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INTRODUCTION
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1.1 INTRODUCTION OF MUTUAL FUND
Mutual fund is the pool of the money, based on the trust who invests the
savings of a number of investors who shares a common financial goal, like the
capital appreciation and dividend earning. The money thus collect is then
invested in capital market instruments such as shares, debenture, and foreign
market. Investors invest money and get the units as per the unit value, which
we called as NAV (net assets value).
Mutual fund is the most suitable investment for the common man as it offers
an opportunity to invest in diversified portfolio management, good research
team, professionally managed Indian stock as well as the foreign market, the
main aim of the fund manager is to taking the scrip that have under value and
future will rising, then fund manager sell out the stock. Fund manager
concentration on risk – return trade off, where minimize the risk and maximize
the return through diversification of the portfolio. The most common features
of the mutual fund unit are low cost.
Most open-end Mutual funds continuously offer new shares to investors. It is
also known as open-ended investment company. It is different from close-
ended companies.
Investment in securities are spread across a wide cross section of industries
and sectors thus the risk is reduced. Diversification reduces the risk because
not all stocks may move in the same direction in same proportion at same
time. Mutual funds issues units to the investors in accordance with quantum of
money invested by them. Investors of Mutual funds are known as “unit
holders”. The profits and losses are shared by the investor in proportion to
their investment. The mutual fund comes out with different schemes that
varies from time to time.
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1.2 DEFINITION OF MUTUAL FUND
“A mutual fund is nothing more than a collection of stocks and/or bonds. You
can think of a mutual fund as a company that brings together a group of
people and invests their money in stocks, bonds, and other securities. Each
investor owns shares, which represent a portion of the holdings of the fund.”
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Less Risk: - Investors acquire a diversified portfolio of securities even with
a small investment in a mutual fund. The risk in diversified portfolio is
lesser than investing in 2 or 3 securities.
Low Transaction cost: - Due to Economies of scale, mutual funds pay
lesser transaction cost. The benefits are passed on to investors.
Transparency: - Funds provide investors with updated information
pertaining to market & schemes. All material facts are disclosed to the
investor as required by regulator.
Safety: - Mutual funds industry is a part of well-regulated investment
environment where interest of the investors is protected by the regulators.
All funds are registered with SEBI & complete transparency is followed.
Fees:-
The fees that are charged will depend on the type of mutual fund
purchased. If a fund is risker and more aggressive, the management fee
will tend to be higher. In addition, the investor will also be required to pay
taxes, transaction fees as well as other costs related to maintaining the
fund.
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No Control over Investments:-
You have absolutely no control over what the Fund manager Des with you
money. You cannot advise him on how your money is to be invested. You
only sit back and hope for the best.
Profitability of High returns reduced significantly:-
A mutual fund contains a diversified basket of securities. If a single
security outperforms by a significant margin the impact will be limited.
Don’t Expect your Investment to grow and give you profit Overnight. There
will also be downward fall in the limits of the fund.
Personal Tax situation is not considered:-
When you Invest in a Mutual Fund, your money is pooled together with
others and your personal tax situation is not considered while making
Investment decisions. The most you can do is to choose between growth
fund.
As far as mutual funds are concerned, SEBI formulates policies and regulates
the mutual funds to protect the interest of the investors. SEBI notified
regulations for the mutual funds in 1993. Thereafter, mutual funds sponsored
by private sector entities were allowed to enter the capital market. The
regulations were fully revised in 1996 and have been amended thereafter
from time to time. There are four Phases in which Mutual funds have evolved.
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FIRST PHASE - 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It
was set up 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.
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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 Specified
Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the
purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund
Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and
functions under the Mutual Fund Regulations. With the bifurcation of the
erstwhile UTI which had in March 2000 more than Rs.76, 000 crores of assets
under management and with the setting up of a UTI Mutual Fund, conforming
to the SEBI Mutual Fund Regulations, and with recent mergers taking place
among different private sector funds, the mutual fund industry has entered its
current phase of consolidation and grow.
August, 1995.
AMFI is an apex body of all Asset management Companies (AMC) which has
been registered with SEBI. Till date all the AMCs are that have launched
mutual fund schemes are its members. It functions under the supervision and
guidelines of its Board of Director.
