Mutual Fund - Okok

Mutual Fund In Canara Bank
A STUDY OF MUTUAL FUNDS IN CANARA

BANK
CONTENTS
Chapter 1
INTRODUCTION
1.1 Introduction to the study
1.2 Objective
1.3 Statement of the problem
1.4 Need for the study
1.5 Scope of the study
1.6 Methodology
1.7 Sampling Design
1.8 Questionnaire Design
1.9 Data Analysis
1.10 Limitations
Chapter 2
BANKING PROFILE
2.1 Indian Banking Sector: Brief Introduction
2.2 Post-Independence
2.3 Nationalization
2.4 Liberalization
2.5 Technology
2.6 Recent Developments of Banking sector in India
2.7 Indian Banking System
Chapter3
CANARA BANK PROFILE
3.1 Origin of Canara Bank
3.2 Significant Milestone of Bank
3.3 Organization Structured
3.4 Products and Services Profile
3.5 Competitors and Market Share
ATNCC, SHIVAMOGGA 1
Chapter 4
CONCEPTUAL BACKGROUND
4.1 Introduction
4.2 Advantages of Mutual Fund:
4.3 Disadvantages of Mutual Fund:
4.4 Types of Fund
4.5 Money Market Mutual Fund
4.6 Different Plans of Mutual Fund
4.7 Risks of Mutual Funds:
Chapter 5
ANALYSIS AND INTERPRETATION OF DATA
Chapter 6
FINDINGS, SUGGESSION AND CONCLUSION
ANNEXURE
Questionnaire
Bibliography
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Chapter 1
INTRODUCTION
1.1 Introduction to the study

1.2 Objective
1.3 Statement of the problem
1.4 Need for the study
1.5 Scope of the study
1.6 Methodology
1.7 Sampling Design
1.8 Questionnaire Design
1.9 Data Analysis
1.10 Limitations
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Chapter 1
L. INTRODUCTION
Mutual funds are in the form of Trust (usually called Asset Management
Company) that manages the pool of money collected from various investors for
investment in various classes’ assets to achieve certain financial goals. We
can say that Mutual Fund is trusts which pool the savings of large number of
investors and then reinvests those funds for earning profits and then distribute
the dividend among the investors. In return for such services, Asset
Management Companies charge small fees. Every Mutual Fund / launches
different schemes, each with a specific objective. Investors who share the same
objectives invest particular Scheme. Each Mutual Fund, Scheme is managed
by a Fund Manager the help of his team of professionals (One Fund Manage
may be managing more than one scheme also).
1.1 INTRODUCTION TO THE STUDY

The Mutual Funds usually invest their funds in equities, bonds, debentures, call
money etc., depending on the objectives and terms of scheme floated by MF.
Now a day there are MF which even invest in gold or other asset classes.
What is NAV? Define NAV:
NAV means Net Asset Value. The investments made by a Mutual Fund
marked to market on daily basis. In other words, we can say that current
'market value of such investments is calculated on daily basis. NAV is arrived
at after deducting all liabilities (except unit capital) of` the fund from the
realizable value of all assets and dividing by number of units outstanding.
Therefore, NAV on a particular day reflects the realisable value that the
investor will get for each unit if the scheme is liquidated on that date. . This
NAV keeps on changing with the changes in the market rates of equity and
ATNCC, SHIVAMOGGA 4
bond markets. Therefore, the investments in Mutual Funds is not risk free, but
a good managed Fund can give you regular and higher returns than when you
can get from fixed deposits of a bank etc.
1.2 OBJECTIVE
The study is to comprehend the Mutual fund products and marketing by Canara
bank in Shimoga District.
1.2.1 Sub objectives

 To study and analyze the performance of Mutual Fund' Marketing in
Shimoga district.
 To analyze the customer purpose, perception and' difficulties While
taking availing Mutual funds from banks.
 To analyze the measures taken by bank for marketing of Mutual
products.
 To analyze the customer satisfaction towards Mutual fund products of
Canara Bank
1.3 STATEMENT OF THE PROBLEM

Banks are made for taking of deposits from the customers and to lend to needy.
But in the present scenario banks are facing problems in making profit due to
rising bad loans and non repayment of loans by many big borrowers thereby
decreasing the profitability of banks. There by banks are making tie up with
different subsidiary agencies for cross selling of Mutual fund products life
insurance, health insurance products. But branches are facing many problems
in marking of mutual fund products in banks due to many reasons.
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In turn the ‘customers or general public are also times reluctant to take Mutual
fund products from banks.
1.4 NEED FOR THE STUDY

The need for conducting this study is to have the practical knowledge about the
Mutual Fund products of Canara Bank have been offering to public and also its
relation with the customers and the bank mode of operations and to study the
various Mutual fund schemes. This study is also be helpful to understand the
perception of customer towards Mutual fund schemes of bank.
1.5 SCOPE OF THE STUDY

This study surrounds the area of Mutual fund practices of the preferred bank
i.e. Canara bank. This study may be helpful for understanding the perception of
the customers towards Mutual fund products and also financial performance of
the bank in this sector in Shimoga district.
1.6 METHODOLOGY
It’s a survey based research, the questionnaire will contain all required
information related to Mutual fund schemes that is being offered by Canara
bank, to its customers. The questionnaire will be designed for customers. The
questionnaires will be covering around 30-35 questions, by taking a random
sampling of 100 customers in Shimoga district. The questions are regarding
Mutual funds.
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1.6.1 Research design

The topic is chosen to know exactly the schemes provided by bank, to study
aims at analyzing system or procedure followed by bank and also determines
the type of customer.
1.6.2 Data collection
The data required for the project is collected through two main sources namely
primary data and secondary data.
1.6.3 Primary Data
Data which is collected for the first time keeping in the View the objective of
study is as primary data. Primary data for the study was collected from_ bank
loan customers. Information on Customer’s opinion was collected by
questioning and surveying them, it was done randomly selecting the branches
of Canara bank located in Shimoga district.
1.6.4 Secondary Data
Data available from certain publications or report are called secondary data.
1) Information collected from official website of Canara Bank.
2) Banking magazines and prospects have also been used for the study.
3) Some banking booklets of previous years have been used as a reference for
the study.
4) The Mutual funds circular of Canara Bank has been used to collect the
information about various schemes.
1.7 SAMPLING DESIGN

1.7.1 Sampling plan
It was found in the best research that samples selected should be covering all
Mutual fund schemes. So, that the random sampling of 100 customers in the
branches of circle office was considered.
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1.7.2 Sampling Unit

It was decided to interview existing customers of Mutual Fund in Canara Bank
for their strong suggestions, opinions of product and service.
1.7.3 Sampling Size
The size of the sample selected for the study was 100 respondents' of
customers of Canara Bank, for the purpose of the study.
1.7.4 Sampling Procedure
Under this project non probability sample method was used in determining the
sample size. The sample was selected on the basis of the convenience sample
method that is most accessible population members were selected.
1.8 QUESTIONNAIRE DESIGN

The questionnaire contains 33 questions; it is designed for the customers of the
bank. The questions are regarding agriculture loans.
1.9 DATA ANALYSIS

Data are useful only after analysis. Data analysis involves converting the series
of data recorded observations into descriptive statements. The survey will
carried out in Shimoga district Canara bank branches and the sample size was
100 customers.
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1.10 LIMITATIONS
 As there was no sufficient time for me to gather information on Mutual
Fund, it was difficult for me to study in detail. But necessary attempts
have been made to collect the required information to attain the
objectives of the study.
 The study is confined to Shiralakoppa branch Office only.
 Information is partly based on secondary data and hence the authenticity
of the study can be visualized and is measureable.
 The respondents were interviewed through questionnaire method only.
Hence reluctant on the part of respondents to answer some of the
questions is also a limitation.
 The respondents are restricted to only 100 for which non probability
sample method was used in determining the sample size.
 Level of accuracy of the results of research is restricted to the accuracy
level with the customers have given their answers and the accuracy
levels of the answer cannot be predicted.
 Bank may not disclose each and every aspect, as there will be a few
things, which are confidential.
ATNCC, SHIVAMOGGA 9
Chapter 2
BANKING PROFILE
2.1 Indian Banking Sector: Brief Introduction

2.2 Post-Independence
2.3 Nationalization
2.4 Liberalization
2.5 Technology
2.6 Recent Developments of Banking sector in India
ATNCC, SHIVAMOGGA 10
Chapter 2
Banking Profile
2.1 INDIAN BANKING SECTOR: BRIEF INTRODUCTION

