A SUMMER TRAINING REPORT ON

ANALYSIS OF CUSTOMER VIEWS OF

STANDARD CHARTERED MUTUAL FUNDS

SUBMITTED IN PARTIAL FULFILLMENT FOR THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION BBA (B&I) SESSION 2007-2010

UNDER THE GUIDANCE OF:

Faculty: Usha Nair, MAIMS Name of the student: Neha Garg
ROLLNO.- 0821471807 BATCH NO. BBA (B&I) 5TH SEMESTER MAHARAJA AGARSEN INSTITUTE OF MANAGEMENT STUDIES

AFFLIATED TO G.G.S.I.P.UNIVERSITY, PSP AREA, SECTOR22 ROHINI DELIHI-110085

DECLARATION

I hereby declare that the project work entitled Standard Chartered is an authentic work carried out by me and under the guidance of Dr. Usha Naier for the partial fulfillment of the degree of bachelor of business administration and it has not been submitted anywhere else for the award of any degree of diploma.

NEHA GARG

ACKNOWLEDGEMENT

The present work is an effort to throw some light on Standard Chartered Mutual Fund. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people.

With deep sense of gratitude I acknowledged the encouragement and guidance received by my organizational guide Mr. P.K KAPOOR (BRANCH MANAGER STANDARD CHARTERED BANK).

I convey my heartful affection to all those people who helped and supported me during the course, for completion of my Project Report.

NEHA GARG

EXECUTIVE SUMMARY
Liberalization and globalization, along with the expanded distribution of the wealth among the middle class has evoked an interest of the common man into the intricacies of capital market. Capital Market, once perceived to be a market of only for the elite and speculators, but now also attracted the attention of the common man. The stockbrokers were always influential and affluent, but a lot of transformation has taken place in his image from pawnbrokers to a man of financial acumen. The common man has now started learning the vocabulary of the capital market with terms like bull and bear explored upon in newest dimensions. But the turbulence of the stock market has made the common investor apprehensive that is why the common investor has remained away from the industrial securities markets. s 4

Mutual funds, Act as a financial intermediary between the common investors and the capital market. While on one hand they ensures a smooth returns on the investment of the investor and on the other hand they give them a much-desired security. Standard Chartered AMC Ltd. is one of the most reputed mutual funds in INDIA in private sector. It was my privilege to have my research project at Standard Chartered (Mutual Fund) AMC Ltd. and have got the opportunity to work on Concept of mutual fund with special reference to Standard Chartered Mutual Fund. This project made me aware about the no. of interesting facts such as a very low awareness level regarding Mutual fund amongst the people and so on.

TABLE OF CONTENTS
1. INTRODUCTION Industry overview Mutual fund: relationship amongst the entities involved Asset management in standard chartered mutual fund Types of bonds in standard chartered investment services Organisation of a mutual fund Grind lays super saver income fund - investment plan Concept of mutual fund Advantages of mutual funds Investment products available to Indian investors Comparison of investment products The investor perspective Fund vs others Current outlook Swot analysis

2. COMPANY PROFILE OF STANDARD CHARTERED Profile of Standard Chartered Mutual Funds 3. OBJECTIVES AND METHODOLOGY a. b. c. d. e. Research methodology and Limitations Significance Managerial usefulness of the study Objectives Scope of the study 4. DATA ANALYSIS a. Analysis And Interpretation Of Data

5. CONCLUSION

6. FINDINGS AND RECOMENDATION a. Result Finding

7. ANNEXURE

a.

QUESTIONNAIRE

8. BIBLIOGRAPHY

INTRODUCTION
INDUSTRY OVERVIEW
Investment management, also known as asset management, is pretty much what it sounds like: a client gives money to an asset manager, who then invests it to meet the client's objectives. The potential clients of an asset manager can vary widely. Asset managers who work for mutual funds, for example, manage money for retail clients, while asset managers at investment banks often invest money for institutional investors like companies or municipalities (often for pools of money like pension funds.) Asset managers can also work for hedge funds, which combine outside capital with capital contributed by the partners of the fund, and invest the money using complex and sometimes risky techniques, with the goal of receiving extraordinary gains.

ASSET MANAGEMENT INDUSTRY-CURRENT SCENARIO

Today's asset management industry is bigger, more dynamic and more competitive than ever. Market leaders: Achieve superior fund performance Control over the operating cost Manage the risk of new market, product and services Leverage the benefits of new technology Build and extend profitable customer relationships

MUTUALFUND:

RELATIONSHIP AMONGST THE

ENTITIES INVOLVED
SPONSOR REGISTRAR

TRUSTEE COMPANY

SETS UP

MAINTIAN RECORDS OF AND SERVICES OF

APPOINTS

ACT AS TRUSTEE TO THE UNITHOLDERS OF

MUTUAL FUND (AS A TRUST)

SUBSCRIBE THE UNITS OF

INVESTOR S

ASSET MANAFEMEN T COMPANY s

MANGES THE INVESTMENT OF

SAFE KEEPS THE ASSETS OF

CUSTODIAN

ASSET MANAGEMENT IN STANDARD CHARTERED MUTUAL FUND

Standard Chartered Mutual Fund is well-established fund house and is sponsored by the Standard Chartered Group. Standard Chartered Mutual Fund launched its first scheme Grindlays Super Saver Income Fund in the year July 2007. Since then it focused on debt for 5 years and launched several innovative products that went to become bourgeoning categories in the Indian mutual fund industry. Some of these were The Dynamic Bond Fund, The Short term Fund and the Medium Term Fund. It also pioneered several service initiatives that helped increase transactional ease. It was the first mutual fund to initiate Across the counter redemptions for all classes of investors in liquid funds, Next day redemptions for non-liquid funds and lately One Call Free number 1600226622 accessible across 153 cities Phone transacts service wherein investors can redeem without having any Personal Identification Numbers.

Standard Chartered Mutual Fund today has offices in 19 cities and currently manages assets in excess of Rs 8000 crores. Presenting Standard Chartered Classic Equity Fund - a Fund that seeks to stand by you through the test of time. Standard Chartered Classic Equity Fund is a truly diversified fund that would not be limited by diktats of investing in either a particular section of the market or a particular style of investing. It would attempt to retain its freshness and stay contemporary with an unrestricted investment style (within predefined and controlled boundaries) and thus deliver returns that are truly consistent and relevant. With its broad idea generation theme, it is ideal for investors with a 1 to 10 year time frame.