Association of Mutual Funds India has brought down the Indian Mutual Fund
Industry to a professional and healthy market with ethical lines enhancing.
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1.7 THE OBJECTIVES OF ASSOCIATION OF MUTUAL FUNDS IN INDIA
SCHEMES OBJECTIVE
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BY STRUCTURE
Open-Ended - This scheme allows investors to buy or sell units at
any point in time. This does not have a fixed maturity date.
Investors can conveniently buy & sell units at Net Asset Value
related Prices. The key feature of Open Ended scheme is liquidity.
Closed-Ended - A closed-end fund has a fixed number of shares
outstanding and operates for a fixed duration (generally ranging
from 3 to 15 years). The fund would be open for subscription only
during a specified period and there is an even balance of buyers
and sellers, so someone would have to be selling in order for you to
be able to buy it. Closed-end funds are also listed on the stock
exchange so it is traded just like other stocks on an exchange or
over the counter. Usually the redemption is also specified which
means that they terminate on specified dates when the investors
can redeem their units.
Interval – Interval schemes combine the features of open-ended
and close-ended funds. The units may be traded on the stock
exchange or may be open for sale or redemption during pre-
determined intervals at NAV-related prices. Fixed maturity plans, or,
FMPs are examples of these types of schemes.
BY NATURE
Equity Fund - Equities are a popular mutual fund category amongst
retail investors. They invest the funds into Equity holdings. The
structure of the fund may vary different for different schemes and the
fund manager’s outlook on different stocks.
These funds are sub- classified depending on Investment objective
such as
Diversified Equity Funds
Mid-Cap Funds
Sector Specific Funds
Tax Savings Funds (ELSS)
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Debt Funds - Debt funds are mutual funds that invest in fixed income
securities like bonds and treasury bills. Gilt fund, monthly income plans
(MIPs), short term plans (STPs), liquid funds, and fixed maturity plans
(FMPs) are some of the investment options in debt funds. Apart from
these categories, debt funds include various funds investing in short
term, medium term and long term bonds.
Balanced Funds - This scheme allows investors to enjoy growth and
income at regular intervals. Funds are invested in both equities and
fixed income securities; the
proportion is pre-determined and disclosed in the scheme related offer
document. These are ideal for the cautiously aggressive investors.
BY INVESTMENT OBJECTIVE
Growth Schemes - Growth Schemes are also known as equity
schemes. The aim of these schemes is to provide capital appreciation
over medium to long term. These schemes normally invest a major part
of funds in Equities & look for capital appreciation.
Income Scheme - Income Scheme are also known as debt schemes.
The aim of the scheme is to provide regular and steady income to the
investor. These Schemes invest in fixed income securities such as
bonds & corporate debentures. In such schemes capital appreciation
may be limited.
Balance Scheme - This scheme allows investors to enjoy growth and
income at regular intervals. Funds are invested in both equities and
fixed income securities; the proportion is pre-determined and disclosed
in the scheme related offer document. These are ideal for the
cautiously aggressive investors.
Money Market scheme - This is ideal for investors looking to utilize
their surplus funds in short term instruments while awaiting better
options. These schemes invest in short-term instruments such as
treasury bills, certificate of Deposit, commercial paper & Intercompany
call money and seek to provide reasonable returns for the investors.
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OTHER SCHEMES
Tax Saving Schemes – As the name suggests, this scheme offers tax
benefits to its investors. The funds are invested in equities thereby
offering long-term growth opportunities. Tax saving mutual funds
(called Equity Linked Savings Schemes) has a 3-year lock-in period.
Index Schemes - - Index schemes is a widely popular concept in the
west. These follow a passive investment strategy where your
investments replicate the movements of benchmark indices like Nifty,
Sensex, etc.
Sector Specific Schemes –Sectoral funds are invested in a specific
sectors like infrastructure, IT, pharmaceuticals, etc. or segments of the
capital market like large caps, mid-caps, etc. This scheme provides a
relatively high risk-high return opportunity within the equity space.
