india bulls

Summer Internship Project

INDIABULLS

FUND MANAGEMENTAnkit Jain

FUND MANAGEMENT

Submitted in partial fulfillment of BBA program

2008-11

Submitted byName : ANKIT JAIN

Roll Number: 22

Company Guide Faculty GuideName : Mr TAPAN BAISWAL Name: Mrs Seema

ChaudaryDesignation, Company :

Bharati Vidyapeeth University Institute of Management And Research

New Delhi

June 2010

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PREFACE

This is to certify that Mr Ankit Jain, a student of Bachelor of Business Administration has

worked in the Finance and accounts division of Indiabulls Financial Services Ltd, under the able

guidance and supervision of Mr. Manish Gupta Assistant Manager at Indiabulls Financial

Services Ltd

The period for which he was on training was for 8 weeks, starting from 5th May 2010 to 30th June

2010. This Summer Internship report has the requisite standard for the partial fulfillment of

bachelor of business administration. To the best of our knowledge no part of this report has been

reproduced from any other report and the contents are based on original research.

Signature Signature(Company Guide) (Student)

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ACKNOWLEDGEMENT

I have to thank Bharati Vidyapeeth University for giving me an opportunity to

undertake my project work and for giving me knowledge in the field of finance

during my three years course.

I would sincerely like to thank Mr. Manish Gupta (Assistant Manager) also my

company guide who provided me the right opportunity and environment to learn.

Special thanks to Mr. Tapan Baiswal ( Manager- Finance) under whose able

leadership and training I could grasp the essence of the mutual funds.

Without the support and guidance of my faculty Guide Ms. Seema Chaudary. I

could have failed to notice some of the criticalities and key areas of operation in

this project. She has been an inspiration factor in this project to get more

information and make this project more meaningful.

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TABLE OF CONTENTS

CHAPTER NO.

TOPIC PAGE NO.

1.EXECUTIVE SUMMARY 6

2COMPANY’S PROFILE 7

3COMPANY INTRODUCTION: About Indiabulls

8

4SWOT ANALYSIS 21

5MUTUAL FUNDS

Types of funds28

6 Where Indiabulls invest surplus cash 46

7 Questionnaire 48

9CONCLUSION 51

11 BIBLIOGRAPHY 52

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EXECUTIVE SUMMARY

The management had to depend upon certain relevant information for taking various

strategic decisions. The information is made useful by its analysis and interpretation. My

project was related to “Fund Management”.

This project report is the outcome of my six weeks live project in Indiabulls. This project

has been divided into the following chapters-

MUTUAL FUNDS

How to choose right type of mutual scheme

Types of Funds

- Debt Equity Funds

- Equity Funds

- Balanced Funds

Fixed Deposits

Gold Coins

Treasury Bills

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HISTORY

Indiabulls Group is one of the top business houses in the country with business interests in Real Estate, Infrastructure, Financial Services, Retail, Multiplex and Power sectors. Indiabulls Group companies are listed in Indian and overseas financial markets. The Net worth of the Group exceeds USD 2 billion. Indiabulls has been conferred the status of a “Business Superbrand” by The Brand Council, Superbrands India.

Indiabulls Financial Services is an integrated financial services powerhouse providing Consumer Finance, Housing Finance, Commercial Loans, Life Insurance, Asset Management and Advisory services. Indiabulls Financial Services Ltd is amongst 68 companies constituting MSCI - Morgan Stanley India Index. Indiabulls Financial is also part of CLSA’s model portfolio of 30 Best Companies in Asia. Indiabulls Financial Services signed a joint venture agreement with Sogecap, the insurance arm of Societé Generale (SocGen) for its upcoming life insurance venture. Indiabulls Financial Services in partnership with MMTC Limited, the largest commodity trading company in India, is setting up India’s 4th Multi-Commodities Exchange.

Indiabulls Real Estate Limited is India’s third largest property company with development projects spread across residential projects, commercial offices, hotels, malls, and Special Economic Zones (SEZs) infrastructure development. Indiabulls Real Estate partnered with Farallon Capital Management LLC of USA to bring the first FDI into real estate. Indiabulls Real Estate is transforming 14 million sqft in 16 cities into premium quality, high-end commercial, residential and retail spaces. Indiabulls Real Estate has diversified significantly in the following business verticals within the real estate space: Real Estate Development, Project Advisory & Facilities Management: Residential, Commercial (Office and Malls) and SEZ Development. Power: Thermal and Hydro Power Generation.

