Final Edited Report Shubhi

SUMMER TRAINING PROJECT REPORT
(RMB-035)
ON
“A STUDY ON INVESTORS PREFERENCE TOWARDS THE
PRODUCTS OF
EDELWEISS BROKING LIMITED, LUCKNOW
(WITH SPECIAL REFERENCE TO ULIP AND MUTUAL FUNDS)”
Submitted in the partial fulfillment for award the degree of

Master of Business Administration (MBA)
Batch: 2016 -18
Dr. A.P.J.A.K. Technical University, Lucknow

Submitted By:
SHUBHI ARORA
MBA-3rd semester
ROLLNO – 1601470022
Faculty of Management Science

Shri Ram Murti Smarak College of Engineering & Technology, Bareilly
Summer Training Project Report
Shubhi Arora 2
Shri Ram Murti Smarak College of Engineering & Technology,

Bareilly (U.P.)
CERTIFICATE
This is to certify that SHUBHI ARORA, a regular student of MBA 2016 Batch has
undergone Summer Training in EDELWEISS BROKING LIMITED LUCKNOW
on the topic “A STUDY ON INVESTORS PREFERENCE TOWARDS THE
PRODUCTS OF EDELWEISS BROKING LIMITED, LUCKNOW(WITH
SPECIAL REFERENCE TO ULIP AND MUTUAL FUNDS)” for a period of six
week commencing from 5 June 2017 to 20 July 2017.
This summer training project report embodies the facts and figure collected and
interpreted by her during the course of training.
This certificate is issued by the undersigned on the basis of the summer training
certificate of the organization in which the student completed the Summer Training
during above period.
Dr. Anant K. Srivastava Date:

(Head of Department) Place:Bareilly
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DECLARATION
This is to declare that I SHUBHI ARORA student of M.B.A in Faculty of

Management Science, SHRI RAM MURTI SMARAK COLLEGE OF
ENGINEERING AND TECHNOLOGY, U.P. have given original data and
information to best of my knowledge in the report entitled “A STUDY ON
INVESTORS PREFERENCE TOWARDS THE PRODUCTS OF EDELWEISS
BROKING LIMITED, LUCKNOW(WITH SPECIAL REFERENCE TO ULIP
AND MUTUAL FUNDS)” .I further state that no part of this information has been
used for any assignment but for partial fulfillment of the requirements towards the
completion of the above mentioned course.
SHUBHI ARORA
Shubhi Arora 4
ACKNOWLEDGEMENT
Small words move with ease where big words stand still. And smaller are the echoes
of my words that go to offer a string of thoughtful and thankful notes to the helping
hands that have steered clear my journey to the completion of this study paper.
Preparing a project of this nature is a tedious task and I was fortunate enough to get
support from a large number of persons to whom I shall always remain grateful.
First and the foremost I am grateful to the Almighty for everything and then I convey
my heartfelt thanks to Mr. Ajay Singh(Regional head) Edelweiss Broking Limited,
Lucknow for giving me guidance, help, support, space to conduct my project work
and for their enormous blessings.
I am extremely grateful to Dr. Anant Kr. Srivastava, Head of Department-FMS, Ms.

Priyanka Khandelwal, Assistant Professor - FMS (Project Guide), and all the faculty
member of the department for providing me an opportunity and exposure to the
industrial culture and working which helped me in learning and acquiring the real-life
insights about the corporate working culture and procedures.
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EXECUTIVE SUMMARY
Edelweiss is one of the leading names in the field of financial services with relation to
stock markets and related financial services. Edelweiss has a variety of financial
products to cater to the need of the customers. Edelweiss is a research driven company
which prides on the research that it provides to its client for safe investment in the
stock markets. Before entering into retail Edelweiss used to provide research to
different companies working in this field. Edelweiss is relatively new in the market as
compared its competitors but is rapidly making progress and catching up with them.
The main area that Edelweiss gets most of its revenue is through its advisory services
in the area of Merger and Accusation.
India is one of the fastest growing economies in the world and there is lots of potential
to grown in the market. The Indian market is largely untapped as only a small section
of the population invests in the stock market. There is very little awareness of the
stock market among the population. People have a negative perception about the stock
market and the stigma attached to it.
My main aim during the internship was to convince people to invest in the stock
market and answer all there queries and take them into confidence. My job was to
generate business by opening De-mats accounts for the company and generating leads
for them.
I did a variety of activity to generate business for the company through tele calling,
market visits, setting up canopy, corporate activity. During this various activities my
job was to interact with people provide them with knowledge about investment
opportunities in the stock market which would earn them handsome returns.
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I faced a number of difficulties during my internship period but was able to overcome
them through my knowledge and guidance of my seniors. I also learned a great deal
about how to sell a product and convince people to buy it by solving all there queries.
I also learned a great deal about the stock market and how it works. I also learned a
great deal about the stock market and its various aspects, the way it functions and how
to make investments.
The data in this project report is primary data base and after collecting and analyzing
the data I have given various suggestions to the company to make little changes to
capture or tap the untapped market though it is a NO.1 Security Company in India.
I have learned about all the elements of the stock market like - Equity, Derivatives,
and Mutual funds.
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TABLE OF CONTENT
PART –A
Chapter Subject Page Number

1 Genesis of the Organization 10-25
2 Organizational structure 26-27
3 Functional Areas 28
4 Products/Services 29-37
5 Marketing Strategies 38-44
PART- B
Chapter Subject Page Number

1 Introduction, Scope and Objectives 46-89
2 Research Methodology 90
3 Data analysis & interpretation 91-104
4 Finding, Recommendations 105-108
Bibliography 109
Annexure 111-120
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PART-A
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CHATPER-1
GENESIS OF THE ORGANIZATION
ABOUT THE ORGANIZATION
Edelweiss Capital was incorporated on November 21, 1995 as a public limited
company. The company received its certificate for commencement of business on
January 16, 1996. The company commenced investment banking activities and
registered with SEBI as a ‘Category I Merchant Banker’ (as defined under the SEBI
(Merchant Bankers) Rules, 1992) and thereafter as a ‘Portfolio Manager’ (as defined
under the SEBI (Portfolio Managers) Rules, 1993) and as an ‘underwriter’ under the
SEBI (Underwriting) Regulations, 1993. The company entered the business of
securities broking in the year 2002 by acquisition of Rooshnil Securities Private,
which later changed to Edelweiss Securities and is presently known as Edelweiss
Securities.
The year 2004 witnessed the foray of the company into the businesses of insurance
advisory as well as commodities broking and trading. The business of insurance
advisory is carried through the subsidiary, Edelweiss Insurance Brokers. The
subsidiary, ECAL Advisors carries on the business of commodities broking and
trading. The company also has its presence in non–banking financial activities through
its subsidiaries, Cross border Investments (acquired in the year 2000) and ECL
Finance (incorporated in the year 2005) which are NBFC’s. Edelweiss Real Estate
Advisors, which was previously the company’s subsidiary and its subsidiary
Edelweiss Trustee Services, were incorporated in the year 2006, for launching the
company’s first real estate fund which was registered with the SEBI as a ‘Venture
Capital Fund’ (as defined under the SEBI (Venture Capital Funds) Regulations, 1996).
The company raised funds through private equity from Connect Capital Holdings in
the year 2000. Greater Pacific Capital (GPC) concluded a strategic investment in the
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company in October 2005. Apart from fresh Investment in the company, GPC also
bought out Connect Capital Holdings’ stake in the company, thereby taking its equity
stake to 20%. The company also attracted capital from Galleon Diversified Fund,
HeliconiaPte (which is currently a wholly owned subsidiary of GIC (Ventures) Pte
held through a wholly owned subsidiary Lathe Investment Pte), BIH SA and Shuaa
Capital in 2006. Recently,
Investment in the company was made by Lehman Brothers Netherlands Horizons BV
and Galleon Special Opportunities Master Fund Limited – Galleon Crossover
Segregated Portfolio. The company does not have any strategic or financial partners.
The company today is a diversified financial services company in India, providing
investment banking, institutional equities, private client broking, asset management
and investment advisory services, wealth management, insurance broking and
wholesale financing services to corporate, institutional and high net worth individual
clients. The company is headquartered in Nariman Point, Mumbai and further operates
from another 43 offices in 21 Indian cities.
Since its commencement of business in 1996, the company has grown from a boutique
investment bank into a diversified Indian financial services company organized under
agency and capital business lines and operate through the company and its ten
subsidiaries. Its agency business lines include investment banking, institutional
equities, private client broking, asset management and
investment advisory services, wealth management and insurance broking; while
capital business lines includes wholesale financing services and its internal treasury
operations.
The edelweiss group is a conglomerate of 44 entities including 39 subsidiaries and 4
associate companies (september‟09), engaged in the business of providing financial
services, and primarily linked to the capital markets. Edelweiss capital limited
(www.edelcap.com), incorporated in 1995, today has emerged as one of India’s
leading integrated financial services conglomerates. The edelweiss group offers one of
the largest ranges of products and services spanning varied asset classes and
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diversified consumer segments. The group’s product offerings are broadly divided
into investment banking, brokerage services, asset management and financing. The
company’s research driven approach and consistent ability to capitalize on emerging
market trends has enabled it to foster strong relationships across corporate,
institutional and high net worth investor’s clients. Edelweiss capital limited now
employs about 1200 employees, leveraging a strong partnership culture and unique
model of employee ownership. It is a listed company since December 2013 under the
symbols NSE: edelweiss, BSE: 532922 and Bloomberg: edel.in.
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HISTORY OF EDELWEISS
Edelweiss Capital Limited (ECL) was conceived as a public limited company on 11th
November 1995. Now the company is one of India's fastest growing integrated
investment banking companies. The Group's services include investment banking,
institutional equities, private client broking, and asset management, wealth
management, insurance broking, wholesale financing and mutual funds. ECL has built
strong corporate, institutional and investor relationships backed by a research-driven
approach and a proven ability to capitalize on emerging market trends. The Company
had received its certificate for commencement of business on 16th January of the year
1996. As at March of the year 2000, ECL had acquired Cross border Investments
Private Limited and it became as subsidiary. The Company obtained the Futures &
Options license in the year 2001. Edelweiss Securities Limited formerly known as
Rossini Securities Private Limited was acquired in July of the year 2002; this also
converted as subsidiary of the company. In the same year of 2002, the Cross border
Investments Private Limited was registered as a Non-Banking Financial Company.
The year 2004 witnessed the foray of the company into the businesses of commodity
broking and in the year 2005 entered into insurance advisory business. ECL Finance
Limited was incorporated in the year 2005 under the control of the company. During
the year 2006, the company made NBFC registration of ECL Finance Limited and
managed the first Qualified Institutional Placement under the new regulatory
framework in India. Edelweiss Real Estate Advisors Private Limited was also
incorporated in the identical year of 2006 and the Edelcap Securities and Transaction
Services Private Limited which was earlier Tiffin Investments Private Limited were
acquired in December of the same year 2006. The Initial Public Offering of the
company was successfully issued in the year 2007 with the tune of 691.86 crore.
During the year same year 2007, ECL had obtained the Clearing Member License. As
of May 2008, the company had received final regulatory approval from the Securities
& Exchange Board of India (SEBI) to start its mutual fund business. Edelweiss Liquid
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Fund & Edelweiss Liquid plus Fund was launched through its asset management
company in September of the year 2008.The Edelweiss Group is one of India's leading
diversified financial services company providing a broad range of financial products
and services to a substantial and diversified client base that includes corporations,
institutions and individuals. Edelweiss's products and services span multiple asset
classes and consumer segments across domestic and global geographies. Its businesses
are broadly divided into Credit Business (Wholesale Credit comprises of Structured
Collateralized Credit to Corporates, Real Estate finance and Distressed Assets Credit
Retail Credit comprises of housing finance, loan against property, LAS, SME and
Agri Finance, and Rural Finance), Non-Credit Business (Capital Markets, Wealth
Management, Asset Management and Agri Services) and Life Insurance. The Balance
Sheet Management Unit operations manage the liquidity and Balance Sheet.
Edelweiss has an asset base of over INR 32,000 crore with revenue of INR 5,316
crore and net profit of INR 414 crore for FY16. Its consistent performance is
evidenced by a PAT (excluding insurance) CAGR of 38% over the last four years.
The group’s research driven approach and proven history of innovation has enabled it
to foster strong relationships across all client segments. The group has sizeable
presence in large retail segment through its businesses such as Life Insurance,
Housing Finance, Mutual Fund and Retail Financial Markets. It serves its 887,000
strong client base through 6,227 employees based out of 237 offices (including nine
international offices) in 122 cities. Together with over 4,500 strong networks of Sub-
Brokers and Authorized Persons, Edelweiss group has presence across all major cities
in India.
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ORIGIN, VISION & MISSION
 EDELWEISS FINANCIAL SERVICES LIMITED is a listed company

registered on 21/11/1995. The company has an authorized capital of Rs
1,25,00,00,000 and paid-up capital of Rs 81, 29, 09,293.
 Its registered office is situated at Edelweiss House, off. C.s.t Road, Kalina,
Mumbai, Maharashtra, India - 400098.
 The status of company in the records of Registrar is active which means that it
is actively doing all its filing with the Registrar.
 Company has currently 14 director and falls under the jurisdiction of Registrar
of Company-Mumbai.
A FOUNDATION OF VALUES: THE EDELWEISS

