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A REPORT ON

MARKET PENETRATION OF MUTUAL FUND


(SOUTH DELHI)

BY
VIKAS SHARMA
MBA 2005-07

STANDARD CHARTERED ASSET MANAGEMENT


COMPANY
H2 CANNAUGHT CIRCUS

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Contract: 3

A REPORT ON
MARKET PENETRATION OF MUTUAL FUND
(SOUTH DELHI)

BY
VIKAS SHARMA
MBA 2005-07

A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF


MBA PROGRAM (CLASS OF 2007)
"ICFAI NATIONAL COLLEGE"

Copies marked list-5

TABLE OF CONTENTS-

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 Acknowledgements 04

 List of tables & illustrations 03

 Abstract summary 05

 Introductions-objectives &limitations 40

 Methodology 06

 Result or findings 44

 Conclusions & or recommendations/suggestion 59

 Appendices 79

 Bibliography 80

 Glossary 81

 On the job training 82

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ACKNOWLEDGEMENTS-

I am thankful to my company guide Mr. Sanyam Sharma for


mentoring me in my SIP project and providing me time-to-time
information related to my projects. Without help of Sanyam sir it was
not possible to complete the project.

I am thankful to my Faculty guide Mr. Lalitya srivastava for guiding


me on weekly basis and pitching me for completion of my SIP
projects on time.

I am thankful to all my friends who have given their full support in


collection of data.

At last I am thankful to all my family members whom support was


essential for me to prepare this complete project on Standard
Chartered Asset Management Company.

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ABSTRACT / SUMMARY -

This project was basically to find out the market penetration of mutual
funds in south Delhi as well as the investors perception about
the mutual funds in Delhi region. I was trying to find out the
investors perception about the mutual funds as well as the other
investment options, which they prefers.

In this project the main task was to Collect the data from customers,
sales officers of the bank and bank officials of ABN AMRO, HDFC,
ICICI, STANDARD CHARTERED AMC and find out the market
penetration of mutual funds and predict the future of mutual funds.

I have started this project to get the complete information about


mutual funds from the investors who have invested in the mutual
funds and from those also who are interested in to invest in the
mutual funds.

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METHODOLOGY-

This report was given by my company guide Mr. Sanyam Sharma


(Area sales officer) of Standard Chartered bank New Delhi. According
to his guidelines and with a strong support by my faculty guide Mr.
Lalitya srivastava .I has prepared it. For the preparation of this project
I have prepared three questionnaires for collecting the data. One for
investors, one for sales persons and one for bank itself.

Regarding collection of data I have decided to collect 200 investor’s


data, 20 sales person’s data and of 10 bank officers’ data. My project
is mainly related to Standard Chartered Bank and in a support with
ABN AMRO Bank, HDFC Bank, ICICI Bank.

After collection of data and analysis I have prepared it and presented


on graph as well explained it with reasons.

For collecting data I have visited to the investors by getting


appointments through phone calls. Some of the data are collected
through telephone itself.

For banks I have taken help of documents of banks, their fund fact
sheets, forms etc.

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Introduction about mutual funds-

Mutual Funds - Concept

A Mutual Fund is a trust that pools the savings of a number of investors


who share a common financial goal. The money thus collected is then
invested in capital market instruments such as shares, debentures and
other securities. The income earned through these investments and the
capital appreciations realized are shared by its unit holders in proportion to
the number of units owned by them. Thus a Mutual Fund is the most
suitable investment for the common man as it offers an opportunity to
invest in a diversified, professionally managed basket of securities at a
relatively low cost. The flow chart below describes broadly the working of
a mutual fund:

Mutual Fund Operation Flow Chart

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Mutual Funds Industry in India

The origin of mutual fund industry in India is with the introduction of the
concept of mutual fund by UTI in the year 1963. Though the growth was
slow, but it accelerated from the year 1987 when non-UTI players entered
the industry.

In the past decade, Indian mutual fund industry had seen dramatic
improvements, both quality wise as well as quantity wise. Before, the
monopoly of the market had seen an ending phase; the Assets Under
Management (AUM) was Rs. 67bn. The private sector entry to the fund
family raised the AUM to Rs. 470 bn in March 1993 and till April 2004; it
reached the height of 1,540 bn.

Putting the AUM of the Indian Mutual Funds Industry into comparison, the
total of it is less than the deposits of SBI alone, constitute less than 11% of
the total deposits held by the Indian banking industry.

The main reason of its poor growth is that the mutual fund industry in India
is new in the country. Large sections of Indian investors are yet to be
intellectuated with the concept. Hence, it is the prime responsibility of all
mutual fund companies, to market the product correctly abreast of selling.

The mutual fund industry can be broadly put into four phases according to
the development of the sector. Each phase is briefly described as under.

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. At the end
of 1988 UTI had Rs.6,700 crores of assets under management.

Second Phase - 1987-1993 (Entry of Public Sector Funds)

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Entry of non-UTI mutual funds. SBI Mutual Fund was the first 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 in 1989 and GIC in 1990. The end of
1993 marked Rs.47,004 as assets under management.

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

This phase had bitter experience for UTI. It was bifurcated into two separate
entities. One is the Specified Undertaking of the Unit Trust of India with
AUM of Rs.29,835 crores (as on January 2003). 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

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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 AUM and with the setting up of a UTI
Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with
recent mergers taking place among different private sector funds, the
mutual fund industry has entered its current phase of consolidation and
growth. As at the end of September, 2004, there were 29 funds, which
manage assets of Rs.153108 crores under 421 schemes.

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THE CONCEPT OF MUTUAL FUND AND MAJOR PLAYERS

The concept of mutual funds in India dates back to the year 1963. The era
between 1963 and 1987 marked the existance of only one mutual fund
company in India with Rs. 67bn assets under management (AUM), by the
end of its monopoly era, the Unit Trust of India (UTI). By the end of the
80s decade, few other mutual fund companies in India took their position
in mutual fund market.

The new entries of mutual fund companies in India were SBI Mutual Fund,
Canbank Mutual Fund, Punjab National Bank Mutual Fund, Indian Bank
Mutual Fund, Bank of India Mutual Fund.

The succeeding decade showed a new horizon in indian mutual fund


industry. By the end of 1993, the total AUM of the industry was Rs. 470.04
bn. The private sector funds started penetrating the fund families. In the
same year the first Mutual Fund Regulations came into existence with re-
registering all mutual funds except UTI. The regulations were further given
a revised shape in 1996.

Kothari Pioneer was the first private sector mutual fund company in India
which has now merged with Franklin Templeton. Just after ten years with
private sector players penetration, the total assets rose up to Rs. 1218.05
bn. Today there are 33 mutual fund companies in India.

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The above chart shows the growth of asset under management
in India from March 1965 to September 2004.in march 1965 there
was only 25 cr. AUM and in September 2004, 153108 cr. was
AUM. Its continuously increasing shows the increasing trends of
mutual funds in India.

