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ASTUDYONINVESTORPERCEPTIONTOWARDSMUTUALFUNDS

AProjectReportsubmittedinpartialfulfillmentoftherequirementFortheawardofthedegreeof

MASTEROFBUSINESSADMINISTRATION

BYSANJEETKUMARSAH

SRMUNIVERSITYSCHOOLOFMANAGEMENT


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MUTUALFUND

TABLEOFCONTENT

CHAPTERNO.

CONTENT

PAGENo.

CHAPTER:-1

1.INTRODUCTION:a.Introductionofmutualfundb.Opportunity&challenges.c.Mutualfundindustryinindiad.Typesofmutualfunde.Advantagesofmutualfundf.Basisofselectiong.Constituentofmutualfundh.Marketingstrategyi.Marketsegmentj.Marketingoffunds&challenges.k.SEBIguidelines2.1CompanyprofileProductprofile2.2Objectiveofstudy2.3Scopeofstudy2.4Limitationofstudy2.5Researchmethodology2.6Literaturereview

CHAPTER:-2

CHAPTER:-3

3.3DataAnalysis

CHAPTER:-4

4.1Findings4.2Suggestion4.3ConclusionBibliography

CHAPTER:-5

CHAPTER:-6

QUESTIONNIRE

SRMUNIVERSITY[SCHOOLOFMANAGEMENT]


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MUTUALFUND

LISTOFTABLES

Tableno.

Tablename

Pageno.

IIIIIIIVVVIVIIVIIIIXXXIXIIXIIIXIVXVXVIXVIIXVIII

OccupationwiseclassificationIncomewiseclassificationSavingsAwarenessofmutualfundInvestmentchoiceChoicetoinvestReasontoinvestInvestmentamountPreferredfundinmutualfundAwarenessofSTANDARDCHARTEREDmutualfundInvestmentinSTANDARDCHARTEREDmfReasontoselectSTANDARDCHARTEREDmutualfundAttractingattributesofSTANDARDCHARTEREDmfNosofschemesinvestedbyrespondentsInvestmentinothermfschemeChoiceotherthanSTANDARDCHARTEREDMFSuggestiontoothersSuggestedbenefits



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MUTUALFUND

LISTOFFIGURES&CHARTS

Serialno1234567891011121314151617181920212223

FIGURES&CHARTSNAMEFlowchartofworkingofmutualfundConceptofmutualfundClassificationofmutualfundAdvantageofmutualfundMutualfundconstituentsOccupationwiseclassificationIncomewiseclassificationSavingsAwarenessofmutualfundInvestmentchoiceChoicetoinvestReasontoinvestInvestmentamountPreferredfundinmutualfundAwarenessofSTANDARDCHARTEREDmutualfundInvestmentinSTANDARDCHARTEREDmfReasontoselectSTANDARDCHARTEREDmutualfundAttractingattributesofSTANDARDCHARTEREDmfNosofschemesinvestedbyrespondentsInvestmentinothermfschemeChoiceotherthanSTANDARDCHARTEREDMFSuggestiontoothersSuggestedbenefits

Pageno



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MUTUALFUNDINTRODUCTION

a)MUTUALFUNDMutualFundsrefertofundswhichcollectmoneyfrominvestorsandputthismoneyinstocks,bondsandothersecuritiestogainfinancialprofit.PersonswhosemoneyisusedbytheMutualFundManagertobuystocks,bondsandothersecurities,getapercentageoftheProfitearnedbythemutualfundinreturnoftheirInvestments.Inthisway,themutualfundoffersbenefittobothparties.AMutualFundisatrustthatpoolsthesavingsofanumberofinvestorswhoshareacommonfinancialgoal.Themoneythuscollectedistheninvestedincapitalmarketinstrumentssuchasshares,debenturesandothersecurities.Theincomeearnedthroughtheseinvestmentsandthecapitalappreciationrealizedissharedbyitsunitholdersinproportiontothenumberofunitsownedbythem.ThusaMutualFundisthemostsuitableinvestmentforthecommonmanasitoffersanopportunitytoinvestinadiversified,professionallymanagedbasketofsecuritiesatarelativelylowcost.Theflowchartbelowdescribesbroadlytheworkingofamutualfund.

Fig:-1Amutualfundisaprofessionallymanagedtypeofcollectiveinvestmentschemethatpoolsmoneyfrommanyinvestorsandinvestsitinstocks,bonds,short-termmoneymarketinstruments,and/orothersecurities.Themutualfundwillhaveafundmanagerthattradesthepooledmoneyonaregularbasis.Currently,theworldwidevalueofallmutualfundstotalsmorethan$26trillionThemutualfundorganizationearnsprofitbyusingpeople smoneyforinvestmentandthepe

rsonswhoinvestinmutualfundacquirefinancialProfitwithoutgoingintointensive



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MUTUALFUNDanalysisandresearchonbondsandstocks.TheworkofstockandbondMarketAnalysis,MarketResearchandMarketSpeculationisdonebythemutualfundmanagers.ThepeoplewhoinvestinMutualFundsaregenerallyexposedtomuchlowerRiskcomparedtothosewhodirectlyinvestinbondsandstocks.MutualFundInvestmentinvolveslowerRiskastheinvestmentisdiversifiedintodifferentbondsandstocks.So,ifatanytimeMarketValueofoneparticularbondorvalueofthestocksofanyparticularcompanydrops,thenthelossincurredbythemutualfundcanbeoffsetbytheMarketGainofanyotherbondorstocks.

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b)OPPORTUNITYOFMUTUALFUND:OpportunitiesofMutualFundsaretremendousespeciallywheninvestmentisconcerned.ForanyindividualwhointendstoallocatehisassetsintoproperformsofinvestmentandwanttodiversifyhisInvestmentPortfolioaswellastherisks,MutualFundscanbeprovedasthebiggestopportunity.InvestorsgetalotofadvantageswiththeMutualFundInvestment.Firstly,theyarenotrequiredtocarryonintensiveresearchanddetailedanalysisonStockMarketandBondMarket.ThisworkisdonebytheFundMangersoftheInvestmentManagementCompanyonbehalfoftheinvestors.Infact,theprofessionalFundManagerswhohandlethemutualfundsofanyparticularcompanyareabletospeculatethemarkettrendmorecorrectlythananycommonindividual.GoodSpeculationaboutthetrendsofstockpricesandbondpricesleadstorightallocationoffundsintherightstocksandbondsresultingingoodRateofReturns.InvestorsalsogettheadvantageofhighLiquidityofthemutualfunds.Thismeanstheinvestorscanenjoyeasyaccesstothefundsinvestedinthemutualfundswhenevertheyrequirethemoney.Whentheinvestorsinvestinanymutualfund,theyaregivensomeequitypositioninthatfund.Theinvestorscananytimeselltheirmutualfundsharestogetbackthemoneyinvestedinmutualfunds.TheonlythingisthattheRateofReturnthattheywillgetmaynotbefavorableasthereturndependsonthepresentmarketcondition.Thegreatestopportunitythatthemutualfundsofferistheopportunityofdiversifyingtheirinvestments.InvestmentDiversificationactuallydiversifiestheRiskassociatedwithinvestment.Thisisbecause,ifatatime,ifpricesofsomestocksaredeclining,deceasing

theValueofInvestment,pricesofsomeotherstocksandbondsmaytendtoriseandinthiswaythelossofthemutualfundisoffsetbythestrengthofthestockswhosepricesarerising.Asallthemutualfundsdiversifytheirinvestmentsinvariouscommonstocks,preferredstocksanddifferentbonds,therisktobebornebytheinvestorsarewelldiversifiedandinothertermslowered.



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MUTUALFUNDCHALLENGESFACINGMUTUALFUND:-

Peoplefindmutualfundinvestmentsomuchinterestingbecausetheythinktheycangainhighrateofreturnbydiversifyingtheirinvestmentandrisk.But,inrealitythisscopeofhighrateofreturnsisjustonesideofthecoin.Ontheotherside,thereistheharshrealityofhighlyFluctuatingRateofReturns.Thoughthereareotherdisadvantagesalso,thisconcernoffluctuatingreturnsismostpossiblythegreatestchallengefacedbythemutualfund.

TheIssueofFluctuatingReturnsInspiteofbeingadiversifiedinvestmentsolution,mutualfundsinvestmentinnowayguaranteesanyreturn.Ifthemarketpricesofmajorsharesandbondsfall,thenthevalueofmutualfundsharesaresuretogodown,nomatterhowdiversifiedthemutualfundportfoliobe.ItcanbesaidthatmutualfundinvestmentissomewhatlowerriskythanDirectInvestmentinstocks.But,everytimeapersoninvestsinmutualfund,heunavoidablycarriestheriskoflosingmoney.

DiversificationorOverDiversification-Inordertodiversifytheinvestment,manytimesthemutualfundcompaniesgetinvolvedinOverDiversification.Theriskofholdingasinglefinancialsecurityisremovedbydiversification.But,incaseofoverdiversification,investorsdiversifysomuchthatmanytimetheyendupwithinvestinginfundsthatarehighlyrelatedandthusthebenefitofriskdiversificationisruledout.

Taxes-Everyyear,mostofthemutualfundssellsubstantialamountoftheirholdings.Iftheyearnprofitbythissell,thentheinvestorsreceivetheProfitIncome.Formostofthemutualfunds,theinvestorsareboundtopaytaxesontheseincomes,eveniftheyreinvesttheincome.

Costs-MostofthemutualfundschargeShareholderFeesandFundOperatingFeesfrom

theinvestors.Intheyear,inwhichmutualfundfailstomakeprofitandtheinvestorsgetnoreturn,thesefeesonlyblowupthelosses.



