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Preference Among Advisors Towards Mutual Fund at KARVY STOCK BROKING LTD Gagandeep
Preference Among Advisors Towards Mutual Fund at KARVY STOCK BROKING LTD Gagandeep
Preference Among Advisors Towards Mutual Fund at KARVY STOCK BROKING LTD Gagandeep
ON
SUBMITED BY
Prashant J sh!
Under the guidance of
UNIVERSITY OF PUNE
In partial fulfillment of the requirement for the award of the degree of Ma ter in Mar!eting Management"MMM# Through INSTITUTE OF BUSINESS MANAGEMENT ' RESEARCH( CHINCHWAD PUNE( )**+*, A$EDAMI$ YEA% &''()**
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ACKNOWLEDGEMENT
I am reall+ happ+ and e,ited in repre enting thi +ou/ ummer training pro-ect report .efore
I mu t e,pre m+ gratitude toward 0A%1Y STO$0 B%O0IN2 3TD for gi4ing me an opportunit+ to wor! with on thi report/ M+ incere gratitude to Mr A-h!na. Prasa$. "5ead6 northern region67Di tri.ution8 !ar4+# and Dr. Asha Pan#h/an$% "Director6 IBM%6 chinchawad6 9une#6 for pro4iding me with an opportunit+ to wor! with !ar4+ toc! .ro!ing limited/ I am highl+ inde.ted to Mr. Var0n Pan$%16 product head " Di tri.ution#6 0ar4+ Stoc! Bro!ing 3td/ Allaha.ad al o m+ compan+ pro-ect guide6 who ha pro4ided me with the nece ar+ information and hi 4alua.le ugge tion and comment on .ringing out thi report in the .e t po i.le wa+/ I al o than! Ma$a2 Ar#hana B r$%6 9ro-ect guide6 IBM%6 chinchwad6 9une who ha incerel+ upported me with the 4alua.le in ight into the completion of thi pro-ect/ I am grateful to Mr. Na.a3 A4ar5a3 ".ranch co)ordinator6 0ar4+6 Allaha.ad# and all of the mem.er of $i4il 3ine .ranch6 who ha4e helped me in the ucce ful completion of thi pro-ect6 pecial mention of Mr/ Anil Agarwal6 Mr/ Dine h6 Mr Mani h 6 Mr/Neera-6 and Mr Mu!e h6 The+ ha4e al o pro4ided me a 4alua.le ugge tion and e,cellence guidance a.out thi training6 which pro4ed 4er+ helpful to me to utili:e m+ theoretical !nowledge in practical field/ 3a t .ut not the lea t m+ heartfelt lo4e for m+ parent 6 who e con tant upport and .le ing helped me throughout thi pro-ect/ I am al o grateful to m+ friend 6 to all !nown and un!nown indi4idual who ha4e gi4en me their con tructi4e ad4i e6 educati4e ugge tion6 encouragement6 co)operation and moti4ation to prepare thi report/
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DECLARATION
Management and %e earch=6 $hinchwad6 9une/ >ormall+ declare that the pro-ect wor! titled "A STUDY ON PREFERENCE AMONG ADVISORS TOWARDS MUTUAL FUND& wa carried out .+ me at Kar.1 St #6 Br 6!n4 Lt$6 in partial fulfillment of requirement for the award of the degree of Ma ter? in Mar!eting Management under Uni4er it+ of 9une/ Thi pro-ect wa under ta!en a a part of academic curriculum according to the Uni4er it+ of 9une6 .+ it %ule and %egulation/
Date@ 9lace@ 9une Institute of Business Management & Research, Chinchwad, Pune
E7%#0t!.% s022ar1
According to the curriculum of Uni4er it+ of 9une6 we are required to do ummer training for two month in an+ compan+ to get the practical !nowledge of corporate world/ Thi pro-ect ha .een a great learning e,perience for me at the ame time it ga4e me enough cope to implement m+ anal+tical a.ilit+/ Thi pro-ect a a whole can .e ummari:ed a .elow/ Pr 8%#t t!t3%9: The t!t3% of the pro-ect i <A STUDY ON 9%E>E%EN$E O> T5E AD1ISO%S TOAA%DS MUTUA3 >UND=
O-8%#t!.%9: The -8%#t!.% of the pro-ect i to find out the preference among financial ad4i ior toward mutual fund in4e tment/ It al o o.-ect the preference of ad4i or toward 0A%1Y
S# /%9: Thi pro-ect ha a lot of s# /e/ It will help the organi:ation in man+ wa+ / An organi:ation ma+ !now6 what are the preference of their ad4i or and .u ine o the+ can wor! on that accordingl+/ a ociate
R%s%ar#h 2%th $ 3 419: Thi pro-ect wor! i limited to the cit+ A33aha-a$/ The data pro4ided .+ the organi:ation wa B'' .ut out of that*'' ample were randoml+ elected therefore the ample i:e i *''/
The finding of the re earch are@) ) ) ) The awarene among ad4i or i much more than a it wa e,pected/
The rea on for not dealing in mutual fund i pa+ out factor/ The ad4i or are ha4ing hortage of time to attend eminar /
L!2!tat! ns9: The 3!2!tat! ns of the re earch are@) ) ) The re earch i limited to the cit+ Allaha.ad/ Sample i:e wa onl+ *'' a 6 man+ of them were u.).ro!er C.u ine a ociate of !ar4+ and the+ are limited in num.er/ ) ) The re earch proce wa a .it e,pen i4e and it wa .eared .+ me/
C n#30s! n9: The conclu ion i a follow / ) Due to higher return D preference of in4e tor 6 the ad4i or are elling mutual fund6 .ut due to low pa+ out factor the preference of ad4i or are changing/ ) 0A%1Y Allaha.ad i not a.le to pro4ide er4ice a e,pected6 due to lac! of taff/ ) The awarene le4el among ad4i or i quite high/
R%# 22%n$at! n9: Institute of Business Management & Research, Chinchwad, Pune Page 4
quite high6 .ut er4ice part i lagging6 o compan+ need proper mar!eting of their all er4ice .+ di tri.ution of form 6 collection of form 6 arranging eminar etc/
TABLE OF CONTENTS SR.NO * & B G H I J F ( *' ** CONTENTS INT%ODU$TION O%2ANIEATION 9%O>I3E INDUST%Y 9%O>I3E S$O9E O> AO%0 OB;E$TI1ES %ESEA%$5 MET5ODO3O2Y DATA $O33E$TION D ANA3YSIS >INDIN2S 3IMITATIONS %E$OMMENDATIONS $ON$3USIONS PAGE NO *)& B)*F *()GH GI)GJ GF)H' H*)HI HJ)J& JB)JG JH)JI JJ)JF J()F' Page 4i
*& *B
BIB3IO2%A95Y ANNEKU%E
F* F&)FH
LIST OF TABLES
TAB3E NO/ J/B/* J/B/& J/B/B J/B/G J/B/H J/B/I J/B/J J/B/F J/B/( J/B/*' J/B/** J/B/*& J/B/*B J/B/*G J/B/*H TO9I$ Age 2ender Education AM>I $ertified In4e tment option 9referred 9roduct No/ of cu tomer 9a+ment period Sati faction le4el for 9a+ment period Ta, a4ing in4e tment >a4orite AM$ No entr+ load Ad4i or of 0A%1Y Sati faction le4el B+ er4ice Training and eminar 9A2E NO/ H( H( I' I* I& IB IG IH IH II IJ IF I( J' J* Page 4ii
J/B/*I
Aor! a emplo+ee
J&
LIST OF FIGURES TABLE NO. J/* J/& J/B J/G J/H J/I J/J J/F J/( J/*' TOPIC Age and 2ender Education AM>I $ertified In4e tment option 9referred 9roduct No/ of cu tomer 9a+ment period D Sati faction le4el for 9a+ment period Ta, a4ing in4e tment >a4orite AM$ No entr+ load PAGE NO. H( I' I* I& IB IG IH II IJ IF
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Ad4i or of 0A%1Y Sati faction le4el B+ er4ice Training and eminar Aor! a emplo+ee
I( J' J* J&
LIST OF ABBREVIATIONS
SL.NO. * & B G H I J F (
ACRONYM M> AM$ I9O N>O DEMAT % D T A2ENT AUM NA1 E3SS
E;PANSION Mutual >und A et Management $ompan+ Initial 9u.lic Offering New >und Offer Demateriali:ed %egi trar and Tran fer agent A et Under Management Net A et 1alue Equit+ 3in!ed Sa4ing Scheme Page i,
*' ** *& *B *G *H
A ociation of Mutual >und in India 9ermanent Account Num.er S+ tematic Tran fer 9lan S+ tematic In4e tment 9lan S+ tematic Aithdrawal 9lan Securit+ E,change Board of India
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CHAPTER *
INTRODUCTION
Page *
*.*
INTRODUCTION
"A tud+ on preference among ad4i or toward mutual fund=/ It i an anal+tical re earch .a ed on 4ariou a pect a ociated with ale and promotion of Mutual >und/ $ompan+ want to penetrate deeper into the mar!et/ To achie4e thi goal ucce full+ compan+ want to !now the effecti4ene of it product D er4ice / of it product/
>or thi purpo e compan+ wanted to tud+ the mar!et effecti4ene $ompan+ want to !now a.out awarene regarding the product6 er4ice pro.lem6 etc/ %ea on for election of the topic @)
$u tomer are 4er+ important for an+ .u ine / >inancial .u ine their pro.lem L
through certified ad4i or / So it i 4er+ important to !now6 what the+ wantL6 Ahat are Ma!ing new ad4i or for elling the product i a .it co tl+6 than timulating old and dead ad4i or / It .etter to ort out the grie4ance D a it will automaticall+ generate the .u ine /
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CHAPTER <
ORGANI=ATIONAL PROFILE
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<.*
<Succe
If we loo! for e,ample to pro4e thi quote then we can find man+ .ut there i none li!e that of !ar4+/ Bac! in the +ear *(F*6 fi4e people created hi tor+ .+ e ta.li hing !ar4+ and compan+ which i toda+ !nown a !ar4+6 the large t financial er4ice pro4ider of India/ S0##%ss s0tras > 6ar.19 The ucce tor+ of !ar4+ i dri4en .+ F ucce utra adopted .+ it namel+ tr0st( with !nt%4r!t1( $%$!#at! n( # 22!t2%nt( %nt%r/r!s%( har$ 5 r6 an$ t%a2 /3a1( 3%arn!n4 an$ !nn .at! n( %2/ath1 an$ h02!3!t1. The e are the 4alue that .ind ucce !ar4+/ V!s! n > 6ar.19 To achie4e D u tain mar!et leader hip6 0ar4+ hall aim for complete cu tomer ati faction6 .+ com.ining it human and technological re ource 6 to pro4ide world cla qualit+ er4ice / In the proce 0ar4+ hall tri4e to meet and e,ceed cu tomerM ati faction and et indu tr+ tandard / M!ss! n stat%2%nt9
Our mission is to be a leading and 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.
