SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF MBA

INVESTMENTS OPPORTUNITIES IN INDIA - JSL

SUBMITTED BY: LOVEE JAIN MBA (2009-2011) SECTION-FF2 ID NO-D0911FWIIPM10107G(JAI-3/JC-3037)

INDUSTRY GUIDE1

ACKNOWLEDGEMENT

Any work of this magnitude requires the inputs, efforts and encouragement of the people from all sides. In compiling this project report, I have been fortunate enough to get active and kind cooperation from many people without whom my endeavors wouldnt have been a success. There is an old adage that says that you never really learn a project until you practice it. So, I would like to extend my deep gratitude and heartfelt thanks to our Project Manager & Trainer MR.RAHUL KAPILA for extending their immense help to us in acquiring valuable knowledge on the subject for successful completion of the project.

EXECUTIVE SUMMARY

In few years Mutual Fund has emerged as a tool for ensuring ones financial well being. Mutual Funds have not only contributed to the India growth story but have also helped families tap into the success of Indian Industry. As information and awareness is rising more and more people are enjoying the benefits of investing in mutual funds. The main reason the number of retail mutual fund investors remains small is that nine in ten people with incomes in India do not know that mutual funds exist. But once people are aware of mutual fund investment opportunities, the number who decide to invest in mutual funds increases to as many as one in five people. The trick for converting a person with no knowledge of mutual funds to a new Mutual Fund customer is to understand which of the potential investors are more likely to buy mutual funds and to use the right arguments in the sales process that customers will accept as important and relevant to their decision. This Project gave me a great learning experience and at the same time it gave me enough scope to implement my analytical ability. The analysis and advice presented in this Project Report is based on market research on the saving and investment practices of the investors and preferences of the investors for investment in Mutual Funds. This Report will help to know about the investors Preferences in Mutual Fund means Are they prefer any particular Asset Management Company (AMC), Which type of Product they prefer, Which Option (Growth or Dividend) they prefer or Which Investment Strategy they follow (Systematic Investment Plan or One time Plan). This Project as a whole can be divided into two parts.

The first part gives an insight about Investment Opportunities in India and its various aspects, the Company Profile. One can have a brief knowledge about Mutual Fund and its basics through the Project.

The second part of the Project consists of Investing in Mutual funds, Benefits in investing in Mutual Funds. This Project covers the topic INVESTMENTS

OPPORTUNITIES IN INDIA - JSL . The data collected has been well

organized and presented. I hope the research findings and conclusion will be of use.

Table of contents

S.No. 1 2

Contents Introduction Company Profile (1) Jindal Stainless Ltd. (2) The Group

Page No. 4 5 9

3 4 5 6

Key Investment Decision Mutual Funds Analysis of Mutual funds in Liquid Schemes JSLs Investment Part of Balance Sheet of The Year 2007-08 44

7 8

Conclusion Suggestion & Recommendations

53 56 57 59

Bibliography

Introduction
Investment Scenario in India
India is thought to be a first-rate investment. India has a vast potential for foreign investment and foreign players find it their next investment destination. As rightly said by Sukomal C Basu, Chairman & Managing Director, Bank of Maharashtra; India is the fourth largest economy in the world and has the second largest GDP among developing countries, in purchasing power terms. It is experiencing growth with macro economic stability and is in the process of integrating with the global economy. Far-reaching economic reforms initiated in July 1991 generated numerous business opportunities, leading to degeneration with removal of most licensing procedures. Economics authorities and various research studies carried out across the globe confirm the fact that India and China will rule the world in the 21st century. For over a century the United States has been the leading economy in the world but key developments have taken place in the world economy since then, leading to the change in focus from the US and the rich countries of Europe to the two Asian giants- India and China. The wealthy countries of Europe have seen the supreme decline in global GDP share by 4.9 percentage points, followed by the US and Japan with a decline of about 1 percentage point each. Within Asia, the rising share of China and India has more than made up the moribund global share of Japan since 1990. During the seventies and the eighties, ASEAN countries and during the eighties South Korea, along with China and India, contributed to the rising share of Asia in world GDP. According to some experts, the share of the US in world GDP is expected to fall (from 21 per cent to 18 per cent) and that of India to rise (from 6 per cent to 11 per cent in 2025), and hence the latter will emerge as the third pole in the global economy after the US and China. By 2025 the Indian economy is projected to be about 60 per cent the size of the US economy. The transformation into a tri-polar economy will be complete by 2035, with the Indian economy only a 6

little smaller than the US economy but larger than that of Western Europe. By 2035, India is likely to be a larger growth driver than the six largest countries in the EU, though its impact will be a little over half that of the US. India, which is now the fourth largest economy in terms of purchasing power parity, will overtake Japan and become third major economic power within 10 years. Any company or firm irrespective of its size, which aspires to be a global player cannot for long ignore India which is expected to become one of the best emerging economies. However the million-dollar question here for foreign players is What is the success-failure ratio? Success in investing in India will depend on four factors like: Accurate estimation or at least feasible estimation of the India's potential Proper Risk Assessment while investing in India Careful strategic planning backed by thorough research on investment industry Failure in investing in India can depend on three factors like: Underestimation of Indian investment intricacies Overestimation of investment potential in India Complexities & reservations of Indian System One point that investors should understand about investing in India is that India is an Investment goldmine for long-term growth. While short term profits may be churned out From time to time but they are not of a pennys worth in the longer run.

Investment

Financial Instruments

Equities Equities are a type of security that represents the ownership in a company. Equities are traded (bought and sold) in stock markets. Alternatively, they can be purchased via the Initial Public Offering (IPO) route, i.e. directly from the company. Investing in equities is a good long-term investment option as the returns on equities over a long time horizon are generally higher than most other investment avenues. However, along with the possibility of greater returns comes greater risk.

Mutual funds A mutual fund allows a group of people to pool their money together and have it professionally managed, in keeping with a predetermined investment objective. This investment avenue is popular because of its cost-efficiency, risk-diversification, professional management and sound regulation. You can invest as little as Rs. 1,000 per month in a mutual fund. There are various general and thematic mutual funds to choose from and the risk and return possibilities vary accordingly.

Bonds Bonds are fixed income instruments which are issued for the purpose of raising capital. Both private entities, such as companies, financial institutions, and the central or state government and other government institutions use this instrument as a means of garnering funds. Bonds issued by the Government carry the lowest level of risk but could deliver fair returns.

Deposits Investing in bank or post-office deposits is a very common way of securing surplus funds. These instruments are at the low end of the risk-return spectrum.

Cash equivalents These are relatively safe and highly liquid investment options. Treasury bills and money market funds are cash equivalents.

Non-financial Instruments

Real estate With the ever-increasing cost of land, real estate has come up as a profitable investment proposition.

Gold The 'yellow metal' is a preferred investment option, particularly when markets are volatile. Today, beyond physical gold, a number of products which derive their value from the price of gold are available for investment. These include gold futures and gold exchange traded funds.

Gold exchange-traded funds The modern international method of investing in gold is via gold mutual funds. India should soon be catching p in this area.

Government Securities India

Government Securities are securities issued by the Government for raising a public loan or as notified in the official Gazette. They consist of Government Promissory Notes, Bearer Bonds, Stocks or Bonds held in Bond Ledger Account. They may be in the form of Treasury Bills or Dated Government Securities. Mostly Government Securities are interest bearing dated securities issued by RBI on behalf of the Government of India. GOI uses these funds to meet its expenditure commitments. These securities are generally fixed maturity and fixed coupon securities carrying semi-annual coupon. Since the date of maturity is specified in the securities, these are known as dated Government securities, e.g. 8.24% GOI 2018 is a Central Government security maturing in 2018, which carries a coupon of 8.24% payable half yearly. Features of Government Securities 1) Issued at face value 2) No default risk as the securities carry sovereign guarantee. 3) Ample liquidity as the investor can sell the security in the secondary market 4) Interest payment on a half yearly basis on face value 5) No tax deducted at source 6) Can be held in D-mat form. 7) Rate of interest and tenor of the security is fixed at the time of issuance and is not change. subject to

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8) Redeemed at face value on maturity 9) Maturity ranges from of 2-30 years. 10) Securities qualify as SLR investments.