Indiabulls Securities Limited is India’s leading capital markets company with All-India Presence and an extensive client base. Indiabulls Securities possesses state of the art trading platform, best broking practices and is the pioneer in trading product innovations. Power Indiabulls, in-house trading platform, is one of the fastest and most efficient trading platforms in the country. Indiabulls Securities

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Limited is the first and only brokerage house to be assigned the highest rating BQ - 1 by CRISIL.

How the idea was conceived?

Sameer Gehlaut, Rajiv Rattan and Saurabh Mittal, all friends got together to start

the company. For some years they worked in the oil field service industry. The

idea to start their own outfit on a technology platform was born in 1999 when

Gagan Banga joined the three IIT-Delhi engineers who promoted the company.

The idea was to target the huge untapped retail segment of the market. The first

task of course was to work out a sound business model, which was sustainable and

profitable. They soon realized the implicit strength of their model.

Around the middle of 1999, the core promoters had got together and acquired a

shut down broking firm from its promoters at that time. The whole idea was to get

a broking license from the stock exchange and a membership of the stock

exchange.

The 3 promoters got together and took over a defunct broking company Orbis

Securities- the whole idea was to get a broking license and a membership of the

stock exchange. This broking firm was restarted and it started making miniscule

amount of revenue for the company – it basically catered to the HNIs - High Net

worth Individuals. Immediately after this the venture capitalists were contacted.

In this there were several models, which were discussed including a strategic

investor. Initially the company was promoted as a dotcom company. The

promoters chose the famous Charles Schwab model, which perfectly addressed

their need to have the business on a technology platform. Indiabulls has been

profitable in every financial year beginning 2000-01 the only financial year it has

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not been profitable is 1999-2000. The company also enjoyed the first mover

advantage, as at that time there was no company catering to the needs of retail

segment through Internet.

PROMOTERS AND THEIR BACKGROUND

The company was established by three engineers from IIT Delhi -

Mr. Sameer Gehlaut, Founder & Chairman:

Sameer, aged 30 years, graduated with a Mechanical Engineering Degree from the

Indian Institute of Technology, Delhi. He was one of the three engineers who was

selected by Halliburton to work for its international services business in the year

1995 and worked in many countries during his tenure there. He gained experience,

learned international best practices and imbibed professional work culture at

Halliburton, which he brought to Indiabulls Group as one of the founders of the

company. He has gained extensive experience in the Financial Services Sector and

developed in-depth knowledge and strong understanding of all aspects of the

Securities Industry and Financial Services Business.

Mr. Rajiv Rattan, Promoter & Director:

Rajiv, aged 31 years, an NTSE Scholar, graduated with an Electrical Engineering

Degree from the Indian Institute of Technology, Delhi. He was the only engineer

selected by Schlumberger to work for its international services business in the year

1994 and worked in many countries during his tenure there.

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Mr. Saurabh Mittal , Promoter & Director:

Saurabh, aged 30 years, graduated with an Electrical Engineering Degree from the

Indian Institute of Technology, Delhi and was declared the best graduating student

in 1995. He was one of the engineers selected by Schlumberger to work for its

international services business in the year 1995.

Building of the business empire

The promoters managed to stitch together an initial seed capital of Rs One crore to

start Indiabulls in 2000.Indiabulls had toyed with the idea of having a strategic

investor and then decided against the same India bulls used three rounds of funding

to start and expand the business. It raised Rs 10 crore from venture capitalists like

LN Mittal Internet Ventures and Transatlantic Corporation in February 2000. In

May 19, 2000 the Indiabulls website was launched and simultaneously the rollout

of the offices in the major cities like Delhi, Bombay took place.

Indiabulls was the second brokerage firm to be granted permission to conduct

online trading on Indian stock exchanges. The challenge was to change the mindset

of investors to move from the traditional form of stock trading to a completely

online interface.

It then raised an additional Rs 10 crore from the Infinity Venture Fund and existing

investors in November 2000. Indiabulls has created an infrastructure to provide

investors from all over the globe with real-time, 24-hour access to all information

and products. Called the Indiabulls Professional Network, it offers real-time prices,

details data and news, and provides intelligent analysis of trading trends and

electronic trading capability. It is aimed at the smart investor.

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The company has grown to become one of the largest retail brokerages in the

country with daily trading volumes of Rs 800 crore. An estimated 70,000 trades

take place on the Indiabulls online network and it has an estimated customer base

of 43,000 clients.

VISION

To be the largest financial services organization in Indian retail market and become

a one stop shop for all non banking financial products and services for the retail

customer.