Standard Chartered Mutual Fund is well-established fund house and


is sponsored by the Standard Chartered Group.

Standard Chartered Mutual Fund launched its first scheme Grind lays
Super Saver Income Fund in the year July 2000. Since then it
focused on debt for 5 years and launched several innovative products
that went to become bourgeoning categories in the Indian mutual fund
industry.

Some of these were The Dynamic Bond Fund, The Short term Fund
and the Medium Term Fund.

It also pioneered several service initiatives that helped increase


transactional ease. It was the first mutual fund to initiate

• Across the counter redemptions for all classes of investors in


liquid funds,

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• Next day redemptions for non-liquid funds and lately
• One Call Free number 1600226622 accessible across 153
cities

• Phone transacts service wherein investors can redeem without


having any Personal Identification Numbers.
Standard Chartered Mutual Fund today has offices in 19 cities and
currently manages assets in excess of Rs 8000 crores.

HISTORY OF STANDARD CHARETERED BANK

The Standard Chartered Group was formed in 1969 through a merger


of two banks: The Standard Bank of British South Africa founded in
1863, and the Chartered Bank of India, Australia and China, founded
in1853.

Both companies were keen to capitalize on the huge expansion of


trade and to earn the handsome profits to be made from financing the

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movement of goods from Europe to the East and to Africa.

SCB IN INDIA AT A GLANCE

The Standard Chartered Bank opened its first overseas branch ever
in Kolkata on April 12, 1858. Calcutta as it was known then was the
most important Indian commercial city, and the centre of the jute and
indigo trade. With the growth of the cotton trade and the opening of
the Suez Canal in 1869, Bombay took over from Calcutta as India’s
main trade centre. Today, the group has a combined customer base
of 2.4 million users in retail banking and over 1,200 corporate
customers, branches and sub-branches in India, which are directed
and administered from Mumbai, with Calcutta remaining an important
trading and banking centre.

It is one of the world’s most international banks, employing over


40,000 people, representing 80 nationalities, across its network.
Standard Chartered operates in over 1,200 locations (including
subsidiaries, associates and joint ventures) in more than 50 countries
in the Asia Pacific Region, South Asia, the Middle East, Africa, the
United Kingdom and the Americas.

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SCB MUTUAL FUND AT A GLANCE

Australia and New Zealand (ANZ) Banking Group is Australia’s


leading international banking and financial services group. ANZ made
its foray in the mutual fund business in July 2000 with the launch of
the Grindlays Super Saver Income Fund. The merger of the ANZ
banking group with Standard Chartered Bank has made the
combined entity one of the largest international banks in the country.
Standard Chartered Bank has recently received all the approvals for
acquiring the shareholdings of ANZ in ANZ Asset Management
Company Pvt Ltd and ANZ Grindlays Trustee Company Pvt Ltd. The
AMC and the Trust have been renamed Standard Chartered Asset
Management Company and Standard Chartered Trustee Company
Pvt Ltd respectively.

Mr. Rajiv Anand is the Head of Investments at


Standard Chartered Mutual Fund. He brings with
him nearly a decade of experience in the Indian

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money and debt markets. He started off in the treasury of HSBC
before moving to the dealing room of ANZ Grindlays Bank, where he
was part of the bank’s Treasury team, managing balance sheet
portfolios like SLR, daily funding and CRR as well as the Foreign
currency loan/deposit book. The stint in the dealing room exposed
him to the cutting edge techniques of interest rate and liquidity risk
management. From the dealing room he has moved to the fund
management arm of the bank. In an interview with Toral Munshi and
Kinner Mehta of Indiainfoline Mr Anand speaks about the reasons for
sharp inflows into Income schemes, their investment style leading to
superior performance of Grindlays Super Saver Income Fund and
outlook for debt funds.

CEO OF STANDARD CHARTERED BANK

NEERAJ SWAROOP
CEO - INDIA
Standard Chartered

ADDRESS OF Mr.NEERAJ SWAROOP


Standard Chartered Bank
(Established: 1858)

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Principal Office Address:
90 Mahatma Gandhi Road
Mumbai, 400 001, India
Tel: +91 (002) 22670162

Number of branches/corporate offices: 89


Branch opening hours:
9.00am - 6.00pm Mon - Fri
10.00am - 3.00pm Sat
10.00am - 2.00pm (Sun and public holidays)
*Some branches in the country also cater to 24/7 banking

Establishment of standard chartered bank around the word

Country Year Established Country Year Established


United Kingdom 1853 Australia 1964
China, India, Sri
1858 Mexico, Oman 1968
Lanka
Hong Kong,
1859 Peru 1973
Singapore
Indonesia, Pakistan 1863 Jersey 1978
Philippines 1872 Brazil 1979
Malaysia 1875 Venezuela 1980
Falkland Islands,
Japan 1880 1983
Macau
Zimbabwe 1892 Taiwan 1985
The Gambia, Sierra
1894 Cameroon 1986
Leone, Thailand
Ghana 1896 Nepal 1987
Botswana 1897 Vietnam 1990
Cambodia, South
USA 1902 1992
Africa
Bangladesh 1905 Iran 1993
Zambia 1906 Colombia 1995
Kenya 1911 Laos, Argentina 1996
Uganda 1912 Nigeria 1999
Tanzania 1917 Lebanon 2000

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Bahrain 1920 Cote d’Ivoire 2001
Jordan 1925 Mauritius 2002
Korea 1929 Turkey 2003
Qatar 1950 Afghanistan 2004
Brunei, UAE 1958

MAJOR CUSTOMERS

 RESIDENT INDIVIDUALS

 COMPANYBODY CORPORATES

 PROPIRETOR

 NRI-NRE

 FII

 TRUST

 HUF

 ON BEHALF OF MINOR

 PARTENERSHIP FIRM

 SOCIETY

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 BANK

MAJOR COMPETETIORS

 HDFC

 ICICI

 KOTAK MAHINDRA

 FRANKLIN TEMPLETON

 HSBC

 ABN AMRO

 SBI MUTUAL FUND

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MAJOR AWARDS TO STANDARD CHARTERED BANK

 ASIA RISK AWARD 2005

 IFR ASIA AWARD 2005

 THE ASSET TRIPLE ASIAN AWARD 2005

 FINANCE ASIA ACHEIVEMENT AWARD 2005

 EURO MONEY AWARDS FOR EXCELLENCE 2005

 GLOBAL CUSTODIAN AGENT BANK SURVEY 2005

 GLOBAL FINANCE AWARD 2005

 TOTAL CARING COMPANY AWARD

 EXECELENCE IN RETAIL FINANCIAL SERVICES

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 ASIAN CSR AWARDS

SCMF OFFICES

 AHMEDABAD ABHIJIT - II, GR. FLR, MITHAKHALI, 6TH ROAD,


NAVRANG PURA, AHMEDABAD -380006 Tel :079-26460923

 BANGALORE RAHEJA TOWERS, 26, M.G. ROAD, 6TH FLR,


WEST WING, BANGALORE - 560001 Tel :080-
25323059/25327395/25327399/25593550

 CHANDIGARH SCO 137 - 138, SECTOR 9C, MADHYA MARG,


CHANDIGARH - 160017 Tel :

 CHENNAI GRINDLAYS CENTRE", 1ST FLOOR, 19, RAJAJI


SALAI, CHENNAI - 600001 Tel : 044-
25349371/25349372/25349373

 COIMBATORE RED ROSE PLAZA, 509, D.B. ROAD, R. S.


