EXECUTIVE SUMMARY

A mutual fund is the most suitable investment for a common man as it

offers and opportunity to invest in a diversified, professionally managed basket of
securities at a relatively low cost. The mutual fund industry is a fat growing one
and there is a large potential market in India.
KARVY Stock Broking Services offers different schemes of various Asset
Mgmt. Companies to cater the varied investment goals of investors though a
variety of schemes. After two weeks of training and orientation programs on the
various Mutual fund schemes of different AMC, and various steps in personal
financial planning. I was ready to go for selling mutual funds. Being a
representative of Karvy Stock Broking Limited. My job was to ensure sales
promotion of various mutual funds as preferred by the investors.
In addition to this, a study in designing an investment proposal and portfolio
mgmt was carried out, for this purpose used a fact finder. Over the weekends I
was involved in the stall activities conducted by Karvy Stock Broking Limited to
increase the awareness of various Mutual Funds.
This interaction and the responses of the fact finders, gave me a rough
idea of the investment attitude of individuals.

Most individuals do have a fair amount of saving potential, (about 20% of

their income)

They are careful in carrying out investment activities.

Bank deposits remain to be the first choice of most investors.

Majority of the investors have a low risk appetite, and perceive mutual
funds to the risky instruments.

The time horizon of most investors is roughly 3-5 years on an average.

Thus, it was observed that most individuals possess a conservative
investment attitude.

OBJECTIVES

To Understand and study the mutual fund market in Orissa.

To Understand the marketing of mutual funds

To suggest the strategies for effective marketing of mutual fund.

To study on designing the investment proposal and portfolio mgmt.

METHODOLOGY
SAMPLE (DATABASE): In KARVY I was given a training and orientation
class of mutual funds for two weeks. I was given a database of some existing
customers and some I have to prepare my own through my contacts. I was
supposed to market those schemes. For that I prepared a sales pitch and tried to
get appointments over phone.

METHODS
CLIENTS:

ADOPTED

TO

CONTACT

THE

Making Tele-calls and Taking Appointments:

Taking appointments from individuals may sound simple. But this process
involves a lot of planning before making a telephone call. In present day busy
schedules, where life has become very fast no one would like to spare any time
when they do not see any benefit in doing so. Hence to get appointments my
approach was to enlighten them with the investment options currently available in
market. This strategy helped me to get appointment.

Meeting the Individuals:

This is the most crucial phase where I had face to face interaction with all
the individuals I met. Here in a short interaction with them I had to study their
basic need suggest them how a specific need can be addressed by investment in
mutual funds. My main job was to figure out their awareness level and
understanding of Mutual fund. On the first meet, awareness about mutual funds
was created. There after there interested individuals were followed up again. This

was the most important phase where I had prepared a Sales Pitch keeping in
mind some basic need of individuals.

ANALYSIS TOOLS USED:

Statistical Tools

Rating Scale Techniques

INDIAN FINANCIAL MARKET

The economy of the country is greatly influenced by its financial system.
The close relationship between financial structure and economic development is
reflected in the prevailing institutional arrangement, delivery system and
intermediation process.
The Indian financial sector has two broad segment:

Organised sector

Unorganised sector

(My study is restricted to only Organized Financial sector)

The organized segment includes commercial banks, development finance
institutions, insurance companies, and other non bank, financial institutions,
including mutual funds, unit trusts etc. An important characteristics of the Indian
financial system is the predominant presence of public ownership and control, in
keeping with the policy of planned development in force since 1951. The public
sector can be grouped into the following broad categories.

COMMERCIAL BANKS:

With a wide network of branch, they primary collect deposits and lend to
industry on the cash-credit basis, besides priority sector lending they are subject
to several restrictive norms.

TERM LENDING DEVELOPMENT INSTITUTIONS:

These are Industrial development Bank of India (IDBI), Industrial Finance
Corporation of India (IFCI) and Industrial credit and Investment Corporation of
India (ICICI). They cater to the needs of long term finance for the corporate sector.

INSURANCE INSTITUTIONS:
These are the Government owned Life Insurance Corporation of India (LIC)
and General Insurance Corporation (GIC) and its subsidiaries. They provide life
and general insurance mobilized funds and invest in capital markets. They are
important institutional investors in India.

UTI AND MUTUAL FUNDS:

There are 35 mutual funds in India. The three categories of mutual funds
are public sector mutual funds, domestic private sector mutual funds and foreign
mutual funds. They have emerged as dynamic financial intermediaries and are
very important institutional investors in India. In the savings market, mutual funds
compete with banks and in the capital market they are the must influential players
to influences market movements.

INTRODUCTION TO MUTUAL FUNDS

Mutual funds are dynamic financial institutions, which play a crucial role in
as economy by mobilizing a link between savings and the capital market. Thus,
they assist the process of financial deepening and intermediation. They mobilise
funds in the savings market and it as complementary to banking at the same time
they also compete with banks and other financial institutions. In this process the
stock market activities are also influenced by mutual funds.

MEANING:
A MUTUAL FUND IS A COMMON POOL OF MONEY INTO WHICH THE
INVESTORS PLACE THEIR CONTRIBUTIONS THAT ARE TO BE INVESTED
IN ACCORDANCE WITH A STATED OBJECTIVE. Thus, mutual fund is created
when investors put their money together, and is invested by the fund manager in
different type of securities depending upon the objective of the scheme. These
could range from shares to debentures to money market instruments. The income
earned through these investments and the capital appreciation realized by the
scheme, both are shared by its unit holders in proportion to the number of units
owned by them. Each Mutual Fund scheme has its own investment objective and
strategy.
A Mutual fund is the ideal investment vehicle for todays complex and
modern financial scenario. A typical individual is unlikely to have the knowledge,

skills, inclination and time to keep track of events, understand their implications
and act speedily. A mutual fund is the answer to all these situations. It appoints
professionally qualified and experienced staff that manages each of these
functions on a full time basis. The large pool of money collected in the fund allows
it to hire such staff at a very low cost to each investor.
Mutual funds ,in its present form is a 20 th century phenomenon. Infact, it
gained popularity only after the Second World War. Today, mutual funds
collectively manage almost as much as a more money as compared to banks.In a
span of just five years, the industrys assets under management have vaulted
from Rs.1,01,565 cr in January 2000 to Rs.1,67,978 cr by May 31,2005.
The flow chart below describes the working of mutual fund:-

Investors
Passed back to

pool their money with

Returns

Fund manager

Generates

invest in

Securities
IMPORTANT CHARACTERISTICS OF A MUTUAL FUND:

The ownership of Mutual Fund is in the hands of the investors

A mutual fund is managed by investment professionals and other service

providers who earn a fee for their services, from the fund.

