TABLE OF CONTENT

SR.NO CHAPTER NAME PAGE NO.

1. Company Profile 7-23

2. Introduction to Project (Mutual Funds) 24-47

3. Objectives of the Study 48-49

4. Research Methodology 50-52

5. 53-63
Data Analysis & Interpretation

6. 64-65
Findings of the study

7. Limitation of study 66-67

8. Recommendations and conclusion 68-70

(bibliography)

9. Appendix A Questionnaire 71-72

 CHAPTER- 1
INTRODUCTION

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 INTRODUTION TO INDUSTRY

1.1 COMPANY PROFILE

Karvy Consultants Limited was established in 1982 at Hyderabad. It was established by a
group of Hyderabad-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, 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 sevices 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.

WHERE KARVY STAND IN THE MARKET?

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

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

3
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.
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 EARLY DAYS:

Karvy the name comes from the names of the directors:

K-Mr. Krishna Prasad

A-Mr. Arun
R- Mr. Radha Krishna
V- Mr. Vanknt Krishna
Y- Mr. Yogender

ORGANISATION
Karvy was started by a group of five charted accountants in 1979. The partners decided to
offer, other than the audit services, value added services like, corporate advisory services to
their clients. The first firm in the group Karvy consultants limited was incorporated on 23rd
July, 1983. In a very short period, it became the largest Register and Transfer agent in India.
The business was spun off to form a separate joint venture with computer share of Australia,
in 2005. Karvy’s foray into stock broking began with marketing IPO’s, in 1993. Within a few
years, karvy began topping the IPO procurement league tables and it has consistently
maintained its position among the top 5. Karvy was among the few member of National
Stock Exchange, Mumbai in 2001. Dematerialization of shares gathered pace in mid-90s and
Karvy was in the forefront educating investors on the advantage of dematerialization their
shares. Today Karvy is among the top 5 Depositary participation in India.

While the registry business is a 50:50 Joint Venture with Computer share of Australia, we
have equity participation by ICICI Venture Limited and Barings Asia Limited, in Karvy
Stock Broking Limited.

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 Karvy has always believed in adding value to services it offers to clients. A top-notch
research team based in Mumbai and Hyderabad supports its employees to advise clients on
their investments needs. With the information overload today, Karvy’s team of analysts help
investor make the right calls, be it equities, mf, insurance.

On a typical working day Karvy:-

Has more than 25,000 investors visiting our 575 offices.

Publishes/broadcasts at least 50 buy/sell calls.

Attends to 10,000 telephone calls.

Mails 25,000 envelopes, containing Annual Reports, divided
cheques/advises/allotments/refund advises.

Executes 150,000 trades on NSE/BSE.

Executes 50,000 debit/ credit in the depository accounts.

Advises 3,000 clients on the investment in mutual funds.

KARVY GROUP

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KARVY STOCK BROKING LIMITED:
Karvy Stock Broking Limited, one of the cornerstones of the KARVY edifice, flows freely
towards attaining diverse goals of the customer through varied services. It creates a plethora
of opportunities for the customer by opening up investment vistas backed by research-based
advisory services. Here, growth knows no limits and success recognizes no boundaries.
Helping the customer create waves in his portfolio and empowering the investor completely
is the ultimate goal.

Karvy Stock Broking Limited is a member of:

National Stock exchange (NSE)
Bombay stock exchange (BSE)
Hyderabad Stock Exchange (HSE)

KARVY STOCK BROKING LIMITED:

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KARVY INVESOR SEVICES LIMITED:

Deepening of the Financial Markets and an ever-increasing sophistication in corporate

transactions, has made the role of Investment Bankers indispensable to organizations seeking
professional expertise and counseling, in raising financial resources through capital market
apart from Capital and Corporate Restructuring, Mergers & Acquisitions, Project Advisory
and the entire gamut of Financial Market activities.
Karvy Investor Services Limited (‘KISL’), a SEBI registered Merchant Banker has emerged
as a leading Investment Banking entity in the country with over a decade of experience. KISL
has built its reputation by capitalizing on its qualified professionals, who have successfully
executed a large number of complex and unique transactions.
Our quality professional team and our work-oriented dedication have propelled us to offer
value-added corporate financial services and act as a professional navigator for long term
growth of our clients, who include leading corporate, State Governments, Foreign
Institutional Investors, public and private sector companies and banks, in Indian and global
markets. We have also emerged as a trailblazer in the arena of relationships, both at the
customer and trade levels because of our unshakable integrity, seamless service and
innovative solutions that are tuned to meet varied needs. Our team of committed industry
specialists, having extensive experience in capital markets, further nurtures this relationship.
Credentials

• Emerging as a leading Investment Banker with a strong support from its Group entities in
Research, Stock Broking, Institutional Sales and Retail Distribution.
• Strong team of more than 25 qualified professionals operating from six cities; Hyderabad,
Mumbai, Delhi, Kolkata, Chennai, and Bangalore apart from two overseas offices at New
York (USA) and Dubai.
• One of the largest retail distribution networks with over 584 branches in over 389
cities/towns.
• Excellent Institutional Sales

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KARVY INVESTORS SEVICES LIMITED:

KARVY COMPUTER SHARES PRIVATE LIMITED:

Karvy Computershare Private Limited is a joint venture between Computershare, Australia
and Karvy Consultants Limited, India in the registry management services industry.
Computershare, Australia is the world’s largest and only global share registry providing
financial market services and technology to the global securities industry.

