Report on

Financial planning of prospective in investment opportunity

Submitted by : Sovran singh yadav Indira School of business studies ( PGDM 2010-2012 )

Acknowledgement
I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to shri Ashutosh mangal ji for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. I would like to express my gratitude towards my parents & member of karvy stock broking ltd. for their kind co-operation and encouragement which help me in completion of this project. I would like to express my special gratitude and thanks to industry persons for giving me such attention and time. My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.

PREFACE

THE CORPORATE PROGRAM of MBA (Marketing) course is a well structured and integrated programme. The course of management gives a practical knowledge in our study course. Industries give us much information about the different product and services we use in our day to day life. It is highly said that practice makes a man perfect the summer project training which is a part of MBA to get a practical understanding and training of the business management. Thus the industrial training which is a part of MBA (Marketing) course helps the student to get the knowledge about the actual environment of an organization. Karvy Stock Broking ltd. is one of such company dealing in Share market Derivatives, Commodities, Mutual fund IPO distribution with almost branches in overall India. It involved the study of marketing activities of the organization. I have under taken industrial training in Karvy Stock Broking Ltd. At Indore as a part of my M.B.A. (marketing) Course curriculum and I thus, present a project report on it at the best of my ability knowledge and work done.

The research is on the topic financial planning of prospective in investment opportunity.

DECLARATION

I hereby declare that the Project entitled Finance planning of client prospective in investment opportunityor any part thereof has not been submitted earlier to any Institution or University for the award of any other Diploma or Degree, not the data has been derived from any thesis of the University.

EXECUTIVE SUMMARY
Indias economy is highly developing. The development is taken place due to the growth in the financial system. This financial system provides the background to various investors regarding varied options to invest. Thus, development of the economy depends on how these investors invest for the well being in long run.

People from service class prefers safety of income plus the regular income as well as tax benefits while on the other hand Professional and Businessman focus on high return with some risk. For growth and development of the Stock Market Industry, the misconception regarding Share Market should be removed & the awareness for the same should be made. Main purpose of investment is returns and liquidity, commodity market is less preferred by investors due to lack of awareness. The major findings of this study are that people are interested to invest in stock market but they lack knowledge.

This project has been a great learning experience for me; at the same time it gave me enough scope to implement my analytical ability. This gives an insight about the share market, mutual funds and its various aspects. It is purely based on whatever I learned at karvy. One can have a brief knowledge about share market, mutual funds
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and all its basics through the project. Other than that the real servings come when one moves ahead. Some of the most interesting questions regarding share market and mutual funds have been covered. All the important terms of share market and mutual fund are describe. All the topics have been covered in a very systematic way. The language has been kept simple so that even a layman could understand.

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Contents

Page No

1 2

Introduction Industry / Company overview

1 10

3 4 5

Organization structure

Review of Literature/ Theoretical Background

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6 7 8 9 10 11
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Objectives Research Methodology Data Analysis , Results and Interpretation Conclusions Limitations of the project Recommendations Bibliography

12 13 14 18 18 18 18

1. Introduction Everyone wants to be rich and wealthy. But to amass wealth and make it grow, it is necessary for one to invest wisely. Invest wisely is not the whole to earn Profits but to gain the aggregate wealth in the long term for this purpose investment planning is going to be a better tool. Without planning investment is like an untamed animal you wouldnt know how long they are with you, like wise everybody needs to plan there investments smartly. Financial planning has become even more important after the recessionary storms all over the world. Millions of people have faced severe difficulties with unpaid liabilities due to extreme hardship caused by the recession. Many of these defaulters even failed to pay back and became bankrupt. After such catastrophes, people are now on tight budgets everywhere. Thus, from the domestic frontiers to the national level, everywhere people are stressing more on financial budgeting to lower the cost. Moreover, the Federal government is encouraging low cost living so that the pressure of unpaid liabilities marginalize. People, who have been the worst sufferers, are taking consultation of the credit counseling to come out from their indebted conditions. The counselors at the same time are stressing on the proper financial planning thereby.

1.1. What is the project The project is about to view various perspectives of the investment industry 1.2. Definition and purpose of the project Investment industry provides the way to earn and gain on the capital invested over a period of time. the purpose of the project is to analysis the various investment sectors in the market and to obtain the investment opportunity. 1.3. Scope of the project Our scope is to study the market conditions and understand potential investment options to the investor and to look after the trends of the market so that better utilization can be made of hidden investment opportunities in the various sectors thereof. 1.4. Salient Contributions of the project 8 knowledge of the best

Understanding capital market is not the easy thing to be forecast with the help of the project we gave a try to forecast the trends and positions of the various stocks in capital market. 1.5. Outline of the project report Our objective under this project is to understand the market conditions. Understanding market is not an easy task although the trends may be forecasted. Forecasting under this project can be done with the various market tools like market trend analysis, financial reports etc. the project makes a suggesting effort in determination of the market conditions it does not provide any assurance but provides a supporting hand for financial planning.

Industry / Company overview Evolution OVERVIEW OF INDUSTRY

History of the Indian Mutual Fund Industry

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

First Phase 1964-87

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

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

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI 10

Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004 crores.

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

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets

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of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44, 541 crores of assets under management was way ahead of other mutual funds.

Fourth Phase since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes.

The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth.

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COMPANY DETAILS

Brief history
Karvy was started by a group of five chartered accountants in 1979 at Hydrabad. At initial stage it was very small in size. It was started with a capital of Rs. 1, 50,000. In starting it was only offering auditing and taxation services. Later, on The partners decided to offer, other than the audit services, value added services like Financial Product Distribution, Investment Advisory Services, Demat Services, Corporate Finance, Insurance etc to their clients. The first firm in the group, Karvy Consultants Limited was incorporated on 23rd July, 1983. In a very short period, it became the largest Registrar and Transfer Agent in India. This business was spun off to form a separate joint venture with Computershare of Australia, in 2005. Karvys foray into stock broking began with marketing IPOs, in 1993. Within a few years, Karvy began topping the IPO procurement league tables and it has consistently maintained its position among the top 5. Karvy was among the first few members of National Stock Exchange, in 1994 and became a member of The Stock Exchange, Mumbai in 2001. In January 1998, Karvy became first Depository Participant in Andhra Pradesh. Today Karvy is among the top 5 Depositary Participant in India. While the registry business is a 50:50 Joint Venture with Computershare of Australia, we have equity participation by ICICI Ventures Limited and Barings Asia Limited, in Karvy Stock Broking Limited. For a snapshot of our organization structure, please click here. Karvy has always believed in adding value to services it offers to clients. A topnotch research team based in Mumbai and Hyderabad supports its employees to advise clients on their investment needs. With the information overload today, Karvys team of analysts help investors make the right calls, be it equities, mf, insurance.

