TABLE OF CONTENTS

CHAPTER NO 1-INTRODUCTION

COMPANY PROFILE……………………………………………………………………….1
INTRODUCTION OF STOCK………………………………………………………………5
HISTORY OF PRODUCT……..………………………………………………………….6-7
PRODUCT FRAME WORK………..………………………………………………...….8-11
KARVY SERVICE………………………………………………………………………12-20
FUNDAMENTAL RISK AND STRATEGIES………………………………………….21-29

CHAPTER NO 2-RESEARH METHODLOGY

 Research Objectives
 Scope of Study
 Research design
a) Research Problem Statement and Introduction
b) Research Hypothesis
c) Type of Research
d) Sampling Design
e) Sampling Method
f) Population Size
g) Size of Sample
h) Method of Data Collection
i) Data Collection Tools
j) Method of Presentation of Data
k) Method of Organization of Data
CHAPTER NO 3-FINDING & INTERPRITATION

ANALYSIS OF DATA…………………………………………………………..
FINDINGS……………………………………………………………………..
RECOMMENDATION………………………………………………………
CONCLUSION……………………………………………………………….
ANNEXURE………………………………………………………………………..
 CHAPTER 1

COMPANY PROFILE
 COMPANY PROFILE

Fig 1: Company Logo

This contemporary look reflects our youth, dynamism, customer focus, and renewed business
strategy. The signature symbolizes our well established credo of providing a host of service with a
“Human touch” to the commonest of men in the remotest parts of the country.

Vision of Karvy

To achieve and 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 satisfaction and set industry
standards.
Mission Statement
Our mission is to be leading and preferred service provider to our customers, and we aim to
achieve this leadership position by building an innovative enterprise and technology driven
organization which will set the highest standards of service and business ethics.
VALUTION OF KARVY GROUP
Karvy was incorporated in the year 1982 with its
flagship company Karvy Consultants Limited. The
birth of Karvy began with the vision and enterprise
of a group of five Chartered Accountants, based out
of Hyderabad, who founded Karvy. Karvy initially
started with Consulting and Financial Accounting
automation, and carved inroads into the field of
corporate shareholding servicing. Karvy has travelled
the success route, towards building a reputation as an
Integrated financial service provider, offering a wide
spectrum of services for over 25 years.

Karvy has utilized its quality experience and specialized

expertise to grow from strength to strength to provide
better and new services to its customers with a
nationwide presence with over 400 offices in over
300 cities.

The Karvy Group is today a well-diversified conglomerate. Its businesses straddle the entire
financial services spectrum as well as data processing and managing segments. Since most of its
financial services were retail focused, the need to build scale and skill in the transaction processing
domain became imperative. Also during stressed environment in the financial services segment, the
non-financial businesses bring in a lot of stability to the group’s businesses.

Karvy’s financial services business is ranked among the top-5 in the country across its business
segments. The Group services over 70 million individual investors in various capacities, and
provides investor services to over 600 corporate houses, comprising the best of Corporate India.

The Group offers stock broking, depository participant, distribution of financial products (including
mutual funds, bonds and fixed deposits), commodities broking, personal finance advisory services,
merchant banking & corporate finance, wealth management, NBFC (loans to individuals, micro
and small businesses), Data management, Forex& currencies, Registrar & Transfer agents, Data
Analytics, Market Research among others.
KARVY STRUCTURE
PRODUCT & SERVICES
We understand only players with full range of products can succeed in the today’s market so
are we. We provide online, offline and telephonic support for all the products.


Equity Trading 


IPOs 



Commodities Trading 

Debt Trading 



Mutual Funds Broking 


Insurance 

Advisory Platform 



Derivatives Trading 


Currency Trading 


Real Estate Broking 


Fixed Deposits and other Savings Products 

Funding and Lending Products 
 INTRODUCTION TO MUTUAL FUND
A mutual fund is just the connecting bridge or a financial intermediary that allows a group of
investors to pool their money together with a predetermined investment objective. The mutual
fund will have a fund manager who is responsible for investing the gathered money into specific
securities (stocks or bonds). When you invest in a mutual fund, you are buying units or portions of
the mutual fund and thus on investing becomes a shareholder or unit holder of the fund.

Mutual funds are considered as one of the best available investments as compare to others they
are very cost efficient and also easy to invest in, thus by pooling money together in a mutual fund,
investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on
their own. But the biggest advantage to mutual funds is diversification, by minimizing risk &
maximizing returns.

Figure 2.1: Mutual fund

2.1 HISTORY OF MUTUAL FUNDS
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 of India. 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 place of RBI. The first
scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6700 crores of
assets under management.

Second Phase – 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and
Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI
Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Canbank
Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund
(Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its
mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.
At the end of 1993, the mutual fund industry had assets under management of Rs.47004 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.121805 crores. The Unit Trust of
India with Rs.44, 541 crores of assets under management was way ahead of other mutual funds.
Fourth Phase – since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into
two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under
management of Rs.29, 835 crores as at the end of January 2003, representing broadly, the assets of
US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust
of India, functioning under an administrator and under the rules framed by Government of India
and does not come under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered with
SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI
which had in March 2000 more than Rs.76000 crores of assets under management and with the
setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with
recent mergers taking place among different private sector funds, the mutual fund industry has
entered its current phase of consolidation and growth.

Growth of The graph indicates the assets over the years.

Figure 2.2: History of Mutual Fund

FRAMEWORK OF A MUTUAL FUND

Figure 4.3: Mutual Fund Framework

The Sponsor:

The Sponsor is the creator of the fund, establishes the mutual fund and gets it registered with SEBI
and will typically hold a number of voting shares (perhaps 100) in the fund, but these are not
entitled to any distributions or share in the equity. All of the equity belongs to the investors
typically in the form of non-voting "preferred redeemable shares". The voting shares generally
control management of the fund, apart from limited major decisions. The sponsor is the Settlers of
the Trust that holds Trust property on behalf of investors who are the beneficiaries of the Trust.
The sponsor is also required to contribute at least 40% of the capital of the asset management
company, which is formed for managing the assets of the Trust.

The Board of Trustees:

The mutual fund needs to be constituted in the form of a trust and the instrument of the trust should
be in the form of a deed registered under the provisions of the Indian Registration Act, 1908. The
supervisory role is fulfilled by the Board of Trustees of the Investment Company. The board of
trustees manages the MF and the sponsor executes the trust deeds in favor of the trustees. It is the
job of the MF trustees to see that schemes floated and managed by the AMC appointed by the
trustees are in accordance with the trust deed and SEBI guidelines.
Lists of mutual funds that are available for investors in the Karvy platform
 Axis Mutual Fund
 Baroda Pioneer Mutual Fund
 BOI AXA Mutual Fund
 Canara Robeco Mutual Fund
 DHFL Pramerica Mutual Fund
 Edelweiss Mutual Fund
 Essel Mutual Fund
 IDBI Mutual Fund
 India Bulls Mutual Fund
 INVESCO Mutual Fund
 JM Financial Mutual Fund
 LIC Mutual Fund
 Mirae Asset Mutual Fund
 Motilal Oswal Mutual Fund
 Principal Mutual Fund
 Quantum Mutual Fund
 Reliance Mutual Fund
 Taurus Mutual Fund
 UTI Mutual Fund
The Asset Management Company (AMC):

The company that manages a mutual fund is called an AMC. An AMC may have several mutual
fund schemes with similar or varied investment objectives. The AMC hires a professional money
manager, who buys and sells securities in line with the fund's stated objective. All Asset
Management Companies (AMCs) are regulated by SEBI and/or the RBI (in case the AMC is
promoted by a bank). In addition, every mutual fund has a board of directors that represents the
unit holders' interests in the mutual fund.

This entity undertakes the designing and marketing of schemes, raises money from the public under the
schemes and manages the money on behalf of its owners. To segregate the collected funds from this
entity's own funds, the corpus is placed in a legal vehicle. It is the character of this legal vehicle that
determines the character of the Fund itself. Irrespective of the nature of the structure, what is more
fundamental is that in view of the fiduciary role of the AMC or the fund manager towards the public,
there is a need for supervision of the activities of the AMC or fund manager by a separate body. The
assets of the Trust comprise of properties of the schemes, which are floated by the asset management
company with the approval of the Trustees Schemes may have different characteristics - they may be
open or closed ended or may have a particular investment focus or portfolio composition. Finally, the
safe custody of assets of the Trust is entrusted to one or more custodians.

The mutual fund industry or asset management industry in India started in 1963 with the formation
of Unit Trust of India, under the aegis of the Government of India and Reserve Bank of India. But it
was not until 1993 when the entry of private sector mutual fund houses happened. From 1993 when
the investor asset size was a mere Rs 47,000 crore, the AMC market has grown to Rs 25 lakh crore
in 25 years.

The number of mutual fund houses went on increasing, with many foreign mutual funds setting up
shop in India and also the industry witnessing several mergers and acquisitions. Now there are
roughly two dozen AMCs in India.

Here’s a look at the top five asset management companies in India in terms of quarterly average
assets under management (AUM). We are not indicating that the largest AMCs are necessarily the
best but it’s just the plain ranking of AMCs based on AUM.

ICICI Prudential Mutual Fund – IPru is the largest mutual fund house in India. It reported a
quarterly average AUM (QAAUM) of a whopping Rs 3.1 lakh crore (at the June-2018 end). The
AMC is a joint venture between ICICI Bank and UK’s Prudential Plc. Through years of the joint
venture, the company has forged a position of pre-eminence in the Indian MF industry. The AMC
has witnessed substantial growth in scale; from two locations and six employees at the inception of
the joint venture in 1998 to a current strength of over 1,900 employees with a reach across over 200
locations. It is estimated to have an investor base of more than 3 million investors. Nimesh Shah is
the CEO & MD. Sankar Naren is the ED & CIO, while Rahul Goswami is the CIO – Fixed Income.