GUIDING PRINCIPLES
We will be a Thinking Organization

We will focus on the Long Term
We will be fair to our clients, our employees & all stakeholders
Our Financial Capital is a critical resource for growth
We will focus on Growth
Our Reputation is more important than any financial reward
We will respect Risk
We will take care of our People
We will operate as a Partnership, internally and externally
We will Obey and Comply with the rules of the land
VISION
Our vision is to build a strong, efficient and high-impact social sector for a better India
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MISSION
Our mission is to leverage the capacity and capitals of the for-profit world to equip
and enable the social sector achieve the greatest impact of the marginalized
communities living in India.
BUSINESS PROFILE
INVESTMENT BANKING
 Overview-Our Investment Banking business is dedicated to providing
corporations, entrepreneurs and investors, the highest quality independent financial
advice and transaction execution. Our professionals offer a full range of services
and transaction expertise, including private placements of equity, capital raising
services in public markets, mezzanine and convertible debt, mergers and
acquisition and restructuring advisory services. We have a track record of
successfully closing more than 100 transactions to date.
 Offerings
1) Private Equity Advisory - We have been a leading Private Equity advisor

for over a decade and have developed a strong expertise across industries which
enable us to recognize emerging industry themes and position transactions within
the context.
2) Structured Finance Advisory - Over the years, we have built up

significant expertise in structuring appropriate financing solutions for client
specific situations and identifying and placing the transaction with institutional
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investors. Our portfolio of solutions comprises the following Promoters Funding

and Acquisition Financing.
3) Mergers and Acquisitions Advisory - Edelweiss’ M&A team provides

insights into how companies can grow and enhance their value. The M&A team
are engaged in turnkey transaction management and advise a diverse range of
clients in medium to large transactions. Our key strengths include independent
advice, deep sector knowledge backed by professionals with a range of training
and experience that spans across multiple cross-border deals and our relationships
with large corporate.
4) Real Estate Advisory - Our advisory solutions are primarily focused on

capital rising and cover the optimal financing mix, project valuation, investment
structuring and accomplishing capital raising at either the enterprise level or the
asset level. We manage Real Estate IPOs, QIPs, advise enterprise level private
equity financings, and enterprise level mezzanine financing and structured debt.
We have completed over $ 700 million in capital rising in the last 18 months
across multiple formats.
5) Equity Capital Markets - We are in the vanguard of equity capital markets

having brought to the market a large number of successful and path breaking
transactions. We advise leading Indian companies, banks, institutions and
businesses which are seeking to mobilize capital from investors in India and
overseas. Within the practice, we provide opportunities for clients to raise funds
through the following – Initial Public Offering (IPOs) Follow-on Public
Offerings(POs) Qualified Institutional Placements(QIP) Rights Issues Preferential
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Allotments Foreign Currency Convertible Bonds(FCCBs) Global Depository

Receipts(GDRs)
6) Infrastructure Advisory - A critical ingredient for sustainable

development in India is the pressing need for Infrastructure creation on a
commercially viable basis. This signifies immense Opportunities and challenges
for the sector. Recognizing this, Edelweiss’ new Infrastructure practice has been
formed to provide innovative solutions tailored to the unique financing and
advisory requirements of Indian infrastructure projects and developers. Our team
has a dedicated focus on the infrastructure sector, with considerable experience, a
deep understanding and a vast network of key relationships. We provide
Infrastructure project companies and developers the full range of capital and
advisory services.
7) Debt Restructuring Advisory - At Edelweiss we have a very competent

team offering comprehensive debt restructuring solutions, both under the formal
Corporate Debt Restructuring (CDR) mechanism as well as negotiations with
lender/consortium of lenders. Our team of senior ex-bankers and restructuring
specialists have unparalleled experience of restructuring debts worth over Rs.
75,000 crores, and an ability to provide complete solutions and support to the
Corporate.
INSTITUTIONAL EQUITIES
Edelweiss Capital’s Institutional Equities Business (IE) has become one of the top five
domestic brokerage houses and top three derivatives desks. It is the only brokerage on
the Street with a quant desk that provides a wide product range, servicing all investor
categories. The innovative mindset, unparalleled research, agile sales teams, and
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intensive execution systems have enabled us to relentlessly service our clients in
different ways. It caters to a wide client comprising leading domestic and international
institutional investors, including Pension Funds, Hedge Funds, Mutual Funds,
insurance companies, and banks.
ASSET MANAGEMENT
 Overview- Edelweiss Asset Management offers a range of investment
products and advisory services across the risk return spectrum to individual and
institutional investors. Our close focus on client requirements is our inspiration
in designing products which offer the best opportunity for asset growth with a
constant focus on risk and preservation of capital.
 Offerings-
1) Portfolio Management - Edelweiss offers the discerning investor an

opportunity to access its asset management expertise through its portfolio
management service (PMS). The basic objective of this product is to provide
unbiased investment management strategy based on rigorous fundamental
analysis while taking cognizance of market conditions and movements.
2) Mutual Funds - Edelweiss Asset Management Limited follows a research
based and process oriented investment approach. Edelweiss Asset Management
Limited is committed to observe the highest ethical standards while deploying
investors’ monies, servicing investors and dealing with business partners.
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WEALTH MANAGEMENT
 Overview- It is a specialized profession where our experts combine their
efforts to meet the wealth planning, investment, and financial management needs of
individuals, families, family offices, or corporate. Edelweiss Wealth Management
takes one step closer to you, by providing an "all-in-one approach”. Advice on asset
allocation and thereby creating customized financial solutions for HNWIs, NRIs,
Trusts and Corporate. We offer advisory services on Structured Products, Portfolio
Management, Mutual Funds, Insurance, Derivative Strategies, Direct Equity, IPOs,
Real Estate Funds and Art Funds.
PRIVATE CLIENT BROKERAGE
 Overview- The Private Client Services Group at Edelweiss is focused on
providing products, strategies and services to High Net worth Individuals and
Corporate Clients. We have geographic reach through our Branches, Channel
Partners & Investment Consultants in over 19 locations in India. The PCG team
has highly trained equity professionals, who act as your Equity Advisor. Our
ESL Equity Advisor proactively helps you take informed investment decisions
and build a healthy portfolio. We draw on our strong presence and industry
leadership to develop a portfolio of offerings designed to serve the spectrum of
financial needs. Our main objective is to provide clients with all the tools and
services.
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 Offerings-
1) Cash Equity - Providing research based advice on select stocks from across
sectors to meet client’s investment requirement ranging from positional trading to
long term investment goals. For our clients I provide ongoing portfolio
consultation with a dedicated relationship manager as one point contact for all day-
to-day execution of trades and other service requirements such as advisory on
investments.
2) Derivatives- Edelweiss being a pioneer in Quantitative & Alternative Research,

I leverage this strength for our derivatives strategies focused towards short-term /
medium investments of clients in PCG. Derivative Strategy group, through its
dedicated research team provides seamless execution for its clients with trading
view. The stock ideas generated are enhanced by combination of technical view
and derivative strategy along with the statistical data. Based on the Quantitative
Research products such as Pair Trades & Alpha Trades are also initiated whenever
I identify the opportunity.
3) Financing - offer various products and services to individuals and corporates

with a close focus on client requirements while designing our products. Over a
period of time I have been offering short term loans against securities and/or to
buy new securities. I also provide finance for investment in primary market issues.
I help promoters by financing against their shareholding to meet their business
requirements, expansion of businesses and diversification of the lines of business. I
possess expertise in financing short and long term loan facility, risk analysis,
transfer and assessment besides a broad spectrum of services.
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FINANCING
 Overview- Edelweiss Housing Finance Limited (EHFL) is a Housing
Finance Company incorporated under the aegis of the National Housing
Bank (NHB). It is part of the Edelweiss Group of Companies. EHFL has an
array of loan solutions which can be tailored to your requirements. If you’re
looking for a Home Loan, do apply to EHFL for the highest loan amount in
the shortest time.
 Offerings-
 Home Loans
 Loan against property
 25 year loan - The Newly launched 25 year Home loans help you purchase a
property and repay in lower / easily manageable installments
 Refinancing - If you have already purchased a property and used your own funds
or borrowed from friends or relatives for the same, I could re-finance the same.
 Balance transfer & top up - If you already have a Home loan or a Loan against
Property running with any Bank or other financier, you could move the same to
EHFL a better rate of interest and a longer tenor, giving you the advantage of a
lower EMI. You can also avail of an additional ("Top-Up") loan against same
property.
LIFE INSURANCE
Edelweiss Tokio life Insurance is the first of the new generation Insurance companies
in India as a joint venture with Tokio Marine, one of the fastest growing life Insurance
companies in Japan. Capitalizing on the immense growth potential in the life
insurance sectors that the country offers, Edelweiss Tokio life insurance has set up
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operations in India with a startup capital of Rs. 550 crores – highest for any Indian
insurer, dedicated to building a long term sustainable business focused on consumer
centricity.
The business commenced operations in July ‟11 with the launch of diverse products
after receiving final approvals from IRDA. The products include term plan, savings
options, credit protection and ULIP funds. It has expanded operations by opening 22
offices in 15 centers and has appointed over 530 Personal Financial Advisors (PFAs).
It plans to expand its presence and to more centers going forward.
Life Insurance market in India currently ranks 136th in the world in penetration and is
expected to emerge as one of the top three markets by 2020. This business, therefore,
presents exciting opportunities for long-term growth going forward.
HOUSING FINANCE
Edelweiss has taken a major step in diversifying its asset class in the credit book
through the launch of its housing finance business in H2FY11. The housing finance
subsidiary initially launched its business in Mumbai and has expanded it to include the
National Capital Region, Ahmedabad, Bengaluru, Pune and Hyderabad.
Considering that it is the aspirations of all Indians to own a home, this business
represents an exciting opportunity reinforcing Edelweiss‟ intent to cover a larger retail
footprint. The business offers home loans, loans against property and lease rental
discounting.
CREDIT
With a deep knowledge and understanding of capital markets backed by strong

origination capabilities, the Company’s primary offering in the financing business
includes collateralized loan products such as sponsor funding, loans against shares,
IPO financing, loans against ESOPs and margin funding etc. The sponsors of midto-
large corporates constitute its key clientele. Its prudent financing norms, strong risk
management and a conservative margin of safety (typical collateral cover ranges from
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2x to 3x) ensures low non–performing loans. Edelweiss continues to work on new

product offerings around other asset classes.
RETAIL BROKING & DISTRIBUTION
Retail Broking and Distribution are the new initiatives of the Group under its Retail
Business strategy. The organic Retail broking business is through the online portal
www.edelweiss.in and provides advisory and research based broking services
supported by high quality execution platform and best in class reporting. It currently
has over 121,000 clients under the online broking. Edelweiss has also completed the
acquisition of Anagram Capital Limited in
July ‟10 now renamed as Edelweiss Financial Advisors Ltd. The offline broking
model has around 243,000 clients. Retail broking business has also expanded its
presence through a strong network of over 4500 sub-brokers and Authorized Persons
in over580 cities.
Distribution business focuses on giving advice and analyzing the best financial
product options available in the market. It involves the distribution of the full range of
third party financial products and services including IPO syndication for the retail
customer. For FY11 Edelweiss is ranked # 1 in HNI category and # 3 in Retail
category by amount mobilized in IPOs. It was also ranked # 1 in both HNI and Retail
categories in the recent IPO of MOIL Ltd by amount procured. Overall, it was second
largest mobilizer of IPO subscriptions in all categories taken together (non-ASBA) in
FY11 (Source: Prime Database).
TREASURY
The Company’s internal treasury operations manage its excess capital funds. The
company does it by investing its capital in what it believes to be low–risk strategies,
maintaining positions which it can liquidate economically within a few days. The
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company structures its treasury investments to maintain sufficient liquidity in its

portfolio to support the capital needs of its other businesses.
WHOLESALE FINANCING
In order to cater liquidity requirements of clients, it offers wide range products and
services to individuals and corporates.
HNI BROKING
Edelweiss offers dedicated brokerage services to high net worth

individuals with a strong emphasis on building long-term relationships
with clients. Product offerings include specialized trading execution for
active trading clients and structured products like equity linked capital
protection products.
RETAIL INITIATIVES
Retail Broking and distribution are the new initiatives of the Group under its Retail
Business strategy. An online retail broking portal www.edelweiss.in is operational and
provides advisory and research based broking services. Distribution business focuses
on giving advice and analyzing the best financial product options available in the
market. It involves the distribution of the full range of third party financial products
and services including IPO syndication for the retail customer. For the half year ended
September 30, 2015 Edelweiss is ranked #2 in NIB (non- institutional bidder)
category and is ranked 4th in Retail category by the number of applications in IPOs as
per Prime Database. Edelweiss also secured 1st rank in NIB category both in NHPC
and OIL India IPOs by the number of applications.
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WEALTH ADVISORY & INVESTMENT SERVICES

The Primary focus is on understanding each client's profile including life style, risk
appetite, growth expectations, and current financial position and income requirements
to create comprehensive and tailored investment strategies. The broad range of
offerings includes asset allocation advisory to Structured Products, Portfolio
Management, Mutual Funds, Insurance, Derivatives Strategies, Direct Equity, Private
Equity, and Real Estate Funds etc.
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CHAPTER -2
ORGANIZATION STRUCTURE
DIRECTORS & KEY PERSONS
DIN/DPIN/PAN Director Name Appointment Date Designation
00008322 RASHESH CHANDRAKANT 21/11/1995 Managing Director