MISSION

o Rapidly increase the number of our client relationships to clear market

leader

o Provide our clients with a very broad array of product offering

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Financial Strength of the company

Income Statement

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Consolidated Balance Sheet

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INDIABULLS PHILOSOPHY : YOU COME FIRST

“We have created a unique organization that is designed for you – the Smart Investor – We passionately believe in the Smart Investor who wants to make his own educated investment choices and demands world class access to a full range of services andProducts ranging from Equities to Insurance combined with the highest level of integrity, service and professionalism.”

Indiabulls is a full service investment firm offering clients access to a tremendous range of financial services from 135 locations across 95 cities. They have over 1000 Client Relationship Managers focused on serving unique needs. Their world-class infrastructure, built with tens of crores of investment, provides clients with real-time service, multi-channel & 24/7 accesses to all information and products. They have been guided by one underlying philosophy: You come first.

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Indiabulls Professional Network offers real time prices, equity analysis, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your fingertips. This powerful technology is complemented by knowledgeable and customer focused Relationship Managers who are available to help with financial planning and investment needs.

QUALITY POLICY

To achieve and retain leadership, Indiabulls shall aim for complete customer

satisfaction, by combining its human and technological resources, to provide

superior quality financial services. In the process, Indiabulls will strive to

exceed Customer’s expectations.

QUALITY OBJECTIVES

As per the Quality Policy, Indiabulls will:-

o Build in-house processes that will ensure transparent and harmonious

relationships with its clients and investors to provide high quality of

services.

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o Establish a partner relationship with its investor service agents and vendors

that will help in keeping up its commitments to the customers.

o Provide high quality of work life for all its employees and equip them with

adequate knowledge & skills so as to respond to customer’s needs.

o Continue to uphold the values of honesty & integrity and strive to establish

unparalleled standards in business ethics.

o Use state-of-the art information technology in developing new and

innovative financial products and services to meet the changing needs of

investors and clients.

o Strive to be reliable source of value-added financial products and services

and constantly guide the individuals sand institutions in making a judicious

choice of same.

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9

Brand Recognition & Customer Satisfaction

• Extensive product range

• Enhanced customer experience

• Personalised service through relationship managers

• Understands local market dynamics

• Expanding geographical and online presence

What Indiabulls OffersWhat Indiabulls OffersWhat Customers ExpectWhat Customers Expect

Wide range of services under one roofWide range of services under one roof

24 Hour Support & Ease of access24 Hour Support & Ease of access

Personalized AttentionPersonalized Attention

16,45530,498

79,932108,324

178,800

330,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Mar-03 Mar-04 Mar-05 Jun-05 Dec-05 Jun-06

Increasing Number of CustomersIncreasing Number of Customers

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INDIABULLS HIGH GROWTH AREAS

Promotion criteria in INDIABULLS.

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INDIABULLSINDIABULLS

Securities & Derivatives Broking

Commodities Platform

Financial Products Distributions

New Business Development – Real Estate, Mining, etc

Power Business

Secured & Share Financing

Retail Store

Indiabulls and Customer Relationship

Indiabulls is serious about maintaining relations with their customers and that is

why they have appointed relationship managers within their premises to offer best

and delightful services to their customer.

I came to know how the Indiabulls maintain the professional and friendly

relationship with the customers even when the condition is worse.

I willingly gave customers every suggestion they wanted with the help of my

seniors.

Customers were taken care of in each and every way and also their queries were

answered. The customers were delighted by the services offered by the Indiabulls.

Indiabulls gives facility to open the demat account for the people by sending

our executives to their home. Any complaint\suggestion from the customer will be

immediately taken into consideration.

In this way people get hassle free services by us and we are the people who

understand the value of their precious time.

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SWOT ANALYSIS OF INDIABULLS

STRENGTH

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o Indiabulls is India’s leading Financial Services and Real Estate company

having over 640 branches across India.

o Indiabulls serves the financial needs of more than 4,50,000 customers with

its wide range of financial services and products from securities, derivatives

trading, depositary services, research& advisory services, consumer secured

& unsecured credit, loan against shares and mortgage & housing finance.

o Having around 4000 Relationship Managers, Indiabulls helps its clients to

satisfy their customized financial goals.

o Continued focus on potential high growth areas.

o Relationship Manager Facilities is too good from another competitor.

o Online trading platform

o Personal relationship manager who assist the clients in share trading.

o No annual maintenance charges

o No custodial charges

o It does not keep any condition as to collect minimum amount of brokerage from its clients.

o Equity analysis report to support the investment decision of its clients.

o Trading via branch network, telephones & Internet account i.e. both online & offline.

o Strong market presence & increased market share leading to a virtuous cycle of growth & profitability.