The dated Government securities market in India has two segments:

1) Primary Market: The Primary Market consists of the issuers of the securities, viz., Central and Sate Government and buyers include Commercial Banks, Primary Dealers, Financial Institutions, Insurance Companies & Co-operative Banks. RBI also has a scheme of noncompetitive bidding for small investors. 2) Secondary Market: The Secondary Market includes Commercial banks, Financial Institutions, Insurance Companies, Provident Funds, Trusts, Mutual Funds, Primary Dealers and Reserve Bank of India. Even Corporate and Individuals can invest in Government Securities. The eligibility criteria are specified in the relative Government notification. Yield Based: In this type of auction, RBI announces the issue size or notified amount and the tenor of the paper to be auctioned. The bidders submit bids in term of the yield at which they are ready to buy the security. If the Bid is more than the cut-off yield then its rejected otherwise it is accepted

Price Based: In this type of auction, RBI announces the issue size or notified amount and the tenor of the paper to be auctioned, as well as the coupon rate. The bidders submit bids in terms of the price. This method of auction is normally used in case of reissue of existing government securities. Bids at price lower then the cut off price are rejected and bids higher then the cut off price are accepted. Price Based auction leads to a better price discovery then the Yield based auction. 11

Bank Fixed Deposits (FD)

Fixed Deposit or FD is the most preferred investment option today. It yields up to 8.5% annual return depends on the Bank and period. Minimum period is 15 days and maximum is 5 years and above. Senior citizens get special interest rates for Fixed Deposits. This is considered to be a safe investment because all banks operated under the guidelines of Reserve Bank of India.

National Saving Certificate (NSC)

NSC is backed by Govt. of India so it is a safe investment method. Lock in period is 6 years. Minimum amount is Rs100 and no upper limit. You get 8% interest calculated twice a year. NSC comes under Section 80C so you will get an income tax deduction up to Rs 1,00,000. From FY 2005-'06 onwards interest accrued on NSC is taxable. Public Provident Fund (PPF)

PPF Another form of investment backed by Govt. of India. Minimum amount is Rs500 and maximum is Rs70,000 in a financial year. A PPF account can be opened in a head post office, GPO and selected branches of nationalized banks. PPF also comes under Section 80C so individuals could avail income tax deduction up to Rs 1,00,000. Lock in period for PPF is 15 years and interest rate is 8%. Unlike NSC, PPF interest rate is calculated annually. Both PPF and NSC considered to be best investment option as it is backed by Government of India.

Stock Market Investing in share market is another investment option to get more returns. But share market investment is volatile to market conditions. Before investing you should have a thorough knowledge about its operation.

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Mutual Funds
Mutual Fund companies collect money from investors and invest in share market. Investing in mutual funds is also subject to market risks but return is good. To know more about mutual funds visit Mutual Funds There are many investment options available like investing in Gold, Real Estate etc.

Capital market Capital Market is the market from where individuals, companies and govt. can long term financing by engaging in buying and selling of securities. Capital Market comprises of Primary Market and Secondary Market. In primary market, newly issued stocks and bonds are exchanged and in the secondary market trade of existing stocks and bonds take place. Capital Market can be divided into Bond Market and Stock Market. In Bond Market, buying and selling of newly issued and existing bonds takes place. In Stock Market, exchange of newly issued and existing shares or stocks is carried out. The participants of capital market are mainly those who have a surplus of funds and those who have a deficit of funds. The persons having surplus money want to invest in capital market in hope of getting high returns on their investment. On the other hand, people with fund deficit try to get financing from the capital market by selling stocks and bonds. These two kinds of activities keep the capital market going. Capital Market is characterized as the provider of long-term financing. The instruments used for this long-term financing are equity instruments, insurance instruments, derivative instruments and especially bonds.

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Initial Public Offering Companies can raise large amount of long term capital from capital market by issuing Initial Public Offering or IPO. A company gets floated in the stock market through an IPO. Whenever a company get financing through IPO, it has to lose some control over the company, proportional to the amount of shares that is sold to the investors. But the company interested in issuing IPO has to satisfy the entry standards to get a full listing in the stock market. Earlier these entry standards were quite stringent, but nowadays initiatives are taken by the stock markets to make the entry a bit easy for the new, technology based innovative companies. New stock markets are also created with simplified entry requirement for new innovative companies. These new stock markets have all the characteristics of a public stock market and these provide the new companies their much required access to capital.

Venture Capital in the Capital Market Venture capital is the fund that is raised through capital market by specialized agents. This Venture Capital is one of the main sources of funding for the new business companies. Venture capitalists buy bonds and shares issued by a new company. They are not interested in getting immediate dividends from the company in which they have invested. They want the companies to expand their scale which will in turn increase the value of their invested capital. So, the Venture Capitalists are generally interested in promoting new companies with high growth prospect.

Bonds and Debentures in India

A Bond is a loan given by the buyer to the issuer of the instrument. Bonds can be issued by companies, financial institutions, or even the government. Over and above the scheduled interest payments as and when applicable, the holder of a bond is entitled to receive the par value of the instrument at the specified maturity date.

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Bonds can be broadly classified into Tax-Saving Bonds Regular Income Bonds Tax-Saving Bonds offer tax exemption up to a specified amount of investment. Examples are: ICICI Infrastructure Bonds under Section 88 of the Income Tax Act, 1961 NABARD/ NHAI/REC Bonds under Section 54EC of the Income Tax Act, 1961 RBI Tax Relief Bonds Regular-Income Bonds, as the name suggests, are meant to provide a stable source of income at regular, pre-determined intervals. Examples are: Double Your Money Bond Step-Up Interest Bond Retirement Bond Encash Bond Education Bonds Money Multiplier Bonds/Deep Discount Bond Similar instruments issued by companies are called debentures. .

Liquidity of a Bond :
Selling in the debt market is an obvious option. Some issues also offer what is known as 'Put and Call option.' Under the Put option, the investor has the option to approach the issuing entity after a specified period (say, three years), and sell back the bond to the issuer. In the Call option, the company has the right to recall its debt obligation after a particular time frame. For instance, a company issues a bond at an interest rate of 12 per cent. After 2 years, it finds it can raise the same amount at 10 per cent. The company can now exercise the Call option and recall its debt obligation provided it has declared so in the offer document. Similarly, an investor can exercise his Put option if interest rates have moved up and there are better options available in the market.

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Market Value of a Bond:

Market value of a bond depends on a host of factors such as its yield at maturity, prevailing interest rates, and rating of the issuing entity. Price of a bond will fall if interest rates rise and vice-versa. A change in the credit rating of the issuer can lead to a change in the market price.

Mode of Holding Bonds : Bonds are most commonly held in form of physical certificates. Of late, some bond issues provide the option of holding the instrument in demat form; interest payment may also be automatically credited to your bank account.

A financial marketplace where debt instruments, primarily bonds, are bought and sold is called a bond market. The dealings in a bond market are limited to a small group of participants. Contrary to stock or commodities trading, the bond market (also known as the debt market) lacks a central exchange. Players in a Bond Market The bond market involves transactions among three key players: Issuers: They comprise of organizations and other entities that sell bonds to raise funds to finance their operations. These include banks, both local and multinational, as well as the government as an issuing entity. Underwriters: This segment consists mainly of investment banks and institutions that are leaders in the investing business. They help the issuer to raise funds by selling bonds. Also, they perform the key role of middlemen and undertake crucial activities, such as preparing legal documents, prospectus and other collaterals to simplify transactions.

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 Purchasers: This is the group that buys the debt instruments. In addition to the government and corporations, this section consists of individual investors who invest in the bond market through unitinvestment trusts, close-ended funds and bond funds.

Types of Bond Markets

Based on the types of bonds in which they deal, the Securities Industry and Financial Markets Association have categorized the bond market into five types. These are:

Corporate: includes trading in debt securities issued by corporations and industries to raise funds. Government and Agency: involves trading in bonds issued by government departments as well as enterprises sponsored by the government or agencies backed by it. Municipal: covers transactions in municipal securities issued by states, districts and counties. Mortgage Backed Securities: includes dealings in asset-backed securities that are protected by mortgages. Risk Factors in a Credit Market Although dealings in the fixed-income market might be lucrative, an investor must be aware that these are prone to variations in interest rates. When the market-based interest rate rises, there is a decline in the value of existing bonds. This is on account of the issuance of new bonds at a higher interest rate. In order to limit your exposure to losses arising from escalations in the interest rate, it is advisable to hold a bond till maturity. Investment Bonds Bond, Bonds Bond Rates Bond Yield 17

Company Profile
JSL
Jindal Stainless (JSL) was established in 1970 and is under the Jindal Group. Jindal Stainless Ltd. has expanded since its establishment from a steel plant of a single unit to become a multi-product and multi-national steel company. The Jindal Stainless Company's main business is to produce stainless steel. In India, the company is the only manufacturer of strips of stainless steel which are used for making surgical and razor blades. Jindal Stainless Company supplies to the Indian government CR strips. It also supplies coin blanks to the mint in India as well as in the world. The various other services offered by the Jindal Stainless Ltd. are services in inventory management, engineering services in technical value, warehousing, material testing, and customized products. Jindal Stainless Company is the biggest producer of stainless steel in the country. The company has a 40% market share in the stainless steel sector in India. The company has subsidiary companies which are Jindal Stainless> Steel way and PT Jindal Stainless. The total income of the Jindal Stainless amounted to Rs. 8,598.2 million in 2005-2006 and the next year the figure stood at Rs. 12,014.9 million. The net profit of the company amounted to Rs. 507.9 million in 2005- 2006 and the next year the amount increased to Rs. 826 million. Jindal Stainless Company is planning to establish a stainless steel plant in Orissa with the production capacity of 1.6 million tons per year. The company will make an investment of around Rs. 56 billion in setting up this plant. Jindal Stainless has become the leading company in the stainless steel sector in India. As it plans to expand in the near future, the company is sure to become one of the leading stainless steel companies in the world.

