Mutual Fund Project

BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED
LEGENDS
SEBI: Security Exchange Board Of India NSE: National Stock Exchange MCX: Multi Commodity Exchange RBI: Reser e Bank Of India !"#C: !ousing "e elo$ment #inance Cor$oration India ICICI: Industrial Credit In estment Cor$oration Of India %M#I: %ssociation Of Mutual #und in India %&M: %sset &nder Management &'I: &nit 'rust Of India &S()*: &NI' SC!EME O# +,)* &-I.: &nit -inked Insurance .lan N%/: Net %sset /alue %MC: %sset Management Com$any C%MS: Com$uter %ge Management Ser ice E-SS: E0uity -inked Sa ing Schemes '(BI--: 'reasury Bill 1(SEC: 1o ernment Securities MMM#s: Money Market Mutual #unds MI.s: Monthly In estment .lans O'CEI: O er 'he 'rade Exchange Of India CRI-: Credit Resources International -imited BS"-: Birla Sun -ife "istri2ution Com$any -imited M#s: Mutual #unds
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EXECUTIVE SUMMARY
'he $ro6ect title is 7in estment $attern of 2usiness $eo$le8 com$leted in Biral Sun -ife "istri2ution9 'he $ro6ect 5as to study the in estment $attern of the 2usiness men in Mutual #unds9 Biral Sun -ife #inancial Ser ices offers a range of financial ser ices for resident Indians and Non Residents Indians9
Mutual #unds are in estment $roducts that o$erate on the $rinci$les of :Strength in Num2ers;9 'hey collect money from a large grou$ of in estors4 $ool it together4 and in est it in arious securities in line 5ith their o26ecti e9
'he o26ecti e of study is to understand the 2eha ior of 2usiness class 5ith res$ect to in estment .attern of 2usiness $eo$le of MI"C <Maharastra Industrial "e elo$ment Cor$oration= Bhosari .une9 .otential for the mutual fund and also to kno5 the a5areness of mutual fund ser ice offered 2y the com$any9
In this regard to I ha e collected 2oth $rimary and secondary data9 .rimary data through the 0uestionnaire and inter ie5 to different ty$es of 2usiness $eo$le in MI"C Bhosari .une9 Secondary data through arious maga>ines4 5e2sites and external ex$erts9
%ccording to the sur ey conducted on +?? 2usiness men it 5as found that only fe5 in estors had made in estment in mutual funds4 5hile the rest of them had ne er looked 2eyond 2ank de$osits and insurance e en though their $ercentage of sa ings is more9 Most of the in estors do not $refer mutual fund9
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Objectives an Resea!c" Met"# #$#%&

Objective +9 'o understand the 2eha ior $attern of 2usiness class 5ith res$ect to in estments9 @9 'o test the a5areness of arious in estment $roducts among the 2usiness class9
A9 Build relations 5ith the ne5ly interested 2usiness class
Resea!c" Met"# #$#%&'

C#nc$(sive !esea!c"
'he research undertaken 5as conclusi e research as the data needs 5ere clear9 'he research 5as conducted to study a2out the in estment $attern of 2usiness $eo$le9
Sa)*$in% *!#cess
P#*($ati#n'+ E$e)ent' the research 5as restricted to 2usiness $eo$le9 E,tent' Bhosari Industrial %rea4 .une
Sa)*$e si-e'
'he total sam$le si>e consists of +?? 2usiness $eo$le9
Sa)*$in% )et"# '+ N#n *!#babi$it&'+ 'he 2usiness $eo$le 5ere selected on the 2asis of con enience9
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Data C#$$ecti#n'+
#or the research $ur$ose the data is collected in the form of .rimary data and Secondary data9 .rimary data is collected in the form of Structured Buestionnaire9 Secondary data is collected from arious Boucher;s4 Books4 Maga>ines and Ce2 sites9
P!i)a!& Data'+
.rimary data is collected through direct inter ie5s and tele$honic inter ie5s9 'he data is collected from the 2usiness $erson through 0uestionnaires 5hich 5as $re$ared de$ending u$on the need of study9 % 0uestionnaire 5as $re$ared to collect the data structured
Sec#n a!& Data'+

'he source of secondary data 5ere $u2lished Dournals4 maga>ines4 like in estime and 5e2 sites4 .../a)0i/c#) .../in iain0#$in/c#) .../bi!$as(n$i0e/c#) .../)(t(a$0(n in ia/c#) .../va$(e!ese!c"#n$ine/c#)
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Li)itati#ns'+
Sam$le si>e is ery small as com$ared to the total $o$ulation9 Most of the 2usiness $eo$le don;t fi e out the exact in est figures their assets and their finical $lanning 'he method 5hich is a$$lied for the data collection may not 2e right -ack of kno5ledge in the sur ey sam$le a2out the mutual funds9 'he result o2tained from the sam$le may not 2e the result of the 5hole $o$ulation9
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Int!# (cti#n t# M(t(a$ F(n s

% mutual fund is the ideal in estment ehicle for today;s com$lex F modern financial scenario9 Markets for en0uiry shares 2onds and other fixed income instruments4 real estate4 deri ati es and other assets ha e 2ecome mature and information dri en9 .rice changes in these assets are dri en 2y glo2al e ents occurring in fara5ay $laces9 % ty$ical indi idual is unlikely to ha e the kno5ledge4 skills4 inclination and time to kee$ track of e ents4 understand their im$lications and act s$eedily9 %n indi idual also finds it difficult to kee$ track of o5nershi$ of this assets4 in estments4 2rokerage dues F 2ank transactions etc9 % mutual fund is the ans5er to all these situations9 It a$$oints $rofessionally 0ualified and ex$erienced staff that manages each of these functions on a full time 2ases9 'he large $ool of money collected in the fund allo5s it to hire such staff at a eryG lo5 cost to each in estor9 In effect the mutual fund ehicle ex$loits economies of scale in all three areas H research4 in estments4 transaction $rocessing9 Chile the conce$t of indi idual coming together to in est the money collecti ely is not ne54 the mutual fund in its $resent form is a @? th century $henomenon9 In fact mutual funds gained $o$ularity only after the Second Corld Car9 1lo2ally there are thousands of firms offering tens of thousands of mutual funds 5ith different in estment o26ecti es9 'oday mutual funds collecti ely manage almost as much as or more money as com$ared to 2anks9 'o get a 2etter understanding of mutual funds it is necessary to kno5 the industry in detail9 In the follo5ing sections a detailed descri$tions of the mutual funds industry 5ill 2e discussed9
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C#nce*t #0 a )(t(a$ 0(n

% mutual fund is a common $ool of money into 5hich in estors $lace their contri2utions that are to 2e in ested 5ith a stated o26ecti e9 'he o5nershi$ of the fund is thus 6oint or mutual and the fund 2elongs to all in estors9 % single in estor;s o5nershi$ of the fund is in the same ratio as the amount of contri2ution made 2y him or 2ears to the total amount of the fund9
Meanin% #0 M(t(a$ F(n

Mutual #unds are in estment $roducts that o$erate on the $rinci$les of :Strength in Num2ers;9 'hey collect money from a large grou$ of in estors4 $ool it together4 and in est it in arious securities in line 5ith their o26ecti e9 'hey are an alternati e to in esting directly9 % more con enient alternati e yet no less re5arding9 'ake stocks4 trading into the market 2y yourself 5ould mean kno5ing at the ery least4 ho5 to analy>e and track com$anies4 the 5ay of the market and the intermediaries 5ho 5ill hel$ you 2uy and sell shares9 % mutual fund that in ests in stocks relie es you of all such hassles4 5hile gi ing you the same in estment o$tion for indi idual;s handica$$ed 2y a lack of in esting acumen or time4 or generally disci$lined to take charge of their $ersonal finances9
Mutual funds are not magic in estment ehicles that do it all you;ll ha e to come to terms 5ith the fact that they assure neither returns nor the alue of yours original in estment9 Iou;ll ha e to acce$t the reality that e en they4 5ho are su$$osedly ex$erts in in estments matter4 can go 5rong9 'hese are inherent risks4 2ut these can 2e managed9 Mutual funds offer se eral ad antages that make them a $o5erful and con enient 5ealth creation ehicle 5orthy of yours consideration
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C"a!acte!istics #0 a M(t(a$ F(n

% Mutual fund actually 2elongs to the in estors 5ho ha e $ooled their funds9 'he o5nershi$ of the mutual funds is in the hands of the in estors9 In case of mutual fund the contri2utors and the 2eneficiaries of the funds are the same class of $eo$le namely the in estors9 In estment $rofessionals manage a mutual fund and other ser ice $ro iders4 5ho earn a fee for their ser ices $ro ided4 from the fund9 'he $ool of funds is in ested in a $ortfolio of marketa2le in estments9 'he alue of the $ortfolio is u$dated e ery day9 'he in estor;s share in the fund is denominated 2y 7&NI'S89 'he alue of the units changes 5ith the change in the $ortfolio;s alue4 e eryday9 'he alue of one unit of in estment is called as the net asset alue or N%/ 1O2 ARE T1E MUTUAL FUNDS STRUCTURED3 Mutual funds can 2e structured in the follo5ing 5ays: Com$any form4 in 5hich in estors hold shares of the mutual fund9 In this structure4 management of the fund is in the hands of an elected 2oard4 5hich in turn a$$oints in estment managers to manage the fund9 'rust form4 in 5hich the funds of the in estors are held 2y a trust4 on 2ehalf of the in estors9 'he trust a$$oints in estment managers and monitors their functioning in the interest of in estors9 'he com$any form of organi>ation is ery $o$ular in the &nited States9 In India4 mutual funds are organi>ed as trusts9 'he trust is created 2y s$onsor4 5ho is the actually the entity interested in creating the mutual fund 2usiness9 'he trust is either managed 2y a Board of trustees4 or 2y a trustee com$any4 formed for this $ur$ose9 'he in estor;s
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funds are held 2y the trust9
T&*es #0 M(t(a$ F(n s Open-End Funds

%n o$en(ended fund is one that has unit;s a aila2le foe sale and re$urchase at all times9 %n in estor can 2uy or redeem units from the fund itself at a $rice 2ased on the Net %sset /alue <N%/= $er unit9 N%/ $er unit is o2tained 2y di iding the amount of the market alue of the fund;s assets 2y the num2er of units outstanding9 'he num2er of outstanding goes u$ or do5n e ery time the fund issues ne5 units or re$urchase existing units9
C$#se +En F(n s

&nlike an o$en(end fund4 the :unit ca$ital :of a closed(ended fund is fixed4 as it makes a one(time sale of a fixed num2er of units9 Closed(ended funds do not allo5 in estors 2ut or redeem units directly from the funds9 !o5e er4 to $ro ide the much( needed li0uidity to in estors4 any closed(end funds get themsel es listed on stock exchanges9 'rading through a stock exchange ena2les in estors to 2uy or sell units of a closed(end mutual fund from each other9
L#a an N#+L#a F(n s

