Final Project of Vaishali

8/12/2019 Final Project of Vaishali

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Company Profile

AXIS Bank is one of the fastest growing banks in private sector. The Bank operates in four

segments, namely treasury, retail banking, corporate/ wholesale banking and other banking

business. The treasury operations include investments in sovereign and corporate debt, equity

and mutual funds, trading operations, derivative trading and foreign exchange operations on the

account, and for customers and central funding. Retail banking includes lending to individuals/

small businesses subject to the orientation, product and granularity criterion. It also includes

liability products, card services, Internet banking, automated teller machines (ATM) services,

depository, financial advisory services, and non resident Indian (NRI) services. The corporate/

wholesale banking segment includes corporate relationships not included under retail banking,

corporate advisory services, placements and syndication, management of publics issue, project

appraisals, capital market related services, and cash management services. The Bank's

registered office is located at Ahmedabad and their Central Office is located at Mumbai. The

Bank has a very wide network of more than 1042 branches (including 56 Service Branches/

CPCs as on June 30, 2010). The Bank has a network of over 4,474 ATMs providing 24 hrs a

day banking convenience to their customers.

This is one of the largest ATM networks in the country. The Bank has five wholly-owned

subsidiaries namely Axis Securities and Sales Ltd, Axis Private Equity Ltd, Axis Trustee

Services Ltd, Axis Asset Management Company Ltd and Axis Mutual Fund Trustee Ltd. Axis

Bank was incorporated in the year 1993 with the name UTI Bank Ltd. The Bank was the first

private banks to have begun operations after the Government of India allowed new private


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banks to be established.

The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit

Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance

Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance

Company Ltd, The New India Assurance Company Ltd, The Oriental Insurance Company Ltd

and United India Insurance Company Ltd. In the year 2001, the bank along with Global Trust

Bank (GTB) had a merger proposal to create the largest private sector bank, but due to media's

issues both the banks withdraw the merger proposal. In the year 2003, the Bank was given the

authorized to handle Government transactions such as collection of Government taxes, to

handle the expenditure related payments of Central Government Ministries and Departments

and pension payments on behalf of Civil and Non-civil Ministries such as defence, posts,

telecom and railways. In December 20003, the Bank launched their merchant acquiring

business. In the year 2005, the Bank raised $239.3 million through Global Depositary Receipts.

They won the award 'Outstanding Achievement Award' for the year 2005 from Indian Banks

Association for IT Infrastructure, delivery capabilities and innovative solutions. In December

2005, the Bank set up Axis Securities and Sales Ltd (originally incorporated as UBL Sales Ltd)

to market credit cards and retail asset products.

In October 2006, they set up Axis Private Equity Ltd, primarily to carry on the activities of

managing equity investments and provide venture capital support to businesses. In the year of

2007, the bank again raised $218.67 million through Global Depository Receipts. They opened

153 new branches during the year, which includes 43 extension counters that have been

upgraded to branches and 8 Service branches/ CPCs. They also opened new overseas offices at

Singapore, Dubai and Hong Kong and a representative office in Shanghai. During the year

2007-08, the Bank opened 143 new branches, taking the number of branches to 651 which

included 33 extension counters that have been upgraded to branches. Also, they expandedoverseas with the opening of a branch at the Dubai International Finance Centre. The Bank

changed their name from UTI Bank Ltd to Axis Bank Ltd with effect from July 30, 2007 to

avoid confusion with other unrelated entities with similar name.


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During the year 2008-09, the Bank opened 176 new branches that include 12 extension

counters that have been upgraded to branches taking the total number of branches and ECs to

835. During the year, they opened 831 ATMs, thereby taking the ATM network of the Bank

from 2,764 to 3,595. Also, they opened a Representative Office in Dubai. In May 2008, the

Bank established Axis Trustee Services Company Ltd as a wholly owned subsidiary company,

which is engaged in trusteeship activities. In December 2008, they launched their new

investment advisory service exclusively for High Net Worth clients. In January 2009, the Bank

set up Axis Asset Management Company Ltd to carry on the activities of managing a mutual

fund business. Also, they incorporated Axis Mutual Fund Trustee Ltd to act as the trustee for

the mutual fund business. During the year 2009-10, the Bank opened 200 branches taking the

total number of branches Extension Counters (ECs) to 1,035. In March 209, 2010, they opened

their 1000 branch at Bandra West, Mumbai. In September 2009, Axis Bank launched the

private banking business in the domestic market, christened 'Privee' to cater to highly affluent

individuals and families offering them unique investment opportunities During the year, the

Capital Markets SBU was restructured with the debt capital market business (hitherto a part of

the capital markets) carved into a separate vertical.

As a result, the Bank's Capital Markets SBU comprises equity capital markets (ECM)

business, mergers and acquisitions and private equity syndication. In February 24, 2010, the

Bank launched the 'AXIS CALL & PAY on atom', a unique mobile payments solution using

Axis Bank debit cards. Axis Bank is the first bank in the country to provide a secure debit card-

based payment service over IVR. During the year 2010-11, 407 new branches were added to

the Bank's network taking the total number of branches and extension counters (ECs) to 1,390.

Of these, 564 branches/ ECs are in semi-urban and rural areas and 826 branches/ECs are in

metropolitan and urban areas. The Bank is present in all states and Union Territories (except

Lakshadweep) covering 921 centres.

The ATM network of the Bank increased from 4,293 to 6,270. During the year, the Bank also

opened a Representative Office in Abu Dhabi. This was in addition to the existing branches at

Singapore, Hong Kong and DIFC (Dubai International Financial Centre) and representative

offices at Shanghai and Dubai. In March 7, 2011, the Bank incorporated a new subsidiary


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namely Axis U.K. Ltd. as a private limited company registered in the United Kingdom (UK)

with the main purpose of filing an application with Financial Services Authority (FSA), UK for

a banking license in the UK .

Board of Directors

Shikha Sharma, Chairperson

MD & CEO of Axis Bank

Over two decades of experience across the spectrum of financial services

Chandresh Kumar Nigam

MD & & CEO of Axis Asset Management Company

Over 21 years experience in equity fund management

Lester Gray

CEO - Asia Pacific for Schroder Investment Management (Singapore) Ltd.

