Professional Documents
Culture Documents
EXECUTIVE SUMMARY
Karvy, the FINAPOLIS Ltd. is a stock Broking Company that deals in shares. Apart from security broking Karvy is in to Demat services, Mutual fund and Insurance services. It offers a wide range of financial services in order to meet different individuals financial planning. The project emphasizes on Customer satisfaction towards depository participants Objectives of the Study: Main Objective is to find the level of satisfaction of customers. To find the factors which are responsible for slow growth. To find out the preference people give to various options available. To know the kind of benefit people expected from their service. Origination Study. Mutual Fund study.
Secondary Data : Karvys Record & Report, Magazine & Websites. Sample size: 100 customers of Karvy Stock Broking Ltd. Area Covered for research: Only in Belgaum city. Sampling Procedure: Random sampling method from available database. In the present scenario the service industry has given an utmost importance of doing a particular task at a fastest time in order to satisfy the customer and to attract new customer. In this project we can find out the customer of Karvy Consultant have satisfied with Mutual Fund service.
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Introduction
India has two hundred years old tradition in Securities. Infact that first India stock exchange established in Bombay is the oldest in Asia. The earliest security dealings were Transactions in loan securities of East India Company, the dominant institution of those days. Corporate Shares came into the picture by 1830s and assumed significance with the Companies Act of 1956. In 1887 the broker community gave birth to the Native share and stock brokers Association which is now known as the Bombay Stock Exchange. BABASAB PATIL MARKETING PROJECT REPORT Page No 2
Sampling since segment wise investors in KARVY STOCK BROKING Ltd are not available the overall customers were considered for the study. Hundred Percent coverage was
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Sampling Size: A sample of 100 was chosen for the purpose of the study. Sample consisted of small investor, large investors and traders of KARVY STOCK BROKING Ltd.
Sampling Procedure: From large number of customer of KARVY STOCK BROKING Ltd. Were randomly selected from the available customer database.
2.SECOUNDARY DATA:
This is been is collected through KARVYS RECORD & REPORT, MAGAZINE & WEBSITES.
MEASUREMENT TECHNIQUE / STATISTICAL TOOLS: For this purpose measurement technique used for survey is questionnaire & telephonic interview to collect information from the respondent ANALYTICAL TECHNIQUE:
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KARVY STOCK BROKING LTD. Deals in buying & selling equity shares & debenture &on the national stock exchange (NSE), the Hyderabad stock exchange & over the counter exchange of India (OTCEI) Member-national stock exchange (NSE)
KARVY CONSULTANTS LTD Transfer agency services for corporate & mutual funds
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KARVY INVESTER SERVICES LTD. Deals in issue management, investor banking & merchant banking of fixed income & other financial products. Trading through BSE
DEPOSITARY SEVICES Registered as DP both with NSDL & CDSL Serving over 2 lac investors Online connectivity at Hyderabad, Lucknow &Bangalore Ranked among the top 5 DPS in the country High synergy with registry & broking activities for higher services levels to the customer information Web based customer information Provision of service in over 75 locations
IT SERVICES GROUP 1.Medical transcription First strategic initiative into global processing Among the top MT companies in India
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MISSION: Our mission is to be a leading, preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising and technology driven organization which will set the highest standards of service and business ethics.
QUALITY POLICY:
To achieve and retain leadership, Karvy shall aim for complete customers satisfaction, by combining its human and Technological resources, to provide superior quality financial Services. In the process, Karvy will strive to exceed Customers expectations. QUALITY OBJECTIVES: As per the Quality Policy, Karvy will: 1. Build in- house process that will ensure transparent and harmonious relationship with its clients and investors to provide high quality of services.
