EXECUTIVE SUMMARY

The stock market has always been epicenter for common man. It was belief
amongst the middle class, that it is a playground where only rich played, where big
money made bigger money. The new entrants were often mercilessly whipped and
lost their life savings. Often swearing never to look at the stock market. Therefore
middle & lower classes preferred to stay away from equity because they could not
afford to lose such huge amount at a single stretch.
This project is dedicated to common man, who fascinated by stock market but
prefers to stay away. It is just because of lack of knowledge. This will serve the
purpose of middle & lower class people who are looking for new avenues for
investment. It may very well serve the purpose of being a text on the introduction
to investing in equity. It also gives step-by-step knowledge about stock market,
trading mechanism & risk factor involved in most logical manner. So, that one can
study itself by using this knowledge & invest his/her money in equity and earn
handsome return.
The first section of the project conveys about investments and different investment
opportunities available for investment. It also gives merits & demerits of available
investment opportunities. After that it explain the concept of equity, how one can
invest in equity, different types of market & also explain in detail how the trade
procedure actually goes in stock market. This project also covers up comparative
analysis of all investment option available in Aditya Birla money with investment
pattern.
After that in section 3 it tells about regulatory framework. That is regulatory bodies
which controls stock market i.e. SEBI. It also covers NSE, BSE working
mechanism.
1

OBJECTIVES
To give idea to retail investor about the concept of fundamental analysis of
shares the safest approach for investing in stock market.
Prospects & constraint of investing in shares.
Through the project create awareness among the retail investor about equity
and attracts them to invest in shares.
To study the future of flat charges in India.
To learn different patterns of investment
To disseminate the improvement suggested by the customer to the
organization.
To evaluate the advantages and disadvantages of the various schemes
launched by a Brokerage firm on itself.
To draw a comparison between Aditya Birla flat & Kodak flat
To understand Customer behavior in investment pattern
Pyramids of customers and their interest I investment

RESEARCH METHODOLOGY
2

RESEARCH DESIGN:The Research Design is that conceptual structure with in which research is
conducted. It constitutes the blue print for the collection, measurement and
analyses of data. In this research descriptive research design is used because my
research is concerned with perception aditya Birla money product (IPOs, MF,
Equity, Derivatives (Future & Options), PS, Insurance, and Demat)
Secondary data source includes:
Advertisement pamphlets.
World Wide Web.
Newspapers & Magazines.
Company Magazines.

SWOT ANALYSIS OF STOCK MARKET

3

STRENGTH
Stock market or mutual fund gives more return than any other deposit
Scheme like bank deposits or monthly deposit in post office. Company fixed
deposits and other small savings conducted by government.
WEAKNESS
Market is very flexible and risky. So people who have much idea about the
market may lose their money.
OPPORTUNITY
Current economic situation and monetary policy of government gives Strength
to the stock market so it gives opportunity to investors to invest their money in
stock market.
THREAT
Banks and post offices and other investment schemes are attack on
market potential of stock market.

Aditya Birla Money offers the following services:

Trading facility in Equity segment on and Derivative segment on NSE &
BSE through a single platform
Trading facility in commodity segment, including bullion, oils, gaur seed
etc. through its subsidiary, Aditya Birla Commodities Broking Limited
Depository Participant [DP] services of NSDL and CDSL
Online bidding for IPO and Mutual funds
4

Subscription based brokerage plans

Distribution of Mutual Funds
Insurance
About Aditya Birla Group
A US $28 billion conglomerate, the Aditya Birla Group is in the league of Fortune
500 worldwide. It is anchored by an extraordinary force of 100,000 employees,
belonging to 25 different nationalities. The group operates in 25 countries across
six continents truly India's first multinational corporation.
Aditya Birla Group through Aditya Birla Financial Services Group (ABFSG),
has a strong presence across various financial services verticals that include life
insurance, fund management, distribution & wealth management, security based
lending, insurance broking, private equity and retail broking. The seven companies
representing ABFSG are Birla Sun Life Insurance Company, Birla Sun Life Asset
Management Company, Birla Sun Life Distribution Company, Birla Global
Finance Company, Birla Insurance Advisory & Broking Services, Aditya Birla
Capital Advisors and Aditya Birla Money. In FY 2008-09, the consolidated
revenues of ABFSG from these businesses crossed Rs. 4763 crores, registering a
growth rate of 36%.
Key developments for Aditya Birla Money Limited
Aditya

Birla Money Limited expected to report Fiscal Year 2011 results on

April 17, 2011. This event was calculated by Capital IQ (Created on August
27, 2010). Aditya Birla Money Limited expected to report Fiscal Year 2011 results
on April 17, 2011. This event was calculated by Capital IQ (Created on August 27,
2010).
Aditya

Birla Money Limited expected to report Q2 2011 results on

5

October 21, 2010. This event was calculated by Capital IQ (Created on

July 25, 2010).
Aditya Birla Money Limited expected to report Q2 2011 results on October 21,
2010. This event was calculated by Capital IQ (Created on July 25, 2010).
Aditya

Birla Money Limited Reports Unaudited Earnings Results for the

First Quarter Ended June 30, 2010
Aditya Birla Money Limited reported unaudited earnings results for the first
quarter ended June 30, 2010. For the quarter, the company reported net profit after
tax of INR 30.135 million or INR 0.54 per basic and diluted share on income from
operations of INR 281.476 million compared to net profit after tax of INR 27.159
million or INR 0.49 per basic and diluted share on income from operations of INR
266.693 million for the same quarter a year ago. Profit from operations before
other income & interest was INR 44.387 million compared to INR 44.772 million
for the same quarter a year ago.
Aditya Birla Money Limited - Strategic Analysis Review
Features of
this market
research:

15 pages

About this
market
survey:

This comprehensive SWOT profile of Aditya Birla

Money Limited provides you an in-depth strategic analysis of the companys

businesses and operations. The profile has been compiled by GlobalData to bri.....
More about this market survey
This comprehensive SWOT profile of Aditya Birla Money Limited provides you
an in-depth strategic analysis of the companys businesses and operations. The
6

profile has been compiled by Global Data to bring to you a clear and an unbiased
view of the companys key strengths and weaknesses and the potential
opportunities and threats. The profile helps you formulate strategies that augment
your business by enabling you to
understand your partners, customers and competitors better. This company report
forms part of GlobalDatas Profile on Demand Service, covering over 50,000 of
the worlds leading companies. Once purchased, GlobalDatas highly qualified
team of company analysts will comprehensively research and author a full strategic
analysis of Aditya Birla Money Limited, and deliver this direct to you in pdf
format within two business days (excluding weekends).
The profile contains critical company information including*,
- Business description
A detailed description of the companys operations and business divisions.
- Corporate strategy
Analysts summarization of the companys business strategy.
- SWOT Analysis
A detailed analysis of the companys strengths, weakness, opportunities and
threats.
- Company history
Progression of key events associated with the company.
- Major products and services
A list of major products, services and brands of the company.
A list of key competitors to the company.
- Key employees
A list of the key executives of the company.
- Executive biographies
A brief summary of the executives employment history.
7

- Key operational heads

A list of personnel heading key departments/functions.
- Important locations and subsidiaries
A list and contact details of key locations and subsidiaries of the company.
Note*: Some sections may be missing if data is unavailable for the
company.
Key benefits of buying this profile include, You get detailed information about the
company and its operations to identify potential customers and suppliers.
- The profile analyzes the companys business structure, operations, major products
and services, prospects, locations and subsidiaries, key executives and their
biographies and key competitors. Understand and respond to your competitors
business structure and strategies, and capitalize on their weaknesses. Stay up to
date on the major developments affecting the company.
- The companys core strengths and weaknesses and areas of development or
decline are analyzed and presented in the profile objectively. Recent developments
in the company covered in the profile help you track important events. Equip
yourself with information that enables you to sharpen your strategies and transform
your operations profitably.
- Opportunities that the company can explore and exploit are sized up and its
growth potential assessed in the profile. Competitive and/or technological threats
are highlighted. Gain key insights into the company for academic or business
research.
- Key elements such as SWOT analysis and corporate strategy are incorporated in
the profile to assist your academic or business research needs.