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Stainless Steel
In 1912, an English metallurgist, Harry Brearly, accidentally discovered Stainless Steel. In the process of discovering an alloy to protect cannon bores in England, what came into existence was stainless steel. Ever since, the magic of this material has become an integral part of our lives. From underground pipes to space, dairy equipment to pharma equipment, coins to automobiles. Stainless Steel is everywhere. Like we like to say, "Tomorrow definitely belongs to stainless steel".

The Group
Jindal Organization, set up in 1970 by the steel visionary Mr. O.P. Jindal, has grown from an indigenous single-unit steel plant in Hisar, Haryana to the present multi-billion, multi-national and multi-product steel conglomerate. The organization is still expanding, integrating, amalgamating and growing. The group places its commitment to sustainable development, of its people and the communities in which it operates, at the heart of its strategy and aspires to be a benchmark for players in the industry the world over. The Jindal Organization today is a global player. It's relentless quest for excellence has reaped rich benefits and it is today one of the worlds most admired and respected groups within the steel fraternity.

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Jindal Stainless Jindal Stainless is in many ways very much like the material it produces. Like stainless steel the company is versatile in its thought process, strong and unrelenting in its operations, environment friendly in its manufacturing process, bright, shining and beautiful in its community support activities. The list of the properties of stainless steel is endless, just as our values are all encompassing. Jindal Stainless has always been committed to innovation and progression, research and development. Our innovations are admired beyond the geographical boundaries of our country. No wonder we are the strategic partners of global leaders by choice. Our achievements narrate a story of our determination to succeed and our passion to win. We will continue to leverage our opportunities in creating excellence that the world cannot even think about. Today we are the largest integrated stainless steel producer in India, tomorrow we will rule the world. Jindal Stainless is a ISO: 9001 & ISO: 14001 company is the flagship company of the Jindal Organization. The company today, has come a long way from a single factory establishment, started in 1970. As the numero uno it has taken on the task of making stainless steel a part of everybody's life by taking a 360 degrees approach from production of raw materials to supply of architecture and lifestyle related products.

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Hisar Plant, India

At Hisar, Jindal Stainless has India's only composite stainless steel plant for the manufacture of Stainless Steel Slabs, Blooms, Hot rolled and Cold Rolled Coils, 60% of which are exported worldwide. Precision Strips The company produces stainless steel precision strips in various grades. These strips are produced in narrow 20-Hi mills in the precision cold rolling unit. Blade Steel The Company is the exclusive producer of stainless steel strips for making razor and surgical blades in India. Coin Blanks Besides supplying CR Strips to the Government of India, the plant at Hisar houses a coin blanking line for supply of coin blanks to the Indian Mint and Mints in the global markets.

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KEY INVESTMENT DECISION

There are a lot of investment opportunities in India. But out of which some have more risk but also more return & some have less risk but also less return. If a company i.e. Jindal stainless limited want to investment their money in the different Investments options e.g.:- bonds, secondary market, primary market, mutual funds, bank a/c, investing in gold etc. They want less risk option which good return. So, Acc. to that investing in mutual funds & that too in liquid funds , debt funds & some in government securities & bonds.

Best option would be:Mutual funds in some schemes i.e. liquid , liquid plus , debt funds. Some in Government Bonds have which very less risk & also have as tax benefit. As company have to do investments because rather keeping cash , it is better to use those funds to generate some more funds which help in near future. As the company is

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Benefits of Investment
There are advantages to being a disciplined investor. Investing regularly via Systematic Investment Plans (SIP), even if these are small amounts, offers many benefits like: There is no need to time the markets as you invest at predetermined intervals. This spares you from investing a lump sum amount at peak prices. You benefit from an investment principle called 'Rupee cost averaging'. Since you invest fixed sums at regular intervals, you pick up more units when the prices are low and less units when the prices are high. This brings down the average cost of your units. A Systematic Investment Plan renders to you the power of compounding, especially if you begin your SIP early in life. SIPs inculcate the savings habit in investors. On a regular basis you put aside affordable sums of money and without realising it, over the long run you could amass great wealth. It is a hassle-free mode of investment since you can issue standing instructions for the regular transfers of money into your SIPs. SIPs serve as a great financial tool to counter inflation To know more about the different SIP options which are appropriate for your specific needs and are in line with your profile, click here. Our Relationship Manager will get in touch with you shortly.

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Types of Investment
There are really only three types of investment: 1) Interest-Bearing Loans 2) Shares 3) Things My strategy is to put any money that might be needed within two years into a bank or building society or into National Savings. And for money that you can set aside for at least two years, buy shares. Just make sure you spread the risk of holding shares by building a portfolio - I recommend a minimum of 10 different companies. If you do these things, your money will be as safe as it can be. And what is more, you will make the best possible return.

Hypothetical example:Introducing George. I met him last month, and could tell that he was not a happy man. He was holding his head in his hands, and looking decidedly glum. I asked him what was the matter. He spoke slowly, as if he was hardly able to believe that what he was telling me had really happened. "In August," he began, "I went to see my financial advisor. He warned me of a coming recession in the United States. He told me that it would be bad for business, and disastrous for the stock market." "So I sold all my shares, and I took his second piece of advice." Here, his face twisted into a grimace. "I put all my cash into the building society Northern Rock." He concluded by telling me how he had queued up for six hours at his local branch that morning, and had successfully retrieved his money. I thought I had better try to say something helpful. "You had better not leave it under the mattress, not with inflation at 4% and rising. At that rate your money will lose one-third of its real value within ten years." Somehow this did not go down very well. George gave me a look in which mingled elements of hatred and despair. And then he cried out. "Well, what the heck should I do with my savings? I don't trust anyone any more."

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There are really only three types of investment. 1) Interest-Bearing Loans Whether you lend money to a friend, to a business or put it in the bank or building society, you do so in order to receive interest. The risk of making a loan is that the borrower will default on interest payments, or will be unable to repay the principal sum of the loan itself. Generally, of course, we do not make individual loans, but we pool our money with others and rely upon the management of banks and building societies to arrange the loan of our money.

2) Shares When you buy a share, you become an owner of the company concerned. The company concerned is under no obligation to pay you any interest (in the form of dividends) or to return your capital to you. Your return comes from the profitable growth of the company over time. In the long run the risk comes from the possibility that the company will not prosper, or will overstretch itself by borrowing heavily in anticipation of revenues that do not materialise (as happened with Marconi). In the short term there is the risk that the stock market will have a wobble and the price of your shares will temporarily fall, irrespective of the state of the company. 3) Things By things, it means works of art, antiques, stamp collections, etc - but for most people, it means property. It do not regard any of these as investments in the true sense. They make no contribution towards economic growth in the way that business and finance do. A company like Next has clearly grown over time by increasing its sales, its customers and its profits. It has clearly created value in the same way that the beanstalk in your garden grows and creates beans.

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Things, though, do not grow. You do not return to a house after 12 months and find that it has sprouted a couple of extra rooms. So, although you can receive some rental income from your 'things', you depend for profit upon finding someone to buy them from you for more than you paid for them. This risk is that you will be unable to do so. We can lend money, buy shares or collect 'things' directly, or else we can club together. In the case of buying stamps or shares or property, there is no reason why we cannot do so for ourselves. But when it comes to lending for interest, there is a good case for spreading our risk by lending to a large number of different borrowers. But once we club together, whether through putting our cash into a building society, or into a managed fund of shares, or into some form of savings policy such as those offered by Equitable Life, we introduce a whole new category of risk. There are other risks besides these. There is the possibility that the Government will renege on its promises. There is the dealing risk. Especially with property there is the risk that you might not be able to sell something when you want to, whatever the price. But when you are devising your savings strategy, you should always adhere to three principles. First of all, never invest into anything you do not understand. Secondly, keep things as simple as you can. And thirdly, wherever possible, cut out the middleman. My strategy - and this is what I would advise George and anyone in his position - is to put any money that might be needed within two years into a bank or building society or into National Savings Depending upon the amount, you might want to open accounts with more than one organization. And for money that you can set aside for at least two years, buy shares. Don't go into a fund where you will suffer from the huge management fees that I described in the August issue, and where you might also suffer from the incompetence of the management company. Just make sure you spread the risk of holding shares by building a portfolio - I recommend a minimum of 10 different companies. If you do these things, your money will be as safe as it can be. And what is more, you will make the best possible return.

