CENTRAL UNIVERSITY OF RAJASTHAN

A SUMMER INTERNSHIP REPORT

On
“ABOUT MUTUAL FUND AND A COMPARATIVE STUDY
WITH OTHER FINANCIAL SERVICES OF EDELWEISS
BROKING LTD.”
AT

EDELWEISS BROKING LTD.

Submitted for the partial fulfilment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
2016-18
To the Department of Management,
Central University of Rajasthan, Bandarsindri
SUBMITTED BY :-
KANIKA RUNWAL
2016MBA010
 DECLARATION

I hereby certify that the MBA summer internship report (About Mutual Funds and a
comparative study with other Financial Services of Edelweiss), submitted in partial
fulfillment for the award of Master of Business Administration at the Department of
Management, Central University of Rajasthan, Bandarsindri, District Ajmer, is an authentic
record of work carried out by me during the period [29 May 2017 to 15 July 2017]. All the
sources of text, pictures, tables, figures etc. have been duly cited, and the original sources/
authors have been given due credit. The matter embodied in this MBA summer internship
report has not been submitted for the award of any other degree or diploma.

Date: Signature of the Candidate :

Name of the Candidate : Kanika Runwal

Enrolment number: 2016MBA010

CERTIFICATE FROM THE ORGANISATION
 ACKNOWLEDGEMENTS

It is with a sense of gratitude, I acknowledge the efforts of entire hosts of well wishers who
have in some way or other contributed in their own special ways to the success and
completion of this Summer Internship report.

I am deeply indebted to Prof: Sanjay Garg (Faculty of finance) for my successful

completion of the project and provided with me with valuable guidance in every step of my
internship. His knowledge of this field proved to be very beneficial to me during my
internship.

I express my profound and sincere thanks to Mr. Rocky Gupta (Team Leader) who acted as
a mariner’s compass and steered me throughout my project voyage through his excellent
guidance and constant inspiration. He gave me lots of encouragement and motivation to help
me delivery to the best of my abilities . His clear understanding of every aspect of the stock
market proved to be very beneficial for me. His experience in this field proved to be very
helpful to me during my internship and his knowledge was also very beneficial to me
whenever I faced and sort of problem.

Further I express my gratitude to Mr. Sameer Khan, Mr. Anurag Pandey and Mr. Hitesh
Pant who were kind enough to give opportunity to work under their immense expertise. I
sincerely thanks to all of them for their valuable suggestions, motivation and encouragement.

Last but not the least I would like to thank my colleagues in Edelweiss Broking Ltd, Jaipur
Branch who have also contributed in the project by giving me valuable feedback from time
to time.
 EXECUTIVE SUMMARY
A mutual fund is a professionally-managed investment scheme, usually run by an asset
management company that brings together a group of people and invests their money in
stocks, bonds and other securities.

Edelweiss is one of the leading names in the field of financial services. Edelweiss has a
variety of financial products to cater to the need of the customers. Edelweiss Mutual Fund is
an important fiduciary business of Edelweiss Group. It is a trust sponsored by Edelweiss
Financial Services Limited. Edelweiss Asset Management Limited, a subsidiary of Edelweiss
Financial Services Limited, acts as the Investment Manager to Edelweiss Mutual Fund.

India is one of the fastest growing economies in the world and there is lots of potential to
grown in the market. There is very little awareness of the mutual fund among the population.

My main aim during the internship was to convince people to invest in the mutual fund and
answer all there queries and take them into confidence. My job was to generate business by
bringing sip (systematic investment plan) for the company and generating leads for them. I
did a variety of activity to generate business for the company through tele calling, market
visits, corporate activity.

During this various activities my job was to interact with people provide them with
knowledge about investment opportunities in mutual funds which would earn them handsome
returns in comparison to other financial services. I faced a number of difficulties during my
internship period but was able to overcome them through my knowledge and guidance of my
seniors. I also learned a great deal about how to sell a product and convince people to buy it
by solving all there queries.I also learned a great deal about the mutual funds and its various
aspects, the way it functions and how to make investments.
 TABLE OF CONTENT

1. INTRODUCTION OF MUTUAL FUND

2. WORKING OF MUTUAL FUNDS

3. EDELWEISS AND DIFFERENT SERVICES PROVIDED BY EDEWEISS

4. MUTUAL FUNDS vs OTHER INVESTMENT

5. FUTURE PROSPECT OF MUTUAL FUND IN INDIA

CONCLUSION

CHAPTER 1
 INTRODUCTION OF MUTUAL FUNDS

There are a lot of investment avenues available today in the financial market for an investor
with an investable surplus. He can invest in bank deposit, corporate debentures, and bonds
where there is low risk but low return. He may invest in stock of company where risk is high
and return is also proportionately high. The recent trends in stock market have shown that an
average retail investor always lost with periodic bearish trends. People began opting for
portfolio managers with expertise in stock market who would invest on their behalf. Thus we
had wealth management services provided by many institutions. However they proved too
costly for a small investor. These investor have found a good shelter the with the mutual
funds.

CONCEPT OF MUTUAL FUND

Mutual funds give small or individual investors access to professionally managed portfolio of
equities , bonds and other securities.. A mutual fund is an investment vehicle  made up of a
pool of moneys collected from many investors for the purpose of investing in securities such
as stocks, bonds, money market instruments and other assets. Mutual funds are operated by
professional money managers, who allocate the fund's investments and attempt to
produce capital gains and/or income for the fund's investors.

A mutual fund's portfolio is structured and maintained to match the investment

objectives stated in its prospectus.

Mutual funds are in the form of Trust (usually called Asset Management Company) that
manages the pool of money collected from various investors for investment in various classes
of assets to achieve certain financial goals.  We can say that Mutual Fund is trusts which pool
the savings of large number of investors and then reinvests those funds for earning profits and
then distribute the dividend among the investors. In return for such services, Asset
Management Companies charge small fees.
 Every Mutual Fund /launches different schemes, each with a specific objective. Investors
who share the same objectives invests in that particular Scheme. Each Mutual Fund Scheme
is managed by a Fund Manager with the help of his team of professionals.