PURAM, COIMBATORE - 641002 Tel : 0422-2542645/2542678

 KOCHI HDFC BLDG, 1ST FLOOR, RAVIPURAM JUNCTION,


KOCHI- 682015 Tel : 0484 -2358639

 KOLKATA 41, CHOWRINGHEE, KOLKATA - 700 071 Tel : 033-


22882048/22883164

 LUCKNOW NARAIN AUTOMOBILES, 4 SHAHNAZAF ROAD,

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LUCKNOW - 226001 Tel : 0522 – 2200097

 LUDHIANA SCO 16-17, FEROZE GANDHI MARKET, LUDHIANA -


141001 Tel : 0161-5022155/502215

 MUMBAI 90 MG ROAD, FIRST FLOOR, FORT MUMBAI 400001


Tel

 PUNE 4TH FLOOR, SHRIRANG HOUSE, 364-365 J.M. ROAD,


SHIVAJI NAGAR, PUNE - 411005 Tel : 020-56020965

 VADODARA GROUND FLOOR, AKASH GANGA COMPLEX,


ADJACENT TO VANIJYA BHAVAN, RACE COURSE CIRCLE,
VADODARA - 39 00 07 Tel : 0265 -5520919

 KANPUR 16/105 MG ROAD, MALL ROAD, KANPUR Tel : 0512 –


2305955

 HYDERABAD 6/3/1090, TSR TOWERS, RAJ BHAVAN ROAD,


SOMAJIGUDA, HYDERABAD - 500 082 Tel : 040 - 55329924 /
25/27

 JAIPUR G - 7, G - 8, ANUKAMPA TOWERS CHURCH ROAD,


JAIPUR 302 001 Tel : 0141 -5105797/5105798

 NEW DELHI H BLOCK, GR. FLR, CONNAUGHT CIRCUS, NEW


DELHI -110001 Tel : 011-23406703/51513043

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FACILITIES PROVIDED BY SCB

 Overdraft Facilities

 Commercial Paper facilities

 Bankers Acceptance

 Import Trade Finance facility/Clean line Letters of Credit

 Export Finance

 Short/Medium term finance

 Personal Finance

 Credit Cards

 Priority Banking

 Investment Advisory Services

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TYPES OF BOND IN STANDARD CHARTERED BANK

Money Market Bonds

The bonds of which 100% funds are placed in money market instruments
like deposits, SBI (Bank Indonesia Certificates), and obligation with
maturity date less than 1 year.
 Fund protection and liquidity
 Suitable for short-term investment

Fixed Gain Bonds

The bonds of which 80% funds are placed in the obligation, normally with
maturity date of 3 years and over.
 Gain higher interests from the saved deposits
Suitable for mid-term investment, minimum 3 years

Mixed Bonds

The bonds being money market instruments, obligations and shares with
flexible composition according to your financial requirements.
 Increasing funds
 Suitable for mid and long term investment

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Share Bonds

Bonds of which minimum 80% of funds are placed in shares


 Increasing funds
 Suitable for long term investment, minimum 6 years

REASONS TO INVEST IN MUTUAL FUND-

5 reasons why you must invest in Equity Mutual Funds

# 1. Your money needs to generate much higher returns to secure your


retirement

Are you burning your retirement cash to light up your life today?

We don't want to spoil your party. But connect the dots of your ages, your 30s/
40s or 50s and they WILL connect to 60,70 and even 80. You will turn old one
day. And you will not want to depend on someone then, even your kids. The good
news is that you can start today and build sizeable savings by -50% the time you
retire.

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Assuming annual compounding at the same rate as the investment rate throughout the period of investment.

The chart shows how saving at a more than average rate of 20% can make your
savings increase substantially over the next 20 years. By how much? A 1 lakh
savings today can increase to close to Rs. 40 lakhs by the time you are ready to
hang up your boots.
The trick is not to be satisfied with the 5% or 10% returns and hunt for investments that can give you above
average returns. Your search ends here.

# 2. Equity markets can give the returns needed to secure your future.

The graph below shows that returns generated by the Sensex over the past 20
year period have been a healthy 15%. This while the Indian economy grew at 3-
4% for more than half that 150% period. Going forward, this growth is targeted to
be 6-8%, now you know why we are optimistic about the equity markets.

BSE Sensex Point to Point returns as on 25.05.05 Source: Bloomberg

If you have been wary of investing in equity mutual funds because of the
risk involved, we have some news for you…

# 3. Historical data proves that investing inthe Equity market becomes


less risky in the long term

As shown below, the peaks and troughs of returns can be mellowed by remaining
invested for the long term. The historical analysis shows how the maximum and
minimum returns generated by the Sensex behave from 1 year to 20 years.

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BSE Sensex Rolling returns (yearly basis) from March 1979 to March 2005
Source: Bloomberg

But you may be a complete beginner and may know nothing about how to
invest. Fortunately, there are collections of investors called Mutual funds
that have professional fund managers that invest in the stock market
collectively on behalf of investors.

And what's more,

# 4. Mutual funds offer a better route to investing in equities for lay


investors

A mutual fund acts like a professional fund manager,investing your money and
passing the returns to you. All it deducts is a management fee and its expenses,
which are declared in its offer document.

As seen in the following graph, looking at the past 10 years,mutual funds have
given higher returns over the BSE Sensex ,even when measured on a 5 year
rolling basis.

Sensex Equity MF Average*

Average 2.46% 20.63%

Min -7.90% 8.94%

Max 14.51% 33.53%

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*Average returns of private sector diversified equity fund ( 7 schemes) existing
more than ten years. Source Crisil Fund Tracker. Comparison of returns of BSE
Sensex and Private Sector Diversified Equity funds (7schemes existing for more
than 10 years) for the past 10 years. Source: Crisil Mutual Fund Tracker,
Bloomberg

The logic is simple, it makes sense to leave your investments in the hand of
professionals you can trust.

However, you may ask, why invest now. Because…

# 5. The Indian economy is booming right now.

The Indian economy is growing strongly as shown by the growth rate of Gross
Domestic Product (Broadly the Total Production of goods and services in the
country). A booming markets.

BSE Sensex from 1985 to 2005 till date.


Source: Bloomberg

Investing now in the stock market can enable you to benefit from a growing
Indian economy.