The investment portfolio of the mutual fund is created according to the stated
investment objectives of the fund.

The pool of funds is invested in a portfolio of marketable investments. The

value of the portfolios is updated everyday.

The investors share in the fund is denominated by units. The value of the
units changes with change in the portfolios value, everyday. The value of
one unit of investment is called as the Net Asset Value or NAV.

MUTUAL FUNDS HISTORY IN INDIA:

The mutual fund industry in India started in 1963 with the formation of UTI,
at the initiative of the govt. of India and RBI. The history of mutual funds in India
can be broadly divided into four distinct phases:

First Phase 1963- 1987

In 1963, UTI was established by an Act of Parliament. It was set up by RBI
and functioned under the Regulatory and administrative control of the RBI. In
1978, UTI was delinked from the RBI and IDBI took over the regulatory and
administrative control in place of RBI. The first scheme launched by UTI was Unit
scheme 1964, at the end of 1988.UTI had Rs.6700 crores of assets under
management.

Second Phase 1987 93(Entry of Public sector Funds)

1987 marked the entry of non-UTI public sector mutual funds set up by
public sector banks and LIC and GIC. SBI Mutual fund was the first non-UTI
Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec.
1987), Punjab National Bank Mutual Fund (August 1989), Indian Bank Mutual

Fund (Nov. 1989), Bank of India (Jan. 1990) Bank of Baroda Mutual Fund (Oct.
1992). 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 has
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 Indian
Mutual Fund Industry Kothari Pioneer (now merged with Franklin Templeton) was
the first private sector mutual fund registered in July 1993. In 1993 SEBI
Regulations were substituted by a more comprehensive and revised Mutual Fund
Regulation in 1996. The industry now functions under SEBI (Mutual Fund)
Regulation 1996.

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 special field undertaking
of the UTI 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 UTI, functioning under an
administrator and under the rates formed by GOI, and it does not come under the
perview of the Mutual Fund Regulations, The Second is the UTI Mutual fund Ltd.,
sponsored by SBI, PNB and LIC. It is registered with SEBI and functions under
the Mutual Fund.

ROLE OF SEBI IN MUTUAL FUND INDUSTRY:

SEBI formulates policies and regulates the mutual funds to protect the
interest of the investors. SEBI notified regulates for the mutual funds in 1993.
There after, mutual funds sponsored by private sector entities were allowed to
enter the capital market. The regulations were fully revised in 1996 and here been
amended thereafter from time to time. SEBI has also issued guidelines to Mutual
Funds from time to time to profit the interest of investors.

All mutual funds whether promoted by public sector or private sector

entities including those promoted by foreign entities are governed by the same
set of regulations. There is no distinction in regulatory requirements for these
mutual funds and all are subject to monitoring and inspections by SEBI. The risks
associated with the schemes launched by the mutual funds sponsored by these
entities are of similar type. It may be mentioned here that UTI is not registered
with SEBI as a mutual fund (as on January 15,2002)

ORGANISATION OF MUTUAL FUND:

A mutual fund is set up in the form of trust, which has Sponsors, Trustees,
Asset Management Company (AMC) and Custodian.
The trust is established by a sponsor or more than one sponsor who is like
promoter of a company. The trustees of the mutual fund hold its property for the
benefit of the unit holders.
Asset Management company (AMC) approved by SEBI manages the funds
by making investments in various types of securities.

Custodian, who is

registered with SEBI, holds the securities of various schemes of fund in its
custody. The trustees are vested with the general power of superintendence and
direction over AMC. They monitor the performance and compliance of SEBI
Regulations by the mutual fund.
SEBI Regulations require that at least two thirds of the directors of trustee
company or board of trustees must be independent i.e. they should not be
associated with the sponcers. Also, so% of the directors of AMC must be
independent. All mutual funds are required to be registered with SEBI before they
launch any scheme.

10

ADVANTAGES OF INVESTING IN THE MUTUAL FUND:

Mutual funds are becoming a very popular form of investment
characterized by many advantages that they share with other forms of
investments and what they possess uniquely themselves. The primary objectives
of an investment proposal would fit into one or combination of the two broad
categories i.e offers several important advantages

Professional Management:
Qualified professionals manage your money, but they are not alone. They
have a research team that continuously analyses the performance and
prospects of companies.

Diversification:
The saying, do not put all your eggs in one basket really applies to the
concept of intelligent investing. Diversification lowers the risk of loss by
spreading your money across various industries. Its is a rare occasion
when all stocks decline at the same time and in same proportion.

Choice of schemes:
Mutual Funds offer a variety of schemes that will suit individuals need over
a lifetime. When you enter a new stage in your life, all you need to do is to
sit down with your investment advisor who will help you to rearrange your
portfolio to suit your altered life style.

Affordability:
As a small investor, we may find that it is not possible of buy share of larger
corporation. Mutual Funds generally buy and sell securities in large trading
costs. The smallest investor can get started on Mutual Funds because of
the nominal investment requirements. We can invest with a minimum of Rs.
500 in a SIP on regular basis.,

Tax Benefits:
Investment held by investors for a period of 12 months or more quality for
capital gains and will be taxed accordingly (10% of the amount by which
the investment appreciated, or 20% after factoring in the benefit of cost

11

indexation, which ever is lower). These investments also get the benefit of
indexation. And also the dividend received by an investors is tax free in the
hands of investors.

Liquidity:
With open-end funds, we can redeem all or part of your investment any
time when we wish and receive the current value of
Shares or the NAV related price. Funds are more liquid than must
investments in shares, deposits and bonds and the process is
standardizing, making it quick and efficient so that we can get cash in hand
as soon as possible.

The Transparency of Mutual Funds:

The performance of Mutual Funds are reviewed by various publication and
rating agencies, making it easy for investors to compare one to the other.
Once we became part of a Mutual Fund scheme, we are provide with
regular updates e.g daily NAVs, as well as information on the specific
investments made and the fund managers strategy and outlook of the
scheme.

Regulations of Mutual Funds -:

All mutual funds are required to register with SEBI. They are obliged to
follow strict regulations designed to protect investors. All operations are
also regularly monitored by the SEBI.