SHAH
00237366 RUJAN HARCHAND PANJWANI 24/06/2013 Whole-time

Director
00009438 HIMANSHU NALIN KAJI 01/11/2011 Whole-time

Director
00008509 VENKATCHALAM ARAKONI 20/02/1996 Whole-time

RAMASWAMY Director
06990345 BISWAMOHAN MAHAPATRA 26/03/2015 Director
00274831 VIDYA RASHESH SHAH 01/08/2014 Director
01590108 KUNNASAGARAN CHINNIAH 01/10/2013 Director
02282617 NAVTEJ SINGH NANDRA 15/05/2013 Director
00113473 SUNIL MITRA 07/12/2011 Director
03511635 SANJIV MISRA 16/05/2011 Director
00153675 BERJIS MINOO DESAI 18/11/2009 Director
00499442 PUDUGRAMAM 09/08/2007 Director

NARAYANASWAMY
VENKATACHALAM
AADPR6519A SUBRAMANIAN 17/05/2014 CFO

RANGANATHAN
AADPB8630N B RENGANATHAN 22/07/2008 Secretary
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CORPORATE SOCIAL RESPONSIBILITY
At Edelweiss, Corporate Social Responsibility is a part of its DNA and it focuses on

initiatives that help to build a better, more equitable and sustainable society. For
Edelweiss, CSR means giving back to the society – beyond the call of the business.
EdelGive Foundation, the CSR wing of Edelweiss, has accordingly been formed to
create an effective institutional platform to provide structure and direction
to the philanthropic activities of Edelweiss, its employees, its clients and its
associates. Its primary focus is on creating educational, employment and sustainable
livelihood opportunities for the underprivileged and it brings an “institutional banking
and venture capital” rationale and thinking to the social sector. Edelweiss leverages its
strengths - the ability and expertise to act as a bridge between providers and
consumers of capital - to achieve the objective of addressing the primary needs of the
social sector.
Edelweiss Social Innovation Honors is a CSR initiative to encourage NGOs who are
working to improve the status of the girl child in the areas of health, education and
employability. The Social Innovation Honors for the year 2010-11 received
overwhelming response and 5 NGO were selected for the award for their innovative
work to empower women. The process for finalizing the Honors for 2011-12 is
underway and will be completed in Q4FY12.
Edelweiss has been rated among the top 5% of companies in terms of CSR by
Karmyog.com.
Shubhi Arora 28
CHAPTER-3
FUNCTIONAL AREAS
SUBSIDIARIES OF EDELWEISS
Shubhi Arora 29
CHAPTER 4:
PRODUCT & SERVICES
FUNDAMENTAL PRODUCT BOUQUET
SALIENT FEATURES:-
 Stock selection is carried out on the basis of fundamental analysis of

the company and the sector.
 Top-down approach of stock selection and specific elimination
criteria are followed to identify the right sector or stock.
 Event-based products are designed to capitalize on opportunities in
the foreseeable future.
RISK MANAGEMENT
 Investment in Equity market / Securities is subject to market risks.

The investment decisions are to be made by the client with the
help of professional advisors after conducting the proper
investigation for the same.
THE FUNDAMENTAL PRODUCT BOUQUET INCLUDES:
INDICATIVE
SR.NO PRODUCT DESCRIPTION RISK
POTENTIAL UPSIDE*
STOCK COVERAGE
1 Fundamental Medium 20% - 25% per annum
/CUB Series
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2 Mid Cap Marvels Fundamental Medium 20% - 25% per annum
3 TOP PICKS Fundamental Medium 15% - 20% per annum
4 EDEL STAR Fundamental Medium 8% - 12% per call
5 Sectoral Ideas Fundamental Medium 5% - 8% per call
THE EDEL STAR INCLUDES:
Indicative
Recommendation Maximum Time
Asset Class Product Type Risk Potential
Style Frame
Upside*
open calls
8% - 12% per
Equity Fundamental Long only Medium 6 - 7 calls 3 months
call
THE SECTORAL IDEAS INCLUDES:
Indicative
Asset Recommendation Maximum Time
Product Type Risk Potential
Class Style Frame
Upside*
open calls
5% - 8%
Equity Fundamental Long & Short Medium 3 - 4 calls 1 month
per call
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THE STOCK COVERAGE INCLUDES:
Indicative
Asset Recommendation Maximum Time
Product Type Risk Potential
Class Style Frame
Upside* open calls
5% - 8% per
Equity Fundamental Long & Short Medium 3 - 4 calls 1 month
call
THE TOP PICKS INCLUDES:
Asset Recommendati Indicative Potential Maximum

Product Type Risk Time Frame
Class on Style Upside*
open calls
Mediu
Equity Fundamental Long & Short 5% - 8% per call 3 - 4 calls 1 month
m
THE MID CAP MARVELS INCLUDES:
Asset Recommendation Indicative Potential Maximum Time

Product Type Risk
Class Style Upside* open calls Frame
Equity Fundamental Long & Short Medium 5% - 8% per call 3 - 4 calls 1 month
TECHNICAL PRODUCT BOUQUET:
 Technical products are structured to capture opportunities arising

out of demand-supply imbalances of specific stocks/indices.
 Technical parameters such as price, volume, chart patterns,
oscillators, etc. are used to spot trends on individual
stocks/indices.
 Stocks are selected based on confirmation of near future trend.
Shubhi Arora 32
 Products are designed with respect to specific time frames and

risk-reward.
THE TECHNICAL PRODUCT BOUQUET INCLUDES:
INDICATIVE
SR.NO PRODUCT DESCRIPTION RISK POTENTIAL
UPSIDE*
1 INTRADAY CALLS Technical 0.80% 0.8% - 1.5% per call
CARRY TRADE BUY

2 Technical 0.80% 0.8% - 1.5% per call
/SELL
3 TRADING CALLS Technical 4% - 5% 7% - 15% per call
4 T+5 Technical 3% - 4% 6% -8% per call
EQUITY: INTRADAY CALLS:
Asset Product Recommendation Indicative Maximum Time

Risk Frequency
Class Type Style Potential Upside* open calls Frame
0.8% - 1.5%
Equity Technical Long & Short 0.8% 5 110 per month Intraday
per call
EQUITY: CARRY TRADE BUY/SELL:
Indicative
Product Recommendation Maximum Time
Asset Class Risk Potential Frequency
Type Style open calls Frame
Upside*
0.8% - 1.5% 40 per
Equity Technical Long & Short 0.8% 5 1 day
per call month
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EQUITY: TRADING CALLS:
Indicative
Recommendation Maximum Time
Asset Class Product Type Risk Potential Frequency
Style open calls Frame
Upside*
4% - 7% - 15% per
Equity Technical Long & Short 10 50 per month 2 weeks
5% call
EQUITY: T+5 CALLS:
Product Recommendati Indicative Potential Maximum Time

Asset Class Risk Frequency
Type on Style Upside* open calls Frame
3% - 20 per 5 Day
Equity Technical Long & Short 6% - 8% per call 5
4% month s
DERIVATIVE PRODUCT BOUQUET
 Derivative products are structured to capture opportunities in the

leveraged segment.
 Derivative parameters such as open interest, option premium and IVs
are used to identify the appropriate stock/index.
 Derivative calls are designed for various time frames that may
include index/stock option strategies.
INDICATIVE POTENTIAL
UPSIDE*
INDEX 15 pts - 25
1 Derivative 30pts - 50 pts per call
CALLS pts
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AOTA 5% - 25% per call on Amount

2. Derivative 5% - 10%
HIGH RISK deployed
AOTA 5% - 10% per call on Amount

3. Derivative 5%
LOW RISK deployed
PAIR
4. Derivative 5% - 7% 10% - 15% per call
STRATEGY
THE DERIVATIVE PRODUCT BOUQUET INCLUDES:
DERIVATIVE: INDEX CALLS:
Indicative
Asset Product Recommendation Maximum Time
Risk Potential Frequency
Class Type Style open calls Frame
Upside*
15 pts - 25 30 pts - 50 pts per 40 per
Equity Derivative Long & Short 2 1 - 3 days
pts call month
DERIVATIVE: AOTA (HIGH RISK):
Indicative Maximu
Product Recommendati
Asset Class Risk Potential m Frequency Time Frame
Type on Style
Upside* open calls
5% - 5% - 25% per 15 per 7 days to a
Equity Derivative Long & Short 4
10% call* month month
DERIVATIVE: AOTA (LOW RISK):
Indicative
Upside*
5% - 10% per 10 per 7 days to a
Equity Derivative Long & Short 5% 4
call* month month
Shubhi Arora 35
DERIVATIVE: PAIR STRATEGY:
Product Recommendation Indicative Maximum Time

Asset Class Risk Frequency
Type Style Potential Upside* open calls Frame
3% - 2 - 4 per
Equity Derivative Long & Short 5% - 6% per call 2 2 - 3 days
4% month
CURRENCY PRODUCTS
 Currency products are structured to capture opportunities in the

currency derivatives segment.
 Currency products aim to offer the investor a favorable risk-

reward ratio based on different currencies:
 Global trends
 Domestic demand-supply matrix
 Technical parameters
THE CURRENCY PRODUCT BOUQUET INCLUDES:
SR.NO PRODUCT DESCRIPTIION RISK INDICATIVE POTENTIAL UPSIDE*
EDEL
1. Currency 6 - 8 bps 12 - 16 bps per call
EXPRESS
EDEL
2. Currency 30 bps 50 bps per call
MAXIMA
Shubhi Arora 36
CURRENCY: EDEL EXPRESS:
Indicative
Upside*
Edel 6 -8 12 - 16 bps per
Currency Long & Short 5 25 per month Intraday
Express bps call
CURRENCY: EDEL MAXIMA:
Indicative
Upside*
Edel 4 per 6 - 10
Currency Long & Short 30 bps 50 bps per call 4
Maxima month days
COMMODITY PRODUCT BOUQUET
 Commodity products are structured to capture opportunities in

the commodity segment
 Commodity products aim to offer different products across
multiple commodities and for varying investor profiles. The
following parameters are taken into account for idea
generation:
 Global trends
 Domestic demand-supply matrix
 Technical parameters
INDICATIVE POTENTIAL
UPSIDE*
Shubhi Arora 37
EDEL
1. Commodity 0.5%-1% 1%-3% per call
WHIZZ
EDEL
2. Commodity 0.5%-2% 1%-5% per call
SPRINT
3. EDEL ACE Commodity 1%-3% 2%-7% per call
COMMODITY: EDEL WHIZZ:
Indicative
Upside*
0.5% - 1% - 3% per 200 calls per
Commodity Edel Whizz Long & Short 5 Intraday
1% call month
COMMODITY: EDEL SPRINT:
Indicative
Upside*
Edel 0.5% - 1% - 5% per 1-3
Commodity Long & Short 2 15-20 per month
Sprint 2% call days
Shubhi Arora 38
CHAPTER-5
MARKETING STRATEGIES
Profitability Scalability Governance
Long term Value Creation

Management
Sustainability
Quality
Shubhi Arora 39
AWARDS & RECOGNITIONS
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Shubhi Arora 43
SWOT ANALYSIS
 Strengths
1. Wide range of financial products and focus on premium trades
2. Emphasis is on efficient execution of trades
3. Strong private equity operations
4. Have over 260 offices in over 135 cities in across India
5. Financial products and services such as
i. Wealth Management,
ii. Broking & Distribution,
iii. Commodity Broking,
iv. Portfolio Management Services,
v. Institutional Equities,
vi. Private Equity,
vii. Investment Banking Service.
6.Skilled workforce.
 Weaknesses
1. Less penetration in developing cities.
2. Lack of advertising causes low awareness amongst investors
Opportunities .
3. Growing rural market.
4. Earning Urban Youth looking for investments.
5. Taxes.
 Opportunities
1. Growing Rural Market
2. Earning Urban Youth looking for Investments
3.New Markets
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4. Growth rates and profitability
 Threats
1.Stringent Economic measures by Government and RBI.
2. Entry of foreign finance firms in Indian Market.
3. Price Changes.
4. Rising Cost of Raw Materials.
Shubhi Arora 45
PART -B
Shubhi Arora 46
CHAPTER-1
INTRODUCTION OF THE TOPIC
The Indian MF industry has Rs5.67 lakh crore of assets under
management. As per data released by Association of Mutual Funds in India,
the asset base of all mutual fund combined has risen by 7.32% in April, the
first month of the current fiscal. As of now, there are 33 fund houses in
the country including 16 joint ventures and 3 wholly owned foreign asset
managers.
According to a recent McKinsey report, the total AUM of the Indian mutual
fund industry could grow to $350-440 billion by 2012, expanding 33%
annually. While the revenue and profit (PAT) pools of Indian AMCs are pegged
at $542 million and $220 million respectively, it is at par with fund houses
in developed economies. Operating profits for AMCs in India, as a percentage
of average assets under management, were at 32 basis points in 2006-07,
while the number was 12 bps in UK, 17 bps in Germany and 18 bps in the US,
in the same time frame.
HISTORY OF MUTUAL FUND
The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank. The history of
mutual funds in India can be broadly divided into four distinct phases: -
First Phase – 1964-87
An Act of Parliament established Unit Trust of India (UTI) on 1963. It was set up by
the Reserve Bank of India and functioned under the Regulatory and administrative
Shubhi Arora 47
control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the
Industrial Development Bank of India (IDBI) took over the regulatory and
administrative control in place of RBI. The first scheme launched by UTI was Unit
Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under
management.
Second Phase – 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund
established in June 1987 followed by Can bank Mutual Fund (Dec 87), Punjab
National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of
India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund
in June 1989 while GIC had set up its mutual fund in December 1990. At the end of
1993, the mutual fund industry had assets under management of Rs.47,004crores.
Third Phase – 1993-2003 (Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the Indian mutual
fund industry, giving the Indian investors a wider choice of fund families.
Also, 1993 was the year in which the first Mutual Fund Regulations came into being,
under which all mutual funds, except UTI were to be registered and governed. The
erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private
sector mutual fund registered in July 1993.
Fourth Phase – since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit
Trust of India with assets under management of Rs.29,835 crores as at the end of
Shubhi Arora 48
January 2003, representing broadly, the assets of US 64 scheme, assured return and
certain other schemes. The Specified Undertaking of Unit Trust of India, functioning
under an administrator and under the rules framed by Government of India and does
not come under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76, 000crores
of assets under management and with the setting up of a UTI Mutual Fund,
conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking
place among different private sector funds, the mutual fund industry has entered its
current phase of consolidation and growth. As at the end of September, 2004, there
were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.
ECONOMIC ENVIRONMENT
GROWTH OF MUTUAL FUND INDUSTRY IN INDIA
While the Indian mutual fund industry has grown in size by about 320% from March,
1993 (Rs. 470 billion) to December, 2004 (Rs. 1505 billion) in terms of AUM, the
AUM of the sector excluding UTI has grown over 8 times from Rs. 152 billion in
March 1999 to $ 148 billion as at March 2008.Though India is a minor player in the
global mutual fund industry, its AUM as a proportion of the global AUM has steadily
increased and has doubled over its levels in 1999.
The growth rate of Indian mutual fund industry has been increasing for the last few
years. It was approximately 0.12% in the year of 1999 and it is noticed 0.25% in 2004
in terms of AUM as percentage of global AUM.
Shubhi Arora 49
SOME FACTS FOR THE GROWTH OF MUTUAL FUNDS IN INDIA
 100% growth in the last 6 years.