ChairmanInvestment Management Association, Singapore

R. K. Bammi

Executive Director (Retail Banking) of Axis Bank

Certified Associate from Indian Institute of Bankers

Independent Directors

Ashok Sinha

An IIT & IIM graduate with 30 years of experience in Petroleum Industry

Awarded India Chief Financial Officer in 2001


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T S Narayanasami

Ex MD & CEO of United Stock Exchange

Erstwhile Chairman & MD of Bank of India, Indian Overseas Bank and Andhra

Bank

U R Bhat

Managing Director of Dalton Capital Advisors (India)

Fellow of the Chartered Institute of Bankers, London

Pranesh Misra

Founder of Brandscapes Consultancy Private Limited

Over 26 years experience in communication, marketing, marketing research,

brand planning and international client management across varied industries


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Key Information

Sanjiv Misra , Chairman

Shikha Sharma , Managing Director & CEO

K N Prithviraj , Nominee

V R Kaundinya , Director

Company Head Office / Quarters:

Trishul 3rd Floor Law Garden,

Ellis Bridge,

Ahmedabad,

Gujarat-380006

Phone : 91-79-26409322

Fax : 91-79-26409321

E-mail :[email protected]

Web :http://www.axisbank.com
mailto:[email protected]://www.axisbank.com/http://www.axisbank.com/mailto:[email protected]


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Awards & Recognition

1. Bank of the Year - Money Today FPCIL Awards 2012-13

2. Best Bank - CNBC-TV18 Indias Best Bank and Financial Institution Awards 2012

3. Best Bank - Runner Up - Outlook Money Awards 2012

4. Consistent Performer - Indias Best Banks 2012 Survey by Business Today & KPMG

5. Fastest Growing Large Bank - Dun & Bradstreet - Polaris Financial Technology Banking

Awards 2012

6. Fastest Growing Large Bank - Businessworld Best Banks Survey 2012

7. Best Domestic Bond House - The Asset Triple A Country Awards 2012 - Our Bank has

been honored with this award for the third year in a row.

8. India Bond House of the year - IFR ASIA - Country Awards 2012

9. Deal Maker of the Year in Rupee Bonds - Businessworld Magna Awards - India's Best

Deal Makers 2012

10.The Best Emerging Bullion Dealing Bank - 9th India International Gold Convention-

2011-12

11.

Best Acquiring Institution in South Asia - Visa LEADER Award at Visas 2012

APCEMEA Security Summit, Bali

12.Gold Shield for Excellence in Financial Reporting in the Private Banks category - 2011-

12 - ICAI (Institute of Chartered Accountants of India)


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CHAPTER 2INTRODUCTION TO TOPIC


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THEORETICAL FOUNDATIONMUTUAL FUND INDUSTRY

Not so long ago a common investor when asked about his investing would have pointed

out to the Fixed Deposits that he holds with the bank, the Government Bonds that he has invested

in, the deposits with the Post Office and the basket of shares (if any) that he holds in his kitty.

The common man was not aware of the alternate route to investment, that of Mutual Funds.

Gradually and slowly, with the privatization and opening up of international borders, people are

getting more and more informed about other avenues of investment, be it Insurance or Mutual

Funds. Consumption driven growth in the Indian markets and globalization have brought several

world-class products and the solution to the doors of Indian consumers. Investors attach utmost

importance to convenience, quality of services, choice of the products and solution, speed of

delivery proper manager for their funds. They also demand higher standards of services andlower cost. To suit endless needs of the customers there are various options available with them

for investment.

However, risk diversification is the very purpose of the mutual funds. It is the

safest way to play the market. Gradually people in India, are getting educated more and more

about Mutual Funds through the interplay of the Banks and AMCs. Every day we see new forays

into the mutual fund industry with the entry of new players and the introduction of new schemes.

The investors are getting informed day by day. The present generation is more open to the idea

of investing in a mutual fund, since they are very much aware of the global scenario. India is

observing this transition and soon our investors would be displaying better investment habits

than they had exhibited previously.

Personal finance discipline demands every individual to plan for savings against current

income and expenditure. As one goes on in life, the standard of living the rises, the expenditure

to meet those needs also increases and needs also increases. Without proper financial planning,

the future can be a miserable struggle to meet these demands.

Role of the financial system is to enthuse economic development. As investors are getting more

educated and aware, they look for innovative investment instruments so that they are able to

reduce investment risk, maximize returns along with certain level of convenience and Minimize

transaction costs. As a result there has been advent of numerous innovative financial instruments

such as company deposits, bonds, insurance and mutual funds.


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CONCEPT OF MUTUAL FUND

A Mutual Fund is a trust which pools the savings of a number of investors who share common

financial goal. The money thus collected is invested by the fund manager in different types of

securities depending upon the objective of the scheme. These could range from debentures to

shares to money market instruments. The income so earned through these investments and the

capital appreciation realized by the scheme are shared by its unit holders in proportion to the

number of units which are owned by them. Thus a Mutual Fund is the most suitable investment

for the common man as it offers an opportunity to invest in professionally managed and

diversified portfolio at a relatively low cost. The savings of all the investors are put together to

increase the buying power and hire a professional manager to invest and monitor the money.

In India, a mutual fund is constituted as a Trust and the investor subscribes to the units issued

by fund. Since each owner is a part owner of a mutual fund, it is necessary to establish the value

of his part. In other words each share or unit that an investor holds needs to be assigned the

value.. This is generally called the Net Asset Value (NAV) of one unit or one share. The value of

investors part ownership is thus determined by the NAV of the number of units held.


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MUTUAL FUNDS FUNCTION WITHIN STRICT REGULATORY

FRAMEWORK

The Association of Mutual Funds In India (AMFI) reassures the investors in units ofmutual funds that the mutual funds function within the strict regulatory framework.

The different entities such as the Mutual Fund, the Asset Management Company and the

Custodian operate as per the provisions of the SEBI Mutual Fund Regulation 1996 and the rules

and guidelines issued by SEBI. Each of these entities has independent Boards of Directors and

separate auditors.

SEBI keeps a close watch on the mutual funds through periodical reports and every three

months, each mutual fund submits to SEBI a report conforming compliance with regulatory

provisions and mutual funds are required to record their investment decisions. Any deficiency or

non-compliance is dealt with suitably by SEBI.

Every year, each mutual fund is inspected by SEBI and such inspection is both a detailed

scrutiny of operations and a rectification exercise. Thus, the mutual funds are strictly supervised

and regulated entities and the regulatory provisions match with international standards. AMFI

also is engaged in upgrading professional standards and in promoting best industry practices in

diverse areas such as valuation, disclosure, transparency etc.


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ADVANTAGES OF MUTUAL FUNDS:

Professional management-Even if an investor has a big amount of capital available to him, he

gets benefit from the professional management skills brought in by the fund in the management

of investors portfolio. The investment management skills brought in, along with the needed

research into available investment options ensure a much better return than what an investor can

manage on his own.