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TYPES OF BONDS IN STANDARD CHARTERED INVESTMENT SERVICES

Types of Bonds Money Market Bonds The bonds of which 100% funds are placed in money market instruments like deposits, SBI (Bank Indonesia Certificates), and obligation with maturity date less than 1 year. Fixed Gain Bonds The bonds of which 80% funds are placed in the obligation, normally with maturity date of 3 years and over. Mixed Bonds The bonds being money market instruments, obligations and shares with flexible composition according to your financial requirements. Share Bonds Bonds of which minimum 80% of funds are placed in shares

Aims of Investments

Fund protection and liquidity Suitable for short-term investment

Gain higher interests from the saved deposits Suitable for mid-term investment, minimum 3 years

Increasing funds Suitable for mid and long term investment

Increasing funds Suitable for long term investment, minimum 6 years

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ORGANISATION OF A MUTUAL FUND OF MUTUAL FUND IN ASSET MANAGEMENT INDUSTRY

Entities involved under the organizational set up of a mutual fund are as follows:

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ORGANISATION OF A MUTUAL FUND

STRUCTURE OF INDIAN SECURITY MARKET

13

EVOLUTION OF MUTUAL FUND INDUSTRY IN INDIADIFFERENT PHASES

The mutual fund industry in India started in 1963 with the establishment of Unit Trust of India, at the initiative of the RBI and the Government of India. The objective then was to attract small investors and introduce them to market investments. Since then., the evolution of mutual funds in India can be broadly divided into four distinct phases: THE FIRST PHASE UT! RULES THE ROOST (1964-87) In 1963, Unit Trust of India was established by an Act of Parliament and accorded a monopoly status. The first and still one of the largest schemes launched by UT! was the Unit Scheme 1964. Over the years, US-64 attracted the largest number of investors in a single investment scheme. Later in 1 970s and 80s, UTI started innovating and offering different schemes to suit the needs of different classes of investors. Unit Linked Insurance Plan (ULIP) was launched in 1971. Six new schemes were introduced between 1981 and 1984. During 1984-87, new schemes like Childrens Gift Growth Fund (1986) and Mastershare (1987) were launched. Mastershare can be termed as the first diversified equity investment scheme in India. The first Indian offshore fund, India Fund, was launched in August 1986. During 1990s, UTI catered to the demand for income-oriented schemes by launching Monthly Income Schemes, a somewhat unusual mutual fund product offering assured return&.

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The Second Phase Entity of Public Sector Funds (2006-2007) 1987 marked the entry of non-UTI, Public Sector mutual funds. Many public sector banks and financial institutions were allowed to establish mutual funds. The State Bank of India established the first non-UTI mutual fund SBI Mutual Fund in November 1987. This was followed by Canbank Mutual Fund (launched in December, 1987), LIC Mutual Fund (1989), and Indian Bank Mutual Fund (1990) and later followed by Bank of India Mutual Fund, GIC Mutual Fund and PNB Mutual Fund. During the second phase, investors started shifting away from bank deposits to mutual funds, as they started allocating larger part of their financial assets and savings (5.2% in 1992, 3.1% in 1988) to fund investments.

THE THIRD PHASE EMERGENCE OF PRIVATE FUNDS (1993-1996)

A new era in the Indian mutual fund industry began with the permission granted for the entry of private sector funds in 1993, giving the Indian investors a broader choice of fund families and increasing competition for the existing public sector funds. These private funds brought with them the latest product innovations, investment management techniques and investor servicing technology that make the Indian mutual fund industry today a vibrant and growing financial intermediary. Investors in India now clearly see the benefits of investing through mutual funds and have started becoming selective.

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THE FOURTH PHASE SEBI REGULATIONS FOR MUTUAL FUNDS (1996 ONWARDS)
Finally, most investors small or large have started shifting towards mutual funds as opposed to banks or direct market investments. More investor friendly regulatory measures have been taken both by SEBI to protect the investor and by the Government to enhance investors returns through tax benefits, with SEBI (Mutual Fund) Regulations, 1996 and in 1999 Union Government Budget took a big step in exempting all mutual fund dividends from income tax in the hands of investors.

STANDARD CHARTERED MUTUAL FUND SERVICES

Standard Chartered Mutual Fund is well-established fund house and is sponsored by the Standard Chartered Group. Standard Chartered Mutual Fund launched its first scheme Grindlays Super Saver Income Fund in the year July 2006. Since then it focused on debt for 5 years and launched several innovative products that went to become bourgeoning categories in the Indian mutual fund industry. Some of these were The Dynamic Bond Fund, the Short term Fund and the Medium Term Fund. It also pioneered several service initiatives that helped increase transactional ease. It was the first mutual fund to initiate Across the counter redemptions for all classes of investors in liquid funds, Next day redemptions for non-liquid funds and lately One Call Free number 1600226622 accessible across 153 cities Phone transact service wherein investors can redeem without having any Personal Identification Numbers. Standard Chartered Mutual Fund today has offices in 19 cities and currently manages assets in excess of Rs 8000 crores.

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GRIND LAYS SUPER SAVER INCOME FUND - INVESTMENT PLAN

SCHEME OUTLINE
The primary investment objective of the scheme is to seek to generate stable returns with a low risk strategy by creating a portfolio that is invested in good quality fixed income and money market securities.

INVESTMENT OBJECTIVE
The primary investment objective of the scheme is to seek to generate stable returns by investing in good quality fixed income and money market securities. Ideal investment horizon The scheme is designed for investors seeking a balance of stable returns and risk over a tenor of 4-12 months.

PERFORMANCE
NAV values as at October 20, 2006 NAV Rs. / Unit* Rs. / Unit* Rs. / Unit* Growth Dividend Investment objective 10.9051 10.2275 0 0 0 0 Plan B Plan C Periodicity Plan A

Grindlays Government Securities Fund -Short Term

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GRINDLAYS FLOATING RATE FUND - LONG TERM

The primary objective of the scheme is to generate stable returns with a low risk strategy by creating a portfolio that is substantially invested in good quality floating rate debt or money market instruments, fixed rate debt or money market instruments swapped for floating returns and fixed rate debt and money market instruments. The objective of the Grindlays Floating Rate Fund - Long Term Plan is to deliver optimal returns by positioning itself on the longer end of the yield curve. Given that the yield curve is positively sloping and is likely to steepen further given the general undertone in the market, the GFRF - LT will deliver on two counts: a) b) Higher accrual income. Capturing basis (interest rate) movement through steepening of the curve without taking unhedged mark-to-market positions.

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EMERGENCE OF MUTUAL FUND

A mutual fund is simply 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 pooled money into specific securities (usually stocks or bonds). When you invest in a mutual fund, you are buying shares (or portions) of the mutual fund and become a shareholder of the fund. Mutual funds are one of the best investments ever created because they are very cost efficient and very easy to invest in (you don't have to figure out which stocks or bonds to buy). If you would like to know the history of mutual funds. 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.

DIVERSIFICATION
Diversification is the idea of spreading out your money across many different types of investments. When one investment is down another might be up. Choosing to diversify your investment holdings reduces your risk tremendously. The most basic level of diversification is to buy multiple stocks rather than just one stock. Mutual funds are set up to buy many stocks (even hundreds or thousands). Beyond that, you can diversify even more by purchasing different kinds of stocks, then adding bonds, then international, and so on. It could take you weeks to buy all these investments, but if you purchased a few mutual funds you could be done in a few hours because mutual funds automatically diversify in a predetermined category of investments (i.e. - growth companies, low-grade corporate bonds, international small companies). On the next page, I clearly explain how diversification works using a "Wheel of Fortune" concept.