Dividend Tax-
Tax Benefits None 80L , 88 Free
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1.9 ORGANIZATION OF MUTUAL FUND
The mutual fund industry in India began in 1963 with the formation of the Unit
Trust of India (UTI) as an initiative of the Government of India and the
Reserve Bank of India. Much later, in 1987, SBI Mutual Fund became the first
non-UTI mutual fund in India.
The year 1963 heralded a new era of Mutual funds in India. His was marked
by the entry of private companies in the sector. After the Securities and
Exchange Board of India (SEBI) Act was passed in 1992, the SEBI Mutual
Fund Regulations came into being in 1996. Since then, the Mutual fund
companies have continued to grow exponentially with foreign institutions
setting shop in India, through joint ventures and acquisitions.
As the industry expanded, a non-profit organization, the Association of Mutual
Funds in India (AMFI), was established on 1995. Its objective is to promote
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healthy and ethical marketing practices in the Indian mutual fund Industry.
SEBI has made AMFI certification mandatory for all those engaged in selling
or marketing mutual fund products.
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Morgan Stanley Mutual Fund
These above are the Various Mutual Funds in India which has given a good
return.
As far as Mutual funds are concerned, SEBI (Securities & Exchange Board
of India) formulates policies and regulates the mutual funds to protect the
interest of the investor.
The offer documents of schemes launched by mutual funds and the scheme
particulars are required to be vetted by SEBI. A standard format for mutual
fund prospectuses is being formulated. Mutual funds have been required to
adhere to a code of advertisement.
SEBI has introduced a change in the Securities Control and Regulations Act
governing the mutual funds. The mutual funds which have been in the market
for at least five years are allowed to assure a maximum return of 12 per cent
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only, for one year.
The current SEBI guidelines on mutual funds prescribe a minimum start-up of
Rs.50 crore for an open-ended scheme, and Rs.20 crore for closed-ended
scheme, failing which application money has to be refunded. AMFI
(Association of Mutual Funds in India) have appealed to regulatory authority
of India for scrapping the minimum requirement
Also, 50% of the directors of AMC must be independent. All mutual funds are
required to be registered with SEBI before they launch any scheme.
The transparent and well understood declaration or Net Asset Values (NAVs)
of mutual fund schemes is an important issue in providing investors with
information as to the performance of the fund. SEBI has warned some mutual
funds earlier of unhealthy market
Trustees shall immediately report to the Board of any special developments in
the mutual fund.
The Net Asset Value (NAV) of a mutual fund is the price at which the units of
a mutual fund are bought and sold. It is the market value of the fund after
deducting its liabilities. The value of all units of a mutual fund portfolio are
calculated on a daily basis, from this all expenses are then subtracted. The
result is then divided by the total number of units the resultant value is the
NAV. NAV is also sometimes referred to as Net Book Value or book Value.
NAV indicates the market value of the units in a fund. So, it helps an investor
keep track of the performance about the mutual fund. An investor can
calculate the actual increase in the value of their investment by determining
the percentage increase in the mutual fund NAV. NAV, therefore, gives
accurate information about the performance about the mutual fund.
CALCULATION OF NAV
Mutual fund assets usually fall under two categories – securities & cash.
Securities, here, include both bonds and stocks. Therefore, the total asset
value of a fund will include its stocks, cash and bonds at market value.
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Dividends and interest accrued and liquid assets are also included in total
assets
The mutual fund itself and/or certain accounting firms calculate the NAV of a
mutual fund. Since, mutual funds depend on stock markets, they are usually
declared after the closing hours of the exchange.
All Mutual Funds are required to publish their NAV at every business day as
per SEBI guidelines.
NAV is obtained after subtracting the expense ratio of a fund. This expense
ratio is the total of all expenses made by the mutual fund annually, including
the operating expenses and the management fees, distribution and marketing
fees, transfer agent fees, custodian fees and audit fees.
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= [Rs 800/- 0] / 300 = 2.67
= The NAV is 2.67.
= So X’s value of investments will be 100 units * 2.67 = Rs 267/- and
= Y’s value of investments will be 200 units * 2.67 = Rs 534/-.
As per the regulator SEBI’s guidelines, all mutual funds are required to
publish the NAV of their schemes at least once a week and in two leading
newspapers.