HDFC Mutual Fund – Following IPru closely is HDFC Mutual Fund in the second spot. The
AMC manages a QAAUM of Rs 3.06 lakh crore. This AMC is a joint venture between HDFC and
Standard Life Investments. The company began its journey in 1999.
With organic growth and acquisitions (Zurich India and Morgan Stanley MF) the company has
managed to be the market leader across industry parameters. Over the past five years, HDFC AMC
has seen strong AUM growth of 25% CAGR (FY13-18). Revenues and profits grew at a CAGR of
20% and 18% respectively. Like IPru, it enjoys a strong distribution network (bank), strong
parentage, solid brand image and robust financial growth. The AMC did a successful Rs 2,800-
crore IPO and investors were enthused with its higher mix of high-margin equity oriented AUM and
consistent RoE of over 30%. Milind Barve is the CEO. Prashant Jain is ED & CIO. The company
enjoys a market value of over Rs 35,000 crore.

Aditya Birla Sun Life Mutual Fund – ABSL MF is the third largest with a QAAUM of Rs 2.49
lakh crore. Aditya Birla Sun Life AMC Limited (formerly known as Birla Sun Life AMC) is a joint
venture between the Aditya Birla Group and the Sun Life Financial Inc. of Canada. It was
established in 1994. The MF boasts of an impressive mix of reach, a wide range of product
offerings across equity, debt, balanced as well as structured asset classes and sound investment
performance. The company has around 6.4 million investor folios. It has a pan India presence across
247 locations. A Balasubramanian is the CEO and has been with the organisation since 1994.
Mahesh Patil is the co-chief investment officer and spearheads equity investments, while co-chief
investment officer Maneesh Dangi oversees the fixed income investments.

Reliance Mutual Fund – Following ABSL MF closely is the 4th largest. Reliance MF reported a
QAAUM of Rs 2.40 lakh crore. The company has 8.39 million investor folios. Part of the Reliance
Anil Dhirubhai Ambani (ADA) Group, RMF offers investors a well-rounded portfolio of products
to meet varying investor requirements and has a presence in 160 cities across the country. In Nov-
2017, the AMC was the first in recent years to be listed in the Indian capital market. Reliance
Nippon Life AMC is a leader in its own right. It has an annualized SIP book of nearly Rs 10,000
crore, enjoys a leadership position in retail, holds one of the highest B-30 assets (Beyond 30 cities)
and its equity assets as a proportion of total assets have grown to 37%. The AMC, present across
293 locations, has 1206 employees and has over 68,000 distributors. Like ABSL MF, Reliance does
not have its own bank. But that has not stopped the AMC from forging ahead. It is the only AMC
with more than 15 years of experience in managing ETFs. Sundeep Sikka, ED & CEO, leads
Reliance Nippon Life Asset Management. Manish Gunwani is the CIO – equity investments and
Amit Tripathi is the CIO – fixed income investments.

SBI Mutual Fund – With 30 years of experience in fund management, SBI Funds Management
Pvt. Ltd. has a strong lineage that traces back to the State Bank of India (SBI) – India’s largest
bank. It is a joint venture between SBI and AMUNDI (France). The fund house has a QAAUM of
Rs 2.33 lakh crore. It has a network of over 222 points of acceptance across India. Over the years,
the fund house has steadily gained market share and risen in the ranks. A large part of its investment
performance should be attributed to its equity investment management prowess. Plus, extremely
strong distribution support from SBI has helped penetrate markets. Recently, SBI MF announced
the appointment of Ashwani Bhatia as the MD & CEO of SBI Funds Management Pvt Ltd.
Navneet Munot is the ED & CIO.

The Custodian:

Custodian holds the fund's cash and investment assets. Commonly, parts of the fund's assets are
held by one or more brokers who execute trades on behalf of the fund. Custodial Fees can also be a
fixed fee or a percentage of NAV. Where a broker acts as de facto custodian, it usually charges on
a transactional basis.
Transfer Agents:

Mutual funds and their shareholders also rely on the services of transfer agents to maintain
records of shareholder accounts calculate and distribute dividends and capital gains, and prepare
and mail shareholder account statements, federal income tax information, and other shareholder
notices. Some transfer agents also prepare and mail statements confirming shareholder
transactions and account balances, and maintain customer service departments to respond to
shareholder inquiries. Depending on the complexity of the fund, the administrator's fees could be
as little as a few thousand dollars a year or as much as 0.5 to 0.65 % of the NAV per annum.
TYPES OF MUTUAL FUNDS

Types of Mutual
Funds

By
By
Investment
Structure
Objective

Open Close
Interval Equity Debt Balanced
Ended Ended

Fig. 2.4 Types of mutual fund

1.Equity fund:

These funds invest a maximum part of their corpus into equities holdings. The structure of
the fund may vary different for different schemes and the fund manager’s outlook on
different stocks. The Equity Funds are sub-classified depending upon their investment
objective, as follows:


Diversified Equity Funds 


Mid-Cap Funds 


Sector Specific Funds 

Tax Savings Funds (ELSS) 

Equity investments are meant for a longer time horizon, thus Equity funds rank high on the
risk-return matrix.
2. Debt funds:

By investing in debt instruments, these funds ensure low risk and provide stable income to
the investors. Debt funds are further classified as:

 Gilt Funds 

 Income Funds 

 MIP 

 Short Term Plans (STP) 

Liquid Funds 


3. Balanced funds:

They invest in both equities and fixed income securities, which are in line with pre-defined
investment objective of the scheme. These schemes aim to provide investors with the best
of both the worlds. Equity part provides growth and the debt part provides stability in
returns.

Further the mutual funds can be broadly classified on the basis of

investment parameter which is as under:


Growth Schemes: Growth Schemes are also known as equity schemes.

The aim of
 theseschemes is to provide capital appreciation over medium to long term.


Income Schemes: Income Schemes are also known as debt schemes. The aim of

theseschemes is to provide regular and steady income to investors. These schemes
 generally invest in fixed income securities such as bonds and corporate debentures.


Balanced Schemes: Balanced Schemes aim to provide both growth and income
byperiodically distributing a part of the income and capital gains they earn. These
schemes invest in both shares and fixed 
income securities, in the proportion indicated in
their offer documents (normally 50:50).


Money Market Schemes: Money Market Schemes aim to provide easy liquidity,
preservation of capital and moderate income. These schemes generally invest in safer,
 short-term instruments, such as  treasury bills, certificates of deposit, commercial
paper and inter-bank call money.


Other schemes 
 Tax Saving Schemes 

 Index Schemes 

 Sector Specific Schemes 



KARVY SERVICES – AN OVERVIEW
1. Stock broking
2.Demat services
3. Investment product distribution
4. Investment advisory services
5. Corporate finance & Merchant banking
6.Insurance
7. Mutual fund services
8. IT enabled services
9. Registrars & Transfer agents
10.Loans

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. Demat 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.
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 Products Distribution:

Company is also concern with the distribution of investment products like

(a) Fixed Deposit

(b ) Bonds
(c) IPO
(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.
Company is dealer of following Fixed Deposits Public Sector

1. HUDCO
2 Sardar Sarovar Narmada Nigam Ltd.
3. Tamil Nadu Power Finance Corporation Ltd.
4. NTPC

NON BANKING FINANCE COMPANIES

1. Ashok Leyland Finance Ltd.
2.Bajaj Auto Finance Ltd.
3. Birla Home Finance Ltd.
4. Cholamandalam Investment & Finance Co. Ltd.
5. Escorts Finance Ltd.
6. First Leasing Company of India Ltd.

HOUSING FINANCE COMPANIES

1. Can Find Homes Ltd.
2. Dewan Housing Finance Corporation Ltd.
3. Gruh Finance Ltd.
4. HDFC Ltd.
5. PNB Housing Finance Ltd.
6. Sundaram Home Finance Ltd.
[.Table7: FD of Housing Finance Companies with which Karvy deals]

MANUFACTURING COMPANIES

1 A P Paper Mills Ltd.

2 Amtek India Ltd.
3 Atul Ltd.
4 Ballarpur Industries Ltd.
5 Chambal Fertilizers & Chemicals Ltd.
6 Escort Ltd.
7 Greaves Ltd.
8 Gujarat Alkalies & Chemicals Ltd.
9 Indian Express
10 Ind-Swift Ltd.
11 JK Industries Ltd.
12 Jindal Steel & Power Ltd.
13 Sound Craft Industries Ltd.
14 Supreme Industries Ltd.
15 Zuari Industries Ltd.
[Table8: FD of Manufacturing Companies with which Karvy deals]
(b) Bonds

Bonds provide safety of principal and periodic interest income. They tend to be less
volatile and therefore provide stability. These are fixed income products under less risk
category and are issued by corporate and governments. Bonds add consistency to the
portfolio.
Karvy is dealer of following bonds:

RBI Saving Bonds

NHB
REC

(c) IPO:
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.
4. Investment Advisory Services:
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.

5. Corporate finance & Merchant banking:

Corporate finance is the financial activity of corporation. It deals with the firm's operations with
regard to investing and financing. It concerned with how firms raise capital and the consequences of
alternative methods of raising capital. Firm’s capital can be raised by raising loans, issuing shares,
and acquiring or merging with other businesses by public or private companies.
Merchant banking is a financial intermediation that matches entities that need capital and those that
have capital. Hence they facilitate the flow of capital in the market.
Karvy enjoys SEBI category (I) authorization for Merchant Banking. Karvy offers the full spectrum
of Merchant Banking Services, beginning from identifying the best time for an issue to final stage
of marketing it, to harvest unparalleled success.
As a merchant banker Karvy offer following services:
Issue management
Instrument designing
Pricing of the issue
Registration process for the issue of shares
Marketing efforts
Final allotment to investors
Listing details on stock exchanges
Loan syndication
Lease financing
Corporate advisory services
Underwriting
Portfolio management

Karvy is also dealer of many private life insurance companies. At Jamnagar branch, company is
associated with dealing of following companies:
ICICI Prudential Life Insurance
HDFC Life Insurance
TATA AIG Life Insurance

7. Mutual Fund 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.
15Karvy'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) Alliance Mutual Fund

2) Birla Mutual Fund
3) Bank of Baroda Mutual Fund
4) Can Bank Mutual Fund
5) Chola Mutual Fund
6) Deutsche Mutual Fund
7) DSP Merrill Lynch Mutual Fund
8) Franklin Templeton Investments
9) GIC Mutual Fund
10) HDFC Mutual Fund
11) HSBC Mutual Fund
12) IL & FS Mutual Fund
13) JM Mutual Fund
 14) Kotak Mutual Fund
15) LIC Mutual Fund
16) Punjab National Bank Mutual Fund
17) Prudential ICICI Mutual Fund

18) Principal Mutual Fund

19) Reliance Mutual Fund
20) State Bank of India Mutual Fund
21) Standard Chartered Mutual Fund
22) Sundaram Mutual Fund
23) SUN F&C Mutual Fund
24) Tata Mutual Fund

Investment in Mutual Funds with Karvy

Benefits of Investment with Karvy

 Karvy offers the opportunity to invest in Equity Funds, Balanced Funds, Debt Funds and Tax
saving Funds across 1600+ funds of 30 AMCs.
 Huge Clientele Base
Over 17 Lakh clients have invested in mutual funds with us.
 Easily accessible
Our office network is spread across 29 states and still expanding.
 Economical
We levy no brokerage charges, handling charges, annual maintenance charge or any other hidden
costs for mutual fund transactions.
 Investment Flexibility
With Karvy, you have the options to invest in Lump sum, Systematic Investment Plan (SIP) and
New Fund Offers (NFO) across all segments.

