30% investment people are aware of MF services provided by Karvy, so we

can say that awareness level about MF services of Karvy is very low in Korba.

• Most of people are interested to know about Mutual Funds and interested to know
about Mutual Funds arranged by Karvy.

• Only 46% of clients are interested to invest in Karvy. Most of clients don’t want
to invest with MF because they have no money for expanding their investment
and they want a safe investment for long & future return.

• Most of people invest in insurance to save tax followed by PPF. Insurance is

widely used as tax-saving instrument.

• When asked about one reason for not availing the services of financial advisors,
about 23 of them pointed the advisors as expensive. 13 of them wished to be in
control of their own assets.9 of them said that they find it difficult to get
trustworthy advisors. Whereas 5 of them said they have access to all the necessary
resources required.

• Most of participants regarded asset allocation as the major reason for going for
(Karvy) financial advisors. 25% of them needed them to explain them the various
investment options available. 20% of them wanted to make sure that they were
saving enough to meet their financial goals. While just gave the reason- lack of
time.
• Most of the investor preferred to invest at a young unmarried stage. Even 32%
persons were ready to invest at a stage of young married with children but people
with older children avoid investing due to increased expenses. But again the
percentage rose to 27% at pre-retirement stage.

36
(1.7) Recommendations / Suggestions

There is high potential market for Mutual Fund Investors in korba city, but this market
needs to be explored as investors are still hesitated to invest their money in Mutual
Funds.

The most vital problem spotted is of ignorance. Investors should be made aware of the
benefits. Nobody will invest until and unless he is fully convinced. Investors should be
made to realize that ignorance is no longer bliss and what they are losing by not
investing.

In korba most of the people lack knowledge about Karvy. So Karvy have to explore his
Brand name through various Advertisement (Hoardings, Relationship Executives, and
Media etc.) and Promotions.

Proper Training and up to date knowledge of every financial product should be given to
every employee of Karvy so that then can give there best performance to the clients.

In korba investors have inadequate knowledge about Mutual Funds, So proper Marketing
of various schemes is required, company should arranges more and more seminars on
Mutual Funds.

Awareness of MF services provided by Karvy is also very low so company needs proper
marketing of their all services by advertising, distribution of pamphlet, arranging
seminars etc.

Most of marketing executive are not interested in dealing of Mutual Funds because they
don’t want to expand their services due to lack of time, so company should provide them
knowledge about single window services by which investor can get all financial services
from one place.

Company should also provide knowledge about the growth rate and the expected growth
rate of Mutual Fund industry in India. Most of people aware of life insurance, NSC and
PPF for tax saving so, company should market various tax saving schemes of Mutual
Funds and their benefits.

The interface among the investors and the Mutual Fund Companies is the agents, so the
agents should have proper knowledge about Mutual Funds as well as market so that they
can help investors in their investment decisions. The quality of agents performance and
investors trust on them can be improved only if they are permanent in nature.

Mutual funds offer a lot of benefit, which no other single option could offer. But most of
the people are not even aware of what actually a mutual fund is? They only see it as just
another investment option. So the advisors should try to change their mindsets. The
advisors should target for more and more young investors. Young investors as well as
persons at the height of their career would like to go for advisors due to lack of expertise
and time.

37
(1.8) Limitations of Study

• Due to limitation of time and cost constrains a sample size of only 50 respondents
are chosen.

• Data Analysis and interpretation done may not be that strong due to small sample
and conveyance skill in me.

• The sample extent for research is only korba City.

• Some of the respondents may be biased in giving responses.

• My inexperience in research area might have affected results.

38
 1.9 Conclusions

• Executive should give emphasis on mutual funds than other investment options.

• Mutual Funds have given a new direction to the flow of personal saving and
enable small and medium investors in remote rural and semi urban areas to reap
the benefits of the stock market investment. Indian Mutual Funds are thus playing
a very important developmental role in allocation of scares resources in the
emerging economy.

• Karvy is not able to provide sufficient services to the investors due to

unawareness among customers regarding services, so Karvy need to train his
employee & executives to upgrade their performance.

• The awareness level of investor is low in advisors are interested in dealing in

mutual fund.

• Very less people know about services provided by Karvy.

• Very less people were aware about Karvy, so need to promote their brand name in
korba.

• To increase employee strength (mainly of marketing executive & advisors) to

tackle the customer query.

39
Questionnaire used for Research Objective:

 Have you invested /are you interested to invest in mutual funds?