KARVY DATA BASE MANAGEMENT SERVICES LIMITED:

KDMSL is emerging as a leading service provider in the areas of E-governance processing,
insurance back office processing, record keeping, back office for BFSI clientele and is in
pursuit to establish credentials in the areas of Telecom processing, Data management
requirements of large corporate. KDMSL is striving to achieve leadership position by tapping

8
the Indian retail sector boom, through a combination of our extensive branch network and
proprietary IT backbone. Needless to say, KDMSL is run as an independent outfit with
seasoned professionals on board, who have decades of expertise in the industry. KDMSL is a
fully owned subsidiary of Karvy Stock Broking Limited (KSBL), incorporated in April 2008
and is head quartered at Hyderabad.

BOARD OF DIRECTOR:

MISSION STATEMENT OF THE KARVY

An organization exists to accomplish something or achieve something. The mission statement
indicates what an organization wants to achieve. The mission statement may be changed
periodically to take advantage of new opportunities or respond to new market conditions.
Karvy’s mission statement is “To Bring Industry, Finance and People together.”

9
Karvy is work as intermediary between industry and people. Karvy work as investment
advisor and helps people to invest their money same way Karvy helps industry in achieving
finance from people by issuing shares, debentures, bonds, mutual funds, fixed deposits etc.
Company’s mission statement is clear and thoughtful which guide geographically dispersed
employees to work independently yet collectively towards achieving the organization’s goals.

VISION OF KARVY
Company’s vision is crystal clear and mind frame very directed. “To be pioneering financial
services company. And continue to grow at a healthy pace, year after year, decade after
decade.” Company’s foray into IT-enabled services and internet business has provided an
opportunity to explore new frontiers and business solutions. To build a corporate that sets
benchmarks for others to follow

ACCOMPLISHMENTS
• Serving every 20th citizen of India.
• Among the top 5 stock brokers in India (4% of NSE volumes)
• India’s No. 1 Registrar & securities Transfer Agents.
• ISO 9001:2000 Certified operations by DNV.
• Among top 10 investments bankers.
• Largest Distribution of Financial products.

DEVELOPMENT ACTIVITIES
Karvy has sought to broaden the scope of its activities by examining all sectors of the
economy and by introduction new concepts, new instruments and in some cases new
institution to response to perceived needs. In this regards, Karvy developmental activities
have encompassed such diverse areas as financial investment, insurance, depository
participant’s services, skill development activities etc. It has also been a pioneer in setting up
PAN, TAN services and also setting up specialized institution in certain key sections:

• TIN facilitation centre.

• Stock broking centre.
• Financial centre.

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 • Banking centre.
• Registrar of the issues.

KARVY SERVICES – AN OVERVIEW

1. Stock Broking
2. Demat Services
3. Investment Product Distribution
4. Investment Advisory Services
5. Mutual funds services
6. IT Enabled Services

1. STOCK BROKING:
KARVY is working as Capital Market Intermediaries. Stockbrokers are regulated by SEBI
[Stock-brokers and Sub-brokers] Regulations, 1992. The stockbroker is a member of the
stock exchange. Stockbrokers are the intermediaries who are allowed to trade in securities on
the exchange of which they are members. They buy and sell on their own behalf as well as on
behalf of their clients.
Stockbrokers expand their business by engaging sub-broker. Sub-brokers mean “any person
not being a member of a stock exchange who acts on behalf of a stock broker as an agent or
otherwise for assisting the investors in buying, selling or dealing in securities through such
stock-brokers.”
2. DEMATE SERVICES:
Karvy is a depository participant with the National Securities Depository Limited (NSDL) for
trading and settlement of dematerialized shares.
Depository Participants (DPs) are described as an agent of the depository. They are
intermediaries between the depository and the investors. The relationship between the DPs
and the depository is governed by an agreement made between the two under Depositories
Act.
A DP can offer depository-related services only after obtaining a certificate of registration
from SEBI.

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Since Karvy is also in the broking business, investors who use Karvy’s depository services
get a dual benefit. They can use Karvy’s brokerage services to execute transactions and
Karvy’s depository services to settle them.

3. INVESTMENT PRODUCT DISTRIBUTION:

Company is also concern with the distribution of investment products like
(a). Fixed Deposit
(b). IPO
(c) Bond
(A). FIXED DEPOSIT:
KARVY is dealer of 34 fixed deposits of various types which includes fixed deposits of
Public Sector, Non Banking Finance Companies, Housing Finance Companies and
Manufacturing Companies.

(B). IPO (Initial Public Offer):

Company is also provides services related to Initial Public Offer of company. Company
provides stationary at the time of IPO as well as provides information to investors regarding
IPO and solves their queries.

(c) BOND:
A bond is a debt security, in the authorized issuer owes the holders a debt and is obliged to
repay the principal and interest at a later date, termed maturity. Bonds and stocks are both
securities, but the major difference between the two is that stock holders are the owners of the
company ( i.e., they have an equity stake, whereas bond holders are lenders to the issuing
company) another difference is that bonds usually have a defined term, or maturity, after
which the bond is redeemed , whereas stocks may be outstanding indefinitely. An exception
is a consol bond, which is a perpetuity ( i.e., bond with no maturity).bond are issued by public
authorities, credit institutions, companies and supranational institution in the prim, markets.
the most common process of issuing bonds is through underwriting . in underwriting, one
more securities firms or banks, forming a syndicate, buy an entire issue of bonds from an
issuer and resell them to investors.

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There are various types of bonds which are available in the market.
Convertible Bonds:
This lets a bondholder exchange a bond to a number of shares of the issuers common stock.
Exchangeable Bonds:
This allows for exchange to shares of a corporation other than the issuer.
Fixed Rate Bonds:
Which have a coupon that remains constant throughout the life of the bond zero coupon
bonds. The bonds which do not pay any interest. they trade at a substantial discounts form par
value. The bond holder received the full principal amount as well as value that as accrue on
the redemption date. An example of zero coupon bonds are series E saving bonds issued by
the U.S government Zero coupon bonds may be created from fixed rate bonds by financial
institutions by ,tripping off the coupons. In other words, the coupons are separated from the
final principal payment of the bond and traded independently.