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CONCEPT OF MUTUAL FUND

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

MUTUAL FUND OPERATION FLOW CHART

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FEATURES :1. Pooled Vehicle 2. Professional Management 3. Schemes, Options/ Plans 4. Units 5. Money in trust 6. SEBI Mutual Fund Regulations, 1996

ADVANTAGES OF MUTUAL FUNDS

The advantages of investing in a Mutual Fund are: Professional Management Convenient Administration Return Potential Low Costs Liquidity Transparency Flexibility Choice of schemes Tax benefits 1. PROFESSIONAL MANAGEMENT Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. You achieve this diversification through a Mutual Fund with far less money than you can do on your own. 2. CONVENIENT ADMINISTRATION Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries, delayed payments and unnecessary follow up with brokers and

21

companies. Mutual Funds save your time. 3. RETURN POTENTIAL Over a medium to long-term, mutual funds have the potential to provide a higher return as they invest in a diversified basket of selected securities. 4. LIQUIDITY In open-ended schemes, you can get your money back promptly at net asset value related prices from the Mutual Fund itself. With close-ended schemes, 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 prices which some close-ended and interval schemes offer you periodically. 5. TRANSPARENCY You get regular information on the value of your investment in addition to disclosure on the specific investments made by your scheme, the proportion invested in each class of assets and the fund manager's investment strategy and outlook. 6. FLEXIBILITY Through features such as regular investment plants, regular withdrawal plans and dividend reinvestment plans, you can systematically invest or withdraw funds according to your needs and convenience. 7. CHOICE OF SCHEMES Mutual Funds offers a family of schemes to suit your varying needs over a lifetime. You can choose from a variety of schemes: Open - Ended Schemes Close Ended Schemes Growth Schemes Income Schemes

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INVESTMENT PRODUCTS AVAIBALE TO INDIAN INVESTORS

The ranges of investment options available in India cover both physical assets and financial assets. Real estate and Gold are examples of physical assets. Traditionally, gold has been a favorite assets for many Indians. In the financial assets category, Indian investors have generally had guaranteed or fixed return products such as bank deposits, company deposits and government savings instruments such as Public Provident Fund, Indira Vikas Patra and National Savings Certificates. Financial assets also include capital market securities such as equities/preference shares, and bonds/debentures issued by companies or financial institutions, money market instruments such as, commercial papers or certificates of deposits. Indian investors can buy capital market instruments but dont have any direct access to money market instruments. Quite distinct from the above described investment instruments are the mutual fund units. Unlike capital market instruments, where the investor lends directly to the borrower / issuer of securities, mutual fund units represents indirect investments through an intermediary the fund. However, unlike the bank deposits of government savings instruments, where the capital protection and interest rates are guaranteed by the intermediary or the borrowers, investment in a mutual fund is not guaranteed for returns or capital.

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COMPARISON OF INVESTMENT PRODUCTS

RETURNS SAFETY Equity FI Bonds CorporateHigh Moderate Moderate Low High

VOLATILITY LIQUIDITY CONVENIENCE High Moderate High/ Low Moderate Low Low High Moderate Low Moderate Low High Moderate High Low Moderate High High Moderate Low Low High

Moderate Moderate Low High High High High High Low Low Low Low Moderate Moderate

Debentures Company Moderate FDs Bank Deposits PPF Life Insurance Gold Mutual Fund Low Moderate Low Moderate High

Real Estate High

Moderate High

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THE INVESTOR PERSPECTIVE: FUND VS OTHERS

INVESTMENT Equity FI Bonds (Long) Corporate Debentures(Long) Company FDs Bank Deposits PPF Life Insurance Gold Real Estate Mutual Fund OBJECTIVE Capital Appreciation Income Income Income Income Income Risk Cover Inflation Hedge Inflation Hedge Capital Growth,Income RISK TOLERANCE High Low H-M-Low H-M-Low Generally Low Low Low Low Low H-M-Low INVESTMENT HORIZON Long Term Medium Medium Medium All Terms Long Term Long Term Long Term Long Term All Terms

TYPES OF MUTUAL FUND SCHEMES

SCHEMES ACCORDING TO MATURITY PERIOD :A mutual fund scheme can be classified into open-ended scheme or close-ended scheme depending on its maturity period.

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OPEN-ENDED FUND/ SCHEME:

An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end schemes is liquidity.

CLOSE-ENDED FUND/ SCHEME:

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. 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 the units 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 i.e. either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.

SCHEMES ACCORDING TO INVESTMENT OBJECTIVES:A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows:

GROWTH / EQUITY ORIENTED SCHEME:

The aim of growth funds is to provide capital appreciation over the medium to longterm. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in

26

the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.

INCOME / DEBT ORIENTED SCHEME:

The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations.

BALANCED FUND:
The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.

MONEY MARKET OR LIQUID FUND:

These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc. Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.

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GILT FUND:
These funds invest exclusively in government securities. Government securities have no default risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes.

INDEX FUNDS:
Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc These schemes invest in the securities in the same weightage comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as "tracking error" in technical terms. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme. There are also exchange traded index funds launched by the mutual funds which are traded on the stock exchanges.

SPECIFIED 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.

TAX SAVING SCHEMES:These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act, 1961 as the Government offers tax incentives for investment in specified avenues. e.g. Equity Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also offer tax benefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growth opportunities and risks associated are like any equity-oriented scheme.

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THE ROLE OF SEBI

In the year 1992, Securities and Exchange Board of lndia (SEBI) Act was passed. The objectives of SEBi are -~ to protect the interest of investors in securities and to promote the development of and to regulate the securities market. As far as mutual funds are concerned, SEBI formulates policies and regulates the mutual funds to protect the interest of the investors. SEBI notified regulations for the mutual funds in 1993. Thereafter, mutual funds sponsored by private sector entities were allowed to enter the capital market. The regulations were fully revised in 1996 and have been amended thereafter from time to time. SEBI has also issued guidelines to the mutual funds from time to time to protect the interests of investors. All mutual funds whether promoted by public sector or private sector entities including those promoted by foreign entities are governed by the same set of Regulations. There is no distinction in regulatory requirements for these mutual funds and all are subject to monitoring and inspections by SEBI. The risks associated with the schemes launched by the mutual funds sponsored by these entities are of similar type.