India’s banking industry has evolved over a long period of more than
two centuries. Banking in India originated in the last decades of the 18th
century. The first bank was The General Bank of India which started in 1786,
and the Bank of Hindustan. The oldest bank in existence in India is the State
Bank of India, which originated in the Bank of Calcutta in June 1806, which
almost immediately became the Bank of Bengal. This was one of the three
presidency banks, the other two being the Bank of Bombay and the Bank of
Madras, all three of which were established under charters from the British
East India Company; For many years the Presidency banks acted as quasi-
central banks, as their successors. The “three banks merged in 1925 to form the
Imperial Bank of India, which, upon India’s independence, became the State
Bank of India. The first entirely Indian joint stock bank was the Oudh
Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next
was the Punjab National Bank, established in Lahore in 1895, which has
survived to the present and is now one of the largest banks in India.
Around the turn of the 20th Century, the Indian economy was passing
through a relative period of stability. Around five decades had elapsed since
the Indian Mutiny, and the social, industrial and other infrastructure had
improved. Indians had established small banks, most of which served particular
ethnic and religious communities.
The presidency banks dominated banking in India but there were also some
exchange banks and a number of Indian joint stock banks. All these banks
operated in different segments of the economy. The exchange banks, mostly
owned by Europeans, concentrated on financing foreign trade. Indian joint
stock banks were generally undercapitalized and lacked the experience and
maturity to compete with the presidency and exchange banks. This
segmentation let Lord Curzon to observe, "In respect of banking it seems we
are behind the- times.” are like some old fashioned sailing ship, divided by
solid wooden bulkheads into separate and cumbersome compartments.
The period between 1906 and 1911, saw the establishment of banks inspired by
the Swadeshi movement. The Swadeshi movement inspired local businessmen
and political figures to, found banks of and for the Indian community. A
number of banks established then have survived to the present such as Bank of
India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and
Central Bank of India. The fervour of Swadeshi movement lead to establishing
of many" private banks in Dakshina Kannada and Udupi district which were
unified earlier and known by the name South Canara ( South Kanara) district.
Four nationalised banks started in this district and also a leading private sector
bank. Hence undivided Dakshina Kannada district is known as "Cradle of
Indian Banking".
2.2 POST-INDEPENDENCE
The partition of India in 1947 adversely impacted the economies of Punjab and
West Bengal, paralyzing banking activities for months. India's independence
marked the end of a regime of the Laissez-faire for the Indian banking. The
Government of India initiated measures to play an active role in the economic
life of the nation, and the Industrial Policy Resolution adopted by the
government in 1948 envisaged a mixed economy. This resulted into greater

involvement of the state in different segments of the economy including
banking and finance
The major steps to regulate banking included:

In 1948, the Reserve Bank of India, India's central banking authority, was
nationalized, and it became an institution owned by the Government of India.
In 1949, the Banking Regulation Act was enacted which empowered the
Reserve Bank' of India (RBI) "to regulate,-control, and inspect the banks in
India.
The Banking Regulation Act also provided that no new bank or branch of an
existing bank could be opened without a license from the RBI, and no two
banks could have common directors.
However, despite these provisions, control and regulations, banks in India
except the State Bank of India, continued to be owned and operated by private
persons. This changed with the nationalization of major banks in India on 19
July, 1969.
2.3 NATIONALISATION
By the 1960s, the Indian banking industry had become an important tool to
facilitate the development of the Indian economy. At the same time, it had
emerged as a large employer, and a debate had ensued about the possibility to
nationalise the banking industry Indira Gandhi, the then Prime Minister of
India expressed the intention of the GOI in the' annual conference of the All
India Congress Meeting in a paper entitled "Stray thoughts on Bank
Nationalisation." The paper was received, with positive enthusiasm. Thereafter,
her move was swift and sudden, and the GOI issued an ordinance and
nationalised the 14 largest commercial banks with effect from the midnight of
July 19, 1969. Jayaprakash Narayan, a national leader of India, described the
step as a “masterstroke of political sagacity."'Within two weeks of the issue of
the ordinance, the Parliament passed the Banking Companies (Acquisition and
Transfer of Undertaking) Bill, and it received the presidential approval on 9
August, 1969.
A second “dose of nationalization of 6 more commercial banks followed in
1980. The stated reason for the nationalization was to give the government
more control of credit delivery. With the second dose of nationalization, the
GOI controlled around of the banking business for India. Later on, in the year
1993, the government merged New Bank of India with Punjab National Bank.
It was the only merger between nationalized banks and resulted in the
reduction of the number of nationalised banks from 20 to 19. After this, until
the 1990s, the nationalized banks grew at a pace of around 4%, closer to the
average growthrate of the Indian economy.
2.4 LIBERALISATION
In the early 1990s, the then Narsimha Rao government embarked on a policy of
liberalization, licensing a small number of. private banks. These came to be
known as New Generation tech savvy banks, and included Global Trust Bank
(the first of such new generation banks to be setup, which later amalgamated
with Oriental Bank of Commerce, Axis Bank(earlier' as UTI Bank), ICICI
Bank and HDFC Bank. This move, along with the rapid growth in the economy
of India, revitalized the banking sector in India, which has seen rapid growth
with strong contribution from all the three sectors of banks, namely,
government banks, private banks and
foreign banks.
2.5 TECHNOLOGY
In the five 'decades since independence, banking in India has evolved through
four distinct phases. During Fourth phase, also called as Reform Phase,
Recommendations of the Narasimham Committee (1991) paved the way for the
reform phase in the banking. Important initiatives with regard to the reform of
the banking system were taken in this phase. Important among these have been
introduction of new accounting and prudential norms relating to income
recognition, provisioning and capital adequacy, deregulation of interest rates &
easing of norms for entry in the field of banking.
Entry of new banks resulted in a paradigm shift in the ways of banking in
India. The growing competition, growing expectations led to increased
awareness amongst banks on the role and importance-of technology in
banking. The arrival of foreign and private banks with their superior state-of-
the-art technology-based services pushed Indian Banks also to follow suit by
going in for the latest technologies so as to meet the threat of competition and
retain their customer base.
Indian banking industry, today is in the midst of an IT revolution. A

combination of regulatory and competitive reasons has led to increasing'
importance of total banking automation in the Indian Banking Industry.
Information Technology has basically been used under two different avenues in
Banking. One is Communication and Connectivity and other is Business
Process Reengineering. Information technology enables sophisticated product
development, better market infrastructure, implementation of reliable
techniques for control of risks and helps the financial intermediaries to reach
geographically distant and diversified markets.
In view of this, technology has changed the contours of three major functions
performed by banks, i.e., access to liquidity, transformation of assets and
monitoring' of risks. Further, Information technology and the communication
networking systems have a crucial bearing on the efficiency of money, capital
and foreign exchange markets.
The Software Packages for Banking Applications in India had their beginnings
in the middle of 80s, when the Banks started computerising the branches in a
limited manner. The early 90s saw the plummeting hardware prices and advent
of cheap and inexpensive but high-powered PCs and servers and went in for
what was called Total Branch Automation (TBA) Packages. The middle late
90st witnessed the tornado of financial reforms, deregulation, globalization etc
coupled with rapid revolution in communication technologies and evolution of
novel concept of 'convergence' of computer and communication technologies,
like Internet, mobile / cell phones etc.
The banking sector has witnessed wide ranging changes under the influence of
the financial Sector reforms initiated during 2008. The approach to such
reforms in India has been one of gradual and non-disruptive progress through a
consultative process. The emphasis has been on deregulation and opening up
the banking sector to market forces. The Reserve Bank has been consistently
working towards the establishment of an enabling regulatory framework with
prompt and effective supervision as well as the development of technological
and institutional infrastructure. Persistent efforts have been made towards
adoption of international benchmarks as appropriate to Indian conditions.
While certain changes in the legal infrastructure are yet to be effected, the
developments so far have brought the Indian financial system closer to global
standards.
2.6 RECENT DEVELOPMENTS OF BANKING SECTOR IN INDIA

The Rs 64 trillion (USD 1.22 trillion) Indian banking industry has made
exceptional progress in last few years, even during the times when the rest of
the world was struggling with financial meltdown. Even today, financial
institutions across the world are facing the repercussions of the turmoil but the
Indian ones are standing stiff under the regulator's watchful eye and hence,
have emerged stronger.
Ratings agency' Moody’s believe that strong deposit base of Indian

lenders and Governments persistent support to public sector and private banks
would act as positive factors for the entire system amidst the negative global
scenario.
The sector has undergone significant developments and investments in
the recent past. Some of them are discussed hereafter along with the key
statistics and Government initiatives pertaining to the same.
2.6.1 Indian Banking Sector: Key Statistics
 According to the Reserve Bank of India (RBI)'s Quarterly Statistics on
Deposits and Credit of Scheduled Commercial Banks', March 2013,
Nationalised Banks, as a group, accounted for 53.0 per cent of the aggregate
deposits, while State Bank of India (SBI) and its associates accounted for
21.6 per5»cent. The share of New private sector banks, Old private sector
banks, Foreign banks and Regional Rural banks in aggregate deposits was
13.4 per cent, 4.6 per cent, 4.4 per cent and 3 per cent respectively.
 With respect to’ gross bank credit also, nationalised banks hold the highest
share of 52.8 per cent in the total bank credit, with SBI and its associates at
22.1 percent and New Private sector banks at 13-.2 per cent. Foreign banks,
Old private sector banks and Regional Rural banks held relatively lower
shares in the total bank credit with 4.9 per cent, 4.6 per cent and 2.4 per cent
respectively. Statement from RBI has revealed that bank advances grew
17.08 per cent annually as on December 16 .while bank deposits rose 18.03
per cent.
 RBI data shows that India raised US$ 1.6 billion through, External
Commercial Borrowings (ECBs) November 2011 for new projects, capital
outlay et al. 78 companies raised US$ 1.3 billion under automatic route and
US$ 253 million was raised under the approval route (it requires case-by-
case approval by the regulator).
 India's foreign exchange reserves stood at US$ 297 billion as on December
30, 2013.
 In recent years, deposits under non-resident Indians (NRI) schemes have
witnessed an upsurge. There was an inflow .Rs 14,763 crore (US$ 2.83
billion) under NRI deposits in 2012-13, which was 6.5 per cent higher from
2011-12. In 2013, the total of NRI deposits was Rs 2, 30,812 crore (US$
44.2 billion), compared to Rs 2,27,078 crore (US$ 43.5 billion) in 2012.
2.6.2 Indian Banking Sector: Recent Developments

 The US Export-Import Bank, with a commitment of US$ 7 billion, is, on a
way to diversify its portfolio in India by financing projects in education,
healthcare and agriculture. After Mexico, India is the second biggest
investment destination for the bank as the entity anticipates the country to
become the largest market in next 12-18 months.
 With green power projects become vary popular in India, especially in the
states of Gujarat and Rajasthan, banks are increasingly opening up to
projects from non-conventional (solar and wind) energy space. After
receiving project proposals that were meant for a particular

industry/consumer or group of industries/consumers for their own use,
banks are now getting projects that entire commercial viability (25-100
mega watts).
2.6.3 Government Initiatives

