PROJECT REPORT ON APPLICATION OF MUTUAL FUND IN THE INSTITUTIONAL SALES AT KOLKATA MARKET COMPANY NAME

DBS CHOLAMANDALAM AMC

Pertaining to the submission of Final Project for the requirement of the Degree in Master of Business Administration under The University of Calcutta.

DONE BY:
Mr. ANIRBAN CHAKRABORTY MBA Reg No :Roll No :009834 of 2001 2002 107 / MBA / 095054

INDIAN INSTITUTE OF SOCIAL WELFARE AND BUSINESS MANAGEMENT KOLKATA 700 073

DECLARATION

I, Mr. Anirban Chakraborty, hereby declare that this project report entitled as A STUDY on, Application of Mutual Fund in the Institutional Sales from 2nd June 2009 to 31st July 2009, at DBS Cholamandalam AMC, Kolkata in the requirements for the Organizational Project of MBA in IISWBM under University of Calcutta. This project report has not been submitted earlier for the award of any other Degree, Diploma in any other university.

ANIRBAN CHAKRABORTY
Reg No :Roll No :009834 of 2001 2002 107 / MBA / 095054

DATE :

TABLE OF CONTENTS:
TOPIC 1. PREFACE 2. AKNOWLEDGEMENT 3. EXECUTIVE SUMMARY 4. INTRODUCTION OBJECTIVE OF THE STUDY 9 PAGE NO. 5 6 7 8-9

5. COMPANY PROFILE CHOLAMANDALAM DBS PROFILE AREA OF BUSINESS o CHOLAMANDALAM DBS FINANCIAL SERVICES GROUP DBS CHOLAMANDALAM AMC LTD DBS CHOLAMANDALAM DISTRIBUTION LTD DBS CHOLAMANDALAM SECURITIES LTD 10

10-20

11 11 12 12 12 13 14 15 16 18 18

o CHOLAMANDALAM FINANCIALS o ABOUT DBS BANK o DBS CHOLAMANDALAM ASSET MANAGEMENT o ABOUT MURUGAPPA GROUP GROUP COMPANIES GROUP STRENGTH GROUP TURNOVER

o CHOLA BRANCH NETWORK IN INDIA 6. LITERATURE SURVEY 7. CONCEPTUAL FRAMEWORK o CONCEPT AND ROLE OF MUTUAL FUND o MUTUAL FUND PRODUCTS o FUND STRUCTURE AND CONSTITUENTS o OFFER DOCUMENT AND KEY INFORMATION MEMORADUM o DIFFERENT MUTUAL FUNDS OF DBS CHOLA AMC 8. RESEARCH METHODOLOGY o RESEARCH DESIGN o SAMPLING UNIT o SAMPLE SIZE o FIELD WORK o DATA COLLECTION METHOD 9. ANALYSIS OF DATA 10. CONCLUSION 11. RECOMMENDATION 12. LIMITATIONS 12. BIBLIOGRAPHY 13. ANNEXURE

19 21 22-35 22 26 29 31 32 36-39 36 36 37 37 38 40-44 45 46 47 48 49-50

PREFACE

In order that the fresh MBAs do not develop into ivory towards professionals some amount of practical exposure and experience is included in the MBA course curriculum. It is done with a view to give some practical oriented along with the theoretical orientation. I was assigned to do my major project in the DBS Cholamandalam AMC [Kolkata]. I worked with the organization to study through, Application of Mutual Fund in the Institutional Sales I tried to analyze the market position of DBS Cholamandalam AMC and to bring investment from the market. I shall be satisfied if this study and finding prove beneficial to the organization in any way.

AKNOWLEDGEMENT
I wish to express my appreciation to all those whom I worked/interacted and whose thoughts and insights helped me in increasing my knowledge and understanding my project. I would like to thank DBS Cholamandalam AMC [Kolkata] for approving me to do this Project in this Organization. I would take this opportunity to thank Mr. Satyaki Bhattacharya, Manager-Institutional sales of DBS Cholamandalam, for enlightening me with the product knowledge on the very first day off my training, which has helped me immensely during my field work. My sincere thanks to Mr. Prabal Banerjee, Asst. vice President & Regional Manager, Eastern Region for teaching me some important aspects of life and helping me whenever I approached him. I convey my thanks to IISWBM for giving a warm opportunity to do my Project in this esteemed organization named DBS Cholamandalam AMC.

Thank You All

ANIRBAN CHAKRABORTY Reg No :Roll No :009834 of 2001 2002 107 / MBA / 095054

INDIAN INSTITUTE OF SOCIAL WELFARE AND BUSINESS MANAGEMENT KOLKATA 700 073

EXECUTIVE SUMMARY

The project has been successfully completed in two months project starting from 2nd June 2009 to 31st July 2009 from DBS Cholamandalam Asset Management. Under the guidance of Mr. Satyaki Bhattacharyya, was my guider form DBS Cholamandalam Asset Management. The title of the project is Application of Mutual Fund in the Institutional Sales. The survey was done in the Kolkata region covering Small and Medium Enterprises in areas such as N.S Road, R.N Mukherjee Road, A.J.C Bose Road, B.B.D Bag, Park Street, Camac Street, Sarat Bose Road, Russell Street, Lake Town, Gariahat, and Chowringhee etc. This survey was done to find out whether the enterprises where ready to invest in Debt market or not. The study was done to find out the debt market situation exists and also whether the companies have investable surplus to invest in Debt market. For that we have used our research methodology in two ways first of all Primary data as Informal interview, Phone calls and Fixing appointments and next was Secondary data like Company database and from internet connection. Our secondary object was to acquire new clients for DBS Cholamandalam Asset Management. From this entirely two months project we have gathered the knowledge of debt market in the real field. We have got the idea about the corporate culture and realize the behavior of different people in difference areas.