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ENTITIES INVOLVED IN ORGANIZATION OF MUTUAL FUND

SPONSOR
Sponsor is defined under SEBI regulations as any person who, acting alone or in combination with another body corporate, establishes a mutual fund. The sponsor of a fund is akin to the promoter of a company as he gets the fund registered with SEBI. The sponsor forms a Trust and appoints a Board of Trustees. The sponsor also generally appoints an Asset Management Company as fund managers. The sponsor, either directly or acting through the Trustees, also appoints a Custodian to hold the fund assets. All these appointments are made in accordance with SEBI Regulations. As per the existing SEBI regulations, for a person to qualify as a sponsor, he must contribute at least 4004 of the net worth of the AMC and possess a sound financial track record over five years prior to registration.

TRUST
A mutual fund in India is constituted in the form of a Public Trust created under the Indian Trusts Act, 1882. The Fund Sponsor acts as the settler of the Trust, contributing to its initial capital and appoints a Trustee to hold the assets of the Trust for the benefit of the unit-holders, who are the beneficiaries of the Trust.

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CURRENT OUTLOOK
Indian households started allocating more of their savings to the capital markets in I 980s, with investments flowing into equity and debt instruments, besides the conventional mode of bank deposits. Until 1992, primary market investors were effectively assured of good returns as the issue price of the new equity shares was controlled and low. After introduction of free pricing of shares many investors who bought highly priced shares lost money and withdrew from the market altogether. Even those who continued as investors realized that the key to successful investing in the capital markets lay in building a diversified portfolio, which in turn required substantial capital. Besides, selecting securities with growth and income potential from the capital market involved careful research and monitoring of the market, which was not possible for all investors. While providing expertise in stock market investing, mutual funds allow investing in small amounts and yet holding a diversified portfolio to limit risk, thus providing the potential for income and growth that is associated with the debt and equity instruments. Mutual Funds serve as a link between the saving public and the capital markets as they mobilize savings from investors and bring them to bon~owers in the capital markets. Mutual funds have imparted much needed liquidity into the financial system and challenged the dominant role of banking and financial institutions in the capital markets. As has been discussed, mutual funds offer several benefits that are unmatched by other investment options. Owing to this, post liberalization, the industry has been growing at a rapid pace and has crossed Rs. 1,00,000 crore size in terms of its assets under management. However, due to the low key investor awareness, the inflow under the industry is yet to overtake the inflows in banks. Currently there are 34 Mutual Fund organizations in India managing over Rs. 1.17.000 crores.

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SWOT ANALYSIS
STRENGTHS
Standard Chartered MFs biggest strength is its pedigree. Standard Chartered Bank Ltd, which gives it a head start over other fund houses in terms of brand recognition and investor confidence

It has the privilege of being one of the most successful mutual funds operating in India .

It has one of the largest number of investors services centers and district Organizers which is in tune with its corporate philosophy of catering to rural as well as urban areas. Also such a good no of service centers helps to establish a wide distribution network. Standard Chartered MF boasts of a huge corpus under its management, the major reason for which is its link with Standard Chartered which is a main financial institution in India, a symbol for trust for Indians. Standard Chartered MF has been successful in creating a unique brand image and an identity for itself, which has lots to say .it has worked towards fulfilling its motto Think Investment Think Standard Chartered. Standard Chartered MF is today considered as one of the strongest brands synonyms with performance and reliability. .

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WEAKNESSES:

It has not been very aggressive in launching new, innovative and specialized to serve the different need despite its stature. Also it has historically lacked the marketing derive and acumen demonstrated by private sector mutual fund in garmenting sizeable in market shares in vary little time. Being a 100% subsidiary of one of the largest financial institution in India, Standard Chartered mf has been under constant pressure from different quarters, which at times has taken a tool on its smooth operation. Standard Chartered mf has been sluggish in aligning itself with the latest trends and practices in swiftly changing and involving industry. This has resulted in its loosing out many strategic advantages to the competition. Another major weakness of Standard Chartered MF has been lack of regular interaction with various intermediaries such as distribution houses and investment bankers. They play a major role in mobilization of funds from investors and as such, Standard Chartered MF needs to seriously take note of this weakness. Due to its lost focus in the past distributor had stopped taking interest in marketing Standard Chartered MF.

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OPPORTUNITIES:
The Indian mutual funds industry is still in a nascent stage and offers a wealth of opportunities for fund houses to capitalize upon. There is a huge market to be tapped and steps should be taken to inverse the proportion of people investing in Banks to mutual funds. Standard Chartered MF is in a unique position to build upon its brand image and penetrate the yet unexplored semi urban and rural market. Given the present outlook of the mutual funds industry in India, investors education holds the key to success. Here again, Standard Chartered MF can utilize its huge distribution network to promote investor awareness through various programmes and hence gain market share. A wave of consolidation has swept over the Indian mutual fund industry recently. Standard Chartered MF can also explore the option of taking over another AMC to boost its market presence It can potentially lead to higher operating margins, improved market share and high ROCE and RONW. Interaction with distributors has to improve vastly in order to tap significant opportunities on the front. Another significant opportunity could be in the form of targeting segments rather than market share. Standard Chartered mf can take advantage of its pedigree to secure a foothold in government - affiliated organization and institution. This segment presents a tremendous opportunity for Standard Chartered MF in the long term. Nowadays, investors are increasingly seeking a full range of services - portfolio management, risk minimization, return optimization, regular updates etc. - rather than just an investment avenue. Many other private sector fund houses have based their strategic advantages on this thrust . Standard Chartered MF should also adapt itself to gain maximum mileage from this opportunity.

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THREATS
Being a part of the mutual fund industry, Standard Chartered MF is wedded to market and credit risks. The Indian mutual fund industry is governed largely by SEBI, which at times is harsh with its taxation policies. There is also a high degree of correlation between mutual funds performance and the political scenario of the country as the market is based on sentiments.

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2. COMPANY PROFILE
STANDARD CHARTERED IN INDIA
The standard chartered bank opened its first overseas branch in India, at Calcutta (kolkata), on 12 April 1858. Eight years later the Calcutta agent described the banks credit locally as splendid & its business as flourishing, particularly the substantial turnover in rice bills with the leading Arab firms. When the chartered bank first established in India, Calcutta was the most important commercial city, & was the center of the jute & indigo trades. With the growth of the cotton trade & the opening of the Suez Canal in 1869, Bombay (Mumbai) took over from Calcutta as Indias main trade center. Today the banks branches & sub-branches in India are directed & administrated from Mumbai with kolkata remaining an important trading & banking center. Standard Chartered is the largest international banking group in India. Key businesses include consumer banking primarily credit cards, debit cards personal loans & wealth management & wholesale banking, where the bank specializes in the provision of the cash management, trade, finance, treasury, & custody services.

OVERVIEW
Standard Chartered is the world's leading emerging markets bank. It employs 30,000 people in over 500 offices in more than 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, United Kingdom and the Americas. The Bank serves both Consumer and Wholesale banking customers. Consumer Bank provides savings account, credit cards, personal loans, mortgages, deposit taking activity and wealth management services to individuals and medium sized businesses.