TYPES OF MUTUAL FUND SCHEMES

Mutual fund schemes may be classified on the basis of its

structure

and its investment objective

BY STRUCTURE:

12

Open - ended Funds:

An open end fund is one that is available for subscription , all through the
year. These funds do not have fixed maturity periods. Investors con conveniently
buy and sell units at NAV related prices. The key feature of open-end schemes is
liquidity.

Closed- ended funds:

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

BY INVESTMENT OBJECTIVE:
Growth Funds:
The aim of growth funds is to provide capital appreciation over the medium
to long term. Such schemes normally invest a majority of their corpus in equities.
It has been proven that return from stocks, have outperformed most other kind of
investments held over the long term. Growth schemes are ideal for investors
having long term outlook seeking growth over a period of time.

Income funds:
The aim of income funds is to provide regular and steady income to
investors. Such schemes generally invest in fixed income securities such as
bonds, corporate debentures and Govt. securities. Incomes funds are ideal for
capital stability and regular income.

13

Balanced funds:
The aim of balanced funds is to provide both growth and regular income.
Such schemes periodically distribute a part of their earnings and invest both in
equities and fixed income securities in eh proportion indicated in their offer
document. In a rising stock market, the NBAV of these schemes may not normally
keep pace, or full equally when the market falls. These are ideal for investors
looking for a combination of income and moderate growth.

Money Market Funds:

The aim of money marked funds is to proved easy liquidly, presentation of
capital and moderate income. These schemes generally invest in safer short term
instruments such as Treasury bill, Certificates of deposit, commercial paper and
inter bank call money. Returns on these schemes may fluctuate depending upon
the interest rates prevailing in the market these on these are ideal for corporate
and individual investors as a mean to park their surplus funds for short periods.

Load funds:
A load fund is one that charges a commission for entry or exit. That is,
each time you buy or sell units in the fund, a commission will be payable. Typically
entry and exit loads range firm 1% to 2%. It could be worth paying the load, if the
fund has a good performance history.

No-Load Funds:
A No- load fund is one that does not change a commission for entry or exit.
That is, no commission is payable on purchase or sale of units in the fund. The
advantage of a no load fund is that the entire corpus is put to work.

OTHER SCHEMES:
14

Tax saving schemes:

These schemes offer tax rebates to the investors under specific provisions
of the Indian Income Tax laws as the Govt. offers tax incentives for investment in
specified avenues. Investments made in Equity linked savings schemes (ELSS)
and pension schemes are allowed as deduction U/S 88 of the Income Tax Act,
1961. the Act also provides opportunities to investors to save capital gains U/S 54
EA and 54 EB by investing in Mutual Funds.

Industry Specific Schemes:

Industry specific schemes invest only in the industries specified in the offer
document. The investment of these funds is limited to specific industries like
InfoTech, FMCG and pharmaceuticals etc.

Index schemes:
Index Funds attempt to replicate the performance of a particular index such
as the BSE sensex or the NSE Nifty .

Sectoral schemes:
Sectoral schemes are those, which invest exclusively in a specified industry
or a group of industries or various segments such as A group shares or initially
public offerings.

AMC-wise Assets Under Management, as on May 31, 2005

Sr.
No

Name of the Asset Management Company

Asset Under
Managemen
15

.
A
1.

t (in Rs. Cr.)

BANK SPONSORED
(i) Joint Ventures Predominantly Indian
SBI Funds Management Ltd.
Total A (i)

7182
7182

OTHERS
1.
2.
3.

BOB Asset Management Co. Ltd.

Canbank Investment Management Services Ltd.
UTI Asset Management Company Pvt. Ltd.
Total A (ii)

125
1895
22444
24464

Total A (i + ii)

31646

B
1.
2.

INSTITUTIONS
GIC Asset Management Co. Ltd.
Jeevan Bima Sahayog Asset Management Co. Ltd.
Total B

PRIVATE SECTOR
(i) INDIAN

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Benchmark Asset Management Co. Pvt. Ltd.

Cholamandalam Asset Management Co. Ltd.
Credit Capital Asset Management Co. Ltd.
Escorts Asset Management Ltd.
J.M. Financial Asset Management Pvt. Ltd.
Kotak Mahindra Asset Management Co. Ltd.
Reliance Capital Asset Management Co. Ltd.
Sahara Asset Management Co. Pvt. Ltd.
Sundaram Asset Management Company Pvt.
Tata Asset Management Private Ltd.
Total C (i)

496
911
176
123
3975
7297
10128
291
1876
8164
33437

(ii) JOINT VENTURES PREDOMINANTLY INDIAN

Birla Sun Life Asset Management Co. Ltd.
DSP Merrill lynch Fund Managers Ltd.
HDFC Asset Management Co. Ltd.
Total C (ii)

10722
7074
15710
33506

(iii) JOINT VENTURES PREDOMINANTLY FOREIGN

ABN AMRO Asset Management Co. Ltd.
Alliance Capital Asset Management Co. Ltd.
Deutsche Asset Management (India) Pvt. Ltd .
Fidelity Fund Management Private Ltd.
Franklin Templeton Asset Management (India) Pvt. Ltd.

1572
1342
2318
1495
17079

1.
2.
3.

1.
2.
3.
4.
5.

122
2871
2993

16

6.
7.
8.
9.
10
11.

HSBC Asset Management (India) Pvt. Ltd.

ING Investment Management (India) Pvt. Ltd.
Morgan Stanley Investment Management Pvt. Ltd.
Principal PNB Asset Management Co. Pvt. Ltd.
Prudential ICICI Asset Management Co. Ltd.
Standard Chartered Asset Mgmt Co. Pvt. Ltd.
Total C (iii)

7570
1925
1641
6116
17185
8153
66396
133339

Total C (i + ii + iii)

Total (A + B + C)

167978

OVERVIEW OF KARVY
KARVY, is a premier integrated financial service provider, and ranked
among the top five in the country in all its business segments, services over
sixteen million individual investors in various capacities, and provides investors
services to over 300 corporate, comprising the whos who of corporate India.
KARVY covers the entire spectrum of financial services such as stock broking
Depository participants, Distribution of financial products , Mutual Funds, bonds,
fixed deposits, equities, Insurance Broking, Commodities Broking, Personal
Finance Advisory services, Merchant Banking & Corporate Finance, Placement of
equity, IPOs, among others. KARVY has a professional Management team and
ranks among the best in technology, operations, and research of various industrial
segments.
The birth of KARVY was on a modest scale in 1981. It began with the
vision and enterprise of a small group of practicing Chartered Accountants who
founded the flagship company ------ Karvy Consultants Limited. It started with
consultancy and financial accountancy automation, and carved in roads into the
field of registry and share accountancy in 1985, since then it evolved as one of
Indias premier integrated financial service enterprise.