INTRODUCTION
The project title Application of Mutual Fund in the Institutional Sales is related with Corporate Investment. The title shows an indication that to bring investments from the companies in Mutual Fund. To bring Investment several Mutual Fund policies of my company had to be explained to other companies so that they invest their excess funds. The Project also gives a clear idea about the Mutual Fund and the Investment Market exists. The title was given to me from the company because my work was related to Corporate Investment in Mutual Fund. We have visited several companies from the database given to us and had approached them to invest their excess funds in our company. Our preachment and convincing should fulfill the requirement of the companies. We used to explain the corporate solutions that can be achieved through investing at Mutual Fund of our company. We had generally visited the Small and Medium Enterprises at the Kolkata market to conduct this survey. This survey was done to find out whether the enterprises where ready to invest in debt market or not. The study was done to find out the debt market situation exists and also whether the companies have investable surplus to invest in Debt market. For that we have used my research methodology in two ways first of all Primary data as Informal interview, Phone calls and Fixing appointments and next was Secondary data like Company database and from internet connection. My secondary object was to acquire new clients for DBS Cholamandalam Asset Management.

OBJECTIVE OF THE STUDY

This study was done to survey the market situation of the Corporate Investment exists. Enterprises which have Investable surplus generally invest their funds somewhere to earn more Revenue. These types of funds are generally invested in several sectors such as Mutual Fund, Real Estate, Banks, and Shares etc.

To get a complete knowledge about the Corporate Investments in mutual fund.

To survey the potential market of DBS Cholamandalam AMC. The study was done to find the investable pattern of the Small and
Medium Enterprises.

The study was done to find out whether the companies have Investable
Surplus to Invest.

The study was done to find out the market share of the investment
companies.

The study was done to acquire new clients for DBS Cholamandalam
Asset Management.

Summary
This chapter deals with the objective of the study and what have I learnt from the study. It also deals with little discussion of the project title that I have given.

COMPANY PROFILE

Cholamandalam DBS

Profile Cholamandalam DBS Finance Limited is a pan-Indian company with a joint venture between Murugappa Group and DBS Bank of Singapore, offering a complete range of financial services. It is one of India's largest domestically owned NBFCs with a gross asset base (including securitised assets) of over Rs 4490 crore. Its bouquet of services comprises personal loans, vehicle finance, corporate finance, capital market finance and home equity loans. CDFL is a leading player in automobile finance covering a wide range of vehicles such as heavy and light trucks, cargo three-wheelers and multi-utility vehicles. The company has presence in over 160 locations across India. The company has evolved with time and built a portfolio of high quality. The company has maintained an unbroken track record of dividend payment for over 26 years. Following its partnership with DBS Bank, CDFL has introduced consumer finance into the Indian market.

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Areas of business Since its incorporation in 1978 as Cholamandalam Investment & Finance Company Limited (CIFCL), a NBFC, the company has successfully branched into valuable services in the competitive scenario such as commercial vehicle finance focusing on high yield segments with diversified customer base and exploring new segments like three-wheelers and used vehicles; corporate finance sector servicing business needs of corporates, currently intending to extend its services to small and medium enterprises (SMEs) in key markets; personal loans & home equity loans business currently poised to expand nationally through a delivery support channel across the country To sustain and enhance the high quality CDFL service experience of customers, the company is also working hard on its infrastructure and service capabilities technology initiatives that will provide seamless transaction delivery across India and establishing call centers to provide more efficient customer service delivery besides supporting and boosting cross-sell and collection mechanism are in the pipeline.

CHOLAMANDALAM DBS FINANCIAL SERVICES GROUP

CHOLAMANDALAM DBS FINANCIAL SERVICES GROUP Cholamandalam DBS is a pan-Indian, composite financial services provider. It comprises the parent company, Cholamandalam DBS Finance Limited (CDFL), and its subsidiaries and associates DBS Cholamandalam Distribution Limited, DBS Cholamandalam Asset Management Company Limited and DBS Cholamandalam Securities Limited. The shares of CDFL are listed in the Mumbai (BSE) and National (NSE) Stock Exchanges.

DBS Cholamandalam AMC Ltd (DCAMC) Cholamandalam AMC Limited (DCAMC) is the asset management company and the investment manager of Chola Mutual Fund, which offers mutual funds to retail and institutional investors. Established in 1996, DCAMC manages funds in excess of Rs 15 11

billion across 14 schemes with over 100,000 customers. Known for its prudent philosophy in fund management, DCAMC offers the entire range of cash, debt and equity products. DCAMC is present in over 14 locations and also has a strong distribution network in place.

DBS Cholamandalam Distribution Limited (DCDL)

DBS Cholamandalam Distribution Limited (CDSL) is in the business of distribution of a wide array of financial services products - both in-house and third party - to high-net worth and retail clients. Products offered include mutual funds, fixed income, share trading, savings instruments, capital bonds, IT/PAN processing services, equity IPOs and life and general insurance. The company combines reach in over 22 cities with richness of its investment advisory services. Established in 2000, the company already mobilizes over Rs.2500 crores of investments in a year.

DBS Cholamandalam Securities Limited (DCSec)

DBS Cholamandalam Securities Limited (DCSec) is a securities brokerage firm offering stock broking and equity research services to institutional investors, including many of the largest mutual funds in India, and to select individual clients. DCSec is a member of Bombay Stock Exchange and National Stock Exchange. It is also a depository participant with NSDL.