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MUTUALFUNDfundbyUTIintheyear1963.Thoughthegrowthwasslow,butitacceleratedfromtheyear1987whennon-UTIplayersenteredthemarket.Inthepastdecade,Indianmutualfundindustryhadseendramaticimprovements,bothqualitywiseaswellasquantitywise.Before,themonopolyofthemarkethadseenanendingphase;theAssetsunderManagement(AUM)wereRs.67bn.TheprivatesectorentrytothefundfamilyraisedtheAUMtoRs.470byinMarch1993andtillApril2009;itreachedtheheight2000bn.PuttingtheAUMoftheIndianMutualFundsIndustryintocomparison,thetotalofitislessthanthedepositsofSBIalone,constitutelessthan11%ofthetotaldepositsheldbytheIndianbankingindustry.ThemainreasonofitspoorgrowthisthatthemutualfundindustryinIndiaisnewinthecountry.LargesectionsofIndianinvestorsareyettobeintellectualedwiththeconcept.Hence,itistheprimeresponsibilityofallmutualfundcompanies,tomarkettheproductcorrectlyabreastofselling.Themutualfundindustrycanbebroadlyputintofourphasesaccordingtothedevelopmentofthesector.Eachphaseisbrieflydescribedasunder.FirstPhase-1964-87UnitTrustofIndia(UTI)wasestablishedon1963byanActofParliament.ItwassetupbytheReserveBankofIndiaandfunctionedundertheRegulatoryandadministrativecontroloftheReserveBankofIndia.In1978UTIwasde-linkedfromtheRBIandtheIndustrialDevelopmentBankofIndia(IDBI)tookovertheregulatoryandadministrativecontrolinplaceofRBI.ThefirstschemelaunchedbyUTIwasUnitScheme1964.Attheendof1988UTIhadRs.6,700croresofassetsundermanagement.SecondPhase-1987-1993(EntryofPublicSectorFunds)Entryofnon-UTImutualfunds.SBIMutualFundwasthefirstfollowedbyCanbankMutualFund(Dec87),PunjabNationalBankMutualFund(Aug89),IndianBankMutual

Fund(Nov89),BankofIndia(Jun90),BankofBarodaMutualFund(Oct92).LICin1989andGICin1990.Theendof1993markedRs.47,004asassetsundermanagement.SRMUNIVERSITY[SCHOOLOFMANAGEMENT]


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d)TypesofSchemes

CLASSIFICATIONOFMUTUALFUNDSCHEMES:-

Fig:-3Anymutualfundhasanobjectiveofearningincomefortheinvestorsand/orgettingincreasedvalueoftheirinvestments.Toachievetheseobjectivesmutualfundsadoptdifferentstrategiesandaccordinglyofferdifferentschemesofinvestments.Onthesebasesthesimplestwaytocategorizeschemeswouldbetogrouptheseintotwobroadclassifications:OperationalClassificationandPortfolioClassification.Operationalclassification:-Operationalclassificationhighlightsthetwomaintypesofschemes,i.e.,open-endedandclose-endedwhichareofferedbythemutualfunds.Portfolioclassification:-Portfolioclassificationprojectsthecombinationofinvestmentinstrumentsandinvestmentavenuesavailabletomutualfundstomanagetheirfunds.Anyportfolioschemecanbeeitheropenendedorcloseended.



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MUTUALFUNDOperationalClassificationOpenEndedSchemes:Asthenameimpliesthesizeofthescheme(Fund)isopeni.e.,notspecifiedorpredetermined.Entrytothefundisalwaysopentotheinvestorwhocansubscribeatanytime.Suchfundstandsreadytobuyorsellitssecuritiesatanytime.Itimpliesthatthecapitalizationofthefundisconstantlychangingasinvestorssellorbuytheirshares.Further,thesharesorunitsarenormallynottradedonthestockexchangebutarerepurchasedbythefundatannouncedrates.Open-endedschemeshavecomparativelybetterliquiditydespitethefactthatthesearenotlisted.Thereasonisthatinvestorscananytimeapproachmutualfundforsaleofsuchunits.Nointermediariesarerequired.Moreover,therealizableamountiscertainsincerepurchaseisatapricebasedondeclarednetassetvalue(NAV).Nominute-to-minutefluctuationsinrateshaunttheinvestors.Theportfoliomixofsuchschemeshastobeinvestments,whichareactivelytradedinthemarket.Otherwise,itwillnotbepossibletocalculateNAV.Thisisthereasonthatgenerallyopen-endedschemesareequitybased.CloseEndedSchemes:Suchschemeshaveadefiniteperiodafterwhichtheirshares/unitsareredeemed.Unlikeopen-endedfunds,thesefundshavefixedcapitalization,i.e.,theircorpusnormallydoesnotchangethroughoutitslifeperiod.Closeendedfundunitstradeamongtheinvestorsinthesecondarymarketsincethesearetobequotedonthestockexchanges.TheirpriceisdeterminedonthebasisofdemandandsupplyintheMarket.Theirliquiditydependsontheefficiencyandunderstandingoftheengagedbroker.TheirpriceisfreetodeviatefromNAV,i.e.,thereiseverypossibilitythatthemarketpricemaybeaboveorbelowitsNAV.Ifonetakesintoaccounttheissueexpenses,conceptuallycloseendedfundunitscannotbetradedatapremiumor

overNAVbecausethepriceofapackageofinvestments,i.e.,cannotexceedthesumofthepricesoftheinvestmentsconstitutingthepackage.Whateverpremiumexiststhatmayexistonlyonaccountofspeculativeactivities.InIndiaasperSEBI(MF)Regulationseverymutualfundisfreetolaunchanyorbothtypesofschemes.



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MUTUALFUNDPortfolioClassificationofFunds:Followingaretheportfolioclassificationoffunds,whichmaybeoffered.Thisclassificationmaybeonthebasisof(a)Return,(b)InvestmentPattern,(c)Specializedsectorofinvestment,(d)Leverageand(e)Others.(a)Returnbasedclassification:Tomeetthediversifiedneedsoftheinvestors,themutualfundschemesaremadetoenjoyagoodreturn.Returnsexpectedareinformofregulardividendsorcapitalappreciationoracombinationofthesetwo.I.IncomeFunds:-Forinvestorswhoaremorecuriousforreturns,Incomefundsarefloated.Theirobjectiveistomaximizecurrentincome.Suchfundsdistributeperiodicallytheincomeearnedbythem.Thesefundscanfurtherbesplittedupintocategories:thosethatstressconstantincomeatrelativelylowriskandthosethatattempttoachievemaximumincomepossible,evenwiththeuseofleverage.Obviously,thehighertheexpectedreturns,thehigherthepotentialriskoftheinvestment.ii.GrowthFunds:-Suchfundsaimtoachieveincreaseinthevalueoftheunderlyinginvestmentsthroughcapitalappreciation.Suchfundsinvestingrowth-orientedsecurities,whichcanappreciatethroughtheexpansionproductionfacilitiesinlongrun.Aninvestorwhoselectssuchfundsshouldbeabletoassumeahigherthannormaldegreeofrisk.iii.ConservativeFunds:-Thefundwithaphilosophyofallthingstoissueoffersdocument-announcingobjectivesas:(I)Toprovideareasonablerateofreturn,(ii)Toprotectthevalueofinvestmentand,(iii)Toachievecapitalappreciationconsistentwiththefulfillmentofthefirsttwoobjectives.Suchfundswhichofferablendofimmediateaveragereturnandreasonablecapitalappreciationareknownasmiddleoftheroadfunds.Suchfundsdividetheirportfolioincommonstocksandbondsinawaytoachievethedesiredobjectives.Suchfundshav

ebeenmostpopularandappealtotheinvestorswhowantbothgrowthandincome.



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MUTUALFUND(b)InvestmentBasedClassification:Mutualfundsmayalsobeclassifiedonthebasisofsecuritiesinwhichtheyinvest.Basically,itisrenamingthesubcategoriesofreturnbasedclassification.I.EquityFund:-Suchfunds,asthenameimplies,investmostoftheirinvestiblesharesinequitysharesofcompaniesandundertaketheriskassociatedwiththeinvestmentinequityshares.Suchfundsareclearlyexpectedtooutdootherfundsinrisingmarket,becausethesehavealmostalltheircapitalinequity.Equityfundsagaincanbeofdifferentcategoriesvaryingfromthosethatinvestexclusivelyinhighqualityblue-chipcompaniestothosethatinvestsolelyinthenew,unestablishedcompanies.Thestrengthofthesefundsistheexpectedcapitalappreciation.Naturally,theyhaveahigherdegreeofrisk.

EquityOrientedSchemesii.BondFunds:Suchfundshavetheirportfolioconsistedofbonds,debentures,etc.thistypeoffundisexpectedtobeverysecurewithasteadyincomeandlittleornochanceofcapitalappreciation.Obviouslyriskislowinsuchfunds.InthiscategorywemaycomeacrossthefundscalledLiquidFunds,whichspecializeininvestingshort-termmoneymarketinstruments.Theemphasisisonliquidityandisassociatedwithlowerrisksandlowreturns.



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DebtBasedSchemeiii.BalancedFund:Thefunds,whichhaveintheirportfolioareasonablemixofequityandbonds,areknownasbalancedfunds.Suchfundswillputmoreemphasisonequityshareinvestmentswhentheoutlookisbrightandwilltendtoswitchtodebentureswhenthefutureisexpectedtobepoorforshares.(c).Sectorbasedclassification:Therearenumberoffundsthatinvestinaspecifiedsectorofeconomy.Whilesuchfundsdohavethedisadvantageoflowdiversificationbyputtingalltheiralleggsinonebasket,thepolicyofspecializinghastheadvantageofdevelopinginthefundmanagersanintensiveknowledgeofthespecificsectorinwhichtheyareinvesting.Sectorbasedfundsareaggressivegrowthfundswhichmakeinvestmentsonthebasisofassessedbrightfutureforaparticularsector.

Thesefundsarecharacterizedbyhighviability,hencemorerisky.RealEstateInfrastructureITSectorAutoSector



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MUTUALFUNDAdvantagesofInvestingintoaMutualFund:-

Fig:-4Flexibility-MutualFundinvestmentsalsooffersalotofflexibilitywithfeaturessuchassystematicinvestmentplans,systematicwithdrawalplans&dividendreinvestment.Affordability-Theyareavailableinunitssothismakesitveryaffordable.Becauseofthelargecorpus,evenasmallinvestorcanbenefitfromitsinvestmentstrategy.Liquidity-Inopen-endedschemes,thereisanoptionofwithdrawingorredeemingmoney.Diversification-RiskisloweredwithMutualFundsastheyinvestacrossdifferentindustries&stocks.ProfessionalManagement-ExpertFundManagersoftheMutualFundanalyzealloptionsbasedonexperience&research.Potentialofreturn-ThefundmanagerswhotakecareofMutualFundhaveaccesstoinformationandstatisticsfromleadingeconomistsandanalystsaroundtheworld.Becauseofthis,theyareinabetterpositionthanindividualinvestorstoidentifyopportunitiesforinvestmentstoflourish.LowCostsThebenefitsofscaleinbrokerage,custodialandotherfeestranslateintolowercostsforinvestors.Regulatedforinvestorprotection-TheMutualFundssectorisregulatedtosafeguardtheinvestor

sinterests.