4. INVESTMENT ADVISORY SERVCES:

This division provides portfolio management services to high net-worth individuals and
corporate. The expertise of Karvy in research and stock broking gives it the right perspective
to provide investment advisory services. Company provides advisory services to its clients.

Financial goal of each individual investor varies according to his dream, ambition and family
size and future financial planning for the children & old age pension for self and wife so does
the pathway to achieve it. Karvy apply the principles of Financial Planning as both science &
art, it understands the time horizon, risk bearing capacity and investment goals of investors
keeping in mind their psyche and financial needs. Based upon this Karvy helps individual
investors to plan their entire life up to retirement, Taxes, Insurance needs and other important
personal financial goals. It designs portfolio for investor to invest their saving in various
financial products like shares, bonds, debentures, mutual funds, fixed deposits, insurance etc.,
Company design portfolio by considering following factors.

Investor’s requirement of getting money back,

Investor’s willingness to take risk,
Investor’s tax planning etc.

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5. MUTUAL FUNDS SERVICES:
Since its inception in 1982, Karvy has demonstrated a dedication coupled with dynamism that
has inspired trust from various segments – corporate, government bodies and individuals.
Karvy has since been performing a pivotal role as the intermediary – the interface – between
these players.
With Mutual Funds emerging as a distinct asset class, Karvy has made a strategic choice to
leverage the power of latest technology to provide a cutting edge to its services. Karvy, today,
service nearly 80% of the asset management companies (AMCs) across an extensive network
of service centers with assets under service in excess of Rs.10,000 crores.
Karvy's ability to mass customize and offer a diverse range of products for a diverse range of
customers has helped mutual fund companies to uniquely position themselves in the market
place. These diverse range of services cut across multiple delivery channels – service centers,
web, mobile phones, call center – has brought home the benefits of technology to investors,
distributors, and the mutual funds.
Going forward, Karvy shall strive to create new products and services, which would address
the needs of the end customer. Company’s single minded focus in delivering products for
customers has given it the distinguished position of being the preferred provider of financial
services in the country.

List of Mutual Fund Clients of KARVY:

1.RELIANCE MUTUAL FUNDS
2.AXIS MUTUAL FUNDS
3.PRINCIPAL MUTUAL FUNDS
4.CANTRA REBECO MUTUAL FUNDS
5.IDBI MUTUAL FUNDS
6. BANK OF BARODA MUTUAL FUNDS
7.QUANTAM MUTUAL FUNDS
8.MOTILAL MUTUAL FUNDS
9.RELIGARE MUTUAL FUNDS
10.BIRLA MUTUAL FUNDS
11.BHARTI AXA MUTUAL FUNDS
12.LIC MUTUAL FUNDS
13.STATE BANK OF INDIA MUTUAL FUNDS

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14.TATA MUTUAL FUNDS
15.SUNDARAM MUTUAL FUNDS
16.PUNJAB NATIONAL BANK MUTUAL FUNDS
17.KOTAK MUTUAL FUNDS

6.INCOME TAX ENABLED SERVICES:

Karvy has been started this service since March, 2004. Karvy is work as TIN Facilitation
Centre it provides following IT enabled services.
A. Distribution of PAN Card.
B. Distribution of TAN Card.
C. Services Related to e-TDS.
Karvy work as an intermediary between NSDL and IT payers. Karvy provides various form
for different IT enabled services and guide people to fill that forms. It also solves queries of
the tax payers. It also distributes PAN and TAN card to the tax payers.

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16
17
PAN CARD CORRECTION FORM :

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 CHAPTER- 2
INTRODUCTION
PROJECT

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2. WHAT IS A MUTUAL FUND?

Mutual fund is the pool of the money, based on the trust who invests the savings of a number
of investors who shares a common financial goal, like the capital appreciation and dividend
earning. The money thus collect is then invested in capital market instruments such as shares,
debenture, and foreign market. Investors invest money and get the units as per the unit value
which we called as NAV (net assets value). Mutual fund is the most suitable investment for
the common man as it offers an opportunity to invest in diversified portfolio management,
good research team, professionally managed Indian stock as well as the foreign market, the
main aim of the fund manager is to taking the scrip that have under value and future will
rising, then fund manager sell out the stock. Fund manager concentration on risk – return
trade off, where minimize the risk and maximize the return through diversification of the
portfolio. The most common features of the mutual fund unit are low cost. The below I
mention the how the transactions will done or working with mutual fund.

GROWTH OF MUTUAL FUNDS IN INDIA

By the year 1970, the industry had 361 Funds with combined total assets of 47.6 billion
dollars in 10.7 million shareholder’s account. However, from 1970 and on wards rising
interest rates, stock market stagnation, inflation and investors some other reservations about
the profitability of Mutual Funds, Adversely affected the growth of mutual funds. Hence
Mutual Funds realized the need to introduce new types of Mutual Funds, which were in tune
with changing requirements and interests of the investors. The 1970’s saw a new kind of fund
innovation; Funds with no sales commissions called “ no load “ funds. The largest and most
successful no load family of funds is the Vanguard Funds, created by John Boggle in 1977.
n the series of new product, the First Money Market Mutual Fund (MMMF) e.g. The Reserve
Fund” was started in November 1971. This new concept signaled a dramatic change in
Mutual Fund Industry. Most importantly, it attracted new small and individual investors to
mutual fund concept and sparked a surge of creativity in the industry.

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 BRANCH LEVEL MEMBER OF KARVY BATHINDA:

HISTORY OF MUTUAL FUNDS

Development of Mutual Funds in India

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at
the initiative of the Government of India and Reserve Bank . The history of mutual funds in
India can be broadly divided into four distinct phases.