Diversification of Risk- An investor in a mutual fund acquires a diversified portfolio, no

matter how small his investment is. Diversification reduces risk of loss, as compared to

investing directly in one or two shares or debentures or other instruments. When an

investor invests directly, all the risk of potential loss is his own. While investing in pool

of funds with other investors, any loss on one or two securities is also shared with other

investors. This risk reduction is one of the most important benefits of a collective

investment vehicle like mutual fund.

Liquidity- Often, investors hold shares or bonds which they cannot directly, easily and

quickly sell. Investment in mutual funds, on the other hand, is more liquid. An investor

can liquidate the investment, by selling the units to the fund if open-end, or selling them

in the market if the fund is close-end, and collect funds at the end of each period specified

by the mutual fund or the stock market.


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Reduction of Transaction Cost- A direct investor bears all the cost of investing such as

custody of security and brokerage. When going through a fund, the investor has the

benefits of economies of scale; the funds pay a lesser costs because of larger volumes,

benefits passed on to its investors.

Convenience and Flexibility- Mutual fund management companies often offer many

investor services that a direct market investor cannot get. Investors can easily transfer

their holdings from one scheme to the other; get updated on market information, and so

on.

Regulation- Securities Exchange Board of India (SEBI), the mutual funds regulator has

clearly defined rules, which govern mutual funds. These rules relate to the formation,

administration and management of mutual funds and also prescribe disclosure and

accounting requirements. The high level of regulation seeks to protect the interest of

investors.


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DISADVANTAGES OF MUTUAL FUNDS:

Professional Management- Many investors debate over whether or not the so-called

professionals are any better than the common investor at picking stocks. Management is

by no means infallible, and, even if the fund loses money, the manager still takes his/hercut.

Costs - Mutual funds don't exist solely to make the life easier--all funds are in it for a

profit. The mutual fund industry is masterful at burying costs under layers of jargon.

These costs are very complicated

Taxes - When making decisions about the money, fund managers don't consider the

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.

Dilution - It's possible to have too much diversification. Because funds have small

holdings in so many different companies, high returns from a few investments often

don't make much difference on the overall return.


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TYPES OF MUTUAL FUND SCHEMES

TYPES OF MUTUAL FUNDS

STURCTURE INVESTMENT OBJECTIVE OTHER

1.OPEN ENDED FUND 1.GROWTH FUND 1.TAX SAVING

2.CLOSE ENDED FUND 2.INCOME FUND 2.SPECIAL

3.INVERTAL FUND 3.BALANCED FUND 3.INDEX SCHEME

4.SECTOR SPECFIC

1.OPENENDED SCHEMES

The units offered by these schemes are available for sale and repurchase on any business day at

NAV based prices. Hence, the unit capital of the schemes keeps changing each day. Such

schemes thus offer very high liquidity to investors and are becoming increasingly popular in

India. Please note that an open-ended fund is NOT obliged to keep selling/issuing new units at

all times, and may stop issuing further subscription to new investors. On the other hand, an open-

ended fund rarely denies to its investor the facility to redeem existing units.

2.CLOSED ENDED SCHEMES

The unit capital of a close-ended product is fixed as it makes a one-time sale of fixed number of

units. These schemes are launched with an initial public offer (IPO) with a stated maturity period

after which the units are fully redeemed at NAV linked prices. In the interim, investors can buy


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or sell units on the stock exchanges where they are listed. Unlike open-ended schemes, the unit

capital in closed-ended schemes usually remains unchanged. After an initial closed period, the

scheme may offer direct repurchase facility to the investors. Closed-ended schemes are usually

more illiquid as compared to open-ended schemes and hence trade at a discount to the NAV.

This discount tends towards the NAV closer to the maturity date of the scheme.

1. INTERVAL SCHEMES

These schemes combine the features of open-ended and closed-ended schemes. They may be

traded on the stock exchange or may be open for sale or redemption during pre-determined

intervals at NAV based prices.

2. GROWTH SCHEMES

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.

3. INCOME SCHEMES

These schemes, also commonly called Debt Schemes, invest in debt securities such as corporate

bonds, debentures and government securities. The prices of these schemes tend to be more stable

compared with equity schemes and most of the returns to the investors are generated through

dividends or steady capital appreciation. These schemes are ideal for conservative investors or

those not in a position to take higher equity risks, such as retired individuals. However, as

compared to the money market schemes they do have a higher price fluctuation risk and

compared to a Gilt fund they have a higher credit risk.

4. BALANCED SCHEMES

These schemes are commonly known as Hybrid schemes. These schemes invest in both equities

as well as debt. By investing in a mix of this nature, balanced schemes seek to attain the

objective of income and moderate capital appreciation and are ideal for investors with a

conservative, long-term orientation.

5.

TAX SAVING SCHEMES

Investors are being encouraged to invest in equity markets through Equity Linked Savings

Scheme (ELSS) by offering them a tax rebate. Units purchased cannot be assigned /

transferred/ pledged / redeemed / switched out until completion of 3 years from the date of

allotment of the respective Units.


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The Scheme is subject to Securities & Exchange Board of India (Mutual Funds) Regulations,

1996 and the notifications issued by the Ministry of Finance (Department of Economic Affairs),

Government of India regarding ELSS. Subject to such conditions and limitations, As prescribed

under Section 88 of the Income-tax Act, 1961.

6. INDEX SCHEMES

The primary purpose of an Index is to serve as a measure of the performance of the market as a

whole, or a specific sector of the market. An Index also serves as a relevant benchmark to

evaluate the performance of mutual funds. Some investors are interested in investing in the

market in general rather than investing in any specific fund. Such investors are happy to receive

the returns posted by the markets.


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MUTUAL FUNDS IN INDIA- A BRIEF HISTORY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the

initiative of Government of India and Reserve bank. The objective was to attract the small

investors and introduce them to market investments. Since then, the history of mutual funds in

India can be broadly divided into three distinct phases.

PHASE 1- 1964-87 (UNIT TRUST OF INDIA)

In 1963, UTI was established by an Act of Parliament and given a monopoly. Operationally, UTI

was set up with the help of the Reserve Bank of India, but was later de linked from the RBI. The

first and still one of the largest schemes, launched by the UTI was the Unit Scheme 1964. In

1970s 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.UTI is

still the largest player with the largest corpus of investible funds among all mutual funds

currently operating in India.

PHASE 2- 1987-1993 (ENTRY OF PUBIC SECTOR FUNDS)

1987 marked the entry of non-UTI, Public Sector mutual funds, bringing in competition. With

the opening of the economy, many public sector banks and financial institutions were allowed to

establish mutual funds. The State Bank of India established the first non-UTI mutual funds-SBI

Mutual Fund-in November 1987. From 1987 to 1992-93, the fund industry expanded nearly 7

times in terms of Assets under Management. During this period, investors were shifting from the

bank deposits to mutual funds, as they started allocating larger part of their savings and financial

assets to fund investments.