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MUTUALFUNDAdvantagesofMutualFunds:ProfessionalManagementTheprimaryadvantageoffunds(atleasttheoretically)istheprofessionalmanagementofmoney.Investorspurchasefundsbecausetheydonothavethetimeortheexpertisetomanagetheirownportfolio.Amutualfundisarelativelyinexpensivewayforasmallinvestortogetafull-timemanagertomakeandmonitorinvestments.DiversificationByowningsharesinamutualfundinsteadofowningindividualstocksorbonds,riskisspreadout.Theideabehinddiversificationistoinvestinalargenumberofassetssothatalossinanyparticularinvestmentisminimizedbygainsinothers.Inotherwords,themorestocksandbondsanindividualown,thelessanyoneofthemcanhurt.EconomiesofScale:Becauseamutualfundbuysandsellslargeamountsofsecuritiesatatime,itstransactioncostsarelowerthanasanindividualwouldpay.LiquidityJustlikeanindividualstock,amutualfundallowsinconvertingsharesintocashatanytime.SimplicityBuyingamutualfundiseasy.Whenaninvestorinvestinthemutualfundthentheyneedtotakeform,fillitaccordingtorequiredinstructionsgivenandgivethedemanddraftorchequeofamountwhatevertheywanttoinvest.Reducedrisk:-Asmutualfundsinvestsinlargenumberofcompaniesandaremanagedprofessionally,theriskfactoroftheinvestorisreduced.Asmallinvestor,ontheotherhand,maynotbeinpositiontominimizethesuchrisk.Taxadvantage:-Therearecertainschemesofmutualfundwhichprovidetaxadvantageunderincometaxact.Thustaxliabilityofinvestoralsoreducedwhenheinvestinmutualfundschemes.Lowoperatingcost:-Mutualfundhaslargenumberofinvestiblefundsattheirdisposalandthuscanavailthelargescaleofeconomies.Thisreducestheiroperatingcostbywayofbrokerage,fees,commissionetc.Thus,aninvestorcan

alsogetsthebenefitsoflargescaleofeconomiesandlowoperatingcost.



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MUTUALFUNDDisadvantagesofMutualFunds:ProfessionalManagementManyinvestorsdebateoverwhetherornottheso-calledprofessionalsareanybetterthananindividualorothersatpickingstocks.Managementisbynomeansinfallible,and,evenifthefundlosesmoney,themanagerstilltakeshis/hercut.CostsThemutualfundindustryismasterfulatburyingcostsunderlayersofjargon.Thesecostsaresocomplicatedthatinthistutorialwehavedevotedanentiresectiontothesubject.DilutionBecausefundshavesmallholdingsinsomanydifferentcompanies,highreturnsfromafewinvestments.Oftendon

tmakemuchdifferenceontheoverallreturn.Dilutionisalsotheresultofasuccessfulfundgettingtoobig.Whenmoneypoursintofundsthathavehadstrongsuccess,themanageroftenhastroublefindingagoodinvestmentforallthenewmoney.TaxesWhenmakingdecisionsaboutanindividualsmoney,fundmanagersdon

tconsideraboutpersonaltaxsituation.Forexample,whenafundmanagersellsasecurity,acapitalgaintaxistriggered,whichaffectshowprofitabletheindividualisfromthesale.Itmighthavebeenmoreadvantageousfortheindividualtodeferthecapitalgainsliability.

F)BASISFORSELECTION:Investorsareselectingthemutualfundsonthebasisoffollowingaspectsofinvestment:NetassetsPortfoliocompositionIncomecompositionGrossincomeaspercentageofnetassetsExpensesratioRealizedgainperunitUnrealizedappreciationperunit



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g)MUTUALFUNDCONSTITUENTS:-

Fig:-5AllmutualfundscomprisefourconstituentsSponsors,Trustees,AssetManagementCompany(AMC)andCustodians.Sponsors:Thesponsorsinitiatetheideatosetupamutualfund.Itcouldbearegisteredcompany,scheduledbankorfinancialinstitution.Asponsorhastosatisfycertainconditions,suchascapital,record(atleastfiveyearsoperationinfinancialservices),andde-faultfreedealingsandgeneralreputationoffairness.ThesponsorsappointtheTrustee,AMCandCustodian.OncetheAMCisformed,thesponsorisjustastakeholder.



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MUTUALFUNDTrust/BoardofTrustees:Trusteesholdafiduciaryresponsibilitytowardsunitholdersbyprotectingtheirinterests.Trusteesfloatandmarketschemes,andsecurenecessaryapprovals.TheycheckiftheAMCsinvestmentsarewithinwell-definedlimits,whetherthefundsassetsareprotected,andalsoensurethatunitholdersgettheirduereturns.TheyalsoreviewanyduediligencebytheAMC.Formajordecisionsconcerningthefund,theyhavetotaketheunitholdersconsent.TheysubmitreportseverysixmonthstoSEBI:Investorsgetanannualreport.Trusteesarepaidannuallyoutofthefundsassets0.5percentoftheweeklynetassetvalue.FundManagers/AMC:Theyaretheoneswhomanagemoneyoftheinvestors.AnAMCtakesdecisions,compensatesinvestorsthroughdividends,maintainsproperaccountingandinformationforpricingofunits,calculatestheNAV,andprovidesinformationonlistedschemes.Italsoexercisesduediligenceoninvestments,andsubmitsquarterlyreportstothetrustees.AfundsAMCcanneitheractforanyotherfundnorundertakeanybusinessotherthanassetmanagement.ItsnetworthshouldnotfallbelowRs.10crore.And,itsfeeshouldnotexceed1.25percentifcollectionsarebelowRs.100croreand1percentifcollectionsareaboveRs.100crore.SEBIcanpullupanAMCifitdeviatesfromitsprescribedrole.Custodian:Oftenanindependentorganization,ittakescustodyofsecuritiesandotherassetsofmutualfund.Itsresponsibilitiesincludereceiptanddeliveryofsecurities,collectingincomedistributingdividends,safekeepingoftheunitsandsegregatingassetsandsettlementsbetweenschemes.Theirchargesrangebetween0.15-0.2percentofthenetvalueoftheholding.Custodianscanservicemorethanonefund.



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MUTUALFUNDh)MARKETINGSTRATEGIESADOPTEDBYTHEMUTUALFUNDSThepresentmarketingstrategiesofmutualfundscanbedividedintothreemainheadings:A.DirectmarketingB.Sellingthroughintermediaries.C.JointCallsDirectMarketing:Thisconstitutes20percentofthetotalsalesofmutualfunds.Someoftheimportanttoolsusedinthistypeofsellingare:PersonalSelling:InthiscasethecustomersupportofficerorRelationshipManagerofthefundataparticularbranchtakesappointmentfromthepotentialprospect.Oncetheappointmentisfixed,thebranchofficeralsocalledBusinessDevelopmentAssociate(BDA)insomefundsthenmeetstheprospectandgiveshimalldetailsaboutthevariousschemesbeingofferedbyhisfund.Theconversionrateinthismodeofsellingisinbetween30%40%.Telemarketing:Inthiscasetheemphasisistoinformthepeopleaboutthefund.Thenamesandphonenumbersofthepeoplearepickedatrandomfromtelephonedirectory.Somefundhouseshavetheirdatabaseofinvestorsandtheycrossselltheirotherproducts.Sometimespeoplebelongingtoaparticularprofessionarealsocontactedthroughphoneandaretheninformedaboutthefund.Generallytheconversionrateinthisformofmarketingis15%20%.Directmail:Thisoneofthemostcommonmethodfollowedbyallmutualfunds.Addressesofpeoplearepickedatrandomfromtelephonedirectory,businessdirectory,professionaldirectoryetc.Thecustomersupportofficer(CSO)thenmailstheliteratureoftheschemesofferedbythefund.Thefollowupstartsafter3to4daysofmailingtheliterature.TheCSOcallsonthepeopletowhomtheliteraturewasmailed.Answerstheirqueriesandisgenerallysuccessfulintakingappointmentswiththosepeople.ItisthenthejobofBDAtotryhisbesttoconvertthatprospectintoacustomer.



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MUTUALFUNDAdvertisementsinnewspapersandmagazines:Thefundsregularlyadvertiseinbusinessnewspapersandmagazinesbesidesinleadingnationaldailies.Thepurposetokeepinvestorsawareabouttheschemesofferedbythefundandtheirperformanceinrecentpast.AdvertisementinTV/FMChannel:ThefundsareaggressivelygivingtheiradvertisementsinTVandFMChannelstopromotetheirfunds.HoardingsandBanners:Inthiscasethehoardingsandbannersofthefundareputatimportantlocationsofthecitywherethemovementofthepeopleisveryhigh.Thehoardingandbannergenerallycontainsinformationeitheraboutoneparticularschemeorbriefinformationaboutallschemesoffund.Sellingthroughintermediaries:Intermediariescontributetowards80%ofthetotalsalesofmutualfunds.Thesearethepeople/distributorswhoareindirecttouchwiththeinvestors.Theyperformanimportantroleinattractingnewcustomers.Mostoftheseintermediariesarealsoinvolvedinsellingsharesandotherinvestmentinstruments.Theydoacommendablejobinconvincinginvestorstoinvestinmutualfunds.Alotdependsontheaftersaleservicesofferedbytheintermediarytothecustomer.Customersprefertoworkwiththoseintermediarieswhogivethemrightinformationaboutthefundandkeepthemabreastwiththelatestchangestakingplaceinthemarketespeciallyiftheyhaveanybearingonthefundinwhichtheyhaveinvested.RegularMeetingswithdistributors:Mostofthefundsconductmonthly/bi-monthlymeetingswiththeirdistributors.Theobjectiveistoheartheircomplaintsregardingserviceaspectsfromfundssideandotherqueriesrelatedtothemarketsituation.Sometimes,specialtrainingprogrammesarealsoconductedforthenewagents/distributors.Traininginvolvesgivingdetailsabouttheproductsofthefund,theirpresentperformanceinthemarket,whatthec

ompetitorsaredoingandwhattheycandotoincreasethesalesofthefund.