 FIRST PHASE-1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by
the Reserve Bank of India and functioned under the Regulatory and administrative control of
the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in

21
 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 Can bank 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 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

22
 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..

MARKETING STRATEGY OF KARVY RELATED TO MUTUAL

FUNDS
• MARKET POSITIONING:
Market positioning statements of Karvy are “At Karvy we give you single window service”
and “We also ensure your comfort”.
So, Karvy focus on the consumers who prefer almost all investment activities at same place
by providing number of various financial services. At Karvy a person can purchase or sell
shares, debentures etc. and at the same place also demat it. Karvy also provides other
investment option to the same person at same place like Mutual Fund, Insurance, Fixed
Deposit, and Bonds etc. and help the person in designing his portfolio. By this way Karvy
provides comfort to its customers. India.

• TARGET MARKET:
Karvy uses demographic segmentation strategy and segment people based on their
occupation. Karvy uses selective specialization strategy for market targeting. Target person
for the Karvy Stock Broking and Karvy Investment Service are persons who can work as sub-
broker for the companies. Companies focus on Advisors of Insurance and post office, Tax
consultants and CAs for making sub-broker.

• MARKETING CHANNEL SYSTEM :

Karvy uses one level marketing channel for investment product distribution. Sub-brokers
work as intermediary between consumer and company. Company has both forward and
backward flow of activity through channel. Company distributes stationery, brokerage, and
information forward to its sub-broker. The sub-brokers send filled forms, queries, amount of
investment etc. back to the company.

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• TRAINING CHANNEL MEMBERS:
Karvy provides training to the sub-brokers because they will be viewed as the company by
the investors. The executives of Karvy brokers with its objective, risk factors and expected
return.

• ADVERTISING AND PROMOTION:

The objective of advertising of Karvy is to create awareness about services of Karvy among
investors and sub-brokers and increase sub-brokers of Karvy.
Company doesn’t give advertisement in media like TV, Newspapers, and Magazines etc.
Karvy’s advertisement is made indirectly by the companies associate with it. 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.

COMPARISON OF STOCK HOLDING CORP LTD & KARVY STOCK

BROKING LTD
1. Stock Holding Corporation of India Ltd. Provided all investment on physical format
while Karvy providing all investment through online portal as well as physical format
also like IPO’s, BOND. Online Shares Trading etc.
2. Karvy Providing his demat account on free of cost, but Stock Holding Corporation of
India Ltd. charging Rs.650 for each demat account.
3. Karvy not charging any brokerage or commission as online investment while Stock
Holding Corporation of India Ltd. charging brokerage charges.
4. Karvy having more then 500 branch across India, but Stock Holding Corporation of
india Ltd. having branches on Metro cities.

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What is a SIP?
In SIP, a fixed amount of money is debited by the investors banks account periodically and
invested in a specified mutual fund. The investor is allocated a number of units according to
the then current Net asset value. Every time a sum is invested, more units are added to the
investors account.
The strategy claims to free the investors from speculating in volatile markets by Dollar cost
averaging. As the investor is getting more units when the price is low and less units when the
price is high, in the long run the average cost per unit is supposed to be lower.
SIP claims to encourage disciplined investment. SIPs are flexible, the investors may stop
investing a plan anytime, or may choose to increase or decrease the investment amount. SIP
is usually recommended to retail investors who do not have the resources to pursue active
investment.

Systematic Investment Plan (SIP)

1. Systematic Investment Plan: Under this a fixed sum is invested each month on a
fixed date of a month. Payment is made through post dated cheque or direct debit
facilities. The investor gets fewer units when the NAV is high and more units when
the NAV is low. This is called as the benefit of Rupee Cost Averaging (RCA).
2. Systematic Transfer Plan: under this an investor invest in debt oriented fund and
give instruction to transfer a fixed sum, at a fixed sum, at a fixed interval, to an equity
scheme of the same mutual fund.
3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual fund
then he can withdraw a fixed amount each month.

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TYPES OF MUTUAL FUNDS:

26
BY OBJECTIVES FUNDS:

27
BY OBJECTIVES:
Investment goals vary from person to person. While somebody wants security, others might
give more weight age 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.
(A). EQUITY FUNDS:
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 FUNDS:

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 FUNDS:

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 combination for

28
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 FUNDS:

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 FUNDS:

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.

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(f). GROWTH FUNDS:
The aim of growth funds is to provide capital appreciation over the medium to long term.
Such schemes normally invest a majority of their corpus in equities. It has been proven that
returns from stocks, have outperformed most other kind of investments held over the long
term. Growth schemes are ideal for investors having a long term outlook seeking growth over
period of time.
(g). INCOME FUNDS:
The aim of income funds is to provide regular and steady income to investors. Such schemes
generally invest in fixed income securities such as bonds, corporate debentures and
government securities. Incomes funds are ideal for capital stability and regular income.

BY DURATION FUNDS:

2. BY DURATION:
(a). OPEN ENDED FUNDS:
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

30
sell units at NAV related prices which are declared daily basis. The key feature of this fund is
liquidity.
(b). CLOSE ENDED FUNDS:
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 FUNDS:

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

BY LOAD FUNDS:

31
 (A). LOAD FUNDS:
Marketing of new mutual fund scheme involves initial expenses. These initial expenses may
be recovered from the investors by entry or exit load.

(1). 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.
(2). EXIT LOAD or BACK –END LOAD:
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.
(3). DEFERRED LOAD:
The load amount charged to the scheme over a period of time is called a deferred load.
(4). 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.

OTHER TYPES OF FUNDS:

32
(4). OTHER TYPE OF FUNDS:

(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.
(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.

33
 (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.