COMPETITORS ANALYSIS

ICICI direct.com is a website from the ICICI group, that allows to buy and sell
Shares, invest in Mutual Funds, IPOs, Postal savings like NSC (National
Savings Certificate) and KVP (Kisan Vikas Patra), Life Insurance and General
Insurance, Derivatives (F&O), GOI Bonds through the internet. A client can also
use the Call N trade facility, wherein he/she can place orders over phone available
across 400 cities of the country.
The company was incorporated on December 02 1999 & it received certificate for
commencement of business from the register of companies, Maharashtra on Jan.
17, 2000. ICICI web trade ltd.Commenced commercial operation on April 17, 2000
Features of ICICI Direct.com: The following are the benefits of using ICICI
account
Among the top 5 online brokers in the World, based on number of daily trades
Seamless trading environment with no hassles of writing cheques or TIFDs
Completely integrated offering of bank, demat and brokering services coupled
with PINS give an end-to-end online offering.
Safe and secure transaction capabilities with Secured Socket Layer (SSL) with
128 bit
encryption
Host of content and Research online with access to data on over 5000
companies.
No delay in payout of funds. Funds paid out on the same day of
exchange pay-out

5paisa.com
9

5paisa is the trade name of India Info line Securities Private Limited (5paisa),
member of National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is
a wholly owned subsidiary of India Info line Ltd, Indias leading and most popular
finance and investment portal. 5paisa has emerged as one of leading players in ebroking space in India. Our key product offerings are as follows:
Target customer segment
Trader Terminal is almost a substitute for NSE NEAT terminal and VSAT. In fact,
it has many more powerful features that only a premium trader can appreciate.
It is for dedicated day traders, who churn their portfolio on minor movements in
the market, sometimes several times a day. Their rapid and high volume trading
requires a
powerful interface for lightening fast order execution.
High Net worth Individuals with large and active equities portfolio who need to
monitor
and action swiftly.
Large corporate or trusts who have dedicated staff to monitor, analyze and
shuffle their portfolios
Trader Terminal features
Trade execution in a fraction of a second!
Live streaming quotes. Price watch on any number of scrips.
Intra day charts, updated live, tick-by-tick.
Live margin, position, marked to market profit & loss report.
The Lowest Brokerage on the face of the earth!
Set any number of price alerts on any number of scrip.
Flexibility to customize screen layout and setting.
Facility to customize any number of portfolios & watch lists.
10

Facility to cancel all pending orders at one click.

Facility to square off all transactions at one click.
Top Gainers, Top Losers, Most Active, updated live.
Index information; index chart, index stock information live.
Market depth, i.e. Best 5 bids and offers, updated live for all scrip
Instant trade confirmation.
Online access to both accounts and DP.
Live updated Order and Trade Book.
Details of pending, executed and rejected orders.
Online access to Customer Service.
128 - bit super safe encryption.
Facility to place orders on the phone in all major cities.
Facility to place after market orders
Online fund transfer facility from leading Banks
Online intra-day technical calls.
Exhaustive database of over 5000 companies
Historical charts and technical analysis tools.
India Info lines world - acclaimed news service and research.

INDIA BULLS
11

Indiabulls

is

depository

participant with the National Securities Depository Limited and Central Depository
Services (India) Limited for trading and settlement of dematerialized shares.
Indiabulls performs clearing services for all securities transactions through its
accounts. They offers depository services to create a seamless transaction platform
execute trades through Indiabulls Securities and settle these transactions through
the Indiabulls Depository Services. Indiabulls Depository Services is part of their
value added services for their clients that create multiple interfaces with the client
and provide for a solution that takes care of all customers needs.
CO FOUNDER:
Sameer Gehlaut is the Chairman, CEO and Whole Time Director of Indiabulls.
Sameer is an engineer from IIT, Delhi (1995) and has worked internationally with
Halliburton in its international services business in 1995. He has utilized his
experience with the international best practices and professional work culture at
Halliburton to lead Indiabulls successfully. Rajiv Rattan is the President, CFO and
Whole Time Director of Indiabulls. Rajiv is an engineer from IIT, Delhi (1994)
and has rich experience in the oil industry, having worked extensively across the
globe in highly responsible assignments with Schlumberger. Rajiv has managed
remote exploration projects providing evaluation services for different clients in
India as well as abroad. Saurabh Mittal is a Director at Indiabulls. Declared the
best graduating student in IIT, Delhi in (1995), Saurabh was also one of the
engineers selected by Schlumberger to work for its international services business
in 1995 and gained experience of working in various global locations. He
graduated as a Baker Scholar with an MBA from the Harvard Business School.
He has also developed in-depth understanding of international financial markets.

HDFC SEC
12

HDFC sec is a brand

brought by

HDFC Securities Ltd,

which has

been promoted by the HDFC Bank & HDFC with the objective of providing the
diverse customer base of the HDFC Group and other investors a capability to
transact in the Stock Exchanges & other financial market transactions.
OBJECTIVE
Buying and selling of select mutual funds units, subscription to initial public
offerings, public issues and rights issues, and purchase of insurance policies and
facilitating asset financing (house and car loans for instance). These products and
services would of course be provided subject to the prevailing rules & regulations
of HDFC sec., the regulatory body, the Securities Exchange Board of India (SEBI)
and the relevant stock exchanges
Products & Services
Cash-n-Carry on both NSE and BSE.
Day trading on both NSE and BSE.
Trade on Futures & Options on the NSE.
Online IPO's.
Online Buying and selling of select mutual funds units.
Online Purchase of insurance policies.
Facilitating asset financing (house and car loans for instance).

13

KARVY
Karvy has traveled the success route, towards building a reputation as an integrated
financial services provider, offering a wide spectrum of services for over 20 years.
Karvy, a name long committed to service at its best. A fame acquired through the
range of corporate and retail services including mutual funds, fixed income, equity
investments, insurance to name a few. Their values and vision of attaining
total competence in our servicing has served as a building block for creating a
great financial enterprise. The birth of Karvy was on a modest scale in the year
1982. It began with the vision and enterprise of a small group of practicing
Chartered Accountants based in Hyderabad, who founded Karvy. They started with
consulting and financial accounting automation, and then carved inroads into the
field of Registry and Share Transfers.
Since then, they have utilized our quality experience and superlative expertise to
go from strength to strength to provide better and new services to the investors.
And today, we can look with pride at the fruits of our experience into
comprehensive financial services provider in the Country. KARVY Group
companies are:
1. Karvy Consultants Limited
2. Karvy Stock Broking Limited
3. Karvy Investor Services Limited
4. Karvy Computer share Private Limited
5. Karvy Global Services Limited
6. Karvy Comtrade Limited
7. Karvy Insurance Broking Private Limited
8. Karvy Mutual Fund Services
9. Karvy Securities Limited
14