Yes [ ] No [ ]

 . What is the most important reason for not investing in mutual funds?

Lack of knowledge about mutual funds [ ]

Enjoys investing in other options [ ]
Its benefits are not enough to drive you for investment [ ]
No trust over the Mutual fund [ ]

 . Where do you find yourself as a mutual fund investor?

Totally ignorant [ ]
Partial knowledge of mutual funds [ ]
Aware only of any specific scheme in which you invested [ ]
Fully aware [ ]

 As a middle/High class investor which type of investment would you

prefer?
Middle Class [ ] High Income Class [ ]

Share Market [ ]
Mutual Fund [ ]
Insurance [ ]
Fixed Deposite [ ]

 . Where from you purchase mutual funds?

Directly from the AMCs [ ]

Brokers only [ ]
Brokers/ sub-brokers [ ]
Other sources [ ]
 . Which feature of the mutual funds allures you most?

Diversification [ ]
Professional management [ ]
Reduction in risk and transaction cost [ ]
Helps in achieving long term goals [ ]

40
 . According to you, which is the most suitable stage to invest in mutual
funds?
Young unmarried stage [ ]
Young Married with children stage [ ]
Married with older children stage [ ]
Pre-retirement stage [ ]

 . Are you availing the services of personal financial advisors?

YES [ ] NO [ ]

 . Which expertise of the personal financial advisor is demanded most?

Portfolio review & investment recommendation [ ]

Planning to achieve specific financial goals [ ]
Managing assets in retirement [ ]
Access to specialist in areas such as tax planning [ ]

 . What is the major reason for using financial advisors?

Want help with asset allocation [ ]

Don’t have time to make my own investment decision [ ]
To explain various investment options [ ]
Want to make sure I am investing enough to meet my financial goals [ ]

 . What is the major reason for not using financial advisor?

Have access to all resources needed to invest on own [ ]

Believe advisors are too expensive [ ]
Unsure how to find a trustworthy advisor [ ]
Want to be in control of own investment [ ]

41
2. Main Text for Department Based on the Job Training

2.1 Introduction of Company.

a) Brief History of Company establishment.

Karvy Consultants Limited was established in 1982 at Hydrabad. It was established by a

group of Hydrabad-based practicing Chartered Accountants. At initial stage it was very
small in size. It was started with a capital of Rs. 1,50,000.

In starting it was only offering auditing and taxation services. Later, it acts into the
Registrar and Share transfer activities and subsequently into financial services and other
services like Financial Product Distribution, Investment Advisory Services, Demat
Services, Corporate Finance, and Insurance etc.

All along, Karvy’s strong work ethics and professional background leveraged with
Information Technology enabled it to deliver quality to the individual. A decade of
commitment, professional integrity and vision helped Karvy achieving a leadership
position in its field when it handled largest number of corporate and retail that proved to
be a sound business synergy.

Today, Karvy has access to millions of Indian shareholders, besides companies, banks,
financial institutions and regulatory agencies. Over the past one and half decades, Karvy
has evolved as a veritable link between industry, finance and people.

In January 1998, Karvy became first Depository Participant in Andhra Pradesh. An ISO
9002 Company, Karvy’s commitment to quality and retail reach has made it an Integrated
Financial Services Company.

Today, company has 230 branch offices in 164 cities all over the India. The company
adds 5 new offices every month to the company’s ever growing national network in every
nook and corner of the country. The company service over 16 million individual
investors, 180 corporate and handle corporate disbursements that exceed Rs.2500 Crores.

KARVY is a legendary name in financial services, its mission to succeed, passion for
professionalism, excellent work ethics and customer centric values, defines Karvy’s
credit.

Today KARVY is well known as a premier financial services enterprise, offering a broad
spectrum of customized services to its clients, both corporate and retail. Services that
KARVY constantly upgrade and improve are because of company’s skill in leveraging
technology. Being one of the most techno-savvy organizations around helps company to
deliver even more cost effective financial solutions in the shortest possible time.

42
What bears ample testimony to Karvy’s success is the faith reposed in company by
valued investors and customers, all across the country. Indeed, with Karvy’s wide
network touching every corner of the country, even the most remote investor can easily
access Karvy’s services and benefit from company’s expert advice.

KARVY GROUP

Karvy Consultants Limited

Karvy Securities Limited

Karvy Investor Services Limited

Karvy Stock broking Limited

Karvy Computer Shares Pvt. Ltd.

