Preference Among Advisors Towards Mutual Fund at KARVY STOCK BROKING LTD

A PROJECT REPORT
ON
A STUDY ON PREFERENCE OF THE ADVISORS TOWARDS

MUTUAL FUND
AT
KARVY STOCK BROKING LTD. ALLAHABAD
SUBMITED BY
Prashant Joshi
Under the guidance of
“Mrs Archana A Borde”
SUBMITTED TO
UNIVERSITY OF PUNE
In partial fulfillment of the requirement for the award of the degree of Masters in
Marketing Management(MMM)
Through
INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH, CHINCHWAD
PUNE, 411019
ACEDAMIC YEAR
2009-11
Institute of Business Management & Research, Chinchwad, Pune Page i

ACKNOWLEDGEMENT
I am really happy and exited in representing this summer training project report before
you.
I must express my gratitude towards KARVY STOCK BROKING LTD for giving me an
opportunity to work with on this report.
My sincere gratitude to Mr Abhinav Prasad. (Head, northern region,[Distribution]

karvy) and Dr. Asha Panchpande (Director, IBMR, chinchawad, Pune), for providing
me with an opportunity to work with karvy stock broking limited.
I am highly indebted to Mr. Varun Pandey, product head ( Distribution), Karvy Stock
Broking Ltd. Allahabad also my company project guide, who has provided me with the
necessary information and his valuable suggestion and comments on bringing out this
report in the best possible way.
I also thank Madam Archana Borde, Project guide, IBMR, chinchwad, Pune who has
sincerely supported me with the valuable insights into the completion of this project.
I am grateful to Mr. Naval Agarwal (branch co-ordinator, Karvy, Allahabad) and all of
the members of Civil Lines branch, who have helped me in the successful completion of
this project, special mention of Mr. Anil Agarwal, Mr. Dinesh, Mr Manish , Mr.Neeraj,
and Mr Mukesh, They have also provided me a valuable suggestions and excellence
guidance about this training, which proved very helpful to me to utilize my theoretical
knowledge in practical field.
Last but not the least my heartfelt love for my parents, whose constant support and
blessings helped me throughout this project. I am also grateful to my friends, to all known
and unknown individuals who have given me their constructive advise, educative
suggestion, encouragement, co-operation and motivation to prepare this report.
Institute of Business Management & Research, Chinchwad, Pune Page ii

DECLARATION
I Prashant Joshi, student of MMM (2009-11) studying at “Institute of Business

Management and Research”, Chinchwad, Pune. Formally declare that the project work
titled “A STUDY ON PREFERENCE AMONG ADVISORS TOWARDS MUTUAL
FUND” was carried out by me at Karvy Stock Broking Ltd, in partial fulfillment of
requirement for the award of the degree of Master’s in Marketing Management under
University of Pune.
This project was under taken as a part of academic curriculum according to the
University of Pune, by its Rules and Regulation.
Date:
Place: Pune Prashant Joshi
Institute of Business Management & Research, Chinchwad, Pune Page iii

Executive summary
According to the curriculum of University of Pune, we are required to do summer training

for two months in any company to get the practical knowledge of corporate world. This
project has been a great learning experience for me at the same time it gave me enough
scope to implement my analytical ability. This project as a whole can be summarized as
below.
Project title:-
The title of the project is “A STUDY ON PREFERENCE OF THE ADVISORS
TOWARDS MUTUAL FUND”
Objective:-
The objective of the project is to find out the preferences among financial advisiors
towards mutual fund investment. It also objects the preferences of advisors towards
KARVY
Scope:-
This project has a lot of scope. It will help the organization in many ways. An
organization may know, what are the preferences of their advisors and business associates
so they can work on that accordingly.
Research methodology:-
This project work is limited to the city Allahabad. The data provided by the organization
was 300 but out of that100 samples were randomly selected therefore the sample size is
100.
Findings:-
The findings of the research are:-
- The awareness among advisors is much more than as it was expected.
- The reason for not dealing in mutual funds is pay out factor.
- The advisors are having shortage of time to attend seminars.
Institute of Business Management & Research, Chinchwad, Pune Page iv

Limitations:-
The limitations of the research are:-
- The research is limited to the city Allahabad.
- Sample size was only 100 as, many of them were sub-brokers/business
associates of karvy and they are limited in number.
- The research process was a bit expensive and it was beared by me.
- Working of the office was also affecting research.
Conclusion:-
The conclusion is as follows.
- Due to higher returns & preferences of investors, the advisors are selling
mutual fund, but due to low pay out factor the preferences of advisors are
changing.
- KARVY Allahabad is not able to provide services as expected, due to lack of
staff.
- The awareness level among advisors is quite high.
Recommendation:-
Therefore it is recommended than, awareness of MF services provided by Karvy is also
quite high, but service part is lagging, so company needs proper marketing of their all
services by distribution of forms, collection of forms, arranging seminars etc.
Institute of Business Management & Research, Chinchwad, Pune Page v

TABLE OF CONTENTS
SR.NO CONTENTS PAGE NO
1 INTRODUCTION 1-2
3-18
2 ORGANIZATION PROFILE
19-45
3 INDUSTRY PROFILE
46-47
4 SCOPE OF WORK
48-50
5 OBJECTIVES
51-56
6 RESEARCH METHODOLOGY
57-72
7 DATA COLLECTION & ANALYSIS
73-74
8 FINDINGS
75-76
9 LIMITATIONS
77-78
10 RECOMMENDATIONS
79-80
11 CONCLUSIONS
81
12 BIBLIOGRAPHY
82-85
13 ANNEXURE
LIST OF TABLES
Institute of Business Management & Research, Chinchwad, Pune Page vi
TABLE TOPIC PAGE NO.
NO.
7.3.1 Age 59
7.3.2 Gender 59
7.3.3 Education 60
7.3.4 AMFI Certified 61
7.3.5 Investment option 62
7.3.6 Preferred Product 63
7.3.7 No. of customer 64

7.3.8 Payment period 65
7.3.9 Satisfaction level for Payment period 65
7.3.10 Tax saving investment 66
7.3.11 Favorite AMC 67
7.3.12 No entry load 68
7.3.13 Advisor of KARVY 69
7.3.14 Satisfaction level By service 70

7.3.15 Training and seminar 71
7.3.16 Work as employee 72
LIST OF FIGURES
Institute of Business Management & Research, Chinchwad, Pune Page vii

TABLE TOPIC PAGE
NO. NO.
7.1 Age and Gender 59
7.2 Education 60
7.3 AMFI Certified 61
7.4 Investment option 62
7.5 Preferred Product 63
7.6 No. of customer 64
7.7 Payment period & Satisfaction level for Payment period 65
7.8 Tax saving investment 66
7.9 Favorite AMC 67
7.10 No entry load 68
7.11 Advisor of KARVY 69
7.12 Satisfaction level By service 70
7.13 Training and seminar 71
7.14 Work as employee 72
LIST OF ABBREVIATIONS
Institute of Business Management & Research, Chinchwad, Pune Page viii

SL.NO. ACRONYM EXPANSION
1 MF Mutual Fund
2 AMC Asset Management Company
3 IPO Initial Public Offering
4 NFO New Fund Offer
5 DEMAT Dematerialized
6 R & T AGENT Registrar and Transfer agent
7 AUM Asset Under Management
8 NAV Net Asset Value
9 ELSS Equity Linked Saving Schemes
10 AMFI Association of Mutual Funds in India
11 PAN Permanent Account Number
12 STP Systematic Transfer Plan
13 SIP Systematic Investment Plan
14 SWP Systematic Withdrawal Plan
15 SEBI Security Exchange Board of India
Institute of Business Management & Research, Chinchwad, Pune Page ix

CHAPTER 1
INTRODUCTION
Institute of Business Management & Research, Chinchwad, Pune Page 1

1.1 INTRODUCTION
“A study on preference among advisors towards mutual fund”. It is an analytical research

based on various aspects associated with sales and promotion of Mutual Fund.
Company wants to penetrate deeper into the market. To achieve this goal successfully
company wants to know the effectiveness of its products & services.
For this purpose company wanted to study the market effectiveness of its product.
Company wants to know about awareness of its product, financial advisor’s opinion
regarding the product, service problem, etc.
Reason for selection of the topic :-

Customers are very important for any business. Financial business basically are sold
through certified advisors. So it is very important to know, what they want?, What are
their problems?
Making new advisors for selling the products is a bit costly, than stimulating old and dead
advisors. Its better to sort out the grievances & as it will automatically generate the
business.

CHAPTER 2
ORGANIZATIONAL
PROFILE

2.1 Introduction:
“Success is a journey, not a destination.”

If we look for examples to prove this quote then we can find many but there is none like
that of karvy. Back in the year 1981, five people created history by establishing karvy and
company which is today known as karvy, the largest financial service provider of India.
Success sutras of karvy:

The success story of karvy is driven by 8 success sutras adopted by it namely trust,
integrity, dedication, commitment, enterprise, hard work and team play, learning
and innovation, empathy and humility. These are the values that bind success with
karvy.
Vision of karvy:
To achieve & sustain market leadership, Karvy shall aim for complete customer
satisfaction, by combining its human and technological resources, to provide world class
quality services. In the process Karvy shall strive to meet and exceed customer's
satisfaction and set industry standards.
Mission statement:
“Our mission is to be a leading and preferred service provider to our

customers, and we aim to achieve this leadership position by building an
innovative, enterprising , and technology driven organization which will
set the highest standards of service and business ethics.”