DEFINITION
According to SEBI regulation Act 1996

“Mutual fund means a fund established in the form of a trust to raise money through the sale
of units to the public or a section of public under one or more schemes for investing in
securities in accordance with regulations.”

“A mutual fund is an investment that pools your money with the money of an unlimited
number of investors. In return, you and the other investors each own shares of the fund. The
fund’s assets are invested according to an investment objective into the fund’s portfolio of
investments. Aggressive growth funds seeks long term capital growth by investing primarily
in stocks of fast growing smaller companies or market segments.”

 “A mutual fund is a professionally-managed investment scheme, usually run by an asset

management company that brings together a group of people and invests their money in
stocks, bonds and other securities.”

WHY SELECT MUTUAL FUNDS ?

The risk return trade off indicate that if investor is willing to take higher risk then
correspondingly he can expect higher returns and vice versa if he pertains to lower risk
instruments, which would be satisfied by lower return.

For example, if an investor opt for bank FD, which provide moderate return with minimal
risk. But as he moves ahead to invest in capital protected funds and profit bonds that give out
more return which is slightly higher as compared to bank deposits but the risk involved also
increases in the same proportion.

Thus investor choose to buy mutual funds instead of individual securities as mutual funds

offer diversification, convenience and lower costs. But remember it does not eliminate your
risk completely.

Which means that if investor decide to invest in equity market or in debt market through
mutual funds the risk associated with those markets still remain with investor. Maybe the
impact of that through the mutual fund is much less then as compared to if investor were to
invest directly in those.
 FIGURE 1.1 Risk Return Matrix

HISTORY OF MUTUAL FUNDS IN INDIA

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 of India. The history of mutual
funds in India can be broadly divided into four distinct phases
FIRST PHASE 1964-1987

Unit Trust of India (UTI) was established in 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. 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)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year
in which the first Mutual Fund Regulations came into being, under which all mutual funds,
except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged
with Franklin Templeton) was the first private sector mutual fund registered in July 1993.

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.
The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and acquisitions.
As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805
crores. The Unit Trust of India with Rs. 44,541 crores of assets under management was way
ahead of other mutual funds.
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, 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 growth.
The graph indicates the growth of assets over the years.

FIGURE 1.2 GROWTH IN ASSET UNDER MANAGEMENT

ADVANTAGES OF MUTUAL FUNDS

Mutual funds are currently the most popular investment vehicle and provide several
advantages to investors, including the following:

1.Diversification
To diversify is to reduce risk. Investing requires in depth research and analysis which usually
takes a long period of time. Often, people do not have so much time. Mutual funds are
managed by fund managers who invest money in a manner that allows diversification.  Thus,
your investments are diversified without you having spent too much time and effort.

 2. Professional Management

Mutual funds are managed by qualified and professional experts. Thus, to ensure your money
is invested in the right places, you only have to choose the right mutual fund. That is much
easier than constantly monitoring investments.

Once invested in a mutual fund, you can relax with the knowledge that an expert will make
necessary changes to the portfolio whenever required.

3. Simplicity
Investing in mutual funds is much easier and simpler. The research and information
collection is done by the mutual funds themselves. All you have to do then is analyse the
performance of mutual funds.

Mutual fund dealers allow you to compare the funds based on metrics such as level of risk,
return, and price. Because the information is easily accessible, you, the investor, is able to
make wise decisions.

 4. Liquidity
One of the advantages of mutual funds that is often overlooked is liquidity.  In financial
jargon, liquidity basically refers to the ability of being able to convert your assets to cash with
relative ease.

Mutual funds are considered liquid assets since there is high demand for many of the funds
in the marketplace. Since this is the case, you can retrieve money from a mutual fund very
quickly.

5. Costs
Mutual funds are one of the best investment options considering the costs involved. If you
hire a portfolio management service, you’ll typically be charged 2% to 3% of your total
investments per year.

6. Tax Efficiency
Mutual funds are relatively more tax-efficient than other types of investments. Long-term
capital gain tax on equity mutual funds is zero. That means if you sell your investments one
year after purchase, you pay no tax.For debt funds, long-term capital gains apply when you
hold them for 3 years. Apart from this, there are a certain class of funds, called ELSS funds,
that are exempt under section 80c up to a limit of Rs 1.5L.

7.Selection of Mutual Funds

Mutual Funds come with different types – this allows investors to invest in particular type
depending on your goals. Depending on you goals, you can choose the appropriate category
to invest in. Here are some examples
 1. For parking money for very short term, you can invest in liquid funds
2. For investing for short-term duration like 1 to 3 years, you can invest in Ultra Short
Term Funds
3. For Tax saving, there are tax saving funds
4. For Long-term investing there are equity funds. In equity funds also, one can choose
from high-risk funds like mid cap and small cap funds to relatively less risky funds like
large cap and diversified funds
5. For people who want to take a middle approach, there are balanced funds.
 

8. You can start with very small amounts

Unlike other investments like real estate or investing directly in stocks, mutual funds allow
you to start as small as Rs 500. One can start with mutual funds with as low as Rs 500 or Rs
1000

 9. Safe and transparent

Investing in mutual funds is very transparent. All mutual funds companies come under the
purview of SEBI and they need to make necessary disclosures. All the stocks they hold are
known to you. The historical performance is all out in public. Fund managers qualification
and track record are known. The NAV (net asset value) of the fund is updated every day.
Mutual funds investments are also very safe as the transaction happens in a very transparent
way.

 11. Option to choose SIP or Lump sum

Mutual funds also give you the flexibility to invest through SIP (systematic investment plan)
or through lump sum.