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Mutual Fund

All About Mutual Funds

Before we understand what is mutual fund, its very important to know the area in which mutual funds works, the basic understanding of stocks and bonds. Stocks : Stocks represent shares of ownership in a public company. Examples of public companies include Reliance, ONGC and Infosys. Stocks are considered to be the most common owned investment traded on the market. Bonds : Bonds are basically the money which you lend to the government or a company, and in return you can receive interest on your invested amount, which is back over predetermined amounts of time. Bonds are considered to be the most common lending investment traded on the market. There are many other types of investments other than stocks and bonds (including annuities, real estate, and precious metals), but the majority of mutual funds invest in stocks and/or bonds.

What Is Mutual Fund

A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds). When you invest in a mutual fund, you are buying units or portions of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund. Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient and also easy to invest in, thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing risk & maximizing returns. 27

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 Unit Trust of India is the first Mutual Fund set up under a separate act, UTI Act in 1963, and started its operations in 1964 with the issue of units under the scheme US-64.

Overview of existing schemes existed in mutual fund category

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. The table below gives an overview into the existing types of schemes in the Industry.

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 nonUTI players entered the industry. In the past decade, Indian mutual fund industry had seen a 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 rose the AUM to Rs. 470 in 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 28

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. The major players in the Indian Mutual Fund Industry are:

Major Players of Mutual Funds In India

Rank 1 2 3 4 5 6 Scheme Name JM Core 11 Fund - Series 1 Growth Tata Indo-Global Infrastructure Fund - Growth Tata Capital Builder Fund Growth Standard Chartered Enterprise Equity Fund - Growth DBS Chola Infrastructure Fund Growth ICICI Prudential Fusion Fund Series III - Institutional 7 8 9 10 11 12 Growth DSP Merrill Lynch Micro Cap Fund - Regular - Growth ICICI Prudential Fusion Fund Series III - Retail - Growth DBS Chola Small Cap Fund Growth Principal Personal Tax saver Benchmark Split Capital Fund Plan A - Preferred Units ICICI Prudential FMP - Series Date Mar 26 , 2008 Mar 26 , 2008 Mar 26 , 2008 Mar 26 , 2008 Mar 26 , 2008 Mar 26 , 2008 Mar 26 , 2008 Mar 26 , 2008 Mar 26 , 2008 Mar 25 , 2008 Mar 26 , 2008 Mar 26 9.93 10.19 6.36 124.66 141.51 9.89 4.56 4.51 3.75 3.44 3.14 2.91 -0.85 22.39 -81.78 29.97 13.71 -7.88 29 NAV (Rs.) 8.45 8.26 12.44 14.07 9.01 10.2 Last 1 Week 5.12 5.05 5.03 5 4.65 4.62 Since Inception -94.64 -40.42 15.35 20.92 -17.17 23.69

13 14 15

33 - Plan A - Growth Tata SIP Fund - Series I Growth Sahara R.E.A.L Fund - Growth Tata SIP Fund - Series II Growth

, 2008 Mar 26 , 2008 Mar 25 , 2008 Mar 26 , 2008

10.25 7.64 9.93

2.38 1.86 1.58

2.39 -49.52 -0.94

A mutual fund is a professionally-managed firm of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities.in other words we can say that A Mutual Fund is a trust registered with the Securities and Exchange Board of India (SEBI), which pools up the money from individual / corporate investors and invests the same on behalf of the investors /unit holders, in equity shares, Government securities, Bonds, Call money markets etc., and distributes the profits. The value of each unit of the mutual fund, known as the net asset value (NAV), is mostly calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding. The value of all the securities in the portfolio in calculated daily. From this, all expenses are deducted and the resultant value divided by the number of units in the fund is the funds NAV.

NAV =

Total value of the fund. No. of shares currently issued and outstanding

History of the Indian mutual fund industry:

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank. The history of mutual funds in India can be broadly divided into four distinct phases. 30

First Phase 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management.

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

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores.

Third Phase 1993-2003 (Entry of Private Sector Funds)

31

1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores.

Fourth Phase since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

Categories of mutual funds:

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Mutual funds can be classified as follow:

Based on their structure:

Open-ended funds: Investors can buy and sell the units from the fund, at any point of time.

Close-ended funds: These funds raise money from investors only once. Therefore, after the offer period, fresh investments can not be made into the fund. If the fund is listed on a stocks exchange the units can be traded like stocks (E.g., Morgan Stanley Growth Fund). Recently, 33

most of the New Fund Offers of close-ended funds provided liquidity window on a periodic basis such as monthly or weekly. Redemption of units can be made during specified intervals. Therefore, such funds have relatively low liquidity.

Based on their investment objective:

Equity funds: These funds invest in equities and equity related instruments. With fluctuating share prices, such funds show volatile performance, even losses. However, short term fluctuations in the market, generally smoothens out in the long term, thereby offering higher returns at relatively lower volatility. At the same time, such funds can yield great capital appreciation as, historically, equities have outperformed all asset classes in the long term. Hence, investment in equity funds should be considered for a period of at least 3-5 years. It can be further classified as:

i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is tracked. Their portfolio mirrors the benchmark index both in terms of composition and individual stock weightages.

ii) Equity diversified funds- 100% of the capital is invested in equities spreading across different sectors and stocks.

iii) Dividend yield funds- it is similar to the equity diversified funds except that they invest in companies offering high dividend yields.

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iv) Thematic funds- Invest 100% of the assets in sectors which are related through some theme. e.g. -An infrastructure fund invests in power, construction, cements sectors etc.

v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector fund will invest in banking stocks. vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.

Balanced fund:
Their investment portfolio includes both debt and equity. As a result, on the risk-return ladder, they fall between equity and debt funds. Balanced funds are the ideal mutual funds vehicle for investors who prefer spreading their risk across various instruments. Following are balanced funds classes:

i) Debt-oriented funds -Investment below 65% in equities. ii) Equity-oriented funds -Invest at least 65% in equities, remaining in debt.

Debt fund:

They invest only in debt instruments, and are a good option for investors averse to idea of taking risk associated with equities. Therefore, they invest exclusively in fixed-income instruments like bonds, debentures, Government of India securities; and money market instruments such as certificates of deposit (CD), commercial paper (CP) and call money. Put your money into any of these debt funds depending on your investment horizon and needs. i) Liquid funds- These funds invest 100% in money market instruments, a large portion being invested in call money market. 35

ii)Gilt funds ST- They invest 100% of their portfolio in government securities of and T-bills. iii)Floating rate funds - Invest in short-term debt papers. Floaters invest in debt instruments which have variable coupon rate. iv)Arbitrage fund- They generate income through arbitrage opportunities due to mis-pricing between cash market and derivatives market. Funds are allocated to equities, derivatives and money markets. Higher proportion (around 75%) is put in money markets, in the absence of arbitrage opportunities. v)Gilt funds LT- They invest 100% of their portfolio in long-term government securities. vi) Income funds LT- Typically, such funds invest a major portion of the portfolio in long-term debt papers. vii) MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an exposure of 10%30% to equities. viii)FMPs- fixed monthly plans invest in debt papers whose maturity is in line with that of the fund.

Investment Strategies:
36

1. Systematic Investment Plan: under this a fixed sum is invested each month on a fixed date of a month. Payment is made through post dated cheques or direct debit facilities. The investor gets fewer units when the NAV is high and more units when the NAV is low. This is called as the benefit of Rupee Cost Averaging (RCA) 2. Systematic Transfer Plan: under this an investor invest in debt oriented fund and give

instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same mutual fund. 3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual fund then he can withdraw a fixed amount each month.

Risk v/s. return

37

The above graph shows that if we invest our money in sectoral funds then, we get maximum returns but risk is also maximum. If we invest in liquid funds liquid funds the return is less but the risk is also less.

As far as any company who want to invest in mutual fund should invest in liquid & debt funds. This will make some return on investment & with less risk. So, if a company like JSL want to invest their surplus cash in mutual funds & govt. bonds. This will make some return on less risk & helps in making tax rebate on investing in govt. bonds & mutual funds.