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Karvys Mutual Fund services: Building a heritage of confidence: Since its inception in 1982, Karvy has demonstrated a dedication coupled with dynamism that
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Jardine is a respected investment banker with a demonstrated track-record of delivering value to its clients spread over 43 countries. It is ranked amongst the world's TOP 3 Foreign Institutional Investors (FIIs). BABASAB PATIL MARKETING PROJECT REPORT Page No 14
ORGANISATION CHART
Vice-President
Vice-President
Vice-President
Vice-President
Senior Manager
Senior Manager
Senior Manager
Senior Manager
Branch Manager
INTRODUCTION Different investment avenues are available to investors. Mutual funds also offer good investment opportunities to the investors. Like all investments, they also carry a certain
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intermediary who provides the required knowledge on professional expertise on successful investing. CONCEPT OF MUTUAL FUNDS: A Mutual Fund is a trust that pools the savings of a number of investors who share a Common financial goal. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. These could range from shares to debentures to money market instruments. The income earned through these investments and the capital appreciation realized by the scheme are shared by its unit holders in proportion to the number of units owned by them (pro rata). 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 portfolio at a relatively low cost. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy. It is is a mechanism for pooling the resources by issuing units to the investors And investing funds in securities in accordance with the objectives as disclosed in offer
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ORGANISATION OF A MUTUAL FUND There are many entities involved and the diagram below illustrates the Organizational set up of a mutual fund:
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HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank the. The history of mutual funds in India can be broadly divided into four distinct phases 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 crores of assets under management. Second Phase 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 BABASAB PATIL MARKETING PROJECT REPORT Page No 19
Fourth Phase since February 2003 In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003, representing BABASAB PATIL MARKETING PROJECT REPORT Page No 20
funds to protect the interest of the investors. SEBI notified regulations for the mutual funds in 1993. Thereafter, mutual funds sponsored by private sector entities were allowed to enter the capital market. The regulations were fully revised in 1996 and have been amended thereafter from time to time. SEBI has also issued guidelines to the mutual BABASAB PATIL MARKETING PROJECT REPORT Page No 21
Management company (AMC) and custodian. The trust is established by a sponsor or More than one sponsor who is like promoter of a company. The trustees of the mutual Funds hold its property for the benefit of the unit holders. Asset Management Company (AMC) approved by SEBI manages the funds by making investments in various types of BABASAB PATIL MARKETING PROJECT REPORT Page No 22
ADVANTAGES OF MUTUAL FUNDS: The following are the major advantages offered by mutual funds to all the investors. 1. Portfolio diversification: Mutual funds normally invest in a well diversified portfolio or securities. Each investor in a fund is a part of owner of all of the funds assets. BABASAB PATIL MARKETING PROJECT REPORT Page No 23
The funds pay lesser costs because of larger volumes, a benefit passed on to its Investors. 5. Liquidity: Investment in a mutual fund is more liquid .an investor can liquidate The investment, by selling the units to the fund if open-end, or selling them in BABASAB PATIL MARKETING PROJECT REPORT Page No 24
you will pay taxes on the income you receive, even if you reinvest the money you made. 4)Management risk: When you invest in a mutual fund, you depend on the fund's manager to make the right decisions regarding the fund's portfolio. If the manager does not perform as well as you had hoped, you might not make as much money on your investment as you expected. Of course, if you invest in Index Funds, you forego management risk, because BABASAB PATIL MARKETING PROJECT REPORT Page No 25
Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units Outstanding on the Valuation Date BABASAB PATIL MARKETING PROJECT REPORT Page No 26
Is the price you pay when you invest in a scheme. Also called Offer Price. It may include a sales load 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 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. Repurchase or Back-end Load Is a charge collected by a scheme when it buys back the units from the unit holders. Sector specific funds/schemes : These are the funds/schemes, which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time. They may also seek advice of an expert. Tax Saving Schemes: These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act, 1961 as the Government offers tax incentives for investment in specified avenues. e.g. BABASAB PATIL MARKETING PROJECT REPORT Page No 27
DIFFERENT TYPES OF MUTUAL FUNDS SCHEMES: Open-ended Fund /Scheme: An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. investors can Conveniently buy and sell units at Net Asset Value (NAV) related prices which are BABASAB PATIL MARKETING PROJECT REPORT Page No 28
Load and No-load funds. Marketing of a new mutual fund schemes involves initial expenses . these expenses may be recovered from the investors in different times. Three usual ways in which a Funds sales expenses may be recovered from the investor from the investors are:
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the investor at the time of his entry into a scheme is called a front end or entry load. The load charged to the scheme over a period of time is called a deferred load . the load that the investor pays at the time of his exit is called a back-end or exit load.