The success ladder:
Fig no 1.1 success ladder
2.2 Company overview:

Karvy was established as karvy and company by five chartered accountants during the
year 1979-80, and then its work was confined to audit and taxation only. Later on it
diversified into financial and accounting services during the year 1981-82 with a capital
of Rs150000. It achieved its first milestone after its first investment in technology. Karvy
became a known name during the year 1985-86 when it forayed into capital market as
registrar.
Evolution of KARVY:
It is well said that success is a journey not a destination and we can see it being proved by
karvy. Under this section we will see that how this “karvy and company” of 1980 became
“karvy” of 2008. Karvy blossomed with the setting up of its first branch at Mumbai
during the year 1987-88. The turning point came in the year 1989 when it decided to enter
into one of the not only emerging rather potential field too i.e; stock broking. It added the
feather of stock broking into its cap. At the same time it became the member of
Hyderabad Stock Exchange through associate firm karvy securities ltd and then karvy
never looked back……..it went on adding services one after another, it entered into retail
stock broking in the year 1990. Karvy investor service centers were set up in the year
1992. Karvy which already enjoyed a wide network through its investor service centers,
entered into financial product distribution services in the year 1993. One year more and

karvy was now dealing into mutual fund services too in the year 1994 but it didn’t
stopped there, it stepped into corporate finance and investment banking in the year 1995.
Karvy’s strategy has always been being the first entrant in the market. Karvy again hit the
limelight by becoming the first registrar in the country to be awarded ISO 9002 in the
year 1997. In January 1998, Karvy became first Depository Participant in Andhra
Pradesh. An ISO 9002 Company, Karvy’s commitment to quality and retail reach has
made it an Integrated Financial Services Company .Then it stepped into the other most
happening sector i.e; IT enabled services by establishing its own BPO units and at a gap
of just 1 year it took the path of e-Business through its website www.karvy.com . Then it
entered into insurance services in the year 2001 with the launch of its retail arm “karvy-
the finapolis: your personal finance advisor”. Then in the year 2002 it launched its
PCG(Private Client Group) which looks after its High Networth Individuals .and
maintain their portfolio and provides them with other financial services. In the year 2003,
it commenced secondary debt and WDM trading.
It was a decade which saw many Indian companies going global…..so why the largest
financial service provider of India should lag behind? Hence, karvy launched “karvy
global services limited” after entering into a joint venture with Computershare, Australia
in the year 2004.the year 2004 also saw karvy entering into commodities marketing
through karvy comtrade.
Year 2005 saw Karvy establishing a separate branch for its insurance services under the
head “ karvy insurance broking ltd” and in the same year, after being impressed with the
rapid growth of karvy stock broking limited, PCG group of Hong Kong acquired 25%
stake at KSBL. In the year 2006, karvy entered into one of the hottest sector of present
time i.e real estate through Karvy realty& services (India) ltd. hence , we can see now
karvy being established as the lagest financial service provider of the country.
Today, company has 575 branch offices in 375 locations all over the India & overseas at
Dubai & New York. The company adds 5 new offices every month to the company’s ever
growing national network in every corner of the country. The company service over 25
million individual investors through 9000 trained & qualified staff, 225 corporate and
handle corporate disbursements that exceed Rs.5500 Crores.

WHERE KARVY STAND IN THE MARKET?
The landmarks achieved by Karvy very well define its success story. A company started
by five chartered accountants, named as karvy now turned into today’s karvy group, the
largest financial intermediary of India. But success didn’t came to karvy at a flow, the
hard work and dedication of its workforce made it what it is today.
Gradually it achieved the following landmarks and now it has became what we call the
karvy group, now it is:
1. Largest independent distributor for financial products.

2. Amongst the top 3 stock broker.
3. Among the top 3 depository participants.
4. Largest network of branches & business associates.
5. ISO 9002 certified operations by DNV.
6. Amongst top 10 investment bankers.
7. Adjudged as one of the top 50 IT users in India by MIS south Asia.
8. Full- fledged IT driven operation.
9. India’s no.1 registrar & securities transfer agent.
KARVY is a legendary name in financial services, Karvy’s credit is defined by its

mission to succeed, passion for professionalism, excellent work ethics and customer
centric values.
Today KARVY is well known as a premier financial services enterprise, offering a broad
spectrum of customized services to its clients, both corporate and retail. Services that
KARVY constantly upgrade and improve are because of company’s skill in leveraging
technology. Being one of the most techno-savvy organizations around helps company to
deliver even more cost effective financial solutions in the shortest possible time.
What bears ample testimony to Karvy’s success is the faith reposed in company by valued
investors and customers, all across the country. Indeed, with Karvy’s wide network
touching every corner of the country, even the most remote investor can easily access
Karvy’s services and benefit from company’s expert advice.
Now karvy group consists of 10 highly renowned entities which are as
follow:
2.3 KARVY SERVICES – AN OVERVIEW
1. Stock broking
2. Demat services
3. Investment product distribution
4. Investment advisory services
5. Corporate finance & Merchant banking
6. Insurance
7. Mutual fund services
8. IT enabled services
9. Registrars & Transfer agents
10. Loans
Company is dealer of following Fixed Deposits
PUBLIC SECTOR
Sl. No. Company Name
1 HUDCO
2 Sardar Sarovar Narmada Nigam Ltd.
3 Tamilnadu Power Finance Corporation Ltd.
4 NTPC
[Public Sector FD with which Karvy deals]
NON BANKING FINANCE COMPANIES

1 Ashok Leyland Finance Ltd.
2 Bajaj Auto Finance Ltd.
3 Birla Home Finance Ltd.
4 Cholamandalam Investment & Finance Co. Ltd.
5 Escorts Finance Ltd.
6 First Leasing Company of India Ltd.
7 IDBI Suvidha
8 Nicco Uco Alliance Credit Ltd.

[FD of Non Banking Finance Companies with which Karvy deals]
HOUSING FINANCE COMPANIES

1 Can Fin Homes Ltd.
2 Dewan Housing Finance Corporation Ltd.
3 Gruh Finance Ltd.
4 HDFC Ltd.
5 PNB Housing Finance Ltd.
6 Sundaram Home Finance Ltd.
[FD of Housing Finance Companies with which Karvy deals]
MANUFACTURING COMPANIES
1 A P Paper Mills Ltd.
2 Amtek India Ltd.
3 Atul Ltd.
4 Ballarpur Industries Ltd.
5 Chambal Fertilizers & Chemicals Ltd.
6 Escort Ltd.
7 Greaves Ltd.
8 Gujarat Alkalies & Chemicals Ltd.
9 Indian Express
10 Ind-Swift Ltd.
11 JK Industries Ltd.
12 Jindal Steel & Power Ltd.
13 Sound Craft Industries Ltd.
14 Supreme Industries Ltd.
15 Zuari Industries Ltd.
[ FD of Manufacturing Companies with which Karvy deals]
Karvy is dealer of following bonds
 RBI Saving Bonds

 NHAI Bonds
 REC Bonds

List of AMC’s associated with KARVY:
1 Alliance Mutual Fund

2 Birla Mutual Fund
3 Bank of Baroda Mutual Fund
4 Can Bank Mutual Fund
5 Chola Mutual Fund
6 Deutsche Mutual Fund
7 DSP Merrill Lynch Mutual Fund
8 Franklin Templeton Investments
9 GIC Mutual Fund
10 HDFC Mutual Fund
11 HSBC Mutual Fund
12 IL & FS Mutual Fund
13 JM Mutual Fund
14 Kotak Mutual Fund
15 LIC Mutual Fund
16 Punjab National Bank Mutual Fund
17 Prudential ICICI Mutual Fund
18 Principal Mutual Fund
19 Reliance Mutual Fund
20 State Bank of India Mutual Fund
21 Standard Chartered Mutual Fund
22 Sundaram Mutual Fund
23 SUN F&C Mutual Fund
24 Tata Mutual Fund
[List of MF Companies with which Karvy deals]
A SEBI Category 1 Registrar, So far, Karvy has handled over 675 ISSUES as Registrars
to public issues processed over 52 million applications and is servicing over 16 million
investors from various locations spread over 205 clients.
2.4 Organization structure of karvy:

talking about the organization structure of karvy, we have the board of directors as the
supreme governing body , the chairman being Mr. C Parthasarthy, Mr. M Yugandhar as
the managing director, Mr M S Ramakrishna and Mr. Prasad v. Potluri as directors.
The board of directors head the karvy group, karvy computershares limited, karvy
investors services ltd., karvy comtrade, karvy stock broking ltd., and karvy global
services ltd.
Karvy group being the flagship company looks after the functional departments such as
corporate affairs, group human resources, finance & accounting, training & development,
technology services and corporate quality.
Karvy computershare private limited facilitates mutual fund services, share registry and
issue registry whereas merchant banking is looked after by karvy investor services ltd.
Karvy stock broking ltd heads its another branch too ie. Karvy insurance broking ltd. The
services offered by KSBL are: stock broking, depository, research, distribution, personal
client group and institutional desk. And finally the BPO services are managed by karvy
global services ltd. Summarizing it in a diagram, it can be presented as:

Spectrum of services offered by karvy:
Karvy being the top registrar and transfer agent, functions as registrar in most of the
issues in the country. Talking about the mutual fund services offered by karvy, we can get
the products of 33 AMCs over here. it deals in both closed ended funds as well as open
ended too. Now one must be thinking why to get the mutual funds from karvy instead of
getting it directly from AMCs? we have great reasons for it: the first one being ; if we
avail the services of karvy then we can get the information about all the AMCs and their
products at a single place along with expert recommendations whereas at an AMC we can
get information about the products of that specific AMC only. And the second being wide
network of karvy. Nowadays we can find karvy offices at remote areas too.
Along with these, karvy is very well handling the role of depository participant. Being
registered with both the depositories i.e.; NSDL (national securities depository ltd) and
CDSL (central depository services ltd), karvy can have access to both. Its wide network
also facilitates it in distribution of retail financial products.
Karvy believes in being updated always. So it is always ready to use latest technologies
so that its clients always be in touch with the latest happenings along with karvy. It offers
e-business through internet through its website: www.karvy.com . Other than it, it also
provides its various services through SMSes.
Karvy’s services are not limited to its investors only rather its offerings are for its
corporate clients and distributors too. it is very well aware of the fact that in this era of
neck to neck competition, we cant ignore any of the aspects of our business….so there’s a
offering for everybody…everyone’s welcome at karvy.
Why should investors choose for karvy?
Excellence is next to nothing….and here at karvy everybody tries their best to offer
excellent services to its clientele through its offerings maintaining the karvy culture which
includes:
1. Controlled and low cost service culture: karvy is there to serve its client at the
minimum possible cost. it controls cost by its various cost- cutting techniques and
minimization of avoidable costs.