 Agreeing to Khandelwal Committee’s recommendation, the Government
has said that state-run banks will get two Chief Executives and the large
banks would get three Executive Directors (EDS) in their management
panel. Banks with a business of more-than Rs 300,000 crore (US$ 57.44
billion) are considered to be large entities. The third ED, however, would be
responsible for human resource development (HRD) and technology in the
bank.
 Non-resident Indians (NRIS) are crucial investors for banks as they form 10
per cent of total personal segment deposits," said Samir Kumar
Bhattacharya, General manager (NRI), State. Bank of India (SBI). In order
to encourage them, the RBI had deregulated interest, rates on Resident
(External) Rupee Deposits and Ordinary Non-Resident Accounts' (on
December 16, 2011) due to which banks are able to offer competitive rates
to NRIs. This move has further made India an attractive investment
destination for them.
 In ,order to prepare public sector banks for neck-to-neck competition ahead
and improve their performance in future, the Ministry of Finance has set
new benchmarks for them to achieve. The new benchmarks, that would
calculate their functional and financial capability to qualify for capital
infusion, entail three performance indicators savings and current deposit

ratio, employee-branch ratio and profit per employee.
2.6.4 Road Ahead

According to Chanda Kochhar, Managing Director and Chief Executive
Officer, ICICI Bank India's banking sector has the potential to become a Rs
200 trillion (US$ 3.83 trillion) industry by 2020 if the country's economy
grows at 8 per cent per annum over a long term as the growth of any country's
banking sector depends on the growth of that country's gross domestic product
(GDP).
Another report by The Boston Consulting Group (BCG) India, in
association with a leading industry organization and Indian Banks Associations
(IBA) predicts that Indian banking sector would become the world's third
largest in asset size by 2025. The report also analyses that mobile banking
would become the second largest channel of banking after ATMs. Given the
positive eco-system of the industry, regulatory and Government initiatives,
mobile banking is anticipated to enhance from 0.1 per cent of transactions in a
45 per cent financial inclusion base in 2010 to 34 per cent of the transactions
with 80 per cent rural inclusion base by 2020, as per the report.
The banking system in India can be broadly divided into three
categories, viz the central bank of the country known as the Reserve Bank of
India (RBI), the commercial banks and the co-operative banks. The Reserve
Bank of India is the supreme monetary and banking authority in this country
and it controls all the transaction. It maintains the reserves of all scheduled
banks and hence its name the Reserve Bank of India. Following shows the
structure of Indian Banking.
Chapter3
CANARA BANK PROFILE
 Origin of Canara Bank

 Significant Milestone of Bank
 Organization Structured
 Products and Services Profile
 Competitors and Market Share
ORIGIN OF CANARA BANK

Canara bank was founded as “Canara Bank Hindu Permanent Fund” in
1906 by late 'Shri Ammembal subba RaolPai, a philanthropist. This small seed
blossorned into a limited company as “Canara Bank Ltd” in l9l0. Canara Bank
is one of premier in the country, accredited with umpteen distinctions. The
present stature of the bank-is due to its strong fundamentals and quality
customer orientations. The bank today symbolizes a perfect blend of
commercial and social / developmental banking; the bank has, of its growth
trajectory over hundred years of its existence. Growth of Canara Bank is
phenomenal, especially after nationalization in the year 1969, attaining the
status of a national level player in terms of geographical reach and clientele
segments Eighties was characterized by business diversification for the Batik.
In June 2006, the Bank comp1éted a century of operation in the Indian banking
industry. The eventful journey of the Bank has been characterized by several
memorable milestones. Today, Canaral Bank occupies a premier position in the
commits of Indian banks. With an unbroken record of profits since its
inception, Canara Bank has several firsts to its credit. These include:
 Launching of Inter-City ATM Network
 Obtaining ISO Certification for a Branch
 Articulation of ‘Good Banking’ -Bank’s Citizen Charter
 Commissioning of Exclusive Mahila Banking Branch
 Launching of Excusive Subsidiary for IT Consultancy
 Issuing credit card for farmers
 . Providing Agricultural Consultancy Services
Over the years, the Bank has been scaling up its market position to
emerge as a major Financial Conglomerate with as many as nine subsidiaries
sponsored / institutions /joint ventures in India and abroad. As at Decmber
2013, the Bank has further expanded its domestic presence, with 3700
branches spread across all geographical segments. Keeping customer
convenience at the forefront, the Bank provides a wide array of alternative
delivery channels that include over 3500 ATMs- one of the highest among
nationalized banks- covering 732 centers, 2681 branches providing Internet
and Mobile Banking (IMB) eservices, advanced payment and settlement
system, all branches of the Bank have been to offer Real Time Gross
Settlement (RTGS) and National Electronic Funds Transfer (NEFT) facilities.
Not just in commercial banking, 'the Bank has also carved a distinctive
mark; in various corporate socials, responsibilities, namely, serving national
priorities, promoting rural development, enhancing rural self-employment ,
through several training institutes and spearheading financial inclusion
objective. Promoting an inclusive growth strategy, Which has been formed as
the basic plank of national policy agenda today, in fact deeply rooted in the
Bank's founding principles. "A good bank is not only the financial heart of the
community, but also one with an obligation of helping in every possible
manner to improve the economic conditions of the common people". These
insightful words of our 'founder continue to resonate even today in serving the
society with a purpose. The story of Canara Bank in its first century was due,
among others, to the continued patronage of its valued customers, stakeholders,
committed staff uncanny leadership ability demonstrated by its leaders at the
helm of affairs. We strongly. believe that the next century is going to be
equally rewarding and event till not only service of the nation but also in
helping the Bank emerge as a “Global Bank with Best practices”. This
justifiable beliefs founded on strong fundamentals, customer centricity,
enlightened leadership and a family like work culture.
FOUNDING PRINCIPLES:
 To remove Superstition and ignorance.
 To spread education among all to sub-serve the first principale.
 To in¢u1¢ate the habit of thrift and savings.
 To transform the financial institution not only as the financial heart of the
community but the social heart as well.
 To assist the needy.
 To work with sense of service and dedication.
 To develop a concern for fellow human being and sensitivity to the
surroundings With a view to make changes/remove hardships and
sufferings.
Sound founding principles, enlightened leadership, unique work culture

and remarkable adaptability to changing banking environment have enabled
Canara Bank to be a frontline Banking institution of global standards.
SIGNIFICANT MILESTONE OF BANK
lst July 1906 Canara Hindu Permanent Fund Ltd. formally registered With a
capital of 2000 shares of 50/- each, with 4 employees.
1910 Canara Hindu Permanent Fund renamed as Canara Bank Limited
1969 14 major in the country inc1uding Canara Bank; nationaliaed on July

19
1976 1000th branch inaugurated
1983 Overseas branch at London inaugurated Cancard (the Bank’s credit card)
launched
1984 Merger with the Laksmi Commercial Bank Limited
1985 Commissioning of Indo Hong Kong International Finance Limited
1987 Cabbank Mutual fund and Canfin Homes launched
1989 Venture Capital Fund started
1989-90 Canbank Factors Limited, the factoring subsidiary launched
1992-93 Became the first Bank to articulate and adopt the directive
principles of Good Banking
1995-96 Became the first Bank to be conferred with ISO 9002 certification
for one of its branches in Bangalore
2001-02 Opened a Mahila Banking Branch, first of its kind at Bangalore, for
catering exclusively to the financial requirements of Women clientele.
2002-03 Maiden IPO of the Bank
2003-04 Launched-Internet Banking Services
2004-05 l00% Branch computerization
2005-06 Entered 100th Year in Banking Service. Launched- core banking
Solution in select branches. Number One Position in Aggregate Business
among Nationalized Banks.
2006-07 Retained Number One Position in Aggregate Business among
Nationalized Banks. Signed MoUs for Commissioning Two JVs in Insurance
and Asset Management with international major’s viz., HSBC (Asia‘ Pacific)
Holding Robeco Groep N.V resbective1y.
2007-08 Latuiching of New Brand Identity. Incorporation of Insurance and

Asset Management JVs. Launching of Online-Trading portal. Launching of a
call Centre. Switchover to Basel II New capital Adequacy Framework
2008-09 The bank crossed the coveted 3 lakh crore in aggregate business.
The banks’s 3rd foreign branch at Shanghai commissioned.
2012-13 The Bank’s aggregate business crossed 6 1akh crore marks Net
profit of the Bank crossed 3000 crore. The _Bank’s branch network crossed the
3000 mark.
2013-14 Banks aggregate business crossed 7 lakh crore marks. Net profit
of
crossed 4000 crore. 100% coverage under Core Solution. The Bank’s 4th
foreign branch at Leicester and a Representative office at Sharjah, UAE,
opened. The Bank raised 1993 crore under QIP. Govt. holding reduced to
67.72% post QIP.
ORGANIZATION STRUCTURED
Chart showing the organizational structure of Canara Bank
Director
Chairman and Director Workmen Part time

Managing representing employee non-office
Director Govt. of Director
India Director
Executive Director Officer Representi

Director representing Employee ng Share
Reserve Bank Director holders
of India
CANARA BANK BRANCHES AND OFFICES

Canara Bank has a network of 3728 branches, spread over 22 states/ 4 union
territories of the country and overseas branch @ London which are
administrated through
 Head Office at Bangalore
 34 Circles offices/ International Division
 3728 Branches
BRANCHES ABROAD: CANARA BANK established its International