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While Indian mutual funds currently offer tax-free income, any capital gains arising out of sale of fund units are taxable .All these tax consideration are important in the decision on where to invest as the tax- exemptions or concessions alter the returns obtained from these investments. MUTUAL FUND TYPES: a) Broad Fund Types by Nature of investments: Mutual funds may invest in equities, bonds or other fixed income securities, or short- term money market securities .So we have Euity,Bond and Money Market Funds. All of them investment in financial assets .But there invest in physical assets. For ex. We may have Gold or other precious Metals funds or Real Estate Funds.
b) Broad Fund Types by investment Objective: Investors and hence the mutual funds pursue different objective while investing. Thus Growth Funds invest for medium to long term capital apperception. Value funds invest in equities that are considered under valued today , whose BABASAB PATIL MARKETING PROJECT REPORT Page No 31
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recognize that debt securities are subject to risk of default by the issuer on payment of interest or principal .A diversified debt fund has the benefit of risk reduction through diversification and sharing of any default losses by a larger number of investors. Hence a diversified debt fund isles risky than a narrow focus fund that invest in debt securities of a particular sector or industry.
b) Focused Debt Funds: Some debt funds have a narrow focus ,with less diversification in its
Investments.Ex include sector ,specialized and offshore debt funds. These are similar to the funds described later in the equity category except that debt funds BABASAB PATIL MARKETING PROJECT REPORT Page No 33
e) Fixed Term Plan Series-Another Indian Variant: A mutual fund scheme would normally be either open-end or close-end .However ,In India, mutual funds have evolved an innovative middle
option the two, in response to investor needs. If a scheme is open-end ,the fund BABASAB PATIL MARKETING PROJECT REPORT Page No 34
rise at an above average rate. These companies may be operating in sectors like technology considered to have a growth potential ,but not entirely unproven and speculative .the primary objective of growth fund is capital appreciation over a
three to five year span . growth funds are therefore less volatile than funds that BABASAB PATIL MARKETING PROJECT REPORT Page No 35
C) III. Small-Cap Equity Funds These funds invest in shares of companies with relatively lower market capitalization than that of big ,blue chip companies. They may thus be more volatile than other funds ,as smaller companies shares are not very liquid in the markets.
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represents the overall market. The fund invests in shares that constitute the index and in the same proportion as the index . since they generally invest in a diversified market index portfolio, these funds take only the overall market risk ,while reducing the sector and stock specific risks through diversification. F) Value Funds : BABASAB PATIL MARKETING PROJECT REPORT Page No 37
are generally held in more or less equal proportion s between debt/money market securities and equities . By investing in a mix of this nature ,balanced funds seek to attain the objectives of income ,moderate capital appreciation and preservation of capital and are ideal for investors with a conservative and long-
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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 offer document shall contain disclosures which are adequate in order to enable the investors to make informed investment decision including the disclosure on maximum investments proposed to be made by the scheme in the listed securities of the group companies of the sponsor
The mutual fund and asset management company shall be liable to refund the application money to the applicants,(i) If the mutual fund fails to receive the minimum subscription amount referred to in clause (a) of sub-regulation (1); (ii) If the moneys received from the applicants for units are in excess of subscription as referred to in clause (b) of subregulation (1).
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 and or from the date of receipt of the request from the unit holders in any open ended scheme. Rules Regarding Advertisement:
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The offer document and advertisement materials shall not be misleading or contain any statement or opinion, which are incorrect or false.
The price at which the units may be subscribed or sold and the price at which such units may at any time be repurchased by the mutual fund shall be made available to the investors.
General Obligations:
Every asset management company for each scheme shall keep and maintain proper books of accounts, records and documents, for each scheme so as to explain its transactions
and to disclose at any point of time the financial position of each scheme and in particular give a true and fair view of the state of affairs of the fund and intimate to the Board the place where such books of accounts, records and documents are maintained.