Marketing of a ne5 mutual fund scheme in ol es initial ex$enses9 'hese ex$enses may 2e reco ered from the in estors in different 5ays at different times9 'hree usual 5ays in 5hich a fundLs sales ex$enses may reco er from the in estors are: +9 %t the time of in estorLs entry into the fundMscheme4 2y deducting a s$ecific amount from his Initial contri2ution4 or @9 By charging the fundMscheme 5ith a fixed amount each year4 during the stated num2er of years4 or
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BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED A9 %t the time of the in estorLs exit from the fundMscheme4 2y deducting a s$ecified amount from the redem$tion $roceeds $aya2le to the in estor9 'hese charges made 2y the fund managers to the in estors to co er distri2utionMsalesMmarketing ex$enses often called NloadsN9 'he load charged to the in estor at the time of his entry into a scheme is called 7front(end or entry loadN9 'he load amount charged to the scheme o er $eriod of time is called a deferred load9 'he load that the in estor $ays at the time his exit is called a N2ack(end or exit loadN9 Some funds may also charge different amounts of loads to the in estors4 de$ending u$on ho5 many years the in estor is stayed 5ith the fundG the longer the in estor stays 5ith the fund4 less the amount of8 exit loadN he charged9 'his is called 7contingent deferred sales chargeN9 #unds that charge front(end4 2ack(end or deferred loads are called load funds9 #unds that make no such charges or loads for sales ex$enses are called no(load funds9 % load fundLs declared N%/ does not include the loads9 !ence4 a ne5 in estor must add any front(end load amount $er unit the N%/ $er unit to calculate his $urchase $rice9 %n outgoing in estor needs to deduct the amount of any 2ack(end load $er unit from his sale $rice $er unit to get to kno5 the net sale $roceeds he 5ould recei e Ta, E,e)*t an N#n+Ta, E,e)*t F(n s 1enerally4 5hen a fund in ests in tax(exem$t securities4 it is called a tax(exem$t fund9 In the &9S9%4 #or exam$le4 munici$al 2onds $ay interest that is tax(free4 5hile interest on cor$orate and other 2onds is taxa2le9 In India4 after the +,,, &nion 1o ernment Budget4 all of the di idend income recei ed from many of the Mutual funds is tax(free in the hands of the in estor9 !o5e er4 funds other than E0uity #unds ha e to $ay a distri2ution tax4 2efore
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BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED distri2uting income to in estors9 In other 5ords4 e0uity mutual fund schemes are tax( exem$t in estment a enues4 5hile other funds are taxa2le for distri2uta2le income9
Chile Indian Mutual funds currently offer tax(free income4 any ca$ital gains arising out of sale of fund nits are taxa2le9 %ll these tax considerations are im$ortant in the decision on 5here to in est as the tax exem$tions or concessions alter returns o2tained from these in estments9 !ence4 classification Of Mutual funds from the taxa2ility $ers$ecti e has great significance for in estors9 B!#a F(n t&*es b& Nat(!e #0 Invest)ents Mutual funds may in est in e0uities4 2onds or other fixed income securities4 or short(term money market securities9 So 5e ha e E0uity4 Bond and Money Market #unds9 %ll of them in est in financial assets9 But there are funds that in est in $hysical assets9 #or exam$le4 5e may ha e 1old or other .recious Metals #unds4 or Real Estate #unds9 B!#a F(n T&*es b& Invest)ent Objective In estors and hence the mutual funds $ursue different o26ecti es 5hile in esting9 'hus4 1ro5th #unds in est for medium to long(term ca$ital a$$reciation9 Income #unds in est to generate regular income4 and less for ca$ital a$$reciation9 /alue #unds in est in e0uities that are considered under( alued today4 5hose alue 5ill 2e unlocked in the future9 B!#a F(n T&*es b& Ris4 P!#0i$e 'he nature of a fundLs $ortfolio and its in estment o26ecti e im$ly different le els of risk undertaken9 #unds are therefore often grou$ed in order of risk9 'hus4 E0uity funds ha e a greater risk of ca$ital loss than a "e2t #und that seeks to $rotect the ca$ital 5hile looking for income9 Money Market #unds are ex$osed to less risk than e en the Bond #unds4L since they in est in short(term fixed income securities4 as com$ared to longer(
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BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED term $ortfolios of Bond #unds9
M#ne& Ma!4et F(n s Often considered the lo5est rung order of risk le el4 Money Market #unds in est in securities of a short(term nature4 5hich generally means securities of less than one(year maturity9 'he ty$ical4 short(term interest(2earing instruments these funds in est in include 'reasury Bills issued 2y go ernments9 Certificates of "e$osit issued 2y 2anks and Commercial .a$er issued 2y com$anies9 In India Money market Mutual funds also in est in the inter(2ank call money market9 'he ma6or strengths of money market funds are the li0uidity and safety or $rinci$al that in estors can normally ex$ect from short(term in estments9 Gi$t F(n s 1ilts are go ernment securities 5ith medium to long(term maturities4 ty$ically of o er one year <under one(year instruments 2eing money market securities=9 In India 5e ha e no5 seen the emergence of 1o ernment Securities or 1ilt #unds that in est in go ernment $a$er called dated securities <unlike 'reasury Bills that mature less 'hese funds ha e little risk of default and hence offer 2etter $rotection of $rinci$al9 !o5e er4 in estors ha e to recogni>e the $otential changes in alues of de2t securities held 2y the funds that are caused L2y changes in the market $rice of de2t securities 0uoted on the stock exchanges <Dust like the e0uities=9"e2t securitiesL $rices fall 5hen interest rate le els increase <and ice ersa=9 Debt F(n s 5#! Inc#)e F(n s6 Next in the order of risk le el4 5e ha e the general category "e2t #unds9 "e2t funds in est in de2t instruments issued not only 2y go ernments4 2ut also 2y $ri ate com$anies4 2anks and financial institutions and other entities such as infrastructure
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BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED com$aniesMutilities9
By in esting in de2t4 these funds target lo5 risk and sta2le income for the in estor as their key o26ecti es9 !o5e er4 as com$ared to the money market funds4 they do ha e a higher $rice fluctuation risk4 since they in est longer(term securities9 Similarly com$ared to 1ilt #unds4 general de2t funds do ha e a higher risk of default 2y their 2orro5ers9 "e2t #unds are largely considered as Income #unds as they do not target ca$ital a$$reciation4 look for high current income4 and therefore distri2ute a su2stantial $art of their sur$lus to in estors9 Income funds that target returns su2stantially a2o e market le els can face more risks9 'he Income #unds fall largely in the category of "e2t #unds as they in est $rimarily in fixed income generating de2t instruments9 %gain4 different in estment o26ecti es set 2y the fund managers 5ould result in different risk $rofiles9 Dive!si0ie Debt F(n s % de2t fund that in ests in all a aila2le ty$es of de2t securities4 issued 2y entities across all industries and sectors is a $ro$erly di ersified de2t fund9 Chile de2t funds offer high income and less risk than e0uity funds4 in estors need to recogni>e that de2t securities are su26ect to risk of default 2y the issuer on $ayment of interest or $rinci$al9 % di ersified de2t fund has the 2enefit of risk reduction through di ersification and sharing of any default(related losses 2y a large num2er of in estors9 !ence a di ersified de2t fund is less risky than a narro5(focus fund that in ests in de2t securities of a $articular sector or industry9
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F#c(se Debt F(n s Some de2t funds ha e a narro5er focus4 5ith less di ersification in its in estments9 Exam$les include sector4 s$eciali>ed and offshore de2t funds9 'hese funds are similar to the funds descri2ed later in the e0uity category exce$t that de2t funds ha e a su2stantial $art of their $ortfolio in ested in de2t instruments and are therefore more income oriented and inherently less risky than e0uity funds9 !o5e er Lthe Indian financial markets ha e demonstrated that de2t funds should not 2e automatically considered to 2e less risky than e0uity funds4 as there ha e 2een relati ely large default 2y issuers of de2t and many funds ha e non($erforming assets in their de2t $ortfolios9 It should also 2e recogni>ed that market alues of de2t securities 5ill also fluctuate more as Indian de2t markets 5itness more trading and interest rate olatility in the future9 1i%" Yie$ Debt F(n s &sually4 "e2t #unds control the 2orro5er default risk 2y in esting in securities issued 2y 2orro5ers 5ho are rated 2y credit rating agencies and are considered to 2e of Nin estment gradeN9 'here are !igh Iield "e2t #und that seek to o2tain higher returns 2y in esting in de2t instruments that are considered N2elo5 in estment grade89; Clearly4 these funds are ex$osed to higher risk9 In &9S9%94 funds that in est in de2t instruments that are not 2acked 2y tangi2le assets and rated 2elo5 in estment grade <$o$ularly kno5n as 6unk 2onds= are called Dunk Bond #unds9 'hese funds tend to 2e more olatile than other de2t funds4 although they may earn higher returns as a result of the higher risks taken9
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Ass(!e Ret(!n F(n s #undamentally4 mutual funds hold assets in trust for in estors9 %ll returns and risks are for account of the in estor9 'he role of the fund Manager is to $ro ide the $rofessional management ser ice and to ensure the highest $ossi2le return consistent 5ith the in estment o26ecti e of the fund9 %ssured return de2t fund certainly reduce the risk le el9
Fi,e Te!) P$ans #ixed 'erm .lans are closed(end4 2ut usually for shorter term(less than a year9 Being of short duration4 they are not listed on a stock exchange9 %s in estors mo e from "e2t #und category to E0uity #unds they face increased risk le el9 !o5e er4 there is a large ariety of E0uity #unds and all of them are not e0ually risk($rone9 In estors and their ad isors need to sort out and select the right e0uity fund that suits their risk a$$etite E0uity funds in est a ma6or $ortion of their cor$us in e0uity shares issued 2y com$anies4 ac0uired directly in initial $u2lic offerings or through the secondary market9 E0uity funds 5ould 2e ex$osed to the e0uity $rice fluctuation risk at the market le el at the industry or sector le el and at the com$any(s$ecific le el9 E0uity #unds Net %sset /alues fluctuate 5ith all these $rice mo ements9 'hese $rices are caused 2y all kinds of external factors4 $olitical and social as 5ell as economic9 !ence4 E0uity #unds are generally considered at the higher end of the risk s$ectrum among all funds a aila2le in the market9 E0uity funds ado$t different in estment strategic resulting in different le els of risk9 !ence4 they are generally se$arated into different ty$es in terms of their in estment styles9 Some of the ma6or ty$es of e0uity funds4 arranged in order of higher to lo5er risk le el9
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A%%!essive G!#.t" F(n s 'here are many ty$es of stocksMshares a aila2le in the marketG Blue Chi$s that are recogni>ed market leaders4 less researched stocks that are considered to ha e future gro5th $otential4 and e en some s$eculati e stocks of some5hat unkno5n or un$ro en issuers9 #und managers seek out and in est in different ty$es of stocks in line 5ith their o5n $erce$tion of $otential returns and a$$etite for risk9 %ggressi e gro5th funds target maximum ca$ital a$$reciation4 in est in less researched or s$eculati e shares and may ado$t s$eculati e in estment strategies to attain their o26ecti e of high returns for the in estor9 Conse0uently4 they tend to 2e more olatile and riskier than other funds9 G!#.t" F(n s 'hese funds in est in com$anies 5hose earnings are ex$ected to rise at an a2o e a erage rate9 'hese com$anies may 2e o$erating in sectors like technology considered ha ing a gro5th $otential4 2ut not entirely un$ro en and s$eculati e9 'he $rimary o26ecti e of 1ro5th #unds is ca$ital a$$reciation o er a three to fi e year s$an9 1ro5th funds are therefore less olatile than funds that target aggressi e gro5th9
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S*ecia$t& F(n s 'hese funds ha e a narro5 $ortfolio orientation and in est in only com$anies that meet $re(defined criteria9 #or exam$le4 at the height of the South %frican a$artheid regime4 many funds in the &9S9 offered $lans that $romised not to in est in South %frican com$anies9 Some funds may 2uild $ortfolios that 5ill exclude 'o2acco com$anies9 #unds that in est in $articular regions such as the Middle East or the %SE%N countries are also an exam$le of s$ecialty funds9 Cithin the S$ecialty #unds category4 some funds may 2e 2road(2ased in terms of the ty$es of in estments in the $ortfolio9 !o5e er4 most s$ecialty funds tend to 2e concentrated funds4 since di ersification is limited to one ty$e of in estment9 Clearly4 concentrated s$ecialty funds tend to 2e more di ersified funds9 Sect#! F(n s Sector fundsL $ortfolios consist of in estments in only one industry or sector of the market such as Information on 'echnology4 .harmaceuticals or #ast Mo ing Consumer 1oods that ha e recently 2een launched in India9 Since sector funds do not di ersify into multi$le se Offshore #unds9 O00s"#!e F(n s 'hese funds in est in e0uities in one or more foreign countries there2y achie ing di ersification across the countryLs 2orders9 !o5e er they also ha e additional risks ( such as the foreign exchange rate risk ( and their $erformance de$ends on the economic conditions of the countries they in est in9 Offshore E0uity #unds may in est in a single country <hence riskier= or many countries <hence more di ersified=9 olatile than
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S)a$$ Ca* E7(it& F(n s 'hese funds in est in shares of com$anies 5ith relati ely lo5er market ca$itali>ation than that of 2ig4 2lue chi$ com$anies9 'hey may thus 2e more olatile than other funds4 as smaller com$aniesL shares are not ery li0uid in the markets9 In terms of risk characteristics4 small com$any funds may 2e aggressi e(gro5th or 6ust gro5th ty$e9
O*ti#n Inc#)e F(n s O$tion Income #unds 5rite o$tions on a significant $art of their $ortfolio9 Chile o$tions are ie5ed as risky instruments4 they may actually hel$ to control olatility4 if $ro$erly used9 Conser ati e o$tion funds in est in large4 di idend $aying com$anies4 and then sell o$tions against their stock $ositions9 'his ensures a sta2le Income stream in the form of $remium income through selling o$tions and di idends9 Dive!si0ie E7(it& F(n s % fund that seeks to in est only in e0uities exce$t for a ery small $ortion in li0uid money market securities4 2ut is not focused on any one or fe5 sectors or shares4 may 2e termed a di ersified e0uity funds seek to reduce the sector or stock s$ecific risks through di ersification9 'hey ha e mainly market risk ex$osure9 "i ersified funds arc clearly at the lo5er risk le el than gro5th funds
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E7(it& Lin4e Savin% Sc"e)es' An In ian Va!iant In India4 the in estors ha e 2een gi en tax concessions to encourage them to in est in e0uity markets through these s$ecial schemes9 In estment in these schemes entitles the in estor to claim an income tax re2ate4 2ut usually has a lock(in $eriod 2efore the end of 5hich funds cannot 2e 5ithdra5n9 'hese funds are su26ect to the general SEBI in estment guidelines for all e0uity funds4 and 5ould 2e in the "i ersified E0uity #und category9 !o5e er4 as there are no s$ecific restrictions on 5hich sectors these funds ought to in est in4 in estors should clearly look for 5here the #und Management Com$any $ro$oses to in est and accordingly 6udge the le el of risk in ol ed9 E7(it& In e, F(n s %n index fund tracks the $erformance of a s$ecific stock market index9 'he o26ecti e is to match the $erformance of the stock market 2y tracking an index that re$resents the o erall market9 'he fund in ests in shares that constitute the index and in the same $ro$ortion as the index9 Since they generally in est in a di ersified market index $ortfolio4 these funds take only the o erall market risk4 5hile reducing the sector and stock s$ecific risks through di ersification9
Va$(e F(n s /alue #unds try to seek out fundamentally sound com$anies 5hose shares arc currently under($riced in the market9 /alue #unds 5ill add only those shares to their $ortfolios that are selling at lo5 $rice(earnings ratios4 lo5 market to 2ook alue ratios and are under alued 2y other yardsticks9 /alue funds ha e the e0uity market $rice fluctuation risks4 2ut stand often at a lo5er end of the risk s$ectrum in com$arison 5ith the 1ro5th #unds9 /alue Stocks may 2e from a
3ousali Institute of Management Studies4 "har5ad +,
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED large num2er of sectors and therefore di ersified9 E7(it& Inc#)e 0(n s &sually income funds are in the "e2t #unds category4 as they target fixed income in estments9 !o5e er4 there are e0uity funds that can 2e designed to gi e the in estor a high le el of current income along 5ith some steady ca$ital a$$reciation4 in esting mainly in shares of com$aniesL 5ith high di idend yields9 1&b!i F(n s 8 9(asi E7(it&:9(asi Debt Money market holdings 5ill constitute a lo5er $ro$ortion in the o erall $ortfolios of de2t or e0uity funds9 'here are funds that4 ho5e er4 seek to hold a relati ely 2alanced holding of de2t and e0uity securities in their $ortfolio9 Such funds are termed Nhy2rid fundsN as they ha e a dual e0uityM2ond focus9 Ba$ance F(n % 2alanced fund is one that has a $ortfolio com$rising de2t instruments4 con erti2le securities4 and .reference e0uity shares9 'heir assets are generally held in more or less e0ual $ro$ortions 2et5een de2tMmoney market securities and e0uities9 By in esting in a mix of this nature4 2alanced funds seek to attain the o26ecti es of income4 moderate ca$ital a$$reciation and $reser ation of ca$ital4 and are ideal for in estors 5ith a conser ati e and long(term orientation9 G!#.t"+an +Inc#)e F(n s &nlike income(focused or gro5th(focused funds4 these funds seek to strike a 2alance 2et5een ca$ital a$$reciation and income for the in estor9 'heir $ortfolios are a mix 2et5een com$anies 5ith good di idend $aying records and those 5ith $otential for ca$ital a$$reciation9 'hese funds 5ould 2e less risky than $ure gro5th funds4 though more risky than income fund9
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C#))# it& F(n s Commodity funds s$eciali>e in in esting in different commodities directly or through shares of commodity com$anies or through commodity future contracts9 S$eciali>ed funds may in est in a single commodity or a commodity grou$ such as edi2le oils or grains4 5hile di ersified commodity funds 5ill s$read their assets o er many commodities9 Rea$ Estate F(n s S$eciali>ed Real Estate #unds 5ould in est in Real Estate directly4 or may fund real estate de elo$ers4 or lend to them4 or 2uy shares of housing finance com$anies or may e en 2uy their securities assets9 'he funds may ha e a gro5th orientation or seek to gi e in estors regular income9 'here has recently 2een an initiati e to offer such an income fund 2y the !"#C9
3ousali Institute of Management Studies4 "har5ad @+
TYPES OF MUTUAL FUND'+