Working of a Mutual fund:

38

The entire mutual fund industry operates in a very organized way. The investors, known as unit holders, handover their savings to the AMCs under various schemes. The objective of the investment should match with the objective of the fund to best suit the investors needs. The AMCs further invest the funds into various securities according to the investment objective. The return generated from the investments is passed on to the investors or reinvested as mentioned in the offer document.

Working of Mutual Fund

Mutual Funds
Before we understand what is mutual fund, its very important to know the area in which mutual funds works, the basic understanding of stocks and bonds. Stocks : Stocks represent shares of ownership in a public company. Examples of public companies include Reliance, ONGC and Infosys. Stocks are considered to be the most common owned investment traded on the market. Bonds : Bonds are basically the money which you lend to the government or a company, and in return you can receive interest on your invested amount, which is back over predetermined amounts of time. Bonds are considered to be the most common lending investment traded on the market. There are many other types of investments other than stocks and bonds (including annuities, real estate, and precious metals), but the majority of mutual funds invest in stocks and/or bonds.

What Is Mutual Fund

39

A mutual fund is just the connecting bridge or a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds). When you invest in a mutual fund, you are buying units or portions of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund. Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient and also easy to invest in, thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing risk & maximizing returns. 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

40

41

Overview of existing schemes existed in mutual fund category

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. The table below gives an overview into the existing types of schemes in the Industry.

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Type of Mutual Fund Schemes

BY STRUCTURE

Open Ended Schemes An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.

Close Ended Schemes A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor.

Interval Schemes
Interval Schemes are that scheme, which combines the features of open-ended and close-ended schemes. The units may be traded on the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV related prices.

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BY NATURE

Under this the mutual fund is categorized on the basis of Investment Objective. By nature the mutual fund is categorized as follow:

44

1. Equity fund:

These funds invest a maximum part of their corpus into equities holdings. The structure of the fund may vary different for different schemes and the fund managers outlook on different stocks. The Equity Funds are sub-classified depending upon their investment objective, as follows:

Diversified Equity Funds Mid-Cap Funds Sector Specific Funds Tax Savings Funds (ELSS)

Equity investments are meant for a longer time horizon, thus Equity funds rank high on the riskreturn matrix.

2. Debt funds:
The objective of these Funds is to invest in debt papers. Government authorities, private companies, banks and financial institutions are some of the major issuers of debt papers. By investing in debt instruments, these funds ensure low risk and provide stable income to the investors. Debt funds are further classified as:

Gilt Funds: Invest their corpus in securities issued by Government, popularly known as Government of India debt papers. These Funds carry zero Default risk but are associated with Interest Rate risk. These schemes are safer as they invest in papers backed by Government.

Income Funds: Invest a major portion into various debt instruments such as bonds, corporate debentures and Government securities.

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MIPs: Invests maximum of their total corpus in debt instruments while they take minimum exposure in equities. It gets benefit of both equity and debt market. These scheme ranks slightly high on the risk-return matrix when compared with other debt schemes.

Short Term Plans (STPs): Meant for investment horizon for three to six months. These funds primarily invest in short term papers like Certificate of Deposits (CDs) and Commercial Papers (CPs). Some portion of the corpus is also invested in corporate debentures.

Liquid Funds: Also known as Money Market Schemes, These funds provides easy liquidity and preservation of capital. These schemes invest in short-term instruments like Treasury Bills, inter-bank call money market, CPs and CDs. These funds are meant for short-term cash management of corporate houses and are meant for an investment horizon of 1day to 3 months. These schemes rank low on risk-return matrix and are considered to be the safest amongst all categories of mutual funds.

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3. Balanced funds:
As the name suggest they, are a mix of both equity and debt funds. They invest in both equities and fixed income securities, which are in line with pre-defined investment objective of the scheme. These schemes aim to provide investors with the best of both the worlds. Equity part provides growth and the debt part provides stability in returns.

Further the mutual funds can be broadly classified on the basis of investment parameter viz , Each category of funds is backed by an investment philosophy, which is pre-defined in the objectives of the fund. The investor can align his own investment needs with the funds objective and invest accordingly.

BY INVESTMENT OBJECTIVE

Growth Schemes: Growth Schemes are also known as equity schemes. The aim of these schemes is to provide capital appreciation over medium to long term. These schemes normally invest a major part of their fund in equities and are willing to bear short-term decline in value for possible future appreciation.

Income Schemes: Income Schemes are also known as debt schemes. The aim of these schemes is to provide regular and steady income to investors. These schemes generally invest in fixed income securities such as bonds and corporate debentures. Capital appreciation in such schemes may be limited.

Balanced Schemes: Balanced Schemes aim to provide both growth and income by periodically distributing a part of the income and capital gains they earn. These schemes invest in both shares and fixed income securities, in the proportion indicated in their offer documents.

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Money Market Schemes: Money Market Schemes aim to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer, short-term instruments, such as treasury bills, certificates of deposit, commercial paper and inter-bank call money.

OTHER SCHEMES

Tax Saving Schemes: Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from time to time. Under Sec.88 of the Income Tax Act, contributions made to any Equity Linked Savings Scheme (ELSS) are eligible for rebate.

Index Schemes: Index schemes attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50. The portfolio of these schemes will consist of only those stocks that constitute the index. The percentage of each stock to the total holding will be identical to the stocks index weightage. And hence, the returns from such schemes would be more or less equivalent to those of the Index.

Sector Specific Schemes: These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of 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 of those sectors/industries and must exit at an appropriate time.

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Types of Returns:

There are three ways, where the total returns provided by mutual funds can be enjoyed by investors:

Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all income it receives over the year to fund owners in the form of a distribution.

If the fund sells securities that have increased in price, the fund has a capital gain. Most funds also pass on these gains to investors in a distribution.

If fund holdings increase in price but are not sold by the fund manager, the fund's shares increase in price. You can then sell your mutual fund shares for a profit. Funds will also usually give you a choice either to receive a check for distributions or to reinvest the earnings and get more shares.

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Pros & cons of investing in mutual funds:

For investments in mutual fund, one must keep in mind about the Pros and cons of investments in mutual fund.

Advantages of Investing Mutual Funds:

1. Professional Management - The basic advantage of funds is that, they are professional managed, by well qualified professional. Investors purchase funds because they do not have the time or the expertise to manage their own portfolio. A mutual fund is considered to be relatively less expensive way to make and monitor their investments. 2. Diversification - Purchasing units in a mutual fund instead of buying individual stocks or bonds, the investors risk is spread out and minimized up to certain extent. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. 3. Economies of Scale - Mutual fund buy and sell large amounts of securities at a time, thus help to reducing transaction costs, and help to bring down the average cost of the unit for their investors. 4. Liquidity - Just like an individual stock, mutual fund also allows investors to liquidate their holdings as and when they want. 5. Simplicity - Investments in mutual fund is considered to be easy, compare to other available instruments in the market, and the minimum investment is small. Most AMC also have automatic purchase plans whereby as little as Rs. 2000, where SIP start with just Rs.50 per month basis.

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Disadvantages of Investing Mutual Funds:

1. Professional Management- Some funds doesnt perform in neither the market, as their management is not dynamic enough to explore the available opportunity in the market, thus many investors debate over whether or not the so-called professionals are any better than mutual fund or investor himself, for picking up stocks.

2. Costs The biggest source of AMC income, is generally from the entry & exit load which they charge from an investors, at the time of purchase. The mutual fund industries are thus charging extra cost under layers of jargon.

3. Dilution - Because funds have small holdings across different companies, high returns from a few investments often don't make much difference on the overall return. Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money.

4. Taxes - when making decisions about your money, fund managers don't consider your personal tax situation. For example, when a fund manager sells a security, a capital-gain tax is triggered, which affects how profitable the individual is from the sale. It might have been more advantageous for the individual to defer the capital gains liability.

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Guidelines of the SEBI for Mutual Fund Companies :

Various investment options in Mutual Funds offer

To cater to different investment needs, Mutual Funds offer various investment options. Some of the important investment options include: Growth Option: Dividend is not paid-out under a Growth Option and the investor realises only the capital appreciation on the investment (by an increase in NAV). Dividend Payout Option: Dividends are paid-out to investors under the Dividend Payout Option. However, the NAV of the mutual fund scheme falls to the extent of the dividend payout. Dividend Re-investment Option: Here the dividend accrued on mutual funds is automatically re-invested in purchasing additional units in open-ended funds. In most cases mutual funds offer the investor an option of collecting dividends or re-investing the same. Retirement Pension Option: Some schemes are linked with retirement pension. Individuals participate in these options for themselves, and corporates participate for their employees. Insurance Option: Certain Mutual Funds offer schemes that provide insurance cover to investors as an added benefit.