The financial year for all the schemes shall end as of March 31 of each year. Every mutual fund shall have the annual statement of accounts audited by an auditor who is not in any way associated with the auditor of the asset management company.
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, relating to its activities as mutual fund, trustees or asset management company.
Restrictions On Investments:
A mutual fund scheme shall not invest more than 15% of its NAV in debt instruments
issued by a single issuer, which are rated not below investment grade by a credit rating BABASAB PATIL MARKETING PROJECT REPORT Page No 41
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 NAV of the scheme. All such investments shall be made with the prior approval of the Board of Trustees and the Board of asset management company.
No mutual fund under all its schemes should own more than ten per cent of any company's paid up capital carrying voting rights.
Such transfers are done at the prevailing market price for quoted instruments on spot basis. The securities so transferred shall be in conformity with the investment objective of the scheme to which such transfer has been made.
A scheme may invest in another scheme under the same asset management company or
any other mutual fund without charging any fees, provided that aggregate interscheme investment made by all schemes under the same management or in schemes under the management of any other asset management company shall not exceed 5% of the net asset value of the mutual fund.
The initial issue expenses in respect of any scheme may not exceed six per cent 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 badla finance. BABASAB PATIL MARKETING PROJECT REPORT Page No 42
Every mutual fund shall, get the securities purchased or transferred in the name of the mutual fund on account of the concerned scheme, wherever investments are intended to be of long-term nature.
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
i.
ii Any security issued by way of private placement by an associate or group company of the sponsor; or The listed securities of group companies of the sponsor which is in excess of 30% of the net assets [of all the schemes of a mutual fund]
No mutual fund scheme shall invest more than 10 per cent of its NAV in the equity
shares or equity related instruments of any company. Provided that, the limit of 10 per cent shall not be applicable for investments in index fund or sector or industry specific scheme.
A mutual fund scheme shall not invest more than 5% of its NAV in the equity shares or
equity related investments in case of open-ended scheme and 10% of its NAV in case of close-ended scheme.
ON-LINE PROCEDURE:
I IIL
/ 5p Users
5p investor can use their trading ID & Fund Transfer (Ledger) R Registered Users N New User password for availing BABASAB PATIL MARKETING PROJECT REPORT online Equity IPO & M Mutual Funds. T Thank you Registration R
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form
L Login
ID
P Password
Investor has to accept POA terms & conditions & also need to send physical copy of POA by courier or p post ASAP
P POA
Confirmation Product
s s Investor has to select his/her correct DP Name from list & input DP ID & Beneficiary account. Allotment proceeds will be credited to this t DP Account
M MF
I IPO
C Company
D DP
Details of Shares
S Scheme
Select
T Transaction
N No
Report Report
C Confirmation PAN Card is compulsory, for investments greater than or equal to Rs. 5 50000.
R Reminder
for Documents
R Redirect
to Payment Gateway
Fund Industry in India
:
Growth
of
the
Mutual
The mutual fund industry has seen various phases in India and has evolved over the last 10 years in a big way. It started in India in 1963 with the setting up of
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The latest phase in the evolution of the industry started when Unit Trust of India (UTI) was bifurcated into two separate entities. The first one is the specified undertaking of UTI and covers mainly the AUM of US-64 (the first mutual fund scheme in India) and other assured return schemes. The second is the UTI Mutual Fund, which manages about 40 schemes and AUM worth Rs 209.76 billion as of December 2004.While the Indian mutual fund industry has grown in size by about 320% from March, 1993 (Rs 470 billion) to December, 2004 (Rs 1505 billion) in terms of AUM, the AUM of the sector excluding UTI has grown over 8 times from Rs.152 billion in March 1999 to Rs.1295 billion as at December 2004 (See Chart 1).