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MUTUALFUNDJointCalls:Thisisgenerallydonewhentheprospectseemstobeahighnetworthinvestor.TheBDAandtheagent(whoislocatedclosetotheresidenceorareaofoperation)togethervisittheprospectandbriefhimaboutthefund.Theconversionrateisveryhighinthissituation,generally,around60%.Boththefundandtheagentprovideevenaftersaleservicesinthisparticularcase.Themostimportanttrendinthemutualfundindustryistheaggressiveexplosionoftheforeignownedmutualfundscompaniesandthedeclineofthecompaniesfloatedbynationalizedbanksandsmallprivatesectorplayers.Manynationalizedbanksgotintothemutualfundsbusinessintheearlyninetiesandgotoftoagoodstartduetothestockmarketboomprevailingthen.Thesebanksdidnotreallyunderstandthemutualfundsbusinessandtheyvieweditasanotherkindofbankingactivity.Fewhiredspecializedstaffandgenerallychosetotransferstafffromparentorganizations.Theperformanceofmostoftheschemesfloatedbytheseorganizationswasnotgood.SomeschemeshadofferedguaranteedreturnsandthereparentorganizationshadtobailouttheseAMCbypayinglargeamountofmoneyasthedifferencebetweentheguaranteedandactualreturns.Theservicelevelswerealsoverybad.MostoftheseAMChavenotbeenabletoretainstaff,floatnewschemesetc.Anditisdoubtfulwhether,barringafewexceptions,theyhaveseriousplansofcontinuingtheactivityinamajorway.TheexperienceofsomeoftheAMCfloatedbytheprivatesectorIndiancompanieswasalsoverysimilar.TheyquicklyrealizedthattheAMCbusinessisabusiness,whichmakesmoneyinthelongtermandrequiresdeep-pocketedsupportintheintermediateyears.Somehavesoldouttoforeignownedcompanies,somehavemergedwithothersandthereisageneralrestructuringgoingon.Theforeignownedcompani

eshavedeeppocketsandhavecomeherewiththeexpectationsofalonghaul.Theycanbecreditedwiththeintroductionofmanynewpracticessuchasnewproductinnovation,sharpimprovementintheservicestandardsanddisclosure,usageoftechnology,brokereducationandsupportetc.Infact,theyhaveforcedtheindustrytoupgradeitselfanditsserviceleveloforganization.



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MUTUALFUNDJ)MARKETINGOFFUNDSANDITSCHALLENGES:Whenweconsidermarketing,wehavetoseetheissuesintotality,becausewecannotjudgeanelephantbyitstrunkorbyitstailbutwehavetoseeitinitstotality.Whenwesaymarketingofmutualfunds,itmeans,includesandencompassesthefollowingaspects:

Assessingofinvestorsneedsandmarketresearch;Respondingtoinvestorsneeds;Productdesigning;Studyingthemacroenvironment;Timingofthelaunchoftheproduct;Choosingthedistributionnetwork;Finalizingstrategiesforpublicityandadvertisement;Preparingofferdocumentsandotherliterature;Gettingfeedbackaboutsales;StudyingperformanceindicatorsaboutfundperformancelikeNAV;Sendingcertificatesintimeandotheraftersalesactivities;Honoringthecommitmentsmadeforredemptionsandrepurchase;Payingdividendsandotherentitlements;Creatingpositiveimageaboutthefundandchangingthenatureofthemarketitself.Widening,BroadeningandDeepeningtheMarkets

Theabovearetheaspectsofmarketingofmutualfunds,intotality.Evenifthereisasingleweak-linkamongthefactorswhicharementionedabove,nomutualfundcansuccessfullymarketitsfunds.PRODUCTINNOVATIONANDVARIETYA.InvestorPreferencesThechallengeforthemutualfundsisinthetailoringtherightproductsthatwillhelpmobilizingsavingsbytargetinginvestorsneeds.Itisnecessarythatthecommoninvestorunderstandsveryclearlyandloudlythesalientfeaturesoffunds,anddistinguishesonefundfromanother.Thefundsthatarebeinglaunchedtodayaremoreorlesslook-alikes,orplainvanillafunds,and

notnecessarilydesignedtotakeintoaccounttheinvestorsvaryingneeds.



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MUTUALFUNDTheIndianinvestorisessentiallyriskaverseandismorepassivethanactive.Heisnotinterestedinfrequentlychanginghisportfolio,butissatisfiedwithsafetyandreasonablereturns.Importantly,heunderstandsmorebyemotionsandsentimentsratherthanaquantitativecomparisonoffundsperformancewithrespecttoanindex.Meregrowthprospects,inanuncertainmarket,arenotattractivetohim.Heprefersonebirdinthehandtotwoinbush,andishappyifassuredarateofreasonablereturnthathewillgetonhisinvestment.Theexpectationsofatypicalinvestor,inorderofpreferencearethesafetyoffunds,reasonablereturnandliquidity.Theinvestorisreadytoinvesthismoneyoverlongperiods,providedthereisapurposeattachedtoitwhichislinkedtohissocialneedsandthereforeappealstohissentimentsandemotions.Thatpurposemaybehischildeducationandcareerdevelopment,medicalexpenses,healthcareafterretirement,ortheneedforsteadyandsureincomeafterretirement.Inacountrywheresocialsecurityandsocialinsuranceareconspicuousmorebytheirabsence,mutualfundscanpooltheirresourcestogetherandtrytomobilizefundstomeetsomeofthesocialneedsofthesociety.B.ProductInnovationsWiththedebtmarketnowgettingdeveloped,mutualfundsaretappingtheinvestorswhorequiresteadyincomewithsafety,byfloatingfundsthataredesignedtoprimarilyhavedebtinstrumentsintheirportfolio.Theotherareawheremutualfundsareconcentratingisthemoneymarketmutualfunds,sectoralfunds,indexfunds,giltfundsbesidesequityfunds.Theindustrycanalsodesignseparatefundstoattractsemi-urbanandruralinvestors,keepingtheirseasonalrequirementsinmindforharvestseasons,festivalseasons,sowingseasons,etc.i)MARKETSEGMENTSOFMUTUALFUND:-

MarketSegmentation:Differentsegmentsofthemarkethavedifferentrisk-returncriteria,onthebasisofwhichtheytakeinvestmentdecisions.Notonlythat,inaparticularsegmentalsotherecouldbedifferentsub-segmentsaskingforyetdifferentrisk-returnattributes,anddifferentialpreferenceforvariousinvestmentsattributesoffinancialproduct.



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MUTUALFUNDDifferentinvestmentattributesaninvestorexpectsinafinancialproductare:

Liquidity,Capitalappreciation,Safetyofprincipal,Taxtreatment,Dividendorinterestincome,Regulatoryrestrictions,Timeperiodforinvestment,etc.

Onthebasisoftheseattributesthemutualfundmarketmaybebroadlysegmentedintofivemainsegmentsasunder.1)RetailSegmentThissegmentcharacterizeslargenumberofparticipantsbutlowindividualvolumes.Itconsistsofindividuals,HinduUndividedFamilies,andfirms.Itmaybefurthersub-dividedinto:i.Salariedclasspeople;ii.Retiredpeople;iii.Businessmenandfirmshavingoccasionalsurpluses;iv.HUFforlongterminvestmentpurpose.Thesemaybefurtherclassifiedonthebasisoftheirincomelevels.Ithasbeenobservedthatprospectsindifferentclassesofincomelevelshavedifferentpatternsofpreferencesofinvestment.Similarly,theinvestmentpreferencesforurbanandruralprospectswoulddifferandthereforethestrategiesfortappingthissegmentwoulddifferonthebasisofdifferentiallifestyle,valueandethics,socialenvironment,mediahabits,andnatureofwork.Broadly,thisclassrequiressecurityoftheprincipal,liquidity,andregularincomemorethancapitalappreciation.Itlacksspecializedinvestmentskillsinfinancialmarketsandhighlysusceptibletomobbehavior.Themarketingstrategyinvolvingindirectsellingthroughagencynetworkandcreatingawarenessthroughappropriatemediawouldbemoreeffectiveinthissegment.



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MUTUALFUND2)InstitutionalSegment:---Thissegmentcharacterizeslessnumberofparticipants,andlargeindividualvolumes.Itconsistsofbanks,publicsectorunits,financialinstitutions,foreigninstitutionalinvestors,insurancecorporations,providentandpensionfunds.Thisclassnormallylooksformorespecializedprofessionalinvestmentskillsofthefundmanagersandexpectsastructuredproductthanaready-madeproduct.Thetaxfeaturesandregulatoryrestrictionsarethevitalconsiderationsintheirinvestmentdecisions.Eachclassofparticipants,suchasbanks,providesanichetothefundmanagersinthissegment.Itrequiresmoreofapersonalizedanddirectmarketingtosustainandincreasevolumes.3)Trusts:---Thisisahighlyregulated,highvolumessegment.Itconsistsofvarioustypesoftrusts,namely,charitabletrusts,religioustrust,educationaltrust,familytrust,socialtrust,etc.eachwithdifferentobjectives.Itsbasicinvestmentneedwouldbesafetyoftheprincipal,regularincomeandhedgeagainstinflationratherthanliquidityandcapitalappreciation.Thisclassoffersvastpotentialtothefundmanagers,iftheregulatorsrelaxguidelinesandallowthetruststoinvestfreelyinmutualfunds.4)Non-ResidentIndians:---Thissegmentconsistsofveryrisksensitiveparticipants,attimesreferredasfairweatherfriends.Theyneedthehighestcoveragainstpoliticalandexchangerisk.Theynormallyprefereasyexitwithrepatriationofincomeandprincipal.Theyalsoholdastrategicimportanceastheybringincrucialforeignexchangeacrucialinputfordevelopingcountrylikeours.Marketingtothissegmentrequiresspecialkindofproductsforgroupsofforeigncountriesdependingupontheprovisionsoftaxtreaties.Therangeofsuitableproductsarerequiredtodesigntodivertthefundsflowingintobankaccounts.Thelatestflavorin

themutualfundindustryisexclusiveschemesfornon-residentIndians(NRI.)5)Corporate:---Generally,theinvestmentneedofthissegmentistoparktheiroccasionalsurplusfundsthatearnreturnmorethanwhattheyhavetopayonaccountofholdingthem.Alternatively,theyalsogetsurplusfundduetotheseasonalityofthebusiness,whichtypicallybecomedueforthepaymentwithinayearorquarterorevenamonth.Theyneedshorttermparkingplacefortheirfund,thissegmentoffersavastpotentialtospecializedmoneymarketmanagers.Giventherelaxationintheregulatoryguidelines,fundmanagersareexpecteddesignproductstothissegment.Thus,eachsegmentandsub-segmenthastheirownriskreturnpreferencesformingnichesinthemarket.Mutualfundsmanagershavetoanalyzeindetailtheintrinsicneedsoftheprospectsanddesignavarietyofsuitableproductsfor