MUTUALFUND TYPE 21O S1OULD INVEST Objective Invest)ent *#!t0#$i# Ris4 I ea$ invest)ent
"i ersified e0uity funds
Moderate and aggressi e in estors %ggressi e in estors Moderate in estors
!igh gro5th
E0uity shares
!igh
+(Ayears
Sector fund Index fund
!igh gro5th 'o generate returns 5hich are similar to the returns of the res$ecti e index -ong(term gro5th 5ith tax sa ing 1ro5th and regular income
E0uity shares .ortfolio like BSE9 Sensex4 Nifty4etc
/ery high Returns of N%/4 ery 5ith index $erformance
+(Ayears +(Ayears
E0uity linked sa ing scheme<E-SS= Balance fund
Moderate and aggressi e in estors Moderate and aggressi e in estors
E0uity shares
!igh
+(Ayears
Balance ratio of e0uity and de2t fund to ensure higher returns at lo5er risk .redominantly de2enture go ernment securities4 cor$orate 2onds 1o ernment securities Call money commercial $a$ers4 treasury 2ill short(term 1(secs 'reasury 2ills4 certificate of de$osits 4 commercial $a$ers4 securities call money
Ca$ital market risk and interest rate risk Credit risk and interest rate risk
O er @ years
Bond funds
Salaried and conser ati e in estors
Regular income
O er ,(+@months
1ilt fund
Salaried and conser ati e in estors In estors 5ith sur$lus short( term fund
Security and income -i0uidity and moderate income
Interest rate risk -inked interest rate risk
O er +@ months A5eeks Amonths
Short(term funds
-i0uidity funds
In estors 5ho $ark their fund in current account or short term 2ank fixed
-i0uidity Omoderate income $reser ation of ca$ital
Negligi2le Risk
@days A5eeks
3ousali Institute of Management Studies4 "har5ad @@

de$osits
Benefits of Mutual Fund

P#!t# $i# Dive!si0icati#n Return on in estment from 6ust one industry or sector are su26ect to ho5 5ell or $oorly the industry fares9 But 5ith mutual fund one;s money is in ested across different sector9 'his reduces the risk of lo5 returns on in estments4 2ecause rarely do different sectors decline at the same time9 P!#0essi#na$ Mana%e)ent % mutual fund dra5s on the $rofessional ex$ertise of a team of research analysts and fund managers in in esting one;s sa ing in a num2er of securities9 Re (cti#n #0 T!ansacti#n C#sts 'he $urchase or sale of financial assets through the exchanges entails a certain $ro$ortion of changes kno5n as transaction made9 In estments through mutual fund reduce these costs considera2ly as they en6oy the 2enefits of economies of scale9 Li7(i it& If one in ests in an o$en(ended mutual fund4 one can claim the money at net asset alue related $rices from the mutual fund itself9
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C#nvenience an F$e,ibi$it& One has access to u$(to(date information on the to different assets and the fund manager;s in estment strategy9 Ret(!n P#tentia$ In esting in a Mutual #und reduces $a$er5ork and hel$s to a oid many $ro2lems such as 2ad deli eries4 delayed $ayments and follo5 u$ 5ith 2rokers and com$anies9 Mutual #unds sa e time and make in esting easy and con enient9 T!ans*a!enc& 'hrough features such as regular in estment $lans4 regular 5ithdra5al $lans and di idend rein estment $lans4 one can systematically in est or 5ithdra5 funds according to once needs and con enience9 A00#! abi$it& In estors indi idually may lack sufficient funds to in est in high(grade stocks9 % mutual fund 2ecause of its large cor$us allo5s e en a small in estor to take the 2enefit of its in estment strategy9 alue of the in estment in
addition to the in estments that ha e 2een made 2y the scheme4 the $ro$ortion allocated
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BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED 2e$$ Re%($ate
%ll Mutual #unds are registered 5ith SEBI and they function 5ithin the $ro isions of strict regulations designed to $rotect the interests of in estors9 'he o$erations of Mutual #unds are regularly monitored 2y SEBI9
M(t(a$ F(n In (st!&+A P!#0i$e

O!i%in #0 M(t(a$ F(n s
'he Mutual #und industry traces its roots to England in the mid H +K??;s9 'he enactment of t5o British la5s4 the 6oint stock com$anies %cts of +K)@ and +K)J4 $ermitted in estors4 for the first time to share in the $rofits of an in estments enter$rise4 and limited in estor lia2ility to the amount of in estment ca$ital de oted to the enter$rise9 Shortly thereafter4 in +K)K4 the #oreign and Colonial 1o ernment 'rust formed in -ondon9 'his trust resem2led a mutual fund in 2asic structure4 $ro iding 7the in estor of moderate means the same ad antage as the large ca$italistsP 2y s$reading the in estment o er a num2er of different stocks98 'his conce$t of offering the in estment $otential of financial markets to all indi iduals s$a5ned additional 7in estment com$anies8 in Britain and Scotland and among other things hel$ed finance the de elo$ment of the $ost(ci il 5as &S economy9 Most of the early British in estment com$anies or trusts resem2led today;s closed(end funds 2y issuing a fixed num2er of shares to grou$s of in estors 5hose 7$ooled8 assets 5ere in ested in arious com$anies9 'he Scottish %merican In estment 'rust4 formed on #e2ruary +4 +KJA 2y fund $ioneer Ro2ert #leming4 5as significant 2ecause it in ested in the economic $otential of the &nited States Chiefly through %merican railroad 2onds9 Many other trusts follo5ed that not only target in estment in %merica4 2ut more im$ortantly led to the introduction of in estment fund conce$t on &9 S shares in the late +K??;s and early +,??;s9
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1ist#!& #0 t"e In ian M(t(a$ F(n In (st!&

'he mutual fund industry in India started in +,)A 5ith the formation of &nit 'rust of India4 at the initiati e of the 1o ernment of India and Reser e Bank the9 'he history of mutual funds in India can 2e 2roadly di ided into four distinct $hases
Fi!st P"ase 8 ;<=>+?@

&nit 'rust of India <&'I= 5as esta2lished on +,)A 2y an %ct of .arliament9 It 5as set u$ 2y the Reser e Bank of India and functioned under the Regulatory and administrati e control of the Reser e Bank of India9 In +,JK &'I 5as de(linked from the RBI and the Industrial "e elo$ment Bank of India <I"BI= took o er the regulatory and administrati e control in $lace of RBI9 'he first scheme launched 2y &'I 5as &nit Scheme +,)*9 %t the end of +,KK &'I had Rs9)4 J?? crores of assets under management9
Sec#n P"ase 8 ;<?@+;<<A 5Ent!& #0 P(b$ic Sect#! F(n s6

+,KJ marked the entry of non( &'I4 $u2lic sector mutual funds set u$ 2y $u2lic sector 2anks and -ife Insurance Cor$oration of India <-IC= and 1eneral Insurance Cor$oration of India <1IC=9 SBI Mutual #und 5as the first non( &'I Mutual #und esta2lished in Dune +,KJ follo5ed 2y Can 2ank Mutual #und <"ec KJ=4 .un6a2 National Bank Mutual #und <%ug K,=4 Indian Bank Mutual #und <No K,=4 Bank of India <Dun ,?=4 Bank of Baroda Mutual #und <Oct ,@=9 -IC esta2lished its mutual fund in Dune +,K, 5hile 1IC had set u$ its mutual fund in "ecem2er +,,?9
3ousali Institute of Management Studies4 "har5ad @)
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED %t the end of +,,A4 the mutual fund industry had assets under management of Rs9*J4??* crores9
T"i! P"ase 8 ;<<A+BCCA 5Ent!& #0 P!ivate Sect#! F(n s6

Cith the entry of $ri ate sector funds in +,,A4 a ne5 era started in the Indian mutual fund industry4 gi ing the Indian in estors a 5ider choice of fund families9 %lso4 +,,A 5as the year in 5hich the first Mutual #und Regulations came into 2eing4 under 5hich all mutual funds4 exce$t &'I 5ere to 2e registered and go erned9 'he erst5hile 3othari .ioneer <no5 merged 5ith #ranklin 'em$leton= 5as the first $ri ate sector mutual fund registered in Duly +,,A9 'he +,,A SEBI <Mutual #und= Regulations 5ere su2stituted 2y a more com$rehensi e and re ised Mutual #und Regulations in +,,)9 'he industry no5 functions under the SEBI <Mutual #und= Regulations +,,)9 'he num2er of mutual fund houses 5ent on increasing4 5ith many foreign mutual funds setting u$ funds in India and also the industry has 5itnessed se eral mergers and ac0uisitions9 %s at the end of Danuary @??A4 there 5ere AA mutual funds 5ith total assets of Rs9 +4@+4K?E crores9 'he &nit 'rust of India 5ith Rs9**4E*+ crores of assets under management 5as 5ay ahead of other mutual funds9
F#(!t" P"ase 8 since Feb!(a!& BCCA