KOTAK SECURITIES LIMITED

Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, is the stock
broking and distribution arm of the Kotak Mahindra Group. The company was set
up in 1994. Kotak Securities is a corporate member of both The Bombay Stock
Exchange and The

national Stock Exchange of India Limited. Its operations

include stock broking and distribution of various financial products - including

private and secondary placement of debt and equity and mutual funds. Currently,
Kotak Securities is one of the largest

roking houses in India with wide

geographical reach. The company has four main areas of business: (1) Institutional
Equities, (2) Retail (equities and other financial products), (3) Portfolio
Management and (4) Depository Services.
Institutional

Business
This division primarily covers secondary market broking. It caters to the needs of
foreign
and Indian institutional investors in Indian equities (both local shares and GDRs).
The division also incorporates a comprehensive research cell with sectoral analysts
who cover all the major areas of the Indian economy.
Client

Money Management
This division provides professional portfolio management services to high networth individuals and corporate. Its expertise in research and stock broking gives
the company the right perspective from which to provide its clients with
investment advisory services.
Retail

distribution of financial products

Kotak Securities has a comprehensive retail distribution network, comprising
approximately 7000 agents, 13 branches and over 20 franchisees across India. This
network is used for the distribution and placement of a range of financial products
15

that includes company fixed deposits, mutual funds, Initial Public Offerings,
secondary debt and equity and small savings schemes.
Depository

Services
Kotak Securities is a depository participant with the National Securities Depository
Limited and Central Depository Services (India) Limited for trading and settlement
of dematerialized shares. Since it is also in the broking business, investors who use
its depository services get a dual benefit. They are able to use its brokerage
services to execute transactions and its depository services to settle these. Kotak
Securities' width, volume and quality of offerings regularly earn it accolades from
industry monitors. In recent times, these have included: Mr. Uday Kotak
Executive Vice Chairman & Managing Director KCL as a Primary Dealer offers
the following products /services through its branches at Mumbai, Delhi, Calcutta,
Chennai, Ahmedabad and Bangalore.
Trading in
1) Central and State Government Dated Securities
2) Treasury Bills of Varying maturities
3)Public Sector Bonds both Taxable & Tax-free Commercial Paper
Other Services:
1) Call Money Operations*
2) Research -The Company publishes various newsletters for the benefit of
investors and market participants
3) Placing of Corporate funds into Call money market*
4) Constituent SGL Accounts*

16

MOTILAL OSWAL SECURITIES

Motilal Oswal Securities Ltd. (MOSt) is arguably one of the best brands among
Indian Domestic broking houses enjoying an unmatched and unparallel brand
recall. Financially sound, with an excellent track record of consistent market
growth in all key business segments. MOSt is spread across 24 states in 200 cities
through 300 Business Associates and 52 branches. To reach out to more investors
across India, MOSt builds partnership with high caliber and like minded
individuals and companies who share similar business philosophy, ethics and
values, a sound client base and having the zeal and potential to capture a larger
market share within their allotted territory.
Depository Services
In the times of T+2 having a demat account linked to your trading account
becomes really convenient. The non-trading members also can avail of our
Depository services. You receive regular account reports and an efficient service at
all times. MOSt is a member of both NSDL and CDSL and the service is available
at all our outlets in India.
Depository Service Provided By MODES
Account Opening, Dematerialization, Rematerialization, Account Transfer,
Transmission, Nomination, Pledging and Hypothecation, Account Closures.
Derivatives Derivatives (Futures & Options) are ideal instruments to protect your
portfolio against risk. You can trade with index movements, hedge and leverage
your portfolio by limiting risk but keeping your upside unlimited.
Equity Research
Equity Research is an inherent strength of MOSt. MOSt believes in picking
investment
opportunities where the underlying value is higher than the market price
17

COMPARATIVE ANALYSIS
PRODUCTS AND SERVICES ALONG WITH FEES OFFERED
BY SECURITIES COMPANIES

18

PRODUCTS AND SERVICES

19

Investment Analysis Mutual Fund

MUTUAL FUND
Mutual fund is a mechanism for pooling the resources by issuing units to the
investors and investing funds in securities in accordance with objectives as
disclosed in offer document. Investments in securities are spread across a wide
cross-section of industries and sectors and thus the risk is reduced. Diversification
reduces the risk because all stocks may not move in the same direction in the same
proportion at the same time. Mutual fund issues units to the investors in
accordance with quantum of money invested by them. Investors of mutual funds
are known as unit holders. The investors, in proportion to their investments, share
the profits or losses. The mutual funds normally come out with a number of
schemes with different investment objectives,
which are launched from time to time. A mutual fund is required to be registered
with Securities and Exchange Board of India (SEBI), which regulates securities
markets before it can collect funds from the public.
What is the history of Mutual Funds in India and role of SEBI in mutual
funds
industry?
Unit Trust of India was the first mutual fund set up in India in the year 1963. In
early 1990s, Government allowed public sector banks and institutions to set up
mutual funds.
In the year 1992, Securities and exchange Board of India (SEBI) Act was passed.
The
objectives of SEBI are - to protect the interest of investors in securities and to
promote the development of and to regulate the securities market. As far as mutual
funds are concerned, SEBI formulates policies and regulates the mutual funds to
protect the interest of the investors. SEBI notified regulations for the mutual funds
20

in 1993. Thereafter, mutual funds sponsored by private sector entities were allowed
to enter the capital market. The regulations were fully revised in 1996 and have
been amended thereafter from time to time. SEBI has also issued guidelines to the
mutual funds from time to time to protect the interests of investors. All mutual
funds whether promoted by public sector or private sector entities including those
promoted by foreign entities are governed by the same set of Regulations. There is
no distinction in regulatory requirements for these mutual funds and all are subject
to monitoring and inspections by SEBI. The risks associated with the schemes
launched by the mutual funds sponsored by these entities are of similar type.
What is an Asset Management Company?
The AMC acts as the investment manager of the Trust. The Trustees, with the
approval of SEBI, appoints the AMC. The AMC manages the different investment
schemes of a mutual fund. An AMC may have several mutual fund schemes with
similar or varied investment objectives. Besides its role as the Fund Manager, the
AMC may undertake specified activities such as advisory services and financial
consulting. The AMC also undertakes Customer Services, Accounting, Marketing
and Sales functions for the schemes of the mutual fund.
How is a mutual fund set up?
A mutual fund is set up in the form of a trust, which has sponsor, trustees, asset
management company (AMC) and custodian. The trust is established by a sponsor
or more than one sponsor who is like promoter of a company. The trustees of the
mutual fund hold its property for the benefit of the unit holders. Asset Management
Company (AMC) approved by SEBI manages the funds by making investments in
various types of securities. Custodian, who is registered with SEBI, holds the
securities of various schemes of the fund in its custody. The trustees are vested
21

with the general power of superintendence and direction over AMC. They monitor
the performance and compliance of SEBI Regulations by the mutual fund. SEBI
Regulations require that at least two thirds of the directors of trustee company or
board of trustees must be independent i.e. they should not be associated with the
sponsors. Also, 50% of the directors of AMC must be independent. All mutual
funds are required to be registered with SEBI before they launch any scheme.
What are the benefits of investing through the mutual fund route?
For investors who have limited resources available in terms of capital and the
ability to carry out detailed research and market monitoring, mutual funds offer the
following major advantages : Portfolio Diversification
This enables an investor to hold a diversified investment portfolio, even with a
small amount of investment that would otherwise require big capital.
Professional Management
A team of professional fund managers manages them with in-depth research inputs
from investment analysts.
Reduction / Diversification of Risk
However small his investment, an investor in a mutual fund directly acquires a
diversified portfolio, which reduces his risk of loss as compared to investing
directly in a few instruments.
Reduced Transaction Costs
An investor can reap the benefits of the 'Economies of Scale' as funds pay lesser
costs on brokerage, custodian charges etc, because of larger volumes.
Convenience and flexibility
Investors can easily transfer their holdings from one scheme to another; get
updated market information and so on.
22

 What is Net Asset Value (NAV) of a scheme?