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MUTUALFUNDthem.Notonlyisthat,theproductsalsorequiredtobemarketedthroughappropriatelydifferentmarketingstrategies.TheAtheistsareturningbelievers.Mutualfunds,privatesectoronesinparticular,whohadwrittenoffadvertisingastheAultimatewasteofmoneyhavenearlytripledtheirpressmediaspend.Whatinterestingisthatinthisperiodtheshareoftheprivatesectormutualfundsinthecategorytotalmediaspendinghassurgedfrom20percentto52percent.Thiscanbeattributedtoprivatesectorfunds(giventhedataavailablewiththeAssociationofMutualFundsofIndia)seeinganincreaseshareofnetinflowsrelativetothebank-sponsoredcounterpartsinthepublicsector.Clearlyadvertisingtypeshavesomethingtocheerabout.Butwhatcausedthissuddenattitudinalshifttowardsadvertising?Accordingtoexperts,fundsarebeingpushedintoadvertisingmorebyintermediarieslikebankswhoarereluctanttosellaproductwhosenameisunfamiliartoinvestor.Besides,sincemoreopen-endedschemesarenowavailable,someformofongoingsupporttokeepsalesboominghasbeendeemednecessarybythefunds.Theindustryhasdiscoveredthatadvertisinginthechangedclimatetoday,wheninvestorsaremostreceptivetomutualfunds,canperkupsalesbyanywherebetween20-40percent.MFhasrationaleforsteppingupmarketingspendsbecausethebrandisanimportantpartoftheconsumerdecisiontoinvestinacategorythatisnotyetclearlyunderstoodbypeople.Accordingtothemutualfundmarketers,advertisinghelpsbringrecallwhenconsumersarelookingatinvestmentopportunities.Advertisingbackedbyanintegratedmarketingandcommunicationcampaigndesignedtoattractinvestorswithlongtermprospectivehashelpedthefundpostaredemption-to-salesratioofjustaboutfivepercentascomparedto20-30percentfortheindustryonanaverage.

Directmailisanothermedium,whichsomefundshavesuccessfullyused.Butratherthansendingoutmailerstoallandsundry,thereisaneedforappropriatetargeting.Educationalseminarsarethefinalleginthemarketingandcommunicationprocess.Inthese,investorsconditionedbyadvertisingandhookedbyaninterestingmailercanhavelingeringdoubtsclarified.Attractivepointofpurchase(POP)materialcanalsohelp.



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MUTUALFUNDAnotherverysuccessfulmedianiche,whichhasbeenexploitedtothehiltbyfunds,isintermediarymagazinesandnewsletters.Besidesthelowcostsofadvertisinginthesenewsletters,thesepublicationscirculatetothosewhoarelookingforinvestmentopportunitiesandthusrepresentanextremelylucrativetargetsegment.Advertisingcontentbymostofthefundstoohasundergoneamarkedchangefromconcept-sellingadsdispellingmyths,tosellingspecificschemesthatmeetdefinedobjectives/goals.k)SEBIGUIDELINESTheSEBIissuedasetofregulationsandcodeofconductof20January.1993forthesmoothconductandregulationofMutualfund.Thesilentfeaturesoftheseguidelinesareasfollows:MutualFundcannotdealinOptiontrading,shortsellingorcarryingforward

transactionsinsecurities.MutualfundshouldbeformedastrustsandmanagedbyAMCRestrictiontoensurethoseinvestmentsunderallschemesdonotExceed15%ofthe

fundsinthesharesanddebenturesofasingle

company.

SEBIwillgrantregistrationtoonlythoseMutualFunds,whichcanprovean

efficientandorderlyconductofbusiness.TheMutualfundshouldhaveacustodian,notassociatedinanywaywiththeAMC

andregisteredwiththeboard.TheminimumamounttoberaisedwitheachclosedendedschemeshouldbeRs.20

croreandfortheopen-endedschemeRs.50crore.TheMutualFundisobligedtomaintainbooksofaccount.TheminimumnetworthofAMCisRs.5croreofwhichtheminimumcontribution

ofthesponsorshouldbe40%.TheMutualFundshouldensureadequatedisclosurestotheinvestorsSEBIcanimposesuspensionofregistrationincaseofviolationoftheprovisionof

theSEBIact1992,totheregulations.

Restrictionstoensuretheinvestmentsunderanindividualschemedonotexceed5%

ofthecorpusofanycompaniessharesandinvestmentsunderallschemesdonotexceed10%ofthefundsintheshares,debenturesorsecuritiesofasinglecompany.



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MUTUALFUNDCHAPTER:-2

2.1)

COMPANYPROFILE:-

TheStandardCharteredGroupwasformedin1869throughamergeroftwobanks:TheStandardBankofBritishSouthAfricafoundedin1863,andtheCharteredBankofIndia,AustraliaandChina,foundedin1853.BothcompanieswerekeentocapitalizeonthehugeexpansionoftradeandtoearnthehandsomeprofitstobemadefromfinancingthemovementofgoodsfromEuropetotheEastandtoAfrica.

TheCharteredBank

FoundedbyJamesWilsonfollowingthegrantofaRoyalCharterbyQueenVictoriain1853

CharteredopeneditsfirstbranchesinMumbai(Bombay),CalcuttaandShanghaiin1858,followedbyHongKongandSingaporein1859

TraditionalbusinesswasincottonfromMumbai(Bombay),indigoandteafromCalcutta,riceinBurma,sugarfromJava,tobaccofromSumatra,hempinManilaandsilkfromYokohama

PlayedamajorroleinthedevelopmentoftradewiththeEastwhichfollowedtheopeningoftheSuezCanalin1869,andtheextensionofthetelegraphtoChinain1871

In1957CharteredBankboughttheEasternBanktogetherwiththeIonianBanksCyprusBranches.ThisestablishedapresenceintheGulf



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MUTUALFUND

TheStandardBank

FoundedintheCapeProvinceofSouthAfricain1862byJohnPaterson.CommencedbusinessinPortElizabeth,SouthAfrica,inJanuary1863

WasprominentinfinancingthedevelopmentofthediamondfieldsofKimberleyfrom1867andlaterextendeditsnetworkfurthernorthtothenewtownofJohannesburgwhengoldwasdiscoveredtherein1885

ExpandedinSouthern,CentralandEasternAfricaandby1953had600Offices

In1965,itmergedwiththeBankofWestAfricaexpandingitsOperationsintoCameroon,Gambia,Ghana,NigeriaandSierraLeone

In1969,thedecisionwasmadebyCharteredandbyStandardtoundergoaFriendlymerger.Allwasgoingwelluntil1986,whenahostiletakeoverbidwasmadefortheGroupbyLloydsBankoftheUnitedKingdom.Whenthebidwasdefeated,StandardCharteredenteredaperiodofchange.Provisionshadtobemadeagainstthirdworlddebtexposureandloanstocorporationsandentrepreneurswhocouldnotmeettheircommitments.StandardCharteredbeganaseriesofdivestmentsnotablyintheUnitedStatesandSouthAfrica,andalsoenteredintoanumberofassetsales.Fromtheearly90s,StandardCharteredhasfocusedondevelopingitsstrongfranchisesinAsia,theMiddleEastandAfricausingitsoperationsintheUnitedKingdomandNorthAmericatoprovidecustomerswithabridgebetweenthesemarkets.Secondly,itwouldfocusonconsumer,corporateandinstitutionalbanking,andontheprovisionoftreasuryservices?areasinwhichtheGrouphadparticularstrengthandexpertise.Inthenewmillenniumweacquired

GrindlaysBankfromtheANZGroupandtheChaseConsumerBankingoperationsinHongKongin2000.



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MUTUALFUND

EstablishmentofStandardCharteredBankaroundtheworld

CountryYearEstablishedUnitedKingdom1853China,India,Sri1858LankaHongKong,1859SingaporeIndonesia,Pakistan1863Philippines1872Malaysia1875Japan1880

CountryAustraliaMexico,OmanPeruJerseyBrazilVenezuelaFalklandMacauTaiwanCameroon

YearEstablished196419681973197819791980Islands,198319851986

Zimbabwe1892TheGambia,Sierra1894Leone,ThailandGhana1896Botswana1897USABangladeshZambiaKenyaUgandaTanzaniaBahrainJordanKoreaQatar1902190519061911191219171920192519291950

Nepal1987Vietnam1990Cambodia,South1992AfricaIran1993Colombia1995Laos,Argentina1996Nigeria1999Lebanon2000CotedIvoire2001Mauritius2002Turkey2003Afghanistan2004

Brunei,UAE

1958



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MUTUALFUND

RecentstrategicalliancesandacquisitionsTheyear2005and2006werehistoricyearsforusasweachievedseveralmilestoneswithanumberofstrategicalliancesandacquisitionsthatwillextendourcustomerorgeographicreachandbroadenourproductrange.

Wecompleted,rebrandedandsuccessfullyintegratedSCFirstBankinKorea,whichtodateisthebiggestacquisitioninourhistory.

WecompletedfullintegrationbetweenStandardCharteredBank,ThailandandStandardCharteredNakornthonBankinOctober.

WeformedstrategicallianceswithFlemingFamily&PartnerstoexpandprivatewealthmanagementinAsiaandtheMiddleEast.

WeacquiredstakesinACBVietnamandTravelex.Weacquiredthebusinessoperati

onsofAmericanExpressBankinBangladesh.WeacquiredastakeinBohaiBankinTianjin,China,makingusthefirstforeignbanktobeallowedastakeinalocalbankinChina.

Weacquireda25%stakeinFirstAfricaGroupHoldingsinJune2006.

Weacquiredanadditional26%stakeinPermataBankthroughourconsortiumwithPTAstraInternational,thusgivingtheconsortiumatotalstakeof89%.