 Number of foreign AMC’s is in the queue to enter the Indian markets.
 Our saving rate is over 23%, highest in the world. Only channelizing these
savings in mutual funds sector is required.
 We have approximately 29 mutual funds which are much less than US having
more than 800. There is a big scope for expansion.
 Mutual fund can penetrate rural like the Indian insurance industry with simple
and limited products.
 SEBI allowing the MF's to launch commodity mutual funds.
 Emphasis on better corporate governance.
 Trying to curb the late trading practices.
 Introduction of Financial Planners who can provide need based advice.
RECENT TRENDS IN MUTUAL FUND INDUSTRY
The most important trend in the mutual fund industry is the aggressive expansion of
the foreign owned mutual fund companies and the decline of the companies floated by
the nationalized banks and smaller private sector players.
Many nationalized banks got into the mutual fund business in the early nineties and
got off to a start due to the stock market boom was prevailing. These banks did not
really understand the mutual fund business and they just viewed it as another kind of
banking activity. Few hired specialized staff and generally chose to transfer staff from
the parent organizations. The performance of most of the schemes floated by these
funds was not good. Some schemes had offered guaranteed returns and their parent
organizations had to bail out these AMCs by paying large amounts of money as a
difference between the guaranteed and actual returns. The service levels were also
Shubhi Arora 50
very bad. Most of these AMCs have not been able to retain staff, float new schemes
etc.
TECHNOLOGICAL ENVIRONMENT
IMPACT OF TECHNOLOGY
Mutual fund, during the last one decade brought out several innovations in their
products and is offering value added services to their investors. Some of the value
added services that are being offered are:
 Electronic fund transfer facility.

 Investment and re-purchase facility through internet.
 Added features like accident insurance cover, med claim etc.
 Holding the investment in electronic form, doing away with the traditional form
of unit certificates.
 Cheque writing facilities.
 Systematic withdrawal and deposit facility.
ONLINE MUTUAL FUND TRADING
The innovation the industry saw was in the field of distribution to make it more easily
accessible to an ever increasing number of investors across the country. For the first
time in India the mutual fund start using the automated trading, clearing and
settlement system of stock exchanges for sale and repurchase of open-ended de-
materialized mutual fund units.
Systematic Investment Plan (SIP) and Systematic Withdrawal Plan (SWP) were
options introduced which have come in very handy for the investor to maximize their
returns from their investments. SIP ensures that there is a regular investment that the
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investor makes on specified dates making his purchases to spread out reducing the
effect of the short term volatility of markets. SWP was designed to ensure that
investors who wanted a regular income or cash flow from their investments were able
to do so with a pre-defined automated form. Today the SW facility has come in handy
for the investors to reduce their taxes.
LEGAL AND POLITICAL ENVIRONMENT
ASSOCIATION OF MUTUAL FUNDS IN INDIA

(AMFI)
With the increase in mutual fund players in India, a need for mutual fund association
in India was generated to function as a non-profit organization. Association of Mutual
Funds in India (AMFI) was incorporated on 22nd August 1995.
AMFI is an apex body of all Asset Management Companies (AMC), which has been
registered with SEBI. Till date all the AMCs are that have launched mutual fund
schemes are its members. It functions under the supervision and guidelines of board of
directors. AMFI has brought down the Indian Mutual Fund Industry to a professional
and healthy market with ethical lines enhancing and maintaining standards. It follows
the principle of both protecting and promoting the interest of mutual funds as well as
their unit holders.
It has been a forum where mutual funds have been able to present their views, debate
and participate in creating their own regulatory framework. The association was
created originally as a body that would lobby with the regulator to ensure that the fund
viewpoint was heard. Today, it is usually the body that is consulted on matters long
before regulations are framed, and it often initiates many regulatory changes that
prevent malpractices that emerge from time to time.
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AMFI works through a number of committees, some of which are standing

committees to address areas where there is a need for constant vigil and improvements
and other which are adhoc committees constituted to address specific issues. These
committees consist of industry professionals from among the member mutual funds.
There is now some thought that AMFI should become a self-regulatory organization
since it has worked so effectively as an industry body.
OBJECTIVES
 To define and maintain high professional and ethical standards in all areas of
operation of mutual fund industry
 To recommend and promote best business practices and code of conduct to be

followed by members and others engaged in the activities of mutual fund and asset
management including agencies connected or involved in the field of capital
markets and financial services.
 To interact with the Securities and Exchange Board of India (SEBI) and to
represent to SEBI on all matters concerning the mutual fund industry.
 To represent to the Government, Reserve Bank of India and other bodies on all
matters relating to the Mutual Fund Industry.
 To develop a cadre of well-trained Agent distributors and to implement a

programme of training and certification for all intermediaries and other engaged in
the industry.
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 To undertake nationwide investor awareness programme so as to promote proper

understanding of the concept and working of mutual funds.
 To disseminate information on Mutual Fund Industry and to undertake studies and

research directly and/or in association with other bodies.
REGULATORY MEASURES BY SEBI
Like Banking & Insurance up to the nineties of the last century, Mutual Fund industry
in India was set up and functioned exclusively in the state monopoly represented by
the Unit Trust of India. This monopoly was diluted in the eighties by allowing
nationalized banks and insurance companies (LIC & GIC) to set up their institutions
under the Indian Trusts Act to transact mutual fund business, allowing the Indian
investor the option to choose between different service providers. Unit Trust was a
statutory corporation governed by its own incorporating act. There was no separate
regulatory authority up to the time SEBI was made a statutory authority in 1992. but it
was only in the year 1993, when a government took a policy decision to deregulate
Indian Economy from government control and to transform it market oriented, that the
industry was opened to competition from private and foreign players. By the year
2000 there came to be established in the market 34 mutual funds offerings a variety of
about 550 schemes.
SECURITIES AND EXCHANGE BOARD OF INDIA

(MUTUAL FUNDS) REGULATIONS, 1996
The fast growing industry is regulated by Securities and Exchange Board of India
(SEBI) since inception of SEBI as a statutory body. SEBI initially formulated
“SECURITIES AND EXCHANGE BOARD OF INDIA (MUTUAL FUNDS)
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REGULATIONS, 1993” providing detailed procedure for establishment, registration,

constitution, management of trustees, asset management company, about
schemes/products to be designed, about investment of funds collected, general
obligation of MFs, about inspection, audit etc. based on experience gained and
feedback received from the market SEBI revised the guidelines of 1993 and issued
fresh guidelines in 1996 titled “SECURITIES AND EXCHANGE BOARD OF
INDIA (MUTUAL FUNDS) REGULATIONS, 1996”. The said regulations as
amended from time to time are in force even today. The SEBI mutual fund regulations
contain ten chapters and twelve schedules. Chapters containing material subjects
relating to regulation and conduct of business by Mutual Funds.
CHARACTERISTICS OF MUTUAL FUNDS
 The ownership is in the hands of the investors who have pooled in their funds.
 It is managed by a team of investment professionals and other service

providers.
 The pool of funds is invested in a portfolio of marketable investments.
 The investors share is denominated by ‘units’ whose value is called as Net

Asset Value (NAV) which changes every day.
 The investment portfolio is created according to the stated investment

objectives of the fund.
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ADVANTAGES OF MUTUAL FUNDS
The advantages of mutual funds are given below: -
Portfolio Diversification
Mutual funds invest in a number of companies. This diversification reduces the risk
because it happens very rarely that all the stock’s decline at the same time and in the
same proportion. So this is the main advantage of mutual funds.
Professional Management
Mutual funds provide the services of experienced and skilled professionals, assisted
by investment research team that analysis the performance and prospects of
companies and select the suitable investments to achieve the objectives of the scheme.
Low Costs
Mutual funds are a relatively less expensive way to invest as compare to directly
investing in a capital markets because of less amount of brokerage and other fees.
Liquidity
This is the main advantage of mutual fund that is whenever an investor needs money
he can easily get redemption, which is not possible in most of other options of
investment. In open-ended schemes of mutual fund, the investor gets the money back
at net asset value and on the other hand in close-ended schemes the units can be sold
in a stock exchange at a prevailing market price.
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Transparency
In mutual fund, investors get full information of the value of their investment, the
proportion of money invested in each class of assets and the fund manager’s
investment strategy.
Flexibility
Flexibility is also the main advantage of mutual fund. Through this investors can
systematically invest or withdraw funds according to their needs and convenience like
regular investment plans, regular withdrawal plans, dividend reinvestment plans etc.
Convenient Administration
Investing in a mutual fund reduces paperwork and helps investors to avoid many
problems like bad deliveries, delayed payments and follow up with brokers and
companies. Mutual funds save time and make investing easy.
Affordability
Investors individually may lack sufficient funds to invest in high-grade stocks. A

mutual fund because of its large corpus allows even a small investor to take the
benefit of its investment strategy.
Well Regulated
All mutual funds are registered with SEBI and they function within the provisions of
strict regulations designed to protect the interest of investors. The operations of
mutual funds are regularly monitored by SEBI.
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DISADVANTAGES OF MUTUAL FUNDS
Mutual funds have their following drawbacks:
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 mutual fund runs
the risk of losing the 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 advisor, 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 you reinvest the money you made.
Management Risk
When you invest in mutual fund, you depend on fund 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 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.
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STRUCTURE OF MUTUAL FUND
There are many entities involved and the diagram below illustrates the structure of
mutual funds: -
SEBI
The regulation of mutual funds operating in India falls under the preview of authority
of the “Securities and Exchange Board of India” (SEBI). Any person proposing to
set up a mutual fund in India is required under the SEBI (Mutual Funds) Regulations,
1996 to be registered with the SEBI.
Sponsor
The sponsor should contribute at least 40% to the net worth of the AMC. However, if
any person holds 40% or more of the net worth of an AMC shall be deemed to be a
sponsor and will be required to fulfill the eligibility criteria in the Mutual Fund
Regulations. The sponsor or any of its directors or the principal officer employed by
the mutual fund should not be guilty of fraud or guilty of any economic offence.
Trustees
The mutual fund is required to have an independent Board of Trustees, i.e. two third
of the trustees should be independent persons who are not associated with the
sponsors in any manner. An AMC or any of its officers or employees is not eligible to
act as a trustee of any mutual fund. The trustees are responsible for - inter alia –
ensuring that the AMC has all its systems in place, all key personnel, auditors,
registrar etc. have been appointed prior to the launch of any scheme.
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Asset Management Company
The sponsors or the trustees are required to appoint an AMC to manage the assets of
the mutual fund. Under the mutual fund regulations, the applicant must satisfy certain
eligibility criteria in order to qualify to register with SEBI as an AMC.
1. The sponsor must have at least 40% stake in the AMC.