DISADVANTAGE OF MUTUAL FUNDS

1. No Insurance
Mutual funds, although regulated by the government, are not insured against losses.
The Federal Deposit Insurance Corporation (FDIC) only insures against certain losses at
banks, credit unions, and savings and loans, not mutual funds.
That means that despite the risk-reducing diversification benefits provided by mutual funds,
losses can occur, and it is possible (although extremely unlikely) that investor could even lose
his entire investment.

2. Dilution
Although diversification reduces the amount of risk involved in investing in mutual funds, it
can also be a disadvantage due to dilution. For example, if a single security held by a mutual
fund doubles in value, the mutual fund itself would not double in value because that security
is only one small part of the fund's holdings. By holding a large number of different
investments, mutual funds tend to do neither exceptionally well nor exceptionally poorly.

3. Fees and Expenses

Most mutual funds charge management and operating fees that pay for the fund's
management expenses (usually around 1.0% to 1.5% per year for actively managed funds). In
addition, some mutual funds charge high sales commissions, 12b-1 fees, and redemption fees.
And some funds buy and trade shares so often that the transaction costs add up significantly.

4.Poor Performance
Returns on a mutual fund are by no means guaranteed. In fact, on average, around 75% of all
mutual funds fail to beat the major market indexes, and a growing number of critics now
question whether or not professional money managers have better stock-picking capabilities
than the average investor.

5.Loss of Control
The managers of mutual funds make all of the decisions about which securities to buy and
sell and when to do so. This can make it difficult for you when trying to manage your
portfolio. You also should remember that you are trusting someone else with your money
when you invest in a mutual fund.

6.Trading Limitations
Although mutual funds are highly liquid in general, most mutual funds (called open-ended
funds) cannot be bought or sold in the middle of the trading day.

7. Inefficiency of Cash Reserves

Mutual funds usually maintain large cash reserves as protection against a large number of
simultaneous withdrawals. Although this provides investors with liquidity, it means that some
of the fund's money is invested in cash instead of assets, which tends to lower the investor's
potential return.

TYPES OF MUTUAL FUNDS

Mutual funds can be classified based on following parameters

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FIGURE 1.3 TYPES OF MUTUAL FUNDS

Types of Mutual Funds based on structure

 Open-Ended Funds: These are funds in which units are open for purchase or
redemption through the year. All purchases/redemption of these fund units are done at
prevailing NAVs. Basically these funds will allow investors to keep invest as long as they
want. There are no limits on how much can be invested in the fund. Which means that
investors can withdraw their funds at any time they want thus giving them the liquidity
they need
.
 Close-Ended Funds: These are funds in which units can be purchased only during
the initial offer period. Units can be redeemed at a specified maturity date. Once the units
or stocks are bought, they cannot be sold back to the mutual fund, instead they need to be
sold through the stock market at the prevailing price of the shares.

 Interval Funds: These are funds that have the features of open-ended and close-ended
funds in that they are opened for repurchase of shares at different intervals during the fund
tenure. The fund management company offers to repurchase units from existing
 unitholders during these intervals. If unitholders wish to they can offload shares in favour
of the fund.

Types of Mutual Funds based on investment objective

 Growth funds: Under these schemes, money is invested primarily in equity stocks

with the purpose of providing capital appreciation. They are considered to be risky funds
ideal for investors with a long-term investment timeline. Since they are risky funds they
are also ideal for those who are looking for higher returns on their investments.

 Income funds: Under these schemes, money is invested primarily in fixed-income

instruments e.g. bonds, debentures etc. with the purpose of providing capital protection
and regular income to investors.

 Liquid funds: Under these schemes, money is invested primarily in short-term or very

short-term instruments e.g. T-Bills, CPs etc. with the purpose of providing liquidity. They
are considered to be low on risk with moderate returns and are ideal for investors with
short-term investment timelines.

Types of Mutual Funds based on asset class

 Equity Funds: These are funds that invest in equity stocks/shares of companies.

These are considered high-risk funds but also tend to provide high returns. Equity funds
can include specialty funds like infrastructure, fast moving consumer goods and banking to
name a few.
 Debt Funds: These are funds that invest in debt instruments e.g. company
debentures, government bonds and other fixed income assets. They are considered safe
investments and provide fixed returns. These funds do not deduct tax at source so if the
earning from the investment is more than Rs. 10,000 then the investor is liable to pay the
tax on it himself.
 Balanced or Hybrid Funds:  These are funds that invest in a mix of asset classes. In
some cases, the proportion of equity is higher than debt while in others it is the other way
round. Risk and returns are balanced out this way. An example of a hybrid fund would be
Franklin India Balanced Fund-DP (G) because in this fund, 65% to 80% of the investment
is made in equities and the remaining 20% to 35% is invested in the debt market. This is so
because the debt markets offer a lower risk than the equity market.

Other Mutual Funds

Money Market Funds:  These are funds that invest in liquid instruments e.g. T-Bills, CPs
etc. They are considered safe investments for those looking to park surplus funds for
immediate but moderate returns. Money markets are also referred to as cash markets and
come with risks in terms of interest risk, reinvestment risk and credit risks.
 Tax-Saving Funds (ELSS): These are funds that invest primarily in equity shares.
Investments made in these funds qualify for deductions under the Income Tax Act. They
are considered high on risk but also offer high returns if the fund performs well.

 Pension Funds: Pension funds are mutual funds that are invested in with a really
long term goal in mind. They are primarily meant to provide regular returns around the
time that the investor is ready to retire. The investments in such a fund may be split
between equities and debt markets where equities act as the risky part of the investment
providing higher return and debt markets balance the risk and provide lower but steady
returns. The returns from these funds can be taken in lump sums, as a pension or a
combination of the two.

 Sector Funds: These are funds that invest in a particular sector of the market e.g.
Infrastructure funds invest only in those instruments or companies that relate to the
infrastructure sector. Returns are tied to the performance of the chosen sector. The risk
involved in these schemes depends on the nature of the sector.