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On a typical working day Karvy: Has more than 25,000 investors visiting our 575 offices. Publishes / broadcasts at least 50 buy / sell calls Attends to 10,000+ telephone calls Mails 25,000 envelopes, containing Annual Reports, dividend cheques / advises, allotment / refund advises. Executes 150,000+ trades on NSE / BSE Executes 50,000 debit / credit in the depositary accounts Advises 3,000+ clients on the investments in mutual funds

KARVY Stock Broking Limited is a member of: National Stock Exchange (NSE) Bombay Stock Exchange (BSE) Hyderabad Stock Exchange (HSE)

Structure of KARVY
Karvy ranks among the top player in almost all the fields it operates. Karvy Computershare Limited is Indias largest Registrar and Transfer Agent with a client base of nearly 500 blue chip corporate, managing over 2 crore accounts. Karvy Stock Brokers Limited, member of National Stock Exchange of India and the Bombay Stock Exchange, ranks among the top 5 stock brokers in India. With over 6,00,000 active accounts, it ranks among the top 5 Depositary Participant in India, registered with NSDL and CDSL. Karvy Comtrade, Member of NCDEX and MCX ranks among the top 3 commodity brokers in the country. Karvy Insurance Brokers is registered as a Broker with IRDA and ranks among the top 5 insurance agent in the country. Registered with AMFI as a corporate Agent, Karvy is also among the top Mutual Fund mobilize with over Rs. 5,000 crores under management. Karvy Realty Services, which started in 2006, has quickly established itself as a broker who adds value, in the realty sector. Karvy Global offers niche off shoring services to clients in the US. Karvy has 575 offices over 375 locations across India and overseas at Dubai and New York. Over 9,000 highly qualified people staff Karvy. The company service over 16 million individual investors, 180 corporate and handle corporate disbursements that exceed Rs.2500 Crores.

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Structure according to the Products offered by Karvy:

PRODUT HEADS HEA Realty

Debt divisio n

Mutua l funds

Insura nce brokin g

comm odities

Stock brokin g

Depos itory partici pant

Merch ant & inv.ba nking

SERVICES OFFERED BY KARVY STOCK BROKING LTD.

Every investor has unique needs. So Karvy Stock Broking Ltd. has created a wide range of services, where customer will always find exactly what he is looking for. These hand-selected planners are made up of professionals with the expertise and experience to meet someones unique financial needs. These financial planners reflect commitment to provide financial advice based solely on clients objectives without traditional conflicts of interest.

Planning Portfolio by drawing up investments plans with short term, medium and long-term goals.

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Investment advice on product ranging from Fixed Investments and Life Insurance to highly volatile Shares and Derivatives.

Avail Tax Saving, Retirement Planning and VRS Investments Services.

Equity and Derivative Trading on NSE and BSE.

Trading in commodities.

Make Investments in IPOs, Mutual Funds and Government of India / Infrastructure Bonds.

And this is all done on basis of unbiased research done by Karvy Stock Broking Ltd. Research Desk. That is why Karvy Stock Broking Ltd. is Your Personal Investment Guide.

As far as Mutual Funds are concern Karvy Stock Broking Ltd. is corporate brokers for following Fund Houses.

Brila Sunlife Mutual Fund Deutsche Mutual Fund Franklin Templeton Mutual Fund HSBC Mutual Fund JM Mutual Fund Principal Mutual Fund Reliance Mutual Fund

Cholamandalam Mutual Fund DSP Merill Lynch Mutual Fund HDFC Mutual Fund ING Vysya Mutual Fund Kotak Mahindra Mutual Fund Prudential ICICI Mutual Fund Standard Chartered Mutual Fund

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SHARE TRADING BY KARVY

1. Stock Broking:
KARVY is working as Capital Market Intermediaries. Stockbrokers are regulated by SEBI [Stock-brokers and Sub-brokers] Regulations, 1992. The stockbroker is a member of the stock exchange. Stockbrokers are the intermediaries who are allowed to trade in securities on the exchange of which they are members. They buy and sell on their own behalf as well as on behalf of their clients. Stockbrokers expand their business by engaging sub-broker. Sub-brokers mean any person not being a member of a stock exchange who acts on behalf of a stock broker as an agent or otherwise for assisting the investors in buying, selling or dealing in securities through such stock-brokers.

2. Demat Services:
Karvy is a depository participant with the National Securities Depository Limited (NSDL) for trading and settlement of dematerialized shares. Depository Participants (DPs) are described as an agent of the depository. They are intermediaries between the depository and the investors. The relationship between the DPs and the depository is governed by an agreement made between the two under Depositories Act. A DP can offer depository-related services only after obtaining a certificate of registration from SEBI. Since Karvy is also in the broking business, investors who use Karvys depository services get a dual benefit. They can use Karvys brokerage services to execute transactions and Karvys depository services to settle them. In Karvy Demat a/c is open in rs.650.Karvy also provide a software with Demat a/c with the help of it you can do online share trading at your home and any other place.

3. Investment Products Distribution:

Company is also concern with the distribution of investment products like (a). Fixed Deposit (b). Bonds (c). IPO (a). Fixed Deposit: KARVY is dealer of 34 fixed deposits of various types which includes fixed deposits of Public Sector, Non Banking Finance, Housing Finance and Manufacturing Companies.