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01.02.05 02.02.05 03.02.05 04.02.05 Jan 200005.02.05 March 07.02.05 2000. 08.02.05 April 2000 09.02.05 -March 10.02.05 2001. 11.02.05 April 200112.02.05 March 14.02.05 2002. 15.02.05 April 200216.02.05 March 2003 17.02.05 April 2003March 2004 18.02.05 April 2004. 19.02.05 May 2004. Total June 2004. July 2004. August 2004 2822.05 2919.88 -97.83 September 2004. 3530.42 3759.18 -228.76 October 2004. 2861.36 3283.24 -421.88 November 2004. 3589.34 4284.71 -695.37 December 2004. 4795.59 5151.50 -355.91 January 2005. 3767.54 3219.83 547.71 February 2005 (upto 19th) 2545.81 2716.85 -171.04 BABASAB PATIL MARKETING PROJECT REPORT Total (April '04 - Feb. '05) 37253.53 38621.12 -1367.59
Net Purchase / Sales 900.43 5023.49 10959.22 12604.42 22700.75 2451.76 627.16 -1271.50 350.43 1354.69 1209.21 -464.47 1182.22 2700.60 2680.20 2141.60 12961.90
ANALYSIS OF CUSTOMER SATISFACTION: The Sample size selected for the survey was 100 .The respondents are the customers of KARVY CONSULTANT STOCK BROCKING LTD. were available for the survey,& their opinion was taken to know the customer satisfaction towards Mutual Funds. Q NO .1 Do you believe in savings? YES 100% NO 0%
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savings
100 100 Number of respondents 80 60 40 20 0 1 opinion 0 yes No
Interpretation: According to the survey we came to know that 100%respondents are believe in savings. from the selected sample all respondents save their earnings in investing in mutual funds.So they believe in savings.
Q NO .2 What is the minimum amount you save per month/quarterly/ half- yearly/yearly? 0-500 8 8% 500-1000 17 17% 1000-2000 26 26% 2000-5000 25 25% 5000 above 24 24%
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25 20 15 10 5 0
Interpretation: By conducting survey we came to know about the minimum amount of savings made by the Respondents 8% of respondents save between 0-500, 17%respondents save between 500-1000, & 26%of respondents save between 1000-2000, & 25% of the respondents save between 2000-5000& 24% of respondents save above 5000.So here maximum Respondents are fall in the category 1000-2000.
3 Q No : As customers while investing in Mutual Funds what factors do you see? [A] 1 60 60% 2 20 20% 3 10 10% 4 6 6% 5 3 3% 6 1 1%
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Saftey
60 60 50 40 30 20 10 0
No of Responden ts
20 10 6 3 5 1 6 Saftey 1
Ranks
Interpretation: According to the survey we know that 60% of respondents have given first preference to safety,20% of respondents are given second preference,10% respondents are given third preference ,6% of respondents are given fourth preference, as like 5% respondents given fifth ,1% respondents given sixth preference.
3 [B]
1 28 28%
2 34 34%
3 20 20%
4 14 14%
5 4 4%
6 0 0%
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Ranks
Interpretation:
According to the survey we came to know that 28% of the respondents have given first preference to rate of return, 34 % respondents have given second preference ,20% respondents have given third ,14% respondents have given fourth ,4% have given fifth.
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15
Interpretation: According to the survey we came to know that 2% respondents have given first preference,20%have Given second, 18% have given third,44%have fourth,15%have given fifth,1%have given as six.
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No of Responde nts
Ranks
Interpretation: According to the survey we came to know that 6% of respondents have given first,16%have given Second,37%have given third,14%have given fourth ,25% have given fifth,2%have given six preference.
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Flexibility 5
10
8 13
48
18
1 2 3 4 5 6
Interpretation: According to the survey we came to know that 3% of respondents have given first preference, 85 have given Second,13% have given third,18%have given fourth 48% have given fifth ,10% have given six preference.
3 [F] 1 1 1% 2 2 2% 3 2 2% 4 4 4% 5 5 5% 6 86 86%
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Interpretation: According to the survey we came to know that 1% of respondents have given first preference, 2% have given second, 2%have given third,4% have given fourth ,55have given fifth ,86% have given six preference.
Q No 4 : [ I]
63 5 30
63% 5% 30%
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Schemes of holding
63 70 60 50 40 No of Response 30 20 10 0 30
Equity
Debt
Balanced
Types of schemes Interpretation: Here the majority of respondents i,e,63% , have chosen Equity scheme for investing their savings in mutual funds &remaining 5%for debt & 30%for balanced scheme.