 Index Funds: These are funds that invest in instruments that represent a particular
index on an exchange so as to mirror the movement and returns of the index e.g. buying
shares representative of the BSE Sensex.

 Fund of funds: These are funds that invest in other mutual funds and returns depend
on the performance of the target fund. These funds can also be referred to as multi
manager funds. These investments can be considered relatively safe because the funds that
investors invest in actually hold other funds under them thereby adjusting for risk from any
one fund.

 Real estate funds: These are the funds that invest in companies that operate in the
real estate sectors. These funds can invest in realtors, builders, property management
companies and even in companies providing loans. The investment in the real estate can be
made at any stage, including projects that are in the planning phase, partially completed
and are actually completed.

 Gift Funds: Gift funds are mutual funds where the funds are invested in government
securities for a long term. Since they are invested in government securities, they are
virtually risk free and can be the ideal investment to those who don’t want to take risks.

 Exchange traded funds: These are funds that are a mix of both open and close ended
mutual funds and are traded on the stock markets. These funds are not actively managed,
they are managed passively and can offer a lot of liquidity. As a result of their being
managed passively, they tend to have lower service charges (entry/exit load) associated
with them.
 NET ASSET VALUE (NAV)
Since each owner is a part owner of a Mutual Fund, it is necessary to establish the value of
his part. In other words, each share or unit that an investor holds need to be assign value.
Since the unit held by investor evidence the ownership of fund’s asset, the value of the
total asset of the fund when divided by the total numbers of units issued by the mutual
fund give us the value of one unit. This is generally called the NET ASSET VALUE of
one unit or one share. The value of investor’s part ownership is thus determined by the
NAV of the number of units held.

Calculation of NAV
Let us see an example, if the value of a fund’s asset stands at Rs. 100 and it has 10 investor
who have bought 10 units each, the total number of units issued are 100, and the value of 1
unit is Rs. 10 (1000/100). If a single investor itself owns 3 unit, the value of his ownership
of fund will be Rs. 30 (1000/100*3). Note that the value of funds investment will keep
fluctuating with the market price movements, causing the net asset value to also fluctuate.

What are the charges involved in investing in a mutual fund? 

There are broadly two types of charges:

1. One time charges:

Entry Load: The charges that are levied when the units are being purchased. The mutual
fund would sell the unit price higher than the NAV. At present Mutual Funds cannot charge
entry load.

Exit Load: The mutual fund would buy back the units at rate lower than the NAV. There are
no fixed exit loads which are charged. It varies based on the scheme. The current practice is
the funds could charge any way from 0.50% to 3.00% depending on the holding period. If the
investors continue to hold the investment beyond the specified period, no exit load is
charged. 

Transaction Charges: These charges are one time charges applicable when the money is
invested. 

2. Recurring Charges (Ongoing expenses/Fund Running Expenses):

The expenses are charged on Daily Net Assets of the specific mutual fund. The guideline
rates are given by the regulator and Mutual Funds cannot charge more than the stipulated
structure. The expenses are deducted every day from the Net Assets of the fund and NAV
declared is after adjusting the expenses 
 CHAPTER 2
WORKING OF MUTUAL FUNDS

FIGURE2.1 MUTUAL FUND CONCEPT

The fund sponsor raises money from the investing public, who become unitholders. It then
invests the proceeds in securities (stocks, bonds and money market instruments) related to the
fund's investment objective. The fund provides shareholders with professional investment
management, diversification, liquidity and investing convenience. The income generated by
selling securities or capital appreciation of these securities is passed on to the investors in
proportion to their investment in the scheme. For these services, the fund sponsor charges
fees and incurs expenses for operating the fund, all of which are charged proportionately
against a shareholder's assets in the fund. 

The investment are divided into units and the value of the units will be reflected in the Net
Asset Value or NAV of the unit. Mutual fund shares are bought and sold on the basis of a
fund's net asset value (NAV). NAV is determined by the daily closing value of the underlying
securities in a fund's portfolio (total net assets) on a per share basis.
STRUCTURE OF A MUTUAL FUND

FIGURE 2.2 STRUCTURE OF MUTUAL FUND IN INDIA

The Fund Sponsor

SEBI regulations define Sponsor as any person who either itself or in association with
another body corporate establishes a mutual fund. Sponsor sets up a mutual fund to earn
money by doing fund management through its subsidiary company which acts as Investment
manager of the fund. Largely, a sponsor can be compared with a promoter of a company.
Sponsors activities include setting up a Public Trust under Indian Trust Act, 1882 (the mutual
fund), appointing trustees to manage the trust with the approval of SEBI, creating an Asset
Management Company under Companies Act, 1956 (the Investment Manager) and getting
the trust registered with SEBI.

Trustees 
The trust is created through a document called the trust deed which is executed by the fund
sponsor in favour of the trustees. Trustees manage the trust and are responsible to the
investors in the mutual funds. They are the primary guardians of the unit-holders funds and
assets. Trustees can be formed in either of the following two ways -Board of Trustees, or a
Trustee Company. The provisions of Indian Trust Act, 1882, govern board of trustees or the
Trustee Company. A trustee company is also subject to provisions of Companies Act, 1956.

Asset Management Company 

The Asset Management Company (AMC) is the investment Manager of the Trust. The
sponsor, or the trustees is so authorized by the trust deed, appoints the AMC as the
“Investment Manager” of the trust (Mutual Fund) via an agreement called as ‘Investment
Management Agreement’. An asset management company is a company registered under the
Companies Act, 1956. Sponsor creates the asset management company and this is the entity,
which manages the funds of the mutual fund (trust). The mutual fund pays a small fee to the
AMC for management of its fund. The AMC acts under the supervision of Trustees and is
subject to the regulations of SEBI too.