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Facility provided by Karvy for share trading:

1. In Karvy Demat a/c is open in rs.650. it includes Demate + trading charges + one year annual charges. 2. Karvy provide a software with the help of it you can also do online share trading in your home and any other place. 3. Karvy also provide off line services through phone. 4. Karvy also send mobile tips of share market on your mobile phone through sms daily. 5. Karvy mail full information of your share market status on your mail id. 6. Brokerage of Karvy is: in Intraday 3 paisa and in Delivery 30 paisa. 7. Credit limit provided by Karvy in Intraday 8-10 times and in delivery 2-3 times. 8. Karvy also traiding in commodities. Opening charges of commodity a/c is rs.500.

Documents required (Demat a/c):

Proof of identity : 1. One photo 2. PAN card 3. Bank a/c 4. Bank passbook photo copy.

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Share market terms:

1. BSE:
Its full form is Bombay stock exchange. 30 companies are listed in BSE. Those companies whose market capitalization is more are listed in BSE. Sensex is use in BSE. Market capitalization = number of share* price.

2. NSE:
Its full form is National stock exchange. 50 companies are listed in NSE. Those companies whose market capitalization is less are listed in NSE. Nifty is use in NSE. Market capitalization = number of share* price.

3. INTRADAY:
Intraday means purchase a share in a day and sold them immdiatly in a same day.

4. DELIVERY:
Delivery means purchase share in a day and sold them after a long time like 2-3 years or 2-3 months etc. In Delivery you can hold your shares.

5. STOPLOSS:
Stoploss is use when you want to minimize your risk at the time of purchase and sell. It is depend on owner of shares risk bearing capacity.

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KARVY Mutual Fund Services:

Mutual funds: A mutual fund is a professionally-managed firm of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities.in other words we can say that A Mutual Fund is a trust registered with the Securities and Exchange Board of India (SEBI), which pools up the money from individual / corporate investors and invests the same on behalf of the investors /unit holders, in equity shares, Government securities, Bonds, Call money markets etc., and distributes the profits.

Mutual funds have servings for everybody. Whichever type of investor you are, you will surely get a mutual fund meeting your requirements. But investing in mutual funds is no childs play therefore karvy mutual fund advisory services is there to guide in each and every step of investment in mutual funds so that the dream of wealth creation doesnt turns into nightmares. Its offerings includes: products of all the 33 major AMCs, research report about all the existing funds as well as NFOs, customized mutual fund portfolios designed for individual as well as institutional customers, it not only design the portfolios rather it offers continuous portfolio revision too depending on changing market outlook and evolving trends, it further gives access to its online consolidated portfolio statement. Thus karvy with its various offerings makes the investor feel safe in this dynamic environment of the Indian financial market. Karvy Computershare mutual fund services offers investors services, distributor services and client services. It can be said that karvy is dedicated towards providing quality service to all these three facets of the investment process. Karvy being an intermediary is well registered with the Association of Mutual Funds of India (AMFI). KARVY has got the registration no [ARN 0018] for mutual funds, which is mentioned on every form. After the procurement of forms from various AMCs, the forms are passed on to its various zonal and branch offices (as per their requirements) and then further processing is done either directly or through sub-brokers. 20

Mission Statement of Karvy

An organization exists to accomplish something or achieve something. The mission statement indicates what an organization wants to achieve. The mission statement may be changed periodically to take advantage of new opportunities or respond to new market conditions. Karvys mission statement is To Bring Industry, Finance and People together. Karvy is work as intermediary between industry and people. Karvy work as investment advisor and helps people to invest their money same way Karvy helps industry in achieving finance from people by issuing shares, debentures, bonds, mutual funds, fixed deposits etc. Companys mission statement is clear and thoughtful which guide geographically dispersed employees to work independently yet collectively towards achieving the organizations goals.

Vision of Karvy
Companys vision is crystal clear and mind frame very directed. To be pioneering financial services company. And continue to grow at a healthy pace, year after year, decade after decade. Companys foray into IT-enabled services and internet business has provided an opportunity to explore new

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frontiers and business solutions. To build a corporate that sets benchmarks for others to follow.

Karvy Values
a) Integrity c) Reliability e) Understanding g) Excellence b) Responsibility d) Utility f) Unity h) Confidentiality

Behind the Picture: What Customers matter for KARVY?

The underlying picture forming answer for above question is given below.

[Competitive Advantage of Karvy]

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Every year with this picture keeping in mind Karvy accelerate with Recovery, Revival and Reappearance. Karvy has started 2004 on a strong note with the realization to signal some of the challenges it faced previous year. In a competitive market and a branded business, Karvy need to carefully manage itself to avoid down trading or brand shifts by consumers. For Karvy, Indore branch was truly exhilarating because of: Successful implementation of a carefully crafted strategy. Excellence in execution. Immense learning enabling to set up a launch pad for revitalizing itself. Some competitive advantages are long lasting. These are intangible, difficult to replicate and thus more sustainable. Karvy has focused on some of these to gain competitive advantages. There are: Winning culture and a desire to excel in everything Karvy do. Strong meaningful relationships with Customers along with Strategic Partners in which Karvy operate and above all, its own staff.

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Karvy Group Companies

KARVY CONSULTANTS LIMITED

As the flagship company of the Karvy Group, Karvy Consultants Limited has always remained at the helm of organizational affairs, pioneering business policies, work ethic and channels of progress. Having emerged as a leader in the registry business, the first of the businesses that we ventured into, we have now transferred this business into a joint venture with Computershare Limited of Australia, the worlds largest registrar. With the advent of depositories in the Indian capital market and the relationships that we have created in the registry business, we believe that we were best positioned to venture into this activity as a Depository Participant. We were one of the early entrants registered as Depository Participant with NSDL (National Securities Depository Limited), the first Depository in the country and then with CDSL (Central Depository Services Limited). Today, we service over 6 lakhs customer accounts in this business spread across over 250 cities/towns in India and are ranked amongst the largest Depository Participants in the country. With a growing secondary market presence, we have transferred this business to Karvy Stock Broking Limited (KSBL), our associate and a member of NSE, BSE and HSE.