WeacquiredUnionBankinPakistaninSeptember2006andwehavesuccessfullyrebrandedallbranches.

Welaunchedatenderofferintheendof2006for100%inHsinchuInternationalBank,Taiwan



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MUTUALFUNDPRODUCTPROFILE

EQUITYSCHEMEImperialEquityFundTheStandardCharteredPremierEquityFund,aninnovativeopenendedequityfundthatattemptstogeneratewealthoverthelongtermthroughapotentcombinationofwelldefinedinvestmentstrategyandarobustinvestmentmanagementstructure.AtStandardCharteredMutualFundwebelievethatwealthcreationisapatientprocessthatinvolvesagoodblendofmyriadthemesliketheidentificationofabasketofgrowthideas,investinginthematanearlystageandtheconvictiontoholdonforthelongerterm.Foropportunitiesthenwillabound.Overthepastdecade,Indiancompanieshaveconvertedtheircompetitiveadvantagetomarketdominanceandintheprocesshavecreatedseriouswealthforinvestorsovera5-yearperiod.Ifthesoftwareandthetelephonysectorsliketheinsurance,aviationtonameacouplewhereweenvisagesuchgrowth.ThePremierEquityFundwillindulgewholeheartedlyinthisendeavortocreatewealthcreationprocessandthusseektoprovidelong-terminvestorswithanoptiontogeneratewealth.EnterpriseEquityFundA3yearclose-endedequityfundthatwillinvestinIPOsthatareslatedforlaunchinthenextthreeyears.IthelpsyoutakeadvantageoftheincreasingnumberofIPOsandbenefitfromthepotentialpremiumonlistingofIPOs.Sonomoreapplying,waitingforallotmentorrefundcheques.DontloseoutonIPOs.EquityArbitrageFund

TheStandardCharteredArbitrageFundmakesthemostthedifferenceacrossmarketsbyinvestinginthecashandfuturesmarket.Andwithupto35%allocationtodebtandmoneymarketinstruments,theproductsuitsalow-riskprofileperfetc

ly.Youdon

thavetoalwaysmakeachoice,butyoucanmakethemostfromtheoptions.AndTheStandardCharteredArbitrageFunddoesexactlythat.



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MUTUALFUNDTaxSaver(ELSS)Fund

StandardCharteredhasalsointroduceditsTaxsaverELSSfundSpecificallyinordertoprovideincometaxbenefittotheITpayersUndersection80CofIncomeTaxAct.

DEBTSCHEMEStandardCharteredallsessionbondFundInvestmentObjective:Togenerateoptimalreturnswithhighliquiditybyactivemanagementoftheportfolio,byinvestingpredominantlyindebtorientedmutualfundschemesandmoneymarketinstruments.TherecanbenoassurancethattheinvestmentobjectiveoftheSchemewillberealized.Idealinvestmenthorizon

Theschemeisdesignedforinvestorsseekingstablereturnsoverarelatively.Longertenorperiodofinvestmentofmorethanayear.

2.2OBJECTIVEOFSTUDYPrimaryobjective:Theprimaryobjectiveofthestudyistounderstandthemutualfundandunderstandthedifferentaspectsofmutualfundsandtheirfunctioninginmarket.Tounderstandtheinvestmentpatternofmutualfundindifferenttypeofschemesandhowtheseschemesareabletoservetheneedsofthecustomer.Tounderstandhowacustomerlooksattheschemeandwhatkindofbenefittheywantfromanyscheme.



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MUTUALFUNDTounderstandthedifferencebetweenthedirectinvestmentinstocksandinmutualfundandevaluatethatwhichinvestmentisbeneficial.

Secondaryobjective:Tounderstandthecustomerperceptiontowardsmakinginvestmentinanykindofstockandinmutualfund.Howthemutualfundswhereissuedtocustomer.Wherethesemutualfundsaretraded.

2.3)SCOPEOFSTUDY:ThisstudywillhelpinunderstandingthegrowingmutualfundmarketinIndiaandthiswillalsohelpustounderstandthefastchangesinnatureofmutualfund.Thisstudyisquitehelpfulinunderstandingthefunctioningofanymutualfundcompanyinrecentloomymarketcondition.Thisstudywillhelpinunderstandingtheinvestmentpatternofthemutualfundandhelpthecustomertochooseaparticularpattern.Thestudywillhelptounderstandtheorganizationtounderstandthechangingneedsofthecustomerandthatwilltheorganizationtotrackthecustomerinfuture.

ThestudyisdoneinPatna,wherestandardcharteredmutualfunddoesnthavemorebranchesthatwilltheorganizationtoexpandtheirfirminPatnabyunderstandingcustomerthroughthisstudy.



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MUTUALFUND

2.4)LIMITATIONOFTHESTUDY:ThestudywaslimitedtospecificareaofthePATNAcity.Thisstudywaslimitedtosamplesizeof150.Thetimehasconstraintof1month.Thecustomerwasnotprovidingrightinformationtous.Non-availabilityofpastdata,BalanceSheetetc.Non-availabilityofFundManagertodiscussonfundstrategiesandgrowthprojectionsduetogeographicallocation.Thisstudyhasbeenlimitedbytimeandcostfactors.ThisstudyhasbeenmadefromtheinformationgivenbySTANDARDCHARTERDMFoffice.AccuracyofthefindingsisdependentonthequalityoftheirResponses.



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MUTUALFUND

2.5)RESEARCHMETHODOLOGY:Researchmethodologydefineasthesystematicplan,design,collection,analysisandreportingofdataandfindingsrelevanttoaspecificmarketingsituationfacingthecompany.

RESEARCHDESIGN:Theresearchrequiresdevelopingthemostefficientplanforgatheringtheneededinformation.thisinvolvesdecisiononthedatasources,researchapproaches,researchinstrument,samplingplanandcontactmethod.

Therearethreetypesofresearchdesignasfollows:-

EXPLARATORYRESEARCH:Explaratoryresearchisconductedwhenresearcherdoesnotknowhowandwhycertainphenomenonoccurs.Theprimegoalforthisresearchistoknowunknown,thisresearchisunstructured.DESCRIPTIVERESEARCH:Descriptiveresearchiscarriedouttodescribethephenomenonormarketcharacteristics.Thisstudyisdonetounderstandbuyerbehavioranddescribecharacteristicsofthetargetmarket.Thisstudyisdoneforevaluationofthecustomerpreference.CAUSATIVERESEARCH:Causativeresearchisdonetoestablishthecauseandeffectrelationship.Iusethedescriptiveresearchformystudy.



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MUTUALFUND

DATASOURCES:PRIMARYDATA:Primarydataarecollectedbyastudyspecificallytofulfillthedataneedsoftheproblemathand.suchdataareoriginalincharacterandaregeneratedinlargenumberofsurveysconductedmostlybygovernmentandalsobyindividual,institution,andresearchbodies.

METHODSOFCOLLECTINGPRIMARYDATA:Directpersonalinterviews.Indirectoralinerviews.Informationfromcorrespondence.Mailquestionnairemethod.

SECONDARYDATA:Datawhicharenotoriginallycollectedbutratherobtainedfrompublishedandunpublishedsourcesareknownassecondarydata.

SOURCESOFSECONDARYDATA:PublishedsourcesUnpublishedsources

SAMPLE:Whensecondarydataarenotavailablefortheproblemunderstudy,adecisionmaybemadetocollectprimarydatabydifferentmethodsforinformation.Theinformationmaybecollectedbyeitherthecensusmethodorsamplemethod.Thesampleisaportionofuniverse.



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MUTUALFUNDSAMPLINGMETHODS:1.Nonprobabilitysamplingmethod.2.Probabilitysamplingmethod.Nonprobabilitysamplingmethod:

Judgmentsampling:Inthismethodofsamplingthechoiceofsampleitemsdependsonjudgmentoftheinvestigator.Inotherwords,theinvestigatorexerciseshisjudgmentinthechoiceandincludesthoseitemsinsamplewhichhethinksaremosttypicalofuniversewithregardtocharacteristicsunderinvestigation.

Quotasampling:Inaquotasample,quotasaresetupaccordingtosomespecifiedcharacteristicssuchassomanyineachofseveralincomegroups,somanyineachagegroupetc.

Conveniencesampling:Aconvenientsamplingisobtainedbyconvenientpopulation.Thisisalsocalledaschunk.

Probabilitysamplingmethod:

Samplingorunrestrictedrandomsamples:-simpleorrestrictedrandomsamplingtechniquereferstothatsamplinginwhicheachandeveryunitofthepopulationhasanequalopportunityofbeingselectedinthesample.

Restrictedrandomsampling:oStratifiedsampling:-Stratifiedrandomsamplingorsimplystratifiedsamplingisoneoftherandommethodswhich,byusingtheavailableinformationconcerningthepopulation,attempttodesignamoreefficientsamplethanobtainedbythesimplerandomprocedure.



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MUTUALFUNDoSystematicsampling:-Asystematicsampleisformedbyselectingoneunitatrandomandthenselectingadditionalunitatevenlyspacedintervalsuntilthesampleshasbeenformed.oMultistageorclustersampling:-Underthismethod,therandomselectionismadeofprimary,intermediateandfinal(theultimate)unitsgivenfromagivenpopulationorstratum.

SAMPLESIZE:-

150

MATHEMATICAL&STATICALTOOLSUSEDFORDATAANALYSISPercentagemethodAveragemethod

2.6)LITERATUREREVIEW:TheIndianmutualfundsindustryiswitnessingarapidgrowthasaresultofinfrastructuraldevelopment,increaseinpersonalfinancialassets,andriseinforeignparticipation.Withthegrowingriskappetite,risingincome,andincreasingawareness,mutualfundsinIndiaarebecomingapreferredinvestmentoptioncomparedtootherinvestmentvehicleslikeFixedDeposits(FDs)andpostalsavingsthatareconsideredsafebutgivecomparativelylowreturns,accordingtoIndianMutualFundIndustry.ThisreportprovidesadetailedanalysisalongwithcurrentandfutureoutlookoftheIndianmutualfundindustryandexploresthemarketdevelopmentandpotential.Theforecastsandestimationsgiveninthisreportarenotbasedonacomplexeconomicmodel,butareintendedasaroughguidetothedirectioninwhichtheindustryislikelytomove.