Custodian 
Though the securities are bought and held in the name of trustees, they are not kept with
them. The responsibility of safe keeping the securities is on the custodian. Securities, which
are in material form, are kept in safe custody of a custodian and securities, which are in “De-
Materialized” form, are kept with a Depository participant, who acts on the advice of
custodian. Custodian performs a very important back office operation. They ensure that
delivery has been taken of the securities, which are bought, and that they are transferred in
the name of the mutual fund. They also ensure that funds are paid out when securities are
bought. Custodians keep the investment account of the mutual fund. They collect and account
for the dividends and interest receivables on mutual fund investments. They also keep track
of various corporate actions like bonus issue, rights issue, and stock split; buy back offers,
open offer etc and act on these as per instructions of the Investment manager. Responsibility
of custodian.
Following are the responsibilities of a custodian:
(i) Provide post-trading and custodial services to the Mutual Fund; (ii) Keep securities and
other instruments belonging to the Scheme in safe custody; (iii) Ensure smooth
inflow/outflow of securities and such other instruments as and when necessary, in the best
interests of the unit holders; (iv) Ensure that the benefits due to the holdings of the Mutual
Fund are recovered; and (v) Be responsible for loss of or damage to the securities due to
negligence on its part or on the part of its approved agents. The Custodian normally charge
portfolio fee, transaction fee and out-of -pocket expenses in accordance with the terms of the
Custody Agreement and as per any modification made thereof from time to time.

Registrar and transfer agent 

A mutual fund manages money of many unit-holders across cities and towns of the country.
Investor servicing not only becomes important but challenging as well. This would typically
include processing investors’ application, recording the details of investors, sending them
account statements and other reports on periodical basis, processing dividend payouts,
making changes in investor details and keeping investor records updated by adding details of
new investors and by removing details of investors who withdraw their funds from the mutual
funds. It is very impractical and expensive for any mutual fund to have adequate workforce
all over India for this purpose. Instead, they use entities called as Registrars and transfer
agents, which generally provide services to many mutual funds. This ensures quality services
across all location and keeps the costs lower for the unit-holders

Regulation
Securities and Exchange Board of India (SEBI) is the primary regulator of mutual funds in
India. SEBI is also apex regulator of capital markets. Issuance and trading of capital market
instruments and the regulation of capital market intermediaries is under the purview of SEBI.
ASSOCIATION OF MUTUAL FUND IN INDIA (AMFI):

The Association of Mutual Funds in India (AMFI) is dedicated to developing the Indian
Mutual Fund Industry on professional, healthy and ethical lines and to enhance and maintain
standards in all areas with a view to protecting and promoting the interests of mutual funds
and their unit holders.

AMFI, the association of SEBI registered mutual funds in India of all the registered Asset
Management Companies, was incorporated on August 22, 1995, as a non-profit organisation.
As of now, all the 42 Asset Management Companies that are registered with SEBI, are its
members.

THE OBJECTIVE OF ASSOCIATION OF MUTUAL FUND IN INDIA

The objective are as follows:

 This mutual fund association of India maintains high professional and ethical
standards in all area of operation of the industry.
 It also recommends and promote the top class business practices and code of conduct
which is followed by members and related people engage in the activities of mutual
fund and asset management. The agencies who are by any means connected or
involved in the field of capital markets and financial services also involved in this
code of conduct of the association.
 AMFI interact with SEBI and works according to SEBI guidelines n the Mutual fund
industry.
 AMFI undertake all the India awareness programme for investors in order to promote
proper understanding of the concept and working of mutual funds.
 At last but not the least association of mutual fund of India also disseminate
information on Mutual Fund industry and undertakes studies and research either
directly or in association with order bodies.
 CHAPTER 3
EDELWEISS BROKING LIMITED AND SERVICES
PROVIDED BY EDELWEISS
EDELWEISS started its journey in Mumbai in the year 1995, by two IIM graduates, Mr.
Rashesh Shah and Mr. Venkat Ramaswami. Edelweiss was incorporated on November 21,
1995 as a public limited company and received its certificate for commencement of business
on January 16, 1996. It commenced investment banking activities & registered with SEBI as
a 'Category I Merchant Banker' [as defined under the Securities and Exchange Board of India
[Merchant Bankers] Rules, 1992s] and thereafter as a 'Portfolio Manager' [as defined under
the Securities & Exchange Board of India [Portfolio Managers] Rules, 1993s] & as an
'underwriter' under the Securities & Exchange Board of India [Underwritings] Regulations,
1993. Entered the business of securities broking in the year 2002 by acquiring Rooshnil
Securities Private Limited which was later changed to Edelweiss Securities Private Limited &
is presently known as Edelweiss Securities Limited. The year 2004 witnessed the foray of
Comp. into the businesses of insurance advisory as well as commodities broking and trading.
The business of insurance advisory is carried through the subsidiary, Edelweiss Insurance
Brokers Limited. The subsidiary, ECAL Advisors Limited carries on the business of
commodities broking & trading. The Comp. also has its presence in non banking financial
activities through its subsidiaries, Crossborder Investments Private Limited [acquired in the
year 2000s] and ECL Finance Limited [incorporated in the year 2005s] which is NBFC's.
Edelweiss Real Estate Advisors Private Limited, which was previously our subsidiary and
our subsidiary Edelweiss Trustee Services Private Limited, were incorporated in the year
2006, for launching the company first real estate fund which was registered with the SEBI as
a 'Venture Capital Fund' [as defined under the SEBI [Venture Capital Funds’] Regulations,
1996s]

OVERVIEW

The company practice this core thought of “Create Ideas, Create Values” that has led to
Edelweiss becoming one of the leading financial services company in India. Its current
businesses include investment banking, securities broking, and investment management. It
provides a wide range of services to corporations, institutional investors and high net-worth
individuals. The core inspiring thought of ‘ideas creating wealth and values are protecting it’
is translated into an approach that is led by entrepreneurship and creativity and protected by
intellectual rigor, research and analysis. The company is leading provider of financial
services products and solutions to many HNI around the country.
FINANCIAL PERFORMANCE AT A GALANCE

FIGURE 3.1 FINANCIAL PERFORMANCE OF EDELWEISS

PRODUCT AND SERVICES

INVESTMENT BANKING

Overview
Edelweiss Investment Banking business is dedicated to providing corporations, entrepreneurs
and investors, the highest quality independent financial advice and transaction execution. Our
professionals offer a full range of services and transaction expertise, including private
placements of equity, capital raising services in public markets, mezzanine and convertible
debt, mergers and acquisition and restructuring advisory services. We have a track record of
successfully closing more than 100 transactions to date.