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C 2/an1 .%r.!%59
0ar4+ wa e ta.li hed a !ar4+ and compan+ .+ fi4e chartered accountant during the +ear *(J()F'6 and then it wor! wa confined to audit and ta,ation onl+/ 3ater on it di4er ified into financial and accounting er4ice during the +ear *(F*)F& with a capital of % *H''''/ It achie4ed it fir t mile tone after it fir t in4e tment in technolog+/ 0ar4+ .ecame a !nown name during the +ear *(FH)FI when it fora+ed into capital mar!et a regi trar/
<!ar4+= of &''F/ 0ar4+ .lo omed with the etting up of it fir t .ranch at Mum.ai during the +ear *(FJ)FF/ The turning point came in the +ear *(F( when it decided to enter into one of the not onl+ emerging rather potential field too i/eN toc! .ro!ing/ It added the feather of toc! .ro!ing into it cap/ At the ame time it .ecame the mem.er of 5+dera.ad Stoc! E,change through a ociate firm !ar4+ ecuritie ltd and then !ar4+ ne4er loo!ed .ac!OO//it went on adding er4ice one after another6 it entered into retail toc! .ro!ing in the +ear *(('/ 0ar4+ in4e tor er4ice center were et up in the +ear *((&/ 0ar4+ which alread+ en-o+ed a wide networ! through it in4e tor er4ice center 6 entered into financial product di tri.ution er4ice in the +ear *((B/ One +ear more and Institute of Business Management & Research, Chinchwad, Pune Page H
!ar4+ wa now dealing into mutual fund er4ice too in the +ear *((G .ut it didn?t topped there6 it tepped into corporate finance and in4e tment .an!ing in the +ear *((H/ 0ar4+? trateg+ ha alwa+ .een .eing the fir t entrant in the mar!et/ 0ar4+ again hit the
limelight .+ .ecoming the fir t regi trar in the countr+ to .e awarded ISO (''& in the +ear *((J/ In ;anuar+ *((F6 0ar4+ .ecame fir t Depo itor+ 9articipant in Andhra 9rade h/ An ISO (''& $ompan+6 0ar4+? commitment to qualit+ and retail reach ha made it an Integrated >inancial Ser4ice $ompan+ .Then it tepped into the other mo t happening ector i/eN IT ena.led er4ice .+ e ta.li hing it own B9O unit and at a gap of -u t * +ear it too! the path of e)Bu ine through it we. ite www/!ar4+/com / Then it entered into in urance er4ice in the +ear &''* with the launch of it retail arm <!ar4+) the finapoli @ +our per onal finance ad4i or=/ Then in the +ear &''& it launched it 9$2"9ri4ate $lient 2roup# which loo! after it commenced econdar+ de.t and ADM trading/ It wa a decade which aw man+ Indian companie going glo.alO// o wh+ the large t financial er4ice pro4ider of India hould lag .ehindL 5ence6 !ar4+ launched <!ar4+ glo.al er4ice limited= after entering into a -oint 4enture with $omputer hare6 Au tralia in the +ear &''G/the +ear &''G al o aw !ar4+ entering into commoditie mar!eting through !ar4+ comtrade/ Year &''H aw 0ar4+ e ta.li hing a eparate .ranch for it in urance er4ice under the head < !ar4+ in urance .ro!ing ltd= and in the ame +ear6 after .eing impre ed with the rapid growth of !ar4+ toc! .ro!ing limited6 9$2 group of 5ong 0ong acquired &HP ta!e at 0SB3/ In the +ear &''I6 !ar4+ entered into one of the hotte t ector of pre ent time i/e real e tate through 0ar4+ realt+D er4ice "India# ltd/ hence 6 we can ee now !ar4+ .eing e ta.li hed a the lage t financial er4ice pro4ider of the countr+/ Toda+6 compan+ ha HJH .ranch office in BJH location all o4er the India D o4er ea at Du.ai D New Yor!/ The compan+ add H new office e4er+ month to the compan+? e4er growing national networ! in e4er+ corner of the countr+/ The compan+ er4ice o4er &H million indi4idual in4e tor through (''' trained D qualified taff6 &&H corporate and handle corporate di .ur ement that e,ceed % /HH'' $rore / it 5igh Networth Indi4idual /and maintain their portfolio and pro4ide them with other financial er4ice / In the +ear &''B6
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.+ fi4e chartered accountant 6 named a !ar4+ now turned into toda+? !ar4+ group6 the didn?t came to !ar4+ at a flow6 the hard wor! and dedication of it wor!force made it what it i toda+/ 2raduall+ it achie4ed the following landmar! and now it ha .ecame what we call the !ar4+ group6 now it i @ */ 3arge t independent di tri.utor for financial product / &/ Among t the top B toc! .ro!er/ B/ Among the top B depo itor+ participant / G/ 3arge t networ! of .ranche D .u ine H/ ISO (''& certified operation .+ DN1/ I/ Among t top *' in4e tment .an!er / J/ Ad-udged a one of the top H' IT u er in India .+ MIS outh A ia/ F/ >ull) fledged IT dri4en operation/ (/ India? no/* regi trar D ecuritie tran fer agent/ a ociate /
0A%1Y i a legendar+ name in financial er4ice 6 0ar4+? credit i defined .+ it mi ion to ucceed6 pa ion for profe ionali m6 e,cellent wor! ethic and cu tomer centric 4alue / Toda+ 0A%1Y i well !nown a a premier financial er4ice enterpri e6 offering a .road pectrum of cu tomi:ed er4ice to it client 6 .oth corporate and retail/ Ser4ice that 0A%1Y con tantl+ upgrade and impro4e are .ecau e of compan+? !ill in le4eraging technolog+/ Being one of the mo t techno) a44+ organi:ation around help compan+ to deli4er e4en more co t effecti4e financial olution in the horte t po i.le time/ Ahat .ear ample te timon+ to 0ar4+? in4e tor and cu tomer 6 all acro 0ar4+? ucce i the faith repo ed in compan+ .+ 4alued
touching e4er+ corner of the countr+6 e4en the mo t remote in4e tor can ea il+ acce er4ice and .enefit from compan+? e,pert ad4ice/ Page J
N 5 6ar.1 4r 0/ # ns!sts > *+ h!4h31 r%n 5n%$ %nt!t!%s 5h!#h ar% as > 33 59 <.@ KARVY SERVICES A AN OVERVIEW
*/ &/ B/ G/ H/ I/ J/ F/ (/ *'/ Stoc! .ro!ing Demat er4ice In4e tment product di tri.ution In4e tment ad4i or+ er4ice $orporate finance D Merchant .an!ing In urance Mutual fund er4ice IT ena.led er4ice %egi trar D Tran fer agent 3oan
C 2/an1 !s $%a3%r > > 33 5!n4 F!7%$ D%/ s!ts PUBLIC SECTOR S3. N . C 2/an1 Na2% * 5UD$O & Sardar Saro4ar Narmada Nigam 3td/ B Tamilnadu 9ower >inance $orporation 3td/ G NT9$ 7P0-3!# S%#t r FD 5!th 5h!#h Kar.1 $%a3sB NON BANKING FINANCE COMPANIES S3. N . C 2/an1 Na2% * A ho! 3e+land >inance 3td/ & Ba-a- Auto >inance 3td/ B Birla 5ome >inance 3td/ G $holamandalam In4e tment D >inance $o/ 3td/ H E cort >inance 3td/ I >ir t 3ea ing $ompan+ of India 3td/ J IDBI Su4idha F Nicco Uco Alliance $redit 3td/
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7FD > N n Ban6!n4 F!nan#% C 2/an!%s 5!th 5h!#h Kar.1 $%a3sB HOUSING FINANCE COMPANIES S3. N . C 2/an1 Na2% * $an >in 5ome 3td/ & Dewan 5ou ing >inance $orporation 3td/ B 2ruh >inance 3td/ G 5D>$ 3td/ H 9NB 5ou ing >inance 3td/ I Sundaram 5ome >inance 3td/ 7FD > H 0s!n4 F!nan#% C 2/an!%s 5!th 5h!#h Kar.1 $%a3sB MANUFACTURING COMPANIES S3. N . C 2/an1 Na2% * A 9 9aper Mill 3td/ & Amte! India 3td/ B Atul 3td/ G Ballarpur Indu trie 3td/ H $ham.al >ertili:er D $hemical 3td/ I E cort 3td/ J 2rea4e 3td/ F 2u-arat Al!alie D $hemical 3td/ ( Indian E,pre *' Ind)Swift 3td/ ** ;0 Indu trie 3td/ *& ;indal Steel D 9ower 3td/ *B Sound $raft Indu trie 3td/ *G Supreme Indu trie 3td/ *H Euari Indu trie 3td/ 7 FD > Man0>a#t0r!n4 C 2/an!%s 5!th 5h!#h Kar.1 $%a3sB 0ar4+ i dealer of following .ond %BI Sa4ing Bond N5AI Bond %E$ Bond