Cholamandalam Financials

Cholamandalam DBS Finance Limited (Chola DBS) has posted a growth of 15 per cent in the year 2005-06 in the disbursements of its core products - commercial vehicles, multiutility vehicles and cars. Total disbursements for all categories of vehicles stood at Rs. 1295 crore. The company's gross asset base (including assets de-recognised) grew by 18 per cent to Rs. 2309 crore. The Profit after Tax (PAT) grew to Rs. 35.20 crore, from Rs. 34.07 crore the previous year. 12

 About DBS Bank

Headquartered in Singapore, DBS is one of the largest financial services groups in Asia. The largest bank in Singapore and the fifth largest banking group in Hong Kong as measured by assets, DBS have leading positions in consumer banking, treasury and markets, asset management, securities brokerage, equity and debt fund raising. Beyond the anchor markets of Singapore and Hong Kong, DBS serves corporate, institutional and retail customers through its operations in Thailand, Malaysia, Indonesia, India and The Philippines. In China, the Bank has branches and representative offices in Shanghai, Beijing, Guangzhou, Shenzhen, Fuzhou, Tianjin, Dongguan and Hangzhou. The Bank's credit ratings are one of the highest among banks competing in the Asia-Pacific region, and the highest among banks in Singapore.

About DBS India

Our presence in India dates back to 1994 when DBS Bank opened a representative office in Mumbai, which was upgraded to a full branch in March 1995. A second branch licence was granted in 2005 for New Delhi. DBS services its clients from all the major cities in India through its advisory relationship team. As one of Asia's largest financial services groups, DBS has the resources, expertise and experience to provide a full range of corporate and investment banking services to large corporations, financial institutions as well as SMEs in India. Working closely with its headquarters in Singapore, the Bank offers wealth management, advisory services, trade finance, funding, transactional services and a whole range of treasury solutions. DBS India has extensive experience in providing innovative financial

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solutions to a number of blue-chip companies in India. A key player in the Asian capital markets, DBS is a well-recognised name in corporate banking, loan syndication and fundraisin.

DBS CHOLAMANDALAM ASSET MANAGEMENT(KOLKATA)-

DBS Cholamandalam Asset Management was established in 1996, it manages funds in excess of 2100crores (as on 31st March 2008) across 23 schemes over 200000 customer accounts. It is known for prudent & discipline investment philosophy, DCAM products cover the entire range of debt, equity & cash asset classes.DCAM is present over 20 locations in the country and also has a strong distribution network. DBS Cholamandalam is joint venture between Murugappa Group and DBS Bank of Singapore. The Company along with its subsidiaries and affiliates offers individual and institutional customers a range of Financial Services-vehicle finance, capital market finance, corporate finance, mutual funds, securities brokering and distribution of investment and insurance product. The Companies shares are listed on BSE and NSE.

PRODUCTSDBS Chola Mutual Fund offers the entire range of funds across asset classes in equity, debt and money market.Within each asset classes you will find Funds that adhere to distinct investment styles, so that you can build your portfolio that best suits your goals and objectives.

EQUITYOPEN ENDED SCHEMES

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1) DBS Chola Growth Fund.

2) DBS Chola Opportunity Fund. 3) DBS Chola Midcap Fund. 4) DBS Chola Multi- Cap Fund. 5) DBS Chola Global Advantage Fund. 6) DBS Chola Tax Saver Fund. 7) DBS Chola Hedged Equity Fund. 8) DBS Chola Contra Fund.

CLOSE ENDED SCHEMES

1) DBS Chola Infrastructure Fund. 2) DBS Small Cap Fund. (A 3 year close ended equity fund with automatic conversion into an open upon maturity) ended scheme

DEBT1) DBS Chola Triple Ace. 2) DBS Chola Freedom Income-Short Term Fund. 3) DBS Chola Liquid Fund. 4) DBS Chola Short Term Floating Fund. 5) DBS Chola GILT Investment Fund. 6) DBS Chola Interval income Fund quarterly Plan C.

About Murugappa Group

Headquartered in Chennai, the $1.6 billion Murugappa Group is Indias leading

business conglomerate, which fosters an environment of professionalism for its strong workforce of 28,000 employees. The group has 29 registered companies, which are market leaders in diverse areas on business viz. engineering, abrasives, finance, general insurance,

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sanitary ware, cycles, sugar, farm inputs, fertilizers, plantations, bio products and nutraceuticals. The Group has manufacturing units in 12 states. The Group has forged strong joint venture alliances with leading international companies like Roca of Spain, Cargill of Geneva, Cerdak of South Africa, DBS Bank of Singapore, Mitsui Sumitomo of Japan and Groupe Chimique Tunisien of Tunisia and has consolidated its status as one of the fastest growing diversified business house in India.

Murugappa Group Companies-

Carborundum Universal Ltd - Pioneering presence in Abrasives, Refractories, Electro minerals and Industrial Ceramics.

Cholamandalam Investment & Finance Co. Ltd - Leading holistic financial services provider in the country

Coromandel Fertilisers Ltd - Indias largest fully integrated fertilizer complex One of the leading players in the phosphatic fertilizer industry.

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Godavari Fertilisers & Chemicals Ltd- Second largest producer of DAP in India. Market leaders of DAP in Andhra Pradesh and other markets.

EID Parry (India) Ltd Parryware - Market leader in vitreous Sanitary ware. One of the largest Integrated Sugar complexes with co-generated Power. Largest producer of Neem based pesticides in the world.

Parry Agro Industries Ltd- One of High yielding plantations in the country

Parry Nutraceuticals Ltd- Leader in the production of nutritional Supplement Spirulina algae. World class facility in production of algae

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Tube Investments of India Ltd- Market leader in the manufacture of specialty Steel Tubes and Strips, Metal Forming. Biggest exporter of chains. Wide range of cycles.