KARVY CONSULTANTS LIMITED:

17

As the flagship company of the Karvy Group, Karvy Consultants Ltd. has
always remained as the help of organizational affairs pioneering business policies,
work ethic and channels of progress.
Having emerged as a leader in the registry business, it transferred this
business in to a Joint venture with Computer Share Ltd. of Australia, the worlds
largest registrar. KARVY was 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, it services over six lakhs customer accounts in this business
spread across our 250 cites/towns in India, and is ranked amongst the largest
Depository Participants in the country with a growing secondary market presence,
it has been transferred to Karvy stock Broking Limited (KSBL) as associate and a
member of NSE, BSE and HSC.

IT ENABLED SERVICES:
Its technology services division forms the ideal platform to unleash its
technology initiatives and make its presence felt in Internet. Its past achievements
include many quality websites designs, developed and deployed by it.
The corporate website of the company, www. KARVY COM gives access
to indepth information on financial matters including Mutual Funds, IPOs, Fixed
Income Schemes, Insurance, Stock Market and much more. A host of other link
like My portfolio which acts as a personalized and customized financial measure,
makes this site extremely informative about investment options, market trends,
news as also about the company and each services offered.

KARVY STOCK BROKING LTD:

Member The National stock Exchange, The Bombay stock Exchange
and The Hyderabad stock Exchange.

18

KARVY stock Broking Ltd. is one of the cornerstones of the Karvy edifice,
which flows freely towards attaining diverse goals of customers through varied
services. It offers services that are beyond just a medium for buying and selling
stocks and shares. Instead, it provides services which are multidimensional and
multifocused in their slope. Its Stock Broking services is one of the best in the
country.
It offers trading on a vast platform. It makes trading safe to the maximum
possible extent, by accounting for several risk factors and planning accordingly. It
is assisted in this task by its indepth research, constant feedback and sound
advisory facilities. Its highly skilled research term, comprising of technical analysts
as well, as fundamental specialists, secure result oriented information on market
rends, market analysis and market predictions.
The pre-session Report, the Mid session Report, the post session Report
are published and are reviewed. Its monthly magazine . The Finapolis and its
weekly report called Karvy Bazar Baatein keeps a close look on various
investment options and products await able in market.
Its stock Broking services are widely networked across India, with the
number of trading terminals providing retail stock broking facilities. Its services
have increasingly offered customer oriented and convenient service, which it
provide to a spectrum of investors, high net worth or otherwise, with equal
dedication and competence. Its retail client base is expanding very fast because
of its success in the electronic custody business.

DEPOSITORY PARTICIPANTS:
The onset of the technology resolution in financial services industry saw
the emergence of Karvy as a electronic custodian registered with NSDL and
CSDL in 1998. Karvy sets standards enabling further comfort to the investor by
promoting paperless trading across the country and emerged as the top 3
Depository Participants in the country in terms of customer service.

19

DISTRIBUTION OF FINANCIAL PRODUCTS:

With its wide portfolio offerings, it occupy all segments in the retail financial
services industry. A 1600 team of highly qualified and dedicated professional
drawn from the best of academic and professional backgrounds are committed to
maintaining high levels of client service delivery. This has propelled it to a position
among the top distributors for equity and debt issues with and estimated market
share of 15% in terms of applications mobilized besides being established as a
leading procurer in all public issues. The monthly magazine, Finopolis, Provides
up-dated market information on market trends, Investment options, opinions etc.
Thus empowering the investors to base every financial move on rational thought
and prudent analysis and embark on the path to wealth creation.

ADVISORY SERVICES:
Under its retail brand Karvy the Finapolis it deliver advisory services to
a cross section of customers. The service is backed by a team of dedicated and
expert professionals with varied experience and background in handling
investment portfolios. They are continually engaged in designing the right
investment portfolio for each customer according to individual needs and budget
considerations with a comprehensive support system that focuses on trading
customers portfolios and providing valuable inputs, monitoring and managing the
portfolio through varied technological initiatives.

INVESTORS SERVICES LTD:

Recognized as a leading merchant banker in the country, it is registered
with SEBI as a category 1 merchant banker. This reputation was built by
capitalizing on opportunities in corporate consolidations, mergers and acquisition
and corporate restriction, which have earned it the reputation of a merchant
banker. It has emerged as a trailblazer in the arena of relationships, both at the
customer and trade levels because of its unshakable integrity, seamless service
and innovative solutions that are tuned to meet varied needs.

20

INSURANCE BROKING PVT. LTD:

At KARVY Insurance Broking Pvt. Ltd., it provides both life and non life
insurance products to retail individuals, high net worth clients and Corporate. It
also provides tailor made policies for different segments of customers.

MUTUAL FUND SERVICES:

It has attend a position of immense strength as a provider of across the
board transfer agency services to AMCs including prestigious clients like
Deutsche AMC and UTI, swear by the quality and range of services that it offer.
Besides providing the entire back office processing, it provide the link between
various Mutual funds and the investors, including services to the distributor, the
prime channel in this operation. The first to market approach that is its anthem
has earned it the reputation of an innovative service provider.

ISSUE REGISTRY:
KARVY has emerged as the largest transaction-processing house for the
Indian corporate sector. With an experience of handling over 700 issues, KARVY
today has the ability to execute voluminous transactions and hard core expertise
in technology applications have gained it the No.1 slot in the business. KARVY is
the first Registry Company to receive ISO 9002 certification in India that stands
testimony to its stature. KARVY has the backing of skilled human recourses
complemented by requisite technological packages to ensure a faster processing
capability. It has the benefit of good & energy between depositories and registry
that enables faster resolution to related customer queries. KARVY actively
coordinates with both the main depositories to develop specified models to enable
the customer to access depository services during IPO.

21

FINANCIAL PLANNING
Investment for most investors is a lifetime activity and not an ad-hoc
process. Therefore before investing the money, an investor wants to ensure that
he is taking a right decision and investing his hard earned funds at a safe place.
Most of the investors do not have adequate knowledge of the financial market and
cannot evaluate the best source of investment that is suited for them. This is
where the role of investment advisors becomes important.

PRINCIPLES OF FINANCIAL PLANNING

1.