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* & B G H I J F ( *' ** *& *B *G *H *I *J *F *( &' &* && &B &G 7L!st > MF C
Alliance Mutual >und Birla Mutual >und Ban! of Baroda Mutual >und $an Ban! Mutual >und $hola Mutual >und Deut che Mutual >und DS9 Merrill 3+nch Mutual >und >ran!lin Templeton In4e tment 2I$ Mutual >und 5D>$ Mutual >und 5SB$ Mutual >und I3 D >S Mutual >und ;M Mutual >und 0ota! Mutual >und 3I$ Mutual >und 9un-a. National Ban! Mutual >und 9rudential I$I$I Mutual >und 9rincipal Mutual >und %eliance Mutual >und State Ban! of India Mutual >und Standard $hartered Mutual >und Sundaram Mutual >und SUN >D$ Mutual >und Tata Mutual >und 2/an!%s 5!th 5h!#h Kar.1 $%a3sB
A SEBI $ategor+ * %egi trar6 So far6 0ar4+ ha handled o4er IJH ISSUES a %egi trar to pu.lic i ue proce ed o4er H& million application and i in4e tor from 4ariou location pread o4er &'H client / er4icing o4er *I million
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tal!ing a.out the organi:ation tructure of !ar4+6 we ha4e the .oard of director a the upreme go4erning .od+ 6 the chairman .eing Mr/ $ 9artha arth+6 Mr/ M Yugandhar a the managing director6 Mr M S %ama!ri hna and Mr/ 9ra ad 4/ 9otluri a director / Institute of Business Management & Research, Chinchwad, Pune Page *'
The .oard of director head the !ar4+ group6 !ar4+ computer hare limited6 !ar4+ in4e tor er4ice ltd/6 !ar4+ comtrade6 !ar4+ toc! .ro!ing ltd/6 and !ar4+ glo.al er4ice ltd/ 0ar4+ group .eing the flag hip compan+ loo! after the functional department technolog+ er4ice and corporate qualit+/ 0ar4+ computer hare pri4ate limited facilitate mutual fund er4ice 6 hare regi tr+ and uch a
i ue regi tr+ wherea merchant .an!ing i loo!ed after .+ !ar4+ in4e tor er4ice ltd/ 0ar4+ toc! .ro!ing ltd head it another .ranch too ie/ 0ar4+ in urance .ro!ing ltd/ The er4ice offered .+ 0SB3 are@ toc! .ro!ing6 depo itor+6 re earch6 di tri.ution6 per onal client group and in titutional de !/ And finall+ the B9O er4ice are managed .+ !ar4+ glo.al er4ice ltd/ Summari:ing it in a diagram6 it can .e pre ented a @
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0ar4+ .eing the top regi trar and tran fer agent6 function a regi trar in mo t of the i ue in the countr+/ Tal!ing a.out the mutual fund er4ice offered .+ !ar4+6 we can get the product of BB AM$ o4er here/ it deal in .oth clo ed ended fund a well a open ended too/ Now one mu t .e thin!ing wh+ to get the mutual fund from !ar4+ in tead of getting it directl+ from AM$ L we ha4e great rea on for it@ the fir t one .eing N if we a4ail the er4ice of !ar4+ then we can get the information a.out all the AM$ and their product at a ingle place along with e,pert recommendation wherea at an AM$ we can get information a.out the product of that pecific AM$ onl+/ And the econd .eing wide networ! of !ar4+/ Nowada+ we can find !ar4+ office at remote area too/ Along with the e6 !ar4+ i 4er+ well handling the role of depo itor+ participant/ Being regi tered with .oth the depo itorie i/e/N NSD3 "national ecuritie depo itor+ ltd# and $DS3 "central depo itor+ er4ice ltd#6 !ar4+ can ha4e acce al o facilitate it in di tri.ution of retail financial product / 0ar4+ .elie4e in .eing updated alwa+ / So it i alwa+ read+ to u e late t technologie o that it client alwa+ .e in touch with the late t happening along with !ar4+/ It offer e).u ine 0ar4+? through internet through it we. ite@ www/!ar4+/com / Other than it6 it al o er4ice through SMSe / er4ice are not limited to it in4e tor onl+ rather it offering are for it pro4ide it 4ariou to .oth/ It wide networ!
corporate client and di tri.utor too/ it i 4er+ well aware of the fact that in thi era of nec! to nec! competition6 we cant ignore an+ of the a pect of our .u ine O/ o there? a offering for e4er+.od+Oe4er+one? welcome at !ar4+/ Wh1 sh 03$ !n.%st rs #h s% > r 6ar.1?
E,cellence i ne,t to nothingO/and here at !ar4+ e4er+.od+ trie their .e t to offer e,cellent er4ice to it clientele through it offering maintaining the !ar4+ culture which include @ */ $ontrolled and low co t er4ice culture@ !ar4+ i there to er4e it client at the minimum po i.le co t/ it control co t .+ it 4ariou co t) cutting technique and minimi:ation of a4oida.le co t / &/ 3arge 4olume proce ing capa.ilit+@ .eing the large t financial er4ice pro4ider in the countr+6 it ha the unique di tinction of operating it acti4itie on a large cale which .enefit all the partie cordiall+/
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B/ Adherence to trict time chedule@ !ar4+ !now that time i mone+ and trie it .e t to fini h the ta ! within the tipulated time chedule/ G/ E,perti e in coordinating multi)location re pon e @ !ar4+ ha got a wide networ! and hence one can find it .ranche at mo t of the place in India/ Thu it en-o+ it pre ence e4er+where and coordinate among it elf in ol4ing the querie and in re ponding to an+ ituation/ H/E,perti e in managing independent entitie uch a .an! 6 po t)office etc/@ the wor! culture of !ar4+ and the ethic followed in ide !ar4+ ma!e it wor!force compati.le with e4er+.od+6 o the !ar4+ people e ta.li he good coordination with independent entitie too/ I/ 9ooling of group re ource @ !ar4+ group con i t of eight u. idiarie 6 o it can ea il+ pool up it re ource for accompli hment of it goal 6 whene4er needed/ The group can help each other whene4er there are pea! and low 6 and e4en in the ca e when the+ ha4e huge target -u t a we aw few +ear .ac!6 Tata group pooling it re ource to acquire $oru /
According to the data pu.li hed in +ear &''(6 !ar4+ toc! .ro!ing ltd/ Operate through more than *&''' terminal 6 more than B''''' account are maintained and command o4er B/*GP mar!et hare of NSE/ The di tri.ution er4ice ha acce to more than % / G' .illion A et Under Management/ 0ar4+ .eing a depo itor+ participant with .oth NSD3 and $DS36 manage more than J''''' account from more than BF' location / Tal!ing a.out the regi tr+ er4ice 6 it manage o4er JH' pu.licC right i ue /at the ame time6 it i managing o4er *I million portfolio a regi trar/ If we too! a loo! at ome of the top corporate hou e a4ailing the er4ice of !ar4+ then we ha4e@ %eliance6 IO$6 IDBI63I$6 5indu tan Unile4er6 9rincipal Mutual >und6 Duet che Mutual >und6 Yogo!awa6 Marico Indu trie 6 9atni $omputer 6 Morgan Stanle+6 2lenmar!6 $%ISI36 BM6 0ota! Mahindra Ban!6 Bharti Tele4enture6 Info + Technologie 6 Aipro6 Infotech6 I9$36TATA con ultanc+ er4ice 6 UTI mutual fund etc/ Thu in total !ar4+ er4e o4er *I million in4e tor and B'' corporate / N 5( as th% /r 8%#t 5as #arr!%$ n !n A33aha-a$( s th%r% !s a s/%#!a3 r%>%r%n#% t 5 r6!n4 > 6ar.1 at N rth%rn D n% an$ 20t0a3 >0n$s !n /art!#03ar.