KARVY STOCK BROKING LIMITED

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Member - National Stock Exchange (NSE), The Bombay Stock Exchange (BSE), and The Hyderabad Stock Exchange (HSE). Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely towards attaining diverse goals of the customer through varied services. Creating a plethora of opportunities for the customer by opening up investment vistas backed by research-based advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping the customer create waves in his portfolio and empowering the investor completely is the ultimate goal. It is an undisputed fact that the stock market is unpredictable and yet enjoys a high success rate as a wealth management and wealth accumulation option. The difference between unpredictability and a safety anchor in the market is provided by in-depth knowledge of market Functioning and changing trends.

Distribution of Financial Products

The paradigm shift from pure selling to knowledge based selling drives the business today. With our wide portfolio offerings, we occupy all segments in the retail financial services industry. A 1600 team of highly qualified and dedicated professionals drawn from the best of academic and professional backgrounds are committed to maintaining high levels of client service delivery. This has propelled us to a position among the top distributors for equity and debt issues with an estimated market share of 15% in terms of applications mobilized, besides being established as the leading procurer in all public issues. To further tap the immense growth potential in the capital markets we enhanced the scope of our retail brand, Karvy the Finapolis , thereby providing planning and advisory services to the mass affluent. Here we understand the customer needs and lifestyle in the context of present earnings and provide adequate advisory services that will necessarily help in creating wealth. Judicious planning that is customized to meet the future needs of the customer deliver a service that is exemplary. The market-savvy and the ignorant investors, both find this service very satisfactory.

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The edge that we have over competition is our portfolio of offerings and our professional expertise. The investment planning for each customer is done with an unbiased attitude so that the service is truly customized. Our monthly magazine, Finapolis, provides up-dated market information on market trends, investment options, opinions etc. Thus empowering the investor to base every financial move on rational thought and prudent analysis and embark on the path to wealth creation.

KARVY INVESTOR SERVICES LIMITED

Recognized as a leading merchant banker in the country, we are registered with SEBI as a Category I merchant banker. This reputation was built by capitalizing on opportunities in corporate consolidations, mergers and acquisitions and corporate restructuring, which have earned us the reputation of a merchant banker. Raising resources for corporate or Government Undertaking successfully over the past two decades have given us the confidence to renew our focus in this sector. Our quality professional team and our work-oriented dedication have propelled us to offer value-added corporate financial services and act as a professional navigator for long term growth of our clients, who include leading corporates, State Governments, foreign institutional investors, public and private sector companies and banks, in Indian and global markets. We have also emerged as a trailblazer in the arena of relationships, both at the customer and trade levels because of our unshakable integrity, seamless service and innovative solutions that are tuned to meet varied needs. Our team of committed industry specialists, having extensive experience in capital markets, further nurtures this relationship Our financial advice and assistance in restructuring, divestitures, acquisitions, de-mergers, spin-offs, joint ventures, privatization and takeover defense mechanisms have elevated our relationship with the client to one based on unshakable trust and confidence.

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KARVY Computershare Private Limited

We have traversed wide spaces to tie up with the worlds largest transfer agent, the leading Australian company, Computer share Limited. The company that services more than 75 million shareholders across 7000 corporate clients and makes its presence felt in over 12 countries across 5 continents has entered into a 50-50 joint venture with us. With our management team completely transferred to this new entity, we will aim to enrich the financial services industry than before. The future holds new arenas of client servicing and contemporary and relevant technologies as we are geared to deliver better value and foster bigger investments in the business. The worldwide network of Computer share will hold us in good stead as we expect to adopt international standards in addition to leveraging the best of technologies from around the world. Excellence has to be the order of the day when two companies with such similar ideologies of growth, vision and competence, get together.

KARVY GLOBAL SERVICES LIMITED

The specialist Business Process Outsourcing unit of the Karvy Group. The legacy of expertise and experience in financial services of the Karvy Group serves us well as we enter the global arena with the confidence of being able to deliver and deliver well. Here we offer several delivery models on the understanding that business needs are unique and therefore only a customized service could possibly fit the bill. Our service matrix has permutations and combinations that create several options to choose from. Be it in re-engineering and managing processes or delivering new efficiencies, our service meets up to the most stringent of international standards. Our outsourcing models are designed for the global customer and are backed by sound corporate and operations philosophies, and domain expertise. Providing productivity improvements, operational cost control, cost savings, improved accountability and a whole gamut of other advantages. We operate in the core 27

market segments that have emerging requirements for specialized services. Our wide vertical market coverage includes Banking, Financial and Insurance Services (BFIS), Retail and Merchandising, Leisure and Entertainment, Energy and Utility and Healthcare.

Karvy Comtrade Limited

At Karvy Commodities, we are focused on taking commodities trading to new dimensions of reliability and profitability. We have made commodities trading, an essentially age-old practice, into a sophisticated and scientific investment option. Here we enable trade in all goods and products of agricultural and mineral origin that include lucrative commodities like gold and silver and popular items like oil, pulses and cotton through a well-systematized trading platform. Our technological and infrastructural strengths and especially our street-smart skills make us an ideal broker. Our service matrix is holistic with a gamut of advantages, the first and foremost being our legacy of human resources, technology and infrastructure that comes from being part of the Karvy Group.

Karvy Insurance Broking Limited

At Karvy Insurance Broking Limited., we provide both life and non-life insurance products to retail individuals, high net-worth clients and corporates. With the opening up of the insurance sector and with a large number of private players in the business, we are in a position to provide tailor made policies for different segments of customers. In our journey to emerge as a personal finance 28

advisor, we will be better positioned to leverage our relationships with the product providers and place the requirements of our customers appropriately with the product providers. With Indian markets seeing a sea change, both in terms of investment pattern and attitude of investors, insurance is no more seen as only a tax saving product but also as an investment product. By setting up a separate entity, we would be positioned to provide the best of the products available in this business to our customers.