PHASE 3- 1993-1996 (EMERGENCE OF PRIVATE FUNDS)

Permission was granted for the entry of private sector funds in 1993, giving the investors a

broader choice of funds to choose from and increasing competition for the existing public

sector funds. Foreign fund management companies were also allowed to operate mutual funds.

These private funds brought in 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


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intermediary. During the year 1993 94, 5 private sector mutual funds launched their schemes

followed by six others in 1994-95.

PHASE 4- 1996 (SEBI REGULATION FOR MUTUAL FUNDS)

Liberalization and deregulation of the Indian economy has introduced competition and provided

impetus to the growth of the industry. More investor friendly regulatory measures have been

taken both by SEBI to protect the investor and by the government to enhance investors returns

through these benefits. A comprehensive set of regulations for all mutual funds operating in

India was introduced with SEBI (Mutual Fund) Regulations,1996.these regulations set uniform

standards for all funds and will eventually be applied in full to Unit Trust if India as well, even

though UTI is governed by its own UTI Act.

1999 marks the beginning of a new phase in the history of mutual fund industry in India, a phase

of significant growth in terms of both amounts mobilized from investors and assets under

management.

PHASES IN MUTUAL FUND INDUSTRY INDIA

phases Years Number of

MF

Sectors AUM

1stphase 1964-1987 1 UTI 6700cr.

2ndphase 1987-1993 8 Public

sector

47004cr.

3rdphase 1993-2003 33 Private

sector

121805cr.


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RISK ASSOCIATED WITH MUTUAL FUNDS:-

The Risk-Return Trade-off

The most important relationship to understand is the risk-return trade-off. Higher the risk greater

the returns/loss and lower the risk lesser the returns/loss.

Hence it is upto investor, the investor to decide how much risk you are willing to take. In order

to do this you must first be aware of the different types of risks involved with your investment

decision.

Market Risk

Sometimes prices and yields of all securities rise and fall. Broad outside influences affecting the

market in general lead to this. This is true, may it be big corporations or smaller mid-sized

companies. This is known as Market Risk.

Credit Risk

The debt servicing ability (may it be interest payments or repayment of principal) of a company

through its cash flows determines the Credit Risk faced by you. This credit risk is measured by

independent rating agencies like considered poor credit quality.


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Inflation Risk

Rs. 100 today is worth more than Rs. 100 tomorrow.Remember the time when a bus ride cost

50 paisa? The root cause, Inflation. Inflation is the loss of purchasing power over time. A lot of

times

people make conservative investment decisions to protect their capital but end up with a sum of

money that can buy less than what the principal could at the time of the investment. This happens

when inflation grows faster than the return on your investment. A well-diversified portfolio with

some investment in equities might help mitigate this risk.

Interest Rate Risk

In a free market economy interest rates are difficult if not impossible to predict. Changes in

interest rates affect the prices of bonds as well as equities. If interest rates rise the prices of bonds

fall and vice versa. Equity might be negatively affected as well in a rising interest rate

environment.

Political/Government Policy Risk

Changes in government policy and political decision can change the investment environment.

They can create a favorable environment for investment or vice versa.

Liquidity Risk

Liquidity risk arises when it becomes difficult to sell the securities that one has purchased.

Liquidity Risk can be partly mitigated by diversification, staggering of maturities as well as

internal risk controls that lean towards purchase of liquid securities.


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STRUCTURE

SPONSOR

Sponsor is the person who acts alone or in combination with another body corporate establishes a

mutual fund. Sponsor must contribute at least 40% of the net worth of the Investment Managed

and meet the eligibility criteria prescribed under the Securities and Exchange Board of India

(Mutual Funds) Regulations, 1996.

TRUST

The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian Trusts

Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908.

TRUSTEE

Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals). The

main responsibility of the Trustee is to safeguard the interest of the unit holders and also ensure

that the AMC functions in the interest of investors and in accordance with the Securities and

Exchange Board of India

(Mutual Funds) Regulations, 1996. At least 2/3rd directors of the Trustee are independent

directors who are not associated with the Sponsor in any manner.


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ASSET MANAGEMENT COMPANY (AMC)

The AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act as an

asset management company of the Mutual Fund. At least 50% of the directors of the AMC are

independent directors who are not associated with Sponsor in any manner. The AMC must have the net

worth of at least 10 Crore at all times.

CUSTODAIN AND DEPOSITORIES

Mutual funds are in the business of buying and selling of securities in large volumes. The Custodian is

appointed by the Board of Trustees for safekeeping the physical securities or participating in any clearing

system on behalf of the mutual fund. The custodian should be an entity independent of the sponsors and is

required to be registered with SEBI.

BANKERS

A funds activities involve dealing with money on a continuous basis primarily with respect to buying and

selling units, paying for investments made, receiving the proceeds on the sale of investments and

discharging its obligations towards operating expenses. A funds bankers therefore play a crucial role

with respect to its financial dealings by holding its bank accounts and providing it with remittance

services.

TRANSFER AGENTS

Transfer agents are responsible for issuing and redeeming units of mutual funds and provide other related

services such as preparation of transfer documents and updating investor records. A fund may chose to

carry out this activity in-house and charge the scheme for the service at a competitive market rate.

DISTRIBUTORS

For a fund to sell units across a wide retail base of individual investors, an established network of

distribution agents is essential. AMCs usually appoint Distributors or Agents or Brokers, who sell units

on behalf of the fund. Some funds even require that all transactions be routed through such brokers. A

broker usually acts on behalf of several mutual funds simultaneously and may have several sub-brokers

under him for the purpose of distribution of units. In India, besides brokers, independent individuals are

appointed as agents for the purpose of selling the fund schemes to investors directly. While individuals

constitute the largest segment in the category of mutual fund distributors, other distributors include

Banks, Non Banking Finance Companies, and Distribution Companies.


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REGULATORS IN INDIA

SEBI

The Government of India constituted Securities and Exchange Board of India, by an

Act of Parliament in 192, as the apex regulator of all entities that either raise funds in

the capital markets or invest in capital market securities such as shares and debentures

listed on stock exchanges. Mutual funds have emerged as an important institutional

investor in capital market securities. SEBI requires all mutual funds to be registered

with them. It issues guidelines for all the mutual fund operations including where they

can invest, how they should account for income and expenses , what investment limits

and restrictions must be complied with, how they should make disclosures of

information to investors and generally acts in the interest of investor protection.

RBI

Banks come under the regulatory jurisdiction of the RBI. Therefore, the operations of

bank owned mutual funds are governed by guidelines issued by Reserve Bank of India.