2. Large volume processing capability: being the largest financial service provider in the
country, it has the unique distinction of operating its activities on a large scale which
benefits all the parties cordially.
3. Adherence to strict time schedule: karvy knows that time is money and tries it best to
finish the task within the stipulated time schedule.
4. Expertise in coordinating multi-location responses: karvy has got a wide network and
hence one can find its branches at most of the places in India. Thus it enjoys its presence
everywhere and coordinates among itself in solving the queries and in responding to any
situation.
5.Expertise in managing independent entities such as banks, post-office etc.: the work
culture of karvy and the ethics followed inside karvy makes its workforce compatible
with everybody, so the karvy people establishes good coordination with independent
entities too.
6. Pooling of group resources: karvy group consists of eight subsidiaries, so it can easily
pool up its resources for accomplishment of its goals, whenever needed. The groups can
help each other whenever there are peaks and lows, and even in the case when they have
huge targets just as we saw few years back, Tata group pooling its resources to acquire
Corus.
How karvy achieved it?
The core competency of karvy lies in the following points due to which it enjoys a
competitive edge over its competitors. The following culture adopted by karvy makes it
all time favorite among its clientele:
1. Professionally managed by qualified and trained manpower.
2. Uniquely structured in-house software and hardware department
3. Query handling within 48 hrs.
4. Strong secretarial, accounting and audit systems.
5. Unique work culture of working 7 days a week in 3 shifts.
6. Unmatched network spreading all over India.
Clientele of karvy:
Karvy’s culture has helped karvy in achieving such a distinct position in the market where
it can boast of its huge client base. Be it a retail investor investing Rs. 500 in a SIP in
Reliance mutual fund or be it the largest corporate house of the country: Reliance
industries- everybody is heading towards karvy for their wealth maximization, lets have a
look at the clientele of karvy :
According to the datas published in year 2009, karvy stock broking ltd. Operates through
more than 12000 terminals, more than 300000 accounts are maintained and commands
over 3.14% market share of NSE. The distribution services has access to more than Rs.
40 billion Assets Under Management. Karvy being a depository participant with both
NSDL and CDSL, manages more than 700000 accounts from more than 380 locations.
Talking about the registry services, it manages over 750 public/ right issues.at the same
time, it is managing over 16 million portfolios as registrar.
If we took a look at some of the top corporate houses availing the services of karvy then
we have: Reliance, IOC, IDBI,LIC, Hindustan Unilever, Principal Mutual Fund,
Duetsche Mutual Fund, Yogokawa, Marico Industries, Patni Computers, Morgan Stanley,
Glenmark, CRISIL, 3M, Kotak Mahindra Bank, Bharti Televenture, Infosys
Technologies, Wipro, Infotech, IPCL,TATA consultancy services, UTI mutual fund etc.
Thus in total karvy serves over 16 million investors and 300 corporates.
Now, as the project was carried on in Allahabad, so there is a special reference to
working of karvy at Northern zone and mutual funds in particular.
KARVY at Northern zone:
Karvy stock Broking Ltd has its Zonal office in Lucknow, which regulates its various
Branches in Allahabad, Varanasi, Mirzapur, Gorakhpur, Azamgarh, Deoria, Ghazipur,
Gonda, Jaunpur, Kanpur, Mughal Sarai, Renukoot etc.
Presently Mr. Abhinav Prasad is heading the Northern zone (Distribution).

Karvy is a member of three stock exchanges of India:
National Stock Exchange (NSE),
Bombay Stock Exchange (BSE) and
Hyderabad Stock Exchange (HSE).
Hierarchical Structure in diagram:

The above diagram shows the hierarchy of Karvy stock broking ltd. It can be easily
depicted from the diagram that the Northern regional head (presently Mr. Abhinav
Prasad) is the supreme in the northern region, under whom the various zonal heads
operate and under these zonal heads, the branch heads operate. Between each level o the
hierarchy, there exists a coordinator, who acts as the facilitator between the different
heads.
Karvy at Allahabad:
Now if we look at karvy’s branch offices at Allahabad, then there exist two branches of
karvy , which are as follow:
1. Civil Lines.
2. Naini.
Structure according to the Products offered by Karvy:
REGIONAL
REGIONAL
HEADS
HEADS
Deposit
Deposit Mercha
Mercha
Institute of
Mutual
Business Management & Research, Chinchwad,
Insurance
Insurance ory
Pune nt
nt &
Debt &
Page 15
Mutual Realty
broking comm Stock ory Debt PMS
broking inv.bank
inv.bank
funds
funds broking particip
particip divisio
divisio
oditie broking
PRODUCT
PRODUCT ant nning
ing
ant
s HEADS
HEADS
KARVY Mutual Fund Services:
Mutual funds have servings for everybody. Whichever type of investor you are, you will
surely get a mutual fund meeting your requirements. But investing in mutual funds is no
child’s play therefore karvy mutual fund advisory services is there to guide in each and
every step of investment in mutual funds so that the dream of wealth creation doesn’t
turns into nightmares. Its offerings includes: products of all the 33 major AMCs, research
report about all the existing funds as well as NFOs, customized mutual fund portfolios
designed for individual as well as institutional customers, it not only design the portfolios
rather it offers continuous portfolio revision too depending on changing market outlook
and evolving trends, it further gives access to its online consolidated portfolio statement.
Thus karvy with its various offerings makes the investor feel safe in this dynamic
environment of the Indian financial market.

Karvy Computershare mutual fund services offers investors services, distributor services
and client services. It can be said that karvy is dedicated towards providing quality
service to all these three facets of the investment process.
Karvy being an intermediary is well registered with the Association of Mutual Funds of
India (AMFI). KARVY has got the registration no [ARN 0018] for mutual funds, which
is mentioned on every form. After the procurement of forms from various AMCs, the
forms are passed on to its various zonal and branch offices (as per their requirements) and
then further processing is done either directly or through sub-brokers.
Karvy operates through its sub- brokers, associates and its excellent pool of own direct
employees. The employees are offered salary by karvy whereas the sub- brokers and
associates get certain commission. Karvy has 2 branches and 1 franchise in the city
Allahabad. All the work of mutual funds is regulated from Allahabad branch.
The main source of earning for KARVY is the brokerage offered by the various AMCs
known as pay-in. The amount offered may vary from AMC to AMC. Also, the
franchisees have to pay a certain amount every month. Now karvy also pay a certain
amount to the sub brokers and associates known as pay-out. The payout is decided
according to the procurement done by them.
Recruitment:
Karvy has an enviable pool of dynamic employees. Its people power has a great
contribution in making it the No. 1 financial intermediary. All the employees of karvy
dealing in mutual funds have to go through AMFI test. The recruitment process is at par
with the industry standards, it is mostly done through campus recruitment from reputed
B- schools. Other than that, it also recruits through direct interviews and GDs as per their
requirement.
Karvy never compromises with quality that’s the reason it is excelling by providing
quality services to all the investors, clients, AMCs etc. associated with it.

CHAPTER 3
INDUSTRY PROFILE
MUTUAL FUNDS

It’s all about mutual funds:
Mutual funds: A mutual fund is a professionally-managed firm of collective investments

that pools money from many investors and invests it in stocks, bonds, short-term money
market instruments, and/or other securities.in other words we can say that A Mutual Fund
is a trust registered with the Securities and Exchange Board of India (SEBI), which pools
up the money from individual / corporate investors and invests the same on behalf of the
investors /unit holders, in equity shares, Government securities, Bonds, Call money
markets etc., and distributes the profits.
The value of each unit of the mutual fund, known as the net asset value (NAV), is mostly
calculated daily based on the total value of the fund divided by the number of shares
currently issued and outstanding. The value of all the securities in the portfolio in
calculated daily. From this, all expenses are deducted and the resultant value divided by
the number of units in the fund is the fund’s NAV.
NAV = Total value of the fund……………….
No. of shares currently issued and outstanding
Advantages of a MF
– Mutual Funds provide the benefit of cheap access to expensive stocks
– Mutual funds diversify the risk of the investor by investing in a basket of

assets
– A team of professional fund managers manages them with in-depth

research inputs from investment analysts.
– Being institutions with good bargaining power in markets, mutual funds

have access to crucial corporate information, which individual investors
cannot access.
3.1 History of the Indian mutual fund industry:
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
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the Reserve
Bank of India and functioned under the Regulatory and administrative 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 Canbank 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.47,004 crores.
Third Phase – 1993-2003 (Entry of Private Sector Funds)

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.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the
SEBI (Mutual Fund) Regulations 1996. As at the end of January 2003, there were 33
mutual funds with total assets of Rs. 1,21,805 crores.
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 January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other
schemes
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. consolidation and
growth. As at the end of September, 2004, there were 29 funds, which manage assets of
Rs.153108 crores under 421 schemes.
3.2 Categories of mutual funds:
Mutual funds can be classified as follow:
 Based on their structure:
i. Open-ended funds: Investors can buy and sell the units from the fund, at any point
of time.
ii. Close-ended funds: These funds raise money from investors only once. Therefore,
after the offer period, fresh investments cannot be made into the fund. If the fund is
listed on a stocks exchange the units can be traded like stocks (E.g., Morgan
Stanley Growth Fund). Recently, most of the New Fund Offers of close-ended
funds provided liquidity window on a periodic basis such as monthly or weekly.
Redemption of units can be made during specified intervals. Therefore, such funds
have relatively low liquidity.
 Based on their investment objective:
Equity funds: These funds invest in equities and equity related instruments. With
fluctuating share prices, such funds show volatile performance, even losses.
However, short term fluctuations in the market, generally smoothens out in the
long term, thereby offering higher returns at relatively lower volatility. At the
same time, such funds can yield great capital appreciation as, historically, equities
have outperformed all asset classes in the long term. Hence, investment in equity
funds should be considered for a period of at least 3-5 years. It can be further
classified as:
i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is
tracked. Their portfolio mirrors the benchmark index both in terms of composition and
individual stock weightages.
ii) Equity diversified funds- 100% of the capital is invested in equities spreading across
different sectors and stocks.
iii) Dividend yield funds- it is similar to the equity diversified funds except that they
invest in companies offering high dividend yields.
iv) Thematic funds- Invest 100% of the assets in sectors which are related through some
theme.
e.g. -An infrastructure fund invests in power, construction, cements sectors etc.
v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector
fund will invest in banking stocks.
vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.

Balanced fund: Their investment portfolio includes both debt and equity. As a result, on
the risk-return ladder, they fall between equity and debt funds. Balanced funds are the
ideal mutual funds vehicle for investors who prefer spreading their risk across various
instruments. Following are balanced funds classes:
i) Debt-oriented funds -Investment below 65% in equities.
ii) Equity-oriented funds -Invest at least 65% in equities, remaining in debt.
Debt fund: They invest only in debt instruments, and are a good option for investors
averse to idea of taking risk associated with equities. Therefore, they invest exclusively in
fixed-income instruments like bonds, debentures, Government of India securities; and
money market instruments such as certificates of deposit (CD), commercial paper (CP)
and call money. Put your money into any of these debt funds depending on your
investment horizon and needs.
i. Liquid funds- These funds invest 100% in money market instruments, a large
portion being invested in call money market.
ii. Gilt funds ST- They invest 100% of their portfolio in government securities of and
T-bills.Floating rate funds - Invest in short-term debt papers. Floaters invest in
debt instruments which have variable coupon rate.
iii. Arbitrage fund- They generate income through arbitrage opportunities due to mis-
pricing between cash market and derivatives market. Funds are allocated to
equities, derivatives and money markets. Higher proportion (around 75%) is put in
money markets, in the absence of arbitrage opportunities.
iv. Gilt funds LT- They invest 100% of their portfolio in long-term government
securities.
v. Income funds LT- Typically, such funds invest a major portion of the portfolio in
long-term debt papers.
vi. MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an
exposure of 10%-30% to equities.
vii. FMPs- fixed monthly plans invest in debt papers whose maturity is in line with
that of the fund.