Q No 5 : How do you justify your performance of your service provider for over Mutual Fund distribution?
36 16 13 28
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Interpretation: For measuring the performance of Service provider 36% of respondents have chosen quality service ,as it indicates that the service provider will give more quality service to the public.& 16% have chosen steady,13%have chosen reach,28% have chosen safety ,7% have chosen nothing in particular. Q No 6: If you are aware of new services, then how do you come to know Abou t these services?
Friends News papers &Magazines Brokers Agents BABASAB PATIL MARKETING PROJECT REPORT
12 22 26 37
20
40
60
80
100
120
Extremely good Very good Neither good/bad Very bad Extremely bad
62 29 8 1 0
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Interpretation: According to the survey we came to know that overall rating of mutual fund scheme is that 62% of the respondents have chosen Extremely good ,29%have chosen very good ,8% have chosen Neither good / Bad ,1% have chosen very bad. So finally the Majority of the respondents say that this mutual fund scheme is Extremely good. Q No 8 : Overall how do you Rate the services of Your Financial Service Provider? 0% 20% 40% 60% 80% 100% 0 6 24 45 21 4 0% 6% 24% 45% 21% 4%
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6 33%
3 13%
4 20% 5 27%
Interpretation: From this survey we can see that overall rating the Services of Financial Service Provider in terms of Percentage is that, 40% of respondents are chosen 60%because They are satisfied up to 60%,24% respondents have satisfied 40%,21% respondents Have satisfied 80%,6%respondents have satisfied 20%,4%respondents have Satisfied 100% respectively. Q NO 9: Express your level of satisfaction about the following schems/services. [I]
S 46 46%
MS 35 35%
NE S/US 16 16%
MUS 3 3%
US 0 0%
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S MS NE S/US
MUS US
Opinion
Interpretation: From this we will see that about M UTUAL FUND scheme the level of satisfaction of the respondents is that 46% of respondents are satisfied,35% respondents are Mostly satisfied, 16% respondents are Neither satisfied/unsatisfied,3%respondents are Mostly unsatisfied. Hence the majority of the respondents is satisfied with the scheme. [II] S 40 40% MS 12 12% NE S/US 46 46% MUS 2 2% US 0 0%
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20 40 46
12
Interpretation: From this we will see that about TAX scheme, Most of the respondents arei,e,46% are Neither satisfied/unsatisfied about the scheme, 40% are satified,12% are Mostly satified,2%are Mostly satisfied .so the majority of the respondents have Chosen they are Neither satisfied or un satisfied about the scheme
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Insurance 50 50 40 30 20 10 0 33 15 2 0
Insurance
No of Responden ts
MS NE S/US Opinion
MUS US
From this survey it is clear that about INSURANCE Scheme 50%of the respondents are neither satisfied or unsatisfied about the scheme,33% of respondents are satisfied,15%are Mostly satisfied,2% are Mostly satisfied. Finally we will see that majority is 50%.
[IV]
S 38 38%
MS 10 10%
NE S/US 45 45%
MUS 5 5%
US 2 2%
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Bonds No of Respondents 38 50 40 30 20 10 0
M S S
45
10
Bonds 5 2
U S
S/ U S
N E
Opinion
Interpretation: From this it is clear that the level of satisfaction about BONDS is that 45%respondents are Neither satisfied or un satisfied,38%are satisfied, 10%are Mostly satisfied,5%are Mostly unsatisfied,2% unsatisfied about the bond schemes.
[V]
S 62 62%
MS 12 12%
NE S/US 25 25%
U S
MUS 1 1%
US 0 0%
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Interpretation: From this we know that the level of satisfaction about the Equity IPO is that 62% of the respondents are satisfied about the scheme,12% are Mostly satisfied, 25%are Neither satisfied or unsatisfied,1% are Mostly unsatisfied. So finally the majority of respondents are satisfied about the schemes .