Board of Directors

Karvy Consultants Limited

Parthasarathy C
Yugandhar M
Ramakrishna M S
Prasad V Potluri
Robert Gibson
Sanjay Kumar Dhir
R Shyamsunder

[Table1: BODs of Karvy Consultants Limited]

Karvy Investor Services Limited

Parthasarathy C
Yugandhar M
Ramakrishna M S

[Table2: BODs of Karvy Investor Services Limited]

43
Karvy Securities Limited

Parthasarathy C
Yugandhar M
Ramakrishna M S
Ajay Kumar K
William Samuel
Nicholas Tully

[Table3: BODs of Karvy Securities Limited]

Karvy Stock Broking Limited

Parthasarathy C
Yugandhar M
Ramakrishna M S
Ajay Kumar K
Kutumba Rao V
William Samuel
Nicholas Tully

[Table4: BODs of Karvy Stock Broking Limited]

44
 b) Organizational Chart.

NATIONAL LEVEL ORGANIZATION CHART

CM & MD
(Hyderabad)

GM GM GM
(Marketing) (Finance) (HRM)

Regional Manager
(Kolkata)

Zonal Manager
(Raipur)

Branch Mgr. Branch Mgr. Branch Mgr.

(Korba) (NTPC, Korba) (Ambikapur)

Sr. Executives Accountant

Executives

45
c) Major Achievements of Karvy:

• Largest mobilizer of funds as per PRIME DATABASE

• First ISO - 9002 Certified Registrar in India

• A Category- I Merchant banker

• A Category- I Registrar to Public Issues

• Ranked as "The Most Admired Registrar” by MARG

• Handled the largest- ever Public Issue - IDBI

• Strategic tie-up with Jardine Fleming India Securities Ltd

• Handled over 500 Public issues as Registrars

• Handling the Reliance Account which accounts for nearly 10 million

account holders

• First Depository Participant from Andhra Pradesh

d) SWOT Analysis.

Strengths:

• Employees are highly empowered.

• Strong Communication Network.
• Good co-operation between employees.
• Number 1 Registrar and Transfer agent in India.
• Number 1 dealer of Investment Products in India.

Weaknesses:

46
 • High Employee Turnover.

Opportunity:

• Growth rate of mutual fund industry is 40 to 50% during last year and
it expected that this rate would be maintained in future also.
• Marketing at rural and semi-urban areas.

Threats:

• Increasing number of local players.

• Past image of Mutual Fund.

e) 4P Analysis.

Product:

Karvy provides share Trading, Mutual fund & Insurance

services in korba. Karvy’s main business is in dealing with Share Trading.
Karvy is the registrar of many companies.
Price:

In Korba area in provides the services of trading in very less

cost in comparison to other advisory Units. There are no other charges in
Mutual Funds & Insurance except Entry & Exit load that is fixed by
Company itself.

Place:

Korba is an industrial area and people of this area were

educated & are very secure about there future. Karvy get an advantage of to
provide there financial services to the people of this area and through there
Marketing services Karvy targets many people as there customer. In korba
area there is having many competitor of Karvy, but due to its brand name
and services people attract towards it.

47
 Promotion:

The objective of advertising of Karvy is to create awareness about

services of Karvy among investors and sub-brokers and increases sub-
brokers of Karvy.

Company doesn’t give advertisement in media like TV, Newspapers, and

Magazines etc. The companies’ associate with it makes Karvy’s
advertisement indirectly. Karvy is R & T agent of around 700 companies.
They publish name, address and logo of Karvy on their annual report.

Karvy also publish its weekly Stock Market Newsletter ‘Karvy Bazaar
Baatein’ and monthly magazine ‘The Finapolis’ to guide investors and sub-
brokers about market.

f) Competitor’s Analysis.

1) ICICI Securities Ltd.

ICICI Securities Limited (i-SEC) is a wholly owned investment-banking

subsidiary of ICICI Limited. ICICI is the only non-Japanese Asian
financial institution to be listed on the New York Stock Exchange (NYSE).
ICICI Securities was formed on 22nd Feb. 1993, when ICICI's Merchant
Banking Division was spun off into a new company, ICICI Securities today
is India's leading Investment Bank and one of the most significant players in
the Indian capital markets.

ICICI Brokerage Services Limited (IBSL) set up in March 1995; IBSL is a

100% subsidiary of i-SEC. It commenced its securities brokerage activities
in February 1996 and is registered with the National Stock Exchange of
India Limited and The Stock Exchange, Mumbai.