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INVESTMENT IN MUTUAL FUNDS-

5 Easy Steps to investing in mutual funds

Search: Where to look for if you want to begin saving in mutual funds
Mutual funds are much like any other product, in that there are manufacturers
who provide the product and there are dealers who sell them.

Large banks to organized brokerage houses to Individual Financial agents get


empanelled with Mutual Funds to provide advise and assistance to customers
who want to buy units. Mutual funds units can now also be bought over the
Internet

Contacting an Investment advisor in a bank or a brokerage house or an


Independent Financial Advisor is the first step to gathering information.

Evaluation:choosing the right mutual fund for you

Each Mutual fund offers a variety of schemes to suit differing needs of investors.
The Bank/ Brokerage house/ Individual Financial Advisor helps you make the
choice based on your needs.

As an investor one may

a) for the short term or long term want to invest

b) want regular income or growth

c) want to target lower risk or higher returns

d) be convinced of a particular sector and want to invest in it

Remember, just like a salesman in a gift shop, your investment advisor can help
you the most if he knows what you are looking for.

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Purchase

After you have decided to save, you may have to decide among the various
investment and withdrawal options that any fund offers to its investors.

Most of these schemes also offer various options to customize your operation of
the fund to your needs:

Systematic Investment Plan (SIP):Allows you to save a part of your income


regularly. Also used to reduce risk when investing in schemes targeting
aggressive growth.

Systematic Withdrawal Plan (SWP): Allows you to withdraw a part of your


investment regularly. Used when you want to withdraw your investment for a
specific regular payment, like insurance premium payments of monthly/quarterly
frequency.

Automatic debit:Saves the hassle of writing a cheque when making an


investment. Your account is debited automatically for the amount invested.

Automatic credit: The reverse of Automatic Debit. Saves the hassle of


enchasing a cheque when withdrawing an investment. Your account is credited
automatically with the amount withdrawn.

Dividend plan: Allows you to get Tax-free dividends from your investment. (As
per current Tax laws).

Growth plan: Allows the income generated from investment to be ploughed back
into the scheme. Used by investor targeting growth in their investment.

Some funds carry an entry load, which is a percentage fee deducted from the
amount invested before investment. Thus a 2.5% entry load will mean that if you
invest Rs 1 lakh in a Rs. 10 per unit IPO, instead of getting 10,000 units, you will
be allotted 9,750 units. Check for presence of such loads and other conditions
before investing.

After deciding the choice of mutual fund, investment and withdrawal, you are
ready to begin your savings. You need to now fill up an application form and
attach a cheque of the value of your investment or mention your account number
to have it automatically debited from your account.

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Post Purchase Monitoring

Once you have invested in an ongoing fund, expect a period of two to three days
before you receive an account statement on the address mentioned by you in
your application form.

The Account Statement


Your account statement indicates your current holding in the scheme that you
have invested. Please ensure that all your details have been correctly captured in
account statement. Please point out any discrepancies to your nearest CAMS
investor Service Centre or the Mutual Fund office. You can request an account
statement any time by calling up your nearest CAMS/ Mutual fund offices usually
mentioned on the back of the account statement.

The transaction slip at the end of the account statement can be used for
additional purchases, redemptions or to intimate the mutual fund on any change
in bank mandates/address.

The NAVs of all the open-ended schemes are published at the fund's website,
financial newspapers and AMFI (Association of Mutual Funds) web-site
www.amfiindia.com.

Exit

While you should periodically monitor the performance of your investments, we


recommend you do not get swayed by short term considerations in deciding your
exit. If you have invested in a long term fund, you can spare yourself undue
worries by not monitoring the NAV every day or week. Checking the performance
once in a while along with your advisor should be fine.

Most mutual funds will provide you with a toll free number that works from 9 am
to 5 am and a website. For specific assistance you can also use your financial

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advisors help.

Redemption/ Withdrawal
Just submit your completed transaction within the transacted time for the scheme
that you are invested in and deposit the same at the nearest CAMS Investor
Service Centre or the office of the fund. You can either get a direct credit to your
bank account or you can generally collect the cheque at the CAMS Investor
Service Centre/ AMC offices. If you fail to do so then the cheque is couriered to
the address mentioned in your account statement. Most funds take 1-3 days to
credit your account with your redemption proceeds.

In case an exit load is applicable to your withdrawal and you have redeemed a
fixed amount, an additional number of units equivalent to the exit load amount
will be liquidated from your investment. You can check this amount with the
mentioned exit load when you get the account statement using a simple
calculator.
SOURCE- INTERNET (standardcharteredmf.com)

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PROJECT

PROJECT-

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Questionnaire- VIKAS SHARMA- (FINANCIAL ADVISOR)

“Market penetration of mutual funds”


 Name………………………………………………… Sex: Male Female
 Occupation-
Employed Self Employed Business
Professional House Wife Others………………………
 Age Group-
Young Adult (18 – 35) Adult (35 – 50) Senior Citizen (Above 50)
 Are you aware of share market?
Yes No
 If yes how?
Investor TV Friend News Paper
Others……………………
 If no why?
No Interest Unaware Share market Financial Problem
Education Not Secure Market Others…………………
 How much year knowledge do you have?
<1year 1 – 3 years 3 – 5 years More than 5 years
 Which type investment do you have in the share market?
Equity trading Commodities Future / Options
Mutual Fund Others…………………
 Which company did you select?
STANDARD C.AMC ABN AMRO HDFC ICICI KOTAK
FRANKLIN HSBC SBI RELIANCE
 Why did you select this company?
Only heard this company Better services Work in a particular field Growth rate
Convenience Less Brokerage Different services Other Reason…
 How did you select this company?
Through Representative Advertisement Reference
Own Research Randomly Others…………………
 Are you satisfied with this company?
Excellent Very Good Good Fair Poor
 If no why?
……………………………………………………………………………………………………………
…….
 If you are given a chance to change another company, it may be -
Company Name……………………………… No
 Why will you select this company?
……………………………………………………………………………………………………………

34
………………..
 What is yours company brokerage?
Intra Day………………. Delivery Period…………………
 What is your normal investment in mutual funds? (in Rs)
1000-5000 5000-10000 10000-2500 25000-50000
50000-100000 100000-200000 200000-500000 Above
500000
 Do you want any extra service from your company?
……………………………………………………………………………………………………………
………………..
Date: Phone:

FOR SALES PERSONS-

35
NAME-

BANK NAME-

DESIGNATION-

DATE OF JOINING-

INVESTMENT DETAIL-

 Which scheme collected maximum revenue?

 What was your part in that scheme?

 What was the return of that scheme?

 Which type of customer had invested more in that scheme?

1-Upper level

2-Middle level

3-Lower level

 Maximum number of investor who had invested similar applications


amount?

 Any suggestation to standard chartered bank?