8. 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.

9. Registrars & Transfer agents

In 1985, Karvy entered the Registrar and Share Transfer Business to create a market niche in
the competitive field of financial services. In 1994-95, it reached a milestone when it
processed 104 Public Issues constituting 46 per cent market share. Now in its second decade of
existence, Karvy is the leader in the industry: In an opinion poll conducted by an independent
market research agency - MARG, Karvy has been rated as India’s Most Admired Registrar on
various parameters: -

Overall Excellence.
Handling of Volumes
Timely Dispatch
Quality Management and Technological Up gradation.
A SEBI Category 1 Registrar, So far, Karvy has handled over 675 ISSUES as Registrars to public
issues processed over 52 million applications and is servicing over 16 million investors from
various locations spread over 205 clients.

10. Loan:

Karvy has recently started this service at selected branches of metro cities. This service has not been
started in Saurashtra-Kucch region. Karvy provides loans for following.

Vehicle Loan
Home Loan
Personal Loan
FUND MANAGER
Fund Manager is the person who makes all the investment decisions for the deployment of the
funds of a scheme. Fund manager is responsible for implementing the fund’s investing strategy
and managing its portfolio trading activities.
The fund manager can be an individual or group of individuals. The individuals must have high
educational potentials, professional and managerial experience to justify their responsibilities
as fund manager.
The whole process of investment is relying on investment management function of professionals.
So we can say that quality of fund manager is one of the key factors to consider when analyzing
the quality of particular fund.
In the following chapter we will discuss about strategies opt by the fund manager to manage the
mutual fund portfolio but before that we need to understand the term portfolio management.

PORTFOLIO MANAGEMENT

The art and science of making decisions about investment mix and policy, matching investments to
objectives, asset allocation for individuals and institutions, and balancing risk against performance.

Portfolio management is all about strengths, weaknesses, opportunities and threats in the choice of
debt vs. equity, domestic vs. international, growth vs. safety, and many other tradeoffs
encountered in the attempt to maximize return at a given appetite for risk.
There are two forms of portfolio management: passive and active. Passive management simply
tracks a market index, commonly referred to as indexing or index investing. Active management
involves a single manager, co-managers, or a team of managers who attempt to beat the market
return by actively managing a fund's portfolio through investment decisions based on research and
decisions on individual holdings. Closed-end funds are generally actively managed. We will discuss
these two forms in detail in next chapter.
FUND MANAGEMENT

Actively managed funds:

Actively managed funds are the funds where the fund manager has the flexibility tochoose the
investment portfolio, within the broad parameters of the investment objective of the scheme. This
will increase the role of fund manager.
Fund managers select securities from the universe of possibilities based on research and
judgments on company fundamentals, economic trends and cycles for industries or asset classes.
Investors expect actively managed funds to perform better than the market. For an actively
managed fund, the corresponding index can be used as a performance benchmark.

Actively managed fund styles:

Fund styles usually fall within the following three categories.


Value: The manager invests in stocks believed to be currently undervalued bythe market. 



Growth: The manager selects stocks they believe have a strong potential forbeating the
market.



Blend: The manager looks for a combination of both growth and value stocks.

Passively Managed Funds:

Passively managed funds are relatively easy and safe approach to investing in largesegments of
the market. They are used by less experienced investors as well as professional investors with
large portfolios.
Passive funds invest on the basis of a specified index, whose performance it seeks to track. For
example a passive fund tracking the BSE Sensex would buy only the shares that are part of the
composition of the BSE Sensex and the proportion of each share in the scheme’s portfolio would
also be the same as the weightage assigned to.
The share in the computation of the BSE Sensex. Thus, the performance of these funds tends to
mirror the concerned index. They are not designed to perform better than the market. Such
schemes are also called index schemes. Since the portfolio is determined by the index itself, the
fund manager has no role in deciding on investments. Therefore, these schemes have low
running costs.
That is how an index fund works. The money going into an index fund is automatically invested
proportionately into individual stocks or bonds according to the percentage their market
capitalization represent in the index. For example, if IBM represents 1.7% of the S&P 500 Index,
for every ₹100 invested in the Vanguard 500 Fund, ₹1.70 goes into IBM stock.
 WEALTH MANAGEMENT
1.Private Wealth

Karv y P ri vat e W eal t h i s form ed from t he m erger of t h e erst w hi l e Karvy Private

Clients Group and Financial Planning Group, KarvyP ri vat e W eal t h i s t he W eal t h
M ana gem ent a rm of t he 25 - ye a r-
ol d K A R V Y G r o u p a n d f o c u s e s o n p r o v i d i n g w e a l t h m a n a g e m e n t adviso
ry services to high net worth individuals. Karvy Private Wealth
has al s o acqui r ed w eal t h m ana gem e nt bout i que, P AR K Fi na nci al Advisors, which
has brought in some quality senior management as well as given a kick-start to the business.
Karvy Private Wealth is powered by a talented leadership team. Based out of Mum bai , t he
com pan y has br anch es i n Ban gal ore, C h ennai , Delhi, Goa, Hyderabad, Kolkata,
Hyderabad.

Karvy Private Wealth offers you a wide range of investment options, under one roof. Our offerings
include:
 Equity: We help you with equity ideas and execution. Our equity experts proactively research the
best stocks in the market and help you take informed decision about your investments. Karvy
Private Wealth also offers top-of-the-line Portfolio Management Services for optimized results.
Extensive research enables our wealth managers to offer you breakthrough strategies.
 Debt: At KPW, we offer comprehensive solutions in the fixed income segment. We suggest debt
investment options of various tenures and risk-reward profiles suitable to client portfolio. Choose
from debt mutual funds, bonds, fixed deposits etc that deliver relatively risk-free returns. In addition
to this, our debt portfolio management services enable customers to participate in a wide range of
high-yielding debt securities that are focused towards regular income and capital appreciation.
 Alternate Assets: KPW offers affluent Indians a wide range of Alternative Investment Funds
(AIF). These include non-traditional investments such as venture capital funds and start-up funds,
private equity funds (particularly real estate private equity funds), and hedge funds. Under alternate
assets, we also offer Gold Exchange Traded Funds, Commodities Trading, and International
Investment for Indian residents.
 Real Estate: Through our group concern Karvy Realty (India) Ltd, we assist clients in finding the
right property at the right price. We help you invest in the real estate sector through structured
transactions that can yield effective returns. Our real estate solutions include direct property
purchase of residential property, commercial property and land or plots. Real Estate service is
offered through Karvy Realty (India) Ltd.
 Financing Options: KPW helps clients raise finances for their business and other needs. Financing
can be in the form of mortgages, loan against property, lease rental discounting, and home loan.
Other financing options include promoter funding and loan against shares and securities.
 ADVANTAGES OF WEALTH MANAGEMENT
Karvy through its wealth management company in India offers an array of benefits to its customers.
 Personalized solutions: Our financial advisors work one-on-one with the client to set up a highly
customized investment strategy that considers the various objectives and risks.

 We arrive at a comprehensive solution after a thorough evaluation of the pros and cons. Our
dedicated managers provide you a variety of investment options that are aimed at keeping your
capital secure while delivering returns for the future.
 Cutting edge research: KPW’s in-depth research reports have been widely appreciated by clients.
Our delivery and support modules have been fine-tuned over time. Today, our clients have access to
nline portfolio information, with real-time updates on their portfolios as well as value-added advice
on portfolio churning, sector switches, etc. Moreover, the investment recommendations given by
our research team in the cash market has enjoyed a high success rate.
 International operations: To cater to our NRI clients, we commenced operations in Dubai’s. The
significant Indian diaspora in the Middle East is keen on participating in India’s growth story. We
have a strong team that specialises in offering not only Indian investment products but also local
investment products to these customers
 Widest range of Products: Karvy Private Wealth offers the widest range of products, providing
clients a variety of options all through a single contact point. Products include Equities, Debt
Instruments, Commodities, Mutual Funds, Insurance, Structured Products, Financial Planning, Real
Estate solutions, etc.
 Product-neutral recommendation: KPW’s recommendations are 100% product-neutral and
unbiased because unlike the others, we are neither tied up with any one particular insurance
company nor do we have our own mutual funds.
THE INVESTMENT PROCESS
In this chapter we will discuss the process involved in creating an investment portfolio. This is a
process that is followed by all, individual as well as professional investors. We might say that it is
simple for an individual to constructing his or her own portfolio as compare to a fund manager
with various needs or demands of clients.

Step 1: Understanding the Client

The investment process starts with knowing the investor and understanding his or her needs and
preferences. For a fund manager, the investor is a client and the first and often most significant part
of the investment process is to understanding the client needs, percentage of investment out of
income, client tax status and most importantly, his or her risk preferences. For an individual
investor constructing his or her own portfolio seems to be simpler, but understanding the one’s own
needs and preferences is a difficult task for a fund manager.

The next step in the process is portfolio construction but before we move on that, we need to
understand the strategies opt by the fund manager and the risks associated with those strategies. By
knowing the strategies investor and professionals would be able to properly evaluate performance
and build an effective portfolio of funds.