ICICI has started a website ICICIdirect.com which is the most

comprehensive website, which allows you to invest in Shares, Mutual funds,
Derivatives (Futures and Options) and other financial products.

ICICI has a large network of branches all over India.

48
 Services offered:
• Merchant Banking
• Demat Service
• Stock Broking

In Korba ICICI is the main competitor of Karvy, due to its Brand image and
low cost ICICI attracted most of the customer in less time.

2) HDFC Ltd

HDFC is the leading financial company in India. IT has large network of

branches all over India. HDFC Securities, which is fully subsidiary of
HDFC, provides Demat service.

HDFC and its subsidiary provides following services.

• Demat Service
• Life Insurance
• Banking Service
• Housing Finance
• Vehicle Finance
• Education Loan
• Personal Loan
• Mutual Fund

3) India InfoLine

India infoLine is financial advisory unit dealing with the entire financial
product (insurance, MF’s, Stock Trading). But market share of India
Infoline in korba is very low.

4) Share Khan

It is also a financial service unit but as a franchisee in korba area started

in 2007 and only dealing in Stock Market.

5) Other Retail Banking Units

49
Other retail banking units also deals with Mutual Funds. But they do not
highlight & provide their service.

2.2 Introduction of the concerned department

d. Hierarchy

Branch Mgr.
(Korba)

Sr. Executives Accountant

Executives

e. Description of the various responsibilities/ duty assigned

My Responsiblity is to provide knowledge and sells the ICICI

RIGHT Fund to people. As it is a TAX saving fund so it will attract
service & Business class people in korba. Our aim is to invest money
of people through this scheme and to gain knowledge how to deal
with customer and to conveyance them. By my conveyance power I
made many people to invest in this fund.

Every day I had to report Executive (marketing) of Karvy,

korba. I had to provide daily performance report of my sales (of ICICI
RIGHT FUND).

f. Description of working

Daily I have to consult people for selling the MF’s Product.

Daily at morning I have to report the officer of Karvy for daily sales
report discussion. Daily I have to consult minimum 8-10 Customer for
advising them to invest in (ICICI RIGHT FUND) Mutual Funds. As
ICICI RIGHT FUND is tax saving equity fund so my main target are
service class & business class people who had good income and

50
 comes under Income Tax Regulation. I have to assist those customers
to invest in ICICI RIGHT FUND for availing TAX benefit.

2.3 Scope of the Project

The research was carried on in KORBA the Eastern Region of India. It is

restricted to Kolkata so Korba is also comes under Kolkata region. I have
visited people randomly nearby my locality, Big & Small Industrial units,
small retailers etc.

My Work is to provide knowledge and sells the ICICI RIGHT Fund to

people. As it is a TAX saving fund so it will attract service & Business class
people in korba. Our aim is to invest money of people through this scheme
and to gain knowledge how to deal with customer and to conveyance them.
By our conveyance power we made people to invest in this fund.

The Scope of Project is to analyze the market of mutual fund in korba,

market share of Karvy Financial Services and the customer response to the
product (ICICI RIGHT FUND) NFO of ICICI. By different research tools &
methods I have analyze the market of mutual fund in korba. And I have to
analyze how many customers want to deal with Karvy and if not interested
what is the reason behind it. My responsibility is to conveyance people to
invest in ICICI RIGHT FUND and to get knowledge of financial product &
services. And also I got knowledge about internal working of funds, where
it invested and how return comes from those investments & how return
calculated.

51
 2.4 Objective of Project

c. Academic Objective

My main objective is the marketing of Mutual Fund of ICICI RIGHT

FUND as NFO of ICICI ltd. It is a Tax saving equity fund of ICICI
whose main aim is to provide Tax reduction & good return. It has free
entry load and 1% exit load upto Rs. 5crore and .5% for Rs. 5Crore
and above. The minimum amount to invest is Rupees 500.00 (Five
Hundred Only) and above. Customer should give the bank details;
address proof and PAN card (photo copy) for ID proof. The allocated
fund was invested in equity market and return is generated from stock
market according the market condition and Fund performance.

d. Research Objective

My scope is to provide knowledge and sells the ICICI RIGHT Fund to

people. As it is a TAX saving fund so it will attract service &
Business class people in korba. Our aim is to invest money of people
through this scheme and to gain knowledge how to deal with customer
and to conveyance them. By our conveyance power we made people
to invest in this fund.