Group Strengths Abrasives Phosphatic Fertilizers Sugar Steel Tubes, Strips Retail Finance Tea Chains Sanitary ware Cycles 43% Market share Coated 2 Million Sq.Mts. p.a Bonded 10,000 tons p.a. 2 Million tons p.a 350,000 tons p.a 250,000 tons p.a 350 Million US $ p.a 18 Million Kgs. 45 Million ESS ft p.a 38% market share in (Premium & Mid segment) 3 Million nos p.a

19 19 19 19 19 20 20 20 20 20 95- 96- 97- 98- 99- 00- 01- 02- 03- 0496 97 98 99 00 01 02 03 04 05

2400

2600

2730

3100

3700

3896

18

4196

4206

5266

6250

Group Turnover-

(Source: www.dbscholamandalam.com)

Chola Branch Network In INDIA.

Ludhiana

Chandigarh Delhi

Jaipur Ahmedabad Baroda Mumbai Pune Bangalore Indore

Lucknow Patna Jharkhand Kolkata

Hyderabad

Cochin

Chennai Coimbatore Madura i Branches DR

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(Soruce: www.dbscholamandalam.com)

Summary of The Company profile :-

DBS Cholamandalam is a Murugappa Groups South Indian based company. It was formed in the year 1900 by Mr.Ramanathan Chettiar. It has its presence in countries like Myanmar, Singapore, U.S.A, U.K, China, South Africa etc. It is one of the Largest Family promoted, professionally managed business group. DBS Chola believes in value for money to customers through quality products and services. It deals with products like Sanitary Ware, Phosphatic Fertilizers, Abrasives, Atomotive Chains, Steel Tubes, Car Door Frames, CRF Sections for Wagons, Neemazol Bio Pesticides, Textiles and Rubber Plantation, General insurance, Stock Broking, Tea Estate and Mutual Fund etc. Today Murugappa Group has 40 manufacturing facilities across 12 States in India with over 28,000 employees. Its Turnover in the year 2006-2007 is Rs.6,250 crores.

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LITER

As per the book Security Analys year to few years

Investors generally plans for a lo

According to the same book Inve limited risk.

V.K. Bhalla in his Investment Ma

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CONCEPTUAL FRAMEWORK
1. Concept and Role of Mutual Fund
What is a Mutual Fund? It is a pool of money, collected from investors, and is invested according to certain investment objectives. The contributors and beneficiaries are the same class of people namely the investors. A mutual funds business is to invest the funds thus collected, according to the wishes of the investors who created the pool. E.g. money market mutual fund seeks investors to invest predominantly in Money Market Instruments. What are the important characteristics of a Mutual Fund? The ownership is in the hands of the investors who have pooled in their funds. It is managed by a team of investment professionals and other service providers. The pool of funds is invested in a portfolio of marketable investments. The investors share is denominated by units whose value is called as Net Asset Value (NAV) which changes everyday. The investment portfolio is created according to the stated investment objectives of the fund. What are the advantages of Mutual Funds to Investors? Portfolio diversification. Professional Management. Reduction in Risk. Reduction in Transaction costs. Liquidity. Convenience and Flexibility.

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How do Mutual Funds help the financial planning objectives of investors? Mutual fund comprises of 39 funds, offering nearly 500 products. Competition in industry has led to innovative alterations to standard products. Investors can choose the manner in which their returns would be distributed. Investors can choose options that suit their return requirements and risk profile.

How does a Mutual Fund reduce the risk for the Investor? Mutual Funds invest in a portfolio of securities, thus achieving diversification.

How does a Mutual Fund enable an investor to hold a diversified portfolio?

By offering ready made diversified portfolio, mutual funds enable investors to hold a diversified portfolio.

What does Professional Management of the Mutual Fund mean, to the investor? are bound by investment management agreement.

Mutual Funds are managed by investment managers who are appointed by trustees and AMCs are required to be adequately capitalized and are closely regulated by SEBI. AMCs are prohibited to indulge in any other business. There are a number of safeguards and prudential regulations in the interest of the investors. Investment managers and funds are bound by the AMFI code of ethics.

How can Mutual Fund reduce transaction Costs?

Mutual Funds benefit the investor because of economies of scale, which helps in reducing transaction costs.

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What are the liquidity features of a mutual fund investment? Most of the funds are open ended. Investors can buy sell units at the prevailing NAV Funds can provide liquidity even if the underlying market may not have the liquidity. How do Mutual Funds enable regular Savings? Mutual funds are issued as account statements, with the facility to hold units in fraction up to 4 decimal units. It is simpler for investors to make additional investments; repurchase, reinvest, convert holdings and to alter investments.

What information does the Mutual Fund usually provide to the investor? Daily NAVs. Complete portfolio of the Fund. Credit quality of their portfolios. Behavior of NAV since inception.

Additional Information like, Maturity profile of their investments. Commentaries of the Fund Managers. What are the disadvantages of investing through Mutual Funds? No control over the costs. Regulators therefore limit the expenses of Mutual Funds. No tailor made portfolios. Managing a portfolio of funds.

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What are the important phases in history of mutual funds in India?