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Wholesale Bank provides services to multinational, regional and domestic corporate and institutional clients in trade finance, cash management, custody, lending, foreign exchange, and interest rate management and debt capital markets. With nearly 150 years in the emerging markets the Bank has unmatched knowledge and understanding of its customers in its markets. Standard Chartered recognizes its responsibilities lies to its staff and to the communities in which it operates. Present Contribution of Standard chartered India towards Standard chartered Group Worldwide is 9%. The vision of the Standard Chartered Group is to increase the profit share from India from 9% to as high as 30% of the group profit. Every 3rd family in the Metros should be a Standard Chartered customer. To be the Second largest profit making Bank in India after State Bank of India.

COMPANY VALUES
COURAGEOUS Bank encourages the people to take measured risks to deliver improved results for all our stakeholders. Where this results in mistakes, we seek to learn from our experience, to build better long-term solutions. RESPONSIVE Bank delivers in putting customers at the heart of our business. We spend time listening to our customer to understand whom they are & how they operate to anticipate their needs.

TRUSTWORTHY
It is our people who set us above organizations through a unique ability to build trusted relationships with all stakeholders.

37

STANDARD CHARTER COMPANY STRATEGY

The Strategies are composed of 4 elements: GO FOR GROWTH GET FIT TO GROW BUILDING VALUE LEADERSHIP STRENGTHEN THE CULTURE GO FOR GROWTH: The go for growth model compromises for three key opportunities: Build new core market in India, Indonesia Thailand & Taiwan. Reinforce the banks position in the core markets of Hong Kong, Singapore and Malaysia strengthen our network business comprising corporate and institutional relationships, usually with multinational companies, where we are bankers in more than one locations in our network. Leverages the general banking business model, which is a geographical, rather than a functional model. GET FIT TO GROW The fit to grow model highlights three linked initiatives: scope, hr shared service centre & financial reengineering. These three initiatives are linked to build a new operating model. BUILDING VALUE LEADERSHIP This element of the banks strategy utilizes economic profit as a measure of creating value for shareholders. Economic profit is that the business generates after deducting the cost of capital from trading profit. The difference between present & future economic profits represents the business growth potential. The building value leadership programs are enables: A long term strategic focus Better focus on activities which will create the most value

38

STRENGTHEN THE CULTURE The aim of the strengthening the culture are: Consumer focus Excellence is the standard Decisiveness

initiatives to strengthen the

culture is to make standard charted a great place to work. The aspects involved in

OPENNESS & TRUST

Budgeted cost reduction aims at reducing the operating costs. Best practice re-engineering involves a collation of the best practices for greater organizational effectiveness. Multi- business processing is the vehicles for transitioning different operations into global centralized operations. These would be the elements of a future operating model stimulating future growth.

39

3. RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problems. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that area generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods / techniques but also the methodology. I have carried out a research which is both qualitative and quantitative in its support. The qualitative approach applies to both, descriptive and inductive forms of research. While as in case of quantitative approach, an extensive use has been made of the literature available to carry out a detail research on the nature of the problem. I have chosen Standard chartered as the target company for my research study.

RESEARCH OBJECTIVES
Explore the various investment option available to Indian investors and figure out where mutual funds fit in. Understand the concept, organization and working of a mutual fund and the edge it retains over other investment avenues . Comprehend the intricacies of the Indian mutual fund industry .Review the current standing and future prospects of Standard Chartered Mutual Fund amid intense competition n the swiftly evolving Indian mutual fund industry

NATURE OF DATA:
I have made use of both, the primary sources and the secondary sources of data in eliciting information. PRIMARY DATA: The primary source of data involves oral interviews and questionnaires. These sources are inadvertently expected to yield more qualitative data and results. SAMPLE SIZE: SAMPLE UNIT: 60 Officials of SCB and the investors on Mutual Funds

40

SURVEY AREA:

NCR Delhi

DATA COLLECTION
The task of data collection begins after a research problem has been defined and research design/ plan chalked out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data viz., primary and secondary. The primary data are those which are collected fresh and for the first time and thus happen to be original in character. The secondary data, on the other hand, are those which have already been collected by some one else and which have already been passed through the statistical process.

PRIMARY DATA COLLECTION METHODS:

Interviews: I have conducted oral interviews as well as raised a questionnaire among the existing and potential investors of Mutual Funds in NCR Delhi

SECONDARY DATA COLLECTION METHOD

The secondary source of data includes relevant literature including periodicals and journal articles in the areas of Finance. The books and journals provide esoteric and quantitative data. Other sources include case studies written by various academic scholars in the field of Finance.

METHOD OF DATA ANALYSIS

I have conducted a graphical analysis based on the responses received from the persons questioned and interviewed. Once the interview was over, the responses received were be grouped together, and a graphical presentation and analysis has been made for every set of questions.

41

DATA ANALYSIS
THE TERMINOLOGIES USED NET ASSET VALUE (NAV):
NAV indicates the intrinsic worth of a scheme. NAV per unit represents the worth of each unit that is held by investor.

MATHEMATICALLY:
NAV = (Value of all Assets) - (Value of Liabilities, excluding those to unit holders) OR NAV = Unit Capital + Reserves Eg: No. of units = 1000 Liabilities Unit Capital 15,000 Reserves 13,000 Other Liabilities 2,000 Total 30,000 NAV = Asset Liabilities = Rs. 30,000 Rs. 2,000 NAV = Rs. 28,000 NAV = Unit Capital + Reserves = Rs. 15,000 + Rs. 13,000 NAV = Rs. 28,000 NAV per unit = Rs. 28,000/1,000 = Rs. 28.00 Assets Investment Other Assets Issue Expenses 25,000 4,000 1,000 30,000

42

ANALYSIS DATA

AND

INTERPRETATION

OF

THE MOST APPRAISED INVESTMENT CHANNEL

INVESTMENT CHANNEL FIXED DEPOSITS BONDS & DEBENTURES SHARES MUTUAL FUNDS OTHERS

SCORE 68.0 38.0 23.0 105.5 05.0

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120 100 80 60 40 20 0 1 FREQUENCY

Fixed Deposits Mutual Funds Bonds & Debentures Shares Others

Two of The distributors contacted did not answer the question as they said it was a policy matter. As investors have got their fingers burnt in equities, they now prefer mutual fund for investments. The next hot choice is bonds and debentures, followed by fixed deposits that are safer investment channels. The response is totally against equities that dont mean it is a bad choice. In fact, it is a high risk-high gain investment. The response is under impression of slow down in stock market.

44

INVESTMENT IN MUTUAL FUND

REMARKS BEST GOOD BAD WORS FREQUENCY 5 21 0 0

25 20 15 10 5 0 BEST GOOD BAD WORST

Mutual fund is the latest invest on among the available investment options before Indian investors, still it has been rated good by 81% of the respondents, while 19% rate it the best investment channel. As it provides professional management and reduces the risk by diversifying the portfolio, the investors move towards this concept.