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The a.o4e diagram how the hierarch+ of 0ar4+ toc! .ro!ing ltd/ It can .e ea il+ depicted from the diagram that the Northern regional head "pre entl+ Mr/ A.hina4 9ra ad# i the upreme in the northern region6 under whom the 4ariou :onal head operate and under the e :onal head 6 the .ranch head operate/ Between each le4el o the hierarch+6 there e,i t a coordinator6 who act a the facilitator .etween the different head /
Kar.1 at A33aha-a$9 Now if we loo! at !ar4+? .ranch office at Allaha.ad6 then there e,i t two .ranche of !ar4+ 6 which are a follow@ */ $i4il 3ine / &/ Naini/
Depo it Institute of Business Management & Research, Chinchwad, Pune In urance In urance or+ or+ %ealt+ comm Stoc! .ro!ing .ro!ing particip particip .ro!ing .ro!ing oditie 9%ODU$T ant 9%ODU$T ant 5EADS 5EADS
Depo it
Mercha Mercha
Page *H 9MS
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0ar4+ $omputer hare mutual fund er4ice offer in4e tor er4ice to all the e three facet of the in4e tment proce /
and client er4ice / It can .e aid that !ar4+ i dedicated toward pro4iding qualit+ 0ar4+ .eing an intermediar+ i well regi tered with the A ociation of Mutual >und of India "AM>I#/ 0A%1Y ha got the regi tration no 7A%N ''*F8 for mutual fund 6 which i mentioned on e4er+ form/ After the procurement of form from 4ariou AM$ 6 the form are pa ed on to it 4ariou :onal and .ranch office "a per their requirement # and then further proce ing i done either directl+ or through u.).ro!er / 0ar4+ operate through it u.) .ro!er 6 a ociate and it e,cellent pool of own direct emplo+ee / The emplo+ee are offered alar+ .+ !ar4+ wherea the u.) .ro!er and a ociate get certain commi ion/ 0ar4+ ha & .ranche and * franchi e in the cit+ Allaha.ad/ All the wor! of mutual fund i regulated from Allaha.ad .ranch/ The main ource of earning for 0A%1Y i the .ro!erage offered .+ the 4ariou AM$ !nown a pa+)in/ The amount offered ma+ 4ar+ from AM$ to AM$/ Al o6 the franchi ee ha4e to pa+ a certain amount e4er+ month/ Now !ar4+ al o pa+ a certain amount to the u. .ro!er and a ociate !nown a pa+)out/ The pa+out i decided according to the procurement done .+ them/
R%#r0!t2%nt9 0ar4+ ha an en4ia.le pool of d+namic emplo+ee / It people power ha a great contri.ution in ma!ing it the No/ * financial intermediar+/ All the emplo+ee of !ar4+ dealing in mutual fund ha4e to go through AM>I te t/ The recruitment proce i at par with the indu tr+ tandard 6 it i mo tl+ done through campu recruitment from reputed B) chool / Other than that6 it al o recruit through direct inter4iew and 2D a per their requirement/ 0ar4+ ne4er compromi e with qualit+ that? the rea on it i e,celling .+ pro4iding qualit+ er4ice to all the in4e tor 6 client 6 AM$ etc/ a ociated with it/
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$5A9TE% B
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M0t0a3 >0n$s@ A mutual fund i a profe ionall+)managed firm of collecti4e in4e tment that pool mone+ from man+ in4e tor and in4e t it in toc! 6 .ond 6 hort)term mone+ mar!et in trument 6 andCor other ecuritie /in other word we can a+ that A Mutual >und i a tru t regi tered with the Securitie and E,change Board of India "SEBI#6 which pool up the mone+ from indi4idual C corporate in4e tor and in4e t the ame on .ehalf of the in4e tor Cunit holder 6 in equit+ hare 6 2o4ernment ecuritie 6 Bond 6 $all mone+ mar!et etc/6 and di tri.ute the profit / The 4alue of each unit of the mutual fund6 !nown a the net a et 4alue "NA1#6 i mo tl+ calculated dail+ .a ed on the total 4alue of the fund di4ided .+ the num.er of hare currentl+ i ued and out tanding/ The 4alue of all the ecuritie in the portfolio in calculated dail+/ >rom thi 6 all e,pen e are deducted and the re ultant 4alue di4ided .+ the num.er of unit in the fund i the fund? NA1/ NAV E T ta3 .a30% > th% >0n$FFFFFF. N . > shar%s #0rr%nt31 !ss0%$ an$ 0tstan$!n4 A$.anta4%s > a MF R Mutual >und pro4ide the .enefit of cheap acce R R R to e,pen i4e toc!
Mutual fund di4er if+ the ri ! of the in4e tor .+ in4e ting in a .a !et of a et A team of profe ional fund manager manage re earch input from in4e tment anal+ t / them with in)depth
Being in titution with good .argaining power in mar!et 6 mutual fund ha4e acce to crucial corporate information6 which indi4idual in4e tor cannot acce /
@.*
The mutual fund indu tr+ in India tarted in *(IB with the formation of Unit Tru t of India6 at the initiati4e of the 2o4ernment of India and %e er4e Ban!/ The hi tor+ of mutual fund in India can .e .roadl+ di4ided into four di tinct pha e /
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.an! and 3ife In urance $orporation of India "3I$# and 2eneral In urance $orporation of India "2I$#/ SBI Mutual >und wa the fir t non) UTI Mutual >und e ta.li hed in ;une *(FJ followed .+ $an.an! Mutual >und "Dec FJ#6 9un-a. National Ban! Mutual >und "Aug F(#6 Indian Ban! Mutual >und "No4 F(#6 Ban! of India ";un ('#6 Ban! of Baroda Mutual >und "Oct (&#/ 3I$ e ta.li hed it mutual fund in ;une *(F( while 2I$ had et up it mutual fund in Decem.er *(('/At the end of *((B6 the mutual fund indu tr+ had a et under management of % /GJ6''G crore /
repre enting .roadl+6 the a et of US IG cheme6 a ured return and certain other cheme The econd i the UTI Mutual >und 3td6 pon ored .+ SBI6 9NB6 BOB and 3I$/ It i regi tered with SEBI and function under the Mutual >und %egulation / con olidation and growth/ A at the end of Septem.er6 &''G6 there were &( fund 6 which manage a et of % /*HB*'F crore under G&* cheme /
Bas%$ n th%!r str0#t0r%9 Open-ended funds@ In4e tor can .u+ and ell the unit from the fund6 at an+ point of time/ Close-ended funds@ The e fund rai e mone+ from in4e tor onl+ once/ Therefore6 after the offer period6 fre h in4e tment cannot .e made into the fund/ If the fund i li ted on a toc! e,change the unit can .e traded li!e toc! "E/g/6 Morgan Stanle+ 2rowth >und#/ %ecentl+6 mo t of the New >und Offer of clo e)ended fund pro4ided liquidit+ window on a periodic .a i ha4e relati4el+ low liquidit+/ uch a monthl+ or wee!l+/ %edemption of unit can .e made during pecified inter4al / Therefore6 uch fund
ii/
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Bas%$ n th%!r !n.%st2%nt -8%#t!.%9 Equity funds@ The e fund in4e t in equitie and equit+ related in trument / Aith fluctuating hare price 6 uch fund how 4olatile performance6 e4en lo e / 5owe4er6 hort term fluctuation in the mar!et6 generall+ moothen out in the long term6 there.+ offering higher return at relati4el+ lower 4olatilit+/ At the ame time6 uch fund can +ield great capital appreciation a 6 hi toricall+6 equitie ha4e outperformed all a et cla e in the long term/ 5ence6 in4e tment in equit+ fund hould .e con idered for a period of at lea t B)H +ear / It can .e further cla ified a @
i# Inde, fund ) In thi ca e a !e+ toc! mar!et inde,6 li!e BSE Sen e, or Nift+ i trac!ed/ Their portfolio mirror the .enchmar! inde, .oth in term of compo ition and indi4idual toc! weightage / ii# Equit+ di4er ified fund ) *''P of the capital i in4e ted in equitie different ector and toc! / iii# Di4idend +ield fund ) it i imilar to the equit+ di4er ified fund e,cept that the+ preading acro
in4e t in companie offering high di4idend +ield / i4# Thematic fund ) In4e t *''P of the a et in ector which are related through ome theme/ e/g/ )An infra tructure fund in4e t in power6 con truction6 cement ector etc/
4# Sector fund ) In4e t *''P of the capital in a pecific ector/ e/g/ ) A .an!ing ector fund will in4e t in .an!ing toc! / 4i# E3SS) Equit+ 3in!ed Sa4ing Scheme pro4ide ta, .enefit to the in4e tor /
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Ba3an#%$ >0n$9 Their in4e tment portfolio include .oth de.t and equit+/ A a re ult6 on the ri !)return ladder6 the+ fall .etween equit+ and de.t fund / Balanced fund are the ideal mutual fund 4ehicle for in4e tor who prefer preading their ri ! acro in trument / >ollowing are .alanced fund cla e @ i# De.t)oriented fund )In4e tment .elow IHP in equitie / ii# Equit+)oriented fund -In4e t at lea t IHP in equitie 6 remaining in de.t/ D%-t >0n$9 The+ in4e t onl+ in de.t in trument 6 and are a good option for in4e tor a4er e to idea of ta!ing ri ! a ociated with equitie / Therefore6 the+ in4e t e,clu i4el+ in fi,ed)income in trument li!e .ond 6 de.enture 6 2o4ernment of India ecuritie N and mone+ mar!et in trument uch a certificate of depo it "$D#6 commercial paper "$9# and call mone+/ 9ut +our mone+ into an+ of the e de.t fund depending on +our in4e tment hori:on and need /
!.