Division in 197, to supervise the functioning of it various foreign department to
give the required thrust to Foreign Exchange business, particularly
to meet the requirements of NRI’s. Though small in size the Bank’s presence
abroad has brought in considerable foreign business, particularly NRI Deposits.
The presence of bank is shown under;
 CANARA BANK, London UK (Branch)
 Indo Hong Kong international Finance Co Ltd Kong (subsidiary)
 AL Razouki International Exchange' company, Dubai, UAE.
According to the latest information, both the CANARA BANK and
State Bank of India have come into a mutual agreement as to both the banks
will be operating as a one unit in the Moscow.
PRODUCTS AND SERVICES PROFILE

No project is too big for the finance and no deposit is too small. The
bank is sensitive to people’s requirements and moves with the times. The rich
tradition of service has continued to keep it in good steady.
The detailed product profile of Canara Bank is as follow;
Personal banking
 Loan Products
 Technology products
 Mutual funds
 Insurance business
 International Services
 Card services
 Consultancy Services
 Depository Services
 Ancillary Services
Corporate banking
 Accounts & Deposits
 IPO Monitoring Activity
 Cash Management Services
 Merchant Banking Services
 Loans & Advances
 Syndication Services
 Cauara e-Tax
Remittance Facilities
 Remit money - Web Based Speed Remittance Facility
 Swift
 Lock Box Service
 Rupee Drawing Arrangement - Remittance Through Cheques Drawn On
Account
 Maintained with our bank
Internet banking
 Retail Banking
 Corporate Banking
Priority and SME banking

i. Priority credit
1. Agriculture And Rural Credit Schemes
2. Education Loan And Other Priority Sector Loans Government Sponsored
Schemes
3. Lead bank activities.

4. Lending to minority communities
ii. SME Business

iii. SME Market Desk
iv. Regional Rural Banks
v. Agricultural Consultancy Services
vi. Agri-Business Marketing Desk
vii. Rural Development
viii. Center for Entrepreneurship development for women
ix. Social Banking
COMPETITORS AND MARKET SHARE

Sr No Mutual Fund Name Average AUM %
1 HDFC Mutual Fund 1,034.42 12.70%
2 Reliance Mutual Fund 952.28 11.69%
3 ICICI Prudential Mutual Fund 853.03 10.48%
4 Birla Sun Life Mutual Fund 773.44 9.50%
5 UTI Mutual Fund 700.57 8.60%
6 SBI Mutual Fund 595.58 7.31%
7 Franklin Templeton Mutual Fund 448.12 5.50%
8 IDFC Mutual Fund 396.65 4.87%
9 Kotak Mahindra Mutual Fund 352.99 4.34%
10 DSP BlackRock Mutual Fund 304.86 3.74%
11 Tata Mutual Fund 179.66 2.21%
12 Deutsche Mutual Fund 170.59 2.10%
13 L&T Mutual Fund 150.79 1.85%
14 Sundaram Mutual Fund 139.47 1.71%
15 JPMorgan Mutual Fund 132.57 1.63%
16 Religare Invesco Mutual Fund 125.12 1.54%
17 Axis Mutual Fund 123.18 1.51%
18 LIC NOMURA Mutual Fund 79.76 0.98%
19 Canara Robeco Mutual Fund 76.16 0.94%
20 HSBC Mutual Fund 67.18 0.83%
21 JM Financial Mutual Fund 62.44 0.77%
22 Baroda Pioneer Mutual Fund 52.63 0.65%
23 IDBI Mutual Fund 47.71 0.59%
24 PRINCIPAL Mutual Fund 43.00 0.53%
25 Goldman Sachs Mutual Fund 41.49 0.51%

26 BNP Paribas Mutual Fund 35.38 0.43%
27 Morgan Stanley Mutual Fund 32.90 0.40%
28 Peerless Mutual Fund 28.35 0.35%
29 Taurus Mutual Fund 27.32 0.34%
30 Pramerica Mutual Fund 21.66 0.27%
31 Union KBC Mutual Fund 19.80 0.24%
32 Indiabulls Mutual Fund 16.06 0.20%
33 ING Mutual Fund 11.05 0.14%
34 PineBridge Mutual Fund 11.03 0.14%
35 BOI AXA Mutual Fund 10.82 0.13%
36 Mirae Asset Mutual Fund 5.08 0.06%
37 Motilal Oswal Mutual Fund 4.37 0.05%
38 Quantum Mutual Fund 3.15 0.04%
39 PPFAS Mutual Fund 2.67 0.03%
40 Escorts Mutual Fund 2.52 0.03%
41 Sahara Mutual Fund 2.33 0.03%
42 IIFL Mutual Fund 2.07 0.03%
43 Edelweiss Mutual Fund 1.94 0.02%
44 Daiwa Mutual Fund 0.51 0.01%
45 IL&FS Mutual Fund (IDF) - 0.00%
46 Shriram Mutual Fund - 0.00%
47 SREI Mutual Fund (IDF) - 0.00%
Grand Total 8,142.68 100.0%
Chapter 4
CONCEPTUAL BACKGROUND
 Introduction
 Advantages of Mutual Fund:
 Disadvantages of Mutual Fund:
 Types of Fund
 Money Market Mutual Fund
 Different Plans of Mutual Fund
 Risks of Mutual Funds:
INTRODUCTION
A Mutual Fund is a trust that pools the savings of a number of investors
who have 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 appreciation
realized is shared by its unit holders in proportion to the number of units owned
by them. Thus a Mutual Fund is the most suitable investment for the common
man as it offers an opportunity to invest in a diversified, professionally
managed basket of securities at a relatively low cost.
A mutual fund is a type of professionally managed investment fund that

pools money from many investors to purchase securities. While there is no
legal definition of the term mutual fund, it is most commonly applied only to
those collective investment vehicles that are regulated and sold to the general
public. They are sometimes referred to as "investment companies" or
"registered investment companies". Hedge funds are not considered a type of
mutual fund, primarily because they are not sold publicly.
A mutual fund is an ideal investment vehicle for today’s complex and

modern scenario. Markets for equity shares, bonds and other fixed income
instruments, real estate, derivatives and other assets have become mature and
information driven price changes in these assets are driven by global events
occurring in faraway places. A typical individual is unlikely to have the
knowledge, skills, inclination and time to keep track of events, understand their
implications and act speedily. Individuals also find it difficult to keep track of
ownership of assets, investments, brokerage dues and bank transactions etc.
A mutual 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. In effect the mutual fund vehicle
exploits economics of scale in all three areas – Research, investments and
transaction processing. While the concept of individuals coming together to
invest money collectively is not new, the mutual fund in its present form is a
20th century phenomenon. In fact mutual fund gained popularity only after the
Second World War. Globally there are thousands of firms offering mutual
funds with different investments objectives. Today mutual funds collectively
manage almost as much as or more money as compared to banks.
ADVANTAGES OF MUTUAL FUND:

Affordability
A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending
upon the investment objective of the scheme. An investor can buy in to a
portfolio of equities, which would otherwise be extremely expensive. Each unit
holder thus gets an exposure to such portfolios with an investment as modest as
Rs.500/-. This amount today would get you less than quarter of an Infosys
share.
Diversification
It simply means that spread investment across different securities. This kind of
a diversification may add to the stability of returns, for example during one
period of time equities might underperform but bonds and money market
instruments might do well enough to offset the effect of a slump in the equity
markets. Similarly the information technology sector might be faring poorly
but the auto and textile sectors might do well and may protect your principal
investment as well as help you meet your return objectives.
Variety
Mutual funds offer a tremendous variety of schemes. This variety is beneficial
in two ways: first, it offers different types of schemes to investors with
different needs and risk appetites; secondly, it offers an opportunity to an
investor to invest sums across a variety of schemes, both debt and equity. For
example, an investor can invest his money in a Growth Fund (equity scheme)
and Income Fund (debt scheme) depending on his risk appetite and thus create
a balanced portfolio easily or simply just buy a Balanced Scheme.
Professional Management
Qualified investment professionals who seek to maximize returns and
minimize risk monitor investor's money. When investors would like to invest
their money in to a mutual fund, they are handing their money to an investment
professional who has experience in making investment decisions. It is the Fund
Manager's job to (a) find the best securities for the fund, given the fund's stated
investment objectives; and (b) keep track of investments and changes in market
conditions and adjust the mix of the portfolio, as and when required.
Tax Benefits
Any income distributed after March 31, 2002 will be subject to tax in the
assessment of all Unit holders. However, as a measure of concession to Unit
holders of open-ended equity-oriented funds, income distributions for the year
ending March 31, 2003, will be taxed at a confessional rate of 10.5%.
In case of Individuals and Hindu Undivided Families a deduction up to Rs.