All strategies have their own ups and down. Since you cannot get return without taking risk. So
let’s have a look on it and try to understand them that they are worth taking in next chapter.
Fig.6.1 Investment process
FUNDAMENTAL RISKS

In this chapter we will discuss some key risks associated with the strategies. Fund manager needs
to understand it to build and manage effective fund portfolio. Here are some key risks:

Concentration risk:
Concentration risk is the risk that an investor will suffer from lack of diversification, investing
too much money in one industry/sector and in one type of security. Funds with a high percentage
of market capitalization are not necessarily riskier than other funds, but they can be. Some
investors invest big amount in single stock and take lot of individual stock risk. For example,
suppose investor A invests his whole amount in Nestle Company he loses his amount because of
fall in market price of share as FSSAI ban Maggi noodles in India. So to avoid such situation
investors would opt diversification in their investment.
Sector risk:
Sector risk is the besides having a lot in a single stock, a sizable weighting in a single sector
runs big risks because sometimes everything in an industry goes in the tank at the same time.
When a fund has more than 30 percent in a sector, it’s courting sector risk. Marsico Focus
(MFOCX) has significant stock risk, but manager Tom Marsico is careful to diversify among
sectors so that
one industry cannot take the fund down. Conversely, a slew of growth funds, including White
Oak (WOGSX) had huge technology weightings in 1999 and was barbecued when the bear
market hit. More recently, Clipper’s (CFIMX) 50 percent weighting in financials hurt it in the
financial meltdown of 2007–2008.

Price risk:
When a stock is trading for a high valuation, disappointing news will spur much larger losses than
one with a low valuation. Essentially high valuation means high expectations. The 2000 to 2002
bear market was all about price risk. You had some sound companies whose stocks were trading
at insane valuations of 75 or 100 times earnings, as though growth were limitless. When their
growth slowed, the stocks got crushed, even though they were still growing faster than most
companies. The further a fund is to the right side of the Morningstar Style Box, the greater the
price risk.
Business risk:
At the heart of every stock fund is the risk that the businesses of the stocks they own will
deteriorate. Some lose their competitive advantage; others see their whole industry collapse.
Managers devote a lot of energy to avoiding these situations, but it happens to even the best
of them.

Market risk:
Stocks and bonds lose money from time to time. That’s how it works, so don’t fire your manager
for losing money in a bear market. Rather, you need to prepare your portfolio for occasional
downturns by staying long - term and diversifying.

Credit risk:
Bond funds with corporate bonds or emerging - markets government bonds are taking on some risk
that the bonds will default. You can see this risk in the fund portfolio’s overall credit rating.
Investment grade runs from BBB to AAA and government. Below BBB are junk bonds. Funds with
credit risk tend to enjoy smooth sailing for a few years, and then there will be a shock to the system
and credit risk will be punished for a year or two before rebounding. In fact, the fear of defaults can
lead to big losses for a fund even if it does not suffer defaults. For example, in 2002, the implosions
of Enron and WorldCom led investors to avoid any corporate bond with any perceived weakness,
and funds with large corporate bond stakes were hit hard. Most of these funds later rebounded to
recoup their losses because the feared defaults did not happen. Still, it illustrates the point that high
- yield funds or any fund with a good chunk of junk bonds are suited for long - term holding periods
even though we tend to think of bond funds as fit for shorter time periods.

Interest - rate risk:

This is the other side of bond fund risks. Interest - rate risk measures the extent to which a fund will
get hit if interest rates rise. We measure this with duration. Typically, the lower the yield and the
longer the maturity, the higher the interest - rate risk. Interest - rate and credit risk are sort of two
sides to a teeter - totter. A junk bond fund has muted interest - rate risk because its yield
compensates you for a pop in interest rates. A long - term Treasury fund has no credit risk but tons
of interest - rate risk, as its low yield is little compensation when rates surge. Too many investors
have made the mistake of thinking a fund with little or no credit risk or have no risk at all.
Liquidity risk:
This is a more arcane concept, but when it does appear, it’s ugly. The problem happens when a fund
manager finds she cannot sell her holdings easily and quickly. A fund with losses can slip into a
terrible downward spiral if its holdings are so illiquid that its losses spur redemptions and then the
redemptions spur more losses because the fund manager has to sell securities at fire - sale prices,
and the cycle gains steam. In March 2008, you could see this happening at Schwab Yield- Plus
(SWYPX), because its net asset value fell every single day, even when similar bond funds were up.
The scary thing is that the fund’s holding were once quite liquid, but the market dried up.

Emerging - markets risk:

Emerging markets have outsized returns and outsized losses because they are based on rickety
economies that work well in some environments but can fall apart in others. Every emerging market
has been through brutal sell - offs. The risks are special because emerging markets tend to have less
dependable rule of law where governments can seize company assets. Consider what the Russian
and Venezuelan governments have done to oil companies that they do not like. Other times, we
have seen emerging markets collapse because they were too dependent on outside financing, and
once that money started to run away it had a domino effect.

Currency risk:
As I am writing this, it does not feel like a risk from here in the heart of the United States. Currency
risk means that if you have money in foreign currencies and they fall against the dollar, you lose
money. Lately, the dollar has been pummeled and that has, been a boon to foreign - stock and
foreign - bond funds, most of which don ’ t hedge their currency exposure. Still there are other
times when the dollar has risen and taken a bite out of foreign - stock investors ’ returns.
Before you invest in a foreign fund, find out if it hedges its currency exposure so you ’ll know
what to expect.

Step 2: Portfolio Construction

The next part of the process is the actual construction of the portfolio, which we divide into three
sub-parts.


The first of these is the decision on how to allocate the portfolio across different asset
classes defined broadly as equities, fixed income securities and real assets (such as real
estate, commodities and other assets). This asset allocation decision can also be framed in

terms of investments in domestic assets versus foreign assets, and the factors driving this
decision.
 
The second component is the asset selection decision, where individual assets are picked
within each asset class to make up the portfolio. In practical terms, this is the step where the
stocks that make up the equity component, the bonds that make up the fixed  income
 component and the real assets that make up the real asset component are selected.

The final component is execution, where the portfolio is actually put together. Here
investors must weigh the costs of trading against their perceived needs to trade quickly.
While the importance of execution will vary across investment strategies, there are many
investors who fail at this stage in the process.

Step 3: Evaluate portfolio performance

The final part of the process, and often the most painful one for professional money managers, is
performance evaluation. Investing is after all focused on one objective and one objective alone, which
is to make the most money you can, given your particular risk preferences. Investors are not forgiving
of failure and unwilling to accept even the best of excuses, and loyalty to money managers is not a
commonly found trait. By the same token, performance evaluation is just as important to the
individual investor who constructs his or her own portfolio, since the feedback from it should largely
determine how that investor approaches investing in the future.
These parts of the process are summarized in Figure 6.1, and we will return to this figure to emphasize
the steps in the process as we consider different investment philosophies. As you will see, while all
investment philosophies may have the same end objective of beating the market, each philosophy will
emphasize a different component of the overall process and require different skills for success.
 FUND MANAGEMENT STRATEGIES

After the making of investment portfolio of mutual fund, there is a need to understand/know how
fund manager maintain it. Now we will discuss four common strategies that are follows to maintain
the portfolio:

1. The Wing it Strategy:

This is the most common mutual fund strategy. Basically, if your portfolio does not have a plan or a
structure, then it is likely that you are employing a wing it strategy to manage your portfolio. Take
the test, if you are adding money to your portfolio today, how do you decide what to invest in? Are
you one that searches for a new investment because you do not like the ones you already have? A
little of this and a little of that? If you already have a plan or structure, then adding money to the
portfolio should be really easy. In my opinion, this strategy will have the least success because
there is little to no consistency.

2. Market Timing Strategy:

The market timing strategy implies the ability to get into and out of sectors or assets or markets
at the right time. The ability to market time means that you will forever buy low and sell high.
Unfortunately few investors buy low and sell high because investor behavior is usually driven by
emotions instead of logic. The reality is most investors tend to do exactly the opposite – buy high
and sell low. This leads me to believe that market timing does not work in practice. No one can
accurately predict the future with any consistency.

3. Buy and Hold Strategy:

This is by far the most commonly preached investment strategy. The reason it is most commonly
preached is that statistical probabilities are on your side. Markets generally go up 75% of the time and
down 25% of the time. If you employ a buy and hold strategy and weather through the ups and downs
of the market, you will make money 75% of the time. If you are to be more successful with
 Other strategies to manage your portfolio, you must be right more than 75% of the time to be
ahead. The other issue that makes this strategy most popular is it is easy to employ. This does not
make it better or worse. It is just easy to buy and hold.

4. Re-Balancing strategy:

Re-balancing is somewhat of a middle ground between market timing and buy and hold. With this
strategy, you will re-visit your portfolio mix from time to time and make some readjustments.
Let’s walk through an oversimplified example using real performance figures.

Let’s say that at the end of 1996, you start with a portfolio of four mutual funds and split
the portfolio into equal weightings of 25% each.

Allocation (₹) Allocation (%)

Fund P ₹25,000 25.0%

Fund Q ₹25,000 25.0%

Fund R ₹25,000 25.0%

Fund S ₹25,000 25.0%

₹100,000 100.0%

Table 1. Portfolio of four mutual funds

After the first year of investing, the portfolio is no longer an equal 25% weighting because some
funds performed better than others.

End balance Allocation

Fund P ₹28,400.00 26.28%

Fund Q ₹26,700.00 24.71%

₹27,125.00 25.10%
Fund R
₹25,850.00 23.92%
Fund S
Table 2. Portfolio of four different funds after one year return
The reality is that after the first year, most investors are inclined to dump the loser (Fund S) for
More of the winner (Fund P). However, the right strategy is to do the opposite to practice sell high,
Buy low. Re-balancing simply means that you sell some of the funds that did the best to buy some
Of the funds that did the worst. Your heart will go against this logic but it is the right thing to do
Because the one constant in investing is that everything goes in cycles. In year 4, Fund P has
Become the loser and Fund S has become the winner.