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MUTUALFUNDKeyFindingsTheIndianmutualfundsretailmarket,growingataCAGRofabout30%,isforecastedtoreachUS$300Billionby2015.-Atabout84%(asonMay31,2009),privatesectorAssetManagementCompaniesaccountformajorityofmutualfundsalesinIndia.

-Individualinvestorsmakeupfor96.86%ofthetotalnumberofinvestoraccountsandcontribute36.9%ofthenetassetsundermanagement.KeyIssues&FactsAnalyzedintheReport-WhatarethekeyfactorsfuelinggrowthintotheIndianmutualfundmarket?-Whicharethefastestgrowingproducts?-Whatarethekeygrowthprospects?-Whatarethekeychallengesforthemarket?-Howthemarketislikelytomoveinfuture?KeyPlayersThissectionprovidesbusinessanalysisofkeyplayersintheIndianmutualfundmarket,includingRelianceCapital,BOBandHDFC,Standardchartered.ResearchMethodologyUsedInformationsources:Informationforthisreporthasbeensourcedfrombooks,newspapers,tradejournals,whitepapers,industryportals,governmentagencies,tradeassociations,monitoringindustrynewsanddevelopments,andthroughaccesstomorethan3000paiddatabases.Analysismethod:Theanalysismethodsusedinthisreportincluderatioanalysis,historicaltrendanalysis,linearregressionanalysisusingsoftwaretools,judgmentalforecasting,andcauseandeffectanalysis.



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MUTUALFUNDCHAPTER:-3

DATAANALYSIS&INTREPRETATION:TABLE:-11.Occupationwiseclassification:OccupationProfessionalBusinessmanEmployeeGovt.employeesStudentTotalFigure:-6Occupationwiseclassification160140120100806040200123456CategoriesofoccupationOccupationNo.ofrespondentspercentage

No.ofrespondents1599121806150

Percentage10%66%8%12%4%100%

Inference:66%ofrespondentwerebelongingtobusinessmancategory.4%ofrespondentwerebelongingtostudentscategory.



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MUTUALFUNDTABLENO.-2

Incomewiseclassification:-

Incomelevel5000-1000010000-1500015000-20000Morethan20000TotalFig:-7

NO.ofrespondents18456324150

Percentage12%30%42%16%100%

Incomewiseclassification16014012010080604020050001000010000150001500020000Morethan20000Total

No.ofrepondents

NO.ofrespondentsPercentage

Incomelevels

Inference:42%ofrespondentarehavingincomeof15000-2000012%ofrespondentsarehavingincomeof5000-10000



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MUTUALFUND

TABLENO.-3

Savings:-

Saving1000-40004000-70007000-10000Morethan10000Total


Percentage18%15%48%19%100%

Fig:-8

Monthlysaving1601401201008060402001000-4000

No.ofrespondents

percentageNo.ofrespondents

4000-7000

7000-10000saving

Morethan10000

Total

Inference:48%ofrespondentaresaving7000-1000015%ofrespondentsaresaving4000-7000



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MUTUALFUND

TABLENO.-4

AwarenessofmutualfundamongGeneralmass:-

AttributesYesNoTotal

No.ofrespondent13515150

Percentage9o%10%100%

Figure:-9

1359o%

Inference:90%ofrespondentswasawareofmutualfund10%wasnotawareofmutualfund



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MUTUALFUNDTABLENO.-5Wheredoyouwanttoinvestmost:-

InvestmentalternativesBankdepositsStockmarketInsuranceMutualfundDebentureDerivativesTotal


Percentage34%9.5%25.5%19.5%3.5%9%100%

Fig:-10

Investmentpattern350300250200150100500InsuranceMutualfunddebentureDerivativesdeposarketTotalitsNo.ofrespondents

PercentageNo.ofrespondents

Bank

Stock

m

Invstmentalternatives

Inference:34%ofrespondentslikedtoinvestinbankdeposit.3.5%likedtoinvestindebenture.



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MUTUALFUNDTABLENO.-6Doyouwanttoinvest?



Percentage80%20%100%

Fig:-11

YesNo

Inference:80%ofrespondentswanttoinvest.20%dontwanttoinvest



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Reasontoinvestinmutualfund:-

ReasonMorereturnSafetyLimitedriskCapitalappreciationSystematicinvestmentTotalFig:-12


Percentage24%16.5%18%26%15.5%100%

reasontoselectMF160140120100806040200MorereturnSafetyCapitalappreciationLimitedriskSystematicinvestmentTotalNo.ofrespondents

Series1Series2

BenefitsofMF

Inference:26%ofrespondentwouldliketoinvestinmutualfundbecauseofcapitalappreciation.15.5%ofrespondentswouldliketoinvestinmutualfundforsystematicinvestment.



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MUTUALFUND

TABLENO.-8InvestmentamountinMutualfund:Amount1000-40004000-70007000-10000Morethan10000TotalNo.ofrespondents10187547150Percentage6.7%12%50%31.3%100%

Fig:-13

investmentamountinMF

1601401201008060402001000400040007000700010000AmountMorethan10000TotalNo.ofrespondentsPercentage

Inference:50%ofrespondentswantstoinvest7000-100006.7%respondentswantstoinvest1000-4000



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PREFERREDFUNDINMF

S.NO.1234

FUNDEQUITYFUNDDEBT.FUNDBALANCEDFUNDELSSSCHEMETOTAL

NO.OFRESPONDENTS51244441150

PERCENTAGE34%16%29%21%100%

SourceFig:-14

:PRIMARYDATA

Inference:34%ofrespondentspreferequityschemeofmutualfund.16%ofrespondentspreferdebtschemeofmutualfund.



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MUTUALFUNDTABLENO.-10DoyouknowaboutSTANDARDCHARTERDMutualfund:-

AttributeYesNoTotal

Respondents12921150


Fig:-15

AWARENESSofSTANDARDCHARTERDMF

YesNo

Inference:86%ofrespondentsknowabouttheSTANDARDCHARTERDmutualfund.14%ofrespondentsdontknowsthenameofSTANDARDCHARTERDMutualfund.



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HaveyouinvestedinSTANDARDCHARTERDMutualfund?

AttributeYesNoTotal



Fig:-16

12

Inference:80%0frespondentshaveinvestedinSTANDARDCHARTERDmutualfund20%ofrespondentshaventinvestedinmutualfund.



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ReasonforinvestinginSTANDARDCHARTERDmutualfund:-

ReasonForbetterreturnForminimumriskFortaxbenefitForCapitalappreciationTotal

Respondents33391830120

Percentage27.5%32.515%25%100%

Fig:-17

BenefitsofinvestmentinSTANDARDCHARTERDMF120100806040200ForbetterreturnFortaxbenefitBenefitsTotalRespondentspercentage

Inference:32.5%ofrespondentshaveinvestedinSTANDARDCHARTERDMutualfundforminimumrisk.

15%fortaxbenefit.



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MUTUALFUNDTABLENO.-13AttractingelementsofSTANDARDCHARTERDMutualfund:ReasonsSystematicinvestmentplan(SIP)LimitedinvestmentProficiencyBetterfundallocationDiversificationofYourfundTotalRespondents18Percentage15%

5127186120

42.5%32.5%15%4%100%

Fig:-18

investmenttypes12010080604020DiversificationofYourfund0RespondentsbenefitsPercentageTotalProficiencyBetterfundallocationSystematicinvestmentplan(SIP)Limitedinvestment

Inference:42.5%ofrespondentssaidthelimitedinvestmentinSTANDARDCHARTERDMFwasmostattracting.6%saiditsdiversificationismostattractive.



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MUTUALFUNDTABLENO.-14InhowmanyschemesofSTANDARDCHARTERDMutualfundwouldyouliketoinvest?

No.ofschemes123Morethan3

No.ofrespondent72151617

Percentage60%12.5%13.25%14.25%

Fig:-19CustomerinterestinSTANDARDCHARTERDMutualfund80706050403020100No.ofrespondentPercentageNoofrespondent

123Morethan3

Inference:60%ofrespondentswouldliketoinvestin1schemeofSTANDARDCHARTERDMutualfund.12.5%wouldliketoinvestin2schemesofSTANDARDCHARTERDmutualfund.



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MUTUALFUNDTABLENO.-15Haveyouinvestedinanyothermutualfund?AttributesYesNoTotalNo.ofrespondents18102120Percentage15%85%100%

Fig:-20

Yes

12

Inference;85%ofrespondentshaventinvestedinothermutualfund.15%ofrespondentshaveinvestedinothermutualfund



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Inwhichmutualfundhaveyouinvested?

NamesPrudentialICICImutualfundReliancemutualfundBirlasunlifemutualfundSBImutualfundOthersTotal


Percentage10.5%33.3%16.6%22.6%0%100%

Fig:-21

investmentinotherMF181614121086420PrudentialICICImutualfund

No.ofrespondentsPercentageBirlasunlifemutualfundOthers

OtherMFCOs

Inference:33.3%ofrespondentshaveinvestedinReliancemutualfund



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MUTUALFUND

TABLENO.-17

WouldyouliketosuggestotherstoinvestinSTANDARDCHARTERDmutualfund?




Fig:-22Yes

12

Inference:80%ofrespondentwouldliketosuggesttootherstoinvestinSTANDARDCHARTERDMutualfund.20%wouldntliketosuggest.



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ForwhichbenefitwillyousuggestotherstoinvestinSTANDARDCHARTERDMutualfund?