1 9 6 3 -1 9 8 7 U TI U TI U TI U TI

s o le p la y e r in t h e in d u s t ry , c re a t e d b y a n A c t o f P a rlia m e n t , 1 9 6 3 la u n c h e s firs t p ro d u c t U n it S c h e m e 1 9 6 4 c re a t e s p ro d u c t s s u c h a s M IP 's , c h ild re n s p la n s , o ffs h o re fu n d s e t c m a n a g e d a s s e t s o f 6 7 0 0 C r a t t h e e n d o f t h is p h a s e

1 9 8 7 -1 9 9 3 1 9 8 7 P u b lic S e c t o r B a n k s a n d F I's In S B I m u t u a l fu n d w a s t h e firs t n o n -U TI m u t u a l fu n d U TI's c o rp u s g re w t o R s . 3 8 , 2 4 7 C r a n d p u b lic S e c t o r F u n d s m a n a g e d R s 8 7 5 0 C r 1 9 9 3 -1 9 9 6 1 9 9 3 , M u t u a l F u n d In d u s t ry w a s o p e n t o p riva t e p la y e rs . In S E B I's firs t s e t o f re g u la t io n s fo r t h e in d u s t ry fo rm u la t e d in 1 9 9 3 S ig n ific a n t in n o va t io n s , m o s t ly in it ia t e d b y p riva t e p la y e rs 1 9 9 6 -1 9 9 9 p le m e n t a t io n o f n e w S E B I re g u la t io n s le d t o ra p id g ro w t h Im B a n k m u t u a l fu n d s w e re re c a s t a s p e r S E B I g u id e lin e s U TI c a m e u n d e r vo lu n t a ry S E B I s u p e rvis io n . 1 9 9 9 -2 0 0 0 p id g ro w t h , s ig n ific a n t in c re a s e in c o rp u s o f p riva t e p la y e rs Ra T a x b re a k o ffe re d c re a t e d a rb it ra g e o p p o rt u n it ie s B o n d fu n d s a n d liq u id fu n d s re g is t e re d h ig h e s t g ro w t h U TI's m a rk e t s h a re d ro p s t o n e a rly 5 0 %

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2. Mutual Fund Products

How does a Mutual Fund Offer a choice of products to the investor?

Depending on the investment portfolio that is created, and the segments of the various markets in which the funds are invested, there is a choice of funds to the investors. What are the generic choices of mutual fund investor? Nature of Participation: open or closed ended funds. Nature of Income Distribution: Dividend, growth, reinvestment. Periodicity of dividends can also be selected What are open-ended funds? In an open ended fund, investors can buy and sell units of the fund, at NAV related prices, at any time, directly from the fund. Open ended scheme are offered for sale at a pre- specified price, say Rs. 10, in the initial offer period. After a pre-specified period say 30 days, the fund is declared open for further sales and repurchases Investors receive account statements of their holdings

What are closed end funds? A closed -end fund is open for sale to investors for a specified period, after which further sales are closed. Any further transactions happen in the secondary market where closed-end funds are listed. The price at which the units are sold or redeemed depends on the market prices, which are fundamentally linked to the NAV. Investors receive either certificates or depository receipts, for their holdings 26

What is the dividend option? Investors, who choose the dividend option on their investments, will receive dividends from the mutual fund as and when such dividends are declared. Dividends are paid in the form of warrants, or are directly credited to the investors bank accounts. Normal dividend plan : Timing of payout is decided by the fund Pre-Specified Distribution schedules: Option of daily , weekly, monthly, quarterly, halfyearly or annually

What is the growth option? Investors with longer-term investment horizons and limited requirements for, income

choose this option. The return to this investor is the rate at which his initial investments have grown over the period for which he has invested in the fund. What is the re-investment option?

Investors re-invest the dividends that are declared by the mutual fund, back to into the fund itself, at NAV that is prevalent at the time of re-investment. What are the Mutual Fund types? Fund Types Based on nature of Investments- Equity, Bond and Money Market Funds. Fund Types by Investment Objective Growth Funds, Value Funds, Income Funds.

Fund types based on Risk Profile. What is aggressive growth fund?

They target maximum capital appreciation, invest in less researched or speculative stocks and may adopt speculative investment strategy to attain their objective of high returns for the investor.

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What are Growth Funds?

Investment in companies whose earnings are expected to rise at an above average rate. Primary objective is to have capital appreciation in 3-5 Year span. Less volatile than aggressive growth funds. What are Sectoral Funds?

Sectoral funds choose to invest in one or more chosen sectors of the equity market. They are not as well diversified as simple equity funds as they tend to focus on fewer sectors. They can exhibit volatile returns. What are offshore funds? These funds invest in equities in one or more foreign countries thereby achieving diversification across the countrys borders. What are Hybrid funds?

Mutual Funds mix these different types of securities in their portfolios. These funds seek to hold a relatively balanced holding of debt and equity securities in their portfolios. What are Balanced Funds?

Funds that invest both in debt and equity markets are called as balanced funds. Typical balanced fund would have equal investment in both markets. What are Asset Allocation Funds?

These funds follow variable asset allocation policies and move in and out of asset class depending on the outlook for specific markets. What are Debt funds?

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Those funds that invest predominantly in Debt Securities. They are also known as Income funds as they pay periodic interest to investors. What are liquid and money market funds?

These debt funds invest only in instruments with maturities less than a year. The investment portfolio is very liquid and enables investors to hold their investments for very short horizons of a day or more. What are Load and No-Load Funds?

Marketing of a new mutual fund scheme involves initial expenses. These expenses can be recovered from the investors at different times. At the time of investors entry into the fund/scheme buy deducting a certain portion of the initial contribution. By charging the fund with a fixed amount each year, during the stated number of years. At the time of investors exits from the fund. If the initial expenses are borne by the investment manager then the fund is said to be a no- load fund.

3. Fund Structure and Constituents

What is the regulatory structure of mutual funds in India? The structure of mutual funds in India is governed by SEBI (Mutual Fund) Regulations, 1996. It is mandatory to have a three tier structure of Sponsor-Trustee-Asset Management Company. The Sponsor is the promoter and he appoints the Trustees who are responsible to the investors of the fund. AMC is the business face of the mutual fund as it manages all the affairs of the fund. Who manages the Mutual Fund? The Sponsor, acting through the trustees, appoint all the functionaries to manage M.F

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Investment Managers, known as AMC. Registrars and Transfer Agents. Brokers. Selling agents and Distributors. Custodians. Depository participants. Bankers. Legal advisors. Auditors.