Subsequently, it has been clarified that all mutual funds, being primarily capital market

players, come under the regulatory provisions of SEBI. Thus, the bank owned funds

continue to be under the joint supervision of both the RBI and the SEBI. It is generallyunderstood that all the market related and investor related activities of the funds are to be

supervised by SEBI, while any issues concerning the ownership of the AMCs by banks

fall under the regulatory ambit of the RBI.

RBI AS SUPERVISOR OF MONEY MARKET MUTUAL FUNDS Reserve Bank of

India is the only government agency that is charged with the sole responsibility to control

the money supply in the country. Therefore, it has the sole supervisory responsibility over

all entities that operate in the money markets, be it banks and companies that issue

securities such as certificates of deposit or commercial paper, or banks and mutual funds

who are allowed to borrow from or lend in the call money market


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AXIS MUTUAL FUNDS

Formerly known as UTI Bank, Axis Bank is one of the

largest private banks of India and Axis AMC is a 100% subsidiary

of Axis Bank which was incorporated on 13th January, 2009. Despite being new to the industry,

it is one of the fastest growing asset management companies of India. Given the strong parentage

of Axis Bank, quality skilled team, innovative investment products and distribution strategy, this

investment company has evolved as a potential investment hub. This asset management company

specializes in launching and executing various mutual fund schemes to cater to investors needs

both in equity as well as in fixed income space. This company is known for the wide variety of

flexible investment schemes like Equity Schemes, Fixed Income Funds, Tax Saver Funds andHybrid Funds etc

Axis Mutual Fund launched its first scheme in October 2009- a challenging period on any

account not just for the Indian but the global investor too. Despite this Axis Mutual Fund in less

than three years has got off to a good start. Some numbers that bear this out

A-well-rounded product suite that consists of 28 Schemes (4 Equity, 21 Debt, 1Hybrid,

1Gold FOF & 1 Gold ETF) Over Relaxed 460,000 investors.

Presence in 70 cities with branch office in each

AWARDS AND ACHIEVEMENTS

AXIS Mutual Fund has been the proud recipient of the following awards: -

CNBC TV - 18 Crisis Mutual Fund of the Year Award 2010 and 5 Awards for our

schemes.

Best Bank - Private Sector NDTV Profit Business Leadership Awards

Brand Excellence Award 2011 (BFSI) StarNews

Best Bond House India -2011 Finance Asia


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Most Productive Private Sector Bank FIBAC 2011 Banking Awards

Best Risk Master (Private Sector Category) FIBAC 2011 Banking Awards

Five star fund by ICRA in the ICRA Mutual Fund awards 2012.

Fastest Growing Large Bank - Business world Best Banks Survey 2012

Best Bank - Runner Up - Outlook Money Awards 2012

Best Bank - CNBC-TV18 Indias Best Bank and Financial Institution Awards

2012

PRODUCT RANGE

EQUITY SCHEMES:- Equity Funds:

Axis Equity Fund

Axis Long Term Fund

Axis Midcap Fund

Axis Focused 25Fund

Fixed Income Funds:

Axis Liquid Fund

Axis Treasury Advantage Fund

Axis Short Term Fund

Axis dynamic Bond Fund

Hybrid Funds:

Axis Triple Advantage fund

Axis Income Server

Gold Funds:

Axis Gold Fund


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Axis Gold ETF

Axis Equity Fund:

An Open-ended Growth Scheme

To Achieve long term capital appreciation by investing in a diversified portfolio predominantly

consisting of equity and equity related securities including derivatives. However, there can be no

assurance that the investment objective of the scheme will be achieved.

Key Features

1 A diversified equity fund that invest primarily in the Indian equity markets

2 Provides the opportunity to capitalize on Indias high paced growth

3 Supported by a strong invest ment management team at Axis Mutual Fund

4 Suitable for an investment horizon of 5 Years or more

5 With no entry load

6 Easy Call facility available

Axis Long Term Equity Fund:

An Open-ended Equity-Linked Saving Scheme with a 3 Year lock in.

To generate income and long term capital appreciation from a diversified portfolio of

predominantly equity and equity related securities.

Key Features

1. A diversified equity fund that invest primarily in the Indian equity markets

2. Provides the opportunity to capitalize on Indias high paced growth

3. Also provides tax benefits under section 80C of the Income Tax Act, 1961

4. Lock-in period of only 3 years is the lowest amongst all section 80C options available

today

5. Suitable for an investment horizon of 5 Years or more.


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6. With no entry load

7. Flexibility to invest across market caps in the high growth stocks

8.

Easy Call facility available

Axis Midcap Fund:

An open-ended Equity Scheme

To achieve long term capital appreciation by investing predominantly in equity and equity

related instruments of mid size companies. The focus of the fund would be to invest in relatively

larger companies within this category.

Key Features

1 An equity fund that invest primarily in midsized companies to capitalize on their fast paced

growth

2 Amongst the midsized Companies, it has preference for the largest once that carry relatively

lower risk

3 it is suitable for an investment horizon of 5 years or more

4 it is suitable when you want to plan for bigger home, better holidays, bigger cars, etc.

Axis Focused 25 Fund

An Open-ended Equity Scheme

Axis Focused 25 Fund that attempts to unearth and invests exclusively in just these quality

companies. The reassurance of quality companies who have not just weathered storms over time

but prospered and bloomed even in adverse times.

Key Features

1 it is suitable for an investment horizon of 5 years or more

2 Focus in the best ideas at any point of time


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3 Nurtures companies over their business cycle without being affected by short term market

volatility

4 Professional fund management with established track record

5 With no entry load

Axis Liquid Fund:

An open-ended Liquid Scheme

To provide a high level of liquidity with the reasonable returns commiserating with low risk

through a portfolio of money market and debt securities.

Key Features

1 An extremely low risk fund for suitable for an investment horizon of 1 day90 days

2 Returns are calculated for the number of days you remain invested

3 No entry or exit loads

4 High liquidity under circumstance, we will endeavor to ensure that an investors gets his

money back one day after putting in a valid redemption request

Axis Treasury Advantage Fund:

An Open-ended Debt scheme

To provide optimal returns and liquidity to the investors by investing primarily in a mix of

money market and short term debt instruments which results in a portfolio having marginaly

higher maturity as compared to liquid fund compred to a liquid fund at the same time

maintaining a balance between safety and liquidity.

Key Features

1. A low risk fund suitable for an investment horizon of 1 day to 90 days


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2. Returns are calculated for the number of days you remain invested

3. No entry or exit loads

4. High liquidityunder normal circumstance, we will endeavor to ensure that an investors

gets his money back one day after putting in a valid redemption request

5. Tax efficient as dividends are tax- free in your hands (post deducting of 14.1625%

dividend distribution tax for individual investorsinclusive of cess and surcharge)

Axis Short Term Fund:

An open-ended Debt Scheme

To Generate stable returns with a low risk strategy while maintaining liquidity through a

portfolio comprising of debt and money market instruments.