FOR BANK OFFICERS-

 Bank name

 Location

 Number of schemes

 Investment amount

 Recent schemes

 Collected amount

 Contribution of any other bank

36
INTRODUCTION-

Objectives and limitations

The purpose and nature of this project is to find out the following
things-

 Number of people in Delhi who know about share market and mutual
funds?

 How they know share market and mutual funds?

 Age discrimination- which age people are more aware to equity markets?

 What is their profession who know about equity markets?

 From how many periods they are aware of equity market?

 Which type of investment investors prefer?

 What is the maximum number who believes in a single company?

 What is the name of that company?

 Why they believe on that company?

 How they select that company. Means are they satisfied with that
company?

 What is the normal investment of investor?

 What further services investor wants?

 What is the profession of that normal investor?

37
RESULT AND FINDINGS

 Are you aware of the share market?

140
140
120
100
80
60 AWARE
60
40
20
0
YES NO

30%

YES
NO
70%

38
 How you know the share market?

90 90
80
70
60
50
Number
40
30 30 Others
20
10 10
5 5
0
Investor T.V Friend N.paper Others

4%
21% Investor
T.V
Friend
7% N.paper
4% 64%
Others

39
 If you don’t know the share market,why?

20
20
17
15

10
10 9
Number
5 4

0
No interest Unaware F.problem Education Not secure
market market

28% 33% No interest


Unaware market
F.problem
Education
7%
Not secure market
17% 15%

40
 How much year knowledge do you have of share market?

70 68
60
50
40
32
30 Time
25
20 15
10
0
>1year 1-3year 3-5year <5year

23% 11%

18% >1year
1-3year
3-5year
<5year
48%

41
 Which type of investment do you have in the share market?

80
80
70
60
60
50
40
Number
30
20
10
0 0
0
Mutual fund Equity Commodity Future/option

0%

43% Mutual fund


Equity
Commodity
57% Future/option

 Which company did you select for investment?

42
40
40 38
35 Stan.c
35
ABN AMRO
30 HDFC
25 ICICI
20 Kotak
15 Franklin
9 HSBC
10
5 SBI
5 3 4 3
2 1 Reliance
0 Others
Numbers

Stan.C
ABN AMRO
4%
29% HDFC
27%
ICICI
Kotak
Franklin
2% HSBC
1%
3%
1% 6% 25% SBI
2%
Reliance
Others

 Why did you select this company?

43
12 12
12

10
8 Only heard
8
Better services
6 5 Specific field
Growth Rate
4 3
Convenience
2 Less brokerage
0
Numbers

8% 0%
20% Only heard
30% Better services
Specific field
Growth Rate
Convenience
29%
13% Less brokerage

 How did you select this company?

44
35
35
30
25
20
15 Numbers
10
5 2 2
1
0
Representative Advertisment Reference Own research

5%
5% 3%

Representative
Advertisment
Reference
Own research

87%

 Are you satisfied with this company?

45
30 28
25

20

15
Number
10 9

5
2 1 0
0
Excellent Very good Good Fair Poor

3%0% 5%
23%
Excellent
Very good
Good
Fair
Poor
69%

 If investor has given a chance to change another company, it


may be?

46
120 110
100
80

60
44 NUMBERS
40 30
20 16

0
STAN.C RELIANCE FRANKLIN DSPML

8%
22%

STAN.C
RELIANCE
FRANKLIN
15% DSPML
55%

 Which type of investment does investor prefer in mutual fund?

47
120 110

100

80

60
NUMBER
40 30

20

0
SIP LUMP SUM

21%

SIP
LUM P SUM

79%

48
 What is the normal investment in mutual funds?

60 58

50

40 40

30
NUMBERS
20 18 17
10
5
1 1 0
0
1k-5k 5k-10k 10k-25k 25k-50k 50k-1L 1L-2L 2L-5L 5L<

4% 1%
10%% 1k-5k
12% 13%
5k-10k
10k-25k
25k-50k
50k-1L
29%
1L-2L
40% 2L-5L
5L<

49
 Which age is aggressive in investment?

78
80
70
60
50
40
40
Numbers
30 22
20
10
0
18-35 year 35-50year 50 &above

29%
18-35 year
35-50year
55% 50 &above
16%

 What is the occupation of aggressive investor?

50
100 93

80

60

40 Numbers
20 19
8 12 8
0
Employed Self Business Profession House
employed wife

9% 6%
Employed
14%
Self employed
Business
Profession
6% 65% House wife

 What is the category of aggressive investors?

51
132
140
120
100
80
60 Numbers
40
20 8
0
Male Female

6%

Male
Female

94%

CONCLUSION / SUGGESTION / RECOMMENDATIONS-

 As according to survey 30% people is yet to be aware of share


market. So it is a gap by filling which mutual fund selling can be

52
increased.

 As 30% people are not aware of share market so we can arise


interest by personal visits, telephone calls, by advertisement
and by all the media of communications.

 The time period about share market awareness shows that in a


short span people are aware with share market. We should try
to make a stable and long term relation with investors for long
term selling’s of mutual funds.

 Only 43% investors are investing in mutual fund so by filling


this gap we can achieve rest 57% gap. This is just more than
one time of existing investors.

 In NFO’s standard chartered has collected more than targets,


so it shows that investors are interested in to invest in NFO’s.
By offering new IPO’s standard chartered can increase their
market share.

 Investors wants time to time feedback of their investment, so


by providing better services as (WMS) is providing by ABN
AMRO bank, Standard Chartered Bank can increase their
market share.

 The representative plays a better role in promotion of mutual


funds so by selecting good & knowledgeable investment
advisors any AMC’s can improve their market scenario.

 Middle standard investors are more interested in to invest in


mutual funds, so there is a potential to attract the high standard
family for investment.

 Between 18 to 35 ages are more interested in investment


because the want high return and they can take high risk so we
can attract them to invest more in mutual funds.

STANDARD CHARTERED MUTUAL FUNDS AT A GLANCE-

First-

Stan Chart Classic Equity Fund (D) Snapshot

53
Summary Info
Fund Name : Standard Chartered
Mutual Fund
AMC : Standard Chartered
Asset Management
Company Ltd
Type : Open
Category : Equity - Diversified
Launch Date : 27-Jun-05
Fund Manager : Bobby Surendera
Nath
Net Assets:(Rs. 667.8
cr)
NAV Details
NAV Date 16-Jun-06
NAV : 11.41
Buy/Resale 11.67
Price :
Sell/Repurchase 11.41
Price :
Latest Payouts Tax benefits : N.A
Dividends Bonus Min. Investment(Rs.) : 5000
Ratio N.A N.A. Increm.Investment(Rs.) 1
Date N.A N.A. :

Performance(%) 16-Jun-06
1 Mth 3 Mth 6 Mth 1 Yr 3 Yr 5 Yr
Scheme Return -21.09 -16.35 -3.22 0.00 0.00 0.00
Category Avg -21.61 -16.13 -0.33 33.11 51.03 34.19
Category Best -8.68 -4.22 28.21 79.89 84.10 56.70
Category Worst -30.49 -30.20 -21.66 -4.19 12.91 7.56