In #e2ruary @??A4 follo5ing the re$eal of the &nit 'rust of India %ct +,)A &'I 5as 2ifurcated into t5o se$arate entities9 One is the S$ecified &ndertaking of the &nit 'rust of India 5ith assets under management of Rs9@,4KAE crores as at the end of Danuary @??A4 re$resenting 2roadly4 the assets of &S )* scheme4 assured return and certain other schemes9 'he S$ecified &ndertaking of &nit 'rust of India4 functioning under an
3ousali Institute of Management Studies4 "har5ad @J
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED administrator and under the rules framed 2y 1o ernment of India and does not come under the $ur ie5 of the Mutual #und Regulations9
'he second is the &'I Mutual #und -td4 s$onsored 2y SBI4 .NB4 BOB and -IC9 It is registered 5ith SEBI and functions under the Mutual #und Regulations9 Cith the 2ifurcation of the erst5hile &'I 5hich had in March @??? more than Rs9J)4??? crores of assets under management and 5ith the setting u$ of a &'I Mutual #und4 conforming to the SEBI Mutual #und Regulations4 and 5ith recent mergers taking $lace among different $ri ate sector funds4 the mutual fund industry has entered its current $hase of consolidation and gro5th9 %s at the end of Se$tem2er4 @??*4 there 5ere @, funds4 5hich manage assets of Rs9+EA+?K crores under *@+ schemes9 'he gra$h indicates the gro5th of assets o er the ye
GROWTH IN ASSETS UNDER MANAGEMENT
3ousali Institute of Management Studies4 "har5ad @K
Growth of MF
250000 200000 Rs. in Crores 150000 100000 50000 0 Mar- Mar- Mar- Mar- Mar- Mar- Mar65 87 93 03 04 05 06 Year Rs. In Crore
LIST OF MUTUAL FUNDS IN INDIA M(t(a$ F(n S*#ns#!s Yea! #0 Ent!&

Bank s$onsored BOB %sset Management Co9 -td Can Bank In estment Management Ser ices -td94 S9B9I9 #unds Management -td94 &'I %sset Management Co94 . t9 -td94
Bank of Baroda Canara Bank State Bank of India SBI4 .NB4 BOB4 -IC
+,,@ +,KJ +,KJ +,)A
Institutions
19I9C9 %sset Management Co9 -td94 1eneral Insurance Cor$oration F other * Dee an Bhima Sahyoga %sset Management Co9 -td94 Private Sectors Benchmark %sset Management Co9 NIC!E #inancial @??+ .S& 1IC -IC +,K, +,,?
3ousali Institute of Management Studies4 "har5ad @,
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED . t9 -td94 Chola Mandalam %sset Management Co9 -td94 Escorts %sset Management -td94 D9 M9 Ca$ital Management . t9 Ser ices Chola Mandalam In estments Escorts #inance D9M9 Shares and Stock
+,,J +,,) +,,* +,,K +,,E +,,) +,,) +,,E +,,* +,,) @???
-td94 Brokers 3otak Mahindra %sset Management 3otak Mahindra Bank Co9 -td94 Reliance Ca$ital %sset Management Co9 -td94 Sahara %sset Management Co9 . t9 -td94 Sundaram %sset Management Co9 Reliance Ca$ital Sahara India #inance Sunadaram #inance
-td94 'ata %sset Management . t9 -td94 'ata Sons Joint Ventures Predominantly Indian Birla Sun -ife %sset Management Birla 1lo2al #inance . t9 -td94 "9S9.9 Merrill -ynch #und Manager -td94 !"#C %sset Management Co9 -td94 "9S9.9 Merrill -ynch !"#C F Std -ife In estment
Joint Ventures Predominantly Foreign

%lliance Ca$ital %sset Management . t9 -td94 "eutsche %sset Management . t9 -td94 #ranklin 'em$leton %sset Management . t9 -td94 !SBC %sset Manageent . t9 -td94 IN1 In eatment Management . t9 -td94 Morgan Stanley In estment Management . t9 -td94 .rudential ICICI %sset Management . t9 -td94 .rinci$al %sset Management Co9 . t9 -td94 %lliance Ca$ital Management "eutsche %sset Management #ranklin 'em$leton In estments !SBC Security IN1 1rou$ Morgan Stanley .rudential ICICI .rinci$al #inancial Ser ice +,,* @??@ +,,) @??@ +,,, +,,A +,,A +,,*
3ousali Institute of Management Studies4 "har5ad A?
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED Standard Charted %sset Management -td94
< Source: Outlook Money : -aymen;s guide to M&'&%- #&N" =
Standard Charted Bank
@???
Sa$es P!actices in t"e In ian M(t(a$ F(n Ma!4et