BenefitsGoodreturnTaxbenefitFuturebenefitCapitalappreciationTotal

Noofrespondents2028399120

Percentage20.8%29.940.7%9.6%100%

Fig:-23

120100806040200GoodreturnFuturebenefitTotalNoofrespondentsPercentage

Inference:40.7%ofrespondentswouldliketosuggestothersforfuturebenefits.9.6%respondentswouldsuggestforcapitalappreciation



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MUTUALFUND

CHAPTER:-4

4.1)

FINDINGS:66%ofrespondentwerebelongingtobusinessmancategory.(referTableno.1)42%ofrespondentarehavingincomeof15000-20000(referTableno.2)48%ofrespondentaresaving7000-10000(referTableno.3)90%ofrespondentswasawareofmutualfund(referTableno.4)34%ofrespondentslikedtoinvestinbankdeposits.(referTableno.5)80%ofrespondentswanttoinvest.(referTableno.6)26%ofrespondentwouldliketoinvestinmutualfundbecauseofcapitalappreciation.(referTableno.7)50%ofrespondentswanttoinvest7000-10000.(referTableno.9)86%ofrespondentsknowabouttheSTANDARDCHARTEREDmutualfund.(referTableno.10)80%ofrespondentshaveinvestedinSTANDARDCHARTEREDmutualfund.(referTableno.11)32.5%ofrespondentshaveinvestedinSTANDARDCHARTEREDMutualfundforminimumrisk.(referTableno.12)15%fortaxbenefit.(referTableno.12)42.5%ofrespondentssaidthelimitedinvestmentinSTANDARDCHARTEREDMFwasmostattracting.(referTableno.13)60%ofrespondentswouldliketoinvestin1schemeofSTANDARDCHARTEREDMutualfund.(referTableno.14)85%ofrespondentshaventinvestedinothermutualfund.(referTableno.15)33.3%ofrespondentshaveinvestedinReliancemutualfund.(referTableno.16)80%ofrespondentwouldliketosuggesttootherstoinvestinSTANDARDCHARTEREDMutualfund.(referTableno.17)

40.7%ofrespondentswouldliketosuggestothersforfuturebenefits.(referTableno.18)



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MUTUALFUND4.2)PERSONALOBSERVATION:Mypersonalobservations/learningsareasfollows:Iunderstoodthedifferentschemesofmutualfundhowtheseschemeswerelaunchedanddesignedforcustomer.Iunderstoodthebehavioroftheinvestorshowinvestorsarechoosingtheschemesofmutualfund.WhatwerethecriteriaforselectingthemutualfundsThroughpersonalobservationofsmallmarketplace,IlearntthatinvestorlikeauniformyieldfromtheirinvestmentsotheywerekeeninterestedinSTANDARDCHARTEREDMutualfunds.

Inthisloomyscenariotheinvestordidntwanttotakeanymoreriskininvestmentsotheyliketoinvestinmutualfund.Becauseoflessriskinmutualfundthenewinvestorwouldlikeinvestinmutualfundsschemes.Mutualfundbecomesstronginvestmentalternativeforexistingandnewinvestors.Therewillbeawidemarketplaceformutualfundinfuture.

4.3)SUGGESTION:TheSTANDARDCHARTEREDMutualfundisfastestgrowingmutualfundcompanyinIndiaandtheydonthavetheinvestorfromIncomegroupof1000015000p.mth.Sotheyshouldalsotargettheseinvestorswhoaremoreinterestedininvestinginmutualfund.

Theyshouldprovidemoreinformationabouttheirinvestmentproductandservicesmeantheyshouldalsoconcentrateonpromotionoftheirschemes.

TheSTANDARDCHARTEREDMutualfundshouldwidentheirmarketinBiharfornextfewyrssotheycantargetinvestorsofthatstate.



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MUTUALFUNDBasicallytheequityschemeswereperformingwellinmarketandrestoftheschemeswereperformingcomparativelesssotheyshouldalsochangetheirstrategyforotherschemeslikedebtfund,childrengiltfund,andliquidfunds.

TheSTANDARDCHARTEREDMutualfundhascompetitorslikeSBIMutualfund,ICICIMutualfundsTATAsmutualfundsetcwhichwereperformingequivalenttoSTANDARDCHARTEREDMutualfundsotheyshoulddesigntheirproductaccordingtothechangesintheirschemesandaccordingtotheneedsofchanginginvestors.

Retailerstogivetherightkindofinvestmentpatternfortheinvestorswiththevalueaddedservicesthatinfacthelpthefundhousetopulltheinvestorsthantopushtheproductstothem.

Demonstrationsabouttheproductsshouldbegiventotheinvestors,asithelpstosuggesttherightproducttotherightinvestors.

Theretailersneedtosendthepersonalmailstotheprospects,thiscandoneby

acquiringthedatabaseofthecustomersofhomeloan,thishelpsitpenetrating.

Companycanreducetheinitialamountforallthemutualfundschemes;hencetheycancoverhugecustomers.

Foreffectiverelationship,companycanprovidesufficientinformationabouttheseschemes,stockmarket,othersinformationinlocallanguages.

STANDARDCHARTEREDMutualfundhasitsownimageandgoodwillinthefundmarket,itshouldbeacontinued.



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MUTUALFUND4.4)STRATEGICALSUGGESTIONForsellingthemutualfundtothecustomerstheFABconceptisthebestoptiontobefollowedbythecompany.TheapplicationofFABconceptwillreallyhelpthecompanytoboostupitssaleofmutualfundstovariousnewcustomers.Thisconceptwillwellguideawaytoreachtothemaximumofcustomers.

FABincludesFFeaturesAAdvantages&BBenefits

Features:Forsuccessofaproduct,itmusthaveextranewfeaturesthanexistingone.Advantages:Theseextrafeaturesshouldprovidemoreadvantagetocustomersinotherways.Benefits:Onemustlookthatthisnewfeaturesandadvantagesmustbenefitthecustomersshowonlythecustomerswillbuytheproduct.

TheFABingconceptfocusesonthequalityandnewfeaturesthataspirecustomerstobuyit.Aspirationinthecustomeristhebasicflowofmotivationtobuyanyproduct.Hencetheproductshouldincludeallthenewfeaturesofwhichismoreadvantageousandbenefitstothecustomers.

ThusthecompanymusttargettoAddnewfeaturesinitspolicies.Focusonadvantageofitspolicies.Salethebenefitstothecustomers.



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MUTUALFUND4.5)CONCLUSION:FinallyIwouldliketoconcludemystudybysayingthattheSTANDARDCHARTEREDMutualfundisoneofthefastestgrowingmutualfundcompanyinIndiawhichfulfillstheneedsofnewandexistinginvestors.TheSTANDARDCHARTEREDMutualfundalsogivesawaytoforthcominginvestors.

Mutualfundisanemerginginvestmentalternativewhichhasgrownsofatlyinfewdecadesanddefinitelyitwillbethepowerfulindustryinfuture.

Themutualfundisoneofthesafeinvestmentalternativeinwhichthenewinvestor,whobelongtolimitedsalariedgroup,liketoinvestinthesekindofmutualforsteadyandlimitedyieldwithlimitedrisk,taxbenefit.FromtheaboveresponsesofquestionnairewecansaythatInvestorsarestillnotverymuchawareaboutmutualfund.Equityfundismostpreferablefund.Advertisementisoneofthewaystoexploremutualfund.AMCshouldbemorefocusesonfundperformance.Thetaxbenefitsonmutualfundsmadeaturningpointtoitsinvestors.Companyshouldreducetheinitialamountofmutualfundschemesso,itcoverslotofcustomers.Banksismostpreferableinvestmentonthebasisofsafety.



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MUTUALFUNDBIBLIOGRAPHYWebsites:www.mutualfundsindia.comwww.amfi.comwww.mutualfunds.comwww.bseindia.comwww.sebi.comwww.sebi.gov.inwww.capitalmarket.comwww.moneycontrol.comwww.alliancecapitalindia.com

Books1.DavidA.Aker,V.Kumar&GeorgeS.Day(2002),JohnWiley&Sons,INC,Marketingresearch.C.R.Kothari(2003),NewAgeInternational(p)Ltd,ResearchmethodologyV.A.Avadhani(2003).HimalayaPublishers,SecurityAnalysisandPortfolioManagement.Philipkotler,marketingmanagementG.C.beri,Businessstatistics.Securityanalysis,PrasannaChandra.Mutualfunds-managementandworkingby:-lalitk.Bansal

2.3.

4.5.6.7.



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MUTUALFUNDQuestionnaire:-

1)Name:2)Occupation:3)Yourmonthlyincome:a)5000-10000b)10000-15000c)15000-20000d)Morethan200004)Howmuchareyousaving?a)1000-4000b)4000-7000c)7000-10000d)Morethan100005)Doyouwanttoinvest?a)Yesb)Noc)Cannotsay6)Doyouknowaboutmutualfund?a)Yesb)No7)Wheredoyouwanttoinvest?a)Bankdepositeb)Stockmarketc)Insuranced)Mutualfunde)debenturef)Derivativesg)BondsSRMUNIVERSITY[SCHOOLOFMANAGEMENT]


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MUTUALFUND8)Ifyouwanttoinvestinmutualfund,why?a)Morereturnb)Safetyc)Limitedriskd)Capitalappreciatione)Systematicinvestment9)Howmuchdoyouwanttoinvestinmutualfund?a)1000-4000b)4000-7000c)7000-10000d)Morethan1000010)DoyouknowaboutSTANDARDCHARTERDMutualfund?a)Yesb)No11)HaveyouinvestedinSTANDARDCHARTEREDMutualfund?a)Yesb)No12)Ifyes,whyhaveyouinvestedinSTANDARDCHARTEREDmutualfund?a)Forbetterreturnb)Forminimumriskc)Fortaxbenefitd)ForCapitalappreciation13)Inwhichschemeyouhaveinvested?a)Equityschemeb)Debtschemec)Balancedfundschemed)EquitylinkedsavingschemeSRMUNIVERSITY[SCHOOLOFMANAGEMENT]


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MUTUALFUND14)WhatattractsyoumostinSTANDARDCHARTEREDMutualfund?a)Systematicinvestmentplan(SIP)b)Limitedinvestmentc)Proficiencyd)Betterfundallocatione)DiversificationofYourfund15)InwhichschemeofSTANDARDCHARTEREDMutualfundwouldyouliketoinvest?a)Equity/growthfundSchemeb)Debtfundc)ChildrengiltfundSchemed)Liquidfundscheme16)InhowmanyschemesofSTANDARDCHARTEREDMutualfundwouldyouliketoinvest?a)1b)2c)3d)Inall17)Haveyouinvestedinanyothermutualfund?a)Yesb)No18)Ifyouhaveinvestedinmutualfund,theninwhichmutualfundyouhaveinvested?a)PrudentialICICImutualfundb)Reliancemutualfundc)Birlasunlifemutualfundd)STANDARDCHARTEREDMutualfunde)SBImutualfundf)Others



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MUTUALFUND19)WouldyouliketosuggestotherstoinvestinSTANDARDCHARTEREDmutualfund?a)Yesb)No20)Ifyes,then,forwhichbenefityousuggestothertoselecttheSTANDARDCHARTEREDmutualfund?a)Goodreturnb)Taxbenefitc)Futurebenefitd)Capitalappreciation

THANKYOU!!!!



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