KARVY REALTY&SERVICES(INDIA)Limited

KARVY Realty & Services (India) Limited (KRSIL) is engaged in the business of real estate and property services offering value added property services and offers individuals and establishments a myriad of options across investments, financing and advisory services in the realty sector. KARVY Realty & Services (India) Limited Take a Realty Byte !!! Promoted by the KARVY Group of companies, Indias largest integrated financial services company. KARVY Realty & Services India Limited carries forward its legacy of trust and excellence in investor and customer services delivered with a passion for services and the highest level of quality that align with global standards. KARVY Realty & Services (India) Limited welcomes you to take a reality check on realty options that you can be rest assured of and of course profit from.

PERFORMANCE OF KARVY
WHERE KARVY STAND IN THE MARKET?
KARVY is a legendary name in financial services, Karvys credit is defined by its mission to succeed, passion for professionalism, excellent work ethics and customer centric values.

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Today KARVY is well known as a premier financial services enterprise, offering a broad spectrum of customized services to its clients, both corporate and retail. Services that KARVY constantly upgrade and improve are because of companys skill in leveraging technology. Being one of the most techno-savvy organizations around helps company to deliver even more cost effective financial solutions in the shortest possible time. What bears ample testimony to Karvys success is the faith reposed in company by valued investors and customers, all across the country. Indeed, with Karvys wide network touching every corner of the country, even the most remote investor can easily access Karvys services and benefit from companys expert advice.

Some key points about KARVY :

Every 50th Indian is serviced by karvy. Every 20th trade in stock is done by Karvy. Indians no.1 registrar and transfer agent. Every 6th investor in India invest through karvy. Every 10th Demat account is held at Karvy.

KARVYS PRODUCT & SERVICES AN OVERVIEW

SERVICES OF KARVY Stock broking Demat services Investment product distribution Investment advisory services Corporate finance & Merchant banking Insurance Broking services Mutual fund services IT enabled services Registrars & Transfer agents Loans Reality services Portfolio management services BPO & KPO services 30

Corporate advisor Currency derivatives Bonds and Deposits Depository services Commodities Investment Banking Advisory service

PRODUCT OF KARVY
Now the Karvy groups brings this expertise to investors, with KARVY IZONE + . It is a powerful Expert Advisory based trading system for those who are relatively new to online investing. A unique integrated account, which integrates your securities, online stock-broking, and Demat accounts. A comprehensive trading service, which allows you to invest in equities, mutual funds, SIP, commodity and derivatives. KARVY I -Zone+ trading platform allows you the flexibility of trading on any internet capable system, with access to both the NSE and BSE.

KARVY I-ZONE + ADVANTAGE---1. Free online Stock-Broking and attractive Margin funding option available 2. Free Demat account 3. Free online Commodities Broking account 4. Option to buy unlimited mutual funds or SIP without any transaction charges 5. Loan against securities 6. Regular Portfolio Statement for better planning of future investment 7. Free financial advice to better distribute your assets between Mutual Fund, Equity, Debt, Commodity and Insurance. Free subscription to KARVY Finapolis Magazine

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Competitors of KARVY

KOTAK SECURITIES
Kotak securities ltd is India leading stock broking house with a market share of close to 9% as on 31 march 2007. kotak securities ltd has been the largest in IPO distribution. The company has a full fledged research division involved in macro economic studies sect oral research and company specific equity research combined with a strong and well networked sales force which helps deliver current and up to date market information and news Kotak securities ltd is also a depository participant with national securities depository limited and central depository service limited .providing dual benefits services where in the investor can use the brokerage services of the company for executing the transactions and the depository service for settling them. Kotak securities have 813 outlets servicing more than 315000 customers and a coverage of 277 cities. Kotak securities com the online division of kotak securities limited offers internet broking services and also online IPO and mutual fund investment A Kotak security limited manages assets around 2300 crores of assets under management. The portfolio management service provides top class service catering to the high end of the market. Portfolio management from kotak securities comes as an answer to those who would like to grow from exponentially on the crest of the stock market, with the backing of an expert.

Sharekhan, the retail broking arm of SSKI group and one of the largest stock broking house in the country has won the prestigious awaaz consumer vote 32

awards 2005 for the most preferred stock broking brand in India, in the investment advisors category

Share khan equity related services include trade execution on BSE,NSE derivatives commodities depository services online trading and investment advice ,.sharekhan online trading and investment site www.sharekhan.com was launched in 2000 . Sharekhan Bag round network includes over 250 centers across 123 cities in India and having around 120000 customers and equal number of demat customers.

Sharekhan won the award by vote of customer around the country, as part of India largest consumer study cover 7000 respondents 21 product and service across 21 major cities. the study initiated by awaaz India first dedicated consumer channel and member of the world wide CNBC network and ac Nielsen org marg was aimed at understanding the brand preference of the consumer and to decipher what are the most important loyalty criteria for the consumer in each vertical

In order to select the award recipient spontaneous responses rather than prompted responses were garnered with an intention to glean unbiased preferences. The reason behind the preferences for brands were unveiled by examines the following: Tangible features of product /service Softer, intangible features like imagery, equity driving preference Tactical measures such as promotional /pricing schemes

The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites http://www.indiainfoline.com/and http://www.5paisa.com/ 33

The company has a network of 758 business locations (branches and subbrokers) spread across 346 cities and towns. It has more than 800,000 customers India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients trading in the equities market. It has recently launched its Investment banking and Institutional Broking business.

Religare Enterprises Limited (REL), is one of the leading integrated financial services groups of India. RELs businesses are broadly clubbed across three key verticals, the Retail, Institutional and Wealth spectrums, catering to a diverse and wide base of clients. REL offers a multitude of investment options and a diverse bouquet of financial services and has a pan India reach in more than 1550 locations across more than 460 cities and towns. As part of its recent initiatives, the group has also started expanding globally and has acquired Londons oldest brokerage & investment firm, Hichens, Harrison & Co. plc. Following this acquisition Religare now proposes to operate out of 10 countries. With a view to expand, diversify and introduce offerings benchmarked against global best practices, Religare has entered into joint ventures with the global major- Aegon for its Asset Management and Life Insurance businesses in India. Religares wealth management subsidiary is now rechristened as Religare Macquarie Wealth Management Limited, following a joint venture with the Australia based financial services major, Macquarie Bank. Religare has also partnered with Vistaar Entertainment to launch Indias first Film Fund. The vision is to build Religare as a globally trusted brand in the financial services domain and present it as the Investment Gateway of India. All employees of the group guided by an experienced and professional management team are 34

committed to providing financial care, backed by the core values of diligence and transparency.