Invest for long Term The power of Compounding:

The investors usually use the interest generated from their investments to

meet their daily requirements. If they do so, their principal investment remain the
same and they get the same amount of interest year after year. This can be
understood from the following example:
Mr. Kar has invested Rs.1000 at 8% interest for 10 years. He will get Rs. 80
as interest in all the 10 yeas. He would have got a total of Rs. 1800 based on
simple interest formula. If, he invested the same amount and earned 8% interest
compounded annually, he will get Rs..2200 approximately at the end of 10 years.

2.

Select a Strategy to Maximise Return on Investment:

22

There are different ways of inventing. Choosing the right strategy as an advisor is
the key to successful investment. Some, strategies are:
Buy and Hold:
The strategy for reaping maximum gains out of an investment is to track
your investments regularly, discarding the non-performing schemes and keeping
the good performing schemes. Holding on to losing investment would result in
losing the power of compounding. Long term investment does not mean buy-andhold without adjusting the portfolio to short out winners from losers.
Value Averaging:
Using this Strategy, an investor keeps the target value of investment
constant. He accordingly keeps changing the investments amount by investing the
amount by which the investment value has come down, or by chasing the
increased value of his investment or perhaps do nothing if the value has not
changed.
Four pillars of success for an investor:

Right Investment at Right Time

Regular
Investment

Investors
Success

Start Early

23

Realistic Expectation

3.

Asset Allocation:
Asset Allocation means diversifying your money among different types of

investment vehicles, such as stocks, bonds and money market instruments. The
goal is to help reduce risk and enhance returns. As financed goals are diverse. so
investment choices need to be as well. No single investment is likely to meet all of
the needs, so a person should keep some money in bank deposit to meet any
urgent needs for cash and keep the balance in other schemes that maximize the
return and minimize the risk.
Depending on your age, lifestyle, family, commitments, your level of income
and expenses, your financial goals will very. In order to access your needs, you
need to define your investment objectives which would be for example, receiving
a regular income, buying a house financing a weeding, paying for your childrens
education, or it could even be a combination of there. Besides defining your
objective, you also need to take into consideration the amount of risk you are
willing to take or can tolerate and what you cash flow requirement are.
Here are examples of three model investment strategies that can give you
can evolve your personal financial plan.
CONSERVATIVE PORTFOLIO

Bonds

50%

Stock

25%

Short Term

25%

24

CONSERVATIVE PORTFOLIO
Sort Term
25%
Bonds
50%
Stocks
25%
Bonds

Stocks

Sort Term

MODERATE PORTFOLIO

Bonds

30%

Stocks

50%

Short Terms

20%

MODERATE PORTFOLIO
Short Terms
20%

Bonds
30%

Stocks
50%
Bonds

Stocks

Short Terms

AGGRESSIVE PORTFOLIO

25

Bonds

15%

Stocks

75%

Short Terms

10%

AGGRESSIVE PORTFOLIO
Short Terms
10%

Bonds
15%

Stocks
75%
Bonds

Stocks

Short Terms

FINANCIAL PLANNING ROAD MAP

We would not venture off into an unknown country without a map at out
side, would we? So, why would we forge a path in to our financial future without
some idea of where we are going? Just like the international traveler, we need to
carry a map with as at all times, and refer to it often. That map is called your
Financial Plan.

Steps in Personal Financial Planning:

First Thing First

Cash at home (1 months expenses)

Adequate Balance in Saving Account (1 months expenses)

Medical Insurance Cover (As per your age and health)

26

Emergency Reserve (6-12 months exp in Bank Deposit)

Adequate Insurance Cover

Step (1) Understand your financial needs and fix a time frame for the
achievement of your financial goals:

NEED

TIME FRAME

Current Age

30 Years

Retirement

When 1 am 50

Childrens Higher Education

When they are 17 years old

Childrens Marriage

When they are 26 Years old

Purchase/Construction of House Flat

After 7 Years

Holiday

Next Year

Step (2) Determine the cost of your financial needs:

Years from today

Current cost

Likely future cost

(approx)

Retirement

20

20,000 P.M.

84,000

Childrens

17

3 Lakhs

8.8 Lakhs

26

2 Lakhs

10.8 Lakhs

Education
Childrens

27

Marriage
Purchase

of

25 Lakhs

40 Lakhs

90,000

1 Lakhs

House
Holiday

Estimate of Inflation (assumed) 7%

Step (3) Find out the amount of savings you will need to make in order to
achieve your financial goals:
Amount of Investment Needed to
Reach The Estimated Future
Cost

Need

Current Cost

Future Cost
(Approx)

Retirement

30 Lakhs

1.16 Crores

6231

12 Lakhs

Childrens
Education

3 Lakhs

8.85 Lakhs

904

1.4 Lakhs

Childrens
Marriage
Purchase of
House
Holiday

2 Lakhs

10.8 Lakhs

276

63,852

25 Lakhs

40 Lakhs

90,000

I Lakhs

If you make
monthly
investment

24,007

If you make a
one time
investment

18 Lakhs

7695

89,167

Step (4) Broadly classify your investment needs as short term, medium
term, long term, and very long term:
Time Horizon of the Investment

Classification

0 to 1 Year

Short term

1 Year to 5 Years

Medium term

28

5 Years to 10 Years

Long term

Above 10 Years

Very long term

Step (5) Match your financial needs with appropriate investment products,
based on the respective time horizons:
Need

Time
Horizon

Appropriate Investment Risk

For an investor who can
take normal risk

Investor who can

take extra risk

Retiremen
t

20 Years

80% Equity Based MF 20% 80% Equity Shares

Fixed Income Based MF
30% FDs

Childs
Education

7 Years

60% Equity Based MF 40% 60% Equity Shares

Fixed Income Based MF
40% FDs

Purchase
of House

3 Years

100 % Fixed Income Based 100% FDs

MF

Holidays

6 Months

100% Money Market MF

100% FDs

Step (6) Choose specific investment products to work upon your Investment
Plan. Following are some of the popular investment products each of these
has different risk, return, and liquidity profiles:
Savings Bank
Account

Bank Deposits

Bonds issued by Company

IDBI, ICICI etc.
Deposits

Post Office
Investment
Schemes

Fixed RBI Relief Bonds

Public Provident
Fund
Index
Equity
Funds

Based
Mutual

Equity
Based Fixed
Mutual Funds
Based
Funds

Income Govt.
Mutual Based
Funds

Securities Money
Market
Mutual Based
Cash
Mutual Funds

Equity Based tax Fixed

saving
Mutual Based
Funds
Income

Income Balanced MF with Childrens Future

Monthly Equity as well as Based MF
Mutual Fixed Income

29

Funds
Step (7) Take Stock of the Following :

Your current monthly income.