A%ent c#))issi#ns %gents are com$ensated 2y the funds through commissions4 commission rates9 In India there are no rules $rescri2ed for go erning the minimum r maximum commissions $aya2le 2y a fund to its agents9 Each fund has discretion to decide the commission structure for its agents9 'hus sundaram $ays commission to its agents as a 2asic rates $lus an incenti e that de$ends on the olume of 2usiness9 In recent times funds ha e 2een $aying commissions in the range of +9E(@ Q on e0uity oriented funds and ?9*(?9K Q on de2t 2ased funds9 !igher commissions are generally $aid in case of in estments that are made 5ith the $ur$ose of taking tax 2enefits4 since in estors are re0uired to lock in their funds for a longer $eriod9 SEBI Re%($ati#ns %lthough SEBI does not $rescri2e the minimum or maximum amount of commission $aya2le 2y a fund to agents under SEBI <M#= Regulations4 +,,)4 all initial ex$enses including Brokerage $aid to agents are limited to ) Q of resources raised under the schemes9 In additions4 SEBI regulated o$en(end funds are authori>ed to charge the in estors are 7entry F exit8 loads to co er the fund distri2ution ex$enses9 'hese loads should not exceed the $ercentage s$ecified in the scheme;s offer document9 In case the agents commissions $aid 2y the fund result in o er all distri2ution ex$enses are to 2e 2orne 2y %MC i9e9 the excess cannot 2e $assed on to the unit holders9 % no H load4 charging no entry or exit loads is authori>ed to charge the schemes 5ith the commissions $aid to agents as $art of the regular management F marketing ex$enses allo5ed 2y SEBI9 SEBI $uts a ca$ on the total ex$enses <including commissions= that can 2e charged to a scheme each year9 %ny excess o er allo5a2le ex$enses is re0uired to 2e 2orne 2y the %MC9
3ousali Institute of Management Studies4 "har5ad A+
Ma!4e! P!actice Some funds $ay the entire commission u$( fronts to the agents <i9e9 at the time of sale of units=4 5hile others $ay a$art of it u$(front and the 2alance in $hases9 'he latter $ractice is kno5n as trail commission9 Some funds follo5 the $ractice of non($aying the 2alance to the agent if the in estor exits the scheme 2efore a s$ecified $eriod or sto$ $aying the commission after the in estor exits 5hene er he does9 On the issue of commissions4 is that of re2ating 2y the agent to the in estor of a $art of the commission recei ed from the fund on the sale to that in estor9 %lthough agent commissions in the in the mutual industry are not at the same le els as in insurance4 in estors ha e come to ex$ect such re2ates from agents of all financial $roducts9 It is $ossi2le in future such re2ates might reduce in future F may e en disa$$ear9 !e distri2utors themsel es 5ill tend to reali>e that they $ro ide useful $rocessing and ad isory ser ices to in estors4 F ha e to incur costs in the $rocess that need to 2e co ered from their 5ell deser e commissions recei ed from the funds A%ents Ob$i%ati#n CommissionMother arrangements are 2et5een the fund and agentM2roker9 Su2( 2rokers ser e as agents of the $rinci$le agent and the fund is not ans5era2le for their acti ities9 Clearly4 gi en the need for and 5ides$read existence of a su2(2roker net5ork in India their role cannot 2e 5ashed a5ay9 But the distri2utors need to make the in estors a5are of 5hom they are dealing 5ith4 5hom the commission re2ate is recei ed from4 F 5hom should they contact in case of any $ro2lems9 %gents are 5ell ad ised to $ractice honesty F trans$arency in ex$laining the commission structure F the timing of any re2ate $ayment to the in estors4 5hose trust 5ill 2uild a long(term relationshi$9
3ousali Institute of Management Studies4 "har5ad A@
T"e AMFI C# e #0 Et"ics One of the o26ects of the %ssociation of Mutual #unds in India <%M#I= is to $romote the in estors; interest 2y defining and maintaining high ethical and $rofessional standards in the mutual fund industry9 In $ursuance of this o26ecti e4 %M#I had constituted a Committee under the Chairmanshi$ of Shri %9 .9 .radhan 5ith Shri S9 /9 Doshi4 Shri C9 19 .arekh and Shri M9 -axman 3umar as mem2ers9 'his Committee4 5orking in close co(o$eration 5ith .rice CaterhouseH--. under the #IRE .ro6ect of &S%I"4 has drafted the Code4 5hich has 2een a$$ro ed and recommended 2y the Board of %M#I for im$lementation 2y its mem2ers9 I take o$$ortunity to thank all of them for their efforts9 'he %M#I Code of Ethics4 7'he %CE8 for short4 sets out the standards of good $ractices to 2e follo5ed 2y the %sset Management Com$anies in their o$erations and in their dealings 5ith in estors4 intermediaries and the $u2lic9 SEBI <Mutual #unds= Regulation +,,) re0uires all %sset Management Com$anies and 'rustees to a2ide 2y the Code of conduct as s$ecified in the #ifth Schedule to the Regulation9 'he %M#I Code has 2een dra5n u$ to su$$lement that schedule4 to encourage standards higher than those $rescri2ed 2y the Regulations for the 2enefit of in estors in the mutual fund industry9 'his is the first edition of the Code and it may 2e su$$lemented further as may 2e necessary9 I ho$e mem2ers of %M#I 5ould im$lement the code and ensure that their em$loyees are made fully a5are of the Code9
3ousali Institute of Management Studies4 "har5ad AA
;/C
INTEGRITY
+9+
Mem2ers and their key $ersonnel4 in the conduct of their 2usiness shall o2ser e high standards of integrity and fairness in all dealings 5ith in estors4 issuers4 market intermediaries4 other mem2ers and regulatory and other go ernment authorities
+9@
Mutual #und Schemes shall 2e organi>ed4 o$erated4 managed and their $ortfolios of securities selected4 in the interest of all classes of unit holders and not in the interest of S$onsors "irectors of Mem2ers Mem2ers of Board of 'rustees or directors of the 'rustee com$any Brokers and other market intermediaries %ssociates of the Mem2ers % s$ecial class selected from out of unit holders
B/C @9+
D(e Di$i%ence Mem2ers in the conduct of there %sset Management 2usiness shall at all time9 Render high standards of ser ice9 Exercise due diligence9 Exercise inde$endent $rofessional 6udgment9
@9@
Mem2ers shall ha e and em$loy effecti ely ade0uate resources and $rocedures4 5hich are needed for the conduct of %sset Management acti ities9
3ousali Institute of Management Studies4 "har5ad A*
A/C A9+
Disc$#s(!es Mem2ers shall ensure timely dissemination to all unit holders of ade0uate4 accurate4 and ex$licit information $resented in a sim$le language a2out the in estment o26ecti es4 in estment $olicies4 financial $osition and general affairs of the scheme9
A9@
Mem2ers shall disclose to unit holders in estment $attern4 $ortfolio details4 ratios of ex$enses to net assets and total income and $ortfolio turno er 5here er a$$lica2le in res$ect of schemes on annual 2asis9
A9A
Mem2ers shall in res$ect of transactions of $urchase and sale of securities entered into 5ith any of their associates or any significant unit holder9 Su2mit to the Board of 'rustees details of such transactions4 6ustifying its fairness to the scheme9 "isclose to the unit holders details of the transaction in 2rief through annual and half yearly re$orts9
A9*
%ll transactions of $urchase and sale of securities 2y key $ersonnel 5ho are directly in ol ed in in estment o$erations shall 2e disclosed to the com$liance officer of the mem2er at least on half yearly 2asis and su2se0uently re$orted to the Board of 'rustees if found ha ing conflict of interest 5ith the transactions of the fund9
>/C *9+ *9@
P!#0essi#na$ Se$$in% P!actices Mem2ers shall not use any unethical means to sell4 market or induce any in estor to 2uy their $roducts and schemes Mem2ers shall not make any exaggerated statement regarding $erformance of any $roduct or scheme9
3ousali Institute of Management Studies4 "har5ad AE
*9A
Mem2ers shall endea or to ensure that at all times In estors are $ro ided 5ith true and ade0uate information 5ithout any misleading or exaggerated claims to in estors a2out their ca$a2ility to render certain ser ices or their achie ements in regard to ser ices rendered to other clients4 In estors are made a5are of attendant risks in mem2ers; schemes 2efore the in estors make any in estment decision4 Co$ies of $ros$ectus4 memoranda and related literature is made a aila2le to in estors on re0uest4 %de0uate ste$s are taken for fair allotment of mutual fund units and refund of a$$lication moneys 5ithout delay and 5ithin the $rescri2ed time limits and4 Com$laints from in estors are fairly and ex$editiously dealt 5ith9
*9*
Mem2ers in all their communications to in estors and selling agents shall Not $resent a mutual fund scheme as if it 5ere a ne5 share issue Not create unrealistic ex$ectations Not guarantee returns exce$t as stated in the Offer "ocument of the scheme a$$ro ed 2y SEBI4 and in such case4 the Mem2ers shall ensure that ade0uate resources 5ill 2e made a aila2le and maintained to meet the guaranteed returns9 Con ey in clear terms the market risk and the in estment risks of any scheme 2eing offered 2y the Mem2ers9 Not induce in estors 2y offering 2enefits4 5hich are extraneous to the scheme9 Not misre$resent either 2y stating information in a manner calculated to mislead or 2y omitting to state information 5hich is material to making an informed in estment decision9
3ousali Institute of Management Studies4 "har5ad A)
D/C E9+
Invest)ent P!actice Mem2ers shall manage all the schemes in accordance 5ith the fundamental in estment o26ecti es and in estment $olicies stated in the offer documents and take in estment decisions solely in the interest of the unit holders9
E9@
Mem2ers shall not kno5ingly 2uy or sell securities for any of their schemes from or to %ny director4 officer4 or em$loyee of the mem2er %ny trustee or any director4 officer4 or em$loyee of the 'rustee Com$any
=/C )9+
O*e!ati#ns Mem2ers shall a oid conflicts of interest in managing the affairs of the schemes and shall kee$ the interest of all unit holders $aramount in all matters relating to the scheme9
)9@
Mem2ers or any of their directors4 officers or em$loyees shall not indulge in front running <2uying or selling of any securities ahead of transaction of the fund4 5ith access to information regarding the transaction 5hich is not $u2lic and 5hich is material to making an in estment decision4 so as to deri e unfair ad antage=9
)9A
Mem2ers or any of their directors4 officers or em$loyees shall not indulge in self( dealing <using their $osition to engage in transactions 5ith the fund 2y 5hich they 2enefit unfairly at the ex$ense of the fund and the unit holders=9
)9*
Mem2ers shall not engage in any act4 $ractice or course of 2usiness in connection 5ith the $urchase or sale4 directly or indirectly4 of any security held or to 2e ac0uired 2y any scheme managed 2y the mem2ers4 and in $urchase4 sale and
3ousali Institute of Management Studies4 "har5ad AJ
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED redem$tion of units of schemes managed 2y the mem2ers4 5hich is fraudulent4 dece$ti e or mani$ulati e9
)9E
Mem2ers shall not4 in res$ect of any securities4 2e $arty to( Creating a false market4 .rice rigging or mani$ulation .assing of $rice sensiti e information to 2rokers4 Mem2ers of stock exchanges and other $layers in the ca$ital markets or take action4 5hich is unethical or unfair to in estors9
)9)
Em$loyees4 officers and directors of the Mem2ers shall not 5ork as agentsM 2rokers for selling of the schemes of the Mem2ers4 exce$t in their ca$acity as em$loyees of the Mem2er or the 'rustee Com$any9
)9J
Mem2ers shall not make any change in the fundamental attri2utes of a scheme4 5ithout the $rior a$$ro al of unit holders exce$t 5hen such change is conse0uent on changes in the regulations9
)9K
Mem2ers shall a oid excessi e concentration of 2usiness 5ith any 2roking firm4 and excessi e holding of units in a scheme 2y fe5 $ersons or entities9
@/C J9+
Re*#!tin% P!actices Mem2ers shall follo5 com$ara2le and standardi>ed aluation $olicies in 5ith the SEBI Mutual #und Regulations9
J9@ %ccordance Mem2ers shall follo5 uniform $erformance re$orting on the 2asis of total return9 J9A Mem2ers shall ensure scheme 5ise segregation of cash and securities accounts9
3ousali Institute of Management Studies4 "har5ad AK
?/C
Un0ai! C#)*etiti#n Mem2ers shall not make any statement or 2ecome $ri y to any act4 $ractice or com$etition4 5hich is likely to 2e harmful to the interests of other Mem2ers or is likely to $lace other9 Mem2ers in a disad antageous $osition in relation to a market $layer or in estors4 5hile com$eting for in esti2le funds9
</ O
Obse!vance #0 Stat(tesE R($es an Re%($ati#ns Mem2ers shall a2ide 2y the letter and s$irit of the $ro isions of the Statutes4 rules and regulations4 5hich may 2e a$$lica2le4 and rele ant to the acti ities carried on 2y the mem2ers9
;C/C
En0#!ce)ent Me)be!s s"a$$
Cidely disseminate the %M#I Code to all $ersons and entities co ered 2y it Make o2ser ance of the Code a condition of em$loyment Make iolation of the $ro isions of the code4 a ground for re ocation of contractual arrangement 5ithout redress and a cause for disci$linary action Re0uire that each officer and em$loyee of the Mem2er sign a statement that heMshe has recei ed and read a co$y of the Code Esta2lish internal controls and com$liance mechanisms4 including assigning su$er isory res$onsi2ility "esignate one $erson 5ith $rimary res$onsi2ility for exercising com$liance 5ith $o5er to fully in estigate all $ossi2le iolations and re$ort to com$etent authority
3ousali Institute of Management Studies4 "har5ad A,
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED #ile regular re$orts to the 'rustees on a half yearly and annual 2asis regarding o2ser ance of the Code and s$ecial re$orts as circumstances re0uire Maintain records of all acti ities and transactions for at least three years4 5hich records shall 2e su26ect to re ie5 2y the 'rustees "edicate ade0uate resources to carrying out the $ro isions of the Code
St!(ct(!e #0 M(t(a$ F(n s in In ia -ike other countries4 India has a legal frame5ork 5ithin 5hich mutual funds 2e constituted9 &nlike in the &34 5here t5o distinct :trust; and :cor$orate; structures are follo5ed 5ith se$arate regulations4 in India o$en(end and closed end funds o$erate under the same regulatory structure and are constituted along one uni0ue structure H as unit trusts9 % mutual fund in India is allo5ed to issue o$en(end and closed(end schemes under a common legal structure9 'herefore4 a mutual fund may ha e se eral different schemes <o$en(end and closed(end= under it9 'hat is under one unit trust4 at any $oint of time9 'he structure is re0uired to 2e follo5ed 2y mutual funds in India is laid do5n under SEBI <mutual fund= regulations4 +,,)9 In the follo5ing $aragra$hs4 5e look at the structure of each of the fund constituent
3ousali Institute of Management Studies4 "har5ad *?
SEBI TRUSTEE OPERATIONS AMC SPONSOR
FUND MANAGER
MARFET : SALES
MUTUAL FUND SC1EMES INVESTOR
3ousali Institute of Management Studies4 "har5ad *+
S*#ns#!
Chat a $romoter is to a com$any4 a s$onsor is to a mutual fund9 'he s$onsor initiates the idea to set u$ a mutual fund9 It could 2e a financial ser ices com$any4 a 2ank or a financial institution9 It could 2e Indian of foreign9 It could do it alone or through a 6oint enture9 In order to run a mutual fund in India4 the s$onsor has to o2tain a license from SEBI9 #or this4 it has to satisfy certain conditions4 such as a ca$ital and $rofits4 2ack records <at least fi e years in financial ser ices=4 default free dealings and a general re$utation for fairness9
Asset Mana%e)ent C#)*an& 5AMC6 %n %MC is the legal entity formed 2y the s$onsor to run a mutual fund9 It;s the %MC that em$loys fund managers and analyst4 and other $ersonnel9 It;s the %MC that handles all o$erational matters of a mutual fund H from launching schemes to managing them to interacting 5ith in estors9 'he $eo$le in the %MC 5ho should matter the most to you are those 5ho take in estment decisions9 'here is the head of the fund house4 generally referred to as the chief executi e officer <CEO=9 &nder him comes the chief in estment officer <CIO=4 5ho sha$es the funds in estment $hiloso$hy and fund managers 5ho manage its schemes9 % team of analysts4 5ho track markets4 sectors and com$anies4 assists them9
3ousali Institute of Management Studies4 "har5ad *@
Trustees
'rustees are like internal regulations in a mutual fund4 and their 6o2 is to $rotect the interests of unit holders9 'rustees are a$$ointed or cor$orate 2odies9 In order to ensure 'hey are im$artial and fair4 SEBI rules mandate that at least t5o thirds of the trustees 2e inde$endent that is4 not ha e any association 5ith the s$onsor9 'rustees a$$oint the %MC4 su2se0uently seeks their a$$ro al for the 5ork it does and re$orts $eriodically to them on ho5 the 2usiness is 2eing run9 'rustees float and market schemes and secure necessary a$$ro als9 'hey check if the %MC in estments are 5ithin defined limits and 5hether the funds accounta2le for financial irregularities in the mutual fund9
C(st# ian % custodian handles the in estment 2ack office of a mutual fund9 Its res$onsi2ilities include recei$t and deli ery of securities4 collection of income4 and distri2ution of di idends and segregation of assets 2et5een schemes9 'he s$onsor of a mutual fund cannot act as a custodian to the fund9 'his condition4 formulated in the interest of in estors4 ensures that the assets of a mutual fund are not in the hands of its s$onsor9 #or exam$le "eutsche Bank is a custodian 2ut it cannot ser ice "eutsche Mutual #und4 its mutual fund arm9 Re%ist!a! Registrars also kno5n as transfer agents4 handles all in estor related ser ices9 'his includes issuing and red reaming units9 Sending fact sheet and annual re$orts9 Some fund houses handle such functions in house9 Others outsource it to registrarsG 3ar y and C%MS are the more $o$ular ones9 It doesn;t really matter 5hich model your mutual fund
3ousali Institute of Management Studies4 "har5ad *A
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED o$ts for4 as long as it is $rom$t and efficient in ser icing you9 Most mutual funds in addition to registrars also ha e in estor ser ice centers of their o5n in some cities9
Recent T!en s in M(t(a$ F(n In (st!&

'he most im$ortant trend in the mutual fund industry is the aggressi e ex$ansion of the #oreign o5ned mutual fund com$anies and the decline of the com$anies floated 2y Nationali>ed Banks and smaller .ri ate Sector $layers9 Many Nationali>ed 2anks got into the mutual fund 2usiness in the early nineties and got off to a good start due to the stock market 2oom $re ailing then9 'hese 2anks did not really understand the mutual fund 2usiness and they 6ust ie5ed it as another kind of 2anking acti ity9 #e5 hired s$eciali>ed staff and generally chose to transfer staff from the $arent organi>ation9 'he $erformance of the schemes floated 2y these funds 5as not good9
Some schemes offered guaranteed returns and their $arent organi>ation had to 2ail out these %MCs 2y $aying large amounts of money as the difference 2et5een the guaranteed and actual returns9 'he ser ice le els 5ere also ery 2ad9 Most of these %MCs ha e not 2een a2le to retain staff4 float ne5 schemes etc9 and it is dou2tful 5hether4 2arring a fe5 exce$tions they ha e serious $lans of continuing the acti ity in a ma6or 5ay9 'he ex$erience of some of the %MCs floated 2y $ri ate sector Indian com$anies 5as also ery similar9 'hey 0uickly reali>ed that the %MC 2usiness4 5hich makes money
3ousali Institute of Management Studies4 "har5ad **
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED in the long term and re0uires dee$($ocketed su$$ort in the intermediate years9 Some ha e sold out to #oreign o5ned com$anies4 some ha e merged 5ith others and there is general restructuring going on9
'he #oreign o5ned com$anies ha e dee$ $ockets and come in here 5ith the ex$ectation of a long haul9 'hey can 2e credited 5ith introducing many ne5 $ractices such as ne5 $roduct inno ation4 shar$ im$ro ement in ser ice standards and disclosure4 usage of technology4 2roker education and su$$ort etc9 In fact they ha e forced the industry to &$grade it and ser ice le els of organi>ations like &'I ha e im$ro ed dramatically in the last fe5 years in res$onse to the com$etition $ro ided 2y these com$anies9 F(t(!e Scena!i# 'he asset 2ase 5ill continue to gro5 at an annual rate of a2out A? to AEQ o er the next fe5 years as in estors shift their assets from 2anks and other traditional a enues9 Some of the older and $ri ate sector $layers 5ill either close sho$ or 2e taken o er9 In the coming years the market 5ill 5itness a flurry of ne5 $layers entering the arena9 'here 5ill 2e a large num2er of offers from arious %MCs in the time to come9 Some 2ig names like #idelity4 .rinci$al4 and Old Mutual etc9 are looking at Indian market seriously9 One im$ortant reason for it is that most ma6or $layers already ha e $resence here and hence these 2ig names 5ould hardly like to get left 2ehind9 'he mutual fund industry is a5aiting the introduction of
3ousali Institute of Management Studies4 "har5ad *E
"eri ati es in India as this 5ould ena2le it to hedge its risk and this in turn 5ould 2e reflected in its N%/9 SEBI is 5orking out the norms for ena2ling the existing mutual fund schemes to trade in deri ati es9 Im$ortantly4 many market $layers ha e called on the regulator to initiate the $rocess immediately4 so that the mutual funds can im$lement the changes that are re0uired to trade deri ati es9
G$#ba$ Scena!i#
Some 2asic facts