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Systematic Investment Plan (SIP): Here the investor is given the option of preparing a pre-determined number of post-dated cheques in favour of the fund. The investor is allotted units on a predetermined date specified in the offer document at the applicable NAV. Systematic Withdrawal Plan (SWP): As opposed to the Systematic Investment Plan, the Systematic Withdrawal Plan allows the investor the facility to withdraw a pre-determined amount / units from his fund at a pre-determined interval. The investor's units will be redeemed at the applicable NAV as on that day.

ANALYSIS OF MUTUAL FUNDS SCHEMES

53

To study the currently available schemes I have taken the fact sheets available with the AMCs. The fact sheet provides the historical data about the various schemes offered by the AMC, investment pattern, dividend history, ratings given, Fund Managers Credentials, etc. I have analyzed the schemes in the following three categories: Equity or Growth Scheme Balanced Scheme Income or Debt Scheme I have studied the schemes of the following AMCs Kotak Mutual Fund SBI Mutual Fund Franklin Templeton India Mutual Fund Principal Mutual fund

Basis for Analysis

Net Asset Value (NAV) is the best parameter on which the performance of a mutual fund can be studied. We have studied the performance of the NAV based on the compounded annual return of the Scheme in terms of appreciation of NAV, dividend and bonus issues. WE have compared the Annual returns of various schemes to get an idea about their relative standings.

VALUATION OF MUTUAL FUND

The net asset value of the Fund is the cumulative market value of the assets Fund net of its liabilities. In other words, if the Fund is dissolved or liquidated, by selling off all the assets in the Fund, this is the amount that the shareholders would collectively own. This gives rise to the concept of net asset value per unit, which is the value, represented by the ownership of one unit in the Fund. It is calculated simply by dividing the net asset value of the Fund by the number of units. However, most people refer loosely to the NAV per unit as NAV, ignoring the per unit. Calculation of NAV The most important part of the calculation is the valuation of the assets owned by the Fund. Once it is 54

calculated, the NAV is simply the net value of assets divided by the number of units outstanding. The detailed methodology for the calculation of the net asset value is given below. The net asset value is the actual value of a unit on any business day. NAV is the barometer of the performance of the scheme. The net asset value is the market value of the assets of the scheme minus its liabilities and expenses. The per unit NAV is the net asset value of the scheme divided by the number of the units outstanding on the valuation date. Equity or Growth Scheme These schemes, also commonly called Growth Schemes, seek to invest a majority of their funds in equities and a small portion in money market instruments. Such schemes have the potential to deliver superior returns over the long term. However, because they invest in equities, these schemes are exposed to fluctuations in value especially in the short term. In this equity or growth scheme segment I selected the following schemes in the selected AMCs

Balanced Scheme
The aim of Balanced Funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. This proportion affects the risks and the returns associated with the balanced fund - in case equities are allocated a higher proportion, investors would be exposed to risks similar to that of the equity market. Balanced funds with equal allocation to equities and fixed income securities are ideal for investors looking for a combination of income and moderate growth.

In this balanced fund scheme segment I selected the following schemes in the selected AMCs

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SBI Magnum Balance Fund has not been given any rating by CRISIL but it has been performing well. The investments of the Funds are well diversified in both Equity and Debt. The total Equity Holdings as on April 30th stands at 67.77% of the total assets. It has out performed CRISIL Balanced Fund Index by 45.38% for the 52 weeks period. Principal Balanced Fund has ranked CP3 by CRISAL, which means average in the open-ended balanced Fund category and ranks within the top 70% of the 19 schemes in this category. It has invested 67% in Equity and about 16% in Government Securities. In Equity it invested primarily in Pharmaceuticals, Construction Materials, Automobiles and banks.

Franklin Templeton India Balanced Fund invested about 70% of its assets in Equity and 75% in Debts. The recent additions to its portfolio are Reliance Industries, Asian paints and BPCL. It invests primarily in IT consulting, auto parts equipment, Banks, Tele Electrical industrial conglomerates. It invested mainly in the AAA rated Debts. Kotak Balance Fund has invested close to 70% in Equity and about 30% in Debt instruments and Short Term Deposits. The Fund has a well-diversified portfolio of equity with prime investments in BHEL, Siemens EID parry, Bulrampur Chini and SBI. In the debt Instruments it has invested in Railway Bonds and 2003 maturing Government Stock. SBI Magnum Income Fund is performing very well right from the inception with generous payment of dividends has been assigned AAA rating by CRISIL. The Fund invests about 90% in AAA rated securities and more than 60% of its investments have a maturity ranging between 3 to 10 years. I has come with bonuses in Jan 2003 1:3 and September 2003 1:10. However, it under perform vis--vis CRISIL Comp. Bond Fund index by 0.14.

56

Principal Income Fund has ranked CP3 by CRISAL, which means average in the open-ended debt category and ranks within the top 70% of the 21 schemes in this category. The investments have average maturity of 7.3 years with more than 50% investments having a maturity of above 7 years. It has invested close to 50% in Government Securities, above 40% in NCD/Deep Discount Bonds. Franklin Templeton India Income Fund has most of the investments in low risk AAA and sovereign securities. Above 45% of the investments are in Gilt, 25% in PSU/PFI bonds and 24% in corporate Debts. The average maturity of this scheme is at 4.87 years. The performance of the Fund is inline with CRISIL Composite Bond Fund.

57

Analysis of mutual funds in liquid Schemes

Mutual Funds in Liquid Schemes

No. of Mutual Funds in India Invested money Through Mutual Funds in Liquid Schemes

30 105886.4 cr.

58

Mutual Funds of Liquid Schemes in Different Range

59

0 1000 cr.

1000 5000 cr.

5000 10,000 cr. IDFC Cash Fund TATA Liquid Fund - RIP

10,000 15,000 cr. UTI Liquid

HSBC Cash Fund Institutional Growth ING Liquid Fund - IP Growth JM M M Fund Super Plan Growth Mirae Asset Liquid Fund Institutional Quantum Liquid Fund Sahara Liquid Fund - Fixed Pricing Option Growth SBI Premier Liquid Fund Institutional Growth Bharti AXA Liquid Fund Institutional Growth AIG India Liquid Fund Institutional Growth DBS Chola Liquid Fund Institutional Plus - Growth Edelweiss Liquid Fund Institutional Growth Fidelity Cash Fund Institutional Growth Taurus Liquid Fund Institutional Plan - Growth

Kotak Liquid

DWS Liq Super IP

HDFC Liquid

Sundaram Liquid Canara Liquid

Reliance Liquid Fund Treasury Plan -

Principal Liquid Baroda Pioneer Liquid Fund Growth Canara Robeco Liquid Institutional Plan - Growth Religare Liquid Fund Institutional Growth Fortis Money Plus Fund Institutional Plan - Growth Templeton India Treasury Mgt. A/c Liquid Plan Growth -

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In the range of 15000 20000 cr.

LIC Liquid ICICI Prudential Liquid Plan

So,

Funds having Rs.5,000 cr. & above Corpus

UTI liquid LIC Liquid HDFC Liquid IDFC Cash Fund TATA Liquid Fund RIP ICICI Prudential Liquid Plan Reliance Liquid Fund - Treasury Plan

UTI LIQUID
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UTI mutual funds promoters are State Bank of India, Life Insurance Corporation of India, Punjab National Bank and Bank of Baroda, each holding 25% of the paid up capital.

Name of Holding
Allahabad Bank Canara Bank Corporation Bank Axis Bank HDFC

% Net Assets
11.26 6.43 5.47 5.12 4.64

Top 3 Instruments
Certificate of Deposit Commercial Paper Short Term Deposit

% Net Asset
45.32 24.04 13.37

The above table shows that 33% net assets are under 5 holdings & rest of the corpus is under more than 50 companies. Main share of total corpus are invested in banking sector. This shows that the main risk is on these 5 companies. Acc. to 2nd table around half the amount are under certificate of deposit. So, this shows that there is less risk with good returns.

Rating Allocation
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Rating
P1+ A1+ Term Deposits Net Current Assets PR1+

% Of Asset
32.29 21.75 12.46 11.62 5.45

This shows that P1+ holding is around 1/3 % of assets. So, P1+ means top ratings in short term time period i.e. within 1 year.

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LIC Liquid

Japan's Nomura is set to take a 35 percent stake in LIC Mutual Fund. State-owned Life Insurance Corp (LIC), has already approved to induct Nomura as a partner. Rest is owned by LIC.