2. The chairman of the AMC is not a trustee of any mutual fund.
3. The AMC should have and must at all times maintain a minimum net worth of
Cr. 100 million.
4. The director of the AMC should be a person having adequate professional
experience.
5. The board of directors of such AMC has at least 50% directors who are not
associate of or associated in any manner with the sponsor or any of its
subsidiaries or the trustees.
The Transfer Agents
The transfer agent is contracted by the AMC and is responsible for maintaining the
register of investors / unit holders and every day settlements of purchases and
redemption of units. The role of a transfer agent is to collect data from distributors
relating to daily purchases and redemption of units.
Custodian
The mutual fund is required, under the Mutual Fund Regulations, to appoint a
custodian to carry out the custodial services for the schemes of the fund. Only
institutions with substantial organizational strength, service capability in terms of
computerization and other infrastructure facilities are approved to act as custodians.
The custodian must be totally delinked from the AMC and must be registered with
SEBI.
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Unit Holders
They are the parties to whom the mutual fund is sold. They are ultimate
beneficiary of the income earned by the mutual funds.
TYPES OF MUTUAL FUND SCHEMES
In India, there are many companies, both public and private that are engaged in the
trading of mutual funds. Wide varieties of Mutual Fund Schemes exist to cater to the
needs such as financial position, risk tolerance and return expectations etc. Investment
can be made either in the debt Securities or equity. The table below gives an overview
into the existing types of schemes in the Industry:
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TYPES OF MUTUAL FUND SCHEME
By Investment
By structure Other Schemes
Objectives
Tax saving fund

Open-ended Debt Schemes Equity Schemes
Schemes
Close Ended MM Mutual Large cap fund Sector specific

Schemes fund fund
FMP
Interval Schemes Index Schemes
Mid cap Fund
Other Debt
Schemes Small cap fund
Any Other
Equity Fund
Generally two options are available for every scheme regarding dividend payout and
growth option. By opting for growth option an investor can have the benefit of long-
term growth in the stock market on the other side by opting for the dividend option an
investor can maintain his liquidity by receiving dividend time to time. Sometime
people refer dividend option as dividend fund and growth fund. Generally decisions
regarding declaration of the dividend depend upon the performance of stock market
and performance of the fund.
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OPTION REGARDING DIVIDEND
Dividend Growth
Payout Reinvested
SYSTEMATIC INVESTMENT PLAN (SIP)

Systematic investment plan is like Recurring Deposit in which investor invests in the
particular scheme on regular intervals. In the case it is convenient for salaried class
and middle-income group. In this case on regular interval units of specified amount is
created. An investor can make payment by regular payments by issuing cheques, post
dated cheques, ECS, standing Mandate etc. SIP can be started in the any open-ended
fund if there is provision of it. There are some entry and exit load barriers for
discontinuation and redemption of the fund before the said period.
ACCORDING TO STRUCTURE
OPEN – ENDED FUNDS
An open – ended fund is one that is available for subscription all through the year.
These do not have a fixed maturity. Investors can conveniently buy and sell units at
Net Asset Value (NAV) related prices. The key feature of open – ended schemes is
liquidity.
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CLOSE – ENDED FUNDS
A close – ended fund has a stipulated maturity period which generally ranging from 3
to 15 years. The fund is open for subscription only during a specified period. Investors
can invest in the scheme at the same time of the initial public issue and thereafter they
can buy and sell the units of the scheme on the stock exchanges where they 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 repurchase at
NAV related prices.
INTERVAL FUNDS
Interval funds combine the features of open – ended and close – ended schemes. They
are open for sales or redemption during pre-determined intervals at their NAV.
ACCORDING TO INVESTMENT OBJECTIVE
GROWTH FUNDS
The aim of growth funds is to provide capital appreciation over the medium to long
term. Such schemes normally invest a majority of their corpus in equities. It has been
proven that returns from stocks are much better than the other investments had over
the long term. Growth schemes are ideal for investors having a long term outlook
seeking growth over a period of time.
INCOME FUNDS
The aim of the income funds is to provide regular and steady income to investors.
Such schemes generally invest in fixed income securities such as bonds, corporate
debentures and government securities. Income funds are ideal for capital stability and
regular income.
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BALANCED FUNDS
The aim of balanced funds is to provide both growth and regular income. Such
schemes periodically distribute a part of their earning and invest both in equities and
fixed income securities in the proportion indicated in their offer documents. In a rising
stock market, the NAV of these schemes may not normally keep pace or fall equally
when the market falls. These are ideal for investors looking for a combination of
income and moderate growth.
MONEY MARKET FUNDS
The main aim of money market funds is to provide easy liquidity, preservation of
capital and moderate income. These schemes generally invest in safe short term
instruments such as treasury bills, certificates of deposit, commercial paper and inter –
bank call money. Returns on these schemes may fluctuate depending upon the interest
rates prevailing in the market. These are ideal for corporate and individual investors as
a means to park their surplus funds for short periods.
OTHER SCHEMES
TAX SAVING SCHEMES
These schemes offer tax rebates to the investors under specific provisions of the
Indian Income Tax laws as the government offers tax incentives for investment in
specified avenues. Investments made in Equity Linked Saving Schemes (ELSS) and
Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The
Act also provides opportunities to investors to save capital gains.
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SPECIAL SCHEMES:-
INDEX SCHEMES
Index funds attempt to replicate the performance of a particular index such as the BSE
Sensex or the NSE 50.
SECTOR SPECIFIC SCHEMES
Sector funds are those which invest exclusively in a specified industry or a group of
industries or various segments such as ‘A’ group shares or initial public offerings.
BOND SCHEMES
It seeks investment in bonds, debentures and debt related instrument to generate

regular income flow.
FREQUENTLY USED TERMS:-
Advisor - Is employed by a mutual fund organization to give professional advice on

the fund’s investments and to supervise the management of its asset.
Diversification – The policy of spreading investments among a range of different

securities to reduce the risk.
Net Asset Value (NAV) - Net Asset Value is the market value of the assets of the
scheme minus its liabilities. The per unit NAV is the net asset value of the scheme
divided by the number of units outstanding on the Valuation Date.
Sales Price - Is the price you pay when you invest in a scheme. Also called Offer
Price. It may include a sales load.
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Repurchase Price - Is the price at which a close-ended scheme repurchases its units
and it may include a back-end load. This is also called Bid Price.
Redemption Price - Is the price at which open-ended schemes repurchase their units
and close-ended schemes redeem their units on maturity. Such prices are NAV
related.
Sales Load - Is a charge collected by a scheme when it sells the units also called
‘Front-end’ load. Schemes that do not charge a load are called ‘No Load’ schemes.
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ULIP
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PLATFORMS OF LIFE INSURANCE- UNIT LINKED INSURANCE PLANS
World over, insurance come in different forms and shapes. although the generic names
may find similar, the difference in product features makes one wonder about the basis
on which these products are designed .With insurance market opened up, Indian
customer has suddenly found himself in a market place where he is bombarded with a
lot of jargon as well as marketing gimmicks with a very little knowledge of what is
happening. This module is aimed at clarifying these underlying concepts and
simplifying the different products available in the market.
We have many products like Endowment, Whole life, Money back etc. All these
products are based on following basic platforms or structures viz.
 Traditional Life
 Universal Life or Unit Linked Policies
TRADITIONAL LIFE – AN OVERVIEW
The basic and widely used form of design is known as Traditional Life Platform. It is
based on the concept of sharing. Each of the policy holder contributes his contribution
(premium) into the common large fund is managed by the company on behalf of the
policy holders.
Administration of that common fund in the interest of everybody was entrusted to the
insurance company .It was the responsibility of the company to administer schemes
for benefit of the policyholders. Policyholders played a very passive roll. In the course
of time, the same concept of sharing and a common fund was extended to different
areas like saving, investment etc.
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FEATURES OF TL
 This is the simplest way of designing product as far as concerned. He has no other
responsibility but to pay the premium regularly.
 Company is responsible for the protection as well as maximization of the
policyholder’s funds.
 There is a common fund where in all the premiums paid are accumulated.
Expenses incurred as well as claims paid are then taken out of this fund.
 Companies carry out the valuation of the fund periodically to ascertain the
position. It is also a practice to increase the minimum possible guarantee under a
policy every year in the form of declaring and attaching bonuses to the sum
assured on the basis of this valuation. Declaration of bonuses is not mandatory.
 Based on the end objective , companies may offer different plans like saving
plans, investment plans etc.(e.g. Endowment , SPWLIP)
It helps to maintain a smooth growth and protects against the vagaries of the market.
In other words it minimizes the risk of investments for an average individual. He
shares his risk with a group of like-minded individuals.
ULIP is the Product Innovation of the conventional Insurance product. With the
decline in the popularity of traditional Insurance products & changing Investor
needs in terms of life protection, periodicity, returns & liquidity, it was need of
the hour to have an Instrument that offers all these features bundled into one.
A Unit Link Insurance Policy (ULIP) is one in which the customer is provided with a
life insurance cover and the premium paid is invested in either debt or equity products
or a combination of the two. In other words, it enables the buyer to secure some
protection for his family in the event of his untimely death and at the same time
provides him an opportunity to earn a return on his premium paid. In the event of the
insured person's untimely death, his nominees would normally receive an amount that
is the higher of the sum assured or the value of the units (investments).
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To put it simply, ULIP attempts to fulfill investment needs of an investor with

protection/insurance needs of an insurance seeker. It saves the investor/insurance-
seeker the hassles of managing and tracking a portfolio or products. More importantly
ULIPs offer investors the opportunity to select a product which matches their risk
profile.
Unit Linked Insurance Plans came into play in the 1960s and became very popular in
Western Europe and Americas. In India The first unit linked Insurance Plan, popularly
known as ULIP – Unit Linked Insurance Plan in India was brought out by Unit Trust
Of India in the year 1971 by entering into a group insurance arrangement with LIC o
provide for life cover to the investors, while UTI, as a mutual was taking care of
investing the unit holders money in the capital market and giving them a fair return.
Subsequently in the year 1989, another Unit Linked Product was launched by the LIC
Mutual Fund called by the name of “DHANARAKSHA” which was more or less on
the line of ULIP of UTI. Thereafter LIC itself came out with a Unit Linked Insurance
Product known by name “BIMA PLUS “in the year 2001-02.
Presently a number of private life insurance companies have launched Unit Linked
Insurance Products with a variety of new features.
TYPES OF ULIP
Unit linked insurance plans can be classified into various types depending upon the
parameter that is being taken as the basis.
On the basis of funds that ULIPs invest in:

Based on the type of fund a ULIP invests in, ULIPs can be divided into the following
three types –
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 Equity Funds
These are ULIP schemes that use the premium you pay to invest it partly in equity
funds. The risk ratio for these is higher since an active linkage to stock market.
 Balanced funds
As the name itself signifies, this is a ULIP that strives to strike a balance between
debt funds and stock market so as to minimize risk for customers and enhance
returns.
 Debt Funds
This type of ULIP invests customers’ money in debt instruments such as bonds,
where the risk is lower but the subsequent returns are low too.
On the basis of end use of funds
 For retirement planning

These ULIPs are offered for customers who want to plan their retirement earnings
by paying premiums while they are employed.
 For child education

These ULIPs offer benefits for your child’s education. These benefits include
rolling out money at key education milestones of your children and also ensuring
their education expenses are paid in case of some unforeseen circumstances take
place.
 For wealth creation

ULIPs meant for wealth creation help customers invest and save their money so that
they have a good corpus at any particular point of time.
 For medical benefits

ULIPs like these are aimed at providing financial assistance at times of medical
emergencies. Special riders can be availed for protection against major illnesses or
critical illnesses.
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On the basis of death benefit furnished to customers
 Type I ULIP
Type I ULIP plans pay higher of the assured sum value or the fund value to the
nominee in case of death of the policyholder.
 Type II ULIP
Type II ULIP plans pays the assured sum value plus the fund value to the nominee
in case of death of the policyholder.
How ULIPs work
ULIPs work on the lines of mutual funds. The premium paid by the client (less any
charge) is used to buy units in various funds (aggressive, balanced or conservative)
floated by the insurance companies. Units are bought according to the plan chosen by
the policyholder. On every additional premium, more units are allotted to his fund.
The policyholder can also switch among the funds as and when he desires. While
some companies allow any number of free switches to the policyholder, some restrict
the number to just three or four. If the number is exceeded, a certain charge is levied.
Individuals can also make additional investments (besides premium) from time to time
to increase the savings component in their plan. This facility is termed "top-up". The
money parked in a ULIP plan is returned either on the insured's death or in the event
of maturity of the policy. In case of the insured person's untimely death, the amount
that the beneficiary is paid is the higher of the sum assured (insurance cover) or the
value of the units (investments). However, some schemes pay the sum assured plus
the prevailing value of the investments.
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ULIP - KEY FEATURES

 Premiums paid can be single, regular or variable. The payment period too can be
regular or variable. The risk cover can be increased or decreased.
 As in all insurance policies, the risk charge (mortality rate) varies with age.
 The maturity benefit is not typically a fixed amount and the maturity period can
be advanced or extended.
 Investments can be made in gilt funds, balanced funds, money market funds,
growth funds or bonds.
 The policyholder can switch between schemes, for instance, balanced to debt or
gilt to equity, etc.
 The maturity benefit is the net asset value of the units.
 The costs in ULIP are higher because there is a life insurance component in it as
well, in addition to the investment component.
 Insurance companies have the discretion to decide on their investment portfolios.
 Being transparent the policyholder gets the entire episode on the performance of
his fund.
 ULIP products are exempted from tax and they provide life insurance.
 Provides capital appreciation.
 Investor gets an option to choose among debt, balanced and equity funds.
USP of ULIPS
INSURANCE COVER PLUS SAVINGS
ULIPs serve the purpose of providing life insurance combined with savings at market-
linked returns. To that extent, ULIPS can be termed as a two-in-one plan in terms of
giving an individual the twin benefits of life insurance plus savings.
MULTIPLE INVESTMENT OPTIONS