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o The incentive model is created such that it leads to generation of higher revenue for the organization. This acts as a motivating factor for the employees to perform well.

o An added advantage of Indiabulls is it’s strong brand name, which helps it’s sales force to sell the products.

o Technology transforming desktop into NEAT like terminal for Internet trading.

o Real time online transfer fund & exposure updating facility with HDFC, CITI Bank & ICICI Bank.

WEAKNESSES

o High Turnover Rate

o Need to spend more to create good relationship with customers

o High D.P. Charges (Depositary Participant charges)

o It should have its own mutual funds i.e. Indiabulls as of now does not have its own mutual funds, instead of providing advices in mutual funds it should have its own mutual funds.

o It should provide tips via training sessions and SMS.

o Commodities are not traded online (MCX – multi channel exchange, Ncdex –national commodity derivative exchange of India Ltd.).

o It does not provide with the indices of major world markets, ADR prices of Indian scripts.

o Unlike some of its competitors like ICICI, HDFC Bank & Kotak, Indiabulls does not provide a complete catalogue of financial services (e.g. Banking facility)

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o Due to continuous need to meet the targets, some of the relationship managers crack under pressure & thus leave the organization.

o There is no limit to the maximum number of clients that a relationship manager can handle. This affects the level of service provided to the clients who are not the volume traders.

Growing interest of people in share market

o ADR & GDR have issued to trade in foreign markets

o Financial Services like banking

o The Capital market in the last few years has turned out to be one of the favorable avenues for the retail investors. This is due to the performance of the Indian industry in various sectors and the economy in general. Even the future outlook looks promising.

o Scope of online trading on BSE

o Indiabulls have tied up with other third party companies to sell their products. Due to high client base of Indiabulls, there exists an opportunity to cross sell these products in the market.

o Market seems favorable for commodities trading. Indiabulls should choose to enter this segment it may prove to be a profitable venture.

OPPORTUNITIES:-

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o Brand Recognition & increasing no. of customer’s through customer satisfaction.

o Companies like Share khan, ICICI Direct, Kotak, & private brokers are major threats to Indiabulls.

o Local brokers capable of charging lower brokerage.

o Industry competitors vying for the same target segment.

o Changes in SEBI guidelines & other tax implications.

o Increasing No. of branches all over India.

THREATS

o More increase in competition (There are many brokerage firm’s entering into market)

o Competitor’s product price is low in comparison to India Bulls products

o Deals only in share market (secondary)

o Companies like Share khan, ICICI Direct, Kotak , & private brokers are major threats to Indiabulls.

o Local brokers capable of charging lower brokerage.

o Industry competitors vying for the same target segment.

o Changes in SEBI guidelines & other tax implications.

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LONG TERM INVESTMENT VS SHORT TERM INVESTMENT

Long Term investments and funds are investments a company intends to hold for more than one year. They can consist of stocks and bonds of other companies, real estate, and cash that has been set aside for a specific purpose or project. In addition to investments a company plans to hold for an extended period of time, Long Term Investments also consist of the stock in a company's affiliates and subsidiaries.

The difference between Short Term and Long Term investments lie in the company's motive for owning them. Short term investments consist of stocks, bonds, etc. a company has bought and will sell shortly. The investments made under long term investments may never be sold. An excellent example would be Berkshire Hathaway's relationship with Coca-Cola. Berkshire owns 200 million shares of the soft-drink giant, and will most likely continue to hold them forever, regardless of the price they are selling for in the open market

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INVESTMENT INSTRUMENTS

The most important points an investor must take into consideration before setting his objectives is his risk appetite, returns expectations, investment horizon and liquidity. Look on investment instruments depending on the differing objectives of investors

Instruments Risk Return Investment Horizon Liquidity

Bank Deposits Low Low 30 - 365 days Moderate

Company Deposits Low to High Low-High 1 - 3 years Low

RBI Bonds Low Moderate 5 years Low

Government Securities Low Moderate Above 1 year Moderate

Liquid funds Low Low 1 - 3 months High

Income funds Moderate Moderate 6 months - 1 year High

Gilt funds Moderate Moderate 1 year High

Equity funds High High 1-3 years High

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MUTUAL FUNDS

Mutual Funds

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Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund

Mutual Fund Operation Flow Chart

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ORGANISATION OF MUTUAL FUND

Why do one need to invest in a Mutual Fund

Flexibilty Mutual Fund investments also offers you a lot of flexibility with features such as systematic investment plans ,systematic withdrawal plans & dividend reinvestment

AffordabilityThey are available in units so this makes it very affordable. Because of the large corpus, even a small investor can benefit from its investment strategy.