S NO 1 2 3 4 5
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Recommendations
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Suggestions:
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QUESTIONNAIRE
: : : : : 18-25 1 lack 5lack 26-50 PH NO: 50 &Above 5lack-8 lack 8 lack & above
ANUUAL INCOME :
2) What is the minimum amount you save per month/quarterly/half-yearly/yearly? 0-500 500-1000 1000-2000 2000-5000 5000 above
3) As customers while investing in Mutual Funds what factors do you see? (Rank them No 1 for Preferred and No 6 for Least Preferred ) Safety Rate of Return Liquidity Tax Liability
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4) In which scheme are your holding your Mutual Fund? Equity Debt Balanced
5) How do you justify your performance of your service provider for over Mutual Fund distribution? Qty services Steady Reach Safety Nothing in Particular
6) If you are aware of new services, then how do you came to know about these services? Friends News Papers& Brokers Magazines Agents Others
7) Overall, How would you rate Mutual Fund scheme? Extremely good Very good Neither good/bad Very bad Extermely bad
8) Overall how do you Rate the services of Your Financial Service Provider? 0% 20% 40% 60% 80% 100%
9) Express your level of satisfaction about the following schems/services.pleaseTick ( ) the following. Satisfied Mostly un Neither Mostly Un Unsatisfied Satisfied satisfied/Un Satisfied satisfied Mutual Fund Tax Insurance Bonds
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Suggestions:
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Glossary on Mutual Funds: Account Statement A physical document, similar to a bank account statement, representing the mutual fund units owned. Issued to the unitholder every time he/she carries out a transaction. Annual Report Unabridged financial results that comprise historical per unit statistics and complete portfolio of schemes of a mutual fund for a certain period. It is sent to unit holders once in a year. Appreciation An increase in an investments value. Asset Allocation The process of diversifying investments among different types of assets like stocks, bonds and cash in order to optimize risk / return tradeoff based on a persons financial situation and goals. Asset Class Different types of investments such as stocks, bonds, real estate and cash. Asset Management Company A firm that invests the pooled funds of retail investors in securities in line with the stated investment objectives. For a fee, the investment company provides more diversification, liquidity, and professional management service than is normally available to individual investors. Asset-Backed Security A debt instrument backed by loan paper or accounts receivable from banks, companies or other providers of credit. Assets An item of value owned by an individual or an organization. It could be stocks, cash, house or a car. Automatic Investment Plan Periodic investment of a fixed amount by a unitholder, either directly from his bank account or by issuing post-dated cheques, in his mutual fund account. It allows the investor to benefit from rupee cost averaging.
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Back-End/ Redemption Load One of two possible sales charge imposed by funds that charge fees. Redemption load is a charge an investor pays when units are redeemed or sold back to the fund. It sometimes depends on how long the investment is held -- generally the longer the time period, the smaller the charge. Balanced Scheme A mutual fund scheme with an investment objective of both long-term growth and Income, through investment in stocks and bonds. Typically, the stock-bond ratio ranges around 60%-40% in an effort to obtain the highest returns consistent with a low risk strategy. Basis Point (BP) The smallest measure used in quoting yields on fixed income securities. One basis point is one percent of one percent, or 0.01%. Bear Market A prolonged period of falling securities prices in a stock market. Benchmark A standard used for comparison. Usually to provide a point of reference for evaluating a fund's performance. The common benchmarks for equity-oriented funds is the BSE 200 index or the BSE Sensex. Beta A measure of a funds volatility in relation to the stock market, as measured by a stated index. By definition, the beta of the stated index is 1; a fund with a higher beta has been more volatile than the market, and a fund with a lower beta has been less volatile than the market. Based on past historical records, a beta higher than 1.0 indicates that when the market rises, the stock will rise to a greater extent than that of the market; likewise, when the market falls, the stock will fall to a greater extent. A beta lower than 1.0 indicates that the stock will usually change to a lesser extent than that of the market. The higher the beta, the greater the investment risk. Blue chip Stock of a nationally known company that has a long record of profit, growth, and dividend payment, and a reputation for quality management, products, and services. Bond A debt security, or an IOU, issued by a company or government agency. A bond investor lends money to the issuer and, in exchange, the issuer promises to repay the loan amount on a specified BABASAB PATIL MARKETING PROJECT REPORT Page No 74