- 1 Year return

Fund P -16%

Fund Q 22.3%

Fund R 9.6%

Fund S 15.2%

Table 3. Return of four mutual fund for re-balancing

Re-balancing this portfolio year means you would have taken the profits when fund P was
doing well to buy fund S when it was down. In fact if you had re-balanced this portfolio at the
end of every year for 5 years, you would be further ahead as a result of re-balancing.
TEAM MEMBERS
Mr. C. Parthasarathy
Chairman, Karvy Group

Mr. C. Parthasarathy is the Chairman and Managing Director of the diversified financial services
Karvy group. C Parthasarathy (CP as he is better known in the Industry), has the uncanny knack of
staying ahead of the curve and the foresight to spot opportunities that seem invisible on the horizon
for the others. Karvy’s entire history is a case study of turning adversity into opportunity. CP is a
chartered accountant by qualification, whose entrepreneurial energy drove him to co-found Karvy
in 1983 with a less-than-modest capital of Rs 150,000.
Over the years CP’s vision and leadership skills have helped the group navigate through the
turbulent times with a strong sense of purpose and clarity of thought.
CP is one of the pioneers of financial inclusion. Under his leadership Karvy has won numerous
industry awards and accolades. He also is an independent Director in many listed companies.

Mr. M. Yugandhar
Managing Director

Mr. M Yugandhar, Managing Director is a founder member of the KARVY Group. He is a Fellow
Member of the Institute of Chartered Accountants of India and has varied experience in the field of
financial services spanning over 30 odd years.
Yugandhar has helped position and build a strong brand for the group in the registry and other
financial services businesses. The registry business of Karvy is one of its flagship businesses and
with the collaboration with Computershare has grown to become the largest registrar in India for
over two decades. Yugandhar has played a key role in building strong relationships with public
sector banks and other PSUs which has helped Karvy win some important mandates from some of
India’s renowned companies.
Karvy under his guidance has helped create the equity cult and substantially built retail investor
wealth. He is an Independent Director on the board of several reputed companies.
Mr. M. S. Ramakrishna
Director
Mr. M S Ramakrishna, Director, founder member of KARVY GROUP, he is the orchestrator of
technology initiatives such as the call center in the service of the customer.
Mr. Ramakrishna was a member of the Hyderabad Stock Exchange and has more than 30 years of
experience in the financial services arena. He has helped KARVY diversify into the field of
medical transcription leveraging on the company's core competency of transaction processing.

He is an Independent Director on the board of several reputed companies.

MANAGEMENT TEAM
Mr. V.Mahesh
Managing Director, Karvy Data Management
Mr. V Mahesh, is the Managing Director of Karvy Data Management and has work experience
spanning over 2 decades with in depth exposure to operations on most financial services businesses.
Commencing his professional stint with the Registry business where he has to his credit managing
over 300 IPOs and other forms of offerings, he was amongst the first few to work closely on the
Book Building process initiated by SEBI in 1995. After initially working with MCS as an Assistant
Vice President, he moved to Karvy. He was also responsible to initiate the process of setting up the
Depository participant business in Karvy and was responsible for both the operations and the
marketing of the business. He has been nominated by the NSDL to various committees which
addressed key changes to the overall processes and policies for the Demat business.
Nurturing the passion for understanding and interpreting technology and processes, he was
responsible to create and set up the centralized broking platform, centralized back office operations
for all financial products and creating a network of over 500 branches covering over 300 locations
for Karvy. He is also instrumental in creating and launching the Online platform of Karvy Stock
Broking Limited.
He is a Post Graduate in Commerce from University of Madras (M.Com). and also completed Post
Graduate Diploma in Computer Applications.

Mr. V. Ganesh
CEO, Karvy Computershare
Mr. V Ganesh is a Chartered and Cost Accountant by profession and has over 2.5 decades of
experience in the financial services space and is part of Karvy Group’s leadership team. Before
joining KARVY, he was associated with ITC’s risk management and financial audit services
department. Earlier he was associated with Proctor and Gamble and was responsible for product
pricing and financial support functions for P&G’s soaps and health care businesses.
He was instrumental in setting up the Mutual Fund registry business for Karvy. At KARVY, for
over 2 decades, Ganesh has been instrumental in building a strong techno-commercial base with
emphasis on establishing a pan India branch network, back office processing, call center, web
initiatives, online trading, B2B interfaces etc., in the transfer agency and BPO businesses.
Mr. Sushil Sinha
Wholetime Director, Karvy Comtrade

Mr. Sushil Sinha, the Country Head of Karvy Comtrade Ltd, has successfully made Karvy
Comtrade a force to reckon with in the marketplace. With over 10 years of expertise in the broking
sector, he is a well-known face today in the electronic and print media. Under his aegis, the
company has won numerous honours and awards nationwide, including the UTV Bloomberg
Leadership Award 2011 and India’s Best Market Analyst Award—for two consecutive years—by
Zee Business.
Having joined Karvy Comtrade in December 2005 as Senior Manager (Business Development), he
has steadily climbed up the organizational ladder to head the business now. Before joining KCTL,
he worked in Geojit Financial Securities for two years. Prior to that, he had worked with the
Agriculture department in the Government of Jharkhand under various capacities for four years.
A science graduate, Mr. Sinha has completed two MBAs, one majoring in Personnel Management
& Industrial Relations from Patna University and the other in Agri Business Management from
IIPM, Bangalore, a Ministry of Commerce, Government of India institution.
Mr. P. B. Ramapriyan
CEO, Distribution & Allied Businesses
Mr. Ramapriyan is working with Karvy for over 2 decades, He has strength of sorts in the
distribution of Financial products including Equity, Bonds, Fixed Deposits and Auto Finance. He
has successfully marketed several financial products for large number of corporate of various sizes.
He is also responsible for managing the Pan India Network of brokers and sub-brokers. He has been
instrumental in Karvy’s success in distribution of debt products.

Mr. Rajiv R. Singh

CEO, Stock Broking
Mr. Rajiv R. Singh has been associated with Karvy for more than a decade. He joined Karvy in
2001 and moved up the corporate ladder with his sheer dedication, commitment and hard work.
Rajiv, with an enormous experience in finance industry leads the responsibility of all aspects of
Karvy’s equity broking business which includes strategy, revenue generation, business development
and overall customer satisfaction. Rajiv is widely regarded as a results-driven leader who plays a
key role in building the stock broking business of KSBL and make it one of the largest stock
broking houses in the country. Rajiv also plays a key role in identifying skills and motivating staff
in providing outstanding client service.
Rajiv is a Certified Management Accountant–CMA.
Mr. J. Ramaswamy
Group Head, Corporate Affairs
Mr. Ramaswamy, the Group Head for Corporate Affairs, is the official spokesperson for the Karvy
Group. Mr. Ramaswamy has more than 25 years of experience in various spheres of the financial
services industry, of which 10 years has been in the Legal and Secretarial division of Reliance,
handling various public issues, mergers, monitoring performance of various departments, liaising
with regulatory bodies and outside agencies (viz., the stock exchange, SEBI, DCA and others), and
coordinating all the board meetings.
The Corporate Affairs Division is involved in integration and strategic planning of all the business
divisions of Karvy. Mr. Ramaswamy’s job responsibility encompasses monitoring the performance
of all divisions through regular reviews, initiating and implementing new business initiatives,
corporate communication and media relations, acting as official spokesperson for the entire Group,
conceptualizing various policies and procedures to improve the internal work environment, and
working on a parallel platform with the HR department to develop models for raising productivity
and cost-effectiveness. He oversees the international business of Karvy Global Services.

Mr. Deepak Gupta

Group Head, HR
Mr. Deepak Gupta brings with him over 20 years of experience in HR, spanning financial services,
ITes and manufacturing. Prior to joining Karvy, he was Chief People Officer, Human Resources,
with Bajaj Finance Limited, a Rahul Bajaj Group Company, based at Pune. He has also had a
successful career with a few prominent corporate, including SREI, Enam, CRISIL, CEAT Financial
Services and Reliance Industries.
Deepak holds a Master’s degree in Human Resources Development from Jamnalal Bajaj Institute of
Management and a diploma in Business Management and Industrial Relations.

Mr. G. Krishna Hari

Group Head, Finance
Mr. G. Krishna Hari holds a Bachelors degree in Commerce and is associate member of the Institute
of Chartered Accountants of India (ICAI). He has over 27 years of experience in the areas of
finance and accounts functions encompassing fund raising, financial reporting, management
accounting, working capital management, taxation, budgeting and forecasting and financial due
diligence reviews for mergers & acquisitions and investment proposals.
Karvy Awards and Accolades

Karvy Stock Broking Limited

2014
Won the prestigious "NSDL Star Performer Award 2014 for Highest Asset Value". Organized
by the National Securities Depository, the NSDL Star Performers Awards recognize the best
performers in the securities and depositories space. The award ceremony was organized on
Saturday, December 20, 2014, at Taj Coromadel, Chennai. Karvy has won this award consecutively
for last two years.
2010
"Largest E-Broking House in India" at BSE Equity Broking Awards 2010 by Dun &
Bradstreet held in ITC Grand Maratha, Mumbai. This award is based on the study carried out by the
world’s leading provider of business information, knowledge and insight, Dun & Bradstreet in
association with the oldest stock exchange in India, the Bombay Stock Exchange.
The BSE-D&B Equity Broking Awards recognizes the brokerage firms based on the number of
online accounts, volume of online trade, and service delivery of their online trading platform. Karvy
Stock Broking Limited has won this prestigious award for its state of the art, in-house
developed KarvyOnline, a comprehensive online investment platform that enables investors to
invest, anytime from anywhere.
2007
Bagged ace award by receiving the coveted Annual Award for 2006 for "Best CEO, Initiating HR
Practices”, by, the Uttar Pradesh Chapter of National Institute of Personnel Management (NIPM).
The Award has been conferred to Mr. C Parthasarathy, CMD, Karvy Group, for his contribution to
HR practices in Lucknow, organized by UP chapter of NIPM.
2007
"Amity Corporate Excellence" award at the 9th International Business Summit and Research
Conference-INBUSH (International Business Horizon) which was held at a glittering function in
Noida. This award was conferred by Amity International Business School, Noida.
2006
ISTD – "Vivekananda National Award" for Excellence in HRD & Training
2004
"Best Depository Participant in the country" award