Net Asset Value (NAV) denotes the performance of a particular scheme of a mutual
fund. Mutual funds invest the money collected from the investors in securities
markets. In simple words, Net Asset Value is the market value of the securities held
by the scheme. Since market value of securities changes every day, NAV of a
scheme also varies on day-to-day basis. The NAV per unit is the market value of
securities of a scheme divided by the total number of units of the scheme on any
particular date. For example, if the market value of securities of a mutual fund
scheme is Rs 200 lakhs and the mutual fund has issued 10 lakhs units of Rs. 10
each to the investors, then the NAV per unit of the fund is Rs.20. NAV is required
to be disclosed by the mutual funds on a regular basis - daily or weekly depending on the type of scheme.
What are the different types of Mutual fund Schemes?
Schemes according to Maturity Period:
A mutual fund scheme can be classified into open-ended scheme or close-ended
scheme depending on its maturity period.
Open-ended Fund/ Scheme
An open-ended fund or scheme is one that is available for subscription and
repurchase on a continuous basis. These schemes do not have a fixed maturity
period. Investors can conveniently buy and sell units at Net Asset Value (NAV)
related prices, which are declared on a daily basis. The key feature of open-end
schemes is liquidity.
Close-ended Fund/ Scheme
A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The
fund is open for subscription only during a specified period at the time of launch of
the scheme. Investors can invest in the scheme at the time of the initial public issue
23

and thereafter they can buy or sell the units of the scheme on the stock exchanges
where the units are listed. In order to provide an exit route to the investors, some
close-ended funds give an option of selling back the units to the mutual fund
through periodic purchase at NAV related prices. SEBI Regulations stipulate that at
least one of the two exit routes is provided to the investor i.e. either repurchase
facility or through listing on stock exchanges. These mutual funds schemes
disclose NAV generally on weekly basis.
Schemes according to Investment Objective:
A scheme can also be classified as growth scheme, income scheme, or balanced
scheme considering its investment objective. Such schemes may be open-ended or
close-ended schemes as described earlier. Such schemes may be classified mainly
as follows:
Growth / Equity Oriented Scheme
The aim of growth funds is to provide capital appreciation over the medium to
long- term. Such schemes normally invest a major part of their corpus in equities.
Such funds have comparatively high risks. These schemes provide different
options to the investors like dividend option, capital appreciation, etc. and the
investors may choose an option depending on their preferences. The investors must
indicate the option in the application form. The mutual funds also allow the
investors to change the options at a later date. Growth schemes are good for
investors having a long-term outlook seeking appreciation over a period of time.

Income / Debt Oriented Scheme

The aim of income funds is to provide regular and steady income to investors.
Such schemes generally invest in fixed income securities such as bonds, corporate
debentures, Government securities and money market instruments. Such funds are
24

less risky compared to equity schemes. These funds are not affected because of
fluctuations in equity markets. However, opportunities of capital appreciation are
also limited in such funds. The NAVs of such funds are affected because of change
in interest rates in the country. If the interest rates fall, NAVs of such funds are
likely to increase in the short run and vice versa. However, long-term investors
may not bother about these fluctuations.
Balanced Fund
The aim of balanced funds is to provide both growth and regular income as such
schemes invest both in equities and fixed income securities in the proportion
indicated in their offer documents. These are appropriate for investors looking for
moderate growth. They generally invest 40-60% in equity and debt instruments.
These funds are also affected because of fluctuations in share prices in the stock
markets. However, NAVs of such funds are likely to be less volatile compared to
pure equity funds.
Money Market or Liquid Fund
These funds are also income funds and their aim is to provide easy liquidity,
preservation of capital and moderate income. These schemes invest exclusively in
safer short-term instruments such as treasury bills, certificates of deposit,
commercial paper and inter-bank call money, government securities, etc. Returns
on these schemes fluctuate much less compared to other funds. These funds are
appropriate for corporate and individual investors as a means to park their surplus
funds for short periods.
Gilt Fund
These funds invest exclusively in government securities. Government securities
have no default risk. NAVs of these schemes also fluctuate due to change in

25

interest rates and other economic factors as are the case with income or debt
oriented schemes.
Index Funds
Index Funds replicate the portfolio of a particular index such as the BSE Sensitive
index, S&P NSE 50 index (Nifty), etc These schemes invest in the securities in the
same weightage comprising of an index. NAVs of such schemes would rise or fall
in accordance with the rise or fall in the index, though not exactly by the same
percentage due to some factors known as "tracking error" in technical terms.
Necessary disclosures in this regard are made in the offer document of the mutual
fund scheme. There are also exchange traded index funds launched by the mutual
funds, which are traded on the stock exchanges.
What are Sector specific funds/schemes?
These are the funds/schemes, which invest in the securities of only those sectors or
industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast
Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these
funds are dependent on the performance of the respective sectors/industries. While
these funds may give higher returns, they are more risky compared to diversified
funds. Investors need to keep a watch on the performance of those
sectors/industries and must exit at an appropriate time. They may also seek advice
of an expert.
What are Tax Saving Schemes?
These schemes offer tax rebates to the investors under specific provisions of the
income Tax Act, 1961 as the Government offers tax incentives for investment in
specified avenues. e.g. Equity Linked Savings Schemes (ELSS). Pension schemes
launched by the mutual funds also offer tax benefits. These schemes are growth

26

oriented and invest pre-dominantly in equities. Their growth opportunities and

risks associated are like any equity-oriented scheme.
What is a Systematic Investment Plan?
Unit holders can benefit by investing specified rupee amounts at regular intervals
for a continuous period. The SIP allows the unit holders to invest a fixed amount of
rupees at regular intervals for purchasing additional Units of the Schemes at NAV
based prices. This concept is called Rupee Cost Averaging.
What are the benefits of a Systematic Investment Plan?
By investing an equivalent amount at regular intervals, each month for example,
the investors do not have to worry about catching market highs and lows, because
their monthly contribution will buy more Units when prices are low and fewer
Units when prices are high. The net result is that, over a long period of time, their
average cost could be lower than the average market price, and when they
eventually sell your Units, their gain could be higher than if they had invested a
lump sum. Thus, by investing a fixed amount of Rupees at regular intervals, Unit
holders can take advantage of the benefits of Rupee Cost Averaging, at the same
time saving a fixed amount of Rupees each month.
What is a Systematic Withdrawal Plan?
A Systematic Withdrawal Plan is a strategy that allows the unit holder to withdraw
a specified sum of money each month / quarter from his investments in the scheme.
What are the benefits of a Systematic Withdrawal Plan? An SWP is ideal for
investors seeking a regular inflow of funds for their needs. It is also ideally suited
to retirees or individuals, who wish to invest a lump sum and withdraw from the
investment over a period of time.

27

 What are Entry/Exit Loads and CDSC?