ULIPS offer a lot more variety than traditional life insurance plans. So there are
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multiple options at the individual’s disposal. ULIPS generally come in three broad
variants:
 Aggressive ULIPS (which can typically invest 80%-100% in equities, balance in

debt)
 Balanced ULIPS (can typically invest around 40%-60% in equities)
 Conservative ULIPS (can typically invest up to 20% in equities)
Although this is how the ULIP options are generally designed, the exact debt/equity
allocations may vary across insurance companies. Individuals can opt for a variant
based on their risk profile.
FLEXIBILITY
The flexibility with which individuals can switch between the ULIP variants to
capitalize on investment opportunities across the equity and debt markets is what
distinguishes it from other instruments. Some insurance companies allow a certain
number of ‘free’ switches. Switching also helps individuals on another front. They can
shift from an Aggressive to a Balanced or a Conservative ULIP as they approach
retirement. This is a reflection of the change in their risk appetite as they grow older.
WORKS LIKE AN SIP
Rupee cost-averaging is another important benefit associated with ULIPS. With an

SIP, individuals invest their monies regularly over time intervals of a month/quarter
and don’t have to worry about ‘timing’ the stock markets.
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HURDLES OF ULIP
NO STANDARDIZATION
All the costs are levied in ways that do not lend to standardization. If one company
calculates administration cost by a formula, another levies a flat rate. If one company
allows a range of the sum assured (SA), another allows only a multiple of the
premium. There was also the problem of a varying cost structure with age
LACK OF FLEXIBILITY IN LIFE COVER
ULIP is known to be more flexible in nature than the traditional plans and, on most
counts, they are. However, some insurance companies do not allow the individual to
fix the life cover that he needs. These rely on a multiplier that is fixed by the insurer.
OVERSTATING THE YIELD
Insurance companies work on illustrations. They are allowed to show you how much
your annual premium will be worth if it grew at 10 per cent per annum. But there are
costs, so each company also gives a post-cost return at the 10 per cent illustration,
calling it the yield. Some companies were not including the mortality cost while
calculating the yield. This amounts to overstating the yield.
INTERNALLY MADE SALES ILLUSTRATION
During the process of collecting information, it was found that the sales benefit
illustration shown was not conforming to the Insurance Regulatory and Development
Authority (IRDA) format. In many locations30 per cent return illustrations are still
rampant.
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NOT ALL SHOW THE BENCHMARK RETURN
To talk about returns without pegging them to a benchmark is misleading the

customer. Though most companies use Sensex, BSE 100 or the Nifty as the
benchmark, or the measuring rod of performance, some companies are not using any
benchmark at all.
EARLY EXIT OPTIONS
The Ulip product works over the long term. The earlier the exit, the worse off is the
investor since he ends up redeeming a high-front-load product and is then encouraged
to move into another higher cost product at that stage. An early exit also takes away
the benefit of compounding from insured.
CREEPING COSTS
Since the investors are now more aware than before and have begun to ask for costs,
some companies have found a way to answer that without disclosing too much. People
are now asking how much of the premium will go to work. There are plans that are
able to say 92 per cent will be invested, that is, will have a front load of just 8 per
cent. What they do not say is the much higher policy administration cost that is tucked
away inside (adjusted from the fund value).
While most insurance companies charge an annual fee of about Rs 600 as

administration costs, that stay fixed over time, there are plans that charge this amount,
but it grows by as much as 5 per cent a year over time. There are others that charge a
multiple of this amount and that too grows.
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COMPANIES OFFERING ULIP PLAN

1. Aegon life ULIP Plans
2. AVIVA ULIP Plans
3. Bajaj Allianz ULIP Plans
4. Birla Sun Life ULIP Plans
5. Canara HSBC ULIP Plans
6. DHFL Pramerica ULIP Plans
7. Edelweiss Tokio Life ULIP Plans
8. Exide Life ULIP Plans
9. Future Generali ULIP Plans
10. HDFC Life ULIP Plans
11. ICICI Prudential ULIP Plans
12. IDBI Federal ULIP Plans
13. India First ULIP Plans
14. Kotak Life ULIP Plans
15. LIC ULIP Plans
16. Max Life ULIP Plans
17. PNB MetLife ULIP Plans
18. Reliance Life ULIP Plans
19. Sahara Life ULIP Plans
20. SBI Life ULIP Plans
21. Shri Ram Life ULIP Plans
22. Star Union ULIP Plans
23. TATA AIA ULIP Plans
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COMPARISON
BETWEEN ULIPS
AND MUTUAL
FUNDS
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COMPARISON BETWEEN ULIPS AND

MUTUAL FUNDS
Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual
funds in terms of their structure and functioning. As is the cases with mutual funds,
investors in ULIPs are allotted units by the insurance company and a net asset value
(NAV) is declared for the same on a daily basis.
Similarly ULIP investors have the option of investing across various schemes similar
to the ones found in the mutual funds domain, i.e. diversified equity funds, balanced
funds and debt funds to name a few. Generally speaking, ULIPs can be termed as
mutual fund schemes with an insurance component.
However it should not be construed that barring the insurance element there is nothing
differentiating mutual funds from ULIPs.
POINTS OF DIFFERENCE BETWEEN THE TWO:
1. Mode of investment/ investment amounts
Mutual fund investors have the option of either making lump sum investments or
investing using the systematic investment plan (SIP) route which entails commitments
over longer time horizons. The minimum investment amounts are laid out by the fund
house.
ULIP investors also have the choice of investing in a lump sum (single premium) or
using the conventional route, i.e. making premium payments on an annual, half-
yearly, quarterly or monthly basis. In ULIPs, determining the premium paid is often
the starting point for the investment activity.
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This is in stark contrast to conventional insurance plans where the sum assured is the
starting point and premiums to be paid are determined thereafter.
ULIP investors also have the flexibility to alter the premium amounts during the
policy's tenure. For example an individual with access to surplus funds can enhance
the contribution thereby ensuring that his surplus funds are gainfully invested;
conversely an individual faced with a liquidity crunch has the option of paying a lower
amount (the difference being adjusted in the accumulated value of his ULIP). The
freedom to modify premium payments at one's convenience clearly gives ULIP
investors an edge over their mutual fund counterparts.
2. Expenses
In mutual fund investments, expenses charged for various activities like fund
management, sales and marketing, administration among others are subject to pre-
determined upper limits as prescribed by the Securities and Exchange Board of India.
For example equity-oriented funds can charge their investors a maximum of 2.5% per
annum on a recurring basis for all their expenses; any expense above the prescribed
limit is borne by the fund house and not the investors.
Similarly funds also charge their investors entry and exit loads (in most cases, either is
applicable). Entry loads are charged at the timing of making an investment while the
exit load is charged at the time of sale.
Insurance companies have a free hand in levying expenses on their ULIP products
with no upper limits being prescribed by the regulator, i.e. the Insurance Regulatory
and Development Authority. This explains the complex and at times 'unwieldy'
expense structures on ULIP offerings. The only restraint placed is that insurers are
required to notify the regulator of all the expenses that will be charged on their ULIP
offerings.
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Expenses can have far-reaching consequences on investors since higher expenses

translate into lower amounts being invested and a smaller corpus being accumulated.
ULIP-related expenses have been dealt with in detail in the article "Understanding
ULIP expenses".
3. Portfolio disclosure
Mutual fund houses are required to statutorily declare their portfolios on a quarterly
basis, albeit most fund houses do so on a monthly basis. Investors get the opportunity
to see where their monies are being invested and how they have been managed by
studying the portfolio.
There is lack of consensus on whether ULIPs are required to disclose their portfolios.
During our interactions with leading insurers we came across divergent views on this
issue.
While one school of thought believes that disclosing portfolios on a quarterly basis is
mandatory, the other believes that there is no legal obligation to do so and that
insurers are required to disclose their portfolios only on demand.
Some insurance companies do declare their portfolios on a monthly/quarterly basis.

However the lack of transparency in ULIP investments could be a cause for concern
considering that the amount invested in insurance policies is essentially meant to
provide for contingencies and for long-term needs like retirement; regular portfolio
disclosures on the other hand can enable investors to make timely investment
decisions.
4. Flexibility in altering the asset allocation
As was stated earlier, offerings in both the mutual funds segment and ULIPs segment
are largely comparable. For example plans that invest their entire corpus in equities
(diversified equity funds), a 60:40 allotment in equity and debt instruments (balanced
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funds) and those investing only in debt instruments (debt funds) can be found in both
ULIPs and mutual funds.
If a mutual fund investor in a diversified equity fund wishes to shift his corpus into a
debt from the same fund house, he could have to bear an exit load and/or entry load.
On the other hand most insurance companies permit their ULIP inventors to shift
investments across various plans/asset classes either at a nominal or no cost (usually, a
couple of switches are allowed free of charge every year and a cost has to be borne for
additional switches).
Effectively the ULIP investor is given the option to invest across asset classes as per
his convenience in a cost-effective manner.
This can prove to be very useful for investors, for example in a bull market when the
ULIP investor's equity component has appreciated, he can book profits by simply
transferring the requisite amount to a debt-oriented plan.
5. Tax benefits
ULIP investments qualify for deductions under Section 80C of the Income Tax Act.
This holds well, irrespective of the nature of the plan chosen by the investor. On the
other hand in the mutual funds domain, only investments in tax-saving funds (also
referred to as equity-linked savings schemes) are eligible for Section 80C benefits.
Maturity proceeds from ULIPs are tax free. In case of equity-oriented funds (for
example diversified equity funds, balanced funds), if the investments are held for a
period over 12 months, the gains are tax free; conversely investments sold within a
12-month period attract short-term capital gains tax @ 10%.
Similarly, debt-oriented funds attract a long-term capital gains tax @ 10%, while a
short-term capital gain is taxed at the investor's marginal tax rate.
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Despite the seemingly similar structures evidently both mutual funds and ULIPs have
their unique set of advantages to offer. As always, it is vital for investors to be aware
of the nuances in both offerings and make informed decisions.
Investing in ulips? Remember …………
The high returns (above 20 per cent) are definitely not sustainable over a long term,
as they have been generated during the biggest Bull Run in recent stock market
history.
The free hand given to ULIPs might prove risky if the timing of exit happens to
coincide with a bearish market phase, because of the inherently high equity
component of these schemes.
While a debt-oriented ULIP scheme might be superior to a debt option in a

conventional mutual fund due to tax concessions that insurance companies enjoy, such
tax incentives may not last.
Look beyond NAVs
The appreciations in the net asset value (NAV) of ULIPs barely indicate the actual
returns earned on your investment. The various charges on your policy are deducted
either directly from premiums before investing in units or collected on a monthly basis
by knocking off units.
Either way, the charges do not affect the NAV; but the number of units in your
account suffers. You might have access to daily NAVs but your real returns may be
substantially lower.
A rough calculation shows that if our investments earn a 12 per cent annualized return
over a 20-year period in a growth fund, when measured by the change in NAV, the
real pre- tax returns might be only 9 per cent. The shorter the term, the lower the real
returns.
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How charges dent returns
An initial allocation charge is deducted from our premiums for selling, marketing and
broker commissions. These charges could be as high as 65 per cent of the first year
premiums. Premium allocation charges are usually very high (5-65 per cent) in the
first couple of years, but taper off later. The high initial charges mainly go towards
funding agent commissions, which could be as high as 40 per cent of the initial
premium as per IRDA (Insurance Regulatory and Development Authority)
regulations.
The charges are higher for a linked plan than a non-linked plan, as the former require
lot more servicing than the latter, such as regular disclosure of investments, switches,
re-direction of premiums, withdrawals, and so on. Insurance companies have the
discretion to structure their expenses structure whereas a mutual fund does not have
that luxury. The expense ratios in their case cannot exceed 2.5 per cent for an equity
plan and 2.25 per cent for a debt plan respectively. The lack of regulation on the
expense front works to the detriment of investors in ULIPs.
The front-loading of charges does have an impact on overall returns as we lose out
on the compounding benefit. Insurance companies explain that charges get evened out
over a long term. Thus we are forced to stay with the plan for a longer tenure to even
out the effect of initial charges as the shorter the tenure, the lower our real returns.
If we want to withdraw from the plan, you lose out, as you will have to pay
withdrawal charges up to a certain number of years.
In effect, when we lock in our money in a ULIP, despite the promise of flexibility and
liquidity, we are stuck with one fund management style. This is all the more reason to
look for an established track record before committing our hard-earned money.
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Evaluate alternative options
As an investor we have to evaluate alternative options that give superior returns before
considering ULIPs.
Insurance companies argue that comparing ULIPs with mutual funds is like
comparing oranges with apples, as the objectives are different for both the products.
Most ULIPs give us the choice of a minimum investment cover so that we can direct
maximum premiums towards investments. Thus, both ULIPs and mutual funds
target the same customers. If risk cover is your primary objective, pure insurance
plans are less expensive.
When we choose a mutual fund, we look for an established track record of three to
five years of consistent returns across various market cycles to judge a fund's
performance.
It is early days for insurance companies on this score; investing substantially in linked
plans might not be advisable at this juncture.
Try top-ups:
Insurance companies allow us to make lump-sum investments in excess of the regular