45

MOST FAVOURED MARKET FOR INVESTMENTS

MARKET EQUITIES DEBT MONEY MARKET BALANCED

SCORE 03 17 01 05

20 15 10 5 0 EQUITIES EQUIEITES DEBT DEBT MONEY MONEY BALANCE BALANCE 1

The response is again the reflection of the stock market. In answer to the question where will you advise investments, 82% favored debt market while 18% went for balanced approach means investing in all the market in a definite ratio depending on the risk profile of the investor.

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CUSTOMER AWARENESS ABOUT STANDARD CHARTERED MUTUAL FUND

REMAKR HIGHLY AWARE AWARE LESS AWARE UNAWARE SCORE 05 13 08 00

14 12 10 8 6 4 2 0 HIGHLY AWARE 5

13

AWARE

LESS AWARE

UNAWARE

The awareness level among the investors about mutual fund is not very good, but among the aware ones the Standard Chartered mutual fund has very encouraging response considering the fact that Standard Chartered has not completed even a year in mutual fund. Around 50% of the distributors feel that investors are aware of Standard Chartered mutual fund. And 31% feel are less aware there are only 19% who think people are highly aware of it

47

MUTUAL FUND AS AN INVESTMENT CHANNEL

REMARK EXCELLENT GOOD AVERAGE BAD SCORE 4 3 0 0

4 3.5 3 2.5 2 1.5 1 0.5 0 EXCELLENT GOOD AVERAGE BAD

The response shows that within the short period of time mutual fund has become an attractive investment channel. 57%of the respondents think it an excellent opportunity and 43% find it good investment

48

FACTOR BEHIND MUTUAL FUNDS POPULARITY AS AN INVESTMENT CHANNEL.

FACTOR PORTFOLIO DIVERSIFICATION PROFESSIONAL MANAGEMENT REDUCTION OF RISK COVENIENCE

WEIGHTAGE 19 21 16 15

21%

27%

PORTFOLIO DIVERSIFICATION PROFESSIONAL MANAGEMENT RISK DIVERSIFICATION

23% 29% CONVENIENCE

Responses of the AMCs are not much different as this also proves professional management, with 29% support the core concept behind mutual funds popularity. This illustrates the fact that investors feel that AMCs are better manager of their money. 27% respondents think it is due to portfolio diversification and the 23% respondents feel it to be risk diversification and 23% respondents say factors are important. its is convenience that brings investors to mutual fund. It has been said that all the above

49

DRIVER BEHIND THE PERFORMANCE OF THE FUND

DRIVER RETURNS AGENT NETWORK PORTFOLIO EXPERT ADVICEO WEIGHT AGE 20 22 11 14

25 20 15 10 5 0

20

22 14 11

RETURNS AGENT NETWORK PORTFOLIO EXPERT ADVICE

As for as diver behind the performance is concerned, Returns and Agent network have scored the most with 63% in total the least is Portfolio with 16%.

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MARKET COMPETITION OF MUTUAL FUND

REMARK HIGHLY COMPETITIVE COMPETITIVE LESS COMPETITIVE NON-COMPETITIVE OTHER 4 3 2 1 0

WEIGHTAGE 4 2 0 0 1 HIGHLY COMPETITIVE COMPETITIVE LESS COMPETITIVE NONCOMPETITITVE OTHERS

Selling the fund is not an easy task at all. The responses show how competitive the market is. That is why 57% of them are of the option that the market is very competitive. My experience during the project also goes with the fact that mutual fund market is very highly competitive. To back but it is very new and it has still to prove itself on different fronts it shares the third spot with Kothari Pioneer.

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THE MOST IMPORTANT FACTOR FOR AN INVESTOR OF MUTUAL FUND

FACTOR RETURNS RISK PORTFOLIO SERVICE WEIGHTAGE 23 17 18 15

25 20 15 10 5 0 RETURNS RISK PORTFOLIO SERVICE

The respondents say that the general investors do not understand the portfolio and other technical terms. They just ask for how much return is expected. Another factor that they consider is that how much risk is involved in the investment. But the learned ones know the importance of Portfolio thats about 25% and also about 12% find it is the service that also plays role in the decision making of an investor

52

NEED OF AWARNESS AND PROMOTION EXCERCISE

REMARK YES NO WEIGHTAGE 7 0

7 6 5 4 3 2 1 0 YES NO

If we talk about awareness among the investors about mutual fund, it is very low comparing the potential of the industry. All the AMCs unanimously feel the need of good amount of awareness and promotional exercises.

53

4. CONCLUSION

The sample size taken was small (60) while the population with respect to it is very large. So the sample didnt bear the proper characteristics of the population. There was difficulty in getting the Questionnaires filled because of reluctant attitude (income disclosure) & lack of knowledge (about Mutual Funds) of the respondents. Research was restricted to only few areas of Delhi due to unavoidable reasons. Cost of the research was to be kept low so proper resources of collecting data cant be tapped. Lack of experience of the researchers was the biggest fallacy to the research processes. The study can be extended beyond the Delhi region. No. of researchers can be increased to conduct an intensive study. It can also involve study of various impediments in the investment avenues. Comparative analysis can be done of various instruments. Time for research can be increased for better results. Take help from a research organization to tap more resources at our disposal.

54

6. FINDINGS AND RECOMMENDATIONS

The inferences have been given simultaneously with the analysis but the major findings of the project are summarized below. 1. Mutual funds, surprisingly, rate the lowest in terms of investor awareness comparing about other investment products. Among the Mutual Funds in the market today, investors recall most public mutual funds such as UTI, SBI, Canbank and LIC. UTI is the most popular followed by SBI, Canbank and LIC. Private Mutual Funds are very new in the market compared to the public Mutual Funds. 2. Most of the investors of mutual funds find returns and promptness of service as the most important factor to invest in a fund, while the AMCs feel that along with returns, networking and portfolio are also important for sound business. 3. Out of the total sample size, 69% of the distributors feel that the investors, who are aware of mutual funds, are aware of Standard Chartered Mutual Fund. But are 39% who fell the investors are not aware. 4. 5. Standard Chartered Mutual Fund has a very sound brand name to back and it has the image of reliable, safe and promote fund. Analysis of the data shows that it is the debt schemes that are performing well these days when the stock market is under serious slow down. Among debt fund schemes, Standard Chartered has done extremely well on account of its quite low Volatility and best Sharpe Ratio, proving the funds objective of being a consistent performer. 6. The portfolio of Standard Chartered shows that it has invested only in highly rated equities, bond / NCDs and commercial papers. Standard Chartered with public money is appreciating. The safe play of

55

7.

The performance of Standard Chartered Mutual Fund in other schemes like Debt oriented, Liquid and Balanced is also very good as the financial analysis shows that it has the least negative NAV Absolute Return in the balanced fund over last six months and in the liquid fund it has given the second best growth rate in last 180 days.