4ariou
L!L0!$ >0n$s: The e fund in4e t *''P in mone+ mar!et in trument 6 a large portion .eing in4e ted in call mone+ mar!et/ G!3t >0n$s ST: The+ in4e t *''P of their portfolio in go4ernment ecuritie of and T).ill /F3 at!n4 rat% >0n$s : In4e t in hort)term de.t paper / >loater in4e t in de.t in trument which ha4e 4aria.le coupon rate/
!!.
!!!.
Ar-!tra4% >0n$: The+ generate income through ar.itrage opportunitie due to mi ) pricing .etween ca h mar!et and deri4ati4e mar!et/ >und are allocated to equitie 6 deri4ati4e and mone+ mar!et / 5igher proportion "around JHP# i put in mone+ mar!et 6 in the a. ence of ar.itrage opportunitie /
!..
G!3t >0n$s LT) The+ in4e t *''P of their portfolio in long)term go4ernment ecuritie / In# 2% >0n$s LT: T+picall+6 uch fund in4e t a ma-or portion of the portfolio in long)term de.t paper / MIPs: Monthl+ Income 9lan ha4e an e,po ure of J'P)('P to de.t and an e,po ure of *'P)B'P to equitie / FMPs: fi,ed monthl+ plan that of the fund/ in4e t in de.t paper who e maturit+ i in line with
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@.@
In.%st2%nt strat%4!%s9
*. S1st%2at!# In.%st2%nt P3an9 under thi a fi,ed um i in4e ted each month on a fi,ed date of a month/ 9a+ment i made through po t dated cheque or direct de.it facilitie / The in4e tor get fewer unit when the NA1 i high and more unit when the NA1 i low/ Thi i called a the .enefit of %upee $o t A4eraging "%$A# <. S1st%2at!# Trans>%r P3an9 under thi an in4e tor in4e t in de.t oriented fund and gi4e in truction to tran fer a fi,ed um6 at a fi,ed inter4al6 to an equit+ cheme of the ame mutual fund/ @. S1st%2at!# W!th$ra5a3 P3an9 if omeone wi he to withdraw from a mutual fund then he can withdraw a fi,ed amount each month/
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@.)
The entire mutual fund indu tr+ operate in a 4er+ organi:ed wa+/ The in4e tor 6 !nown a unit holder 6 hando4er their a4ing to the AM$ under 4ariou in4e tor ? need / The AM$ further in4e t the fund into 4ariou cheme / The o.-ecti4e of the in4e tment hould match with the o.-ecti4e of the fund to .e t uit the ecuritie according to the in4e tment o.-ecti4e/ The return generated from the in4e tment i pa ed on to the in4e tor or rein4e ted a mentioned in the offer document/
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To protect the intere t of the in4e tor 6 SEBI formulate policie and regulate the mutual fund / It notified regulation in *((B "full+ re4i ed in *((I# and i ue guideline from time to time/ SEBI appro4ed A et Management $ompan+ "AM$# manage of 4ariou cheme of the fund in it cu tod+/ the fund .+ ma!ing
in4e tment in 4ariou t+pe of ecuritie / $u todian6 regi tered with SEBI6 hold the ecuritie According to SEBI %egulation 6 two third of the director of Tru tee $ompan+ or .oard of tru tee mu t .e independent/ The A ociation of Mutual >und in India "AM>I# rea ure the in4e tor in unit of mutual fund that the mutual fund function within the trict regulator+ framewor!/ It o.-ecti4e i to increa e pu.lic awarene of the mutual fund indu tr+/ AM>I al o i engaged in upgrading uch a profe ional tandard and in promoting .e t indu tr+ practice in di4er e area 4aluation6 di clo ure6 tran parenc+ etc/ Document required "9AN mandator+#@ 9roof of identit+ @ */photo 9AN card &/ In ca e of non)photo 9AN card in addition to cop+ of 9AN card an+ one of the following@ dri4ing licen eCpa port cop+C 4oter idC .an! photo pa 9roof of addre .oo!/ "an+ of the following# @late t telephone .ill6 late t electricit+ .ill6 9a port6
late t .an! pa .oo!C.an! account tatement6 late t Demat account tatement6 4oter id6 dri4ing licen e6 ration card6 rent agreement/ O>>%r $ #02%nt9 An offer document i i ued when the AM$ ma!e New >und Offer"N>O#/ It? ad4i a.le to e4er+ in4e tor to a ! for the offer document and read it .efore in4e ting/ An offer document con i t of the following@ Standard Offer Document for Mutual >und "SEBI >ormat# Summar+ Information 2lo ar+ of Defined Term %i ! Di clo ure 3egal and %egulator+ $ompliance E,pen e $onden ed >inancial Information of Scheme $on titution of the Mutual >und Institute of Business Management & Research, Chinchwad, Pune Page &I
In4e tment O.-ecti4e and 9olicie Management of the >und Offer %elated Information/ K%1 In> r2at! n M%2 ran$029 a !e+ information memorandum6 popularl+ !nown a 0IM6 i attached along with the mutual fund form/ And thu e4er+ in4e tor get to read it/ It content are@ */ Name of the fund/ &/ In4e tment o.-ecti4e B/ A et allocation pattern of the cheme/ G/ %i ! profile of the cheme H/ 9lan D option I/ Minimum application amountC no/ of unit J/ Benchmar! inde, F/ Di4idend polic+ (/ Name of the fund manager" # *'/ E,pen e of the cheme@ load tructure6 recurring e,pen e **/ 9erformance of the cheme " cheme return 4C / .enchmar! return# *&/ Year) wi e return for the la t H financial +ear/
B/ In$!.!$0a3 a4%nts( Ban6s( NBFC9 in4e tor can procure the fund through indi4idual agent 6 independent .ro!er 6 .an! and e4eral non) .an!ing financial corporation too6 whiche4er he find con4enient for him/
B/ Liquid funds@ Short Term 2o4ernment In trument ? Intere t %ate a Benchmar! 6 ;9M T) Bill Inde, T 2%as0r% th% >0n$Cs /%r> r2an#%( th% # 2/ar!s ns ar% 0s0a331 $ n% 5!th9 I# Aith a mar!et inde,/ ii# >und from the ame peer group/ iii# Other imilar product in which in4e tor in4e t their fund / @., F!nan#!a3 /3ann!n4 > r !n.%st rs Jr%>. t 20t0a3 >0n$sK9
In4e tor are required to go for financial planning .efore ma!ing in4e tment in an+ mutual fund/ The o.-ecti4e of financial planning i to en ure that the right amount of mone+ i a4aila.le at the right time to the in4e tor to .e a.le to meet hi financial goal / It i more than mere ta, planning/
St%/s !n >!nan#!a3 /3ann!n4 ar%9 Ass%t a33 #at! n. S%3%#t! n > >0n$. St0$1!n4 th% >%at0r%s > a s#h%2%. In ca e of mutual fund 6 financial planning i concerned onl+ with .road a et allocation6 lea4ing the actual allocation of ecuritie and their management to fund manager / A fund manager ha to clo el+ follow the o.-ecti4e tated in the offer document6 .ecau e financial plan of u er are cho en u ing the e o.-ecti4e / Wh1 has !t -%# 2% n% > th% 3ar4%st >!nan#!a3 !nstr02%nts? If we ta!e a loo! at the recent cenario in the Indian financial mar!et then we can find the mar!et flooded with a 4ariet+ of in4e tment option which include mutual fund 6 equitie 6 fi,ed income .ond 6 corporate de.enture 6 compan+ fi,ed depo it 6 .an! depo it 6 99>6 life in urance6 gold6 real e tate etc/ all the e in4e tment option could .e -udged on the .a i of 4ariou parameter the e form uch a ) return6 afet+ con4enience6 4olatilit+ and liquidit+/ mea uring in4e tment option on the .a i of the mentioned parameter 6 we get thi in a ta.ular
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plan gi4ing the ma,imum return of % / *BJJ/(H per +ear which come to *I/FFP roughl+/ Ne,t we can ee if an+.od+ would ha4e underta!en the SI9 in %eliance di4er ified power ector fund would ha4e got return of app/ *I/HFP/ Ae can ee BOB growth fund6 DAS in4e tment opportunitie and 9rincipal fund gi4ing return of *H/((P6 *I/FFP6 and *H/IGP re pecti4el+ which i greater than an+ other monthl+ in4e tment option / 5owe4er the e return were onl+ for the period for ** month D therefore the return were not much/ Mar!et generall+ gi4e .etter return in long term/ Thu we can ea il+ ma!e out how SI9 i .eneficial for u / It ha le free6 it force the in4e tor to a4e and get them into the ha.it of a4ing/ Al o pa+ing a mall amount of % / *''' i ea + and con4enient for them6 thu putting no pre ure on their poc!et /
INDUSTRY DETAILS
>ollowing are li t of Mutual >und companie in India/
Sr. N .