9,000 from the Total Income will be admissible in respect of income from
investments specified in Section 80L, including income from Units of the
Mutual Fund. Units of the schemes are not subject to Wealth-Tax and Gift-Tax.
Regulations
Securities Exchange Board of India (“SEBI”), the mutual funds regulator has
clearly defined rules, which govern mutual funds. These rules relate to the
formation, administration and management of mutual funds and also prescribe
disclosure and accounting requirements. Such a high level of regulation seeks
to protect the interest of investors.
Liquidity
In open-ended mutual funds, investor can redeem all or part of his units any
time he wish. Some schemes do have a lock-in period where an investor cannot
return the units until the completion of such a lock-in period.
Convenience
An investor can purchase or sell fund units directly from a fund, through a
broker or a financial planner. The investor may opt for a Systematic Investment
Plan (“SIP”) or a Systematic Withdrawal Advantage Plan (“SWAP”). In
addition to this an investor receives account statements and portfolios of the
schemes.
Flexibility
Mutual Funds offering multiple schemes allow investors to switch easily
between various schemes. This flexibility gives the investor a convenient way
to change the mix of his portfolio over time.
Transparency
Open-ended mutual funds disclose their Net Asset Value (“NAV”) daily and
the entire portfolio monthly. This level of transparency, where the investor
himself sees the underlying assets bought with his money, is unmatched by any
other financial instrument. Thus the investor is in the knowledge of the quality
of the portfolio and can invest further or redeem depending on the kind of the
portfolio that has been constructed by the investment manager.
DISADVANTAGES OF MUTUAL FUND:

No Guarantees
No investment is risk free. If the entire stock market declines in value, the
value of mutual fund shares will go down as well, no matter how balanced the
portfolio. Investors encounter fewer risks when they invest in mutual funds
than when they buy and sell stocks on their own. However, anyone who invests
through a mutual fund runs the risk of losing money.
Fees and commissions
All funds charge administrative fees to cover their day-to-day expenses.
Some funds also charge sales commissions or "loads" to compensate brokers,
financial consultants, or financial planners.
Taxes
During a typical year, most actively managed mutual funds sell anywhere from
20 to 70 percent of the securities in their portfolios. Fund makes a profit on its
sales, will pay taxes on the income they receive, even reinvest the money can
be done.
Management Risk
When invest in a mutual fund, investors depend on the fund's manager to
make the right decisions regarding the fund's portfolio. If the fund manager
does not perform as well as expected they might not make as much money on
their investment as expected. Of course, if they invest in Index Funds, they
forego management risk, because these funds do not employ managers. Mutual
Fund industry is required to address this problem, as we believe that bigger
the size of asset, bigger is the problem. Large funds end up paying more for the
stock they purchase and sell them at a lower price thus reducing the returns to
the investors.
Evolution of Mutual Fund Industry:
Mutual Fund Industry
I PHASE
1964…..1987
II PHASE
1987…..1993
III PHASE
1993…….2003
IV PHASE
Since 2003
Fig 2
First Phase – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. 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 1964. At the end of 1988 UTI had
Rs.6, 700 cores of assets under management.
Second Phase – 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public
sector banks and Life Insurance Corporation of India (LIC) and General
Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI
Mutual Fund established in June 1987 the mutual fund industry had assets
under management of Rs.47, 004 cores.
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. 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. As at the end of January 2003, there were 33 mutual
funds with total assets of Rs. 1, 21,805 cores.
Fourth Phase – Existing period.

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 corers as at
the end of January 2003; the second is the UTI Mutual Fund Ltd, sponsored by
SBI, PNB, BOB and LIC. With the bifurcation of the erstwhile UTI which had
in March 2000 more than Rs.76, 000 cores 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, As at the end of September, 2004, there were 29 funds,
which manage assets of Rs.153108 cores under 421 schemes.
Structure of Fund Industry:
AMFI
Fig 3
Sponsor: Sponsor is the person who acting alone or in combination with

another body corporate establishes a mutual fund. Sponsor must contribute at
least 40% of the net worth of the Investment Managed and meet the eligibility
criteria prescribed under the Securities and Exchange Board of India (Mutual
Funds) Regulations, 1996.
Trust: The Mutual Fund is constituted as a trust in accordance with the
provisions of the Indian Trusts Act, 1882 by the Sponsor. The trust deed is
registered under the Indian Registration Act, 1908.
Trustee: Trustee is usually a company (corporate body) or a Board of Trustees

(body of individuals). The main responsibility of the Trustee is to safeguard the
interest of the unit holders and inter alias ensure that the AMC functions in the
interest of investors and in accordance with the Securities and Exchange Board
of India (Mutual Funds) Regulations, 1996, the provisions of the Trust Deed
and the Offer Documents of the respective Schemes. At least 2/3rd directors of
the Trustee are independent directors who are not associated with the Sponsor
in any manner.
Asset Management Company (AMC):

The AMC is appointed by the Trustee as the Investment Manager of the
Mutual Fund. The AMC is required to be approved by the Securities and
Exchange Board of India (SEBI) to act as an asset management company of the
Mutual Fund. At least 50% of the directors of the AMC are independent
directors who are not associated with the Sponsor in any manner. The AMC
must have a net worth of at least 10 cores at all times.
Registrar and Transfer Agent:

The AMC if so authorized by the Trust Deed appoints the Registrar and
Transfer Agent to the Mutual Fund. The Registrar processes the application
form, redemption requests and dispatches account statements to the unit
holders. The Registrar and Transfer agent also handles communications with
investors and updates investor records.
Institutional investor:
They have qualified treasury personnel to look at investment option. They also
have access to professional advice from investment bankers. This class of
investors understands the risk reward relationship and can take informed
decisions.
High net-worth individuals (HNI):

These persons are savvy investors and have access to professional advice. They
are able to understand the product features and can take a informed view about
investing in mutual fund products.
Retail Savers:
This class of investors has been traditionally investing in fixed deposits mainly
of banks. They have a certain mind set which need to be changed. A mutual
fund need to essentially focus on this segment because this is huge base and
has a potential to grow.
Association of Mutual Fund of India: (AMFI)

AMFI, the apex body of all the registered Asset Management Companies was
incorporated on August 22, 1995 as a non-profit organization. As of now, all
the 34 Asset Management companies that have launched mutual fund schemes
are its Members. AMFI functions under the supervision and guidance of a
Board of Directors.
Objectives
To define and maintain high professional and ethical standards in all areas of
Operation of mutual fund industry.
To recommend and promote best business practices and code of conduct to be
followed by members and others engaged in the activities of mutual fund and
asset management including agencies connected or involved in the field of

capital markets and financial services.
To interact with the Securities and Exchange Board of India (SEBI) and to
represent to SEBI on all matters concerning the mutual fund industry.
To represent to the Government, RBI and other bodies on all matters relating to
the
MUTUAL FUND INDUSTRY.

To undertake nationwide investor awareness programmed so as to promote
proper understanding of the concept and working of mutual funds.
Calculation of NAV (Net Asset Value)

The most important part of the calculation is the valuation of the assets owned
by the fund. Once it is calculated, the NA V is simply the net value of assets
divided by the number of units outstanding. The detailed methodology for the
calculation of the asset value is given below.
Asset value is equal to:
Sum of market value of shares/debentures + Liquid assets/cash held + Dividends/interest

accrued - Amount due on unpaid assets - Expenses accrued but not paid
Details on the above items:

For liquid shares/debentures, valuation is done some the basis of the last or
closing market price on the principal exchange where the security is traded.
For illiquid and unlisted and/or thinly traded shares/debentures, the value has to
be estimated. For shares, this could be the book value per share or an estimated
market price if suitable benchmarks are available. For debentures and bonds,
value is estimated on the basis of yields of comparable liquid securities after
adjusting for illiquidity. Valuation of debentures and bonds is a big problem
since most of them are unlisted and thinly traded. This gives considerable
leeway to the AMCs on valuation and some of the AMCs are believed to take
advantage of this and adopt flexible valuation policies depending on the
situation.
Interest is payable on debentures bonds on a periodic basis say every 6 months.
But, with every passing day, interest is said to be accrued, at the daily interest
rate, which is calculated by dividing the periodic interest payment with the
number of days in each period. Thus, accrued interest on a particular day is
equal to the daily interest rate multiplied by the number of days since the last
interest payment date.
Usually, dividends are proposed at the time of the Annual General meeting and
become due on the record date. There is a gap between the dates on which it
becomes due and the actual payment date. In the intermediate period, it is
deemed to be "accrued".
(Total Unit Capital + Reserves + Income (net of expenses) + Appreciation/-
Depreciation in investments)
ATNCC, SHIVAMOGGA (No of Units out Standing) 46

Repurchase Price
Is the price at which a close-ended scheme repurchases its units and it may
include a back-end load. This is also called Bid Price.
Redemption Price
Is the price at which open-ended schemes repurchase their units and close-
ended schemes redeem their units on maturity? Such prices are NAV related.
Repurchase or ‘Back-end’ Load

Is a charge collected by a scheme when it buys back the units from the unit
holders?
Sales Load
Is a charge collected by a scheme when it sells the units. Also called, ‘Front-
end’ load. Schemes that do not charge a load are called ‘No Load’ schemes.
Sales Price
Is the price investor pay when he invests in a scheme? Also called as Offer
Price. It may include a sales load.
CLASSIFICATION OF MUTUAL FUND SCHEMES:

Any mutual fund has an objective of earning income for the investors and or
getting increased value of their investments. To achieve these objectives
mutual funds adopt different strategies and accordingly offer different schemes
of investments .On these bases the simplest way to categorize schemes would
be group these in to two broad classifications.
TYPES OF FUND
CLOSE ENDED FUNDS
The corpus of the fund and its duration are prefixed. In other words, the corpus
of the fund and the number of units are determined in advance. Once the
subscription reaches the pre-determined level, the entry of investors is closed.
After the proceeds are fixed period, the entire corpus is disinvested and the
proceeds are distributed to the various units’ holders in proportion to their
holding. Thus, the fund ceases to be a fund, after the final distribution.
Features:
The period of the fund is definite and fixed beforehand.
Once the period is over and the target is reached, the door is closed for
investors. They cannot purchase any more units
These units are publicly traded through stock exchange and generally, there is
no re purchase facility by the fund.
The main objective of this fund is capital appreciation.
At the time of redemption, the entire investment pertaining to a close ended

scheme is liquidated at the proceeds are distributed among the unit holders.
From the investors’ point of view, it may attract more tax since the entire
capital appreciation is realized into at once stage itself.
If the market condition is not favorable, it may also affect the investors since
he may not get the full benefit of capital appreciation in the value of the
investment.
OPEN ENDED SCHEME