Key Features

1. A low risk fund suitable for an investment horizon of 6 months or more

2. Aims to provide stable returns by investing in debt and money market instruments.

3. Returns are calculated for the number of days you remain invested

4. Easy Call facility available

5. High liquidityunder normal circumstance, we will endeavor to ensure that an investors

gets his money back one day after putting in a valid redemption request.

6. Tax efficient as dividends are tax- free in your hands (post deducting of 14.1625%

dividend distribution tax for individual investorsinclusive of cess and surcharge)

Axis Dynamic Bond Fund:

An open-ended Debt Scheme

To generate optimal returns while maintaining liquidity through active management of a

portfolio of debt and money market instruments.

Key Features

1. A low risk fund suitable for an investment horizon of 1year or more


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2. Dynamic asset allocation policy across fixed income asset

3. Seeks to exploit market opportunities & manage risk

4. Able to invest across all segments of fixed income

5. Flexibility to invest only in high conviction ideas.

6. Does not track benchmarks, i.e. can be invested in money market during rising rate

environment.

FUTURE PLANS

Future of mutual Funds in India

Financial experts believe that the future of Mutual Fund in India will be very bright .AUM of 41

mutual fund houses in India rose to Rs 681,708 core at the end of March, 2011 and Rs 664,824

core in 2012, according to AMFI data. In the coming 10 years the annual composite growth rate

is expected to go up by 13.4%. Since the last 5 years, the growth rate was recorded as 9%

annually. Based on the current rate of growth, it can be forecasted that the mutual fund assets

will be double by 2015.


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Mutual Funds in India

AIG Global Investment Group Mutual Fund

Axis Mutual Fund

Baroda Pioneer Mutual Fund

Benchmark Mutual Fund

Bharti AXA Mutual Fund

Birla Sun Life Mutual Fund

BNP Paribas Mutual Fund

Candara Robeco Mutual Fund

Daiwa Mutual Fund

DBS Chula Mutual Fund Deutsche Mutual Fund

DSP Black Rock Mutual Fund

Edelweiss Mutual Fund

Escorts Mutual Fund

Fidelity Mutual Fund

Fortis Mutual Fund

Franklin Templeton Mutual Fund

HDFC Mutual Fund

HSBC Mutual Fund

ICICI Prudential Mutual Fund

IDFC Mutual Fund

ING Mutual Fund

JM Financial Mutual Fund

JP Morgan Mutual Fund

Kotak Mahindra Mutual Fund

L&T Mutual Fund

LIC Nomura Mutual Fund

Lotus India Mutual Fund

Mirae Asset Mutual Fund
http://www.thinkrupee.com/mtfi-india/index.phphttp://www.thinkrupee.com/mutual-fund/aig-global-investment-group-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/axis-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/bob-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/benchmark-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/bharti-axa-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/birla-sun-life-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/bnp-paribas-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/canbank-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/daiwa-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/dbs-chola-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/deutsche-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/dsp-merrill-lynch-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/edelweiss-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/escorts-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/fidelity-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/fortis-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/franklin-templeton-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/hdfc-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/hsbc-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/prudential-icici-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/standard-chartered-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/ing-vysya-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/jm-financial-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/jp-morgan-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/kotak-mahindra-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/landt-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/lic-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/lotus-india-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/mirae-asset-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/mirae-asset-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/lotus-india-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/lic-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/landt-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/kotak-mahindra-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/jp-morgan-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/jm-financial-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/ing-vysya-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/standard-chartered-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/prudential-icici-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/hsbc-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/hdfc-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/franklin-templeton-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/fortis-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/fidelity-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/escorts-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/edelweiss-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/dsp-merrill-lynch-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/deutsche-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/dbs-chola-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/daiwa-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/canbank-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/bnp-paribas-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/birla-sun-life-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/bharti-axa-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/benchmark-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/bob-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/axis-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/aig-global-investment-group-mutual-fund.phphttp://www.thinkrupee.com/mtfi-india/index.php


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Morgan Stanley Mutual Fund

Motilal Oswal Mutual Fund

Pramerica Mutual Fund

Principal Mutual Fund

Quantum Mutual Fund

Reliance Mutual Fund

Religare Mutual Fund

Sahara Mutual Fund

SBI Mutual Fund

Sundaram Mutual Fund

Tata Mutual Fund

Taurus Mutual Fund

UTI Mutual Fund
http://www.thinkrupee.com/mutual-fund/morgan-stanley-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/motilal-oswal-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/pramerica-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/principal-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/quantum-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/reliance-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/religare-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/sahara-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/sbi-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/sundaram-bnp-paribas-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/tata-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/taurus-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/uti-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/uti-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/taurus-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/tata-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/sundaram-bnp-paribas-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/sbi-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/sahara-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/religare-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/reliance-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/quantum-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/principal-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/pramerica-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/motilal-oswal-mutual-fund.phphttp://www.thinkrupee.com/mutual-fund/morgan-stanley-mutual-fund.php


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CHAPTER 3

NEED,OBJECTIVES,SCOPE OF THE

STUDY


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OBJECTIVES OF THIS STUDY:

To have in-depth about the mutual fund industry particularly Axis bank.

To check and analyze the perception of the investor of mutual funds.

To understand the various attributes regarding risk, rate of return and period of

investment pertaining to mutual funds.


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CHAPTER 4

RESEARCH DESIGN


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RESEARCH DESIGN

The study used an Descriptive and Exploratory research design.

RESEARCH METHODOLOGY

In order to fulfill the desired objectives the analysis makes use of both primary and secondary

data.

To carry on these projects I have prepared the list of 30 investors who invest in mutual fund in

different AMCs. To compare equity schemes of the companies I have taken 2 companies.

Following AMCs are taken into consideration:-

HDFC Mutual Fund

DATA COLLECTION

Primary Data Collection: The primary data was collected by means of questionnaire and

analysis was done on the basis of response received from the customers.

Secondary Data Collection: The Secondary data refer to those data which are gathered for

some other purpose and are already available in the internal records and commercial, trade, or

Government Publications. In my project, going through various newspapers, E-magazines, E-

journals and web sites for collecting secondary data.

SOURCE OF DATA

In order to fulfill the desired objectives the analysis makes use of both the primary and secondary

data. Questionnaires and observation method have been used to collect the primary data .

Various publications have been analyses to get the thorough knowledge. The 30 respondents

were mainly salaried persons, professionals and self-employed persons.