Your total current monthly expenditures

Your existing investments, Bank balances etc.

Your other asset like land etc.

Your liabilities and respective EMI (Equated Monthly Instalments)

Any other types of financial commitments you might have.

Your existing Medical Insurance cover.

Step (8) Ask yourself the following Question:

What is my appetite for risk ?

What do I consider as risk ?

What do I fear about investments ?

What is my Income Tax bracket ?

How much Tax do I pay every year ?

How secure do I feel in my existing job ?

What is the growth rate I foresee in my Income levels ?

Do I have a Reserve Fund to take care of emergencies ?

Do I have huge credit card out standings ?

Is it possible for no to reduce some of my expense ?

Step (9) Ensure that you are an informed and educated investor who is in
total control of his investments and his financial life:

How can Inflation impact your investments ?

How can Taxes impact your investments ?

How should I understand the various types of investments ?

What do you mean by compounding effect ?

Why Mutual Fund are indispensable for common investors ?

Step 10 : Use Expert Advice before going in for any investment.

30

With the variety of investment options available today, it is advisable to use

the guidance of an investment advisor. Everyone; investments are unique and
an investment advisor can help me to find the right investment to match ones
needs.

FINANCIAL PLANNING PROCESS

Financial planning process is an exercise aimed at identifying all the
financial needs of and individual, translating the needs into monetary
measurable goals at different times in the future, and planning the financial
investments that will allow the individual to provide for and satisfy his future
financial needs and vehicle his life is goal.
Following are the steps adopted by me while preparing the financial plan
for the clients -:
Step 1 Establish and define the relationship with client.
Step 2 Define the client goals.
Step 3 Gather and analyze data, access the current resources and future
income potential of the client.
Step 4 Determine and shape the risk tolerance of the client, for this purpose
prepared a fact finder, which is been explained later.
Step 5 Ascertain the clients tax situation.
Step 6 Recommend the appropriate assist allocation and specific
investments.
Step 7 Executing the plan and making the client invest.
Step 8 Reviewing process and portfolio rebalancing.

It is my belief that individuals differ in their investments needs based on

personal financial goals. It is recommended that you should, at the very
beginning for your childrens education or a comfortable retired life. After

31

defining those, you need to plan for them in an organized manner and look at
investments that help achieve those goals. Investments experts recommend
that growth investments such as equity funds and stocks are a good choice for
long term needs, income funds for median term needs and liquid funds for
short term requirements.

MY ROLES AND RESPONSIBILITIES

AT KARVY
DATA BASE:
In KARVY I was given a data base of few existing customers and I have to
collect few of my own link up through my friends and relatives. I was supposed to
market these Mutual Funds. For that I prepared a sales pitch and tried to get
appointments over phone.

MAKING TELEPHONE CALLS AND TAKING APPOINTMENTS:

Taking appointments from individuals may sound simple. But this prices
involves a lot of planning before making a telephone call. In present day busy
schedules, where life has become very fast, so one would like to spare their time
when they do not see any benefit in doing so . Hence, to get appointments, my
approach was to enlighten them with the investment option currently available in
market.

MEETING THE INDIVIDUALS:

This was the must crucial phase where I had face to face interaction with all
the Individuals I met. Here, in a short interaction with them I had to study their
basic needs and suggest them how a specific needs can be addressed by
investment in Mutual Fund. My main job was to figure out their awareness level
and understanding of Mutual Fund. On the first meet, awareness about Mutual

32

Fund was created, Thereafter the interested individuals were followed up again.
This was the most important phase where I had prepared a sales pitch keeping in
mind some basic needs of individuals.

SALES PITCH:
An appropriate and impressive sales pitch is the most important tool to
make a person understand what exactly Mutual Fund is and it is the most suitable
investment avenue to achieve his financial goals.
My sales pitch comprised of following four main phases/parts -:

FIRST PHASE:
In this phase my main objective was to understand the saving habits and
investment habits of individuals and reasons behind the same. This helps in
understanding the risk taking capability of investor and financial goals and its time
horizon and the objective of his investments, which are the basic factors on the
parameters to be considered by financial advisor while suggesting particular fund
or scheme.
In this stage I also tried to figure out their financial planning, is they have
done for themselves. Apart from this I also went in to his saving habits which
definitely helps him to address all their future financial commitments as and when
they are scheduled.
To find out all these I asked them some simple questions in the sequential
manner, (there may be changes according to individuals behaviors and
requirements) as mentioned below.
Do you have any saving habits ?

33

 Where did you invested the same ? ------- general option he had are Bond,
FDs, real estate, Gold, Postal deposits , stock market, MFs etc.
What is the main objective behind your investments ? ------- general options
he had are high rate of return, liquidity, assurance etc.
Why do you save ? ------- options were daughters marriage, house/car
purchase plan, sons higher education, etc.
Are you aware of inflation ? And how it robs purchasing power of
individual
Note : If no then explain him.

Have you done a financial planning for yourself ? ..

If yes then
To what extent your financial planning will enable you to address your
future needs which you cannot escape.
Here I took maximum of 5min to complete this stage to understand the
saving and investment habits of individuals and their risk taking ability, time
horizon etc, which helped me to decide whether this person can invest in Mutual
Funds or not.

SECOND PHASE:
In second phase I explained them about financial planning and how
important financial planning is in his life, Here I use to explain him about 3 rules of
wealth creation. They are
Start Early makes difference,
Save Regularly makes difference.
How much you earn makes difference.

34

In this phase of my sales pitch I also used some financial calculations provided
by KARVY which helped me to calculate the amount that should be invested at a
particular rate so that investors can attain his future financial commitments or
financial goals. This calculator helped me to make investors more clear about
financial planning and the Mutual Funds are the one of the best parking or
investment avenue for an investor.

THIRD PHASE:
When they realized the importance of Financial Planning in individuals life
in second place, in third phase I suggested them to make proper Financial plan, in
the due consideration of the capacity of risk taking, earnings etc. by the way of
investments in Mutual Funds and also some other good investment avenues,
Here I suggested all my clients to diversify their portfolio to attain his goals and to
minimize risk or to balance the returns.
In this stage of my sales pitch I use to recommend the schemes which suits
his objectives of investment and also in the due consideration of his risk taking
ability, amount he wanted to invest, rate of return expected, time horizon and
personal finance objectives and future commitments.
When the respondents were convinced with the Mutual Funds, I gave them
2 option i.e to either go for systematic Investment plan (SIP) or lump sum (LS)
amount investments.
The interested persons well followed up again to materialize the awareness
created within them, in to a successful sale.