The size of the fund is not pre determined and period is not prefixed the
investors are free to buy and sell any number of units at any point of time.
Features
There is complete flexibility with regard to once investment or dis investment.
In other words there is free entry and exit of investors in an open ended fund.
These units are not publicly traded but, the fund is ready to repurchase them
and resell them at any time.
The main objective of this one is income generation. The investors get
dividend, rights or bonuses as rewards for their investments.
The investor is offered instant liquidity in the sense that the units can be sold
on any working day to the fund.
The listed prices are very close to there net asset value. The fund fixes a
different price for their purchases and sales.
Income Fund
This fund aims at generating and distributing regular income to the
members on a periodical basis. It concentrates more on the distribution of
regular income and it also sees that the average return is higher than that of the
income from bank deposits.
Features:
The investor is assured of regular income at periodic intervals, say half - yearly
or yearly and so on.
The main objective of this type of fund is to declare regular dividends and not
capital appreciation.
The patterns of investment are oriented towards high and fix income yielding
securities like debentures, Bonds etc.
This is the best suited to the old and retired people who may not he any regular
income.
It concerns itself with short run gains only.
PURE GROWTH FUND:

Growth funds concentrate mainly on long run gains, that is capital
appreciation. They do not offer regular income and they aim at capital
appreciation in the long run.
PURE GROWTH FUND:

Growth funds concentrate mainly on long run gains, that is capital
appreciation. They do not offer regular income and they aim at capital
appreciation in the long run.
Features
The growth oriented fund aims at meeting the investors need for capital
appreciation.
The investment strategy conforms to the fund objective by investing the fund
the predominantly on equities with high growth potential
The fund tries to get capital appreciation by taking much risks and investing on
risk bearing equities and high growth equity shares.
The fund may declare dividend, but its principal objective is only capital
appreciation.
This is best suited to salary and business people who have high risk bearing
capacity and ability to differ liquidity. They can accumulate wealth for future
needs.
BALANCED FUND:
It is nothing but a combination of both income and growth funds. It aims at
distributing regular income as well as capital appreciation. This is achieved by
balancing the investments between the high growth equity shares and also the
fixed income earning securities.
SPECIALISED FUNDS:
A large number of specialized funds are in existence aboard. They offer special
scheme needs specific needs of specific categories of people like pensioners,
windows etc. There are also funds for investments in securities of specified
area. Like Japan fund, south Korea fund etc. these security funds open the door
for foreign investors to invest on the domestic securities of the countries. Funds
may be confined to one particular sector or industries like fertilizer,
automobiles, petroleum etc. these fund carry are high risk taking investors who
prefer this type of fund
MONEY MARKET MUTUAL FUND

These funds are basically open ended mutual funds and as such they have all
the features of the open ended fund. But, they invested in highly liquid and safe
securities like commercial paper, bankers acceptances, certification of deposits,
treasury bills etc. these instruments are called money market instruments.
They take the place of shares, debentures and bonds in the capital market. They
pay money market rate of interests, these funds called money market funds in
the U.S.A. and they have been functioning since 1972. Investors generally use
it as a “parking place” or “stop gap arrangements” for their cash resources till
they finally decide about the proper avenue for their investment, that is long –
term financial assets like bonds and stocks.
TAXATION FUNDS
A taxation fund is basically a growth oriented fund. But, it offers tax rebates to
the investors either in the domestic or foreign capital market. It is suitable to
salaried people who wants enjoy the rebates particularly during the month of
February and March. In India, at present the law relating to tax rebates is
covered under sec.88 of the income tax act, 1961. An investor is entitled to get
20% rebates in income of Rs 10,000/- per annum. The tax saving magnum of
SBI capital market limited is the best example for the domestic type. UTI`s us
$60 million India fund, based in the USA, is an example for the foreign type.
LEVERAGE FUND
These funds are also called borrower funds since they are used primarily to
increase the size of the value of portfolio of a mutual fund. When the value
increases, the earning capacity of the fund also increases. The gains are
distributed to the unit holders this is resorted to only when the gains from the
borrowed funds are more than the cost of borrowed funds.
DUAL FUNDS
This is a special kind of closed end fund. It provides a single investment
opportunity for two different types of investors for this purpose, it sells two
types of investment stocks they are income shares and capital shares. Those
investors who seek current investment income can purchase income shares.
They receive all the interest and dividend earned from the entire investment
portfolio. However, they are guaranteed a minimum annual dividend payment.
The holders of capital shares receive all the capital gains earned on those
shares and they are not entitled to receive any dividend of any type. In this
respect, the dual is different from a balance fund.
INDEX FUNDS
Index funds refer to those funds where the portfolios are designed in such a
way that they reflect the composition of some broad based market index. This
is done by holding securities in proportion as the index itself. The value of
these index linked fund will automatically go up whenever the market index
goes up and vice versa. Since the construction of portfolio is entirely based
upon maintaining proper proportion of the index being followed, it involves
less administration expenses, lower transaction costs, less number of portfolio
managers etc. it is so because only fewer purchase and sale of securities would
take place.
BOND FUNDS
These funds have portfolios consisting mainly of fixed income securities like
bonds. The main thrust of these funds is mostly on income rather than capital
gains. They differ from income funds in the sense income funds offer an
average returns higher than that from bank deposits and also capital gains
lesser than that in equity shares.
AGGRESSIVE GROWTH FUNDS

These funds are just the opposite of bond funds. These funds are capital gains
oriented and thus the thrust area of these funds is `capital gains`. Hence, these
funds are generally invested in speculation stocks. They may also use
specialized investment techniques like short term trading, option writing etc.
naturally, these funds tend to be volatile in nature.
OFF-SHORE MUTUA FUNDS

Off-shore mutual funds are those funds which are meant for non-residential
investors. In other words, the sources of investments for these funds are from
abroad. So, they are regulated by the provision s of the foreign countries where
those funds are registered. These funds facilitate flow of funds across different
countries, with free and efficient movement of capital for investment and
repatriation. Off shore are preferred to direct foreign investment, since, it does
not allow foreign domination over host country’s corporate sector. However,
these funds involve much currency and country risk and hence they generally
yield higher return.
PROPERTY FUND
It is a real estate mutual fund. It is an investment vehicle which buys, develops,
manages and sells real estate assets. Its investment also includes shares/bonds
of companies involved in real estate and mortgage backed companies.
FUND OF FUNDS
A fund of fund schemes is a mutual fund scheme that invests in other mutual
fund schemes. The concept is widely prevalent aboard. Mutual funds in India
are being allowed to launch fund of funds.
In India, these funds are subject to the approval of the department of economic
affairs, ministry of finance and the RBI monitors such funds by issuing
directions then and there. In India, a number of shore funds exist. `India fund `
and `Indian growth fund` were floated by UTI in U.K and U.S.A. respectively.
DIFFERENT PLANS OF MUTUAL FUND

1. Growth Plan and Dividend Plan:-
A growth plan under a scheme wherein the returns from investments are
reinvested and very few income distributions, if any, are made. The investor
thus only realizes capital appreciation on the investment. This plan appeals to
investors in the high-income bracket. Under the dividend plan, income is
distributed from time to time. This plan is ideal to those investors requiring
regular income.
2. Dividend Reinvestment Plan:-

Dividends plans of schemes carry an additional option for reinvestment of
income distribution. This is referred to as the dividend reinvestment plan.
Under this plan, dividends declared by a fund are reinvested on behalf of the
investor, thus increasing the number of units held by the investors.
3 Automatic Investment Plan:-

Under an Automatic Investment Plan (AIP) also called Systematic Investment
Plan (SIP), the investor is given the option for investing in a specified
frequency of months in a specified scheme of the Mutual Fund for a constant
sum of investment. AIP allows the investors to plan their savings through a
structured regular monthly savings program.
4 Automatic Withdrawal Plan:-

Under the Automatic Withdrawal Plan (AWP) also called Systematic
Withdrawal Plan (SWP), a facility is provided to the investor to withdraw a
pre-determined amount from his fund at a pre-determined interval.
PRESENT STATUS OF MUTUAL FUND

The total asset under management of mutual fund industry has increased by
11% from Rs2,31,358 crores to Rs 2,57,528 crores as of April end. The rise in
assets could be attributed to accretions in liquid fund assets. April also saw a
change in pecking order, with Prudential ICICI Mutual Fund regaining its top
slot among private sector funds in terms of AUM. Reliance Mutual Fund
slipped to third position with total asset under management at Rs26,420 crores.
UTI retained its top position with total assets under management at 30,108
crores.
Objectives of investing in Mutual Funds:

There are several benefits from investing in a Mutual Fund:
Small investments:
Mutual funds help you to reap the benefit of returns by a portfolio spread
across a wide spectrum of companies with small investments.
Professional Fund Management:

Professionals having considerable expertise, experience and resources manage
the pool of money collected by a mutual fund. They thoroughly analyse the
markets and economy to pick good investment opportunities.
Spreading Risk:
An investor with limited funds might be able to invest in only one or two
stocks/bonds, thus increasing his or her risk. However, a mutual fund will
spread its risk by investing a number of sound stocks or bonds. A fund
normally invests in companies across a wide range of industries, so the risk is
diversified.
Transparency:
Mutual Funds regularly provide investors within formation on the value of
their investments. Mutual Funds also provide complete portfolio disclosure of
the investments made by various schemes and also the proportion invested in
each asset type.
Choice:
The large amount of Mutual Funds offer the investor a wide variety to choose
from. An investor can pick up a scheme depending upon his risk/ return profile.
Regulations:
All the mutual funds are registered with SEBI and they function within the
provisions of strict regulation designed to protect the interests of the investor.
RISKS OF MUTUAL FUNDS:

Mutual funds are not free from risks. It is so because basically the mutual funds
also invest in stick market on shares which are volatile in nature and are not
risk free. Hence, the following risks are inherent in their dealings.
MARKET RISKS:
There are certain risks associated with every kind of investment on shares.
They are called market risks. These market risks can be reduced, but can not be
completely eliminated even by a good investment management. The prices of
shares are subject to wide price fluctuations depending upon market conditions
over which nobody has a control. Moreover, every economy has to pass
through a cycle- boom, recession, slump and control. The phase of the business
cycle affects the market condition to a larger extent.
SCHEME RISKS:
There are certain risks inherent in the scheme itself. It all depends upon the
nature of the scheme. For instance, in a pure growth scheme, risks are greater.
It is obvious because if one expects more returns as in the case of growth
scheme, one has to take more risks.
INVESTMENT RISKS:
Whether the mutual fund makes money in share or loses depends upon the
investment expertise of the Asset management company (AMC), the
investment goes wrong, the fund has to suffer a lot. The investment expertise
of various funds are different and it is reflected on the returns which they offer
to investors.
BUSINESS RISKS:
The corpus of mutual fund might have been invested in a company’s shares. If
the business of that company suffers any set back, it cannot declare any
dividend. It may even go to the extent of winding up its business. Though the
mutual fund can withstand such a risk, its income paying capacity is affected.
POLITICAL RISKS:
Successive government bring with them fancy new economic ideologies and
policies. It is often said that many economic decisions are politically
motivated, changes in government brings in risks of uncertainty which every
player in the financial service industry has to face. So mutual funds are no
exception to it.
INVESTORS RIGHTS:
The SEBI (MF) Regulations, 1993 contains specific provisions with regard s to
investor servicing. Certain rights have been guaranteed to the investors as per
the above Regulations. They are as follows
UNIT CERTIFICATE
An investor has a right to receive his unit certificates on allotment within a
period of 10 weeks from the date of closure of subscription lists in the case of a
close ended scheme and 6 weeks from the date of closure of the initial offer in
the case of an open ended scheme.
TRANSFER OF UNITS
An investor is entitled to get the units certificate transferred within a period of
30 days from the date of lodgment of the certificates along with the relevant
transfer forms.
REFUND OF APPLICATION MONEY

If a mutual fund is not able to collect the statutory amount (close ended funds
Rs 20 core, open ended funds Rs 50 core or 60% of the targeted amounts which
ever is higher) it has to return the application money as refund within a period
of 6 weeks from the date of closure of subscription lists. If the refund is
delayed beyond this period, each application is entitled to get the refund with
interests at rate of 15% p.a. for period of delay.
AUDITED ANNUAL REPORTS

Every mutual fund is under an obligation to its investors to publish the audited
annual reports and unaudited half yearly report through prominent newspapers
in respect of each of its schemes within 6 months and 3 month respectively of
the date of closure of accounts.
SELECTION OF FUND
Mutual funds are not magic institutions which can bring treasure to the million
of their Investors within a short span of time. All funds are equal to start with.
But in due course Of time, some excel the other. It all depends upon the
efficiency with which the fund is being managed by the professionals of the
fund. Hence, the investor has to be very careful in selecting a fund. He must
take into account the following factors for evaluating the performance of any
fund and then finally decide one he has to choose.
OBJECTIVES OF FUND
He must see the objectives of the fund –whether income oriented or growth
oriented.
Income oriented are backed mainly by fixed by interests yielding securities like
debentures and bonds where as growth oriented are backed by equities. It is
obvious that
Growth oriented schemes are more risky than income oriented schemes, and
hence, the returns from such schemes are not comparable with each other. The
investor should compare the particular scheme of one fund with the same
scheme of another fund the objective of the scheme which he purpose to
choose
CONSISTANCY OF PERFORMANCE
A mutual fund is always intended to give steady long term returns, and hence,
the investor should measures the performance of a fund over a period of at least
three years. Investors are satisfied with a fund that shows a steady and
consistence performance than a fund which performs superbly in one year and
other than the next year. Consistency in performance is a good indicator of its
investment expertise.
HISTORICAL BACKGROUND
The success of any fund depends upon the competence of the management, its
integrity, periodicity and experience. The funds integrity should be suspicion.
A good historical record could be better horse to bet on the new funds. It is in
accordance with the maxim “a know devil is better than an unknown angel”.
COST OF OPERATION
Mutual funds seek to do a better job of the invisible funds at a lower cost than
the individuals could for their themselves. Hence, the prospective investor
should scrutinize the expense ratio of the fund and compare it with others.
Higher the ratio, lower will be the actual returns to investor.
CAPACITY FOR INNOVATION

The efficiency of fund manager can be tested by means of the innovative
schemes he has introduced in the market somas to meet the divers needs of
investors. An innovator will be always a successful man. It is quite natural that
an Investor will look for funds which are capable of introducing innovations in
the financial market.
INVESTOR SERVICING
The most important factor to be considered is prompted and efficient servicing.
Service like quite response to investor queries, prompt dispatch of unit
certificate, quick transfer of units etc. will go long way in creating a lasting
impression in the minds of investors.
MARKET TRENDS
Traditionally it has been found that the stock market index and the inflation
rate tend to move in the same direction where as the interest rates and the stock
market index tend to move in the opposite direction. This sets the time for the
investor to enter into the fund and come out of it. A prudent investor must keep
his eyes on the stock market index, interest rate and the inflation rate. Of
course, there is no scientific reasoning behind it.
TRANSPARANCY OF THE FUND MANAGEMENT

The success of a mutual fund depends to a large extent on the transparency of
the fund management. In these days investor awareness, it is very vital that the
fund should disclose the complete details regarding the operation of the fund. It
will go long way in creating a lasting impression in the minds of the investors
to patronize the for ever.
Regulatory Aspects of Mutual Funds:

1. Schemes of a Mutual Fund
The asset management company shall launch no scheme unless the trustees
approve such scheme and a copy of the offer document has been filed with the
Board. Every mutual fund shall along with the offer document of each scheme
pay filing fees. The mutual fund and asset Management Company shall be
liable to refund application money to the applicants
The asset management company shall issue to the applicant whose application
has been accepted, unit certificates or a statement of accounts specifying the
number of units allotted to the applicant as soon as possible but not later than
six weeks from the date of closure of the initial subscription list.
2. Procedure for Action In Case Of Default:

On and from the date of the suspension of the certificate or the approval, as the
case may be, the mutual fund, trustees or asset management company, shall
cease to carry on any activity as a mutual fund, trustee or asset management
company, during the period of suspension, and shall be subject to the directions
of the Board with regard to any records, documents, or securities that may be in
its custody or control
3. Restrictions on Investments:
A mutual fund scheme shall not invest more than 15% of its NAV in
debt Instruments issued by a single issuer, such investment limit may be
extended to 20% of the NA V of the scheme with the prior approval of the
Board of Trustees and the Board of Asset Management Company.
A mutual fund scheme shall not invest more than 10% of its NAV in unrated
debt instruments issued by a single issuer and the total investment in such
instruments shall not exceed 25% of the NA V of the scheme
No mutual fund under all its schemes should own more than ten per cent of any
company's paid up capital carrying voting rights.
A scheme may invest in another scheme under the same asset management
company or any other mutual fund without charging any fees.
The initial issue expenses in respect of any scheme may not exceed six percent
of the funds raised under that scheme.
Every mutual fund shall buy and sell securities on the basis of deliveries and
shall in all cases of purchases, take delivery of relative securities and in all
cases of sale, deliver the securities and shall in no case put itself in a position
whereby it has to make short sale or carry forward transaction or engage in
badly finance.
Pending deployment of funds of a scheme in securities in terms of investment
objectives of the scheme a mutual fund can invest the funds of the scheme in
short term deposits of scheduled commercial banks.
No mutual fund scheme shall make any investment in
Any unlisted security of an associate or group company of the sponsor; or
Any security issued by way of private placement by an associate or group
company of the sponsor;
Chapter 5
 Analysis of data
 Introduction
 Interpretation of data
Introduction
Managers take decisions on the basis of available information or data.

Raw data may be available to managers in scattered form. Unless data are
properly collected, analyzed and presented, it may not be useful for decision
making. Raw data may not be easily be comprehensible and it becomes
essential to classify and present them in a meaningful manner.
Statistical data can be presented in the form of tables and graphs. In

tabular form, classification of data is made with reference to time or some other
variables. Graphic analysis presents a visual picture of the given data.
Table no 1 showing the investors in which company they have invested.
Name of Co: No: of Respondents Percentage

UTI 10 20
CANARA 15 30
HDFC 5 10
ICICI 8 16
KOTAK MAHINDRA 3 6
TATA 5 10
OTHERS 4 8
Total 50 100
The below graph showing the percentage of the Investors invested in different
companies.
8% UTI
20%
10%
6%
16%
30%
10%
From the graph we can interpret that respondents have invested in various
companies. Canara leading in the list with 30% showing the popularity of the
company.
Table no 2 showing the investor in which scheme they have option to

invest.
Scheme No: of Respondents Percentage (%)

Equity 35 70
Debt 5 10
Liquid 10 20
Balance Fund 0 0
Total 50 100
The graph shows the percentage of respondents that have invested in different
scheme
35
35
30
25
20
15
10
10
5
5
0
0
Equity Debt Liquid Balance Fund
From the graph we can interpret that majority of the respondents have invested
in equity schemes. Very few respondents have invested in other schemes.
Table No 3 shows the purpose of investment
Purpose of Investment No of Respondent Percentage (%)

Tax Benefit 5 10
Security 30 60
Returns 15 30
Total 50 100
Graph shows the percentage of the purpose of investment.
RETURNS 30
SECURITY 60
TAXBENEFIT 10
0 20 40 60 80
From the graph we can interpret that majority of the respondents have invested
in mutual fund because of safety. Other investors have invested due to returns.
Table no 4 showing the number of investors satisfied with the service of