3.3 Investment strategies:
1. Systematic Investment Plan: under this a fixed sum is invested each month on a fixed
date of a month. Payment is made through post dated cheques or direct debit facilities.
The investor gets fewer units when the NAV is high and more units when the NAV is
low. This is called as the benefit of Rupee Cost Averaging (RCA)
2. Systematic Transfer Plan: under this an investor invest in debt oriented fund and
give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the
same mutual fund.
3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual fund
then he can withdraw a fixed amount each month.
Risk v/s. return:

3.4 Working of a Mutual fund:
The entire mutual fund industry operates in a very organized way. The investors, known
as unit holders, handover their savings to the AMCs under various schemes. The
objective of the investment should match with the objective of the fund to best suit the
investors’ needs. The AMCs further invest the funds into various securities according to
the investment objective. The return generated from the investments is passed on to the
investors or reinvested as mentioned in the offer document.
3.5 Regulatory Authorities:
To protect the interest of the investors, SEBI formulates policies and regulates the mutual
funds. It notified regulations in 1993 (fully revised in 1996) and issues guidelines from time to
time.
SEBI approved Asset Management Company (AMC) manages the funds by making
investments in various types of securities. Custodian, registered with SEBI, holds the securities
of various schemes of the fund in its custody.
According to SEBI Regulations, two thirds of the directors of Trustee Company or board of
trustees must be independent.
The Association of Mutual Funds in India (AMFI) reassures the investors in units of mutual
funds that the mutual funds function within the strict regulatory framework. Its objective is to
increase public awareness of the mutual fund industry. AMFI also is engaged in upgrading
professional standards and in promoting best industry practices in diverse areas such as
valuation, disclosure, transparency etc.

Documents required (PAN mandatory):
Proof of identity :
1.photo PAN card
2. In case of non-photo PAN card in addition to copy of PAN card any one of the following:
driving license/passport copy/ voter id/ bank photo pass book.
Proof of address (any of the following) :latest telephone bill, latest electricity bill, Passport,
latest bank passbook/bank account statement, latest Demat account statement, voter id, driving
license, ration card, rent agreement.
Offer document:
An offer document is issued when the AMCs make New Fund Offer(NFO). It’s advisable to
every investor to ask for the offer document and read it before investing. An offer document
consists of the following:
Standard Offer Document for Mutual Funds (SEBI Format)
Summary Information
Glossary of Defined Terms
Risk Disclosures
Legal and Regulatory Compliance
Expenses
Condensed Financial Information of Schemes
Constitution of the Mutual Fund
Investment Objectives and Policies
Management of the Fund
Offer Related Information.
Key Information Memorandum: a key information memorandum, popularly known as KIM,
is attached along with the mutual fund form. And thus every investor get to read it. Its contents
are:
1. Name of the fund.
2. Investment objective
3. Asset allocation pattern of the scheme.
4. Risk profile of the scheme
5. Plans & options
6. Minimum application amount/ no. of units
7. Benchmark index
8. Dividend policy
9. Name of the fund manager(s)
10. Expenses of the scheme: load structure, recurring expenses
11. Performance of the scheme (scheme return v/s. benchmark return)
12. Year- wise return for the last 5 financial year.
3.6 Distribution channels:
Mutual funds posses a very strong distribution channel so that the ultimate customers doesn’t
face any difficulty in the final procurement. The various parties involved in distribution of
mutual funds are:
1. Direct marketing by the AMCs: the forms could be obtained from the AMCs directly.
The investors can approach to the AMCs for the forms. some of the top AMCs of India are;
Reliance ,Birla Sunlife, Tata, SBI magnum, Kotak Mahindra, HDFC, Sundaram, ICICI,
Mirae Assets, Canara Robeco, Lotus India, LIC, UTI etc. whereas foreign AMCs include:
Standard Chartered, Franklin Templeton, Fidelity, JP Morgan, HSBC, DSP Blackrock, etc.
2. Broker/ sub broker arrangements: the AMCs can simultaneously go for broker/sub-
broker to popularize their funds. AMCs can enjoy the advantage of large network of these
brokers and sub brokers.eg: KARVY being the top financial intermediary of India has the
greatest network. So the AMCs dealing through KARVY has access to most of the
investors.
3. Individual agents, Banks, NBFC: investors can procure the funds through individual
agents, independent brokers, banks and several non- banking financial corporations too,
whichever he finds convenient for him.
3.7 Costs associated:

Expenses:
AMCs charge an annual fee, or expense ratio that covers administrative expenses, salaries,
advertising expenses, brokerage fee, etc. A 1.5% expense ratio means the AMC charges
Rs1.50 for every Rs100 in assets under management. A fund's expense ratio is typically to the
size of the funds under management and not to the returns earned. Normally, the costs of
running a fund grow slower than the growth in the fund size - so, the more assets in the fund,
the lower should be its expense ratio

Loads:
Entry Load/Front-End Load (0%)- Its the commission charged at the time of buying the
fund to cover the cost of selling, processing etc. As per new rules of SEBI, there will no entry
load for purchasing Mutual Fund.
Exit Load/Back- End Load (0.25-2.25%)- It is the commission or charged paid when an
investor exits from a mutual fund, it is imposed to discourage withdrawals. It may reduce to
zero with increase in holding period.
3.8 Concept of benchmarking for performance evaluation:
Every fund sets its benchmark according to its investment objective. The funds performance is
measured in comparison with the benchmark. If the fund generates a greater return than the
benchmark then it is said that the fund has outperformed benchmark , if it is equal to
benchmark then the correlation between them is exactly 1. And if in case the return is lower
than the benchmark then the fund is said to be underperformed.
Some of the benchmarks are:
1.Equity funds: market indices such as S&P CNX nifty, BSE100, BSE200, BSE-PSU, BSE
500 index, BSE bankex, and other sectoral indices.
2.Debt funds: Interest Rates on Alternative Investments as Benchmarks, I-Bex Total Return
Index, JPM T-Bill Index Post-Tax Returns on Bank Deposits versus Debt Funds.
3. Liquid funds: Short Term Government Instruments’ Interest Rates as Benchmarks, JPM T-
Bill Index
To measure the fund’s performance, the comparisons are usually done with:
I) With a market index.
ii) Funds from the same peer group.
iii) Other similar products in which investors invest their funds.
3.9 Financial planning for investors (ref. to mutual funds):

Investors are required to go for financial planning before making investments in any mutual
fund. The objective of financial planning is to ensure that the right amount of money is
available at the right time to the investor to be able to meet his financial goals. It is more than
mere tax planning.

Steps in financial planning are:
Asset allocation.
Selection of fund.
Studying the features of a scheme.
In case of mutual funds, financial planning is concerned only with broad asset allocation,
leaving the actual allocation of securities and their management to fund managers. A fund
manager has to closely follow the objectives stated in the offer document, because financial
plans of users are chosen using these objectives.
Why has it become one of the largest financial instruments?
If we take a look at the recent scenario in the Indian financial market then we can find the
market flooded with a variety of investment options which includes mutual funds, equities,
fixed income bonds, corporate debentures, company fixed deposits, bank deposits, PPF, life
insurance, gold, real estate etc. all these investment options could be judged on the basis of
various parameters such as- return, safety convenience, volatility and liquidity. measuring
these investment options on the basis of the mentioned parameters, we get this in a tabular
form
Return Safety Volatility Liquidity Convenienc

e
Equity High Low High High Moderate
Bonds Moderate High Moderate Moderate High
Co. Moderate Moderate Moderate Low Low
Debentures
Co. FDs Moderate Low Low Low Moderate
Bank Low High Low High High
Deposits
PPF Moderate High Low Moderate High
Life Low High Low Low Moderate
Insurance
Gold Moderate High Moderate Moderate Gold
Real Estate High Moderate High Low Low
Mutual High High Moderate High High
Funds

We can very well see that mutual funds outperform every other investment option. On three
parameters it scores high whereas it’s moderate at one. comparing it with the other options, we
find that equities gives us high returns with high liquidity but its volatility too is high with low
safety which doesn’t makes it favourite among persons who have low risk- appetite. Even the
convenience involved with investing in equities is just moderate.
Now looking at bank deposits, it scores better than equities at all fronts but lags badly in the
parameter of utmost important ie; it scores low on return , so it’s not an happening option for
person who can afford to take risks for higher return. The other option offering high return is
real estate but that even comes with high volatility and moderate safety level, even the liquidity
and convenience involved are too low. Gold have always been a favourite among Indians but
when we look at it as an investment option then it definitely doesn’t gives a very bright picture.
Although it ensures high safety but the returns generated and liquidity are moderate. Similarly
the other investment options are not at par with mutual funds and serve the needs of only a
specific customer group. Straightforward, we can say that mutual fund emerges as a clear
winner among all the options available.
The reasons for this being:
I) Mutual funds combine the advantage of each of the investment products: mutual fund is
one such option which can invest in all other investment options. Its principle of diversification
allows the investors to taste all the fruits in one plate. just by investing in it, the investor can
enjoy the best investment option as per the investment objective.
II) Dispense the shortcomings of the other options: every other investment option has more
or les some shortcomings. Such as if some are good at return then they are not safe, if some are
safe then either they have low liquidity or low safety or both….likewise, there exists no single
option which can fit to the need of everybody. But mutual funds have definitely sorted out this
problem. Now everybody can choose their fund according to their investment objectives.
III) Returns get adjusted for the market movements: as the mutual funds are managed by
experts so they are ready to switch to the profitable option along with the market movement.
Suppose they predict that market is going to fall then they can sell some of their shares and
book profit and can reinvest the amount again in money market instruments.
IV) Flexibility of invested amount: Other then the above mentioned reasons, there exists one
more reason which has established mutual funds as one of the largest financial intermediary
and that is the flexibility that mutual funds offer regarding the investment amount. One can
start investing in mutual funds with amount as low as Rs. 500 through SIPs and even Rs. 100
in some cases.
Most popular stocks among fund managers (as on 30th April 2010)
Company Name no. of funds

Reliance industries limited 244
Larsen & toubro limited 206
ICICI bank limited 202
State bank of India 188
Bharti airtel limited 184
Bharat heavy electricals limited 200
Reliance communication ventures
ltd 169
Infosys technologies ltd 159
Oil& Natural gas corporation ltd. 153
ITC ltd. 143
We can easily point out that reliance industries limited emerges as a true winner over here
attracting the attention of almost244 managers well followed by Larsen & toubro ltd ICICI
bank ltd and Bharat heavy electricals ltd. The other companies succeeding in getting a place at
top 10 are SBI, Bharti airtel limited, reliance communications, Infosys technologies limited,
ONGC and at last ITC ltd.