54
Asset Allocation Top 10 Holdings Date : 31-May-06
6.25% 92.05% 1.70%
Company % Hold
Name
Other Equities 6.05
Reliance Inds. 5.50
Infosys Tech. 5.03
ONGC 4.81
Cash & Net Curr M&M 3.98
Cash Equity Ass/Net BHEL 3.45
Equivalents Receivables Larsen & Toubro 3.43
ITC 3.20
Subex Systems 3.14
Siemens 3.03

Second-

Stan Chart Enterprise Equity Fund (D) Snapshot

Summary Info

Fund Name : Standard Chartered


Mutual Fund
AMC : Standard Chartered Asset
Management Company

55
Ltd
Type : Close Ended
Category : Equity - Diversified
Launch Date : 19-Apr-06
Fund Manager : Kenneth Andrade
Net Assets:(Rs. 0
cr)
NAV Details
NAV Date 17-Jul-06
NAV : 10.22
Buy/Resale 10.22
Price :
Sell/Repurchase 10.22
Price :
Latest Payouts Investment Details
Dividends Bonus Tax benefits : N.A
Ratio N.A N.A. Min. Investment(Rs.) : 5000
Date N.A N.A. Increm.Investment(Rs.) 1
:

Performance(%) 15-Jun-06
1 Mth 3 Mth 6 Mth 1 Yr 3 Yr 5 Yr
Scheme Return 0.00 0.00 0.00 0.00 0.00 0.00
Category Avg -21.61 -16.13 -0.33 33.11 51.03 34.19
Category Best -8.68 -4.22 28.21 79.89 84.10 56.70
Category Worst -30.49 -30.20 -21.66 -4.19 12.91 7.56
Stan Chart Imperial Equity Fund (D) Snapshot

Summary Info
Fund Name : Standard Chartered
Mutual Fund
AMC : Standard Chartered Asset
Management Company
Ltd
Type : Open
Category : Equity - Diversified
Launch Date : 30-Jan-06
Fund Manager : Kenneth Andrade
Net Assets:(Rs. 380.93
cr)
NAV Details

56
NAV Date 16-Jun-06
NAV : 9.01
Buy/Resale 9.21
Price :
Sell/Repurchase 9.01
Price :
Latest Payouts Investment Details
Dividends Bonus Tax benefits : N.A
Ratio N.A N.A. Min. Investment(Rs.) : 5000
Date N.A N.A. Increm.Investment(Rs.) 1
:

Performance(%) 16-Jun-06
1 Mth 3 Mth 6 Mth 1 Yr 3 Yr 5 Yr
Scheme Return -19.05 -9.90 0.00 0.00 0.00 0.00
Category Avg -21.61 -16.13 -0.33 33.11 51.03 34.19
Category Best -8.68 -4.22 28.21 79.89 84.10 56.70
Category Worst -30.49 -30.20 -21.66 -4.19 12.91 7.56

Asset Allocation Top 10 Holdings Date : 31-May-06


14.44% 81.18% 4.38%
Company % Hold
Name
Other Equities 7.47
Hind. Lever 5.29
Infosys Tech. 5.09
Reliance Inds. 4.86
Cash & Net Curr BHEL 3.64
Cash Equity Ass/Net TCS 3.37
Equivalents Receivables Pun. Natl. Bank 3.36
Ashok Leyland 3.05
St Bk of India 2.89
Larsen & Toubro 2.85

57
Fourth-

Stan Chart Premier Equity Fund (D) Snapshot

Summary Info
Fund Name : Standard Chartered
Mutual Fund
AMC : Standard Chartered
Asset Management
Company Ltd
Type : Open
Category : Equity - Diversified
Launch Date : 5-Sep-05
Fund Manager : Ajay Bodke
Net Assets:(Rs. 255.93
cr)
NAV Details
NAV Date 16-Jun-06
NAV : 9.30
Buy/Resale 9.51
Price :

58
Sell/Repurchase 9.30
Price :
Latest Payouts Investment Details
Dividends Bonus Tax benefits : N.A
Ratio N.A N.A. Min. Investment(Rs.) : 25000
Date N.A N.A. Increm.Investment(Rs.) 1
:

Performance(%) 16-Jun-06
1 Mth 3 Mth 6 Mth 1 Yr 3 Yr 5 Yr
Scheme Return -30.49 -21.98 -5.68 0.00 0.00 0.00
Category Avg -21.61 -16.13 -0.33 33.11 51.03 34.19
Category Best -8.68 -4.22 28.21 79.89 84.10 56.70
Category Worst -30.49 -30.20 -21.66 -4.19 12.91 7.56

Asset Allocation Top 10 Holdings Date : 31-May-06


86.39% 0.63%
Company % Hold
Name
Bombay Ryn Fash 7.91
12.98% EMCO 6.79
Areva T&D 5.67
Deccan Chronicle 5.48
Cash & Net Curr Other Equities 5.05
Cash Equity Ass/Net RPG 4.45
Equivalents Receivables Transmission
Mah. Seamless 4.26
Mahindra Gesco 4.12
Shree Renuka 3.91
Sug
TV 18 India 3.39

59
ABN AMRO EQUITY FUND-

ABN AMRO Equity Fund (D) Snapshot

NAV Date 19-Jun-06


NAV : 14.70
Buy/Resale 15.03
Price :
Sell/Repurchase 14.70
Price :
Latest Payouts Investment Details
Dividends Bonus Tax benefits : N.A
Ratio 17.5 % N.A. Min. Investment(Rs.) : 5000
Date 18-Apr-05 N.A. Increm.Investment(Rs.) 1
:

Performance(%) 19-Jun-06
1 Mth 3 Mth 6 Mth 1 Yr 3 Yr 5 Yr

60
Scheme Return -14.04 -27.76 -13.98 23.32 0.00 0.00
Category Avg -13.81 -14.67 0.25 36.45 50.50 34.60
Category Best -1.76 -2.17 28.45 83.69 83.57 57.50
Category Worst -23.79 -29.37 -20.32 0.18 13.65 7.98

Asset Allocation Top 10 Holdings Date : 31-May-06


99.93% 2.31% -
2.23% Company % Hold
Name
Reliance Inds. 6.43
Infosys Tech. 4.85
Grasim Inds. 3.63
Bank of India 3.53
Jaiprakash Assoc 3.24
Money Net Curr Crompton 3.22
Equity Market Ass/Net Greaves
Instruments Receivables M&M 3.15
Bajaj Auto 3.05
TCS 3.05
Voltas 3.05