LiquidityIn open ended schemes ,you have the option of withdrawing or redeeming your money at any point of time at the current NAV

Diversification

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Risk is lowered with Mutual Funds as they invest across different industries & stocks.

Professional Management Expert Fund Managers of the Mutual Fund analyse all options based on experience & research

Potential of returnThe fund managers who take care of your Mutual Fund have access to information and statistics from leading economists and analysts around the world. Because of this, they are in a better position than individual investors to identify opportunities for your investments to flourish.

Low Costs The benefits of scale in brokerage, custodial and other fees translate into lower costs for investors

Regulated for investor protection The Mutual Funds sector is regulated to safeguard the investor's interests SEBI regulated market:

All Mutual Funds are registered with SEBI and function within the provisions and regulations that protect the interests of investors. AMFI is the supervisory body of the Mutual Funds industry

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TYPES OF FUNDS

There are a wide variety of Mutual Fund schemes that cater to the needs, The different types of Mutual Funds are as follows:

Diversified Equity Mutual Fund SchemeA mutual fund scheme that achieves the benefits of diversification by investing in the stocks of companies across a large number of sectors. As a result, it minimizes the risk of exposure to a single company or sector.

Sectoral Equity Mutual Fund SchemeA mutual fund scheme which focuses on investments in the equity of companies across a limited number of sectors -- usually one to three.

Index FundsThese funds invest in the stocks of companies, which comprise major indices such as the BSE Sensex or the S&P CNX Nifty in the same weightage as the respective indice.

Equity Linked Tax Saving Schemes (ELSS)Mutual Fund schemes investing predominantly in equity, and offering tax deduction to investors under section 80 C of the Income Tax Act. Currently rebate u/s 80C can be availed up to a maximum investment of Rs 1,00,000. A lock-in of 3 years is mandatory.

Monthly Income Plan SchemeA mutual fund scheme which aims at providing regular income (not necessarily monthly) to the unitholder, usually by way of dividend, with investments predominantly in debt securities (upto 95%) of corporates and the government, to ensure regularity of returns, and having a smaller component of equity investments (5% to 15%)to ensure higher return.

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Income schemesDebt oriented schemes investing in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments.

Floating-Rate Debt FundA fund comprising of bonds for which the interest rate is adjusted periodically according to a predetermined formula, usually linked to an index.

Gilt Funds These funds invest exclusively in government securities.

Balanced FundsThe aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. They generally invest 40-60% in equity and debt instruments.

Fund of FundsA Fund of Funds (FoF) is a mutual fund scheme that invests in other mutual fund schemes. Just as fund invests in stocks or bonds on your behalf, a FoF invests in other mutual fund schemes

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HOW TO CHOOSE RIGHT MUTUAL FUND SCHEME

Mutual Fund investment decisions require consistent effort on the part of the investor. Before investing in Mutual Funds, the following steps must be given due weightage to decide on the right type of scheme:

1. Identifying the Investment Objective2. Selecting the right Scheme Category3. Selecting the right Mutual Fund4. Evaluating the Portfolio

CHOOSE THE RIGHT MUTUAL FUND

Fund Type Objective Ideal tenure ReturnsRisk

Factor

Equity Fund Short-term gainsMore than one year

25-20% High

Debt/Income FundConsistent returns Capital building

1 to 2 years 14-10% Low

Liquid FundsShort-term cash management

20 days to 3 months

11-8% Very Low

Gilt FundsConsistent returns Low risk

6 months to 1 year

12-9% Very Low

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A) Identifying the Investment Objective

The financial goals will vary, based on age, lifestyle, financial independence, commitments, level of income and expenses, among many other factors. Therefore, the first step is to assess the needs.

B) Selecting the scheme category

The next step is to select a scheme category that matches investment objectives:

For Capital Appreciation go for equity sectoral funds, equity diversified funds or balanced funds.

For Regular Income and Stability should opt for income funds/MIPs For Short-Term Parking of Funds go for liquid funds, floating rate funds,

short-term funds. For Growth and Tax Savings go for Equity-Linked Savings Schemes.