Karvy Comtrade Limited

2014
Won the prestigious ZEE Business Award for the "Best Agri. Analyst" 2014 in the fifth edition
of India’s Best Market Analyst Awards on Saturday, 13th Dec. 2014 at The LaLit in Mumbai.
2011
Awarded the "Broker with Best Corporate Desk for Commodity Broking" at the
prestigious Bloomberg UTV Financial Leadership Awards 2011 held in Hotel Taj Landsend,
Mumbai. Hon’ble Finance Minister of India then, Shri. Pranab Mukerjee was the Chief Guest. The
awards have been decided by eminent jury consisting of reputed economists, management &
financial consultants.
Bloomberg UTV Financial Leadership Awards have been instituted to acknowledge the
contribution of the country’s financial champions for extraordinary work done in financial sector.
This award is a reflection of Karvy Comtrade - Corporate Desk’s unparalleled strengths in
providing unique risk management strategies and hedging calculators for Corporates.
Karvy Comtrade’s ability to handle large volumes of trade. efficiently with prompt, accurate and
tailor-made services by a talented pool of professionals ensures that Karvy remains relevant to
client at all times.
2011
Adjudged as the "Best Analyst in Base Metal Category" at the prestigious "Best Market
Analysts Awards 2011" by Zee Business in association with NCDEX (National Commodity &
Derivatives Exchange Limited). The award ceremony was graced with the presence of eminent
dignitaries.
Zee Business Best Market Analyst Awards have been instituted to honour the contributions of
India’s leading financial experts in empowering the retail investors. The Nominations for the
Awards were invited from Commodities & Stock Broking companies and Fund houses and were
being judged on overall returns achieved for the Stocks, Commodities, Sectors and Companies, the
analysts tracked from April 2010 to December 2010.
SWOT Analysis of Karvy

During the project work with the organization, the strength, weaknesses,opportunities and the
threats for the organization can be found out. The SWOTAnalysis of the organization can be
presented as:

Strength

A Corporate Body. Wide product range to enable the clients to choose the best alternative. The best
investment advice correct up to 70 -90 per cent through dedicated research & reports. Lower
Brokerage and other charges with respect to other players. Dedicated, co operative and loyal staff.A
positive image in the existing clients.

Weakness:

Time consuming process of account opening, resolving the problems of the customers.

Opportunities

There is still large market to capture. Presently only 3% of the total investors invest into the equity
market. So the great opportunitiesfor the future. Attract the new clients and retention of the old one
with better services and comparatively low charges. An indirect opportunity generated by the
market from its bullishness. Derivatives and Commodities market are growing. So, there is a great
potential in this field also. And to take this advantage company is coming in this field.

Threats

Decreasing rates of the brokerage in the market. Increasing competition Some changes in the
existing products. Indirect threat of instable stock market.
Competitors of Karvy

1. BAJAJ CAPITAL:
Bajaj Capital was established in 1964 at Delhi. In 1965 it innovates a new financial instrument
‘Companies Fixed Deposits’ and becomes the first company to raise Fixed Deposits. The main
objective of company is to provide professional guidance to investors on where, when and how to
invest and to assist the corporate sector in its resource raising activities
Bajaj Capital provides a number of services to its customers including Buying and Selling of
Money Market Investments, Merchant banking Distribution of financial products and Investment
Advisory Service.
2. MCS Ltd:
It is established in 1985 in Delhi. It is one of the largest Data Processing House employing more
than 600 people. MCS Ltd. has 8 branches all over India. It offers services such as Registrars and
Transfer Agents, Registrars to IPO’s /Right Issues , Registrars to Open Offers , Registrars to Mutual
Funds , Print Shop Services and Data Processing for Airlines
3. N.J. India Investments Pvt Ltd:
NJ India Invest (formerly known as NJ Capital stocks) was started in 1994 to cater to the growing
financial services sector. NJ India Invest evolved out as a client focused need based investment
advisory firm. NJ regards mutual fund as one of the best investment avenue available to satisfy any
kind of investment need.
4. ICICI Securities Ltd:
ICICI Securities Limited 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, these Securities today is India’s leading Investment
Bank and one of the most significant players in the Indian capital markets. It offers Merchant
Banking, Stock Broking, Demat Services
5. HDFC:
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 Demat services, Life Insurance banking services , Housing Finance, Vehicle
Finance Education Loan, Personal Loan, Mutual Fund
6. Kotak Securities Ltd:
Kotak Securities needs no introduction as one of the largest stock broking houses in the country and
a leading distributor of primary market offerings. Kotak Securities limited is a joint venture
between Kotak Mahindra Bank and Goldman Sachs, the international investment banking and
brokerage firm. Kotak Securities is a corporate member of both the BSE and the NSE. It is also a
depository participant with the National Securities Depository Limited (NSDL) for trading and
settlement of dematerialized shares.
It offers services like Stock Broking, Demat Services, Financial Product Distribution and
investment advisory services.
7. Motilal Oswal Securities Ltd:
Motilal Oswal Securities Ltd (MOSt) is one of the leading equity research and broking houses of
India. MOSt has a 20-member research team, which is engaged round the clock in analyzing the
Indian economy and corporate sectors to identify equity investment ideas. Asia Money Broker’s
Poll 2002 has rated MOSt as one of the best Indian broking house, for research, for the second time
since 2000. Motilal Oswal is member of NSDL and CDSIL for DP. It has wide network of
branches. It has 158 branches all over India. Services Offered are Demat Services, Stock Broking
and Investment Advisory Service
 CHAPTER 2

RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Research is a scientific quest for knowledge. It is carefully planned from the unknown to know.
Research can be defined as scientific & systematic search for pertinent information on a specific
topic or investigation or study P.V. Young Defines “Social Research is a systematic method of
discovering the new facts or verifying the old faults, their sequences, inter relationship, casual
explanation and the natural bios which govern them”.Research Methodology deals with the aspects
of how effectively a researcher uses its various steps / methods / techniques. This is so, since for a
successful study, the researcher must conduct it with certain amount of logic behind it, so that
research results are capable of being evaluated either by the researcher / investigator himself or by
others.The Researcher in the current study has tried to describe the research design, enlist the aim &
objectives, and explain the universe for the study, formulate the hypothesis and explain the tools of
sampling, data collection, and finally list out the limitations of the study.

Scope of Study

Since summer internship training is done in Kanpur, so the universe is taken from Kanpur only.This
project will help existing/prospective investors what are the various mode of investment in mtual
fund.
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.
I have used ‘Cross-Sectional Research’ of ‘Exploratory Research’. The research is of both
qualitative as well as quantitative type.

Research Problem

There are several problems associated with capital market investment first issue is lack of expertise.
While investing directly into capital market one has to be analytical enough to judge the evaluation
of the stock and understand the complex under ones of the stock. One needs to judge the right
valuation for the existing stock too. It is very difficult for small investors to keep track of the
movements of the stock. Entrusting the job to experts, who watch the trends of the market and
analyse in identification of stock through dedicated experts in the fields and enables them to pick
stocks at the right moment. Sector funds provided an edge a generate good returns if the particular
sector is doing well. Next problem is that of funds/money. A single person can not invest high
priced stocks for the sole reason that his pocket is not likely to be deep enough. This limits him
from diversifying his portfolio as well as benefiting from multiple investments here again, investing
through mutual fund route enables an investor invest in many good stocks and reap benefits even
through a small investment. This not only diversifies the portfolio and helps in generating return
from a number of sectors but reduces the risk as well. Though identification of the right funds might
not be an easy task, availability of good investment consultants and counselors help investors take
informed decision.

Many people purchase mutual funds because they are a convenient and cost effective method of
obtaining diversifications and professional management. Because mutual funds hold anywhere from
a few securities to several thousand, risk is spread out over a number of investments. However,
despite the existence of mutual funds industry from 1964, only in recent years that arrival of too
many schemes and the downtrend in the market had made the performance of mutual funds not
much superior when compared to its benchmark portfolios. Hence the need arise to study opinion of
investors on various mutual funds.
Results Obtained by using Statistical Tools

1. HYPOTHESIS

Ho: There is no significant difference between the income of the investors and the level of
awareness towards mutual funds.

H1: There is significant difference between the income of investors and the level of awareness
towards mutual funds.

Income Below 1 1-2 2-3 lack 3-4 lack Above 4

lack lack lack
Aware Total
Yes 0 7 31 19 12 69
No 0 6 14 8 3 31
Total 0 13 45 17 15 100

O E (O-E)2 (O-E)2/E
0 0 0 0
7 8.97 3.88 0.43
31 31.05 .00250 0.008
19 18.63 0.13 .0069
12 10.35 0.12 .011
0 0 0 0
6 4.03 3.88 0.96
14 13.95 0.00250 0.00017
8 8.37 0.13 0.015
3 4.653.88 2.72 0.58
Total 2.01

Degree of freedom, n-1= 5-1= 4

Significance level = 0.05

Table value = 9.488

Interpretation: Calculated value is then table value so researcher failed to reject null hypothesis.

There is no significant difference between the income of the investors and the level of awareness
towards mutual funds.

2. HYPOTHESIS

Ho: There is no significant difference between the occupation of the investors and the perception
about lump sum investment vis a vis SIP.

H1: There is significant difference between the occupation of the investors and the perception about
lump sum investment vis a vis SIP.

Occupation Service Profession Business Housewife Retired

Investment Total
Type
SIP 18 17 19 6 10 70
LumpSum 5 4 8 10 9 30
Total 23 21 27 4 19 100

O E (O-E)2 (0-E)2/E
18 16.10 65.61 4.07
17 14.70 5.29 0.35
19 18.90 0.01 0.0005
6 7.00 1.0 0.14
10 13.30 10.89 0.81
5 6.90 3.61 0.52
4 4.83 0.68 0.14
8 6.21 3.20 0.51
4 3.00 1.00 0.33
9 5.70 10.89 1.91
Total 8.78
Degree of freedom, (r-1) (c-1) = (2-1) (6-1) = 5.

Significance level = 0.05

Table value = 11.070

Interpretation: Calculated value is less than tabulated value so researcher failed to reject null
hypothesis.

There is no significant difference between the occupation of the investors and the perception
about lump sum vis a vis SIP.

Samlping 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.

Sampling Technique

I have used Convenient method of sampling.

Population size

Population size was 500.