premiums. These top-ups are charged at a much lower rate — usually one to two per
cent. The expenses incurred on a top-up including agent commissions are much lower
than regular premiums.
Some companies also give a credit on top-ups. For instance, if you pay in Rs 100 as a
top up, the actual allocation to units will be Rs 101. If you keep the regular premiums
to the minimum and increase your top ups, you can save up on charges, enhancing
returns in the long run.
Shubhi Arora 86
Reduce life cover:
The price of the life cover attached to a ULIP is higher than a normal term plan. Risk
charges are charged on a daily or monthly basis depending on the daily amount at risk.
Rates are not locked and are charged on a one-year renewal basis.
Our life cover charges would depend on the accumulation in your investment account.
As accumulation increases, the amount at risk for the insurance company decreases.
However, with increasing age, the cost per Rs 1,000 sum assured increases, effectively
increasing your overall insurance costs. A lower life cover could yield better returns.
Stay away from riders:
Any riders, such as accident rider or critical illness rider, are also charged on a one-
year renewal basis. Opting for these riders with a plain insurance cover could provide
better value for money.
ULIP's as an investment is a very good vehicle for wealth creation, but way Unit
Linked Insurance schemes are sold by insurance company representative's and
insurance advisors is not correct.
ULIP's usually have following charges built into it :
a) Up-front Charges
b) Mortality Charges (Charges for providing the risk cover for life)
c) Administrative Charges
d) Fund Management Charges
Mutual Fund's have the following charges :
a) Up-front charges (Marketing, Advertising, distributor’s fee etc.)
b) Fund Management Charges (expenses for managing your fund)
Shubhi Arora 87
A few aspects of investing in ULIPs versus mutual funds.
Liquidity
ULIPs score low on liquidity. According to guidelines of the Insurance Regulatory

and Development Authority (IRDA), ULIPs have a minimum term of five years and a
minimum lock in of three years. You can make partial withdrawals after three years.
The surrender value of a ULIP is low in the initial years, since the insurer deducts a
large part of your premium as marketing and distribution costs. ULIPs are essentially
long-term products that make sense only if your time horizon is 10 to 20 years.
Mutual fund investments, on the other hand, can be redeemed at any time, barring
ELSS (equity-linked savings schemes). Exit loads, if applicable, are generally for six
months to a year in equity funds. So mutual funds score substantially higher on
liquidity.
Tax efficiency:
ULIPs are often pitched as tax-efficient, because your investment is eligible for
exemption under Section 80C of the Income Tax Act (subject to a limit of Rs 1 lakh).
But investments in ELSS schemes of mutual funds are also eligible for exemption
under the same section .Besides the premium, the maturity amount in ULIPs is also
tax-free, irrespective of whether the investment was in a balanced or debt plan. So
they do have an edge on mutual funds, as debt funds are taxed at 10% without
indexation benefits, and 20% with indexation benefits. The point, though, is that if
you invest in a debt plan through a ULIP, despite its tax-efficiency your post-tax
returns will be low, because of high front-end costs. Debt mutual funds don’t charge
such costs.
Shubhi Arora 88
Expenses:
Insurance agents get high commissions for ULIPs, and they get them in the initial
years, not staggered over the term. So the insurer recovers most charges from you in
the initial years, as it risks a loss if the policy lapses. Typically, insurers levy
enormous selling charges, averaging more than 20% of the first year’s premium, and
dropping to 10% and 7.5% in subsequent years. (And this is after investors balked
when charges were as high as 65 %!) Compare this with mutual funds’ fees of 2.25%
on entry, uniform for all schemes. Different ULIPs have varying charges, often not
made clear to investors.
For instance, an agent who sells you a ULIP may get 25% of your first year’s
premium, 10% in the second year, 7.5% in the third and fourth year and 5% thereafter.
If your annual premium is Rs 10,000 and the agent’s commission in the first year is
25%, it means only Rs 7,500 of your money are invested in the first year. So even if
the NAV of the fund rises, say 20%, that year, your portfolio would be worth only Rs
9,000—much lower than the Rs 10,000 you paid. On the other hand, if you invest Rs
10,000 in an equity scheme with a 2.25% entry load, Rs 225 is deducted, and the rest
is invested. If the scheme’s NAV rises 20%, your portfolio is worth Rs 11,730. This
shows how ULIPs work out expensive for investors. Deduct the cost of a term policy
from the mutual fund returns, and you’re still left with a sizeable difference.
Shubhi Arora 89
OBJECTIVES OF THE STUDY

 To study the investors preference towards mutual fund or ULIP of Edelweiss
Broking Limited.
 To study the factors affecting the behavior of the investors that made them
invest in mutual funds or ULIP of Edelweiss Broking Limited.
SCOPE OF THE STUDY

 Subject matter is related to the investor’s approach towards mutual funds and
ULIP of Edelweiss Broking Limited.
 People of age between 25 to 60
 Area limited to Lucknow.
 Demographics include names, age, qualification, occupation, marital status and
annual income.
Shubhi Arora 90
CHAPTER-2
RESEARCH METHODOLOGY
 Research Design
Descriptive Research Design
 Sample Size
This study involves 50 respondents.
 Sample Unit
Investors
 Sampling Technique
The sample size has been taken by convenient sampling technique.
 Data Collection
Data has been collected both from primary as well as secondary sources.
Shubhi Arora 91
CHAPTER 3
INTERPRETATION & ANALYSIS
PERSONAL DETAILS:
Name:
Age Group:
Below 20
Between 20-30
Between 30-40
Above 40
Age Group
6
16
9 Below 20
Between 20-30
Between 30-40
19 Above 40
Shubhi Arora 92
Qualification:
Under graduate Graduate
Post graduate Others
Qualification
8 4
14 Under Graduate
Graduate
Post Graduate
24
Others
Occupation:
Salaried Business Housewife Professional

Retired
Occupation
12 11 Salaried
Business
8
Housewife
14
5 Professional
Retired
Shubhi Arora 93
Marital status:
Single Married
Marital Status
14
Single
Married
36
Annual income:
Below Rs 1, 50,000 Rs 1, 50,000- Rs2, 50,000
Rs 2, 50,000-Rs 4, 00,000 Above Rs 4,00,000
Annual Income
Below Rs. 1,50,000

4
6
23
Rs. 1,50,000 - Rs.
2,50,000
17 Rs. 2,50,000 - Rs.

4,00,000
Above Rs. 4,00,000
Shubhi Arora 94
Q-1. Are you aware about various investment plan?
Investment plan
Yes 50
No 0
60
50
50
40
30
20
10
0
0
Yes NO
Investment plan
Interpretation
From the above information the researcher has concluded that all the investors are
aware about various investment plans available.
Shubhi Arora 95
Q-2. What percentage of your income do you invest?
Percentage of income invested
10% and below 11
11-20% 21
21-30% 14
30% and above 4
25
21
20
15 14
11
10
5 4
0
10% and above 11-20% 21-30% 30% and above
Percentage of Income Invested
Interpretation
From the above information the researcher can conclude that out of 50
respondents, 21 respondents invests 11-20% of their income, 14 respondents
invests 21-30% of their income, 11 respondents invest 10% of their income
whereas remaining respondents invest 30% and above of the part of their income
in investment policy.
Shubhi Arora 96
Q-3.Wheredo you invest your money- Mutual Fund or ULIP?
Investment of money
Mutual Fund 31
ULIP 10
Others 9
35
31
30
25
20
15
10
10 9
0
Mutual Fund ULIP Others
Investment of Money
Interpretation
From the above information the researcher can conclude that out of 50 respondents, 31
respondents has invested their money in Mutual funds, 10 in ULIP and rest of them
have invested somewhere else.
Shubhi Arora 97
Q-4. How long have you been investing in mutual funds or ULIP?
Time period of investment

1-3 years 15
3-5 years 24
5-10 years 11
30
25 24
20
15
15
11
10
0
1-3 years 3-5 years 5-10 years
Time period of investment
Interpretation
respondents has been investing from last1-3 years, 24 respondents has been investing
from last 3-5 years, whereas remaining 11 respondents has been investing from last 5-
10 years.
Shubhi Arora 98
Q-5.What is the mode of information that you use before doing an investment in
Mutual fund or ULIP?
Mode of information
Advertisement 9
Agents 20
Seminar Conducted by Company 10

Representatives
Friends & Family 11
25
20
20
15
11
10
10 9
0
Advertisement Agents Seminars Friends & Family
Mode of information
Interpretation
From the above information it can be concluded that out of 50 respondents 9 of them
got the information about Mutual funds or ULIP from advertisement, 20 respondents
got the information from agents of different companies, 10 respondents got the
information from the seminars that has been conducted by different companies, and 11
respondents got the information from friends & family members to do investment.
Shubhi Arora 99
Q-6. Which are the companies in which you have already invested in?
Preferred Company for Investment

COMPANIES GOVERNMENT PRIVATE
PNB 9 -
Cental Bank 7 -
Edelweiss Broking - 10
Ltd.
Karvy Broking Ltd. - 8
HDFC - 16
Preferred Company for Investment

18
16
16
14
12
10
10 9
8
8 7
6
4
2
0
PNB Central Bank Edelweiss Broking Karvy Broking Ltd. HDFC
Ltd.
Government Private
Interpretation
From the above information it can be concluded that out of 50 respondents,16
respondents are interested to invest in Government sector whereas remaining 32
respondents are interested to invest in Private sector.
Shubhi Arora 100

Q-7.Which factor do you consider before investing in mutual fund or ULIP?
Factors considered before investment

Safety of principal amount 10
Risk Factor 7
Higher returns 13
Tax shelter 17
Others 3
18 17
16
14 13
12
10
10
8 7
6
4 3
2
0
Safety of principal Risk factor Higher returns Tax shelter Others
amount
Factors Considered Before Investment Column1 Column2
Interpretation
From the above information the researcher can conclude that out of 50 respondents 10
respondents invest money because of safety of principal amount, 8 respondents invest
their money so as to minimize their risk, 13 respondents invest their money just to get
high returns, 17 respondents invest their money just not to pay taxes to
government.and remaining considers some other factors before before investing their
money.
Shubhi Arora 101

Q-8. Imagine that stock market drops immediately after you invest in it then
what will you do?
Effect of stock market drop on investors
Withdraw your money 12
Wait and watch 22
Invest more in it 16
25 22
20
16
15 12
10
0
Withdraw your money Wait and watch Invest more in it
Effect of stock market drop on investors
Interpretation
From the above information the researcher can conclude that out of 50
respondents 12 respondents will withdraw their money if the stock market
declines, 22 respondents said that they will wit & watch the prevailing market
situation, whereas remaining 16 respondent said that they will invest more
money in stock market as they think that they will be benefitted in future when
stock market rises.
Shubhi Arora 102
Q-9. Rate your satisfaction level in making investment decisions in Mutual Fund?
Satisfaction level on investment
Strongly satisfied 29
Satisfied 11
Not satisfied 10
Chart Title
35
29
30
25
20
15
11 10
10
0
Strongly Satisfied Satisfied Not Satisfied
Satisfaction level on investment
Interpretation
respondents are strongly satisfied, 11 respondents are satisfied and remaining 10
respondents are not satisfied with their investment decision.
Shubhi Arora 103

Q-10.Do you have any other investment policy?
Investment plan
Yes 38
No 12
40 38
35
30
25
20
15 12
10
5
0
Yes No
Investment plan
Interpretation
respondents have another investment plan whereas remaining 12 respondents don’t
have another investment plan.
Shubhi Arora 104

Q-11. How often do you monitor your investment pan?
Monitoring of investment plan
Daily 11
Monthly 31
Occasionally 08
35
31
30
25
20
15
11
10 8
0
Daily Monthly Occasionally
Monitoring of investment plan
Interpretation
From the above information the researcher can conclude that out of 50 respondents,11
respondents monitor their investment plan daily,31 respondents monitor their
investment plan monthly, whereas remaining 8 respondents monitor their investment
plan occasionally.
Shubhi Arora 105

CHAPTER 4
FINDINGS
From the above analysis following were the finding of my study:-
1. Most of the investors are aware about the investment option available.
2. Most of the investors invest their 11-20% of their income in Mutual Fund or ULIP.
3. Most of the investors have invested their money in mutual fund as compared to
ULIP
4. Most of the investors prefer to invest their money for 3 – 5 years.
5. Agents play a vital role in giving information and motivating them to do
investment.
6. Most of the investors like to invest money in private sector because the returns &
growth in private sector is more than in government sector.
7. Investors invest their money to get tax rebate as well as good returns.
8. At the time of stock market dropout investors like to hold their investment plan
rather than to withdraw it.
9. Many of the investors during my research said that they have an alternative
investment policy also.
10.Investors were not highly satisfied with their investment plan they were just
satisfied with their investment plan.
11.During my survey it was found that investors were actively participated in share
market as they monitor stock market regularly.
Shubhi Arora 106

RECOMMENDATIONS
1. The company is offering ULIP products; hence it is required to educate the client
about its benefits.
2. The expectation of the people from the mutual funds is high. So, the portfolio of
the fund should be prepared taking into consideration the expectations of the
people.
3. Try to reduce fund charges, administration charges and other charges which help
to invest more funds in the security market and earn good returns.
4. Different campaigns should be launched to educate people regarding mutual funds.
5. Companies should give regular dividends as it depicts profitability.
6. Companies should give handsome brokerage to brokers so that they get attracted
towards distribution of the funds.
Shubhi Arora 107

LIMITATIONS OF THE STUDY

No study is free from limitations. The limitations of this study can be:
 Sample size taken is small and may not be sufficient to represent the whole
population and fails to predict the generalized preference of investors towards
mutual funds and ULIP.
 The result is based on primary and secondary data that has its own limitations.
 Due to time and budget constraints the study only covers the area of Lucknow, the
results of which cannot be generalized for other areas.
Shubhi Arora 108