Investment Objective

Investment horizon

Ideal Instruments

Short-term Investment

1- 6 months Liquid/Short-term plans

Capital Appreciation

Over 3 years Diversified Equity/ Balanced Funds

Regular Income Flexible Monthly Income Plans / Income Funds

Tax Saving 3 yrs lock-in Equity-Linked Saving Schemes (ELSS)

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C) Selecting the right Mutual fund

Once the strategy is clear in mind, choose which Mutual fund and scheme want to invest in. The offer document of the scheme tells its objectives and provides supplementary details like the track record of other schemes managed by the same Fund Manager. Some important factors to evaluate before choosing a particular Mutual Fund are:

The track record of performance over last few years in relation to the appropriate yardstick and similar funds in the same category.

How well the Mutual Fund is organized to provide efficient, prompt and personalized service.

The degree of transparency as reflected in frequency and quality of their communications.

D) Evaluation of portfolio

Evaluation of equity fund involve analysis of risk and return, volatility, expense ratio, fund manager’s style of investment, portfolio diversification, fund manager’s experience. Good equity fund should provide consistent returns over a period of time. Also expense ratio should be within the prescribed limits. These days fund house charge around 2.50% as management fees.

Evaluation of bond funds involve it's assets allocation analysis, return's consistency, it’s rating profile, maturity profile, and it’s performance over a period of time. The bond fund with ideal mix of corporate debt and gilt fund should be selected

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DEBT FUNDSThese funds invest mainly in floating rate securities whose coupons are reset periodically, based on a predetermined benchmark. Floating Rates are expected to deliver superior risk adjusted return during the period of volatility and hardening of interest rates

Top 10 Floating Rate Debt Funds

Templeton Floating Rate Income Fund – STPAn open-end income scheme

Fund Objective:

The primary objective of the scheme is to provide income consistent with the prudent risk from a portfolio comprising primarily of floating rate debt instruments. The fund managers strive to minimise the risk arising from interest rate fluctuations.

Birla Floating Rate Income Fund – STPAn open-ended income scheme

Fund Objective:

To generate regular income through investment in a portfolio comprising substantially of floating rate debt/money market instruments. The Scheme may invest a portion of its net assets in fixed rate debt securities and money market instruments.

Deutsche Floating Rate FundAn open-ended income scheme

Fund Objective:

An open ended floating rate scheme with the objective to provide income consistent with the prudent risk from a portfolio comprising substantially of floating rate debt instruments, fixed rate debt instruments swapped for floating rate returns, and also fixed rate instruments and money market instruments.

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Grindlays Floating Rate Fund – LTP An open-ended income scheme

Fund Objective:

GFRF is an open-ended income scheme seeking to generate stable returns with a low risk strategy by creating a portfolio that is substantially invested in good quality floating rate dent or money market instruments, fixed rate debt or money market instruments swapped for floating returns and fixed rate debt and money market instruments.

HDFC Floating Rate Income Fund – LTPAn open-ended income scheme

Fund Objective:

To generate regular income through investment in a portfolio comprising substantially of floating rate debt/money market instruments, fixed rate debt/money market instruments swapped for floating rate returns and fixed rate debt securities and money market instruments.

HDFC Floating Rate Income Fund – STPAn open-ended income scheme

Fund Objective:

To generate regular income through investment in a portfolio comprising substantially of floating rate debt/money market instruments, fixed rate debt/money market instruments swapped for floating rate returns and fixed rate debt securities and money market instruments.

Prudential ICICI Long Term Floating Rate Plan – Plan BAn open-ended income scheme

Fund Objective:

To generate income consistent with the prudent risk from a portfolio comprising substantially of floating rate debt instruments, fixed rate debt instruments swapped for floating rate return and also fixed rate instruments and money market instruments.

Templeton Floating Rate Income Fund – LTP

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An open-end income scheme

Fund Objective:

The primary objective of the scheme is to provide income consistent with the prudent risk from a portfolio comprising primarily of floating rate debt instruments. The fund managers strive to minimise the risk arising from interest rate fluctuations.

Birla Floating Rate Income Fund – LTPAn open-ended income scheme

Fund Objective:

To generate regular income through investment in a portfolio comprising substantially of floating rate debt/money market instruments. The Scheme may invest a portion of its net assets in fixed rate debt securities and money market instruments.

EQUITY FUNDS

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A Mutual Funds Scheme that achieves the benefits of diversification by investing in the stocks of companies are called Equity Mutual Funds. This results in lowering of the risk of exposure to a single company or sector.

Top 10 Equity Funds

Tata Growth Fund

Fund Objective:

To provide income distribution and / or medium to long-term capital gains while at all times emphasising the importance of capital appreciation.