61
PRUDENTIAL ICICI MUTUAL FUND-

Pru ICICI Emerging S.T.A.R. Fund (D) Snapshot

Summary Info
Fund Name : Prudential ICICI Mutual
Fund
AMC : Prudential ICICI Asset
Management Co
Type : Open
Category : Equity - Diversified
Launch Date : 6-Sep-04
Fund Anil Sarin
Manager :
Net Assets: 955.11
(Rs. cr)
NAV Details
NAV Date 19-Jun-06
NAV : 16.00
Buy/Resale 16.36
Price :
Sell/Repurchase 16.00
Price :
Latest Payouts Investment Details
Dividends Bonus Tax benefits : N.A
Ratio 30 % N.A. Min. Investment(Rs.) : 100000
Date 15-May-06 N.A. Increm.Investment(Rs.) 1
:

Performance(%) 19-Jun-06
1 Mth 3 Mth 6 Mth 1 Yr 3 Yr 5 Yr

62
Scheme Return -20.32 -17.75 -0.48 46.11 0.00 0.00
Category Avg -13.81 -14.67 0.25 36.45 50.50 34.60
Category Best -1.76 -2.17 28.45 83.69 83.57 57.50
Category Worst -23.79 -29.37 -20.32 0.18 13.65 7.98

Asset Allocation Top 10 Date : 31-


20.12% 77.42% - 10.02% 3.17% Holdings May-06
10.73%
Company % Hold
Name
Deccan 3.50
Chronicle
Mahindra 3.01
Gesco
Net Curr
Cash & Nifty Term Subex 2.69
Equity Ass/Net
Call Futures Deposits Systems
Receivables
Lloyd 2.57
Electric
Aban Loyd 2.46
Chiles
Ramco 2.30
Inds.
Graphite 2.12
India
Mukand 2.07
India 1.98
Cements
Sterlite 1.87
Optical

HDFC MUTUAL FUNDS-

63
HDFC Core & Satellite Fund (D) Snapshot

Summary Info
Fund Name : HDFC Mutual Fund
AMC : HDFC Asset
Management Company
Ltd
Type : Open
Category : Equity - Diversified
Launch Date : 20-Aug-04
Fund Manager : Dhawal Mehta
Net Assets:(Rs. 737.59
cr)
NAV Details
NAV Date 19-Jun-06
NAV : 17.71
Buy/Resale N.A
Price :
Sell/Repurchase N.A
Price :
Latest Payouts Investment Details
Dividends Bonus Tax benefits : N.A
Ratio 22.5 % N.A. Min. Investment(Rs.) : 5000
Date 13-Jan-06 N.A. Increm.Investment(Rs.) 100
:

Performance(%) 19-Jun-06
1 Mth 3 Mth 6 Mth 1 Yr 3 Yr 5 Yr
Scheme Return -12.54 -11.90 6.69 50.77 0.00 0.00
Category Avg -13.81 -14.67 0.25 36.45 50.50 34.60
Category Best -1.76 -2.17 28.45 83.69 83.57 57.50
Category Worst -23.79 -29.37 -20.32 0.18 13.65 7.98

Asset Allocation Top 10 Holdings Date : 31-May-06

Company % Hold
Name
Infosys Tech. 7.10

64
98.05% 5.40% - Satyam Computer 6.80
3.45% Crompton 6.32
Greaves
ITC 6.00
Tata Motors 5.88
Hind.Zinc 5.87
Hindalco Inds. 5.83
BHEL 5.81
Money Net Curr
St Bk of India 5.19
Equity Market Ass/Net
Reliance Inds. 5.17
Instruments Receivables

SECURITIES AND EXCHANGE BOARD OF INDIA

Trends in Transactions on Stock Exchanges by Mutual Funds (since January


2000)

Equity (Rs in Crores) Debt (Rs in Crores)

65
Net
Gross Purchase/ Gross Gross Net Purchase/
Purchase Gross Sales Sales Purchase Sales Sales
Jan 2000-March
2000. 11070.54 11492.19 -421.65 2764.72 1864.29 900.43
April 2000 -March
2001. 17375.78 20142.76 -2766.98 13512.17 8488.68 5023.49
April 2001-March
2002. 12098.11 15893.99 -3795.88 33583.64 22624.42 10959.22
April 2002-March
2003 14520.89 16587.59 -2066.7 46663.83 34059.41 12604.42
April 2003-March
2004 36663.58 35355.67 1307.91 63169.93 40469.18 22700.75
April 2004-March
2005 45045.25 44597.23 448.02 62186.46 45199.17 16987.29
April 2005-March
2006 100389.3 86083.64 14305.66 109622.5 73003.67 36618.84
April 2006. 12752.47 9631.91 3120.56 11227.96 6800.08 4427.88
May 2006. 18345.43 10452.07 7893.36 15386.47 7774.06 7612.41
June 2006 (upto
19th) 4336.33 6515.26 -2178.93 9203.9 5375.13 3828.77
Total (April - June
'06) 35434.23 26599.24 8834.99 35818.33 19949.27 15869.06

Trends in Transactions on Stock Exchanges by Mutual Funds


(Provisional and subject to revision) June 2006

66
Equity (Rs in crores) Debt (Rs in crores)
Net Net
Gross Gross Purchases Gross Gross Purchases/
Transaction Date Purchases Sales / Sales Purchases Sales Sales
01.06.06 496.74 371.15 125.59 621.34 734.37 -113.03
02.06.06 363.81 473.24 -109.43 264.41 233.91 30.5
05.06.06 219.86 637.28 -417.42 120.11 288.19 -168.08
06.06.06 323.36 581.07 -257.71 367.79 283.21 84.58
07.06.06 296.5 514.07 -217.57 652.08 517.65 134.43
08.06.06 475.92 707.4 -231.48 668.4 335.37 333.03
09.06.06 362.06 664.85 -302.79 1184.44 474.34 710.1
12.06.06 256.38 268.78 -12.4 961.77 244.02 717.75
13.06.06 143.54 435.91 -292.37 983.33 419.57 563.76
14.06.06 126.99 465.2 -338.21 887.31 578.83 308.48
15.06.06 461.75 454.6 7.15 933 596.66 336.34
16.06.06 517.62 597.25 -79.63 430.85 357.43 73.42
19.06.06 291.8 344.46 -52.66 1129.07 311.58 817.49
Total 4336.33 6515.26 -2178.93 9203.9 5375.13 3828.77

NUMBER CRUNCHING

Source- Business Standard, 14th June

67
 Just 10% professionals and businessmen invested in shares

 87%consider life insurance policies as the most preferred


investment avenue.

 39% invest in bank deposits.

 22% in NSC/NSS/PPF

 11%in MFs,

 10% in equities

 9% in pension plans

 4% in company deposits, bonds, UTI, chit funds

 1% in debentures.

IPO ACTIVITY REBOUNDS IN 2004

68
⇒ Increasing rate of coming IPO, s shows the development of Indian
economy as well as of equity markets.