Charges levied by fund managers to the investors to cover distribution / sales /
marketing expenses are often called loads. The load charged to an investor at the
time of an investor's entry into a scheme / fund, by deducting a specific amount
from his initial contribution is called an Entry load. The load charged to an investor
at the time of an investor's exit from a scheme / und, by deducting a specific
amount from his redemption proceeds is called an Exit load. Some funds may also
charge different amounts of loads to the investors, depending upon how many
years the investor has stayed with the fund; the longer the investor stays with the
und, less the amount of 'exit load' he is charged. This is called 'Contingent Deferred
Sales Charge' (CDSC).
What is a Load or no-load Fund?
A Load Fund is one that charges a percentage of NAV for entry or exit. That is,
each time one buys or sells units in the fund, a charge will be payable. This charge
is used by the mutual fund for marketing and distribution expenses. Suppose the
NAV per unit is Rs.10. If the entry as well as exit load charged is 1%, then the
investors who buy would be required to pay Rs.10.10 and those who offer their
units for repurchase to the mutual fund will get only Rs.9.90 per unit. The investors
should take the loads into consideration while making investment as these affect
their yields/returns. However, the investors should also consider the performance
track record and service standards of the mutual fund, which are more important.
Efficient funds may give higher returns in spite of loads. A no-load fund is one that
does not charge for entry or exit. It means the investors can enter the fund/scheme
at NAV and no additional charges are payable on purchase or sale of units.
What is Sales/Purchase price?
The price or NAV a unit holder is charged while investing in an open-ended
scheme is called sales price. It may include sales load, if applicable.
28

 What is repurchase / redemption price?

Repurchase or redemption price is the price or NAV at which an open-ended
scheme purchases or redeems its units from the unit holders. It may include exit
load, if applicable.
What is a Switch?
Some Mutual Funds provide the investor with an option to shift his investment
from one scheme to another within that fund. The Switch will be effected by way
of a redemption of Units from the scheme and a reinvestment of the redemption
proceeds in the 'Other Scheme(s)' subject to the compliance of the switch with the
redemption rules of this Scheme and the issue rules of the 'other scheme'. The price
at which the Units will be switched out of the Scheme, will be based on the
applicable redemption price and the proceeds will be invested in the 'other scheme'
the prevailing Public Offer Price (POP) for units in that Scheme. Switching allows
the Investor to alter the allocation of their investment among the schemes in order
to meet their changed investment needs, risk profiles or changing circumstances
during their lifetime.\
What is an assured return scheme?
Assured return schemes are those schemes that assure a specific return to the unit
holders irrespective of performance of the scheme. A scheme cannot promise
returns unless such returns are fully guaranteed by the sponsor orAMC and this is
required to be disclosed in the offer document. Investors should carefully read the
offer document whether return is assured for the entire period of the scheme or
only for a certain period. Some schemes assure returns one year at a time and
they review and change it at the beginning of the next year.

29

 Can a mutual fund change the asset allocation while deploying funds of
investors?
Considering the market trends, any prudent fund managers can change the asset
allocation i.e. he can invest higher or lower percentage of the fund in equity or debt
instruments compared to what is disclosed in the offer document. It can be done on
a short term basis on defensive considerations i.e. to protect the NAV. Hence the
fund managers are allowed certain flexibility in altering the asset allocation
considering the interest of the investors. In case the mutual fund wants to change
the asset allocation on a permanent basis, they are required to inform the unit
holders and giving them option to exit the scheme at prevailing NAV without any
load
Can non-resident Indians (NRIs) invest in mutual funds?
Yes, non-resident Indians can also invest in mutual funds. Necessary details in this
respect are given in the offer documents of the schemes.
How to invest in a scheme of a mutual fund?
Mutual funds normally come out with an advertisement in newspapers publishing
the date of launch of the new schemes. Investors can also contact the agents and
distributors of mutual funds who are spread all over the country for necessary
information and application forms. Forms can be deposited with mutual funds
through the agents and distributors who provide such services. Now days, the post
offices and banks also distribute the units of mutual funds. However, the investors
may please note that the mutual funds schemes being marketed by banks and post
offices should not be taken as their own schemes and they give no assurance of
returns. The only role of banks and post offices is to help in distribution of mutual
funds schemes to the investors. Investors should not be carried away by
commission/gifts given by agents/distributors for investing in a particular scheme.

30

On the other hand they must consider the track record of the mutual fund and
should take objective decisions.
How much should one invest in debt or equity oriented schemes?
An investor should take into account his risk taking capacity, age factor, financial
position, etc. As already mentioned, the schemes invest in different type of
securities as disclosed in the offer documents and offer different returns and risks.
Investors may also consult financial experts before taking decisions. Agents and
distributors may also help in this regard.
What should an investor look into an offer document?
An abridged offer document, which contains very useful information, is required to
be given to the prospective investor by the mutual fund. The application form for
subscription to a scheme is an integral part of the offer document. SEBI has
prescribed minimum disclosures in the offer document. An investor, before
investing in a scheme, should carefully read the offer document. Due care must be
given to portions relating to main features of the scheme, risk factors, initial issue
expenses and recurring expenses to be charged to the scheme, entry or exit loads,
sponsor's track record, educational qualification and work experience of key
personnel including fund managers, performance of other schemes launched by the
mutual fund in the past, pending litigations and penalties imposed, etc.
How to choose a scheme for investment from a number of schemes
available?
As already mentioned, the investors must read the offer document of the mutual
fund scheme very carefully. They may also look into the past track record of
performance of the scheme or other schemes of the same mutual fund. They may
also compare the performance with other schemes having similar investment
objectives. Though past performance of a scheme is not an indicator of its future
performance and good performance in the past may or may not be sustained in the
31

future, this is one of the important factors for making investment decision. In case
of debt-oriented schemes, apart from looking into past returns, the investors should
also see the quality of debt instruments, which is reflected in their rating. A scheme
with lower rate of return but having investments in better-rated instruments may be
safer. Similarly, in equities schemes also, investors may look for quality of
portfolio. They may also seek advice of experts.
How to fill up the application form of a mutual fund scheme?
An investor must mention clearly his name, address, number of units applied for
and such other information as required in the application form. He must give his
bank account number so as to avoid any fraudulent encashment of any cheque/draft
issued by the mutual fund at a later date for the purpose of dividend or repurchase.
Any changes in the address, bank account number, etc at a later date should be
informed to the mutual fund immediately.
When will the investor get certificate or statement of account after investing in a
mutual fund?
Mutual funds are required to dispatch certificates or statements of accounts within
six weeks from the date of closure of the initial subscription of the scheme. In case
of close-ended schemes, the investors would get either a demat account statement
or unit certificates as these are traded in the stock exchanges. In case of openended schemes, a statement of account is issued by the mutual fund within 30 days
from the date of closure of initial public offer of the scheme. The procedure of
repurchase is mentioned in the offer document.
How long will it take for transfer of units after purchase from stock markets in
case of close ended schemes?
According to SEBI Regulations, transfer of units is required to be done within
thirty days from the date of lodgment of certificates with the mutual fund.