The Scope of Project is to analyze the market of mutual fund in korba,

market share of Karvy Financial Services and the customer response
to the product (ICICI RIGHT FUND) NFO of ICICI. By different
research tools & methods I have analyze the market of mutual fund in
korba. And I have to analyze how many customer want to deal with
Karvy and if not interested what is the reason behind it. My
responsibility is to conveyance people to invest in ICICI RIGHT
FUND and to get knowledge of financial product & services. And
also I got knowledge about internal working of funds, where it
invested and how return comes from those investments & how return
calculated.

52
2.5 Description of work assigned during training

My Work is to provide knowledge and sells the ICICI RIGHT Fund to

people. As it is a TAX saving fund so it will attract service & Business
class people in korba. My aim is to invest money of people through this
scheme and to gain knowledge how to deal with customer and to
conveyance them. By our conveyance power we made people to invest
in this fund. And daily I have to give daily sales performance report
about sale of ICICI RIGHT FUND. Apart from ICICI RIGHT FUND I
had made many people to invest in other funds also like HDFC top 200,
Franklin prima plus, ICICI Focus fund etc. I was asked to get the query
of customer about mutual fund, ICICI RIGHT FUND, Karvy services
and get the market conditions. As 2008-2009 is going through recession
the market response is very low to mutual fund products so I have to
analyze the customer responses regarding investments.

53
 2.6 Learning involved during summer training

Firstly I got knowledge about financial products (stock trading, Mutual

Fund, Insurance etc.). Though my training is in mutual fund products so I
had to deal in mutual fund products of various companies & banks.

During my training I had learned the working of mutual fund, how the
allocated fund is used or invested in share market and extract good return
from it.

Though there is risk in mutual fund as the return is not fix or is not
determined earlier, it is possible that the amount invested by customer
should be decrease its value in future according to market condition.
Even after I had learned how to conveyance the customer to invest the
amount by making them sure that the fund/scheme will do better
performance & give a good return.

And I had also increased my communication skill because it is must for

any marketing personnel to communicate with their customer. I had also
learned the official/internal working of Karvy ltd of Korba branch.

54
 2.7 Suggestions/ Recommendations:

• The most vital problem spotted is of ignorance. Investors should be

made aware of the benefits. Nobody will invest until and unless he is
fully convinced. Investors should be made to realize that ignorance is
no longer bliss and what they are losing by not investing.
• Mutual funds offer a lot of benefit, which no other single option could
offer. But most of the people are not even aware of what actually a
mutual fund is? They only see it as just another investment option. So
the advisors should try to change their mindsets. The advisors should
target for more and more young investors. Young investors as well as
persons at the height of their career would like to go for advisors due
to lack of expertise and time.
• Karvy may try to highlight some of the value added benefits of MF’s
such as tax benefit, rupee cost averaging, and systematic transfer plan,
rebalancing etc. these benefits are not offered by other options single-
handedly. So these are enough to drive the investors towards mutual
funds. Investors could also try to increase the spectrum of services
offered.
• Now the most important reason for not availing the services of
advisors was spotted was being expensive. The advisors should try to
charge a nominal fee at the beginning. But if not possible then they
could go for offering more services and benefits at the existing rate.
They should also maintain their decency and follow the code of ethics
so that the investors could trust upon them. Thus the advisors should

55
 try to attract more and more persons and turn them into investors and
finally their clients.

2.8 Conclusion:

• Executive should give emphasis on mutual funds than other

investment options.

• Mutual Funds have given a new direction to the flow of personal

saving and enable small and medium investors in remote rural and
semi urban areas to reap the benefits of the stock market investment.
Indian Mutual Funds are thus playing a very important developmental
role in allocation of scares resources in the emerging economy.

• The awareness level of investor is low in advisors are interested in

dealing in mutual fund.

• Very less people know about services provided by Karvy.

56
 Bibliography:

Websites:
www.the-finapolis.com
www.karvy.com
www.mutualfundsindia.com
www.valueresearchonline.com
www.moneycontrol.com
www.morningstar.com
www.yahoofinance.com
www.theeconomictimes.com
www.rediffmoney.com
www.bseindia.com
www.nseindia.com
www.investopedia.com

Journals & other references:

Karvy –the finapolis
The Economic Times
Business Standard
Fact sheet and statements of various fund
houses.

57