Consumer Price Index The index compiled by a governmental agency which follows the cost of living by following the changes in price of basic goods and services over time. This index measures inflation. Convertible security Corporate security (usually preferred stock or bond) that is exchangeable for another form of security (usually common stock) at a predetermined price. Coupon Interest rate on a debt security that the issuer promises to pay to the holder until maturity. Usually expressed as a percentage of the face value of the security. Credit Rating A measure of a bond issuer's creditworthiness or the ability to repay the loan as rated by an independent rating agency, such as CRISIL, ICRA and CARE. BABASAB PATIL MARKETING PROJECT REPORT Page No 76
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Derivative Financial instrument whose value is based on the value of another underlying security. Depreciation A decline in an investment's value. Discount Refers to the selling price of a bond when its price is below its maturity value. Distribution The payment of dividends to unit holders by a mutual fund. Diversification The strategy of spreading investments among different securities to reduce risk. By nature, mutual funds are a diversified investment. Dividend When companies pay part of their profits to the shareholders those profits are called dividends. A mutual funds dividend is money paid to shareholders from investment income the fund has earned. The amount of each shares dividend depends on how well the company does. Dividend Reinvestment A unitholder service that allows dividend distributions to be reinvested automatically to purchase more fund units. Dow Jones Industrial Average The oldest and most quoted measure of stock market price movements, an indicator showing how the market is going. It is a price-weighted average of 30 actively traded blue chip stocks. Earnings (per share) The net income for a company during a specific period. It is calculated by subtracting the cost of sales, operating expenses and taxes from revenues, for a specific time period. It is the reason corporations exist and often the single most important determinant of a stocks price.
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FCNR A Fully Convertible Non-Rupee account that can be opened for funds coming in from abroad or from local funds. The funds in the account are held in a foreign currency. Fixed assets A long-term asset that will not be converted to cash within a year such as a house or a plot of land. Fixed deposit An investment instrument where you invest a fixed amount of money for a fixed period of time at a fixed rate of interest. Fixed Income Security A security that pays a fixed rate of interest such as a bond but do not offer an investor much potential for growth. Front-End Load A one-time charge that an investor pays at the time of buying units of a scheme. Fixed rate A loan in which the interest rates do not change during the entire term of the loan. Floating rate BABASAB PATIL MARKETING PROJECT REPORT Page No 79
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Repatriable The return from abroad of the financial assets of an organization or individual, and the conversion of foreign currency to Rupees. Risk In general, risk is the possibility of suffering loss. There are many types of risk, such as credit risk , principal risk, inflation risk, interest rate risk and investment risk. If you are prepared to accept greater risk, you have the chance of earning higher returns or profits on your money. Low-risk investments, while generally safer, do not usually produce a high return, hence the loss of potential gain. Risk/ reward trade-off
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Switching The movement of investment from one scheme to another usually within the family of schemes. An investor may switch schemes because of market conditions. Systematic Investment Plan (SIP)
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Value Investing The investment approach which favours buying under priced stocks that have the potential to perform well and increase in price. Volatility The rate by which the price of a security fluctuates in changing market conditions. Year To Date (YTD) A period in a calendar year starting January 1 of that year and ending on that date. Yield The annual rate of return on an investment usually expressed as a percentage. Yield Curve A graph depicting yield vis-a-vis maturity. If short-term rates are lower than long-term rates, it is a positive yield curve, if short-term rates are higher, it is a negative or inverted yield curve. If there is isnt much difference, it is a flat yield curve. Yield To Maturity The yield earned by a bond if held to maturity (YTM)
Zero Coupon Bond A bond issued at a discount, which accrues interest that is paid in full at maturity. The maturity value an investor receives is equal to the principal invested plus interest earned compounded semi-annually at the original rate to maturity. Interest income from zero-coupon bonds is subject to taxes annually even though no payments will be made.
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Bibliography
Web sites:
www.Karvy.com www .Karvy mutualfunds.com www. AmfiIndia.com www.sharekhan.com www. Indiamart.com www.Indiainfoline.com www.Equity masters.com
Books:
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