Sample size

The final number of respondents from which questionnaire is filled is 100.

Method of Data Collection:

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

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
Sample Extent: Kanpur City

Data collection Tools

I have used ‘Structured Questionnaire’ for gathering the required data through contacting
respondent personally.
I have collected Fact, Awareness, Attitude, Future action plan and reason using questionnaire.
Type of Questions:
‘Close-ended questions’ or ‘Dichotomous’ and ‘Multiple Choice’ types are asked in the
questionnaire for data collection

Tools of Data Analysis

Statistical tool:
a. Correlation test
b. Frequency test
Procedure for Analysis
 Administering questionnaire to all the employees
1. Simple frequency test (mean & standard deviation)
2. Correlation
Method Of Presentation of Data

The data has been presented with the help of charts and tables.

Method of Organization of Data

Data has been organized through inductive method.

 CHAPTER 3

FINDING AND INTERPRETATION

 DATA ANALYSIS

Statistics

Age

N Valid 50

Missing 0

Mean 2.4800

Median 2.0000

Mode 2.00

Age

Frequency Percent Valid Percent Cumulative Percent

Valid Less than 22 2 4.0 4.0 4.0

22 – 35 28 56.0 56.0 60.0

35 – 50 14 28.0 28.0 88.0

Above 50 6 12.0 12.0 100.0

Total 50 100.0 100.0

Interpretation:From the above graph we can say that 56 percent respondents fall
under22-35 year and 14 percent respondents fall under 35-50 years of
age.
 Statistics

Occupation

N 50

Missing 0

Mean 1.92

Median 2.00

Mode 1

Occupation

Frequency Percent Valid Percent Cumulative Percent

Valid Private Job 23 46.0 46.0 46.0

Government Job 11 22.0 22.0 68.0

Business 13 26.0 26.0 94.0

Others 3 6.0 6.0 100.0

Total 50 100.0 100.0

Interpretation:From the above graph we can say that 46 percent
respondentshave private job and 26 percent respondents
have their own business and rest are engaged in government
and others.
 Statistics

Annual Income

N Valid 50

Missing 0

Mean 2.2000

Median 2.0000

Mode 2.00

Annual Income

Cumulative
Frequency Percent Valid Percent Percent

Valid Less than 2.5 lacs 11 22.0 22.0 22.0

2.5 - 5 lacs 21 42.0 42.0 64.0

5 - 8 lacs 15 30.0 30.0 94.0

More than 8 lacs 3 6.0 6.0 100.0

Total 50 100.0 100.0

Interpretation:From the above graph we can say that 42 percent
respondentsfall under 2.5-5 lacs and 36 percent respondents
fall under 5-8 lacs and rest are fall in 2.5 and above 8 lacs
category.
 Statistics

Are you interested

Are you planning to Do you have any in mutual fund
Save investment plan investment

N Valid 50 50 50

Missing 0 0 0

Mean 1.00 1.4200 1.3200

Median 1.00 1.0000 1.0000

Mode 1 1.00 1.00

Are you planning to save

Frequency Percent Valid Percent Cumulative Percent

Valid Yes 50 100.0 100.0 100.0

Interpretation:From above graph we can say that the all respondents planning
tosave.
 Do you have any investment plan

Frequency Percent Valid Percent Cumulative Percent

Valid Yes 29 58.0 58.0 58.0

No 21 42.0 42.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say that 58 percent respondents

areinterested in investment plan and rests are not interested in investment
plan.
 Are you interested in mutual fund investment

Frequency Percent Valid Percent Cumulative Percent

Valid Yes 34 68.0 68.0 68.0

No 16 32.0 32.0 100.0

Total 50 100.0 100.0

Interpretation:From the above graph we can say that 68 percent respondents outof
total respondents are interested in mutual fund investment.
 Statistics

Preferable period of Primary goal of

Investment Anticipation of risk Investment

N Valid 50 50 50

Missing 0 0 0

Mean 1.5400 1.8400 2.2400

Median 2.0000 2.0000 2.0000

Mode 2.00 2.00 1.00

Preferable period of investment

Frequency Percent Valid Percent Cumulative Percent

Valid Short term 23 46.0 46.0 46.0

Long term 27 54.0 54.0 100.0

Total 50 100.0 100.0

Interpretation:From the above graph we can say that 54 percent student
preferlong term investment and rest 46 percent prefer short
term investment.
 Anticipation of risk

Frequency Percent Valid Percent Cumulative Percent

Valid Minimum 18 36.0 36.0 36.0

Moderate 22 44.0 44.0 80.0

Maximum 10 20.0 20.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say that 44 percent and 36

percentrespondents anticipate moderate and minimum risks
respectively and rest of respondents anticipate maximum risk.
 Primary goal of investment

Cumulative
Frequency Percent Valid Percent Percent

Valid Retirement benefit 21 42.0 42.0 42.0

Education 8 16.0 16.0 58.0

House 9 18.0 18.0 76.0

Other 12 24.0 24.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say that 42 percent respondents investfor

retirement benefit and 24 percent respondents for other purpose and rest of
other respondent for house & education purpose.
 Statistics

Do you
Do you feel Do you feel Do you feel Do you feel Do you feel feel real
Do you mutual fund Equity debt gold silver estate
feel FD is investment is investment is investment investment is investment investment
more More More is more more is more is more
profitable Profitable Profitable profitable profitable profitable profitable

N Valid 50 50 50 50 50 50 50

Missing 0 0 0 0 0 0 0

Mean 2.8800 2.8000 2.8600 2.9600 2.7600 2.9800 2.3400

Median 3.0000 3.0000 3.0000 3.0000 3.0000 3.0000 2.0000

Mode 2.00 2.00 2.00 2.00 3.00 3.00 2.00

Do you feel FD is more profitable

Frequency Percent Valid Percent Cumulative Percent

Valid Agree 22 44.0 44.0 44.0

Neutral 12 24.0 24.0 68.0

Disagree 16 32.0 32.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say 44 percent respondents agree
thatFD is more profitable and 32 percent respondents disagree and
rest 24 percent is neutral towards FD.
 Do you feel mutual fund investment is more profitable?

Frequency Percent Valid Percent Cumulative Percent

Valid Agree 24 48.0 48.0 48.0

Neutral 12 24.0 24.0 72.0

Disagree 14 28.0 28.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say 48 percent respondents agree thatMutual

Fund is more profitable and 28 percent respondents disagree and rest 24
percent is neutral towards Mutual Fund.
 Do you feel equity investment is more profitable?

Frequency Percent Valid Percent Cumulative Percent

Valid Agree 20 40.0 40.0 40.0

Neutral 17 34.0 34.0 74.0

Disagree 13 26.0 26.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say 40 percent respondents agree thatEquity

investment is more profitable and 34 percent respondents disagree and rest 26
percent is neutral towards Equity investment.
 Do you feel debt investment is more profitable?

Frequency Percent Valid Percent Cumulative Percent

Valid Agree 19 38.0 38.0 38.0

Neutral 14 28.0 28.0 66.0

Disagree 17 34.0 34.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say 38 percent respondents agree thatDebt

investment is more profitable and 34 percent respondents disagree and rest 28 percent is
neutral towards Debt investment.
 Do you feel gold investment is more profitable

Frequency Percent Valid Percent Cumulative Percent

Valid Agree 20 40.0 40.0 40.0

Neutral 22 44.0 44.0 84.0

Disagree 8 16.0 16.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say 40 percent respondents agree thatGold

investment is more profitable and 16 percent respondents disagree and rest 44 percent is
neutral towards Gold investment.
 Do you feel silver investment is more profitable

Frequency Percent Valid Percent Cumulative Percent

Valid Agree 15 30.0 30.0 30.0

Neutral 21 42.0 42.0 72.0

Disagree 14 28.0 28.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say 30 percent respondents agree thatsilver

investment is more profitable and 28 percent respondents disagree and rest 42
percent is neutral towards Silver investment.
 Do you feel real estate investment is more profitable

Frequency Percent Valid Percent Cumulative Percent

Valid Agree 33 66.0 66.0 66.0

Neutral 17 34.0 34.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say 66 percent respondents agree thatreal estate
investment is more profitable and rest 34 percent is neutral towards real estate
investment.
 Statistics

In which kind of mutual

How do you know about Where from you fund would you like to
mutual fund purchase mutual fund Invest

N Valid 50 50 50

Missing 0 0 0

Mean 1.9200 1.6200 1.5600

Median 2.0000 2.0000 2.0000

Mode 2.00 2.00 2.00

How do you know about mutual fund

Frequency Percent Valid Percent Cumulative Percent

Valid Advertisement 17 34.0 34.0 34.0

Peer Group 20 40.0 40.0 74.0

Fund Advisors 13 26.0 26.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say 40 percent respondents know aboutMutual
Fund from peer group and 34 percent respondents from advertisement and rest 26
percent from fund advisors.
 Where from you purchase mutual fund

Frequency Percent Valid Percent Cumulative Percent

Valid AMC 19 38.0 38.0 38.0

Brokers 31 62.0 62.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say 62 percent respondents purchaseMutual

Fund from brokers and rest 38 percent from AMC.
 In which kind of mutual fund would you like to invest

Frequency Percent Valid Percent Cumulative Percent

Valid Public 22 44.0 44.0 44.0

Private 28 56.0 56.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say 56 percent respondent wants to buyPrivate

Mutual Fund and rest 44 percent wants public mutual funds.
 Statistics

When you invest

in mutual fund Percentage of How would you What factors do
which mode of return that you like to receive you consider Which mutual
investment do would expect returns every before choosing fund scheme
you prefer from investment Year an investment have you used

N Valid 50 50 50 50 50

Missing 0 0 0 0 0

Mean 1.4800 2.3800 2.4000 2.6200 3.5800

Median 1.0000 2.0000 3.0000 3.0000 4.0000

Mode 1.00 2.00 3.00 3.00 1.00

When you invest in mutual fund which mode of investment do you prefer

Cumulative
Frequency Percent Valid Percent Percent

Valid One Time Investment 26 52.0 52.0 52.0

Systematic Investment Plan 24 48.0 48.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say 52 percent respondents prefer onetime
investment mode of payment when they buy Mutual and 48 percent respondents
prefer systematic investment plan for mutual fund.
 Percentage of return that you would expect from investment

Frequency Percent Valid Percent Cumulative Percent

Valid 10 - 15% 31 62.0 62.0 62.0

15 - 20% 19 38.0 38.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say 62 percent respondents expect 10-15% return
and rest 38% respondents expect 15-20% return from investment.
 How would you like to receive returns every year

Cumulative
Frequency Percent Valid Percent Percent

Valid Dividend payout 9 18.0 18.0 18.0

Dividend Re-investment 12 24.0 24.0 42.0

Growth in NAV 29 58.0 58.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say 58 percent respondent wants growth in

NAVas return in Mutual Fund and 24 percent respondent wants dividend
reinvestment and rest 18 percent wants dividend payout.
 What factors do you consider before choosing an investment

Cumulative
Frequency Percent Valid Percent Percent

Valid Safety of investment principle 7 14.0 14.0 14.0

Liquidity 13 26.0 26.0 40.0

Opportunity for steady growth 22 44.0 44.0 84.0

Other factor 8 16.0 16.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say 44 percent respondent considers steady growth
intheir investment and 26 percent respondents consider liquidity and 14 percent
consider safety of principle amount and rest 16 percent consider other factors.