HDFC Mutual Fund has been constituted as a trust in accordance with the
provisions of the Indian Trusts Act, 1882, as per the terms of the trust deed
dated June 8, 2000 with Housing Development Finance Corporation Limited
(HDFC) and Standard Life Investments Limited as the Sponsors / Settlers and
HDFC Trustee Company Limited, as the Trustee. The Trust Deed has been
registered under the Indian Registration Act, 1908. The Mutual Fund has been
registered with SEBI, under registration code MF/044/00/6 on June 30, 2000.
HDFC Asset Management Company Ltd (AMC) was incorporated under the
Companies Act, 1956, on December 10, 1999, and was approved to act as an
Asset Management Company for the HDFC Mutual Fund by SEBI vide its
letter dated July 3, 2000.
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ACHIEVEMENT OF HDFC
HDFC Asset Management company (AMC) is the first AMC in India to
have been assigned the CRISIL Fund House -1 rating.
This is the highest fund governance and process quality rating which
reflect the highest governance levels and fund management practices
at HDFC AMC.
It is only fund house to have been assigned this rating for 2 years in
succession.
INVESTMENT OBJECTIVE
To provide long-term capital appreciation by investing predominantly in Small-
Cap and Mid-
Cap companies
Current Expense Ratio 2.50%
(Effective Date 28th June 2017)
PRODUCT LABELLING
The product is suitable for investors who are seeking:
The product is suitable for investors who are seeking:
Investment predominantly in equity and equity related instruments of
Small-Cap and Mid-Cap companies
Investors should consult their financial advisers if in doubt about
whether the product is suitable for them.
Investors understand that their principal will be at moderately high risk.
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Graph-2 riskometer
As per the above chart you can see HDFC Mutual Fund is open ended. Its
average asset size is 859.76 crores. HDFC Introduced small and midcap
growth fund in 2008. Since then it has given good returns.
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1.12 PERFORMANCE OF THE DIFFERENT MUTUAL FUNDS
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ASSET UNDER MANAGEMENT MOVEMENT
The Below graph shows the Variation in the assets under management
The below diagram shows how much Equity has contributed to the Mutual
Funds
Equity
others
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TOP SECTOR HOLDING & PERCENTAGE ALLOCATION
Pharma 13.28 %
Construction 8.74 %
MARKET CAPITALIZATION
46.24
mid cap 22.8
small cap
0 10 20 30 40 50
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The below NAV calculation shows the returns of HDFC Mutual Funds with the
help of the graph HFDC Small & Midcap Fund Growth
Category
Average 3.3 52.78 3.56 32.72 -23.83
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1.14 SBI MUTUAL FUND
The SBI mutual fund Private Ltd is a joint venture between “The state bank of
India” and Societe Generale Asset management (France).The fund manages
over Rs 42,100 crore of assets and has a diverse profile of Investors actively
parking their investments across 38 active schemes.
At SBI Mutual Fund we know that every investor has unique financial goals
and requires a different sets of products. Which is why we have a wide range
of schemes that fulfills every kind of Investors requirements. Each scheme is
managed by devising a different strategy which is reflective of the investors
profile and carries with different risks and rewards.
Vision: - “To be the most preferred and the largest fund house for all asset
classes, with a consistent track record of excellent returns and best standards
in customer service, product innovation, technology and HR practices.”
SBI Funds Management has emerged as one of the largest player in India
advising various financial institutions, pension funds, and local and
international asset management companies.
SBI Funds makes one of the largest investment management firms in India,
managing investment mandates of over 5.4 million investors.
Equity Schemes
Debt/Income Schemes
Liquid Scheme.
Hybrid Schemes.