RELIANCE MUTUAL FUNDS

Reliance Mutual Fund (RMF) is the biggest Mutual Fund house in India. It has has been
sponsored by Reliance Capital Ltd (RCL). RCL has been promoted by Reliance Industries
Ltd., one of India's largest private sector enterprises. Reliance Capital Asset Management Ltd
manages the investments of Reliance Mutual Fund.
Open Ended
• Reliance Arbitrage Advantage Fund
• Reliance Banking Exchange Traded Fund
• Reliance Banking Fund
• Reliance Diversified Power Sector Fund
• Reliance Equity Advantage Fund
• Reliance Equity Fund
• Reliance Equity Opportunities Fund
• Reliance Floating Rate Fund
• Reliance Gilt Securities Fund
• Reliance Gold Exchange Traded Fund
• Reliance Growth Fund
• Reliance Income Fund

34
• Reliance Index Fund - Nifty Plan
• Reliance Index Fund - Sensex Plan
• Reliance Infrastructure Fund
• Reliance Liquid Fund
• Reliance Liquid Plus Fund
• Reliance Liquidity Fund
• Reliance Long Term Equity Fund
• Reliance Media & Entertainment Fund
• Reliance Medium Term Fund
• Reliance Monthly Income Plan
• Reliance Natural Resources Fund
• Reliance NRI Equity Fund
• Reliance NRI Income Fund
• Reliance Pharma Fund
• Reliance Quant Plus Fund
• Reliance Regular Savings Fund
• Reliance Short Term Fund
• Reliance Small Cap Fund
• Reliance Tax Saver (ELSS) Fund
• Reliance Vision Fund
Close Ended
• Reliance Equity Linked Saving Fund
• Reliance Fixed Tenor Fund Plan A
• Reliance Fixed Tenor Fund Plan B
WHY RELIANCE MUTUAL FUND?
There’s a reason why Reliance Mutual Fund (RMF) is one of India’s leading and fastest
growing mutual fund houses. There’s a reason why we’re the preferred choice of millions of
progressive investors. Join us and be part of India’s growth story.

ORGANIZATION STRUCTURE OF MUTUAL FUNDS

Mutual funds have organization structure as per there Security Exchange Board of India
guideline, Security Exchange Board of India specified authority and responsibility of Trustee

35
and Aeest Management Companies. The objectives is to controlling, to promoted, to regulate,
to protected the investors right and efficient trading of units. Operation of Mutual fund start
with investors save their money on mutual fund, than Mutual Fund manager handling the
funds and strategic investment on scrip. As per the objectives of particular scheme manager
selected scrip. Unit value will become high when fund manager investment policy generate
the return on capital market. Unit return depends on fund return and efficient capital market.
Also affects international capital market, liquidity and at last economic policy. Below the
graph indicates how the process was going on to investors to earn returns. Mutual fund
manager having high responsibility inside of return and how to minimize the risk. When fund
provided high return with high risk, investors attract to invest more fund for same scheme.

The Mutual fund organization as per the SEBI formation and necessary formation is needed
for sooth activities of the companies and achieved the desire objectives. Transfer agent and
custodian play role for dematerialization of the fund and unit holders hold the account
statement, but custody of the unit is on particular Asset Management Company. Custodian
holds all the fund units on dematerialization form. Sponsor had decided the responsibility of
custodian when investor to purchase the fund and to sell the unit. Application forms,

36
transaction slip and other requests received by transfer agent, middle men between investors
and Assts Management Companies.

1. Sponsor
2. Board of Trusties
3. Asset Management Company
4. Custodian and Depositories
5. Distributors

1. SPONSOR:
“Sponsor” is defined under SEBI regulation as any person who, acting alone or in
combination with another body corporate, establishes a mutual fund. The sponsor gets the
fund registered with SEBI. The sponsors form a trust and appoint a Board of Trustees.
The sponsor must contribute at least 40% of the net worth of the AMC.
The sponsor must possess a sound financial track record over 5 years prior to registration.

2. BOARD OF TRUSTIES :
Mutual funds are managed by Board of Trustees. Trust is created by a document called the
Trust Deed that is executed by fund sponsor in favour of trustees.
The trustees appoint the AMC and custodian with the prior approval of SEBI.
They also approve all the schemes floated by the AMC.
They have right to dismiss the AMC, with the approval of SEBI.
Half of the trustees should be independent persons. Neither the AMC, nor its employees can
act as trustee.
3. ASSET MANAGEMENT COMPANY:
The role of an AMC is to act as the investment manager of the Trust under the Board
supervision and direction of the Trustees.
The AMC is required to be approved and registered with SEBI.
The AMC of a Mutual Fund must have a net worth of at least Rs. 10 crore at all time.
The AMC cannot act as a trustee of any other Mutual Fund.
They will float schemes only after obtaining the prior approval of the Trustees and SEBI.
The director of AMC should be a person of reputed of high standing and at least have five

37
years experience in relevant field. AMC can be terminated with 75% unit holders or majority
of trustees.

4. CUSTODIAN AND DEPOSTORIES:

As per SEBI Regulations Mutual Funds shall have a custodian who is not any way associated
with the AMC. It carry outs the activity of safe keeping the securities or participating, in any
clearing system. The custodian should be independent from sponsors and AMC and should
have a sound track record and adequate relevant experience.
As Indian capital markets are moving away from having physical certificates to ownership of
these securities in “dematerialized” form with Depository. Mutual Fund’s “dematerialized”
securities are hold by depository participant.

5. DISTRIBUTORS:
For a fund to sell units across a wide retail base of individual investors, an established
network of distribution agents is essential. AMCs usually appoint Distributors or Brokers,
who sell units on behalf of the fund. A broker usually acts on behalf of several mutual funds
simultaneously and may have several sub-brokers under him for the purpose of distribution of
units.