What are the most lucrative sectors for mutual fund managers?
This is a question of utmost interest for all the investors even for those who don’t invest in
mutual funds. Because the investments done by the MFs acts as trendsetters. The investments
made by the fund managers are used for prediction. Huge investments assure liquidity and
reflects appositive picture whereas tight investment policy reflects crunch and investors may
look forward for a gloomy picture.
Their investments show that which sector is hot? And will set the market trends. The expert
management of the funds will always look for profitable and high paying sectors. So we can
have a look at most lucrative sectors to know about the recent trends:
(source: moneycontrol.com; 20.05.09)
Sector name No. of MFs betting on it

automotive 255
banking & financial 196
services
cement & construction 237
consumer durables 51
conglomerates 218
chemicals 259
consumer non durables 146
engineering & capital 317
goods
food & beverages 175
information technology 284
media & entertainment 218
Manufacturing 259
metals& mining 275
Miscellaneous 250
oil & gas 290
Pharmaceuticals 250
Services 200
Telecom 264
Tobacco 150
Utility 225

From the above data collected we can say that engineering & capital goods sector has emerged
as the hottest as most of the funds are betting on it. We can say that this sector is on boom and
presents a bright picture. Other than it other sectors on height are oil & gas, telecom, metals &
mining and information technology. Sectors performing average are automotive, cement &
construction, chemicals, media & entertainment, manufacturing, miscellaneous,
pharmaceuticals and utility. The sectors which are not so favourite are banking & financial
services, conglomerates, consumer non- durables, food & beverages, services and tobacco.
And the sector which failed to attract the fund managers is consumer durables with just 51
funds betting on it.
Thus this analysis not only gives a picture of the mindset of fund managers rather it also
reflects the liquidity existing in each of the sectors. It is not only useful for investors of mutual
funds rather the investors of equity and debt too could take a hint from it. Asset allocation by
fund managers are based on several researches carried on so, it is always advisable for other
investors too take a look on it. It can be further presented in the form of a graph as follow:
Systematic investment plan (in details)
We have already mentioned about SIPs in brief in the previous pages but now going into
details, we will see how the power of compounding could benefit us. In such case, every small
amounts invested regularly can grow substantially. SIP gives a clear picture of how an early

and regular investment can help the investor in wealth creation. Due to its unlimited
advantages SIP could be redefined as “a methodology of fund investing regularly to benefit
regularly from the stock market volatility. In the later sections we will see how returns
generated from some of the SIPs have outperformed their benchmark. But before moving on to
that lets have a look at some of the top performing SIPs and their return for 11 months
Scheme Amount NAV NAV Date Total Amount

Reliance diversified power sector
retail 1000 81.67 21/7/2010 11303.80
Reliance regular savings equity 1000 45.29 21/7/2010 11377.95
principal global opportunities
fund 1000 75.07 21/7/2010 11201.93
DWS investment opportunities
fund 1000 37.97 21/7/2008 11297.05
BOB growth fund 1000 51.24 21/7/2010 11228.25
In the above chart, we can see how if we start investing Rs.1000 per month then what return
we’ll get for the total investment of Rs. 11000. There is reliance Regular savings equity growth
plan giving the maximum returns of Rs. 1377.95 per year which comes to 16.88% roughly.
Next we can see if anybody would have undertaken the SIP in Reliance diversified power
sector fund would have got returns of app. 16.58%. We can see BOB growth fund, DWS
investment opportunities and Principal fund giving returns of 15.99%, 16.88%, and 15.64%
respectively which is greater than any other monthly investment options. However these
returns were only for the period for 11 months & therefore the returns were not much. Market
generally gives better returns in long term. Thus we can easily make out how SIP is beneficial
for us. Its hassle free, it forces the investors to save and get them into the habit of saving. Also
paying a small amount of Rs. 1000 is easy and convenient for them, thus putting no pressure
on their pockets.

INDUSTRY DETAILS
Following are list of Mutual Fund companies in India.
Sr. No. Mutual Fund Name No. of
Schemes
1 Alliance Mutual Fund 36
2 Benchmark Mutual Fund 5
3 Birla Mutual Fund 74
4 Bank of Baroda Mutual Fund 17
5 Can Bank Mutual Fund 25
6 Chola Mutual Fund 45
7 Deutsche Mutual Fund 40
8 DSP Merrill Lynch Mutual Fund 40
9 Escorts Mutual Fund 15
10 Franklin Templeton Investments 130
11 GIC Mutual Fund 5
12 HDFC Mutual Fund 79
13 HSBC Mutual Fund 32
14 IL & FS Mutual Fund 43
15 ING Vysya Mutual Fund 55
16 JM Mutual Fund 55
17 Kotak Mutual Fund 56
18 LIC Mutual Fund 35
19 Morgan Stanley Mutual Fund 1
20 Punjab National Bank Mutual Fund 4
21 Prudential ICICI Mutual Fund 124
22 Principal Mutual Fund 68
23 Reliance Mutual Fund 74
24 Sahara Mutual Fund 12
25 State Bank of India Mutual Fund 59
26 Standard Chartered Mutual Fund 100
27 Sundaram Mutual Fund 52
28 SUN F&C Mutual Fund 1
29 Tata TD Mutual Fund 100
30 Taurus Mutual Fund 9
31 Unit Trust of India 42
32 UTI Mutual Fund 66
[Mutual Funds in India]

COMPETITORS DETAILS
1. Bajaj Capital
It was established in 1964 at Delhi. In 1965 it innovates a new financial instrument

‘Companies Fixed Deposits’ and becomes the first company to raise Fixed Deposits. The
objective of company is to provide professional guidance to investors on where, when and
how to invest and to assist the corporate sector in its resource raising activities. Bajaj
Capital became the first company to set up ‘Investment Centers’ all over India for this
purpose. Today, Bajaj Capital has 90 offices in over 40 important Indian Cities and has a
team of around 500 employees nationwide.
Services provided
 Merchant banking
 Buying and Selling of Money Market Investments
 Distribution of financial products
 Investment Advisory Service
» Company fixed deposits

» Bonds
» Mutual funds
» Life insurance
» General insurance
» Pension schemes
» Post office schemes
» Tax saving schemes
» Insurance linked investment schemes
» Initial public offerings
» Housing loans
» NRI schemes
» Car insurance
 Financial Planning
» Investment planning
» Retirement planning
» Insurance planning
» Children's future planning
» Tax planning
» Short-term cash flow planning

2.MCS Ltd.
It is established in 1985 in Delhi. It is one of the largest Data Processing House employing
more than 600 people.
MCS Ltd. has 8 branches all over India

Volumes Handled
 Share registry activities for over 100 corporate servicing over 10 million investors.
 Mutual fund operations for 25 funds, servicing over 4.5 million investors.
 Billing & settlement plan for Indian operations of IATA Geneva for 1.2 million tickets
per annum covering (26 airlines & over 1200 agents).
Services Offered:
 Registrars and Transfer Agents

 Registrars to IPO’s /Right Issues
 Registrars to Open Offers
 Registrars to Mutual Funds
 Data Processing for Airlines
 Print Shop Services
MCS is a major player in these activities in the Country with a market share of about 25%.
MCS today provides these services to over 140 Corporate and Mutual Funds for a total
investor base of 15 million.
3. N.J.India Investments Pvt. Ltd.
NJ India Invest (formerly known as NJ Capital stocks) was started in 1994 to cater to the
growing financial services sector. NJ India Invest evolved out as a client focused need based
investment advisory firm. NJ regards mutual fund as one of the best investment avenue
available to satisfy any kind of investment need.
NJ India Investment had over INR 5,050 Crores of mutual fund assets under advice with a
wide presence in over 130 locations in 22 states in India. The numbers are reflections of the

trust, commitment and value that NJ shares with its clients.
4. ICICI Securities Ltd.
ICICI Securities Limited (i-SEC) is a wholly owned investment-banking subsidiary of ICICI

Limited. ICICI is the only non-Japanese Asian financial institution to be listed on the New
York Stock Exchange (NYSE). ICICI Securities was formed on 22nd Feb. 1993, when ICICI's
Merchant Banking Division was spun off into a new company, ICICI Securities today is India's
leading Investment Bank and one of the most significant players in the Indian capital markets.
ICICI Brokerage Services Limited (IBSL) set up in March 1995, IBSL is a 100% subsidiary of
i-SEC. It commenced its securities brokerage activities in February 1996 and is registered with
the National Stock Exchange of India Limited and The Stock Exchange, Mumbai.
ICICI has started a website ICICIdirect.com which is the most comprehensive website, which
allows you to invest in Shares, Mutual funds, Derivatives (Futures and Options) and other
financial products.
ICICI has a large network of branches all over India.
Services offered:
 Merchant Banking
 Demat Service
 Stock Broking
5. HDFC
HDFC is the leading financial company in India. IT has large network of branches all over
India. HDFC Securities which is fully subsidiary of HDFC provides demat service.
HDFC and its subsidiary provides following services.
 Demat Service
 Life Insurance
 Banking Service
 Housing Finance
 Vehicle Finance
 Education Loan

 Personal Loan
 Mutual Fund
6. Kotak Securities Ltd.
Kotak Securities needs no introduction as one of the largest stock broking houses in the
country and a leading distributor of primary market offerings. Kotak Securities limited is a
joint venture between Kotak Mahindra Bank and Goldman Sachs, the international investment
banking and brokerage firm.
Kotak Securities is a corporate member of both the BSE and the NSE. It is also a depository
participant with the National Securities Depository Limited (NSDL) for trading and settlement
of dematerialized shares.
Services offered:
 Stock Broking
 Financial Product Distribution
 Demat Services
 Investment Advisory Services
7. Motilal Oswal Securities Ltd.
Motilal Oswal Securities Ltd (MOSL) is one of the leading equity research and broking houses
of India. MOSL has a 20-member research team, which is engaged round the clock in
analyzing the Indian economy and corporate sectors to identify equity investment ideas. Asia
Money Broker's Poll 2002 has rated MOSL as one of the best Indian broking house, for
research, for the second time since 2000.
Motilal Oswal is member of NSDL and CDSIL for DP. It has wide network of branches. It has
158 branches all over India
Services Offered:
 Demat Services
 Stock Broking