Which mutual fund scheme have you used

Frequency Percent Valid Percent Cumulative Percent

Valid Open Ended 15 30.0 30.0 30.0

Growth fund 9 18.0 18.0 48.0

Liquid fund 4 8.0 8.0 56.0

Mid Cap 11 22.0 22.0 78.0

Large Cap 11 22.0 22.0 100.0

Total 50 100.0 100.0

Interpretation:From above graph we can say 30 percent respondents used open ended and
22percent respondent used both large & mid cap each and 18 percent respondents
used growth fund and rest 8 percent used liquid fund.
CAPTER 4

FINDINGS
FINDING AND INTEPRITATION

 In my study I found that all the respondents planning to save and it is good as far as consider in
the present scenario. And around 58 percent respondents have their own investment plan and
around 68 percent respondents are interested in mutual fund investment. 


 I also found that around 54 percent respondents prefer long term investment & rest prefer short
term investment and there are 44 percent respondents who anticipate moderate risk and 36
percent favored minimum risk however there are 20 percent respondents who anticipate high
risk. 


 My study also shows that 40 percent respondents know about mutual fund from their peers and
out of total respondents 62 percent purchase mutual fund from brokers and 38 percent from
asset management companies. 


 I also found that 56 percent respondent wants to buy private mutual fund and around 52
percent respondent prefer one time investment and 48 percent prefer systematic investment
plan. 


 The study also shows that 62 percent respondents expect around 10-15 percent return from
their investment and 58 percent respondent wants return in the form of increase in net assets
value (NAV). 


 In the study it is also found that 30 percent respondent uses open ended schemes and around 22
percent respondent wants to invest in large-cap and mid-cap companies each. 


 I also found that 48 percent respondent says that mutual fund is profitable option for
investment and 44 percent respondents consider a steady growth in investment value as an
important factor while making any investment. 

After getting in depth research study of Karvy, I came to know that Karvy is not much popular as
other brands operating in Kanpur city. Bajaj Allianz, HDFC, ICICI are having much higher tapped
market in respect to mutual funds.

• Karvy as an investment option in Mutual Fund does not possess much proficiency and potential
customers in Allahabad city. Though the financial advisors advise their clients to go for Mutual Fund
as a investment option. About 42% of advisors advise their clients to invest in Mutual Funds, followed
by investing in Insurance sector.

• The advisors after having a deep thought says that it is the Returns that make them convince their
clients to go for investment in mutual funds. 36% of advisors said that it is the Returns which make a
person to invest in Mutual Fund. Followed by Risk which is quite lesser in other investment options.
• A huge lott of advisors showed a positive response in dealing of for Mutual Fund. About 60% of
them said that they are interested in dealing for Mutual Funds, because that results in higher
brokerage.

• As far as Karvy is concerned about 91% of the advisors said that they are not aware of the services
provided by Karvy, including Mutual Fund.

• When asked, 53% of advisors said that they are not interested to work with Karvy Securities, to the
contrary with they don’t have any such expansion plans and they have little knowledge anoutKarvy.

• In Kanpur city advisors don’t have an appropriate knowledge about Karvy as a Investment hub.

In my study I found that all the respondents planning to save and it is good as far as consider in the
present scenario. And around 58 percent respondents have their own investment plan and around 68
percent respondents are interested in mutual fund investment. 


 I also found that around 54 percent respondents prefer long term investment & rest prefer short
term investment and there are 44 percent respondents who anticipate moderate risk and 36
percent favored minimum risk however there are 20 percent respondents who anticipate high
risk. 


 My study also shows that 40 percent respondents know about mutual fund from their peers and
out of total respondents 62 percent purchase mutual fund from brokers and 38 percent from
asset management companies.

 I also found that 56 percent respondent wants to buy private mutual fund and around 52
percent respondent prefer one time investment and 48 percent prefer systematic investment
plan. 

 The study also shows that 62 percent respondents expect around 10-15 percent return from
their investment and 58 percent respondent wants return in the form of increase in net assets
value (NAV). 


 In the study it is also found that 30 percent respondent uses open ended schemes and around 22
percent respondent wants to invest in large-cap and mid-cap companies each. 

I also found that 48 percent respondent says that mutual fund is profitable option for investment
 LIMITATION

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

 Data Analysis and interpretation done may not be that strong due to small sample and

‘Convenience Sampling Method’.

 The sample extent for research is only Kanpur City.

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

 My experience research area might have affected result.

 Due to restriction to enter into some of the departments at KARVY STOCK BROKING LTD.

 I could not cover some of the aspects required for my study.

 Interaction with the company executive was limited due to their busy schedule.

 The information collected is mainly primary data and the accuracy is subject to the responses

received.

CONCLUSION
 After studying and analyzing following thing can be concluded:

 Portfolio management strategies in mutual fund would help the investor to reduce the risks
without sacrificing returns. 
 Analyzing the level of risks associate with the strategies help the individual and fund manager
to create and maintain effective portfolio. 
 Small time investors can adopt the buy and hold investment strategy to invest in equities,
which although volatile in nature, give favorable long run returns. 
 Diversified portfolio helps the investor to reduce the chance of facing loss and have offered
superior long term inflation protection. 
 Incurring losses as a consequence. So investors need to be more consistent and disciplined
in their investment choice. Investors without proper knowledge of market switch from one
strategy to another creating transactions cost and 
 Mutual Fund Advisors 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
advisors regarding services.
 The awareness level of investor is low in advisors are interested in dealing in mutual fund.
 Very less advisors are knowing about services provided by Karvy.
 CHAPTER 5

RECOMMENDATION

RECOMMENDATION
 For increasing the return in short term investment Active management style should be used
because we can continuously checked and revised the portfolio as per the current market
situation and take corrective measures. 
 There is need to increase the awareness of benefits of making investment in mutual fund to rise
the investment in mutual fund sector. 
 To increase the level of return from investment investor needs to diversify their portfolio to
manage the risk. 
 To increase the number of people making investment we need to promote systematic investment
plan (SIP) since even the lower income group can make investment and get good return by small
savings. 
 For risk averse investors it is good that they are investing in large-cap companies and those who
are less risk averse should go for mid-cap companies to increase their return on investment or
net asset value.
 There is high potential market for Mutual Fund Advisors in Allahabad city, but this market
needs to be explored as investors are still hesitated to invest their money in Mutual Funds.

 In Allahabad 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 advisors 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.
CHAPTER 6

ANNEXURE
 QUESTIONNAIRE

Stock portfolio management strategies

1. Name:

2. Age
i. Less than 22 ii. 22 – 35
iii. 35 – 50 iv. Above 50

3. Occupation
i. Private Job ii. Government Job

iii. Business iv. Others

4. Annual Income
i. Less than 2.5 lacs ii. 2.5 to 5 lacs

iii. 5 to 8 lacs iv. More than 8 lacs

5. Are you planning to save?

i. Yes ii. No

6. Do you have any investment plans?

i. Yes ii. No

7. Are you interested in stock ?

i. Yes ii. No

8. Preferable period of investment?

i. Short term ii. Long term

9. Anticipation of risk.
i. Minimum ii. Moderate iii. Maximum
10. Primary goal of your investment?
i. Retirement Benefit ii. Education

iii. House iv. Other

Q. Which of the following investment do you feel more profitable?

Rate these at five point Likert scale where:

1- StronglyAgree 2- Agree 3- Neutral 4- Disagree 5- Strongly Disagre

11 How do you come to know about stock ?

i. Advertisement ii. Peer Group

iii. Fund Advisors iv. Other

12. Where from you purchase stock ?

i. AMC ii. Brokers

iii. Other Sources

13. In which kind of stock you would like to invest?

i. Public ii. Private

14. When you invest in stock which mode of investment do you prefer?

i. One Time Investment ii. Systematic Investment Plan

15. Percentage of return that you are expecting from investment.

i. 5 – 10% ii. 10 - 15%

iii. 15 – 20% iv. Above 20%

16. How would you like to receive the returns every year?

i. Dividend payout ii. Dividend Re-investment

iii. Growth In NAV
17. What factors do you consider before choosing an investment?

i. Safety of investment principle ii. Liquidity

iii. Opportunity for steady growth iv. Other factor

18. Which mutual fund scheme have you used?

i. Open Ended ii. Close Ended

iii. Growth Fund iv. Liquid Fund
v. Mid Cap vi. Large Cap
vii Other
 BIBLIOGRAPHY

 https://www.mutualfundstore.com/index-funds-management 

 http://www.investopedia.com/terms/p/passivemanagement.asp 

 Rajesh R. Duggimpudi (UK), Hussein A. Abdou (UK), Mohamed Zaki (UK),
Investment Management and Financial Innovations, Volume 7, Issue 4, 2010 

 http://www.karvy.com 

 http://www.bankrate.com/finance/investing/common-investment-strategies-of-fund-
managers 

 http://klc.karvy.com/Presentations/functional/Concepts 

 http://webpage.pace.edu/pviswanath/notes/investments/portconstr.html 

 http://www.economywatch.com/investment/investment-strategy.html 