INDIABULLS
Indiabulls is Indias leading Financial Services and Real Estate company having over 640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance. With around 4000 Relationship Managers, Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls through its group companies has entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars. Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange and Luxembourg Stock Exchange. The market capitalization of Indiabulls is around USD 6,300 million (31st December, 2007). Consolidated net worth of the group is around USD 905 million (31st December, 2007). Indiabulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital. Business of the company has grown in leaps and bounds since its inception. Revenue of the company grew at a CAGR of 159% from FY03 to FY07. During the same period, profits of the company grew at a CAGR of 184%. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC, a respected US based investment firm. Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties in Mumbai and Delhi. Indiabulls Financial Services Ltd.

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\ The Angel Group of Companies was brought to life by Mr. Dinesh Thakkar. He ventured into stock trading with an intention to raise capital for his own independent enterprise. However, he recognised the opportunity offered by the stock market to serve individual investors. Thus Indias first retail-focused stockbroking house was established in 1987. Under his leadership, Angel became the first broking house to embrace new technology for faster, more effective and affordable services to retail investors. Mr. Thakkar is valued for his understanding of the economy and the stockmarket. The print and electronic media often seek his views on the market trend as well as investment strategies.

Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India. With its unique retail-focused stock trading business model, Angel is committed to providing Real Value for Money to all its clients. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a Depository Participant with CDSL.

PROCEDURE TO INVEST IN MUTUAL FUND

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

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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

Constitution of a Mutual Fund

There are a number of bodies that form a part of the mutual fund, they are as follows

Sponsors
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The sponsor is the company which sets up the mutual fund. It means anybody corporate acting alone or in combination with another body corporate established a mutual fund after initiating and completing the formalities.

Trustees

The management of the mutual fund is subject to the control of the board of trustees of the fund. They guide the operations of the fund and carry the crucial responsibility to see that AMC always act in the best interest of the investors.

Asset Management Company

The mutual fund is operated by a separately established asset management company (AMC).It manages t he funds of the various schemes. It is entrusted with the specific task of mobilizing funds under the scheme.

Custodian
A custodian is a person carrying on the activities of the safekeeping of the securities or participating in any clearing system on behalf of the clients to effect deliveries of the securities .

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ADVANTAGES OF MUTUAL FUNDS

Professional Management Convenient Administration Low Costs Transparency Choice of schemes Well regulated Diversification Return Potential Liquidity Flexibility Tax benefits

Why should investors choose for karvy?

Excellence is next to nothing.and here at karvy everybody tries their best to offer excellent services to its clientele through its offerings maintaining the karvy culture which includes:

1. Controlled and low cost service culture: karvy is there to serve its client at the minimum possible cost. it controls cost by its various cost- cutting techniques and minimization of avoidable costs.

2. Large volume processing capability: being the largest financial service provider in the country, it has the unique distinction of operating its activities on a large scale which benefits all the parties cordially.

3. Adherence to strict time schedule: karvy knows that time is money and tries it best to finish the task within the stipulated time schedule. 4. Expertise in coordinating multi-location responses: karvy has got a wide network and hence one can find its branches at most of the places in India. Thus it

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enjoys its presence everywhere and coordinates among itself in solving the queries and in responding to any situation.

5.Expertise in managing independent entities such as banks, post-office etc.: the work culture of karvy and the ethics followed inside karvy makes its workforce compatible with everybody, so the karvy people establishes good coordination with independent entities too.

6. Pooling of group resources: karvy group consists of eight subsidiaries, so it can easily pool up its resources for accomplishment of its goals, whenever needed. The groups can help each other whenever there are peaks and lows, and even in the case when they have huge targets just as we saw few years back, Tata group pooling its resources to acquire Corus.

How karvy achieved it?

The core competency of karvy lies in the following points due to which it enjoys a competitive edge over its competitors. The following culture adopted by karvy makes it all time favorite among its clientele: 1. Professionally managed by qualified and trained manpower. 2. Uniquely structured in-house software and hardware department 3. Query handling within 48 hrs. 4. Strong secretarial, accounting and audit systems. 5. Unique work culture of working 7 days a week in 3 shifts. 6. Unmatched network spreading all over India.

How Achievements sounds synonymous to karvy:

The landmarks achieved by karvy very well define its success story. In the previous pages, we learnt how a company started by five chartered accountants, named as karvy and company turned into todays karvy group, the largest financial intermediary of India. 41

But success didnt came to karvy at a flow, the hard work and dedication of its workforce made it what it is todaygradually it achieved the following landmarks and now it has became what we call the karvy group, now it is:

1.largest independent distributor for financial products. 2.amongst the top 5 stock broker. 3.among the top 3 depository participants. 4.largest network of branches & business associates. 5.ISO 9002 certified operations by DNV. 6.Amongst top 10 investment bankers. 7.full- fledged IT driven operation. 8.Indias no.1 registrar & securities transfer agent.

Review of Literature/ Theoretical Background

Market Indexes The two prominent Indian market indexes are Sensex and Nifty. Sensex is the oldest market index for equities; it includes shares of 30 firms listed on the BSE, which represent about 45% of the index's free-float market capitalization. It was created in 1986 and provides time series data from April 1979, onward. The BSE and NSE Most of the trading in the Indian stock market takes place on its two stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The BSE has been in existence since 1875. The NSE, on the other hand, was founded in 1992 and started trading in 1994. However, both exchanges follow the same trading mechanism, trading hours, settlement process, etc. At the last count, the BSE had about 4,700 listed firms, whereas the rival NSE had about 1,200. Out of all the listed firms on the BSE, only about 500 firms constitute more than 90% of its market capitalization; the rest of the crowd consists of highly illiquid shares
Theoretical framework, background theory.