Fixed Maturity Plans
Exchange Traded Schemes
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CHAPTER-2
COMPANY PROFILE
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2.COMPANY PROFILE
The KARVY group was formed in 1983 at Hyderabad, India. Karvy ranks
among the top player in almost all the field it operates. Karvy Computers
shares Ltd is India’s largest Register and Transfer Agent with a client base of
nearly 500 blue chips corporate managing over 2 core accounts. Karvy stock
brokers Ltd, member of National stock Exchange of India. With over 6,00,000
active accounts, it ranks among the top 5 Depository Participated in India,
registered with NSDL and CDSL karvy COM trade, Member of NCDEX and
MCX ranks among the top0 3 commodity brokers in the country. Karvy
Insurance Brokers is registered as a Broker with IRDA and ranks among the
top 5 insurance agent in the country. Registered with AMFI as a corporate
Agent Karvy is also among the top Mutual fund mobilize with over Rs. 5,000
cores under management. Karvy Realty Services, which started in 2006, has
quick established itself as broker who adds value, in the realty sector. Karvy
global offers niche off shoring services to client in the US.
Karvy has 575 offices over 375 locations across India overseas at Dubai and
New York. Over 9,000 high qualified people staff Karvy.
A- Mr. Arun
Y- Mr. Yogendar
The birth last of Karvy was on a modest scale in 1979. It began with the vision
and enterprise of a small group of practicing Chartered Accounts who
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founded the flagship company. Karvy started with consulting and financial
accounting and carved inroads into the field of registry and share accounting
by 1985. Since then, Karvy have utilized its experiences and superlative
enterprise to go from.
Over the last 20 years Karvy has traveled the success route, towards building
a reputation as an integrated financial services provider, offering a wide
spectrum of services. And they have made the journey by taking the route of
quality service. Path breaking innovation in service, versatility in service and
finally totality in service.
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KARVY as covering the spectrum of financial services such as stock Broking
Services, Advisory Services, Stock broking ,Depository Participants,
Distribution of financial products – mutual funds, fixed deposits, equities,
Insurance Broking Commodities Broking, Personal Finance Advisory
Services, Merchant Banking and corporate Finance, Placement Finance,
Placement of equity, IPO’s, among other.
VISION OF KARVY
To achieve and 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.Their values
and vision of attaining total competence in their servicing has served as the
building block for creating a great financial enterprise, which stands solid on
their fortresses of financial strength – their various companies.
MISSION OF KARVY
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SERVICES PROFILE OF THE KARVY GROUP COMPANIES
Karvy Stock Broking Limited, one of the cornerstones of the Kavry edifice,
flows freely toward attaining diverse goals of the customer through varied
services, creating a plethora of opportunities for the customer by opening up
investment vistas backed by research-based advisory services. Here, growth
knows no limits and success recognizes no boundaries. Helping the customer
create waves in his portfolio and empowering the investor completely is the
ultimate goal. Why should Investors choose for KARVY …?
Controlled and low cost services culture:- Karvy is there to serve its
client at the minimum possible costs.
Longer 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.
Adherence to strict time Schedule:- Karvy knows that time is money
and tries it best to finish the task within the stipulated time schedule.
Expertise in coordinating Multi-location Responses:- Karvy has got
a wide network and hence I can find its branches at most of the places
in India. Thus it enjoys its presence everywhere and co-ordinates
among itself in solving the quarries and in responding to any situation.
Expertise in managing independent entities such as Banks, Post-
offices, etc:- The work culture of Karvy and the ethics followed inside
Karvy Makes its workforce with everybody. So the Karvy person
establishes good coordination with independent entities too.
Pooling of Group Resources:- Karvy group consists of 8 subsidiaries.
So it can easily pool up its resource for accomplishment of its goals,
whenever needed. The group can help each other whenever there are
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peaks and lows and even in the case when they have huge targets just
as we saw few years’ bank, Tata group pooling its resources to acquire
Corus.
It is an undisputed fact that the stock market is unpredictable and yet enjoys a
high success rate as a wealth management and wealth accumulation option.
The difference between unpredictability and safety anchor in the market is
provided by in –depth knowledge of market functioning and changing trends,
planning with foresight and choosing options with care. This is what they
provide in their Stock Broking services.
They offer services that are beyond just a medium for buying and selling
stocks and shares. Instead they provide services which are multi-dimensional
and multi-focused in their scope. There are several advantages in utilizing
their stock Broking services, which are the reasons why it is one of the best in
the country.