Sample size:-

Keeping in mind all the constraints 30 respondents were selected from Axis Bank.


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SAMPLING TECHNIQUE: - CONVENIENT SAMPLING

Convenience sampling is a non-probability sampling technique where subjects are selected

because of their convenient accessibility and proximity to the researcher.


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CHAPTER 5

DATA ANALYSIS AND

INTERPRETATION


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On the basis of my research I found the following results.

1. Are you aware of mutual fund?

Particulars No. of Respondents %age

Yes 26 87

No 4 13

Total 30 100

INTERPRETATION:

According to this chart it is shown that 87% of respondents are aware of Mutual Fund and

13% of respondents are not aware about Mutual Fund.

No of Respondents

yes

no


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2.While investing in mutual funds what would you expect most?


Returns Record 11 37

Scheme Type 10 33

Brand Name 9 30

Total 30 100

INTERPRETATION:

According to this graph it is shown that 37% of respondents are expect Return record while

investing in mutual fund.

0

5

10

15

Returns

Record

Scheme Type Brand Name

No of Respondents

No of Respondents


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3.In what kind of investment scheme would you like to make the investment?


Mutual Funds 11 37

Banks F.D. 12 40

Insurance 2 7

Bonds 5 16

Total 30 100

INTERPRETATION;

This question relates to in which scheme investment is made and 40% of respondents make

investment in Bank FD and 37% of respondents make investment in Mutual Fund.

0 2 4 6 8 10 12

Mutual Funds

Banks F.D.

Insurance

Bonds

No of Respondents

No of Respondents


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4. Do you have you an idea about different mutual fund available in market? Choose one

Particular No. of Respondents %age

AXIS mutual fund 11 37

SBI mutual fund 10 33

HDFC mutual fund 6 20

TATA mutual fund 3 10

Total 30 100

INTERPRETATION:

According to this chart it is shown that 37% of respondents have idea about AXIS Mutual

Fund and 33% of respondents have idea about SBIMF.

0

2

4

6

8

10

12

AXIS mutual

fund

SBI mutual

fund

HDFC mutual

fund

TATA mutual

fund

No of Respondents

No of Respondents


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5.Which Scheme you will prefer most in mutual fund investment?

Particular No. of Respondents %age

Balanced scheme 3 10

Equity Schemes 16 53

Income Schemes 7 24

Tax-Saving Scheme 4 13

Total 30 100

INTERPRETATION:

According to this chart it is shown that 53% of respondents prefer in Equity scheme of

Mutual Fund.

0 5 10 15 20

Balanced scheme

Equity Schemes

Income Schemes

Tax-Saving Scheme

No of Respondents

No of Respondents


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6.DO you consider mutual fund investment safe as compare to other schemes?


Yes 18 60

No 12 40

Total 30 100

INTERPRETATION:

According to this chart it is shown that 60% of respondents are consider Mutual Fund

scheme to be safe scheme as compare to other schemes.

No. Of Respondents

Yes

No


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7.Which mutual fund do you consider as the best?


AXIS mutual fund 9 30

SBI mutual fund 17 56

HDFC mutual fund 2 7

TATA mutual fund 2 7

Total 30 100

INTERPRETATION:

0%

10%

20%

30%

40%

50%

60%

AXISMF SBIMF HDFCMF TATAMF

No. Of Respondents

No. Of Respondents


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This question relates to which Mutual Fund is to be best and 56% of respondents consider

SBIMF to be best and 30% of respondents consider AXIS Mutual Fund to be best.

8.Which parameter you will consider to judge the mutual fund as the best?


Brand image of mutual fund 1 3

Broker service 4 13

Regular returns 6 20

Risk involved 8 27

Rate of return 11 37

Total 30 100

INTERPRETATION:

0

5

10

15

20

25

30

Brand

Image of

mutualfund

Broker

service

Regular

returns

Risk

involved

Rate of

return

Total

No of respondents

No of respondents


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According to this chart it is shown that 37% of respondents will consider higher rate of return in

Mutual Fund and 27% of respondents will consider risk because higher the risk higher will be

profit.

9.How long you are investing in mutual funds (Please tick):-


Less than 1 year 3 10

1 year up to 2 year 7 23

2 year up to 3 year 8 27

3 years or more 12 40

Total 30 100

INTERPRETATION:

0 2 4 6 8 10 12

Less than 1 year

1 year up to 2 year

2 year up to 3 year

3 years or more

No of repondents

No of repondents


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This question relates to for how long period of investment will make in Mutual Fund and

40% of respondents will invest for 3 years or more.

10.How important are the following objectives/parameters of investing in mutual funds.

Please respond with a tick against the level of importance:-

(A) BETTER LIQUIDITY

Particulars No. of Respondents Percentage

Most important 3 10

Important 11 36.67

Neutral 14 46.67

Somewhat 2 6.67

Not important 0 0

Total 30 100%


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INTERPRETATION:

According to this chart it is shown that for 46.67% of respondents better liquidity is neutral.

(B) CAPITAL APPRECIATION:


Most important 1 3.33

Important 7 23.33

Neutral 22 73.33Somewhat 0 0

Not important 0 0

Total 30 100%

0

2

4

6

8

10

12

14

16

Most important Important Neutral Somewhat Not important

No. Of Respondents

No. Of Respondents


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INTERPRETATION:

According to this chart it is shown that for 73.33% of respondents capital appreciation is

neutral in Mutual Fund.

(c) TAX BENEFIT:

Particulars No. of Respondents % age

Most important 6 20

Important 10 33.33

Neutral 14 46.66

Somewhat 0 0

Not important 0 0

Total 30 100

0

5

10

15

20

25

Most

important

Important Neutral Somewhat Not

important

No. of Respondents

No. of Respondents


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INTERPRETATION:

According to this chart it is shown that for 46.66% of respondents tax benefits is neutral

in Mutual Fund.

(D) SAFETY OF CAPITAL:

Particulars No. of Respondents % age

Most important 18 60

Important 8 26.67

Neutral 4 13.33

Somewhat 0 0

Not important 0 0

Total 30 100

0

2

4

6

8

10

12

14

16

Most

important

Important Neutral Somewhat Not important

No. of Respondents

No. of Respondents


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INTERPRETATION;

According to this chart it is shown that for 60% of respondents safety of capital is most

important in Mutual Fund.

11. Which source is consider as most important for getting information regarding mutual

funds? (Please tick):-


Newspaper 8 27

Magazine 0 0Television 3 10

Interne 10 33

Brokers 9 30

Total 30 100

0

2

4

6

8

10

12

1416

18

20

Most

important

Important Neutral Somewhat Not important

No. of Respondents

No. of Respondents


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INTERPRETATION:

According to this chart it is shown that 33% of respondents gets information for Mutual

Fund from internet source.

