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-: EXECUTIVE SUMMARY :A mutual fund is a trust that pools the saving of a number of investors who shares a common financial

goal. The money thus collected is than invested in capital market instrument such as share debenture and other securities. The income earned through this capital investment and the capital appreciation is realized is shared by its unit holders in proportion to the number unit owned by them. The investors should compare the risk and expected yield after adjustment of tax on various instruments while taking investment decisions. The investor may seek advice From experts and consultants including agents and distributors mutual funds scheme While investment decision The investor in proportion to their investment shares the profit and losses. The mutual fund normally comes out with a number of schemes with different investment objective, which are launched from time to time. A mutual fund is required to be registered with securities and exchange board of India (SEBI), which regulates securities market before it collect fund from public. In my report I want to know the public awareness and interest on mutual fund. What public want and how they decide to invest in mutual fund or not .for this I Survey the ample of 50 people by asking them some questions on mutual fund in my questioner. And I found that people are aware about mutual fund in my questioner and I found that people are aware about mutual fund are more than the people who not interested in it so they dont want to at least get some Knowledge about the mutual fund.



Names of manager





(0278) 2565966 3001041



www.jhaverisec.com www.ejhaveri.com


Strengths:E-Trading (internet based trading) Wealth creation seminars Digital contract note Value added service Daily investment calls SMS/E-mail updates Online market suggestion Derivative strategy Weekly recommendation Research report Market news in chat Widespread network Quality human resources State-of-the-art infrastructure


-: INFORMATION ABOUT THE COMPANY :Knowledge is power and power brings security. Risk is very relative term and changes with every individual and situation. Financial management is not just about managing risk but also managing knowledge and finally deriving answers that generate wealth, security and just. This core guiding philosophy has catapulted Jhaveri securities into one of the largest stock broking housing in Gujarat. Started in 1992, now with a client base of over 50000 the company has played a pivotal role in the development of primary and secondary market in Gujarat. Membership in all the major stock exchanges, offices at key locations, panel of experts to guide all decisions and transparent business interaction are the key elements that help in everyday activities. This has been made possible by the managements policy of investing heavily to constantly upgrade the services. Technology and human resources work hand in hand. The latest in computer software and the best in human mind come together to assist clients to derive maximum benefits of their investments. Be it long term return or short term gain, Jhaveri has systems in place that keep in touch with the pulse of the market. Small movements are tracked, financial performance is charted, data of Jhaveri. Gut feelings are doubly checked on the most modern systems and softwares leaving no room for errors. What the client finally gets is gist of the numerous man hours that have gone in working out best possible option based on his individual need and requirements. Jhaveri securities keep your investment and confidence safe and growing. Our portfolios of service are designed to cater to all your financial needs. Together we can take a bull run without bear in unnecessary costs.


Always share a long term relationship with our client, which are based on mutual trust and immense faith. We have a diverse clientele and we always ensure that we are versatile to match their varying demands. No client or transactions is too big or too small for us. We are committed to honor and execute all transaction for all types of clients, for which we have experts at every stage. For bigger accounts we have relationship managers who are managements graduates and who can understand clients needs, expectations and aspirations, and ensure that all activities are fine tuned to deliver appropriate services.

At Jhaveri, the ideology is learn and earn we constantly strive and then thrive. We have more than 100 professionals who possess sound knowledge in financial markets out of which, more than 75 have cleared the NCFM tests, and have competence in various areas of operations. Everyone is constantly trained and equipped professionally to cater to the clients in the most effective manner. At Jhaveri, we believe in total customer satisfaction. Our highly professional team of experts works persistently to offer the best services, by always being up to date and receptive. We are proud of our highly qualified staff which always strives to ensure client delight. We always respect investors privacy and confidentiality. Our people provide the intangibles that success story.

Every bit of decision at Jhaveri backed by intensive research, which makes us highly reliable and trustworthy. The company believes in in-depth and well-


timed research which covers the entire range of industry and economy and hence substantial value addition can be made in its service by providing continuous and accurate decision making tools to the investors. Dedicated research analysts provide timely synopsis of the industry as well valuable investment tips to optimize their returns. The team maintains a balance between financial and technical tools to arrive at sound solutions. Jhaveri is always well equipped with latest database and statistics to provide quality input for its research wing. The teams always share its insights on the economy investment climate, market and industry sentiments, and smart investment choise. ABOUT THE COMPANY We are Gujarats leading broking house with a strong and stable position in the financial markets having extensive experience in financial services capital markets mutual fund distribution and have varied skill-set to support the team to develop the business. Looking into Business opportunity. The company is developing in a very aggressive way all over India. Horizontally and vertically having full infrastructure with all the necessary corporate facilities. COMPANYS PHILOSOPHY Providing quality customer service is the corner stone of the companys philosophy- consistently meeting all customer requirements in every way. COMPANYS GOALS To march ahead challenging the horizon of the service industry in providing benchmark services. Create value for customer enabling them to be competitive and differentiate themselves on the marketplace



To be the best broking house by offering world class financial services and cliental satisfaction VISION Jhaveri shall be recognized as a market leader and to build a unique organization of those who think different, and redefine rules. Jhaveri believes in complete freedom in doing ones own work and focusing more on end results.


Product 1. Equity broking 2. Derivatives trading 3. Commodities 4. E-trading 5. Depository service 6. IPD 7. Mutual fund

Service 1. Daily telephonic tips 2. SMS/E-mail updates 3. Online market suggestion/chat 4. Dally derivatives strategy 5. Weekly recommendations 6. Research reports 7. Wealth creation seminars 8. Digital contract notes



Equity broking Right information at the right time is the first step towards taking right decision for more than 15 years. Equity broking mainstay at JHAVERI. From saudas in the ring to fully computerized trading; we have delivered real value for money service with our esteem traditional team.