'he money market mutual fund segment has a total cor$us of R +9*K trillion in the &9S9 against a cor$us of R +?? million in India9 Out of the to$ +? mutual funds 5orld5ide4 eight are 2ank( s$onsored9 Only #idelity and Ca$ital are non(2ank mutual funds in this grou$9 In the &9S9 the total num2er of schemes is higher than that of the listed com$anies 5hile in India 5e ha e 6ust @JJ schemes Internationally4 mutual funds are allo5ed to go short9 In India fund managers do not ha e such lee5ay9 In the &9S9 a2out ,9J million households 5ill manage their assets on(line 2y the year @??A4 such a facility is not yet of a ail in India9 On( line trading is a great idea to reduce management ex$enses from the current @ Q of total assets to a2out ?9JE Q of the total assets9
3ousali Institute of Management Studies4 "har5ad *)
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED KEQ of the core customer 2ases of mutual funds in the to$ E?(2roking firms in the &9S9 are ex$ected to trade on(line 2y @??A9 Internationally4 on( line in esting continues its meteoric rise9 Many ha e de2ated a2out the success of e( commerce and its 2reakthroughs4 2ut it is true that this as$ect of technology could and 5ill change the 5ay financial sectors function9 !o5e er4 mutual funds cannot 2e left far 2ehind9 'hey ha e reali>ed the $otential of the Internet and are e0ui$$ing themsel es to $erform 2etter9
In fact in ad anced countries like the &9S9%4 mutual funds 2uy( sell transactions ha e already 2egun on the Net4 5hile in India the Net is used as a source of Information. Such changes could facilitate easy access4 lo5er intermediation costs and 2etter ser ices for all9 % research agency that s$eciali>es in Internet technology estimates that o er the next four years Mutual #und %ssets traded on( line 5ill gro5 ten folds from R +@K 2illion to R +4@@J 2illionG 5hereas e0uity assets traded on(line 5ill increase during the $eriod from R @*) 2illion to R +4E)+ 2illion9 'his 5ill increase the share of mutual funds from A*Q to *?Q during the $eriod9 Such increases in olumes are ex$ected to 2ring a2out large changes in the 5ay Mutual #unds conduct their 2usiness9
!ere are some of the 2asic changes that ha e taken $lace since the ad ent of the Net9 L#.e! C#sts "istri2ution of funds 5ill fall in the online trading regime 2y @??A9 Mutual funds could 2ring do5n their administrati e costs to ?9JEQ if trading is done on( line9 %s $er SEBI regulations4 2ond funds can charge a maximum of @9@EQ and e0uity funds can charge @9EQ as administrati e fees9 'herefore if the administrati e costs are lo54 the 2enefits are $assed do5n and hence Mutual #unds are a2le to attract mire in estors and increase their asset 2ase9
3ousali Institute of Management Studies4 "har5ad *J
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED Bette! a vice

Mutual funds could $ro ide 2etter ad ice to their in estors through the Net rather than through the traditional in estment routes 5here there is an additional channel to deal 5ith the Brokers9 "irect dealing 5ith the fund could hel$ the in estor 5ith their financial $lanning / In
India4 2rokers could get more Net sa y than in estors and could hel$ the in estors 5ith the kno5ledge through get from the Net9
Ne. invest#!s .#($ *!e0e! #n$ine Mutual funds can target in estors 5ho are young indi iduals and 5ho are Net sa y4 since ser icing them 5ould 2e easier on the Net9 India has around +9) million net users 5ho are $rime target for these funds and this could 6ust 2e the 2eginning9 'he Internet users are going to increase dramatically and mutual funds are going to 2e the 2est 2eneficiary9 Cith smaller administrati e costs more funds 5ould 2e mo2ili>ed 9% fund manager must 2e ready to tackle the olatility and 5ill ha e to maintain sufficient amount of in estments 5hich are high li0uidity and lo5 yielding in estments to honor redem$tion9 Net+base a ve!tise)ents 'here 5ill 2e more sites in ol ed in ads and $romotion of mutual funds9 In the &9S9 sites like %O- offer detailed research and financial details a2out the functioning of different funds and their $erformance statistics9 a is 5itnessing a genesis in this area9 'here are many sites such as indiainfoline.com and indiafn9com that are doing something similar and $ro iding ad ice to in estors regarding their in estments9 In the &9S9 most mutual funds concentrate only on financial funds like e0uity and de2t9 Some like real estate funds and commodity funds also take an ex$osure to $hysical assets9 'he latter ty$e of funds are $referred 2y cor$orate 5ho 5ant to hedge their ex$osure to the commodities they deal 5ith9
3ousali Institute of Management Studies4 "har5ad *K
#or instance4 a ca2le manufacturer 5ho needs +?? tons of Co$$er in the month of Danuary could 2uy an e0ui alent amount of co$$er 2y in esting in a co$$er fund9 #or Exam$le4 .ermanent .ortfolio #und4 a conser ati e &9S9 2ased fund in ests a fixed $ercentage of it;s cor$us in 1old4 Sil er4 S5iss francs4 s$ecific stocks on arious 2ourses around the 5orld4 short Hterm and long(term &9S9 treasuries etc9
In &9S9%9 a$art from 2ullion funds there are co$$er funds4 $recious metal funds and real estate funds <in esting in real estate and other related assets as 5ell9=9 In India4 the Canada 2ased "undee mutual fund is $lanning to launch a gold and a real estate fund 2efore the year(end9 In de elo$ed countries like the &9S9% there are funds to satisfy e ery2ody;s re0uirement4 2ut in India only the ti$ of the ice2erg has 2een ex$lored9 In the near future India too 5ill concentrate on financial as 5ell as $hysical funds9
C#!*(s'+ In esting in a scheme is a sim$le $rocess9 Duts 5alk into any office of the mutual fund or that of its re$resentati es9 #ill u$ a short and sim$le form4 and hand o er a che0ue9 Iours money gets added to the $ool already 5ith the scheme4 gi en to it 2y numerous other in estors like you9 'he total money a aila2le 5ith a scheme at any $oint in time is referred to as the 7Cor$us8 or %sset under management ;the mutual fund4 on your and other in estors 2ehalf in ests this cor$us in arious securities in line 5ith its sated o26ecti es Units'
3ousali Institute of Management Studies4 "har5ad *,
Mutual fund issues you :units; against your in estment9 % unit is the currency of a fund9 Chat a share is to com$any4 a unit is to a fund9
Net asset va$(e <N%/=: NAV: <Net asset of the scheme Mnum2er of unit;s oMs= <Num2er of units outstanding as at the N%/= Iou are allotted units on the 2asis of a scientific mechanism9 'his $rice4 measured $er unit4 is called the Net %sset /alue <N%N= of the unit9 Dust as share or land is 2ought and sold at its N%/9 if for exam$le4 you 5ere to in est Rs +???? in scheme 5hen it;s N%/ Is Rs +?9 Iou 5ill 2e allotted +??? units <+????M+?= roughly H the fund charges a nominal $rocessing fee9 'he N%/ of any scheme tells ho5 much each units of its is 5orth at any $oint in time4 and is therefore the sim$lest measure of ho5 it is $erforming9 Schemes N%/ is its net assets <Market alue of the securities its o5n minus it o5es= di ided 2y the num2er of units it has issued9
% scheme N%/ is dynamic figure9 'he market alue of a schemes $ortfolio4 changes from day to day4 as $rices of shares and 2onds mo e u$ or do5n9 'he num2er of units outstanding also changes as ne5 in estors come into the scheme and told ones
3ousali Institute of Management Studies4 "har5ad E?
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED lea e9 If the N%/ of your scheme rises from Rs +? to Rs4 ++ o er a $eriod of time4 your scheme is said to ha e generated a return of +?Q9 Similarly4 if its N%/ falls from Rs +? to Rs ,4 it is said to ha e lost +?Q #und house ha e to calculate and disclose the N%/;s of their schemes daily fund N%/;s can 2e easily looked u$9 Chile dailies gi e a random listing of schemes the financial $a$ers are more exhausti e in their co erage9N%/ information is also a aila2le on 5e2site4 of the mutual fund concerned and of inde$endent data $ro iders9 Chen in ested in a scheme4 its N%/ is the figure to track as it 0ualifies your returns and your $urchase $rice and sale $rice 5ill 2e 2ased on it9
L#a '+
%lthough the N%/ re$resents scheme current market alue it is not the exact $rice at 5hich an in estor enters or exits the scheme9 #und houses le y a nominal charge4 on most of their schemes4 to meet their $rocessing costs and to discourage in estors from lacking9 'his charge is referred to as :load; and it is $rice you $ay o er and a2o e the fund N%/ 5hen you 2uy or cell units9 Iou $ay an :entry load; at the time 2uying units and an :exit load; 5hile selling9 -oads are al5ays ex$ressed as $ercentage of the N%/4 and ha e the effect of reducing your returns9 %n entry load increases your N%/4 5hich $laces fe5er units in your hands9 %n exit load decrease you;re N%/ of Rs +? and it le ies an entry and exit load of +Q <+? $aisa= each9 So 5hen you 2uy units you;ll $ay Rs +?9+ <+?O?9+?=$er unit4 not Rs +?9 Similarly if you sell you;ll get Rs ,9,?<+?(?9+?= $er unit4 not Rs +?9 &nder SEBI rules4 the sum of entry and exit loads charged 2y a scheme cannot exceed JQ
C#st #0 invest)ent in )(t(a$ 0(n '+