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“The Fin polis” which analysed the latest stock market treads and takes a
close look at the various investment options, and products available in the
market, while a weekly report, called “Karvy Bazaar Baatein”, keeps clients
more informed on the immediate trends in the stock market. In addition, their
specific industry reports give comprehensive information on various
industries. Besides this, they also offer special portfolio analysis packages
that provide daily technical advice on scraps for successful portfolio
management and provide customized advisory services to help you make the
right financial moves that are specifically suited to their portfolio.
Stock Broking services are widely networked across India, with the number of
trading terminals providing retail stock broking facilities. Its services have
increasingly offered customer oriented convenience, which they provide to a
spectrum of investors. High net worth or otherwise, with equal dedication and
competence. But true to their spirit, this success is not their final destination,
but just a platform to launch further enhanced quality services to provide you
the latest in convenient, customer-friendly stock management.
Over the years Karvy have ensured that the trust of customers is their biggest
returns. Factors such as their success in the Electronic custody business has
helped build on their tradition of trust even more. Consequentially their retail
client base expanded very fast.
To empower the investor further they have made serious efforts to ensure that
their research calls are disseminated systematically to all their stock broking
clients through various delivery channels like email, chat, SMS, phone calls
etc.
Their foray into commodities broking has been path breaking and they are in
the process of converting existing traders in commodities into the more
organized mainstream of trading in commodity futures, both as a trading and
risk hedging mechanism.
In the future, their focus will be emerging businesses and to meet this
objective, they have enhanced their manpower and revitalized their
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knowledge base with enhances focus on Futures and Options as well as
commodities business.
DEPOSITORY PARTICIPANTS
The onset of the technology revolution in financial service Industry saw the
emergence of Karvy as an electronic custodian registered with National
Securities Depository Ltd (NSDL) and central Securities Depository Ltd
(CSDL) in 1998.Karvy set standards enabling further comfort to the investor
by promoting paperless trading across the country and emerged as the to 3
Depository Participants in the country in terms of customer serviced. Offering
a wide trading platform with a dual membership at both NSDL and CDSL,
they are a powerful medium for trading and settlement of dematerialized
shares. They have established live DPMs, Internet access to accounts and an
easies transaction process in order to offer more convenience to individual
and corporate investors. A team of process in order to offer more
convenience to individual and corporate investors. A team of professional and
the latest technological enhancements like SPEED-e make their response
time quick and their delivery impeccable, A wide national network makes their
efficiencies accessible to all.
ADVISIORY SERVICES
Under their retail brand ‘Karvy –the fin polis’, they deliver advisory services to
a cross- section of customers. The service is backed by a team of dedicated
and expert professionals with varied experience and background in handling
investment portfolios. They are continually engaged in designing the right
investment portfolio for each customer according to individual needs and
budget considerations with a comprehensive support system that focuses on
trading customers’ portfolios and providing valuable inputs,monitoring and
managing the portfolio through varied technological initiative. This is made
possible by the expertise they have gained in the business over the years.
Another venture towards being investor friendly is the circulation of a monthly
magazine called ‘Karvy –the Finpolis’. Covering the latest of market news,
trends, investment schemes and research-bases opinions from experts in
various financial fields.
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MUTUAL FUNDS SERVICES
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Depository Services Limited). Today, they service over 6 lakhs customer
accounts in this business spread across over 250 cities/towns in India and are
ranked amongst the largest Depository Participants in the country. With a
growing secondary market presence, they have transferred this business to
karvy stock Broking Limited (KSBL),their associate and a member of NSE,
BSE and HSE.
Merchant Banking
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2.6 KARVY GIOBAL SERVIVES LIMITED
They operate in the core market segments that have emerging requirements
for specialized services. Their wide vertical market coverage includes
Banking, Financial and Insurance Services (BFIS), Retail and Merchandising,
Leisure and Entertainment, Energy and Utility and Healthcare.
At Karvy Insurance Broking Pvt. Ltd., they provide both life and non-life
insurance products to retail individuals, high net –worth clients and corporate.