Name of Holding
Central Bank of India Ranbaxy Holding Co. Reliance Capital Punjab National Bank Religare Finvest

% Net Assets
6.55 6.55 5.53 5.24 3.81

Top 3 Instruments
Commercial Paper Cash/Call/Net Receivables Bank Deposit

% Net Asset
53.37 22.02 12.93

The above table shows that 28% net assets are under 5 holdings & rest of the corpus is under more than 50 companies. Main share of total corpus are invested in banking sector. This shows that the main risk is on these 5 companies. Acc. to 2nd table around half the amount are under Commercial Paper. So, this shows that there is more risk with returns.

Rating Allocation
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Rating A1+ Cash & Other Assets P1+ Bank Deposits PR1+

% Of Asset 27.45 22.02 14.39 12.93 9.87

This shows that A1+ holding is around 1/3 % of assets & 1/5 of cash & other Assets. So, A1+ means top ratings in very short term time period i.e. within 6 months & 1/5 cash this shows this mutual fund can afford to give cash if some investors want to sell their mutual funds.

HDFC Liquid
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Housing Development Finance Corporation Limited & Standard Life Investments Limited has acquired 60% & 40% resp. in HDFC mutual fund.

Name of Holding
ICICI Bank Allahabad Bank 5.48% G O I 2009 UCO Bank Union Bank of India

% Net Assets
4.22 3.95 3.82 2.99 2.85

Top 3 Instruments
Certificate of Deposit Cash/Current Assets Commercial Paper

% Net Asset
40.82 36.78 8.46

The above table shows that 18% net assets are under 5 holdings & rest of the corpus is under more than 70 companies. Main share of total corpus are invested in banking sector. This shows that the main risk is on these 5 companies. Acc. to 2nd table around half the amount are under Certificate of Deposit & cash is 37% which is a lot than required. Some of 37% money can be further invested by mutual funds to get more return .So, this shows that there is more risk with returns.

Rating Allocation
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Rating P1+ Cash & Other Assets A1+ F1+ P1+(SO)

% Of Asset 30.84 26.68 13.83 6.60 4.27

This shows that P1+ holding is around 1/3 % of assets & more than 1/5 of cash & other Assets. So, P1+ means top ratings in short term time period i.e. within 1 year & 1/5 cash this shows this mutual fund can afford to give cash if some investors want to sell their mutual funds but they can invest some more part of 26% to generate more funds.

IDFC Cash Fund

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IDFCs shareholders included the Government of India - 20%, foreign investors (including IFC, CDC, Morgan Stanley, and Citigroup among others) - 49% and public / others 31%.

Name of Holding
ICICI Bank Reserve Bank of India91D12/06/2009 5.48% G O I 12/0 6/2009 National Bank Agr. Rur. Devp Canara Bank

% Net Assets
8.10 7.99 7.45

Top 3 Instruments
Certificate of Deposit Commercial Paper Treasury Bills

% Net Asset
58.68 11.47 10.78

7.39 6.51

The above table shows that 37% net assets are under 5 holdings & rest of the corpus is under more than 60 companies. Main share of total corpus are invested in banking sector& govt. securities. This shows that there is less risk as % of govt. securities is more. Acc. to 2nd table more than half the amount is under Certificate of Deposit. So, this shows that there is less risk with returns.

Rating Allocation
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Rating P1+ A1+ Sovereign Unrated Collateral Borrowing & Lending Obligation

% Of Asset 45.19 19.27 18.23 6.51 3.58

This shows that P1+ holding is around 1/2 % of assets So, P1+ means top ratings in short term time period i.e. within 1 year. Acc. to this rating of this mutual fund is good.

TATA Liquid Fund RIP

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1) Tata Investment Corporation Limited and Tata Sons Limited are providing the necessary sponsorship for this mutual fund.

2) Tata Sons Limited is the major shareholder in the mutual fund. The investment management segment of Tata Mutual Fund is taken care of by Tata Asset Management LTD.

Name of Holding
Allahabad Bank ICICI Bank ICICI Securities Primary Dealer HSBC Reliance Petroleum

% Net Assets
5.45 5.20 5.08 4.18 4.00 3.69

Top 3 Instruments
Certificate of Deposit Cash Commercial Paper

% Net Asset
43.82 27.89 14.50

The above table shows that 27% net assets are under 5 holdings & rest of the corpus is under more than 60 companies. Main share of total corpus are invested in banking sector. Acc. to 2nd table around half the amount is under Certificate of Deposit. So, this shows that there is less risk with returns.

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Rating Allocation

Rating Cash & Other Assets A1+ P1+ F1+ AAA

% Of Asset 30.03 23.61 20.02 10.22 7.24

This shows that A1+ holding is around 1/5 % of assets & cash is around 1/3%. So, A1+ means top ratings in very short term time period i.e. within 6 months .Acc. to this rating of this mutual fund is good but can reduce the % is cash & that amount can invest further.

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ICICI Prudential Liquid Plan

ICICI Prudential Asset Management Company Ltd. is the joint venture between ICICI Bank, a well-known and trusted name in financial services in India and Prudential Plc, one of UKs largest players in the financial services sectors.

Name of Holding
Reserve Bank of India 91-D 07/08/2009 Punjab National Bank 5.48% G O I 2009 Axis Bank IDBI Bank

% Net Assets
6.28 5.98 5.86 4.64 3.93

Top 3 Instruments
Certificate of Deposit Cash/Call/Repos/ CBLO Commercial Paper

% Net Asset
42.40 14.27 12.65

The above table shows that 27% net assets are under 5 holdings & rest of the corpus is under more than 65 companies. Main share of total corpus are invested in banking sector& govt. securities. This shows that there is less risk as % of govt. securities is more. Acc. to 2nd table around half the amount is under Certificate of Deposit. So, this shows that there is less risk with returns.

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Rating Allocation

Rating P1+ Sovereign Call Money/Reverse Repos/CBLO A1+ Other Current Assets

% Of Asset 38.64 18.32 15.59 11.49 4.00

This shows that P1+ holding is more than 1/3 % of assets. So, P1+ means top ratings in short term time period i.e. within 1 year.

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Reliance Liquid Fund - Treasury Plan

Reliance Anil Dhirubhai Ambani group-controlled Reliance Mutual Fund

Name of Holding
Syndicate Bank Canara Bank HDFC Punjab National Bank Axis Bank

% Net Assets
8.82 6.10 5.87 4.52 3.44

Top 3 Instruments
Certificate of Deposit Cash/Call/Rep os/CBLO Non Convertible Debenture

% Net Asset
36.55 32.90 9.46

The above table shows that 29% net assets are under 5 holdings & rest of the corpus is under more than 65 companies. Main share of total corpus

are invested in banking sector. Acc. to 2nd table more than 1/3% amount is under Certificate of Deposit. So, this shows that there is less risk with returns.

Rating Allocation

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Rating Cash & Other Assets P1+ PR1+ AAA

% Of Asset 22.91 22.84 14.37 12.67

This shows that P1+ AA+ 5.38 holding is around 1/5 % of assets & cash is around 1/5. So, P1+ means top ratings in short term time period i.e. within 1 year.

To Judge mutual funds in liquid schemes :

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Mean Return

Mean returns attempt to quantify the relationship between the risk of a portfolio of securities and its return. It is the mean, or expected return that investors try to maximize at each level of risk.

Asset size

Asset size can be defined as the overall market value of the securities in a portfolio of mutual fund. This asset size is normally used to explain the size of the fund.

Volatility

The relative rate at which the price of a security moves up and down.

Volatility is found by calculating the annualized standard deviation of daily change in price. If the price of a stock moves up and down rapidly over short time periods, it has high volatility. If the price almost never changes, it has low volatility.

Average Maturity

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 Average time to maturity of bonds, instruments, and other fixed-term investments in a Mutual Fund portfolio. The shorter the average maturity, the more sensitive the portfolio is to market interest rate changes.

Asset quality

Asset quality refers to the degree of financial strength and risk in a bank's assets, typically loans and investments. A comprehensive evaluation of asset quality is one of the most important components in assessing the current condition and future viability of the bank.

Liquidity

The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity. Assets that can by easily bought or sold, are known as liquid assets. The ability to convert an asset to cash quickly.