CHARACTERISTICS OF MUTUAL FUNDS

.1. ASSURANCE OF MINIMUM RETURNS:

In general mutual funds do not assure any minimum returns to their investors. However,
Indian Mutual Fund Schemes launched during 1987 to 1990 assured Specific returns till
1991, when the SEBI and Union Ministry of Finance order the Mutual funds not to assure
minimum returns. Recently, SEBI has formulated a policy that, mutual funds with a track
record of five years will be allowed to offer fixed returns not exceeding one year period.

2. MULTIPLE OPTIONS:
Most of the mutual fund schemes are offering different options to the investors under one
scheme.

38
For example, a growth oriented scheme may offer option of either regular income or
re-investment of income. Under the regular income plan, dividend shall be distributed to
investors and under the second dividend will be reinvested and total amount shall be paid at
time of resumption.

3. LIQUIDITY:
Generally open-ended funds offer the facility of repurchase and the close ended are traded at
stock exchange offering repurchase after a minimum lock in period of two to three years.
Mutual funds also have a facility to pledge or mortgage at banks to obtain loan and can be
transferred in favor of any individual.

4. INCENTIVES TO EARLY SUBSCRIBERS:

Most of the close-ended mutual fund schemes are offering incentives to encourage early
subscription to investors. This is more often in the tax planning schemes. For instance, if the
scheme is open for a period of three months, the investor may be allowed a deduction from
the amount to be invested at a certain specified rate, if the subscriptions were during the
specified time limits.

TAX ASPECT OF MUTUAL FUND

DIVIDEND MADE TAX-FREE:
Dividend received from a domestic company and income distributed by UTI-I or any MF, to
its unit holders has been made tax-free from 1.4.03 onwards. However, dividend declared,
distributed or paid by such sources shall be charged a distribution tax of @16.995% flat. This
distribution tax is in addition to the normal income tax payable by them.
CAPITAL GAIN TAX:
Capital gains are generated through the sale of stocks, bonds and other investments, which
have appreciated in value, from the fund’s portfolio. There are no capital grain tax on MF and
stock market. While STCG are subject to Tax@10% even traded through stock exchange and
security from action tax has been paid. Unquated shares/ MF are subject to tax at normal rate
of tax.

39
INCOME RECEIVED FROM MUTUAL FUND:
The Internal Revenue Service might depend upon the nature of your mutual fund investment.
Generally, most income generated from a mutual fund account, with the exception of tax-
exempt money market or municipal bond funds, is subject to federal taxes as ordinary income
or capital gains
WEALTH TAX:
Under sec 2(1)(e) of Wealth tax Act it is not treated as an asset. Therefore this is exempted from tax
liability.

GIFT TAX:
Mutual Fund may be given as a gift and no tax is applicable by done.
TDS ON REDEMPTION:
No TDS is required to be deducted from capital gain at the time of redemption in case of
mutual fund.

TAX BENEFITS ON INVESTMENT IN MUTUAL FUND:

(1) 100% Income Tax Exemption on all Mutual Fund dividends.

(2) Capital Gains tax to be lower of –
10% on the capital gains without factoring indexation benefits and
20% on the capital gains after factoring indexation benefits.
(3) Open-end funds with equity exposure of more than 50% are exempt of dividend tax for a
period of 3 years from 1999-2000.
Another Investment Avenue featuring in the list of “eligible” instruments is the Equity
Linked Saving Scheme or tax saving funds. Simply put, these are mutual fund schemes
wherein investment up to Rs 100,000 qualifies for Section 80 benefits. Investors are given the
unique opportunity to invest in an equity-linked product and still claim tax benefits on the
same; which is quite a departure from conventional tax saving instruments. Tax saving funds
has a mandatory 3-Yr lock in period, which distinguishes them from conventional equity-
oriented funds, which have no constraints on liquidity.

40
ADVANTAGES OF MUTUAL FUNDS

1. PORTFOLIO DIVERSIFICATION:
Each investor in a fund is a part owner of all the fund’s assets, thus enabling investor to hold
a diversified investment portfolio even with a small amount of investment, which would
otherwise require big capital.
2. PROFESSIONAL MANAGEMENT:
Mutual Funds provide the services of experienced and skilled professionals, backed by a
dedicated investment research team that analyzes the performance and prospect of companies
and selects suitable investments to achieve the objectives of the scheme.
3. DIVERSIFICATION:
Mutual Fund invests in a number of companies across a broad cross-section of industries and
sectors. This diversification reduces the risk because all stock cannot go through a downtrend
at the same time and in the same proportion. You achieve this diversification through a
mutual fund with powerless money that you can do on your own.
4. REDUCTION OF TRANSACTION COST:
The investors bear all the cost of investing such as brokerage or custody of securities. When
going through the fund investor has the benefit of economies of scale; the funds pay lesser
cost because of larger volumes, a benefit passed on to its investors.
5. LIQUIDITY:
By investing in Mutual Funds the investors can cash their investment by selling their units to
the fund if open-ended, or selling them in the stock market if the fund is close ended.
6. CONVENIENCE & FLEXIBILITY:
Mutual Funds Companies offer investor to transfer their holding from one scheme to other.
7. TAX BENEFITS:
The investors are totally exempt from paying any tax on the income they receive from the
Mutual Funds.
8. REGULATORY OVERSIGHT:
Mutual funds are subject to many government regulations that protect investors from fraud.

41
9. CONVENIENCE:
You can usually buy mutual fund shares by mail, phone, or over the Internet.