Birla Advantage Fund

Open Ended Growth Scheme

Fund Objective:

To achieve long-term growth of capital at relatively moderate levels of risk through a diversified research based investment approach.

DSP ML Equity Fund


Fund Objective:

The DSP ML Equity Fund is a open-ended growth scheme seeking to generate long-term capital appreciation, from a portfolio which is substantially constituted of equity and equity related securities of issues domiciled in India.The Scheme may also invest a certain portion of its corpus in debt and money market securities, in order to meet liquidity requirements from time to time.

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HDFC Equity Fund

Open Ended Equity Growth Scheme

Fund Objective: To achieve capital appreciation.

DSP ML TOP 100 Equity Fund


Fund Objective:

The Scheme seeking to generate capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of the 100 largest corporate by market capitalisation, listed in India. The Scheme may also invest a certain portion of its corpus in debt and money market securities in order to meet liquidity requirements from the time to time.

Franklin India Bluechip Fund

Open Ended Equity Scheme

Fund Objective:

The Fund Manager seeks steady and consistent growth by focusing on well established large sized companies. Aims to provide medium to long term capital appreciation

HDFC Growth Fund


Fund Objective:

To generate long-term capital appreciation from portfolio that is invested predominantly in equity and equity related instruments.

HDFC TOP 200 Fund


Fund Objective:

To generate long-term capital appreciation from a portfolio of equity and equity-linked instruments primarily drawn from the companies in BSE 200 Index.

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Prudential ICICI Discovery Fund


Fund Objective:

To generate returns through a combination of dividend income and capital appreciation by investing primarily in a well-diversified portfolio of value stocks. Value stocks are those, which have attractive valuations in relation to earnings or book value or current and/or future dividends.

Prudential ICICI Growth Fund


Fund Objective:

The Scheme seeks to generate long-term capital appreciation for you from a portfolio made up predominantly of equity and equity related securities.

Prudential ICICI Power Fund


Fund Objective:

To generate capital appreciation by actively investing inequity and equity related securities. For defensive considerations, the scheme may invest in debt, money market instruments, to the extent permitted under there gulations. The AMC will have the discretion to completely or partially invest in any of the type of securities stated above so as to maximize the returns.

Reliance Growth Fund

Open Ended Equity Growth Scheme

Fund Objective:

The primary investment objective of the Scheme is to achieve long-term growth of capital by investing in equity and equity related securities through a research based investment approach.

Sundaram India Leadership Fund

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Fund Objective:

To achieve capital appreciation by investing in select stocks of companies which meet criteria of 'leaders' intheir respective sectors/subsectors. The leaders are identified as the top two/three companies in any sector/subsector in terms of net revenue or total income.

Sundaram Select Focus Fund


Fund Objective:

To achieve capital appreciation by investing in very few select stocks.

ABN AMRO Equity Fund


Fund Objective:

The investment objective of the Scheme is to generatelong-term capital growth from a diversified and actively managed portfolio of equity and equity related securities.The Scheme will invest in a range of companies, with a bias towards large & medium market capitalisation companies.

BALANCED FUNDS

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The aim of Balanced Funds is to provide both growth and regular income. Such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. They generally invest 40-60% in equity and the rest in debt instruments

Top 8 Balanced Funds

Birla Balance Fund

Open Ended Balance Scheme

Fund Objective:

An Open-ended Balanced Scheme with an objective to balance income requirements with long-term growth of capital at relatively moderate levels of risks through a diversified research based investment approach.

DSP ML Balanced Fund


Fund Objective:

The DSP ML Balanced Fund is an open-ended balanced scheme seeking to generate long-term capital appreciation and current income from a portfolio constituted of equity and equity related securities as well as fixed income securities (debt and money market securities).

FT India Balanced Fund


Fund Objective:

The Scheme seeks to provide long term growth of capital and current income. The fund manager seeks to strike an optimum balance between growth and stability, by maintaining a diversified portfolio of equities and managing interest rate movements and credit risk on the fixed income component

HDFC Balanced Fund

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Fund Objective:To generate capital appreciation along with current income from a combined portfolio of equity & equity related and debt & money market instruments.

HDFC Prudence Fund


Fund Objective:

To provide periodic returns and capital appreciation over a long period of time from a judicious mix of equity and debt investments with an aim to prevent/minimizes any capital erosion.

Prudential ICICI Balance Fund


Fund Objective:The Scheme seeks to provide you a mix of long-term returns and regular income.

Sundaram Balanced Fund


Fund Objective:To generate capital appreciation and current income,through a judicious mix of investments in equities and fixed income securities.