 Investment Advisory Service
MARKETING STRATEGY OF KARVY
Market Positioning:
Market positioning statements of Karvy are “At Karvy we give you single window service” and
“We also ensure your comfort”.
So, Karvy focus on the consumers who prefer almost all investment activities at same place by
providing number of various financial services. At Karvy a person can purchase or sell shares,
debentures etc. and at the same place also demat it. Karvy also provides other investment
option to the same person at same place like Mutual Fund, Insurance, Fixed Deposit, and
Bonds etc. and help the person in designing his portfolio. By this way Karvy provides comfort
to its customers.
Karvy is also positioned according to Ries and Trout. Karvy is promoted as a no. 1 investment
product distributor and R & T agent of India.
Target Market:
Karvy uses demographic segmentation strategy and segment people based on their occupation.
Karvy uses selective specialization strategy for market targeting. Target person for the Karvy
Stock Broking and Karvy Investment Service are persons who can work as sub-broker for the
companies. Companies focus on Advisors of Insurance and post office, Tax consultants and
CAs for making sub-broker.
Marketing channel System:
Karvy uses one level marketing channel for investment product distribution. Sub-brokers work
as intermediary between consumer and company. Company has both forward and backward
flow of activity through channel. Company distributes stationery, brokerage, and information
forward to its sub-broker. The sub-brokers send filled forms, queries, amount of investment.

Training Channel Members:
Karvy provides training to the sub-brokers because they will be viewed as the company by the
investors. The executives of Karvy explain various new schemes of investment to the sub-
brokers with its objective, risk factors and expected return. Company also periodically arrange
seminar to guide sub-brokers.
Advertising and Promotion:
The objective of advertising of Karvy is to create awareness about services of Karvy among
investors and sub-brokers and increase sub-brokers of Karvy.
Company doesn’t give advertisement in media like TV, Newspapers, and Magazines etc.
Karvy’s advertisement is made indirectly by the companies associate with it. Karvy is R & T
agent of around 700 companies. They publish name, address and logo of Karvy on their annual
report.
Karvy also publish its weekly Stock Market Newsletter ‘Karvy Bazaar Baatein’ and monthly
magazine ‘The Finapolis’ to guide investors and sub-brokers about market.

HR POLICY OF KARVY
Karvy’s HR Department is located at Hyderabad and of northern zone is at Lucknow.
Recruitment and Selection Policy:
The upper level members like zonal managers, regional managers, branch managers and senior
executives are recruited by publishing recruitment advertisement in leading national level
newspaper. The qualified applicant are then called for interview and selected.
The regional manager has authority to select lower level employee like peon, marketing
executives, accountant etc. by approval of zonal manager.
Training and Development:
Continuous training and upgrading technical, behavioral and managerial skills is a way of life
in Karvy. Karvy encourages employees to hone their skills regularly to enable them to face the
challenges of the changing requirements of customers that fit market up and down.
Training needs analysis is done on a regular basis and systematic methodologies are ensured
that skills and capabilities of all employees are constantly upgraded to enable them to perform
in the challenging work environment.
New employee has given training under experienced employee. The new employee work under
experience employee and observe his all activities. When company employs new technology
or there is any change in the working of company the training program is arranged.
Employee Motivation:
Karvy’s employees are highly empowered. They don’t have to report any person of the same
branch but they report upper level branch. Eg:- Product head of Allahabad branch directly
reports Regional head.

REGULATORY BODIES
Financial System is basically responsible for the major up and downs in the economy. So,
there are some regulatory bodies on it which ensures effectiveness in the management of fund
of the investors and transparency in the transactions.
Ministry of Finance
SEBI RBI Dept. of IT
Stock Brokers Commercial PAN

R & T Agent Banks TAN
Mutual Fund NBF Co. e-TDS
[Regulatory bodies]

SWOT Analysis
Strengths:
 Employees are highly empowered.

 Strong Communication Network.
 Good co-operation between employees.
 Number 1 Registrar and Transfer agent in India.
 Number 1 dealer of Investment Products in India.
Weaknesses:
 High Employee Turnover.
Opportunity:
 Growth rate of mutual fund industry is 30 to 400% during last year and it
expected that this rate will be maintained in future also.
 Marketing at rural and semi-urban areas.
Threats:
 Increasing number of local players.

 Past image of Mutual Fund.
 No Entry load is affecting payout & business directly.

CHAPTER 4
SCOPE OF WORK

4.1 Scope of the work
Marketing of Financial product is a challenging as well as a growing field. Scanning and

future potential are the important part of company. And when any person collects the data
related to this topic then everyone notice it. Every member of marketing department
needs this data from executive to the product head.
As a marketing student it is important to know about the real market conditions which
develop the idea related to market without going in market and it also provide a research
pattern to student.
This study contains detailed knowledge about, awareness among advisors, the market
share of Mutual fund, problem of advisor for not selling the Mutual fund. This will be
helpful for all the concerned persons.
A satisfied advisor gives more sales than, unsatisfied person.

CHAPTER 5
OBJECTIVES

5.1 PROBLEM FORMULATION
Marketing Research being a logical process definitely follows our predetermined

sequence or steps in order to obtain the desired results or outcomes. Though the entire
process of Marketing Research is quite complex and requires a considerable degree of
knowledge and skill, the step of the Problem Formulation is the most challenging and
critical one for the researcher as well as the research. It is rightly said that a problem, well
defined is half solved.
In today’s competitive world companies cannot afford to reactive, instead the trend is
toward proactive. It is due to the increasing competition that the companies cannot afford
to undertake research until something goes wrong. This can curtail the future growth or
even affect the very existence of the organization seeing to the trend of being proactive in
the future; companies are allocating more resources to the disciplines of research. In such
case it becomes a duty of researcher to ensure that the organization gets an optimum
return on the resources it has invested. Thus, Problem Formulation assumes great
importance in Marketing Research.
The Marketing Research project undertaken by me for the ‘Karvy Stock broking Limited’
encompasses within its scope, the study of “The Mutual Fund and to find out market
potential of KARVY Investor Service Ltd. with special reference to distribution of
Mutual Fund in Allahabad City. Company wants to increase its sub-brokers who
can work as intermediary between company and the investors.”

5.2 RESEARCH OBJECTIVES
Any activity done without an objective in a mind cannot turn fruitful. An objective
provides a specific direction to an activity. Objectives may range from very general to
very specific, but they should be clear enough to point out with reasonable accuracy what
researcher wants to achieve through the study and how it will be helpful to the decision
maker in solving the problem.
The objective of any research is basically divided into two categories.
Primary Objective:
To find out preference among advisors towards mutual funds.
Secondary Objectives:
Following are secondary objectives.
 To assess an awareness of mutual funds in Allahabad City.

 To find out level of awareness of mutual funds in Allahabad City.
 To find out how many investment advisors are interested in dealing of mutual
fund.
 To find out how many investment advisors are willing to work with Karvy.
 To find out the Preferred AMC among advisiors & indirectly through customers.
5.3 SCOPE
It will help the organization . The organization may know, what are the preferences of
their advisors and business associates so, they can work on that accordingly.

CHAPTER 6
REDEARCH
METHODOLOGY

6.1 RESEARCH METHODOLOGY
Market Research
Research in common parlance refers to a search for knowledge. We can also define
research as a scientific and systematic search for pertinent information on a specific topic.
In short the research for knowledge through objective and systematic method of finding
solution to a problem is research.
According to American Marketing Association “ Market Research is the function which
links the customers, and public to the market through information used to identify and
define marketing opportunity and problem; generates, defines and evaluate marketing
actions, monitor marketing performance and improve understanding as a process”
Objective of Marketing Research
The main aim of research is to find out the truth which is hidden and which has not been
discovered yet. Though each research study has its own specific purpose, we think of
research objectives as falling into a number of following broad grouping:
1. To gain familiarity with a phenomenon and to achieve new insight.
2. To portray accurately the features of a particular individual, situation or a group.
3. To determine the frequency with which something occurs.
4. To taste a hypothesis of a casual relationship between variables.

The objective of any research is basically divided into two categories.
Primary Objective:
To find out market potential of Karvy Investor Service Ltd.
Secondary Objectives:
Following are secondary objectives.
 To assess an awareness of mutual funds in Allahabad City.

 To find out level of awareness of mutual funds in Allahabad City.
 To find out how many investment advisors are interested in dealing of mutual
fund.
 To find out how many investment advisors are willing to work with Karvy.
 To find out the favourite AMC among advisiors & indirectly through customers.
Research Process
 Identify Problem/Objective
 Frame Hypothesis
 Select Research Design
 Select the Sample
 Collection of Data
 Analyze the Data
 Prepare Report
Research Design:-
A research design is a pattern or an outline of a research project’s working. It is a

statement of only the essential elements of a study, those that provide the basic guidelines
for the details of the project. It comprises a series of prior decision that taken together
provide master plans for executing a research projects.
The study was conducted on the basis of list of respondents who were targeted.
From that “A research design is the arrangement of conditions for collection and analysis
of Data in customers preferences were collected and were able to cover almost all the
leading brands. This was Research Design for the project.

Types of Research Design
1. Descriptive research
2. Exploratory Research
3. Experimental Research
4. Casual design Research
5. Case study
Researcher has adopted descriptive research design because; a descriptive research is

undertaken when researcher wants to know the characteristics of certain group.
Descriptive or Survey Research Design attempts to describe and explain conditions of the
present by using many subjects and questionnaires to fully describe a phenomenon.
Survey research design /survey methodology is one of the most popular for dissertation
research.
Characteristics of interest:
 Advisor’s qualification & level of education.

 Advisor’s knowledge about Mutual Fund
 Advisor’s knowledge about Karvy
 Advisor’s interest in getting knowledge of Mutual Fund
 Advisor’s willingness to deal in Mutual Fund with Karvy
 Advisor’s preference in selecting tax saving instrument of investment
 Advisor’s preference in selecting Mutual Fund company
Types of Data-
(i) Primary Data- Primary data are set of those information which are collected new and
for the first time and thus happen to be original in nature.
(ii) Secondary Data- Secondary Data are those set of information’s which have already
being collected by someone else and which have already been passed through the
statically process.