CONCLUSION
A mutual fund is the ideal investment vehicle for today’s complex and modern
financial scenario. Markets for equity shares, bonds and other fixes income
instruments, real estate, derivatives and other assets have become mature and
information driven. Today each and every person is fully aware of every kind of
investment proposal. Everybody wants to invest money, which entitled of low risk,
high returns and easy redemption. In my opinion before investing in mutual funds, one
should be fully aware of each and everything.
At the same time ULIP as an investment avenue is good for people who have interest
in staying for a longer period of time, that is around 10 years and above. Also in the
coming times, ULIP will grow faster. ULIP are actually being publicized more and
also the other traditional endowment policies are becoming unattractive because of
lower interest rate. It is good for people who were investing in ULIP policies of
insurance companies as their investments earn them a better return than the other
policies.
Shubhi Arora 109

BIBLIOGRAPHY
 www.amfiindia.com
 www.principalindia.com
 www.investorsguide.com
 www.mutualfundsindia.com
 www.edelweiss.in
BOOKS
 FINANCIAL MANAGEMENT- Khan Jain -7thEdition- MC Graw Hill
Education Pvt. Limited
 FINANCIAL MANAGEMENT (PRINCIPLES & PRACTICES)- Dr. SN
Maheshwari- 14th Edition- Sultan Chand & Sons
 FINANCIAL MANAGEMENT ( THEORY, CONCEPTS PROBLEMS)-
Dr. R.P. Rustagi- 5th Edition- TAXMANS
Shubhi Arora 110

ANNEXURE
Shubhi Arora 111

I am Shubhi Arora pursuing MBA from Shri Ram Murti Smarak College of
Engineering and Technology Bareilly. As a part of the curriculum I have done
research on “A STUDY ON INVESTORS PREFERENCE TOWARDS THE
PRODUCTS OFEDELWEISS BROKING LIMITED, LUCKNOW(WITH
SPECIAL REFERENCE TO ULIP AND MUTUAL FUNDS)”. Kindly help me in
the same by filling the Questionnaire. Your response would be kept strictly
confidential and would be used only for academic research.
PERSONAL DETAILS
Name:
Age Group:
Below 20
Between 20-30
Between 30-40
Above 40
Qualification:
Under graduate Graduate
Post graduate Other: _______________
Occupation:
Salaried Business Housewife
Professional Retired Other: _________
Shubhi Arora 112

Marital status:
Single Married
Annual income:
Below Rs 1, 50,000 Rs 1, 50,000- Rs2, 50,000
Rs 2, 50,000-Rs 4, 00,000 Above Rs 4, 00,000
Q-1. Are you aware about various investment plan?
a) Yes b) No
Q-2. What percentage of your income do you invest?
a) 10% and below b) 11-20%
c) 21-30% d) 30% and above
Q-3. Where do you invest your money- Mutual Fund or ULIP?
a) Mutual Fund
b) ULIP
c) Others
Shubhi Arora 113

Q-4. How long have you been investing in mutual funds or ULIP?
a) 1-3 years
b) 3-5 years
c) 5-10 years
Q-5. What is the mode of information that you use before doing an investment in
Mutual fund or ULIP?
a) Advertisement
b) Agents
c) Seminar Conducted by Company Representatives
d) Friends & Family
Q-6. Which are the companies in which you have already invested in?
a) PNB
b) Cental Bank
c) Edelweiss Broking Ltd.
d) HDFC
Q-7. Which factor do you consider before investing in mutual fund or ULIP?
a) Safety of principal amount

b) Risk Factor
c) Higher returns
d) Tax shelter
e) Others
Shubhi Arora 114

Q-8. Imagine that stock market drops immediately after you invest in it then
what will you do?
a) Withdraw your money

b) Wait and watch
c) Invest more in it
Q-9. Rate your satisfaction level in making investment decisions in Mutual Fund?
a) Strongly satisfied
b) Satisfied
c) Not satisfied
Q-10. Do you have any other investment policy?
a) Yes
b) No
Q-11. How often do you monitor your investment plan?
a) Daily
b) Monthly
c) Occasionally
Shubhi Arora 115

SRMS College of Engineering. & Technology
Guidelines for Summer Training Project
1. Summer Training Project duration will be from June 2017 to July 2017. (4-6
weeks).
2. The students are required to submit Summer Training Report in the organization
to get the certificate of completion of Summer Training.
4. If two or more students are working in the same organization during Summer
Training, the part B i. e. problem area of study for each student will be different.
3. All students are required to maintain a Diary in which daily activities of Summer
Training Project work must be recorded in terms of reporting date and time,
duration of stay in the organization or in field, type of study performed etc. It has
to be countersigned by reporting officer and will be verified during the Summer
Training as well as at the end of training
4. The summer training will consists of TWO parts and accordingly report has to be
prepared as follow
Part A: Study of the functioning of the organization as follow. (Approx 100
Pages)
This part consists details about the functioning of the organization in which the
student undergone Summer Training. The study must be compiled as follow in the
report.
Shubhi Arora 116
CHAPTER 1 : GENESIS OF THE ORGANIZATION.
CHAPTER 2 : ORGANIZATION STRUCTURE AND HIERARCHIES
CHAPTER 3 : FUNCTIONAL AREAS i.e HRM, MARKETING, FM,
PRODUCTION/OPERATIONS ETC
CHAPTER 4 : PRODUCTS/SERVICES
CHAPTER 5 : MARKETING STRATEGIES
CHAPTER 6 : BUSINESS PROCESSES LIKE SUPPLY CHAIN,
OFFICE MANAGEMENT, CORPORATE COMMUNICATION ETC.
(Chapters could be merged or extended; chapter heading could be modified
accordingly, depending upon the nature of the organization. Students are instructed
to discuss with the faculty guide in this regard)
Part B: Research study on the problem area from your specializations – (Approx
50 Pages)
In this part a problem area for study under Summer Training project will be assigned
by the supervisor/reporting officer of the organization. The problem area of study
must be from opted specializations. Student must understand the problem assigned by
the supervisor of the organization in proper way. For clarification they may contact
the faculty mentor. The student will collect secondary and primary data by various
methods during summer training. The primary data has to be collected by
questionnaire and it must be properly analyzed and interpreted to develop a suitable
and feasible solution for the assigned problem in comprehensive way. This part will
be compiled as follow.
Shubhi Arora 117

CHAPTER 1: INTODUCTION, SCOPE AND OBJECTIVES- This chapter will
have a details about the topic, its relevance and scope of the study should be included.
The main topic of the research must be logically elaborated in suitable numbers of
objectives.
CHAPTER 2: RESEARCH DESIGN – This chapter will include, Types of Data and
Research Design, Sampling Method, Data Collection Method, Questionnaire,
Statistical Tools used in the research etc.
CHAPTER 3: INTERPRETATION AND ANALYSIS- In this chapter all data must
be tabulated and interpreted. Response from each question must be properly tabulated
and interpreted. Statistical Analysis on Sample Characteristics and Hypothesis testing
(if any) must be done
CHAPTER 4: CONCLUSION, RECOMMENDATION AND LIMITATIONS- A
logical flow on the basis of findings from interpretation should be written with
limitations faced during research. It must be properly guided by the faculty members.
Annexure- It will consist of questionnaire and other documents like forms, leaflets etc
used as reference during your study.The students are required to remain in contact
with the faculty mentor for guidance & preparation of report of the Summer Training
Project. Any modifications/ suggestions should be incorporated in that report before
final compilation and binding.
Preparation and compilation of Summer Training Project Report
All work of the Summer Training Project will be compiled by the student in form of
Summer Training Project Report typed on A4 size papers (one side) of 100 to 150
Shubhi Arora 118

pages. The report must be typed in 13 points Times New Roman fonts with double
spacing between the lines as per the specifications given below. The report would be
arranged with following contents/ sections:
1. Cover Page
2. Certificate by the Organization in which the training is completed
3. Certificate by the MBA Department of SRMSCET (To be added later during
submission of the report in college)
4. Declaration by the student
5. Acknowledgement by the student
6. Executive Summary of the Summer Training Project (approx 2 pages)
7. Content
8. List of tables
9. List of figure
PART A: About the organization
All Chapters (Chapters 1 to n)
PART B: About the problem/ study and suggested solution
All Chapters (Chapter 1 to n)
Guidelines and format for compilation of Report
Page: A 4 with left margin 1.5 cm and right margin 1.00cm. One side printing, double
spacing between the lines
Guidelines for Fonts:
Shubhi Arora 119

CHAPTER NO 1 to n- To be in Times New Roman, capital, 36 points, Bold,
Underline, centered
CHAPTER Names - To be in Times New Roman, capital, 26 points, Bold, centered
Sections - To be in Times New Roman, Normal, 18 points, Bold, left justified
Sub Sections – To be in Times New Roman, Normal, 16 points, Bold, left justified
Body Text : To be in Times New Roman, Normal, 13 points, Justified, double
spacing between lines.
Header: College Logo (Right) and Summer Training Project Report (Left)
Footer: Name of the Student (Left) and Page Number (Right
Most Important:
1. Each student will report in the organization in college uniform with tie and
Identity Card, however in field work they can have a formal dress.
2. For the students, faculty guide from the department has been deputed. Each
student is required to regularly interact with Faculty Guide during summer
training.
3. The students are instructed to maintain discipline and strict regularity during
Summer Training.
4. Each student is instructed to strictly follow the rules and decorum of the
organization.
5. Each and every guidelines must be followed strictly during summer training
and preparation of the report.
6. Students are required to submit a hard bound copy of Summer Training Project
Shubhi Arora 120

Report to the supervisor/reporting officer of the organization for getting the
certificate of completion of summer training. This work must be finished by
July, 2017.
7. Students are required to submit One Spiral bounded copy of Summer
Training Project Report to the Faculty mentor after reporting back to the
department for verification and modifications (if required). After getting it
presented, verified and approved by the Faculty mentor, the student will submit
TWO HARD BINDED Copies of Summer Training Project Report to the
department.
Shubhi Arora 121

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SUMMER TRAINING PROJECT REPORT

Submitted in the partial fulfillment for award the degree of

Dr. A.P.J.A.K. Technical University, Lucknow

Faculty of Management Science

Shri Ram Murti Smarak College of Engineering & Technology,

Dr. Anant K. Srivastava Date:

This is to declare that I SHUBHI ARORA student of M.B.A in Faculty of

I am extremely grateful to Dr. Anant Kr. Srivastava, Head of Department-FMS, Ms.

Chapter Subject Page Number

Chapter Subject Page Number

ORIGIN, VISION & MISSION

 EDELWEISS FINANCIAL SERVICES LIMITED is a listed company

A FOUNDATION OF VALUES: THE EDELWEISS

We will be a Thinking Organization

 Overview-Our Investment Banking business is dedicated to providing

corporations, entrepreneurs and investors, the highest quality independent financial

and transaction expertise, including private placements of equity, capital raising

services in public markets, mezzanine and convertible debt, mergers and

acquisition and restructuring advisory services. We have a track record of

successfully closing more than 100 transactions to date.

1) Private Equity Advisory - We have been a leading Private Equity advisor

2) Structured Finance Advisory - Over the years, we have built up

investors. Our portfolio of solutions comprises the following Promoters Funding

3) Mergers and Acquisitions Advisory - Edelweiss’ M&A team provides

4) Real Estate Advisory - Our advisory solutions are primarily focused on

5) Equity Capital Markets - We are in the vanguard of equity capital markets

Allotments Foreign Currency Convertible Bonds(FCCBs) Global Depository

6) Infrastructure Advisory - A critical ingredient for sustainable

7) Debt Restructuring Advisory - At Edelweiss we have a very competent

intensive execution systems have enabled us to relentlessly service our clients in

institutional investors, including Pension Funds, Hedge Funds, Mutual Funds,

insurance companies, and banks.

 Overview- Edelweiss Asset Management offers a range of investment

institutional investors. Our close focus on client requirements is our inspiration

constant focus on risk and preservation of capital.

1) Portfolio Management - Edelweiss offers the discerning investor an

 Overview- It is a specialized profession where our experts combine their

individuals, families, family offices, or corporate. Edelweiss Wealth Management

Trusts and Corporate. We offer advisory services on Structured Products, Portfolio

Management, Mutual Funds, Insurance, Derivative Strategies, Direct Equity, IPOs,

Real Estate Funds and Art Funds.

PRIVATE CLIENT BROKERAGE

 Overview- The Private Client Services Group at Edelweiss is focused on

Corporate Clients. We have geographic reach through our Branches, Channel

leadership to develop a portfolio of offerings designed to serve the spectrum of

2) Derivatives- Edelweiss being a pioneer in Quantitative & Alternative Research,

3) Financing - offer various products and services to individuals and corporates

 Overview- Edelweiss Housing Finance Limited (EHFL) is a Housing

Finance Company incorporated under the aegis of the National Housing

Bank (NHB). It is part of the Edelweiss Group of Companies. EHFL has an

array of loan solutions which can be tailored to your requirements. If you’re

the shortest time.

With a deep knowledge and understanding of capital markets backed by strong

2x to 3x) ensures low non–performing loans. Edelweiss continues to work on new

RETAIL BROKING & DISTRIBUTION

company structures its treasury investments to maintain sufficient liquidity in its

Edelweiss offers dedicated brokerage services to high net worth

WEALTH ADVISORY & INVESTMENT SERVICES

DIN/DPIN/PAN Director Name Appointment Date Designation

00008322 RASHESH CHANDRAKANT 21/11/1995 Managing Director

00237366 RUJAN HARCHAND PANJWANI 24/06/2013 Whole-time

00009438 HIMANSHU NALIN KAJI 01/11/2011 Whole-time

00008509 VENKATCHALAM ARAKONI 20/02/1996 Whole-time

06990345 BISWAMOHAN MAHAPATRA 26/03/2015 Director