Beyond the normal utility maximizing agents, the efficient-market hypothesis requires that agents have a rational expectation that on average the population is correct (even if no one person is) and whenever new relevant information appears, the agents update their expectations appropriately. Note that it is not required that the agents be rational. EMH allows that when faced with new information, some investors may overreact and some may underreact. All that is required by the EMH is that investors' reactions be random 42

and follow a normal distribution pattern so that the net effect on market prices cannot be reliably exploited to make an abnormal profit, especially when considering transaction costs (including commissions and spreads). Thus, any one person can be wrong about the marketindeed, everyone can bebut the market as a whole is always right. There are three common forms in which the efficient-market hypothesis is commonly stated weak-form efficiency, semi-strong-form efficiency and strong-form efficiency, each of which has different implications for how markets work. In weak-form efficiency, future prices cannot be predicted by analyzing price from the past. Excess returns cannot be earned in the long run by using investment strategies based on historical share prices or other historical data. Technical analysis techniques will not be able to consistently produce excess returns, though some forms of fundamental analysis may still provide excess returns. Share prices exhibit no serial dependencies, meaning that there are no "patterns" to asset prices. This implies that future price movements are determined entirely by information not contained in the price series. Hence, prices must follow a random walk. This soft' EMH does not require that prices remain at or near equilibrium, but only that market participants not be able to systematically profit from market 'inefficiencies'. However, while EMH predicts that all price movement (in the absence of change in fundamental information) is random (i.e., non-trending), many studies have shown a marked tendency for the stock markets to trend over time periods of weeks or longer and that, moreover, there is a positive correlation between degree of trending and length of time period
studied (but note that over long time periods, the trending is sinusoidal in appearance). Various explanations for such large and apparently non-random price movements have been promulgated. But the best explanation seems to be that the distribution of stock market prices is non-Gaussian (in which case EMH, in any of its current forms, would not be strictly applicable). The problem of algorithmically constructing prices which reflect all available information has been studied extensively in the field of computer science. For example, the complexity of finding the arbitrage opportunities in pair betting markets has been shown to be NP-hard. In semi-strong-form efficiency, it is implied that share prices adjust to publicly available new

information very rapidly and in an unbiased fashion, such that no excess returns can be earned by trading on that information. Semi-strong-form efficiency implies that neither fundamental analysis nor technical analysis techniques will be able to reliably produce excess returns. To test for semi-strong-form efficiency, the adjustments to previously unknown news must be of a reasonable size and must be instantaneous. To test for this, consistent upward or downward adjustments after the initial change must be looked for. If there are any such adjustments it would suggest that investors had interpreted the information in a biased fashion and hence in an inefficient manner. In strong-form efficiency, share prices reflect all information, public and private, and no one can earn excess returns. If there are legal barriers to private information becoming public, as with insider trading laws, strong-form efficiency is impossible, except in the case where the laws are universally ignored. To test for strong-form efficiency, a market needs to exist where investors cannot consistently earn excess returns over a long period of time. Even if some money managers are consistently observed to beat the market, no refutation even of strong-form efficiency follows: with hundreds of thousands of fund

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managers worldwide, even a normal distribution of returns (as efficiency predicts) should be expected to produce a few dozen "star" performers.

5.Objective
Our objective from the project is to study the background of the Indian capital market and make comprehensive decisions for the investment opportunities there in.

2. Method of research
This report is based on primary as well secondary data, however primary data collection was given more importance since it is overhearing factor in attitude studies. One of the most important users of research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem .It also helps in collecting the vital information that is required by the top management to assist them for the better decision making both day to day decision and critical ones. Type of research Data type Personal and financial data analysis Data Collection tools Research is totally based on primary data. Secondary data can be used only for the reference. Research has been done by primary data collection, and primary data has been collected by interacting with various people. The secondary data has been collected through various journals and websites.

Sampling frame The sample was selected of them who are the customers/visitors of karvy Indore branch, irrespective of them being investors or not or availing the services or not. It was

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also collected through personal visits to persons, by formal and informal talks. The data has been analyzed by using mathematical/Statistical tool. Unit Mutual funds

Size The sample size of the project is limited to 200 people only. Out of which only120 people had invested in Mutual Fund. Other 80 people did not have invested in Mutual Fund

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7.Data analysis , Results and Interpretation

1. (A) Age distribution of the Investors. Age Group 31-35 36-40 41-45 46-50 No. of Investors 12 18 30 24

51 - 55 56-60 20 16

Interpretation: According to this chart out of 120 Mutual Fund investors of karvy the most are in the age group of 36-40 yrs. i.e. 25%, the second most investors are in the age group of 4145yrs i.e. 20% and the least investors are in the age group of below 30 yrs. (b). Educational Qualification of investors.
Educational Qualification Number of Investors Investors invested in Mutual Fund Age group of the Investors Under Graduate Others Total

25 7 120

Interpretation: Out of 120 Mutual Fund investors 71% of the investors in Indore are Graduate/Post Graduate, 23% are Under Graduate and 6% are others (under HSC). c). Occupation of the investors. Govt. Service 30 Pvt. Service 45 Business 35 Agriculture 4 Others 6 Interpretation: In Occupation group out of 120 investors, 38% are Pvt. Employees, 25% are Businessman, 29% are Govt. Employees, 3% are in Agriculture and 5% are in others. (d). Monthly Family Income of the Investors of Indore. Income Group No. of Investors