32

 As a unit holder, how much time will it take to receive dividends / repurchase
proceeds?
A mutual fund is required to dispatch to the unit holders the dividend warrants
within 30 days of the declaration of the dividend and the redemption or repurchase
proceeds within 10 working days from the date of redemption or repurchase
request made by the unit holder. In case of failures to despatch the
redemption/repurchase proceeds within the stipulated time period, Asset
Management Company is liable to pay interest as specified by SEBI from time to
time (15% at present).
Can a mutual fund change the nature of the scheme from the one specified
in the offer
document?
Yes. However, no change in the nature or terms of the scheme, known as
fundamental attributes of the scheme e.g. structure, investment pattern, etc. can be
carried out unless a written communication is sent to each unitholder and an
advertisement is given in one English daily having nationwide circulation and in a
newspaper published in the language of the region where the head office of the
mutual fund is situated. The unit holders have the right to exit the scheme at the
prevailing NAV without any exit load if they do not want to continue with the
scheme. The mutual funds are also required to follow similar procedure while
converting the scheme form close-ended to open-ended scheme and in case of
change in sponsor.

33

 How will an investor come to know about the changes, if any, which may occur
in the mutual
fund?
There may be changes from time to time in a mutual fund. The mutual funds are
required to inform any material changes to their unit holders. Apart from it, many
mutual funds send quarterly newsletters to their investors. At present, offer
documents are required to be revised and updated at least once in two years. In
the meantime, new investors are informed about the material changes by way of
addendum to the offer document till the time offer document is revised and
reprinted.
How to know the performance of a mutual fund scheme?
The performance of a scheme is reflected in its net asset value (NAV), which is
disclosed on daily basis in case of open-ended schemes and on weekly basis in
case of close-ended schemes. The NAVs of mutual funds are required to be
published in newspapers. The NAVs are also available on the web sites of mutual
funds. All mutual funds are also required to put their NAVs on the web site of
Association of Mutual Funds in India (AMFI) www.amfiindia.com and thus
the investors can access NAVs of all mutual funds at one place The mutual funds
are also required to publish their performance in the form of half-yearly results,
which also include their returns/yields over a period of time i.e. last six months, 1
year, 3 years, 5 years and since inception of schemes. Investors can also look into
other details like percentage of expenses of total assets as these have an affect on
the yield and other useful information in the same half-yearly format.
The mutual funds are also required to send annual report or abridged annual report
to the unit holders at the end of the year. The financial newspapers on a weekly
basis are publishing various studies on mutual fund schemes including yields of
different schemes. Apart from these, many research agencies also publish research
34

reports on performance of mutual funds including the ranking of various schemes

in terms of their performance. Investors should study these reports and keep
themselves informed about the performance of various schemes of different mutual
funds. Investors can compare the performance of their schemes with those of other
mutual funds under the same category. They can also compare the performance of
equity-oriented schemes with the benchmarks like BSE Sensitive Index, S&P CNX
Nifty, etc. On the basis of performance of the mutual funds, the investors should
decide when to enter or exit from a mutual fund scheme.
How to know where the mutual fund scheme has invested money mobilized
from the
investors?
The mutual funds are required to disclose full portfolios of all of their schemes on
half-yearly basis, which are published in the newspapers. Some mutual funds send
the portfolios to their unit holders. The scheme portfolio shows investment made in
each security i.e. equity, debentures, money market instruments, government
securities, etc. and their quantity, market value and % to NAV. These portfolio
statements also required to disclose illiquid securities in the portfolio,
investmentmade in rated and unrated debt securities, non-performing assets
(NPAs), etc. Some of the mutual funds send newsletters to the unit holders on
quarterly basis, which also contain portfolios of the schemes.
Is there any difference between investing in a mutual fund and in an initial
public
offering (IPO) of a company?
Yes, there is a difference. IPOs of companies may open at lower or higher price
than the issue price depending on market sentiment and perception of investors.
However, in the case of mutual funds, the par value of the units may not rise or fall
immediately after allotment. A mutual fund scheme takes some time to make
35

investment in securities. NAV of the scheme depends on the value of securities in

which the funds have been deployed.
If schemes in the same category of different mutual funds are available, should
one choose a scheme with lower NAV?
Some of the investors have the tendency to prefer a scheme that is available at
ower NAV compared to the one available at higher NAV. Sometimes, they prefer a
new scheme, which is issuing units at Rs. 10 whereas the existing schemes in the
same category are available at much higher NAVs. Investors may please note that
in case of mutual funds schemes, lower or higher NAVs of similar type schemes of
different mutual funds have no relevance. On the other hand, investors should
choose a scheme based on its merit considering performance track record of the
mutual fund, service standards, professional management, etc. This is explained in
an example given below.
Suppose scheme A is available at a NAV of Rs.15 and another scheme B at Rs.90.
Both schemes are diversified equity oriented schemes. Investor has put Rs. 9,000
in each of the two schemes. He would get 600 units (9000/15) in scheme A and 100
units (9000/90) in scheme B. Assuming that the markets go up by 10 per cent and
both the schemes perform equally good and it is reflected in their NAVs. NAV of
scheme A would go up to Rs. 16.50 and that of scheme B to Rs. 99. Thus, the
market value of investments would be Rs. 9,900 (600* 16.50) in scheme A and it
would be the same amount of Rs. 9900 in scheme B (100*99). The investor would
get the same return of 10% on his investment in each of the schemes. Thus, lower
or higher NAV of the schemes and allotment of higher or lower number of units
within the amount an investor is willing to invest, should not be the factors for
making investment decision. Likewise, if a new equity oriented scheme is being
offered at Rs.10 and an existing scheme is available for Rs. 90, should not be a
factor for decision making by the investor. Similar is the case with income or debt36

oriented schemes. On the other hand, it is likely that the better-managed scheme
with higher NAV may give higher returns compared to a scheme, which is
available at lower NAV but is not managed efficiently. Similar is the case of fall in
NAVs. Efficiently managed scheme at higher NAV may not fall as much as
inefficiently managed scheme with lower NAV. Therefore, the investor should give
more weightage to the professional management of a scheme instead of lower NAV
of any scheme. He may get much higher number of units at lower NAV, but the
scheme may not give higher returns if it is not managed efficiently.
How significant are fund costs while choosing a scheme? The cost of investing
through a mutual fund is not insignificant and deserves due consideration,
especially when it comes to fixed income funds. Management fees, annual
expenses of the fund, sales loads etc. can take away a significant portion of your
returns. Please also carefully examine the fee a fund charges for getting in and out
of the fund.
Are the companies having names like mutual benefit the same as mutual funds
schemes?
Investors should not assume some companies having the name "mutual benefit" as
mutual funds. These companies do not come under the purview of SEBI. On the
other hand, mutual funds can mobilize funds from the investors by launching
schemes only after getting registered with SEBI as mutual funds.
Is the higher net worth of the sponsor a guarantee for better returns?
In the offer document of any mutual fund scheme, financial performance including
the net worth of the sponsor for a period of three years is required to be given. The
only purpose is that the investors should know the track record of the company,
which has sponsored the mutual fund. However, higher net worth of the sponsor
does not mean that the scheme would give better returns or the sponsor would
compensate in case the NAV falls.
37

 Where can an investor look out for information on mutual funds?