Derivative trading and daily strategy

A derivative includes a security derived from a debt instrument, share loan whether secured or unsecured, risk instrument or contact for differences or any other form of security.

With JHAVERI online trading account, you can buy and sell shear in an instant! Anything you like and from anywhere you like!

Depository service
An efficient way of guarding your entire share and other eligible securities, by holding them in electronic, dematerialized from. Your holding of physical share certificates is converted into an electronic record or dematerialized, and reflects as a credit balance in your Demat account. JHAVERI is member of NSDL since 2000, providing best value for money with lowest rate and free AMC.

Online market suggestion/chat.

JHAVERIS highly qualify team will update you with latest national. International market news. Technical levels, fundamental company result and many more news financial market.


-: INTRODUCTION OF MUTUAL FUND :Different Investment Avenue are to investors. Mutual funds also offer good investment opportunities to the investors. Like all investments, they also carry certain risks. The investors should compare the risk and expected yields after adjustment of tax on various instruments while taking investment decisions. After adjustment of tax on various instruments while taking investment decisions. The investors may seek advice from experts and consultants including agents and distributors of mutual funds schemes while making investment decisions. Attempt has been made to provide information in question answer format which may help the investor in taking investment decisions. A mutual fund is a trust that pools the savings of number of investors who share a common financial goal. Anybody with an investable surplus of ad little as a few thousand rupees can invest in mutual funds. These investors buy unit of a particular mutual fund scheme that has a defined investment objective and strategy the money fund collected is than invested by the fund manager in different types of securities. These could range from share to debentures to money market instruments, depending upon the schemes stated objectives. The income earned through these investment and the capital appreciations realized by the scheme are shared by its units holder in proportion to the number of units common man as it offers an opportunity to invest in diversified, professionally managed basket of securities at a relatively low cost.

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-: CONCEPT OF MUTUAL FUND :Mutual fund unit are an investment vehicle that provides a mean of participation in the stick market for the people who have neither the time, nor the money, our perhaps the expertise to undertake direct investment in equity successfully, on another level, they also provide a rout into specialist markets where direct investment often demands both more that and more knowledge than an investors or his financial advisor may possess. The basic idea is simple a large number of investors pool their money in order to obtain a spread of professionally managed stock exchange investment that they cannot obtain individually. The advantage is that the investor in mutual fund is taking much less of a risk than a direct equity investor, because in the number of stock held obviously reduces the effect that any one stock can have on the overall performance of the equity portfolio.

A mutual fund is divided into equal portfolio called units. The price of unit is calculated regularly by the managers, rather than being determine supply and demand in the market. The pieces are quoted for unit the higher (OFFER) price being the price the investor pays to units, and the lower (BD) price being the price he will receive for unit sold back to the mangers. Mutual fund manager are the only people allowed to make a market in mutual fund units, and they must prepared to buy units from and sell units to the public at any time. The price of units any mutual fund is governed by the value of the underlying securities. The price will therefore fluctuate with movement in the market sector in which a fund is invested. The value of an investor holding in unit can therefore, like and investment in share, go down as well as up.

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A mutual fund is a trust that pools the saving 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 this investment and the capital appreciation realized is share by its unit holder 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 following chart describes broadly the mutual fund cycle.

Investmen t


Fund manager

Securitie s

Mutual fund operation flow chart First of all units the mutual fund are issued in the market by which small investors are investing their funds in the particular mutual fund. This collected money pool to the fund manager. The fund manager has a good knowledge about the capital market, in investing money into the securities. With that

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investment they generate profit or loss. These earning are converted into return and passes back to the investors.

-: ORGANISATION OF MUTUAL FUND :There are many entities involved in the organization of mutual fund. A mutual fund which is sets up in the form of trust. The investor are put trust on the sponsors for making profit for them. The organization of mutual fund is done by many participants like, 1) Sponsors 2) Trustees 3) AMC ( Asset Management Company) 4) Custodian

The organization chart is mention as under:



Everyone are participating the organization of mutual fund have different works to do like, the trustees of a mutual fund hold its property for the benefit of unit holders. The AMC managers the fund by making investment in various types of securities. The custodian holds the securities of various scheme of the fund in its custody. The trustees are vested it the general power of superintendence and direction over AMC; they monitor the performance the compliance of the SEBI regulation by the mutual fund.

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The mutual fund industry in started in 1963 with the formation of unit trust of India, at the initiative of the government of India of and reserve bank of India. The history of mutual fund in India can be broadly divided into four distinct phases. FIRST PHASE 1964-97 Unit trust of India (UTI) was established on 1963 by act of parliament. It was set up by the Reserve Bank of India function 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.6700 cores of assets under management. SECOND PHASE 1987-1993 (ENTRY OF PUBLIC SECTOR FUND) 1987 marked the entry of non- UTI, public sector mutual fund set up by public sector banks and life insurance corporation of India (LIC) and general insurance corporation of India (GIC). SEBI mutual fund was the first non-UTI mutual fund established in June 1987 followed by can bank mutual fund (Dec 87), Punjab national bank mutual fund (ague. 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 industry had assets under management of Rs. 47,004 cores.

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THIRD PHASE 1993-2003 (ENTRY OF PRIVATE SECTOR FUNDS) With the entry of private sector funds in 1993, a new 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 come into being, under which all mutual fund registered in July 1993. The 1993 SEBI (mutual fund) regulation was substituted by a more comprehensive and revised mutual fund regulation in 1996. The industry now functions under the SEBI regulation 1996. The number of mutual fund house 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 setting with total assets of Rs. 1, 21,805 cores. The unit trust of India with Rs.44, 541 corers of assets under management was way ahead of other mutual funds.