Sources of Data:-
1) Primary data
This data can be collected through experiments or through survey. The various method of
Primary data collections are:
- Questionnaire method
- Observation method
- Interview method
The Researcher adopted personal interview method through structured questionnaire,
because it is descriptive study which study existing thing and questionnaire is cheaper as
compared to schedule method, cover wide area, collect detailed information of
respondents, it’s avoids bias, respondents may feel free to express their opinions without
ambiguity and less pressure to respondents. Through personal interview respondent easily
understand the questionnaire, it’s taking less time and respondents take interest as well as
interviewer communicate with respondents.
2) Secondary data
Secondary data refers to the data, which have already been collected and analyzed by
some more else usually published data are available in.
- Libraries
- Literature
- Periodicals
- Census and Registration data
- Trade association
- Government department
- Private sources
- Commercial data
- Financial data
- International organization
- References and Bibliographies
- Volume of statistics
- Advertising
- Internet
- Other sources
The method adopted in the study:
Company’s website, google search engine, books, magazine and news paper are used for
collection of secondary data.
Sampling Procedures:-
Random Sampling is used for the Survey.
Sampling Unit:-
Mutual Fund Advisors in Allahabad area.
Sampling Design:-
A Sampling Design is the process of obtaining the Sample from a given population. It
refers to Technique or the Method which the Researcher would adopt in selecting items
from the sample.
I have used both ‘Convenience Sampling Method’ and ‘Snow Ball Sampling Method’
Sampling Techniques:-
The financial advisors were randomly selected from given list of 300
Sample Frame:-
In this survey Researcher has selected 100 advisors out of 300 advisors as provided by the
sources.
Sample Size:-
A total sample size is of 100 Respondents in Allahabad city.

CHAPTER 7
DATA
COLLECTION
AND
DATA ANALYSIS

7.1 Research Instruments:-
The research instrument used was the “Structured Questionnaire”.
The questionnaire basically consisted of a set of question that was presented to the
respondents for their answers. This was far the best method used for the collection of
Primary Data. In the preparation of the questionnaire, care was taken to see that the
wording of the question were as simple as possible and would not cause any strain to the
respondents in understanding or interpreting of the questions, however some financial
terms were used as financial advisors were aware about it. Also the flow of the questions
has been kept in a logical order as much as possible.
The questionnaire includes closed ended and open ended questions. The closed ended
questions include both dichotomous i.e. yes/no type and the multiple-choice questions.
7.2 Data Analysis & Interpretation:

Data Analysis is based on the data collected by way of Questionnaires. From the collected
data findings are extracted. The data is tabulated and frequency distribution chart is
prepared.

7.3 RESEARCH ANALYSIS AND INTERPRETATION
1) Age & Gender?

Table no.7.3.1
Parameter No. of respondents % of respondents
20-25 12 12%
26-30 18 18%
31-35 18 18%
36-40 12 12%
51-above 40 40%
Total 100 100%
Table no.7.3.2
Gender No of respondents % of respondents
Male 76 76%
Female 24 24%
Total 100 100
40%
35%
30%
25%
20%
15% Advisors
10%
5%
0%
20-25 26-30 31-35 36-40 41 -
above
Figure no.7.1
76% male & 24 % Female
Analysis
76% of the respondents are male, whereas remaining 24% are female.
In above chart we can see that Young advisors are few in number, where as experienced
are in majority above 40 years of age.

2) Education?
Table no.7.3.3
Parameter No of respondents % of respondents
Undergraduate 23 23%
Graduate 57 57%
Masters 20 20%
Total 100 100
60%
50%
40%
30%
Education
20%
10%
0%
UG Masters
Figure no.7.2
UG – Under graduate, G- Graduate
Analysis
23% of the respondents are Undergraduate, whereas Majority of them are Graduate
with 57%
There are a few advisors which are Post Graduate & having high knowledge.

3) Are you AMFI certified?
Table no. 7.3.4

Yes 68 68
No 32 32
Total 100 100
70%
60%
50%
40%
30% AMFI
20%
10%
0%
Yes No
Figure no.7.3
AMFI – Association of Mutual Funds in India
Analysis
The number of AMFI certified advisors is quite high, which means they have
passed AMFI exam & are quite knowledgeable as compared to non-amfi.

4) As an investment advisor, which investment options you suggest to your
customers, and Mention Reasons also?
Table no.7.3.5
Options No of respondents % of Respondents
Insurance 39 39%
Mutual Funds 24 24%
Fixed Deposits 11 11%
Bonds 16 16%
Others 10 10%
Total 100 100
40
35
30
25
20
Business
15
10
5
0
Ins MF FD Bonds Othrs
Figure no. 7.4

INS – Insurance, MF – Mutual Fund, FD – Fixed deposits
Analysis
The most preferred product is Insurance followed by MF, Bonds & FD’s.

5) Reason for selling Preferred Product?
Table no. 7.3.6

Reasons No of respondents % of respondents
Returns 23 23
Risks 17 17
Commission 24 24
Safety 16 16
Tax benefits 20 20
Total 100 100
25%
20%
15%
Reason
10%
5%
0%
R1 R2 P S T
Figure No.7.5
Here (R1 – Returns), (R2 – Risks), (P – Payout/Commission),(S – Safety), (T – Tax Benefit)
Analysis
The reasons for preferring investment options are mainly returns & payout Factor.
However tax benefit was second preference and Risks & safety were the last.

6) Approximately how many customers do you serve?
Table no.7.3.7
0 – 50 13 13
51 – 100 27 27
101 – 150 22 22
151 and above 38 38
Total 100 100
40
35
30
25
20
15 Customer
10
5
0
0-50 51-100 101-150 151&
above
Figure no.7.6
Analysis
Most of the advisors are maintaining a good database of customers.

7) What is your Brokerage payment period? Are you satisfied with it ?
Table no.7.3.8
1 week 18 18%
2 weeks 38 38%
3 weeks 32 32%
4 weeks 12 12%
Total 100 100
Satisfaction level
Table no.7.3.9
Yes 39 39
No 61 61
Total 100 100
40%
35%
30%
25%
20%
Pay pd
15%
10%
5%
0%
1 week 2 3 4
Figure no.7.7
Analysis
Majority of the respondents are not satisfied with the payment period. The average
payment period should be lesser.

8) If a taxable service person wants to invest, generally which option would you
suggest for investment?
Table no. 7.3.10

Insurance 33 33%
ELSS 27 27%
Bond 32 32%
Others 8 8%
Total 100 100
35
30
25
20
15 Tax saving
10
5
0
INS ELSS Bond Others
Figure No.7.8
Ins - Insurance, ELSS – Equity Linked Saving Scheme of Mutual Fund.
Analysis
It seems that insurance is more suggestable, then comes Bonds & ELSS.
Others include, PPF, infra schemes etc.

9) Are you interested to deal in Mutual Fund? If no please mention reasons, and if
yes please mention your favorite AMC.
Table no. 7.3.11

Yes 73 73%
No 27 27%
Total 100 100
80%
70%
60%
50%
40%
Result
30%
20%
10%
0%
Yes No
Figure no.7.9
Analysis
Majority of the respondents were interested to deal in mutual fund. However some of
them refused. The reason was less pay out, not faith in market, high risk involved,
Liquidity problem etc. These are the difficulties in selling Mutual fund
Some of the preferred & favorite AMC’s are

Reliance Mutual Fund
HDFC Mutual Fund
ICICI Prudential Mutual Fund.
SBI Mutual Fund

10) Do you think that, decisions for no-entry load to mutual funds is good?
Table no.7.3.12
Yes 18 18
No 82 82
Total 100 100
90
80
70
60
50
40 Result
30
20
10
0
YES NO
Figure no.7.10
Analysis
Decision for no-entry load is not accepted by majority of the respondents, as it has
lessened the pay-out which earlier was more.
11) Are you associated with Karvy?

Table no.7.3.13
Yes 73 73
No 27 27
Total 100 100
80
70
60
50
40
Result
30
20
10
0
Yes No
Figure no.7.11
Analysis
Maximum number of respondents are associated with Karvy, as it is much popular in the
city Allahabad.
12) Are you satisfied with services provided by Karvy’s Allahabad Branch?
Table No.7.3.14
Fully satisfied 16 16
To some extent 23 23
Not Fully satisfied 28 28
Not satisfied 26 26
Can’t say 7 7
Total 100 100
30
25
20
15
Result
10
0
Fully to some not fully nt satisfy Can't say
Figure no.7.12
Analysis
Only 15% of the respondents are fully satisfied, rest of them are not satisfied.
13) In future would you like attend seminars & Training Programs if arranged by
Karvy?
Table no. 7.3.15
Yes 18 18
No 58 58
Don’t know 24 24
60
50
40
30
20 Result
10
0
Yes No Don't
Know
Figure no.7.13
Analysis
A few of the respondents are only interested to attend seminar & training program, if
arranged & organized by karvy. Many of the respondents were lacking time factor.
14) Would you like to work with Karvy Stock Broking Ltd in Future for dealing
Mutual Fund?

Table no. 7.3.16
Yes 26 26
No 74 74
Total 100 100
80
70
60
50
40
Result
30
20
10
0
Yes No
Figure no.7.14
Analysis
Least number of respondents were interested to work with karvy as an employee, the
reasons were Reputed name, Trust etc.
Maximum persons were not interested to work with Karvy, the reasons were,
Lack of time, independency, individual working hours etc.

CHAPTER 8
OBSERVATION
AND
FINDING

8.1 FINDINGS
 The awareness level about Mutual Funds is More than average in the Allahabad
City among advisors.
 Approximately 73% of advisers are aware of and interested in dealing of Mutual

Funds. The reason for not interested in dealing of Mutual Fund is payout factor
about Mutual Fund.
 Most of the investment advisors are aware of MF services provided by Karvy, so

we can say that awareness level about MF services of Karvy is quite high.
 Few of the advisers are interested to know about Mutual Funds and interested to
attend seminar on Mutual Funds arranged by Karvy as they are having lack of
time & most of them are already aware through print & broadcast media
 Only 26% of advisers are interested to work with Karvy. Most of advisors don’t
want to work with Karvy because they have no time for expanding their services.
 Most of people invest in insurance to save tax followed by MF, Bonds & FD’s.
Insurance is widely used as tax-saving instrument & the other factor is pay out
factor. Insurance generates much better commission than Mutual Fund.