* & B G H I J F ( *' ** *& *B *G *H *I *J *F
N . > S#h%2%s
BI H JG *J &H GH G' G' *H *B' H J( B& GB HH HH HI BH Page B&
*( &' &* && &B &G &H &I &J &F &( B' B* B&
Morgan Stanle+ Mutual >und 9un-a. National Ban! Mutual >und 9rudential I$I$I Mutual >und 9rincipal Mutual >und %eliance Mutual >und Sahara Mutual >und State Ban! of India Mutual >und Standard $hartered Mutual >und Sundaram Mutual >und SUN >D$ Mutual >und Tata TD Mutual >und Tauru Mutual >und Unit Tru t of India UTI Mutual >und
COMPETITORS DETAILS
*. Ba8a8 Ca/!ta3 It wa e ta.li hed in *(IG at Delhi/ In *(IH it inno4ate a new financial in trument
S$ompanie >i,ed Depo it ? and .ecome the fir t compan+ to rai e >i,ed Depo it / The -8%#t!.% > # 2/an1 !s t /r .!$% /r >%ss! na3 40!$an#% t !n.%st rs n 5h%r%( 5h%n an$ h 5 t !n.%st an$ t ass!st th% # r/ rat% s%#t r !n !ts r%s 0r#% ra!s!n4 a#t!.!t!%s. Ba8a8 Ca/!ta3 -%#a2% th% >!rst # 2/an1 t s%t 0/ PIn.%st2%nt C%nt%rsC a33 .%r In$!a > r th!s /0r/ s%. T $a1( Ba8a8 Ca/!ta3 has ,+ >>!#%s !n .%r )+ !2/ rtant In$!an C!t!%s an$ has a t%a2 > ar 0n$ N++ %2/3 1%%s nat! n5!$%. S%r.!#%s /r .!$%$ Merchant .an!ing Bu+ing and Selling of Mone+ Mar!et In4e tment Di tri.ution of financial product In4e tment Ad4i or+ Ser4ice Page BB
T $ompan+ fi,ed depo it T Bond T Mutual fund T 3ife in urance T 2eneral in urance T 9en ion cheme T 9o t office cheme T Ta, a4ing cheme T In urance lin!ed in4e tment cheme T Initial pu.lic offering T 5ou ing loan T N%I cheme T $ar in urance
F!nan#!a3 P3ann!n4 T In4e tment planning T %etirement planning T In urance planning T $hildrenM future planning T Ta, planning T Short)term ca h flow planning
<.MCS Lt$. It i e ta.li hed in *(FH in Delhi/ It i one of the large t Data 9roce ing 5ou e emplo+ing more than I'' people/ M$S 3td/ ha F .ranche all o4er India V 302%s Han$3%$ in4e tor / in4e tor / Billing D ettlement plan for Indian operation of IATA 2ene4a for */& million tic!et per annum co4ering "&I airline D o4er *&'' agent #/ S%r.!#%s O>>%r%$9 Institute of Business Management & Research, Chinchwad, Pune Page BG Mutual fund operation for &H fund 6 er4icing o4er G/H million Share regi tr+ acti4itie for o4er *'' corporate er4icing o4er *' million
%egi trar and Tran fer Agent %egi trar to I9O? C%ight I ue %egi trar to Open Offer %egi trar to Mutual >und Data 9roce ing for Airline 9rint Shop Ser4ice
M$S i a ma-or pla+er in the e acti4itie in the $ountr+ with a mar!et hare of a.out &HP/ M$S toda+ pro4ide the e er4ice to o4er *G' $orporate and Mutual >und for a total in4e tor .a e of *H million/ @. N.J.In$!a In.%st2%nts P.t. Lt$. N; India In4e t "formerl+ !nown a N; $apital toc! # wa growing financial er4ice tarted in *((G to cater to the
in4e tment ad4i or+ firm/ N; regard mutual fund a one of the .e t in4e tment a4enue a4aila.le to ati f+ an+ !ind of in4e tment need/ N; India In4e tment had o4er IN% H6'H' $rore of mutual fund a et under ad4ice with a wide pre ence in o4er *B' location in && tate in India/ The num.er are reflection of the tru t6 commitment and 4alue that N; hare with it client / ). ICICI S%#0r!t!%s Lt$. I$I$I Securitie 3imited "i)SE$# i a wholl+ owned in4e tment).an!ing u. idiar+ of ICICI L!2!t%$/ I$I$I i the onl+ non);apane e A ian financial in titution to .e li ted on the New Yor! Stoc! E,change "NYSE#/ I$I$I Securitie wa formed on &&nd >e./ *((B6 when I$I$IM Merchant Ban!ing Di4i ion wa pun off into a new compan+6 I$I$I Securitie toda+ i IndiaM leading In4e tment Ban! and one of the mo t ignificant pla+er in the Indian capital mar!et / I$I$I Bro!erage Ser4ice 3imited "IBS3# et up in March *((H6 IBS3 i a *''P u. idiar+ of i)SE$/ It commenced it ecuritie .ro!erage acti4itie in >e.ruar+ *((I and i regi tered with the National Stoc! E,change of India 3imited and The Stoc! E,change6 Mum.ai/ I$I$I ha tarted a we. ite I$I$Idirect/com which i the mo t comprehen i4e we. ite6 which Page BH
allow +ou to in4e t in Share 6 Mutual fund 6 Deri4ati4e ">uture and Option # and other financial product / I$I$I ha a large networ! of .ranche all o4er India/ S%r.!#%s >>%r%$9 N. HDFC 5D>$ i the leading financial compan+ in India/ IT ha large networ! of .ranche all o4er India/ 5D>$ Securitie which i full+ u. idiar+ of 5D>$ pro4ide demat er4ice/ 5D>$ and it u. idiar+ pro4ide following er4ice / Demat Ser4ice 3ife In urance Ban!ing Ser4ice 5ou ing >inance 1ehicle >inance Education 3oan 9er onal 3oan Mutual >und Merchant Ban!ing Demat Ser4ice Stoc! Bro!ing
G. K ta6 S%#0r!t!%s Lt$. 0ota! Securitie need no introduction a one of the large t toc! .ro!ing hou e in the countr+ and a leading di tri.utor of primar+ mar!et offering / 0ota! Securitie limited i a -oint 4enture .etween 0ota! Mahindra Ban! and 2oldman Sach 6 the international in4e tment .an!ing and .ro!erage firm/ 0ota! Securitie i a corporate mem.er of .oth the BSE and the NSE/ It i al o a depo itor+ participant with the National Securitie Depo itor+ 3imited "NSD3# for trading and ettlement of demateriali:ed hare / Institute of Business Management & Research, Chinchwad, Pune Page BI
S%r.!#%s >>%r%$9 Stoc! Bro!ing >inancial 9roduct Di tri.ution Demat Ser4ice In4e tment Ad4i or+ Ser4ice
I. M t!3a3 Os5a3 S%#0r!t!%s Lt$. Motilal O wal Securitie 3td "MOS3# i one of the leading equit+ re earch and .ro!ing hou e of India/ MOS3 ha a &')mem.er re earch team6 which i engaged round the cloc! in anal+:ing the Indian econom+ and corporate ector to identif+ equit+ in4e tment idea / A ia Mone+ Bro!erM 9oll &''& ha rated MOS3 a one of the .e t Indian .ro!ing hou e6 for re earch6 for the econd time ince &'''/ Motilal O wal i mem.er of NSD3 and $DSI3 for D9/ It ha wide networ! of .ranche / It ha *HF .ranche all o4er India S%r.!#%s O>>%r%$9 Demat Ser4ice Stoc! Bro!ing In4e tment Ad4i or+ Ser4ice
hare 6 de.enture etc/ and at the ame place al o demat it/ 0ar4+ al o pro4ide other in4e tment option to the ame per on at ame place li!e Mutual >und6 In urance6 >i,ed Depo it6 and Bond etc/ and help the per on in de igning hi portfolio/ B+ thi wa+ 0ar4+ pro4ide comfort to it cu tomer / 0ar4+ i al o po itioned according to %ies and &rout/ 0ar4+ i promoted a a no/ * in4e tment product di tri.utor and % D T agent of India/
Tar4%t Mar6%t9
0ar4+ u e de$ograp'ic seg$entation trateg+ and egment people .a ed on their occupation/ 0ar4+ u e selecti e speciali(ation trateg+ for mar!et targeting/ Target per on for the 0ar4+ Stoc! Bro!ing and 0ar4+ In4e tment Ser4ice are per on who can wor! a $A for ma!ing u.).ro!er/ u.).ro!er for the companie / $ompanie focu on Ad4i or of In urance and po t office6 Ta, con ultant and
A$.%rt!s!n4 an$ Pr 2 t! n9
The o.-ecti4e of ad4erti ing of 0ar4+ i to create awarene a.out er4ice of 0ar4+ among Institute of Business Management & Research, Chinchwad, Pune Page BF
W%a6n%ss%s9
5igh Emplo+ee Turno4er/
O// rt0n!t19
2rowth rate of mutual fund indu tr+ i B' to G''P during la t +ear and it e,pected that thi rate will .e maintained in future al o/ Mar!eting at rural and emi)ur.an area /
Thr%ats9
Increa ing num.er of local pla+er / 9a t image of Mutual >und/ No Entr+ load i affecting pa+out D .u ine directl+/
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S# /% > th% 5 r6
Mar!eting of >inancial product i a challenging a well a a growing field/ Scanning and future potential are the important part of compan+/ And when an+ per on collect the data related to thi topic then e4er+one notice it/ E4er+ mem.er of mar!eting department need thi data from e,ecuti4e to the product head/ A a mar!eting tudent it i important to !now a.out the real mar!et condition which de4elop the idea related to mar!et without going in mar!et and it al o pro4ide a re earch pattern to tudent/ Thi tud+ contain detailed !nowledge a.out6 awarene among ad4i or 6 the mar!et