What are the rights of the Trustees?

Trustees appoint the AMC, in consultation with the sponsor and according to SEBI Regulations. All Mutual Fund Schemes floated by the AMC have to be approved by the Trustees. Trustees can seek information from the AMC regarding the Operations and compliance of the mutual fund. Trustees can seek remedial actions from AMC, and in cases dismiss the AMC. Trustees review and ensure that net worth of the AMC is according to stipulated norms, every quarter. What are the regulatory requirements for the AMC?

AMC must have a minimum net worth of Rs. 10 Cr., at all times Only SEBI registered AMC can be appointed as investment managers of mutual funds. An AMC cannot be an AMC or Trustee, of another Mutual Fund AMCs cannot indulge in any other business, other than that of asset management At least half of the members of the Board of an AMC have to be independent. The 4th Schedule of SEBI regulations spells out rights and obligations of both trustees and AMCs

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How are Indian mutual funds organised?

Though the trust is the mutual fund, the AMC is its operational face. The AMC is the first functionary to be appointed and is involved in the appointment of all other functionaries. The AMC structures the mutual fund products, markets them and mobilises the funds, manages the funds and services the investors. All the functionaries are required to report to the trustees who lay down the ground rules and monitor their working.

4. Offer Document and Key Information Memorandum

Where can the investor find out the details about a mutual fund scheme, before investing his money? The mutual fund is required to file with SEBI a detailed information memorandum called the prospectus, in a prescribed format giving all the information of the fund and the scheme. An abridged version of the offer document, in a prescribed format is appended to the application form. Investors can get a summary of the offer document in the abridged version known as the Key Information Memorandum What does the Offer Document usually contain? It contains information regarding, Objective of the scheme Asset allocation

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Sale and repurchase procedure Load and expense structure of the scheme Accounting and valuation policies

It also contains Its constituents Operational details as how to apply Rights and duties of the investors

Why is the offer document important to investors?

Information about the product, and its fundamental attributes, are specified in the offer document. It forms the basis of investors decisions. Offer Document is a legal document that specifies the details of the offer made by the mutual fund. What are the Mandatory summary disclosures to be made on the cover page of the offer document? 1. Name of the mutual funds. 2. Name of the scheme. 3. Type of scheme. 4. Name of the AMC. 5. Classes of units offered for sale. 6. Price of units. 7. Name of the guarantor in case of assured return schemes. 8. Opening, closing and earliest closing date of offer. 9. Mandatory statements.

5. Different Mutual Funds of DBS Chola AMC

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DBS Cholamandalam AMC has special 3 types of Funds

a) DBS Chola Liquid Fund b) DBC Chola Short Term Floating Rate Fund c) DBS Chola Freedom Income-Short Term Fund

a) DBS Chola Liquid FundInvestment objective- The investment objective will be to generate reasonable returns while maintaining safety and providing the investor superior liquidity. To achieve these objective investments will be predominantly made in a well-diversified and highly liquid portfolio of money market instruments, government securities and corporate debt.

ASSET P

(sourcewww.dbscholamandalam.com) Fund Managers Comment- DBS Chola Liquid Fund is a very short-term fund with investments in fixed income assets of residual maturity of one year or less. The strategy for managing the funds is to invest in the highest rated instruments which are liquid in the

NCD, 53.06% b) DBC Chola Short Term Floating Rate Fund

secondary market.

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Investment objective- The investment objective of the scheme is to generate regular income to investment in a portfolio comprising substantially of floating rate debt/money market instrument, fixed rate debt/money market instruments swapped for floating rate return and fixed rate debt securities, govt. securities & money market instruments.

Asset Profile

CP, 8.70% PTC, 26.78%

NCD, 59.26% T-BILL, 0.01% CASH, 7.49% CD, 12.73%

(Source www.dbscholamandalam.com) Fund Managers Comment- DBS Chola Short Term Floating Rate Fund is a quasi liquid fund with more than 50% of the assets in floating rate assets. Investments are in highest rated instruments.

c) DBS Chola Freedom Income-Short Term FundInvestment objective- An income scheme with at least 80% investments in fixed income securities with the objective of generating regular and stable income for the unit holders of the scheme. The balance will be invested in money market instruments of high quality. The scheme will not invest in equities or equity related instruments.

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Asset Profile

CP, 13.84% NCD, 47.30% PTC, 19.74%

T-BILL, 0.04% CASH, 5.14% CD, 24.22%

(Source www.dbscholamandalam.com) Fund Managers Comment- DBS Chola Freedom Income is a short-term fund. The scheme seeks to provide better returns than liquid fund. The duration of the fund is longer than the liquid fund.

Summary: Mutual Fund is a pool of money collected from investors. Here the several benefits of Mutual Fund have been discussed. Also the Mutual Fund products of DBS Chola AMC have been discussed.

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RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. The section includes the overall research design, the sampling procedure, the data collection method, the field work and analysis and procedure. Research design : For this research project exploratory and descriptive method is used. Data collection method : Data collect for the research can be classified as primary data and secondary data.

RESEARCH DESIGN :-

A framework for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure and/or solve marketing research problems. The project is mainly Descriptive cum Exploratory. Descriptive :It describes market characteristics or functions. It is preplanned and structured design. Descriptive research is marked by the prior formulation of specific hypotheses. The several methods are secondary data, surveys, panels and observational. Exploratory :To provide insights and understanding of the problem. It was often the front end of total research design. It is flexible and versatile. The several methods are expert surveys, pilot surveys, and qualitative research etc. Keeping in mind the above mentioned concept of various types of research and taking care of our study we have taken the descriptive cum exploratory research.