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-: SET UP OF MUTUAL FUND :Mutual fund is set up in the form of a trust, which has sponsor, trustees, and asset management companies (AMC) and custodian. The trust is established by a sponsor or more than one sponsor who is like promoter of a company. The trustees of the mutual funds hold its properties for the benefits of the unit holders. Asset management company (AMC) approved by SEBI managers the fund by making investment in various types of securities. Custodian, who is recognized with SEBI, holds the securities of various schemes of the fund in its custody. The trustees are vested with the general power of superintendence and directions over AMC. They monitor the performance and compliance of SEBU regulations by the mutual fund. SEBI regulation required that at least two third of the directors of trustee company or board of trustees must be independent i.e. they should not be associate with the sponsors. Also 50% of directors of AMC must be independent. All mutual funds are required to register with SEBI before they launch any scheme.

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-: NET ASSETS VALUE (NAV) OF THE SCHEME :The performance of a particular scheme of a mutual fund is denoted by net asset value (NAV) Mutual funds invest the money collected from the investors in securities markets. In simple words NAV is the market value of all securities changing every day. NAV of a scheme also varies on day-to-day basis. The NAV per unit is the market value of securities of a scheme divided by the total number of units of a scheme on any particular date. For example:If a market value of securities of a mutual fund scheme is Rs. 200/- lac and the mutual funds has issued 10/- lac units of Rs. 10/- each to the investors, than the NAV per unit of the fund is Rs. 20/-, NAV is required to disclosed by the mutual funds on the regular basis daily of weekly depending on the type of schemes.

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-: TYPES OF MUTUAL FUND SCHEME :Wide variety of mutual fund scheme exists to the needs such as financial position, risk tolerance and return expectation etc. The chart below gives an overview into the existing types of scheme in the industry. BY STRUCTURE: 1. Open-ended schemes 2. Close-ended schemes 3. Interval scheme

BY INVESTMENT OBJECTIVES: 1. Growth schemes 2. Income schemes 3. Money market schemes 4. Balanced schemes 5. Gilt fund OTHERS SCHEMES: 1. Tax saving schemes 2. Sector schemes 3. Index schemes 4. Sector specific schemes

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1) BY STRUCTURE These can be categorized into three types. Open ended schemes:-

These have no fixed maturity period. Open-ended scheme are available for subscription and redemption (purchase and sale) on an ongoing basis. The units are bought and sold at NAV related price. Close-ended scheme:-

These schemes have a stipulated maturity period. Typically, you can invest in them for between 3 to 10 years. These schemes are open for subscription only during a specified period at the time of their launch. In case of listed scheme, you can invest in the scheme at time of the initial issue and thereafter units of the scheme can be bought or sold on the stock exchange where the scheme is listed. Interval scheme:-

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Interval scheme are a combination of open-ended schemes. These schemes remain open for repurchase only during a specified period.

-: INVESTMENT OBJECTIVES :Growth scheme:The corpus of a growth scheme is invested substantially in equity and equity related instruments. The principal objective such scheme is to achieve longterm capital growth for unit holders. Income scheme:The corpus of an income scheme is invested primarily in fixed income securities such as government of India securities debt obligation or state and local government, corporate debenture and money market instruments. A small portion or the corpus, say 10% to 20% may be invested in equity instruments. The primary objective of an income scheme is to provide a steady income without impairing the capital. Money market scheme:The concept of a money market scheme (also referred to as liquid schemes) is invested in primary in money market instruments such as treasury bills, commercial paper certificates of debt, call and notice money market instrument have a negligible interest risk exposure as well as credit risk exposure. The principal value of a unit in a liquid scheme remains stable through the periodic income may vary depending on the conditions in the money market.

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Balanced scheme:Balanced fund gives you the best of growth and income schemes. Balanced funds invest both in equity and fixed income securities. Their returns are generally less volatile as compared to pure equity funds. SBI mutual funds magnum balanced fund gives investor a combination of regular income with moderate growth.

Government securities scheme (gilt fund):The corpus of a government securities scheme (also referred as a gilt scheme) is invested in sovereign securities issued by the central and state government and securities that are unconditionally guaranteed by the central and state government for payment of interest and principal. The scheme may also invest in money market instrument for liquidity purposes. The objective of such scheme is to earn a modest return without any credit risk. 2) OTHER SCHEME: Sector scheme:A sector scheme invests its corpus on the equity sector such as pharmaceuticals, information technology, and telecommunication and so on. Sectorial scheme appeal to investors interested in taking bet on those sectors. SECTOR SPECIFIC FUNCTION SCHEME:These are the funds/scheme high invest in the securities of only sectors or industrial that are specify in the offer documents. Exemplas: pharmaceutics, software, fast moving consumer goods (FMCG), petroleum stock etc. the returns on these funds are dependent on the performance or

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the respective sectors/ industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance or those sectors / industries and must exit at an appropriate time. They may also seek advice or an export.

TAX SAVING SCHEMES:These scheme offer tax rebates to the investors under specific provisions of the income Tax Act, 1961 as the government offers tax incentives for investment in specific avenues. Example, equity linked saving schemes (ELSS), pension scheme launched by the mutual funds also offers tax benefits. These scheme are growth oriented and invest pre-dominantly in equates. Their growth opportunities and risk associated are likely any equity-oriented scheme. INDEX SCHEMES:Index funds replicate the portfolio of a particular index such as the BSE sensitive index , S&P NSE 50 index (nifty) etc. these scheme invest in the securities in the same weight age comprising of an index. SBI mutual fund has the magnum index funds which replicate the portfolio of S&P NSE 50 index (nifty).