FOURTH PHASE:
As marketing cycle consists a post sales services, as a marketing person
and financial advisor it is my duty to follow up an investor to check whether he is
satisfied with his decision or not. Because I believe every satisfied customer can
give at least me potential customers lead and this has turned as facts in practical

35

field. Follow up helps to build a healthy relationship which helps to retain

customer.

RETAIL INVESTMENT PLANNING:

Personal investment planning or retail investment planning is arrangement
of ones financial affairs, to meet certain objectives of personal investment
planning are
To increase wealth & not just income.
To earn tax-efficient income.
To ensure a reasonably high liquidity in investments ; and.
To ensure safety of investments, or to manage risk.
Many Mutual Fund investments plans satisfy AIMS of investment i.e,

- Appreciation

- Income

- Marketability

- Security

36

DESIGNING AN INVESTMENT PROPOSAL &

PORTFOLIO MANAGEMENT
A childs college education, retirement, death no way round it, the time will
come when one, or more, of these eventualities will cost you. And while each may
die somewhere in the distant future, fiscal prudence dictates you should begin
planning for their today. Thats where the investment portfolio, comes in.
Though the term investment portfolio may sound like something discussed
between the blue bloods at the country club, truth is, any working person with a
little extra cash in the pocket can begin investing in his, or her, financial future.
Creating a portfolio is the bedrock of any financial plan designed to increase
wealth and create a secure financial future for you and your loved ones.
We do not have to hold a degree in financial planning to cobble together an
investment portfolio of stocks, bonds, insurance, Mutual Funds and other money
programs. Whether We do-it-our self or like a professional to walk us through the
financial mage, we ll find the following questions, when answered, can get us
started and pointed in the right direction.
What are your financial goals ?
What is your investment potential ?
How much risk are you willing to take ?

37

 What is your Time Horizon ?

GOALS:
Want to build a ship and saw it around the world ? Perhaps you are
determined to send all the children and grand children to Havard ? Or may he
youd just like to spend your retirement worry free, swinging in a back porch
hammock. Whatever your vision of the future might be, defining a goal is the best
place to start before decided how to get there.

RISK:
With investment comes risk. The question is, how much risk are you willing
to take how much can you afford? while the greatest risk can produce the greatest
reward, it is also true that high risk investment can wipe out a saving account. This
is one area where doing your homework for having a professional do it for you )
can really help avoid financial land mikes.

TIME HORIZON:
What exactly is a time horizon ? Simply put, this is the time frame from the
moment you like start your financial plan until the day it pays off and goal is
reached. Time horizon is a matter of personal preference reflected in the choices
made while construct an investment portfolio .

NEXT STEP:
Once goals, risks and time horizon are established, the next step is
drawing up a financial plan and executing it. Some financial planning think of
Investment priorities when developing portfolio for their clients. Priorities may
either be growth, income or a combination of both. Portfolio usually includes a
variety of investment strategies to help insure a financial safety net for the
investor. By diversifying a portfolio such as mixing bonds, Mutual funds,
insurances and individual stocks looses in one area can be offset against gains
in another. Its also prudent for investors to conduct an occasional portfolio review,
making certain their strategies are building wealth and on track for their ultimate

38

financial goal. Life can play havoc with the best laid plan and it may become
necessary, at some point, to rebalance the portfolio.
The tool which helped me to analyze the risk tolerance level, depending on
his demographic profile was the MUTUAL FUND FACT FINDER designed by me
during the course of the project. This FACT FINDER is only a guiding tool to
enable the financial advisors and the investors to gain a perception on how
generally age profiles may be correlated to investment patterns. The FACT
FINDER helped me to design an investment proposal for any client. If also helped
me in understanding the concept of portfolio management. A sample of client with
his profile has been chosen to know the working of the MUTUAL FUND FACT
FINDER.

FACT FINDER OF AN UNMARRIED PROFESSIONAL

NAME:

Satya Sidharth

MARITAL STATUS:

AGE:

Unmarried

25

GENDER: Male

FAMILY SIZE: 1
EDUCATIONAL QUALIFICATION:

M.Sc. (Comp. Sc.)

EXPERIENCE IN INVESTING (YEARS):

ANNUAL INCOME:

> 5,00,000

< 5,00,000
OCCUPATION:

Software Analyst, Infosys

E.mail id.:

satya_sid@yahoo.co.in

ADDRESS:

Infosys, Bhubaneswar.

1.

PHONE #: 9437206181

If you were to define your one primary investment goal, what would
be it ?

Receiving regular income

39

2.

Saving for retirement/planning for a commitment

Acquiring an asset

Creating wealth

What type of investment plan would you choose ?

Low steady returns with total principal safety at all times

Medium returns with some possibility of a temporary decline in

principal

3.

4.

Above average returns with fluctuations in the value of investments

High returns, high risk

What is your current income level (annually)

About equal to expenses

Some what more than expenses

More than expenses

Much more than expenses

What percentage of your annual income do you set aside for

savings/investments ?

5.

Less than 20%

20% - 40%

40% - 60%

over 60%

If you had to choose between a fixed salary & a partly variable one
depending on your performance and the profits of your company,
which one would you choose ?

Prefer the fixed salary, even if it is small.

Prefer most of the salary to be fixed, with a small variable part

Prefer half the salary to be fixed, and the other half to be variable.

40


6.

7.

8.

Prefer most of the earnings to be performance linked

Where does the major part of your investments go into ?

No investments

Bank Deposits

Mutual funds

Shares

What do you normally associate the word risk with ?

Danger

Uncertainty

Opportunity

Thrill

If your investment advisor tells you that you could enjoy better
returns if you were willing to take the risk, to what extent would you
be willing to expose your investments to risk, to earn a higher
returns?

9.

Not at all

About 20%]

About 40%

More than 50%

Interest rates can go up and down. If you had to take a loan and had
the choice between a fixed rate and a variable one, which one would
your prefer ?

I will always choose a fixed rate

I will choose a combination of 70% fixed and 30% variable.

I will chose a combination of 30% fixed and 70% variable.

I will choose 100% variable.

41

10.

If you had to make an investment decision without consulting or

discussing it with anybody, how would you feel ?