%nother entry that eats into your return is :ex$enses; this is 5hat your fund charges you for managing your only9 #und managers ha e to 2e $aid a fee4 as do the
3ousali Institute of Management Studies4 "har5ad E+
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED other constraints in ol ed in managing your money9 %ll this entails costs4 5hich your scheme reco ers from you4 5ithin limits9 E ery year4 a fund charges same amount to your schemes N%/ reducing your returns 2y that amount9 SEBI rules allo5 e0uity schemes to charge a maximum of @9EQof cor$us as ex$enses e ery year4 the corres$onding figure for de2t schemes is @9@EQ SEBI also decides 5hat kind of ex$enses a fund can charge its unit holders and 5hat it cannot9 #or e9g9: the cost of running a cam$aign a2out a fund ha ing 5on an a5ard cannot 2e charged to in estors9
Disc$#s(!es'+
#rom time to time4 your fund house 5ill share 5ith you information relating to your scheme9 It does this in arious 5ays4 in arious degrees9 &nder SEBI rules4 fund houses ha e to send to all unit holder;s annual re$orts disclosing the com$lete $ortfolio of all units holders; annul re$orts disclosing the com$lete $ortfolio of all units holders; annul re$orts disclosing the com$ete $ortfolio of all their schemes and $u2lish half(yearly results in ne5s$a$ers9 'hese document shade light on your schemes $erforming o er arious time $eriods4 and ho5 it stands u$4 gi en market conditions9 Some fund house goes 2eyond such mandatory information sharing9 Chate er information is rele ant to your in estment they send it to you on a 0uarterly 2asis 4 through fax and ne5sletters9 Most fund houses u$date their scheme $ortfolio on their 5e2site e en 0uicker4 the norm 2eing on a monthly 2asis9 'his information you can use to make an in estment in the schemes
Re e)*ti#n'+
Chene er you 5ant4 you can sell your units4 $artly or fully 2ack to your fund9 %lthough it;s sale from your $oint of ie5 in mutual fund $arlance it is called :
3ousali Institute of Management Studies4 "har5ad E@
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED re$urchase :or redem$tion; you;ll ha e to fill u$ another short and sim$le from your Mutual fund 5ill $ay you the schemes N%/ $re ailing on that date minus the exit load4 Mail you a che0ue 5ithin three to fi e days9
DISTRIBUTION COMPANIES9
% distri2ution com$any has se eral agents and distri2utors 5orking for it4 and is the transitional interface 5ith the mutual fund9 It is institutional agent for a mutual fund4 and earns commissions on funds mo2ili>ed9 "istri2ution com$anies are a ery $o$ular channel 5ith mutual fund today9
C#)*an& P!#0i$e
Int!# (cti#n'+
VISION: To be the most trusted name in investment and wealth management, to be the preferred employer in the industry and to be a catalyst for growth and excellence of the asset management business in India.
MISSION: To consistently pursue investor's wealth optimization by: Achieving superior and consistent investment results Creating a conducive environment to hone and retain talent Providing customer delight
3ousali Institute of Management Studies4 "har5ad EA
Institutionalizing system-approach in all aspects of functioning Upholding highest standards of ethical values at all times
Biral Sun -ife #inancial Ser ices offers a range of financial ser ices for resident Indians and Non Residents Indians9Birla Sun -ife "istri2ution Co9 -td9 a $art of the Doint
/enture 2et5een 'he %ditya Biral 1rou$ and Sun -ife #inancial of Canada9 'he synergy of these t5o accom$lished conglomerates 2rings the glo2al financial kno5(ho5 and local market insight9 It is the aim of the com$any to offer di erse and to$ 0uality financial ser ices to customers9 'he Mutual #und and Insurance com$anies $ro ide 5ealth management and $rotection $roducts to customers 5hile the "istri2ution and Securities com$anies $ro ide 2rokerage and trading ser ices for in estment in e0uities4 de2t securities4 fixed de$osits4 etc9 It is said that: N'o ac0uire 5ealth is difficult4 to $reser e it more difficult4 2ut to nourish it 5isely4 the most difficult of all9N 'he com$any;s commitment to excellence along 5ith a roots u$ a$$roach to research and analysis4 cou$led 5ith technology dri en $rocesses has ena2led them to excel at this challenging task and in a s$an of four years emerge as one of the leading distri2ution houses of the country9
N no!ledge is a treasure "ut practice is t#e $ey to it%
3ousali Institute of Management Studies4 "har5ad E*
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED 'he com$any 2elie es that the desire for kno5ledge increases 5ith the ac0uisition of it9 %t Birla Sun -ife "istri2ution they make the 2est use of intellect and ex$ertise $utting kno5ledge to good $ractice9 %s and 5hen and 5here in estors need it9 #or com$any the conce$t of $erfect ser ice is contently ex$anding9 'his along 5ith trans$arent 2usiness ethics4 ins$ired and inno ati e solutions is 5hat their in estors ha e come to ex$ect from them9 % fact4 5hich has 2een reaffirmed 2y recognition and a5ards4 conferred on them 2y the leading names of the India #inancial Ser ices Industry9
STRUCTURE OF FINANCIAL SERVICES

Bi!$a S(n Li0e Financia$ Se!vices
Birla Sun -ife Mutual #und
Birla Sun -ife Insurance
Birla Sun -ife "istri2ution
Birla Sun Life Asset Management Company Limited :

Biral Sun -ife Mutual #und follo5s a conser ati e long(term a$$roach to in estment4 5hich is 2ased on identifying com$anies that ha e good credit(5orthiness and are fundamentally strong9 It $laces a lot of em$hasis on 0uality of management and risk control9 'his is done through extensi e analysis that includes factory isits and field research9 It has one of the largest team of research analysts in the industry9 'he com$any
3ousali Institute of Management Studies4 "har5ad EE
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED is one of IndiaLs leading4 $ri ate mutual funds 5ith a large customer 2ase9 It has 2een recogni>ed nationally 5ith co eted a5ards9
Bi!a$ S(n Li0e Ins(!ance C#)*an& Li)ite '

Insurance is not a2out something going 5rong9 ItLs often a2out things going right9 One of the 5onders of human nature is that 5e ne er 2elie e anything can actually go 5rong9 Surely4 life has its share of ifs9 %t Biral Sun -ife ho5e er4 com$any 2elie e it has its e0ually $leasant share of 2uts as 5ell9 Biral Sun -ife stand committed to hel$ing $eo$le reali>e those ha$$y moments 5hich make a life9 Be it li ing the same lifestyle in their $ost retirement days or $ro iding a secure future for their lo ed ones4 in case something ha$$ens to them9
Bi!$a S(n Li0e Dist!ib(ti#n C#)*an& Li)ite '
VISION: To be the first performance of our customers as a integrated provider of complete financial services through superior value creation and technology.
%t Birla Sun -ife "istri2ution4 they $ut kno5ledge4 ex$ertise and ex$erience to good use to $reser e4 nurture and nourish your 5ealth9 #or customers today and tomorro59 They are a part of the Joint ent!re "et#een The $%itya &ir'a (ro!p an% )!n *ife +inan,ia' of Cana%a. The syner-y of these t#o a,,o.p'ishe% ,on-'o.erates "rin-s in/estors -'o"a' finan,ia' 0no#-ho# an% 'o,a' .ar0et insi-ht.
3ousali Institute of Management Studies4 "har5ad E)
It is sai% that1 "To acquire wealth is difficult, to preserve it more diffcult, but to nourish it wisel , the most difficult of all."
Their ,o..it.ent to e2,e''en,e a'on- #ith a roots !p approa,h to resear,h an% ana'ysis3 ,o!p'e% #ith te,hno'o-y %ri/en pro,esses has ena"'e% !s to e2,e' at this ,ha''en-in- tas0 an% in a span of fo!r years e.er-e as one of the 'ea%in%istri"!tion ho!ses of the ,o!ntry.
Fe& St!en%t"s' Research 2ased ad ice from the s$ecial research team9 -iterature for the u$date of kno5ledge4 this is the uni0ue feature of com$any 5here no other com$any $ro ides literature9 .ro ides the fund u$dates on the 5eekly and monthly 2asis9 'he com$any has 2ecome one of the 2iggest distri2ution com$anies in the shortest $eriod of time i9e9 ) years9 Country 5ide net 5ork9
.ro ide 5ide range of ser ices9
Dist!ib(ti#n Ac"ieve)ent #0 Bi!a$ s(n $i0e C#/Lt '+

-eading "istri2ution !ouse in the country O er +4E?4??? customer country5ide E??? $lus 2usiness associations
3ousali Institute of Management Studies4 "har5ad EJ
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED Business across all im$ortant segments : industrial4 $ri ate client 1rou$4 Retail and channel .artners9 National $resence in +A cities9 -eading cor$orate agent of Biral Sun -ife Insurance9
S(n Li0e Financia$ Se!vices'+

Sunlife financial ser ices of Canada Inc9is the ne5 holding Co4 for sunlife assurance Co9 of Canada9 Sunlife financial is the ne5 2rand of select grou$ of com$anies $ro iding indi iduals and cor$orations 5ith a di ersified range of $roducts and ser ice meeting their needs for 5ealth management as 5ell as $rotection9 %s glo2al enter$rise the sunlife financial grou$ of com$anies o$erates in key markets around the 5orld ma6or o$erating acti ities are handled 2y national office in Canada9 'he united sates4 the &nited 3ingdom the .hil $ines and !ong 3ong9
Ana$&sis Aven(es #0 Invest)ent
Invest)ents Bank de$osits Mutual fund<E0uity= Mutual fund<"e2t= Insurance 1old Real Estate Stocks
&espondents *E +? E E @? +? E
3ousali Institute of Management Studies4 "har5ad EK
!venue of "nvestments &an0 %eposits

M!t!a' f!n%567!ity8 M!t!a' f!n%59e"t8 104 204 54 54 104 Rea' 6state )to,0s 54 454 Ins!ran,e (o'%
#rom the a2o e gra$h and ta2le it is clear that around *EQ of the 2usiness $eo$le in est in 2ank de$osits 5hich are com$arati ely grater than other a enues of in estment9 %round +EQ of 2usiness $eo$le in est in Mutual fund of 2oth E0uity and "e2t fund4 EQ 2usiness $eo$le in Insurance4 @?Q in 1old4 +?Q in Real estate and EQ in Stock
P(!*#se #0 Invest)ent
Invest)ents Retirement .lan Children Education Buying a !ouseM.ro$erty Marriage Others &espondents *E @? +? @? )
3ousali Institute of Management Studies4 "har5ad E,
#urpose of "nvestment
$o. of %usiness #eople 50 40 30 20 10 0
.
45
20 10
20 6
Respon%ents
'% re n
Re tir e
&! yin
Ch i
#urpose
#rom the a2o e gra$h and ta2le it can 2e stated that *EQ of 2usiness $eo$le in est for their retirement $lanes4 @?Q for children education4 +?Q for 2uying a houseM$ro$erty4 @?Q for children marriage and )Q 2usiness $eo$le for other reasons
Ave!a%e M#nt"$& Inc#)e
M#nt"$& Inc#)e5Rs6 &espondents &$to(@?4??? @E @?4??? to E?4??? AE E?4??? to +4??4??? @E %2o e H +4??4??? +E
3ousali Institute of Management Studies4 "har5ad )?
ar r ia -e ; th er s
6% n
o! se
en t
Monthl "ncom e of %usiness #eople $o. of %us. #eople 40 30 20 10 0 <pto-203000 503000 to 13003000 203000 to 503000 $"o/e = 13003000 25 35 25 15
'he a erage monthly income of @EQ2usiness $eo$le is u$ to @?4??? and 2et5een @?4??? to E?4??? of AEQ2usiness $eo$le and @EQ2usniess $eo$le earn a monthly income of 2et5een E?4??? to +4??4??? and +EQ of the 2usiness $eo$le earn more than +4??4??? a month9
Ave!a%e M#nt"$& Savin%s
M#nt"$& Savin%s5Rs6 &$ to H E4??? E4??? to +?4??? +?4??? to @?4??? %2o e H @?4???
&espondents AJ A? @E K
3ousali Institute of Management Studies4 "har5ad )+
!vera&e Monthl 'avin&s of %us. #eople

$o. of %us #eople 40 30 20 10 0 <pto 5>-10> 10>5> 20> !mount (Rs) $"o/e 20> Respon%ents
#rom the a2o e gra$h and ta2le it is clear that most of the 2usiness $eo$les a erage monthly sa ings are u$ to E4??? and A?Q of the 2usiness $eo$le sa e 2et5een E4??? to +?4???4 @EQ sa e 2et5een +?4??? to @?4??? and KQ of 2usiness $eo$le sa e a2o e @?4??? on an monthly sa ings
Invest)ent 0#! ta, Savin%s
Invest)ents Insurance E-SS ..# NSC Bonds
&espondents *@ J +A @E +?
3ousali Institute of Management Studies4 "har5ad )@
!ousing loan
"nvestments for Ta* 'avin&s
104
64 404
244 134 74
Ins!ran,e
6*))
??+
@)C
&on%s
:o!sin- 'oan
#rom the a2o e ta2le and gra$h it can 2e kno5n that most of the 2usiness $eo$le in est their sa ings in Insurance for tax sa ings *@Q 2usiness $eo$le in est in insurance4 JQ in E-SS4+AQ in ..#4@EQ in NSC4 +?Q in Bonds and )Q 2usiness $eo$le in housing loan for tax sa ings 4 insurance occu$y the ma6or $art of the sa ings9
Ins(!ance an 0a)i$& *!e)i()
Ave!a%e P!e)i() *ai +)EA)
'verage Sum assured *4A?4@??
3ousali Institute of Management Studies4 "har5ad )A
!vera&e premium paid and sum assured