DISADVANTAGES OF MUTUAL FUNDS

1. NO CONTROL OVER COSTS:
An investor in a mutual fund has no control over the overall cost of investing. He/she has to
pay investment management fees as long as he/she remains with the fund. Fees are payable
even while the value of the investment may be declining.
2. NO TAILOR MADE PROTFOLIOS:
Investors who invest on their own can build their own portfolios of shares and bonds and
other securities. Investing through fund means he/she delegates this decision to the fund
managers.
3. MANAGING A PORTFOLIO OF FUNDS:
Availability of a large number of funds can actually mean too much choice for the investor.
He/she may again need advice on how to select a fund to achieve his/her objectives, quite
similar to the situation when he/she has to select individual shares or bonds to invest in.
4. ENTRY AND EXXIT COST:
When large bodies like a fund invest in shares, the concentrated buying or selling often result
in adverse price movements i.e. at the time of buying, fund has to pay high and vise-versa.
5. NO GUARANTEES:
No investment is risk free. If the entire stock market declines in value, the value of mutual
fund shares will go down as well, no matter how balanced the portfolio. Investors encounter
fewer risks when they invest in mutual funds than when they buy and sell stocks on their
own. However, anyone who invests through a mutual fund runs the risk of losing money.

42
 CHAPTER- 3

OBJECTIVES AND SCOPE

OF THE STUDY

43
OBJECTIVES OF THE STUDY:

This study undertaken at the Karvy Stock Broking Limited at Bathinda city. Following
objectives are as follows:

• To know the attitude of investors towards Mutual Funds & other investment avenues.
• To know the advantages and dis-advantages of Mutual Funds.
• To come up with the comparison of Mutual Funds.
• To understand about the fixture Mutual Funds.

SCOPE OF STUDY
The study is limited to “KARVY STOCK BROKING LIMITED.” This research is conducted
at Bathinda. The period of research is 4 months.

44
 CHAPTER- 4
RESEARCH
METHODOLOGY

45
 RESEARCH METHODOLOGY:
Research means an objective, organized and scientific enquiry to search or gain some new
knowledge on a specific topic. Methodology refers to the theoretical analysis of the methods
appropriate to a field of study or a branch of knowledge. A research methodology has a
specified manner. Research methodology means a “defining a problem, defining the research
objectives, developing the research plan, collecting the information, analyzing the
information and presentation of finding.” Such framework is called “Research Design”. the
research process that was followed by me consists of the following steps:

DEFINING THE PROBLEM AND RESEARCH OBJECTIVES:

The main objective of conducting this research by me is to collect relevant data about
satisfaction level among the clients of KSBL who invest in mutual funds.

DEVELOPING THE RESEARCH PLAN:

The developing the research plan has following steps:
DATA SOURCES: Two types of data:
(A) PRIMARY DATA: Primary data is a data which did not exit earlier is being
collected by the researcher first time for its specific objectives. In other words, direct
collection of data from the source of information and technology includes:
• Personal interviews
• Telephone interviews
• Observations
• Questionnaire
(B) SECONDARY DATA: Any data which has been collected earlier for some purpose
is the secondary data. For example collecting of data from:
• Books
• Magazines
• Newspapers
• Internet sites

46
RESEARCH APPORACH:
Survey is best suited for descriptive and analytical research. Descriptive research includes
survey and fact finding enquires of different kinds.

RESEARCH INSTRUMENTS:
Questionnaire is a document in a paper for containing a set of questions that has been
specially formulated as a means of collecting information and surveying opinions etc.

SAMPLING PLAN:
Sample is a group of few items which represents the population or universe from where it has
been taken. The sampling plan calls for three decisions.
(A) SAMPLE UNIT: Who is to be surveyed?
The target population must be defined has to be sampled, it is necessary to develop a sample
frame so that everyone in the target population has an equal chance.
(B) SAMPLE SIZE: How many people have to be surveyed?
Large sample size gives more reliable results than small samples.
The sample consists of 100 respondents.
(C) SAMPLE EXTENT: BATHINDA CITY

COLLECTING THE INFORMATION: After this, I have collected the information

from the respondents with the help of questionnaire.

ANALYZE THE INFORMATION:

The next step is to extract the findings from the collection data. The whole data was grouped
aspect wise and was presented in tabular form. Thus, frequencies and percentage were
prepared to render impact of study.

47
 CHAPTER- 5
DATA ANALYSIS
AND
INTERPRETATION

48
1. Which Income bracket best describe your annual income?

Income (Rs. in lakh) No. of Respondent

Up to One 7

1 to 2.5 30

2.5 to 5 45

>5 18

Total 100

Interpretation:
 36 of the respondents invest less than 10 in mutual fund out of their total investment
compare to 31 who invest their 10-20 of their total investment.
 23% respondents invest 20-40 of their total investment where as respondent greater
than 40 invest of their total investment in mutual fund.

49
2. How much of total investment do you invest in mutual fund?

Investment (in %) Number of respondent

<10 36
10-20 31
20-40 23
>40 10
Total 100

Interpretation:
 36 of the respondents invest less than 10 in mutual fund out of their total investment
compare to 31 who invest their 10-20 of their total investment.
 23% respondents invest 20-40 of their total investment where as respondent greater
than 40 invest of their total investment in mutual fund.

50
3. What is the Primary objective of your investment?

Objectives Number of respondent

Tax benefits 32

Capital Appreciation 34

Dividend 08

Liquidity 26

Total 100

Interpretation:
 About 34 of the respondent’s primary objective is capital appreciation. Tax benefit is
the second objective of the respondent 31.
 Liquidity as a primary objective constitutes only 26. 8 invest for the objective of
dividend.

51
4. Which of the following types of Mutual Fund do you invest in?

Types of Mutual Fund Number of respondent

Open Ended 39

Close Ended 10

Both 51

Total 100

Interpretation:
 Open ended schemes constitute 39 of the total respondents. Where as only 10
constitute close ended schemes.
 Both open ended and close ended constitute about half of the respondent (51).

52
5. What is your preference of investment among the following schemes?

Schemes Number of respondent

Equity 41

Debt 19

Sectoral 29

Others 11

Total 100

Interpretation:
 Equity schemes are the most preferred (41), then Sectoral schemes (29).
 Debt schemes constitute 19 and others constitute only 11.