<=10,000
10,001-15,000 15,001-20,000 20,001-30,000 >30,000

5
12 28 43 32

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Interpretation: In the Income Group of the investors of Indore, out of 120 investors, 36% investors that is the maximum investors are in the monthly income group Rs. 20,001 to Rs. 30,000, Second one i.e. 27% investors are in the monthly income group of more than Rs. 30,000 and the minimum investors i.e. 4% are in the monthly income group of below Rs. 10,000. (2) Investors invested in different kind of investments. Kind of Investments No. of Respondents Saving A/C 195 Fixed deposits 148 Insurance 152 Mutual Fund 120 Post office (NSC) 75 Shares/Debentures 50 Gold/Silver 30 Real Estate 65 Interpretation: From the above graph it can be inferred that out of 200 people, 97.5% people have invested in Saving A/c, 76% in Insurance, 74% in Fixed Deposits, 60% in Mutual Fund, 37.5% in Post Office, 25% in Shares or Debentures, 15% in Gold/Silver and 32.5% in Real Estate. 3. Preference of factors while investing Factors (a) Liquidity (b) Low Risk (c) High Return (d) Trust No. of Respondents 40 60 64 36 Interpretation: Out of 200 People, 32% People prefer to invest where there is High Return, 30% prefer to invest where there is Low Risk, 20% prefer easy Liquidity and 18% prefer Trust 4. Awareness about Mutual Fund and its Operations Interpretation: Response Yes No. of Respondents 135

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From the above chart it is inferred that 67% People are aware of Mutual Fund and its operations and 33% are not aware of Mutual Fund and its operations. 5. Source of information for customers about Mutual Fund Source of information No. of Respondents Advertisement 18 Peer Group 25 Bank 30 Financial Advisors 62 Interpretation: From the above chart it can be inferred that the Financial Advisor is the most important source of information about Mutual Fund. Out of 135 Respondents, 46% know about Mutual fund

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Through Financial Advisor, 22% through Bank, 19% through Peer Group and 13% through Advertisement. 6. Investors invested in Mutual Fund Response No. of Respondents YES 120 NO 80 Total 200 Interpretation: Out of 200 People, 60% have invested in Mutual Fund and 40% do not have invested in Mutual Fund. 7. Reason for not invested in Mutual Fund Reason No. of Respondents Not Aware 65 Higher Risk 5 Not any Specific Reason 10 Interpretation: Out of 80 people, who have not invested in Mutual Fund, 81% are not aware of Mutual Fund, 13% said there is likely to be higher risk and 6% do not have any specific reason. 8. Investors invested in different Assets Management Co. (AMC) Name of AMC No. of Investors SBIMF 55 UTI 75 HDFC 30 Reliance 75 ICICI Prudential 56 Kotak 45 Others 70 Interpretation: In Indore most of the Investors preferred UTI and Reliance Mutual Fund. Out of 120 Investors 62.5% have invested in each of them, only 46% have invested in SBIMF, 47% in ICICI Prudential, 37.5% in Kotak and 25% in HDFC. 9. Preference of Investors for future investment in Mutual Fund Name of AMC No. of Investors SBIMF 76 UTI 45 HDFC 35 Reliance 82 ICICI Prudential 80 Kotak 60 Others 75

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Interpretation: Out of 120 investors, 68% prefer to invest in Reliance, 67% in ICICI Prudential, 63% in SBIMF, 62.5% in Others, 50% in Kotak, 37.5% in UTI and 29% in HDFC Mutual Fund. 10. Channel Preferred by the Investors for Mutual Fund Investment Channel Financial Advisor Ban No. of Respondents 72 18

AMC 30

Interpretation: Out of 120 Investors 60% preferred to invest through Financial Advisors, 25% through AMC and 15% through Bank. 11. Mode of Investment Preferred by the Investors Mode of Investment One time Investment Systematic Investment Plan (SIP) Interpretation: Out of 120 Investor 65% preferred one time Investment and 35 % Preferred through Systematic Investment Plan. 12. Preferred Portfolios by the Investors Portfolio No. of Investors Equity 56 Debt 20 Balanced 44 Interpretation: From the above graph 46% preferred Equity Portfolio, 37% preferred Balance and 17% preferred Debt portfolio 13. Option for getting Return Preferred by the Investors Option Dividend Payout Dividend Reinvestment Growth No. of Respondents 25 10 85 Interpretation: From the above graph 71% preferred Growth Option, 21% preferred Dividend Payout and 8% preferred Dividend Reinvestment Option. 14. Preference of Investors whether to invest in Sectorial Funds Response No. of Respondents Yes 25 No 95 Interpretation: Out of 120 investors, 79% investors do not prefer to invest in Sectorial Fund because there is maximum risk and 21% prefer to invest in Sectorial Fund.

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8.Conclusions
Running a successful Mutual Fund requires complete understanding of the peculiarities of the Indian Stock Market and also the psyche of the small investors. This study has made an attempt to understand the financial behavior of Mutual Fund investors in connection with the preferences of Brand (AMC), Products, Channels etc. I observed that many of people have fear of Mutual Fund. They think their money will not be secure in Mutual Fund. They need the knowledge of Mutual Fund and its related terms. Many of people do not have invested in mutual fund due to lack of awareness although they have money to invest. As the awareness and income is growing the number of mutual fund investors are also growing. Brand plays important role for the investment. People invest in those Companies where they have faith or they are well known with them. There are many AMCs in Punjab but only some are performing well due to Brand awareness. Some AMCs are not performing well although some of the schemes of them are giving good return because of not awareness about Brand. Distribution channels are also important for the investment in mutual fund. Financial Advisors are the most preferred channel for the investment in mutual fund. They can change investors mind from one investment option to others. Many of investors directly invest their money through AMC because they do not have to pay entry load. Only those people invest directly who know well about mutual fund and its operations and those have time.

9.Limitations of the project

Some of the persons were not so responsive. Possibility of error in data collection because many of investors may have not given actual answers of my questionnaire Sample size is limited to 200 visitors of reliance mutual funds, indore out of these only 120 had invested in Mutual Fund. The sample Size may not adequately represent the whole market. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. The research is confined to a certain part of indore.

10. Recommendations proper follow up of customer helps to maintain long term relation do not recommend unnecessary trading being honest is very necessary

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o Bibliography
NEWS PAPERS OUTLOOK MONEY TELEVISION CHANNEL (CNBC AAWAJ) FACT SHEET AND STATEMENT WWW.MONEYCONTROL.COM WWW. MUTUALFUNDSINDIA.COM WWW.KARVYONLINE .com

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