hare of Mutual fund6 pro.lem of ad4i or for not elling the Mutual fund/ Thi will .e helpful for all the concerned per on / A ati fied ad4i or gi4e more ale than6 un ati fied per on/
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OB;E$TI1ES
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N.*
PROBLEM FORMULATION
definitel+ follow our predetermined
equence or tep in order to o.tain the de ired re ult or outcome / Though the entire of Mar!eting %e earch i quite comple, and require a con idera.le degree of !nowledge and !ill6 the tep of the 9ro.lem >ormulation i the mo t challenging and critical one for the re earcher a well a the re earch/ It i rightl+ aid that a pro.lem6 well defined i half ol4ed/ In toda+? competiti4e world companie cannot afford to reacti4e6 in tead the trend i toward proacti4e/ It i due to the increa ing competition that the companie cannot afford to underta!e re earch until omething goe wrong/ Thi can curtail the future growth or e4en affect the 4er+ e,i tence of the organi:ation eeing to the trend of .eing proacti4e in the futureN companie are allocating more re ource to the di cipline of re earch/ In uch ca e it .ecome a dut+ of re earcher to en ure that the organi:ation get an optimum return on the re ource it ha in4e ted/ Thu 6 9ro.lem >ormulation a ume great importance in Mar!eting %e earch/ The Mar!eting %e earch pro-ect underta!en .+ me for the S0ar4+ Stoc! .ro!ing 3imited? encompa e within it cope6 the tud+ of < Th% M0t0a3 F0n$ an$ t >!n$ 0t 2ar6%t / t%nt!a3 > KARVY In.%st r S%r.!#% Lt$. 5!th s/%#!a3 r%>%r%n#% t $!str!-0t! n > M0t0a3 F0n$ !n A33aha-a$ C!t1. C 2/an1 5ants t !n#r%as% !ts s0-:-r 6%rs 5h #an 5 r6 as !nt%r2%$!ar1 -%t5%%n # 2/an1 an$ th% !n.%st rs.&
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N.<
RESEARCH OBJECTIVES
An+ acti4it+ done without an o.-ecti4e in a mind cannot turn fruitful/ An o.-ecti4e pro4ide a pecific direction to an acti4it+/ O.-ecti4e ma+ range from 4er+ general to 4er+ pecific6 .ut the+ hould .e clear enough to point out with rea ona.le accurac+ what re earcher want to achie4e through the tud+ and how it will .e helpful to the deci ion ma!er in ol4ing the pro.lem/ The o.-ecti4e of an+ re earch i .a icall+ di4ided into two categorie /
Pr!2ar1 O-8%#t!.%9
To find out preference among ad4i or toward mutual fund /
To find out how man+ in4e tment ad4i or are intere ted in dealing of mutual fund/ To find out how man+ in4e tment ad4i or are willing to wor! with
N.@
SCOPE
It will help the organi:ation / The organi:ation ma+ !now6 what are the preference of their ad4i or and .u ine a ociate o6 the+ can wor! on that accordingl+/
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%EDEA%$5 MET5ODO3O2Y
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Th% -8%#t!.% > an1 r%s%ar#h !s -as!#a331 $!.!$%$ !nt t5 #at%4 r!%s.
Pr!2ar1 O-8%#t!.%9
To find out mar!et potential of 0ar4+ In4e tor Ser4ice 3td/
To find out how man+ in4e tment ad4i or are intere ted in dealing of mutual fund/ To find out how man+ in4e tment ad4i or are willing to wor! with
R%s%ar#h Pr #%ss
Identif+ 9ro.lemCO.-ecti4e >rame 5+pothe i Select %e earch De ign Select the Sample $ollection of Data Anal+:e the Data 9repare %eport
R%s%ar#h D%s!4n9:
A re earch de ign i a pattern or an outline of a re earch pro-ect? wor!ing/ It i a tatement of onl+ the e ential element of a tud+6 tho e that pro4ide the .a ic guideline
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for the detail of the pro-ect/ It compri e a erie of prior deci ion that ta!en together pro4ide ma ter plan for e,ecuting a re earch pro-ect / The tud+ wa conducted on the .a i of li t of re pondent who were targeted/ >rom that <A re earch de ign i the arrangement of condition for collection and anal+ i of Data in cu tomer preference were collected and were a.le to co4er almo t all the leading .rand / Thi wa %e earch De ign for the pro-ect/ T1/%s > R%s%ar#h D%s!4n */ De cripti4e re earch &/ E,plorator+ %e earch B/ E,perimental %e earch G/ $a ual de ign %e earch H/ $a e tud+ %e earcher ha adopted $%s#r!/t!.% r%s%ar#h $%s!4n .ecau eN a de cripti4e re earch i underta!en when re earcher want to !now the characteri tic of certain group/ De cripti4e or Sur4e+ %e earch De ign attempt to de cri.e and e,plain condition of the pre ent .+ u ing man+ u.-ect and que tionnaire to full+ de cri.e a phenomenon/ Sur4e+ re earch de ign C ur4e+ methodolog+ i one of the mo t popular for di ertation re earch/
preference in
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The %e earcher adopted per onal inter4iew method through tructured que tionnaire6 .ecau e it i de cripti4e tud+ which tud+ e,i ting thing and que tionnaire i cheaper a compared to chedule method6 co4er wide area6 collect detailed information of their opinion without pre ure to re pondent / Through per onal inter4iew re pondent ea il+ time and re pondent ta!e intere t a well a re pondent 6 it? a4oid .ia 6 re pondent ma+ feel free to e,pre am.iguit+ and le under tand the que tionnaire6 it? ta!ing le inter4iewer communicate with re pondent /
<K
Secondar+ data refer to the data6 which ha4e alread+ .een collected and anal+:ed .+ ome more el e u uall+ pu.li hed data are a4aila.le in/ ) ) ) ) 3i.rarie 3iterature 9eriodical $en u and %egi tration data Page G(
) ) ) ) ) ) ) ) ) ) )
Trade a ociation 2o4ernment department 9ri4ate ource $ommercial data >inancial data International organi:ation %eference and Bi.liographie 1olume of tati tic Ad4erti ing Internet Other ource
Sa2/3!n4 Pr #%$0r%s9:
%andom Sampling i u ed for the Sur4e+/
Sa2/3!n4 Un!t9:
Mutual >und Ad4i or in Allaha.ad area/
Sa2/3!n4 D%s!4n9:
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refer to Technique or the Method which the %e earcher would adopt in electing item I ha4e u ed .oth PC n.%n!%n#% Sa2/3!n4 M%th $C and PSn 5 Ba33 Sa2/3!n4 M%th $C
Sa2/3!n4 T%#hn!L0%s9:
The financial ad4i or were randoml+ elected from gi4en li t of B''
Sa2/3% Fra2%9:
In thi ur4e+ %e earcher ha elected *'' ad4i or out of B'' ad4i or a pro4ided .+ the ource /
Sa2/3% S!D%9:
A total ample i:e i of *'' %e pondent in Allaha.ad cit+/
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R%s%ar#h Instr02%nts9:
The re earch in trument u ed wa the "Str0#t0r%$ Q0%st! nna!r%&. The que tionnaire .a icall+ con i ted of a et of que tion that wa pre ented to the re pondent for their an wer / Thi wa far the .e t method u ed for the collection of 9rimar+ Data/ In the preparation of the que tionnaire6 care wa ta!en to ee that the wording of the que tion were a imple a po i.le and would not cau e an+ train to the re pondent in under tanding or interpreting of the que tion 6 howe4er ome financial term were u ed a financial ad4i or were aware a.out it/ Al o the flow of the que tion ha .een !ept in a logical order a much a po i.le/ The que tionnaire include clo ed ended and open ended que tion / The clo ed ended que tion include .oth dichotomou i/e/ +e Cno t+pe and the multiple)choice que tion /
I.<
Data Anal+ i i .a ed on the data collected .+ wa+ of Que tionnaire / >rom the collected data finding are e,tracted/ The data i ta.ulated and frequenc+ di tri.ution chart i prepared/
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I.@
Ta-3% n .I.@.* 9arameter &')&H &I)B' B*)BH BI)G' H*)a.o4e Total Ta.le no/J/B/& 2ender Male >emale Total
P of re pondent *&P *FP *FP *&P G'P *''P P of re pondent JIP &GP *''
40% 35% 30% 25% 20% 15% 10% 5% 0% 20-25 26-30 31-35 36-40 41 above Advisors
Figure no.).1
)*+ $ale , -. + Fe$ale
Ana31s!s JIP of the re pondent are male6 wherea remaining &GP are female/ In a.o4e chart we can ee that Young ad4i or are few in num.er6 where a e,perienced are in ma-orit+ a.o4e G' +ear of age/
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<K E$0#at! n?