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-: BENEFIT OF MUTUAL FUND INVESTMETNT :1) Professional management Mutual funds employ the service of skilled professionals who have years of experience to back them up. They use intensive research techniques to analyze each investors option for the potential of along with the risk level to come up with the figures for performance that determine the suitability of any potential investment. 2) Convenient administration return potential:-

Returns in the mutual fund are generally better than any other option in any other avenue over a reasonable period of time. People can pick their investment horizon and stay put in the chosen fund for the duration. Equity funds can perform most other investments over long period by placing long term calls on fundamentally good stacks. The debt fund too will outperform other option such as banks. Though they are affected by the interest rate risk in general, the returns generated are more as they pick securities with

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different duration that have different yields and so are able to increase the overall returns from the portfolio. 3) Diversification Investment is spread across a wide cross-section of industries and sector and so the risk is reduced. Diversification reduces the risk because all stocks dont move in the same direction at the same time. One can achieve this diversification through mutual fund with far less money than one can on his own.

4) Liquidity:In open-ended schemes, you get your money back promptly at net asset value related price from the mutual fund itself. With close-ended scheme, you can sell your units on a stock exchange at the prevailing market price or avail of the facility of direct repurchase at NAV related price or avail of the facility of direct repurchase at NAV related price which some closeended and interval scheme offer you periodically. 5) Transparency :Being under regulatory framework, mutual funds have to disclose their holdings, investment pattern and all the information that can be consider as materials, before all investors. These means that the investment strategies out looks or the market and scheme related details and disclosed with reasonable frequency to ensure that transparently exist in the system. This is unlike any other investment option in india where the investor knows nothing as nothing is disclosed. 6) Choice of scheme:Mutual fund invest according to the underlying investing objective as specified at the time of launching the scheme. So we have equity funds,

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debt funds, gilt funds and many other cater to the different needs of the investor s. The availability of these option makes them a good option. While equity funds can be as risky as stoke markets themselves, debt funds offer the kind or securities that are aim for the time or making investments. Money market funds offer the liquidity that is desired by big investor who wishes to park surplus funds for any short term periods. Balanced funds actor to the investor having an appetite for risk greater than the debt funds but less than the equity funds. So, while equity fund are good bet for a long term, they may not find favor with corporate or high net worth individuals who have short term needs.

7) Well regulated :Unlike the company fixed deposits, where there is little control with the investment being considered as unsecured debt from the legal point of view, the mutual fund industry is well regulated. All investment have to be accounted for, decision judiciously taken. SEBI acts as true watch dog in this case and can impose penalties on the AMCS at fault. The regulations, designed to protect the investors interests are also implemented effectively. 8) You get experts guidance;A mutual fund, like your SBI mutual funds, has professionals whose constant job is to study the financial market for you. They research and analysis market trends and prospects of various sectors and companies. Something that is difficult for you to do alone. So, when it comes to making the right investment decision, you can be sure that your money is being invested by experts. 9) Reduced risk. Optimum returns:By nature a mutual fund is multiple investment opportunities bundled into one. Normally returns on investment from a single securities depend on

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how poorly the company fares. But with mutual funds your money the right invested across different companies or sectors. By doing this your investment may average your return.

-: FREQUENT QUESTIONS ARISING IN MIND OF INVESTORS :Some questions that generally arise in mind of any individual during investment in mutual funds are as follows:Why Investor should invest in mutual funds? Mutual funds offer benefits, which are too significant to miss out. Any investment has to be judge on the yardsticks of return, liquidity and safety. Convenience and tax efficiency are the other benchmark relevant in mutual funds investments. In the wonderful game of finance safety and return are two opposite goals and investor cannot be nearer to both at the same time. Mutual funds are pooled resources that get invest in diversified portfolio. The crux of mutual fund investing is averaging the risk. When risks are equalized so are the returns. Can Non-Resident Indian (NRI) invest in mutual funds? Non-Resident Indian can also invest in mutual funds. For this necessary details in this respect are given in the offer document of the scheme.

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Is there any Difference Between Investing In Mutual Fund And In An Initial Public Offering of A Company? There is a difference existing in investing in mutual fund or in Initial Public Offering (IPO). IPO of companies may open at lower or higher price than the issue price depending on market sentiment and perception of inventors. However in case of mutual funds, the per value of the units may not rise of fall immediately after allotment. A mutual fund takes some time to make investment in securities. NAV of the scheme depends on the value of securities in which the funds have been deployed.

How to invest in a scheme of mutual funds? Mutual funds normally come out with an advertisement in newspapers publishing the date of launch of new schemes. Investors can also contact the agents and distributors of mutual funds who are spread all over the country for necessary information and application forms. Forms can be deposited with mutual fund through the agents and distributors who provide such services. Now a day the post office and banks also distributes the units of mutual funds. However the investors may please note the mutual funds schemes being marketed by the banks and post offices should not be taken as their own scheme and no any assurance or returns is given by them. The only role of banks and post offices is to help distribution of mutual funds scheme to the investors. Investors should not be carried away by commission, gifts given by agents and distributor for investing in a particular scheme. On the other hand they must consider the track record of the mutual fund and should not take objective decisions.

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If scheme in the same category of different mutual funds are available, should they choose with lower Net Assets Value (NAV)? Some of the investors have the tendency to prefer the scheme that is available a lower NAV compare to the one available at higher NAV. Sometime they prefer a new scheme which is issuing units at Rs. 10/- where as the existing scheme in the same category are available at much higher NAV. Investors may please note that in of scheme of different mutual funds relevance. On the other hand investor should choose a scheme based on its merit considering performance track record of the mutual fund, service standards, professional management etc. this can be explain form the following example.