Tata Balanced Fund


Fund Objective:To provide income distribution and / or medium to long term capital gains while at all times emphasizing the importance of capital appreciation.

Where Indiabulls Invest Surplus Cash?

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In Indiabulls proper planning is done on daily basis. For this, there business development team & finance team sit together to decide the optimum level of investment to be done in a particular account. Whenever cash in hand or the bank balance in any account exceeding the optimum level determined by the finance team the funds get invested in the Shares & securities as well as in Mutual funds (Reliance Liquidity Fund – Daily Dividend Reinvestment Option).

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CASH SURPLUSCASH SURPLUS

MUTUAL

FUNDSMUTUAL

FUNDSFIXED DEPOSITFIXED DEPOSIT

RELIANCERELIANCE

LOTUSLOTUS

HDFCHDFC

KOTAKKOTAK

LICLIC

SBISBI

YES BANKYES BANK

ICICI BANKICICI BANK

PUNJAB NATIONAL BANK

PUNJAB NATIONAL BANK

HDFC BANKHDFC BANK

AXIS BANKAXIS BANK

PUBLIC SECTOR UNDERTAK

ANNEXURE

ANNEXURE 1

Questionnaire for data collection.

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ICICIICICI

Dear respondent, your valuable time and effort in filling this questionnaire are

highly appreciated. The information collected through this questionnaire will be

used for acedemic purpose only.

Name: - _______________________________________

Age: - 18-40 40-60

60 and above

Occupation: -

Service Business

Profession Others

Part 1: Decisions.

Given below some considerable situations that will be helpful for you as an

investor to decide what is the right time and the amount for making an investment

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in a particular equity. Mark your consent as per your preferences.

Decision least agree strongly

Disagree

1 2 3 4 5

1. Investment decision is based on advice from the broker

2. I invest in shares on personal analysis.

3. I prefer to do intraday trading rather than taking the holding of shares.

4. I invest in the mid cap rather than small or large cap.

5. I look for the market conditions before look on the investment options.

Section 2: Factors affecting equity primary and secondary market investment.

What are the factors that you consider the most before making an investment in the equity market?

Factors Preferability

a) Company profile

b) Rate of return

c) market price

d) liquidity in the trade

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e) secondary market situation

f) lead managers image

g) regulatory environment

Part 3: Revival measures

What important measures need to be undertaken to strengthen equity market investment?

a)

b)

c)

d)

CONCLUSION

However, many instruments have long lock-in periods in excess of one year and, therefore, cannot be considered in the short run. “Low-risk companies should invest at least 70 per cent of his portfolio in liquid funds,"

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Liquid funds are better than bank fixed deposits as there is more liquidity. In case of a bank FD, company lose some interest if they break it before maturity. Also, liquid funds are more tax-efficient

Today, many companies have started seeing mutual funds as the best way to invest in debts. They see debts as a safest option as compared to bank fixed deposits. Firstly because debt funds are more transparent than any other form of investment — the investor is aware where his money is being used. Secondly, debts are less risky than equities though the returns from the latter are more. Besides regular and steady income, debt funds are also known for easy liquidity without the risk of volatility

The short-term investment option (20 days to three months) help INDIABULLS put their idle surplus funds in debt market to earn interest. Returns range from 8-11 per cent, depending upon the condition of the money market.

Bibliography

www.indiabulls.com

http://info.shine.com/company/Indiabulls-Financial-Services-Ltd/165.aspx

http://www.moneycontrol.com/stocks/cptmarket/compsearchnew.php?fname=price&companyname

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http://www.moneycontrol.com/india/stockpricequote/financegeneral/indiabullsfinancialservices/21/22/profitloss/marketprice/IFS03

Business Standard, Mumbai

Financial Express

Indian Express

http://trackyourstock.com/indiabullsdemerger

http://findarticles.com/p/articles/mi_m0HWW/is_34_3/ai_66678800/pg_4/

http://www.stockwatch.in/indiabulls-financial-services-ready-set-amc-2514

http://www.financialexpress.com/news/indiabulls-financial-services/114449/2

http://en.wikipedia.org/wiki/Porter_generic_strategies

http://en.wikipedia.org/wiki/Porter_generic_strategies

http://www.moneycontrol.com/stocks/marketstats/indcomp.php?optex=BSE&indcode=Finance%20-%20General

ICFAI Publishing Press

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india bulls

Documents

local brokers capable

electrical engineering degree

bank fixed deposits

fixed rate instruments

industry competitors vying

achieve capital appreciation

fixed income securities

interest rate fluctuations