8.

In the Equity funds, Standard Chartered, is still very low down the order but the concern part is that the performance, No matter there was a short-span of time available for Its performance as its reputation is not satisfactory at all, especially when it entered after the boom of IT sector which fell a long way. And now the stock market is at its worse.

9.

The AMCs in U.P. division place Standard Chartered among top three toughest competitors, that is a good remark for Standard Chartered, awarded within short period of time.

10.

The distributors rate Standard Chartered the next best fund after Templeton and 96% of the distributors feel that Standard Chartered has done well with the market conditions.

11.

The ban on Badla has been a boon for the Mutual Fund Industry that is why the Bala dealers have routed Rs. 2000 corers to the Industry in the last month and is still pouring in.

12.

The findings of the UTI debacle has been missed some of the experts feel that the impact will be average or no impact. They feel that the private Mutual Funds will be the gainers, as the money will be transferred to them as they are more transparent. But at the same time some experts have a complete different view they feel that the credibility of the entire Industry is at stake in the light of the UTI 64 debacle.

56

RESULTS OF THE FINDINGS

Based on the above analysis we have come to the various findings. (Based on the sample) That 20% of the Financial Investments do not consists of Mutual Funds Investments. Its lesser than that. Returns from the Mutual Funds are given the first priority while investing in Mutual Funds. The investment pattern of the investors depends on their age.

REPEAT CUSTOMERS
Customers visiting the SCB branch generally stay nearby and therefore come to the same branch every time they require services the customer footfall is therefore generally the same and hence require us not to approach the customers again and again

INDIFFERENT ATTITUDE OF CUSTOMERS

Customers sometime dont listen to us and doesnt pay attention on what we have for them because they are busy with their own work t the bank and thus they lack time and interest

FIXED NUMBER OF POLICIES

Covering only few products of SCB Bank due to time and resource constraint

57

7. ANNEXURE - NUMBERING
SCHEMES Scheme Name Fund Family Category Scheme Type Value NAV Research NAV Date (Rs.) Rating* 10.58 10/10/2006 10.30 10/10/2006 12.72 10/10/2006 10.58 10/10/2006 10.20 10/10/2006 12.65 10/10/2006 -10.00 10/10/2006

Grindlays Cash Fund Debt Standard Institutional(UltraShort OpenEnded Chartered Dividend Daily Inst) Grindlays Cash Fund Debt Standard Institutional(UltraShort OpenEnded Chartered Dividend Weekly Inst) Debt Grindlays Cash Fund Standard (UltraShort OpenEnded Institutional-Growth Chartered Inst) Grindlays Cash Standard Debt OpenEnded Fund-Daily Dividend Chartered (UltraShort) Grindlays Cash Standard Debt Fund-Dividend OpenEnded Chartered (UltraShort) Weekly Grindlays Cash Standard Debt OpenEnded Fund-Growth Chartered (UltraShort) Grindlays Cash Debt Super Institutional Standard (UltraShort OpenEnded Plan C-Dividend Chartered Inst) Daily Grindlays Cash Debt Super Institutional Standard (UltraShort OpenEnded Plan C-Dividend Chartered Inst) Monthly Grindlays Cash Debt Super Institutional Standard (UltraShort OpenEnded Plan C-Dividend Chartered Inst) Weekly Grindlays Cash Debt Standard Super Institutional (UltraShort OpenEnded Chartered Plan C-Growth Inst) Grindlays Dynamic Standard DebtBond Fund-Dividend OpenEnded Chartered Speciality Quarterly Grindlays Dynamic Standard DebtBond Fund-Dividend OpenEnded Chartered Speciality Yearly Grindlays Dynamic Standard Debt- OpenEnded

--

10.02 10/10/2006

--

10.00 10/10/2006

-----

10.79 10/10/2006 10.09 10/10/2006 10.43 10/10/2006 12.53 10/10/2006

58

Bond Fund-Growth Chartered Grindlays Fixed Standard Saving Scheme 8th Chartered Plan A-Dividend Grindlays Fixed Standard Saving Scheme 8th Chartered Plan A-Growth Grindlays Fixed Standard Saving Scheme 9th Chartered Plan A-Dividend Grindlays Fixed Standard Saving Scheme 9th Chartered Plan A-Growth Grindlays Floating Standard Rate Long-term Plan Chartered A-Dividend Montly Grindlays Floating Rate Long-term Plan Standard A-Dividend Chartered Quarterly Grindlays Floating Standard Rate Long-term Plan Chartered A-Dividend Yearly Grindlays Floating Standard Rate Long-term Plan Chartered A-Growth Grindlays Floating Standard Rate Long-term Plan Chartered B-Dividend Monthly Grindlays Floating Rate Long-term Plan Standard B-Dividend Chartered Quarterly Grindlays Floating Standard Rate Long-term Plan Chartered B-Dividend Weekly Grindlays Floating Standard Rate Long-term Plan Chartered B-Growth Grindlays Floating Standard Rate Short-term Chartered Fund-Dividend Daily Grindlays Floating Rate Short-term Standard Fund-Dividend Chartered Monthly Grindlays Floating Standard Rate Short-term Chartered

Speciality DebtCloseEnded Speciality DebtCloseEnded Speciality DebtCloseEnded Speciality DebtCloseEnded Speciality Debt (FR OpenEnded Long-term) Debt (FR OpenEnded Long-term) Debt (FR OpenEnded Long-term) Debt (FR OpenEnded Long-term) Debt (FR Long-term OpenEnded Inst) Debt (FR Long-term OpenEnded Inst) Debt (FR Long-term OpenEnded Inst) Debt (FR Long-term OpenEnded Inst) Debt (FR OpenEnded Short-term) Debt (FR OpenEnded Short-term) Debt (FR OpenEnded Short-term) -----10.24 05/10/2006 10.24 05/10/2006 10.00 05/10/2006 10.34 05/10/2006 10.03 10/10/2006

--

10.12 10/10/2006

----

10.40 10/10/2006 10.63 10/10/2006 10.02 10/10/2006

--

10.13 10/10/2006

---

10.00 10/10/2006 10.64 10/10/2006 10.07 10/10/2006

10.04 10/10/2006 10.07 10/10/2006

59

Fund-Dividend Weekly Grindlays Floating Rate Short-term Fund-Growth Grindlays Floating Rate Short-term InstitutionalDividend Daily Grindlays Floating Rate Short-term InstitutionalDividend Monthly Grindlays Floating Rate Short-term InstitutionalDividend Weekly Grindlays Floating Rate Short-term Institutional-Growth Grindlays Floating Rate Short-term Super Institutional Plan C-Dividend Daily Grindlays Floating Rate Short-term Super Institutional Plan C-Dividend Monthly Grindlays Floating Rate Short-term Super Institutional Plan C-Dividend Weekly Grindlays Floating Rate Short-term Super Institutional Plan C-Growth Grindlays Government Securities Investment PlanDividend Annually Grindlays Government Securities Investment PlanDividend Half s