Very unsure

Not very confident

Some what confident

Very confident

THANK YOU

42

ANALYSIS OF THE FACT FINDER

Scores have been attached to each of the answers mentioned above -:
a - 10 marks
b - 20 marks
c - 30 marks
d - 40 marks
Add up the score, this will be the Risk profile score. Here, the Risk profile
score of Mr. Satya Sidharth is 260.
The second step in the process is to ascertain the DEMOGRAPHIC profile
with the help of the table given below.
For every attribute that applies to the client is column A, we need to enter
1 in the score of A column alongside and for every attribute that applies to the
client in column B, enterO in the score B column alongside.
Attribute
Sex
Age
Income
Occupation
Educational

A
Male
< 50 years
> 5,00,000 P.a.
Self employed
Graduation and

background
Expense in

above
More than 3 Years

Investing
Total Score

Score A

B
Female
> 50 Years
< 5,00,000 P.a.
Salaried
Under graduate

Score B

Less than 3
years

Add up the score of column A. this is the DEMOGRAPHIC PROFILE score.

41

So, the Demographic profile score of Mr. Satya Sidharth is 03

Next, taking in to consideration the Risk profile and demographic profile
score, place the client in the relevant & lot against the score mentioned in the
given by circling the relevant scores.
Rise Profile
Score
120 150
> 150 < 200
> 200 < 300
> 300 < 400
> 400 < 480

0
VCI
VCI
CI
CI
MI

Demographic Profile Score

1
2
3
4
5
6
VCI VCI VCI VCI VCI VCI
VCI
CI
CI
CI
CI
MI
CI
MI
MI
MI
MI
AI
MI
MI
AI
AI
AI
VAI
AI
AI
AI
VAI VAI VAI

7
VCI
MI
AI
VAI
VAI

Reading the History:

AI = Aggressive investor

CI = Cautious Investor

VAI =Very Aggressive Investor

VCI = Very Cautious Investor

MI = Moderate Investor
In the sample taken of Mr. Satya Sidharth, the Risk profile score is 260 and
Demographic profile score is 03, so he falls in the category of MI (Moderate
Investor).
Risk Profile
Score
120 150
> 150 < 200
> 200 < 300
> 300 < 400
> 400 < 480

0
VCI
VCI
CI
CI
MI

1
VCI
VCI
CI
MI
AI

Demographic Profile
2
3
4
5
VCI
VCI VCI VCI
CI
CI
CI
CI
MI
MI
MI
MI
MI
AI
AI
AI
AI
AI
VAI VAI

6
CI
MI
AI
VAI
VAI

7
CI
MI
AI
VAI
VAI

The fact finder has helped me to analyze the risk taking ability of Mr. Satya
Sidharth, the kind of returns he is seeking and the overall investment profile.
Some of the insights gained by this exercise
Given that his debt commitments are low, he has a reasonable amount of
many to invest.

42

 The concept of Mutual Fund is not mew to him

His investment horizon ranges from 1 to 3 years.
He is looking for a long form appreciation of his investment.
Based on the above insights. I suggested him to invest in the following
combination of funds -:
Equity Oriented Schemes

40% - 60%

Debt Oriented Schemes

30% - 40%

Money Market Schemes, cash and liquid plan 10% - 30%

With reference to the ASSET ALLOCATION PLAN prepared as shown below:
Type of Investor

Equity Oriented
Scheme

Debt Oriented
Schemes

Very cautious

30-60%

Money Market
Scheme, cash &
liquid plans
40-70%

Investor
Cautious Investor
Moderate

0.35%
40-60%

50-70%
30 40%

15-30%
10 30%

Investor
Aggressive

50 80 %

20 40%

0 10%

Investor
Very Aggressive

90 100%

0 10%

Investor

CONCLUSIONS AND FINDINGS

TECHNIQUE OF INVESTMENT:
It is not where you invest that is important. How you invest is important.

The avenues of investment are not important. The technique of investment is

important. Today, Investment avenue, and products are being continually invented
and reinvented. Investors, who remain passive about their investments, will suffer

43

because of inflation, changes in interest rates, taxation and hew of beneficial

investment opportunities.

EXPECTATION OF INVESTORS:

AIMS:

The second is investors must knowing forget the AIMS of investments.

Discipline is required to stick to these principles and not depart from them
regardless of euphoria in the stock market or hype about new financial products.
Also, just as there are objectives of investment planning, these are several tool to
achieve these objectives. These tools are the post tax rate, diversification, the
setting of time horizons, systematic investments plans, and regular investment

44

reviews, investors must never fail to use AIMS and the pools to benchmark and
evaluate every investment avenue.

AWARENESS LEVEL:

Even though the first mutual fund was introduced in year 1963, the
awareness about Mutual Fund is minimal amongst the Indian sawing class. Most
of the Indians are unaware of a financial option called Mutual Funds. Till now, the
major part of sawing go into bank deposits, postal deposits and insurance.

PREFERENCE LEVEL OF GENERAL INVESTORS

In the competitive business environment good performance of scheme of a

particular Mutual Fund company plays a vital role in the minds of the existing
investors will deciding upon to invest than the brand name of the AMC.

45

SUGGESTIONS

Arranging regular training programme for the agents and distributors so

that they are well acquainted with recent changes in Mutual Fund industry
for increasing the business in Orissa and making the investors aware of the
same.

Apart from cities Mutual Fund companies should venture into rural areas
where large number of small investors are untapped.

Maintaining transparency in Management and creating awareness by

conducting seminars, workshops, and establishing good service network
can benefit the mutual fund industry in Orissa.

Advertisement in newspapers and television can help in increasing

awareness level of people regarding MF.

The intermediaries should look forward to increase the size of industry

rather than shuffling in between the same investors. This can be done by
concentrating more on new investors rather than retaining the old ones.

There has been lot of service problems faced by clients. So attempts

should be made to solve these problems and render them the desired
service.

Risk Disclaimer : Mutual Funds investments are subject to market risk

,please read the offer document carefully before investing.

BIBLIOGRAPHY
Books Referred:

Mutual Funds in India H. Sadak

46

Association of Mutual Funds in India

Financial Management Theory and Practice Prasanna Chandra

Marketing Management Phillip Kotler.

Websites:
www.mutualfundsIndia.com
www.karvy.com
www.personalfn.com
www.amfiindia.com
Magazine :
Chartered Financial Analyst.
July 2005 Edition
(Mutual Funds 2005 special)

47