How to choose the best scheme from a number of schemes available? As already mentioned, the investors must read the offer document of the mutual fund scheme very carefully. They also look into past performance of the scheme of other scheme of the mutual fund. They may also compare the performance of other scheme having similar investment objectives. Tough past performance of the scheme is not an indicator of its future performance and good performance in the past may or may not sustained in the future, this one of the important factors for making investment decisions. In case of debt oriented schemes, a part from looking into past returns the investor should also see the quality of debt instrument which is reflected in their rating. A scheme with lower rate of return but having investment in better rated instrument may be safer. Similarly, in equity scheme also, the investors may look for quality portfolio. they also seek advice of expert. Is the higher net worth of the sponsor guaranteed for better returns? In the offer of document of any mutual fund scheme, financial performance including the net worth of the sponsor for a period of three years is required to

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be given. The only purpose is that investor should know the past record of the company which has sponsored the mutual fund. However, higher net worth of the sponsor does not mean that the scheme would give better return or the sponsor would compensate in case the NAV falls. Where can an investor look out for information on mutual funds? Almost all the mutual fund gave their own web sites. Investors can also assess the NAV, half yearly results and portfolios of all the mutual funds at the web sites association of mutual funds in India (ANFI) their web site is www.amfiindia.com. They have also published useful literature for the investors.

Investors can log on to the web site of security exchange board of Indias (SEBI) web site www.sebi.gov.in and go to mutual funds selection for information on SEBI regulation and guide lines, data on mutual funds, draft offer document filed by mutual fund, addresses of mutual funds etc. in the annual report of SEBI available on the web site, a lots and of information on mutual funds is given by them. There are a number of other web sites lives www.moneycontrol.com, www.moneypower.com etc. which proved a lot of information of various scheme of mutual funds including yields over a period of time. Many newspapers also publish useful information on mutual funds on daily and weekly basis. Investors may approach their agents and distribution to guide them in this regard. If mutual fund scheme is wound up, what happens to the money invested? In case of winding up of scheme, the mutual funds pay a sum based on prevailing NAV after the adjusting of expenses. Unit holders are entitle to

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receive a report on winding up from the mutual funds which gives all necessary details. What should investors look in a document? An offer document contains useful information about the scheme required to be given to the prospective investors by the mutual fund. An investor should look for the main features of the scheme, risk factors, initial issue expenses, recurring expenses charged to the scheme, entry or exit loads, sponsors track record, educational qualification and work experience of key personal including fund managers.

How do investors get to know where their money has been invested? By law mutual funds is required full portfolio their entire scheme on a halfyearly basis. They publish these in leading newspapers. Some mutual funds even send the portfolio to their units holders. The schemes portfolio shows investment made in each securities viz. equity, debentures, money market instruments, government securities, and others. You also get to know their proportions, market value and NAV. These portfolio statements are also required to disclose illiquid securities in the portfolio, investment made in rated and unrated debt securities, Non-Performing Assets (NAPs), etc. Where can investors redress their complaints? Every mutual fund company mentions the name of the contact person in the offer document who may be approached in case of a query, complaint or grievance. In case or unsatisfactory response from the company, investors can approach SEBI. On receipt of complaints, SEBI takes up the matter with the concerned mutual fund and follows up with till the matter is resolved.

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-: THINGS TO CONSIDER WHEN YOU INVEST :1) Is the funds goal the same as investors? Ask what is the funds goal? Investors will meet his dreams only if his fund gives him what he expects. If he wants growth, his goal is to increase the value of his investment over the long term. If he want regular income, his goal is to receive a regular flow of earnings from his investments. If he want stability, his goal is to protect his investment from erosion. Some funds emphasize on one goal, other try to assign priorities among goals, still others try to strike a balance among different goals. 2) What is the funds investment strategy? Investor will find in the offer document. It describes the range of securities the fund may purchase, how it selects them, the types of securities it choose, and investment practices the fund may use. 3) How has the fund performed? A funds past performance cannot predict its future results, but looking at it give you a fair idea as to how it compares to other relevant performance measures and to other funds with the same

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investment objectives. It is not difficult to get this information, as all funds generally disclose their performance for the last 5 years or since inception if it if less than 5 years old. 4) Knowing risk and how to manage it? Risk sounds daunting. But it is simply used to express the possible fluctuation in the value of a fund. Like every investment mutual funds too are subject to price variations, or risks. Some funds are more stable while other s are volatile. But where mutual funds duffer from others is that through experience of expert mutual fund managers it can be minimized. The expertise of mutual fund managers in selected fundamentally sound securities, timing their purchase and sale helps them to build a diversified portfolio that minimizes risk and optimize returns.

5) Whether diversification helps to manage risks and optimize returns? In simple terms, its about putting your eggs in different baskets. When you invest in one mutual fund, you instantly spread your risk over a number of different companies. Diversification is a basic risk management tool. By diversification you can rebalance your portfolio to meet your changing needs and goals. Investors who maintain a mix of equity shares, bonds and money market securities have a greater chance of earning optimizes return over time, than who invest only on conservative investments. According, a diversified approach to investing, combining the growth potential of equities with the income of bonds and the stability of money markets, helps moderate your risk and enhance your potential return. 6) How is asset allocation done? Asset allocation is based on a simple theory that the type of class of securities you own is much more important than the securities itself. Asset allocation is generally the most important factor in determining the return on your investments. Not only does it lower risk , but also optimizes returns over a period of time. Your returns are safeguarded because the six or seven asset classes in a well balanced portfolio react differently to

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changes in market conditions like inflation, riding, or falling interest rates, market sectors coming into or falling out of favor or recession.