Standard Debt (FR OpenEnded Chartered Short-term) Debt (FR Standard Short-term OpenEnded Chartered Inst) Debt (FR Standard Short-term OpenEnded Chartered Inst) Debt (FR Standard Short-term OpenEnded Chartered Inst) Debt (FR Standard Short-term OpenEnded Chartered Inst) Debt (FR Standard Short-term OpenEnded Chartered Inst) Debt (FR Standard Short-term OpenEnded Chartered Inst) Debt (FR Standard Short-term OpenEnded Chartered Inst) Debt (FR Standard Short-term OpenEnded Chartered Inst) Standard Chartered Standard Chartered Debt-Gilt OpenEnded (Md&Lg) Debt-Gilt OpenEnded (Md&Lg) --

11.38 10/10/2006

10.07 10/10/2006

--

10.02 10/10/2006

--

10.10 10/10/2006

--

11.23 10/10/2006

--

10.00 10/10/2006

--

10.03 10/10/2006

--

10.00 10/10/2006

--

10.80 10/10/2006

10.31 10/10/2006 10.11 10/10/2006

60

Yearly Grindlays Government Standard Securities Chartered Investment PlanDividend Quarterly Grindlays Government Standard Securities Chartered Investment PlanGrowth Grindlays Government Standard Securities Provident Chartered Plan InstitutionalDividend Quarterly Grindlays Government Standard Securities Provident Chartered Plan InstitutionalGrowth Grindlays Government Standard Securities Provident Chartered Plan RegularDividend Quarterly Grindlays Government Standard Securities Provident Chartered Plan RegularDividend Yearly Grindlays Government Standard Securities Provident Chartered Plan Regular-Growth Grindlays Government Standard Securities Short Chartered Term-Dividend Monthly Grindlays Government Standard Securities Short Chartered Term-Dividend Quarterly Grindlays Government Standard Securities Short Chartered Term-Growth s

Debt-Gilt OpenEnded (Md&Lg)

10.05 10/10/2006

Debt-Gilt OpenEnded (Md&Lg)

12.69 10/10/2006

Debt-Gilt OpenEnded (Md&Lg)

10.05 10/10/2006

Debt-Gilt OpenEnded (Md&Lg)

10.28 10/10/2006

Debt-Gilt OpenEnded (Md&Lg)

10.04 10/10/2006

Debt-Gilt OpenEnded (Md&Lg)

10.24 10/10/2006

Debt-Gilt OpenEnded (Md&Lg)

10.24 10/10/2006

Debt-Gilt OpenEnded (Short)

10.01 10/10/2006

Debt-Gilt OpenEnded (Short)

10.04 10/10/2006

Debt-Gilt OpenEnded (Short)

11.86 10/10/2006

61

Grindlays SSI Fund Short-term Standard InstitutionalChartered Dividend Monthly Grindlays SSI Fund Standard Short-term Chartered Institutional-Growth Grindlays SSI Fund Short-term Super Standard Institutional Plan C- Chartered Dividend Monthly Grindlays SSI Fund Short-term Super Standard Institutional Plan C- Chartered Growth Grindlays Super Saver Income Fund Standard Short-term-Dividend Chartered Monthly Grindlays Super Standard Saver Income Fund Chartered Short-term-Growth Grindlays Super Saver Income Standard Investment-Dividend Chartered Half Yearly Grindlays Super Saver Income Standard Investment-Dividend Chartered Quarterly Grindlays Super Saver Income Standard Investment-Dividend Chartered Yearly Grindlays Super Standard Saver Income Chartered Investment-Growth Grindlays Super Saver Income Standard Medium TermChartered Dividend Grindlays Super Saver Income Standard Medium TermChartered Growth Standard Chartered Standard All Seasons Bond Chartered Fund Plan ADividend Half s

Debt (Short OpenEnded Inst) Debt (Short OpenEnded Inst) Debt (Short OpenEnded Inst) Debt (Short OpenEnded Inst) Debt OpenEnded (Short) Debt OpenEnded (Short) Debt OpenEnded (Medium) Debt OpenEnded (Medium) Debt OpenEnded (Medium) Debt OpenEnded (Medium) Debt OpenEnded (Medium) Debt OpenEnded (Medium) Debt- OpenEnded Speciality

--

10.02 10/10/2006

--

10.06 10/10/2006

--

10.02 10/10/2006

--

10.06 10/10/2006

10.03 10/10/2006

13.67 10/10/2006

10.18 10/10/2006

10.05 10/10/2006

10.20 10/10/2006

15.95 10/10/2006

10.22 10/10/2006

10.89 10/10/2006 -10.18 10/10/2006

62

Yearly Standard Chartered All Seasons Bond Standard DebtOpenEnded -10.10 10/10/2006 Fund Plan AChartered Speciality Dividend Quarterly Standard Chartered All Seasons Bond Standard DebtOpenEnded -10.46 10/10/2006 Fund Plan AChartered Speciality Dividend Yearly Standard Chartered Standard DebtAll Seasons Bond OpenEnded -10.51 10/10/2006 Chartered Speciality Fund Plan A-Growth Standard Chartered Standard EquityClassic Equity FundOpenEnded -11.15 07/10/2006 Chartered Diversified Dividend Standard Chartered Standard EquityPremier Equity OpenEnded -9.69 07/10/2006 Chartered Diversified Fund-Dividend Standard Chartered Standard EquityPremier Equity OpenEnded -9.69 07/10/2006 Chartered Diversified Fund-Growth *Rating is on a scale of 1 to 5 indicating worst to best schemes,if performance for 18 months is available.

QUESTIONNAIRE
QUESTIONNAIRE FOR CUSTOMERS VIEWS ON MUTUAL FUNDS
NAME:

63

ADDRESS: Q1. Do you know about standard chartered mutual funds? a). YES b). NO Q2. Where do you invest your surplus funds? a). Fixed deposits b). Post office schemes c). Mutual funds d). Banks Q3. Which scheme do you prefer for investments? a). Equity b). Balanced c). Debt Q4. What is the time horizon while investing? a). 1 year b). 3 to 5 years c). 5 years and above

Q5.Are you satisfied with standard chartered mutual funds?

64

Q.6 D o you think SC mutual funds are the best in the market Yes No

Q.7 Yes No

Mutual funds are the least risky investment today, do you agree

65

8. BIBLIOGRAPHY
Websites
Standard charterdmf.com (www.oecd.org/dataoecd/41/19/41911510pdf.) Capital market.co(www.capital market.com/magazine/cm1319/face.htm.) Mfindia.com (home. catholic web.com/ mfindia/) Business-standard.com (www.alexa.com/site info/business-standard.com) ICICI direct.com (content icicidirect.com/active trade asp.)

MAGAZINES

Economics times Business standard Financial times Outlook money Capital market Investors India

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