Almost all the mutual funds have their own web sites. Investors can also access the
NAVs, half yearly results and portfolios of all mutual funds at the web site of
Association of mutual funds in India (AMFI) www.amfiindia.com. AMFI has also
published useful literature for the investors. Investors can log on to the web site of
SEBI www.sebi.gov.in and go to "Mutual Funds" section for information on SEBI
regulations and guidelines, data on mutual funds, draft offer documents filed by
mutual funds, addresses of mutual funds, etc. Also, in the annual reports of SEBI
available on the web site, a lot of information on mutual funds is given. There are a
number of other web sites, which give a lot of information of various schemes of
mutual funds including yields over a period of time. Many newspapers also publish
useful information on mutual funds on daily and weekly basis. Investors may
approach their agents and distributors to guide them in this regard.
If mutual fund scheme is wound up, what happens to money invested?
In case of winding up of a scheme, the mutual funds pay a sum based on prevailing
NAV after adjustment of expenses. Unit holders are entitled to receive a report on
winding up from the mutual funds, which gives all necessary details.
How can the investors redress their complaints?
Investors would find the name of contact person in the offer document of the
mutual fund scheme that they may approach in case of any query, complaints or
grievances. Trustees of a mutual fund monitor the activities of the mutual fund.
The names of the directors of Asset Management Company and trustees are also
given in the offer documents. Investors can also approach SEBI for redressed of
their complaints. On receipt of complaints, SEBI takes up the matter with the
concerned mutual fund and follows up with them till the matter is resolved.
Investors may send their complaints

38

MUTUAL FUND BENEFITS

An expert on your side:
When you invest in a mutual fund, the analysis and strategic thinking that goes into
investing is not your worry. That's what a fund manager does for you.
Limited risk:
Mutual funds are diversification in action and hence do not rely on the
performance of a single entity.
More for less:
Your money can probably afford just a handful of stocks, but by investing in just
one fund, you could get yourself a number of units across a spread of companies
and industries!
Easy investing:
You can invest in a mutual fund with as little as Rs. 5,000. Salaried individuals also
have the option of investing a little every month in a SIP or Systematic Investment
Plan.
Convenience:
You can invest directly with a fund house, or through your financial adviser, or
even over the Internet.
Quick access to your money:
Should you need your money at short notice, you can usually get it in four working
days.
Transparency:
As an investor, you get updates on the value of your units, information on specific
investments made by the mutual fund and the fund manager's strategy and outlook.
Low transaction costs:
A mutual fund, by the sheer scale of its investments is able to carry out costeffective brokerage transactions.
39

Tax benefits:
Over the years, tax policies on mutual funds have been favourable to investors and
continue to be so.
Investor protection:
A mutual fund in India is registered with The Securities and Exchange Board of
India or SEBI, which also monitors the operations of mutual funds to protect your
interests.
Drawbacks of Mutual Funds
Mutual funds have their drawbacks and may not be for everyone:
No Guarantees: No investment is risk free. If the entire stock market
declines in value, the value of mutual fund shares will go down as well, no
matter how balanced the portfolio. Investors encounter fewer risks when
they invest in mutual funds than when they buy and sell stocks on their own.
However, anyone who invests through a mutual fund runs the risk of losing
money.
Fees and commissions: All funds charge administrative fees to cover their
day-to-day expenses. Some funds also charge sales commissions or "loads"
to compensate brokers, financial consultants, or financial planners. Even if
you don't use a broker or other financial adviser, you will pay a sales
commission if you buy shares in a Load Fund.
Taxes: During a typical year, most actively managed mutual funds sell
anywhere from 20 to 70 percent of the securities in their portfolios. If your
fund makes a profit on its sales, you will pay taxes on the income you
receive, even if you reinvest the money you made.
Management risk: When you invest in a mutual fund, you depend on the
fund's manager to make the right decisions regarding the fund's portfolio. If
the manager does not perform as well as you had hoped, you might not make
40

as much money on your investment as you expected. Of course, if you invest

in Index Funds, you forego management risk, because these funds do not
employ managers
From an investors' viewpoint mutual funds have several advantages such as:
Professional management and research to select quality securities
Spreading risk over a larger quantity of stock whereas the investor has
limited to buy only a hand full of stocks. The investor is not putting all his
eggs in one basket
Ability to add funds at set amounts and smaller quantities such as $100 per
month
Ability to take advantage of the stock market which has generally out
performed other investment in the long run
Fund manager are able to buy securities in large quantities thus reducing
brokerage fees
However there are some disadvantages with mutual funds such as:

The investor must rely on the integrity of the professional fund manager
Fund management fees may be unreasonable for the services rendered
The fund manager may not pass transaction savings to the investor
The fund manager is not liable for poor judgment when the investor's fund

loses value
There may be too many transactions in the fund resulting in higher fee/cost
to the investor - This is sometimes call "Churn and Earn"
Prospectus and Annual report are hard to understand
Investor may feel a lost of control of his investment dollars
There may be restrictions on when and how an investor sells/redeems his
mutual fund shares

1. Where do you put your savings?

o Stock Market
41

o
o
o
o
o

Govt.Securities
Mutual Funds
Banks
Post Office.
Real Estate

Other
Please specify_____________________________________________

The purpose of this question is to know about where people put their saving and in
which investment options they are more interested.
The analysis show that most of the people aware about the Banks but in current
situation they are also aware about the stock market and mutual funds.
So this point shows that investment related organization like ICICI WEB TRADE
LTD, has market potential to grow their business and influence to spectators about
the current market situation
.

1. How do you made your savings and investment plan.

42

o
o
o
o
o
o
o

Risk Reduction
Return potential
Affordability
well regulated
Transparency
Tax efficiency
Easy Entry and Exit

The purpose of the question is to know about that how people made their
investment plans .The most of the people do not want to take more risk nut up to a
limit they are ready to take risk for return potential. So it is a great opportunity to
stock market or mutual funds organization to increase their customers just to
influence by their performance and they can increase their market potential

2. Does age factor affects the investment or savings policy.

(A)Yes
43

(B) No
(C) Cant say.

The purpose of this question is to know about the various investors mental
position about the investment strategy. Different age group people choose their
investment strategy by their age requirement. The analysis of this question shows
that 78% people say that yes Age factor effects to make a plan for investment.

3. What effects an investor to accept the investment policy of an

organization.
44

(A) Past Performance

(B) Current Economic Situation
(C)Government Approval
Others Please Specify________________

The purpose of the question is to know about the attributes of a broking agency
which is being analyze by investors before invest their money through that
organization. The result shows that the past performance of the organization and
government approval is the two most important factors who effects to make
investment planning strategy before investment.

4. Should government establish an organization that will assure to

people about return and guide about risk?
(A) Yes
45

(B) No
(C) Cant say

The purpose of the question is to know about what are the reasons in India that
most of the people do not want to invest their money in stock market or mutual
funds rather banks. The feedback, which has been found by the recipient shows
that the Indian investor want that government will insure to people about the risk
and return. So they are very conscious about the government approval
organization.

5. What are the common errors exist when investors select

their investment plan?
(A) Dont analyze record
(B) Deceived by brokers
46

(C) Patience
(D) Cant say.

6. How do you compare investment alternatives on key investment

attributes?
(A) Return
(B) Risk
47

(C) Future Expectation

(D) Past Record.

7. What attributes of an organization will help to investors to adopt

their
policy?
48

(A) Glimpses
(B) Past Performances.
(C) Government approval
(D) Legitimate Statement
(E) Cant Say.

In current situation most of the people are being deceived by the various
investment organizations. So the question has been asked that which is the most
important factor by which investors are being get mental assured for investment.
The result which came to analyze this question by recipient shows that government
approval organization is their first choice for investment

8. Which aspect will attract to investors and speculators to invest

their
49

money in stock market or mutual fund.

(A) Less Risk
(B) More Return
(C) Less Flexibility
(D) Transparent
(E) All of the above

The purpose of this question is that what are the most influence factor to an
investor to accept to an organization. or an investment options . The market survey
shows that most of the people want that an organization should be less risky, more
profitable means there return should be based on return. They should be
transparent in their work and less flexibility.