SAMPLING UNIT :-

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A Sampling Unit is an element, or a unit containing the element, that is available for selection at some stage of the sampling process. Before selection for survey a sampling unit was taken. The sampling unit was the Small and Medium Enterprises which we had visited. The informations about these Small and Medium Enterprises were given from the company database and we had selected randomly from there.

SAMPLE SIZE :-

It is the total size of the units that are used for the analysis of data. The sample size determined statistically represents the final or net sample size that must be achieved in order to ensure that the parameters are estimated with the desired degree of precision and the given level of confidence. In surveys, that represents the number of interviews that must be completed. In order to achieve this final sample size, a much greater number of potential respondents have to be contacted. The initial sample size has to be much larger because typically the incidence rates and completion rates are less than 100%. We were given a database of around 100 companies to cover in 40 days, but due to time constraints we could only visit 50 companies and collected necessary datas from them. The analysis is done on a sample size of 40 collected from the 50 companies we have visited. So my sample size is 40.

FIELD WORK :-

Marketing research data are rarely collected by the persons who design the research. Researchers have two major options for collecting their data. They can develop their own organization or they can contract with a field work agency. In either case, data collection involves the use of some kind of field force. The field force operates in Personal Interviews, observations, office telephones and internet surveys. The field workers who collect the data typically have little research background or training.

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The main work of the project was to bring out investment from the Small and Medium Enterprises by explaining them the corporate solutions DBS Cholamandalam was providing. It was an individual application (survey) carried on in the market. The company representatives were interviewed individually. Date and time was allotted to make appointment with them. We had visited the companies directly to make these appointments. The universe from where samples are taken comprises of Small and Medium Enterprises. The company dignitaries were interviewed to collect information. The survey was done in the Kolkata Region covering Small and Medium Enterprises in Areas such as : N. S ROAD R. N. MUKHERJEE ROAD A. J. C BOSE ROAD B.B.D BAG PARK STREET CAMAC STREET SARAT BOSE ROAD RUSSEL STREET CHOWRINGHEE GARIAHAT LAKE TOWN etc The problem that arises during the survey with the samples was that many of the companies cannot be visited and therefore the result is only on the visited samples.

DATA COLLECTION METHOD :-

The task of data collection begins after a research problem has been defined and research design/plan chalked out. While deciding about the method of data collection to be used for

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the study, the researcher should keep in mind two types of data i.e. Primary and Secondary data. Primary Data : The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. There are several types of primary data such as Questionnaire, individual survey, interview method, phone calls, panel group, focus group, electronic media, observations etc. From these several primary data we have used individual survey, interview method and phone calls as these were required for my collection of data. To study the market position individual survey is the appropriate method to collect the primary data. Information from the company representatives were collected only by meeting them and asking the question through the help of questionnaires. Secondary Data : Secondary data means data that are already available i.e., they refer to the data which have already been collected and analyzed by someone else. When the researcher utilises secondary data, then he has to look into various sources from where he can obtain them. There are several types of secondary data available such as RBI Bulletin, newspapers, leaflets, several books, company database, several websites etc. From this secondary data we have taken help of company database and some websites to get informations.

Summary :To make this survey several companies were visited and necessary datas were collected through the help of data instrument. Also the places were the companies are visited and the limitations faced were discussed.

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ANALYSIS OF DATA
The selection of the analysis of the data is based on the research objectives. The datas are collected with the help of Personal Interviews and by filling the Questionnaire. Data analysis is not an end in itself. Its purpose is to produce information that will help address the problem in hand.

Table 1.1: Companies Interested to Invest In Mutual Fund.

19, 48%

Interested 21, 52% Not Interested

Sample size-40

Interpretation : In the Pie-chart it shows that majority of the companies (52%) have
shown interest to invest in Mutual Fund when we interviewed them and explained them the corporate solution achievable through investment in Mutual fund.

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Table 1.2: Presently enterprises having investable surplus and enterprises running at overdraft.

7, 18%

33, 82%

Have Investable Surplus

Running at Overdraft

Sample size-40 Interpretation: In the Pie-chart it shows that 82% of the enterprises are having investable amount to invest, whereas remaining 18% of the enterprises are running at O/D in Bank, so they have no investable surplus.

Table 1.3: Companies Having Their Treasury Dept located at.

Sample size-40
Kolkata Outside Kolkata

30 25 20 15 10 5 0 Kolkata Outside Kolkata 27 13

Interpretation: In the Bar-graph it shows that most of the companies we have visited have their treasury dept in Kolkata and investment is done from Kolkata. 41

N.B-Companies

not having investable surpluses are not being considered for rest of the

analysis.

Table 1.4: Companies first preference to invest their funds in Area.

14 12 10 8 6 4 2 0 Mutual Fund 5 1 Banks Shares Real Estate Others 9 4 Mutual Fund 14 Banks Shares Real Estate Others

Sample size 33 Interpretation: In the Bar-graph it shows that majority of the companies love to invest in Mutual Fund before investing in any other place.

Table 1.5: Market share of the investable amount a small and medium enterprise can afford.
Sample size 33

13, 40% Below 100000 Below 500000 Below 1000000 7, 21% 2, 6% 11, 33% Above 1000000

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Interpretation: In the Pie-chart it shows that enterprises mostly try to afford investment below 500000 (40%) and avoid investing a huge amount.