500000 400000 300000 200000 100000 0 $/era-e pre.i!. pai% $.o!nt $/era-e s!. ass!re%
#rom the a2o e gra$h and ta2le it is clear that the a erage sum assured for insurance of the 2usiness $eo$le is *4 A?4@?? and the a erage $remium $aid on the sum assured is +)4EA?
Se!vice e,*ectati#n 0!#) &#(! a vis#!
Se!vice Research 2ased ad ice Monthly fund u$date -iterature to u$date your kno5ledge !andling customer 0ueries
&espondents @E A? @? @E
3ousali Institute of Management Studies4 "har5ad )*
Respon%ents 30 25 20 15 10 5 0 Resear,h a%/i,e Mt'y !p%ate *iterat!re 7!erries Respon%ents
#rom the gra$h and ta2le of ser ice ex$ected 2y the 2usiness $eo$le from their ad isor it is clear that most of the 2usiness $eo$le $refer monthly fund u$date @EQ of 2usiness $eo$le ex$ected Research 2ased ad ice4 A?Q of ex$ects monthly fund u$date4 @?Q ex$ect literature4 and @EQ 2usiness $eo$le ex$ect handling 0uarries
Res*#n ent a.a!eness ab#(t BSDL
A.a!eness ab#(t BSDL %5are No a5are
&espondents @E JE
3ousali Institute of Management Studies4 "har5ad )E
%usiness #eople+s !wareness about %',-
254 $#are @o a#are 754
#rom the a2o e gra$h and ta2le it is clear that @EQ of the 2usiness $eo$le are a5are of BS"- and JEQ of the 2usiness $eo$le are not a5are of BS"-
A.a!eness #0 se!vice *!#vi e b& BSDL
Se!vice Research 2ased ad ice .ortfolio statement -iterature to u$date your kno5ledge
&espondents AE +? A?
3ousali Institute of Management Studies4 "har5ad ))
Monthly fund u$date
@E
!wareness of services #rovided b %',35 30 25 $o. of %us. 20 #eople 15 10 5 0 35 30
25
10
Resear,h ?ortfo'io st. *iterat!re Mt'y !p%ate a%/i,e 'ervices Respon%ents
#rom the a2o e ta2le and gra$h of a5areness of ser ice $ro ided 2y BS"- it is clear that AEQ of 2usiness $eo$le are a5are of research 2ased ad ice4+?Q2usiness $eo$le are a5are of $ortfolio statement $ro ided 2y BS"-4 A?Q2usiness $eo$le are a5are of the literature and @EQ of the 2usiness $eo$le are a5are of monthly fund u$date $ro ided 2y the BS"-
Pa!a)ete!s #0 )(t(a$ 0(n

Se!vices
Safe 1ro5th Redem$tion #ormalities &nderstanding a2out scheme
Ran4;/ Ran4B/ J +@ +) @? @E @+ AK A? +? @?
Ran4A/ *? AJ @, +K *E
Ran4>/ @) +K +E , @?
Ran4D +E , +? E E
3ousali Institute of Management Studies4 "har5ad )J
Ran.in& of #arameters of MF
50 40 $o. of %us #eople 30 20 10 0 )afe (ro#th Re%tion #arameters Ran01. Ran02. Ran03. Ran04. Ran05 +or.a'ities s,he.e
#rom the ta2le and gra$h of $arameter of mutual fund it is clear that JQ of the 2usiness $eo$le ha e ranked the mutual fund as ery safe 4+)Q 2usiness $eo$le raked mutual fund as high gro5th4 @EQ ranked redem$tion easy4 AKQ ranked as formalities are easy and +?Q of the 2usiness $eo$le ranked the $arameters understanding a2out the schemes as ery easy9
Fin in%s'+
On an a erage *EQ of the 2usiness $eo$le in est in 2ank de$osits and ery less num2er of 2usiness $eo$le in est in mutual <2oth e0uity and de2t= funds and stock Business $eo$le main o26ecti e of in estment is their retirement $lan9
3ousali Institute of Management Studies4 "har5ad )K
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED More num2er of 2usiness $eo$le at Bosari MI"C .une are ha ing the income le el of @?4??? to E?4??? On an a erage the 2usiness $eo$le ha ing their sa ings 2et5een E??? to +?4??? Business $eo$le in est in insurance for their tax sa ings Business $eo$le ex$ectations from their ad isors are monthly fund u$date 4 research 2ased ad ice4 literature and handling 0uarries of %Mc statement &$ to JEQ of the Business $eo$le are not a5are of BS" Nearly +MArd of 2usiness $eo$le are a5are a2out the follo5ing ser ice of BS"-9 Research 2ased ad ice4 literature to u$date your kno5ledge4 and monthly fund u$dates $ro ided 2y com$any
Rec#))en ati#ns'+
%s $ercentage of a5areness of BS"- among 2usiness $eo$le is ery less thus the com$any should undertake acti ities to increase the a5areness among the 2usiness $eo$le
3ousali Institute of Management Studies4 "har5ad ),
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED Business $eo$le think in esting in mutual fund is risk and only less $ercentage of 2usiness $eo$le ha e ranked the safety so the com$any should conduct a5areness $rograms9
%s higher $ercentage of 2usiness $eo$le in est in insurance for tax sa ings and only fe5 2usiness $eo$le ha e in estments in E-SS for tax sa ings9 So the com$any should ad ertise more a2o e the tax sa ings schemes9
#rom the sur ey it is clear that there is lack of in estment $lanning among 2usiness $eo$le9 'he BS"- should hel$ and educate the in estors a2out the in estment $lans9
3ousali Institute of Management Studies4 "har5ad J?
ANNEXURES
9(esti#nnai!e
I am student of 4#(sa$i Instit(te #0 )ana%e)ent st( iesE D"a!.a 9 I am Conducting sur ey on 7In estment .attern of Business .eo$le89 In this regard I re0uest you to s$are fe5 minutes to fill u$ this 0uestionnaire9 'he information $ro ided 2y you is ke$t confidential and this information 5ill 2e used only for academic $ur$ose Name : SSSSSSSSSSSSSSSSSSSSSSSS
3ousali Institute of Management Studies4 "har5ad J+
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED %ddress Business : SSSSSSSSSSSSSSSSSSSSSSSS : SSSSSSSSSSSSSSSSSSSSS Off : SSSSSSSSSSSSS : SSSSSSSSS Mo2 : SSSSSSSSSSS
.hone No : %ge
E(mail I" : SSSSSSSSSSSSSSSSSSSSS
+9 Chere ha e you 2een in estingT a= Bank de$osits 2= Mutual #und <E0uity= c= Mutual #und <"e2t= @9 .ur$ose of in estmentT a= Retirement .lane 2= Children Education c= Buying a !ouseM.ro$erty A9 Iour a erage monthly 2usiness income9 a= u$ to Rs9 @?4??? 2= @?4??? to E?4??? *9 Iour a erage sa ings $er monthT a= &$ to E4??? 2= E4??? to +?4??? E9 Chere do you in est for tax sa ingsT a= Insurance 2= E-SS c= ..# d= NSC e= Bonds f= !ousing -oan c= Rs9+?4??? to @?4??? d= %2o e Rs4 @?4??? c= Rs9E?4??? to +4??4??? d= %2o e +4 ??4??? d= Marriage e= Others <S$ecify= d= 1old e= Real Estate f= Stock
3ousali Institute of Management Studies4 "har5ad J@
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED )9 !o5 much insurance co er do you and your family mem2ers ha e and ho5 much $remium do you $ay annuallyT Name of .olicy !older Sum assured ;/ B/ A/ >/ D/ J9 Ser ice ex$ectation from your ad isor9 a= Research 2ased ad ice 2= Monthly #und &$dates c= -iterature to u$date your kno5ledge d= Others<s$ecify= SSSSSSSSSSSSSSSSSSSSSSSSSSSS K9 %re you a5are of the ser ice $ro ided 2y Birla Sun life "istri2ution -td9T Ies No .remium .aid
,9 %re you a5are of the ser ice $ro ided 2y Birla Sun life "istri2ution -td9T a= Research Based ad ice 2= .ortfolio statement c= -iterature to u$date your kno5ledge d= Monthly fund u$date9 +?9 'ike the follo5ing $arameters of mutual fund %9 Safe B9 1ro5th Most safe SS SS SS SS SS !igh gro5th SS SS SS SS SS SS SS SS SS SS SS SS SS SS SS not at all /9less gro5th /ery difficulty /ery difficulty
C9 Redem$tion /ery easy "9 #ormalities /ery easy
3ousali Institute of Management Studies4 "har5ad JA
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED E9 &nderstand %2out the Scheme /ery easy SS SS SS SS SS /ery difficulty
++9 Chat is your o$inion a2out the Birla Sun life "istri2ution -tdT SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS
'hank youP
Bib$i#%!a*"&
B##4s/
3ousali Institute of Management Studies4 "har5ad J*
Cork on Mutual #unds 2y %M#I In est India Mutual #und !and2ook 2y &ma Shashikant9 Marketing Research 2y "onald 'ull and !a5kins Statistics for Management 2y Richard I -e in and "a id9 S9 Ru2in9 #inancial Management 2y M9I9 3han and .939Dain9 2eb sites
5559amfi9com
5559mutualfundindia9com
5559 alueresearchonline9com
5559indiainfoonline9com
5559sundarammutual9com
"ecoding sheet
+= %1E
+9 BE-OC A? @9 A+(*? IE%RS
@= %/EN&ES O# IN/ES'MEN'
a=9 B%N3 "E.OSI'S 2=9 M&'&%- #&N"<EB&I'I=
3ousali Institute of Management Studies4 "har5ad JE
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED A9 *+(E? IE%RS *9 %BO/E(E? c=9 M&'&%- #&N"<"EB'= d=9 INS&R%NCE e=9 1O-" f=9 RE%- ES'%'E g=9 S'OC3 A=9.&R.OSE O# IN/ES'MEN' +=(RE'IREMEN' .-%N 2=(C!I-"ERN E"&C%'ION C(B&IIN1 % !OSEM.RO.ER'I d=(M%RRI%1E e=(O'!ERS E=9 MON'!-I S%/IN1S +9 &.'O(E4??? @9E4 ???(+?4??? A9+?4 ???(@?4??? *9 %BO/E(@?4??? )=9 '%X S%/IN1S %(INS&R%NCE B(E-SS C(..# "(NSC E(BON"S #(!O&SIN1 -O%N J=9 EX.EC'%'ION #ROM %"/ICER +9 RESE%RC! B%SE" %"/ICE @9 MON'!-I #&N" &."%'E A9 -I'ER%'&RE 'O &."%'E IO&R 3NOC-E"1E *9 !%N"-IN1 O# C&S'OMER B&ERIES *= %/1 MON'!-I INCOME +(&.'O(@?4??? @(@?4???(E?4??? A(E?4???(+4 ??4??? *(%BO/E(+4 ??4???
K=9 %C%RENESS %BO&' BS"+(IES ?(NO
3ousali Institute of Management Studies4 "har5ad J)
BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED ,=9 SER/ICE O# BS"%(RESE%RC! B%SE" %"/ICE B(.OR'#O-IO S'%'EMEN' C(-I'ER%'&RE 'O &."%'E IO&R 3NOC-E"1E "(MON'!-I #&N" &."%'E +?= .RE#ER%NCE O# M&'&%- #&N" ON "I##EREN' .%R%ME'ERS %(S%#E B(1ROC'! C( RE"&M.'ION "(#ORM%-I'IES #(&N"ERS'%N"IN1 %BO&' SC!EMES
3ousali Institute of Management Studies4 "har5ad JJ

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BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED

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BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED

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BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED

Objectives an Resea!c" Met"# #$#%&

Resea!c" Met"# #$#%&'

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Sec#n a!& Data'+

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BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED

Int!# (cti#n t# M(t(a$ F(n s

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C#nce*t #0 a )(t(a$ 0(n

Meanin% #0 M(t(a$ F(n

3ousali Institute of Management Studies4 "har5ad J

BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED

C"a!acte!istics #0 a M(t(a$ F(n

3ousali Institute of Management Studies4 "har5ad K

BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED

funds are held 2y the trust9

T&*es #0 M(t(a$ F(n s Open-End Funds

C$#se +En F(n s

L#a an N#+L#a F(n s

3ousali Institute of Management Studies4 "har5ad ,

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3ousali Institute of Management Studies4 "har5ad +@

BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED com$aniesMutilities9

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BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED

3ousali Institute of Management Studies4 "har5ad +*

BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED

3ousali Institute of Management Studies4 "har5ad +E

BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED

3ousali Institute of Management Studies4 "har5ad +)

BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED

3ousali Institute of Management Studies4 "har5ad +J

BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED

3ousali Institute of Management Studies4 "har5ad +K

BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED

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BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED

3ousali Institute of Management Studies4 "har5ad @+

BIRLA SUN LIFE DISTRIBUTION COMPANY LIMITED

TYPES OF MUTUAL FUND'+

"i ersified e0uity funds

Moderate and aggressi e in estors %ggressi e in estors Moderate in estors

Sector fund Index fund

E0uity shares .ortfolio like BSE9 Sensex4 Nifty4etc

/ery high Returns of N%/4 ery 5ith index $erformance

E0uity linked sa ing scheme<E-SS= Balance fund

Moderate and aggressi e in estors Moderate and aggressi e in estors

Salaried and conser ati e in estors

Security and income -i0uidity and moderate income

Interest rate risk -inked interest rate risk

O er +@ months A5eeks Amonths

-i0uidity Omoderate income $reser ation of ca$ital

>/C 9+ 9@