IT’S A BULL GUIDE CHART WHICH SHOWS THE BULLISH AND


BEARISH TRENDS OF EQUITY MARKETS-

⇒ A GREEN dot on the chart means the market is in a BULLISH trend. A


RED dot on the chart means the market is in a BEARISH trend. The
chart is based on the percentage of charts on our site that are in an
up trend as well as how fast that % is changing.

69
CONCLUSION / REASONS–

⇒ 100% foreign direct investments is allowed in the construction sector

Under automatic route.

⇒ Minimum equity investment cap of $ 10 Million for 100% FDI projects


and $ 5 Million in joint ventures.

⇒ Foreign investors only barred from trading in undeveloped land.

70
⇒ The government policy would lead to more capital inflows to real
estate.

⇒ Some of the foreign players active in India-


 Lee Kim Tah, Chennai
 Keppel Land, Bangalore

⇒ Increasing numbers of shopping malls.

⇒ Potential entry of Real Estate Mutual funds and Real Estate


investment Trusts.

⇒ A large young population will graduate into the working class over
the next decade.

⇒ They will enjoy enhanced employment opportunities in a booming


services sector.

⇒ Strong demand driver for consumption goods including housing,


consumer goods, vehicles etc.

⇒ Multiplier effects of infrastructure spending on the economy due to


additional demand for materials such as:

 Cement
 Steel
 Capital goods/other equipment

⇒ Traditional outsourcing segments like IT and Pharmaceuticals


continue to experience robust growth.

⇒ Natural resource companies beginning to export.

Source- PRUDENTIAL ICICI (PORTFOLIO MANAGEMENT SERVICES)

APPENDICES-

71
 Daily bull guide chart

 About mutual funds

 IPO numbers

 Reasons to invest in mutual funds

 Trends of transactions of mutual funds in stock market.

BIBLIOGRAPHY-

72
 By self prepared questionnaire.

 www.standardcharteredmf.com

 www.utibank.com

 Fund fact sheet of standard chartered bank, ABN AMRO


bank, HDFC bank.

 News paper- Business Standard


Economic Times

GLOSSARY

OJT- On the job training

NAV- Net Asset Value

73
STAN.C- Standard Chartered Bank

AMC- Asset Management Company

ABN- Adlede Bank of Netherlands

MF- Mutual fund

IPO- Initial public offer

74
ON THE JOB
TRAINING

75
ON THE JOB TRAINING

1 OBJECTIVE

2 TARGET/TASK

3 STRATEGY

4 ACHIEVEMENTS

5 MID- COURSE CORRECTION

6 LIMITATION

7 CONCLUSION

76
ON THE JOB TRAINING-

I have gotten on the job training as to sell mutual funds in Delhi State.
In this OJT i have to walk around 100 to 200 km daily for attending
the appointments. In this OJT I have to work with ABN AMRO Bank
as a representative of Standard Chartered Bank and to sell the
mutual fund of both the banks.

Objective-

 The objective of the OJT is to work with team. Means to


develop the teamwork.

 To be familiar with the organizational culture.

 As we are getting targets and we have to achieve the


targets on monthly as well as daily basis so it proves us to
be a result oriented trainee.

 If we failed to achieve the targets our company guide will


pressurize us. By this we are learning organizational
pressure.

 As I am interacting with the customers on daily basis so I


am learning and developing my selling and marketing
skills.

 As I am working with a multi national bank so now I am


familiarizing with corporate etiquettes, dressing, behaviour

77
etc.

 As I am in a metro city so I am familiarizing with the


environment of New Delhi.

Target –

I have to sell the mutual fund of Standard Chartered Bank as well as


of ABN AMRO Bank . I get the leads from tell callers on daily basis
and have to visit there for giving them complete information about
mutual fund and try to convert them as a final investor.
So there is no any specific target regarding OJT. But I have made my
target on myself as to sell the mutual fund of six lakh rupee in four
month. I will sell one lakh and fifty thousand rupee mutual fund on
monthly basis.

As I am trying to convert maximum leads in final investor so it is also


as a target to me to convert maximum leads.

Strategy-

 I have decided to complete my OJT from my following


strategy-

 I will personally call to the prospective customer and will


try to get the appointment from them of same day or any
day.

 If I will get the appointment then I will visit to the investor.

 If customer is not interested on phone call then I will try to


get future appointment from him.

 Provide him all the information regarding mutual funds .

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 I always tries to find the investors interest then provide him
investment option according to his interest.

 Either investor will invest immediately or I follows up to


him time to time.

Achievement-

 I have made my target on myself as to sell the mutual fund


of six lakh rupee in four month. I will sell one lakh and fifty-
thousand rupee mutual fund on monthly basis.

 I have already achieved my four months target within one


month of my SIP. Right now i am on five lakh fourty five
thousand rupee. It is highest not only in my team but also
in other college training students.

 I have converted the maximum number of application in


my whole team. Within one month I have converted more
than thirty applications. Many of the investors are in follow
up.

 Four times i have heard the congratulation word by my


company guide as well as by my officer.

 One time my officer left me at my home by her car.

 I have gotten a nice party by my officer in a three star hotel


for this job. Another party will be very soon announcing.

 I have gotten appreciation letter by my manager and her


best regards for my future.

 My team leader has written some lovely letters on my daily


log book.

 Head of ABN AMRO Bank has already promised me to


provide me job whenever I will be able to join the corporate

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field.

Mid-course correction-

There is no any mid course correction for the target but i myself
has decided the new target for me to sell the mutual fund of six
lakh rupee in my four month of SIP.

Limitations-

This on the job training is limited to sell the mutual fund only. we are
focusing only to sell the mutual fund in spite we are getting other
customers like credit card, insurance etc. we transfers it to the other
employees.

Problems I face-

1-Unfamiliar location-when i came in Delhi it was totally new for


me ,for going to attend client i several time walked on foot ten to
fifteen kilometers but after passing of one month i can say that i born
in Delhi. Now i knew number of areas of Delhi. I can go any where in
Delhi.

2-Transporation problem- At starting i did not know the bus


numbers so numbers of times i stand on bus stop and waiting for bus
even bus was standing there. Now i know the bus number and easily i
can give information to others about buses.

3- Lunch - Number of times i am on meeting with client or in the way


to reach the client at appointed time. Due to this i was unable to get

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lunch and i passed day without lunch.

What I did to improve my performance-?

 Tried to make familiar relations with the client.

 Never told lie about the product to them.

 Gives them time-to-time feedback about their investment


so they can invest more.

 If some one is not interested in invested then also give


them smile and thank you.

 Some investors haven’t gotten their statement, providing


them their investment personally by getting it from bank
itself.

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Conclusion-

How I improved or can improve my performance-

 Now I am familiar with location.

 If I will get monetary benefit.

 If company will provide lunch.

 If I will get bike then I can show just double of this OJT

Now I can say that after getting four months training from ICFAI

National College, I can easily do job in metro cities. I am with full

Confidence with the corporate fields.

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