With the opening up of the insurance sector and with a large number of
private players in the business, they are in a position to provide tailor made
policies for different segments of customers. Itheir journey to emerge as a
personal finance advisor, they will be better positioned to leverage their
relationships with the product providers and place the requirements of their
customers appropriately with the product providers. With Indian markets
seeing a sea change, bout in terms of investment pattern and attitude of
investors, insurance is no more seen as only a tax saving product but also as
an investment product By setting up a separate entity, they would be
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positioned to provide the best of the products available in this business to
their customers. Their wide national network, spanning the length and breadth
of India, further supports these advantages. Further, personalized service is
provided here by a dedicated team committed in giving hassle- free service to
the clients.
Karvy COM trade Limited is another venture of the prestigious Karvy group.
With their well established presence in the multifarious facets of the modern
financial services industry from stock broking to registry services, it is indeed
a pleasure for us to make foray into the commodities derivatives market which
opens yet another door for us to deliver their service to their beloved
customers and investor public at large. With the high quality infrastructure
already in place and a committed Government providing continuous impetus,
it is the responsibility of us, the intermediaries to deliver these benefits at the
door-steps of their esteemed customers.
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With their expertise in financial services, existence across the lengths and
breadths of the country and an enviable technological edge, they are all set to
bring to you, the pleasure of investing in this burgeoning market, which can
touch upon the lives of a vast majority of the population from the farmer to the
corporate alike. They are confident that the commodity futures can be a good
value addition to their portfolio. The company provides investment, advisory
and brokerage services in Indian commodities Markets. And most importantly,
they offer a wide reach through their branch network of over 255 branches
located across 180 cities.
KARVY have traversed wide spaces to tie up with the world’s largest transfer
agent, the leading Australian company, Computershare Limited. The
Company that services more than 75 million shareholders across 7000
corporate clients and makes its presence felt in over 12 countries across 5
continents has entered into a 50-50 joint venture with us. With its
management team completely transferred to this new entity, they will aim to
enrich the financial services industry than before. The future holds new
arenas of client servicing and contemporary and relevant technologies as the
are geared to deliver better value and foster bigger investments in the
business. The worldwide network of Computershare will hold us in good as
they expect to adopt international standards in addition to leveraging the of
best of technologies from around the world. Excellence has to be the order of
the day when two companies with such similar ideologies of growth, vision
and competence, get together.
ISSUE REGISTRY
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Karvy has the backing of skilled human esthetic complemented by requisite
technological packages to ensure a faster processing capability. Karvy has
the benefit of a good synergy between depositories and registry that enables
faster resolution to related customer queries. Apart from its unique investor
servicing presence in all the phases of related customer queries. Apart from
its unique investor servicing presence in all the phases of a public Issue, it is
actively coordinating with both the main depositories to develop special model
to enable the customer to access depository (NSDL, CDSL) Services during
an IPO. Their trust-worthy reputation, competent manpower and high-end
technology and infrastructure are the solid foundations on which their success
is built.
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CHAPTER-3
RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
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LITERATURE REVIEW
Name of the Book: - Mutual Funds in India
Author: - D. V. Ingle
ISBN no – 9788177083323
Publishing year: - 2013
Abstract - This book provides an in-depth account of the functioning of mutual
fund industry in India. The Author D.V. Ingle has described everything about
Mutual Funds in India and why it is useful for small investors who cannot
directly invest in stock market. Also when the Mutual funds were created. This
Book describes the journey of Mutual Funds in India.
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Abstract: - This paper helps us to understand the study of the mutual funds in
India. This paper also says where and how we should invest mutual fund 7
why it dangerous to directly invest in stock market as you might have to face
loss. Investing in mutual funds helps you to diversify your risk .This study was
conducted to analyse and compare different types of mutual funds in India.
Name of the Research Paper:- Investor’s preferences towards
Mutual Fund and Future
Investments:
Abstract: - The advent of Mutual Funds changed the way the world invested
their money. The start of Mutual Funds gave an opportunity to the common
man to hope of high returns from their investments when compared to other
traditional sources of investment. The main focus of the study is to understand
the attitude, awareness and preferences of mutual fund investors. Most of the
respondents prefer systematic investment plans and got their source of
information primarily from banks and financial advisors. Investors preferred
mutual funds mainly for professional fund management and better returns and
assessed funds mainly through Net Asset Values and past performance.