0

1

2

3

4

5

6

7

8

9

10

Newspaper Magazine Television Internet Brokers

No of respondents

No of respondents


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12. Following are the selection criteria relating to investor services provided by mutual

fund companies. How important they are to you in mutual find selection?


Scheme Characteristics 10 33

Easier Investing Process 2 7

Disclosure of NAV 15 50

Prompt Service 3 10

Total 30 100

INTERPRETATION:

According to this chart it is shown that 50% of respondents suggest that disclosure of

NAV is the main selection criteria relating to Mutual Fund.

0 5 10 15

Scheme Characteristics

Easier Investing Process

Disclosure of NAV

Prompt Service

No of respondent

No of respondent


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CHAPTER 5

CONCLUSION


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Objective of the project is to know the investors perspective while investing in different AMCs.

For this survey of 30 respondents has been covered in Jalandhar region. With the help of a

structured questionnaire following response has been received.

There are different sources of avenues available to investors to invest. Out of 20

respondents it is seen. Most of them had invested in equities and mutual fund. The

tradition of blocking the money in post office, provident fund has been changed to

investing in avenues which guarantees good return and more liquidity.

In case of mutual fund newspaper, magazines play most reliable source of information

for taking investment decision this shows that people are becoming more aware by

themselves their dependency on agents has decreased and they look for their own

sources. Today online trading is on demand most of the respondents consider websites

as a most reliable and informative source to them. Websites like moneycontrol.com.

Capital appreciation, tax benefits and safety are the most important factors for investors

while doing investment.


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\RECOMMENDATIONS and SUGGESTIONS

Customer education of the salaried class individuals is far below standard. Thus Asset

Management Companys need to create awareness so that the salaried class people

become the prospective customer of the future.

Early and mid earners bring most of the business for the Asset Management Companys.

Asset Management Companys thus needed to educate and develop schemes for the

persons who are at the late earning or retirement stage to gain the market share.

Returns record must be focused by the sales executives while explaining the schemes to

the customer. Pointing out the brand name of the company repeatedly may not too

fruitful.

The target market of salaried class individual has a lot of scope to gain business, as they

are more fascinated to Mutual Funds than the self employed.

Schemes with high equity level need to be targeted towards self employed and

professionals as they require high returns and are ready to bear risk.

The choice range of salaried class individuals is too wide, thus the exact requirement of

customer must be assessed before advising him for any scheme.

The major target market for the Asset Management Companys is the personswith the

income range of 2 to 4 laces and they must be approached to gain investments.

High end customers with a income of above 4 laces are more interested in saving taxes

and hence tax saving schemes fit to their requirement.

Low end customers require more of fixed returns and they cant take high risk because of

limited financial resources. Thus income schemes need to be recommended for this

segment.

Balanced schemes must be focused while explaining the schemes to the income segment

of 4 lacs to 6 lacs.

During my research I found that the consumer wants a quick grievance solving

mechanism. Consumer doesnt want to come to the office/branch for solving the

grievance. So the Asset Management Companys should have to work upon that.


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QUESTIONNAIRE

This questionnaire is an attempt to understand the behavior of individual mutual fund investor,

and is designed as a part of the post graduate study of the management field. This is entirely an

academic exercise and the results of this exercise will not be disclosed anywhere. The entire

contents of the questionnaire will be used for the academic purpose only. The questionnaire willtake approximately 10-15 minutes. Please support this study with your unbiased responses. Your

support is highly appreciable and will be gratefully acknowledged in the study.Name of the Investor (optional):-________.

1.

Are you aware about mutual fund?Yes No

2.

While investing in mutual funds what would you expect most?

Returns Record

Scheme Type

Brand Name

3.

In what kind of investment scheme would you like to make the investment?

Mutual Funds

Banks F.D.

Insurance

Bonds

4.

Do you have you an idea about different mutual fund available in market?

AXIS mutual fund

SBI mutual fundHDFC mutual fund

TATA mutual fund

5.

Which Scheme you will prefer most in mutual fund investment?

Balanced Scheme

Equity Schemes

Income Schemes

Tax-Saving Schemes

6.

DO you consider mutual fund investment safe as compare to other schemes?Yes No

7.

Which mutual fund do you consider as the best?


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AXIS mutual fund

SBI mutual fund

HDFC mutual fund

TATA mutual fund

8.

Which parameter you will consider to judge the mutual fund as the best?

Brand image of mutual fund

Broker service

Regular returns

Risk involved

Rate of return

9.

How long you are investing in mutual funds (Please tick):-

Less than 1 year

1 year up to 2 year

2 year up to 3 year

3 years or more

10.

How important are the following objectives/parameters of investing in mutual funds. Please

respond with a tick against the level of importance:-

Most important Important Neutral Somewhat Not important

Better Liquidity

Capital Appreciation

TaxBenefits

Safety of Capital

11.

Which source is consider as most important for getting information regarding mutual funds?

(Please tick):-

Newspaper

Magazine

Television

Internet

Brokers


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12.

Following are the selection criteria relating to investor services provided by mutual fundcompanies. How important they are to you in mutual find selection?

Scheme characteristics

Easier investing process

Disclosure of NAV

Prompt service

13.

Your Brief Demographic Profile:-

Gender: Male ________.

Female ________.

Educational Qualification(please tick):-

Less than graduation ________.

Graduation ________.Post graduation ________.Doctorate ________.

Occupation Status:-

Salaried person ________.Self-employed ________.Professional ________.

Income status:-

Less than 2 lacs ________.2 to 4 lacs ________.Above 4 lacs ________.

Age-group:-

41-55 ________.31-40 ________.25-30 ________.


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BIBLIOGRAPHY

References to book:-

AMFI Mutual Fund workbook, second edition, December 2001

References to Web page:-

http://www.moneycontrol.com/stocksmarketsindia/

http://www.birlasunlife.com/birlasunlife/index.htmhttp://new.valueresearchonline.com/

http://www.mutualfundsindia.com/

http://www.Axis.com

http://www.Axis mutualfunds.com
http://www.moneycontrol.com/stocksmarketsindia/http://www.moneycontrol.com/stocksmarketsindia/http://www.birlasunlife.com/birlasunlife/index.htmhttp://www.birlasunlife.com/birlasunlife/index.htmhttp://new.valueresearchonline.com/http://new.valueresearchonline.com/http://www.mutualfundsindia.com/http://www.mutualfundsindia.com/http://www.mutualfundsindia.com/http://new.valueresearchonline.com/http://www.birlasunlife.com/birlasunlife/index.htmhttp://www.moneycontrol.com/stocksmarketsindia/

Final Project of Vaishali

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