53
6. Which of the following company’s (Mutual Fund) did you make maximum
investment in?

Companies Number of Respondent

Reliance 24
ICICI Prudential 06
LIC 36
Karvy 21
Others 13
Total 100

Interpretation:
 Reliance mutual fund is widely expected (second position) just after LIC which
constitute 36 of the respondents. Karvy on 3rd (21).
 ICICI Prudential is least popular (only 6).
 Others mutual funds constitute 13 of the respondents.

54
7. Do you think that the performance of Mutual Fund Company effect the criteria
of Investment?

Opinion Number of Respondent

Yes 80
No 12
Can’t Say 08
Total 100

Interpretation:
 Maximum of the respondents (80) think that the performance of Mutual Fund
Company affects the criteria of investment whereas 12 don’t believe so.
 8 are unable to say anything.

55
8. Are you satisfy with the return or your present investment?

Opinion Number of respondents

Highly Satisfied 09
Satisfied 47
Unsatisfied 32
Highly Unsatisfied 12
Total 100

Interpretation:
 About half of the respondents (47) are satisfied with return of their present
investment. On the other hand 32 are unsatisfied also.
 9 of the respondents are highly satisfied compare to 12 who are highly unsatisfied.

56
9. Do you think that mandatory of permanent account number (PAN)
effect the investment?
Opinion Number of respondent

Yes 77

No 18

Can’t Say 05

Total 100

Interpretation:

77 of the respondents think that mandatory PAN effect the investment. On the other hand, 18
don’t believe so.

5 are unable to say anything.

57
10. Do you think that Mutual Fund Investment is Profitable?

Opinion Number of respondent

Yes 75

No 25

Interpretation:

75 of the respondent says yes mutual Fund Investment is profitable

25 says no

58
 CHAPTER-6
FINDING
OF THE STUDY

59
FINDINGS

1. Majority of the respondent we met were Male in the age group of 30-40 yrs.
2. More than 65 of the investor invest only about 20 of their total investment in Mutual
fund.
3. Majority of investors have invested in LIC, as perhaps it’s oldest and reliable trust.
4. Amongst the private player, Karvy Mutual fund is rapidly becoming popular among
investors.
5. People invest in Mutual Fund Primarily for capital growth and secondarily for tax
benefits % liquidity.
6. Majority of the investors for equity schemes.
7. Open ended schemes have more preference to close ended schemes.

60
CHAPTER-7
LIMITATIONS

61
LIMITATIONS

• Due to limitation of time and cost constrains a sample size of only 100 respondents
was chosen.
• Data Analysis and interpretation done may not be that strong due to small sample.
• The sample extent for research is only Bathinda City.
Some of the respondents may be biased in giving responses.
• Study has been done on environment only.
• Cost effectively
• Time consuming process
• Incorrect information

62
 CHAPTER -8
RECOMMENDATIONS
AND CONCLUSION

63
RECOMMENDATIONS AND CONCLUSION

1) There is a large scope of Mutual Funds to invest in especially in suburban area.

2) There is need to have more promotional activities from the very grass root level such as
installing canopy, advertising through print & electronic medic.
3) People invest their savings in a trust not in a company. So investors trust should be
maintained and developed by delivering best services and after safe services, value
added services and after sale services.
4) The objective of the investment for mutual fund should be capital growth and fund
should be invested in equities.
5) Equity schemes of Mutual Fund are the most preferred amongst investors as they give
high returns over the other schemes.
6) Open ended scheme is highly preferred amongst customers as there may be reasons for
redemption of unit at any period of time.
7) Performance of mutual should be focused on by providing necessary facts figures,
award & other achievement of the trust.
8) Investors got their expected returns from the investment they have make already and
thus it widen the scope of investment further.

64
BIBLIOGRAPHY

 https://www.google.co.in/?gws_rd=cr&ei=Ez_yUswsiLesB4vhgMgO
 https://www.google.co.in/search?client=opera&q=www.karvy.com&sourc
eid=opera&ie=UTF-8&oe=UTF-8
 https://www.google.co.in/search?client=opera&q=www.relaincemutual.co
m&sourceid=opera&ie=UTF-8&oe=UTF-8
 https://www.google.co.in/search?client=opera&q=www.nseindia.com&so
urceid=opera&ie=UTF-8&oe=UTF-8
 https://www.google.co.in/search?client=opera&q=www.reaaliancemutualf
und.com&sourceid=opera&ie=UTF-8&oe=UTF-8
 https://www.google.co.in/search?client=opera&q=www%2Cmutualfundso
nisa.com&sourceid=opera&ie=UTF-8&oe=UTF-8

65
 CHAPTER-9
ANNEXURE
QUESTIONAIRE

66
 QUESTIONAIRE
Q.1 Which Income bracket best describe your annual income?
Up to One 1 to 2.5 2.5 to 5 >5

Q.2 How much of total investment do you invest in mutual fund?

<10 10-20 20-40 >40

Q.3 What is the Primary objective of your investment?

Tax benefits Capital appreciation Dividend Liquidity

Q.4 Which of the following types of Mutual Fund do you invest in?
Open Ended Close Ended Both

Q.5 What is your preference of investment among the following schemes?

Equity Debt Sectoral Others

Q.6 Which of the following AMC’S (Mutual Fund) did you make maximum investment
in?
Reliance ICICI Prudential LIC Karvy Others

Q.7 Do you think that the performance of AMC effect the criteria of Investment?
Yes No Can’t Say

Q.8 Are you satisfy with the return or your present investment?
Highly Satisfied Satisfied Unsatisfied Highly Unsatisfied

Q.9 Do you think that mandatory of permanent account number (PAN) effect the
investment?
Yes No Can’t Say

Q.10 Do you think that Mutual Fund Investment is Profitable?.

Yes No

67