Canara Mutual Fund Company.
No of Respondents Percentage (%)

Satisfied 40 80
Not Satisfied 10 20
Total 50 100
Graph Shows Percentage of the investors satisfied with the service of their
Company’s
20%
SATISFIED
NOT SATISFIED
80%
From the graph we can interpret that majority of the respondents have satisfied
with the service of Mutual Fund Company. Canara Mutual Fund has been
successful in this area.
Table no 5 shows how the investors will visualize Mutual Fund from
investment angel.
Investment No: of respondents Percentage (%)
Long Term Investment 10 20
Risk Coverage 30 60
Reasonable rate of return 10 20
Total 50 100
Graph shows the percentage of the investors that they visualize Mutual
Fund from different angel.
70% 60%
60%
50%
40%
30% 20% 20%

20%
10%
0%
Long Term Risk Coverage Reasonable rate of
Investment return
From the graph we can interpret that majority of the respondents have
visualized mutual fund from risk coverage point of view. Other investors have
visualized mutual fund from long term Investment point of view.
Table no 6 showing the investors their expected rate of return from

investment in Mutual Fund.
Rate of Return No: of Respondent Percentage (%)

7 – 10 % 5 20
10 – 15 % 35 50
15% and above 10 30
Total 50 100
50
40
7% - 10%
30
10% - 15%
20
> 15%
10
0
Rate of Return
We can interpret that half of the respondents have got 10-15% return, while
30% investors have got returns 15% and above.
Table no 7 showing investment timeframe in mutual fund
Period Respondents Percentage (%)

Less than I year 25 50
1 to 3 years 12 24
3 to 5 years 7 14
More than 5 years 6 12
Total 50 100
More than 5 years 6
3 to 5 years 7
1 to 3 years 12
Less than I year 25
0 5 10 15 20 25
We can interpret that half of the respondents have invested in mutual fund for
shorter time duration. Other investors have invested in mutual fund for time
duration of 1 to 3 years.
Chapter 6

Findings
 Significant number of investors has invested in Canara bank mutual fund.
This shows popularity of the company.
 Majority of the respondents have invested in equity schemes. Very few
respondents have invested in other schemes.
 Majority of the respondents have invested in mutual fund because of safety.
Other investors have invested due to returns.
 Investors are satisfied with services provided by the company.
 The motive behind investing in mutual fund is risk coverage
 Majority of the Investors have got returns ranging between 10
 Majority of the investors have invested for shorter time duration.
SUGGESTIONS
 Company should try to give more value added services to its investors.
 Only equity schemes have been popular. So company should popularize
other schemes.
 As investors are more concerned about safety, more transparency should be
there as far as investment of fund in other companies by the company.
 Company should make sure that the investment of investors is risk free.
CONCLUSION
Positive investor perception is the ultimate for any mutual fund. Canara
bank is leading in this area. As more and more private mutual funds are
entering in to the industry. So company need to concentrate on its core
activities to improve the customer’s perception. Unless and until the company
provides an innovative scheme to it’s the customers, positive perception won’t
develop.
Mutual Fund is not new to India; it is there from the past 4 decades.
Only from past one decade after the entry of private Mutual Fund and Foreign
(sponsored) Mutual Funds, the competition and innovation took place in the
Indian Mutual Fund Industry in a rather short period, has grown from infancy
to adolescence.
ANNEXURE
 Questionnaire
 Bibliography
QUESTIONNAIRE
Dear Sir/Madam,
I am a student’s of Final Year BBM Studying in ATNC College,

Shivamogga, have undertaken a project title “A study of Mutual Funds in
Canara bank”. I request you to kindly spare your valuable time to fill up the
questionnaire. The information given by you will be used only for academic
purpose and kept highly confidential.
Thanking you.
Yours Faithfully
Yogesh .j
1.Name :
2.Age :
3.Sex :
Male [ ] Female [ ]
4.Profession :
Government sector [ ] Private sector [ ]
Engineers [ ] Professionals [ ]
Others [ ]
If others, specify
5.Spouse :
Employed [ ] Unemployed [ ]
6.Income level :
5000-15000PM [ ] 16000-30000PM [ ]
16000-30000PM [ ] 30000 and above [ ]
7.Have you invested in mutual fund schemes?

Yes [ ] No [ ]
8. If yes, in which company

UTI [ ] Canara [ ]
HDFC [ ] ICICI [ ]
KOTAK MAHINDRA [ ] TATA [ ]
OTHERS [ ]
9.In the above schemes you opted for

Open ended scheme [ ] close ended [ ]
10.Select the scheme you would invested in mutual fund

Equity scheme [ ] Debt scheme [ ]
Liquid scheme [ ] Balance ended scheme [ ]
11.How do you visualize mutual fund from investment angle

As long term investment [ ]
As risk coverage [ ]
As reasonable rate of return [ ]
12.What is the purpose of investment?

Tax benefits [ ] Security [ ] Returns [ ]
13.Are you interested in government or Private Mutual Fund Company?

Government [ ] Private [ ]
14.Are you satisfied with the service of Canara Mutual Fund Company?
Satisfied [ ] Not satisfied [ ]
15.What is your investment time frame i.e. for how long you set aside your
funds?
Less than 1 year [ ]
1 year to 3 years [ ]
3 years to 5 years [ ]
More than 5 years [ ]
16.What is the expected return on your investment?

7% - 10% [ ]
10% - 15% [ ]
15% and above [ ]
17.What is the amount of Money you plan to invest in Mutual Funds?

Rs. 5- 10 Thousand [ ]
Rs.10–50 Thousand [ ]
Rs. 50- 1 lakhs [ ]
Rs. 1 lakhs & above [ ]
18.Do you find that rate of interest you are paying for portfolio Management
is?
Competitive [ ]
Reasonable [ ]
High [ ]
Low [ ]
19.What type of investment you are paying /want to pay?

Monthly [ ]
Quarterly [ ]
Half yearly [ ]
Annually [ ]
20.Are you satisfied with the different services provided by the Mutual Fund’s
schemes?
Yes [ ]
No [ ]
21.If yes what is your opinion about the competitive services of other Mutual
Fund’s schemes?
Excellent [ ]
Good [ ]
Satisfactory [ ]
Poor [ ]
22.How do you rate the services provided by Canara Mutual Fund’s?

Excellent [ ]
Good [ ]
Satisfactory [ ]
Poor [ ]
Date: Signature:
Place:
BIBLIOGRAPHY
Books referred:
Financial markets and services:
 By E GORDEN
 BY DR. K. NATARAJAN
Mutual Fund in India:
 By H. Sadhak
Financial services and Investment:
 By B V Ragunandan
Journals Investor India:
 Business World,
 business India, Investor
Websites:
 www. Way2wealth.com
 www.amfi.com
 www.Mutual fund India .com
 www.canaramf.org
 www.mutualfundsindia.com
www.google.com

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Mutual Fund In Canara Bank

A STUDY OF MUTUAL FUNDS IN CANARA

1.1 Introduction to the study

1.1 INTRODUCTION TO THE STUDY

1.2.1 Sub objectives

1.3 STATEMENT OF THE PROBLEM

1.4 NEED FOR THE STUDY

1.5 SCOPE OF THE STUDY

1.6.1 Research design

1.7 SAMPLING DESIGN

1.7.2 Sampling Unit

1.8 QUESTIONNAIRE DESIGN

1.9 DATA ANALYSIS

2.1 Indian Banking Sector: Brief Introduction

2.1 INDIAN BANKING SECTOR: BRIEF INTRODUCTION

government in 1948 envisaged a mixed economy. This resulted into greater

The major steps to regulate banking included:

Indian banking industry, today is in the midst of an IT revolution. A

2.6 RECENT DEVELOPMENTS OF BANKING SECTOR IN INDIA

Ratings agency' Moody’s believe that strong deposit base of Indian

2.6.2 Indian Banking Sector: Recent Developments

receiving project proposals that were meant for a particular

2.6.3 Government Initiatives

infusion, entail three performance indicators savings and current deposit

2.6.4 Road Ahead

 Origin of Canara Bank

ORIGIN OF CANARA BANK

Sound founding principles, enlightened leadership, unique work culture

SIGNIFICANT MILESTONE OF BANK

1910 Canara Hindu Permanent Fund renamed as Canara Bank Limited

1969 14 major in the country inc1uding Canara Bank; nationaliaed on July

2007-08 Latuiching of New Brand Identity. Incorporation of Insurance and

Chairman and Director Workmen Part time

Executive Director Officer Representi

CANARA BANK BRANCHES AND OFFICES

BRANCHES ABROAD: CANARA BANK established its International

PRODUCTS AND SERVICES PROFILE

Priority and SME banking

3. Lead bank activities.

ii. SME Business

COMPETITORS AND MARKET SHARE

25 Goldman Sachs Mutual Fund 41.49 0.51%

A mutual fund is a type of professionally managed investment fund that

A mutual fund is an ideal investment vehicle for today’s complex and

A mutual is the answer to all these situations .It appoints professionally

ADVANTAGES OF MUTUAL FUND:

In case of Individuals and Hindu Undivided Families a deduction up to Rs.

DISADVANTAGES OF MUTUAL FUND:

Evolution of Mutual Fund Industry:

Mutual Fund Industry

First Phase – 1964-87

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

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

Fourth Phase – Existing period.

Structure of Fund Industry:

Sponsor: Sponsor is the person who acting alone or in combination with

Trustee: Trustee is usually a company (corporate body) or a Board of Trustees

Asset Management Company (AMC):

Registrar and Transfer Agent:

High net-worth individuals (HNI):

Association of Mutual Fund of India: (AMFI)

asset management including agencies connected or involved in the field of

MUTUAL FUND INDUSTRY.