CHAPTER 9
LIMITATIONS

9.1 LIMITATIONS
 Due to limitation of time and cost constrains a sample size of only 100
respondents are chosen. The respondents in majority were sub-brokers of karvy
therefore they were limited in number.
 Data Analysis and interpretation done may not be that strong due to small sample
and ‘Convenience Sampling Method’.
 The sample extent for research is only Allahabad City.
 Working of the office was also affecting the research.
 The research was a bit costly, as I met each & every respondent individually at my
own expenses.
 Time factor was also another problem, as I was supposed to do many other works
assigned by the office.
 As karvy is registrar for many companies including Reliance, ONGC etc & many
other works are done by a single branch therefore too much of work load is there
with limited working staff.
 Some of the respondents may be biased in giving responses.
 My inexperience in research area might have affected results.

CHAPTER 10
RECOMMENDATIONS

10.1 RECOMMENDATIONS
 There is high potential market for Mutual Fund Advisors in Allahabad city, but
this market needs to be explored as investors are still hesitated to invest their
money in Mutual Funds.
 In Allahabad Advisors have good knowledge about Mutual Funds, So proper

Marketing of various schemes is required, company should arrange more and
more programs on Mutual Funds.
 Awareness of MF services provided by Karvy is also quite high, but service part is
lagging, so company needs proper marketing of their all services by distribution of
forms, collection of forms, arranging seminars etc.
 Most of advisors are not interested in dealing of Mutual Funds because they don’t
want to expand their services due to lack of time, so company should provide
them knowledge about single window services by which investor can get all
financial services from one place.
 Company should also provide knowledge about the growth rate and the expected
growth rate of Mutual Fund industry in India.
 Most of people are aware of life insurance, NSC and PPF for tax saving so,
company should market various tax saving schemes of Mutual Funds and their
benefits.
 The interface among the investors and the Mutual Fund Companies is the
advisors, so the advisors should have proper knowledge about Mutual Funds as
well as market so that they can help investors in their investment decisions. The
quality of agents performance and investors trust on them can be improved only if
they are permanent in nature.

CHAPTER 11
CONCLUSIONS

11.1 CONCLUSIONS
 Mutual Fund Advisors used to give emphasis on mutual funds than other
investment options. Due to no entry load preferred section is shifting, but it will
not make any difference as it is generating good returns.
 Mutual Funds have given a new direction to the flow of personal saving and
enable small and medium investors in remote rural and semi urban areas to reap
the benefits of the stock market investment. Indian Mutual Funds are thus playing
a very important developmental role in allocation of scares resources in the
emerging economy.
 Karvy is not able to provide sufficient services to the Advisors due to lack of staff
for distributing forms & brochure, at Allahabad Branch.
 The awareness level is high in advisors are interested in dealing in mutual fund.
 More advisors are knowing about services provided by karvy.

BIBLIOGRAPHY
1. www.mutualfundsindia.com
2. www.amfiindia.com
3. www.themanagementor.com
4. www.dewb-vc.com
5. www.karvy.com
6. www.indiacorporateadvisor.com
7. www.nsdl.co.in
8. www.incometaxdelhi.nic.in
9. www.incometaxindia.gov.in
10. www.the-finapolis.com
11. www.camsonline.com
12. www.moneycontrol.com
13. www.yahoofinance.com
Journals & other References:
 Philip Kotler, ‘marketing management’ prentice Hall of India Pvt. Ltd. New Dehli.
 C. R. Kothari ‘Research methodology’, Vishwa publication, New Delhi.
 Saxena Rajan ‘marketing management’ Tata McGraw-hill publication Co. Ltd. New
Delhi.
 H. V. Verma ‘marketing of services’ Global business press, New Delhi.
 Business today magazine of February issue, 2008.
 Karvy Finapolis, July-2010
 Fact sheet ‘Reliance mutual fund’ July 2010

ANNEXURE
Market Research
(Answer the questions, tick or answer as per requirement)
We assure you that, all the information collected from you will remain confidential & will be used for
studying & research purpose only
Name ______________________________________
Location & contact no______________________________________
1) Age & Gender (Tick the appropriate option) M F

20 – 25 26 – 30 31 – 35 36 – 40 40 – 45 & above
2) Education
Under Graduate Graduate Masters
3) Are you AMFI Qualified? If yes then please mention ARN code
__________________________________________________
4) As an investment advisor, which investment options you suggest to your customers?
Insurance Mutual Funds FD’s Bonds Others
Others_________________________________________________________________________________
5) Please Mention the reson for choosing above?

Insurance MF FD’s PPF Others
6) Approximately how many customers do you serve?

0-50 51-100 101-150 Greater then 150
7) What is the brokerage payment period and are you satisfied with it?
1 WEEKS 2 `WEEKS 3 WEEKS 4 WEEKS
Satisfied?
Yes No
8) If a Taxable service person wants to invest, generally which option would you suggest
for investment?
Insurance ELSS Bond Others
Please mention other options_____________________

9) Are you interested to deal in mutual Fund *please mention
reason
Yes No
If no then why?__________________________________________________________________
If yes, pls mention your favourite mutual fund AMC & Why_____________________
________________________________________________________
10) Do you think that decision for no entry load to mutual funds is good?
Yes No
11) Are you associated with KARVY

Yes No
If yes, Please mention sub broker code ____________________________________________
12) Are you satisfied with the services provided by KARVY’s Allahabad Branch?
Fully satisfied To some extent Not fully satisfied Not satisfied Can’t say
13) In future would you like to attend seminars & product trainings if arranged by
KARVY?
Yes No Don’t Know
14) Would you like to work with KARVY STOCK BROKING LTD in future for dealing
Mutual Fund?
Yes No
Please mention the reason.____________________________________________

___________________________________________________________________________
THANK YOU VERY MUCH FOR TAKING THE TIME

TO COMPLETE THIS QUESTIONNAIRE

GLOSSARY
Corporate advisory services
Merchant bankers offer customised solutions to solve the financial problems of

their clients. Merchant bankers study the working capital practices that exist within
the company and suggest alternative policies. They also advise the company on
rehabilitation and turnaround strategies, which would help companies to recover
from their current position. They also provide advice on appropriate risk
management strategies.
Loan syndication
Arrangement of loans for clients, by analysing their cash flow pattern, so that the
terms of borrowing meet the client’s cash requirements and offer assistance in loan
documentation procedures.
Portfolio
Total number of all holdings held by a company is called portfolio. The portfolio
mix is aimed at spreading the risk over different sectors. It consists of all assets of
company.
NAV
Net Asset Value is the current market worth of the mutual fund shares. It is
calculated daily by taking the funds total asset securities, cash and any accrued
earning deducting liabilities, and dividing the reminder by the number of shares
outstanding.
Depository
The principal function of a depository is to dematerialize securities and enable

their transactions in book-entry form. A depository established under the
Depositories Act can provide any service connected with recording of allotment of
securities or transfer of ownership of securities in the record of a depository.
Capital gain
The profit made from selling shares, mutual funds etc.
IPO
Abbreviation for initial public offering. Generally associated with admission to

listing of the share capital on the stock exchange.
AMC
Asset Management Company.
ELSS
Equity Linked Savings Scheme, ELSS is an option in mutual fund. In this option
the fund is locked for 3 years.


Preference Among Advisors Towards Mutual Fund at KARVY STOCK BROKING LTD

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Preference Among Advisors Towards Mutual Fund at KARVY STOCK BROKING LTD

Загружено:

Авторское право:

Доступные форматы

A PROJECT REPORT

A STUDY ON PREFERENCE OF THE ADVISORS TOWARDS

KARVY STOCK BROKING LTD. ALLAHABAD

Under the guidance of

“Mrs Archana A Borde”

Institute of Business Management & Research, Chinchwad, Pune Page i

My sincere gratitude to Mr Abhinav Prasad. (Head, northern region,[Distribution]

Institute of Business Management & Research, Chinchwad, Pune Page ii

I Prashant Joshi, student of MMM (2009-11) studying at “Institute of Business

Institute of Business Management & Research, Chinchwad, Pune Page iii

According to the curriculum of University of Pune, we are required to do summer training

Institute of Business Management & Research, Chinchwad, Pune Page iv

Institute of Business Management & Research, Chinchwad, Pune Page v

SR.NO CONTENTS PAGE NO

7.3.6 Preferred Product 63

7.3.7 No. of customer 64

7.3.14 Satisfaction level By service 70

Institute of Business Management & Research, Chinchwad, Pune Page vii

7.1 Age and Gender 59

7.3 AMFI Certified 61

7.4 Investment option 62

7.5 Preferred Product 63

7.6 No. of customer 64

7.7 Payment period & Satisfaction level for Payment period 65

7.8 Tax saving investment 66

7.9 Favorite AMC 67

7.10 No entry load 68

7.11 Advisor of KARVY 69

7.12 Satisfaction level By service 70

7.13 Training and seminar 71

7.14 Work as employee 72

Institute of Business Management & Research, Chinchwad, Pune Page viii

2 AMC Asset Management Company

3 IPO Initial Public Offering

4 NFO New Fund Offer

6 R & T AGENT Registrar and Transfer agent

7 AUM Asset Under Management

8 NAV Net Asset Value

9 ELSS Equity Linked Saving Schemes

10 AMFI Association of Mutual Funds in India

11 PAN Permanent Account Number

12 STP Systematic Transfer Plan

13 SIP Systematic Investment Plan

14 SWP Systematic Withdrawal Plan

15 SEBI Security Exchange Board of India

Institute of Business Management & Research, Chinchwad, Pune Page ix

Institute of Business Management & Research, Chinchwad, Pune Page 1

“A study on preference among advisors towards mutual fund”. It is an analytical research

Reason for selection of the topic :-

Institute of Business Management & Research, Chinchwad, Pune Page 2

Institute of Business Management & Research, Chinchwad, Pune Page 3

“Success is a journey, not a destination.”

Success sutras of karvy:

“Our mission is to be a leading and preferred service provider to our

Institute of Business Management & Research, Chinchwad, Pune Page 4

Fig no 1.1 success ladder

2.2 Company overview:

Institute of Business Management & Research, Chinchwad, Pune Page 5

Institute of Business Management & Research, Chinchwad, Pune Page 6

1. Largest independent distributor for financial products.

KARVY is a legendary name in financial services, Karvy’s credit is defined by its

2.3 KARVY SERVICES – AN OVERVIEW

Company is dealer of following Fixed Deposits