Offerings

 Private Equity Advisory

We have been a leading Private Equity advisor for over a decade and have developed a strong
expertise across industries which enable us to recognize emerging industry themes and
position transactions within the context.
  Structured Finance Advisory
Over the years, we have built up significant expertise in structuring appropriate financing
solutions for client specific situations and identifying and placing the transaction with
institutional investors. Our portfolio of solutions comprises the following Promoters Funding
and Acquisition Financing.

 Mergers and Acquisitions Advisory

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

 Real Estate Advisory

Our advisory solutions are primarily focused on capital rising and cover the optimal financing
mix, project valuation, investment structuring and accomplishing capital raising at either the
enterprise level or the asset level. We manage Real Estate IPOs, QIPs, advise enterprise level
private equity financings, and enterprise level mezzanine financing and structured debt. We
have completed over $ 700 million in capital rising in the last 18 months across multiple
formats.

 Equity Capital Markets

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

 Infrastructure Advisory
A critical ingredient for sustainable development in India is the pressing need for
Infrastructure creation on a commercially viable basis. This signifies immense opportunities
and challenges for the sector. Recognizing this, Edelweiss’ new Infrastructure practice has
been formed to provide innovative solutions tailored to the unique financing and advisory
requirements of Indian infrastructure projects and developers. Our team has a dedicated focus
on the infrastructure sector, with considerable experience, a deep understanding and a vast
network of key relationships. We provide Infrastructure project companies and developers the
full range of capital and advisory services.

 Debt Restructuring Advisory

At Edelweiss we have a very competent team offering comprehensive debt restructuring
solutions, both under the formal Corporate Debt Restructuring (CDR) mechanism as well as
negotiations with lender/consortium of lenders. Our team of senior ex-bankers and
restructuring specialists have unparalleled experience of restructuring debts worth over Rs.
75,000 crores, and an ability to provide complete solutions and support to the Corporate.

INSTITUTIONAL EQUITIES

Edelweiss Capital’s Institutional Equities Business (IE) has become one of the top five
domestic brokerage houses and top three derivatives desks. It is the only brokerage on the
Street with a quant desk that provides a wide product range, servicing all investor categories.
The innovative mindset, unparalleled research, agile sales teams, and intensive execution
systems have enabled us to relentlessly service our clients in different ways. It caters to a
wide clientele comprising leading domestic and international institutional investors, including
Pension Funds, Hedge Funds, Mutual Funds, insurance companies, and banks.

ASSET MANAGEMENT

Overview
Edelweiss Asset Management offers a range of investment products and advisory services
across the risk return spectrum to individual and institutional investors. Our close focus on
client requirements is our inspiration in designing products which offer the best opportunity
for asset growth with a constant focus on risk and preservation of capital.

Offerings

 Portfolio Management
Edelweiss offers the discerning investor an opportunity to access its asset management
expertise through its portfolio management service (PMS). The basic objective of this
product is to provide unbiased investment management strategy based on rigorous
fundamental analysis while taking cognizance of market conditions and movements.

 Mutual Funds
Edelweiss Asset Management Limited follows a research based and process oriented
investment approach. Edelweiss Asset Management Limited is committed to observe the
highest ethical standards while deploying investors’ monies, servicing investors and dealing
with business partners.

WEALTH MANAGEMENT

Overview

It is a specialized profession where our experts combine their efforts to meet the wealth
planning, investment, and financial management needs of individuals, families, family
offices, or corporate. Edelweiss Wealth Management takes one step closer to you, by
providing an "all-in-one approach”. Advice on asset allocation and thereby creating
customized financial solutions for HNWIs, NRIs, Trusts and Corporate. We offer advisory
services on Structured Products, Portfolio Management, Mutual Funds, Insurance, Derivative
Strategies, Direct Equity, IPOs, Real Estate Funds and Art Funds.
PRIVATE CLIENT BROKERAGE

Overview
The Private Client Services Group at Edelweiss is focused on providing products, strategies
and services to High Networth Individuals and Corporate Clients. We have geographic reach
through our Branches, Channel Partners & Investment Consultants in over 19 locations in
India. The PCG team has highly trained equity professionals, who act as your Equity
Advisor. Our ESL Equity Advisor proactively helps you take informed investment decisions
and build a healthy portfolio. We draw on our strong presence and industry leadership to
develop a portfolio of offerings designed to serve the spectrum of financial needs. Our main
objective is to provide clients with all the tools and services they need to reduce the
administrative burdens of managing money and focus on what you do best - maximizing your
trading performance, building your business, and attracting new sources of capital.

Offerings

 Cash Equity
Providing research based advice on select stocks from across sectors to meet client’s
investment requirement ranging from positional trading to long term investment goals. For
our clients I provide ongoing portfolio consultation with a dedicated relationship manager as
one point contact for all day-to-day execution of trades and other service requirements such
as advisory on investments.

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

.  Financing
I offer various products and services to individuals and corporates with a close focus on client
requirements while designing our products. Over a period of time I have been offering short
term loans against securities and/or to buy new securities. I also provide finance for
investment in primary market issues. I help promoters by financing against their share
holding to meet their business requirements, expansion of businesses and diversification of
the lines business. I possess expertise in financing short and long term loan facility, risk
analysis, transfer and assessment besides a broad spectrum of services.