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-: RESEARCH METHODOLOGY:Research is a common parlance refers to a search for knowledge. Once can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact. research is an art of scientific investigation. The Advanced Learner's Dictionary of Current English lays down the meaning of research as "a careful investigation of inquiry especially through search for new facts in any branch of knowledge." Some people consider research as " a movement from the known to the unknown." Research is an academic activity and as such the term should be used in a technical sense. It is the pursuit of truth with the help of study. observation, comparison and experiment. In short, the research for knowledge through objective and systematic method of finding solution to a problem is research. The systematic approach concerning generalization and the formulation of a theory is also research. As such the term 'research' refers to the systematic method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of solution(s) towards the

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concerned problem or in certain generalizations for some theoretical formulation. .

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-: RESEARCH OBJECTIVES : To know various investment of capital market in which investors trade. To know investors awareness about the different financial securities. To get in depth knowledge of Mutual fund. To know what questions arise in the minds of the investors while investing. To know the criteria of investment in the mutual funds.

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-: SAMPLING PLAN:SAMPLE DESIGN:A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well lay down the number of items to be included in the sample:For example:- The size of the sample. Sample design is determined before data are collected. There are many sample design from which a researcher can choose some designs are relatively more precise and easier to apply than others. Researcher must select a sample design which should be reliable and appropriate for his research study.

SAMPLE UNIT:A decision has to be taken concerning a sampling unit before selecting sample. Sampling unit may be a geographical one such as state, district, village etc ... or a construction unit such as house, flat etc ... or it may be a social unit such as family, club, school etc ... it may be individual. The researcher will have to decide one or more of such units that he has to select for his study. So I select Individual investor within my city as my sample unit.

SIZE OF SAMPLE:This refers to the number of items to be selected from the universe to constitute a sample. This is major problem before a researcher. The size of sample should neither be excessively large, nor too small. It should be optimum. An optimum sample is one which fulfills the requirements of efficiency, representative ness, reliability and flexibility while defying the use of sample; researcher must determine the desired precision as also an acceptable confidence level for the estimate. The size of population variance needs to be considered as in case of larger variance usually a bigger sample is needed. The size of population must be kept in view for

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this also limits the sample size. The parameters of interest in a research study must be kept in view, while deciding the size of the sample costs to dictate the size of sample that we can draw. As such budgetary constraint must invariably be taken into consideration when we decide the sample size. As in my research I take so person as my sample size. I have done my research taken by their view. I have selected 50 people as my sample and by questionnaire I have done my research

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: DATA COLLECTION:In my research I am going to study descriptive research analysis. Descriptive research includes surveys and fact finding enquiries of different kind. The major purpose of description of the topic what you select. I select two ways two collect my data that is primary data and secondary data.

PRIMARY DATA:Primary research means it contains direct conversation or contact with the concerned person about the respective topic. Such people should be executive, staff members, customers, operating heads etc. where the view is to immediately take down data by way of writing or any other form. From doing this one has to know each and every thing about mutual fund. I had tried my best to get the knowledge about concept and place of Mutual Fund in investor's mind. So to get the write information about the knowledge and willingness of investors against mutual fund I do a survey on mutual fund and prepared a questionnaire for this survey. I meet different people in JSPL & outside JSPL and take their view about mutual fund. This survey gives me too much knowledge about mutual fund. For this I can know the attitude, knowledge, investment philosophy of investors against mutual fund. This survey questionnaire has attached on next page.

SECONDARY DATA:Secondary research contains the collection of data through various indirect readymade materials like magazine, books, journals, annual report and brochures. Internet, etc... Here the information is collected from the data available on internet, brochures of SSI mutual fund. Indirect talk with investors of JSPL. For my research I have used primary and secondary data, I done sample survey of 50 people. My questionnaire is as follow:

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Level Total

1000020000 30

2000030000 10

3000040000 06

4000050000 04

The answer of question gives the idea of average income level of investors who are willing to invest in different kind of investments. A chart of level of investor's income is as a above. By seeing the above chart I can say that 60% persons have monthly income of Rs. 10000-20000 per month. 20% persons have monthly income of Rs 20000- 30000 per month and 12% persons earns Rs. 30000-40000 per month and 8% persons have monthly income of Rs. 40000-50000 and above per month. So we can say that most of the investors have come under the first income slab i.e. Rs. 10000-20000 per month. Q: 2 WHAT PERCENTAGE OF YOUR INCOME DO YOU INVEST? ~ 40 ~

Investment made by an investor from his income.

Investmen t Total >10% 20 10%-20% 14 20%-30% 08 <30% 08

The answer of this question will give the information about the percentage of investment made by the investors from his total income. This is shown in the above mention chart. By seeing the above chart I can conclude that 40% persons are investing less than 10% of their income secondly 28% persons are investing 10%-20% of their total income while 16% persons are investing 20%-30% of their income and same way 16% persons are investing more than 30% of their income. This shows that most of the investors investing less than 10% of their total income.

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Kind of investment


Total risk 5

Risk and return 25

Securities 20

Kind's answer of the above question gives the information about the attitude of the investors. Means we can understand the risk taking ability of the investors and what type of investments they prefer. From the above mention chart we can say that maximum 50% of investors are prefer RISK AND RETURN means they prefer to invest their money in Medium Fisk and Medium Return. While 40% of investors prefer to invest their money in SECURITY it means they prefer Low Risk and Low Return and the least number of people i.e. Only 10% are preferred to invest in TOTAL RISK means High Risk and High Returns.