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Abstract: - Indian Mutual Fund industry has experienced tremendous growth
due to infrastructure and also supported by high saving of funds. After
liberalization and globalization of Indian economy, market witness huge crowd
towards the option of investing in mutual funds but investment in a particular
funds needs a lot of specification like-investor’s objectives, cost, availability of
funds, risk & return factors etc. and thus invite fundamental study for better
future and growth. This paper aims to know how the performance of mutual
funds is assessed and ranked after analyzing the NAV and their respective
returns so as to measure investment avenues.
Abstract: - Indian Mutual Fund has gained popularity in last few years. The
present study analyses the mutual fund investments in relation to investor’s
behaviour. Investors’ opinion and perception has been studied relating to
various issues like type of mutual fund scheme, main objective behind
investing in mutual fund scheme, role of financial advisors and brokers,
investors’ opinion relating to factors that attract them to invest in mutual funds,
sources of information, deficiencies in the services provided by the mutual
fund managers, challenges before the Indian mutual fund industry.
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CHAPTER-4
DATA ANALYSIS
44
DATA ANALYSIS
Educational Qualification
This Graph shows 90% the Educational Qualification of the Investor have
completed graduation.
Occupation
Graph-8 occupation
This Graph shows 85% of the occupation of the investors are working in
private sector whereas 10% of investors are working in government sectors.
45
What is your Monthly family income approximately?
This graph shows 42.1% of monthly income of investors is above 30000 &
above whereas 26.3% of the investors have monthly income of 20001 to
30000 & 15001 to 20000.
46
While investing your Money, which factor you prefer most?
This graph shows 42.1% of Investors look for low risk whereas 31.6% of
investors look for high return and 21.1% of the Investors look for Liquidity.
Have you ever Invested Money in Mutual Fund?
This graph shows 57.9% of investors who are investing have said yes
whereas 42.1% of them have said no.
Where do find you as Mutual Fund Investor?
This graph shows the 47.1 % of Investors who have a partial knowledge about
mutual fund. Whereas 23.5% of the investor are totally ignorant or aware of
only specific schemes.
47
In Which kind of Mutual Fund you would like to Invest?
48
What Future of the Mutual Funds allures you most?
This graph shows the 44.4% of investors who invest in mutual funds so that
their risk get diversified whereas 33..3% of the investor look for better returns
and safety and 17.7% of the investor look for regular income.
49
In which Mutual Fund have you invested?
When you invest in Mutual Funds which mode of investment, will you
prefer?
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CHAPTER-5
FINDINGS AND SUGGESTIONS
51
FINDINGS & SUGGESTION
52
Diversification: - The most the amount the Investors invest, the
greater is the ability to afford diversification amount different asset
classes and investment styles. Asset allocation is the way in which one
gives weightage to each asset classes. Each Asset class has its own
characteristic in terms of fluctuation.
Continuous Monitoring: - Investors should continuously monitor their
portfolio and revise by updating according to market position, that their
returns can be maximized.
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CHAPTER-6
CONCLUSION
54
CONCLUSION
Mutual Fund Industry now represents perhaps most appropriate opportunity
for most Investors. The financial market is most sophisticated and complex.
Investors need required knowledge to invest in the mutual fund industry.
Mutual fund industry also gives good returns if the markets are high and you
can also suffer losses if the market does not do well or while investing fund
manager makes some mistakes during investment of Mutual Funds.
Mutual Fund Returns are compared based on performance of the stock
market. If the stock market do well than the fund in which you have invested
will also do well. As the markets are diversified, the loss is minimal.
In my above research I had compared SBI mutual fund & HDFC Mutual fund. I
had compared 5 years returns which Both the Mutual Funds have given good
returns after a specified period. Since Inception SBI mutual fund has given
good returns of 20 % where as HDFC mutual fund has given a return of only
14 %.
But still Investors prefer to invest their money in Private mutual funds in the
long run as they feel that they would get good returns.
But looking at both the Mutual Funds three year ratio SBI Mutual Fund has
given a good return of 42 % where as HDFC has given a return of 25%.
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BIBLOGRAPHY
WEBSITES:-
www,sbimf.com
www.hdfcmf.com
www.amfiindia.com
www.mutualfundsindia.com
www.research gate.com
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