Table 1.6: Market share of Enterprises preferred Investment Companies.

a)
Others Sundaram BNP DSP Merrilynch HDFC Mutual Fund DBS Chola Mutual Fund UTI Mutual Fund SBI Mutual Fund 0 4 5 10 15 3 10 1 7 2 6 Others Sundaram BNP DSP Merrilynch HDFC Mutual Fund DBS Chola Mutual Fund UTI Mutual Fund SBI Mutual Fund

Sample size 33 b)
4, 12% SBI Mutual Fund UTI Mutual Fund 2, 6% 1, 3% 10, 31% DBS Chola Mutual Fund HDFC Mutual Fund DSP Merrilynch Sundaram BNP 7, 21% 3, 9% Others

6, 18%

Sample size 33

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Interpretation : In the above Pie-chart and Bar-graph it can be seen that the 31% of the companies have invested in UTI Mutual Fund, whereas only 9% have shown faith in DBS Cholamandalam like Traco Enterprise, Usha Martin Industries etc. So UTI rules most of the market in investment sector.

Summary :From the above Bar-graphs and pie-charts we can find out several informations like how many companies prefer to invest in Mutual Fund, enterprises having investable surplus, enterprises running at O/D, Companies preference of investment etc. We can draw a clear picture of the market condition and situation exists for Corporate Investment.

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CONCLUSION

The fact that money makes more money is unquestionable. But the money should be parked in a proper option. According to the accuracy of the investor regarding the selection of the investment and it different aspects like tenure, option etc. the investor will be benefited. Those who will invest with a proper planning will be benefited more. There are some investors whose objectives have never fulfilled. Ultimately they thought that every investment alternative is vogues. But it is not true. These types of investors have failed due to their improper planning and wrong selection of alternatives at different point of time. It is said earlier that this project does not consider all the investment avenues. So, further project can be conducted considering those options also. Then the preferred investment avenue of the investors will be clearer. At the same time it is said that the Mutual Fund is a better investment option than others and the reasons are explained earlier. To conclude we must say that, we have learned a lot about the investment pattern & the market condition existing. We have gathered a good knowledge about when a company is ready to invest, when it has surplus funds with them and the companies are not running at the Bank Overdraft etc. We have got a good experience visiting several companies and speaking with the high dignitary, senior executives present in the company. It was a very bright and good learning process which would be helpful for me in my future.

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RECOMMENDATION
Every study should have some recommendations. Without this the study can not be fulfilled. So, like every study our studies also have some recommendation like. It is recommended that the company should keep a track on the Yield rates provided by other Mutual Fund Companies. Other mutual fund companys higher percentage of yield rates can affect the company. The company should also maintain a proper database because without a proper database it becomes difficult to find out the requirement of the new and existing customers. If the database is clearly made then it becomes much easier to trace several existing and non-existing customers. The company can have a thorough study about the opportunities and capitalize them for companys betterment as a whole.

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LIMITATIONS

Limitation to the research arose due to the paucity of time and the geographical nature of the area visited. In some places the companies are situated in those places which were difficult to identify. We were just able to visit 50 companies. On few occasion the companies were closed or the concerned persons were not present. The data collected was collected by personal visits to the companies and direct interaction with the company representatives and the authenticity of the data collected depends on the information provided by them. All the information given in this project is based on the survey which we conducted in the geographical area within the time period of two months.

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BIBLIOGRAPHY
1. Chandra P, Financial Management, Tata McGraw-Hill Publication, Seventh
Edition, 2008.

2. Bhalla V.K, Financial Management, Anmol Publications Pvt Ltd, Ninth

Edition, 2008.

3. Kothari C.R, Research Methodology, New Age International Publishers,

Revised Edition: 2008.

4. Malhotra N.k, Marketing Research, Pearson Prentice Hall Publishing Inc,

Fifth Edition, 2007. 5. www.google.com 6. www.msn.com

7. www.sebi.gov.in
8. www.cholamandalam.com 9. www.dbscholamandalam.com

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ANNEXURE
QUESTIONNAIRE:Dear Sir / Madam, I am a MBA student of IISWBM [CU] ,is conducting this survey, as a part of my project in MBA curriculum. I would be grateful if you could spare a few minutes to participate in it. 1. Nature of Business: 2. Do the company invest in Mutual Funds? 3. If YES then in which sector do they invest? ( ( ( ( ( ( ) Freedom Income Short Term Fund ) Short Term Floating Rate Fund ) Liquid Fund ) Monthly Income Plan ) Fixed Maturity Plan ) Others ( ) Yes ( ) No

4. If NO then where the company invest their Funds? . ( ( ( ( ) Equity ) Real Estate ) Government Sector ) Others ( ( ( ( ) Yes ) Yes ) Yes ) Yes ( ( ( ( ) No ) No ) No ) No

5. Whether the company has investable surplus? 6. Whether the company is running at O/D in bank? 7. Have they heard about DBS Chola AMC? 8. Is the company ready to invest there?

9. What facilities the company looks for before investing? ( ) Interest Rates ( ) Maturity Period ( ) Others ) Yes ( ) No

10. Have the company before invested in DBS Chola? ( 11. If YES what is the Feedback?

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) Good

) Average

) Not satisfactory ( ) Yes ( ) No

12. Are they planning for future investment? 13. If YES when should we contact?

14. Whether the company is investing in any other organization? If YES what is the Name? 15. Are they satisfied? 16. In which way they are investing? ( ) Debt ( ) Equity ( ) Others ( ) Yes ( ) No

17. Why? 18. What is the investable amount the company can afford? ( ( ) Below 1,00,000 ) Below 10,00,000 ( ( ) Below 5,00,000 ) 10,00,000 or Above

19. Where is Treasury Dept located? ( ) Kolkata ( ) W.B ( ) Outside W.B

Thank You very much for your cooperation. Name of the Organization: Phone Number Email Address Person Concerned Designation Date : : : : : :

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THANKYOU!!

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