9. What is the age group who has been targeted to know about the
50

response of the questionnaire?

AGE:
o
o
o
o

<25
25-45
46-60
ABOVE 61

Demographic Chart

This question shows that the age group of recipient who has been targeted to know
about the response of the questionnaire. It shows that question has been asked by
the all category of people, but majority of questions has been asked by the two
category25-45 and 46-60. Because they are more aware about the current
investment situation

10. What type of occupational person are found interested in share

51

market?
o
o
o
o
o
o

OCCUPATION:
SERVICE
BUSINESS
PROFESSIONAL
SELF EMPLOYED
HOUSE WIFE

The targeted recipient were house wives self employed professional service men
and the persons who are doing their business. Every kind of investors has been
targeted because to know about the mentality of attacking and defensive investor
like wise women of India are defensive investors they dont want to take more
risk. relatively men. Business men are professional are want to invest in mutual
fund because their risk taking ability and return potential desire.

11.Chart based on income group:

INCOME:
o 0-100000
o 100001-300000
o 300001-500000
52

o 500001 and above

MARKET STRUCTURE
Market structure analysis or segmentation seeks to identify and profile subgroups f
a given population .POPULAS has conducted numerous Segmentation studies for a
wide variety of clients involving a wide range of Products of services and
53

institutions. POPULAS has been on the cutting edge of development of

sophisticated techniques for the analysis of market segmentation data and graphic
presentation of the analytical results.

Cluster analysis
Cluster analysis is a set of techniques for separating objects into mutually
exclusive groups such that the groups are relatively homogeneous .It is concerned
with classification and is part of the field of the numerical taxonomy. A problem
faced by many user of cluster analysis is that every cluster analysis always
producers clusters where there is underlying structure in the data or not .given the
natural tendency to read meaning into even the most random of patterns that fact
that a solution seems reasonable is no guarantee that the result would be
reproducible with a different sample or a different set of variables.

RISK PRFOFILE OF INVESTORS

The main purpose of this project to check the risk profile of investors under some
circumstances which is risk and return, sex and age, Income and less income and
other factors. Here some important strategy of investors is given. The investors is
classified in two category first is attacking customers and second are defensive
customers. Especially in India those persons who have high income accept
attacking investment and the person those are lower income group are defensive
investors. Women of India are defensive investors. They prefer less risk relatively
high return. Similarly demographically those persons who live in villages or small
towns are conscious about risk they preferred less flexibility more transparency
before investment. Thus age group people have also their strategy of investment
.Generally the age group pf 25-45 want to invest their money in stock market but
54

after 45 to 60 people have desire to gain more return but they do not want to take
direct risk so they preferred investment mutual fund. Investors above 60 preferred
bank investment or monthly investment in post office because they want
availability as well as safety. They are aware about the risk.

IN DEFENSE OF DEFENSIVE INVESTORS

The investors are generally categorized in two types. Most of the Indian in Respect
of Indian investment strategy, are defensive investors. Since most of Indians
belong from the lower or middle class income group So they are very cautious
about the investment plan. Generally they do not want to invest their money in
stock market or mutual fund because they have no idea about these types of
scheme or the impression of these regulating body is not impressive. To consider as
many instances one thing found that is common that women are defensive
investors. This is essentially true for India. In the west there are many studies on
behavioral finance show casing varied investment habits among women across
classes. Defensive investors would get low returns and if invested on almost
riskfree assets such as bank deposits governments bank deposits, Government
Bonds etc are more less assured or the capital, in times of uncertainty. For Instance
a short tern bank fixed deposit offers a minuscule 6% regular return but protects
your capabilities. On the other hand equity related Instrument might offer you huge
returns, but there is no consistency. In uncertain times even your capital could be
wiped off.

EXPERIENCE AT ADITYA BIRLA MONEY

I had a great learning experience during my 6 weeks training at Aditya Birla
Money. I got to learn about the basics of stock market, equity, mutual funds, and
55

online trading account and demat account during my training duration. I am sure
that these topics will help me a great deal in comprehending finance more easily
during the completion of my MBA program. Also these 6 weeks corporate
exposure will help me face the working challenge in my future life. Competitors
Analysis helped me to understand the cut throat competition in the financial
market. Investment Analysis helped me to understand the mindset of the investors
and the attitude of the investors towards the stock market. The CRM analysis
taught me the various aspects of Customer Relationship anagement. During my
training I got to learn how to deal with the customers. My first practical learning
experience was with Mr. P K Jain SAS Investment Solution Chief Executive
Officer(CEO) Noida, Sec-8. He was a tough client; ask numerous questions which
I unable to handle so, quickly I make a call to my boss who lastly close the deal.
Through doing practical my times I gain my confidence and now I feel quiet
comfortable in handling customer individually. At the end I never forget to indebt
my gratitude to industry mentor Mr. Gyanesh Kumar who constantly gave small
inputs from his side to increase my knowledge. All the members in the branch were
very supportive.

CONCLUSION
The project is COMPRATIVE ANALYSIS BETWEEN MUTUAL FUND OF
ADITYA BIRLA MONEY LTD So to analyze the marketing research some
56

important findings have been obtained about the Indian investors and Indian
investment organization. Most of the Indians are aware about high risk and high
return. So it is necessary that government will encourage to investors to invest in
Market. Large census are not well aware of this financial instruments, they only
known with the term mutual & share are something which exit in the market.
Traditional person take it as a speculation .
Lack of awareness is declining the market of such financial product so from my
point of view proper mechanism should be adopted to make learn this census about
the product and make him able to understand the market of such product so that
they also penetrate. Some important findings are that the women are defensive
investors and small investors want to invest their money in banks or post offices.
But after research it has found that the current economic situation and government
role people are attracting towards market investment.
Investment related organization should be transparent and they should be less
flexible. Government should guide to people about the investment Organization
and investment options .Because people are very conscious about the government
approval organization. Because they are ready to take the risk if government is
ready to prevent or sustain them. ADITYA BIRLA MONEY LTD. has a great
opportunity to increase their market potential especially in this market situation.
Most of the branded broking agencies are coped by security exchange board of
India due to their illegal works and scams related to IPOs. ADITYA BIRLA
MONEY LTD has a unique brand name who assures to people about the
transparent work and obtaining their belief.
RECOMMENDATION
Since the project is related to assess the risk profile of investor and how to increase
the market potential of ADITYA BIRLA MONEY LTD. So every precise aspect
57

like risk taking, influencing factors of investment Organization government role,

age, sex income factors have been analyzed.
Since the problem is related to investors profiles. Market potential of ADITYA
BIRLA MONEY LTD therefore some Recommendations are being putted for
improvement.
Investors (especially lower and middle income group should invest some
percent of their income in stock market or mutual fund.
Investment related organization should be transparent and they should guide
to see the mentality of investors like attacking investors or defensive
investors
Government should monitor the stock market closely and they should
provide some guide to investors about investment

BIBLIOGRAPHY
BOOKS
58

PHILIP KOTLER
CR KOTHARI
JOURNAL
BUISINESS WORLD
BUSINESS TODAY
OUTLOOK
NEWS PAPER
TIMES OF INDIA
BUSINESS TIMES
ECONOMIC TIMES

WEBSITES
www. Aditya Birlamoney.com
www.Aditya BirlaGroup.com
www.msnsearch.com
www.icicidirect.com
www.indiabulls.com
www.sharekhan.com
www.mutualfund.com

59