FINANCING

Overview
Edelweiss Housing Finance Limited (EHFL) is a Housing Finance Company incorporated
under the aegis of the National Housing Bank (NHB). It is part of the Edelweiss Group of
Companies. EHFL has an array of loan solutions which can be tailored to your requirements.
If you’re looking for a Home Loan, do apply to EHFL for the highest loan amount in the
shortest time.

Offerings

 Home Loans
 Loan against property
 25 year loan - The Newly launched 25 year Home loans help you purchase a property
and repay in lower / easily manageable instalments
 Refinancing
If you have already purchased a property and used your own funds or borrowed from
friends or relatives for the same, I could re-finance the same.
 Balance transfer & top up
If you already have a Home loan or a Loan against Property running with any Bank
or other financier, you could move the same to EHFL a better rate of interest and a
longer tenor, giving you the advantage of a lower EMI. You can also avail of an
additional loan against same property.
 CHAPTER 4
MUTUAL FUND vs OTHER INVESTMENT
From investor view point mutual funds have several advantage such as:

 Professional management and research to select quality securities.

 Spreading risk over a large quantity of stock whereas the investor has limited to buy
only a hand full of stocks. The investor is not putting all his eggs in one basket.
 Ability to add funds at set amounts and smaller quantities such as $100 per month.
 Ability to take advantage of the stock market which has generally outperformed other
investment in the long run.
 Fund manager are able to buy securities in large quantities thus reducing brokerage
fees.

However there are some disadvantages with mutual funds such as:

 The investor must rely on the integrity of the professional fund manager.
 Fund manager fees may be unreasonable for the services rendered.
 The fund manager may not pass transaction savings to the investor.
 The fund manager is not liable for poor judgment when the investor’s fund loses
value.
 There may be too many transaction in the fund resulting in higher fee/cost to the
investor – This is sometimes call “Churn and Earn”.
 Prospectus and Annual report are hard to understand.
 Investor may feel a lost of control of his investment dollars.

There may be restrictions on when and how an investor sells/redeems his mutual fund
shares

COMPANY FIXED DEPOSITS VERSUS MTUAL FUNDS

Fixed deposits are unsecured borrowings by the company accepting the deposit. Credit rating
of the fixed deposit program is an indication of the inherent default risk in the investment.

The money of investors in a mutual fund scheme are invested by the AMC in specific
investments under that scheme. These investments are held and managed in-trust for the
benefit of scheme’s investors. On the other hand, there is no such direct correlation between a
company’s fixed deposit mobilisation, and the avenues where these resources are deployed.

A corollary of such linkage between mobilisation and investment is that the gains and
losses from the mutual fund scheme entirely flow through to the investors. Therefore, there
can be no certainty of yield, unless a named guarantor assures a return or, to a lesser extent, if
the return under a fixed deposit is certain, subject only to the default risk of the borrower.
Both fixed deposits and mutual funds offer liquidity, subject to some differences:

The provider of liquidity in the case of fixed deposits is the borrowing company. In mutual
funds, the liquidity provider is the scheme itself or the market.

The basic value at which fixed deposits are en cashed is not subject to a market risk.
However, the value at which units of a scheme are redeemed depends on the market. If
securities have gained in value during the period, then the investor can even earn a return that
is higher than what he anticipated when he invested. But he could also end up with a loss.

Early encashment of fixed deposits is always subject is always subject to a penalty

charged by the company that accepted the fixed deposit. Mutual fund schemes also have the
option of charging a penalty on “early” redemption of units . if the NAV has appreciated
adequately, then even after the exit load, the investor could earn a capital gain on his
investment.

BANK FIXED DEPOSITS VERSUS MUTUAL FUND:

Bank fixed deposits are similar to company fixed deposits. The major difference is that banks
are generally more stringently regulated than companies. They even operate under stricter
requirements regarding Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio.

While the above are causes for comfort, bank deposits too are subject to default risk.
However, given the political and economic impact of bank defaults, the government as well
as Reserve Bank of India try to ensure that banks do not fail.

Further, bank deposits up to Rs 100,000 are protected by the Deposit Insurance and
Credit Guarantee Corporation, so long as the bank has paid the required insurance premium
of 5 paise per annum for every Rs 100 of deposits. The monetary ceiling of Rs 100,000 is for
all the deposits in all the branches of a bank, held by the depositor in the same capacity and
right.

BANKS MUTUAL FUNDS

Returns low Better
Administrative exp. High Low
Risk Low Moderate
Investment options Less More
Network High penetration Low but improving
Liquidity At a cost Better
Quality of assets Not transparent Transparent
Interest calculation Quarterly i.e. 3, 6, 9 & 12 Every month
Guarantor Guarantor is needed Guarantor is not needed
Account Needed Not needed
BONDS AND DEBENTURES VERSUS MUTUAL FUNDS

As in the case of fixed deposits, credit rating of the bond/ debenture is an indication of the
inherent default risk in the investment. However, unlike FD , bonds and debentures are
transferable securities.

While an investor may have an early encashment option from the issuer, generally
liquidity is through a listing in the market.

Implications of this are:

 If the security does not get traded in the market, then the liquidity remains on paper.
In this respect, an open end scheme offering continuous sale/re-purchase option is
superior.
 The value that the investor would realise in an early exit is subject to market risk. The
investor could have a capital gain or a capital loss. This aspect is similar to a MF
scheme.
It is possible for a professional investor to earn attractive returns by directly
investing in the debt market, and actively managing the positions. Given the market
realities in India, it is difficult for most investors to actively manage their debt
portfolio. Further, at times, it is difficult to execute trades in debt market even when
the transaction size is as high as Rs 1 crore. In this respect, investment in a debt
scheme would be beneficial.