Education
Ana31s!s &BP of the re pondent are Undergraduate6 wherea Ma-orit+ of them are 2raduate with HJP There are a few ad4i or which are 9o t 2raduate D ha4ing high !nowledge/
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70% 60% 50% 40% 30% 20% 10% 0% Yes No Figure no.).3
A4F5 1 Association of 4utual Funds in 5ndia
AMFI
Ana31s!s The num.er of AM>I certified ad4i or i quite high6 which mean the+ ha4e pa ed AM>I e,am D are quite !nowledgea.le a compared to non)amfi/
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)K As an !n.%st2%nt a$.!s r( 5h!#h !n.%st2%nt #0st 2%rs( an$ M%nt! n R%as ns a3s ?
/t! ns 1 0 s044%st t
1 0r
Ta-3% n .I.@.N O/t! ns In urance Mutual >und >i,ed Depo it Bond Other Total
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Ta-3% n . I.@.G
R%as ns %eturn %i ! $ommi ion Safet+ Ta, .enefit Total N > r%s/ n$%nts &B *J &G *I &' *'' O > r%s/ n$%nts &B *J &G *I &' *''
R1
R2
Figure 6o.).9
"
:ere ;%1 1 %eturns<2 ;%- 1 %is=s<2 ;> 1 >ayout?Co$$ission<2;7 1 7afety<2 ;& 1 &a8 @enefit<
Ana31s!s The rea on for preferring in4e tment option are mainl+ return D pa+out >actor/ 5owe4er ta, .enefit wa econd preference and %i ! D afet+ were the la t/
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GK A//r 7!2at%31 h 5 2an1 #0st 2%rs $ 1 0 s%r.%? Ta-3% n .I.@.I Para2%t%r ' R H' H* R *'' *'* R *H' *H* and a.o4e Total N > r%s/ n$%nts *B &J && BF *'' O > r%s/ n$%nts *B &J && BF *''
$usto%er
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IK What !s 1 0r Br 6%ra4% /a12%nt /%r! $? Ar% 1 0 sat!s>!%$ 5!th !t ? Ta-3% n .I.@.H Para2%t%r N > r%s/ n$%nts O > r%s/ n$%nts * wee! *F *FP & wee! BF BFP B wee! B& B&P G wee! *& *&P Total *'' *'' Sat!s>a#t! n 3%.%3 Ta-3% n .I.@., Para2%t%r Ye No Total
!a" #d
Ana31s!s
Ma-orit+ of the re pondent are not ati fied with the pa+ment period/ The a4erage pa+ment period hould .e le er/
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HK I> a ta7a-3% s%r.!#% /%rs n 5ants t !n.%st( 4%n%ra331 5h!#h /t! n 5 03$ 1 0 s044%st > r !n.%st2%nt? Ta-3% n . I.@.*+ Para2%t%r In urance E3SS Bond Other Total N > r%s/ n$%nts BB &J B& F *'' O > r%s/ n$%nts BBP &JP B&P FP *''
35 30 25 20 15 10 5 0 I&! '(!!
Figure 6o.).A
5ns - 5nsurance2 EL77 1 Equity Lin=ed 7a ing 7c'e$e of 4utual Fund.
"a) savin*
Bond
Others
Ana31s!s It eem that in urance i more ugge ta.le6 then come Bond D E3SS/ Other include6 99>6 infra cheme etc/
,K Ar% 1 0 !nt%r%st%$ t $%a3 !n M0t0a3 F0n$? I> n /3%as% 2%nt! n r%as ns( an$ !> 1%s /3%as% 2%nt! n 1 0r >a. r!t% AMC. Institute of Business Management & Research, Chinchwad, Pune Page I*
,0% +0% 60% 50% 40% 30% 20% 10% 0% -es &o Figure no.).B Resu.t
Ana31s!s Ma-orit+ of the re pondent were intere ted to deal in mutual fund/ 5owe4er ome of them refu ed/ The rea on wa le pa+ out6 not faith in mar!et6 high ri ! in4ol4ed6 3iquidit+ pro.lem etc/ The e are the difficultie in elling Mutual fund Some of the preferred D fa4orite AM$? are %eliance Mutual >und 5D>$ Mutual >und I$I$I 9rudential Mutual >und/ SBI Mutual >und
*+K D 1 0 th!n6 that( $%#!s! ns > r n :%ntr1 3 a$ t 20t0a3 >0n$s !s 4 Institute of Business Management & Research, Chinchwad, Pune
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/0 ,0 +0 60 50 40 30 20 10 0 -'! &O
Figure no.7. !
Resu.t
Ana31s!s Deci ion for no)entr+ load i not accepted .+ ma-orit+ of the re pondent 6 a it ha le ened the pa+)out which earlier wa more/
**K Ar% 1 0 ass #!at%$ 5!th Kar.1? Ta-3% n .I.@.*@ Institute of Business Management & Research, Chinchwad, Pune Page IB
Para2%t%r Ye No Total
,0 +0 60 50 40 30 20 10 0 -es &o
Figure no.).11 Ana31s!s Ma,imum num.er of re pondent are a ociated with 0ar4+6 a it i much popular in the cit+ Allaha.ad/
Resu.t
*<K Ar% 1 0 sat!s>!%$ 5!th s%r.!#%s /r .!$%$ -1 Kar.1Cs A33aha-a$ Bran#h? Ta-3% N .I.@.*) Para2%t%r N > r%s/ n$%nts O > r%s/ n$%nts Page IG
>ull+ ati fied To ome e,tent Not >ull+ ati fied Not ati fied $an?t a+ Total
Resu.t
*@K In >0t0r% 5 03$ 1 0 3!6% att%n$ s%2!nars ' Tra!n!n4 Pr 4ra2s !> arran4%$ -1 Kar.1? Ta-3% n . I.@.*N Para2%t%r N > r%s/ n$%nts O > r%s/ n$%nts Page IH
Ye No Don?t !now
*F HF &G
*F HF &G
Resu.t
Ana31s!s A few of the re pondent are onl+ intere ted to attend eminar D training program6 if arranged D organi:ed .+ !ar4+/ Man+ of the re pondent were lac!ing time factor/
*)K W 03$ 1 0 3!6% t 5 r6 5!th Kar.1 St #6 Br 6!n4 Lt$ !n F0t0r% > r $%a3!n4 M0t0a3 F0n$?
Ta-3% n . I.@.*G Institute of Business Management & Research, Chinchwad, Pune Page II
Ana31s!s 3ea t num.er of re pondent were intere ted to wor! with !ar4+ a an emplo+ee6 the rea on were %eputed name6 Tru t etc/ Ma,imum per on were not intere ted to wor! with 0ar4+6 the rea on were6 3ac! of time6 independenc+6 indi4idual wor!ing hour etc/
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