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Types Total

Shares 16

Mutual fund 17

Fixed deposit 25

Post 13

Insurance 15

Fixed asset 14

Types answer of the above question will give the information about the preference of investors i.e. nowadays in which types of investment they are investing their money most of the investors are investing their money in so many sectors but the most preferable investment they prefer to invest is fixed deposit because the crisis in stock market they are 50% who are prefer to invest in shares while mutual fund acquired second position with 34% thirdly the investors prefer to invest their money in shares which is acquired 32%. Then they are thinking about safety means they invest their money in insurance sector which acquired 30% and after that they preferred fixed assets that is 28% and security like post is acquired 26%. In short we can say that on second position they are thinking about mutual fund.

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Yes 43

No 7


In this question I came to know that people are aware about the mutual fund or not. It is possible that they are not aware very much about the mutual fund and also they are not equal aware about mutual fund. From the above information by study of different type of people I can see that there are few people who are not aware about the mutual fund they are only 14% but in nowadays there is need of knowing every field in the market the 86% people are aware about the mutual fund. They are less or much aware about the mutual fund. How much they are aware about the mutual fund knows by the next question and analyze it.

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Knowledge of investors

Very high








The answer of the above question will give the information about investor's knowledge regarding mutual fund. Means how much they are aware about mutual fund what type of knowledge they have about mutual fund. Form this we can analyze that 40% of the investors possess medium knowledge about mutual fund while 24% have high knowledge and the proportion of low knowledge and the person who has very high knowledge about mutual fund is only 8%. And the person who has very low knowledge and don't know anything about mutual fund is equal i.e. 14%. Most of investors have medium investors have medium knowledge regarding mutual fund for this we can say that mainly they are dependent on the advice of broker of financial advisor

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Want Total

Yes 40

No 10

By above information we can easily understand that by the crisis in market nowadays people makes no more different they now also want to invest in mutual fund but on safe basis and people who not aware about mutual fund they don't want to invest in mutual fund. On above information that the 80% people want to invest into the mutual fund and only 20% not want to invest in mutual fund in that the 14% are those who are not aware anything about the mutual fund.

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Awareness about different market Total

Yes 40

No 10

As the above diagram shows people are aware about the different company's mutual fund available in the market but they are not very much aware means many people are know everything about it or many are only know few thing about mutual fund. So as per the above information we can't say that people are how much aware about the existing mutual fund. From the above diagram we can say that people who want to invest in mutual fund are aware about the different company's mutual fund available in the market are 80% and who not aware about it, are 20%.

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Basis Total

Past records 22

NHVs 12

Advice from others 16

From the above chart we can easily understand that people are want to invest in mutual fund by examine the past record. They have belief that which mutual fund's past record is good is better than the other. Some are also taking advice from brokers and well wishers and consultants they are depending on them. But very few are see NAV and after that they decide to invest in which type of mutual fund. The 44% of people are those who see the past record of the company and 32% are those who take advice from the others but only 24% are people who see the NAV of the mutual fund and after that they decide to invest in which type of mutual fund.

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Name Total

Study your self 22

Take advice from broker or recommendation from financial advisor 28

From this question we can get the answer about the investor's philosophy regarding investment in mutual fund. Means what they are doing before investing in mutual fund what steps they follow, By looking this chart we can easily understand that most of the investors i.e. 56% depending on their financial advisors or broker or tip from financial concern. On the contrary 44% of investors are study itself about mutual fund and invest their money, This shows the poor knowledge of investors about mutual fund.

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Q: 11 WHAT ARE THE CRITERIA THAT YOU CONSIDER AT THE TIME OF INVESTMENT? GIVE RANKING. In this questing I have put three criteria namely LIQUIDITY, TAX BENEFITS AND SAFETY and asks the investors to give them ranking as per their priority. And they gave ranking in 1 to 3 numbers.

Position/Rank Liquidity Tax benefits Safety

TOTAL 15 20 15

Criteria that investor at the time of investment:

By this question we can able to know that at the time of making investment in mutual fund what are the criteria that the investor consider at the time of making investment means for what purpose they invest their money in mutual fund.

POSITION :By seeing the above chart we can say that the first criteria that the investor invest their money in mutual fund is Tax Benefits some mutual funds provide tax benefits facility so that investor invest their money in this fund. Than after secondly they prefer Safety and Liquidity on 1st. position.

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Observe NAV Total

Yes 35

No 15

From the above table and diagram we come to know that people are not more habitual to observe NAV daily. By observe NAV they know about the current market value of their mutual fund. But some people see NAV for only see and some are observe it and decide their investment plan. People who see NAV are 70% but from them such are only see NAV they are not observe the market and people who not even see the NAV are 30% which is very high.

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Mutual fund to be a better Option:

Option Total Yes 30 No 20

From this question we can able to know the awareness of investors regarding mutual fund. Means how much the investors are aware about mutual fund and their policies. From the above mention chart we can say that most of the investor i.e. 65% are saying that they consider mutual fund to be a better option while still 35% says that mutual fund is not better option. ;

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Opinion Total

Risky 17

Not Risky 33

In my project i try to know the peoples belief about the mutual fund. So i ask them as their opinion mutual fund is risky or not. I come to know that people who are invest in mutual fund have very positive attitude they think that in any investment there is a risk and taking risk they get benefit without taking any risk no one can get profit. In any field there is a risk but as other securities mutual fund is not more risky. People who consider mutual fund as risky are only 34% and who consider mutual fund less risky or not are 66%. So we can say people have trust on mutual fund and they believe that mutual fund is better option than the other securities.