Debt securities could be backed by a hypothecation or mortgage of identified

fixed and or current assets. In such a case, if there is a default, the identified asstes
become available for meeting redemption requirements. An unsecured bond/
debenture is for all practical purposes like a fixed deposit, as far as access to assets is
concerned.
The investment of a mutual funds scheme are held by a custodian for the benefit of
investor in the scheme. Thus, the securities that relate to a scheme are ring-fenced for
the benefit of its investors.

EQUITY VERSUS MUTUAL FUNDS

Investment in both equity and mutual funds are subjects to market risk.
An investor holding an equity security that is not traded in the market place
has a problem in realising value from it. But investment in an open-end mutual fund
eliminates this direct risk of not being able to sell the investment in the market. An
indirect risk remains, because the scheme has to realise its investment to pay investor.
The AMC is however in a better position to handle the situation.
Another benefit of equity mutual fund schemes is that they give investors the
benefit of portfolio diversification through a small investor. For instance, an investor
can take an exposure to the index by investing a mere Rs 5000 in an index fund.
Advantages of Mutual funds over stocks
 A mutual fund offer a great deal of diversification starting with the very first
dollar invested, because a mutual fund may own tens or hundreds of different
securities. This diversification helps reduce the risk of loss because even if any
holding tanks, the overall value doesn’t drop by much. If you’re buying
individual stocks, you can’t get much diversity unless you have $ 10K or so.
 Small sums of money get you much further in mutual funds than in stocks.
First, you can set up an automatic investment plan with many fund companies
that lets you put in as little as $50 per month. Second, the commissions for
stock purchases will be higher than the cost of buying no-load fund. Smaller
sized purchases of stocks will have relatively high commissions on a
percentage basis, although with the $10 trade becoming common, this is a bit
less of a concern than it once was.
 You can exit a fund without getting caught on the bid/ask spread.
 Funds provide a cheap and easy method for reinvesting dividends.
 Last but most certainly not least, when you buy a fund you’re in essence hiring
a professional to mange your money for you. That professional is monitoring
the economy and the markets to adjust the fund’s holdings appropriately.

Advantages of stock over Mutual Funds

 The opposite of the diversification issue: if you own just one stock and it
doubles, you are up 100%. If a mutual fund owns 50 stocks and one
doubles, it is up 2%. On the other hand, if you own just one stock and it
drops in half, you are down 50% but the mutual fund is down 1% . cuts
both ways
 If you hold your stocks several years, you aren’t nicked a 1% or so
management fee every year
 You can take your profits when you want to and won’t inadvertently buy a
tax liability.
 You can do a covered write option strategy
 You can structure your portfolio differently from any existing mutual fund
portfolio.

LIFE INSURANCE VERSUS MUTUAL FUNDS

Ife insurance is a hedge against risk and not really an investment option. So, it
would be wrong to compare life insurance against ay other financial product.

Occasionally on account of market inefficiencies or mispricing of products in

India, life insurance products have offered a return that is higher than a
comparable “safe” fixed return security thus, you are effectively paid for
getting insured. Such opportunities are not sustainable in long run.
 CHAPTER 5
FUTURE PROSPECT OF MUTUAL FUND IN
INDIA
The Future of Mutual Funds In India is quite bright. Mutual Funds are one of the most
popular forms of investments as these funds are diversification, professional management,
and liquidity. It has been estimated that by March-end 2010, the mutual fund industry of
India will reach Rs 40,90,000crore, taking into account the total asset of the Indian
commercial banks. The mutual fund industry is expected to grow at a rate of 13.4% over the
next 10 years.

 The growth rate was 100 % in 6 previous years.

 The saving rate in India is 23 %.

 There is a huge scope in the future for the expansion of the mutual funds industry.

 A number of foreign based assets management companies are venturing into Indian
markets.

 The Securities Exchange Board of India has allowed the introduction of commodity
mutual funds.

 The emphasis is being given on the effective corporate governance of Mutual Funds.

 The Mutual funds in India has the scope of penetrating into the rural and semi urban
areas.

 Financial planners are introduced into the market, which would provide the people
with better financial planning.

 Number of foreign AMC are in the queue to enter the Indian markets like Fidelity
Investments, US based, with over US $1 trillion assets under management worldwide.

 SEBI allowing the MF’s to launch commodity mutual funds.

 Emphasis on better corporate governance

 Trying to curb the late trading practices

 Introduction of Financial Planners who can can provide need based advice
MF JARGON

Net asset value (NAV)

Net asset value is market value of the assets of the scheme minus its liabilities. The per unit
NAV is the net asset value of the scheme divided by the number of unit outstanding on the
valuation date.

Sale price
Sale price is the price you pay when you invest in a scheme, also called Offer Price. It may
include a sales load.

Repurchase price
It is the price at which a close ended schemes repurchase its units and it may include a back
ended load. This is also called Bid Price.

Redemption price
It is the price at which open ended scheme repurchase their unit and close ended schemes
redeem their unit at maturity. Such prices are NAV related

Sales load
It is a charge collected by a scheme when its sells a unit. Also called “Front-end” load.
Schemes that do not charge a load are called ‘no load” schemes.

Repurchase or ‘Bank-end’ Load

It is a charge collected by a scheme when it buys back the units from the unit holder.
 CONCLUSION

Mutual funds now represent perhaps most appropriate investment opportunity for most
investors. As financial markets become more sophisticated and complex, investors need a
financial intermediary who provides the required knowledge and professional expertise on
successful investing. As the investor always try to maximise the risk. Mutual fund satisfies
these requirement by providing attractive return with affordable risks. The fund industry has
already overtaken the banking industry, more funds being under mutual fund management
than deposited with banks. With the emergence of tough competition in this sector mutual
funds are launching a variety of schemes which caters to the requirement of the particular
class of investor.

The stock market has been rising for over three years now. This is turn has not only
protected the money invested in funds but has also to helped grow these investments.

This has also instilled greater confidence among fund investor who are investing more into
the market through the MF route than even before.