Ratings given after analyzing the 7 selected mutual funds in liquid schemes

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Mutual funds in liquid schemes Uti Liquid LIC Liquid HDFC Liquid IDFC Cash Fund Tata Liquid Fund - RIP ICICI Prudential Liquid Plan Reliance Liquid Fund Treasury Plan

Asset size 10430 15441 10630 8741 6215.0 1 16755. 11

Mean Return in may 09 < 5% < 5.50% 5.40% < 5% 5.65%

liquidity 11.64% 36.66% 26.68% 0.15% 30.03%

Asset Quality(no. Volitility of com. In (st. Average portfolio) deviation) Maturity 60 75 80 80 45 0.15 0.18 0.18 0.22 0.19 0.21 0.28 0.25 0.35 0.12

Rating 4 5 3 7 2

7.50%

15.59%

80

0.20

0.35

5702.5 9

5.20%

22.91%

50

0.16

0.25

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If we have to invest Rs.100 cr. in mutual funds in liquid schemes. Then, we should invest among the 7 mutual funds which are mentioned earlier.

Money invested should be divided among those 7 funds in such proportion that Lower rank should give more weight age than Higher rank funds.

E.g.:ICICI Prudential Liquid Plan TATA Liquid Fund RIP HDFC Liquid UTI Liquid LIC Liquid Reliance Liquid Fund- Treasury Plan IDFC Cash Fund 25% 20% 15% 15% 10% 10% 5%

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Schedule to consolidated balance Sheet of year 2007-08

SCHEDULE- " 6 " INVESTMENTS

Sr. No. A 1 2 3 4 5 Total ( A) B 1 2 3 4 5 Total ( B) A 1 2 3 4 5 Total ( A) B 1

PARTICULARS Mutual funds /Debentures Reliance Liquidity Fund Reliance Liquid Plus Fund DBS Floating Rate Fund LIC Liquid Fund 8.00% NCD JSW Steel Limited Equity Share Fully Paid Up Quoted Transport corporation of India Limited Bhartiya International Ltd. Hotel Leela Ventures Ltd. Central Bank of India Mundra Port ltd. Long Term Investments Govt./Semi Govt. Securities Non trade 12.40% Government of India Stocks 13.05% Government of India Stocks 8.40% Transmission Corp. of A.P. Ltd. 7.50% Bank of India 7.64% KSFC 2016 Equity Share Fully Paid Up Unquoted Jab Resources Ltd.

NOS.

Face Value(R s.) 10.00 1,000.00 22.97

Amount (Rs. In Lakhs) 500.00 505.00 44.21 1,049.21

4,112,789 46,195 266,594

114,609 90,000 7,247 1471

10.00 2.00 10.00 10.00

65.50 36.13 6.30 6.47 114.40

10 4 10

1,000,000 1,000,000 1,000,000

41.14 103.40 40.00 97.71 283.42

3,333,067

15 Cents

179.59 80

Total (B) C 1 2 3 4 5 6 Total (C)

179.59 Equity Shares Fully paid Up of Subsidiary Company Jindal Stainless Steelway ltd. Jindal Architecture Ltd. Austenitic Creations Pvt. Ltd. Jindal Stainless FZE Wholly owned subsidiary Jindal Stainless UK Ltd. Wholly owned subsidiary Green Delhi BQS Pvt. Ltd. Grand Total

14,061,667 4,100,100 4,203,900 6 100,000 51,000

10.00 10.00 10.00 1000000 AED 1 GBP 10.00

2581.25 410.01 420.39 723.80 77.20 5.10 7,702.10 9,328.72

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INVESTMENTS IN 2007-08

DETAILS OF INVESTMENTS

Sr. No. A 1 2 3 4 5 6 7 8 9 10 11 12 13 14

PARTICULARS Mutual Funds ABN AMRO Cash Fund Institutional Growth ABN AMRO Money Plus Fund Growth Birla Liquid Fund Growth DBS Chola Short Term Rate Fund Deutsche Insta Cash Plan Fund-IP (G) FIDELITY LIQUID FUND- SUPER INST.GR FIDELITY LIQUID FUND- CASH FUND HDFC Mutual Fund PRINCIPAL Cash Mgt. Fund LIC MF-Liquid FundGrowth Fund PRINCIPAL MUTUAL FUND Reliance liquid Fund UTI liquid Cash Plan Institutional UTI liquid Fund- Growth Plan

Purchase Value 6,110.00 4,211.00 7,580.00 5,523.00 12,939.00 1,770.00 8,205.00 2,000.00 15,330..00 89,824.00 7,330.00 20,494.00 8,170.00 25,681.00

Sale Value 6,114.00 4,233.00 7,590.00 5,530.00 12,954.00 1,773.00 8,217.00 2,001.00 15,337.00 89,965.00 7,346.00 20,530.00 12,802.00 21,097.00

NOS. of Units 61,020,832.57 36,568,398.98 61,506,329.19 42,962,547.64 108,203,518.00 17,703,657.47 77,310,278.43 12,702,122.53 128,112,533.14 642,164,674.70 62,225,840.00 171,844,001.78 6,732,358.74 20,003,295.11

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Sr. No. B 1 2 3 4 5 6

PARTICULARS Bonds 10.35% HDFC 2017 7.77% UP SDL 8.33% GOI 2036 10.50% GOI 2014 10.65% UBI 2022 8.95% ICICI 2021

Purchase Value 213 41 68 10.00 11 -

Sale Value 213 41 68 10.00 11 -

NO> of Units 200,000 42,000 69,000 9,000 10,000 -

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Conclusion
SUGGESTIONS
Four sequential steps will enable investor to decide effectively. 1. Divide the spectrum of Mutual Funds depending on major asset classes invested in. Presently there are only two. Equity Funds investing in stocks. Debt Funds investing in interest paying securities issued by government, semi-government bodies, public sector units and corporates.

2. a) Categorizing equities Diversified invest in large capitalized stocks belonging to multiple sectors. Sectorial Invest in specific sectors like technology, FMCG, Pharma, etc. b) Categorized Debt. Gilt Invest only in government securities, long maturity securities with average of 9 to 13 years, very sensitive to interest rate movement. Medium Term Debt (Income Funds) Invest in corporate debt, government securities and PSU bonds. Average maturity is 5 to 7 years. Short Term Debt Average maturity is 1 year. Interest rate sensitivity is very low with steady returns. Liquid Invest in money market, other short term paper, and cash. Highly liquid. Average maturity is three months.

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3. Review Categories
Diversified equity has done very well while sectorial categories have fared poorly in Indian market. Index Funds have delivered much less compared to actively managed Funds. Gilt and Income Funds have performed very well during the last three years. They perform best in a falling interest environment. Since interest rates are now much lower, short term Funds are preferable.

4. Specific scheme selection

Rankings are based on criteria including past performance, risk and resilience in unfavorable conditions, stability and investment style of Fund management, cost and service levels. Some recommended schemes are: Diversified equity Zurich Equity, Franklin India Bluechip, Sundaram Growth. These Funds show good resilience giving positive results. Gilt Funds DSP Merrill Lynch, Tata GSF, HDFC Gilt have done well. Income Fund HDFC, Alliance, Escorts and Zurich are top performers Short Term Funds Pru ICICI, Franklin Templeton are recommended Within debt class, presently more is allocated towards short term Funds, because of low prevailing interest rates. However if interest rates go up investor can allocate more to income Funds or gilt Funds.

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Suggestions and Recommendations

The most vital problem spotted is of ignorance. Investors should be made aware of the

benefits. Nobody will invest until and unless he is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing.

Mutual funds offer a lot of benefit which no other single option could offer. But most of

the people are not even aware of what actually a mutual fund is? They only see it as just another investment option. So the advisors should try to change their mindsets. The advisors should target for more and more young investors. Young investors as well as persons at the height of their career would like to go for advisors due to lack of expertise and time.

Mutual Fund Company needs to give the training of the Individual Financial Advisors

about the Fund/Scheme and its objective, because they are the main source to influence the investors.

Before making any investment Financial Advisors should first enquire about the

risk tolerance of the investors/customers, their need and time (how long they want to invest). By considering these three things they can take the customers into consideration.

off.

Younger people aged under 35 will be a key new customer group into the future, so

making greater efforts with younger customers who show some interest in investing should pay

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 quality.

Customers with graduate level education are easier to sell to and there is a large

untapped market there. To succeed however, advisors must provide sound advice and high

Systematic Investment Plan (SIP) is one the innovative products launched by Assets

Management companies very recently in the industry. SIP is easy for monthly salaried person as it provides the facility of do the investment in EMI. Though most of the prospects and potential investors are not aware about the SIP. There is a large scope for the companies to tap the salaried persons.

BIBLIOGRAPHY

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NEWS PAPERS OUTLOOK MONEY MUTUAL FUND HAND BOOK FACT SHEET AND STATEMENT WWW.MONEYCONTROL.COM WWW.AMFIINDIA.COM WWW.ONLINERESEARCHONLINE.COM WWW.MUTUALFUNDINDIA.COM WWW.GOOGLE.COM WWW.CRISIL.COM

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