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-: SUGGESTIONS : From the first analysis i.e. investors income level I can see that most of the investors are of income group of 10000-20000 p.m. are more as compare to other i.e. 20000-30000, 30000-40000 and 40000-50000 and above. So I can suggest that investor from the income group of 30000-40000 and 4000050000 and above are taken into consideration. Than mutual fund companies and broker would have good business. By doing the second analysis I can say that most of the investors are investing less than 1O%of their income in mutual fund than after 10%-20%, 20%-30% and 30% and above respectively. The reason for this is that the investors that involved in investment are mostly earned 10000-20000 p.m. so the investment would be as per that only. So here the brokers and agents should try to get some investors who can invest more amount of money form their income so that they can have good business. While they have to also promote those person who are not doing any kind of investment from their income in to the market. While those new investors involved in the market we can raise investment invested in to the market and also raise investment done into the mutual fund. With the information given in third analysis shows the nature and attitude of investors are different and we cannot change the attitude of investors. But for make increase in sale of mutual fund one can try to diversify the investment done by the investor in mutual funds. For this we gone to attract that investor who has attitude of taking risk in those investments which have more return. So we have to convert investments of the investors in to mutual funds. By analyzing the fourth question we can see that most of the investors are prefer to invest in fixed deposit because in that their money are safe than in mutual funds. Here we can diversify their investment in fixed deposits to mutual fund because this money are remains ideal for so many years while money invested in mutual funds are circulating throughout the years.

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Basically it is seen in fifth Question we can see that there are some people who even not know about the mutual fund. We can try to improve their interest in mutual fund by giving them most profitable scheme or trustful mutual fund that they have trust that in which mutual fund they invest is become beneficial to them. In sixth Question we can see that most of the investors posses medium knowledge regarding mutual fund while few investors posses very high knowledge. We have to increase awareness of those investors who don't know anything regarding mutual fund and convinced them to make investment in it. We also try to increase the knowledge of those investor who posses medium knowledge. By seeing the seventh Analysis we can say that most of the investors are invest in mutual fund but they invest very low part of their income or some are not even invest in mutual fund. We have to convince those people we are not even invest in mutual fund and also those who invest very small part that they invest more in mutual fund so the advice is that brokers have to arise awareness regarding mutual fund in those investors and convince them to invest in mutual fund by familiarizing them with the concept and benefits of mutual fund. By analyze the eighth Question we can see that people who invest in mutual fund are aware about the different kinds of mutual fund of different companies available in the market but by that analysis we can't say how much they know about the different type of mutual fund so advice to broker that they deeply give knowledge about the different mutual fund. By seeing ninth question we can see that people invest in mutual fund by sawing past record of the companies in the mutual fund it is good decision but many times it happens that company can't be constant and also it happen that NAV of today is good but that company cannot work properly and at the end investor has to face loss. If brokers are trustful than they give true advice. Otherwise they give advice for those mutual funds in which they get more commission, so I say that in every field there is positive and negative point investors have to choose those funds in which they analyze

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properly and they think it is good. By looking towards question tenth we can understand most of the investors are waiting for tip from their financial advisor or broker. And these people are giving advice of those funds in which they can get good commission, So investors have to think on their own whether it is beneficial to him to invest or not rather to take advice, By seeing 12th Question that people are not seeing changes in NAV in daily or who see it are ignore it but people should be habitual to consider the changes in NAV which becomes beneficial to them, By seeing thirteenth Question we see that many of the investors are saying mutual fund is better option but some are also those who can't consider this. Here mutual fund companies have to remove this attitude by forming some strategy so that they made investment in mutual fund.

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-: LIMITATIONS:Limitations of my study are as under: People do not give right answer of the question The respondent are afraid that the data give by them will be misused, so, they at times do not give proper answers. They can't understand the importance of this research so they give roughly reply Many of them do not give all the answers of the question asked. The time is very less for the research.

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-: CONCLUSION:There is no doubt that India has a vast mutual fund investment potential and the chances are very bright that its potential will increase in the near future. But the future of mutual fund investment market in India will largely depend on awareness of investor regarding mutual fund and increasing potential of investment by an individual. This is mainly dependent upon different types of schemes available in the market by mutual fund companies and their past performance plus the criteria like tax benefits, liquidity, safety, wealth option are offered by them. It also depends upon commission offered by the mutual fund companies. In short we can say that mutual fund have bright future if companies take care about need and wants of customer as well as broker or sub brokers. This project was a great learning experience as it gave me a practical exposure to the securities market especial the mutual funds.

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-: BIBLIOGRAPHY:Book References : The Indian Financial System And Development: Vasant Desai, Himalaya Publication House Second revised edition 2007 Research and Methodology C.R.Kothari, Former principal college of commerce university of Rajasthan Methods & techniques, Second edition 2004

Websites : www.amfiindia.com www.about.com www.sebi.gov.in www.nseindia.com www.mutualfund.com www.ejhavery.com www.jhaverysec.com

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-: ANNEXURE :FREQUENTLY USED TERMS Net Asset Value (NAV):Net asset value is the market value of assets of the scheme minus its liabilities. The per unit NAV is the asset value of the scheme divided by the number of units outstanding on the valuation date.

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

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

Redemption Price:It is the price at which open-ended scheme repurchase its units close-ended schemes redeem their units on maturity. Such prices are NAV related. Sales Load:Sales load is a charge collected by a scheme when it sells the units. And it is also called, 'Front-end' load. Schemes that do not charge a load are called 'No Load' schemes.

Repurchase or 'back-end' load:It is a charge collected by a scheme when it buys back the units from the unit holders.

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10000 -20000 30000 - 50000 20000 - 30000 50000 or more




>10% 20% - 30% 10% - 20% 30% or more







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